NEWSReport No. WT 98-2 WIRELESS TELECOM ACTION February 5, 1998 COMMISSION ADOPTS FORBEARANCE FROM PRO FORMA TRANSFER AND ASSIGNMENT PROCEDURES FOR WIRELESS TELECOMMUNICATIONS CARRIERS The Commission today adopted a Memorandum Opinion and Order (Order) which grants forbearance from its pro forma transfer and assignment procedures for wireless telecommunications services. The action is the Commission's first exercise of forbearance authority under the 1996 Telecommunications Act with respect to wireless telecommunications services. The Order addresses petitions for forbearance filed by the Federal Communications Bar Association (FCBA) and the Personal Communications Industry Association (PCIA). Several participants at the Commission's Forum on Streamlining Wireless Telecommunications Bureau rules held last month also urged the Commission to forbear from its pro forma transfer and assignment procedures for wireless services. Today's action is part of the Commission's larger effort to streamline procedures and eliminate unnecessary regulations. Pro forma transfers of control and assignments of license are those that do not involve a substantial change in the licensee's ownership or control. As required by section 310(d) of the Communications Act, wireless telecommunications carriers must file applications for pro forma assignments or transfers in advance of the desired transaction and wait for Commission processing and grant of such applications. Additionally, a separate form and filing fee must be filed for each license that would be affected. In today's Order, the Commission determined that it would forbear from applying these procedures and adopted streamlined procedures in their place. Wireless telecommunications carriers no longer must seek Commission prior approval before a pro forma transaction. Instead, they may now notify the Commission after the transaction has been consummated and update Commission records that time. Additionally, licensees may elect to file a single letter to notify the Commission, rather than filing separate forms for each affected license. (over) These streamlined procedures will greatly reduce the amount of paperwork that licensees must file, and, by reducing regulatory delay, allow carriers to respond more efficiently to competitive conditions. Forbearance will also promote uniformity among services, as licensees that hold authorizations in different wireless telecommunications services, such as PCS, paging, and cellular, will be able to make pro forma changes without filing multiple applications for each license and service. Commission staff will be able to focus their resources on substantial changes of control and on the initial review of potential licensees. Under section 10 of the Communications Act, added by the 1996 Telecommunications Act, the Commission must forbear from applying any regulation or provision of the Act to a telecommunications carrier if it determines that: (1) enforcement is not necessary to ensure that charges, practices, classifications and services are just and reasonable, and not unjustly or unreasonably discriminatory; (2) enforcement is not necessary for the protection of consumers; and (3) forbearance is consistent with the public interest. Forbearance will be applied to telecommunications carriers licensed under Part 21 (domestic public fixed radio services), Part 22 (public mobile radio services), Part 24 (personal communications services), Part 27 (wireless communications services), Part 90 (private land mobile radio services), and Part 101 (fixed microwave services) of the FCC rules. However, this forbearance does not extend to carriers licensed under these rules which do not meet the statutory definition of "telecommunications carrier," such as public safety, and private point-to-point microwave licensees because section 10 forbearance authority only extends to telecommunications carriers and telecommunications services. In order to minimize any disparity in our treatment of non-telecommunications as compared to telecommunications licenses, the Commission intends to consider adoption of expedited procedures for pro forma transfers and assignments in an upcoming rulemaking implementing the Universal Licensing System for wireless services. Additionally, the Commission will continue to require prior review of all substantial transfers and assignments, as well as those transfers and assignments of licensees subject to the Commission's unjust enrichment provisions for certain auctioned licenses and those transactions involving the use of proxy mechanisms. Action by the Commission February 4, 1998, by Memorandum Opinion and Order (FCC 98-18). Chairman Kennard, Commissioners Ness, Furchtgott-Roth, Powell and Tristani. - FCC - News Media contact: Elizabeth Lyle at (202) 418-0654. Wireless Telecommunications Bureau, Commercial Wireless Division, contact: David Furth at (202) 418-0620 or Rhonda Lien at (202) 418-7240.