Report No. WT 98-25 WIRELESS TELECOMMUNICATIONS ACTION August 6, 1998
                                
              FCC ADOPTS PARTITIONING AND DISAGGREGATION RULES
                           FOR 220 MHz LICENSES 
            (PR Docket No. 89-552, GN Docket No. 93-252)

      The Commission has adopted a Fifth Report and Order (Fifth R&O) amending Part 90 of the
Commission's rules to adopt geographic partitioning and spectrum disaggregation rules for the 
220-222 MHz service.  These rules will give the 220 MHz service the competitive benefits that can be
achieved by allowing licensees to partition and disaggregate -- more efficient use of spectrum, "ensure
that small businesses, rural telephone companies, and businesses owned by members of minority groups
and women are given the opportunity to participate" in the provision of 220 MHz service, and expedited
delivery to unserved areas, consistent with the Commission's mandate under section 309(j) of the
Telecommunications Act.  These rules will apply to incumbent and future 220 MHz licensees.  The
auction for the second phase of licensing in the 220 MHz service is scheduled to commence on
September 15, 1998. 

     Partitioning is the reassignment of licenses by geographic areas other than those used by the
Commission in the original licensing process.  Disaggregation is the assignment of discrete portions, or
"blocks," of spectrum licensed to a geographic licensee or other qualifying entity.  In an effort to create
regulatory symmetry among wireless services, the Commission has followed the general framework for
partitioning and disaggregation that has previously been adopted for other wireless services.

     Specifically, in the Fifth R&O, the Commission adopted the following partitioning and
disaggregation rules for the 220 MHz service:

                   220 MHz licensees, with the exception of Public Safety and Emergency Medical Radio
          Service (EMRS) licensees, are permitted to partition.
     
                   Partitioning of 220 MHz licenses is permitted based on any geographic area defined by the
          parties, provided they submit information to the Commission regarding relevant
          boundaries or coordinates.
     
                   All 220 MHz licensees are permitted to disaggregate, with the exception of Public Safety
          or EMRS licensees.  Disaggregation of 220 MHz spectrum is allowed for any amount of
          spectrum, with no requirement that the disaggregator retain a certain amount of spectrum
          as long as the disaggregation is otherwise consistent with the Commission's rules.
     
                   Combined partitioning and disaggregation is permitted.
     



                   Non-nationwide Phase I licensees eligible to partition and disaggregate may do so only
          after fully constructing their base stations and placing them in operation, or commencing
          service.

                   Nationwide Phase I licensees are permitted to partition and disaggregate only after
          constructing 40 percent of their proposed systems.
     
                   Phase II licensees eligible to partition and disaggregate may do so at any time after they
          receive their license.

                   Phase II licensees eligible to partition and disaggregate may negotiate with their partial
          assignees to determine how the construction requirements will be met.  Under one option,
          the assignee can certify that it will satisfy the construction requirements for its area or
          spectrum, while the original licensee is responsible for the area or spectrum it retains. 
          Under a second option, one party can certify that it will meet the construction
          requirements for all the license area or spectrum.  

                   220 MHz partitionees and disaggregatees will hold their licenses for the remainder of the
          original licensees' term and may earn a renewal expectancy similar to other 220 MHz
          licensees.
     
                   220 MHz licensees that obtained a small business, or very small business, bidding credit at
          auction must adhere to the unjust enrichment rules if they partition or disaggregate to a
          non-small business entity.  Unjust enrichment will be calculated on a pro rata basis using
          population to determine the relative value of the partitioned area or the amount of
          spectrum disaggregated to determine the relative value of the disaggregated spectrum. 
     
                   The Commission's current Part 90 assignment procedures will apply to 220 MHz
          partitioning and disaggregation.   

     Action by the Commission, August 4, 1998, by Fifth Report and Order (FCC 98-186).  Chairman
Kennard, Commissioners Ness, Furchtgott-Roth, Powell, and Tristani.

                                -FCC-

     News media contact:  Meribeth McCarrick at (202) 418-0654.
     Wireless Telecommunications Bureau contact: Scott Mackoul at (202) 418-7240.