NEWSReport No. DC 96-23                ACTION IN DOCKET CASE              March 20, 1996
     
             FCC PROPOSES RULES FOR AUCTIONING THE REMAINING 
                         BROADBAND PCS LICENSES
                    (WT DOCKET 96-59, GN DOCKET 90-314)

     The Federal Communications Commission today proposed changes to its Broadband
Personal Communications Services ("PCS") rules in an effort to move forward with
competitive bidding for the remaining PCS spectrum.

     Specifically, the Notice of Proposed Rule Making, adopted today, proposes
modifications of the competitive bidding rules for the 10 MHz D, E, and F frequency blocks. 
The Commission proposes to auction the D, E, and F blocks concurrently.  The Commission
also addresses the Sixth Circuit Court of Appeals' remand of rules limiting cellular
operators' ownership of PCS licenses.  

     Among the matters the Commission is seeking comment on are the following:

þ    A tentative conclusion that the F block race-based provisions require more supporting
     evidence, and that the present record may also be insufficient to support the F block
     gender-based provisions.

þ    A request for statistical and anecdotal evidence to develop a record to support the F
     block gender- and race-based provisions and a proposal to modify the F block rules to
     make them race- and gender-neutral to avoid the risk of litigation and proceed with
     the expeditious award of the F block licenses.

þ    A tentative conclusion that the D, E, and F block licenses should be auctioned
     concurrently.

þ    Proposals to modify other broadband PCS provisions, including: the definition of
     small business; the definition of rural telephone company; whether installment
     payment plans should be extended to the D and E blocks; and, modification of the
     holding requirement on licenses won by entities that qualify as entrepreneurs or
     designated entities.

þ    Whether the Commission should relax and simplify the cellular/PCS cross-ownership
     limitations.

                                  (over) 

                                   - 2 -

     Comments are due April 15 and replies April 25.

     Action by the Commission March 20, 1996 by Notice of Proposed Rulemaking (FCC
96-119).  Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong with
Commissioner Barrett issuing a separate statement.

                                  - FCC -

     News Media contact: Kara Palamaras at (202) 418-0654.
     Wireless Telecommunications Bureau contact: Mark Bollinger at (202) 418-0660.