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                                                           Before the
               FEDERAL COMMUNICATIONS COMMISSION
                    Washington, D.C.  20554



In the Matter of 

Biennial Regulatory Review -- Amendment of
Parts 0, 1, 13, 22, 24, 26, 27, 80, 87, 90, 95, 97,
and 101 of the Commission's Rules to Facilitate
the Development and Use of the Universal
Licensing System in the Wireless
Telecommunications Services      

Assessment and Collection of Charges for FCC
Proprietary Remote Software Packages, On-Line
Communications Service Charges, and Bidder's
Information Packages in Connection With
Auctionable Services )
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WT Docket No. 98-20






WT Docket No. 95-69

                                
                    SECOND REPORT AND ORDER

     Adopted:  June 10, 1999Released:  June 15, 1999
By the Commission: 

                        I.  INTRODUCTION 

     
    In this Second Report and Order, we adopt changes to our rules and procedures that will allow for
public access through the Internet to application and licensing information in our Universal Licensing
System (ULS) for wireless services.  We provide for similar access via the Internet to application data in
our auctions database.  Specifically, we take the following actions in this order:

         We authorize public access through the Internet to ULS, as soon as technically feasible, for
     purposes of viewing application and licensing information.   This will significantly enhance the
     ability of the public to access public record information regarding wireless licensees at reduced
     cost.   To ensure the security and reliability of the database, however, parties filing applications or
     notifications in ULS will continue to dial directly into the Commission's Wide Area Network (FCC
     WAN) by means of an 800 or 900 number.  

         We authorize access on the Internet to short form applications (Form 175) in our auctions
     database, as soon as technically feasible.  This will enable interested parties and the public to
     review application data pertaining to bidders in ongoing auctions, as well as application data from
     previously completed auctions.  Auction participants will continue to use the 900 number to access
     the FCC WAN for purposes of bidding electronically and reviewing updated auction round results. 

     
                         II.  BACKGROUND

     1.   The Commission initially developed the FCC WAN for purposes of conducting auctions
pursuant to our statutory authority under the Omnibus Budget Reconciliation Act of 1993.  The FCC
WAN is used by bidders and other interested parties to file auction applications electronically, bid
electronically, access auction round results, and query the FCC's auction database.  Users may access the
WAN from their personal computers at remote locations by dialing a 900 number.  Since 1995, the WAN
has been used in over 20 auctions to license a variety of services, including Personal Communications
Service, Specialized Mobile Radio, Local Multipoint Distribution Service, and Location and Monitoring
Service.  

     2.   Since 1997, the Wireless Telecommunications Bureau has expanded use of the FCC WAN to
provide for electronic access to ULS, the new automated licensing system now being deployed to integrate
all existing wireless licensing systems and databases and to facilitate electronic filing of all wireless
applications.  ULS has been used for all post-auction licensing since December 1997, and we have also
converted numerous existing wireless services (including Part 22 Paging and Radiotelephone Service,
Personal Communications Services, Wireless Communications Services, and Cellular Radiotelephone
Service) to ULS for purposes of ongoing application and licensing activity.  Conversion of all remaining
wireless services to ULS will occur in stages during the remainder of 1999.  As a result, use of the FCC
WAN for ULS purposes will continue to increase.

     3.    In a Report and Order adopted July 21, 1995, the Commission established a fee of $2.30 per
minute for 900 number access to the FCC WAN for purposes of bidding electronically, reviewing other
applications (e.g., FCC Form 175 or FCC Form 600 applications), and obtaining available licensing
database information.  The Commission also established charges for obtaining the proprietary bidding
software needed to make use of the system's electronic bidding functions.  These fees help to recover the
costs of developing, maintaining, and upgrading the FCC WAN.  


                        III. DISCUSSION

A.   Internet Access to ULS Application and Licensing Information 

     4.   Because the FCC WAN is a private network accessible only by direct dial-up through an 800
number or 900 number, ULS is not presently accessible through the Internet.  When ULS was initially
designed, the Commission elected not to provide access to ULS through the Internet for several reasons. 
First, providing access to ULS by dial-up to the FCC WAN affords the user more reliable access to the
system because access is not dependent upon a third-party Internet service provider (ISP).  Direct access
also enables Commission staff and technical support personnel to identify and diagnose technical problems
experienced by users, and often to solve them in real time by direct contact with the user.  Second, the FCC
WAN offers superior security and privacy for applicants and licensees engaged in electronic filing because
the information they submit is less susceptible to interception or tampering by unauthorized persons.  In
addition, because the FCC WAN generates a record of all communications with FCC systems, the
Commission can more readily monitor and investigate any possible unauthorized system use, further
enhancing system security and integrity.  

     5.   For all of the above reasons, we continue to believe that reliance on the FCC WAN for
purposes of electronic filing in ULS is a sound approach.  Nevertheless, we note that since ULS was
designed, significant advances have occurred in Internet technology, and particularly in addressing concerns
regarding the integrity and security of data transmitted over the Internet.  In our ULS proceeding, a number
of parties, including the Federal Communications Bar Association, have filed petitions for reconsideration
of the ULS Report and Order to make ULS accessible via the Internet.   Some parties have also expressed
concern about having to pay on-line fees to review license and application information in ULS.

     6.   We conclude that it is in the public interest to allow Internet access to the ULS database for
purposes of public access to application and licensing information.  Unlike electronic filing, the application
and license search functions of ULS are limited to reviewing publicly available data in read-only form, and
do not involve submission or alteration of applications or licensing information.  As a result, there is
significantly less likelihood of unauthorized access or tampering if we allow Internet access to ULS for this
purpose only.
     
     7.  In addition, allowing the public to search for information in ULS via the Internet will vastly
enhance the public's access to such information while significantly decreasing the cost.  For example,
anyone with a computer and an Internet account will be able to access ULS to stay abreast of the status of
licenses and applications.  In addition, the public will be able to use the Internet to access the mapping
capabilities of ULS.  The Geographic Information System (GIS) feature within ULS enables users to create
customized maps to view market areas of geographic-based licenses and site locations of site-based
licensees.  Additionally, GIS will allow users to query by call sign or view all licenses authorized to
operate within a specific range of frequencies.

     8.   For the time being, however, we will not require electronic filing of ULS applications via the
Internet, as some parties have proposed.  While allowing Internet access for filing purposes would confer
some benefits, we continue to believe that considerations of system security and reliability reasonably
outweigh these benefits in the ULS context.  Some commenters point out that we have recently begun to
allow Internet filing in some contexts other than ULS, such as electronic filing of rulemaking comments and
tariffs.  These initiatives are smaller in scope than ULS, however, which accounts for over 90 percent of
the Commission's licensing activity.  Because many of the technical issues relating to Internet reliability
and security are beyond the Commission's control, we prefer to develop experience with Internet filing on a
gradual basis rather than immediately mandating it in ULS.  
     
     9.  We also note that maintaining ULS electronic filing on the FCC WAN will not require
applicants and licensees to pay per minute on-line charges.  Because application filing is subject to a
separate fee schedule under Section 8 of the Communications Act, access to the FCC WAN for purposes
of electronic filing of applications is not subject to on-line charges.  As a result, filers in ULS are charged
only the filing fee and regulatory fee appropriate for their radio service and application purpose, and are
not charged for on-line access while filing.
 
     10.  We emphasize that our decision with respect to ULS does not preclude the future possibility of
allowing filing via the Internet.  We direct the Wireless Bureau to monitor developments in this area, and
delegate authority to the Bureau to establish Internet filing access to ULS if it concludes that considerations
of system reliability and security associated with Internet-based filing in ULS can be adequately
addressed.  

B.   Internet Access to Auctions Information

     11.   As in the case of ULS, access to the Commission's auction system occurs by direct dial-up to
the FCC WAN, which is used primarily by bidders to file auction applications, bid from remote locations,
and access auction round results.  Requiring auction participants to use the WAN to access the auction
system serves the same objectives as in ULS because system security and reliability are particularly
important to the conduct of electronic bidding from remote locations.  As in the case of electronic filers in
ULS, electronic bidders benefit from more reliable access to the auction system, and from the ability of the
Commission's technical support staff to address any technical problems experienced by bidders quickly so
that bidding activity is not disrupted.  In addition, because use of the WAN allows for the recording and
tracking of each individual bid in an auction, the Commission staff can verify the legitimacy of all bids and
more readily investigate allegations of bidding irregularities.   

     12.   While we believe these benefits justify our continuing to use the FCC WAN for short-form
filing and on-line bidding purposes, we believe that application data in our auctions database can be made
accessible to the public via the Internet without diminishing the auction system's security and reliability. 
Currently, persons seeking to review Form 175 applications (other than their own) must access the system
by means of the 900 number and pay on-line charges to do so.  We believe that Form 175 application data
should be accessible on the Internet in read-only form, just as long-form applications and similar data will
be in ULS.  As in the case of ULS, we also delegate authority to the Wireless Bureau to increase the
Internet accessibility of the auctions database if it concludes that considerations of system reliability and
security are fully addressed.  

                       IV.  ORDERING CLAUSE

     13.  Accordingly, IT IS ORDERED that pursuant to the authority of Sections 4(i) and (j), 303(r),
and 309(j) of the Communications Act of 1934, as amended, 47 U.S.C.  154(i) and (j), 303(r), and
309(j), this Second Report and Order is ADOPTED.  


     
                                                   FEDERAL COMMUNICATIONS COMMISSION



                                                   Magalie Roman Salas
                                                   Secretary