FOR IMMEDIATE RELEASE NEWS MEDIA CONTACT: September 7, 1999 Meribeth McCarrick at (202) 418-0654 FCC ADOPTS REVISED LICENSING AND SERVICE RULES FOR THE 218-219 MHZ SERVICE Washington, D.C. --- The Federal Communications Commission (FCC) adopted revised rules for the 218-219 MHz Service, formerly known as the Interactive Video and Data Service, and resolved several outstanding issues pertaining to the licensing of the service. This action was taken in order to maximize the efficient and effective use of the 218-219 MHz frequency band. The 218-219 MHz Service was initially allocated in 1992 to provide interactive capabilities to television viewers. Today's action modifies the regulations governing the licensing of the 218-219 MHz Service, largely adopting proposals the Commission made in a September, 1998 Notice of Proposed Rulemaking. The Order also resolves issues raised on remand by the D.C. Circuit Court in Graceba Total Communications, Inc. v. FCC, 105 F.3d 1038 (1997). Specifics of Today's Action:  Concludes that licensees can best design service offerings to meet market demand through the redesignation of the 218-219 MHz Service from a strictly private radio service (i.e., a service that is used to support the internal communications requirements of an entity) to a service that can be used in both common carrier and private operations;  Clarifies that both one- and two-way communications and Response Transmitter Unit-to- Response Transmitter Unit (RTU-to-RTU) communications, regardless of regulatory status, are permitted in the 218-219 MHz Service;  Extends the term of 218-219 MHz Service licenses to ten years from the date of the license grant;  Adopts an installment payment restructuring plan for existing licensees that (i) were current in installment payments (i.e., less than ninety days delinquent) as of March 16, 1998; or (ii) had properly filed grace period requests under the former installment payment rules ("Eligible Licensees").  Permits Eligible Licensees to choose (i) reamortization of principal and interest installment payments over a ten-year period; (ii) an amnesty option wherein Eligible Licensees surrender any licenses they choose to the Commission for subsequent auction and, in return, have all of the outstanding debt on those licenses forgiven; or (iii) a prepayment option whereupon licensees may retain or return as many licenses as they desire. However, licensees electing the prepayment option must prepay the outstanding principal of any license they wish to retain. The FCC also noted that debt forgiveness is subject to Department of Justice approval.  Eliminates minority- and women-owned business bidding credits and simultaneously grants credits of commensurate size to all winning small business bidders in the 1994 auction of this service.  Acts on various pending pleadings filed by Graceba Total Communications and Community Teleplay, Inc., et al. related to the remand in Graceba Total Communications, Inc. v. FCC.  Eliminates the three- and five-year construction benchmarks and adopts a "substantial service" analysis to be assessed at the expiration of the 218-219 MHz license term as a condition for renewal;  Relaxes the license transfer restriction for licenses acquired by lottery;  Removes the cross-ownership restriction and allows ownership of both frequency segment A (218.0-218.5 MHz) and frequency segment B (218.5-219.0 MHz) in the same service area;  Permits partitioning and disaggregation of spectrum in the 218-219 MHz Service;  Replaces service-specific technical standards with regulations that are applicable to all permissible uses of the 218-219 MHz Service, but retains and modifies the requirement that 218-219 MHz Service licensees provide interference protection to TV Channel 13.  Concludes that the Part 1 rules will govern competitive bidding issues in the 218-219 MHz Service.  Retains the current small business size standards applicable to the 218-219 MHz Service.  Dismisses a petition for reconsideration filed by Interactive America Corporation asking for reconsideration of rules adopted for the second auction of 218-219 MHz Service licenses (Auction No. 13). Action by the Commission on September 7, 1999 by Report and Order and Memorandum Opinion and Order (FCC 99-239). Chairman Kennard, Commissioners Ness, Furchtgott-Roth, Powell, and Tristani. News Media Contact: Meribeth McCarrick at (202) 418-0654; TTY at (202) 418-7233; Wireless Telecommunications Bureau contacts: Jamison Prime, Shellie Blakeney, or Nick Kolovos at (202) 418-0680 (Public Safety and Private Wireless Division) or Robert Allen at (202) 418-0660 (Auctions and Industry Analysis Division). WT Docket No. 98-169, WT Report No. 99-25.