[Federal Register Volume 70, Number 70 (Wednesday, April 13, 2005)]
[Rules and Regulations]
[Pages 19293-19312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-6948]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 22, and 90

[WT Docket Nos. 03-103, 05-42; FCC 04-287]


Air-Ground Telecommunications Services

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
(``Commission'') revises rules governing the four megahertz of 
dedicated spectrum in the 800 MHz commercial Air-Ground Radiotelephone 
Service band. The Commission adopts a flexible regulatory approach to 
determine the configuration of the band; adopts rules that enable 
interested parties to bid on spectrum licenses according to the band 
configuration that they believe will best meet their needs for the 
provision of air-ground services; makes available nationwide air-ground 
licenses in three configurations: band plan 1, comprised of two 
overlapping, shared, cross-polarized 3 MHz licenses (licenses A and B, 
respectively), band plan 2, comprised of an exclusive 3 MHz license and 
an exclusive 1 MHz license (licenses C and D, respectively), and band 
plan 3, comprised of an exclusive 1 MHz license and an exclusive 3 MHz 
license (licenses E and F, respectively), with the blocks at opposite 
ends of the band from the second configuration; and finally, the 
Commission revises and eliminates certain Public Mobile Services (PMS) 
rules that are no longer warranted as a result of technological change, 
increased competition in Commercial Mobile Radio Services (CMRS), 
supervening changes to related Commission rules, or a combination of 
these factors.

DATES: Effective May 13, 2005.

FOR FURTHER INFORMATION CONTACT: Richard Arsenault, Chief Counsel, 
Mobility Division, Wireless Telecommunications Bureau, at 202-418-0920 
or via e-mail at [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order portion (Report and Order) of the Commission's Report and 
Order and Notice of Proposed Rulemaking, FCC 04-287, in WT Docket Nos. 
03-103 and 05-42, adopted December 15, 2004, and released February 22, 
2005. Contemporaneous with this document, the Commission publishes a 
Notice of Proposed Rulemaking (Notice) (summarized elsewhere in this 
publication). The full text of this document is available for public 
inspection and copying during regular business hours at the FCC 
Reference Information Center, 445 12th St., SW., Room CY-A257, 
Washington, DC 20554. The complete text may be purchased from the 
Commission's duplicating contractor: Best Copy & Printing, Inc., 445 
12th Street, SW., Room CY-B402, Washington, DC 20554, telephone 800-
378-3160, facsimile 202-488-5563, or via e-mail at [email protected]. The 
full text may also be downloaded at: http://www.fcc.gov. Alternative 
formats are available to persons with disabilities by contacting Brian 
Millin at (202) 418-7426 or TTY (202) 418-7365 or at 
[email protected].

Synopsis of the Report and Order

A. 800 MHz Air-Ground Radiotelephone Service

    1. The Commission initiated this proceeding, inter alia, to 
reexamine the 800 MHz Air-Ground Radiotelephone Service band plan and 
service rules. Although the Commission initially licensed six 800 MHz 
air-ground nationwide licensees, only one licensee (Verizon Airfone) 
continues to provide service in the band, and our current technical 
rules allow it to provide only a limited range of narrowband voice and 
data services. This circumstance led us to question in the Notice of 
Proposed Rulemaking in this proceeding, 68 FR 44003, July 25, 2003, 
whether our existing rules were impeding the provision of 
telecommunications services desired by the public onboard aircraft. 
Nearly all parties commenting on these issues agree that our existing 
band plan and rules have hindered the efficient, competitive provision 
of air-ground services desired by the public. Based on our review of 
the record in this proceeding, we find that the public interest will be 
served by adopting flexible rules that will enable interested parties 
to bid on licenses in three possible band configurations. Each of the 
three band configurations includes at least one spectrum block that 
will permit the provision of high-speed telecommunications services to 
the public onboard aircraft.
    2. In reexamining the current band plan and service rules, we must 
address both competitive issues (i.e., how many competitors can the 
spectrum and the market support) and technical

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considerations (i.e., how much spectrum is necessary to efficiently and 
effectively support a range of air-ground service offerings, including 
voice and broadband applications, and the technical parameters to 
minimize the potential for air-ground systems to cause interference). 
We resolve these interrelated issues by adopting flexible rules to 
determine the best technological configuration of the band and the 
number of competitors for air-ground communications over multiple 
platforms (i.e., terrestrial and satellite). We find that 
reconfiguration of the 800 MHz air-ground band will facilitate 
competition with satellite-based offerings in the provision of high-
speed air-ground services to commercial and other aircraft. We also 
note that other spectrum is available for the provision of air-ground 
communications services. Based on our review of the record developed in 
this proceeding and for the reasons stated below, we conclude that a 
flexible licensing approach coupled with flexible technical and 
operational rules will promote the highest valued use of the 800 MHz 
air-ground spectrum for the provision of air-ground services that 
better meet the needs of the public.
1. Background
    3. In 1990, the Commission allocated four megahertz of spectrum for 
commercial Air-Ground Radiotelephone Service, authorizing operation at 
849-851 MHz (ground stations) and 894-896 MHz (airborne mobile 
stations). Each band was divided into ten paired channel blocks, which 
are allotted to specific geographic locations (essentially a national 
grid). Each channel block contains 29 narrowband (6 kHz) communications 
channels and 6 very narrowband (3.2 kHz) control channels. Under the 
current service rules, each licensee has an exclusive control channel, 
shares all the communication channels with the other licensees in the 
band, and must provide nationwide service. To promote interoperable 
communications and to manage interference, some of the ground station 
locations in North America and channel block assignments have been 
predetermined consistent with bilateral agreements with Mexico and with 
Canada. The number of communications channels limits the number of 
voice calls that can be simultaneously handled in a particular area, 
and the narrow bandwidth of these channels limits a service provider to 
voice and low-speed data services.
    4. The current 800 MHz Air-Ground Radiotelephone Service rules 
contemplate six competing licensees providing voice and low-speed data 
services. Six entities were originally licensed under these rules, 
which required all systems to conform to detailed technical 
specifications to enable shared use of the air-ground channels. Only 
three of the six licensees built systems and provided service, and two 
of those failed for business reasons. Only Verizon Airfone remains as 
an incumbent in the band. The prescriptive command-and-control nature 
of the current air-ground service rules, the regulatory requirement to 
share only four megahertz of spectrum among up to six licensees, and 
the limited data capacity of the narrow bandwidth (6 kHz) 
communications (slow dial-up modem speed) preclude the provision of 
broadband services to the public onboard aircraft.
2. Market for Air-Ground Wireless Communications Services
    5. There is substantial and rapidly growing consumer, airline, and 
service provider interest in access to high-speed Internet and other 
wireless services onboard aircraft. Market research suggests that many 
frequent flyers are willing to pay for high-speed access to the 
Internet and their corporate network.
3. Reconfiguration of the 800 MHz Air-Ground Radiotelephone Service 
Band
a. Available Air-Ground Band Plans
    6. We have reviewed the extensive record in this proceeding and 
conclude that the public interest will be served by adopting a flexible 
framework that will enable interested parties to bid on spectrum 
licenses according to the band configuration that they believe will 
best meet their needs for the provision of air-ground services. 
Interested parties may bid on spectrum licenses in any of the following 
three band plans, including two overlapping, shared, cross-polarized 
spectrum licenses (band plan 1) as advocated by AirCell, Inc. and the 
Boeing Company and exclusive spectrum licenses (band plans 2 and 3) as 
proposed by Space Data Corporation and Verizon Airfone. Licenses will 
have a ten-year term.
    Band plan 1--two overlapping, shared, cross-polarized 3 MHz 
licenses (licenses A and B, respectively).
    Band plan 2--an exclusive 3 MHz license and an exclusive 1 MHz 
license (licenses C and D, respectively).
    Band plan 3--an exclusive 1 MHz license and an exclusive 3 MHz 
license (licenses E and F, respectively), with the blocks at opposite 
ends of the band from the second configuration.
    7. The Commission will award licenses to winning bidders for the 
licenses comprising the band plan that receives the highest aggregate 
gross bid, subject to long-form license application review. In order to 
further competition and ensure maximum use of this frequency band for 
air-ground services, no party will be eligible to hold more than one of 
the spectrum licenses being made available.
    8. We believe this flexible approach to configuration of the band 
will promote our goal in this proceeding of facilitating the highest 
valued use of this scarce spectrum resource, resulting in the provision 
of wireless communications services that better meet the needs of the 
traveling public onboard aircraft. We also further our strategic 
objective to encourage the growth and rapid deployment of innovative 
and efficient communications technologies and services by adopting 
rules that will permit licensees to deploy any current or future 
technology with an occupied bandwidth that fits within its assigned 
spectrum and to provide any kind of air-ground service to any type of 
aircraft. As explained below, we also provide a transition period for 
the incumbent system currently operated by Verizon Airfone.
    9. Future licensees in the 800 MHz air-ground band, as well as 
other interested parties, will have the opportunity to engage in 
spectrum leasing under our rules. Future licensees will also be 
permitted to engage in partitioning and/or disaggregation of their 
licenses. These regulatory opportunities are intended to provide the 
air-ground marketplace greater flexibility to respond to consumer 
demand.
    10. Below, we address the location of ground stations, the 
provision of deck-to-deck service (i.e., service from takeoff to 
landing), competitive considerations, and the provision of services in 
the air-ground band.
(i) Location of Ground Stations
    11. Band plans 2 and 3 provide for exclusive spectrum licensing and 
will afford new licensees significant flexibility to configure and 
modify their systems to address current and future market conditions. 
For example, licensees will be able to initially configure their 
systems to best meet the needs of their customers, and may flexibly 
reconfigure or add ground stations to respond to future demand for air-
ground services. An exclusive licensee also could deploy new 
technologies in response to changing market conditions--without having 
to coordinate its choice of technology with another licensee in the 
band. If the band

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is comprised of two overlapping 3 MHz licenses (band plan 1), the new 
licensees will be required to jointly file a spectrum sharing and site 
selection plan with the Wireless Telecommunications Bureau within six 
months of the initial grant of their spectrum licenses and will be 
required to notify the Bureau of any changes to the plan. The Wireless 
Telecommunications Bureau will issue a public notice prior to the 
Commission's auction of new 800 MHz air-ground spectrum licenses in 
which it will specify the filing requirements for the plan. This 
approach would provide parties with overlapping spectrum licenses 
flexibility to configure their systems without having to adhere to 
minimum spacing requirements or site locations dictated by the 
Commission.
(ii) Provision of Deck-to-Deck Service
    12. The record reflects that parties desire deck-to-deck service 
(i.e., service from terminal to terminal). We note that air-ground 
communications services are currently provided to Federal, State, and 
local agencies, including the FBI, the U.S. Department of Energy, and 
the U.S. Customs Service, and that the air-ground spectrum can be used 
to support aircraft management, other public safety services, and 
homeland security communications. In view of the foregoing and in light 
of our statutory mandate to promote the safety of life and property, we 
have selected three band plans that would enable licensees to provide 
deck-to-deck service.
    13. An exclusive licensing approach (band plans 2 and 3) would 
facilitate the provision of service continuously because ground 
stations can be located without inter-system coordination and would not 
have to be limited in power or sector orientation by the presence of an 
overlapping licensee. If a spectrum sharing approach (band plan 1) is 
selected by the auction winners, the record indicates that the parties 
will have to agree on power limits and sharing rules to facilitate the 
full provision of deck-to-deck service.
(iii) Competitive Considerations
    14. The flexible band configuration approach that we adopt today 
will enable interested parties to bid on overlapping spectrum licenses 
(band plan 1) in the event that they believe spectrum sharing will best 
meet their needs for the provision of air-ground services. Under this 
approach, the individual licensees--rather than the Commission--would 
determine the criteria for ground station locations and other technical 
requirements necessary to facilitate the provision of broadband 
services on an overlapped basis. Moreover, in lieu of codifying their 
sharing plan into the Commission's rules, any sharing plan that the 
winning bidders develop between themselves can be modified at any time 
without their having to seek a change in the rules. If band plan 1 is 
implemented, we expect the parties to engage in good faith negotiations 
in developing and implementing their spectrum sharing plan. If the two 
licensees cannot agree on a spectrum sharing plan or if a dispute 
arises under their initial or amended agreement, we would encourage 
them to use binding arbitration or other alternative dispute resolution 
procedures. Alternatively, either party may request that the Commission 
resolve major disputes by filing, for example, a petition for 
declaratory ruling.
    15. In developing the available band plan options, we have 
considered the potential harms and benefits that may accrue from the 
possibility of a single provider in this band versus opportunities for 
multiple service providers. We have also weighed the possible harms and 
benefits in the context of our goal in this proceeding of facilitating 
the highest valued use of this spectrum, resulting in the provision of 
wireless telecommunications services onboard aircraft that better meet 
the needs of the traveling public. We have considered not only the 
existence of emerging satellite-based competition but also the 
availability of other spectrum for the provision of air-ground service. 
In addition, we have taken into account the fact that our new air-
ground band plan and rules will provide an adequate amount of spectrum 
for the provision of new high-speed wireless services using the 800 MHz 
air-ground spectrum that cannot be provided under our current rules, 
and we anticipate that any future provider will take advantage of the 
new rules to provide services that will compete more directly with 
broadband air-ground providers operating from different platforms. 
Therefore, we find that the air-ground band plan and the flexible 
service rules that we adopt today are likely to enhance intermodal air-
ground competition even if ultimately only one entity operates in the 
800 MHz air-ground band.
    16. Nevertheless, in light of the very limited amount of spectrum 
(four megahertz) available in the 800 MHz air-ground band, we conclude 
that the public interest would be served by ensuring access to this 
spectrum by more than one entrant by prohibiting any single party from 
controlling more than three megahertz of spectrum in the band. Although 
other spectrum and platforms will be available for the provision of 
domestic air-ground service, the 800 MHz air-ground band constitutes 
the only four megahertz of spectrum dedicated specifically to the 
commercial air-ground service in the United States. Thus, there is 
currently no guarantee that any spectrum other than the 800 MHz air-
ground band and the spectrum used by satellite services will in fact be 
used for commercial air-ground service. We accordingly conclude that it 
is in the public interest to promote competition by ensuring that at 
least two parties will have an opportunity to provide service in the 
800 MHz air-ground band. Other providers will be able to access the 
spectrum through secondary markets, resale or similar means. In 
addition, the record demonstrates that no more than three megahertz of 
spectrum is required to deliver high-speed air-ground services using 
today's broadband technologies. Permitting one party to control the 
entire four megahertz of spectrum comprising the band therefore could 
result in one megahertz of spectrum (25 percent of the band) lying 
fallow, which would undermine our goal of promoting the highest valued 
use of this spectrum. A 1 MHz spectrum block could support such 
applications as email service, Internet access, messaging services, 
avionic support, and homeland security services. Given the many 
potential uses of a 1 MHz spectrum block, restricting the access of any 
single party to three megahertz of the spectrum not only will increase 
the air-ground service choices available to consumers, but also will 
ensure the efficient use of this spectrum. We also believe that 
promoting competition in the band and with satellite-based service 
providers will serve the public interest by spurring technological 
innovation. In light of these findings, we conclude that it is in the 
public interest to have two licensees in this band.
    17. In view of the foregoing, we will prohibit any party from 
obtaining a controlling interest, either at auction or by a post-
auction transaction, in more than three megahertz of spectrum (either 
shared or exclusive) in the 800 MHz air-ground band. Each of the three 
band configurations contains two licenses and each includes at least 
one 3 MHz license. Accordingly, no party may have a controlling 
interest in more than one license in the band plan implemented as a 
result of the Commission's auction of new air-ground licenses. For 
purposes of this eligibility restriction, individuals and entities with 
either de jure or de facto control of a licensee in the band will be 
considered to have a controlling

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interest in the licensee. De jure control is evidenced by holdings of 
greater than 50 percent of the voting stock of a corporation, or in the 
case of a partnership, general partnership interests. De facto control 
is determined on a case-by-case basis.
    18. We also will apply the definitions of ``controlling interests'' 
and ``affiliate'' currently set forth in Sec. Sec.  1.2110(c)(2) and 
1.2110(c)(5) of the Commission's rules. These provisions have worked 
well to identify individuals and entities that have the ability to 
control applicants for Commission licenses and therefore are well-
suited to our goal here of ensuring that no party will hold a 
controlling interest in more than three megahertz of spectrum (shared 
or exclusive) in the 800 MHz air-ground band. We note that Sec.  
1.2110(c)(2) includes the requirement that ownership interests 
generally be calculated on a fully diluted basis, and also provides 
that any person who manages the operations of an applicant pursuant to 
a management agreement, or enters into a joint marketing agreement with 
an applicant, shall be considered to have a controlling interest in the 
applicant if such person, or its affiliate, has authority to make 
decisions or otherwise engage in practices or activities that 
determine, or significantly influence, the types of services offered, 
or the terms or prices of such services. We find that, together with 
the other provisions of Sec. Sec.  1.2110(c)(2) and 1.2110(c)(5), these 
provisions will ensure that no entity will hold a controlling interest 
in more than three megahertz of spectrum (shared or exclusive) in the 
800 MHz air-ground band.
    19. We note that, like other Part 22 licensees, 800 MHz Air-Ground 
Radiotelephone Service licensees are classified as commercial mobile 
radio service (CMRS) providers and thus are subject to common carrier 
regulation under Title II of the Communications Act (Act). While the 
Commission has previously decided to forbear from applying certain 
provisions of Title II to CMRS providers, it has determined that it 
would be inappropriate to exempt CMRS providers from the competitive 
safeguards embodied in Sec. Sec.  201 and 202 of the Act. Air-Ground 
licensees therefore are required to provide service upon reasonable 
request, and their ``charges, practices, classifications, and 
regulations for and in connection with'' service must be just and 
reasonable. Moreover, Air-Ground licensees may not make any unjust or 
unreasonable discrimination in charges, practices, classifications, 
regulations, facilities, or services for or in connection with a like 
communication service and may not afford any undue or unreasonable 
preference or advantage to any person or class of persons. Accordingly, 
if an air-ground licensee were to unreasonably discriminate in its 
service rates, terms, or conditions, it could be subject to enforcement 
action by the Commission as well as a complaint proceeding initiated 
pursuant to Sec.  208 of the Act.
(iv) Air-Ground Services
    20. A new licensee may provide any type of air-ground service 
(i.e., voice telephony, broadband Internet, data, etc.) to aircraft of 
any type, and serve any or all aviation markets (e.g., commercial, 
government, and general). A licensee must provide service to aircraft. 
We note that current bilateral agreements between the United States, 
Canada, and Mexico provide for coordinated use of air-ground 
frequencies over North American airspace and are based on a narrow 
bandwidth channel scheme, and therefore may need to be renegotiated to 
provide for more flexible use of this spectrum.
    21. At this time, we decide not to permit a licensee to provide 
ancillary land mobile or fixed services in the 800 MHz air-ground 
spectrum.
4. Technical Standards
    22. We are adopting the minimal set of technical rules for the new 
air-ground service necessary to implement the three alternative band 
plan configurations that will be subject to auction. Generally, these 
rules provide licensees flexibility to deploy any type of transmission 
technology, provided that the radio emissions produced fit within a 
licensee's assigned spectrum. The new technical rules limit only 
transmitting power and the power level of unwanted emissions. As a 
general matter, these new technical rules are crafted to allow 
sufficient power to provide robust air-ground services, while limiting 
the potential for harmful interference to services operating in 
adjacent spectrum.
    23. Interference to air-ground from adjacent services. Each of the 
two paired bands comprising the 800 MHz air-ground allocation is 
adjacent to and just above spectrum allocated to the cellular 
radiotelephone service. The 849-851 MHz uplink band is adjacent to and 
just below spectrum allocated to land mobile services including public 
safety, which will soon become all public safety pursuant to the 800 
MHz Order. The 894-896 MHz downlink band is adjacent to and just below 
spectrum allocated to land mobile services including 900 MHz SMR. These 
services are heavily used in many areas. Base stations in these 
adjacent services are authorized to utilize high power levels.
    24. The services adjacent to the 849-851 MHz band are subject to 
rules that limit their potential to cause interference to air-ground 
service. We do not, at this time, find a need to adopt additional or 
more stringent rules applicable to the adjacent service licensees to 
further limit interference potential to the air-ground service. We 
believe that, under the current rules, new air-ground systems should be 
able, through careful ground station site selection and technical 
coordination with the licensees in the adjacent services, to build out 
their systems. Potential licensees should plan on obtaining qualified 
engineering advice regarding system design and ground station site 
selection, taking fully into account the existing radio frequency 
environment at candidate sites.
    25. Interference to Cellular Block B. The air-ground ground station 
transmit band at 849-851 MHz is adjacent to the Cellular Radiotelephone 
Service Block B band, which is used for cellular base station 
receivers. We note that no harmful interference problems between the 
cellular service and the commercial air-ground service have been 
reported to the Commission during more than ten years of air-ground 
service operations, despite the fact that the air-ground mobile station 
and ground station transmit bands are reversed from the adjacent 
cellular bands. We believe that several factors may explain why there 
have been no reported interference problems. First, both services have 
out of band emissions (OOBE) limits to suppress undesired signals from 
adjacent allocations. Second, there are far fewer ground stations in an 
air-ground system than in a cellular system (e.g., the entire U.S. 
airspace can be covered at an altitude of 20,000 feet by fewer than 200 
ground stations). Third, an air-ground licensee must employ careful 
site selection practices for its ground stations, including an 
unobstructed view of the sky and consideration of the local RF 
environment (i.e., what other stations are nearby). Further, air-ground 
antennas also are typically up-tilted whereas cellular antennas are 
often down-tilted, adding some isolation between the two. The rule 
changes that we adopt to permit broadband air-ground services will not 
alter any of these factors and, consequently, we expect that these 
factors will be effective in avoiding inter-service interference under 
our new air-ground band plan.
    26. Furthermore, we do not believe that the use of wider bandwidth

[[Page 19297]]

technologies in the 800 MHz air-ground spectrum will result in 
increased interference between air-ground operations and cellular 
operations. Although spread spectrum emissions typically have broader 
out-of-band noise skirts, the level of this noise is subject to the 
Commission's OOBE rules. We also note that the broadband spread 
spectrum based technologies used in the cellular band and those that 
the parties have proposed for use in the air-ground band are resistant 
to small amounts of out-of-band noise. In summary, we find that 
applying our standard OOBE rules here is adequate to limit unwanted 
emissions between ground stations in the air-ground service and base 
stations in the cellular service. We note that our standard OOBE rules 
also provide that the Commission may require greater attenuation of 
unwanted emissions in the event it is necessary to prevent interference 
to other services.
    27. The airborne mobile transmit band (894-896 MHz) is adjacent on 
its lower side to the cellular telephone receivers of the Cellular B 
Block licensee. There have been no reported instances of harmful 
interference between airborne mobile stations and cellular telephones. 
This stems from the large distance separation between aircraft and 
cellular phones on the ground, and our decision today does not change 
this factor. We conclude that our OOBE limits and the distance 
separation make it likely that the mobile units in these two services 
will continue to operate in adjacent spectrum without harmful 
interference problems. Nevertheless, if an air-ground licensee elects 
to operate aircraft mobile transmitters on the ground or during 
approach and take-off, they may find it necessary in some cases to 
provide additional attenuation of OOBE falling into the spectrum below 
894 MHz, in order to avoid interference to cellular phones in use in 
the immediate vicinity of airports.
    28. Interference to Public Safety. The upper edge of the air-ground 
ground station transmit band at 849-851 MHz is adjacent to what are now 
mobile receivers for interleaved business, industrial and land 
transportation, SMR, and public safety radio channels, but which will 
soon become the National Public Safety Plan Advisory Committee (NPSPAC) 
public safety channels pursuant to our recent 800 MHz Order, 69 FR 
67823, November 22, 2004. Nextel asserts that OOBE from air-ground 
ground stations could produce a significant amount of noise energy in 
nearby public safety receivers. Although we have found that emissions 
from cellular base stations may have contributed to interference 
problems with public safety and critical infrastructure mobile 
receivers above 851 MHz, there is no history of similar interference 
being caused by the existing air-ground ground stations to mobile 
receivers. There are again several factors that we believe may explain 
why air-ground caused interference is rare, including the fact that 
there are so few air-ground ground stations, as compared to cellular 
base stations, and the deployment characteristics of ground stations 
(e.g., up tilted antennas). Further, we note that NPSPAC operations 
above 851 MHz will be protected by our OOBE limit rule, including the 
provision that allows the Commission to require greater attenuation if 
necessary to prevent interference.
    29. Nevertheless, we believe that it is prudent to adopt a rule 
providing that ground stations in the Air-Ground Radiotelephone Service 
that operate in the 849-851 MHz range will be subject to the same 
interference abatement obligation rules adopted for cellular services 
in the 800 MHz Order. The rule we are adopting is essentially the same 
as that adopted for cellular in the 800 MHz Order. We will not require 
air-ground licensees to participate in the establishment of the 
electronic notification process because we anticipate that this process 
will be in place by the time that new air-ground licenses are issued.
    30. Interference to 900 MHz SMR base receivers. The airborne mobile 
transmit band (894-896 MHz) is adjacent on its upper side to the base 
station receive band in the 900 MHz SMR service. Distance separation 
will normally serve to protect 900 MHz SMR base station receivers 
because airborne stations normally operate at altitudes well above 900 
MHz SMR base stations. Nextel, however, contends that there may be a 
problem where its 900 MHz SMR base stations are located near airport 
runways, and if there are several aircraft at low altitude nearby at 
the same time. This possibility appears to be atypical and we find that 
it would be best addressed on a case-by-case basis rather than by a 
broad-based rule. Air-ground licensees and 900 MHz SMR licensees should 
cooperate to resolve any interference problems of this type.
    31. Miscellaneous interference issues. We do not believe the record 
justifies adoption of more stringent OOBE limits for the Air-Ground 
Radiotelephone Service. Accordingly, we will apply our harmonized 
flexible OOBE limits rule, which currently applies to cellular and 
broadband PCS, to the 800 MHz Air-Ground Radiotelephone Service. We 
note that, in the event that band plan 2 or 3 is implemented, the 
exclusive licensees would be subject to the OOBE standards between 
their spectrum blocks, as well as outside the air-ground band.
    32. Miscellaneous technical rules. The existing air-ground rules 
have provided particular limits on transmitter frequency tolerance and 
specifications for automated operating procedures. We conclude it is 
unnecessary to retain such a detailed frequency tolerance rule. Under 
the legacy band configuration, numerous closely packed air-ground 
channels were shared by multiple licensees, so we required a frequency 
tolerance rule that tightly controlled frequency stability to minimize 
the possibility of adjacent channel interference. By contrast, our new 
rules establish wider spectrum blocks and we anticipate fewer 
communications channels. In addition, we expect that the advanced 
technologies likely to be used in this band will have to be inherently 
stable in order to work properly, and, in the Air-Ground Radiotelephone 
Service, possibly to compensate for Doppler shift as well. Thus, we 
find that we need only require in our rules that the frequency 
stability of equipment used be sufficient to ensure that, after 
accounting for Doppler frequency shifts, the occupied bandwidth of the 
fundamental emissions remains within the authorized frequency bands of 
operation. In the event that band plan 1 is implemented and licenses 
for spectrum sharing are issued, the licensees may choose to agree upon 
any number of miscellaneous technical standards that may be needed to 
facilitate shared spectrum operation and include them in the spectrum 
sharing plan that they would file with the Wireless Telecommunications 
Bureau.
5. Incumbent Station KNKG804
    33. Verizon Airfone Inc. is the sole incumbent currently operating 
in the 800 MHz air-ground band. In April 2004, the company filed an 
application for renewal of its authorization to operate in the band, 
Call Sign KNKG804. We grant Verizon Airfone Inc. a non-renewable 
license for a five-year term commencing on the effective date of this 
Report and Order.
a. Transition of Incumbent System
    34. In order to ensure that the air-ground spectrum can be used to 
provide broadband air-ground services to the public in the near future, 
it is imperative to clear the incumbent narrowband system from a 
minimum of three megahertz of spectrum as soon as reasonably 
practicable. We conclude

[[Page 19298]]

that, given the declining and relatively low usage level of Verizon 
Airfone's system, and because the original 800 MHz air-ground band plan 
was intended to accommodate six competing licensees, the existing 
system can be provided comparable spectrum in one megahertz of spectrum 
in the air ground band.
    35. Verizon Airfone's incumbent system must cease operations in the 
lower 1.5 MHz portion of each 2 MHz air-ground band within 24 months of 
the initial date of grant of any license, if band plan 1 or 2 is 
implemented; Verizon Airfone may relocate its incumbent operations to 
the upper 0.5 MHz portion of each 2 MHz band and may continue to 
operate under the renewal authorization until the end of the five-year 
license term. If band plan 3 is implemented, Verizon Airfone's 
incumbent system must cease operations in the upper 1.5 MHz portion of 
each 2 MHz air-ground band within 24 months of the initial date of 
grant of any new license; Verizon Airfone may relocate its incumbent 
operations to the lower 0.5 MHz portion of each 2 MHz band and may 
continue to operate under the renewal authorization until the end of 
the five-year license term. We note that this transition period is 
consistent with Verizon Airfone's request that we provide it a 
``limited transitional period'' for its narrowband system. In revising 
our current air-ground rules, we are eliminating all of the command and 
control technical rules, which enabled dynamic sharing of communication 
channels under the former licensing scheme. Verizon Airfone may 
reconfigure the narrowband channelization of its existing system in the 
upper 0.5 MHz portion of each 2 MHz band (or lower 0.5 MHz portion of 
each band if band plan 3 is implemented) any way it wants, including 
using control channel(s) of any authorized bandwidth less than 6 kHz 
(not limited to 3.2 kHz as they are now). We note that if Verizon 
Airfone acquires a new spectrum authorization as a result of 
competitive bidding, it could elect to continue its incumbent 
operations under such new authorization.
b. Reimbursement of Relocation Costs
    36. We conclude that it would not be inequitable for Verizon 
Airfone to bear costs associated with relocating its narrowband 
operations within the 24-month period set out above to accommodate a 
new entrant in the air-ground band. The original 800 MHz air-ground 
band plan was intended to accommodate six competing licensees in the 
air-ground band, and Verizon Airfone has never had a right to exclusive 
use of the band. The new license that we grant Verizon Airfone today, 
moreover, provides the company a substantial period--two years from the 
initial grant of any new air-ground license--to relocate its narrowband 
operations to one megahertz of spectrum in the band.
    37. We do not foresee harm to the flying public flowing from 
Verizon Airfone bearing any relocation expenses it may have. As noted 
above, demand for Verizon Airfone's service has markedly declined in 
recent years, and the company's system is approaching technological 
obsolescence. We note that a new air-ground licensee could seek to 
negotiate and compensate Verizon Airfone to relocate earlier than 
required by the terms of Verizon Airfone's new license; Verizon 
Airfone, however, will not be obligated to engage in such negotiations. 
On balance, we conclude that any burden that might be incurred by 
Verizon Airfone to relocate its operations under the conditions we are 
adopting should be minimal. Accordingly, we require Verizon Airfone to 
bear any costs for relocating its narrowband operations in the air-
ground band at the end of the 24-month transition period.
c. Renewal of Call Sign KNKG804
    38. We hereby grant Verizon Airfone Inc. a non-renewable license, 
Call Sign KNKG804, for a five-year term subject to the following 
conditions:
     If band plan 1 or 2 is implemented, Verizon Airfone must 
cease its existing narrowband operations in the lower 1.5 MHz portion 
of each 2 MHz air-ground band within 24 months of the initial date of 
grant of a new spectrum license.
     If band plan 1 or 2 is implemented, Verizon Airfone may 
relocate its incumbent operations to the upper 0.5 MHz portion of each 
2 MHz band (0.5 MHz at 850.500-851.000 MHz paired with 0.5 MHz at 
895.500-896.000 MHz).
     If band plan 3 is implemented, Verizon Airfone must cease 
its existing narrowband operations in the upper 1.5 MHz portion of each 
2 MHz air-ground band within 24 months of the initial date of grant of 
a new spectrum license.
     If band plan 3 is implemented, Verizon Airfone may 
relocate its incumbent operations to the lower 0.5 MHz portion of each 
2 MHz band (0.5 MHz at 849.000-849.500 MHz paired with 0.5 MHz at 
894.000-894.500 MHz).
     The existing Sec.  22.867 power limits for ground stations 
(100 Watts ERP) and airborne mobile stations (30 Watts ERP) will become 
license terms. We are amending Sec.  22.867 and it will apply to the 
new licensees only.
     The existing Sec.  22.861 out-of-band and spurious 
emission limits will become license terms. We are amending Sec.  22.861 
and it will apply to the new licensees only.
     The authorized emission bandwidth of any transmission from 
the existing system may not exceed 6 kHz. This license condition 
replaces Sec.  22.857(a)(2) because we are removing Sec.  22.857. This 
condition requires that the existing system remain a narrowband system.
    39. Verizon Airfone must coordinate any technical changes within 
885 kilometers (550 miles) of the U.S.-Canadian or U.S.-Mexican borders 
with the appropriate air-ground licensees in those countries prior to 
requesting appropriate governmental approval. Verizon Airfone may 
locate or relocate ground stations operating at any power level (not 
exceeding 100 Watts), subject only to international coordination. 
Verizon Airfone must maintain and provide to the FCC and the new 800 
MHz air-ground licensee(s) a current list of the locations and channels 
used at all ground stations, which will enable the licensee(s) to 
provide interference protection to the existing system's operations.
    40. During the period that the existing system continues to operate 
and provide service, the licensee of a new spectrum license must not 
cause harmful interference to it. Protection from interference requires 
that the signals of the new licensee(s) must not exceed the current 
adjacent channel emission limit, which is a ground station received 
power of -130 dBm in 6 kHz, assuming a 0 dBi vertically polarized 
antenna. This limit will provide full interference protection to the 
existing system.
6. Construction Requirements
    41. We find that a five-year substantial service construction 
requirement for any new spectrum license--other than the 1 MHz spectrum 
licenses D and E--will serve the public interest and is consistent with 
our statutory mandate to prevent stockpiling or warehousing by 
licensees, and to promote investment in and rapid deployment of new 
technologies and services. At the end of the five-year construction 
period, a licensee must provide substantial service to aircraft. We 
define substantial service as service that is sound, favorable, and 
substantially above a level of mediocre service that would barely 
warrant renewal. We establish two safe harbors that would satisfy this 
substantial service obligation. First, construction and operation of 20 
base stations, with at least one base station in each of the ten FAA 
regions, at the five-year

[[Page 19299]]

benchmark would constitute substantial service. Alternatively, the 
construction and operation of base stations capable of serving the 
airspace of at least 25 of the 50 busiest airports (as measured by 
annual passenger boardings) at the five-year benchmark would constitute 
substantial service.
    42. We do not establish a construction requirement for spectrum 
licenses D and E. If either of these licenses is acquired, the licensee 
would have to share spectrum with Verizon Airfone's incumbent system 
until the expiration of Verizon Airfone's non-renewable license term. 
Depending on system configuration, a licensee of spectrum block D or E 
might not find it technically desirable to operate an air-ground system 
while sharing spectrum with the incumbent system. Under these 
circumstances, a construction requirement could result in a licensee 
deploying a less than optimal system.

B. 400 MHz Air-Ground Radiotelephone Service

    43. The general aviation air-ground service operates in the 
454.675-454.975 and 459.675-459.975 MHz bands and involves the 
provision of telecommunications service to private aircraft such as 
small single engine craft and corporate jets. As explained by one of 
the commenters in this proceeding, the channels licensed in this 
service are used for emergency and other purposes. These channels are 
interconnected with the public switched telephone network. Pursuant to 
our biennial review of regulations in the Notice, we are revising and 
eliminating certain rules governing this service. In addition to the 
rules revised or eliminated as discussed below, we take this 
opportunity to update and reorganize the general aviation air-ground 
rules. In particular, we redesignate current Sec.  22.803 of the 
general rules as new Sec.  22.807 of the general aviation air-ground 
rules, and delete certain superfluous language therein that relates to 
the Rural Radiotelephone Service.
1. Form 409, Airborne Mobile Radio Telephone License Application
    44. In contrast to most part 22 services, Sec.  22.3(b)(1) requires 
an individual authorization to operate a general aviation airborne 
mobile station-an end user unit-in the Air-Ground Radiotelephone 
Service. This requirement is also reflected in Sec.  1.903(c) of our 
rules. Individuals must file FCC Form 409 (Airborne Mobile Radio 
Telephone License Application) to apply for authority to operate an 
airborne station or to modify or renew an existing license.
    45. We do not believe that the continued licensing of individual 
airborne mobile stations is warranted. At present, and likely for the 
foreseeable future, members of the public desiring service using the 
current Air-Ground Radiotelephone Automated Service (AGRAS) system must 
first purchase and install an AGRAS-compatible mobile telephone aboard 
their aircraft. Such mobile units are considerably more expensive and 
not as readily available as mobile telephones typically used with land-
based public mobile systems. Coupled with the fact that the number of 
general aviation users is relatively small, the probability of 
unauthorized users is minimal.
    46. More importantly, a potential air-ground subscriber must first 
register with the billing service utilized by the various air-ground 
licensees to obtain an aircraft telephone number in order to receive 
service. Therefore, the licensee's own billing service would know the 
number and identification of legitimate users of the air-ground AGRAS 
system. Presumably, if an un-registered user attempted to place calls 
over the AGRAS system, service would be denied.
    47. In addition, the Commission has received few complaints 
regarding these stations. Air-Ground equipment is used to communicate 
with ground facilities that are otherwise licensed by the Commission. 
Moreover, we believe that the requirement to file Form 409 imposes an 
unnecessary regulatory burden on end users, because it involves 
preparation of a form as well as payment of a $50 fee for each 
subscriber unit.
    48. Therefore, in keeping with the Commission's policy of 
simplifying, where appropriate, its licensing procedures and easing the 
administrative burden on licensees and other users of Wireless Radio 
Services, we eliminate, by revising Sec. Sec.  1.903(c) and 22.3(b), 
the requirement that an authorization be obtained to operate general 
aviation airborne mobile stations in the Air-Ground Radiotelephone 
Service. We also eliminate FCC Form 409 and delete references to that 
form in Sec. Sec.  1.1102 and 1.2003 of our rules.
2. Idle Tone
    49. Section 22.811 provides that, when a ground station transmitter 
authorized to transmit on any Air-Ground Radiotelephone Service channel 
listed in Sec.  22.805 (for general aviation air-ground service) is 
available for service but idle, it must continuously transmit a 
modulated signal on that channel with a power between 10 and 20 dB 
lower than the normal transmitting power. We continue to believe that 
the deletion of Sec.  22.811 from our rules is warranted. We take this 
opportunity to point out that the removal of this rule in no way 
prohibits carriers from employing the idle control tone. To the 
contrary, the action we take today is permissive. To the extent that 
idle tone transmissions are deemed valuable by system operators, they 
are free to continue to use it. In light of today's automated system, 
however, we do not believe that mandating its continued use is 
warranted.
3. Construction Period for General Aviation Ground Stations
    50. Section 22.815 provides that ``[t]he construction period (see 
Sec.  22.142) for general aviation ground stations is 12 months.'' We 
correct the reference in Sec.  22.815 to specify the actual rule 
section, Sec.  1.946.
4. AGRAS
    51. Section 22.819 provides that, after January 1, 1996, stations 
transmitting on the general aviation air-ground service channels must 
operate in compliance with the requirements set forth in the document, 
``Technical Reference, Air-ground Radiotelephone Automated Service 
(AGRAS), System Operation and Equipment Characteristics,'' dated April 
12, 1985. The industry is currently developing a new operating 
technology that may be superior to AGRAS.
    52. We delete Sec.  22.819. Our deletion of the rule does not mean 
that the AGRAS protocols are prohibited. To the contrary, technological 
advancements in this area may continue to utilize AGRAS protocols if 
developers believe it would be appropriate. We are unwilling at this 
time to mandate the use of a particular technology when the market is 
more suited to make these decisions. We also believe that it is 
unlikely that the industry would simply forsake the current users of 
these systems.

C. Revision of Part 22 Non-Cellular Rules

1. Scope and Authority
a. Authorization Required, General Eligibility, and Definitions
    53. Section 22.3(b) provides that, except for certain stations in 
the Rural Radiotelephone Service and the Air-Ground Radiotelephone 
Service, the operation by subscribers of mobile or fixed stations in 
the Public Mobile Services is covered by the authorization held by the 
common carrier providing service to them. Part 22 also contains other 
rules that use the term ``common carrier.'' Section 22.7 states that,

[[Page 19300]]

``except as otherwise provided in this part, existing and proposed 
common carriers are eligible to hold authorizations in the Public 
Mobile Services.'' We also pointed out that several of the definitions 
contained in Sec.  22.99 include references to the term ``common 
carrier.'' Finally, we observed that the distinctions previously drawn 
between a radio common carrier and a wireline common carrier under the 
part 22 rules became obsolete in 1984.
    54. We revise Sec. Sec.  22.3(b), 22.7, and 22.99 by replacing the 
term ``common carrier'' with the term ``licensee,'' and thus deleting 
the requirement that licensees in part 22 services be common carriers. 
We also revise Sec.  22.1(b) to delete the reference to ``domestic 
common carrier,'' and Sec.  22.401 to delete the words ``Communications 
common carriers'' and replace with the words ``Eligible entities (see 
Sec.  22.7).'' Section 22.351, regarding channel assignments, should be 
similarly amended. Finally, we delete the definitions for Radio Common 
Carrier and Wireline Common Carrier, as these terms are no longer used 
in part 22, and correct references to the term ``Air-ground 
Radiotelephone Service'' contained in several definitions in Sec.  
22.99 to read ``Air-Ground Radiotelephone Service.''
2. Licensing Requirements and Procedures
a. Construction Prior to Grant of Application
    55. Section 22.143(d)(4) of our rules provides that, for any pre-
grant construction or alteration that would exceed the requirements of 
Sec.  17.7, the licensee must notify the FAA and file a request for 
antenna height clearance and obstruction and marking specifications 
(FCC Form 854) with the FCC, PRB, Support Services Branch, Gettysburg, 
PA 17325. The correct filing location for FCC Form 854 is WTB, Spectrum 
Management Resources and Technologies Division, 1270 Fairfield Road, 
Gettysburg, PA 17325. We revise FCC Form 854 accordingly, and we amend 
Sec.  22.143(d)(4) of our rules to include this updated address.
b. Computation of Distance
    56. We recodify Sec.  22.157 as new Sec.  1.958 in part 1, subpart 
F. This will make the Sec.  22.157 distance calculation method 
applicable to all Wireless Radio Services described in parts 1 (except 
parts 21 and 101 as explained below), 20, 22, 24, 27, 80, 87, 90, 95, 
and 97, and supersede any conflicting regulations in these parts. We 
note that software used by the Commission to process applications under 
parts 21 (Domestic Public Fixed Radio Services) and 101 (Fixed 
Microwave Services) is programmed to round the result of a distance 
calculation to the nearest tenth of a kilometer. Accordingly, we 
include language in new Sec.  1.958 to indicate that distance 
calculations for applications under these parts must be rounded to the 
nearest tenth of a kilometer.
c. Computation of Terrain Elevation
    57. We recodify Sec.  22.159 as new Sec.  1.959 in part 1, subpart 
F. Part 90 services in the 470-512 MHz band, due to their proximity to 
TV operations, will continue to be governed by Sec.  90.309(a)(4). 
Thus, all wireless services under parts 1, 20, 22, 24, 27, 80, 87, 90 
(except the 470-512 MHz band), 95, 97 and 101 will be subject to the 
same computation methodology.
d. ASSB
    58. Section 22.161 sets forth application requirements for base 
stations in the Paging and Radiotelephone Service, Rural Radiotelephone 
Service, and Offshore Radiotelephone Service where the applicant 
proposes to employ amplitude compandored single sideband modulation 
(ASSB). We delete Sec.  22.161. This rule section is obsolete in light 
of Sec.  22.357, which permits part 22 licensees to use any emission 
type that complies with applicable emission limits.
3. Operational and Technical Requirements
a. Channel Assignment Policy
    59. Section 22.351 sets forth the general policy for the assignment 
of PMS channels. The third sentence of this section uses the term 
``common carrier.'' We amend Sec.  22.351 to replace the term ``common 
carrier'' with the term ``licensee.''
b. Interference Protection
    60. Section 22.352 provides, in pertinent part, that PMS licensees 
shall be considered non-interfering if they operate in accordance with 
FCC rules that provide technical channel assignment criteria for the 
radio service or channels involved, all other applicable FCC rules, and 
the terms and conditions of their authorizations. We modify the 
relevant portion of Sec.  22.352 to read ``Public Mobile Service 
stations operating in accordance with applicable FCC rules and the 
terms and conditions of their authorizations are normally considered to 
be non-interfering.'' The streamlined wording we adopt more accurately 
reflects how the Commission currently addresses interference issues, as 
we make clear that operation consistent with Commission rules and the 
applicable authorization--whether on a site-by-site basis or on a 
geographic area basis--creates a presumption of non-interfering 
operation.
c. Emission Types and Emission Masks
    61. An emission mask is defined as ``[t]he design limits imposed, 
as a condition or certification, on the mean power of emissions as a 
function of frequency both within the authorized bandwidth and in the 
adjacent spectrum.'' Section 22.357 provides that any authorized PMS 
station may use any type of emission provided that it complies with the 
appropriate emission mask. Section 22.359 is the general emission mask 
rule. Section 22.861 is the emission limitations and mask rule for 
commercial aviation air-ground systems. At the time the Commission 
adopted the part 22 rules, it generally used the emission mask approach 
to regulate in-band energy distribution. Recently, however, the 
Commission has been decreasing its reliance on the use of emission 
masks as a means to limit interference and, instead, increased its 
reliance on the use of out-of-band emission (OOBE) limits. The salient 
difference between emission masks and OOBE limits is that OOBE limits 
do not limit emission levels within a particular frequency band. 
Rather, they are intended to limit emissions outside of the authorized 
bandwidth.
    62. Consistent with the recent increased use of OOBE limits, we 
replace the emission mask requirements found in Sec. Sec.  22.357, 
22.359, and 22.861 with an OOBE limitation. We believe that OOBE 
limitations are preferable to emission masks for the PMS because OOBE 
limitations do not need to be revised every time a new technology is 
implemented (unlike emission masks). Moreover, OOBE limitations make 
more sense with channels that are often combined in blocks, since there 
is no need for a single licensee on adjacent channels to be required to 
use an emission mask on each channel to protect itself. OOBE 
limitations protect services operating beyond the outer edges of the 
channel block. Emission masks require protection of each individual 
channel within the block.
d. Standby Facilities
    63. Section 22.361 permits PMS licensees to install standby 
transmitters, without separate authorization, to continue service in 
the event of transmitter failure or during transmitter maintenance. It 
is now universally understood in the wireless industry that licensees 
are not required to obtain a separate authorization to install standby

[[Page 19301]]

transmitters. Eliminating Sec.  22.361 is warranted. We also note that 
doing so is in line with our desire to streamline or eliminate rules 
that are no longer necessary. Thus, we eliminate Sec.  22.361.
e. Directional Antennas
    64. Section 22.363 and Table C-2 to Sec.  22.361 set forth 
directional antenna technical requirements. These requirements were 
adopted at a time when the Commission generally considered fixed 
wireless operations to be secondary to mobile operations. These 
regulations appear to no longer be necessary because, when the 
Commission licenses spectrum today, it provides greater flexibility to 
licensees to use the spectrum for mobile or fixed operations. We 
eliminate Sec.  22.363 and Table C-2 to Sec.  22.361.
f. Wave Polarization
    65. Section 22.367 sets forth polarization requirements for the 
electromagnetic waves radiated by PMS providers. Where fixed and mobile 
services operate on a co-channel basis, the polarization restrictions 
may no longer be necessary or effective in reducing interference. We 
delete Sec.  22.367.
g. Access to Transmitters
    66. Section 22.373 generally requires PMS transmitters to be 
accessible only to persons authorized by the licensee. We remove Sec.  
22.373 from our rules. We believe that the rule is unnecessary due to 
the fact that licensees have an economic self-interest to prevent 
unauthorized access to their transmitters.
h. Replacement of Equipment
    67. Section 22.379 permits PMS licensees to replace equipment 
without notifying the Commission, provided that such equipment meets 
certain technical requirements. Licensees have known since the rule 
change in 1994 that applications are not required for replacement 
equipment.
    68. We therefore eliminate Sec.  22.379.
i. Auxiliary Test Transmitters
    69. Section 22.381 limits the use of auxiliary test transmitters to 
testing the performance of fixed receiving equipment located remotely 
from the control point. Section 22.381 further provides that such 
transmitters may only transmit on channels designated for mobile 
transmitters. We believe that Sec.  22.381 unnecessarily restricts the 
use of test equipment, and therefore we eliminate this section from our 
rules. We are aware of no harm that would arise from operating 
auxiliary test transmitters on any authorized channel, whether base or 
mobile, and no commenters have suggested otherwise.
4. Developmental Authorizations
    70. Part 22, subpart D--which includes Sec. Sec.  22.401, 22.403, 
22.409, 22.411, 22.413, 22.415, and 22.417--governs grant of 
developmental authorizations in the PMS. As pointed out in the Notice, 
a review of Commission records indicates that these rules are seldom 
used and, instead, parties frequently file waiver requests that are 
tantamount to requests for developmental authorizations.
a. Developmental Authorization of 43 MHz Paging Transmitters
    71. Sections 22.411 and 22.531(a) provide that 43 MHz channels can 
be initially assigned only as developmental authorizations. The 
requirements of Sec. Sec.  22.411 and 22.531(a) are intended to 
mitigate interference with the intermediate frequency stages of 
receivers in television sets and video recorders. Section 22.411 also 
requires licensees to conduct and file semi-annual surveys during the 
first two years of operation to determine the extent of any 
interference to broadcast television receivers. We believe that 
Sec. Sec.  22.411 and 22.531(a) are no longer required. Modern NTSC 
televisions are no longer particularly vulnerable to interference from 
the 43 MHz paging frequencies. Previously, television sets utilized an 
intermediate frequency amplifier that converted the received channel to 
a frequency between 40 and 46 MHz. New television sets, on the other 
hand, no longer employ this type of technology. In addition, the number 
of licensees and new applications for these paging channels is minimal. 
Consequently, it appears that there is no need for developmental 
authorizations for 43 MHz paging transmitters, and we delete these 
sections of our rules.
b. Developmental Authorization of 928-960 MHz Fixed Transmitters
    72. Section 22.415 provides that channels in the 928-931 and 952-
960 MHz ranges may be assigned to fixed transmitters in point-to-
multipoint systems at short-spaced locations (i.e., those that do not 
meet the 70-mile separation requirement of Sec.  22.625(a)). The 
Commission cannot issue any developmental authorizations under Sec.  
22.415 unless it waives the licensing prohibition of Sec.  22.621. This 
language would no longer be necessary were we to adopt our proposal to 
eliminate Sec.  22.415. In light of the prohibition in Sec.  22.621 
against licensing any new 900 MHz frequencies, we eliminate Sec.  
22.415 and modify Sec.  22.625(a) by eliminating all text following the 
first sentence that pertains to short-spaced developmental 
authorizations under Sec.  22.415.
c. Developmental Authorization of Meteor Burst Systems
    73. Section 22.417 provides that Rural Radiotelephone Service (RRS) 
central office and rural subscriber stations in Alaska may use ``meteor 
burst'' propagation modes. Meteor burst systems bounce radio signals 
off the ionized trails of evaporating space rocks to receivers up to 
1,000 miles away. Meteor burst technology, however, only works in brief 
spurts because a typical meteor trail has an average duration of a few 
hundred milliseconds, while wait times between suitable trails can 
range from a few seconds to minutes. As such, the technology is well-
suited for bursty data transmissions but is not suitable for a 
continuous voice call. Section 22.725(c) provides that channels 42.40, 
44.10, 44.20 and 45.90 MHz may be used for such purposes in Alaska. 
Section 22.729 governs station operations using meteor burst 
propagation modes on these channels. There are no part 22 licensees on 
these channels in Alaska, although there are some licenses issued under 
part 90.
    74. We do not believe that RRS stations in Alaska would benefit 
from maintaining the licensing option under Sec. Sec.  22.417, 
22.725(c), and 22.729, and we delete these section from our rules. 
Currently, there are no licensees taking advantage of these rules. In 
addition, as a practical matter, meteor burst propagation cannot be 
used to transmit voice calls, which is at the core of the RRS. We also 
delete the definition of ``meteor burst propagation mode'' in Sec.  
22.99, the Sec.  22.313(a)(3) station identification requirements for 
Rural Radiotelephone Service subscriber stations using meteor burst 
propagation, and the Sec.  22.727(f) limits on transmitter output power 
for meteor burst stations.
5. Paging and Radiotelephone Service Rules
a. Composite Interference Contour Over Water
    75. Under Sec.  1.929(c)(1), any increase in the composite 
interference contour (CIC) of a site-based licensee in the Paging and 
Radiotelephone Service, Rural Radiotelephone Service, or 800 MHz 
Specialized Mobile Radio Service is a major modification of license 
that requires prior Commission approval. In March 2001, the Wireless 
Telecommunications Bureau conditionally waived Sec.  1.929(c)(1) to

[[Page 19302]]

permit expansion of paging CICs over water on a secondary basis.
    76. We amend Sec.  1.929(c)(1) and treat expansions of the CIC of a 
site-based licensee in the Paging and Radiotelephone Service, Rural 
Radiotelephone Service, or 800 MHz Specialized Mobile Radio Service 
over water, on a secondary, non-interference basis to any geographic 
area licensee in the same area, as a minor, not major, modification of 
license. We also define the term ``over water'' as ``over bodies of 
water that extend beyond county boundaries including, but not limited 
to, oceans, the Gulf of Mexico, and the Great Lakes.'' As a result, 
such expansions of the CIC are permissive and no notification to the 
Commission is required. The classification of these modifications as 
major can hamper a carrier's ability to respond to unexpected 
disruptions or to meet changes in consumer demand. Licensees providing 
service in coastal areas often need to relocate or adjust transmitting 
facilities in order to maintain and improve coverage. Moreover, CIC 
expansions that take place solely over water should pose no risk of 
interference to other systems on land, and Commission records indicate 
that we have not received any interference complaints arising from our 
current temporary policy of conditionally waiving Sec.  1.929(c)(1). We 
also note the benefits to both licensees and the Bureau derived from 
the removal of these particular regulatory filing requirements. We 
believe that our action here will facilitate the provision of PMS 
services to the public.
b. Nationwide Network Paging Channels
    77. Section 22.531(b) provides that frequencies 931.8875, 931.9125, 
and 931.9375 MHz may only be used for nationwide network paging 
service. Section 22.551 specifies the application process for such 
channels in the event one should become available for licensing, and 
provides additional rules for nationwide network paging service.
    78. We believe that allowing licensees on these channels to provide 
services other than nationwide network paging is in line with our 
policy to facilitate flexible service offerings, our attempts to 
achieve regulatory parity among competing wireless services, and the 
highly competitive state of the paging industry. Similarly, we will 
apply our general paging licensing rules, including competitive bidding 
procedures, to license these channels in the event that one becomes 
available for licensing. Therefore, we delete Sec. Sec.  22.313(a)(5), 
22.531(b) and 22.551 from our rules.
c. Additional Channel Policies
    79. Sections 22.539 and 22.569 govern the processing of 
applications for additional paging and mobile channels, respectively. 
In particular, these rules implement the Commission's general policy to 
assign only one paging or two mobile channels in an area to a carrier 
per application cycle. Carriers that seek to add channels to their 
systems in the same geographic service area may thus do so one at a 
time (two for mobile channels). Before applying for another channel, 
carriers must certify that service has commenced on the previously-
granted channel(s).
    80. We delete Sec. Sec.  22.539 and 22.569 from our rules. Today, 
the part 22 paging channels set forth in these rule sections are 
licensed on a geographic area basis rather than assigned on a site-by-
site basis. We no longer place a blanket restriction on the amount of 
spectrum that a single entity may hold in one area (although we review 
competitive issues involving paging licensees on a case-by-case basis). 
Incumbents operating on a site-by-site basis may expand their systems 
by assignment or transfer of a license or by participating in a 
spectrum auction. In addition, under our current licensing scheme for 
paging channels, we place no blanket restrictions on the number of 
overlapping part 22 paging channels that a particular entity may hold 
in one area. Consequently, we believe that maintaining these rules is 
unnecessary.
d. Provision of Rural Radiotelephone Service on Paging Channels
    81. Section 22.563 requires stations in the Paging and 
Radiotelephone Service that provide two-way public mobile service on 
certain channels to also provide Rural Radiotelephone Service (RRS) 
upon request from a subscriber. These channels are now predominantly 
assigned for use by one-way paging systems that are technically 
incapable of providing RRS. We believe that Sec.  22.563 is no longer 
needed. Not only are most of these channels assigned for one-way paging 
use, there are now a number of wireless telephone service alternatives 
to RRS (e.g., cellular, PCS, and some SMR). Moreover, consumers in many 
areas--including rural areas--have begun to substitute cellular, PCS, 
and some SMR service for landline service. This nascent trend is driven 
in part by wireless service plans that include the price of long 
distance service that may reduce a consumer's aggregate charges for 
local and toll service. In light of these circumstances and the fact 
that rural subscribers may readily obtain fixed basic telephone 
services from a variety of sources, we delete Sec.  22.563 from our 
rules.
e. Transmission Power Limits
    82. Section 22.565(g) limits the effective radiated power (ERP) of 
dispatch and auxiliary test transmitters to 100 watts. We delete Sec.  
22.565(g) so that test transmitters may operate, pursuant to Sec.  
22.565(a), at a limit of 150 watts. We note that because we have 
decided to permit auxiliary test transmitters to operate on both base 
and mobile frequencies, licensees can now choose to operate on either 
the base or the mobile side of the frequency subject to the 150-watt 
limit under Sec.  22.565(a).
f. Dispatch Service
    83. Section 22.577 governs the provision of dispatch service. We 
believe that the deletion of Sec.  22.577 of our rules is warranted. We 
find that the rule is outdated and no longer necessary. Moreover, 
``limits on output power and the functionality of the dispatch 
transmitter'' are out of line with the Commission's emphasis on 
``flexible spectrum use.'' In addition, part 90 dispatch operations are 
not subject to such restrictions, and that the removal of Sec.  22.577 
will ``expand the choices to wireless end users.'' We therefore delete 
Sec.  22.577.
g. Channels for Point-to-Point Operation--Microwave Channels
    84. Section 22.591 also includes a table of 2110-2130 and 2160-2180 
MHz microwave channels. In 1992, the Commission allocated these bands 
for use by emerging technologies (ET) services and no new systems may 
be authorized on these channels under part 22. Recently, the Commission 
allocated, inter alia, the 2110-2130 MHz band for Advanced Wireless 
Services (AWS). At present, both the 2110-2130 and 2160-2180 MHz bands 
are widely used for common carrier fixed microwave service.
    85. In addition, Sec.  22.601 specifies rules for modification of 
previously authorized part 22 stations on the 2110-2130 and 2160-2180 
MHz channels. Section 22.602 sets forth rules governing a transition 
period for Paging and Radiotelephone Service licensees on the microwave 
channels listed in Sec.  22.591 to relocate to other frequencies. We 
delete the microwave channels from the Sec.  22.591 table and delete 
Sec.  22.591(b) regarding the assignment of such channels. We will 
allow the licenses to expire at the end of their current 
authorizations, and we will not renew them for another license term. 
These microwave incumbents will, in the meantime, continue to be 
subject to

[[Page 19303]]

Sec. Sec.  22.601 and 22.602 (although once their license terms end, 
these sections will become superfluous). We will delete the cross-
reference to Sec.  22.591 in Sec. Sec.  22.601 and 22.602 and, instead, 
reference the 2110-2130 and 2160-2180 MHz channels.
h. Effective Radiated Power Limits
    86. Section 22.593 specifies power limits for the channels 
enumerated in Sec.  22.591. Although we are deleting the microwave 
channels listed in Sec.  22.591, these microwave licensees are still 
subject to Sec.  22.593, which specifies the EIRP of the microwave 
channels listed in Sec.  22.591. Consequently, we will not amend this 
rule until after the subject licenses have expired.
i. Channel Usage Reports
    87. Section 22.655 requires a subcategory of paging licensees--470-
512 MHz band licensees--to submit defined channel usage reports every 
three months. Only two carriers must still file these reports; they 
have maintained mobile usage of the channels for some time, and loading 
reporting requirements for other paging operators have been eliminated.
    88. We eliminate Sec.  22.655 so that we no longer require 
licensees engaged in trunked mobile operations to measure and report 
channel usage. The continuation of this reporting requirement is 
burdensome and no longer necessary. Moreover, there are only two 
licensees that currently remain subject to this requirement, while the 
majority of CMRS licensees using the 470-512 MHz band do not have to 
submit these quarterly reports. Given these circumstances, we do not 
believe that the continued channel usage reporting requirements are 
warranted.
6. Rural Radiotelephone Service Rules-Channels for Basic Exchange 
Telephone Radio Systems
    89. Section 22.757 specifies channels (in addition to those listed 
in Sec.  22.725) in the frequency ranges 816.0125-820.2375 MHz and 
861.0125-865.2375 MHz that are allocated for paired assignment to basic 
exchange telephone radio systems (BETRS). The Commission auctioned 
these channels on a geographic area basis in Auction 16, and that they 
are no longer available for assignment to BETRS. We therefore eliminate 
Sec.  22.757 and amend the first sentence of Sec.  22.725 to provide 
that the channels listed therein are available for paired assignment to 
BETRS.
7. Offshore Radiotelephone Service Rules
    90. Subpart I of part 22--which includes Sec. Sec.  22.1001, 
22.1003, 22.1005, 22.1007, 22.1009, 22.1011, 22.1013, 22.1015, 22.1025, 
22.1031, 22.1035, and 22.1037--governs the licensing and operation of 
Offshore Radiotelephone Service (ORS) stations. These stations provide 
telephone service to subscribers located on oil exploration and 
production platforms in the Gulf of Mexico. At this time, we take no 
action on the majority of the rules in this Subpart, and we will 
revisit the ORS rules at another time. We also revise Sec.  22.1003, to 
revise the eligibility requirements to eliminate references to ``common 
carriers'' and instead to rely on language similar to that used in 
parts 24 and 27 (``[a]ny entity, other than those precluded by section 
310 of the Communications Act of 1934, as amended, 47 U.S.C. 310, * * * 
is eligible to hold a license under this part'').
Procedural Matters
Final Regulatory Flexibility Analysis
    91. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the Notice of Proposed Rulemaking (Notice) in this 
proceeding, WT Docket No. 03-103. The Commission sought written public 
comment on the proposals in the Notice, including comment on the IRFA. 
This present Final Regulatory Flexibility Analysis (FRFA) conforms to 
the RFA.

D. Need for, and Objectives of, the Report and Order

    92. The Report and Order addresses revision of the rules and 
spectrum band plan for the 800 MHz commercial Air-Ground Radiotelephone 
Service spectrum. A total of four megahertz of spectrum is currently 
allocated for this service. Although the Commission originally licensed 
six operators to provide service in this band on a shared basis using 
narrowband channels, only one licensee (Verizon Airfone) continues to 
operate in the band. Its operations are subject to a number of specific 
technical requirements designed to facilitate sharing among licensees. 
Given the constraints on current operations in this band and the 
changing demands of the public with respect to wireless 
telecommunications services, the Notice requested comment on how best 
to reconfigure this band and revise the related service rules in order 
to meet consumer needs and promote flexible, competitive use of this 
spectrum.
    93. The Report and Order makes available new nationwide air-ground 
licenses in three band configurations: (1) Band plan 1, comprised of 
two overlapping, shared, cross-polarized 3 MHz licenses (licenses A and 
B, respectively), (2) band plan 2, comprised of an exclusive 3 MHz 
license and an exclusive 1 MHz license (licenses C and D, 
respectively), and (3) band plan 3, comprised of an exclusive 1 MHz 
license and an exclusive 3 MHz license (licenses E and F, 
respectively), with the blocks at opposite ends of the band from the 
second configuration. Licenses will have a 10-year term. Licenses will 
be awarded to winning bidders for the licenses comprising the 
configuration that receives the highest aggregate gross bid, subject to 
long-form license application review.
    94. The Report and Order also takes action on a range of proposals 
for updating the Commission's part 1, 22, and 90 rules. Some of these 
steps are taken pursuant to the Commission's biennial review 
obligations as well as to implement the results of staff review of the 
part 22 non-cellular rules. The Report and Order revises and eliminates 
many rule sections in light of technological change, increased 
competition in Commercial Mobile Radio Services, supervening changes to 
the Commission's rules, or a combination of factors. These rule changes 
also include actions to harmonize the treatment of various wireless 
services.

E. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA

    95. We received no comments in response to the IRFA. As described 
in section E below, we have nonetheless considered potential 
significant economic impacts of our actions on small entities.

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

    96. The RFA directs agencies to provide a description of, and, 
where feasible, an estimate of, the number of small entities that may 
be affected by the rules adopted herein. 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;

[[Page 19304]]

and (3) satisfies any additional criteria established by the Small 
Business Administration (SBA).
    97. Wireless Service Providers. The SBA has developed a small 
business size standard for wireless firms within the two broad economic 
census categories of ``Paging'' and ``Cellular and Other Wireless 
Telecommunications.'' Under both SBA categories, a wireless business is 
small if it has 1,500 or fewer employees. For the census category of 
Paging, Census Bureau data for 1997 show that there were 1,320 firms in 
this category, total, that operated for the entire year. Of this total, 
1,303 firms had employment of 999 or fewer employees, and an additional 
17 firms had employment of 1,000 employees or more. Thus, under this 
category and associated small business size standard, the great 
majority of firms can be considered small. For the census category 
Cellular and Other Wireless Telecommunications, Census Bureau data for 
1997 show that there were 977 firms in this category, total, that 
operated for the entire year. Of this total, 965 firms had employment 
of 999 or fewer employees, and an additional 12 firms had employment of 
1,000 employees or more. Thus, under this second category and size 
standard, the great majority of firms can, again, be considered small.
    98. Cellular Licensees. As noted, the SBA has developed a small 
business size standard for wireless firms within the broad economic 
census category ``Cellular and Other Wireless Telecommunications.'' 
Under this SBA category, a wireless business is small if it has 1,500 
or fewer employees. For the census category Cellular and Other Wireless 
Telecommunications firms, Census Bureau data for 1997 show that there 
were 977 firms in this category, total, that operated for the entire 
year. Of this total, 965 firms had employment of 999 or fewer 
employees, and an additional 12 firms had employment of 1,000 employees 
or more. Thus, under this category and size standard, the great 
majority of firms can be considered small. According to the most recent 
Trends in Telephone Service data, 719 carriers reported that they were 
engaged in the provision of cellular service, personal communications 
service, or specialized mobile radio telephony services, which are 
placed together in the data. We have estimated that 294 of these are 
small, under the SBA small business size standard.
    99. Common Carrier Paging. The SBA has developed a small business 
size standard for wireless firms within the broad economic census 
categories of ``Cellular and Other Wireless Telecommunications.'' Under 
this SBA category, a wireless business is small if it has 1,500 or 
fewer employees. For the census category of Paging, Census Bureau data 
for 1997 show that there were 1,320 firms in this category, total, that 
operated for the entire year. Of this total, 1,303 firms had employment 
of 999 or fewer employees, and an additional 17 firms had employment of 
1,000 employees or more. Thus, under this category and associated small 
business size standard, the great majority of firms can be considered 
small.
    100. In the Paging Second Report and Order, 62 FR 11616, March 12, 
1997, the Commission adopted a size standard for ``small businesses'' 
for purposes of determining their eligibility for special provisions 
such as bidding credits and installment payments. A small business is 
an entity that, together with its affiliates and controlling 
principals, has average gross revenues not exceeding $15 million for 
the preceding three years. The SBA has approved this definition. An 
auction of Metropolitan Economic Area (MEA) licenses commenced on 
February 24, 2000, and closed on March 2, 2000. Of the 2,499 licenses 
auctioned, 985 were sold. Fifty-seven companies claiming small business 
status won 440 licenses. An auction of MEA and Economic Area (EA) 
licenses commenced on October 30, 2001, and closed on December 5, 2001. 
Of the 15,514 licenses auctioned, 5,323 were sold. One hundred thirty-
two companies claiming small business status purchased 3,724 licenses. 
A third auction, consisting of 8,874 licenses in each of 175 EAs and 
1,328 licenses in all but three of the 51 MEAs commenced on May 13, 
2003, and closed on May 28, 2003. Seventy-seven bidders claiming small 
or very small business status won 2,093 licenses. Currently, there are 
approximately 74,000 Common Carrier Paging licenses. According to the 
most recent Trends in Telephone Service, 608 private and common 
carriers reported that they were engaged in the provision of either 
paging or ``other mobile'' services. Of these, we estimate that 589 are 
small, under the SBA-approved small business size standard. We estimate 
that the majority of common carrier paging providers would qualify as 
small entities under the SBA definition.
    101. Offshore Radiotelephone Service. This service operates on 
several ultra high frequency (UHF) television broadcast channels that 
are not used for television broadcasting in the coastal areas of states 
bordering the Gulf of Mexico. There are currently approximately 55 
licensees in this service. We are unable to estimate at this time the 
number of licensees that would qualify as small under the SBA's small 
business size standard for ``Cellular and Other Wireless 
Telecommunications'' services. Under that SBA small business size 
standard, a business is small if it has 1,500 or fewer employees.
    102. Rural Radiotelephone Service. The Commission has not adopted a 
size standard for small businesses specific to the Rural Radiotelephone 
Service. A significant subset of the Rural Radiotelephone Service is 
the Basic Exchange Telephone Radio System (BETRS). The Commission uses 
the SBA's small business size standard applicable to ``Cellular and 
Other Wireless Telecommunications,'' i.e., an entity employing no more 
than 1,500 persons. There are approximately 1,000 licensees in the 
Rural Radiotelephone Service, and the Commission estimates that there 
are 1,000 or fewer small entity licensees in the Rural Radiotelephone 
Service that may be affected by the rules and policies proposed herein.
    103. Air-Ground Radiotelephone Service. The Commission has not 
adopted a small business size standard specific to the Air-Ground 
Radiotelephone Service. Again, we note that SBA has a small business 
size standard applicable to ``Cellular and Other Wireless 
Telecommunications,'' i.e., an entity employing no more than 1,500 
persons. There are approximately 100 licensees in the Air-Ground 
Radiotelephone Service, and we estimate that almost all of them qualify 
as small under the SBA small business size standard. (See also the 
Notice and associated IRFA in this proceeding, which describe two 
proposed small business size standards for the commercial Air-Ground 
Radiotelephone Service.)
    104. Wireless Communications Equipment Manufacturers. Some of the 
actions in the Report and Order could also benefit equipment 
manufacturers. The SBA has established a small business size standard 
for Radio and Television Broadcasting and Wireless Communications 
Equipment Manufacturing. Examples of products in this category include 
``transmitting and receiving antennas, cable television equipment, GPS 
equipment, pagers, cellular phones, mobile communications equipment, 
and radio and television studio and broadcasting equipment'' and may 
include other devices that transmit and receive IP-enabled services, 
such as personal digital assistants (PDAs). Under the SBA size 
standard, firms are considered small if they have 750 or fewer

[[Page 19305]]

employees. According to Census Bureau data for 1997, there were 1,215 
establishments in this category that operated for the entire year. Of 
those, there were 1,150 that had employment of under 500, and an 
additional 37 that had employment of 500 to 999. The percentage of 
wireless equipment manufacturers in this category was approximately 
61.35%, so we estimate that the number of wireless equipment 
manufacturers with employment of under 500 was actually closer to 706, 
with and additional 23 establishments having employment of between 500 
and 999. Consequently, we estimate that the majority of wireless 
communications equipment manufacturers are small entities that may be 
affected by our action.

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

    105. In this Report and Order, we are not adopting any new rules 
that would add reporting, recordkeeping, or other compliance 
requirements. We only modify or eliminate certain rules, thereby 
eliminating economic burdens for small and other sized entities. For 
example, we amend Sec.  1.929(c)(1) of our rules to specify that 
expansion of a composite interference contour (CIC) of a site-based 
licensee in the Paging and Radiotelephone Service--as well as the Rural 
Radiotelephone Service and 800 MHz Specialized Mobile Radio Service--
over water on a secondary, non-interference basis should be classified 
as a minor (rather than major) modification of license. Such 
reclassification should substantially reduce the filing requirements 
associated with these license modifications.

H. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, And Significant Alternatives Considered

    106. The RFA requires an agency to describe any significant 
alternatives that it has considered in developing its 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 and reporting requirements under the rule for such 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 
such small entities.''
    107. We do not anticipate any adverse impact on small entities 
resulting from either reconfiguration of the 800 MHz Air-Ground 
Radiotelephone Service band plan or revision of the related service 
rules. Currently, there is only one licensee in this band and demand 
for its service has markedly declined. The flexible approach to 
reconfiguration of the 800 MHz air-ground band adopted in the Report 
and Order will promote our goal of facilitating the highest valued use 
of this spectrum, resulting in the provision of wireless communications 
services that better meet the needs of the traveling public onboard 
aircraft.
    108. In order to promote competition in the 800 MHz air-ground 
band, the Report and Order prohibits any party from obtaining a 
controlling interest, either at auction or by a post-auction 
transaction, in more than three megahertz of spectrum (either shared or 
exclusive) in the band. No single entity, therefore, may hold more than 
one license in any of the available band configurations. The Report and 
Order adopts limited technical constraints in order to provide the 
eventual licensees with significant operational flexibility to provide 
broadband telecommunications services to commercial airline passengers 
and others while onboard aircraft. We note that the technical rules 
will, among other things, ensure that operations in this band do not 
cause harmful interference to adjacent bands, including cellular, SMR, 
and public safety. The Report and Order provides that future licensees 
in the 800 MHz air-ground band, as well as other interested parties, 
will have the opportunity to engage in spectrum leasing under the 
Commission's rules. Future licensees will also be permitted to engage 
in partitioning and/or disaggregation of their licenses. These 
regulatory opportunities are intended to provide the air-ground 
marketplace greater flexibility to respond to consumer demand. The 
regulatory approach adopted in the Report and Order will benefit both 
small and large entities.
    109. Regarding the modification or elimination of rules stemming 
from our Biennial Regulatory Review responsibilities, we do not 
anticipate any adverse impact on small entities. To the contrary, to 
the extent that there is any direct impact at all, streamlining and 
harmonizing technical and operational rules should result in decreasing 
regulatory burdens that benefit both small and large entities.

I. Report to Congress

    110. The Commission will send a copy of the Report and Order, 
including this FRFA, in a report to be sent to Congress pursuant to the 
Congressional Review Act. In addition, the Commission will send a copy 
of the Report and Order, including this FRFA, to the Chief Counsel for 
Advocacy of the SBA.

Ordering Clauses

    111. Pursuant to the authority contained in sections 1, 4(i), 11, 
303(r) and (y), 308, 309, and 332 of the Communications Act of 1934, as 
amended, 47 U.S.C. 151, 154(i), 161, 303(r), 303(y), 308, 309, and 332, 
this Report and Order is hereby adopted, and parts 1, 22, and 90 of the 
Commission's rules are amended accordingly.
    112. Pursuant to sections 4(i), 301, and 307 of the Communications 
Act, as amended, 47 U.S.C. 154(i), 301, and 307, a new license for 
Station KNKG804, is granted to Verizon Airfone Inc. for a five-year 
non-renewable term in accordance with the terms and conditions set 
forth above (file no. 0001716212).

List of Subjects

47 CFR Part 1

    Administrative practice and procedure, Communications common 
carriers, Radio, Reporting and Recordkeeping requirements, 
Telecommunications.

47 CFR Part 22

    Communications common carriers, Radio.

47 CFR Part 90

    Business and Industry, Common carriers, Radio, Reporting and 
recordkeeping requirements.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Rule Changes

0
For the reasons discussed in the preamble, the Federal Communications 
Commission proposes to amend 47 CFR parts 1, 22, and 90 as follows:

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 continues to read as follows:

    Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j), 
155, 157, 225, and 303(r).


0
2. In Sec.  1.903, revise paragraph (c) to read as follows:


Sec.  1.903  Authorization required.

* * * * *
    (c) Subscribers. Authority for subscribers to operate mobile or 
fixed stations in the Wireless Radio Services,

[[Page 19306]]

except for certain stations in the Rural Radiotelephone Service, is 
included in the authorization held by the licensee providing service to 
them. Subscribers are not required to apply for, and the Commission 
does not accept, applications from subscribers for individual mobile or 
fixed station authorizations in the Wireless Radio Services. Individual 
authorizations are required to operate rural subscriber stations in the 
Rural Radiotelephone Service, except as provided in Sec.  22.703 of 
this chapter. Individual authorizations are required for end users of 
certain Specialized Mobile Radio Systems as provided in Sec.  90.655 of 
this chapter. In addition, certain ships and aircraft are required to 
be individually licensed under parts 80 and 87 of this chapter. See 
Sec. Sec.  80.13, 87.18 of this chapter.

0
3. In Sec.  1.929, revise paragraph (c)(1) to read as follows:


Sec.  1.929  Classification of filings as major or minor.

* * * * *
    (c) * * *
    (1) In the Paging and Radiotelephone Service, Rural Radiotelephone 
Service and 800 MHz Specialized Mobile Radio Service (SMR), any change 
that would increase or expand the applicant's existing composite 
interference contour, except extensions of a composite interference 
contour over bodies of water that extend beyond county boundaries 
(i.e., including but not limited to oceans, the Gulf of Mexico, and the 
Great Lakes) on a secondary basis.
* * * * *

0
4. Add Sec.  1.958 to read as follows:


Sec.  1.958  Distance computation.

    The method given in this section must be used to compute the 
distance between any two locations, except that, for computation of 
distance involving stations in Canada and Mexico, methods for distance 
computation specified in the applicable international agreement, if 
any, must be used instead. The result of a distance calculation under 
parts 21 and 101 of this chapter must be rounded to the nearest tenth 
of a kilometer. The method set forth in this paragraph is considered to 
be sufficiently accurate for distances not exceeding 475 km (295 
miles).
    (a) Convert the latitudes and longitudes of each reference point 
from degree-minute-second format to degree-decimal format by dividing 
minutes by 60 and seconds by 3600, then adding the results to degrees.
[GRAPHIC] [TIFF OMITTED] TR13AP05.008

    (b) Calculate the mean geodetic latitude between the two reference 
points by averaging the two latitudes:
[GRAPHIC] [TIFF OMITTED] TR13AP05.009

    (c) Calculate the number of kilometers per degree latitude 
difference for the mean geodetic latitude calculated in paragraph (b) 
of this section as follows:

KPDlat = 111.13209 - 0.56605 cos 2ML + 0.00120 cos 4ML

    (d) Calculate the number of kilometers per degree of longitude 
difference for the mean geodetic latitude calculated in paragraph (b) 
of this section as follows:

KPDlon = 111.41513 cos 5ML - 0.09455 cos 3ML + 0.00012 cos 
5ML

    (e) Calculate the North-South distance in kilometers as follows:

NS = KPDlat x (LAT1dd - LAT2dd)

    (f) Calculate the East-West distance in kilometers as follows:

EW = KPDlon x (LON1dd - LON2dd)

    (g) Calculate the distance between the locations by taking the 
square root of the sum of the squares of the East-West and North-South 
distances:

[GRAPHIC] [TIFF OMITTED] TR13AP05.010

    (h) Terms used in this section are defined as follows:
    (1) LAT1dd and LON1dd are the coordinates of 
the first location in degree-decimal format.
    (2) LAT2dd and LON2dd are the coordinates of 
the second location in degree-decimal format.
    (3) ML is the mean geodetic latitude in degree-decimal format.
    (4) KPDlat is the number of kilometers per degree of 
latitude at a given mean geodetic latitude.
    (5) KPDlon is the number of kilometers per degree of 
longitude at a given mean geodetic latitude.
    (6) NS is the North-South distance in kilometers.
    (7) EW is the East-West distance in kilometers.
    (8) DIST is the distance between the two locations, in kilometers.

0
5. Add Sec.  1.959 to read as follows:


Sec.  1.959  Computation of average terrain elevation.

    Except as otherwise specified in Sec.  90.309(a)(4) of this 
chapter, average terrain elevation must be calculated by computer using 
elevations from a 30 second point or better topographic data file. The 
file must be identified. If a 30 second point data file is used, the 
elevation data must be processed for intermediate points using 
interpolation techniques; otherwise, the nearest point may be used. In 
cases of dispute, average terrain elevation determinations can also be 
done manually, if the results differ significantly from the computer 
derived averages.
    (a) Radial average terrain elevation is calculated as the average 
of the elevation along a straight line path from 3 to 16 kilometers (2 
and 10 miles) extending radially from the antenna site. If a portion of 
the radial path extends over foreign territory or water, such portion 
must not be included in the computation of average elevation unless the 
radial path again passes over United States land between 16 and 134 
kilometers (10 and 83 miles) away from the station. At least 50 evenly 
spaced data points for each radial should be used in the computation.
    (b) Average terrain elevation is the average of the eight radial 
average terrain elevations (for the eight cardinal radials).
    (c) For locations in Dade and Broward Counties, Florida, the method 
prescribed above may be used or average terrain elevation may be 
assumed to be 3 meters (10 feet).


Sec.  1.1102  [Amended]

0
6. In the table in Sec.  1.1102, revise page 19 of the table by 
removing row entry 16.h. ``Air Ground Individual''. The revised page 19 
is set forth below.

[[Page 19307]]

[GRAPHIC] [TIFF OMITTED] TR13AP05.011

Sec.  1.2003  [Amended]

0
7. In Sec.  1.2003, remove the entry for ``FCC 409 Airborne Mobile 
Radio Telephone License Application;''.

PART 22--PUBLIC MOBILE SERVICES

0
8. The authority citation for part 22 continues to read as follows:

    Authority: 47 U.S.C. 154, 222, 303, 309 and 332.


0
9. In Sec.  22.1, revise paragraph (b) to read as follows:


Sec.  22.1  Basis and purpose.

* * * * *
    (b) Purpose. The purpose of these rules is to establish the 
requirements and conditions under which radio stations may be licensed 
and used in the Public Mobile Services.

0
10. In Sec.  22.3, revise paragraph (b) to read as follows:


Sec.  22.3  Authorization required.

* * * * *
    (b) Authority for subscribers to operate mobile or fixed stations 
in the Public Mobile Services, except for certain stations in the Rural 
Radiotelephone Service, is included in the authorization held by the 
licensee providing service to them. Subscribers are not required to 
apply for, and the FCC does not accept applications from subscribers 
for, individual mobile or fixed station authorizations in the Public 
Mobile Services, except that individual authorizations are required to 
operate rural subscriber stations in the Rural Radiotelephone Service 
under certain circumstances. See Sec.  22.703.

0
11. Revise Sec.  22.7 to read as follows:


Sec.  22.7  General eligibility.

    Any entity, other than those precluded by section 310 of the 
Communications Act of 1934, as amended, 47 U.S.C. 310, is eligible to 
hold a license under this part. Applications are granted only if the 
applicant is legally, financially, technically and otherwise qualified 
to render the proposed service.

0
12. Amend in Sec.  22.99, by revising the definitions for ``Air-Ground 
Radiotelephone Service'', ``Cellular Radiotelephone Service'', 
``Channel'', ``Communications channel'', ``Control

[[Page 19308]]

channel'', ``Ground station'', ``Offshore Radiotelephone Service'', 
``Public Mobile Services'', and ``Rural Radiotelephone Service'', and 
by removing the terms ``Meteor burst propagation mode'', ``Radio Common 
Carrier'', and ``Wireline Common Carrier'' to read as follows:


Sec.  22.99  Definitions.

    Air-Ground Radiotelephone Service. A radio service in which 
licensees are authorized to offer and provide radio telecommunications 
service for hire to subscribers in aircraft.
* * * * *
    Cellular Radiotelephone Service. A radio service in which licensees 
are authorized to offer and provide cellular service for hire to the 
general public. This service was formerly titled Domestic Public 
Cellular Radio Telecommunications Service.
* * * * *
    Channel. The portion of the electromagnetic spectrum assigned by 
the FCC for one emission. In certain circumstances, however, more than 
one emission may be transmitted on a channel.
* * * * *
    Communications channel. In the Cellular Radiotelephone and Air-
Ground Radiotelephone Services, a channel used to carry subscriber 
communications.
* * * * *
    Control channel. In the Cellular Radiotelephone Service and the 
Air-Ground Radiotelephone Service, a channel used to transmit 
information necessary to establish or maintain communications. In the 
other Public Mobile Services, a channel that may be assigned to a 
control transmitter.
* * * * *
    Ground station. In the Air-Ground Radiotelephone Service, a 
stationary transmitter that provides service to airborne mobile 
stations.
* * * * *
    Offshore Radiotelephone Service. A radio service in which licensees 
are authorized to offer and provide radio telecommunication services 
for hire to subscribers on structures in the offshore coastal waters of 
the Gulf of Mexico.
* * * * *
    Public Mobile Services. Radio services in which licensees are 
authorized to offer and provide mobile and related fixed radio 
telecommunication services for hire to the public.
* * * * *
    Rural Radiotelephone Service. A radio service in which licensees 
are authorized to offer and provide radio telecommunication services 
for hire to subscribers in areas where it is not feasible to provide 
communication services by wire or other means.
* * * * *

0
13. Revise paragraph (d)(4) of Sec.  22.143 to read as follows:


Sec.  22.143  Construction prior to grant of application.

* * * * *
    (d) * * *
    (4) For any construction or alteration that would exceed the 
requirements of Sec.  17.7 of this chapter, the licensee has notified 
the appropriate Regional Office of the Federal Aviation Administration 
(FAA Form 7460-1), filed a request for antenna height clearance and 
obstruction marking and lighting specifications (FCC Form 854) with the 
FCC at WTB, Spectrum Management Resources and Technologies Division, 
1270 Fairfield Road, Gettysburg, PA 17325, or electronically via the 
FCC Antenna Structure Registration home page, wireless.fcc.gov/antenna/.
* * * * *


Sec.  22.157  [Removed]

0
14. Remove Sec.  22.157.


Sec.  22.159  [Removed]

0
15. Remove Sec.  22.159.


Sec.  22.161  [Removed]

0
16. Remove Sec.  22.161.


Sec.  22.313  [Amended]

0
17. Remove and reserve paragraphs (a)(3) and (a)(5) of Sec.  22.313.

0
18. Revise Sec.  22.351 to read as follows:


Sec.  22.351  Channel assignment policy.

    The channels allocated for use in the Public Mobile Services are 
listed in the applicable subparts of this part. Channels and channel 
blocks are assigned in such a manner as to facilitate the rendition of 
service on an interference-free basis in each service area. Except as 
otherwise provided in this part, each channel or channel block is 
assigned exclusively to one licensee in each service area. All 
applicants for, and licensees of, stations in the Public Mobile 
Services shall cooperate in the selection and use of channels in order 
to minimize interference and obtain the most efficient use of the 
allocated spectrum.

0
19. In Sec.  22.352, revise the first sentence of the introductory 
text, to read as follows:


Sec.  22.352  Protection from interference.

    Public Mobile Service stations operating in accordance with 
applicable FCC rules and the terms and conditions of their 
authorizations are normally considered to be non-interfering. * * *
* * * * *

0
20. Revise Sec.  22.357 to read as follows:


Sec.  22.357  Emission types.

    Any authorized station in the Public Mobile Services may transmit 
emissions of any type(s) that comply with the applicable emission rule, 
i.e. Sec.  22.359, Sec.  22.861 or Sec.  22.917.

0
21. Revise Sec.  22.359 to read as follows:


Sec.  22.359  Emission limitations.

    The rules in this section govern the spectral characteristics of 
emissions in the Public Mobile Services, except for the Air-Ground 
Radiotelephone Service (see Sec.  22.861, instead) and the Cellular 
Radiotelephone Service (see Sec.  22.917, instead).
    (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 these rules is based on 
the use of measurement instrumentation employing a resolution bandwidth 
of 30 kHz or more. In the 60 kHz bands immediately outside and adjacent 
to the authorized frequency range or channel, a resolution bandwidth of 
at least one percent of the emission bandwidth of the fundamental 
emission of the transmitter may be employed. A narrower resolution 
bandwidth is permitted in all cases to improve measurement accuracy 
provided the measured power is integrated over the full required 
measurement bandwidth (i.e., 30 kHz or 1 percent of emission bandwidth, 
as specified). The emission bandwidth is defined as the width of the 
signal between two points, one below the carrier center frequency and 
one above the carrier center frequency, outside of which all emissions 
are attenuated at least 26 dB below the transmitter power.
    (c) Alternative out of band emission limit. Licensees in the Public 
Mobile Services may establish an alternative out of band emission limit 
to be used at specified frequencies (band edges) 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

[[Page 19309]]

transmitter operating in any of the Public Mobile Services 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.  22.361  [Removed]

0
22. Remove Sec.  22.361.


Sec.  22.363  [Removed]

0
23. Remove Sec.  22.363.


Sec.  22.367  [Removed]

0
24. Remove Sec.  22.367.


Sec.  22.373  [Removed]

0
25. Remove Sec.  22.373.


Sec.  22.379  [Removed]

0
26. Remove Sec.  22.379.


Sec.  22.381  [Removed]

0
27. Remove Sec.  22.381.

0
28. In Sec.  22.401, the first sentence of the introductory text is 
revised to read as follows:


Sec.  22.401  Description and purposes of developmental authorizations.

    Eligible entities (see Sec.  22.7) may apply for, and the FCC may 
grant, authority to construct and operate one or more transmitters 
subject to the rules in this subpart and other limitations, waivers 
and/or conditions that may be prescribed. * * *
* * * * *


Sec.  22.411  [Removed]

0
29. Remove Sec.  22.411.


Sec.  22.415  [Removed]

0
30. Remove Sec.  22.415.


Sec.  22.417  [Removed]

0
31. Remove Sec.  22.417.


Sec.  22.531  [Amended]

0
32. Remove and reserve paragraphs (a) and (b) of Sec.  22.531.


Sec.  22.539  [Removed]

0
33. Remove Sec.  22.539.


Sec.  22.551  [Removed]

0
34. Remove Sec.  22.551.


Sec.  22.563  [Removed]

0
35. Remove Sec.  22.563.


Sec.  22.565  [Amended]

0
36. Remove paragraph (g) of Sec.  22.565.


Sec.  22.569  [ Removed]

0
37. Remove Sec.  22.569.


Sec.  22.577  [Removed]

0
38. Remove Sec.  22.577.


Sec.  22.591  [Amended]

0
39. In Sec.  22.591, in the introductory text, remove the table 
entitled ``Microwave channels'', and remove and reserve paragraph (b).

0
40. Revise Sec.  22.593 to read as follows:


Sec.  22.593  Effective radiated power limits.

    The effective radiated power of fixed stations operating on the 
channels listed in Sec.  22.591 must not exceed 150 Watts. The 
equivalent isotropically radiated power of existing fixed microwave 
stations (2110-2130 and 2160-2180 MHz) licensed under this part 
(pursuant to former rules) must not exceed the applicable limits set 
forth in Sec.  101.113 of this chapter.

0
41. Revise the section heading and introductory text of Sec.  22.601 to 
read as follows:


Sec.  22.601  Existing microwave stations licensed under this part.

    Existing microwave stations (2110-2130 and 2160-2180 MHz) licensed 
under this part (pursuant to former rules) are subject to the 
transition rules in Sec.  22.602. No new microwave systems will be 
authorized under this part.
* * * * *

0
42. Revise the introductory paragraph of Sec.  22.602 to read as 
follows:


Sec.  22.602  Transition of the 2110-2130 and 2160-2180 MHz channels to 
emerging technologies.

    The 2110-2130 and 2160-2180 MHz microwave channels formerly listed 
in Sec.  22.591 have been re-allocated for use by emerging technologies 
(ET) services. No new systems will be authorized under this part. The 
rules in this section provide for a transition period during which 
existing Paging and Radiotelephone Service (PARS) licensees using these 
channels may relocate operations to other media or to other fixed 
channels, including those in other microwave bands. For PARS licensees 
relocating operations to other microwave bands, authorization must be 
obtained under part 101 of this chapter.
* * * * *

0
43. Revise paragraph (a) of Sec.  22.625 to read as follows:


Sec.  22.625  Transmitter locations.

* * * * *
    (a) 928-960 MHz. In this frequency range, the required minimum 
distance separation between co-channel fixed transmitters is 113 
kilometers (70 miles).
* * * * *


Sec.  22.655  [Removed]

0
44. Remove Sec.  22.655.

0
45. In Sec.  22.725, revise section heading, the first sentence of the 
introductory text, and by removing paragraph (c) to read as follows:


Sec.  22.725  Channels for conventional rural radiotelephone stations 
and basic exchange telephone radio systems.

    The following channels are allocated for paired assignment to 
transmitters that provide conventional rural radiotelephone service and 
to transmitters in basic exchange telephone radio systems. * * *
* * * * *


Sec.  22.727  [Amended]

0
46. Remove paragraph (f) of Sec.  22.727.


Sec.  22.729  [Removed]

0
47. Remove Sec.  22.729.

0
48. Revise Sec.  22.757 to read as follows:


Sec.  22.757  Channels for basic exchange telephone radio systems.

    The channels listed in Sec.  22.725 are also allocated for paired 
assignment to transmitters in basic exchange telephone radio systems.

0
49. Revise Sec.  22.801 to read as follows:


Sec.  22.801  Scope.

    The rules in this subpart govern the licensing and operation of 
air-ground stations and systems. The licensing and operation of these 
stations and systems is also subject to rules elsewhere in this part 
and in part 1 of this chapter that generally apply to the Public Mobile 
Services. In case of conflict, however, the rules in this subpart 
govern.

0
50. Section 22.803 is amended as follows:
0
a. Redesignate Sec.  22.803 as Sec.  22.807.
0
b. Revise the newly designated section heading.
0
c. Revise the introductory text.
0
d. Revise paragraphs (b)(1) and (b)(2).
0
e. Remove paragraph (c).
    The revisions read as follows:


Sec.  22.807  General aviation air-ground station application 
requirements.

    In addition to the information required by subparts B and D of this 
part, FCC Form 601 applications for authorization to operate a general 
aviation air-ground station must contain the applicable supplementary 
information described in this section.
* * * * *
    (b) Technical information. The following information is required by 
FCC Form 601.
    (1) Location description, city, county, state, geographic 
coordinates (NAD83) correct to 1 second, site elevation 
above mean sea level, proximity to adjacent market boundaries and 
international borders;

[[Page 19310]]

    (2) Antenna height to tip above ground level, antenna gain in the 
maximum lobe, the electric field polarization of the wave emitted by 
the antenna when installed as proposed;
* * * * *


Sec.  22.811  [Removed]

0
51. Remove Sec.  22.811.

0
52. Revise Sec.  22.815 to read as follows:


Sec.  22.815  Construction period for general aviation ground stations.

    The construction period (see Sec.  1.946 of this chapter) for 
general aviation ground stations is 12 months.


Sec.  22.819  [Removed]

0
53. Remove Sec.  22.819.

0
54. Add Sec.  22.853 to read as follows:


Sec.  22.853  Eligibility to hold interest in licenses limited to 3 MHz 
of spectrum.

    No individual or entity may hold, directly or indirectly, a 
controlling interest in licenses authorizing the use of more than three 
megahertz of spectrum (either shared or exclusive) in the 800 MHz 
commercial aviation Air-Ground Radiotelephone Service frequency bands 
(see Sec.  22.857). Individuals and entities with either de jure or de 
facto control of a licensee in these bands will be considered to have a 
controlling interest in its license(s). For purposes of this rule, the 
definitions of ``controlling interests'' and ``affiliate'' set forth in 
paragraphs (c)(2) and (c)(5) of Sec.  1.2110 of this chapter shall 
apply.

0
55. Revise Sec.  22.857 introductory text to read as follows:


Sec.  22.857  Frequency bands.

    The 849-851 MHz and 894-896 MHz frequency bands are designated for 
paired nationwide exclusive assignment to the licensee or licensees of 
systems providing radio telecommunications service, including voice 
and/or data service, to persons on board aircraft. Air-ground systems 
operating in these frequency bands are referred to in this part as 
``commercial aviation'' systems.
* * * * *

0
56. Revise Sec.  22.859 to read as follows:


Sec.  22.859  Incumbent commercial aviation air-ground systems.

    This section contains rules concerning continued operation of 
commercial aviation air-ground systems that were originally authorized 
prior to January 1, 2004 to provide radiotelephone service using 
narrowband (6 kHz) channels, and that have been providing service 
continuously since the original commencement of service (hereinafter 
``incumbent systems'').
    (a) An incumbent system may continue to operate under its 
authorization, for the remaining term of such authorization, subject to 
the terms and conditions attached thereto. Wherever such technical and 
operational conditions differ from technical and operational rules in 
this subpart, those conditions shall govern its operations.
    (b) Notwithstanding any other provision in this chapter, the 
licensee of an incumbent system shall not be entitled to an expectation 
of renewal of said authorization.
    (c) During the period that an incumbent system continues to operate 
and provide service pursuant to paragraph (a) of this section, air-
ground systems of licensees holding a new authorization for the 
spectrum within which the incumbent system operates must not cause 
interference to the incumbent system. Protection from interference 
requires that the signals of the new systems must not exceed a ground 
station received power of -130 dBm within a 6 kHz receive bandwidth, 
calculated assuming a 0 dBi vertically polarized receive antenna.

0
57. Revise Sec.  22.861 to read as follows:


Sec.  22.861  Emission limitations.

    The rules in this section govern the spectral characteristics of 
emissions for commercial aviation systems in the Air-Ground 
Radiotelephone Service. Commercial aviation air-ground systems may use 
any type of emission or technology that complies with the technical 
rules in this subpart.
    (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 these rules is based on 
the use of measurement instrumentation employing a resolution bandwidth 
of 100 kHz or greater. In the 1 MHz bands immediately outside and 
adjacent to the frequency block a resolution bandwidth of at least one 
percent of the emission bandwidth of the fundamental emission of the 
transmitter may be employed. A narrower resolution bandwidth is 
permitted in all cases to improve measurement accuracy provided the 
measured power is integrated over the full required measurement 
bandwidth (i.e., 100 kHz or 1 percent of emission bandwidth, as 
specified). The emission bandwidth is defined as the width of the 
signal between two points, one below the carrier center frequency and 
one above the carrier center frequency, outside of which all emissions 
are attenuated at least 26 dB below the transmitter power.
    (c) Alternative out of band emission limit. The licensee(s) of 
commercial aviation air-ground systems, together with affected 
licensees of Cellular Radiotelephone Service systems operating in the 
spectrum immediately below and adjacent to the commercial aviation air-
ground bands, may establish an alternative out of band emission limit 
to be used at the 849 MHz and 894 MHz 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.

0
58. Revise Sec.  22.863 to read as follows:


Sec.  22.863  Frequency stability.

    The frequency stability of equipment used under this subpart shall 
be sufficient to ensure that, after accounting for Doppler frequency 
shifts, the occupied bandwidth of the fundamental emissions remains 
within the authorized frequency bands of operation.


Sec.  22.865  [Removed]

0
59. Remove Sec.  22.865.

0
60. Revise Sec.  22.867 to read as follows:


Sec.  22.867  Effective radiated power limits.

    The effective radiated power (ERP) of ground and airborne stations 
operating on the frequency ranges listed in Sec.  22.857 must not 
exceed the limits in this section.
    (a) The peak ERP of airborne mobile station transmitters must not 
exceed 12 Watts.
    (b) The peak ERP of ground station transmitters must not exceed 500 
Watts.


Sec.  22.869  [Removed]

0
61. Remove Sec.  22.869.


Sec.  22.871  [Removed]

0
62. Remove Sec.  22.871.

0
63. Revise Sec.  22.873 to read as follows:


Sec.  22.873  Construction requirements for commercial aviation air-
ground systems.

    Licensees authorized to use more than one megahertz (1 MHz) of the 
800 MHz commercial aviation air-ground

[[Page 19311]]

spectrum allocation (see Sec.  22.857) must make a showing of 
``substantial service''' as set forth in this section. Failure by any 
such licensee to meet this requirement will result in forfeiture of the 
license and the licensee will be ineligible to regain it. Licensees 
authorized to use one megahertz or less of the 800 MHz commercial 
aviation air-ground spectrum allocation are not subject to the 
requirements in this section.
    (a) ``Substantial service'' is defined as service that is sound, 
favorable, and substantially above a level of mediocre service that 
just might minimally warrant renewal.
    (b) Each commercial aviation air-ground system subject to the 
requirements of this section must demonstrate substantial service 
within 5 years after grant of the authorization. Substantial service 
may be demonstrated by, but is not limited to, either of the following 
``safe harbor'' provisions:
    (1) Construction and operation of 20 ground stations, with at least 
one ground station located in each of the 10 Federal Aviation 
Administration regions; or,
    (2) Provision of service to the airspace of 25 of the 50 busiest 
airports (as measured by annual passenger boardings).


Sec.  22.875  [Removed]

0
64. Remove Sec.  22.875.

0
65. Add Sec.  22.877 to read as follows:


Sec.  22.877  Unacceptable interference to Part 90 non-cellular 800 MHz 
licensees from commercial aviation air-ground systems.

    The definition of unacceptable interference to non-cellular part 90 
licensees in the 800 MHz band from commercial aviation air-ground 
systems is the same as the definition set forth in Sec.  22.970 which 
is applicable to Cellular Radiotelephone Service systems.

0
66. Add Sec.  22.878 to read as follows:


Sec.  22.878  Obligation to abate unacceptable interference.

    This section applies only to commercial aviation ground stations 
transmitting in the 849-851 MHz band, other than commercial aviation 
ground stations operating under the authority of a license originally 
granted prior to January 1, 2004.
    (a) Strict responsibility. Any licensee who, knowingly or 
unknowingly, directly or indirectly, causes or contributes to causing 
unacceptable interference to a non-cellular part 90 licensee in the 800 
MHz band, as defined in Sec.  22.877, shall be strictly accountable to 
abate the interference, with full cooperation and utmost diligence, in 
the shortest time practicable. Interfering licensees shall consider all 
feasible interference abatement measures, including, but not limited 
to, the remedies specified in the interference resolution procedures 
set forth in Sec.  22.879. This strict responsibility obligation 
applies to all forms of interference, including out-of-band emissions 
and intermodulation.
    (b) Joint and Several responsibility. If two or more licensees, 
whether in the commercial aviation air-ground radiotelephone service or 
in the Cellular Radiotelephone Service (see Sec.  22.971), knowingly or 
unknowingly, directly or indirectly, cause or contribute to causing 
unacceptable interference to a non-cellular part 90 licensee in the 800 
MHz band, as defined in Sec.  22.877, such licensees shall be jointly 
and severally responsible for abating interference, with full 
cooperation and utmost diligence, in the shortest practicable time.
    (1) This joint and several responsibility rule requires interfering 
licensees to consider all feasible interference abatement measures, 
including, but not limited to, the remedies specified in the 
interference resolution procedures set forth in Sec.  22.879(c). This 
joint and several responsibility rule applies to all forms of 
interference, including out-of-band emissions and intermodulation.
    (2) Any licensee that can show that its signal does not directly or 
indirectly cause or contribute to causing unacceptable interference to 
a non-cellular part 90 licensee in the 800 MHz band, as defined in 
Sec.  22.877, shall not be held responsible for resolving unacceptable 
interference. Notwithstanding, any licensee that receives an 
interference complaint from a public safety/CII licensee shall respond 
to such complaint consistent with the interference resolution 
procedures set forth in Sec.  22.879.

0
67. Add Sec.  22.879 to read as follows:


Sec.  22.879  Interference resolution procedures.

    This section applies only to commercial aviation ground stations 
transmitting in the 849-851 MHz band, other than commercial aviation 
ground stations operating under the authority of a license originally 
granted prior to January 1, 2004.
    (a) Initial notification. Commercial aviation air-ground system 
licensees may receive initial notification of interference from non-
cellular part 90 licensees in the 800 MHz band pursuant to Sec.  
90.674(a) of this chapter.
    (1) Commercial aviation air-ground system licensees shall join with 
part 90 ESMR licensees and Cellular Radiotelephone Service licensees in 
utilizing an electronic means of receiving the initial notification 
described in Sec.  90.674(a) of this chapter. See Sec.  22.972.
    (2) Commercial aviation air-ground system licensees must respond to 
the initial notification described in Sec.  90.674(a) of this chapter 
as soon as possible and no later than 24 hours after receipt of 
notification from a part 90 public safety/CII licensee. This response 
time may be extended to 48 hours after receipt from other part 90 non-
cellular licensees provided affected communications on these systems 
are not safety related.
    (b) Interference analysis. Commercial aviation air-ground system 
licensees--who receive an initial notification described in Sec.  
90.674(a) of this chapter--shall perform a timely analysis of the 
interference to identify the possible source. Immediate on-site visits 
may be conducted when necessary to complete timely analysis. 
Interference analysis must be completed and corrective action initiated 
within 48 hours of the initial complaint from a part 90 public safety/
CII licensee. This response time may be extended to 96 hours after the 
initial complaint from other part 90 non-cellular licensees provided 
affected communications on these systems are not safety related. 
Corrective action may be delayed if the affected licensee agrees in 
writing (which may be, but is not required to be, recorded via e-mail 
or other electronic means) to a longer period.
    (c) Mitigation steps. Any commercial aviation air-ground system 
that is responsible for causing unacceptable interference to non-
cellular part 90 licensees in the 800 MHz band shall take affirmative 
measures to resolve such interference.
    (1) Commercial aviation air-ground system licensees found to 
contribute to unacceptable interference, as defined in Sec.  22.877, 
shall resolve such interference in the shortest time practicable. 
Commercial aviation air-ground system licensees must provide all 
necessary test apparatus and technical personnel skilled in the 
operation of such equipment as may be necessary to determine the most 
appropriate means of timely eliminating the interference. However, the 
means whereby interference is abated or the technical parameters that 
may need to be adjusted is left to the discretion of the commercial 
aviation air-ground system licensee, whose affirmative measures

[[Page 19312]]

may include, but not be limited to, the following techniques:
    (i) Increasing the desired power of the public safety/CII signal;
    (ii) Decreasing the power of the commercial aviation air-ground 
system signal;
    (iii) Modifying the commercial aviation air-ground system antenna 
height;
    (iv) Modifying the commercial aviation air-ground system antenna 
characteristics;
    (v) Incorporating filters into the commercial aviation air-ground 
system transmission equipment;
    (vi) Changing commercial aviation air-ground system frequencies; 
and
    (vii) Supplying interference-resistant receivers to the affected 
public safety/CII licensee(s). If this technique is used, in all 
circumstances, commercial aviation air-ground system licensees shall be 
responsible for all costs thereof.
    (2) Whenever short-term interference abatement measures prove 
inadequate, the affected part 90 non-cellular licensee shall, 
consistent with but not compromising safety, make all necessary 
concessions to accepting interference until a longer-term remedy can be 
implemented.
    (3) When a part 90 public safety licensee determines that a 
continuing presence of interference constitutes a clear and imminent 
danger to life or property, the licensee causing the interference must 
discontinue the associated operation immediately, until a remedy can be 
identified and applied. The determination that a continuing presence 
exists that constitutes a clear and imminent danger to life or 
property, must be made by written statement that:
    (i) Is in the form of a declaration, notarized affidavit, or 
statement under penalty or perjury, from an officer or executive of the 
affected public safety licensee;
    (ii) Thoroughly describes the basis of the claim of clear and 
imminent danger;
    (iii) Was formulated on the basis of either personal knowledge or 
belief after due diligence;
    (iv) Is not proffered by a contractor or other third party; and,
    (v) Has been approved by the Chief of the Wireless 
Telecommunication Bureau or other designated Commission official. Prior 
to the authorized official making a determination that a clear and 
imminent danger exists, the associated written statement must be served 
by hand-delivery or receipted fax on the applicable offending licensee, 
with a copy transmitted by the fastest available means to the 
Washington, DC office of the Commission's Wireless Telecommunications 
Bureau.

0
68. Add Sec.  22.880 to read as follows:


Sec.  22.880  Information exchange.

    (a) Prior notification. Public safety/CII licensees may notify a 
commercial aviation air-ground system licensee that they wish to 
receive prior notification of the activation or modification of a 
commercial aviation air-ground system ground station site in their 
area. Thereafter, the commercial aviation air-ground system licensee 
must provide the following information to the public safety/CII 
licensee at least 10 business days before a new ground station is 
activated or an existing ground station is modified:
    (1) Location;
    (2) Effective radiated power;
    (3) Antenna manufacturer, model number, height above ground level 
and up tilt angle, as installed;
    (4) Channels available for use.
    (b) Purpose of prior notification. The prior notification of ground 
station activation or modification is for informational purposes only: 
public safety/CII licensees are not afforded the right to accept or 
reject the activation of a proposed ground station or to unilaterally 
require changes in its operating parameters. The principal purposes of 
prior notification are to:
    (1) Allow a public safety licensee to advise the commercial 
aviation air-ground system licensee whether it believes a proposed 
ground station will generate unacceptable interference;
    (2) Permit commercial aviation air-ground system licensee(s) to 
make voluntary changes in ground station parameters when a public 
safety licensee alerts them to possible interference; and
    (3) Rapidly identify the source if interference is encountered when 
the ground station is activated.

0
69. Revise Sec.  22.1003 to read as follows:


Sec.  22.1003  Eligibility.

    Any eligible entity (see Sec.  22.7) may apply for central station 
license(s) and/or offshore subscriber licenses under this subpart.

PART 90--PRIVATE LAND MOBILE RADIO SERVICES

0
70. The authority citation for part 90 continues to read as follows:

    Authority: Sections 4(i), 11, 303(g), 303(r), and 332(c)(7) of 
the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 161, 
303(g), 303(r), 332(c)(7).


0
71. Revise Sec.  90.309(a)(1) to read as follows:


Sec.  90.309  Tables and figures.

    (a) * * *
    (1) Using the method specified in Sec.  1.958 of this chapter, 
determine the distances between the proposed land mobile base station 
and the protected co-channel television station and between the 
proposed land mobile base station and the protected adjacent channel 
television station. If the exact mileage does not appear in table A for 
protected co-channel television stations (or table B for channel 15 in 
New York and Cleveland and channel 16 in Detroit) or table E for 
protected adjacent channel television stations, the next lower mileage 
separation figure is to be used.
* * * * *
[FR Doc. 05-6948 Filed 4-12-05; 8:45 am]
BILLING CODE 6712-01-P