§  1.2203   Competitive bidding mechanisms.

   (a) Public notice of competitive bidding procedures. Detailed
   competitive bidding procedures shall be established by public notice
   prior to the commencement of the reverse auction, including without
   limitation:

   (1) Sequencing. The sequencing with which the reverse auction and the
   related forward auction assigning new spectrum licenses will occur.

   (2) Reserve price. Reserve prices, either disclosed or undisclosed, so
   that higher bids for various reverse auction bid options would not win
   in the reverse auction. Reserve prices may apply individually, in
   combination, or in the aggregate.

   (3) Opening bids and bid increments. Maximum or minimum opening bids,
   and by announcement before or during the reverse auction, maximum or
   minimum bid increments in dollar or percentage terms.

   (4) Activity rules. Activity rules that require a minimum amount of
   bidding activity.

   (b) Binding obligation. A bid is an unconditional, irrevocable offer by
   the bidder to fulfill the terms of the bid. The Commission accepts the
   offer by identifying the bid as winning. A bidder has a binding
   obligation to fulfill the terms of a winning bid. A winning bidder will
   relinquish spectrum usage rights pursuant to the terms of any winning
   bid by the deadline set forth in § 73.3700(b)(4) of this chapter.

   (c) Stopping procedures. Before or during the reverse auction,
   procedures may be established regarding when bidding will stop for a
   round, a stage, or an entire auction, in order to terminate the auction
   within a reasonable time and in accordance with public interest
   considerations and the goals, statutory requirements, rules, and
   procedures for the auction, including any reserve price or prices.

   (d) Auction delay, suspension, or cancellation. By public notice or by
   announcement during the reverse auction, the auction may be delayed,
   suspended, or cancelled in the event of a natural disaster, technical
   obstacle, network disruption, evidence of an auction security breach or
   unlawful bidding activity, administrative or weather necessity, or for
   any other reason that affects the fair and efficient conduct of the
   competitive bidding. The Commission 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.