August 29, 1994 COMMON CARRIER PUBLIC MOBILE SERVICES INFORMATION AUCTION NOTICE FOR 30 PAIRED REGIONAL LICENSES FORM PERSONAL COMMUNICATIONS SERVICES IN THE 900 MHZ BAND FIRST AMENDMENT TO PUBLIC NOTICE DATED AUGUST 17, 1994 REPORT NO. AUC-94-03, AUCTION NO. 3 1. Modification to the Activity Rule. The Federal Communications Commission (FCC) issued a Public Notice on August 17, 1994 that described auction procedures for 30 paired regional licenses for personal communications services in the 900 MHz band (narrowband PCS). In that Notice, the Commission stated that it would impose an activity rule with three stages, and that in the third stage, a bidder who wishes to maintain its current eligibility is required to be active on licenses encompassing 100% of the MHz-pops for which it is eligible. To provide bidders greater flexibility to pursue alternative backup strategies, the Commission has now decided that, if it implements stage three, a bidder who wishes to maintain its current eligibility will be required to be active on licenses encompassing only 90% of the MHz-pops for which it is eligible. Failure to maintain the requisite activity level in stage three will results in the loss of 1.11 (1 1/9) MHz-pops in eligibility for each MHz-pop below the required activity level. (over) - 2 - 2. Proactive Waivers. In the Public Notice, dated August 17, 1994, the Commission stated that it may allow a bidder to submit a proactive waiver which would keep the auction open in a round in which there are no new valid bids. The Commission has decided to permit bidders the option of proactively entering a waiver during the bid submission period. If a bidder submits a proactive waiver in a round in which no other bidding activity occurs, the auction will remain open. Therefore in the later rounds of the auction, if a bidder does not intend to bid but wants to ensure that the auction does not close, it should enter a proactive waiver in place of a bid. The submission of a proactive waiver under these circumstances will prevent the auction from closing. Bidders will be still limited to one activity rule waiver (either automatically applied by the FCC or proactively submitted by the bidder) in each stage of the auction. - FCC -