WASHINGTON-The U.S. Federal Communications Commission plans to re-auction returned C-block PCS (Personal Communications Services) licenses 23 March, 1999.
The FCC will use the same eligibility rules used for the original C-block auction. All applicants qualifying as entrepreneurs under the FCC’s rules and all original C-block auction applicants whose applications were accepted for filing are eligible to participate in the re-auction. C-block licensees that surrendered their licenses pursuant to the disaggregation or amnesty with prepayment credit options are ineligible to reacquire their surrendered licenses by any means, including re-auction, until 23 March, 2001. Entities in default are not permitted to participate in the re-auction.
The FCC has set a ceiling for the minimum opening bids at no more than 10 percent of the amount of the net high bid in the original auction. In addition, upfront payments will be no higher than US6 cents per megahertz per population. Former defaulters participating in the re-auction will be required to pay upfront 50 percent more than other participants.
The C-block auction became a problem for the FCC two years ago when winners in the original auction pledged US$10.2 billion for licenses to offer personal communications services. After the auction, some winners found it difficult to raise the necessary capital to pay for the licenses.
