WT 97-4 WIRELESS TELECOMMUNICATIONS ACTION February 19, 1997 FCC ESTABLISHES SERVICE AND AUCTION RULES FOR THE WIRELESS COMMUNICATIONS SERVICE IN THE 2.3 GHz BAND (GN Docket No. 96-228) Pursuant to provisions of the Omnibus Consolidated Appropriations Act of 1997, the FCC today adopted a Report and Order that amends the Commission's Rules to reallocate and assign the use of the frequencies at 2305-2320 and 2345-2360 MHz. To be known as the Wireless Communications Service (WCS). The rules adopted today also give WCS licensees flexibility to provide a broad range of wireless services that are consistent with the allocation table and associated international agreements. The WCS spectrum is located on either side of the 25 MHz of spectrum allocated for satellite Digital Audio Radio Service ("satellite DARS"). In the Report and Order the Commission also adopted technical rules to protect satellite DARS reception from out-of-band emissions from WCS transmitters. The Commission noted that there is a substantial risk that these technical rules will make mobile operations on WCS spectrum technologically infeasible, at least for the foreseeable future. The Report and Order adopted today also:  Provides for the award of two 10 MHz WCS licenses for each of 52 Major Economic Areas and two 5 MHz WCS licenses for each of 12 Regional Economic Area Groupings, and determines that all WCS licenses will be awarded by means of a simultaneous, multiple-round electronic auction.  Considers the needs of public safety radio services, as directed by the Appropriations Act, and states the Commission's belief that creating new funding sources to meet future public safety communications needs would substantially aid public safety agencies in upgrading their systems for use on new spectrum. The Commission also referred to other pending proceedings in which it expects that additional spectrum will be allocated for public safety use.  Indicates that WCS licensees will be permitted to partition their service areas into smaller geographic service areas and to disaggregate their spectrum into - more - - 2 - smaller blocks without limitation, and that WCS spectrum holdings will not be considered for purposes of the CMRS spectrum cap. There also will be no eligibility restrictions for WCS spectrum, with the exception of applicable foreign ownership restrictions set forth in Section 310 of the Communications Act.  Provides that WCS licenses will be for a term of 10 years, and will carry a renewal expectancy similar to that afforded PCS and cellular licensees. In addition, WCS licensees will be required to provide "substantial service" within their 10-year license term.  Requires winning bidders for WCS licenses to designate in their long-form applications the type(s) of WCS service(s) they will provide. Their regulatory treatment will depend on these designations. WCS licensees that provide satellite DARS services will be governed by the rules to be adopted in IB Docket No. 95-91.  Requires certain WCS transmitters and devices to conform to our environmental rules governing radiofrequency safety.  Adopts the competitive bidding rules set forth in Part 1 of the Commission's Rules for the WCS auction, with some exceptions. The FCC will make available on all WCS licenses bidding credits of 25 percent and 35 percent for bidders that qualify as small businesses and very small businesses, respectively, using the revenue standards employed in broadband PCS. Action by the Commission February 19, 1997 by Report and Order (FCC 97-50). Chairman Hundt, Commissioners Quello, Ness and Chong with Commissioners Ness and Chong issuing separate statements. - FCC - News Media contact: Kara Palamaras at (202) 418-0654 Wireless Telecommunications Bureau contact: Josh Roland at (202) 418-0660 Office of Engineering and Technology contact: Tom Mooring at (202) 418-2450