NEWSReport No. DC-2661     ACTION IN DOCKET CASE           October 19, 1994

              BROADBAND PCS REGULATORY STRUCTURE AFFIRMED,
                         WITH MINOR MODIFICATIONS
                            (GEN DOCKET 90-314)

     The FCC has affirmed its broadband Personal Communications
Services (PCS) regulatory structure, and expanded a procedural
option that enables otherwise ineligible bidders to participate in
auctions for broadband PCS spectrum on condition they promptly
divest their problematic cellular interests if they obtain a PCS
license.  By thus broadening the participation in PCS auctions, the
Commission expects to improve prospects for the most efficient and
expeditious implementation of PCS service, with consequent benefits
in the form of competition, economic growth and increased jobs.

     The finalizing of these rules sets the stage for the first
broadband PCS auction, which will commence December 5, 1994, and
for which short-form applications are due October 28.

     The Commission denied in major part ten petitions for
reconsideration of its PCS rules that principally raised issues the
FCC has considered at length in previous orders and rejected. 
     
     The Commission modified or clarified its rules in the
following respects:

     -- Extended a procedural option to entities with non-
controlling, attributable cellular interests so that they may bid
on "in-market" 30 MHz PCS licenses, conditioned on compliance,
through divestiture, with existing cellular/PCS cross-ownership
rules within 90 days following the PCS license grant. However, if
they assign their interest to trustees, the trustees have until six
months from the date of license grant to come into compliance;  

     --  Clarified that PCS base station power limitations apply to
each antenna at a base station, as opposed to being measured on a
per-base station basis; and

     -- The rule governing the unlicensed PCS isochronous frame
period was modified to address concerns that the existing rule
adversely affects interoperability of licensed and unlicensed PCS
systems.
     
                                  (over)

                                   - 2 -

     In denying the reconsideration petitions, the Commission:

     -- Affirmed existing license eligibility and ownership
attribution rules;

     --  Denied without prejudice a proposal to require PCS
licensees to share the costs of relocating microwave licensees from
the 1850-1990 MHz PCS band;

     --  Declined to change PCS service area definitions;

     --  Affirmed an existing rule that divides Puerto Rico into
two Basic Trading Areas (BTAs); 

     -- Declined a request to interpret the meaning of
correspondence between the Association of Independent Designated
Entities and Rand McNally regarding the latter's agreement to
license the terms MTA and BTA;

     -- Determined that the question whether to impose Open Network
Architecture regulation on PCS licensees is outside the scope of
this proceeding;

     -- Denied without prejudice requests to change rules
concerning PCS power limit measurement and to establish modulation
mask rules for all unlicensed PCS devices;

     -- Determined that it is unnecessary to impose special
technical requirements on PCS licensees in Block C in order to
prevent their operations from interfering with adjacent Broadcast
Auxiliary Service licensees; and defers to the pending Mobile
Satellite Service (MSS) proceeding the question whether to
establish a secondary allocation for MSS in PCS Blocks F and C
(1970-1990 MHz).

     Action by the Commission October 19, 1994, by Second
Memorandum Opinion and Order (FCC 94-265). Chairman Hundt,
Commissioners Quello, Barrett, Ness and Chong. 

                                  - FCC -

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