NEWSDC 96-103              ACTION IN DOCKET CASE       November 21, 1996

                        FCC MODIFIES IVDS AUCTION RULES
                            (PP Docket No. 93-253)

     The FCC modified the auction rules for the Interactive Video and Data Service (IVDS). 
Specifically, the Commission amended certain provisions concerning the treatment of small
businesses and businesses owned by members of minority groups and women.  In addition, the
Commission amended its IVDS auction procedures.  The adopted rules make the following two
major changes to the previous IVDS auction rules:

     þ    Extending bidding credits to small businesses based upon a revised two-tier small
          business definition; and

     þ    Increasing the amount of upfront payments required to participate in an IVDS
          auction.

     Under the new IVDS competitive bidding rules, there will be a 15 percent bidding credit
for very small businesses and a 10 percent bidding credit for small businesses.  A "very small
business" is an entity with average gross revenues not exceeding $3 million for each of the
preceding three years.  A "small business" is now defined as an entity with average gross
revenues not exceeding $15 million for each of the preceding three years.   The Commission
will calculate eligibility as a very small business or small business based on gross revenues,
which is consistent with the Commission's approach in several other services. 

     After the agency's experience in conducting the initial IVDS auction, the Commission
examined its rules and determined that it should take certain steps to minimize the possibility of
insincere bidding and bidder default.  Therefore,  the Commission increased the initial upfront
payments for participation in the IVDS auction to $9,000 per MSA license and $2,500 per RSA
license, for the maximum number of licenses on which an entity wishes to bid.  

     Action by the Commission November 15, 1996 by Tenth Report and Order (FCC
96-447).  Chairman Hundt, Commissioners Quello, Ness and Chong.

                                 - FCC - 
News Media contact: Kara Palamaras at (202) 418-0654  
Wireless Telecommunications Bureau contacts: Christina Clearwater and Howard Griboff at
(202) 418-0660.