Before the        DA 95-617
                     FEDERAL COMMUNICATIONS COMMISSION
                          Washington, D.C.  20554


In the Matter of      )
     )
Interactive Video and Data Service     ) 
(IVDS) Licenses       )
     )
Additional Requests by Lottery   )
Winners to Extend Construction Deadline      ) 
 
                                   ORDER
 
     Adopted:  March 24, 1995    Released:  March 24, 1995  

By the Associate Chief, Wireless Telecommunications Bureau:  
             
     1.  Eleven licensees in the Interactive Video and Data Service (IVDS) have requested
a waiver of Section 95.833(a) of the Commission's Rules, which requires, in part, that each
IVDS system licensee make service available to at least 10 percent of the service area
population or geographic service area within one year of the grant of the license.  In a
previous Order adopted  March 13, 1995, the Bureau waived this one-year build-out
requirement for six licensees.  In this present Order, we extend that relief to the eleven
additional licensees.



     2.  Each of the present petitioners are situated similarly to the previous six.  As noted
in the previous Order, until October 20, 1994, a court case was pending that challenged the
lottery process used to award these licenses.  Further, three Applications for Review
currently before the Commission make similar challenges and might well, if denied, be
appealed to the courts.  As noted previously, these challenges have created, and continue to
create, uncertainty concerning the subject licenses. 

     3.  Pursuant to Section 1.3 of the Commission's Rules, the Commission may waive a
provision of its rules "if special circumstances warrant a deviation from the general rule and
such deviation will serve the public interest."  Northeast Cellular Telephone Co. v. FCC, 
897 F.2d 1164, 1166 (D.C. Cir. 1990) (citing WAIT Radio v. FCC, 418 F.2d 1153, 1159
(D.C. Cir. 1969), cert. denied, 409 U.S. 1027 (1972)).  Here, the general rule was intended "to
reduce the filing of speculative applications by entities that have no real intention of
implementing [IVDS] systems and to avoid the potential for warehousing of IVDS spectrum." 
On the facts before us, we find that the standard for waiver is met.  We are aware of no
evidence of speculation or warehousing, and we find it would be unreasonable to require the
petitioners to meet the current build-out requirements, given the uncertainty that exists
concerning their licenses.  Moreover, we find that waiving the one-year construction
deadline will not result in delays in service to the public because these licensees will still be
required to satisfy the three-year and five-year construction benchmarks.  Moreover, we
believe that providing licensees with additional flexibility in satisfying the construction
benchmarks is desirable and consistent with our intent to allow for more flexible use of the
spectrum. 




     4.  Our decision makes moot the additional argument made by certain petitioners that
an alleged lack of IVDS equipment, or installation delays, prevents them from ordering,
receiving, or installing equipment in time to meet the build-out requirement. 

     5.  Accordingly, IT IS ORDERED that the requests of the licensees for waiver of
Section 95.833(a) of the Commission's Rules, 47 C.F.R.  95.833(a), ARE GRANTED to the
extent that we waive the one-year construction requirement, while retaining the three-year 
and five-year requirements, for the eleven subject licenses.  All other requests ARE DENIED. 
This action is taken pursuant to Section 1.3 of the Commission's Rules, 47 C.F.R.  1.3, by
delegated authority.   IT IS FURTHER ORDERED that this action IS EFFECTIVE UPON
RELEASE.


                                                        FEDERAL COMMUNICATIONS COMMISSION


                                                        Laurence Atlas 
     Associate Chief
     Wireless Telecommunications Bureau