Federal Register - June 23, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 118 / Wednesday, June 23, 2021 / Rules and Regulations
bidding process for all Auction 110
participants, OEA and WTB adopt the following procedures proposed in the Auction 110 Comment Public Notice:
Establishment of bidding credit caps for eligible small businesses, very small businesses, and rural service providers in Auction 110;
designation of AT&T, T-Mobile, and Verizon Wireless as nationwide providers for purposes of the prohibition of certain communications;
use of anonymous bidding/limited information procedures which will not make public until after bidding has closed: 1 The PEAs that an applicant selects for bidding in its short-form application FCC Form 175, 2 the amount of any upfront payment made by or on behalf of an applicant for Auction 110, 3 an applicants bidding eligibility, and 4 any other biddingrelated information that might reveal the identity of the bidder placing a bid;
establishment of an additional default payment of 15% under section 1.2104g2 of the rules in the event that a winning bidder defaults or is disqualified after the auction;
a specific upfront payment amount for products available in Auction 110;
establishment of a bidders initial bidding eligibility in bidding units based on that bidders upfront payment through assignment of a specific number of bidding units for each generic block;
establishment of a single aggregate reserve price for the auction to ensure that total cash proceeds from the auction equal at least $14,775,354,330;
use of a simultaneous stopping rule for Auction 110, under which all blocks in both categories in all PEAs would remain available for bidding until the bidding stops in every PEA;
use of a clock auction format for Auction 110 under which each qualified bidder will indicate in successive clock bidding rounds its demands for categories of generic blocks in specific geographic areas. Categories are determined based on the framework set forth in the 3.45 GHz Second Report and Order, in which the lower frequency bands are affected differently than the upper frequency bands in certain PEAs in the band;
permission for bidders to make two types of bids: Simple bids and switch bids. A simple bid indicates a desired quantity of blocks in a product at a price either the clock price or an intra-round price. A switch bid allows the bidder to request to move its demand for a quantity of blocks from Cat1 to Cat2, or vice versa, within the same PEA at a price for the from category either the clock price or an intra-round price;
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use of an activity rule that would require bidders to be active on between 90% and 100% of their bidding eligibility in all regular clock rounds;
use of an activity rule that does not include a waiver of the rule to preserve a bidders eligibility;
a specific minimum opening bid amount for products available in Auction 110;
establishment of acceptable bid amounts, including clock price increments and intra-round bids, along with a proposed methodology for calculating such amounts;
establishment of a methodology for processing bids and requests to reduce and increase demand subject to the no excess supply rule for bids to reduce demand and the eligibility rule for bids to increase demand; and establishment of an assignment phase that will determine which frequency-specific licenses will be won by the winning bidders of generic blocks during the clock phase.
256. The procedures for the conduct of Auction 110 constitute the more specific implementation of the competitive bidding rules contemplated by parts 1 and 27 of the Commissions rules and the underlying rulemaking orders, including the 3.45 GHz Second Report and Order, and relevant competitive bidding orders, and are fully consistent therewith.
257. Summary of Significant Issues Raised by Public Comments in Response to the Supplemental IRFA. RWA filed comments that address issues discussed in the Supplemental IRFA. RWA argues that the Commissions analysis in the Auction 110 Comment Public Notices Supplemental IRFA underestimates the costs that small and rural entities incur when participating in an FCC auction.
RWA states that, contrary to the Commissions expectations, small and rural providers regularly consult attorneys, engineers, and consultants to participate in Commission auctions, incurring costs of up to $100,000 on average per auction. However, RWA
provides no support for this cost figure.
Nor does RWA clarify what portion of this figure represents costs associated with applying to participate in the auction and/or whether the figure may be an aggregate amount for all of its trade association members. RWA also claims that the educational materials provided by the Commission are insufficient, as some materials are not provided until after the short-form application deadline.
258. Response to Comments by the Chief Counsel for Advocacy of the Small Business Administration. Pursuant to the Small Business Jobs Act of 2010,
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which amended the RFA, the Commission is required to respond to any comments filed by the Chief Counsel for Advocacy of the SBA and to provide a detailed statement of any changes made to the proposed procedures as a result of those comments. The Chief Counsel did not file any comments in response to the procedures that were proposed in the Auction 110 Comment Public Notice.
259. Description and Estimate of the Number of Small Entities to Which the Rules Will Apply. The RFA directs agencies to provide a description of, and, where feasible, an estimate of the number of small entities that may be affected by the rules and policies adopted herein. The RFA generally defines the term small entity as having the same meaning as the terms small business, small organization, and small governmental jurisdiction.
In addition, the term small business has the same meaning as the term small business concern under the Small Business Act. 5 U.S.C. 6013.
Pursuant to 5 U.S.C. 6013, the statutory definition of a small business applies unless an agency, after consultation with the Office of Advocacy of the Small Business Administration and after opportunity for public comment, establishes one or more definitions of such term which are appropriate to the activities of the agency and publishes such definitions in the Federal Register. A small business concern is one which: 1 Is independently owned and operated, 2
is not dominant in its field of operation, and 3 satisfies any additional criteria established by the SBA.
260. As noted above, Regulatory Flexibility Analyses were incorporated into the 3.13.55 GHz R&O and FNPRM
and the 3.45 GHz Second Report and Order. These orders provide the underlying authority for the procedures proposed in the Auction 110 Comment Public Notice and are adopted herein for Auction 110. In those regulatory flexibility analyses, the Commission described in detail the small entities that might be significantly affected. In the Auction 110 Procedures Public Notice, in the Supplemental FRFA, OEA
and WTB incorporate by reference the descriptions and estimates of the number of small entities from the previous Regulatory Flexibility Analyses in the 3.13.55 GHz R&O and FNPRM and the 3.45 GHz Second Report and Order.
261. Description of Projected Reporting, Recordkeeping, and Other Compliance Requirements for Small Entities. The Commission designed the auction application process to minimize
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