Report WT 97-11                      WIRELESS TELECOMMUNICATIONS ACTION       March 11, 1997

            FCC ADOPTS SERVICE AND AUCTION RULES FOR LMDS
                          (CC Docket 92-297)

     Today the FCC established service and competitive bidding rules for a Local Multipoint
Distribution Service (LMDS), new service utilizing spectrum in the 27.5-28.35 GHz, 29.1-29.25
GHz, and 31.0-31.3 GHz bands.  Our hope is that today's decision will open the door for a new
broadband wireless service that will provide meaningful competition to cable and local exchange
services and will allocate adequate spectrum for the development of new services to be available
to consumers throughout the Nation.

     LMDS  licenses will afford licensees the opportunity to offer a variety of services  such
as multichannel video programming, telephony, video communications and data services.  The
technology developed for use in this frequency band provides very high subscriber capacity for
two-way video telecommunications.  Thus there is sufficient capacity in the proposed LMDS
system design to provide wireless competition to both local exchange carriers and cable television
systems, even in urban areas.  
     
LMDS Service Rules and Related Decisions

     The following rules were adopted today:

     þ  The LMDS spectrum will be licensed by Basic Trading Areas (BTAs), for a total of 984
     authorizations and 1,300 megahertz of spectrum.

     þ Two licenses, one for 1150 megahertz and one for 150 megahertz, will be awarded    for each BTA.

     þ All licensees will be permitted to disaggregate and partition their licenses.

     þ There are no restrictions on the number of licenses a given entity may acquire.

     þ Incumbent local exchange carriers and cable companies may not obtain in-region 1150     MHz licenses for three years.

     þ LMDS may be provided on either a common carrier or a non-common carrier basis,     or both.

     þ Licensees will be required to provide "substantial service" in their service areas within    10 years.

     þ Incumbents in the 31 GHz band will be able to continue their operations, however will
     receive protection from LMDS operations only in the outer 75 MHz (31.0-31.075 and
     31.225-31.300) of the band.  Incumbents will be given 75 days from the date of the
     publication of this item in the Federal Register to apply to modify their licenses to operate
     in the outer 75 MHz of the band and an additional 18 months to implement those
     modifications.

     þ Bidding credits and installment payment plans will be available to small businesses and      entities with average annual gross revenues of not more than $75 million. 

      Action by the Commission March 11, 1997 by Second Report and Order, Order on
Reconsideration, and Fifth Notice of Proposed Rulemaking (FCC 97-82).   Chairman Hundt,
Commissioners Quello and Ness, with Commissioner Chong dissenting in part.  Chairman Hundt,
Commissioners Quello, Chong, and Ness issuing separate statements.  


                               - FCC -

     News Media contact:  Audrey Spivack (202) 418-0654
     Wireless Telecommunications Bureau contact:  Jane Phillips at (202 418-1310, Mark
Bollinger or Jay Whaley at (202) 418-0660 or Bob James at (202) 418-0680