DA 99-277
                                             Released:  February 2, 1999

BY FACSIMILE AND FIRST CLASS MAIL

Meredith S. Senter, Jr., Esq.
Leventhal, Senter & Lerman P.L.L.C.
2000 K Street, N.W.
Suite 600
Washington, D.C. 20006

Dear Mr. Senter:

     This letter is in response to a request for waiver of 47 C.F.R.  90.812 filed on behalf of
Cordell Engineering, Inc. (CEI).  On August 16, 1996, the Commission granted CEI six 900
MHz Specialized Mobile Radio (SMR) licenses for which CEI was the winning bidder in the
auction that concluded on April 15, 1996.  Grant of these licenses was conditioned upon CEI
paying its bids in quarterly installment payments.  At the time of this grant, section 90.812 of the
Commission's rules provided that installment payments for 900 MHz SMR licenses were subject
to 47 C.F.R.  1.2110(e).  This section provided that an entity that was more than 90 days
delinquent in any installment payment was in default; however, upon default or in anticipation of
default, licensees were permitted to request a grace period of three to six months.  47 C.F.R. 
1.2110(e)(4) (1997).

     CEI's first installment payment of $44,998.32 was due on November 30, 1996.  On April
28, 1997, nearly five months after this payment was due, CEI wire transferred $89,996.84 to the
Commission to pay both its first installment and its second installment payment, which was due on
February 28, 1997.  On June 2, 1997, assuming its licenses had been cancelled, CEI requested a
waiver of section 90.812 and asked the Commission to reinstate its licenses.  CEI has timely paid
all subsequent installment payments. 

     Although the Commission's current Part 1 competitive bidding rules allow licensees to pay
installment payments up to 180 days late, as long as they submit late payment fees, these rules
were not in effect at the time CEI missed its payment deadline.  See 47 C.F.R.  1.2110(f)(4);
Amendment of Part 1 of the Commission's Rules--Competitive Bidding Procedures, Third Report
and Order, 13 FCC Rcd. 374 (1997).  Under the Commission's rules in effect at the time, all of
CEI's 900 MHz licenses should have automatically cancelled when it failed to pay its first
installment payment within 90 days of the deadline and also failed to submit a timely grace period
request.          
                          
     The Auctions and Industry Analysis Division (Division) of the Wireless
Telecommuncations Bureau recognizes that the acceptance of CEI's late payment could have been
construed as a waiver of the payment deadline.  The Division also acknowledges that CEI's record
of timely payments over a period of nearly two years since payment of the second installment is
indicative of a commitment on the part of CEI to meet its payment obligations.  The Division
therefore grants CEI a waiver of sections 90.812 and 1.2110(e)(4) with respect to its first
installment payment.  However, we also believe that it is every licensee's responsibility to ensure
that its payments are submitted on time and that CEI should have been more attentive to its
payment schedule.  Therefore, CEI should not receive a complete waiver of the payment deadline. 
In light of this finding, we assess Cordell a late payment fee of 5 percent of the total amount due
in one quarterly installment payment.

     Accordingly, CEI will not be deemed in default on its six 900 MHz SMR licenses if it
makes a payment of $2,249.92, which represents 5 percent of one installment payment for the six
licenses conditionally granted to CEI, no later than 30 days from the date of this letter.  Failure to
timely submit this amount in full by March 4, 1999, will result in the automatic cancellation of
CEI's 900 MHz SMR licenses.  This action is taken in accordance with delegated authority
pursuant to 47 C.F.R.  0.331.  

                         Sincerely,
                       


                         Amy J. Zoslov
                         Chief, Auctions and Industry Analysis Division         
                         Wireless Telecommunications Bureau