[Federal Register Volume 59, Number 39 (Monday, February 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4407]


[Federal Register: February 28, 1994]


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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 99

[GEN Docket No. 90-314; FCC 93-550]


Establishment of New Personal Communications Services

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: By this Third Report and Order, the Commission makes final 
decisions on 50 pioneer's preference requests related to broadband 2 
GHz Personal Communications Services (PCS). The Commission awards 
pioneer's preferences to three applicants and denies the remaining 47 
requests. This action guarantees a license to each pioneer in 30 
megahertz of spectrum in a Major Trading Area (MTA) if the applicant is 
otherwise eligible to hold such a license and subject to any changes 
upon reconsideration in GEN Docket No. 90-314 that affect service areas 
or spectrum blocks. The action is intended to appropriately reward the 
three parties that pioneered new PCS services and technologies.

EFFECTIVE DATE: February 28, 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 Third 
Report and Order adopted December 23, 1993, and released February 3, 
1994. 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 Third Report and Order

    1. In the Tentative Decision and Memorandum Opinion and Order 
(Tentative Decision) (57 FR 57458, December 4, 1992) in this 
proceeding, the Commission proposed to award pioneer's preferences to 
American Personal Communications (APC), Cox Enterprises, Inc. (Cox), 
and Omnipoint Communications, Inc. (Omnipoint) and to deny 53 other 
requests. Subsequently, in the First Report and Order (58 FR 42681, 
August 11, 1993) in GEN Docket No. 90-314 and ET Docket No. 92-100, six 
of these 53 requests were found to address 900 MHz narrowband services 
and therefore final action on these six was taken in that proceeding. 
The Commission adopted final rules for broadband 2 GHz PCS in the 
Second Report and Order (58 FR 59174, November 8, 1993) in this 
proceeding. Seven blocks of spectrum were allocated for licensed 2 GHz 
PCS encompassing 120 megahertz at 1850-1890, 1930-1970, 2130-2150, and 
2180-2200 MHz. Regional and local PCS service areas based upon MTAs and 
Basic Trading Areas (BTAs) also were adopted.
    2. The Commission's pioneer's preference rules provide preferential 
treatment in its licensing process to parties that demonstrate their 
responsibility for developing new communications services and 
technologies. To be granted a pioneer's preference, an applicant must 
demonstrate that it has developed the new service or technology; e.g., 
that it has developed the capabilities or possibilities of the 
technology or service or has brought them to a more advanced or 
effective state. The applicant also must demonstrate the technical 
feasibility of the new service or technology, either by submitting a 
technical feasibility showing or at least preliminary results of an 
experiment. Finally, a preference will be granted only if the rules 
adopted are a reasonable outgrowth of the proposal and lend themselves 
to grant of a preference. An applicant meeting this standard will be 
placed on a pioneer's preference track, will not be subject to 
competing applications, and if otherwise qualified will receive a 
license. Other applicants will compete for additional licenses on a 
separate track. The pioneer's preference rules are intended to foster 
development of new services and improve existing services by reducing 
the delays and risks innovators otherwise would face with the 
Commission's licensing process.
    3. In the Tentative Decision, the Commission proposed to grant APC, 
Cox, and Omnipoint a pioneer's preference and to deny 53 requests that 
is tentatively concluded did not merit preferences. After opportunity 
for additional comment and replies focused on the Tentative Decision, 
the Commission found that APC, Cox, and Omnipoint meet the pioneer's 
preference standard and therefore merit award of preferences; and that 
the remaining applicants do not meet this standard and therefore do not 
merit award of preferences.
    4. APC was granted a pioneer's preference for its development and 
demonstration of technologies that facilitate spectrum sharing by PCS 
facilities and microwave systems at 2 GHz. APC's analysis and testing 
demonstrated that there exists unused spectrum in the 1850-1990 MHz 
band sufficient to allow immediate initiation of PCS services without 
first having to relocate existing microwave operations. Its study 
changed the focus of attention from relocating fixed microwave 
operations before initiating PCS to initially implementing PCS while 
sharing the spectrum with the existing microwave operations. This 
study, and the transition plan presented in comments submitted by APC, 
have elements in common with the transition plan adopted in ET Docket 
No. 92-9 to facilitate making 2 GHz spectrum available for emerging 
technologies, including PCS. Further, APC developed Frequency Agile 
Sharing Technology (FAST) and demonstrated that it provides a practical 
means to transition from fixed services to shared fixed and mobile 
services in this spectrum.
    5. As explained by APC, FAST is a frequency planning and management 
tool used to predict (and avoid) interference both between private 
operational fixed service (POFS) and PCS systems, and within a PCS 
system. The FAST system utilizes theoretical interference analyses 
verified by signal strength measurements to determine frequency 
assignments to PCS base stations. This function is accomplished by a 
Channel Utilization Controller (CUC), which monitors and determines the 
channels each PCS base station may use. The CUC monitors coverage and 
interference; analyzes and integrates measured data; integrates 
supporting data bases; and supports data communications links to each 
PCS base station. For each PCS base station the CUC calculates 
theoretical interference values and areas for every POFS station in its 
data base. Both PCS-to-POFS and POFS-to-PCS interference is calculated. 
The CUC then compiles a list of available channels for each base 
station. The theoretical interference analysis is recalculated when PCS 
and/or POFS systems are changed.
    6. APC states that FAST technology can be used with any relatively 
narrow band PCS system channel architecture employing a channel 
bandwidth of 5 megahertz or less. In particular, APC states that the 
FAST system can be used in conjunction with code division multiple 
access (CDMA), time division multiple access, time division duplexed, 
and frequency division duplexed systems that use various transmit-
receive frequency separations. APC asserts that testing of its FAST/
CDMA system verified the ability of its technology to complete PCS 
calls without causing interference to existing microwave operations.
    7. Cox was granted a preference for having developed and 
demonstrated PCS/cable plant interface technology and equipment that 
interfaces existing cable plant with new PCS wireless applications, 
resulting in spectrum-efficient applications for PCS. Cox first 
proposed using cable systems to provide backbone functions for PCS 
(instead of using the existing telephone or fixed microwave networks), 
applied to the Commission for a PCS experimental license, and 
successfully developed and tested equipment. Through experiments, Cox 
demonstrated cost-effective integration of PCS and cable networks that 
makes more efficient use of existing cable plant without impairing 
existing cable services. Cox designed, developed, and tested multi-
backhaul configurations and multi-PCS radio systems with hand-off 
capability, centralized modulation, and distributed antenna 
configurations. These capabilities were realized through its design and 
development work, the key to which is its ``cable microcell 
integrator'' that Cox developed to connect PCS handsets to its embedded 
cable plant.
    8. Using the existing cable plant in PCS network design permits 
economical and rapid deployment of PCS systems and substitution of 
existing infrastructure for increasingly scarce spectrum. The efforts 
of Cox advanced PCS system design by demonstrating the feasibility of 
integrating cable networks with full-featured PCS systems. Its 
developments potentially permit offering efficient PCS service in a 
timely, cost efficient manner with no impairment to existing cable 
services.
    9. Omnipoint was granted a preference for its development of 2 GHz 
equipment that uses advanced techniques that will facilitate continued 
development and implementation of PCS services and technologies. 
Omnipoint was the first to produce practical, working 2 GHz equipment 
for PCS. It engaged in radio frequency engineering and related spread 
spectrum product design, development, miniaturization, and manufacture 
of 2 GHz equipment.
    10. Omnipoint designed and manufactured equipment that uses direct 
sequence spread spectrum access techniques in a 5 or 10 megahertz 
channel. The original work of Omnipoint contributed significantly to 
the development and testing of PCS services and design concepts that 
will facilitate initial implementation of PCS in the 2 GHz band on a 
sharing basis with fixed microwave licensees. Omnipoint has 
demonstrated that its 2 GHz PCS equipment uses innovative technology, 
combining spread spectrum and time division techniques. Further, 
Omnipoint has demonstrated the capability of providing PCS service 
using its equipment. Finally, the use of Omnipoint's handsets by other 
parties to develop PCS experimental systems has fostered the 
development of PCS.
    11. By receiving a pioneer's preference, APC, Cox, and Omnipoint, 
if otherwise qualified, will not be subject to competing license 
applications in Channel Block A, a 30 megahertz MTA in the 1850-1865 
and 1930-1945 MHz bands. APC, Cox, and Omnipoint argued that a 30 
megahertz MTA grant was necessary to permit implementation of the 
systems they proposed.
    12. Cablevision Systems Corporation (Cablevision), Southwestern 
Bell Corporation (SBC), and Fidelity Investments and Cylink Corporation 
(Fidelity/Cylink) disagreed that a 30 megahertz MTA license should be 
awarded pioneers. Cablevision contended that a 20 megahertz BTA block 
would permit the grantees to use the band in which they have conducted 
experiments, while not conveying a windfall 30 megahertz MTA block that 
could have a preclusive effect on other licensees. SBC concurred, 
stating that a 20 megahertz BTA block would be enough spectrum to 
provide adequate PCS service. Fidelity/Cylink argued that a 10 
megahertz BTA block at 2130-2200 MHz would be adequate because such a 
block would enable the provision of full-featured PCS, as well as many 
specialized PCS services.
    13. The Commission found the arguments of APC, Cox, and Omnipoint 
persuasive. Each applicant conducted experiments in the 1850-1990 MHz 
band, not in the 2130-2200 MHz band. An award in the lower band is 
appropriate to ensure that the grantees can implement the services they 
have proposed. While the Commission continues to believe that the upper 
band has the potential to provide a variety of important PCS services, 
APC, Cox, and Omnipoint have designed their systems and conducted their 
experiments in the 1850-1990 MHz band. Further, the Commission is not 
convinced that a 20 megahertz BTA grant would be adequate, given the 
nature of the systems proposed. Accordingly, the Commission awarded 
each pioneer a 30 megahertz MTA block in the service area each 
requested.
    14. The Commission instructed the licensing bureau to condition 
licenses issued as a result of these pioneer's preference grants upon 
construction of PCS systems that substantially use the design and 
technologies upon which the preference awards are based and upon each 
licensee holding its license for a minimum of three years or until the 
construction requirements applicable to the five-year build-out period 
specified in Section 99.206 of the Commission's Rules have been 
satisfied, whichever, is earlier. APC's service area is the MTA that 
includes Washington, DC and Baltimore, Maryland; Cox's service area is 
the MTA that includes San Diego, California; and Omnipoint's service 
area is the MTA that includes northern New Jersey. The Commission noted 
that both PCS channel blocks and service areas are the subject of 
petitions for reconsideration and clarification. Should either PCS 
channel blocks or service areas be amended on reconsideration, the 
pioneer's preferences will be modified accordingly.
    15. Finally, the Commission stated that the 47 pioneer's preference 
requests that were found not to have met the pioneer's preference 
standard were denied for a variety of reasons. Some of these requests 
were incompatible with the rules adopted in the Second Report and Order 
in this proceeding, some did not demonstrate the feasibility of the 
proposed technologies, some did not demonstrate innovation, and some 
did not demonstrate the capabilities or possibilities of specific 
identifiable PCS technologies or services or show how these 
technologies or services had been brought to a more advanced or 
effective state.
    16. Accordingly, it is ordered that the requests for pioneer's 
preference filed by American Personal Communications; Cox Enterprises, 
Inc.; and Omnipoint Communications, Inc. are granted. It is further 
ordered That the relevant licensing bureau shall impose the following 
conditions on the licenses received by American Personal 
Communications; Cox Enterprises, Inc.; and Omnipoint Communications, 
Inc. pursuant to their pioneer's preference awards: (1) Each licensee 
must build a system that substantially uses the design and technologies 
upon which its preference award is based; and (2) Each licensee must 
hold its license for a minimum of three years or until the construction 
requirements applicable to the five-year build-out period specified in 
Section 99.206 of the Commission's Rules have been satisfied, whichever 
is earlier. It is further ordered That the requests for pioneer's 
preference filed by Adelphia Communications Corp.; Advanced MobileComm 
Technologies, Inc. and Digital Spread Spectrum Technologies, Inc.; 
American Portable Telecommunications, Inc.; American Telephone and 
Telegraph; American TeleZone; Ameritech; Associated PCN Corporation; 
Atlantic Cellular Company, L.P.; Bell Atlantic Personal Communications, 
Inc.; Broadband Communications Corporation; Cable USA, Inc.; 
Cablevision Systems Corporation; Cellular Service, Inc.; Comcast PCS 
Communications, Inc.; Corporate Technology Partners; Freeman 
Engineering Associates; Grand Broadcasting Corporation; Iowa Network 
Services, Inc.; Linkatel Communications, Inc.; LiTel Telecommunications 
Corporation; Nextel Communications, Inc.; Omnipoint Corporation, Oracle 
Data Publishing, Inc.; and McCaw Cellular Communications, Inc.; 
Omnipoint Mobile Data Company; Pacific Bell; PacTel Corporation; 
PageMart, Inc.; Panhandle Telephone Cooperative, Inc.; PCN America, 
Inc.; PCN Communications, Inc.; PerTel, Inc.; Personal Communications 
Network Services of New York; Pulson Communications Corporation; 
Qualcomm Incorporated; Satcom, Inc.; Sharecom-Austin, L.P.; SM Tek, 
Inc.; Southwestern Bell Personal Communications, Inc.; Spatial 
Communications; Suite 12 Group; Tele-Communications, Inc.; Tel/Logic 
Inc.; Telmarc Telecommunications; Time Warner Telecommunications, Inc.; 
TRX Transportation Telephone Co.; US West NewVector Group, Inc.; 
Vanguard Cellular Systems, Inc.; and Viacom International, Inc. are 
denied.

List of Subjects in 47 CFR Part 99

    Personal Communications Services, Radio.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 94-4407 Filed 2-25-94; 8:45 am]
BILLING CODE 6712-01-M