FCC Record, Volume 15, No. 3, Pages 1205 to 1858, Supplement Page: 1,236
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waiver would be in the public interest: or (ii) that in view of unique or unusual factual
circumstances of the instant case, application of the rule would be inequitable, unduly
burdensome or contrary to the public interest, or the applicant has no reasonable
alternative.15 We do not believe that your request meets the stringent requirements for
waiver of the Commission's rules.
Under the Commission's competitive bidding procedures, the bidder submitting
the highest bid during the course of the auction is designated the "high" or "winning"
bidder. The Commission's bid withdrawal payment rule, Section 1.2104(g), subjects a
bidder that withdraws a high bid during the course of the auction to a payment equal to
the difference between the amount of its high bid and the winning bid the next time the
license is offered at auction by the Commission.16 The bid withdrawal payment is either
the difference between the net withdrawn bid and the subsequent net winning bid, or the
gross withdrawn bid and the gross winning bid, whichever is less. No withdrawal
payment is assessed if the subsequent winning bid exceeds the withdrawn bid.
In your request for waiver, you argue that imposition of the bid withdrawal
payment would be unjust, as the payment would be greater than the winning bid for
License BEA 160E. You further argue that imposition of the bid withdrawal payment
does not promote the policy objectives found in 47 U.S.C. 309(j)(3)(C). As we
demonstrate below, your arguments are meritless.
As mandated by Section 309(j) of the Communications Act, the Commission
established a competitive bidding process that ensures that licenses are awarded to those
that value them most highly as indicated by submitting the highest bid.'7 The purpose of
bid withdrawal payments is to discourage insincere bidding. Insincere bidding, whether
frivolous or strategic, distorts the price information generated by the auction process and
reduces efficiency. Hence, bid withdrawal payments are essential to the functioning and
integrity of the auction process. 8 Absent the required showing, a waiver of the bid
15 47 C.F.R. 1.925(b)(3).
16 47 C.F.R. 1.2104(g).
17 47 U.S.C. 309(j).
18 See Implementation of Section 309(j) of the Communications Act-- Competitive Bidding,
Second Report and Order, 9 FCC Rcd. 2348, 2404. See also National Telecom PCS, Inc.. Request for
Waiver of Bid Withdrawal Payment, Order, DA 96-873 (rel. May 30, 1996) ("1996 National Telecom
PCS Order") (on delegated authority, the Wireless Telecommunications Bureau denied National Telecom
PCS's request for waiver of bid withdrawal payments on the grounds that it submitted an erroneous bid as
a result of a clerical error.); National Telecom PCS, Inc.. Request for Waiver of Bid Withdrawal Payment
and Application for Authority to Construct a Personal Communications System on Frequency Block C in
American Samoa, Market No. B492, Memorandum Opinion and Order, 12 FCC Rcd. 10163 (1997)
("1997 National Telcom PCS MO&O"); National Telecom PCS, Inc., Petition for Reconsideration
Request for Waiver of Bid Withdrawal Payment and Application for Authority to Construct a Personal
Communications System on Frequency Block C in American Samoa, Market No. B492, Order on
Reconsideration of Memorandum Opinion and Order, FCC 99-319, (rel. November 2, 1999) 1999 WL
993506 ("1999 National Telecom PCS Order on Recon.").
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United States. Federal Communications Commission. FCC Record, Volume 15, No. 3, Pages 1205 to 1858, Supplement, book, 2000; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc2992/m1/49/: accessed November 24, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.