[Federal Register Volume 66, Number 16 (Wednesday, January 24, 2001)]
[Proposed Rules]
[Pages 7607-7613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1905]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 101

[ET Docket No. 98-206, RM-9147, RM-9245; FCC 00-418]


Multichannel Video and Data Distribution Service (MVDDS)

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: This document proposes to authorize MVDDS in the 12.2-12.7 GHz 
band. The Commission seeks comment on various technical and service 
issues concerning authorizing MVDDS in the band, including: technical 
sharing criteria between MVDDS and Broadcast Satellite Services (BSS) 
and between MVDDS and Non-geostationary Orbit Fixed Satellite Services 
(NGSO FSS); service areas and frequency assignments; permissible 
operations, eligibility requirements and regulatory status of MVDDS; 
other service, technical and licensing rules; disposition of pending 
applications filed by Broadwave USA, PDC Broadband Corporation, and 
Satellite Receivers, Ltd.; and use of the Commission's general 
competitive bidding rules in the event an auction is conducted.

DATES: Comments are due on or before March 12, 2001 and reply comments 
are due on or before March 26, 2001.

FOR FURTHER INFORMATION CONTACT: MVDDS licensing and service issues: 
Jennifer Burton, Public Safety and Private Wireless Division, Wireless 
Telecommunications Bureau, (202) 418-7581, or Nese Guendelsberger, 
Auctions and Industry Analysis Division, Wireless Telecommunications 
Bureau, (202) 418-0634, or via E-mail to [email protected] or 
[email protected]. MVDDS spectrum sharing issues: Tom Derenge, Spectrum 
Policy Branch, Office of Engineering and Technology, (202) 418-2451 or 
via E-mail to [email protected].

SUPPLEMENTARY INFORMATION:   
    1. This is a summary of the Commission's Further Notice of Proposed 
Rule Making (Further NPRM), FCC 00-418 in ET Docket No. 98-206, adopted 
November 29, 2000, and

[[Page 7608]]

released on December 8, 2000. The full text of this Further NPRM is 
available for inspection and copying during normal business hours in 
the FCC Reference Center, Room CY-A257, 445 12th Street, SW., 
Washington, DC The complete text may be purchased from the Commission's 
copy contractor, International Transcription Service, Inc., 1231 20th 
Street, NW. Washington, DC 20037. The full text may also be downloaded 
at: www.fcc.gov. Alternative formats are available to persons with 
disabilities by contacting Jenifer Simpson at (202) 418-0008 or TTY 
(202) 418-2555.

Summary of the Further Notice of Proposed Rule Making

    2. Given the decision to permit MVDDS operations in the 12.2-12.7 
GHz band, in the Further NPRM, the Commission seeks comment on 
technical sharing criteria between MVDDS and BSS and NGSO FSS, and on 
MVDDS service, technical, and licensing rules under part 101 of the 
Commission's rules. In addition, the Commission seeks comment on 
whether to license the 12.2-12.7 GHz band on the basis of geographic 
areas and on whether to license MVDDS to one spectrum block of 500 
megahertz per geographic area.
    3. Moreover, the Commission seeks comment on whether to allow 
partitioning of MVDDS and on whether to restrict spectrum 
disaggregation. The Commission also seeks comment on the permitted 
services, eligibility requirements and regulatory status of MVDDS in 
the 12.2-12.7 GHz band, including whether licensees should be required 
to meet must-carry obligations and provide all local TV channels to 
every subscriber.
    4. Further, the Commission proposes to require incumbent non-public 
safety Private Operational Fixed Service (``POFS'') licensees in the 
12.2-12.7 GHz band to protect MVDDS and NGSO FSS operations from 
harmful interference. The Commission seeks comment on the disposition 
of pending 12.2-12.7 GHz applications filed by Broadwave USA, PDC 
Broadband Corporation, and Satellite Receivers, Ltd., as well.
    5. Finally, in the event that an auction is conducted for MVDDS 
licenses in the 12.2-12.7 GHz band, the Commission proposes to use the 
general competitive bidding rules set forth in Part 1, Subpart Q, of 
its rules and to define three tiers of small businesses that would be 
eligible for bidding credits.

Initial Regulatory Flexibility Analysis

    6. 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 Further Notice of Proposed Rule 
Making (Further NPRM). 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 Further NPRM provided above 
in paragraph 346. The Commission will send a copy of the Further NPRM, 
including this IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration. See 5 U.S.C. 603(a). In addition, the Further 
NPRM and IRFA (or summaries thereof) will be published in the Federal 
Register. See id.

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

    7. This rule making is being initiated to adopt licensing, service 
and technical rules for the Multichannel Video Data and Distribution 
Service (MVDDS) at 12.2-12.7 GHz. Our objectives are: (1) to 
accommodate the introduction of innovative services; and (2) to 
facilitate the sharing and efficient use of spectrum.

B. Legal Basis for Proposed Rules

    8. The proposed action is authorized under the Administrative 
Procedure Act, 5 U.S.C. 553; and sections 1, 4(i), 7, 301, 303, 308 and 
309(j) of the Communications Act of 1934, as amended, 47 U.S.C. 151, 
154(i), 157, 301, 303, 308 and 309(j).

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

    9. 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 the Small Business Act. A small business 
concern is one which: (1) is independently owned and operated; (2) is 
not dominant in its field of operation; and (3) satisfies any 
additional criteria established by the Small Business Administration 
(SBA). A small organization is generally ``any not-for-profit 
enterprise which is independently owned and operated and is not 
dominant in its field.''
    10. The definition of small entity under the SBA rules for the 
radiotelephone industry provides that a small entity is a 
radiotelephone company employing fewer than 1,500 persons. The 1992 
Census of Transportation, Communications, and Utilities, conducted by 
the Bureau of the Census, which is the most recent information 
available, shows that only 12 radiotelephone firms out of a total of 
1,178 such firms that operated during 1992 had 1,000 or more employees. 
As of 1992, there were approximately 275,801 small organizations 
nationwide. ``Small governmental jurisdiction'' generally means 
``governments of cities, counties, towns, townships, villages, school 
districts, or special districts, with a population of less than 
50,000.'' As of 1992, there were approximately 85,006 such 
jurisdictions in the United States. This number includes 38,978 
counties, cities, and towns; of these, 37,566, or ninety-six (96) 
percent, have populations of fewer than 50,000. The Census Bureau 
estimates that this ratio is approximately accurate for all 
governmental entities.
    11. The proposed rules will affect all entities that intend to 
provide terrestrial MVDDS operations in the 12.2-12.7 GHz band. In the 
Further NPRM, the Commission seeks comment on whether to permit MVDDS 
licensees to use spectrum in the 12.2-12.7 GHz band for fixed one-way 
direct-to-home/business video and data services, as well as other types 
of services to which the spectrum may be used. The Commission states 
that it envisions the use of this spectrum for video service, but 
concedes that it does not know precisely the other types of services 
that licensees may seek to provide.
    12. If an auction is conducted for MVDDS, the Commission proposes 
to define three tiers of small businesses for the purpose of providing 
bidding credits to small entities. The Commission proposes to define 
the three tiers of small businesses as follows: an ``entrepreneur'' 
would be an entity with average annual gross revenues not exceeding $40 
million for the preceding three years; a ``small business'' would be an 
entity with average annual gross revenues not exceeding $15 million for 
the preceding three years; and a ``very small business'' would be an 
entity with average annual gross revenues not exceeding $3 million for 
the preceding three years. The Commission will not know how many 
auction participants or licensees will qualify under these proposed 
definitions as entrepreneurs, small businesses, or very small 
businesses unless and until an auction is held. Even after that, the 
Commission will not know how many licensees will partition their 
license areas or disaggregate their spectrum blocks, if

[[Page 7609]]

partitioning and disaggregation are allowed. In view of our lack of 
knowledge about the entities that will seek MVDDS licenses, we assume 
that, for purposes of our evaluations and conclusions in the IRFA, all 
prospective licensees are entrepreneurs, small businesses, or very 
small businesses under our proposed definitions. We invite comment on 
this analysis.

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

    13. Applicants for MVDDS licenses may be required to submit 
applications. If an auction is held, applicants will be required under 
our proposed rules to submit an FCC Form 175 short-form application 
prior to the auction, and auction winners will be required to file an 
FCC Form 601 license application. Additionally, the Commission proposes 
to require the filing of certain documents (e.g., coverage maps) to 
substantiate renewal expectancies with information demonstrating 
substantial service upon license renewal. We request comment on how 
these proposed requirements can and/or should 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

    14. 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.
    15. We have reduced burdens wherever possible. To provide 
opportunities for small entities to participate in any auction that is 
held, we propose to provide bidding credits for entrepreneurs, small 
businesses, and very small businesses as defined in Section C of this 
IRFA. The bidding credits proposed are 15 percent for entrepreneurs, 25 
percent for small businesses, and 35 percent for very small businesses. 
In the Further NPRM, the Commission seeks comment on its proposed small 
business definitions and bidding credits, thus providing interested 
parties with an opportunity to suggest alternatives. Our proposed 
partitioning and disaggregation rules are also intended to help small 
entities acquire licenses. The regulatory burdens we have retained are 
necessary in order to ensure that the public receives the benefits of 
innovative new services in a prompt and efficient manner. We will 
continue to examine alternatives in the future with the objectives of 
eliminating unnecessary regulations and minimizing any significant 
economic impact on small entities. We seek comment on significant 
alternatives commenters believe we should adopt.

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

    16. None.

Ordering Clauses

    17. Pursuant to the authority contained in Sections 1, 4(i), 7(a), 
301, 303(c), 303(f), 303(g), 303(r), 308, and 309(j) of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 157(a), 
301, 303(c), 303(f), 303(g), 303(r), 308, and 309(j), this Further 
Notice of Proposed Rule Making IS ADOPTED.
    18. The Commission's Consumer Information Bureau, Reference 
Information Center, SHALL SEND a copy of this Further Notice of 
Proposed Rule Making, including the Initial Regulatory Flexibility 
Analysis, in a report to Congress pursuant to the Small Business 
Regulatory Enforcement Fairness Act of 1996, see 5 U.S.C. 801(a)(1)(A); 
and shall also send a copy of the Further Notice of Proposed Rule 
Making, including the Initial Regulatory Flexibility Analysis, to the 
Chief Counsel for Advocacy of the Small Business Administration. A 
summary of the Further Notice of Proposed Rule Making will be published 
in the Federal Register. See 5 U.S.C. 605(b).

Lists of Subjects in 47 CFR Part 101

    Communications equipment, Radio.

    Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Proposed Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 47 CFR part 101 as follows:

PART 101--FIXED MICROWAVE SERVICES

    1. The authority citation for part 101 would continue to read as 
follows:

    Authority: 47 U.S.C. 154, 303.

    2. Section 101.3 is amended by adding a new definition for 
Multichannel Video Distribution and Data Service in alphabetical order 
to read as follows:


Sec. 101.3  Definitions.

* * * * *
    Multichannel Video Distribution and Data Service (MVDDS) is a 
microwave service licensed in the 12.2.-12.7 GHz band that provides 
various wireless services.
* * * * *
    3. Section 101.101 is amended by revising the entry for 12,200-
12,700 MHz table to read as follows:


Sec. 101.101  Frequency availability.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                        Radio Service
                                    --------------------------------------------------------------------------------------------------------------------
       Frequency band  (MHz)                                                                                 Other (Parts 15, 21,
                                      Common carrier  (Part   Private radio  (Part    Broadcast auxiliary     24, 25, 74, 78, &            Notes
                                              101)                    101)                 (Part 74)                 100)
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                   *                  *                  *                  *                  *                  *                  *
12,200-12,700......................  MVDDS.................  MVDDS, OFS............  .....................  DBS, NGSO............
 
                   *                  *                  *                  *                  *                  *                  *
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 7610]]

    4. Section 101.103 is amended by revising paragraph (f) to read as 
follows:


Sec. 101.103  Frequency coordination procedures.

    (f) When the proposed facilities are to be operated in the band 
12,200-12,700 MHz, licensees must follow the procedures, technical 
standards, and requirements of Sec. 101.105 in order to protect the 
stations authorized under part 100 of this chapter.
    5. Section 101.105 is amended by adding paragraphs (a)(4) and 
(a)(5) and by revising paragraph (d) introductory text to read as 
follows:


Sec. 101.105  Interference protection criteria.

* * * * *

Option One for Paragraph (a)(4)

    (a)(4) MVDDS stations must operate on a non-harmful interference 
basis to Direct Broadcast Satellite (DBS) receivers. Interference to 
DBS receivers shall not increase the total outage of any system by more 
than XX per year. Except for public safety entities, harmful 
interference protection from MVDDS stations to incumbent point-to-point 
12 GHz fixed stations is not required. Incumbent point-to-point private 
operational fixed 12 GHz stations, except for public safety entities, 
are required to protect MVDDS stations under the process described in 
Sec. 101.103(d).

Option Two for Paragraph (a)(4)

    (a)(4) MVDDS stations must operate on a non-harmful interference 
basis to Direct Broadcast Satellite (DBS) receivers. Interference to 
DBS receivers shall not increase the total outage of any system by more 
than XX minutes per year. Except for public safety entities, harmful 
interference protection from MVDDS stations to incumbent point-to-point 
12 GHz fixed stations is not required. Incumbent point-to-point private 
operational fixed 12 GHz stations, except for public safety entities, 
are required to protect MVDDS stations under the process described in 
Sec. 101.103(d).

Option Three for Paragraph (a)(4)

    (a)(4) MVDDS stations must operate on a non-harmful interference 
basis to Direct Broadcast Satellite (DBS) receivers. MVDDS shall not 
decrease the C/I of any system below XX. Except for public safety 
entities, harmful interference protection from MVDDS stations to 
incumbent point-to-point 12 GHz fixed stations is not required. 
Incumbent point-to-point private operational fixed 12 GHz stations, 
except for public safety entities, are required to protect MVDDS 
stations under the process described in Sec. 101.103(d).
    (a)(5) All stations operating under this part must protect the 
radio quiet zones as required by Sec. 1.924 of this chapter. Stations 
authorized by competitive bidding are cautioned that they must receive 
the appropriate approvals directly from the relevant quiet zone prior 
to operating.
* * * * *
    (d) Effective August 1, 1985, when a fixed station that conforms to 
the technical standards of this subpart (or, in the case of the 12,200-
12,700 MHz band for incumbent non-MVDDS stations, a direct broadcast 
satellite station) receives or will receive interference in excess of 
the levels specified in this section as a result of an existing 
licensee's use of non-conforming equipment authorized between July 20, 
1961 and July 1, 1976, and the interference would not result if the 
interfering station's equipment complied with the current technical 
standards, the licensee of the non-conforming station must take 
whatever steps are necessary to correct the situation up to the point 
of installing equipment which fully conforms to the technical standards 
of this subpart. In such cases, if the engineering analysis 
demonstrates that:
* * * * *
    6. Section 101.107 is amended by revising footnote 6 to the Table 
in paragraph (a) to read as follows:


Sec. 101.107  Frequency tolerance.

    (a) * * *
    (6) Applicable to private operations fixed point-to-point microwave 
stations and stations providing MVDDS service.
* * * * *
    7. Section 101.109 is amended by revising the entry for 12,200-
12,700 MHz and by adding footnote 8 in the Table at the end of the 
section to read as follows:


Sec. 101.109  Bandwidth.

* * * * *
    (c) * * *

------------------------------------------------------------------------
           Frequency band (MHz)             Maximum authorized bandwidth
------------------------------------------------------------------------
 
                  *        *        *        *        *
12,200 to 12,700..........................  500 MHz \8\
 
                  *        *        *        *        *
------------------------------------------------------------------------
\8\ For incumbent private operational fixed point-to-point stations in
  this band the maximum bandwidth shall be 20 MHz.

    8. Section 101.113 is amended by revising the entry for 12,200-
12,700 MHz in the table and adding footnote 10 to the table in 
paragraph (a) to read as follows:


Sec. 101.113  Transmitter power limitations.

    (a) * * *

------------------------------------------------------------------------
                                      Maximum allowable  EIRP (1)(2)
      Frequency band  (MHz)      ---------------------------------------
                                     Fixed  (dBW)        Mobile  (dBW)
------------------------------------------------------------------------
 
                  *        *        *        *        *
12,200 to 12,700 \11\...........  +50
 
                  *        *        *        *        *
------------------------------------------------------------------------
\11\ The urban area eirp for MVDDS stations is limited to 12.5 dBm (-
  17.5 dBw) with two exceptions. The exceptions are those MVDDS systems
  where the transmitter is mounted on a mountain ridge that is over one
  kilometer from populated subscriber areas may use a higher eirp up to
  +10 dBw, provided that the increase will not cause the system to
  exceed the ``unavailability criteria'' we develop and MVDDS
  transmitting systems located on tall structures that are adjacent to
  bodies of water or other significant and clearly unpopulated areas,
  may use a higher eirp up to +10 dBw, provided that the increase will
  not cause the system to exceed the ``unavailability criteria''.
  Incumbent point-to-point stations may use up to +50 dBW except for low
  power systems licensed under Sec.  101.147(q).

    9. Section 101.115 is amended by revising footnote 9 to the table 
in paragraph (c) to read as follows:


Sec. 101.115  Directional antennas.

* * * * *
    (c) * * *
    (\9\) Except for Temporary-fixed operations in the band 13200-13250 
MHz with output powers less than 250 mW and as provided in 
Sec. 101.147(q), and except for receive antennas in the MVDDS service 
which shall only be required to have a minimum antenna gain of 34 dBi 
and may use circular or linear polarization.
* * * * *
    10. Section 101.139 is amended by revising the last sentence of 
paragraph (a) to read as follows:


Sec. 101.139  Authorization of transmitters.

    (a) * * * Transmitters designed for use in the 31.0-31.3 GHz band 
and transmitters designed for MVDDS use in the 12,200-12,700 MHz band 
will be authorized under the verification procedure.
* * * * *
    11. Section 101.141 is amended by revising paragraph (a) 
introductory text to read as follows:


Sec. 101.141  Microwave modulation.

    (a) Microwave transmitters employing digital modulation techniques 
and

[[Page 7611]]

operating below 19.7 GHz must, with appropriate multiplex equipment, 
comply with the following additional requirements (except for MVDDS 
stations in the 12,200-12,700 MHz band):
* * * * *
    12. Section 101.147 is amended by:
    a. Revising the entries in the frequency assignment table in 
paragraph (a) for 12,200-12,500 MHz and 12,500-12,700 MHz with a new 
footnote 31.
    b. Adding a new sentence immediately succeeding the last sentence 
of paragraph (p).
    c. Adding a new sentence at the beginning of paragraph (q).
    The additions and revisions are as follows:


Sec. 101.147  Frequency assignments.

    (a) * * *
    * * *
    12,200-12,700 MHz \31\
---------------------------------------------------------------------------

    \31\ Frequencies in this band are shared with Direct Broadcast 
Satellites on a secondary non-harmful interference basis and on a 
co-primary basis with non-geostationary satellites and can be used 
only for incumbent private operational fixed point-to-point service 
on a site by site basis and MVDDS on a [geographical basis by 
geographic areas or other basis]. Incumbent public safety licensees 
shall be afforded protection from MVDDS and NGSO licensees, however 
all other licensees shall be secondary to MVDDS and NGSO licensees.
---------------------------------------------------------------------------

    * * *
* * * * *
    (p) * * * The 12.2-12.7 GHz band is also authorized for MVDDS 
service on a non-harmful interference basis to DBS receivers in this 
band and on a co-primary basis with NGSO FSS stations.

Option One for Paragraph (q)

    (q) Applications for low power stations in the 12.2-12.7 GHz band 
are accepted. Existing stations are grandfathered. * * *

Option Two for Paragraph (q)

    (q) Applications for low power stations in the 12.2-12.7 GHz band 
are no longer accepted. Existing stations are grandfathered. * * *
    13. Section 101.601 is amended by adding a sentence immediately 
following the last sentence of the paragraph to read as follows:


Sec. 101.601  Eligibility.

    * * *This subpart shall not apply to stations offering MVDDS in the 
12.2-12.7 GHz band.
* * * * *
    14. Subpart P is added to part 101 to read as follows:

Subpart P--Multichannel Video Distribution and Data Service Rules 
for the 12.2-12.7 GHZ Band

101.1401   Service areas.
101.1403   Must carry rules.
101.1405   Channeling plan.
101.1407   Permissible operations for MVDDS.
101.1409   Treatment of incumbent licensees.
101.1411   Regulatory status and eligibility.
101.1413   License term and renewal expectancy.
101.1415   Partitioning and disaggregation.
101.1417   Annual report.
101.1421   Coordination of adjacent area MVDDS stations.
101.1423   Canadian and Mexican coordination.
101.1425   RF safety.
101.1427   Over-the-air reception devices rules (OTARD).
101.1437   MVDDS licenses subject to competitive bidding.
101.1438   Designated entities.


Sec. 101.1401  Service areas.

Option One for Section 101.1401

    Multichannel Video Distribution and Data Service (MVDDS) is 
licensed on the basis of geographic areas. Each geographic area shall 
be licensed to one licensee.

Option Two for Section 101.1401

    Multichannel Video Distribution and Data Service (MVDDS) is 
licensed on a site-by-site basis.


Sec. 101.1403  Must carry rules.

Option One for Section 101.1403

    Licensees are required to provide all local television channels to 
subscribers within its area. If a license is partitioned, all relevant 
parties must provide every customer with all the local television 
channels in the entire area, not a portion thereof. MVDDS licensees are 
required to comply with the must-carry rules. See Multichannel Video 
and Cable Television Service Rules, subpart D (Carriage of Television 
Broadcast Signals), 47 CFR 76.51 through 76.70.

Option One for Section 101.1403

    Licensees are not required to provide all local television channels 
to subscribers within its area. MVDDS licensees are not required to 
comply with the must-carry rules. See Multichannel Video and Cable 
Television Service Rules, subpart D (Carriage of Television Broadcast 
Signals), 47 CFR 76.51 through 76.70.


Sec. 101.1405  Channeling plan.

Option One for Section 101.1405

    Each license shall have one spectrum block of 500 megahertz per 
geographic area that can be divided into any size channels and should 
provide various digital wireless services to subscribers. 
Disaggregation is not allowed.

Option Two for Section 101.1405

    Each license shall have one spectrum block of 500 megahertz per 
geographic area that can be divided into any size channels and should 
provide various digital wireless services to subscribers. 
Disaggregation is allowed.


Sec. 101.1407  Permissible operations for MVDDS.

    MVDDS licensees must use spectrum in the 12.2-12.7 GHz band for 
digital fixed one-way direct-to-home/office wireless service. Mobile 
and aeronautical services are not authorized. Two-way services may be 
provided by using other spectrum or media for the return path.


Sec. 101.1409  Treatment of incumbent licensees.

    Terrestrial point-to-point licensees in the 12.2-12.7 GHz band 
which were licensed prior to MVDDS or NGSO satellite stations are 
incumbent point-to-point stations and are not entitled to protection 
from harmful interference caused by later MVDDS or NGSO FSS entrants in 
the 12.2-12.7 GHz band, except for public safety stations which must be 
protected. MVDDS and NGSO FSS operators have the responsibility of 
resolving any harmful interference problems that their operations may 
cause to these incumbent point-to-point operations in the 12.2-12.7 GHz 
band. Incumbent public safety terrestrial point-to-point licensees may 
only make minor changes to their stations without losing this 
protection. This does not relieve current point-to-point licensees of 
their obligation to protect BSS operations in the subject frequency 
band. Point-to-point applications for new licenses, major amendments, 
or major modifications for the 12.2-12.7 GHz band are no longer 
accepted, including low-power operations.


Sec. 101.1411  Regulatory status and eligibility.

Option One for Paragraph (a)

    (a) MVDDS licensees are allowed to provide one-way video 
programming and data services on a non-common carrier basis. MVDDS is 
not treated as a common carrier service and is prohibited from 
providing switched voice and data services.

Option Two for Paragraph (a)

    (a) MVDDS licensees are allowed to provide one-way video 
programming and data services on a non-common

[[Page 7612]]

carrier basis. MVDDS is treated as a common carrier service and is 
permitted to provide switched voice and data services.
    (b) MVDDS licensees in the 12.2-12.7 GHz band are subject to the 
requirements set forth in Section 101.7 of the Commission's Rules.


Sec. 101.1413  License term and renewal expectancy.

    (a) The MVDDS license term is ten years, beginning on the date of 
the initial authorization grant.
    (b) Application of a renewal expectancy is based on the substantial 
service requirement which we define as a service that is sound, 
favorable, and substantially above a level of medocre service which 
might minimally warrant renewal. At the end of the license term, the 
Commission will consider factors such as:
    (1) Whether the licensee's operations service niche markets or 
focus on serving populations outside of areas serviced by other 
licensees;
    (2) Whether the licensee's operations serve populations with 
limited access to telecommunications services; and
    (3) A demonstration of service to a significant portion of the 
population or land area of the licensed area.
    (c) The renewal application of a MVDDS licensee must include the 
following showings in order to claim a renewal expectancy:
    (1) A coverage map depicting the served and unserved areas;
    (2) A corresponding description of current service in terms of 
geographic coverage and population served or links installed in the 
served areas; and
    (3) Copies of any Commission Orders finding the licensee to have 
violated the Communications Act or any Commission rule or policy and a 
list of any pending proceedings that relate to any matter described by 
the requirements for the renewal expectancy.


Sec. 101.1415  Partitioning and disaggregation.

Option One for Section 101.1415

    MVDDS operators are allowed to partition licensed geographic areas. 
Disaggregation will be permitted by MVDDS licensees in the 12.2-12.7 
GHz band. ``Partitioning'' is the assignment of geographic portions of 
a license along geopolitical or other boundaries. ``Disaggregation'' is 
the assignment of discrete portions or ``blocks'' of spectrum licensed 
to a geographic licensee or qualifying entity.

Option Two for Section 101.1415

    MVDDS operators are allowed to partition licensed geographic areas. 
Disaggregation will not be permitted by MVDDS licensees in the 12.2-
12.7 GHz band. ``Partitioning'' is the assignment of geographic 
portions of a license along geopolitical or other boundaries. 
``Disaggregation'' is the assignment of discrete portions or ``blocks'' 
of spectrum licensed to a geographic licensee or qualifying entity.


Sec. 101.1417  Annual report.

    Each MVDDS licensee shall file with the Commission two copies of a 
report by March 1 of each year for the preceding calendar year. This 
report must include the following:
    (1) Name and address of licensee;
    (2) Station(s) call letters and primary geographic service area(s); 
and
    (3) The following statistical information for the licensee's 
station (and each channel thereof):
    (i) The total number of separate subscribers served during the 
calendar year;
    (ii) The total hours of transmission service rendered during the 
calendar year to all subscribers;
    (iii) The total hours of transmission service rendered during the 
calendar year involving the transmission of local broadcast signals; 
and
    (iv) A list of each period of time during the calendar year in 
which the station rendered no service as authorized, if the time period 
was a consecutive period longer than 48 hours.


Sec. 101.1421  Coordination of adjacent area MVDDS stations.

    MVDDS licensees in the 12.2-12.7 GHz band are required to develop 
sharing and protection agreements based on the design and architecture 
of their systems, in order to ensure that no harmful interference 
occurs within the same geographic area or between adjacent licensees or 
between adjacent areas.


Sec. 101.1423  Canadian and Mexican coordination.

    Pursuant to Sec. 2.301 of this chapter, MVDDS systems in the United 
States within 56 km (35 miles) of the Canadian and Mexican border are 
granted conditional licenses, until final international agreements are 
approved. These systems may not cause harmful interference to stations 
in Canada or Mexico.


Sec. 101.1425  RF safety.

    Stations with output powers that equal or exceed 1640 watts eirp 
will be subject to the routine environmental evaluation rules for 
radiation hazards, as set forth in Sec. 1.1307 of this chapter.


Sec. 101.1427  Over-the-air reception devices rule (OTARD).

    The Over-the-Air Reception Devices Rule (OTARD) in Sec. 1.4000 of 
this chapter shall apply to the receive-only MVDDS antennas at 
subscribers' homes or offices.


Sec. 101.1437  MVDDS licenses subject to competitive bidding.

    Mutually exclusive initial applications for MVDDS licenses in the 
12.2-12.7 GHz 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. 101.1438  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 annual 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 annual 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 annual 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 paragraphs (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 7613]]

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. 01-1905 Filed 1-23-01; 8:45 am]
BILLING CODE 6712-01-P