******************************************************** 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. ***************************************************************** Federal Communications Commission Washington, D.C. 20554 January 29, 1999 Released: January 29, 1999 BY FACSIMILE AND FIRST CLASS MAIL Lloyd W. Coward, Esq. Meyer, Faller, Weisman & Rosenberg, P.C. 4400 Jenifer Street, N.W. Suite 380 Washington, D.C. 20015 Re: TE-MCG Consortium Dear Mr. Coward: This letter is in response to a request for waiver of 47 C.F.R.  90.812 filed on behalf of TE-MCG Consortium (TE-MCG). On August 16, 1996, the Commission granted TE- MCG two 900 MHz Specialized Mobile Radio (SMR) licenses for which TE-MCG was the winning bidder in the auction that concluded on April 15, 1996. Grant of these licenses was conditioned upon TE-MCG paying its bids in quarterly installment payments. At the time of this grant, section 90.812 of the Commission's rules provided that installment payments for 900 MHz SMR licenses were subject to 47 C.F.R.  1.2110(e). This section provided that an entity that was more than 90 days delinquent in any installment payment was in default; however, upon default or in anticipation of default, licensees were permitted to request a grace period of three to six months. 47 C.F.R.  1.2110(e)(4) (1997). TE-MCG's first installment payment of $17,313.76 was due on November 30, 1996. Shortly after the licensee received the loan documents, which included amortization tables reflecting the payment schedule, TE-MCG contacted the Commission regarding an error in the interest rate. As stated in the exhibits to TE-MCG's waiver request, new amortization tables were provided to the licensee in March 1997. On December 19, 1997, TE-MCG made a payment of $86,568.86. This payment was applied to installment payments due on November 30, 1996; February 28, 1997; May 31, 1997; August 31, 1997; and November 30, 1997. Thus, as of December 19, 1997, TE-MCG was current in its payments. TE-MCG has timely paid all subsequent installment payments under the Commission's rules. Lloyd W. Coward, Esq. Page 2 The Wireless Telecommunications Bureau (Bureau) appreciates TE-MCG bringing the administrative error in the amortization tables to its attention. The Bureau also acknowledges that TE-MCG did not have correct amortization schedules in order to submit the payments due on November 30, 1996, and February 28, 1997. However, once the amortization tables were corrected in March 1997, TE-MCG did not make a payment until December 1997, over eight months later. Under the Commission's rules in effect at the time, both of TE-MCG's 900 MHz licenses should have automatically cancelled when it failed to submit its installment payment due on May 31, 1997, within 90 days of the deadline and also failed to submit a timely grace period request. The Bureau recognizes that the acceptance of TE-MCG's December 1997 payment could have been construed as a waiver of the missed payment deadlines. The Bureau also acknowledges that TE-MCG's record of timely payments over the past year is indicative of a commitment on the part of TE-MCG to meet its payment obligations. The Bureau therefore grants TE-MCG a waiver of sections 90.812 and 1.2110(e)(4) with respect to its late payments. Nevertheless, TE-MCG should not receive a complete waiver of the payment deadline, because it possessed corrected loan documents for over eight months prior to making a payment. In light of this finding, we assess TE-MCG a late payment fee of 5 percent of the total amount due in one quarterly installment payment. Accordingly, TE-MCG will not be deemed in default on its two 900 MHz SMR licenses if it makes a payment of $865.69, which represents 5 percent of one installment payment for the two licenses conditionally granted to TE-MCG, no later than 30 days from the date of this letter. Failure to timely submit this amount in full by March 1, 1999, will result in the automatic cancellation of TE-MCG's 900 MHz SMR licenses. This action is taken in accordance with delegated authority pursuant to 47 C.F.R.  0.331. Sincerely, Thomas J. Sugrue Chief, Wireless Telecommunications Bureau