******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 ) In the Matter of ) ) Electrical Engineering Company ) and PageMart II, Inc. ) ) Requests for Exclusivity ) on 929.7625 MHz ) MEMORANDUM OPINION AND ORDER Adopted: March 20, 1997 Released: March 27, 1997 By the Commission: Introduction and Executive Summary 1. On July 3, 1995, Electronic Engineering Company (EEC) filed an Application for Review, challenging the June 1, 1995, decision of the Land Mobile Branch of the Licensing Division of the Wireless Telecommunications Bureau (Bureau) denying EEC's October 14, 1994, Petition to Dismiss 929 MHz Exclusivity Request, filed against PageMart II, Inc. (PageMart). EEC asserts that Personal Communications Industry Association (PCIA) engaged in improper coordination practices when it recommended frequency 929.7625 MHz to the Commission for use by PageMart rather than for use by EEC. For the reasons that follow, the Application for Review is denied. Background 2. On February 21, 1994, PageMart submitted applications to PCIA requesting use of frequency 929.4875 MHz for 309 sites. Over the next few months, PageMart submitted additional applications to PCIA, requesting a total of 429 sites on 929.4875 MHz. On March 14, 1994, EEC submitted applications to PCIA, seeking to expand its existing system on another paging frequency, 929.7625 MHz. On March 15, 1994, PageMart submitted to PCIA a request for nationwide exclusivity on 929.4875 MHz, to accompany the applications which it had previously submitted for use of that frequency. On April 14, 1994, EEC submitted additional applications to PCIA seeking to implement its proposal to expand its paging system. 3. During the first week of May, 1994, PCIA began to evaluate the PageMart applications which had been filed with PCIA on February 21, 1994, and determined that 929.4875 MHz could not be coordinated for a nationwide system because that frequency had already been assigned to another applicant for three exclusive regional systems. PCIA ultimately determined that the best choice for PageMart's nationwide system would be 929.7625 MHz because there were only a handful of exclusive local systems on that channel, and there were no alternative totally clear channels available. PageMart authorized PCIA to amend its applications and nationwide exclusivity request to reflect a request for use of the 929.7625 MHz frequency. PageMart's applications were then submitted to the Commission by PCIA during the first week of May, 1994. 4. During the third week of May, 1994, PCIA began to review the EEC applications and determined that 929.7625 MHz could not be coordinated for EEC's use on its non-exclusive system, due to the assignment of the frequency to PageMart on an exclusive basis. On October 14, 1994, EEC filed a Petition to Dismiss PageMart's 929 Exclusivity Request (Petition), with the Land Mobile Branch of the Bureau's Licensing Division. On October 17, 1994, PCIA returned the applications to EEC, because a co-channel concurrence agreement between EEC and PageMart had not been received by PCIA. By a letter ruling, dated June 1, 1995, pursuant to delegated authority, the Land Mobile Branch denied EEC's Petition on the basis that EEC had not filed a request for local or regional exclusivity, nor did EEC have enough stations to qualify for regional exclusivity, at the time that PageMart filed its exclusivity request. 5. On July 3, 1995, EEC filed an application for review of the Branch's June 1, 1995, denial of its Petition. EEC argues that PCIA "substantially altered" PageMart's applications and related frequency exclusivity request by changing the requested frequency from 929.4875 MHz to 929.7625 MHz, without first obtaining the signature of the applicant prior to submitting PageMart's applications and exclusivity request to the Commission. EEC also alleges that the Bureau improperly permitted PCIA to make the frequency change. 6. On July 18, 1995, PageMart filed an opposition to EEC's application for review. In response to EEC's allegations, PageMart argues that it had not received preferential treatment in the coordination process. PageMart argues that it submitted its applications and a request for exclusivity prior to EEC, allowing PCIA to recommend frequency 929.7625 MHz to PageMart because EEC had not filed a request for local or regional exclusivity on frequency 929.7625 MHz, nor did it have sufficient stations to qualify for local exclusivity. PageMart additionally argues that Section 90.175(c) of the Commission's Rules does not address procedures internal to PCIA's coordination efforts when handling changes to applications while pending coordination, and any changes made to its applications by PCIA were made under PageMart's authority. 7. On August 2, 1995, EEC filed a reply to PageMart's opposition to its July 18, 1995, Application for Review. In response to PageMart's allegations, EEC argues that PCIA favored PageMart over EEC, to the detriment of EEC, by allowing PageMart to make improper "major amendments" to its applications. EEC also asserts that it was "first-in-line" for frequency 929.7625 MHz because PageMart's applications were not properly amended prior to the time that PCIA recommended to the Commission that PageMart be licensed on the frequency. Discussion 8. EEC asserts that a frequency coordinator is only authorized to change the frequency requested on an application, if the applicant signs the amended application. EEC also asserts that the Bureau committed error by permitting PCIA, a purportedly neutral frequency coordinator, to make a change in frequency on PageMart's applications and frequency exclusivity request, without first obtaining PageMart's signature on the changed applications and application materials. We find that Section 90.175(c) of our Rules, which governs frequency coordination for 929-930 MHz frequencies, does not provide any specific procedures for changes in applications made by a frequency coordinator. Rule 90.175(c) addresses the requirements for coordination itself, not the internal procedures to be used by frequency coordinators. Rule 90.175(c) provides no specific instructions for handling changes to applications while pending coordination, and allows the frequency coordinator to recommend the most appropriate frequency. Other rule sections cover the execution of applications and amendments of applications before the Commission. Rule 90.175(c), however, does not explicitly incorporate those rule sections in connection with changes made to a proposal during pre-filing procedures while still before the coordinator. Thus, absent evidence that the changes made were without authority of the applicant, or were made subsequent to the frequency coordinator's submission of the applications to the Commission, PageMart's applications and related exclusivity request for use of 929.7625 MHz were properly accepted for filing. 9. We conclude that PageMart received no preferential treatment in the coordination process. PCIA was authorized by the Commission to process 900 MHz paging license applications chronologically. PCIA processed the applications in order of receipt, consistent with the long established standard for coordinators. PageMart was the first in line, having filed its applications with PCIA in the period between October, 1993, and February, 1994, and its request for exclusivity in March, 1994. PCIA had the discretion to change the frequency requested by PageMart to the most appropriate one, prior to the filing of PageMart's applications with the Commission. Because the change in frequency was made by PCIA prior to the time the applications were filed with the Commission, the change in frequency did not constitute a substantial application amendment which would require an approving signature of a PageMart principal. As a general matter, incumbent licensees are required to submit a request for designation of exclusive status to the frequency coordinator. In the instant case, 929.4875 MHz was not available on a nationwide basis in early May, 1994, the time of processing of Pagemart's earlier-filed applications. As a proper pre-FCC filing procedure, PCIA recommended that PageMart use the 929.7625 MHz frequency. Although EEC did apply to expand its operations on 929.4875 MHz, it failed to file an exclusivity request with PCIA until October 17, 1994. 10. It is the responsibility of PCIA, as frequency coordinator of the 900 MHz paging services, to file 929-930 MHz applications with the Commission. We note that there may be an occasion, such as in the instant case, when the frequency coordinator exercises its authority and recommends a different frequency than that requested by the applicant. In the Report and Ordermodifying the procedures by which most of the frequencies allocated to the private land mobile radio services are assigned to individual applicants, the Commission stated, "Although we are giving coordinators greater discretion in choosing frequencies, we believe coordinators need this flexibility to maximize the use of the spectrum." We do not believe that PCIA acted improperly in recommending the 929.7625 MHz frequency to PageMart. Instead, we believe that PCIA's actions were appropriate and consistent with its obligations as a frequency coordinator. Conclusion 11. For the above reasons, IT IS ORDERED that Electronic Engineering Company's Application for Review IS HEREBY DENIED. FEDERAL COMMUNICATIONS COMMISSION William F. Caton Acting Secretary