FCC Record, Volume 19, No. 8, Pages 5879 to 6813, March 31 - April 13, 2004 Page: 6,282
xiii, 5879-6813 p. ; 28 cm.View a full description of this book.
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the difference between the second highest bid times one plus the minimum percentage increment, rounded,
and the second highest bid.
The Bureau retains the discretion to change the minimum acceptable bids and bid increments if it
determines that circumstances so dictate. The Bureau will do so by announcement in the FCC Automated
Auction System. We seek comment on these proposals.
D. High Bids
At the end of a bidding round, a high bid for each license will be determined based on the highest gross bid
amount received for the license. In the event of identical high bids on a license in a given round (i.e., tied
bids), we propose to use a random number generator to select a single high bid from among the tied bids. If
the auction were to end with no higher bids being placed for that license, the winning bidder would be the
one that placed the selected high bid. However, the remaining bidders, as well as the high bidder, can
submit higher bids in subsequent rounds. If any bids are received on the license in a subsequent round, the
high bid again will be determined by the highest gross bid amount received for the license.
A high bid will remain the high bid until there is a higher bid on the same license at the close of a
subsequent round. A high bid from a previous round is sometimes referred to as a "standing high bid."
Bidders are reminded that standing high bids confer activity.21
E. Information Regarding Bid Withdrawal and Bid Removal
For Auction No. 57, we propose the following bid removal and bid withdrawal procedures. Before the
close of a bidding period, a bidder has the option of removing any bid placed in that round. By removing
selected bids in the bidding system, a bidder may effectively "unsubmit" any bid placed within that round.
A bidder removing a bid placed in the same round is not subject to a withdrawal payment. Once a round
closes, a bidder may no longer remove a bid.
A high bidder may withdraw its standing high bids from previous rounds using the withdraw function in the
bidding system. A high bidder that withdraws its standing high bid from a previous round is subject to the
bid withdrawal payment provisions of the Commission rules.22 We seek comment on these bid removal
and bid withdrawal procedures.
In the Part I Third Report and Order, the Commission explained that allowing bid withdrawals facilitates
efficient aggregation of licenses and the pursuit of efficient backup strategies as information becomes
available during the course of an auction. The Commission noted, however, that, in some instances,
bidders may seek to withdraw bids for improper reasons. The Bureau, therefore, has discretion, in
managing the auction, to limit the number of withdrawals to prevent any bidding abuses. The Commission
stated that the Bureau should assertively exercise its discretion, consider limiting the number of rounds in
which bidders may withdraw bids, and prevent bidders from bidding on a particular market if the Bureau
finds that a bidder is abusing the Commission's bid withdrawal procedures.23
Applying this reasoning, we propose to limit each bidder in Auction No. 57 to withdrawing standing high
bids in no more than two rounds during the course of the auction. To permit a bidder to withdraw bids in
more than two rounds would likely encourage insincere bidding or the use of withdrawals for anticompetitive
purposes. The two rounds in which withdrawals may be utilized will be at the bidder's
21 See Section I.C. "Activity Rules," supra.
22 47 C.F.R. 1.2104(g), 1.2109.
23 Part I Third Report and Order, 13 FCC Rcd at 460 150.6282
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United States. Federal Communications Commission. FCC Record, Volume 19, No. 8, Pages 5879 to 6813, March 31 - April 13, 2004, book, April 2004; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc4077/m1/423/: accessed April 25, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.