[Federal Register Volume 62, Number 41 (Monday, March 3, 1997)]
[Rules and Regulations]
[Pages 9636-9673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5128]



[[Page 9635]]

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Part III





Federal Communications Commission





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47 CFR Part 1, et al.



The Wireless Communications Service; Final Rule

  Federal Register / Vol. 62, No. 41 / Monday, March 3, 1997 / Rules 
and Regulations  

[[Page 9636]]



FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 2, 27, and 97

[GN Docket No. 96-228; FCC 97-50]


The Wireless Communications Service (``WCS'')

AGENCY: Federal Communications Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: On February 19, 1997, the Federal Communications Commission 
(``Commission'') adopted a Report and Order establishing rules and 
policies for a new Wireless Communications Service (``WCS'') in the 
2305-2320 and 2345-2360 MHz bands. This action is being taken pursuant 
to the Omnibus Consolidated Appropriations Act, 1997. The effect of 
this action is to make thirty megahertz of spectrum available for the 
provision of fixed, mobile, and radiolocation services, and satellite 
Digital Audio Radio Services.

EFFECTIVE DATE: March 3, 1997.

FOR FURTHER INFORMATION CONTACT: Matthew Moses or Josh Roland, Wireless 
Telecommunications Bureau, (202) 418-0660.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order in GN Docket No. 96-228. The complete Report and Order is 
available for inspection and copying during normal business hours in 
the FCC reference Center (Room 239), 1919 M Street, N.W., Washington, 
D.C., and also may be purchased from the Commission's copy contractor, 
International Transcription Service, (202) 857-3800, 2100 M Street, 
N.W., Washington, D.C. 20037. The complete Report and Order is also 
available on the Commission's Internet home page (http://www.fcc.gov).

Summary of the Report and Order

    1. In this Report and Order, the Commission fulfills the 
Congressional mandate expressed in section 3001 of the Omnibus 
Consolidated Appropriations Act for 1997, Public Law 104-208, 110 Stat. 
3009 (1996) (``Appropriations Act''), to reallocate and assign the use 
of the frequencies at 2305-2320 and 2345-2360 MHz. The Commission 
considers the proposals set forth in the Notice of Proposed Rule Making 
concerning amendment of the Commission's rules to establish the WCS. 
See Amendment of the Commission's Rules To Establish Part 27, the 
Wireless Communications Service, GN Docket No. 96-228, Notice of 
Proposed Rule Making, FCC 96-441, 61 FR 59048 (November 20, 1996) 
(``NPRM'').

A. Licensing Plan for WCS

i. Permitted Services
    2. In the NPRM, the Commission concluded that the Appropriations 
Act's reallocation directive means that the Commission may allocate the 
2305-2320 and 2345-2360 MHz bands to any or all radio services 
contained in the International Table of Frequency Allocations 
applicable to the United States. The Commission proposed to allocate 
this spectrum to the fixed, mobile, and radiolocation services on a 
primary basis, which are all the services authorized on a primary basis 
for these entire bands in the International Table. The Commission also 
proposed to retain the current primary audio broadcasting-satellite 
allocation that exists in 45 of the 50 MHz of these bands (2310-2320 
and 2345-2360 MHz). The Commission did not propose to change the 
Amateur Radio Service secondary allocation of the 2300-2310 MHz band, 
nor the authorization for the 2310-2360 MHz band to be used on a 
secondary basis by aeronautical telemetry operations.
    3. The Commission noted that in its Satellite DARS NPRM it had 
requested comment on whether it should delay issuing licenses for DARS 
in the 2310-2320 MHz portion of the DARS allocated spectrum due to the 
number and type of Canadian fixed service facilities in that band. See 
Establishment of Rules and Policies for the Digital Audio Radio 
Satellite Service in the 2310-2360 MHz Frequency Band, IB Docket No. 
95-91, Notice of Proposed Rule Making, 11 FCC Rcd 1, 60 FR 35166 (July 
6, 1996) (``Satellite DARS NPRM''). The Commission also noted that in 
February 1996, it had informed DARS applicants that previously unknown 
additional Canadian operations existed in the 2310-2360 MHz band that 
particularly impacted potential use of the 2345-2360 MHz portion of the 
band for DARS. Accordingly, the Commission requested comment on the 
feasibility of satellite DARS in parts of the 2305-2320 and 2345-2360 
MHz bands.
    4. The Commission concludes that under the totality of 
circumstances presented, the 2310-2320 and 2345-2360 MHz bands will be 
allocated on a primary basis for fixed, mobile, radiolocation, and 
broadcasting-satellite (sound) services without further designations. 
The 2305-2310 MHz band will be allocated on a primary basis for fixed, 
mobile except aeronautical mobile, and radiolocation services. WCS 
licensees themselves will determine the specific services they will 
provide within their assigned spectrum and geographic areas. The 
services that can be provided, however, will be subject to specific 
technical rules we adopt infra to prevent interference to other 
services. The Commission emphasizes that with the current state of 
technology there is a substantial risk that these rules will severely 
limit, if not preclude, most mobile and mobile radiolocation uses. 
Fixed uses will be less severely affected, but still will require 
equipment that will meet technical standards higher than those used for 
similar purposes on comparable bands, and therefore may be more costly.
    5. The Commission believes that in this instance a flexible use 
allocation serves the public interest. Permitting a broad range of 
services to be provided on this spectrum will permit the development 
and deployment of new telecommunications services and products to 
consumers. Moreover, WCS licensees will not be constrained to a single 
use of this spectrum and, therefore, may offer a mix of services and 
technologies to their customers.
    6. The Commission recognizes the concerns raised by commenters 
about the general application of flexible allocations, and it is our 
intent to address those concerns fully in future proceedings. In this 
regard, the Commission emphasizes that its decision in this instance to 
adopt a broadly defined service for this spectrum should not be 
interpreted as a finding on the merits of flexibility as general 
allocation policy or prejudging the merits of flexibility in any other 
proceeding before us. Rather, the Commission's decision here is based 
on the totality of the circumstances and facts particular to this 
proceeding, not the least of which is the short time mandated by 
Congress to bring this spectrum to auction. Importantly, in this 
particular instance the record does not convincingly demonstrate how 
this spectrum should be distributed among particular uses in a manner 
that would provide maximum benefit to the public. Specific services 
advocated by commenters span a wide range of potential uses, including 
interactive, high-speed, broadband data services, such as wireless 
Internet access; return links for interactive cable and broadcasting 
service; mobile data; satellite DARS; fixed terrestrial use; new and 
innovative services; radiolocation; educational applications; and 
wireless local loop. While individual commenters advocate specific 
allocations for one or more of these uses, the Commission has no clear 
basis in the current record to prefer some uses

[[Page 9637]]

over others. Thus, limiting the use as some have suggested would risk 
precluding potentially beneficial services.
    7. The Commission finds that allocating this spectrum for fixed, 
mobile, radiolocation, and audio broadcasting-satellite services is 
consistent with the international agreements governing this spectrum, 
the Appropriations Act, the Communications Act, and Commission 
precedent. The Commission notes that the Appropriations Act 
specifically directs the Commission to reallocate the WCS frequencies 
to ``wireless services that are consistent with international 
agreements concerning spectrum allocations.'' See Appropriations Act, 
section 3001(a)(1). Nothing in this provision or its legislative 
history restricts the Commission's authority to assign or allocate this 
spectrum to more than one permissible use. Additionally, the 
Commission's allocation to more than one service is consistent with the 
Commission's obligations under the Communications Act. Section 303 of 
the Communications Act does not restrict the Commission's discretion to 
prescribe the nature of the service to be rendered over radio 
frequencies or its authority to allocate frequencies to the various 
classes of stations or assign spectrum to stations for more than one 
permissible use. With respect to allocation decisions, the courts have 
accorded ``substantial deference'' to Commission determinations.
    8. Commission precedent also supports the permissibility of 
allocating spectrum in a manner that allows for a broad range of uses. 
The Commission noted in the NPRM that the Commission took this approach 
in establishing GWCS in August of 1995, where it concluded that 
authorizing a wide variety of services bounded only by international 
allocations comported with its statutory authority and served the 
public interest by fostering the provision of a mix of services. 
Because GWCS licenses have yet to be auctioned, the evidence regarding 
the benefits of having allocated that spectrum to all uses permitted by 
the Commission's international obligations is inconclusive.
    9. The Commission continues to believe that such broad allocations 
are permitted under the Communications Act, and the Commission notes 
that it also recently permitted CMRS licensees to provide fixed and 
mobile services. See Amendment of the Commission's Rules to Permit 
Flexible Service Offerings in the Commercial Mobile Radio Services, WT 
Docket No. 96-6, First Report and Order, 11 FCC Rcd 8965, 61 FR 43721 
(August 26, 1996). The action the Commission takes here is consistent 
with this precedent. The Commission notes also that its service 
designation decision is not so broad as to allow use of the WCS 
frequencies for any purpose whatsoever. For example, the international 
allocation for part of this spectrum is for audio broadcast satellite 
services, and therefore satellite services will be limited to this type 
of satellite services.
    10. The Commission disagrees specifically with those commenters who 
assert that allocating these frequencies for fixed, mobile, 
radiolocation and audio broadcasting-satellite services is an 
impermissible allocation by auction or otherwise inconsistent with 
Section 309(j). The allocation decision the Commission makes in this 
proceeding is based on the Commission's finding that under the 
circumstances presented, including the statutory deadline and the lack 
of a record that supports a specific allocation, this allocation to 
fixed, mobile, radiolocation, and audio broadcasting-satellite services 
comports with the public interest and with the Commission's statutory 
authority. Thus, the Commission's decision to allocate this spectrum in 
this manner is unrelated to its decision to award WCS licenses through 
competitive bidding.
    11. In addition, the Commission disagrees with those commenters' 
arguments that by adopting its proposal the Commission is impermissibly 
delegating its authority to allocate spectrum and set technical rules 
to other parties. The allocation the Commission makes here is not 
entirely open-ended, and auction winners will be subject to strict 
technical rules that are necessary to prevent interference to other 
services and which also will likely limit the actual services they may 
be able to offer. As discussed infra, these technical rules are 
necessary to prevent interference. Therefore, the Commission has not 
delegated to private parties its responsibility to allocate spectrum 
and adopt appropriate technical standards.
    12. The Commission also agrees with commenters such as Lucent, 
Motorola, Nortel and CTIA who argue that economies of scale in 
equipment supply are important and recognize that our decision to adopt 
a flexible allocation may make achieving those economies of scale more 
difficult. However, the Commission has taken several steps that it 
hopes will assist licensees in achieving economies of scale. For 
example, the Commission has established relatively large geographic 
service areas and spectrum block sizes. The Commission also is adopting 
licensing and auction rules designed to facilitate geographic area and 
spectrum aggregations that may foster economies of scale and, in 
developing their bidding and aggregation strategies, bidders can 
consider the benefits of such economies. The Commission believes that 
the allocation and service rules adopted herein comply with all legal 
requirements and, considering the totality of the circumstances, serve 
the public interest.
    13. The Commission does not believe that the public interest will 
be served by prohibiting use of this spectrum for CMRS. It has been the 
Commission's consistent policy to actively seek to increase competition 
in telecommunications markets, and its decision here is consistent with 
that policy. Indeed, in the Omnibus Budget Reconciliation Act of 1993, 
Public Law 103-66, Congress ordered the transfer of a large amount of 
government spectrum to the Commission's jurisdiction for 
nongovernmental use. CMRS licensees have no reasonable basis to expect 
that the Commission would limit the possibility of further entry by 
withholding spectrum or by unnecessarily restricting the permissible 
uses of newly allocated spectrum. However, the Commission notes that, 
given the out-of-band emission limits it adopt for WCS, technology will 
likely severely limit, if not preclude, most mobile services on this 
spectrum, at least in the near term.
    14. Some commenters express concern with difficulties in 
controlling interference. The Commission is responding to this concern 
by setting specific limits on field strength at the geographic 
boundaries between licensees and on emissions outside the assigned 
spectrum blocks. While the Commission recognizes that different system 
designs have different sensitivities to interference and cause 
different types and degrees of interference, the Commission believes 
that these limits provide a reasonable degree of predictability as to 
the magnitude of interfering signals one can expect from adjacent areas 
and spectrum blocks. However, the Commission recognizes that these out-
of-band and out-of-area power limits do not by themselves ensure 
interference-free operation. They control primary factors that 
determine the amount of interference a licensee can expect from 
neighboring areas and blocks, but there are many other factors that 
affect interference that they do not control and that are not under the 
receiver owner's direct control. For example, the level of interference 
caused to a licensee's receivers from transmitters in an adjacent 
spectrum block may also

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depend on the number of such transmitters, their location relative to 
the receivers, their antenna directivity and polarization, their duty 
cycle, and other factors. Since these factors are not regulated by the 
Commission, they create uncertainty about the amount of interference a 
licensee may receive. Licensees can reduce this uncertainty by 
coordinating with their neighbors, and the Commission encourages them 
to do so. They also can reduce the risk of interference by properly 
designing and engineering their receiving systems and by using 
technologies that reduce their receivers' susceptibility to unwanted 
signals. Also, bidders can reduce their exposure to interfering signals 
from neighboring spectrum blocks or areas by aggregating adjoining 
licenses in the auction or through post-auction transactions. But again 
the Commission emphasizes that interference-free operation is not 
assured by the Commission's limits. Each WCS licensee must ultimately 
assume responsibility for protecting its own receiving system from 
interference from transmitters in adjoining blocks and areas that meet 
the Commission's limits, and applicants should understand this before 
they bid for these licenses.
    15. Finally, in the NPRM, the Commission proposed to permit 
amateurs to continue to use the 2305-2310 MHz band on a secondary 
basis. The Commission also proposed to permit continued flight test and 
vehicle launch use of the 2310-2320 and 2345-2360 MHz bands on a 
secondary basis. The Commission is adopting these proposals. The effect 
of this action is that amateurs and aeronautical telemetry operations 
will be able to continue to use these bands so long as these operations 
do not interfere with WCS service. In addition, the Commission updates 
and clarifies the frequency sharing requirements for amateur use of the 
2300-2310 MHz and adjacent bands. The Commission also clarifies that 
footnotes US276 and US339 permit the use of various frequencies for 
telemetering and associated telecommand operations of launch vehicles 
``on a co-equal basis by Government and non-Government stations.'' With 
respect to Primosphere's request that all flight test operations be 
precluded from the WCS bands, the Commission finds no basis for 
precluding such operations on a secondary basis. The Commission makes 
clear that if secondary flight test operations cause harmful 
interference to WCS operations, they must immediately either correct 
the problem or cease operations. If such operations prove to be a 
problem, however, the Commission may re-evaluate this issue in the 
future.
ii. Spectrum for Each License
    16. In the NPRM, the Commission requested comment on the 
appropriate amount of spectrum to be provided for each WCS license at 
2.3 GHz. The Commission specifically requested comment on whether 5, 
10, 15 or 30 MHz is the most suitable amount. The Commission noted that 
5 MHz bandwidths would be sufficient for paging, radiolocation, 
dispatch, or point-to-point backbone operations. The Commission also 
observed that larger bandwidths, such as 10 to 15 MHz, would allow more 
direct competition with existing fixed and mobile service providers and 
may also better support some multi-channel satellite DARS. The 
Commission also asked for comment on whether a single 30 MHz license 
would offer the most effective approach for providing new two-way fixed 
or point-to-multipoint uses, such as interconnection with the Internet 
and other digital network services. Finally, the Commission requested 
comment on what size spectrum block could best support, in part or 
fully, the provision of fixed local loop services.
    17. The Commission also sought comment on whether the WCS spectrum 
should be assigned on a paired or unpaired basis. Alternatively, the 
Commission requested comment on an approach where spectrum bandwidths 
or pairing of the spectrum are determined through the competitive 
bidding process. The Commission noted that the 30 MHz of spectrum could 
be divided into 5 MHz blocks and the amount of spectrum and the 
location of the spectrum (i.e., contiguous or paired) for each WCS 
licensee could be determined through the auction process. The 
Commission further invited commenting parties to suggest additional 
alternatives for both the amount of spectrum and the size of service 
areas for WCS licensees. The Commission noted that the Appropriations 
Act requires that we conclude initial licensing of this spectrum and 
the collection of all bidding proceeds no later than September 30, 
1997. The Commission stated its belief that licensing the WCS spectrum 
for service to large areas, with relatively few licenses to be awarded, 
would speed the WCS licensing process and the collection of bidding 
proceeds, consistent with the requirements of the Appropriations Act. 
Whatever initial licensing approach is chosen for WCS, the Commission 
proposed to permit spectrum and service area aggregation through the 
auction process, e.g., the Commission would permit parties to bid for 
more than one license in each geographic area and for multiple areas.
    18. The Commission observes that the commenting parties generally 
support either 5 MHz unpaired channel blocks or 10 MHz paired channel 
blocks, with the vast majority finding that at least 10 MHz is needed 
to provide certain WCS services in an efficient and competitive manner. 
The Commission notes, however, that the potential uses of the WCS 
spectrum will be greatly affected by the out-of-band emission limits, 
discussed in Section III.D.7 infra, needed to protect satellite DARS 
reception in the 2320-2345 MHz band. In particular, these limits will 
have the greatest impact on the portion of the WCS spectrum immediately 
adjacent to the satellite DARS band, namely, the WCS spectrum at 2315-
2320 MHz and 2345-2350 MHz. In order to account for this effect in 
light of the overall record of this proceeding, and to minimize its 
impact on WCS operations generally, the Commission finds that WCS 
should be licensed initially as two 10 MHz channel blocks (with 5 MHz 
of this spectrum from the lower band paired with 5 MHz from the upper 
band) plus two 5 MHz blocks (those immediately adjacent to the 
satellite DARS spectrum). The Commission believes that this 
channelization will permit WCS licensees to offer a wide variety of 
services. For example, the record suggests that the 10 MHz channel 
blocks represent the minimum amount of spectrum needed to support 
certain data and wireless local loop services, including wireless 
Internet access. In addition, the Commission believes that providing 
for 10 MHz of spectrum on a paired basis would allow for the 
introduction of both one-way and two-way services and would facilitate 
the implementation of a variety of technologies. In the spectrum 
adjacent to the satellite DARS band, however, the Commission believes 
that WCS mobile operations may be prohibitively expensive and 
technologically infeasible for a substantial period of time. Also, the 
narrow (i.e., 30 MHz) transmit and receive separation between the 2315-
2320 MHz and 2345-2350 MHz bands would substantially increase the cost 
of equipment employing traditional frequency division duplex technology 
if pairing of these blocks were required. By making this spectrum 
available initially to WCS licensees as two 5 MHz unpaired channel 
blocks, the spectrum may have increased utility for satellite DARS and 
a variety of WCS fixed operations, especially those employing time 
division duplex technology. Also,

[[Page 9639]]

the Commission will not preclude WCS licensees from pairing this 
spectrum on their own initiative, whether through submission of winning 
bids for each block at auction or through spectrum aggregation in the 
aftermarket. Another advantage of this overall initial licensing 
approach is that the offering of only four licenses in each service 
area will allow the WCS auction to be completed within the timetable 
contemplated by the Appropriations Act. In this respect, the Commission 
believes that this licensing plan is superior to other options 
suggested by the commenters that would involve greater licensing 
complexity and probably greater delay. The initial channel blocks the 
Commission has selected are shown in the Table below.

------------------------------------------------------------------------
           Channel block                       Frequency range          
------------------------------------------------------------------------
A.................................  2305-2310 and 2350-2355 MHz.        
B.................................  2310-2315 and 2355-2360 MHz.        
C.................................  2315-2320 MHz.                      
D.................................  2345-2350 MHz                       
------------------------------------------------------------------------

    19. As discussed, infra, the Commission also is allowing for 
spectrum aggregation and disaggregation, without restriction, so that 
parties, for example, desiring to employ technology that requires 
unpaired spectrum or asymmetrically paired spectrum can either 
disaggregate the channels initially offered or purchase additional 
needed amounts of spectrum in the after-market. In addition, applicants 
may bid on all four channel blocks in a service area and, if 
successful, render the type of services addressed by those commenters 
supporting the licensing of WCS spectrum in a single 30 MHz block. 
Thus, the initial offering of WCS spectrum in 5 MHz or 10 MHz blocks 
does not preclude the offering of services which might require a 
greater amount of spectrum. Further, the disaggregation flexibility 
afforded licensees potentially allows provision of WCS services which 
require less spectrum than contained in the initial blocks. In sum, 
initially licensing the WCS spectrum according to the channel block 
plan identified above and allowing for spectrum aggregation and 
disaggregation will permit a wide variety of applicants to provide 
services and satisfy the requirements of the Appropriations Act. The 
Commission also believes that providing for four blocks, along with our 
spectrum disaggregation rules, will promote the objectives of Section 
309(j)(4)(C) of the Communications Act by providing for distribution of 
licenses and services among geographic areas and providing greater 
opportunity for a wide variety of applicants, including small 
businesses and other designated entities, than would be possible under 
a single 30 MHz block plan.
iii. Licensed Service Areas
    20. In deciding on the appropriate service areas size for WCS 
licenses, the Commission must balance several factors. The Commission 
wishes to encourage the rapid deployment of new telecommunications 
technologies and services on WCS spectrum; thus, the Commission must 
assess the use or uses to which this spectrum is likely to be put and 
determine the geographic scope that would best facilitate rapid 
deployment thereof. In addition, the Commission believes that because 
this spectrum has not heretofore been used to provide commercial 
services and no equipment has yet been developed for use in this band, 
consumers would benefit if the WCS band plan enables equipment 
manufacturers to realize economies of scale that will translate to 
lower equipment costs to service providers. The Commission also 
recognizes that the Appropriations Act directed it to ``assign the use 
of (WCS) frequencies by competitive bidding pursuant to section 
309(j).'' Appropriations Act, section 3001(a)(2). Section 309(j) of the 
Communications Act includes as objectives for competitive bidding the 
avoidance of excessive concentration of licenses and the dissemination 
of licenses among a wide variety of applicants. See 47 U.S.C. 
309(j)(3)(B). In addition, the Commission is mindful of our statutory 
obligation to conduct the auction for WCS licenses to ensure that all 
proceeds are deposited by September 30, 1997, and of our experience in 
previous auctions, which has shown that simultaneous, multiple round 
auctions for a larger number of licenses are more complex and take 
longer to complete than similar auctions involving fewer licenses. 
Finally, the Commission notes that aggregation of both spectrum and 
service areas through the auction process has proven to be an effective 
method of allowing bidders to acquire the right amount of spectrum for 
their business needs.
    21. Balancing the various factors noted above, the Commission 
concludes that WCS will be licensed in two ways. First, with respect to 
the C and D blocks, WCS will be licensed on the basis of regional areas 
similar to those used in our narrowband PCS rules. In WCS, however, the 
Commission will define the regions by aggregating EAs in the 
continental United States into 6 larger groupings. The Commission will 
refer to these service areas as Regional Economic Area Groupings 
(REAGs). In addition, consistent with the Commission's approach in 
other services, the Commission will create separate REAGs covering the 
five U.S. possessions, as follows: Guam and the Northern Mariana 
Islands (REAG # 9), Puerto Rico and the U.S. Virgin Islands (REAG 
# 10) and American Samoa (REAG # 11), as well as separate 
service areas for Alaska (REAG # 7) and Hawaii (REAG # 8). As 
discussed more fully infra, the Commission also will create a service 
area in the Gulf of Mexico (REAG # 12). Second, the A and B blocks 
will be licensed in smaller areas, by aggregating EAs into 46 areas (to 
be called Major Economic Areas, or MEAs) in the continental United 
States and an additional 6 areas covering Alaska (MEA # 47); 
Hawaii (MEA # 48); Guam and the Northern Mariana Islands (MEA 
# 49); Puerto Rico and the U.S. Virgin Islands (MEA # 50); 
American Samoa (MEA # 51); and the Gulf of Mexico (MEA # 52). 
The Commission believes that this licensing scheme satisfies the 
various and often conflicting positions raised by the commenters and 
will best accommodate our objectives under 309(j) of the Communications 
Act.
    22. Specifically, the larger WCS license areas that the Commission 
will provide for in the C and D blocks will accommodate those 
commenters who argue that large areas will (1) encourage the rapid 
development and deployment of innovative service; (2) facilitate 
interoperability and the setting of standards; (3) allow for economies 
of scale that will encourage the development of low cost equipment; and 
(4) facilitate provision of satellite DARS services. Many commenters in 
this proceeding point out that WCS spectrum can be used effectively to 
provide wireless local loop, broadband data services and DARS services. 
At least with respect to these services, there may be significant 
economic efficiencies that could be realized--to the ultimate benefit 
of consumers--if these services were to be provided with nationwide 
scope. Licensing the C and D blocks in WCS on a REAG basis may 
facilitate aggregation of service areas and speed implementation of 
these new services.
    23. In addition, a number of commenters point out that ensuring 
technical coordination and minimizing interference across geographic 
areas is very difficult when the exact nature of the services to be 
provided is unknown and the spectrum may be used to provide a variety 
of service offerings. The larger service areas in the C and D

[[Page 9640]]

blocks will speed and simplify the process of interference coordination 
along geographic boundaries, as well as minimize transaction costs and 
disputes arising from interference, and facilitate implementation of 
services that would require roaming capabilities and easy 
interoperability. In addition, because equipment currently is not 
available for use in this band, the larger service areas in the C and D 
blocks also should enable manufacturers to achieve greater economies of 
scale in production of equipment, thus reducing its per-unit cost and 
allowing more rapid deployment of services to the ultimate benefit of 
consumers.
    24. While the Commission is mindful of the desire of some parties 
to have large licenses, the Commission also agrees with commenters that 
contend that smaller businesses will have more difficulty competing in 
the WCS auction for licenses in the large regions. In this regard, the 
Commission believes that the creation of smaller MEAs in the A and B 
blocks (along with the large bidding credits provided for small 
businesses, see infra), will provide greater opportunities for smaller 
businesses to compete in an auction and participate in the provision of 
WCS services. The Commission further notes that, consistent with views 
of some commenters, these smaller service areas will: (1) Enable a 
larger number of entities to participate in the provision of services 
and result in increased competition; (2) encourage a more diverse group 
of service providers due to the lower costs of participating in the 
auction; and (3) result in broader flexibility in service offerings by 
WCS licensees. The Commission also believes that these smaller service 
areas will encourage efficiencies by making it easy for a bidder to 
acquire licenses for only as much area as required for its prospective 
service.
    25. The Commission notes that some commenters support even smaller 
BTAs and MSAs/RSAs to facilitate participation in the WCS service by 
small businesses. The Commission finds that service areas based on such 
smaller areas might compromise its ability to complete the WCS auction 
within the statutorily mandated time frame. In any event, the 
Commission notes that in addition to the large bidding credits offered 
to small businesses, our provisions for partitioning and disaggregation 
(see infra) should work to provide significant opportunities to smaller 
businesses to participate in the provision of WCS services.
    26. As noted above, two commenters, SOSCO and PetroCom, advocate 
licensing the Gulf of Mexico as a separate service area to help meet 
the growing communications needs of petroleum and natural gas providers 
in the area. In light of those requests, the Commission designates a 
separate REAG and MEA covering the Gulf of Mexico. The Commission 
determines that land-based license regions abutting the Gulf of Mexico 
will extend to the limit of the territorial waters of the United States 
in the Gulf, which is the maritime zone that extends approximately 
twelve nautical miles from the U.S. baseline. Beyond that line of 
demarcation, the Commission will create the Gulf of Mexico REAG and 
MEA, which will extend from that line outward to the broadest 
geographic limits consistent with international agreements (see maps at 
Appendices C and D of the Report and Order). The limits and 
coordination of signal strengths at the boundaries of the service areas 
meeting in the Gulf region will be the same as those that will apply 
for all service areas.
    27. Finally, the Commission notes that several commenters argue 
that their suggested WCS licensed service area sizes will increase 
auction revenues. The Commission wishes to make clear that, consistent 
with section 309(j)(7)(A) of the Communications Act, the Commission has 
considered the communications needs of potential service providers and 
the American public in developing these service areas. The Commission 
has not considered anticipated auction revenue.

B. Use of Competitive Bidding

    28. The Commission will adopt rules providing for the assignment of 
these frequencies through the use of competitive bidding pursuant to 
section 309(j). As the Commission noted in the NPRM, the Appropriations 
Act directs the Commission to assign licenses to use the 2305-2320 and 
2345-2360 MHz bands through competitive bidding pursuant to Section 
309(j) of the Communications Act. Section 309(j) provides that auctions 
may be used to award licenses among mutually exclusive applicants where 
the principal use of such spectrum will involve, or is reasonably 
likely to involve, a subscription-based service. See 47 U.S.C. 
309(j)(1), (2). The Commission continues to believe that it is 
reasonable to conclude that the principal use of WCS spectrum will 
involve, or is reasonably likely to involve, the transmission or 
reception of communications signals to subscribers for compensation. 
While the Commission has decided to permit WCS licensees to provide a 
range of services, the uses of this spectrum most mentioned by 
commenters appear to involve services that would be provided on a 
subscription basis. Fixed (and radiolocation) services that could be 
provided include services similar to the Multichannel Multipoint 
Distribution Service (``MMDS''), the Location and Monitoring Service 
(``LMS''), Digital Termination Systems (``DTS''), Digital Electronic 
Messaging Service (``DEMS''), wireless local loop, and certain of the 
services provided by Local Multipoint Distribution Service (``LMDS''). 
Although it may be technologically infeasible to provide mobile 
services as a WCS offering in the near future due to the necessity for 
strict technical standards (see infra), services that may ultimately be 
provided include those similar to PCS, cellular, Specialized Mobile 
Radio (``SMR'') and paging. All of these services currently are 
provided to subscribers for compensation and the Commission believes 
that it is reasonable to expect that WCS offerings will be provided on 
a similar basis. In this regard, even if a WCS licensee chooses to 
offer a satellite DARS service on that portion of the spectrum 
available for such use, the Commission believes it is likely that such 
service also will be offered on a subscription basis.
    29. The Commission's decision today also advances the objectives 
contained in section 309(j) of the Communications Act. Section 
309(j)(3)(A) directs the Commission to seek to promote the development 
and rapid deployment of new technologies, products, and services for 
the benefit of the public, including those residing in rural areas, 
without administrative or judicial delays. In this regard, the 
Commission believes that its service and licensing rules, in 
conjunction with its allocation plan, will allow for and foster the 
development of a range of new services and technologies. These policies 
also will advance the objective, expressed in section 309(j)(3)(B), of 
promoting economic opportunity and competition and ensuring that new 
and innovative technologies are readily accessible to the American 
people by avoiding excessive concentration of licenses and by 
disseminating licenses among a wide variety of applicants, including 
small businesses, rural telcos, and businesses owned by members of 
minority groups and women.
    30. The Appropriations Act states that in making these frequencies 
available for competitive bidding, the Commission shall seek to promote 
the most efficient use of the spectrum. See Appropriations Act, section 
3001(b)(1). As the Commission stated in the NPRM, the Commission 
believes that its competitive bidding rules will ensure

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that spectrum is made available to those who value it most highly and 
therefore are most likely to put it to its most economically efficient 
use. This outcome will be further assured by the Commission's use of a 
simultaneous, multiple round auction that will allow applicants to 
aggregate spectrum and service areas into parcels of efficient size and 
to realize economies of scale and scope without the need for costly and 
time consuming post-auction transactions. In addition, as indicated 
above, the Commission has decided to permit the WCS licensee to provide 
fixed, mobile, radiolocation or satellite DARS services. The Commission 
believes there are significant competitive alternatives for each of 
these types of services that will ensure that WCS licensees have 
incentives to operate in an efficient and effective manner. The 
Commission therefore believes that there will be sufficient market 
incentives to promote the most efficient use of the 2305-2320 and 2345-
2360 MHz bands, as required by the Appropriations Act and section 
309(j)(3)(D) of the Communications Act.

C. Consideration of Public Safety Needs

    31. As the Commission discussed in the NPRM, the Appropriations Act 
instructs it to take into account the needs of public safety radio 
services in making the WCS spectrum available through competitive 
bidding. Recognizing that the Appropriations Act marks the first time 
that Congress has specifically directed the Commission to consider the 
needs of public safety radio services in connection with licensing a 
particular spectrum band, the Commission sought comment generally on 
how it can best effectuate Congressional intent with regard to public 
safety needs as related to this spectrum. In addition, the Commission 
noted that in a post-enactment letter, the Chairman and Ranking Member 
of the House Committee on Commerce suggest that the Commission, 
consistent with its obligation to promote the public interest, pay 
particular attention to how the needs of public safety as well as 
commercial applicants may best be met in determining how to design this 
auction. The Commission referred to the recommendations made by the 
Public Safety Wireless Advisory Committee in its final report, and 
asked interested parties how our WCS rules should be fashioned so as to 
benefit the public safety community consistent with those 
recommendations. Finally, the Commission invited commenters to address 
a broad array of options, including making an allocation of some 
portion of the WCS spectrum for public safety entities, assigning the 
WCS spectrum with an obligation to contribute toward needs identified 
by the public safety community, and taking steps to encourage the use 
of WCS spectrum for services useful to public safety entities.
    32. The Appropriations Act requires that the Commission take into 
account the needs of public safety radio services. Therefore, the 
Commission must consider the communications needs of the public safety 
community in assigning WCS frequencies. The record compiled in this 
proceeding and in the Commission's public safety proceeding 
demonstrates that spectrum currently allocated to public safety 
spectrum is inadequate to meet the public safety community's voice and 
data needs. In addition, this record suggests that currently allocated 
spectrum will not permit deployment by public safety agencies of needed 
advanced data and video systems. The Appropriations Act requires, 
however, that the use of 30 MHz of spectrum in the 2.3 GHz band be 
assigned by competitive bidding pursuant to section 309(j) of the 
Communications Act. The Commission therefore concludes that allocating 
a portion of the 2.3 GHz spectrum for public safety appears to be 
inconsistent with the Appropriations Act because, pursuant to the 
Commission's auction authority, the Commission is not permitted to 
assign spectrum to public safety applicants by competitive bidding.
    33. In any case, even if spectrum were to be allocated for 
assignment only to public safety entities, the Commission does not 
believe that such an allocation would be the best way to meet those 
needs. The Commission notes that the WCS spectrum was not identified in 
the PSWAC Final Report as useful in meeting the public safety 
community's spectrum requirements. In this regard, the Commission 
believes that it is significant that APCO, the only public safety 
entity to comment in this proceeding, noted in its recent ex parte 
filing that facilitating possible public safety use of a small portion 
of the 2.3 GHz band for non-mission critical operations will have 
little or no impact on the spectrum needs identified by PSWAC. In 
addition, the Commission believes that it is significant that public 
safety entities do not currently have operations in any spectrum in or 
near the 2.3 GHz band. Thus, it may be more difficult for public safety 
entities to avail themselves of equipment economies of scale or to 
integrate this spectrum into their current communications systems. In 
addition, even if WCS spectrum were of some use to the public safety 
community, costly networks would still need to be constructed in order 
for useful services to be provided. In this regard, the Commission 
finds it significant that, as noted above, several commenters (both 
public safety entities and others) questioned whether a specific public 
safety allocation at 2.3 GHz would significantly assist public safety 
entities given the technical configuration and the financial resources 
that a 2.3 GHz system would require.
    34. The record in this proceeding also demonstrates that public 
safety agencies require additional funding to enable them to migrate to 
new spectrum and to upgrade and purchase new equipment. In addition, 
the Commission notes that the PSWAC Final Report found, the radio 
systems used by the Public Safety community are laboring under 
increasing burdens. Equipment is old and funding for new equipment is 
often scarce. The PSWAC Final Report also found that funding for 
acquisition of new spectrum-efficient technologies and/or relocation to 
different frequency bands is likely to be a major impediment to 
improving Public Safety wireless systems. The PSWAC Final Report 
includes recommendations regarding the future operational requirements 
of public safety agencies, methods for achieving greater 
interoperability among agencies, the technologies that are and will be 
available to meet public safety requirements, and the amount of radio 
spectrum that will be necessary to meet these requirements. Many of 
these requirements can be met by the Commission's allocation of 
additional spectrum to public safety agencies, and the report examined 
alternative approaches for obtaining funding to assist public agencies 
in an orderly migration to new spectrum allocations and advanced 
technologies.
    35. The Commission believes that, in order for the future needs of 
public safety wireless communications to be satisfied, new sources of 
funding will have to be devised. This is true regardless of the amount 
of spectrum made available for public safety. In this proceeding, the 
Commission has considered whether funds from the WCS auction could 
provide a source of funding for public safety agencies. The Commission 
notes, however, that section 309(j)(8)(A) requires that ``all proceeds 
from the use of a competitive bidding system under this subsection 
shall be deposited in the Treasury * * * .'' 47 U.S.C. 309(j)(8)(A). 
The only exceptions to this general rule are contained in sections 
309(j)(8)(B) (providing for retention of revenues as

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an offsetting collection for developing and implementing the auction 
program) and 309(j)(8)(C) (providing for deposit of upfront payments in 
an interest-bearing account, with interest transferred to the 
Telecommunications Development Fund). Therefore, it appears that 
legislative action is required before auction revenues can be used to 
provide a source of funding for public safety agencies to acquire new 
communications technologies. It is the Commission's belief that public 
safety agencies would benefit greatly from such action. The Commission 
notes that legislation recently introduced by Senator John McCain would 
provide for a portion of the revenues raised from an auction of 
spectrum currently used by television broadcast stations operating on 
channels 60-69 to be earmarked for ``funding State and local law 
enforcement and public safety agencies' mission-related radio 
communications capabilities.'' See S. 255, The Law Enforcement and 
Public Safety Telecommunications Empowerment Act, as introduced in the 
United States Senate on February 4, 1997, section 5(b)(1). The 
Commission believes that legislative approaches such as that taken in 
the McCain bill would substantially aid public safety agencies in their 
communications needs and thereby improve the safety of all Americans.
    36. Though the Commission has concluded that designating 2.3 GHz 
spectrum for use exclusively by public safety entities is not 
advisable, the Commission emphasizes its continuing commitment to 
address public safety needs. Specifically, the Commission is 
considering the operational, technical and spectrum requirements of the 
public safety community in our Public Safety proceeding. See The 
Development of Operational, Technical, and Spectrum Requirements for 
Meeting Federal, State and Local Public Safety Agency Communication 
Requirements Through the Year 2010, WT Docket No. 96-86, Notice of 
Proposed Rule Making, 11 FCC Rcd 12460, 61 FR 25185 (May 20, 1996). 
That proceeding examines what spectrum bands could be useful for 
meeting existing and future communications requirements, including 
voice, data (such as transmission of fingerprints, building floor plans 
and medical data), and video for surveillance monitoring. The 
Commission expects that additional spectrum will be made available for 
public safety use as a result of that proceeding, and that its decision 
in that proceeding will address the specific communications 
requirements and bands identified by PSWAC. In addition, the Commission 
notes that several commenters, including APCO and Motorola, reiterated 
the public safety community's need for 24 MHz of spectrum at UHF 
channels 60-69. The Commission believes that their proposal has merit 
and plan to give it serious consideration in our Digital Television 
proceeding. See Advanced Television Systems and Their Impact Upon the 
Existing Television Broadcast Service, MM Docket No. 87-268, Sixth 
Further Notice of Proposed Rule Making, 11 FCC Rcd 10968, 61 FR 43209 
(August 21, 1996). The Commission notes that legislation recently 
introduced by Senator McCain would direct the Commission to allocate 24 
MHz of the channel 60-69 spectrum to public safety use, See S. 255, The 
Law Enforcement and Public Safety Telecommunications Empowerment Act, 
as introduced in the United States Senate on February 4, 1997, section 
4(a), and that the Administration's 1998 budget also supports such a 
reallocation. See Testimony of Larry Irving, Assistant Secretary for 
Communications and Information, U.S. Department of Commerce, before the 
Subcommittee on Telecommunications, Trade and Consumer Protection of 
the U.S. House of Representatives Committee on Commerce, February 12, 
1997, at 24; see also Statement by Attorney General Janet Reno on 
Proposal to Set Aside Communications Frequencies for Public Safety Use, 
released February 6, 1997.
    37. The Commission declines to adopt special provisions to benefit 
petroleum and natural gas providers, railway operators and operators of 
water supply systems. Though the Commission recognizes that these 
entities perform valuable public service functions, the Commission does 
not believe that Congress intended that they be included in the class 
of ``public safety radio services'' that the Appropriations Act directs 
the Commission to take into account in this proceeding. The 
Commission's Rules define that term to include ``Local Government, 
Police, Fire, Highway Maintenance and Forestry-Conservation Radio 
Services.'' 47 CFR 90.15. The Commission declines to deviate from this 
established definition.

D. Service and Technical Rules

i. Eligibility
    38. The Commission concludes that, with the exception of the 
foreign ownership restrictions set forth in section 310 of the 
Communications Act, see 47 U.S.C. 310, there will be no eligibility 
restrictions on participation in WCS. As the Commission stated in the 
NPRM, opening the WCS market to a wide range of applicants will permit 
and encourage entrepreneurial efforts to develop new technologies and 
services. The Commission also believes that, given the relatively large 
amount of spectrum that is available to provide services similar to 
those that can be operated on the WCS spectrum, providing open 
eligibility in this instance will not lead to excessive concentration 
of market power. The Commission agrees with CPI that Section 27.302 
should ensure that WCS licensees are subject to all of the foreign 
ownership restrictions set forth in Section 310 of the Communications 
Act to the extent the restrictions are applicable to the particular 
service in question. Thus, for example, common carrier services would 
be subject to the restrictions in section 310(b). See 47 U.S.C. 310.
ii. CMRS Spectrum Cap
    39. The decisional factor in whether to apply the CMRS spectrum cap 
to any particular service is a balancing of the potential benefits and 
costs. The Commission believes that, in these unique circumstances 
where the Commission is allocating spectrum and licensing a wholly new 
service pursuant to congressional directive, the potential benefits do 
not outweigh the potential costs. Thus the Commission will not count 
holdings of WCS spectrum at 2.3 GHz against the CMRS spectrum cap.
    40. As the Commission noted in the NPRM, the CMRS spectrum cap was 
imposed out of concern that ``excessive aggregation [of spectrum] by 
any one of several CMRS licensees could reduce competition by 
precluding entry by other service providers and might thus confer 
excessive market power on incumbents.'' Implementation of sections 3(n) 
and 332 of the Communications Act, GN Docket No. 93-252, Third Report 
and Order, 9 FCC Rcd 7988, 8101, 59 FR 59945 (November 21, 1994) 
(``CMRS Third Report and Order''). The spectrum cap is intended to 
promote a vigorous competitive market for the provision of commercial 
mobile radio services, and to ensure that each mobile service provider 
(i.e., cellular, PCS or SMR licensee) has the opportunity to obtain 
sufficient spectrum to compete effectively and that no single provider 
is able to preclude the provision of service by effective competitors 
or significantly reduce the number of competitors by aggregating 
spectrum.
    41. As discussed more fully in Section III.D.7, infra, because the 
spectrum allocated for satellite DARS is situated between the two WCS 
bands, limitations

[[Page 9643]]

on out-of-band emissions by equipment operating on WCS spectrum are 
needed to protect against interference with sensitive satellite DARS 
reception. The Commission believes that the out-of-band emission limits 
we are adopting likely will, at least in the near term, make mobile 
operations in the WCS spectrum technologically infeasible. Hence, there 
is little likelihood that allowing an incumbent CMRS licensee to 
acquire enough WCS spectrum that its total CMRS and WCS spectrum 
holdings exceed the 45 MHz cap would have anticompetitive consequences 
for mobile services. Application of the CMRS spectrum cap to WCS 
spectrum is not necessary to guard against excessive concentration in 
the CMRS market or the accumulation of undue market power.
    42. Conversely, even if it is technically feasible to use this 
spectrum for CMRS-type service, applying the cap and excluding many 
existing CMRS providers from acquiring WCS licenses would, the 
Commission believes, carry significant potential costs for consumers. 
With their existing base station infrastructures, CMRS licensees may be 
the most efficient users of WCS spectrum because economies of scope may 
be large in the provision of new services combined with the provision 
of conventional mobile voice CMRS. For example, it may be that a 
current CMRS licensee would be able to use its existing infrastructure 
to provide fixed services in the most cost efficient manner. Site 
acquisition and zoning approval for new facilities is both a major cost 
component and a major delay factor in deploying wireless systems. 
Facilities at existing cellular or PCS sites might accommodate 
additional equipment for new services or be modified to do so at a 
significantly lower cost than deploying a whole new cell infrastructure 
for the new service in a crowded environment. There may be other 
economies of scope in the provision of different services as well. 
Applying the CMRS spectrum cap to the WCS spectrum would interfere with 
the realization of these savings by preventing the direct participation 
by those entities who own the existing CMRS infrastructure, and 
consequently, prevent consumers from benefiting from these savings, 
with little off-setting benefit in competition.
    43. The Commission recognizes that not applying the cap to WCS 
spectrum may result in some CMRS licensees acquiring spectrum and, 
provided that the technical obstacles noted infra can be overcome, that 
at some point these licensees may use WCS spectrum to compete against 
other CMRS licensees that have not acquired WCS spectrum. The 
Commission does not believe, however, that such a circumstance 
substantially risks impairing competition in the CMRS marketplace. When 
30 MHz PCS systems are fully deployed with the minimum number of cells 
needed for competitive coverage, they will provide a large increase in 
capacity over what is currently available. As for the argument that 
regulatory parity compels application of the CMRS spectrum cap to WCS 
spectrum, the Commission disagrees. Whether or not the cap is applied, 
all CMRS providers stand on equal footing with respect to the 
acquisition of WCS licenses, and any entity using WCS spectrum to 
provide CMRS services will be regulated in the same manner as all other 
CMRS providers.
iii. Disaggregation and Partitioning
    44. Consistent with the weight of the comments and with the 
Commission's recent decision to adopt the approach proposed in WT 
Docket No. 96-148 for broadband PCS, See Geographic Partitioning and 
Spectrum Disaggregation by Commercial Mobile Radio Services Licensees; 
Implementation of Section 257 of the Communications Act--Elimination of 
Market Entry Barriers, WT Docket No. 96-148, Report and Order and 
Further Notice of Proposed Rule Making, FCC 96-474, 62 FR 696 (January 
6, 1997) (``Partitioning and Disaggregation R&O''), the Commission 
adopts its proposals for geographic partitioning and spectrum 
disaggregation. We will permit WCS licensees to partition their service 
areas into smaller geographic service areas and to disaggregate their 
spectrum into smaller blocks. We also conclude that the specific rules 
pertaining to partitioning and disaggregation in WT Docket No. 96-148 
shall apply to WCS licensees. In addition, for the purposes of 
partitioning and disaggregation, we will require that WCS systems be 
designed so as not to exceed a signal level of 47 dBuV/m at the 
licensee's service area boundary, unless the affected adjacent service 
area licensees have agreed to a different signal level.
    45. In WT Docket No. 96-148, the Commission decided to permit 
geographic partitioning by broadband PCS licensees along any service 
area defined by the partitioner and partitionee. See Partitioning and 
Disaggregation R&O. In addition, the Commission decided to permit 
spectrum disaggregation by broadband PCS licensees without restriction 
on the amount of spectrum to be disaggregated. The Commission concluded 
that allowing parties to decide without restriction the amount of 
spectrum to be disaggregated will encourage more efficient use of the 
spectrum and permit the deployment of a broader mix of service 
offerings, both of which will lead to a more competitive wireless 
marketplace. Id. We believe that this reasoning applies with equal 
force to WCS. Therefore, subject to the provisions discussed below with 
respect to licensees who take advantage of bidding credits, once an 
initial WCS license is granted, licensees will be free to partition 
their service areas and disaggregate their spectrum. Finally, 
consistent with PCS and other CMRS services, WCS licensees will be 
allowed to use management and operational arrangements to permit others 
to use portions of their spectrum and geographic service areas. The 
Commission wishes to emphasize that the WCS licensee must retain 
ultimate control over and responsibility for all operations under such 
arrangements.
    46. The Commission concludes that any licensee will be permitted to 
partition its service area as long as it submits sufficient information 
to the Commission to maintain our licensing records. Partitioning 
applicants will be required to submit, as separate attachments to the 
partial assignment application, a description of the partitioned 
service area and a calculation of the population of the partitioned 
service area and licensed market. The partitioned service area must be 
defined by coordinate points at every 3 degrees along the partitioned 
service area agreed to by both parties, unless either (1) an FCC-
recognized service area is utilized (i.e., Major Trading Area, Basic 
Trading Area, Metropolitan Service Area, Rural Service or Economic 
Area) or (2) county lines are followed. These geographical coordinates 
must be specified in degrees, minutes and seconds to the nearest second 
of latitude and longitude, and must be based upon the 1927 North 
American Datum (NAD27). Applicants also may supply geographical 
coordinates based on 1983 North American Datum (NAD83) in addition to 
those required based on NAD27. This coordinate data should be supplied 
as an attachment to the partial assignment application, and maps need 
not be supplied. In cases where an FCC-recognized service area or 
county lines are being utilized, applicants need only list the specific 
area(s) (through use of FCC designations) or counties that make up the 
newly partitioned area.
    47. Similarly, where WCS licensees seek to disaggregate their WCS 
spectrum, the Commission will not

[[Page 9644]]

require the disaggregating party to retain a minimum amount of 
spectrum. The Commission will allow disaggregating parties to negotiate 
channelization plans among themselves as part of their disaggregation 
agreements, and the Commission will continue to require that such plans 
provide the necessary out-of-band emission protections to third party 
licensees as required by our rules. The Commission is not adopting a 
limit on the maximum amount of spectrum that licensees may 
disaggregate. The Commission finds no evidence at this time that a 
maximum limitation for disaggregation is necessary. WCS licensees shall 
be permitted to disaggregate spectrum without limitation on the overall 
size of the disaggregation as long as such disaggregation is otherwise 
consistent with our rules.
    48. The Commission declines to adopt RTG's proposal to provide 
rural telcos with a right of first refusal. Section 254 of the 
Telecommunications Act of 1996, Pub. L. 104-104, section 101, 110 Stat. 
56 (1996), states that, in seeking to promote its goal of universal 
service, the Commission should ensure that consumers from all parts of 
the Nation, including rural areas, have access to telecommunications 
and information services that is comparable to service in other, more 
urban areas and at rates that are comparable to the rates available in 
urban areas. Granting rural telcos a right of first refusal would be at 
odds with the Commission's goals of ensuring that the largest number of 
entities participate in the WCS marketplace and eliminating barriers to 
entry for small businesses. As the Commission concluded in WT Docket 
No. 96-148, the Commission also believes that a right of first refusal 
would be difficult to administer and could discourage partitioning. 
Partitioning and Disaggregation R&O. For example, an area proposed for 
partitioning to a non-rural telco may intersect with an area for which 
a rural telco has a right of first refusal. A further problem would be 
uncertainty as to whether the rural telco's right of first refusal 
would continue after the auction winner partitioned the license area to 
another party. Additionally, a partitioning agreement may be part of a 
larger assignment transaction. If a rural telco were able to exercise a 
right of first refusal with respect to a partitioned area, it may not 
be possible to separate out the partitioning agreement to stand on its 
own and the entire assignment transaction could not be consummated.
    49. If a WCS licensee that received a bidding credit partitions a 
portion of its license to an entity that would not meet the eligibility 
standards for a similar bidding credit, the Commission will require 
that the licensee reimburse the government for the amount of the 
bidding credit calculated on a proportional basis based upon the ratio 
of population of the partitioned area to the overall population of the 
licensed area. See 47 CFR 1.2110(f) and 24.717(c)(1). If a licensee 
that received a bidding credit partitions to an entity that would 
qualify for a lesser bidding credit, the Commission will require that 
the licensee reimburse the government for the difference between the 
amount of the bidding credit obtained by the licensee and the bidding 
credit for which the partitionee is eligible, calculated on a 
proportional basis based upon the ratio of population of the 
partitioned area. See 47 CFR 1.2110(f) and 24.717(c)(2). Similar 
provisions shall apply where a WCS licensee that receives a bidding 
credit seeks to disaggregate a portion of its spectrum to an entity 
that would not have qualified for such a bidding credit. All such 
unjust enrichment payments will be calculated based upon the ratio of 
the amount of spectrum disaggregated to the amount of spectrum retained 
by the original licensee. With respect to disaggregation from one 
licensee that qualified for a bidding credit to another licensee that 
would also qualify for a bidding credit, the Commission will adopt an 
approach similar to that adopted for partitioning.
    50. Finally, to allow WCS licensees flexibility to design the types 
of agreements they desire, the Commission will follow its decision in 
WT Docket No. 96-148 to permit combined partitioning and 
disaggregation. For example, a party may obtain a license for a single 
county with only 5 MHz of WCS block A spectrum. By allowing such 
combined partitioning and disaggregation, we believe that the goals of 
providing competitive service offerings, encouraging new market 
entrants, and ensuring quality service to the public will be advanced. 
The Commission further concludes that in the event that there is a 
conflict in the application of the partitioning and disaggregation 
rules, the partitioning rules should prevail. For the purpose of 
applying the Commission's unjust enrichment provisions relating to 
bidding credits, when a combined partitioning and disaggregation is 
proposed, the Commission will use a combination of both population of 
the partitioned area and amount of spectrum disaggregated to make these 
pro rata calculations. For example, if a WCS licensee that availed 
itself of a bidding credit and a non-qualifying partitionee/
disaggregatee were to agree on a 20 percent disaggregation of spectrum 
over 30 percent of the population of the licensed service area, an 
unjust enrichment payment of 6 percent (.20 x .30) of the bidding 
credit would be required.
    51. The Commission also notes that these geographic partitioning 
and spectrum disaggregation rules, while not a substitute for licensing 
directly from the Commission, nevertheless will help to eliminate 
market entry barriers, consistent with section 257 of the 
Communications Act, by providing smaller, less capital-intensive areas 
and spectrum blocks which are more accessible by small business 
entities. See 47 U.S.C. 257.
iv. License Term
    52. The WCS license term will be 10 years, with a renewal 
expectancy similar to that afforded PCS and cellular licensees. The 
Commission believes that this relatively long license term, combined 
with a renewal expectancy, will help to provide a stable regulatory 
environment that will be attractive to investors and, thereby, 
encourage development of this new frequency band. In the event that a 
WCS license is partitioned or disaggregated, any partitionee/
disaggregatee will be authorized to hold its license for the remainder 
of the partitioner's/disaggregator's original ten-year license term, 
and the partitionee/disaggregatee will be required to submit the 
showings required at the five-year mark and with its renewal 
application. The Commission believes that this approach, which is 
similar to the partitioning provisions we recently adopted for the MDS 
and for current broadband PCS licensees is appropriate because a 
licensee, through partitioning, should not be able to confer greater 
rights than it was awarded under the terms of its license grant.
    53. The Commission will require that a WCS licensee's renewal 
application include at a minimum the following showing to claim a 
renewal expectancy: (1) A description of current service in terms of 
geographic coverage and population served or links installed; (2) an 
explanation of the licensee's record of expansion, including a 
timetable for the construction of new base sites or links to meet 
changes in demand for service; (3) a description of the licensee's 
investments in its system; and (4) copies of any 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

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described by the requirements for the renewal expectancy.
v. Performance Requirements
    54. The Commission has concluded that, considering the unique 
circumstances in which WCS licenses are being awarded and the strict 
technical requirements necessary to prevent interference, it will adopt 
very flexible construction (or ``build-out'') requirements for WCS. 
Specifically, the Commission will require licensees to provide 
``substantial service'' to their service area within 10 years. Although 
WCS licensees will have incentives to construct facilities to meet the 
service demands in their licensed service area, the Commission believes 
that minimum construction requirements can promote efficient use of the 
spectrum, encourage the provision of service to rural, remote and 
insular areas and prevent the warehousing of spectrum.
    55. The build-out requirement that the Commission adopts today is 
the most liberal construction requirement adopted by the Commission to 
date. The Commission believes that this liberal build-out requirement 
is appropriate in the case of WCS for a number of reasons. First, the 
Commission is providing WCS licensees with the flexibility to offer a 
range of services using the WCS spectrum. Given the broad range of new 
and innovative services that the comments lead the Commission to 
believe might be provided over WCS spectrum, imposing strict 
construction requirements that would apply over the license term would 
be neither practical nor desirable as a means of meeting Section 
309(j)'s objectives regarding warehousing and rapid deployment. Without 
knowing the specific type of service or services to be provided, it 
would be difficult to devise specific construction benchmarks. Further, 
given the undeveloped nature of equipment for use in this band and the 
technical requirements the Commission is adopting to prevent 
interference, the Commission is concerned that strict construction 
requirements might have the effect of discouraging participation in the 
provision of services over the WCS spectrum. It may be that a potential 
licensee could efficiently conduct certain operations on WCS spectrum, 
but must await further technological developments to do so affordably. 
Adopting strict construction requirements here could effectively 
preclude efficient uses of the spectrum. Particularly in light of the 
technological uncertainties associated with use of WCS spectrum to 
provide certain services consistent with the interference levels the 
Commission adopts today, the Commission believes that stringent build-
out requirements are not warranted.
    56. At the ten year period, the Commission will require all 
licensees to submit an acceptable showing to the Commission 
demonstrating that they are providing substantial service. Licensees 
failing to demonstrate that they are providing substantial service will 
be subject to forfeiture of their licenses. The Commission notes that 
in the past it has defined substantial service as ``service which is 
sound, favorable, and substantially above a level of mediocre service 
which just might minimally warrant renewal.'' See, e.g., 47 CFR 
22.940(a)(1)(i). For WCS, however, the Commission believes that further 
elaboration on this standard in the form of examples of what might 
constitute substantial service is useful. Thus, for a WCS licensee that 
chooses to offer fixed, point-to-point services, the construction of 
four permanent links per one million people in its licensed service 
area at the ten-year renewal mark would constitute substantial service. 
In the alternative, for a WCS licensee that chooses to offer mobile 
services, a demonstration of coverage to 20 percent of the population 
of its licensed service area at the ten-year mark would constitute 
substantial service. In addition, the Commission may consider such 
factors as whether the licensee is offering a specialized or 
technologically sophisticated service that does not require a high 
level of coverage to be of benefit to customers, and whether the 
licensee's operations serve niche markets or focus on serving 
populations outside of areas served by other licensees. These safe-
harbor examples are intended to provide WCS licensees a degree of 
certainty as to how to comply with the substantial service requirement 
by the end of the initial license term. This requirement can be met in 
other ways, and the Commission will review licensees' showing on a 
case-by-case basis.
    57. The Commission believes that these build-out provisions fulfill 
its obligations under section 309(j)(4)(B). The Commission also 
believes that the auction and service rules which it is adopting for 
WCS, together with its overall competition and universal service 
policies, constitute effective safeguards and performance requirements 
for WCS licensing. Because a license will be assigned in the first 
instance through competitive bidding, it will be assigned efficiently 
to a firm that has shown by its willingness to pay market value its 
willingness to put the license to its best use. The Commission also 
believes that service to rural areas will be promoted by its decision 
to allow partitioning and disaggregation of WCS spectrum.
    58. Finally, the Commission reserves the right to review this 
liberal construction requirements in the future if we receive 
complaints related to section 309(j)(4)(B), or if the Commission's own 
monitoring initiatives or investigations indicate that a reassessment 
is warranted. The Commission also reserves the right to impose 
additional, more stringent construction requirements on WCS licenses in 
the future in the event of actual anticompetitive or rural service 
problems and if more stringent construction requirements can 
effectively ameliorate those problems.
vi. Regulatory Status
    59. The Commission concludes that it will rely on each WCS 
applicant to identify in its long-form application the type of WCS 
service or services it will provide. Although the Commission will not 
presume at the outset that a WCS applicant will provide CMRS service, 
the Commission continues to believe, as it stated in the NPRM, that 
this approach will allow the Commission to carry out its 
responsibilities while imposing the least regulatory burden on the 
licensee. The Commission also delegates to the Wireless 
Telecommunications Bureau and to the International Bureau authority to 
develop forms appropriate to collect this data, and to monitor changes 
in licensee status. The predominant uses of WCS spectrum mentioned by 
commenters involved personal communications such as broadband voice and 
data transmission, including wireless local loop and wireless Internet 
access. If WCS spectrum is used for satellite DARS services, those 
services will be governed by the satellite DARS regulations currently 
under development in IB Docket No. 95-91.
    60. The Commission's decision to permit WCS licensees to provide a 
variety or combination of services requires that the Commission adopt a 
licensing framework that authorizes WCS licensees to provide non-common 
carrier services as well as common carrier services. The Commission has 
recently increased the flexibility of licensees in other wireless 
services to provide both common carrier and non-common carrier 
services. In adopting a new application form for MDS, for example, the 
Commission provided applicants with the option on the new form to 
indicate their choice for common carrier or non-common carrier 
regulatory status. Amendment of Parts 21 and 74 of the Commission's 
Rules

[[Page 9646]]

with Regard to Filing Procedures in the Multipoint Distribution Service 
and in the Instructional Television Fixed Service, MM Docket No. 94-
131, and Implementation of Section 309(j) of the Communications Act--
Competitive Bidding, PP Docket No. 93-253, Report and Order, 10 FCC Rcd 
9589, 9619, 60 FR 36524 (July 17, 1995) (``MDS and ITFS Competitive 
Bidding Report and Order''). For satellite services, the Commission has 
decided to provide all U.S.-licensed fixed satellite service systems 
with a choice between offering common carrier and non-common carrier 
services and also the opportunity to elect their regulatory 
classification in their applications. Amendment to the Commission's 
Regulatory Policies Governing Domestic Fixed Satellites and Separate 
International Systems, IB Docket No. 95-41, Notice of Proposed Rule 
Making, 10 FCC Rcd 7789, 7795-7796, 60 FR 24817 (May 10, 1995); Report 
and Order, 11 FCC Rcd 2429, 2436, 61 FR 9946 (March 12, 1996) (``DISCO 
I Report and Order''). In another proceeding, the Commission has 
adopted streamlined rules in part 25 for satellite services to use a 
simplified procedure to change licenses from non-common carrier status 
to common carrier status. Streamlining the Commission's Rules and 
Regulations for Satellite Application and Licensing Procedures, IB 
Docket No. 95-117, Notice of Proposed Rule Making, 10 FCC Rcd 10624, 60 
FR 46252 (September 6, 1995); Report and Order, FCC 96-425, 62 FR 5924 
(February 10, 1997) (``Satellite Rules Report and Order''). Finally, 
when the Commission implemented DBS systems under interim rules it 
adopted a policy to permit the dual provision of common and non-common 
carrier services which continues under the permanent rules. The 
flexible licensing framework the Commission adopts for WCS is 
consistent with the treatment accorded these services.
    61. The Commission therefore will allow the service offering 
selected by a WCS licensee to determine its regulatory status. If a 
service offering falls within the statutory definition of common 
carrier, see 47 U.S.C. 153, the licensee will be subject to Title II 
and the licensing requirements of Title III of the Communications Act 
and the Commission's Rules. Otherwise, services provided on a non-
common carriage basis will be subject to Title III and certain other 
statutory and regulatory requirements, depending on the specific 
characteristics of the service. The Telecommunications Act of 1996 
provides that a telecommunications carrier will ``be treated as a 
common carrier under this Act only to the extent that it is engaged in 
providing telecommunications services.'' 47 U.S.C. 153(44). A 
telecommunications service is the ``offering of telecommunications for 
a fee directly to the public, or to such classes of users as to be 
effectively available directly to the public, regardless of the 
facilities used.'' 47 U.S.C. 153(46). Telecommunications means ``the 
transmission, between or among points specified by the user, of 
information of the user's choosing, without change in the form or 
content of the information as sent and received.'' 47 U.S.C. 153(43). 
The Commission adopted these definitions in new part 51, which provides 
the rules governing interconnection of such carriers. Implementation of 
the Local Competition Provisions in the Telecommunications Act of 
1996--CC Docket No. 96-98, Interconnection between Local Exchange 
Carriers and Commercial Mobile Radio Service Providers, CC Docket No. 
95-185, First Report and Order, 11 FCC Rcd 15499, 61 FR 45476 (August 
29, 1996), adopting new Rule 51.5. The U.S. Court of Appeals for the 
Eighth Circuit has stayed the pricing rules in the Order, pending 
review on the merits. See Iowa Utilities Board v. FCC, No. 96-3321 (8th 
Cir., Oct. 15, 1996). Thus, to the extent a WCS licensee is providing a 
service that fits within these definitions, that licensee will be 
subject to Title II and governed by the common carrier requirements 
pertinent to its services. Those requirements are set out in Part 1 and 
other parts of the Commission's Rules. In addition, the regulatory 
treatment of WCS licensees who choose to offer fixed or mobile 
telecommunications services will be addressed by the Commission in WT 
Docket No. 96-6. See Amendment of the Commission's Rules to Permit 
Flexible Service Offerings in the Commercial Mobile Radio Services, WT 
Docket No. 96-6, First Report and Order, 11 FCC Rcd 8965, 61 FR 43721 
(August 26, 1996).
    62. Apart from this designation of regulatory status, the 
Commission will not require WCS applicants to describe the services 
they seek to provide. It is sufficient that an applicant indicate its 
choice for regulatory status in a streamlined application process. In 
providing guidance on this issue to MDS applicants, for example, the 
Commission pointed out that an election to provide service on a common 
carrier basis requires that the elements of common carriage be present; 
otherwise, the applicant must choose non-common carrier status. Of 
course, if an applicant is unsure of the nature of its services and 
their classification as common carrier services, it may submit a 
petition with its application or at any time request clarification and 
include service descriptions for that purpose.
    63. The Commission also declines to require an applicant to choose 
between either common carrier or non-common carrier status in providing 
services in instances where it proposes to provide services that 
include elements of both common carrier and non-common carrier 
services. Instead, the Commission will permit both common carrier and 
non-common carrier services in a single license. An applicant may 
request both common carrier and non-common carrier status in the same 
application, which will result in the issuance of both authorizations 
in a single license. The licensee will be able to provide all WCS 
services anywhere within its licensed area at any time. This approach 
achieves efficiencies in the licensing and administrative process. The 
Commission notes that it has allowed certain mobile services in part 24 
and part 90 to be authorized in a single license on both a common 
carrier and private carrier basis in order to provide services in both 
categories of service. Implementation of Sections 3(n) and 332 of the 
Communications Act: Regulatory Treatment of Mobile Services, GN Docket 
No. 93-252, Second Report and Order, 9 FCC Rcd 1411, 1459, 59 FR 18493 
(April 19, 1994); 47 CFR Sec. 20.9(b).
vii. Out-of-Band Emission Limits
    64. In the NPRM, the Commission stated that, because WCS will 
operate in the 2305-2320 and 2345-2360 MHz bands, interference 
protection is required for the following adjacent operations: (1) 
Satellite DARS at 2320-2345 MHz, (2) Government Deep Space Network 
receivers at 2290-2300 MHz, and (3) Government and commercial telemetry 
above 2360 MHz.
    65. In order to provide protection to these adjacent operations, 
the Commission proposed that all emissions outside of the WCS bands of 
operation be attenuated below the maximum spectral power density (p) 
within the band of operation, as follows:

    (1) For fixed operations, including radiolocation: By a factor 
not less than 43 + 10 log (p) decibels (``dB'') on all frequencies 
between 2300 and 2305 MHz and above 2360 MHz; and not less than 70 + 
10 log (p) dB on all frequencies below 2300 MHz and between 2320-
2345 MHz band.
    (2) For mobile operations, including radiolocation: By a factor 
not less than 43 +

[[Page 9647]]

10 log (p) dB on all frequencies between 2300 and 2305 MHz, between 
2320 and 2345 MHz, and above 2360 MHz; and not less than 70 + 10 log 
(p) dB on all frequencies below 2300 MHz.
    (3) For WCS satellite DARS operations: The limits set forth in 
Sec. 25.202(f) of the Commission's rules. See 47 CFR 25.202(f).

    For fixed and mobile operations, including radiolocation, the 
Commission stated that the above requirements are based on peak power 
measurements (watts) using a resolution bandwidth of at least 1 MHz. In 
addition, to further protect operations in adjacent bands, the 
Commission proposed to require that the frequency stability of 
transmission within the 2305-2320 and 2345-2360 MHz bands be sufficient 
to ensure that the fundamental emissions remain within the authorized 
frequency bands.
    66. Finally, in order to protect Government Deep Space Network 
receivers at 2290-2300 MHz, the Commission proposed to prohibit use of 
the 2305-2310 MHz band for airborne or space-to-Earth links. Further, 
the Commission proposed that WCS operations within 50 kilometers (31 
miles) of 35 deg.20' North Latitude and 116 deg.53' West Longitude 
(coordinates of the Deep Space Network receive site) be subject to 
coordination. Alternatively, we requested comment on whether it would 
be more appropriate to require less out-of-band attenuation in the case 
of mobile transmitters (i.e., such transmitters would be subject to 
only the 43 + 10 log (p) dB requirement) but require that the 
coordination zone be extended to 120 kilometers (75 miles). The 
Commission specifically requested that parties address the trade-offs 
with regard to lower mobile equipment costs and the additional 
coordination constraints imposed by this alternative.
    67. Based on the record before it, the Commission finds that the 
WCS out-of-band limits proposed in the NPRM would be insufficient to 
protect certain sensitive operations on adjacent frequencies. While it 
is the Commission desire to provide WCS licensees with the maximum 
flexibility to provide a wide range of services, the Commission also 
must ensure that WCS operations do not cause harmful interference or 
disruption to adjacent satellite DARS reception or the operations of 
the Arecibo Observatory. With regard to satellite DARS reception in the 
2320-2345 MHz band, the Commission concurs with those commenting 
parties that suggest that additional attenuation of WCS out-of-band 
emissions is needed to protect such operations. The Commission is 
therefore modifying its original proposal and will require that all 
emissions from WCS fixed transmitters be attenuated below the 
transmitter power (p) by at least 80 + 10 log (p) dB and that all 
emissions from WCS mobile transmitters be attenuated at least 110 + 10 
log (p) dB within the 2320-2345 MHz band. In complying with these 
requirements, WCS equipment that uses circular polarization will be 
permitted to assume an allowance of 10 dB where such WCS equipment 
operates with opposite sense circular polarization from that used by 
DARS operators in the 2320-2345 MHz band.
    68. In addition, the Commission clarifies that (p) is the output 
power of the transmitter, in watts. The Commission further clarifies 
that out-of-band emissions in any 1 MHz bandwidth must be attenuated by 
X + 10 log (p) dB below the output power of the transmitter, where X is 
the attenuation required for a one watt transmitter. In addition, the 
Commission believes that requiring the out-of-band emissions 
measurement to be made by setting the measurement instrument resolution 
bandwidth to 1 MHz would unfairly penalize WCS equipment due to the 
difficulty of eliminating energy outside of the 1 MHz resolution 
bandwidth. Therefore, for out-of-band emissions measurements the 
Commission believes it is appropriate to permit use of a measurement 
instrument resolution bandwidth of less than the reference bandwidth of 
1 MHz, provided that the energy is integrated over a 1 MHz bandwidth.
    69. The Commission believes that these changes will provide 
significantly improved interference protection to DARS from WCS 
operations. The Commission is aware that these out-of-band emission 
limits may have significant cost or service implications for WCS, 
especially for operations on the channels immediately adjacent to the 
2320-2345 MHz band. In particular, the Commission understands that 
there is a substantial risk that the out-of-band emission limits it is 
adopting will, at least in the foreseeable future, make mobile 
operations in the WCS spectrum technologically infeasible. Nonetheless, 
the Commission finds that this level of attenuation is required in 
order to adequately protect satellite DARS reception from WCS 
transmissions. The Commission believes that WCS transmitters can meet 
these limits through a variety of measures, including the use of linear 
amplifiers, filters distributed throughout the transmitter, and 
spectrum shaping signal processing. In this regard, the Commission 
encourages potential WCS bidders and WCS equipment manufacturers to 
consult with one another prior to the commencement of the auction to 
determine what services and equipment can be economically provided on 
these frequencies. The Commission believes that the limits it is 
adopting will allow both WCS and DARS to successfully operate. The 
Commission also encourages and will allow WCS and DARS licensees to 
coordinate their operations to provide for greater or lesser protection 
on a mutually agreed basis. The Commission expects WCS and DARS 
licensees to cooperate fully to minimize the possibility of harmful 
interference from one service to the other.
    70. With regard to satellite DARS operations in WCS spectrum and 
the Arecibo Observatory, the Commission finds Cornell's comments 
persuasive. Accordingly, satellite DARS operations will be limited to a 
maximum power flux density of -197 dBW/m \2\/4 kHz in the 2370-2390 MHz 
band at Arecibo, Puerto Rico. The adoption of a power flux density 
limit has the advantages of being readily measurable and of not needing 
to be adjusted if spectrum outside the 2320-2345 MHz band is employed 
for satellite DARS operations. Thus, the Commission does not believe 
that Cornell's alternative out-of-band emission limit is necessary. 
Instead, since the location of the satellite will be known, it is a 
relatively simple matter for a satellite DARS licensee to meet this 
requirement.
    71. With regard to fixed and mobile operations, the Commission is 
adopting Cornell's proposed out-of-band emission limit of 70 + 10 log 
(p) dB for all frequencies above 2370 MHz. The Commission also believes 
that this out-of-band emission limit will help to protect aeronautical 
telemetry and associated telecommand operations in the 2360-2390 MHz 
band and the launch vehicle frequencies at 2370.5 and 2382.5 MHz.
    72. In order to protect the Deep Space receiver site located on 
Fort Irwin at Goldstone, California, the Commission is prohibiting use 
of the 2305-2310 MHz band for airborne or space-to-Earth links. 
Additionally, in the 2305-2320 MHz band, the Commission is requiring 
that all WCS equipment meet an out-of-band emission limit of 70 + 10 
log (p) on all frequencies below 2300 MHz. Finally, all WCS operations 
within 50 kilometers of 35 deg.20' North Latitude and 116 deg.53' West 
Longitude must be coordinated with the National Telecommunications and 
Information Administration (``NTIA'').
    73. In summary, the revised WCS out-of-band emission limits require 
that all emissions outside of WCS Blocks A, B,

[[Page 9648]]

C and D (``the licensed bands of operation'') be attenuated below the 
output power (p) of each transmitter, measured in watts, as follows:

    (1) For fixed operations, including radiolocation: By a factor 
not less than 80 + 10 log (p) dB on all frequencies between 2320 and 
2345 MHz.
    For mobile operations, including radiolocation: By a factor not 
less than 110 + 10 log (p) dB on all frequencies between 2320 and 
2345 MHz.
    For fixed and mobile operations, including radiolocation: By a 
factor not less than 70 + 10 log (p) dB on all frequencies below 
2300 MHz and on all frequencies above 2370 MHz; and not less than 43 
+ 10 log (p) dB on all frequencies between 2300 and 2320 MHz and on 
all frequencies between 2345 and 2370 MHz that are outside the 
licensed bands of operation. In addition, WCS operations within 50 
kilometers of Goldstone, California must be coordinated with NTIA.
    (2) For WCS satellite DARS operations: The limits set forth in 
Section 25.202(f) of the Commission's Rules apply, except that 
satellite DARS operations are limited to a maximum power flux 
density of -197 dB(W/m2/4 kHz) in the 2370-2390 MHz band at 
Arecibo, Puerto Rico.

    74. In addition, the Commission believes it desirable to permit WCS 
and satellite DARS licensees to voluntarily negotiate different limits 
if they so choose. For example, a WCS licensee could negotiate an 
agreement with a satellite DARS licensee that would permit the former 
greater out-of-band emissions in exchange for monetary compensation, or 
vice versa. If WCS and satellite DARS licensees negotiate different 
limits, then the Commission will require that the parties to the 
agreement maintain this information as part of their station files and 
disclose it to prospective assignees or transferees.
    75. The Commission also agrees with the commenting parties that 
some in-band technical limits are needed between adjacent WCS channel 
block operations in order to facilitate spectrum sharing. Accordingly, 
the Commission is adopting an in-band emission limit that will require 
WCS licensees to attenuate their signals by at least 43 + 10 log (p) at 
the edge of their block, except between commonly held channel blocks 
(which require no attenuation). The Commission notes that an 
attenuation of 43 dB is commonly employed in other services and that it 
has been found there to adequately prevent adjacent channel 
interference. See 47 CFR 22.359(iii), 22.917(e), and 24.238. 
Furthermore, the Commission believes that the adoption of a minimum 
adjacent block attenuation value of 43 dB--coupled with the median 
field strength of 47 dBuV/m at any location on the border of a WCS 
service area--is the least intrusive regulation possible that will 
minimize harmful interference.
viii. International Coordination
    76. In the NPRM the Commission stated that until international 
agreements are completed WCS operations will be required to protect 
existing non-U.S. operations in the 2305-2320 and 2345-2360 MHz bands 
and WCS operations in the border areas would be subject to coordination 
with those countries, as appropriate. In addition, the Commission noted 
that satellite DARS operations on WCS spectrum would be subject to 
international satellite coordination procedures. The Commission stated 
that parties should be aware that international coordination could be a 
complex and lengthy process and could vary significantly depending upon 
the types of WCS services that are to be provided. The Commission 
stressed therefore that international coordination requirements should 
be taken into account in developing business plans for the provision of 
WCS and that international coordination would be particularly important 
for parties contemplating the provision of WCS in border areas or the 
provision of satellite DARS operations.
    77. The Commission reiterates that international coordination will 
be required for WCS operations near the United States' borders and, 
depending on the service and its interference potential, may also be 
required for non-border areas. This coordination requirement 
particularly may affect the implementation of satellite DARS operations 
in the 25 MHz of WCS spectrum being allocated to DARS on a co-primary 
basis with other services. Potential satellite DARS applicants should 
consult the February 16, 1996 letter from the FCC Satellite Engineering 
Branch to representatives of the current four satellite DARS applicants 
and responses thereto that address coordination in these bands for 
satellite DARS. These documents are filed in IB Docket No. 95-91, GN 
Docket 90-357, RM No. 8610, PP-24, PP-86, and PP-87. Use of the WCS 
spectrum for DARS services will be governed by the rules and 
regulations that will apply to the exclusive DARS spectrum between 
2320-2345 MHz. These rules are expected to be adopted shortly in a 
Report and Order to be issued in IB Docket No. 95-91. See Establishment 
of Rules and Policies for the Digital Audio Radio Satellite Service in 
the 2310-2360 MHz Frequency Band, IB Docket No. 95-91, GEN Docket No. 
90-357, Notice of Proposed Rule Making, 11 FCC Rcd 1, 60 FR 35166 (July 
6, 1995).
ix. RF Safety
    78. With regard to RF safety requirements, the Commission proposed 
in the NPRM to treat WCS services and devices, operating within the 
2305-2320 MHz and 2345-2360 MHz bands, in a comparable manner to other 
services and devices that have similar operating characteristics. The 
Commission noted that Secs. 1.1307(b), 2.1091 and 2.1093 of our Rules 
list the services and devices for which an environmental evaluation 
must routinely be performed. See 47 CFR 1.1301, 1.1307(b), 2.1091, and 
2.1093. The RF radiation exposure limits are set forth in 47 CFR 
1.1310, 2.1091, and 2.1093, as applicable. Accordingly, the Commission 
proposed that an environmental evaluation for RF exposure would be 
required for the following WCS operations: (1) Transmitting terrestrial 
stations in the satellite DARS service, e.g., ``gap fillers''; (2) 
fixed operations, including base stations and radiolocation, that have 
an effective radiated power (``ERP'') greater than 2000 watts; and (3) 
mobile and portable devices. The Commission invited comment on this 
proposal and requested suggestions for alternatives that would ensure 
public health with respect to exposure to RF radiation.
    79. In the NPRM, the Commission proposed not to limit the output 
power of any WCS transmitter, but to require that WCS transmitters 
comply with our RF exposure limits. The Commission recognizes 
Omnipoint's concerns; however, the Commission notes that it recently 
adopted new, more stringent exposure limits in ET Docket No. 93-62 
which apply to all frequencies between 300 kHz and 100 GHz. See 
Guidelines for Evaluating the Environmental Effects of Radiofrequency 
Radiation, ET Docket No. 93-62, Report and Order, 11 FCC Rcd 15123, 61 
FR 41006 (August 7, 1996). See also First Memorandum Opinion and Order, 
ET Docket No. 93-62, 11 FCC Rcd 17512, 62 FR 3232 (January 22, 1997). 
When adopting these new exposure limits, the Commission considered 
recommendations from, inter alia, the Environmental Protection Agency, 
the Food and Drug Administration, and other federal health and safety 
agencies. Although Omnipoint has raised questions about the power 
threshold below which WCS facilities would be excluded from routinely 
determining compliance with the new exposure limits, the Commission has 
not received information in this proceeding indicating that the new 
exposure limits would not adequately protect public health at WCS 
operating frequencies.

[[Page 9649]]

Because all fixed, mobile, and portable transmitters are required to 
comply with our RF safety rules, as more specifically discussed below, 
the Commission believes that this decision will satisfactorily protect 
public health and should allay Omnipoint's concerns.
    80. Specific to this proceeding, the Commission is requiring 
applicants desiring to use the following types of transmitters to 
perform routine environmental evaluations: (1) Transmitting terrestrial 
stations in the satellite DARS service and fixed operations, including 
base stations and radiolocation transmitters, when the ERP is greater 
than 1000 watts; (2) all portable devices; and (3) mobile devices, if 
the EIRP of the station, in its normal configuration, will be 1.5 watts 
or greater. The Commission has chosen the 1000 W ERP threshold, instead 
of the proposed 2000 watts, because of the flexibility in this service 
with respect to use, power, location, and other factors, and we believe 
that this power limit is appropriate for most exposure situations. This 
approach is consistent with the Commission's existing rules for 
transmitters and devices of comparable use and similar operating 
frequencies. The Commission will be providing guidance on acceptable 
methods of evaluating compliance with the Commission's exposure limits 
in OET Bulletin 65.
x. WCS Interference to MDS/ITFS
    81. The Multipoint Distribution Service (``MDS'') and the 
Instructional Television Fixed Service (``ITFS'') operate in the 2150-
2162 and 2500-2690 MHz bands. See 47 CFR part 21, subpart K and part 
74, subpart I. After the comment period for this proceeding had closed, 
several parties filed ex parte statements expressing their concern that 
WCS transmissions would interfere with MDS/ITFS receiving 
installations. Specifically, BellSouth states that the receiver/
downconverter (``downconverter'') located at each MDS/ITFS customer's 
home is an inexpensive broadband device that receives all frequencies 
between 2.1 GHz and 2.7 GHz. Thus, BellSouth states that a MDS/ITFS 
downconverter located sufficiently close to a WCS transmitter would 
directly receive WCS signals that would prevent clear reception of MDS/
ITFS signals. Specifically, BellSouth calculates that a WCS transmitter 
that radiates more than 80 watts EIRP and that is located within 300 
feet (91.44 meters) of a MDS/ITFS downconverter would overload the 
downconverter and thus prevent the reception of MDS/ITFS programming 
and information services. In order to counteract this problem, 
BellSouth requests that the Commission limit WCS radiated power to 20 
watts EIRP, unless the WCS licensee obtains an interference consent 
agreement from the existing MDS and ITFS licensees. BellSouth states 
that its proposed limit on WCS power would limit the maximum input to 
MDS/ITFS receivers to 12 decibels below one milliwatt (or -12 dBm), 
thus providing protection against receiver overload.
    82. The Wireless Cable Association asserts that there currently are 
one million analog MDS/ITFS installations and that interference from 
WCS operations could cost $125,000,000 or more to cure. The National 
ITFS Association notes that the Commission has a long standing policy 
of protecting existing operations from interference caused by newly 
authorized services and requests that the Commission address this issue 
in a manner that would allow existing ITFS licensees to use the 
frequencies licensed to them as intended by the Commission.
    83. At this time the Commission will not impose any technical 
restrictions on WCS licensees aimed at protecting the MDS/ITFS 
services. The Commission understands the concerns expressed by the MDS/
ITFS licensees, and appreciates the value of the educational, 
entertainment and other programming provided by these services, 
including competition in the MVPD market. As it has repeatedly stated, 
it is the Commission's desire that these services continue to flourish. 
However, based on the record before us, the Commission is not persuaded 
that the operation of WCS facilities would irreparably harm the MDS and 
ITFS services. Without a clear sense of what particular services WCS 
licensees will provide, and how soon these will be operational, the 
interference impact of WCS operations on MDS/ITFS is unclear. Therefore 
the Commission believes it would be premature at this time to consider 
specific interference protection for MDS/ITFS. The Commission also 
observes that the record on this issue is incomplete in that concerns 
of the MDS/ITFS community were first raised in late filed ex parte 
comments and thus no potential WCS applicants have had an opportunity 
to respond to those comments. The Commission also notes that 
traditional, analog MDS/ITFS downconverters have employed an 
inexpensive design that has minimal frequency selectivity. Thus, even 
though MDS/ITFS is licensed in the 2150-2162 MHz and 2500-2690 MHz 
bands only, their downconverters receive all signals throughout the 
entire 2.1-2.7 GHz band. The Commission is aware that the MDS/ITFS 
industry is converting to newer, more robustly designed downconverters 
that have vastly improved frequency selectivity and would not receive 
WCS signals. Also, the digital downconverters to which the MDS/ITFS 
industry is expected to convert over the next several years are 
expected to be better designed and not subject to overloading from WCS 
signals. The Commission applauds these developments and does not wish 
to impede them. The public is served through the efficient use of 
available spectrum which, in turn, is facilitated by the use of 
receiving technology designed to provide protection from other spectrum 
users in the market. Thus, to the extent that the Commission may in the 
future, based on actual WCS operations, find it necessary to adopt an 
interference rule for WCS, it would protect only those MDS/ITFS 
downconverters installed within a year from the adoption date of this 
Report and Order. After that time, the Commission would expect that 
only more spectrally efficient downconverters would be installed by 
MDS/ITFS licensees. In sum, the Commission concludes that it would be 
improvident to adopt a requirement for WCS licensees to protect MDS/
ITFS operations unless and until it has a more precise understanding 
about the nature and extent of problems that may actually arise.
xi. Field Strength Between Service Areas
    84. In order for licensees to share spectrum along a common border, 
each licensee must decrease its signal level at the border so that, 
while it can provide acceptable communications within its licensed 
service area, its signal level across the border is sufficiently 
reduced to avoid causing interference to the neighboring system. In 
broadband PCS, the Commission adopted a predicted or measured median 
field strength of 47 dBV/m at any location on the border of 
the PCS service area unless the parties agree to a higher field 
strength. In drafting the proposed rules in the NPRM, we had to assume 
one of the service area options that were proposed in text. We assumed 
a nationwide license and thus did not specifically address the issue of 
median field strength between initial service areas. Nevertheless, we 
did specifically propose requiring a maximum median field strength of 
47 dBV/m between those service areas which would be formed 
through geographic partitioning. The Commission shall adopt this same 
47 dBV/m maximum median field strength requirement between all 
service

[[Page 9650]]

areas, unless the parties agree to a different field strength.
xii. Additional Technical Issues
    85. In addition, Sun Microsystems requests that a minimum data rate 
of 5 bits per hertz be required for the WCS bands. Sun Microsystems 
argues that setting the minimum data rate at this high level would 
stimulate new technologies. Sun Microsystems proposes that analog 
transmission on the WCS spectrum be prohibited. Sun Microsystems states 
that each service offering should be tiered in order to allow the 
largest possible number of people to afford its benefits. Sun 
Microsystems requests that high gain directional antenna systems (with 
beamwidths no greater than 2 deg. to 3 deg.) be required for high power 
use and that any omnidirectional antenna be required to use low power 
and 18 to 25 dB gain antennas. Finally, Sun Microsystems suggests that 
orthogonal coding and modulation schemes be permitted in order to allow 
more than one licensee to use the same spectrum simultaneously. No 
party commented on Sun Microsystems' proposals.
    86. The Commission believes that the licensees will have a strong 
incentive to put the spectrum to its best use. There is nothing in the 
record of this proceeding that suggests that prohibiting certain 
technologies or requiring specific technologies is appropriate for the 
WCS. Accordingly, the Commission declines to adopt the technical 
regulations proposed by Sun Microsystems.

E. Auction Procedures

    87. In the NPRM, the Commission proposed an auction design and pre-
auction procedures for the WCS service in accordance with the 
Appropriations Act and the expedited schedule which it imposes. 
Specifically, the Commission proposed to award the WCS licenses through 
competitive bidding and by means of a simultaneous multiple round 
electronic auction. The Commission based this proposal on the need to 
auction the WCS licenses quickly and to promote the efficient use of 
the spectrum. As the Commission noted, the Appropriations Act requires 
it to commence the WCS auction no later than April 15, 1997 and to 
conduct the auction in a manner that ensures that all proceeds are 
deposited into the United States Treasury no later than September 30, 
1997.
i. Competitive Bidding Design
    88. In the NPRM, the Commission proposed to auction licenses to 
offer WCS service in conformity with the general competitive bidding 
rules in part 1, subpart Q of the Commission's Rules and substantially 
consistent with the auctions that have been employed in other wireless 
services. 47 CFR part 1, subpart Q. In addition, the Commission 
proposed certain modifications, addressed infra, to help speed the 
auction process given the deadlines imposed by the Appropriations Act.
    89. The Commission adopts its proposal to employ a single 
simultaneous multiple round auction design for the WCS auction similar 
to that used in the PCS auctions. As the Commission explained in the 
NPRM, multiple round bidding will provide more information to bidders 
about the values of the licenses during the auction than single round 
bidding. With better information, bidders will have less incentive to 
shade their bids downward in order to avoid the ``winner's curse'', 
that is the tendency for the winner to be the bidder who most 
overestimates the value of the item being auctioned. The Commission 
also believes that multiple round bidding is likely to be fairer than 
single round bidding as every bidder will have the opportunity to win a 
license if it is willing to pay the most for it. Finally, as the 
Commission stated in the NPRM, a single simultaneous auction will 
facilitate any aggregation strategies that bidders may have and will 
provide the most information to bidders about license values at a time 
that they can best put that information to use.
    90. In addition, the Commission adopts its proposal to require 
bidding for WCS licenses by electronic means only. As the Commission 
indicated in the NPRM, this decision is based on the belief that while 
oral outcry auctions can be simple and rapid, it is not possible to 
auction multiple licenses simultaneously in an oral auction. The 
Commission also notes that because of the potentially large value of 
the WCS licenses, an electronic multiple round auction will be 
preferable because it will permit bidders time between rounds to confer 
with principals and reassess their valuation models and bidding 
strategies. The Commission also adopts its proposal to require that 
bidders submit their bids electronically, rather than by telephone. 
Given the time constraints imposed by the Appropriations Act, as well 
as the recent improvements in our electronic bidding software, the 
Commission believes that telephonic bidding should be permitted only 
under exceptional circumstances, to be determined by the Wireless 
Telecommunications Bureau. Finally, the Commission delegates to the 
Wireless Telecommunications Bureau the discretion to determine whether 
bidding for the WCS auction will be remote or on-site.
ii. Bidding Procedures 
    91. In the NPRM, the Commission tentatively concluded that the WCS 
auction should follow the general competitive bidding procedures of 
part 1, subpart Q of the Commission's rules. See 47 CFR part 1, subpart 
Q. In addition, the Commission proposed to adopt specific provisions 
regarding certain bidding-related issues. Finally, the Commission asked 
interested parties to suggest the appropriate level of a minimum 
opening bid for the WCS license or licenses.
    92. The Commission adopts the bidding procedures proposed in the 
NPRM. The WCS auction will be conducted using the general bidding 
procedures set forth in part 1, subpart Q of the Commission's rules, 
with some minor modifications designed to speed the auction in order to 
comply with the time constraints imposed by the Appropriations Act. 
Specifically, the Commission delegates to the Wireless 
Telecommunications Bureau the discretion to establish a minimum opening 
bid for the WCS licenses and to announce the minimum opening bid by 
public notice. As the Commission stated in the NPRM, a minimum opening 
bid will cause bidders to start bidding at a substantial fraction of 
the final price of the license or licenses, thus ensuring that the 
auction proceeds quickly and increasing the likelihood that the public 
receives fair market value for the license or licenses. In keeping with 
its obligation under the Appropriations Act to ensure that the auction 
proceed rapidly, the Commission also delegates to the Wireless 
Telecommunications Bureau the discretion to establish, raise and lower 
minimum bid increments in the course of the auction. See 47 CFR 
1.2104(d). Finally, the Commission concludes that where a tie bid 
occurs, the high bidder will be determined by the order in which the 
bids were received by the Commission.
iii. Procedural and Payment Issues
    93. In the NPRM, the Commission tentatively concluded that, with 
certain proposed modifications, subpart Q of part 1 of the Commission's 
rules establishing procedural and payment rules for FCC auctions 
generally should apply to the WCS auction. Only one commenter addressed 
these issues. DigiVox contends that to effectively compete in the 
auctions, many parties (especially small businesses) will need 90 days 
from the release of the final rules before FCC Forms 175 are due in

[[Page 9651]]

order to finalize their business plans. DigiVox proposes a schedule 
that includes commencing the auction on May 2, 1997. As the Commission 
recognized in the NPRM, the Appropriations Act requires that the 
Commission ``shall commence the competitive bidding'' for WCS licenses 
no later than April 15, 1997. Although DigiVox urges an interpretation 
of this requirement that would allow applicants to submit their short-
form applications on that date, the Commission concludes that the 
statute clearly requires that ``bidding'' commence on April 15, 1997. 
The Commission therefore will commence the WCS auction on April 15, 
1997, and the auction will be conducted in substantial conformity with 
subpart Q of part 1 of the Commission's Rules. The Commission also 
adopts general rules regarding application and licensing procedures. 
See subpart E of new part 27.
    94. Pre-Auction Application Procedures. In the NPRM, the Commission 
proposed that WCS applicants be required to file a short-form 
application (FCC Form 175) prior to the auction. See 47 CFR 1.2105(a). 
In addition, the Commission tentatively concluded that the Commission 
should require electronic filing of all applications for this auction. 
The Commission received no comments addressing this issue, and will 
implement this proposal. Each bidder in the WCS auction must submit a 
short-form application (FCC Form 175) by means of electronic filing. As 
the Commission stated in the NPRM, the Commission believes that 
electronic filing of applications will serve the best interests of 
auction participants as well as ensure that the WCS auction will be 
completed within the time frame mandated under the Appropriations Act. 
The Commission has developed user-friendly electronic filing software 
and Internet World Wide Web forms to give applicants the ability to 
easily and inexpensively file and review applications. In addition, the 
Commission believes that in light of the legislative deadline of April 
15, 1997 for commencement of this auction, requiring electronic filing 
will be helpful to applicants as well as the Commission. By shortening 
the time required for the Commission to process applications before the 
auction, electronic filing will increase the lead time available to 
applicants to finalize their business plans and arrange necessary 
financing before the short-form filing deadline.
    95. The Commission also proposed in the NPRM that an applicant's 
electronic submission of FCC Form 175 include a certification that the 
applicant is not in default on any Commission licenses and that it is 
not delinquent on any extension of credit from any federal agency. No 
commenters addressed this issue. The Commission therefore adopts this 
certification requirement for the WCS auction. As the Commission stated 
in the NPRM, a certification regarding defaulted licenses and 
delinquent payments to federal agencies will enable us to better 
evaluate the financial qualifications of potential bidders, because it 
will allow us to determine whether any bidder may later be subject to a 
monetary judgment or collection procedures that may impair its 
financial ability to provide service. In the Second Report and Order, 
we decided that we should require sufficient information on the short-
form application to make a determination that ``the application is not 
in violation of Commission Rules and that applications not meeting 
those requirements may be dismissed prior to the competitive bidding.'' 
Implementation of Section 309(i) of the Communications Act--Competitive 
Bidding, PP Docket No. 93-253, Second Report and Order, 59 FR 22980 
(May 4, 1994) (``Second Report and Order''). Part of this documentation 
necessarily includes certification that the bidder has the legal, 
technical, financial, and other qualifications to bid in the auction.
    96. Upfront Payment Amount. The Commission's Part 1 Rules require 
the submission of an upfront payment as a prerequisite to participation 
in spectrum auctions. See 47 CFR 1.2106. In the NPRM, the Commission 
proposed to set the amount of the WCS upfront payment based on the 
general formula the Commission adopted in the Second Report and Order 
of $.02 per megahertz per population. In addition to seeking comment on 
this proposal, the Commission asked commenters to suggest alternative 
methods of establishing an upfront payment, and in particular, how the 
Commission may estimate the value of the spectrum to be auctioned. The 
Commission received no comments or alternative suggestions on this 
issue, and will therefore adopt the proposed upfront payment for the 
WCS auction. Given that a range of services may be provided on WCS 
spectrum, it is difficult to estimate the value of this spectrum. The 
Commission believes, however, that a $.02 per megahertz per population 
upfront payment will serve the twin purposes of upfront payments--to 
deter insincere bidding and to provide the Commission with a source of 
funds to satisfy any bid withdrawal or default payments--without being 
so high as to discourage participation in the WCS auction.
    97. Procedure For Upfront Payment. The Commission also proposed to 
require bidders to deposit their upfront payments in the Commission's 
lock-box bank by wire transfer only by a date to be announced by public 
notice. No commenters addressed this issue. The Commission therefore 
adopts the requirement that bidders in the WCS auction deposit their 
upfront payment by wire transfer only. Although in the past the 
Commission has permitted payment by cashier's check, the Commission 
believes that requiring payment by wire transfer will benefit bidders 
by streamlining and expediting the administration of the auction. As 
the Commission noted in the NPRM, the Commission's experience has shown 
that verification of payments remitted by cashier's check is time-
consuming and cumbersome, and requires the allotment of extra 
processing time prior to the start of the auction. Permitting payment 
by cashier's check would require that upfront payments be made at an 
earlier point, which would decrease applicants' lead time to pursue 
business plans and arrange necessary financing before the start of the 
auction. In addition, given the large number of financial institutions 
offering wire transfer services, a requirement that bidders remit their 
upfront payments by wire transfer will result in minimal, if any, extra 
cost to auction applicants. Such a cost is far outweighed by the 
benefit of speeding the auction process through quicker verification of 
payments.
    98. Down Payment and Full Payment. In the NPRM, the Commission 
tentatively concluded that to help ensure that auction winners are able 
to pay the full amount of their bids, every winning bidder in the WCS 
auction would be required to tender a down payment sufficient to bring 
its total amount on deposit with the Commission up to 20 percent of its 
winning bid. See 47 CFR 1.2107(b). No commenters addressed this issue. 
The Commission therefore concludes that a down payment equal to 20 
percent of each high bidder's total winning bids will be due within 10 
business days after the issuance of a public notice announcing the 
winning bidder for each WCS license.
    99. The Commission also proposed that a winning bidder that makes 
its down payment in a timely manner be required to file an FCC Form 600 
long-form application and follow the long-form application procedures 
in Sec. 1.2107. See 47 CFR 1.2107. The Commission proposed that after 
reviewing the

[[Page 9652]]

winning bidder's long-form application, and after verifying receipt of 
the winning bidder's 20 percent down payment, the Commission would 
announce the application's acceptance for filing, thus triggering the 
filing window for petitions to deny. The Commission also noted that 
given the abbreviated auction schedule contemplated by the 
Appropriations Act, a condensed schedule for the filing of petitions to 
deny would apply for the WCS auction. No commenters addressed this 
issue. The Commission therefore adopts these proposals governing long-
form application procedures. Winning bidders that have made the 
necessary down payment will be required to file a modified FCC Form 600 
that has been updated to provide for the Commission's decision to 
permit flexibility in terms of permissible uses. Finally, the 
Appropriations Act provides that no application for a WCS authorization 
may be granted earlier than seven (7) days following public notice of 
the acceptance for filing of such an application, and that parties will 
have no less than five (5) days following such public notice to file a 
petition to deny. See Appropriations Act, section 3001(c). The 
Commission will therefore afford parties five (5) days to file a 
response to any petition to deny. If, pursuant to Section 309(d) of the 
Communications Act, the Commission dismisses or denies any and all 
petitions to deny, the Commission will announce by public notice that 
it is prepared to award a license and the winning bidder will then have 
ten (10) business days to submit the balance of its winning bid. If the 
bidder does so, the license will be granted. If the bidder fails to 
submit the required down payment or the balance of the winning bid or 
the license is otherwise denied, the Commission will assess a default 
payment as discussed infra.
    100. Amendments and Modifications of Applications. In the NPRM, the 
Commission stated that to encourage maximum bidder participation, 
applicants should be permitted to amend or modify their short-form 
applications as provided in Sec. 1.2105. 47 CFR 1.2105. The Commission 
also noted that in the broadband PCS context, the Commission modified 
its rules to permit ownership changes that result when consortium 
investors drop out of bidding consortia, even if control of the 
consortium changes due to this restructuring. No commenters addressed 
this issue. The Commission therefore adopts the same exception to its 
rules prohibiting major amendments in the WCS auction.
    101. Bid Withdrawal, Default and Disqualification. In the NPRM, the 
Commission tentatively concluded that the withdrawal, default, and 
disqualification rules for the WCS auction would be based upon the 
procedures established in the Commission's general competitive bidding 
rules. With regard to bids which are submitted in error, the Commission 
proposed to apply the guidelines which it recently fashioned to provide 
for relief from the bid withdrawal payment requirements under certain 
circumstances. See Atlanta Trunking Associates, Inc. and MAP Wireless 
L.L.C. Requests to Waive Bid Withdrawal Payment Provisions, Order 11 
FCC Rcd 17189, 61 FR 25807 (May 23, 1996), recon. pending. See also 
Georgia Independent PCS Corporation Request to Waive Bid Withdrawal 
Payment Provision, Order, 11 FCC Rcd 13728, 61 FR 25810 (May 23, 1996), 
app. rev. pending. No commenters addressed this issue. We therefore 
adopt these provisions governing bid withdrawal, default and 
disqualification for the WCS auction.
iv. Anti-Collusion Rules
    102. In the NPRM, the Commission tentatively concluded that the 
anti-collusion rules which the Commission adopted in the Second Report 
and Order, and which are codified at 47 CFR 1.2105, should apply to the 
WCS auction. The Commission received no comments addressing the issue 
of collusion. The Commission has therefore determined that these rules 
prohibiting collusive conduct will apply to the WCS auction.
v. Treatment of Designated Entities
    103. Race- and gender-based classifications must meet exacting 
standards of judicial review. In Adarand Constructors v. Pena, 115 
S.Ct. 2097 (1995) (``Adarand'') the Supreme Court held that all racial 
classifications, whether imposed at the federal, state or local 
government level, must be analyzed by a reviewing court under a strict 
scrutiny standard of review. This standard requires such 
classifications to be narrowly tailored to further a compelling 
governmental interest. Adarand, 115 S. Ct. at 2113. In United States v. 
Virginia, 116 S.Ct. 2264 (June 26, 1996) (``VMI'') the Supreme Court 
reviewed a state program containing gender classification and held it 
was unconstitutional under an intermediate scrutiny standard of review. 
This standard requires that ``[p]arties who seek to defend gender-based 
government action must demonstrate an `exceedingly persuasive 
justification' for that action.'' VMI, 116 S. Ct. at 2274 (citing 
J.E.B. v. Alabama ex rel. T. B., 511 U.S. 127, 136-37 and n. 6 (1994) 
and Mississippi Univ. for Women v. Hogan, 458 U.S. 718, 724 (1982)). 
Under this test, the government must show ``at least that the 
(challenged) classification serves `important governmental objectives 
and that the discriminatory means employed' are `substantially related 
to the achievement of those objectives.' '' Id. at 2275 (quoting 
Mississippi Univ. for Women v. Hogan, 458 U.S. at 724 (quoting Wengler 
v. Druggists Mutual Ins. Co., 446 U.S. 142, 150 (1980))). While the 
Supreme Court has not directly addressed constitutional challenges to 
federal gender-based programs since Adarand and VMI, the Commission's 
review of the relevant broad language in VMI indicates that the Court 
does not differentiate between federal and state official actions in 
its equal protection analysis. Similarly, the Adarand decision 
definitively eliminated any distinction between federal and state race-
based programs in setting its strict scrutiny standard of judicial 
review. Adarand, 115 S. Ct. at 2113. Therefore, the Commission 
concludes that any gender-based preference maintained in the WCS 
auction rules would need to meet the VMI intermediate scrutiny standard 
of review.
    104. The Commission believes that the record in this proceeding is 
insufficient to support race- and gender-based provisions that would 
survive judicial scrutiny. Moreover, adopting race- and gender-based 
provisions unsupported by a substantial record would disserve the 
public interest because it might result in litigation that could 
further delay the conduct of the auction and the award of WCS licenses, 
and postpone the introduction of new competition to the marketplace. 
The Commission therefore concludes that it should not adopt special 
auction provisions that are race- and gender-based.
    105. While the Commission declines to establish race- and gender-
based provisions for the WCS auction rules, the Commission will adopt 
provisions for small businesses, as suggested by several commenters. 
The Commission notes that nothing in the Adarand or VMI decisions calls 
the Commission's small business provisions into question. Moreover, by 
retaining small business preferences, the Commission believes that it 
fulfill its mandate under section 309(j) to provide increased 
opportunities for minority- and women-owned businesses, 47 U.S.C. 
309(j)(3),

[[Page 9653]]

because many minority- and women-owned entities are small businesses 
who therefore will qualify for the same special provisions that would 
have applied to them under the previous rules.
    106. The Commission also has initiated a comprehensive rule making 
proceeding to gather evidence regarding market barriers to entry faced 
by small businesses as well as minority- and women-owned firms. See 
Section 257 Proceeding to Identify and Eliminate Market Entry Barriers 
for Small Businesses, GN Docket No. 96-113, Notice of Inquiry, 11 FCC 
Rcd 6280, 61 FR 33066 (June 26, 1996). If a sufficient record is 
adduced that will support race- and gender-based provisions that will 
satisfy judicial scrutiny, the Commission will consider race- and 
gender-based provisions for future auctions. Toward this end, the 
Commission will continue to request bidder information on the WCS 
short-form filings as to minority- or women-owned status. In its 
analysis of the applicant pool and the auction results, the Commission 
will monitor whether it has accomplished substantial participation by 
minorities and women through the broad provisions available to small 
businesses. This will also assist the Commission in preparing its 
report to Congress on the success of designated entities in auctions. 
See 47 U.S.C. 309(j)(12)(D).
i. Special Provisions for Designated Entities

 A. Bidding Credits

    107. The Commission will adopt bidding credits for small businesses 
and will adopt a tiered bidding credit approach, as supported by 
several commenters. The Commission agrees with commenters that the 
availability of bidding credits is consistent with the Commission's 
obligations under section 309(j) to promote economic opportunity for a 
wide variety of applicants, including small businesses and businesses 
owned by minorities and women. The Commission believes that a tiered 
approach, which enhances the discounting effect of bidding credits 
because not all entities receive the same benefit, will encourage 
smaller businesses to participate in the provision of WCS services. As 
for the level of the credits, the Commission believes that bidding 
credits of 25 percent for small businesses and 35 percent for very 
small businesses are appropriate. These levels reflect the thresholds 
used in the broadband PCS auctions with a reasonable adjustment for the 
unavailability of installment payment plans for WCS licensees. It is 
difficult to accurately calculate the net present value of an 
installment program (which would depend on several variables including 
future commercial interest rates), and the Commission therefore is 
adjusting the broadband PCS bidding credit levels upward by ten 
percentage points. The Commission believes that this tiered bidding 
credit approach and 10 percent adjustment are reasonable and consistent 
with the comments. These credits are narrowly tailored to the varying 
abilities of businesses to access capital and also take into account 
that different small businesses will pursue different strategies.

B. Definition of Small Business

    108. Consistent with the suggestions of many of the commenters, the 
Commission will generally employ the small business definitions and 
standards used in broadband PCS, which the Commission believes have the 
advantages of ready availability and familiarity to many small 
businesses that might be interested in this spectrum. The Commission 
will therefore define a ``small business'' as an entity with average 
gross revenues not exceeding $40 million for each of the preceding 
three years, and a ``very small business'' as an entity with average 
gross revenues not exceeding $15 million in each of the preceding three 
years. The Commission declines to adopt the higher revenue standard 
suggested by Vanguard because it does not believe that Congress, in 
enacting section 309(j), intended for firms with $500 million in 
revenue to be regarded as ``small''. Furthermore, adopting Vanguard's 
suggested standard would create severe disparities between ``small 
businesses'' in terms of capitalization and access to financing.
    109. In determining whether an entity qualifies as a small business 
at either threshold, the Commission will consider the gross revenues of 
the applicant, its affiliates, and certain investors in the applicant. 
Specifically, the Commission will attribute the gross revenues of all 
controlling principals in the applicant as well as the gross revenues 
of affiliates of the applicant. Consistent with broadband PCS rules, 
the Commission will apply two notable exceptions to these attribution 
rules. First, the Commission determines that personal net worth is not 
included in the determination of eligibility for bidding as a small 
business. Second, the Commission agrees with CIRI that entities owned 
by Alaska Native Corporations and Indian Tribes are exempt from 
affiliation for purposes of determining eligibility of applicants for 
bidding credits, because of the general lack of availability of 
revenues from such entities for purposes of participation in WCS. This 
exception is consistent with treatment afforded such entities by the 
Small Business Administration's 8(a) program, See 13 CFR 
124.112(c)(2)(iii), and as the Commission previously has determined, it 
does not believe such a provision to be affected by Adarand.
    110. The Commission declines, however, to employ the specific 
control group equity requirements that the Commission adopted for 
broadband PCS, because the time frame for the conduct of the WCS 
auction is likely to be too short to allow for the creation of the type 
of complex financial relationships as arose in the broadband PCS 
context. Instead, the Commission will simply define the term 
``control'' to include both de jure and de facto control of the 
applicant. However, the Commission will still require that, in order 
for an applicant to qualify as a small business, qualifying small 
business principals must maintain ``control'' of the applicant. The 
Commission also notes that while it is not imposing specific equity 
requirements on the small business principals, the absence of 
significant equity could raise questions about whether the applicant 
qualifies as a bona fide small business.

C. Unjust Enrichment

    111. The Commission agrees with CIRI on the employment of an unjust 
enrichment restriction on the transfer of licenses acquired by small 
businesses, similar to that set forth in 47 CFR 24.839(d), which the 
Commission believes is necessary to ensure that meaningful small 
business participation is not thwarted by transfers of licenses to non-
designated entities. To permit otherwise would severely impede the 
meaningful participation of designated entities because bidders could 
participate as small businesses with the intention not of providing 
service but only of profiting from the difference in the discounted 
auction price and the worth of the license on the resale market. To 
prevent unjust enrichment by small businesses transferring licenses 
acquired through the use of bidding credits, the Commission imposes a 
payment requirement on transfers of such licenses to entities that are 
not owned by small businesses. The Commission believes it is 
appropriate to conform our unjust enrichment rules for WCS to the 
broadband PCS unjust enrichment rules as they relate to bidding 
credits. These rules provide

[[Page 9654]]

that, during the initial license term, licensees utilizing bidding 
credits and seeking to assign or transfer control of a license to an 
entity that does not meet the eligibility criteria for bidding credits 
will be required to reimburse the government for the amount of the 
bidding credit before the transfer will be permitted. 47 CFR 
24.716(d)(1). Additionally, the rules which the Commission now adopts 
provide that if, within the original term, a licensee applies to assign 
or transfer control of a license to an entity that is eligible for a 
lower bidding credit, the difference between the bidding credit 
obtained by the assigning party and the bidding credit for which the 
acquiring party would qualify must be paid to the United States 
Treasury as a condition of approval of the assignment or transfer. 47 
CFR 24.716(d)(2). See also 47 CFR 1.2111. These provisions also will 
apply to WCS licensees who partition or disaggregate their licenses.
    112. If a licensee that utilizes bidding credits seeks to make any 
change in ownership structure that would render the licensee ineligible 
for bidding credits, or eligible only for a lower bidding credit, the 
licensee must first seek Commission approval and reimburse the 
government for the amount of the bidding credit, or the difference 
between its original bidding credit and the bidding credit for which it 
is eligible after the ownership change, plus interest based on the rate 
for ten year U.S. Treasury obligations applicable on the date the 
license is granted. Additionally, if an investor subsequently purchases 
an interest in the business and, as a result, the gross revenues of the 
business exceed the applicable financial caps, this unjust enrichment 
provision will apply.
    113. The amount of this payment will be reduced over time as 
follows: (1) A transfer in the first five years of the license term 
will result in a forfeiture of 100 percent of the value of the bidding 
credit (or, in the case of very small businesses transferring to small 
businesses, 100 percent of the difference between the bidding credit 
received by the former and the bidding credit for which the latter is 
eligible); (2) in year six of the license term the payment will be 80 
percent; (3) in year seven the payment will be 60 percent; in year 
eight the payment will be 40 percent; and in year nine the payment will 
be 20 percent, after which there will be no required payment. These 
assessments will have to be paid to the U.S. Treasury as a condition of 
approval of the assignment, transfer, or ownership change.

D. Other Matters

    114. Based upon the record in this proceeding, the Commission has 
determined that special provisions for rural telcos are not warranted. 
However, rural telcos can take advantage of the geographic partitioning 
and spectrum disaggregation provisions which the Commission adopts, and 
those rural telcos that qualify as small or very small businesses may 
take advantage of the Commission's tiered bidding credits. In addition, 
the Commission declines to afford an additional bidding credit, as 
suggested by DigiVox, to small businesses bidding in areas in which 
they hold no CMRS licenses. The Commission believes that such 
preferences might discourage small businesses from acquiring WCS 
spectrum as supplemental for CMRS services already offered in that 
geographic license area, which would run counter to our goal of 
flexible use. The Commission also declines to adopt any limit on the 
total number of WCS licenses for which an entity may take advantage of 
small business bidding credits. The Commission does not regard such 
limitation as necessary and generally believes that, absent a strong 
justification to do otherwise, the auction process should be permitted 
to work without constraint to allow all bidders to express their 
valuations of the licenses up for bid. Finally, the Commission also 
declines to set aside a block of licenses for auction only to 
designated entities because the Commission does not believe such set-
asides to be necessary to ensure opportunities for participation by 
designated entities in light of the substantial bidding credits, as 
well as the partitioning and disaggregation rules the Commission is 
adopting.
    115. The Commission also notes that its decision both to license 
WCS in two 10 MHz blocks and two 5 MHz blocks, and to designate MEA and 
REAG service areas should increase the opportunities for participation 
in WCS by small businesses and other designated entities. These 
decisions will help to ensure that the cost of obtaining WCS spectrum 
remains within reach of a larger number of prospective applicants than 
would be the case were we to offer only one or two licenses in each 
area. In addition, by offering licenses for smaller blocks of spectrum, 
the Commission will enable WCS applicants to acquire only the amount of 
spectrum necessary to implement their particular service plans. Such 
efficiencies directly benefit small businesses who may not be able to 
afford to acquire larger blocks of spectrum. For example, permitting 
bidders to acquire smaller blocks of spectrum will enable small 
businesses that have identified niche markets to focus their bidding 
and avoid paying for more spectrum than they actually need.

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

Rule Changes

    Parts 1, 2, 27, and 97 of title 47 of the Code of Federal 
Regulations are amended as follows:

PART 1--PRACTICE AND PROCEDURE

    1. The authority citation for part 1 continues to read as follows:

    Authority: 47 U.S.C. 151, 154, 303, and 309(j) unless otherwise 
noted.

    2. Section 1.1307 is amended by revising paragraphs (b)(1) and the 
first sentence of paragraph (b)(2) and Table 1 in paragraph (b)(1) is 
amended by adding the entry for the Wireless Communications Service to 
read as follows:


Sec. 1.1307  Actions that may have a significant environmental effect, 
for which Environmental Assessments (EAs) must be prepared.

* * * * *
    (b) * * *
    (1) The exposure limits in Sec. 1.1310 are generally applicable to 
all facilities, operations and transmitters regulated by the 
Commission. However, a determination of compliance with the exposure 
limits in Sec. 1.1310 (routine environmental evaluation), and 
preparation of an EA if the limits are exceeded, is necessary only for 
facilities, operations and transmitters that fall into the categories 
listed in Table 1, or those specified in paragraph (b)(2) of this 
section. All other facilities, operations and transmitters are 
categorically excluded from making such studies or preparing an EA, 
except as indicated in paragraphs (c) and (d) of this section. For 
purposes of Table 1, ``rooftop'' means the roof or otherwise outside, 
topmost level or levels of a building structure that is occupied as a 
workplace or residence and where either workers or the general public 
may have access. The term ``power'' in column 2 of Table 1 refers to 
total operating power of the transmitting operation in question in 
terms of effective radiated power (ERP), equivalent isotropically 
radiated power (EIRP), or peak envelope power (PEP), as defined in 
Sec. 2.1 of this chapter. For the case of the Cellular Radiotelephone 
Service, subpart H of part 22 of this

[[Page 9655]]

chapter; the Personal Communications Service, part 24 of this chapter; 
the Wireless Communications Service, part 27 of this chapter; and 
covered Specialized Mobile Radio Service operations, part 90 of this 
chapter; the phrase ``total power of all channels'' in column 2 of 
Table 1 means the sum of the ERP or EIRP of all co-located 
simultaneously operating transmitters of the facility. When applying 
the criteria of Table 1, radiation in all directions should be 
considered. For the case of transmitting facilities using sectorized 
transmitting antennas, applicants and licensees should apply the 
criteria to all transmitting channels in a given sector, noting that 
for a highly directional antenna there is relatively little 
contribution to ERP or EIRP summation for other directions.

  Table 1.--Transmitters, Facilities and Operations Subject to Routine  
                        Environmental Evaluation                        
------------------------------------------------------------------------
     Service (Title 47 CFR rule part)          Evaluation required if:  
------------------------------------------------------------------------
  *  *  *  *  *  .........................    *  *  *  *  *             
Wireless Communications Service (Part 27).  Total power of all channels 
                                             > 1000 W ERP (1640 W EIRP) 
  *  *  *  *  *  .........................    *  *  *  *  *             
------------------------------------------------------------------------

    (2) Mobile and portable transmitting devices that operate in the 
Cellular Radiotelephone Service, the Personal Communications Services, 
the Satellite Communications Services, the Wireless Communications 
Service, the Maritime Services (ship earth stations only), and covered 
Specialized Mobile Radio Service providers authorized under subpart H 
of part 22, part 24, part 25, part 27, part 80, and part 90 of this 
chapter are subject to routine environmental evaluation for RF exposure 
prior to equipment authorization or use, as specified in Secs. 2.1091 
and 2.1093 of this chapter. * * *
* * * * *

PART 2--FREQUENCY ALLOCATIONS AND RADIO TREATY MATTERS; GENERAL 
RULES AND REGULATIONS

    1. The authority citation for part 2 continues to read as follows:

    Authority: Secs. 4, 302, 303, and 307 of the Communications Act 
of 1934, as amended, 47 U.S.C. 154, 302, 303 and 307, unless 
otherwise noted.

    2. Section 2.106, the Table of Frequency Allocations, is amended as 
follows:
    a. Remove the existing entries for 2300-2450 MHz.
    b. Add entries in numerical order for 2300-2450 MHz.
    c. In the International Footnotes under heading I., add footnotes 
S5.150, S5.282 , S5.393, S5.394, S5.395, and S5.396 in numerical order.
    d. In the International Footnotes under heading II., remove 
footnotes 750B, 751, 751A, and 751B.
    e. Remove United States footnote US253.
    f. Add United States footnotes US338 and US339 in numerical order.
    g. Revise United States footnotes US276 and US328.
    h. Revise Government footnote G2.
    i. Add Government footnotes G120, G123 and G124 in numerical order.
    The revisions and additions read as follows:


Sec. 2.106  Table of Frequency Allocations.

* * * * *

                                                                                                                
                 International table                        United States table          FCC use designators    
----------------------------------------------------------------------------------------------------------------
                                                         Government        Non-                                 
                      Region 2--        Region 3--    ---------------   Government                              
    Region 1--      allocation MHz    allocation MHz                 ---------------     Rule       Special-use 
  allocation MHz                                         Allocation     Allocation     part(s)      frequencies 
                                                            MHz            MHz                                  
(1)                (2)               (3)               (4)            (5)            (6)          (7)           
----------------------------------------------------------------------------------------------------------------
        *                  *                 *               *              *             *              *      
----------------------------------------------------------------------------------------------------------------
2300-2305          2300-2305         2300-2305         2300-2305      2300-2305      ...........  ..............
FIXED              FIXED             FIXED             .............  Amateur        Amateur      ..............
                                                                                      (97)                      
MOBILE             MOBILE            MOBILE            .............  .............  ...........  ..............
Amateur            RADIOLOCATION     RADIOLOCATION     .............  .............  ...........  ..............
Radiolocation      Amateur           Amateur           .............  .............  ...........  ..............
                   S5.394            ................  G123                                                     
----------------------------------------------------------------------------------------------------------------
2305-2310          2305-2310         2305-2310         2305-2310      2305-2310      ...........  ..............
FIXED              FIXED             FIXED             .............  FIXED          WIRELESS     ..............
                                                                                      COMMUNICAT                
                                                                                      IONS (27)                 
MOBILE             MOBILE            MOBILE            .............  MOBILE except  ...........  ..............
                                                                       aeronautical                             
                                                                       mobile                                   
Amateur            RADIOLOCATION     RADIOLOCATION     .............  RADIOLOCATION  Amateur      ..............
                                                                                      (97)                      
Radiolocation      Amateur           Amateur           .............  Amateur        ...........  ..............
                   S5.394            ................  US338 G123     US338                                     
----------------------------------------------------------------------------------------------------------------
2310-2320          2310-2320         2310-2320         2310-2320      2310-2320      ...........  ..............
FIXED              FIXED             FIXED             FIXED          BROADCASTING-  WIRELESS     Digital Audio 
                                                                       -SATELLITE     COMMUNICAT   Radio        
                                                                       US327          IONS (27)    Services     
MOBILE             MOBILE            MOBILE            Mobile US339   MOBILE US339   ...........  ..............
Amateur            RADIOLOCATION     RADIOLOCATION     Radiolocation  RADIOLOCATION  ...........  ..............
                                                        G2                                                      
Radiolocation      Amateur           Amateur           .............  .............  ...........  ..............
                   ................  ................  .............  .............  ...........  ..............

[[Page 9656]]

                                                                                                                
S5.395             S5.393 S5.394     S5.393 S5.396     S5.396 US327   S5.396 US338                              
                    S5.396                              US338 G120                                              
----------------------------------------------------------------------------------------------------------------
2320-2345          2320-2345         2320-2345         2320-2345      2320-2345      ...........  ..............
                                                                       BROADCASTING                             
                                                                       -SATELLITE                               
                                                                       US327                                    
FIXED              FIXED             FIXED             Fixed          .............  ...........  Digital Audio 
                                                                                                   Radio        
                                                                                                   Services     
MOBILE             MOBILE            MOBILE            Mobile US 276  Mobile US 276  ...........  ..............
                                                                       US328                                    
Amateur            RADIOLOCATION     RADIOLOCATION     Radiolocation  .............  ...........  ..............
                                                        G2                                                      
Radiolocation      Amateur           Amateur           .............  .............  ...........  ..............
S5.395             S5.393 S5.394     S5.393 S5.396     S5.396 US327   S5.396                                    
                    S5.396                              US328 G120                                              
----------------------------------------------------------------------------------------------------------------
2345-2360          2345-2360         2345-2360         2345-2360      2345-2360      ...........  Digital Audio 
                                                                       BROADCASTING                Radio        
                                                                       -SATELLITE                  Services     
                                                                       US327                                    
FIXED              FIXED             FIXED             Fixed          FIXED          WIRELESS     ..............
                                                                                      COMMUNICAT                
                                                                                      IONS (27)                 
MOBILE             MOBILE            MOBILE            Mobile US339   MOBILE US339   ...........  ..............
Amateur            RADIOLOCATION     RADIOLOCATION     Radiolocation  RADIOLOCATION  ...........  ..............
                                                        G2                                                      
Radiolocation      Amateur           Amateur           .............  .............  ...........  ..............
                   ................  ................  .............  .............  ...........  ..............
S5.395             S5.393 S5.394     S5.393 S5.396     S5.396 US327   S5.396                                    
                    S5.396                              G120                                                    
----------------------------------------------------------------------------------------------------------------
2360-2390          2360-2390         2360-2390         2360-2390      2360-2390      ...........  ..............
FIXED              FIXED             FIXED             MOBILE US276   MOBILE US276   ...........  ..............
MOBILE             MOBILE            MOBILE            RADIOLOCATION  .............  ...........  ..............
                                                        G2                                                      
Amateur            RADIOLOCATION     RADIOLOCATION     Fixed          .............  ...........  ..............
Radiolocation      Amateur           Amateur           .............  .............  ...........  ..............
                   S5.394            ................  G120                                                     
----------------------------------------------------------------------------------------------------------------
2390-2400          2390-2400         2390-2400         2390-2400      2390-2400      ...........  ..............
FIXED              FIXED             FIXED             .............  AMATEUR        AMATEUR      ..............
                                                                                      (97)                      
MOBILE             MOBILE            MOBILE            .............  .............  Radio        ..............
                                                                                      Frequency                 
                                                                                      Devices                   
                                                                                      (15)                      
Amateur            RADIOLOCATION     RADIOLOCATION     .............  .............  ...........  ..............
Radiolocation      Amateur           Amateur           .............  .............  ...........  ..............
                   S5.394            ................  G122                                                     
----------------------------------------------------------------------------------------------------------------
2400-2402          2400-2402         2400-2402         2400-2402      2400-2402      ...........  ..............
FIXED              FIXED             FIXED             .............  Amateur        Amateur      ..............
                                                                                      (97)                      
MOBILE             MOBILE            MOBILE            .............  .............  ...........  ..............
Amateur            RADIOLOCATION     RADIOLOCATION     .............  .............  ...........  ..............
Radiolocation      Amateur           Amateur           .............  .............  ...........  ..............
S5.150 S5.282      S5.150 S5.282     S5.150 S5.282     S5.150 G123    S5.150 S5.282                             
                    S5.394                                                                                      
----------------------------------------------------------------------------------------------------------------
2402-2417          2402-2417         2402-2417         2402-2417      2402-2417      ...........  ..............
FIXED              FIXED             FIXED             .............  AMATEUR        AMATEUR      ..............
                                                                                      (97)                      
MOBILE             MOBILE            MOBILE            .............  .............  Radio        ..............
                                                                                      Frequency                 
                                                                                      Devices                   
                                                                                      (15)                      
Amateur            RADIOLOCATION     RADIOLOCATION     .............  .............  ...........  ..............
Radiolocation      Amateur           Amateur           .............  .............  ...........  ..............
S5.150 S5.282      S5.150 S5.282     S5.150 S5.282     S5.150 G122    S5.150 S5.282                             
                    S5.394                                                                                      
----------------------------------------------------------------------------------------------------------------
2417-2450          2417-2450         2417-2450         2417-2450      2417-2450      ...........  ..............
FIXED              FIXED             FIXED             Radiolocation  Amateur        Amateur      ..............
                                                        G2                            (97)                      
MOBILE             MOBILE            MOBILE            .............  .............  ...........  ..............
Amateur            RADIOLOCATION     RADIOLOCATION     .............  .............  ...........  ..............
Radiolocation      Amateur           Amateur           .............  .............  ...........  ..............

[[Page 9657]]

                                                                                                                
S5.150 S5.282      S5.150 S5.282     S5.150 S5.282     S5.150 S5.282  S5.150 S5.282                             
                    S5.394                              G124                                                    
----------------------------------------------------------------------------------------------------------------
        *                  *                 *               *              *             *              *      
----------------------------------------------------------------------------------------------------------------

International Footnotes

* * * * *
    I. New ``S'' Numbering Scheme.
* * * * *
S5.150  The following bands:
    13533-13567 kHz (centre frequency 13560 kHz),
    26957-27283 kHz (centre frequency 27120 kHz),
    40.66-40.70 MHz (centre frequency 40.68 MHz),
    902-928 MHz in Region 2 (centre frequency 915 MHz),
    2400-2500 MHz (centre frequency 2450 MHz),
    5725-5875 MHz (centre frequency 5800 MHz), and
    24-24.25 GHz (centre frequency 24.125 GHz)

are also designated for industrial, scientific and medical (ISM) 
applications. Radiocommunication services operating within these bands 
must accept harmful interference which may be caused by these 
applications. ISM equipment operating in these bands is subject to the 
provisions of No. 1815/S15.13.
    S5.282  In the bands 435-438 MHz, 1260-1270 MHz, 2400-2450 MHz, 
3400-3410 MHz (in Regions 2 and 3 only) and 5650-5670 MHz, the amateur-
satellite service may operate subject to not causing harmful 
interference to other services operating in accordance with the Table 
(see No. S5.43). Administrations authorizing such use shall ensure that 
any harmful interference caused by emissions from a station in the 
amateur-satellite service is immediately eliminated in accordance with 
the provisions of No. 2741/S25.11. The use of the bands 1260-1270 MHz 
and 5650-5670 MHz by the amateur-satellite service is limited to the 
Earth-to-space direction.
* * * * *
    S5.393  Additional allocation: in the United States and India, the 
band 2310-2360 MHz is also allocated to the broadcasting-satellite 
service (sound) and complementary terrestrial sound broadcasting 
service on a primary basis. Such use is limited to digital audio 
broadcasting and is subject to the provisions of Resolution 528 (WARC-
92).
    S5.394  In the United States, the use of the band 2300-2390 MHz by 
the aeronautical mobile service for telemetry has priority over other 
uses by the mobile services. In Canada, the use of the band 2300-2483.5 
MHz by the aeronautical mobile service for telemetry has priority over 
other uses by the mobile services.
    S5.395  In France, the use of the band 2310-2360 MHz by the 
aeronautical mobile service for telemetry has priority over other uses 
by the mobile service.
    S5.396  Space stations of the broadcasting-satellite service in the 
band 2310-2360 MHz operating in accordance with No. S5.393 that may 
affect the services to which this band is allocated in other countries 
shall be coordinated and notified in accordance with Resolution 33. 
Complementary terrestrial broadcasting stations shall be subject to 
bilateral coordination with neighboring countries prior to their 
bringing into use.
* * * * *

United States (US) Footnotes

* * * * *
    US276  Except as otherwise provided for herein, use of the bands 
2320-2345 and 2360-2390 MHz by the mobile service is limited to 
aeronautical telemetering and associated telecommand operations for 
flight testing of manned or unmanned aircraft, missiles or major 
components thereof. The following four frequencies are shared on a co-
equal basis by Government and non-Government stations for telemetering 
and associated telecommand operations of expendable and reusable launch 
vehicles whether or not such operations involve flight testing: 2332.5, 
2364.5, 2370.5, and 2382.5 MHz. All other mobile telemetering uses 
shall be secondary to the above uses.
* * * * *
    US328  In the band 2320-2345 MHz, the mobile and radiolocation 
services are allocated on a primary basis until a broadcasting-
satellite (sound) service has been brought into use in such a manner as 
to affect or be affected by the mobile and radiolocation services in 
those service areas. The broadcasting-satellite (sound) service during 
implementation should also take cognizance of the expendable and 
reusable launch vehicle frequency 2332.5 MHz, to minimize the impact on 
this mobile service use to the extent possible.
* * * * *
    US338  In the 2305-2310 MHz band, space-to-Earth operations are 
prohibited. Additionally, in the 2305-2320 MHz band, all Wireless 
Communications Service (WCS) operations within 50 kilometers of 35 deg. 
20'' North Latitude and 116 deg. 53'' West Longitude shall be 
coordinated through the Frequency Assignment Subcommittee of the 
Interdepartment Radio Advisory Committee in order to minimize harmful 
interference to NASA's Goldstone Deep Space facility.
    US339  The bands 2310-2320 and 2345-2360 MHz are also available for 
aeronautical telemetering and associated telecommand operations for 
flight testing of manned or unmanned aircraft, missiles or major 
components thereof on a secondary basis to the Wireless Communications 
Service. The following two frequencies are shared on a co-equal basis 
by Government and non-Government stations for telemetering and 
associated telecommand operations of expendable and re-usable launch 
vehicles whether or not such operations involve flight testing: 2312.5 
and 2352.5 MHz. Other mobile telemetering uses may be provided on a 
non-interference basis to the above uses. The broadcasting-satellite 
(sound) service during implementation should also take cognizance of 
the expendable and reusable launch vehicle frequencies 2312.5 and 
2352.5 MHz, to minimize the impact on this mobile service use to the 
extent possible.
* * * * *

Government Footnotes

* * * * *

[[Page 9658]]

    G2  In the bands 216-225, 420-450 (except as provided by US217), 
890-902, 928-942, 1300-1400, 2310-2390, 2417-2450, 2700-2900, 5650-
5925, and 9000-9200 MHz, the Government radiolocation is limited to the 
military services.
* * * * *
    G120  Development of airborne primary radars in the band 2310-2390 
MHz with peak transmitter power in excess of 250 watts for use in the 
United States is not permitted.
* * * * *
    G123  The bands 2300-2310 and 2400-2402 MHz were identified for 
reallocation, effective August 10, 1995, for exclusive non-Government 
use under Title VI of the Omnibus Budget Reconciliation Act of 1993. 
Effective August 10, 1995, any Government operations in these bands are 
on a non-interference basis to authorized non-Government operations and 
shall not hinder the implementation of any non-Government operations.
    G124  The band 2417-2450 MHz was identified for reallocation, 
effective August 10, 1995, for mixed Government and non-Government use 
under Title VI of the Omnibus Budget Reconciliation Act of 1993.
    3. Section 2.1091 is amended by revising the first sentence in 
paragraph (c) to read as follows:


Sec. 2.1091  Radiofrequency radiation exposure evaluation: mobile and 
unlicensed devices.

* * * * *
    (c) Mobile devices that operate in the Cellular Radiotelephone 
Service, the Personal Communications Services, the Satellite 
Communications Services, the Wireless Communications Service, the 
Maritime Services and the Specialized Mobile Radio Service authorized 
under subpart H of part 22 of this chapter, part 24 of this chapter, 
part 25 of this chapter, part 27 of this chapter, part 80 of this 
chapter (ship earth station devices only) and part 90 of this chapter 
(``covered'' SMR devices only, as defined in the note to Table 1 of 
Sec. 1.1307(b)(1) of this chapter), are subject to routine 
environmental evaluation for RF exposure prior to equipment 
authorization or use if their effective radiated power (ERP) is 1.5 
watts or more. * * *
* * * * *
    4. Section 2.1093 is amended by revising the first sentence of 
paragraph (c) to read as follows:


Sec. 2.1093  Radiofrequency radiation exposure evaluation: portable 
devices.

* * * * *
    (c) Portable devices that operate in the Cellular Radiotelephone 
Service, the Personal Communications Services, the Satellite 
Communications Services, the Wireless Communications Service, the 
Maritime Services and the Specialized Mobile Radio Service authorized 
under subpart H of part 22 of this chapter, part 24 of this chapter, 
part 25 of this chapter, part 27 of this chapter, part 80 of this 
chapter (ship earth station devices only), part 90 of this chapter 
(``covered'' SMR devices only, as defined in the note to Table 1 of 
section 1.1307(b)(1) of this chapter), and portable unlicensed personal 
communication service and millimeter wave devices authorized under 
Sec. 15.253, Sec. 15.255 or subpart D of part 15 of this chapter are 
subject to routine environmental evaluation for RF exposure prior to 
equipment authorization or use. * * *
* * * * *
    5. A new part 27 is added to read as follows:

PART 27--WIRELESS COMMUNICATIONS SERVICE

Subpart A--General Information

Sec.
27.1  Basis and purpose.
27.2  Permissible communications.
27.3  Other applicable rule parts.
27.4  Terms and definitions.
27.5  Frequencies.
27.6  Service areas.

Subpart B--Applications and Licenses

27.11  Initial authorization.
27.12  Eligibility.
27.13  License period.
27.14  Construction requirements; Criteria for comparative renewal 
proceedings.
27.15  Geographic partitioning and spectrum disaggregation.

Subpart C--Technical Standards

27.51  Equipment authorization.
27.52  RF safety.
27.53  Emission limits.
27.54  Frequency stability.
27.55  Field strength limits.
27.56  Antenna structures; air navigation safety.
27.57  International coordination.
27.59  Environmental requirements.
27.61  Quiet zones.
27.63  Disturbance of AM broadcast station antenna patterns.
27.64  Protection from interference.

Subpart D--Competitive Bidding Procedures for WCS

27.201  WCS subject to competitive bidding.
27.202  Competitive bidding mechanisms.
27.203  Withdrawal, default and disqualification payments.
27.204  Bidding application and certification procedures; 
prohibition of collusion.
27.205  Submission of upfront payments.
27.206  Submission of down payment and filing of long-form 
applications.
27.207  Procedures for filing petitions to deny against WCS long-
form applications.
27.208  License grant, denial, default, and disqualification.
27.209  Designated entities; bidding credits; unjust enrichment.
27.210  Definitions.

Subpart E--Application, Licensing, and Processing Rules for WCS

27.301  Authorization required.
27.302  Eligibility.
27.303  Formal and informal applications.
27.304  Filing of WCS applications, fees, and numbers of copies.
27.305  [Reserved].
27.306  Miscellaneous forms.
27.307  General application requirements.
27.308  Technical content of applications.
27.310  Waiver of rules.
27.311  Defective applications.
27.312  Inconsistent or conflicting applications.
27.313  Amendment of applications for Wireless Communications 
Service (other than applications filed on FCC Form 175).
27.314  Application for temporary authorizations.
27.315  Receipt of application; applications in the Wireless 
Communications Service filed on FCC Form 175 and other applications 
in the WCS Service.
27.316  Public notice period.
27.317  Dismissal and return of applications.
27.319  Ownership changes and agreements to amend or to dismiss 
applications or pleadings.
27.320  Opposition to applications.
27.321  Mutually exclusive applications.
27.322  Consideration of applications.
27.323  [Reserved].
27.324  Transfer of control or assignment of station authorization.
27.325  Termination of authorization.

    Authority: 47 U.S.C. 154, 301, 302, 303, 307, 309 and 332, 
unless otherwise noted.

Subpart A--General Information


Sec. 27.1  Basis and purpose.

    This section contains the statutory basis for this part of the 
rules and provides the purpose for which this part is issued.
    (a) Basis. The rules for the Wireless Communications Service (WCS) 
in this part are promulgated under the provisions of the Communications 
Act of 1934, as amended, that vest authority in the Federal 
Communications Commission to regulate radio transmission and to issue 
licenses for radio stations.
    (b) Purpose. This part states the conditions under which the 2305-
2320 MHz and 2345-2360 MHz bands are made available and licensed for 
the provision of WCS.

[[Page 9659]]

    (c) Scope. The rules in this part apply only to stations authorized 
under this part.


Sec. 27.2  Permissible communications.

    Subject to the rules contained herein, fixed, mobile and 
radiolocation services may be provided using the 2305-2320 and 2345-
2360 MHz bands. In addition, satellite digital audio radio service 
(DARS) may be provided using the 2310-2320 and 2345-2360 MHz bands. 
Satellite DARS service shall be provided in manner consistent with part 
25 of this chapter.


Sec. 27.3  Other applicable rule parts.

    Other FCC rule parts applicable to the Wireless Communications 
Service include the following:
    (a) Part 0. This part describes the Commission's organization and 
delegations of authority. Part 0 of this chapter also lists available 
Commission publications, standards and procedures for access to 
Commission records, and location of Commission Field Offices.
    (b) Part 1. This part includes rules of practice and procedure for 
license applications, adjudicatory proceedings, procedures for 
reconsideration and review of the Commission's actions; provisions 
concerning violation notices and forfeiture proceedings; competitive 
bidding procedures; and the environmental requirements that, if 
applicable, must be complied with prior to the initiation of 
construction.
    (c) Part 2. This part contains the Table of Frequency Allocations 
and special requirements in international regulations, recommendations, 
agreements, and treaties. This part also contains standards and 
procedures concerning the marketing and importation of radio frequency 
devices, and for obtaining equipment authorization.
    (d) Part 5. This part contains rules prescribing the manner in 
which parts of the radio frequency spectrum may be made available for 
experimentation.
    (e) Part 17. This part contains requirements for construction, 
marking and lighting of antenna towers.
    (f) Part 25. This part contains the requirements for satellite 
communications, including satellite DARS.
    (g) Part 51. This part contains general duties of 
telecommunications carriers to provide for interconnection with other 
telecommunications carriers.
    (h) Part 68. This part contains technical standards for connection 
of terminal equipment to the telephone network.


Sec. 27.4  Terms and definitions.

    Assigned frequency. The center of the frequency band assigned to a 
station.
    Authorized bandwidth. The maximum width of the band of frequencies 
permitted to be used by a station. This is normally considered to be 
the necessary or occupied bandwidth, whichever is greater.
    Average terrain. The average elevation of terrain between 3 and 16 
kilometers from the antenna site.
    Effective Radiated Power (ERP) (in a given direction). The product 
of the power supplied to the antenna and its gain relative to a half-
wave dipole in a given direction.
    Equivalent Isotropically Radiated Power (EIRP). The product of the 
power supplied to the antenna and the antenna gain in a given direction 
relative to an isotropic antenna.
    Fixed service. A radio communication service between specified 
fixed points.
    Fixed station. A station in the fixed service.
    Land mobile service. A mobile service between base stations and 
land mobile stations, or between land mobile stations.
    Land mobile station. A mobile station in the land mobile service 
capable of surface movement within the geographic limits of a country 
or continent.
    Land station. A station in the mobile service not intended to be 
used while in motion.
    Mobile service. A radio communication service between mobile and 
land stations, or between mobile stations.
    Mobile station. A station in the mobile service intended to be used 
while in motion or during halts at unspecified points.
    National Geodetic Reference System (NGRS). The name given to all 
geodetic control data contained in the National Geodetic Survey (NGS) 
data base. (Source: National Geodetic Survey, U.S. Department of 
Commerce)
    Radiodetermination. The determination of the position, velocity 
and/or other characteristics of an object, or the obtaining of 
information relating to these parameters, by means of the propagation 
properties of radio waves.
    Radiolocation. Radiodetermination used for purposes other than 
those of radionavigation.
    Radionavigation. Radiodetermination used for the purpose of 
navigation, including obstruction warning.
    Satellite Digital Audio Radio Service (satellite DARS). A 
radiocommunication service in which compact disc quality programming is 
digitally transmitted by one or more space stations.
    Wireless communications service. A radiocommunication service that 
encompasses fixed, mobile, satellite DARS, and radiolocation services.


Sec. 27.5  Frequencies.

    The following frequencies are available for WCS.
    (a) Two paired channel blocks are available for assignment on a 
Major Economic Area basis as follows:

Block A: 2305-2310 and 2350-2355 MHz; and
Block B: 2310-2315 and 2355-2360 MHz.

    (b) Two unpaired channel blocks are available for assignment on a 
Regional Economic Area Grouping basis as follows:

Block C: 2315-2320 MHz; and
Block D: 2345-2350 MHz.


Sec. 27.6  Service areas.

    WCS service areas are Major Economic Areas (MEAs) and Regional 
Economic Area Groupings (REAGs) as defined below. Both MEAs and REAGs 
are based on the U.S. Department of Commerce's 172 Economic Areas 
(EAs). See 60 FR 13114 (March 10, 1995). In addition, the Commission 
shall separately license Guam and the Northern Mariana Islands, Puerto 
Rico and the United States Virgin Islands, American Samoa, and the Gulf 
of Mexico, which have been assigned Commission-created EA numbers 173-
176, respectively. Maps of the EAs, MEAs, and REAGs and the Federal 
Register Notice that established the 172 EAs are available for public 
inspection and copying at the Commercial Wireless Division Public 
Reference Room, room 5608, 2025 M Street, NW, Washington, DC.
    (a) The 52 MEAs are composed of one or more EAs and the 12 REAGs 
are composed of one or more MEAs, as defined in the table below:

------------------------------------------------------------------------
            REAGs                     MEAs                   EAs        
------------------------------------------------------------------------
1 (Northeast)...............  1 (Boston)..........  1-3.                
                              2 (New York City)...  4-7, 10.            
                              3 (Buffalo).........  8.                  
                              4 (Philadelphia)....  11-12.              

[[Page 9660]]

                                                                        
2 (Southeast)...............  5 (Washington)......  13-14.              
                              6 (Richmond)........  15-17, 20.          
                              7 (Charlotte-         18-19, 21-26, 41-42,
                               Greensboro-           46.                
                               Greenville-Raleigh).                     
                              8 (Atlanta).........  27-28, 37-40, 43.   
                              9 (Jacksonville)....  29, 35.             
                              10 (Tampa-St.         30, 33-34.          
                               Petersburg-Orlando).                     
                              11 (Miami)..........  31-32.              
3 (Great Lakes).............  12 (Pittsburgh).....  9, 52-53.           
                              13 (Cincinnati-       48-50.              
                               Dayton).                                 
                              14 (Columbus).......  51.                 
                              15 (Cleveland)......  54-55.              
                              16 (Detroit)........  56-58, 61-62.       
                              17 (Milwaukee)......  59-60, 63, 104-105, 
                                                     108.               
                              18 (Chicago)........  64-66, 68, 97, 101. 
                              19 (Indianapolis)...  67.                 
                              20 (Minneapolis-St.   106-107, 109-114,   
                               Paul).                116.               
                              21 (Des Moines-Quad   100, 102-103, 117.  
                               Cities).                                 
4 (Mississippi Valley)......  22 (Knoxville)......  44-45.              
                              23 (Louisville-       47, 69-70, 72.      
                               Lexington-                               
                               Evansville).                             
                              24 (Birmingham).....  36, 74, 78-79.      
                              25 (Nashville)......  71.                 
                              26 (Memphis-Jackson)  73, 75-77.          
                              27 (New Orleans-      80-85.              
                               Baton Rouge).                            
                              28 (Little Rock)....  90-92, 95.          
                              29 (Kansas City)....  93, 99, 123.        
                              30 (St. Louis)......  94, 96, 98.         
5 (Central).................  31 (Houston)........  86-87, 131.         
                              32 (Dallas-Fort       88-89, 127-130, 135,
                               Worth).               137-138.           
                              33 (Denver).........  115, 140-143.       
                              34 (Omaha)..........  118-121.            
                              35 (Wichita)........  122.                
                              36 (Tulsa)..........  124.                
                              37 (Oklahoma City)..  125-126.            
                              38 (San Antonio)....  132-134.            
                              39 (El Paso-          136, 139, 155-157.  
                               Albuquerque).                            
                              40 (Phoenix)........  154, 158-159.       
6 (West)....................  41 (Spokane-          144-147, 168.       
                               Billings).                               
                              42 (Salt Lake City).  148-150, 152.       
                              43 (San Francisco-    151, 162-165.       
                               Oakland-San Jose).                       
                              44 (Los Angeles-San   153, 160-161.       
                               Diego).                                  
                              45 (Portland).......  166-167.            
                              46 (Seattle)........  169-170.            
7 (Alaska)..................  47 (Alaska).........  171.                
8 (Hawaii)..................  48 (Hawaii).........  172.                
9 (Guam and the Northern      49 (Guam and the      173.                
 Mariana Islands).             Northern Mariana                         
                               Islands).                                
10 (Puerto Rico and U.S.      50 (Puerto Rico and   174.                
 Virgin Islands).              U.S. Virgin                              
                               Islands).                                
11 (American Samoa).........  51 (American Samoa).  175.                
12 (Gulf of Mexico).........  52 (Gulf of Mexico).  176.                
------------------------------------------------------------------------

    (b) The Gulf of Mexico EA extends from 12 nautical miles off the 
U.S. Gulf coast outward into the Gulf.

Subpart B--Applications and Licenses


Sec. 27.11  Initial authorization.

    (a) An applicant must file an application for an initial WCS 
authorization in each market and channel block desired. Applicants are 
permitted to list all markets and channel blocks in a single 
application where all requisite exhibits and justifications are 
identical.
    (b) The initial WCS authorizations shall be granted for 10 
megahertz of spectrum in accordance with Sec. 27.5. Authorizations for 
Blocks A and B will be based on Major Economic Areas (MEAs), as shown 
in Sec. 27.6. Authorizations for Blocks C and D will be based on 
Regional Economic Area Groupings (REAGs), as shown in Sec. 27.6. 
Applications for individual sites are not required and will not be 
accepted, except where required for environmental assessments, in 
accordance with Sec. 27.63.


Sec. 27.12  Eligibility.

    Any entity, other than those precluded by section 310 of the 
Communications Act of 1934, as amended, 47 U.S.C. section 310, is 
eligible to hold a license under this part.


Sec. 27.13  License period.

    Initial WCS authorizations will have a term not to exceed ten years 
from the date of original issuance or renewal.


Sec. 27.14  Construction requirements; Criteria for comparative renewal 
proceedings.

    (a) WCS licensees must make a showing of ``substantial service'' in 
their license area within ten years of being licensed. ``Substantial'' 
service is defined as service which is sound, favorable, and 
substantially above a level of mediocre service which just might 
minimally warrant renewal. Failure by any licensee to meet this 
requirement will result in forfeiture of the license and the licensee 
will be ineligible to regain it.
    (b) A renewal applicant involved in a comparative renewal 
proceeding shall receive a preference, commonly referred to as a 
renewal expectancy, which is the most important comparative factor to 
be considered in the proceeding, if its past

[[Page 9661]]

record for the relevant license period demonstrates that:
    (1) The renewal applicant has provided ``substantial'' service 
during its past license term; and
    (2) The renewal applicant has substantially complied with 
applicable FCC rules, policies and the Communications Act of 1934, as 
amended.
    (c) In order to establish its right to a renewal expectancy, a WCS 
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:
    (1) A description of its current service in terms of geographic 
coverage and population served;
    (2) An explanation of its record of expansion, including a 
timetable of new construction to meet changes in demand for service;
    (3) A description of its investments in its WCS system; and
    (4) 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 this 
paragraph.
    (d) 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.


Sec. 27.15  Geographic partitioning and spectrum disaggregation.

    (a) Eligibility. (1) Parties seeking approval for partitioning and 
disaggregation shall request from the Commission an authorization for 
partial assignment of a license pursuant to section 27.324.
    (2) WCS licensees may apply to partition their licensed geographic 
service area or disaggregate their licensed spectrum at any time 
following the grant of their licenses.
    (b) Technical Standards--(1) Partitioning. In the case of 
partitioning, requests for authorization for partial assignment of a 
license must include, as attachments, a description of the partitioned 
service area and a calculation of the population of the partitioned 
service area and the licensed geographic service area. The partitioned 
service area shall be defined by coordinate points at every 3 degrees 
along the partitioned service area unless an FCC recognized service 
area is utilized (i.e., Major Trading Area, Basic Trading Area, 
Metropolitan Service Area, Rural Service Area, Economic Area, or Major 
Economic Area) or county lines are followed. The geographic coordinates 
must be specified in degrees, minutes, and seconds to the nearest 
second of latitude and longitude and must be based upon the 1927 North 
American Datum (NAD27). Applicants may supply geographical coordinates 
based on 1983 North American Datum (NAD83) in addition to those 
required (NAD27). In the case where an FCC recognized service area or 
county lines are utilized, applicants need only list the specific 
area(s) (through use of FCC designations or county names) that 
constitute the partitioned area.
    (2) Disaggregation. Spectrum may be disaggregated in any amount.
    (3) Combined partitioning and disaggregation. The Commission will 
consider requests for partial assignment of licenses that propose 
combinations of partitioning and disaggregation.
    (4) Signal levels. For purposes of partitioning and disaggregation, 
WCS systems must be designed so as not to exceed a signal level of 47 
dByV/m at the licensee's service area boundary, unless the affected 
adjacent service area licensees have agreed to a different signal 
level. See section 27.55.
    (c) Unjust Enrichment.--(1) Bidding credits. Licensees that 
received a bidding credit and partition their licenses or disaggregate 
their spectrum to entities not meeting the eligibility standards for 
such a bidding credit, will be subject to the provisions concerning 
unjust enrichment as set forth in section 27.209(c).
    (2) Apportioning unjust enrichment payments. Unjust enrichment 
payments for partitioned license areas shall be calculated based upon 
the ratio of the population of the partitioned license area to the 
overall population of the license area and by utilizing the most recent 
census data. Unjust enrichment payments for disaggregated spectrum 
shall be calculated based upon the ratio of the amount of spectrum 
disaggregated to the amount of spectrum held by the licensee.
    (d) License term. The license term for a partitioned license area 
and for disaggregated spectrum shall be the remainder of the original 
licensee's license term as provided for in Sec. 27.13.

Subpart C--Technical Standards


Sec. 27.51  Equipment authorization.

    (a) Each transmitter utilized for operation under this part and 
each transmitter marketed, as set forth in Sec. 2.803 of this chapter, 
must be of a type that has been authorized by the Commission under its 
type acceptance procedure.
    (b) The Commission periodically publishes a list of type accepted 
equipment, entitled ``Radio Equipment List, Equipment Accepted for 
Licensing.'' Copies of this list are available for public reference at 
the Commission's offices in Washington, DC, at each of its field 
offices, and may be ordered from its copy contractor.
    (c) Any manufacturer of radio transmitting equipment to be used in 
these services may request equipment authorization following the 
procedures set forth in subpart J of part 2 of this chapter. Equipment 
authorization for an individual transmitter may be requested by an 
applicant for a station authorization by following the procedures set 
forth in part 2 of this chapter. Such equipment if approved or accepted 
will not normally be included in the Commission's Radio Equipment List 
but will be individually enumerated on the station authorization.


Sec. 27.52  RF safety.

    Licensees and manufacturers are subject to the radio frequency 
radiation exposure requirements specified in sections 1.1307(b), 
2.1091, and 2.1093 of this chapter, as appropriate. Applications for 
equipment authorization of mobile or portable devices operating under 
this section must contain a statement confirming compliance with these 
requirements for both fundamental emissions and unwanted emissions. 
Technical information showing the basis for this statement must be 
submitted to the Commission upon request.


Sec. 27.53  Emission limits.

    (a) The power of any emission outside the licensee's bands of 
operation shall be attenuated below the transmitter power (p) within 
the licensed bands of operation by the following amounts:
    (1) For fixed operations, including radiolocation: By a factor not 
less than 80 + 10 log (p) dB on all frequencies between 2320 and 2345 
MHz.
    (2) For mobile operations, including radiolocation: By a factor not 
less than 110 + 10 log (p) dB on all frequencies between 2320 and 2345 
MHz.
    (3) For fixed and mobile operations, including radiolocation: By a 
factor not less than 70 + 10 log (p) dB on all frequencies below 2300 
MHz and on all frequencies above 2370 MHz; and not less than 43 + 10 
log (p) dB on all frequencies between 2300 and 2320 MHz and on all 
frequencies between 2345 and 2370 MHz that are outside the licensed 
bands of operation.

[[Page 9662]]

    (4) For the purposes of this section, radiolocation shall be 
classified as either a fixed or mobile service, depending upon the 
application.
    (5) Compliance with these provisions is based on the use of 
measurement instrumentation employing a resolution bandwidth of 1 MHz 
or less, but at least one percent of the emission bandwidth of the 
fundamental emission of the transmitter, provided the measured energy 
is integrated over a 1 MHz bandwidth.
    (6) In complying with the requirements in Secs. 27.53(a)(1) and 
27.53(a)(2), WCS equipment that uses opposite sense circular 
polarization from that used by satellite DARS systems in the 2320-2345 
MHz band shall be permitted an allowance of 10 dB.
    (7) When measuring the emission limits, the nominal carrier 
frequency shall be adjusted as close to the edges, both upper and 
lower, of the licensee's bands of operation as the design permits.
    (8) The measurements of emission power can be expressed in peak or 
average values, provided they are expressed in the same parameters as 
the transmitter power.
    (9) The above out-of-band emissions limits may be modified by the 
private contractual agreement of the affected licensees, who shall 
maintain a copy of the agreement in their station files and disclose it 
to prospective assignees or transferees or, upon request, to the 
Commission.
    (b) For WCS satellite DARS operations: The limits set forth in 
section 25.202(f) of this chapter apply, except that satellite DARS 
operations are limited to a maximum power flux density of -197 dBW/m2/4 
kHz in the 2370-2390 MHz band at Arecibo, Puerto Rico.
    (c) When an emission outside of the authorized bandwidth causes 
harmful interference, the Commission may, at its discretion, require 
greater attenuation than specified in this section.


Sec. 27.54  Frequency stability.

    The frequency stability shall be sufficient to ensure that the 
fundamental emissions stay within the authorized bands of operation.


Sec. 27.55  Field strength limits.

    The predicted or measured median field strength at any location on 
the border of a WCS service area shall not exceed 47 dBV/m 
unless the parties agree to a different field strength. This value 
applies to both the initially offered MEA and REAG service areas and to 
partitioned service areas.


Sec. 27.56  Antenna structures; air navigation safety.

    A licensee that owns its antenna structure(s) must not allow such 
antenna structure(s) to become a hazard to air navigation. In general, 
antenna structure owners are responsible for registering antenna 
structures with the FCC if required by part 17 of this chapter, and for 
installing and maintaining any required marking and lighting. However, 
in the event of default of this responsibility by an antenna structure 
owner, the FCC permittee or licensee authorized to use an affected 
antenna structure will be held responsible by the FCC for ensuring that 
the antenna structure continues to meet the requirements of part 17 of 
this chapter. See Sec. 17.6 of this chapter.
    (a) Marking and lighting. Antenna structures must be marked, 
lighted and maintained in accordance with part 17 of this chapter and 
all applicable rules and requirements of the Federal Aviation 
Administration. For any construction or alteration that would exceed 
the requirements of section 17.7 of this chapter, licensees must notify 
the appropriate Regional Office of the Federal Aviation Administration 
(FAA Form 7460-1) and file a request for antenna height clearance and 
obstruction marking and lighting specifications (FCC Form 854) with the 
FCC, WTB, 1270 Fairfield Road, Gettysburg, PA 17325.
    (b) Maintenance contracts. Antenna structure owners (or licensees 
and permittees, in the event of default by an antenna structure owner) 
may enter into contracts with other entities to monitor and carry out 
necessary maintenance of antenna structures. Antenna structure owners 
(or licensees and permittees, in the event of default by an antenna 
structure owner) that make such contractual arrangements continue to be 
responsible for the maintenance of antenna structures in regard to air 
navigation safety.


Sec. 27.57  International coordination.

    WCS operations in the border areas shall be subject to coordination 
with those countries and provide protection to non-U.S. operations in 
the 2305-2320 and 2345-2360 MHz bands as appropriate. In addition, 
satellite DARS operations in WCS spectrum shall be subject to 
international satellite coordination procedures.


Sec. 27.59  Environmental requirements.

    WCS operations that may have a significant environmental impact as 
defined by Secs. 1.1301 through 1.1319 of this chapter, must file an 
FCC Form 600 and supply specific technical information about their 
proposed site prior to construction of such site as well as an 
environmental assessment (EA) in accordance with Secs. 1.1301 through 
1.1319 of this chapter. Such application will be placed on public 
notice in accordance with Sec. 27.316 and may not be constructed or 
operated prior to a finding of no significant impact (FONSI) being 
issued and placed on public notice by the FCC.


Sec. 27.61  Quiet zones.

    Quiet zones are those areas where it is necessary to restrict 
radiation so as to minimize possible impact on the operations of radio 
astronomy or other facilities that are highly sensitive to 
interference. The areas involved and procedures required are as 
follows:
    (a) NRAO, NRRO. The requirements of this paragraph are intended to 
minimize possible interference at the National Radio Astronomy 
Observatory site located at Green Bank, Pocahontas County, West 
Virginia, and at the Naval Radio Research Observatory site at Sugar 
Grove, Pendleton County, West Virginia. WCS licensees planning to 
construct and operate a new or modified WCS station at a permanent 
fixed location within the area bounded by N.39 deg.15' on the north, 
W.78 deg.30' on the east, N.37 deg.30' on the south, and W.80 deg.30' 
on the west must notify the Director, National Radio Astronomy 
Observatory, Post Office Box No. 2, Green Bank, WV 24944, in writing, 
of the technical details of the proposed operation. The notification 
must include the geographical coordinates of the antenna location, the 
antenna height, antenna directivity (if any), the channel, the emission 
type and power.
    (b) Table Mountain. The requirements of this paragraph are intended 
to minimize possible interference at the Table Mountain Radio Receiving 
Zone of the Research Laboratories of the U.S. Department of Commerce 
located in Boulder County, Colorado.
    (1) WCS licensees planning to construct and operate a new or 
modified WCS station at a permanent fixed location in the vicinity of 
Boulder County, Colorado are advised to give consideration, prior to 
filing applications, to the need to protect the Table Mountain Radio 
Receiving Zone from interference. To prevent degradation of the present 
ambient radio signal level at the site, the U.S. Department of Commerce 
seeks to ensure that the field strengths of any radiated signals 
(excluding reflected signals) received on this 1800 acre site (in the 
vicinity of coordinates 40 deg.07'50'' North Latitude, 105 deg.14'40'' 
West

[[Page 9663]]

Longitude) resulting from new assignments (other than mobile stations) 
or from the modification or relocation of existing facilities do not 
exceed the values given in Table C-3.

           Table C-3--Field Strength Limits for Table Mountain          
------------------------------------------------------------------------
         Frequency range            Field strength    Power flux density
------------------------------------------------------------------------
890 to 3000 MHz.................  1 mV/m............  -85.8 dBW/m \2\   
------------------------------------------------------------------------
Note: Equivalent values of power flux density are calculated assuming   
  free space characteristic impedance of 376.7 (120). (120).                                                 

    (2) Advance consultation is recommended, particularly for WCS 
licensees that have no reliable data to indicate whether the field 
strength or power flux density figures in the above table would be 
exceeded by their proposed radio facilities. In general, coordination 
is recommended for:
    (i) Stations located within 2.4 kilometers (1.5 miles);
    (ii) Stations located within 4.8 kilometers (3 miles) transmitting 
with 50 watts or more effective radiated power (ERP) in the primary 
plane of polarization in the azimuthal direction of the Table Mountain 
Radio Receiving Zone;
    (iii) Stations located within 16 kilometers (10 miles) transmitting 
with 1 kW or more ERP in the primary plane of polarization in the 
azimuthal direction of Table Mountain Radio Receiving Zone;
    (iv) Stations located within 80 kilometers (50 miles) transmitting 
with 25 kW or more ERP in the primary plane of polarization in the 
azimuthal direction of Table Mountain Receiving Zone.
    (3) WCS licensees are urged to communicate with the Radio Frequency 
Management Coordinator, U.S. Department of Commerce, Research Support 
Services NOAAR/E5X2, Boulder Laboratories, Boulder, CO 80303; telephone 
(303) 497-6548, in advance of construction and operation of such 
facilities.
    (c) Federal Communications Commission protected field offices. The 
requirements of this paragraph are intended to minimize possible 
interference to FCC monitoring activities.
    (1) WCS licensees planning to construct and operate a new or 
modified WCS station at a permanent fixed location in the vicinity of 
an FCC protected field office are advised to give consideration to the 
need to avoid interfering with the monitoring activities of that 
office. FCC protected field offices are listed in Sec. 0.121 of this 
chapter.
    (2) Applications for stations (except mobile stations) that could 
produce on any channel a direct wave fundamental field strength of 
greater than 10 mV/m (-65.8 dBW/m \2\ power flux density assuming a 
free space characteristic impedance of 120) in the 
authorized bandwidth at the protected field office must be examined by 
WCS licensees to determine the potential for interference with 
monitoring activities.
    (3) In the event that the calculated field strength exceeds 10 mV/m 
at the protected field office site, or if there is any question whether 
field strength levels might exceed that level, advance consultation 
with the FCC to discuss possible measures to avoid interference to 
monitoring activities should be considered. WCS licensees may 
communicate with: Chief, Compliance and Information Bureau, Federal 
Communications Commission, Washington, DC 20554.
    (4) Advance consultation is recommended for WCS licensees that have 
no reliable data to indicate whether the field strength or power flux 
density figure indicated would be exceeded by their proposed radio 
facilities. In general, coordination is recommended for:
    (i) Stations located within 2.4 kilometers (1.5 miles);
    (ii) Stations located within 4.8 kilometers (3 miles) with 50 watts 
or more average effective radiated power (ERP) in the primary plane of 
polarization in the azimuthal direction of the protected field offices.
    (iii) Stations located within 16 kilometers (10 miles) with 1 kW or 
more average ERP in the primary plane of polarization in the azimuthal 
direction of the protected field office;
    (iv) Stations located within 80 kilometers (50 miles) with 25 kW or 
more average ERP in the primary plane of polarization in the azimuthal 
direction of the protected field office;
    (5) Advance coordination for stations transmitting on channels 
above 1000 MHz is recommended only if the proposed station is in the 
vicinity of a protected field office designated as a satellite 
monitoring facility in Sec. 0.121 of this chapter.
    (6) The FCC will not screen applications to determine whether 
advance consultation has taken place. However, such consultation may 
serve to avoid the need for later modification of the authorizations of 
stations that interfere with monitoring activities at protected field 
offices.


Sec. 27.63  Disturbance of AM broadcast station antenna patterns.

    WCS licensees that construct or modify towers in the immediate 
vicinity of AM broadcast stations are responsible for measures 
necessary to correct disturbance of the AM station antenna pattern 
which causes operation outside of the radiation parameters specified by 
the FCC for the AM station, if the disturbance occurred as a result of 
such construction or modification.
    (a) Non-directional AM stations. If tower construction or 
modification is planned within 1 kilometer (0.6 mile) of a non-
directional AM broadcast station tower, the WCS licensee must notify 
the licensee of the AM broadcast station in advance of the planned 
construction or modification. Measurements must be made to determine 
whether the construction or modification would affect the AM station 
antenna pattern. The WCS licensee is responsible for the installation 
and continued maintenance of any detuning apparatus necessary to 
restore proper non-directional performance of the AM station tower.
    (b) Directional AM stations. If tower construction or modification 
is planned within 3 kilometers (1.9 miles) of a directional AM 
broadcast station array, the WCS licensee must notify the licensee of 
the AM broadcast station in advance of the planned construction or 
modification. Measurements must be made to determine whether the 
construction or modification would affect the AM station antenna 
pattern. The WCS licensee is responsible for the installation and 
continued maintenance of any detuning apparatus necessary to restore 
proper performance of the AM station array.


Sec. 27.64  Protection from interference.

    Wireless Communications Service (WCS) stations operating in full 
accordance with applicable FCC rules and the terms and conditions of 
their authorizations are normally considered to be non-interfering. If 
the FCC determines, however, that interference which significantly 
interrupts or degrades a radio service is being caused, it may, after 
notice and an opportunity for a hearing, require modifications to any 
WCS station as necessary to eliminate such interference.
    (a) Failure to operate as authorized. Any licensee causing 
interference to the service of other stations by failing to operate its 
station in full accordance with its authorization and applicable FCC 
rules shall discontinue all transmissions, except those necessary for 
the immediate safety of life or property, until it can bring its 
station

[[Page 9664]]

into full compliance with the authorization and rules.
    (b) Intermodulation interference. Licensees should attempt to 
resolve such interference by technical means.
    (c) Situations in which no protection is afforded. Except as 
provided elsewhere in this part, no protection from interference is 
afforded in the following situations:
    (1) Interference to base receivers from base or fixed transmitters. 
Licensees should attempt to resolve such interference by technical 
means or operating arrangements.
    (2) Interference to mobile receivers from mobile transmitters. No 
protection is provided against mobile-to-mobile interference.
    (3) Interference to base receivers from mobile transmitters. No 
protection is provided against mobile-to-base interference.
    (4) Interference to fixed stations. Licensees should attempt to 
resolve such interference by technical means or operating arrangements.
    (5) Anomalous or infrequent propagation modes. No protection is 
provided against interference caused by tropospheric and ionospheric 
propagation of signals.

Subpart D--Competitive Bidding Procedures for WCS


Sec. 27.201  WCS subject to competitive bidding.

    Mutually exclusive initial applications to provide WCS service are 
subject to competitive bidding procedures. The procedures set forth in 
part 1, subpart Q of this chapter will apply unless otherwise specified 
in this part.


Sec. 27.202  Competitive bidding mechanisms.

    In addition to the provisions of Sec. 1.2104(a) through (f), (h) 
and (i) of this chapter, the following provision will apply to WCS: 
Where a tie bid occurs, the high bidder will be determined by the order 
in which the bids were received by the Commission.


Sec. 27.203  Withdrawal, default and disqualification payments.

    When the Commission conducts a simultaneous multiple round auction 
pursuant to Sec. 27.202, the Commission will impose payments on bidders 
who withdraw high bids during the course of an auction, or who default 
on payments due after an auction closes or who are disqualified. When 
the amount of such a payment cannot be determined, a deposit of up to 
20 percent of the amount bid on the license will be required.
    (a) Bid withdrawal prior to close of auction. A bidder who 
withdraws a high bid during the course of an auction will be subject to 
a payment equal to the difference between the amount bid and the amount 
of the winning bid the next time the license is offered by the 
Commission. No withdrawal payment would be assessed if the subsequent 
winning bid exceeds the withdrawn bid. This payment amount will be 
deducted from any upfront payments or down payments that the 
withdrawing bidder has deposited with the Commission.
    (b) Default or disqualification after close of auction. If a high 
bidder defaults or is disqualified after the close of such an auction, 
the defaulting bidder will be subject to the payment in paragraph (a) 
of this section plus an additional payment equal to 3 percent of the 
subsequent winning bid. If the subsequent winning bid exceeds the 
defaulting bidder's bid amount, the 3 percent payment will be 
calculated based on the defaulting bidder's bid amount. These amounts 
will be deducted from any upfront payments or down payments that the 
defaulting or disqualified bidder has deposited with the Commission.


Sec. 27.204  Bidding application and certification procedures; 
prohibition of collusion.

    (a) Submission of Short-Form Application (FCC Form 175). In order 
to be eligible to bid, an applicant must timely submit, by means of 
electronic filing, a short-form application (FCC Form 175). Unless 
otherwise provided by public notice, the Form 175 need not be 
accompanied by an upfront payment (see Sec. 27.205).
    (1) All Form 175s will be due on the date specified by public 
notice.
    (2) The Form 175 must contain the following information:
    (i) Identification of each license on which the applicant wishes to 
bid;
    (ii) The applicant's name, if the applicant is an individual. If 
the applicant is a corporation, then the short-form application will 
require the name and address of the corporate office and the name and 
title of an officer or director. If the applicant is a partnership, 
then the application will require the names, citizenship and addresses 
of all partners, and, if a partner is not a natural person, then the 
name and title of a responsible person should be included as well. If 
the applicant is a trust, then the name and address of the trustee will 
be required. If the applicant is none of the above, then it must 
identify and describe itself and its principals or other responsible 
persons;
    (iii) The identity of the person(s) authorized to make or withdraw 
a bid;
    (iv) If the applicant applies as a designated entity pursuant to 
section 27.210(b), a statement to that effect and a declaration, under 
penalty of perjury, that the applicant is qualified as a designated 
entity under Sec. 27.210(b).
    (v) Certification that the applicant is legally, technically, 
financially and otherwise qualified pursuant to section 308(b) of the 
Communications Act of 1934, as amended. The Commission will accept 
applications certifying that a request for waiver or other relief from 
the requirements of section 310 is pending;
    (vi) Certification that the applicant is in compliance with the 
foreign ownership provisions of section 310 of the Communications Act 
of 1934, as amended;
    (vii) Certification that the applicant is and will, during the 
pendency of its application(s), remain in compliance with any service-
specific qualifications applicable to the licenses on which the 
applicant intends to bid including, but not limited to, financial 
qualifications. The Commission may require certification in certain 
services that the applicant will, following grant of a license, come 
into compliance with certain service-specific rules, including, but not 
limited to, ownership eligibility limitations;
    (viii) An exhibit, certified as truthful under penalty of perjury, 
identifying all parties with whom the applicant has entered into 
partnerships, joint ventures, consortia or other agreements, 
arrangements or understandings of any kind relating to the licenses 
being auctioned, including any such agreements relating to the post-
auction market structure;
    (ix) Certification under penalty of perjury that it has not entered 
and will not enter into any explicit or implicit agreements, 
arrangements or understandings of any kind with any parties other than 
those identified pursuant to paragraph (a)(2)(viii) of this section 
regarding the amount of their bids, bidding strategies or the 
particular licenses on which they will or will not bid; and
    (x) Certification under penalty of perjury that it is not in 
default on any Commission licenses and that it is not delinquent on any 
extension of credit from any federal agency.

    Note to paragraph (a): The Commission may also request 
applicants to submit additional information for informational 
purposes to aid in its preparation of required reports to Congress.

    (b) Modification and Amendment of Application. Applicants will be

[[Page 9665]]

permitted to amend their Form 175 applications to make minor amendments 
to correct minor errors or defects such as typographical errors. 
Applicants will also be permitted to amend FCC Form 175 to make changes 
to the information required by Sec. 27.204(a) (such as ownership 
changes or changes in the identification of parties to bidding 
consortia), provided such changes do not result in a change in control 
of the applicant and do not involve another applicant (or parties in 
interest to an applicant) who has applied for licenses in any of the 
same geographic license areas as the applicant. Amendments which change 
control of the applicant will be considered major amendments. An FCC 
Form 175 which is amended by a major amendment will be considered to be 
newly filed and cannot be resubmitted after applicable filing 
deadlines. See also Sec. 1.2105 of this chapter.
    (c) Prohibition of collusion. (1) Except as provided in paragraphs 
(c)(2), (c)(3) and (c)(4) of this section, after the filing of short-
form applications, all applicants are prohibited from cooperating, 
collaborating, discussing or disclosing in any manner the substance of 
their bids or bidding strategies, or discussing or negotiating 
settlement agreements, with other applicants until after the high 
bidder makes the required down payment, unless such applicants are 
members of a bidding consortium or other joint bidding arrangement 
identified on the bidder's short-form application pursuant to 
Sec. 27.204(a)(2)(viii).
    (2) Applicants may modify their short-form applications to reflect 
formation of consortia or changes in ownership at any time before or 
during an auction, provided such changes do not result in a change in 
control of the applicant, and provided that the parties forming 
consortia or entering into ownership agreements have not applied for 
licenses in any of the same geographic license areas. Such changes will 
not be considered major modifications of the application.
    (3) After the filing of short-form applications, applicants may 
make agreements to bid jointly for licenses, provided the parties to 
the agreement have not applied for licenses in any of the same 
geographic license areas.
    (4) After the filing of short-form applications, a holder of a non-
controlling attributable interest in an entity submitting a short-form 
application may acquire an ownership interest in, form a consortium 
with, or enter into a joint bidding arrangement with, other applicants 
for licenses in the same geographic license area, provided that:
    (i) The attributable interest holder certifies to the Commission 
that it has not communicated and will not communicate with any party 
concerning the bids or bidding strategies of more than one of the 
applicants in which it holds an attributable interest, or with which it 
has a consortium or joint bidding arrangement, and which have applied 
for licenses in the same geographic license area(s); and
    (ii) The arrangements do not result in any change in control of an 
applicant.
    (5) Applicants must modify their short-form applications to reflect 
any changes in ownership or in the membership of consortia or joint 
bidding arrangements.
    (6) For purposes of this paragraph:
    (i) The term ``applicant'' shall include the entity submitting a 
short-form application to participate in an auction (FCC Form 175), as 
well as all holders of partnership and other ownership interests and 
any stock interest amounting to 5 percent or more of the entity, or 
outstanding stock, or outstanding voting stock of the entity submitting 
a short-form application, and all officers and directors of that 
entity; and
    (ii) The term ``bids or bidding strategies'' shall include capital 
calls or requests for additional funds in support of bids or bidding 
strategies.


Sec. 27.205  Submission of upfront payments.

    (a) Each eligible bidder for WCS licenses subject to auction shall 
pay an upfront payment pursuant to this chapter and procedures 
specified by public notice. No interest will be paid on upfront 
payments.
    (b) Upfront payments must be made by wire transfer.
    (c) If the applicant does not submit at least the minimum upfront 
payment, it will be ineligible to bid, its application will be 
dismissed and any upfront payment it has made will be returned.
    (d) The upfront payment(s) of a bidder will be credited toward any 
down payment required for licenses on which the bidder is the high 
bidder. Where the upfront payment amount exceeds the required deposit 
of a winning bidder, the Commission will refund the excess amount after 
determining that no bid withdrawal payments are owed by that bidder.
    (e) In accordance with the provisions of paragraph (d) of this 
section, in the event a payment is assessed pursuant to Sec. 27.203 for 
bid withdrawal or default, upfront payments or down payments on deposit 
with the Commission will be used to satisfy the bid withdrawal or 
default payment before being applied toward any additional payment 
obligations that the high bidder may have.


Sec. 27.206  Submission of down payment and filing of long-form 
applications.

    (a) After bidding has ended, the Commission will identify and 
notify the high bidder and declare the bidding closed.
    (b) Within ten (10) business days after being notified that it is a 
high bidder on a particular license(s), a high bidder must submit to 
the Commission's lockbox bank such additional funds (the ``down 
payment'') as are necessary to bring its total deposits (not including 
upfront payments applied to satisfy bid withdrawal or default payments) 
up to twenty (20) percent of its high bid(s). This down payment must be 
made by wire transfer or cashier's check drawn in U.S. dollars from a 
financial institution whose deposits are insured by the Federal Deposit 
Insurance Corporation and must be made payable to the Federal 
Communications Commission. Down payments will be held by the Commission 
until the high bidder has been awarded the license and has paid the 
remaining balance due on the license, in which case it will not be 
returned, or until the winning bidder is found unqualified to be a 
licensee or has defaulted, in which case it will be returned, less 
applicable payments. No interest will be paid on any down payment.
    (c) A high bidder that meets its down payment obligations in a 
timely manner must, within ten (10) business days after being notified 
that it is a high bidder, submit an additional application (the ``long-
form application'') pursuant to the rules governing the service in 
which the applicant is the high bidder. Notwithstanding any other 
provision in title 47 of the Code of Federal Regulations to the 
contrary, high bidders need not submit an additional application filing 
fee with their long-form applications. Notwithstanding any other 
provision in Title 47 of the Code of Federal Regulations to the 
contrary, the high bidder's long-form application must be mailed or 
otherwise delivered to: Office of the Secretary, Federal Communications 
Commission, Attention: Auction Application Processing Section, 1919 M 
Street, NW, Room 222, Washington, DC 20554. An applicant that fails to 
submit the required long-form application as required under this 
section, and fails to establish good cause for any late-filed 
submission, shall be deemed to have defaulted and will be subject to 
the payments set forth in section 27.203.

[[Page 9666]]

    (d) As an exhibit to its long-form application, the applicant must 
provide a detailed explanation of the terms and conditions and parties 
involved in any bidding consortia, joint venture, partnership or other 
agreement or arrangement it had entered into relating to the 
competitive bidding process prior to the time bidding was completed. 
Such agreements must have been entered into prior to the filing of 
short-form applications pursuant to Sec. 27.204.


Sec. 27.207  Procedures for filing petitions to deny against WCS long-
form applications.

    (a) Within five (5) days after the Commission gives public notice 
that a long-form application has been accepted for filing, petitions to 
deny that application may be filed. Any such petitions must contain 
allegations of fact supported by affidavit of a person or persons with 
personal knowledge thereof, and be served by hand upon the applicant or 
its representative.
    (b) An applicant may file an opposition to any petition to deny 
within five (5) days after the deadline for filing petitions to deny. 
Allegations of fact or denials thereof must be supported by affidavit 
of a person or persons with personal knowledge thereof, and such 
opposition must be served by hand upon the petitioner.
    (c) If the Commission determines that:
    (1) An applicant is qualified and there is no substantial and 
material issue of fact concerning that determination, it will grant the 
application;
    (2) An applicant is not qualified and that there is no substantial 
issue of fact concerning that determination, the Commission need not 
hold a evidentiary hearing and will deny the application; and
    (3) Substantial and material issues of fact require a hearing, it 
will conduct a hearing. The Commission may permit all or part of the 
evidence to be submitted in written form and may permit employees other 
than administrative law judges to preside at the taking of written 
evidence. Such hearing will be conducted on an expedited basis.


Sec. 27.208  License grant, denial, default, and disqualification.

    (a) Unless otherwise specified in these rules, auction winners are 
required to pay the balance of their winning bids in a lump sum within 
ten (10) business days following award of the license. Grant of the 
license will be conditioned on full and timely payment of the winning 
bid.
    (b) If a winning bidder withdraws its bid after the Commission has 
declared competitive bidding closed or fails to remit the required down 
payment within ten (10) business days after the Commission has declared 
competitive bidding closed, the bidder will be deemed to have 
defaulted, its application will be dismissed, and it will be liable for 
the default penalty specified in Sec. 27.203. In such event, the 
Commission may either re-auction the license to existing or new 
applicants or offer it to the other highest bidders (in descending 
order) at their final bids. The down payment obligations set forth in 
Sec. 27.206(b) will apply.
    (c) A winning bidder who is found unqualified to be a licensee, 
fails to remit the balance of its winning bid in a timely manner, or 
defaults or is disqualified for any reason after having made the 
required down payment, will be deemed to have defaulted and will be 
liable for the payment set forth in Sec. 27.203. In such event, the 
Commission will conduct another auction for the license, affording new 
parties an opportunity to file applications for the license.
    (d) Bidders who are found to have violated the antitrust laws or 
the Commission's rules in connection with their participation in the 
competitive bidding process may be subject, in addition to any other 
applicable sanctions, to forfeiture of their upfront payment, down 
payment or full bid amount, and may be prohibited from participating in 
future auctions.


Sec. 27.209  Designated entities; bidding credits; unjust enrichment.

    (a) Designated entities entitled to preferences in the WCS auction 
are small businesses and very small businesses as defined in 
Sec. 27.110(b). Designated entities will be eligible for bidding 
credits, as defined in paragraphs (b) and (c) of this section.
    (b) A winning bidder that qualifies as a small business may use a 
bidding credit of 25 percent to lower the cost of its winning bid.
    (c) A winning bidder that qualifies as a very small business may 
use a bidding credit of 35 percent to lower the cost of its winning 
bid.
    (d) Unjust Enrichment:
    (1) If a small business or very small business (as defined in 
Sec. 27.210(b)) that utilizes a bidding credit under this section seeks 
to transfer control or assign an authorization to an entity that is not 
a small business or a very small business, or seeks to make any other 
change in ownership that would result in the licensee losing 
eligibility as a small business or very small business, the small 
business or very small business must seek Commission approval and 
reimburse the U.S. Government for the amount of the bidding credit, 
plus interest based on the rate for ten year U.S. Treasury obligations 
applicable on the date the license is granted, as a condition of 
approval of the assignment or transfer of control.
    (2) If a very small business (as defined in Sec. 27.210(b)) that 
utilizes a bidding credit under this section seeks to transfer control 
or assign an authorization to a small business meeting the eligibility 
standards for a lower bidding credit, or seeks to make any other change 
in ownership that would result in the licensee qualifying for a lower 
bidding credit under this section, the licensee must seek Commission 
approval and reimburse the U.S. Government for the difference between 
the amount of the bidding credit obtained by the licensee and the 
bidding credit for which the assignee, transferee, or licensee is 
eligible under this section, plus interest based on the rate for ten 
year U.S. Treasury obligations applicable on the date the license is 
granted, as a condition of the approval of such assignment, transfer, 
or other ownership change.
    (3) The amount of payments made pursuant to paragraphs (d)(1) and 
(d)(2) of this section will be reduced over time as follows: A transfer 
in the first five years of the license term will result in a forfeiture 
of 100 percent of the value of the bidding credit (or the difference 
between the bidding credit obtained by the original licensee and the 
bidding credit for which the post-transfer licensee is eligible); in 
year 6 of the license term the payment will be 80 percent; in year 7 
the payment will be 60 percent; in year 8 the payment will be 40 
percent; and in year 9 the payment will be 20 percent. For a transfer 
occurring in year 10 and thereafter, there will be no assessment.


Sec. 27.210  Definitions.

    (a) Scope. The definitions in this section apply to Sec. 27.209, 
unless otherwise specified in those sections.
    (b) Small Business; Very Small Business; Consortia.
    (1) A small business is an entity that, together with its 
affiliates and controlling principals, has average annual gross 
revenues that are not more than $40 million for the preceding three 
years.
    (2) A very small business is an entity that, together with its 
affiliates and controlling principals, has average annual gross 
revenues that are not more than $15 million for the preceding three 
years.
    (3) For purposes of determining whether an entity meets the $40 
million

[[Page 9667]]

average annual gross revenues size standard set forth in paragraph 
(b)(1) of this section or the $15 million average annual gross revenues 
size standard set forth in paragraph (b)(2) of this section, the gross 
revenues of the applicant and its affiliates shall be considered on a 
cumulative basis and aggregated subject to the following exceptions:
    (i) For purposes of paragraphs (b)(1) and (b)(2) of this section, 
the personal net worth of an applicant and its affiliates is not 
included in the applicant's gross revenues; and
    (ii) For purposes of paragraphs (b)(1) and (b)(2) of this section, 
Indian tribes or Alaska Regional or Village Corporations organized 
pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
seq.), or entities owned and controlled by such tribes or corporations, 
are not considered affiliates of an applicant (or licensee) that is 
owned and controlled by such tribes, corporations or entities, and that 
otherwise complies with the requirements of paragraphs (b)(1) and 
(b)(2) of this section, except that gross revenues derived from gaming 
activities conducted by affiliated entities pursuant to the Indian 
Gaming Regulatory Act (25 U.S.C. 2701 et seq.) will be counted in 
determining such applicant's (or licensee's) compliance with the 
financial requirements of paragraphs (b)(1) and (b)(2) of this section, 
unless such applicant establishes that it will not receive a 
substantial unfair competitive advantage because significant legal 
constraints restrict the applicant's ability to access such gross 
revenues.
    (4) A consortium of small businesses (or a consortium of very small 
businesses) is a conglomerate organization formed as a joint venture 
between or among mutually independent business firms, each of which 
individually satisfies the definition in paragraph (b)(1) of this 
section or each of which satisfies the definition in paragraph (b)(2) 
of this section. Where an applicant (or licensee) is a consortium of 
small businesses, the gross revenues of each small business shall not 
be aggregated.
    (c) Gross Revenues. Gross revenues shall mean all income received 
by an entity, whether earned or passive, before any deductions are made 
for costs of doing business (e.g., cost of goods sold), as evidenced by 
audited financial statements for the relevant number of most recently 
completed calendar years, or, if audited financial statements were not 
prepared on a calendar-year basis, for the most recently completed 
fiscal years preceding the filing of the applicant's short-form 
application (Form 175). If an entity was not in existence for all or 
part of the relevant period, gross revenues shall be evidenced by the 
audited financial statements of the entity's predecessor-in-interest 
or, if there is no identifiable predecessor-in-interest, unaudited 
financial statements certified by the applicant as accurate. When an 
applicant does not otherwise use audited financial statements, its 
gross revenues may be certified by its chief financial officer or its 
equivalent.
    (d) Affiliate.--(1) Basis for affiliation. An individual or entity 
is an affiliate of an applicant if such individual or entity:
    (i) Directly or indirectly controls or has the power to control the 
applicant;
    (ii) Is directly or indirectly controlled by the applicant;
    (iii) Is directly or indirectly controlled by a third party or 
parties who also control or have the power to control the applicant; or
    (iv) Has an ``identity of interest'' with the applicant.
    (2) Nature of control in determining affiliation. (i) Every 
business concern is considered to have one or more parties who directly 
or indirectly control or have the power to control it. Control may be 
affirmative or negative and it is immaterial whether it is exercised so 
long as the power to control exists.

    Example for paragraph (d)(2)(i). An applicant owning 50 percent 
of the voting stock of another concern would have negative power to 
control such concern since such party can block any action of the 
other stockholders. Also, the bylaws of a corporation may permit a 
stockholder with less than 50 percent of the voting stock to block 
any actions taken by the other stockholders in the other entity. 
Affiliation exists when the applicant has the power to control a 
concern while at the same time another person, or persons, are in 
control of the concern at the will of the party or parties with the 
power of control.

    (ii) Control can arise through stock ownership; occupancy of 
director, officer, or key employee positions; contractual or other 
business relations; or combinations of these and other factors. A key 
employee is an employee who, because of his/her position in the 
concern, has a critical influence in or substantive control over the 
operations or management of the concern.
    (iii) Control can arise through management positions if the voting 
stock is so widely distributed that no effective control can be 
established.

    Example for paragraph (d)(2)(iii). In a corporation where the 
officers and directors own various size blocks of stock totaling 40 
percent of the corporation's voting stock, but no officer or 
director has a block sufficient to give him/her control or the power 
to control and the remaining 60 percent is widely distributed with 
no individual stockholder having a stock interest greater than 10 
percent, management has the power to control. If persons with such 
management control of the other entity are controlling principals of 
the applicant, the other entity will be deemed an affiliate of the 
applicant.

    (3) Identity of interest between and among persons. Affiliation can 
arise between or among two or more persons with an identity of 
interest, such as members of the same family or persons with common 
investments. In determining if the applicant controls or is controlled 
by a concern, persons with an identity of interest will be treated as 
though they were one person.
    (i) Spousal affiliation. Both spouses are deemed to own or control 
or have the power to control interests owned or controlled by either of 
them, unless they are subject to a legal separation recognized by a 
court of competent jurisdiction in the United States.
    (ii) Kinship affiliation. Immediate family members will be presumed 
to own or control or have the power to control interests owned or 
controlled by other immediate family members. In this context 
``immediate family member'' means father, mother, husband, wife, son, 
daughter, brother, sister, father- or mother-in-law, son- or daughter-
in-law, brother- or sister-in-law, step-father or -mother, step-brother 
or -sister, step-son or -daughter, half-brother or -sister. This 
presumption may be rebutted by showing that:
    (A) The family members are estranged;
    (B) The family ties are remote;
    (C) The family members are not closely involved with each other in 
business matters.

    Example for paragraph (d)(3)(ii). A owns a controlling interest 
in Corporation X. A's sister-in-law, B, has a controlling interest 
in a WCS geographic area license application. Because A and B have a 
presumptive kinship affiliation, A's interest in Corporation X is 
attributable to B, and thus to the applicant, unless B rebuts the 
presumption with the necessary showing.

    (4) Affiliation through stock ownership. (i) An applicant is 
presumed to control or have the power to control a concern if he/she 
owns or controls or has the power to control 50 percent or more of its 
voting stock.
    (ii) An applicant is presumed to control or have the power to 
control a concern even though he/she owns, controls, or has the power 
to control less than 50 percent of the concern's voting stock, if the 
block of stock he/she owns, controls, or has the power to control is 
large as compared with any other outstanding block of stock.
    (iii) If two or more persons each owns, controls or has the power 
to control less

[[Page 9668]]

than 50 percent of the voting stock of a concern, such minority 
holdings are equal or approximately equal in size, and the aggregate of 
these minority holdings is large as compared with any other stock 
holding, the presumption arises that each one of these persons 
individually controls or has the power to control the concern; however, 
such presumption may be rebutted by a showing that such control or 
power to control, in fact, does not exist.
    (5) Affiliation arising under stock options, convertible 
debentures, and agreements to merge. Stock options, convertible 
debentures, and agreements to merge (including agreements in principle) 
are generally considered to have a present effect on the power to 
control the concern. Therefore, in making a size determination, such 
options, debentures, and agreements will generally be treated as though 
the rights held thereunder had been exercised. However, neither an 
affiliate nor an applicant can use such options and debentures to 
appear to terminate its control over another concern before it actually 
does so.

    Example 1 for paragraph (d)(5). If company B holds an option to 
purchase a controlling interest in company A, who holds a 
controlling interest in a WCS geographic area license application, 
the situation is treated as though company B had exercised its 
rights and had become owner of a controlling interest in company A. 
The gross revenues of company B must be taken into account in 
determining the size of the applicant.
    Example 2 for paragraph (d)(5). If a large company, BigCo, holds 
70% (70 of 100 outstanding shares) of the voting stock of company A, 
who holds a controlling interest in a WCS geographic area license 
application, and gives a third party, SmallCo, an option to purchase 
50 of the 70 shares owned by BigCo, BigCo will be deemed to be an 
affiliate of company A, and thus the applicant, until SmallCo 
actually exercises its options to purchase such shares. In order to 
prevent BigCo from circumventing the intent of the rule, which 
requires such options to be considered on a fully diluted basis, the 
option is not considered to have present effect in this case.
    Example 3 for paragraph (d)(5). If company A has entered into an 
agreement to merge with company B in the future, the situation is 
treated as though the merger has taken place.

    (6) Affiliation under voting trusts. (i) Stock interests held in 
trust shall be deemed controlled by any person who holds or shares the 
power to vote such stock, to any person who has the sole power to sell 
such stock, and to any person who has the right to revoke the trust at 
will or to replace the trustee at will.
    (ii) If a trustee has a familial, personal or extra-trust business 
relationship to the grantor or the beneficiary, the stock interests 
held in trust will be deemed controlled by the grantor or beneficiary, 
as appropriate.
    (iii) If the primary purpose of a voting trust, or similar 
agreement, is to separate voting power from beneficial ownership of 
voting stock for the purpose of shifting control of or the power to 
control a concern in order that such concern or another concern may 
meet the Commission's size standards, such voting trust shall not be 
considered valid for this purpose regardless of whether it is or is not 
recognized within the appropriate jurisdiction.
    (7) Affiliation through common management. Affiliation generally 
arises where officers, directors, or key employees serve as the 
majority or otherwise as the controlling element of the board of 
directors and/or the management of another entity.
    (8) Affiliation through common facilities. Affiliation generally 
arises where one concern shares office space and/or employees and/or 
other facilities with another concern, particularly where such concerns 
are in the same or related industry or field of operations, or where 
such concerns were formerly affiliated, and through these sharing 
arrangements one concern has control, or potential control, of the 
other concern.
    (9) Affiliation through contractual relationships. Affiliation 
generally arises where one concern is dependent upon another concern 
for contracts and business to such a degree that one concern has 
control, or potential control, of the other concern.
    (10) Affiliation under joint venture arrangements. (i) A joint 
venture for size determination purposes is an association of concerns 
and/or individuals, with interests in any degree or proportion, formed 
by contract, express or implied, to engage in and carry out a single, 
specific business venture for joint profit for which purpose they 
combine their efforts, property, money, skill and knowledge, but not on 
a continuing or permanent basis for conducting business generally. The 
determination whether an entity is a joint venture is based upon the 
facts of the business operation, regardless of how the business 
operation may be designated by the parties involved. An agreement to 
share profits/losses proportionate to each party's contribution to the 
business operation is a significant factor in determining whether the 
business operation is a joint venture.
    (ii) The parties to a joint venture are considered to be affiliated 
with each other.

Subpart E--Application, Licensing, and Processing Rules for WCS


Sec. 27.301  Authorization required.

    No person shall use or operate any device for the transmission of 
energy or communications by radio in the services authorized by this 
part except as provided in this part.


Sec. 27.302  Eligibility.

    (a) General. Authorizations will be granted upon proper application 
if:
    (1) The applicant is qualified under the applicable laws and the 
regulations, policies and decisions issued under those laws, including 
Sec. 27.12;
    (2) There are frequencies available to provide satisfactory 
service; and
    (3) The public interest, convenience or necessity would be served 
by a grant.
    (b) Alien Ownership. A WCS authorization may not be granted to or 
held by an entity not meeting the requirements of section 310 of the 
Communications Act of 1934, as amended, 47 U.S.C. section 310 insofar 
as applicable to the particular service in question.


Sec. 27.303  Formal and informal applications.

    (a) Except for an authorization under any of the conditions stated 
in section 308(a) of the Communications Act of 1934 (47 U.S.C. 308(a)), 
the Commission may grant only upon written application received by it, 
the following authorization: station licenses; modifications of 
licenses; renewals of licenses; transfers and assignments of station 
licenses, or any right thereunder.
    (b) Except as may be otherwise permitted by this part, a separate 
written application shall be filed for each instrument of authorization 
requested. Applications may be:
    (1) ``Formal applications'' where the Commission has prescribed in 
this part a standard form; or
    (2) ``Informal applications'' (normally in letter form) where the 
Commission has not prescribed a standard form.
    (c) An informal application will be accepted for filing only if:
    (1) A standard form is not prescribed or clearly applicable to the 
authorization requested;
    (2) It is a document submitted, in duplicate, with a caption which 
indicates clearly the nature of the request, radio service involved, 
location of the station, and the application file number (if known); 
and
    (3) It contains all the technical details and informational 
showings required by the rules and states clearly and completely the 
facts involved and authorization desired.

[[Page 9669]]

Sec. 27.304  Filing of WCS applications, fees, and numbers of copies.

    (a) As prescribed by Sec. 27.307, standard formal application forms 
applicable to the WCS may be obtained from either:
    (1) Federal Communications Commission, Washington, DC 20554; or
    (2) By calling the Commission's Forms Distribution Center, (202) 
418-3676.
    (b) Applications for the initial provision of WCS service must be 
filed on FCC Form 175 in accordance with the rules in Sec. 27.204 and 
part 1, subpart Q of this chapter. In the event of mutual exclusivity 
between applicants filing FCC Form 175, only auction winners will be 
eligible to file subsequent long form applications on FCC Form 600 for 
initial WCS licenses. Mutually exclusive applications filed on Form 175 
are subject to competitive bidding under those rules.
    (c) All applications for WCS radio station authorizations (other 
than applications for initial provision of WCS service filed on FCC 
Form 175) shall be submitted for filing to: Federal Communications 
Commission, Wireless Telecommunications Bureau, 1270 Fairfield Road, 
Gettysburg, PA 17325, Attention: WCS Processing Section.
    (d) All correspondence or amendments concerning a submitted 
application shall clearly identify the name of the applicant, FCC 
Account Number or Commission file number (if known) or station call 
sign of the application involved, and may be sent directly to the 
Wireless Telecommunications Bureau, 1270 Fairfield Road, Gettysburg, PA 
17325, Attention: WCS Processing Section.
    (e) Except as otherwise specified, all applications, amendments, 
correspondence, pleadings and forms (with the exception of FCC Form 
175, which is to be filed electronically pursuant to Sec. 27.204) shall 
be submitted on one original paper copy and with a 3.5-inch floppy disk 
containing all attachments, and any other supporting documentation in 
separate ASCII text (.TXT) file formats. Those filing any amendments, 
correspondence, pleadings, and forms must simultaneously submit the 
original hard copy which must be stamped ``original''. In addition to 
the original hard copy, those filing pleadings, including pleadings 
under Sec. 1.2108 of this chapter shall also submit 2 paper copies as 
provided in Sec. 1.51 of this chapter. Applicants who file 
electronically will not be required to follow these procedures, but 
instead are required to follow all instructions for electronic filing 
detailed by the FCC in any subsequent public notices.
    (f) Subsequent application by auction winners or non-mutually 
exclusive applicants for WCS radio station(s) under this part 27. FCC 
Form 600 shall be submitted by each auction winner for each WCS license 
applied for on FCC Form 175. In the event that mutual exclusivity does 
not exist between applicants filing FCC Form 175, the Commission will 
so inform the applicant and the applicant will also file FCC Form 600. 
Blanket licenses are granted for each market frequency block. 
Applications for individual sites are not needed and will not be 
accepted. See Sec. 27.11.


Sec. 27.305  [Reserved].


Sec. 27.306  Miscellaneous forms.

    (a) Renewal of station licenses. Except for renewal of special 
temporary authorizations, FCC Form 405 (``Application for Renewal of 
Station License'') must be filed in duplicate by the licensee between 
thirty (30) and sixty (60) days prior to the expiration date of the 
license sought to be renewed.
    (b) Assignment of authorization or transfer of control. Assignments 
of authorization or transfers of control applications are to be filed 
on the FCC Form 490, ``Application for Assignment of Authorization or 
Consent to Transfer of Control of License''.


Sec. 27.307  General application requirements.

    (a) Each application (including applications filed on Forms 175 and 
600) for a radio station authorization or for consent to assignment or 
transfer of control in the WCS shall disclose fully the real party or 
parties in interest and must include the following information:
    (1) A list of its subsidiaries, if any. Subsidiary means any 
business five per cent or more whose stock, warrants, options or debt 
securities are owned by the applicant or an officer, director, 
stockholder or key management personnel of the applicant. This list 
must include a description of each subsidiary's principal business and 
a description of each subsidiary's relationship to the applicant;
    (2) A list of its affiliates, if any. Affiliate is defined in 
Sec. 27.210(d);
    (3) A list of the names, addresses, citizenship and principal 
business of any person holding five percent or more of each class of 
stock, warrants, options or debt securities together with the amount 
and percentage held, and the name, address, citizenship and principal 
place of business of any person on whose account, if other than the 
holder, such interest is held. If any of these persons are related by 
blood or marriage, include such relationship in the statement;
    (4) In the case of partnerships, the name and address of each 
partner, each partner's citizenship and the share or interest 
participation in the partnership. This information must be provided for 
all partners, regardless of their respective ownership interests in the 
partnership. This information must be included an exhibit to the 
application; and
    (b) Each application for a radio station authorization in the WCS 
must:
    (1) Submit the information required by the Commission's rules, 
requests, and application forms;
    (2) Be maintained by the applicant substantially accurate and 
complete in all significant respects in accordance with the provisions 
of Sec. 1.65 of this chapter; and
    (3) Show compliance with and make all special showings that may be 
applicable.
    (c) Where documents, exhibits, or other lengthy showings already on 
file with the Commission contain information which is required by an 
application form, the application may specifically refer to such 
information, if:
    (1) The information previously filed is over one A4 (21 cm x 29.7 
cm) or 8.5 x 11 inch (21.6 cm x 27.9 cm) page in length, and all 
information referenced therein is current and accurate in all 
significant respects under Sec. 1.65 of this chapter; and
    (2) The reference states specifically where the previously filed 
information can actually be found, including mention of:
    (i) The station call sign or application file number whenever the 
reference is to station files or previously filed applications; and
    (ii) The title of the proceeding, the docket number, and any legal 
citations, whenever the reference is to a docketed proceeding. However, 
questions on an application form which call for specific technical 
data, or which can be answered by a ``yes'' or ``no'' or other short 
answer shall be answered as appropriate and shall not be cross-
referenced to a previous filing.
    (d) In addition to the general application requirements of subpart 
F of this part and Sec. 27.204, applicants shall submit any additional 
documents, exhibits, or signed written statements of fact:
    (1) As may be required by these rules; and
    (2) As the Commission, at any time after the filing of an 
application and during the term of any authorization, may require from 
any applicant,

[[Page 9670]]

permittee, or licensee to enable it to determine whether a radio 
authorization should be granted, denied, or revoked.
    (e) Except when the Commission has declared explicitly to the 
contrary, an informational requirement does not in itself imply the 
processing treatment of decisional weight to be accorded the response.


Sec. 27.308  Technical content of applications.

    All applications required by this part shall contain all technical 
information required by the application forms or associated public 
notice(s). Applications other than initial applications for a WCS 
license must also comply with all technical requirements of the rules 
governing the WCS (see subparts C and D of this part as appropriate).


Sec. 27.310  Waiver of rules.

    (a) Request for waivers. (1) Waivers of these rules may be granted 
upon application or by the Commission on its own motion. Requests for 
waivers shall contain a statement of reasons sufficient to justify a 
waiver. Waivers will not be granted except upon an affirmative showing:
    (i) That the underlying purpose of the rule will not be served, or 
would be frustrated, by its application in a particular case, and that 
grant of the waiver is otherwise in the public interest; or
    (ii) That the unique facts and circumstances of a particular case 
render application of the rule inequitable, unduly burdensome or 
otherwise contrary to the public interest. Applicants must also show 
the lack of a reasonable alternative.
    (2) If the information necessary to support a waiver request is 
already on file, the applicant may cross-reference to the specific 
filing where it may be found.
    (b) Denial of waiver, alternate showing required. If a waiver is 
not granted, the application will be dismissed as defective unless the 
applicant has also provided an alternative proposal which complies with 
the Commission's rules (including any required showings).


Sec. 27.311  Defective applications.

    (a) Unless the Commission shall otherwise permit, an application 
will be unacceptable for filing and will be returned to the applicant 
with a brief statement as to the omissions or discrepancies if:
    (1) The application is defective with respect to completeness of 
answers to questions, informational showings, execution, or other 
matters of a formal character; or
    (2) The application does not comply with the Commission's rules, 
regulations, specific requirements for additional information or other 
requirements. See also Sec. 27.204.
    (b) Some examples of common deficiencies which result in defective 
applications under paragraph (a) of this section are:
    (1) The application is not filled out completely and signed; or
    (2) The application (other than an application filed on FCC Form 
175) does not include an environmental assessment as required for an 
action that may have a significant impact upon the environment, as 
defined in Sec. 1.1307 of this chapter.
    (3) The application is filed prior to the public notice issued 
under Sec. 27.316 announcing the application filing date for the 
relevant auction or after the cutoff date prescribed in that public 
notice;
    (c) If an applicant is requested by the Commission to file any 
documents or any supplementary or explanatory information not 
specifically required in the prescribed application form, a failure to 
comply with such request within a specified time period will be deemed 
to render the application defective and will subject it to dismissal.


Sec. 27.312  Inconsistent or conflicting applications.

    While an application is pending and undecided under this part 27, 
no subsequent inconsistent or conflicting application may be filed by 
the same applicant, his successor or assignee, or on behalf or for the 
benefit of the same applicant, his successor or assignee.


Sec. 27.313  Amendment of applications for Wireless Communications 
Service (other than applications filed on FCC Form 175).

    This section applies to all applications for Wireless 
Communications Service other than applications filed on FCC Form 175.
    (a) Amendments as of right. A pending application may be amended as 
a matter of right if the application has not been designated for 
hearing.
    (1) Amendments shall comply with Sec. 27.319, as applicable; and
    (2) Amendments which resolve interference conflicts or amendments 
under Sec. 27.319 may be filed at any time.
    (b) The Commission or the presiding officer may grant requests to 
amend an application designated for hearing only if a written petition 
demonstrating good cause is submitted and properly served upon the 
parties of record.
    (c) Major amendments, minor amendments. The Commission will 
classify all amendments as minor, unless there is a substantial change 
in ownership or control. Such an amendment shall be deemed to be a 
major amendment subject to Sec. 27.316.
    (d) If a petition to deny (or other formal objection) has been 
filed, any amendment, requests for waiver, (or other written 
communications) shall be served on the petitioner by hand, unless 
waiver of this requirement is granted pursuant to paragraph (e) of this 
section. See also Sec. 1.2108 of this chapter.
    (e) The Commission may waive the service requirements of paragraph 
(d) of this section and prescribe such alternative procedures as may be 
appropriate under the circumstances to protect petitioners' interests 
and to avoid undue delay in a proceeding, if an applicant submits a 
request for waiver which demonstrates that the service requirement is 
unreasonably burdensome.
    (f) Any amendment to an application shall be signed and shall be 
submitted in the same manner, and with the same number of copies, as 
was the original application. Amendments may be made in letter form if 
they comply in all other respects with the requirements of this 
chapter.
    (g) An application will be considered to be a newly filed 
application if it is amended by a major amendment (as defined in this 
section), except in the following circumstances:
    (1) The amendment reflects only a change in ownership or control 
found by the Commission to be in the public interest; or
    (2) The amendment corrects typographical transcription, or similar 
clerical errors which are clearly demonstrated to be mistakes by 
reference to other parts of the application, and whose discovery does 
not create new or increased frequency conflicts.


Sec. 27.314  Application for temporary authorizations.

    In circumstances requiring immediate or temporary use of 
facilities, request may be made for special temporary authority (STA) 
to operate new or modified equipment. Such requests may be submitted as 
informal applications (see Sec. 22.105 of this chapter) and must 
contain complete details about the proposed operation and the 
circumstances that fully justify and necessitate the grant of STA. Such 
requests should be filed in time to be received by the FCC at least 10 
days prior to the date of proposed operation or, where an extension is 
sought, 10 days prior to the expiration date of the existing STA. 
Requests received less

[[Page 9671]]

than 10 days prior to the desired date of operation may be given 
expedited consideration only if compelling reasons are given, in 
writing, for the delay in submitting the request. Otherwise, such late-
filed requests are considered in turn, but action might not be taken 
prior to the desired date of operation. Requests for STAs must be 
accompanied by the proper filing fee.
    (a) Grant without Public Notice. STAs may be granted without being 
listed in a Public Notice, or prior to 30 days after such listing, if:
    (1) The STA is to be valid for 30 days or less and the applicant 
does not plan to file an application for regular authorization of the 
subject operation;
    (2) The STA is to be valid for 60 days or less, pending the filing 
of an application for regular authorization of the subject operation;
    (3) The STA is to allow interim operation to facilitate completion 
of authorized construction or to provide substantially the same service 
as previously authorized; or
    (4) The STA is made upon a finding that there are extraordinary 
circumstances requiring operation in the public interest and that delay 
in the institution of such service would seriously prejudice the public 
interest.
    (b) Limit on STA term. The FCC may grant STAs valid for a period 
not to exceed 180 days under the provisions of section 309(f) of the 
Communications Act of 1934, as amended, (47 U.S.C. section 309(f)) if 
extraordinary circumstances so require, and pending the filing of an 
application for regular operation. The FCC may grant extensions of STAs 
for a period of 180 days, but the applicant must show that 
extraordinary circumstances warrant such an extension.


Sec. 27.315  Receipt of application; applications in the Wireless 
Communications Service filed on FCC Form 175 and other applications in 
the WCS Service.

    (a) All applications for WCS filed pursuant to Sec. 27.304 are 
given a file number. The assignment of a file number to an application 
is merely for administrative convenience and does not indicate the 
acceptance of the application for filing and processing. Such 
assignment of a file number will not preclude the subsequent return or 
dismissal of the application if it is found to be defective or not in 
accordance with the Commission's rules.
    (b) Acceptance of an application for filing merely means that it 
has been the subject of a preliminary review as to completeness. Such 
acceptance will not preclude the subsequent return or dismissal of the 
application if it is found to be defective or not in accordance with 
the Commission's rules.


Sec. 27.316  Public notice period.

    (a) At regular intervals, the Commission may issue a public notice 
listing:
    (1) The acceptance for filing of all applications and major 
amendments thereto;
    (2) Significant Commission actions concerning applications listed 
as acceptable for filing;
    (3) Information which the Commission in its discretion believes of 
public significance. Such notices are solely for the purpose of 
informing the public and do not create any rights in an applicant or 
any other person; or
    (4) Special environmental considerations as required by part 1 of 
this chapter.
    (b) The Commission will not grant any application until expiration 
of a period of seven (7) days following the issuance date of a public 
notice listing the application, or any major amendments thereto, as 
acceptable for filing. Provided, that the Commission will not grant an 
application filed on Form 600 filed either by a winning bidder or by an 
applicant whose Form 175 application is not mutually exclusive with 
other applicants, until the expiration of a period of forty (40) days 
following the issuance of a public notice listing the application, or 
any major amendments thereto, as acceptable for filing. See also 
Sec. 27.207.
    (c) As an exception to paragraphs (a)(1), (a)(2) and (b) of this 
section, the public notice provisions are not applicable to 
applications:
    (1) For authorization of a minor technical change in the facilities 
of an authorized station where such a change would not be classified as 
a major amendment (as defined by Sec. 27.313) were such a change to be 
submitted as an amendment to a pending application;
    (2) For issuance of a license subsequent to a radio station 
authorization or, pending application for a grant of such license, any 
special or temporary authorization to permit interim operation to 
facilitate completion of authorized construction or to provide 
substantially the same service as would be authorized by such license;
    (3) For temporary authorization pursuant to Sec. 27.314;
    (4) For an authorization under any of the proviso clauses of 
section 308(a) of the Communications Act of 1934 (47 U.S.C. section 
308(a));
    (5) For consent to an involuntary assignment or transfer of control 
of a radio authorization; or
    (6) For consent to a voluntary assignment or transfer of control of 
a radio authorization, where the assignment or transfer does not 
involve a substantial change in ownership or control.


Sec. 27.317  Dismissal and return of applications.

    (a) Any application may be dismissed without prejudice as a matter 
of right if the applicant requests its dismissal prior to designation 
for hearing or, in the case of applications filed on Forms 175 and 175-
S, prior to auction. An applicant's request for the return of his 
application after it has been accepted for filing will be considered to 
be a request for dismissal without prejudice. Applicants requesting 
dismissal of their applications are also subject to Sec. 27.203.
    (b) A request to dismiss an application without prejudice will be 
considered after designation for hearing only if:
    (1) A written petition is submitted to the Commission and is 
properly served upon all parties of record; and
    (2) The petition complies with the provisions of this section and 
demonstrates good cause.
    (c) The Commission will dismiss an application for failure to 
prosecute or for failure to respond substantially within a specified 
time period to official correspondence or requests for additional 
information. Dismissal shall be without prejudice if made prior to 
designation for hearing or prior to auction, but dismissal may be made 
with prejudice for unsatisfactory compliance or after designation for 
hearing or after the applicant is notified that it is the winning 
bidder under the auction process.


Sec. 27.319  Ownership changes and agreements to amend or to dismiss 
applications or pleadings.

    (a) Applicability. Subject to the provisions of Sec. 27.204 
(Bidding Application and Certification Procedures; Prohibition of 
Collusion), this section applies to applicants and all other parties 
interested in pending applications who wish to resolve contested 
matters among themselves with a formal or an informal agreement or 
understanding. This section applies only when the agreement or 
understanding will result in:
    (1) A major change in the ownership of an applicant to which 
Secs. 27.313(c) and 27.313(g) apply or which would cause the applicant 
to lose its status as a designated entity under Sec. 27.210(b), or

[[Page 9672]]

    (2) The individual or mutual withdrawal, amendment or dismissal of 
any pending application, amendment, petition or other pleading.
    (b) The provisions of Sec. 27.207 will apply in the event of the 
filing of petitions to deny or other pleadings or informal objections 
filed against WCS applications. The provisions of Sec. 27.317 will 
apply in the event of dismissal of WCS applications.


Sec. 27.320  Opposition to applications.

    (a) Petitions to deny (including petitions for other forms of 
relief) and responsive pleadings for Commission consideration must 
comply with Sec. 27.207 and must:
    (1) Identify the application or applications (including applicant's 
name, station location, Commission file numbers and radio service 
involved) with which it is concerned;
    (2) Be filed in accordance with the pleading limitations, filing 
periods, and other applicable provisions of Secs. 1.41 through 1.52 of 
this chapter except where otherwise provided in Sec. 27.207;
    (3) Contain specific allegations of fact which, except for facts of 
which official notice may be taken, shall be supported by affidavit of 
a person or persons with personal knowledge thereof, and which shall be 
sufficient to demonstrate that the petitioner (or respondent) is a 
party in interest and that a grant of, or other Commission action 
regarding, the application would be prima facie inconsistent with the 
public interest;
    (4) Be filed within five (5) days after the date of public notice 
announcing the acceptance for filing of any such application or major 
amendment thereto (unless the Commission otherwise extends the filing 
deadline); and
    (5) Contain a certificate of service showing that it has been hand 
delivered to the applicant no later than the date of filing thereof 
with the Commission.
    (b) A petition to deny a major amendment to a previously filed 
application may only raise matters directly related to the amendment 
which could not have been raised in connection with the underlying, 
previously filed application. This does not apply to petitioners who 
gain standing because of the major amendment.
    (c) Parties who file frivolous petitions to deny may be subject to 
sanctions including monetary forfeitures, license revocation, if they 
are FCC licensees, and may be prohibited from participating in future 
auctions.


Sec. 27.321  Mutually exclusive applications.

    (a) Two or more pending applications are mutually exclusive if the 
grant of one application would effectively preclude the grant of one or 
more of the others under the Commission's rules governing the Wireless 
Communications Services involved. The Commission uses the general 
procedures in this section for processing mutually exclusive 
applications in the Wireless Communications Services.
    (b) An application will be entitled to comparative consideration 
with one or more conflicting applications only if the Commission 
determines that such comparative consideration will serve the public 
interest.


Sec. 27.322  Consideration of applications.

    (a) Applications for an instrument of authorization will be granted 
if, upon examination of the application and upon consideration of such 
other matters as it may officially notice, the Commission finds that 
the grant will serve the public interest, convenience, and necessity. 
See also Sec. 1.2108 of this chapter.
    (b) The grant shall be without a formal hearing if, upon 
consideration of the application, any pleadings or objections filed, or 
other matters which may be officially noticed, the Commission finds 
that:
    (1) The application is acceptable for filing, and is in accordance 
with the Commission's rules, regulations, and other requirements;
    (2) The application is not subject to a post-auction hearing or to 
comparative consideration pursuant to Sec. 27.322 with another 
application(s);
    (3) The applicant certifies that the operation of the proposed 
facility would not cause harmful electromagnetic interference to 
another authorized station;
    (4) There are no substantial and material questions of fact 
presented; and
    (5) The applicant is qualified under current FCC regulations and 
policies.
    (c) If the Commission should grant without a formal hearing an 
application for an instrument of authorization which is subject to a 
petition to deny filed in accordance with Sec. 27.319, the Commission 
will deny the petition by the issuance of a concise statement for the 
reason(s) for the denial and dispose of all substantial issues raised 
by the petition.
    (d) Whenever the Commission, without a formal hearing, grants any 
application in part, or subject to any terms or conditions other than 
those normally applied to applications of the same type, it shall 
inform the applicant of the reasons therefor, and the grant shall be 
considered final unless the Commission should revise its action (either 
by granting the application as originally requested, or by designating 
the application for a formal evidentiary hearing) in response to a 
petition for reconsideration which:
    (1) Is filed by the applicant within thirty (30) days from the date 
of the letter or order giving the reasons for the partial or 
conditioned grant;
    (2) Rejects the grant as made and explains the reasons why the 
application should be granted as originally requested; and,
    (3) Returns the instrument of authorization.
    (e) The Commission will designate an application for a formal 
hearing, specifying with particularity the matters and things in issue, 
if, upon consideration of the application, any pleadings or objections 
filed, or other matters which may be officially noticed, the Commission 
determines that:
    (1) A substantial and material question of fact is presented (see 
also section 1.2108 of this chapter);
    (2) The Commission is unable for any reason to make the findings 
specified in paragraph (a) of this section and the application is 
acceptable for filing, complete, and in accordance with the 
Commission's rules, regulations, and other requirements; or
    (3) The application is entitled to concurrent consideration (under 
section 27.321) with another application (or applications).
    (f) The Commission may grant, deny or take other action with 
respect to an application designated for a formal hearing pursuant to 
paragraph (e) of this section or part 1 of this chapter.
    (g) Reconsideration or review of any final action taken by the 
Commission will be in accordance with part 1, subpart A of this 
chapter.


Sec. 27.323  [Reserved]


Sec. 27.324  Transfer of control or assignment of station 
authorization.

    (a) Authorizations shall be transferred or assigned to another 
party, voluntarily (for example, by contract) or involuntarily (for 
example, by death, bankruptcy, or legal disability), directly or 
indirectly or by transfer of control of any corporation holding such 
authorization, only upon application and approval by the Commission. A 
transfer of control or assignment of station authorization in the 
Wireless Communications Service is also subject to section 27.209.
    (1) A change from less than 50% ownership to 50% or more ownership 
shall always be considered a transfer of control.
    (2) In other situations a controlling interest shall be determined 
on a case-

[[Page 9673]]

 by-case basis considering the distribution of ownership, and the 
relationships of the owners, including family relationships.
    (b) Form required:
    (1) Assignment.
    (i) FCC Form 490 shall be filed to assign a license or permit.
    (ii) In the case of involuntary assignment, FCC Form 490 shall be 
filed within 30 days of the event causing the assignment.
    (2) Transfer of control.
    (i) FCC Form 490 shall be submitted in order to transfer control of 
a corporation holding a license or permit.
    (ii) In the case of involuntary transfer of control, FCC Form 490 
shall be filed within 30 days of the event causing the transfer.
    (3) Notification of completion. The Commission shall be notified by 
letter of the date of completion of the assignment or transfer of 
control.
    (4) If the transfer of control of a license is approved, the new 
licensee is held to the original renewal requirement of Sec. 27.14.
    (c) In acting upon applications for transfer of control or 
assignment, the Commission will not consider whether the public 
interest, convenience, and necessity might be served by the transfer or 
assignment of the authorization to a person other than the proposed 
transferee or assignee.
    (d) Applicants seeking to transfer their licenses within three 
years after the initial license grant date are required to file, 
together with their transfer application, the associated contracts for 
sale, option agreements, management agreements, and all other documents 
disclosing the total consideration to be received in return for the 
transfer of the license.
    (e) Partial assignment of authorization. If the authorization for 
some, but not all, of the facilities of a Wireless Communications 
Service station is assigned to another party, voluntarily or 
involuntarily, such action is a partial assignment of authorization.
    (f) To request FCC approval of a partial assignment of 
authorization, the following must be filed in addition to the forms 
required by paragraph (b) of this section:
    (g) The assignee must apply for authority (FCC Form 600) to operate 
a new station including the facilities for which authorization is 
assigned, or to modify the assignee's existing station to include the 
facilities for which authorization was assigned.


Sec. 27.325  Termination of authorization.

    (a) All authorizations shall terminate on the date specified on the 
authorization, unless a timely application for renewal has been filed.
    (b) If no application for renewal has been made before the 
authorization's expiration date, a late application for renewal will 
only be considered if it is filed within 30 days of the expiration date 
and shows that the failure to file a timely application was due to 
causes beyond the applicant's control. Service to subscribers need not 
be suspended while a late filed renewal application is pending, but 
such service shall be without prejudice to Commission action on the 
renewal application and any related sanctions. See also Sec. 27.14 
(Criteria for Comparative Renewal Proceedings).
    (c) Special Temporary Authority. A special temporary authorization 
shall automatically terminate upon failure to comply with the 
conditions in the authorization.

PART 97--AMATEUR RADIO SERVICE

    1. The authority citation for part 97 continues to read as follows:

    Authority: 48 Stat. 1066, 1082, as amended; 47 U.S.C. 154, 303. 
Interpret or apply 48 Stat. 1064-1068, 1081-1105, as amended; 47 
U.S.C. 151-155, 301-609, unless otherwise noted.

    2. Section 97.303(j) is revised to read as follows:


Sec. 97.303  Frequency sharing requirements.

* * * * *
    (j) In the 13 cm band:
    (1) The amateur service is allocated on a secondary basis in all 
ITU Regions. In ITU Region 1, no amateur station shall cause harmful 
interference to, and shall be not protected from interference due to 
the operation of, stations authorized by other nations in the fixed and 
mobile services. In ITU Regions 2 and 3, no amateur station shall cause 
harmful interference to, and shall not be protected from interference 
due to the operation of, stations authorized by other nations in the 
fixed, mobile and radiolocation services.
    (2) In the United States:
    (i) The 2300-2305 MHz segment is allocated to the amateur service 
on a secondary basis. (Currently the 2300-2305 MHz segment is not 
allocated to any service on a primary basis.);
    (ii) The 2305-2310 MHz segment is allocated to the amateur service 
on a secondary basis to the fixed, mobile, and radiolocation services;
    (iii) The 2390-2400 MHz segment is allocated to the amateur service 
on a primary basis; and
    (iv) The 2400-2402 MHz segment is allocated to the amateur service 
on a secondary basis. (Currently the 2400-2402 MHz segment is not 
allocated to any service on a primary basis.) The 2402-2417 MHz segment 
is allocated to the amateur service on a primary basis. The 2417-2450 
MHz segment is allocated to the amateur service on a co-secondary basis 
with the Government radiolocation service. Amateur stations operating 
within the 2400-2450 MHz segment must accept harmful interference that 
may be caused by the proper operation of industrial, scientific, and 
medical devices operating within the band.

[FR Doc. 97-5128 Filed 2-28-97; 8:45 am]
BILLING CODE 6712-01-P