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Federal Communications Commission
1919 - M Street, N.W.
Washington, D.C. 20554
News media information 202 / 418-0500
Fax-On-Demand 202 / 418-2830
Internet: http://www.fcc.gov

Released: April 28, 1997


Balance of Winning Bids (D and E Block) and Final Down Payment (F Block) are due by May 12, 1997

Auction Event No. 11

On April 28, 1997, the Wireless Telecommunications Bureau, under delegated authority, conditionally granted the applications listed in Attachment A hereto for Basic Trading Area (BTA) licenses for the D, E, and F blocks in the 2 GHz band for Broadband Personal Communications Services (PCS). D, E, and F block applications that are not identified in this Public Notice remain pending and will be resolved by future public notice or order.

The license grants listed in Attachment A are conditioned on compliance with the payment provisions set forth below. Applicants who do not submit the required payment by the specified deadline will be considered in default and are subject to automatic license cancellation and additional default payments. Specifically, an entity in default will be assessed a default payment equal to the difference between its winning bid and the winning bid the next time the license is offered by the Commission. An additional default payment equal to three (3) percent of the lesser of the subsequent winning bid or the defaulting applicant's winning bid will also be assessed. See 47 C.F.R. §§ 1.2110(e)(2), 1.2104(g).

D and E Block Licenses

Grant of each D and E block license identified in this Public Notice is expressly conditioned on payment of the remaining balance of the applicant's winning bid within 10 business days of the date of this Public Notice (i.e., by May 12, 1997). See 47 C.F.R. §§ 1.2109(a), 24.708(a).(1)

F Block Licenses

Final Down Payment. All F block applicants identified in this Public Notice have qualified to pay for their licenses by means of a 20 percent down payment (10 percent of which was paid at the close of the auction) and installment payments. See 47 C.F.R. § 24.716(a)(2). Grant of each F block license is expressly conditioned on payment of the remaining portion of the 20 percent down payment within 10 business days of the date of this Public Notice (see Down Payment Instructions below). See 47 C.F.R. §§ 1.2110(e)(2), 24.716(a)(2).(2)

Installment Payments. Payment of the remainder of the amount due on each F block license will be made in installments in accordance with Parts 1 and 24 of the Commission's rules. All interest on these installment loans will begin to accrue on the date of grant. See 47 C.F.R. § 1.2110(e)(3)(i). Interest will be assessed at the coupon rate for ten-year U.S. Treasury obligations auctioned at the last U.S. Treasury Department auction prior to the grant of these licenses. Pursuant to the Bureau's March 31, 1997 Order concerning broadband PCS installment payment deadlines, the deadline for all installment payments by F block licensees identified in this Notice is suspended until further notice.(3)

Note and Security Agreement. For each F block license granted, the licensee will shortly receive from the United States Department of Treasury's Birmingham Financial Center four original copies of the note documenting the licensee's installment payment obligations and security agreement commemorating the Commission's security interest in the license in the event of default. The note and security agreement will include instructions on completing, signing, and return of the documents to the Treasury Department. Grant of each license is expressly conditioned on timely execution and return by the licensee of all four original copies of the note and security agreement in accordance with these instructions. Failure to comply with this condition for any license will result in automatic cancellation of the license.

Individual License Grants

Each D and E block applicant will receive its individual BTA license(s) following payment of the balance of its winning bid(s). Each F block applicant will receive its individual BTA license(s) following payment for each license of the final down payment and execution and return of the note and security agreement.

Payment Instructions

All D and E block applicants identified herein must submit to Mellon Bank the balance of their winning bids in a lump sum payment by May 12, 1997.

All F block applicants identified herein must submit to Mellon Bank additional funds to bring their total deposits with the government to TWENTY (20) PERCENT of their net winning bids by May 12, 1997.

All payments must be made in U.S. dollars, and must be in the form of a wire transfer. Payments made by wire transfer must be received by 6:00 p.m. Eastern Time, May 12, 1997. Bidders should allow sufficient time for the wire transfer to be initiated and for the transmission to be completed prior to the deadline. No personal checks, cashiers checks or other forms of payment will be accepted.(4) Payments must be accompanied by a completed FCC Remittance Advice Form (FCC Form 159). ON THE FCC FORM 159, BIDDERS MUST USE THE SAME FCC ACCOUNT NUMBER ASSOCIATED WITH THEIR FCC FORM 175.

Bidders making payments must fax a completed FCC Form 159 to Mellon Bank at (412) 236-5702 at least one hour before placing the order for the wire transfer (but on the same business day). To submit funds by wire transfer, bidders will need the following information for the FCC Form 159:

ABA Routing Number:043000261
Receiving Bank:Mellon Pittsburgh
OBI Field:(Skip one space between each information item)
LOCKBOX NO. 358850

Applicants must specify each license as a separate item on FCC Form 159 (use continuation sheet (FCC 159-C) if necessary). Applicants must place an "11" as the auction event number in Block 17 of the FCC Form 159. APPLICANTS MUST INCLUDE THE "License No." DESIGNATION(S) FOR EACH LICENSE (WHICH IS INCLUDED HEREIN) IN BLOCK 18 OF FCC FORM 159. For the "License No." designation in Block 18 of FCC Form 159, applicants should list the "License No." as it appears in the Supplemental Bidder Information Package, e.g. PBBO14C. Additional instructions and addresses for making auction payments are contained in the FCC Forms and Instructions section of the Bidder Information Package for this auction. Questions concerning the calculation and submission of final payments should be directed to Regina Dorsey or Lynwood Jenkins of the Billings and Collections Branch, at (202) 418-1995.

For further information, contact:

News Media: Wireless Telecommunications Bureau, Audrey Spivack at (202) 418-0654

Payment Questions: Office of Managing Director, Regina Dorsey at (202) 418-1995

Legal and Licensing Questions: Wireless Telecommunications Bureau, Laura Smith or Rhonda Lien at (202) 418-7240

Licensing Questions: Wireless Telecommunications Bureau, Irene Longin at (202) 418-0620

Installment Payment Questions: Wireless Telecommunications Bureau, Mark Rossetti at (202) 418-0660

Attachment A - Click Here

1. On our own motion, pursuant to Section 24.819(a)(1)(i) of the Commission's rules, we waive the five-day payment period provided in Section 24.708(a) of the rules and extend the payment period to ten days. Based on our experience in processing applications and auction payments, we conclude that extending the payment period is in the public interest because it will reduce the administrative burden on applicants while ensuring that the Commission receives timely payment. We also note that in Part 1 of the Commission's rules, the Commission has extended the payment period for such payments from five to ten business days. Order, Memorandum Opinion and Order and Notice of Proposed Rule Making, FCC 97-60, 62 Fed. Reg. 13540 (Mar. 21, 1997).

2. For the reasons discussed in note 1, supra, we also waive Section 24.819(a)(1)(i) of the Commission's rules and extend the five-day period for down payments to ten days.

3. Installment Payments for PCS Licensees, Order, DA 97-649 (rel. Mar. 31, 1997).

4. See 47 C.F.R. § 1.2110(e)(1).