In an Auction 108 auction, a provisionally winning bid will be retained until a higher bidder comes along in a subsequent round. The winning bidder may then withdraw their bid. As long as the winning bidder withdraws their bid, they are not required to pay. However, the provisionally winning bid will count toward their activity rule. The rules and regulations for Auction 108 allow bidders to withdraw their bids.
The Commission is seeking comment on the bidding procedures. In particular, it seeks comment on the use of MEAs, EAs, and REAGs as relevant “regions” in the auction. The Commission will consider all comments submitted to its Request for Comments before it issues a final rule.
The FCC has also released maps of current incumbents in the 2.5 GHz band. These maps are interactive and show the number of channels occupied by current incumbents. The FCC’s Map of Category C1 (or Block 1) licenses is color-coded according to the number of channels currently occupied by incumbents.
The Commission is also seeking comment on the Auction 108 auction design. The Commission would like to know how well price discovery works in this auction. The Commission will also need to know if it should adopt a multiple-round auction format. The multi-round format would require more time but may be more advantageous for smaller entities.
A party filing through the postal service or commercial courier must submit the original and one copy of the filing. In addition, the filing must be addressed to the Commission’s Secretary, 9050 Junction Dr., Annapolis Junction, MD 20701. Alternatively, filings can be sent to the Commission’s office at 45 L Street NE, Annapolis Junction, MD 20701.
The Commission also proposes to impose a $10 million cap on bidding credits for rural service providers. This cap would apply to winning small businesses in PEAs of 500,000 or less. As a result, it is unlikely that the Commission will increase the maximum bidding credit for the entire auction. The proposed cap will help companies who are in a minority of the eligible bidders to obtain the spectrum they need to remain competitive.
The Commission also seeks comment on the proposed minimum opening bid amount. In addition, it proposes that the amount be calculated on a license-by-license basis. This methodology is similar to that used in single-round auctions, and would result in a minimum opening bid amount of $0.006 per MHz-pop. Applicants should explain why these minimum opening bid amounts are too low to maximize license sale. These claims should be supported with valuation analyses and suggested formulas.