NEWSReport No. DC 96-58                      ACTION IN DOCKET CASE                June 24, 1996

FCC MODIFIES RULES FOR AUCTIONING THE D, E & F BLOCK
               BROADBAND PCS LICENSES
Single Auction for All Three Blocks To Begin August 26 
(Docket WT 96-59) 

       The Federal Communications Commission today amends its Personal Communications
Service ("PCS") rules in anticipation of auctioning the remaining broadband PCS spectrum. 
The Commission intends to auction the 10 MHz D, E, and F blocks in a single simultaneous
multiple round auction beginning on August 26, 1996.

       By today's action, the Commission modifies its F block competitive bidding rules, in
response to the Supreme Court's decision in Adarand Constructors, v. Pe¤a, to eliminate race-
and gender-based provisions.  The Commission's modifications include:

       - Extension of the 50.1/49.9 percent "control group" equity structure option to all F     
block applicants.

       - Elimination of the exception to the F block affiliation rules that excludes the gross   
revenues and total assets of affiliates controlled by minority investors who are members of an
applicant's control group in determining small business eligibility.

       - Revision of installment payment plans for which F block licenses are eligible to        
provide for three plans based solely on the applicant's financial size. 

       - Elimination of gender- and race-based bidding credits and provision of tiered    
bidding credits for small businesses.

       In addition, the Commission makes other modifications to the D, E, and F block rules
to encourage sincere bidding and minimize the likelihood of default.  Such modifications
include:

       - An increased upfront payment requirement of $0.06 per MHz-pop for the D, E, and  
F blocks.

       - An increased down payment requirement for the F block licenses of 20 percent of  
the winning bid.

                                   - more -

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       - Reduction of the interest-only period for the most favorable F block installment
payment plan from six years to two years.

       The Commission also amends its rules governing cellular operators' ownership of
broadband PCS licenses in response to the remand from the Sixth Circuit Court of Appeals in
Cincinnati Bell Telephone Co. v. FCC.   More specifically, the Report and Order eliminates
the cellular/PCS cross-ownership rule and the 40 MHz PCS spectrum cap in favor of a single
45 MHz cap on commercial mobile radio spectrum.

       Action by the Commission June 21, 1996 by Report and Order (FCC 96-278). 
Chairman Hundt, Commissioner Quello, Ness and Chong.

                                     -FCC-

       News Media contact: Kara Palamaras at (202) 418-0654.
       Wireless Telecommunications Bureau contact: Mark Bollinger at (202) 418-0660.