Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Amendment of the Commission's ) WT Docket No. 97-82 Rules Regarding Installment Payment) Financing For Personal Communications) Services (PCS) Licensees ) ORDER Adopted: January 7, 1998 Released: January 7, 1998 By the Commission: Commissioners Ness and Powell issuing separate statements. 1. On September 25, 1997, the Commission adopted the Second Report and Order and Further Notice of Proposed Rule Making ("Second Report and Order"), WT Docket No. 97-82, FCC 97-342 (rel. October 16, 1997), establishing January 15, 1998 as the deadline for broadband Personal Communications Services (PCS) C block licensees to elect to continue under their existing installment payment plan or to elect one of the three options. C block licensees must file a written notice of their election with the Wireless Telecommunications Bureau on or before January 15, 1998. The requirements for the contents of the election notice vary depending upon which election is made. For licensees electing the prepayment option, any new monies that will be applied toward the prepayment of retained licenses must be submitted with the election notice on the election date. 2. Pursuant to Section 1.3 of the Commission's rules, the Commission hereby changes the election date from January 15, 1998 to February 26, 1998. Moving the election date will serve the public interest by permitting licensees to submit their election after final disposition of arguments raised on reconsideration. We believe that it is important to provide regulatory stability so that C block licensees and potential bidders can proceed with their plans to finance their business. Licensees are cautioned that this change in the election date is in no way an indication that the Commission plans to depart in any material way from the decisions set forth in the Second Report and Order. We are changing the election date solely in the interest of fairness to all parties. 3. We take this opportuntity to announce that the C block reauction will begin on September 29, 1998. At the appropriate time, we will announce the reauction procedures. We also take this opportunity to clarify that our delegation of authority to the Chief of the Wireless Telecommunications Bureau "to prescribe and set forth procedures for the implementation of the provisions" that were adopted in the Second Report and Order includes the authority to provide for electronic filing of an election notice specified in paragraph 70 of the Second Report and Order and other procedures and instructions to reduce paperwork burdens. 4. Accordingly, IT IS ORDERED that, pursuant to Sections 4(i), 303(r), and 309(j) of the Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i), 303(r), and 309(j), and Section 1.3 of the Commission's rules, 47 C.F.R. § 1.3, the date for C block licensees to file a written election notice, in accordance with the requirements set forth in the Second Report and Order, is changed to February 26, 1998. Since it is necessary for this change to become effective before January 15, 1998, we will make this change effective upon publication of this Order in the Federal Register. FEDERAL COMMUNICATIONS COMMISSION Magalie Roman Salas Secretary Separate Statement of Commissioner Susan Ness Re: Amendment of the Commission's Rules Regarding Installment Payment Financing for Personal Communications Services (PCS) Licensees Last September, the Commission reaffirmed its bedrock commitment to the integrity of the auction process, yet found it possible to offer C-block licensees a limited menu of options for handling the commitments they undertook when they bid successfully at auction. Today, the Commission defers the date by which licensees must elect among these options. Our decision to delay the election date should not be misconstrued. It should not be read as a signal that substantial changes to the options devised in September are probable. Based upon the record to date, I believe it unlikely that such changes will be made. Our decision today is based solely on the desirability of resolving reconsideration petitions before licensees make their elections. We expect to complete that process in advance of the revised February 26, 1998 election deadline to ensure that licensees and their financial partners have all of the information they need to make informed choices. Doing so promotes fairness, certainty, and finality. It should be noted that there is no change in the March 31, 1998 date for resumption of installment payments. Moreover, by this notice we have set September 29, 1998 as the date for the reauction of those licenses that have been returned or forfeited. Our decision in September affirmed our commitment to administer the auctions process with fairness and integrity. In my view, fairness is best served by deferring the election date until we have acted on the reconsideration petitions now before us. A rapid conclusion will bring much-needed certainty to the financial markets and permit licensees to get back to the business of bringing additional choices to the American consumer. SEPARATE STATEMENT OF COMMISSIONER MICHAEL POWELL Re: Amendment of the Commission's Rules Regarding Installment Payment Financing For Personal Communications Services (PCS) Licensees (WT Docket No. 97-82) I support this Order extending the election date for C block licensees to choose from the options adopted in the Commission's September 25, 1997, Second Report and Order and Further Notice of Proposed Rule Making ("Second Report and Order"), WT Docket No. 97-82, FCC 97-342 (released October 16, 1997). I do so because I believe it is critical that we complete our reconsideration of this important matter prior to the parties making their election. It would be unwise for anyone to read into this extension a willingness by this new Commission to vary significantly from the Commission's original Second Report and Order in response to the pending petitions for reconsideration, and I caution parties and the financial markets not to do so.