[Federal Register Volume 60, Number 211 (Wednesday, November 1, 1995)]
[Rules and Regulations]
[Pages 55484-55485]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26748]



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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 90

[PR Docket No. 89-553, GN Docket No. 93-252; FCC 95-429]


SMR Systems in the 900 MHz Frequency Band

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Commission, on its own motion, adopted a Third Order on 
Reconsideration, reconsidering the coverage requirement for the 900 MHz 
Specialized Mobile Radio (SMR) service. In addition, the Third Order on 
Reconsideration also amended the Part 90 rules to include a renewal 
expectancy for 900 MHz Major Trading Area (MTA) licensees. The intended 
effect of this action is to clarify the service rules for the 900 MHz 
SMR service.

EFFECTIVE DATE: December 1, 1995.

FOR FURTHER INFORMATION CONTACT:
Diane Law, (202) 418-0660, Wireless Telecommunications Bureau.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Third Order on 
Reconsideration, released October 20, 1995. The complete text of this 
Third Order on Reconsideration is available for inspection and copying 
during normal business hours in the FCC Dockets Branch, Room 239, 1919 
M Street, NW., Washington, DC, and also may be purchased from the 
Commission's copy contractor, International Transcription Service, at 
(202) 857-3800, 2100 M Street, NW., Suite 140, Washington, DC 20037.

Synopis of the Third Order on Reconsideration

Adopted: October 20, 1995
Released: October 20, 1995

I. Background

    The Commission adopted the service and auction rules for the 900 
MHz SMR auction in the Second Order on Reconsideration & Seventh Report 
& Order, 60 FR 48913 (Sept. 21, 1995). In that Order, The Commission 
stated that it would auction 1,020 MTA licenses for the 900 MHz SMR 
service in a simultaneous multi-round auction. The Commission also 
adopted coverage requirements for MTA licensees. 900 MHz MTA licensees 
must provide coverage to one-third of the population of their service 
area within three years of initial license grant and to two-thirds of 
the population of their service area within five years, or, at the five 
year mark, submit a showing of substantial service.

II. Third Order on Reconsideration

A. Coverage Requirement

    Substantial Service. The Commission clarifies that the 
``substantial service'' showing is a mechanism designed for specialized 
users who may not be able to meet the two-thirds coverage requirement 
due to individualized circumstances. Two possible examples of 
individualized circumstances which could warrant a showing of 
``substantial service'' are licensees who provide a ``niche service'' 
to businesses or who focus on serving populations outside of areas 
currently served by incumbent licensees. The coverage requirement is 
not intended to act a deterrent to seeking MTA licenses, and the 
Commission believes that with the ``substantial service'' mechanism it 
has provided sufficient flexibility for new entrants to provide new 
services or to serve now unserved populations in all of the licenses.
    Resale. The Commission also clarifies that 900 MHz MTA licensees 
may engage in resale agreements for use of others' facilities to 
enhance the quality of service to the population of their service 
areas, but these resale agreements may not act as a substitute for 
meeting the coverage requirements by building facilities. 900 MHz MTA 
licensees may resell their service. However the licensee must remain in 
control of its spectrum and remains responsible for insuring that the 
coverage requirements are met. The Commission declines to require that 
a specific number of channels be deployed to implement the coverage 
rule, however, it reserves judgment on whether such a requirement may 
be necessary in other services.

B. Renewal Expectancy.

    In the Commercial Mobile Radio Service (CMRS) Third Report and 
Order, 59 FR 59945 (Nov. 21 1994), the Commission stated that the 
applicable sections of Part 22 governing renewal expectancies would be 
incorporated into Part 90 of the Commission's rules for CMRS providers. 
In this Third Order on Reconsideration, the Commission amends the Part 
90 rules to include a renewal expectancy for 900 MHz MTA licensees. 
Following the end of their ten year license term, 900 MHz MTA licensees 
will be afforded a renewal expectancy provided they are able to 
demonstrate that they: (1) Provided ``substantial'' service during the 
license term; and (2) complied with applicable Commission rules and 
policies, and the Communications Act.

IV. Procedural Matters and Ordering Clauses

    Ordering Clauses. Accordingly, it is ordered that, pursuant to the 
authority of Sections 4(i), 303(r), and 309(j) of the Communications 
Act of 1934, as amended, 47 U.S.C. 154(i), 303(r), and 309(j), this 
Third Order on Reconsideration is adopted and Part 90 of the 
Commission's Rules is amended as set forth below.
    It is further ordered that the rule amendments set forth below will 
become effective December 1, 1995.

List of Subjects in 47 CFR Part 90

    Radio.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Amendatory Text

    Part 90 of Chapter I of Title 47 of the Code of Federal Regulations 
is amended as follows:

PART 90--PRIVATE LAND MOBILE RADIO SERVICES

    1. The authority citation for Part 90 is revised to read as 
follows:

    Authority: 47 U.S.C. 154, 303, 309 and 332.

    2. A new Section 90.816 is added to read as follows:

[[Page 55485]]



Sec. 90.816  Criteria for comparative 900 MHz SMR renewal proceedings.

    (a) Ultimate issue. The ultimate issue in comparative renewal 
proceedings will be to determine, in light of the evidence adduced in 
the proceeding, what disposition of the applications would best serve 
the public interest, convenience and necessity.
    (b) Renewal expectancies. The most important comparative factor to 
be considered in a comparative 900 MHz SMR renewal proceeding is a 
major preference, commonly referred to as a ``renewal expectancy''.
    (1) The 900 MHz SMR renewal applicant involved in a comparative 
renewal proceeding will receive a renewal expectancy, if its past 
record for the relevant license period demonstrates that:
    (i) The renewal applicant has provided ``substantial'' service 
during its past license term. ``Substantial'' service is defined as 
service which is sound, favorable, and substantially above a level of 
mediocre service which just might minimally warrant renewal; and
    (ii) The renewal applicant has substantially complied with 
applicable FCC rules, policies and the Communications Act of 1934, as 
amended.
    (2) In order to establish its right to a renewal expectancy, a 900 
MHz renewal applicant involved in a comparative renewal proceeding must 
submit a showing explaining why it should receive a renewal expectancy. 
At a minimum, this showing must include:
    (i) A description of its current service in terms of geographic 
coverage and population served;
    (ii) An explanation of its record of expansion, including a 
timetable of the construction of new base sites to meet changes in 
demand for SMR service;
    (iii) A description of its investments in its 900 MHz SMR system; 
and
    (iv) Copies of all FCC orders finding the licensee to have violated 
the Communications Act or any FCC rule or policy; and a list of any 
pending proceedings that relate to any matter described in paragraph 
(b)(2) of this section.
    (3) In making its showing of entitlement to a renewal expectancy, a 
renewal applicant may claim credit for any system modification 
applications that were pending on the date it filed its renewal 
application. Such credit will not be allowed if the modification 
application is dismissed or denied.

[FR Doc. 95-26748 Filed 10-31-95; 8:45 am]
BILLING CODE 6712-01-M