Report No. DC 95-106       ACTION IN DOCKET CASE             August 7, 1995


         COMMISSION PROPOSES ELIMINATION OF ONE-YEAR CONSTRUCTION
                      REQUIREMENTS FOR IVDS LICENSEES
                          (WT DOCKET NO. 95-131)

     The FCC has proposed to amend the rules to eliminate the
one-year construction "build-out" requirement for Interactive
Video Data Service (IVDS) licensees.

     The IVDS service rules provide that licensees must make
service available to at least 10 percent of the population or
area within one year, 30 percent within three years, and 50
percent within five years.

     Certain IVDS auction winners have requested elimination of
the one-year construction benchmark.  The petitioners argued that
the IVDS equipment market is in early development and has yet to
provide sufficient quantities of suitable, competitively price
equipment.  They argued further that technological development
will be unnecessary curtailed if the industry is consigned to the
limited scope and application of the current equipment options.

     The Commission stated that the original construction
benchmark was crafted in the context of awarding licenses by
lottery and was intended to reduce speculation and spectrum
warehousing.  The Commission stated further that in light of its
experience with auctions, it no longer believes the 10 percent
requirement is necessary to achieve these objectives.

     Additionally, the Commission believes  that it is in the
public interest to provide licensees with greater flexibility in
making decisions concerning financing, equipment selection and
other considerations related to construction.  Because this
proposal would not alter the three-and-five-year benchmarks,
licensees would still be required to act responsibly in
delivering service to the public in a timely fashion.

     Comments are requested on the proposed rule change.



                                  (over)



                                    -2-

     Action by the Commission July 31, 1995, by Notice of
Proposed Rulemaking (FCC 95-318).  Chairman Hundt, Commissioners
Quello, Barrett, Ness, and Chong.

                                   -FCC-

     News Media contact: Patricia A. Chew at (202) 418-0500.
     Wireless Telecommunications Bureau contact: Donna L. Kanin
at (202) 418-0680.