WIRELESS TELECOMMUNICATIONS BUREAU FISCAL YEAR 1995-1996 PROGRESS REPORT This Progress Report summarizes the major accomplishments and initiatives of the Federal Communications Commission's Wireless Telecommunications Bureau (WTB) during the past fiscal year (October 1, 1995 - September 30, 1996). These accomplishments reflect the Bureau's efforts to achieve three primary objectives: (1) Promoting economic growth and competition, (2) Ensuring that all Americans share the benefits of increased growth and competition, and (3) Implementing efficient processes to carry out these goals. (1) PROMOTING ECONOMIC GROWTH AND COMPETITION Interconnection: The Commission adopted a Notice of Proposed Rule Making (NPRM) on interconnection on December 15, 1995, and released it on January 11, 1996. On August 8, 1996, the Commission adopted an Order which required that local exchange carriers ("LECs") offer interconnection to CMRS providers on reasonable terms and conditions, in order to foster the emergence of competition between wireless service providers and LECs. Paging: The Commission adopted a Notice of Proposed Rule Making (NPRM) on February 8, 1996, that proposes consolidation of common carrier and private carrier paging services to promote growth and streamline regulation. On April 24, the Commission released a First Report & Order partially lifting the paging freeze for incumbent licensees. On June 11, the Commission released an Order on Reconsideration of First Report and Order, modifying the interim paging licensing rules. Wireless Safeguards: WTB released an Order on February 27, 1996, approving a safeguards plan submitted by PacTel in connection with its broadband PCS offerings. The Commission adopted a NPRM, Order on Remand and Waiver Order on July 25, 1996 that initiated a comprehensive review of its structural and nonstructural safeguards for local exchange carrier (LEC) provision of commercial mobile radio services (CMRS). Telecommunications Act of 1996 Deregulation: Microwave Consolidation: The Commission adopted a Report & Order on February 8, 1996, that consolidated its rules governing common carrier and private operations fixed microwave services into a new Part 101. Amateur Service Rules: The Commission adopted an Order on February 28, 1996 amending Part 97 of the Commission's rules to conform the amateur service rules to the provisions of the Telecommunications Act of 1996. The Order eliminated a filing requirement imposed on volunteer examiners and coordinators who administer amateur operator examinations. CMRS Licenses: The Commission adopted an Order on March 21, 1996 eliminating equal access obligations pertaining to CMRS licensees, in conformance with the Telecommunications Act of 1996. Domestic Ship and Aircraft Radios: The Commission adopted an NPRM on April 1, 1996 proposing to revise the rules for maritime and aviation services in order to remove individual radio licensing requirements on recreational vessel and aircraft operated domestically. The proposal would remove the burden of filing applications and associated fees from hundreds of thousands of recreational vessels and aircraft owners, as well as remove the administrative burdens associated with the Commission's processing of such applications. Automated Ship Distress & Safety System: The Commission adopted an Order on April 5, 1996 amending the Commission's rules to conform the Maritime Service Rules to the provisions of the Telecommunications Act of 1996. This Order eliminated the requirement for large cargo vessels and passenger vessels to carry a manual Morse code radiotelegraph installation so long as the vessels operate in accordance with the Global Maritime Distress and Safety System (GMDSS) provisions of the International Safety Convention. Microwave Relocation: On April 25, 1996, the Commission adopted a Report and Order and Further Notice of Proposed Rule Making in the Microwave Relocation proceeding that will promote the deployment of broadband Personal Communications Services (PCS). PCS D, E, and F Rules: On March 20, 1996, the Commission released a NPRM for the broadband PCS D, E and F Blocks. On June 21, 1996, the Commission adopted a Report and Order to modify the competitive bidding and ownership rules for PCS in the 2 GHz band. DBS Auction: On January 24-26, 1996, the Commission held an auction for two Direct Broadcast Satellite (DBS) licenses. MCI Telecommunications Inc. was the winner of the 110 degree license with a high bid of $682 million. Echostar DBS was the winner of the 148 degree license with a high bid of $52 million. MDS Auction: On March 28, 1996, the MDS auction closed, bringing 493 licenses to 154 new entrants (141 of which are small businesses). These licenses can be used to deliver video programming to subscribers through microwave transmitting and receiving antennas. 900 MHz SMR Auction: The 900 MHz Specialized Mobile Radio (SMR) auction closed on April 15, 1996, bringing 1,020 licenses to 80 new entrants (60 of which are small businesses). Licenses for this service may be used for dispatch and other sophisticated mobile data and voice services. C Block Auction: On May 6, 1996, the Broadband PCS C Block (Entrepreneurs Block) Auction closed, raising $10.2 billion to be deposited with the U.S. Treasury. This auction allowed 89 small businesses to win a total of 493 PCS licenses to compete in the marketplace. On May 15, 1996, two high bidders in the auction failed to make downpayments on their licenses. At this time, the Commission deemed these licenses in default. Less than two months later, the FCC conducted a reauction of the 18 defaulted licenses. This auction lasted only 8 days and brought in a total net revenue of $904.6 million, $30 million more than was generated for these licenses in the original auction. CMRS Resale: On June 12, 1996, the Commission adopted an Order prohibiting providers of cellular, broadband personal communications services and "covered" specialized mobile radio service from unreasonably restricting the resale of their services. CMRS Flexibility: On June 27, 1996, the FCC adopted rules to allow wireless communications providers, such as cellular, Personal Communications Services (PCS), and paging carriers, flexibility in determining the mix of mobile and fixed services that they will provide to the public. Roaming: On June 27, 1996, the Commission adopted a rule governing "manual" roaming to enable wireless customers to use their phones when they are traveling outside their home service areas. The Commission also adopted a Further Notice of Proposed Rule Making (NPRM) requesting comment as to whether it should adopt a rule requiring providers of these services to offer "automatic" roaming agreements on a nondiscriminatory basis to each other. Partitioning/Disaggregation: On July 15, 1996, the Commission released a Notice of Proposed Rule Making to implement Section 257 of the Communications Act of 1934, as amended by the Telecommunications Act of 1996, to eliminate entry barriers into the telecommunications market for small businesses. Specifically, the Notice of Proposed Rule Making proposes to revise the rules to permit geographic partitioning and spectrum disaggregation for broadband PCS. 28 GHz Frequency Band: On July 18, 1996, the Commission adopted a plan for the 28 GHz frequency band and released a Further Notice of Proposed Rule Making that opened the door for consumers to obtain a wide variety of new broadband, two-way interactive video and data services. These services will be provided by LMDS and satellite systems. Tower Siting: On April 23, 1996, WTB released a Fact Sheet ("New National Wireless Tower Siting Policies") explaining the provisions of the Telecommunications Act concerning placement of towers and other facilities for use in providing personal wireless services. In July 1996, WTB formed a Task Force addressing tower-siting issues under Section 704 of the Telecommunications Act of 1996. The Task Force is conducting outreach meetings with industry, state and local governments, and consumers. The Task Force also released Fact Sheet # 2 in September, 1996 with updated radio frequency emission information. IVDS: On September 10, 1996 the Commission released the Sixth Memorandum Opinion and Order and Further Notice of Proposed Rulemaking to affirm the competitive bidding rules set forth for Interactive Video and Data Service (IVDS) in the Fourth Report and Order, and to amend the rules to permit the use of simultaneous multiple round auctions. The Commission also clarified the anti-collusion and, for future IVDS auctions, decided to extend the bidding credits for designated entities to both licenses in each IVDS service area, rather than only half of the available licenses as previously provided. On November 30, 1995, the Commission adopted an Order addressing a variety of requests made by winning bidders from the July 28-29, 1994, IVDS auction. The Commission denied the requests, which concerned payment obligations following the "down payment" stage. On December 14, 1995, the Commission adopted a Report and Order to modify the IVDS "build-out" requirements. This action eliminated the one-year requirement, while retaining the three- and five-year requirements. 800 MHz Specialized Mobile Radio: On December 15, 1995, the Commission adopted a First Report and Order, Eighth Report and Order, and Second Further Notice of Proposed Rule Making ("First R&O") changing its 800 MHz SMR licensing rules for the upper 10 MHz block of contiguous spectrum to provide for (1) licensing of SMR channels on a geographic area rather than a site-specific basis, (2) reconfiguring of the SMR band to accommodate both wide-area SMR systems and local systems, and (3) use of auctions to select SMR licensees. These changes are intended to eliminate licensing bottlenecks in the service and enhance the ability of SMR licensees to compete with cellular and PCS licensees. The Commission also proposed similar changes to the rules for the lower 80 and General Category channels of the 800 MHz band, in order to reduce the administrative burden and benefit smaller businesses. Southwestern Bell Mobile Systems On October 23, 1995, WTB granted Southwestern Bell Mobile Systems (SBMS) a limited waiver of Section 22.903 to enable it to provide integrated cellular and "Competitive Landline Local Exchange"(CLLE) service outside of Southwestern Bell Telephone Company's local exchange service area. 900 MHz Specialized Mobile Radio: On October 20, 1995, the Commission, on its own motion, reconsidered the coverage requirements for the 900 MHz Specialized Mobile Radio ("SMR") service in the Third Order on Reconsideration. It also reconsidered the issue of renewal expectancies for 900 MHz SMR Major Trading Area ("MTA") licensees. First, the Commission clarified that 900 MHz MTA licensees cannot meet their coverage requirements through the use of resale agreements. Second, we amended the Part 90 rules to include a renewal expectancy for 900 MHz MTA licensees. (2) ENSURING THAT ALL AMERICANS SHARE THE BENEFITS OF INCREASED GROWTH AND COMPETITION Section 255: On September 19, 1996, the FCC took an important first step to provide access to telecommunications services and equipment to those with disabilities. It released a Notice of Inquiry (NOI) regarding Section 255 of the Telecommunications Act of 1996, which provides that telecommunications service providers and telecommunications equipment manufacturers must make their services and equipment accessible to those with disabilities, if readily achievable. Public Safety Wireless Advisory Committee: The Public Safety Wireless Advisory Committee was established in August 1995 by the FCC and NTIA to provide advice on the wireless communication needs of the public safety community through the year 2010. On September 16, 1996 the Public Safety Wireless Advisory Committee had its final meeting and submitted its final report with recommendation on public safety communications. On April 5, 1996, the Commission adopted a NPRM seeking to address the operational, technical and spectrum requirements for state and local public safety entities through the year 2010. Wireless Hearing Aid Compatibility: In January 1996, Chairman Reed Hundt opened a two-day summit in which the wireless industry, hearing aid manufactures, audiologists, and consumers discussed how to resolve wireless hearing aid compatibility and interference issues. On May 12, the participants released reports to the Chairman in which they indicated that they had reached consensus on several key issues. The Commission is assisting participants in their continuing efforts to reach consensus on the remaining issues. Emergency Medical Radio Service (EMS): On February 8, 1996, the Commission adopted an Order which created the Emergency Medical Radio Service as a new Private Radio Service. This service will be provided on clear narrowband channels for use solely by life support organizations. It will also enhance interoperability and will allow medical services, rescue organizations, disaster relief organizations, and beach patrols to communicate with each another. Temporary Telephone Service: In an Order released on April 17, 1996, WTB granted US West's request for waiver of provisions of Section 22.903 that would prohibit it from providing cellular service to customers in US West's local exchange area awaiting the installation of landline telephone service. Enhanced 911 (E-911): On June 12, 1996, the Commission adopted a Report and Order and Further Notice of Proposed Rulemaking that creates rules to govern the availability of basic 911 services and the implementation of E911 for wireless services. The Commission released the Order and Further Notice on July 26, 1996. For basic 911 services, the Order requires all cellular, broadband PCS, and certain SMR licensees to transmit all 911 calls made from mobile handsets that have a code identification to a Public Safety Answering Point (PSAP), without any blocking or validation procedures. The Order also requires these carriers to provide certain E911 features which enable the PSAP to identify the location of the caller, including Automatic Number Identification (ANI) and Automatic Location Identification (ALI), within the required timetable. Low Power Radio Service: On July 25, 1996, the Commission adopted rules creating the Low Power Radio Service (LPRS) in the 216-217 MHz band. LPRS devices will be authorized on a secondary, non- interference basis, for short-range, lower power communications including auditory assistance devices for persons with disabilities, health care assistance devices for persons with illnesses, law enforcement tracking systems, and point-to-point network control communications for Automated Maritime Telecommunications Systems (AMTS). Wireless Technologies in the Classroom: On May 21, 1996, in conjunction with the CTIA Foundation, WTB coordinated a public forum entitled "Using Wireless Technologies in the Classroom," at the J.O. Wilson Elementary School in Washington, D.C. The Bureau has also been working closely with the Office of Engineering and Technology on the NII/SUPERNET NPRM, which would make available spectrum for a new category of unlicensed equipment which could provide advanced telecommunications services to educational institutions and other users. The Bureau is also working to ensure that the Universal Service proceeding considers how wireless technologies may provide a more efficient method of delivering telecommunications services to schools and libraries. Consumer/Small Business Outreach: On January 30, 1996, WTB Chief Michele Farquhar participated in a press conference with the FTC and NASSA entitled "FTC, States Unveil 'Project Roadblock' Crackdown on New High-Tech Telescams." On March 15, 1996, WTB Chief Michele Farquhar and other WTB staff participated in an Auctions '96 Conference sponsored by the FCC's Office of Communications Business Opportunities. This one day conference provided small businesses information on spectrum licensing and proposed FCC auctions. On April 23, 1996, WTB hosted a consumer outreach session for public interest and consumer groups to discuss wireless issues and new outreach initiatives. Participants included Media Access Project, Consumer Federation of America, NASUCA and AARP. Family Radio Service: On May 10, 1996, the Commission adopted a Report and Order establishing a very low power, unlicensed, UHF two-way voice radio service for personal communications. This service is intended to meet the desires of individuals for short distance personal communication needs without licensing requirements. WTB Disabilities Task Force: In June 1996, the Bureau formed a task force to make recommendations to the Chief on how WTB can make its processes and products more accessible to those with disabilities. (3) IMPLEMENTING EFFICIENT PROCESSES TO CARRY OUT THESE GOALS Customer Service Standards: WTB is implementing customer service standards to improve our processes and our communications with customers. Among other things, the Bureau made electronic filing available for most of WTB's licenses and automated its license renewals (see below). Electronic Filing: In February 1996, WTB introduced electronic filing for Personal Communications Services, Land Mobile Radio Services, General Mobile Radio Service, Land Mobile Broadcast Auxiliary Service, and Interactive Video Data Service license applications. The new system has the capacity for receiving approximately 75% of the applications currently filed for these services. Also, on May 16, the Bureau held an electronic filing demonstration for trade press. Notice of Inquiry on Improving Processes: The Commission released a Notice of Inquiry (NOI) on February 14, 1996, seeking comment on a variety of options for improving the Commission's processes. Among other things, the NOI seeks comment on steps the WTB should take to ensure that consumers and State and local governments have sufficient opportunity to participate in proceedings relating to wireless services. FCBA Task Force: In March 1996, the Bureau clarified certain existing rules and agreed to work with the Federal Communications Bar Association Task Force and other wireless industry representatives to streamline and eliminate outdated rules and requirements and to improve public access to information. Backlog Reductions: The Enforcement Division has met its goal of reducing the number of pending informal complaints. During the government furlough, the number of outstanding complaints rose to 323; and the Division set a goal to reduce this number to less than 200 by June 1. By June 1, there were only 182 pending complaints. The Broadband Branch of the Commercial Wireless Division received 4,611 cellular applications from October 1, 1995 through September 30, 1996 and disposed of 4,843. The Narrowband Branch of the Commercial Wireless Division received 12,387 common carrier land mobile applications from October 1, 1995 through September 30, 1996 and disposed of 9,333. The Legal Branch of the Commercial Wireless Division closed 271 cases in 1995/6. Consumer Assistance Branch Phone System: Following the installation of its new phone system on March 4, 1996, the Consumer Assistance Branch responds to an average of over 1,000 calls per day, up from an average of 586 calls a year ago. The average inquiry receives a response in less than 20 seconds. WTB Web Site: The Bureau launched its web site in February 1996. The site contains information for the general public on auctions, rulemakings, news releases, fact sheets and hot topics in the Bureau. Since its launch, the site has received approximately 84,000 hits.