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File pnmc5021 (.txt & .wp) is in directory \pub\Public_Notices\Miscellaneous. ***************************************************************** ******** $// Order, Bay Springs Telephone Co., DA 95-865//$ $/ 24.714(d) Eligibility for partitioned licenses/$ RECORD ONLY Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 DA 95-865 In the Matter of ) ) Partitioning Plan of ) Bay Springs Telephone Company, ) PCS PRIMECO, L.P. and Peterson ) County Communications, L.P. ) DECLARATORY ORDER Adopted: April 18, 1995 Released: April 18, 1995 By the Chief, Wireless Telecommunications Bureau: 1. Before the Wireless Telecommunications Bureau ("Bureau") for consideration is a request, filed on April 14, 1995, by Bay Springs Telephone Company, Inc. ("Bay Springs"), PCS PRIMECO, L.P. ("PRIMECO") and Peterson County Communications, L.P. ("Peterson"). Bay Springs provides telephone service to the rural areas surrounding Jackson, Hattiesburg, and Laurel, Mississippi. PRIMECO was the winning bidder for the "B Block" broadband personal communications service ("PCS") license that covers the New Orleans- Baton Rouge Major Trading Area ("MTA"). Peterson is a prospective applicant for the "C Block" broadband PCS license that serves the Jackson Basic Trading Area ("BTA"). The parties jointly request a determination that a partitioning plan, encompassing the New Orleans-Baton Rouge MTA and the Jackson BTA, would conform to the requirements of Section 24.714(d) of the Commission's Rules, 47 C.F.R.  24.714(d). For the reasons described below, the Bureau finds that the proposed partitioning plan is in compliance with Section 24.714(d), and would further the Commission's goal of expediting the provision of broadband PCS to rural areas. 2. In the Fifth Report and Order, PP Docket No. 93-253, the Commission decided that rural telephone companies should be permitted to obtain broadband PCS licenses by partitioning sections of an MTA or BTA. Partitioning was adopted to promote investment in and rapid deployment of new technologies in rural areas, and to provide rural telephone companies with opportunities to implement wireless services that could complement or replace the landline network. Rural telephone companies that meet the definition set forth in Section 24.720(e) of the Rules, 47 C.F.R.  24.720(e), are permitted to obtain a partitioned license through either 1) forming bidding consortia and then partitioning the license among the parties to such consortia, or 2) private negotiations with a potential broadband PCS licensee either before or after the auction. 3. The Commission, in Section 24.714(d) of the Rules, also established certain requirements for partitioned areas. Partitioned areas must conform to established geopolitical boundaries (such as county lines) and each partitioned area must include all portions of the rural telephone company's wireline service area that lies within the PCS service area. Finally, the partitioned area must be reasonably related to the rural telephone company's wireline service area. In further refining what is meant by the term, "reasonably related," the Commission established a general presumption of reasonableness if the partitioned areas contain no more than twice the population of that portion of a rural telephone company's wireline service area that lies within the PCS service area. At the same time, the Commission recognized "that rural telephone companies will require some flexibility in fashioning areas in which they will receive partitioned licenses," and thus declined to adopt a strict rule concerning the reasonableness of the partitioned areas. 4. Bay Springs represents that it is a rural telephone company within the meaning of Section 24.720(e) of the Commission's Rules. Bay Springs seeks to obtain from PRIMECO and Peterson partitioned sections of the New Orleans-Baton Rouge MTA and the Jackson, MS BTA that follow established geopolitical boundaries. Specifically, PRIMECO anticipates partitioning a portion of the "B Block" broadband PCS license for the New Orleans-Baton Rouge MTA to conform to the boundaries of the Laurel and Hattiesburg Mississippi BTAs. Peterson intends to partition five of the fourteen counties contained in the "C Block" broadband PCS license for the Jackson, MS BTA: Scott, Smith, Rankin, Madison and Hinds counties. Bay Springs provides local telephone service to customers in the Laurel and Hattiesburg BTAs, as well as Scott, Smith and Rankin counties. Bay Springs admits, however, that populations within the areas to be partitioned far exceed the population standards set forth in the note to Section 24.714 of the Commission's Rules that establish a presumption of reasonableness for the partitioned areas. Bay Springs, PRIMECO and Peterson therefore rely upon an alternative approach to demonstrate that the partitioned area is reasonably related to Bay Springs' wireline service area. 5. The parties argue that an analysis of Bay Springs' wireline customer base demonstrates strong economic interdependence between the area Bay Springs currently serves and the Jackson, Laurel and Hattiesburg Basic Trading Centers. Specifically, the parties argue that limiting Bay Springs to serving its immediate rural telephone exchange would unduly limit its ability to serve the mobile communications needs of most rural customers, who must travel to the Basic Trading Centers of Jackson, Hattiesburg and Laurel to shop, obtain specialized services, maintain employment or seek higher education. Therefore, including these three Basic Trading Centers in the partitioning plan would facilitate the provision of PCS to Bay Springs' customers in a service area that best reflects the mobile communications requirements of the population in this part of rural Mississippi. 6. The parties further demonstrate that because Bay Springs has a proven ability to serve these sparsely populated areas it is uniquely positioned to expedite broadband PCS throughout the region. The Commission has observed that rural telephone companies can make efficient use of their existing infrastructure to speed service to rural areas. The need to expedite service is particularly compelling in this instance because, while Jackson and Hattiesburg are both fully served by two cellular carriers, barely half of the rural areas within the Bay Springs' local exchange are served by even one cellular carrier. Therefore, by permitting this partitioning plan, Bay Springs' customers will, at a minimum, be able to avail themselves of a competitive alternative to the single cellular provider. The ultimate benefit to Bay Springs' customers of partitioning will be the ability, for the first time, to subscribe to an advanced wireless mobile communications service that achieves comprehensive coverage throughout the area where they live and work. 7. In sum, we find that the partitioning plan as represented satisfies the requirements of 24.714(d) of the Commission's Rules. The parties have amply demonstrated that the partitioning plan 1) conforms to established political boundaries, 2) includes the wireline service area of Bay Springs, and 3) is reasonably related to the Bay Springs wireline service area, given the economic interdependence of the partitioned area and the Bay Springs local exchange area. Permitting such partitioning would further the Commission's objective of expediting the provision of advanced technologies to rural areas. 8. Accordingly, IT IS ORDERED, pursuant to Sections 4(i) and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C.  154(i) and 303(r), and Section 24.714(d) of the Commission's rules, 47 C.F.R.  24.714(d), that the partitioning plan submitted by Bay Springs Telephone Company, Inc., PCS PRIMECO, L.P. and Peterson County Communications, L.P. is APPROVED. FEDERAL COMMUNICATIONS COMMISSION Regina M. Keeney Chief, Wireless Telecommunications Bureau