[Federal Register Volume 59, Number 35 (Tuesday, February 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3820]


[[Page Unknown]]

[Federal Register: February 22, 1994]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[ET Docket No. 93-266; FCC 93-551]

 

Review of the Pioneer's Preference Rules

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In October 1993, the Commission initiated a review of its 
pioneer's preference rules to assess the effect of competitive bidding 
authority recently enacted by Congress. In this First Report and Order 
the Commission concludes that any changes to its pioneer's preference 
rules will not be applied to the three proceedings in which Tentative 
Decisions have been issued. The action is intended to ensure the 
equitable treatment of pioneer's preference applicants in these 
proceedings.

EFFECTIVE DATE: February 22, 1994.

FOR FURTHER INFORMATION CONTACT:
Rodney Small, Office of Engineering and Technology, (202) 653-8116.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's First 
Report and Order adopted December 23, 1993, and released January 28, 
1994. A summary of the Notice of Proposed Rule Making (Notice) 
initiating this proceeding may be found at 58 FR 57578 (October 26, 
1993). This action will not change the public reporting burden. The 
full text of this Commission decision is available for inspection and 
copying during regular business hours in the FCC Reference Center (Room 
239), 1919 M Street, NW., Washington, DC 20554. The complete text of 
the decision also may be purchased from the Commission's duplication 
contractor, International Transcription Service, (202) 857-3800, 2100 M 
Street, NW., Washington, DC 20037.

Summary of First Report and Order

    1. In the Notice the Commission initiated a review of the effect on 
its pioneer's preference rules of new authority to assign licenses by 
competitive bidding. Comment was solicited, inter alia, on whether 
repeal or amendment of the pioneer's preference rules should apply to 
the three proceedings in which Tentative Decisions, but not final 
Orders, have been issued that address preference requests.
    2. In response to the Notice, American Personal Communications 
(APC) requested that the Commission address early and separately 
whether to apply to the 2 GHz broadband Personal Communications 
Services (PCS) proceeding, GEN Docket No. 90-314, any changes or repeal 
of the pioneer's preference rules. Most parties concurred with APC that 
it would be unfair to apply any modifications to the pioneer's 
preference rules to the 2 GHz broadband PCS proceeding and to two 
additional proceedings in which Tentative Decisions have been made. 
With regard to amending or repealing the rules with respect to the 2 
GHz PCS preference applicants in particular, several parties expressed 
agreement with APC that it would be arbitrary for the Commission to 
treat the 2 GHz PCS preference applicants different from the 900 MHz 
PCS applicants solely because the Commission bifurcated its PCS 
proceeding and reached conclusions on narrowband issues first. See GEN 
Docket No. 90-314/ET Docket No. 92-100.
    3. The Commission has issued Tentative Decisions in two proceedings 
in addition to 2 GHz PCS. With respect to the 28 GHz Local Multipoint 
Distribution Services (LMDS) proceeding, CC Docket No. 92-297, the 
Commission tentatively awarded a pioneer's preference to Suite 12 
Group. Suite 12 argued that if the Commission decides to eliminate or 
alter significantly the pioneer's preference rules, equity demands that 
the tentative grants, including that for LMDS, be judged in accordance 
with the existing rules. With respect to the 1.6/2.4 GHz Mobile 
Satellite Service (MSS) proceeding, ET Docket No. 92-28, the Commission 
tentatively decided that no pioneer's preference award was merited. 
Motorola Satellite Communications, Inc. argued that there is no reason 
to change the preference rules as they apply to this proceeding and 
that authorization of competitive bidding does not undermine the basis 
of the Commission's decision to consider pioneer's preference requests 
in this proceeding because the MSS applications are not mutually 
exclusive.
    4. Nextel Communications, Inc., Paging Network, Inc., and PageMart, 
Inc. (PageMart) maintained that under the notice and comment rule 
making procedures involved, the Commission may revise, modify, and even 
reverse its tentative conclusions based on the record developed in 
response to its solicitation for comments. BellSouth, PageMart, and 
Southwestern Bell Corporation also argued that it would be more 
equitable to charge pioneers in proceedings in which Tentative 
Decisions have been made if other licensees in the same service 
generally will be selected using competitive bidding.
    5. The Commission concluded that it would be inequitable to apply 
any changes in the pioneer's preference rules to pending proceedings in 
which Tentative Decisions have been issued. The Commission found that 
notwithstanding that other licensees in the three proceedings at issue 
may have to bid at auction and pay for their licenses, preference 
applicants in these proceedings submitted their requests and publicly 
disclosed substantial detail of their system designs in reliance on the 
continued applicability of the pioneer's preference rules. The 
Commission stated that had the rules been different, these applicants 
might have structured their requests differently; or conducted 
research, development, and experimentation differently; or elected not 
to disclose detailed information about their systems. The Commission 
concluded that notwithstanding its legal authority to treat 2 GHz 
broadband PCS pending applicants differently than the 900 MHz 
narrowband PCS applicants and also to apply changed rules to pending 
applicants in the 28 GHz LMDS and 1.6/2.4 GHz MSS proceedings, to do so 
would be inequitable. Accordingly, the Commission decided to render 
final decisions on pioneer's preference requests in these proceedings 
based on the existing pioneer's preference rules.
    6. This action concluded the Commission's review of the pioneer's 
preference rules with respect to proceedings in which Tentative 
Decisions have been made. The Commission anticipates concluding its 
review of the pioneer's preference rules with respect to other 
proceedings in a separate Report and Order.
Ordering Clause
    7. Accordingly, It is ordered that this First Report and Order IS 
ADOPTED. IT IS FURTHER ORDERED that the Request for Separate and 
Expedited Treatment of ``Existing Pioneer Preference'' Issues, filed by 
American Personal Communications, IS GRANTED to the extent indicated 
herein. This action is taken pursuant to sections 4(i), 7(a), 303(c), 
303(f), 303(g), 303(r), and 309(j) of the Communications Act of 1934, 
as amended, 47 U.S.C. sections 154(i), 157(a), 303(c), 303(f), 303(g), 
303(r), and 309(j).

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure, Pioneer's preference.


Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 94-3820 Filed 2-18-94; 8:45 am]
BILLING CODE 6712-01-M