[Federal Register Volume 66, Number 113 (Tuesday, June 12, 2001)]
[Proposed Rules]
[Pages 31589-31596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-14741]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 22 and 24

[WT Docket No. 01-108; FCC 01-153]


Year 2000 Biennial Regulatory Review To Modify or Eliminate 
Outdated Rules Affecting the Cellular Radiotelephone Service and the 
Commercial Mobile Radio Services

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Commission, pursuant to its year 2000 
Biennial Review of regulations, proposes to modify or eliminate 
regulations that have become outdated as a result of technological 
change, increased competition in the Commercial Mobile Radio Services 
(CMRS), supervening changes to related Commission rules, or a 
combination of these factors. The Commission focuses its review on the 
cellular rules, although it also considers modification or elimination 
of certain other rules that affect all Public Mobile Services. The NPRM 
specifically addresses the following rules: cellular service 
requirements and limitations; cellular technical rules, including the 
analog cellular compatibility standard, the electronic serial number 
rule, channelization requirements, modulation requirements and in-band 
emissions limitations, the wave polarization requirement, assignment of 
system identification numbers, determination of cellular geographic 
service area, and service commencement and construction periods; the 
incidental services rule; and the cellular anti-trafficking rules.

DATES: Comments are due on or before July 2, 2001; reply comments are 
due on or before August 1, 2001. Written comments by the public on the 
proposed information collections are due on or before July 2, 2001. 
Written comments must be submitted by the Office of Management and 
Budget (OMB) on the modified information collection(s) on or before 
August 13, 2001.

ADDRESSES: Parties who choose to file comments by paper should send 
comments to the Commission's Secretary, Magalie Roman Salas, Office of 
the Secretary, Federal Communications Commission, 445 12th Street, SW.; 
TW-A325; Washington, DC 20554. Comments filed through the Commission's 
Electronic Comment Filing System (ECFS) can be sent as an electronic 
file via the Internet to
http://www.fcc.gov/e-file/ecfs.html. 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, DC 20554, or via the Internet to [email protected], and to 
Edward C. Springer, OMB Desk Officer, Room 10236 NEOB, 725 17th Street, 
NW., Washington, DC 20503 or via the Internet to 
[email protected].

FOR FURTHER INFORMATION CONTACT: Lauren Van Wazer at (202) 418-0030 
(Wireless Telecommunications Bureau). For additional information 
concerning the information collection(s) 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 Notice of Proposed 
Rulemaking (``NPRM'') in WT Docket No. 01-108, FCC 01-153, adopted May 
3, 2001 and released May 17, 2001. The complete text of the document is 
available for inspection and copying during normal business hours in 
the FCC Reference Center, 445 12th Street, SW., Washington, DC and also 
may be purchased from the Commission's copy contractor, International 
Transcription Services, (202) 857-3800, 445 12th Street, SW., CY-B400, 
Washington, DC 20554. The document is also available via the Internet 
at http://www.fcc.gov/Bureaus/Wireless/Orders/2000/fcc01153.pdf. This 
Notice of Proposed Rulemaking contains proposed information 
collection(s) subject to the Paperwork Reduction Act of 1995 (PRA). It 
has been submitted to the Office of Management and Budget (OMB) for 
review under the PRA. OMB, the general public, and other Federal 
agencies are invited to comment on the proposed information collections 
contained in this proceeding.

I. Paperwork Reduction Act

    1. This NPRM contains proposed revisions to existing information 
collections. The Commission, as part of its continuing effort to reduce 
paperwork burdens, invites the general public and the Office of 
Management and Budget (OMB) to comment on the information collection(s) 
contained in this NPRM, as required by the Paperwork Reduction Act of 
1995, Public Law 104-13. Public and agency comments are due at the same 
time as other comments on this Notice; OMB notification of action is 
due 60 days from date of publication of this NPRM in the Federal 
Register. Comments should address: (a) Whether the proposed 
modifications to existing information collections are necessary for the 
proper performance of the functions of the Commission, including 
whether the information shall have practical utility; (b) the accuracy 
of the Commission's burden estimates; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) 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.
    2. The information collection requirements of 47 CFR 22.901, which 
is contained in OMB 3060-0508 (66 FR 109), is being proposed for 
elimination. Further, the Commission proposes to revise the information 
collection associated with 47 CFR 22.937, which is also contained in 
OMB 3060-0508. By revising 47 CFR 22.937 to eliminate the financial 
demonstration requirement for all cellular licensees who are not 
competing with cellular renewal licensees, the Commission thus 
eliminates the information collection

[[Page 31590]]

requirement(s) associated with this rule section.
    OMB Control No.: 3060-0508.
    Title: Rewrite and Update of Part 22.
    Form No.: N/A.
    Type of Review: Revision of currently approved collection.
    Respondents: Business or other for-profit.
    Number of Respondents: 166,732.
    Frequency of Response: On occasion, quarterly, semi-annually, 
annually.
    Total Annual Burden: 250,415 hours.
    Total Annual Cost: 0.
    Needs and Uses: Part 22 contains the technical and legal 
requirements for radio stations operating in the Public Mobile 
Services. Generally the collected information is used to determine 
legal, technical and/or financial qualifications of the respondents.

II. Introduction

    3. This Notice of Proposed Rulemaking initiates a proceeding as 
part of the Commission's year 2000 Biennial Review of regulations 
pursuant to Section 11 of the Communications Action of 1934, as 
amended, 47 U.S.C. 161 (Communications Act). Section 11 requires the 
Commission to review all of its regulations applicable to providers of 
telecommunications services, and to determine whether any rule is no 
longer in the public interest as a result of meaningful economic 
competition between providers of telecommunications service and whether 
such regulations should be deleted or modified. As a result, the NPRM 
sets forth and seeks comment on specific proposed changes to several 
CMRS service rules.

III. Background

    4. In connection with the Commission's year 2000 Biennial Review, 
in CC Docket No. 00-175, FCC 00-456 (rel. Jan. 17, 2001) (not published 
in the Federal Register), the Commission staff prepared a comprehensive 
review of regulations that affect telecommunications service providers. 
The Commission subsequently issued a report endorsing recommendations 
made by staff as a result of that review. In the staff report, the 
staff notes that many of the part 22 rules regulating cellular 
telephone service date back to the inception of the service in the 
early 1980s, when the two cellular carriers in each market were the 
only providers of mobile telephony, thus creating a ``duopoly'' market 
for this service. The staff report recommends initiating a rulemaking 
to review the cellular rules and consider which of these rules are 
obsolete as a result of the technological advances and growth of 
competition that have occurred in mobile telephony since the rules were 
adopted. The report also recommends review of certain other Part 22 
rules on the same basis. This NPRM addresses many of the issues 
identified in the staff Biennial Review report.

IV. Discussion

    5. This NPRM sets forth and seeks comment on specific proposed 
changes to several service rules. The following specific rules and 
issues are addressed in the item: (1) Cellular service requirements and 
limitations (Sec. 22.901); (2) Advanced Mobile Phone Service (AMPS) 
analog cellular compatibility standard (Secs. 22.901 and 22.933); (3) 
manufacturing and design requirements governing the security of 
electronic serial numbers (ESNs) in cellular telephones (Sec. 22.919); 
(4) cellular channelization rules (Sec. 22.905); (5) cellular analog 
modulation requirement and out-of-band emissions limitations 
(Secs. 22.915 and 22.917), as well as out-of-band emissions rules for 
broadband Personal Communications Service (PCS); (6) cellular wave 
polarization requirement (Sec. 22.367(a)(4)); (7) rule governing 
cellular System Identification Numbers (SIDs) (Sec. 22.941); (8) 
alternative methods for determining a Cellular Geographic Service Area 
(CGSA) (Sec. 22.911); (9) service commencement and construction period 
rules (Sec. 22.946); (10) incidental services rules (Sec. 22.323); and 
(11) cellular anti-trafficking rules (Secs. 22.937, 22.943, and 
22.945). Each of these issues will be discussed briefly in turn.
    6. Cellular Service Requirements and Limitations (Sec. 22.901). 
Although this rule has been amended several times since its adoption, 
the NPRM notes that it appears outdated in several respects. First, the 
rule is drafted as though the principal technology employed is analog, 
which is no longer true. The NPRM proposes revising the rule to avoid 
characterizing any particular technology as either primary or 
alternative. Second, the NPRM seeks comment on the various types of 
service area information provided by non-cellular CMRS carriers, as 
well as whether the requirement for cellular carriers to provide 
reliable service area information is still necessary in light of the 
current level of competition for CMRS services. Also, the NPRM seeks 
comments on modifying or eliminating other provisions of the rule.
    7. Advanced Mobile Phone Service (AMPS) analog cellular 
compatibility standard (Sec. 22.901 and 22.933). Currently, cellular 
carriers are required to provide analog service in accord with the 
Advanced Mobile Phone Service (AMPS) specifications referenced and 
incorporated in the April 1981 version of Office of Engineering and 
Technology (OET) Bulletin No. 53. The NPRM seeks comment on whether the 
Commission should update or eliminate this standard in light of 
technological and market developments since the adoption of the 
requirement. In particular, the NPRM seeks comment on the possible 
impact of eliminating this rule on certain existing programs and 
services, and notes that the Commission is reluctant to eliminate the 
standard if doing so will significantly impair the access of users of 
analog-dependent technology to wireless telecommunications services.
    8. Electronic Serial Number (ESN) rule (Sec. 22.919). Section 
22.919 sets forth various design requirements for manufacturers of 
cellular telephones, which are not applicable to other CMRS services. 
These requirements were adopted to address the problem of cellular 
cloning fraud, which was prevalent in the early 1990s. Given the 
developments since the Commission promulgated the ESN requirements, 
which include enactment of a statute to address such fraud directly and 
changes in the technologies available to prevent fraud, the NPRM notes 
that many of the original reasons for establishing the ESN requirements 
may no longer be compelling and proposes removing Sec. 22.919 from the 
Commission's rules.
    9. Channelization Requirements (Sec. 22.905). The NPRM tentatively 
concludes that the channelization plan in the rules is no longer 
necessary because analog nationwide compatibility has already been 
established and the principal digital technologies are exempt from this 
plan.
    10. Modulation Requirements and In-Band Emissions Limitations 
(Sec. 22.915). Section 22.915 of the Commission's rules requires that 
cellular systems be capable of providing service using the modulation 
types described in the existing analog compatibility specification. 
Since the adoption of this rule, the Commission has permitted licensees 
more flexibility in choosing the type of technology with which to 
operate. The NPRM seeks comment on how the Commission can define an 
out-of-band emissions limit to provide effective protection from 
interference while allowing licensees flexibility to establish a 
different limit where appropriate.
    11. Wave Polarization Requirement (Sec. 22.367(a)(4)). The 
Commission's current rules require vertical wave polarization. In the 
NPRM, the Commission tentatively concludes that it should relax this 
requirement.

[[Page 31591]]

    12. Assignment of System Identification Numbers (SIDs) 
(Sec. 22.941). Section 22.941 of the Commission's rules sets forth the 
procedure by which the Commission assigns system identification numbers 
(SIDs) in the Cellular Radiotelephone Service. The Commission proposes 
generally eliminating SIDs as a term of cellular licenses, and also 
seeks comment on proposals for SID coordination functions to be carried 
out by an industry organization, rather than the Commission.
    13. Determination of Cellular Geographic Service Area (CGSA) 
(Sec. 22.911(a)). Section 22.911(a) of the Commission's rules sets 
forth a standardized method for determining the CGSA of a cellular 
system using a specific mathematical formula. Section 22.911(b) sets 
forth alternative methods that may be used if a licensee believes that 
the standard method produces a CGSA that substantially differs from the 
actual coverage of its system. The NPRM proposes modifications in this 
rule to clarify the acceptable methods for determining the CGSA.
    14. Service Commencement and Construction Periods (Sec. 22.946). 
This rule sets forth the timing requirements relating to the deployment 
of new cellular systems. The NPRM seeks comment on correcting an 
oversight made during a recent change of the rule, as well as updating 
the rule in light of the level of competition for CMRS services.
    15. Incidental Services Rule (Sec. 22.323). Section 22.323 
authorizes carriers operating in the Public Mobile Radio Services to 
provide other communications services incidental to the primary public 
mobile services, provided certain conditions are met. The NPRM seeks 
comment on eliminating or modifying this rule to provide carriers more 
flexibility in providing wireless services to meet customer demands.
    16. Cellular Anti-Trafficking Rules (Secs. 22.937, 22.943, and 
22.945). These rules were originally adopted to prevent speculation and 
trafficking in cellular licenses at a time when cellular licenses were 
awarded through a lottery process. Given that licenses are now 
principally awarded through the auction process, which in effect offers 
safeguards against speculative purchases of authorizations, the NPRM 
seeks comment on whether the Commission should eliminate or 
substantially modify these rules.

V. Filing Procedures

    17. Pursuant to 47 CFR 1.415 and 1.419, interested parties may file 
comments on or before July 2, 2001, and reply comments on or before 
August 1, 2001. Comments may be filed using the Commission's Electronic 
Comment Filing System (ECFS) or by filing paper copies. See Electronic 
Filing of Documents in Rulemaking Proceedings, 63 FR 24,121 (1998).
    18. 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 electronic comments by 
Internet e-mail. To get 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.
    19. Parties who choose to file by paper must file an original and 
four copies of each filing. All filings must be sent to the 
Commission's Secretary, Magalie Roman Salas, Office of the Secretary, 
Federal Communications Commission, 445 12th Street, SW., TW-A325, 
Washington, DC 20554.
    20. Regardless of whether parties choose to file electronically or 
by paper, parties should also file one copy of any documents filed in 
this docket with the Commission's copy contractor, International 
Transcription Services, Inc., 445 12th Street, SW., CY-B400, 
Washington, DC 20554. Comments and reply comments will be available for 
public inspection during regular business hours in the FCC Reference 
Center, 445 12th Street, SW., Washington, DC 20554. Comments and reply 
comments must include a short and concise summary of the substantive 
arguments raised in the pleading. Comments and reply comments must also 
comply with 47 CFR 1.49, and all other applicable sections of the 
Commission's rules. The Commission also directs all interested parties 
to include the name of the filing party and the date of the filing on 
each page of their comments and reply comments. All parties are 
encouraged to utilize a table of contents, regardless of the length of 
their submission.

VI. Initial Regulatory Flexibility Analysis

    21. As required by the Regulatory Flexibility Act (RFA),\1\ 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 this NPRM, WT Docket No. 01-108. 
Written public comments are requested on this IRFA. Comments must be 
identified as responses to the IRFA and must be filed by the deadline 
for comments on the Notice provided in paragraph 76 of the NPRM. The 
Commission will send a copy of the Notice, including this IRFA, to the 
Chief Counsel for Advocacy of the Small Business Administration.\2\ In 
addition, the Notice and IRFA (or summaries thereof) will be published 
in the Federal Register.\3\
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    \1\ See 5 U.S.C. 603. The RFA, see U.S.C. 601 et seq., has been 
amended by the Contract With America Advancement Act of 1996, Public 
Law 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is 
the Small Business Enforcement Fairness Act of 1996 (SBREFA).
    \2\ See 5 U.S.C. 603(a).
    \3\ See id.
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A. Need for, and Objectives of, the Proposed Rules

    22. As part of our 2000 biennial regulatory review pursuant to 
Section 11 of the Communications Act of 1934, as amended 
(Communications Act), we are required to review all of our regulations 
that are applicable to providers of telecommunications service to 
determine whether any rule is no longer in the public interest. More 
specifically, in the Biennial Review Report, the Commission indicated 
that it would initiate a rulemaking proceeding to identify and address 
potentially outdated technical rules governing cellular service, based 
on the staff's recommendations that were included in the Biennial 
Review Staff Report.\4\ The staff report notes that many of the Part 22 
technical rules regulating cellular telephone service date back to the 
inception of the service in the early 1980s and, given the significant 
technological changes and growth in competition for cellular services 
since that time, the rules may be obsolete. In particular, the NPRM 
seeks comment on elimination of the cellular analog compatibility 
standard and the Electronic Serial Number (ESN) rule, as well as 
modifying several other technical rules.\5\ In the same vein, some of 
the cellular anti-trafficking rules may be outdated because they were 
adopted during a period when the Commission

[[Page 31592]]

resolved mutually exclusive applications for initial cellular services 
through lottery, rather than the current system of resolving such 
mutually exclusive applications through competitive bidding.\6\ We also 
take this opportunity to reevaluate certain other Part 22 rules that 
apply both to cellular and to other CMRS, specifically Sec. 22.323, 
which imposes conditions on the provision of ``incidental'' services by 
Public Mobile Services providers.\7\
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    \4\ Biennial Regulatory Review, CC Docket No. 00-175, Report FCC 
00-456 (adopted December 29, 2000; released January 17, 2001) 
(Biennial Review Report); Biennial Regulatory Review 2000 Updated 
Staff Report, released January 17, 2001 (Biennial Review Staff 
Report).
    \5\ The specific technical rules include: Secs. 22.367(a)(4), 
22.901, 22.905, 22.911, 22.915, 22.917, 22.919, 22.933, 22.941, and 
22.946 of the Commission's rules.
    \6\ The specific cellular anti-trafficking rules include: 
Secs. 22.937, 22.943, and 22.945 of the Commission's rules.
    \7\ See 47 CFR 22.323.
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B. Certification Regarding Broadband PCS

    23. With regard to broadband Personal Communications Service (PCS), 
we certify, pursuant to the RFA, that the proposed changes to 
Sec. 24.238, emissions limitations, would not have ``a significant 
economic impact on a substantial number'' of small broadband PCS 
providers.\8\ The proposed changes to this rule would reduce the 
compliance burden on these entities by allowing these entities greater 
flexibility to establish out-of-band emissions limits to be used at 
specified band edges.\9\ Specifically, the proposed Sec. 24.238(c) 
would allow parties to establish alternative out-of-band emissions 
limits pursuant to private contractual arrangements--a practice that is 
not permitted by the current rule. This proposal would effectively 
codify and expand upon a waiver that the Wireless Telecommunications 
Bureau (Bureau) granted for all broadband PCS licensees in August 
2000.\10\ In that waiver grant, the Bureau waived Sec. 24.238 ``insofar 
as it limits out-of-band emissions on: (1) Adjacent contiguous 
frequency blocks that are separately assigned to the same PCS 
licensees, and (2) adjacent contiguous frequency blocks that are 
assigned to different PCS licensees who have entered into an 
agreement(s) concerning interference protection to the adjacent 
spectrum.'' \11\ The proposed rule change would allow somewhat more 
flexibility to licensees because it would not limit a licensee's 
ability to contract for alternative emissions limitations to only those 
frequency blocks that are both adjacent and contiguous. Because our 
proposed change would effectively codify a waiver that permits greater 
flexibility for broadband PCS licensees, the proposed changes to 
Sec. 24.238 would not have a significant economic impact on broadband 
PCS providers.
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    \8\ See 5 U.S.C. 605.
    \9\ See para. 42, supra.
    \10\ Omnipoint Request for Broadband Declaratory Ruling or 
Waiver Concerning PCS Emissions Limits Rule Section 24.238, DA 00-
1767, 15 FCC Rcd. 13,422 (2000).
    \11\ Id. a para. 1.
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C. Legal Basis

    24. The potential actions on which comment is sought in this NPRM 
would be authorized under Sections 1, 4(i), 11, and 303(r) of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 161, and 
303(r).

D. Description and Estimate of the Small Entities Subject to the Rules

    25. The RFA requires that an initial regulatory flexibility 
analysis be prepared for notice-and-comment rulemaking proceedings, 
unless the Agency certifies that ``the rule will not, if promulgated, 
have a significant impact on a substantial number of small entities.'' 
\12\ The RFA generally defines the term ``small entity'' as having the 
same meaning as the terms ``small business,'' ``small organization,'' 
and ``small governmental jurisdiction.'' \13\ In addition, the term 
``small business'' has the same meaning as the term ``small business 
concern'' under the Small Business Act.\14\ 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 SBA.\15\ This IRFA describes and estimates the 
number of small-entity licensees and manufacturers that may be affected 
if the proposals in this NPRM are adopted.
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    \12\ U.S.C. 603(b)(3).
    \13\ Id. at 601(6).
    \14\ Id. at 601(3) (incorporating by reference the definition of 
``small business concern'' in 15 U.S.C. 632). Pursuant to the RFA, 
the statutory definition of a small business applies ``unless an 
agency, after consultation with the Office of Advocacy of the Small 
Business Administration and after opportunity for public comment, 
establishes one or more definitions of such term which are 
appropriate to the activities of the agency and publishes such 
definition(s) in the Federal Register.'' Id.
    \15\ Small Business Act, 15 U.S.C. 632 (1996).
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    26. This NPRM could result in rule changes that, if adopted, would 
affect small businesses that currently are or may become Cellular 
Radiotelephone Service providers that are regulated under subpart H of 
part 22 of the Commission's rules. In addition, the proposed changes to 
Sec. 22.323 of the Commission's rules would, if adopted, affect service 
providers that are regulated under any provisions of part 22 of the 
Commission's rules. These include, in addition to Cellular 
Radiotelephone Service providers, providers of Paging and 
Radiotelephone (Common Carrier Paging), Air-Ground Radiotelephone, 
Offshore Radiotelephone, and Rural Radiotelephone services. In 
addition, pursuant to Sec. 90.493(b) of the Commission's rules, paging 
licensees on exclusive channels in the 929-930 MHz bands are subject to 
the licensing, construction, and operation rules set forth in part 
22.\16\ As this rulemaking proceeding applies to multiple services, we 
will analyze the number of small entities affected on a service-by-
service basis. In addition to service providers, some of the proposed 
rule changes may also affect manufacturers of cellular 
telecommunications equipment. We will include a separate discussion 
regarding the number of small cellular equipment manufacturing entities 
that are potentially affected by the proposed rule changes.
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    \16\ See 47 CFR 90.493(b).
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    27. Cellular Radiotelephone Service. Neither the Commission nor the 
SBA has developed a definition of small entities applicable to cellular 
licensees. Therefore, the applicable definition of small entity is the 
definition under the SBA rules applicable to radiotelephone (wireless) 
companies. This provides that a small entity is a radiotelephone 
company employing no more than 1,500 persons.\17\ According to the 
Bureau of the Census, only twelve radiotelephone firms from a total of 
1,178 such firms, which operated during 1992, had 1,000 or more 
employees.\18\ Therefore, even if all twelve of these firms were 
cellular telephone companies, nearly all cellular carriers were small 
businesses under the SBA's definition. In addition, we note that there 
are 1,758 cellular licenses; however, a cellular licensee may own 
several licenses. In addition, according to the most recent 
Telecommunications Industry Revenue data, 808 carriers reported that 
they were engaged in the provision of either cellular service or PCS, 
which are placed together in the data.\19\ We do not have data 
specifying the number of these carriers that are not independently 
owned and operated or have more than 1,500 employees, and thus are 
unable at this time to estimate with greater precision the number of 
cellular service carriers that would qualify as small business concerns 
under the SBA's definition. Consequently, we estimate that there are 
808 or fewer small cellular service carriers that may be affected by 
these proposals, if adopted.
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    \17\ 13 CFR 121.201, SIC code 4812.
    \18\ 1992 Census, Series UC92-S-1, at Table 5, SIC code 4812.
    \19\ See Telecommunications Industry Revenues: 1999, Industry 
Analysis Division, Common Carrier Bureau (Sept. 2000).

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[[Page 31593]]

    28. Paging. The Commission has adopted, and the SBA has approved, a 
two-tier definition of small businesses in the context of auctioning 
licenses in the paging services. Under this definition, a small 
business is defined as either (1) an entity that, together with its 
affiliates and controlling principals, has average gross revenues for 
the three preceding years of not more than $3 million, or (2) an entity 
that, together with affiliates and controlling principals, has average 
gross revenues for the three preceding calendar years of not more than 
$15 million. The Commission has estimated that as of January 1998, 
there were more than 600 paging companies in the United States.\20\ We 
do not have data specifying the number of these carriers that are not 
independently owned and operated or meet the small business thresholds 
set forth above, or the number of these carriers that are regulated 
under part 22 of the Commission's rules, and thus are unable at this 
time to estimate with precision the number of affected paging carriers 
that would qualify as small business concerns under our definition. 
However, we estimate that the majority of existing paging providers 
qualify as small entities under our definition. Consequently, we 
estimate that there are up to approximately 600 currently licensed 
small paging carriers that may be affected by the rule changes proposed 
in the NPRM. In addition, high bids were placed at auction in March 
2000 for 985 new geographic area paging licenses, and an additional 
15,645 geographic area paging licenses are expected to be awarded 
following future auctions. In the March 2000 auction, high bids were 
placed on paging licenses by 57 entities that qualify as small 
businesses under the Commission's definition. Licenses have been 
granted to 56 of these entities, and the application of the other 
entity remains pending. Thus, in addition to existing licensees, should 
the Commission adopt the rule changes proposed in the NPRM either 57 or 
58 license winners in the recent auction would be affected small 
entities, and up to 15,645 winners of paging licenses in future 
auctions would be affected small entities.
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    \20\ Implementation of Section 6002(b) of the Omnibus Budget 
Reconciliation Act of 1993, Third Report, 13 FCC Rcd 19746, 19792 
(1998).
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    29. Air-Ground Radiotelephone Service. The Commission has not 
adopted a definition of small business specific to the Air-Ground 
radiotelephone service.\21\ Accordingly, we use the SBA definition 
applicable to radiotelephone companies, i.e., an entity employing no 
more than 1,500 persons. There are approximately 100 licensees in the 
Air-Ground radiotelephone service, and the Commission estimates that 
almost all of them qualify as small entities under the SBA definition.
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    \21\ Air-ground radiotelephone service is defined in Sec. 22.99 
of the Commission's rules, 47 CFR 22.99.
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    30. Offshore Radiotelephone Service. This service operates on 
several ultra high frequency (UHF) TV broadcast channels that are not 
used for TV broadcasting in the coastal area of the states bordering 
the Gulf of Mexico. At present, there are approximately 55 licensees in 
this service. The Commission has not adopted a definition of small 
business specific to the Offshore Radiotelephone Service. Accordingly, 
we use the SBA definition applicable to radiotelephone companies, i.e., 
an entity employing no more than 1,500 persons. The Commission is 
unable at this time to estimate the number of licensees that would 
qualify as small entities under the SBA definition for radiotelephone 
communications. The Commission assumes, for purposes of this IRFA, that 
all of the 55 licensees are small entities, as that term is defined by 
the SBA.
    31. Rural Radiotelephone Service. The Commission has not adopted a 
definition of small entity specific to the Rural Radiotelephone 
Service.\22\ A significant subset of the Rural Radiotelephone Service 
is the Basic Exchange Telephone Radio Systems (BETRS).\23\ We therefore 
use the SBA definition applicable to radiotelephone companies; i.e., an 
entity employing no more than 1,500 persons. There are approximately 
1000 licensees in the Rural Radiotelephone Service, and the Commission 
estimates that almost all of them qualify as small entities under the 
SBA definition.
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    \22\ Rural Radiotelephone Service is defined in Sec. 22.99 of 
the Commission's rules, 47 CFR 22.99.
    \23\ BETRS is defined in Secs. 22.757 and 22.729 of the 
Commission's rules, 47 CFR 22.757 and 22.729.
---------------------------------------------------------------------------

    32. Cellular Equipment Manufacturers. Some of the proposed actions 
in the NPRM will also affect manufacturers of cellular equipment. The 
Commission does not know how many cellular equipment manufacturers are 
in the current market. The 1994 County Business Patterns Report of the 
Bureau of the Census estimates that there are 920 companies that make 
communications subscriber equipment. This category includes not only 
cellular equipment manufacturers, but television and AM/FM radio 
manufacturers as well. Thus, the number of cellular equipment 
manufacturers is considerably lower than 920. Under SBA regulations, a 
``communications equipment manufacturer,'' which includes not only U.S. 
cellular equipment manufacturers but also firms that manufacture radio 
and television broadcasting and other communications equipment, must 
have a total of 750 or fewer employees in order to qualify as a small 
business concern.\24\ Census Bureau data from 1992 indicate that at 
that time there were an estimated 858 such U.S. manufacturers and that 
778 (91%) of these firms had 750 or fewer employees and would therefore 
be classified as small entities.\25\ Using our current estimate of 
cellular equipment manufacturers and the previous percentage estimate 
of small entities, we estimate that our current action may affect 
approximately 837 small cellular equipment manufacturers.
---------------------------------------------------------------------------

    \24\ 13 CFR 121.201, Standard Industrial Classification (SIC) 
code 3663.
    \25\ U.S. Dept. of Commerce, 1992 Census of Transportation, 
Communications and Utilities (issued May 1995), SIC code 3663 
(estimate created by the Census Bureau under contract to the Office 
of Advocacy, SBA).
---------------------------------------------------------------------------

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

    34. This NPRM neither proposes nor anticipates any additional 
reporting, recordkeeping or other compliance measures.

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

    35. 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 (among others): (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.\26\
---------------------------------------------------------------------------

    \26\ See 5 U.S.C. 603.
---------------------------------------------------------------------------

    36. As stated earlier, several of the Commission's technical and 
anti-trafficking cellular rules may be outdated. Therefore, modifying 
or eliminating these rules should decrease the costs associated with 
regulatory compliance for cellular service providers, provide 
additional flexibility in manufacturing cellular equipment, and also 
enhance the market demand for

[[Page 31594]]

some products. Also, amending or deleting the incidental services rules 
may allow licensees in the part 22 services greater flexibility in the 
types of services they offer. In the NPRM, the Commission has set forth 
various options it is considering for each rule, from modifying rules 
to eliminating them altogether. As discussed in the NPRM, the effect of 
any rule change on the regulatory burden of both licensees and 
equipment manufacturers will be a significant criterion in determining 
appropriate Commission action.
    37. We note that the entire intent underlying our actions here is 
to lessen the levels of regulation, consistent with our mandate for 
undertaking biennial reviews. We have therefore described, supra, 
various alternatives to lessen the regulatory burden on carriers and 
equipment manufacturers, including small entities. We seek comment on 
any additional appropriate alternatives.

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

    38. None.

VII. Ordering Clauses

    39. Authority for the issuance of this NPRM is contained in 
Sections 154, 222, 303, 309 and 332 of the Communications Act of 1934, 
as amended, 47 U.S.C. 154, 222, 303, 309 and 332.
    40. The Commission's Consumer Information Bureau, Reference 
Information Center, Shall Send a copy of this NPRM, including the 
Initial Regulatory Flexibility Analysis, to the Chief Counsel for 
Advocacy of the Small Business Administration.

List of Subjects

47 CFR Part 22

    Communications common carriers, Communications equipment, Radio, 
Reporting and recordkeeping requirements, Rural areas.

47 CFR Part 24

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

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Proposed Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend title 47, part 22 of the 
Code of Federal Regulations, as follows:

PART 22--PUBLIC MOBILE SERVICES

    1. The authority citation for part 22 continues to read as follows:

    Authority: 47 U.S.C. 154, 222, 303, 309 and 332.
    2. Section 22.323 is revised to read as follows:


Sec. 22.323  Incidental communication services.

    Carriers authorized to operate stations in the Public Mobile 
Services may use these stations to provide other telecommunications 
services incidental to the primary public mobile service(s) for which 
the authorizations were issued.
    3. Section 22.367 is amended by removing and reserving paragraph 
(a)(4) and by revising paragraph (d), to read as follows:


Sec. 22.367  Wave polarization.

* * * * *
    (a) * * *
    (4) [Reserved]
* * * * *
    (d) Any polarization. Base, mobile and auxiliary test transmitters 
in the Cellular Radiotelephone Service are not limited as to wave 
polarization. Public Mobile Service stations transmitting on channels 
higher than 960 MHz are not limited as to wave polarization.


Sec. 22.377  [Amended]

    4. Section 22.377 is amended by removing paragraph (c).
    5. Section 22.901 is revised to read as follows:


Sec. 22.901  Cellular service requirements and limitations.

    The licensee of each cellular system is responsible for ensuring 
that its cellular system operates in compliance with this section. Each 
cellular system must provide either mobile service, fixed service, or a 
combination of mobile and fixed service, subject to the requirements, 
limitations and exceptions in this section. Mobile service provided may 
be of any type, including two-way radiotelephone, dispatch, one-way or 
two-way paging, and personal communications services (as defined in 
part 24 of this chapter). Fixed service is considered to be primary 
service, as is mobile service. When both mobile and fixed service are 
provided, they are considered to be co-primary services. In providing 
cellular services, each cellular system may incorporate any technology 
that meets all applicable technical requirements in this part.
    6. Section 22.905 is revised to read as follows:


Sec. 22.905  Frequency bands.

    The following frequency bands are allocated for assignment to 
service providers in the Cellular Radiotelephone Service.
    (a) Channel Block A: 869-880 MHz paired with 824-835 MHz, and 890-
891.5 MHz paired with 845-846.5 MHz.
    (b) Channel Block B: 880-890 MHz paired with 835-845 MHz, and 
891.5-894 MHz paired with 846.5-849 MHz.
    7. Section 22.911 is amended by revising paragraphs (b)(1) and 
(b)(3), to read as follows:


Sec. 22.911  Cellular geographic service area.

* * * * *
    (b) * * *
    (1) The alternative CGSA determination must define the CGSA in 
terms of distances from the cell sites to the 32 dBV/m contour 
along the eight cardinal radials, with points in other azimuthal 
directions determined by the method given in paragraph (a)(6) of this 
section. The distances used for the cardinal radials must be 
representative of the coverage within the 45 deg. sectors, as depicted 
by the alternative CGSA determination.
* * * * *
    (3) The provision for alternative CGSA determinations was made in 
recognition that the formula in paragraph (a)(1) of this section is a 
general model that provides a reasonable approximation of coverage in 
most land areas, but may substantially under-predict or over-predict 
coverage in specific areas with unusual terrain roughness or features, 
and may be inapplicable for certain purposes, e.g., cells with a 
coverage radius of less than 8 kilometers (5 miles). In such cases, 
alternative methods that utilize more specific models are appropriate. 
Accordingly, the FCC does not consider use of the formula in paragraph 
(a)(1) of this section with parameters outside of the limits in 
paragraphs (a)(3), (a)(4) and (a)(5) of this section or with data for 
radials other than the cardinal radials to be a valid alternative 
method for determining the CGSA of a cellular system.
* * * * *


Sec. 22.915  [Removed]

    8. Section 22.915 is removed.
    9. Section 22.917 is revised to read as follows:


Sec. 22.917  Emission limitations for cellular equipment.

    The rules in this section govern the spectral characteristics of 
emissions in the Cellular Radiotelephone Service.
    (a) Out of band emissions. The power of any emission outside of the

[[Page 31595]]

authorized operating frequency ranges must be attenuated below the 
transmitting power (P) by a factor of at least 43 + 10 log(P) dB.
    (b) Measurement procedure. Compliance with the limitation in 
paragraph (a) of this section is based on the use of measurement 
instrumentation employing a resolution bandwidth of 1 MHz or more. 
However, for measurements within 1 MHz of the center of the main 
emission bandwidth, a resolution bandwidth of not less than 1% of the 
main emission bandwidth may be employed. For the purpose of this 
section, the main emission bandwidth is the continuous width of the 
signal outside of which all emissions are attenuated by at least 26 dB 
below the transmitting power. Either peak or average measurements may 
be used, provided that both the emissions and the reference transmitter 
power are measured the same way. When measuring emissions, the 
transmitter must be set to operate as close to each of the upper and 
lower channel block edges as the design permits for normal operation.
    (c) Alternative out of band emission limit. Licensees in this 
service may establish an alternative out of band emission limit to be 
used at specified band edge(s) in specified geographical areas, in lieu 
of that set forth in this section, pursuant to a private contractual 
arrangement of all affected licensees and applicants. In this event, 
each party to such contract shall maintain a copy of the contract in 
their station files and disclose it to prospective assignees or 
transferees and, upon request, to the FCC.
    (d) Interference caused by out of band emissions. If any emission 
from a transmitter operating in this service results in interference to 
users of another radio service, the FCC may require a greater 
attenuation of that emission than specified in this section.


Sec. 22.919  [Removed]

    10. Section 22.919 is removed.
    11. Section 22.921 is revised to read as follows:


Sec. 22.921  911 call processing procedures; 911-only calling mode.

    Mobile telephones manufactured after February 13, 2000 that are 
capable of operating in the analog mode described in the standard 
publication ANSI TIA/EIA-553-A-99 ``Mobile Station--Base Station 
Compatibility Standard'' (published November 1, 1999--available for 
purchase from Global Engineering Documents, 15 Inverness East, 
Englewood, CO 80112), must incorporate a special procedure for 
processing 911 calls. Such procedure must recognize when a 911 call is 
made and, at such time, must override any programming in the mobile 
unit that determines the handling of a non-911 call and permit the call 
to be transmitted through the analog systems of other carriers. This 
special procedure must incorporate one or more of the 911 call system 
selection processes endorsed or approved by the FCC.
    1. Section 22.937 is revised to read as follows:


Sec. 22.937  Demonstration of financial qualifications in cellular 
renewal proceedings.

    Each applicant for a new cellular system whose application is 
competing with a cellular renewal application must demonstrate that it 
has, at the time the application is filed, either a firm financial 
commitment, an irrevocable letter of credit or a performance bond in 
the amount of its realistic and prudent estimated costs of construction 
and any other expenses to be incurred during the first year of 
operating its proposed system (the irrevocable letter of credit or 
performance bond must be from the type of financial institution 
described in paragraph (b) of this section), or available resources, as 
defined in paragraph (c) of this section, necessary to construct and 
operate its proposed cellular system for one year.
    (a) The firm financial commitment may be contingent on the 
applicant obtaining an authorization. The applicant must also list all 
of its realistic and prudent estimated costs of construction and any 
other expenses to be incurred during the first year of operating its 
proposed system.
    (b) The firm financial commitment required above shall be obtained 
from a state or federally chartered bank or savings and loan 
association, another recognized financial institution, or the financial 
arm of a capital equipment supplier; shall specify the terms of the 
loan or other form of credit arrangement, including the amount to be 
borrowed, the interest to be paid, the amount of the commitment fee and 
the fact that it has been paid, the terms of repayment and any 
collateral required; and shall contain a statement:
    (1) That the lender has examined the financial conditions of the 
applicant, including audited financial statements where applicable, and 
has determined that the applicant is creditworthy;
    (2) That the lender has examined the financial viability of the 
proposal for which the applicant intends to use the commitment;
    (3) That the lender is committed to providing a sum certain to the 
particular applicant;
    (4) That the lender's willingness to enter into the commitment is 
based solely on its relationship with the applicant; and,
    (5) That the commitment is not in any way guaranteed by an entity 
other than the applicant.
    (c) An applicant intending to rely on personal or internal 
resources must submit:
    (1) Audited financial statements certified within one year of the 
date of the cellular application, indicating the availability of 
sufficient net current assets to construct and operate the proposed 
cellular system for one year;
    (2) A balance sheet current within 60 days of the date of filing 
its application that clearly shows the continued availability of 
sufficient net current assets to construct and operate the proposed 
cellular system for one year; and,
    (3) A certification by the applicant or an officer of the applicant 
organization attesting to the validity of the unaudited balance sheet.
    (d) Applicants intending to rely upon financing obtained through a 
parent corporation must submit the information required by paragraph 
(c) of this section, as the information pertains to the parent 
corporation.
    (e) As an alternative to relying upon a firm financial commitment, 
an irrevocable letter of credit, or a performance bond from a financial 
institution as described in paragraph (b) of this section, an applicant 
may state that it has placed in an escrow account sufficient cash to 
meet its construction and first-year operating expenses. Such a 
statement must specify the amount of cash, the escrow account number 
and the financial institution where the escrow account is located.
    (f) Any competing application filed against the renewal application 
of an incumbent cellular system licensee that does not demonstrate, at 
the time it is initially filed, that the competing applicant has 
sufficient funds to construct and operate for one year its proposed 
cellular system will be dismissed.
    13. Sec. 22.941 is revised to read as follows:


Sec. 22.941  System identification numbers.

    System identification numbers (SIDs) are transmitted by cellular 
systems to cellular telephones in their areas. Reception of a SID so 
transmitted enables cellular telephones to establish whether they would 
be in a ``home'' or ``roamer'' status when receiving service

[[Page 31596]]

from the cellular system. The SID of a cellular system is also 
programmed into the cellular telephones that are subscribed to that 
system. A cellular telephone transmits the programmed SID (among other 
numbers) when seeking service from a cellular system, enabling that 
system to determine whether the telephone is one of its subscribers or 
a roamer; and if a roamer, what the home system of that cellular 
telephone is. SIDs are also used for various billing purposes.
    (a) Each cellular system must have at least one SID that is 
associated uniquely with it. Cellular system licensees must coordinate 
the usage of SIDs to ensure that this requirement is met.
    (b) Cellular systems may transmit only their SID(s) or the SID(s) 
of other cellular systems. A cellular system may transmit the SID(s) of 
another cellular system only if the licensee of that system concurs 
with such use of its SID.
    14. Sec. 22.943 is amended by revising it to read as follows:


Sec. 22.943  Limitations on transfer of control and assignment for 
authorizations issued as a result of a comparative renewal proceeding.

    Except as otherwise provided in this section, the FCC does not 
accept applications for consent to transfer of control or for 
assignment of the authorization of a cellular system that has been 
acquired by the current licensee for the first time as a result of a 
comparative renewal proceeding until the system has provided service to 
subscribers for at least three years.
    (a) The FCC may accept and grant applications for consent to 
transfer of control or for assignment of the authorization of a 
cellular system that is to be transferred as a part of a bona fide sale 
of an on-going business to which the cellular operation is incidental.
    (b) The FCC may accept and grant applications for consent to 
transfer of control or for assignment of the authorization of a 
cellular system that is to be transferred as a result of the death of 
the licensee.
    (c) The FCC may accept and grant applications for consent to 
transfer of control or for assignment of authorization if the transfer 
or assignment is pro forma and does not involve a change in ownership.


Sec. 22.945  [Removed]

    15. Section 22.945 is removed.
    16. Section 22.946 is amended by revising it to read as follows:


Sec. 22.946  Service commencement and construction periods for cellular 
systems.

    This section specifies the service commencement and construction 
requirements for cellular systems. Related rule provisions and 
notification requirements are contained in Sec. 1.946 of this chapter.
    (a) Commencement of service. Each new cellular system licensed in 
markets 91-306 must be partially constructed and begin providing 
service to subscribers within 18 months. All other cellular systems 
must be at least partially constructed and begin providing service to 
subscribers within 12 months, beginning on the date of grant of the 
initial authorization. The grant of any subsequent authorizations (such 
as for major modifications) do not extend this period. To satisfy this 
requirement, a cellular system must be interconnected with the public 
switched telephone network (PSTN) and must be providing service to 
mobile stations operated by its subscribers and roamers. A cellular 
system is considered to be providing service only if mobile stations 
can originate telephone calls to and receive telephone calls from 
wireline telephones through the PSTN.

    Note to paragraph (a) of Sec. 22.946: The first cellular system 
authorized on each channel block in markets 1 through 90, inclusive, 
was allowed 36 months, rather than 12 months, to commence providing 
service. The first cellular system authorized on each channel block 
in markets other than markets 1 through 90, inclusive, was allowed 
18 months, rather than 12 months, to commence providing service. 
These longer startup periods that were afforded to first-authorized 
cellular systems have all elapsed.

    (b) Construction period for specific facilities. The construction 
period applicable to specific new or modified cellular facilities for 
which a separate authorization is granted is one year, beginning on the 
date the authorization is granted.

PART 24--PERSONAL COMMUNICATIONS SERVICES

    17. The authority citation for part 24 continues to read as 
follows:

    Authority: 47 U.S.C. 154, 301, 302, 303, 309 and 332.

    18. Section 24.238 is revised to read as follows:


Sec. 24.238  Emission limitations for Broadband PCS equipment.

    The rules in this section govern the spectral characteristics of 
emissions in the Broadband Personal Communications Service.
    (a) Out of band emissions. The power of any emission outside of the 
authorized operating frequency ranges must be attenuated below the 
transmitting power (P) by a factor of at least 43 + 10 log(P) dB.
    (b) Measurement procedure. Compliance with the limitation in 
paragraph (a) of this section is based on the use of measurement 
instrumentation employing a resolution bandwidth of 1 MHz or more. 
However, for measurements within 1 MHz of the center of the main 
emission bandwidth, a resolution bandwidth of not less than 1% of the 
main emission bandwidth may be employed. For the purpose of this 
section, the main emission bandwidth is the continuous width of the 
signal outside of which all emissions are attenuated by at least 26 dB 
below the transmitting power. Either peak or average measurements can 
be used, provided that both the emissions and the reference transmitter 
power are measured the same way. When measuring emissions, the 
transmitter must be set to operate as close to each of the upper and 
lower frequency block edges as the design permits for normal operation.
    (c) Alternative out of band emission limit. Licensees in this 
service may establish an alternative out of band emission limit to be 
used at specified band edge(s) in specified geographical areas, in lieu 
of that set forth in this section, pursuant to a private contractual 
arrangement of all affected licensees and applicants. In this event, 
each party to such contract shall maintain a copy of the contract in 
their station files and disclose it to prospective assignees or 
transferees and, upon request, to the FCC.
    (d) Interference caused by out of band emissions. If any emission 
from a transmitter operating in this service results in interference to 
users of another radio service, the FCC may require a greater 
attenuation of that emission than specified in this section.

[FR Doc. 01-14741 Filed 6-11-01; 8:45 am]
BILLING CODE 6712-01-U