Small Entity Compliance Guide

**Advanced Wireless Services Spectrum**

**(AWS-1 Auction)**

**DA 06-1612**

**WT Docket No. 02-353, ET Docket No. 00-258**

> **This Guide is prepared in accordance with the requirements of
> Section 212 of the Small Business Regulatory Enforcement Fairness Act
> of 1996. It is intended to help small entities---small businesses,
> small organizations (non-profits), and small governmental
> jurisdictions---to comply with the new rules adopted in the
> above-referenced FCC rulemaking docket(s). This Guide is not intended
> to replace the rules and, therefore, final authority rests solely with
> the rules. Although we have attempted to cover all parts of the rules
> that might be especially important to small entities, the coverage may
> not be exhaustive. As a result, in any civil or administrative action
> against a small entity for a violation of rules, the content of the
> Small Entity Compliance Guide may be considered only as evidence of
> the reasonableness or appropriateness of proposed fines, penalties or
> damages. This Guide may, perhaps, not apply in a particular situation
> based upon the circumstances, and the FCC retains the discretion to
> adopt approaches on a case-by-case basis that may differ from this
> Guide, where appropriate. Any decisions regarding a particular small
> entity will be based on the statute and regulations. Interested
> parties are free to file comments regarding this Guide and the
> appropriateness of its application to a particular situation; the FCC
> will consider whether the recommendations or interpretations in the
> Guide are appropriate in that situation. The FCC may decide to revise
> this Guide without public notice to reflect changes in the FCC's
> approach to implementing a rule, or to clarify or update the text of
> the Guide. Direct your comments and recommendations, or calls for
> further assistance, to the FCC's Consumer Center:**

**1-888-CALL-FCC (1-888-225-5322)\
TTY: 1-888-TELL-FCC  (1-888-835-5322)  \
Fax: 202-418-0232**

<fccinfo@fcc.gov>

Table of Contents

[I. Objectives of the ProceedingS 2](#objectives-of-the-proceedings)

[II. Regulations and Policies That the Commission ADOPTED OR Modified,
including compliance requirements
3](#regulations-and-policies-that-the-commission-adopted-or-modified-including-compliance-requirements)

[A. AWS-1 Band Plan 3](#aws-1-band-plan)

[B. Application and Auction Regulations
3](#application-and-auction-regulations)

[1. Incorporation by Reference of the Part 1 Standardized Auction Rules
4](#incorporation-by-reference-of-the-part-1-standardized-auction-rules)

[2. Provisions for Designated Entities
4](#provisions-for-designated-entities)

[3. Provisions for Tribal Lands Bidding Credits
4](#provisions-for-tribal-lands-bidding-credits)

[4. Wireless Telecommunications Services---Applications and Proceedings
(Universal Licensing System)
4](#wireless-telecommunications-servicesapplications-and-proceedings-universal-licensing-system)

[C. Operating and Technical Requirements
5](#operating-and-technical-requirements)

[1. License Period and Substantial Service Requirement
5](#license-period-and-substantial-service-requirement)

[2. Relocation of Incumbents 5](#relocation-of-incumbents)

[3. Cost Sharing 5](#cost-sharing)

[4. Technical Requirements 6](#technical-requirements)

[III. Weblinks 7](#weblinks)

# Objectives of the ProceedingS

In the *AWS-1* *Report and Order*, the FCC adopted service rules for
Advanced Wireless Services (AWS) in the 1710-1755 and 2110-2155 MHz
bands (AWS-1), including provisions for application, licensing,
operating and technical rules, and for competitive bidding. In the
*AWS-1 Order on Reconsideration*, the Commission modified the AWS-1 band
plan and made minor revisions to the AWS-1 service rules in order to
provide additional opportunities for smaller and rural wireless carriers
and to enhance flexibility for potential licensees. Because Section
309(j) of the Communications Act, 47 U.S.C. § 309(j), requires that
mutually exclusive applications for these licenses must be resolved by
competitive bidding, the Commission brought AWS-1 under the standardized
auction rules. In addition, the Commission adopted small business
bidding credits for AWS-1 applicants in an effort to help small entities
attract capital.

In the *AWS Relocation and Cost Sharing Report and Order*, the FCC
adopted relocation procedures to govern the relocation of: (1) Broadband
Radio Service (BRS) licensees in the 2150-2160/62 MHz band; and (2)
Fixed Microwave Service (FS) licensees in the 2110-2150 MHz and
2160-2180 MHz bands. The FCC also adopted cost sharing rules that
identify the reimbursement obligations for AWS and Mobile Satellite
Service (MSS) entrants benefiting from the relocation of FS operations
in the 2110-2150 MHz band and the 2160-2200 MHz band and AWS entrants
benefiting from the relocation of BRS operations in the 2150-2160/62 MHz
band. These relocation policies are designed to allow early entry for
new technology providers by allowing providers of new services to
negotiate financial arrangements for reaccommodation of incumbent
licensees while ensuring an orderly and expeditious transition of, with
minimal disruption to, incumbent BRS operations from the 2150-2160/62
MHz band and FS operations from the 2110-2150 MHz and 2160-2180 MHz
bands.

# Regulations and Policies That the Commission ADOPTED OR Modified, including compliance requirements 

## AWS-1 Band Plan

In the *AWS-1 Order on Reconsideration,* the Commission adopted a final
band plan for AWS-1 as follows:

Geographic Number of

> [Blocks]{.underline} [Pairings]{.underline} [Amount]{.underline}
> [Area]{.underline} [Licenses]{.underline}
>
> A 1710-1720 and 2110-2120 MHz 2x10 RSA/MSA 734
>
> B 1720-1730 and 2120-2130 MHz 2x10 EA 176
>
> C 1730-1735 and 2130-2135 MHz 2x5 EA 176
>
> D 1735-1740 and 2135-2140 MHz 2x5 REAG 12
>
> E 1740-1745 and 2140-2145 MHz 2x5 REAG 12
>
> F 1745-1755 and 2145-2155 MHz 2x10 REAG 12

The different geographic license areas, and the number of each type
covering the 50 states, Puerto Rico, the U.S. Virgin Islands, Guam,
American Samoa, the Northern Mariana Islands and the Gulf of Mexico,
are:

-   RSA/MSA --- Rural Service Areas and Metropolitan Service Areas are
    relatively small geographic areas defined by section 27.6(h)(1) of
    the Commission's Rules, 47 C.F.R.§ 27.6(h)(1). There are a total of
    734 RSAs and MSAs.

-   EA --- Economic Areas are 176 somewhat larger geographic areas
    defined by section 27.6(a) and (h)(2) of the Commission's Rules, 47
    C.F.R. § 27.6(a) and (h)(2).

-   REAG --- Regional Economic Areas are 12 relatively large geographic
    areas defined by section 27.6(a) and (h)(3) of the Commission's
    Rules, 47 C.F.R. § 27.6(a) and (h)(3).

    At any time following grant of their licenses, AWS-1 licensees may
    apply to the Commission to partition their licensed geographic
    service area or disaggregate their licensed spectrum. Further
    information about the process and requirements are provided in
    Section 27.15 of the Commission's Rules, 47 C.F.R. § 27.15.

## Application and Auction Regulations

The *AWS-1 Report and Order* and *AWS-1 Order on Reconsideration* do not
establish new reporting, recordkeeping, or other compliance
requirements, but extend the Commission's existing Part 1 application
and competitive bidding rules to Advanced Wireless Services. *See* 47
C.F.R. §§ 1.2105 (short-form applications), 1.2107 (long-form
applications); *see also* 47 C.F.R. §§ 1.901-1.981 (application
requirements and procedures). While these application requirements are
new with respect to applicants in Advanced Wireless Services, they are
substantially consistent with the application requirements the
Commission has applied to other auctionable services for several years.

The requirement of filing applications on appropriate forms is necessary
in order to ensure that applicants are qualified to participate in
auctions and hold licenses. Certain information required on FCC Form 175
is also necessary to ensure that only applicants that qualify as small
businesses or very small businesses receive the bidding credits offered
to such entities.

### Incorporation by Reference of the Part 1 Standardized Auction Rules

As noted above, the Commission decided in the *AWS-1 Report and Order*
to conduct an auction of the AWS-1 licenses in conformity with the
general competitive bidding rules in Part 1, Subpart Q, of the
Commission\'s Rules, 47 C.F.R. §§ 1.2101-1.2114. Procedures and
requirements regarding electronic filing in the FCC Auction System,
including application deadlines, are presented in public notices issued
by the Commission or the Wireless Telecommunications Bureau. These
public notices are set forth on the Bureau's Auctions website, at
<http://wireless.fcc.gov/auctions>.

### Provisions for Designated Entities

Also, as noted above, the Commission determined that bidding credits
should be made available to small business AWS-1 applicants to assist
them with attracting capital. For AWS-1, a **small business** is defined
as an entity with average annual gross revenues for the three preceding
years not exceeding \$40 million, and a **very small business** is
defined as an entity with average annual gross revenues for the three
preceding years not exceeding \$15 million. The Commission will make
available bidding credits of 15 percent for small businesses and 25
percent for very small businesses. These bidding credits are consistent
with the Commission's standardized schedule of bidding credits at 47
C.F.R. § 1.2110(f)(2).

The Commission recently revised its designated entity rules to ensure
that the recipients of small business bidding credits are bona fide
small businesses that use their licenses directly to provide
facilities-based telecommunications services for the benefit of the
public.  The new rules both limit the award of designated entity
benefits if any applicant or licensee has a \"material
relationship" created by certain agreements with one or more entities
for the lease or resale of its spectrum capacity, and set out new
standards for the payment of unjust enrichment.  *See* 47 C.F.R. §§
1.2110(b)(3)(iv)(A) -- (B) (designated entities) and 1.2111 (unjust
enrichment).

### Provisions for Tribal Lands Bidding Credits

In addition to the small business bidding credits described above, a
tribal land bidding credit is available to any winning bidder when it
commits to deploying facilities and providing wireless services to
qualifying tribal lands. For this purpose, qualifying tribal lands are
defined as federally-recognized tribal areas that are either unserved by
any telecommunications carrier or that have a telephone service
penetration rate of 85% or less. The tribal lands bidding credit is in
addition to any other bidding credit for which the applicant qualifies,
such as the small business bidding credit. Further information on tribal
lands bidding credits can be found on the Commission's website, at
[http://wireless.fcc.gov/auctions/tribal.](http://wireless.fcc.gov/auctions/default.htm?job=tribal_bidding)

### Wireless Telecommunications Services---Applications and Proceedings (Universal Licensing System)

In the *AWS-1 Report and Order*, the Commission noted that AWS-1
long-form applicants and licensees will be subject to the application
filing procedures for the Universal Licensing System (ULS), as set forth
in Part 1, Subpart F of the Commission's Rules, 47 C.F.R. §§
1.901-1.981. The ULS is the Commission's consolidated database,
application filing system and processing system for all wireless radio
services. It supports electronic filing of all applications and related
documents by applicants and licensees, and provides public access to
licensing information. It is accessible through the Commission's
internet website, at <http://wireless.fcc.gov/uls>.

## Operating and Technical Requirements

### License Period and Substantial Service Requirement

AWS-1 licenses issued on or before December 31, 2009, will have a term
of fifteen years. For AWS-1 licenses issued after that date, the license
term will not exceed ten years from the date of initial issuance or
renewal.

AWS-1 licensees must make a showing of "substantial service" in their
license area within the license term. "Substantial service" is defined
as "service which is sound, favorable, and substantially above a level
of mediocre service which just might minimally warrant \[license\]
renewal." If a licensee fails to meet this requirement, its license will
be forfeited and it will be ineligible to regain it.

### Relocation of Incumbents

Both the 1710-1755 and 2110-2155 MHz bands currently have non-AWS
incumbent operations, many of which must be relocated to other spectrum
or other facilities before AWS-1 operations can commence.

-   Federal Government stations in the 1710-1755 MHz band will be
    relocated using AWS-1 auction proceeds. Until that occurs, a statute
    (the Commercial Spectrum Enhancement Act) requires the FCC to
    condition AWS-1 licenses by requiring that commercial licensees
    "cannot cause harmful interference to such Federal \[incumbents\]. .
    . ." Information concerning these Federal Government operations is
    available on the National Telecommunications and Information
    Administration's website at:
    <http://www.ntia.doc.gov/osmhome/reports/specrelo/index.htm>**.** A
    public notice with guidance concerning coordination procedures in
    the 1710-1755 MHz band is accessible on the FCC's website at:
    <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-50A1.pdf>.

-   Non-Federal Government operations will be relocated using the
    procedures adopted in the *AWS Relocation and Cost Sharing Report
    and Order*, which generally follows the Commission's longstanding
    relocation (and cost sharing) policies delineated in the Emerging
    Technologies proceeding, and as modified by subsequent decisions.

    -   Fixed point-to-point microwave systems, authorized under Parts
        22 or 101 of the Commission's rules, will maintain primary
        status in the 2110-2150 MHz band unless and until an AWS or
        other emerging technology (ET) licensee requires use of the
        spectrum, in which case the AWS or other ET licensee is required
        to relocate the existing microwave licensees in these bands if
        interference to the existing microwave licensee would occur.

    -   Similarly, eligible BRS operations in the 2150-2160/62 MHz band
        will be relocated to other spectrum. Until that occurs, AWS
        licensees in the 2150-2160/62 MHz band, prior to initiating
        operations from any base or fixed station that is co-channel to
        the 2150-2160/62 MHz band, must relocate any incumbent BRS
        system that is within the line of sight of the AWS licensee's
        base or fixed station. See 47 C.F.R. §§ 27.1132, 27.1255(a).

### Cost Sharing

Long-standing Commission relocation policies require new licensees who
benefit from the clearing of spectrum to reimburse incumbents for their
reasonable band clearing costs. AWS-1 licensees will carry out this
responsibility with respect to non-Federal Government operations in the
2110-2155 MHz band using cost-sharing mechanisms adopted in the *AWS
Relocation and Cost Sharing Report and Order*. Cost sharing will be
administered by a clearinghouse(s) to be selected by the FCC's Wireless
Telecommunications Bureau. AWS licensees will be required to file with
the clearinghouse:

-   claims for reimbursement under the cost sharing plan within 30
    calendar days of the date a relocation agreement is signed with an
    incumbent, *see* 47 C.F.R. § 27.1166, and

-   notices containing site-specific technical data prior to initiating
    operations for a newly constructed site or modified existing site,
    *see* 47 C.F.R. § 27.1170. The clearinghouse will use this data to
    determine whether any reimbursement obligations exist.

### Technical Requirements

*Power limits and possible coordination*:

-   2110-2155 MHz --- For a fixed or base station transmitting in the
    2110-2155 MHz band and located in a county with a population density
    of 100 or fewer persons per square mile (based upon the most
    recently available population statistics from the Bureau of the
    Census), power is limited to a peak transmitter output power of 200
    watts and to a peak equivalent isotropically radiated power (EIRP)
    of 3280 watts. At any other location, power is limited to a peak
    transmitter output power of 100 watts and an EIRP of 1640 watts. A
    licensee operating a fixed or base station with a power of more than
    1640 watts EIRP must coordinate its operations in advance with:

    -   All Government and non-Government satellite entities in the
        2025-2110 MHz band,

    -   All Broadband Radio Service (BRS) (formerly Multipoint
        Distribution Service or MDS) licensees authorized under Part 27
        (formerly Part 21) of the Commission's Rules operating in the
        2155-2160 MHz band within 120 kilometers (75 miles), and

    -   All AWS-1 licensees operating in the 2110-2155 MHz band within
        120 kilometers (75 miles).

-   1710-1755 MHz --- For a fixed, mobile or portable (handheld) station
    transmitting in the 1710-1755 MHz band, power is limited to a peak
    EIRP of one watt, and mobile and portable stations must use a means
    for limiting power to the minimum necessary for successful
    communications.

    *Antenna height limits*:

-   Fixed stations transmitting in the 1710-1755 MHz band are limited to
    a maximum antenna height of ten meters above ground.

    *Signal strength limits*:

-   For 2110-2155 MHz, the predicted or measured median field strength
    at any location on the geographical border of a licensee's service
    area must not exceed 47 dBμ V/m unless the affected licensee in the
    adjacent service area agrees to a greater field strength. This limit
    applies both to initial service areas and to partitioned service
    areas.

    *Emission limits*:

-   For both the 1710-1755 and 2110-2155 MHz bands, the power of any
    emission outside a licensee's frequency block must be reduced below
    the transmitter power (P) by at least 43 + 10 log~10~ (P) dB.
    (Section 27.53(g) of the Commission's Rules, 47 C.F.R. § 27.53(g),
    contains more information about this limit.)

    *Other protection requirements*:

-   Prior to operating a base or fixed station, AWS-1 licensees must
    coordinate the proposed operation with incumbent fixed
    point-to-point microwave stations in the 2110-2155 MHz band. (*See*
    47 C.F.R. §§ 27.1111, 27.1131.)

-   Any AWS-1 licensee in the 2110-2180 MHz band that causes actual and
    demonstrable interference to a BRS licensee in the 2150-2160/62 MHz
    band must take steps to eliminate the harmful interference, up to
    and including relocation of the BRS licensee. (*See* 47 C.F.R. §§
    27.1132, 27.1255(b).)

-   AWS-1 licensees must determine all Broadcast Auxiliary Service (BAS)
    and Cable Television Radio Service (CARS) stations operating in the
    2025-2110 MHz band in their area of operation, and coordinate
    proposed base and fixed stations with them before beginning
    operations. (*See* 47 C.F.R. § 27.1133.)

-   AWS-1 licensees must protect Federal Government stations operating
    in the 1710-1755 and 1755-1761 MHz bands. They must also protect
    certain other Government stations operating in the 1675-1700 and
    1675-1710 MHz bands if notified of interference. (*See* 47 C.F.R. §
    27.1134.)

-   AWS-1 licensees must protect non-Federal Government receivers
    operating in the 1675-1710 MHz Meteorological-Satellite Service if
    notified of interference. (*See* 47 C.F.R. § 27.1135.)

-   AWS-1 licensees that construct or modify towers in the immediate
    vicinity of AM broadcast stations are responsible for correcting any
    disturbance in the AM station antenna pattern that causes operation
    outside the AM station's authorized radiation limits. (*See* 47
    C.F.R. § 27.63.)

# Weblinks

-   "47 C.F.R." refers to the U.S. Code of Federal Regulations (FCC
    rules).

> **[[http://www.access.gpo.gov/cgi-bin/cfrassemble.cgi?title=200547]{.underline}](http://www.access.gpo.gov/cgi-bin/cfrassemble.cgi?title=200547)**

-   *AWS-1 Report and Order*, FCC 03-251, released November 25, 2003.

> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-03-251A1.pdf>
>
> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-03-251A1.doc>
>
> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-03-251A1.txt>

-   *AWS-1 Order on Reconsideration*, FCC 05-149, released August 15,
    2005:

> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-149A1.pdf>
>
> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-149A1.doc>
>
> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-149A1.txt>

-   *AWS Relocation and Cost Sharing Report and Order*, FCC 06-45,
    released April 21, 2006:

> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-45A1.pdf>
>
> http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-45A1.doc

-   *Designated Entity Second Report and Order and Second Further Notice
    of Proposed Rulemaking*, FCC 06-52, released April 25, 2006:

<http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-52A1.pdf>

http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-52A1.doc

-   *Designated Entity Order on Reconsideration of the Second Report and
    Order*, FCC 06-78, released June 2, 2006:

<http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-78A1.pdf>

http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-78A1.doc

-   *Public Notice*, The Federal Communications Commission and the
    National Telecommunications and Information
    Administration---Coordination Procedures in the 1710-1755 MHz Band,
    FCC 06-50, released April 20, 2006:

    <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-50A1.pdf>

    <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-50A1.doc>

    <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-50A1.txt>

-   *Public Notice,* Auction of Advanced Wireless Services Licenses
    Scheduled for June 29, 2006; Notice and Filing Requirements, Minimum
    Opening Bids, Upfront Payments and Other Procedures for Auction No.
    66, FCC 06-47, released April 12, 2006.

> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-299A1.pdf>
>
> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-299A1.doc>
>
> [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-299A1.txt](http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-06-299A1.doc)

-   *Public Notice,* Auction of Advanced Wireless Services Licenses
    Rescheduled for August 9, 2006; Revised Schedule, Filing
    Requirements and Supplemental Procedures for Auction No. 66, FCC
    06-71, released May 19, 2006.

> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-71A1.pdf>
>
> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-71A1.doc>
>
> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-06-71A1.txt>

-   FCC AWS Information website:

> [http://wireless.fcc.gov/services/aws](http://wireless.fcc.gov/services/aws/)

-   FCC Auctions website:

> <http://wireless.fcc.gov/auctions>

-   FCC Universal Licensing System website:

> <http://wireless.fcc.gov/uls>

-   FCC Tribal Lands website:

> <http://wireless.fcc.gov/auctions/tribal>

-   FCC Tribal Lands Small Entity Compliance Guide:

> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-3713A1.pdf>

-   National Telecommunications and Information Administration (NTIA)
    website (information concerning Federal Government operations in the
    1710-1755 MHz band):

> **[<http://www.ntia.doc.gov/osmhome/reports/specrelo/index.htm>]{.underline}**