******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION 445 12th Street, S.W. WASHINGTON, D.C. 20554 News Media Information: (202) 418-0500 Fax-On-Demand: (202) 418-2830 Internet: http://www.fcc.gov ftp.fcc.gov ____________________________________________________________________________________ DA 99-742 April 16, 1999 AUCTION OF 161 LOCAL MULTIPOINT DISTRIBUTION SERVICE (LMDS) LICENSES 90 Qualified Bidders Notice of License Inventory Change Report No. AUC-23-D (Auction No. 23) This Public Notice identifies the 90 applicants that have been found qualified to bid for 161 LMDS licenses in Auction No. 23, which is scheduled to begin on Tuesday, April 27, 1999. This Public Notice also contains bidding instructions and other important information regarding the auction. Prior Public Notices stated that 168 licenses would be available for bidding in Auction No. 23. However, several of those licenses were identified as being subject to ongoing proceedings. The Wireless Telecommunications Bureau recently released decisions concerning these two matters, and consequently seven licenses originally designated for auction will not be available. Attachment H of this Public Notice lists the revised inventory of licenses available in Auction No. 23 and replaces earlier lists of licenses for this auction that were attached to the LMDS Public Notice and the LMDS Auction Public Notice. Attachment A lists each of the 90 qualified bidders, their upfront payments, and maximum eligibility in bidding units. Attachment B lists the licenses that were listed on each qualified bidder's FCC Form 175. Attachment C lists those applicants that submitted FCC Form 175 applications, but did not qualify to bid in this auction. Attachment D lists the FCC Remote Bidding System Hardware and Software Requirements (Attachment D of the Status of Applications Public Notice). Attachment E contains software downloading/installing instructions for participation in the mock auction. Attachment F contains round results file formats for use during the auction. Attachment G contains instructions for accessing the FCC Network using Windows 95/98. Attachment H contains the revised list of licenses available in Auction No. 23. In order to participate effectively in the auction, qualified bidders should re-familiarize themselves with the auction rules and other information contained in Public Notices released for this auction. The following information provides additional guidance. Registration. Qualified bidders have been automatically registered for the auction. For security reasons, the Commission will confirm registration by two separate mailings of registration materials, both sent to the contact person at the address identified in the bidder's FCC Form 175. The two mailings will include the Bidder Identification Number, Login ID, Login Password and the FCC Account Number. The second mailing will also include the remote bidding system software, if ordered. Upon receipt of both mailings, each bidder should be in possession of the following information: · FCC Account Number (as assigned by FCC) · Bidder Identification Number (supplied by FCC mailing) · Login ID (supplied by FCC mailing) · Login Password (supplied by FCC mailing) · Remote bidding system software, if ordered (supplied by FCC mailing) · FCC Bidder Line Telephone Number (supplied by FCC mailing) Applicants are solely responsible for ensuring the security of their computer systems, the security of their bidding codes, and that only authorized bidders place bids on their behalf. The FCC assumes no responsibility or liability for these matters. WARNING: Any unauthorized person or entity accessing or tampering with an FCC or other government computer will be prosecuted to the full extent of the law. Any applicant listed as a qualified bidder in Attachment A to this Public Notice that has not received both registration mailings by noon on Wednesday, April 21, 1999, should contact the Auctions Hotline at (717) 338-2888. It is each applicant's responsibility to ensure that all registration information has been received on time. Note: The bidding software is not needed to participate in the mock auction. Lost Login IDs, Login Passwords and Bidder Identification Numbers can be replaced only at the FCC Auction Headquarters, located at 2 Massachusetts Avenue, N.E., Washington, D.C. If replacement is necessary, either an authorized representative or the certifying official (as designated on the applicant's FCC Form 175) must appear in person with two forms of identification, one of which must be a photo identification. Electronic Bidding Software. In order to bid electronically, each qualified bidder must purchase the Commission's electronic bidding software. The software has been updated for the LMDS auction. Accordingly, software from prior auctions will not work for Auction No. 23. Bidders are advised to review the software manual included in the registration materials and participate in the mock auction to become familiar with this software. For software backup, bidders are advised to duplicate the software for use by authorized representatives at different locations. However, the FCC Remote Bidding System will not accept electronic bids from qualified bidders that are not registered purchasers of the bidding software. Bidding Contingency Plan. Bidders should develop comprehensive contingency plans they can implement quickly in case they experience difficulty participating in the auction. While the FCC will correct any problems within Commission-controlled facilities, bidders are solely responsible for anticipating and overcoming problems such as bidder technical failures, local telephone service interruptions, adverse local weather conditions, unavailability of authorized bidders, or loss or breach of confidential security codes. The FCC Remote Bidding System requires access to a 900 service telephone line. Bidders should verify in advance that the telephone systems they will be using to submit electronic bids permit access to 900 service telephone numbers, and should consult their telephone administrators if they need assistance. All filers will be supplied with a telephone number for telephonic bidding in their registration packet. Electronic bidders may use this telephone number as an alternate method of bidding in the event they are not able to submit their bids electronically. Bidding Schedule. The bidding schedule for Tuesday, April 27, 1999, and continuing until further notice, will be: Bidding Period 9:00 a.m. - 10:00 a.m. ET Round Results 10:00 a.m. - 10:30 a.m. ET Bidding Period 2:00 p.m. - 3:00 p.m. ET Round Results 3:00 p.m. - 3:30 p.m. ET The FCC will set the pace of the auction based upon its monitoring of the bidding and its assessment of the auction's progress. Generally, at the end of each week of the auction, the FCC will announce the bidding schedule for the following week. Minimum Opening Bids. There will be a minimum opening bid for each license in the LMDS auction, calculated in accordance with the formulas we have previously announced. The minimum opening bid amount is subject to reduction at the discretion of the Commission. Bidders should be aware, however, that the FCC will not entertain requests to lower minimum opening bids. The agency will exercise its discretion, if at all, independent of any communications from bidders. Messages and Announcements. The FCC will post pertinent auction information as messages and announcements on the FCC Remote Bidding System, on its Internet site and on its Bulletin Board System (BBS). Bidders should routinely check for messages and announcements each time they enter the Remote Bidding System, and should read this information carefully. Bidder Questions during the Auction. FCC auction officials and technical support staff will be available during the course of the auction to answer questions from bidders. Bidders should identify themselves as a bidder with time sensitive auction questions when calling any number. Help can be obtained through the following telephone numbers: FCC Bidder Line Use telephonic bid number (telephonic bidding, auction conduct supplied in registration mailing questions) FCC Technical Support Hotline (202) 414-1250 (all technical questions, software and hardware) FCC Auctions and Industry (202) 418-0660 Analysis Division (legal questions) Monitoring Round Results. Attachment F to this Public Notice provides instructions for reviewing and downloading round results, and other material related to the LMDS auction released by the Commission during the course of the auction. Auction Tracking Tool. The FCC has developed a tool for tracking the results of its auctions. Bidders wishing to familiarize themselves with the tool will be able to download the tool with a sample database when it becomes available. This tool will be utilized in Auction No. 23 and will be able to be used with both the mock auction and actual auction. The FCC Auction Tracking Tool will be available with the release of the Mock Auction software on the Internet at http://www.fcc.gov/wtb/auctions/auc23_1.html; a specific link will provide access to the tracking tool. The FCC Auction Tracking Tool will also be available via the FCC Auctions Bulletin Board System. The FCC Auction Tracking Tool is provided to bidders free of charge as an additional means of analyzing the auction round results. Bidders should develop back-up strategies for viewing round results that can be implemented quickly in case they experience technical difficulties with the tracking tool. The FCC Auction Tracking Tool is a stand-alone application which runs on Windows 95/98 and NT operating systems and does not require any other software, although some advanced features do require Microsoft Excel 97. The tool will allow users to import round result files and analyze bidding results after each round of the auction. For installation and use instructions see the README file and on-line help system that accompany the FCC Auction Tracking Tool. User Requirements. This software is designed to be used by a wide range of users. For most effective use of the tool, users should be familiar with: * Microsoft Windows 95/98/NT * Microsoft Excel 97 * The FCC simultaneous multiple round auction format Software and Hardware Requirements. At a minimum, you will need the following: * Microsoft Windows 95, 98 or NT. * Up to 40-50 MB of available hard disk space. For the application itself, only 2-3 MB will be necessary, but the auction database can grow quite large. * 16 MB RAM and Pentium based processor are required with 32 MB RAM and a Pentium 166 or higher are strongly recommended. * Some advanced features of the tool will require Microsoft Excel 97, but the majority of the tool's features can be used without Excel. Amendments to FCC Form 175s. Applicants are responsible for maintaining the accuracy and completeness of information furnished in their FCC Form 175 and exhibits. See 47 C.F.R  1.65. It is the staff's position that applicants should amend their applications within ten business days from the occurrence of a reportable change. Filers should make modifications to their FCC Form 175s electronically, and submit a letter briefly summarizing the changes to: Amy Zoslov Chief, Auctions & Industry Analysis Division Wireless Telecommunications Bureau Federal Communications Commission Room 4-A760 445 12th St., SW Washington, DC 20554 with a courtesy copy to Arthur Lechtman at the same address. As described in the Commission's Rules, applicants may make only minor corrections to their FCC Form 175 applications; major modifications (e.g., changing the markets applied for, changing control of the applicant or changing the certifying official) will not be accepted. See 47 C.F.R.  1.2105(b). Due Diligence. Bidders are reminded that they should continue to conduct due diligence examinations regarding incumbents and other legal developments with respect to the licenses for which they bid during the course of the auction. Mock Auction. The FCC will conduct a mock auction on Thursday, April 22, 1999, to allow qualified bidders to familiarize themselves with the electronic bidding software. The mock auction will be open only to qualified bidders. Telephonic bidding will also be available during the mock auction. Qualified bidders wishing to place telephonic bids should use the telephone number supplied in the registration materials for the auction. Pre-registration is not required to participate in the mock auction. This mock auction will include all LMDS licenses, and will follow the rules governing the LMDS auction. The mock auction will be identified as Auction No. 74. The software will assume that each bidder applied for all licenses and submitted upfront payments of $250,000.00 corresponding to 250,000 bidding units. The auction will simulate the start of Stage One, so bidders will be required to be active on at least 80 percent of their bidding units, or risk having a waiver automatically applied unless bidding eligibility is reduced. The mock auction bidding schedule for Thursday, April 22, 1999 will be: Round 1 Bidding Period 9:00 a.m. - 10:00 a.m. ET Round Results 10:00 a.m. - 10:30 a.m. ET Round 2 Bidding Period 10:30 a.m. - 11:30 a.m. ET Round Results 11:30 a.m. - 12:00 p.m. ET Break 12:00 p.m. - 1:00 p.m. ET Round 3 Bidding Period 1:00 p.m. - 1:30 p.m. ET Round Results 1:30 p.m. - 2:00 p.m. ET Round 4 Bidding Period 2:00 p.m. - 2:30 p.m. ET Round Results 2:30 p.m. - 3:00 p.m. ET Round 5 Bidding Period 3:00 p.m. - 3:30 p.m. ET Round Results 3:30 p.m. - 4:00 p.m. ET Round 6 Bidding Period 4:00 p.m. - 4:30 p.m. ET Round Results 4:30 p.m. - 5:00 p.m. ET Eligible LMDS bidders who wish to participate in the mock auction using electronic bidding must establish a PPP connection to the FCC Auction Network through either an 800 or a 900 number, as selected through the mock auction software. (The FCC strongly encourages participants to test their ability to connect using the 900 number, in order to identify any potential problems such as a 900-number telephone block. There will be no access charge for the first minute of the 900- number connection time.) When participants establish the PPP connection and start the Mock Bidding System, they will register for the mock auction by entering their FCC Account Number. The Login names, Login passwords, and Bidder Identification Numbers (BINs) will be pre-filled. Note: Pre-filled codes are for the mock auction only. For the actual LMDS auction, valid Login codes and BINs will be mailed to qualified bidders with their registration materials. Remote bidding software for the mock auction must be downloaded and will be available via the FCC's Internet and Bulletin Board System beginning Wednesday, April 21, 1999 at 1:00 p.m. E.T. See Attachment E for downloading/installing instructions. This software is specifically designed for this simulation, and is not adaptable to any other FCC spectrum auction. As part of the software, the Commission has established a suggestion box and welcomes your comments regarding the software. OTHER IMPORTANT INFORMATION Office Closing: The FCC's Headquarters office located in Washington, DC will be closed on Friday, April 23, 1999. Technical Support (202) 414-1250 and the Auctions Hotline (717) 338- 2888 will be open for questions. However, legal assistance will not be available. Long-Form Applications: Applicants that claim status as a small or very small business should be aware that at the long-form application stage, they will be subject to the more extensive reporting requirements contained in the Commission's Part 1 ownership disclosure rule. See 47 C.F.R.  1.2112(b). Also, applicants with foreign ownership interests will be required to comply with 47 U.S.C.  310(b) at the long-form application stage. For additional information regarding this Public Notice, please contact Lisa Stover or Kathy Garland, Auctions Operations Branch, Auctions & Industry Analysis Division, at (717) 338-2888 or Arthur Lechtman, Legal Branch, Auctions & Industry Analysis Division, at (202) 418-0660. Questions about software or hardware should be directed to Technical Support at (202) 414- 1250. --FCC--