November 29, 1994 COMMERCIAL MOBILE RADIO SERVICE INFORMATION IMPORTANT BIDDING INSTRUCTIONS AND OTHER INFORMATION REGARDING THE AUCTION OF 99 BROADBAND PCS LICENSES COMMENCING DECEMBER 5, 1994 This Public Notice provides additional information concerning the procedures for the auction beginning December 5, 1994 of 99 licenses to provide Personal Communications Services in the 2 GHz band (broadband PCS) over Major Trading Areas. As previously announced, qualified bidders will have three options for submitting and withdrawing bids. Bids may be submitted or withdrawn in the following ways: 1) electronically using the computer bidding terminals on-site at the FCC auction facility at The Postal Square Building, 2 Massachusetts Avenue, N.E., Washington, D.C. (entrance on North Capitol Street); (2) electronically from remote locations through the FCC BIDDER ONLINE software using a personal computer and modem; and (3) telephonically by calling an FCC bid assistant located at the FCC's auction facility. Remote access bidding is offered strictly as a convenience to bidders. All remote access bidders are solely responsible for monitoring auction announcements and ensuring that their bids are submitted during the specified bid submission periods and that high bid withdrawals are submitted during the specified bid withdrawal periods. As a precautionary measure, we strongly urge that all bidders who elect to bid by remote access ensure that at least one of their authorized bidders is present in Washington, D.C. during the auction. Registration On-site registration for the auction will be held on Sunday, December 4, 1994 at The Postal Square Building from 1:00 p.m. until 9:00 p.m. A demonstration of the auction computer system will be held on-site from 4:00 p.m. until 6:00 p.m. On-site registration will also be provided on Monday, December 5, 1994 from 9:00 a.m. until 11:30 a.m. All qualified bidders must register to receive the login codes and passwords needed to participate in the auction. Qualified bidders who have registered to bid electronically or by telephone from remote locations are not required to register in person unless they intend to bid on-site. Bidders who have elected to bid either telephonically or electronically from remote locations will receive registration materials prior to the auction in the manner requested on the FCC BIDDER ONLINE Order Form or the Telephonic Bidding Request Form. Auction Procedures The following procedures will be followed for each method of bidding: 1. Bidding On-site Bidders wishing to bid on-site in Washington will be required to have one of the authorized representatives identified on their FCC Form 175 application register in person at the auction site. (This is true even if the bidder has already registered for remote electronic or telephonic bidding.) During registration bidders will receive their system login code, password and bidder identification number. Registration for on-site bidders will be held at The Postal Square Building on Sunday, December 4, 1994 from 1:00 p.m. until 9:00 p.m. ET and on Monday, December 5, 1994 from 9:00 a.m. until 11:00 a.m. ET. The Commission strongly urges bidders wishing to bid on-site to register on Sunday, December 4, 1994. Bidders electing to bid on-site will place their bids electronically using one of the private computer bidding terminals located in The Postal Square Building. Bids may be submitted only during bid submission periods and must be submitted before the conclusion of the bid submission period. High bids may be withdrawn only during bid withdrawal periods. Bidders will be able to print a hard copy of their intended bids prior to submission and also may print a confirmation after submitting bids or after withdrawing a high bid. All FCC auction announcements will be made orally in the bidding room. The FCC will announce the schedule for the bid submission and bid withdrawal periods at the beginning of each round. The FCC will make a further announcement if a period is to be extended. If a period is extended, the "time remaining" clocks on the screens in the bidding room will automatically be refreshed to reflect the change. Round results will be provided after the bid submission period and after the bid withdrawal period on the monitors located in the bidding room. Hard copies of the round results will also be available on-site within fifteen minutes after the close of each period. 2. Electronic Bidding From Remote Locations Qualified bidders who have completed and returned the FCC BIDDER ONLINE Order Form provided in the Bidder Information Package will have the option of bidding electronically from remote locations during the auction. Applicants who have submitted the FCC BIDDER ONLINE Order Form and have requested mail-in registration will not be required to register in person for the auction unless they also intend to bid on-site. Qualified bidders registering to bid electronically from remote locations will receive their system login code and password with their software kit in the manner requested on the registration form. For security reason, the bidder identification number will be mailed separately. Lost access codes can only be replaced on-site by one of the authorized representatives designated on a bidder's FCC Form 175 application. If you intend to bid electronically from a remote location and you lose any of your codes, you are required to replace your codes on-site and will not be allowed to bid electronically for the remainder of the auction. You may, however, bid on-site or telephonically. Remote electronic bidders must submit their bids before the conclusion of the bid submission period. Bids may be withdrawn only during the bid withdrawal period. You may print a hard copy of your intended bids prior to submission to ensure that you have keyed in your bids correctly. After you submit or withdraw a bid you will have the opportunity to request a confirmation which can be printed or downloaded in a text file. If you have difficulty downloading or printing your bid submission or bid withdrawal confirmation, a fax copy bid confirmation can be obtained by calling Business Information Network at (301) 248- 1604. An FCC staff member will be on-site at Business Information Network during the course of the auction to oversee the remote bidding process. Remote electronic bidders should be aware that the numeric keypad on the keyboard does not function with the remote access software. To key in a bid, remote bidders must use the numeric keys on the top of the main keyboard. To receive auction results of the current round, you must exit to the main menu and then enter the round results option. Round results will be available approximately five minutes after the conclusion of each period. An announcement will be posted to notify you that round results are available. If you are within the round results option when the announcement is posted and the results are showing not available, you must press to return to the main menu and select the round results option again. Remote electronic bidders should carefully read the FCC BIDDER ONLINE User's Manual. The User's Manual can be accessed on-line by selecting that option from the main menu. For customer service or technical support during the auction, contact Business Information Network at: Customer Service: (301) 248-1600 Technical Support: (301) 248-1604 All FCC announcements will be posted by system alert to remote bidders. Bidding schedules will be available in the "Auction Announcements" option on the main menu. All messages will also be available in text (.txt) files on Internet and on the FCC Bulletin Board Service. A countdown clock will notify bidders how much time remains in each period. The FCC will issue a system alert message notifying remote electronic bidders of any extensions in bid submission or bid withdrawal periods. If a period is extended, the countdown clock on the bid submission and bid withdrawal screens will be refreshed to reflect the change. In the event of a problem with the FCC BIDDER ONLINE system, or if a remote electronic bidder experiences difficulty using the system, bids may be submitted or withdrawn telephonically as described below. 3. Telephonic Bidding All qualified bidders have the option of bidding by telephone from remote locations during the auction. Telephonic bidders who have completed and returned the Telephonic Bidding Request Form will not be required to register in person for the auction. Bidders registering to bid telephonically from remote locations will receive their login code and system password and bidder identification number in the manner requested on the Telephonic Bidding Request Form. To ensure the security of these codes, the bidder identification will be delivered separately from the login code and password. Lost codes may only be replaced at the FCC auction facility at The Postal Square Building, 2 Massachusetts Avenue, N.E., Washington, D.C., and replacement codes will be given only to an representative designated on the bidder's FCC Form 175 application. All bids must be submitted before the conclusion of the bid submission period and all withdrawals must be submitted during the bid withdrawal period. To submit or withdraw a bid telephonically, bidders must call the FCC Bidding Line at 1-800-432-2110 or, if calling from a location within Washington, D.C., at 202-414-1260 during the applicable period. An FCC bid assistant will request your login code, password, FCC account number, bidder identification number, name and fax number. After this information has been provided, the operator will inform you of the time remaining in the current period. The bid assistant will then review your current eligibility and inquire whether you would like to submit or withdraw a bid, exercise an activity rule waiver, or override an activity rule waiver. If you wish to submit a bid, you must provide the bid operator with the Market Number and Frequency Block for each license on which you wish to bid. The bid assistant will identify the minimum accepted bid for each license and request the amount you would like to bid on each license. If your total bids fall below the required activity level, you will be notified as to the amount of the shortfall and the amount your eligibility will be reduced in the next round before your bid is submitted. If you have waivers remaining, the bid assistant will ask you whether you would like to use a waiver. If you intend to reduce your eligibility and do not want to use a waiver, you may choose not to apply an automatic waiver. If you do not have any waivers remaining the operator will inform you of the amount that your eligibility will be reduced in the next round. Before submitting your bids, the bid operator will review your bids on each license. You may request that a copy of your proposed bids be sent to you via facsimile. After your bid or waiver has been submitted, a confirmation will be faxed to you at the fax number provided. High bids may be withdrawn during the bid withdrawal period by following these same procedures. For security reasons, all telephonic bidding will be tape recorded. As explained below, auction announcements and round results will be available to telephonic bidders over the FCC BIDDER ONLINE system, the Internet and the FCC Bulletin Board Service (BBS). Telephonic bidders will not be able to receive round results information from the FCC bid assistants. Bidding Schedule Opening ceremonies will begin at 11:00 a.m. on December 5, 1994 at the FCC auction facility. Because of space limitations, only two authorized representatives (or one authorized representative and one guest) per bidder will be admitted to the opening ceremonies. One round of bidding will be conducted on the first day of the auction. The schedule for that day will be as follows: 12:00 noon - 3:00 p.m. ET Bid Submission Period 3:00 p.m. - 3:20 p.m. ET Submission Round Results 3:20 p.m. - 3:40 p.m. ET Bid Withdrawal Period 3:40 p.m. - 4:00 p.m. ET Withdrawal Round Results The FCC will determine the pace of the auction based upon its monitoring of the bidding and its assessment of the auction's progress. The Commission expects that multiple rounds of bidding will be conducted on some subsequent days of the auction, perhaps as soon as the second day of bidding. The lengths of bid submission and bid withdrawal period are also subject to change. Bidders will be given ample notice of any changes in the pace of the auction. All bidders, whether on-site or remote, should ensure that they have adequate time to submit their bids or to withdraw their high bids. The Commission is under no obligation to extend bid submission or bid withdrawal periods once the time remaining in the period has elapsed. Bid submissions and high bid withdrawals submitted after a period has closed will not be accepted. Eligibility Calculation The FCC's auction system will calculate bidders' eligibility in terms of MHz-pops as follows: In Stage I of the auction, the required activity level will be calculated by dividing the current maximum eligibility by 3. This amount will be displayed on the screen along with your current maximum eligibility amount. If your bids are below the required activity level, your maximum eligibility will be reduced in the next round. Your next round eligibility will be calculated by multiplying your current round activity by 3. In Stage II of the auction, the required activity level will be calculated by dividing the current maximum eligibility by 1.5. This amount will be displayed on the screen along with your current maximum eligibility amount. If your bids are below the required activity level, your maximum eligibility will be reduced in the next round. Your next round eligibility will be calculated by multiplying your current round activity by 1.5. In Stage III of the auction, the required activity will be equal to the current maximum eligibility. If your bids are below the required activity level, your maximum eligibility will be reduced in the next round to the amount of your actual activity. A bidder's activity for purposes of determining whether the bidder has met the required activity level in a round will be calculated based on a bidder's bidding activity at the end of the bid withdrawal period of the previous round. Thus, if a high bidder withdraws a high bid on a license during the bid withdrawal period in Round X, that bidder will not be considered active on that license in Round X+1. (This is a change from eligibility procedures used in previous auctions.) If a bidder's total activity is below its required activity level, the system will alert the bidder, inform the bidder of the eligibility reduction that would result from submission of that set of bids, and provide options for submission or re-entering of bids. In this auction, two additional functionalities will be available to bidders during bid submission periods. While bidders are keying in bids on individual licenses during the bid submission period, but before the bids are actually submitted, the auction system will provide a running total of their current activity (in MHz-pops) as each amount is entered. Bidders also will be able to preview their bids by printing them in hard copy before submitting them to the auction system. Activity Rule Waivers Bidders will be provided with five activity rule waivers that may be used in any round during the course of the auction. If a bidder's activity level (the combination of standing high bids and current bidding activity in a round) is below the required activity level, the bidder may choose to use an activity rule waiver. This waiver will preserve your current eligibility in the next round. If a bidder fails to submit a bid in a round, and its activity level from any standing high bids falls below its required activity level, a waiver will be automatically applied. Automatic Waiver Override If a bidder's activity level is below the required activity level, but the bidder intends to permanently reduce its eligibility and does not want to use a waiver, the bidder may request an override of the activity rule waiver. However, if you use the automatic waiver override function, you will not be able to regain your previous eligibility in a future round. In addition, as noted above, if you are the high bidder on one or more licenses from a previous round, do not wish to bid in a round and your eligibility (based on your standing high bids) would be reduced, the system will automatically enter a waiver for you (assuming that you have waivers remaining). Under these circumstances, if you wish to reduce your eligibility and do not want to use a waiver, you may also request an override of the automatic waiver function from the main menu. This option will not be available if you do not have any standing high bids. This functionality may be particularly important when the auction stage transitions and required activity levels are increased. If you are the standing high bidder on one or more licenses and do not wish to bid on additional licenses, you may want to reduce your eligibility and not have the system apply an automatic activity rule waiver. By selecting bid submission from the main menu during the bid submission period, you may review your current eligibility, required activity and current activity. You are encouraged to review your required activity and current activity levels in each round so that you can determine whether you want to reduce your eligibility before an automatic waiver is applied that would preserve your current eligibility for the next round. Round Results File Formats and Internet and BBS Access As noted above, only qualified bidders will be permitted access to the auction through FCC BIDDER ONLINE. Other interested parties may monitor auction round results and FCC auction announcements over the Internet or by dialing into the BBS at (202) 682-5851. Detailed instructions for accessing auction results through the Internet and the BBS are found in the FCC's News Release, Mimeo No. 50356 (released October 24, 1994), concerning the recently-completed regional narrowband PCS auction. Internet users should login using the account name anonymous and your Internet e-mail address as your password. Internet files will be found in the /pub/PCS_Auctions/Broadband/MTA directory. Be sure to set to binary when downloading the .DBF files. The naming convention to be used for the MTA broadband PCS auction will follow the format identified in the October 24, 1994 News Release, except that the number "4" will appear in place of "3". Results will be posted after each bid submission period and each bid withdrawal period. As in previous auctions, the following reports will be available: All Bids (posted following bid submission period) High Bids (posted following both bid submission and bid withdrawal periods) Withdrawn Bids (posted following bid withdrawn period) Minimum Accepted Bid for Next Round (posted following bid withdrawal period) An additional report that has not been available in round results in our previous auctions will be provided in this auction. This report will contain information as to each bidder's maximum eligibility (in MHz-pops) and remaining waivers after each round. This profile will be posted after the bid submission period in both ASCII and DBF file formats. (The naming conventions for these files will be E4_xx.DBF or E4_xx.TXT.) These electronic files will include the identity of each bidder (applicant name and FCC account number), their current maximum eligibility for the next round and their remaining waivers. The file format consists of the following fields and lengths: Field Length bid_type 4 round_num 3 company 50 fcc_acct 10 max_elig 11 rmng_waivr 3 This information will be available over the FCC BIDDER ONLINE system, the Internet and the FCC Bulletin Board Service and in hard copy at the FCC auction facility. Obtaining Refunds of Upfront Payments An unsuccessful bidder who is not subject to bid withdrawal or default penalties is entitled to a refund of its upfront payment after the auction closes. A bidder that drops out of the bidding during the course of the auction will also be able to obtain an early refund while the auction is continuing. Once the bidder has exhausted all of its waivers and is thus foreclosed from further bidding, it should submit a request for a refund to the FCC's Billings and Collections Branch. If the bidders is not subject to any bid withdrawal or default penalties, the FCC will process the request expeditiously. Further questions with respect to obtaining refunds should be directed to the FCC's Billings and Collections Branch at (202) 418-1995. Bidder Questions During the Auction FCC auction officials will be available during the course of the auction to answer questions from bidders. On-site bidders should address questions to the FCC staff members who will be at the FCC Information Table in the auction room throughout the auction. Remote bidders (both telephonic and electronic) should call the FCC Bidder Line at 1-800-432-2110 (in Washington, D.C., call 414-1260). If the FCC staff member is unable to answer the question, or if the bidder wishes to pursue the question further, the bidders should ask to speak with either Jackie Chorney, FCC Legal Advisor for this auction, or Jonathan Cohen, Auction Director. News Media contacts: Audrey Spivack and Susan Lewis Sallet at (202) 418-0500 Office of Plans and Policy contact: Jonathan Cohen at (202) 418-2030 Office of Managing Director contacts: Regina Dorsey and Bill Koch at (202) 418-1995 - FCC -