PUBLIC NOTICE Federal Communications Commission News Media Information 202 / 418-0500 th Internet: http://www.fcc.gov 445 12 St., S.W. TTY: 1-888-835-5322 Washington, D.C. 20554 DA 15-1183 APPLICATION PROCEDURES FOR BROADCAST INCENTIVE AUCTION SCHEDULED TO BEGIN ON MARCH 29, 2016 TECHNICAL FORMULAS FOR COMPETITIVE BIDDING AU Docket No. 14-252 GN Docket No. 12-268 WT Docket No. 12-269 Released: October 15, 2015 TABLE OF CONTENTS Heading Paragraph # I. GENERAL INFORMATION ................................................................................................................ 1 A. Introduction...................................................................................................................................... 1 B. Background of Proceeding............................................................................................................... 3 II. APPLYING TO PARTICIPATE IN THE REVERSE AUCTION........................................................ 5 A. Applicable Rules and Disclaimers ................................................................................................... 6 1. Relevant Authority .................................................................................................................... 6 2. Due Diligence............................................................................................................................ 9 3. Red Light Rule ........................................................................................................................ 11 4. Use of Auction System............................................................................................................ 15 5. Fraud Alert .............................................................................................................................. 16 B. Auction Specifics........................................................................................................................... 17 1. Auction Title and Start Date.................................................................................................... 17 2. Auction 1001 Dates and Deadlines ......................................................................................... 19 3. Requirements for Qualifying to Bid........................................................................................ 20 4. Auction Delay, Suspension, or Cancellation........................................................................... 21 C. Reverse Auction Application (FCC Form 177) ............................................................................. 22 1. Authorized Bidders.................................................................................................................. 28 2. Identifying Relinquishment Bid Option(s) for Each Eligible Facility..................................... 29 3. Ownership Disclosure Requirements ...................................................................................... 32 4. National Security Certification................................................................................................ 35 5. Additional Information and Certifications Required From Applicants Intending to Channel Share.......................................................................................................................... 36 a. Channel Sharing Certifications ......................................................................................... 41 6. Provisions Regarding Pending Proceedings............................................................................ 44 7. Modifications to FCC Form 177 ............................................................................................. 49 a. Only Minor Modifications Allowed ................................................................................. 49 b. Duty to Maintain Accuracy and Completeness of FCC Form 177 ................................... 50 c. Submitting Modifications to FCC Form 177 .................................................................... 51 Federal Communications Commission DA 15-1183 D. Auction 1001 Process .................................................................................................................... 55 1. Online Auction Tutorials and Training ................................................................................... 55 2. FCC Form 177– Due Prior to 6:00 p.m. ET on December 18, 2015....................................... 58 3. Application Processing............................................................................................................ 61 4. Initial Commitment ................................................................................................................. 65 5. Qualified Bidder Registration Materials ................................................................................. 68 6. Remote Electronic Bidding ..................................................................................................... 71 7. Mock Auction.......................................................................................................................... 73 III. APPLYING TO PARTICIPATE IN THE FORWARD AUCTION.................................................... 75 A. Applicable Rules and Disclaimers................................................................................................. 76 1. Relevant Authority .................................................................................................................. 76 2. International Coordination ...................................................................................................... 78 3. Quiet Zones ............................................................................................................................. 79 4. Due Diligence.......................................................................................................................... 80 5. Use of Auction System............................................................................................................ 83 6. Fraud Alert .............................................................................................................................. 84 7. Environmental Review Requirements..................................................................................... 87 B. Auction Specifics........................................................................................................................... 88 1. Auction Title and Start Date.................................................................................................... 88 2. Auction 1002 Dates and Deadlines ......................................................................................... 89 3. Requirements for Participation................................................................................................ 90 4. Auction Delay, Suspension, or Cancellation........................................................................... 91 C. Forward Auction Application (FCC Form 175) ............................................................................ 92 1. Authorized Bidders.................................................................................................................. 98 2. License Area Selection............................................................................................................ 99 3. Qualification to Bid on Market-Based Spectrum Reserve .................................................... 100 a. Accounting for Cellular License Areas in Calculating Below-1-GHz Spectrum Holdings in a PEA .......................................................................................................... 102 b. Required Certification of Eligibility for Reserved Spectrum ......................................... 104 c. Effect of Relationships between a Non-Nationwide Provider and a Nationwide Provider........................................................................................................................... 106 4. Disclosure of Agreements Related to Licenses Being Auctioned......................................... 108 5. Ownership Disclosure Requirements .................................................................................... 114 6. Foreign Ownership Disclosure Requirements....................................................................... 116 7. National Security Certification.............................................................................................. 117 8. Provisions for Small Businesses and Rural Service Providers.............................................. 118 a. Small Business Bidding Credit ....................................................................................... 120 b. Rural Service Provider Bidding Credit........................................................................... 123 c. Caps on Bidding Credits................................................................................................. 125 d. Attributable Interests....................................................................................................... 126 (i) Controlling Interests and Affiliates .......................................................................... 126 (ii) Limitation on Spectrum Use..................................................................................... 131 (iii) Exceptions from Attribution Rules for Small Businesses and Rural Service Providers..................................................................................................................