47 C.F.R. § 1.2109

License grant, denial, default, and disqualification

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(a) Unless otherwise specified by public notice, auction winners are required to pay the balance of their winning bids in a lump sum within ten (10) business days following the release of a public notice establishing the payment deadline. If a winning bidder fails to pay the balance of its winning bids in a lump sum by the applicable deadline as specified by the Commission, it will be allowed to make payment within ten (10) business days after the payment deadline, provided that it also pays a late fee equal to five percent of the amount due. When a winning bidder fails to pay the balance of its winning bid by the late payment deadline, it is considered to be in default on its license(s) and subject to the applicable default payments. Licenses will be awarded upon the full and timely payment of winning bids and any applicable late fees.

(b) If a winning bidder withdraws its bid after the Commission has declared competitive bidding closed or fails to remit the required down payment within ten (10) business days after the Commission has declared competitive bidding closed, the bidder will be deemed to have defaulted, its application will be dismissed, and it will be liable for the default payment specified in §§ 1.2104(g)(2) or 1.2104(g)(3), whichever is applicable. In such event, the Commission, at its discretion, may either re-auction the license(s) to existing or new applicants or offer it to the other highest bidders (in descending order) at their final bids. If the license(s) is offered to the other highest bidders (in descending order), the down payment obligations set forth in § 1.2107(b) will apply. However, in combinatorial bidding auctions, the Commission will only re-auction the license(s) to existing or new applicants. The Commission will not offer the package or licenses to the next highest bidder.

(c) A winning bidder who is found unqualified to be a licensee, fails to remit the balance of its winning bid in a timely manner, or defaults or is disqualified for any reason after having made the required down payment, will be deemed to have defaulted, its application will be dismissed, and it will be liable for the payment set forth in §§ 1.2104(g)(2) or 1.2104(g)(3), whichever is applicable. In such event, the Commission may either re-auction the license(s) to existing or new applicants or offer it to the other highest bidders (in descending order) at their final bids. However, in combinatorial bidding auctions, the Commission will only re-auction the license(s) to existing or new applicants. The Commission will not offer the package or licenses to the next highest bidder.

(d) Bidders who are found to have violated the antitrust laws or the Commission's rules in connection with their participation in the competitive bidding process may be subject, in addition to any other applicable sanctions, to forfeiture of their upfront payment, down payment or full bid amount, and may be prohibited from participating in future auctions.

[59 FR 44293, Aug. 26, 1994, as amended at 62 FR 13544, Mar. 21, 1997; 63 FR 2343, Jan. 15, 1998; 68 FR 42996, July 21, 2003]
Notes of Decisions
Cited in 6 cases (1 in the last 5 years), 1999–2021 · leading case: In Re: Nextwave Pers. Commc'ns, Inc. Debtor. Fed. Commc'ns Comm'n v. Nextwave Pers. Commc'ns, Inc., 200 F.3d 43 (2d Cir. 1999).
In Re: Nextwave Pers. Commc'ns, Inc. Debtor. Fed. Commc'ns Comm'n v. Nextwave Pers. Commc'ns, Inc., 200 F.3d 43 (2d Cir. 1999). “8 See 47 C.F.R. § 1.2109 (a); Second Order ¶ 194.”
SNR Wireless LicenseCo, LLC v. Fed. Commc'ns Comm'n, 868 F.3d 1021 (D.C. Cir. 2017). “While the exact amount of the petitioners’ penalties depends on the winning price for the relevant licenses at re-auction, 47 C.F.R. § 1.2109 ; see also id. § 1.2104(g)(2), the parties anticipate that the penalties will amount to hundreds of millions of dollars.”
NextWave Pers. Commc'ns, Inc. v. Fed. Commc'ns Comm'n (In Re NextWave Pers. Commc'ns, Inc.), 235 B.R. 277 (Bankr. S.D.N.Y. 1999). “7 One might argue that some ambiguity exists regarding the applicability of these penalties because the provisions refer only to withdrawal, default or disqualification, while other sections of the regulations refer to “License grant, denial, default and disqualification,” 47…”
In Re NextWave Pers. Commc'ns, Inc., 235 B.R. 314 (Bankr. S.D.N.Y. 1999). “708 (a); see also 47 C.F.R. § 1.2109 (a) (1996) (same). In circumstances where the regulations permit certain designated entities such as NPCI to pay the full amount of their high bids in installments over the term of their licenses, 47 C.”
NextWave Pers. Commc'ns, Inc. v. Fed. Commc'ns Comm'n (In Re NextWave Pers. Commc'ns, Inc.), 235 B.R. 272 (Bankr. S.D.N.Y. 1999). · cites it 2× “*276 47 C.F.R. § 1.2109 (a) (emphasis supplied).”
Vermont Nat'l Tel. Co. v. Northstar Wireless, LLC (D.D.C. 2021). “” 47 C.F.R. § 1.2109 (d). And here, the FCC proceeding involved a review of the short- form and long-form applications submitted by Northstar Wireless and SNR Wireless, including allegations that within these forms Northstar Wireless and SNR Wireless materially misrepresented…”
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