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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554

                                )
In the Matter of                )
                                )
Western PCS I Corporation       )  File No. WTB/POL 96-3
Petition for Preemption of the  )
Oregon Department of Revenue    )
Notice of Proposed Assessment   )
and Request for Declaratory Ruling)
                                )

                              ORDER


   Adopted:  January 20, 1999           Released:  January 20, 1999


By the Chief, Commercial Wireless Division, Wireless Telecommunications Bureau:

     1.  On July 8, 1996, Western PCS I Corporation (Western) filed a Petition for Preemption
and Request for Declaratory Ruling (Western Petition) asking the Commission to preempt the
enforcement of the Oregon Department of Revenue's (ODR's) May 20, 1996 Notice of Proposed
Tax Assessment.  In determining the value of Western's property, and thus the amount of taxes to
be paid, the Notice of Proposed Tax Assessment included the amount paid by Western to the
federal government after submitting the high bid at auction for a license to provide broadband
personal communications service (PCS) in the Portland, Oregon Major Trading Area (MTA).  In
its Petition, Western contended that the ODR's assessment of a tax based upon the amount paid
by Western for its PCS license constituted a barrier to entry in violation of section 253 of the
Communications Act of 1934, as amended (Communications Act), and constituted prohibited
entry regulation of a commercial mobile radio service (CMRS) provider in violation of section
332(c)(3) of the Communications Act.  Western requested that the Commission preempt the tax
and issue a declaratory ruling stating that taxes and assessments based upon the amounts paid for
licenses in general violate sections 253 and 332(c)(3) of the Communications Act.

     2.  On July 30, 1996, we placed Western's petition on public notice.  Subsequently, on
October 23, 1996, Western filed a Supplemental Memorandum (Western Supplement) expanding
upon its argument that Western and other CMRS carriers are subject to disparate,
disproportionate, and unfair tax assessments that are not levied on Western's competitors.  On
November 8, 1996, we sought public comment on Western's Supplement.  

     3.  On December 9, 1997, Western filed a Request for Dismissal Without Prejudice of its
Petition.  Western states that it has reached a settlement with the ODR of most of the issues that
were the subject of the Petition.  Western further states that the ODR has consented to the
dismissal of the Petition without prejudice.

     4.  In light of the settlement between Western and the ODR, there is apparently no longer
an ongoing dispute between the parties.  We therefore grant Western's request and dismiss the
Western Petition without prejudice.

     5.  Accordingly, IT IS ORDERED, pursuant to sections 4(i) and 4(j) of the
Communications Act, 47 U.S.C.  154(i) and 154(j), and authority delegated under section
0.331 of the Commission's rules, 47 C.F.R.  0.331, that the Petition for Preemption and Request
for Declaratory Ruling filed by Western PCS I Corporation on July 8, 1996 is DISMISSED
WITHOUT PREJUDICE.

                         FEDERAL COMMUNICATIONS COMMISSION



                         Steven E. Weingarten
                         Chief, Commercial Wireless Division
                         Wireless Telecommunications Bureau