PUBLIC NOTICE
FEDERAL COMMUNICATIONS COMMISSION
1919 M STREET, N.W.
WASHINGTON, D.C. 20554                                 DA 98-1022

News media information 202/418-0500     Fax-On-Demand  202/418-2830     Internet:  http://www.fcc.gov    ftp.fcc.gov



                                          Released: May 29, 1998 


   ERRATUM TO FREQUENTLY ASKED QUESTIONS REGARDING THE ORDER ON
    RECONSIDERATION OF THE SECOND REPORT AND ORDER CONCERNING
       THE BROADBAND PERSONAL COMMUNICATIONS SERVICES (PCS)
             C AND F BLOCK INSTALLMENT PAYMENT PLANS


This Erratum corrects one of the answers given in the Public Notice, Frequently Asked Questions
Regarding the Order on Reconsideration of the Second Report and Order Concerning the
Broadband Personal Communications Services (PCS) C and F Block Installment Payment Plans,
DA 98-947, which was released on May 18, 1998.  The advice and rule interpretations provided
in this Public Notice constitute informal staff opinion and are not official Commission decisions or
rulings.

Background: The Affordability Exception

If a C block licensee elects the prepayment option, or elects the disaggregation option and
chooses to prepay the retained spectrum, then the licensee must prepay all of its BTA licenses in
the chosen MTA.  Under the affordability exception, however, a C block licensee that cannot
afford to prepay all of its BTA licenses in an MTA may purchase all of its BTA licenses in the
MTA that it can afford to prepay and surrender the remaining licenses in the MTA that it cannot
afford to prepay.  A licensee can "afford" as many BTA licenses within an MTA that it can
prepay using only its Prepayment Credit.  A licensee's Prepayment Credit consists of two parts:
(1) a percentage of the licensee's down payments on licenses returned to the Commission, plus (2)
installment payments previously paid on licenses returned to the Commission.  


Q:   DO I GET ANY CREDIT FOR THE DOWN PAYMENT ON A LICENSE THAT I
     SURRENDER UNDER THE AFFORDABILITY EXCEPTION?

A:   The correct answer is yes.  The Prepayment Credit includes a 70 percent credit for your
     down payment on any license you surrender under the affordability exception.

     Note that if you made installment payments on the licenses you choose to surrender, the
     down payment portion of your Prepayment Credit will be applied toward the prepayment
     of licenses before the installment payment portion of the Prepayment Credit is applied. 
     The Commission will refund any installment payment amounts (but no down payment
     amounts) that remain unspent after all licenses selected for prepayment have been
     prepaid.

If you have additional questions, please contact: Rachel Kazan or Rita Cookmeyer, Auctions and
Industry Analysis Division, Wireless Telecommunications Bureau, (202)418-0660, or Jack Zinman,
Commercial Wireless Division, Wireless Telecommunications Bureau, (202) 418-7240.