Report No. DC-2619         ACTION IN DOCKET CASE              June 24, 1994


          FCC CLARIFIES RULES RELATING TO LICENSE RENEWALS IN THE
         DOMESTIC PUBLIC CELLULAR RADIO TELECOMMUNICATIONS SERVICE
                          (CC DOCKET NO. 90-358)

     In response to petitions for clarification and further
reconsideration, the Commission has clarified its rules governing
the two-step procedure for comparative cellular renewal
proceedings.

     Under the two-step procedure, the Commission conducts a
threshold proceeding (step one hearing) to determine whether an
incumbent licensee is entitled to renewal expectancy for its
performance during the past license term.  If the presiding judge
in the step one hearing determines that the licensee does not
deserve a renewal expectancy, then a second hearing (step two)is
conducted in which the licensee is compared with the challenging
applicants to determine which application should be granted.

     BellSouth Corporation, BellSouth Enterprises, Inc. and
BellSouth Cellular Corp. (BellSouth), and GTE Corporation on behalf
of GTE Mobilnet Incorporated and Contel Cellular Incorporated filed
a Joint Petition for Clarification and Further Reconsideration of
the Commission's Reconsideration Order.  Also, U S West NewVector
Group, Inc. filed a Petition for Limited Clarification of that
Order.

     NewVector asked the Commission to clarify that footnote 8 of
the Commission's Reconsideration Order was not meant to imply that
unserved area applications or authorizations will play any role in
the cellular renewal process.  The Commission clarified that
neither footnote 8 nor any other part of its Reconsideration Order
is meant to imply that unserved area applications or authorizations
will play any role in the cellular renewal process.



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     The petitioners also requested procedural changes to the
Reconsideration Order.  Therefore, the Commission added language to
Section 22.942(d) of the Rules to explicitly state that if a waiver
of the step one hearing is granted, a renewal expectancy  issue
will be designated as part of the step two hearing and will remain
the most important comparative factor in deciding the case.

     The petitioners contended that the Commission rules failed to
specify the procedures to be followed in step one hearings, and
asked the Commission to provide for the filing of affirmative
direct cases on the renewal expectancy issue 90 days after the
hearing designation order is released.  They also asked the
Commission to provide for the filing of rebuttal cases 30 days
after filing of direct cases.  Further, they requested
clarification that the expedited hearing procedures of the rules
apply to step one hearings, just as they already apply to step two
hearings.

     The Commission said it would not specify by rule a timetable
for the submission of direct and rebuttal cases in step one
hearings.  However, the Commission amended Section 22.942(a) of the
rules to provide that renewal applicants will have 60 days after
the issuance of the Public Notice announcing the filing of
competing applications to file their renewal expectancy showing,
rather than the 30 days now specified in the rules.

     Finally, with respect to reporting requirements, the
Commission said the issue of what character reporting requirements
should be imposed on cellular renewal applicants and other Part 22
applicants can best be resolved in a broad rulemaking proceeding,
and not on reconsideration of its cellular renewal rules. 
Consequently, the Commission vacated the character reporting
requirements set forth in footnote six of the Reconsideration
Order.

     Action by the Commission June 13, 1994, by Memorandum Opinion
and Order on Further Reconsideration (FCC 94-164).  Chairman Hundt,
Commissioners Quello and Barrett, with Commissioners Ness and Chong
not participating.

                                   -FCC-

     News Media contact: Patricia A. Chew at (202) 418-0500.
     Common Carrier Bureau contact: R. Bart Gorman at (202) 632-
6450.