Report No. DC-             ACTION IN DOCKET CASE              June xx, 1995


          COMMISSION PROPOSES NEW RULES TO ESTABLISH A VERY SHORT
                   DISTANCE TWO-WAY VOICE RADIO SERVICE
                          (WT DOCKET NO. 95-102)

     By amending the Personal Radio Services rules, the
Commission has proposed to establish a very short distance,
unlicensed, two-way voice radio service in the Ultra High
Frequency (UHF) portion of the radio spectrum.  The Commission
said the proposed rules will encourage rapid deployment and
growth of inexpensive low power communications equipment for use
by groups in which members need to communicate over short
distances.

     This proceeding was initiated by the Radio Shack Division of
Tandy Corporation.  Tandy cited a burgeoning public demand for an
affordable and convenient means of direct, short-range, two-way
voice communication among small groups of persons, and asked the
Commission to authorized 14 UHF channels for a new service which
it calls Family Radio Service (FRS).  Tandy stated that it would
share seven General Mobile Radio Service (GMRS) channels that are
not used for repeater operation, as well as utilize seven
channels that are located between certain GMRS channels.

     Tandy identified a need by small groups of persons such as
families for good quality voice radio communication service
having a very short range.  The group members would use palm size
radio units to communicate while on outings, such as visiting
shopping malls and amusement parks, attending sporting events,
camping, and taking part in other recreational activities.  Tandy
stated that many persons could benefit from a such a service,
particularly for personal security, due to the low cost of the
units and the communication capability.

     In a related issue regarding interconnection with the public
switched network (PSN), the Commission would not to allow
interconnection between FRS stations and the PSN.  The Commission
stated that it wanted to ensure that the unique niche envisioned
for this proposed low power Family Radio Service not be
comprised.  However, comments are requested regarding whether
interconnection with the PSN should be permitted and, if so, any
restrictions or conditions that should be imposed.

                                  -more-

                                    -2-

     The Commission agreed that selective calling would enhance
the appeal of the FRS by allowing users to answer calls addressed
to them without having to also monitor all other communications
on the channel.  The proposed rules, therefore, allow a supplier
the option to provide such a capability if it desires.  Comments
advocating rules mandating a Commission-specified interoperable
selective calling standard should provide proposed technical
standards suitable for inclusion in the rules.

     Action by the Commission June 22, 1995, by Notice of
Proposed Rulamaking (FCC 95-261).  Chairman Hundt, Commissioners
Quello, Barrett, Ness, and Chong.

                                   -FCC-

     News Media contact: Patricia A. Chew at (202) 418-0500.
     Wireless Telecommunications Bureau contact: William T. Cross
at (202) 418-0691.