Report No. CC95-12 COMMON CARRIER ACTION February 6, 1995 FCC REVERSES BUREAU ACTION; DISMISSES APPLICATIONS OF MOBILETEL, INC. FOR WIRELINE SERVICE IN TWO LOUISIANA MARKETS The Commission has reversed a decision by the Common Carrier Bureau's Mobile Services Division (MSD) and dismissed the applications of MobileTel, Inc., to construct and operate a cellular system on frequency Block B in the domestic public cellular radio telecommunications service to serve the Louisiana 8 and Louisiana 9 Rural Service Areas (RSAs). Petitions for reconsideration filed by BellSouth Mobility, Inc. (BMI) and Columbia Cellular,Inc. were also dismissed by the Commission in the Order. The Commission considered BMI's arguments aainst MobileTel on its own motion. MobileTel is a wholly-owned subsidiary of SJI, Inc. Lafourche Telephone Company, Inc., another wholly-owned subsidiary of SJI, is the state certified local exchange carrier authorized to provide basic switched telephone service in Lafourche Parish, LA, and in Jefferson Parish, LA. Neither Lafourche Parish nor Jefferson Parish is located in either the Louisiana 8 or Louisiana 9 RSAs. Lafourche is, however, certified by the Louisiana Public Service Commission to provide basic switched telephone service to these RSAs and has been doing so through the provision of Basic Exchange Telecommunications Radio Service (BETRS). The MSD ruled that MobileTel was eligible to apply for the wireline authorization in the Louisiana 8 and Louisiana 9 RSAs even though it only provided service to subscribers in those markets through BETRS. The MSD concluded that the intent of the Commission in establishing a wireline set aside would allow a wireline carrier which provides BETRS service to qualify for a wireline license. BMI argued that the provision of service through BETRS was insufficient to qualify MobileTel for a wireline authorization. Specifically, BMI argued that MobileTel was ineligible because BETRS is a radio service, not a landline service, pursuant to Section 22. 902(b) of the Commission's rules. (over) -2- The Commission said when it promulgated the rules initiating cellular service, it decided to license two cellular systems per service area, allocating one 20 MHz frequency block to wireline carriers and one to nonwireline carriers. Eligibility for the wireline allocation was limited to those telephone companies already providing wireline telephone service in a particular market. The Commission reasoned that by limiting the eligibility for one block of cellular service, fewer mutually exclusive applications would be filed, thereby promoting rapid initiation of service to the public. BETRS is indisputably a radio, not a "landline" (or "wireline") service. Accordingly, MobileTel is ineligible because it does not provide landline service in either the Louisiana 8 or Louisiana 9 RSAs. The Commission said that while it is true that Lafourche has been certificated by the Louisiana Public Service Commission to provide landline service in these markets, this is insufficient. To be eligible, a carrier must provide such landline service in the market. The fact that Lafourche provides wireline service in another market also would not make its affiliate, MobileTel, eligible to apply in the RSAs. Therefore, because Lafourche is not a landline service provider in the Louisiana 8 and Louisiana 9 markets, its affiliate MobileTel is ineligible to apply for the frequencies set aside for such entities. The Commission noted that because MobileTel has commenced service in these markets, it will grant MobileTel interim authority to continue operation until a qualified applicant is licensed and ready to begin service. Thus, new lotteries will be held to choose among the remaining applicants in these markets. Action by the Commission January 27, 1995, by Memorandum Opinion and Order (FCC 95-34). Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong. -FCC- News Media contact: Patricia A. Chew at (202) 418-0500. Common Carrier Bureau contact: Joseph Weber (202) 418-1310.