Report No. DC-2633 ACTION IN DOCKET CASE August 2, 1994 COMMISSION REVISES PART 22 OF THE RULES GOVERNING THE PUBLIC MOBILE SERVICES (CC DOCKETS 92-115, 94-46, 93-116) The FCC has revised Part 22 of its rules governing the Public Mobile Services (PMS), including public land mobile service, cellular radiotelephone service, air-ground radiotelephone service, and rural radiotelephone service. The Commission said these revisions will improve the organization and clarity of its rules by eliminating outdated provisions and unnecessary information collection requirements, streamlining and expediting licensing and processing procedures, and affording licensees greater flexibility in providing service to the public. The Commission said these changes will further its goals of stimulating economic growth and expanding access to mobile radio networks and services. The Report and Order adopted new rules to govern the processing of mutually exclusive 931 MHz applications. The new rules require applicants to specify the channel for which they seek authorization and provide that: 1) mutually exclusive initial applications will be processed in filing groups corresponding to their respective 30 day filing windows; 2) competitive bidding procedures will be used for filing groups comprised entirely of applications for initial authorizations; and, 3) modification applications will be granted on a first- come, first-served basis. The Commission stated that the term "application for initial authorization" includes any application for a new station, any application for an additional channel (with one exception) and any application that requests relocation of a transmitter more than 2 kilometers (1.2 miles) from all authorized transmitters of the applicant licensee on the requested channel. The new rules will be applied to applications pending at the time the rules become effective. Pending applicants will be allowed to file amendments to specify the channel for which they seek authorization. (over) -2- The Commission also adopted a new requirement that PMS stations must commence service to subscribers by the end of the construction period. The Commission stated that this additional requirement will discourage a licensee from obtaining an authorization, or even constructing facilities, but not using them to offer service to subscribers. The Commission believes that this new requirement will effectively discourage "warehousing" of channels. Additionally, the Commission eliminated traffic loading studies for applications requesting more than one channel for a new station, or one or more additional channels for an existing station in the paired spectrum designated for one-way or two-way mobile operation. This will allow carriers who wish to provide paging service to obtain only one channel at one time, regardless of whether the channels are designated exclusively for one-way paging or for one-and two-way mobile operations. For applications proposing a two-way mobile telephone service, such as improved mobile telephone service (but not a two-way paging service), the Commission will allow applicants to obtain two channels at one time as proposed. The Commission emphasized that, in either case, the carriers must receive the authorizations, construct the stations, provide service to subscribers, and notify the FCC of the commencement of that service before seeking additional channels in that area. The Commission also addressed issues concerning Basic Exchange Telephone Radio Systems (BETRS) in the Rural Radiotelephone Service. Specifically, the Commission added a rule to govern BETRS channel assignments. The Commission added safeguards to prevent BETRS from using the entire 454 MHz spectrum in urban or populated areas where there is presently substantial demand for paging and radiotelephone service. Under the new rule, the number of additional channels assigned to BETRS in the Rural Radiotelephone Service will be determined on a case-by-case basis, taking into account the grade of service required, the equipment utilized, the amount and type of service for which the demand is projected, the clustering of the customers locations, the terrain, and the potential for interference between systems. The Commission also added rules governing channel assignments based on the technical characteristics of BETRS equipment. The Commission believes the new rules will permit the assignment of an adequate number of channels for BETRS in rural areas while at the same time ensuring that sufficient 454 MHz public mobile spectrum remains available to meet present and future mobile service needs. -3- Finally, the Commission adopted rules that would reduce the fraudulent use of cellular equipment caused by tampering with the Electronic Serial Numbers (ESN) used to identify mobile equipment to cellular systems. The Commission concluded that the practice of altering cellular phones to "emulate" ESNs should not be allowed because 1) simultaneous use of cellular telephones emitting the same ESN could cause problems in some cellular systems such as erroneous tracking or billing; 2) use of such phones could deprive cellular carriers of monthly per telephone revenues to which they are entitled; and 3) such altered phones would most likely not be authorized by the carrier and thus would be unlicensed transmitters in violation of Section 301 of the Act. The new rules will prohibit any individual or company from knowingly performing alterations of cellular telephones to cause transmission of an ESN other than the one originally installed by the manufacturer. Action by the Commission August 2, 1994, by Report and Order (FCC 94-201). Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong. -FCC- News Media contacts: Patricia A. Chew and Susan Sallet at (202) 418-0500. Common Carrier Bureau contacts: Jay Jackson, R. Bart Gorman, or Geraldine A. Matise at (202) 418-1300.