FCC Record, Volume 28, No. 2, Pages 876 to 1828, February 1 - February 26, 2013 Page: 893
This book is part of the collection entitled: Federal Communications Commission Record and was provided to UNT Digital Library by the UNT Libraries Government Documents Department.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
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 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."
53. For Auction 95, the Bureau proposes to limit each bidder to withdrawing provisionally
winning bids in only one round during the course of the auction. To permit a bidder to withdraw bids in
more than one round may encourage insincere bidding or the use of withdrawals for anti-competitive
purposes. The round in which withdrawals may be used will be at the bidder's discretion, and there is no
limit on the number of provisionally winning bids that may be withdrawn during that round. Withdrawals
must be in accordance with the Commission's rules, including the bid withdrawal payment provisions
specified in section 1.2104(g).39 The Bureau seeks comment on these bid withdrawal procedures. If
commenters believe that each bidder should be allowed to withdraw provisionally winning bids in more
than one round during the course of the auction, they should state how many bid withdrawal rounds they
seek and explain what specific factors lead them to that conclusion. If commenters believe that bidders in
this auction should not be permitted to withdraw any bids, they should discuss their reasoning for this
suggestion.4
C. Post-Auction Payments
1. Interim Withdrawal Payment Percentage
54. The Bureau seeks comment on the appropriate percentage of a withdrawn bid that should
be assessed as an interim withdrawal payment in the event that a final withdrawal payment cannot be
determined at the close of the auction. In general, the Commission's rules provide that a bidder that
withdraws a bid during an auction is subject to a withdrawal payment equal to the difference between the
amount of the withdrawn bid and the amount of the winning bid in the same or subsequent auction(s).4' If
a bid is withdrawn and no subsequent higher bid is placed and/or the license is not won in the same
auction, the final withdrawal payment cannot be calculated until after the close of a subsequent auction in
which a higher bid for the license (or the equivalent to the license) is placed or the license is won.42
When that final payment cannot yet be calculated, the bidder responsible for the withdrawn bid is
assessed an interim bid withdrawal payment, which will be applied toward any final bid withdrawal
payment that is ultimately assessed.43 Section 1.2104(g)(l) of the Commission rules requires that the
percentage of the withdrawn bid to be assessed as an interim bid withdrawal payment be between three
percent and twenty percent and that it be set in advance of the auction.44
3s Id.
39 See 47 C.F.R. 1.2104(g). See also 47 C.F.R. 1.2109.
40 See Implementation of the Commercial Spectrum Enhancement Act and Modernization of the Commission's
Competitive Bidding Rules and Procedures, WT Docket No. 05-211, FCC 06-4, Report and Order, 21 FCC Rcd
891, 902-903 1 29, 904 n.57 (2006) ("CSEA/Part I Report and Order") (discussing considerations, such as nature
and availability of licenses offered at auction and bidders' need to aggregate licenses, that may factor into decision
to permit bid withdrawals).
4' See 47 C.F.R. 1.2104(g)(1). The withdrawal payment amount is deducted from any upfront payments or down
payments that the withdrawing bidder has deposited with the Commission. No withdrawal payment is assessed for a
withdrawn bid if either the subsequent winning bid or any of the intervening subsequent withdrawn bids equals or
exceeds that withdrawn bid. Id.
42 Id.
43 Id.
SSee id., as amended by CSEA/Part 1 Report and Order, 21 FCC Red 891, 902-903 29, 904 n.57.893
Upcoming Pages
Here’s what’s next.
Search Inside
This book can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Book.
United States. Federal Communications Commission. FCC Record, Volume 28, No. 2, Pages 876 to 1828, February 1 - February 26, 2013, book, February 2013; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc177412/m1/34/: accessed April 24, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.