NEWSReport No. DC 96-53    ACTION IN DOCKET CASE              June 12, 1996

             FCC ADOPTS INTERIM RULES GOVERNING THE RESALE 
               OBLIGATIONS OF CELLULAR, BROADBAND PCS AND 
                         WIDE-AREA SMR PROVIDERS
                          (CC Docket No. 94-54)
                                    
                In a move to facilitate the growth of wireless telecommunications services and
stimulate competition among providers of cellular, broadband personal communications (PCS)
and covered specialized mobile radio (SMR) services, the Commission acted today to prohibit
them from unreasonably restricting the resale of their services.  "Covered" SMR service
providers are those licensees in the 800 MHz and 900 MHz bands providing real time, two-
way switched, interconnected voice service.  The Commission voted to make compliance with
this "resale rule" a condition of license for all such providers. 

                The Commission decided not to extend the resale rule to commercial mobile radio
service (CMRS) providers other than cellular, broadband PCS and covered SMR providers.
The Commission based this decision in principal part on its conclusion that, in the immediate
future, only cellular, broadband PCS and covered SMR licensees will compete for customers
in the mass market for two-way switched voice services.  Record evidence also suggests that
resale is an established practice with regard to most other CMRS licensees, and competition
appears to be vigorous.  The Commission also decided to "sunset" the condition for cellular,
broadband PCS and wide-area SMR licensees, effective five years after concluding its initial
round of licensing currently-allocated broadband PCS spectrum.  The Commission expects
that the availability of numerous facility-based suppliers of wireless services will make the
condition unnecessary at that time.  

                Under the FCC's current rules, cellular licensees may not unreasonably restrict or
disallow the resale of their services or unreasonably discriminate against resellers.  The
Commission determined today that extending this rule to broadband PCS and wide-area
covered SMR providers will benefit consumers by promoting competitive pricing and making
it difficult for carriers to engage in unreasonable price discrimination.  The Commission also
concluded that the availability of resale will help jump-start competition by allowing new
entrants to enter the wireless marketplace quickly by reselling the services of their
competitors while they build out their own facilities. 

                Finally, the Commission eliminated an exception to its existing cellular resale rule that
permits a cellular licensee to restrict the sale of its services by the other cellular licensee in
the same geographic area after expiration of the five-year period that the other licensee is
granted to "build out" its system under the Commission's rules.  The Commission adopted this
exception in 1992 after concluding that it would promote competition by encouraging
facilities-based carriers to build out their systems.  The Commission decided today that the
exception is unnecessary because most cellular build-out periods ended several years ago, and
because the use of auctions as a licensing mechanism, and the interim nature of the resale
rules adopted today, will adequately curtail "free rider" incentives.
 
                Action by the Commission June 12, 1996 by Report and Order (FCC 96-263). 
Chairman Hundt, Commissioners Quello, Ness, and Chong, with Commissioner Chong issuing
a separate statement.

                                   -FCC-

                News Media contact:  Kara Palamaras at (202) 418-0654.
                Wireless Telecommunications Bureau contact:  Jeff Steinberg at (202) 418-0896.