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5anЪ6ч6Technical 5a8Ъ=('8Ÿ5ЊHЪљ*'FЪg/Ÿ5\ЪEЋѕћыќааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггУ УФ Фггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааTechnical 6anЪ6ч6Technical 6a8Ъ=('8Ÿ5ЋHЪљ*'FЪg/Ÿ5\ЪEЌѕ§ыўааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггУ УФ Фггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааTechnical 2anЪ6ч6Technical 2a8Ъ=('8Ÿ5ЌHЪљ*'FЪg/Ÿ5\ЪE­џггггггггћџ2лЎ€жЏ8ŸжА€зиБ8WйTechnical 3anЪ6ч6Technical 3a8Ъ=('8Ÿ5­HЪљ*'FЪg/Ÿ5\ЪEЎггггггггTechnical 4anЪ6ч6Technical 4a8Ъ=('8Ÿ5ЎHЪљ*'FЪg/Ÿ5\ЪEЏѕыааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггУ УФ Фггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааTechnical 1anЪ6ч6Technical 1a8Ъ=('8Ÿ5ЏHЪљ*'FЪg/Ÿ5\ЪEАггггггггTechnical 7anЪ6ч6Technical 7a8Ъ=('8Ÿ5АHЪљ*'FЪg/Ÿ5\ЪEБѕыааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггУ УФ Фггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааћџ2“сВ8СлГ<љнД€5рЕоЕрTechnical 8anЪ6ч6Technical 8a8Ъ=('8Ÿ5БHЪљ*'FЪg/Ÿ5\ЪEВѕ ы ааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА` И hРpШ xа 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8aa8Ъ=('8Ÿ5ЙHЪљ*'FЪg/Ÿ5\ЪEИггггггггDocument 4aanЪ6ч6Document 4aa8Ъ=('8Ÿ5КHЪљ*'FЪg/Ÿ5\ЪEЙггггУУУ УФФФ Фггггћџ2ЋцК€ЋфЛ€+хМ€ЋхН€+цDocument 6aanЪ6ч6Document 6aa8Ъ=('8Ÿ5ЛHЪљ*'FЪg/Ÿ5\ЪEКггггггггDocument 5aanЪ6ч6Document 5aa8Ъ=('8Ÿ5МHЪљ*'FЪg/Ÿ5\ЪEЛггггггггDocument 2aanЪ6ч6Document 2aa8Ъ=('8Ÿ5НHЪљ*'FЪg/Ÿ5\ЪEМггггггггDocument 7aanЪ6ч6Document 7aa8Ъ=('8Ÿ5ОHЪљ*'FЪg/Ÿ5\ЪEН ггггггггћџ2ѓэО2нцП2щР€AыС2Сы32Ъg/Ÿ5ПnЪ6ч6Right Par 1aa8Ъ=('8Ÿ5ПHЪљ*'FЪg/Ÿ5\ЪEОђ!ш"ааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааггггггггааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаа33Ъg/Ÿ5РnЪ6ч6Right Par 2aa8Ъ=('8Ÿ5РHЪљ*'FЪg/Ÿ5\ЪEПђ#ш$ааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXАј` И hРpШ xа 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5aaaЪ=('8Ÿ5сHЪљ*'FЪg/Ÿ5\ЪEпcdааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА` И ˆhРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааб#Xvў6X@Щ?CX@#бггггггггб#єXє\  PŽ@G;єP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаа64Ъg/Ÿ5тnЪ6ч6Right Par 6aaaЪ=('8Ÿ5тHЪљ*'FЪg/Ÿ5\ЪEрefааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА` И hрРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ0ААааб#Xvў6X@ЩACX@#бггггггггб#єXє\  PŽBG;єP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаа65Ъg/Ÿ5уnЪ6ч6Right Par 7aaaЪ=('8Ÿ5уHЪљ*'FЪg/Ÿ5\ЪEсghааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА` И hРАpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааб#Xvў6X@ЩCCX@#бггггггггб#єXє\  PŽDG;єP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааћџ2 ,т€Б#у†1&ф†З(хЮ=+66Ъg/Ÿ5фnЪ6ч6Right Par 8aaaЪ=('8Ÿ5фHЪљ*'FЪg/Ÿ5\ЪEтijааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ0ААааб#Xvў6X@ЩECX@#бггггггггб#єXє\  PŽFG;єP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаа67Ъg/Ÿ5хnЪ6ч6Technical 5aaaЪ=('8Ÿ5хHЪљ*'FЪg/Ÿ5\ЪEуklааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааб#Xvў6X@ЩGCX@#бггггУ УФ Фггггб#єXє\  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(#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаа72Ъg/Ÿ5ъnЪ6ч6Technical 1aaaЪ=('8Ÿ5ъHЪљ*'FЪg/Ÿ5\ЪEщ;u;vб#Xjє\  PŽQG;XP#бггггггггб#єXє\  PŽRG;єP#бћџ2О9ъ†_1ы†х3ь…k6эЮ№873Ъg/Ÿ5ыnЪ6ч6Technical 7aaaЪ=('8Ÿ5ыHЪљ*'FЪg/Ÿ5\ЪEъwxааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааб#Xvў6X@ЩSCX@#бггггУ УФ Фггггб#єXє\  PŽTG;єP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААаа74Ъg/Ÿ5ьnЪ6ч6Technical 8aaaЪ=('8Ÿ5ьHЪљ*'FЪg/Ÿ5\ЪEыyzааааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџXА` И hРpШ xа (#џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџААааб#Xvў6X@ЩUCX@#бггггУ УФ Фггггб#єXє\  PŽVG;єP#бааџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџ` И hРpШ xа 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LL2 LL2L"",,2d""/>/>/>/x]‚S‚S‚S‚Sx]x]x]x]xSxSx]€S‚SxSxSf]xSxSxSxIxIxWxIx{nInInInI‚S‚S‚S‚W‚S‚]‚a?/?]?9?]‡]WW‚]n/nKn9nCn/x]xx]x]‚S‚SЅxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]ЇxxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNдPersonal Communications Services (PCS), cellular, CMRS Specialized Mobile Radio (SMR), д АxгдCMRS paging, CMRS 220 MHz service, and forЉprofit interconnected business radio services to д АxЦдoffer fixed wireless services on their assigned spectrum on a coЉprimary basis with mobile services. Specifically, д  NдТXxТРР We conclude that fixed services, excluding broadcast services, are permissible service offerings on spectrum allocated for broadband and narrowband CMRS.Ц(#Ц д  {дТXxТРР We modify our CMRS service rules to allow spectrum allocated to these services to be д  ]дused on a coЉprimary basis for fixed services, mobile services, or any combination of the д  идtwo, and we eliminate the classification of fixed services as limited to auxiliary or ancillary uses in these bands.Ц(#Ц д  {дТXxТРР We maintain the technical rules currently in place for CMRS and require licensees who wish to offer coЉprimary fixed services on CMRS spectrum to comply with those rules.Ц(#Ц д  !дТXxТРР We refer universal service issues that may arise from our decisions in this Report and д ‘Xbв-дOrder to the Commission's pending universal service proceeding, CC Docket No. 96-45.ж$”bвўд {OлД-  /дСxСFederalЉState Joint Board on Universal Service, УУNotice of Proposed Rule Making and Order Establishing д {OЅЅ-дJoint BoardФФ, CC Docket No. 96Љ45, FCC 96Љ93 (rel. March 8, 1996) [61 Fed. Reg. 10499 (March 14, 1996)].$жЦ(#Ц СxС д ‘X4Д-  ЈдСxСи3.и These rule changes will allow CMRS providers greater flexibility to provide innovative д Аx<дwireless services to meet consumer demands. The record in this proceeding and in the testimony д “Xв- Аxyдpresented at our Spectrum УУEn BancФФ hearingжŠ\$вўд {OлД-  ѓдСxСThe Spectrum УУEn BancФФ was held on March 5, 1996. The hearing consisted of four panels and addressed д Аxтдsuch issues as future spectrum demand and technology trends. We incorporate the written submissions and oral д {OmЅ-дtestimony from theУУ En BancФФ Hearing into the record of this proceeding. Šж both indicate that CMRS providers, in addition to д Аx‰дdeveloping mobile services, are seeking to provide a wide range of fixed service offerings to д Аx‰дconsumers, and in many instances to combine fixed and mobile technologies into integrated д “XУД- Аxдservice packages. Potential fixed wireless services include not only "wireless local loop," УУi.e.,ФФ д АxЦдfixed wireless links to connect residences, apartment buildings, office buildings and other д Аx.дstructures with wireline local exchange networks, but also fixed wireless architectures that can д Аxёдlink end users to cellular switches, and remote base stations. By giving CMRS providers greater д Аx дflexibility to provide these fixed services, whether separately or in combination with mobile д Аx—дservices, we establish a framework that will stimulate wireless competition in the local exchange д Аxёдmarket, encourage innovation and experimentation in development of wireless services, and lead д ‘X$Д-дto a greater variety of service offerings to consumers.СppС д ‘XіД-  lдСxСи4.и While we adopt rules allowing licensees to offer fixed services over CMRS spectrum, д Аx{дwe determine that it would be premature to make a final determination with respect to the д “XШ Д- Аxдregulatory treatment of licensees providing such services. Therefore, in the УУFurther Notice ofд"Ш Hˆ,-(-(ZZрс"д д “XД- АxkдProposed Rule MakingФФ, we seek additional comment on the regulatory treatment of entities offering fixed services on CMRS spectrum: д  ‹дТXxТРР We do not intend to alter the regulatory treatment of licensees offering the types of д  #дancillary, auxiliary, and incidental fixed services that have been offered by CMRS providers under our rules prior to this order.Ц(#Ц д  ЦдТXxТРР We propose to establish a presumption that licensees offering other fixed services over д   дCMRS spectrum should be regulated as CMRS. We seek comment on such a presumption and, if adopted, what factors should be used to support or rebut this presumption. Ц(#Ц СxСд ‘Xю Д-даадgдУ УII. BACKGROUNDФ ФдTьдаадPАд д ‘XР Д-  OдааУ УСxСФ Фи5.и Our current rules for CMRS services allow licensees to provide all forms of mobile д Аxђдservices on their assigned spectrum. The Communications Act, as amended, defines "mobile д Аx—дservice" as a "radio communication service carried on between mobile stations or receivers and д “X{в- Аxдland stations, and by mobile stations communicating among themselves."жjШ{вўд yOєД-дааСxС47 U.S.C. РР 153(27) (formerly РР 153(n)). jж In the УУCMRS Second д “XfД- Аx/дReport and OrderФФ, the Commission interpreted the statutory definition of mobile service to д ‘XQв- Аxzдinclude "all auxiliary services provided by mobile services licensees."ж@\QXвўд {OZД-  дСxСImplementation of Sections 3(n) and 332 of the Communications Act, GN Docket No. 93Љ252,УУ Second д {O$Ѕ- АxKдReport and OrderФФ, 9 FCC Rcd 1411, 1424Љ1425 (1994)(УУ"CMRS Second Report and OrderФФ"); УУ see alsoФФ 47 C.F.R. РР20.7.@ж This enables parties д Аx-дlicensed to provide service over CMRS spectrum to provide some forms of fixed services on their д АxЦдassigned spectrum. Our PCS rules, for example, permit PCS licensees to provide any fixed д ‘X в- Аxдservice that is "ancillary" to their mobile operations.ж" ” |вўд {O9Д-  1дУУСxСSeeФФ 47 C.F.R. РР 24.3; УУ see alsoФФ Amendment of the Commission's Rules to Establish New Personal д {OЅ-дCommunications Service, GEN Docket no. 90Љ314, УУSecond Report and Order,ФФ 8 FCC Rcd 7700, 7712."ж Likewise, SMR providers may use licensed д Аx‰дspectrum for certain fixed uses on a secondary, nonЉinterference basis to the primary mobile д ‘Xов- Аx>дoperations of any other licensee.жІ юоивўд {OgД-  ЦдУУСxСSeeФФ, Amendment of Part 90 of the Commission's Rules to Permit Secondary Fixed Tone Signalling and д {O1 Ѕ- АxKдAlarm Operations by End Users of Trunked SMR Systems, PR Docket No. 86Љ78, УУReport and OrderФФ, 1 FCC Rcd„ д Аxˆд926 (1986); Amendment of Part 90 of the Commission's Rules to Permit ExclusiveЉUse Systems to Conduct д АxбдSecondary Fixed Signaling and Alarm Operations without Conforming to the Provision of Section 90.235, PR Docket д {O‹"Ѕ-дNo. 91Љ322, УУReport and OrderФФ, 7 FCC Rcd 4574 (1992); УУsee alsoФФ 47 C.F.R. РР 90.317.Іж Cellular carriers may provide "auxiliary" common carrierд"оŽ ˆ,-(-(ZZrџ"д д Аxудservices and services premised on the use of alternative cellular technologies, provided such д ‘Xщв-дservices do not interfere with cellular service.ж™ \щвўд {ObД-  ЇдУУСxСSeeФФ Amendment of Parts 2 and 22 of the Commission's Rules to Permit Liberalization of Technology and д Аx‡дAuxiliary Service Offerings in the Domestic Public Cellular Radio Telecommunications Service, GEN Docket No. д {OєЅ-д87Љ390, УУReport and Order,ФФ 3 FCC Rcd 7033 (1988); УУsee alsoФФ 47 C.F.R. РР 22.901.™ж СhС СxС д ‘XЛД-  здСxСи6.и These current rules were intended to offer some flexibility to licensees providing д АxMдCMRS services who seek to provide fixed services that complement or support their mobile д Аxхдservice offerings. In the PCS context, for example, we have consistently stated that we д Аxѓдenvisioned PCS providers offering a broad array of services, including services that could д ‘X_в- Аx—дpotentially extend, replace, and compete with wireline local exchange service.жP \_ьвўд {Oќ Д-  ЈдУУСxСSeeФФ Amendment of the Commission's Rules to Establish New Personal Communications Services, GEN д {OЦ Ѕ- АxТдDocket No. 90Љ314 and ET Docket No. 92Љ100, УУNotice of Proposed Rule Making and Tentative DecisionФФ, 7 FCC Rcd 5676, 5681, РР 10 (1992).Pж These services, д Аxдincluding "wireless local loop," may be delivered using a system architecture that is mobile or д ‘X1в-дfixed, or that combines mobile and fixed components.ж. ’1вўд yOђД-  /дСxСMobile service is one that allows the end user to communicate while moving or from different locations. д {OКЅ-дFixed service requires the end user to be at a set location. УУSeeФФ 47 U.S.C. РР 153(27); 47 C.F. R. РР 2.1..ж д ‘X Д-  ŠдСxСи7.и The current rules also place some limits on the ability of licensees on CMRS spectrum д АxЦдto offer fixed services, however. In reviewing the definition of "mobile service" under the д Аx‡дCommunications Act, "we have concluded that services having both fixed and mobile capabilities, д “XО в- АxддУУe.g.ФФ, services provided through dualЉuse equipment, fall within the statutory definition."ж^ЪО j вўд {OйД-дУУСxСCMRS Second Report and OrderФФ, para. 38.^ж In д “XЉ Д- Аxдcontrast, we have concluded that services that are solely fixed in nature,УУ e.g.ФФ, fixed pointЉtoЉpoint д Аx[дservices such as Basic Exchange Telephone Radio Service (BETRS), do not constitute "mobile д ‘X}в- Аxyдservice" within the meaning of the statute.ж:Ъ}ќ вўд {O*Д-дУУСxСIdФФ.:ж The current rules do not allow fixed services to be д Аxjдoffered on spectrum allocated for PCS or other CMRS unless they are ancillary to or in support д АxХдof mobile service offerings, or unless the carrier obtains a waiver allowing it to offer primarily д ‘X8в- Аx=дfixed service.ж”8Ž вўд {Ow Д-  >дУУСxСSeeФФ Allocation of Spectrum Below 5 GHz Transferred from Federal Government Use, ET Docket 94Љ32, д {OA!Ѕ-дУУFirst Report and Order and Second Notice of Proposed Rule Making,ФФ 10 FCC Rcd 4769, 4781 (1995).ж The rationale for prohibiting nonЉancillary fixed uses of the spectrum has been д Аxyдthat the amount of spectrum available for the development of new mobile services such as PCS„ д ‘X в-дis limited and that alternative spectrum is available for fixed services.жњ” ъвўд {OЅ$Д-  ˜дСxСAmendment of the Commission's Rules to Establish New Personal Communications Services, УУGEN Docket д {Oo%Ѕ-дNo. 90Љ314, Second Report and OrderФФ, 8 FCC Rcd 7700, 7712 (1993).њж СxСд"ѓFˆ,-(-(ZZ с"дŒд ‘XД-  šдСxСи8.и The limitations in our rules governing provision of fixed services on PCS and other д АxjдCMRS spectrum have caused uncertainty among carriers. Although terms such as "ancillary," д Аxуд"auxiliary," and "incidental" are intended to provide licensees who offer CMRS services with д Аxздflexibility, these terms are not defined in the rules and have been subject to varying д Аxёдinterpretations. As a result of this lack of clarity, we have found that carriers are hesitant to take д АxІдadvantage of the flexibility allowed by the current rules to explore potential flexible uses of their д Аxддspectrum without further guidance from the Commission. In addition, carriers have indicated д Аxyдinterest in obtaining greater flexibility than the current rules may allow to provide fixed wireless services as a competitive alternative to wireline or mobile wireless service. д ‘X Д-  ЙдСxСи9.и The Commission has also recently taken actions in several other proceedings to д Аx.дincrease the licensee's flexibility in choosing what services to provide. In creating the General д ‘Xь Д- АxЇдWireless Communications Service (GWCS), УУФФthe Commission authorized use of the 4660Љ4685 д ‘Xе в- АxедMHz band to provide mobile or fixed services or a combination of the two.ж№’е вўд yONД-  дСxСAllocation of Spectrum Below 5 GHz from Federal Government Use, 4660Љ4685 MHz, ET Docket No. 94Њд {OЅ-д32, УУSecond Report and Order,ФФ 11 FCC Rcd 624, 672 (1995) №ж Similarly, the д АxдCommission has stated that Multipoint Distribution Service (MDS) stations may render any kind д ‘XЇ в- Аxдof communications service on a common carrier or nonЉcommon carrier basis.жhZЇ "вўд yOzД-  |дСxСAmendment of Parts 21 and 74 of the Commission's Rules with Regard to Filing Procedures in the д Аx–дMultipoint Distribution Service and in the Instructional Fixed Television Fixed Service, MM Docket No. 94Љ131, д {O Ѕ-дУУReport and OrderФФ, 10 FCC Rcd 9589, 9619 (1995).hж The Commission д АxФдhas also proposed to allow fixed operations on a primary basis with land mobile operation in the д ‘Xyв-д220Љ222 MHz band.ж\yDвўд yOnД-  дСxСAmendment of Part 90 of the Commission's Rules to provide for the Use of the 220Љ222 MHz Band by the д {O6Ѕ- АxДдPrivate Land Mobile Radio Service, PR Docket No. 89Љ522, УУSecond Memorandum Opinion and Order and Third д {OЅ-дNotice of Proposed Rule MakingФФ, 11 FCC Rcd 188, 226Љ28 (1995).ж д ‘XbД-дУ УФ Ф д ‘X4Д-дУ УФ ФаадшЗ дУ УIV. FIRST REPORT AND ORDERдTьдаадPАд д ‘XД-дСxСA. FФ ФУ Уlexible Use of CMRS SpectrumФ Ф СxС д “XиД-  /дааСxСи 10.и УУBackgroundФФ.УУФФ We sought comment in the УУNoticeФФ on alternative approaches to allowing д АxдPCS and other CMRS providers more flexibility to offer fixed services, including: (1) adopting„ д Аx™дa rule that would expressly allow CMRS providers to offer "fixed wireless local loop," (2) д Аxдpermitting CMRS providers to offer wireless local loop and other defined fixed services, or (3) д “X~Д- Аx.дallowing CMRS providers to offer any form of fixed service without restriction. In the УУNoticeФФ д ‘Xiв- АxІдwe proposed to apply whatever increased flexibility we granted to broadband CMRS services,ж—Ъih вўд {O‚%Д-дСxСWe defined broadband CMRS to include broadband PCS, cellular and SMR service. УУNoticeФФ at РР 1.—жд"iњ ˆ,-(-(ZZзџ"д д Аxˆдand sought comment on whether narrowband CMRS services should also have such increased д ‘Xщв-дflexibility.жђ’щвўд yObД-  дСxСWe defined narrowband CMRS as paging, narrowband PCS, commercial 220 MHz service, and forЉprofit д {O*Ѕ-дinterconnected business radio service. УУNoticeФФ at РР 18.ђж СxС д ‘XЛД-  OдСxСи 11.иУУФФУУФФ УУCommentsФФ. An overwhelming majority of the commenters support amending our д АxЕдrules to allow all CMRS providers to offer all types of fixed wireless services without restriction. д АxjдMost commenters agree that the Commission's current rules are unclear regarding the extent to д Аx[дwhich various broadband CMRS providers may offer fixed services. These commenters argue д Аx˜дthat the Commission should amend its rules to allow fixed services to be provided on CMRS д Аx|дspectrum on a coЉprimary basis rather than being limited to ancillary or auxiliary uses. д АxдCommenters contend that allowing carriers greater flexibility to provide fixed services will lead„ д Аxiдto more innovation and diversity of service offerings, additional competition in the local exchange д АxХдmarket, expanded use of wireless services in areas that have traditionally not been served by wireline carriers, and competitive prices and enhanced choice for consumers. д ‘XО Д-  ИдСxСи 12.и Commenters who favor flexibility also oppose limiting the definition of permissible д Аxфдfixed service to wireless local loop, on the grounds that such a limitation would inhibit the д АxMдdevelopment and deployment of technology, make it difficult for wireless providers to meet д ‘Xyв- Аxёдconsumer demand, and create unnecessary confusion.жJШy"вўд yOLД-дСxСAT&T Reply Comments at 4.Jж PCIA contends that granting licensees„ д АxKдthe authority to provide all fixed services on spectrum allocated for CMRS avoids the expenditure д АxЦдof both Commission and service provider resources on defining "wireless local loop" and д ‘X4в- Аxдinterpreting that definition.жDШ4Ввўд yO—Д-дСxСPCIA Comments at 6.Dж PCIA further reasons that if wireless local loop service is permitted д Аxyдand other fixed services are not, licensees may engage in technical or legal contortions in order„ д ‘Xв- АxІдto fit their fixed service offerings into the "wireless local loop" definition.жaЪBвўд {OљД-дб#єXє\  PŽ6G;IзєP#бУУСxСId.ФФaж Bell Atlantic argues д Аx.дthat, to the extent that existing rules create uncertainty because they employ different terms in д Аxдauthorizing fixed service by different types of CMRS providers, the Commission should eliminate д Аx.дthat uncertainty by stating that any CMRS provider may offer fixed services provided that the„ д Аxђдtwo longstanding requirements are met: mobile service continues to be offered; and the fixed д ‘X“в-дservice does not interfere with the provision of mobile service.жMШ“двўд yO"Д-дСxСBell Atlantic Comments at 4.Mж д ‘XeД-  !дСxСи 13.и Most commenters also contend that allowing carriers maximum flexibility to provide д АxЇдfixed as well as mobile service will not have a negative impact on the availability of spectrum„ д Аxjдto provide mobile service. Telular argues that there is no longer any regulatory need to ensure д Аxдthat sufficient spectrum will be available for mobile services in addition to fixed services becauseд" d ˆ,-(-(ZZЖс"д д Аxхдa highly competitive emerging marketplace will ensure that licensees service the public д ‘Xщв- Аxˆдefficiently.ж•Шщвўд yObД-дб#єXє\  PŽ6G;IзєP#бб#єCє\  PŽ6QIзєP#бСxСTelular Comments at 9.•ж AT&T points out that it is likely that CMRS providers who have invested billions д ‘Xвв- Аxдof dollars in mobile facilities will retain the primary mobile character of their offerings.ж’ШвXвўд yOлД-дб#єXє\  PŽ6G;IзєP#бб#єCє\  PŽ6QIзєP#бСxСAT&T Comments at 4.’ж CTIA д Аxдstates that the market will ensure that spectrum licensed for CMRS services will be used for fixed д ‘XЄв- Аxдservices only when it is efficient to do so.ж’ШЄшвўд yO= Д-дб#єXє\  PŽ6G;IзєP#бб#єCє\  PŽ6QIзєP#бСxСCTIA Comments at 4.’ж Omnipoint notes that a consensus in favor of д Аx/дallowing the market to decide the best use of available CMRS spectrum is evident, and this д ‘Xvв- Аxфдapproach seems most consistent with the Telecommunications Act of 1996's (1996 Act)жZШvxвўд yOŸ Д-дСxСPub. L. No. 104Љ104, 110 Stat. 56 (1996).Zж д ‘X_в- Аx=дemphasis on deregulation and competition.жOШ_вўд yOД-дСxСOmnipoint Reply Comments at 3.Oж Celpage notes that consumer demand for mobile д ‘XHв- Аx[дservices is increasing and CMRS providers will not ignore consumer demands.ж• ШH˜вўд yO‘Д-дб#єXє\  PŽ6G;IзєP#бб#єCє\  PŽ6QIзєP#бСxСCelpage Comments at 4.•ж Celpage also д Аxђдargues that fixed and mobile uses of CMRS spectrum are complementary rather than mutually д Аx[дexclusive, so that allowing a single carrier to provide both types of service will result in greater д ‘X в-дconveniences and cost savings to the public.ж•!Ш ( вўд yOмД-дб#єXє\  PŽ6G;IзєP#бб#єCє\  PŽ6QIзєP#бСxСCelpage Comments at 5.•ж СxС д ‘Xе Д-  ЦдСxСи 14.и Commenters also generally support extending flexibility to all CMRS bands, including д ‘XО в- Аxёдboth broadband and narrowband services.ж‰"XО И вўд yO'Д-  удб#єXє\  PŽ6G;IзєP#бб#єCє\  PŽ6QIзєP#бСxС360 Degrees Comments at 1, Frontier Comments at 2, Worldcom Comments at 2, Motorola Comments at„ д АxJд2. Worldcom notes that increased competition can help bring down access rates of incumbent LECs to the ultimate benefit of the end user.‰ж УУФФУУФФAMTA argues that creating fixed service flexibility д АxІдonly for a certain portion of CMRS spectrum, such as PCS, makes no sense in light of the FCC's д ‘Xв- Аxђдentire regulatory program for wireless services.ж’#Шивўд yOД-дб#єXє\  PŽ6G;IзєP#бб#єCє\  PŽ6QIзєP#бСxСAMTA Comments at 5.’ж AT&T agrees that in light of the regulatory д Аxђдobjectives of Section 332 of the Communications Act, similar treatment should be afforded all д ‘Xbв-дcategories of CMRS that have the potential to compete with PCS.жD$Шbhвўд yO{"Д-дСxСAT&T Comments at 6.Dж д “X4Д-  mдСxСи15.и A few commenters, however, disagree with the proposals set forth in the УУФФУУNoticeФФ. д ‘Xв- АxгдBANM opposes the rule changes because it believes that they are not needed.ж’%Шјвўд yOШ&Д-дб#єXє\  PŽ6G;IзєP#бб#єCє\  PŽ6QIзєP#бСxСBANM Comments at 2.’ж BANM claimsд"ˆ%ˆ,-(-(ZZЁџ"д д АxЕдthat fixed services are a fledgling business for CMRS providers and that few, if any, are offering д “XщД- Аxтдwhat the УУNoticeФФ describes as wireless local loop service. Accordingly, BANM argues that there д “Xдв- Аx<дis no rationale to examine possible changes to the УУstatus quoФФ at this time.жˆ&Ъдвўд {OMД-дб#єXє\  PŽ6G;IзєP#бУУб#єCє\  PŽ6QIзєP#бСxСId.ФФˆж Comcast believes the д Аx.дCommission should clarify that all auxiliary services provided by mobile services licensees are д “XЈв- Аxдwithin the definition of "mobile service" without using a УУNoticeФФ.жG'ШЈZвўд yOГД-дСxСComcast Comments at 2.Gж RCC notes that the proposals д “X“Д- Аxlдset forth in the УУNoticeФФ merely clarify types of service which cellular licensees already are д ‘X~в-дauthorized to provide.жC(Ш~ъвўд yO Д-дСxСRCC Comments at 3.Cж д ‘XPД-  хдСxСи16.и УУФФPCS One opposes the Commission's proposal to allow cellular licensees to provide д ‘X9в- Аxђдfixed wireless services.жG)Ш9zвўд yOdД-дСxСPCS One Comments at 2.Gж PCS One argues that the Commission must permit PCS, for at least a д Аx—дreasonable interval, greater flexibility than cellular in the use of its spectrum. According to PCS д АxЗдOne, this is necessary in order to establish a more level playing field while PCS enters the д ‘Xє в- АxДдmarketplace and attempts to establish itself against the entrenched cellular operators.жљ*’є вўд {OЏД-  kдУУСxСId.ФФ PCS One argues that this is especially important in light of the fact that PCS licensees had to pay for their licenses in auctions, and also have to pay to relocate incumbents. љж Omnipoint д Аxдsupports operational flexibility for PCS providers, arguing that PCS offerings will change over д Аx™дtime as operators buildЉout their systems, new technology changes PCS capabilities, and д ‘XЏ в- АxЕдadditional competition further invigorates the local exchange market.жI+ШЏ d вўд yOФД-дСxСOmnipoint Comments at 1.Iж PacTel and UTC believe д АxЕдthat, if the Commission makes a distinction among CMRS providers, PCS licensees should have the greatest flexibility because they received their licenses through the auction process. д “XSД-  ŒдСxСи17.и УУФФУУФФУУDiscussionФФ. The record supports our observation in the УУNotice ФФthat sufficient д Аxдuncertainty exists in our current rules to warrant clarification with regard to the provision of fixed д Аxудservices over spectrum allocated for CMRS. Rather than continuing to define allowable fixed д Аxyдservices in terms of whether they are "ancillary," "auxiliary," or "incidental" to mobile services, д Аx‰дwe conclude that our rules should more broadly allow fixed services to be provided on a coЊprimary basis with mobile services. СxС д ‘XДД-  !дСxСи18.и As a threshold matter, we note that the record in this proceeding strongly supports„ д Аx.дour proposal to encourage the provision of fixed services by licensees operating in the CMRS д АxLдbands. Commenters have provided several examples of potential applications of fixed wireless д Аxzдtechnology. For example, fixed wireless systems can be imbedded into PBXs and local area д Аx=дnetworks to permit continued service even when wireline service is interrupted due to weatherд"X є +ˆ,-(-(ZZс"д д ‘Xв- Аxудor other emergencies.ж•,Швўд yOyД-дб#єXє\  PŽ6G;IзєP#бб#єCє\  PŽ6QIзєP#бСxСTelular Comments at 3.•ж Call routing may become more efficient by allowing CMRS providers д ‘Xщв- Аxˆдto offer fixed wireless services.ж‘-ШщXвўд yOђД-дб#єXє\  PŽ6G;IзєP#бб#єCє\  PŽ6QIзєP#бСxСRCC Comments at 4.‘ж Omnipoint suggests that fixed wireless links could be used to д Аxдprovide "local loop" to apartment buildings, office buildings, and older homes where rewiring д ‘XЛв- Аxzдcosts are high.ж—.ШЛшвўд yOTД-дб#єXє\  PŽ6G;IзєP#бб#єCє\  PŽ6QIзєP#бСxСOmnipoint Comments at 5.—ж Nortel envisions a variety of "fixed wireless access" services coming into д Аxгдhomes and residences that would provide an alternative to endЉtoЉend wiring by the carrier from д ‘Xв-дthe switch to the end user.жз/’xвўд {OЖ Д-  дУУСxСEx parteФФ presentation by Northern Telecom to the Wireless Telecommunications Bureau on Fixed Wireless Access on May 14, 1996 (Nortel Presentation). зж д ‘X_Д-  ѓдСxСи19.и We agree with the many commenters that support the Commission's proposal to allow д АxЖдCMRS providers to offer fixed wireless services. We believe that the public interest is better д Аxyдserved by not attempting to limit potential use of CMRS spectrum to specific applications. We д АxЉдagree with SBC Communications that imposing such a limitation could lead to difficult д ‘X в- Аxсдdefinitional questions about what constitutes "wireless local loop" or other defined services.жR0Ш ввўд yO†Д-дСxСSBC Communications Comments at 3.Rж For д Аx—дexample, Nortel's concept of fixed wireless access includes not just lowЉpower wireless "drops" д Аxгдfrom the street to the home, but also fixed wireless architectures that would link end users to the д ‘XО в- Аx.дpublic switched network through cellular switches, and remote base stations (in rural areas).жK1ЪО b вўд {OбД-дУУСxСNortel presentation.ФФKж „ д АxдIf we were to restrict fixed service to certain configurations, Nortel and other carriers might be д АxNдreluctant to pursue some potentially efficient options out of concern that they would be д Аxдconsidered to fall outside the definition of our prescribed service definition. Rather than limit д Аx[дthe flexibility of carriers in this manner, we prefer to encourage innovation and experimentation through a broader, more flexible standard. д “XД-  NдСxСи20.и Additional support for this approach comes from the б#Xjє\  PŽ6G;љ+XP#бCommission's УУen banc ФФhearing д ‘Xв- Аx‹дon spectrum policy, held on March 5, 1996.жL2Zє вўд yO­ Д-  >дСxСThe hearing consisted of four panels and addressed such issues as future spectrum demand and technology д {Ou!Ѕ- АxГдtrends. We incorporate the written submissions and oral testimony from the УУEn BancФФ Hearing into the record of this proceeding. Lж In written and oral testimony before the д АxІдCommission, a number of participants in the hearing stressed the importance of allowing CMRS д Аxудproviders the flexibility to offer fixed wireless services. Northern Telecom, for example, noted д Аx{дthat local access competition will stimulate a rapid demand for fixed wireless service, and д Аx\дencouraged the Commission to give wireless operators service flexibility to respond to userд"Ќ 2ˆ,-(-(ZZЌс"д д ‘Xв- АxФдdemands.ж3Швўд yOyД-дСxСTestimony of David Twyver, President, Wireless Networks, Northern Telecom, March 5, 1996, at 3.ж The National Association of Broadcasters agreed that allowing greater flexibility for д АxMдCMRS providers would have significant public interest benefits by stimulating competition д ‘Xвв- Аxjдbetween wireless and wireline telephony.жн4вXвўд yOлД-  дСxСTestimony of Lynn D. Claudy, Senior Vice President, Science and Technology, National Association of Broadcasters, Spectrum En Banc Hearing, March 5, 1996, at 2.нж Freedom Technologies, Inc., testified that allowing д Аxдgreater flexibility in spectrum use is consistent with the Commission's responsibility to ensure„ д ‘XЄв- Аxгдthe efficient use of spectrum.жј5”ЄАвўд {O Д-  kдСxСTestimony of Charla M. Rath, Freedom Technologies, Inc., "УУFlexibility in Spectrum Allocation and Use: д {OЯ Ѕ-дAchieving Efficient Use of SpectrumФФ," March 5, 1995, at 8.јж On a panel concerning technology trends, COM21 asserted that д Аx\дrules promoting flexible use of spectrum will create incentives for the development of better д ‘Xvв- АxZдsharing technologies.жˆ6Шv вўд yO3Д-дСxСTestimony of Mr. Paul Baran, Chairman of Com21, Inc., submitted by CTIA, March 5, 1996.ˆж AirTouch submitted that flexibility should be an integral part of spectrum д Аx.дpolicy because such flexibility increases innovation and competition, and helps to ensure that д ‘XHв-дspectrum is devoted to its highest and best uses.ж­7Hœвўд yO•Д-  ‰дСxСTestimony of F. Craig Farrill, on behalf of AirTouch Communications, March 5, 1996, at 1 (Summary of Statement).­ж СxС д “X Д-  ?дСxСи21.и In the УУNoticeФФ, we sought comment on whether allowing CMRS providers to provide д Аxzдfixed services without restriction could result in limiting capacity for mobile services. In that д Аxдregard, we observed that current technology supports use of spectrum to provide mobile service д ‘Xз в- АxЦдonly below the 3 GHz band, while fixed uses are feasible on higher bands.жN8Ъз є вўд {O|Д-дУУСxСId.ФФ, paras. 14, 17, 25.Nж Based on the д Аx-дrecord, we conclude that this need not be a concern. First, with the advent of PCS and other new д АxЖдCMRS services, we have significantly increased the amount of spectrum available for mobile д Аxjдservices over what was available previously. Second, carriers are using advanced technology. „ д АxЦдAs Sprint Spectrum and US West point out, development of digital technology has led to д Аxдincreases in potential CMRS spectrum capacity by a factor