FOR IMMEDIATE RELEASE NEWS MEDIA CONTACT: May 14, 1999 Meribeth McCarrick at (202) 418-0654 FCC ADOPTS ORDER ON RECONSIDERATION AND THIRD REPORT AND ORDER ON PAGING RULES Rules Bring FCC Closer to Paging Auctions The Federal Communications Commission yesterday adopted a Memorandum Opinion and Order on Reconsideration (Order on Reconsideration) and Third Report and Order affirming the Commission's commitment to establishing rules for the paging services that will streamline the licensing process, foster competition, and promote the delivery of service to all areas of the country, including rural areas. The adoption of this item paves the way for auctions of paging licenses starting later this year, which will complete the transition from site-by-site licensing to geographic area licensing in the paging services. The Commission anticipates a series of auctions to assign a total of more than 16,000 licenses in both the "upper bands" (929-930 MHz and 931- 932 MHz) and "lower bands" (35-36 MHz, 43-44 MHz, 152-159 MHz, 454-460 MHz) of the paging services. In yesterday's Order on Reconsideration, the Commission, among other things, affirmed its prior decision to dismiss all mutually exclusive paging applications and all paging applications filed after July 31, 1996, and decided to use Major Economic Areas (MEAs), instead of Major Trading Areas, for geographic area licensing of the upper bands. The item also affirmed the use of Economic Areas (EAs), which are the constituent units of MEAs, as the geographic areas for licensing in the lower paging bands. The Commission declined to limit eligibility for paging auctions to incumbent licensees or to exempt incumbents from having to participate in auctions to secure spectrum. The Commission also affirmed its decision to provide full interference protection to existing Basic Exchange Telecommunications Radio Services (BETRS) licensees and to allow BETRS licensees to obtain additional site-specific licenses on a secondary basis, and denied BETRS operators an exemption from competitive bidding. In the Third Report and Order, the Commission adopted rules including establishing that nationwide geographic area paging licensees may partition their service areas and that nationwide, MEA, and EA licensees may disaggregate their spectrum. Partitioning is the assignment of a license for a portion of a geographic area by the original geographic area licensee to another eligible entity. Disaggregation is the assignment of a license for a discrete portion, or "block," of spectrum by the original licensee to another eligible entity. The Commission also adopted population coverage requirements for parties to partitioning and disaggregation agreements involving MEA and EA licenses. The Commission deferred any decision on whether to impose minimum coverage requirements on licensees holding nationwide geographic area licenses until similar issues raised in the pending Narrowband PCS proceeding are resolved. Soon after release of this item the Commission's Wireless Telecommunications Bureau will release a Public Notice seeking comment on items such as auction activity rules, upfront payments, and minimum opening bids. As with any auction the public can monitor auction releases and results at no charge via the Commission's auction homepage at: www.fcc.gov/wtb/auctions. Action by the Commission, May 13, 1999, by Memorandum Opinion and Order on Reconsideration and Third Report and Order (FCC 99-98). Chairman Kennard, Commissioners Ness, Furchtgott-Roth, Powell and Tristani. News Media contact: Meribeth McCarrick at 202-418-0654; TTY at (202) 418-7233 Wireless Telecommunications Bureau contacts: Sam Gumbert (Engineering-Commercial Wireless Division) at 418-1385; Cyndi Thomas or Todd Slamowitz (Legal-Commercial Wireless Division) at (202) 418-7240, or by e-mail, to cythomas@fcc.gov or tslamowi@fcc.gov; or Anne Napoli (Auctions and Industry Analysis Division) at 418-0653, or by e-mail to anapoli@fcc.gov; TTY at (202) 418-7233. WT Report No. 99-15 WT Docket No. 96-18, PR Docket No. 93-25 -FCC-