DA 97-730
                                                               


                              April 11, 1997


Mr. John Prawat
DigiVox Telecom, Inc.
1750 24th Street, N.W.
Suite 300
Washington, D.C. 20037

     Re:  DigiVox's Request for Rule Waiver of the Upfront Payment Requirement
        in the WCS Auction

Dear Mr. Prawat:

     This letter responds to the "Request for Waiver of Upfront Payment Requirement"
("Waiver Request") filed by DigiVox Telecom, Inc. ("DigiVox") on April 4, 1997.  DigiVox
requests that the Commission waive the Wireless Communications Service ("WCS") auction
upfront payment deadline of April 4, 1997.  DigiVox claims that because a Commission order
reconsidering out-of-band emission limits applicable to WCS licensees was released two days
before the upfront payment deadline, DigiVox did not have sufficient time to obtain financing to
make its upfront payment.  DigiVox states that prospective investors were not willing to finalize
financing agreements until the rules were changed to permit it to operate technologies on the
WCS spectrum that were previously infeasible.  DigiVox asks to make its upfront payment, in
installments, by May 16.  For the reasons discussed below, we deny DigiVox's request. 

     The April 4 deadline, which was set forth in a Public Notice released on February 21,
1997, was necessary to enable the Commission to verify the receipt of the upfront payments, mail
software to bidders, and make final preparations for the April 15 start of the WCS auction, which
is statutorily prescribed by the 1997 Appropriations Act.  In every Commission auction, the
amount of each bidder's upfront payment establishes its eligibility to bid in the auction.  It is
therefore not operationally feasible to allow DigiVox to bid in the WCS auction without having
made an upfront payment.  Furthermore, our Auction System software and associated bidding
"tools" are programmed using the total eligibility figure established from upfront payments.  This
software is thoroughly tested once the auction parameters are established.  Allowing a bidder to
submit an upfront payment late risks the integrity of the auction system itself.  Finally, we note
that all prospective bidders in the WCS had six weeks notice of the upfront payment deadline.  To
waive this deadline for one bidder, may harm qualified bidders who made upfront payments on
time.

     The timing of the release of the WCS Memorandum Opinion and Order does not justify a
waiver of the upfront payment requirement.  DigiVox filed its Petition for Expedited
Reconsideration on March 11, 1997, 20 days after release of the WCS Report and Order.  The
Commission placed the petition on public notice, established an expedited pleading cycle, and
addressed the issues raised in 22 days.  Throughout this period, DigiVox was aware of the upfront
payment deadline, and it should have been prepared to make a timely upfront payment in the event
that its petition was granted.  That it was not successful in doing so does not give grounds for
waiving the upfront payment requirement.

     For the reasons stated above, DigiVox's waiver request IS HEREBY DENIED.  This
action is taken pursuant to delegated authority under Section 0.331 of the Commission's rules, 47
C.F.R.  0.331.

                              Sincerely,


                              Kathleen O'Brien Ham
                              Chief, Auctions Division
                              Wireless Telecommunications Bureau