[Federal Register Volume 62, Number 134 (Monday, July 14, 1997)]
[Proposed Rules]
[Pages 37533-37537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18292]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 80

[PR Docket No. 92-257; FCC 97-217]


Maritime Communications

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: The Commission has adopted a Second Further Notice of Proposed 
Rule Making in PR Docket No. 92-257 which seeks to simplify the 
licensing process and introduce additional flexibility for public coast 
stations. Specifically, the Commission has proposed rules to designate 
geographic licensing regions for very high frequency (VHF) public coast 
stations, and assign all currently unassigned VHF public correspondence 
channels on a geographic basis by competitive bidding. The Commission 
has proposed rules to eliminate the required channel loading showing 
for high seas public coast stations, and implement competitive bidding 
procedures for mutually exclusive initial applications on a case-by-
case basis; and to eliminate

[[Page 37534]]

the current emission restrictions and channel plan, increase the 
permitted power levels for point-to-point communications, and 
streamline licensing procedures for Automated Maritime 
Telecommunications System (AMTS) coast stations. The Commission also 
seeks comment on allowing private coast stations to share public coast 
station frequencies in the medium frequency (MF) and high frequency 
(HF) bands.

DATES: Interested parties may file comments on or before August 25, 
1997, and reply comments on or before September 9, 1997.

ADDRESSES: Federal Communications Commission, 1919 M St., N.W., 
Washington, D.C. 20554.

FOR FURTHER INFORMATION CONTACT: Scot Stone, Wireless 
Telecommunications Bureau, Public Safety & Private Wireless Division, 
(202) 418-0638 or via E-mail to ``[email protected]''.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second 
Further Notice of Proposed Rule Making in the Second Report and Order 
and Second Further Notice of Proposed Rule Making, PR Docket No. 92-
257, FCC 97-217, adopted June 17, 1997, and released June 26, 1997, 
with Commissioner Ness issuing a statement. The full text of this 
Second Report and Order and Second Further Notice of Proposed Rule 
Making 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. The complete text may be purchased from the 
Commission's copy contractor, International Transcription Services, 
2100 M Street, N.W., Washington, D.C. 20037, telephone (202) 857-3800. 
Summary of the Second Further Notice of Proposed Rule Making in the 
Second Report and Order and Second Further Notice of Proposed Rule 
Making
    1. The Commission initiated the instant proceeding to update the 
Maritime Service rules to promote the use of new, spectrally efficient 
radio communications techniques. The Commission concluded in the Second 
Further Notice of Proposed Rule Making that it was in the public 
interest to simplify the license process for VHF public coast stations 
and to reconsider its treatment of high seas and AMTS public coast 
stations.
    2. First, the Commission proposes to designate ten licensing 
regions, based on Coast Guard Districts, and authorize a single 
licensee for all currently unassigned VHF public correspondence 
channels on a geographic basis, in lieu of the site-based approach 
presently used. Geographic area licensing provides significant 
advantages over site-based licensing for entities providing subscriber-
based services because of the greater operational flexibility it gives 
licensees and the greater ease of administration for the Commission. 
Coast Guard Districts provide a sufficient amount of contiguous 
coastline to foster local as well as regional coast station systems, 
and they reflect regional trading and vessel movement patterns.
    3. The Commission proposes to permit the continued operation of 
incumbent VHF public coast station licensees and private land mobile 
radio (PLMR) licensees sharing marine spectrum in inland regions 
indefinitely, and to require incumbents and geographic licensees to 
afford interference protection to one another. Under the proposal, 
incumbent licensees will be allowed to renew, transfer, assign, and 
modify their license in any manner so long as such modifications do not 
extend the incumbent's service area; proposed modifications that would 
extend an incumbent's service area or request additional frequencies 
would be contingent upon an agreement with each affected licensee. If 
an incumbent fails to construct, discontinues operations, or otherwise 
has its license terminated, its authorization would automatically 
revert to the regional licensee.
    4. The Commission proposes to authorize a single regional licensee 
to operate on all unassigned public correspondence frequencies within 
its District for a ten-year license term. The Commission proposes to 
permit each regional licensee to place stations anywhere within its 
region to serve vessels or units on land, so long as marine-originating 
traffic is given priority and incumbent operations are protected. Base 
stations and land units would be blanket licensed under the regional 
license, except that individual licensing would be required for base 
stations that require submission of an Environmental Assessment under 
47 CFR 1.1307 or international coordination, or would affect the radio 
frequency quiet zones described in 47 CFR 80.21.
    5. The Commission seeks comment on whether the current construction 
requirement for VHF public coast stations (i.e., that the station be 
placed in operation within eight months of the license grant) should be 
retained, or replaced with a requirement that the station provide 
substantial service within ten years (or some lesser level of service 
within a shorter time). The Commission proposes to permit partitioning 
and disaggregation of the geographic licenses, with partitionees and 
disaggregatees to hold their licenses for the remainder of the original 
licensee's term and to have a renewal expectancy.
    6. Second, the Commission proposes to eliminate the required 
showing of channel loading for high seas public coast stations. Like 
the now-eliminated VHF band loading criteria, these requirements were 
intended to prevent channel warehousing and ensure efficient use of the 
maritime spectrum, but continuing to impose loading requirements on 
high seas public coast stations could unfairly impair the ability of 
providers to compete. Efficient use of high seas public coast station 
spectrum is more appropriately monitored through construction 
requirements. The Commission proposes extending the construction 
requirement from eight months to twelve months.
    7. Third, the Commission proposes to introduce additional 
flexibility for AMTS coast stations. The Commission proposes extending 
the construction requirement from eight months to two years for new 
systems and from eight months to one year for subsequently licensed 
stations that extend the geographic area served by the system; and 
eliminating the current emission restrictions and channel plan. The 
Commission seeks comments concerning ways to streamline licensing and 
regulatory procedures while continuing to protect television reception 
from interference, and concerning increasing the permitted power levels 
for AMTS point-to-point communications.
    8. Fourth, the Commission proposes to use competitive bidding 
procedures to resolve mutually exclusive initial applications for VHF 
geographic licenses and for high seas and AMTS public coast station 
licenses, in light of its previous determination that public coast 
stations provide a commercial mobile radio service and, thus, public 
coast station licenses are auctionable, pursuant to 47 U.S.C. 309(j). 
The Commission seeks comments regarding the establishment of a ``small 
business'' definition for the public coast service, and on what small 
business provisions, i.e., installment payment plans and bidding 
credits, should be offered to public coast small business applicants.
    9. Finally, the Commission proposes allowing private coast stations 
to share public coast station frequencies in the MF/HF bands, and seeks 
comments regarding how the channels would be shared and how to resolve 
mutually

[[Page 37535]]

exclusive initial applications for such frequencies.
    10. In order to permit the orderly and effective resolution of the 
issues in this proceeding, the Second Further Notice of Proposed Rule 
Making suspends the acceptance of public coast station applications to 
use VHF spectrum, and PLMR applications proposing to share that 
spectrum, for new licenses, amendments to such new license 
applications, applications to modify existing licenses, and amendments 
thereto; except applications involving renewals, transfers, 
assignments, and modifications that propose neither to expand a 
station's service area nor to obtain additional public coast VHF band 
spectrum. This suspension applies to applications received on or after 
June 17, 1997, and is effective until March 17, 1998, provided that the 
Commission has not taken any action in this proceeding before that 
time.
    11. Public coast station applications to use VHF spectrum that were 
filed prior to the deadline stated above and which are pending will be 
processed provided that they are not mutually exclusive with other 
applications as of the deadline stated above, and the relevant period 
for filing competing applications has expired as of the deadline stated 
above. Previously filed public coast station applications to use public 
coast VHF spectrum not meeting these criteria will be held in abeyance 
until the conclusion of this proceeding. Previously filed PLMR 
applications to use such spectrum will be processed.

Regulatory Flexibility Act

Initial Regulatory Flexibility Analysis

    12. As required by Section 603 of the Regulatory Flexibility Act, 5 
U.S.C. 603, the Commission has prepared an Initial Regulatory 
Flexibility Analysis (IRFA) of the expected impact on small entities of 
the policies and rules proposed in the Second Further Notice of 
Proposed Rule Making. 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 this Second Further Notice of 
Proposed Rule Making provided in the item.
    13. Need for and Objectives of the Proposed Rule. The purpose of 
this item is to determine whether it is in the public interest, 
convenience, and necessity to amend our rules to simplify our licensing 
process for VHF public coast stations, to reconsider our treatment of 
high seas public coast stations, and to introduce additional 
flexibility for AMTS public coast stations. These proposals include: 
(1) Converting licensing of VHF public coast station 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 VHF 
public coast spectrum licensing procedures and rules, (3) increasing 
licensee flexibility to provide communication services that are 
responsive to dynamic market demands, and (4) employing competitive 
bidding procedures (auctions) to resolve mutually exclusive 
applications for public coast spectrum for which the principal use will 
involve, or is reasonably likely to involve, ``subscriber-based'' 
services. In addition, we temporarily suspend the acceptance and 
processing of certain public coast spectrum applications, with the 
exception of applications in a few noted categories. These proposed 
rules and actions should increase the number and types of 
communications services available to the maritime community. 
Additionally, these proposals should improve safety of life and 
property at sea.
    14. Legal Basis. Authority for issuance of this item is contained 
in Sections 4(i), 4(j), 7(a), 302, 303(b), 303(f), 303(g), 303(r), 
307(e), 332(a), and 332(c) of the Communications Act of 1934, as 
amended, 47 U.S.C. 154(i), 154(j), 157(a), 303(b), 303(f), 303(g), 
303(r), 307(e), 332(a), and 332(c).
    15. Description and Estimate of the Number of Small Entities to 
Which Rule Will Apply. The proposed rules would affect licensees using 
public coast spectrum. The Commission has not developed a definition of 
the term ``small entity'' specifically applicable to public coast 
station licensees. Therefore, the applicable definition of small entity 
is the definition under the Small Business Administration rules 
applicable to radiotelephone service providers. This definition 
provides that a small entity is any entity employing less than 1,500 
persons. See 13 CFR 121.201, Standard Industrial Classification (SIC) 
Code 4812. Since the Regulatory Flexibility Act amendments were not in 
effect until the record in this proceeding was closed, the Comission 
was unable to request information regarding the number of small 
entities that may choose to provide public coast services and is unable 
at this time to make a meaningful estimate of the number of potential 
public coast service providers which are small businesses.
    16. The size data provided by the Small Business Administration 
does not enable us to make a meaningful estimate of the number of 
public coast station licensees which are small businesses. Therefore, 
we used the 1992 Census of Transportation, Communications, and 
Utilities, conducted by the Bureau of Census, which is the most recent 
information available. This document shows that only 12 radiotelephone 
firms out of a total of 1,178 such firms which operated during 1992 had 
1,000 or more employees.
    17. We seek comment on the number of small entities that use public 
coast station spectrum. Further, we seek comment on the number of small 
entities that are likely to apply for licenses under the various 
proposals described herein. Because any entity that is capable of 
providing radiotelephone service is eligible to hold a public coast 
license, the proposals herein could prospectively affect any small 
business in the United States. In other words, the universe of 
prospective or possible public coast spectrum users is all small 
businesses.
    18. Reporting, Recordkeeping, and Other Compliance Requirements. 
Again, we note that we have requested comment regarding the 
establishment of a small business definition for public coast spectrum. 
If we use competitive bidding to award licenses, as proposed, and also 
establish a small business definition for the purpose of competitive 
bidding, then all small businesses that choose to participate in these 
services will be required to demonstrate that they meet the criteria 
set forth to qualify as small businesses, as required under part 1, 
subpart Q of the Commission's Rules, 47 CFR part 1, subpart Q. 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.
    19. 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

[[Page 37536]]

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) 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 system's design.
    20. Federal Rules That May Duplicate, Overlap, or Conflict with the 
Proposals. None.
    21. Significant Alternatives Minimizing the Impact on Small 
Entities Consistent with the Stated Objectives. The NPRM solicits 
comment on a variety of alternatives set forth herein. 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 the public coast service. We also seek comment generally 
on the existence of small entities in the public coast service 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 the SBA definition of 
employing fewer than 1,500 employees.
    22. IRFA Comments. We request written public comment on the 
foregoing IRFA. Comments must have a separate and distinct heading 
designating them as responses to the IRFA and must be filed by the 
deadlines provided in the item.

Ex Parte Rules

    23. This is a non-restricted notice and comment rulemaking 
proceeding. Ex parte presentations are permitted except during the 
Sunshine Agenda period, provided they are disclosed as provided in the 
Commission's rules. See generally 47 CFR 1.1202, 1.1203, 1.1206(a).

Paperwork Reduction Act

    24. This Second Further Notice of Proposed Rule Making does not 
contain either a proposed or modified information collection.

Comment Filing Procedures

    25. To file formally in this proceeding, you must file an original 
and four copies of all comments, reply comments, and supporting 
comments. If you want each Commissioner to receive a personal copy of 
your comments, you must file an original plus nine copies. You should 
send comments and reply comments to the Office of the Secretary, 
Federal Communications Commission, Washington, D.C. 20554. You also may 
file informal comments by electronic mail. You should address informal 
comments to ``[email protected]''. You must put the docket number of this 
proceeding (``PR Docket No. 92-257'') on the subject line. 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 FCC Reference Center of the Federal Communications Commission, 
Room 239, 1919 M Street, N.W., Washington, D.C. 20554.

List of Subjects in 47 CFR Part 80

    Communications equipment, Radio, Vessels.

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

Rule Changes

    47 CFR Part 80 is proposed to be amended as follows:

PART 80--STATIONS IN THE MARITIME SERVICES

    1. The authority citation for Part 80 continues to read as follows:

    Authority: Secs. 4, 303, 48 Stat. 1066, 1082, as amended; 47 
U.S.C. 154, 303, unless otherwise noted. Interpret or apply 48 Stat. 
1064-1068, 1081-1105, as amended; 47 U.S.C. 151-155, 301-609; 3 UST 
3450, 3 UST 4726, 12 UST 2377.

    2. Section 80.25(b) is revised to read as follows:


Sec. 80.25  License term.

* * * * *
    (b) Licenses other than ship stations in the maritime services will 
normally be issued for a term of ten years from the date of original 
issuance, major modification, or renewal.
* * * * *
    3. Section 80.49 is revised to read as follows:


Sec. 80.49  Construction and regional service requirements.

    (a) Public coast stations. Each VHF public coast station licensee 
must demonstrate that it is providing substantial service within its 
region or service area (subpart P) within ten years of the initial 
license grant. For LF, MF, and HF band and AMTS public coast station 
licensees, when a new license has been issued or additional operating 
frequencies have been authorized, if the station or frequencies 
authorized have not been placed in operation within twelve months from 
the date of the grant, the authorization becomes invalid and must be 
returned to the Commission for cancellation.
    (b) Public fixed stations. When a new license has been issued or 
additional operating frequencies have been authorized, if the station 
or frequencies authorized have not been placed in operation within 
twelve months from the date of the grant, the authorization becomes 
invalid and must be returned to the Commission for cancellation.
    4. Section 80.215(h)(5) is revised to read as follows:


Sec. 80.215  Transmitter power.

* * * * *
    (h) * * *
    (5) The transmitter power, as measured at the input terminals to 
the station antenna, must be 50 watts or less.
* * * * *
    5. Section 80.303(b) is revised to read as follows:


Sec. 80.303  Watch on 156.800 MHz (Channel 16).

* * * * *
    (b) A coast station is exempt, by rule, from compliance with the 
watch requirement when Federal, State, or Local Government stations 
maintain a watch on 156.800 MHz over 95% of the coast station's service 
area. Each licensee exempted by rule must notify the appropriate Coast 
Guard District office at least thirty days prior to discontinuing the 
watch, or in the case of new stations, at least thirty days prior to 
commencing service.
* * * * *
    6. Section 80.357(b)(2)(ii) introductory text is revised to read as 
follows:


Sec. 80.357  Morse code working frequencies.

* * * * *
    (b) * * *
    (2) * * *
    (ii) Frequencies above 5 MHz may be assigned primarily to stations 
serving the high seas and secondarily to stations serving inland waters 
of the United States, including the Great Lakes, under the condition 
that interfrence will not be caused to any coast station serving the 
high seas.
* * * * *


Sec. 80.361  [Amended]

    7. Section 80.361 is amended by redesignating paragraph (a)(1) as 
paragraph (a) and removing paragraph (a)(2).

[[Page 37537]]

    8. Section 80.371 is amended by removing paragraph (b)(4) and 
revising paragraph (c) introductory text to read as follows:


Sec. 80.371  Public correspondence frequencies.

* * * * *
    (c) Working frequencies in the marine VHF 156-162 MHz band. The 
frequency pairs listed below are available for assignment to a single 
licensee in each of the following ten regions: the First, Fifth, 
Seventh, Eighth, Ninth, Eleventh, Thirteenth, Fourteenth, and 
Seventeenth United States Coast Guard Districts, as they are defined in 
33 CFR part 3. Each regional licensee may place stations anywhere 
within its region so long as it provides protection to co-channel 
incumbent licensees, as defined in subpart P. For purposes of this 
section, co-channel incumbent licensees include public coast stations 
and Industrial and Land Transportation stations authorized under part 
90 of this chapter on a primary basis. Each regional licensee may also 
operate on offset frequencies in areas where the regional licensee is 
authorized on both frequencies adjacent to the offset frequency. 
Regional licensees that share a common border may either distribute the 
available frequencies upon mutual agreement or request that the 
Commission assign frequencies along the common border. Operation along 
international borders is subject to coordination with foreign 
administrations.
* * * * *


Sec. 80.374  [Amended]

    9. Section 80.374 is amended by removing paragraph (a) and 
redesignating paragraphs (b) and (c) as paragraphs (a) and (b).
    10. Section 80.481 is added to read as follows:


Sec. 80.481  Alternative technical parameters for AMTS transmitters.

    In lieu of the technical parameters set forth in this part, AMTS 
transmitters may utilize any modulation or channelization scheme so 
long as emissions are attenuated, in accordance with 47 CFR 80.211, at 
the band edges of each station's assigned channel group or groups.

[FR Doc. 97-18292 Filed 7-11-97; 8:45 am]
BILLING CODE 6712-01-P