Federal Register - March 4, 2021

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Source: Federal Register

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Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Proposed Rules auction. However, if a construction permit for which a bid has been withdrawn does not receive a subsequent higher bid or winning bid in the same auction, the Commission cannot calculate the final withdrawal payment until that construction permit receives a higher bid or winning bid in a subsequent auction. In such cases, when that final withdrawal payment cannot yet be calculated, the Commission imposes on the bidder responsible for the withdrawn bid an interim bid withdrawal payment, which will be applied toward any final bid withdrawal payment that is ultimately assessed.
45. The percentage amount of the interim bid withdrawal payment is established in advance of bidding in each auction and may range from 3% to 20% of the withdrawn bid amount. The Commission has determined that the level of interim withdrawal payment in a particular auction will be based on the nature of the service and the inventory of the licenses being offered. The Commission noted specifically that a higher interim withdrawal payment percentage is warranted to deter the anti-competitive use of withdrawals when, for example, bidders will not need to aggregate the licenses being offered in the auction or when there are few synergies to be captured by combining licenses. In light of these considerations with respect to the construction permits being offered in this auction, OEA and MB propose to use the maximum interim bid withdrawal payment percentage permitted by 47 CFR 1.2104g1 in the event bid withdrawals are allowed in this auction. OEA and MB request comment on using 20% for calculating an interim bid withdrawal payment amount in Auction 109. Commenters advocating the use of bid withdrawals should also address the percentage of the interim bid withdrawal payment.
46. Post Auction Payment: Additional Default Payment Percentage. Any winning bidder that defaults or is disqualified after the close of an auction i.e., fails to remit the required down payment by the specified deadline, fails to make full and timely final payment, fails to submit a timely long-form application, or whose long-form application is not granted for any reason, or is otherwise disqualified is liable for a default payment under 47
CFR 1.2104g2. As required by 47 CFR
1.2109, this payment consists of a deficiency payment, equal to the difference between the amount of the Auction 109 bidders winning bid and the amount of the winning bid the next time a construction permit covering the
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same spectrum is won in an auction, plus an additional payment equal to a percentage of the defaulters bid or of the subsequent winning bid, whichever is less.
47. In advance of each auction, a percentage between 3% and 20% of the applicable winning bid is set pursuant to 47 CFR 1.2104g2 to be assessed as an additional default payment. As the Commission has indicated, the level of this additional payment in each auction will be based on the nature of the service and the construction permits being offered.
48. Consistent with the percentage in prior auctions of broadcast construction permits, OEA and MB propose for Auction 109 to establish an additional default payment of 20%. As the Commission has noted, defaults weaken the integrity of the auction process and may impede the deployment of service to the public, and an additional 20%
default payment will be more effective in deterring defaults than the 3% used in some earlier auctions. In light of these considerations, for Auction 109 an additional default payment of 20% of the relevant bid is proposed. OEA and MB seek comment on this proposal.
IV. Procedural Matters 49. Paperwork Reduction Act. The Office of Management and Budget OMB has approved the information collections in the Application to Participate in an FCC Auction, FCC
Form 175. OMB Control No. 30600600.
The Auction 109 Comment Public Notice does not propose new or modified information collection requirements subject to the Paperwork Reduction Act of 1995 PRA, Public Law 10413. Therefore, it does not contain any new or modified information collection burden for small business concerns with fewer than 25
employees pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107198. See 44 U.S.C.
3506c4.
50. Ex Parte Rules. This proceeding has been designated as a permit but disclose proceeding in accordance with the ex parte rules. Participants in this proceeding should familiarize themselves with the Commissions ex parte rules, especially 47 CFR 1.1200a and 1.1206.
IV. Supplemental Initial Regulatory Flexibility Analysis 51. As required by the Regulatory Flexibility Act of 1980, as amended RFA, 5 U.S.C. 601612, the Commission prepared Initial Regulatory Flexibility Analyses IRFAs in connection with the Broadcast
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Competitive Bidding Notice of Proposed Rulemaking NPRM, 62 FR 65392, December 12, 1997, and other Commission NPRMs collectively, Competitive Bidding NPRMs pursuant to which Auction 109 will be conducted. Final Regulatory Flexibility Analyses FRFAs likewise were prepared in the Broadcast Competitive Bidding Order, 63 FR 48615, September 11, 1998, and other Commission rulemaking orders collectively, Competitive Bidding Orders pursuant to which Auction 109 will be conducted. The Office of Economics and Analytics OEA, in conjunction with the Media Bureau MB, has prepared this Supplemental Initial Regulatory Flexibility Analysis Supplemental IRFA of the possible significant economic impact on small entities of the policies and rules addressed in the Auction 109 Comment Public Notice, to supplement the Commissions Initial and Final Regulatory Flexibility Analyses completed in the Competitive Bidding NPRMs and the Competitive Bidding Orders pursuant to which Auction 109 will be conducted. Written public comments are requested on this Supplemental IRFA. Comments must be identified as responses to the Supplemental IRFA and must be filed by the same filing deadlines for comments specified on the first page of the Auction 109 Comment Public Notice. Pursuant to 5 U.S.C. 603a, the Commission will send a copy of the Auction 109 Comment Public Notice, including this Supplemental IRFA, to the Chief Counsel for Advocacy of the Small Business Administration SBA.
52. Need for, and Objectives of, the Public Notice. The proposed procedures for the conduct of Auction 109 as described in the Auction 109 Comment Public Notice would constitute the more specific implementation of the competitive bidding rules contemplated by Parts 1 and 73 of the Commissions rules, adopted by the Commission in multiple notice-and-comment rulemaking proceedings, including the Commissions establishing in the underlying rulemaking orders additional procedures to be used on delegated authority. More specifically, the Auction 109 Comment Public Notice seeks comment on proposed procedures, terms and conditions governing Auction 109, and the post-auction application and payment processes, as well as seeking comment on the minimum opening bid amounts for the specified construction permits, and is fully consistent with the underlying rulemaking orders, including the Broadcast Competitive Bidding Order
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Federal Register - March 4, 2021

TitoloFederal Register

PaeseStati Uniti

Data04/03/2021

Conteggio pagine292

Numero di edizioni7799

Prima edizione14/03/1936

Ultima edizione22/06/2026

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