Report No. DC-2628         ACTION IN DOCKET CASE              July 20, 1994


            FCC SEEKS FURTHER COMMENT CONCERNING THE REGULATORY
                       TREATMENT OF MOBILE SERVICES
                          (GN DOCKET NO. 93-252)

     The FCC is seeking further comment on whether management
agreements and resale arrangements should be treated as
attributable interest for purposes of applying the Commission's
rules relating to: 1) the personal communications service (PCS)
spectrum aggregation cap; 2) the PCS-cellular cross-ownership
restrictions; and, 3) any overall commercial mobile radio service
(CMRS) spectrum aggregation cap the Commission may establish.

     On June 13, 1994, the Commission reconsidered and clarified
the rules for broadband PCS.  The Broadband PCS Reconsideration
Order retained certain limitations on the amount of PCS spectrum
that can be obtained in any geographic service area.  Generally,
an entity may acquire attributable interests in a maximum of 40
MHz of licensed broadband PCS spectrum.  Parties with
attributable cellular interests, however, may obtain only 10 MHz
of licensed broadband PCS spectrum if the population in the
cellular service area overlaps 10 percent of the population in
the relevant PCS market.  After January 1, 2000, however,
entities with attributable cellular interests  may acquire an
additional five MHz of broadband PCS spectrum, for a total of 15
MHz of PCS spectrum in their cellular service areas.  The Order
also specified certain interests that the FCC would consider
attributable interests in order to determine the maximum amount
of PCS spectrum for which an entity may be licensed.

     In this proceeding, the Commission will consider whether 
certain additional non-equity relationships should be
attributable interests for purposes of applying particular PCS
eligibility rules or a more general CMRS spectrum cap.

     Commenters are asked to address whether there are
relationships, not included in the PCS attribution rules, that do
not rise to the level of control, but nonetheless should be
considered attributable because these interests may affect the
incentive or ability of PCS and other CMRS licensees to compete
vigorously in the marketplace. 

                                  (over)


                                    -2-
     
     Specifically, the Commission solicited comments on whether
management agreements or similar arrangements that do not  confer
de facto control on a party other than the licensee should be
considered attributable interests.  In this regard, the
Commission expressed concern that a management agreement may
permit the manager access to market sensitive information, such
as business plans, customer lists, product and service
development, marketing strategies.  If the manager is also a
licensee offering a competing service, access to such information
might enable it to impede vigorous competition.

     Action by the Commission July 18, 1994, by Second Further
Notice of Proposed Rulemaking (FCC 94-191).  Chairman Hundt,
Commissioners Quello, Barrett, Ness, and Chong. 

                                   -FCC-

     News Media contact: Patricia A. Chew at (202) 418-0500.
     Office of Plans and Policy contact: Greg Rosston at (202)
418-2030.
     Common Carrier Bureau contact: Leila Brown at (202) 418-
1300.