Before the

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | * | GEN Docket No. 90-314        |
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| Amendment of the Commission's    | ) | ET Docket No. 92-100         |
| Rules to Establish New Personal  | * |                              |
| Communications Services,         | * | PP Docket No. 93-253         |
| Narrowband PCS                   |   |                              |
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| Implementation of Section 309(j) | * |                              |
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# THIRD REPORT AND order and order on reconsideration {#third-report-and-order-and-order-on-reconsideration .unnumbered}

**Adopted:** April 19, 2001 **Released:** May 3, 2001

By the Commission:

# INTRODUCTION

1.  In this order, we adopt further modifications to our existing
    narrowband Personal Communications Services (PCS) rules, in three
    major respects. First, we will channelize and license the one
    megahertz of narrowband PCS spectrum that has heretofore been held
    in reserve. Second, we will re-channelize 712.5 kilohertz of
    previously channelized spectrum for which licenses have not been
    auctioned. Third, we adopt a narrowband PCS channel band plan that
    includes both nationwide and Major Trading Areas (MTA) licenses.[^1]
    In adopting these new rules, we also address the petitions for
    reconsideration filed in response to the *Narrowband PCS Second
    R&O/Second Further Notice*.[^2] The action we take today resolves
    the remaining issues concerning narrowband PCS in preparation for
    auctioning licenses for the remaining narrowband PCS spectrum in the
    near future.

# BACKGROUND

2.  In the *PCS First Report* and *Order*, the Commission provided for
    the operation of narrowband PCS in three one-megahertz blocks in the
    900 MHz band.[^3] The Commission broadly defined PCS as mobile and
    fixed communications offerings that serve individuals and
    businesses, and can be integrated with a variety of competing
    networks.[^4] The Commission also adopted a spectrum allocation and
    channelization plan, licensing rules, and technical standards for
    narrowband PCS.[^5] In the *Competitive Bidding Third Report and
    Order,* the Commission established competitive bidding rules
    specifically for narrowband PCS.[^6] On reconsideration of that
    *Order*, the Commission revised certain auction procedures, expanded
    special provisions for designated entities in future narrowband
    auctions, and sought comment on additional designated entity
    provisions for any future narrowband PCS auction.[^7]

3.  Currently, as shown in the table below, of the three megahertz of
    900 MHz spectrum allocated for narrowband PCS, two one-megahertz
    spectrum blocks are divided into specific channels for
    licensing.[^8] The remaining one megahertz of narrowband PCS
    spectrum was reserved to accommodate future development of
    narrowband PCS.[^9] The spectrum designated for nationwide,
    regional, and MTA licensing, as well as the reserve spectrum, is
    split between three separate spectrum bands that are not contiguous.

+---------+------------------------------------------------------------+
| **Spe   | **Description**                                            |
| ctrum** |                                                            |
+---------+------------------------------------------------------------+
| 901-902 | -   Nationwide channels (paired with 930 and 940 MHz       |
| MHz     |     frequencies) *Auctioned 1994*                          |
|         |                                                            |
|         | -   Regional channels (paired with 930 and 940 MHz         |
|         |     frequencies) *Auctioned 1994*                          |
|         |                                                            |
|         | -   MTA channels (paired with 930 and 940 MHz frequencies) |
|         |                                                            |
|         | -   Paging response channels (unpaired)                    |
|         |                                                            |
|         | -   Spectrum held in reserve                               |
+---------+------------------------------------------------------------+
| 930-931 | -   Nationwide channels (paired with 901 MHz frequencies)  |
| MHz     |     *Auctioned 1994*                                       |
|         |                                                            |
|         | -   Regional channels (paired with 901 MHz frequencies)    |
|         |     *Auctioned 1994*                                       |
|         |                                                            |
|         | -   MTA channels (paired with 901 MHz frequencies)         |
|         |                                                            |
|         | -   Spectrum held in reserve                               |
+---------+------------------------------------------------------------+
| 940-941 | -   Nationwide channels (paired with 901 MHz frequencies)  |
| MHz     |     *Auctioned 1994*                                       |
|         |                                                            |
|         | -   Regional channels (paired with 901 MHz frequencies)    |
|         |     *Auctioned 1994*                                       |
|         |                                                            |
|         | -   MTA channels (paired with 901 MHz frequencies)         |
|         |                                                            |
|         | -   Nationwide channels (unpaired) *Auctioned 1994*        |
|         |                                                            |
|         | -   MTA channels (unpaired)                                |
|         |                                                            |
|         | -   Spectrum held in reserve                               |
+---------+------------------------------------------------------------+

4.  The Commission conducted a nationwide and a regional narrowband PCS
    auction commencing on July 25, 1994 and October 26, 1994,
    respectively. As a result of these two auctions, ten nationwide
    narrowband PCS licenses and six regional narrowband PCS licenses in
    five different regions (totaling 30 regional licenses) have been
    granted.[^10] A total of 1,862.5 kHz of narrowband PCS spectrum is
    currently available for auction.[^11]

5.  Following the two narrowband PCS auctions, the Commission proposed
    new and modified rules in the *Narrowband PCS R&O/Further Notice* to
    deal with the remaining portion of the narrowband PCS spectrum that
    had not yet been licensed. The Commission proposed, *inter alia*, to
    reallocate all of the Basic Trading Area (BTA) channel blocks and
    some of the MTA channel blocks to create larger service areas,
    eliminate the rule restricting paging response channels to incumbent
    paging licensees, channelize and license the reserved one megahertz
    of narrowband PCS spectrum, and modify its existing construction and
    minimum coverage requirements.[^12]

6.  In the *Narrowband PCS Second R&O/Second Further Notice*, the
    Commission eliminated BTAs as too small to provide a viable
    narrowband service and adopted MTAs for future licensing of
    narrowband PCS, eliminated the narrowband PCS spectrum aggregation
    limit, and eliminated the rule restricting paging response channels
    to incumbent paging licensees while retaining the rule restricting
    use of the response channels to mobile-to-base transmissions. The
    Commission also tentatively concluded that it should proceed with
    the licensing of the one megahertz of narrowband spectrum that had
    been held in reserve and sought comment on how to channelize this
    spectrum. The Commission also sought comment on whether to
    rechannelize the narrowband PCS spectrum that had been channelized
    previously but had not yet been licensed, in order to create larger
    spectrum blocks.

7.  In response to the *Narrowband PCS Second R&O/Second Further
    Notice*, the Commission received two petitions for reconsideration,
    six comments, and four reply comments.[^13] In the petitions for
    reconsideration, PCIA addressed the nature of the narrowband PCS
    band plan and PSMI addressed the Commission's elimination of the
    paging eligibility restriction. The six commenters generally
    supported the Commission's proposed rules, with some reservation.

# discussion

8.  In this order, we address in turn (1) the licensing of the reserve
    spectrum, (2) the band plan for the reserve and other remaining
    spectrum for which licenses have not been auctioned, including
    channel size and services area size for all licenses and (3)
    eligibility restrictions for response channels and the PSMI
    petition. Because there is some overlap of issues raised in the
    petitions for reconsideration and the responses to the Second
    Further Notice of Proposed Rulemaking, we will dispose of each
    petition as we address the pertinent issue. For the reasons
    explained below, we grant the PCIA petition in part, deny the PSMI
    petition, and adopt the proposals of the *Narrowband PCS Second
    R&O/Second Further Notice* with consideration given to both the PCIA
    and WebLink band plan proposals.

## Licensing of the Reserve Spectrum

9.  In the *Narrowband PCS R&O/Further Notice*, the Commission
    tentatively concluded that the one megahertz of spectrum that it had
    reserved in the *PCS First Report and Order* should be channelized
    and licensed. The Commission believed that licensing this spectrum
    would serve the public interest by facilitating competition, opening
    the market to new entrants, and allowing existing narrowband PCS
    licensees to expand their systems through access to additional
    spectrum.[^14]

10. Despite opposition found in the earlier record, the Commission
    tentatively concluded, in the *Narrowband PCS Second R&O/Second
    Further Notice*, that it was in the public interest to proceed with
    licensing the one megahertz of narrowband PCS spectrum that has been
    held in reserve.[^15] The Commission believed that the unencumbered
    spectrum should be made available to those interested in bringing
    new and innovative services to the public, and that the Commission
    should not limit service options by limiting the spectrum
    available.[^16] In that order, the Commission also tentatively
    concluded that licenses for the reserve spectrum should be auctioned
    along with licenses for all of the other remaining narrowband PCS
    spectrum.[^17]

11. All commenters now support licensing the reserve spectrum. We agree
    that licensing the reserve spectrum will help narrowband PCS
    licensees remain competitive with other CMRS providers and will also
    help promote new and innovative services and the opening of the
    market to new entrants.[^18] Consequently, we will proceed with the
    licensing of the reserve spectrum.

## Band Plan for the Reserve Spectrum and Other Remaining Unauctioned Spectrum

12. In the *Narrowband PCS Second R&O/Second Further Notice*, the
    Commission sought comment on how to channelize the reserve spectrum
    and whether to rechannelize the narrowband PCS spectrum that had
    been channelized previously but not yet licensed. The Commission was
    primarily concerned with whether to create larger spectrum blocks
    for potential bidders and service providers. We received comments
    from a variety of service providers, large and small. The views of
    the overwhelming majority of commenters on this issue are
    represented by the PCIA band plan and WebLink's proposed
    modification of the PCIA band plan.[^19]

### Channel Size

13. PCIA proposes a "consensus" band plan that channelizes the reserve
    spectrum, and re-channelizes the other remaining spectrum for which
    licenses have not been auctioned.[^20] This available spectrum
    includes nine frequencies currently available for assignment on an
    MTA basis (two 50 kHz/50 kHz paired channels, five 50 kHz/12.5 kHz
    paired channels, and two 50 kHz unpaired channels), paging response
    channels to be licensed on an MTA basis (eight 12.5 kHz unpaired
    channels), the spectrum of five regional licenses that were
    auctioned but subsequently cancelled (Channel 13, a 50 kHz/50 kHz
    paired channel), the spectrum of one nationwide license that was
    auctioned but subsequently cancelled (a 50 kHz unpaired channel),
    and the one megahertz of reserve spectrum that the Commission had
    proposed to divide into three channels (two 300 kHz unpaired
    channels and one 400 kHz unpaired channel.) Specifically, PCIA urges
    the Commission to rechannelize the remaining spectrum for which
    licenses have not been auctioned into larger blocks that could be
    aggregated or disaggregated to suit the carrier's needs.[^21] Its
    band plan, which proposes a 50 kHz bandwidth as the standard
    building block, accommodates ReFLEX, a new protocol created by
    Motorola to enable two-way paging and messaging.[^22] The PCIA band
    plan proposes MTA-based licenses for one 12.5 kHz unpaired channel
    and one 50 kHz/50 kHz paired channel. It proposes nationwide or
    regional licenses for six 50 kHz unpaired channels, five 100 kHz
    unpaired channels, one 100 kHz/50 kHz paired channel, and four 150
    kHz/50 kHz paired channels.[^23]

14. PCIA asserts that its band plan provides incumbent licensees and
    potential market entrants---both small and large businesses
    alike---with maximum flexibility to construct optimal licensed
    areas.[^24] Further, PCIA states that for those entities that
    require paired spectrum, there are several paired licenses of
    varying sizes.[^25] PCIA argues that there are a number of unpaired
    licenses that can be accumulated by auction participants who might
    desire unpaired spectrum and that the unpaired spectrum can also be
    aggregated during an auction to permit pairing by those applicants
    who desire such pairing.[^26] PCIA argues that the use of channel
    blocks larger than 50 kHz would limit participation by smaller
    players that cannot rely on large spectrum holders to partition or
    disaggregate their spectrum. Companies that require larger blocks of
    spectrum may aggregate 50 kHz blocks to suit their needs.[^27] PCIA
    claims that its proposed band plan would allow for a single auction
    of licenses for the reserve and other remaining spectrum but that
    this might not be true of a different plan.[^28]

15. We agree with PCIA that its channelization plan will serve the
    public interest in that new market entrants and existing licensees
    may utilize the additional spectrum offered in the most efficient
    manner possible. PCIA\'s proposed bandplan is consistent with our
    original bandplan in that both plans rely on a 50 kHz bandwidth as
    the standard building block. PCIA\'s consensus proposal, however,
    includes wider bandwidth channels of 100 kHz up to 300 kHz compared
    with the current rules that vary from 12.5 kHz up to 100 kHz. Most
    commenters support the PCIA band plan or some variation and there is
    no significant industry dispute regarding the channel size and
    pairings aspects of the PCIA band plan. We agree with PCIA and
    Motorola that the band plan using the 50 kHz REFLEX technology
    represents a reasonable compromise between large and small carriers
    because (a) the channel size is consistent with base station and end
    user equipment already in use today; (b) it takes advantage of the
    current large installed base of equipment and infrastructure; (c) it
    allows incumbents to utilize existing advanced messaging
    technologies or develop new ones; and (d) it allows new entrants
    and/or small businesses who don't have research and development
    capital or market share/power to quickly get a competitive system up
    and running. We conclude that the PCIA channelization plan
    represents a reasonable compromise among its industry members that
    optimizes existing technology and telecommunications infrastructure
    to enhance the competitiveness and efficiency of current narrowband
    PCS communications.

### Service Area Size

16. In the *Narrowband PCS Second R&O/Second Further Notice*, the
    Commission eliminated Basic Trading Areas (BTAs) as a geographic
    licensing unit for narrowband PCS.[^29] The Commission found BTAs to
    be too small to provide viable narrowband service. Instead, the
    Commission adopted MTAs as the appropriate service area size for
    future licensing of narrowband PCS.[^30] The Commission concluded
    that narrowband PCS could be licensed using MTAs without
    compromising the goal of ensuring entry for small businesses.[^31]

17. PCIA urges the Commission to reconsider its decision to license all
    remaining spectrum on the basis of MTAs.[^32] PCIA proposes that the
    Commission license the majority of the remaining spectrum on a
    nationwide basis, with the rest licensed based upon regional and MTA
    service areas.[^33] Although PCIA supported MTA-based licensing in
    its comments filed in 1997, it now contends that the
    paging/messaging market has matured and changed such that the
    ability to provide coast-to-coast coverage is of paramount
    importance to many, if not most, licensees. PCIA argues that
    licensing of all remaining spectrum on an MTA basis will impede the
    ability of narrowband PCS licensees to compete with other CMRS
    providers, further that the marketplace demands that wireless
    Internet/data providers be capable of providing nationwide service,
    and that nationwide licenses would reduce the cost of auction
    participation and would minimize interference coordination
    requirements.[^34]

18. WebLink opposes this aspect of PCIA's petition, arguing that the
    Commission should license the remaining spectrum on an MTA
    basis.[^35] WebLink claims that MTA-based licensing is superior to
    nationwide and regional licensing because it can promote viable,
    competitive narrowband PCS businesses by serving the needs of a wide
    range of carriers.[^36] WebLink also claims that it and other
    carriers have relied on the future availability of licenses based on
    small, manageable geographic areas, and that granting the PCIA
    petition would thus cause great harm to such carriers.[^37]
    According to WebLink, on the issue of service areas, the PCIA band
    plan does not represent the consensus of the paging industry and
    "merely represents the views of the larger paging companies and
    conglomerates that voted for the plan."[^38] WebLink argues that the
    current Commission proposal to implement an MTA-based licensing
    scheme will promote viable, competitive narrowband PCS businesses by
    serving the needs of both large and smaller carriers.[^39] WebLink
    also requests that, if the Commission decides to create additional
    regional or nationwide licenses, it do so by using a small portion
    of the one megahertz of reserve narrowband PCS spectrum, instead of
    revisiting its MTA licensing decision in the *Narrowband PCS Second
    R&O/Second Further Notice*.[^40]

19. Our primary concern in this proceeding is to establish a channel
    band plan that is likely to attract a wide variety of service
    providers to narrowband PCS spectrum so as to lead to the rapid
    provision of services to the public. In the *Narrowband PCS Second
    R&O/Second Further Notice*, the Commission noted that the record, at
    that time, contained little support for, and considerable opposition
    to, the establishment of additional nationwide licenses.[^41]
    Consequently, the Commission concluded that MTA-based service areas,
    coupled with the ability to aggregate licenses, would offer
    licensees substantial flexibility to provide wide-area local service
    as well as service on a larger scale.[^42] It is clear from the PCIA
    petition, the WebLink opposition, and the related comments filed by
    PCIA and others that now, at least some form of nationwide or
    regional licensing is desirable or, at least, tolerable to all
    parties, even apparently to WebLink. Although the Commission's
    initial rationale for replacing BTAs with the larger MTAs is still
    valid (*i.e.*, that MTAs represent a basic geographic building block
    that can serve the needs of small and large carriers alike,
    especially coupled with the ability to aggregate licenses),[^43] we
    are persuaded by the comments of PCIA that some level of licensing
    is warranted that includes service areas larger than MTAs.

20. Further, we note the benefits to the public of nationwide licenses.
    Consumers of wireless services depend upon the portability of their
    services and many expect continuous coverage, regardless of where
    they travel across the country. Narrowband PCS providers currently
    face competition from nationwide, broadband wireless carriers who
    are providing seamless, nationwide service including short
    messaging. It appears possible that many narrowband PCS licensees
    will require similar geographic coverage and scope in order to be
    competitive in the wireless marketplace. The question presented to
    the Commission, therefore concerns the proper balance of nationwide,
    regional, and MTA licensing in the reserve and other remaining
    spectrum. PCIA and a majority of its members believe that more
    nationwide licenses are desirable. WebLink and possibly other
    smaller carriers believe more MTA licenses are necessary. We resolve
    this issue by determining what combination of national, regional,
    and MTA licenses will ensure the rapid provision of services to the
    public without compromising the goal of ensuring entry for small
    businesses.

### Revised Band Plan

21. After careful consideration of all pleadings in this proceeding, we
    have developed a new channel band plan for the narrowband PCS
    reserve spectrum and the other remaining spectrum. The new channel
    band plan includes elements of the PCIA band plan, with its emphasis
    on nationwide licensing, and WebLink's proposed modification, with
    its emphasis on MTA licensing. We conclude that this revised plan
    strikes a proper balance between competing interests in a manner
    that will promote competition and stimulate development of new and
    innovative narrowband services. We will channelize the remaining
    narrowband PCS spectrum and will auction licenses as described in
    the table below and the chart in Appendix C. This 1.8625 megahertz
    of spectrum includes: the 1 megahertz of reserve spectrum, 712.5
    kilohertz of previously channelized spectrum, 100 kilohertz from the
    cancellation of five regional licenses,[^44] and 50 kilohertz from
    the cancellation of a nationwide license.[^45]

+-------+--------------------------+-----------------------+---+---+-------+
| **Ch  | **Channel Description**  | **Frequency Bands**   | * |   |       |
| annel |                          |                       | * |   |       |
| Num   |                          |                       | T |   |       |
| ber** |                          |                       | o |   |       |
|       |                          |                       | t |   |       |
|       |                          |                       | a |   |       |
|       |                          |                       | l |   |       |
|       |                          |                       | S |   |       |
|       |                          |                       | p |   |       |
|       |                          |                       | e |   |       |
|       |                          |                       | c |   |       |
|       |                          |                       | t |   |       |
|       |                          |                       | r |   |       |
|       |                          |                       | u |   |       |
|       |                          |                       | m |   |       |
|       |                          |                       | * |   |       |
|       |                          |                       | * |   |       |
+-------+--------------------------+-----------------------+---+---+-------+
| **    |                          |                       |   |   |       |
| Natio |                          |                       |   |   |       |
| nwide |                          |                       |   |   |       |
| Chann |                          |                       |   |   |       |
| els** |                          |                       |   |   |       |
+-------+--------------------------+-----------------------+---+---+-------+
| 18    | One 100 kHz unpaired     | 940.65 -- 940.75 MHz  |   |   | 100   |
|       | channel                  |                       |   |   | kHz   |
+-------+--------------------------+-----------------------+---+---+-------+
| 19-20 | Two 50 kHz/50 kHz paired | 901.3 -- 901.35,      |   |   | 200   |
|       | channels                 | 930.5 -- 930.55 MHz   |   |   | kHz   |
|       |                          |                       |   |   |       |
|       |                          | 901.9 -- 901.95,      |   |   |       |
|       |                          | 930.75 -- 930.8 MHz   |   |   |       |
+-------+--------------------------+-----------------------+---+---+-------+
| 21-22 | Two 50 kHz/150 kHz       | 901.5 -- 901.55, 930  |   |   | 400   |
|       | paired channels          | -- 930.15 MHz         |   |   | kHz   |
|       |                          |                       |   |   |       |
|       |                          | 901.6 -- 901.65,      |   |   |       |
|       |                          | 930.15 -- 930.3 MHz   |   |   |       |
+-------+--------------------------+-----------------------+---+---+-------+
| 23-25 | Three 50 kHz/100 kHz     | 901.45 -- 901.5,      |   |   | 450   |
|       | paired channels          | 940.55 -- 940.65 MHz  |   |   | kHz   |
|       |                          |                       |   |   |       |
|       |                          | 901.55 -- 901.6,      |   |   |       |
|       |                          | 940.3 -- 940.4 MHz    |   |   |       |
|       |                          |                       |   |   |       |
|       |                          | 901.85 -- 901.9,      |   |   |       |
|       |                          | 940.45 -- 940.55 MHz  |   |   |       |
+-------+--------------------------+-----------------------+---+---+-------+
| **    |                          |                       |   |   | **    |
| Natio |                          |                       |   |   | 1,150 |
| nwide |                          |                       |   |   | kHz** |
| Subto |                          |                       |   |   |       |
| tal** |                          |                       |   |   |       |
+-------+--------------------------+-----------------------+---+---+-------+
| #     |                          |                       |   |   |       |
| MTA C |                          |                       |   |   |       |
| hanne |                          |                       |   |   |       |
| ls {# |                          |                       |   |   |       |
| mta-c |                          |                       |   |   |       |
| hanne |                          |                       |   |   |       |
| ls .u |                          |                       |   |   |       |
| nnumb |                          |                       |   |   |       |
| ered} |                          |                       |   |   |       |
+-------+--------------------------+-----------------------+---+---+-------+
| 26-27 | Two 50 kHz unpaired      | 901.35 -- 901.4 MHz   |   |   | 100   |
|       | channels                 |                       |   |   | kHz   |
|       |                          | 901.4 -- 901.45 MHz   |   |   |       |
+-------+--------------------------+-----------------------+---+---+-------+
| 28    | One 50 kHz unpaired      | 940.4 -- 940.45 MHz   |   |   | 50    |
|       | channel                  |                       |   |   | kHz   |
+-------+--------------------------+-----------------------+---+---+-------+
| 29    | One 50 kHz/50 kHz paired | 901.95 -- 902.0,      |   |   | 100   |
|       | channel                  | 930.8 -- 930.85 MHz   |   |   | kHz   |
+-------+--------------------------+-----------------------+---+---+-------+
| 30    | One 50 kHz/100 kHz       | 901.65 -- 901.7,      |   |   | 150   |
|       | paired channel           | 930.3 -- 930.4 MHz    |   |   | kHz   |
+-------+--------------------------+-----------------------+---+---+-------+
| 31    | One 50 kHz/150 kHz       | 901.7 -- 901.75,      |   |   | 200   |
|       | paired channel           | 930.85 -- 931 MHz     |   |   | kHz   |
+-------+--------------------------+-----------------------+---+---+-------+
| 32    | One 12.5 kHz/100 kHz     | 901.8375 -- 901.85,   |   |   | 112.5 |
|       | paired channel           | 940.9 -- 941 MHz      |   |   | kHz   |
+-------+--------------------------+-----------------------+---+---+-------+
| **MTA |                          |                       |   |   | **    |
| Subto |                          |                       |   |   | 712.5 |
| tal** |                          |                       |   |   | kHz** |
+-------+--------------------------+-----------------------+---+---+-------+
|       |                          |                       |   |   |       |
+-------+--------------------------+-----------------------+---+---+-------+
| **    |                          |                       |   | * |       |
| Grand |                          |                       |   | * |       |
| To    |                          |                       |   | 1 |       |
| tal** |                          |                       |   | , |       |
|       |                          |                       |   | 8 |       |
|       |                          |                       |   | 6 |       |
|       |                          |                       |   | 2 |       |
|       |                          |                       |   | . |       |
|       |                          |                       |   | 5 |       |
|       |                          |                       |   | k |       |
|       |                          |                       |   | H |       |
|       |                          |                       |   | z |       |
|       |                          |                       |   | * |       |
|       |                          |                       |   | * |       |
+-------+--------------------------+-----------------------+---+---+-------+

22. We have decided not to create additional regional narrowband PCS
    licenses because of the demonstrated demand for nationwide and MTA
    licenses. PCIA\'s plan is composed of mostly nationwide licenses,
    and as we described above, WebLink has emphasized the importance of
    providing a sufficient amount of spectrum to be licensed on an MTA
    basis. Further, in reviewing the results of the first auction of
    narrowband PCS regional licenses, we find that four entities
    purchased groups of co-channel regional licenses, effectively
    creating four additional nationwide licenses. These aggregated
    licenses comprised two-thirds of the available regional licenses. In
    fact, only two of the thirty available regional licenses were
    purchased as single licenses. By licensing the remaining narrowband
    PCS spectrum on a nationwide and MTA basis, we respond to the
    industry\'s demonstrated demand for nationwide licenses and MTA
    licenses. Furthermore, we provide the flexibility for licensees to
    aggregate MTA licenses to create regional or national service areas
    with boundaries of their choosing, as dictated by market forces and
    consumer demand, rather than set by the Commission.

23. We find our new channel band plan strikes a balance for the
    narrowband PCS band as a whole (*i.e.*, including channels we've
    already licensed). Through this approach we achieve parity between
    the spectrum in MTA licenses and the spectrum in regional licenses
    (*i.e.*, approximately equal) and we create twice as many nationwide
    licenses. This should result in an approximate distribution of
    narrowband PCS spectrum of 66% nationwide, 17% regional, and 17%
    MTA. With respect to the number of licenses issued, the revised
    channel band plan will yield 18 nationwide (5%), 25 regional (6%),
    and 357 MTA (89%) licenses. We believe that the revised channel plan
    represents an appropriate compromise for all narrowband PCS
    carriers, large and small, and fairly balances their interests by
    offering a range of bidding opportunities that allow them to pursue
    local, regional, or nationwide strategies.

## Eligibility Restrictions

24. In 1993, in order to provide an opportunity for incumbent paging
    licensees to upgrade their operations, the Commission set aside 100
    kHz (8 unpaired 12.5 kHz frequencies) of the 3 MHz allocated for
    narrowband PCS to be used for paging response channels, *i.e.*,
    channels used in paired communications with existing one-way paging
    frequencies to provide mobile-to-base station communications.[^46]
    The Commission's intent in establishing these channels was to
    provide a means for one-way (single frequency) paging licensees to
    obtain a second frequency for the purpose of delivering signals back
    from their customers' mobile devices.[^47] Prior to the *Narrowband
    PCS Second R&O/Second Further Notice*, the Commission's rules
    limited eligibility for acquiring narrowband PCS response channels
    to existing paging licensees, *i.e.*, those licensed to operate
    conventional one-way paging base stations under Part 22 or Part
    90.[^48]

25. In the *Narrowband PCS Second R&O/Second Further Notice*, the
    Commission lifted all eligibility restrictions on applying for
    paging response channels, finding that the rules unnecessarily
    excluded other potential users of the response channels.[^49] The
    Commission concluded that lifting the eligibility restrictions would
    encourage entry of new narrowband PCS providers by providing greater
    flexibility to new licensees to use the channels in conjunction with
    other spectrum to provide new services.[^50]

26. PSMI urges the Commission to reconsider its decision and reinstate
    the paging eligibility restriction for the eight 12.5 kHz paging
    response channels. PSMI argues that the Commission's action to
    eliminate the paging eligibility restriction is contrary to the
    public interest because: 1) elimination of the paging response
    channel set-aside creates an impermissible retroactive effect, 2)
    lifting the restriction exceeded the Commission's statutory
    authority, and 3) the public interest would be served by retention
    of the eligibility restriction.[^51]

27. We decline to reinstate the eligibility restrictions that originally
    applied to the paging response channels. The narrowband PCS industry
    has changed dramatically since the Commission set aside these
    channels for the exclusive use of the paging carriers. Other
    narrowband PCS entities and even broadband carriers have expressed
    interest in using the response channels to provide new and
    innovative services for their own customers and for traditional
    paging customers as well. The Commission disagrees with PSMI's
    assertion that retaining the restriction represents a retroactive
    effect precluding paging carriers from ever using the response
    channels. There is no retroactive effect in the Commission
    eliminating the eligibility restrictions because it has not
    prevented PSMI or any such similarly situated carrier from acquiring
    the response channels to expand their one-way systems. Nor has the
    Commission affected the status of any pending application to use
    those response channels. The Commission is entitled to change its
    eligibility criteria in rulemaking proceedings as long as we provide
    an adequate explanation for the change.[^52] With regard to PSMI's
    statutory authority and public interest claims, we conclude the
    Commission acted well within its statutory authority when it lifted
    the restrictions because it did so to increase competition for the
    response channels, not to enrich the Federal treasury, as is alleged
    by PSMI. PSMI incorrectly concludes that the Commission's sole
    motivation to award licenses is to maximize revenue to the Federal
    treasury. On the contrary, the removal of the eligibility
    restrictions will increase competition for the response channels and
    thereby increase the likelihood that licenses for these channels
    will be awarded to those, including paging licensees, that value
    them most highly and consequently may provide service to the public
    most rapidly. Further, lifting the eligibility restrictions will
    encourage entry of new narrowband PCS providers by providing greater
    flexibility to licensees to use these channels, either on a
    stand-alone basis or in conjunction with other spectrum, to provide
    new services.[^53]

# conclusion

28. The action we take today resolves the remaining issues in
    preparation for a narrowband PCS spectrum auction. We believe that
    the new channel band plan we adopt today represents a proper balance
    of the interests and concerns of industry, both large and small
    carriers, and will provide the public with the greatest variety of
    service choices at competitive rates.

# procedural matters

29. A Final Regulatory Flexibility analysis, pursuant to the Regulatory
    Flexibility Act, 5 U.S.C. § 604, is contained in Appendix B.

# ordering clauses

30. Authority for issuance of this Third Report and Order and Order on
    Reconsideration is contained in Sections 4(i), 257, 303(r), and
    309(j) of the Communications Act of 1934, as amended, 47 U.S.C. §§
    154(i), 257, 303(r), and 309(j).

31. Accordingly, IT IS ORDERED that Part 24 of the Commission's Rules IS
    AMENDED as specified in Appendix A, effective 60 days after
    publication in the Federal Register. Information collections
    contained in these rules will be effective upon OMB approval.

32. IT IS FURTHER ORDERED that the Commission's Consumer Information
    Bureau, Reference Information Center, SHALL SEND a copy of this
    Third Report and Order and Order on Reconsideration, including the
    Final Regulatory Flexibility Analysis, to the Chief Counsel for
    Advocacy of the Small Business Administration.

    FEDERAL COMMUNICATION COMMISSION

> Magalie Roman Salas

Secretary

APPENDIX A -- FINAL RULES

Part 24 of Chapter 1 of Title 47 of the Code of Federal Regulations is
amended as follows:

1.  The authority citation for Part 24 continues to read as follows:

**Authority:** 47 U.S.C. 154, 301, 302, 303, 309 and 332.

2.  Section 24.129 is revised to read as follows:

**§ 24.129 Frequencies.**

The following frequencies are available for narrowband PCS.

\(a\) Eighteen frequencies are available for assignment on a nationwide
basis as follows:

\(1\) Seven 50 kHz channels paired with 50 kHz channels:

Channel 1: 940.00-940.05 and 901.00-901.05 MHz;

Channel 2: 940.05-940.10 and 901.05-901.10 MHz;

Channel 3: 940.10-940.15 and 901.10-901.15 MHz;

Channel 4: 940.15-940.20 and 901.15-901.20 MHz;

Channel 5: 940.20-940.25 and 901.20-901.25 MHz;

Channel 19: 930.50-930.55 and 901.30-901.35 MHz; and,

Channel 20: 930.75-930.80 and 901.90-901.95 MHz.

\(2\) Three 50 kHz channels paired with 12.5 kHz channels:

Channel 6: 930.40-930.45 and 901.7500-901.7625 MHz;

Channel 7: 930.45-930.50 and 901.7625-901.7750 MHz; and,

Channel 8: 940.75-940.80 and 901.7750-901.7875 MHz;

\(3\) Two 50 kHz unpaired channels:

Channel 9: RESERVED;

Channel 10: 940.80-940.85 MHz; and,

Channel 11: 940.85-940.90 MHz.

\(4\) One 100 kHz unpaired channel:

Channel 18: 940.65-940.75 MHz.

\(5\) Two 150 kHz channels paired with 50 kHz channels:

Channel 21: 930.00-930.15 and 901.50-901.55 MHz; and,

Channel 22: 930.15-930.30 and 901.60-901.65 MHz.

\(6\) Three 100 kHz channels paired with 50 kHz channels:

Channel 23: 940.55-940.65 and 901.45-901.50 MHz;

Channel 24: 940.30-940.40 and 901.55-901.60 MHz; and,

Channel 25: 940.45-940.55 and 901.85-901.90 MHz.

\(b\) Five frequencies are available for assignment on a regional basis
as follows:

\(1\) One 50 kHz channel paired with 50 kHz channel:

Channel 12: 940.25-940.30 and 901.25-901.30 MHz.

Channel 13: RESERVED.

\(2\) Four 50 kHz channels paired with 12.5 kHz channels:

Channel 14: 930.55-930.60 and 901.7875-901.8000 MHz;

Channel 15: 930.60-930.65 and 901.8000-901.8125 MHz;

Channel 16: 930.65-930.70 and 901.8125-901.8250 MHz; and,

Channel 17: 930.70-930.75 and 901.8250-901.8375 MHz.

\(c\) Seven frequencies are available for assignment on an MTA basis as
follows:

\(1\) Three 50 kHz unpaired channels:

Channel 26: 901.35-901.40 MHz;

Channel 27: 901.40-901.45 MHz; and,

Channel 28: 940.40-940.45 MHz.

\(2\) One 50 kHz channel paired with 50 kHz channel:

Channel 29: 930.80-930.85 and 901.95-902.00 MHz.

\(3\) One 100 kHz channel paired with 50 kHz channel:

Channel 30: 930.30-930.40 and 901.65-901.70 MHz.

\(4\) One 150 kHz channel paired with 50 kHz channel:

Channel 31: 930.85-931.00 and 901.7-901.75 MHz.

\(5\) One 100 kHz channel paired with 12.5 kHz channel:

Channel 32: 940.90-941 and 901.8375-901.85 MHz.

NOTE 1: Operations in markets or portions of markets which border other
countries, such as Canada and Mexico, will be subject to on-going
coordination arrangements with neighboring countries.

3.  Section 24.130 is removed and reserved.

§ 24.130 \[Removed and Reserved\]

**APPENDIX B**

**FINAL REGULATORY FLEXIBILITY ANALYSIS**

(Third Report and Order)

As required by the Regulatory Flexibility Act (RFA),[^54] an Initial
Regulatory Flexibility Analysis (IRFA) was incorporated in Appendix D of
the *Narrowband PCS Second R&O/Second Further Notice* in this
proceeding.[^55] The Commission sought written public comment on the
proposals in the *Second Further Notice,* including comment on the IRFA.
As described below, no commenter raised an issue concerning the IRFA.
The Commission's Final Regulatory Flexibility Analysis (FRFA) in this
Third Report and Order conforms to the RFA.[^56]

**I. Need for and Purpose of this Action:**

This Third Report and Order amends the Commission's rules for narrowband
PCS frequencies. The amendments adopted promote efficient licensing of
narrowband PCS and enhance the service\'s competitive potential in the
Commercial Mobile Radio Service marketplace. The Third Report and Order
also channelizes the reserve narrowband PCS spectrum and re-channelizes
the other remaining unauctioned spectrum, thus offering more spectrum to
incumbent and new market entrants so that they may provide new and
innovative services.

**II. Summary of Significant of Issues Raised by Public Comments in
Response to the IRFA:**

No party filed comments responding to the IRFA.

**III. Description and Estimate of the Number of Small Entities to Which
the Rules Will Apply:**

Under the RFA, small entities may include small organizations, small
businesses, and small governmental jurisdictions, or entities. 5 U.S.C.
§ 601(6). The RFA directs agencies to provide a description of and,
where feasible, an estimate of the number of small entities that may be
affected by the proposed rules, if adopted. The RFA generally defines
the term \"small entity\" as having the same meaning as the terms "small
business," "small organization," and "small governmental jurisdiction."
5 U.S.C. § 601(3). In addition, the term "small business" has the same
meaning as the term "small business concern" under the Small Business
Act. A small business concern is one that: (1) is independently owned
and operated; (2) is not dominant in its field of operation; and (3)
satisfies any additional criteria established by the Small Business
Administration (SBA).[^57] Pursuant to 5 U.S.C. § 601(3), the statutory
definition of a small business applies "unless an agency after
consultation with the Office of Advocacy of the SBA, and after
opportunity for public comment, establishes one or more definitions of
such term which are appropriate to the activities of the agency and
publishes such definition(s) in the Federal Register."

The rules adopted in the Third Report and Order will affect small
businesses that hold or seek to acquire narrowband Personal
Communications Services (PCS) licenses. These entities include small
businesses that obtain nationwide, regional or Major Trading Areas (MTA)
geographic area licenses through auction, assignment, or transfer and
small businesses that acquire partitioned and/or disaggregated MTA,
regional, or nationwide geographic area licenses.

In the future, the Commission will auction 1.8625 megahertz of spectrum
which includes the 1 megahertz of reserve spectrum, 712.5 kilohertz of
previously channelized (but unauctioned) spectrum, 100 kilohertz from
the cancellation of five regional licenses, and 50 kilohertz from the
cancellation of a nationwide license.

The new channel band plan strikes a balance for the narrowband PCS band
as a whole (*i.e.*, including channels the Commission has already
auctioned). Through this approach the Commission will achieve parity
between the spectrum in MTA licenses and the spectrum in regional
licenses (*i.e.*, approximately equal) and will create twice as many
nationwide licenses. This should result in an approximate distribution
of narrowband PCS spectrum of 66% nationwide, 17% regional, and 17% MTA.
With respect to the number of licenses issued, the revised channel band
plan will yield 18 nationwide (5%), 25 regional (6%), and 357 MTA (89%)
licenses.

To ensure meaningful participation of small business entities in the
auctions, the Commission adopted a two-tiered definition of small
businesses in the *Narrowband PCS Second R&O/Second Further
Notice*.[^58] A small business is an entity that, together with
affiliates and controlling interests, has average gross revenues for the
three preceding years of not more than \$40 million. A very small
business is an entity that, together with affiliates and controlling
interests, has average gross revenues for the three preceding years of
not more than \$15 million. The SBA has approved these definitions.

The Commission cannot predict accurately the number of licenses that
will be awarded to small entities in future auctions. However, 4 of the
16 winning bidders in the two previous narrowband PCS auctions were
small businesses, as that term was defined under the Commission's rules.
The Commission assumes, for purposes of the evaluations and conclusions
in this FRFA, that a large portion of the remaining narrowband PCS
licenses will be awarded to small entities. The Commission also assumes
that at least some small businesses will acquire narrowband PCS licenses
by means of the Commission's partitioning and disaggregation rules.

**IV. Summary of Projected Reporting, Recordkeeping, and Other
Compliance Requirements:**

The rules adopted in the Third Report and Order impose no additional
reporting and recordkeeping requirements on large or small businesses.

V. Steps Taken to Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered:

The RFA requires an agency to describe any significant alternatives that
it has considered in reaching its proposed approach, which may include
the following four alternatives: (1) the establishment of differing
compliance or reporting requirements or timetables that take into
account the resources available to small entities; (2) the
clarification, consolidation, or simplification of compliance or
reporting requirements under the rule for small entities; (3) the use of
performance, rather than design standards; and (4) an exemption from
coverage of the rule, or any part thereof, for small entities.[^59]

The rules adopted in this Third Report and Order are designed to
implement Congress' goal of giving small businesses, as well as other
entities, the opportunity to participate in the provision of
spectrum-based services. The rules are also consistent with the
Communications Act's mandate to identify and eliminate market entry
barriers for entrepreneurs and small businesses in the provision and
ownership of telecommunications services. *See generally* 47 U.S.C. §§
257, 309(j).

The Commission finds that establishing a reasonable balance of MTA and
nationwide licensing will serve the needs of a wide range of entities,
including both large and small service providers. The commenting parties
support this conclusion. The Commission finds that consumers of wireless
services depend upon the portability of their services and expect
continuous coverage, regardless of where they travel across the country.
Narrowband PCS providers currently compete with nationwide, broadband
wireless carriers who are providing seamless, nationwide service. The
Commission concludes that all narrowband PCS licensees, especially small
entities, must have similar geographic coverage and scope in order to be
competitive in the wireless marketplace.

The Commission considered and adopted a compromise proposal between PCIA
and WebLink. PCIA and a majority of its members believe that more
nationwide licenses are desirable. WebLink and possibly other smaller
carriers believe more MTA licenses are necessary. The question presented
to the Commission, therefore concerns the proper balance of nationwide,
regional, and MTA licensing in the reserve and remaining unauctioned
spectrum. The Commission resolves the issue by determining a proper
combination of national, regional, and MTA licenses overall that will
ensure the rapid provision of services to the public without
compromising the goal of ensuring entry for small businesses.

**[Report to Congress]{.underline}:** The Commission will send a copy of
this *Third Report and Order and Order on Reconsideration*, including
this FRFA, in a report to be sent to Congress pursuant to the Small
Business Regulatory Enforcement Fairness Act of 1996, *see* 5 U.S.C. §
801(a)(1)(A). In addition, the Commission will send a copy of this
*Third Report and Order and Order on Reconsideration*, including FRFA,
to the Chief Counsel for Advocacy of the Small Business Administration.
A copy of the *Third Report and Order and Order on Reconsideration* and
FRFA (or summaries thereof) will also be published in the Federal
Register. *See* 5 U.S.C. § 604(b).

![](media/image1.wmf)

![](media/image2.wmf)

![](media/image3.wmf)

[^1]: Rand McNally & Company, which owns the copyright to MTAs, has
    granted a blanket license to parties with an interest in this
    proceeding to use MTAs, and there is therefore no impediment to
    their use for narrowband PCS. MTAs are based on the Rand McNally
    1992 Commercial Atlas & Marketing Guide, 123rd Edition, at pages
    38‑39 (MTA Map). Rand McNally organizes the 50 States and the
    District of Columbia into 47 MTAs. The MTA Map is available for
    public inspection in the FCC's Library, Room TW-B505, 445 12^th^
    Street SW, Washington, D.C.

[^2]: Amendment of the Commission's Rules to Establish New Personal
    Communications Services, Narrowband PCS, GEN Docket No. 90-314, ET
    Docket No. 92-100, Implementation of Section 309(j) of the
    Communications Act - Competitive Bidding, Narrowband PCS, PP Docket
    No. 93-253, *Second Report and Order and Second Further Notice of
    Proposed Rulemaking*, 15 FCC Rcd 10456 (2000) *(Narrowband PCS
    Second R&O/Second Further Notice*).

[^3]: Amendment of the Commission\'s Rules to Establish New Narrowband
    Personal Communications Services*,* GEN Docket No. 90-314, ET Docket
    No. 92-100, *First Report and Order,* 8 FCC Rcd 7162 (1993) (*PCS
    First Report and Order*), *on recon., Memorandum Opinion and Order*,
    9 FCC Rcd 1309 (1994) (*PCS MO&O*).

[^4]: *PCS First Report and Order,* 8 FCC Rcd at 7164, ¶ 13; s*ee also*
    47 C.F.R. § 24.5.

[^5]: *Id*. at 7164-71, ¶¶ 15-37, 39-54.

[^6]: Implementation of Section 309(j) of the Communications Act \--
    Competitive Bidding, PP Docket No. 93-253, *Third Report and Order*,
    9 FCC Rcd 2941, 2944-79, ¶¶ 9-89 (1994) (*Competitive Bidding Third
    Report and Order*).

[^7]: Implementation of Section 309(j) of the Communications Act \--
    Competitive Bidding, Narrowband PCS*,* PP Docket No. 93-253*,* and
    Amendment of the Commission\'s Rules to Establish New Narrowband
    Personal Communications Services, GEN Docket No. 90-314, ET Docket
    No. 92-100, *Third Memorandum Opinion and Order and Further Notice
    of Proposed Rule Making*, 10 FCC Rcd 175 (1994) *(Competitive
    Bidding Third MO&O/Further Notice*). The term \"designated entity\"
    refers to small businesses, rural telephone companies, and
    businesses owned by minorities and/or women, collectively.

[^8]: *See* 47 C.F.R. § 24.129; *see also* *Competitive Bidding Third
    Report and Order*, 9 FCC Rcd at 2944-45, ¶¶ 9-10.

[^9]: *Competitive Bidding Third Report and Order,* 9 FCC Rcd at 2944, ¶
    9.

[^10]: The nationwide narrowband PCS auction commenced on July 25, 1994,
    and closed after 47 rounds of bidding over a five-day period. *See*
    "Announcing the High Bidders in the Auction of Ten Nationwide
    Narrowband PCS Licenses; Winning Bids Total \$617,006,674," *Public
    Notice,* PNWL 94-004 (rel. August 2, 1994). The regional narrowband
    PCS auction began on October 26, 1994, and closed on November 8,
    1994, after 105 rounds. *See* "Announcing the High Bidders in the
    Auction of 30 Regional Narrowband (PCS) Licenses; Winning Bids Total
    \$490,901,787," *Public Notice*, PNWL 94-27 (rel. Nov. 9, 1994).
    Certain licenses have been returned or have cancelled for
    nonpayment. We will issue by public notice an inventory of all
    available licenses prior to the next narrowband PCS auction.

[^11]: The remaining channels currently allocated to be licensed as
    narrowband PCS are found in the 901-902, 930-931, and 940-941 MHz
    bands. For the current spectrum and channelization plan, *see
    Competitive Bidding Third Report and Order*, 9 FCC Rcd at 2945, ¶¶
    9-10. *See also* 47 C.F.R. §§ 24.102, 24.129. In addition, licenses
    designated as unpaired response channels have not yet been
    auctioned. *See* 47 C.F.R. § 24.130.

[^12]: Amendment of the Commission\'s Rules to Establish New Personal
    Communications Services, Narrowband PCS, GEN Docket No. 90-314, ET
    Docket No. 92-100, Implementation of Section 309(j) of the
    Communications Act \-- Competitive Bidding*,* Narrowband PCS, PP
    Docket No. 93-253*, Report and Order and Further Notice of Proposed
    Rulemaking*, 12 FCC Rcd 12972, 12984, 12985, ¶¶ 19-20, 22 (1997)
    *(Narrowband PCS R&O/Further Notice*).

[^13]: Personal Communications Industry Association (PCIA) and Paging
    Systems Management filed petitions for reconsideration. PCIA, Space
    Data Corporation (Space Data), WebLink Wireless, Inc. (WebLink) and
    Verizon Wireless Messaging Services, LLC (Verizon) filed comments
    and replies. FreeSpace Communications, LLC (FreeSpace) and Motorola,
    Inc. (Motorola) filed only comments.

[^14]: *Narrowband PCS R&O/Further Notice*, 12 FCC Rcd at 12991, ¶ 34.
    In 1993, the Commission allocated three megahertz of spectrum for
    narrowband PCS. Only two megahertz of this spectrum was divided into
    specific channels and made available for licensing, however, because
    the Commission determined that service proposals for narrowband PCS
    did not require use of the entire narrowband PCS allocation at that
    time. *PCS First Report and Order,* 8 FCC Rcd at 7165, ¶ 19.

[^15]: At the time, most commenters opposed the channelization and
    licensing of the reserve spectrum, stating that narrowband PCS was
    still in the developmental stages and that in 1997, it was still
    unclear how the spectrum would be needed.

[^16]: *Narrowband PCS Second R&O/Second Further Notice* at 10491, ¶ 82.

[^17]: *Id*.

[^18]: See PCIA Comments at 2-3, FreeSpace Comments at 3-5, Space Data
    Comments at 1.

[^19]: The proposal of FreeSpace for the Commission to license the
    reserve spectrum as a single 1 MHz block or, in the alternative, two
    500 kHz blocks is not a viable option in light of the configuration
    of the spectrum at issue. The aggregate 1 MHz of reserve spectrum is
    found in three non-contiguous blocks - a single block of 400 kHz and
    two blocks of 300 kHz.

[^20]: PCIA describes its plan as a "consensus" band plan that "may not
    be the unanimous choice of all industry members" but is "certainly
    the overwhelming preference and drew the most favorable response . .
    . among industry representatives." PCIA Comments at 4. We received
    no opposition to PCIA bandplan proposal with regard to the issue of
    channel size.

[^21]: PCIA Comments at 4-6.

[^22]: *Id*. at 4. By adding a response channel to a traditional paging
    system, Motorola claims on its website that ReFLEX allows carriers
    to provide two-way messaging within a competitive cost, using
    existing telecommunications infrastructure. Motorola Comments at 2.

[^23]: PCIA Comments at 4-6.

[^24]: *Id*. at 5.

[^25]: *Id*.

[^26]: *Id*.

[^27]: *Id*. at 5-6.

[^28]: *Id*. at 6.

[^29]: *Narrowband PCS Second R&O/Second Further Notice* at 10458, ¶ 2.

[^30]: *Narrowband PCS Second R&O/Second Further Notice* at 10462, ¶ 10.

[^31]: *Id*­.

[^32]: PCIA Petition at 2.

[^33]: *Id*. at 2.

[^34]: PCIA Comments at 7-9.

[^35]: WebLink Opposition at 5.

[^36]: *Id*. at 5-6.

[^37]: *Id*. at 11-12.

[^38]: WebLink Comments at 2-3. Although PCIA did not include a detailed
    accounting of the vote that determined the exact nature of the
    "consensus" plan, we received comments from WebLink stating that it
    voted against the band plan and we received comments from Verizon
    endorsing the PCIA band plan.

[^39]: WebLink Opposition at 5-8.

[^40]: *Id*. at 12-13. WebLink Reply Comments at 9-10. Finally, WebLink
    argues that the Commission should not permit PCIA to supplement the
    PCIA petition using the PCIA comments or band plan. Although we
    consider PCIA's petition to be complete, we acknowledge the fact
    that the issues raised in the PCIA Comments are related to those
    filed in its petition. To the extent that is necessary, we will
    consider PCIA's comments to our Second Further Notice of Proposed
    Rulemaking in this docket to be informal comments in relation to
    PCIA's petition.

[^41]: *Narrowband PCS Second R&O/Second Further Notice* at 10463, ¶ 12.

[^42]: *Narrowband PCS Second R&O/Second Further Notice* at 10462, ¶ 10.

[^43]: No commenter argued for the re-institution of BTAs.

[^44]: On March 29, 2000, stations KNKV213 (Channel 13 Region 1),
    KNKV219 (Channel 13 Region 2), KNKV225 (Channel 13 Region 3),
    KNKV231 (Channel 13 Region 4), and KNKV237 (Channel 13 Region 5)
    held by CONXUS Spectrum, Inc., cancelled pursuant to 47 C.F.R.
    §1.2110(f)(4)(iii)-(iv).

[^45]: On December 16, 1998, Destineer Corp. cancelled its authorization
    for station KNKV200. *See* application file number 0000003519. The
    cancelled Destineer license included authorization for 940.75-940.80
    MHz (50 kHz unpaired channel). On May 28, 1999 Skytel
    Communications, Inc., was granted a waiver of Section 24.129 of the
    Commission's Rules in order to modify the authorized frequencies for
    station KNKV208 from 901.775-901.7875 MHz and 930.5-930.55 MHz to
    901.775-901.7875 MHz and 940.75-940.80 MHz. *See* Order, DA 99-1034,
    May 28, 1999. In effect, this waiver permitted Skytel to swap the
    upper half of its paired channel (930.5-930.55 MHz) with the
    spectrum returned to the Commission by Destineer. Thus, the
    930.5-930.55 MHz band is now available for auction.

[^46]: *Narrowband PCS Second R&O/Second Further Notice*, 15 FCC Rcd at
    10466, ¶ 19 *citing*, PCS First Report and Order, 8 FCC Rcd at 7165,
    ¶ 20.

[^47]: *Id*.

[^48]: *Id*.

[^49]: *Id*. at ¶ 20.

[^50]: *Id*.

[^51]: PSMI Petition at 2-8.

[^52]: In the Matter of Amendment of Part 22 of the Commission\'s Rules
    to provide for filing and processing of applications for unserved
    areas in the Cellular Service and to modify other cellular rules, CC
    Docket No. 90-6, In the Matter of Amendment of the Commission\'s
    Rules for Rural Cellular Service, CC Docket No. 85-388, In re
    Cellular Applications for Unserved Areas in MSAs/NECMAs, *First
    Report and Order and Memorandum Opinion and Order on
    Reconsideration*, 6 FCC Rcd 6185, 6193, ¶ 12 (1991), *citing*,
    *United States v. Storer Broadcasting*, 351 U.S. 192 (1956).

[^53]: *Narrowband PCS Second R&O/Second Further Notice* at 10466-10467,
    ¶ 20.

[^54]: 5 U.S.C. § 603. Congress amended the RFA, *id* § 601 *et seq.,*
    by the Contract with America Advancement Act of 1996, Pub. L. No.
    104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA is the
    Small Business Regulatory Enforcement Fairness Act of 1996.

[^55]: Amendment of the Commission's Rules to Establish New Personal
    Communications Services, Narrowband PCS, GEN Docket No. 90-314, ET
    Docket No. 92-100, Implementation of Section 309(j) of the
    Communications Act - Competitive Bidding, Narrowband PCS, PP Docket
    No. 93-253, *Second Report and Order and Second Further Notice of
    Proposed Rulemaking*, 15 FCC Rcd 10456 (2000) *(Narrowband PCS
    Second R&O/Second Further Notice*).

[^56]: *See* 5 U.S.C. § 604.

[^57]: 5 U.S.C. § 632.

[^58]: Amendment of the Commission's Rules to Establish New Personal
    Communications Services, Narrowband PCS, GEN Docket No. 90-314, ET
    Docket No. 92-100, Implementation of Section 309(j) of the
    Communications Act - Competitive Bidding, Narrowband PCS, PP Docket
    No. 93-253, *Second Report and Order and Second Further Notice of
    Proposed Rulemaking*, 15 FCC Rcd 10456 (2000) *(Narrowband PCS
    Second R&O/Second Further Notice*).

[^59]: 5 U.S.C. § 603.