NEWSReport No. DC-2662                      ACTION IN DOCKET CASEOctober 19, 1994

           BROADBAND PCS AUCTION PROCEDURES  GENERALLY UPHELD;
                         SOME MODIFICATIONS MADE 
                            (PP DOCKET 93-253)    

     The Commission has generally upheld the auction design and procedures established in
the Fifth Report and Order in this proceeding for Personal Communications Services in the 2
GHz band (broadband PCS).   In response to several petitions for reconsideration, however, the
Commission made several modifications.

     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.
     
     In today's Order, the Commission re-examined aspects of its rules concerning
simultaneous multiple-round auction design and procedures, application, payment and penalty
procedures, and regulatory safeguards.  In a future Order, it will consider whether the public
interest would be served by changing the entrepreneurs' block rules, as well as other provisions
it established to ensure that small businesses, rural telephone companies and businesses owned
by minorities and women (collectively termed "designated entities") have a meaningful
opportunity to participate in the provision of broadband PCS.

     In the Order adopted today, the Commission:

     -- Increased the flexibility of its rules to allow bidders who have not applied for any of
the same licenses to communicate and enter into consortia or joint bidding arrangements after
the filing of short-form applications, even during the course of the auction.  These relaxed rules
will permit bidders to have greater flexibility to compete in the auction by combining their
resources, provided that no change of control of any applicant takes place.  The Commission
clarified that it intends these provisions to apply to applicants that have not applied for licenses
in any of the same geographic license areas, i.e., the same MTAs for A and B block licenses
or the same BTAs for other broadband licenses;






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     -- Established procedures for divestiture of non-controlling interests in an applicant when
bidders aggregate more PCS spectrum cumulatively than a single entity is entitled to hold under
the rules.  Specifically, the Commission will permit divestiture of non-controlling interests to
bring the entity into compliance with PCS spectrum aggregation limits provided such divestiture
is completed within 90 days of grant of the license.  Provisions are also established whereby
divestiture can be to an interim trustee if a buyer cannot be secured within the required time
frame.  In no event, may the trustee retain the property for longer than six months from grant
of the license; 
     
     -- Clarified the rules concerning information that applicants must provide to the
Commission on their applications to state that only holdings in other concerns that are held by
attributable shareholders in the applicant need to be disclosed; 

     -- Reserved additional flexibility in the activity rules to modify the criteria for moving
from one auction stage to the next and to change the number and spacing of waivers;

     -- Clarified that the FCC has the discretion to lengthen as well as shorten auction bidding
rounds;

     -- Clarified that it will accept short-form applications for filing prior to each individual
broadband PCS auction, rather than having the same filing date for all three auctions;

     -- Stated that a separate Public Notice, to be issued after each auction, will announce the
acceptance of long-form applications filed by the winning bidders; and

     -- Rescinded antenna height restrictions indicating that issues concerning the safe location
and height of PCS antennas will be addressed in a future porceeding.

     The Commission said that these minor modifications to the rules will help to ensure that
the auctions award licenses to those who value them most highly.  They balance the need to
allow bidders the information necessary to express the interdependency of licenses with the need
to minimize the potential for collusive or anticompetitive conduct.  

     Action by the Commission October 19, 1994, by Fourth Memorandum Opinion and
Order (FCC 94- 264).  Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong. 

                                  - FCC -
     
     News Media contact: Audrey Spivack at (202) 418-0500.
     Private Radio Bureau contact: Kathleen O'Brien Ham at (202) 634-2443.
     Office of Plans and Policy contact: Florence Setzer at (202) 418-2038.