(i) Random selection
(1) General authority.—
Except as provided in paragraph (5), if there is more than one application for any initial license or construction permit, then the Commission shall have the authority to grant such license or permit to a qualified applicant through the use of a system of random selection.
(2) No license or construction permit shall be granted to an applicant selected pursuant to paragraph (1) unless the Commission determines the qualifications of such applicant pursuant to subsection (a) of this section and section
308 (b) of this title. When substantial and material questions of fact exist concerning such qualifications, the Commission shall conduct a hearing in order to make such determinations. For the purpose of making such determinations, the Commission may, by rule, and notwithstanding any other provision of law
(A) adopt procedures for the submission of all or part of the evidence in written form;
(B) delegate the function of presiding at the taking of written evidence to Commission employees other than administrative law judges; and
(C) omit the determination required by subsection (a) of this section with respect to any application other than the one selected pursuant to paragraph (1).
(3)
(A) The Commission shall establish rules and procedures to ensure that, in the administration of any system of random selection under this subsection used for granting licenses or construction permits for any media of mass communications, significant preferences will be granted to applicants or groups of applicants, the grant to which of the license or permit would increase the diversification of ownership of the media of mass communications. To further diversify the ownership of the media of mass communications, an additional significant preference shall be granted to any applicant controlled by a member or members of a minority group.
(B) The Commission shall have authority to require each qualified applicant seeking a significant preference under subparagraph (A) to submit to the Commission such information as may be necessary to enable the Commission to make a determination regarding whether such applicant shall be granted such preference. Such information shall be submitted in such form, at such times, and in accordance with such procedures, as the Commission may require.
(C) For purposes of this paragraph:
(i) The term media of mass communications includes television, radio, cable television, multipoint distribution service, direct broadcast satellite service, and other services, the licensed facilities of which may be substantially devoted toward providing programming or other information services within the editorial control of the licensee.
(ii) The term minority group includes Blacks, Hispanics, American Indians, Alaska Natives, Asians, and Pacific Islanders.
(4)
(A) The Commission shall, after notice and opportunity for hearing, prescribe rules establishing a system of random selection for use by the Commission under this subsection in any instance in which the Commission, in its discretion, determines that such use is appropriate for the granting of any license or permit in accordance with paragraph (1).
(B) The Commission shall have authority to amend such rules from time to time to the extent necessary to carry out the provisions of this subsection. Any such amendment shall be made after notice and opportunity for hearing.
(C) Not later than 180 days after August 10, 1993, the Commission shall prescribe such transfer disclosures and antitrafficking restrictions and payment schedules as are necessary to prevent the unjust enrichment of recipients of licenses or permits as a result of the methods employed to issue licenses under this subsection.
(5) Termination of authority.—
(A) Except as provided in subparagraph (B), the Commission shall not issue any license or permit using a system of random selection under this subsection after July 1, 1997.
(B) Subparagraph (A) of this paragraph shall not apply with respect to licenses or permits for stations described in section
397 (6) of this title.
(j) Use of competitive bidding
(1) General authority
If, consistent with the obligations described in paragraph (6)(E), mutually exclusive applications are accepted for any initial license or construction permit, then, except as provided in paragraph (2), the Commission shall grant the license or permit to a qualified applicant through a system of competitive bidding that meets the requirements of this subsection.
(2) Exemptions The competitive bidding authority granted by this subsection shall not apply to licenses or construction permits issued by the Commission
(A) for public safety radio services, including private internal radio services used by State and local governments and non-government entities and including emergency road services provided by not-for-profit organizations, that
(i) are used to protect the safety of life, health, or property; and
(ii) are not made commercially available to the public;
(B) for initial licenses or construction permits for digital television service given to existing terrestrial broadcast licensees to replace their analog television service licenses; or
(C) for stations described in section
397 (6) of this title.
(3) Design of systems of competitive bidding For each class of licenses or permits that the Commission grants through the use of a competitive bidding system, the Commission shall, by regulation, establish a competitive bidding methodology. The Commission shall seek to design and test multiple alternative methodologies under appropriate circumstances. The Commission shall, directly or by contract, provide for the design and conduct (for purposes of testing) of competitive bidding using a contingent combinatorial bidding system that permits prospective bidders to bid on combinations or groups of licenses in a single bid and to enter multiple alternative bids within a single bidding round. In identifying classes of licenses and permits to be issued by competitive bidding, in specifying eligibility and other characteristics of such licenses and permits, and in designing the methodologies for use under this subsection, the Commission shall include safeguards to protect the public interest in the use of the spectrum and shall seek to promote the purposes specified in section
151 of this title and the following objectives:
(A) the development and rapid deployment of new technologies, products, and services for the benefit of the public, including those residing in rural areas, without administrative or judicial delays;
(B) promoting economic opportunity and competition and ensuring that new and innovative technologies are readily accessible to the American people by avoiding excessive concentration of licenses and by disseminating licenses among a wide variety of applicants, including small businesses, rural telephone companies, and businesses owned by members of minority groups and women;
(C) recovery for the public of a portion of the value of the public spectrum resource made available for commercial use and avoidance of unjust enrichment through the methods employed to award uses of that resource;
(D) efficient and intensive use of the electromagnetic spectrum;
(E) ensure that, in the scheduling of any competitive bidding under this subsection, an adequate period is allowed
(i) before issuance of bidding rules, to permit notice and comment on proposed auction procedures; and
(ii) after issuance of bidding rules, to ensure that interested parties have a sufficient time to develop business plans, assess market conditions, and evaluate the availability of equipment for the relevant services; and
(F) for any auction of eligible frequencies described in section 113(g)(2) of the National Telecommunications and Information Administration Organization Act (
47 U.S.C.
923 (g)(2)), the recovery of 110 percent of estimated relocation costs as provided to the Commission pursuant to section 113(g)(4) of such Act.
(4) Contents of regulations In prescribing regulations pursuant to paragraph (3), the Commission shall
(A) consider alternative payment schedules and methods of calculation, including lump sums or guaranteed installment payments, with or without royalty payments, or other schedules or methods that promote the objectives described in paragraph (3)(B), and combinations of such schedules and methods;
(B) include performance requirements, such as appropriate deadlines and penalties for performance failures, to ensure prompt delivery of service to rural areas, to prevent stockpiling or warehousing of spectrum by licensees or permittees, and to promote investment in and rapid deployment of new technologies and services;
(C) consistent with the public interest, convenience, and necessity, the purposes of this chapter, and the characteristics of the proposed service, prescribe area designations and bandwidth assignments that promote
(i) an equitable distribution of licenses and services among geographic areas,
(ii) economic opportunity for a wide variety of applicants, including small businesses, rural telephone companies, and businesses owned by members of minority groups and women, and
(iii) investment in and rapid deployment of new technologies and services;
(D) ensure that small businesses, rural telephone companies, and businesses owned by members of minority groups and women are given the opportunity to participate in the provision of spectrum-based services, and, for such purposes, consider the use of tax certificates, bidding preferences, and other procedures;
(E) require such transfer disclosures and antitrafficking restrictions and payment schedules as may be necessary to prevent unjust enrichment as a result of the methods employed to issue licenses and permits; and
(F) prescribe methods by which a reasonable reserve price will be required, or a minimum bid will be established, to obtain any license or permit being assigned pursuant to the competitive bidding, unless the Commission determines that such a reserve price or minimum bid is not in the public interest.
(5) Bidder and licensee qualification No person shall be permitted to participate in a system of competitive bidding pursuant to this subsection unless such bidder submits such information and assurances as the Commission may require to demonstrate that such bidders application is acceptable for filing. No license shall be granted to an applicant selected pursuant to this subsection unless the Commission determines that the applicant is qualified pursuant to subsection (a) of this section and sections
308 (b) and
310 of this title. Consistent with the objectives described in paragraph (3), the Commission shall, by regulation, prescribe expedited procedures consistent with the procedures authorized by subsection (i)(2) of this section for the resolution of any substantial and material issues of fact concerning qualifications.
(6) Rules of construction Nothing in this subsection, or in the use of competitive bidding, shall
(A) alter spectrum allocation criteria and procedures established by the other provisions of this chapter;
(B) limit or otherwise affect the requirements of subsection (h) of this section, section
301,
304,
307,
310, or
606 of this title, or any other provision of this chapter (other than subsections (d)(2) and (e) of this section);
(C) diminish the authority of the Commission under the other provisions of this chapter to regulate or reclaim spectrum licenses;
(D) be construed to convey any rights, including any expectation of renewal of a license, that differ from the rights that apply to other licenses within the same service that were not issued pursuant to this subsection;
(E) be construed to relieve the Commission of the obligation in the public interest to continue to use engineering solutions, negotiation, threshold qualifications, service regulations, and other means in order to avoid mutual exclusivity in application and licensing proceedings;
(F) be construed to prohibit the Commission from issuing nationwide, regional, or local licenses or permits;
(G) be construed to prevent the Commission from awarding licenses to those persons who make significant contributions to the development of a new telecommunications service or technology; or
(H) be construed to relieve any applicant for a license or permit of the obligation to pay charges imposed pursuant to section
158 of this title.
(7) Consideration of revenues in public interest determinations
(A) Consideration prohibited In making a decision pursuant to section
303 (c) of this title to assign a band of frequencies to a use for which licenses or permits will be issued pursuant to this subsection, and in prescribing regulations pursuant to paragraph (4)(C) of this subsection, the Commission may not base a finding of public interest, convenience, and necessity on the expectation of Federal revenues from the use of a system of competitive bidding under this subsection.
(B) Consideration limited
In prescribing regulations pursuant to paragraph (4)(A) of this subsection, the Commission may not base a finding of public interest, convenience, and necessity solely or predominantly on the expectation of Federal revenues from the use of a system of competitive bidding under this subsection.
(C) Consideration of demand for spectrum not affected
Nothing in this paragraph shall be construed to prevent the Commission from continuing to consider consumer demand for spectrum-based services.
(8) Treatment of revenues
(A) General rule Except as provided in subparagraphs (B), (D), and (E), all proceeds from the use of a competitive bidding system under this subsection shall be deposited in the Treasury in accordance with chapter
33 of title
31.
(B) Retention of revenues Notwithstanding subparagraph (A), the salaries and expenses account of the Commission shall retain as an offsetting collection such sums as may be necessary from such proceeds for the costs of developing and implementing the program required by this subsection. Such offsetting collections shall be available for obligation subject to the terms and conditions of the receiving appropriations account, and shall be deposited in such accounts on a quarterly basis. Such offsetting collections are authorized to remain available until expended. No sums may be retained under this subparagraph during any fiscal year beginning after September 30, 1998, if the annual report of the Commission under section
154 (k) of this title for the second preceding fiscal year fails to include in the itemized statement required by paragraph (3) of such section a statement of each expenditure made for purposes of conducting competitive bidding under this subsection during such second preceding fiscal year.
(C) Deposit and use of auction escrow accounts Any deposits the Commission may require for the qualification of any person to bid in a system of competitive bidding pursuant to this subsection shall be deposited in an interest bearing account at a financial institution designated for purposes of this subsection by the Commission (after consultation with the Secretary of the Treasury). Within 45 days following the conclusion of the competitive bidding
(i) the deposits of successful bidders shall be paid to the Treasury, except as otherwise provided in subparagraph (E)(ii);
(ii) the deposits of unsuccessful bidders shall be returned to such bidders; and
(iii) the interest accrued to the account shall be transferred to the Telecommunications Development Fund established pursuant to section
614 of this title.
(D) Disposition of cash proceeds Cash proceeds attributable to the auction of any eligible frequencies described in section 113(g)(2) of the National Telecommunications and Information Administration Organization Act (
47 U.S.C.
923 (g)(2)) shall be deposited in the Spectrum Relocation Fund established under section 118 of such Act [
47 U.S.C.
928], and shall be available in accordance with that section.
(E) Transfer of receipts
(i) Establishment of Fund There is established in the Treasury of the United States a fund to be known as the Digital Television Transition and Public Safety Fund.
(ii) Proceeds for funds Notwithstanding subparagraph (A), the proceeds (including deposits and upfront payments from successful bidders) from the use of a competitive bidding system under this subsection with respect to recovered analog spectrum shall be deposited in the Digital Television Transition and Public Safety Fund.
(iii) Transfer of amount to Treasury On September 30, 2009, the Secretary shall transfer $7,363,000,000 from the Digital Television Transition and Public Safety Fund to the general fund of the Treasury.
(iv) Recovered analog spectrum For purposes of clause (i), the term recovered analog spectrum has the meaning provided in paragraph (15)(C)(vi).
(9) Use of former Government spectrum The Commission shall, not later than 5 years after August 10, 1993, issue licenses and permits pursuant to this subsection for the use of bands of frequencies that
(A) in the aggregate span not less than 10 megahertz; and
(B) have been reassigned from Government use pursuant to part B of the National Telecommunications and Information Administration Organization Act [
47 U.S.C.
921 et seq.].
(10) Authority contingent on availability of additional spectrum
(A) Initial conditions The Commissions authority to issue licenses or permits under this subsection shall not take effect unless
(i) the Secretary of Commerce has submitted to the Commission the report required by section 113(d)(1) of the National Telecommunications and Information Administration Organization Act [
47 U.S.C.
923 (d)(1)];
(ii) such report recommends for immediate reallocation bands of frequencies that, in the aggregate, span not less than 50 megahertz;
(iii) such bands of frequencies meet the criteria required by section 113(a) of such Act [
47 U.S.C.
923 (a)]; and
(iv) the Commission has completed the rulemaking required by section
332 (c)(1)(D) of this title.
(B) Subsequent conditions The Commissions authority to issue licenses or permits under this subsection on and after 2 years after August 10, 1993, shall cease to be effective if
(i) the Secretary of Commerce has failed to submit the report required by section 113(a) of the National Telecommunications and Information Administration Organization Act [
47 U.S.C.
923 (a)];
(ii) the President has failed to withdraw and limit assignments of frequencies as required by paragraphs (1) and (2) of section 114(a) of such Act [
47 U.S.C.
924 (a)];
(iii) the Commission has failed to issue the regulations required by section 115(a) of such Act [
47 U.S.C.
925 (a)];
(iv) the Commission has failed to complete and submit to Congress, not later than 18 months after August 10, 1993, a study of current and future spectrum needs of State and local government public safety agencies through the year 2010, and a specific plan to ensure that adequate frequencies are made available to public safety licensees; or
(v) the Commission has failed under section
332 (c)(3) of this title to grant or deny within the time required by such section any petition that a State has filed within 90 days after August 10, 1993;
until such failure has been corrected.
(11) Termination
The authority of the Commission to grant a license or permit under this subsection shall expire September 30, 2011.
(12) Evaluation Not later than September 30, 1997, the Commission shall conduct a public inquiry and submit to the Congress a report
(A) containing a statement of the revenues obtained, and a projection of the future revenues, from the use of competitive bidding systems under this subsection;
(B) describing the methodologies established by the Commission pursuant to paragraphs (3) and (4);
(C) comparing the relative advantages and disadvantages of such methodologies in terms of attaining the objectives described in such paragraphs;
(D) evaluating whether and to what extent
(i) competitive bidding significantly improved the efficiency and effectiveness of the process for granting radio spectrum licenses;
(ii) competitive bidding facilitated the introduction of new spectrum-based technologies and the entry of new companies into the telecommunications market;
(iii) competitive bidding methodologies have secured prompt delivery of service to rural areas and have adequately addressed the needs of rural spectrum users; and
(iv) small businesses, rural telephone companies, and businesses owned by members of minority groups and women were able to participate successfully in the competitive bidding process; and
(E) recommending any statutory changes that are needed to improve the competitive bidding process.
(13) Recovery of value of public spectrum in connection with pioneer preferences
(A) In general
Notwithstanding paragraph (6)(G), the Commission shall not award licenses pursuant to a preferential treatment accorded by the Commission to persons who make significant contributions to the development of a new telecommunications service or technology, except in accordance with the requirements of this paragraph.
(B) Recovery of value The Commission shall recover for the public a portion of the value of the public spectrum resource made available to such person by requiring such person, as a condition for receipt of the license, to agree to pay a sum determined by
(i) identifying the winning bids for the licenses that the Commission determines are most reasonably comparable in terms of bandwidth, scope of service area, usage restrictions, and other technical characteristics to the license awarded to such person, and excluding licenses that the Commission determines are subject to bidding anomalies due to the award of preferential treatment;
(ii) dividing each such winning bid by the population of its service area (hereinafter referred to as the per capita bid amount);
(iii) computing the average of the per capita bid amounts for the licenses identified under clause (i);
(iv) reducing such average amount by 15 percent; and
(v) multiplying the amount determined under clause (iv) by the population of the service area of the license obtained by such person.
(C) Installments permitted
The Commission shall require such person to pay the sum required by subparagraph (B) in a lump sum or in guaranteed installment payments, with or without royalty payments, over a period of not more than 5 years.
(D) Rulemaking on pioneer preferences Except with respect to pending applications described in clause (iv) of this subparagraph, the Commission shall prescribe regulations specifying the procedures and criteria by which the Commission will evaluate applications for preferential treatment in its licensing processes (by precluding the filing of mutually exclusive applications) for persons who make significant contributions to the development of a new service or to the development of new technologies that substantially enhance an existing service. Such regulations shall
(i) specify the procedures and criteria by which the significance of such contributions will be determined, after an opportunity for review and verification by experts in the radio sciences drawn from among persons who are not employees of the Commission or by any applicant for such preferential treatment;
(ii) include such other procedures as may be necessary to prevent unjust enrichment by ensuring that the value of any such contribution justifies any reduction in the amounts paid for comparable licenses under this subsection;
(iii) be prescribed not later than 6 months after December 8, 1994;
(iv) not apply to applications that have been accepted for filing on or before September 1, 1994; and
(v) cease to be effective on the date of the expiration of the Commissions authority under subparagraph (F).
(E) Implementation with respect to pending applications In applying this paragraph to any broadband licenses in the personal communications service awarded pursuant to the preferential treatment accorded by the Federal Communications Commission in the Third Report and Order in General Docket 90314 (FCC 93550, released February 3, 1994)
(i) the Commission shall not reconsider the award of preferences in such Third Report and Order, and the Commission shall not delay the grant of licenses based on such awards more than 15 days following December 8, 1994, and the award of such preferences and licenses shall not be subject to administrative or judicial review;
(ii) the Commission shall not alter the bandwidth or service areas designated for such licenses in such Third Report and Order;
(iii) except as provided in clause (v), the Commission shall use, as the most reasonably comparable licenses for purposes of subparagraph (B)(i), the broadband licenses in the personal communications service for blocks A and B for the 20 largest markets (ranked by population) in which no applicant has obtained preferential treatment;
(iv) for purposes of subparagraph (C), the Commission shall permit guaranteed installment payments over a period of 5 years, subject to
(I) the payment only of interest on unpaid balances during the first 2 years, commencing not later than 30 days after the award of the license (including any preferential treatment used in making such award) is final and no longer subject to administrative or judicial review, except that no such payment shall be required prior to the date of completion of the auction of the comparable licenses described in clause (iii); and
(II) payment of the unpaid balance and interest thereon after the end of such 2 years in accordance with the regulations prescribed by the Commission; and
(v) the Commission shall recover with respect to broadband licenses in the personal communications service an amount under this paragraph that is equal to not less than $400,000,000, and if such amount is less than $400,000,000, the Commission shall recover an amount equal to $400,000,000 by allocating such amount among the holders of such licenses based on the population of the license areas held by each licensee.
The Commission shall not include in any amounts required to be collected under clause (v) the interest on unpaid balances required to be collected under clause (iv).
(F) Expiration
The authority of the Commission to provide preferential treatment in licensing procedures (by precluding the filing of mutually exclusive applications) to persons who make significant contributions to the development of a new service or to the development of new technologies that substantially enhance an existing service shall expire on August 5, 1997.
(G) Effective date
This paragraph shall be effective on December 8, 1994, and apply to any licenses issued on or after August 1, 1994, by the Federal Communications Commission pursuant to any licensing procedure that provides preferential treatment (by precluding the filing of mutually exclusive applications) to persons who make significant contributions to the development of a new service or to the development of new technologies that substantially enhance an existing service.
(14) Auction of recaptured broadcast television spectrum
(A) Limitations on terms of terrestrial television broadcast licenses
A full-power television broadcast license that authorizes analog television service may not be renewed to authorize such service for a period that extends beyond February 17, 2009.
(B) Spectrum reversion and resale
(i) The Commission shall
(I) ensure that, as licenses for analog television service expire pursuant to subparagraph (A), each licensee shall cease using electromagnetic spectrum assigned to such service according to the Commissions direction; and
(II) reclaim and organize the electromagnetic spectrum in a manner consistent with the objectives described in paragraph (3) of this subsection.
(ii) Licensees for new services occupying spectrum reclaimed pursuant to clause (i) shall be assigned in accordance with this subsection.
(C) Certain limitations on qualified bidders prohibited In prescribing any regulations relating to the qualification of bidders for spectrum reclaimed pursuant to subparagraph (B)(i), the Commission, for any license that may be used for any digital television service where the grade A contour of the station is projected to encompass the entirety of a city with a population in excess of 400,000 (as determined using the 1990 decennial census), shall not
(i) preclude any party from being a qualified bidder for such spectrum on the basis of
(I) the Commissions duopoly rule (47 C.F.R. 73.3555(b)); or
(II) the Commissions newspaper cross-ownership rule (47 C.F.R. 73.3555(d)); or
(ii) apply either such rule to preclude such a party that is a winning bidder in a competitive bidding for such spectrum from using such spectrum for digital television service.
(15) Commission to determine timing of auctions
(A) Commission authority
Subject to the provisions of this subsection (including paragraph (11)), but notwithstanding any other provision of law, the Commission shall determine the timing of and deadlines for the conduct of competitive bidding under this subsection, including the timing of and deadlines for qualifying for bidding; conducting auctions; collecting, depositing, and reporting revenues; and completing licensing processes and assigning licenses.
(B) Termination of portions of auctions 31 and 44
Except as provided in subparagraph (C), the Commission shall not commence or conduct auctions 31 and 44 on June 19, 2002, as specified in the public notices of March 19, 2002, and March 20, 2002 (DA 02659 and DA 02563).
(C) Exception
(i) Blocks excepted Subparagraph (B) shall not apply to the auction of
(I) the C-block of licenses on the bands of frequencies located at 710716 megahertz, and 740746 megahertz; or
(II) the D-block of licenses on the bands of frequencies located at 716722 megahertz.
(ii) Eligible bidders The entities that shall be eligible to bid in the auction of the C-block and D-block licenses described in clause (i) shall be those entities that were qualified entities, and that submitted applications to participate in auction 44, by May 8, 2002, as part of the original auction 44 short form filing deadline.
(iii) Auction deadlines for excepted blocks Notwithstanding subparagraph (B), the auction of the C-block and D-block licenses described in clause (i) shall be commenced no earlier than August 19, 2002, and no later than September 19, 2002, and the proceeds of such auction shall be deposited in accordance with paragraph (8) not later than December 31, 2002.
(iv) Report Within one year after June 19, 2002, the Commission shall submit a report to Congress
(I) specifying when the Commission intends to reschedule auctions 31 and 44 (other than the blocks excepted by clause (i)); and
(II) describing the progress made by the Commission in the digital television transition and in the assignment and allocation of additional spectrum for advanced mobile communications services that warrants the scheduling of such auctions.
(v) Additional deadlines for recovered analog spectrum Notwithstanding subparagraph (B), the Commission shall conduct the auction of the licenses for recovered analog spectrum by commencing the bidding not later than January 28, 2008, and shall deposit the proceeds of such auction in accordance with paragraph (8)(E)(ii) not later than June 30, 2008.
(vi) Recovered analog spectrum For purposes of clause (v), the term recovered analog spectrum means the spectrum between channels 52 and 69, inclusive (between frequencies 698 and 806 megahertz, inclusive) reclaimed from analog television service broadcasting under paragraph (14), other than
(I) the spectrum required by section
337 of this title to be made available for public safety services; and
(II) the spectrum auctioned prior to February 8, 2006.
(D) Return of payments
Within one month after June 19, 2002, the Commission shall return to the bidders for licenses in the A-block, B-block, and E-block of auction 44 the full amount of all upfront payments made by such bidders for such licenses.
(16) Special auction provisions for eligible frequencies
(A) Special regulations The Commission shall revise the regulations prescribed under paragraph (4)(F) of this subsection to prescribe methods by which the total cash proceeds from any auction of eligible frequencies described in section 113(g)(2) of the National Telecommunications and Information Administration Organization Act (
47 U.S.C.
923 (g)(2)) shall at least equal 110 percent of the total estimated relocation costs provided to the Commission pursuant to section 113(g)(4) of such Act.
(B) Conclusion of auctions contingent on minimum proceeds The Commission shall not conclude any auction of eligible frequencies described in section 113(g)(2) of such Act [
47 U.S.C.
923 (g)(2)] if the total cash proceeds attributable to such spectrum are less than 110 percent of the total estimated relocation costs provided to the Commission pursuant to section 113(g)(4) of such Act. If the Commission is unable to conclude an auction for the foregoing reason, the Commission shall cancel the auction, return within 45 days after the auction cancellation date any deposits from participating bidders held in escrow, and absolve such bidders from any obligation to the United States to bid in any subsequent reauction of such spectrum.
(C) Authority to issue prior to deauthorization
In any auction conducted under the regulations required by subparagraph (A), the Commission may grant a license assigned for the use of eligible frequencies prior to the termination of an eligible Federal entitys authorization. However, the Commission shall condition such license by requiring that the licensee cannot cause harmful interference to such Federal entity until such entitys authorization has been terminated by the National Telecommunications and Information Administration.
(k) Broadcast station renewal procedures
(1) Standards for renewal If the licensee of a broadcast station submits an application to the Commission for renewal of such license, the Commission shall grant the application if it finds, with respect to that station, during the preceding term of its license
(A) the station has served the public interest, convenience, and necessity;
(B) there have been no serious violations by the licensee of this chapter or the rules and regulations of the Commission; and
(C) there have been no other violations by the licensee of this chapter or the rules and regulations of the Commission which, taken together, would constitute a pattern of abuse.
(2) Consequence of failure to meet standard
If any licensee of a broadcast station fails to meet the requirements of this subsection, the Commission may deny the application for renewal in accordance with paragraph (3), or grant such application on terms and conditions as are appropriate, including renewal for a term less than the maximum otherwise permitted.
(3) Standards for denial If the Commission determines, after notice and opportunity for a hearing as provided in subsection (e) of this section, that a licensee has failed to meet the requirements specified in paragraph (1) and that no mitigating factors justify the imposition of lesser sanctions, the Commission shall
(A) issue an order denying the renewal application filed by such licensee under section
308 of this title; and
(B) only thereafter accept and consider such applications for a construction permit as may be filed under section
308 of this title specifying the channel or broadcasting facilities of the former licensee.
(4) Competitor consideration prohibited
In making the determinations specified in paragraph (1) or (2), the Commission shall not consider whether the public interest, convenience, and necessity might be served by the grant of a license to a person other than the renewal applicant.
