NEWSReport No. DC 96-109     ACTION IN DOCKET CASE           
December 13, 1996

         FCC MODIFIES RULES TO PERMIT PARTITIONING AND
DISAGGREGATION 
                          BY BROADBAND PCS LICENSEES
                      (Docket Nos. WT 96-148; GN 96-113)

       The Federal Communications Commission (FCC) today adopted
rules to permit
geographic partitioning and spectrum disaggregation for all
broadband Personal
Communications Service (PCS) licensees.  This rule change will
give existing PCS licensees
and potential new entrants greater flexibility to determine how
much spectrum they need and
the geographic areas in which they will provide service.  This
added flexibility will encourage
more efficient use of PCS spectrum and possibly new technology
uses or niche services for
these bands.  The new rules will also implement Congress' goal of
providing small businesses
the opportunity to participate in the provision of spectrum-based
services, by eliminating
barriers to entry for small businesses seeking to enter the PCS
marketplace.
                                       
       Today's Order modifies the broadband PCS rules as follows:

               Broadband PCS licensees in the A, B, D, and E
blocks may partition their   
       license areas and/or disaggregate their spectrum blocks at
any time to entities that
       meet minimum eligibility requirements (e.g., foreign
ownership limits under Section
       310(b) of the Communications Act).  

               Entrepreneurs' block (C and F block) PCS licensees
may partition and/or    
       disaggregate their licenses at any time to other entities
qualified as entrepreneurs. 
       During the first five years of their license term,
entrepreneurs' block licensees may not
       partition or disaggregate to non-entrepreneurs.  After the
first five years, entrepreneurs'
       block licensees may partition or disaggregate to
non-entrepreneurs, provided they
       repay a proportional share of the outstanding balance on
their installment payments
       and a proportional share of any bidding credits they have
received. 

               Partitioning of PCS licenses is permitted in any
service area defined by the      
       parties.  Disaggregation is allowed for any amount of
spectrum, and the    
       disaggregator will not be required to retain a minimum
amount of spectrum. 
                                       
               Where an entrepreneurs' block licensee partitions
or disaggregates to another
       entrepreneur, separate installment payments and default
obligations are established for
       each licensee. 

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               Partitionees and disaggregatees may hold their
license for the remainder of the
       original license term and will be granted renewal
expectancy similar to other PCS
       licensees.

               Partitioned license areas will be subject to
buildout requirements similar to
       those for the original PCS licensees, but the requirements
may be met by either or
       both licensees under options available to the parties.  

               Partitionees and disaggregatees will have the same
rights and obligations as
       original PCS licensees under the FCC microwave relocation
rules, including rights and
       obligations established under the cost-sharing plan.

       The Commission also adopted a Further Notice of Proposed
Rulemaking seeking
comment on whether to permit partitioning and disaggregation for
other wireless services
where such rules have not previously been proposed or adopted,
including disaggregation of
cellular spectrum (partitioning is already allowed) and
partitioning and disaggregation of the
General Wireless Communications Service spectrum. 

       Action by the Commission December 13, 1996, by Report &
Order and Further Notice
of Proposed Rulemaking (FCC 96-474). Chairman Hundt,
Commissioners Quello, Ness, and
Chong.

                                    - FCC -

News Media contact:   Kara Palamaras at (202) 418-0654. 
Wireless Telecommunications Bureau contact:   Shaun A. Maher at
(202) 418-0620.