NEWSReport No. DC 96-11            ACTION IN DOCKET CASE         February 8, 1996

             FCC PROPOSES CONSOLIDATION OF COMMON CARRIER AND 
             PRIVATE CARRIER PAGING SERVICES TO PROMOTE GROWTH
                         AND STREAMLINE REGULATION
                (WT Docket No. 96-18, PP Docket No. 93-253)
                                     
     The Federal Communications Commission today adopted a Notice of Proposed
Rulemaking (Notice), which initiates changes to the regulation and licensing of the paging
industry.  These changes are designed to promote continued growth and preserve vigorous paging
competition.  The main issues addressed in the Notice are:  (1) whether to adopt geographic
licensing for paging services to replace the site-by-site licensing currently used; (2) what type of
competitive bidding procedures should be implemented to resolve mutually exclusive paging
licenses; and (3) what type of licensing procedures will be in effect during the pendency of this
rulemaking.

     The Commission is proposing to convert to geographic area licensing for paging channels
regulated under Parts 22 and 90 of the Commission's rules, except for channels that have already
been licensed on a nationwide exclusive basis.  The Notice seeks comment on whether private
carrier paging channels currently licensed on a non-exclusive basis should be converted to
exclusive geographic area licenses.  The Notice also seeks comment on the appropriate size of
geographic service areas, the appropriate level of protection for incumbent paging systems
previously licensed on a site-specific basis, whether minimum coverage requirements should be
imposed, and whether channel aggregation limits should be adopted.  The Notice tentatively
concludes that incumbent licensees that do not ultimately become geographic area licensees may
continue operating under existing authorizations.  

     The Commission proposes to adopt competitive bidding procedures to resolve mutually
exclusive applications.  The Notice seeks comment on the competitive bidding method most
appropriate for paging services, and on the type of designated entity rules that should be
incorporated into these competitive bidding procedures.     

     The Commission is also proposing interim licensing procedures to be used during the
pendency of this rulemaking.  These interim licensing procedures include the following:

    The Commission is suspending acceptance of new applications for paging channels as of
     the adoption date of this Notice.  However, incumbent licensees may add sites to existing
     systems or modify existing sites without prior Commission approval or notification, 

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     provided that such additions or modifications do not expand the interference contour of
     the incumbent's existing system.  Additionally, the Notice seeks comment on whether
     incumbents should be allowed to file new applications that would expand or modify their
     existing systems beyond their existing interference contours with such new sites receiving
     only secondary authorizations.  

    The Commission will process under its current rules non-mutually exclusive applications
     that were filed as of the adoption date of this Notice for which the relevant period for
     filing competing applications has expired as of the adoption date of this Notice.  

    The Commission will not process, but will hold in abeyance until the conclusion of this
     proceeding, mutually exclusive pending applications.    

    As a result of the Commission's intent to implement new paging rules, it will postpone
     consideration of requests for conditional and permanent exclusivity in the 929 MHz band
     that are pending before the Commission.  

    Common carrier and private carrier paging licensees who have obtained nationwide
     exclusivity on a paging channel may file applications for additional sites without
     restrictions, as no other applicant may apply for such channels and such additions will not
     affect the spectrum availability to others.
     
     Comments on this Notice are due March 18, 1996, with reply comments due April 2,
1996; comments on the proposed interim rules are due March 1, 1996, with reply comments due
March 11, 1996.

     Action by the Commission February 8, 1996 by Notice of Proposed Rulemaking (FCC
96-51). Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong with Commissioners
Ness and Chong issuing separate statements.

     News Media Contact:  Kara Palamaras at (202) 418-0654.
     Wireless Telecommunications Bureau contact:  Mika Savir or Rhonda Lien at (202) 418-
0620.