[Federal Register Volume 63, Number 227 (Wednesday, November 25, 1998)]
[Rules and Regulations]
[Pages 65087-65128]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31334]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 21 and 74

[MM Docket No. 97-217; FCC 98-231]


MDS and ITFS Two-Way Transmissions

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this Report and Order (``Order''), the Commission adopts 
amendments to its rules to enable Multipoint Distribution Service 
(``MDS'') and Instructional Television Fixed Service (``ITFS'') 
licensees to engage in fixed two-way transmissions. These rule changes 
enhance the flexibility of MDS and ITFS operations through facilitated 
use of response stations, use of cellular configurations, use of signal 
booster stations with program origination capability, and use of 
variable bandwidth (``subchanneling'' or ``superchanneling''). As a 
result of these rule changes, any MDS and ITFS frequencies in the 2 GHz 
band may be used by licensees, or leased to wireless cable operators, 
for broadband data, video or voice transmissions to and/or from 
subscribers' premises, promoting the competitive position of the 
wireless cable industry, augmenting the educational uses of these 
frequencies by ITFS entities, and increasing services to consumers.

DATES: Effective January 25, 1999.

FOR FURTHER INFORMATION CONTACT: Michael J. Jacobs, (202) 418-7066 or 
Dave Roberts, (202) 418-1600, Video Services Division, Mass Media 
Bureau.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Report and Order, MM Docket No. 97-217, adopted September 17, 1998, and 
released September 25, 1998. The full text of this 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 Services, Inc., (202) 857-3800, 1231 20th 
Street, N.W., Washington, D.C. 20036.

Synopsis of Report and Order on MDS and ITFS Two-Way Transmissions.

I. Introduction

    1. This Order is adopted by the Commission after receiving and 
evaluating comments and reply comments, including ``permit-but-
disclose'' ex parte comments, filed in response to the Commission's 
Notice of Proposed Rulemaking (``NPRM'') in this docket. MDS and ITFS 
Two-Way Transmissions, 62 FR 60025, Nov. 6, 1997, as corrected, 62 FR 
60750, Nov. 12, 1997. The NPRM was issued after the Commission 
initially sought comment on a petition for rulemaking filed by a group 
of 111 educators and participants in the wireless cable industry 
(collectively, ``Petitioners''), comprised of MDS and ITFS licensees, 
wireless cable operators, equipment manufacturers, and industry 
consultants and associations. Currently, MDS and ITFS licensees are 
authorized to use digital technology in order to increase the number of 
usable one-way channels available to them, leased ITFS frequencies and 
MDS channels may be used for asymmetrical high speed digital data 
applications so long as such usage complies with the Commission's 
technical rules and its declaratory ruling on the use of digital 
modulation by MDS and ITFS stations (``Digital Declaratory

[[Page 65088]]

Ruling,'' 11 FCC Rcd 18839 (1996)), and MDS licensees have been 
permitted to provide two-way service on a limited basis. Response 
channels, which currently are allocated in 125 kHz blocks for use in 
association with most MDS and ITFS stations, must be individually 
licensed under the Commission's existing rules. Prompted by the 
petition for rulemaking, the NPRM anticipated that many MDS and ITFS 
licensees and wireless cable operators engaging in two-way 
transmissions will require more capacity for return paths than is 
available through such 125 kHz channels, and recognized that the 
individual licensing of such channels is too cumbersome and imposes too 
great a financial burden on licensees seeking to implement two-way 
wireless services. Instead, the NPRM proposed to implement a system 
under which MDS and ITFS licensees would be permitted to utilize all or 
part of a 6 MHz channel for return path transmissions from subscriber 
premises, to cellularize their transmission systems to take advantage 
of spectrally efficient frequency reuse techniques, and to employ 
modulation schemes consistent with bandwidths either larger or smaller 
than 6 MHz, all while providing incumbent MDS and ITFS licensees 
interference protection equivalent to what they currently receive.
    2. The comments and reply comments from wireless cable industry 
participants generally support the NPRM's proposals, and include a 
Joint Statement of Position (``Joint Statement'') supported by several 
industry participants in an attempt to reach agreement primarily on 
issues related to leasing of excess spectrum capacity by ITFS 
licensees. While several commenters express concern over the details of 
the proposals advanced in the NPRM and of the Joint Statement, the 
comments and reply comments reflect unanimous support in the MDS and 
ITFS communities for rules which would enable MDS and ITFS licensees 
and wireless cable operators to offer a wide array of new, enhanced 
services, including new digital and two-way communications services. As 
a result, in this Order we: (1) permit both MDS and ITFS licensees to 
provide two-way services on a regular basis; (2) permit increased 
flexibility on permissible modulation types; (3) permit increased 
flexibility in spectrum use and channelization, including combining 
multiple channels to accommodate wider bandwidths, dividing 6 MHz 
channels into smaller bandwidths, and channel swapping; (4) adopt a 
number of technical parameters to mitigate the potential for 
interference among service providers and to ensure interference 
protection to existing MDS and ITFS services; (5) simplify and 
streamline the licensing process for stations used in cellularized 
systems; and (6) modify the ITFS programming requirements in a digital 
environment. We believe that the rules that we adopt in this Order will 
facilitate the most efficient use of the affected spectrum, enhance the 
competitiveness of the wireless cable industry, and provide benefits to 
the educational community through the use of two-way services, while 
still permitting traditional use of the spectrum, thus giving both MDS 
and ITFS licensees the flexibility they need to serve best the public 
interest.

II. Technical Changes to Rules

A. Revised Definitions of Service

    3. The ITFS/MDS spectrum is used primarily for the provision of 
either one-way video service to students, in the ITFS context, or, in 
the MDS context, wireless cable service to subscribers, which likewise 
historically has constituted primarily the provision of one-way video 
services. While our Rules already permit MDS licensees to provide non-
video services, under our current regulatory scheme, MDS operators 
typically only provide two-way service to subscribers using telephone 
return links or individually licensed subscriber premises stations. 
This is an outgrowth of the basic one-way approach to MDS transmission 
from which our current rules originated.
    4. Changes that we adopt in the Order to MDS and ITFS service 
definitions fully incorporate the concept of two-way transmission and 
reflect the reorientation of the regulatory approach to a flexible 
service, from that of an essentially one-way service. A regulatory 
system is created authorizing the use of response station hubs and the 
more flexible use of response stations, enabling the two-way operation 
of wireless cable systems. Specifically, the definition of a ``response 
station'' is amended to indicate that licensees may use all or part of 
any of their 6 MHz channels as a response channel. Response stations 
will be the means of transmission from a subscriber's premises, and can 
use either separate transmitting antennas for return paths or combined 
transmitting/receiving antennas. The concept of a response station hub 
is added, and these hubs will serve as the collection points for 
signals from the response stations in a multipoint-to-point 
configuration for upstream signal flow. Thus, response stations would 
not need to be licensed individually, and they could operate at lower 
power because the response station hubs would be located closer to 
subscriber premises than are current transmitter sites. Moreover, the 
hubs are expected to improve service reliability and permit greater 
frequency reuse than if each subscriber were required to communicate 
directly with their associated main transmitter site.
    5. We further amend the definition for ``signal booster stations'' 
to allow such stations to originate transmissions, as well as to relay 
transmissions from other stations. Booster stations now may be used to 
cellularize wireless cable operations in areas too large to be served 
by a single station. High-power boosters are those which operate above 
-9 dBW EIRP, while low-power boosters may operate at or below the -9 
dBW threshold. Permitting boosters to originate as well as relay 
programming will facilitate frequency reuse, cellular configurations, 
two-way high speed Internet access and other services. Booster station 
signals will receive interference protection within the booster's 
service area, but not at receive sites beyond the booster's service 
area, and booster stations may not have overlapping service areas. We 
also agree with the Joint Statement and with the comments of several 
parties that all booster stations should be licensed to the licensee of 
the channels used by the booster station.
    6. After receiving broad support in the comments and reply comments 
to the NPRM, flexible subchannelization (i.e., the division of a 
channel of a particular bandwidth into multiple, but not necessarily 
equal, channels of smaller bandwidth) will be permitted to allow more 
efficient channel reuse within a given service area, and 
superchannelization (i.e., the combining of more than one channel into 
a single, wider channel) will be allowed and may be used for the 
transmission of high data rates and/or the use of spread spectrum 
emissions. Superchannels also will be licensed to multiple entities in 
many instances, due to the fact that the interleaved, non-contiguous 
channels in this band generally are licensed to different entities. 
Subchannels and superchannels will be limited to digital transmissions 
with fixed uniform power spectral density across the bandwidth, in 
order to make possible the use of spectral density analysis as part of 
the interference analysis process. However, we are permitting the 
maximum possible flexibility for digital subchannelization and 
superchannelization. Such flexibility includes: subchannelization and

[[Page 65089]]

superchannelization of 6 MHz and 125 kHz channels; permitting such 
techniques both for point-to-multipoint (downstream) and response 
channel use; subchannelization of superchannels, e.g., an 18 MHz 
superchannel could be redivided into two 9 MHz channels or any other 
combination which sums to 18 MHz; division of superchannels into 
partially overlapping subchannels which sum to greater than the width 
of the superchannel, e.g., an 18 MHz channel subdivided into three 
channels each 8 MHz wide, thus producing two overlapping areas of 3 MHz 
each; and permitting licensees to use either static (fixed and 
unchanging) or dynamic (not fixed and changing) bandwidths at their 
stations, so as to optimize the efficiency and speed of information 
flow. We will continue to issue individual authorizations to individual 
licensees for 6 MHz and 125 kHz channels, and we will not issue 
specific authorizations for superchannels or subchannels.
    7. Finally, after receiving support from most commenters, we adopt 
rules in accordance with the most flexible framework proposed in the 
NPRM for use of the 125 kHz channels. Such flexibility includes: 
permitting the 125 kHz channels to be used as response channels and/or 
for point-to-multipoint transmissions, which promotes greater options 
for two-way system design and more efficient use of the spectrum; 
allowing licensees to swap 125 kHz channels and removing requirements 
that each 125 kHz channel be used solely in conjunction with a 
specifically associated 6 MHz channel, which together present 
opportunities for licensees to create channels with bandwidths 
exceeding 125 kHz; and, as suggested by the Instructional 
Telecommunications Foundation, Inc. (Foundation), allowing the content 
of those channels to be independent of that transmitted on related 6 
MHz channels. For the sake of simplicity and consistency with the MDS/
ITFS database, we also redesignate the 125 kHz channels as the I 
channels. In adopting this flexible approach towards the 125 kHz 
channels, we deny the request of the Catholic Television Network (CTN) 
that we reallocate all of the 125 kHz channels to ITFS and use them 
solely for response transmissions, and we also deny the University of 
Maryland's request that we mandate that any non-ITFS use of I channels 
licensed to an ITFS entity be secondary to ITFS use. Where the I 
channels are used for downstream transmissions, they will be afforded 
interference protection in the same manner as other point-to-multipoint 
MDS and ITFS facilities. An MDS or ITFS licensee or applicant wishing 
to use its I channels for downstream transmissions shall apply for such 
authority using FCC Form 331, and shall prepare interference showings 
and serve them on potentially affected parties.

B. Interference Considerations

    8. Spectral Mask. In the Digital Declaratory Ruling, the Commission 
waived its rules with respect to out-of-band emissions and permitted 
the use of a somewhat relaxed spectral mask for digital transmission 
modes. This action was taken because the Commission concluded that the 
application of the current analog emission mask to digital emissions 
would be unnecessarily restrictive and could increase the cost of 
digital equipment while providing no benefit. In addition, the results 
of laboratory tests submitted in connection with the Commission's 
consideration of this issue demonstrated that a digital station using 
the relaxed mask is less likely to cause interference than an analog 
station using the existing, more restrictive, mask.
    9. As proposed in the NPRM, and subject to slight modifications 
based on comments of the General Instrument Corporation (formerly 
NextLevel Systems, Inc.) which we believe will have no impact on the 
interference environment, we permanently incorporate into the Rules the 
digital spectral mask waiver provisions of the Digital Declaratory 
Ruling, specifically for main station, high-power booster and response 
station transmitters which operate on a single 6 MHz channel; masks 
also are specified, albeit with certain further modifications, for sub- 
and superchannels, 125 kHz channel stations, and high-power booster 
stations transmitting using analog or digital modulation on multiple 
non-contiguous channels simultaneously carrying separate signals 
(``broadband boosters''). Furthermore, as in the Digital Declaratory 
Ruling, all spectral mask calculations involving digital emissions will 
use the average power of the emission across its bandwidth, and steps 
must be taken to ensure substantially uniform power spectral density 
across the bandwidth in use, including constant power per unit of 
bandwidth for sub-and superchannels, with 6 MHz as the reference 
bandwidth, and continuous energy dispersal during times of no 
modulation. We also incorporate into the Rules formulas provided by 
Petitioners for consistent spectral mask measurement and 
interpretation, and based on comments by CTN and as a result of 
technological advances over the past year, we eliminate the exception 
proposed in the NPRM to the mask for response stations, which would 
have allowed for discrete spurious emissions. No spectral mask 
whatsoever will be applicable to low-power booster stations using 
analog or digital modulation, but such transmitters will be shut down 
if it is established that they are causing harmful interference.
    10. Power. As requested by Petitioners, we will permit response 
stations to use up to 33 dBW EIRP. While the Commission had proposed in 
the NPRM to place a limit of 18 dBW EIRP on response station 
transmitters in cellularized systems, and although we continue to be 
concerned about interference, we concur with the conclusions of 
Petitioners' propagation analysis that the proposed 18 dBW power limit 
would adversely impact system range and reliability, thereby increasing 
the number of stations needed and increasing system costs. As a 
practical matter, however, we do not expect that all, or even most, 
response stations will utilize the maximum power permitted. In 
addition, while current MDS and ITFS rules limit booster power to 18 
dBW EIRP, henceforth we allow boosters to operate up to 33 dBW EIRP, 
the maximum power level for MDS and ITFS. The 33 dBW power limit is 
predicated on a bandwidth of 6 MHz, and the power limit for stations 
using lesser bandwidth must be reduced proportional to that bandwidth. 
We also retain frequency tolerance requirements for digital and analog 
main station and high-power booster station transmitters, while 
declining to impose such requirements for low-power booster and 
response station transmitters; retain rules requiring type 
certification of main and booster transmitters, and adopt rules 
requiring type certification of response station transmitters, subject 
to exceptions set forth in the Digital Declaratory Ruling regarding the 
use of existing analog equipment for digital emissions; and adopt rules 
protecting against excessive radio frequency (``RF'') emissions 
exposure from MDS/ITFS return path transmissions, in a manner similar 
to the approach that we adopted for LMDS.
    11. Interference Protection Criteria. The Commission's current 
regulations in ITFS and MDS for interference protection were designed 
to minimize the potential for destructive cochannel and adjacent 
channel interference between systems located in proximity to each 
other. The specific criteria for protection are of two forms, namely, 
(1) cochannel and adjacent channel

[[Page 65090]]

desired-to-undesired signal (D/U) ratios and (2) limits on the 
magnitude of a station's free space field as measured at the edge of 
the station's protected service area. For cochannel interference 
protection, an applicant must configure its system so that the signals 
from each of its transmitters are at least 45 dB weaker than the 
signals of the existing licensee's transmitters within the licensee's 
protected service area and/or, in the case of ITFS licensees, at the 
licensee's protected receiver sites. For adjacent channel protection, 
the ratio must be at least 0 dB. In order to meet the second form of 
protection, an applicant generally must be able to demonstrate that the 
magnitude of the free space radiated field from each transmitter does 
not exceed a particular limit (i.e., a power flux density -73 dBW/
m2) at the boundary of the applicant's service area.
    12. As proposed in the NPRM, and as supported by all parties 
commenting on this issue, we will apply the existing interference 
criteria in essentially unchanged form, and supplement them with 
similar new criteria to be applied to hub, booster, and response 
stations. Furthermore, because two-way systems will involve large 
numbers of transmitters with heavy frequency reuse and simultaneous 
operation, a calculation of the combined field produced by the main 
station transmitter, all cochannel boosters, and the aggregated power 
from cochannel response stations within a system will be utilized to 
determine compliance with the interference criteria where these 
stations partially or completely share spectrum. These criteria shall 
be adjusted to account for the particular bandwidths involved in the 
calculations. We also emphasize that where an interfered-with receive 
antenna meets the antenna characteristics set forth in our MDS and ITFS 
rules, the station causing the harmful interference is responsible for 
curing it.
    13. Interference Prediction Methodology. In order to predict the 
interference potential of response stations in cellularized systems, we 
will implement a modified version of the three-step process proposed in 
the NPRM, which uses statistical analysis and worst-case assumptions in 
deriving theoretical estimations of the locations and characteristics 
of individual response stations, because these response stations will 
be licensed under blanket authorizations which specify only the 
locations of the associated hubs to which the response stations 
transmit. This methodology is found in Appendix D to the Order, and is 
captioned ``Methods for Predicting Interference from Response Station 
Transmitters and to Response Station Hubs and for Supplying Data on 
Response Station Systems.'' This sequence of system design, development 
and authorization necessitates a radical departure from the customary 
process whereby interference calculations are made based on specific 
information concerning specific stations at specific locations with 
specific operating parameters.
    14. In step one, the hub station response service area (``RSA'') is 
defined and a grid of points is located within this area representative 
of the expected actual distribution of response station transmitters 
within the area. Regions within the area are defined so that an 
adequate population uniformity exists for purposes of predicting 
interference from a distribution of response station transmitters. 
While the methodology originally proposed in the NPRM would have 
determined population uniformity using a complex formula involving 
evaluation of the population density within each ZIP Code within the 
planned boundaries of a region, in response to comments filed by Spike 
Technologies, Inc. (Spike) and others that this procedure would not 
produce results representative of the actual distribution of response 
stations, the methodology has been corrected so that interference 
analyses will be conducted from the grid points which have the greatest 
interference potential, taking into account, both for TDMA and CDMA 
systems, all potential victim sites both inside and outside the RSA. In 
step two, the technical characteristics of response stations which will 
be associated with each point in the RSA grid are identified. One or 
more classes of response stations are identified within the RSA and its 
regions, with each class being a function of several variables, such as 
transmitted power (EIRP), antenna height, frequency, bandwidth, and 
maximum number of assumed simultaneously operated response stations in 
the regional class; these characteristics and others will be specified 
in the response hub application. In response to comments of EDX 
Engineering, Inc. (EDX) and others that the originally-proposed 
methodology ignored terrain data, each grid point now will be assigned 
the highest elevation AMSL of all the geographic area surrounding that 
grid point, thus making the theoretical stations assigned to each grid 
point much more likely to be representative of the actual interference 
potential.
    15. The final step in calculating response station interference 
would require combining the radiated fields of all response stations of 
all classes, regions and RSAs within the primary station's protected 
service area. In order to simplify this calculation, the statistical 
population uniformity within each region will be used as a basis for 
grouping response stations of all classes in proximity at the grid 
points laid out within each RSA; multiple classes could share the same 
grid points. For each class of response stations assigned to a grid 
point, a set of worst-case assumptions will be made concerning the 
transmitting antenna radiation pattern, transmitter power (EIRP) and 
antenna height. Several complex calculations, including procedures for 
checking the initial calculations, combining the radiated field for all 
of the transmitters for each class of response station at each grid 
point from all RSAs will then be used to evaluate compliance with the 
interference criteria. Subsequently, licensees are free, upon 
notification to the Commission, to continue adding response station 
transmitters within their systems until calculations indicate that 
permissible interference values would be exceeded.
    16. We also have considered other proposed modifications to the 
proposals in the NPRM for predicting interference from response 
stations and to hubs, which we believe render the methodology 
sufficiently comprehensive and conservative without being overly 
protective or stifling of growth. For instance, we agree with CTN and 
others who argue that the ``minimum receivable signal'' hub protection 
standard proposed in the NPRM would have, in some instances, 
overprotected the hub and thus potentially precluded construction of 
other stations. Instead, we adopt Petitioners' amended proposal to 
protect the hub's noise floor, and to take into account the actual 
antenna(s) in use at the hub. However, in adopting the methodology as 
modified, we decline to adopt several other proposed modifications, 
including: EDX's proposed alternate methodology, in which all response 
station transmitters within a defined area would be represented by a 
single hypothetical aggregate response station located at the hub site, 
and which likely would give erroneous interference calculations for 
many two-way system configurations; Spike's suggestion that applicants 
should be free to choose any methodology they wish for making 
interference calculations, which would have promoted uncertainty and 
slowed the evaluation of applications; and Spike's recommendation that 
hubs be

[[Page 65091]]

redefined to include transmitting capability, which would add 
unnecessary complexity to the interference protection rules and which 
is further unnecessary in light of the ability of licensees to 
collocate hubs with boosters and main stations.
    17. We also decline to adopt the guardband proposal for 
interference protection advanced by CTN. CTN contends that interference 
could be caused to ITFS receive sites by nearby response stations which 
are neither cochannel nor adjacent channel to the channels in use at 
the ITFS receive sites, as a result of brute force overload (``BFO'') 
to broadband downconverters used at these sites. As a solution to the 
potential problem of interference from response stations, including 
BFO, CTN proposes that a guardband be used as a buffer between 
downstream ITFS operations and upstream operations, with downstream MDS 
operations occupying the guardband. CTN argues that a guardband would 
have several benefits, such as mooting the need for calculating 
response station interference into ITFS receive sites, and confining 
the risk of BFO, as well as cochannel and adjacent channel 
interference, solely to MDS licensees. While we find CTN's guardband 
proposal unduly limiting of system design flexibility, and we also at 
this time reject as unduly restrictive CTN's proposal of on-air testing 
of response stations within a certain proximity of ITFS receive sites 
prior to activation of those response stations, we adopt a slightly 
modified version of CTN's proposal that no response station may be 
installed until a notification is sent to each ITFS licensee with any 
registered receive site within a distance of 1960 feet of the location 
of the proposed response station. Moreover, because we agree with CTN 
that BFO is a possibility in certain limited circumstances, we will 
require that licensees of stations causing interference immediately 
commence a full cooperative effort with licensees receiving 
interference, to solve the problem as quickly as possible at the 
expense of the offending licensee. We emphasize that we will order the 
immediate deactivation of part or all of a system if that system is 
causing any interference--whether cochannel, adjacent channel or BFO--
and the licensee has not cooperated fully and in a timely manner to 
eliminate the interference.

C. Modulation Methods

    18. In the Digital Declaratory Ruling, the Commission authorized 
the use of QAM and VSB modulation. While the Commission declined to 
consider the use of other digital modulation methods in the context of 
that proceeding, it stated that it would consider future requests for 
declaratory rulings where the requesters submit appropriate data to 
demonstrate that other modulation techniques could be used in a manner 
that would not interfere with MDS and ITFS analog and digital 
operations.
    19. As in the Digital Declaratory Ruling, and as supported by the 
commenters on this issue, we decline to adopt one or more ``standard'' 
digital technologies. We retain and add provisions for accommodating 
the use of different modulation types. In the NPRM, the Commission 
solicited comment on whether there is a basis for concluding that use 
of particular digital modulation types by MDS and ITFS stations other 
than VSB and QAM would not be prone to interference, based on the 
current 45 dB/0 dB protection ratios for cochannel and adjacent channel 
interference respectively, i.e. that such modulation formats should be 
permitted without requiring test data. For example, one modulation type 
may be a subset of VSB and QAM and, therefore, is covered under the 
industry tests used to support the Digital Declaratory Ruling. In 
response, four parties filed a joint request for declaratory ruling 
asking that the Commission permit the use of two additional forms of 
digital modulation, CDMA and QPSK, and we are persuaded to permit use 
of those modulations on a regular basis at all MDS and ITFS stations. 
In addition, because we wish to encourage parties to continue to 
identify different digital modulation schemes that could be useful in 
MDS and ITFS, we emphasize that we remain open to considering future 
requests for declaratory rulings in accordance with the Digital 
Declaratory Ruling, upon submission of appropriate data. Finally, in 
order to facilitate testing and use of different digital modulations 
where possible, we will permit licensees and system operators to use 
any digital emission in limited circumstances which we set forth where 
interference is unlikely or where all parties potentially affected by 
interference have consented to such use, and so long as such emissions 
meet spectral mask and uniform power spectral density requirements.

III. Application Processing Issues

    20. We set forth a scheme governing the filing and processing of 
applications for new or modified response station hubs, boosters or 
downstream I Channel operations, that will substantially shift review 
of such applications from Commission staff and leave much of the 
interference environment to be worked out among licensees. As proposed 
in the NPRM, we adopt a rolling, one-day filing window system. While 
each applicant will be required to demonstrate protection of existing 
or previously proposed facilities, applications filed on the same day 
will be granted and the filers left to resolve incompatibilities 
amongst themselves with little or no intervention by Commission staff. 
Because parties will be unable to offer reliable service without 
resolving such conflicts, we believe that the incentive to reach a 
resolution will be so great that Commission involvement will be 
unnecessary to resolve disputes.
    21. Specifically, applications first will be placed on public 
notice without prior staff review of interference studies. While the 
Commission tentatively rejected in the NPRM Petitioners' proposal that 
the applications then would be granted automatically on the 61st day 
after that notice, unless a petition to deny was filed or the 
Commission notified the applicant prior to that date that a grant would 
not be made, the majority of commenters on the subject supported some 
type of streamlined process, especially when coupled with a complete 
guarantee of protection against interference. Upon review of these 
comments, we have been persuaded that failure to adopt an expedited 
processing system would be seriously detrimental to the provision of 
two-way service, despite the increased burden that such a system places 
on licensees to track and monitor applications. Thus, we adopt a 
modification of the automatic grant proposal, a certification 
procedure, whereby an applicant must certify in its application that it 
has completed, served upon potentially affected parties, and submitted 
to the Commission's copy contractor all required interference studies 
(or consent letters) and engineering showings demonstrating no 
interference. Before placing an application on public notice, 
Commission staff will review it to ensure that all required 
certifications are included, and any application that does not contain 
the proper certifications will be dismissed. The application will be 
granted in reliance on the certifications on the 61st day after public 
notice, unless a petition to deny is filed against it or the Commission 
finds in a random audit that the applicant certified falsely. A false 
certification also could be grounds for revocation of a license. Though 
consistent with similar certification procedures that have been adopted 
for other communications

[[Page 65092]]

services, this approach is particularly appropriate for MDS and ITFS, 
because the interdependence of those two services in most cases relies 
on the parties working together. And, as a safeguard, systems causing 
interference must cure it immediately or face shut-down, even if the 
station applications had been unopposed.
    22. A large number of applications are likely to be filed once the 
new rules become effective, and many of the applications submitted at 
that time may conflict with others filed simultaneously. Therefore, as 
proposed in the NPRM, in order to smooth the transition to the rolling 
one-day filing window application processing system, we adopt a special 
one-week initial filing window, the opening of which will be announced 
by public notice, where all applications filed during this window will 
be deemed to have been filed as of the same day. Following the 
publication of a public notice announcing the tendering for filing of 
applications submitted during that window, applicants will have a 
period of 60 days to amend their applications to resolve conflicts. 
During this 60-day period, no additional applications may be filed, 
affording those who filed during the one-week window an opportunity to 
resolve any conflicts without fear that, during the pendency of 
settlement discussions, third parties will propose facilities that will 
have to be protected if the original applicants amend their 
applications. After this initial 60 day period, public notice and 
application grant procedures akin to those that we adopt for the 
rolling one-day filing windows will be implemented. On the 61st day 
after the publication of the second public notice, the rolling one-day 
filing window will go into effect. We believe that our adoption of the 
one-week initial filing window will lessen the burden on all affected 
parties, including the Commission's staff, during the first round of 
application filing. We also believe that providing parties with an 
initial 60-day period during which they can resolve any apparent 
conflicts and then amend their applications without prejudice will 
serve to expedite service to the public by allowing parties to resolve 
their differences without the need to seek Commission review through 
the petition to deny process.
    23. In the NPRM, the Commission solicited comment on whether to 
adopt a system whereby an applicant, once authorization for service has 
been granted, may switch from common carrier to non-common carrier 
service and back without seeking subsequent authorization. The 
Commission also sought comment on whether operators should be required 
to give the Commission notice when they are switching back and forth 
between common carrier and non-common carrier service, even if prior 
approval is not required. What little comment we received on this 
subject was supportive of providing the requested flexibility, and we 
adopt rules implementing it, subject to a requirement that licensees 
provide the Commission with 30-days advance notice of such changes.

IV. Proposals and Issues Primarily Involving ITFS

    24. Under Sec. 74.931 of the Commission's Rules, ITFS stations are 
operated by educational organizations and are ``intended primarily to 
provide a formal educational and cultural development in aural and 
visual form,'' to students enrolled for credit in accredited secondary 
schools, colleges and universities. Currently, Sec. 74.931(e)(9) 
specifies that an ITFS licensee who leases excess channel capacity to a 
wireless cable operator must provide a total average of at least 20 
hours per channel per week of ITFS programming on its authorized 
channels. ITFS licensees in such lease arrangements also retain the 
right to recapture ``an average of an additional 20 hours per channel 
per week for simultaneous programming on the number of channels for 
which it is authorized.'' In addition, an ITFS licensee may shift its 
required educational programming onto fewer than its authorized number 
of channels via channel loading or channel mapping. The licensee may 
further agree to transmission of recapture time on channels not 
authorized to it but which are included in the wireless cable system of 
which it is a part.

A. ITFS Programming Requirements

    25. In the NPRM, the Commission sought comment on several issues 
related to the question of whether to change our ITFS programming 
requirements in light of the use of digital technology by ITFS 
licensees. It asked whether there should be different rules depending 
on whether the wireless cable system employs digital or analog 
transmissions, or some combination of both. It further asked whether 
our existing program content requirements should be retained or whether 
they should be modified. Specifically, the Commission sought comment on 
whether data transmission and voice transmission should count toward 
the fulfillment of minimum programming requirements, and if they were 
to count, how they would be measured. The Commission also welcomed 
suggestions on whether education-related upstream transmissions should 
be applied towards satisfaction of minimum ITFS programming 
requirements, and, if so, how they should be measured for that purpose. 
The Joint Statement takes positions on many of these issues. To the 
extent that it and its supporters represent an agreement by most of the 
parties in the wireless cable industry and MDS and ITFS services, we 
have accorded it deference in formulating our policies. Nonetheless, 
while we find some its approaches sound, we find some if its provisions 
unworthy of adoption.
    26. Redefinition of Eligible Content. Commenters unanimously 
support the proposal that spectrum usage beyond video programming be 
eligible to satisfy ITFS educational usage requirements. We agree that 
availability of advanced technologies dictates that it is now time to 
accord ITFS licensees increased flexibility in determining which 
transmissions qualify as satisfying educational usage requirements, so 
long as such transmissions are in furtherance of the educational 
mission of an accredited public or private school, college or 
university, or other eligible institution (such as certain uses by 
health care facilities), offering courses to enrolled students. Such 
uses may include downstream or upstream video, data and voice 
transmissions. In addition, while heretofore not qualifying to satisfy 
educational usage requirements, qualifying uses now may include, but 
are not limited to, teacher conferencing, remote test administration, 
distribution of reports and assignments, research towards and sharing 
works of progress in projects for courses, professional training, 
continuing education, and other similar uses. Furthermore, in light of 
the myriad of possible uses of the spectrum for courses by accredited 
schools, we no longer need a separate rule pertaining to where 
transmissions are not to on-campus receive sites.
    27. We also will subject ITFS signal booster stations to 
educational usage requirements, in conjunction with those to which main 
ITFS stations are subject, and unless otherwise specified in the Rules, 
a ``channel'' henceforth shall refer to any of the 6 MHz frequency 
blocks assigned pursuant to Secs. 21.901(b) and 74.902(a) of the 
Commission's Rules. We amend Sec. 74.931 and other pertinent rules to 
reflect all of these changes. However, while Hispanic Information and 
Telecommunications Network contends that qualifying educational service 
should not be

[[Page 65093]]

limited to that offered by accredited institutions, we disagree, 
because requiring that a qualified licensee be an accredited 
institution provides greater certainty of the integrity of the 
licensee's educational function. Thus, we will keep intact our 
eligibility requirements of Sec. 74.932(a).
    28. Analog Programming Requirements. Commenters who address this 
subject unanimously believe that the current programming requirements 
should be retained for ITFS licensees solely engaged in transmission of 
downstream analog programming. We agree, and we will impose no changes 
to programming requirements where licensees solely use analog 
transmissions. However, for some commenters there is still discord over 
what the extent is of the recapture time requirement. In the NPRM, the 
Commission rejected Petitioners' proposed changes to Sec. 74.931(e) 
that sought to revise the absolute 20 hours per channel per week 
recapture time requirement to provide that the ITFS programming 
requirements constitute a total of 40 hours per channel per week, 
including both actual programming and recapture time. While Petitioners 
and some other commenters argue that the Commission's stance in the 
NPRM will deter investment, we believe that the Commission's rejection 
in the NPRM of Petitioners' proposed changes to our recapture time 
requirements was correct. However, in response to concerns expressed by 
BellSouth, we clarify that the Rules do not require that 20 hours 
always be reserved without accounting for the amount of recapture 
already exercised.
    29. Digital Educational Usage Requirements. While CTN insists that 
educational usage requirements must be modified to reflect increased 
capacity arising from use of digital technology, and argues that a 
proportionate increase in instructional usage is needed to prevent the 
dilution of the instructional nature of ITFS channels, the overwhelming 
majority of commenters on these issues favors retaining the current 
minimum educational usage requirements in a digital environment. Some 
of these commenters, such as BellSouth, argue that ``there is no direct 
correlation between technological advancements and the need for ITFS 
programming''; others, such as Wireless One of North Carolina, L.L.C., 
observe that many ITFS licensees are finding it difficult even to 
satisfy the existing ITFS minimum educational usage requirements; 
several others assume the posture reflected in the Joint Statement, 
that while the educational usage requirements should not be changed, 
25% of an ITFS licensee's capacity should be immediately available to 
the ITFS licensee or subject to recapture (with a minimum of 5% of the 
licensee's capacity immediately available); and some others, such as 
the San Francisco-San Jose Educator/Operator Consortium, contend that 
recapture requirements are inefficient and urge that the Commission 
abolish them.
    30. Because we seek to maximize the flexibility of educators and 
wireless cable operators to design systems which best meet their varied 
needs, we will adopt ITFS excess capacity leasing rules which best 
promote this flexibility while at the same time safeguarding the 
primary educational purpose of the ITFS spectrum allocation. After a 
careful review of the comments in this proceeding, we decide that these 
goals are best harmonized where digital transmissions are used by 
retaining the current 20 hours per channel per week educational usage 
requirements, adopting the Joint Statement's proposed absolute 
reservation of a minimum of 5% of an ITFS station's licensed capacity 
for instructional purposes only, and eliminating requirements setting 
aside capacity for ready recapture by ITFS licensees. We emphasize that 
the 20 hours per channel per week minimum educational usage requirement 
is independent from, but concurrent with, the minimum 5% capacity 
reservation; further, the reserved capacity can be devoted to 
satisfying minimum educational usage requirements. These complementary 
standards are in the public interest because they insure the immediate 
devotion of ITFS spectrum to formal educational usage, and the 
provision by ITFS licensees of at least as much educational usage as 
they provide under the current rules, while providing for expansion of 
ITFS service offerings and maximization of spectrum available for 
leasing to wireless cable operators. Thus, these standards also serve 
the same purposes as the recapture provisions that they supplant.
    31. Whether a reservation of 5% of the licensee's capacity is 
sufficient to meet the minimum educational usage requirements, let 
alone provide for future expansion of service, will depend both on the 
digital compression ratio employed by the licensee, and on the 
particular form of transmissions utilized by the licensee to meet its 
usage requirements; in some cases, an ITFS licensee may need to reserve 
more than 5% of its capacity in order to satisfy its educational usage 
requirements or to provide room for future expansion of services. We 
also emphasize that an ITFS licensee may reserve for itself in excess 
capacity lease negotiations more than the minimum required reservation 
of capacity, and is free not to lease its excess capacity at all if it 
does not wish to do so.
    32. Measurement of Educational Usage. In recognition of the 
difficulty of measuring compliance with the requirements of 20 hours 
per channel per week of educational usage and the 5% minimum capacity 
reservation, and in light of the varied forms that ITFS spectral usage 
can take, we agree with those parties commenting on this issue that at 
least for now, the best course is to rely on the good faith efforts of 
ITFS licensees to meet these requirements, subject to potential 
Commission audits with the licensee bearing the burden of proof of 
compliance. We decline to adopt time-of-day requirements for measuring 
educational usage, and in light of changed content requirements and 
available service options as a result of this proceeding, we grant 
relevant portions of pending petitions for reconsideration of a 1994 
Commission decision that only programming transmitted for ``real time'' 
viewing by students counts towards minimum educational usage 
requirements.

B. Channel Loading, Shifting and Swapping

    33. It is anticipated that system developers will attempt to 
utilize contiguous 6 MHz channels for two-way services in order to 
minimize the amount of spectrum that would be lost to the spectral mask 
whenever a return path is adjacent to a downlink channel. Furthermore, 
entire ITFS channel groups may need to be devoted for return paths. 
Thus, in the NPRM, the Commission advanced Petitioners' proposal that 
we allow ITFS licensees to satisfy their educational usage requirements 
on other channels within the wireless cable system (``channel 
loading''), and not mandate that licensees meet these requirements 
using at least one of their own channels (``channel shifting''). The 
Commission also proposed to allow the trading of channels between 
licensees (``channel swapping''), and solicited comment on whether ITFS 
licensees should be required to retain one or more channels for 
downstream transmissions. The general concepts of channel loading, 
shifting and swapping are endorsed by the Joint Statement and supported 
by almost all of the commenting parties. With the exception of our 
channel loading rules and intra-ITFS channel swaps between licensees 
using analog transmissions only, the concepts which we permanently 
adopt in the Order apply only to licensees using digital

[[Page 65094]]

transmissions, leasing excess capacity to an operator which uses 
digital transmissions, or swapping channels with a licensee which uses 
digital transmissions.
    34. Channel Loading. The parties commenting on our channel loading 
rules unanimously support their retention, and we shall do so. In 
response to comments of Petitioners and of BellSouth, we also modify 
these rules to eliminate the requirement that each ITFS licensee 
engaged in channel mapping or channel loading preserve the ability to 
transmit all of its ready recapture time simultaneously on the number 
of channels for which it is licensed.
    35. Channel Shifting. The overwhelming majority of commenters on 
this proposal wholeheartedly support it. While the Joint Statement 
supports the proposal so long as the usage is shifted onto channels 
licensed to other ITFS entities, we are amending our Rules to permit 
maximum flexibility in voluntary channel shifting for an ITFS licensee 
which itself uses, or leases excess capacity to a wireless cable 
operator which uses, digital transmissions. Such flexibility 
encompasses the right of an eligible ITFS licensee to shift its 
required educational usage onto any other channel(s) within the same 
wireless cable system, regardless of whether licensed to an MDS or ITFS 
entity. We hope that the flexibility we accord to ITFS licensees to 
lease their channel capacity, along with the maintenance of minimum 
ITFS educational usage requirements, also encourages educators to apply 
for new ITFS stations and leads to more educational usage.
    36. Downstream Channel Reservation. Of the few comments that we 
received on this issue, the majority favors a mandatory preservation of 
one downstream channel. We are adopting the Joint Statement's proposal, 
as modified by comments of Alliance for Higher Education, et al. 
(Higher Education Alliance): that each ITFS licensee leasing channels 
to be used for return paths shall be required to maintain at least 25% 
of its capacity to be used for downstream transmissions both during the 
term of the lease and following termination of its leasing arrangement; 
and that this preservation need not be over the licensee's own licensed 
channels. In order to provide additional safeguards of the ITFS 
spectrum allocation, we stipulate further that in the event the leasing 
arrangement ends, the wireless cable operator must return to the ITFS 
licensee unfettered use of as many 6 MHz channels as are authorized to 
the licensee; only 25% of these channels, however, must be devoted to 
downstream transmissions.
    37. Channel Swapping. The comments that we received unanimously are 
in favor of the concept, and most commenters on these issues indicate 
full support both for swaps between ITFS channels, as well as between 
ITFS and MDS channels. The rules that we adopt allow nearly maximum 
flexibility in the types of swaps that may take place. We decline to 
adopt proposals limiting the location of response channels, such as a 
proposal which the Commission tentatively rejected in the NPRM as 
unduly restrictive, which sought to convert MDS channels 1, 2 and 2A to 
upstream use only, leaving the rest of the MDS and ITFS spectrum solely 
for downstream use. Moreover, because channel swapping is voluntary and 
its terms negotiable, we see no need to adopt the proposal of Schwartz, 
Woods & Miller (SWM) to require that the wireless cable operator cover 
all of the costs of channel swaps. We implement simple procedures for 
channel swap applications: Each licensee seeking to swap channels shall 
file a pro forma assignment application with the Commission, attaching 
an exhibit which clearly specifies that the application is filed 
pursuant to a channel swap agreement.
    38. Effects on ITFS License Renewal. Several commenters urge that 
it is important that we clarify that channel shifting, in particular, 
will not constitute a basis for, or be a factor in, a license renewal 
proceeding; the Joint Statement also contains a provision to this 
effect. This concern arises over possible effects of an ITFS licensee 
not providing any educational usage over its own licensed channels, 
even if it satisfies its educational usage requirements on other 
channels in the same wireless cable system. Because we recognize that 
two-way system design may be based largely on the implementation of 
channel shifting, and that wireless cable operators and their ITFS 
lessors may be deterred from utilizing these efficiencies without 
assurances that doing so will not have an adverse effect at the time 
the ITFS licensee seeks renewal, we amend Sec. 74.931 to reflect that 
the fact that an ITFS licensee utilizes channel shifting, channel 
loading or channel mapping will not itself be considered adversely to 
the licensee in seeking a license renewal.

C. Autonomy of ITFS Licensees and Agency Role

    39. When the Commission solicited comments in preparation for the 
NPRM, several of the ITFS parties who commented at that time expressed 
concern that the proposed two-way scheme presents threats to the 
independence of ITFS licensees and their future ability to use spectrum 
capacity for instructional purposes. Some of those concerned commenters 
focused on the effect that the proposed rules may have on the 
engineering autonomy of ITFS licensees. Concerned commenters also 
identified issues relating to possible encroachment upon the financial 
autonomy of ITFS licensees by implementation of the proposed two-way 
framework. While the Commission, in the NPRM, sought comment on the 
effects that cellularization would have on the engineering and 
financial autonomy of ITFS licensees, it also acknowledged that any 
proposed solutions inherently would implicate the fundamental question 
of what degree of oversight the Commission should maintain in 
regulating the wireless cable industry and ITFS. The Commission 
solicited views on this fundamental question, and on one of its 
principal offshoots, the question of what impact the proposed two-way 
rules should have on the Commission's requirements regarding excess 
capacity lease agreements.
    40. The comments that we received in response to the NPRM evince 
many of the same concerns expressed by some of the ITFS commenting 
parties in earlier rounds of comment, and likewise are met with 
opposing comments conveying responses comparable to those previously 
conveyed. Some of our decisions in the Order, such as generally 
prohibiting involuntary modifications to ITFS stations in a two-way 
environment, should help address some of the concerns of ITFS licensees 
regarding their autonomy and ability to continue providing service 
should they no longer be in a relationship with a wireless cable 
operator. However, while we will continue to require certain provisions 
in excess capacity leases between ITFS licensees and wireless cable 
operators, and likewise will continue to prohibit certain provisions, 
we believe generally that ITFS licensees can--and should--in their 
negotiations with wireless cable operators arrange for lease terms that 
best protect their own individual interests and needs.
    41. As a starting point, we reemphasize the Commission's 
declaration in the NPRM that cellularization by ITFS licensees is

[[Page 65095]]

permissive only, and not mandatory. In addition, we have decided to 
grant all ITFS licensees protected service area (psa) protection, in 
response to concerns over coercion such as those expressed by the 
Foundation, that otherwise there would be a disparity in interference 
protection between ITFS licensees that offer high-speed Internet 
service pursuant to a lease with a wireless cable operator, and ITFS 
licensees that provide exactly the same service on their own. We also 
reaffirm the ability of stand-alone ITFS licensees to provide 
communications services that are not specifically educational over 
their frequencies, so long as they meet the educational usage 
requirements set forth in our Rules.
    42. Engineering Autonomy. We agree with the commenters who 
recognize that our requirement that each ITFS licensee retain 25% of 
its capacity for downstream transmissions will present significant 
assistance to ITFS licensees in continuing to provide downstream 
educational services. Nevertheless, we believe generally that post-
relationship configuration issues should be arranged by the ITFS 
licensee in the course of negotiating the terms of its excess capacity 
lease with the wireless cable operator. We further conclude that, 
particularly in light of the primary educational function of ITFS 
licensees, where an ITFS licensee is not the source of transmissions 
over its licensed bandwidth, we will not regard the ITFS licensee as 
having legal control over the content of such transmissions. At most, 
an ITFS licensee's legal control over content transmitted over its 
authorized bandwidth is a contractual matter between the leasing 
parties.
    43. Financial Autonomy. In the NPRM, the Commission sought comment 
on the concerns of several commenters at that stage of the proceeding 
that ITFS licensees will be unable to sever their relationship with the 
wireless cable operator and acquire the equipment to either continue 
cellular operations or return to non-two-way transmissions. While some 
commenters such as CTN, the Foundation, and SWM propose various 
regulatory solutions to these concerns, we agree with the commenters 
who argue that the ITFS licensee should address these concerns itself 
in its lease negotiations. Thus, we decline to adopt proposals to 
require that two-way wireless cable operators establish a performance 
bond or escrow account, with sufficient funds to ensure the 
uninterrupted operation of participating ITFS stations for a given 
period; or to have transmission systems transfer automatically to the 
ownership and control of the ITFS licensee upon termination of the 
lease, or upon commencement of a lease term. However, consistent with 
current policy, we will require that each excess capacity lease contain 
a provision assuring the ITFS licensee's right to purchase the actual 
equipment, or equipment comparable to that, used by the ITFS licensee 
during the lease for educational purposes. This means, for example, 
that if the ITFS licensee was providing educational services during the 
lease period utilizing digital transmissions, the wireless cable 
operator is not obligated to retain analog transmission equipment for 
ITFS licensees seeking to return to traditional downstream analog 
transmissions. In addition, as requested by CTN, this required lease 
provision applies to dedicated or common equipment used for educational 
purposes. Nonetheless, as further indicated by CTN, negotiations 
between the parties to the lease still will be required to spell out 
the appropriate specific equipment that must be made available.
    44. Commission Role. In the NPRM, the Commission described how in 
the past, it has adopted rules and procedures to accommodate and 
protect what has been viewed as the special needs of educational 
institutions and organizations, believing that educational institutions 
should be treated differently from commercial entities in many 
situations due to limited financial and staff resources. One of these 
protections has been required review by the staff of ITFS excess 
capacity lease agreements, for overly restrictive provisions affecting 
the licensee's rights and obligations and for compliance with the 
Commission's leasing policies. The Commission requested comment on 
whether parties should continue to be required to file written 
agreements governing the ITFS licensee's lease of excess capacity on 
its channels.
    45. The comments that we received on this issue generally are split 
between those who believe that many ITFS licensees are well-funded, and 
those who believe that many still have very limited resources. Because 
we believe that many examples supporting both viewpoints exist, we find 
it still appropriate for us to maintain some degree of oversight 
regarding the relations between the wireless cable industry and ITFS, 
albeit a limited role which allows for maximum possible flexibility of 
the parties in establishing excess capacity lease provisions, while at 
the same time ensuring educational use of ITFS and a licensee's ability 
to continue uninterrupted in that use should its relationship with the 
wireless cable operator terminate. In this regard, we will heed the 
prescriptions of the numerous commenters who request that we continue 
to review excess capacity leases for provisions overly restrictive of 
ITFS licensees and in order to police established safeguards, and 
require amendment of noncompliant leases. However, consistent with many 
of our decisions in the Order regarding the substance of such leases, 
we intend this review to be on a lesser scale than previously, and to 
be more deferential to the burdens and benefits which constitute the 
agreement between the parties to the leases, and to allowing 
flexibility in implementation of two-way services.
    46. In the NPRM, the Commission tentatively rejected, but 
nonetheless sought comment on, a proposal, advanced by the Foundation, 
that the Commission require that two-way digital applications and 
interference consents be reviewed by legal and engineering counsel that 
do not represent commercial interests, and that these independent 
advisors certify that in their professional opinion the submission will 
not harm future instructional service. The Commission noted that past 
attempts to require all leasing parties to hire separate counsel have 
been declined by the Commission, having found this safeguard 
unnecessary and relying instead on the staff's review and monitoring of 
leases. After reviewing the comments on this issue, we continue to see 
no reason to change our position on this issue, and we decline to adopt 
the Foundation's proposal.
    47. Grandfathering of Excess Capacity Lease Provisions. The Joint 
Statement recommends that excess capacity lease agreements that provide 
for digital usage and were entered into prior to release of the Order 
be ``grandfathered for their duration.'' We seek to ensure a transition 
as smooth as possible to two-way operations, and we are persuaded by 
commenters such as Higher Education Alliance who describe how 
effectively requiring amendment of numerous existing leases could prove 
unduly burdensome to ITFS licensees and wireless cable operators who 
did not anticipate such changes. However, since the March 31, 1997 
release of our Public Notice announcing the filing of the petition for 
rulemaking which initiated this proceeding, no party can be heard to 
argue that it did not have notice that ITFS/MDS two-operations were 
anticipated in the not-too-distant future. Thus, any excess capacity 
lease entered into, renewed, or extended after March 31, 1997 is 
expected to be brought into compliance immediately

[[Page 65096]]

with all of the rule changes and policies that are adopted here, as is 
each new such lease, renewal, or term extension from here onward. 
Finally, we emphasize that we will not adjudicate whether the 
provisions of any specific lease contemplated digital operations as a 
general matter. In the absence of resolution between the parties to the 
lease, we believe this issue to be a matter of contract law properly 
heard before a state tribunal. In framing our policies towards 
grandfathering of certain excess capacity leases, we have considered, 
and rejected, SWM's proposal that in order to protect the rights of 
incumbent ITFS licenses, the Commission require that leases approved or 
submitted under the previous rules ``be amended to make clear that the 
wireless cable lessee and the ITFS licensee have together considered 
the rule changes adopted and made any appropriate changes to lease 
terms, prior to the commencement of commercial operations on the 
frequencies using cellularization, sectorization or differing 
channelization plans.''
    48. Length of Leases. The Joint Statement urges that the Commission 
allow excess capacity leases of up to 15 years duration, provided that 
any lease extending beyond the term of a licensee's authorization 
provides for termination of the lease in the event the Commission 
denies the subject station's application for renewal. Virtually all of 
the commenters who address this proposal support it, and we are 
adopting it. In doing so, we decline to adopt the Foundation's 
suggestion of maintaining the 10 year lease limit for downstream-only 
digital and analog systems, while allowing a 15 year limit for two-way 
systems.
    49. Other Lease Requirements. Petitioners urge that the Commission 
reverse two policies which, Petitioners assert, were not formed in 
rulemaking proceedings: (1) Barring lease provisions that require an 
ITFS licensee to assign its remaining obligations under an excess 
capacity lease if it chooses to assign its underlying license; and (2) 
Rejecting lease provisions which require that an ITFS licensee, seeking 
to cease operating its facility during the excess capacity lease term, 
provide the wireless cable operator a reasonable opportunity to secure 
an eligible ITFS assignee before the license is returned to the 
Commission for cancellation. We believe that it is appropriate to 
continue our ban of provisions that would require an ITFS licensee to 
assign its remaining obligations under an excess capacity lease. 
However, henceforth we will allow provisions that would permit a 
wireless cable operator to find a qualified ITFS assignee to assume the 
license prior to its cancellation, and we set forth guidelines to 
govern what constitutes acceptable such provisions.
    50. The Joint Statement contains provisions which call for all 
excess capacity leases to state that the ITFS licensee ``shall have the 
right to use any Internet services offered over the system at no 
greater than the lowest prevailing commercial rate and shall have 
reasonable access, at rates to be negotiated between the parties, to 
other services offered over the system (such as addressability and two-
way capability).'' Because we believe that these are best private 
contractual matters between the parties, we decline to implement these 
provisions of the Joint Statement.

D. ITFS Call Sign Transmission

    51. In the NPRM, the Commission presented Petitioners' arguments 
that the burdens of continued enforcement of the ITFS call sign 
transmission requirement in a two-way environment will far outweigh the 
benefits. The Commission sought comment on the proposed elimination of 
Sec. 74.982, and solicited alternative solutions for maintaining the 
accountability of ITFS licensees. The few commenters which addressed 
this proposal unanimously favored eliminating the call sign 
transmission requirement where digital transmissions are utilized. In a 
two-way environment, alleviation of interference problems primarily 
will be left to the wireless cable operator, because of all the 
coordination it must do to make a two-way system function properly. In 
recognition of this and the greater efficiency of digital 
transmissions, we believe that the burdens embedded in Sec. 74.982, 
such as costs, outweigh the benefits of applying the rule to any ITFS 
station using any digital transmissions. Thus, any ITFS station using 
digital modulation, whether or not in a lease agreement with a wireless 
cable operator and whether or not in a two-way system, will be exempt 
from the requirements of Sec. 74.982. However, because these costs 
would not be prohibitive to ITFS stations using only analog 
transmissions, and because the benefits of interference identification 
can still be realized economically where transmissions are in analog, 
we will retain Sec. 74.982 and apply it to ITFS stations which transmit 
only in analog.

V. Final Regulatory Flexibility Analysis (FRFA)

    52. As required by the Regulatory Flexibility Act (RFA), 5 U.S.C. 
Sec. 603, an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the NPRM in this proceeding. The Commission sought 
written public comment on the proposals in the NPRM, including on the 
IRFA. The Commission's Final Regulatory Flexibility Analysis (FRFA) in 
this Order conforms to the RFA, as amended by the Contract With America 
Advancement Act of 1996.1
---------------------------------------------------------------------------

    \1\ Public Law 104-121, 110 Stat. 847 (1996) (CWAAA); see 
generally 5 U.S.C. Secs. 601 et seq. Title II of the CWAAA is the 
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).
---------------------------------------------------------------------------

A. Need for and Objectives of Action

    53. In the Order, we amend parts 1, 21 and 74 of our Rules to 
enable MDS and ITFS licensees to provide two-way communication 
services. These services will be enhanced through the use of two-way 
audio, video and data communications from ``response'' stations, the 
use of booster stations with program origination capability in a 
cellular configuration designed to create spectrum flexibility through 
frequency reuse, and the use of variable bandwidth (``subchanneling'' 
and ``superchanneling'') to create additional flexibility. We believe 
the final rule amendments will facilitate two-way transmission and 
other improvements to the MDS and ITFS services.

B. Significant Issues Raised by the Public in Response to the Initial 
Analysis

    54. No comments were received specifically in response to the IRFA 
contained in the NPRM. However, some commenters did raise arguments 
concerning the effect that certain of our proposals may have on small 
entities.
    55. As to whether we should increase educational usage requirements 
when ITFS licensees employ digital transmissions, Region IV argued that 
greater educational usage requirements would particularly burden small 
ITFS entities, by indirectly imposing financial and administrative 
burdens before these licensees are in a posture to assume such 
responsibilities.
    56. With respect to whether we should adopt a rolling one-day 
filing window for the submission of two-way MDS and ITFS applications, 
the Alliance of MDS Licensees argued that such a system would place an 
unbearable burden on the limited resources of incumbents, resulting in 
large operators having an advantage over small operators.

C. Description and Number of Small Entities Involved

    57. The RFA generally defines ``small entity'' as having the same 
meaning as the terms ``small business,'' ``small organization,'' and 
``small business

[[Page 65097]]

concern.'' 5 U.S.C. Sec. 601(6). In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.2 A small business concern is 
one which: (1) is independently owned and operated; (2) is not dominant 
in its field of operation; and (3) satisfies any additional criteria 
established by the SBA. Small Business Act, 15 U.S.C. Sec. 632.
---------------------------------------------------------------------------

    \2\ 5 U.S.C. Sec. 601(3) (incorporating by reference the 
definition of ``small business concern'' in 15 U.S.C. Sec. 632). 
Pursuant to 5 U.S.C. Sec. 601(3), the statutory definition of small 
business applies unless an agency after consultation with the Office 
of Advocacy of the Small Business Administration and after an 
opportunity for public comment, establishes one or more definitions 
of such term which are appropriate to the activities of the agency 
and publishes definitions in the Federal Register.
---------------------------------------------------------------------------

    58. MDS: The Commission has defined ``small entity'' for the 
auction of MDS as an entity that, together with its affiliates, has 
average gross annual revenues that are not more than $40 million for 
the preceding three calendar years. 47 CFR 21.961(b)(1). This 
definition of a small entity in the context of MDS auctions has been 
approved by the SBA. See Amendment of Parts 21 and 74 of the 
Commission's Rules With Regard to Filing Procedures in the Multipoint 
Distribution Service and in the Instructional Television Fixed Service 
and Implementation of Section 309(j) of the Communications Act--
Competitive Bidding, MM Docket No. 94-31 and PP Docket No. 93-253, 
Report and Order, 10 FCC Rcd 9589 (1995), 60 FR 36524, Jul. 17, 1995. 
The Commission completed its MDS auction in March 1996 for 
authorizations in 493 basic trading areas (BTAs). Of 67 winning 
bidders, 61 qualified as small entities.3
---------------------------------------------------------------------------

    \3\ One of these small entities, O'ahu Wireless Cable, Inc., was 
subsequently acquired by GTE Media Ventures, Inc., which did not 
qualify as a small entity for purposes of the MDS auction.
---------------------------------------------------------------------------

    59. MDS is also heavily encumbered with licensees of stations 
authorized prior to the auction. The SBA has developed a definition of 
small entities for pay television services, which includes all such 
companies generating $11 million or less in annual receipts. 13 CFR 
121.201. This definition includes multipoint distribution systems, and 
thus applies to MDS licensees and wireless cable operators which did 
not participate in the MDS auction. Information available to us 
indicates that there are 832 of these licensees and operators that do 
not generate revenue in excess of $11 million annually. Therefore, for 
purposes of this FRFA, we find that there are approximately 892 small 
MDS providers as defined by the SBA and the Commission's auction rules, 
and some of these providers may take advantage of our amended rules to 
provide two-way MDS.
    60. ITFS: There are presently 2032 ITFS licensees. All but 100 of 
these licenses are held by educational institutions (these 100 fall in 
the MDS category, above). Educational institutions may be included in 
the definition of a small entity. See 5 U.S.C. Secs. 601 (3)-(5). ITFS 
is a non-pay, non-commercial broadcast service that, depending on SBA 
categorization, has, as small entities, entities generating either 
$10.5 million or less, or $11.0 million or less, in annual receipts. 
See 13 CFR 121.210 (SIC 4833, 4841, and 4899). However, we do not 
collect, nor are we aware of other collections of, annual revenue data 
for ITFS licensees. Thus, we find that up to 1932 of these educational 
institutions are small entities that may take advantage of our amended 
rules to provide two-way ITFS.

D. Summary of Projected Reporting, Recordkeeping and Other Compliance 
Requirements

    61. The Order adopts the following proposals that include 
reporting, recordkeeping, and compliance requirements:
    62. We required MDS and ITFS licensees employing two-way technology 
to attach labels to every subscriber transceiver in a conspicuous 
fashion. In addition, MDS and ITFS licensees employing two-way 
technology will be required to include a full explanation of the labels 
that appear on their transceivers, as well as reference to the 
applicable Commission guidelines, in the instruction manuals and other 
information accompanying their subscriber transceivers.
    63. We required a hub station licensee to formally notify an ITFS 
licensee when a response station is being located in the vicinity of 
any of the ITFS licensee's receive sites. Specifically, we created a 
notification zone with a radius of 1960 feet around each registered 
ITFS receive site and we required that, at least 20 days prior to the 
activation of any response station within such a zone, the hub station 
licensee notify, by certified mail, the appropriate ITFS licensee.
    64. In addition to required information contained on new FCC Form 
331, we required applicants to submit additional data in specified 
formats and on diskettes accompanying the application forms.
    65. While we do not ordinarily require applicants for minor changes 
to ITFS facilities to prepare interference showings or serve them on 
potentially affected parties, we required the preparation and service 
of interference analyses by ITFS licensees who seek to use their 
associated I channels for downstream transmissions.
    66. We will accept applications for MDS and ITFS response stations 
hubs or boosters via a rolling, one-day filing window. Each applicant 
will have to provide interference protection to all facilities existing 
or proposed prior to the filing of its application, but its application 
will take precedence over all subsequently filed applications. 
Applicants will be required to file their applications with all of 
their interference analyses, in both hard copy and on disk.
    67. Applicants for two-way facilities will be required to certify 
that they have met all requirements regarding interference protection 
to existing and prior proposed facilities. The applicant will also be 
required to certify that it has served all potentially affected parties 
with copies of its application, and with its engineering analysis 
supporting its interference compliance claim.

E. Steps Taken to Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    68. The following steps were taken in the Order to minimize the 
significant economic impact on small entities:
    69. The rule changes adopted in the Order to allow two-way 
operations for MDS and ITFS will simplify our licensing system and 
provide greater flexibility in the use of the allotted spectrum to 
licensees. It is expected that such changes will further eliminate 
market entry barriers for small entities.
    70. By allowing for subchannelization, small entity licensees will 
be able to respond to the demands of the market and create an unlimited 
number of channels to carry their current and future communications 
needs. Allowing superchannelization will permit small entity licensees 
to combine their spectrum with other small entity licensees and create 
larger systems to meet their particular operations and to operate at 
greater speeds.
    71. To permit small entity ITFS licensees with limited resources 
adequate time to evaluate a two-way applicant's proposed service plan, 
we adopted a certification procedure whereby applicants are required to 
certify that they have met all requirements regarding interference 
protection to existing and prior proposed facilities. The applicant 
will also be required to certify that it has served all potentially 
affected parties

[[Page 65098]]

with copies of its application and with its engineering analysis 
supporting its interference compliance claim.
    72. In an effort to minimize the impact of our new rules on 
educational ITFS licensees, many of whom are small entities, we 
determined that restricting ITFS eligible use to the downstream video/
audio paradigm would preclude flexibility in service offerings for an 
ITFS licensee which leases excess channel capacity. We provided 
educational entities with additional flexibility to define what ITFS 
usage they regard as educational, in an effort to permit such entities 
to further their educational mission. We did not expand our minimum 
educational usage requirement for digital ITFS transmissions, and we 
added a requirement that 5 percent of an ITFS station's capacity be set 
aside for instructional purposes only.
    73. The following significant alternatives were considered in the 
Order:
    74. We declined to adopt CTN's suggestion that greater suppression 
of spurious emissions is needed on the order of -60 dB for response 
stations operating at +48 dBm, up to -75 dB for response stations 
operating at +63 dBm. We found that modifications made to the spectral 
mask for response stations would completely eliminate the requirements 
that were proposed for such emissions.
    75. We did not adopt NextLevel's suggestion that a maximum 
suppression limit be placed on digital emitters, which would 
effectively remove the out-of-band attenuation requirements for power 
levels below a certain minimum. We found that such a relaxation of out-
of-band limits, in the context of a cellularized CDMA system, could 
result in an adverse impact on the interference environment because, 
unlike other services, hundreds or thousands of low power emitters may 
be transmitting simultaneously and the combined effects of their out-
of-band emissions could be significant.
    76. In the Order, we adopted a Methodology for calculating the 
interference potential of response stations. We rejected CTN's request 
to protect hub receivers only to a distance of 35 miles and make them 
secondary beyond that distance. We concluded that such a step would 
render hubs extremely susceptible to interference and seriously degrade 
the communications capabilities and reliabilities within the hub's RSA. 
We did not adopt EDX Engineering's alternative to Petitioners' response 
station interference Methodology because, for many two-way system 
configurations, EDX's interference calculations will inevitably give 
erroneous results, a shortcoming that was conceded by EDX itself. We 
also did not permit applicants to choose any methodology they wish for 
making interference calculations, as we found that this would 
drastically slow the evaluation of applications and almost certainly 
result in many Petitions to Deny, as licensees and applicants struggled 
to understand the differing and potentially incompatible assumptions 
and calculations incorporated into the various methodologies.
    77. We also declined to adopt Spike's recommendation that hub 
stations be redefined to include transmitting capability. We found that 
this was not necessary because booster and primary stations may be co-
located with hub stations to provide transmission capability, and 
permitting hubs to also transmit would simply add redundancy and 
unnecessary complexity to the interference protection requirements of 
the rules.
    78. We denied CTN's request that guardbands be established 
separating upstream (response station) transmissions from downstream 
ITFS transmissions. We determined that CTN's first proposal, involving 
the creation of 24 MHz-wide guardbands, could result in partially or 
completely eliminating many MHz of potentially useful upstream spectrum 
on the speculative assumption that such action was necessary to protect 
ITFS receive sites from interference. We also declined to adopt CTN's 
subsequent proposals, involving 6 MHz guardbands, believing that it was 
not the case that the proposed response station interference 
Methodology is ``unduly complex'' and will be ineffective in 
determining interference when the potential victim ITFS receive site is 
within a hub station's RSA.
    79. We did not adopt CTN's request for mandatory response station 
testing, as we found that it would impose an unnecessary burden on two-
way licensees.
    80. We denied CTN's request to reallocate all of the 125 kHz 
channels to ITFS and to use them solely for response transmissions. We 
found that reallocation and the complications associated with that is 
not necessary, and that allowing the I channels to be used for point-
to-multipoint transmissions promotes greater options for two-way system 
design and more efficient use of the spectrum. For the same reasons, we 
declined to adopt CTN's suggestion that we render low power boosters 
secondary, and we also declined to adopt Maryland's request that we 
mandate that any non-ITFS use of I channels licensed to an ITFS entity 
be secondary to ITFS use.
    81. We rejected the automatic grant proposal made by the 
Petitioners for granting without review any unopposed two-way license 
application after a 60-day comment period. We also did not adopt the 
proposal specified in the NPRM to set up a system whereby the staff 
would fully review the filed applications and issue a grant or denial. 
Instead, we adopted a certification procedure whereby applicants 
certify that they have met the requirements regarding interference 
protection to existing and prior proposed facilities and have served 
copies of their applications on all affected parties. We determined 
that this approach was needed to facilitate two-way service to the 
public, and that without it, two-way service by MDS operators and/or 
ITFS licensees may not become a reality. The certification requirement 
would also protect the interests of ITFS licensees, many of whom do not 
have the time or resources to evaluate a two-way applicant's proposed 
service plan.
    82. In the Order, we determined that parties will have 60 days from 
the date of the public notice to file petitions to deny against two-way 
applications. We decided that, due to the complex nature of the 
engineering to be filed, a 60 day petition to deny period is more 
reasonable that the usual 30 day period.
    83. We did not adopt HITN's suggestion that we eliminate our rule 
that limits eligible ITFS educational service providers to accredited 
institutions. We found that the primary purpose of ITFS is, and always 
has been, to meet the needs of students enrolled in courses of formal 
instruction. Furthermore, we found that accredited schools have been 
the intended users of ITFS since the origin of the service.
    84. We decided to subject ITFS high power booster stations to 
educational usage requirements, separate from those to which main ITFS 
stations are subject. We determined, however, not to subject ITFS 
response stations or response station hubs to educational usage 
requirements, because the ITFS licensee has no control over which 
upstream transmissions would qualify to satisfy the requirements.
    85. We declined to adopt time-of-day requirements for measuring 
educational usage, in order to provide ITFS licensees with the maximum 
flexibility to determine which uses of their spectrum enhance their 
formal educational mission.

[[Page 65099]]

    86. In the Order, we retained two different but complementary 
requirements of ITFS spectral usage: a minimum of 20 hours per channel 
per week for educational usage, and a minimum reservation of 5% of a 
licensee's capacity that it may not lease. We determined that both 
would be difficult to measure in light of the varied forms that such 
usage can take. We decided that the best course would be to rely on the 
good faith efforts of ITFS licensees to meet these requirements, and we 
did not institute any new, formal proof of compliance reporting 
submissions in this area.

F. Report to Congress

    87. The Commission will send a copy of the Order, including this 
FRFA, in a report to be sent to Congress pursuant to the Small Business 
Regulatory Enforcement Fairness Act of 1996. See 5 USC 
Sec. 801(a)(1)(A). In addition, the Commission will send a copy of the 
Order, including the FRFA, to the Chief Counsel for Advocacy of the 
Small Business Administration. A copy of the Order and FRFA (or 
summaries thereof) will also be published in the Federal Register. See 
5 USC Sec. 604(b).

VI. Procedural Matters

    88. Accordingly, it is ordered that, pursuant to the authority 
contained in Sections 4(i) and (j), 301, 303(f), 303(g), 303(h), 
303(j), 303(r), and 308(b) of the Communications Act of 1934, as 
amended, 47 USC Secs. 154(i), 154(j), 301, 303(f), 303(g), 303(h), 
303(j), 303(r), and 308(b), this Order is adopted, and parts 1, 21, and 
74 of the Commission's Rules, 47 CFR 1, 21, and 74, are amended as set 
forth below.
    89. It is further ordered that the Petition of Wireless Cable Ass'n 
Int'l for Reconsideration and Clarification, MM Docket No. 93-106 
(filed August 12, 1994), and Petition of Alliance for Higher Education, 
et al., MM Docket No. 93-106 (filed August 5, 1994), are granted to the 
extent described in the Order at note 230.
    90. The action contained in the Order has been analyzed with 
respect to the Paperwork Reduction Act of 1995 and found to impose new 
or modified reporting and recordkeeping requirements or burdens on the 
public. Implementation of these new or modified reporting and 
recordkeeping requirements will be subject to approval by the Office of 
Management and Budget as prescribed by the Act. The new or modified 
paperwork requirements contained in this Order (which are subject to 
approval by the Office of Management and Budget) will go into effect 
upon OMB approval.

List of Subjects

47 CFR Part 1

    Environmental impact statements.

47 CFR Part 21

    Communications common carriers, Communications equipment, Reporting 
and recordkeeping requirements, Television.

47 CFR Part 74

    Communications equipment, Education, Reporting and recordkeeping 
requirements, Television.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Rule Changes

    Parts 1, 21 and 74 of Title 47 of the Code of Federal Regulations 
are amended as follows:

PART 1--PRACTICE AND PROCEDURE

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

    Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j), 
155, 225, and 303(r).

    2. In Sec. 1.1307, paragraph (b)(1), Table 1, right column is 
amended by adding the entry regarding MDS licensees directly following 
the existing reference to Multipoint Distribution Service building-
mounted antennas, and by adding the entry regarding ITFS licensees 
directly following the existing reference to part 74, subpart I 
stations, 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) * * *

  Table 1.--Transmitters, Facilities and Operations Subject To Routine
                        Environmental Evaluation
------------------------------------------------------------------------
  Service (title 47 CFR rule
            part)                       Evaluation required if--
------------------------------------------------------------------------
 
         *        *        *        *        *        *        *
Multipoint Distribution        *        *        *
 Service (subpart K of part
 21).
                               MDS licensees are required to attach a
                                label to subscriber transceiver or
                                transverter antennas that:
                                  (1) provides adequate notice regarding
                                   potential radiofrequency safety
                                   hazards, e.g., information regarding
                                   the safe minimum separation distance
                                   required between users and
                                   transceiver antennas; and
                                  (2) references the applicable FCC-
                                   adopted limits for radiofrequency
                                   exposure specified in Sec.  1.1310.
 
         *        *        *        *        *        *        *
Experimental, auxiliary, and   *        *        *
 special broadcast and other
 program distributional
 services (part 74).
                               ITFS licensees are required to attach a
                                label to subscriber transceiver or
                                transverter antennas that:
                                  (1) provides adequate notice regarding
                                   potential radiofrequency safety
                                   hazards, e.g., information regarding
                                   the safe minimum separation distance
                                   required between users and
                                   transceiver antennas; and
                                  (2) references the applicable FCC-
                                   adopted limits for radiofrequency
                                   exposure specified in Sec.  1.1310.
 
         *        *        *        *        *        *        *
------------------------------------------------------------------------


[[Page 65100]]

PART 21--DOMESTIC PUBLIC FIXED RADIO SERVICES

    3. The authority for part 21 continues to read as follows:

    Authority: Secs. 1, 2, 4, 201-205, 208, 215, 218, 303, 307, 313, 
403, 404, 410, 602, 48 Stat. as amended, 1064, 1066, 1070-1073, 
1076, 1077, 1080, 1082, 1083, 1087, 1094, 1098, 1102; 47 U.S.C. 151, 
154, 201-205, 208, 215, 218, 303, 307, 313, 314, 403, 404, 602; 47 
U.S.C. 552, 554.

    4. In Sec. 21.2, the following definitions are added in 
alphabetical order, to read as follows:


Sec. 21.2  Definitions.

* * * * *
    Booster service area. A geographic area to be designated by an 
applicant for a booster station, within which the booster station shall 
be entitled to protection against interference as set forth in this 
part. The booster service area must be specified by the applicant so as 
to not overlap the booster service area of any other booster authorized 
to or proposed by the applicant. However, a booster station may provide 
service to receive sites outside of its booster service area, at the 
licensee's risk of interference.
* * * * *
    Channel. Unless otherwise specified, a channel under this part 
shall refer to a 6 MHz frequency block assigned pursuant to 
Secs. 21.901(b) or 74.902(a) of this chapter.
* * * * *
    Response station hub. A fixed facility licensed to an MDS licensee, 
and operated by an MDS licensee or the lessee of an MDS facility, for 
the reception of information transmitted by one or more MDS response 
stations that utilize digital modulation with uniform power spectral 
density. A response station hub licensed under this part may share 
facilities with other MDS response station hubs, ITFS response station 
hubs authorized pursuant to Sec. 74.939 of this chapter, MDS signal 
booster stations, ITFS signal booster stations, MDS stations, and/or 
ITFS stations.
    Response station hub license. A blanket license authorizing the 
operation of a single response station hub at a specific location and 
the operation of a specified number of associated digital response 
stations of one or more classes at unspecified locations within one or 
more regions of the response service area.
    Sectorization. The use of an antenna system at an MDS station, 
booster station and/or response station hub that is capable of 
simultaneously transmitting multiple signals over the same frequencies 
to different portions of the service area and/or simultaneously 
receiving multiple signals over the same frequencies from different 
portions of the service area.
* * * * *
    4a. In Sec. 21.2, the following definitions, in alphabetical order, 
are revised to read as follows:
    Multichannel Multipoint Distribution Service (MMDS). Those 
Multipoint Distribution Service Channels that use the frequency band 
2596 MHz to 2644 MHz and associated 125 kHz channels.
    Multipoint Distribution Service (MDS). A domestic public radio 
service rendered on microwave frequencies from one or more fixed 
stations transmitting to multiple receiving facilities located at fixed 
points. MDS also may encompass transmissions from response stations to 
response station hubs or associated fixed stations.
    Multipoint Distribution Service response station. A fixed station 
operated by an MDS licensee, the lessee of MDS channel capacity or a 
subscriber of either to communicate with a response station hub or 
associated MDS station. A response station under this part may share 
facilities with other MDS response stations and/or one or more 
Instructional Television Fixed Service (ITFS) response stations 
authorized pursuant to Sec. 74.939 of this chapter or Sec. 74.940 of 
this chapter.
* * * * *
    Signal Booster Station. An MDS station licensed for use in 
accordance with Sec. 21.913 that operates on one or more MDS channels. 
Signal booster stations are intended to augment service as part of a 
distributed transmission system where signal booster stations 
retransmit the signals of one or more MDS stations and/or originate 
transmissions on MDS channels. A signal booster station licensed under 
this part may share facilities with other MDS signal booster stations, 
ITFS signal booster stations authorized pursuant to Sec. 74.985 of this 
chapter, MDS response station hubs and/or ITFS response station hubs.
* * * * *
    5. In Sec. 21.11, paragraphs (f) and (g) are redesignated as 
paragraphs (e) and (f), respectively, and the section heading, 
paragraphs (a) and (d), and newly redesignated paragraph (e) are 
revised, to read as follows:


Sec. 21.11  Miscellaneous forms.

    (a) Licensee qualifications. FCC Form 430 (``Licensee Qualification 
Report'') must be filed annually, no later than March 31 for the end of 
the preceding calendar year, unless the licensee operates solely on a 
common carrier basis and service was not offered at any time during the 
preceding year. Each annual filing must include all changes of 
information required by FCC Form 430 that occurred during the preceding 
year. In those cases in which there has been no change in any of the 
required information, the applicant or licensee, in lieu of submitting 
a new form, may so notify the Commission by letter.
* * * * *
    (d) Assignment of license. FCC Form 702 (``Application for Consent 
to Assignment of Radio Station Construction Authorization or License 
(for Stations in Services Other than Broadcast)'') must be submitted to 
assign voluntarily (as by, for example, contract or other agreement) or 
involuntarily (as by, for example, death, bankruptcy, or legal 
disability) the station license or conditional license. In the case of 
involuntary assignment, the application must be filed within 30 days of 
the event causing the assignment. FCC Form 702 also must be used for 
nonsubstantial (pro forma) assignments. In addition, FCC Form 430 must 
be submitted by the proposed assignee unless such assignee has a 
current and substantially accurate report on file with the Commission. 
Whenever a group of station licenses or conditional licenses in the 
same radio service is to be assigned to a single assignee, a single 
``blanket'' application may be filed to cover the entire group, if the 
application identifies each station by call sign and station location 
and if two copies are provided for each station affected. The 
assignment must be completed within 45 days from the date of 
authorization. Upon consummation of an approved assignment, the 
Commission must be notified by letter of the date of consummation 
within 10 days of its occurrence.
    (e) Transfer of control of corporation holding a conditional 
license or license. FCC Form 704 (``Application for Consent to Transfer 
of Control'') must be submitted in order to voluntarily or 
involuntarily transfer control (de jure or de facto) of a corporation 
holding any conditional licenses or licenses. In the case of 
involuntary transfer of control, the application must be filed within 
30 days of the event causing the transfer of control. FCC Form 704 also 
must be used for nonsubstantial (pro forma) transfers of control. In 
addition, FCC Form 430 must be submitted by the proposed transferee 
unless such transferee has a current and substantially accurate report 
on file with the Commission. Whenever control of a corporation holding 
a group of station licenses or conditional licenses in the

[[Page 65101]]

same radio service is to be transferred to a single transferee, a 
single ``blanket'' application may be filed to cover the entire 
transfer, if the application identifies each station by call sign and 
station location and if two copies are provided for each station 
affected. The transfer must be completed within 45 days from the date 
of authorization. Upon consummation of an approved transfer, the 
Commission must be notified by letter of the date of consummation 
within 10 days of its occurrence.
* * * * *
    6. In Sec. 21.27, paragraph (d) is added, to read as follows:


Sec. 21.27  Public notice period.

* * * * *
    (d) Notwithstanding any other provisions of this part, effective as 
of September 17, 1998, there shall be one one-week window, at such time 
as the Commission shall announce by public notice, for the filing of 
applications for high-power signal booster station, response station 
hub and I channels point-to-multipoint transmissions licenses, during 
which all applications shall be deemed to have been filed as of the 
same day for purposes of Secs. 21.909, 21.913 and 74.939(l) of this 
chapter. Following the publication of a public notice announcing the 
tendering for filing of applications submitted during that window, 
applicants shall have a period of sixty (60) days to amend their 
applications, provided such amendments do not result in any increase in 
interference to any previously proposed or authorized station, or to 
facilities proposed during the window, absent consent of the applicant 
for or conditional licensee or licensee of the station that would 
receive such interference. At the conclusion of that sixty (60) day 
period, the Commission shall publish a public notice announcing the 
acceptance for filing of all applications submitted during the initial 
window, as amended during the sixty (60) day period. All petitions to 
deny such applications must be filed within sixty (60) days of such 
second public notice. On the sixty-first (61st) day after the 
publication of such second public notice, applications for new or 
modified response station hub, booster station and I channels point-to-
multipoint transmissions licenses may be filed and will be processed in 
accordance with the provisions of Secs. 21.909, 21.913 and 74.939(l) of 
this chapter. Notwithstanding Sec. 21.31, each application submitted 
during the initial window shall be granted on the sixty-first (61st) 
day after the Commission shall have given such public notice of its 
acceptance for filing, unless prior to such date either a party in 
interest timely files a formal petition to deny or for other relief 
pursuant to Sec. 21.30(a), or the Commission notifies the applicant 
that its application will not be granted. Where an application is 
granted pursuant to the provisions of this paragraph, the conditional 
licensee or licensee shall maintain a copy of the application at the 
transmitter site or response station hub until such time as the 
Commission issues a license.
    7. In Sec. 21.30, paragraph (a)(4) is revised to read as follows:


Sec. 21.30  Opposition to applications.

    (a) * * *
    (4) Except as provided in Sec. 21.902(i)(6) regarding Instructional 
Television Fixed Service licensees and conditional licensees, in 
Sec. 21.909 regarding MDS response station hubs and in Sec. 21.913 
regarding MDS booster stations, be filed within thirty (30) days after 
the date of public notice announcing the acceptance for filing of any 
such application or major amendment thereto, or identifying the 
tentative selectee of a random selection proceeding in the Multichannel 
Multipoint Distribution Service or for Multipoint Distribution Service 
H-channel stations (unless the Commission otherwise extends the filing 
deadline); and
* * * * *
    8. In Sec. 21.31, paragraph (e)(6)(iv) is revised to read as 
follows:


Sec. 21.31  Mutually exclusive applications.

* * * * *
    (e) * * *
    (6) * * *
    (iv) The change of status by an MDS applicant from common carrier 
to non-common carrier, from non-common carrier to common carrier, or 
from common carrier or non-common carrier to flexibility to alternate 
between common carrier and non-common carrier service.
    9. In Sec. 21.42, paragraph (b)(3) is revised, and paragraph (c)(8) 
is added, to read as follows:


Sec. 21.42  Certain modifications not requiring prior authorization.

* * * * *
    (b) * * *
    (3) The Commission is notified of changes made to facilities by the 
submission of a completed FCC Form 304 within thirty (30) days after 
the changes are made.
* * * * *
    (c) * * *
    (8) A change to a sectorized antenna system comprising an array of 
directional antennas, provided that such system does not change 
polarization or result in an increase in radiated power by more than 
one dB in any direction; provided, however, that notice of such change 
is provided to the Commission on FCC Form 331 within ten (10) days of 
installation.
* * * * *
    10. In Sec. 21.101, paragraph (a), footnote 2 is revised to read as 
follows:


Sec. 21.101  Frequency tolerance.

    (a) * * *

________________

    \2\ Beginning November 1, 1991, equipment authorized to be 
operated in the frequency bands 2150-2162 MHz, 2596-2644 MHz, 2650-
2656 MHz, 2662-2668 MHz, and 2674-2680 MHz for use in the Multipoint 
Distribution Service shall maintain a frequency tolerance within 
1 kHz of the assigned frequency. MDS booster stations 
authorized pursuant to Sec. 21.913(b) shall maintain a frequency 
tolerance within 1 kHz of the assigned frequencies. MDS 
booster stations authorized pursuant to Sec. 21.913(e) and MDS 
response stations authorized pursuant to Sec. 21.909 shall employ 
transmitters with sufficient frequency stability to ensure that the 
emission stays within the authorized bandwidth.
* * * * *
    11. In Sec. 21.118, paragraph (c) is revised to read as follows:


Sec. 21.118  Transmitter construction and installation.

* * * * *
    (c) Each transmitter employed in these services shall be equipped 
with an appropriately labeled pilot lamp or meter which will provide 
continuous visual indication at the transmitter when its control 
circuits have been placed in a condition to activate the transmitter. 
Such requirement will not be applicable to MDS response stations or MDS 
booster stations authorized pursuant to Sec. 21.913(e). In addition, 
facilities shall be provided at each transmitter to permit the 
transmitter to be turned on and off independently of any remote control 
circuits associated therewith.
* * * * *
    12. Section 21.201 is revised to read as follows:


Sec. 21.201  Posting of station license.

    Each licensee shall post at the station, the booster station 
authorized pursuant to Sec. 21.913(b) or the MDS response station hub 
the name, address and telephone number of the custodian of the station 
license or other instrument of authorization if such license or 
instrument of authorization, or a clearly legible photocopy thereof, is 
not maintained at the station, booster

[[Page 65102]]

station or response station hub. Each operator of an MDS booster 
station authorized pursuant to Sec. 21.913(e) shall post at the booster 
station the name, address and telephone number of the custodian of the 
notification filed pursuant to Sec. 21.913(e) if such notification is 
not maintained at the station.
    13. Section 21.304 is revised to read as follows:


Sec. 21.304  Tariffs, reports, and other material required to be 
submitted to the Commission.

    Sections 1.771 through 1.815 of this chapter contain summaries of 
certain materials and reports, including schedule of charges and 
accounting and financial reports, which, when applicable, must be filed 
with the Commission. These requirements likewise shall apply to 
licensees which alternate between rendering service on a common carrier 
and non-common carrier basis.
    14. Section 21.900 is revised to read as follows:


Sec. 21.900  Eligibility.

    (a) Authorizations for stations in this service will be granted to 
existing and proposed communications common carriers and non-common 
carriers. An application will be granted only in cases where it can be 
shown that:
    (1) The applicant is legally, financially, technically, and 
otherwise qualified to render the proposed service; and
    (2) There are frequencies available to enable the applicant to 
render a satisfactory service; and
    (3) The public interest, convenience and necessity would be served 
by a grant thereof.
    (b) The applicant shall state whether service will be provided on a 
common carrier basis, a non-common carrier basis, or alternating 
between a common carrier and non-common carrier basis. In addition, an 
applicant proposing to provide any common carrier service whatsoever 
shall state whether there is any affiliation or relationship to any 
intended or likely subscriber or program originator.
    15. In Sec. 21.901, paragraphs (a), (b), and (d) and note 1 are 
revised, and new paragraph (g) is added, to read as follows:


Sec. 21.901  Frequencies.

    (a) Frequencies in the bands 2150-2162 MHz, 2596-2644 MHz, 2650-
2656 MHz, 2662-2668 MHz, 2674-2680 MHz and 2686-2690 MHz are available 
for assignment to fixed stations in this service. Frequencies in the 
band 2150-2160 MHz are shared with nonbroadcast omnidirectional radio 
systems licensed under other parts of the Commission's Rules, and 
frequencies in the band 2160-2162 MHz are shared with directional radio 
systems authorized in other common carrier services. Frequencies in the 
2596-2644 MHz band are shared with Instructional Television Fixed 
Service stations licensed under part 74 of the Commission's Rules. 
Channels I5, I13, I6 and I14, listed in Sec. 74.939(j) of this chapter, 
are assigned to fixed stations in the 2596-2620 band, and are shared 
with Instructional Television Fixed Service Stations licensed under 
part 74 of the Commission's Rules to operate in this band; 
grandfathered channels I21, I29, I22 and I30, listed in Sec. 74.939(j) 
of this chapter, are licensed under part 21 or part 74 of the 
Commission's Rules, as applicable.
    (b) Applicants may be assigned a channel(s) according to one of the 
following frequency plans:
    (1) At 2150-2156 MHz (designated as Channel 1), or
    (2) At 2156-2162 MHz (designated as Channel 2), or
    (3) At 2156-2160 MHz (designated as Channel 2A), or
    (4) At 2596-2602 MHz, 2608-2614 MHz, 2620-2626 MHz, and 2632-2638 
MHz (designated as Channels E1, E2, E3 and E4, respectively, with the 
four channels to be designated the E-group channels), and Channels I5 
and I13 listed in Sec. 74.939(j) of this chapter,\1\ or
    (5) At 2602-2608 MHz, 2614-2620 MHz, 2626-2632 MHz and 2638-2644 
MHz (designated as Channels F1, F2, F3 and F4, respectively, with the 
four channels to be designated the F-group channels), and Channels I6 
and I14, listed in Sec. 74.939(j) of this chapter,\1\ or
    (6) At 2650-2656 MHz, 2662-2668 MHz and 2674-2680 MHz (designated 
as Channels H1, H2 and H3, respectively, with the three channels to be 
designated the H-group channels).\1\
* * * * *
    (d) An MDS licensee or conditional licensee may apply to exchange 
evenly one or more of its assigned channels with another MDS licensee 
or conditional licensee in the same system, or with an ITFS licensee or 
conditional licensee in the same system where one or both parties 
utilizes digital transmissions or leases capacity to an operator which 
utilizes digital transmissions. The licensees or conditional licensees 
seeking to exchange channels shall file in tandem with the Commission 
separate pro forma assignment of license applications, each attaching 
an exhibit which clearly specifies that the application is filed 
pursuant to a channel exchange agreement. The exchanged channel(s) 
shall be regulated according to the requirements applicable to the 
assignee.
* * * * *
    (g) Frequencies in the bands 2150-2162 MHz, 2596-2644 MHz, 2650-
2656 MHz, 2662-2668 MHz and 2674-2680 MHz are available for point-to-
multipoint use and/or for communications between MDS response stations 
and response station hubs when authorized in accordance with the 
provisions of Sec. 21.909, provided that such frequencies may be 
employed for MDS response stations only when transmitting using digital 
modulation.

________________

    \1\ No 125 kHz channels are provided for Channels E3, E4, F3, 
F4, H1, H2 and H3, except for those grandfathered for Channels E3, 
E4, F3 and F4. The 125 kHz channels associated with Channels E3, E4, 
F3, F4, H1, H2 and H3 are allocated to the Private Operational Fixed 
Point-to-Point Microwave Service, pursuant to Sec. 101.147(g) of 
this chapter.

    16. In Sec. 21.902, the section heading, paragraphs (b)(3), (b)(4) 
(b)(5)(i), (f)(1) and (f)(2) are revised, and new paragraphs (b)(7) and 
(l) are added, to read as follows:


Sec. 21.902  Interference.

* * * * *
    (b) * * *
    (3) Engineer the system to provide at least 45 dB of cochannel 
interference protection within the 56.33 km (35 mile) protected service 
area of any authorized or previously-proposed ITFS or incumbent MDS 
station, and at each previously-registered ITFS receive site (both 
stations utilizing 6 MHz bandwidths).
    (4) Engineer the station to provide at least 0 dB of adjacent 
channel interference protection within the 56.33 km (35 mile) protected 
service area of any authorized or previously-proposed ITFS or incumbent 
MDS station, and at each previously-registered ITFS receive site (both 
stations utilizing 6 MHz bandwidths).
    (5) (i) Engineer the station to limit the calculated free space 
power flux density to -73 dBW/m \2\ (or the appropriate value for 
bandwidth other than 6 MHz) at the boundary of a 56.33 km (35 mile) 
protected service area, where there is an unobstructed signal path from 
the transmitting antenna to the boundary; or alternatively, obtain the 
written consent of the entity authorized for the adjoining area to 
exceed the -73 dBW/m \2\ limiting signal strength at the common 
boundary.
* * * * *

[[Page 65103]]

    (7) Notwithstanding the above, main, booster and response stations 
shall use the following formulas, as applicable, for determining 
compliance with: (1) Radiated field contour limits where bandwidths 
other than 6 MHz are employed at stations utilizing digital modulation 
with uniform power spectral density; and (2) Cochannel and adjacent 
channel D/U ratios where the bandwidths in use at the interfering and 
protected stations are unequal and both stations are utilizing digital 
modulation with uniform power spectral density or one station is 
utilizing such modulation and the other station is utilizing either 6 
MHz NTSC analog modulation or 125 kHz analog modulation (I channels 
only).
    (i) Contour limit: -73 dBW + 10 log (X/6), where X is the bandwidth 
in MHz of the digital channel.
    (ii) Cochannel D/U: 45 dB + 10 log (X1/X2), where X1 is the 
bandwidth in MHz of the protected channel and X2 is the bandwidth in 
MHz of the interfering channel.
    (iii) Adjacent channel D/U: 0 dB + 10 log (X1/X2), where X1 is the 
bandwidth in MHz of the protected channel and X2 is the bandwidth in 
MHz of the interfering channel.
* * * * *
    (f) * * *
    (1) Cochannel interference is defined as the ratio of the desired 
signal to the undesired signal present in the desired channel, at the 
output of a reference receiving antenna oriented to receive the maximum 
desired signal. Harmful interference will be considered present when a 
free space calculation for an unobstructed signal path determines that 
this ratio is less than 45 dB (both stations utilizing 6 MHz 
bandwidths).
    (2) Adjacent channel interference is defined as the ratio of the 
desired signal to undesired signal present in an adjacent channel, at 
the output of a reference receiving antenna oriented to receive the 
maximum desired signal level.
    (i) Harmful interference will be considered present when a free 
space calculation for an unobstructed signal path determines that this 
ratio is less than 0 dB (both stations utilizing 6 MHz bandwidths).
    (ii) In the alternative, harmful interference will be considered 
present for an ITFS station constructed before May 26, 1983, when a 
free space calculation determines that this ratio is less than 10 dB 
(both stations utilizing 6 MHz bandwidths), unless:
    (A) The individual receive site under consideration has been 
subsequently upgraded with up-to-date reception equipment, in which 
case the ratio shall be less than 0 dB. Absent information presented to 
the contrary, however, the Commission will assume that reception 
equipment installation occurred simultaneously with original station 
equipment; or
    (B) The license for an MDS station is conditioned on the proffer to 
the affected ITFS station licensee of equipment capable of providing a 
ratio of 0 dB or more at no expense to the ITFS station licensee, and 
also conditioned, if necessary, on the proffer of installation of such 
equipment; and there has been no showing by the affected ITFS station 
licensee demonstrating good cause and that the proposed equipment will 
not provide a ratio of 0 dB or more, or that installation of such 
equipment, at no expense to the ITFS station licensee, is not possible 
or has not been proffered.
* * * * *
    (l) Specific rules relating to response station hubs, booster 
stations, and 125 kHz channels are set forth in Secs. 21.909, 21.913, 
21.940, 74.939 of this chapter, 74.940 of this chapter and 74.985 of 
this chapter. To the extent those specific rules are inconsistent with 
any rules set forth above, those specific rules shall control.
    17. In Sec. 21.903, paragraphs (a) and (b)(1) are revised, and new 
paragraph (d) is added, to read as follows:


Sec. 21.903  Purpose and permissible service.

    (a) Multipoint Distribution Service channels are available for 
transmissions from MDS stations and associated MDS signal booster 
stations to receive locations, and from MDS response stations to 
response station hubs. When service is provided on a common carrier 
basis, subscriber supplied information is transmitted to points 
designated by the subscriber. When service is provided on a non-common 
carrier basis, transmissions may include information originated by 
persons other than the licensee, licensee-manipulated information 
supplied by other persons, or information originated by the licensee. 
Point-to-point radio return links from a subscriber's location to a MDS 
operator's facilities may also be authorized in the 18,580 through 
18,820 MHz and 18,920 through 19,160 MHz bands. Rules governing such 
operation are contained in subpart I of part 101 of this chapter, the 
Point-to-Point Microwave Radio Service.
    (b) * * *
    (1) Unless service is rendered on a non-common carrier basis, the 
common carrier controls the operation of all receiving facilities 
(e.g., including any equipment necessary to convert the signal to a 
standard television channel, but excluding the television receiver); 
and
* * * * *
    (d) An MDS licensee also may apply for authorization by the 
Commission to alternate, without further authorization required, 
between rendering service on a common carrier and non-common carrier 
basis, provided that the licensee notify the Commission of any service 
status changes at least 30 days in advance of such changes.
    18. Section 21.904 is revised to read as follows:


Sec. 21.904  Transmitter power.

    (a) The maximum EIRP of an MDS main or booster station shall not 
exceed 33 dBW (or, when digital modulation with uniform power spectral 
density and subchannels or superchannels, or 125 kHz channels, are 
used, the appropriately adjusted value based upon the ratio of 6 MHz to 
the subchannel or superchannel, or 125 kHz, bandwidth), except as 
provided in paragraph (b) of this section.
    (b) If a main or booster station sectorizes or otherwise uses one 
or more transmitting antennas with a non-omnidirectional horizontal 
plane radiation pattern, the maximum EIRP over a 6 MHz channel in dBW 
in a given direction shall be determined by the following formula:

EIRP = 33 dBW + 10 log (360/beamwidth) [where 10 log (360/beamwidth) 
 6 dB]. Beamwidth is the total horizontal plane beamwidth of 
the individual transmitting antenna for the station or any sector 
measured at the half-power points. The first term of the equation 
above, 33 dBW, must be adjusted appropriately based upon the ratio of 6 
MHz to the subchannel or superchannel, or 125 kHz, bandwidth.
    (c) An increase in station transmitter power, above currently 
authorized or previously-proposed values, to the maximum values 
provided in paragraphs (a) and (b) of this section, may be authorized, 
if the requested power increase would not cause harmful interference to 
any authorized or previously-proposed, cochannel or adjacent channel 
station entitled to interference protection under the Commission's 
rules, or if an applicant demonstrates that:
    (1) A station that must be protected from interference could 
eliminate that interference by increasing its power; and
    (2) The interfered-with station may increase its own power 
consistent with

[[Page 65104]]

the rules and without causing interference to any MDS booster station 
or response station hub which operates as part of the same coordinated 
system as the interfered-with station; and
    (3) The applicant requesting authorization of a power increase 
agrees to pay all expenses associated with the increase in power by the 
interfered-with station.
    19. In Sec. 21.905, paragraph (b) is revised, and new paragraph (d) 
is added, to read as follows:


Sec. 21.905  Emissions and bandwidth.

* * * * *
    (b) Quadrature amplitude modulation, digital vestigial sideband 
modulation, quadrature phase shift key modulation and code division 
multiple access emissions may be employed, subject to compliance with 
the policies set forth in the Declaratory Ruling and Order, 11 FCC Rcd 
18839 (1996). Different types of emissions may be authorized if the 
applicant describes fully the modulation and bandwidth desired and 
demonstrates that operation of the station will not cause impermissible 
interference. The licensee may subchannelize its authorized bandwidth, 
provided that digital modulation is employed and the aggregate power 
does not exceed the authorized power for the channel, and may utilize 
all or a portion of its authorized bandwidth for MDS response stations 
authorized pursuant to Sec. 21.909. The licensee may also, jointly with 
affected adjacent channel licensees, transmit utilizing bandwidth in 
excess of its authorized frequencies, provided that digital modulation 
is employed, all power spectral density requirements set forth in this 
part are met and the out-of-band emissions restrictions set forth in 
Sec. 21.908 are met at and beyond the edges of the channels employed. 
The wider channels thus created may be redivided to create narrower 
channels.
* * * * *
    (d) Notwithstanding the above, any digital emission which meets the 
uniform power spectral density requirements of the Declaratory Ruling 
and Order may be used in the following circumstances:
    (1) At any MDS main or booster station transmitter which is located 
more than 160.94 km (100 miles) from the nearest boundary of all 
cochannel and adjacent channel ITFS and MDS protected service areas, 
including Basic Trading Areas and Partitioned Service Areas; and
    (2) At all MDS response station transmitters within a response 
service area if all points along the response service area boundary 
line are more than 160.94 km (100 miles) from the nearest boundary of 
all cochannel and adjacent channel ITFS and MDS protected service 
areas, including Basic Trading Areas and Partitioned Service Areas; and
    (3) At any MDS transmitter where all parties entitled by this part 
to interference protection from that transmitter have mutually 
consented to the use at that transmitter of such emissions.
    20. In Sec. 21.906, paragraphs (a) and (d) are revised to read as 
follows:


Sec. 21.906  Antennas.

    (a) Transmitting antennas shall be omnidirectional, except that a 
directional antenna with a main beam sufficiently broad to provide 
adequate service may be used either to avoid possible interference with 
other users in the frequency band, or to provide coverage more 
consistent with distribution of potential receiving points. In lieu of 
an omnidirectional antenna, a station may employ an array of 
directional antennas in order to reuse spectrum efficiently. When an 
applicant proposes to employ a directional antenna, or a licensee 
notifies the Commission pursuant to Sec. 21.42 of the installation of a 
sectorized antenna system, the applicant shall provide the Commission 
with information regarding the orientation of the directional 
antenna(s), expressed in degree of azimuth, with respect to true north, 
and the make and model of such antenna(s).
* * * * *
    (d) Directive receiving antennas shall be used at all points other 
than response station hubs and shall be elevated no higher than 
necessary to assure adequate service. Receiving antenna height shall 
not exceed the height criteria of part 17 of this chapter, unless 
authorization for use of a specific maximum antenna height (above 
ground and above mean sea level) for each location has been obtained 
from the Commission prior to the erection of the antenna. Requests for 
such authorization shall show the inclusive dates of the proposed 
operation. (See part 17 of this chapter concerning the construction, 
marking and lighting of antenna structures.)


Sec. 21.907  [Removed]

    21. Section 21.907 is removed.
    22. In Sec. 21.908, paragraph (b) is redesignated as paragraph (a), 
the section heading and newly redesignated paragraph (a) are revised, 
paragraphs (c) through (e) are removed, and new paragraphs (b) through 
(e) are added, to read as follows:


Sec. 21.908  Transmitting equipment.

    (a) The maximum out-of-band power of an MDS station transmitter or 
booster transmitting on a single 6 MHz channel with an EIRP in excess 
of -9 dBW employing analog modulation shall be attenuated at the 
channel edges by at least 38 dB relative to the peak visual carrier, 
then linearly sloping from that level to at least 60 dB of attenuation 
at 1 MHz below the lower band edge and 0.5 MHz above the upper band 
edge, and attenuated at least 60 dB at all other frequencies. The 
maximum out-of-band power of an MDS station transmitter or booster 
transmitting on a single 6 MHz channel or a portion thereof with an 
EIRP in excess of -9 dBW (or, when subchannels are used, the 
appropriately adjusted value based upon the ratio of the channel-to-
subchannel bandwidths) employing digital modulation shall be attenuated 
at the 6 MHz channel edges at least 25 dB relative to the licensed 
average 6 MHz channel power level, then attenuated along a linear slope 
to at least 40 dB at 250 kHz beyond the nearest channel edge, then 
attenuated along a linear slope from that level to at least 60 dB at 3 
MHz above the upper and below the lower licensed channel edges, and 
attenuated at least 60 dB at all other frequencies. Notwithstanding the 
foregoing, in situations where an MDS station or booster station 
transmits, or where adjacent channel licensees jointly transmit, a 
single signal over more than one contiguous 6 MHz channel utilizing 
digital modulation with an EIRP in excess of -9 dBW (or, when 
subchannels or superchannels are used, the appropriately adjusted value 
based upon the ratio of 6 MHz to the subchannel or superchannel 
bandwidth), the maximum out-of-band power shall be attenuated at the 
channel edges of those combined channels at least 25 dB relative to the 
power level of each channel, then attenuated along a linear slope from 
that level to at least 40 dB at 250 kHz above or below the channel 
edges of those combined channels, then attenuated along a linear slope 
from that level to at least 60 dB at 3 MHz above the upper and below 
the lower edges of those combined channels, and attenuated at least 60 
dB at all other frequencies. However, should harmful interference occur 
as a result of emissions outside the assigned channel, additional 
attenuation may be required. A transmitter licensed prior to November 
1, 1991, that remains at the station site initially licensed, and does 
not comply with this paragraph, may continue to be used for its life if 
it does not cause harmful interference to the operation of any other 
licensee. Any

[[Page 65105]]

non-conforming transmitter replaced after November 1, 1991, must be 
replaced by a transmitter meeting the requirements of this paragraph.
    (b) A booster transmitting on multiple contiguous or non-contiguous 
channels carrying separate signals (a ``broadband'' booster) with an 
EIRP in excess of -9 dBW per 6 MHz channel and employing analog, 
digital or a combination of these modulations shall have the following 
characteristics:
    (1) For broadband boosters operating in the frequency range of 
2.150-2.160/2 GHz, the maximum out-of-band power shall be attenuated at 
the upper and lower channel edges forming the band edges by at least 25 
dB relative to the licensed analog peak visual carrier or digital 
average power level (or, when subchannels are used, the appropriately 
adjusted value based on upon the ratio of the channel-to-subchannel 
bandwidths), then linearly sloping from that level to at least 40 dB of 
attenuation at 0.25 MHz above and below the band edges, then linearly 
sloping from that level to at least 60 dB of attenuation at 3.0 MHz 
above and below the band edges, and attenuated at least 60 dB at all 
other frequencies.
    (2) For broadband boosters operating in the frequency range of 
2.500-2.690 GHz, the maximum out-of-band power shall be attenuated at 
the upper and lower channel edges forming the band edges by at least 25 
dB relative to the licensed analog peak visual carrier or digital 
average power level (or, when subchannels are used, the appropriately 
adjusted value based on upon the ratio of the channel-to-subchannel 
bandwidths), then linearly sloping from that level to at least 40 dB of 
attenuation at 0.25 MHz above and below the band edges, then linearly 
sloping from that level to at least 50 dB of attenuation at 3.0 MHz 
above and below the band edges, then linearly sloping from that level 
to at least 60 dB of attenuation at 20 MHz above and below the band 
edges, and attenuated at least 60 dB at all other frequencies.
    (3) Within unoccupied channels in the frequency range of 2.500-
2.690 GHz, the maximum out-of-band power shall be attenuated at the 
upper and lower channel edges of an unoccupied channel by at least 25 
dB relative to the licensed analog peak visual carrier power level or 
digital average power level of the occupied channels (or, when 
subchannels or 125 kHz channels are used, the appropriately adjusted 
value based upon the ratio of the channel-to-subchannel bandwidths), 
then linearly sloping from that level to at least 40 dB of attenuation 
at 0.25 MHz above and below the occupied channel edges, then linearly 
sloping from that level to at least 50 dB of attenuation at 3.0 MHz 
above and below the occupied channel edges, and attenuated at least 50 
dB at all other unoccupied frequencies.
    (c) Boosters operating with an EIRP less than -9 dBW per 6 MHz 
channel shall have no particular out-of-band power attenuation 
requirement, except that if they cause harmful interference, their 
operation shall be terminated within 2 hours of notification by the 
Commission until the interference can be cured.
    (d) The maximum out-of-band power of an MDS response station using 
all or part of a 6 MHz channel and employing digital modulation shall 
be attenuated at the 6 MHz channel edges at least 25 dB relative to the 
licensed average 6 MHz channel power level, then attenuated along a 
linear slope to at least 40 dB at 250 kHz beyond the nearest channel 
edge, then attenuated along a linear slope from that level to at least 
60 dB at 3 MHz above the upper and below the lower licensed channel 
edges, and attenuated at least 60 dB at all other frequencies. Where 
MDS response stations with digital modulation utilize all or part of 
more than one contiguous 6 MHz channel to form a larger channel (e.g., 
a channel of width 12 MHz), the above-specified attenuations shall be 
applied only at the upper and lower edges of the overall combined 
channel. Notwithstanding these provisions, should harmful interference 
occur as a result of emissions outside the assigned channel(s), 
additional attenuation may be required by the Commission.
    (e) In measuring compliance with the out-of-band emissions 
limitations, the licensee shall employ one of two methods in each 
instance: (1) absolute power measurement of the average signal power 
with one instrument, with measurement of the spectral attenuation on a 
separate instrument; or (2) relative measurement of both the average 
power and the spectral attenuation on a single instrument. The formula 
for absolute power measurements is to be used when the average signal 
power is found using a separate instrument, such as a power meter; the 
formula gives the amount by which the measured power value is to be 
attenuated to find the absolute power value to be used on the spectrum 
analyzer or equivalent instrument at the spectral point of concern. The 
formula for relative power measurements is to be used when the average 
signal power is found using the same instrument as used to measure the 
attenuation at the specified spectral points, and allows different 
resolution bandwidths to be applied to the two parts of the 
measurement; the formula gives the required amplitude separation (in 
dB) between the flat top of the (digital) signal and the point of 
concern.
    For absolute power measurements:

Attenuation in dB (below channel power) = A + 10log 
(CBW / RBw)

    For relative power measurements:

Attenuation in dB (below flat top) = A + 10log 
(RBW1 / RBW2)

Where: 

A= Attenuation specified for spectral point (e.g., 25, 35, 40, 60 dB)
CBW = Channel bandwidth (for absolute power measurements)
RBW = Resolution bandwidth (for absolute power measurements)
RBW1 = Resolution bandwidth for flat top measurement 
(relative)
RBW2 = Resolution bandwidth for spectral point measurement 
(relative)

    23. Section 21.909 is revised to read as follows:


Sec. 21.909  MDS response stations.

    (a) An MDS response station is authorized to provide communication 
by voice, video and/or data signals with its associated MDS response 
station hub or MDS station. An MDS response station may be operated 
only by the licensee of an MDS station, by any lessee of the MDS 
station or response station hub, or by a subscriber of either. The 
authorized channel may be divided to provide distinct subchannels for 
each of more than one response station, provided that digital 
modulation is employed and the aggregate power does not exceed the 
authorized power for the channel. An MDS response station may also, 
jointly with other licensees, transmit utilizing bandwidth in excess of 
that authorized to the station, provided that digital modulation is 
employed, all power spectral density requirements set forth in this 
part are met, and the out-of-band emissions restrictions set forth in 
Sec. 21.908(b) or paragraph (j) of this section are complied with. When 
a 125 kHz channel is employed for response communications, the specific 
channel which may be used by the response station is determined in 
accordance with Secs. 21.901 and 74.939(j) of this chapter.
    (b) MDS response stations that utilize the 2150-2162 MHz band, the 
2500-2686 MHz band, and/or the 125 kHz channels may be installed and 
operated without an individual license, to communicate with a response 
station hub authorized under a response station hub license, provided 
that the conditions set forth in paragraph (g) of this section are 
complied with and that MDS response stations operating in the

[[Page 65106]]

2150-2162 MHz and/or 2500-2686 MHz band(s) employ only digital 
modulation with uniform power spectral density in accordance with the 
Commission's Declaratory Ruling and Order, 11 FCC Rcd 18839 (1996).
    (c) An applicant for a response station hub license shall:
    (1) File FCC Form 331 with Mellon Bank, and certify on that form 
that it has complied with the requirements of paragraphs (c)(2) and (d) 
of this section. Failure to certify compliance and to comply completely 
with the requirements of paragraphs (c)(2) and (d) of this section 
shall result in dismissal of the application or revocation of the 
response station hub license, and may result in imposition of a 
monetary forfeiture; and
    (2) Submit to International Transcription Services, Inc. (``ITS''), 
1231 20th Street, N.W., Washington, DC 20036, both in hard copy, and on 
a 3.5'' computer diskette in ASCII, the following:
    (i) Duplicates of the Form 331 filed with Mellon Bank; and
    (ii) The data required by Appendix D to the Report and Order in MM 
Docket No. 97-217, FCC 98-231, ``Methods for Predicting Interference 
from Response Station Transmitters and to Response Station Hubs and for 
Supplying Data on Response Station Systems''; and
    (iii) The information, showings and certifications required by 
paragraph (d) of this section; and
    (3) Submit to the Commission, only upon Commission staff request, 
duplicates of the submissions required by paragraph (c)(2) of this 
section.
    (d) An applicant for a response station hub license shall, pursuant 
to paragraph (c)(2)(iii) of this section, submit to ITS the following:
    (1) The geographic coordinates, street address, and the height of 
the center line of the reception antenna(s) above mean sea level for 
the proposed response station hub; and
    (2) A specification of:
    (i) the response service area in which the applicant or its lessee 
proposes to install MDS response stations to communicate with the 
response station hub, any regions into which the response service area 
will be subdivided for purposes of interference analysis, and any 
regional classes of response station characteristics which will be used 
to define the operating parameters of groups of response stations 
within each region for purposes of interference analysis, including:
    (A) the maximum height above ground level of the transmission 
antenna that will be employed by any response station in the regional 
class and that will be used in interference analyses; and
    (B) the maximum equivalent isotropic radiated power (EIRP) that 
will be employed by any response station in the regional class and that 
will be used in interference analyses; and
    (C) any sectorization that will be employed, including the 
polarization to be employed by response stations in each sector and the 
geographic orientation of the sector boundaries, and that will be used 
in interference analyses; and
    (D) the combined worst-case outer envelope plot of the patterns of 
all models of response station transmission antennas that will be 
employed by any response station in the regional class to be used in 
interference analyses; and
    (E) the maximum number of response stations that will be operated 
simultaneously in each region using the characteristics of each 
regional class applicable to each region.
    (ii) the channel plan (including any guardbands at the edges of the 
channel) to be used by MDS response stations in communicating with each 
response station hub, including a statement as to whether the applicant 
will employ the same frequencies on which response stations will 
transmit to also transmit on a point-to-multipoint basis from an MDS 
station or MDS booster station; and
    (3) A demonstration that:
    (i) The proposed response station hub is within a protected service 
area, as defined in Sec. 21.902(d) or Sec. 21.933, to which the 
applicant is entitled either
    (A) by virtue of its being the licensee of an incumbent MDS station 
whose channels are being converted for MDS response station use; or
    (B) by virtue of its holding a Basic Trading Area or Partitioned 
Service Area authorization. In the case of an application for response 
stations to utilize one or more of the 125 kHz response channels, such 
demonstration shall establish that the response station hub is within 
the protected service area of the station authorized to utilize the 
associated E-Group or F-Group channel(s); and
    (ii) The entire proposed response service area is within a 
protected service area to which the applicant is entitled either (A) by 
virtue of its being the licensee of an incumbent MDS station whose 
channels are being converted for MDS response station use; or (B) by 
virtue of its holding a Basic Trading Area or Partitioned Service Area 
authorization. In the alternative, the applicant may demonstrate that 
the licensee entitled to any cochannel protected service area which is 
overlapped by the proposed response service area has consented to such 
overlap. In the case of an application for response stations to utilize 
one or more of the 125 kHz response channels, such demonstration shall 
establish that the response service area is entirely within the 
protected service area of the station authorized to utilize the 
associated E-Group or F-Group channel(s), or, in the alternative, that 
the licensee entitled to any cochannel protected service area which is 
overlapped by the proposed response service area has consented to such 
overlap; and
    (iii) The combined signals of all simultaneously operating MDS 
response stations within all response service areas and oriented to 
transmit towards their respective response station hubs, and all 
cochannel MDS stations and booster stations licensed to or applied for 
by the applicant will not generate a power flux density in excess of -
73 dBW/m\2\ (or the pro rata power spectral density equivalent based on 
the bandwidth actually employed in those cases where less than a 6 MHz 
channel is to be employed) outside the boundaries of the applicant's 
protected service area, as measured at locations for which there is an 
unobstructed signal path, except to the extent that consent of affected 
licensees has been obtained or consents have been granted pursuant to 
paragraph (d)(3)(ii) of this section to an extension of the response 
service area beyond the boundaries of the protected service area; and
    (iv) The combined signals of all simultaneously operating MDS 
response stations within all response service areas and oriented to 
transmit towards their respective response station hubs, and all 
cochannel MDS stations and booster stations licensed to or applied for 
by the applicant, will result in a desired to undesired signal ratio of 
at least 45 dB (or the appropriately adjusted value based upon the 
ratio of the channel-to-subchannel bandwidths):
    (A) within the protected service area of any authorized or 
previously-proposed cochannel incumbent MDS or ITFS station with a 
56.33 km (35 miles) protected service area with center coordinates 
located within 160.94 km (100 miles) of the proposed response station 
hub; and
    (B) within the booster service area of any cochannel booster 
station entitled to such protection pursuant to Secs. 21.913(f) or 
74.985(f) of this chapter and located within 160.94 km (100 miles) of 
the proposed response station hub; and
    (C) at any registered receive site of any authorized or previously-
proposed cochannel ITFS station or booster station located within 
160.94 km (100 miles) of the proposed response station

[[Page 65107]]

hub, or, in the alternative, that the licensee of or applicant for such 
cochannel station or hub consents to the application; and
    (v) The combined signals of all simultaneously operating MDS 
response stations within all response service areas and oriented to 
transmit towards their respective response station hubs, and all 
cochannel MDS stations and booster stations licensed to or applied for 
by the applicant, will result in a desired to undesired signal ratio of 
at least 0 dB (or the appropriately adjusted value based upon the ratio 
of the channel to subchannel bandwidths):
    (A) within the protected service area of any authorized or 
previously-proposed adjacent channel incumbent MDS or ITFS station with 
a 56.33 km (35 miles) protected service area with center coordinates 
located within 160.94 km (100 miles) of the proposed response station 
hub; and
    (B) within the booster service area of any adjacent channel booster 
station entitled to such protection pursuant to Secs. 21.913(f) or 
74.985(f) of this chapter and located within 160.94 km (100 miles) of 
the proposed response station hub; and
    (C) at any registered receive site of any authorized or previously-
proposed adjacent channel ITFS station or booster station located 
within 160.94 km (100 miles) of the proposed response station hub, or, 
in the alternative, that the licensee of or applicant for such adjacent 
channel station or hub consents to the application; and
    (vi) The combined signals of all simultaneously operating MDS 
response stations within all response service areas and oriented to 
transmit towards their respective response station hubs and all 
cochannel MDS stations and booster stations licensed to or applied for 
by the applicant will comply with the requirements of paragraph (i) of 
this section and Sec. 74.939(i) of this chapter.
    (4) A certification that the application has been served upon.
    (i) The holder of any cochannel or adjacent channel authorization 
with a protected service area which is overlapped by the proposed 
response service area;
    (ii) The holder of any cochannel or adjacent channel authorization 
with a protected service area that adjoins the applicant's protected 
service area;
    (iii) The holder of a cochannel or adjacent channel authorization 
for any BTA or PSA inside whose boundaries are locations for which 
there is an unobstructed signal path for combined signals from within 
the response station hub applicant's protected service area; and
    (iv) Every licensee of, or applicant for, any cochannel or adjacent 
channel, authorized or previously-proposed, incumbent MDS station with 
a 56.33 km (35 mile) protected service area with center coordinates 
located within 160.94 km (100 miles) of the proposed response station 
hub; and
    (v) Every licensee of, or applicant for, any cochannel or adjacent 
channel, authorized or previously-proposed ITFS station (including any 
booster station or response station hub) located within 160.94 km (100 
miles) of the proposed response station hub.
    (e) Except as set forth in Sec. 21.27(d), applications for response 
station hub licenses may be filed at any time. Notwithstanding any 
other provision of part 21 (including Sec. 21.31), applications for 
response station hub licenses meeting the requirements of paragraph (c) 
of this section shall cut-off applications that are filed on a 
subsequent day for facilities that would cause harmful electromagnetic 
interference to the proposed response station hubs. A response station 
hub shall not be entitled to protection from interference caused by 
facilities proposed on or prior to the day the application for the 
response station hub license is filed. Response stations shall not be 
required to protect from interference facilities proposed on or after 
the day the application for the response station hub license is filed.
    (f) Notwithstanding the provisions of Sec. 21.30(b)(4) and except 
as set forth in Sec. 21.27(d), any petition to deny an application for 
a response station hub license shall be filed no later than the 
sixtieth (60th) day after the date of public notice announcing the 
filing of such application or major amendment thereto. Notwithstanding 
Sec. 21.31 and except as provided in Sec. 21.27(d), an application for 
a response station hub license that meets the requirements of this 
section shall be granted on the sixty-first (61st) day after the 
Commission shall have given public notice of the acceptance for filing 
of it, or of a major amendment to it if such major amendment has been 
filed, unless prior to such date either a party in interest timely 
files a formal petition to deny or for other relief pursuant to 
Sec. 21.30(a), or the Commission notifies the applicant that its 
application will not be granted. Where an application is granted 
pursuant to the provisions of this paragraph, the conditional licensee 
or licensee shall maintain a copy of the application at the response 
station hub until such time as the Commission issues a response station 
hub license.
    (g) An MDS response station hub license shall be conditioned upon 
compliance with the following:
    (1) No MDS response station shall be located beyond the response 
service area of the response station hub with which it communicates; 
and
    (2) No MDS response station shall operate with a transmitter output 
power in excess of 2 watts; and
    (3) No MDS response station shall operate with an EIRP in excess of 
that specified in the application for the response station hub pursuant 
to paragraph (d)(2)(i)(B) of this section for the particular regional 
class of characteristics with which the response station is associated, 
and such response station shall not operate at an excess of 33 dBW EIRP 
(or, when subchannels or superchannels, or 125 kHz channels, are used, 
the appropriately adjusted value based upon the ratio of 6 MHz to the 
subchannel or superchannel, or 125 kHz, bandwidth); and
    (4) Each MDS response station shall employ a transmission antenna 
oriented towards the response station hub with which the MDS response 
station communicates, and such antenna shall be no less directional 
than the worst case outer envelope pattern specified in the application 
for the response station hub pursuant to paragraph (d)(2)(i)(D) of this 
section for the regional class of characteristics with which the 
response station is associated; and
    (5) The combined out-of-band emissions of all response stations 
using all or part of one or multiple contiguous 6 MHz channels and 
employing digital modulation shall comply with Sec. 21.908(d). The 
combined out-of-band emissions of all response stations using all or 
part of one or multiple contiguous 125 kHz channels shall comply with 
paragraph (j) of this section. However, should harmful interference 
occur as a result of emissions outside the assigned channel, additional 
attenuation may be required; and
    (6) The response stations transmitting simultaneously at any time 
within any given region of the response service area utilized for 
purposes of analyzing the potential for interference by response 
stations shall conform to the numerical limits for each class of 
response station proposed in the application for the response station 
hub license. Notwithstanding the foregoing, the licensee of a response 
station hub license may alter the number of response stations of any 
class operated simultaneously in a given region, without prior 
Commission authorization, provided that the licensee:

[[Page 65108]]

    (i) First notifies the Commission of the altered number of response 
stations of such class(es) to be operated simultaneously in such 
region, and certifies in that notification that it has complied with 
the requirements of paragraphs (g)(6)(ii) and (iii) of this section; 
and
    (ii) Provides ITS with a copy of such notification and with an 
analysis establishing that such alteration will not result in any 
increase in interference to the protected service area or protected 
receive sites of any existing or previously-proposed, cochannel or 
adjacent channel MDS or ITFS station or booster station, to the 
protected service area of any MDS Basic Trading Area or Partitioned 
Service Area licensee entitled to protection pursuant to paragraph 
(d)(3) of this section, or to any existing or previously-proposed, 
cochannel or adjacent channel response station hub, or response station 
under Sec. 21.940 or Sec. 74.940 of this chapter; or that the applicant 
for or licensee of such facility has consented to such interference; 
and
    (iii) Serves a copy of such notification and analysis upon each 
party entitled to be served pursuant to paragraph (d)(4) of this 
section; and
    (iv) Submits to the Commission, only upon Commission staff request, 
duplicates of the submissions required by paragraph (g)(6)(ii) of this 
section; and
    (7) Where an application is granted under this section, if a 
facility operated pursuant to that grant causes harmful, unauthorized 
interference to any cochannel or adjacent channel facility, it must 
promptly remedy the interference or immediately cease operations of the 
interfering facility, regardless of whether any petitions to deny or 
for other relief were filed against the application during the 
application process. The burden of proving that a facility operated 
under this section is not causing harmful, unauthorized interference 
lies on the licensee of the alleged interfering facility, following the 
filing of a documented complaint of interference by an affected party; 
and
    (8) In the event any MDS or ITFS receive site suffers interference 
due to block downconverter overload, the licensee of each response 
station hub with a response service area within five miles of such 
receive site shall cooperate in good faith to expeditiously identify 
the source of the interference. Each licensee of a response station hub 
with an associated response station contributing to such interference 
shall bear the joint and several obligation to promptly remedy all 
interference resulting from block downconverter overload at any ITFS 
receive site registered prior to the submission of the application for 
the response station hub license or at any receive site within an MDS 
or ITFS protected service area applied for prior to the submission of 
the application for the response station hub license, regardless of 
whether the receive site suffering the interference was constructed 
prior to or after the construction of the response station(s) causing 
the downconverter overload; provided, however, that the licensee of the 
registered ITFS receive site or the MDS or ITFS protected service area 
must cooperate fully and in good faith with efforts by the response 
station hub licensee to prevent interference before constructing 
response stations and/or to remedy interference that may occur. In the 
event that more than one response station hub licensee contributes to 
block downconverter interference at a MDS or ITFS receive site, the 
licensees of the contributing response station hubs shall cooperate in 
good faith to remedy promptly the interference.
    (h) Applicants must comply with part 17 of this chapter concerning 
notification to the Federal Aviation Administration of proposed antenna 
construction or alteration.
    (i) Response station hubs shall be protected from cochannel and 
adjacent channel interference in accordance with the following 
criteria:
    (1) An applicant for any new or modified MDS or ITFS station 
(including any high-power booster station or response station hub) 
shall be required to demonstrate interference protection to a response 
station hub within 160.94 km (100 miles) of the proposed facilities. In 
lieu of the interference protection requirements set forth in 
Secs. 21.902(b)(3) through (b)(5), 21.938(b)(1) and (2) and (c), and 
74.903 of this chapter, such demonstration shall establish that the 
proposed facility will not increase the effective power flux density of 
the undesired signals generated by the proposed facility and any 
associated main stations, booster stations or response stations at the 
response station hub antenna for any sector. In lieu of the foregoing, 
an applicant for a new MDS or ITFS main station license or for a new or 
modified response station hub or booster license may demonstrate that 
the facility will not increase the noise floor at a reception antenna 
of the response station hub by more than 1 dB for cochannel signals and 
45 dB for adjacent channel signals, provided that:
    (i) The entity submitting the application may only invoke this 
alternative once per response station hub reception sector; or
    (ii) The licensee of the affected response station hub may consent 
to receive a certain amount of interference at its hub.
    (2) Commencing upon the filing of an application for an MDS 
response station hub license and until such time as the application is 
dismissed or denied or, if the application is granted, a certification 
of completion of construction is filed, the MDS station whose channels 
are being utilized shall be entitled both to interference protection 
pursuant to Secs. 21.902(b)(3) through (b)(5), 21.938(b)(1) and (2) and 
(c), and 74.903 of this chapter, and to protection of the response 
station hub pursuant to the preceding paragraph. Unless the application 
for the response station hub license specifies that the same 
frequencies also will be employed for digital and/or analog point-to-
multipoint transmissions by MDS stations and/or MDS booster stations, 
upon the filing of a certification of completion of construction of an 
MDS response station hub where the channels of an MDS station are being 
utilized as response station transmit frequencies, the MDS station 
whose channels are being utilized for response station transmissions 
shall no longer be entitled to interference protection pursuant to 
Secs. 21.902(b)(3) through (b)(5), 21.938(b)(1) and (2) and (c), and 
74.903 of this chapter within the response service area with regard to 
any portion of any 6 MHz channel employed solely for response station 
communications. Upon the certification of completion of construction of 
an MDS response station hub where the channels of an MDS station are 
being utilized for response station transmissions and the application 
for the response station hub license specifies that the same 
frequencies will be employed for point-to-multipoint transmissions, the 
MDS station whose channels are being utilized shall be entitled both to 
interference protection pursuant to Secs. 21.902(b)(3) through (b)(5), 
21.938(b)(1) and (2) and (c), and 74.903 of this chapter, and to 
protection of the response station hub pursuant to the preceding 
provisions of this paragraph.
    (j) 125 kHz wide response channels shall be subject to the 
following requirements: The 125 kHz wide channel shall be centered at 
the assigned frequency. If amplitude modulation is used, the carrier 
shall not be modulated in excess of 100%. If frequency modulation is 
used, the deviation shall not exceed 25 kHz. Any emissions 
outside the channel shall be

[[Page 65109]]

attenuated at the channel edges at least 35 dB below peak output power 
when analog modulation is employed or 35 dB below licensed average 
output power when digital modulation is employed (or, when subchannels 
are used, the appropriately adjusted value based upon the ratio of the 
channel-to-subchannel bandwidths). Any emissions more than 125 kHz from 
either channel edge, including harmonics, shall be attenuated at least 
60 dB below peak output power when analog modulation is employed, or at 
least 60 dB below licensed average output power when digital modulation 
is employed (or, when subchannels are used, the appropriately adjusted 
value based upon the ratio of the channel-to-subchannel bandwidths). 
Notwithstanding the foregoing, in situations where adjacent channel 
licensees jointly transmit over more than one contiguous channel 
utilizing digital modulation, the maximum out-of-band power shall be 
attenuated at the edges of those combined channels at least 35 dB 
relative to the licensed average power level of each channel. Emissions 
more than 125 kHz from either edge of the combined channels, including 
harmonics, shall be attenuated at least 60 dB below peak analog power 
or average digital power of each channel, as appropriate.
    (k) A response station may be operated unattended. The overall 
performance of the response station transmitter shall be checked by the 
hub licensee as often as necessary to ensure that it is functioning in 
accordance with the requirements of the Commission's rules. The 
licensee of a response station hub is responsible for the proper 
operation of all associated response stations and must have reasonable 
and timely access to all associated response station transmitters. 
Response stations shall be installed and maintained by the licensee of 
the associated hub station, or the licensee's employees or agents, and 
protected in such manner as to prevent tampering or operation by 
unauthorized persons. No response hub may lawfully communicate with any 
response station which has not been installed by an authorized person, 
and each response station hub licensee is responsible for maintaining, 
and making available to the Commission upon request, a list containing 
the customer name and site location (street address and latitude/
longitude to the nearest second) of each associated response station, 
plus the technical parameters (e.g., EIRP, emission, bandwidth, and 
antenna pattern, height, orientation and polarization) pertinent to 
each specific response station.
    (l) The transmitting apparatus employed at MDS response stations 
shall have received type certification.
    (m) An MDS response station shall be operated only when engaged in 
communication with its associated MDS response station hub or MDS 
station, or for necessary equipment or system tests and adjustments. 
Radiation of an unmodulated carrier and other unnecessary transmissions 
are forbidden.
    (n) At least 20 days prior to the activation of a response station 
transmitter located within a radius of 1960 feet of a registered or 
previously-applied-for ITFS receive site, the response station hub 
licensee must notify, by certified mail, the licensee of the ITFS site 
of the intention to activate the response station. The notification 
must contain the street address and geographic coordinates (to the 
nearest second) of the response station, a specification of the 
station's EIRP, antenna pattern/orientation/height AMSL, channel(s) to 
be used, as well as the name and telephone number of a contact person 
who will be responsible for coordinating the resolution of any 
interference problems.
    (o) Interference calculations shall be performed in accordance with 
Appendix D to the Report and Order in MM Docket No. 97-217, FCC 98-231, 
``Methods for Predicting Interference From Response Station 
Transmitters and To Response Station Hubs and for Supplying Data on 
Response Station Systems.'' Compliance with the out-of-band emissions 
limitations shall be established in accordance with Sec. 21.908(e).
    24. In Sec. 21.910, the section heading and introductory text, 
paragraph (a), and the introductory text of paragraph (b) are revised, 
and new paragraph (d) is added, to read as follows:


Sec. 21.910  Special procedures for discontinuance, reduction or 
impairment of service by common carrier licensees.

    Any licensee who has elected common carrier status and who seeks to 
discontinue service on a common carrier basis and instead provide 
service on a non-common carrier basis, or who otherwise intends to 
reduce or impair service, shall be subject to the following procedures:
    (a) The carrier shall notify all affected customers of the planned 
discontinuance, reduction or impairment. Notice shall be in writing to 
each affected customer unless the Commission authorizes in advance, for 
good cause shown, another form of notice. Notice shall include the 
following:
    (1) Name and address of carrier; and
    (2) Date of planned service discontinuance, reduction or 
impairment; and
    (3) Points or geographic areas of service affected; and
    (4) How many and which channels are affected; and
    (5) The following statement:

    The FCC normally will authorize this proposed discontinuance of 
service (or reduction or impairment) unless it is shown that end-
users will be affected adversely thereby. Affected customers wishing 
to object should file objections within 45 days after receipt of 
this notification, and address them to the Video Services Division, 
Federal Communications Commission, Washington, DC 20554, referencing 
the Sec. 21.910 Application of (carrier's name). Comments should 
include specific information about the impact of this proposed 
discontinuance (or reduction or impairment) upon end-users, 
including any inability by the customer to acquire reasonable 
substitute service from another provider. The affected customer must 
state that it has provided a copy of the objection to the carrier 
seeking discontinuance.

    (b) The carrier shall file with this Commission, on or after the 
date on which notice has been given to all affected customers, an 
application which shall contain the following:
* * * * *
    (d) The provisions of this section shall not apply to licensees 
authorized by the Commission to alternate, without further 
authorization required, between rendering service on a common carrier 
and non-common carrier basis.
    25. Section 21.913 is revised to read as follows:


Sec. 21.913  Signal booster stations.

    (a) An MDS booster station may reuse channels to repeat the signals 
of MDS stations or to originate signals on MDS channels. The aggregate 
power flux density generated by an MDS station and all associated 
signal booster stations and all simultaneously operating cochannel 
response stations may not exceed -73 dBW/m2 (or, when 
subchannels or 125 kHz channels are used, the appropriately adjusted 
value based upon the ratio of the channel-to-subchannel or 125 kHz 
bandwidths) at or beyond the boundary of the protected service area, as 
defined in Secs. 21.902(d) and 21.933, of the main MDS station whose 
channels are being reused, as measured at locations for which there is 
an unobstructed signal path, unless the consent of the affected 
cochannel licensee is obtained.
    (b) An MDS licensee or conditional licensee who is a response 
station hub

[[Page 65110]]

licensee, conditional licensee or applicant may secure a license for an 
MDS signal booster station that has a maximum power level in excess of 
-9 dBW EIRP (or, when subchannels or superchannels, or 125 kHz 
channels, are used, the appropriately adjusted value based upon the 
ratio of 6 MHz to the subchannel or superchannel, or 125 kHz, 
bandwidth) and that employs only digital modulation with uniform power 
spectral density in accordance with the Commission's Declaratory Ruling 
and Order, 11 FCC Rcd 18839 (1996) (a ``high-power MDS signal booster 
station''). The applicant for a high-power MDS signal booster station 
shall file FCC Form 331 with Mellon Bank, and certify on that form that 
the applicant has complied with the additional requirements of 
paragraph (b) of this section. Failure to certify compliance and to 
comply completely with the following requirements of paragraph (b) of 
this section shall result in dismissal of the application or revocation 
of the high-power MDS signal booster station license, and may result in 
imposition of a monetary forfeiture. The applicant for a high-power MDS 
signal booster station additionally is required to submit to 
International Transcription Services, Inc., 1231 20th Street, N.W., 
Washington, DC 20036, both in hard copy, and on a 3.5'' computer 
diskette in ASCII, and likewise to submit to the Commission, only upon 
Commission staff request, duplicates of the Form 331 filed with Mellon 
Bank, and the following information:
    (1) A demonstration that the proposed signal booster station site 
is within the protected service area, as defined in Secs. 21.902(d) and 
21.933, of the MDS station whose channels are to be reused; and
    (2) A study which demonstrates that the aggregate power flux 
density of the MDS station and all associated booster stations and 
simultaneously operating cochannel response stations licensed to or 
applied for by the applicant, measured at or beyond the boundary of the 
protected service area of the MDS station whose channels are to be 
reused, does not exceed -73 dBW/m2 (or, when subchannels or 
125 kHz channels are used, the appropriately adjusted value based upon 
the ratio of the channel-to-subchannel or 125 kHz bandwidths) at 
locations for which there is an unobstructed signal path, unless the 
consent of the affected licensees has been obtained; and
    (3) In lieu of the requirements of Sec. 21.902(c) and (i), a study 
which demonstrates that the proposed booster station will cause no 
harmful interference (as defined in Sec. 21.902(f)) to cochannel and 
adjacent channel, authorized or previously-proposed ITFS and MDS 
stations with protected service area center coordinates as specified in 
Sec. 21.902(d), to any authorized or previously-proposed response 
station hubs, booster stations or I channel stations associated with 
such ITFS and MDS stations, or to any previously-registered ITFS 
receive sites, within 160.94 kilometers (100 miles) of the proposed 
booster station's transmitter site. Such study shall consider the 
undesired signal levels generated by the proposed signal booster 
station, the main station, all other licensed or previously-proposed 
associated booster stations, and all simultaneously operating cochannel 
response stations licensed to or applied for by the applicant. In the 
alternative, a statement from the affected MDS or ITFS licensee or 
conditional licensee stating that it does not object to operation of 
the high-power MDS signal booster station may be submitted; and
    (4) A description of the booster service area; and
    (5) A demonstration either
    (i) That the booster service area is entirely within the protected 
service area to which the licensee of a station whose channels are 
being reused is entitled by virtue of its being the licensee of an 
incumbent MDS station, or by virtue of its holding a Basic Trading Area 
or Partitioned Service Area authorization; or
    (ii) That the licensee entitled to any cochannel protected service 
area which is overlapped by the proposed booster service area has 
consented to such overlap; and
    (6) A demonstration that the proposed booster service area can be 
served by the proposed booster without interference; and
    (7) A certification that copies of the materials set forth in 
paragraph (b) of this section have been served upon the licensee or 
conditional licensee of each station (including each response station 
hub and booster station) required to be studied pursuant to paragraph 
(b)(3) of this section, and upon any affected holder of a Basic Trading 
Area or Partitioned Service Area authorization pursuant to paragraph 
(b)(2) of this section.
    (c) Except as provided in Sec. 21.27(d), applications for high-
power MDS signal booster station licenses may be filed at any time. 
Notwithstanding any other provision of part 21 (including Sec. 21.31), 
applications for high-power MDS signal booster station licenses meeting 
the requirements of paragraph (b) of this section shall cut-off 
applications that are filed on a subsequent day for facilities that 
would cause harmful electromagnetic interference to the proposed 
booster stations.
    (d) Notwithstanding the provisions of Sec. 21.30(a)(4) and except 
as provided in Sec. 21.27(d), any petition to deny an application for a 
high-power MDS signal booster station license shall be filed no later 
than the sixtieth (60th) day after the date of public notice announcing 
the filing of such application or major amendment thereto. 
Notwithstanding Sec. 21.31 and except as provided in Sec. 21.27(d), an 
application for a high-power MDS signal booster station license that 
meets the requirements of paragraph (b) of this section shall be 
granted on the sixty-first (61st) day after the Commission shall have 
given public notice of the acceptance for filing of it, or of a major 
amendment to it if such major amendment has been filed, unless prior to 
such date either a party in interest timely files a formal petition to 
deny or for other relief pursuant to Sec. 21.30(a), or the Commission 
notifies the applicant that its application will not be granted. Where 
an application is granted pursuant to the provisions of this paragraph, 
the conditional licensee or licensee shall maintain a copy of the 
application at the MDS booster station until such time as the 
Commission issues a high-power MDS signal booster station license.
    (e) Eligibility for a license for an MDS signal booster station 
that has a maximum power level of -9 dBW EIRP (or, when subchannels or 
superchannels, or 125 kHz channels, are used, the appropriately 
adjusted value based upon the ratio of 6 MHz to the subchannel or 
superchannel, or 125 kHz, bandwidth) (a ``low-power MDS signal booster 
station'') shall be restricted to an MDS licensee or conditional 
licensee. A low-power MDS signal booster station may operate only on 
one or more MDS channels that are licensed to the licensee of the MDS 
booster station, but may be operated by a third party with a fully-
executed lease or consent agreement with the MDS conditional licensee 
or licensee. An MDS licensee or conditional licensee may install and 
commence operation of a low-power MDS signal booster station for the 
purpose of retransmitting the signals of the MDS station or for 
originating signals. Such installation and operation shall be subject 
to the condition that for sixty (60) days after installation and 
commencement of operation, no objection or petition to deny is filed by 
an authorized cochannel or adjacent channel ITFS or MDS station with a 
transmitter within 8.0 kilometers (5 miles) of the

[[Page 65111]]

coordinates of the low-power MDS signal booster station. An MDS 
licensee or conditional licensee seeking to install a low-power MDS 
signal booster station under this rule must, within 48 hours after 
installation, submit FCC Form 331 to the Commission in Washington, DC, 
and submit to International Transcription Services, Inc., 1231 20th 
Street, N.W., Washington, DC 20036, both in hard copy, and on a 3.5'' 
computer diskette in ASCII, duplicates of the Form 331 filed with the 
Commission, and the following (which also shall be submitted to the 
Commission only upon Commission staff request at any time):
    (1) A description of the signal booster technical specifications 
(including an antenna envelope plot or, if the envelope plot is on file 
with the Commission, the make and model of the antenna, antenna gain 
and azimuth), the coordinates of the booster, the height of the center 
of radiation above mean sea level, the street address of the signal 
booster and a description of the booster service area; and
    (2) A demonstration either
    (i) That the booster service area is entirely within the protected 
service area to which each licensee of a station whose channels are 
being reused is entitled by virtue of its being the licensee of an 
incumbent MDS station, or by virtue of its holding a Basic Trading Area 
or Partitioned Service Area authorization; or
    (ii) That the licensee entitled to any cochannel protected service 
area which is overlapped by the proposed booster service area has 
consented to such overlap; and
    (3) A demonstration that the proposed booster service area can be 
served by the proposed booster without interference; and
    (4) A certification that no Federal Aviation Administration 
determination of No Hazard to Air Navigation is required under part 17 
of this chapter or, if such determination is required, either:
    (i) A statement of the FCC Antenna Structure Registration Number; 
or
    (ii) If an FCC Antenna Structure Registration Number has not been 
assigned for the antenna structure, the filer must indicate the date 
the application by the antenna structure owner to register the antenna 
structure was filed with the FCC in accordance with part 17 of this 
chapter; and
    (5) A certification that:
    (i) The maximum power level of the signal booster transmitter does 
not exceed -9 dBW EIRP (or, when subchannels or superchannels, or 125 
kHz channels, are used, the appropriately adjusted value based upon the 
ratio of 6 MHz to the subchannel or superchannel, or 125 kHz, 
bandwidth); and
    (ii) Where the booster is operating on channel D4, E1, F1, E2, F2, 
E3, F3, E4, F4 and/or G1, no registered receiver of an ITFS E or F 
channel station, constructed prior to May 26, 1983, is located within a 
1.61 km (1 mile) radius of the coordinates of the booster, or in the 
alternative, that a consent statement has been obtained from the 
affected ITFS licensee; and
    (iii) The applicant has complied with Sec. 1.1307 of this chapter; 
and
    (iv) Each MDS and/or ITFS station licensee (including the licensees 
of booster stations and response station hubs) with protected service 
areas and/or registered receivers within a 8 km (5 mile) radius of the 
coordinates of the booster has been given notice of its installation; 
and
    (v) The signal booster site is within the protected service area of 
the MDS station whose channels are to be reused; and
    (vi) The aggregate power flux density of the MDS station and all 
associated booster stations and simultaneously operating cochannel 
response stations licensed to or applied for by the applicant, measured 
at or beyond the boundary of the protected service areas of the MDS 
stations whose channels are to be reused, does not exceed -73 dBW/m\2\ 
(or, when subchannels or 125 kHz channels are used, the appropriately 
adjusted value based upon the ratio of the channel-to-subchannel or 125 
kHz bandwidths) at locations for which there is an unobstructed signal 
path, unless the consent of the affected licensees has been obtained; 
and
    (vii) The antenna structure will extend less than 6.10 meters (20 
feet) above the ground or natural formation or less than 6.10 meters 
(20 feet) above an existing manmade structure (other than an antenna 
structure); and
    (viii) The MDS conditional licensee or licensee understands and 
agrees that, in the event harmful interference is claimed by the filing 
of an objection or petition to deny, the conditional licensee or 
licensee must terminate operation within two (2) hours of notification 
by the Commission, and must not recommence operation until receipt of 
written authorization to do so by the Commission.
    (f) Commencing upon the filing of an application for a high-power 
MDS signal booster station license and until such time as the 
application is dismissed or denied or, if the application is granted, a 
certification of completion of construction is filed, an applicant for 
any new or modified MDS or ITFS station (including a response station 
hub, high-power booster station, or I Channels station) shall 
demonstrate compliance with the interference protection requirements 
set forth in Secs. 21.902 (b)(3) through (b)(5), 21.938 (b) (1) and (2) 
and (c), or 74.903 of this chapter with respect to any previously-
proposed or authorized booster service area both using the transmission 
parameters of the high-power MDS signal booster station (e.g., EIRP, 
polarization(s) and antenna height) and the transmission parameters of 
the MDS station whose channels are to be reused by the high-power MDS 
signal booster station. Upon the filing of a certification of 
completion of construction of an MDS booster station applied for 
pursuant to paragraph (b) of this section, or upon the submission of an 
MDS booster station notification pursuant to paragraph (e) of this 
section, the MDS station whose channels are being reused by the MDS 
signal booster shall no longer be entitled to interference protection 
pursuant to Secs. 21.902 (b)(3) through (b)(5), 21.938 (b) (1) and (2) 
and (c), and 74.903 of this chapter within the booster service area 
based on the transmission parameters of the MDS station whose channels 
are being reused. A booster station shall not be entitled to protection 
from interference caused by facilities proposed on or prior to the day 
the application or notification for the booster station is filed. A 
booster station shall not be required to protect from interference 
facilities proposed on or after the day the application or notification 
for the booster station is filed.
    (g) Where an application is granted under paragraph (d) of this 
section, if a facility operated pursuant to that grant causes harmful, 
unauthorized interference to any cochannel or adjacent channel 
facility, it must promptly remedy the interference or immediately cease 
operations of the interfering facility, regardless of whether any 
petitions to deny or for other relief were filed against the 
application during the application process. The burden of proving that 
a high-power MDS signal booster station is not causing harmful, 
unauthorized interference lies on the licensee of the alleged 
interfering facility, following the filing of a documented complaint of 
interference by an affected party.
    (h) In the event any MDS or ITFS receive site suffers interference 
due to block downconverter overload, the licensee of each signal 
booster station within five miles of such receive site shall cooperate 
in good faith to

[[Page 65112]]

expeditiously identify the source of the interference. Each licensee of 
a signal booster station contributing to such interference shall bear 
the joint and several obligation to promptly remedy all interference 
resulting from block downconverter overload at any ITFS receive site 
registered prior to the submission of the application or notification 
for the signal booster station or at any receive site within an MDS or 
ITFS protected service area applied for prior to the submission of the 
application or notification for the signal booster station, regardless 
of whether the receive site suffering the interference was constructed 
prior to or after the construction of the signal booster station(s) 
causing the downconverter overload; provided, however, that the 
licensee of the registered ITFS receive site or the MDS or ITFS 
protected service area must cooperate fully and in good faith with 
efforts by the signal booster station licensee to prevent interference 
before constructing the signal booster station and/or to remedy 
interference that may occur. In the event that more than one signal 
booster station licensee contributes to block downconverter 
interference at a MDS or ITFS receive site, the licensees of the 
contributing signal booster stations shall cooperate in good faith to 
remedy promptly the interference.
    26. In Sec. 21.925, paragraph (b) is revised to read as follows:


Sec. 21.925  Applications for BTA authorizations and MDS station 
licenses.

* * * * *
    (b) Separate long-form applications must be filed for each 
individual MDS station license sought within the protected service area 
of a BTA or PSA, including:
    (1) An application for each E-channel group, F-channel group, and 
single H, 1, and 2A channel station license sought;
    (2) An application for each site where one or more MDS response 
station hub license(s) is/are sought, provided that the technical 
parameters of each MDS response station hub are the same;
    (3) An application for each site where one or more MDS booster 
station(s) will operate with an EIRP in excess of -9 dBW (or, when 
subchannels or superchannels, or 125 kHz channels, are used, the 
appropriately adjusted value based upon the ratio of 6 MHz to the 
subchannel or superchannel, or 125 kHz, bandwidth);
    (4) An application for authority to operate at an MDS station in 
the area vacated by an MDS station incumbent that has forfeited its 
station license; and
    (5) An application for each ITFS-channel group station license 
sought in accordance with Secs. 74.990 and 74.991 of this chapter.
* * * * *
    27. In Sec. 21.938, paragraph (b) introductory text, and paragraphs 
(c)(4), (e) and (f), are revised to read as follows:


Sec. 21.938  BTA and PSA technical and interference provisions.

* * * * *
    (b) Unless the affected parties have executed a written 
interference agreement in accordance with Sec. 21.937, and subject to 
the provisions of Secs. 21.909, 21.913, 21.940, 74.939 of this chapter, 
74.940 of this chapter and 74.985 of this chapter regarding the 
protection of response station hubs, booster service areas and 125 kHz 
channels from harmful electromagnetic interference, stations licensed 
to a BTA or PSA authorization holder must not cause harmful 
electromagnetic interference to the following:
    * * *
    (c) * * *
    (4) An ITFS station authorized before September 15, 1995 may be 
modified, provided the power flux density of that station does not 
exceed -73 dBW/m\2\ (or the appropriate value for bandwidth other than 
6 MHz) at locations along the 56.33 km (35 mile) circle centered on the 
then-existing transmitting antenna site or service area of a collocated 
incumbent MDS station, as applicable.
* * * * *
    (e) Unless specifically excepted, BTA or PSA authorization holders 
are governed by the interference protection and other technical 
provisions applicable to MDS.
    (f) The calculated free space power flux density from an MDS 
station, other than an incumbent MDS station, may not exceed -73 dBW/
m\2\ (or the appropriate value for bandwidth other than 6 MHz) at 
locations on BTA or PSA boundaries for which there is an unobstructed 
signal path from the transmitting antenna to the boundary, unless the 
applicant has obtained the written consent of the authorization holder 
for the affected BTA or PSA.
* * * * *
    28. New Sec. 21.940 is added, to read as follows:


Sec. 21.940  Individually licensed 125 kHz channel MDS response 
stations.

    (a) The provisions of Sec. 21.909(a), (e), (h), (j), (l) and (m), 
and Sec. 74.939(j) of this chapter, also shall apply with respect to 
authorization of a 125 kHz channel(s) MDS response station not under a 
response station hub license. The applicant shall comply with the 
requirements of Sec. 21.902, and Sec. 21.938 where appropriate, 
including the provisions of Secs. 21.909, 21.913, 74.939 of this 
chapter and 74.985 of this chapter regarding the protection of response 
station hubs and booster service areas from harmful electromagnetic 
interference, using the appropriately adjusted interference protection 
values based upon the ratio of the bandwidths in use, where the 
authorized or previously-proposed cochannel or adjacent channel station 
is operated or to be operated in a system with one or more response 
station hub(s).
    (b) An application for a license to operate a new or modified 125 
kHz channel(s) MDS response station not under a response station hub 
license shall be filed with Mellon Bank on FCC Form 304. The applicant 
shall supply the following information on that form for each response 
station:
    (1) The geographic coordinates and street address of the MDS 
response station transmitting antenna; and
    (2) The manufacturer's name, type number, operating frequency, and 
power output of the proposed MDS response station transmitter; and
    (3) The type of transmitting antenna, power gain, azimuthal 
orientation and polarization of the major lobe of radiation in degrees 
measured clockwise from True North; and
    (4) A sketch giving pertinent details of the MDS response station 
transmitting antenna installation including ground elevation of the 
transmitter site above mean sea level; overall height above ground, 
including appurtenances, of any ground-mounted tower or mast on which 
the transmitting antenna will be mounted or, if the tower or mast is or 
will be located on an existing building or other manmade structure, the 
separate heights above ground of the building and the tower or mast 
including appurtenances; the location of the tower or mast on the 
building; the location of the transmitting antenna on the tower or 
mast; and the overall height of the transmitting antenna above ground.
    (c) Each MDS response station licensed under this section shall 
comply with the following:
    (1) No MDS response station shall be located beyond the protected 
service area of the MDS station with which it communicates; and
    (2) No MDS response station shall operate with a transmitter output 
power in excess of 2 watts; and
    (3) No MDS response station shall operate at an excess of 16 dBW 
EIRP.
    (d) During breaks in communications, the unmodulated carrier 
frequency shall

[[Page 65113]]

be maintained within 35 kHz of the assigned frequency at all times. 
Adequate means shall be provided to insure compliance with this rule.
    (e) Each MDS response station shall employ a directive transmitting 
antenna oriented towards the transmitter site of the associated MDS 
station or towards the response station hub with which the MDS response 
station communicates. The beamwidth between half power points shall not 
exceed 15 deg. and radiation in any minor lobe of the antenna radiation 
pattern shall be at least 20 dB below the power in the main lobe of 
radiation.
    (f) A response station may be operated unattended. The overall 
performance of the response station transmitter shall be checked by the 
licensee of the station or hub receiving the response signal, or by the 
licensee's employees or agents, as often as necessary to ensure that 
the transmitter is functioning in accordance with the requirements of 
the Commission's rules. The licensee of the station or hub receiving 
the response signal is responsible for the proper operation of the 
response station and must have reasonable and timely access to the 
response station transmitter. The response station shall be installed 
and maintained by the licensee of the associated station or hub, or the 
licensee's employees or agents, and protected in such manner as to 
prevent tampering or operation by unauthorized persons. No response 
station which has not been installed by an authorized person may 
lawfully communicate with any station or hub.

PART 74--EXPERIMENTAL RADIO, AUXILIARY, SPECIAL BROADCAST AND OTHER 
PROGRAM DISTRIBUTIONAL SERVICES

    29. The authority for part 74 continues to read as follows:

    Authority: 47 U.S.C. 154, 303, 307, and 554.

    30. In Sec. 74.901, the following definitions are added in 
alphabetical order, to read as follows:


Sec. 74.901  Definitions.

* * * * *
    Booster service area. A geographic area to be designated by an 
applicant for a booster station, within which the booster station shall 
be entitled to protection against interference as set forth in this 
part. The booster service area must be specified by the applicant so as 
to not overlap the booster service area of any other booster authorized 
to or proposed by the applicant. However, a booster station may provide 
service to receive sites outside of its booster service area, at the 
licensee's risk of interference. The booster station must be capable of 
providing substantial service within the designated booster service 
area.
    Channel. Unless otherwise specified, a channel under this part 
shall refer to a 6 MHz frequency block assigned pursuant to 
Secs. 21.901(b) of this chapter or 74.902(a).
* * * * *
    Response station hub. A fixed facility licensed to an ITFS 
licensee, and operated by an ITFS licensee or the lessee of an ITFS 
channel, for the reception of information transmitted by one or more 
ITFS response stations that utilize digital modulation with uniform 
power spectral density. A response station hub licensed under this part 
may share facilities with other ITFS response station hubs, MDS 
response station hubs authorized pursuant to Sec. 21.909 of this 
chapter, MDS signal booster stations, ITFS signal booster stations, MDS 
stations, and/or ITFS stations.
    Response station hub license. A blanket license authorizing the 
operation of a single response station hub at a specific location and 
the operation of a specified number of associated digital response 
stations of one or more classes at unspecified locations within one or 
more regions of the response service area.
    Sectorization. The use of an antenna system at an ITFS station, 
booster station and/or response station hub that is capable of 
simultaneously transmitting multiple signals over the same frequencies 
to different portions of the service area and/or simultaneously 
receiving multiple signals over the same frequencies from different 
portions of the service area.
    Signal booster station. An ITFS station licensed for use in 
accordance with Sec. 74.985 that operates on one or more ITFS channels. 
Signal booster stations are intended to augment service as part of a 
distributed transmission system where signal booster stations 
retransmit the signal of an ITFS station and/or originate information. 
A signal booster station licensed under this part may share facilities 
with other ITFS signal booster stations, MDS signal booster stations 
authorized pursuant to Sec. 21.913 of this chapter, MDS response 
stations and/or ITFS response stations.
* * * * *
    30a. In Sec. 74.901, the following definitions, in alphabetical 
order, are revised to read as follows:
    Instructional television fixed station. A fixed station licensed to 
an educational organization and intended primarily for video, data, or 
voice transmissions of instructional, cultural, and other types of 
educational material to one or more fixed receiving locations.
    ITFS response station. A fixed station operated by an ITFS 
licensee, the lessee of ITFS channel capacity or a subscriber of either 
to communicate with a response station hub or associated ITFS station. 
A response station under this part may share facilities with other ITFS 
response stations and/or one or more Multipoint Distribution Service 
(MDS) response stations authorized pursuant to Sec. 21.909 of this 
chapter or Sec. 21.940 of this chapter.
* * * * *
    31. In Sec. 74.902, paragraphs (f) through (j) are redesignated as 
paragraphs (g) through (k), respectively, paragraphs (c) through (e) 
are revised, and new paragraph (f) and a new note to paragraph (c) are 
added, to read as follows:


Sec. 74.902  Frequency assignments.

* * * * *
    (c) Channels 2596-2602, 2602-2608, 2608-2614, 2614-2620, 2620-2626, 
2626-2632, 2632-2638, and 2638-2644 MHz and the corresponding 125 kHz 
channels listed in Sec. 74.939(j) are shared with the Multipoint 
Distribution Service. No new Instructional Television Fixed Service 
applications for these channels filed after May 25, 1983 will be 
accepted, except in accordance with paragraph (f) of this section. In 
those areas where Multipoint Distribution Service use of these channels 
is allowed, Instructional Television Fixed Service users of these 
channels will continue to be afforded protection from harmful cochannel 
and adjacent channel interference from Multipoint Distribution Service 
stations, pursuant to Sec. 21.902 of this chapter.

Note to Paragraph (C):

    No 125 kHz channels are provided for Channels E3, E4, F3 and F4, 
except for those grandfathered. The 125 kHz channels associated with 
Channels E3, E4, F3 and F4 are allocated to the Private Operational 
Fixed Point-to-Point Microwave Service, pursuant to Sec. 101.147(g) 
of this chapter.

    (d) Frequencies will be assigned as follows:
    (1) A licensee is limited to the assignment of no more than four 6 
MHz and four 125 kHz channels for use in a single area of operation, 
all of which 6 MHz channels initially should be selected from the same 
Group listed in paragraph (a) of this section, but which later may come 
from different Groups as a result of authorized channel swaps pursuant 
to paragraph (f) of this section. An area of operation is defined as 
the area 35 miles or less from the ITFS main

[[Page 65114]]

station transmitter. Applicants shall not apply for more channels than 
they intend to construct within a reasonable time, simply for the 
purpose of reserving additional channels. The number of channels 
authorized to an applicant will be based on the demonstration of need 
for the number of channels requested. The Commission will take into 
consideration such factors as the amount of use of any currently 
assigned channels and the amount of proposed use of each channel 
requested, the amount of, and justification for, any repetition in the 
schedules, and the overall demand and availability of ITFS channels in 
the community. For those applicant organizations formed for the purpose 
of serving accredited institutional or governmental organizations, 
evaluation of the need will only consider service to those specified 
receive sites which submitted supporting documentation pursuant to 
Sec. 74.932(a)(4).
    (2) An applicant leasing excess capacity and proposing a schedule 
which complies in all respects with the requirements of Sec. 74.931 (c) 
or (d) will have presumptively demonstrated need, in accordance with 
paragraph (d)(1) of this section, for no more than four channels. This 
presumption is rebuttable by demonstrating that the application does 
not propose to comport with our educational usage requirements, that 
is, to transmit some formal educational usage, as defined in 
Sec. 74.931(a), and to transmit the requisite minimum educational usage 
of Sec. 74.931 (c) or (d) for genuinely educational purposes.
    (e) Frequencies in the bands 2500-2650 MHz, 2656-2662 MHz, 2668-
2674 MHz, and 2680-2686 MHz are available for point-to-multipoint use 
and/or for communications between ITFS response stations and response 
station hubs when authorized in accordance with the provisions of 
Sec. 74.939, provided that such frequencies may be employed for ITFS 
response stations only when transmitting using digital modulation.
    (f) An ITFS licensee or conditional licensee may apply to exchange 
evenly one or more of its assigned channels with another ITFS licensee 
or conditional licensee in the same system, or with an MDS licensee or 
conditional licensee in the same system where one or both parties 
utilizes digital transmissions or leases capacity to an operator which 
utilizes digital transmissions, except that an ITFS licensee or 
conditional licensee may not exchange one of its assigned channels for 
MDS channel 2A. The licensees or conditional licensees seeking to 
exchange channels shall file in tandem with the Commission separate pro 
forma assignment of license applications, each attaching an exhibit 
which clearly specifies that the application is filed pursuant to a 
channel exchange agreement. The exchanged channel(s) shall be regulated 
according to the requirements applicable to the assignee; provided, 
however, that an ITFS licensee or conditional licensee which receives 
one or more E or F Group channels through a channel exchange with an 
MDS licensee or conditional licensee shall not be subject to the 
restrictions on ITFS licensees who were authorized to operate on the E 
or F Group channels prior to May 26, 1983.
* * * * *
    32. In Sec. 74.903, paragraphs (a)(1) through (a)(3), paragraph (b) 
introductory text, paragraphs (b) (1), (2), (4) and (5), paragraph (c) 
and paragraph (d) are revised, paragraphs (e) and (f) are removed, and 
new paragraph (a)(6) is added, to read as follows:


Sec. 74.903  Interference.

    (a) * * *
    (1) Cochannel interference is defined as the ratio of the desired 
signal to the undesired signal, at the output of a reference receiving 
antenna oriented to receive the maximum desired signal level. Harmful 
interference will be considered present when a free space calculation 
determines that this ratio is less than 45 dB (both stations utilizing 
6 MHz bandwidths).
    (2) Adjacent channel interference is defined as the ratio of the 
desired signal to undesired signal present in an adjacent channel, at 
the output of a reference receiving antenna oriented to receive the 
maximum desired signal level.
    (i) Harmful interference will be considered present when a free 
space calculation determines that this ratio is less than 0 dB (both 
stations utilizing 6 MHz bandwidths).
    (ii) In the alternative, harmful interference will be considered 
present for an ITFS station constructed before May 26, 1983, when a 
free space calculation determines that this ratio is less than 10 dB 
(both stations utilizing 6 MHz bandwidths), unless:
    (A) The individual receive site under consideration has been 
subsequently upgraded with up-to-date reception equipment, in which 
case the ratio shall be less than 0 dB. Absent information presented to 
the contrary, however, the Commission will assume that reception 
equipment installation occurred simultaneously with original station 
equipment; or
    (B) The license for an ITFS station is conditioned on the proffer 
to the affected ITFS station licensee of equipment capable of providing 
a ratio of 0 dB or more at no expense to the ITFS station licensee, and 
also conditioned, if necessary, on the proffer of installation of such 
equipment; and there has been no showing by the affected ITFS station 
licensee demonstrating good cause and that the proposed equipment will 
not provide a ratio of 0 dB or more, or that installation of such 
equipment, at no expense to the ITFS station licensee, is not possible 
or has not been proffered.
    (3) For purposes of this section and except as set forth in 
Sec. 74.939 regarding the protection of response station hubs, all 
interference calculations involving receive antenna performance shall 
use the reference antenna characteristics shown in Figure I, 
Sec. 74.937(a) or, in the alternative, utilize the actual pattern 
characteristics of the antenna in use at the receive site under study. 
If the actual receive antenna pattern is utilized, the applicant must 
submit complete details including manufacturer, model number(s), co-
polar and cross-polar gain patterns, and other pertinent data.
* * * * *
    (6) Notwithstanding the above, main, booster and response stations 
shall use the following formulas, as applicable, for determining 
compliance with: (1) Radiated field contour limits where bandwidths 
other than 6 MHz are employed at stations utilizing digital modulation 
with uniform power spectral density; and (2) Cochannel and adjacent 
channel D/U ratios where the bandwidths in use at the interfering and 
protected stations are unequal and both stations are utilizing digital 
modulation with uniform power spectral density or one station is 
utilizing such modulation and the other station is utilizing either 6 
MHz NTSC analog modulation or 125 kHz analog modulation (I channels 
only).
    (i) Contour limit: -73 dBW + 10 log (X/6), where X is the bandwidth 
in MHz of the digital channel.
    (ii) Cochannel D/U: 45 dB + 10 log (X1/X2), where X1 is the 
bandwidth in MHz of the protected channel and X2 is the bandwidth in 
MHz of the interfering channel.
    (iii) Adjacent channel D/U: 0 dB + 10 log (X1/X2), where X1 is the 
bandwidth in MHz of the protected channel and X2 is the bandwidth in 
MHz of the interfering channel.
    (b) All applicants for instructional television fixed stations are 
expected to take full advantage of such directive antenna techniques to 
prevent interference to the reception of any

[[Page 65115]]

existing or previously-proposed operational fixed, multipoint 
distribution, international control or instructional television fixed 
station at authorized receiving locations. Therefore, all applications 
for new or major changes must include an analysis of potential 
interference to all existing and previously-proposed stations in 
accordance with paragraph (a) of this section. An applicant for a new 
instructional television fixed station or for changes in an existing 
ITFS facility or conditional license must include the following 
technical information with the application:
    (1) An analysis of the potential for harmful interference with the 
receive sites registered as of September 17, 1998, and with the 
protected service area, of any authorized or previously-proposed 
cochannel station if:
    (i) The proposed transmitting antenna has an unobstructed 
electrical path to receive site(s) and/or the protected service area of 
any other station that utilizes, or would utilize, the same frequency; 
or
    (ii) The proposed transmitter is within 80.5 km (50 miles) of the 
coordinates of any such station.
    (2) An analysis of the potential for harmful adjacent channel 
interference with the receive sites registered as of September 17, 
1998, and with the protected service area, of any authorized or 
previously-proposed station if the proposed transmitter is within 80.5 
km (50 miles) of the coordinates of any station that utilizes, or would 
utilize, an adjacent channel frequency.
* * * * *
    (4) In lieu of the interference analyses required by paragraphs 
(b)(1) and (2) of this section, an applicant may submit (a) 
statement(s) from the affected cochannel or adjacent channel 
licensee(s) or conditional licensee(s) that any resulting interference 
is acceptable.
    (5) Specific rules relating to response station hubs, booster 
stations, and 125 kHz channels are set forth in Secs. 21.909 of this 
chapter, 21.913 of this chapter, 21.940 of this chapter, 74.939, 74.940 
and 74.985. To the extent those specific rules are inconsistent with 
any rules set forth above, those specific rules shall control.
    (c) Existing licensees, conditional licensees and prospective 
applicants, including those who lease or propose to lease excess 
capacity pursuant to Sec. 74.931(c) or (d), are expected to cooperate 
fully and in good faith in attempting to resolve problems of potential 
interference before bringing the matter to the attention of the 
Commission.
    (d) Each authorized or previously-proposed applicant, conditional 
licensee, or licensee must be protected from harmful electrical 
interference at each of its receive sites registered previously as of 
September 17, 1998, and within a protected service area as defined at 
Sec. 21.902(d)(1) of this chapter and in accordance with the reference 
receive antenna characteristics specified at Sec. 21.902(f) of this 
chapter. An ITFS entity which did not receive protected service area 
protection prior to September 17, 1998 shall be accorded such 
protection by a cochannel or adjacent channel applicant for a new 
station or station modification, including a booster station, response 
station or response station hub, where the applicant is required to 
prepare an analysis, study or demonstration of the potential for 
harmful interference.
    33. In Sec. 74.911, paragraph (a)(1) is revised, and new paragraph 
(d) is added, to read as follows:


Sec. 74.911  Processing of ITFS station applications.

    (a) * * *
    (1) In the first group are applications for new stations or major 
changes in the facilities of authorized stations. These applications 
are subject to the provisions of paragraph (c) of this section. A major 
change for an ITFS station will be any proposal to add new channels, 
change from one channel (or channel group) to another except as 
provided for in Sec. 74.902(f), change polarization, increase the EIRP 
in any direction by more than 1.5 dB, increase the transmitting antenna 
height by 25 feet or more, or relocate a facility's transmitter site by 
10 miles or more. Applications submitted pursuant to Secs. 74.939 and 
74.985 shall not be considered major change applications. However, the 
Commission may, within 15 days after the acceptance of an application, 
or 15 days after the acceptance of any other application for 
modification of facilities, advise the applicant that such application 
is considered to be one for a major change, and subject to the 
provisions of paragraph (c) of this section.
* * * * *
    (d) Notwithstanding any other provisions of this part, effective as 
of September 17, 1998, there shall be one one-week window, at such time 
as the Commission shall announce by public notice, for the filing of 
applications for high-power signal booster station, response station 
hub, and I channels point-to-multipoint transmissions licenses, during 
which all applications shall be deemed to have been filed as of the 
same day for purposes of Secs. 74.939 and 74.985. Following the 
publication of a public notice announcing the tendering for filing of 
applications submitted during that window, applicants shall have a 
period of sixty (60) days to amend their applications, provided such 
amendments do not result in any increase in interference to any 
previously-proposed or authorized station, or to facilities proposed 
during the window, absent consent of the applicant for or conditional 
licensee or licensee of the station that would receive such additional 
interference. At the conclusion of that sixty (60) day period, the 
Commission shall publish a public notice announcing the acceptance for 
filing of all applications submitted during the initial window, as 
amended during the sixty (60) day period. All petitions to deny such 
applications must be filed within sixty (60) days of such second public 
notice. On the sixty-first (61st) day after the publication of such 
second public notice, applications for new or modified response station 
hub and booster station licenses may be filed and will be processed in 
accordance with the provisions of Secs. 74.939 and 74.985. 
Notwithstanding paragraph (d) of this section, each application 
submitted during the initial window shall be granted on the sixty-first 
(61st) day after the Commission shall have given such public notice of 
its acceptance for filing, unless prior to such date either a party in 
interest timely files a formal petition to deny or for other relief 
pursuant to Sec. 74.912, or the Commission notifies the applicant that 
its application will not be granted. Where an application is granted 
pursuant to the provisions of this paragraph, the conditional licensee 
or licensee shall maintain a copy of the application at the transmitter 
site or response station hub until such time as the Commission issues a 
license.
    34. New Sec. 74.912 is added to read as follows:


Sec. 74.912  Petitions to deny.

    (a) Any party in interest may file with the Commission a petition 
to deny any application for new facilities or major changes in the 
facilities of authorized stations, provided such petitions are filed by 
the date established pursuant to the cut-off provisions of 
Sec. 74.911(c). In the case of all other applications, except those 
excluded under Section 309(c) of the Communications Act of 1934, as 
amended, and except as provided in Secs. 74.939 and 74.985, petitions 
to deny must be filed not later than 30 days after issuance of a public 
notice of the acceptance for filing of the applications. In the case of 
applications for renewal of license, petitions to deny may be filed

[[Page 65116]]

after the issuance of a public notice of acceptance for filing of the 
applications and up until the first day of the last full calendar month 
of the expiring license term. Any party in interest may file with the 
Commission a petition to deny any notification regarding ITFS booster 
stations within the 60 day period provided for in Sec. 74.985(e).
    (b) The applicant may file an opposition to any petition to deny, 
and the petitioner a reply to such opposition in which allegations of 
fact or denials thereof shall be supported by affidavit of a person or 
persons with personal knowledge thereof. The times for filing such 
oppositions and replies shall be those provided in Sec. 1.45 of this 
chapter.
    35. In Sec. 74.931, paragraphs (d) and (e) are redesignated as 
paragraphs (b) and (c), respectively, and paragraphs (f) through (k) 
are redesignated as paragraphs (e) through (j), respectively, paragraph 
(a) and newly redesignated paragraphs (b) and (c) are revised, and new 
paragraph (d) is added, to read as follows:


Sec. 74.931  Purpose and permissible service.

    (a) (1) Instructional television fixed stations are intended 
primarily through video, data, or voice transmissions to further the 
educational mission of accredited public and private schools, colleges 
and universities providing a formal educational and cultural 
development to enrolled students. Authorized instructional television 
fixed station channels must be used to further the educational mission 
of accredited schools offering formal educational courses to enrolled 
students, with limited exceptions as set forth in paragraphs (c)(3) and 
(d)(2) of this section and Secs. 74.990 through 74.992.
    (2) In furtherance of the educational mission of accredited 
schools, instructional television fixed station channels may be used 
for:
    (i) In-service training and instruction in special skills and 
safety programs, extension of professional training, informing persons 
and groups engaged in professional and technical activities of current 
developments in their particular fields, and other similar endeavors.
    (ii) Transmission of material directly related to the 
administrative activities of the licensee, such as the holding of 
conferences with personnel, distribution of reports and assignments, 
exchange of data and statistics, and other similar uses.
    (iii) Response channels transmitting information associated with 
formal educational courses offered to enrolled students, including uses 
described in paragraphs (a)(2) (i) and (ii) of this section, from ITFS 
response stations to response station hubs.
    (b) Stations, including high-power ITFS signal booster stations, 
may be licensed in this service as originating or relay stations to 
interconnect instructional television fixed stations in adjacent areas, 
to deliver instructional and cultural material to, and obtain such 
material from, commercial and noncommercial educational television 
broadcast stations for use on the instructional television fixed 
system, and to deliver instructional and cultural material to, and 
obtain such material from, nearby terminals or connection points of 
closed circuit educational television systems employing wired 
distribution systems or radio facilities authorized under other parts 
of this Chapter, or to deliver instructional and cultural material to 
any CATV system serving a receiving site or sites which would be 
eligible for direct reception of ITFS signals under the provisions of 
paragraph (a) of this section.
    (c) A licensee solely utilizing analog transmissions may use excess 
capacity on each channel to transmit material other than the ITFS 
subject matter specified in paragraphs (a) and (b) of this section, 
subject to the following conditions:
    (1) Before leasing excess capacity on any one channel, the licensee 
must provide at least 20 hours per week of ITFS educational usage on 
that channel, except as provided in paragraph (c)(2) of this section. 
An additional 20 hours per week per channel must be strictly reserved 
for ITFS use and not used for non-ITFS purposes, or reserved for 
recapture by the ITFS licensee for its ITFS educational usage, subject 
to one year's advance, written notification by the ITFS licensee to its 
lessee and accounting for all recapture already exercised, with no 
economic or operational detriment to the licensee. These hours of 
recapture are not restricted as to time of day or day of the week, but 
may be established by negotiations between the ITFS licensee and the 
lessee. This 20 hours per channel per week ITFS educational usage 
requirement and this recapture and/or reservation requirement of an 
additional 20 hours per channel per week shall apply spectrally over 
the licensee's whole protected service area.
    (2) For the first two years of operation, an ITFS entity may lease 
excess capacity if it provides ITFS educational usage for at least 12 
hours per channel per week, provided that the entity does not employ 
channel loading technology.
    (3) The licensee may shift its requisite ITFS educational usage 
onto fewer than its authorized number of channels, via channel mapping 
or channel loading technology, so that it can lease full-time channel 
capacity on its ITFS station, associated ITFS booster stations, and/or 
ITFS response stations and associated response station hubs, subject to 
the condition that it provide a total average of at least 20 hours per 
channel per week of ITFS educational usage on its authorized channels. 
The use of channel mapping or channel loading consistent with the Rules 
shall not be considered adversely to the ITFS licensee in seeking a 
license renewal. The licensee also retains the unabridgeable right to 
recapture, subject to six months' advance written notification by the 
ITFS licensee to its lessee, an average of an additional 20 hours per 
channel per week, accounting for all recapture already exercised. The 
licensee may agree to the transmission of this recapture time on 
channels not authorized to it, but which are included in the wireless 
system of which it is a part.
    (4) An ITFS applicant, conditional licensee, or licensee may 
specify an omnidirectional antenna for point-to-multipoint 
transmissions to facilitate the leasing of excess capacity.
    (5) Leasing activity may not cause unacceptable interference to 
cochannel or adjacent channel operations.
    (6) When an ITFS licensee makes capacity available on a common 
carrier basis, it will be subject to common carrier regulation.
    (i) A licensee operating as a common carrier is required to apply 
for the appropriate authorization and to comply with all policies and 
rules applicable to that service. Responsibility for making the initial 
determination of whether a particular activity is common carriage rests 
with the ITFS licensee. Initial determinations by the licensees are 
subject to Commission examination and may be reviewed at the 
Commission's discretion.
    (ii) An ITFS licensee also may apply for authorization by the 
Commission to alternate, without further authorization required, 
between rendering service on a common carrier and non-common carrier 
basis, provided that the licensee notify the Commission of any service 
status changes at least 30 days in advance of such changes.
    (iii) Licensees under paragraph (c)(6) of this section additionally 
shall comply with the provisions of Secs. 21.304, 21.900(b), 
21.903(b)(1) and (2), and 21.910 of this chapter.
    (d) A licensee utilizing digital transmissions on any of its 
licensed channels may use excess capacity on each channel to transmit 
material other

[[Page 65117]]

than the ITFS subject matter specified in paragraphs (a) and (b) of 
this section, subject to the following conditions:
    (1) The licensee must reserve a minimum of 5% of the capacity of 
its channels for instructional purposes only, and may not lease this 
reserved capacity. In addition, before leasing excess capacity, the 
licensee must provide at least 20 hours per licensed channel per week 
of ITFS educational usage. This 5% reservation and this 20 hours per 
licensed channel per week ITFS educational usage requirement shall 
apply spectrally over the licensee's whole protected service area.
    (2) The licensee may shift its requisite ITFS educational usage 
onto fewer than its authorized number of channels, via channel mapping 
or channel loading technology, and may shift its requisite ITFS 
educational usage onto channels not authorized to it, but which are 
included in the wireless system of which it is a part (``channel 
shifting''), so that it can lease full-time channel capacity on its 
ITFS station, associated ITFS booster stations, and/or ITFS response 
stations and associated response station hubs, subject to the condition 
that it provide a total average of at least 20 hours per licensed 
channel per week of ITFS educational usage. The use of channel mapping, 
channel loading, and/or channel shifting consistent with the Rules 
shall not be considered adversely to the ITFS licensee in seeking a 
license renewal.
    (3) An ITFS applicant, conditional licensee, or licensee may 
specify an omnidirectional antenna for point-to-multipoint 
transmissions to facilitate the leasing of excess capacity.
    (4) Leasing activity may not cause unacceptable interference to 
cochannel or adjacent channel operations.
    (5) A licensee leasing any of its licensed channels to be used as 
response channels shall be required to maintain at least 25% of the 
capacity of its channels for point-to-multipoint transmissions during 
the term of the lease and following termination of the leasing 
arrangement. This 25% preservation may be over the licensee's own 
authorized channels or over channels not authorized to it, but which 
are included in the wireless system of which it is a part.
    (6) When an ITFS licensee makes capacity available on a common 
carrier basis, it will be subject to common carrier regulation.
    (i) A licensee operating as a common carrier is required to apply 
for the appropriate authorization and to comply with all policies and 
rules applicable to that service. Responsibility for making the initial 
determination of whether a particular activity is common carriage rests 
with the ITFS licensee. Initial determinations by the licensees are 
subject to Commission examination and may be reviewed at the 
Commission's discretion.
    (ii) An ITFS licensee also may apply for authorization by the 
Commission to alternate, without further authorization required, 
between rendering service on a common carrier and non-common carrier 
basis, provided that the licensee notify the Commission of any service 
status changes at least 30 days in advance of such changes.
    (iii) Licensees under paragraph (d)(6) of this section additionally 
shall comply with the provisions of Secs. 21.304, 21.900(b), 
21.903(b)(1) and (2), and 21.910 of this chapter.
* * * * *
    36. In Section 74.935, paragraphs (a) and (b) are revised to read 
as follows:


Sec. 74.935  Power limitations.

    (a) The maximum EIRP of an ITFS main or booster station shall not 
exceed 33 dBW (or, when digital modulation with uniform power spectral 
density and subchannels or superchannels, or 125 kHz channels, are 
used, the appropriately adjusted value based upon the ratio of 6 MHz to 
the subchannel or superchannel, or 125 kHz, bandwidth), except as 
provided in paragraph (b) of this section.
    (b) If a main or booster station sectorizes or otherwise uses one 
or more transmitting antennas with a non-omnidirectional horizontal 
plane radiation pattern, the maximum EIRP over a 6 MHz channel in dBW 
in a given direction shall be determined by the following formula:
EIRP = 33 dBW + 10 log (360/beamwidth) [where 10 log (360/beamwidth) 
 6 dB]

    Beamwidth is the total horizontal plane beamwidth of the individual 
transmitting antenna for the station or any sector measured at the 
half-power points. The first term of the equation above, 33 dBW, must 
be adjusted appropriately based upon the ratio of 6 MHz to the 
subchannel or superchannel, or 125 kHz, bandwidth.
* * * * *
    37. Section 74.936 is revised in its entirety, to read as follows:


Sec. 74.936  Emissions and bandwidth.

    (a) An ITFS station may employ amplitude modulation (C3F) for the 
transmission of the visual signal and frequency modulation (F3E) or 
(G3E) for the transmission of the aural signal when transmitting a 
standard analog television signal. Quadrature amplitude modulation, 
digital vestigial modulation, quadrature phase shift key modulation and 
code division multiple access emissions may be employed, subject to 
compliance with the policies set forth in the Declaratory Ruling and 
Order, 11 FCC Rcd 18839 (1996). The licensee may subchannelize its 
authorized bandwidth, provided that digital modulation is employed and 
the aggregate power does not exceed the authorized power for the 
channel, and may utilize all or a portion of its authorized bandwidth 
for ITFS response stations authorized pursuant to Sec. 74.939. The 
licensee may also, jointly with affected adjacent channel licensees, 
transmit utilizing bandwidth in excess of its authorized frequencies, 
provided that digital modulation is employed, all power spectral 
density requirements set forth in this part are met and the out-of-band 
emissions restrictions set forth in 74.936 are met at the edges of the 
channels employed. The wider channels thus created may be redivided to 
create narrower channels.
    (b) Notwithstanding the above, any digital emission which meets the 
uniform power spectral density requirements of the Declaratory Ruling 
and Order may be used in the following circumstances:
    (1) At any ITFS main or booster station transmitter which is 
located more than 160.94 km (100 miles) from the nearest boundary of 
all cochannel and adjacent channel ITFS and MDS protected service 
areas, including Basic Trading Areas and Partitioned Service Areas; and
    (2) At all ITFS response station transmitters within a response 
service area if all points along the response service area boundary 
line are more than 160.94 km (100 miles) from the nearest boundary of 
all cochannel and adjacent channel ITFS and MDS protected service 
areas, including Basic Trading Areas and Partitioned Service Areas; and
    (3) At any ITFS transmitter where all parties entitled by this part 
to interference protection from that transmitter have mutually 
consented to the use at that transmitter of such emissions.
    (c) The maximum out-of-band power of an ITFS station transmitter or 
booster transmitting on a single 6 MHz channel with an EIRP in excess 
of -9 dBW employing analog modulation shall be attenuated at the 
channel edges by at least 38 dB relative to the peak visual carrier, 
then linearly sloping from that level to at least 60 dB of attenuation 
at 1 MHz below the lower band edge and 0.5 MHz above the upper band 
edge, and attenuated at least 60 dB at all other

[[Page 65118]]

frequencies. The maximum out-of-band power of an ITFS station 
transmitter or booster transmitting on a single 6 MHz channel or a 
portion thereof with an EIRP in excess of -9 dBW (or, when subchannels 
are used, the appropriately adjusted value based upon the ratio of the 
channel-to-subchannel bandwidths) employing digital modulation shall be 
attenuated at the 6 MHz channel edges at least 25 dB relative to the 
licensed average 6 MHz channel power level, then attenuated along a 
linear slope to at least 40 dB at 250 kHz beyond the nearest channel 
edge, then attenuated along a linear slope from that level to at least 
60 dB at 3 MHz above the upper and below the lower licensed channel 
edges, and attenuated at least 60 dB at all other frequencies. 
Notwithstanding the foregoing, in situations where an ITFS station or 
booster station transmits, or where adjacent channel licensees jointly 
transmit, a single signal over more than one contiguous 6 MHz channel 
utilizing digital modulation with an EIRP in excess of -9 dBW (or, when 
subchannels or superchannels are used, the appropriately adjusted value 
based upon the ratio of 6 MHz to the subchannel or superchannel 
bandwidth), the maximum out-of-band power shall be attenuated at the 
channel edges of those combined channels at least 25 dB relative to the 
power level of each channel, then attenuated along a linear slope from 
that level to at least 40 dB at 250 kHz above or below the channel 
edges of those combined channels, then attenuated along a linear slope 
from that level to at least 60 dB at 3 MHz above the upper and below 
the lower edges of those combined channels, and attenuated at least 60 
dB at all other frequencies. However, should harmful interference occur 
as a result of emissions outside the assigned channel, additional 
attenuation may be required. A transmitter licensed prior to November 
1, 1991, that remains at the station site initially licensed, and does 
not comply with this paragraph, may continue to be used for its life if 
it does not cause harmful interference to the operation of any other 
licensee. Any non-conforming transmitter replaced after November 1, 
1991, must be replaced by a transmitter meeting the requirements of 
this paragraph.
    (d) A booster transmitting on multiple contiguous or non-contiguous 
channels carrying separate signals (a ``broadband'' booster) with an 
EIRP in excess of -9 dBW per 6 MHz channel and employing analog, 
digital or a combination of these modulations shall have the following 
characteristics:
    (1) For broadband boosters operating in the frequency range of 
2.150-2.160/2 GHz, the maximum out-of-band power shall be attenuated at 
the upper and lower channel edges forming the band edges by at least 25 
dB relative to the licensed analog peak visual carrier or digital 
average power level (or, when subchannels are used, the appropriately 
adjusted value based on upon the ratio of the channel-to-subchannel 
bandwidths), then linearly sloping from that level to at least 40 dB of 
attenuation at 0.25 MHz above and below the band edges, then linearly 
sloping from that level to at least 60 dB of attenuation at 3.0 MHz 
above and below the band edges, and attenuated at least 60 dB at all 
other frequencies.
    (2) For broadband boosters operating in the frequency range of 
2.500-2.690 GHz, the maximum out-of-band power shall be attenuated at 
the upper and lower channel edges forming the band edges by at least 25 
dB relative to the licensed analog peak visual carrier or digital 
average power level (or, when subchannels are used, the appropriately 
adjusted value based on upon the ratio of the channel-to-subchannel 
bandwidths), then linearly sloping from that level to at least 40 dB of 
attenuation at 0.25 MHz above and below the band edges, then linearly 
sloping from that level to at least 50 dB of attenuation at 3.0 MHz 
above and below the band edges, then linearly sloping from that level 
to at least 60 dB of attenuation at 20 MHz above and below the band 
edges, and attenuated at least 60 dB at all other frequencies.
    (3) Within unoccupied channels in the frequency range of 2.500-
2.690 GHz, the maximum out-of-band power shall be attenuated at the 
upper and lower channel edges of an unoccupied channel by at least 25 
dB relative to the licensed analog peak visual carrier power level or 
digital average power level of the occupied channels (or, when 
subchannels or 125 kHz channels are used, the appropriately adjusted 
value based upon the ratio of the channel-to-subchannel bandwidths), 
then linearly sloping from that level to at least 40 dB of attenuation 
at 0.25 MHz above and below the occupied channel edges, then linearly 
sloping from that level to at least 50 dB of attenuation at 3.0 MHz 
above and below the occupied channel edges, and attenuated at least 50 
dB at all other unoccupied frequencies.
    (e) Boosters operating with an EIRP less than -9 dBW per 6 MHz 
channel shall have no particular out-of-band power attenuation 
requirement, except that if they cause harmful interference, their 
operation shall be terminated within 2 hours of notification by the 
Commission until the interference can be cured.
    (f) The maximum out-of-band power of an ITFS response station using 
all or part of a 6 MHz channel and employing digital modulation shall 
be attenuated at the 6 MHz channel edges at least 25 dB relative to the 
licensed average 6 MHz channel power level, then attenuated along a 
linear slope to at least 40 dB at 250 kHz beyond the nearest channel 
edge, then attenuated along a linear slope from that level to at least 
60 dB at 3 MHz above the upper and below the lower licensed channel 
edges, and attenuated at least 60 dB at all other frequencies. Where 
ITFS response stations with digital modulation utilize all or part of 
more than one contiguous 6 MHz channel to form a larger channel (e.g., 
a channel of width 12 MHz), the above-specified attenuations shall be 
applied only at the upper and lower edges of the overall combined 
channel. Notwithstanding these provisions, should harmful interference 
occur as a result of emissions outside the assigned channel(s), 
additional attenuation may be required by the Commission.
    (g) The requirements of Sec. 73.687(c)(2) will be considered to be 
satisfied insofar as measurements of operating power are concerned if 
the transmitter is equipped with instruments for determining the 
combined visual and aural operating power. However, licensees are 
expected to maintain the operating powers within the limits specified 
in Sec. 74.935. Measurements of the separate visual and aural operating 
powers must be made at sufficiently frequent intervals to insure 
compliance with the rules, and in no event less than once a month. 
However, the provisions of Sec. 73.687(c)(2) and of this paragraph 
shall not be applicable to ITFS response stations or to low power ITFS 
booster stations authorized pursuant to Sec. 74.985(e).
    (h) Compliance with the out-of-band emissions limitations shall be 
established in accordance with Sec. 21.908(e) of this chapter.
    38. In Sec. 74.937, paragraph (a) is revised by amending the text 
preceding figure 1, and paragraph (b) is revised, to read as follows:


Sec. 74.937  Antennas.

    (a) In order to minimize the hazard of harmful cochannel and 
adjacent channel interference from other stations, directive receiving 
antennas should be used at all receiving locations other than response 
station hubs. The choice of receiving antennas is left to the 
discretion of the licensee. However, for the purpose of interference 
calculations, except as set forth in Sec. 74.939, the general 
characteristics of the reference receiving antenna shown in Figure I of 
this section (i.e., a 0.6 meter (2 foot)

[[Page 65119]]

parabolic reflector antenna) are assumed to be used in accordance with 
the provisions of Sec. 74.903(a)(3) unless pertinent data is submitted 
of the actual antenna in use at the receive site. Licensees may install 
receiving antennas with general characteristics superior to those of 
the reference receive antenna. Nevertheless, should interference occur 
and it can be demonstrated by an applicant that the existing antenna at 
the receive site is inappropriate, a more suitable yet practical 
receiving antenna should be installed. In such cases, the modification 
of the receive site will be in the discretion, and will be the 
responsibility, of the licensee serving the site.
* * * * *
    (b) Except as set forth in Sec. 74.931 (c)(4) and (d)(3), directive 
transmitting antennas shall be used whenever feasible so as to minimize 
interference to other licensees. The radiation pattern shall be 
designed to minimize radiation in directions where no reception is 
intended. When an ITFS station is used for point-to-point service, an 
appropriate directional antenna must be used.
* * * * *
    39. Section 74.938 is revised to read as follows:


Sec. 74.938  Transmission standards.

    The width of an ITFS channel is 6 MHz. However, the licensee may 
subchannelize its authorized bandwidth, provided that digital 
modulation is employed and the aggregate power does not exceed the 
authorized power for the channel, and may utilize all or a portion of 
its authorized bandwidth for ITFS response stations authorized pursuant 
to Sec. 74.939. The licensee may also, jointly with other licensees, 
transmit utilizing bandwidth in excess of its authorized bandwidth, 
provided that digital modulation is employed, all power spectral 
density requirements set forth in this part are met and the out-of-band 
emissions restrictions set forth in Sec. 74.936 are met at the edges of 
the channels employed.
    40. Section 74.939 is revised to read as follows:


Sec. 74.939  ITFS response stations.

    (a) An ITFS response station is authorized to provide communication 
by voice, video and/or data signals with its associated ITFS response 
station hub or associated ITFS station. An ITFS response station may be 
operated only by the licensee of the ITFS station, by any person or 
entity authorized by the ITFS licensee to receive point-to-multipoint 
transmissions over its channels, by any lessee of excess capacity, or 
by a subscriber of any lessee of excess capacity. The authorized 
channel may be divided to provide distinct subchannels for each of more 
than one response station, provided that digital modulation is employed 
and the aggregate power does not exceed the authorized power for the 
channel. An ITFS response station may also, jointly with other 
licensees, transmit utilizing bandwidth in excess of that authorized to 
the station, provided that digital modulation is employed, all power 
spectral density requirements set forth in this part are met, and the 
out-of-band emission restrictions set forth in Sec. 74.936 or paragraph 
(k) of this section are complied with.
    (b) ITFS response stations that utilize the 2150-2162 MHz band 
pursuant to Sec. 74.902(f), the 2500-2686 MHz band, and/or the 125 kHz 
channels identified in paragraph (j) of this section may be installed 
and operated without an individual license, to communicate with a 
response station hub authorized under a response station hub license, 
provided that the conditions set forth in paragraph (g) of this section 
are complied with and that ITFS response stations operating in the 
2150-2162 MHz and/or 2500-2686 MHz band(s) employ only digital 
modulation with uniform power spectral density in accordance with the 
Commission's Declaratory Ruling and Order, 11 FCC Rcd 18839 (1996).
    (c) An applicant for a response station hub license shall:
    (1) File FCC Form 331 with the Commission in Washington, DC, and 
certify on that form that it has complied with the requirements of 
paragraphs (c)(2) and (d) of this section. Failure to certify 
compliance and to comply completely with the requirements of paragraphs 
(c)(2) and (d) of this section shall result in dismissal of the 
application or revocation of the response station hub license, and may 
result in imposition of a monetary forfeiture; and
    (2) Submit to International Transcription Services, Inc. (``ITS''), 
1231 20th Street, NW, Washington, DC 20036, both in hard copy, and on a 
3.5'' computer diskette in ASCII, the following:
    (i) Duplicates of the Form 331 filed with the Commission; and
    (ii) The data required by Appendix D to the Report and Order in MM 
Docket No. 97-217, FCC 98-231, ``Methods for Predicting Interference 
from Response Station Transmitters and to Response Station Hubs and for 
Supplying Data on Response Station Systems''; and
    (iii) The information, showings and certifications required by 
paragraph (d) of this section; and
    (3) Submit to the Commission, only upon Commission staff request, 
duplicates of the submissions required by paragraph (c)(2) of this 
section.
    (d) An applicant for a response station hub license shall, pursuant 
to paragraph (c)(2)(iii) of this section, submit to ITS the following:
    (1) The geographic coordinates, street address, and the height of 
the center line of the reception antenna(s) above mean sea level for 
the response station hub; and (2) A specification of:
    (i) The response service area in which the applicant or its lessee 
proposes to install ITFS response stations to communicate with the 
response station hub, any regions into which the response service area 
will be subdivided for purposes of interference analysis, and any 
regional classes of response station characteristics which will be used 
to define the operating parameters of groups of response stations 
within each region for purposes of interference analysis, including:
    (A) the maximum height above ground level of the transmission 
antenna that will be employed by any response station in the regional 
class and that will be used in interference analyses; and
    (B) the maximum equivalent isotropic radiated power (EIRP) that 
will be employed by any response station in the regional class and that 
will be used in interference analyses; and
    (C) any sectorization that will be employed, including the 
polarization to be employed by response stations in each sector and the 
geographic orientation of the sector boundaries, and that will be used 
in interference analyses; and
    (D) the combined worst-case outer envelope plot of the patterns of 
all models of response station transmission antennas that will be 
employed by any response station in the regional class to be used in 
interference analyses; and
    (E) the maximum number of response stations that will be operated 
simultaneously in each region using the characteristics of each 
regional class applicable to each region.
    (ii) The channel plan (including any guardbands at the edges of the 
channel) to be used by ITFS response stations in communicating with the 
response station hub, including a statement as to whether the applicant 
will employ the same frequencies on which response stations will 
transmit to also transmit on a point-to-multipoint basis from an MDS 
station or MDS booster station; and
    (3) A demonstration that:

[[Page 65120]]

    (i) The proposed response station hub is within the protected 
service area, as defined in Sec. 21.902(d)(1) of this chapter, of the 
ITFS station(s) whose channels will be used for communications to the 
response station hub or, in the case of an application for response 
stations to utilize one or more of the 125 kHz response channels, the 
response station hub is within the protected service area of the 
station authorized to utilize the associated channel(s); and
    (ii) The entire proposed response service area is within the 
protected service area of the ITFS station(s) whose channels will be 
used for communications to the response station hub or, in the 
alternative, the applicant may demonstrate that the licensee of any 
cochannel protected service area which is overlapped by the proposed 
response service area has consented to such overlap. In the case of an 
application for response stations to utilize one or more of the 125 kHz 
response channels, such demonstration shall establish that the response 
service area is entirely within the protected service area of the 
station authorized to utilize the associated channel(s), or, in the 
alternative, that the licensee entitled to any cochannel protected 
service area which is overlapped by the proposed response service area 
has consented to such overlap; and
    (iii) The combined signals of all simultaneously operating ITFS 
response stations within all response service areas and oriented to 
transmit toward their respective response station hubs and all 
cochannel ITFS stations and booster stations licensed to or applied for 
by the applicant will not generate a power flux density in excess of 
-73 dBW/m\2\ (or the pro rata power spectral density equivalent based 
on the bandwidth actually employed in those cases where less than a 6 
MHz channel is to be employed) outside the boundaries of the 
applicant's protected service area, as measured at locations for which 
there is an unobstructed signal path, except to the extent that consent 
of affected licensees has been obtained or consents have been granted 
pursuant to paragraph (d)(3)(ii) of this section to an extension of the 
response service area beyond the boundaries of the protected service 
area; and
    (iv) The combined signals of all simultaneously operating ITFS 
response stations within all response service areas and oriented to 
transmit toward their respective response station hubs, and all 
cochannel ITFS stations and booster stations licensed to or applied for 
by the applicant, will result in a desired to undesired signal ratio of 
at least 45 dB (or the appropriately adjusted value based upon the 
ratio of the channel-to-subchannel bandwidths):
    (A) within the protected service area of any authorized or 
previously-proposed cochannel MDS or ITFS station with center 
coordinates located within 160.94 km (100 miles) of the proposed 
response station hub; and
    (B) within the booster service area of any cochannel booster 
station entitled to such protection pursuant to Sec. 21.913(f) of this 
chapter or 74.985(f) and located within 160.94 km (100 miles) of the 
proposed response station hub; and
    (C) at any registered receive site of any authorized or previously-
proposed cochannel ITFS station or booster station located within 
160.94 km (100 miles) of the proposed response station hub, or, in the 
alternative, that the licensee or applicant for such cochannel station 
or hub consents to the application; and
    (v) The combined signals of all simultaneously operating ITFS 
response stations within all response service areas and oriented to 
transmit toward their respective response station hubs, and all 
cochannel ITFS stations and booster stations licensed to or applied for 
by the applicant, will result in a desired to undesired signal ratio of 
at least 0 dB (or the appropriately adjusted value based upon the ratio 
of the channel-to-subchannel bandwidths):
    (A) within the protected service area of any authorized or 
previously-proposed adjacent channel MDS or ITFS station with center 
coordinates located within 160.94 km (100 miles) of the proposed 
response station hub; and
    (B) within the booster service area of any adjacent channel booster 
station entitled to such protection pursuant to Secs. 21.913(f) of this 
chapter or 74.985(f) and located within 160.94 km (100 miles) of the 
proposed response station hub; and
    (C) at any registered receive site of any authorized or previously-
proposed adjacent channel ITFS station or booster station located 
within 160.94 km (100 miles) of the proposed response station hub, or, 
in the alternative, that the licensee of or applicant for such adjacent 
channel station or hub consents to such application; and
    (vi) The combined signals of all simultaneously operating ITFS 
response stations within all response service areas and oriented to 
transmit toward their respective response station hub and all cochannel 
ITFS stations and booster stations licensed to or applied for by the 
applicant will comply with the requirements of Secs. 21.909(i) of this 
chapter and paragraph (i) of this section.
    (4) A certification that the application has been served upon
    (i) the holder of any cochannel or adjacent channel authorization 
with a protected service area which is overlapped by the proposed 
response service area;
    (ii) the holder of any cochannel or adjacent channel authorization 
with a protected service area that adjoins the applicant's protected 
service area;
    (iii) the holder of a cochannel or adjacent channel authorization 
for any BTA or PSA inside whose boundaries are locations for which 
there is an unobstructed signal path for combined signals from within 
the response station hub applicant's protected service area; and
    (iv) every licensee of, or applicant for, any cochannel or adjacent 
channel, authorized or previously-proposed, incumbent MDS station with 
a 56.33 km (35 mile) protected service area with center coordinates 
located within 160.94 km (100 miles) of the proposed response station 
hub; and
    (v) every licensee of, or applicant for, any cochannel or adjacent 
channel, authorized or previously-proposed ITFS station (including any 
booster station or response station hub) located within 160.94 km (100 
miles) of the proposed response station hub.
    (e) Applications for response station hub licenses shall be deemed 
minor change applications and, except as provided in Sec. 74.911(e), 
may be filed at any time. Notwithstanding any other provision of part 
74, applications for response station hub licenses meeting the 
requirements of paragraph (c) of this section shall cut-off 
applications that are filed on a subsequent day for facilities that 
would cause harmful electromagnetic interference to the proposed 
response station hubs. A response station hub shall not be entitled to 
protection from interference caused by facilities proposed on or prior 
to the day the application for the response station hub license is 
filed. Response stations shall not be required to protect from 
interference facilities proposed on or after the day the application 
for the response station hub license is filed.
    (f) Notwithstanding the provisions of Sec. 74.912 and except as 
provided by Sec. 74.911(e), any petition to deny an application for a 
response station hub license shall be filed no later than the sixtieth 
(60th) day after the date of public notice announcing the filing of 
such application or major amendment thereto. Notwithstanding 
Sec. 74.911(d) and except as provided in Sec. 74.911(e), an application 
for a response station hub license that meets the requirements of this 
section shall be granted on the sixty-first (61st) day after the

[[Page 65121]]

Commission shall have given public notice of the acceptance for filing 
of it, or of a major amendment to it if such major amendment has been 
filed, unless prior to such date either a party in interest timely 
files a formal petition to deny or for other relief pursuant to 
Sec. 74.912, or the Commission notifies the applicant that its 
application will not be granted. Where an application is granted 
pursuant to the provisions of this paragraph, the conditional licensee 
or licensee shall maintain a copy of the application at the response 
station hub until such time as the Commission issues a response station 
hub license.
    (g) An ITFS response station hub license establishing a response 
service area shall be conditioned upon compliance with the following:
    (1) No ITFS response station shall be located beyond the response 
service area of the response station hub with which it communicates; 
and
    (2) No ITFS response station shall operate with a transmitter 
output power in excess of 2 watts; and
    (3) No ITFS response station shall operate with an EIRP in excess 
of that specified in the application for the response station hub 
pursuant to paragraph (d)(2)(i)(B) of this section for the particular 
regional class of characteristics with which the response station is 
associated, and such response station shall not operate at an excess of 
33 dBW EIRP (or, when subchannels or superchannels, or 125 kHz 
channels, are used, the appropriately adjusted value based upon the 
ratio of 6 MHz to the subchannel or superchannel, or 125 kHz, 
bandwidth); and
    (4) Each ITFS response station shall employ a transmission antenna 
oriented toward the response station hub with which the ITFS response 
station communicates, and such antenna shall be no less directional 
than the worst case outer envelope pattern specified in the application 
for the response station hub pursuant to paragraph (d)(2)(i)(D) of this 
section for the regional class of characteristics with which the 
response station is associated; and
    (5) The combined out-of-band emissions of all response stations 
using all or part of one or multiple contiguous 6 MHz channels and 
employing digital modulation shall comply with Sec. 74.936(e). The 
combined out-of-band emissions of all response stations using all or 
part of one or multiple contiguous 125 kHz channels shall comply with 
paragraph (k) of this section. However, should harmful interference 
occur as a result of emissions outside the assigned channel, additional 
attenuation may be required; and
    (6) The response stations transmitting simultaneously at any time 
within any given region of the response service area utilized for 
purposes of analyzing the potential for interference by response 
stations shall conform to the numerical limits for each class of 
response station proposed in the application for the response station 
hub license. Notwithstanding the foregoing, the licensee of a response 
station hub license may alter the number of response stations of any 
class operating simultaneously in a given region, without prior 
Commission authorization, provided that the licensee:
    (i) First notifies the Commission of the altered number of response 
stations of such class(es) to be operated simultaneously in such 
region, and certifies in that notification that it has complied with 
the requirements of paragraphs (g)(6)(ii) and (iii) of this section; 
and
    (ii) Provides ITS with a copy of such notification and with an 
analysis establishing that such alteration will not result in any 
increase in interference to the protected service area or protected 
receive sites of any existing or previously-proposed, cochannel or 
adjacent channel MDS or ITFS station or booster station, to the 
protected service area of any MDS Basic Trading Area or Partitioned 
Service Area licensee entitled to protection pursuant to paragraph 
(d)(3) of this section, or to any existing or previously-proposed, 
cochannel or adjacent channel response station hub, or response station 
under Sec. 21.940 of this chapter or Sec. 74.940; or that the applicant 
for or licensee of such facility has consented to such interference; 
and
    (iii) Serves a copy of such notification and analysis upon each 
party entitled to be served pursuant to paragraph (d)(4) of this 
section; and
    (iv) Submits to the Commission, only upon Commission staff request, 
duplicates of the submissions required by paragraph (g)(6)(ii) of this 
section; and
    (7) Where an application is granted under this section, if a 
facility operated pursuant to that grant causes harmful, unauthorized 
interference to any cochannel or adjacent channel facility, it must 
promptly remedy the interference or immediately cease operations of the 
interfering facility, regardless of whether any petitions to deny or 
for other relief were filed against the application during the 
application process. The burden of proving that a facility operated 
under this section is not causing harmful, unauthorized interference 
lies on the licensee of the alleged interfering facility, following the 
filing of a documented complaint of interference by an affected party; 
and
    (8) In the event any MDS or ITFS receive site suffers interference 
due to block downconverter overload, the licensee of each response 
station hub with a response service area within five miles of such 
receive site shall cooperate in good faith to expeditiously identify 
the source of the interference. Each licensee of a response station hub 
with an associated response station contributing to such interference 
shall bear the joint and several obligation to promptly remedy all 
interference resulting from block downconverter overload at any ITFS 
receive site registered prior to the submission of the application for 
the response station hub license or at any receive site within an MDS 
or ITFS protected service area applied for prior to the submission of 
the application for the response station hub license, regardless of 
whether the receive site suffering the interference was constructed 
prior to or after the construction of the response station(s) causing 
the downconverter overload; provided, however, that the licensee of the 
registered ITFS receive site or the MDS or ITFS protected service area 
must cooperate fully and in good faith with efforts by the response 
station hub licensee to prevent interference before constructing 
response stations and/or to remedy interference that may occur. In the 
event that more than one response station hub licensee contributes to 
block downconverter interference at a MDS or ITFS receive site, the 
licensees of the contributing response station hubs shall cooperate in 
good faith to remedy promptly the interference.
    (h) Applicants must comply with part 17 of this chapter concerning 
notification to the Federal Aviation Administration of proposed antenna 
construction or alteration. The provisions of Secs. 74.967 and 
74.981(a)(5), concerning antenna painting and lighting requirements, 
apply to ITFS response stations and response station hubs, as well as 
to main and booster stations.
    (i) Response station hubs shall be protected from cochannel and 
adjacent channel interference in accordance with the following 
criteria:
    (1) An applicant for any new or modified MDS or ITFS station 
(including any high-power booster station or response station hub) 
shall be required to demonstrate interference protection to a response 
station hub within 160.94 km (100 miles) of the proposed facilities. In 
lieu of the interference protection requirements set

[[Page 65122]]

forth in Secs. 21.902(i) of this chapter, 21.938(b)(3) of this chapter 
and 74.903, such demonstration shall establish that the proposed 
facility will not increase the effective power flux density of the 
undesired signals generated by the proposed facility and any associated 
main stations, booster stations or response stations at the response 
station hub antenna for any sector. In lieu of the foregoing, an 
applicant for a new MDS or ITFS main station license or for a new or 
modified response station hub or booster license may demonstrate that 
the facility will not increase the noise floor at a reception antenna 
of the response station hub by more than 1 dB for cochannel signals and 
45 dB for adjacent channel signals, provided that:
    (i) The entity submitting the application may only invoke this 
alternative once per response station hub reception sector; or
    (ii) The licensee of the affected response station hub may consent 
to receive a certain amount of interference at its hub.
    (2) Commencing upon the filing of an application for an ITFS 
response station hub license and until such time as the application is 
dismissed or denied or, if the application is granted, a letter 
informing the Commission of completion of construction is submitted, 
the ITFS station whose channels are being utilized shall be entitled 
both to interference protection pursuant to Secs. 21.902(i) of this 
chapter, 21.938(b)(3) of this chapter and 74.903, and to protection of 
the response station hub pursuant to the preceding paragraph. Unless 
the application for the response station hub license specifies that the 
same frequencies also will be employed for digital and/or analog point-
to-multipoint transmissions by ITFS stations and/or ITFS booster 
stations, upon the submission of a letter informing the Commission of 
completion of construction of an ITFS response station hub where the 
channels of an ITFS station are being utilized as response station 
transmit frequencies, the ITFS station whose channels are being 
utilized for response station transmissions shall no longer be entitled 
to interference protection pursuant to Secs. 21.902(i) of this chapter, 
21.938(b)(3) of this chapter and 74.903 within the response service 
area with regard to any portion of any 6 MHz channel employed solely 
for response station communications. Upon the submission of a letter 
informing the Commission of completion of construction of an ITFS 
response station hub where the channels of an ITFS station are being 
utilized for response station transmissions and the application for the 
response station hub license specifies that the same frequencies will 
be employed for point-to-multipoint transmissions, the ITFS station 
whose channels are being utilized shall be entitled both to 
interference protection pursuant to Secs. 21.902(i) of this chapter, 
21.938(b)(3) of this chapter and 74.903, and to protection of the 
response station hub pursuant to the preceding provisions of this 
paragraph.
    (j) ITFS response stations may operate on either all or part of a 6 
MHz channel assigned a licensee, on any 125 kHz channel assigned a 
licensee, or on adjacent frequencies authorized to multiple licensees 
where such stations are operated jointly. The 125 kHz channels listed 
in the following table shall be assigned to the licensees of MDS and 
ITFS stations for use at response stations, or for licensing for point-
to-multipoint transmissions pursuant to paragraph (l) of this section, 
in accordance with the table. The specified 125 kHz frequency channel 
may be subdivided to provide a distinct operating frequency for each of 
more than one station, or may be combined with adjacent channels, 
provided that digital modulation is employed in accordance with 
paragraph (a) of this section. The specified 125 kHz frequency channels 
also may be exchanged with the licensee of another MDS or ITFS station 
for use of another 125 kHz channel assigned to the other licensee.

 
------------------------------------------------------------------------
                                                    Main       125 kHz
                Frequency (MHz)                   channel      channel
                                                designation  designation
------------------------------------------------------------------------
2686.0625                                               A1           I1
2686.1875                                               B1           I2
2686.3125                                               C1           I3
2686.4375                                               D1           I4
2686.5625                                               E1           I5
2686.6875                                               F1           I6
2686.8125                                               G1           I7
2686.9375                                               H1           I8
2687.0625                                               A2           I9
2687.1875                                               B2          I10
2687.3125                                               C2          I11
2687.4375                                               D2          I12
2687.5625                                               E2          I13
2687.6875                                               F2          I14
2687.8125                                               G2          I15
2687.9375                                               H2          I16
2688.0625                                               A3          I17
2688.1875                                               B3          I18
2688.3125                                               C3          I19
2688.4375                                               D3          I20
2688.5625                                               E3          I21
2688.6875                                               F3          I22
2688.8125                                               G3          I23
2688.9375                                               H3          I24
2689.0625                                               A4          I25
2689.1875                                               B4          I26
2689.3125                                               C4          I27
2689.4375                                               D4          I28
2689.5625                                               E4          I29
2689.6875                                               F4          I30
2689.8125                                               G4          I31
------------------------------------------------------------------------

    (k) 125 kHz wide response channels shall be subject to the 
following requirements: The 125 kHz wide channel shall be centered at 
the assigned frequency. If amplitude modulation is used, the carrier 
shall not be modulated in excess of 100%. If frequency modulation is 
used, the deviation shall not exceed # 25 kHz. Any emissions 
outside the channel shall be attenuated at the channel edges at least 
35 dB below peak output power when analog modulation is employed or 35 
dB below licensed average output power when digital modulation is 
employed (or, when subchannels are used, the appropriately adjusted 
value based upon the ratio of the channel-to-subchannel bandwidths). 
Any emissions more than 125 kHz from either channel edge, including 
harmonics, shall be attenuated at least 60 dB below peak output power 
when analog modulation is employed, or at least 60 dB below licensed 
average output power when digital modulation is employed (or, when 
subchannels are used, the appropriately adjusted value based upon the 
ratio of the channel-to-subchannel bandwidths). Notwithstanding the 
foregoing, in situations where adjacent channel licensees jointly 
transmit over more than one channel utilizing digital

[[Page 65123]]

modulation, the maximum out-of-band power shall be attenuated at the 
edges of those combined channels at least 35 dB relative to the 
licensed average power level of each channel. Emissions more than 125 
kHz from either edge of the combined channels, including harmonics, 
shall be attenuated at least 60 dB below peak analog power or licensed 
average digital power of each channel, as appropriate. Different types 
of emissions may be authorized for use on 125 kHz wide channels if the 
applicant describes fully the modulation and bandwidth desired, and 
demonstrates that the modulation selected will cause no more 
interference than is permitted under this paragraph. Greater 
attenuation may be required if interference is caused by out-of-channel 
emissions.
    (l) Any MDS or ITFS conditional licensee or licensee who wishes to 
use one or more of its associated I channels for point-to-multipoint 
transmissions in a system with one or more authorized, or previously- 
or simultaneously-proposed, response station hub(s) shall:
    (1) File FCC Form 331 with the Commission, filing with Mellon Bank 
for I channels associated with an MDS station, and filing with the 
Commission in Washington, DC for I channels associated with an ITFS 
station. The application shall specify which of the associated I 
channels is/are intended for point-to-multipoint transmissions. The 
applicant also shall certify on the appropriate form that it has 
complied with the requirements of paragraph (l)(2) of this section. 
Failure to certify compliance and to comply completely with the 
requirements of paragraph (l)(2) of this section shall result in 
dismissal of the application or revocation of the authorization for 
point-to-multipoint transmissions on the relevant I channels, and may 
result in imposition of a monetary forfeiture. Modification 
applications to convert I channels associated with ITFS stations to 
point-to-multipoint transmissions shall be considered minor changes for 
purposes of Sec. 74.911. These applications shall be subject to the 
procedures set forth in Sec. 21.27(d) of this chapter or 
Sec. 74.911(e), as appropriate; and
    (2) Submit to International Transcription Services, Inc., 1231 20th 
Street, N.W., Washington, DC 20036, both in hard copy, and on a 3.5'' 
computer diskette in ASCII, and likewise submit to the Commission, only 
upon Commission staff request:
    (i) Duplicates of the Form 331 filed with Mellon Bank or with the 
Commission, as appropriate; and
    (ii) The interference analyses required to be performed under 
Sec. 21.902 of this chapter, and Sec. 21.938 of this chapter where 
appropriate, including the provisions of Secs. 21.909 of this chapter, 
21.913 of this chapter, 74.939 and 74.985 regarding the protection of 
response station hubs and booster service areas from harmful 
electromagnetic interference, and including protection of stations 
authorized pursuant to Secs. 21.940 of this chapter and 74.940 from 
harmful electromagnetic interference, using the appropriately adjusted 
interference protection values based upon the ratio of the bandwidths 
in use; and
    (3) Except as provided in Sec. 21.27(d) of this chapter or 
Sec. 74.911(e), as appropriate, be permitted to file applications to 
convert associated I channels to point-to-multipoint transmissions at 
any time. I channels used for point-to-multipoint transmissions shall 
be afforded interference protection in the same manner as other point-
to-multipoint MDS and ITFS facilities, with appropriate adjustment of 
the interference protection values for bandwidth. Notwithstanding any 
other provision of parts 21 and 74, applications to convert associated 
I channels to point-to-multipoint transmissions, meeting the 
requirements of paragraphs (l) (1) and (2) of this section, shall cut-
off applications that are filed on a subsequent day for facilities that 
would cause harmful electromagnetic interference to the proposed point-
to-multipoint operations; and
    (4) Notwithstanding the provisions of Secs. 21.30(a)(4) of this 
chapter and 74.912, and except as provided in Sec. 21.27(d) of this 
chapter or Sec. 74.911(e), as appropriate, be subject to a petition to 
deny an application to convert associated I channels to point-to-
multipoint transmissions that is filed no later than the sixtieth 
(60th) day after the date of public notice announcing the filing of 
such application or major amendment thereto. Notwithstanding 
Secs. 21.31 of this chapter and 74.911(d), and except as provided in 
Sec. 21.27(d) of this chapter or Sec. 74.911(e), as appropriate, an 
application to convert associated I channels to point-to-multipoint 
transmissions that meets the requirements of this paragraph shall be 
granted on the sixty-first (61st) day after the Commission shall have 
given public notice of the acceptance for filing of it, or of a major 
amendment to it if such major amendment has been filed, unless prior to 
such date either a party in interest timely files a formal petition to 
deny or for other relief pursuant to Sec. 21.30(a) of this chapter or 
Sec. 74.912, or the Commission notifies the applicant that its 
application will not be granted. Where an application is granted 
pursuant to the provisions of this paragraph, the conditional licensee 
or licensee shall maintain a copy of the application at the I channels 
station until such time as the Commission issues an I channels station 
license for point-to-multipoint transmissions; and
    (5) Where an application is granted under this paragraph, and a 
facility operated pursuant to that grant causes harmful, unauthorized 
interference to any cochannel or adjacent channel facility, promptly 
remedy the interference or immediately cease operations of the 
interfering facility, regardless of whether any petitions to deny or 
for other relief were filed against the application during the 
application process. The burden of proving that a facility operated 
under this paragraph is not causing harmful, unauthorized interference 
lies on the licensee of the alleged interfering facility, following the 
filing of a documented complaint of interference by an affected party.
    (m) A response station may be operated unattended. The overall 
performance of the response station transmitter shall be checked by the 
hub licensee as often as necessary to ensure that it is functioning in 
accordance with the requirements of the Commission's rules. The 
licensee of a response station hub is responsible for the proper 
operation of all associated response stations and must have reasonable 
and timely access to all station transmitters. Response stations shall 
be installed and maintained by the licensee of the associated hub 
station, or the licensee's employees or agents, and protected in such 
manner as to prevent tampering or operation by unauthorized persons. No 
response hub may lawfully communicate with any response station which 
has not been installed by an authorized person, and each response 
station hub licensee is responsible for maintaining, and making 
available to the Commission upon request, a list containing the 
customer name and site location (street address and latitude/longitude 
to the nearest second) of each associated response station, plus the 
technical parameters (e.g., EIRP, emission, bandwidth, and antenna 
pattern, height, orientation and polarization) pertinent to each 
specific response station.
    (n) The transmitting apparatus employed at ITFS response stations 
shall have received type certification.
    (o) An ITFS response station shall be operated only when engaged in 
communication with its associated ITFS response station hub or ITFS 
station, or

[[Page 65124]]

for necessary equipment or system tests and adjustments. Radiation of 
an unmodulated carrier and other unnecessary transmissions are 
forbidden.
    (p) At least 20 days prior to the activation of a response station 
transmitter located within a radius of 1960 feet of a registered or 
previously-applied-for ITFS receive site, the response station hub 
licensee must notify, by certified mail, the licensee of the ITFS site 
of the intention to activate the response station. The notification 
must contain the street address and geographic coordinates (to the 
nearest second) of the response station, a specification of the 
station's EIRP, antenna pattern/orientation/height AMSL, channel(s) to 
be used, as well as the name and telephone number of a contact person 
who will be responsible for coordinating the resolution of any 
interference problems.
    (q) Interference calculations shall be performed in accordance with 
Appendix D to the Report and Order in MM Docket No. 97-217, FCC 98-231, 
``Methods For Predicting Interference From Response Station 
Transmitters and To Response Station Hubs and For Supplying Data on 
Response Station Systems.'' Compliance with the out-of-band emission 
limitations shall be established in accordance with Sec. 21.908(e) of 
this chapter.
    41. New Sec. 74.940 is added, to read as follows:


Sec. 74.940  Individually licensed 125 kHz channel ITFS response 
stations.

    (a) The provisions of Sec. 74.939 (a), (e), (h), (j), (k), (n) and 
(o), also shall apply with respect to authorization of a 125 kHz 
channel(s) ITFS response station not under a response station hub 
license. The applicant shall comply with the requirements of 
Sec. 21.902 of this chapter, and Sec. 21.938 of this chapter where 
appropriate, including the provisions of Secs. 21.909 of this chapter, 
21.913 of this chapter, 74.939 and 74.985 regarding the protection of 
response station hubs and booster service areas from harmful 
electromagnetic interference, using the appropriately adjusted 
interference protection values based upon the ratio of the bandwidths 
in use, where the authorized or previously-proposed cochannel or 
adjacent channel station is operated or to be operated in a system with 
one or more response station hub(s).
    (b) An application for a license to operate a new or modified 125 
kHz channel(s) ITFS response station not under a response station hub 
license shall be filed with the Commission in Washington, DC, on FCC 
Form 330. The applicant shall supply the following information on that 
form for each response station:
    (1) The geographic coordinates and street address of the ITFS 
response station transmitting antenna; and
    (2) The manufacturer's name, type number, operating frequency, and 
power output of the proposed ITFS response station transmitter; and
    (3) The type of transmitting antenna, power gain, azimuthal 
orientation and polarization of the major lobe of radiation in degrees 
measured clockwise from True North; and
    (4) A sketch giving pertinent details of the ITFS response station 
transmitting antenna installation including ground elevation of the 
transmitter site above mean sea level; overall height above ground, 
including appurtenances, of any ground-mounted tower or mast on which 
the transmitting antenna will be mounted or, if the tower or mast is or 
will be located on an existing building or other manmade structure, the 
separate heights above ground of the building and the tower or mast 
including appurtenances; the location of the tower or mast on the 
building; the location of the transmitting antenna on the tower or 
mast; and the overall height of the transmitting antenna above ground.
    (c) Each ITFS response station licensed under this section shall 
comply with the following:
    (1) No ITFS response station shall be located beyond the protected 
service area of the ITFS station with which it communicates; and
    (2) No ITFS response station shall operate with a transmitter 
output power in excess of 2 watts; and
    (3) No ITFS response station shall operate at an excess of 16 dBW 
EIRP.
    (d) During breaks in communications, the unmodulated carrier 
frequency shall be maintained within 35 kHz of the assigned frequency 
at all times. Adequate means shall be provided to insure compliance 
with this rule.
    (e) Each ITFS response station shall employ a directive 
transmitting antenna oriented towards the transmitter site of the 
associated ITFS station or towards the response station hub with which 
the ITFS response station communicates. The beamwidth between half 
power points shall not exceed 15 deg. and radiation in any minor lobe 
of the antenna radiation pattern shall be at least 20 dB below the 
power in the main lobe of radiation.
    (f) A response station may be operated unattended. The overall 
performance of the response station transmitter shall be checked by the 
licensee of the station or hub receiving the response signal, or by the 
licensee's employees or agents, as often as necessary to ensure that 
the transmitter is functioning in accordance with the requirements of 
the Commission's rules. The licensee of the station or hub receiving 
the response signal is responsible for the proper operation of the 
response station and must have reasonable and timely access to the 
response station transmitter. The response station shall be installed 
and maintained by the licensee of the associated station or hub, or the 
licensee's employees or agents, and protected in such manner as to 
prevent tampering or operation by unauthorized persons. No response 
station which has not been installed by an authorized person may 
lawfully communicate with any station or hub.


Sec. 74.950  [Removed]

    42. Section 74.950 is removed.
    43. In Sec. 74.951, paragraph (b) is revised to read as follows:


Sec. 74.951  Modification of transmission systems.

* * * * *
    (b) Any change in the antenna system affecting the direction of 
radiation, directive radiation pattern, antenna gain, or radiated 
power; provided, however, that a licensee may install a sectorized 
antenna system without prior consent if such system does not change 
polarization or result in an increase in radiated power by more than 
one dB in any direction, and notice of such installation is provided to 
the Commission on FCC Form 331 within ten (10) days of installation.
* * * * *
    44. Section 74.952 is revised to read as follows:


Sec. 74.952  Acceptability of equipment for licensing.

    ITFS transmitters must be type certified by the Commission for the 
particular signals that will be employed in actual operation. Either 
the manufacturer or the licensee must obtain transmitter certification 
for the transmitter by filing an application for certification with 
appropriate information concerning the signal waveforms and 
measurements.
    45. In Sec. 74.961, paragraph (a) is revised to read as follows:


Sec. 74.961  Frequency tolerance.

    (a) The frequency of any ITFS station, or of any ITFS booster 
station authorized pursuant to Sec. 74.985(b), shall be maintained 
within 1 kHz of the assigned frequency at all times when 
the station is in operation. ITFS

[[Page 65125]]

booster stations authorized pursuant to Sec. 74.985(e) and ITFS 
response stations authorized pursuant to Sec. 74.939 shall employ 
transmitters with sufficient frequency stability to ensure that the 
emission stays within the authorized bandwidth. A transmitter licensed 
prior to November 1, 1991, that remains at the station site initially 
licensed and does not comply with this paragraph may continue to be 
used for its life if it does not cause harmful interference to the 
operation of any other licensee. Any non-conforming transmitter 
replaced after November 1, 1991, must be replaced by a transmitter 
meeting the requirements of this paragraph.
* * * * *
    46. Section 74.965 is revised to read as follows.


Sec. 74.965  Posting of station license.

    (a) The instrument of authorization, a clearly legible photocopy 
thereof, or the name, address and telephone number of the custodian of 
the instrument of authorization shall be available at each station, 
booster station authorized pursuant to Sec. 74.985(b) and ITFS response 
station hub. Each operator of an ITFS booster station shall post at the 
booster station the name, address and telephone number of the custodian 
of the notification filed pursuant to Sec. 74.985(e) if such 
notification is not maintained at the booster station.
    (b) If an ITFS station, an ITFS booster station or an ITFS response 
station hub is operated unattended, the call sign and name of the 
licensee shall be displayed such that it may be read within the 
vicinity of the transmitter enclosure or antenna structure.
    47. In Sec. 74.982, paragraph (b) is revised, and new paragraph (g) 
is added, to read as follows:


Sec. 74.982  Station identification.

* * * * *
    (b) Except as otherwise provided in paragraphs (c) and (d) of this 
section, each instructional television fixed station solely utilizing 
analog transmissions shall transmit its call sign at the beginning and 
end of each period of operation and, during operation, on the hour. 
Visual or aural transmissions shall be employed.
* * * * *
    (g) The provisions of paragraphs (b) through (e) of this section 
shall not apply to any ITFS licensee's station or transmissions where 
digital transmissions are utilized by the ITFS licensee on any of its 
licensed or shifted channels.
    48. Section 74.985 is revised to read as follows:


Sec. 74.985  Signal booster stations.

    (a) An ITFS booster station may reuse channels to repeat the 
signals of ITFS stations or to originate signals on ITFS channels. The 
aggregate power flux density generated by an ITFS station and all 
associated signal booster stations and all simultaneously operating 
cochannel response stations licensed to or applied for by the applicant 
may not exceed -73 dBW/m2 (or, when subchannels or 125 kHz 
channels are used, the appropriately adjusted value based upon the 
ratio of the channel-to-subchannel or 125 kHz bandwidths) at or beyond 
the boundary of the protected service area, as defined by 
Sec. 21.902(d)(1) of this chapter, of the main ITFS station whose 
channels are being reused, as measured at locations for which there is 
an unobstructed signal path, unless the consent of the cochannel 
licensee is obtained.
    (b) An ITFS licensee or conditional licensee who is a response 
station hub licensee, conditional licensee or applicant may secure a 
license for an ITFS signal booster station that has a maximum power 
level in excess of -9 dBW EIRP (or, when subchannels or superchannels, 
or 125 kHz channels, are used, the appropriately adjusted value based 
upon the ratio of 6 MHz to the subchannel or superchannel, or 125 kHz, 
bandwidth) and that employs only digital modulation with uniform power 
spectral density in accordance with the Commission's Declaratory Ruling 
and Order, 11 FCC Rcd 18839 (1996) (a ``high-power ITFS signal booster 
station''). The applicant for a high-power ITFS signal booster station 
shall file FCC Form 331 with the Commission in Washington, DC, and 
certify on that form that the applicant has complied with the 
additional requirements of paragraph (b) of this section. Failure to 
certify compliance and to comply completely with the following 
requirements of paragraph (b) of this section shall result in dismissal 
of the application or revocation of the high-power ITFS signal booster 
station license, and may result in imposition of a monetary forfeiture. 
The applicant for a high-power ITFS signal booster station additionally 
is required to submit to International Transcription Services, Inc., 
1231 20th Street, N.W., Washington, DC 20036, both in hard copy, and on 
a 3.5'' computer diskette in ASCII, and likewise to submit to the 
Commission, only upon Commission staff request, duplicates of the Form 
331 filed with the Commission, and the following information:
    (1) A demonstration that the proposed signal booster station site 
is within the protected service area, as defined in Sec. 21.902(d)(1) 
of this chapter, of the main ITFS station whose channels are to be 
reused; and
    (2) A demonstration that the booster service area is entirely 
within the protected service area of the ITFS station whose channels 
are being reused, or in the alternative, that the licensee entitled to 
any cochannel protected service area which is overlapped by the 
proposed booster service area has consented to such overlap; and
    (3) A demonstration that the proposed booster service area can be 
served by the proposed booster without interference; and
    (4) A study which demonstrates that the aggregate power flux 
density of the ITFS station and all associated booster stations and 
simultaneously operating cochannel response stations licensed to or 
applied for by the applicant does not exceed -73 dBW/m\2\ 
(or, when subchannels or 125 kHz channels are used, the appropriately 
adjusted value based upon the ratio of the channel-to-subchannel or 125 
kHz bandwidths) at or beyond the boundary of the protected service area 
of the main ITFS station whose channels are to be reused, as measured 
at locations for which there is an unobstructed signal path, unless the 
consent of affected licensees has been obtained; and
    (5) In lieu of the requirements of Sec. 74.903, a study which 
demonstrates that the proposed signal booster station will cause no 
harmful interference (as defined in Sec. 74.903(a) (1) and (2)) to 
cochannel and adjacent channel, authorized or previously-proposed ITFS 
and MDS stations with protected service area center coordinates as 
specified in Sec. 21.902(d) of this chapter, to any authorized or 
previously-proposed response station hubs, booster service areas, or I 
channel stations associated with such ITFS and MDS stations, or to any 
previously-registered ITFS receive sites, within 160.94 kilometers (100 
miles) of the proposed booster station's transmitter site. Such study 
shall consider the undesired signal levels generated by the proposed 
signal booster station, the main station, all other licensed or 
previously-proposed associated booster stations, and all simultaneously 
operating cochannel response stations licensed to or applied for by the 
applicant. In the alternative, a statement from the affected MDS or 
ITFS licensee or conditional licensee stating that it does not object 
to operation of the high-power ITFS signal booster station may be 
submitted; and
    (6) A description of the booster service area; and

[[Page 65126]]

    (7) A certification that copies of the materials set forth in 
paragraph (b) of this section have been served upon the licensee or 
conditional licensee of each station (including each response station 
hub and booster station) required to be studied pursuant to paragraph 
(b)(5) of this section, and upon any affected holder of a BTA or PSA 
authorization pursuant to paragraph (b)(4) of this section.
    (c) Applications for high-power ITFS signal booster station 
licenses shall be deemed minor change applications and, except as 
provided in Sec. 74.911(e), may be filed at any time. Notwithstanding 
any other provision of part 74, applications for high-power ITFS signal 
booster station licenses meeting the requirements of paragraph (b) of 
this section shall cut-off applications that are filed on a subsequent 
day for facilities that would cause harmful electromagnetic 
interference to the proposed booster stations.
    (d) Notwithstanding the provisions of Sec. 74.912 and except as 
provided in Sec. 74.911(e), any petition to deny an application for a 
high-power ITFS signal booster station license shall be filed no later 
than the sixtieth (60th) day after the date of public notice announcing 
the filing of such application or major amendment thereto. 
Notwithstanding Sec. 74.911(d) and except as provided in 
Sec. 74.911(e), an application for a high-power ITFS signal booster 
station license that meets the requirements of paragraph (b) of this 
section shall be granted on the sixty-first (61st) day after the 
Commission shall have given public notice of the acceptance for filing 
of it, or of a major amendment to it if such major amendment has been 
filed, unless prior to such date either a party in interest timely 
files a formal petition to deny or for other relief pursuant to 
Sec. 74.912, or the Commission notifies the applicant that its 
application will not be granted. Where an application is granted 
pursuant to the provisions of this paragraph, the conditional licensee 
or licensee shall maintain a copy of the application at the ITFS 
booster station until such time as the Commission issues a high-power 
ITFS signal booster station license.
    (e) Eligibility for a license for an ITFS signal booster station 
that has a maximum power level of -9 dBW EIRP (or, when subchannels or 
superchannels, or 125 kHz channels, are used, the appropriately 
adjusted value based upon the ratio of 6 MHz to the subchannel or 
superchannel, or 125 kHz, bandwidth) (a ``low-power ITFS signal booster 
station'') shall be restricted to an ITFS licensee or conditional 
licensee. A low-power ITFS signal booster station may operate only on 
one or more ITFS channels that are licensed to the licensee of the ITFS 
booster station, but may be operated by a third party with a fully-
executed lease or consent agreement with the ITFS conditional licensee 
or licensee. An ITFS licensee or conditional licensee may install and 
commence operation of a low-power ITFS signal booster station for the 
purpose of retransmitting the signals of the ITFS station or for 
originating signals. Such installation and operation shall be subject 
to the condition that for sixty (60) days after installation and 
commencement of operation, no objection or petition to deny is filed by 
an authorized cochannel or adjacent channel ITFS or MDS station with a 
transmitter within 8.0 kilometers (5 miles) of the coordinates of the 
low-power ITFS signal booster station. An ITFS licensee or conditional 
licensee seeking to install a low-power ITFS signal booster station 
under this rule must, within 48 hours after installation, submit FCC 
Form 331 to the Commission in Washington, DC, and submit to 
International Transcription Services, Inc., 1231 20th Street, NW., 
Washington, DC 20036, both in hard copy, and on a 3.5'' computer 
diskette in ASCII, duplicates of the Form 331 filed with the 
Commission, and the following (which also shall be submitted to the 
Commission only upon Commission staff request at any time):
    (1) A description of the signal booster technical specifications 
(including an antenna envelope plot or, if the envelope plot is on file 
with the Commission, the make and model of the antenna, antenna gain 
and azimuth), the coordinates of the booster, the height of the center 
of radiation above mean sea level, the street address of the signal 
booster, and a description of the booster service area; and
    (2) A demonstration that the booster service area is entirely 
within the protected service area of the station whose channels are 
being reused, or, in the alternative, that the licensee entitled to any 
protected service area which is overlapped by the proposed booster 
service area has consented to such overlap; and
    (3) A demonstration that the proposed booster service area can be 
served by the proposed booster without interference; and
    (4) A certification that no Federal Aviation Administration 
determination of No Hazard to Air Navigation is required under part 17 
of this chapter or, if such determination is required, either
    (i) A statement of the FCC Antenna Structure Registration Number; 
or
    (ii) If an FCC Antenna Structure Registration Number has not been 
assigned for the antenna structure, the filer must indicate the date 
the application by the antenna structure owner to register the antenna 
structure was filed with the FCC in accordance with part 17 of this 
chapter; and
    (5) A certification that
    (i) The maximum power level of the signal booster transmitter does 
not exceed -9 dBW EIRP (or, when subchannels or superchannels, or 125 
kHz channels, are used, the appropriately adjusted value based upon the 
ratio of 6 MHz to the subchannel or superchannel, or 125 kHz, 
bandwidth); and
    (ii) Where the booster is operating on channel D4, E1, F1, E2, F2, 
E3, F3, E4, F4 and/or G1, no registered receiver of an ITFS E or F 
channel station, constructed prior to May 26, 1983, is located within a 
1 mile (1.61 km) radius of the coordinates of the booster, or in the 
alternative, that a consent statement has been obtained from the 
affected ITFS licensee; and
    (iii) The applicant has complied with Sec. 1.1307 of this chapter; 
and
    (iv) Each MDS and/or ITFS station licensee (including the licensees 
of booster stations and response station hubs) with protected service 
areas and/or registered receivers within a 8 km (5 mile) radius of the 
coordinates of the booster has been given notice of its installation; 
and
    (v) The signal booster site is within the protected service area of 
the ITFS station whose channels are to be reused; and
    (vi) The aggregate power flux density of the ITFS station and all 
associated booster stations and simultaneously operating cochannel 
response stations licensed to or applied for by the applicant does not 
exceed -73 dBW/m2 (or, when subchannels or 125 kHz channels are used, 
the appropriately adjusted value based upon the ratio of the channel-
to-subchannel or 125 kHz bandwidths) at or beyond the boundary of the 
protected service area of the main ITFS station whose channels are to 
be reused, as measured at locations for which there is an unobstructed 
signal path, unless the consent of affected licensees has been 
obtained; and
    (vii) The antenna structure will extend less than 6.10 meters (20 
feet) above the ground or natural formation or less than 6.10 meters 
(20 feet) above an existing manmade structure (other than an antenna 
structure); and
    (viii) The ITFS conditional licensee or licensee understands and 
agrees that in

[[Page 65127]]

the event harmful interference is claimed by the filing of an objection 
or petition to deny, the conditional licensee or licensee must 
terminate operation within two (2) hours of notification by the 
Commission, and must not recommence operation until receipt of written 
authorization to do so by the Commission.
    (f) Commencing upon the filing of an application for a high-power 
ITFS signal booster station license and until such time as the 
application is dismissed or denied or, if the application is granted, a 
letter informing the Commission of completion of construction is 
submitted, an applicant for any new or modified MDS or ITFS station 
(including any response station hub, high-power booster station, or I 
channels station) shall demonstrate compliance with the interference 
protection requirements set forth in Secs. 21.902(i) of this chapter, 
21.938(b)(3) of this chapter or 74.903 with respect to any previously-
proposed or authorized booster service area both using the transmission 
parameters of the high-power ITFS signal booster station (e.g., EIRP, 
polarization(s) and antenna height) and the transmission parameters of 
the ITFS station whose channels are to be reused by the high-power ITFS 
signal booster station. Upon the submission of a letter informing the 
Commission of completion of construction of an ITFS booster station 
applied for pursuant to paragraph (b) of this section, or upon the 
submission of an ITFS booster station notification pursuant to 
paragraph (e) of this section, the ITFS station whose channels are 
being reused by the ITFS signal booster shall no longer be entitled to 
interference protection pursuant to Secs. 21.902(i) of this chapter, 
21.938(b)(3) of this chapter and 74.903 within the booster service area 
based on the transmission parameters of the ITFS station whose channels 
are being reused. A booster station shall not be entitled to protection 
from interference caused by facilities proposed on or prior to the day 
the application or notification for the booster station is filed. A 
booster station shall not be required to protect from interference 
facilities proposed on or after the day the application or notification 
for the booster station is filed.
    (g) Where an application is granted under paragraph (d) of this 
section, if a facility operated pursuant to that grant causes harmful, 
unauthorized interference to any cochannel or adjacent channel 
facility, it must promptly remedy the interference or immediately cease 
operations of the interfering facility, regardless of whether any 
petitions to deny or for other relief were filed against the 
application during the application process. The burden of proving that 
a high-power ITFS signal booster station is not causing harmful, 
unauthorized interference lies on the licensee of the alleged 
interfering facility, following the filing of a documented complaint of 
interference by an affected party.
    (h) In the event any MDS or ITFS receive site suffers interference 
due to block downconverter overload, the licensee of each signal 
booster station within five miles of such receive site shall cooperate 
in good faith to expeditiously identify the source of the interference. 
Each licensee of a signal booster station contributing to such 
interference shall bear the joint and several obligation to promptly 
remedy all interference resulting from block downconverter overload at 
any ITFS receive site registered prior to the submission of the 
application or notification for the signal booster station or at any 
receive site within an MDS or ITFS protected service area applied for 
prior to the submission of the application or notification for the 
signal booster station, regardless of whether the receive site 
suffering the interference was constructed prior to or after the 
construction of the signal booster station(s) causing the downconverter 
overload; provided, however, that the licensee of the registered ITFS 
receive site or the MDS or ITFS protected service area must cooperate 
fully and in good faith with efforts by the signal booster station 
licensee to prevent interference before constructing the signal booster 
station and/or to remedy interference that may occur. In the event that 
more than one signal booster station licensee contributes to block 
downconverter interference at a MDS or ITFS receive site, the licensees 
of the contributing signal booster stations shall cooperate in good 
faith to remedy promptly the interference.
    49. In Sec. 74.986, paragraph (a) is revised, and new paragraph 
(a)(8) is added, to read as follows:


Sec. 74.986  Involuntary ITFS station modifications.

    (a) Parties specified in paragraph (b) of this section may, subject 
to Commission approval, involuntarily modify the facilities of an 
existing ITFS licensee in the following situations:
* * * * *
    (8) There are no response station hubs licensed to or previously-
proposed by any of the parties specified in paragraph (b) of this 
section, in the same system as the existing ITFS licensee of whose 
facilities involuntary modification is sought; however, in no event 
shall the Commission approve an involuntary retuning of an existing 
ITFS licensee's station to other frequencies, except as provided in 
Sec. 74.902(i) through (k).
* * * * *
    50. The alphabetical index to part 74 is amended by adding ``ITFS'' 
as the last entry under the ``Changes of Equipment'' heading; removing 
the ``ITFS'' entry from under the ``Equipment and installation'' 
heading; removing the ``ITFS'' entry from under the ``Equipment 
Performance'' heading; revising the entries under the ``ITFS'' heading; 
removing the ``ITFS'' entry from under the ``Remote control operation'' 
heading; revising the ``Signal boosters, UHF translator (LPTV/TV 
Translators)'' heading to read ``Signal boosters'', and adding entries 
under the ``Signal boosters'' heading; removing the ``Mutually 
exclusive applications, selection procedure (ITFS)'' heading; revising 
the ``Response stations (ITFS)'' heading; and adding in alphabetical 
order a ``Response station hubs (ITFS)'' heading and a ``Wireless cable 
usage of ITFS'' heading, to read as follows:

                       Alphabetical Index--Part 74
------------------------------------------------------------------------
 
------------------------------------------------------------------------
 
*                  *                  *                  *
                  *                  *                  *
Changes of Equipment--
 
*                  *                  *                  *
                  *                  *                  *
    ITFS...................................................       74.951
 
*                  *                  *                  *
                  *                  *                  *
ITFS--
    Application processing.................................       74.911

[[Page 65128]]

 
    Application requirements from part 73..................       74.910
    Interference...........................................       74.903
    Petition to deny.......................................       74.912
    Purpose and permissible service........................       74.931
    Response station hubs..................................       74.939
    Response stations (individually licensed)..............       74.940
    Signal booster stations................................       74.985
    Transmission standards.................................       74.938
    Wireless cable use.....................................       74.990
 
*                  *                  *                  *
                  *                  *                  *
    Response station hubs (ITFS)...........................       74.939
    Response stations (ITFS; individually licensed)........       74.940
 
*                  *                  *                  *
                  *                  *                  *
Signal boosters--
    UHF translator (LPTV/TV Translators)...................       74.733
    ITFS...................................................       74.985
 
*                  *                  *                  *
                  *                  *                  *
 
                                    W
 
    Wireless cable usage of ITFS...........................       74.990
 
*                  *                  *                  *
                  *                  *                  *
------------------------------------------------------------------------

[FR Doc. 98-31334 Filed 11-24-98; 8:45 am]
BILLING CODE 6712-01-P