[Federal Register Volume 60, Number 160 (Friday, August 18, 1995)]
[Proposed Rules]
[Pages 43105-43106]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20504]



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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 95

[WT Docket No. 95-131; FCC 95-318]


Allow Interactive Video and Data Service (IUDS) Licensees to 
Eliminate the One-year Construction ``Build-out'' Requirement

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: The Commission has proposed rules to allow Interactive Video 
and Data Service (IUDS) licensees to eliminate the one-year 
construction ``build-out'' requirement. This action was initiated on 
our own motion in response to requests by several IUDS licensees that 
participated in the IUDS auction. Originally crafted in the context of 
awarding licenses by lottery, the one-year construction benchmark now 
appears unnecessary. Licensees have sufficient economic incentives to 
provide service as quickly as possible; eliminating this one-year 
benchmark will provide licensees with greater flexibility in making 
financial, equipment, and other construction-related decisions.

DATES: Comments must be submitted on or before September 20, 1995 and 
reply comments must be filed on or before October 5, 1995.

ADDRESSES: Federal Communication Commission, 1919 M Street, NW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT:
Donna Kinin at (202) 418-0680, Wireless Telecommunications Bureau.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rule Making, WT Docket 95-131, FCC 95-318, adopted July 31, 
1995, and released August 14, 1995. The full text of this Notice of 
Proposed Rule Making is available for inspection and copying during 
normal business hours in the FCC Reference Center, Room 230, 1919 M 
Street, NW., Washington, DC. The complete text may be purchased from 
the Commission's copy contractor, International Transcription Service, 
Inc., 2100 M Street, NW., Suite 140, Washington, DC 20037, telephone 
(202) 857-3800.

Summary of Notice of Proposed Rule Making

    1. In response to requests by several IUDS licensees that were 
awarded licenses as a result of the IUDS auction, the Commission 
initiated a rule making to amend part 95 of its Rules, 47 CFR part 95, 
to eliminate the one-year construction ``build-out'' requirement. The 
IUDS service rules, crafted in 1992 in the context of awarding licenses 
by lottery, were intended to reduce speculation and spectrum 
warehousing. The Commission believes that the one-year construction 
benchmark is no longer necessary when licenses are awarded by auction.
    2. The Commission proposes to amend Sec. 95.833(a) of its rules to 
permit IUDS licensees to eliminate the one-year construction 
requirement, but not alter the three- and five-year benchmarks. 
Licensees argue that the IUDS equipment market is in early development 
and the one-year rule will hinder the industry's technological 
development. The Commission believes that with auction-awarded 
licenses, licensees have sufficient economic incentive to provide 
service as quickly as possible. In addition, it is in the public 
interest to provide licensees with greater flexibility in making 
financial, equipment and other construction-related decisions. Finally, 
leaving the three- and five-year benchmarks in tact, ensures timely 
service to the public.
    3. The Commission seeks specific comments concerning the proposed 
rule amendment.

Initial Regulatory Flexibility Analysis

Reason for Action

    The Commission proposes to amend part 95 of its rules to eliminate 
the one-year ``build-out'' construction requirement in the Interactive 
Video and Data Service (IUDS). Section 95.833(a) was crafted in the 
context of lotteries, but with auctions, speculation and spectrum 
warehousing are not issues.

Objectives

    This change will provide greater opportunity for IUDS technological 
development and give licensees greater flexibility in their equipment/
business decisions.

Legal Basis

    The proposed action is authorized under sections 4(i), 303(r) and 
309(j) of the Communications Act, 47 U.S.C. 154(i), 303(r) and 309(j).

Report, Recordkeeping and Other Compliance Requirements

    None.

Federal Rules Which Overlap, Duplicate or Conflict With These Rules

    None.

Description, Potential Impact, and Small Entities Involved

    The proposed rule change would benefit IUDS licensees by allowing 
more flexibility in their construction decisions, while offering 
service in the intended time frame. Most IUDS licensees are expected to 
be small entities.

Any Significant Alternatives Minimizing the Impact on Small Entities 
Consistent With the Stated Objectives

    None.

[[Page 43106]]


List of Subjects in 47 CFR Part 95

    Interactive Video and Data Service (IUDS), Radio.

Federal Communications Commission.
LaVera F. Marshall,
Acting Secretary.
[FR Doc. 95-20504 Filed 8-17-95; 8:45 am]
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