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Rule2026-16133

Auction of FM Broadcasting Construction Permits Scheduled for February 2, 2027; Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments, and Other Procedures for Auction 114

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Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published

August 7, 2026

Issuing agencies

Federal Communications Commission

Abstract

This document summarizes the procedures, deadlines, and upfront payment and minimum opening bid amounts for the upcoming auction of FM broadcast construction permits. The Auction 114 Procedures Public Notice summarized here provides details regarding the procedures, terms, conditions, dates, and deadlines governing participation in Auction 114 bidding, as well as overview of the post- auction application and payment processes.

Full Text

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<title>Federal Register, Volume 91 Issue 151 (Friday, August 7, 2026)</title>
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[Federal Register Volume 91, Number 151 (Friday, August 7, 2026)]
[Rules and Regulations]
[Pages 51075-51098]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-16133]

[[Page 51075]]

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1 and 73

[AU Docket No. 26-105; DA 26-798; FR ID 360879]

Auction of FM Broadcasting Construction Permits Scheduled for
February 2, 2027; Notice and Filing Requirements, Minimum Opening Bids,
Upfront Payments, and Other Procedures for Auction 114

AGENCY: Federal Communications Commission.

ACTION: Final action; requirements and procedures.

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SUMMARY: This document summarizes the procedures, deadlines, and
upfront payment and minimum opening bid amounts for the upcoming
auction of FM broadcast construction permits. The Auction 114
Procedures Public Notice summarized here provides details regarding the
procedures, terms, conditions, dates, and deadlines governing
participation in Auction 114 bidding, as well as overview of the post-
auction application and payment processes.

DATES: Applications to participate in Auction 114 must be submitted
prior to 6:00 p.m. Eastern Time (ET) on September 30, 2026. Upfront
payments for Auction 114 must be received prior to 6:00 p.m. ET on
December 3, 2026. Bidding in Auction 114 is scheduled to start on
February 2, 2027.

FOR FURTHER INFORMATION CONTACT:
General Auction 114 Information: FCC Auctions Hotline at (888) 225-
5322, option two; or (717) 338-2868; or <a href="/cdn-cgi/l/email-protection#d1b0a4b2a5b8bebfe0e0e591b7b2b2ffb6bea7">[email&#160;protected]</a>.
Auction 114 Legal Information: Lyndsey Grunewald at (202) 418-0660,
<a href="/cdn-cgi/l/email-protection#591520373d2a3c20771e2b2c373c2e38353d193f3a3a773e362f">[email&#160;protected]</a>.
Licensing Information: James Bradshaw at (202) 418-2700,
<a href="/cdn-cgi/l/email-protection#e1b38e858e8d878ecfa38e8f80828288a1878282cf868e97">[email&#160;protected]</a>, Rodolfo Banacci at (202) 418-2700, Lisa
Scanlan at (202) 418-2700, <a href="/cdn-cgi/l/email-protection#a8e4c1dbc986fbcbc9c6c4c9c6e8cecbcb86cfc7de">[email&#160;protected]</a>, or Ariane Rangel at
(202) 418-2700, <a href="/cdn-cgi/l/email-protection#5c1d2e353d3239720e3d323b39301c3a3f3f723b332a">[email&#160;protected]</a>.

SUPPLEMENTARY INFORMATION: This is a summary of the document in AU
Docket No. 26-105, DA 26-798 released on July 31, 2026 (Auction 114
Procedures Public Notice). The Auction 114 Procedures Public Notice
includes the following attachment: Attachment A, Construction Permits
in Auction 114. The complete text of the Auction 114 Procedures Public
Notice, including its attachment, is available on the Commission's
website at <a href="http://www.fcc.gov/auction/114">www.fcc.gov/auction/114</a> or by using the search function for
AU Docket No. 26-105 on the Commission's Electronic Comment Filing
System (ECFS) web page at <a href="http://www.fcc.gov/ecfs">www.fcc.gov/ecfs</a>. To request materials in
accessible formats for people with disabilities (braille, large print,
electronic files, audio format), send an email to <a href="/cdn-cgi/l/email-protection#d0b6b3b3e5e0e490b6b3b3feb7bfa6">[email&#160;protected]</a> or
call the Consumer and Governmental Affairs Bureau at (202) 418-0530.

I. General Information

A. Introduction

1. In the Auction 114 Procedures Public Notice, the Office of
Economics and Analytics (OEA) and the Media Bureau (MB) establish the
procedures and minimum opening bid amounts to be used for Auction 114,
an auction of FM broadcast construction permits.
2. Bidding in this auction is scheduled to start on [[February 2,
2027]]. Auction 114 will be conducted using a simultaneous multiple-
round auction format. The Auction 114 Procedures Public Notice provides
details of the procedures, terms, conditions, dates, and deadlines
governing participation in Auction 114 bidding, as well as an overview
of the post-auction application and payment processes.

B. Background and Relevant Authority

3. On May 11, 2026, OEA and MB released the Auction 114 Comment
Public Notice, 91 FR 27887 (May 15, 2026), seeking comment on
competitive bidding procedures and minimum opening bid amounts to be
used in Auction 114. Three parties filed comments to the Auction 114
Comment Public Notice. In the Auction 114 Procedures Public Notice, OEA
and MB resolve all open issues raised in the Auction 114 Comment Public
Notice. Auction 114 will proceed pursuant to the procedures described
in the Auction 114 Procedures Public Notice, which have been adopted in
accordance with 47 U.S.C. 309(j)(3), as amended (the Act).
4. Other Commission rules and decisions provide the underlying
authority for the procedures OEA and MB adopt for Auction 114. Auction
114 applicants must familiarize themselves thoroughly with the
Commission's general competitive bidding rules, including Commission
decisions in proceedings regarding competitive bidding procedures,
application requirements, and obligations of Commission licensees.
Potential applicants should also familiarize themselves with the
Commission's FM broadcast service and competitive bidding requirements
contained in part 73 of the Commission's rules, as well as Commission
orders concerning competitive bidding for broadcast construction
permits. Applicants must also be thoroughly familiar with the
procedures, terms, and conditions contained in the Auction 114
Procedures Public Notice and any future public notices that may be
released in this proceeding.
5. The terms contained in the Commission's rules, relevant orders,
and public notices are not negotiable. The Commission may amend or
supplement the information contained in its public notices at any time
and will issue public notices to convey any new or supplemental
information to applicants. It is the responsibility of all applicants
to remain current with all Commission rules and with all public notices
pertaining to this auction.

C. Construction Permits Offered in Auction 114

6. Auction 114 will offer 132 construction permits in the FM
broadcast service, which are listed in Attachment A to the Auction 114
Procedures Public Notice. The construction permits to be auctioned are
for 132 new FM allotments, including 33 construction permits that were
offered but not sold in prior auctions. These construction permits are
for vacant FM allotments reflecting FM channels added to the Table of
FM Allotments, pursuant to the Commission's established rulemaking
procedures, and assigned at the indicated communities.
7. Pursuant to the policies established in the Broadcast
Competitive Bidding Order, 63 FR 48615 (September 11, 1998), 78 FR
18527 (March 27, 2013), an applicant seeking to participate in Auction
114 may select on its short-form application (FCC Form 175) any FM
construction permit listed in Attachment A. An applicant may submit a
set of preferred site coordinates as an alternative to the reference
coordinates for the vacant FM allotment upon which the applicant
intends to bid. Detailed instructions for specifying preferred site
coordinates in an FCC Form 175 for a specific FM allotment are provided
in the Auction 114 FCC Form 175 Filing Instructions. Consistent with
the Commission's approach in previous broadcast service auctions, when
two or more short-form applications are submitted specifying the same
FM allotment in Auction 114, mutual exclusivity exists for auction
purposes, and that construction permit must be awarded by competitive
bidding procedures. Once mutual exclusivity exists for auction
purposes, even if only

[[Page 51076]]

one applicant is qualified to bid for a particular construction permit,
that applicant is required to submit a bid in order to obtain the
construction permit.
8. OEA and MB note that Attachment A to the Auction 114 Procedures
Public Notice reflects a change to the allotment coordinates for MM-
FM1193-C3, Battlement Mesa, Colorado, Channel 275C3, from those that
were listed in Attachment A to the Auction 114 Comment Public Notice.
MB staff granted station KSPN-FM's (Facility ID No. 43884, Aspen,
Colorado) minor modification application on May 29, 2026. The
application was short-spaced to the Battlement Mesa, Colorado vacant
allotment (as previously listed), and thus, KSPN-FM proposed a change
in the vacant allotment coordinates in order to be fully spaced. KSPN-
FM's application was filed on May 8, 2026, before the release of the
Auction 114 Rulemaking Freeze Public Notice, DA 26-445 (May 11, 2026).
The new Battlement Mesa, Colorado, allotment coordinates--39 degrees 27
minutes 18 seconds North Latitude, 107 degrees 59 minutes 0 seconds
West Longitude--are listed in Attachment A to the Auctions 114
Procedures Public Notice.
9. In response to the Auction 114 Comment Public Notice, three
commenters--SSR Communications (SSR), Tracy K. Wood (Wood), and William
Erickson (Erickson)--request that additional construction permits be
added to the inventory for Auction 114.
10. Enterprise, Utah Allotment: SSR requests that the Commission
include the newly allotted FM Channel 265C3 at Enterprise, Utah
(Enterprise), stating that the inclusion would serve the public
interest.
11. OEA and MB decline to add the Enterprise allotment to the
Auction 114 inventory. The Report and Order granting allocation of this
channel became effective on June 8, 2026, 91 FR 23172 (April 30, 2026).
Therefore, the Enterprise allotment was not yet effective when staff
compiled the inventory, nor was it effective when OEA and MB released
the Auction 114 Comment Public Notice on May 11, 2026. OEA and MB
anticipate that it will be included in the inventory of a future
auction of FM broadcast permits.
12. Other Vacant Allotments: SSR also requests that additional
allotments listed in two Various Location Orders from 2023 and 2024, 88
FR 12258 (February 27, 2023), 89 FR 20340 (March 22, 2024), be added to
the Auction 114 inventory.
13. OEA and MB decline to add any additional allotments from SSR's
referenced Various Location Orders. The list of vacant allotments is
constantly changing based on an ongoing process of allotment ``drop-
in'' rulemakings and license cancellation and allotment reinstatement
proceedings. Due to practical and technical limitations, including
staff resources, OEA and MB are unable to offer every vacant FM channel
designated in the Table of FM Allotments each time an auction of FM
construction permits is announced. MB staff assess a variety of factors
in compiling the auction inventory. For example, to the extent
possible, OEA and MB attempt to include allotments in a variety of
states and thus avoid an auction inventory that is unevenly
concentrated in the same geographic location. OEA and MB anticipate
that the additional vacant allotments that SSR requested will be
included in an upcoming auction of FM broadcast permits.
14. Lindsay, California and Independence, Oregon Allotments: Wood
requests that the Auction 114 construction permit inventory include FM
allotments at Lindsay, California, Channel 277B1 (Lindsay), and
Independence, Oregon, Channel 274C0 (Independence).
15. OEA and MB decline to add these two FM allotments to the
Auction 114 inventory. These two allotments were not initially included
in the Auction 114 inventory because they each had engineering defects,
and thus were not rule-compliant when staff was compiling the
inventory. These technical issues precluded reinstating the respective
channels to the Table of FM Allotments, which in turn, precluded the
vacant channels from being included in the auction inventory. OEA and
MB anticipate that they will be included in the inventory in an
upcoming auction of FM broadcast permits.
16. Whitehall, Michigan Allotment: Erickson argues that the
Whitehall, Michigan, Channel 248A (Whitehall) FM allotment should be
added to the Auction 114 inventory list because Whitehall lacks any
other service. Erickson also asserts that the Commission should include
all vacant FM frequencies.
17. The Whitehall allotment is not ripe to be included in the
Auction 114 inventory. After an authorization has been surrendered or
cancelled, the channel must be reinstated to the Table of FM
Allotments. MB staff's engineering review indicates that the now-vacant
Whitehall FM allotment requires a channel change in order to achieve a
fully spaced, rule-compliant site. A Report and Order that effects this
channel change has not yet been released. Accordingly, OEA and MB
decline to add Whitehall to the Auction 114 inventory. It may be
included in an upcoming FM auction, provided that the requisite
rulemaking proceeding is final and the allotment has been reinstated.
18. For the reasons described herein, OEA and MB conclude that it
is not in the public interest to include additional allotments in the
inventory for this auction and therefore decline to add all vacant
allotments in response to SSR's request.

D. Auction Specifics

1. Auction Title and Start Date
19. The auction of FM broadcast construction permits is referred to
as ``Auction 114.'' Bidding in Auction 114 will begin on February 2,
2027. Pre-bidding dates and deadlines are listed in the Auction Dates
and Deadlines section.
20. The initial schedule for bidding rounds in Auction 114 will be
announced by public notice at least one week before the bidding begins.
Unless otherwise announced, bidding on all construction permits will be
conducted on each business day until bidding has stopped on all
construction permits.
2. Auction Dates and Deadlines
21. The following dates and deadlines apply to Auction 114:

Auction Application Tutorial Available (via internet)--by [[August 21,
2026]]
Short-Form Application (FCC Form 175)
Filing Window Opens--[[September 14, 2026]], 12:00 p.m. Eastern Time
(ET)
Short-Form Application (FCC Form 175)
Filing Deadline--[[September 30, 2026]], 6:00 p.m. ET
Upfront Payments (via wire transfer)--[[December 3, 2026]], 6:00 p.m.
ET
Bidding Tutorial Available (via internet)--No later than [[January 6,
2027]]
Mock Auction--[[January 29, 2027]]
Auction Bidding Begins--[[February 2, 2027]]
3. Auction Delay, Suspension, or Cancellation
22. OEA and MB adopt their proposal that at any time before or
during the bidding process, OEA and MB may delay, suspend, or cancel
bidding in Auction 114 in the event of a natural disaster, technical
obstacle, network interruption, administrative or weather necessity,
evidence of an auction security breach or unlawful bidding activity, or
for any other reason that affects the fair and efficient conduct of

[[Page 51077]]

competitive bidding. This approach has proven effective in resolving
exigent circumstances in previous auctions, and OEA and MB find no
reason to depart from it here. OEA and MB will notify participants of
any such delay, suspension, or cancellation by public notice and/or
through the announcement function in the FCC Auction Bidding System
(bidding system). If the bidding is delayed or suspended, OEA and MB
may, in their sole discretion, elect to resume the auction starting
from the beginning of the current round or from some previous round, or
cancel the auction in its entirety. OEA and MB emphasize that they will
exercise the authority to delay, suspend, or cancel bidding in Auction
114 solely at their own discretion.
4. Requirements for Participation
23. Those wishing to participate in Auction 114 must:
<bullet> Submit a short-form application (FCC Form 175)
electronically prior to 6:00 p.m. ET on [[September 30, 2026]],
following the filing procedures and other instructions set forth in the
Auction 114 Procedures Public Notice and the Auction 114 FCC Form 175
Instructions;
<bullet> Submit a sufficient upfront payment and an FCC Remittance
Advice Form (FCC Form 159) by 6:00 p.m. ET on [[December 3, 2026]],
following the procedures and instructions set forth in the Auction 114
Procedures Public Notice; and
<bullet> Comply with all provisions outlined in the Auction 114
Procedures Public Notice and applicable Commission rules.

E. Education Materials

24. Before the opening of the short-form filing window for Auction
114, detailed educational information will be provided to potential
participants in various formats on the Auction 114 website.
Specifically, OEA and MB will provide educational materials on the pre-
bidding processes in advance of the opening of the short-form
application window, beginning with the Auction 114 FCC Form 175
Instructions, which will be posted at the same time as the Auction 114
Procedures Public Notice. These materials will be available in the
Education section on the Auction 114 website at <a href="http://www.fcc.gov/auction/114">www.fcc.gov/auction/114</a>. In addition, OEA and MB will provide an online application
procedures tutorial for the auction, covering information on pre-
bidding preparation, completing short-form applications, and the
application review process.
25. For the first time in a broadcast auction, applicants will use
the Commission's Auction Application System (AAS) to file applications
to participate in Auction 114. Applicants should carefully review both
the Auction 114 application tutorial and the Auction 114 FCC Form 175
Instructions, paying close attention to any departures from previous
application processes as a result of the use of the AAS for Auction
114.
26. Additionally, in advance of the start of the mock auction, OEA
and MB will provide educational materials on the bidding procedures for
Auction 114, including a user guide for the bidding system and an
online bidding procedures tutorial. These materials will provide
detailed information on bidding features specific to the simultaneous
multiple-round auction format. Accordingly, the educational materials
will be released as soon as reasonably possible in order to provide
qualified bidders with time to review them and ask questions of
Commission staff before bidding begins.
27. OEA and MB believe that parties interested in participating in
Auction 114 will find the interactive, online tutorials an efficient
and effective way to further their understanding of the application and
bidding processes. The online tutorials will allow viewers to navigate
the presentation outline, review written notes, and listen to audio of
the notes. Additional features of these web-based tools include links
to auction-specific Commission releases, email links for contacting
Commission staff, and screen shots of the online auction application
and bidding systems. The online tutorials will be accessible in the
Education section on the Auction 114 website at <a href="http://www.fcc.gov/auction/114">www.fcc.gov/auction/114</a>. Once posted, the tutorials will remain continuously accessible.

II. Pre-Bidding Activities and Considerations

A. Due Diligence

28. OEA and MB remind each potential bidder that it is solely
responsible for investigating and evaluating all technical and
marketplace factors that may have a bearing on the value of the
construction permit(s) it is seeking in this auction. The FCC makes no
representations or warranties about the use of this spectrum or these
construction permits for particular services. Applicants should be
aware that an FCC auction represents an opportunity to become an FCC
permittee in a broadcast service, subject to certain conditions and
regulations. This includes the established authority of the Commission
to alter the terms of existing licenses by rulemaking, which is equally
applicable to licenses awarded by auction. An FCC auction does not
constitute an endorsement by the FCC of any particular service,
technology, or product, nor does an FCC construction permit or license
constitute a guarantee of business success.
29. An applicant should perform its due diligence research and
analysis before proceeding, as it would with any new business venture.
In particular, OEA and MB strongly encourage each potential bidder to
perform technical analyses and/or refresh its previous analyses to
assure itself that, should it become a winning bidder for any Auction
114 construction permit, it will be able to build and operate
facilities that will fully comply with all applicable technical and
legal requirements. OEA and MB strongly encourage each applicant to
inspect any prospective transmitter sites located in, or near, the
service area for which it plans to bid, to confirm the availability of
such sites, and to familiarize itself with the Commission's rules
regarding any applicable federal, state, and local requirements.
30. OEA and MB strongly encourage each applicant to continue to
conduct its own research throughout Auction 114 in order to determine
the existence of pending or future administrative or judicial
proceedings that might affect its decision to continue participating in
the auction. Each Auction 114 applicant is responsible for assessing
the likelihood of the various possible outcomes and for considering the
potential impact on construction permits available in this auction. The
due diligence considerations mentioned in the Auction 114 Procedures
Public Notice do not comprise an exhaustive list of steps that should
be undertaken prior to participating in this auction. As always, the
burden is on the potential bidder to determine how much research to
undertake, depending upon specific facts and circumstances related to
its interests.
31. Applicants are solely responsible for identifying associated
risks and for investigating and evaluating the degree to which such
matters may affect their ability to bid on, otherwise acquire, or make
use of the construction permits available in Auction 114. Each
potential bidder is responsible for undertaking research to ensure that
any permits won in this auction will be suitable for its business plans
and needs. Each potential bidder must undertake its own assessment of
the relevance and importance of information gathered as part of its due
diligence efforts.

[[Page 51078]]

32. The Commission makes no representations or guarantees regarding
the accuracy or completeness of information in its databases or any
third-party databases, including, for example, court docketing systems.
To the extent the Commission's databases may not include all
information deemed necessary or desirable by an applicant, it must
obtain or verify such information from independent sources or assume
the risk of any incompleteness or inaccuracy in said databases.
Furthermore, the Commission makes no representations or guarantees
regarding the accuracy or completeness of information that has been
provided by incumbent licensees and incorporated into its databases.

B. Environmental Review Requirements

33. Permittees or licensees must comply with the Commission's rules
for environmental review under the National Environmental Policy Act,
the National Historic Preservation Act, and other federal environmental
statutes. When constructing a broadcast facility, the permittee or
licensee must comply with the Commission's environmental rules for each
such facility. These environmental rules require, among other things,
that the permittee or licensee consult with expert agencies having
environmental responsibilities, including the U.S. Fish and Wildlife
Service, the State Historic Preservation Office, the U.S. Army Corps of
Engineers, and the Federal Emergency Management Agency (through the
local authority with jurisdiction over floodplains). In assessing the
effect of facility construction on historic properties, the permittee
or licensee must follow the provisions of the FCC's Nationwide
Programmatic Agreement Regarding the Section 106 National Historic
Preservation Act Review Process. The permittee or licensee must prepare
environmental assessments for any facility that may have a significant
impact in or on wilderness areas, wildlife preserves, threatened or
endangered species, or designated critical habitats, historical or
archaeological sites, Indian religious sites, floodplains, and surface
features. In addition, the permittee or licensee must prepare
environmental assessments for facilities that include high intensity
white lights in residential neighborhoods or excessive radio frequency
emission. In August 2025, the Commission released the Modernizing the
Commission's National Environmental Policy Act Rules NPRM, 90 FR 40295
(August 19, 2025), to consider updates to its rules implementing NEPA.
Potential bidders in Auction 114 should be mindful that if the
Commission amends its NEPA rules, broadcast permittees and licensees
will be subject to the amended rules.

C. Short-Form Applications Due Prior to 6:00 p.m. ET on [[September 30,
2026]]

34. In order to be eligible to bid in Auction 114, an applicant
must first submit a short-form application (FCC Form 175) via the
Auction Application Portal (AAP) in the AAS, following the instructions
set forth in the Auction 114 FCC Form 175 Instructions. The short-form
application will become available with the opening of the initial
filing window and must be submitted prior to 6:00 p.m. ET on
[[September 30, 2026]]. Late applications will not be accepted. No
application fee is required for the short-form application at the time
of filing.
35. Applications may be filed at any time beginning at 12:00 p.m.
ET on [[September 14, 2026]], until the filing window closes at 6:00
p.m. ET on [[September 30, 2026]]. Applicants are strongly encouraged
to file early and are responsible for allowing adequate time to file
their applications. There are no limits or restrictions on the number
of times an application can be updated or amended until the initial
filing deadline on [[September 30, 2026]].
36. An applicant must always click on the CERTIFY & SUBMIT button
on the Certify & Submit screen to successfully submit its FCC Form 175
and any modifications; otherwise, the application, or changes to the
application, will not be received or reviewed by Commission staff.
Additional information about accessing, completing, and viewing the FCC
Form 175 is included in the Auction 114 FCC Form 175 Instructions.
Applicants requiring technical assistance should contact FCC Auctions
Technical Support using the contact information provided in Section
VII.D. ``Contact Information,'' below. In order to provide better
service to the public, all calls to Technical Support are recorded.

D. Application Processing and Minor Modifications

1. Public Notice of Applicant's Initial Application Status and
Opportunity for Minor Modifications
37. After the deadline for filing short-form applications for
Auction 114, Commission staff will review all timely submitted
applications to determine whether each applicant has complied with the
application requirements and provided all information concerning its
qualifications for bidding. After this review is completed, OEA and MB
will issue a public notice announcing applicants' initial application
status, identifying (1) those that are complete; (2) those that are
rejected; and (3) those that are incomplete or deficient because of
minor defects that may be corrected. The Auction 114 Procedures Public
Notice also will establish an application resubmission filing window,
during which an applicant may make permissible minor modifications to
its application to address identified deficiencies. The public notice
will include the deadline for resubmitting corrected applications, and
a paper copy will be sent by overnight delivery to the contact address
listed in the FCC Form 175 for each applicant. In addition, each
applicant with an incomplete application will be sent information on
the nature of the deficiencies in its application, along with the name
and phone number of a Commission staff member who can answer questions
specific to the application. To become a qualified bidder, an applicant
must have a complete application (i.e., have timely corrected any
identified deficiencies) and make a timely and sufficient upfront
payment.
38. After the initial application filing deadline on [[September
30, 2026]], applicants can make only minor modifications to their
short-form applications. Major modifications (e.g., change of permit
selection, change in ownership that would constitute an assignment or
transfer of control of the applicant, change in the required
certifications, change in applicant's legal classification that results
in a change in control, or change to claim eligibility for a higher
bidding credit) will not be permitted. If an amendment reporting
changes is a ``major amendment,'' as described in 47 CFR 1.2105(b)(2),
the major amendment will not be accepted and may result in the
dismissal of the application. After the deadline for resubmitting
corrected applications, an applicant will have no further opportunity
to cure any deficiencies in its application or provide any additional
information that may affect Commission staff's ultimate determination
of whether and to what extent the applicant is qualified to participate
in Auction 114 and whether the applicant may be eligible to pursue any
bidding credit claim.
39. Commission staff will communicate only with an applicant's
contact person or certifying official, as designated on the short-form
application, unless the applicant's certifying official or contact
person notifies the Commission in writing that another representative
is authorized to

[[Page 51079]]

speak on behalf of the applicant. Authorizations may be sent by email
to <a href="/cdn-cgi/l/email-protection#24455147504d4b4a151510644247470a434b52">[email&#160;protected]</a>.
2. Public Notice of Applicant's Final Application Status
40. After Commission staff review resubmitted applications for
Auction 114 and evaluate upfront payment submissions, Commission staff
will release a public notice identifying applicants that have become
qualified bidders. A Qualified Bidders Public Notice will be issued
before bidding in the auction begins. Qualified bidders are those
applicants with a submitted short-form application that is deemed
timely filed and complete, and that have made a timely and sufficient
upfront payment (as described herein).

E. Upfront Payments

41. After completing its short-form application, an applicant will
have access to an electronic blank version of the FCC Form 159. In
order to be eligible to bid in this auction, a sufficient upfront
payment and a complete and accurate FCC Remittance Advice Form (FCC
Form 159, February 2003 edition) must be received prior to 6:00 p.m. ET
on [[December 3, 2026]]. An accurate and complete FCC Form 159 must
accompany each payment. Proper completion of this form is critical to
ensuring correct crediting of upfront payments. Payers are responsible
for ensuring that all information entered on the FCC Form 159,
including payment amounts, is accurate. Instructions for completing FCC
Form 159 for Auction 114 are provided below.
1. Making Upfront Payments by Wire Transfer
42. All upfront payments for Auction 114 must be transmitted by
electronic wire transfer directly from a bank or other financial
institution to the proper account at the U.S. Treasury. Wire transfer
payments for Auction 114 must be received prior to 6:00 p.m. ET on
[[December 3, 2026]]. No other payment method is acceptable. To avoid
untimely payments, applicants should discuss arrangements (including
bank closing schedules and other specific bank wire transfer
requirements, such as an in-person written request before a specified
time of day) with their bankers several days before they plan to make
the wire transfer, and must allow sufficient time for the transfer to
be initiated and completed before the deadline. The following
information will be needed:

Routing Number: 021030004
Receiving Bank: TREAS NYC, 33 Liberty Street, New York, NY 10045
BENEFICIARY: FCC, 45 L Street NE, 4th Floor, Washington, DC 20554
ACCOUNT NUMBER: 827000001001
Originating Bank Information (OBI Field): (Skip one space between each
information item)
``AUCTIONPAY''
APPLICANT FCC REGISTRATION NUMBER (FRN): (use the same FRN as used on
the applicant's FCC Form 159, block 21)
PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: ``U114'')

Note: The beneficiary account number is specific to the upfront
payments for Auction 114. Do not use a beneficiary account number
from a previous auction.

43. At least one hour before placing the order for the wire
transfer (but on the same business day), applicants must print and fax
a completed FCC Form 159 (Revised 2/03) to the FCC at (202) 418-2843.
Alternatively, the completed form can be scanned and sent as an
attachment to an email to <a href="/cdn-cgi/l/email-protection#2674746961714f544360475e43556640454508414950">[email&#160;protected]</a>. On the fax cover sheet
or in the email subject header, write ``Wire Transfer--Auction Payment
for Auction 114.'' To meet the upfront payment deadline, an applicant's
payment must be credited to the Commission's account for Auction 114
before the deadline.
44. Each applicant is responsible for ensuring timely submission of
its upfront payment and for timely filing of an accurate and complete
FCC Form 159. An applicant should coordinate with its financial
institution well ahead of the due date regarding its wire transfer and
allow sufficient time for the transfer to be initiated and completed
prior to the deadline. The Commission repeatedly has cautioned auction
participants about the importance of planning ahead to prepare for
unforeseen last-minute difficulties in making payments by wire
transfer. Each applicant is responsible for obtaining confirmation from
its financial institution that its wire transfer to U.S. Treasury was
successful and from Commission staff that its upfront payment was
timely received and that it was deposited into the proper account. As a
regulatory requirement, the U.S. Treasury screens all payments from all
financial institutions before deposits are made available to specified
accounts. If wires are suspended, the U.S. Treasury may direct
questions regarding any transfer to the financial institution
initiating the wire. Each applicant must take care to assure that any
questions directed to its financial institution(s) are addressed
promptly. To receive confirmation from Commission staff requesting
receipt and deposit of wire transfers, contact Scott Radcliffe of the
Office of Managing Director's Revenue & Receivables Operations Group/
Auctions at (202) 418-7518, or Theresa Meeks at (202) 418-2945.
45. Please note the following information regarding upfront
payments:
<bullet> All payments must be made in U.S. dollars.
<bullet> All payments must be made by wire transfer.
<bullet> Upfront payments for Auction 114 go to an account number
different from the accounts used in previous FCC auctions.
46. Failure to deliver a sufficient upfront payment as instructed
herein by the 6:00 p.m. ET deadline on [[December 3, 2026]], will
result in dismissal of the short-form application and disqualification
from participation in the auction.
2. Completing and Submitting FCC Form 159
47. The following information supplements the standard instructions
for FCC Form 159 (Revised 2/03) and is provided to help ensure the
correct completion of FCC Form 159 for upfront payments for Auction
114. Applicants need to complete FCC Form 159 carefully because:
<bullet> Mistakes may affect bidding eligibility; and
<bullet> Lack of consistency between information provided in FCC
Form 159 (Revised 2/03), FCC Form 175, and correspondence about an
application may cause processing delays.
48. Therefore, appropriate cross-references between the FCC Form
159 Remittance Advice and the FCC Form 175 are described below.

------------------------------------------------------------------------
Block No. Required information
------------------------------------------------------------------------
1........................ LOCKBOX #--Leave Blank.
2........................ Payer Name--Enter the name of the person or
company making the payment. If the applicant
itself is the payer, this entry would be the
same name as in FCC Form 175.
3........................ Total Amount Paid--Enter the amount of the
upfront payment associated with the FCC Form
159 (Revised 2/03).

[[Page 51080]]

4-8...................... Street Address, City, State, ZIP Code--Enter
the street mailing address (not post office
box number) where mail should be sent to the
payer. If the applicant is the payer, these
entries would be the same as FCC Form 175
from the Applicant Information section.
9........................ Daytime Telephone Number--Enter the telephone
number of a person knowledgeable about this
upfront payment.
10....................... Country Code--For addresses outside the
United States, enter the appropriate postal
country code (available from the Mailing
Requirements Department of the U.S. Postal
Service).
11....................... Payer FRN--Enter the payer's 10-digit FCC
Registration Number (FRN) registered in the
Commission Registration System (CORES).
21....................... Applicant FRN (Complete only if applicant is
different than payer)--Enter the applicant's
10-digit FRN registered in CORES.
24A...................... Payment Type Code--Enter ``U114''.
25A...................... Quantity--Enter the number ``1''.
26A...................... Fee Due--Amount of Upfront Payment.
27A...................... Total Fee--Will be the same amount as 26A.
28A...................... FCC Code 1--Enter the number ``114''
(indicating Auction 114).
------------------------------------------------------------------------
Notes:
<bullet> Do not use Remittance Advice (Continuation Sheet), FCC Form 159-
C, for upfront payments.
<bullet> If the applicant is different from the payer, complete blocks
13 through 21 for the applicant, using the same information shown on
FCC Form 175. Otherwise leave them blank.
<bullet> No signature is required on FCC Form 159 for auction payments.
<bullet> Because credit card payments will not be accepted for upfront
payments for an auction, leave Section E blank.

3. Upfront Payments and Bidding Eligibility
49. An upfront payment is a refundable deposit made by each
applicant seeking to participate in bidding to establish its
eligibility to bid on construction permits. Upfront payments that are
related to the specific construction permits being auctioned protect
against frivolous or insincere bidding, and provide the Commission with
a source of funds from which to collect payments owed at the close of
bidding. In the Auction 114 Comment Public Notice, OEA and MB proposed
that applicants be required to submit upfront payments as a
prerequisite to becoming qualified to bid and proposed an upfront
payment amount for each construction permit, taking into account
various factors related to the efficiency of the auction process and
the potential value of similar construction permits, and sought comment
on the upfront payment amounts. OEA and MB received no comments on
these proposals and adopt the upfront payment requirement and upfront
payment amounts as proposed.
50. An applicant must make an upfront payment sufficient to obtain
bidding eligibility on the construction permits on which it will bid.
OEA and MB proposed in the Auction 114 Comment Public Notice that the
amount of the upfront payment would determine a bidder's initial
bidding eligibility, the maximum number of bidding units on which a
bidder may place bids in any single round. Under that proposal, in
order to bid on a particular construction permit, a qualified bidder
must have selected the construction permit on its FCC Form 175 and must
have a current eligibility level that meets or exceeds the number of
bidding units assigned to that construction permit. At a minimum,
therefore, an applicant's total upfront payment must be enough to
establish eligibility to bid on at least one of the construction
permits selected on its FCC Form 175, or else the applicant will not be
qualified to participate in the auction. An applicant does not have to
make an upfront payment to cover all construction permits the applicant
selected on its FCC Form 175, but only enough to cover the maximum
number of bidding units that are associated with construction permits
on which they wish to place bids and hold provisionally winning bids in
any given round. The total upfront payment does not affect the total
dollar amount the bidder may bid on any given construction permit.
51. OEA and MB received no comments on the proposal that the
upfront payment amount would determine a bidder's initial eligibility
and to assign each construction permit a specific number of bidding
units, equal to one bidding unit per dollar of the upfront payment
listed in Attachment A. Therefore, OEA and MB adopt this proposal. Each
applicant's upfront payment amount will determine that bidder's initial
bidding eligibility.
52. In calculating its upfront payment amount, an applicant must
determine the maximum number of bidding units on which it may wish to
be active (bid on or hold provisionally winning bids on) in any single
round, and submit an upfront payment amount covering that number of
bidding units. In order to make this calculation, an applicant should
add together the bidding units for all construction permits on which it
seeks to be active in any given round. Applicants should check their
calculations carefully, as there is no provision for increasing a
bidder's eligibility after the upfront payment deadline.

Example--Upfront Payments, Bidding Eligibility, and Bidding Flexibility
----------------------------------------------------------------------------------------------------------------
Construction permit Market name Bidding units Upfront payment
----------------------------------------------------------------------------------------------------------------
MM-FM1228-A................................. Keeseville, NY................ 25,000 $25,000
MM-FM1232-A................................. Wayne, OK..................... 10,000 10,000
----------------------------------------------------------------------------------------------------------------
If a bidder wishes to bid on both construction permits in a round, it must have selected both on its FCC Form
175 and purchased at least 35,000 bidding units (25,000 + 10,000) of bidding eligibility. If it only wishes to
bid on one, but not both, purchasing 25,000 bidding units would meet the eligibility requirement for either
construction permit. The bidder would be able to bid on either construction permit, but not both at the same
time. If the bidder purchased only 10,000 bidding units, the bidder would have enough eligibility for the
Wayne, OK construction permit but not for the Keeseville, NY construction permit.

[[Page 51081]]

53. An applicant that is a former defaulter, as described in more
detail below, must pay an upfront payment 50% greater than that
required of an applicant that is not a former defaulter. For purposes
of this rule, defaults and delinquencies of the applicant itself and
its controlling interests are included. If an applicant is a former
defaulter, it must calculate its upfront payment for all of its
selected construction permits by multiplying the number of bidding
units on which it wishes to be active (bid on or hold provisionally
winning bids on) during a given round by 1.5. In order to calculate the
number of bidding units to assign to former defaulters, the Commission
will divide the upfront payment received by 1.5 and round the result up
to the nearest bidding unit.

F. Auction Registration

54. All qualified bidders for Auction 114 are automatically
registered for the auction. Registration materials will be distributed
prior to the auction by overnight delivery. The mailing will be sent
only to the contact person at the contact address listed in the FCC
Form 175 and will include the RSA SecurID[supreg] tokens (RSA tokens)
that will be required to place bids, the web address and instructions
for accessing and logging in to the bidding system, FCC assigned User
ID for each authorized bidder, and the Auction Bidder Line phone
number.
55. Qualified bidders that do not receive this registration mailing
will not be able to submit bids. Therefore, if this mailing is not
received by the contact representative for a qualified bidder by noon
on [[Wednesday, January 27, 2027]], call the Auctions Hotline at (717)
338-2868. Receipt of this registration mailing is critical to
participating in the auction, and each qualified bidder is responsible
for ensuring it has received all of the registration materials.
56. In the event that an RSA token is lost or damaged, only a
person who has been designated as an authorized bidder, the contact
person, or the certifying official on the applicant's short-form
application may request replacements. To request replacement, call the
Auction Bidder Line at the telephone number provided in the
registration materials or the Auctions Hotline at (717) 338-2868.

G. Remote Electronic Bidding via the Bidding System

57. Bidders will be able to participate in Auction 114 over the
internet using the bidding system. In addition, bidders will have the
option of placing bids by telephone through a dedicated auction bidder
line. Please note that telephonic bid assistants are required to use a
script when entering bids placed by telephone. Telephonic bidders are
therefore reminded to allow sufficient time to bid by placing their
calls well in advance of the close of a round. The length of a call to
place a telephonic bid may vary; please allow a minimum of 10 minutes.
The toll-free telephone number for the auction bidder line will be
provided to qualified bidders prior to the start of bidding in the
auction.
58. Only qualified bidders are permitted to bid. Each authorized
bidder must have his or her own RSA token, which the Commission will
provide at no charge. Each applicant that is deemed to be a qualified
bidder will be issued three RSA tokens. A bidder cannot bid without his
or her RSA token. In order to access the bidding function of the
bidding system, bidders must be logged in during the bidding round
using the passcode generated by the RSA token and a personal
identification number (PIN) created by the bidder. For security
purposes, the RSA tokens and a telephone number for bidding questions
are only mailed to the contact person at the contact address listed on
the FCC Form 175. Each RSA token is tailored to a specific auction. RSA
tokens issued for other auctions or obtained from a source other than
the FCC will not work for Auction 114. Please note that the RSA tokens
can be recycled, and the Commission requests that bidders return the
tokens to the FCC. Pre-addressed envelopes will be provided to return
the tokens once the auction has ended.
59. The Commission makes no warranties whatsoever, and shall not be
deemed to have made any warranties, with respect to the bidding system,
including any implied warranties of merchantability or fitness for a
particular purpose. In no event shall the Commission, or any of its
officers, employees, or agents, be liable for any damages whatsoever
(including, but not limited to, loss of business profits, business
interruption, loss of use, loss of revenue, loss of business
information, or any other direct, indirect, or consequential damages)
arising out of or relating to the existence, furnishing, functioning,
or use of the bidding system. Moreover, no obligation or liability will
arise out of the Commission's technical, programming, or other advice
or service provided in connection with the bidding system.
60. To the extent an issue arises with the bidding system itself,
the Commission will take all appropriate measures to resolve such
issues quickly and equitably. Should an issue arise that is outside the
bidding system or attributable to a bidder, including, but not limited
to, a bidder's hardware, software, or internet access problem that
prevents the bidder from submitting a bid prior to the end of a round,
the Commission shall have no obligation to resolve or remedy such an
issue on behalf of the bidder. Similarly, if an issue arises due to
bidder error using the bidding system, the Commission shall have no
obligation to resolve or remedy such an issue on behalf of the bidder.
Accordingly, after the close of a bidding round, the results of bid
processing will not be altered absent evidence of any failure in the
bidding system.

H. Mock Auction

61. All qualified bidders will be eligible to participate in a mock
auction. The mock auction, which will begin on [[January 29, 2027]],
will enable bidders to become familiar with the bidding system and to
practice submitting bids prior to the auction. OEA and MB recommend
that all qualified bidders, including all their authorized bidders,
participate to ensure that they can log in to the bidding system and
gain experience with the bidding procedures. Participating in the mock
auction may reduce the likelihood of a bidder making a mistake during
the auction. Details regarding the mock auction will be announced in
the Qualified Bidders Public Notice for Auction 114.

I. Fraud Alert

62. As is the case with many business investment opportunities,
some unscrupulous parties may attempt to use Auction 114 to deceive and
defraud unsuspecting investors. Common warning signals of fraud include
the following:
<bullet> The first contact is a ``cold call'' from a telemarketer,
or is made in response to an inquiry prompted by a radio or television
infomercial.
<bullet> The offering materials used to invest in the venture
appear to be targeted at IRA funds, for example, by including all
documents and papers needed for the transfer of funds maintained in IRA
accounts.
<bullet> The amount of investment is less than $25,000.
<bullet> The sales representative makes verbal representations
that: (a) the Internal Revenue Service, Federal Trade Commission (FTC),
Securities and Exchange Commission (SEC), FCC, or other government
agency has approved the investment; (b) the investment is not subject
to state or federal securities laws; or (c) the investment will yield
unrealistically high short-term profits. In addition, the offering
materials often

[[Page 51082]]

include copies of actual FCC releases, or quotes from FCC personnel,
giving the appearance of FCC knowledge or approval of the solicitation.
63. Information about deceptive telemarketing investment schemes is
available from the FCC as well as the FTC and SEC. Additional sources
of information for potential bidders and investors may be obtained from
the following sources:

<bullet> the FCC's Consumer Call Center at (888) 225-5322 or by
visiting <a href="http://www.fcc.gov/general/frauds-scams-and-alerts-guides">www.fcc.gov/general/frauds-scams-and-alerts-guides</a>
<bullet> the FTC at (877) FTC-HELP ((877) 382-4357) or by visiting
<a href="http://www.consumer.ftc.gov/articles/0238-investment-risks">www.consumer.ftc.gov/articles/0238-investment-risks</a>
<bullet> the SEC at (800) 732-0330 or by visiting <a href="http://www.sec.gov/investor">www.sec.gov/investor</a>.

64. Complaints about specific deceptive telemarketing investment
schemes should be directed to the FTC, the SEC, or the National
Consumer League's Fraud project at <a href="https://fraud.org/">https://fraud.org/</a> or (202) 835-
3323, Ext. 815.

III. Short-Form Application Contents and Certifications

A. General Information Regarding Short-Form Applications

65. An application to participate in Auction 114, referred to as a
short-form application or FCC Form 175, provides information that the
Commission uses to determine whether the applicant is legally,
technically, and financially qualified to participate in Commission
auctions for licenses or permits. The short-form application is the
first part of the Commission's two-phased auction application process.
In the first phase, parties desiring to participate in the auction must
file a streamlined, short-form application in which they certify under
penalty of perjury as to their qualifications. Eligibility to
participate in bidding is based on the applicant's short-form
application and certifications, and on its upfront payment. After
bidding closes, in the second phase of the process, each winning bidder
in Auction 114 must file a more comprehensive post-auction, long-form
application (FCC Form 2100, Schedule 301-FM) in MB's Licensing and
Management System (LMS) for each construction permit it wins in the
auction. OEA and MB remind applicants that being deemed qualified to
bid in Auction 114 does not constitute a determination that a party is
qualified to hold a Commission license or is eligible for a new entrant
bidding credit.
66. A party seeking a construction permit available in Auction 114
must file an FCC Form 175 electronically via the AAP in the AAS prior
to 6:00 p.m. ET on [[September 30, 2026]], following the procedures
prescribed in the Auction 114 FCC Form 175 Instructions. In order to
access the AAP to create a new short-form application for an applicant,
or take any other action on an auction application, an individual must
have an FCC Username account in the Commission Registration System
(CORES) that is associated with the applicant's FRN and has been
assigned the appropriate Auctions Permissions in the AAP. The AAS
includes security features, including the use of multifactor
authentication and Auctions Permissions, that must be set-up before you
can create a short-form application. OEA and MB encourage individuals
who expect to work on a short-form application on behalf of an
applicant to take the steps necessary to access the AAP and obtain
Auction Permission for the applicant's FRN prior to the opening of the
filing window.
67. OEA and MB describe more fully herein the information
disclosures and certifications required in the short-form application.
68. An Auction 114 applicant bears full responsibility for
submitting an accurate, complete, and timely short-form application.
Pursuant to the Commission's competitive bidding rules, an applicant
must make a series of certifications under penalty of perjury on its
FCC Form 175 related to the information provided in its application and
its participation in the auction, and an applicant must confirm that it
is legally, technically, financially, and otherwise qualified to hold a
license. If an applicant claims eligibility for a bidding credit, then
the information provided in its short-form application will be used to
determine whether the applicant appears to be eligible for the claimed
bidding credit. An applicant's eligibility for a claimed bidding credit
is verified after bidding concludes, based on an evaluation of the
winning bidder's post-auction long-form application. As discussed
herein, each participant in Auction 114 must also certify that it has
read the Auction 114 Procedures Public Notice and familiarized itself
both with the auction procedures and with the requirements for
obtaining a construction permit and operating facilities in the FM
broadcast service. If an Auction 114 applicant fails to make the
required certifications in its FCC Form 175 by the filing deadline,
then its application will be deemed unacceptable for filing and cannot
be corrected after the filing deadline. Applicants filing a short-form
application are subject to the Commission's rules prohibiting certain
communications beginning at the deadline for filing, as described
below.
69. Each applicant should note that submission of a short-form
application (and any amendments thereto) constitutes a representation
by the certifying official that he or she is an authorized
representative of the applicant, that he or she has read the form's
instructions and certifications, and that the contents of the
application, its certifications, and any attachments are true and
correct. Submission of a false certification to the Commission may
result in penalties, including monetary forfeitures, license
forfeitures, ineligibility to participate in future auctions, and/or
criminal prosecution.
70. Applicants are cautioned that, because the required information
submitted in FCC Form 175 bears on each applicant's qualifications,
requests for confidential treatment will not be routinely granted. The
Commission generally has held that it may publicly release confidential
business information where the party has put that information at issue
in a Commission proceeding or where the Commission has identified a
compelling public interest in disclosing the information.
71. An applicant must designate between one and three individuals
as authorized bidders in its FCC Form 175. The Commission's rules
prohibit an individual from serving as an authorized bidder for more
than one auction applicant.
72. No individual or entity may file more than one short-form
application or have a controlling interest in more than one short-form
application. If a party submits multiple short-form applications for an
auction, then only one application may be the basis for that party to
become qualified to bid in that auction.
73. Similarly, and consistent with the Commission's general
prohibition of joint bidding agreements, a party is generally permitted
to participate in a Commission auction only through a single bidding
entity. Accordingly, the filing of applications in Auction 114 by
multiple entities controlled by the same individual or set of
individuals generally will not be permitted. Consistent with this
restriction, a broadcaster interested in bidding on more than one
construction permit cannot use two or more subsidiary entities to bid
separately on construction permits in separate markets, regardless of
whether each subsidiary were to select different construction permits
on its short-form application. Likewise, if an entity, individual, or
set of individuals hold

[[Page 51083]]

controlling interests in multiple entities that are interested in
participating in Auction 114, regardless of whether those entities have
other, non-shared controlling or non-controlling interests, those
entities must participate in the auction through a single bidding
entity and only that bidding entity may file a short-form application.
As noted by the Commission in adopting the prohibition of applications
by commonly controlled entities, this rule, in conjunction with the
prohibition against joint bidding agreements, protects the
competitiveness of the Commission's auctions.
74. As discussed herein, after the initial short-form application
filing deadline, Commission staff will review all timely submitted
applications for Auction 114 to determine whether each application
complies with the application requirements and whether it has provided
all required information concerning the applicant's qualifications for
bidding. After this review is completed, a public notice will be
released announcing the status of applications and identifying the
applications that are complete, rejected, and those that are incomplete
because of minor defects that may be corrected. The Auction 114
Procedures Public Notice also will establish an application
resubmission filing window, during which an applicant may make
permissible minor modifications to its application to address
identified deficiencies. The public notice will include the deadline
for resubmitting modified applications. To become a qualified bidder,
an applicant must have a complete application (i.e., have timely
corrected any identified deficiencies) and make a timely and sufficient
upfront payment. Qualified bidders will be identified by public notice
at least 10 days prior to the mock auction.
75. OEA and MB discuss herein additional details regarding certain
information required to be submitted in the short-form application. An
applicant should consult the Commission's rules to ensure that, in
addition to the materials described herein, all required information is
included in its short-form application. To the extent the information
in the Auction 114 Procedures Public Notice does not address a
potential applicant's specific operating structure, or if the applicant
needs additional information or guidance concerning the following
disclosure requirements, the applicant should review the educational
materials for Auction 114 in the Education section on the Auction 114
website at <a href="http://www.fcc.gov/auction/114">www.fcc.gov/auction/114</a> and use the contact information
provided in the Auction 114 Procedures Public Notice to consult with
Commission staff to better understand the information it must submit in
its short-form application.

B. Certification of Notice of Auction 114 Requirements and Procedures

76. For the reasons set forth in the Auction 114 Comment Public
Notice, OEA and MB adopt the proposal to require any applicant seeking
to participate in Auction 114 to certify in its short-form application,
under penalty of perjury, that it has read the Auction 114 Procedures
Public Notice adopting procedures for Auction 114 and that it has
familiarized itself with these procedures and with the requirements for
obtaining a construction permit for an FM broadcast station. OEA and MB
received no comment on the proposal.
77. This certification is designed to bolster applicants' efforts
to educate themselves about the procedures for auction participation
and to ensure that, prior to submitting their short-form applications,
applicants understand their obligation to stay abreast of relevant
information. Familiarity with the Commission's rules and procedures
governing Auction 114 may also help bidders avoid the consequences to
them associated with defaults, which also cause harm to other
applicants and the public by reducing the efficiency of the auction
process and reducing the likelihood that the construction permits will
be assigned to the bidder that values it the most. This certification,
along with the other certifications required pursuant to 47 CFR
1.2105(a), will promote the submission of applications that meet the
Commission's requirements, thereby leading to a more efficient
application process.
78. A substantively similar requirement was instituted for Auctions
110, 108, 112, and 113. This requirement furthers a long-standing
policy under which the Commission expressly places a burden upon each
applicant to be thoroughly familiar with the procedures, terms, and
conditions contained in the relevant Procedures Public Notice and any
future public notices that may be released in the auction proceeding.
While the certification OEA and MB add refers to information regarding
auction procedures and licensing that is available at the time of
certification, potential auction applicants are on notice from the
Auction 114 Procedures Public Notice that their educational efforts
must continue even after their short-form applications are filed.
Commission staff routinely makes available detailed educational
materials, such as interactive, online tutorials, to enhance interested
parties' comprehension of the pre-bidding and bidding processes and to
help applicants minimize their need to engage outside engineers, legal
counsel, or other auction experts.
79. For these reasons, OEA and MB will require each Auction 114
applicant to certify as follows in its short-form application: that the
applicant has read the public notice adopting procedures for the
auction and that it has familiarized itself both with the auction
procedures and with the requirements for obtaining a construction
permit for an FM broadcast station.
80. An applicant must provide this certification under penalty of
perjury, consistent with 47 CFR 1.2105(a). This certification must be
provided in addition to the certifications already required under 47
CFR 1.2105. As with the other certifications required in the short-form
application, an applicant's failure to make this certification in its
FCC Form 175 by the [[September 30, 2026]], short-form filing deadline
will render its application unacceptable for filing, and its
application will be dismissed with prejudice.

C. Authorized Bidders

81. An applicant must designate at least one authorized bidder, and
no more than three, in its FCC Form 175. The Commission's rules
prohibit an individual from serving as an authorized bidder for more
than one auction applicant or being listed as an authorized bidder in
more than one short-form application.
82. To access the bidding system, each authorized bidder must have
an FCC Username account that is associated with the applicant's FRN in
CORES. Each authorized bidder must use its own unique FCC Username to
access the bidding system. The applicant must provide the authorized
bidder's FCC Username as the email address for that authorized bidder
in its FCC Form 175. OEA and MB will withhold these email addresses
from public disclosure. If an applicant does not provide an FCC
Username that is associated with the applicant's FRN for an authorized
bidder in its FCC Form 175, that bidder will be unable to place or
submit bids. For further details, applicants should refer to the
Auction 114 FCC Form 175 Instructions.

D. Permit Selection

83. An applicant must select on its FCC Form 175 all of the
construction permits on which it may want to bid from the list of
available permits. An applicant must carefully review and

[[Page 51084]]

verify its construction permit selections before the deadline for
submitting the FCC Form 175 because those selections cannot be changed
after the initial short-form application filing deadline. An applicant
is not required to place bids on any of the permits it selects, but the
bidding system will not accept bids for any permit that the applicant
did not select in its FCC Form 175.

E. Disclosure of Agreements and Bidding Arrangements

84. An applicant must provide, in its short-form application, a
brief description of, and identify each party to, any partnership,
joint venture, consortium, or other agreements, arrangements, or
understandings of any kind relating to the FM construction permits
being auctioned, including any agreement that addresses or communicates
directly or indirectly bids (including specific prices), bidding
strategies (including the specific construction permit(s) on which to
bid or not to bid), or the post-auction market structure, to which the
applicant, or any party that controls or is controlled by the
applicant, is a party. In connection with the agreement disclosure
requirement, the applicant must certify under penalty of perjury in its
FCC Form 175 that it has described, and identified each party to, any
such agreements, arrangements, or understandings to which it (or any
party that controls it or that it controls) is a party. An auction
applicant that enters into any agreement during an auction that relates
to the permits being auctioned is subject to the same disclosure
obligations it would have for agreements existing at the short-form
application filing deadline, and it must maintain the accuracy and
completeness of the information in its pending application.
85. For purposes of making the required agreement disclosures on
the short-form application, if parties agree in principle on all
material terms prior to the application filing deadline, then each
party to the agreement that is submitting an application must provide a
brief description of, and identify the other party or parties to, the
agreement on its respective FCC Form 175, even if the agreement has not
been reduced to writing. Parties that have not agreed in principle by
the short-form application filing deadline should not describe, or
include the names of parties to, the discussions on their applications.
86. The Commission's rules generally prohibit joint bidding and
other arrangements involving auction applicants (including any party
that controls, or is controlled by, such applicants). For purposes of
this prohibition, a joint bidding arrangement includes arrangements
relating to the permits being auctioned that address or communicate,
directly or indirectly, bidding at the auction, bidding strategies,
including arrangements regarding price or the specific permits on which
to bid, and any such arrangements relating to the post-auction market
structure.
87. To implement the prohibition on joint bidding arrangements, the
Commission's rules require each applicant to certify in its short-form
application that it has disclosed any arrangements or understandings of
any kind relating to the permits or licenses being auctioned to which
it (or any party that controls or is controlled by it) is a party. The
applicant must also certify that it (or any party that controls or is
controlled by it) has not entered and will not enter into any
arrangement or understanding of any kind relating directly or
indirectly to bidding at auction with, among others, any other
applicant.
88. Although the Commission's rules do not prohibit auction
applicants from communicating about matters that are within the scope
of an excepted agreement that has been disclosed in an FCC Form 175,
the Commission reminds applicants that certain discussions or exchanges
could nonetheless touch upon impermissible subject matters, and that
compliance with the Commission's rules will not insulate a party from
enforcement of the antitrust laws.
89. Applicants should bear in mind that a winning bidder will be
required to disclose in its post-auction long-form application (FCC
Form 2100, Schedule 301-FM) the specific terms, conditions, and parties
involved in any agreement relating to the construction permits being
auctioned into which it had entered prior to the time bidding was
completed. This applies to any settlement agreement, joint venture,
partnership, or other agreement, arrangement, or understanding of any
kind entered into relating to the competitive bidding process,
including any agreements relating to the construction permits being
auctioned that address or communicate directly or indirectly bids
(including specific prices), bidding strategies (including the specific
permits on which to bid or not to bid), or the post-auction market
structure, to which the applicant, or any party that controls or is
controlled by the applicant, is a party.

F. Ownership Disclosure Requirements

90. Each applicant must comply with the ownership disclosure
requirements and provide information required by 47 CFR 1.2105 and
1.2112. Specifically, an applicant must fully disclose information
regarding the real party or parties-in-interest in the applicant or
application and the ownership structure of the applicant, including
both direct and indirect ownership interests of 10% or more, as
prescribed in 47 CFR 1.2105 and 1.2112. Each applicant is responsible
for ensuring that information submitted in its short-form application
is complete and accurate.

G. Foreign Ownership Disclosure Requirements

91. 47 U.S.C. 310 requires the Commission to review foreign
investment in broadcast station licenses and imposes specific
restrictions on who may hold certain types of broadcast licenses. When
completing a short-form application, an applicant must disclose
information concerning its foreign ownership. In addition, if an
applicant's foreign ownership exceeds the benchmark set forth in 47
U.S.C. 310(b)(4), then it may seek to participate in Auction 114 only
if it has filed a 47 U.S.C. 310(b)(4) petition for declaratory ruling
with the Commission prior to the short-form application filing
deadline.
92. When submitting its short-form application, an applicant must
certify that, as of the filing deadline, the applicant is in compliance
with the foreign ownership restrictions in 47 U.S.C. 310, is in
compliance with the terms and conditions of a 47 U.S.C. 310(b)(4)
declaratory ruling granted by the Commission, or has filed a petition
for declaratory ruling requesting Commission approval to exceed the
foreign ownership benchmark in 47 U.S.C. 310(b)(4) that is pending
before the Commission. An applicant with foreign ownership that
necessitates a 47 U.S.C. 310(b)(4) declaratory ruling must submit as an
attachment to its short-form application a copy of its pending petition
for declaratory ruling or a citation to its previously granted
declaratory ruling, whichever is applicable. In addition, if the
applicant has been granted a 47 U.S.C. 310(b)(4) declaratory ruling, it
must indicate in its short-form application whether the applicant
remains in compliance with the terms and conditions of that declaratory
ruling. Such an applicant must also indicate in its short-form
application whether the facts upon which its declaratory ruling was
based have changed and, if they have, the applicant must explain any
such changes and whether and how the applicant remains in compliance
with its declaratory ruling.Similarly, anapplicant whose petition for

[[Page 51085]]

declaratory ruling is pending before the Commission must indicate in
its short-form application whether the fact scontained in its petition
have changed since it was filed and, if they have, the applicant must
explain any such changes and indicate whether the pending petition has
been amended to reflect such changes. Additional information concerning
foreign ownership disclosure requirements is provided in the Auction
114 FCC Form 175 Instructions.

H. New Entrant Bidding Credit

93. To promote the objectives of 47 U.S.C. 309(j) and further its
long-standing commitment to the diversification of broadcast facility
ownership, the Commission provides a tiered new entrant bidding credit
for broadcast auction applicants with no, or very few, other media
interests.
94. Applicants that qualify for the new entrant bidding credit are
eligible for a bidding credit in this auction that represents the
amount by which a bidder's winning bid is discounted. Eligibility for
the new entrant bidding credit must be specified in an applicant's
short-form application, which establishes that applicant's maximum
bidding credit eligibility for Auction 114. The size of a new entrant
bidding credit depends on the number of ownership interests in other
media of mass communications that are attributable to the bidder-entity
and its attributable interest-holders:
<bullet> A 35% bidding credit will be given to a winning bidder if
it, and/or any individual or entity with an attributable interest in
the winning bidder, has no attributable interest in any other media of
mass communications, as defined in 47 CFR 73.5008;
<bullet> A 25% bidding credit will be given to a winning bidder if
it, and/or any individual or entity with an attributable interest in
the winning bidder, has an attributable interest in no more than three
mass media facilities, as defined in 47 CFR 73.5008;
<bullet> No bidding credit will be given if any of the commonly
owned mass media facilities serve the ``same area'' as the broadcast
permit proposed in the auction, as defined in 47 CFR 73.5007(b), or if
the winning bidder, and/or any individual or entity with an
attributable interest in the winning bidder, has attributable interests
in more than three mass media facilities. For purposes of determining
whether a broadcast permit offered in this auction is in the ``same
area'' as an applicant's existing mass media facilities, the coverage
area of the to-be-auctioned facility is calculated using maximum class
facilities at the FM allotment reference coordinates specified in
Attachment A, not based on any applicant-specified preferred site
coordinates for FM allotments.
95. Bidding credits are not cumulative; qualifying applicants
receive either the 25% or the 35% bidding credit, but not both.
96. The interests of the applicant, and of any individuals or
entities with an attributable interest in the applicant, in other media
of mass communications are considered when determining an applicant's
eligibility for the new entrant bidding credit. Attributable interests
are defined in 47 CFR 73.3555 and note 2 of that section. The bidder's
attributable interests, and thus its maximum new entrant bidding credit
eligibility, are determined as of the short-form application filing
deadline, which for Auction 114 is [[September 30, 2026]]. An applicant
intending to divest a media interest or make any other ownership
change, such as resignation of positional interests (officer or
director) in order to avoid attribution for purposes of qualifying for
the new entrant bidding credit, must have consummated such divestment
transactions or have completed such ownership changes by no later than
the FCC Form 175 filing deadline. Each prospective bidder is reminded,
however, that events occurring after the short-form application filing
deadline, such as the acquisition of attributable interests in media of
mass communications, may cause diminishment or loss of the bidding
credit and must be reported immediately.
97. Under broadcast attribution rules, those entities or
individuals with an attributable interest in a bidder include:

<bullet> all officers and directors of a corporate bidder;
<bullet> any owner of 5% or more of the voting stock of a corporate
bidder;
<bullet> all general partners and limited partners of a partnership
bidder, unless the limited partners are sufficiently insulated; and
<bullet> all members of a limited liability company, unless
sufficiently insulated.

98. In cases where an applicant's spouse or close family member
holds other media interests, such interests are not automatically
attributable to the bidder. The Commission decides attribution issues
in this context based on certain factors traditionally considered
relevant.
99. In the New Entrant Bidding Credit Reconsideration Order, 64 FR
44856 (August 18, 1999), the Commission further refined the eligibility
standards for the new entrant bidding credit, judging it appropriate to
attribute the media interests held by very substantial investors in, or
creditors of, an applicant claiming new entrant status. Specifically,
the attributable mass media interests held by an individual or entity
with an equity and/or debt interest in an applicant shall be attributed
to that bidder for purposes of determining its eligibility for the new
entrant bidding credit, if the equity and debt interests, in the
aggregate, exceed 33% of the total asset value of the applicant, even
if such an interest is non-voting.
100. In the Diversification Order, 76 FR 7719 (February 11, 2011),
the Commission relaxed the equity/debt plus attribution standard, to
allow for higher investment opportunities in entities meeting the
definition of ``eligible entities.'' An ``eligible entity'' is defined
in Note 2(i) of 47 CFR 73.3555. Pursuant to the Diversification Order,
the Commission will allow the holder of an equity or debt interest in
the applicant to exceed the above-noted 33% threshold without
triggering attribution provided (1) the combined equity and debt in the
``eligible entity'' is less than 50%; or (2) the total debt in the
``eligible entity'' does not exceed 80% of the asset value, and the
interest holder does not hold any equity interest, option, or promise
to acquire an equity interest in the ``eligible entity'' or any related
entity.
101. Generally, media interests will be attributable for purposes
of the new entrant bidding credit to the same extent that such other
media interests are considered attributable for purposes of the
broadcast multiple ownership rules. Attributable interests held by a
winning bidder in existing low power television, television translator,
or FM translator facilities, however, will not be counted among the
applicant's other mass media interests in determining its eligibility
for a new entrant bidding credit. A medium of mass communications is
defined in 47 CFR 73.5008(b). Full service noncommercial educational
stations, on both reserved and non-reserved channels, are included
among ``media of mass communications'' as defined in 47 CFR 73.5008(b).
1. Application Requirements
102. In addition to the ownership information required pursuant to
47 CFR 1.2105 and 1.2112, applicants seeking a new entrant bidding
credit are required to establish on their short-form applications that
they satisfy the eligibility requirements to qualify for the bidding
credit. In those cases, a certification under penalty of perjury must
be provided in completing the

[[Page 51086]]

short-form application. An applicant claiming that it qualifies for a
35% new entrant bidding credit must certify that neither it nor any of
its attributable interest holders has any attributable interests in any
other media of mass communications. An applicant claiming that it
qualifies for a 25% new entrant bidding credit must certify that
neither it nor any of its attributable interest holders has any
attributable interests in more than three media of mass communications,
and must identify and describe such media of mass communications.
2. Unjust Enrichment
103. Applicants should note that unjust enrichment provisions apply
to a winning bidder that utilizes a bidding credit and subsequently
seeks to assign or transfer control of its license or construction
permit to an entity not qualifying for the same level of bidding
credit.

I. Provisions Regarding Former and Current Defaulters

104. Pursuant to the rules governing competitive bidding, each
applicant must make certifications regarding whether it is a current or
former defaulter or delinquent. A current defaulter or delinquent is
not eligible to participate in Auction 114, but a former defaulter or
delinquent may participate so long as it is otherwise qualified and
makes an upfront payment that is 50% more than would otherwise be
necessary. Accordingly, each applicant must certify under penalty of
perjury on its FCC Form 175 that it, its affiliates, its controlling
interests, and the affiliates of its controlling interests are not in
default on any payment for a Commission construction permit or license
(including down payments) and that they are not delinquent on any non-
tax debt owed to any Federal agency. Additionally, an applicant must
certify under penalty of perjury whether it (along with its controlling
interests) has ever been in default on any payment for a Commission
construction permit or license (including down payments) or has ever
been delinquent on any non-tax debt owed to any Federal agency, subject
to the exclusions described below. For purposes of making these
certifications, the term ``controlling interest'' is defined in 47 CFR
1.2105(a)(4)(i).
105. Under the Commission's rule regarding short-form applications
by former defaulters, an applicant is considered a ``former defaulter''
or a ``former delinquent'' when, as of the application filing deadline,
the applicant or any of its controlling interests has defaulted on any
Commission construction permit or license or has been delinquent on any
non-tax debt owed to any Federal agency, but has since remedied all
such defaults and cured all the outstanding non-tax delinquencies. For
purposes of the certification under 47 CFR 1.2105(a)(2)(xii), the
applicant may exclude from consideration any cured default on a
Commission construction permit or license or cured delinquency on a
non-tax debt owed to a Federal agency for which any of the following
criteria are met: (1) the notice of the final payment deadline or
delinquency was received more than seven years before the short-form
application filing deadline, (2) the default or delinquency amounted to
less than $100,000, (3) the default or delinquency was paid within two
quarters (i.e., six months) after receiving the notice of the final
payment deadline or delinquency, or (4) the default or delinquency was
the subject of a legal or arbitration proceeding and was cured upon
resolution of the proceeding. With respect to the first exclusion,
notice to a debtor may include notice of a final payment deadline or
notice of delinquency and may be express or implied depending on the
origin of any Federal non-tax debt giving rise to a default or
delinquency. Additionally, for the third exclusion, the date of receipt
of the notice of a final default deadline or delinquency by the
intended party or debtor will be used for purposes of verifying receipt
of notice.
106. In addition to the Auction 114 Procedures Public Notice,
applicants are encouraged to review previous guidance on default and
delinquency disclosure requirements in the context of the auction
short-form application process. Parties are also encouraged to consult
with Auctions Division staff if they have any questions about default
and delinquency disclosure requirements.
107. The Commission considers outstanding debts owed to the United
States Government, in any amount, to be a serious matter. The
Commission adopted rules, including a provision referred to as the
``red light rule,'' that implement its obligations under the Debt
Collection Improvement Act of 1996, which governs the collection of
debts owed to the United States. Under the red light rule, applications
and other requests for benefits filed by parties that have outstanding
debts owed to the Commission will not be processed. When adopting that
rule, the Commission explicitly declared, however, that its competitive
bidding rules ``are not affected'' by the red light rule. As a
consequence, the Commission's adoption of the red light rule does not
alter the applicability of any of its competitive bidding rules,
including the provisions and certifications of 47 CFR 1.2105 and
1.2106, with regard to current and former defaults or delinquencies.
108. OEA and MB remind each applicant, however, that the
Commission's Red Light Display System, which provides information
regarding debts currently owed to the Commission, may not be
determinative of an auction applicant's ability to comply with the
default and delinquency disclosure requirements of 47 CFR 1.2105. Thus,
while the red light rule ultimately may prevent the processing of long-
form applications by auction winners, an auction applicant's lack of
current ``red light'' status is not necessarily determinative of its
eligibility to participate in an auction (or whether it may be subject
to an increased upfront payment obligation). Moreover, a prospective
applicant in Auction 114 should note that any long-form applications
filed after the close of bidding will be reviewed for compliance with
the Commission's red light rule, and such review may result in the
dismissal of a winning bidder's long-form application. OEA and MB
encourage each applicant to carefully review all records and other
available Federal agency databases and information sources to determine
whether the applicant, or any of its affiliates, or any of its
controlling interests, or any of the affiliates of its controlling
interests, currently owes or was ever delinquent in the payment of non-
tax debt owed to any Federal agency.

J. Noncommercial Educational Status Election

109. In the NCE Second Report and Order, 68 FR 26220 (May 15,
2003), the Commission held that applications for noncommercial
educational (NCE) radio stations on non-reserved spectrum, filed during
an auction filing window, will be returned as unacceptable for filing
if mutually exclusive with any application for a commercial station.
Accordingly, if an FCC Form 175 filed during the Auction 114 filing
window identifying the application's proposed station as noncommercial
educational is mutually exclusive with any application filed during
that window for a commercial station, the NCE application will be
returned as unacceptable for filing and the applicant will not be
provided with any further opportunity to become eligible to bid in this
auction. For this reason, each prospective applicant in this auction
should consider carefully

[[Page 51087]]

whether it wishes to propose NCE operation for any FM station acquired
in this auction. This NCE election cannot be reversed after the initial
application filing deadline.

K. Modifications to FCC Form 175

1. Duty To Maintain Accuracy and Completeness of FCC Form 175
110. Pursuant to 47 CFR 1.65, each applicant has a continuing
obligation to maintain the accuracy and completeness of information
furnished in its pending application to participate in Auction 114.
Consistent with the requirements for prior broadcast auctions, an
applicant for Auction 114 must furnish additional or corrected
information to the Commission within five business days after a
significant occurrence, or amend its FCC Form 175 no more than five
business days after the applicant becomes aware of the need for the
amendment. In accordance with the Commission's rules, an applicant's
obligation to make modifications to a pending auction application in
order to provide additional or corrected information continues beyond
the five-day period, even if the report is not made within the five-day
period. An applicant is obligated to amend its pending application even
if a reported change may result in the dismissal of the application
because it is subsequently determined to be a major modification.
2. Modifying an FCC Form 175
111. As noted above, a party seeking to participate in Auction 114
must file an FCC Form 175 electronically via the AAP in the AAS. During
the initial filing window, an applicant will be able to make any
necessary modifications to its FCC Form 175 in the AAP. An applicant
that has certified and submitted its FCC Form 175 before the close of
the initial filing window may continue to make modifications as often
as necessary until the close of that window; however, the applicant
must re-certify and re-submit its FCC Form 175 before the close of the
initial filing window to confirm and effect its latest application
changes. After each submission, a confirmation page will be displayed
stating the submission time and submission date.
112. An applicant will also be allowed to modify its FCC Form 175
in the AAP, except for certain fields, during the resubmission filing
window and after the release of the public notice announcing the
qualified bidders for an auction. During these times, if an applicant
needs to make permissible minor changes to its FCC Form 175 or must
make changes in order to maintain the accuracy and completeness of its
application pursuant to 47 CFR 1.65 and 1.2105(b)(4), then it must make
the change(s) in the AAP and re-certify and re-submit its application
to confirm and effect the change(s).
113. An applicant's ability to modify its FCC Form 175 in the AAP
will be limited between the closing of the initial filing window and
the opening of the application resubmission filing window, and between
the closing of the resubmission filing window and the release of the
public notice announcing the qualified bidders for an auction. During
these periods, an applicant will be able to view its submitted
application, but will be permitted to modify only the applicant's
address, responsible party address, and contact information (e.g.,
name, address, telephone number) in the AAP. An applicant will not be
able to modify any other pages of the FCC Form 175 in the AAP during
these periods. If, during these periods, an applicant needs to make
other permissible minor changes to its FCC Form 175, or changes to
maintain the accuracy and completeness of its application pursuant to
47 CFR 1.65 and 1.2105(b)(4), then the applicant must submit a letter
briefly summarizing the changes to its FCC Form 175 via email to
<a href="/cdn-cgi/l/email-protection#97f6e2f4e3fef8f9a6a6a3d7f1f4f4b9f0f8e1">[email&#160;protected]</a>. The email summarizing the changes must include a
subject line referring to Auction 114 and the name of the applicant,
for example, ``Re: Changes to Auction 114 Auction Application of XYZ
Corp.'' Any attachments to the email must be formatted as Adobe[supreg]
Acrobat[supreg] (PDF) or Microsoft[supreg] Word documents. An applicant
that submits its changes in this manner must subsequently modify,
certify, and submit its FCC Form 175 electronically in the AAP once it
is again open and available to applicants.
114. Applicants should also note that even at times when the AAP is
open and available to applicants, the system will not allow an
applicant to make certain other permissible changes itself (e.g.,
correcting a misstatement of the applicant's legal classification). If
an applicant needs to make a permissible minor change of this nature,
then it must submit a written request by email to the Auctions Division
Chief, via <a href="/cdn-cgi/l/email-protection#ff9e8a9c8b969091cececbbf999c9cd1989089">[email&#160;protected]</a>, requesting that the Commission manually
make the change on the applicant's behalf. Once Commission staff has
informed the applicant that the change has been made in the AAP, the
applicant must then re-certify and re-submit its FCC Form 175 in the
AAP to confirm and effect the change(s).
115. As with filing the FCC Form 175, any amendment(s) to the
application and related statements of fact must be certified by an
authorized representative of the applicant with authority to bind the
applicant. Applicants should note that submission of any such amendment
or related statement of fact constitutes a representation by the person
certifying that he or she is an authorized representative with such
authority and that the contents of the amendment or statement of fact
are true and correct.
116. Applicants must not submit application-specific material
through the Commission's Electronic Comment Filing System. Further, as
discussed herein, parties submitting information related to their
applications should use caution to ensure that their submissions do not
contain confidential information or communicate information that would
violate 47 CFR 1.2105(c) or the limited information procedures adopted
for Auction 114. An applicant seeking to submit, outside the AAP,
information that might reflect non-public information, such as an
applicant's permit selection(s), upfront payment amount, or bidding
eligibility, should consider including in its email a request that the
filing or portions of the filing be withheld from public inspection
until the end of the prohibition on certain communications pursuant to
47 CFR 1.2105(c).
117. Questions about FCC Form 175 amendments should be directed to
the Auctions Division at <a href="/cdn-cgi/l/email-protection#2c4d594f584543421d1d186c4a4f4f024b435a">[email&#160;protected]</a> or (202) 418-0660.

IV. Information Procedures and Prohibited Communications

A. Information Procedures During the Auction Process

118. Consistent with past practice in most recent Commission
spectrum auctions, OEA and MB adopt the proposal to limit information
available in Auction 114 in order to discourage unproductive and anti-
competitive strategic behavior. Accordingly, OEA and MB will not
identify bidders placing particular bids until after the bidding has
closed. While OEA and MB generally make available to the public
information provided in each applicant's short-form application
following an initial review by Commission staff, OEA and MB will not
make public until after bidding has closed: (1) the construction
permits that an applicant selects for bidding in its short-form
application, (2) the amount of any upfront payment made by or on behalf
of an applicant, (3) any applicant's bidding eligibility, and (4) any
other bidding-related information

[[Page 51088]]

that might reveal the identity of the bidder placing a bid. An
applicant in a broadcast auction that is seeking a new entrant bidding
credit and has an attributable interest in no more than three mass
media facilities is required to disclose those facilities in its short-
form application and to indicate whether any such facility is in the
``same area'' as the permit(s) selected in its short-form application.
Because this information could reveal the permits selected by an
applicant, we will also not make public, until after bidding has
closed, any applicant's response to the question of whether a disclosed
existing mass media facility is in the ``same area'' as a selected
permit.
119. The limited information procedures used in past auctions have
helped safeguard against potential anticompetitive behavior such as
retaliatory bidding and collusion. One commenter, Mr. Tracy K. Wood,
objects to the use of anonymous bidding on the basis that each bidder
needs to know the ``capabilities and motivations'' of other bidders in
order to plan its own bidding strategy. In furtherance of this goal,
Mr. Wood proposes that OEA and MB provide full bidding information
about each bidder, including the construction permits selected by the
bidder on its short-form application and its bidding eligibility at the
end of each round, while replacing the bidder's name with a pseudonym
to hide its identity. Mr. Wood also suggests providing a mechanism for
a bidder to signal to other bidders when it is done bidding on an item
and would like to be outbid.
120. OEA and MB find that Mr. Wood's proposals would enable the
very types of anti-competitive strategic bidding behavior that the
limited information procedures are intended to prevent. Bidder
identities, even when the bidder is given a pseudonym, allow bidders to
send messages with their bids, making tacit collusion easier. For
example, if two bidders at the start of the auction see that they are
competing for the same two permits, they can use bid increments to
tacitly indicate which permit they value more. In this way, the two
bidders divide the two permits, and do so at a lower price than they
would have had they each bid against one another based on their
respective valuations for each permit. Likewise, the mechanism that Mr.
Wood proposes, by which a bidder can signal to other bidders when itis
done bidding on a permit and would like to be outbid, would facilitate
collusion by providing another channel through which bidders can
message one another during bidding. The longstanding limited
information procedures for Commission auctions, in combination with the
prohibited communications rule, are generally designed to deter
collusion and other types of undesirable strategic bidding, to ensure
that auction participants bid in a straightforward manner, and that the
licenses or permits are won by the bidder that values them the most.
Therefore, OEA and MB decline to adopt Mr. Wood's proposals. On the
whole, the competitive benefits associated with limiting information
disclosure support adoption of such procedures and outweigh any
perceived benefits of full disclosure.
121. Under the limited information procedures (sometimes also
referred to as anonymous bidding) OEA and MB adopt herein, after the
close of each round of bidding in Auction 114, they will make public
for each permit the current provisionally winning bid amount, the
minimum acceptable bid amount for the following round, and the number
of new bids placed on the permit during the round. These reports will
be publicly accessible.
122. Throughout the auction, OEA and MB will provide bidders with
secure access to certain non-public bidding information while bidding
is ongoing. For example, bidders will be able to view their own level
of eligibility during the auction.
123. After the close of bidding, bidders' permit selections,
upfront payment amounts, bidding eligibility, bids, and other bidding-
related information will be made publicly available.
124. OEA and MB warn applicants that direct or indirect
communication to other applicants or the public disclosure of non-
public information (e.g., reductions in eligibility, identities of
bidders) could violate the Commission's rule prohibiting certain
communications. Therefore, to the extent an applicant believes that
such a disclosure is required by law or regulation, including
regulations issued by the SEC, OEA and MB strongly urge that the
applicant consult with Commission staff in the Auctions Division before
making such disclosure.

B. Prohibited Communications and Compliance With Antitrust Laws

125. The rules prohibiting certain communications set forth in 47
CFR 1.2105(c) and 73.5002(d) apply to each ``applicant'' in Auction
114. 47 CFR 1.2105(c)(1) provides that, subject to specified
exceptions, after the deadline for filing a short-form application, all
applicants are prohibited from cooperating or collaborating with
respect to, communicating with or disclosing, to each other in any
manner the substance of their own, or each other's, or any other
applicant's bids or bidding strategies (including post-auction market
structure), or discussing or negotiating settlement agreements, until
after the down payment deadline.
1. Entities Subject to 47 CFR 1.2105(c)
126. An ``applicant'' for purposes of this rule includes all
``controlling interests'' in the entity submitting the short-form
application, as well as all holders of interests amounting to 10% or
more of the entity (including institutional investors and asset
management companies), and all officers and directors of that entity.
Under 47 CFR 1.2105(c), a party that submits an application becomes an
``applicant'' under the rule at the short-form application filing
deadline, and that status does not change based on later developments,
including failure to become a qualified bidder.
2. Prohibition Applies Until Down Payment Deadline
127. The prohibition in 47 CFR 1.2105(c) on certain communications
begins at an auction's short-form application filing deadline and ends
at the auction's down payment deadline after the auction closes, which
will be announced in a future public notice. To be clear,
communications that occur even after bidding has ended and the auction
has closed, but before the down payment deadline, are still subject to
47 CFR 1.2105(c).
3. Scope of Prohibition on Certain Communications; Prohibition on Joint
Bidding Agreements
128. 47 CFR 1.2105(c) prohibits certain communications between
applicants for an auction, regardless of whether the applicants seek
permits in the same geographic area or market. The rule also prohibits
any ``joint bidding arrangements,'' including arrangements relating to
the permits being auctioned that address or communicate, directly or
indirectly, bidding at the auction, bidding strategies, including
arrangements regarding price or the specific permits on which to bid,
and any such arrangements relating to the post-auction market
structure. The rule allows for limited exceptions for communications
within the scope of any arrangement consistent with the exclusion from
the Commission's rule prohibiting joint bidding, provided such
arrangement is disclosed on the applicant's short-form application.
Applicants may communicate pursuant to any pre-existing agreements,
arrangements, or understandings relating to the permits being auctioned

[[Page 51089]]

that are solely operational or that provide for the transfer or
assignment of permits, provided that such agreements, arrangements, or
understandings are disclosed on their application and do not both
relate to the permits at auction and address or communicate bids
(including amounts), bidding strategies, or the particular permits on
which to bid or the post-auction market structure.
129. In addition to express statements of bids and bidding
strategies, the prohibition against communicating ``in any manner''
includes public disclosures as well as private communications and
indirect or implicit communications. Consequently, an applicant must
take care to determine whether its auction-related communications may
reach another applicant.
130. Parties subject to 47 CFR 1.2105(c) should take special care
in circumstances where their officers, directors, and employees may
receive information directly or indirectly relating to any applicant's
bids or bidding strategies, even if the officers, directors, or
employees are not involved in their company's participation in the
auction or if the information received is wholly unsolicited. Such
information may be deemed to have been received by the applicant under
certain circumstances. For example, Commission staff have found that,
where an individual serves as an officer and director for two or more
applicants, the bids and bidding strategies of one applicant are
presumed to be conveyed to the other applicant through the shared
officer, which creates an apparent violation of the rule.
131. Subject to the limited exceptions for communications within
the scope of any arrangement consistent with the exclusion from the
Commission's rule prohibiting joint bidding, 47 CFR 1.2105(c)(1)
prohibits applicants from communicating with specified other parties
only with respect to ``their own, or each other's, or any other
applicant's bids or bidding strategies.'' The Prohibited Communications
Guidance Public Notice, 80 FR 63215 (October 19, 2015), released in
advance of the Broadcast Incentive Auction (Auction 1000) reviewed the
scope of the prohibition generally, as well as specific variations on
the prohibition that were unique to Auction 1000. As the Commission
explained therein, a communication conveying ``bids or bidding
strategies (including post-auction market structure)'' must also relate
to the ``[permits] being auctioned'' in order to be covered by the
prohibition. Thus, the prohibition is limited in scope and does not
apply to all communications between or among the specified parties. The
Commission consistently has made clear that application of the rule
prohibiting communications has never required total suspension of
essential ongoing business. Entities subject to the prohibition may
negotiate agreements during the prohibition period, provided that the
communications involved do not relate to both: (1) the licenses or
permits being auctioned and (2) bids or bidding strategies or post-
auction market structure.
132. Accordingly, business discussions and negotiations that are
unrelated to bidding in Auction 114 and that do not convey information
about the bids or bidding strategies of an applicant, including the
post-auction market structure, are not prohibited by the rule.
Moreover, not all auction-related information is covered by the
prohibition. For example, communicating merely whether a party has or
has not applied to participate in Auction 114 will not violate the
rule. In contrast, communicating, among other things, how a party will
participate, including whether or not a party plans to submit an
upfront payment and the upfront payment amount, specific bid amounts,
and/or whether or not the party is placing or intends to place bids,
would convey bids or bidding strategies and would be prohibited.
133. While 47 CFR 1.2105(c) does not prohibit business discussions
and negotiations among auction applicants that are unrelated to the
auction, each applicant must remain vigilant not to communicate,
directly or indirectly, information that affects, or could affect, bids
or bidding strategies. Certain discussions, even if they do not
directly address the permits offered in Auction 114, still might touch
upon subject areas that relate to bids and bidding strategies or to
post-auction market structure, which could convey price or geographic
information related to bidding strategies. Such subject areas include,
but are not limited to, management, sales, local marketing agreements,
and other transactional agreements.
134. OEA and MB caution applicants that bids or bidding strategies
may be communicated outside situations that involve one party subject
to the prohibition communicating privately and directly with another
such party. For example, the Commission has warned that prohibited
``communications concerning bids and bidding strategies may include
communications regarding capital calls or requests for additional funds
in support of bids or bidding strategies to the extent such
communications convey information concerning the bids and bidding
strategies directly or indirectly.'' Moreover, the Commission found a
violation of the rule against prohibited communications when an
applicant used the Commission's bidding system to disclose ``its
bidding strategy in a manner that explicitly invited other auction
participants to cooperate and collaborate . . . in specific markets,''
and it has placed auction participants on notice that the use of its
bidding system ``to disclose market information to competitors will not
be tolerated and will subject bidders to sanctions.''
135. Likewise, when completing a short-form application, each
applicant should avoid any statements or disclosures that may violate
47 CFR 1.2105(c), particularly in light of the limited information
procedures in effect for Auction 114. Specifically, an applicant should
avoid including any information in its short-form application that
might convey information regarding its permit selections, such as
referring to certain markets when describing agreements, including any
information in application attachments that will be publicly available
that may otherwise disclose the applicant's permit selections, or using
applicant names that refer to permits being offered.
136. Applicants also should be mindful that communicating non-
public application or bidding information publicly or privately to
another applicant may violate 47 CFR 1.2105(c) even though that
information subsequently may be made public during later periods of the
application or bidding processes.
4. Communicating With Third Parties
137. 47 CFR 1.2105(c) does not prohibit an applicant from
communicating bids or bidding strategies to a third party, such as a
consultant or consulting firm, counsel, or lender. An applicant should
take appropriate steps, however, to ensure that any third party it
employs for advice pertaining to its bids or bidding strategies does
not become a conduit for prohibited communications to other specified
parties, as that would violate the rule. For example, an applicant
might require a third party, such as a lender, to sign a non-disclosure
agreement before the applicant communicates any information regarding
bids or bidding strategy to the third party. Within third-party firms,
separate individual employees, such as attorneys or auction
consultants, may advise individual applicants on bids or bidding
strategies, as long as such firms implement firewalls and other

[[Page 51090]]

compliance procedures that prevent such individuals from communicating
the bids or bidding strategies of one applicant to other individuals
representing separate applicants. Although firewalls and/or other
procedures should be used, their existence is not an absolute defense
to liability for violating the rule.
138. As the Commission has noted in other spectrum auctions, in the
case of an individual, the objective precautionary measure of a
firewall is not available. As a result, an individual that is privy to
bids or bidding information of more than one applicant presents a
greater risk of becoming a conduit for a prohibited communication. OEA
and MB will take the same approach to interpreting the prohibited
communications rule in Auction 114. OEA and MB emphasize that whether a
prohibited communication has taken place in a given case will depend on
all the pertinent facts, including who possessed what information, what
information was conveyed to whom, and the course of bidding in the
auction.
139. OEA and MB remind potential applicants that they may discuss
the short-form application or bids for specific permits with the
counsel, consultant, or expert of their choice before the short-form
application deadline. Furthermore, the same third-party individual
could continue to give advice after the short-form application deadline
regarding the application, provided that no information pertaining to
bids or bidding strategies, including permits selected on the short-
form application, is conveyed to that individual from any of the
applicants the individual advises. OEA and MB remind potential
applicants, however, that no person may serve as an authorized bidder
for more than one applicant in Auction 114.
140. Applicants also should use caution in their dealings with
other parties, such as members of the press, financial analysts, or
others who might become conduits for the communication of prohibited
bidding information. For example, even though communicating that it has
applied to participate in this auction will not violate the rule, an
applicant's statement to the press or a statement on social media that
it intends to stop bidding or does not intend to bid at all in an
auction could give rise to a finding of a 47 CFR 1.2105 violation.
Similarly, an applicant's public statement of intent not to place bids
during bidding in Auction 114 could also violate the rule.
5. 47 CFR 1.2405(c) Certifications
141. By electronically submitting its FCC Form 175, each applicant
for Auction 114 certifies its compliance with 47 CFR 1.2105(c) and
73.5002(d). If an applicant has a non-controlling interest with respect
to more than one application, then the applicant must certify that it
has established internal control procedures to preclude any person
acting on behalf of the applicant from possessing information about the
bids or bidding strategies of more than one applicant or communicating
such information with respect to either applicant to another person
acting on behalf of and possessing such information regarding another
applicant. The mere filing of a certifying statement as part of an
application, however, will not outweigh specific evidence that a
prohibited communication has occurred, nor will it preclude the
initiation of an investigation when warranted. Any applicant found to
have violated these communication prohibitions may be subject to
sanctions.
6. Duty To Report Prohibited Communications
142. 47 CFR 1.2105(c)(4) requires that any applicant that makes or
receives a communication that appears to violate 47 CFR 1.2105(c) must
report such communication in writing to the Commission immediately, and
in no case later than five business days after the communication
occurs. Each applicant's obligation to report any such communication
continues beyond the five-day period after the communication is made,
even if the report is not made within the five-day period.
7. Procedures for Reporting Prohibited Communications
143. A party reporting any information or communication pursuant to
47 CFR 1.65(a), 1.2105(a)(2), or 1.2105(c)(4) must take care to ensure
that any report of a prohibited communication does not itself give rise
to a violation of 47 CFR 1.2105(c). For example, a party's report of a
prohibited communication could violate the rule by communicating
prohibited information to other parties specified under the rule
through the use of Commission filing procedures that allow such
materials to be made available for public inspection.
144. An applicant must file only a single report concerning a
prohibited communication and must file that report with the Commission
personnel expressly charged with administering the Commission's
auctions. This rule is designed to minimize the risk of inadvertent
dissemination of information in such reports. Any reports required by
47 CFR 1.2105(c) must be filed consistent with the instructions set
forth in the Auction 114 Procedures Public Notice. For Auction 114,
such reports must be submitted to the Chief of the Auctions Division,
Office of Economics and Analytics, by email to <a href="/cdn-cgi/l/email-protection#8aebffe9fee3e5e4bbbbbecaece9e9a4ede5fc">[email&#160;protected]</a>. If
you have any questions about filing such a report, contact Auctions
Division staff at <a href="/cdn-cgi/l/email-protection#43223620372a2c2d727277032520206d242c35">[email&#160;protected]</a> or (202) 418-0660 for further
guidance.
145. Given the potential competitive sensitivity of public
disclosure of information in such a report, a party seeking to report
such a prohibited communication should consider submitting its report
with a request that the report or portions of the submission be
withheld from public inspection by following the procedures specified
in 47 CFR 0.459. OEA and MB encourage such parties to coordinate with
the Auctions Division staff about the procedures for submitting such
reports.
8. Additional Information Concerning Prohibition on Certain
Communications in Commission Auctions
146. A summary listing of documents issued by the Commission and
OEA/MB addressing the application of 47 CFR 1.2105(c) is available on
the Commission's auction web page at <a href="http://www.fcc.gov/summary-listing-documents-addressing-application-rule-prohibiting-certain-communications">www.fcc.gov/summary-listing-documents-addressing-application-rule-prohibiting-certain-communications</a>.
9. Antitrust Laws
147. Regardless of compliance with the Commission's rules,
applicants remain subject to the antitrust laws, which are designed to
prevent anticompetitive behavior in the marketplace. Compliance with
the disclosure requirements of 47 CFR 1.2105(c)(4) will not insulate a
party from enforcement of the antitrust laws. For instance, a violation
of the antitrust laws could arise out of actions taking place well
before any party submits a short-form application. The Commission has
cited a number of examples of potentially anticompetitive actions that
would be prohibited under antitrust laws: for example, actual or
potential competitors may not agree to divide territories in order to
minimize competition, regardless of whether they split a market in
which they both do business, or whether they merely reserve one market
for one and another market for the other.
148. To the extent OEA and MB become aware of specific allegations
that suggest that violations of the federal

[[Page 51091]]

antitrust laws may have occurred, they may refer such allegations to
the United States Department of Justice for investigation. If an
applicant is found to have violated the antitrust laws or the
Commission's rules in connection with its participation in the
competitive bidding process, then it may be subject to a forfeiture and
may be prohibited from participating further in Auction 114 and in
future auctions, among other sanctions.

V. Bidding

A. Auction Structure

1. Simultaneous Multiple-Round Auction
149. In the Auction 114 Comment Public Notice, OEA and MB proposed
to auction all construction permits listed in Attachment A of the
Auction 114 Procedures Public Notice in a single auction using the
Commission's standard simultaneous multiple-round auction format. This
type of auction offers every construction permit for bid at the same
time and consists of successive bidding rounds in which qualified
bidders may place bids on individual construction permits. OEA and MB
received no comment on this proposal, and this proposal is adopted.
Unless otherwise announced, bids will be accepted on all construction
permits in each round of the auction until bidding stops on every
construction permit.
2. FCC Auction Bidding System
150. All bidding will take place remotely either through the FCC
Auction Bidding System (bidding system) or by telephonic bidding.
Please note that telephonic bid assistants are required to use a script
when entering bids placed by telephone. Telephonic bidders are
therefore reminded to allow sufficient time to bid by placing their
calls well in advance of the close of a round. The length of a call to
place a telephonic bid may vary; please allow a minimum of ten minutes.
151. An Auction 114 bidder's ability to bid on specific
construction permits is determined by two factors: (1) the construction
permits selected by that applicant in its FCC Form 175 and (2) the
bidder's bidding eligibility measured in bidding units. The bidding
system will allow bidders to submit bids on only those construction
permits the bidder selected on its FCC Form 175.
152. In order to access the bidding function of the bidding system,
bidders must be logged in during a bidding round using the passcode
generated by the RSA token and a personal identification number (PIN)
created by the bidder. Bidders are strongly encouraged to print their
bid summary for each round after they have completed all of their
activity for that round.
3. Availability of Bidding Information
153. As discussed herein, in the Auction 114 Comment Public Notice,
OEA and MB proposed to employ limited information procedures for
Auction 114, including limiting the availability of bidding information
during the auction, and OEA and MB adopt that proposal here. Limited
information about the results of a round will be made public after the
conclusion of the round. Specifically, after a round closes, OEA and MB
will make available for each construction permit its current
provisionally winning bid amount, the minimum acceptable bid amount for
the following round, and the number of new bids placed on the permit
during the round. The reports will be publicly accessible. Moreover,
after Auction 114 closes, OEA and MB will make available complete
reports of all bids placed during each round of the auction, that
include bidder identities.
154. As in past Commission spectrum auctions, bidders will have
secure access to certain non-public bidding information while bidding
is ongoing. Specifically, after each round ends, and before the next
round begins, OEA and MB will make the following information available
to individual bidders:

<bullet> The bidder's activity, based on all bids in the previous
round; and
<bullet> Summary statistics of the bidder's bidding/bid-related
actions in each round, including the construction permits on which it
bid and the price it bid for each of those construction permits, the
result of each of its bids, whether it has any provisionally winning
bids, and remaining activity rule waivers.

155. As discussed more fully herein, limiting the availability of
bidding information during the auction balances OEA's and MB's interest
in providing bidders with sufficient information about the status of
their own bids and bidding across all construction permits to allow
them to bid confidently and effectively, while restricting the
availability of information that may facilitate identification of
bidders placing particular bids, which could potentially lead to
undesirable strategic bidding.
4. Round Structure
156. The first round of bidding for Auction 114 will begin on
[[Tuesday, February 2, 2027]]. The initial bidding schedule will be
announced in a public notice listing the qualified bidders, which is
released at least one week before the start of bidding in the auction.
Each bidding round is followed by the release of round results.
Multiple bidding rounds may be conducted each day.
157. In the Auction 114 Comment Public Notice, OEA and MB proposed
to retain the discretion to change the bidding schedule in order to
foster an auction pace that reasonably balances speed with the bidders'
need to study round results and adjust their bidding strategies. OEA
and MB received no comment on these proposals, and they adopt them for
Auction 114. OEA and MB may change the amount of time for the bidding
rounds, the amount of time between rounds, or the number of rounds per
day, depending upon bidding activity and other factors, by prior
announcement.
5. Eligibility and Activity Rules
158. As discussed herein, OEA and MB will use upfront payments to
determine initial (maximum) bidding eligibility (as measured in bidding
units) for Auction 114. The amount of the upfront payment submitted by
a bidder determines initial bidding eligibility, the maximum number of
bidding units on which a bidder may be active (bid or hold
provisionally winning bids) in a given round. As noted herein, each
construction permit is assigned a specific number of bidding units as
listed in Attachment A to the Auction 114 Comment Public Notice.
Bidding units assigned to each construction permit do not change as
prices rise during the auction. Upfront payments are not attributed to
specific construction permits. Rather, a bidder may place bids on any
of the construction permits selected on its FCC Form 175 as long as the
total number of bidding units associated with those construction
permits does not exceed the bidder's current eligibility. Eligibility
cannot be increased during the auction; it can only remain the same or
decrease. Thus, in calculating its upfront payment amount, an applicant
must determine the maximum number of bidding units on which it may wish
to bid or hold provisionally winning bids in any single round, and
submit an upfront payment amount covering that total number of bidding
units. At a minimum, an applicant's upfront payment must cover the
bidding units for at least one of the construction permits it selected
on its short-form application. The total upfront payment does not
affect the total dollar amount a bidder may bid on any given

[[Page 51092]]

construction permit. OEA and MB received no comments on the bidding
eligibility proposals, and these proposals are adopted.
159. To ensure that an auction closes within a reasonable period of
time, an activity rule requires bidders to bid actively throughout the
auction, rather than wait until late in the auction before
participating. Bidders are required to be active (bid or hold
provisionally winning bids) on a specified percentage of their current
bidding eligibility during each round of the auction. A bidder's
activity level in a round is the sum of the bidding units associated
with construction permits covered by the bidder's new bids in the
current round and provisionally winning bids from the previous round.
The minimum required activity is expressed as a percentage of the
bidder's current eligibility. Failure to maintain the requisite
activity level will result in the use of an activity rule waiver, if
any remain, or a reduction in the bidder's eligibility, possibly
curtailing or eliminating the bidder's ability to place additional bids
in the auction.
160. In the Auction 114 Comment Public Notice, OEA and MB proposed
that in each bidding round, a bidder seeking to maintain its current
bidding eligibility be required to be active on 100% of its bidding
eligibility. No commentors objected to this proposal, and OEA and MB
adopt it for Auction 114.
6. Activity Rule Waivers
161. In the Auction 114 Comment Public Notice, OEA and MB proposed
that each bidder in the auction be provided with three activity rule
waivers, which are principally a mechanism for a bidder to avoid the
loss of bidding eligibility in the event that exigent circumstances
prevent it from bidding in a particular round. OEA and MB received no
comments on this issue.
162. Therefore, OEA and MB adopt this proposal to provide bidders
with three activity rule waivers. Use of an activity rule waiver
preserves the bidder's eligibility despite its activity in the current
round being below the required minimum activity level. An activity rule
waiver applies to an entire round of bidding and not to a particular
construction permit. A bidder may use an activity rule waiver in any
round of the auction as long as the bidder has not used all of its
waivers.
163. The bidding system will assume that a bidder that does not
meet the activity requirement would prefer to use an activity rule
waiver (if available) rather than lose bidding eligibility. Therefore,
the system will automatically apply a waiver at the end of any bidding
round in which a bidder's activity level is below the minimum required
unless (1) the bidder has no activity rule waiver remaining, or (2) the
bidder overrides the automatic application of a waiver by reducing
eligibility, therefore meeting the activity requirement. If the bidder
has no waivers remaining and does not satisfy the required activity
level, the bidder's current eligibility will be permanently reduced,
possibly curtailing or eliminating the ability to place additional bids
in the auction.
164. A bidder with insufficient activity may wish to reduce its
bidding eligibility rather than use an activity rule waiver. If so, the
bidder must affirmatively override the automatic waiver mechanism
during the bidding round by using the reduce eligibility function in
the bidding system. In this case, the bidder's eligibility would be
permanently reduced to bring it into compliance with the activity rule
described above. Reducing eligibility is an irreversible action once
the round has closed, and a bidder cannot regain its lost bidding
eligibility.
7. Auction Stopping Rule
165. For Auction 114, OEA and MB proposed to employ a simultaneous
stopping rule approach, which means all construction permits remain
available for bidding until bidding stops on every construction permit.
Specifically, bidding will close on all construction permits after the
first round in which no bidder submits any new bid on a construction
permit for which the bidder is not the provisionally winning bidder.
OEA and MB received no comments on these proposals and adopt the
proposed stopping rule.
166. OEA and MB also proposed in the Auction 114 Comment Public
Notice to retain discretion to attempt to change the pace of the
auction in certain circumstances, for example, where the auction is
proceeding unusually slowly or quickly, there is minimal overall
bidding activity, or it appears likely that the auction will not close
within a reasonable period of time or will close prematurely. For
example, OEA and MB may adjust the pace of the auction by changing the
number of bidding rounds per day and/or the minimum acceptable bids.
OEA and MB proposed to retain the discretion to exercise any of these
options with or without prior announcement during the auction. OEA and
MB received no comments on this proposal, and adopt it for Auction 114.
8. Auction Delay, Suspension, or Cancellation
167. In the Auction 114 Comment Public Notice, OEA and MB proposed
that, by public notice or by announcement through the bidding system,
they may delay, suspend, or cancel bidding in the auction in the event
of natural disaster, technical obstacle, network interruption,
administrative or weather necessity, evidence of an auction security
breach or unlawful bidding activity, or for any other reason that
affects the fair and efficient conduct of competitive bidding. OEA and
MB received no comment on this issue.
168. Because this approach has proven effective in resolving
exigent circumstances in previous auctions, OEA and MB adopt these
proposals regarding auction delay, suspension, or cancellation. By
public notice or by announcement through the bidding system, OEA and MB
may delay, suspend, or cancel bidding in the auction in the event of
natural disaster, technical obstacle, network interruption,
administrative or weather necessity, evidence of an auction security
breach or unlawful bidding activity, or for any other reason that
affects the fair and efficient conduct of competitive bidding. In such
cases, OEA and MB, in their sole discretion, may elect to resume the
auction starting from the beginning of the current round or from some
previous round, or cancel the auction in its entirety. OEA and MB
emphasize that they will exercise this authority solely at their
discretion.

B. Bidding Procedures

1. Minimum Opening Bids and Acceptable Bid Amounts
169. 47 U.S.C. 309(j) calls upon the Commission to prescribe
methods by which a reasonable reserve price will be required or a
minimum opening bid established when applications for FCC licenses or
construction permits are subject to auction (i.e., because they are
mutually exclusive), unless the Commission determines that a reserve
price or minimum opening bid is not in the public interest. Consistent
with this mandate, the Commission directed that, prior to the start of
each auction, comment be sought on the use of a minimum opening bid
and/or reserve price.
170. In the Auction 114 Comment Public Notice, OEA and MB proposed
not establishing separate reserve prices for the construction permits
in Auction 114. OEA and MB received no comment on this proposal and
adopt it for Auction 114. The Auction 114 Comment

[[Page 51093]]

Public Notice did, however, propose to establish minimum opening bids
for each construction permit, reasoning that a minimum opening bid,
which has been used in other auctions, is an effective tool for
accelerating the competitive bidding process. A minimum opening bid was
proposed for each permit by taking into consideration the type of
service and class of facility offered, market size, population covered
by the proposed broadcast facility, and recent broadcast transaction
data.
171. SSR suggests that OEA and MB revisit the minimum opening bids
proposed in the Auction 114 Comment Public Notice for six FM allotments
located on the island of Kauai, Hawaii. SSR asserts that ``the three
Kauai FM Class A allotments each carry minimum opening bids that exceed
the opening bids assigned to [the] three Kauai FM Class C3 allotments,
notwithstanding the substantially greater facilities and service
potential associated with the Class C3 channels.'' OEA and MB disagree
that there is greater service potential associated with the Class C3
allotments than there is with the three Class A allotments. The three
Class A allotments, in fact, cover substantially higher service
populations than the three Class C3 allotments, and the proposed
minimum opening bids for those licenses accounted for this. OEA and MB
disagree, therefore, with SSR's suggestion that the minimum opening
bids proposed for these six allotments are inconsistent. As a result,
and because OEA and MB received no other comments on their proposed
minimum opening bids, OEA and MB adopt the minimum opening bid amounts
proposed in the Auction 114 Comment Public Notice. The specific minimum
opening bid and upfront payment amounts for each construction permit
are set forth in Attachment A to the Auction 114 Procedures Public
Notice.
172. In the Auction 114 Comment Public Notice, OEA and MB proposed
that in each round a qualified bidder will be able to place a bid on a
given construction permit in any of up to nine different amounts. Under
the proposal, the bidding system interface will list the nine
acceptable bid amounts for each construction permit. OEA and MB
received no comments on this proposal, and adopt it as proposed.
173. In the Auction 114 Comment Public Notice, OEA and MB proposed
to use a minimum acceptable bid increment percentage of 10% to
calculate the first of the acceptable bid amounts. This means that the
minimum acceptable bid amount for a construction permit will be
approximately 10% greater than the provisionally winning bid amount for
the construction permit. To calculate the eight additional acceptable
bid amounts, OEA and MB proposed in the Auction 114 Comment Public
Notice to use an additional bid increment percentage of 5%. OEA and MB
did not receive any comments on these proposals to use 10% and 5%
respectively in their calculation of nine acceptable bid amounts for
each construction permit. OEA's and MB's experience in previous
broadcast auctions assures them that a minimum acceptable bid increment
percentage of 10% and an additional bid increment percentage of 5% are
sufficient to ensure active bidding. Therefore, OEA and MB will begin
the auction with a minimum acceptable bid increment percentage of 10%
and an additional bid increment percentage of 5%.
174. In Auction 114, the minimum acceptable bid amount for a
construction permit will be equal to its minimum opening bid amount
until there is a provisionally winning bid for the construction permit.
After there is a provisionally winning bid for a construction permit,
the minimum acceptable bid amount will be calculated by multiplying the
provisionally winning bid amount by one plus the minimum acceptable bid
percentage--i.e., provisionally winning bid amount * 1.10, rounded up.
175. In Auction 114, the bidding system will calculate the eight
additional bid amounts by multiplying the minimum acceptable bid amount
by the additional bid increment percentage of 5%, and that result
(rounded up) is the additional increment amount. The first additional
acceptable bid amount equals the minimum acceptable bid amount plus the
additional increment amount. The second additional acceptable bid
amount equals the minimum acceptable bid amount plus two times the
additional increment amount; the third additional acceptable bid amount
is the minimum acceptable bid amount plus three times the additional
increment amount; etc. Because the additional bid increment percentage
is 5%, the calculation of the additional increment amount is (minimum
acceptable bid amount) * (0.05), rounded up. The first additional
acceptable bid amount equals (minimum acceptable bid amount) +
(additional increment amount); the second additional acceptable bid
amount equals (minimum acceptable bid amount) + (2*(additional
increment amount)); the third additional acceptable bid amount equals
(minimum acceptable bid amount) + (3*(additional increment amount));
etc.
176. In the Auction 114 Comment Public Notice, OEA and MB proposed
to retain the discretion to change the minimum acceptable bid increment
percentage, the additional bid increment percentage, and the number of
acceptable bid amounts if OEA and MB determine that circumstances so
dictate, consistent with past practice. OEA and MB also proposed to
retain the discretion to limit (a) the amount by which a minimum
acceptable bid for a construction permit may increase compared with the
corresponding provisionally winning bid, and (b) the additional
increment amount. For example, OEA and MB could set a $1,000 limit on
increases in minimum acceptable bid amounts over provisionally winning
bids. Thus, if calculating a minimum acceptable bid using the minimum
acceptable bid increment percentage results in a minimum acceptable bid
amount that is $1,200 higher than the provisionally winning bid on a
construction permit, the minimum acceptable bid amount would instead be
capped at $1,000 above the provisionally winning bid.
177. OEA and MB received no comments on these proposals concerning
changes of bid amounts, and adopt the discretion to utilize them. OEA
and MB typically exercise this discretion based on their monitoring of
ongoing bidding, and reserve such discretion for Auction 114. If OEA
and MB exercise this discretion, they will alert bidders by
announcement in the bidding system during the auction.
2. Provisionally Winning Bids
178. Consistent with practice in past auctions, the bidding system,
at the end of each bidding round, will determine a provisionally
winning bid for each construction permit based on the highest bid
amount received for that permit. A provisionally winning bid will
remain the provisionally winning bid until there is a higher bid on the
same construction permit at the close of a subsequent round.
Provisionally winning bids at the end of the auction become the winning
bids.
179. The bidding system will assign a pseudo-random number to each
bid submitted in the round. If identical high bid amounts are submitted
on a construction permit in any given round (i.e., tied bids), the tied
bid with the lowest pseudo-random number wins the tiebreaker and
becomes the provisionally winning bid. The remaining bidders, as well
as the provisionally winning bidder, can submit higher bids in
subsequent rounds. However, if the auction were to close with no other
bids being placed,

[[Page 51094]]

the winning bidder would be the one that placed the provisionally
winning bid. If the construction permit receives any bids in a
subsequent round, the provisionally winning bid again will be
determined by the highest bid amount received for the construction
permit.
180. As a reminder, provisionally winning bids count toward
activity for purposes of the activity rule.
3. Bid Removal
181. In the Auction 114 Comment Public Notice, OEA and MB explained
bid removal procedures in the bidding system. Each qualified bidder has
the option of removing any bids placed in a round provided that such
bids are removed before the close of that bidding round. By removing a
bid within a round, a bidder effectively ``unsubmits'' the bid.
Removing a bid will affect a bidder's activity because a removed bid no
longer counts toward bidding activity for the round. Once a round
closes, a bidder may no longer remove a bid. As stated in the Auction
114 Comment Public Notice, bidders will not be able to withdraw any bid
after the close of the round in which that bid was placed. Bidders are
cautioned to select bid amounts carefully because no bid withdrawals
will be allowed, even if a bid was mistakenly or erroneously made.
4. Bidding Results
182. After Auction 114 closes, OEA and MB will provide a means for
the public to view and download reports of all bids placed during each
round of the auction and all bid results, including bidder identities
and bid amounts.
5. Auction Announcements
183. Commission staff will use auction announcements to report
necessary information to bidders, such as schedule changes. All auction
announcements will be available by clicking a link in the bidding
system.

VI. Post-Auction Procedures

184. The public notice announcing the close of bidding and auction
results will be released several days after bidding has ended in
Auction 114. The Auction 114 Closing Public Notice will also establish
the deadlines for submitting down payments, final payments, and the
long-form applications (FCC Form 2100, Schedule 301-FM) for the
auction.

A. Down Payments

185. The Commission's rules provide that, unless otherwise
specified by public notice, within ten business days after release of
the auction closing public notice for Auction 114, each winning bidder
must submit sufficient funds (in addition to its upfront payment) to
bring its total amount of money on deposit with the Commission to 20%
of the net amount of its winning bids (gross bids less any applicable
new entrant bidding credits).

B. Final Payments

186. The Commission's rules provide that each winning bidder must
submit the balance of the net amount of its winning bids within ten
business days after the applicable deadline for submitting down
payments.

C. Long-Form Applications

187. The Commission's rules provide that within thirty days
following the close of bidding and notification to the winning bidders,
unless a longer period is specified by public notice, each winning
bidder must electronically submit a separate, properly completed long-
form application for each permit won, and required exhibits, along with
the applicable application filing fee. Winning bidders for FM
construction permits will electronically file FCC Form 2100, Schedule
301-FM, in MB's Licensing and Management System (LMS), and required
exhibits for each construction permit won through Auction 114. Each
Auction 114 winning bidder must submit a consolidated long-form and
short-form application filing fee with each separate long-form
application. See 47 CFR 1.1104, Table 3. This consolidated application
filing fee must be paid in addition to the winning bid amount. Winning
bidders claiming new entrant status must include an exhibit
demonstrating their eligibility for the bidding credit. Further
instructions on these and other filing requirements will be provided to
winning bidders in the auction closing public notice.
188. A winning bidder will be required to provide, as part of its
long-form application, any agreement or arrangement it has entered into
and a summary of the specific terms, conditions, and parties involved
in any agreement it has entered into. This applies to any bidding
consortia, joint venture, partnership, or agreement, understanding, or
other arrangement entered into relating to the competitive bidding
process, including any agreement relating to the post-auction market
structure. Failure to comply with the Commission's rules can result in
enforcement action.

D. Default and Disqualification

189. Any winning bidder that defaults or is disqualified after the
close of the auction (i.e., fails to remit the required down payment by
the specified deadline, fails to submit a timely long-form application,
fails to make full and timely final payment, or is otherwise
disqualified) is liable for a default payment as described in 47 CFR
1.2104(g)(2). A default payment consists of a deficiency payment, equal
to the difference between the amount of the Auction 114 bidder's
winning bid and the amount of the winning bid the next time a
construction permit covering the same spectrum is won in an auction,
plus an additional payment equal to a percentage of the defaulter's bid
or of the subsequent winning bid, whichever is less.
190. The percentage of the applicable bid to be assessed as an
additional payment for defaults in a particular auction is established
in advance of the auction. Accordingly, in the Auction 114 Comment
Public Notice, OEA and MB proposed to set the additional default
payment for this auction at 20% of the applicable bid. OEA and MB
received no comments on this proposal, and it is therefore adopted for
the reasons described in the Auction 114 Comment Public Notice.
191. Finally, in the event of a default, the Commission has the
discretion to re-auction the construction permit or offer it to the
next highest bidder (in descending order) at its final bid amount. In
addition, if a default or disqualification involves gross misconduct,
misrepresentation, or bad faith by an applicant, the Commission may
declare the applicant and its principals ineligible to bid in future
auctions, and may take any other action that it deems necessary,
including institution of proceedings to revoke any existing
authorizations held by the applicant.

E. Refund of Remaining Upfront Payment Balance

192. If a bidder is due a refund, the bidder must request a refund
in writing with the information listed below. All refunds of upfront
payment balances will be returned to the payer of record as identified
on the FCC Form 159, or on the wire transfer, unless the payer submits
written authorization instructing otherwise. Bidders are encouraged to
use the Refund icon found in the Review or Modify Existing Applications
table on the FRN Selection screen in the AAP or the of the Refund Form
link available on the Auction Application Submit Confirmation page in
the AAP to access the form. After the required information is completed
on the blank form, the form must be printed, signed, and submitted to
the

[[Page 51095]]

Commission by email or fax as instructed below.
193. If you have selected not to access the Refund Form, the
Commission is requesting that all information listed below be supplied
in writing:

Name, address, contact and phone number of Bank
Routing Number (capable to accepting ACH payments)
Account Number to Credit
Name of Account Holder
FCC Registration Number (FRN)

All refund requests must be submitted to the Revenue & Receivables
Operations Group/Auctions either by fax at (202) 418-2843 or by email
to <a href="/cdn-cgi/l/email-protection#cb9999848c9ca2b9ae8daab3aeb88bada8a8e5aca4bd">[email&#160;protected]</a>.

Note: Refund processing generally takes up to two weeks to
complete. Bidders with questions about refunds should contact Scott
Radcliffe at (202) 418-7518 or Theresa Meeks at (202) 418-2945.

VII. Procedures Matters

A. Paperwork Reduction Act

194. The Office of Management and Budget (OMB) has approved the
information collections in the Application to Participate in an FCC
Auction, FCC Form 175. The Auction 114 Procedures Public Notice does
not contain new or modified information collection requirements subject
to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13.
Therefore, it does not contain any new or modified information
collection burden for small business concerns with fewer than 25
employees pursuant to the Small Business Paperwork Relief Act of 2002,
Public Law 107-198. The Commission will be submitting a non-substantive
change request to OMB concerning OMB 3060-0600 related to the
certification requirement for Auction 114 applicants adopted herein,
and the Commission will not require Auction 114 applicants to make this
certification in FCC Form 175 until OMB has approved the non-
substantive change request.

B. Congressional Review Act

195. The Commission has determined, and Administrator of the Office
of Information and Regulatory Affairs, Office of Management and Budget,
concurs, that this rule is ``non-major'' under the Congressional Review
Act, 5 U.S.C. 804(2). The Commission will send a copy of this Auction
114 Procedures Public Notice to Congress and the Government
Accountability Office pursuant to the Congressional Review Act, 5
U.S.C. 801(a)(1)(A).

C. Final Regulatory Flexibility Analysis

196. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA), the Commission incorporated Initial Regulatory
Flexibility Analyses (IRFAs) in the Broadcast Competitive Bidding
Notice released in November 1997, and other Commission Notice of
Proposed Rulemakings (collectively, Competitive Bidding NPRMs) pursuant
to which Auction 114 will be conducted. Final Regulatory Flexibility
Analyses (FRFAs) likewise were prepared in the Broadcast Competitive
Bidding Order and other Commission rulemaking orders (collectively,
Competitive Bidding Orders) pursuant to which Auction 114 will be
conducted. In this proceeding, OEA and MB incorporated those prior
FRFAs in an IRFA in the Auction 114 Comment Public Notice, and sought
written public comment on the proposals in the Auction 114 Comment
Public Notice, including comment on the IRFA. No comments were filed
addressing the IRFA. This FRFA supplements the FRFAs in the Competitive
Bidding Orders, and reflects the actions taken in the Auction 114
Procedures Public Notice, which establishes the procedures to be used
for Auction 114. This FRFA conforms to the RFA, and it (or summaries
thereof) will be published in the Federal Register.
197. Need for, and Objectives of, the Public Notice. The Auction
114 Procedures Public Notice implements auction procedures for those
entities that seek to bid in Auction 114 to acquire construction
permits for FM broadcast stations. The Auction 114 Procedures Public
Notice resolves all open issues, and addresses comments filed in
response to the Auction 114 Comment Public Notice. The Auction 114
Procedures Public Notice adopts procedural rules and terms and
conditions governing Auction 114, and the post-auction application and
payment processes, as well as sets the minimum opening bid amounts for
each of the FM broadcast construction permits that are subject to being
assigned by competitive bidding.
198. To promote the efficient and fair administration of the
competitive bidding process for all Auction 114 participants, including
small entities, the Auction 114 Procedures Public Notice adopts the
following procedures:

<bullet> A requirement that any applicant seeking to participate in
Auction 114 certify in its short-form application, under penalty of
perjury, that it has read the public notice adopting procedures for
Auction 114 and that it has familiarized itself with those procedures
and the requirements for obtaining a construction permit for an FM
station;
<bullet> Use of anonymous bidding/limited information procedures,
which the Commission will not make public until after bidding has
closed: (1) the permits that an applicant selects for bidding in its
short-form application; (2) the amount of any upfront payment made by
or on behalf of an applicant; (3) any applicant's bidding eligibility;
and (4) any other bidding-related information that might reveal the
identity of the bidder placing a bid;
<bullet> Establishment of an additional default payment of 20%
under 47 CFR 1.2104(g)(2) in the event a winning bidder defaults or is
disqualified after the auction closes;
<bullet> Use of a simultaneous multiple-round auction format,
consisting of sequential bidding rounds with a simultaneous stopping
rule;
<bullet> Provision of delegated authority to OEA, in conjunction
with MB, to exercise its discretion to delay, suspend, or cancel
bidding in Auction 114 for any reason that affects the ability of the
competitive bidding process to be conducted fairly and efficiently;
<bullet> Retention by OEA of discretion to adjust the bidding
schedule in order to manage the pace of Auction 114;
<bullet> Adoption of a specific minimum opening bid amount, a
specific number of bidding units, and a specific upfront payment amount
for each construction permit to be offered in this auction;
<bullet> Establishment of a bidder's initial bidding eligibility in
bidding units based on that bidder's upfront payment;
<bullet> Establishment of an activity rule requiring the bidder to
be active on 100% of its bidding eligibility in each bidding round;
<bullet> Provision of three activity waivers for each bidder to
allow it to preserve eligibility during the course of the auction;
<bullet> Use of minimum acceptable bid amounts and additional bid
increments, along with a proposed methodology for calculating such
amounts, while retaining discretion to change the methodology if
circumstances dictate; and
<bullet> A procedure for breaking ties if identical high bid
amounts are submitted on a construction permit in a given round.

199. Summary of Significant Issues Raised by Public Comments in
Response to the IRFA. No comments were filed addressing the impact of
the procedures and policies on small entities.
200. Response to Comments by the Chief Counsel for the Small
Business Administration Office of Advocacy.

[[Page 51096]]

Pursuant to the Small Business Jobs Act of 2010, which amended the RFA,
the Commission is required to respond to any comment filed by the Chief
Counsel for Advocacy of the Small Business Administration (SBA), and to
provide a detailed statement of any change made to the proposed
procedures as a result of those comments. The Chief Counsel did not
file any comments in response to the procedures proposed in the Auction
114 Comment Public Notice.
201. Description and Estimate of the Number of Small Entities to
Which the Procedures 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 adopted rules. 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. 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. The SBA establishes small business size standards that agencies
are required to use when promulgating regulations relating to small
businesses; agencies may establish alternative size standards for use
in such programs, but must consult and obtain approval from SBA before
doing so.
202. OEA's and MB's actions, over time, may affect small entities
that are not easily categorized at present. OEA and MB therefore
describe three broad groups of small entities that could be directly
affected by their actions. In general, a small business is an
independent business having fewer than 500 employees. These types of
small businesses represent 99.9% of all businesses in the United
States, which translates to 34.75 million businesses. Next, ``small
organizations'' are not-for-profit enterprises that are independently
owned and operated and not dominant in their field. While OEA and MB do
not have data regarding the number of non-profits that meet that
criteria, over 99 percent of nonprofits have fewer than 500 employees.
Finally, ``small governmental jurisdictions'' are defined as cities,
counties, towns, townships, villages, school districts, or special
districts with populations of less than fifty thousand. Based on the
2022 U.S. Census of Governments data, OEA and MB estimate that at least
48,724 out of 90,835 local government jurisdictions have a population
of less than 50,000.
203. The specific competitive bidding procedures and minimum
opening bid amounts described in the Auction 114 Procedures Public
Notice will affect all applicants participating in Auction 114. The
number of entities that may apply to participate in Auction 114 is
unknown. Based on the number of applicants in prior FM auctions, OEA
and MB estimate that the number of applicants for Auction 114 may range
from approximately 130 to 260. This estimate is based on the number of
applicants who filed short-form applications to participate in previous
open auctions of FM construction permits held to date, an average of
1.7 short-form applications were filed per construction permit offered,
with a median of 1.2 applications per permit. The actual number of
applicants for Auction 114 could vary significantly as any individual's
or entity's decision to participate may be affected by a number of
factors beyond the Commission's control.
204. The procedures adopted in the Auction 114 Procedures Public
Notice will apply to small entities in the industries identified in the
chart in Table 1 by their six-digit North American Industry
Classification System (NAICS) codes and corresponding SBA size standard
and in the chart in Table 2. Where available, OEA and MB also provide
additional information regarding the number of potentially affected
entities in the industries identified in Tables 1 and 2.

Table 1--2022 U.S. Census Bureau Data by NAICS Code
--------------------------------------------------------------------------------------------------------------------------------------------------------
SBA size
Regulated industry NAICS code standard Total firms Total small % Small firms
(million) firms
--------------------------------------------------------------------------------------------------------------------------------------------------------
Radio Broadcasting Stations........................................ 516110 $47 2,616 2,136 81.65
--------------------------------------------------------------------------------------------------------------------------------------------------------

Affected Entities in this industry include FM Translator Stations
and Low Power FM Stations, Educational Broadcasting Services (Radio),
Low Power FM Stations, NCE and Public Broadcast Stations (Radio).

Table 2--Broadcast Entity Data
----------------------------------------------------------------------------------------------------------------
Broadcast station owners (as of August 8, 2025) SBA size standard ($47 million)
----------------------------------------------------------------------------------------------------------------
Number
Affected entity commercial Small firms % Small
licensed entities
----------------------------------------------------------------------------------------------------------------
Radio Stations (AM & FM) Groups.............................. 2,881 2,863 99.38
----------------------------------------------------------------------------------------------------------------

As of December 31, 2025, there were 4,342 licensed commercial AM
radio stations and 6,589 licensed commercial FM radio stations, for a
combined total of 10,931 commercial radio stations. There were 4,755
licensed noncommercial (NCE) FM radio stations, 1,994 low power FM
(LPFM) stations, and 8,867 FM translators and boosters. Additionally,
there were 1,389 licensed commercial television stations, 388 licensed
noncommercial educational (NCE) television stations, 397 Class A TV
stations, 1,760 LPTV stations and 3,092 TV translator stations.
205. Description of Economic Impact and Projected Reporting,
Recordkeeping, and Other Compliance Requirements for Small Entities.
The RFA directs agencies to describe the economic impact of adopted
rules on small entities, as well as projected reporting, recordkeeping
and other compliance requirements, including an estimate of the classes
of small entities which will be subject to the requirement and the type
of professional skills necessary for preparation of the report or
record.

[[Page 51097]]

206. For Auction 114, no new reporting, recordkeeping, or other
compliance requirements for small entities or other auction applicants
were proposed. Moreover, complying with the adopted procedures should
not require small entities to hire professionals to participate, given
that the procedures are consistent with existing Commission procedures
used in prior FM broadcast auctions and new participants will have
numerous resources available to them at no cost from the Commission.
The Commission designed the auction application process itself to
minimize reporting and compliance requirements for applicants,
including small business applicants, and the Auction 114 Procedures
Public Notice remains consistent with this approach. For example, in
the first part of the Commission's two-phased auction application
process, parties desiring to participate in an auction file
streamlined, short-form applications in which they certify under
penalty of perjury as to their qualifications, and to having reviewed
the Auction 114 Procedures Public Notice. Eligibility to participate in
bidding is based on an applicant's short-form application and
certifications, as well as remittance of a timely and sufficient
upfront payment. In the second phase of the process, winning bidders
file a more comprehensive long-form application. Thus, an applicant
that fails to become a winning bidder does not need to file a long-form
application or provide the additional showings and more detailed
demonstrations required of a winning bidder, thereby saving small
entities and other applicants the time and expense associated with
unnecessary filings.
207. Auction 114 applicants, including small entities, will become
qualified to bid in Auction 114 only if they comply with the following:
(1) submission of a short-form application that is timely and is found
to be substantially complete, and (2) timely submission of a sufficient
upfront payment for at least one of the construction permits that the
applicant selected on its FCC Form 175. In accordance with the terms of
47 CFR 1.2105(b)(2), an applicant whose application is found to contain
deficiencies will have a limited opportunity to bring its application
into compliance with the Commission's competitive bidding rules during
a resubmission window. In addition, each Auction 114 applicant must
maintain the accuracy of its previously filed short-form application
electronically using the FCC Auction Application Portal (AAP) in the
Auction Application System (AAS).
208. In the second phase of the process, there are additional
compliance requirements only applicable to winning bidders. As with
other winning bidders, any small entity that is a winning bidder will
be required to comply with the terms of the following rules, among
others: (1) 47 CFR 1.2107(b), by submitting as a down payment within 10
business days after release of the auction closing public notice
sufficient funds (in addition to its upfront payment) to bring its
total amount of money on deposit with the Commission for Auction 114 to
20% of the amount of its winning bid or bids; (2) 47 CFR 1.2109(a), by
submitting within 10 business days after the down payment deadline the
balance of the amount for each of its winning bids; and (3) 47 CFR
73.5005(a), by electronically filing a properly completed long-form
application and required exhibits for each construction permit won
through Auction 114.
209. Further, as required by 47 CFR 1.2105(c), reports concerning
prohibited communications must be filed with the Chief of the Auctions
Division, as detailed in the Auction 114 Procedures Public Notice.
210. Discussion of Steps Taken to Minimize the Significant Economic
Impact on Small Entities, and Significant Alternatives Considered. The
RFA requires an agency to provide ``a description of the steps the
agency has taken to minimize the significant economic impact on small
entities . . . including a statement of the factual, policy, and legal
reasons for selecting the alternative adopted in the final rule and why
each one of the other significant alternatives to the rule considered
by the agency which affect the impact on small entities was rejected.''
211. OEA and MB intend that the procedures adopted in the Auction
114 Procedures Public Notice, meant to facilitate participation in
Auction 114, will result in both operational and administrative cost
savings for small entities and other auction participants. Most of the
processes and procedures adopted for Auction 114 are consistent with
existing Commission policies and procedures used in prior FM broadcast
auctions. Thus, some small entities may already be familiar with such
procedures and have the processes and procedures in place to facilitate
compliance and minimize their costs to comply. All auction
participants, including small entities and those that may be new to the
Commission's auction process, will have access to numerous resources
that will be available at no cost from the Commission. For example,
small entities and other auction participants will be provided with
various materials on the pre-bidding process in advance of the short-
form application filing window, which include step-by-step instructions
on how to complete the short-form application (FCC Form 175). Moreover,
the Commission has taken steps to ensure that the AAS is simple to use,
and that FCC Form 175 is easy to complete. In addition to the
educational materials, small entities and other would-be participants
will have access to Commission personnel to help guide their
participation in Auction 114, which should help facilitate
participation without the need to hire professionals.
212. The Commission also offers a wide variety of free educational
materials, demonstrations, and other information and resources
regarding the bidding system that will be used in Auction 114. In
addition, the Commission, prior to the beginning of bidding in this
auction, will hold a mock auction to allow qualified bidders the
opportunity to familiarize themselves with both the processes and
systems that will be used in Auction 114. During the auction,
participants will be able to access and participate in bidding via the
internet using a web-based system, or telephonically, providing two
cost-effective methods of participation and avoiding the cost of travel
for in-person participation. Further, small entities as well as other
auction participants will be able to avail themselves of a telephone
hotline for assistance with auction processes and procedures as well as
a technical support telephone hotline to assist with issues such as
access to or navigation on AAS and use of the FCC's auction bidding
system. These mechanisms are made available to facilitate participation
by all qualified bidders and may result in significant cost savings for
small business entities that utilize these mechanisms. These resources,
coupled with the description and communication of the bidding
procedures before bidding begins in Auction 114, should ensure that the
auction will be administered predictably, efficiently and fairly, thus
providing certainty for small entities as well as other auction
participants.
213. Alternatively, throughout this proceeding, OEA and MB
considered various processes and procedures beyond those discussed
above but determined that their approach here minimizes significant
economic impact to small entities as much as possible.

[[Page 51098]]

Moreover, OEA and MB note that commenters did not object to the
proposals OEA and MB discuss above, nor did they suggest other types of
resources or materials the Commission could provide beyond those OEA
and MB offered.
214. Report to Congress. The Commission will send a copy of the
Auction 114 Procedures Public Notice, including this FRFA, in a report
to Congress pursuant to the Congressional Review Act. In addition, the
Commission will send a copy of the Auction 114 Procedures Public
Notice, including this FRFA to the Chief Counsel for Advocacy of the
SBA and will publish a copy of the Auction 114 Procedures Public Notice
and this FRFA (or summaries thereof) in the Federal Register.

Federal Communications Commission.
Gary Michaels,
Senior Deputy Chief, Auctions Division, Office of Economics and
Analytics.
[FR Doc. 2026-16133 Filed 8-6-26; 8:45 am]
BILLING CODE 6712-01-P

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