[Federal Register Volume 64, Number 9 (Thursday, January 14, 1999)]
[Proposed Rules]
[Pages 2462-2466]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-837]



[[Page 2462]]

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 2

[ET Docket No. 98-237, FCC 98-337]


3650-3700 MHz Government Transfer Band

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: This document proposes to allocate the 3650-3700 MHz band to 
the non-Government fixed service on a primary basis. In addition, we 
order that applications for use of this band by new or major modified 
earth station facilities in the fixed-satellite service (``FSS'') will 
no longer be accepted, as December 18, 1998, the release date of this 
Notice of Proposed Rule Making and Order. We also propose to delete the 
existing Government and non-Government radiolocation service 
allocations from the 3650-3700 MHz band, but will grandfather three 
existing Government radiolocation sites. We also propose to delete the 
unused Government aeronautical radionavigation service allocation from 
the 3650-3700 MHz band. The adoption of these proposals would provide 
spectrum for new fixed services.

DATES: Comments are due February 16, 1999, reply comments are due March 
1, 1999.

ADDRESSES: All filings must be sent to the Commission's Secretary, 
Magalie Roman Salas, Office of the Secretary, Federal Communications 
Commission, 445 12th Street, SW, Room TW-A325, Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Tom Mooring, Office of Engineering and 
Technology, (202) 418-2450.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rule Making and Order, ET Docket No. 98-237, FCC 98-337, 
adopted December 17, 1998, and released December 18, 1998. The full 
text of this Commission decision is available for inspection and 
copying during normal business hours in the FCC Reference Center (Room 
239), 1919 M Street, NW, Washington, DC, and also may be purchased from 
the Commission's duplication contractor, International Transcription 
Service, (202) 857-3800, 1231 20th Street, NW, Washington, DC 20036.

Summary of the Notice of Proposed Rule Making and Order

    1. Introduction. By this action, we propose to allocate the 3650-
3700 MHz band to the non-Government fixed service on a primary basis. 
We envision that this spectrum will be used to provide a broad range of 
new fixed point-to-point and point-to-multipoint services, directly 
linking residences, businesses, and other fixed locations to an ever-
developing array of networks. Through these new links, traditional 
voice telephony and a wide variety of new broadband, high-speed, data 
and video services, such as Internet access and video conferencing, 
could be delivered to the home and to small businesses. This new fixed 
service may thus lead to new and more effective competition to existing 
wireline local exchange carrier services by providing for an economical 
means to offer competitive ``local loop'' or ``last-mile'' facilities. 
One such service that could operate in this band is Fixed Wireless 
Access (``FWA''), but we do not intend to constrain use of the band 
only to that purpose. In addition, we intend that this proposal will be 
helpful in achieving the overarching goal of section 706 of the 
Telecommunications Act of 1996, to ``encourage the deployment on a 
reasonable and timely basis of advanced telecommunications capability 
to all Americans * * * by utilizing * * * measures that promote 
competition in the local telecommunications market.''
    2. To ensure that adequate opportunities exist for the provision of 
fixed services in the 3650-3700 MHz band, we will no longer accept 
applications for use of this band by new or major modified earth 
station facilities in the FSS, as of December 18, 1998, the release 
date of the Notice of Proposed Rule Making and Order. Existing earth 
stations, however, will be grandfathered. We also propose to delete the 
existing Government and non-Government radiolocation service 
allocations from the 3650-3700 MHz band, but will grandfather three 
existing Government radiolocation sites. In addition, we propose to 
delete the unused Government aeronautical radionavigation service 
allocation from the 3650-3700 MHz band. Finally, we request comment on 
whether, to realize the full potential benefits of this spectrum, the 
band should be offered for license as a single 50 megahertz block on 
either a nationwide or large regional service area basis.

A. Fixed Service Proposal

    3. An important spectrum management goal of the Commission for 
terrestrial commercial wireless services is to promote efficient and 
flexible use of the electromagnetic spectrum while enabling licensees 
to use the spectrum free of harmful interference. Specifically for the 
3650-3700 MHz band, our reallocation decision must accommodate 
continued use of the band for incumbent earth station reception of FSS 
signals--which are significantly weaker than the anticipated 
terrestrial service signals--and for incumbent high-powered Government 
radars transmitting from three grandfathered sites. Moreover, our 
decision must account for the extremely high emissions that are 
produced by high-powered Government fixed and mobile radar operations 
in adjacent spectrum below 3650 MHz. In light of this challenging 
spectrum sharing environment, we tentatively find that mobile service 
use of the 3650-3700 MHz band would be severely constrained but that 
the band is well suited for fixed service use. Nonetheless, we believe 
that there is a broad range of fixed services that could operate in 
this spectrum. In particular, a fixed service allocation in this band 
may facilitate an alternative means of providing basic telephone 
service, thus mitigating the impact of the local loop bottleneck and 
fostering a competitive market structure for direct PSTN access to 
residential and small business consumers. A fixed service allocation 
also may be used to provide broadband access to the Internet, thus 
furthering the general objectives of section 706 to bring competitive, 
advanced telecommunications capability to all Americans.
    4. Internationally, this type of fixed service is known as FWA and 
there is strong interest in providing for these services in the 3400-
3700 MHz frequency range, especially the 3400-3600 MHz band. In the 
United States, the 3400-3600 MHz band is not available because it is 
heavily used by the military, thus allocation of alternative or 
additional spectrum that could be used for this type of service may be 
desirable. We believe that the 3650-3700 MHz band is viable for the 
provision of some types of FWA services. Accordingly, we propose to 
allocate the 3650-3700 MHz band to the fixed service on a co-primary 
basis with incumbent non-Government FSS earth stations and with 
Government radiolocation operations from three grandfathered sites. 
However, in keeping with our policy favoring a licensee's innovative 
use of the spectrum in response to consumer market demand, we do not 
intend to designate the allocation for, or to limit use of this 
spectrum to, FWA services. Thus, the extent to which FWA--or any other 
particular fixed services--would be implemented in the proposed

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allocation would be determined solely by market forces. We anticipate 
that this spectrum will be initially licensed by competitive bidding 
pursuant to the authority granted under section 309(j) of the 
Communications Act. We seek comment on our proposal.
    5. During the coordination process, NTIA informed us that the 
recently enacted statutory provision concerning payment of the 
relocation costs of Federal entities does not apply to the 3650-3700 
MHz band. Based on our own independent analysis, we reach the same 
conclusion.
    6. Commenters should also address various technical issues 
pertinent to fixed service use of the 3650-3700 MHz band, including 
FWA. For example, we are aware that existing FWA technology deployed 
internationally in the 3400-3600 MHz band uses Frequency Division 
Duplex (``FDD'') technology with either a 50- or 100-megahertz 
separation between transmit and receive channels. The amount of 
spectrum available in the instant allocation, however, lends itself to 
a maximum separation of 25-megahertz, which may be insufficient to 
support traditional FDD technology. Nevertheless, fixed services using 
Time Division Duplex (``TDD'') technology may be viable in the band. We 
request comment on these technical issues. Commenters should address 
whether FDD technology could be successfully developed and deployed in 
this band and whether TDD technology deployment in the band is likely 
to be viable for service to consumers.
    7. We also want to consider the ramifications of our allocation 
proposal for the development of service rules in a subsequent 
rulemaking proceeding. Generally, we request comment on whether the 
Local Multipoint Distribution Service (``LMDS'') (Part 101, Subparts L 
and M) or Wireless Communications Service (``WCS'') (Part 27) service 
rules, modified as necessary, or an entirely new set of service rules, 
should be applied to the fixed services offered pursuant to the new 
allocation. Specifically, in view of the limited amount of spectrum 
subject to the proposed allocation and the significant pertinent 
technical constraints, we request comment on how a choice of initial 
spectrum licensing blocks and geographic service areas will, in light 
of the current state of technology, affect the viability in the band of 
the various fixed services, including FWA. In particular, we seek 
comment on the size of the spectrum blocks within the 3650-3700 MHz 
band that should be offered for initial licensing. For instance, should 
the spectrum be initially licensed as a single 50-megahertz block or 
would the various fixed services still be viable if initially licensed 
as two or more blocks of spectrum? If the latter, should the spectrum 
be initially offered as contiguous or paired blocks and, if paired 
blocks, should they be symmetric or asymmetric in size. In addition, we 
seek comment on the appropriate geographic size of service areas for 
initial licensing. Specifically, we request comment on whether, in 
order to facilitate widespread competition in the ``local loop'' or 
``last-mile'' facilities market, the band should be initially licensed 
for a single nationwide service area, or for several large regional 
service areas, or for some other choice of smaller geographic service 
areas. We invite comment on the competitive ramifications of offering 
only a single license, covering the entire 50 megahertz of spectrum 
nationwide. For example, could such a sole licensee garner an economic 
monopoly or have undue market power, or would it face adequate 
competition from wireline and wireless service providers? To what 
extent, if any, would imposition of licensee eligibility requirements 
affect the answer to the preceding question?
    8. The specific radio frequency environment for the 3650-3700 MHz 
band in the United States raises additional technical issues. Any new 
service in the band must be able to co-exist with extremely high-
powered Government mobile radar systems in the adjacent 3300-3650 MHz 
band, as well as with occasional high-powered in-band use at three 
grandfathered sites (Pascagoula, Mississippi; Pensacola, Florida; and 
Saint Inigoes, Maryland). We request comment on what actions we should 
take to promote the ability of new services to co-exist with these 
radars. Also, given the need to protect adjacent band FSS earth station 
reception, we request comment on whether the out-of-band emissions 
limit of 43 + 10 log (P) dB should be applied to the proposed fixed 
service allocation. In addition, we request comment on whether Very 
Small Aperture Terminals (``VSATs'') should be precluded from operating 
in spectrum immediately adjacent to the new fixed service allocation, 
perhaps by requiring a 3.5-meter diameter minimum antenna size for 
earth stations licensed to receive the 3700-3720 MHz segment.
    9. As part of our evaluation of the 3650-3700 MHz band for the 
proposed fixed service, we are cognizant of the need to protect earth 
station reception of very weak signals transmitted by geostationary 
orbit FSS satellites in the band. We are disinclined, however, to apply 
to this band the spectrum sharing criteria now used in the adjacent 
3700-4200 MHz band. In particular, we note that the maximum equivalent 
isotropically radiated power limit now employed for long-haul fixed 
point-to-point transmissions in the 3700-4200 MHz band--55 dBW per 
polarization--appears inappropriate for short-haul fixed point-to-
multipoint services that licensees may wish to provide in the 3650-3700 
MHz band. Specifically, we observe that high-power, fixed point-to-
point operations co-exist with C-band earth stations because of the 
extremely large coordination distances employed in siting new 
facilities; but these coordination distances may unnecessarily 
constrain the deployment in the band of fixed links that require less 
power. For instance, one frequency coordinator, Comsearch, requires 
coordination of all new C-band microwave stations that would be located 
within a 125-mile radius around any FSS earth station operating in C-
band. This coordination method, however, appears too onerous for other 
fixed services that could use the 3650-3700 MHz band. Instead, if 
appropriately more restrictive power limits were imposed on some fixed 
service uses of this band, e.g., FWA, we believe that the viability of 
these services in the band would be unaffected and that the 
coordination distance requirement could be significantly reduced. For 
example, we could subject certain fixed stations transmitting in the 
3650-3700 MHz band to power limits similar to those now employed for 
Broadband PCS, i.e., a base station height/power limit of 1640 watts 
peak e.i.r.p. with an antenna height up to 300 meters (984 feet). We 
request comment on this issue, and on the appropriate coordination 
distances needed to protect in-band FSS earth station reception if the 
above height/power limit and the associated height/power reduction 
table are ultimately adopted. Commenters should address how the choice 
of technical parameters affects the viability in the band of various 
fixed services and their ability to coordinate or share spectrum with 
FSS earth stations.

B. Other Services

    10. FSS. In order to preserve the availability of the 3650-3700 MHz 
band for the proposed fixed service, license applications for new earth 
stations, major amendments to pending earth station facilities 
applications,1 or

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applications for major modifications to existing earth station 
facilities 2 filed on or after December 18, 1998, the 
release date of the Notice of Proposed Rule Making and Order will not 
be accepted. The imposition of this interim change in application 
processing is procedural in nature and, therefore, not subject to the 
notice and comment and effective date requirements of the 
Administrative Procedure Act (``APA''). In addition, we find good cause 
for imposing immediately this processing change without following these 
APA requirements because the changes are necessary to preserve the 
status quo availability of the spectrum for terrestrial wireless 
services pending the Commission's ultimate determination in this 
proceeding.3 Also, in order to permanently implement this 
action, we propose to add to the United States Table of Frequency 
Allocations a new non-Government footnote, which would read as follows:

    \1\ See 47 CFR 25.116(b)(1),(4). Major amendments resulting from 
ownership changes or arising under our environmental processing rule 
may still be filed and will be accepted. See 47 CFR 
25.116(b)(2),(3).
    \2\ See 47 CFR 25.117. Modifications not requiring prior 
authorization pursuant to 47 CFR 25.118 would be unaffected.
    \3\ See 5 U.S.C. 553 (b) and (d).

    In the 3650-3700 MHz band and for the fixed-satellite service 
(space-to-Earth), license applications for new earth stations, major 
amendments to pending earth station facilities applications, or 
applications for major modifications to existing earth station 
facilities filed on or after December 18, 1998 shall not be 
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accepted.

We request comment on this proposal, including on how it affects the 
ability of FSS licensees to satisfy the demand for international 
intercontinental downlink capacity in this region of the spectrum. In 
addition, we seek comment on alternative methods to meet the 
terrestrial fixed service's needs in the 3650-3700 MHz band while 
minimizing the effect on FSS operations. Commenters should provide 
detailed supporting engineering data and analysis in support of their 
positions.
    11. We also seek comment on whether the FSS allocation in the band 
should be deleted. If so, we seek comment on whether we should propose 
to grandfather the existing earth stations operating in the band, or 
allow new fixed service licensees to have the right to require 
grandfathered earth stations to vacate the band, subject to 
reimbursement in a manner consistent with the Commission's Emerging 
Technologies, see ET Docket No. 92-9, First Report and Order and Third 
Notice of Proposed Rulemaking, 7 FCC Rcd 6886 (1992), 57 FR 49020, 
October 29, 1992, relocation policies, or whether, in any event, the 
allocation status of these earth stations should be changed to 
secondary after a specified time period, for example, 10 years.
    12. Commercial Radar. Also in order to preserve the availability of 
this spectrum for the proposed fixed service, we propose to delete the 
unused secondary non-Government radiolocation service allocation at 
3650-3700 MHz. We note that there would remain 550 megahertz of 
secondary non-Government radiolocation service spectrum at 3100-3650 
MHz, which we believe is adequate to accommodate current and future 
non-Government radiolocation services in this frequency range. Further, 
because we anticipate that the 3650-3700 MHz band is likely to be 
intensively utilized by the fixed service, deleting this radiolocation 
allocation would eliminate potential interference problems between 
these services. We seek comment on this proposal.
    13. Government Operations. We propose to delete the Government 
radiolocation service allocation from the 3650-3700 MHz mixed-use band, 
except for grandfathering three Government radiolocation sites that 
would continue operations in the band. This proposal would be 
implemented by adding a new United States footnote to the Table of 
Frequency Allocations, which would read as follows:

    In the 3650-3700 MHz band, after January 1, 1999, Government 
operations in the radiolocation service may continue on a primary 
basis at three sites: Pascagoula, Mississippi (30 deg. 22' North 
Latitude, 88 deg. 29' West Longitude); Pensacola, Florida (30 deg. 
21' 28'' North Latitude, 87 deg. 16' 26'' West Longitude); and Saint 
Inigoes, Maryland (38 deg. 10' North Latitude, 76 deg. 23' West 
Longitude). The Commission shall coordinate non-Government fixed 
stations within 80 kilometers of the grandfathered sites on a case-
by-case basis with NTIA through the Frequency Assignment 
Subcommittee. Naval vessels shall not transmit in the 3650-3700 MHz 
band until the vessel is at least [distance to be determined] 
4 nautical miles off the coasts of the United States, 
Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana 
Islands, and American Samoa.
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    \4\ The Commission and NTIA are discussing this issue in the 
coordination process. We anticipate adopting the distance developed 
in the coordination process in the Report and Order in this 
proceeding.

In addition, we propose to delete the unused Government aeronautical 
radionavigation service (ground-based) allocation from the band. We 
seek comment on these proposals.

C. Possibility of Land Mobile Use

    14. We observe that in ITU Region 2 (the Americas) the 3650-3700 
MHz band is also allocated to the mobile except aeronautical mobile 
service on a primary basis. We have considered whether to propose 
domestic adoption of this allocation, i.e., an allocation in the United 
States for land mobile and maritime mobile uses, but not for 
aeronautical mobile use. We are aware of the difficulties of sharing 
spectrum between low-power FSS satellite signals and mobile units. 
Thus, the Commission has traditionally licensed satellite downlinks in 
bands that are not used by mobile units. Additionally, during the 
coordination process, NTIA indicated that mobile service operations 
within 80 kilometers of the three grandfathered sites should be 
prohibited in order to protect the low-level radar return signals. In 
this instant proceeding, we tentatively find that allocating the 3650-
3700 MHz band to the fixed service only, and not to the land mobile 
service, would better protect incumbent Government radar operations and 
non-Government FSS reception from harmful interference. We request 
comment on this conclusion and, alternatively, on whether we should 
allocate the 3650-3700 MHz band to the land mobile service. Commenters 
supporting a land mobile service allocation should submit detailed 
supporting engineering data and analysis.

D. Receiver Standards

    15. We decline to propose the transmitter emission and receiver 
selectivity standards that NTIA requested in the Final Report because 
we continue to believe that this matter is best left to market forces. 
Specifically, we believe that, by making the appropriate technical 
information available to manufacturers, they will, as a matter of 
course, take into account the electromagnetic environment when 
designing and building equipment for the 3650-3700 MHz 
band.5 This process, we believe, is most likely to encourage 
the development and implementation of innovative technology that will 
promote coexistence with high-powered in-band

[[Page 2465]]

and adjacent band Government radar operations. We request comment on 
our proposal.
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    \5\ We are working closely with NTIA to make available the 
information that potential non-Government licensees will need in 
order to evaluate the viability of new commercial services in the 
3650-3700 MHz band. Specifically, we intend to obtain (1) the 
coordinates of those geographic areas that would be affected by 
Government systems (assuming signal line-of-sight propagation for an 
effective 4/3 Earth radius); and (2) the equipment operating 
characteristics of the Government systems, including the values of 
radar broadband transmit noise, the radar's e.i.r.p. and spectral 
characteristics of the e.i.r.p. as a function of frequency. Once 
NTIA has provided this information, Commission staff will plot the 
impacted areas and we will make this information available to the 
public.
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E. RF Safety

    16. With regard to RF safety requirements, we propose to treat 
stations operating in the 3650-3700 MHz band in a comparable manner to 
other services and devices that have similar operating characteristics. 
Sections 1.1307(b), 2.1091, and 2.1093 of our rules list the services 
and devices for which an environmental evaluation must be performed. 
Accordingly, we propose that an environmental evaluation for RF 
exposure would be required for the following operations: (1) Fixed 
stations and base stations (if land mobile operations are permitted) 
that have an e.i.r.p. greater than 1640 watts; and, (2) land mobile 
stations (if land mobile operations are permitted), including portable 
devices, that have operating characteristics or functions similar to 
cellular, PCS or ``covered'' SMR services, i.e., operations that are 
typified by long periods of use or are interconnected to the public 
switched telephone network. We invite comment on this proposal and 
welcome the submission of alternative proposals that would ensure 
public safety with respect to exposure to RF radiation.
    17. Accordingly, it is ordered that, pursuant to sections 4(i), 
7(a), 303(c), 303(f), 303(g), and 303(r) of the Communications Act of 
1934, as amended, 47 U.S.C. 154(i), 157(a), 303(c), 303(f), 303(g), and 
303(r), the Notice of Proposed Rule Making and Order is adopted.
    18. It is further ordered that, in the 3650-3700 MHz band and for 
the fixed-satellite service (space-to-Earth), license applications for 
new earth stations, major amendments to pending earth station 
applications, or applications for major modifications to existing earth 
station facilities filed on or after December 18, 1998 shall not be 
accepted.
    19. It is further ordered that, in accordance with section 603(a) 
of the Regulatory Flexibility Act, 5 U.S.C. 603(a), the Office of 
Public Affairs, Reference Operations Division, shall send a copy of the 
Notice of Proposed Rule Making and Order, including the Initial 
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of 
the Small Business Administration.

Initial Regulatory Flexibility Analysis

    20. As required by the Regulatory Flexibility Act 
(``RFA''),6 the Commission has prepared an Initial 
Regulatory Flexibility Analysis (``IRFA'') of the possible significant 
economic impact on small entities by the policies and rules proposed in 
the Notice of Proposed Rule Making and Order (ET Docket No. 98-237). 
Written public comments are requested on this IRFA. Comments must be 
identified as responses to the IRFA and must be filed by the deadlines 
for comments on this Notice of Proposed Rule Making and Order. The 
Office of Public Affairs, Reference Operations Division, shall send a 
copy of the Notice of Proposed Rule Making and Order, including the 
Initial Regulatory Flexibility Analysis, to the Chief Counsel for 
Advocacy of the Small Business Administration. See 5 U.S.C. 603(a). The 
Notice of Proposed Rule Making and Order and the IRFA will be published 
in the Federal Register.
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    \6\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et. seq., has 
been amended by the Contract With America Advancement Act of 1996, 
Public Law 104-121, 110 Stat. 847 (1996) (``CWAAA'') Title II of the 
CWAAA is the Small Business Regulatory Enforcement Fairness Act of 
1996 (``SBREFRA'').
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Need for and Objectives of the Proposed Rules

    21. This Notice proposes to allocate the 3650-3700 MHz band to the 
fixed service on a primary basis. We take this action on our own 
initiative in order to make this transfer spectrum available for 
commercial services. The adoption of this proposal would accommodate 
growing demand for fixed services.

Legal Basis

    22. This action is taken pursuant to sections 4(i), 7(a), 303(c), 
303(f), 303(g), and 303(r) of the Communications Act of 1934, as 
amended, 47 U.S.C. 154(i), 157(a), 303(c), 303(f), 303(g), and 303(r).

Description and Estimate of the Number of Small Entities to Which the 
Proposed Rules Will Apply

    23. The RFA generally defines the term ``small entity'' as having 
the same meaning as the terms ``small business,'' ``small 
organization,'' and ``small governmental jurisdiction.'' 7 
For the purposes of this Notice, the IRFA defines a ``small business'' 
to be the same as a ``small business concern'' under the Small Business 
Act,8 unless the Commission has developed one or more 
definitions that are appropriate to its activities.9 Under 
the Small Business Act, a ``small business concern'' is one that: (1) 
is independently owned and operated; (2) is not dominant in its field 
of operation; and (3) meets any additional criteria established by the 
Small Business Administration (``SBA'').10
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    \7\ Id. Sec. 601(6).
    \8\ 15 U.S.C. 632.
    \9\ See 5 U.S.C. 601(3) (incorporating by reference the 
definition of ``small business concern'' in 5 U.S.C. 632).
    \10\ 15 U.S.C. 632.
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    24. The Commission has not developed a definition of small entities 
applicable to Fixed Satellite Service licensees. Therefore, the 
applicable definition of small entity is the definition under the SBA 
rules applicable to Communications services, Not Elsewhere Classified. 
This definition provides that a small entity is one with no more than 
$11.0 million in annual receipts.11 According to Census 
Bureau data, there are 848 firms that fall under the category of 
Communications Services, Not Elsewhere Classified. Of those, 
approximately 775 reported annual receipts of $11 million or less and 
qualify as small entities.12 We note that new services will 
be permitted under the adopted designations for FSS, and we are unable 
at this time to provide a more precise estimate of how many potential 
small entities will be providing these services.
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    \11\ 13 CFR 121.201, Standard Industrial Classification (SIC) 
Code 4899.
    \12\ U.S. Bureau of the Census, U.S. Department of Commerce, 
1992 Census of Transportation, Communications, and Utilities, UC92-
S-1, Subject Series, Establishment and Firm Size, Table 2D, 
Employment Size of Firms, 1992, SIC Code 4899 (issued May 1995).
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    25. As described, the designations we hereby adopt will permit 
wireless services, as broadly defined. Neither the Commission nor the 
SBA has developed a definition of small entities applicable to wireless 
services licensees. Therefore, the applicable definition of small 
entity is the definition under the SBA rules applicable to 
radiotelephone (wireless) companies. This provides that a small entity 
is a radiotelephone company employing no more than 1,500 
persons.13 According to the Bureau of the Census, only 
twelve radiotelephone firms out of a total of 1,178 such firms which 
operated during 1992 had 1,000 or more employees.14 We note 
that new services will be permitted under the adopted designations for 
wireless services, and we are unable at this time to provide a more 
precise estimate of how many potential small entities will be providing 
these services.
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    \13\ 13 CFR 121.201, SIC code 4812.
    \14\ 1992 Census, Series UC92-S-1, at Table 5, SIC code 4812.
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    26. The Commission has not yet determined or proposed how many 
licenses will be awarded, nor will it know how many licensees will be 
small businesses until the auction, if required, is held. Even after 
that, the Commission will not know how many licensees will partition 
their license areas or

[[Page 2466]]

disaggregate their spectrum blocks, if partitioning and disaggregation 
are allowed. This proceeding proposes only to allocate the 3650-3700 
MHz band to the non-Government fixed service generally. A future 
proceeding will address service rules specifically, and we will address 
small business concerns at that time. We invite comment on this 
analysis.

Description of Projected Reporting, Recordkeeping and Other Compliance 
Requirements

    27. Rules that may apply to the licensing of these operations or 
other operating requirements will likely be addressed in a separate 
rule making proceeding and any reporting, recordkeeping and other 
compliance requirements will be addressed therein.

Significant Alternatives to Proposed Rules Which Minimize Significant 
Economic Impact on Small Entities and Accomplish Stated Objectives

    28. No Petitions for Rulemaking were filed to initiate this 
proceeding and there are no comments in this proceeding that suggest 
alternatives to this proposed allocation and associated technical 
requirements. We request comment on alternatives that might minimize 
the amount of economic impact on small entities.

Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    29. None.

List of Subjects in 47 CFR Part 2

    Communications equipment, reporting and recordkeeping requirements.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 99-837 Filed 1-13-99; 8:45 am]
BILLING CODE 6712-01-U