§ 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.

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