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FCC Sets Auction Rules, Delays Start Date

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The FCC has released rules governing the upcoming 700 MHz spectrum auction, including moving the start date from Jan. 16 to Jan. 24, 2008. 

Bidding is to be anonymous and the FCC has set a reserve price on the whole auction of $10 billion. On the C block spectrum, to which the FCC has attached open-platform conditions, the commission has set an expected reserve price of $4.63 billion. The C block is the only swath of spectrum large enough to accommodate a new national wireless network.

If the reserve price on each block is not met, the spectrum will be re-auctioned; if the C-block does not meet its reserve, it will be re-auctioned without the open-platform conditions and also not necessarily with the same geographic groupings.

The commission also has agreed to supply smaller business with bidding credits; companies with gross revenues of $15 million to $40 million will receive a 15% discount on the winning bid price and companies with gross revenues of less than $15 million will get a 25% discount. The FCC has included rules for calculating revenue totals to keep smaller companies from bidding on behalf of larger companies.

In its public notice, the commission warned bidders against collusion and said that even statements to the press about an applicant's plans to participate or not participate could violate anti-collusion rules.

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