Auction 73: 700 MHz Band

General information and associated licensing parameters are provided below. Public notices provide specific information regarding this auction. This fact sheet includes:

 

For a complete list of the licenses available in Auction No. 73, see Attachment A of Public Notice DA 07-4171, released October 5, 2007.

The Commission has directed the Bureau to adopt a separate aggregate reserve price for each block of 700 MHz Band licenses in Auction 73. If licenses initially offered are not assigned because the auction results do not satisfy the applicable block-specific aggregate reserve price(s), the Commission will promptly offer alternative licenses for the relevant blocks in a subsequent auction, subject to the same reserve prices. In the event that any licenses are offered in contingent subsequent bidding, that event will be designated as Auction 76. In Auction 76, the Commission will offer licenses for the A, B, and E Blocks subject to alternative performance requirements. If contingent subsequent bidding is necessary for licenses for the C Block, the Commission will offer C Block licenses without open platform conditions and based on different geographic areas and spectrum bandwidth (see Attachment B of Public Notice DA 07-4171). If the license for the D Block is not sold in Auction 73, the Commission may re-offer the D Block license subject to the same rules or reconsider the applicable rules. Only qualified bidders from Auction 73 will be permitted to participate in Auction 76, if it is necessary to conduct Auction 76.
 

The 700 MHz Band licenses may be used for flexible fixed, mobile, and broadcast uses, including fixed and mobile wireless commercial services (including FDD- and TDD-based services); fixed and mobile wireless uses for private, internal radio needs; and mobile and other digital new broadcast operations. These uses may include two-way interactive, cellular, and mobile television broadcasting services.
 

The nationwide D Block licensee must provide signal coverage and offer service to (1) at least 75 percent of the population of the license area by the end of the fourth year, (2) at least 95 percent of the population by the end of the seventh year, and (3) at least 99.3 percent of the population by the end of the tenth year. These three construction benchmarks will take effect beginning on February 17, 2009. Moreover, the nationwide D Block licensee must meet the construction benchmarks based on the build-out schedule specified in the NSA. If the licensee fails to meet a construction benchmark, the Commission may cancel its license, depending on the circumstances.
 

Bidding credits are not cumulative. Qualifying applicants receive either the 15 percent or the 25 percent bidding credit on its winning bids, but not both.
 

A winning bidder that intends to use its license(s) to deploy facilities and provide services to federally-recognized tribal lands that are unserved by any telecommunications provider or that have a wireline penetration rate equal to or below 85 percent may be eligible to receive a tribal land bidding credit as set forth in 47 C.F.R. §§ 1.2107(e) and 1.2110(f). A tribal land bidding credit is in addition to, and separate from, any other bidding credit for which a winning bidder may qualify. A winning bidder need not qualify for a small business bidding credit to be eligible for a tribal land bidding credit.
 

The Commission grandfathered an incumbent guard band licensee in Major Economic Areas (MEAs) 21 and 39 at 761-763 MHz and 791-793 MHz of the D Block. The new D Block licensee will be authorized on a secondary basis at 761-763 MHz and 791-793 MHz in these markets and may not cause interference to the primary operations of the grandfathered licensee. If the grandfathered licensee, or a successor or assignee, cancels either of the grandfathered licenses, or if either license cancels automatically, is terminated by the Commission, or expires, then the licensed geographic area will revert to the D Block licensee automatically.
 

Consistent with a statutory mandate to promote the recovery of a portion of the value of the public spectrum resource, the Commission directed the Bureau to adopt aggregate reserve prices reflecting the potential market value of this spectrum based on a variety of factors. If the auction results in a block do not satisfy the relevant aggregate reserve price, none of the licenses for the particular block will be assigned based on the auction results. The Commission will promptly offer licenses in blocks that do not meet the reserve price in a contingent subsequent auction (Auction 76) subject to the terms and conditions established in the public notice announcing the procedures for Auctions 73 and 76.