PUBLIC NOTICE Federal Communications Commission News Media Information 202 / 418-0500 445 12th St., S.W. Internet: http://www.fcc.gov Washington, D.C. 20554 TTY: 1-888-835-5322 DA 14-1018 July 23, 2014 AUCTION OF ADVANCED WIRELESS SERVICES (AWS-3) LICENSES SCHEDULED FOR NOVEMBER 13, 2014 NOTICE AND FILING REQUIREMENTS, RESERVE PRICES, MINIMUM OPENING BIDS, UPFRONT PAYMENTS, AND OTHER PROCEDURES FOR AUCTION 97 AU DOCKET NO. 14-78 TABLE OF CONTENTS Heading Paragraph # I. GENERAL INFORMATION ................................................................................................................ 1 A. Introduction...................................................................................................................................... 1 B. Description of Licenses to be Offered in Auction 97 ...................................................................... 6 C. Rules and Disclaimers...................................................................................................................... 9 1. Relevant Authority .................................................................................................................... 9 2. Prohibited Communications and Compliance with Antitrust Laws ........................................ 11 a. Entities Subject to Section 1.2105 .................................................................................... 12 b. Prohibition Applies Until Down Payment Deadline......................................................... 18 c. Prohibited Communications ............................................................................................. 19 d. Disclosure of Bidding Agreements and Arrangements..................................................... 23 e. Section 1.2105(c) Certification......................................................................................... 26 f. Duty to Report Prohibited Communications..................................................................... 27 g. Procedure for Reporting Prohibited Communications...................................................... 30 h. Winning Bidders Must Disclose Terms of Agreements ................................................... 33 i. Additional Information Concerning Rule Prohibiting Certain Communications ............. 34 j. Antitrust Laws................................................................................................................... 35 3. Incumbency Issues .................................................................................................................. 37 4. Commercial Spectrum Enhancement Act/Spectrum Act Requirements ................................. 39 5. International Coordination ...................................................................................................... 42 6. Quiet Zones ............................................................................................................................. 43 7. Spectrum Screen for Competitive Review of Secondary Market Transactions ...................... 44 8. Due Diligence.......................................................................................................................... 46 9. Use of Integrated Spectrum Auction System .......................................................................... 52 10. Fraud Alert .............................................................................................................................. 53 11. Environmental Review Requirements..................................................................................... 55 D. Auction Specifics........................................................................................................................... 56 1. Auction Start Date................................................................................................................... 56 2. Auction Title............................................................................................................................ 58 3. Bidding Methodology.............................................................................................................. 59 4. Pre-Auction Dates and Deadlines............................................................................................ 60 Federal Communications Commission DA 14-1018 5. Requirements for Participation................................................................................................ 62 II. SHORT-FORM APPLICATION (FCC FORM 175) REQUIREMENTS........................................... 63 A. General Information Regarding Short-Form Applications ............................................................ 63 B. License Selection ........................................................................................................................... 68 C. Disclosure of Bidding Arrangements............................................................................................. 69 D. Ownership Disclosure Requirements............................................................................................. 72 E. Foreign Ownership Disclosure Requirements ............................................................................... 74 F. National Security Certification Requirement for Auction 97 Applicants...................................... 75 G. Acknowledgement Statement for Auction 97 Applicants.............................................................. 76 H. Designated Entity Provisions......................................................................................................... 79 1. Bidding Credits for Small Businesses ..................................................................................... 80 a. Bidding Credit Eligibility Criteria .................................................................................... 81 b. Revenue Disclosure on Short-Form Application.............................................................. 84 2. Attributable Interests ............................................................................................................... 85 a. Controlling Interests ......................................................................................................... 85 b. Affiliates ........................................................................................................................... 87 c. Material Relationships ...................................................................................................... 88 d. Gross Revenue Exceptions ............................................................................................... 90 e. Bidding Consortia............................................................................................................. 92 3. Installment Payments .............................................................................................................. 93 I. Tribal Lands Bidding Credit .......................................................................................................... 94 J. Provisions Regarding Former and Current Defaulters................................................................... 95 K. Optional Applicant Status Identification...................................................................................... 102 L. Minor Modifications to Short-Form Applications....................................................................... 103 M. Maintaining Current Information in Short-Form Applications.................................................... 109 III. PRE-AUCTION PROCEDURES ...................................................................................................... 110 A. Online Auction Tutorial – Available August 28, 2014................................................................ 110 B. Short-Form Applications – Due Prior to 6:00 p.m. ET on September 12, 2014.......................... 114 C. Application Processing and Minor Corrections........................................................................... 117 D. Upfront Payments – Due October 15, 2014................................................................................. 120 1. Making Upfront Payments by Wire Transfer........................................................................ 121 2. FCC Form 159....................................................................................................................... 125 3. Upfront Payments and Bidding Eligibility............................................................................ 126 E. Applicant’s Wire Transfer Information for Purposes of Refunds of Upfront Payments ............. 133 F. Auction Registration.................................................................................................................... 134 G. Remote Electronic Bidding.......................................................................................................... 138 H. Mock Auction – November 10, 2014 .......................................................................................... 140 IV. AUCTION .......................................................................................................................................... 142 A. Auction Structure......................................................................................................................... 143 1. Simultaneous Multiple Round Auction................................................................................. 143 2. Single Auction with a Single Set of Procedures and Requirements for the Unpaired