[Federal Register Volume 65, Number 223 (Friday, November 17, 2000)]
[Proposed Rules]
[Pages 69612-69617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-28820]



[[Page 69611]]

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Part II





Federal Communications Commission





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47 CFR Parts 2, 25, and 27



Transfer of the 3650 Through 3700 MHz Band and the 4.9 GHz Band From 
Federal Government Use; Proposed Rule

  Federal Register / Vol. 65, No. 223 / Friday, November 17, 2000 / 
Proposed Rules  

[[Page 69612]]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 2, 25, and 27

[ET Docket No. 98-237 and WT Docket No. 00-32; FCC 00-363]


Transfer of the 3650 Through 3700 MHz Band and the 4.9 GHz Band 
From Federal Government Use

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to establish licensing and service 
rules for the assignment of fixed and mobile services licenses in the 
3650 through 3700 MHz band. This document also seeks comments on 
whether technical requirements or other reasons justify licensing the 
band and the 4940 through 4990 MHz band at the same time. This action 
is intended to facilitate the provision of a broad range of services, 
including traditional voice telephony and new broadband, high-speed, 
data and video services, and to help foster the introduction of such 
services to rural and underserved areas of the United States.

DATES: Submit comments on or before December 18, 2000, and submit reply 
comments on or before January 16, 2001. Written comments by the public 
on the proposed information collections are due January 16, 2001. 
Written comments on the proposed information collections must be 
submitted by the Office Management and Budget (OMB) on the proposed 
information collections on or before March 19, 2001.

ADDRESSES: Send comments and reply comments to the Office of the 
Secretary, Federal Communications Commission, Washington, D.C. 20554. 
In addition to filing comments with the Secretary, a copy of any 
comments on the information collections contained herein should be 
submitted to Judy Boley, Federal Communications Commission, Room 1-
C804, 445 12th Street, SW, Washington, D.C. 20554, or via the Internet 
to [email protected], and to Ed Springer, OMB Desk Officer, 10236 NEOB, 
725--17th Street, N.W., Washington, D.C. 20503 or via the Internet to 
[email protected].

FOR FURTHER INFORMATION CONTACT: Eli Johnson, 202-418-1310. For 
additional information concerning the information collections contained 
in this document, contact Judy Boley at 202-418-0214, or via the 
Internet at [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second 
Notice of Proposed Rule Making (Second NPRM) in ET Docket No. 98-237 
and WT Docket No. 00-32, FCC 00-363, adopted October 12, 2000, and 
released October 24, 2000. The complete text of the Second NPRM and 
Initial Regulatory Flexibility Analysis is available on the 
Commission's Internet site, at www.fcc.gov. It is also 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 may be purchased from the Commission's copy 
contractor, International Transcription Services, Inc., CY-B400, 445 
12th Street S.W., Washington, D.C. Comments may be sent as an 
electronic file via the Internet to http://www.fcc.gov/e-file/ecfs.html, or by e-mail to [email protected].

Synopsis of the Second NPRM

    1. In this Second NPRM, the Commission proposes licensing and 
service rules for the assignment of fixed and mobile services licenses 
in the 3650 through 3700 MHz band to fixed and mobile (base stations) 
terrestrial services by competitive bidding. The Second NPRM also seeks 
comment on whether technical requirements or other reasons justify 
licensing the 4940 through 4990 MHz (4.9 GHz) band at the same time.
    2. The 3600 through 3700 MHz band has been allocated for use by the 
Federal Government on a primary basis for radiolocation services. The 
associated First Report and Order adopted with the Second NPRM, 
allocates the 50 megahertz of spectrum in the 3650 through 3700 MHz 
band to the fixed and mobile (base stations) terrestrial services on a 
primary basis. (See Notice of Proposed Rulemaking and Order in ET 
Docket No. 98-237, 64 FR 2462, January 14, 1999.)
    3. The Commission is ``grandfathering'' existing fixed satellite 
service (FSS) earth stations in this band, and, for a limited time will 
accept new applications for FSS earth stations in the vicinity of these 
grandfathered sites to operate on a co-primary basis in the band. The 
Commission will also permit additional FSS earth station operations on 
a secondary basis. The Second NPRM proposes that both new and existing 
FSS earth stations be subject to part 25 of the Commission's Rules.
    4. As discussed in paragraph 120 in the full text of the Second 
NPRM, the Commission proposes to assign terrestrial service licenses in 
this band pursuant to the Commission's part 1 competitive bidding 
rules. The Commission also proposes to license the 3650 through 3700 
MHz band under part 27 of the Commission's Rules as modified to reflect 
the particular characteristics and circumstances of services offered 
through the use of spectrum in the 3650 through 3700 band. (See the 
Proposed Rules portion of this FR Summary or Appendix E of the Second 
NPRM.) The Commission also seeks comment on the geographic area and 
spectrum blocks that should be used to license this spectrum. Further, 
as discussed in paragraphs 42 through 44 of the Second NPRM, the 
Commission seeks comment on whether technical requirements or other 
reasons justify licensing the 3650 through 3700 MHz and the 4.9 GHz 
bands at the same time. (See the Notice of Proposed Rulemaking in WT 
Docket 00-32, 65 FR 14230, March 16, 2000.)
    5. The Commission, in paragraph 47 of the Second NPRM, proposes 
that licensees in the 3650 through 3700 MHz band be subject to the 
Universal Licensing System (ULS). ULS is the interactive licensing 
database developed by the Wireless Telecommunications Bureau to 
consolidate and replace eleven existing licensing systems used to 
process applications and grant licenses in the wireless services. 
License applications filed by part 27 licensees must be filed 
electronically via ULS.
    6. The Commission, as indicated in paragraph 49 of the Second NPRM, 
seeks comment from the public in general concerning the proposals set 
forth in the Second NPRM. The Commission, however, specifically seeks 
comment from Indian Tribal governments on the proposals contained in 
the Second NPRM. The Commission believes that the proposals set forth 
in the Second NPRM have the potential to foster the development and, 
ultimately, the deployment of new technologies and services to many 
communities, including tribal communities. Thus, the Commission seeks 
comment both from Tribal governments and other interested parties on 
the potential for the spectrum proposals to serve the communications 
needs of tribal communities.
    7. Paragraphs 50 through 56 of the Second NPRM consider regulatory 
status and flexible use of the 3650 through 3700 MHz band. In this 
section, the Commission proposes that applicants and licensees in this 
band not be required to describe their proposed services, but be 
required to indicate a regulatory status based on any services they 
choose to provide. Under this proposal, licensees who change the 
service they offer, such that it would change their regulatory status, 
must notify the Commission within 30 days of the change. Changes 
resulting in the discontinuance, reduction, or impairment of the 
existing service could

[[Page 69613]]

require a different time period for notification as governed by section 
101.305 of the Commission's Rules. Paragraphs 57 through 60 of the 
Second NPRM address eligibility restrictions and spectrum aggregation 
limitations. Paragraphs 61 through 63 of the Second NPRM pertains to 
foreign ownership restrictions in the 3650 through 3700 MHz band.
    8. Other issues discussed in the Second NPRM include geographic 
areas and spectrum blocks (paragraphs 64 through 71), license term and 
renewal expectancy (paragraphs 72 through 74), partitioning and 
disaggregation of licenses and the use of band managers (paragraphs 75 
through 81), performance requirements (paragraphs 82 through 88), equal 
employment opportunity issues (paragraphs 89 through 90), technical 
rules (paragraphs 91 and 92), in-band interference control (paragraphs 
93 through 109), adjacent band interference control (paragraphs 110 
through 116), RF Safety (paragraphs 117 through 119), competitive 
bidding provisions for small businesses (paragraphs 120 through 127), 
and additional satellite issues (paragraphs 128 through 133).

Initial Regulatory Flexibility Analysis

    9. As required by the Regulatory Flexibility Act of 1980 (RFA), 5 
U.S.C. 603, the Commission has prepared an Initial Regulatory 
Flexibility Analysis (IRFA) of the possible significant economic impact 
on small entities of the policies and rules proposed in the Second 
NPRM. The Commission requests written public comment on the analysis. 
In order to fulfill the mandate of the Contract with America 
Advancement Act of 1996 regarding the Initial Regulatory Flexibility 
Analysis, the Commission asks a number of questions in the IRFA 
regarding the prevalence of small businesses in the affected 
industries.
    10. Comments regarding the IRFA must be filed in accordance with 
the same filing deadlines as comments filed in this Second NPRM, but 
they must have a separate and distinct heading designating them as 
responses to the IRFA. The Commission's Consumer Information Bureau, 
Reference Information Center, will send a copy of this Second NPRM, 
including the IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration.

Ex Parte Presentations

    11. 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).)

Pleading Dates

    12. Pursuant to applicable procedures set forth in sections 1.415 
and 1.419 of the Commission's Rules, interested parties may file 
comments on or before December 18, 2000, and reply comments on or 
before January 16, 2001. Comments and reply comments should be filed in 
ET Docket No. 98-237 and WT Docket No. 00-32. All relevant and timely 
comments will be considered by the Commission before final action is 
taken in this proceeding. To file formally in this proceeding, 
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, Room TW-A325, 445 Twelfth 
Street, S.W., Washington, D.C. 20554, with a copy to Eli Johnson, 
Policy Division, Wireless Telecommunications Bureau, 445 Twelfth 
Street, S.W., Washington, D.C. 20554.
    13. 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 the 
applicable docket or rulemaking number. 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 your E-Mail address>.'' A sample form and directions will be 
sent in reply.
    14. Comments and reply comments will be available for public 
inspection during regular business hours at the FCC Reference Center, 
Room CY-A257, at the Federal Communications Commission, 445 Twelfth 
Street, S.W., Washington, D.C. 20554. Copies of comments and reply 
comments are available through the Commission's duplicating contractor: 
International Transcription Service, Inc. (ITS, Inc.), CY-B400, 445 
12th Street, S.W., Washington, D.C. 20054, (202) 857-3800.

Ordering Clauses

    15. The Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of this Second Notice of Proposed 
Rulemaking, including the Initial Regulatory Flexibility Analysis, to 
the Chief Counsel of 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).
    16. Pursuant to sections 4, 4(i), 157, 303, 303(g), 303(r), 307, 
and 332(c)(7) of the Communications Act of 1934, as amended, 47 U.S.C. 
154, 154(i), 157, 303, 303(g), 303(r), 307, and 332 (c)(7) the Second 
Notice of Proposed Rule Making is adopted.

Initial Regulatory Flexibility Analysis

    17. This is a synopsis of the Initial Regulatory Flexibility Act 
Statement in this Second Notice of Proposed Rule Making (Second NPRM). 
The full text of the Initial Regulatory Flexibility Act Statement may 
be found in Appendix C of the full Second NPRM.
    18. As required by the Regulatory Flexibility Act (RFA) the 
Commission has prepared this Initial Regulatory Flexibility Analysis 
(IRFA) of the possible significant economic impact on small entities by 
the policies and rules proposed in this Second NPRM. 5 U.S.C. 603 The 
RFA, 5 U.S.C. 601 et seq., has been amended by the Contract with 
America Advancement Act of 1996, Public Law 104-121, 110 Stat. 847 
(1996) (CWAA). Title II of the CWAA is the Small Business Regulatory 
Enforcement Fairness Act of 1996 (SBREFA). Written public comments are 
requested on this IRFA. Comments must be identified as responses to the 
IRFA and must be filed by the deadlines for comments on the Second 
NPRM. The Commission will send a copy of the Second NPRM, including the 
IRFA, to the Chief Counsel for Advocacy of the Small Business 
Administration.

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

    19. The actions taken in this Second NPRM are intended to 
facilitate the provision of a broad range of services. The Commission 
believes the 3650 through 3700 MHz band may be used to foster the 
introduction of wireless services to rural areas of the United States 
and to develop new and more effective competition to existing wireline 
local exchange carriers by providing for an economical means to

[[Page 69614]]

offer competitive ``local loop'' or ``last-mile'' facilities.

B. Legal Basis for Proposed Rules

    20. The proposed action is authorized under sections 4, 4(i), 157, 
303, 303(g), 303(r), 307, and 332(c)(7) of the Communications Act of 
1934, as amended, 47 U.S.C. 154, 154(i), 157, 303, 303(g), 303(r), 307, 
and 332(c)(7).

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

    21. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted. The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under Section 3 of the 
Small Business Act, unless the Commission has developed one or more 
definitions that are appropriate for its activities. 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) satisfies any additional criteria established by the 
Small Business Administration (SBA).
    22. A small organization is generally ``any not-for-profit 
enterprise which is independently owned and operated and is not 
dominant in its field.'' Nationwide, as of 1992, there were 
approximately 275,801 small organizations. The definition of ``small 
governmental jurisdiction'' is one with populations of fewer than 
50,000. There are 85,006 governmental jurisdictions in the nation. The 
Commission estimates that 96 percent, or about 81,600, are small 
entities that may be affected by the proposed rules. Nationwide, there 
are 4.44 million small business firms, according to SBA reporting data.
    23. The Commission has not developed a definition of small entities 
applicable to fixed satellite service licensees. Therefore, the 
applicable definition of small entity is the definition under the SBA 
rules applicable to Communications Services, Not Elsewhere Classified. 
This definition provides that a small entity is one with no more than 
$11.0 million in annual receipts. According to Census Bureau data, 
there are 848 firms that fall under the category of Communications 
Services, Not Elsewhere Classified. Of those, approximately 775 
reported annual receipts of $11 million or less and qualify as small 
entities.
    24. The Commission must assign licenses for this spectrum by 
competitive bidding to satisfy the requirements of the Balanced Budget 
Act of 1997. The Commission has not yet determined how many licenses 
will be awarded. Moreover, the Commission does not know how many 
licensees will partition their license areas or disaggregate their 
spectrum blocks, if partitioning and disaggregation are allowed. The 
Commission therefore assumes that, for purposes of our evaluations and 
conclusions in the IRFA, all prospective licensees are small entities, 
as that term is defined by the SBA or our proposed small business 
definitions for terrestrial fixed and mobile services in the 3650 
through 3700 MHz band.

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

    25. Applicants for licenses to provide terrestrial fixed and mobile 
services in the 3650 through 3700 MHz band will be required to submit 
short-form applications using FCC Form 175. In addition, winning 
bidders must submit long-form license applications through the 
Universal Licensing System using FCC Form 601, and other appropriate 
forms. The Commission invites comment on how these filing requirements 
can be modified to reduce the burden on small entities.
    26. As proposed, all services, other than fixed satellite service 
earth stations, in the 3650 through 3700 MHz band would be governed by 
part 27 of the Commission's Rules, and, in certain instances, part 20. 
The proposals under consideration in this item include requiring 
commercial licensees 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. The 
Commission requests 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

    27. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives: (1) the 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design standards; and (4) an 
exemption from coverage of the rule, or any part thereof; for small 
entities.
    28. The Second NPRM proposes the following small business 
definitions for bidders in auctions of licenses in the 3650 through 
3700 MHz band: an ``entrepreneur'' would be defined as an entity with 
average annual gross revenues for the three preceding years not 
exceeding $40 million, a ``small business'' would be defined as an 
entity with average annual gross revenues for the three preceding years 
not exceeding $15 million, and a ``very small business'' would be 
defined as an entity with average annual gross revenues for the three 
preceding years not exceeding $3 million. In developing these 
definitions, the Commission considered the alternative of using only 
two small business definitions, as it did in the case of the 2.3 GHz 
Wireless Communications Service (WCS) and certain other services. 
However, the Commission believes that an additional third category of 
small businesses may be appropriate because the deployment of fixed 
wireless equipment in nearby spectrum bands suggests that entry costs 
may be lower than was the case for the 2.3 GHz WCS when it was licensed 
in 1997. Thus, very small businesses may now be better able to take 
advantage of bidding credits to acquire licenses and provide 
communications services.
    29. The Commission, while proposing a requirement that fixed and 
mobile services applicants identify whether or not they seek to provide 
common carrier services, also proposes to allow these applicants to 
request common carrier status as well as non-common carrier status for 
authorization in a single license, rather than require these applicants 
to choose between common carrier and non-common carrier services. The 
Commission also proposes that fixed and mobile applicants and licensees 
in the 3650 through 3700 MHz band not be required to describe their 
proposed services, but be required to indicate a regulatory status 
based on any services they choose to provide. The Commission, however, 
particularly seeks comment on the effect of this flexible approach on 
possible investment in communications services and systems and more 
generally on technology development.
    30. The Commission proposes that there be no restrictions on 
eligibility for fixed and mobile services licensees in

[[Page 69615]]

the 3650 through 3700 MHz and 4.9 GHz bands other than the alien 
ownership restrictions set forth in section 310 of the Communications 
Act. The Commission proposes that both common carrier and non-common 
carrier licensees in the 3650 through 3700 MHz band provide the alien 
ownership information requested in FCC Form 601, as well as amendments 
to FCC Form 602 to reflect any changes in foreign ownership 
information.
    31. The Commission has reduced burdens wherever possible. To 
minimize any negative impact, however, the Commission proposes certain 
provisions that will redound to the benefit of small entities. These 
special provisions include partitioning and spectrum disaggregation. 
These provisions will allow smaller entities to overcome entry 
barriers. In addition, the Commission seeks comment on whether it would 
be appropriate to license the 3650 through 3700 MHz band for fixed and 
mobile services using smaller geographical licensing areas. The use of 
smaller licensing areas could benefit small entities by reducing costs 
and build-out expenses. The Commission also seeks comment on different 
approaches to minimizing the burdens of interference management.
    32. The regulatory burdens the Commission proposed to retain are 
necessary in order to ensure that the public receives the benefits of 
innovative new services in a prompt and efficient manner. The 
Commission will continue to examine alternatives in the future with the 
objectives of eliminating unnecessary regulations and minimizing any 
significant economic impact on small entities. The Commission seeks 
comment on significant alternatives commenters believe we should adopt.

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

    33. None.

Paperwork Reduction Analysis

    34. This Second NPRM contains proposed and modified information 
collections. As part of our continuing effort to reduce paperwork 
burdens, the Commission invites the general public and the Office of 
Management and Budget (OMB) to take this opportunity to comment on the 
information collections contained in this Second NPRM, as required by 
the Paperwork Reduction Act of 1995, Public Law 104-13. Public and 
agency comments are due January 16, 2001. OMB comments are due March 
19, 2001. 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: 3060-0926.
    Title: The Transfer of the Bands from Federal Government Use: 
Notice of Proposed Rulemaking.
    Form No.: FCC Forms 601, 602, 603, 604, 605.
    Type of Review: Modified information collection.
    Respondents: Business or other for profit.
    Number of Respondents: 200.
    Estimated Time Per Response: 113 hours.
    Total Annual Cost Burden: 0.
    Total Annual Burden: 22,600 hours.
    Needs and Uses: The various information reporting and verification 
requirements, and the prospective coordination requirement will be used 
by the Commission to verify licensee compliance with Commission rules 
and regulations, and to ensure that licensees continue to fulfill their 
statutory responsibilities in accordance with the Communications Act of 
1934. Such information has been used in the past and will continue to 
be used to minimize interference, verify that applicants are legally 
and technically qualified to hold licenses, and to determine compliance 
with Commission rules.

List of Subjects

47 CFR Part 2

    Radio.

47 CFR Parts 25 and 27

    Communications common carriers, Radio, Reporting and recordkeeping 
requirements.

Federal Communications Commission.
William F. Caton,
Deputy Secretary.

Proposed Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 47 CFR parts 2, 25 and 27 
as follows:

PART 2--FREQUENCY ALLOCATIONS AND RADIO TREATY MATTERS; GENERAL 
RULES AND REGULATIONS

    1. The authority citation for part 2 continues to read as follows:

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

    2. Add a new non-Federal Government footnote in numerical order to 
Sec. 2.106, the Table of Frequency Allocations, to read as follows:


Sec. 2.106  Table of Frequency Allocations.

* * * * *
Non-Federal Government (NG) Footnotes
* * * * *
    NGXXX Fixed-satellite service systems that operate primarily 
outside the 3650 through 3700 MHz band may be authorized to perform 
space operations, such as, telemetry, tracking and telecommand 
operations in the band 3650 through 3700 MHz, provided the requirement 
in Sec. 25.202(g)(1) of this chapter is satisfied.
* * * * *

PART 25--SATELLITE COMMUNICATIONS

    3. The authority citation for part 25 continues to read as follows:

    Authority: 47 U.S.C. 701-744. Interprets or applies Sections 4, 
301, 302, 303, 307, 309 and 332 of the Communications Act, as 
amended, 47 U.S.C. Sections 154, 301, 302, 303, 307, 309 and 322, 
unless otherwise noted.
    4. In Sec. 25.202, add a new sentence at the end of paragraph (g) 
to read as follows:


Sec. 25.202  Frequencies, frequency tolerance and emission limitations.

* * * * *
    (g) * * * Telemetry, tracking and telecommand functions for 
satellite service systems operating outside of the band 3650 through 
3700 MHz may be authorized on a secondary basis in the 3650 through 
3700 MHz band upon a particularized showing of need.

PART 27--MISCELLANEOUS WIRELESS COMMUNICATIONS SERVICES

    5. 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.

    6. Add new paragraph (b)(3) to Sec. 27.1 to read as follows:


Sec. 27.1  Basis and purpose.

* * * * *

[[Page 69616]]

    (b) * * *
    (3) 3650 through 3700 MHz band.
* * * * *
    7. Add the following definition in alphabetical order to Sec. 27.4 
to read as follows:


Sec. 27.4  Terms and definitions.

* * * * *
    Grandfathered fixed satellite service earth station. An earth 
station in the 3650 through 3700 MHz band is an earth station that is 
authorized prior to December 1, 2000, or granted as a result of an 
application filed prior to December 1, 2000.
* * * * *
    8. Add new paragraph (c) to Sec. 27.5 to read as follows:


Sec. 27.5  Frequencies.

* * * * *
    (c) 3650 through 3700 MHz band. The 3650 through 3700 MHz band is 
available for licensing pursuant to this part.
    9. In Sec. 27.14, redesignate paragraph (d) as paragraph (e) and 
add a new paragraph (d) to read as follows:


Sec. 27.14  Construction requirements; Criteria for comparative renewal 
proceedings.

* * * * *
    (d) 3650 through 3700 MHz band. (1) For a WCS licensee that offers 
fixed, point-to-point service, the construction of four permanent links 
per one million people in its licensed service area within the 
prescribed license term set forth in Sec. 27.13 would constitute 
substantial service.
    (2) For a WCS licensee that offers fixed, point-to-multipoint 
service, a demonstration of coverage of 20 percent of the population of 
its licensed service area within the prescribed license term set forth 
in Sec. 27.13 would constitute substantial service.
    (3) For a licensee that offers fixed satellite service, the 
construction of one earth station per licensed service area within the 
prescribed license term set forth in Sec. 27.13 would constitute 
substantial service.
* * * * *
    10. In Sec. 27.50, redesignate paragraph (c) as paragraph (d) and 
add a new paragraph (c) to read as follows:


Sec. 27.50  Power limits.

* * * * *
    (c) The following power and antenna height limits apply to base and 
fixed stations operating in the 3650 through 3700 MHz band: Base and 
fixed stations must not exceed an effective radiated power of 1640 
watts and an antenna height of 300 m height above average terrain, or 
its equivalent.
* * * * *
    11. In Sec. 27.53, redesignate paragraph (f) as paragraph (g) and 
add a new paragraph (f) to read as follows:


Sec. 27.53  Emission limits.

* * * * *
    (f) Base and fixed service operations in the 3650 through 3700 MHz 
band are subject to the emission limits set forth in Sec. 101.111 of 
this chapter.
* * * * *
    12. Add new paragraph (c) to Sec. 27.55 to read as follows:


Sec. 27.55  Field strength limits.

* * * * *
    (c) 3650 through 3700 MHz band: 54 dBV/m
    13. Revise Sec. 27.57 to read as follows:


Sec. 27.57  International coordination.

    WCS licensees shall comply with the appropriate coordination 
agreements between the United States and Canada and the United States 
and Mexico concerning cross-border sharing and use of WCS bands. 
Operations in the border areas shall be subject to coordination with 
bordering countries and provide protection to non-U.S. operations in 
the appropriate frequency bands. In addition, satellite operations in 
WCS spectrum shall be subject to international satellite coordination 
procedures.
    14. In Sec. 27.58, add introductory text before paragraph (a) to 
read as follows:


Sec. 27.58  Interference to MDS/ITFS receivers.

    The following rules concerning interference to Multipoint 
Distribution Service (``MDS'') and Instructional Television Fixed 
Service (``ITFS'') receivers apply only to WCS licensees in the 2305-
2320 and 2345-2360 MHz bands:
* * * * *
    15. Add a new Sec. 27.61 to read as follows:


Sec. 27.61  FS/FSS coordination procedure.

    Base and fixed service transmitters in the 3650 through 3700 MHz 
band that are located within 200 kilometers of a grandfathered fixed 
satellite service earth station must be coordinated prior to 
construction to reduce the potential for interference. The fixed 
station licensee must use the coordination procedures specified in 
Sec. 101.21 of this chapter.
    16. A new Subpart H is added to part 27 to read as follows:

Subpart H--Competitive Bidding Procedures for the 3650 Through 3700 
MHz Band

Sec.
27.701   3650 through 3700 MHz band subject to competitive bidding.
27.702   Designated entities.

Subpart H--Competitive Bidding Procedures for the 3650 Through 3700 
MHz Band


Sec. 27.701  3650 through 3700 MHz band subject to competitive bidding.

    Mutually exclusive initial applications for terrestrial service 
licenses in the 3650 through 3700 MHz band 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.


Sec. 27.702  Designated entities.

    (a) Eligibility for small business provisions. (1) A very small 
business is an entity that, together with its controlling interests and 
affiliates, has average gross revenues not exceeding $3 million for the 
preceding three years.
    (2) A small business is an entity that, together with its 
controlling interests and affiliates, has average gross revenues not 
exceeding $15 million for the preceding three years.
    (3) An entrepreneur is an entity that, together with its 
controlling interests and affiliates, has average gross revenues not 
exceeding $40 million for the preceding three years.
    (4) For purposes of determining whether an entity meets any of the 
definitions set forth in paragraph (a)(1), (a)(2), or (a)(3) of this 
section, the gross revenues of the entity, its controlling interests 
and affiliates shall be considered in the manner set forth in 
Sec. 1.2110(b) and (c) of this chapter.
    (5) A consortium of very small businesses is a conglomerate 
organization formed as a joint venture between or among mutually 
independent business firms, each of which individually satisfies the 
definition in paragraph (a)(1) of this section. A consortium of small 
businesses is a conglomerate organization formed as a joint venture 
between or among mutually independent business firms, each of which 
individually satisfies the definition in paragraph (a)(2) of this 
section. A consortium of entrepreneurs is a conglomerate organization 
formed as a joint venture between or among mutually independent 
business firms, each of which individually satisfies the definition in 
paragraph (a)(3) of this section. Where an applicant or licensee

[[Page 69617]]

is a consortium of small businesses (or very small businesses or 
entrepreneurs), the gross revenues of each small business (or very 
small business or entrepreneur) shall not be aggregated.
    (b) Bidding credits. A winning bidder that qualifies as a very 
small business or a consortium of very small businesses as defined in 
this section may use the bidding credit specified in 
Sec. 1.2110(f)(2)(i) of this chapter. A winning bidder that qualifies 
as a small business or a consortium of small businesses as defined in 
this section may use the bidding credit specified in 
Sec. 1.2110(f)(2)(ii) of this chapter. A winning bidder that qualifies 
as an entrepreneur or a consortium of entrepreneurs as defined in this 
section may use the bidding credit specified in Sec. 1.2110(f)(2)(iii) 
of this chapter.

[FR Doc. 00-28820 Filed 11-16-00; 8:45 am]
BILLING CODE 6712-01-P