Sec.  95.816   Competitive bidding proceedings.

   (a) Mutually exclusive initial applications for 218–219 MHz Service licenses
   are  subject  to  competitive bidding. The general competitive bidding
   procedures set forth in part 1, subpart Q of this chapter will apply unless
   otherwise provided in this part.

   (b) Installment payments. Eligible Licensees that elect resumption pursuant
   to Amendment of part 95 of the Commission's Rules to Provide Regulatory
   Flexibility in the 218–219 MHz Service, Report and Order and Memorandum
   Opinion and Order, FCC 99–239 (released September 10, 1999) may continue to
   participate in the installment payment program. Eligible Licensees are those
   that were current in installment payments ( i.e. less than ninety days
   delinquent) as of March 16, 1998, or those that had properly filed grace
   period requests under the former installment payment rules. All unpaid
   interest from grant date through election date will be capitalized into the
   principal as of Election Day creating a new principal amount. Installment
   payments must be made on a quarterly basis. Installment payments will be
   calculated based on new principal amount as of Election Day and will fully
   amortize over the remaining term of the license. The interest rate will
   equal the rate for five-year U.S. Treasury obligations at the grant date.

   (c) Eligibility for small business provisions. (1) A small business is an
   entity that, together with its affiliates and controlling interests, has
   average gross revenues not to exceed $15 million for the preceding three
   years.

   (2) A very small business is an entity that, together with its affiliates
   and controlling interests, has average gross revenues not to exceed $3
   million for the preceding three years.

   (d) Bidding credits. A winning bidder that qualifies as a small business, as
   defined in this subsection, or a consortium of small businesses may use the
   bidding credit specified in  Sec. 1.2110(f)(2)(ii) of this chapter. A winning
   bidder that qualifies as a very small business, as defined in this section,
   or  a  consortium  of very small businesses may use the bidding credit
   specified in accordance with  Sec. 1.2110(f)(2)(i) of this chapter.

   (e) Winning bidders in Auction No. 2, which took place on July 28–29, 1994,
   that, at the time of auction, met the qualifications under the Commission's
   rules then in effect, for small business status will receive a twenty-five
   percent bidding credit pursuant to Amendment of Part 95 of the Commission's
   Rules to Provide Regulatory Flexibility in the 218–219 MHz Service, Report
   and Order and Memorandum Opinion and Order, FCC 99–239 (released September
   10, 1999).

   [ 64 FR 59660 , Nov. 3, 1999, as amended at  66 FR 9219 , Feb. 7, 2001;  67 FR 45378 , July 9, 2002;  68 FR 43001 , July 21, 2003]