[Federal Register Volume 59, Number 155 (Friday, August 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19714]


[[Page Unknown]]

[Federal Register: August 12, 1994]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 24

[PP Docket No. 93-253, FCC 94-198]

 

Implementation of Section 309(j) of the Communications Act--
Competitive Bidding

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rule making.

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SUMMARY: In this Further Notice of Proposed Rule Making, the Commission 
seeks comment by September 12, 1994 on whether businesses owned by 
minorities and/or women should be permitted to hold licenses in the 
broadband personal communications services (``broadband PCS'') that are 
geographically partitioned from established PCS service areas. A 
similar plan, allowing geographic partitioning by rural telephone 
companies, has been adopted to expedite the provision of broadband PCS 
in rural area. The Commission seeks comment from interested parties on 
the following issues: whether allowing businesses owned by minorities 
and/or women to hold partitioned PCS licenses would serve the public 
interest; if so, what parameters the Commission should provide for 
these entities to obtain partitioned licenses (i.e., through what 
mechanisms should partitioned licenses be granted and what, if any, 
limitations should apply); and whether any such partitioning should be 
prohibited for a period of time after initial PCS licensing, and if so, 
for what period. Commenters should focus on the public interest impact 
that allowing such partitioning would likely have. The Commission is 
particularly interested in whether such partitioning could be expected 
to give rise to benefits corresponding to those that are expected from 
rural telephone company partitioning. The Commission also seeks comment 
on whether the potential benefits that may be derived by partitioning 
in this context outweigh any practical or administrative difficulties 
that might arise, and whether more rapid and better service will be 
provided to any areas as a result of the partitioning.
    The Commission also seeks comment on whether it should restrict the 
transfer or assignment of partitioned licenses (held by rural telephone 
companies or by businesses owned by minorities and/or women) for some 
period of time, and if so, for how long any such transfer restriction 
period should last.

DATES: Comments are to be filed on or before September 12, 1994. Reply 
comments are to be filed on or before September 27, 1994.

FOR FURTHER INFORMATION CONTACT:
Jonathan Cohen, Office of Plans and Policy, (202) 418-2030.

SUPPLEMENTARY INFORMATION: This Further Notice of Proposed Rule Making 
is available for inspection and copying during normal business hours in 
the FCC Dockets Branch, Room 230, 1919 M Street N.W., Washington, D.C. 
The complete text may be purchased from the Commission's copy 
contractor, International Transcription Service, Inc., 2100 M Street, 
N.W., Suite 140, Washington, D.C. 20037, telephone (202) 857-3800.

I. Background

    1. In the Memorandum Opinion and Order in GEN Docket No. 90-314, 59 
FR 32830 (June 24, 1994), the Commission set forth rules for licensing 
Personal Communications Services in the 2 GHz band (``broadband PCS''), 
including specification of geographic service areas. We declined to 
allow general partitioning of those service areas, stating that such 
partitioning could be used to circumvent construction requirements, but 
we also recognized that the public interest may favor a different 
result ``for particular groups of service providers, such as rural 
telephone companies, or to create PCS ownership opportunities for 
companies owned by minorities or women.'' Memorandum Opinion and Order 
at 83.
    2. In the Fifth Report and Order in this proceeding, PP Docket No. 
93-253, 59 FR 37566 (July 22, 1994) (``Fifth Report and Order''), the 
Commission determined that, to expedite the provision of broadband PCS 
in rural areas, which have historically suffered from delayed 
introduction of new services and fewer choices in service providers, 
rural telephone companies should be permitted to obtain PCS licenses by 
partitioning certain geographic areas from the licensed PCS service 
area (MTA or BTA). These companies will be permitted to acquire 
partitioned broadband PCS licenses in either of two ways: (1) they may 
form bidding consortia to participate in auctions, and then partition 
the licenses won among themselves, or (2) they may acquire partitioned 
broadband PCS licenses from other licensees through private 
negotiation. We required that partitioned areas conform to established 
geopolitical boundaries (such as county lines) and that each area 
include that portion of the rural telephone company's wireline service 
area that lies within the PCS license area. In addition, where a rural 
telephone company acquires a partitioned license from another PCS 
licensee, the partitioned area must be reasonably related to rural 
telephone company's wireline service area. See Fifth Report and Order 
at 148-153.
    3. Our rationale in allowing partitioning for rural telephone 
companies is that these companies are uniquely positioned to use their 
existing infrastructure to provide broadband PCS in rural areas. Many 
rural telephone companies argued that if they were required to bid on 
entire Basic Trading Area or Major Trading Area licenses to obtain 
licenses covering their wireline service areas, they would be 
effectively barred from entering the broadband PCS industry. They 
contend that under a partitioning plan, they would be able to serve 
areas in which they already provide service, while the remainder of the 
PCS service area could be served by other more efficient providers.

II. Discussion

    4. We wish to consider whether a similar post-auction broadband PCS 
partitioning plan should be adopted for the benefit of businesses owned 
by minorities and/or women. We note that some parties commenting on 
petitions for reconsideration that we received in GEN Docket No. 90-314 
supported various forms of geographic partitioning.\1\ Others, however, 
were opposed to partitioning.\2\ The record has not been sufficiently 
developed on the issue of whether the public interest would be served 
by permitting businesses owned by minorities and/or women to hold 
partitioned licenses to enable the Commission to make a determination 
on this issue. We therefore seek further comment from interested 
parties.\3\ Commenters should address the following issues: (1) whether 
allowing businesses owned by minorities and/or women to hold 
partitioned PCS licenses would serve the public interest; (2) if so, 
what parameters the Commission should provide for these entities to 
obtain partitioned licenses (i.e., through what mechanisms should 
partitioned licenses be granted and what, if any, limitations should 
apply); and (3) whether any such partitioning should be prohibited for 
a period of time after initial PCS licensing, and if so, for what 
period.
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    \1\See e.g., comments of GTE Service Corp., Association of 
Independent Designated Entities, McCaw Cellular Communications, Inc. 
on Petitions for Reconsideration in GEN Docket No. 90-314.
    \2\See e.g., comments of MCI Telecommunications Corporation and 
comments of Nextel Communications, Inc. in GEN Docket No. 90-314.
    \3\Comments submitted on this issue in GEN Docket No. 90-314 
will also be considered in this proceeding.
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    Commenters should focus on the public interest impact that allowing 
such partitioning would likely have. We are particularly interested in 
hearing from interested parties whether such partitioning could be 
expected to give rise to benefits corresponding to those we expect to 
derive from rural telephone company partitioning. We also seek comment 
on whether the potential benefits that may be derived by partitioning 
in this context outweigh any practical or administrative difficulties 
that might arise, and whether more rapid and better service will be 
provided to any areas as a result of the partitioning.
    5. We also wish to explore whether the Commission should restrict 
the transfer or assignment of partitioned licenses (held by rural 
telephone companies or by businesses owned by minorities and/or women) 
for some period of time. We therefore seek comment on this issue, and 
ask commenters to address how long any such transfer restriction period 
should last.

III. Procedural Matters

    6. Initial Regulatory Flexibility Analysis. As required by Section 
603 of the Regulatory Flexibility Act, the Commission has prepared an 
Initial Regulatory Flexibility Analysis (IFRA) of the expected impact 
on small entities of the proposals contained in this Further Notice of 
Proposed Rule Making (FNPRM). We request written public comment on the 
IRFA, which follows. These comments must be filed in accordance with 
the same filing deadlines as comments on the rest of the Notice, but 
they must have a separate and distinct heading designating them as 
responses to the Initial Regulatory Flexibility Analysis. The Secretary 
shall send a copy of this Notice of Proposed Rule Making, including the 
Initial Regulatory Flexibility Analysis, to the Chief Counsel for 
Advocacy of the Small Business Administration in accordance with 
paragraph 603(a) of the Regulatory Flexibility Act. Pub. L. No. 96-354, 
94 Stat. 1164, 5 U.S.C. Sec. 601 et seq. (1981).
    7. Reason for Action: This FNPRM is issued to obtain comment 
regarding the certain aspects of the implementation of Section 309(j) 
of the Communications Act, as amended by the Omnibus Budget 
Reconciliation Act of 1993 (Budget Act).
    8. Objectives: The Commission seeks to implement changes to the 
Communications Act that, inter alia, provide the Commission with the 
authority to award licenses to use the electromagnetic spectrum through 
competitive bidding.
    9. Legal Basis: The FNPRM is authorized under the Omnibus Budget 
Reconciliation Act of 1993, Pub. L. No. 103-66, Title VI, Section 6002, 
and Sections 4(i), 303(r), and 309(j) of the Communications Act of 
1934, as amended, 47 U.S.C Secs. 154(i), 303(r), and 309(j).
    10. Reporting, Recordkeeping and Other Compliance Requirements: The 
proposals under consideration in this FNPRM include the possibility of 
new reporting and recordkeeping requirements for a number of small 
business entities.
    11. Federal Rules Which Overlap, Duplicate or Conflict With These 
Rules: None.
    12. Description, Potential Impact, and Number of Small Entities 
Involved: The rule changes proposed in this FNPRM could affect small 
businesses if they apply for or are granted licenses in the Personal 
Communications Services in the 2 GHz band (broadband PCS). The FNPRM 
proposes that certain entities be permitted to obtain broadband PCS 
licenses for geographic areas that are partitioned from other broadband 
PCS licenses. After evaluating the comments in response to this FNPRM, 
the Commission will further examine the impact of any rule changes on 
small entities and set forth our findings in the Final Regulatory 
Flexibility Analysis.
    13. Any Significant Alternatives Minimizing the Impact on Small 
Entities Consistent with the Stated Objectives: None.
    14. Other Procedural Matters. This is a non-restricted notice and 
comment rule making proceeding. Ex parte presentations are permitted, 
except during the Sunshine Agenda period, provided they are disclosed 
as provided in Commission rules. See generally 47 CFR Secs. 1.1202, 
1.1203, and 1.1206(a).
    15. Pursuant to applicable procedures set forth in Sections 1.415 
and 1.419 of the Commission's Rules, 47 CFR Secs. 1.415 and 1.419, 
interested parties may file comments on or before September 12, 1994, 
and reply comments on or before September 27, 1994. To file formally in 
this proceeding, you must file an original and four copies of all 
comments, reply comments, and supporting comments. If you want each 
Commissioner to receive a personal copy of your comments, you must file 
an original plus nine copies. You should send comments and reply 
comments to Office of the Secretary, Federal Communications Commission, 
Washington, DC 20554. Comments and reply comments will be available for 
public inspection during regular business hours in the Reference Center 
of the Federal Communications Commission, Room 239, 1919 M Street, NW., 
Washington, DC 20554. The complete text of the Notice may be purchased 
from the Commission's copy contractor, International Transcription 
Service, 1919 M Street, Room 236, Washington, DC 20554, telephone (202) 
857-3800.
    16. Issuance of this Notice of Proposed Rule Making is authorized 
under the Omnibus Budget Reconciliation Act of 1993, Pub. L. No. 103-
66, Title VI, Section 6002, and Sections 4(i), 303(r), and 309(j) of 
the Communications Act of 1934, as amended, 47 U.S.C. Secs. 154(i), 
303(r), and 309(j).
    17. For further information concerning this proceeding, contact 
Toni Simmons, Office of Plans and Policy, (202) 418-2030.

List of Subjects in 47 CFR Part 24

    Personal Communications Services, Radio.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 94-19714 Filed 8-11-94; 8:45 am]
BILLING CODE 6712-01-M