NEWSReport No. DC 95-116   ACTION IN DOCKET CASE         September 14, 1995

      FCC ADOPTS FINAL AUCTION RULES FOR 900 MHZ SERVICE; ADDRESSES
           RECONSIDERATION PETITIONS CONCERNING SERVICE RULES
          (PR DOCKET 89-553, PP DOCKET 93-253, GN DOCKET 93-252)

     The Commission has adopted final auction rules for the 900 MHz Specialized Mobile
Radio (SMR) service and addressed reconsideration petitions concerning the service rules
previously adopted.  The Commission said that the new rules will ensure that the 900 MHz
SMR service is licensed in a fast, fair, and efficient manner, will promote competition to
provide high-quality service to consumers, and will enable the public to recover a portion of
the value of the spectrum.  The 900 MHz SMR service will offer specialized dispatch, two-
way paging, wireless data, and interconnected voice transmission.  The Commission noted
that the rules provide opportunities for new entrants, including small businesses, to
participate in the auctions and in the provision of services, while at the same time protecting
incumbent systems and providing them with a more flexible environment.  The auction will
begin on November 28, 1995.

     Today, the Commission:

     --  Determined that the 1,020 available licenses (20 ten-channel blocks in 51 MTAs)
will be auctioned in a simultaneous multiple round auction; 

     --  Adopted  a "tiered" system of bidding credits and installment payment plans for
eligible small businesses;

     --  Adopted partitioning rules for rural telephone companies. 

     On reconsideration, the Commission generally affirmed the service rules adopted for
MTA licensees and incumbents. 

          Action by the Commission September 14, 1995, by Second Order on
Reconsideration and Seventh Report and Order (FCC 95-395).  Chairman Hundt,
Commissioners Quello, Barrett, Ness, and Chong, with Commissioner Barrett issuing a
separate statement.
                                   -FCC-

     News Media contact: Patricia A. Chew at (202) 418-0500.
     Wireless Telecommunications Bureau contacts: Amy J. Zoslov or Diane M. Law at
(202) 418-0660.