[Federal Register Volume 63, Number 183 (Tuesday, September 22, 1998)]
[Rules and Regulations]
[Pages 50538-50539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-25271]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 2

[ET Docket 97-99; FCC 98-155]


Relocation of the Digital Electronic Message Service

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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

SUMMARY: With this Memorandum Opinion and Order, the Commission denies 
Petitions for reconsideration of the Commission's order relocating the 
Digital Electronic Message Service (DEMS) from the 18 GHz band to the 
24 GHz band. In its decision, the Commission rejects petitioners 
arguments that the Commission improperly applied the military and good 
cause exemptions from notice and comment rulemaking, failed to address 
the validity of the under DEMS licenses, failed to specify sufficient 
reason to increase the amount of spectrum allocated for DEMS in the 24 
GHz band and failed to consider the potential use of the 24 GHz band 
for feeder links in conjunction with the Broadcast Satellite Service. 
The Commission also amends Footnote US341 of the U.S. Table of 
Allocations to reflect the current status of relevant radionavigation 
facilities.

EFFECTIVE DATE: November 23, 1998.

FOR FURTHER INFORMATION CONTACT: James Taylor (202) 418-2113 of the 
International Bureau.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Memorandum Opinion and Order in ET Docket No. 97-99; FCC 98-155, 
adopted July 9, 1998 and released July 17, 1998. The complete text of 
this Memorandum Opinion 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, Inc., 1231 20th Street, NW, Washington, DC 20036, telephone: 
202-857-3800, facsimile: 202-857-3805.

Summary of Memorandum Opinion and Order

    1. This Memorandum Opinion and Order denies petitions for 
reconsideration of the Commission's Order, FCC 97-95, 12 FCC Rcd. 4990 
(1997), modifying Commission rules without public notice and comment 
and relocating the Digital Electronic Message Service (DEMS), a 
terrestrial point-to-multipoint microwave service, from the 18.82-18.92 
GHz and 19.16-19.26 GHz bands (18 GHz band) to the 24 GHz band 
(Relocation Order).
    2. In January and March 1997, the National Telecommunications and 
Information Agency (NTIA), acting on behalf of the Department of 
Defense, requested that the Commission protect military satellite 
communications systems operating in the 18 GHz band in the Washington, 
D.C. and Denver, CO areas from interference. NTIA stated that DEMS 
licensees could cause interference to the Government systems and that 
the relocation was essential to fulfill requirements for Government 
military systems to perform satisfactorily. To facilitate a solution to 
the interference problem, NTIA made 400 Megahertz of replacement 
spectrum available at the 24.25-24.45 GHz and 25.05-25.25 GHz bands, 
and suggested that the Commission expeditiously relocate DEMS without 
notice and comment based upon the military and good cause exemptions to 
the Administrative Procedure Act.
    3. Petitioners argue that the Commission improperly applied the 
military and good cause exemptions from notice and comment rulemaking, 
failed to address the validity of the underlying DEMS licenses, failed 
to specify sufficient reason to increase the amount of spectrum 
allocated for DEMS in the 24 GHz band and failed to consider the 
potential use of the 24 GHz band for feeder links in conjunction with 
the Broadcast Satellite Service.
    4. The Commission found that the decision to move all of DEMS from 
the 18 GHz to the 24 GHz band nationwide was within the scope of the 
military exemption to the notice and comment requirement because NTIA, 
on the behalf of DOD, specifically requested that the Commission 
protect government systems and relocate DEMS without notice and 
comment. The Commission found that the exemption encompasses relocation 
actions outside of Washington D.C. and Denver, CO. and that addressing 
the interference problems in those two areas alone would preclude DEMS 
in those areas because it is unlikely that 24 GHz equipment could be 
manufactured at economic prices solely for the Washington, D.C. and 
Denver, CO markets. Additionally, the Commission found that the good 
cause exemption to the APA's notice and comment requirements provides 
an independent source for the Commission's actions in the 18 GHz 
Relocation Order and that the Relocation Order includes a sufficient 
statement of ``good cause.''
    5. WebCel asserts the Commission failed to address issues raised in 
Teledesic's withdrawn pleading, initially filed in September, 1996 but 
withdrawn in March 1997, concerning the status of DEMS licenses now 
relocated to 24 GHz pursuant to the Relocation Order. The Wireless 
Telecommunications Bureau, Enforcement Division, investigated the 
validity of the DEMS licenses issued to DSC and MSI and found no 
violations of DEMS construction and operating requirements.
    6. When the Commission relocated DEMS from the 18 GHz band to the 
24 GHz band, it allocated on a per channel basis four times the amount 
of spectrum at 24 GHz as was allocated at 18 GHz. Petitioners 
challenged this determination, arguing that the Commission's 
assumptions regarding

[[Page 50539]]

typical cell size, service reliability, transmitter power and other 
technical parameters were improper. The Memorandum Opinion and Order 
rejects these technical contentions. Using comparable technology, DEMS 
requires at least four times the amount of spectrum at 24 GHz to 
provide equivalent service due primarily to less favorable radio 
propagation characteristics.
    7. The Relocation Order allocated 5 channel pairs of 40 Megahertz 
(400 Megahertz total) for DEMS at 24 GHz. MWCA asserts the incumbent 
DEMS licensees would have a de facto monopoly because the DEMS 
licensees have, or are requesting, virtually all of the available 
channel pairs in each SMSA. The Memorandum Opinion and Order rejects 
this claim, noting that the relocations did not alter the competitive 
status quo but simply changed the frequency bands at which DEMS 
operates. Further, additional channels remain to be licensed in many 
areas
    8. Several petitioners question whether Section 309(j) of the 
Communications Act requires the Commission to conduct competitive 
bidding for the 24 GHz band. The Commission found that auctions are not 
required, nor in the public interest, with respect to the licenses 
affected by the 18 GHz Relocation Order. The DEMS licensees are 
previously licensed service providers forced to relocate from 18 GHz to 
24 GHz. Consequently, the Commission did not grant the DEMS licensees 
initial licenses but instead modified existing licenses. The Commission 
expects to address separately, through a future notice of proposed 
rulemaking, the disposition by auction of unassigned DEMS spectrum at 
24 GHz.
    9. Finally, at the time of the Relocation Order, the only 
operations in the 24 GHz band in the United States were two 
radionavigation radar facilities operated by the Federal Aviation 
Administration. The facilities, located near Washington, D.C. and 
Newark, New Jersey, were scheduled to be decommissioned January 1, 1998 
and January 1, 2000, respectively. The Relocation Order added U.S. 
Footnote US341 to the U.S. Table of Allocations to protect the FAA 
operation in these two areas until decommissioning. Consistent with 
this schedule, the facility in Washington, D.C. has been decommissioned 
and the decommissioning date for the Newark, New Jersey station has 
been advanced. In order to accurately reflect the current status we 
amend US341 to state:

    Non-Government operations in the 24.25-24.45 GHz band must 
provide protection to the FAA radionavigation radar facility at the 
Newark International Airport, New Jersey, until the facility is 
decommissioned. The Newark radar facility is scheduled to be 
decommissioned by January 1, 1998. Protection will be afforded in 
accordance with criteria developed by the NTIA and FCC.

Ordering Clauses

    10. Accordingly, It is ordered that the Petitions for 
Reconsideration of WebCel Communications, Inc., DirecTV Enterprises, 
Inc. and BellSouth Corporation of the March 14, 1997 Relocation Order 
are denied.
    11. It is further ordered that the Petition for Partial 
Reconsideration filed by the Millimeter Wave Carrier Association, Inc. 
is denied.
    12. It is further ordered that the Petitions for Reconsideration of 
DirecTV Enterprises, Inc. and Bellsouth Corporation of the June 24, 
1997 Modification Order are denied.
    13. It is further ordered that the Applications for Review of 
WebCel Communications, Inc., and Millimeter Wave Carrier Association, 
Inc., of the June 24, 1997 Modification Order are denied.
    14. It is further ordered that the Joint Motion for Leave to File 
Surreply of Digital Services Corporation, Microwave Services Inc. and 
Teligent, L.L.C., ET Docket No. 97-99, is granted and that WebCel 
Communications, Inc., Opposition to Joint Motion for Leave to File 
Surreply, ET Docket No. 97-99, is denied.
    15. It is further ordered that the Motion of WinStar 
Communications, Inc. to withdraw its Petition for Clarification and its 
Reply is granted.
    16. It is further ordered that Teledesic Corporation's request to 
withdraw its Petition to Deny and Determine Status of Licenses, File 
No. 9607682 et. al., is granted.
    17. It is further ordered that the Motions for Expedited Resolution 
filed by Millimeter Wave Carrier Association, Inc. and WebCel 
Communications, Inc., ET Docket No. 97-99, are dismissed.

List of Subjects in 47 CFR Part 2

    Communications equipment, Fixed service, Satellite.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 2 as follows:

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: 47 U.S.C. 154, 302, 303, 307 and 336, unless 
otherwise noted.


Sec. 2.106  [Amended]

    2. Amend Sec. 2.106 by revising the footnote following the table in 
US341 to read as follows:
* * * * *
    US341  Non-Government operations in the 24.25-24.45 GHz band must 
provide protection to the FAA radionavigation radar facility at the 
Newark International Airport, New Jersey, until the facility is 
decommissioned. The Newark radar facility is scheduled to be 
decommissioned by January 1, 1998. Protection will be afforded in 
accordance with criteria developed by the NTIA and FCC.
* * * * *
[FR Doc. 98-25271 Filed 9-21-98; 8:45 am]
BILLING CODE 6712-01-P