On May 2, 2012, the Wireless Telecommunications Bureau and the Wireline Competition Bureau of the Federal Communications Commission (FCC) released specific dates and procedures that will be used for the reverse auction that will award $300 million in one-time Mobility Fund Phase I support. Auction 901, as we have previously reported, will award one-time support to carriers that commit to provide 3G or better mobile voice and broadband services in census blocks where such services are unavailable.
Auction 901 Dates:
Auction Tutorial Available (via Internet).........................................June 27, 2012
Short-Form Application (FCC Form 180)
Filing Window Opens......................................................................June 27, 2012; 12:00 noon ET
Short-Form Application (FCC Form 180)
Filing Window Deadline.................................................................July 11, 2012; 6:00 p.m. ET
Mock Auction.....................................................................................September 25, 2012
Auction Begins.................................................................................September 27, 2012
Census Block Changes
The FCC has revised the list of Census blocks available for Auction 901, after determining that some of the areas originally listed as unserved are served or will be served pursuant to a prior regulatory commitment by a carrier (e.g., a recipient of a RUS loan or BIP award). The updated summary list of eligible census blocks can be seen here.
Bidding Methodology, Eligibility
The bidding methodology for Auction 901 will be a single-round reverse format. The Commission will conduct the auction over the Internet using the FCC Auction System. Telephonic bidding will not be available for Auction 901 given the number of eligible geographic areas and the manner in which bids will be uploaded. Prospective bidders must be familiar with the specific competitive bidding rules for universal service support contained in FCC Rules 1.21000 – 1.21004, as well as the procedures, terms and conditions contained in this Public Notice, the Auction 901 Comment Public Notice, and all other public notices related to Auction 901 (AU Docket No. 12-25).1 Additionally, prospective Auction 901 bidders will find it helpful to familiarize themselves with the Commission’s general competitive bidding rules, including recent amendments and clarifications, as well as Commission decisions in proceedings regarding competitive bidding procedures, application requirements, and obligations of Commission licensees.
As the FCC stated in its November 2011 order establishing Mobility Fund Phase I, in order to participate in Auction 901 an applicant must demonstrate for the areas on which it wishes to bid that it has been designated as an eligible telecommunications carrier (ETC) and has access to the spectrum necessary to satisfy the applicable performance requirements. In addition, an applicant must certify that it is financially and technically capable of providing 3G or better service. The recent order by the Bureaus fleshes out eligibility requirements via new Form 180, which should be released shortly.
Also, pursuant to section 54.1005(b), winning bidders for Mobility Fund Phase I support are required to file an application for support, referred to as a long-form application, no later than 10 business days after the public notice identifying them as winning bidders. Shortly after bidding has ended, the Commission will issue a public notice declaring the auction closed, identifying the winning bidders, and establishing the deadline for the long-form application. Winning bidders will use the new FCC Form 680 and the FCC Auction System to submit the long-form application.
Prohibited Communications Between Bidders; Joint Bids Permissible
To ensure the integrity and competitiveness of the auction process, the FCC has reiterated that it will apply Rule 1.21002 to prohibit any applicant in Auction 901 from cooperating or collaborating with any other applicant on bids or bidding strategies. Further, an applicant may not communicate with any other applicant in any manner regarding the substance of any bid until after the post-auction deadline for winning bidders to submit applications for support. The only exception to the Prohibited Communications rule is for members of a joint bidding arrangement identified on short Form 180. The FCC confirmed that joint bids are permissible, so long as the arrangements are disclosed on Form 180.
“Red Light Rules” Apply
Applicants for Auction 901 will be subject to the FCC’s so-called “Red Light Rules” which empower the agency to withhold action for delinquent debts to the FCC. Consequently, applicants must be current on all FCC assessments and other obligations before the FCC will finally award Mobility Phase I funding. Applicants can check whether they owe the FCC at its “Red Light Display” link.
You can view the latest FCC order here.
If you would like to participate in Auction 901 please contact us.
FOOTNOTE
1 See, e.g., Auction 901 Comment Public Notice, Auction 901 Updated Blocks Public Notice.