Report No. DC 95-105                                            ACTION IN DOCKET CASE              July 28, 1995
     
                                      COMMISSION PROPOSES PLAN TO ROLL OUT WIRELESS SERVICES
     (PR Docket No. 89-52, GN Docket No. 93-252
     PR Docket No. 93-253)
     
              As part of its ongoing effort to license expeditiously a wide range of wireless
     telecommunications services, the FCC today announced a plan to reduce burdens and
     to enhance the competitive potential for 220 MHz services. The 220 MHz service has
     the capability to provide a variety of communications services including two-way data
     transmission, paging, and traditional dispatch services.
     
              Today's action by the FCC will speed licensing and enable 220 MHz licensees
     to keep up with consumer demand for these new and evolving services. The FCC's
     proposals are intended to promote the continued development of the 220 MHz service
     and to enable licensees to implement new communications services to meet the future
     needs of the American public.
     
              The Commission proposed to permit 220 MHz licensees to offer not only
     mobile services, but fixed wireless services as well, such as data transmissions among
     automatic teller machines. The Commission also proposed to allow 220 MHz
     licensees to offer paging services. 
     
              For future licensees in the 220 MHz band, the Commission proposed to:
     
       þAssign 60 channels in 172 ``Economic Areas'' as defined by the Bureau of         
        Economic Analysis in the Department of Commerce
       þAssign 65 channels in areas defined by five ``220 MHz Regions'' 
       þAllow all applicants, both private and commercial, to apply for these channels
       þAssign the channels through competitive bidding
       þProvide 10 year license terms and require licensees to meet five- and 10-year       
        construction benchmarks
       þEliminate channel use restrictions, such as ``data only'' and ``non-trunked''
     
     
                                    - more -
     
     
                                      - 2 -
          For licensing nationwide channels, the Commission sought comment on three
     alternative methods of disposing of 33 pending Phase I applications for nationwide,
     non-commercial channels:
     
       þReturn the applications without prejudice, and auction nationwide licenses under 
        competitive bidding rules proposed in today's Notice.
       þConduct a lottery to award the four available nationwide channels.
       þGrant authorizations among the 33 applicants through comparative hearings.
     
     The Commission proposed the following framework for nationwide licensing:
     
       þLicense 30 channels on a nationwide basis to all applicants -- i.e., applicants that   
        intend to use the channels to offer commercial services as well as applicants that    
        intend to use the channels for their private, internal use.
       þAssign these 30 channels in the form of three 10-channel authorizations.
       þAssign these three authorizations through competitive bidding.    
       þAssign nationwide licenses for a 10-year term and require nationwide licensees to
        meet five- and 10-year construction benchmarks.
     
          The Commission also sought comment on the issue of whether the framework
     of allocation, licensing, and operational rules for nationwide licenses should apply to
     the 33 pending applications if those applications are awarded pursuant to lotteries or
     comparative hearings. For example, the Commission asked commenters to address
     whether licenses granted under either of these two options should continue to be
     governed by current rules, with the authorizations awarded for non-commercial use
     only, or whether licensees obtaining these authorizations should be permitted to
     operate under the rules proposed for nationwide licensing.
     
          The FCC also sought comment on how to treat pending, mutually exclusive
     applications for non-nationwide 220 MHz licenses. 
     
          The Commission tentatively concluded that the principal use of the Phase II
     spectrum, with the exception of the channels reserved for the Public Safety Radio
     Service and Emergency Medical Radio Service, is likely to be for subscriber-based
     services for compensation. Therefore, mutually exclusive applications for these
     channels should be assigned by competitive bidding. The FCC proposed simultaneous
     multiple round auctions. In addition, this proposal contains special provisions for
     designated entities (which are defined by the statute as small businesses, women,
     minorities, and rural telephone companies), with small business eligibility depending
     on size.
     
          Action by the Commission July 28, 1995, by Second MO&O and Third
     NPRM (FCC 95-312).  Chairman Hundt, Commissioner Quello, Barrett, Ness and
     Chong.
       -FCC-
                                        
     News Media contact:  Stacey Reuben Mesa at (202) 418-0654
     Wireless Telecommunications Bureau contacts:  Martin Liebman at (202) 418-1310 or
     Rhonda Lien at (202) 418-1300.