[Federal Register Volume 62, Number 48 (Wednesday, March 12, 1997)]
[Proposed Rules]
[Pages 11407-11410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6166]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 22 and 101
[WT Docket No. 97-81, FCC 97-58]


Multiple Address Systems

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: This Notice of Proposed Rule Making (NPRM) proposes to amend 
the Commission's rules in order to streamline licensing procedures and 
provide additional flexibility for Multiple Address Systems (MAS) 
licensees. These proposals were adopted as part of the Commission's 
continuing effort to establish a flexible regulatory framework for 
spectrum allocations. The effects of these proposals would be to 
maximize the use of radio frequency spectrum allocated to MAS.

DATES: Comments are due on or before April 21, 1997. Reply comments are 
due on or before May 6, 1997.

ADDRESSES: You must send comments and reply comments to the Office of 
the Secretary, Federal Communications Commission, Washington, DC 20554. 
You may also file informal comments by electronic mail. You should 
address informal comments to [email protected]. You must put the docket 
number of this proceeding on the subject line (``WT Docket No. 97-
81''). You must also include your full name and Postal Service mailing 
address in the text of the message. Comments on the information 
collections contained herein should be submitted to Dorothy Conway, 
Federal Communications Commission, Room 234, 1919 M Street, NW., 
Washington, DC 20554, or via the internet to [email protected], and to 
Timothy Fain, OMB Desk Officer, 10236 NEOB, 725-17th Street, NW., 
Washington, DC 20503 or via the internet to [email protected].

FOR FURTHER INFORMATION CONTACT: Bob James of the Commission's Wireless 
Telecommunications Bureau at (202)

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418-0680 or via email at [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's NPRM, 
FCC 97-58, adopted February 19, 1997, and released February 27, 1997. 
The full text of this NPRM is available for inspection and copying 
during normal business hours in the FCC Reference Center (Room 239), 
1919 M Street, NW., Washington, DC. The complete text may be purchased 
from the Commission's copy contractor, ITS, Inc., 2100 M Street NW., 
Suite 140, Washington, DC 20037, telephone (202) 857-3800.

Paperwork Reduction Act

    This NPRM contains either a proposed or modified information 
collection. As part of the Commission's continuing effort to reduce 
paperwork burdens, we invite the general public, the Office of 
Management and Budget (OMB), and other agencies to take this 
opportunity to comment on the information collections contained in this 
NPRM, as required by the Paperwork Reduction Act of 1995, Public Law 
104-13. Public and agency comments are due at the same time as other 
comments on this NPRM; OMB comments are due 60 days after the 
publication of this NPRM in the Federal Register. Comments should 
address: (a) Whether the proposed collection of information is 
necessary for the proper performance of the functions of the 
Commission, including whether the information shall have practical 
utility; (b) the accuracy of the Commission's burden estimates; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (d) ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology.

Summary of Notice

    1. This NPRM seeks to further the development and implementation of 
MAS. Accordingly, this NPRM tentatively concludes that the 932/941 MHz 
and 928/959 MHz MAS bands should be designated for subscriber-based 
services and licensed on a geographic basis, with service areas based 
on the U.S. Department of Commerce's Economic Areas. In this vein, 
licensees providing such subscriber-based services would be presumed 
telecommunications carriers and would be required to meet liberal 
construction/coverage requirements with their service areas. Further, 
the Commission proposes to resolve mutually exclusive applications for 
the 932/941 MHz and 928/959 MHz MAS licenses through competitive 
bidding.
    2. In contrast to the subscriber-based services discussed above, 
this NPRM tentatively concludes that the 928/952/956 MHz MAS bands 
should be designated exclusively for private use and seeks comment on 
whether these bands should continue to be licensed on a site-by-site 
basis or should be licensed on a geographic basis. The Commission also 
proposes to set aside five channel pairs in the 932/941 MHz MAS bands, 
to be licensed on a first-come, first-served basis, for Federal 
Government/Public Safety communications.
    3. This NPRM also seeks to further the development of MAS by 
reducing regulatory burdens and increasing flexibility for all MAS 
licensees. For example, the Commission proposes to simplify and 
streamline the MAS licensing process. The Commission also proposes to 
increase operational flexibility by allowing MAS licensees to provide 
mobile and fixed operations on a co-primary basis with point-to-point 
and point-to-multipoint operations. Further, the Commission seeks 
comment on whether 12.5 kHz or larger blocks of spectrum should be 
available to MAS licensees in order to broaden the range of 
communications services possible using MAS spectrum.
    4. Finally, effective February 19, 1997, this NPRM suspends the 
acceptance and processing of MAS applications in the 932/941 MHz and 
928/959 MHz bands, and subscriber-based MAS applications in the 928/
952/956 MHz bands, except certain pending applications, applications 
for minor modifications, and applications for license assignment or 
transfer of control, during the pendency of this rule making. This 
suspension, however, does not affect MAS applications for private, 
internal communications in the 928/952/956 MHz bands.
    5. This is a non-restricted notice and comment rule making 
proceeding. Ex Parte presentations are permitted, except during the 
Sunshine Agenda period, provided they are disclosed as provided in 
Commission rules. See generally 47 CFR 1.1202, 1.1203, and 1.1206(a).
    6. Pursuant to applicable procedures set forth in Sections 1.415 
and 1.419 of the Commission's Rules, 47 CFR 1.415 and 1.419, interested 
parties may file comments on or before April 21, 1997, and reply 
comments on or before May 6, 1997. To file formally in this proceeding, 
you must file an original and four copies of all comments, reply 
comments, and supporting comments. If you want each Commissioner to 
receive a personal copy of your comments, you must file an original 
plus nine copies. You must send comments and reply comments to Office 
of the Secretary, Federal Communications Commission, Washington, DC 
20554. You may also file informal comments by electronics mail. You 
should address informal comments to [email protected]. You must put the 
docket number of the proceeding on the subject line (``WT Docket No. 
97-81''). You must also include your full name and Postal Service 
mailing address in the text of the message. Formal and informal 
comments and reply comments will be available for public inspection 
during regular business hours in the F.C.C. Reference Center of the 
Federal Communications Commission, Room 239, 1919 M Street, NW., 
Washington, DC 20554.
    7. Authority for issuance of this NPRM is contained in Sections 
4(i), 303(r), and 309(j) of the Communications Act of 1934, as amended, 
47 U.S.C. 154(i), 303(r), and 309(j).

List of Subjects

47 CFR Part 22

    Communications common carriers, Radio, Reporting and recordkeeping 
requirements.

47 CFR Part 101

    Radio, Reporting and recordkeeping requirements.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
    Note:This attachment will not be published in the Code of 
Federal Regulations.

Attachment

Initial Regulatory Flexibility Analysis

    1. Pursuant to the Regulatory Flexibility Act (RFA), see 5 
U.S.C. 603, the Commission has prepared this Initial Regulatory 
Flexibility Analysis (IRFA) of the expected impact on small entities 
of the policies and rules proposed in this NPRM. Written public 
comments are requested on the IRFA. Comments must be identified as 
responses to the IRFA and must be filed by the deadlines for 
comments on the NPRM. The Secretary shall cause a copy of this NPRM 
to be sent to the Chief counsel for Advocacy of the Small Business 
Administration, in accordance with 5 U.S.C. 603(a).

A. Reason for Action

    2. This NPRM requests public comment on our proposals to 
maximize the use of spectrum allocated to Multiple Address Systems 
in the Microwave Service. These proposals include: (1) Converting 
licensing of MAS spectrum for which the principal use will involve, 
or is reasonably likely to involve, ``subscriber-based'' services, 
from site-by-site licensing to geographic area licensing, (2) 
simplifying and streamlining the MAS licensing procedures and rules, 
(3) increasing licensee flexibility to provide

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communication services that are responsive to dynamic demands, and 
(4) employing competitive bidding procedures (auctions) to resolve 
mutually exclusive applications for MAS spectrum for which the 
principal use will involve, or is reasonably likely to involve, 
``subscriber-based'' services, In addition, by this NPRM we 
temporarily suspend the acceptance and processing of MAS 
applications, with the exception of applications in a few noted 
categories.

B. Objectives

    3. In attempting to maximize the use of MAS spectrum, we 
continue our efforts to establish a flexible regulatory framework 
for spectrum allocations that will, among other things, provide 
opportunities for continued development of competitive new service 
offerings by allowing flexible use of spectrum, expedite market 
entry through modified licensing procedures, and promote 
technological innovation by eliminating unnecessary regulatory 
burdens.

C. Legal Basis

    4. The authority for this action is contained in Sections 4(i), 
303(r), and 309(j) of the Communications Act of 1934, as amended, 47 
U.S.C. 154(i), 303(r), and 309(j). See also Administrative Procedure 
Act, 5 U.S.C. Sec. 553.

D. Description and Estimate of Small Entities Affected

    5. Pursuant to the Contract with America Advancement Act of 
1996, Public Law 104-121, 110 Stat. 847 (1996), the Commission is 
required to estimate in its Final Regulatory Flexibility Analysis 
the number of small entities to which a rule will apply, provide a 
description of such entities, and assess the impact of the rule on 
such entities. The Regulatory Flexibility Act defines a ``small 
business'' to be the same as a ``small business concern'' under the 
Small Business Act unless the Commission has developed one or more 
definitions that are appropriate to its activities. Under the Small 
Business Act, a ``small business concern'' is one that: (1) Is 
independently owned and operated; (2) is not dominant in its field 
of operation; and (3) meets any additional criteria established by 
the Small Business Administration (SBA). To assist the Commission in 
this analysis, commenters are requested to provide information 
regarding how many MAS entities, total, would be affected by the 
various proposals on which the Commission seeks comment in this 
NPRM. In particular, we seek estimates of how many affected entities 
will be considered ``small businesses.'' In this regard, we ask 
commenters to note that we have requested comment regarding the 
establishment of a small business definition for MAS for the purpose 
of competitive bidding.
    6. The proposals in the NPRM would effect MAS licensees and 
applicants for licenses. Such entities fall into two categories: (1) 
Those using MAS spectrum for which the principal use involves, will 
involve, or is reasonably likely to involve, ``subscriber-based'' 
(commercial) services, and (2) those using, or intending to use, MAS 
spectrum to provide for their own internal communications needs. 
Theoretically, it is also possible that an entity could fall into 
both categories. The spectrum uses in the two categories differ 
markedly.
    7. With respect to the first category, neither the Commission 
nor the Small Business Administration (SBA) has developed a specific 
definition of small entities applicable to MAS licensees that 
provide commercial subscription services. The applicable definition 
of small entity in this instance appears to be the definition under 
the SBA rules applicable to establishments engaged in radiotelephone 
communications. This definition provides that a small entity is any 
entity employing fewer than 1,500 persons. See 13 CFR 121.201, 
Standard Industrial Classification (SIC) Code 4812. The 1992 Census 
of Transportation, Communications and Utilities, conducted by the 
Bureau of the Census, which is the most recent information 
available, shows that only 12 radiotelephone firms out of a total of 
1,178 such firms operated during 1992 had 1,000 or more employees. 
Therefore, whether or not any or all of these 12 firms are MAS 
commercial service providers, nearly all MAS commercial service 
providers are small businesses by the Small Business 
Administration's definition. The Commission's licensing database 
indicates that, as of November 8, 1996, there were a total of 8,171 
MAS station authorizations. Of these, 1087 authorizations were for 
common carrier service.
    8. Alternatively, under the SBA rules, the applicable definition 
of small entity for MAS licensees that provide commercial 
subscription services may also be applicable to establishments 
primarily engaged in furnishing telegraph and other message 
communications. This definition provides that a small entity is an 
entity with annual receipts of $5 million or less. See 13 CFR 
121.201, Standard Industrial Classification (SIC) Code 4822. 1992 
Census data, which is the most recent information available, 
indicates that, of the 286 firms under this category, 247 had annual 
receipts of $4.999 million or less. We seek comment on whether the 
appropriate definition for such MAS licensees is SIC Code 4812, SIC 
Code 4822, or both.
    9. The Commission seeks comment on the number of small entities 
that currently provide commercial MAS subscription service, and the 
number of small entities that would anticipate filing applications 
to provide such service under the various proposals described in the 
NPRM. We seek comment on whether we should conclude, for purposes of 
the Final Regulatory Flexibility Analysis in this matter, that all 
MAS commercial communications service providers are small entities.
    10. With respect to the second category, which consist of 
entities that use or seek to use MAS spectrum to provide for their 
own internal communications needs, we note that MAS serves an 
essential role in a range of industrial, business, land 
transportation, and public safety activities. These radios are used 
by companies of all sizes operating in virtually all U.S. business 
categories. Because of the array of users, the Commission has not 
developed (nor would it be possible to develop) a definition of 
small entities specifically applicable to such MAS users. Nor is 
there a precise SBA definition. In this context we again seek 
comment on whether the appropriate definition of small entity under 
the SBA rules is that applicable to radiotelephone companies: any 
entity employing fewer than 1,500 persons. See 13 CFR 121.201, 
Standard Industrial Classification (SIC) Code 4812. Again, 
alternatively, we seek comment on the appropriateness of defining 
such MAS licensees under SIC Code 4822, concerning establishments 
primarily engaged in furnishing telegraph or other message 
communications, or perhaps under both Codes 4812 and 4822. For the 
purpose of determining whether a licensee is a small business as 
defined by the Small Business Administration, each licensee would 
need to be evaluated within its own business area. The Commission's 
licensing database indicates that, as of November 8, 1996, of the 
8,171 total MAS station authorizations, 7,084 authorizations were 
for private radio service, and of these, 426 were for private mobile 
service.
    11. We seek comment on the number of small entities that use MAS 
spectrum for their internal communications needs. Further, we seek 
comment on the number of small entities that are likely to apply for 
licenses, under the various proposals described in the NPRM, to 
obtain spectrum for their own internal communications needs. Because 
any entity engaged in a business or commercial activity is eligible 
to hold an MAS license, the proposals in the NPRM could 
prospectively affect any small business in the United States 
interested in using MAS for its own communications needs. In other 
words, the universe of prospective or possible MAS users includes 
all U.S. small businesses.
    12. The RFA also includes small governmental entities as a part 
of the regulatory flexibility analysis. The definition of a small 
governmental entity is one with populations of fewer than 50,000. 
There are 85,006 governmental entities in the nation. This number 
includes such entities as states, counties, cities, utility 
districts and school districts. There are no figures available on 
what portion of this number has populations of fewer than 50,000. 
However, this number includes 38,978 counties, cities and towns, and 
of those, 37,566, or 96 percent, have populations of fewer than 
50,000. The Census Bureau estimates that this ratio is approximately 
accurate for all governmental entities. Thus, of the 85,006 
governmental entities, we estimate that 96 percent, or 81,600, are 
small entities that may be affected by our rules.
    13. Again, we have requested comment regarding the establishment 
of a refined small business definition for MAS for the purpose of 
competitive bidding. This NPRM does not propose any definition, but 
merely seeks comment on this issue.

E. Reporting, Recordkeeping, and Other Compliance Requirements

    14. If we have competitive bidding to award certain MAS 
licenses, as proposed, and also establish a small business 
definition for the purpose of competitive bidding, then all small 
businesses that choose to participate

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in these services will be required to demonstrate that they meet the 
criteria set forth in quality as small businesses. See generally 47 
CFR Part 1, Subpart Q (competitive bidding proceedings). Any small 
business applicant wishing to avail itself of small business 
provisions will need to make the general financial disclosures 
necessary to establish that the small business is in fact small.
    15. If this occurs, prior to auction each small business 
applicant will be required to submit an FCC Form 175, OMB Clearance 
Number 3060-0600. The estimated time for filling out an FCC Form 175 
is 45 minutes. In addition to filing an FCC Form 175, each applicant 
must submit information regarding the ownership of the applicant, 
any joint venture arrangements or bidding consortia that the 
applicant has entered into, and financial information which 
demonstrates that a small business wishing to qualify for 
installment payments and bidding credits is a small business. 
Applicants that do not have audited financial statements available 
will be permitted to certify to the validity of their financial 
showings. While many small businesses have chosen to employ 
attorneys prior to filing an application to participate in an 
auction, the rules are proposed so that a small business working 
with the information in a bidder information package can file an 
application on its own. When an applicant wins a license, it will be 
required to submit an FCC Form 494 (common carrier) or FCC Form 402 
(private radio), which will require technical information regarding 
the applicant's proposals for providing service. This application 
will require information provided by an engineer who will have 
knowledge of the systems design. (Also, the Commission is currently 
developing a single, consolidated MAS form, FCC Form 415, which will 
eventually supersede both Form 494 and Form 402.)

F. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposals

    16. None.

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

    17. The NPRM solicits comment on a variety of proposals, some of 
which are described below. Any significant alternatives presented in 
the comments will be considered. As noted, we have requested comment 
regarding the establishment of a small business definition for MAS. 
We also seek comment generally on the existence of small entities in 
MAS and how many total entities, existing and potential, would be 
affected by the proposed rules in the NPRM. Finally, we request that 
each commenter identify whether it is a ``small business'' under 
either of the two SBA definitions described supra--either employing 
fewer than 1,500 employees (for radiotelephone communications 
companies) or having annual receipts of $5 million or less (for 
telegraph or other message communications companies).
    18. The Commission expects that licensing subscriber-based MAS 
bands by geographic area, as proposed, will assist small businesses. 
As described supra, such licensing makes expansion of operations 
easier, and this flexibility assists all licenses, including small 
business licensees. We also believe that the proposed EA geographic 
area service area is large enough to support the services 
contemplated while being small enough to be attractive to small 
business entities. The NPRM also proposes a purely private 
allocation for licenses using MAS solely for internal uses. In 
addition, the proposed flexible approach to the build-out of MAS 
systems will assist licensees, including small business licensees, 
in designing and implementing their particular business plans, while 
the partitioning and disaggregation proposals will assist those 
small businesses that might otherwise be unable to acquire a 
``full'' license as currently configured. Finally, we believe that 
the proposed spectrum auction will assist small entities desiring to 
obtain MAS licenses. This approach gets licenses to those most 
likely to use them most effectively. By contrast, when awarding 
licenses by lotteries it is only coincidental when the license is 
awarded to the entity best suited to using the license. Using 
lotteries, therefore, creates uncertainty for all would-be 
licensees, including those that are small business. We seek comment 
on all proposals and alternatives described in the NPRM, and the 
impact that such proposals and alternatives might have on small 
entities.

[FR Doc. 97-6166 Filed 3-11-97; 8:45 am]
BILLING CODE 6712-01-P