Report No. WT 98-36      WIRELESS TELECOMMUNICATIONS ACTION October 23, 1998
                                
                      220 MHz  SERVICE AUCTION CLOSES
     Yesterday the Commission's 220 MHz service auction, which began on September 15
1998, closed after 173 rounds raising $21,650,301 in net high bids. The 220 MHz auction
represents the Commission's 17th auction. 

     "The Commission's flexible rules for the 220 MHz service will allow companies to provide
whatever voice, data, or fixed communications services they believe will serve the needs of
consumers in their area.  This could include services such as dispatch or paging," said Chairman
William Kennard.  "This auction has been a prime example of what the Commission's auctions are
all about.  New and existing players have had a chance to quickly acquire licenses and take their
place in the telecommunications marketplace of tomorrow."

     Small businesses won a significant amount of the licenses sold at the auction.  Companies
claiming small business status won:  67% of the Regional Economic Area Group Licenses, 54%
of the Economic Area Licenses and one of three Nationwide licenses.  25 licenses sold were
claimed by entities claiming women-owned status and 21 licenses sold were won by those
claiming minority-owned status. 

     908 licenses were simultaneously auctioned in 3 different-sized geographic areas.  Of
those licenses: 3 are nationwide licenses each authorized to use of 100 KHz paired of bandwidth;
30 are Regional Economic Area Group Licenses (5 licenses in each of the 6 Regional Economic
Areas) each authorized to use of 155 KHz paired of bandwidth; and 875 Economic Area Licenses
(5 licenses in each of the 175 Economic Areas) each license is authorized to use of 100 KHz
paired of bandwidth.   This auction represents Phase II of the licensing of this band.  Phase I
licensing was conducted by lotteries in 1992 and 1993. 
          "We are very pleased that so many of the 220 licenses were won by small businesses," said
Daniel Phythyon, Chief of the Wireless Telecommunications Bureau. "The Commission
continually works to afford opportunities for small businesses.  Now its up to these license
winners to develop innovative business plans and get services out into the hands of consumers." 

     Of the 908 licenses auctioned 693 were sold.  A reauction of unsold licenses is likely take
place in the 2nd quarter of 1999.  Details of the 220 MHz reauction will appear in a future
Wireless Telecommunications Bureau Public Notice.

                           - over - 


     220 MHz auction license winners must make the down payment on their licenses ten
business days after the release of the Wireless Telecommunications Bureau's Public Notice
announcing the close of the auction. Winning bidders must also file their long form applications
with the FCC within the same time period.

                             -FCC -

News Media Contact:  Meribeth McCarrick at (202) 418-0654
Wireless Telecommunications Bureau contacts: Brett Tarnutzer at (202) 418-7142 (Auctions and
Industry Analysis Division) or Scott Mackoul at (202) 418-7240 (Commercial Wireless Division)