DA 98-1794

                                             September 4, 1998

Mr. Jack Bond
Mountain SMR Group, L.L.C.
920 S.W. Stephenson Court
Portland, Oregon 97219-7642

    Re:  Erratum to February 26, 1998 Letter to Mr. Jack Bond from Kathleen O'Brien Ham

Dear Mr. Bond:
     
     This letter is in reference to an Order, released February 26, 1998, in which Mountain
SMR Group, L.L.C. ("Mountain SMR") was assessed withdrawal and default payments. 
Mountain SMR, the high bidder for license E-172 A (Honolulu, Hawaii) in the 800 MHz
Specialized Mobile Radio auction, which closed December 8, 1997, withdrew its high bid and
defaulted on its down payment.  In letters dated December 5 and 18, 1997, Mountain SMR
requested a waiver of 47 C.F.R.  90.905(b) and 90.909(b) of the Commission's rules governing
bid withdrawal payments and down payment deadlines.  On February 26, 1998, the Auctions and
Industry Analysis Division ("Division") denied the waiver request and set default and bid
withdrawal payments in the amount of $86,628.

     Following release of the February 26th Order, the Division discovered an error in its
calculation of the amount owed by Mountain SMR.  Instead of the $86,628 amount set forth in
the February 26th Order, Mountain SMR actually owes the Commission a total payment of
$34,251.  This amount represents a total of:  (1) a bid withdrawal payment of $30,550, less
Mountain SMR's upfront payment of $5,542, resulting in a net bid withdrawal payment of
$25,008, plus (2) a default payment of $9,243, which is three percent (3%) of the defaulted net
bid amount ($308,100) as required under Section 90.905 of the Commission's rules.  To date, no
payment has been made by Mountain SMR. 

     Our revised calculation does not change the essence of the February 26th Order.  In that
Order, we stated that, under the Commission's rules, a winning bidder that fails to remit its
required down payment for the license within ten business days after the Commission declares the
auction closed shall be deemed to be in default.  Under such circumstances, the Commission will
dismiss the bidder's application, and the defaulting bidder will be liable for default payments. 
Because Mountain SMR failed to meet its down payment obligations, Mountain SMR is deemed
in default on its payment obligation for License E-172 A.  Mountain SMR is therefore subject to
the default payment, as well as the bid withdrawal payment, specified under Sections 90.905 and
90.909 of the Commission's Rules.

     For the reasons stated above, IT IS ORDERED that Mountain SMR remit payment in the
total amount of $34,251, which includes a net bid withdrawal payment of $25,008 and a default
payment in the amount of $ 9,243.  

     IT IS FURTHER ORDERED that the total payment obligation of $34,251 in this Erratum
is the corrected amount due and owing, and supersedes the payment obligation of $86,628
originally set forth in the February 26, 1998 Order.  

     IT IS FURTHER ORDERED that payment of the total amount due and owing of $34,251
is to be made in accordance with the instructions set forth in Attachment A to this letter within
thirty days from the release of this letter.
  
     IT IS FURTHER ORDERED that Mountain SMR will be subject to the balance of the
payment specified in Section 90.905(c) of the Commission's rules, 47 C.F.R.  90.905(c), once
License E-172 A is reauctioned and the actual default payment is determined.

      IT IS FURTHER ORDERED that this letter shall be sent to the applicant by certified
mail, return receipt requested.  This action is taken under delegated authority pursuant to Section
0.331 of the Commission's Rules.



                              Sincerely,



                              Amy J. Zoslov
                              Chief, Auctions and Industry Analysis Division
                              Wireless Telecommunications Bureau