[Federal Register Volume 64, Number 129 (Wednesday, July 7, 1999)]
[Proposed Rules]
[Pages 36642-36657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17143]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 27 and 73

[WT Docket No. 99-168; FCC 99-97]


Service Rules for the 746-764 and 776-794 MHz Bands and Revisions 
to the Commission's Rules Regarding Wireless Communications Service

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes new service rules for commercial 
licensing in the 746-764 and 776-794 MHz bands

[[Page 36643]]

that have been reallocated from use solely for the Broadcasting 
service. These proposed service rules include provisions for 
application licensing, technical and operating rules and competitive 
bidding. This action is another step in the Commission's program to 
implement sections of the Balanced Budget Act of 1997 which direct the 
Commission to complete reallocation of this spectrum by December 31, 
1997, and commence competitive bidding for the commercial licenses of 
the reallocated spectrum after January 1, 2001. This document contains 
proposed or modified information collections subject to the Paperwork 
Reduction Act of 1995 (PRA), Public Law 104-13. The general public and 
other Federal agencies are invited to comment on the proposed or 
modified information collections contained in this proceeding.

DATES: Comments are due on or before July 19, 1999 and reply comments 
are due on or before August 13, 1999. Written comments by the public 
and by other Government agencies on the proposed information 
collections are due September 7, 1999.

ADDRESSES: Federal Communications Commission, Office of the Secretary, 
445 12th Street, S.W., Washington, D.C. 20554. In addition to filing 
comments with the Secretary, a copy of any comments on the information 
collections contained in the NPRM should be submitted to Les Smith, 
Federal Communications Commission, Room 1-A804, 445 12th Street, S.W., 
Washington, D.C. 20554, or via the Internet to [email protected].

FOR FURTHER INFORMATION CONTACT: Legal Information: Stan Wiggins, 202-
418-1310. Technical Information: Ed Jacobs, 202-418-1310. For 
additional information concerning the information collections contained 
in the NPRM, contact Les Smith at 202-418-0217, or via the Internet at 
[email protected].

SUPPLEMENTARY INFORMATION: This is a synopsis of the NPRM in WT Docket 
No. 99-168, FCC 99-97, adopted May 13, 1999, and released June 3, 1999. 
The complete text of the NPRM is available for inspection and copying 
during normal business hours in the FCC Reference Information Center, 
Courtyard Level, 445 12th Street, S.W., Washington, D.C., and also may 
be purchased from the Commission's copy contractor, International 
Transcription Services (ITS, Inc.), (202) 857-3800, CY-B400, 445 12th 
Street, S.W., Washington, D.C. 20054.

Introduction; Background

    1. This Notice of Proposed Rulemaking (NPRM) proposes new service 
rules for commercial licensing in the 746-764 MHz and 776-794 MHz bands 
that have been reallocated from use solely for the Broadcasting 
service. These proposed service rules include provisions for 
application licensing, technical and operating rules, and competitive 
bidding. The revised spectrum allocation in the Reallocation Report and 
Order 1 provided for the potential provision of Fixed, 
Mobile, and Broadcasting services on these bands. This NPRM seeks 
comment on the degree of flexibility that should be afforded new 
licensees using this spectrum, and the technical and other service 
rules that should govern the range of services enabled. This NPRM also 
seeks comment on methods to assure continued protection of existing 
full service television stations that will continue to operate on these 
bands during the transition to digital television (DTV).2 
This NPRM is a further step in the Commission's proceeding to comply 
with section 337 of the Communications Act.3 That section 
directs the Commission to complete the reallocation of this spectrum by 
December 31, 1997, and authorizes competitive bidding for commercial 
licenses on the reallocated spectrum after January 1, 2001. The 
Balanced Budget Act also expanded the Commission's competitive bidding 
authority to comprise mutually exclusive broadcast licenses, and the 
Commission recently implemented that authority in the Competitive 
Bidding (Broadcast) Order.4
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    \1\ See 63 FR 0669, February 10, 1998.
    \2\ See Memorandum Opinion and Order, 63 FR 63798, November 17, 
1998.
    \3\ section 3004 of the Balanced Budget Act of 1997, which added 
47 U.S.C. 337(a) and 337(b).
    \4\ See First Report and Order, 63 FR 48615, September 11, 1998, 
recon., 64 FR 24523, May 7, 1999.
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Service Rules

A. In General

    1. Permitted Services.
    2. The NPRM first seeks comment on whether our service rules should 
permit a licensee to use the 746-764 MHz and 776-794 MHz spectrum bands 
for any use permitted within the United States Table of Frequency 
Allocations contained in part 2 of the Commission's Rules (i.e., Fixed, 
Mobile, and Broadcasting services),5 subject to 
international requirements and coordination.6
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    \5\ The United States Table of Frequency Allocations is at 47 
CFR 2.106. See generally 47 CFR part 2, Frequency Allocations and 
Ratio Treaty Matters; General Rules and Regulations. 00
    \6\ Section 303(y)(1) of the Communications Act, 47 U.S.C. 
303(y)(1), limits the Commission's authority to allocate spectrum so 
as to provide flexibility of use to situations in which ``such use 
is consistent with international agreements to which the United 
States is a party.''
    The NPRM uses the term ``sharing'' to refer to the use of 
spectrum bands by a variety of services, under licensing rules that 
accord each licensee exclusive use of specific spectrum blocks. The 
NPRM does not consider in this context the sharing of specific 
spectrum blocks.
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    3. The Commission's allocation and designation decisions retained 
Broadcast services in the Table of Allocations, and so preserved the 
potential for service rules that would enable the full range of 
commercial broadcast services to the public. The extent to which the 
potential flexibility established for these bands by revisions to the 
Table of Allocations will ultimately be implemented by the service 
rules will respect the requirements stated in section 303(y) of the 
Communications Act, that such flexibility must not establish harmful 
interference, or discourage investment and development of new 
technologies. In accord with past Commission practice, inclusion of 
specific services in the Table of Allocations does not necessarily 
entail that service rules will be drafted to accommodate each such 
service, or that even flexible service rules will enable provision of 
the full range of allocated services.
    4. The NPRM also states the Commission's continued interest in 
broader aspects of spectrum management. While the allocations involved 
here were specifically mandated by the Balanced Budget Act, commenters 
are encouraged to consider how innovative service rules developed for 
such a flexible use allocation might maximize the uses made of this 
spectrum. There is clear potential in this context for new technologies 
to affect the extent to which service rules effectively provide for 
flexible use. Thus, the NPRM seeks comment on how the Commission's 
rules might provide for such developments. Commenters who consider this 
issue should address what impact their suggested approaches would have 
on broadcasters also using the band, both during the transition to DTV 
and to the extent the service rules may provide for new broadcast 
services.
    5. Whether the service rules developed will provide for sharing 
between broadcast and fixed and mobile wireless services, including the 
prospect of audio, video, or data services that may not closely 
resemble existing broadcasting configurations, depends in part on the 
resolution of several issues

[[Page 36644]]

that are not raised by flexible use allocations of narrower scope. 
These issues include the managing of interference between technically 
dissimilar services (at least in the familiar configurations of 
broadcast and wireless service), and the development and application of 
regulatory mechanisms suited to the range of services on these bands. 
To the extent that commenters suggest that the technical service rules 
enable services that closely resemble existing broadcast services, we 
start from the presumption that such services would be fully subject to 
part 73 of our Rules. The Commission asks that commenters consider 
whether there are any reasons that particular elements of part 73 
should not similarly be applied to such services when provided on these 
spectrum blocks. Other prospective licensees might offer services that 
more closely resemble the existing fixed and mobile wireless services 
provided on other spectrum bands. As an initial matter the Commission 
would expect such services are more appropriately regulated by the 
framework of part 27.
    6. Another respect in which broadcast and non-broadcast services 
operate in different regulatory contexts are the distinctive approaches 
to accessibility. The NPRM asks whether and how these differing 
accessibility requirements should affect the development of service 
rules for these spectrum bands. Additionally, the NPRM seeks comment on 
the implications of the Commission's service rule proposals, including 
technical and regulatory aspects, for the implementation of third 
generation wireless technology in this spectrum.
    7. The full flexibility of use being considered for these bands may 
also require the Commission to develop auction procedures that 
recognize and reconcile the characteristic regulatory elements of 
broadcast and wireless licenses, and perhaps consider distinctive 
approaches.7 In developing service rules for the commercial 
spectrum involved here, and determining the extent to which they can or 
should accommodate both familiar broadcast services and innovative 
services that would be licensed under parts 73 and 27 of the 
Commission's Rules, we are required by section 303(y) of the 
Communications Act to find that such a flexible approach: (1) would not 
result in harmful interference among users, (2) would not deter 
investment in communications services and systems, or technology 
development, and that (3) the allocation would be in the public 
interest. The Commission recognizes that proposals involving such a 
range of services make it especially important that our consideration 
of proposed ``flexible use'' allocations, mandated by section 303(y) of 
the Act, examine the elements of that statutory review in light of the 
specific factual considerations raised by the scope of these proposals.
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    \7\ The procedures for broadcast auctions are set forth by 
public notice prior to the individual auction, 47 CFR 73.5001. 
General procedures for wireless auctions are specified in part 1 of 
the Commission's Rules, 47 CFR part 1.
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    8. In broad terms, the NPRM initially proposes to permit licensees 
to determine the services they will provide within their assigned 
spectrum and geographic areas, subject to the service rules, and to 
subject these licensees generally to part 27 of the Commission's Rules, 
which governs Wireless Communications Service.8 Exceptions 
to this approach, if any, would arise from modifications the Commission 
may adopt to reflect: (1) the particular circumstances of this 
spectrum; and (2) statutory and other public interest requirements, 
gathered in part 73 of our Rules, that govern broadcasting. Thus, the 
NPRM asks whether broadcast services on these bands, to whatever extent 
they are subject to part 73 in other respects, can or should be subject 
to the part 27 licensing framework to facilitate the administrative 
coordination of these varied uses. Commenters are also invited to 
address whether broadcast services, if provided in the context of 
spectrum blocks governed generally by part 27, should be subject to 
different rules than now apply under part 73 to broadcast 
licensees.9 Broadcast use of this spectrum in any case would 
necessarily be subject to broadcast-specific statutory provisions. The 
NPRM requests comment on the type of services that could be offered in 
this commercial spectrum, and on our proposal generally to subject the 
spectrum to part 27 and, when applicable, to other parts of the rules, 
including part 73. The Commission also seeks comment on alternative 
provisions that may minimize the economic impact of the proposals, if 
any, on small entities.
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    \8\ For wireless services, a part 27 licensee could also be 
subject to part 22 if providing public mobile services, to part 90 
if providing private land mobile services, and to part 101 if 
providing fixed microwave services. For broadcasting services, a 
part 27 licensee could be subject to part 73.
    \9\ See 47 CFR 73.1001 through 73.4280.
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    9. The NPRM seeks specific comment on whether this approach is 
consistent with the elements of section 303(y)(2) of the Communications 
Act. For example, section 303(y)(2)(B) of the Act addresses the 
possibility that too broad an approach to flexibility in spectrum use 
may have the undesired effect of deterring investments needed to 
provide communications services and develop new technologies on the 
newly allocated spectrum. The NPRM solicits comments from interested 
parties concerning what restrictions, if any, should be placed on 
licensee flexibility in order to ensure that the needed investments are 
made. Where commenters suggest that the Commission restrict how 
spectrum may be used by a licensee, the Commission is particularly 
interested in detailed quantitative analyses of the anticipated 
economic trade-offs between flexibility and investment that led to the 
proposed constraints. The NPRM also seeks specific comment on ways to 
ensure that the technical rules for the 746-764 MHz and 776-794 MHz 
bands satisfy the requirement of section 303(y)(2)(C), that flexible 
use allocations not result in harmful interference among users.
    10. Finally, the NPRM seeks comment on the extent to which, 
consistent with the statute, the spectrum bands involved here can and 
should be available for private mobile and private fixed radio 
services. Commenters in this proceeding who are interested in bidding 
on these bands in order to provide private mobile or private fixed 
services, functioning as a Band Manager or through some other 
mechanism, should address the range of issues raised by the Balanced 
Budget Notice (64 FR 23571, May 3, 1999) in this regard.
    11. The NPRM tentatively finds that making the spectrum available 
for flexible commercial use under part 27 of the rules is in the public 
interest because it will contribute to technological and service 
innovation, the creation of new jobs for the American workforce, the 
fostering of national economic growth, and the enhancement of 
opportunities for all Americans to utilize, and realize the benefits 
of, the national telecommunications infrastructure. The NPRM seeks 
comment on this tentative finding.
    12. The Commission seeks to develop service rules that are not 
based on a Commission prediction of how these bands will ultimately be 
used, but instead reflect a record that enables the Commission to 
establish maximum practicable flexibility. The Commission will 
determine whether implementing the full range of allocated services is 
practicable on the basis of the record developed with regard to both 
technical rules, and to the application of policies and rules that are 
governed by the classification of the service in legal and 
administrative terms.

[[Page 36645]]

2. Spectrum for Each License
    13. The NPRM requests comment on the appropriate amount of spectrum 
to be provided for each licensee in the two 18 megahertz spectrum 
blocks, and on the viability of licensees competing with existing fixed 
and mobile service providers. The NPRM further seeks comment on whether 
the spectrum should be licensed as one large block, or broken down into 
two or more bandwidths, and whether there should be a mixture of 
spectrum blocks.
    14. The NPRM also seeks comment on the minimum spectrum blocks 
needed to enable competitive commercial services. Spectrum blocks of 1 
or 2 megahertz may be sufficient to provide for paging and other 
messaging services, and the higher bound of our estimates of licensees 
affected is based on the pairs of 1 megahertz blocks as the minimum. 
Blocks of 6 or 9 megahertz may enable mobile voice service, analog or 
digital video services, or point-to-point microwave service. Existing 
analog and digital television broadcasters use 6 megahertz spectrum 
blocks, and the lower bound of our estimate of affected licensees is 
based on the use of 6 megahertz blocks as a minimum. Commenters should 
also consider the relationship between the amount of spectrum per 
license and the ability to coordinate operations with other licensees 
in this spectrum, including the protection of existing broadcast 
operations in this band during the transition to DTV.10
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    \10\ Commission records indicate that as of November 1998, there 
were 105 full power TV licensees and 1232 low power and translator 
TV licensees operating on these bands.
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    15. The Commission tentatively concludes that this spectrum should 
be licensed on a paired basis. While broadcasting would not require 
paired spectrum, it is essential that the spectrum be paired to enable 
a viable commercial mobile service. The separation of the 746-764 MHz 
and 776-794 MHz bands by 30 megahertz of spectrum is optimal for 
paired, two-way operations. The NPRM requests comment on whether the 
amount of spectrum for each license would affect the decision to 
license paired spectrum, and specifically whether a decision to license 
blocks large enough for conventional broadcast service should affect 
the decision to license paired spectrum. The NPRM particularly asks 
commenters to address how spectrum block issues relate to the specific 
findings required by review of flexible use allocations pursuant to 
section 303(y) of the Act. The NPRM thus requests comment on how the 
number of licensees and spectrum blocks established could affect the 
investment in and deployment of new services and technologies using 
these frequencies, and the extent to which new services offered in this 
spectrum would compete with other services. Whatever initial licensing 
approach is chosen, the Commission proposes to permit parties to bid 
for multiple licenses.
3. Size of Service Areas for Geographic-Area Licensing
    16. Part 27 spectrum is licensed based on one of two kinds of 
service areas. Spectrum in the C and D frequency blocks is licensed 
using the 12 Regional Economic Area Groupings (REAGs). Spectrum in the 
A and B frequency blocks is licensed using the 52 Major Economic Areas 
(MEAs). REAGs and MEAs are based on the 172 Economic Areas (EAs) 
defined by the U.S. Department of Commerce, as modified by the 
Commission. The Commission has, however, licensed other wireless 
services occupying spectrum near the newly allocated commercial 
spectrum using other service areas. The NPRM requests comment on the 
type of service area or areas that should be used to license the 746-
764 MHz and 776-794 MHz bands. (The Commission has used the Economic 
Areas in this summary to develop estimates of affected licensees, but 
has not specifically proposed any service area approach in the NPRM.)
    17. The NPRM also seeks comment on how the possible use of this 
spectrum for broadcasting might affect our decision on service areas 
generally, and specifically on how the Commission could apply the 
concept of a broadcast station's serving the needs and interests of its 
community of license to a part 27 service area, depending on our 
geographic area and spectrum block choices. The relation between the 
geographic service area and the size of spectrum blocks is especially 
germane to the sharing of these bands between Commercial Mobile Radio 
Service (CMRS) and conventional broadcast services, which operate using 
significantly different power levels. The NPRM seeks comment on how 
such sharing would affect the overall relation between service areas, 
spectrum channelization, and power levels, compared to service rules 
that would constrain or preclude broadcast use.
    18. The NPRM also seeks comment on procedures that would allow 
prospective bidders to bid on combinations or groups of licenses in a 
single bid, and to enter multiple alternative bids within a single 
bidding round, as well as alternatives that would rely on licensing by 
geographic area, by community of license, or by some combination of 
these approaches.

B. Licensing Rules

1. Regulatory Status
    19. As noted, the NPRM seeks comment on whether to apply the 
existing licensing framework for part 27 services to the 746-764 MHz 
and 776-794 MHz bands. The Communications Act applies requirements to 
broadcasters or common carriers that are not applied to other 
licensees. The licensing framework for part 27 permits applicants to 
request common carrier status as well as non-common carrier status for 
authorization in a single license, rather than require the applicant to 
choose between common carrier and non-common services, and the 
Commission proposes that licensees in these redesignated spectrum bands 
similarly be authorized to provide a variety or combination of fixed 
and mobile, common carrier and non-common carrier, and broadcast 
services. The Commission tentatively concludes that this approach, as 
applied to the range of fixed and mobile wireless services, is likely 
to achieve efficiencies in the licensing and administrative process. 
The possible further inclusion of broadcasting service appears more 
problematic in this regard, and the NPRM seeks comment on the effect 
that enabling such services would have on the licensing and 
administrative process. In order to fulfill our enforcement obligations 
and ensure compliance with the statutory requirements of Titles II and 
III of the Communications Act, the Commission proposes to require 
applicants to identify whether they seek to provide common carrier 
services, broadcast service, or other service as permitted by the final 
Rules in this proceeding. The NPRM additionally seeks comment on the 
need to modify any appropriate form(s) for an applicant seeking to 
provide broadcast service, either solely or in conjunction with other 
services under a single license.
    20. Under the existing part 27 framework, the Commission does not 
require applicants to describe the services they seek to provide beyond 
designating their regulatory status. The NPRM proposes that applicants 
and licensees in this 36 megahertz of commercial spectrum similarly be 
required only to indicate the regulatory status of any services they 
choose to provide. The NPRM also proposes that licensees must notify 
the Commission within 30 days of service changes that alter the 
regulatory status of their services. When the change results in the

[[Page 36646]]

discontinuance, reduction, or impairment of the existing service, a 
different approach may apply. The NPRM also seeks comment regarding 
whether the inclusion of broadcast services may sometimes require the 
Commission to modify this approach. Conventional broadcast licensees 
are subject to different ownership rules and attribution standards than 
wireless licensees.
2. Eligibility; Spectrum Aggregation
    21. Sections 27.12 and 27.302 of the Commission's Rules impose no 
restrictions on eligibility, other than the foreign ownership 
restrictions set forth in section 310 of the Communications Act. Thus, 
the NPRM proposes that there be no restrictions on eligibility for a 
license in the 746-764 MHz and 776-794 MHz bands. The NPRM seeks 
comment on whether opening this spectrum to as wide a range of 
applicants as possible will encourage entrepreneurial efforts to 
develop new technologies and services, while helping to ensure the most 
efficient use of this spectrum. Commenters also should address whether 
the Commission's proposed policy of universal eligibility should apply 
to broadcasting on these spectrum bands.11 The NPRM also 
asks whether there are any reasons not to apply part 73 multiple 
ownership rules to part 27 licensees providing conventional 
broadcasting services.
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    \11\ See, e.g., 47 CFR 73.3555. The Commission has underway a 
review of its broadcast ownership rules. See 1998 Biennial 
Regulatory Review--Review of the Commission's Broadcast Ownership 
Rules and Other Rules Adopted Pursuant to Section 202 of the 
Telecommunications Act of 1996, MM Docket No. 98-35, Notice of 
Inquiry, 63 FR 15353, March 31, 1998.
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    22. Another example of broadcast-specific eligibility issues 
involves character qualifications. While the character qualification 
standards applied to broadcasters have provided guidance in common 
carrier proceedings, they are not directly applicable to that context. 
The NPRM seeks comment on whether there is any reason that conventional 
broadcasters who share spectrum with Part 27 wireless services, 
including wireless common carrier offerings, should not be governed by 
the existing standards applied to part 73 licensees. The Commission 
also seeks comment on whether there is any reason the Commission cannot 
apply our current rules to decide whether an entity that has been 
disqualified from holding a conventional part 73 broadcasting license 
pursuant to the character qualification rules should be eligible to 
provide non-broadcasting services pursuant to a part 27 license.
    23. Currently, part 27 services do not count against the spectrum 
cap on CMRS spectrum licensees. The 746-764 MHz and 776-794 MHz bands 
may be used for mobile services that are comparable to the cellular, 
broadband Personal Communications Service (PCS), and Specialized Mobile 
Radio (SMR) spectrum for which the CMRS cap was devised. While the 
Commission does not propose a spectrum cap for part 27 services 
generally, the NPRM seeks comment on whether these commercial spectrum 
bands, if used to provide CMRS, should count against the 45 megahertz 
spectrum cap that applies to certain CMRS licensees. If the CMRS 
spectrum cap is applied to this spectrum, the NPRM seeks comment on 
whether the spectrum cap should be adjusted in any way. The NPRM also 
seeks comment on whether there should be any restriction on the amount 
of spectrum that any one licensee may obtain in the 746-764 MHz and 
776-794 MHz bands in the same licensed geographic service area. 
Commenters addressing this aggregation issue should consider the 
varying bandwidth requirements of the different types of services that 
could use the 36 megahertz of commercial spectrum.
3. Foreign Ownership Restrictions
    24. Sections 310(a) and 310(b) of the Communications Act (47 U.S.C. 
310(a) and (b)) impose foreign ownership and citizenship requirements 
that restrict the issuance of licenses to certain applicants. Section 
27.12 of the Commission's Rules,12 which implements section 
310 of the Act, would by its terms apply to applicants for licenses in 
the 746-764 MHz and 776-794 MHz bands. An applicant requesting 
authorization only for non-common carrier or non-broadcast services 
would be subject to section 310(a), but not to the additional 
prohibitions of section 310(b). An applicant requesting authorization 
for broadcast or common carrier services would be subject to both 
sections 310(a) and 310(b).
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    \12\ 47 CFR 27.12; see also 47 CFR 27.302.
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    25. The statutory foreign ownership restrictions will be applicable 
to the extent the restrictions apply to a particular service being 
offered in this commercial spectrum. In response to the World Trade 
Organization (WTO) Basic Telecommunications Agreement, the Commission 
recently liberalized its policy for applying its discretion with 
respect to foreign ownership of common carrier radio licensees under 
section 310(b)(4).13 The Commission now presumes that 
ownership by entities from countries that are WTO members serves the 
public interest. Ownership by entities from countries that are not WTO 
members continues to be subject to the ``effective competitive 
opportunities'' test established by the Commission.
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    \13\ The Commission's rules for broadcast licenses, which are 
not covered by the WTO Basic Telecommunications Agreement, were not 
amended.
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    26. In the filing of an application under the Multipoint 
Distribution Service (MDS), Satellite, and Local Multipoint 
Distribution Service (LMDS) rules, the Commission requires any 
applicant electing non-common carrier status to submit the same 
information that common carrier applicants submit to address the alien 
ownership restrictions under section 310(b) of the Act.14 
The NPRM proposes to follow the same approach in the case of applicants 
for licenses in the 746-764 MHz and 776-794 MHz spectrum. Broadcasters, 
common carriers, and non-common carriers would not be subject to varied 
reporting obligations, but would all be required to file changes in 
foreign ownership information to the extent required by part 27 of the 
Commission's Rules. By establishing parity in reporting obligations, 
however, the Commission would not establish a single substantive 
standard for compliance. The Commission does not and would not 
disqualify an applicant requesting authorization exclusively to provide 
non-common carrier and non-broadcast services from obtaining a license 
simply because its citizenship information would disqualify it from a 
common carrier or broadcast license. The NPRM requests comment on this 
proposal.
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    \14\ See 47 U.S.C. 310(b).
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4. Performance Requirements
    27. Section 27.14(a) of the Commission's Rules requires Wireless 
Communications Service (WCS) licensees to provide ``substantial 
service'' to their service area within 10 years of being licensed; a 
failure to meet this requirement results in forfeiture of the license 
and the licensee's ineligibility to regain it. The Commission has 
stated that the construction requirement provides licensees with the 
flexibility to offer the full range of services under the allocations 
table, and to accommodate new and innovative services. The Commission 
proposes generally to subject licensees in the 36 megahertz of 
commercial spectrum to the same standard, and we propose and seek 
comment on the following ``safe

[[Page 36647]]

harbors'' for the 746-764 MHz and 776-794 MHz bands: (1) For a licensee 
that chooses to offer fixed services or point-to-point services, the 
construction of four permanent links per one million people in its 
licensed service area at the 10-year renewal mark would constitute 
substantial service; (2) For a licensee that chooses to offer mobile 
services or point-to-multipoint services, a demonstration of coverage 
to 20 percent of the population of its licensed service area at the 10-
year renewal mark would constitute substantial service. The NPRM also 
seeks comment on the distinct issues raised by applying this proposal 
to potential broadcast use of the spectrum. Broadcast permittees 
operating pursuant to part 73 are required to construct their 
facilities within three years. The NPRM requests comment on whether 
there are any reasons not to apply the part 27 construction rules to 
broadcasters on these bands.
    28. The Commission tentatively concludes that the existing part 27 
build-out requirements applied to wireless licensees, and the part 73 
construction requirements applied to Broadcast permittees, fulfill the 
Commission's obligations under section 309(j)(4)(B) of the Act to 
establish performance requirements for licenses obtained by competitive 
bidding. The Commission also tentatively concludes that the auction 
rules that we propose to apply to these services, together with the 
service rules that we are proposing and our overall competition and 
universal service policies, constitute effective safeguards and 
performance requirements for licensing this spectrum. The Commission 
would reserve the right to review our construction requirements in the 
future if we receive complaints related to section 309(j)(4)(B), or if 
a reassessment is warranted because spectrum is being warehoused or 
otherwise is not being used despite demand. The Commission also will 
reserve the right to impose additional, more stringent construction 
requirements on licenses in the future in the event of actual 
anticompetitive or universal service problems. The NPRM solicits 
comment on these proposals and views regarding performance 
requirements.
5. Disaggregation and Partitioning of Licenses
    29. The NPRM next proposes to permit licensees in the 746-764 MHz 
and 776-794 MHz bands to partition their service areas and to 
disaggregate their spectrum. The Commission tentatively concludes that 
geographic partitioning and spectrum disaggregation can result in 
efficient spectrum use and economic opportunity for a wide variety of 
applicants, including small business, rural telephone, minority-owned, 
and women-owned applicants, as required by section 309(j)(4)(C) of the 
Communications Act. The Commission also tentatively concludes that this 
proposed approach will provide a means to overcome entry barriers 
through the creation of smaller licenses that require less capital, 
thereby facilitating greater participation by rural telephone companies 
and other smaller entities, many of which are owned by minorities and 
women.
    30. Section 27.15 of the Commission's Rules provides that licensees 
may apply to partition their licensed geographic service areas or 
disaggregate their licensed spectrum at any time following the grant of 
their licenses. The part 27 rules permit: (1) geographic partitioning 
of any service area defined by the partitioner and partitionee, (2) 
spectrum disaggregation without restriction on the amount of spectrum 
to be disaggregated, and (3) combined partitioning and disaggregation. 
The NPRM requests comment on the Commission's proposal that licensees 
in the 746-764 MHz and 776-794 MHz bands be similarly eligible to 
partition service areas and disaggregate spectrum.
    31. Pursuant to Sec. 27.15, the partitioning licensee must include 
with its request a description of the partitioned service area and a 
calculation of the population of the licensed geographic service area, 
and the partitioned service area. Section 27.15 also contains 
provisions against unjust enrichment. The NPRM proposes to adopt these 
provisions, as well as the remaining provisions governing partitioning 
and disaggregation in Sec. 27.15, for licensees in the 746-764 MHz and 
776-794 MHz bands.
    32. The NPRM proposes to allow parties to partitioning agreements 
to choose between two options for satisfying the construction 
requirements. Under the first option, the partitioner and partitionee 
would each certify that it will independently satisfy the substantial 
service requirement for its respective partitioned area. If a licensee 
fails to meet its substantial service requirement during the relevant 
license term, the non-performing licensee's authorization would be 
subject to cancellation at the end of the license term. Under the 
second option, the partitioner certifies that it has met or will meet 
the substantial service requirement for the entire market. If the 
partitioner fails to meet the substantial service standard during the 
relevant license term, however, only its license would be subject to 
cancellation at the end of the license term. The partitionee's license 
would not be affected by that failure.
    33. The NPRM similarly proposes to allow parties to disaggregation 
agreements to choose between two options for satisfying the 
construction requirements. Under the first option, the disaggregator 
and disaggregatee would certify that they each will share 
responsibility for meeting the substantial service requirement for the 
geographic service area. If parties choose this option, both parties' 
performance will be evaluated at the end of the relevant license term 
and both licenses could be subject to cancellation. The second option 
would allow the parties to agree that either the disaggregator or the 
disaggregatee would be responsible for meeting the substantial service 
requirement for the geographic service area. If parties choose this 
option, and the party responsible for meeting the construction 
requirement fails to do so, only the license of the non-performing 
party would be subject to cancellation.
6. License Term; Renewal Expectancy
    34. Part 27 of the Commission's Rules limits license terms to 10 
years from the date of original issuance or renewal. Section 27.14(c) 
establishes a right to a renewal expectancy. The Communications Act, 
however, states that the license term for a broadcast station shall not 
exceed eight years, and specifies renewal criteria for broadcast 
stations.15 The NPRM seeks comment on the appropriate 
license term for all licensees in the proposed 746-764 MHz and 776-794 
MHz bands, including those potentially offering broadcast service. The 
NPRM further seeks comment on whether it would be appropriate to have 
different license terms, depending on the type of service offered by 
the licensee, and on the distinctions between the statutory and part 73 
renewal criteria for conventional broadcast stations and our part 27 
renewal expectancy criteria for, e.g., datacasting and other wireless 
services. The NPRM additionally seeks comment on how the Commission 
should administer such an approach, particularly if licensees provide 
more than one service in their service area, or decide to change the 
type of service they plan to offer.
---------------------------------------------------------------------------

    \15\ 47 U.S.C. 307(a).
---------------------------------------------------------------------------

    35. The NPRM proposes, in the event that a license is partitioned 
or disaggregated, that any partitionee or disaggregatee be authorized 
to hold its

[[Page 36648]]

license for the remainder of the original licensee's term, and that the 
partitionee or disaggregatee may obtain a renewal expectancy on the 
same basis as other part 27 licensees (or, if subject to part 73, on 
the same basis as other part 73 licensees). The NPRM further proposes 
that all licensees meeting the substantial service requirement will be 
deemed to have met this facet of the renewal expectancy requirement 
regardless of which of the part 27 construction options the licensees 
chose. The Commission tentatively concludes that this approach is 
appropriate because a licensee, through partitioning, should not be 
able to confer greater rights than it was awarded under the terms of 
its license grant. The NPRM also seeks comment on whether a non-
broadcast renewal applicant involved in a comparative renewal 
proceeding should include at a minimum the showing in Sec. 27.14(c) of 
the Commission's Rules to claim a renewal expectancy, and similarly, 
what showing a broadcast renewal applicant should include to claim the 
renewal expectancy established by section 309(k) of the Act.
7. Public Notice
    36. Sections 309(b) and 309(d) of the Communications Act require 
public notice for initial applications and substantial amendments filed 
by broadcasters or radio common carriers. These requirements state that 
no such application shall be granted earlier than 30 days following the 
issuance of public notice by the Commission, and that the Commission 
may not require petitions to deny such applications to be filed earlier 
than 30 days following the public notice. The same provision also 
grants the Commission the authority to impose public notice 
requirements for other licenses, even though public notice is not 
required by the statute. However, the administrative procedures for 
spectrum auctions adopted by section 3008 of the Balanced Budget Act of 
1997 permit the Commission to shorten notice periods in the auction 
context to a five-day petition to deny period and a seven-day public 
notice period, notwithstanding the provisions of section 309(b) of the 
Communications Act.16 The Commission tentatively concludes 
that services in the 746-764 MHz and 776-794 MHz spectrum will be 
auctionable services, so that the seven-day public notice period is 
applicable. We note, however, that in the Part 1 Second Further Notice 
the Commission has sought comment on whether longer periods should be 
generally applicable for some services.17
---------------------------------------------------------------------------

    \16\ 47 U.S.C. 309(j) nt 3.
    \17\ 63 FR 770, January 7, 1998.
---------------------------------------------------------------------------

    37. In light of the potential for sharing of this spectrum between 
broadcast and wireless services, and the differences between their 
regulatory requirements, the NPRM seeks comment on whether the 
Commisison should exercise our statutory discretion to require a 
minimum period of 15 days for public notice of applications of wireless 
common carriers and broadcast stations, in instances where the 
Commission's Rules establish a notice requirement, and a minimum period 
of 10 days for the filing of petitions to deny the applications of 
wireless common carriers and broadcast stations. Commenters should 
address whether imposing a 15-day notice requirement would be an undue 
burden on such applicants, and whether it would be administratively 
useful by enabling the Commisison to ensure that any applicant filing 
for both common carrier and non-common carrier authorizations in a 
single license is in compliance with (1) the licensing requirements for 
common carriers and broadcasters established in Title III of the 
Communications Act; and (2) any related requirements the Commission may 
adopt. Commenters also should address whether the Commission should 
allow all licensees to make subsequent status changes under reduced 
notification requirements.

C. Operating Rules

    38. The NPRM proposes to subject licensees in the 746-764 MHz and 
776-794 MHz bands to the part 27 rules that govern operations, except 
for modifications that the Commission may adopt for this spectrum as a 
result of this proceeding. The NPRM seeks comment generally on the 
applicability of these rules to this spectrum. Additionally, the NPRM 
seeks comment on whether any operating rules contained in other parts 
of the Commission's Rules should be adopted for the 746-764 MHz and 
776-794 MHz bands. The NPRM further asks commenters to suggest any 
alternatives to such regulations governing a licensee's operations in 
order to minimize the potential significant economic impact, if any, 
from such rules on small entities.
1. Applicability of General Common Carrier Obligations
    39. Title II of the Communications Act imposes a variety of 
obligations on the operations of common carriers that are not otherwise 
imposed on wireless communications services. There are a number of 
statutory operational requirements that apply generally to common 
carriers concerning the filing of tariffs, maintaining of records, 
liabilities, and discontinuance of service, among others. The 
Commission has previously forborne from applying many of those 
requirements in certain situations, and section 10 of the 
Communications Act (47 U.S.C. 160) directs the Commission to forbear 
from additional provisions of the Communications Act when specific 
criteria are satisfied.
    40. The NPRM thus seeks comment in this context on whether the 
Commission should exercise our authority under section 10 of the Act to 
forbear from applying to non-CMRS licensees of this spectrum the 
specific Title II requirements that the Commission previously has 
determined to forbear from applying to CMRS licensees. Specifically, 
the NPRM seeks comment on application of each of the three elements of 
the forbearance standards specified by section 10 of the Act, in the 
context of services in the 746-764 MHz and 776-794 MHz bands. Under the 
first two parts of the test, the NPRM requests comment on the 
definition of ``consumer,'' what information the Commission should 
consider when performing these evaluations, and examples of applying 
these tests in order to evaluate whether forbearance would be 
appropriate. With respect to the third condition, the NPRM seeks 
comment on the appropriate market that would apply to fixed, common 
carrier licensees in the 746-764 MHz and 776-794 MHz bands. The NPRM 
notes that the Commission has not forborne from regulation of fixed 
wireless services in service rule proceedings for the 24, 28, and 39 
GHz bands. The NPRM therefore also asks commenters to address how, if 
at all, that should affect the Commission's forbearance decisions in 
this proceeding.
    41. Because it may take longer for the Commission to conduct this 
forbearance analysis than to adopt service rules for the 746-764 MHz 
and 776-794 MHz bands, the NPRM proposes during the interim: (1) to 
adopt a discontinuance provision that is consistent with the common 
carrier obligations set forth in subpart E of part 1 and in part 61 
through part 64 of the Commission's Rules; and (2) to apply other parts 
of the Commission's Rules to ensure compliance of fixed common carriers 
with Title II of the Communications Act.
    42. Section 214(a) of the Communications Act requires that no 
common carrier may discontinue, reduce, or impair service without

[[Page 36649]]

Commission approval. The NPRM proposes that if a fixed, common carrier 
part 27 licensee voluntarily discontinues, reduces, or impairs service 
to a community or part of a community, it must obtain prior 
authorization as provided under Sec. 63.71 of the Commission's Rules, 
but an application would be granted within 30 days after filing if no 
objections were received. The NPRM additionally proposes that if a non-
common carrier part 27 licensee voluntarily discontinues, reduces, or 
impairs service to a community or part of a community, it must give 
written notice to the Commission within seven days. The NPRM also 
proposes, however, that neither a fixed common carrier, nor non-common 
carrier part 27 licensee, need surrender its license for cancellation 
if discontinuance is a result of a change in status from common carrier 
to non-common carrier or the reverse.
    43. The NPRM further proposes that if the service provided by a 
fixed common carrier part 27 licensee is involuntarily discontinued, 
reduced, or impaired for a period exceeding 48 hours, the licensee must 
promptly notify the Commission, in writing, as to the reasons for the 
discontinuance, reduction, or impairment of service, including a 
statement indicating when normal service is to be resumed. The NPRM 
proposes that when normal service is resumed, the licensee must 
promptly notify the Commission. The NPRM seeks comment on these 
proposals.
    44. Section 312(g) of the Communications Act provides that the 
license of any broadcasting station that fails to transmit broadcast 
signals for any consecutive 12-month period expires as a matter of law 
at the end of that period. In addition, Sec. 3.1750 of the Commission's 
Rules states that a licensee of a broadcast station shall notify the 
Commission of permanent discontinuance of operation at least two days 
before operation is discontinued. The NPRM asks whether any 
considerations may suggest that the Commission should adopt different 
provisions for broadcast services provided over this spectrum under 
part 27.
2. Equal Employment Opportunity
    45. Part 27 does not include an explicit Equal Employment 
Opportunity (EEO) provision. Nor do parts 24 (PCS) or 26 (General 
Wireless Communications Service). The NPRM notes that there are 
specific EEO provisions for fixed service providers in parts 21 and 
101, including both common carrier and non-common carrier LMDS 
licensees; 18 and for common carrier mobile service 
providers in parts 22 and 90, though these latter provisions do not 
apply to PMRS providers because they are not common carriers. In 
addition, part 25 contains EEO rules for entities that use an owned or 
leased fixed satellite service facility to provide more than one 
channel of video programming directly to the public,19 and 
part 73 contains rules for broadcasters.20
---------------------------------------------------------------------------

    \18\ See, e.g., 47 CFR 101.311.
    \19\ 47 CFR 25.601.
    \20\ Section 73.2080 of the Commission's Rules was struck down 
as unconstitutional as respects the outreach portions of the 
Commission's EEO program requirements for broadcast stations, and 
remanded to the Commission for a determination whether the non-
discrimination rule is within its statutory authority. See Lutheran 
Church-Missouri Synod v. FCC, Case No. 97-1116, 141 F3rd 344, reh'g 
denied, 154 F.3d 487 (D.C. Cir 1998).
---------------------------------------------------------------------------

    46. The Commission has initiated a rulemaking on our part 73 EEO 
rules,21 and in the present proceeding, seeks comment on 
whether there are any reasons not to apply part 73 EEO rules to 
conventional broadcasters operating in these spectrum bands and 
licensed under part 27. As to non-broadcast services on these bands, 
the NPRM seeks comment on whether the Commission should include a 
separate EEO provision in part 27 and, if so, which of the Commission's 
EEO rules we should adopt. Commenters should address the advisability 
of having different EEO requirements depending on the service a 
licensee provides. Commenters who support the adoption of EEO 
requirements should comment on what statutory authority should be 
invoked to support these requirements and how these rules should be 
tailored.
---------------------------------------------------------------------------

    \21\ Review of the Commission's Broadcast and Cable Equal 
Employment Opportunity Rules and Policies, MM Docket No. 98-204, and 
Termination of the EEO Stream-lining Proceeding, MM Docket No. 96-
16, Notice of Proposed Rulemaking, 63 FR 66104, December 1, 1998.
---------------------------------------------------------------------------

D. Technical Rules

    47. The general provisions of part 27 include rules related to 
equipment authorization, frequency stability, antenna structures and 
air navigation, international coordination, environmental requirements, 
quiet zones, and disturbance of AM broadcast antenna patterns. The NPRM 
seeks comment on applying these rules to the spectrum that is the 
subject of this NPRM, and specifically on any rules that would be 
affected by the Commission's proposal to apply elements of the part 27 
framework, whether separately or in conjunction with part 73 
requirements, to conventional broadcast services. The NPRM also seeks 
comment on proposals to adopt the rules concerning in-band interference 
control, out-of-band and spurious emission limits, special 
considerations for use of channels 66 and 67, and Radiofrequency (RF) 
safety requirements. The NPRM proposes that all of these technical 
rules would apply to all licensees in the 746-764 MHz and 776-794 MHz 
bands, including licensees who acquire their licenses through 
partitioning or disaggregation.
1. In-Band Interference Control
    48. The Commission does not have reliable information at this time 
on the technical parameters for services that will be provided in the 
746-764 MHz and 776-794 MHz bands. Our allocation and designation 
decision permits the range of uses in the Allocation Table, and we also 
cannot be certain what wireless services will be operating in adjacent 
spectrum. A broad range of technologies may share this spectrum, and 
the nature of the services and technologies can affect the potential 
for interference between licensees using the same spectrum in adjacent 
service areas. The Commission is particularly interested in potential 
interference issues should the range of uses extend to full power 
broadcast service.
    49. While the Commission has considered a range of approaches to 
managing interference in other service rule proceedings, these spectrum 
bands present an additional consideration. Section 337(d)(1) requires 
the Commission to establish ``interference limits at the boundaries of 
the spectrum block and service area.'' One possible interpretation of 
this provision is that the Commission is directed to adopt field 
strength limits, or some similarly generic requirement, even if it 
considers that a coordination approach establishes sufficient, and more 
flexible, protection against interference.
    50. The Commission tentatively concludes that either a coordination 
or field strength method, when properly applied, can provide a 
satisfactory means of controlling harmful interference or determining 
the interaction between systems, although there may be reasons to 
prefer one method over the other in the 746-764 MHz and 776-794 MHz 
bands. Even with a boundary limit, some degree of coordination and 
joint planning between bordering licensees appears likely to be needed 
to ensure efficient use across the boundary.
    51. Parties are therefore asked to provide their analysis of the 
advantages and disadvantages of both approaches, or approaches that 
combine a boundary limit and a coordination procedure.

[[Page 36650]]

Comments should address the advantages of different approaches in 
managing the electromagnetic environment at geographic boundaries in 
the 746-764 MHz and 776-794 MHz bands, the kinds of incentives each may 
create for undesirable strategic or anti-competitive behavior, and the 
effects on licensee costs.
    52. The NPRM also seeks comment regarding whether to permit 
licensees in adjacent service areas to coordinate their operations and 
agree to an alternative field strength along their shared border. The 
NPRM invites comment on this approach to control of interference in the 
context of the 746-764 MHz and 776-794 MHz bands, both generally and if 
used in conjunction with power flux density or field strength 
standards. If commenters suggest that power flux densities or field 
strength standards should be established as interference limits, in 
conjunction with a coordination process, they should propose specific 
values for such limits. Commenters should also address any special 
considerations that might be appropriate in an environment where 
disparate services might be using the same spectrum in adjacent service 
areas.
    53. Regarding whether a general coordination approach should be 
used, comments are invited on specific aspects of procedures. While 
Sec. 101.103 of the Commission's Rules can serve as a useful framework 
for coordination in the 746-764 MHz and 776-794 MHz bands, our 
objective is to ensure that licensees receive protection from harmful 
interference with the minimum regulation necessary. If a general 
coordination approach is adopted, the Commission tentatively concludes 
that the coordination concepts of Sec. 101.103 generally should be 
applied to licensees in the 746-764 MHz and 776-794 MHz bands and 
should be incorporated into part 27 of the Rules for these bands. The 
NPRM seeks comment on the best way to effect this incorporation, 
including comment on which provisions of Sec. 101.103 may be 
appropriate for incorporation into part 27. For purposes of the 
Commission's considering a coordination approach for the 746-764 MHz 
and 776-794 MHz bands, the NPRM seeks comment on what the appropriate 
distance should be to trigger this coordination, and whether there 
should be any other criteria, in addition to distance to the service 
area boundary, that would trigger a need to coordinate.
    54. The NPRM seeks comment on what, if any, limits for equivalent 
isotopically radiated power (EIRP) are necessary or appropriate under 
either a coordination or field strength limit approach. Transmitters 
used in the private land mobile service, cellular radio service, and 
fixed microwave services typically employ substantially different 
output powers. The substantial differences between these services, 
however, are minor in comparison to the output powers of full power 
broadcast services. Accordingly, if commenters believe that power 
limits are necessary, they should comment as to what those limits 
should be and the basis for the suggested limits. The NPRM also 
solicits views as to whether the Commission should establish limits on 
output power for all transmitters, or just mobile equipment.
    55. Finally, Sec. 27.64 of the Commission's Rules states generally 
that part 27 stations operating in full accordance with applicable 
Commission rules and the terms and conditions of their authorizations 
are normally considered to be non-interfering, and provides for 
Commission action, after notice and hearing, to require modifications 
to eliminate significant interference. In view of the variety of 
services that might be provided by part 27 licensees on these bands, 
the NPRM solicits comment on whether the Commission should apply this 
rule to these spectrum bands. The NPRM also seeks comment regarding 
whether interference protection can be guaranteed and whether 
Sec. 27.64 of the Rules, if retained, should be changed to direct 
adjacent service area licensees to cooperate to eliminate or ameliorate 
interference. The Commission also seeks comment on whether the 
Commission should apply any changes with respect to Sec. 27.64 to the 
2.3 GHz band.
2. Out-of-Band and Spurious Emission Limits
    56. Generally, different types of technical parameters would be 
used to limit out-of-band and spurious emissions to ensure interference 
protection of services outside the licensee's assigned spectrum, 
depending on whether the system involves fixed, mobile, or other 
communications. Because the Commission may permit licensees in the 746-
764 MHz and 776-794 MHz bands to use the spectrum for the various 
services in the Table of Allocations, it would appear we should develop 
technical operating parameters that can accommodate the several types 
of communications.
    57. In addition to the characteristics of different technical 
approaches, section 337(d)(4) of the Act emphasizes the importance of 
avoiding harmful interference from television broadcasters to public 
safety licensees in adjacent bands. Section 337(d)(4) refers explicitly 
to the spectrum bands reallocated and reserved for public safety 
services, and we have already adopted service rules for the public 
safety bands. The potential for new broadcasting services on the 
commercial 746-764 MHz and 776-794 MHz bands, however, raises the 
further issue of whether a more stringent approach to interference may 
be required on the commercial bands, to ensure that public safety 
licensees in adjacent bands do not experience harmful interference. The 
NPRM therefore seeks comment on the relation of section 337(d)(4) to 
protection of public safety licensees from interference caused by 
broadcast services that may be permitted to operate on the 36 megahertz 
of commercial spectrum.
    58. The NPRM proposes to require licensees in the proposed 
commercial spectrum to attenuate the power below the transmitter power 
(P) by at least 43 + 10 log10(P) watts or 80 decibels, 
whichever is less, for any emission on all frequencies outside the 
licensee's authorized spectrum. To implement sharing between 
conventional broadcast and other commercial services, different 
interference limits may be indicated. The NPRM requests comment on this 
proposal and any other emission limits that commenters believe are 
appropriate.
3. RF Safety
    59. Section 27.52 of the Commission's Rules subjects licensees and 
manufacturers to the RF radiation exposure requirements specified in 
Secs. 1.1307(b), 2.1091, and 2.1093 of the Commission's Rules, which 
list the services and devices for which an environmental evaluation 
must be performed. Routine environmental evaluations for RF exposure 
are required by applicants desiring to use the following types of 
transmitters: (1) fixed operations, including base stations and 
radiolocation transmitters, when the effective radiated power (ERP) is 
greater than 1,000 watts; (2) all portable devices; and (3) mobile 
devices, if the ERP of the station, in its normal configuration, will 
be 1.5 watts or greater.
    60. With regard to RF safety requirements, the NPRM proposes to 
treat services and devices in the 746-764 MHz and 776-794 MHz bands in 
a comparable manner to other services and devices that have similar 
operating characteristics. The Commission tentatively concludes that 
the requirements in Sec. 27.52, adopted for licensees in the 2.3 GHz 
band, will apply to the same extent to licensees in the 746-764 MHz and 
776-794 MHz bands. Guidance on acceptable methods

[[Page 36651]]

of evaluating compliance with the Commission's exposure limits is 
contained in OET Bulletin No. 65.22
---------------------------------------------------------------------------

    \22\ OET Bulletin No. 65 (Edition 97-01) was issued on August 
25, 1997. It is available for downloading at the FCC Web Site: 
www.fcc.gov/oet/rfsafety. Copies of OET Bulletin No. 65 also may be 
obtained by calling the FCC RF Safety Line at (202) 418-2464.
---------------------------------------------------------------------------

    61. The NPRM proposed to adopt the 1,000 watts ERP threshold for 
operation in the 746-764 MHz and 776-794 MHz bands to recognize the 
flexibility with respect to use, power, location, and other factors 
that will presumably be accorded licensees operating in these bands. 
The NPRM also proposed to modify Secs. 1.1307(b), 2.1091, and 2.1093 of 
the Commission's Rules to include services and devices applicable to 
the 746-764 MHz and 776-794 MHz bands. The NPRM invites comment on 
these proposals and any alternatives.
4. Special Considerations for Use of Channels 65, 66 and 67
    62. In the Public Safety Spectrum Second Notice on the use of 
channels 63, 64, 68, and 69 by Public Safety Services,23 the 
Commission sought comment on the potential for interference to GLONASS 
24 and GPS 25 satellites from public safety 
systems operating in the 794-806 MHz band (TV channels 68-69). In the 
present context, as with public safety systems, the second harmonic 
transmissions of commercial services operating on TV channels 65-67 
fall within the bandwidth identified by NTIA as being used by the GPS 
(1563.42-1587.42 MHz). Therefore, the use of the 776-794 MHz band by 
commercial services raises many of the same concerns. NTIA recommends 
that stringent standards be adopted to ensure that equipment operating 
in these bands does not cause radio frequency interference to the 
Global Navigation Satellite System (GNSS) when used for precision 
approach and landing. The Commission recognizes that this issue will be 
of critical importance to both navigation and commercial interests, and 
therefore we desire to obtain as complete a record as possible before 
making a decision. The Commission believes that additional information 
is needed before we arrive at a final decision with respect to this 
matter.
---------------------------------------------------------------------------

    \23\ Second Notice of Proposed Rulemaking, in WT Docket No. 96-
86, 62 FR 60199, November 7, 1997 (Public Safety Spectrum Second 
Notice).
    \24\ GLONASS is the Russian Federation Global Orbiting 
Navigation Satellite System which will use the 1598-1605 MHz portion 
of the Radionavigation-Satellite Service (space-to-Earth) allocation 
at 1559-1610 MHz, when the GLONASS system reaches its final 
frequency configuration after 2005.
    \25\ GPS (Global Positioning System) is also in operation, and 
it will be the United States component of the Global Navigation 
Satellite System (GNSS). GPS utilizes the lower portion of the 
Radionavigation-Satellite Service (space-to-Earth) allocation from 
1559-1610 MHz on a primary basis, and is maintained by the United 
States Department of Defense.
---------------------------------------------------------------------------

    63. Of particular concern is the impact of imposing the standards 
recommended by NTIA on the design of commercial equipment. NTIA 
specifically advocates that out-of-band emissions be limited to -70 
dBW/MHz equivalent isotropically radiated power (EIRP) for wideband 
emissions, and -80 dBW/700 Hz EIRP for narrowband emissions, and that 
these limits be applied to all spurious emissions, including second 
harmonics in the 1559-1610 MHz range. These limits are based on 
international recommendations by RTCA and ETSI specifically for mobile 
earth terminals in the Mobile Satellite Service (MSS). Full power 
broadcast use of this spectrum could pose additional difficulties for 
the GNSS system. Because conventional full power broadcast stations 
would operate at power levels several orders of magnitude larger than 
those used by commercial fixed and mobile stations, additional 
attenuation of out-of-band emissions may be required to protect the 
GNSS systems. NTIA has recommended, in this case, that an emission 
limit of -110 dB below the average transmitter power should be included 
as the proposed unwanted emission limit, including harmonics, for DTV 
transmitters operating in the 746-764 MHz and 776-794 MHz bands. NTIA 
notes that the current DTV mask requires that emissions, including 
harmonics that are more than 6 MHz from the channel edge, must be 
attenuated by this amount. It believes that this value is consistent 
with the current harmonic suppression levels that can be achieved by 
television transmitters, and will protect GNSS precision approach 
landing operations.
    64. The Commission is committed to ensuring that the GNSS is 
protected adequately against interference. We note that the standard 
recommended by NTIA is necessary only to protect the GNSS band at 1559-
1605 MHz. Based on the information before us at this time, we 
tentatively propose to adopt the NTIA recommended emissions limits, but 
to apply them only to emissions that fall within the GNSS band. Outside 
the 1559-1605 MHz GNSS band, we propose that the standard addressed 
earlier in the section on out-of-band spurious emissions (i.e., 43 + 10 
log P) would apply. The Commission believes that it is imperative that 
all parties fully understand the need for and ramifications of the NTIA 
proposed standard on use of the 700 MHz band for commercial wireless 
services. Therefore, the NPRM requests comment on the standard 
recommended by NTIA to protect GNSS operations. The NPRM also invites 
comment as to whether extenuating conditions such as low antenna 
height, propagation losses, body suppression of signals, and wall 
attenuation should be taken into account in calculating the out-of-band 
emission requirements. In addition, the Commission is interested in 
obtaining a better understanding of the levels of radio energy that 
currently exist in the GNSS spectrum as a result of spurious emissions 
from other communications systems and electronic equipment.
    65. The Commission observes that stringent out-of-band emissions 
limits are generally more difficult to meet for mobile and hand-held 
transmitters than for base and control stations or for fixed service 
stations. The standard recommended by NTIA would require approximately 
85-90 dB suppression for typical full-power mobile equipment, and 
approximately 75-80 dB for handhelds and portables.26 The 
NPRM expresses concern about whether the proposed emissions standard 
would severely curtail the availability of the 36 MHz of spectrum 
designated by Congress for commercial use, and requests factual data 
and technical information as to the impact this proposal may have on 
the use of the 700 MHz band for commercial wireless services. The NPRM 
also seeks information on how the proposed emmissions standard may 
affect the equipment cost, size, weight and battery life of handheld or 
portable equipment. Global Mobile Personal Communications via Satellite 
(GMPCS) terminals have been proposed to meet the same standard proposed 
in the NPRM. The NPRM invites comment as to whether it is feasible for 
commercial fixed and mobile equipment to meet the same standards as 
these commercial mobile satellite systems. The NPRM solicits 
suggestions as to any and all alternative approaches or measures that 
the Commission can take to alleviate the impact of the proposed 
standard.
---------------------------------------------------------------------------

    \26\ For the purposes of the GLONASS standard, the Commission 
has assumed the narrowband limit of -80 dBW/700 Hz would be 
sufficient for commercial services bandwidths of up to 150 kHz.
---------------------------------------------------------------------------

E. Competitive Bidding

1. Statutory Requirements
    66. Section 337 of the Communications Act requires that the 
licenses for this proposed commercial spectrum be granted through

[[Page 36652]]

competitive bidding. Section 337(a)(2) directs how the commercial 
segment of the spectrum between 746 megahertz and 806 megahertz is to 
be assigned: ``6 megahertz of that spectrum for commercial use [is] to 
be assigned by competitive bidding pursuant to section 309(j).'' 
Section 337(b)(2) further directs the Commission to ``commence 
competitive bidding for the commercial licenses created pursuant to 
subsection (a) after January 1, 2001.'' The proposed commercial 
spectrum therefore is not to be licensed for public safety radio 
services, which are excluded from spectrum auction authority by section 
3002 of the Communications Act.
    67. Although this spectrum is dedicated by statute for commercial 
rather than public safety licenses, the issue arises whether public 
safety entities might successfully bid for and be licensed to use the 
spectrum. The Commission is concerned that the exclusion from our 
statutory auction authority might: (1) preclude us from licensing a 
public safety entity that participated in an auction of commercial 
spectrum; or (2) nullify or otherwise adversely affect our authority to 
license the spectrum involved through competitive bidding, if public 
safety entities participate in such an auction.
    68. The Commission has not previously addressed the issue whether 
public safety entities are prohibited from participation as bidders in 
an auction process. The Commission believes that such participation, 
subject to the same bidding and service rules applicable to commercial 
applicants, cannot compromise the Commission's auction authority where, 
as here, that authority has been directly conferred by statute. We are 
considering in a separate proceeding the broader issue of exemption 
from our general auction authority of some public safety services. In 
light of the importance attached by the Congress to ensuring the 
availability of reallocated spectrum to public safety uses, however, 
the Commission believes these commercial bands should be open to 
application by any public safety entities that are qualified and 
prepared to bid under the same rules applied to commercial applicants. 
The NPRM therefore requests comment on what effect the changes in 
Commission auction authority, made by section 3002 of the 
Communications Act have on: (a) the possible participation of public 
safety entities in an auction of commercial spectrum, and on (b) their 
eligibility to obtain a license through the subsequent acquisition of 
spectrum initially assigned by auction.
    69. The Communications Act (at 47 U.S.C. 309(j)(3)) also directs 
the Commission to provide for the ``design and conduct (for purposes of 
testing) of competitive bidding using a contingent combinatorial 
bidding system that permits prospective bidders to bid on combinations 
or groups of licenses in a single bid and to enter multiple alternative 
bids within a single bidding round.'' The Commission has contracted for 
the development of such procedures. The NPRM seeks comment on whether 
the auction of these spectrum bands, especially if our service rules 
provide for broadcast services, may present a suitable context for 
combinatorial procedures. Commenters should consider: (a) whether, 
absent the application of combinatorial rules, the existing 
standardized auction rules in Part 1 are adequate for the juxtaposition 
of broadcast and wireless bidding entities; or (b) whether 
modifications of standardized Part 1 auction rules, to facilitate 
participation by entities interested in providing broadcast service, 
are desirable. The Commission is especially interested in comment on 
how, absent combinatorial rules, our auction methodology should 
recognize the divergence between geographic licensing applied to 
wireless spectrum bands, and the focus on communities of license in the 
assignment of broadcast spectrum.
2. Incorporation by Reference of Part 1 Standardized Auction Rules
    70. The NPRM proposes to conduct the auction for initial licenses 
in the 746-764 MHz and 776-794 MHz bands in conformity with the general 
competitive bidding rules set forth in part 1, subpart Q of the 
Commission's Rules, which are substantially consistent with the bidding 
procedures that have been employed in previous Commission auctions. 
Specifically, the NPRM proposes to employ the part 1 rules governing 
designated entities, application issues, payment issues, competitive 
bidding design, procedure and timing issues, and anti-collusion, 
subject to possible modification. The NPRM seeks comment on this 
proposal, and on whether any of the part 1 rules would be inappropriate 
in an auction for these spectrum blocks, especially with regard to 
possible inclusion of broadcast services in our auction methodology.
3. Provisions for Designated Entities
    71. The Communications Act provides that, in developing competitive 
bidding procedures, the Commission shall consider various statutory 
objectives and consider several alternative methods for achieving 
them.27
---------------------------------------------------------------------------

    \27\ See 47 U.S.C. 309(j)(3), 309(j)(4).
---------------------------------------------------------------------------

    a. Small Business Definitions. 72. In the Competitive Bidding 
Second Memorandum Opinion and Order, the Commission stated that it 
would define eligibility requirements for small businesses on a 
service-specific basis, taking into account the capital requirements 
and other characteristics of each particular service in establishing 
the appropriate threshold.28 The Part 1 Third Report and 
Order,29 while it standardizes many auction rules, continues 
a service-by-service approach to defining small businesses. For the 36 
megahertz of commercial spectrum, the NPRM proposes to define a small 
business as any firm with average annual gross revenues for the three 
preceding years not in excess of $40 million.
---------------------------------------------------------------------------

    \28\ Implementation of Section 309(j) of the Communications 
Act--Competitive Bidding, PP Docket No. 93-253, Second Memorandum 
Opinion and Order, 59 FR 44272, August 26, 1994.
    \29\ See 63 FR 2315, January 15, 1999.
---------------------------------------------------------------------------

    73. The Commission observes that the capital costs of operational 
facilities in the 746-764 MHz and 776-794 MHz bands are likely to vary 
widely based on the services provided. Accordingly, the NPRM proposes 
to adopt small business size standards that afford licensees the 
greatest flexibility. Thus, in addition to our proposal to adopt the 
general small business standard used in broadband PCS, 2.3 GHz, and 39 
GHz service rules, the NPRM also proposes to adopt the definition for 
very small businesses used for 39 GHz licenses and for the PCS F Block 
licenses, namely, businesses with average annual gross revenues for the 
three preceding years not in excess of $15 million.
    74. The NPRM seeks comment on the use of these standards, with 
particular focus on the appropriate definitions of small and very small 
businesses as they relate to the size of the geographic area to be 
covered, and the spectrum allocated to each license. For the proposed 
definitions of small business and very small business, the NPRM 
proposes to include the entity's affiliates and controlling interests 
when determining eligibility by gross revenue criteria. In discussing 
these issues, commenters are requested to address the expected capital 
requirements for services in the 746-764 MHz and 776-794 MHz bands. 
Commenters also are invited to compare these proposals with other 
services for which the Commission has established auction procedures, 
as a basis for their comments regarding the appropriate definitions for 
small and very small

[[Page 36653]]

businesses. The NPRM also seeks comment on whether the proposed 
designated entity provisions, if adopted and applied to the services in 
these bands, would be sufficient to promote participation by businesses 
owned by minorities and by women, and participation by rural telephone 
companies. To the extent that commenters propose additional provisions 
to ensure participation by minority-owned and women-owned businesses, 
they are also invited to address how such provisions should be crafted 
to meet the relevant standards of judicial review.30 In all 
other respects, the Commission proposes to apply the competitive 
bidding procedures that the Commission adopted in the Part 1 Third 
Report and Order, subject to (1) any modifications the Commission may 
adopt in response to the Second Further Notice and (2) pending 
petitions for reconsideration of the Part 1 Third Report and Order.
---------------------------------------------------------------------------

    \30\ See Adarand Constructors v. Pena, 515 U.S. 200 (1995); 
United States v. Virginia, 518 U.S. 515 (1996).
---------------------------------------------------------------------------

III. Protection of Television Services

A. Background

    75. The NPRM discusses technical requirements for protecting 
incumbent broadcast licensees and planned DTV allotments against 
interference. The Commission tentatively concludes that the factors and 
considerations examined in the Public Safety Spectrum Report and Order 
31 are equally relevant with respect to the use of the 746-
764 MHz and 776-794 MHz bands for commercial mobile 
services.32 Thus, the NPRM proposes to adopt the same 
criteria to protect TV and DTV operations from commercial mobile 
operations that were adopted in the Public Safety Spectrum Report and 
Order.33 The Commission tentatively concludes that the 
sharing criteria applicable to mobile service base stations would be 
sufficient to protect TV and DTV operations from fixed service 
operations also, but seeks comment on this tentative conclusion. With 
respect to protection of TV and DTV operations from new broadcast 
operations on these frequencies, however, the Public Safety Spectrum 
Report and Order provides no guidance, since broadcasting stations and 
services are not permitted on the public safety frequencies. A 
different approach or criteria may therefore be appropriate, depending 
on the types of broadcasting services permitted.
---------------------------------------------------------------------------

    \31\ 63 FR 58685, November 2, 1998.
    \32\ This would include consideration of TV stations outside 
this spectrum, i.e., on Channel 59. The adjacent channel protection 
criteria proposed to be established herein would apply equally to 
Channel 59 stations, and new licensees in the Channel 60 spectrum 
block will need to recognize the existence of such adjacent channel 
use in designing their systems and services. Moreover, use of 
Channel 59 may change as DTV service is relocated to the core 
digital channels. Any interference or protection criteria involvng 
different uses of Channel 59 would necessarily be established in a 
later proceeding.
    \33\ To the extent that our pending reconsideration of that 
Order results in subsequent changes to the rules adopted in that 
proceeding, those changes may need to be reflected as they apply or 
are relevant here.
---------------------------------------------------------------------------

B. Protection of TV Stations

    76. The Commission concluded in the Public Safety Spectrum Report 
and Order that the use of a 40 dB D/U signal ratio for co-channel 
operations and a 0 dB D/U signal ratio for adjacent channel operations 
was supported by our experience using this standard to protect TV 
service from interference from land mobile operations in the New York 
metropolitan area without serious adverse consequences, and that the 
Commission would, therefore, adopt such standards for calculating 
geographic separation requirements. The Commission concluded that the 
40 dB D/U signal ratio is a reasonable value that will provide 
sufficient TV protection, as required by the Balanced Budget Act of 
1997.34 Co-channel land mobile base station transmitters 
would be limited to producing a maximum signal strength at the 
hypothetical TV Grade B contour 40 dB below 64 dBu, or 24 dBu. The 
Commission also adopted a 0 dB D/U signal ratio for adjacent channel 
operations. Adjacent channel land mobile transmitters would be limited 
to a maximum signal that can equal the TV Grade B signal of 64 dBu at 
the TV station Grade B contour, defined here as 87.7 km (55 
miles).35 The Commission tentatively concludes in this NPRM 
that the same criteria should be applied to commercial mobile and fixed 
operations in the 746-764 MHz and 776-794 MHz bands. The NPRM thus 
proposes to adopt rules similar to those reflected in Sec. 90.545 of 
the Commission's Rules,36 with the following proposed 
modification. Because the Commission is not proposing any specific 
antenna height or transmitter power limitations for part 27 licensees, 
part 27 licensees who propose to operate stations with antenna heights 
or transmitter powers that exceed those specified in Sec. 90.545(b) 
must provide to the Commission for approval a detailed technical 
analysis demonstrating that the required interference protection 
criteria are met prior to placing such stations into operation. The 
NPRM invites comment as to the appropriate criteria that should be used 
to protect TV broadcasting against interference from fixed operations.
---------------------------------------------------------------------------

    \34\ See 47 U.S.C. 337(d).
    \35\ See 47 CFR 73.610.
    \36\ 47 CFR 90.545.
---------------------------------------------------------------------------

C. Protection of DTV Stations

    77. In the Public Safety Spectrum Second Notice, the Commission 
noted that its proposals were based on protecting analog TV, and asked 
for comments on the appropriate D/U signal ratios that should be 
applied to protect DTV. After examining the record, the Commission 
decided to apply similar criteria, adopted in the Public Safety 
Spectrum Report and Order for protecting reception of analog TV 
stations, to protecting DTV reception.37 Since the 
Commission allocated DTV channels to replicate existing TV station 
service areas, it allowed public safety stations to provide the same 
field strength at the equivalent Grade B contour of the DTV station as 
they do for an analog TV station, and adjust the D/U ratio accordingly. 
The Commission therefore provided for a TV station to have protection 
ratios of 40 dB for co-channel and 0 dB for adjacent channel at its 64 
dB field strength contour. The equivalent ratios for a DTV 
station that has a Grade B signal strength contour of 41 dB 
are 17 dB and -23 dB, respectively.
---------------------------------------------------------------------------

    \37\ A TV station's hypothetical Grade B contour is plotted 
based on a 64 dB signal strength using the F(50,50) curve. 
See 47 CFR 73.699. A DTV station's equivalent contour is based on a 
41 dB signal strength using the F(50,90) curve. See 47 CFR 
73.625.
---------------------------------------------------------------------------

    78. In making this determination, the Commission noted that in the 
DTV Sixth Report and Order it had specified a minimum geographic 
separation of 250 kilometers (155 miles) between: (1) DTV stations and 
(2) the city-center in areas where there are existing land mobile co-
channel operations. Section 90.305(a) of the Commission's Rules 
provides that maximum facility land mobile base stations can be located 
up to 80.5 km (50 mi) from the city-center of one of the specified 
cities. Consequently, under the geographic separation adopted in the 
DTV Sixth Report and Order, a maximum facility land mobile base station 
could choose to locate its station as close as 169.5 km (250 km-80.5 
km), or 105 mi. At this distance, the land mobile base station would 
provide a co-channel signal at the DTV station's 88.5 km (55 mi) 
equivalent Grade B contour that would provide less than a 40 dB D/U 
protection ratio to a DTV receiver. Thus, the Commission's decision to 
require 700 MHz land mobile systems to

[[Page 36654]]

provide signal ratios for DTV stations that will allow approximately 
the same separation distance as we did for analog TV stations 
represented a reasonable balance between the needs of both DTV stations 
and public safety entities.
    79. The Commission tentatively concludes that the same criteria 
should be applied to commercial mobile and fixed operations in the 746-
764 MHz and 776-794 MHz bands. The NPRM thus proposes to adopt rules 
similar to those reflected in Sec. 90.545 of the Commission's Rules, 
with the following proposed modification. Part 27 licensees who propose 
to operate stations with antenna heights or transmitter powers that 
exceed those specified in Sec. 90.545(b) must provide to the Commission 
for approval a detailed technical analysis demonstrating that the 
required interference protection criteria are met, prior to placing 
such stations into operation.

D. TV Protected Service Contour Alternatives

    80. In the Public Safety Spectrum Report and Order the Commission 
found that a geographic separation distance table based on a standard 
88.5 km Grade B service contour (equivalent Grade B for DTV) would be 
the most convenient form. Limiting TV/land mobile separation to 
distances specified in a table, however, may prevent public safety 
entities from fully utilizing the spectrum in a number of major 
metropolitan areas until after the transition period. Thus, the 
Commission allowed public safety applicants to select one of three ways 
to meet the TV/DTV protection requirements: (1) utilize the geographic 
separation specified in the Table; (2) submit an engineering study to 
justify other separations, which is subject to Commission approval; or 
(3) obtain concurrence from any applicable TV/DTV station. The NPRM 
proposes that these same alternatives be available to Part 27 licensees 
and seeks comment on this approach.
    81. Also, in the Public Safety Spectrum Second Notice the 
Commission requested comment on whether the size of the reference TV 
contour should be increased because some TV stations have facilities 
exceeding those upon which the 88.5 km (55 mi) contour was based. The 
Commission stated that a TV station with parameters of 5 megawatts with 
an antenna height above average terrain (HAAT) of 610 meters could have 
a Grade B contour distance of 107 km (66.5 mi). In order to protect 
certain TV/DTV stations, which have extremely large contours due to 
unusual height situations, the Commission incorporated an additional 
factor that must be used by all public safety base, control, and mobile 
stations to protect these few TV/DTV stations and afford the land 
mobile stations the necessary protection from the TV/DTV stations. The 
NPRM proposes that this additional factor also be applicable to all 
Part 27 licensees operating in these bands. The NPRM thus proposes to 
adopt a rule similar to that reflected in Sec. 90.545(c)(2)(iii) of the 
Commission's Rules 38 to address this situation.
---------------------------------------------------------------------------

    \38\ See 47 CFR 90.545(c)(2)(iii).
---------------------------------------------------------------------------

E. Other Issues

    82. In the DTV Sixth Report and Order,39 the Commission 
raised the possibility that, in negotiating among themselves for 
changes in allotments and assignments, TV licensees could include 
agreements for compensation. The NPRM proposes to permit new licensees 
in this spectrum similarly to reach agreements with licensees of 
protected TV stations, including holders of construction permits, 
compensating them for converting to solely DTV transmission before the 
end of the DTV transition period, accepting higher levels of 
interference than those allowed by the protection standards, or 
otherwise accommodating new licensees in these bands.
---------------------------------------------------------------------------

    \39\ 62 FR 26684, May 14, 1997.
---------------------------------------------------------------------------

    83. Finally, because the NPRM proposes to license this spectrum for 
broadcasting, as well as for the fixed and mobile uses, comment is also 
requested on interference protection standards for any new broadcast 
operations that may be licensed in this spectrum.40 The NPRM 
further requests comment on whether the Commission should establish 
standards for geographic separations between any TV broadcasting in 
this spectrum, authorized pursuant to this or a successor rulemaking 
proceeding, and from current analog TV or new DTV stations authorized 
before this proceeding; whether the Commission should treat any 
broadcast licenses on a case-by-case basis; or whether there are other 
approaches we should use to consider interference to and from broadcast 
operations.
---------------------------------------------------------------------------

    \40\  Stations transmitting broadcast signals are likely to 
produce interference effects to analog TV and DTV stations that 
differ from those of land mobile or fixed stations.
---------------------------------------------------------------------------

V. Administrative Matters

A. Ex Parte Presentations

    84. For purposes of this permit-but-disclose notice and comment 
rulemaking proceeding, members of the public are advised that ex parte 
presentations are permitted, except during the ``Sunshine Agenda'' 
period, provided they are disclosed under the Commission's Rules. See 
generally 47 CFR 1.1202, 1.1203, 1.1206(a).

D. Pleading Dates

    85. Pursuant to Sections 1.415 and 1.419 of the Commission's Rules 
(47 CFR 1.415, 1.419) interested parties may file comments on or before 
July 19, 1999, and reply comments on or before August 13, 1999. 
Comments and reply comments should be filed in WT Docket No. 99-168. 
All relevant and timely comments will be considered by the Commission 
before final action is taken in this proceeding. To file formally, 
interested parties must file an original and four copies of all 
comments, reply comments, and supporting comments. If interested 
parties want each Commissioner to receive a personal copy of their 
comments, they must file an original plus nine copies. Interested 
parties should send comments and reply comments to the Office of the 
Secretary, Federal Communications Commission, 445 12th Street, S.W., 
Washington, D.C. 20554, with a copy to Stan Wiggins, Policy Division, 
Wireless Telecommunications Bureau, 445 12th Street, S.W., Washington, 
D.C. 20554.
    86. Comments may also be filed using the Commission's Electronic 
Comment Filing System (ECFS). Comments filed through the ECFS can be 
sent as an electronic file via the Internet to <http://www.fcc.gov/e-
file/ecfs.html>. Generally, only one copy of an electronic submission 
must be filed. In completing the transmittal screen, commenters should 
include their full name, Postal Service mailing address, and a 
reference to WT Docket No. 99-168. Parties may also submit an 
electronic comment by Internet E-Mail. To obtain filing instructions 
for E-Mail comments, commenters should send an e-mail to [email protected], 
and should include the following words in the body of the message, 
``get form .''
    87. Comments and reply comments will be available for public 
inspection during regular business hours at the FCC Reference 
Information Center, 445 12th Street, S.W., Washington, D.C. 20554. 
Copies of comments and reply comments are available through the 
Commission's duplicating contractor: International Transcription 
Services, Inc., (202) 857-3800, CY-B400, 445 12th Street, S.W., 
Washington, D.C. 20054.

B. Initial Regulatory Flexibility Analysis

    88. As required by section 603 of the Regulatory Flexibility Act, 
the

[[Page 36655]]

Commission has prepared the following Initial Regulatory Flexibility 
Analysis (IRFA) of the expected impact on small entities of the 
proposals suggested in this document. Written public comments are 
requested on the IRFA. These comments must be filed in accordance with 
the same filing deadlines as comments on the rest of the NPRM but they 
must have a separate and distinct heading designating them as responses 
to the IRFA. The Commission's Office of Public Affairs, Reference 
Operations Division, shall send a copy of the NPRM, including the IRFA, 
to the Chief Counsel for Advocacy of the Small Business Administration 
in accordance with paragraph 603(a) of the Regulatory Flexibility Act. 
Public Law 96-354, 94 Stat. 1164, 5 U.S.C. 601 et seq. (1981).

Initial Regulatory Flexibility Analysis Statement

A. Need for, and Objectives of, the Proposed Rules

    89. This rulemaking is being initiated to adopt certain service, 
licensing, and competitive bidding rules for the 746-764 and 776-794 
MHz segments of the 746-806 MHz band. The Congress directed the 
Commission, in the Balanced Budget Act of 1997, to allocate 36 
megahertz of this band for commercial use, and to license that spectrum 
by competitive bidding. In the Reallocation Report and Order, the 
Commission reallocated 36 megahertz of this band to commercial use and 
determined that the potential range of commercial services would 
include all services permitted under the U.S. Table of Allocations--
Fixed, Mobile, and Broadcasting services. In this NPRM, we propose to 
license the 746-764 MHz and 776-794 MHz commercial bands under a 
flexible framework established in part 27 of the Commission's Rules. We 
expect that provisions of part 27 will be modified to reflect the 
particular characteristics and circumstances of services offered 
through the use of spectrum on these bands. These modifications may 
also reference or incorporate rules in other parts of the Commission's 
Rules, such as part 73 governing broadcast services. We believe that 
this flexible approach will encourage new and innovative services and 
technologies in this band without significantly limiting the range of 
potential uses for this spectrum.
    90. Our objectives for the NPRM are: (1) to auction licenses for 
these commercial spectrum blocks as directed by the Balanced Budget 
Act; (2) to accommodate the introduction of new uses of spectrum and 
the enhancement of existing uses; (3) to implement the section 303(y) 
requirement that flexible use allocations not create harmful 
interference or discourage investment; (4) to facilitate the awarding 
of licenses to entities that value them the most. The Commission seeks 
to develop a regulatory plan for these commercial spectrum blocks that 
will allow for efficient licensing and intensive use of the band, 
eliminate unnecessary regulatory burdens, enhance the competitive 
potential of the band, and provide a wide variety of radio services to 
the public.

B. Legal Basis for Proposed Rules

    91. The proposed action is authorized under sections 1, 4(i), 7, 
10, 201, 202, 208, 214, 301, 303, 307, 308, 309(j), 309(k), 310, 311, 
315, 317, 324, 331, 332 and 336 of the Communications Act of 1934, 47 
U.S.C. 151, 154(i), 157, 160, 201, 202, 208, 214, 301, 303, 307, 308, 
309(j), 309(k), 310, 311, 315, 317, 324, 331, 332, 336.

C. Description and Estimate of the Number of Small Entities To Which 
the Proposed Rules Will Apply

    92. For the purposes of this NPRM, the RFA defines a ``small 
business'' to be the same as a ``small business concern'' under the 
Small Business Act,41 unless the Commission has developed 
one or more definitions that are appropriate to its 
activities.42 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).43
---------------------------------------------------------------------------

    \41\ 15 U.S.C. 632.
    \42\ See 5 U.S.C. 601(3) (incorporating by reference the 
definition of ``small business concern'' in 5 U.S.C. 632).
    \43\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    93. The proposals in this NPRM affect applicants who wish to 
provide services in the 746-764 and 776-794 MHz bands. Pursuant to 47 
CFR 24.720(b), the Commission has defined ``small entity'' for Blocks C 
and F broadband PCS licensees as firms that had average gross revenues 
of less than $40 million in the three previous calendar years. This 
regulation defining ``small entity'' in the context of broadband PCS 
auctions has been approved by the SBA. With respect to applicants for 
licenses in the 746-764 and 776-794 MHz bands, we propose to use the 
small entity definition adopted in the Broadband PCS proceeding.
    94. The Commission, however, 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 is held. Even after that, the 
Commission will not know how many licensees will partition their 
license areas or disaggregate their spectrum blocks, if partitioning 
and disaggregation are allowed. In view of this uncertainty regarding 
the number of entities that will be granted licenses in the 746-764 and 
776-794 MHz bands, we have assumed, for purposes of our evaluations and 
conclusions in the IRFA, that all of the prospective licenses are small 
entities, as that term is defined by the SBA or our proposed 
definitions for these bands. We invite comment on this analysis.

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

    95. Entities interested in acquiring spectrum in the 746-764 and 
776-794 MHz bands will be required to submit license applications, and 
high bidders will be required to apply for their individual licenses. 
The proposals under consideration in this item also include requiring 
commercial licenses to make showings that they are in compliance with 
construction requirements, file applications for license renewals, and 
make certain other filings as required by the Communications Act and 
Commission regulations. In addition to the general licensing 
requirements of parts 27 and 73 of the Commission's Rules, other parts 
may be applicable to commercial licensees, depending on the nature of 
service provided. We request comment on how these requirements can be 
modified to reduce the burden on small entities and still meet the 
objectives of the proceeding.

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

    96. We have reduced burdens wherever possible. With specific regard 
to the potential for use of these bands by dissimilar services such as 
broadcast and commercial fixed and mobile, we have sought comment on 
different approaches to minimizing the burdens of interference 
management, consistent with the statutory mandate to protect both 
public safety uses and television service. To minimize any negative 
impact, we have also proposed certain incentives for the benefit of 
small entities. These provisions include partitioning and spectrum 
disaggregation. We have also sought comment on combinatorial auction 
procedures, which may enable small entities to participate in the 
licensing

[[Page 36656]]

process with more flexibility. The regulatory burdens we have retained, 
such as filing applications on appropriate forms, are necessary in 
order to ensure that the public receives the benefits of innovative new 
services, or enhanced existing services, in a prompt and efficient 
manner, and generally apply existing regulatory procedures to the new 
licensees expected to occupy these bands. We will continue to examine 
alternatives in the future with the objectives of eliminating 
unnecessary regulations and minimizing any significant economic impact 
on small entities. We seek comment on significant alternatives 
commenters believe we should adopt.

F. Federal Rules that May Duplicate, Overlap, or Conflict with the 
Proposed Rules

    97. None.

VI. Ordering Clauses

    98. Accordingly, it is ordered that these actions are taken 
pursuant to sections 1, 4(i), 7, 10, 201, 202, 208, 214, 301, 303, 307, 
308, 309(j), 309(k), 310, 311, 315, 317, 324, 331, 332 and 336 of the 
Communications Act of 1934, 47 U.S.C. 151, 154(i), 157, 160, 201, 202, 
208, 214, 301, 303, 307, 308, 309(j), 309(k), 310, 311, 315, 317, 324, 
331, 332, 336.
    99. It is further ordered that notice is hereby given of the 
proposed regulatory changes described in this NPRM, and that comment is 
sought on these proposals.
    100. It is further ordered that the Commission's Office of Public 
Affairs, Reference Operations Division, shall send a copy of this NPRM, 
including the Initial Regulatory Flexibility Analysis, to the Chief 
Counsel for Advocacy of the Small Business Administration in accordance 
with Section 603(a) of the Regulatory Flexibility Act of 1980, Public 
Law 96-354, 94 Stat. 1164, 5 U.S.C. 601-612 (1980).

Paperwork Reduction Act

    101. This NPRM contains a proposed or modified information 
collection. The Commission, as part of its continuing effort to reduce 
paperwork burdens, invites the general public and the Office of 
Management and Budget to comment on the possible information 
collections contained in this NPRM, as required by the Paperwork 
Reduction Act of 1995, Public Law 104-13. Written comments must be 
submitted by the public and by other Agencies on the proposed 
information collections on or before September 7, 1999. Comments should 
address: (1) whether the proposed collection of information is 
necessary for the proper performance of the functions of the 
Commission, including whether the information shall have practical 
utility; (2) the accuracy of the Commission's burden estimates; (3) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (4) ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology.
    OMB Approval Number: 
    Title: Service Rules for the 746-764 and 764-794 MHZ Bands and 
Revisions to Part 27.
    Form No.: FCC Forms 175, 301, 302, 346, 347, 601, and 603 will 
almost surely be affected either by revision to the form or revision of 
the number of respondents subject to the requirement. Other FCC Forms 
may also be modified or the number of respondents increased, depending 
on the final rules adopted in this proceeding.
    Type of Review: New Collection.
    Respondents: Business and other for-profit and non-profit 
institutions.
    Number of Respondents: The Commission expects a range of between 
1,056 and 3,168 respondents.
    Estimated Time Per Response: Between 4 hours and thirty minutes 
(cumulative figure based on the time to fill out several of the 
wireless universal service forms rather than any one form) and 115 
hours and 12 minutes. (based on the time to fill out several broadcast 
forms rather than any one form). Note these estimates are not based on 
the time needed to complete any individual form, but are cumulative 
figures.
    Needs and Uses: This Notice of Proposed Rulemaking seeks comment on 
the service rules and auction procedures to be developed for the 
licensing of spectrum bands recently allocated to fixed and mobile 
wireless use, as well as broadcasting. The service rules will encompass 
a variety of technical and interference provisions, as well as 
substantive policy deriving from both statutory and regulatory 
requirements. In the latter regard, the rules will need to consider the 
requirements applicable to common carrier and non-common carrier 
services, and the broadcast-specific requirements established in the 
Communications Act and by Commission regulations. In recognizing the 
potential convergence of the wireless and broadcast regulatory 
contexts, the service rules will address a wide range of requirements, 
such as license eligibility and attribution of ownership interests. The 
primary effect of these rules will be to enable licensing of these 
spectrum bands, and thus to expand the number of licensees affected by 
existing regulatory requirements, including both service rules and 
auction procedures. The initial burden estimate that follows is 
developed from that premise, and relies on the straightforward 
extension of paperwork burdens associated with existing Commission 
licensing requirements to entities that will bid in the auction and, if 
successful, obtain licenses on these spectrum bands. Assumptions about 
the number of entities that will be licensed on this spectrum to 
provide particular categories of service are necessarily speculative, 
because the proposed service rules would not determine the extent to 
which these bands may be used for specific service applications, or the 
method of spectrum use adopted by licensees. The burden estimate was 
instead developed to specify in terms that describe the potential range 
of paperwork burdens associated with different uses of the spectrum. 
Depending on the record developed, especially with regard to new 
services and technologies on these bands, the Commission may, for 
example, develop and implement auction procedures that vary from 
existing broadcast or wireless procedures. Other existing requirements 
may be altered, depending on the record developed and the types of 
service expected to be licensed. Disclosure of ownership interests 
germane to eligibility determinations, compliance with existing 
Commission reporting requirements for EEO obligations, and statutory 
accessibility and political broadcast requirements suggest, but do not 
exhaust, the range of requirements potentially affected. A more 
thorough listing of those requirements is contained in the synopsis of 
the full text of the NPRM, as well as in the NPRM itself. The NPRM 
seeks comment on means by which to minimize the effect of any paperwork 
burdens arising from the accommodation of divergent technical and 
regulatory requirements for these different services. The Commission 
generally expects that such burdens will, overall, not exceed existing 
burdens for established services, excepting the proposed requirement 
that licensees apprise the Commission of changes in service offerings 
that entail changes in their regulatory status. In developing an 
initial burden estimate, the Commission has assumed that the bands will 
initially be licensed to 176 geographic areas, based on Department of 
Commerce Economic Areas (EAs), following Commission 
practice.44 The Commission has assumed, solely for the

[[Page 36657]]

purpose of preparing its estimate of affected entities, that licensing 
in each geographic area will be exclusively based on either a broadcast 
or non-broadcast structure. Under the conventional broadcast structure, 
each geographic area would include six spectrum blocks, each occupying 
six megahertz. That assumed emphasis on broadcast services generates 
the following burden estimate. Assuming 176 licensed areas, and 6 
licensees per area, broadcast licensing burdens would be extended to 
approximately 1056 licensees. For a nonbroadcast structure, again using 
the EA figure of 176 licensed areas but assuming 18 licensees per area, 
based on each licensee implementing a paired wireless service using 1 
MHz in each direction, the expected number of licensees affected would 
be about 3,168.
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    \44\ See 47 CFR 26.102 and 27.6.
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List of Subjects

47 CFR Part 27

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

47 CFR Part 73

    Communications equipment, Equal employment opportunity, Reporting 
and recordkeeping requirements, Television.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 99-17143 Filed 7-6-99; 8:45 am]
BILLING CODE 6712-01-U