Federal Register / Vol. 86, No. 118 / Wednesday, June 23, 2021 / Rules and Regulations 32775

Register by using the article search by using the search function for AU 4. On March 18, 2021, in accordance feature at: www.federalregister.gov. Docket No. 21–62, DA 21–655, on the with section 309(j)(3) of the Specifically, through the advanced Commission’s Electronic Comment Communications Act of 1934, as search feature at this site, you can limit Filing System (ECFS) web page at amended (Communications Act), the your search to documents published by www.fcc.gov/ecfs. Alternative formats Commission released a public notice the Department. are available to persons with disabilities seeking comment on certain competitive by sending an email to [email protected] bidding procedures and various other David Cantrell, or by calling the Consumer & procedures to be used in Auction 110. Deputy Director, Office of Special Education Governmental Affairs Bureau at (202) The Commission received comments Programs, delegated the authority to perform from eight parties in response to the the functions and duties of the Assistant 418–0530 (voice), (202) 418–0432 Secretary for the Office of Special Education (TTY). Auction 110 Comment Public Notice, 86 and Rehabilitative Services. FR 18000, April 07, 2021, and eight I. General Information reply comments. In the Auction 110 [FR Doc. 2021–13191 Filed 6–17–21; 4:15 pm] A. Introduction Procedures Public Notice, OEA and BILLING CODE 4000–01–P WTB resolve all open issues raised in 1. By the Auction 110 Procedures the Auction 110 Comment Public Notice Public Notice, the Office of Economics and address the comments received. FEDERAL COMMUNICATIONS and Analytics (OEA), jointly with the 5. Other Commission rules and COMMISSION Wireless Telecommunications Bureau decisions provide the underlying (WTB), establishes the procedures to be authority for the procedures OEA and 47 CFR Parts 1 and 27 used for Auction 110, the auction of WTB adopt today for Auction 110. [AU Docket No. 21–62; DA 21–655; FR ID new flexible-use licenses in the 3.45– Among other things, prospective 32766] 3.55 GHz band (the 3.45 GHz Service). applicants should familiarize Auction 110 is the Commission’s third themselves with the Commission’s Auction of Flexible-Use Service scheduled auction of mid-band general competitive bidding rules, Licenses in the 3.45–3.55 GHz Band for spectrum, which is intended to further including recent amendments and Next-Generation Wireless Services; the deployment of fifth-generation (5G) clarifications thereto, as well as Notice and Filing Requirements, wireless, the Internet of Things (IoT), Commission decisions regarding Minimum Opening Bids, Upfront and other advanced spectrum-based competitive bidding procedures, Payments, and Other Procedures for services across the country. The Auction application requirements, and Auction 110; Bidding in Auction 110 110 Procedures Public Notice continues obligations of Commission licensees. Scheduled To Begin October 5, 2021 to implement section 905 of the Prospective applicants also should Consolidated Appropriations Act, 2021, familiarize themselves with the AGENCY: Federal Communications which required the Commission to start Commission. Commission’s rules regarding the 3.45 an auction to grant new initial licenses GHz Service, as well as the licensing ACTION: Final action; requirements and subject to flexible use in the 3450–3550 and operating rules that are applicable procedures. MHz (3.45 GHz) band by December 31, to all part 27 services. In addition, 2021. SUMMARY: This document establishes the applicants must be thoroughly familiar 2. The bidding for new licenses in procedures to be used for Auction 110, with the procedures, terms, and Auction 110 is scheduled to commence the Auction of new flexible-use licenses conditions contained in the Auction 110 on October 5, 2021. The Auction 110 in the 3.45–3.55 GHz band (the 3.45 Procedures Public Notice and any future Procedures Public Notice provides GHz Service). public notices that may be released in details regarding the procedures, terms, this proceeding. DATES: Applications to participate in conditions, dates, and deadlines 6. The terms contained in the Auction 110 must be submitted before 6 governing participation in Auction 110 Commission’s rules, relevant orders, p.m. Eastern Time (ET) on July 21, 2021. bidding, as well as an overview of the and public notices are not negotiable. Upfront payments for Auction 110 must post-auction application and payment The Commission may amend or be received by 6 p.m. ET on September processes. supplement the information contained 9, 2021. Bidding in Auction 110 is B. Background and Relevant Authority in its public notices at any time and will scheduled to start on October 5, 2021. issue public notices to convey any new FOR FURTHER INFORMATION CONTACT: 3. In the 3.45 GHz Second Report and or supplemental generally applicable General Auction 110 Information: Order, 86 FR 17920, April 7, 2021, the information to applicants. Pursuant to FCC Auctions Hotline at 888–225–5322, Commission made available 100 the Commission’s rules, OEA and WTB option two; or 717–338–2868. megahertz of spectrum in the 3.45–3.55 also retain the authority to implement Auction 110 Legal Information: Mary GHz band for licensed use within the further procedures during the course of Lovejoy or Andrew McArdell at 202– contiguous United States. In that Order, this auction. It is the responsibility of all 418–0660. the Commission allocated the 3.45–3.55 applicants to remain current with all 3.45 GHz Service Information: Joyce GHz band for new non-federal fixed and Commission rules and with all public Jones at 202–418–1327. mobile (except aeronautical mobile) notices pertaining to Auction 110. 3.45 GHz Service Technical operations in the contiguous United Information: Ira Keltz, (202) 418–0616. States. Among other things, the C. Description of Licenses To Be Offered SUPPLEMENTARY INFORMATION: This is a Commission authorized both fixed and in Auction 110 summary of the Auction 110 Procedures mobile operations in the 3.45–3.55 GHz 7. Auction 110 will offer 4,060 new Public Notice, released on June 9, 2021. band using geographic area licensing, flexible-use licenses for spectrum in the The complete text of the Auction 110 established licensing and operating 3.45–3.55 GHz band throughout the Procedures Public Notice, including rules for the new 3.45 GHz Service, and contiguous United States. The 100 attachments and any related document, decided to use its competitive bidding megahertz of spectrum in this band will are available on the Commission’s rules to assign 3.45 GHz Service be licensed on an unpaired basis and website at www.fcc.gov/auction/110 or licenses. divided into ten 10-megahertz blocks in

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partial economic area (PEA)-based announced by public notice at least one the first part of the Commission’s two- geographic areas located in the week before bidding begins. phased auction application process. In contiguous 48 states and the District of 11. Unless otherwise announced, the first phase, a party seeking to Columbia (PEAs 1–41, 43–211, 213–263, bidding on all licenses will be participate in Auction 110 must file a 265–297, 299–359, and 361–411). These conducted on each business day until short-form application in which it 10-megahertz blocks are designated as A bidding has stopped on all licenses. certifies, under penalty of perjury, that through J. it is qualified to participate. Eligibility 2. Auction Dates and Deadlines 8. All 3.45 GHz Service licenses will to participate in Auction 110 is based on be issued for 15-year, renewable license 12. The following dates and deadlines an applicant’s short-form application terms, and certain licenses are subject to apply to Auction 110: and certifications and on the applicant’s cooperative sharing requirements, as Auction Application Tutorial Available submission of a sufficient upfront described in the 3.45 GHz Second (via internet): No later than June 22, payment for the auction. After bidding Report and Order and below, as well as 2021 closes, in the second phase of the any other conditions that may be Short-Form Application (FCC Form 175) process, each winning bidder must file established in related proceedings. Filing Window Opens July 8, 2021, 12 a more comprehensive post-auction, Interested parties will be able to find p.m. Eastern Time (ET) long-form application (FCC Form 601) additional information about the Short-Form Application: (FCC Form for the licenses it wins in the auction, cooperative sharing requirements, 175) and it must have a complete and accurate ownership disclosure including information about the Filing Window Deadline: July 21, 2021, information report (FCC Form 602) on encumbrances in specific PEAs, on the 6 p.m. ET file with the Commission. OEA and National Telecommunications and Upfront Payments (via wire transfer): WTB remind applicants that being Information Administration’s (NTIA) September 2, 2021, 6 p.m. ET deemed qualified to bid in Auction 110 3450–3550 MHz web page at https:// Bidding Tutorial Available (via does not constitute a determination that www.ntia.doc.gov/category/3450-3550- internet): No later than September 16, a party is qualified to hold a mhz. Interested parties can also find 2021 Commission license or is eligible for a additional guidance and information on Mock Auction: September 30, 2021 designated entity bidding credit. federal/non-federal coordination Bidding Begins in Auction 110: October 5, 2021 15. A party seeking to participate in procedures in the public notice issued Auction 110 must file an FCC Form 175 jointly by NTIA and the Commission. 3. Requirements for Participation electronically via the Auction OEA and WTB understand that the Application System prior to 6 p.m. ET Department of Defense (DoD) will hold 13. Those wishing to participate in Auction 110 must: on July 21, 2021, following the one or more workshops to provide • procedures prescribed in the FCC Form further information on transition and Submit a short-form application (FCC Form 175) electronically prior to 6 175 Instructions. If an applicant claims coordination plans, as well as guidance eligibility for a bidding credit, then the on anticipated received power levels p.m. ET on July 21, 2021, following the electronic filing procedures set forth in information provided in its FCC Form from the DoD’s high-powered 175 as of the filing date will be used to operations, methods and means for the FCC Form 175 Instructions. OEA will prepare and make publicly determine whether the applicant may sharing proprietary and classified request the claimed bidding credit. information (e.g., through ‘‘Trusted available detailed instructions for submitting an FCC Form 175 for Below OEA and WTB describe more Agents’’), and descriptions of potential fully the information disclosures and national emergency scenarios. Auction 110 (FCC Form 175 Instructions) in the Education section of certifications required in the short-form 9. Licensees may hold up to four 10- the Auction 110 website at www.fcc.gov/ application. An applicant that files an megahertz blocks (out of a total of ten) auction/110. FCC Form 175 for Auction 110 will be in the 3.45–3.55 GHz band within any • Submit a sufficient upfront subject to the Commission’s rule PEA at any given time for the first four payment and an FCC Remittance Advice prohibiting certain communications. An years after the close of the auction. A Form (FCC Form 159) by 6 p.m. ET on applicant is subject to the prohibition licensee in the 3.45–3.55 GHz band may September 2, 2021, following the beginning at the deadline for filing provide any services permitted under procedures and instructions set forth in short-form applications—6 p.m. ET on terrestrial fixed or mobile, except the FCC Form 159 Instructions. July 21, 2021. The prohibition will end aeronautical mobile, allocations (as set • Comply with all provisions for applicants on the post-auction down forth in the non-Federal Government outlined in the Auction 110 Procedures payment deadline for Auction 110. 16. An applicant bears full column of the Table of Frequency Public Notice and applicable responsibility for submitting an Allocations in section 2.106 of the Commission rules. Commission’s rules, as modified by the accurate, complete, and timely short- 3.45 GHz Second Report and Order), so II. Applying To Participate in Auction form application. Pursuant to the long as it complies with the relevant 110 Commission’s competitive bidding rules, each applicant must make a series licensing, operating, and technical rules. A. General Information Regarding of certifications under penalty of perjury Short-Form Applications D. Auction Specifics on its FCC Form 175 related to the 1. Auction Title and Start Date 14. An application to participate in information provided in its application Auction 110, referred to as a short-form and its participation in the auction, and 10. The auction of licenses in the application or FCC Form 175, provides it must confirm that it is legally, 3.45–3.55 GHz band will be referred to information that the Commission uses to technically, financially, and otherwise as ‘‘Auction 110.’’ Bidding in Auction determine whether the applicant has the qualified to hold a license. Additionally, 110 will begin on Tuesday, October 5, legal, technical, and financial each participant in Auction 110 must 2021. Pre-bidding dates and deadlines qualifications to participate in a certify that it has read the Auction 110 are listed below. The initial schedule for Commission auction for spectrum Procedures Public Notice and has bidding rounds in Auction 110 will be licenses. The short-form application is familiarized itself both with the auction

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procedures and with the requirements generally will not be permitted. This applicant needs additional information for obtaining a license and operating restriction applies across all or guidance concerning the described facilities in the 3.45–3.55 GHz band). If applications, without regard to the disclosure requirements, the applicant an Auction 110 applicant fails to make geographic areas selected. The should review the educational materials the required certifications in its FCC Commission adopted a limited for Auction 110 (see the Education Form 175 by the filing deadline, then its exception to the general prohibition on section of the Auction 110 website at application will be deemed the filing of multiple applications by www.fcc.gov/auction/110) and/or use unacceptable for filing and cannot be commonly controlled entities for the contact information provided in the corrected after the filing deadline. qualified rural wireless partnerships Auction 110 Procedures Public Notice to 17. An applicant should note that and individual members of such consult with Commission staff to better submitting an FCC Form 175 (and any partnerships. 47 CFR 1.2105(a)(3). understand the information it must amendments thereto) constitutes a Under this limited exception, each submit in its short-form application. representation by the certifying official qualifying rural wireless partnership B. License Area Selection that he or she is an authorized and its individual members will be representative of the applicant with permitted to participate separately in an 24. An applicant must select all of the authority to bind the applicant, that he auction. As noted by the Commission in license areas on which it may want to or she has read the form’s instructions adopting the prohibition on applications bid from the list of available PEAs on its and certifications, and that the contents by commonly controlled entities, this FCC Form 175. An applicant must of the application, its certifications, and rule, in conjunction with the carefully review and verify its PEA any attachments are true and correct. prohibition against joint bidding selections before the FCC Form 175 Submitting a false certification to the agreements, protects the filing deadline because those selections Commission may result in penalties, competitiveness of the Commission’s cannot be changed after the auction including monetary forfeitures, license auctions. application filing deadline. An forfeitures, ineligibility to participate in 22. After the initial short-form applicant is not required to place bids future auctions, and/or criminal application filing deadline, Commission on any or all of the license areas prosecution. staff will review all timely submitted selected, but the FCC Auction Bidding 18. Applicants are cautioned that, applications for Auction 110 to System (bidding system) will not accept because the required information determine whether each application bids for blocks located in PEAs that the submitted in FCC Form 175 bears on complies with the application applicant did not select in its FCC Form each applicant’s qualifications, requests requirements and whether the applicant 175. The auction application system, for confidential treatment will not be has provided all required information however, will provide an applicant the routinely granted. The Commission concerning its qualifications for option to select all 406 available PEAs generally has held that it may publicly bidding. After this review is completed, at one time using an ‘‘all PEAs’’ feature. release confidential business a public notice will be released C. Disclosure of Agreements and information where the party has put that announcing the status of applications Bidding Arrangements information at issue in a Commission and identifying the applications that are proceeding or where the Commission complete and those that are incomplete 25. An applicant must provide in its has identified a compelling public because of minor defects that may be FCC Form 175 a brief description of, interest in disclosing the information. In corrected. That public notice also will and identify each party to, any this regard, the Commission specifically establish an application resubmission partnerships, joint ventures, consortia or has held that information submitted in filing window, during which an agreements, arrangements, or support of receiving bidding credits in applicant may make permissible minor understandings of any kind relating to auction proceedings should be made modifications to its application to the licenses being auctioned, including available to the public. address identified deficiencies. The any agreements that address or 19. An applicant must designate public notice will include the deadline communicate directly or indirectly bids between one and three individuals as for resubmitting modified applications. (including specific prices), bidding authorized bidders in its FCC Form 175. To become a qualified bidder, an strategies (including the specific The Commission’s rules prohibit an applicant must have a complete licenses on which to bid or not to bid), individual from serving as an application (i.e., have timely filed an or the post-auction market structure, to authorized bidder for more than one application that is deemed complete which the applicant, or any party that auction applicant. after the deadline for correcting any controls or is controlled by the 20. No individual or entity may file identified deficiencies), and must make applicant, is a party. In connection with more than one short-form application or a timely and sufficient upfront payment. the agreement disclosure requirement, have a controlling interest in more than Qualified bidders will be identified by the applicant must certify under penalty one short-form application. If a party public notice at least 10 days prior to of perjury in its FCC Form 175 that it submits multiple short-form the mock auction. has described, and identified each party applications for an auction, then only 23. The Auction 110 Procedures to, any such agreements, arrangements, one application may form the basis for Public Notice outlines below additional or understandings to which it (or any that party to become qualified to bid in details regarding certain information party that controls it or that controls) is that auction. required to be submitted in the FCC a party. As discussed below, an 21. Similarly, and consistent with the Form 175. An applicant should consult applicant may continue negotiating, Commission’s general prohibition on the Commission’s rules to ensure that, discussing, or communicating with joint bidding agreements, a party in addition to the materials described respect to a new agreement after the generally is permitted to participate in below, all required information is FCC Form 175 filing deadline, provided a Commission auction only through a included in its short-form application. that the communications involved do single bidding entity. Accordingly, the To the extent the information in the not relate both to the licenses being filing of applications in Auction 110 by Auction 110 Procedures Public Notice auctioned and to bids or bidding multiple entities controlled by the same does not address a potential applicant’s strategies or post-auction market individual or set of individuals specific operating structure, or if the structure. If, after the FCC Form 175

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filing deadline, an auction applicant consortium or joint venture in an to bid), or the post-auction market enters into any agreement relating to the auction, and non-nationwide providers structure, to which the applicant, or any licenses being auctioned, then it is that are not designated entities may party that controls or is controlled by subject to these same disclosure participate in an auction through only the applicant, is a party. obligations. Each applicant must one joint venture. While two or more D. Ownership Disclosure Requirements maintain the accuracy and completeness non-nationwide providers may of the information in its pending participate in an auction through a joint 33. Each applicant must comply with auction application. venture, a nationwide and a non- the applicable part 1 ownership 26. For purposes of making the nationwide provider may not do so. A disclosure requirements and provide required agreement disclosures on the non-nationwide provider may enter into information required by sections 1.2105 FCC Form 175, if parties agree in only one agreement to form a and 1.2112, and, where applicable, principle on all material terms prior to consortium or joint venture (as section 1.2110, of the Commission’s the application filing deadline, then applicable), and such consortium or rules. Specifically, in completing FCC each party to the agreement that is joint venture shall be the exclusive Form 175, an applicant must fully submitting an auction application must bidding vehicle for its members in the disclose information regarding the real provide a brief description of, and auction. The general prohibition on party- or parties-in-interest in the identify the other party or parties to, the joint bidding arrangements excludes applicant or application and the agreement on its respective FCC Form certain agreements, including those that ownership structure of the applicant, 175, even if the agreement has not been are solely operational in nature, as including both direct and indirect reduced to writing. Parties that have not defined in section 1.2105(a)(2)(ix)(A)– ownership interests of 10% or more, as agreed in principle by the FCC Form (C) of the Commission’s rules. prescribed in sections 1.2105 and 175 filing deadline should not describe, 30. To implement the prohibition on 1.2112 and, where applicable, section or include the names of parties to, the joint bidding arrangements, the 1.2110 of the Commission’s rules. Each discussions on their applications. Commission’s rules require each applicant is responsible for ensuring 27. The Commission’s rules generally applicant to certify in its short-form that information submitted in its short- prohibit joint bidding and other application that it has disclosed any form application is complete and arrangements involving auction arrangements or understandings of any accurate. applicants (including any party that kind relating to the licenses being 34. In certain circumstances, an controls or is controlled by such auctioned to which it (or any party that applicant may have previously filed an applicants). For purposes of the controls or is controlled by it) is a party. FCC Form 602 ownership disclosure prohibition, a joint bidding arrangement The applicant must also certify that it information report or filed an auction includes any arrangement relating to the (or any party that controls or is application for a previous auction in licenses being auctioned that addresses controlled by it) has not entered and which ownership information was or communicates, directly or indirectly, will not enter into any arrangement or disclosed. The most current ownership bidding at the auction, bidding understanding of any kind relating information contained in any FCC Form strategies, including arrangements directly or indirectly to bidding at 602 or previous auction application on regarding price or the specific licenses auction with, among others, any other file with the Commission that used the on which to bid, and any such applicant or a nationwide provider. same FCC Registration Number (FRN) arrangement relating to the post-auction 31. Although the Commission’s rules the applicant is using to submit its FCC market structure. do not prohibit auction applicants from Form 175 will automatically be pre- 28. This prohibition applies to joint communicating about matters that are filled into certain ownership sections on bidding arrangements involving two or within the scope of an excepted the applicant’s FCC Form 175, if such more nationwide providers, as well as agreement that has been disclosed in an information is in an electronic format joint bidding arrangements involving a FCC Form 175, the Commission reminds compatible with FCC Form 175. nationwide provider and one or more applicants that certain discussions or Applicants are encouraged to submit an non-nationwide providers, where at exchanges could nonetheless touch FCC Form 602 ownership report or least one party to the arrangement is an upon impermissible subject matters, and update any ownership information on applicant for the auction. In the that compliance with the Commission’s file with the Commission in an FCC Updating Part 1 Report and Order, 80 rules will not insulate a party from Form 602 ownership report prior to FR 56763, Sep. 18, 2015, the enforcement of the antitrust laws. starting a short-form application for Commission stated that entities that 32. Applicants should bear in mind Auction 110 to ensure that their most qualify as nationwide providers that a winning bidder will be required recent ownership information is pre- generally would be identified in to disclose in its FCC Form 601 post- filled into their short-form application. procedures public notices released auction application the specific terms, Each applicant must carefully review before each auction. To that end, and conditions, and parties involved in any any ownership information consistent with the Commission’s agreement relating to the licenses being automatically entered into its FCC Form decisions in recent spectrum auctions, auctioned into which it had entered 175, including any ownership the Commission considers AT&T, T- prior to the time bidding was attachments, to confirm that all Mobile, and Verizon to be ‘‘nationwide completed. This applies to any bidding information supplied on FCC Form 175 providers’’ for the purpose of consortium, joint venture, partnership, is complete and accurate as of the implementing the competitive bidding or other agreement, arrangement, or application filing deadline. Any rules in Auction 110. understanding of any kind entered into information that needs to be corrected 29. Under certain circumstances, a relating to the competitive bidding or updated must be changed directly in non-nationwide provider may enter into process, including any agreements FCC Form 175. an agreement to form a consortium or a relating to the licenses being auctioned joint venture (as applicable) that results that address or communicate directly or E. Foreign Ownership Disclosure in a single party applying to participate indirectly bids (including specific Requirements in an auction. Specifically, a designated prices), bidding strategies (including the 35. Section 310 of the entity (DE) can participate in one specific licenses on which to bid or not Communications Act requires the

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Commission to review foreign associated with limiting information applicant, in any manner the substance investment in radio station licenses and disclosure support adoption of such of their own, or each other’s, or any imposes specific restrictions on who procedures and outweigh the potential other applicants’ bids or bidding may hold certain types of radio licenses. benefits of full disclosure. strategies (including post-auction Section 310 applies to applications for 38. Once the bidding begins in market structure), or discussing or initial radio licenses, applications for Auction 110, under the limited negotiating settlement agreements, until assignments and transfers of control of information procedures (sometimes also after the down payment deadline. . . .’’ radio licenses, and spectrum leasing referred to as anonymous bidding), 1. Entities Subject to Section 1.2105(c) arrangements under the Commission’s information to be made public after each secondary market rules. In completing round of bidding will include, for 43. An ‘‘applicant’’ for purposes of FCC Form 175, an applicant is required licenses in each geographic area, the this rule includes all ‘‘controlling to disclose information concerning supply, the aggregate demand, the price interests’’ in the entity submitting the foreign ownership of the applicant. If an at the end of the last completed round, FCC Form 175 auction application, as applicant has foreign ownership and the price for the next round. The well as all holders of interests interests in excess of the applicable identities of bidders placing specific amounting to 10% or more of the entity limit or benchmark set forth in section bids and the net bid amounts (reflecting (including institutional investors and 310(b), then it may seek to participate in bidding credits) will not be disclosed asset management companies), and all Auction 110 as long as it has filed a until after the close of bidding. officers and directors of that entity. petition for declaratory ruling with the 39. Throughout the auction, bidders Under section 1.2105(c), a party that Commission prior to the FCC Form 175 will have access to additional submits an application becomes an filing deadline. An applicant must information related to their own bidding ‘‘applicant’’ under the rule at the certify in its FCC Form 175 that, as of and bidding eligibility through the application deadline, and that status the deadline for filing its application to Commission’s bidding system. For does not change based on later participate in the auction, the applicant example, bidders will be able to view developments. Thus, an auction either is in compliance with the foreign their own level of eligibility, both before applicant that does not correct ownership provisions of section 310 or and during the auction. deficiencies in its application, fails to has filed a petition for declaratory ruling 40. After the close of bidding, bidders’ submit a timely and sufficient upfront requesting Commission approval to PEA selections, upfront payment payment, or does not otherwise become exceed the applicable foreign ownership amounts, bidding eligibility, bids, and qualified, remains an ‘‘applicant’’ for limit or benchmark in section 310(b) other bidding-related actions will be purposes of the rule and remains subject that is pending before, or has been made publicly available. to the prohibition on certain granted by, the Commission. Additional 41. OEA and WTB warn applicants communications until the Auction 110 information concerning foreign that direct or indirect communication to down payment deadline. ownership disclosure requirements is other applicants or the public disclosure 44. As the Commission proposed in provided in the FCC Form 175 of non-public information (e.g., the Auction 110 Comment Public Instructions. reductions in eligibility, identities of Notice, OEA and WTB consider AT&T, bidders) could violate the Commission’s T-Mobile, and Verizon to be F. Information Procedures During the rule prohibiting certain ‘‘nationwide providers’’ for the Auction Process communications. Therefore, to the purposes of the prohibited 36. Consistent with past practice in extent an applicant believes that such a communications rule for Auction 110. many prior spectrum license auctions, disclosure is required by law or OEA and WTB adopt the Commission’s regulation, including regulations issued 2. Prohibition Applies Until Down proposal to limit information available by the U.S. Securities and Exchange Payment Deadline in Auction 110 in order to prevent the Commission (SEC), OEA and WTB 45. The prohibition in section identification of bidders placing strongly urge that the applicant consult 1.2105(c) on certain communications particular bids until after the bidding with the Commission staff in the begins at an auction’s short-form has closed. More specifically, OEA will Auctions Division before making such application filing deadline and ends at not make public until after bidding has disclosure. the auction’s down payment deadline closed: (1) The PEAs that an applicant after the auction closes, which will be G. Prohibited Communications and selects for bidding in its short-form announced in a future public notice. Compliance With Antitrust Laws application, (2) the amount of any 3. Scope of Prohibition on Certain upfront payment made by or on behalf 42. The rules prohibiting certain of an applicant for Auction 110, (3) any communications set forth in section Communications; Prohibition on Joint applicant’s bidding eligibility, and (4) 1.2105(c) apply to each applicant that Bidding Agreements any other bidding-related information files a short-form application (FCC Form 46. Section 1.2105(c) of the that might reveal the identity of the 175) in Auction 110. Section Commission’s rules prohibits certain bidder placing a bid. 1.2105(c)(1) of the Commission’s rules communications between applicants for 37. The limited information provides that, subject to specified an auction, regardless of whether the procedures used in past auctions have exceptions, ‘‘[a]fter the short-form applicants seek permits or licenses in helped safeguard against potential application filing deadline, all the same geographic area or market. The anticompetitive behavior such as applicants are prohibited from rule also applies to communications by retaliatory bidding and collusion. No cooperating or collaborating with applicants with non-applicant commenters objected to this proposal, respect to, communicating with or nationwide providers of and OEA and WTB find nothing in the disclosing, to each other or any communications services and by record to suggest departure from the nationwide provider [of nationwide applicants with non- Commission’s now-established practice communications services] that is not an applicant non-nationwide providers. of implementing these procedures in applicant, or, if the applicant is a The rule further prohibits ‘‘joint bidding wireless spectrum auctions. OEA and nationwide provider, any non- arrangements,’’ including arrangements WTB find that the competitive benefits nationwide provider that is not an relating to the permits or licenses being

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auctioned that address or communicate, prohibiting joint bidding, section include, but are not limited to, directly or indirectly, bidding at the 1.2105(c)(1) prohibits applicants from management, sales, local marketing auction, bidding strategies, including communicating with specified other agreements, and other transactional arrangements regarding price or the parties only with respect to ‘‘their own, agreements. specific permits or licenses on which to or each other’s, or any other applicant’s 52. OEA and WTB caution applicants bid, and any such arrangements relating bids or bidding strategies . . . .’’ The that bids or bidding strategies may be to the post-auction market structure. Prohibited Communications Guidance communicated outside of situations that The rule allows for limited exceptions Public Notice, 80 FR 63215, Oct. 19, involve one party subject to the for communications within the scope of 2015, released in advance of the prohibition communicating privately any arrangement consistent with the broadcast incentive auction (Auction and directly with another such party. exclusion from the Commission’s rule 1000) reviewed the scope of the For example, the Commission has prohibiting joint bidding, provided such prohibition generally, as well as in that warned that prohibited communications arrangement is disclosed on the specific auction’s forward auction of concerning bids and bidding strategies applicant’s auction application. spectrum licenses and reverse auction to may include communications regarding Applicants may communicate pursuant relinquish broadcast licenses. As the capital calls or requests for additional to any pre-existing agreements, Commission explained therein, a funds in support of bids or bidding arrangements, or understandings communication conveying ‘‘bids or strategies to the extent such relating to the licenses being auctioned bidding strategies (including post- communications convey information that are solely operational or that auction market structure)’’ must also concerning the bids and bidding provide for the transfer or assignment of relate to the ‘‘licenses being auctioned’’ strategies directly or indirectly. licenses, provided that such agreements, in order to be covered by the Moreover, the Commission found a arrangements, or understandings are prohibition. Thus, the prohibition is violation of the rule against prohibited disclosed on their applications and do limited in scope and does not apply to communications when an applicant not both relate to the licenses at auction all communications between or among used the Commission’s bidding system and address or communicate bids the specified parties. The Commission to disclose its bidding strategy in a (including amounts), bidding strategies, consistently has made clear that manner that explicitly invited other or the particular permits or licenses on application of the rule prohibiting auction participants to cooperate and which to bid or the post-auction market communications has never required collaborate in specific markets, and it structure. total suspension of essential ongoing has placed auction participants on 47. In addition to express statements business. Entities subject to the notice that the use of its bidding system of bids and bidding strategies, the prohibition may negotiate agreements to disclose market information to prohibition against communicating in during the prohibition period, provided competitors will not be tolerated and any manner includes public disclosures that the communications involved do will subject bidders to sanctions. as well as private communications and not relate to both: (1) The licenses being 53. Likewise, when completing a indirect or implicit communications. auctioned and (2) bids or bidding short-form application, each applicant Consequently, an applicant must take strategies or post-auction market should avoid any statements or care to determine whether its auction- structure. disclosures that may violate section related communications may reach 50. Accordingly, business discussions 1.2105(c), particularly in light of the another applicant. OEA and WTB and negotiations that are unrelated to limited information procedures in effect remind applicants that they must bidding in Auction 110 and that do not for Auction 110. Specifically, an determine whether their convey information about the bids or applicant should avoid including any communications with other parties are bidding strategies, including the post- information in its short-form application permissible under the rule once the auction market structure, of an that might convey information regarding prohibition begins at the deadline for applicant are not prohibited by the rule. its PEA selections, such as referring to submitting applications, even before the Moreover, not all auction-related certain markets in describing public notice identifying applicants is information is covered by the agreements, including any information released. prohibition. For example, in application attachments that will be 48. Parties subject to section 1.2105(c) communicating merely whether a party publicly available that may otherwise should take special care in has or has not applied to participate in disclose the applicant’s PEA selections, circumstances where their officers, Auction 110 will not violate the rule. In or using applicant names that refer to directors, and employees may receive contrast, communicating, among other licenses being offered. information directly or indirectly things, how a party will participate, 54. Applicants also should be mindful relating to any applicant’s bids or including specific geographic areas that communicating non-public bidding strategies. Such information selected, specific bid amounts, and/or application or bidding information may be deemed to have been received whether or not the party is placing bids, publicly or privately to another by the applicant under certain would convey bids or bidding strategies applicant may violate section 1.2105(c) circumstances. For example, and would be prohibited. even though that information Commission staff have found that, 51. While section 1.2105(c) does not subsequently may be made public where an individual serves as an officer prohibit business discussions and during later periods of the application and director for two or more applicants, negotiations among auction applicants or bidding processes. the bids and bidding strategies of one that are unrelated to the auction, each applicant are presumed to be conveyed applicant must remain vigilant not to 4. Communicating With Third Parties to the other applicant through the communicate, directly or indirectly, 55. Section 1.2105(c) does not shared officer, which creates an information that affects, or could affect, prohibit an applicant from apparent violation of the rule. bids or bidding strategies. Certain communicating bids or bidding 49. Subject to the limited exceptions discussions might touch upon subject strategies to a third party, such as a for communications within the scope of matters that could convey price or consultant or consulting firm, counsel, any arrangement consistent with the geographic information related to or lender. The applicant should take exclusion from the Commission’s rule bidding strategies. Such subject areas appropriate steps, however, to ensure

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that any third party it employs for that it has applied to participate in the ECFS. Filing through the Office of advice pertaining to its bids or bidding auction will not violate the rule, an Secretary or ECFS could allow the strategies does not become a conduit for applicant’s statement to the press that it report to become publicly available and prohibited communications to other intends to stop bidding in an auction might result in the communication of specified parties, as that would violate could give rise to a finding of a section prohibited information to other auction the rule. For example, an applicant 1.2105 violation. Similarly, an applicants. This rule is designed to might require a third party, such as a applicant’s public statement of intent minimize the risk of inadvertent lender, to sign a non-disclosure not to place bids during bidding in dissemination of information in such agreement before the applicant Auction 110 could also violate the rule. reports. Any reports required by section communicates any information 5. Section 1.2105(c) Certifications 1.2105(c) must be filed consistent with regarding bids or bidding strategy to the the instructions set forth in the Auction third party. Within third-party firms, 59. By electronically submitting its 110 Procedures Public Notice. For separate individual employees, such as FCC Form 175 auction application, each Auction 110, such reports must be filed attorneys or auction consultants, may applicant for Auction 110 certifies its with the Chief of the Auctions Division, advise individual applicants on bids or compliance with section 1.2105(c) of the Office of Economics and Analytics, by bidding strategies, as long as such firms rules. The mere filing of a certifying the most expeditious means available. implement firewalls and other statement as part of an application, Any such report should be submitted by compliance procedures that prevent however, will not outweigh specific email to the Auctions Division Chief such individuals from communicating evidence that a prohibited and sent to [email protected]. If you the bids or bidding strategies of one communication has occurred, nor will it choose instead to submit a report in applicant to other individuals preclude the initiation of an hard copy, contact Auctions Division representing separate applicants. investigation when warranted. Any staff at [email protected] or (202) Although firewalls and/or other applicant found to have violated these 418–0660 for guidance. communication prohibitions may be procedures should be used, their 63. Given the potential competitive subject to sanctions. existence is not an absolute defense to sensitivity of public disclosure of liability if a violation of the rule has 6. Duty To Report Prohibited information in such a report, a party occurred. Communications seeking to report such a prohibited 56. As the Commission has noted in communication should consider other spectrum auctions, in the case of 60. Section 1.2105(c)(4) requires that submitting its report with a request that an individual, the objective any applicant that makes or receives a the report or portions of the submission precautionary measure of a firewall is communication that appears to violate be withheld from public inspection by not available. As a result, an individual section 1.2105(c) must report such following the procedures specified in that is privy to bids or bidding communication in writing to the section 0.459 of the Commission’s rules. information of more than one applicant Commission immediately, and in no OEA and WTB encourage such parties presents a greater risk of becoming a case later than five business days after to coordinate with the Auctions conduit for a prohibited the communication occurs. Each communication. OEA and WTB will applicant’s obligation to report any such Division staff about the procedures for take the same approach to interpreting communication continues beyond the submitting such reports. the prohibited communications rule in five-day period after the communication 8. Winning Bidders Must Disclose Auction 110. OEA and WTB emphasize is made, even if the report is not made Terms of Agreements that whether a prohibited within the five-day period. communication has taken place in a 64. Each applicant that is a winning 7. Procedures for Reporting Prohibited bidder will be required to provide as given case will depend on all the facts Communications pertaining to the case, including who part of its long-form application any possessed what information, what 61. A party reporting any information agreement or arrangement it has entered information was conveyed to whom, or communication pursuant to sections into and a summary of the specific and the course of bidding in the auction. 1.65, 1.2105(a)(2), or 1.2105(c)(4) must terms, conditions, and parties involved 57. OEA and WTB remind potential take care to ensure that any report of a in any agreement it has entered into. applicants that they may discuss the prohibited communication does not This applies to any bidding consortia, short-form application or bids for itself give rise to a violation of section joint venture, partnership, or agreement, specific licenses or license areas with 1.2105(c). For example, a party’s report understanding, or other arrangement the counsel, consultant, or expert of of a prohibited communication could entered into relating to the competitive their choice before the short-form violate the rule by communicating bidding process, including any application deadline. Furthermore, the prohibited information to other parties agreement relating to the post-auction same third-party individual could specified under the rule through the use market structure. Failure to comply with continue to give advice after the short- of Commission filing procedures that the Commission’s rules can result in form deadline regarding the application, allow such materials to be made enforcement action. provided that no information pertaining available for public inspection. 9. Additional Information Concerning 62. Parties must file only a single to bids or bidding strategies, including Prohibition on Certain Communications report concerning a prohibited PEAs selected on the short-form in Commission Auctions application, is conveyed to that communication and must file that report individual. with the Commission personnel 65. A summary listing of documents 58. Applicants also should use expressly charged with administering issued by the Commission, OEA, and caution in their dealings with other the Commission’s auctions. This process WTB addressing the application of parties, such as members of the press, differs from filing procedures used in section 1.2105(c) is available on the financial analysts, or others who might connection with other Commission Commission’s auction web page at become conduits for the communication rules and processes, which may call for www.fcc.gov/summary-listing- of prohibited bidding information. For submission of filings to the documents-addressing-application-rule- example, even though communicating Commission’s Office of the Secretary or prohibiting-certain-communications.

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10. Antitrust Laws provider bidding credit and • A bidder that qualifies as a ‘‘very 66. Regardless of compliance with the subsequently winning license(s). These small business’’—i.e., one with Commission’s rules, applicants remain bidding credits will not be cumulative— attributed average annual gross revenues subject to the antitrust laws, which are an applicant is permitted to claim either that do not exceed $20 million for the designed to prevent anticompetitive a small business bidding credit or a preceding five years—is eligible to behavior in the marketplace. rural service provider bidding credit, receive a 25% discount on its overall Compliance with the disclosure but not both. Each applicant must also payment. 72. In adopting this two-tiered requirements of section 1.2105(c)(4) will certify that it is eligible for the claimed approach in the 3.45 GHz Second not insulate a party from enforcement of bidding credit in its FCC Form 175. In Report and Order, the Commission the antitrust laws. For instance, a addition to the information provided below, each applicant should review observed that this approach would violation of the antitrust laws could provide consistency and predictability arise out of actions taking place well carefully the Commission’s decisions regarding the designated entity for small businesses. before any party submits a short-form 73. Small business bidding credits are application. The Commission has cited provisions as well as the part 1 rules. 70. In particular, the Commission not cumulative; an eligible applicant a number of examples of potentially may receive either the 15% or the 25% anticompetitive actions that would be reminds applicants applying for designated entity bidding credits that bidding credit on its overall payment, prohibited under antitrust laws: For but not both. The Commission’s unjust example, actual or potential competitors they should take due account of the requirements of the Commission’s rules enrichment provisions also apply to a may not agree to divide territories in winning bidder that uses a bidding order to minimize competition, and implementing orders regarding de jure and de facto control of such credit and subsequently seeks to assign regardless of whether they split a market or transfer control of its license within applicants. These rules include a in which they both do business, or a certain period to an entity not prohibition, which applies to all whether they merely reserve one market qualifying for at least the same level of applicants (whether they seek bidding for one and another market for the other. small business bidding credit. 67. To the extent that Commission credits or not), against changes in 74. Each applicant claiming a small staff become aware of specific ownership of the applicant that would business bidding credit must disclose allegations that suggest that violations of constitute an assignment or transfer of the gross revenues for the preceding five the federal antitrust laws may have control. This may, in some years for each of the following: (1) The occurred, they may refer such circumstances, include changes in applicant, (2) its affiliates, (3) its allegations to the United States officers or directors. Applicants should controlling interests, and (4) the Department of Justice for investigation. not expect to receive any opportunities affiliates of its controlling interests. The If an applicant is found to have violated to revise their ownership structure after applicant must also submit an the antitrust laws or the Commission’s the filing of their short- and long-form attachment that lists all parties with rules in connection with its applications, including making which the applicant has entered into participation in the competitive bidding revisions to their agreements or other any spectrum use agreements or process, then it may be subject to a arrangements with interest holders, arrangements for any licenses that may forfeiture and may be prohibited from lenders, or others in order to address be won by the applicant in Auction 110. participating further in Auction 110 and potential concerns relating to In addition, to the extent that an in future auctions, among other compliance with the designated entity applicant has an agreement with any sanctions. bidding credit requirements. This policy disclosable interest holder for the use of will help to ensure compliance with the more than 25% of the spectrum capacity H. Provisions for Small Businesses and Commission’s rules applicable to the of any license that may be won in Rural Service Providers award of bidding credits prior to the Auction 110, the applicant must 68. A bidding credit represents an conduct of the auction, which will disclose the identity and the attributable amount by which a bidder’s overall involve competing bids from those that gross revenues of any such disclosable payment across all the licenses won will do and do not seek bidding credits, and interest holder. This attribution rule be discounted, subject to the caps thus preserves the integrity of the will be applied on a license-by-license discussed below. As set forth in section auction process. OEA and WTB also basis. As a result, an applicant may be 1.2110 of the Commission’s rules, and believe that this will meet the eligible for a bidding credit on some, but as described below, these rule revisions Commission’s objectives in awarding not all, of the licenses for which it is include, but are not limited to: (1) licenses through the competitive bidding in Auction 110. If an applicant Adopting a two-pronged standard for bidding process. is applying as a consortium of small evaluating eligibility for small business 1. Small Business Bidding Credit businesses, then the disclosures benefits, (2) establishing a new described in this paragraph must be attribution rule for certain disclosable 71. For Auction 110, bidding credits provided for each consortium member. interest holders of applicants claiming will be available to eligible small designated entity benefits, (3) updating businesses and consortia thereof, subject 2. Rural Service Provider Bidding Credit the gross revenue amounts defining to the caps discussed below. Under the 75. An eligible applicant may request eligibility for small business benefits, (4) service rules applicable to the 3.45 GHz a 15% discount on its overall payment creating a separate bidding credit for Service licenses to be offered in Auction using a rural service provider bidding eligible rural service providers, and (5) 110, the level of bidding credit available credit, subject to the cap discussed establishing caps on the total amount of is determined as follows: below. To be eligible for a rural service designated entity benefits any eligible • A bidder that qualifies as a ‘‘small provider bidding credit, an applicant winning bidder may receive. business’’—i.e., one with attributed must: (1) Be a service provider that is in 69. In Auction 110, designated entity average annual gross revenues that do the business of providing commercial bidding credits will be available to not exceed $55 million for the preceding communications services and, together applicants demonstrating eligibility for five years—is eligible to receive a 15% with its controlling interests, affiliates, a small business or a rural service discount on its overall payment. and the affiliates of its controlling

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interests, has fewer than 250,000 licenses won in PEAs with populations demonstrate its eligibility for the combined wireless, wireline, of 500,000 or less. bidding credit by: (1) Meeting the broadband, and cable subscribers; and applicable small business size standard, 4. Attributable Interests (2) serve predominantly rural areas. based on the controlling interest and Rural areas are defined as counties with a. Controlling Interests and Affiliates affiliation rules discussed in the a population density of 100 or fewer 78. Pursuant to section 1.2110 of the Auction 110 Procedures Public Notice; persons per square mile. An applicant Commission’s rules, an applicant’s and (2) retaining control, on a license- seeking a rural service provider bidding eligibility for designated entity benefits by-license basis, over the spectrum credit must provide the number of is determined by attributing the gross associated with the licenses for which it subscribers served as of the short-form revenues (for those seeking small seeks small business benefits. For application deadline. An applicant may business benefits) or subscribers (for purposes of the first prong of the count any subscriber as a single those seeking rural service provider standard, applicants should note that subscriber even if that subscriber benefits) of the applicant, its affiliates, control and affiliation may arise receives more than one service. its controlling interests, and the through, among other things, ownership 76. Each applicant seeking a rural affiliates of its controlling interests. interests, voting interests, management service provider bidding credit must Controlling interests of an applicant and other operating agreements, or the disclose the number of its subscribers, include individuals and entities with terms of any other types of agreements— along with the number of subscribers of including spectrum lease agreements— either de facto or de jure control of the its affiliates, controlling interests, and that independently or together create a applicant. Typically, ownership of the affiliates of its controlling interests. controlling, or potentially controlling, greater than 50% of an entity’s voting The applicant must also submit an interest in the applicant’s or licensee’s stock evidences de jure control. De facto attachment that lists all parties with business as a whole. In addition, once control is determined on a case-by-case which the applicant has entered into an applicant demonstrates eligibility as basis based on the totality of the any spectrum use agreements or a small business under the first prong, circumstances. The following are some arrangements for any licenses that may it must also be eligible for benefits on common indicia of de facto control: be won by the applicant in Auction 110. a license-by-license basis under the • The entity constitutes or appoints In addition, to the extent that an second prong. As part of making the more than 50% of the board of directors applicant has an agreement with any FCC Form 175 certification that it is or management committee; disclosable interest holder for the use of qualified as a designated entity under • the entity has authority to appoint, more than 25% of the spectrum capacity section 1.2110, an applicant is certifying promote, demote, and fire senior of any license that may be won in that it does not have any spectrum use Auction 110, the identity and the executives that control the day-to-day or other agreements that would confer activities of the licensee; and attributable subscribers of any such • either de jure or de facto control of any disclosable interest holder must be the entity plays an integral role in license it seeks to acquire with bidding disclosed. Like applicants seeking management decisions. credits. eligibility for small business bidding 79. Additionally, for attribution 82. Applicants should note that, credits, eligible rural service providers purposes, officers and directors of an under this standard for evaluating may also form a consortium. If an applicant seeking a bidding credit are eligibility for small business bidding applicant is applying as a consortium of considered to have a controlling interest credits, if an applicant executes a rural service providers, then the in the applicant. Applicants should spectrum use agreement that does not disclosures described in this paragraph, refer to section 1.2110(c)(2) of the comply with the Commission’s relevant including the certification, must be Commission’s rules and the FCC Form standard of de facto control, then it will provided for each consortium member. 175 Instructions to understand how be subject to unjust enrichment certain interests are calculated in obligations for the benefits associated 3. Caps on Bidding Credits determining control for purposes of with that particular license, as well as 77. Eligible applicants claiming either attributing gross revenues. the penalties associated with any a small business or rural service 80. Affiliates of an applicant or violation of section 310(d) of the provider bidding credit will be subject controlling interest include an Communications Act and related to specified caps on the total amount of individual or entity that: (1) Directly or regulations, which require Commission bidding credit discounts that they may indirectly controls or has the power to approval of transfers of control. If that receive. OEA and WTB adopt the control the applicant, (2) is directly or spectrum use agreement (either alone or bidding credit caps for Auction 110 at indirectly controlled by the applicant, in combination with the designated the amounts proposed by the (3) is directly or indirectly controlled by entity controlling interest and Commission in the Auction 110 a third party that also controls or has the attribution rules described above) goes Comment Public Notice. Specifically, power to control the applicant, or (4) so far as to confer control of the OEA and WTB adopt a $25 million cap has an identity of interest with the applicant’s overall business, then the on the total amount of bidding credit applicant. The Commission’s definition gross revenues of the additional interest discounts that may be awarded to an of an affiliate of the applicant holders will be attributed to the eligible small business, and a $10 encompasses both controlling interests applicant, which could render the million cap on the total amount of of the applicant and affiliates of applicant ineligible for all current and bidding credit discounts that may be controlling interests of the applicant. future small business benefits on all awarded to an eligible rural service For more information on the application licenses. provider. Additionally, to create parity requirements regarding controlling among eligible small businesses and interests and affiliates, applicants b. Limitation on Spectrum Use rural service providers competing should refer to sections 1.2110(c)(2) and 83. Under section 1.2110(c)(2)(ii)(J) of against each other in smaller markets, (c)(5) respectively, as well as the FCC the Commission’s rules, the gross no winning designated entity bidder Form 175 Instructions. revenues (or the subscribers, in the case may receive more than $10 million in 81. An applicant seeking a small of a rural service provider) of an bidding credit discounts in total for business bidding credit must applicant’s disclosable interest holder

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are attributable to the applicant, on a applicant. Moreover, if an officer or I. Provisions Regarding Former and license-by-license basis, if the director operates a separate business, Current Defaulters disclosable interest holder has an then the gross revenues derived from 89. Pursuant to the rules governing agreement with the applicant to use, in that business would be attributed to the competitive bidding, each applicant any manner, more than 25% of the applicant. must make certifications regarding spectrum capacity of any license won by 86. The Commission has also whether it is a current or former the applicant and acquired with a exempted from attribution to the defaulter or delinquent. A current bidding credit during the five-year applicant the gross revenues of the defaulter or delinquent is not eligible to unjust enrichment period for the affiliates of a rural telephone participate in Auction 110, but a former applicable license. For purposes of this defaulter or delinquent may participate requirement, a disclosable interest cooperative’s officers and directors, if certain conditions specified in section so long as it is otherwise qualified and holder of an applicant seeking makes an upfront payment that is 50% designated entity benefits is defined as 1.2110(b)(4)(iii) of the Commission’s rules are met. An applicant claiming more than would otherwise be any individual or entity holding a 10% necessary. Accordingly, each applicant or greater interest of any kind in the this exemption must provide, in an attachment, an affirmative statement must certify under penalty of perjury on applicant, including but not limited to, its FCC Form 175 that it, its affiliates, its a 10% or greater interest in any class of that the applicant, affiliate and/or controlling interest is an eligible rural controlling interests, and the affiliates of stock, warrants, options, or debt its controlling interests are not in securities in the applicant or licensee. telephone cooperative within the meaning of section 1.2110(b)(4)(iii), and default on any payment for a Any applicant seeking a bidding credit Commission construction permit or for licenses won in Auction 110 will be the applicant must supply any license (including down payments) and subject to this attribution rule and must additional information as may be that it is not delinquent on any non-tax make the requisite disclosures. required to demonstrate eligibility for debt owed to any Federal agency. 84. Certain disclosable interest the exemption from the attribution rule. Additionally, an applicant must certify holders may be excluded from this 87. An applicant claiming a rural attribution rule. Specifically, an under penalty of perjury whether it service provider bidding credit may be (along with its controlling interests) has applicant claiming the rural service eligible for an exception from the provider bidding credit may have ever been in default on any payment for Commission’s attribution rules as an spectrum license use agreements with a a Commission construction permit or existing rural partnership. To qualify for disclosable interest holder, without license (including down payments) or this exception, an applicant must be a having to attribute the disclosable has ever been delinquent on any non-tax interest holder’s subscribers, so long as rural partnership providing service as of debt owed to any Federal agency, the disclosable interest holder is July 16, 2015, and each member of the subject to the exclusions described independently eligible for a rural rural partnership must individually below. For purposes of making these service provider credit and the use have fewer than 250,000 combined certifications, the term ‘‘controlling agreement is otherwise permissible wireless, wireline, broadband, and cable interest’’ is defined in section under the Commission’s existing rules. subscribers. Because each member of 1.2105(a)(4)(i) of the Commission rules. If applicable, the applicant must attach the rural partnership must individually 90. Under the Commission’s rule to its FCC Form 175 any additional qualify for the bidding credit, by regarding applications by former information as may be required to definition, a partnership that includes a defaulters, an applicant is considered a indicate any license (or license area) nationwide provider as a member will ‘‘former defaulter’’ or a ‘‘former that may be subject to this attribution not be eligible for the benefit. delinquent’’ when, as of the FCC Form 175 deadline, the applicant or any of its rule or to demonstrate its eligibility for 88. Finally, a consortium of small controlling interests has defaulted on the exception from this attribution rule. businesses or rural service providers any Commission construction permit or Consistent with the Commission’s may seek an exception from the limited information procedures, the license or has been delinquent on any Commission’s attribution rules. Under non-tax debt owed to any Federal Commission intends to withhold from the Commission’s rules, a consortium of public disclosure all information agency, but has since remedied all such small businesses or rural service defaults and cured all of the outstanding contained in any such attachments until providers is a conglomerate organization after the close of Auction 110. non-tax delinquencies. For purposes of composed of two or more entities, each the certification under section c. Exceptions From Attribution Rules for of which individually satisfies the 1.2105(a)(2)(xii), the applicant may Small Businesses and Rural Service definition of small business or rural exclude from consideration any cured Providers service provider. A consortium must default on a Commission construction 85. Applicants claiming designated provide additional information for each permit or license or cured delinquency entity benefits may be eligible for member demonstrating each member’s on a non-tax debt owed to a Federal certain exceptions from the eligibility for the claimed bidding credit agency for which any of the following Commission’s attribution rules. For in order to show that the applicant criteria are met: (1) The notice of the example, in calculating an applicant’s satisfies the eligibility criteria for the final payment deadline or delinquency gross revenues under the controlling bidding credit. The gross revenue or was received more than seven years interest standard, the Commission will subscriber information of each before the FCC Form 175 filing not attribute to the applicant the consortium member will not be deadline, (2) the default or delinquency personal net worth, including personal aggregated for purposes of determining amounted to less than $100,000, (3) the income, of its officers and directors. the consortium’s eligibility for the default or delinquency was paid within However, to the extent that the officers claimed bidding credit. This two quarters (i.e., six months) after and directors of the applicant are information must be provided, however, receiving the notice of the final payment controlling interest holders of other to ensure that each consortium member deadline or delinquency, or (4) the entities, the gross revenues of those qualifies for the bidding credit sought default or delinquency was the subject entities will be attributed to the by the consortium. of a legal or arbitration proceeding and

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was cured upon resolution of the Moreover, a prospective applicant in 2. Duty To Maintain Accuracy and proceeding. With respect to the first Auction 110 should note that any long- Completeness of FCC Form 175 exclusion, notice to a debtor may form applications filed after the close of 96. Pursuant to section 1.65 of the include notice of a final payment bidding will be reviewed for compliance Commission’s rules, each applicant has deadline or notice of delinquency and with the Commission’s red light rule, a continuing obligation to maintain the may be express or implied depending and such review may result in the accuracy and completeness of on the origin of any Federal non-tax dismissal of a winning bidder’s long- information furnished in a pending debt giving rise to a default or form application. OEA and WTB application, including a pending delinquency. Additionally, for the third encourage each applicant to carefully application to participate in Auction exclusion, the date of receipt of the review all records and other available 110. Consistent with the requirements notice of a final default deadline or Federal agency databases and for spectrum auctions, an applicant for delinquency by the intended party or Auction 110 must furnish additional or debtor will be used for purposes of information sources to determine corrected information to the verifying receipt of notice. whether the applicant, or any of its 91. In addition to the Auction 110 affiliates, or any of its controlling Commission within five business days Procedures Public Notice, applicants are interests, or any of the affiliates of its after a significant occurrence, or amend encouraged to review previous guidance controlling interests, owes or was ever its FCC Form 175 no more than five on default and delinquency disclosure delinquent in the payment of non-tax business days after the applicant requirements in the context of the debt owed to any Federal agency. becomes aware of the need for the auction short-form application process. amendment. An applicant is obligated J. Optional Applicant Status Parties are also encouraged to consult to amend its pending application even with Auctions Division staff if they have Identification if a reported change may result in the any questions about default and dismissal of the application because it is 94. Applicants owned by members of subsequently determined to be a major delinquency disclosure requirements. minority groups and/or women, as 92. The Commission considers modification. defined in section 1.2110(c)(3), and outstanding debts owed to the United rural telephone companies, as defined 3. Modifying an FCC Form 175 States Government, in any amount, to be a serious matter. The Commission has in section 1.2110(c)(4), may identify 97. As noted above, a party seeking to previously adopted rules, including a themselves regarding this status in participate in Auction 110 must file an provision referred to as the ‘‘red light filling out their FCC Form 175 FCC Form 175 electronically via the rule,’’ that implement its obligations applications. This applicant status FCC’s Auction Application System. under the Debt Collection Improvement information is collected for statistical During the initial filing window, an Act of 1996, which governs the purposes only and assists the applicant will be able to make any collection of debts owed to the United Commission in monitoring the necessary modifications to its FCC Form States. Under the red light rule, participation of various groups in its 175 in the Auction Application System. applications and other requests for auctions. An applicant that has certified and benefits filed by parties that have submitted its FCC Form 175 before the outstanding debts owed to the K. Modifications to FCC Form 175 close of the initial filing window may Commission will not be processed. 1. Only Minor Modifications Allowed continue to make modifications as often When adopting that rule, the as necessary until the close of that Commission explicitly declared, 95. After the initial FCC Form 175 window; however, the applicant must however, that its competitive bidding filing deadline, an Auction 110 re-certify and re-submit its FCC Form rules are not affected by the red-light applicant will be permitted to make 175 before the close of the initial filing rule. As a consequence, the only minor changes to its application window to confirm and effect its latest Commission’s adoption of the red light consistent with the Commission’s rules. application changes. After each rule does not alter the applicability of Examples of minor changes include the submission, a confirmation page will be any of its competitive bidding rules, deletion or addition of authorized displayed stating the submission time including the provisions and bidders (to a maximum of three) and the and submission date. certifications of sections 1.2105 and revision of addresses and telephone 98. An applicant will also be allowed to modify its FCC Form 175 in the 1.2106, with regard to current and numbers of the applicant, its Auction Application System, except for former defaults or delinquencies. responsible party, and its contact certain fields, during the resubmission 93. OEA and WTB remind each person. Major modification to an FCC applicant, however, that any indication filing window and after the release of Form 175 (e.g., change of PEA selection, in the Commission’s Red Light Display the public notice announcing the certain changes in ownership that System, which provides information qualified bidders for an auction. During regarding debts currently owed to the would constitute an assignment or these times, if an applicant needs to Commission, may not be determinative transfer of control of the applicant, make permissible minor changes to its of an auction applicant’s ability to change in the required certifications, FCC Form 175 or must make changes in comply with the default and change in applicant’s legal classification order to maintain the accuracy and delinquency disclosure requirements of that results in a change in control, or completeness of its application pursuant section 1.2105. Thus, while the red light change in claimed eligibility for a higher to sections 1.65 and 1.2105(b)(4), then it rule ultimately may prevent the percentage of bidding credit) will not be must make the change(s) in the Auction processing of long-form applications by permitted after the initial FCC Form 175 Application System and re-certify and auction winners, an auction applicant’s filing deadline. If an amendment re-submit its application to confirm and lack of current ‘‘red light’’ status is not reporting changes is a ‘‘major effect the change(s). necessarily determinative of its amendment,’’ as described in section 99. An applicant’s ability to modify eligibility to participate in an auction 1.2105(b)(2), the major amendment will its FCC Form 175 in the Auction (or whether it may be subject to an not be accepted and may result in the Application System will be limited increased upfront payment obligation). dismissal of the application. between the closing of the initial filing

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window and the opening of the of the applicant with authority to bind constitute a guarantee of business application resubmission filing window, the applicant. Applicants should note success. and between the closing of the that submission of any such amendment 105. An applicant should perform its resubmission filing window and the or related statement of fact constitutes a due diligence research and analysis release of the public notice announcing representation by the person certifying before proceeding, as it would with any the qualified bidders for an auction. that he or she is an authorized new business venture. In particular, During these periods, an applicant will representative with such authority and OEA and WTB encourage each potential be able to view its submitted that the contents of the amendment or bidder to perform technical analyses application, but will be permitted to statement of fact are true and correct. and/or refresh its previous analyses to modify only the applicant’s address, 102. Applicants must not submit assure itself that, should it become a responsible party address, and contact application-specific material through winning bidder for any Auction 110 information (e.g., name, address, the Commission’s Electronic Comment license, it will be able to build and telephone number, etc.) in the Auction Filing System. Further, as discussed operate facilities that will fully comply Application System. An applicant will above, parties submitting information with all applicable technical and legal not be able to modify any other pages related to their applications should use requirements. OEA and WTB urge each of the FCC Form 175 in the Auction caution to ensure that their submissions applicant to inspect any prospective Application System during these do not contain confidential information sites for communications facilities periods. If, during these periods, an or communicate information that would located in, or near, the geographic area applicant needs to make other violate section 1.2105(c) or the limited for which it plans to bid, confirm the permissible minor changes to its FCC information procedures adopted for availability of such sites, and to Form 175, or changes to maintain the Auction 110. An applicant seeking to familiarize itself with the Commission’s accuracy and completeness of its submit, outside of the Auction rules regarding the National application pursuant to sections 1.65 Application System, information that Environmental Policy Act (NEPA), the and 1.2105(b)(4), then the applicant might reflect non-public information, National Historic Preservation Act must submit a letter briefly such as an applicant’s PEA selection(s), (NHPA), and other environmental summarizing the changes to its FCC upfront payment amount, or bidding statutes. Form 175 via email to auction110@ eligibility, should consider including in 106. OEA and WTB also encourage fcc.gov. The email summarizing the its email a request that the filing or each applicant in Auction 110 to changes must include a subject line portions of the filing be withheld from continue to conduct its own research referring to Auction 110 and the name public inspection until the end of the throughout the auction in order to of the applicant, for example, ‘‘Re: prohibition on certain communications determine the existence of pending or Changes to Auction 110 Auction pursuant to section 1.2105(c). future administrative or judicial Application of XYZ Corp.’’ Any 103. Questions about FCC Form 175 proceedings that might affect its attachments to the email must be amendments should be directed to the decision on continued participation in ® ® formatted as Adobe Acrobat (PDF) or Auctions Division at (202) 418–0660. the auction. Lockheed Martin Microsoft® Word documents. An Corporation has filed a request for applicant that submits its changes in III. Preparing for Bidding in Auction waiver of certain Commission rules that this manner must subsequently modify, 110 is currently pending before the certify, and submit its FCC Form 175 A. Due Diligence Commission. Additionally, three application(s) electronically in the Petitions for Reconsideration of the 3.45 Auction Application System once it is 104. OEA and WTB remind each GHz Second Report and Order are again open and available to applicants. potential bidder that it is solely currently pending before the 100. Applicants should also note that responsible for investigating and Commission. If the Commission acts on even at times when the Auction evaluating all technical and marketplace any of these pending matters prior to the Application System is open and factors that may have a bearing on the auction, we will provide updated available to applicants, the system will value of the licenses that it is seeking in information for potential bidders as not allow an applicant to make certain Auction 110 and that it is required to necessary. Each applicant is responsible other permissible changes itself (e.g., certify, under penalty of perjury, that it for assessing the likelihood of the correcting a misstatement of the has read the Auction 110 Procedures various possible outcomes and for applicant’s legal classification, name, or Public Notice and has familiarized itself considering the potential impact on certifying official). If an applicant needs with the auction procedures and the licenses available in an auction. The to make a permissible minor change of service rules for the 3.45–3.55 GHz due diligence considerations mentioned this nature, then it must submit a band. The Commission makes no in the Auction 110 Procedures Public written request by email to the Auctions representations or warranties about the Notice do not constitute an exhaustive Division Chief, via [email protected] use of this spectrum or these licenses for list of steps that should be undertaken requesting that the Commission particular services. Each applicant prior to participating in Auction 110. As manually make the change on the should be aware that a Commission always, the burden is on the potential applicant’s behalf. Once Commission auction represents an opportunity to bidder to determine how much research staff has informed the applicant that the become a Commission licensee, subject to undertake, depending upon the change has been made in the Auction to certain conditions and regulations. specific facts and circumstances related Application System, the applicant must This includes the established authority to its interests. For example, applicants then re-certify and re-submit its FCC of the Commission to alter the terms of should pay particular attention to the Form 175 in the Auction Application existing licenses by rulemaking, which framework adopted in the 3.45 GHz System to confirm and effect the is equally applicable to licenses Second Report and Order that requires change(s). awarded by auction. A Commission new flexible-use licensees to reimburse 101. As with filing the FCC Form 175, auction does not constitute an secondary, non-federal radiolocation any amendment(s) to the application endorsement by the Commission of any operators for the relocation costs and related statements of fact must be particular service, technology, or associated with their transitions into the certified by an authorized representative product, nor does a Commission license 2.9–3.0 GHz band and cooperative

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sharing requirements for certain applicant should follow closely releases 227 for the duration of time of any such licenses. from the Commission concerning these grant. 107. Applicants in Auction 110 issues and consider carefully the c. Relocation of Secondary Non-Federal should carefully consider the impact of technical and economic implications for Radiolocation Operations the aggregation limit in the 3.45 GHz commercial use of the 3.45–3.55 GHz Service, discussed further in Section band. 113. In addition to the federal users III.B.4, below. In particular, applicants operating in the 3.45–3.55 GHz band, a. Cooperative Sharing in the 3.45–3.55 should consider whether any of their the 3.3–3.55 GHz band is currently used GHz Band own attributable interest holders have by secondary non-federal radiolocation permissible overlapping interests in 111. The 3.45–3.55 GHz band will licensees that will be relocated to the another applicant that could further operate using a cooperative sharing 2.9–3.0 GHz band no later than 180 days limit the number of licenses that each framework under which existing federal after the flexible-use licenses won in applicant may hold in a given PEA. For users are prohibited from causing Auction 110 are granted. In order to example, a single individual or entity harmful interference to non-federal facilitate the expeditious clearing of the may be permitted to hold a non- operations, except in limited 3.3–3.55 GHz band, in the 3.45 GHz controlling interest of 10% or more in circumstances and in locations where Second Report and Order, the multiple applicants, but the combined current incumbent federal systems will Commission adopted a requirement that holdings of those applicants in any PEA remain indefinitely in the band. Under licensees in the new 3.45 GHz Service reimburse the current 3.3–3.55 licensees may not exceed the four-license the following circumstances, non- for their reasonable costs related to the aggregation limit. federal systems are not entitled to relocation of their operations to the 2.9– 108. Applicants are solely responsible protection against harmful interference 3.0 GHz band. Auction 110 winning for identifying associated risks and for from federal operations (and limited bidders will be required to pay these investigating and evaluating the degree restrictions may be placed on non- reimbursement costs in addition to their to which such matters may affect their federal operations); (1) in ‘‘Cooperative winning bid amounts. For additional ability to bid on, otherwise acquire, or Planning Areas’’ identified by the DoD information about cost-sharing and make use of the licenses available in in which it anticipates that federal reimbursement procedures related to the Auction 110. Each potential bidder is operations will continue after the responsible for undertaking research to licenses offered in Auction 110, assignment of flexible use licenses in potential bidders should review ensure that any licenses won in the the band; and (2) in ‘‘Periodic Use auction will be suitable for its business carefully the 3.45 GHz Second Report Areas’’ that overlap with certain and Order. plans and needs. Each potential bidder Cooperative Planning Areas, in which must undertake its own assessment of the DoD will need episodic access to all d. Commercial Spectrum Enhancement the relevance and importance of or a portion of the band in specific, Act/Spectrum Act Requirements and information gathered as part of its due limited geographic areas. Cooperative Aggregate Reserve Price diligence efforts. Planning Areas and Periodic Use Areas 114. The spectrum in the 3.45–3.55 109. The Commission makes no are coordination areas, rather than GHz band is covered by a Congressional representations or guarantees regarding exclusion areas, meaning that mandate that requires auction proceeds the accuracy or completeness of commercial operations within their to be used to fund the estimated information in its databases or any boundaries are not precluded. Under relocation or sharing costs of incumbent third-party databases, including, for this framework, incumbent federal federal entities. In 2004, the Commercial example, court docketing systems. To operations and new flexible use Spectrum Enhancement Act (CSEA) the extent the Commission’s databases operations must coordinate with each established a Spectrum Relocation Fund may not include all information deemed other to facilitate shared use of the band (SRF) to reimburse eligible federal necessary or desirable by an applicant, in these specified areas and during agencies operating on certain it must obtain or verify such specified time periods as described in frequencies that have been reallocated information from independent sources the 3.45 GHz Second Report and Order. from federal to non-federal use for the or assume the risk of any b. AIA’s Petition for Reconsideration cost of relocating their operations. The incompleteness or inaccuracy in said CSEA, as amended by the Spectrum Act, databases. Furthermore, the and Lockheed Martin Corporation’s Waiver Request requires that the total cash proceeds Commission makes no representations from any auction of eligible frequencies or guarantees regarding the accuracy or 112. We note that one of the pending must equal at least 110% of the completeness of information that has petitions for reconsideration, filed by estimated relocation or sharing costs been provided by incumbent licensees the Aerospace Industries Association, provided to the Commission by NTIA, and incorporated into its databases. seeks adoption of a coordination and it prohibits the Commission from B. Licensing Considerations framework for certain existing federal concluding any auction of eligible contractor facilities and that Lockheed frequencies that falls short of this 1. Transition of Incumbent Operations Martin Corporation has filed a request amount. The Commission’s rules 110. Potential applicants in Auction for waiver of certain Commission rules therefore require that the establishment 110 should consider carefully the across the lower 75 megahertz of the of a reserve price in order to meet the process for transitioning incumbent 3.45–3.55 GHz Band related to its CSEA’s requirement that Auction 110’s Federal and non-Federal radiolocation Experimental Radio Service licenses total cash proceeds amount to at least and amateur operations out of the 3.45– and operations between midnight and 110% of the NTIA’s estimate of the 3.55 GHz band and to the cooperative 8:00 a.m. ET. Potential bidders should relevant relocation or sharing costs. sharing requirements within the band be aware that if relief substantially 115. NTIA provides the Commission when developing business plans, similar to that sought by Lockheed were with an estimate of eligible federal assessing market conditions, and granted, it would affect coordination entities’ relocation or sharing costs and evaluating the availability of equipment requirements and spectrum use in the timelines for such relocation or for 3.45 GHz Service operations. Each blocks A through H in PEAs 41, 44, and sharing pursuant to the requirements of

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the CSEA. On January 14, 2021, NTIA the clock phase of bidding. However, can be agreed to, operations in the 3.45– provided to the Commission an estimate OEA will estimate whether the reserve 3.55 GHz band must not cause harmful of $13,432,140,300 for the relocation or is met during the clock phase by interference across the border, sharing costs of the incumbent Federal assuming conservatively that for a consistent with the terms of the entities currently operating in the 3.45– category in a PEA with excess demand, agreements currently in force. 3.55 GHz band. Accordingly, for blocks will be won by the bidders with 3. Environmental Review Requirements Auction 110, OEA and WTB establish a the highest bidding credit percentages, single aggregate reserve price to ensure to the extent that such bidders still 123. Licensees must comply with the that total cash proceeds from the demand blocks in that category in that Commission’s rules for environmental auction equal at least $14,775,354,330, PEA. In order to make bidders aware of review under the NEPA, the NHPA, and or 110% of NTIA’s estimate. whether the reserve is likely to be met other environmental statutes. Licensees 116. OEA and WTB adopt procedures while they are still bidding in the clock and other applicants that propose to that have been used in past Commission phase, OEA and will indicate on the build certain types of communications auctions to determine whether the Public Reporting System (PRS) whether facilities for licensed service must reserve price is met in Auction 110. estimated total cash proceeds based on follow Commission procedures Although total cash proceeds from the bids in the most recently completed implementing obligations under NEPA Auction 110 will not be known round would satisfy the reserve. If the and NHPA prior to constructing the precisely before the conclusion of the reserve has not yet been met, OEA will facilities. Under NEPA, a licensee or auction, these procedures will provide a make available only to bidders applicant must assess if certain careful, conservative estimate of information on the shortfall between the environmentally sensitive conditions whether total cash proceeds meet the reserve and the estimated total cash specified in the Commission’s rules are reserve price after each bidding round proceeds, rounded up to the nearest relevant to the proposed facilities, and in the clock phase. million. prepare an environmental assessment 117. As in many services, the These procedures are designed to when applicable. If an environmental Commission has established for this avoid a potential situation where the assessment is required, then facilities auction bidding credits for small reserve price is assumed to be met, but, may not be constructed until business and rural service providers. when bidding credits are considered, environmental processing is completed. Winning bidders claiming such credits final net winning bids later prove Under NHPA, a licensee or applicant may pay less than the amount of their insufficient. For a category in a PEA must follow the procedures in section winning bids for any licenses won. In without excess demand, the 1.1320 of the Commission’s rules, the the CSEA/Part 1 Declaratory Ruling, the requirement will be evaluated based on Nationwide Programmatic Agreement Commission determined that ‘‘total cash a true calculation of net revenue after for Collocation of Wireless Antennas proceeds’’ for purposes of meeting the bid processing, rather than on the and the Nationwide Programmatic CSEA’s requirement means winning estimate, since information on how to Agreement Regarding the Section 106 bids net of any applicable bidding credit apply bidding credits precisely will be National Historic Preservation Act discounts at the end of bidding. Thus, available in that case. Review Process. Compliance with whether the CSEA’s total cash proceeds 120. These procedures are designed to section 106 of the NHPA requires tribal requirement has been met depends on avoid a potential situation where the consultation, and if construction of the whether winning bids, net of any reserve price is assumed to be met, but, communications facilities would have applicable bidding credit discounts, when bidding credits are considered, adverse effects on historic or tribally equal, in aggregate, at least 110% of final net winning bids later prove significant properties, an environmental estimated relocation costs. insufficient. For a category in a PEA assessment must be prepared. 118. As in prior Commission auctions, without excess demand, the 4. Spectrum Aggregation Limit OEA will assess whether the reserve requirement will be evaluated based on price is met—whether the auction will a true calculation of net revenue after 124. In the 3.45 GHz Second Report generate sufficient total cash proceeds— bid processing, rather than on the and Order, the Commission adopted a based on bids in the clock phase of the estimate, since information on how to spectrum aggregation limit for flexible- auction and not the assignment phase. apply bidding credits precisely will be use licenses in the 3.45 GHz Service that Total cash proceeds from assignment available in that case. allows any entity to hold a maximum of phase payments are expected to be 40 megahertz (i.e., four blocks out of small relative to those from the clock 2. International Coordination ten) in any PEA at any point in time for phase and therefore less likely to 121. Potential bidders seeking four years post-auction. For purposes of contribute significantly to meeting the licenses for geographic areas adjacent to spectrum attribution to a particular reserve price. Given that assignment the Canadian and Mexican borders entity, all controlling interests and non- phase payments will be determined should be aware that the use of the 3.45 controlling interests of 10% or more, using a second-price rule, an individual GHz Service frequencies they acquire in including institutional investors and bidder will have little ability to boost Auction 110 are subject to current and asset management companies, are net winning bids in the assignment future agreements with the governments attributable. In addition, interests of less phase in order to meet the reserve price. of Canada and Mexico. than 10% are attributable if the interest OEA and WTB do not wish to require 122. The Commission routinely works confers de facto control, including but bidders or Commission staff to invest with the United States Department of not limited to partnership and other the additional time in the assignment State and Canadian and Mexican ownership interests and any stock phase if ultimately no licenses will be government officials to ensure the interest in a licensee. assigned. efficient use of the spectrum as well as 125. Consistent with this limit on the 119. Whether winning bidders in the interference-free operations in the number of blocks that a single entity can clock phase claim any bidding credits border areas near Canada and Mexico. hold in any single PEA, the bidding that may reduce total cash proceeds to Until such time as any adjusted system will limit to four the number of less than gross winning bids only can be agreements, as needed, between the blocks that a bidder can demand in any determined with certainty at the close of United States, Mexico, and/or Canada given PEA at any point in the auction.

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Therefore, in each bidding round, a formats, followed by an online bidding completing, and viewing the FCC Form bidder will have the opportunity to bid procedures tutorial. OEA and WTB 175 is provided in the FCC Form 175 for a total of up to four blocks of recognize the importance of these Instructions. Applicants requiring spectrum per PEA. This spectrum materials to applicants’ and bidders’ technical assistance should contact FCC aggregation limit will apply across both comprehension of the bidding Auctions Technical Support at (877) categories in PEAs that contain Cat1 and procedures adopted herein. 480–3201, option nine; (202) 414–1250; Cat2 blocks. As a result, no single entity Accordingly, the educational materials or (202) 414–1255 (text telephone will be permitted to bid on, for example, shall be released as soon as reasonably (TTY)); hours of service are Monday two Cat1 blocks and three Cat2 blocks possible to provide potential applicants through Friday, from 8 a.m. to 6 p.m. within a single PEA. An aggregation and bidders with time to understand ET. In order to provide better service to limit of four blocks furthers the them and ask questions before bidding the public, all calls to Technical Commission’s interest in promoting begins. Support are recorded. greater diversity in participation in the 129. OEA and WTB believe that 3.45 GHz Service by ensuring that, if parties interested in participating in E. Application Processing and Minor licenses for all blocks in a PEA are Auction 110 will find the interactive, Modifications awarded, there will be at least three online tutorials an efficient and effective 1. Public Notice of Applicants’ Initial winning bidders in the PEA. way to further their understanding of Application Status and Opportunity for 126. The bidding system will not, the application and bidding processes. Minor Modifications however, prevent an entity from bidding The online tutorials will allow viewers on more licenses than it may otherwise to navigate the presentation outline, 133. After the deadline for filing be permitted to hold under the relevant review written notes, and listen to audio auction applications, the Commission attribution rules. Applicants should of the notes. Additional features of this will process all timely submitted therefore encouraged to conduct the web-based tool include links to auction- applications to determine whether each necessary due diligence prior to the specific Commission releases, email applicant has complied with the short-form application deadline to links for contacting Commission staff, application requirements and provided determine whether any of its and screen shots of the online all information concerning its attributable interest holders have application and bidding systems. The qualifications for bidding. OEA will attributable interests in other potential online tutorials will be accessible in the issue a public notice with applicants’ auction participants, which may limit Education section of the Auction 110 initial application status, identifying: (1) each applicant’s ability to hold up to website at www.fcc.gov/auction/110. Those that are complete; and (2) those four licenses in a single PEA. Bidders Once posted, the tutorials will remain that are incomplete or deficient because are reminded, however, that section continuously accessible. of defects that may be corrected. The 1.2105(c) of the competitive bidding D. Short-Form Applications: Due Before public notice will include the deadline rules, 47 CFR 1.2105(c), prohibits 6 p.m. ET on July 21, 2021 for resubmitting corrected applications certain communications between and an electronic copy of the public 130. In order to be eligible to bid in auction participants beginning at the notice will be sent by email to the Auction 110, an applicant must first short-form application deadline and contact address listed in the FCC Form follow the procedures to submit a short- continuing until the deadline for 175 for each applicant. In addition, each form application (FCC Form 175) winning bidders to make down applicant with an incomplete electronically via the Auction payments. application will be sent information on Application System, following the the nature of the deficiencies in its C. Bidder Education instructions set forth in the FCC Form application, along with the name and 127. Before the opening of the short- 175 Instructions. The short-form contact information of a Commission form filing window for Auction 110, application will become available with staff member who can answer questions detailed educational information will be the opening of the initial filing window specific to the application. provided in various formats to would-be and must be submitted prior to 6 p.m. participants on the Auction 110 web ET on July 21, 2021. Late applications 134. After the initial application filing page. Specifically, OEA will provide will not be accepted. No application fee deadline on July 21, 2021, applicants various materials on the pre-bidding is required for short-form applications. can make only minor modifications to processes in advance of the opening of 131. Applications may be filed at any their applications. Major modifications the short-form application window, time beginning at noon ET on July 8, (e.g., change of PEA selection, certain beginning with the release of step-by- 2021, until the filing window closes at changes in ownership that would step instructions for completing the FCC 6 p.m. ET on July 21, 2021. Applicants constitute an assignment or transfer of Form 175, which OEA will make are strongly encouraged to file early and control of the applicant, change in the available in the Education section of the are responsible for allowing adequate required certifications, change in Auction 110 website at www.fcc.gov/ time for filing their applications. There applicant’s legal classification that auction/110. In addition, OEA will are no limits or restrictions on the results in a change in control, or change provide an online application number of times an application can be in claimed eligibility for a higher procedures tutorial for the auction, updated or amended until the initial percentage of bidding credit) will not be covering information on pre-bidding filing deadline on July 21, 2021. permitted. After the deadline for preparation, completing short-form 132. An applicant must always click resubmitting corrected applications, an applications, and the application review on the CERTIFY & SUBMIT button on applicant will have no further process. the ‘‘Certify & Submit’’ screen to opportunity to cure any deficiencies in 128. In advance of the start of the successfully submit its FCC Form 175 its application or provide any additional mock auction, OEA will provide and any modifications; otherwise the information that may affect Commission educational materials on the bidding application or changes to the staff’s ultimate determination of procedures for Auction 110, beginning application will not be received or whether and to what extent the with the release of a user guide for the reviewed by Commission staff. applicant is qualified to participate in bidding system and bidding system file Additional information about accessing, Auction 110.

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135. Commission staff will applicants should discuss arrangements difficulties in making payments by wire communicate only with an applicant’s (including bank closing schedules and transfer. Each applicant also is contact person or certifying official, as other specific bank wire transfer responsible for obtaining confirmation designated on the applicant’s FCC Form requirements, such as an in-person from its financial institution that its 175, unless the applicant’s certifying written request before a specified time wire transfer to the U.S. Treasury was official or contact person notifies of day) with their bankers several days successful and from Commission staff Commission staff in writing that another before they plan to make the wire that its upfront payment was timely representative is authorized to speak on transfer, and must allow sufficient time received and that it was deposited into the applicant’s behalf. Authorizations for the transfer to be initiated and the proper account. As a regulatory may be sent by email to auction110@ completed before the deadline. The requirement, the U.S. Treasury screens fcc.gov. following information will be needed: all payments from all financial ABA Routing Number: 021030004. institutions before deposits are made 2. Public Notice of Applicants’ Final Receiving Bank: TREAS NYC, 33 available to specified accounts. If wires Application Status After Upfront Liberty Street, New York, NY 10045. are suspended, the U.S. Treasury may Payment Deadline Beneficiary: FCC, 45 L Street NE, 3rd direct questions regarding any transfer 136. After Commission staff reviews Floor, Washington, DC 20554. to the financial institution initiating the resubmitted applications and upfront Account Number: 827000001001. wire. Each applicant must take care to payments, OEA will release a public Originating Bank Information (OBI assure that any questions directed to its notice identifying applicants that have Field): (Skip one space between each financial institution(s) are addressed become qualified bidders for the information item). promptly. To receive confirmation from auction. A Qualified Bidders Public ‘‘AUCTIONPAY’’ Commission staff, contact Scott Notice will be issued before bidding in Applicant FCC Registration Number Radcliffe of the Office of Managing the auction begins. Qualified bidders are (FRN): (Use the same FRN as used on Director’s Revenue & Receivables those applicants with submitted FCC the applicant’s FCC Form 159, block Operations Group/Auctions at (202) Form 175 applications that are deemed 21). 418–7518 or Theresa Meeks at (202) timely filed and complete and that have Payment Type Code: (Same as FCC 418–2945. made a sufficient upfront payment. Form 159, block 24A: ‘‘U110’’). 142. Please note the following F. Upfront Payments Note: The beneficiary account number information regarding upfront payments: 137. In order to be eligible to bid in (BNF Account Number) is specific to the upfront payments for Auction 110. Do not • All payments must be made in U.S. Auction 110, a sufficient upfront use a BNF Account Number from a previous dollars. payment and a complete and accurate auction. • FCC Remittance Advice Form (FCC All payments must be made by wire 140. At least one hour before placing transfer. Form 159, Revised 2/03) must be • submitted before 6 p.m. ET on the order for the wire transfer (but on Upfront payments for Auction 110 September 2, 2021. After completing its the same business day), applicants must go to an account number different from short-form application, an applicant print and fax a completed FCC Form the accounts used in previous FCC will have access to an electronic pre- 159 (Revised 2/03) to the FCC at (202) auctions. filled version of the FCC Form 159. An 418–2843. Alternatively, the completed 143. Failure to deliver a sufficient accurate and complete FCC Form 159 form can be scanned and sent as an upfront payment as instructed by the must accompany each payment. Proper attachment to an email to upfront payment deadline will result in completion of this form is critical to [email protected]. On the fax dismissal of the short-form application ensuring correct crediting of upfront cover sheet or in the email subject and disqualification from participation payments. Payers using the pre-filled header, write ‘‘Wire Transfer—Auction in the auction. FCC Form 159 are responsible for Payment for Auction 110’’. To meet the 2. Completing and Submitting FCC ensuring that all the information on the upfront payment deadline, an Form 159 form, including payment amounts, is applicant’s payment must be credited to accurate. Instructions for completing the Commission’s account for Auction 144. The following information FCC Form 159 for Auction 110 are 110 before the deadline. supplements the standard instructions provided below. 141. Each applicant is responsible for for FCC Form 159 (Revised 2/03) and is ensuring timely submission of its provided to help ensure correct 1. Making Upfront Payments by Wire upfront payment and for timely filing of completion of FCC Form 159 for upfront Transfer for Auction 110 an accurate and complete FCC Form payments for Auction 110. Applicants 138. Upfront payments for Auction 159. An applicant should coordinate need to complete FCC Form 159 110 must be wired to, and will be with its financial institution well ahead carefully, because: deposited in, the U.S. Treasury. of the due date regarding its wire • Mistakes may affect bidding 139. Wire transfer payments for transfer and allow sufficient time for the eligibility; and Auction 110 must be received before 6 transfer to be initiated and completed • Lack of consistency between p.m. ET on September 22, 2021. An prior to the deadline. Among other information provided in FCC Form 159 applicant must initiate the wire transfer things, OEA and WTB caution each (Revised 2/03), FCC Form 175, long- through its bank, authorizing the bank applicant to plan ahead regarding any form application (FCC Form 601), and to wire funds from the applicants potential delays in its or its financial correspondence about an application account to the proper account in the institution’s ability to complete wire may cause processing delays. U.S. Treasury. No other payment transfers due to the COVID–19 145. Therefore, appropriate cross- method is acceptable. The Commission pandemic. The Commission repeatedly references between the FCC Form 159 will not accept checks, credit cards, or has cautioned auction participants Remittance Advice and the short-form automated clearing house (ACH) about the importance of planning ahead application (FCC Form 175) are payments. To avoid untimely payments, to prepare for unforeseen last-minute described below.

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Block number Required information

1 ...... LOCKBOX #—Leave Blank. 2 ...... Payer Name—Enter the name of the person or company making the payment. If the applicant itself is the payer, this entry would be the same name as in FCC Form 175. 3 ...... Total Amount Paid—Enter the amount of the upfront payment associated with the FCC Form 159 (Revised 2/03). 4–8 ...... Street Address, City, State, ZIP Code—Enter the street mailing address (not Post Office box number) where mail should be sent to the payer. If the applicant is the payer, these entries would be the same as FCC Form 175 from the Applicant Infor- mation section. 9 ...... Daytime Telephone Number—Enter the telephone number of a person knowledgeable about this upfront payment. 10 ...... Country Code—For addresses outside the United States, enter the appropriate postal country code (available from the Mail- ing Requirements Department of the U.S. Postal Service). 11 ...... Payer FRN—Enter the payer’s 10-digit FCC Registration Number (FRN) registered in the Commission Registration System (CORES). 21 ...... Applicant FRN (Complete only if applicant is different than payer)—Enter the applicant’s 10-digit FRN registered in CORES. 24A ...... Payment Type Code—Enter ‘‘U110’’. 25A ...... Quantity—Enter the number ‘‘1’’. 26A ...... Fee Due—Amount of Upfront Payment. 27A ...... Total Fee—Will be the same amount as 26A. 28A ...... FCC Code 1—Enter the number ‘‘110’’ (indicating Auction 110).

Notes: upfront payments based on MHz-pops, $1,000 are rounded to the nearest $100; • Do not use Remittance Advice and that the amount of the upfront and results below $1,000 are rounded to (Continuation Sheet), FCC Form 159–C, for payment submitted by an applicant will the nearest $10. The upfront payment upfront payments. • determine its initial bidding eligibility, amount per block in each PEA is set If applicant is different from the payer, the maximum number of bidding units forth in the ‘‘Attachment A’’ file on the complete blocks 13 through 21 for the applicant, using the same information shown on which a bidder may place bids in Auction 110 website at www.fcc.gov/ on FCC Form 175. Otherwise leave them any single round. In order to bid for a auction/110. blank. block, qualified bidders must have a 151. OEA and WTB also adopt the • No signature is required on FCC Form current eligibility level that meets or Commission’s proposal to assign each 159 for auction payments. exceeds the number of bidding units generic block in a PEA a specific • Since credit card payments will not be assigned to that generic block in a PEA. number of bidding units, equal to one accepted for upfront payments for an auction, At a minimum, therefore, an applicant’s bidding unit per $100 of the upfront leave Section E blank. total upfront payment must be enough payment. The number of bidding units to establish eligibility to bid on at least per block in each PEA is set forth in the 3. Upfront Payments and Bidding one block in one of the PEAs selected ‘‘Attachment A’’ file that lists the Eligibility on its FCC Form 175 for Auction 110, upfront payment amounts. The number 146. The Commission has delegated or else the applicant will not become of bidding units for one block in a given authority to OEA and WTB to determine qualified to participate in the auction. PEA is fixed, since it is based on the appropriate upfront payments for each The total upfront payment does not MHz-pops in the block, and it does not license being auctioned, taking into affect the total dollar amount the bidder change during the auction as prices account such factors as the efficiency of may bid. change. Thus, in calculating its upfront the auction process and the potential 149. In the Auction 110 Comment payment amount, an applicant must value of similar licenses. An upfront Public Notice, the Commission determine the maximum number of payment is a refundable deposit made proposed to require applicants to submit bidding units on which it may wish to by each applicant seeking to participate upfront payments based on $0.03 per bid in any single round and submit an in bidding to establish its eligibility to MHz-pop for PEAs 1–50 and $0.01 per upfront payment amount for the auction bid on licenses. Upfront payments that MHz-pop for all other PEAs, subject to covering that number of bidding units. are related to the inventory of licenses a minimum of $500. In response to In some cases, a qualified bidder’s being auctioned protect against concerns raised by commenters that maximum eligibility may be less than frivolous or insincere bidding and calculating upfront payments and the amount of its upfront payment provide the Commission with a source bidding units with a significant because the qualified bidder has either of funds from which to collect payments structural break between the top 50 previously been in default on a owed at the close of bidding. markets and markets just outside of the Commission construction permit or 147. Applicants that are former top 50 has the potential to create license or delinquent on non-tax debt defaulters must pay upfront payments distortions in bidding behavior, OEA owed to a Federal agency, or has 50% greater than non-former defaulters. and WTB will forgo the discrete break submitted an upfront payment that For purposes of classification as a in calculation amounts for large and exceeds the total amount of bidding former defaulter or a former delinquent, small markets for upfront payment and units associated with the license areas it defaults and delinquencies of the bidding unit amounts. selected on its FCC Form 175. In order applicant itself and its controlling 150. Accordingly, OEA and WTB to make this calculation, an applicant interests are included. For this purpose, adopt upfront payments for a generic should add together the bidding units the term ‘‘controlling interest’’ is block in a PEA based on $0.01 per MHz- for the number of blocks in PEAs on defined in 47 CFR 1.2105(a)(4)(i). pop for all PEAs. The results of these which it seeks to be active in any given 148. An applicant must make an calculations will be rounded using the round. Applicants should check their upfront payment sufficient to obtain Commission’s standard rounding calculations carefully, as there is no bidding eligibility on the generic blocks procedures for auctions: Results above provision for increasing a bidder’s on which it will bid. OEA and WTB $10,000 are rounded to the nearest eligibility after the upfront payment adopt the Commission’s proposal to set $1,000; results below $10,000 but above deadline.

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TABLE 1—UPFRONT PAYMENTS, BIDDING ELIGIBILITY, AND BIDDING FLEXIBILITY EXAMPLE

Upfront PEA Bidding units payment

PEA058—Bloomington, IN ...... 1,070 $107,000 PEA064—South Bend, IN ...... 950 95,000 If a bidder wishes to bid on one block in both of the above PEAs in a round, it must have selected both PEAs on its FCC Form 175 and pur- chased at least 2,020 bidding units (1,070 + 950) of bidding eligibility. If a bidder only wishes to bid on a block in one of these PEAs, but not both, purchasing 1,070 bidding units would meet the eligibility requirement for a block in either PEA. The bidder would be able to bid on a block in either PEA, but not both at the same time. If the bidder purchased only 950 bidding units, the bidder would have enough eligibility to bid for a block in PEA064 but not for one in PEA058.

152. If an applicant is a former in the registration materials or the provided to return the tokens once the defaulter, it must calculate its upfront Auction Hotline at (717) 338–2868. auction has ended. payment for the maximum amount of 158. The Commission makes no H. Remote Electronic Bidding via the generic blocks in each PEA on which it warranties whatsoever, and shall not be FCC Auction Bidding System plans to bid by multiplying the number deemed to have made any warranties, of bidding units on which it wishes to 156. Bidders will be able to with respect to the bidding system, be active by 1.5. In order to calculate the participate in Auction 110 over the including any implied warranties of number of bidding units to assign to internet using the FCC Auction Bidding merchantability or fitness for a former defaulters, the Commission will System (bidding system). During the particular purpose. In no event shall the calculate the number of bidding units a assignment phase only, bidders will Commission, or any of its officers, non-former defaulter would get for the have the option of placing bids by employees, or agents, be liable for any upfront payment received, divide that telephone through a dedicated auction damages whatsoever (including, but not number by 1.5, and round the result up bidder line. Please note that telephonic limited to, loss of business profits, to the nearest bidding unit. If a former bid assistants are required to use a script business interruption, loss of use, defaulter fails to submit a sufficient when entering bids placed by telephone. revenue, or business information, or any upfront payment to establish eligibility Telephonic bidders are therefore other direct, indirect, or consequential to bid on at least one generic block in reminded to allow sufficient time to bid damages) arising out of or relating to the a PEA, the applicant will not be eligible by placing their calls well in advance of existence, furnishing, functioning, or to participate in Auction 110. The the close of a round. The length of a call use of the bidding system. Moreover, no applicant, however, will retain its status to place a telephonic bid may vary; obligation or liability will arise out of as an applicant in Auction 110 and will please allow a minimum of 10 minutes. the Commission’s technical, remain subject to 47 CFR 1.2105(c). The toll-free telephone number for the programming, or other advice or service auction bidder line will be provided to provided in connection with the G. Auction Registration qualified bidders prior to the start of bidding system. bidding in the auction. 153. All qualified bidders for Auction 159. To the extent an issue arises with 157. Only qualified bidders are 110 are automatically registered for the the bidding system itself, the permitted to bid. Each authorized Commission will take all appropriate auction. Registration materials will be bidder must have his or her own measures to resolve such issues quickly distributed prior to the auction by ® SecurID token, which the Commission and equitably. Should an issue arise that overnight delivery. The mailing will be will provide at no charge. Each is outside the bidding system or sent only to the contact person at the ® applicant will be issued three SecurID attributable to a bidder, including, but contact address listed in the FCC Form ® tokens. A bidder cannot bid without his not limited to, a bidder’s hardware, 175 and will include the SecurID ® or her SecurID token. In order to software, or internet access problem that tokens that will be required to place access the bidding function of the prevents the bidder from submitting a bids. bidding system, bidders must be logged bid prior to the end of a round, the 154. Qualified bidders that do not in during the bidding round using the Commission shall have no obligation to ® receive this registration mailing will not passcode generated by the SecurID resolve or remediate such an issue on be able to submit bids. Therefore, any token and a personal identification behalf of the bidder. Similarly, if an qualified bidder for Auction 110 that number (PIN) created by the bidder. issue arises due to bidder error using the has not received this mailing by noon Bidders are strongly encouraged to print bidding system, the Commission shall on September 8, 2021, should call the a bid summary for each round after they have no obligation to resolve or Auctions Hotline at (717) 338–2868. have completed all their activity for that remediate such an issue on behalf of the Receipt of this registration mailing is round. For security purposes, the bidder. Accordingly, after the close of a ® critical to participating in the auction, SecurID tokens and a telephone bidding round, the results of bid and each applicant is responsible for number for bidding questions are only processing will not be altered absent ensuring it has received all the mailed to the contact person at the evidence of any failure in the bidding registration materials. contact address listed on the FCC Form system. 155. In the event that a SecurID ® 175. Each SecurID ® token is tailored to token is lost or damaged, only a person a specific auction. SecurID ® tokens I. Mock Auction who has been designated as an issued for other auctions or obtained 160. All qualified bidders will be authorized bidder, the contact person, from a source other than the FCC will eligible to participate in a mock auction or the certifying official on the not work for Auction 110. Please note for the clock phase. Only those bidders applicant’s short-form application may that the SecurID ® tokens can be that are qualified to participate in request a replacement. To request a recycled, and the Commission requests Auction 110 will be eligible to replacement, call the Auction Bidder that bidders return the tokens to the participate in the mock auction. The Line at the telephone number provided FCC. Pre-addressed envelopes will be mock auction, which will begin on

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September 30, 2021, will enable needed for the transfer of funds website (www.fcc.gov/auction/110), qualified bidders to become familiar maintained in IRA accounts. supplements the decisions in the with the bidding system and to practice • The amount of investment is less Auction 110 Procedures Public Notice. submitting bids prior to the auction. than $25,000. The Auction 110 Clock Phase Technical OEA and WTB recommend that all • The sales representative makes Guide details the adopted procedures qualified bidders, including all their verbal representations that: (a) The for the clock phase of Auction 110. The authorized bidders, participate to assure Internal Revenue Service, Federal Trade Auction 110 Assignment Phase that they can log in to the bidding Commission (FTC), Securities and Technical Guide details the adopted system and gain experience with the Exchange Commission (SEC), FCC, or procedures for the assignment phase. bidding procedures. Participating in the other government agency has approved mock auction may reduce the likelihood the investment; (b) the investment is not A. Clock Phase of a bidder making a mistake during the subject to state or federal securities 1. Clock Auction Design auction. Details regarding the mock laws; or (c) the investment will yield 168. Under the bidding procedures auction will be announced in the unrealistically high short-term profits. that OEA and WTB adopt, during the Qualified Bidders Public Notice for In addition, the offering materials often clock phase of Auction 110, bidders will Auction 110. include copies of actual FCC releases, or indicate their demands for generic 161. After the clock phase of the quotes from FCC personnel, giving the license blocks in a bidding category in auction concludes, a separate mock appearance of FCC knowledge or specific geographic areas—in this case, auction for the assignment phase will be approval of the solicitation. held for those qualified bidders that 164. Information about deceptive PEAs. There may be one or two bidding won generic blocks in the clock phase. telemarketing investment schemes is categories in a given PEA. The clock available from the FCC, as well as the auction format will proceed in a series J. Auction Delay, Suspension, or FTC and SEC. Additional sources of of rounds, with bidding being Cancellation information for potential bidders and conducted simultaneously for all 162. At any time before or during the investors may be obtained from the spectrum blocks in all PEAs available in bidding process, OEA, in conjunction following sources: the auction. During each bidding round, with WTB, may delay, suspend, or • The FCC’s Consumer Call Center at the bidding system will announce a per- cancel bidding in Auction 110 in the (888) 225–5322 or by visiting block clock price for each category in event of a natural disaster, technical www.fcc.gov/general/frauds-scams-and- each PEA. Qualified bidders will obstacle, network interruption, alerts-guides. submit, for each category and PEA for administrative or weather necessity, • the FTC at (877) FTC–HELP ((877) which they wish to bid, the number of evidence of an auction security breach 382–4357) or by visiting blocks they seek at the clock price or unlawful bidding activity, or for any www.consumer.ftc.gov/articles/0238- associated with the current round. other reason that affects the fair and investment-risks. Bidding rounds will be open for efficient conduct of competitive • the SEC at (202) 942–7040 or by predetermined periods of time. Bidders bidding. This approach has proven visiting www.sec.gov/investor. will be subject to activity and eligibility effective in resolving exigent 165. Complaints about specific rules that govern the pace at which they circumstances in previous auctions and deceptive telemarketing investment participate in the auction. OEA and WTB find no reason to depart schemes should be directed to the FTC, 169. As proposed, for each product— from it here. OEA will notify the SEC, or the National Fraud a category in a PEA—the clock price for participants of any such delay, Information Center at (202) 835–0618. a generic license block will increase from round to round if bidders indicate suspension, or cancellation by public IV. Bidding Procedures notice and/or through the bidding total demand for blocks in that product system’s announcement function. If the 166. OEA and WTB will conduct that exceeds the number of blocks bidding is delayed or suspended, then Auction 110 using an ascending clock available. The bidding rounds will OEA may, in its sole discretion, elect to auction design with two phases. The continue until, for all products, the total resume the auction starting from the first phase of the auction—the clock number of blocks that bidders demand beginning of the current round or from phase—will consist of successive clock does not exceed the supply of available some previous round, or cancel the bidding rounds in which bidders blocks. auction in its entirety. OEA and WTB indicate their demands for a number of 170. If the aggregate reserve price to emphasize that they will exercise this generic license blocks in specific satisfy the CSEA requirement has been authority at their discretion. categories and PEAs. In the second met at the time that the clock phase phase—the assignment phase—winning bidding stops, those bidders indicating K. Fraud Alert clock phase bidders will have the demand for a product at the final clock 163. As is the case with many opportunity to bid for their preferred phase price will be deemed winning business investment opportunities, combinations of frequency-specific bidders, and the auction will proceed to some unscrupulous entrepreneurs may license assignments, consistent with the assignment phase. If the reserve attempt to use Auction 110 to deceive their clock phase winnings, in a series price has not been met at the time and defraud unsuspecting investors. of sealed-bid rounds conducted by PEA bidding stops in the clock phase, the Common warning signals of fraud or, in some cases, PEA group. auction will end, and no licenses will be include the following: 167. In conjunction with WTB, OEA assigned. • The first contact is a ‘‘cold call’’ will release shortly updated technical 171. Following the clock phase, if the from a telemarketer or is made in guides that provide the mathematical reserve price has been met, the response to an inquiry prompted by a details of the adopted auction design assignment phase will offer clock phase radio or television infomercial. and algorithms for the clock and winners the opportunity to bid an • The offering materials used to assignment phases of Auction 110. The additional amount for licenses with invest in the venture appear to be information in the updated technical specific frequencies. All winning targeted at IRA funds, for example, by guides, which are available in the bidders, regardless of whether they bid including all documents and papers Education section of the Auction 110 in the assignment phase, will be

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assigned licenses for contiguous blocks to denote that for these licenses the blocks out of ten) in any PEA at any within a category in a PEA. In addition, coordination requirements in a PEA point in time for four years post-auction. if in a PEA there are one or more differ between the two categories. For Consistent with this limit on the bidders with clock phase winnings in all licenses, we caution potential number of blocks that a single entity can both categories, one of the bidders will bidders to investigate carefully the hold in any single PEA, the bidding be assigned frequency blocks that are restrictions that may apply to a given system will limit to four the number of contiguous across the two categories. PEA. In particular, we note that DoD has blocks that a bidder can demand in any created a workbook that specifically given PEA at any point in the auction. 2. Generic License Blocks in Two describes the coordination requirements Therefore, in each bidding round, a Bidding Categories for each Cooperative Planning Area and bidder will have the opportunity to bid 172. As established in the 3.45 GHz Periodic Use Area. In 334 PEAs, there for a total of up to four blocks of Second Report and Order, the 3.45–3.55 will be ten generic blocks of a single spectrum per PEA. This spectrum GHz band will be licensed in uniform Cat1 product, and in 72 PEAs, there will aggregation limit will apply across both 10-megahertz sub-blocks in each of the be two products. OEA and WTB also categories in PEAs that contain Cat1 and 406 PEAs in the contiguous United note that in the three PEAs that Cat2 blocks. As a result, no single entity States. In most PEAs, new licensees encompass the areas subject to will be permitted to bid on, for example, generally will have unrestricted use of Lockheed’s pending waiver request, the two Cat1 blocks and three Cat2 blocks all ten frequency blocks. In other areas, eight blocks A through H would be within a single PEA. More specifically, specifically in PEAs that wholly or in considered Cat1 while the two blocks I the bidding system will not permit bids part cover Cooperative Planning Areas and J would be considered Cat2 for to be submitted that, if fully applied, or Periodic Use Areas, licensees must bidding should relief substantially would result in the bidder demanding coordinate with incumbent federal similar to that sought by Lockheed be more than four blocks in the PEA. operations in the band, as established in granted. Further, the system will not fully apply the 3.45 GHz Second Report and Order. 174. This approach to determining submitted bids if doing so would result In some of the PEAs where coordination bidding categories differs somewhat in the bidder demanding more than four is required, all ten blocks will be subject from the approach the Commission has blocks in the PEA. For example, a to the same restrictions. In others, the taken in prior clock auctions, in that the requested increase in one category may restrictions may vary depending upon coordination requirements on blocks in not be applied if a requested reduction the frequency block—specifically, in a given category in a given PEA may in the other category cannot be applied some PEAs subject to coordination with differ from the requirements on the because of insufficient aggregate federal incumbents, the A through D same category of blocks in a different demand. blocks may be subject to different PEA. For example, the Cat1 blocks in 177. An aggregation limit of four restrictions than the E through J blocks. one PEA may be unrestricted while the blocks will further the Commission’s As set forth in the 3.45 GHz Second Cat1 blocks in another PEA may require interest in promoting greater diversity in Report and Order, the lower 40 some degree of coordination. Similarly, participation in the 3.45 GHz band by megahertz of the band—between 3450– the restrictions on Cat2 blocks will ensuring that, if licenses for all blocks 3490 MHz corresponding to the A likely vary from PEA to PEA. In in a PEA are awarded, there will be at through D blocks—are affected previous auctions, blocks in a given least three winning bidders in the PEA. differently than the upper 60 megahertz bidding category generally have been 3. Bidding Rounds in certain PEAs in the band. In the event subject to the same use requirements in Lockheed is granted relief substantially all PEAs, but because the restrictions in 178. As proposed, Auction 110 will similar to that sought in its waiver this auction differ so widely from PEA consist of sequential bidding rounds, request, the A through H blocks will be to PEA, that approach is not feasible. each followed by the release of round subject to different conditions than the Importantly, however, for Auction 110, results. OEA and WTB will conduct I and J blocks in the three affected PEAs. within any given PEA, the blocks within bidding simultaneously for all spectrum See Lockheed Waiver Request. a category can be considered generic, blocks in both bidding categories for all 173. Categories. The Commission and bidding in the clock phase will PEAs available in the auction. In the adopts the proposal to establish determine a single price that will apply first bidding round of Auction 110, a categories for bidding such that all the to each generic block in a category in a bidder will indicate, for each product, blocks within a category in a PEA are PEA. the number of generic license blocks it similar in terms of any requirements or 175. This approach for bidding on demands at the minimum opening bid restrictions. For the reasons proposed by generic blocks in two categories is based price. the Commission, OEA and WTB adopt on the close similarity of the blocks 179. The initial bidding schedule will bidding categories as follows: In the within each bidding category within a be announced in a public notice to be PEAs where all ten blocks are the PEA. To the extent a bidder has a released at least one week before the same—i.e., all ten generally are preference for licenses for specific start of bidding. OEA will retain the unrestricted or all ten are subject to the frequencies, the bidder may bid for its discretion to adjust the bidding same restrictions—the ten generic preferred blocks in the assignment schedule in order to foster an auction blocks will be considered Category 1, or phase. However, a bidder for a generic pace that reasonably balances speed ‘‘Cat1,’’ blocks. In the PEAs subject to block in a category will not be assured with the bidders’ need to study round coordination with federal incumbents that it will be assigned, or not be results and adjust their bidding where the restrictions differ according assigned, any particular frequency strategies. Such adjustments may to the frequency, the four blocks A block. include changes in the amount of time through D will be considered Category 176. Limit on number of blocks per for bidding rounds, the amount of time 1, or ‘‘Cat1,’’ while the six blocks E bidder. In the 3.45 GHz Second Report between rounds, or the number of through J will be considered Category 2, and Order, the Commission adopted a rounds per day, and will depend upon or ‘‘Cat2,’’ for bidding. In PEAs with two spectrum aggregation limit for flexible- bidding activity and other factors. categories, we designate certain blocks use licenses in the 3.45 GHz band of a 180. Auction 110 will be conducted as Cat1 and other blocks as Cat2 simply maximum of 40 megahertz (i.e., four over the internet. A bidder will be able

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to submit its bids using the bidding the CSEA requirement. If the reserve has units that total 90% to 100% of its system’s upload function, which allows not yet been met, each bidder will be current eligibility in the round. OEA bid files in a comma-separated values informed about the shortfall between will set the activity requirement (CSV) text format to be uploaded. The the reserve and the estimated total cash percentage initially at 95%. If the bidding system will not allow bids to be proceeds, rounded up to the nearest activity rule is met, then the bidder’s submitted unless the bidder selected the million. This shortfall information will eligibility will not change for the next PEAs on its FCC Form 175, the bidder not be publicly available during the round. If the activity rule is not met in has sufficient bidding eligibility, and auction. a round, the bidder’s eligibility will be the bids, if applied, are consistent with 185. Each bidder will have access to reduced. Bidding activity will be based the aggregation limit of 40 megahertz in additional information related to its on the bids that are applied by the FCC a PEA. own bidding and bid eligibility. auction bidding system. That is, if a 181. During each round of the Specifically, after the bids of a round bidder requests a reduction in the bidding, a bidder will also be able to have been processed, the bidding quantity of blocks it demands in a remove bids placed in the current system will inform each bidder of the product, but the bidding system cannot bidding round. If a bidder modifies its number of blocks it holds after the apply the request because demand bids for blocks in a PEA in a round, the round (its processed demand) for every would fall below the available supply, system will take the last bid submission product and its eligibility for the next then the bidder’s activity will reflect its as that bidder’s bid for the round. No round. unreduced demand. Under the bids may be withdrawn after the close 186. Limiting the availability of ascending clock auction format, the FCC of a round. Unlike an auction conducted bidding information during the auction auction bidding system will not allow a using the Commission’s simultaneous balances the Commission’s interest in bidder to reduce the quantity of blocks multiple-round auction format, there are providing bidders with sufficient it demands in an individual product if no provisionally winning bids in a clock information about the status of their the reduction would result in aggregate auction. As a result, the concept of bid own bids and the general level of demand falling below (or further below) withdrawals as used in simultaneous bidding in all areas and license the available supply of blocks in the multiple-round auctions does not apply categories to allow them to bid product. to a clock auction. confidently and effectively, while 189. OEA will retain the discretion to restricting the availability of change the activity requirement 4. Stopping Rule information that may facilitate percentage during the auction. The 182. OEA and WTB adopt a identification of bidders placing bidding system would announce any simultaneous stopping rule for Auction particular bids, which could potentially such change in advance of the round in 110, under which all blocks in all PEAs lead to undesirable strategic bidding. which it would take effect, giving will remain available for bidding until 6. Activity Requirement, Contingent bidders adequate notice to adjust their the bidding stops in every PEA. Bidding Limit, and Missing Bids bidding strategies. Specifically, bidding will close for all 190. Contingent bidding limit. blocks after the first round in which 187. Activity requirement. To ensure Because a bidder’s eligibility for the there is no excess demand in any that the auction closes within a next round is calculated based on the product. Excess demand is calculated as reasonable period of time, an activity bidder’s demands as applied by the the difference between the number of rule requires bidders to bid actively auction system during bid processing, a blocks of aggregate demand and supply. throughout the auction, rather than wait bidder’s eligibility may be reduced even Under this approach, it is not possible until late in the auction before if the bidder submitted bids with to determine in advance how long participating. For this clock auction, a activity that exceeds the required Auction 110 will last. bidder’s activity in a round for purposes activity for the round. This may occur, of the activity rule will be the sum of for example, if the bidder bids to reduce 5. Availability of Bidding Information the bidding units associated with the its demand in PEA X by two blocks 183. OEA and WTB adopt the bidder’s demands as applied by the (with 10 bidding units each) and bids to proposal to make public after each clock auction system during bid processing. increase its demand by one block (with phase bidding round, for each category Bidders are required to be active on a 20 bidding units) in PEA Y. If the in each PEA: The supply, the aggregate specific percentage (the activity bidder’s demand can only be reduced by demand, the posted price of the last requirement percentage) of their current one block in PEA X (because there is completed round, and the clock price bidding eligibility during each round of only one block of excess demand), the for the next round. The posted price of the auction. Failure to maintain the increase in PEA Y cannot be applied, the previous round is, generally, the requisite activity level will result in a and absent other bidding activity the start-of-round price if supply exceeds reduction in the bidder’s eligibility, bidder’s eligibility would be reduced. demand; the clock price of the previous possibly curtailing or eliminating the To help a bidder avoid potentially round if demand exceeds supply; or the bidder’s ability to place bids in having its eligibility reduced as a result price at which a reduction caused subsequent rounds of the auction. of submitted bids that could not be demand to equal supply. The identities 188. OEA and WTB adopt the applied during bid processing, as of bidders demanding blocks in a proposal to require that bidders proposed, OEA and WTB adopt specific category or PEA will not be maintain a fixed, high level of activity procedures to allow a bidder to submit disclosed until after Auction 110 in each round of Auction 110 in order bids with associated bidding activity concludes (i.e., after the close of to maintain bidding eligibility. greater than its current bidding bidding). Specifically, bidders must be active on eligibility. For example, depending 184. OEA will also make public after between 90% and 100% of their bidding upon the bidder’s overall bidding each clock phase bidding round eligibility in all clock rounds, with the eligibility and the contingent bidding whether the reserve price has been met, specific percentage within this range to percentage, a bidder could submit an that is, whether the estimated total cash be set for each round. Thus, the activity ‘‘additional’’ bid or bids that would be proceeds based on the bids in the most rule will be satisfied when a bidder has considered (in price point order with its recently completed round would satisfy bidding activity on blocks with bidding other bids) and applied as available

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eligibility permits during the bid to preserve a bidder’s eligibility. OEA and $0.003 per MHz-pop for all other processing. However, OEA and WTB and WTB note that the procedures to PEAs, subject to a minimum of $1000. emphasize that even under these permit a bidder to submit bids with These minimum opening bid amounts additional procedures, the bidder’s bidding activity greater than its are set forth in the ‘‘Attachment A’’ file activity as applied by the auction eligibility, within the precise limits set on the Auction 110 website at system during bid processing will not forth above, will address some of the www.fcc.gov/auction/110. exceed the bidder’s current bidding circumstances under which a bidder b. Clock Price Increments eligibility. That is, if a bidder submits risks losing bidding eligibility and bids with associated bidding units otherwise could wish to use a bidding 198. OEA and WTB adopt the exceeding 100% of its current bidding activity waiver, while minimizing any proposed procedures regarding clock eligibility, its processed activity cannot potential adverse impacts on bidder price increments for Auction 110. exceed its eligibility. incentives to bid sincerely and on the Accordingly, after bidding in the first 191. Under these procedures, after price setting mechanism of the clock round and before each subsequent Round 1 a bidder may submit bids with auction. This approach not to allow round, the bidding system will bidding units totaling up to a contingent waivers is consistent with the ascending announce the start-of-round price (also bidding limit equal to the bidder’s clock auction procedures used in other referred to as the posted price of the current bidding eligibility for the round FCC clock auctions. The clock auction previous round) and the clock price for times a percentage (the contingent relies on precisely identifying the point the upcoming round—that is, the lowest bidding percentage) equal to or greater at which demand decreases to equal price and the highest price at which than 100%. The Commission has supply to determine winning bidders bidders can specify the number of previously referred to the contingent and final prices. Allowing waivers blocks they demand during the round. bidding limit as the activity upper limit, would create uncertainty with respect to As long as aggregate demand for blocks and similarly, to the contingent bidding the exact level of bidder demand and in the product exceeds the supply of percentage as the activity limit would interfere with the basic clock blocks, the start-of-round price will be percentage. OEA and WTB modify those price-setting and winner determination equal to the clock price from the prior terms to remind bidders that bids mechanism. Moreover, uncertainty round. If demand equaled supply at a submitted using the contingent bidding about the level of demand would affect price in a previous round, then the start- limit will be applied only under certain the way bidders’ requests to reduce of-round price for the next round will be equal to the price at which demand circumstances. For Round 1, the demand are processed by the bidding equaled supply. If demand was less than contingent bidding limit would be system, as addressed below. 100% of the bidder’s initial bidding supply in the previous round, then the eligibility. OEA and WTB adopt an 7. Acceptable Bids start-of-round price for the next round initial contingent bidding percentage of a. Minimum Opening Bids will not increase. 120% to apply beginning in Round 2. 199. OEA will set the clock price for This limit will be subject to change in 195. As is typical for each auction, the blocks in a specific product for a round subsequent rounds within a range of Commission sought comment on the use by adding a percentage increment to the 100% to 140%. In any bidding round, of a minimum opening bid amount and/ start-of-round price. For example, if the the auction bidding system will advise or reserve price, as mandated by section start-of-round price for a block of a the bidder of its current bidding 309(j) of the Communications Act. OEA given product is $10,000, and the eligibility, its required bidding activity, and WTB will establish minimum percentage increment is 20%, then the and its contingent bidding limit. The opening bid amounts for Auction 110. clock price for the round will be Auction 110 Clock Phase Technical The bidding system will not accept bids $12,000. The result of the clock price Guide provides examples of use of the lower than the minimum opening bids calculation will be rounded as follows: contingent bidding limit, and bidders for each product. Based on the results above $10,000 will be rounded are encouraged to review them. Commission’s experience in past up to the nearest $1,000, and results 192. As with the activity requirement auctions, setting minimum opening bid below $10,000 will be rounded up to the percentage, OEA will retain the amounts judiciously is an effective tool nearest $100. OEA will set the initial discretion to change the contingent for accelerating the competitive bidding increment percentage at 10%, and may bidding percentage during the auction process. adjust the increment within a range of and will announce any such changes in 196. For Auction 110, the 5% to 20% inclusive, as rounds advance of the round in which they Commission proposed to calculate continue. The total dollar amount of the would take effect. minimum opening bid amounts based increment (the difference between the 193. Missing bids. Under the clock on bandwidth and license area clock price and the start-of-round price) auction format, bidders are required to population using a tiered approach will be capped at a certain amount. OEA indicate their demands in every round, under which the calculation would vary will set this cap on the increment even if their demands at the new by market population. The Commission initially at $50 million and may adjust round’s prices are unchanged from the proposed minimum opening bid the cap as rounds continue. The previous round. Missing bids—bids that amounts for a block in a PEA based on proposed 5% to 20% increment range are not reconfirmed—are treated by the $0.06 per MHz-pop for PEAs 1–50 and and cap will allow OEA to set a auction bidding system as requests to $0.02 per MHz-pop for all other PEAs, percentage that manages the auction reduce to a quantity of zero blocks for subject to a minimum of $1000. pace and takes into account bidders’ the product. If these requests are 197. Based on comments in the needs to evaluate their bidding applied, or applied partially, then a record, however, OEA and WTB adopt strategies while moving the auction bidder’s bidding activity, and its revised, lower minimum opening bid along quickly. bidding eligibility for the next round, amounts for Auction 110. Specifically, may be reduced. in which they would OEA and WTB adopt minimum opening c. Intra-Round Bids take effect. bid amounts for a block in a PEA based 200. As proposed, OEA and WTB will 194. For Auction 110, OEA and WTB on $0.03 per MHz-pop for PEAs 1–50, permit a bidder to make intra-round will not provide for activity rule waivers $0.006 per MHz-pop for PEAs 51–100, bids by indicating a point between the

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start-of-round price and the clock price quantity of blocks in a product at a price excess supply’’ rule would be satisfied at which its demand for blocks changes. (either the clock price or an intra-round for Cat1 in the PEA. In placing an intra-round bid, a bidder price). A ‘‘switch’’ bid allows the bidder b. Eligibility Rule and Aggregation Limit will indicate a specific price and a to request to move its demand for a for Bids To Increase Demand (different) quantity of blocks it demands quantity of blocks from Cat1 to Cat2, or if, after bids for the round are processed, vice versa, within the same PEA at a 209. The bidding system will not the price for blocks should increase price for the ‘‘from’’ category (either the allow a bidder to increase the quantity beyond that intra-round amount. clock price or an intra-round price). of blocks it demands in a product if the 201. An intra-round bid gives the ‘‘Switch’’ bids are allowed only in PEAs total number of bidding units associated bidder the flexibility to indicate that it with two categories. with the bidder’s demand exceeds the wants to change its demand at a price 206. OEA and WTB will not bidder’s bidding eligibility for the lower than the clock price. However, incorporate any form of package bidding round. Therefore, if a bidder submits a intra-round bids will be optional; a procedures into the clock phase of simple bid to increase the number of bidder may choose to express its Auction 110. Package bidding would blocks for which it has processed demands only at the clock prices. add complexity to the bidding process, demand as of the previous round, the Permitting intra-round bids allows the and OEA and WTB do not see bidding system will treat the bid as a auction system to use relatively large significant benefit from such request to increase demand that will be increments, thereby speeding the procedures, given the clock auction and applied only if it would not cause the auction, without running the risk that a assignment phase format OEA and WTB bidder’s activity to exceed its eligibility. jump in the clock price will overshoot adopt. A bidder may bid on multiple The eligibility rule for bids to increase the market clearing price—the point at blocks in a PEA (up to the limit of four) demand does not apply to switch bids which demand for blocks equals the and in multiple PEAs. As set forth because the bidder’s processed activity available supply. below, the assignment phase will assign does not change when a switch bid is contiguous blocks to winners of applied. 8. Bids To Change Demand, Bid Types, 210. In addition, in light of the in- multiple blocks in a category in a PEA and Bid Processing band aggregation limit of 40 megahertz and give bidders an opportunity to 202. Under the ascending clock in a PEA established by the 3.45 GHz express their preferences for specific auction format the Commission Second Report and Order, the bidding frequency blocks, thereby facilitating proposed for Auction 110, and which system will not permit a bidder to aggregations of licenses. Also as set OEA and WTB adopt, a bidder will increase the number of blocks it forth below, if there are one or more indicate in each round the number of demands in a PEA if its total demand in bidders that win blocks in both blocks in each product that it demands the PEA would exceed four blocks. at a given price, subject to the in-band categories, the assignment phase limit of four discussed above. bidding system will assign blocks that c. Partial Application of Bids 203. A bidder that is willing to are contiguous across the categories to 211. Under the bid processing maintain the same demand for a product one such bidder. procedures OEA and WTB adopt, as in (relative to its demands from the 207. OEA and WTB adopt bid all previous FCC spectrum auctions previous round as processed by the processing procedures that the auction using the clock auction format, a bid bidding system) at the new clock price bidding system will use, after each (simple bid or switch bid) that involves would bid for that quantity at the clock bidding round, to process bids to change a reduction from the bidder’s previous price, indicating that it is willing to pay demand to determine the processed demands can be applied partially—that up to that price, if need be, for the demand of each bidder for each product is, reduced by fewer blocks than specified quantity. Bids to maintain and a posted price for each product that requested in the bid—if excess demand demand will always be applied by the will serve as the start-of-round price for is insufficient to support the entire auction bidding system. A bidder that the next round. reduction. Accordingly, the bidding wishes to change the quantity it a. No Excess Supply Rule for Bids To system will apply a bidder’s request to demands would bid at the clock price or Reduce Demand reduce demand as much as possible at an intra-round price, depending upon consistent with the no excess supply the point at which its demands change. 208. Under the ascending clock rule. A switch bid may be applied 204. For example, if a bidder has auction format, the FCC auction bidding partially, but the increase in demand in processed demand for two blocks system will not allow a bidder to reduce the ‘‘to’’ category will always match in entering a round in which the start-of- the quantity of blocks it demands in a quantity the reduction in the ‘‘from’’ round price is $2,000 and the clock product if the reduction would result in category. A simple bid to increase a price is $2,500, but it is only willing to aggregate demand falling below (or bidder’s demand may be applied buy one block if the price should further below) the available supply of partially if the total number of bidding increase above $2,100, the bidder can blocks in the product. Therefore, if a units associated with the bidder’s submit an intra-round bid indicating a bidder submits a simple bid to reduce demand exceeds the bidder’s bidding bid quantity of one at a price of $2,100. the number of blocks for which it has eligibility for the round, or if fully Or, if the bidder is not willing to pay processed demand as of the previous applying the bid would violate the more than the start-of-round price of round, the bidding system will treat the aggregation limit. Therefore, the bidding $2,000 for any blocks, it can submit an bid as a request to reduce demand that system will accommodate a bidder’s intra-round bid requesting a quantity of will be applied only if the ‘‘no excess request to increase demand as much as zero at the start-of-round price of supply’’ rule would be satisfied. possible consistent with the aggregation $2,000. Similarly, if a bidder submits a switch limit and as long as the bidder’s activity 205. To facilitate bidding for multiple bid to move its demand for a quantity does not exceed its eligibility. blocks in a PEA, bidders will be of blocks from Cat1 to Cat2 within the permitted to make two types of bids: same PEA, the FCC auction bidding d. Processed Demand Simple bids and switch bids. A system will treat the bid as a request 212. As proposed, OEA and WTB ‘‘simple’’ bid indicates a desired that will be applied only if the ‘‘no adopt procedures to determine the order

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in which the bidding system will for that round. The bidding system will the extent of excess demand for blocks process bids after a round ends. Bids to then consider the bid submitted at the in each product. maintain demand are considered first next highest price point, applying it in 9. Winning Bids in the Clock Phase and always applied. The bidding system full, in part, or not at all, given the most will then process bids to change recently determined demands of 219. Under the clock auction format demand in order of price point, where bidders. Any unfulfilled requests will for Auction 110, if the reserve price to the price point represents the again be held in the queue, and meet the CSEA requirement is met in percentage of the bidding interval for aggregate demand will again be the clock phase, bidders with processed the round. For example, if the start-of- recalculated. Every time a bid or part of demand for a product at the time the round price is $5,000 and the clock a bid is applied, the unfulfilled bids stopping rule is met will become the price is $6,000, a price of $5,100 will held in the queue will be reconsidered, winning bidders of licenses correspond to the 10% price point, in the order of the original price points corresponding to that number of blocks since it is 10% of the bidding interval of the bids (and by pseudo-random and will be assigned specific between $5,000 and $6,000. The bidding number, in the case of tied price points). frequencies in the assignment phase. system will first consider intra-round The auction bidding system will not The final clock phase price for a generic bids in ascending order of price point carry over unfulfilled bid requests to the block in a product will be the posted and then bids at the clock price. The next round, however. The bidding price for the final round. This and other system will consider bids at the lowest system will advise bidders of the status Auction 110 bid processing details are price point across all PEAs, then look at of their bids when round results are addressed in the Auction 110 Clock bids at the next price point in all areas, released. Phase Technical Guide. and so on. If there are multiple bids at e. Price Determination a single price point, the system will B. Assignment Phase process those bids in order of a bid- 215. OEA and WTB further adopt bid 220. Following the conclusion of the processing procedures that will specific pseudo-random number. As it clock phase, if the reserve price to determine, based on aggregate demand, considers each submitted bid during bid satisfy the CSEA requirement has been the posted price for each product for the processing, the bidding system will met, the assignment phase will follow. round, which will serve as the start-of- determine the extent to which there is As proposed, in the assignment phase, round price for the next round. The excess demand in each PEA at that in a series of bidding rounds, each clock uniform price for all of the blocks in a point in the processing in order to phase winning bidder will have the product will increase from round to determine whether a bidder’s request to opportunity to indicate its preferences round as long as there is excess demand reduce demand can be applied. for specific frequency licenses for blocks in the product but will not Likewise, the auction bidding system corresponding to the generic blocks it will evaluate the activity associated increase if aggregate demand does not exceed the available supply of blocks. won in each category in the clock phase. with the bidder’s most recently As proposed, a bidder will be assigned determined demands at that point in the 216. Under these procedures, if at the end of a round the aggregate demand for contiguous frequencies for blocks it processing to determine whether a wins within each category and PEA request to increase demand can be blocks in the product exceeds the supply of blocks, the posted price will regardless of whether it chooses to bid applied. in the assignment phase. As set forth 213. Because in any given round some equal the clock price for the round. If a below, OEA and WTB adopt an bidders may request to increase reduction in demand was applied additional assignment procedure to demands for licenses while others may during the round and caused demand in address commenter concerns that the request reductions, the price point at the product to equal supply, the posted procedures, as proposed, did not take which a bid is considered by the price will be the price at which the bidding system can affect whether it is reduction was applied. If aggregate contiguity across categories into applied. Bids not applied because of demand is less than or equal to supply account. insufficient aggregate demand or and no bid to reduce demand was 1. Sequencing and Grouping of PEAs insufficient eligibility will be held in a applied for the product, then the posted queue and considered, again in order, if price will equal the start-of-round price 221. As proposed, OEA will sequence there should be excess demand or for the round. The range of acceptable assignment rounds to make it easier for sufficient eligibility later in the bid amounts for the next round will be bidders to incorporate frequency processing after other bids are set by adding the percentage increment assignments from previously assigned processed. to the posted price. areas into their bid preferences for other 214. Therefore, once a round closes, 217. When a bid to reduce demand areas, recognizing that bidders winning the bidding system will process bids to can be applied only partially, the multiple blocks of licenses generally change demand by first considering the uniform price for the product will stop will prefer contiguous blocks across bid submitted at the lowest price point increasing at that point, since the partial adjacent PEAs. To that end, OEA will and determining the maximum extent to application of the bid will result in conduct rounds for the largest markets which that bid can be applied given demand falling to equal supply. Hence, first to enable bidders to establish a bidders’ demands as determined at that a bidder that makes a bid to reduce ‘‘footprint’’ from which to work. point in the bid processing. If the bid demand that cannot be fully applied 222. Specifically, OEA will conduct a can be applied (either in full or will not face a price for the remaining separate assignment round for each of partially), the number of blocks the demand that is higher than its bid price. the top 20 PEAs and to conduct these bidder holds at that point in the 218. After the bids of the round have assignment rounds sequentially, processing will be adjusted, and been processed, if the stopping rule has beginning with the largest PEA. Once aggregate demand will be recalculated not been met, the FCC auction bidding the top 20 PEAs have been assigned, accordingly. If the bid cannot be applied system will announce clock prices to OEA will conduct, for each Regional in full, the unfulfilled bid, or portion indicate a range of acceptable bids for Economic Area Grouping (REAG), a thereof, will be held in a queue to be the next round. Each bidder will be series of assignment rounds for the considered later during bid processing informed of its processed demand and remaining PEAs within that region.

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223. Further, the bidding system will to one such bidder. To do so, the can bid. These bidding options will be group into a single market for bidding system will consider the sum of consistent with the bidder’s clock-phase assignment any non-top 20 PEAs within each such bidder’s bid for its Cat1 winnings but will not take into account a REAG in which the same winning option that includes the highest- the winnings of other bidders. The bidders will be assigned the same frequency block (D) and its bid for the bidding system will also announce the number of blocks in each category, and Cat2 option that includes the lowest- order in which assignment rounds will all are subject to the small markets frequency block (E). The bidder with the take place and indicate which PEAs will bidding cap or all are not subject to the highest bid total will be assigned be grouped together for bidding. The cap. Grouping in this way may also help licenses that are contiguous across the bidding system will provide clock phase categories (i.e., that include blocks D maximize contiguity across PEAs. winning bidders with this information 224. OEA will sequence the and E and any other blocks contiguous as soon as possible and will announce assignment rounds within a REAG in to D and/or E that the bidder won. The descending order of population for a bidder’s assignment payment will be the a schedule of assignment phase rounds PEA group or individual PEA. The price of the bidder with the second- that will commence no sooner than five bidding for the different REAGs will be highest total bid for options that include business days later. conducted in parallel in order to reduce blocks that are contiguous across 230. After each assignment round, the the total amount of time required to categories. bidding system will inform each bidder complete the assignment phase. 227. Once the bidding system has of its own assignment and assignment determined whether there is at least one 2. Acceptable Bids and Bid Processing payment for each assignment category bidder with cross-category winnings for each PEA or PEA group assigned in 225. Under the bidding procedures and if so, has assigned licenses to one the round. The bidding system will also OEA and WTB adopt, in each of those bidders, the system will, as provide each bidder with its current assignment round a bidder will be asked proposed, use an optimization approach total payment, which is calculated as to assign a price to one or more possible to determine the winning frequency the sum of the bidder’s total clock frequency assignments for which it assignment for the remaining blocks in payment across all PEAs and the wishes to express a preference, each category in each PEA or PEA consistent with its winnings for generic group. The auction system will select bidder’s assignment payments for the blocks in the clock phase. The price will the assignment that maximizes the sum PEAs for which an assignment round represent a maximum payment that the of bid amounts among all assignments has already completed. During the bidder is willing to pay, in addition to that satisfy the contiguity requirements assignment rounds this information will the price established in the clock phase within categories. Furthermore, if provide the bidder a running estimate of for the generic blocks, for the frequency- multiple blocks in a category in a PEA the dollar amount it will owe at the end specific license or licenses in its bid. In remain unsold, the unsold licenses will of the auction. A bidder that is claiming PEAs where there are two categories and be contiguous. a bidding credit will also be informed a bidder won generic blocks in both 228. The additional price a bidder about its current bidding credit discount categories, a bidder will submit its will pay for a specific frequency and whether the discount has been preferences for blocks won in Cat1 and assignment (above the clock phase capped. Cat2 separately, rather than submitting price) in a given category will be bids for preferences that include blocks calculated consistent with a generalized C. Final Auction Payment Calculations in both categories. That is, if a bidder ‘‘second price’’ approach—that is, the 231. When all assignment rounds won one block in Cat1 and two blocks winner will pay a price that would be have been completed, a bidder’s final in Cat2, it will not be able to submit a just sufficient to result in the bidder single bid amount for an assignment receiving that same winning frequency auction payment takes into account the that includes both categories. Instead, it assignment while ensuring that no sum of final clock phase prices across will submit its bid or bids for group of bidders is willing to pay more all licenses that it won, the sum of all assignments in Cat1 separately from its for an alternative assignment where of the bidder’s assignment payments, bid or bids for assignments in Cat2. each bidder is assigned contiguous and any claimed bidding credits. 226. In response to numerous spectrum within that category. This Specifically, if a bidder is not claiming comments requesting that the price will be less than or equal to the a bidding credit, its final payment is Commission implement procedures that price the bidder indicated it was willing determined by summing the final clock would prioritize contiguous to pay for the assignment. OEA will phase prices across all licenses that it assignments across categories, OEA and determine prices in this way because it won and its assignment payments across WTB modify the procedures proposed facilitates bidding strategy for the all PEAs or PEA groups. in the Auction 110 Comment Public bidders, encouraging them to bid their 232. If a bidder claims a bidding Notice to ensure that, in PEAs with both full value for the assignment, knowing Cat1 and Cat2 blocks, if one or more credit, a bidding credit discount is that if the assignment is selected, they calculated by applying the bidder’s bidders win blocks in both categories in will pay no more than would be bidding credit percentage to the sum of the clock phase, one of those bidders necessary to ensure that the outcome is the bidder’s clock payments and will be assigned licenses that are competitive. contiguous across the categories. assignment payments, capping the Specifically, in each assignment round, 3. Information Available to Bidders bidding credit discount if it exceeds the prior to implementing the proposed During the Assignment Phase applicable caps for small businesses, optimization procedures separately for 229. After the clock phase concludes rural service providers, and small each category in the PEA or PEA group, but before bidding begins in the markets. The resulting bidding credit the bidding system will first determine assignment phase, the bidding system discount is subtracted from the sum of if there are one or more bidders with will provide to each assignment phase the bidder’s clock payments and winnings in both categories. If there are, bidder a menu of bidding options assignment payments to determine the the bidding system will assign blocks consisting of possible configurations of final payment for a bidder with a that are contiguous across the categories frequency-specific licenses on which it bidding credit.

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D. Calculating Individual ‘‘Per-License’’ results will be released shortly after bidding credit must demonstrate its Prices bidding has ended in Auction 110. This eligibility for the bidding credit sought 233. While final auction payments for public notice will also establish the in its FCC Form 601 post-auction winning bidders will be calculated with deadlines for submitting down application. Further instructions on bidding credit caps and assignment payments, final payments, and the long- these and other filing requirements will payments applied on an aggregate basis, form applications (FCC Form 601) for be provided to winning bidders in the rather than to individual licenses, the the auction. auction closing public notice for Auction 110. bidding system will also calculate a A. Down Payments ‘‘per-license’’ price for each license. 242. Winning bidders organized as 238. The Commission’s rules provide Such individual prices may be needed bidding consortia must comply with the that, unless otherwise specified by if a licensee later incurs license-specific FCC Form 601 post-auction application public notice, within ten business days obligations, such as unjust enrichment procedures set forth in section 1.2107(g) after the release of the auction closing payments. of the Commission’s rules. Specifically, 234. After the assignment phase, the public notice for Auction 110, each license(s) won by a consortium must be auction bidding system will determine a winning bidder must submit sufficient applied for as follows: (a) An individual net and gross post-auction price for each funds (in addition to its upfront member of the consortium or a new license that a bidder won by payment) to bring its total amount of legal entity comprising two or more apportioning assignment payments and money on deposit with the Commission individual consortium members must bidding credit discounts (only to 20% of the net amount of its winning file for licenses covered by the winning applicable for the net price) across all bids (less any bidding credits, if bids; (b) each member or group of the bidder’s licenses. To calculate the applicable). Because it is not possible to members of a winning consortium gross per-license price, the auction know when bidding in Auction 110 will seeking separate licenses will be bidding system will apportion the end, and thus whether post-auction required to file a separate FCC Form 601 assignment payment to licenses in payments will be due in late 2021 or for its/their respective license(s) in their proportion to the final clock phase price early 2022, some commenters request legal business name; (c) in the case of of the blocks that the bidder is assigned that OEA and WTB announce before the a license to be partitioned or in that assignment category and PEA (or bidding begins that down payments will disaggregated, the member or group PEA group). Mathematical details of be due in early 2022. Commission staff filing the applicable FCC Form 601 shall these procedures, including how the have previously recognized that include the parties’ partitioning or system apportions the assignment uncertainties regarding the year in disaggregation agreement with the FCC payment for an assignment that is which down payments will be due Form 601; and (d) if a DE credit is contiguous across the two categories, are could affect potential applicants from a sought (either small business or rural given in the Auction 110 Assignment capital planning perspective, and that service provider), the applicant must Phase Technical Guide. To calculate the this could in turn affect auction meet the applicable eligibility net price, the auction bidding system participation. Acknowledging that such requirements in the Commission’s rules will first apportion any applicable uncertainties may be presented under for the credit. bidding credit discounts to each PEA or the current schedule for Auction 110, D. Ownership Disclosure Information PEA group in proportion to the gross OEA and WTB exercise their discretion Report (FCC Form 602) payment for that market. Then, for each under the Commission’s rules to set the 243. Within 10 business days after PEA or PEA group, the auction bidding down payment deadline for Auction 110 release of the auction closing public system will apportion the assignment to be the later of January 7, 2022, or ten notice for Auction 110, each winning payment and the discount to licenses in business days after release of the bidder must also comply with the proportion to the final clock phase price auction closing public notice. ownership reporting requirements in of the blocks that the bidder is assigned B. Final Payments sections 1.913, 1.919, and 1.2112 of the in that assignment category for that PEA Commission’s rules by submitting an (or PEA group). 239. Each winning bidder will be required to submit the balance of the net ownership disclosure information report E. Auction Results amount for each of its winning bids for wireless telecommunications 235. The bidding system will within 10 business days after the services (FCC Form 602) with its FCC determine winning bidders as described deadline for submitting down payments. Form 601 post-auction application. in Section IV.A.9 (Winning Bids in the 244. If a winning bidder already has C. Long-Form Application (FCC Form a complete and accurate FCC Form 602 Clock Phase), above. After release of the 601) public notice announcing auction on file in the FCC’s Universal Licensing results, the public will be able to view 240. The Commission’s rules provide System (ULS), then it is not necessary and download bidding and results data that, within 10 business days after to file a new report, but the winning through the FCC Public Reporting release of the auction closing public bidder must certify in its FCC Form 601 System (PRS). notice, winning bidders must application that the information on file electronically submit a properly with the Commission is complete and F. Auction Announcements completed post-auction application accurate. If the winning bidder does not 236. Commission staff will use (FCC Form 601), including the have an FCC Form 602 on file, or if the auction announcements to report necessary filing fee of $3,175, for the form on file is not complete and necessary information, such as schedule license(s) they won through the auction. accurate, then the winning bidder must changes, to bidders. All auction The filing fee will be required only if submit a new one. announcements will be available by the recently amended section 1.1102 of 245. When a winning bidder submits clicking a link in the bidding system. the Commission’s rules is in effect by an FCC Form 175, ULS automatically the post-auction application deadline. creates an ownership record. This V. Post-Auction Procedures 241. A winning bidder claiming record is not an FCC Form 602, but it 237. The public notice announcing eligibility for a small business bidding may be used to pre-fill the FCC Form the close of the bidding and auction credit or a rural service provider 602 with the ownership information

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submitted on the winning bidder’s FCC the winning bid the next time a license 418–2843, by email to Form 175 application. A winning bidder covering the same spectrum is won in [email protected]. must review the pre-filled information an auction, plus an additional payment Note: Refund processing generally takes up and confirm that it is complete and equal to a percentage of the defaulter’s to two weeks to complete. Bidders with accurate as of the filing date of the FCC bid or of the subsequent winning bid, questions about refunds should contact Scott Form 601 post-auction application whichever is less. Radcliffe at (202) 418–7518 or Theresa Meeks before certifying and submitting the FCC 249. The percentage of the applicable at (202) 418–2945. Form 602. Further instructions will be bid to be assessed as an additional provided to winning bidders in the payment for defaults in a particular VI. Procedural Matters auction closing public notice. auction is established in advance of the 253. Supplemental Final Regulatory auction. OEA and WTB adopt the E. Tribal Lands Bidding Credit Flexibility Analysis. As required by the Commission’s proposal to set the Regulatory Flexibility Act of 1980, as 246. A winning bidder that intends to additional default payment for Auction amended (RFA), 5 U.S.C. 603, a use its license(s) to deploy facilities and 110 at 15% of the applicable bid for Supplemental Initial Regulatory provide services to federally recognized winning bids. The bidding system will Flexibility Analysis (Supplemental tribal lands that have a wireline calculate individual per-license prices IRFA) was incorporated in the Auction penetration rate equal to or below 85% that are separate from final auction 110 Comment Public Notice released in is eligible to receive a tribal lands payments, which are calculated on an March 2021. The Commission sought bidding credit as set forth in sections aggregate basis. public comment on the proposals in the 1.2107(e) and 1.2110(f)(3) of the 250. Finally, in the event of a default, Auction 110 Comment Public Notice, Commission’s rules. A tribal lands the Commission has the discretion to re- bidding credit is in addition to, and auction the license or offer it to the next including comments on the separate from, any other bidding credit highest bidder (in descending order) at Supplemental IRFA. The Rural Wireless for which a winning bidder may qualify. its final bid amount. In addition, if a Association, Inc. (RWA) filed comments 247. Unlike other bidding credits that default or disqualification involves specifically addressing the are requested prior to the auction, a gross misconduct, misrepresentation, or Supplemental IRFA, and OEA and WTB winning bidder applies for the tribal bad faith by an applicant, then the address those comments in the lands bidding credit after the auction Commission may declare the applicant Supplemental FRFA in the Auction 110 when it files its FCC Form 601 post- and its principals ineligible to bid in Procedures Public Notice. The Auction auction application. When initially future auctions and may take any other 110 Procedures Public Notice filing the post-auction application, the action that it deems necessary, establishes the procedures to be used for winning bidder will be required to including institution of proceedings to Auction 110 and supplements the Initial inform the Commission whether it revoke any existing authorizations held and Final Regulatory Flexibility intends to seek a tribal lands bidding by the applicant. Analyses completed by the Commission credit, for each license won in the in the 3.1–3.55 GHz Report and Order auction, by checking the designated G. Refund of Remaining Upfront (R&O) and Further Notice of Proposed box(es). After stating its intent to seek a Payment Balance Rulemaking (FNPRM), 85 FR 64062, tribal lands bidding credit, the winning 251. All refunds of upfront payment October 2, 2020, and 85 FR 66888, bidder will have 180 days from the close balances will be returned to the payer of October 21, 2020, 3.45 GHz Second of the post-auction application filing record as identified on the FCC Form Report and Order, 86 FR 17920, April 7, window to amend its application to 159 unless the payer submits written 2021, 3.45 GHz Second Report and select the specific tribal lands to be authorization instructing otherwise. Order, and other Commission orders served and provide the required tribal Bidders are encouraged to use the pursuant to which Auction 110 will be government certifications. Licensees Refund Information icon found on the conducted. This present Supplemental receiving a tribal lands bidding credit Auction Application Manager page or Final Regulatory Flexibility Analysis are subject to performance criteria as set the Refund Form link available on the (Supplemental FRFA) conforms to the forth in section 1.2110(f)(3)(vii). For Auction Application Submit RFA. additional information on the tribal Confirmation page in the FCC Auction 254. Need for, and Objectives of, the lands bidding credit, including how the Application System to access the form. Rules. The Auction 110 Procedures amount of the credit is calculated, After the required information is Public Notice implements auction applicants should review the completed on the blank form, the form procedures for those entities that seek to Commission’s rulemaking proceeding should be printed, signed, and bid to acquire licenses in Auction 110. regarding tribal lands bidding credits submitted to the Commission by mail, Auction 110 will be the Commission’s and related public notices. fax, or email as instructed below. third auction of mid-band spectrum in 252. If you have elected not to access furtherance of the deployment of fifth- F. Default and Disqualification the Refund Form through the Auction generation (5G) wireless, the Internet of 248. Any winning bidder that defaults Application Manager page, the Things (IoT), and other advanced or is disqualified after the close of an Commission is requesting that all spectrum-based services. The Auction auction (i.e., fails to remit the required information listed below be supplied in 110 Procedures Public Notice adopts down payment by the specified writing. procedural rules and terms and deadline, fails to submit a timely long- Name, address, contact and phone conditions governing Auction 110, and form application, fails to make a full number of Bank, ABA Number (capable the post-auction application and and timely final payment, or is to accept ACH payments), Account payment processes, as well as sets the otherwise disqualified) is liable for Number to Credit, Name of Account minimum opening bid amounts for default payments as described in section Holder, FCC Registration Number flexible-use licenses in the 3.45–3.55 1.2104(g)(2). A default payment consists (FRN). GHz band (3.45 GHz Service) that will of a deficiency payment, equal to the The refund request must be submitted be offered in Auction 110. difference between the amount of the by fax to the Revenue & Receivables 255. To promote the efficient and fair bidder’s winning bid and the amount of Operations Group/Auctions at (202) administration of the competitive

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bidding process for all Auction 110 • use of an activity rule that would which amended the RFA, the participants, OEA and WTB adopt the require bidders to be active on between Commission is required to respond to following procedures proposed in the 90% and 100% of their bidding any comments filed by the Chief Auction 110 Comment Public Notice: eligibility in all regular clock rounds; Counsel for Advocacy of the SBA and to • Establishment of bidding credit • use of an activity rule that does not provide a detailed statement of any caps for eligible small businesses, very include a waiver of the rule to preserve changes made to the proposed small businesses, and rural service a bidder’s eligibility; procedures as a result of those • providers in Auction 110; a specific minimum opening bid comments. The Chief Counsel did not • designation of AT&T, T-Mobile, and amount for products available in file any comments in response to the Auction 110; procedures that were proposed in the Verizon Wireless as nationwide • providers for purposes of the establishment of acceptable bid Auction 110 Comment Public Notice. prohibition of certain communications; amounts, including clock price 259. Description and Estimate of the • use of anonymous bidding/limited increments and intra-round bids, along Number of Small Entities to Which the information procedures which will not with a proposed methodology for Rules Will Apply. The RFA directs make public until after bidding has calculating such amounts; agencies to provide a description of, • establishment of a methodology for closed: (1) The PEAs that an applicant and, where feasible, an estimate of the processing bids and requests to reduce selects for bidding in its short-form number of small entities that may be and increase demand subject to the no application (FCC Form 175), (2) the affected by the rules and policies excess supply rule for bids to reduce amount of any upfront payment made adopted herein. The RFA generally demand and the eligibility rule for bids by or on behalf of an applicant for defines the term ‘‘small entity’’ as to increase demand; and having the same meaning as the terms Auction 110, (3) an applicant’s bidding • establishment of an assignment ‘‘small business,’’ ‘‘small organization,’’ eligibility, and (4) any other bidding- phase that will determine which related information that might reveal the and ‘‘small governmental jurisdiction.’’ frequency-specific licenses will be won In addition, the term ‘‘small business’’ identity of the bidder placing a bid; by the winning bidders of generic blocks • establishment of an additional has the same meaning as the term during the clock phase. ‘‘small business concern’’ under the default payment of 15% under section 256. The procedures for the conduct 1.2104(g)(2) of the rules in the event that Small Business Act. 5 U.S.C. 601(3). of Auction 110 constitute the more Pursuant to 5 U.S.C. 601(3), the a winning bidder defaults or is specific implementation of the disqualified after the auction; statutory definition of a small business competitive bidding rules contemplated applies unless an agency, after • a specific upfront payment amount by parts 1 and 27 of the Commission’s consultation with the Office of for products available in Auction 110; rules and the underlying rulemaking Advocacy of the Small Business • establishment of a bidder’s initial orders, including the 3.45 GHz Second Administration and after opportunity bidding eligibility in bidding units Report and Order, and relevant for public comment, establishes one or based on that bidder’s upfront payment competitive bidding orders, and are more definitions of such term which are through assignment of a specific number fully consistent therewith. appropriate to the activities of the of bidding units for each generic block; 257. Summary of Significant Issues • agency and publishes such definition(s) establishment of a single aggregate Raised by Public Comments in Response in the Federal Register. A ‘‘small reserve price for the auction to ensure to the Supplemental IRFA. RWA filed business concern’’ is one which: (1) Is that total cash proceeds from the comments that address issues discussed independently owned and operated, (2) auction equal at least $14,775,354,330; in the Supplemental IRFA. RWA argues • is not dominant in its field of operation, use of a simultaneous stopping rule that the Commission’s analysis in the and (3) satisfies any additional criteria for Auction 110, under which all blocks Auction 110 Comment Public Notice’s established by the SBA. in both categories in all PEAs would Supplemental IRFA underestimates the 260. As noted above, Regulatory remain available for bidding until the costs that small and rural entities incur Flexibility Analyses were incorporated bidding stops in every PEA; when participating in an FCC auction. into the 3.1–3.55 GHz R&O and FNPRM • use of a clock auction format for RWA states that, contrary to the and the 3.45 GHz Second Report and Auction 110 under which each qualified Commission’s expectations, small and Order. These orders provide the bidder will indicate in successive clock rural providers regularly consult underlying authority for the procedures bidding rounds its demands for attorneys, engineers, and consultants to proposed in the Auction 110 Comment categories of generic blocks in specific participate in Commission auctions, Public Notice and are adopted herein for geographic areas. Categories are incurring costs of up to $100,000 on Auction 110. In those regulatory determined based on the framework set average per auction. However, RWA flexibility analyses, the Commission forth in the 3.45 GHz Second Report provides no support for this cost figure. described in detail the small entities and Order, in which the lower Nor does RWA clarify what portion of that might be significantly affected. In frequency bands are affected differently this figure represents costs associated the Auction 110 Procedures Public than the upper frequency bands in with applying to participate in the Notice, in the Supplemental FRFA, OEA certain PEAs in the band; auction and/or whether the figure may and WTB incorporate by reference the • permission for bidders to make two be an aggregate amount for all of its descriptions and estimates of the types of bids: Simple bids and switch trade association members. RWA also number of small entities from the bids. A ‘‘simple’’ bid indicates a desired claims that the educational materials previous Regulatory Flexibility quantity of blocks in a product at a price provided by the Commission are Analyses in the 3.1–3.55 GHz R&O and (either the clock price or an intra-round insufficient, as some materials are not FNPRM and the 3.45 GHz Second price). A ‘‘switch’’ bid allows the bidder provided until after the short-form Report and Order. to request to move its demand for a application deadline. 261. Description of Projected quantity of blocks from Cat1 to Cat2, or 258. Response to Comments by the Reporting, Recordkeeping, and Other vice versa, within the same PEA at a Chief Counsel for Advocacy of the Small Compliance Requirements for Small price for the ‘‘from’’ category (either the Business Administration. Pursuant to Entities. The Commission designed the clock price or an intra-round price); the Small Business Jobs Act of 2010, auction application process to minimize

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reporting and compliance requirements OEA and WTB expect small entities that to help guide their participation in for small businesses and other use the available resources to Auction 110, which should alleviate any applicants. In the first part of the experience lower participation and need to hire professionals. For example, Commission’s two-phased auction compliance costs. small entities and other would-be application process, parties desiring to 263. RWA does not provide evidence participants will be provided with participate in an auction file that suggests that outside consultants various materials on the pre-bidding streamlined, short-form applications in are needed to comply with the auction process in advance of the short-form which they certify under penalty of procedures adopted here. Instead, RWA application filing window, which perjury as to their qualifications. claims that small entity bidders cannot includes step-by-step instructions on Eligibility to participate in bidding is make complex decisions on the future how to complete FCC Form 175. In based on an applicant’s short-form impacts of auction bidding, addition, small entities will have access application and certifications, as well as participation, and winning bidder to the web-based, interactive online its upfront payment. In the second compliance requirements without tutorials produced by Commission staff phase of the process, winning bidders outside counsel. In doing so, RWA to familiarize themselves with auction file a more comprehensive long-form appears to conflate compliance with procedures, filing requirements, bidding application. Thus, an applicant that fails auction procedures with the procedures, and other matters related to to become a winning bidder does not development of bidding strategies and an auction. need to file a long-form application or compliance with the relevant service 267. The Commission has also taken provide the additional showings and rules. As discussed below, the steps to ensure that the application more detailed demonstrations required Commission makes every effort to system is simple to use and that FCC of a winning bidder. educate auction participants at every Form 175 itself is easy to complete. For stage of the auction process in order to example, the application will pre-fill 262. OEA and WTB do not expect that reduce the need for outside consultants. ownership information that an applicant the processes and procedures adopted 264. Moreover, neither the short-form has previously provided in FCC Form in the Auction 110 Procedures Public application nor the bidding system for 175 for prior auctions or in an FCC Notice will require small entities to hire Auction 110 require applicants to Form 602. attorneys, engineers, consultants, or provide detailed technical or financial 268. After the initial application stage, other professionals to participate in information that would require the auction participants whose applications Auction 110 and comply with the advice of outside experts, nor do they have been deemed incomplete have the procedures adopted in the Auction 110 require technical or legal expertise to opportunity to correct their errors. An Procedures Public Notice because of the access or use. That some entities may applicant whose application is deemed information, resources, and guidance elect to hire outside consultants as a incomplete will receive a letter from the the Commission makes available to matter of convenience and/or to develop Commission identifying the specific potential and actual participants. OEA bidding strategies is not relevant to the errors in their application and providing and WTB cannot quantify the cost of question of whether they are necessary contact information for a specific FCC compliance with the procedures, for small entities to comply with staff member who has been assigned to however, they do not believe that the auction procedures. provide additional information about cost of compliance will unduly burden 265. Steps Taken to Minimize the the nature of the errors and the small entities that choose to participate Significant Economic Impact on Small information needed to correct them. in the auction. OEA and WTB note that Entities, and Significant Alternatives Additionally, after the application the processes and procedures are Considered. The RFA requires an process is complete and the consistent with existing Commission agency to describe any significant, Commission has identified the policies and procedures used in prior specifically small business, alternatives applicants who will be qualified to bid auctions. Thus, some small entities may that it has considered in reaching its in Auction 110, all qualified bidders for already be familiar with such approach, which may include the Auction 110 will automatically be procedures and have the processes and following four alternatives (among registered for the auction, and procedures in place to facilitate others): (1) The establishment of registration materials will be distributed compliance resulting in minimal differing compliance or reporting prior to the auction by overnight incremental costs to comply. For those requirements or timetables that take into delivery. Applicants are not required to small entities that may be new to the account the resources available to small take any further steps until bidding Commission’s auction process, the entities; (2) the clarification, commences. various resources that will be made consolidation, or simplification of 269. Prior to the start of bidding, available, including, but not limited to, compliance and reporting requirements eligible bidders will be given an the mock auction, remote electronic under the rule for such small entities; opportunity to become familiar with bidding, and access to hotlines for both (3) the use of performance rather than auction procedures and the bidding technical and auction assistance, should design standards; and (4) an exemption system by participating in a mock help facilitate participation without the from coverage of the rule, or any part auction. Eligible bidders will have need to hire professionals. For example, thereof, for such small entities. access to a user guide for the bidding OEA intends to release an online 266. The Commission has taken steps system, bidding file formats, and an tutorial that will help applicants to minimize any economic impact of its online bidding procedures tutorial in understand the procedures for filing the auction procedures on small entities advance of the mock auction. Further, auction short-form applications (FCC through, among other things, the many OEA and WTB will conduct Auction Form 175). OEA also intends to offer free resources the Commission provides 110 electronically over the internet other educational opportunities for to potential auction participants. As using a web-based auction system that applicants in Auction 110 to familiarize mentioned above, consistent with the eliminates the need for small entities themselves with the FCC Auction past practices in prior auctions, small and other bidders to be physically Application System and the bidding entities that are potential participants present in a specific location. These system. By providing these resources as will have access to detailed educational mechanisms are made available to well as the resources discussed below, information and Commission personnel facilitate participation in Auction 110

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by all eligible bidders and may result in applicants can receive only one of the including the Supplemental FRFA, to significant cost savings for small entities available small business bidding the Chief Counsel for Advocacy of the that use them. Moreover, the adoption credits—not both. SBA. of bidding procedures in advance of the 273. An eligible rural service provider Federal Communications Commission. auction, consistent with statutory may request a 15% discount on its William Huber, directive, is designed to ensure that the overall payment using a rural service auction will be administered provider bidding credit. To be eligible Associate Chief, Auctions Division, Office of Economics and Analytics. predictably and fairly for all for a rural service provider bidding participants, including small credit, an applicant must: (1) Be a [FR Doc. 2021–12617 Filed 6–22–21; 8:45 am] businesses. service provider that is in the business BILLING CODE 6712–01–P 270. Small entities and other auction of providing commercial participants may seek clarification of, or communications services and, together guidance on, complying with with its controlling interests, affiliates, DEPARTMENT OF COMMERCE competitive bidding rules and and the affiliates of its controlling procedures, reporting requirements, and interests, has fewer than 250,000 National Oceanic and Atmospheric using the bidding system at any stage of combined wireless, wireline, Administration the auction process. Additionally, an broadband, and cable subscribers; and FCC Auctions Hotline will provide (2) serve predominantly rural areas. 50 CFR Part 660 small entities one-on-one access to Rural areas are defined as counties with [Docket No. 210616–0131] Commission staff for information about a population density of 100 or fewer the auction process and procedures. persons per square mile. Eligible RIN 0648–BK25 Further, the FCC Auctions Technical applicants can request either a small Magnuson-Stevens Act Provisions; Support Hotline is another resource that business bidding credit or a rural Fisheries Off West Coast States; provides technical assistance to service provider bidding credit, but not Pacific Coast Groundfish Fishery; 2021 applicants, including small entities, on both. Harvest Specifications for Pacific 274. The total amount of bidding issues such as access to or navigation Whiting, and 2021 Pacific Whiting within the electronic FCC Form 175 and credit discounts that may be awarded to Tribal Allocation use of the bidding system. an eligible small business is capped at 271. The Commission also makes $25 million and there is a $10 million AGENCY: National Marine Fisheries various databases and other sources of cap on the total amount of bidding Service (NMFS), National Oceanic and information, including the Auctions credit discounts that may be awarded to Atmospheric Administration (NOAA), program websites and copies of an eligible rural service provider. In Commerce. Commission decisions, available to the addition, to create parity among eligible ACTION: Final rule. public without charge, providing a low- small businesses and rural service cost mechanism for small entities to providers competing against each other SUMMARY: NMFS issues this final rule to conduct research prior to and in smaller markets, OEA and WTB establish the 2021 harvest specifications throughout the auction. Prior to the start adopt a $10 million cap on the overall and management measures for Pacific of bidding, and at the close of Auction amount of bidding credits that any whiting caught in the U.S. Exclusive 110, OEA will post public notices on the winning designated entity may apply to Economic Zone off the coasts of Auctions website that articulate the winning licenses in PEAs with a Washington, Oregon, and California procedures and deadlines for the population of 500,000 or less. Based on consistent with the Magnuson-Stevens auction. The Commission makes this the technical characteristics of the 3.45– Fishery Conservation and Management information easily accessible and 3.55 GHz band and OEA and WTB’s Act, the Pacific Whiting Act of 2006, without charge to benefit all Auction analysis of past auction data, OEA and and other applicable laws. This rule also 110 applicants, including small entities, WTB anticipate that the caps adopted in establishes the 2021 adjusted U.S. Total thereby lowering their administrative the Auction 110 Procedures Public Allowable Catch (TAC), tribal and non- costs to comply with the Commission’s Notice will allow the majority of small tribal allocations, and research and competitive bidding rules. businesses to take full advantage of the bycatch set-asides. These measures are 272. Another step taken to minimize bidding credit program, thereby intended to help prevent overfishing, the economic impact for small entities lowering the relative costs of achieve optimum yield, ensure that participating in Auction 110 is the participation for small businesses. management measures are based on the Commission’s adoption of bidding 275. These procedures for the conduct best scientific information available and credits for small businesses and rural of Auction 110 constitute the more ensure the long-term sustainability of service providers. In accordance with specific implementation of the Pacific whiting. the service rules applicable to the 3.45 competitive bidding rules contemplated DATES: Effective June 23, 2021. GHz Service licenses to be offered in by parts 1 and 27 of the Commission’s Auction 110, bidding credit discounts rules and the underlying rulemaking ADDRESSES: This final rule is accessible will be available to eligible small orders, including the 3.45 GHz Second via the internet at the Office of the businesses and small business consortia Report and Order and relevant Federal Register website at https:// on the following basis: (1) A bidder with competitive bidding orders, and are www.federalregister.gov. Background attributed average annual gross revenues fully consistent therewith. information and documents are that do not exceed $55 million for the 276. Report to Congress. The available at the NMFS website at preceding five years is eligible to receive Commission will send a copy of the https://www.fisheries.noaa.gov and at a 15% discount on its overall payment Auction 110 Procedures Public Notice, the Pacific Fishery Management or (2) a bidder with attributed average including the Supplemental FRFA, in a Council’s website at http:// annual gross revenues that do not report to Congress pursuant to the www.pcouncil.org/. exceed $20 million for the preceding Congressional Review Act. In addition, FOR FURTHER INFORMATION CONTACT: five years is eligible to receive a 25% the Commission will send a copy of the Stacey Miller, phone: 503–231–6290, discount on its overall payment. Eligible Auction 110 Procedures Public Notice, and email: [email protected].

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