$//R&O,Terrestrial Microwave Fixed Radio Service,WT Dck 94-148,FCC 96-51//$ $/101.1 Scope and authority/$ Before the FEDERAL COMMUNICATIONS COMMISSION FCC 96-51 Washington, D.C. 20554 In the Matter of ) ) Reorganization and Revision of ) WT Docket No. 94-148 Parts 1, 2, 21, and 94 of ) the Rules to Establish a New ) Part 101 Governing Terrestrial ) Microwave Fixed Radio Services ) ) Amendment of Part 21 of the ) CC Docket No. 93-2 Commission's Rules for the Domestic ) Public Fixed Radio Services ) ) McCaw Cellular Communications, Inc. ) RM-7861 Petition for Rulemaking ) REPORT AND ORDER Adopted: February 8, 1996 Released: February 29, 1996 By the Commission: TABLE OF CONTENTS Subject Paragraph I. INTRODUCTION 1 II. BACKGROUND 2-6 III. MAJOR ISSUES A. Applications and Licenses 7-23 1. Elimination of Public Interest and Other Showings 7-9 2. Consummation of Assignment and Transfers 10-12 3. Application Forms 13-17 5. License Term/Authorization Renewals 18-20 6. Electronic Filings 21-23 B. Operational Requirements 24-46 1. Pre-authorization Construction and Conditional Licensing24-29 2. Construction Period 30-32 3. Definition of In Operation 33-35 3. Use of Transmitter Restrictions 36-38 4. Leasing Excess Capacity 39-42 5. Multiple Address Systems 43-47 C. Technical Standards 48-76 1. Automatic Transmitter Power Control 48-52 2. Transmitter Power Limitations 53-57 3. Minimum Path Length 58-61 4. Frequency Coordination62-65 5. Antenna Standards 66-71 6. Channel Loading Requirements72-76 D. Developmental Authorizations77-79 E. Transition Period80 F. Thirty-Day Public Notice Requirement 81 IV. CONCLUSION 82 V. ADMINISTRATIVE MATTERS 83-85 VI. ORDERING CLAUSES 86-89 Appendix A Part 101 Rules Appendix B Cross Reference Table Appendix C List of Parties Filing Comments in WT Docket No. 94-148 Appendix D List of Parties Filing Comments in CC Docket No. 93-2 I. INTRODUCTION 1. On December 9, 1994, we adopted a Notice of Proposed Rule Making (Notice) in WT Docket No. 94-148. The Notice proposed simplifying the rules for the common carrier and private operational fixed microwave services, currently contained in Parts 21 and 94 of the Commission's Rules respectively, and to consolidate those rules into a new Part 101. In a separate proceeding, Notice of Proposed Rule Making in CC Docket No. 93-2 (Point-to- Point Notice), we proposed revising Part 21 to allow common carrier microwave applicants to commence construction of proposed facilities prior to the grant of authorizations and to eliminate certain reporting requirements. Because the proposals outlined in the Point-to-Point Notice concern Part 21 microwave operations which we are consolidating in Part 101, we are addressing both proceedings together. As discussed below, we are adopting most of the proposals presented in the above proceedings. Creating one comprehensive new rule part for these microwave services and eliminating undue regulatory burdens will result in significant benefits for both the public and the Commission. II. BACKGROUND 2. Communication services that use the microwave spectrum for fixed services include common carriers (currently regulated by Part 21), common carrier multiple address systems (Part 22), broadcasters (Part 74), cable TV operators (Part 78), and private operational fixed users (currently regulated by Part 94). The radio frequency spectrum is allocated among these services on either a shared or exclusive basis. Of these services, the common carrier and private operational fixed microwave users are the most similar in technical requirements and share the most frequency bands. The convergence of the common carrier and private operational fixed microwave technical standards occurred over the last decade as a result of several rulemaking proceedings. A further convergence of these services occurred as a result of the reallocation of five bands above 3 GHz on a co-primary basis to common carrier and private operational fixed microwave licensees that are relocating from the 1850-1990, 2110-2150, and 2160-2200 MHz bands (2 GHz bands) to accommodate Personal Communications Services (PCS) and other emerging technologies. 3. Also, as a result of the emerging technologies spectrum reallocation and the resulting increase in frequency band-sharing, common carrier and private microwave industry members united to develop joint interference standards and coordination procedures. A subcommittee of the Telecommunications Industry Association's Fixed Point-to-Point Microwave Engineering Committee (TIA TR14.11 Interference Criteria Engineering Subcommittee) held joint meetings with the National Spectrum Managers Association (NSMA), a group of frequency coordinators for Part 21 applicants, to determine interference criteria for Part 21 and Part 94 users. This collaboration resulted in a revised TIA Telecommunications Systems Bulletin TSB 10-F, "Interference Criteria for Microwave Systems," (TSB 10-F) which was adopted by the microwave industry on May 31, 1994. 4. Consolidation of these services is also appropriate because the majority of the license application processing for the Part 21 and Part 94 microwave services is now performed by the Wireless Telecommunications Bureau's Licensing Division in Gettysburg, Pennsylvania. Previously, the application processing for these services was performed by different Commission offices, which maintained separate processing practices and policies. Consolidation will bring uniformity to the fixed microwave application processing procedures. 5. For these reasons, we proposed to reorganize and revise Parts 21 and 94 of the rules to establish a new Part 101. At the same time, we proposed eliminating unnecessary and out-dated rules and reducing regulatory burdens. We anticipated that the new consolidated Part 101 would result in a number of major benefits. First, the public would benefit from simplified and streamlined rules. Second, both the public and the Commission would benefit from reduced regulatory burdens. Third, the proposed rules would encourage more efficient use of the microwave spectrum by permitting more intensive use of microwave equipment. Fourth, common technical standards for common carrier and private operational fixed microwave equipment would lead to economies of scale in microwave equipment production and lower equipment prices to licensees. Moreover, private and common carrier microwave systems are often technically and operationally similar, but are now subject to differing regulation depending on whether an applicant files under Part 94 or Part 21 of the Commission's rules. The new consolidated Part 101 will eliminate this arbitrary distinction and further regulatory symmetry between common carrier and private operational fixed microwave services. The Point-to-Point Notice also proposed eliminating unnecessary regulations and reducing burdens under Part 21. 6. The parties that filed comments and reply comments in response to these two proceedings are listed in Appendices C and D. The parties overwhelmingly support the Commission's efforts to streamline, update, and simplify the rules for the common carrier and private operational fixed services. While we have reviewed all of the suggested changes carefully, we discuss below only the major issues raised. Many of the minor suggestions have been incorporated directly into the final rules without textual discussion. III. MAJOR ISSUES A. Applications and Licenses 7. Elimination of Public Interest and Other Showings. The Notice in WT Docket No. 94-148 proposed eliminating several application showings currently required of common carrier microwave applicants under Part 21 of the rules. Specifically, we proposed eliminating the following: (1) the financial showing required under Sections 21.13(a)(2) and 21.17; (2) the public interest showing required under Section 21.13(a)(4); (3) the requirement that applicants submit a copy of any franchise or other authorization when such authorizations are required by local law, pursuant to Section 21.13(f); (4) the showings regarding the management and operation of the station and maintenance procedures including the address and telephone number of a maintenance person, as required by Sections 21.13(g) and 21.15(e); (5) the vertical profile sketch, as required by Section 21.15(c), the site availability showing of Section 21.15(a); (6) the public interest showing required for applicants in the Point-to-Point Microwave Radio Service, pursuant to Section 21.706(a); and (7) posting of station authorization information, as required by Section 21.201. 8. Comments. The commenters overwhelmingly support our initiative to reduce regulatory burdens and agree that providing much of the requested information is unnecessary and burdensome. Some commenters, however, oppose the elimination of the requirement to file the address and telephone number of a maintenance center or person responsible for technical operation, because they believe such information is important in the event of interference and for other official purposes. All of the commenters addressing the issue of license posting requirements recommend that the Commission retain the existing rule, noting that it is a minimally burdensome requirement which helps to maintain adequate station records, ensures that facilities are operating within the parameters of the station authorization, and assists parties in identifying the licensee of a station when seeking to resolve interference problems. Telecomm Services Group also expresses concern regarding the elimination of the public interest provisions found in 47 C.F. R. Sections 21.13(a)(4) and 21.706(a) and (b). 9. Discussion. Based on the comments, we are eliminating several application showings required of common carrier microwave applicants under Part 21 of the rules. More specifically, we will no longer require applicants to file with their initial application a (1) financial showing, (2) public interest statement, (3) local franchise authorization, (4) vertical profile sketch, or (5) site availability showing. At the time the Commission imposed these requirements, they were used in monitoring carriers' investments and operations. Today, however, we rely on competition and market forces to influence common carriers' market decisions, and depend less on such detailed information from the carriers. Accordingly, these showings now are unnecessary for license grant. Further, eliminating these undue burdens will save time, effort and money for applicants, licensees and the Commission. We note, however, that the Commission has the authority to require an applicant to file any of the above information, where it finds that such information is necessary. While we no longer will require a specific public interest statement, we note that all the information on the initial application form and any associated filings, will be used to make a public interest determination. As requested by the commenters, and for the reason stated in paragraph 8, we will continue to require licensees to post station authorizations at their facilities and to require applicants to file the address and telephone number of a point-of-contact or person responsible for technical operation. 10. Consummation of Assignments and Transfers. Currently, Part 21 requires common carrier applicants to complete assignments or transfers of control within 45 days of the date of authorization, and to notify the Commission within ten (10) days of consummation. Applicants, however, frequently request extensions of time to complete assignments or transfers. We requested comment on whether the time for consummation of assignments and transfers should be extended or whether applicants should be allowed merely to notify the Commission of failure to consummate, rather than requiring applicants to file, and the Commission to grant, repeated extension requests. We also proposed to eliminate the requirement for common carriers to notify the Commission within 10 days of consummation. 11. Comments. Many of the commenters favor extending the period of time permitted for the consummation of an assignment or transfer of control. There is disagreement, however, on the amount of time that should be required for the consummation. Airtouch supports extending the time for consummation of an assignment or transfer to 360 days, stating that this time frame allows more than sufficient time for consummation and eliminates the need for extension requests and the associated burdens on carriers and the Commission. Other commenters, such as Alltel and GTE, believe that the current 45-day consummation period should be extended to 60 days, as 360 days may be unnecessarily long and may increase the difficulty of licensees complying with Commission notification requirements. Telephone and Data Systems, Inc. supports a 180-day period for consummation. Also, several parties address the issue of eliminating the notification requirement. Alltel contends that notification of consummation is a minimal burden which serves to avoid confusion as to whether a transaction has been completed. GTE and Bellsouth contend that it is an unnecessary burden, and that parties should be required to notify the Commission only if the transfer or assignment is not completed. 12. Discussion. Based on our experience in the private operational fixed service, we will conform the period for consummation of assignment and transfer for common carrier licensees to that of private operational fixed licensees. Under existing Part 94, private operational fixed service entities are not subject to any time limitation for consummating an assignment or transfer of control. Eliminating the period for consummation of assignments or transfers should satisfy the concerns of the commenters and avoid the numerous extension requests filed with the Commission each year. We believe that conforming common carrier consummation procedures with private operational fixed service procedures will reduce administrative burdens and carriers costs. We see no public benefit in extending the period to 60 days or more, as such a measure would not avoid processing burdens, and would invite requests for extensions of time as does the existing 45 day period. Consistent with eliminating the consummation period, we eliminate the requirement for common carriers to notify the Commission within 10 days of consummation. Given that applicants will have no time constraints to complete these transactions, we will presume that a consummation of an assignment or transfer will occur and the Commission's database will be updated to reflect the consummation when the application is granted. To avoid database inaccuracies and to alleviate commenters' concerns, we will require both common carrier and private operational fixed service licensees who fail to consummate, to modify their licenses accordingly within 30 days of a failure to consummate. See Sections 101.13 and 101.15. 13. Application Forms. FCC Form 430 (Licensee Qualification Report). In the Point-to-Point Notice, we proposed eliminating the requirement that Part 21 licensees and applicants report licensee qualification information on a separate FCC Form 430, and instead proposed that such information be included in a revised FCC Form 494 (Application for New or Modified Microwave Radio Station License under Part 21). 14. FCC Form 494A. To streamline the reporting requirements for applicants, to reduce redundancy, and to decrease administrative burdens, we proposed eliminating the requirement that common carrier applicants file an FCC Form 494A upon completion of construction. We stated that we had not found the information provided on this form to be essential to processing these applications, and that existing rules should provide sufficient enforcement mechanisms for dealing with applicants who fail to construct or operate their facilities as required. We also asked whether eliminating the filing of the FCC Form 494A would leave the public without adequate notice of which common carrier facilities had actually been constructed, or would result in warehousing of frequencies due to failure to construct. 15. FCC Forms 702 and 704. In addition, in the Point-to-Point Notice we proposed consolidating FCC Forms 702 ("Application for Consent to Assignment of Radio Station Construction Authorization or License") and FCC Form 704 ("Application for Consent to Transfer of Control") into a new FCC Form 705 ("Application for Assignment or Transfer of Control Under Part 21") to streamline reporting requirements related to assignments or transfers of control. 16. Comments. Several commenters in the Point-to-Point Notice support our proposal to eliminate the FCC Form 430 requirement. Others, however, express concern that they would have to repeat ownership information, or other voluminous licensee qualification information every time they applied for a new or modified facility. The issue of application forms was also addressed in comments to the WT Docket No. 94-148 proceeding. For example, AirTouch asks that the Commission eliminate the annual FCC Form 430 filing requirement for common carrier licensees, contained in Section 101.15(h). Commenters also support eliminating the Form 494A filing requirement. Nynex, for example, states that the information contained on FCC Form 494A and the public notice, reflecting the filing of the 494A, is redundant and unnecessary and that the Commission should only require the licensee to submit a letter of notification certifying completion of construction and activation of the facility. Some commenters, however, express concern about maintaining the accuracy of the databases used for frequency coordination, should the 494A be eliminated. All commenters addressing the issue of developing one application form to reflect either an assignment or transfer of control, support consolidating FCC Forms 702 and 704. Finally, commenters suggest the adoption of unified application forms for use by the common carrier and private operational fixed microwave services, as an additional means of streamlining the application and licensing process (i.e., consolidation of the Part 21 Form 494 and Part 94 Form 402). 17. Discussion. We are eliminating use of the Form 430 for common carrier microwave facilities licensed under Part 101. The essential ownership information we receive via this form will be incorporated into the Form 494 replacement. To allay commenters' concerns that they will be required to repeat ownership data each time they file an application for construction authority, the replacement form will require the submission of this information only in those instances requiring an update of the licensee qualification information or when an applicant establishes itself as a new common carrier. To further reduce applicants' filing burdens, we are eliminating the requirement to file a Form 494A, certifying completion of construction for these entities as well. The information provided on this form is not essential to granting a license. The existing rules provide sufficient enforcement mechanisms for dealing with applicants who fail to construct or operate as required. To alleviate concerns about maintaining the accuracy of the data base, we will list licensees who lose their licenses for failure to construct on a public notice. We also are eliminating the Forms 702 and 704 for common carrier entities subject to new Part 101. However, we will defer implementing this decision until the new unified application forms are completed. We are developing a unified application form for both common carrier and private operational fixed microwave services and a new Form 705 as a replacement for the 702 and 704 forms. In the interim applicants and licensees should continue to use these existing forms. We will notify the public by public notice when the new forms supersedes use of Forms 494, 702, and 704. 18. License Term/Authorization Renewals. Currently licenses are issued for a period of five years under Part 94 and up to ten years under Part 21. Part 21 also specifies the date on which expiration of the authorization will occur. For example, licenses for Point-to-Point Microwave Radio Service, Local Television Transmission Service, and Digital Electronic Message Service expire on February 1. In the Notice, we proposed that licenses be issued for a period not to exceed ten years from date of grant. 19. Comments. The commenters support a ten-year license term. Some commenters, however, argue that failure to include specific expiration dates for the microwave services causes confusion for renewal filings, as the "date of grant" is not always evident, and even where clearly evident, the new rule will require licensees to file perhaps hundreds of separate renewals on a staggered basis. GTE states that Section 101.67, as proposed, will present serious logistic and monitoring problems for companies that hold hundreds of microwave licenses. 20. Discussion. We are adopting a ten-year license term for all Part 101 licensees. A ten-year license term eliminates unnecessary paperwork for the Commission as well as the public. Further, it makes the licensing term consistent between the common carrier and private operational fixed services. As proposed, authorizations will be issued for a period of ten years from the date of original issuance, modification, or renewal. Licensees will have the discretion to select a date (month and day) that their licenses will expire. In no event will the license period exceed ten years. A term of less than ten years may be applied to permit the orderly scheduling of renewal applications. Under this rule, concerns regarding monitoring burdens should be abated, as licensees will be able to prepare consolidated renewal application filings. This revised license renewal schedule will become effective on August 1, 1996. 21. Electronic Filings. In the Notice, we proposed to allow electronic filing for all fixed microwave services authorized under Part 101. Modification of the handwritten signature requirement appeared to allow more efficient processing of applications in these services. 22. Comments. Generally, commenters support adopting electronic filing for fixed microwave services. Some commenters, however, express concern regarding the costs of electronic filing and accessibility to computer equipment. Specifically, Rural Common Carrier Microwave Coalition and Pepper and Corazzini argue that small businesses may not have access to the technology necessary to complete and submit an electronic filing. 23. Discussion. The rules already provide for electronic filing for private operational fixed applicants. Further, we have since amended the rules to allow electronic filing by all common carrier applicants. Therefore, no action on this issue is necessary. Procedures for electronic filing in both the common carrier and private operational fixed services will be implemented by Public Notices appearing in the Federal Register. Upon implementation of electronic filing procedures, we plan to provide applicants and licensees computer software and technical support in order to facilitate a smooth transition to a paperless process. With respect to the issue of continuing to allow paper filings, we note that while our ultimate goal is to eliminate, to the greatest extent possible, the filing of paper applications, we will permit applicants to file either electronically or by paper until May 31, 1999. This option will accommodate those applicants who may have difficulty converting to an electronic filing process in the near future and provide sufficient time to resolve any unforeseen problems that may arise. B. Operational Requirements 24. Pre-authorization Construction and Conditional Licensing. Currently, private operational fixed applicants can construct point-to-point microwave facilities prior to receipt of an authorization. Common carrier applicants, on the other hand, must obtain an authorization prior to commencing construction and operation. The Point-to-Point Notice proposed allowing applicants to begin construction of facilities after filing an FCC Form 494 ("Application for a New or Modified Microwave Radio Station License Under Part 21"), but prior to receiving a Commission authorization, as long as certain specified conditions were satisfied. In addition, the Point-to-Point Notice discussed the issue of pre-authorization operation raised by McCaw Cellular Communications, Inc. In a Petition for Rulemaking (RM-7861), McCaw proposed that common carrier applicants be allowed to obtain permanent authorizations to construct and operate facilities through procedures used for authorizing temporary fixed facilities. The Point-to-Point Notice listed a number of problems with McCaw's permanent pre-authorization operation plan and tentatively concluded that the public would be better served where staff processing and an initial notice and comment period take place prior to the commencement of operations. It noted that McCaw's goal of expedited service could be achieved by allowing common carrier applicants to begin construction upon filing an FCC Form 494 application, and prior to grant of an authorization. 25. Comments. Most commenters support our proposal to allow pre-authorization construction, but also request authority for operation prior to final license grant. They argue that the Commission should allow the microwave industry to operate as efficiently as possible and eliminate regulatory delays in bringing services to the marketplace. In addition, most commenters encourage the Commission to apply this concept to both common carrier and private operational fixed microwave licensees. 26. Discussion. We agree with those parties who state that pre-authorization construction should be permitted. We will, however, carry our proposal one step farther. We are allowing common carriers to begin station construction, at their own risk, prior to receiving a license or filing a license application. This will allow the microwave industry to operate more efficiently, as it will permit licensees to provide service in an expedited manner and will provide for greater flexibility in coordinating and consolidating construction projects. It also promotes regulatory parity in the treatment of private users and common carriers. 27. We also agree with those parties who state that operation prior to final license grant should be permitted. There are several benefits to allowing applicants to operate conditionally pending final license grant. First, it streamlines the administrative process. Currently, if applicants have a need to operate before they receive their final license, they must file a request for Special Temporary Authority (STA), in addition to the formal license application. By allowing conditional operation for all fixed microwave license applicants, the additional step of seeking an STA is eliminated. As a result, applicants who do not routinely file for STAs are permitted to begin operation more quickly. Second, it would protect the integrity of the Commission's STA process because it would eliminate the need to use STAs in more routine circumstances. Since we are adopting a conditional licensing process, we believe that the STA process should be limited to those circumstances where an applicant needs to operate at a site on a temporary basis or for other truly extraordinary circumstances. We also believe that conditional licensing will allow the microwave industry to operate more efficiently, as it too will provide licensees greater flexibility in coordinating and consolidating construction projects. 28. Under this conditional licensing procedure, an applicant will be allowed to operate while its formal license application(s) is being processed provided that (1) it has successfully completed the frequency coordination process pursuant to Section 101.103(d) of the Commission's Rules; (2) the station's operation will have no significant environmental impact; (3) the application does not include a request for rule waiver and does not propose facilities within 56.3 kilometers of any international border or within a radio "Quiet Zone"; (4) the facilities do not require notification of proposed construction to the Federal Aviation Administration (FAA), or the facilities have been determined by FAA not to pose a hazard to aviation and they comply with Subpart B of Part 17 of the Commission's Rules; and (5) the station's operation is limited to point-to-point transmissions in the 4, 6, 10, 11, 18, and 23 GHz bands. Applicants will be required to certify that they have met these conditions. Once an applicant certifies to all conditions, operations may begin coincident with the filing of the formal application. Further, an applicant must cease such operation immediately upon notification by the Commission. 29. Although we are extending conditional licensing authority to both common carrier and private fixed microwave services generally, we conclude that such authority should not be available for operations in certain frequency bands. The 10.6-10.68 GHz, 17.7-19.7 GHz, and 21.2-23.6 GHz bands are allocated to both Government and non-Government users. As a result, licensing on these frequencies is subject to coordination between the Commission and the National Telecommunications and Information Administration (NTIA). Pending an agreement between the Commission and NTIA, we will not allow conditional licensing in the following frequency bands: (1) the 10.6-10.68 GHz band, (2) the 17.7-19.7 GHz band in the states of Colorado, Maryland, and Virginia, and the District of Columbia, and (3) the 21.2-23.6 GHz band for operations with an effective radiated power (E.R.P.) greater than 55 dBm. We hereby delegate authority to the Wireless Telecommunications Bureau and Office of Engineering and Technology to modify the rule regarding conditional licensing, if appropriate, once the Commission and NTIA have reached an agreement regarding coordination of these frequencies. 30. This conditional license concept is not unique. For example, the Commission uses similar conditional licensing procedures in the Private Land Mobile Services. We conclude that a conditional licensing procedure also is appropriate in the context of fixed microwave services. Section 301 of the Act requires that all persons using any apparatus for the transmission of signals by radio be licensed under the provisions of the Act. Section 309(a) requires the Commission to determine, "in the case of each application filed with it," whether the grant of such application will serve the public interest convenience and necessity. In addition, Section 303(r) provides that the Commission may prescribe such restrictions and conditions as may be necessary to carry out the provisions of the Act. The Act allows us to use our rule making authority to make generic public interest determinations regarding applications. Thus, by rule, we can conditionally authorize operations by granting applications subject to the condition of final Commission review. In this connection, we have on other occasions, enacted rules that provide for conditional operation of a radio station pending the final grant of the application. For example, in 1976, we amended our rules to permit applicants in the Citizens Band Radio Service to engage in temporary operation pending action on their applications. We subsequently adopted a virtually identical procedure for ship stations in the Maritime Services. These precedents provide support for our statutory authority to enact rules providing for conditionally granting such applications, where such procedures would advance significant public interest objectives. 31. Construction Period. Currently, the construction period under Part 21 is eighteen (18) months, and twelve (12) months under Part 94. The Notice proposed reducing the construction period for common carriers from the current 18 months to 12 months except for common carrier point-to-multipoint operations in the 10.6 GHz and 18 GHz bands. This would expedite service to the public and make the general construction requirements for common carriers and private users consistent. 32. Comments. Most of the comments oppose the proposal to reduce the period for construction. For example, GTE states that while it generally desires to place authorized facilities into operation as quickly as possible, the likely result of the proposed reduction in the point-to-point microwave construction period will be an increase in the number of requests for extension of time to complete construction. UTC urges the Commission to conform the construction period for private operational fixed services licensees to the 18 months for which common carriers are currently permitted. TIA/NSMA also recommend adopting an 18-month construction period for all fixed point-to-point licensees, noting conditions beyond the licensee's control, often delay the actual period for construction by 6 months and that an additional 6 months is unlikely to have an adverse impact on the public interest. 33. Discussion. The commenters have convinced us that an 18-month construction period is reasonable for facilities authorized under Part 101. We recognize that not every licensee will find it necessary to exercise the option of utilizing the pre-authorization construction procedure for expedited operation. An 18-month construction period takes into consideration the fact that some licensees may encounter unforeseen difficulties and delays in constructing facilities. Commenters note that fewer extension-of-time requests would be filed with an 18-month construction period. In addition, an 18-month construction period is consistent with our objective in this proceeding of providing for uniformity whenever possible between common carrier and private operations. We believe an 18-month construction period meets our objectives. Stations must be constructed within 18 months irrespective of whether the licensee is granted license modifications. 34. Definition of In Operation. In the Notice, we proposed to define clearly what constitutes the requirement for common carrier and private stations to be "in operation" (e.g., "constructed") within the specified construction period. We proposed that only the transmission of operational signals is sufficient to satisfy the "in operation" requirement and that neither the capability of transmission nor the transmission of color bars or similar test signals, satisfies the requirement to be "in operation." 35. Comments. Most commenters support the need for clarification of what satisfies the "in operation" requirement in the Commission's Rules. Digital Microwave and Wincomm, Inc., however, raise a separate concern as to when operational traffic should be required to commence, arguing that once a licensee has undergone the effort and expense of constructing an authorized microwave facility, its license should not be subject to forfeiture simply because the station does not transmit operational traffic. Wincomm, Inc., which is developing a nationwide network of Multiple Address Systems (MAS) for the purpose of providing a communications private carrier service, contends that the proposed definition reflects an outmoded view of the types of services offered by Commission licensees, and that the definition is overly restrictive to those licensees offering communications services to others. 36. Discussion. The purpose of a construction requirement is to reduce the filing of speculative applications by entities that have no real intention of implementing communications systems and to avoid the potential for warehousing spectrum. Based on the record developed in this proceeding, we are defining "in operation" in terms that will provide licensees maximum flexibility to meet service demands and to fully utilize the assigned spectrum. We will consider a station authorized under this part to be "in operation" when construction is completed and the station is capable of providing service. After investing time and financial resources in installing such microwave facilities, we believe licensees will have sufficient incentive to deploy operational traffic as soon as possible. Thus, we believe this revised definition provides the relief sought by those commenters that argue that the initial proposed "in operation" definition is too restrictive for those entities dependent upon market conditions for service subscriptions. Additionally, concerns about the warehousing of spectrum are alleviated under Sections 101.65(d) and 101.305(d), which provide for the forfeiture of a license when a licensee fails to transmit operational traffic during any twelve consecutive months after construction is completed. 37. Transmitter Restrictions. Part 21 prohibits the licensing or use of common carrier microwave transmitters for non-common carrier communication purposes. In the Notice, we proposed to carry over this restriction regarding the use of licensed microwave facilities to Part 101. 38. Comments. Several parties recommend that the Commission eliminate this rule entirely, advocating that the restriction on non-common carrier operations on Part 21 microwave transmitters provides no benefits to licensees and that the recent record in communication services proceedings supports the lifting of the restriction. For example, UTC urges modification of the corresponding provisions in Part 101 in order to conform with the overall consolidation of the common carrier and private microwave rules and the actual practices of communications common carriers. GTE favors maximum flexibility and supports the amendment of applicable provisions in Part 101. In addition, commenters argue that the concept of dual use is not unique, but one which is in practice and accepted by the Commission, noting that Section 90.185 already permits multiple licensing, by two or more eligible persons, of radio transmitting equipment in the private land mobile radio service. 39. Discussion. We are eliminating the restriction that prohibits the use of transmitters used in common carrier stations from being used for non-common carrier purposes. Licensees who operate common carrier stations will be able to provide private services at the same location without having to construct duplicative facilities. This action will promote economic efficiencies by reducing construction and operating costs associated with operating separate facilities. Further, this is consistent with our recent action of eliminating a similar restriction in Part 22 of the rules. 40. Leasing Excess Capacity. Under Part 94, licensees may lease excess capacity to common carriers for their own internal use but not for carrying customer traffic. We proposed to carry this restriction over under Part 101. 41. Comments. A number of commenters note that improved transmission techniques and increased transmission rates have created substantial efficiencies in private systems, thereby leaving them with extra transmission capacity. Rather than letting this capacity remain underutilized, they argue that private operational fixed service licensees should be allowed to lease this capacity to common carriers for their customer traffic. Further, these commenters contend that this offering would not change the status of the private carriers to that of a common carrier, since private licensees would still have the discretion to discriminate in service offerings and contract rates to their common carrier customers. 42. Discussion. In the Further Notice of Proposed Rulemaking in PR Docket No. 83- 426, the Commission considered whether it should allow private licensees to lease capacity on their systems to common carriers for the transmission of common carrier communications. The Commission terminated that proceeding, however, because the record had become stale and therefore a decision could not be rendered based on the existing record. We are declining to modify Section 101.135 to allow private users to lease excess capacity to common carriers to carry common carrier traffic. If any person is interested in further pursuing this issue, we remain open to doing so; however, further inquiry would be necessary before action could be taken. 43. We note, however, that with the increased flexibility we are adopting today, as described in paragraph 36 above, private licensees who desire to carry common carrier traffic as well as internal communications, simply may become a common carrier licensee. Under new Part 101, little administrative burden is imposed on private operational fixed licensees that choose to become common carriers in order to transmit common carrier customer traffic. An existing private operational fixed licensee operating on a frequency(ies) shared with common carriers, i.e., frequencies in the 4, 6, 10, 11, 18, 31, and 38 GHz bands, electing common carrier status would notify the Commission of its change in status by filing a Form 430 noting in Item 6 of the form a change to common carrier status and by filing appropriate tariff information consistent with Part 61 of our rules. After the elimination of the Form 430, licensees changing status should use our license application replacement form. A filing fee will not be required to complete this transaction under Part 101. Private operational fixed licensees operating on exclusive operational fixed service frequencies, i.e., frequencies in the 900 MHz, 2.5, 12, and 23 GHz bands, must either request a waiver to operate as a common carrier on private operational fixed frequencies or file modification applications to use shared frequencies. In this way, our database will accurately reflect those stations that are being used for common carrier purposes. 44. Multiple Address Systems (MAS). In the Notice, we proposed to continue to define Multiple Address Systems as currently found in Part 94 (i.e., each master station must serve at least four remotes). 45. Comments. The Association American of Railroads (AAR) states that the topography along railroad right-of-ways sometimes prevents propagation to four remotes, and, therefore, the definition should be revised so that master stations serving more than one remote would qualify as MAS systems. CellNet supports AAR's proposal and requests that it be made applicable to all licensees. UTC contends AAR's request is beyond the scope of this proceeding and therefore should not be adopted. The proposal, in its view, would be an extremely inefficient use of MAS spectrum. In addition, UTC argues that the unique circumstances cited by AAR can be satisfied by using point-to-point frequencies and that this issue was considered in PR Docket No. 87-5. 46. CellNet also requests that we modify the MAS rules so that its system consisting of a central control system and a number of ancillary or "mini-master" stations, each operating on a separate subfrequency can operate without a waiver. According to CellNet, it has designed an MAS system to operate on multiple subfrequencies within an assigned 12.5 kHz or 25 kHz MAS channel. All of the subfrequencies combined operate within the emission mask limits specified for the MAS spectrum. 47. Discussion. The issue of the number of remote sites that each MAS system must serve was discussed in PR Docket No. 87-5. In that proceeding, the Commission noted that there are many frequencies available for point-to-point operations and only a limited number available for point-to-multipoint operations, and that using MAS frequencies to provide essentially point-to-point communications is spectrally inefficient. The Commission concluded that MAS frequencies are to be used to satisfy point-to-multipoint needs, not communication requirements that can be satisfied by point-to-point frequencies. There is nothing in the record to support changing this policy. Accordingly, we are declining to lower the required number of remotes. Applicants that need to serve fewer locations should apply for point-to-point frequencies. 48. The Notice did not specifically address the issue of MAS systems operating on subfrequencies raised by CellNet. Nevertheless, one of our continuing objectives is to provide more flexible rules, so that new technologies and different system designs can be licensed to provide valuable services to the public. It appears CellNet has found a novel way of employing its MAS spectrum. Further, its system design poses no greater threat of interference to other licensed systems than if it were operated in the "conventional" mode. Finally, no party opposed CellNet's ex parte request. Therefore, we are modifying the rules to permit subfrequency operations in the MAS band. We will not apply the four-remote standard to individual "mini master" stations that operate on subfrequencies. Rather, we will look at the entire "system." This will ensure efficient use of the limited MAS spectrum, while at the same time allowing flexibility to accommodate new technologies and unique systems. C. Technical Standards 49. Automatic Transmitter Power Control. ATPC is a feature of microwave radios that automatically adjusts transmitter output power based on path fading detected at the far- end receiver(s). In the Emerging Technology proceeding, the Commission stated that ATPC radios are permitted up to a 3 dB increase in power, and encouraged industry groups to explore in greater detail under what circumstances ATPC should be authorized and whether a greater increase in power would be appropriate. To obtain additional information, we requested comments in the Notice on whether to implement TIA's recommendations for ATPC in Part 101 and what changes, if any, would have to be made in our current licensing scheme. 50. Comments. Parties commenting on this issue all agree that the Commission's rules should be modified to authorize explicitly ATPC. A few commenters, however, raise concerns about the coordination of ATPC systems. Although not opposed to the use of this technology, Pacific Bell, Nevada Bell and Pacific Bell Mobile Services (Pacific Companies) note there is confusion among ATPC users and frequency coordinators over how to use ATPC and the acceptable relationship between the various power levels identified in TIA Bulletin 10. The Pacific Companies propose that ATPC coordinated transmitter power always be set 10 dB below maximum power, or for step-type ATPC transmitters, the step level be used if it is less than 10 dB. In its comments, Comsearch notes that industry is not asking to exceed authorized power or to exceed Equivalent Isotropically Radiated Power (EIRP) limitations. Rather, industry requests permission to operate ATPC transmitters at power lower than the authorized maximum level. Comsearch further states that current rules require power to be maintained near as practical to the input or output level authorized (Section 21.107(c)), or within in 3 dB of authorized EIRP (Section 94.45 (a)(10)). Since ATPC transmitters typically operate at levels 6 to 10 dB below maximum power, such operations may be interpreted as violations of the rules. According to Comsearch, there should be no restriction on operating below authorized power. 51. TIA/NSMA, in reply comments, contend Bulletin 10-F guidelines allay all of the concerns expressed by the Pacific Companies and others. They contend interference problems are unlikely. 52. Discussion. We are adopting rules authorizing ATPC for both common carrier and private operational fixed licensees. The use of ATPC transmitters should improve service reliability without increasing the probability of interference. As we envision the technology, systems normally will operate at power levels substantially less than the maximum power level of the transmitters. When a system experiences a deep fade, the ATPC circuitry will increase the transmitter output power to compensate for the fade. We note that some existing systems currently employ the technology, and to date, the Commission has received no reports of any interference to other operating point-to-point microwave radio systems as a result of ATPC operation. 53. In modifying our rules to specifically authorize the use of ATPC transmitters, we will require applicants to notify potentially affected parties that ATPC transmitters will be used and include on the coordination notice a value for each of the following: maximum transmit power, coordinated transmit power, and nominal transmit power. The inclusion of this information should eliminate the concerns noted by the Pacific Companies. For the purpose of licensing such transmitters, applicants are required to specify the maximum EIRP on their application(s). By using this power level as the authorized power and revising our rules to permit station operation at less than authorized power, we avoid the need to change our databases, license format and application forms. 54. Transmitter Power Limitations. In addition to proposing to merge the applicable transmitter power tables from Parts 21 and 94, we also proposed to eliminate the values for maximum allowable transmitter power, but retain the values for EIRP. We proposed to raise the maximum EIRP to 55 dBW for all point-to-point microwave bands from 4 GHz to 40 GHz, to provide for increased path reliability on long paths and to set a common standard for all bands. 55. Comments. Commenters generally favor establishing a maximum EIRP of 55 dBW for point-to-point microwave bands from 4 GHz to 40 GHz. For example, TIA/NSMA argue that the current 50 dBW limit for some bands adversely affects reliability on long paths, and that this limit could cause frequency congestion in the lower 6 GHz band if a common standard is not established. They contend that a 55 dBW value is better than the current 50 dBW limitation because of the added reliability. E.F. Johnson urges the Commission to review its proposal to determine the extent to which potential interference will increase. Digital Microwave Corporation (DMC) suggests that eliminating the maximum transmitter power level column from table of proposed Section 101.113 will impact our equipment authorization program. 56. In response to E.F. Johnson's concern TIA/NSMA point out that E.F. Johnson did not provide supporting documentation for its view, and note that the Commission's proposal is consistent with US and international standards and is designed to prevent interference. TIA/NSMA also reiterate their earlier comments that current limitations restrict system operators ability to meet required path reliability. 57. Discussion. We are adopting 55 dBW as the maximum EIRP limit for all point- to-point microwave operations for the bands 4 GHz to 40 GHz. The current limitations often force engineering compromises in some bands, which deprive the public of optimum levels of service. Raising the maximum power permitted will give users additional flexibility to design microwave networks to overcome adverse terrain and atmospheric conditions without the necessity of requesting a waiver of the current power limitations. Further, there is no evidence that increasing the maximum power limit for these bands as proposed will increase the potential for harmful interference. Generally, it is industry practice to use no more power than essential to provide a quality service. Additionally, each applicant must coordinate its planned frequency usage before filing for an authorization. 58. Contrary to DMC's concerns, the elimination of the maximum transmitter power level column in Section 101.113 does not alter the equipment authorization process. We have previously stated that "[b]ecause of differences in transmitting equipment, the specification which is most appropriate is the one which includes every gain and attenuation in the transmission system, and provides the greatest flexibility in systems design." Although we are eliminating any reference to transmitter power in the table of Section 101.113, we are not deleting the requirement for equipment manufacturers to have their transmitters type accepted or type approved pursuant to Part 2, Subpart J of our rules. 59. Minimum Path Length. The Notice contained an equation for deriving the maximum EIRP permitted over paths shorter than those specified in Section 101.143(a). The intent of the rule is to limit the power available on short paths to that necessary to provide reliable communications. Additionally, this rule would preserve the lower frequency bands for use on longer paths, and would encourage the use of the higher frequency bands whenever possible. 60. Comments. AT&T and TIA/NSMA complain that the Commission's equation sharply reduces the EIRP for paths just under the minimum specified in Section 101.143(a), and therefore would not allow sufficient power for the provision of reliable service. As an example, AT&T notes that if the path length is 17 km or more Section 101.113(c) allows an EIRP of 55 dBW for frequencies between 3.7 GHz and 11.7 GHz. If the path is a 0.1 km less, the equation limits the EIRP to 30 dBW. This significant difference in levels makes the shorter path less reliable and more susceptible to interference. AT&T asserts this problem can be avoided by revising the equation to cause the reduction in maximum EIRP to be more gradual as the path becomes shorter. TIA/NSMA agree with AT&T, but propose another equation. 61. In reply comments, Comsearch agrees with both AT&T and TIA/NSMA's conclusion regarding our proposed formula, but does not agree with either of the suggested solutions. It recommends adopting a different equation. TIA/NSMA, in their reply comments, support adopting Comsearch's proposed equation. They state that this equation accomplishes the Commission's goals and allows users to install shorter paths without having to reduce power precipitously. 62. Discussion. We have reviewed all of the proposed equations. While each addresses the issue of a sharp drop in the allowable EIRP at distances just below the limit specified in the rules, they all appear to permit EIRP levels above that required for reliable communications at certain distance ranges. For instance, for paths in the range of 5.4 km to about 15 km, the equation supplied by TIA/NSMA yields the better results. Below 5.4 km, a more favorable result is obtained from Comsearch's formula. In reaching a decision on this matter, we are guided by our objective of encouraging the use of higher frequency bands for short paths. We believe Comsearch's equation more closely meets this objective (e.g., the equation encourages licensees to use frequencies in the higher point-to-point microwave bands to satisfy paths of lengths less than 5.4 km). Therefore, we are adopting the Comsearch equation. 63. Frequency Coordination. To promote symmetrical regulatory treatment, we proposed to conform the current frequency coordination procedures and standards to the TIA industry standards, and apply those same coordination procedures and interference standards to all bands for both private and common carrier fixed microwave services. 64. Comments. Commenters overwhelmingly support applying coordination procedures and standards, consistent with TIA recommendations, to all frequency bands for both private and common carrier fixed microwave services. There is some confusion, however, as to how the new rule would apply to certain operations. For example, several parties suggest that frequency coordination be required for entities holding STAs and blanket licenses, and that oral responses to prior coordination notices be confirmed in writing within 48 hours. Additionally, a number of commenters oppose adopting Section 101.103(d)(2)(xii) in its present form. They argue parties should not be permitted to hold growth channels up to six months without demonstrating a need for them if another entity is unable to clear another channel. 65. Discussion. Based on the comments, we are adopting the TIA industry standards and our proposal to apply the same coordination procedures and interference standards to both common carrier and private operational fixed users. Common procedures and standards will simplify the rules and lead to economies of scale in microwave equipment and thus lower equipment costs. We have revised the language of Section 101.103(a) to identify clearly when the coordination procedures and standards apply. 66. We concur with those commenters that argue reserve growth channels should be made available to another applicant upon a demonstration of need. With the requirement to accommodate displaced licensees in many of the bands governed by Part 101, it is paramount that we provide an environment where spectrum will not remain idle, particularly when a legitimate communications requirement exists. Accordingly, we are revising Section 101.103(d)(2)(xii) so that any party needing to hold growth channels for longer than six months must demonstrate a need for them in the event that another entity is unable to clear another channel. 67. Antenna Standards. The Notice proposed to consolidate all antenna standards into one rule section (Section 101.115) without proposing any significant changes to the standards. 68. Comments. Some commenters indicate that there is an inconsistency between Subsections 101.115 (b) and (c) regarding applicable antenna standards for antennas used in the bands 932.5 MHz and 2500 MHz. They point out that proposed Subsection 101.115(c) only applies the more stringent standard from 1850 MHz to 1990 MHz, while the looser standard of Subsection 101.115(b) would apply to the band 1990 MHz to 2500 MHz. To preclude the use of inefficient antennas in the bands above 1990 MHz, commenters suggest that the more stringent requirement of Subsection 101.115(c) become the operative standard for spectrum above 1990 MHz. 69. TIA/NSMA argue that the key components for making the proposed antenna standards effective, are having a definition of congested area, and guidelines for when a category A or B antenna should be used. They contend that the Commission should redefine congested areas. They also request that certain types of antenna polarizations, e.g., circular polarization, be prohibited. 70. Discussion. As requested, we are revising Subsections 101.115(b) and (c) to eliminate the inconsistency in the proposed antenna standards. Revised Subsection 101.115(b) sets forth standards for antennas for stations operating below 932.5 MHz and Subsection 101.115(c) applies to station antennas operating at 932.5 MHz and above. 71. The record in this proceeding is insufficient to revise the term "congested areas." To redefine this term, a number of parameters must be considered, e.g, density of microwave paths per area, the size of such area, and the economic impact of requiring category A antennas solely on the basis of a station being located in a congested area. These issues were not sufficiently addressed in the record. Accordingly, we are taking no action on this matter at this time. 72. System designers frequently take advantage of signal polarization properties to minimize frequency conflicts and increase bandwidth capacity. Permitting the use of other types of polarization could reduce frequency reuse and ultimately the capacity of microwave systems. Accordingly, we are amending Section 101.117 to specify only horizontal and vertical polarization. 73. Channel Loading. The Notice proposed to carry forward into Part 101 the current Parts 21 and 94 transmitter capacity and loading requirements for point-to-point microwave radio systems operating in the 3700-4200 MHz, 5925-6425 MHz , 6525-6875 MHz, 10550- 10680 MHz and 10700-11700 MHz bands. 74. Comments. API asserts that the minimum traffic loading payload capacities for bandwidths greater than 10 MHz contained in proposed Section 101.141(a)(3) are excessive and inflexible, especially as they apply to private operational fixed service systems. API states that private operational fixed systems channel loading often will vary from path to path. Under the proposed rule, therefore, these systems would require a mix of facilities to comply. It argues that this mix of equipment imposes additional cost for personnel training and spare part inventories. Additionally, according to API, the required loading percentage should be low enough so that licensees' channel needs do not fall between standard equipment channel sizes. Finally, TIA/NSMA and WMC suggest the proposed rule section also include loading standards for analog radio systems. 75. In reply comments, TIA/NSMA agree with API about the inflexibility of the loading standards. TIA/NSMA propose language they believe will allay API's concerns and recommend that all loading standards be reduced to 25 percent of pay load capacity. 76. Discussion. In the Second Report and Order in ET Docket No. 92-9, we addressed the issue of minimum channel loading and data rate requirements for channels of 10 MHz or greater. There we stated: We concur with the consensus of the commenters that many existing 2 GHz licensees may not easily meet the existing and proposed loading standards, .... However, we also want to ensure the channels are used efficiently as possible in a timely manner. Therefore, we are maintaining our existing voice channel loading requirements and are adopting our proposed digital loading standards for channels of 10 MHz and greater bandwidth, but will liberally waive loading requirements in accommodating displaced 2 GHz licensees in the bands above 3 GHz. (Emphasis added.) We also adopted various bandwidth channelization plans, expecting that most channel loading requirements could be satisfied under one of the choices. 77. These actions were intended to promote efficient utilization of the spectrum and to accommodate those licensees displaced by future PCS licensees. Reducing the minimum loading requirements to 25 percent of pay load capacity as suggested, potentially could result in a significant amount of spectrum going unused because some licensees would be unable to sufficiently load the facilities. This is unacceptable given the anticipated expanded use of Part 101 spectrum. Therefore, we are not modifying our channel loading requirements. Consistent with API, TIA/NSMA and WMC requests, however, we have modified Section 101.141 to include minimum analog channel loading standards. D. Developmental Authorizations 78. In the Notice, we proposed to eliminate the requirement that applicants report any patents applied for as a result of a developmental authorization. We also noted that Part 101 would continue the prohibition against commercial operation under a developmental grant for common carriers, and would extend the prohibition to private radio operators. 79. Comments. Generally, the commenters support the elimination of the requirement to file patent information. There was opposition, however, to the prohibition against providing commercial operations under developmental authorizations. Digital Microwave Corporation (DMC), for example, argues that developmental licensees under the Part 101 rules should be permitted to engage in commercial service operations, similar to the authority granted pursuant to Section 5.202(j). 80. Discussion. The filing of patent information as it applies to developmental authorizations, is duplicative and unnecessary. Any patent resulting from a developmental operation would require approval of the U.S. Patent and Trademark Office and information related thereto becomes a part of the public record and would be available for public inspection. Further, such patent information generally is not germane to our deliberations. The rules require holders of development authorizations to submit reports regarding their developmental operations. From these submissions, we can ascertain whether the authorizations are being properly used and the utility of the subject operations. Therefore, we are eliminating the patent filing requirement. With respect to allowing commercial operations under developmental grants, DMC's example does not convince us that we should allow a commercial operation, for market studies or otherwise, under developmental authorizations. We continue to believe the purpose of developmental authorizations should be for the development of engineering and operational data or techniques, not for commercial purposes. E. Transition Period 81. As described above, there are substantive differences between the new Part 101 application and licensing guidelines, operational requirements, and technical rules, and the corresponding Part 21 and 94 rules. In order to provide sufficient time for the public to review and implement the changes in the fixed microwave services rules adopted herein, the new Part 101 will become effective August 1, 1996. All subject microwave systems authorized prior to that date, and applications filed prior to that date will be grandfathered indefinitely and will be afforded co-primary status with all subsequent systems authorized pursuant to the provisions of the new Part 101. This means that licensees of these systems will not be required to conform their operations to the new interference protection criteria, channel loading requirements, and antenna performance standards. New systems authorized pursuant to Part 101 and these grandfathered operations are afforded equal interference protection under these revised rules. F. Thirty-Day Public Notice Requirement 82. Additionally, Section 403(j) of the Telecommunications Act of 1996 eliminates the thirty-day public notice and comment period for private fixed point-to-point microwave applications contained in Section 309(b)(2)(A) of the Act, 47 U.S.C.  309(b)(2)(A), in order to provide expedited licensing for this service. Accordingly, we are amending Section 1.962(a) of the rules, 47 C.F.R.  1.962(a), to implement this provision of the Telecommunications Act of 1996 and to increase the efficiency of our licensing process for the subject applications. IV. CONCLUSION 83. In this Report and Order, we consolidate the rules for the common carrier and private operational fixed services contained in Parts 21 and 94 into a new Part 101. These new rules reflect a comprehensive restructuring in the regulatory requirements and policies of the fixed microwave services. Part 101 streamlines and simplifies the rules, reduces regulatory burdens, encourages more efficient use of the microwave spectrum, and fosters economies of scale in microwave equipment production. In addition, these rules allow licensees to compete more on price and quality of service rather than on regulatory gamesmanship. V. ADMINISTRATIVE MATTERS Final Regulatory Flexibility Analysis 84. Need and purpose of this action. This Report and Order simplifies the rules for the common carrier and private operational fixed services, currently contained respectively in Parts 21 and 94 of the Commission's rules, and consolidates those rules into a new Part 101. These new rules eliminate unnecessary information collection requirements, eliminate redundancy, remove obsolete language, and promote the public interest. 85. Summary of issues raised by the public. Several commenters suggested modifications to some of the Commission's proposals. As a result of these comments, we have made modifications to the proposed rules as appropriate. The specific suggestions and modifications are discussed in the paragraphs above. 86. Significant alternatives considered. The Notices of Proposed Rule Making in the two subject proceedings offered numerous proposals. The commenters overwhelmingly supported the majority of the proposed rule changes. Several commenters suggested modifications to some of the Commission's proposals. Many of the suggested modifications are incorporated in the final rules. The regulatory burdens which we have retained are necessary to fulfill our duties under the Communications Act of 1934, as amended. We will continue to examine alternatives in the future with the objective of eliminating unnecessary regulations and minimizing economic impact on small business entities. VI. ORDERING CLAUSES 87. Authority for issuance of this Report and Order is contained in Sections 4(i) and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C. Sections 154(i) and 303(r). 88. Accordingly, IT IS ORDERED that Part 21 of the Commission's Rules IS HEREBY AMENDED, Part 94 IS HEREBY REMOVED AND RESERVED FOR FUTURE USE, and Part 101 IS HEREBY ADOPTED as specified in Appendix A. 89. IT IS FURTHER ORDERED that the Part 101 of the Commission's Rules and Regulations as shown in Appendix A will become effective August 1, 1996. 90. IT IS FURTHER ORDERED that the rule making proceedings in WT Docket No. 94-148, CC Docket No. 93-2 ARE HEREBY TERMINATED and the McCaw Petition for Rulemaking, RM-7861, IS HEREBY DENIED. 91. IT IS FURTHER ORDERED that following coordination with the National Telecommunications and Information Agency, the Chiefs of the Wireless Telecommunications Bureau and Office of Engineering and Technology are delegated authority to issue orders modifying the limitations noted in paragraph 28 above, and Section 101.31(e) of the rules, regarding the use of conditional licensing in certain frequency bands. FEDERAL COMMUNICATIONS COMMISSION William F. Caton Acting Secretary FINAL RULES Parts 1, 2, 21 and 94 of Chapter I of Title 47 of the Code of Federal Regulations are amended as follows: PART 1 - PRACTICE AND PROCEDURE 1. The authority citation for Part 1 continues to read as follows: AUTHORITY: 47 U.S.C. 151, 154, 303, and 303(j) unless otherwise noted. 2. Section 1.77 is amended by adding a new paragraph (i) to read as follows:  1.77 Detailed application procedures; cross references * * * * * (i) Rules governing applications for authorizations in the Common Carrier and Private Radio terrestrial microwave services are set out in part 101 of this chapter. 3. Section 1.741 is revised to read as follows:  1.741 Scope. The general rules relating to applications contained in  1.742 through 1.748 apply to all applications filed by carriers except those filed by public correspondence radio stations pursuant to Parts 80, 87, and 101 of this chapter, and those filed by common carriers pursuant to Part 25 of this chapter. Parts 21 and 101 of this chapter contain general rules applicable to applications filed pursuant to these parts. For general rules applicable to applications filed pursuant to parts 80 and 87 of this chapter, see such parts and subpart F of this part. For rules applicable to applications filed pursuant to part 25, see said part. 4. Section 1.761 is revised to read as follows:  1.761 Cross reference. Specific types of applications under Title III of the Communications Act involving public correspondence radio stations are specified in parts 23, 80, 87, and 101 of this chapter. 5. Section 1.825 is amended by revising paragraph (b) to read as follows:  1.825 Random selection procedures for Digital Electronic Message Service. * * * * * (b) Petitions to deny applications for digital electronic message service authorizations, and responsive pleadings, shall be filed prior to conducting the random selection, pursuant to the requirements of  101.43 of this chapter. Following the random selection, petitions against tentative selectee's applications shall be resolved by the Commission. 6. Section 1.901 is revised to read as follows:  1.901 Scope. In the case of any conflict between the rules set forth in this subpart and the rules set forth in part 13 of this chapter or the rules set forth for specific services in parts 80 through 101 of this chapter, the rules in this subpart shall govern. 7. Section 1.924 is amended by revising paragraph (b)(2)(ii) to read as follows:  1.924 Assignment or transfer of control, voluntary and involuntary. * * * * * (b)(1) * * * (2) * * * (ii) FCC Form 402. For assignment of station authorizations in the Private Operational Fixed Microwave Service (Part 101 of this chapter). Attached thereto shall be an executed Form 1046 or a signed letter from proposed assignor stating the assignor's desire to assign the current authorization in accordance with the rules governing the particular service involved. * * * * * 8. Section 1.926 is amended by revising paragraph (a)(6) to read as follows:  1.926 Application for renewal of license. (a) * * * (6) Renewal of station authorizations in the Private Operational Fixed Microwave Service (Part 101 of this chapter) shall be submitted on such form as the Commission may designate by the public notice in accordance with the provisions of  101.13 of this chapter. * * * * * 9. Section 1.962 is amended by removing paragraph (a)(1) and redesignating paragraphs (a)(2) through paragraphs (a)(7) as paragraphs (a)(1) through (a)(6) respectively to read as follows  1.962 Public Notice of acceptance for filing; petitions to deny applications of specified categories. 10. Section 1.972 is amended by revising paragraphs (a)(1) and (c) to read as follows:  1.972 Grants by random selection. (a) * * * (1) For stations in the following Private Radio Services: Part 80--Stations in the Maritime Services Part 87--Aviation Services Part 90--Private Land Mobile Services Part 95--Subpart F--Personal Radio Services Part 101--Subpart H--Private Operational Fixed Point-to-Point Microwave Service. * * * * * (c) If there are mutually exclusive applications for an initial license for stations subject to part 80 or part 87 of this chapter, or if there are more applications for an initial license in part 90, part 95-subpart F, or part 101- subpart H of this chapter, than can be accommodated on available frequencies, the Commission may process the applications pursuant to a system of random selection. Each such random selection shall be conducted pursuant to an order issued by the Wireless Telecommunications Bureau and under the direction of the Chief of the Bureau. * * * * * PART 2 - FREQUENCY ALLOCATIONS AND RADIO TREATY MATTERS; GENERAL RULES AND REGULATIONS 1. The authority citation for part 2 continues to read as follows: AUTHORITY: Sec. 4, 302, 303, and 307 of the Communications Act of 1934, as amended, 47 U.S.C Sections 154, 302, 303, and 307, unless otherwise noted. 2. Section 2.995 is amended by revising paragraph (a)(2) to read as follows:  2.995 Measurements required: Frequency stability. (a) * * * (2) From -20 to +50 centigrade for equipment to be licensed for use in the Maritime Services under part 80 of this chapter, except Class A, B, and S Emergency Position Indicating Radiobeacons (EPIRBS), and equipment to be licensed for use above 952 MHz at operational fixed stations in all services, stations in the Local Television Transmission Service and Point-to-Point Microwave Radio Service under part 101 of this chapter, and equipment licensed for use aboard aircraft in the Aviation Services under part 87 of this chapter. * * * * * PART 21 - DOMESTIC PUBLIC FIXED RADIO SERVICES 1. The authority citation for Part 21 continues to read as follows: AUTHORITY Secs. 1, 2, 4, 201-205, 208, 215, 218, 303, 307, 313, 314, 403, 404, 410, 602; 48 Stat. as amended, 1064, 1066, 1070-1073, 1076, 1077, 1080, 1082, 1083, 1087, 1094, 1098, 1102; 47 U.S.C. 151, 154, 201-205, 208, 215, 218, 303, 307, 313, 314, 403, 404, 602; 47 U.S.C. 552, 554. 2. Section 21.2 is revised to read as follows:  21.2 Definitions. As used in this part: Antenna power gain. The square of the ratio of the root-mean-square free space field intensity produced at one mile in the horizontal plane, in millivolts per meter for one kilowatt antenna input power to 137.6 mV/m. This ratio should be expressed in decibels (dB). (If specified for a particular direction, antenna power gain is based on the field strength in that direction only.) Antenna power input. The radio frequency peak or RMS power, as the case may be, supplied to the antenna from the antenna transmission line and its associated impedance matching network. Antenna structures. The antenna, its supporting structure and anything attached to it. Assigned frequency. The centre of the frequency band assigned to a station. Authorized bandwidth. The maximum width of the band of frequencies permitted to be used by a station. This is normally considered to be the necessary or occupied bandwidth, whichever is greater. Authorized frequency. The frequency, or frequency range, assigned to a station by the Commission and specified in the instrument of authorization. Authorized power. The maximum power a station is permitted to use. This power is specified by the Commission in the station's authorization. Bandwidth occupied by an emission. The band of frequencies comprising 99 percent of the total radiated power extended to include any discrete frequency on which the power is at least 0.25 percent of the total radiated power. Basic Trading Area (BTA). The geographic areas by which the Multipoint Distribution Service is licensed. BTA boundaries are based on the Rand McNally 1992 Commercial Atlas and Marketing Guide, 123rd Edition, pp. 36-39, and include six additional BTA-like areas as specified in  21.924(b). Bit rate. The rate of transmission of information in binary (two state) form in bits per unit time. BTA authorization holder. The individual or entity authorized by the Commission to provide Multipoint Distribution Service to the population of a BTA. BTA service area. The area within the boundaries of a BTA to which a BTA authorization holder may provide Multipoint Distribution Service. This area excludes the protected service areas of incumbent MDS stations and previously proposed and authorized ITFS facilities, including registered receive sites. Carrier. In a frequency stabilized system, the sinusoidal component of a modulated wave whose frequency is independent of the modulating wave; or the output of a transmitter when the modulating wave is made zero; or a wave generated at a point in the transmitting system and subsequently modulated by the signal; or a wave generated locally at the receiving terminal which when combined with the side bands in a suitable detector, produces the modulating wave. Carrier frequency. The output of a transmitter when the modulating wave is made zero. Communication common carrier. Any person engaged in rendering communication service for hire to the public. Control point. A control point is an operating position at which an operator responsible for the operation of the transmitter is stationed and which is under the control and supervision of the licensee. Control station. A fixed station whose transmissions are used to control automatically the emissions or operations of another radio station at a specified location, or to transmit automatically to an alarm center telemetering information relative to the operation of such station. Coordination distance. For the purpose of this part, the expression "coordination distance" means the distance from an earth station, within which there is a possibility of the use of a given transmitting frequency at this earth station causing harmful interference to stations in the fixed or mobile service, sharing the same band, or of the use of a given frequency for reception at this earth station receiving harmful interference from such stations in the fixed or mobile service. Digital modulation. The process by which some characteristic (frequency, phase, amplitude or combinations thereof) of a carrier frequency is varied in accordance with a digital signal, e.g. one consisting of coded pulses or states. Domestic fixed public service. A fixed service, the stations of which are open to public correspondence, for radiocommunications originating and terminating solely at points all of which lie within: (a) The State of Alaska; (b) The State of Hawaii; (c) The contiguous 48 States and the District of Columbia; or (d) A single possession of the United States. Generally, in cases where service is afforded on frequencies above 72 MHz, radio-communications between the contiguous 48 States (including the District of Columbia) and Canada or Mexico, or radiocommunications between the State of Alaska and Canada, are deemed to be in the domestic fixed public service. Domestic public radio services. The land mobile and domestic fixed public services the stations which are open to public correspondence. Note: Part 80 of this chapter is applicable to the maritime services and fixed stations associated with the maritime services; part 87 of this chapter is applicable to aeronautical services. Earth station. A station located either on the earth's surface or within the major portion of the earth's atmosphere and intended for communications: (a) With one or more space stations; or (b) With one or more stations of the same kind by means of one or more reflecting satellites or other objects in space. Effective radiated power (ERP). The product of the power supplied to the antenna and its gain relative to a half-wave dipole in a given direction. Equivalent Isotropically Radiated Power (EIRP). The product of the power supplied to the antenna and the antenna gain in a given direction relative to an isotropic antenna. This product may be expressed in watts or dB above 1 watt (dBW). Facsimile. A form of telegraphy for the transmission of fixed images, with or without half-tones, with a view to their reproduction in a permanent form. Fixed earth station. An earth station intended to be used at a specified fixed point. Fixed station. A station in the fixed service. Frequency tolerance. The maximum permissible departure by the centre frequency of the frequency band occupied by an emission from the assigned frequency or, by the characteristic frequency of an emission from the reference frequency. The frequency tolerance is expressed as a percentage or in Hertz. Harmful interference. Interference which endangers the functioning of a radionavigation service or of other safety services or seriously degrades, obstructs, or repeatedly interrupts a radiocommunication service. Incumbent. An MDS station that was authorized or proposed before September 15, 1995, including those stations that are subsequently modified, renewed or reinstated. Landing area. A landing area means any locality, either of land or water, including airports and intermediate landing fields, which is used, or approved for use for the landing and take-off of aircraft, whether or not facilities are provided for the shelter, servicing, or repair of aircraft, or for receiving or discharging passengers or cargo. Microwave frequencies. As used in this part, this term refers to frequencies of 890 MHz and above. Multichannel multipoint distribution service. Those multipoint distribution service channels that use the frequency band 2596 MHz to 2644 MHz and associated response channels. Multipoint distribution service. A one-way domestic public radio service rendered on microwave frequencies from a fixed station transmitting (usually in an omnidirectional pattern) to multiple receiving facilities located at fixed points. Multipoint distribution service response station. A fixed station operated at an MDS receive location to provide communications with the associated station in the Multipoint Distribution Service. Necessary bandwidth of emission. For a given class of emission, the width of the frequency band that is just sufficient to ensure the transmission of information at the rate and with the quality required under specified conditions. Note: The necessary bandwidth for an emission may be calculated using the formulas in  2.202 of this chapter. Partitioned service area authorization holder. The individual or entity authorized by the Commission to provide Multipoint Distribution Service to the population of a partitioned service area. Partitioned service area (PSA). The area within the coterminous boundaries of one of more counties or other geopolitical subdivisions, drawn from a BTA, to which an authorization holder may provide Multipoint Distribution Service or the area remaining in a BTA upon partitioning any portion of that BTA. This area excludes the protected service areas of incumbent MDS stations and previously proposed and authorized ITFS stations, including registered receive sites. Private line service. A service whereby facilities for communication between two or more designated points are set aside for the exclusive use or availability for use of a particular customer and authorized users during stated periods of time. Public correspondence. Any telecommunication which the offices and stations, by reason of their being at the disposal of the public, must accept for transmission. Radio station. A separate transmitter or a group of transmitters under simultaneous common control, including the accessory equipment required for carrying on a radiocommunication service. Radiocommunication. Telecommunication by means of radio waves. Rated power output. The term "rated power output" of a transmitter means the normal radio frequency power output capability (Peak or Average Power) of a transmitter, under optimum conditions of adjustment and operation, specified by its manufacturer. Record communication. Any transmission of intelligence which is reduced to visual record form at the point of reception. Reference frequency. A frequency having a fixed and specified position with respect to the assigned frequency. The displacement of this frequency with respect to the assigned frequency has the same absolute value and sign that the displacement of the characteristic frequency has with respect to the centre of the frequency band occupied by the emission. Relay station. A fixed station used for the reception and retransmission of the signals of another station or stations. Repeater station. A fixed station established for the automatic retransmission of radiocommunications received from one or more stations and directed to a specified receiver site. Signal booster station. A low-power repeater station automatically retransmitting on the same frequency as the received signal, and located within the protected service area of a Multipoint Distribution Service station. Standby transmitter. A transmitter installed and maintained for use in lieu of the main transmitter only during periods when the main transmitter is out of service for maintenance or repair. Symbol rate. Modulation rate in bauds. This rate may be higher than the transmitted bit rate as in the case of coded pulses or lower as in the case of multilevel transmission. Television. A form of telecommunication for transmission of transient images of fixed or moving objects. Television STL station (studio transmitter link). A fixed station used for the transmission of television program material and related communications from a studio to the transmitter of a television broadcast station. 3. Section 21.3 is amended by removing paragraph (b), and redesignating paragraph (c) as paragraph (b). 4. Section 21.6 is amended by revising paragraphs (b) and (c) to read as follows:  21.6 Filing of applications, fees, and numbers of copies. * * * * * (b) Applications requiring fees as set forth in part 1, subpart G of this chapter must be filed in accordance with  0.401(b) of this chapter. Applications not requiring fees shall be submitted to: Federal Communications Commission, Washington, DC 20554. (c) All correspondence or amendments concerning a submitted application shall clearly identify the radio service, the name of the applicant, station location, and the Commission file number (if known) or station call sign of the application involved. All correspondence or amendments concerning a submitted application may be sent directly to the Mass Media Bureau. * * * * * 5. Section 21.13 is amended by removing paragraph (f), redesignating paragraph (g) as paragraph (f), and revising paragraphs (a)(6) and (b) to read as follows:  21.13 General application requirements. (a) * * * (6) Show compliance with the special requirements applicable to each radio service and make all special showings that may be applicable (e.g., those required by secs. 21.900, 21.912 and 21.913). (b) Applications filed in the Multipoint Distribution Service shall not cross-reference previously filed material. * * * * * 6. Section 21.15 is amended by revising the introductory text, and paragraphs (c), (d), and (g) to read as follows:  21.15 Technical content of applications. Applications shall contain all technical information required by the application form and any additional information necessary to fully describe the proposed facilities and to demonstrate compliance with all technical requirements of the rules governing the radio service involved (see subparts C, F and K as appropriate). The following paragraphs describe a number of technical requirements. (a) * * * (b) * * * (c) Each application involving a new or modified transmitting antenna supporting structure, passive facility, or the addition or removal of a transmitting antenna, or the repositioning of an authorized antenna for a station must be accompanied by a vertical profile sketch of the total structure depicting its structural nature and clearly indicating the ground elevation (above sea level) at the structure site, the overall height of the structure above ground (including obstruction lights when required, lightning rods, etc.) and, if mounted on a building, its overall height above the building. The proposed antenna on the structure must be clearly identified and its height above-ground (measured to the center of radiation) clearly indicated. Alternatively, applicants in the Multipoint Distribution Service who filed applications on or after September 15, 1995, may provide this information in the MDS long-form application. (d) Each application proposing a new or modified antenna structure for a station (including a passive repeater or signal booster station) so as to change its overall height shall indicate whether any necessary notification of the FAA has been made. Complete information as to rules concerning the construction, marking and lighting of antenna structures is contained in part 17 of this chapter. See also  21.111 if the structure is used by more than one station. * * * * * (g) Applications in the Multipoint Distribution Service filed before September 15, 1995, proposing a new or replacement antenna (excluding omni-directional antennas) shall include an antenna radiation pattern showing the antenna power gain distribution in the horizontal plane expressed in decibels, unless such pattern is known to be on file with the Commission in which case the applicant may reference in its application the FCC-ID number that indicates that the pattern is on file with the Commission. Multipoint Distribution Service applicants who filed applications on or after September 15, 1995 must provide related information in completing an MDS long-form application. * * * * * 7. Section 21.20 is amended by revising paragraph (b)(5) to read as follows:  21.20 Defective applications. * * * * * (b) * * * (5) The application does not certify the availability of the proposed station site. * * * * * 8. Section 21.23 is amended by removing paragraphs (c)(1) and (d), redesignating (c)(2) through (c)(7) as paragraphs (c)(1) through (c)(6), redesignating paragraphs (e) through (g) as paragraphs (d) through (f), and revising the newly redesignated paragraphs (c)(1) introductory text, and (d)(1) to read as follows:  21.23 Amendment of applications. * * * * * (c) * * * (1) If in the Multipoint Distribution Service, the amendment results in a substantial modification of the engineering proposal such as (but not necessarily limited to): * * * * * (d) * * * (1) Any applicant whose application appears on its face to be mutually exclusive with the application being amended, including those applicants originally served under  21.902; * * * * * 9. Section 21.27 is amended by removing paragraph (d). 10. Section 21.31 is amended by removing paragraph (f). 11. Section 21.33 is amended by removing paragraph (a), and redesignating paragraphs (b) through (d) as paragraphs (a) through (c) respectively. 12. Section 21.39 is amended by revising paragraph (d)(3) to read as follows:  21.39 Considerations involving transfer or assignment applications. * * * * * (d) * * * (3) The median date of the applicable commencement dates (determined pursuant to paragraphs (c) (1) and (2) of this section) if the transaction involves two or more stations. (The median date is that date so selected such that fifty percent of the commencement dates of the total number of stations, when arranged in chronological order, lie below it and fifty percent lie above it. When the number of stations is an even number, the median date will be a value half way between the two dates closest to the theoretical median). 13. Section 21.41 is amended by revising paragraphs (b) and (c) to read as follows:  21.41 Special processing of applications for minor facility modifications. * * * * * (b) An application may be considered under the procedures of this section only if: (1) It is in the Multipoint Distribution Service; (2) The cumulative effect of all such applications made within any 60 days period does not exceed the appropriate values prescribed by paragraph (c) of this section; (3) The facilities to be modified are not located within 56.3 kilometers (35 miles) of the Canadian or Mexican border; (4) It is acceptable for filing, is consistent with all of the Commission's rules, and does not involve a waiver request; (5) It specifically requests consideration pursuant to this section; (6) Frequency notification procedures are complied with and a copy of the application has been served on those who also were served under  21.902; and (7) In the Multipoint Distribution Service, the modified facility would not produce a power flux density that exceeds - 73 dBW/m2, pursuant to  21.902 and 21.939 at locations on the boundaries of protected service areas to which there is an unobstructed signal path. (c) The modifications that may be authorized under the procedures of this section are: (1) Changes in a transmitter and existing transmitter operating characteristics, or protective configuration of transmitter, provided that: (i) In the Multipoint Distribution Service, any increase in EIRP is one and one-half dB or less over the previously-authorized power value; or (ii) The necessary bandwidth is not increased by more than 10% of the previously authorized necessary bandwidth. (2) Changes in the height of an antenna, provided that: (i) In Multipoint Distribution Service, any increase in antenna height is less than 3.0 meters above the previously authorized height; and (ii) The overall height of the antenna structure is not increased as a result of the antenna extending above the height of the previously authorized structure, except when the new height of the antenna structure is 6.1 meters or less (above ground or man-made structure, as appropriate) after the change is made. (3) Change in the geographical coordinates of a transmit station by ten seconds or less of latitude, longitude or both, provided that when notice to the FAA of proposed construction is required by part 17 of this chapter for antenna structure at the previously authorized coordinates (or will be required at the new location) the applicant must comply with the provisions of  21.15(d). * * * * * 14. Section 21.42 is amended by removing paragraph (c)(7), redesignating paragraph (c)(8) as paragraph (c)(7), and revising paragraphs (a), (b)(1), (b)(4), and (c)(3) to read as follows:  21.42 Certain modifications not requiring prior authorization. (a) Equipment in an authorized radio station may be replaced without prior authorization or notification if: (1) The replacement equipment is identical (i.e., same manufacturer and model number) with the replacement equipment; or (2) The replacement transmitter, transmitting antenna, transmission line loss and/or devices between the transmitter and antenna, or combinations of the above, do not change the EIRP of a station in any direction. (b) Licensees of fixed stations in the Multipoint Distribution Service may make the facility changes listed in paragraph (c) of this section without obtaining prior Commission authorization, if: (1) The Multipoint Distribution Service licensee serves a copy of the notification described in paragraph (b)(3) of this section on those who were served under  21.902, and * * * * * (4) In the Multipoint Distribution Service, the modified facility would not produce a power flux density at the protected service area boundary that exceeds - 73 dBW/m2, pursuant to  21.902 and 21.939. (c) * * * (3) Change to an antenna when the new antenna conforms with  21.906 and the EIRP resulting from the new antenna does not exceed that resulting from the previously authorized antenna by more than one dB in any direction. * * * * * 15. Section 21.43 is amended by revising paragraph (a) to read as follows:  21.43 Period of construction; certification of completion of construction. (a) Except for Multipoint Distribution Service station licenses granted to BTA and PSA authorization holders, each license for a radio station for the services included in this part shall specify as a condition therein the period during which construction of facilities will be completed and the station made ready for operation. Construction may not commence until the grant of a license, and must be completed by the date specified in the license as the termination date of the construction period. Except as may be limited by  21.45(b) or otherwise determined by the Commission for any particular application, the maximum construction period for all stations licensed under this part shall be a maximum of 12 months from the date of the license grant. * * * * * 16. Section 21.45 is amended by revising paragraphs (a) and (c) to read as follows:  21.45 License period. (a)(1) Licenses for stations in the Multipoint Distribution Service will be issued for a period not to exceed 10 years, except that licenses for developmental stations will be issued for a period not to exceed one year. The expiration date of developmental licenses shall be one year from the date of the grant thereof. Unless otherwise specified by the Commission, the expiration of regular licenses shall be on the following date in the year of expiration. Multipoint Distribution Service--May 1. (2) When a license is granted subsequent to the last renewal date of the class of license involved, the license shall be issued only for the unexpired period of the current license term of such class. * * * * * (c) Upon the expiration or termination of any station license, any related conditional authorization, which bears a later expiration date, shall be automatically terminated concurrently with the related station license, unless it shall have been determined by the Commission that the public interest, convenience or necessity would be served by continuing in effect said conditional authorization. 17. Section 21.100 is revised to read as follows:  21.100 Frequencies. The frequencies available for use in the service covered by this part are listed in subpart K. Assignment of frequencies will be made only in such a manner as to facilitate the rendition of communication service on an interference-free basis in each service area. Unless otherwise indicated, each frequency available for use by stations in this service will be assigned exclusively to a single applicant in any service area. All applicants for, and licensees of, stations in this service shall cooperate in the selection and use of the frequencies assigned in order to minimize interference and thereby obtain the most effective use of the authorized facilities. In the event harmful interference occurs or appears likely to occur between two or more radio systems and such interference cannot be resolved between the licensees thereof, the Commission may, after notice and opportunity for hearing, require the licensees to make such changes in operating techniques or equipment as it may deem necessary to avoid such interference. 18. Section 21.101 is amended by removing paragraph (b), redesignating paragraph (c) as paragraph (b), and revising paragraph (a) to read as follows:  21.101 Frequency tolerance. (a) The carrier frequency of each transmitter authorized in these services shall be maintained within the following percentage of the reference frequency except as otherwise provided in paragraph (b) of this section or in the applicable subpart of this part (unless otherwise specified in the instrument of station authorization the reference frequency shall be deemed to be the assigned frequency): Frequency tolerance Frequency range for fixed stations (MHz) (percent) 2,150 to 2,162 /1/ /2/ 0.001 2,596 to 2,680 /2/ 0.005 /1/ Beginning Aug. 9, 1975, this tolerance will govern the marketing of equipment pursuant to  2.803 and 2.805 of this chapter and the issuance of all authorizations for new radio equipment. Until that date new equipment may be authorized with a frequency tolerance of 0.03 percent in the frequency range 2,200 to 10,500 MHz and equipment so authorized may continue to be used for its life provided that it does not cause interference to the operation of any other licensee. Equipment authorized in the frequency range 2,450 to 10,500 MHz prior to June 23, 1969, at a tolerance of 0.05 percent may continue to be used until February 1, 1976 provided it does not cause interference to the operation of any other licensee. /2/ Beginning November 1, 1991, equipment authorized to be operated in the frequency bands 2150-2162 MHz, 2596-2644 MHz, 2650-2656 MHz, 2662-2668 MHz, and 2674-2680 MHz for use in the Multipoint Distribution Service shall maintain a frequency tolerance within ñ1 KHz of the assigned frequency. * * * * * 19. Section 21.106 is amended by removing paragraphs (a)(2)(ii), (a)(3), and (a)(4) and redesignating paragraph (a) (2) (iii) as paragraph (a) (2) (ii). 20. Section 21.107 is amended by removing paragraph (c) and revising paragraph (b) to read as follows:  21.107 Transmitter power. * * * * * (b) The EIRP of a transmitter station employed in this radio service shall not exceed the values shown in the following tabulation: Maximum allowable EIRP for a fixed Frequency Band station (MHz) (Watts) 2,150 to 2,162 2000/1/ 2,596 to 2,680 2000/1/ /1/ When a Multipoint Distribution Service station uses a non-omnidirectional antenna EIRP up to 7943 Watts may be authorized pursuant to  21.904(b) of this Part. 21. Section 21.108 is removed and reserved. 22. Section 21.109 is amended by revising paragraph (b) to read as follows:  21.109 Antenna and antenna structures. * * * * * (b) The Commission may require the replacement, at the licensee's expense, of any antenna system of a permanent fixed station operating at 2500 MHz or higher upon a showing that said antenna causes or is likely to cause interference to any other authorized or proposed station. 23. Section 21.114 is removed and reserved. 24. Section 21.119 is removed and reserved. 25. Section 21.120 is amended by removing paragraphs (d) and (e), and revising paragraph (a) to read as follows:  21.120 Authorization of transmitters. (a) Except for transmitters used at developmental stations, each transmitter shall be a type which has been type accepted by the Commission for use under the applicable rules of this part. * * * * * 26. Section 21.122 is amended by revising paragraph (a) and removing paragraphs (d) and (e), to read as follows:  21.122 Microwave digital modulation. (a) Microwave transmitters employing digital modulation techniques and operating below 15 GHz shall, with appropriate multiplex equipment, comply with the following additional requirement: The bit rate, in bits per second, shall be equal to or greater than the bandwidth specified by the emission designator in Hertz (e.g., to be acceptable, equipment transmitting at a 6 Mb/s rate must not require a bandwidth of greater than 6 MHz), except the bandwidth used to calculate the minimum rate shall not include any authorized guard band. * * * * * 27. Sections 21.212 through 21.214 are removed. 28. Section 21.303 is amended by revising paragraphs (a), (b), (c) and (d)(1) to read as follows:  21.303 Discontinuance, reduction or impairment of service. (a) If the public communication service provided by a station subject to this rule part is involuntarily discontinued, reduced or impaired for a period exceeding 48 hours, the station licensee shall promptly give notification thereof in writing to the Mass Media Bureau at Washington, DC 20554. In every such case, the licensee shall furnish full particulars as to the reasons for such discontinuance, reduction or impairment of service, including a statement as to when normal service is expected to be resumed. When normal service is resumed, prompt notification thereof shall be given in writing to the Mass Media Bureau at Washington, DC 20554. (b) No station licensee subject to title II of the Communications Act of 1934, as amended, shall voluntarily discontinue, reduce or impair public communication service to a community or part of a community without obtaining prior authorization from the Commission pursuant to the procedures set forth in part 63 of this chapter or complying with the requirements set forth at  21.910. In the event that permanent discontinuance of service is authorized by the Commission, the station licensee shall promptly send the station license for cancellation to the Mass Media Bureau at Washington, DC 20554, except that station licenses need not be surrendered for cancellation if the discontinuance is a result of a change of status by a Multipoint Distribution Service licensee from common carrier to non-common carrier pursuant to  21.910. (c) Any station licensee, not subject to title II of the Communications Act of 1934, as amended, who voluntarily discontinues, reduces or impairs public communication service to a community or a part of a community shall give written notification to the Commission within 7 days thereof. In the event of permanent discontinuance of service, the station licensee shall promptly send the station license for cancellation to the Mass Media Bureau at Washington, DC 20554, except that Multipoint Distribution Service station licenses need not be surrendered for cancellation if the discontinuance is a result of a change of status by a Multipoint Distribution Service licensee from non-common carrier to common carrier. (d) * * * (1) Submit for cancellation the station license (or licenses) to the Commission at Washington, DC 20554. * * * * * 29. Subpart G of part 21 (21.500 through 21.512) is removed and reserved. 30. Subpart I of part 21 (21.700 through 21.713) is removed and reserved. 31. Subpart J of part 21 (21.800 through 21.809) is removed and reserved. 32. Section 21.901 is amended by revising paragraph (e) to read as follows:  21.901 Frequencies. * * * * * (e) Frequencies in the band segments 18,580-18,820 MHz and 18,920-19,160 MHz are available for assignment to fixed stations in this service for a point-to-point return link from a subscriber's location. Assignments in the 18 GHz band for these return links will be made in accordance with the provisions of subpart I of part 101 of this chapter. * * * * * 33. Section 21.902 is amended by revising paragraph (c)(1)(ii) to read as follows:  21.902 Frequency interference. * * * * * (c) * * * (1) * * * (ii) if the great circle path between the applicant's proposed transmitter and the protected service area of any authorized, or previously-proposed, cochannel or adjacent-channel station(s) is within 241.4 kilometers or less and 90 percent or more of the path is over water or within 16.1 kilometers of the coast or shoreline of the Atlantic Ocean, the Pacific Ocean, the Gulf of Mexico, any of the Great Lakes, or any bay associated with any of the above (see  21.901(a) and 74.902 of this chapter); * * * * * 34. Section 21.903 is amended by revising paragraph (a) to read as follows:  21.903 Purpose and permissible service. (a) Multipoint Distribution Service stations are generally intended to provide one-way radio transmission (usually in an omnidirectional pattern) from a stationary transmitter to multiple receiving facilities located at fixed points. When service is provided on a common carrier basis, subscriber supplied information is transmitted to points designated by the subscriber. When service is provided on a non-common carrier basis, transmissions may include information originated by persons other than the licensee, licensee- manipulated information supplied by other persons, or information originated by the licensee. Point-to-point radio return links from a subscriber's location to a MDS operator's facilities may be authorized in the 18,580 through 18,820 MHz and 18,920 through 19,160 MHz bands. Rules governing such operation are contained in subpart I of part 101 of this chapter, the Point-to-Point Microwave Radio Service. * * * * * 35. Part 94 is removed and reserved. 36. Part 101 is added to read as follows: PART 101 - FIXED MICROWAVE SERVICES Subpart A - General Sec. 101.1 Scope and authority. 101.3 Definitions. Subpart B - Applications and Licenses General Filing Requirements 101.4 Transition plan. 101.5 Station authorization required. 101.7 Eligibility for station license. 101.9 Formal and informal applications. 101.11 Filing of applications, fees, and number of copies. 101.13 Application forms and requirements for private operational fixed stations. 101.15 Application forms for common carrier fixed stations. 101.17 [Reserved] 101.19 General application requirements. 101.21 Technical content of applications. 101.23 Waiver of rules. 101.25 Inconsistent or conflicting applications. 101.27 Repetitious applications. 101.29 Amendment of pending applications. 101.31 Special temporary, temporary, and conditional authorizations. 101.33 Who may sign applications. Processing of Applications 101.35 Preliminary processing of applications. 101.37 Public notice period. 101.39 Dismissal and return of applications. 101.41 Ownership changes and agreements to amend or dismiss applications or pleadings. 101.43 Opposition to applications. 101.45 Mutually exclusive applications. 101.47 Consideration of applications. 101.49 Grants by random selection. 101.51 Comparative evaluation of mutually exclusive applications. License Transfers, Modifications, Conditions and Forfeitures 101.53 Assignment or transfer of station authorization. 101.55 Considerations involving transfer or assignment applications. 101.57 Modification of station license. 101.59 Processing of applications for facility minor modifications. 101.61 Certain modifications not requiring prior authorization. 101.63 Period of construction; certification of completion of construction. 101.65 Forfeiture and termination of station authorizations. 101.67 License period. 101.69 Transition of the 2.11-2.13 and 2.16-2.18 GHz bands from the Common Carrier Fixed Point-to-Point Microwave Services and the 1.85-1.99, 2.13-2.15, and 2.18-2.20 GHz bands from the Private Operational Fixed Point-to-Point Microwave Service to emerging technologies. Subpart C - Technical Standards 101.101 Frequency availability. 101.103 Frequency coordination procedures. 101.105 Interference protection criteria. 101.107 Frequency tolerance. 101.109 Bandwidth. 101.111 Emission limitations. 101.113 Transmitter power limitations. 101.115 Directional antennas. 101.117 Antenna polarization. 101.119 Simultaneous use of common antenna structures. 101.121 Marking of antenna structures. 101.123 Quiet zones. 101.125 Temporary fixed antenna height restrictions. 101.127 Topographical data. 101.129 Transmitter location. 101.131 Transmitter construction and installation. 101.133 Limitations on use of transmitters. 101.135 Shared use of radio stations and the offering of private carrier service. 101.137 Interconnection of private operational fixed point-to-point microwave stations. 101.139 Authorization of transmitters. 101.141 Microwave modulation. 101.143 Minimum path length requirements. 101.145 Interference to geostationary-satellites. 101.147 Frequency assignments. 101.149 Special requirements for operation in the band 38,600 - 40,000 MHz. Subpart D - Technical Operation 101.201 Station inspection. 101.203 Communications concerning safety of life and property. 101.205 Operation during emergency. 101.207 Suspension of transmission. 101.209 Operation of stations at temporary fixed locations for communication between the United States and Canada or Mexico. 101.211 Operator requirements. 101.213 Station identification. 101.215 Posting of station authorization and transmitter identification cards, plates, or signs. 101.217 Station records. Subpart E - Miscellaneous Common Carrier Provisions 101.301 National defense; free service. 101.303 Answers to notices of violation. 101.305 Discontinuance, reduction or impairment of service. 101.307 Tariffs, reports, and other material required to be submitted to the Commission. 101.309 Requirement that licensees respond to official communications. 101.311 Equal employment opportunities. Subpart F - Developmental Authorizations 101.401 Eligibility. 101.403 Scope of service. 101.405 Adherence to program of research and development. 101.407 Special procedure for the development of a new service or for the use of frequencies not in accordance with the provisions of the rules in this part. 101.409 Terms of grant; general limitations. 101.411 Supplementary showing required. 101.413 Developmental report required. Subpart G - Digital Electronic Message Service 101.501 Eligibility. 101.503 Digital Electronic Message Service Nodal Stations. 101.505 Frequencies. 101.507 Frequency stability. 101.509 Interference protection criteria. 101.511 Purpose and permissible service. 101.513 Transmitter power. 101.515 Emissions and bandwidth. 101.517 Antennas. 101.519 Interconnection. 101.521 Spectrum utilization. Subpart H - Private Operational Fixed Point-to-Point Microwave Service 101.601 Eligibility. 101.603 Permissible communications. Subpart I - Common Carrier Fixed Point-to-Point Microwave Service 101.701 Eligibility. 101.703 Permissible communications. 101.705 Renewal of station licenses. Subpart J - Local Television Transmission Service 101.801 Eligibility. 101.803 Frequencies. 101.805 Assignment of frequencies to mobile stations. 101.807 Transmitter power. 101.809 Bandwidth and emission limitations. 101.811 Modulation requirements. 101.813 Remote control operation of mobile television pickup stations. 101.815 Stations at temporary fixed locations. 101.817 Notification of station operation at temporary locations. 101.819 Stations affected by coordination contour procedures. AUTHORITY: 47 U.S.C. Secs. 154, 303, unless otherwise noted. Subpart A -- General  101.1 Scope and authority. (a) The purpose of the rules in this part is to prescribe the manner in which portions of the radio spectrum may be made available for private operational and common carrier fixed microwave operations that require transmitting facilities on land or in specified offshore coastal areas within the continental shelf. (b) The rules in this part are issued pursuant to the authority contained in Titles I through III of the Communications Act of 1934, as amended, which vest authority in the Federal Communications Commission to regulate common carriers of interstate and foreign communications, to regulate radio transmissions and issue licenses for radio stations, and to regulate all interstate and foreign communications by wire and radio necessary to the accomplishment of the purposes of the Act.  101.3 Definitions. As used in this part. Antenna power gain. The ratio of the maximum radiation intensity to that of an isotropic (omnidirectional) radiator in the far field of its main (forward direction) lobe. Antenna power input. The radio frequency peak or RMS power, as the case may be, supplied to the antenna from the antenna transmission line and its associated impedance matching network. Antenna structure. The antenna, its supporting structure and anything attached to it. Assigned frequency. The center of the frequency band assigned to a station. Assigned frequency bandwidth. The frequency band within which the emission of a station is authorized; the width of the band equals the necessary bandwidth plus twice the absolute value of the frequency tolerance. Authorized bandwidth. The maximum bandwidth authorized to be used by a station as specified in the station license. (See 2.202 of this chapter) Authorized frequency. The frequency, or frequency range, assigned to a station by the Commission and specified in the instrument of authorization. Authorized power. The maximum power a station is permitted to use. This power is specified by the Commission in the station's authorization. Automatic Transmitter Power Control (ATPC). ATPC is a feature of a digital microwave radio system that adjusts the transmitter output power. ATPC allows the transmitter to operate at less than maximum power for most of the time. In a radio employing ATPC, the transmit power is reduced during normal operation conditions. When the receiver detects a reduction in signal level, a control signal is sent to the far end transmitter, instructing it to increase the power output to compensate for the signal reduction. The power output is limited to the licensed (maximum) transmit power. Guidelines for use of ATPC are set forth in the TIA Telecommunications Systems Bulletin TSB 10, "Interference Criteria for Microwave Systems (TSB 10)." Bandwidth occupied by an emission. The band of frequencies comprising 99 percent of the total radiated power extended to include any discrete frequency on which the power is at least 0.25 percent of the total radiated power. Bit rate. The rate of transmission of information in binary (two state) form in bits per unit time. Carrier. In a frequency stabilized system, the sinusoidal component of a modulated wave whose frequency is independent of the modulating wave; or the output of a transmitter when the modulating wave is made zero; or a wave generated at a point in the transmitting system and subsequently modulated by the signal; or a wave generated locally at the receiving terminal which when combined with the side bands in a suitable detector, produces the modulating wave. Carrier frequency. The output of a transmitter when the modulating wave is made zero. Central office. A landline termination center used for switching and interconnection of public message communication circuits. Common carrier fixed point-to-point microwave service. A common carrier public radio service rendered on microwave frequencies by fixed and temporary fixed stations between points that lie within the United States or between points to its possessions or to points in Canada or Mexico. Communication common carrier. Any person engaged in rendering communication service for hire to the public. Control point. An operating position at which an operator responsible for the operation of the transmitter is stationed and which is under the control and supervision of the licensee. Control station. A fixed station, the transmissions of which are used to control automatically the emissions or operations of a radio station, or a remote base station transmitter. Coordination area. The area associated with a station outside of which another station sharing the same or adjacent frequency band neither causes nor is subject to interfering emissions greater than a permissible level. Coordination contour. The line enclosing the coordination area. Coordination distance. The distance on a given azimuth from a station beyond which another station neither causes nor is subject to interfering emissions greater than a permissible level. Digital Electronic Message Nodal Station. A fixed point-to-multipoint radio station in a Digital Electronic Message Service providing two-way communication with Digital Electronic Message User Stations. Digital Electronic Message Service. A two-way end-to-end fixed radio service utilizing digital termination systems for the exchange of digital information. This service may also make use of point-to-point microwave facilities, satellite facilities or other communications media to interconnect digital termination systems to comprise a network. Digital Electronic Message User Station. Any one of the fixed microwave radio stations located at users' premises, lying within the coverage area of a Digital Electronic Message Nodal Station, and providing two-way digital communications with the Digital Electronic Message Nodal Station. Digital modulation. The process by which some characteristic (frequency, phase, amplitude or combinations thereof) of a carrier frequency is varied in accordance with a digital signal, e.g. one consisting of coded pulses or states. Drop point. A term used in the point-to-point microwave radio service to designate a terminal point where service is rendered to a subscriber. Earth station. A station located either on the Earth's surface or within the major portion of Earth's atmosphere and intended for communication: (1) With one or more space stations; or (2) With one or more stations of the same kind by means of one or more reflecting satellites or other objects in space. Effective radiated power (ERP). The product of the power supplied to the antenna and its gain relative to a half-wave dipole in a given direction. Equivalent Isotropically Radiated Power (EIRP). The product of the power supplied to the antenna and the antenna gain in a given direction relative to an isotropic antenna. Exchange. A unit of a communication company or companies for the administration of communication service in a specified area, which usually embraces a city, town, or village and its environs, and consisting of one or more central offices, together with the associated plant, used in furnishing communication service in that area. Exchange area. The geographic area included within the boundaries of an exchange. Fixed satellite earth station. An earth station intended to be used at a specified fixed point. Fixed relay station. A fixed station associated with one or more stations, established to receive radio signals directed to it and to retransmit them automatically on a fixed service frequency. Fixed Service. A radiocommunications service between specified fixed points. Fixed station. A station in the fixed service. Frequency tolerance. The maximum permissible departure by the center frequency of the frequency band occupied by an emission from the assigned frequency or, by the characteristic frequency of an emission from the reference frequency. NOTE: The frequency tolerance is expressed as a percentage or in Hertzs. General communication. Two-way voice communication, through a base station, between: (1) A common carrier land mobile or airborne station and a landline telephone station connected to a public message landline telephone system; (2) Two common carrier land mobile stations; (3) Two common carrier airborne stations; (4) A common carrier land mobile station and a common carrier airborne station. Harmful interference. Interference that endangers the functioning of a radionavigation service or of other safety services or seriously degrades, obstructs or repeatedly interrupts a radiocommunication service operating in accordance with these regulations. Internodal link. A point-to-point communications link used to provide communications between Nodal Stations or to interconnect Nodal Stations to other communications media. Landing area. A landing area means any locality, either of land or water, including airports and intermediate landing fields, which is used, or approved for use for the landing and take-off of aircraft, whether or not facilities are provided for the shelter, servicing, or repair of aircraft, or for receiving or discharging passengers or cargo. Local Television Transmission Service. A public radio communication service for the transmission of television material and related communications. Long haul system. A microwave system licensed under this part in which the longest radio circuit of tandem radio paths exceeds 402 kilometers. Master station. A station in a multiple address radio system that controls, activates or interrogates four or more remote stations. Master stations performing such functions may also receive transmissions from remote stations. Message center. The point at which messages from members of the public are accepted by the carrier for transmission to the addressee. Microwave frequencies. As used in this part, this term refers to frequencies of 890 MHz and above. Microwave link. A link is define