FOR IMMEDIATE RELEASE NEWS MEDIA CONTACT:

SEPTEMBER 16, 1999 Meribeth McCarrick at (202) 418-0654

**FCC AFFIRMS RESALE RULE BUT RELAXES CERTAIN**

**OBLIGATIONS IN ORDER TO PROMOTE COMPETITION**

# Washington, D.C. \-\-- The Federal Communications Commission (FCC) retained its 

# wireless resale rule but clarified the rule and relaxed certain obligations in order to promote wireless competition. Specifically, the agency exempted from the scope of its resale rule: bundled customer premises equipment (CPE); specialized mobile radio (SMR) providers that do not utilize in-network 

# switching facilities; and C, D, E, and F block personal communications services (PCS) licensees 

# not under common ownership with cellular or A or B block PCS licensees. The resale rule for all other cellular, SMR and broadband PCS carriers will expire (or sunset) on November 24, 2002.

In the First Report and Order in this docket, the FCC established a rule
that prohibits certain providers of Commercial Mobile Radio Services
(CMRS) from restricting the resale of their services during a
transitional period. This resale rule, which previously had applied only
to cellular providers, was extended to broadband PCS and certain SMR
providers. The FCC also decided to sunset this rule five years after the
date of the award of the last group of initial licenses for broadband
PCS, November 25, 1997. Accordingly, the resale rule is set to expire on
November 24, 2002.

[Specifics of Today's Action]{.underline}:

Today the FCC generally affirmed its decisions in the First Report and
Order to extend the cellular resale rule to include certain broadband
PCS and SMR providers and to sunset the rule on November 24, 2002.
However, the agency modified its initial decision in the following three
key respects:

Removed CPE in bundled packages from the scope of the resale rule.

-   Revised the scope of the resale rule to exclude all C, D, E, and F
    block PCS licensees that do not own and control or are not owned and
    controlled by cellular or A or B block PCS licenses, and further
    indicated it would entertain waivers for C,D,E, and F block licenses
    that may not fit under the literal terms of the exclusion on a
    case-by-case basis.

-   Exempted from the rule all SMR (and other CMRS) providers that do
    not utilize in-network switching facilities.

The FCC also denied a Petition for Reconsideration of its denial of a
request for forbearance from the resale rule filed by the Broadband
Personal Communications Services Alliance of the Personal Communications
Industry Association (PCIA), pursuant to Section 10(a) of the
Communications Act. Although competition continues to develop in the
wireless telephony market, conditions are not sufficiently different to
support a change in the sunset date of the resale rule.

Action by the Commission September 15, 1999, by Memorandum Opinion and
Order on Reconsideration (FCC 99-250). Chairman Kennard, Commissioners
Ness and Tristani, with Commissioners Furchtgott-Roth and Powell
concurring in part, dissenting in part and issuing separate statements.

News Media Contact: Meribeth McCarrick at (202) 418-0654; TTY at (202)
418-7233; or e-mail at mmccarri@fcc.gov

Wireless Bureau contacts: Jane Phillips (202) 418-1310, e-mail
jephillips@fcc.gov; Stacy Jordan at (202) 418-1310, e-mail
stjordan@fcc.gov or TTY at (202) 418-7233.

WT Report No. 99-28

CC Docket No. 94-54

WT Docket No. 98-100

\- FCC