NEWS                                                                       
Report WT 97-14      WIRELESS TELECOMMUNICATIONS ACTION      March 25, 1997

         COMMERCIAL MOBILE RADIO SERVICES 2ND COMPETITION REPORT 

     The FCC has adopted its Second Annual Report and Analysis of Competitive Market
Conditions in the Commercial Mobile Radio Services (CMRS) industry.  The FCC's examination
of the CMRS industry indicates that competition in the mobile marketplace is emerging.  There
have been a significant number of changes in the CMRS market since this Commission submitted
its First Report to Congress. 

     The Commission has completed auctions for and issued over 1,500 new CMRS licenses
since the First Report, and anticipates continuing to issue additional CMRS licenses at a rapid
rate.  These new licensees have started to enter the marketplace, and even more new licensees
are expected to begin operations during the coming year.  In addition, CMRS subscribership
grew 30 percent, cumulative capital investment grew by 35 percent, and wireless industry em-
ployment grew approximately 24 percent, between December 1995 and December 1996.

     The most significant entry during the past year has been in Personal Communications
Services (PCS).  Broadband PCS systems have been placed in operation in 29 Major Trading
Areas.  Most broadband PCS licensees appear to be expeditiously constructing and placing their
systems in operation.  There are now eight major cities (Des Moines, Honolulu, Jacksonville,
Milwaukee, Oklahoma City, Portland, Salt Lake City, and San Diego) with two PCS licensees
in operation.  Although there has not been any significant reduction in per minute airtime charg-
es by the incumbent cellular service providers since the licensing of PCS began, there has been
a noticeable increase in the number of lower-priced service packages and alternative service op-
tions and features such as paging, voice-mail, first-minute of incoming calls free, and caller ID. 

     Furthermore, the imminent availability of PCS in many markets appears to be accelerating
the conversion of cellular systems from analog to digital technology, a change that will facilitate
the offering of a broader array of wireless services by cellular licensees and that will help ensure
the privacy of cellular calls. 

     The Commission has adopted a number of measures during the last year to enhance com-
petition and expedite the deployment of CMRS, such as the new partitioning and disaggregation
rules.  These initiatives are expected to reduce the regulatory burdens on the present wireless
communications industry and to facilitate and promote the provision of a wider array of services
of improved quality and greater quantity, and at lower prices.



     Action by the Commission March 6, 1997, by Report  (FCC 97-75).   Chairman Hundt,
Commissioners Quello, Chong, and Ness. 


                                   -FCC-

     News Media contact:  Audrey Spivack at (202) 418-0654
     Wireless Telecommunications Bureau: Dr. Joseph Levin, Dr. Pamela Megna, and Jane
Phillips at (202) 418-1310