FCC Record, Volume 28, No. 4, Pages 2764 to 3699, March 18 - March 29, 2013 Page: 2,778
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Federal Communications Commission
43. The start time for bidding will be announced in a public notice to be released at least one
week before the start of the auction. We seek comment on this proposal.
2. Information Relating to Auction Delay, Suspension, or Cancellation
44. For Auction 902, the Bureaus propose that, by public notice or by announcement during the
auction, the Bureaus may delay, suspend, or cancel the auction in the event of natural disaster, technical
failures, 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.67 In
such cases, the Bureaus, in their sole discretion, may elect to resume the auction or cancel the auction in
its entirety. Network interruption may cause the Bureaus to delay or suspend the auction. The Bureaus
emphasize that exercise of this authority would be solely within the discretion of the Bureaus. The
Bureaus seek comment on this proposal.
D. Bidding Procedures
1. Maximum Bids and Reserve Prices
45. 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 establish maximum
acceptable per-unit bid amounts and reserve amounts, separate and apart from any maximum opening
46. The Bureaus concluded that for Auction 901, a reserve price was not needed to guard against
unreasonably high winning bids because cross-area competition for support from a budget that was not
likely to cover support for all of the areas receiving bids would constrain the bid amounts.69 We seek
comment on whether any maximum acceptable per-unit bid amounts, reserve amounts, or maximum
opening bid amounts would be appropriate for Auction 902. Although the $50 million budget available
for Auction 902 is less than the $300 million budget available for Auction 901, the number of eligible
census blocks is also significantly lower in this auction. Will cross-area competition for support
adequately constrain bid amounts? We further seek comment on what methods should be used to
calculate reserve prices and/or maximum or minimum bids if they are adopted. Commenters are advised
to support their claims with valuation analyses and suggested amounts or formulas. We also seek
comment on the appropriate policy if, at the reserve price, less than the full budget is exhausted.
2. Bid Removal
47. For Auction 902, the Bureaus propose and seek comment on bid removal procedures. In the
case of a single-round auction, we propose that before the end of the single round of bidding, a bidder
would have the option of removing any bid it has placed. By removing selected bids, a bidder may
effectively "undo" any of its bids placed within the single round of bidding. Once the single round of
bidding ends, a bidder may no longer remove any of its bids. For multiple-round auction designs, we
seek comment on potential bid removal mechanisms and whether bidders should be permitted to
withdraw bids from previous rounds and, if so, subject to what limitations.
E. Default Payments
48. In the USF/ICC Transformation Order, the Commission determined that a winning bidder in
a reverse auction for high-cost universal service support that defaults on its bid or on its performance
obligations will be liable for a default payment.70 Bidders selected by the auction process to receive
67 47 C.F.R. 1.21003(b)(11).
68 USF/ICC Transformation Order, 26 FCC Red at 17806, paras. 423-24; 47 C.F.R. 1.21003(b)(4).
69 Auction 901 Procedures Public Notice, 27 FCC Red at 4767-68, para. 152.
o See USF/ICC Transfonnation Order, 26 FCC Red at 17810, 17813-14, paras. 444, 458-61; 47 C.F.R.
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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/m1/31/: accessed December 15, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.