[Congressional Record Volume 145, Number 70 (Friday, May 14, 1999)]
[Extensions of Remarks]
[Pages E977-E978]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                       RURAL CELLULAR LEGISLATION

                                 ______
                                 

                        HON. BENJAMIN A. GILMAN

                              of new york

                    in the house of representatives

                          Friday, May 14, 1999

  Mr. GILMAN. Mr. Speaker, I'm introducing legislation to improve 
cellular telephone service in three rural areas located in 
Pennsylvania, Minnesota, and Florida. Joining me as cosponsors are 
Reps. Carolyn Maloney and Anna Eshoo.
  Most rural areas of this country have two cellular licensees 
competing to provide quality service over their respective service 
territories. Competition between two licensees improves service for 
businesses, governments, and private users, at the same time, improves 
response times for emergency services.
  Unfortunately, three rural service areas in Pennsylvania, Minnesota, 
and Florida do not enjoy the benefit of this competition. The 
Pennsylvania rural service area and the Florida rural service area each 
have two operators, but one of the operators in each area is operating 
under a temporary license and thus lacks the incentive to optimize 
service. The reason for this lack of competition is that in 1992 the 
FCC disqualified three partnerships that had won the licenses, after 
finding that they had not complied with its ``letter-perfect'' 
application rule under the foreign ownership restrictions of the 
Communications Act of 1934. Significantly, the FCC has allowed other 
similarly situated licensees to correct their applications and, 
moreover, Congress repealed the relevant foreign ownership restrictions 
in the Telecommunications Act of 1996.
  In the 105th Congress, former Rep. Joe McDade, joined by Rep. Anna 
Eshoo and former Rep. Scott Klug, introduced H.R. 2901 to address this 
problem. In September 1998, the Telecommunications Subcommittee of the 
Commerce Committee held a hearing on FCC spectrum management that 
included testimony on and discussion of H.R. 2901. Later that month, 
the full Commerce Committee incorporated a modified version of H.R. 
2901 into H.R. 3888, the Anti-Slamming bill. In October 1998, the House 
approved H.R. 3888, incorporating a further modified version of H.R. 
2901, by voice vote on suspension (Congressional Record, Oct. 12, 1998, 
H10606-H10615). Unfortunately, the bill died in the Senate in the last 
few days prior to adjournment for reasons unrelated to the rural 
cellular provision.
  The legislation I am introducing today is based on the rural cellular 
provision contained in H.R. 3888, as approved by the House. The 
legislation would direct the FCC to allow the partnerships denied 
licenses to serve the Pennsylvania, Minnesota, and Florida rural 
services areas to resubmit their applications consistent with FCC rules 
and procedures. The partnerships would pay fees to the FCC consistent 
with previous FCC auctions and

[[Page E978]]

settlements with other similarly situated licensees. To ensure speedy 
service to cellular customers, the FCC would have 90 days from date of 
enactment to award permanent licenses, and if any company failed to 
comply with FCC requirements the FCC would auction the license. The 
licenses would be subject to a five-year transfer restriction, and the 
Minnesota and Florida licenses would be subject to accelerated build-
out requirements.
  I am submitting a copy of this legislation to be included in the 
Record.

                                H.R. --

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. REINSTATEMENT OF APPLICANTS AS TENTATIVE 
                   SELECTEES.

       (a) In General.--Notwithstanding the order of the Federal 
     Communications Commission in the proceeding described in 
     subsection (c), the Commission shall--
       (1) reinstate each applicant as a tentative selectee under 
     the covered rural service area licensing proceeding; and
       (2) permit each applicant to amend its application, to the 
     extent necessary to update factual information and to comply 
     with the rules of the Commission, at any time before the 
     Commission's final licensing action in the covered rural 
     service area licensing proceeding.
       (b) Exemption From Petitions To Deny.--For purposes of the 
     amended applications filed pursuant to subsection (a)(2), the 
     provisions of section 309(d)(1) of the Communications Act of 
     1934 (47 U.S.C. 309(d)(1)) shall not apply.
       (c) Proceeding.--The proceeding described in this 
     subsection is the proceeding of the Commission In re 
     Applications of Cellwave Telephone Services L.P., Futurewave 
     General Partners L.P., and Great Western Cellular Partners, 7 
     FCC Rcd No. 19 (1992).

     SEC. 2. CONTINUATION OF LICENSE PROCEEDING; FEE ASSESSMENT.

       (a) Award of Licenses.--The Commission shall award licenses 
     under the covered rural service area licensing proceeding 
     within 90 days after the date of the enactment of this Act.
       (b) Service Requirements.--The Commission shall provide 
     that, as a condition of an applicant receiving a license 
     pursuant to the covered rural service area licensing 
     proceeding, the applicant shall provide cellular radio-
     telephone service to subscribers in accordance with sections 
     22.946 and 22.947 of the Commission's rules (47 CFR 22.946, 
     22.947); except that the time period applicable under section 
     22.947 of the Commission's rules (or any successor rule) to 
     the applicants identified in subparagraphs (A) and (B) of 
     section 4(1) shall be 3 years rather than 5 years and the 
     waiver authority of the Commission shall apply to such 3-year 
     period.
       Calculation of License Fee.--
       (1) Fee required.--The Commission shall establish a fee for 
     each of the licenses under the covered rural service area 
     licensing proceeding. In determining the amount of the fee, 
     the Commission shall consider--
       (A) the average price paid per person served in the 
     Commission's Cellular Unserved Auction (Auction No. 12); and
       (B) the settlement payments required to be paid by the 
     permittees pursuant to the consent decree set forth in the 
     Commission's order, In re the Tellesis Partners (7 FCC Rcd 
     3168 (1992)), multiplying such payments by two.
       (2) Notice of fee.--Within 30 days after the date an 
     applicant files the amended application permitted by section 
     1(a)(2), the Commission shall notify each applicant of the 
     fee established for the license associated with its 
     application.
       (d) Payment for Licenses.--No later than 18 months after 
     the date that an applicant is granted a license, each 
     applicant shall pay to the Commission the fee established 
     pursuant to subsection (c) of this section for the license 
     granted to the applicant under subsection (a).
       (e) Auction Authority.--If, after the amendment of an 
     application pursuant to section 1(a)(2) of this Act, the 
     Commission finds that the applicant is ineligible for grant 
     of a license to provide cellular radiotelephone services for 
     a rural service area or the applicant does not meet the 
     requirements under subsection (b) of this section, the 
     Commission shall grant the license for which the applicant is 
     the tentative selectee (pursuant to section 1(a)(1)) by 
     competitive bidding pursuant to section 309(j) of the 
     Communications Act of 1934 (47 U.S.C. 309(j)).

     SEC. 3. PROHIBITION OF TRANSFER.

       During the 5-year period that begins on the date that an 
     applicant is granted any license pursuant to section 1, the 
     Commission may not authorize the transfer or assignment of 
     that license under section 310 of the Communications Act of 
     1934 (47 U.S.C. 310). Nothing in this Act may be construed to 
     prohibit any applicant granted a license pursuant to section 
     1 from contracting with other licensees to improve cellular 
     telephone service.

     SEC. 4. DEFINITIONS.

       For the purposes of this Act, the following definitions 
     shall apply:
       (1) Applicant.--The term ``applicant'' means--
       (A) Great Western Cellular Partners, a California general 
     partnership chosen by the Commission as tentative selectee 
     for RSA #492 on May 4, 1989;
       (B) Monroe Telephone Services L.P., a Delaware limited 
     partnership chosen by the Commission as tentative selectee 
     for RSA #370 on August 24, 1989 (formerly Cellware Telephone 
     Services L.P.); and
       (C) FutureWave General Partners L.P., a Delaware limited 
     partnership chosen by the Commission as tentative selectee 
     for RSA #615 on May 25, 1990.
       (2) Commission.--The term ``Commission'' means the Federal 
     Communications Commission.
       (3) Covered rural service area licensing proceeding.--The 
     term ``covered rural service area licensing proceeding'' 
     means the proceeding of the Commission for the grant of 
     cellular radiotelephone licenses for rural service areas #492 
     (Minnesota 11), #370 (Florida 11), and #615 (Pennsylvania 4).
       (4) Tentative selectee.--The term ``tentative selectee'' 
     means a party that has been selected by the Commission under 
     a licensing proceeding for grant of a license, but has not 
     yet been granted the license because the Commission has not 
     yet determined whether the party is qualified under the 
     Commission's rules for grant of the license.

     

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