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Federal Register / Vol. 86, No. 118 / Wednesday, June 23, 2021 / Rules and Regulations Block number
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LOCKBOX Leave Blank.
Payer NameEnter the name of the person or company making the payment. If the applicant itself is the payer, this entry would be the same name as in FCC Form 175.
Total Amount PaidEnter the amount of the upfront payment associated with the FCC Form 159 Revised 2/03.
Street Address, City, State, ZIP CodeEnter the street mailing address not Post Office box number where mail should be sent to the payer. If the applicant is the payer, these entries would be the same as FCC Form 175 from the Applicant Information section.
Daytime Telephone NumberEnter the telephone number of a person knowledgeable about this upfront payment.
Country CodeFor addresses outside the United States, enter the appropriate postal country code available from the Mailing Requirements Department of the U.S. Postal Service.
Payer FRNEnter the payers 10-digit FCC Registration Number FRN registered in the Commission Registration System CORES.
Applicant FRN Complete only if applicant is different than payerEnter the applicants 10-digit FRN registered in CORES.
Payment Type CodeEnter U110.
QuantityEnter the number 1.
Fee DueAmount of Upfront Payment.
Total FeeWill be the same amount as 26A.
FCC Code 1Enter the number 110 indicating Auction 110.

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26A
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Notes:
Do not use Remittance Advice Continuation Sheet, FCC Form 159C, for upfront payments.
If applicant is different from the payer, complete blocks 13 through 21 for the applicant, using the same information shown on FCC Form 175. Otherwise leave them blank.
No signature is required on FCC Form 159 for auction payments.
Since credit card payments will not be accepted for upfront payments for an auction, leave Section E blank.

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3. Upfront Payments and Bidding Eligibility 146. The Commission has delegated authority to OEA and WTB to determine appropriate upfront payments for each license being auctioned, taking into account such factors as the efficiency of the auction process and the potential value of similar licenses. An upfront payment is a refundable deposit made by each applicant seeking to participate in bidding to establish its eligibility to bid on licenses. Upfront payments that are related to the inventory of licenses being auctioned protect against frivolous or insincere bidding and provide the Commission with a source of funds from which to collect payments owed at the close of bidding.
147. Applicants that are former defaulters must pay upfront payments 50% greater than non-former defaulters.
For purposes of classification as a former defaulter or a former delinquent, defaults and delinquencies of the applicant itself and its controlling interests are included. For this purpose, the term controlling interest is defined in 47 CFR 1.2105a4i.
148. An applicant must make an upfront payment sufficient to obtain bidding eligibility on the generic blocks on which it will bid. OEA and WTB
adopt the Commissions proposal to set
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upfront payments based on MHz-pops, and that the amount of the upfront payment submitted by an applicant will determine its initial bidding eligibility, the maximum number of bidding units on which a bidder may place bids in any single round. In order to bid for a block, qualified bidders must have a current eligibility level that meets or exceeds the number of bidding units assigned to that generic block in a PEA.
At a minimum, therefore, an applicants total upfront payment must be enough to establish eligibility to bid on at least one block in one of the PEAs selected on its FCC Form 175 for Auction 110, or else the applicant will not become qualified to participate in the auction.
The total upfront payment does not affect the total dollar amount the bidder may bid.
149. In the Auction 110 Comment Public Notice, the Commission proposed to require applicants to submit upfront payments based on $0.03 per MHz-pop for PEAs 150 and $0.01 per MHz-pop for all other PEAs, subject to a minimum of $500. In response to concerns raised by commenters that calculating upfront payments and bidding units with a significant structural break between the top 50
markets and markets just outside of the top 50 has the potential to create distortions in bidding behavior, OEA
and WTB will forgo the discrete break in calculation amounts for large and small markets for upfront payment and bidding unit amounts.
150. Accordingly, OEA and WTB
adopt upfront payments for a generic block in a PEA based on $0.01 per MHzpop for all PEAs. The results of these calculations will be rounded using the Commissions standard rounding procedures for auctions: Results above $10,000 are rounded to the nearest $1,000; results below $10,000 but above
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$1,000 are rounded to the nearest $100;
and results below $1,000 are rounded to the nearest $10. The upfront payment amount per block in each PEA is set forth in the Attachment A file on the Auction 110 website at www.fcc.gov/
auction/110.
151. OEA and WTB also adopt the Commissions proposal to assign each generic block in a PEA a specific number of bidding units, equal to one bidding unit per $100 of the upfront payment. The number of bidding units per block in each PEA is set forth in the Attachment A file that lists the upfront payment amounts. The number of bidding units for one block in a given PEA is fixed, since it is based on the MHz-pops in the block, and it does not change during the auction as prices change. Thus, in calculating its upfront payment amount, an applicant must determine the maximum number of bidding units on which it may wish to bid in any single round and submit an upfront payment amount for the auction covering that number of bidding units.
In some cases, a qualified bidders maximum eligibility may be less than the amount of its upfront payment because the qualified bidder has either previously been in default on a Commission construction permit or license or delinquent on non-tax debt owed to a Federal agency, or has submitted an upfront payment that exceeds the total amount of bidding units associated with the license areas it selected on its FCC Form 175. In order to make this calculation, an applicant should add together the bidding units for the number of blocks in PEAs on which it seeks to be active in any given round. Applicants should check their calculations carefully, as there is no provision for increasing a bidders eligibility after the upfront payment deadline.

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