Sec. 21.951  MDS competitive bidding procedures.

    (a) The following competitive bidding procedures will generally be 
used in MDS auctions. Additional, specific procedures may be set forth 
by public notice. The Commission may also design and test alternative 
procedures. See 47 CFR 1.2103 and 1.2104.
    (1) Competitive bidding design. Simultaneous multiple round bidding 
will be used in MDS auctions, unless the Commission specifies by public 
notice the use of sequential oral (open outcry) bidding or sealed 
bidding (either sequential or simultaneous). Combinatorial bidding may 
also be used with any type of auction design.
    (2) Competitive bidding mechanisms. The Commission may utilize the 
following mechanisms in MDS auctions:
    (i) Sequencing. The Commission will establish and may vary the 
sequence in which the BTA service areas will be auctioned.
    (ii) Grouping. In the event the Commission uses either a 
simultaneous multiple round competitive bidding design or combinational 
bidding, the Commission will determine which BTA service areas will be 
auctioned simultaneously or in combination.
    (iii) Reservation price. The Commission may establish a reservation 
price, either disclosed or undisclosed, below which a BTA service area 
subject to auction will not be awarded.
    (iv) Minimum bid increments. The Commission will, by announcement 
before or during an MDS auction, require minimum bid increments in 
dollar or percentage terms.
    (v) Stopping rules. The Commission will establish stopping rules 
before or during multiple round MDS auctions in order to terminate an 
auction within a reasonable time.
    (vi) Activity Rules. The Commission will establish activity rules 
which require a minimum amount of bidding activity. In the event that 
the Commission establishes an activity rule in connection with a 
simultaneous multiple round auction, the Commission will allow bidders 
to request and to receive automatically waivers of such rule, the number 
of which will be determined by the Commission.
    (vii) Suggested minimum bid. The Commission may establish suggested 
minimum bids on each BTA service area subject to auction. Bids below the 
suggested minimum bid would count as activity under the activity rule 
only if no bids at or above the suggested minimum bid are received.
    (b) Identities of bidders. The Commission will generally release 
information concerning the identities of bidders before each auction but 
may choose, on an auction-by-auction basis, to withhold the identity of 
the bidders associated with bidder identification numbers. The 
Commission will announce by public notice before the MDS auction where 
the bidders' identities will be revealed.
    (c) Commission control of auction. The Commission may delay, 
suspend, or cancel an MDS auction in the event of a natural disaster, 
technical obstacle, evidence of security breach, unlawful bidding 
activity, administrative necessity, or for any other reason that affects 
the fair and efficient conduct of the competitive bidding. The 
Commission also has the authority, at its sole discretion, to resume the 
competitive bidding starting from the beginning of the current or some 
previous round or cancel the competitive bidding in its entirety.
[ 60 FR 36557 , July 17, 1995]