FCC Record, Volume 28, No. 4, Pages 2764 to 3699, March 18 - March 29, 2013 Page: 2,777
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Federal Communications Commission
further support; awarding support as long as the per-pop bid amount does not exceed the last bid by more
than twenty percent; or, if there is a set of tied bids all of which cannot be supported, awarding support to
that combination of bids that will most nearly exhaust the remaining funds.
39. Multiple-RoundAuction. If commenters support a multiple-round design, we seek comment
on appropriate methods for determining awardees under proposed auction design alternatives. In a
descending clock auction format, for example, the auction system would announce a per-pop price, and
bidders would submit bids for the eligible areas they would cover. If the cost of accepting those bids
(population in the areas bid on times the per-pop price) exceeds the budget, the price would be lowered.
In each round bidders would be required to satisfy an activity requirement, providing an incentive for
consistent bidding throughout the auction. Rounds would continue until the cost of accepting all current
bids was below the budget.
40. One issue that must be addressed is the case of more than one bid for the same area, since we
propose to award only one subsidy per area. A possible solution would be to continue running the clock
in those areas where there are multiple bids until only one bid remains. If the clock were initially stopped
when the budget requirement was just met, continuing to run the clock in the areas with multiple bids
would result in not spending all the funds. We seek comment on how to address this "overshooting."
Possible solutions may include permitting intra-round bids that allow bidders to indicate their change in
supply at specified prices between the opening and closing prices in each round.
B. Auction Information Procedures
41. Under the Commission's rules on competitive bidding for high-cost universal service support
adopted in the USF/ICC Transformation Order, the Bureaus have discretion to limit public disclosure of
certain bidder-specific application and bidding information until after the auction, as we do in the case of
spectrum license auctions.65 Consistent with practice in recent spectrum license auctions and in Auction
901, the Bureaus propose to conduct Auction 902 using procedures for limited information disclosure."
The Bureaus propose to withhold, until after the close of bidding and announcement of auction results, the
public release of information from bidders' short-form applications regarding their interest in particular
eligible census blocks. If a single-round auction is used, we also propose not to reveal any information
that may reveal the identities of bidders placing bids and taking other bidding-related actions. If we
decide to implement a descending simultaneous multiple round or descending clock auction, we may wish
to release additional information about bidding-related actions during the auction, and we seek comment
on what information should be released under alternative auction design proposals. After the close of
bidding, bidders' area selections, bids, and any other bidding-related actions and information would be
made publicly available. The Bureaus seek comment on their proposal to implement limited information
procedures in Auction 902.
C. Auction Structure
1. Bidding Period
42. The Bureaus will conduct Auction 902 over the Internet. For the single round of bidding in
Auction 901, we did not provide a telephonic bidding option. In Commission spectrum license auctions,
telephonic bidding has served as a backup to on-line bidding. We seek comment on whether telephonic
bidding should be available in Auction 902, particularly if we use a multiple-round format.
65 USF/ICC Transformation Order, 26 FCC Red at 17807, para. 431; see 47 C.F.R. 1.21003(b)(1). See also, e.g.,
Auction of 700 MHz Band Licenses Scheduled for January 24, 2008; Notice and Filing Requirements, Minimum
Opening Bids, Reserve Prices, Upfront Payments, and Other Procedures for Auctions 73 and 76, Public Notice, DA
07-4171, 22 FCC Red 18,141, 18,181-85 paras. 145-56 (2007); Auction of Advanced Wireless Services Licenses
Scheduled for June 29, 2006; Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments and
Other Procedures for Auction No. 66, Public Notice, FCC 06-47, 21 FCC Red 4562, 4600-05 paras. 140-57 (2006).
66 See Auction 901 Procedures Public Notice, 27 FCC Rcd at 4766-67, para. 147.
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United States. Federal Communications Commission. FCC Record, Volume 28, No. 4, Pages 2764 to 3699, March 18 - March 29, 2013, book, March 2013; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc177414/m1/30/: accessed September 24, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.