Report No. DC-2593     ACTION IN DOCKET CASE                 April 20, 1994

           COMMENTS SOUGHT ON FURTHER REGULATORY FORBEARANCE 
                        FOR SMALL CMRS PROVIDERS 
                            (GEN DOCKET 94-33)

     The Commission has asked for comments on whether and how to
forbear further from applying certain common carrier regulations to
specific types of commercial mobile radio service (CMRS) providers.

          In the Second Report and Order in GEN Docket 93-252, the
Commission classified all mobile radio services as either
commercial mobile radio service (CMRS) or private mobile radio
service (PMRS) and determined, pursuant to the Omnibus Budget
Reconciliation Act of 1993 (Budget Act), to forbear from applying
the most burdensome sections of Title II of the Communications Act
to any service classified as CMRS.  At that time, the Commission
determined that it would not forbear regulation under  the
remaining sections of Title II with respect to CMRS providers. The
Commission determined  that this decision would not place an undue
burden on any CMRS provider or class of providers. At that time,
however, the Commission also announced that it would conduct a
further rulemaking that would gather a more extensive record to
ensure that the potential effect of the remaining sections of Title
II on particular types of CMRS providers within each class of
service was nevertheless in the public interest.  

     Forbearance is a decision by the Commission not to apply
certain regulatory obligations in particular cases.  The Budget Act
allows the Commission to decide to forbear from application of
certain sections of Title II in cases where (1) enforcement is not
necessary to ensure just, reasonable and nondiscriminatory rates,
(2) enforcement of the provision is not necessary to protect
consumers, and (3) forbearance is consistent with the public
interest.  Pursuant to the statute, the Commission may not forbear
from those sections of Title II requiring just and reasonable rates
and nondiscriminatory practices and those associated with the
complaint remedy.



                                  (over)


                                   - 2 -

     The Commission's initial forbearance substantially reduced the
potential burden of complying with new CMRS regulation.  In today's
action, the Commission begins a proceeding to ensure that this
decision has its intended effect. The Commission seeks comment on
how the three-part statutory test for forbearance applies to those
provisions of Title II, many of which are consumer-oriented, that
continue to apply to CMRS. In connection with the third prong of
the statutory test,-- that forbearance from application of a
provision is in the public interest,-- the Commission tentatively
identified two factors that would guide its public interest
determination:  The first is whether there are differential costs
of complying with the remaining common carrier provisions that
would make further forbearance appropriate for particular types of
providers, such as, for example small entities.  The second is
whether the public interest benefits from application of particular
provisions are less for certain types of providers. 
 
     In determining the particular types of CMRS providers that may
be appropriate for further forbearance, the Commission focussed on
small business entities because, if the costs of compliance with
the remaining provisions of Title II are fixed, the additional
regulation could prove disproportionately burdensome to small
business. It also asked whether further forbearance could increase
market participation by small businesses, thereby increasing the
over-all level of competition in the CMRS market.  

     Recognizing the public interest in maintaining opportunities
for small businesses and the role that further forbearance might
play in reducing the cost of doing business for them, the
Commission focused on the size of the provider as the basis for
examining when it might be appropriate to subject certain classes
of CMRS providers to further forbearance.  It asked for comments on
how to measure the size of CMRS providers, advancing several
options.  These options include examining the net worth, average
annual revenues, or average number of subscribers for particular
providers; considering various operational characteristics, such as
number of authorized channels, as indications of size for CMRS
providers licensed under Part 90 of the rules; or handling further
forbearance on a case-by-case basis, with particular CMRS providers
petitioning for further forbearance based on a showing that they
have satisfied the statutory test for forbearance.

     Action by the Commission April 20, 1994, by Notice of Proposed
Rulemaking (FCC 94-101).  Chairman Hundt, Commissioners Quello and
Barrett.
                                  - FCC -
     
     News Media contact: Rosemary Kimball at (202) 632-5050.
     Private Radio Bureau contacts: Gina Harrison at (202) 632-7125
and Susan McNeil at (202) 634-2443.
     Common Carrier Bureau contact: Peter Batacan at (202) 632-
6917.