Comment Sought on Reserve Prices or Minimum Opening Bids for the General Wireless Communications Service (GWCS) in the 4660-4685 MHz Band; Formula Proposed for May 27 GWCS Auction

FEDERAL COMMUNICATIONS COMMISSION

[DA 98-162; Report No. AUC-98-19-A (Auction No. 19)]

Comment Sought on Reserve Prices or Minimum Opening Bids for the

General Wireless Communications Service (GWCS) in the 4660-4685 MHz

Band; Formula Proposed for May 27 GWCS Auction

AGENCY: Federal Communications Commission.

ACTION: Notice; seeking comment.

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SUMMARY: In this Public Notice, the Commission is seeking comment on a

proposed formula for calculating minimum opening bids for the General

Wireless Communications Service, Auction No. 19.

DATES: Comment deadline: February 13, 1998; reply deadline: February

20, 1998.

ADDRESSES: To file formally, parties must submit an original and four

copies to the Office of the Secretary, Federal Communications

Commission, Room 222, 1919 M Street N.W., Washington, DC 20554. In

addition, parties must submit one copy to Kathleen O'Brien Ham, Chief,

Auctions and Industry Analysis Division, Wireless Telecommunications

Bureau, Federal Communications Commission, Room 5202, 2025 M Street

N.W., Washington, D.C. 20554.

FOR FURTHER INFORMATION CONTACT: Kathryn Garland, Bob Reagle, or Arthur

Lechtman, Auctions and Industry Analysis Division, Wireless

Telecommunications Bureau, at (202) 418-0660.

SUPPLEMENTARY INFORMATION: This Public Notice was released on January

30, 1998, and is available in its entirety, including all attachments,

for inspection and copying during normal business hours in the FCC

Reference Center (Room 239), 1919 M Street, N.W., Washington, D.C., and

also may be purchased from the Commission's copy contractor,

International Transcription Services, (202) 857-3800, fax (202) 857-

3805, 1231 20th Street, N.W., Washington, D.C. 20036. It is also

available on the Commission's website at http://www.fcc.gov.

Summary of Action

I. Reserve Price or Minimum Opening Bid

1. The Balanced Budget Act of 1997 calls upon the Commission to

prescribe methods by which a reasonable reserve price will be required

or a minimum opening bid established when FCC licenses are subject to

auction (i.e., because they are mutually exclusive), unless the

Commission determines that a reserve price or minimum bid is not in the

public interest. Consistent with this mandate, the Commission has

directed the Wireless Telecommunications Bureau (``Bureau'') to seek

comment on the use of a minimum opening bid and/or reserve price prior

to the start of each auction. The Bureau was directed to seek comment

on the methodology to be employed in establishing each of these

mechanisms. Among other factors, the Bureau should consider the amount

of spectrum being auctioned, levels of incumbency, the availability of

technology to provide service, the size of the geographic service

areas, the extent of interference with other spectrum bands, and any

other relevant factors that could reasonably have an impact on

valuation of the spectrum being auctioned. The Commission concluded

that the Bureau should have the discretion to employ either or both of

these mechanisms for future auctions.

2. Normally, a reserve price is an absolute minimum price below

which an item will not be sold in a given auction. Reserve prices can

be either published or unpublished. A minimum opening bid, on the other

hand, is the minimum bid price set at the beginning of the auction

below which no bids are accepted. It is generally used to accelerate

the competitive bidding process. Also, in a minimum opening bid

scenario, the auctioneer generally has the discretion to lower the

amount later in the auction.

3. The Bureau recently announced the auction of 875 licenses for

the General Wireless Communications Service which is scheduled to begin

May 27, 1998. These licenses encompass the United States, the Northern

Mariana Islands, Guam, American Samoa, the United States Virgin Islands

and Puerto Rico. Specifically, the licenses include: (1) five licenses

in each of 172 geographic areas known as Economic Areas (EAs); (2) five

licenses in each of three EA-like areas, covering Guam and the Northern

Marianas, Puerto Rico and the U.S. Virgin Islands, and American Samoa.

4. In anticipation of this auction and in light of the Balanced

Budget Act, the Bureau proposes to establish minimum opening bids for

the GWCS auction, and retain discretion to lower the minimum opening

bids.

5. The Bureau believes a minimum opening bid, which has been

utilized in other auctions, is an effective bidding tool, and we

propose to use this approach in the GWCS auction. A minimum opening bid

will help to regulate the pace of the auction and provides flexibility.

6. Specifically, the Commission proposes the following formula for

calculating minimum opening bids in Auction No. 19:

[[Page 6182]]

For each EA License, the minimum opening bid = $0.0030 x 5 MHz

x population (based on 1990 census) with a minimum of no less than

$2500.00 per license.

Comment is sought on this proposal. If commenters believe that the

formula proposed above for minimum opening bids will result in

substantial numbers of unsold licenses, or is not a reasonable amount,

or should instead operate as a reserve price, they should explain why

this is so, and comment on the desirability of an alternative approach.

Commenters are advised to support their claims with valuation analyses

and suggested reserve prices or minimum opening bid levels or formulas.

In establishing the formula for minimum opening bids, we particularly

seek comment on such factors as, among other things, the amount of

spectrum being auctioned, levels of incumbency, the availability of

technology to provide service, the size of the geographic service

areas, issues of interference with other spectrum bands and any other

relevant factors that could reasonably have an impact on valuation of

the GWCS spectrum. (In order to assist them in their evaluation,

interested parties are advised to review Attachment A to this Public

Notice. This Attachment contains information provided to the Commission

by the National Telecommunications and Information Administration. It

describes certain government operations that operate in the bands

adjacent to GWCS spectrum and may cause interference in some regions.)

Alternatively, comment is sought on whether, consistent with the

Balanced Budget Act, the public interest would be served by having no

minimum opening bid or reserve price.

II. Other Issues

7. The Bureau finds that seeking comment on other auction-related

procedures for GWCS, prior to resolution of the issues raised in the

Part 1 Third Report and Order and Second Further Notice of Proposed

Rule Making, 63 FR 770 (January 7, 1998), would be premature.

Additionally, certain issues (such as the upfront payment formula and

competitive bidding design) were determined by the Commission in the

1995 GWCS Second Report and Order, 60 FR 40712 (August 9, 1995), and

may be further addressed by the Commission. Because the Commission is

subject to a statutory deadline of August 9, 1998, for licensing GWCS,

there is insufficient time to seek comment on auction procedures after

a ruling by the Commission. Rather, the Bureau finds that in these

circumstances, it is in the public interest to maximize the time

available to bidders between announcement of auction procedures and the

start of the auction. Therefore, the Bureau will announce specific

bidding procedures by public notice upon the release of the GWCS

auction rules.

III. Conclusion

8. Comments are due on or before February 13, 1998, and reply

comments are due on or before February 20, 1998. To file formally,

parties must submit an original and four copies to the Office of the

Secretary, Federal Communications Commission, Room 222, 1919 M Street

N.W., Washington, DC 20554. In addition, parties must submit one copy

to Kathleen O'Brien Ham, Chief, Auctions and Industry Analysis

Division, Wireless Telecommunications Bureau, Federal Communications

Commission, Room 5202, 2025 M Street N.W., Washington, D.C. 20554.

Comments and reply comments will be available for public inspection

during regular business hours in the FCC Public Reference Room, Room

239, 1919 M Street N.W., Washington, D.C. 20554.

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

Technical Data on the Navy Cooperative Engagement Capability (CEC)

System

I. Introduction

The purpose of this annex is to describe the technical

characteristics of the Cooperative Engagement Capability (CEC) Data

Distribution System. The CEC, a major new networking system being

developed by the military to provide connectivity between air, land,

and sea units for Theater Air Defense, will operate in the bands

immediately adjacent to the 4635-4685 MHz band. In order to minimize

mutual interference between the CEC system and prospective GWCS users,

certain CEC technical characteristics are being made available so that

GWCS equipment can be designed to reduce susceptibility to

interference. While details of the overall CEC program will remain

unavailable for public release, the technical parameters as described

below have been recently declassified to facilitate the release of this

basic data. (The point of contact at the Naval Electromagnetic Spectrum

Center is Mr. Scott A. Hoschar, at (202) 764-0312, or fax (202) 764-

2666. The CEC Program Office point of contact is Ms. Lalitha Avula,

PEO(TAD)CB12, at (703) 602-7413, or fax (703) 602-9181.)

II. Technical Parameters

The CEC operates in the bands above and below the 4635-4685 band.

In order to comply with NTIA regulations, the CEC authorized bandwidth

will be contained wholly within the adjacent Federal bands so that it

does not impinge upon the 4635-4685 MHz band. To achieve this, the

center frequency of any CEC transmitted signal will not fall within the

range 4624 to 4696 MHz.

The CEC system employs high power transmitters with directional

antennas to achieve a maximum e.i.r.p. of 58 dBW (630 kW). Under most

deployment scenarios, this maximum e.i.r.p. level will be directed

towards the operational areas defined below or out to sea. However,

under certain conditions, this maximum e.i.r.p. value may be directed

at the horizon and inland from aircraft operating in the areas defined

below.

The CEC emission characteristic was designed to be spectrally

efficient to exceed NTIA requirements for unwanted emissions. Specific

spectral parameters are as follows:

CEC Spectrum Roll-off Characteristics at 4635-4685 MHz

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Lower band edge Upper band edge

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Frequency power Frequency power

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(MHz) (dBW/4kHz) (MHz) (dBW/4kHz)

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4635.00....................................... -3.8 4685.00......................... -3.8

4636.10....................................... -7.8 4683.90......................... -7.8

4643.95....................................... -17.8 4676.05......................... -17.8

4653.00....................................... -37.8 4667.00......................... -37.8

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[[Page 6183]]

Transmitter Noise: Between 4649.6 and 4670.4 MHz, less than -87

dBW/Hz.

Harmonics and Spurious: Less than -80 dBc, that is, dB below

carrier power.

II. Operating Areas

The location in which large numbers of CEC nodes will be operating

includes a number of Naval/joint military exercise areas. CEC units

will be located on ships and aircraft, and at land based sites. The

normal operating areas are coastal waters and the contiguous land mass

extending 30 nautical mile inland. The operating altitude of CEC-

equipped aircraft will typically extend to 35,000 feet.

Cooperative Engagement Capability Operating Area Descriptions

Eight areas are identified as essential to support training with a

large number of Cooperating Units in a CEC network. The significance of

these areas is that airborne CEC units with high power transmitters are

expected to be flown directly overhead and extending out to sea in and

around existing military operational areas. The areas are as follows.

(1) The area extending 30 nautical miles (nm) inland from the

Atlantic Ocean between Wilmington, North Carolina (NC) and Lewes,

Delaware (DE) facilitate Atlantic Fleet exercises. The land based CEC

terminals at Wallops Island, Virginia (VA), Eastville, VA, and Dam

Neck, VA are within the boundaries established for the Atlantic Fleet

exercises. The Cherry Point and Onslow Bay NC areas are also included.

The Naval Air Warfare Center at Patuxent River, Maryland (MD) and

facilities at Greenville, South Carolina (SC), Jacksonville, Florida

(FL), and St. Petersburg, FL are not included in the inland areas. The

exclusion of the four sites does not preclude CEC Radio Frequency (RF)

emissions at these sites.

(2) The area extending 30 nm inland from the Gulf of Mexico between

the Louisiana (LA)-Mississippi (MS) state border and Panama City, FL,

to support Gulf of Mexico exercises. The area includes Gulfport and

Biloxi, MS, and Pensacola and Eglin AFL, FL.

(3) The area extending 30 nm inland from the Pacific Ocean between

Vandenberg Air Force Base, California (CA) and Point Mugu Naval Air

Station, CA, to support Pacific Fleet exercises.

(4) The area extending 30 nm inland from the Pacific Ocean between

Newport Beach, CA, and the CA-Mexico international border to support

Pacific Fleet exercises. The area includes Camp Pendleton, CA.

(5) The area that includes the White Sands Missile Range, New

Mexico (NM) and the Fort Bliss Military Reservation, Texas (TX) and NM

to support the joint Chiefs of Staff Roving Sands Exercise.

(6) The area that includes the China Lake Naval Weapons Center and

the Fort Irwin Military Reservation, CA.

(7) All of Hawaii, including the Pacific Missile Range Facility.

(8) All of Puerto Rico, including the Armed Forces Weapons Test

Facility.

Potentially Affected Economic Areas

The following Economic Areas appear to be within the parameters

defined by the Navy as being potentially affected by the CEC system.

Estimated power levels within the 4635-4685 MHz band should be

calculated on the basis of range from the boundaries of the CEC

operating areas and the technical parameters given above.

Cooperative Engagement Capability Impacted Economic Areas

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Economic

Economic area Name area

grouping

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3....................... Boston-Worcester-Lawrence-Lowell- 1

Brockton, MA-NH-RI-VT.

5....................... Albany-Schenectady-Troy, NY...... 1

6....................... Syracuse, NY-PA.................. 1

7....................... Rochester, NY-PA................. 1

8....................... Buffalo-Niagara Falls, NY-PA..... 1

9....................... State College, PA................ 1

10...................... New York-No. New Jer.-Long 1

Island, NY-NJ-CT-PA-MA-VT.

11...................... Harrisburg-Lebanon-Carlisle, PA.. 1

12...................... Philadelphia-Wilmington-Atl. 2

City, PA-NJ-DE-MD.

13...................... Washington-Baltimore, DC-MD-VA-WV- 2

PA.

14...................... Salisbury, MD-DE-VA.............. 2

15...................... Richmond-Petersburg, VA.......... 2

16...................... Staunton, VA-WV.................. 2

17...................... Roanoke, VA-NC-WV................ 2

18...................... Greensboro-Winston-Salem-High 2

Point, NC-VA.

19...................... Raleigh-Durham-Chapel Hill, NC... 2

20...................... Norfolk-Virginia Beach-Newport 2

News, VA-NC.

21...................... Greenville, NC................... 2

22...................... Fayetteville, NC................. 2

23...................... Charlotte-Gastonia-Rock Hill, NC- 2

SC.

24...................... Columbia, SC..................... 2

25...................... Wilmington, NC-SC................ 2

26...................... Charleston-North Charleston, SC.. 2

27...................... Augusta-Aiken, GA-SC............. 3

28...................... Savannah, GA-SC.................. 3

29...................... Jacksonville, FL-GA.............. 3

30...................... Orlando, FL...................... 3

33...................... Sarasota-Bradenton, FL........... 3

34...................... Tampa-St. Petersburg-Clearwater, 3

FL.

35...................... Tallahassee, FL-GA............... 3

36...................... Dothan, AL-FL-GA................. 3

37...................... Albany, GA....................... 3

38...................... Macon, GA........................ 3

39...................... Columbus, GA-AL.................. 3

40...................... Atlanta, GA-AL-NC................ 3

[[Page 6184]]

41...................... Greenville-Spartanburg-Anderson, 2

SC-NC.

42...................... Asheville, NC.................... 2

45...................... Johnson City-Kingsport-Bristol, 2

TN-VA.

46...................... Hickory-Morganton, NC-TN......... 2

47...................... Lexington, KY-TN-VA-WV........... 2

48...................... Charleston, WV-KY-OH............. 2

53...................... Pittsburgh, PA-WV................ 2

54...................... Erie, PA......................... 1

73...................... Memphis, TN-AR-MS-KY............. 3

74...................... Huntsville, AL-TN................ 3

75...................... Tupelo, MS-AL-TN................. 3

76...................... Greenville, MS................... 3

77...................... Jackson, MS-AL-LA................ 3

78...................... Birmingham, AL................... 3

79...................... Montgomery, AL................... 3

80...................... Mobile, AL....................... 3

81...................... Pensacola, FL.................... 3

82...................... Biloxi-Gulfport-Pascagoula, MS... 3

83...................... New Orleans, LA-MS............... 3

84...................... Baton Rouge, LA-MS............... 3

85...................... Lafayette, LA.................... 3

86...................... Lake Charles, LA................. 3

87...................... Beaumont-Port Arthur, TX......... 5

88...................... Shreveport-Bossier City, LA-AR... 3

89...................... Monroe, LA....................... 3

90...................... Little Rock-North Little Rock, AR 3

122..................... Wichita, KS-OK................... 5

126..................... Western Oklahoma, OK............. 5

127..................... Dallas-Fort Worth, TX-AR-OK...... 5

128..................... Abilene, TX...................... 5

129..................... San Angelo, TX................... 5

131..................... Houston-Galveston-Brazoria, TX... 5

135..................... Odessa-Midland, TX............... 5

136..................... Hobbs, NM-TX..................... 5

137..................... Lubbock, TX...................... 5

138..................... Amarillo, TX-NM.................. 5

139..................... Santa Fe, NM..................... 5

140..................... Pueblo, CO-NM.................... 5

141..................... Denver-Boulder-Greeley, CO-KS-NE. 5

151..................... Reno, NV-CA...................... 6

152..................... Salt Lake City-Ogden, UT-ID...... 5

153..................... Las Vegas, NV-AZ-UT.............. 6

154..................... Flagstaff, AZ-UT................. 5

155..................... Farmington, NM-CO................ 5

156..................... Albuquerque, NM-AZ............... 5

157..................... El Paso, TX-NM................... 5

158..................... Phoenix-Mesa, AZ-NM.............. 5

159..................... Tucson, AZ....................... 5

160..................... Los Angeles-Riverside-Orange 6

County, CA-AZ.

161..................... San Diego, CA.................... 6

162..................... Fresno, CA....................... 6

163..................... San Francisco-Oakland-San Jose, 6

CA.

164..................... Sacramento-Yolo, CA.............. 6

172..................... Honolulu, HI..................... 6

174..................... Puerto Rico and the U.S. Virgin 3

Islands.

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[FR Doc. 98-3085 Filed 2-5-98; 8:45 am]

BILLING CODE 6712-01-P