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DA-21-361A1.Pdf PUBLIC NOTICE Federal Communications Commission News Media Information: 202-418-0500 45 L Street, NE Internet: www.fcc.gov Washington, DC 20554 TTY: 888-835-5322 DA 21-361 April 1, 2021 AUCTION OF AM AND FM BROADCAST CONSTRUCTION PERMITS SCHEDULED FOR JULY 27, 2021 NOTICE AND FILING REQUIREMENTS, MINUMUM OPENING BIDS, UPFRONT PAYMENTS, AND OTHER PROCEDURES FOR AUCTION 109 AU Docket No. 21-39 TABLE OF CONTENTS Heading Paragraph # I. GENERAL INFORMATION .................................................................................................................1 A. Introduction.......................................................................................................................................1 B. Construction Permits Offered in Auction 109 ..................................................................................3 C. Auction Specifics ............................................................................................................................12 1. Auction Start Date ....................................................................................................................12 2. Auction Title.............................................................................................................................14 3. Bidding Methodology and Options ..........................................................................................15 4. Auction Dates and Deadlines ...................................................................................................16 5. Requirements for Participation.................................................................................................17 II. APPLYING TO PARTICIPATE IN AUCTION 109 ...........................................................................18 A. Relevant Authority..........................................................................................................................18 B. General Information Regarding Short-Form Applications .............................................................21 C. Authorized Bidders .........................................................................................................................28 D. Permit Selection ..............................................................................................................................29 E. Disclosure of Agreements and Bidding Arrangements...................................................................30 F. Ownership Disclosure Requirements..............................................................................................35 G. Foreign Ownership Disclosure Requirements ................................................................................36 H. Prohibited Communication and Compliance with Antitrust Laws .................................................37 1. Entities Subject to Section 1.2105(c) .......................................................................................38 2. Scope of Prohibition on Communications; Prohibition on Joint Bidding Agreements ...........39 3. Communicating with Third Parties ..........................................................................................44 4. Section 1.2105(c) Certification ................................................................................................47 5. Duty to Report Prohibited Communications ............................................................................48 6. Procedures for Reporting Prohibited Communications............................................................49 7. Winning Bidders Must Disclose Terms of Agreements...........................................................51 8. Additional Information Concerning Rule Prohibiting Certain Communications in Commission Auctions ..............................................................................................................52 9. Antitrust Laws ..........................................................................................................................53 I. New Entrant Bidding Credit ...........................................................................................................54 1. Application Requirements........................................................................................................63 1 Federal Communications Commission DA 21-361 2. Unjust Enrichment....................................................................................................................64 J. Provisions Regarding Former and Current Defaulters....................................................................65 K. Optional Applicant Status Identification ........................................................................................70 L. Noncommercial Educational Status Election..................................................................................71 M. Modifications to FCC Form 175.....................................................................................................72 1. Only Minor Modifications Allowed.........................................................................................72 2. Duty to Maintain Accuracy and Completeness of FCC Form 175 ..........................................73 3. Modifying an FCC Form 175...................................................................................................74 III. PREPARING FOR BIDDING IN AUCTION 109 ...............................................................................76 A. Due Diligence .................................................................................................................................76 B. Bidder Education – Online Tutorial on Auction Process................................................................82 C. Short-Form Applications – Due Before 6:00 p.m. ET on May 11, 2021 .......................................85 D. Application Processing and Correction of Deficiencies .................................................................88 1. Public Notice of Applicant’s Initial Application Status and Opportunity for Minor Modifications............................................................................................................................88 2. Public Notice of Applicant’s Final Application Status After Upfront Payment Deadline....................................................................................................................................88 E. Upfront Payments ...........................................................................................................................92 1. Making Upfront Payments by Wire Transfer...........................................................................93 2. Completing and Submitting FCC Form 159 ............................................................................96 3. Upfront Payments and Bidding Eligibility...............................................................................97 F. Auction Registration .....................................................................................................................102 G. Remote Electronic Bidding via the FCC Auction Bidding System..............................................106 H. Mock Auction ...............................................................................................................................109 I. Fraud Alert ....................................................................................................................................110 J. Environmental Review Requirements ..........................................................................................112 IV. BIDDING ............................................................................................................................................113 A. Auction Structure ..........................................................................................................................114 1. Simultaneous Multiple Round Auction..................................................................................114 2. FCC Auction Bidding System................................................................................................115 3. Round Structure......................................................................................................................118 4. Eligibility and Activity Rules.................................................................................................120 5. Auction Stages........................................................................................................................124 6. Stage Transitions ....................................................................................................................129 7. Activity Rule Waivers ............................................................................................................132 8. Auction Stopping Rule ...........................................................................................................137 9. Auction Delay, Suspension, or Cancellation..........................................................................140 B. Bidding Procedures.......................................................................................................................142 1. Minimum Opening Bids and Acceptable Bid Amounts.........................................................142 2. Provisionally Winning Bids ...................................................................................................151 3. Bid Removal and
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