Auction 38: Upper 700 MHz Guard Bands

Event	Date
Pre-Auction Seminar	1/4/2001
Form 175 (Short Form) Application Filing Deadline	1/12/2001; 6:00 pm ET
Upfront Payments Deadline	1/26/2001; 6:00 pm ET
Mock Auction	2/13/2001
Auction Start	2/13/2001
Auction Closed	2/21/2001

Licenses Offered

Only Guard Band Managers were permitted to participate in this auction. The Guard Band Manager is a new class of commercial licensee engaged solely in the business of leasing spectrum to third parties on a for-profit basis. The Guard Band Manager may subdivide its spectrum in any manner it chooses and make it available to system operators, or directly to end users for fixed or mobile communications. The Guard Band Manager is required to adhere to strict frequency coordination and interference rules, and control use of the spectrum so as to facilitate protection for public safety.

A total of 8 unsold licenses from Auction #33 were offered in the following Major Economic Areas (MEAs):

Market No.	Market Name	Block	Bandwidth
MEA012	Pittsburgh, PA	A	2 MHz
MEA014	Columbus, OH	B	4 MHz
MEA028	Little Rock, AR	B	4 MHz
MEA034	Omaha, NE	B	4 MHz
MEA037	Oklahoma City, OK	B	4 MHz
MEA048	Hawaii	B	4 MHz
MEA049	Guam and the Northern Mariana Islands	B	4 MHz
MEA051	American Samoa	B	4 MHz

One MEA license consisted of 2 megahertz (1 MHz paired blocks) and seven MEA licenses consisted of 4 megahertz (2 MHz paired blocks).

Permissible Operations

By Congressional direction, the Commission reallocated thirty-six megahertz of spectrum for commercial use including fixed, mobile, and broadcasting services. Six of the thirty- six megahertz were identified as Guard Bands to provide protection to public safety users. Guard band equipment must meet ACCP OOBE criteria and guard band users must comply with frequency coordination procedures. Entities that employ cellular system architecture are prohibited from operating in this bands.

License Period

In light of continued use of this spectrum by broadcasters until 2006 or later, licenses are issued for a total of approximately 14 years. The expiration date is eight years beyond the initial deadline for incumbent broadcasters to relocate to other portions of the spectrum; that is, until 1/1/15. However, if a licensee commences new broadcast-type operations on or before 1/1/06, the licensee is required to seek renewal of its license at the end of the eight-year term following commencement of such broadcast operations. All licensees meeting the substantial service requirement (see First Report and Order, WT99-168, ¶70, released 1/7/2000) will be deemed to have met renewal expectancy regardless of which construction option the licensee chose..

Performance Requirements

Under the amended performance requirement, a licensee must provide "substantial service" to its service area no later than January 1, 2015 (See 27.14(a) of the Commission's Rules). A Guard Band Manager may satisfy the substantial service requirement by leasing the predominant amount of its licensed spectrum in at least 50 percent of the geographic area covered by its license or by providing coverage to 50 percent of the population of its service area at the license-renewal mark.

Guard Band Managers are also required to file an annual report providing the Commission with basic information such as the total number of users, the number of users that are affiliates, amount of spectrum being used by each, nature of use, term of user agreements, etc. Guard Band Managers must file these reports on-line at Manager Reports.

Bidding Credits

Bidding credits are available to small and very small businesses (or consortia of small or very small businesses) as set forth in 47 C.F.R. § 27.502 . A bidding credit represents the amount by which a bidder's winning bids are discounted. The size of the bidding credit depends on the average gross revenues for the preceding three years of the bidder and its controlling interests and affiliates:

A bidder with average gross revenues of not more than $40 million for the preceding three years receives a 15 percent discount on its winning bids for Upper 700 MHz Guard Bands manager licenses ("small business")
A bidder with average gross revenues of not more than $15 million for the preceding three years receives a 25 percent discount on its winning bids for Upper 700 MHz Guard Bands manager licenses ("very small business")

Bidding credits are not cumulative. A qualifying applicant receives either the 15 percent or 25 percent bidding credit, but not both.

Tribal Land Bidding Credit

To encourage the growth of wireless services in federally recognized tribal lands the Commission has implemented a tribal land bidding credit.

For additional information on the tribal land bidding credit, including how to determine the amount of credit available, see Public Notice DA 00-2219, released September 28, 2000, entitled Wireless Telecommunications Bureau Announces Availability of Bidding Credits For Providing Wireless Services To Qualifying Tribal Lands.

Incumbents

The 700 MHz spectrum is presently encumbered by approximately 100 existing television stations, and it may remain so, to some extent, until 2006 or later. No part of the country is totally unencumbered in this band, and in some metropolitan areas, very little of this band is presently available. New geographic area licensees operating on this spectrum must comply with the co-channel and adjacent channel protection provisions of Section 90.545 of the Commission's Rules. See 47 C.F.R. § 90.545 .

Licensing Rules

No eligibility restrictions.
Guard Band Mangers must lease no more than 49.9% of its spectrum in a geographic service area to its affiliates.
Incumbent licensees are present in the band.
Guard Band spectrum is licensed in 52 Major Economic Areas (MEAs); 8 licenses are available in Auction #38.
Partitioning and/or disaggregation is permitted.
Guard Band Mangers are required to file an annual report.

Releases P

2/22/2001
PUBLIC NOTICE (DA 01-478)
700 MHz Guard Bands Auction Closes Winning Bidders Announced
This Public Notice details information concerning winning bidders, down payments, bid withdrawal payments and/or deposits, filing requirements, etc for Auction No. 38.

2/2/2001
PUBLIC NOTICE (DA 01-258)
Auction of Licenses for 700 MHz Guard Bands 5 Qualified Bidders
This Public Notice identifies 5 applicants found to be qualified to bid for the 8 licenses in the Upper 700 MHz Guard Bands spectrum auction ("Auction No. 38"). In addition, this Public Notice contains bidding instructions and other important information regarding Auction No. 38.

1/19/2001
PUBLIC NOTICE (DA 01-138)
Auction of Licenses for 700 MHz Guard Bands; Status of FCC Form 175 Applications to Participate in the Auction
This public notice announces the status of applications received by the Commission to participate in the Upper 700 MHz Guard Bands Auction (#38) scheduled to begin on Tuesday, February 13, 2001.

12/20/2000
PUBLIC NOTICE (DA 00-2849)
Auction of Licenses for the 700 MHz Guard Bands Scheduled for February 13, 2001 Pre-Auction Seminar Reminder January 4, 2001
This Public Notice announces a free pre-auction seminar for Auction No. 38 on January 4, 2001.

11/14/2000
PUBLIC NOTICE (DA 00-2571)
Auction of Licenses in the 700 MHz Guard Bands Scheduled for February 13, 2001
This Public Notice announces the auction of 8 Guard Band Manager licenses in the Upper 700 MHz Guard Bands. ("Auction No. 38").
Attachment I: xls

1/27/2000
PUBLIC NOTICE (DA 00-134)
Deadline for Final Ex Parte and Other Presentations on Issues Related to Guard Bands in the 746-764 MHz AND 776-794 MHz Spectrum Block Extended to January 31, 2000
This public notice extends the filing deadline for comments in this proceeding. Comments are now due by 7 p.m., January 31, 2000.

10/26/2000
CORRECTION TO PUBLIC NOTICE (DA 00-2291)
Correction to the Comment Due Dates for Auction of Licenses for 700 MHz Guard Bands Scheduled for February 13, 2001
This Public Notice changes the comment and reply comment dates for DA 00-2291.
pdf - text - Word
See below Public Notice DA 00-2291

10/13/2000
PUBLIC NOTICE (DA 00-2291)
Auction of Licenses for 700 MHz Guard Bands Scheduled for February 13, 2001 Comment Sought on Reserve Prices Or Minimum Opening Bids and Other Auction Procedural Issues
This Public Notice announces the auction of 8 Guard Band Manager licenses in the Upper 700 MHz Guard Bands. ("Auction No. 38")

1/7/2000
PUBLIC NOTICE (DA 00-31)
Public Comment Sought on Issues Related to Guard Bands in the 746-764 MHz and 776-794 MHz Spectrum Block (WT Docket No. 99-168)
In the First Report and Order in WT Docket No. 99-168, adopted January 5, 2000, the Commission adopted service rules, including technical, operational, and licensing rules, for 30 MHz of the 746-764 MHz and 776-794 MHz bands (700 MHz band).
pdf - text - Word

Releases L

8/20/2001
LETTER (DA 01-1941)
Letter addressed to Robert M. Gurss
This letter denies the relief sought by APCO in its Request for Clarification.

Releases O

9/14/2000
ERRATA (DA 00-2094)
Errata
This Errata clarifies the geographic licensing schemes used in the auction.

3/9/2000
SECOND REPORT AND ORDER (FCC 00-90)
Service Rules for the 746-764 and 776-794 MHz Bands, and Revisions to Part 27 of the Commission's Rules
The Second Report and Order adopts licensing, technical, and operational rules for 6 megahertz of Guard Band spectrum in the 700 MHz bands, and establishes the Guard Band Manager as a new class of commercial licensee that will broker the Guard Band spectrum to make it available to system operators or directly to end users for fixed or mobile communications, consistent with technical restrictions and frequency coordination rules specified for these bands.
See Errata DA 00-1680 issued July 28, 2000
See Errata DA 00-2094 issued September 14, 2000

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Auction 38: Upper 700 MHz Guard Bands

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