[Federal Register Volume 65, Number 65 (Tuesday, April 4, 2000)]
[Rules and Regulations]
[Pages 17594-17607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-8144]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 27

[CC Docket No. 99-168; FCC 00-90]


Service Rules for the 746-764 and 776-794 MHz Bands

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This document establishes service rules for licensing Guard 
Bands that encompass six megahertz of spectrum in the 746-764 MHz and 
776-794 MHz bands which have been reallocated for commercial use from 
their previous use for the broadcasting service. The Commission 
previously established service rules for thirty of the thirty-six 
megahertz reallocated for commercial use, and established two paired 
Guard Bands, one of 4 megahertz and one of 2 megahertz. This document 
adopts licensing, technical, and operational rules for these Guard 
Bands.

DATES: Effective April 4, 2000.

FOR FURTHER INFORMATION CONTACT: Legal Information: Gary Michaels, 202-
418-0660; Technical Information: Marty Liebman, 202-418-1310.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second 
Report and Order (Second R&O) in WT Docket No. 99-168; FCC 00-90, 
adopted March 8, 2000, and released March 9, 2000. The complete text of 
this Second R&O is available for inspection and copying during normal 
business hours in the FCC Reference Information Center, Courtyard 
Level, 445 12th Street, SW, Washington, DC, and also may be purchased 
from the Commission's copy contractor, International Transcription 
Services (ITS, Inc.), CY-B400, 445 12th Street, SW, Washington, DC.

Synopsis of the Second Report and Order

    1. The Commission adopts a Second R&O in WT Docket No. 99-168, 
establishing service and auction rules for the commercial licensing of 
6 megahertz of spectrum in the 746-764 and 776-794 MHz bands (700 MHz 
band) formerly reserved for analog UHF

[[Page 17595]]

television service. The Notice of Proposed Rulemaking, NPRM, initiating 
this proceeding may be found at 64 FR 36686, July 7, 1999. The First 
Report and Order in this proceeding, First R&O, 65 FR 3139, (January 
20, 2000) adopted service and auction rules for thirty of the thirty-
six megahertz reallocated for commercial use, and established two 
paired Guard Bands, one of 4 megahertz and one of 2 megahertz, located 
adjacent to spectrum allocated for public safety use. This Second R&O 
adopts licensing, technical, and operational rules for these Guard 
Bands. The 2 megahertz Guard Band includes 746-747 MHz and 776-777 MHz, 
and the 4 megahertz Guard Band includes 762-764 MHz and 792-794 MHz.
    2. The Second R&O seeks to minimize the potential for harmful 
interference to public safety operations in the immediately adjacent 
700 MHz spectrum by adopting a package of interference protections 
modeled on the interference standards within the 700 MHz public safety 
spectrum. Thus, 700 MHz public safety licensees should experience no 
greater interference risk from Guard Band users than from public safety 
licensees. Accordingly, entities operating in the Guard Bands must 
comply with specified ``out-of-band emission'' criteria, and with 
prescribed frequency coordination procedures that include advance 
notification to the Commission-recognized public safety frequency 
coordinators and adjacent area Guard Band users. To reduce the 
potential for such harmful interference to public safety operations, 
the Commission also finds that entities operating in the Guard Bands 
should not be permitted to employ a cellular system architecture, an 
architecture not used by public safety licensees. Entities using 
cellular architectures may, however, participate in the 30 megahertz 
band auction. Additionally, the Commission recently announced an 
auction of broadband Personal Communications Service (PCS) licenses 
that would make additional spectrum available for systems using 
cellular architectures. The technical and operational requirements for 
Guard Band systems are discussed in more detail in paragraphs 14 
through 24 of the full text of the Second R&O.
    3. The Commission will assign licenses in the Guard Bands to Guard 
Band Managers using competitive bidding. The Guard Band Manager will be 
a new class of commercial licensee who will be engaged in the business 
of leasing spectrum for value to third parties on a for-profit basis. 
Guard Band Managers will be required to adhere to strict frequency 
coordination and interference rules, and control use of the spectrum so 
as to facilitate protection for public safety. The Guard Band Manager 
may subdivide its spectrum in any manner it chooses and make it 
available to any system operator, or directly to any end user for fixed 
or mobile communications, consistent with the frequency coordination 
and interference rules specified for these bands.
    4. Guard Band Managers will be allowed the flexibility to subdivide 
their spectrum, and lease it to third party users without having to 
secure approval for the transfer or assignment of their license. 
Additionally, although the Commission adopts a performance standard 
under which the Guard Band Manager will be required to provide 
substantial service during the term of its license, the Guard Band 
Manager will be able to meet that standard by leasing spectrum, rather 
than by incurring the substantial capital costs associated with system 
buildout. This licensing represents an innovative spectrum management 
approach that should enable parties to acquire spectrum more readily 
for varied uses, while streamlining the Commission's spectrum 
management responsibilities.
    5. The Commission will not impose any restrictions on the type of 
customers with whom Guard Band Managers may seek to do business, and 
will provide Guard Band Manager licensees significant flexibility, 
within the technical constraints necessary to protect public safety, to 
tailor use of their assigned spectrum. The Commission's principal 
reason for licensing Guard Band spectrum to Guard Band Managers is that 
this is the most effective and efficient way to manage this spectrum 
while protecting public safety operations in adjacent bands. The 
Commission also believes that there is a significant benefit to having 
a single entity in a service area that is responsible for coordinating 
the selection of Guard Band frequencies to be used and the operating 
parameters of the sites to be constructed. The use of Guard Band 
Managers will also enable end users to acquire spectrum that can meet 
unique geographic requirements. The Guard Band Manager license will 
also enable small businesses to acquire spectrum in amounts, and for 
periods of time, that better suit their unique characteristics and 
specialized communications needs.
    6. Each Guard Band Manager will be granted a license under which it 
will allow others to construct and operate stations at any available 
site within the licensed area and on any channel for which the Guard 
Band Manager is licensed. The only exception to this blanket license 
approach is for stations that require individual Commission review, 
because submission of an Environmental Assessment is required under 
Sec. 1.1307 of the Commission's rules; international coordination is 
required; or the station would affect the radio frequency quiet zones 
described in Sec. 90.177 of the Commission's rules. Additionally, 
station antenna structures that require notification to the Federal 
Aviation Administration must be registered with the Commission prior to 
construction. In cases where individual Commission review is required, 
the Guard Band Manager must file a separate application and obtain 
appropriate approvals or authorizations. Guard Band Managers may allow 
third-party system operators or end users to modify stations that are 
covered under a Guard Band Manager's blanket license without prior 
Commission approval. In all instances, however, a primary 
responsibility of the Guard Band Manager will be to coordinate 
carefully operations and modifications of systems in the Guard Bands to 
ensure non-interference with public safety.
    7. To minimize the potential for interference to public safety 
operations in the adjacent 700 MHz bands, as well as adjacent channel 
and co-channel operations in adjacent geographic areas, the Commission 
adopts coordination requirements. Under these coordination 
requirements, Guard Band Managers must notify Commission-recognized 
public safety frequency coordinators in the 700 MHz public safety band 
and adjacent-area Guard Band Managers of the technical parameters of 
any site constructed in the Guard Band Manager's license area. This 
notification requirement applies to the coordination of both new 
stations and station modifications. At a minimum, each notification 
must include the frequency or frequencies coordinated, antenna height, 
antenna location, type of emission, effective radiated power, a 
description of the service area, date of coordination and user name or, 
in the alternative, a description of the type of operation.
    8. Such notifications must be made within one business day after a 
Guard Band Manager has coordinated the station. To allow the public 
safety community and other Guard Band Managers time to evaluate the 
coordinations, entities coordinated by a Guard Band Manager must wait 
at least ten business days after notification before they can begin 
operating under the Guard Band Manager's license. Guard Band Managers 
must also notify the same entities when an application

[[Page 17596]]

for an individual station license is filed with the Commission and 
users must wait the same 10-day period. The Commission expects Guard 
Band Managers to cooperate with one another and the public safety 
community in the selection of frequencies. In the event of harmful 
interference, Guard Band Managers are expected to cooperate to resolve 
the problem by mutually satisfactory arrangements. If the parties 
involved are unable to reach a mutually satisfactory solution, the 
Commission may impose restrictions on the operation(s) of any of the 
parties involved, consistent with its enforcement powers under the 
Communications Act.
    9. Statutory Considerations. The Commission finds that the 
licensing of spectrum in this band to Guard Band Managers is consistent 
with section 337 of the Communications Act, the Commission's spectrum 
management obligations, and the public interest. Congress instructed 
the Commission to reallocate 24 megahertz of the spectrum between 746 
and 806 MHz for public safety services and 36 megahertz for commercial 
use. The Commission believes it is a reasonable interpretation of the 
``commercial use'' requirement in section 337(a)(2) to permit non-
public safety, commercial entities to lease spectrum within the 36 
megahertz to third-party users (commercial or individual) upon which no 
end-use restrictions, except for certain technical restrictions set 
forth in the Second R&O, will be imposed.
    10. The Commission's decision to reserve this spectrum for Guard 
Band Managers is consistent with Congress's direction in section 
337(d)(4) of the Communications Act, and the Conference Report language 
pertaining to that section, that users of the public safety spectrum be 
protected from interference. Section 337 also supports licensing the 
Guard Bands to Guard Band Managers because this licensee is a 
commercial entity that will be engaged in a for-profit use of the 
spectrum. The Commission concludes that the Guard Band Manager's 
generation of revenues from its use of the licensed spectrum meets the 
section 337(a)(2) requirement that the spectrum be for commercial use.
    11. The Commission also concludes that the creation of the Guard 
Band Manager as a new class of licensee is consistent with the 
Commission's broad licensing and spectrum management authority under 
sections 301, 303(b), and 309(j) of the Communications Act, and the 
Commission's broad authority to adopt reasonable rules in the public 
interest establishing licensing eligibility criteria. Moreover, the 
Commission believes that the Guard Band Manager concept is consistent 
with the requirement in section 310(d) of the Communications Act that 
licensees retain ultimate de facto control of their licenses. Guard 
Band Managers will have full authority and the duty to take whatever 
actions are necessary to ensure third-party compliance with the Act and 
the Commission's rules. In establishing this new class of licensee, the 
Commission does not exceed its statutory authority or relinquish its 
statutory responsibilities pertaining to the licensing of wireless 
services. The Commission will continue to fulfill its statutory 
obligation under section 309(a) to determine whether the public 
interest, convenience, and necessity will be served by the granting of 
a Guard Band Manager's license application. As with any other licensee, 
the Commission will hold Guard Band Managers directly responsible for 
compliance with all obligations that the Communications Act imposes on 
licensees. The Commission will also hold Guard Band Managers directly 
responsible for any interference or misuse of the frequencies arising 
from their use by non-licensed entities. Further, the Commission 
intends to exercise its general enforcement powers under section 303 of 
the Act by imposing appropriate sanctions against noncomplying Guard 
Band Managers, and, where warranted, revoking licenses pursuant to 
section 312 of the Act, for violations of the Act or Commission 
regulations committed by the Guard Band Manager or third-party users of 
its licensed spectrum. Finally, the Commission emphasizes that third-
party spectrum users who violate the Commission's rules or other 
federal laws are subject to forfeitures under section 503 of the 
Communications Act, other administrative sanctions, and criminal 
prosecution.
    12. Rules Governing Guard Band Manager Licenses. Concerns regarding 
the Guard Band Manager's ability to manage the spectrum in the best 
interest of prospective eligible users can be addressed by Commission 
rules that will govern both the Guard Band Manager's operations and its 
contractual relationships with third-party users. Commenters suggested 
a number of terms and conditions that might be included in written 
agreements between Guard Band Managers and their customers. With 
respect to many of the contractual terms and conditions suggested in 
the comments, the Commission elects not to incorporate them in its 
service rules, but rather to leave to the Guard Band Manager's 
discretion the decision whether such terms and conditions are necessary 
in the prudent structuring of the Guard Band Manager-customer 
relationship. Consistent with its decision to afford licensees in the 
746-764 MHz and 776-794 MHz bands maximum practicable flexibility in 
the use of this spectrum, the Commission will not encumber Guard Band 
Managers with numerous regulations at this time. The Commission will, 
however, closely monitor how Guard Band Managers carry out their 
spectrum management responsibilities and will impose more detailed 
rules of general applicability if presented with evidence of specific 
conduct that would warrant imposition of such rules.
    13. The Guard Band Manager will contractually provide customers the 
right to use certain frequencies in its service area, as identified in 
the contract. The duration of spectrum user agreements may vary; 
however, no agreement may extend beyond the term of the Guard Band 
Manager's FCC authorization. The Guard Band Manager may enter into 
contingent agreements providing any spectrum user with an option or 
right to renew its agreement if the Guard Band Manager is able to renew 
its authorization on similar terms and conditions with the Commission. 
The Commission will also require Guard Band Manager agreements to 
detail the operating parameters of the spectrum user's system, 
including power, maximum antenna heights, frequencies of operation, 
base station location(s), area(s) of operation, and other parameters as 
appropriate.
    Additionally, the spectrum user must agree to operate its system in 
compliance with all technical specifications for the system consistent 
with Commission policy, and must use FCC-approved equipment where 
appropriate. Guard Band Managers will also be required to include 
provisions in their agreements that the spectrum user complete post-
construction proofs of system performance prior to system activation.
    14. Guard Band Manager contracts must include provisions that apply 
all existing licensee obligations to the spectrum user. The spectrum 
user must agree to comply with all applicable Commission rules, and 
accept FCC oversight and enforcement consistent with the Guard Band 
Manager's license. Guard Band Managers also must include provisions in 
their contracts obligating the spectrum user to cooperate fully with 
any investigation or inquiry conducted by either the Commission or the 
Guard Band Manager. In the event

[[Page 17597]]

that the Guard Band Manager has knowledge or reason to believe that its 
customer has committed a violation of the Commission's rules, or that 
the customer's system is causing harmful interference with other 
systems, the Guard Band Manager will have the right to conduct onsite 
inspections of all transmission facilities. If the Guard Band Manager 
determines that there is an ongoing violation of the Commission's rules 
or that the customer's system is causing harmful interference, the 
Guard Band Manager shall have the right to suspend or terminate the 
operation of the system, or take other measures to resolve the 
interference until the situation can be remedied. Third-party spectrum 
user agreements must also stipulate that if the customer refuses to 
comply with a suspension or termination order, the Guard Band Manager 
will be free to use all legal means necessary to enforce the order. 
Finally, Guard Band Managers will be required to maintain their written 
agreements with spectrum users at their principal place of business, 
and to retain these records for at least two years after the date such 
agreements expire. These records must be kept current and be made 
available upon request for inspection by the Commission or its 
representatives.
    15. In the event that there is a dispute between a Guard Band 
Manager and one of its customers, or among multiple customers of the 
same Guard Band Manager, the Commission expects such disputes to be 
resolved by the Guard Band Manager in the same manner as would be used 
by the parties to resolve other commercial disputes arising under the 
contract. The Commission will consider any complaints filed against a 
Guard Band Manager for violating the Act or the Commission's policies. 
The Commission will resolve such complaints pursuant to its authority 
granted in sections 308(b) and 309(d) of the Act. With respect to 
disputes between non-contracting parties and a Guard Band Manager or 
the Guard Band Manager's customers, when the Guard Band Manager is 
unable or unwilling to resolve such disputes in a timely fashion, the 
aggrieved party may file a complaint with the Commission, to ensure 
that the Guard Band Manager and its customers are complying with the 
requirements of the Act, Commission rules, and the terms of the Guard 
Band Manager license. However, the Commission expects Guard Band 
Managers to coordinate use of their licensed frequencies carefully to 
ensure that their customers do not interfere with public safety or 
other licensees on adjacent channels.
    16. Regulatory Status. Because the Guard Band Manager licensee will 
act only as a spectrum broker and not as a wireless service provider, 
it will not be a carrier of any type. Accordingly, as licensed in the 6 
megahertz block of the 700 MHz band, the Guard Band Manager will not be 
a common carrier as defined in section 3 of the Communications Act. 
Consistent with the Commission's decision to amend Form 601 to allow 
licensees in the 30 megahertz block to designate the regulatory status 
of the services they provide, the Commission has also amended item 35 
of the Form 601 to add the Guard Band Manager classification.
    17. Although Guard Band Managers will not provide services 
regulated as Commercial Mobile Radio Services (CMRS), they may lease 
their spectrum to customers that will provide CMRS and that will be 
required to comply with Commission rules applicable to CMRS providers. 
CMRS provided on the Guard Bands will not count against the 45/55 
megahertz spectrum cap.
    18. Eligibility and Use Restrictions. The Commission will assign 
licenses in the Guard Bands exclusively to Guard Band Managers. The 
Commission will not impose restrictions on the types of entities that 
may be licensed as Guard Band Managers. Instead it adopts certain basic 
requirements for Guard Band Managers that will further the Commission's 
objective of making the Guard Band Manager spectrum available to a wide 
range of users.
    19. The Commission believes that assigning licenses in the 6 
megahertz Guard Bands solely to Guard Band Managers will be the most 
efficient and effective way to manage spectrum that is subject to 
commercial uses for the protection of public safety licensees in the 
adjacent bands. Thus, the purpose of the Guard Band Manager will be to 
lease spectrum to third party, and in doing so, to manage the spectrum 
efficiently in a manner that also protects adjacent public safety bands 
from interference. Guard Band Managers will have a financial incentive 
to coordinate use of their frequencies to ensure non-interference. 
Guard Band Managers may subdivide their spectrum and make it available 
to end users for private internal use, or to service providers that may 
provide common carrier or non-common carrier services to their 
customers. A Guard Band Manager may also aggregate the various demands 
for spectrum within its service area to meet the unique needs of that 
service area. The Commission is currently considering innovative 
assignment mechanisms that enable parties to more easily aggregate and 
disaggregate spectrum for alternative uses, and the Guard Band Manager 
approach adopted in the Second R&O can potentially be an important step 
in that direction.
    20. Guard Band Managers will be permitted to lease some of their 
licensed spectrum to affiliated entities for the affiliate's own 
internal use or for its provision of commercial or private radio 
services. However, to ensure that the Commission conducts a useful test 
of the Band Manager concept and obtains the full benefits of this new 
licensing approach, a core feature of which is leasing spectrum to 
third parties, Guard Band Managers will be required to lease the 
predominant amount of their spectrum to non-affiliates. The Commission 
also provides Guard Band Managers with a ``safe harbor'' example of 
compliance with this requirement. To take advantage of this ``safe 
harbor,'' a Guard Band Manager must lease no more than 49.9 percent of 
its licensed spectrum in a geographic service area to its affiliates. 
For the purpose of measuring the percent of spectrum leased under this 
rule, if a Guard Band Manager leases spectrum to an affiliate covering 
any portion of the defined geography of the service area, that spectrum 
will be considered to be leased to the affiliate.
    21. The Commission clarifies that among those that may be licensed 
as Guard Band Managers in the Guard Bands are entities in the critical 
infrastructure industries--entities that utilize private communications 
systems to support their commercial operations. The critical 
infrastructure industries are not eligible for licensing in the 24 
megahertz of spectrum allocated for public safety service providers. 
The Commission finds nothing in the language of section 337 or its 
legislative history that indicates Congress intended to treat the 
critical infrastructure industries differently from other commercial 
entities by excluding them from both the 24 megahertz of public safety 
spectrum and the 36 megahertz of commercial spectrum.
    22. In the Second R&O the Commission considers whether to limit the 
number of channel blocks in a geographic service area that may be 
licensed to a Guard Band Manager. The Commission determines that, for 
the first auction of licenses in the 6 megahertz block, it will limit 
an entity and its affiliates to holding only one of the two Guard Band 
Manager licenses that will be available in a geographic service area. 
However, if any Guard Band Manager licenses remain unsold after the 
first auction, the Commission

[[Page 17598]]

intends to lift this ``one-to-a-market'' rule in any subsequent 
auctions in this band. Limiting the number of Guard Band Manager 
licenses that one entity may hold will provide the Commission with an 
ability to benchmark one Guard Band Manager against another serving the 
same geographic area.
    23. The Commission anticipates that the competitive environment in 
which Guard Band Managers will operate will serve to constrain them 
from unreasonably restricting access to their spectrum. However, some 
general safeguards are appropriate for at least an initial period. The 
Commission expects Guard Band Managers to not engage in unjust or 
unreasonable discrimination among spectrum users and to honor all 
reasonable requests by potential users for access to the licensed 
spectrum. The Commission nevertheless recognizes that the number of 
users that can be granted exclusive use of a Guard Band Manager's 
channels will be limited. The Commission also recognizes that a Guard 
Band Manager may have valid business reasons for denying a potential 
user's request for spectrum. For example, denial of a request for 
spectrum might be reasonable when the request, if granted, would 
preclude the Guard Band Manager from entering into an agreement with 
another user needing coverage of a wider geographic area for a longer 
period of time.
    24. Because the Guard Band Manager license is a new concept and we 
cannot predict the type or amount of demand that will exist for 
spectrum licensed in this manner, the Commission finds it appropriate 
to provide Guard Band Managers with a considerable amount of latitude 
to develop methods and procedures for determining the most efficient 
way to apportion their spectrum among prospective users. The Commission 
believes Guard Band Managers should be free to enter into as many user 
agreements as they determine to be feasible given the capacity and 
other technical limits on use of their spectrum, market demand, and the 
varied needs of their users for different amounts of spectrum for 
different periods of time. For this reason, the Commission is not 
imposing specific requirements on the number of users that must be 
provided access to their spectrum.
    25. The Commission also recognizes the potential for Guard Band 
Managers to impose unnecessary conditions or restrictions on their 
spectrum users, which may have anticompetitive impacts on those 
entities with whom the Guard Band Manager is in competition. Therefore, 
it adopts a rule prohibiting Guard Band Managers from imposing unduly 
restrictive requirements on use of its licensed frequencies. A 
requirement is unduly restrictive if it is not reasonably related to 
the efficient management of the spectrum licensed to the Guard Band 
Manager. Requirements that are reasonably related to the Guard Band 
Manager's spectrum management responsibilities are those that are 
necessary to ensure efficient spectrum use or ensure compliance with 
the Commission's rules, including those rules pertaining to field 
strength limits, power and antenna height limits, interference, 
emission limits, and radiofrequency (RF) safety requirements. For 
example, the Commission would consider it unduly restrictive for a 
Guard Band Manager to require a spectrum user to purchase 
telecommunications equipment only from one manufacturer or vendor, to 
require use of a particular technology, or to impose operating rules 
that would have the same practical effect. The Commission will consider 
any complaints filed against a Guard Band Manager for unreasonably 
denying access to its spectrum or imposing unreasonable terms and 
conditions on third-party service providers or end users, pursuant to 
its authority granted in sections 308(b) and 309(d) of the 
Communications Act.
    26. The Commission is prepared to impose additional constraints if 
it receives complaints indicating that Guard Band Managers are unfairly 
denying access to spectrum, or imposing unreasonable terms and 
conditions on its use, thereby undermining the Commission's objectives 
in licensing Guard Band Managers. Conversely, the Commission is 
prepared to lift these requirements if experience with the Guard Band 
Manager licensing approach proves them unnecessary.
    27. Size of Service Areas for Geographic Area Licensing. The 
Commission will auction licenses for both the 2 megahertz and the 4 
megahertz Guard Bands on the basis of 52 Major Economic Areas (MEAs), 
rather than Economic Areas (EAs) as proposed by some commenters. The 
use of MEAs will facilitate greater participation in the auction, and 
allow a larger number and more diverse pool of Guard Band Managers, 
than larger regional or nationwide licensing areas, while 
simultaneously giving medium-sized and larger companies the flexibility 
to aggregate spectrum to put together regional and nationwide licenses 
tailored to their particular business needs.
    28. License Term; Renewal Expectancy. The Commission adopts a 
license term for the Guard Bands that extends to January 1, 2015. This 
is eight years beyond the date as of which incumbent broadcasters are 
required to have relocated to other portions of the spectrum. The 
Commission also adopts for Guard Band licenses the right to a renewal 
expectancy established in Sec. 27.14(b) of the Commission's rules. In 
the event that a Guard Band license is partitioned or disaggregated, 
any partitionee or disaggregatee is authorized to hold its license for 
the remainder of the original licensee's term, and the partitionee or 
disaggregatee may obtain a renewal expectancy on the same basis as 
other licensees in the band. Guard Band licensees meeting the 
substantial service requirement discussed herein will be deemed to have 
met this element of the renewal expectancy requirement.
    29. Performance Requirements. In establishing the Guard Band 
Manager as a new class of licensee, the Commission will require Guard 
Band Managers to provide ``substantial service'' to their service areas 
no later than January 1, 2015. The Commission will not impose other 
build-out requirements or channel usage requirements. In lieu of these 
more stringent requirements, the Commission is imposing a reporting 
requirement. Guard Band Managers may avail themselves of either of the 
following ``safe harbors'' for the Guard Bands. A Guard Band Manager 
can satisfy the substantial service requirement by leasing the 
predominant amount of its licensed spectrum in at least 50 percent of 
the geographic area covered by its license at the license-renewal mark. 
A Guard Band Manager can also satisfy the substantial service 
requirement by providing coverage to 50 percent of the population of 
the Guard Band Manager's service area at the license-renewal mark. 
These ``safe harbor'' examples are intended to provide Guard Band 
Managers a degree of certainty regarding how to comply with the 
substantial service requirement. The requirement can be met in other 
ways, which will vary depending on the market and type of spectrum 
users served, and the Commission will review licensees' showings on a 
case-by-case basis.
    30. The Commission will, however, reserve the right to review its 
service rules and impose more stringent performance requirements on 
Guard Band Managers in the future if it receives complaints from 
prospective users or determines that reassessment is warranted because 
spectrum is being anticompetitively warehoused or is otherwise not 
being made available despite existing demand. To facilitate

[[Page 17599]]

such review, the Second R&O adopts an annual reporting requirement that 
will obligate Guard Band Managers to provide the Commission with 
information about the manner in which their spectrum is being utilized. 
Guard Band Managers will be required to supply the Commission with 
basic information about the total number of users and the number of 
those users that are affiliates of the Guard Band Manager; the amount 
of spectrum being used by the Guard Band Manager's affiliates in any 
part of the licensed service area and the amount of spectrum being used 
pursuant to agreements with unaffiliated third parties; the general 
nature of its customers' spectrum use; and the length of the term of 
each user agreement. To minimize the burden placed on Guard Band 
Managers by this reporting requirement, the Commission anticipates 
collecting this information electronically, through the Universal 
Licensing System. The specific information that Guard Band Managers 
will provide and the procedures that Guard Band Managers will follow in 
filing this annual report will be announced in a subsequent Public 
Notice to be issued by the Wireless Telecommunications Bureau. The 
Commission will make this information available to the public in order 
to enhance prospective users' ability to determine the availability of 
frequencies in their service areas that will meet their needs. The 
Commission also reserves the authority to subject Guard Band Managers 
to audits using in-house and contract resources.
    31. Disaggregation and Partitioning of Licenses. Guard Band 
Managers will be allowed to partition their service areas and to 
disaggregate their spectrum to any entity that would otherwise be 
eligible to hold an authorization as a Guard Band Manager for this 
spectrum. Licensees seeking to partition and disaggregate are required 
to obtain Commission authorization for partial assignment of their 
license. In reviewing requests for approval of partitioning and 
disaggregation, the Commission will consider the impact that such 
partitioning or disaggregation would have on public safety operations 
in the adjacent 700 MHz bands. Additionally, the partitioning licensee 
must include with its request a description of the partitioned service 
area and calculations of the population of the partitioned service area 
and the licensed geographic service area, and will be subject to the 
provisions against unjust enrichment set forth in Sec. 27.15(c) of the 
Commission's rules.
    32. The Commission will also allow partitioning Guard Band Managers 
to choose between two options for satisfying the performance 
requirement in Sec. 27.14 of the Commission's rules. 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 Guard Band Manager fails to meet its 
substantial service requirement during the relevant license term, the 
non-performing Guard Band Manager's authorization will be subject to 
cancellation at the end of the license term. Under the second option, 
the partitioner can certify 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, only its license will be subject to cancellation 
at the end of the license term; the partitionee's license will not be 
affected by the failure.
    33. In addition, parties to disaggregation agreements may choose 
between two options for satisfying the performance requirement. Under 
the first option, the disaggregator and disaggregatee would certify 
that they will share responsibility for meeting the performance 
requirement for the entire geographic service area. If the parties 
choose this option, both parties jointly will be required to meet the 
substantial service requirement at the end of the relevant license 
term, and both Guard Band Manager licenses will be subject to 
cancellation, if the requirement is not met. The second option allows 
the parties to agree that either the disaggregator or the disaggregatee 
will be responsible for meeting the substantial service requirement for 
the geographic service area. If the parties choose this option, and the 
Guard Band Manager responsible for meeting the performance requirement 
fails to do so, only the license of the non-performing Guard Band 
Manager will be subject to cancellation.
    34. Public Notice of Initial Applications; Petitions to Deny. 
Sections 309(b) and 309(c) of the Communications Act require public 
notice for initial applications for authorizations in, inter alia, the 
broadcasting or common carrier services, and substantial amendments 
thereof. The administrative procedures for spectrum auctions adopted in 
section 3008 of the Balanced Budget Act of 1997 and the Consolidated 
Appropriations Act permit the Commission to shorten notice periods in 
the auction context to five days for petitions to deny and seven days 
for public notice, notwithstanding the provisions of section 309(b) of 
the Communications Act. The Commission exercises its authority under 
section 309(b)(2)(F) and adopts a seven-day notice requirement for 
initial applications for Guard Band Manager licenses and a five-day 
period for petitions to deny such applications.
    35. Foreign Ownership Restrictions. Section 310(a) of the 
Communications Act prohibits any foreign government or representative 
from holding a station license. Section 310(b) prohibits certain 
defined ownership interests in broadcast, common carrier, aeronautical 
en route or aeronautical fixed radio station licenses. The Commission 
determines that Sec. 27.12 of the Commission's rules regarding foreign 
ownership will apply to applicants for Guard Band licenses. Because the 
Guard Band Manager is a non-common carrier, an applicant requesting 
authorization for a Guard Band Manager license will be subject to 
section 310(a) but not to the additional prohibitions of section 
310(b). With respect to the Commission's alien ownership reporting 
requirements, applicants for the Guard Band spectrum must file changes 
in foreign ownership information to the extent required by part 27 of 
the Commission's rules.
    36. Applicability of General Common Carrier Obligations. Based on 
the Commission's conclusions set forth in the First R&O, and on its 
assessment that the decisions adopted therein are appropriate for 
application to the Guard Bands, the Commission adopts for the Guard 
Bands the forbearance measures discussed in the First R&O with respect 
to tariff and contract filings, interlocking directors, new and 
discontinued facilities, service provider local number portability, 
section 226 of the Communications Act, franks, and pro forma transfer 
applications.
    37. The Commission also adopts the provisions of Sec. 27.66 of its 
rules for operations on the Guard Bands. Section 27.66 tracks the 
provisions of Sec. 63.71, requiring a common carrier voluntarily 
discontinuing, reducing or impairing service to provide notice to 
affected customers and the Commission and providing for the automatic 
grant of a fixed service common carrier's application for 
discontinuance after 31 days. In the case of Guard Band operations, 
this notice to the Commission must be provided by the Guard Band 
Manager. If a non-common carrier voluntarily discontinues, reduces, or 
impairs service, Sec. 27.66 requires the carrier to give written notice 
to the Commission within seven days. In the case of Guard Band 
operations, this notice to the Commission, as well, must be provided

[[Page 17600]]

by the Guard Band Manager. A mere change in common carrier or non-
common carrier status does not constitute a ``discontinuance.'' If 
fixed service common carrier operations are involuntarily discontinued, 
reduced, or impaired for a period exceeding 48 hours, the Guard Band 
Manager must promptly notify the Commission, in writing, of the reasons 
for the discontinuance, reduction, or impairment of service, including 
a statement indicating when normal service is to be resumed. When 
normal service is resumed, the Guard Band Manager must promptly notify 
the Commission. The Commission continues to invite suggestions on ways 
to alleviate or streamline regulations that would otherwise be 
applicable to fixed services provided on this spectrum.
    38. Equal Employment Opportunity. Because the Commission's Equal 
Employment Opportunity (EEO) rules are service-specific, a Guard Band 
user's EEO requirements will depend on the type of service it chooses 
to provide. FCC Form 601, as amended, identifies five regulatory 
statuses: (a) Common carrier, (b) non-common carrier, (c) private, 
internal communications, (d) broadcast, and (e) Band Manager. However, 
Guard Band users do not file FCC Form 601, because they are not 
licensees. Nevertheless, these operators will be subject to such EEO 
requirements as the nature of the services they provide dictates.
    39. Other Technical Rules. The Commission adopts a field strength 
limit for the Guard Bands of 40 dBu/m to control in-band interference. 
However, users in adjoining areas may agree to alternate field 
strengths at their common border. The predicted 40 dBu/m field strength 
shall be calculated using figure 10 in 47 CFR 73.699 with a correction 
factor for antenna height differential of -9 dB.
    40. The Commission adopts a threshold of 1000 w ERP for categorical 
exclusion from routine evaluation for RF radiation exposure for base 
and fixed stations in the Guard Bands. The threshold for routine 
evaluation of mobile devices for RF safety purposes will be 1.5 w or 
greater, in conformance with Sec. 2.1091. For portable devices in the 
Guard Bands, the Commission adopts a maximum power limit of 3 w ERP 
with the provision that these devices be evaluated for RF exposure in 
compliance with Sec. 2.1093. The Commission is providing guidance on 
acceptable methods of evaluating compliance with the Commission's RF 
exposure limits in OET Bulletin No. 65, which has replaced OST Bulletin 
No. 65.
    41. The Commission adopts the following power limits for the Guard 
Bands:
    (i) For base stations and fixed stations operating in the 746-747 
MHz and 762-764 MHz bands, an ERP no greater than 1,000 watts and an 
antenna height above average terrain (HAAT) no greater than 305 m;
    (ii) For mobile, fixed, and control stations operating in the 776-
777 MHz and 792-794 MHz bands, an ERP no greater than 30 watts; and
    (iii) For portable stations operating in the 776-777 MHz and 792-
794 MHz bands, an ERP no greater than 3 watts.
    42. The second harmonic transmissions of Guard Band services that 
will be operating on TV channels 65 and 67 fall within a band used for 
radionavigation in the Global Navigation Satellite System (GNSS), which 
includes the Global Positioning System (GPS) at 1563.42-1587.42 MHz. 
The Commission therefore adopts the following out-of-band-emissions 
limits for all spurious emissions, including harmonics, that fall 
within the 1559-1610 frequency range, from equipment operating in the 
746-747 MHz, 762-764 MHz, 776-777 MHz and 792-794 MHz Guard Bands:
    (i) For wideband emissions, -70 dBW/MHz equivalent isotropically 
radiated power (EIRP); and
    (ii) For discrete emissions of less than 700 Hz bandwidth, an 
absolute EIRP limit of -80 dBW. Outside of emissions into the 1559-1610 
MHz RNSS band, the out of band emission standards adopted in section 
III.A.1 of the Second R&O will apply.
    43. Competitive Bidding. In light of the accelerated schedule for 
auction of the 746-764 MHz and 776-794 MHz bands the Commission 
believes that it should not use, combinatorial bidding for the auction 
of licenses in these bands. Consistent with its decision in the First 
R&O, the Commission will not prohibit any entities from participating 
in the auction of licenses for the Guard Bands.
    44. Also consistent with its decision in the First R&O, the 
Commission will use for the Guard Bands the competitive bidding 
procedures contained in subpart Q of part 1 of the Commission's rules, 
including any amendments adopted in the ongoing part 1 proceeding. 
However, to facilitate the Commission's compliance with its statutory 
obligation to deposit the proceeds from the auction in the Treasury by 
September 30, 2000, the Commission delegates to the Wireless 
Telecommunications Bureau authority to suspend the payment deadlines in 
Secs. 1.2107(b) and 1.2109(a) of the Commission's rules and require 
that winning bidders on all licenses in the 700 MHz bands pay the full 
balance of their winning bids upon submission of their long-form 
applications pursuant to Sec. 1.2107(c) of the Commission's rules.
    45. The Commission adopts for the Guard Bands the same definitions 
of small and very small businesses that it adopted for the 747-762 MHz 
and 777-792 MHz bands in the First R&O in this proceeding. A small 
business is defined as an entity with average annual gross revenues for 
the three preceding years not in excess of $40 million, and a very 
small business is defined as an entity with average annual gross 
revenues for the three preceding years not in excess of $15 million. In 
calculating gross revenues for purposes of small business eligibility, 
the Commission will attribute the gross revenues of the applicant, its 
controlling interests and its affiliates. For the auction of licenses 
for the Guard Bands, the Commission also adopts tiered bidding credits 
for small and very small businesses. Accordingly, small businesses will 
receive a 15 percent bidding credit. Very small businesses will receive 
a 25 percent bidding credit.
    46. The Commission declines to adopt special preferences for 
entities owned by minorities or women. The Commission believes the 
bidding credits adopted in this Second R&O for small businesses will 
further Congress's objective of disseminating licenses among a wide 
variety of applicants because many minority- and women-owned entities, 
as well as rural telephone companies, are small businesses and will 
therefore qualify for these special provisions. The Commission also 
declines to provide bidding credits to LPTV licensees or state and 
local governments seeking spectrum for public safety communications.
    47. Protection of Television Services. In order to protect analog 
and TV and DTV operations during the DTV transition period, the 
Commission extends the protection criteria applicable to 30 megahertz 
spectrum operations to operations in the Guard Bands. Thus, Sec. 27.60, 
as amended, requires 700 MHz commercial operations, including those in 
the Guard Bands, to comply with the provisions of Sec. 90.545 of the 
Commission's rules. The Congressional plan set forth in sections 336 
and 337 of the Act and in the 1997 Budget Act is to transition this 
spectrum from its current use for broadcast services to commercial use 
and public safety services. Congress also has

[[Page 17601]]

directed the Commission to auction the 36 megahertz of spectrum for 
commercial use six years before the relocation deadline for incumbent 
broadcasters in this spectrum, while adopting interference limits and 
other technical restrictions necessary to protect full-service analog 
television service during the transition to DTV. The extended license 
term specified for 700 MHz commercial services on these bands reflects, 
in part, the recognition that incumbent television licensees on these 
frequencies may, under the statutory provision for DTV transition, 
continue to broadcast for some years, delaying the time when new users 
have uncompromised use of the spectrum resource.
    48. In addition, the Commission indicated in the First R&O that it 
will consider specific regulatory requests needed to implement 
voluntary agreements reached between incumbent licensees and new users 
in these bands, and it extends that policy to Guard Band operations.
    49. Canadian and Mexican Border Regions. There are currently 
separate agreements with Canada and Mexico covering TV broadcast use of 
the UHF 470-806 MHz band. Such agreements do not reflect the additional 
use or services being adopted in the First R&O in this proceeding and 
in this Second R&O. While the Commission staff has been involved in 
discussions with both countries regarding coordination or interference 
criteria for the use of these bands in the border areas for the 
additional services, agreements have yet to be reached. Therefore, 
until such agreements have been finalized, the Commission believes it 
necessary to adopt certain interim requirements for operations in the 
Guard Bands along the Canada and Mexico borders. Accordingly, licenses 
issued for these bands within 120 km of the borders will be subject to 
whatever future agreements the United States develops with these two 
countries. In that the existing agreements for the protection of TV 
stations in these countries are still in effect and must be recognized 
until they are replaced or modified to reflect the new uses, licenses 
in the border areas will be granted on the condition that harmful 
interference may not be caused to, but must be accepted from, UHF TV 
transmitters in Canada and Mexico. Furthermore, modifications may be 
necessary to comply with whatever provisions are ultimately specified 
in future agreements with Canada and Mexico regarding the use of these 
bands. Pending further negotiations, the Second R&O also adopts the 
protection criteria described in this Second R&O for domestic TV and 
DTV stations as interim criteria for Canadian and Mexican TV and DTV 
stations.
    50. Procedural Matters. The Second R&O contains new and modified 
information collections. The actions contained in this Second R&O are, 
however, exempt from the provisions of the Paperwork Reduction Act of 
1995, under the Consolidated Appropriations statute, See Consolidated 
Appropriations, Appendix E, Sec. 213. See also 145 Cong. Rec. at 
H12493-94 (November 17, 1999). Implementation of the revisions to part 
27 required to assign licenses in these commercial spectrum bands, 
including revisions to information collections, are therefore not 
subject to approval by the Office of Management and Budget, and became 
effective upon adoption. Similarly, the Consolidated Appropriations 
statute exempts this decision from the Regulatory Flexibility Act 
provisions and from the Contract With America Advancement Act 
provisions.
    51. Authority Citation and Ordering Clauses. This action is taken 
pursuant to sections 1, 4(i), 7, 10, 201, 202, 208, 214, 301, 303, 307, 
308, 309(j), 309(k), 310, 311, 324, 332 and 336 and 337 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 157, 
160, 201, 202, 208, 214, 301, 303, 307, 308, 309(j), 309(k), 310, 311, 
324, 332, and 336, and 337 and the Consolidated Appropriations Act, 
2000, Public Law 106-113, 113 Stat. 1501, section 213.
    52. Part 27 of the Commission's Rules is amended to establish 
service rules for the 746-747/ 776-777 MHz and 762-764/ 792-794 MHz 
bands, as set forth in this synopsis. In accordance with section 213 of 
the Consolidated Appropriations Act, 2000, Public Law 106-113, 113 
Stat. 1501 (1999), these rules shall be effective April 4, 2000.
    53. Further, pursuant to 47 U.S.C. 155(c), the Chief of the 
Wireless Telecommunications Bureau is granted delegated authority to 
implement and modify auction procedures in the Wireless Communications 
Services, including the general design and timing of the auction, the 
number and grouping of authorizations to be offered in any particular 
auction, the manner of submitting bids, the amount of any minimum 
opening bids and bid increments, activity and stopping rules, and 
application and payment requirements, including the amount of upfront 
payments, and to announce such procedures by Public Notice.
    54. Finally, pursuant to 47 U.S.C. 155(c), the Chief of the 
Wireless Telecommunications Bureau is granted delegated authority to 
suspend the payment deadlines in Secs. 1.2107(b) and 1.2109(a) of the 
Commission's rules, 47 CFR 1.2107(b), 1.2109(a), and require that 
winning bidders on all licenses in the 746-764 and 776-794 MHz bands 
pay the full balance of their winning bids upon submission of their 
long-form applications pursuant to Sec. 1.2107(c) of the Commission's 
rules, 47 CFR 1.2107(c).

List of Subjects in 47 CFR Part 27

    Guard band managers, Radio, Reporting and recordkeeping 
requirements, Telecommunications.
Federal Communications Commission.

Magalie Roman Salas,
Secretary.

Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 27 as follows:
    1. The authority citation for part 27 continues to read as follows:

    Authority: 47 U.S.C. 154, 301, 302, 303, 307, 309, 332, 336, and 
337 unless otherwise noted.

PART 27--MISCELLANEOUS WIRELESS COMMUNICATIONS SERVICES

    2. Section 27.1 is amended by revising paragraph (b)(2) to read as 
follows:


Sec. 27.1  Basis and purpose.

* * * * *
    (b) * * *
    (2) 746-764 MHz and 776-794 MHz.
* * * * *

    3. Section 27.2 is amended by redesignating paragraph (b) as 
paragraph (c), revising paragraph (a), and adding a new paragraph (b) 
to read as follows:


Sec. 27.2  Permissible communications.

    (a) Miscellaneous wireless communications services. Except as 
provided in paragraph (b) of this section and subject to technical and 
other rules contained in this part, a licensee in the frequency bands 
specified in Sec. 27.5 may provide any services for which its frequency 
bands are allocated, as set forth in the non-Federal Government column 
of the Table of Allocations in Sec. 2.106 of this chapter (column 5).
    (b) 746-747 MHz, 776-777 MHz, 762-764 MHz and 792-794 MHz bands. 
Operators in the 746-747 MHz, 776-777 MHz, 762-764 MHz and 792-794 MHz 
bands may not employ a cellular system architecture. A cellular system 
architecture is defined, for purposes of this part, as one that 
consists of many small areas or cells (segmented from a larger 
geographic service area), each of

[[Page 17602]]

which uses its own base station, to enable frequencies to be reused at 
relatively short distances.
* * * * *

    4. Section 27.4 is amended by adding a new definition for 
``affiliate,'' and ``guard band manager'' in alphabetical order to read 
as follows:


Sec. 27.4  Terms and definitions.

    Affiliate. This term shall have the same meaning as that for 
``affiliate'' in part 1, Sec. 1.2110(b)(4) of this chapter.
* * * * *
    Guard band manager. The term Guard band manager refers to a 
commercial licensee in the 746-747 MHz, 762-764 MHz, 776-777 MHz, and 
792-794 MHz bands that functions solely as a spectrum broker by 
subdividing its licensed spectrum and making it available to system 
operators or directly to end users for fixed or mobile communications 
consistent with Commission Rules. A Guard band manager is directly 
responsible for any interference or misuse of its licensed frequency 
arising from its use by such non-licensed entities.
* * * * *

    5. Section 27.5 is amended by revising paragraphs (b)(1) and (b)(2) 
to read as follows:


Sec. 27.5  Frequencies.

* * * * *
    (b) * * *
    (1) Two paired channels of 1 megahertz each are available for 
assignment solely to Guard band managers. Block A: 746-747 MHz and 776-
777 MHz.
    (2) Two paired channels of 2 megahertz each are available for 
assignment solely to Guard band managers. Block B: 762-764 MHz and 792-
794 MHz.
* * * * *

    6. Section 27.6 is amended by revising paragraph (b)(1) to read as 
follows:


Sec. 27.6  Service areas.

* * * * *
    (b) * * *
    (1) Service areas for Block A in the 746-747 and 776-777 MHz bands 
and Block B in the 762-764 and 792-794 MHz bands are based on Major 
Economic Areas (MEAs), as defined in paragraph (a)(1) of this section.
* * * * *

    7. Section 27.10 is amended by adding the introductory text to read 
as follows:


Sec. 27.10  Regulatory status.

    Except with respect to Guard band manager licenses, which are 
subject to subpart G of this part, the following rules apply concerning 
the regulatory status of licensees in the frequency bands specified in 
Sec. 27.5.
* * * * *

    8. Section 27.12 is revised to read as follows:


Sec. 27.12  Eligibility.

    Except as provided in Sec. 27.604 any entity other than those 
precluded by section 310 of the Communications Act of 1934, as amended, 
47 U.S.C. 310, is eligible to hold a license under this part.

    9. Section 27.13 is amended by revising paragraph (b) to read as 
follows:


Sec. 27.13  License period.

* * * * *
    (b) 746-764 MHz and 776-794 MHz bands. Initial authorizations for 
the 746-764 MHz and 776-794 MHz bands, will extend until January 1, 
2015, except that a part 27 licensee commencing broadcast services, 
will be required to seek renewal of its license for such services at 
the termination of the eight-year term following commencement of such 
operations.

    10. Section 27.50 is amended by redesignating paragraph (a) as 
paragraph (b) and paragraph (b) as paragraph (a), revising newly 
redesignated paragraph (b) and revising the heading to the table in 
paragraph (c) to read as follows:


Sec. 27.50  Power limits.

* * * * *
    (b) The following power and antenna height limits apply to 
transmitters operating in the 746-764 MHz and 776-794 MHz bands:
    (1) Fixed and base stations transmitting in the 746-764 MHz band 
must not exceed an effective radiated power (ERP) of 1000 watts and an 
antenna height of 305 m height above average terrain (HAAT), except 
that antenna heights greater than 305 m HAAT are permitted if power 
levels are reduced below 1000 watts ERP in accordance with Table 1 of 
this section;
    (2) Fixed, control, and mobile stations transmitting in the 776-794 
MHz band are limited to 30 watts ERP;
    (3) Portable stations (hand-held devices) transmitting in the 776-
794 MHz band are limited to 3 watts ERP;
    (c) * * *
Table 1--Permissible Power and Antenna Heights for Base and Fixed 
Stations in the 746-764 MHz Band
* * * * *

    11. Section 27.53 is amended by redesignating paragraphs (e) and 
(f) as paragraphs (f) and (g), revising newly redesignated paragraph 
(f) and adding a new paragraph (e) to read as follows:


Sec. 27.53  Emission limits.

* * * * *
    (e) For operations in the 746-747 MHz, 762-764 MHz, 776-777 MHz, 
and 792-794 MHz bands, transmitters must meet the following emission 
limitations:
    (1) The adjacent channel coupled power (ACCP) requirements for 
transmitters designed for various channel sizes are shown in the 
following tables. Mobile station requirements apply to handheld, car 
mounted and control station units. The tables specify a maximum value 
for the ACCP relative to maximum output power as a function of the 
displacement from the channel center frequency. In addition, the ACCP 
for a mobile station transmitter at the specified frequency 
displacement must not exceed the value shown in the tables. For 
transmitters that have power control, the latter ACCP requirement can 
be met at maximum power reduction. In the following charts, ``(s)'' 
means that a swept measurement is to be used.

                                  6.25 kHz Mobile Transmitter ACCP Requirements
----------------------------------------------------------------------------------------------------------------
                                                  Measurement
      Offset from center frequency (kHz)           bandwidth     Maximum ACCP      Maximum ACCP absolute (dBm)
                                                     (kHz)      relative (dBc)
----------------------------------------------------------------------------------------------------------------
6.25..........................................            6.25             -40  not specified
12.50.........................................            6.25             -60  -45
18.75.........................................            6.25             -60  -45
25.00.........................................            6.25             -65  -50
37.50.........................................           25.00             -65  -50
62.50.........................................           25.00             -65  -50
87.50.........................................           25.00             -65  -50

[[Page 17603]]

 
150.00........................................          100.00             -65  -50
250.00........................................          100.00             -65  -50
>400 to receive band..........................           30(s)             -75  -55
In the receive band...........................           30(s)            -100  -70
----------------------------------------------------------------------------------------------------------------


                                  12.5 kHz Mobile Transmitter ACCP Requirements
----------------------------------------------------------------------------------------------------------------
                                                  Measurement
      Offset from center frequency (kHz)           bandwidth     Maximum ACCP      Maximum ACCP absolute (dBm)
                                                     (kHz)      relative (dBc)
----------------------------------------------------------------------------------------------------------------
9.375.........................................            6.25             -40  not specified
15.625........................................            6.25             -60  -45
21.875........................................            6.25             -60  -45
37.500........................................           25.00             -65  -50
62.500........................................           25.00             -65  -50
87.500........................................           25.00             -65  -50
150.000.......................................          100.00             -65  -50
250.000.......................................          100.00             -65  -50
>400 to receive band..........................           30(s)             -75  -55
In the receive band...........................           30(s)            -100  -70
----------------------------------------------------------------------------------------------------------------


                                   25 kHz Mobile Transmitter ACCP Requirements
----------------------------------------------------------------------------------------------------------------
                                                  Measurement
      Offset from center frequency (kHz)           bandwidth     Maximum ACCP      Maximum ACCP absolute (dBm)
                                                     (kHz)      relative (dBc)
----------------------------------------------------------------------------------------------------------------
15.625........................................            6.25             -40  not specified
21.875........................................            6.25             -60  -45
37.500........................................           25.00             -65  -50
62.500........................................           25.00             -65  -50
87.500........................................           25.00             -65  -50
150.000.......................................          100.00             -65  -50
250.000.......................................          100.00             -65  -50
>400 to receive band..........................           30(s)             -75  -55
In the receive band...........................           30(s)            -100  -70
----------------------------------------------------------------------------------------------------------------


           150 kHz Mobile Transmitter ACCP Requirements 12.5 kHz Mobile Transmitter ACCP Requirements
----------------------------------------------------------------------------------------------------------------
                                                  Measurement
      Offset from center frequency (kHz)           bandwidth     Maximum ACCP      Maximum ACCP absolute (dBm)
                                                     (kHz)      relative (dBc)
----------------------------------------------------------------------------------------------------------------
100...........................................              50             -40  not specified
200...........................................              50             -50  -35
300...........................................              50             -50  -35
400...........................................              50             -50  -35
600 to 1000...................................           30(s)             -60  -45
1000 to receive band..........................           30(s)             -70  -55
In the receive band...........................           30(s)            -100  -75
----------------------------------------------------------------------------------------------------------------


                                   6.25 kHz Base Transmitter ACCP Requirements
----------------------------------------------------------------------------------------------------------------
                                                               Measurement
             Offset from center frequency (kHz)                 bandwidth             Maximum ACCP (dBc)
                                                                  (kHz)
----------------------------------------------------------------------------------------------------------------
6.25.......................................................            6.25  -40
12.50......................................................            6.25  -60
18.75......................................................            6.25  -60
25.00......................................................            6.25  -65
37.50......................................................           25.00  -65
62.50......................................................           25.00  -65
87.50......................................................           25.00  -65
150.00.....................................................          100.00  -65
250.00.....................................................          100.00  -65

[[Page 17604]]

 
>400 to receive band.......................................           30(s)  -80 (continues @-6dB/oct)
In the receive band........................................           30(s)  -100
----------------------------------------------------------------------------------------------------------------


                                   12.5 kHz Base Transmitter ACCP Requirements
----------------------------------------------------------------------------------------------------------------
                                                               Measurement
             Offset from center frequency (kHz)                 bandwidth             Maximum ACCP (dBc)
                                                                  (kHz)
----------------------------------------------------------------------------------------------------------------
9.375......................................................            6.25  -40
15.625.....................................................            6.25  -60
21.875.....................................................            6.25  -60
37.500.....................................................           25.00  -60
62.500.....................................................           25.00  -65
87.500.....................................................           25.00  -65
150.000....................................................          100.00  -65
250.000....................................................          100.00  -65
>400 to receive band.......................................           30(s)  -80 (continues @-6dB/oct)
In the receive band........................................           30(s)  -100
----------------------------------------------------------------------------------------------------------------


                                    25 kHz Base Transmitter ACCP Requirements
----------------------------------------------------------------------------------------------------------------
                                                               Measurement
             Offset from center frequency (kHz)                 bandwidth             Maximum ACCP (dBc)
                                                                  (kHz)
----------------------------------------------------------------------------------------------------------------
15.625.....................................................            6.25  -40
21.875.....................................................            6.25  -60
37.500.....................................................           25.00  -60
62.500.....................................................           25.00  -65
87.500.....................................................           25.00  -65
150.000....................................................          100.00  -65
250.000....................................................          100.00  -65
>400 to receive band.......................................           30(s)  -80 (continues @-6dB/oct)
In the receive band........................................           30(s)  -100
----------------------------------------------------------------------------------------------------------------


                                   150 kHz Base Transmitter ACCP Requirements
----------------------------------------------------------------------------------------------------------------
                                                               Measurement
             Offset from center frequency (kHz)                 bandwidth             Maximum ACCP (dBc)
                                                                  (kHz)
----------------------------------------------------------------------------------------------------------------
100........................................................              50  -40
200........................................................              50  -50
300........................................................              50  -55
400........................................................              50  -60
600 to 1000................................................           30(s)  -65
1000 to receive band.......................................           30(s)  -75 (continues @-6dB/oct)
In the receive band........................................           30(s)  -100
----------------------------------------------------------------------------------------------------------------

    (2) ACCP measurement procedure. The following procedures are to be 
followed for making ACCP transmitter measurements. For time division 
multiple access (TDMA) systems, the measurements are to be made under 
TDMA operation only during time slots when the transmitter is on. All 
measurements must be made at the

[[Page 17605]]

input to the transmitter's antenna. Measurement bandwidth used below 
implies an instrument that measures the power in many narrow bandwidths 
(e.g. 300 Hz) and integrates these powers across a larger band to 
determine power in the measurement bandwidth.
    (i) Setting reference level: Using a spectrum analyzer capable of 
ACCP measurements, set the measurement bandwidth to the channel size. 
For example, for a 6.25 kHz transmitter, set the measurement bandwidth 
to 6.25 kHz; for a 150 kHz transmitter, set the measurement bandwidth 
to 150 kHz. Set the frequency offset of the measurement bandwidth to 
zero and adjust the center frequency of the spectrum analyzer to give 
the power level in the measurement bandwidth. Record this power level 
in dBm as the ``reference power level''.
    (ii) Measuring the power level at frequency offsets 600kHz: Using a 
spectrum analyzer capable of ACCP measurements, set the measurement 
bandwidth as shown in the tables above. Measure the ACCP in dBm. These 
measurements should be made at maximum power. Calculate the coupled 
power by subtracting the measurements made in this step from the 
reference power measured in the previous step. The absolute ACCP values 
must be less than the values given in the table for each condition 
above.
    (iii) Measuring the power level at frequency offsets >600kHz: Set a 
spectrum analyzer to 30 kHz resolution bandwidth, 1 MHz video bandwidth 
and sample mode detection. Sweep 6 MHz from the carrier 
frequency. Set the reference level to the RMS value of the transmitter 
power and note the absolute power. The response at frequencies greater 
than 600 kHz must be less than the values in the tables above.
    (iv) Upper Power Limit Measurement: The absolute coupled power in 
dBm measured above must be compared to the table entry for each given 
frequency offset. For those mobile stations with power control, these 
measurements should be repeated with power control at maximum power 
reduction. The absolute ACCP at maximum power reduction must be less 
than the values in the tables above.
    (3) Out-of-band emission limit. On any frequency outside of the 
frequency ranges covered by the ACCP tables in this section, the power 
of any emission must be reduced below the unmodulated carrier power (P) 
by at least 43 + 10 log (P) dB.
    (4) Authorized bandwidth. Provided that the ACCP requirements of 
this section are met, applicants may request any authorized bandwidth 
that does not exceed the channel size.
    (f) For operations in the 746-764 MHz and 776-794 MHz bands, 
emissions in the band 1559-1610 MHz shall be limited to -70 dBW/MHz 
equivalent isotropically radiated power (EIRP) for wideband signals, 
and -80 dBW EIRP for discrete emissions of less than 700 Hz bandwidth. 
For the purpose of equipment authorization, a transmitter shall be 
tested with an antenna that is representative of the type that will be 
used with the equipment in normal operation.
* * * * *

    12. Section 27.55 is amended by revising paragraph (b) to read as 
follows:


Sec. 27.55  Field strength limits.

* * * * *
    (b) 746-764 and 776-794 MHz bands: 40dBu V/m

    13. Section 27.60 is amended by removing the phrase ``747-762 MHz 
and 777-792 MHz'' from the introductory text and adding in its place 
the phrase ``746-764 MHz and 776-794 MHz'', removing the phrase ``747-
762 MHz and 777-792 MHz'' and ``747-762 MHz or 777-792 MHz `` from 
paragraph (b) introductory text and adding in its place the phrase 
``746-764 MHz and 776-794 MHz'' and ``746-764 MHz or 776-794 MHz'', 
respectively, removing the phrase ``747-762 MHz'' from paragraph 
(b)(2)(i) and adding in its place the phrase ``746-764 MHz'', and 
removing the phrase ``777-792 MHz'' from paragraph (b)(2)(ii) and 
adding in its place the phrase ``776-794 MHz''.

    14. Section 27.66 is amended by revising paragraphs (a), (b), and 
(c) to read as follows:


Sec. 27.66  Discontinuance, reduction, or impairment of service.

    (a) Involuntary act. If the service provided by a fixed common 
carrier licensee, or a fixed common carrier operating on spectrum 
licensed to a Guard Band Manager, 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 
discontinuance, reduction, or impairment of service, including a 
statement when normal service is to be resumed. When normal service is 
resumed, the licensee must promptly notify the Commission.
    (b) Voluntary act by common carrier. If a fixed common carrier 
licensee, or a fixed common carrier operating on spectrum licensed to a 
Guard Band Manager, 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 this chapter. An 
application will be granted within 30 days after filing if no 
objections have been received.
    (c) Voluntary act by non-common carrier. If a fixed non-common 
carrier licensee, or a fixed non-common carrier operating on spectrum 
licensed to a Guard Band Manager, voluntarily discontinues, reduces, or 
impairs service to a community or part of a community, it must given 
written notice to the Commission within seven days.
* * * * *

    15. The heading for subpart F is revised to read as follows:

Subpart F--Competitive Bidding Procedures for the 746-764 MHz and 
776-794 MHz Bands

* * * * *

    16. Section 27.501 is revised to read as follows:


Sec. 27.501 746-764  MHz and 776-794 MHz bands subject to competitive 
bidding.

    Mutually exclusive initial applications for licenses in the 746-764 
MHz and 776-794 MHz bands are subject to competitive bidding 
procedures. The procedures set forth in part 1, subpart Q, of this 
chapter will apply unless otherwise provided in this part.

    17. Part 27 is amended by adding subpart G to read as follows:
Subpart G--Guard Band Managers
Sec.
27.601    Guard Band Manager authority and coordination 
requirements.
27.602    Guard Band Manager agreements.
27.603    Access to the Guard Band Manager's spectrum.
27.604    Limitation on licenses won at auction.
27.605    Geographic partitioning and spectrum disaggregation.
27.606    Complaints against Guard Band Managers.
27.607    Performance requirements and annual reporting requirement.
Subpart G--Guard Band Managers


Sec. 27.601  Guard Band Manager authority and coordination 
requirements.

    (a) Subject to the provisions of Sec. 27.2(b) and paragraphs (c) 
and (d) of this section, a Guard Band Manager may allow a spectrum 
user, pursuant to a written agreement, to construct and operate 
stations at any available site within the licensed area and on any 
channel for which the Guard Band Manager is licensed, provided such 
stations comply with Commission Rules and coordination requirements.
    (b) Subject to the provisions of Sec. 27.2(b) and paragraphs (c) 
and (d) of

[[Page 17606]]

this section, a Guard Band Manager may allow a spectrum user, pursuant 
to a written agreement, to delete, move or change the operating 
parameters of any of the user's stations that are covered under the 
Guard Band Manager's license without prior Commission approval, 
provided such stations comply with Commission Rules and coordination 
requirements.
    (c)(1) A Guard Band Manager must file a separate station 
application and obtain all appropriate Commission approvals or 
authorizations prior to construction of stations that--
    (i) Require submission of an Environmental Assessment under 
Sec. 1.1307 of this chapter;
    (ii) Require international coordination; or
    (iii) Would affect the radio frequency quiet zones described in 
Sec. 90.177 of this chapter.
    (2) Prior to construction of a station, a Guard Band Manager must 
register with the Commission any station antenna structure for which 
notification to the Federal Aviation Administration is required by part 
17 of this chapter.
    (3) It is the Guard Band Manager's responsibility to determine 
whether a referral to the Commission is needed for any individual 
station constructed in the Guard Band Manager's license area.
    (d)(1) A Guard Band Manager must notify Commission-recognized 
public safety frequency coordinators for the 700 MHz public safety band 
and adjacent-area Guard Band Managers within one business day after the 
Guard Band Manager has:
    (i) Coordinated a new station or modification of an existing 
station; or
    (ii) Filed an application for an individual station license with 
the Commission.
    (2) The notification required in paragraph (d)(1) of this section 
must include, at a minimum--
    (i) The frequency or frequencies coordinated;
    (ii) Antenna location and height;
    (iii) Type of emission;
    (iv) Effective radiated power;
    (v) A description of the service area, date of coordination, and 
user name or, in the alternative, a description of the type of 
operation.
    (3) In the event a Guard Band Manager partitions its service area 
or disaggregates its spectrum, it is required to submit the 
notification required in paragraph (d)(1) of this section to other 
Guard Band Managers in the same geographic area.
    (4) Entities coordinated by a Guard Band Manager must wait at least 
10 business days after the notification required in paragraph (d)(1) of 
this section before operating under the Guard Band Manager's license;
    (5) If, in the event of harmful interference, the Guard Band 
Manager is unable to resolve the problem by mutually satisfactory 
arrangements, the Commission may impose restrictions on the operations 
of any of the parties involved.
    (e) Where a deletion, move or change authorized under paragraph (b) 
of this section constitutes a discontinuance, reduction, or impairment 
of service under Sec. 27.66 or where discontinuance, reduction or 
impairment of service results from an involuntary act subject to 
Sec. 27.66(a), the Guard Band Manager must comply with the notification 
and authorization requirements set forth in that section.


Sec. 27.602  Guard Band Manager agreements.

    Guard Band Managers are required to enter into written agreements 
regarding the use of their licensed spectrum by others, subject to the 
following conditions:
    (a) The duration of spectrum user agreements may not extend beyond 
the term of the Guard Band Manager's FCC license.
    (b) The spectrum user agreement must specify in detail the 
operating parameters of the spectrum user's system, including power, 
maximum antenna heights, frequencies of operation, base station 
location(s), area(s) of operation, and other parameters specified in 
Commission rules for the use of spectrum identified in Sec. 27.5(b)(1) 
and (b)(2).
    (c) The spectrum user agreement must require the spectrum user to 
use Commission-approved equipment where appropriate and to complete 
post-construction proofs of system performance prior to system 
activation.
    (d) The spectrum user must agree to operate its system in 
compliance with all technical specifications for the system contained 
in the agreement and agree to cooperate fully with any investigation or 
inquiry conducted by either the Commission or the Guard Band Manager.
    (e) The spectrum user must agree to comply with all applicable 
Commission rules, and the spectrum user must accept Commission 
oversight and enforcement.
    (f) The spectrum user agreement must stipulate that if the Guard 
Band Manager determines that there is an ongoing violation of the 
Commission's rules or that the spectrum user's system is causing 
harmful interference, the Guard Band Manager shall have the right to 
suspend or terminate operation of the spectrum user's system. The 
spectrum user agreement must stipulate that if the spectrum user 
refuses to comply with a suspension or termination order, the Guard 
Band Manager will be free to use all legal means necessary to enforce 
the order.
    (g) The spectrum user agreement may not impose unduly restrictive 
requirements on use of the licensed frequencies, including any 
requirement that is not reasonably related to the efficient management 
of the spectrum licensed to the Guard Band Manager.
    (h) Guard Band Managers shall maintain their written agreements 
with spectrum users at their principal place of business, and retain 
such records for at least two years after the date such agreements 
expire. Such records shall be kept current and be made available upon 
request for inspection by the Commission or its representatives.


Sec. 27.603  Access to the Guard Band Manager's spectrum.

    (a) A Guard Band Manager may not engage in unjust or unreasonable 
discrimination among spectrum users and may not unreasonably deny 
prospective spectrum users access to the Guard Band Manager's licensed 
spectrum.
    (b) A Guard Band Manager may not impose unduly restrictive 
requirements on use of its licensed frequencies, including any 
requirement that is not reasonably related to the efficient management 
of the spectrum licensed to the Guard Band Manager.
    (c) A Guard Band Manager may lease a reasonable amount of its 
spectrum to an affiliate for the affiliate's own internal use or for 
the affiliate's provision of commercial or private radio services. 
However, a Guard Band Manager must lease the predominant amount of its 
spectrum to non-affiliates.


Sec. 27.604  Limitation on licenses won at auction.

    (a) For the first auction of licenses in Blocks A and B, as defined 
in Sec. 27.5, no applicant may be deemed the winning bidder of both a 
Block A and a Block B license in a single geographic service area.
    (b) For purposes of paragraph (a) of this section, licenses will be 
deemed to be won by the same bidder if an entity that wins one license 
at the auction is an affiliate of any other entity that wins a license 
at the auction.


Sec. 27.605  Geographic partitioning and spectrum disaggregation.

    An entity that acquires a portion of a Guard Band Manager's 
geographic area or spectrum subject to a geographic partitioning or 
spectrum disaggregation

[[Page 17607]]

agreement under Sec. 27.15 must function as a Guard Band Manager and is 
subject to the obligations and restrictions on Guard Band Manager 
licenses set forth in this subpart.


Sec. 27.606  Complaints against Guard Band Managers.

    Guard Band Managers are expected to resolve disputes with their 
customers or disputes between multiple customers of the Guard Band 
Manager in the same manner that the parties would resolve other 
commercial disputes arising out of the spectrum user agreement. The 
Commission will also consider complaints filed against a Guard Band 
Manager for violating the Communications Act or the Commission's 
regulations or policies. When there is a dispute between a Guard Band 
Manager, or its spectrum user, and a non-contracting party, and the 
Guard Band Manager is unable or unwilling to resolve such dispute in a 
timely fashion, the non-contracting party may file a complaint with the 
Commission pursuant to Sec. 1.41 of this chapter.


Sec. 27.607  Performance requirements and annual reporting requirement.

    (a) Guard Band Managers are subject to the performance requirements 
specified in Sec. 27.14(a).
    (b) Guard Band Managers are required to file an annual report 
providing the Commission with information about the manner in which 
their spectrum is being utilized. Such reports shall be filed with the 
Commission on a calendar year basis, no later than the March 1 
following the close of each calendar year, unless another filing date 
is specified by Public Notice.
    (c) Guard Band Managers must, at a minimum, include the following 
information in their annual reports:
    (1) The total number of spectrum users and the number of those 
users that are affiliates of the Guard Band Manager;
    (2) The amount of the Guard Band Manager's spectrum being used by 
the Guard Band Manager's affiliates in any part of the licensed service 
area;
    (3) The amount of Guard Band Manager's spectrum being used pursuant 
to agreements with unaffiliated third parties;
    (4) The nature of the spectrum use of the Guard Band Manager's 
customers; and
    (5) The length of the term of each spectrum user agreement.
    (d) The specific information that Guard Band Managers will provide 
and the procedures that they will follow in submitting their annual 
reports will be announced in a Public Notice issued by the Wireless 
Telecommunications Bureau.
[FR Doc. 00-8144 Filed 4-3-00; 8:45 am]
BILLING CODE 6712-01-P