Before the

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | * |                              |
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| Interelectronics Corporation     | ) |                              |
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| Request for Waiver of Section    | * |                              |
| 22.655                           |   |                              |
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**ORDER**

**Adopted: April 2, 2001 Released: April 4, 2001**

By the Chief, Commercial Wireless Division, Wireless Telecommunications
Bureau:

1\. This order addresses a petition for reconsideration filed by
Interelectronics Corporation (Interelectronics) on December 8, 1999.
Interelectronics seeks reconsideration of the decision of the Wireless
Telecommunications Bureau, Commercial Wireless Division, Licensing and
Technical Analysis Branch (Branch), which denied Interelectronics's
request for a waiver of section 22.655 of the Commission's rules.[^1]
For the reasons discussed below, we grant Interelectronics's petition in
part and grant a partial waiver of rule section 22. 655.[^2]

2\. **Background.** On August 19, 1989, the Commission reallocated all
of the 470-512 MHz frequencies in the New York City area from two-way
common carrier mobile use to common carrier control use.[^3]
Interelectronics sought reconsideration of the Commission's reallocation
plan, arguing that it was an incumbent licensee that provided mobile
communications service on the 470-512 MHz band for a large number of
users, and therefore should be able to retain channels on that band to
service its existing and future customers. On July 20, 1992, the
Commission granted Interelectronics's Petition for Partial
Reconsideration and determined that Interelectronics would be permitted
to operate on five channels for mobile communications use.[^4] However,
Interelectronics was required to file quarterly traffic usage reports,
which are used to determine if the number of frequency pairs needed to
maintain a .25 blocking probability has decreased, so that excess pairs
can be reallocated to control use.[^5]

3\. In March 1993, Interelectronics filed a request for a waiver of rule
section 22.655, arguing that the quarterly traffic reports were unduly
burdensome, and had no public benefit because it was the only licensee
authorized to use the 470-512 MHz frequencies in New York City, and
therefore no other licensee could receive the reallocated frequencies.
On August 2, 1993, the Mobile Services Division denied
Interelectronics's request and stated that the quarterly traffic usage
reports were necessary to determine whether the number of frequency
pairs needed to maintain a .25 blocking probability had decreased, so
that excess pairs could be reallocated to control use, not for use by
other licensees.[^6]

4\. On August 27, 1997, the Branch denied Interelectronics's second
request for a waiver of Section 22.655 of the Rules,[^7] wherein
Interelectronics argued that the quarterly traffic requirements were
unnecessary. The Branch stated that Interelectronics presented no new
arguments in support of its request.[^8] On March 18, 1999,
Interelectronics submitted a third request for waiver of 22.655, arguing
again that the traffic usage reports were unnecessary, and stating that
7 out of 24 channels in the 470-512 MHz band allocated in the New York
City market were unassigned, while the demand for mobile service
continued to grow.[^9] Interelectronics further stated that traffic
usage studies conducted over the past six years demonstrated that the
frequencies assigned to Interelectronics continue to be fully utilized
and that the reports were costly and unduly burdensome.[^10] On November
26, 1999, the Branch denied Interelectronics's third waiver request and
stated that Interelectronics failed to address the purpose of the
channel use reports.[^11] The Branch maintained that it expected a
reduction in two-way service subscribership on conventional stations as
competition increased and, therefore, Interelectronics failed to
demonstrate that there was no longer a need for traffic usage
reports.[^12] On December 8, 1999, Interelectronics filed a petition for
reconsideration, stating that the Commission "failed to consider"
arguments advanced by Interelectronics in support of its waiver
request.[^13]

5\. **Discussion.** Interelectronics has presented no new arguments and
we are not persuaded that quarterly traffic reports required under
section 22.655 are no longer necessary. However, we recognize that the
quarterly traffic report requirement is a substantial burden on
Interelectronics and that Interelectronics's traffic reports demonstrate
that its channels have maintained above a .25 blocking probability for
the past six years. We therefore find that the grant of a partial waiver
from the requirements of section 22.655 is appropriate, as discussed
below.

6\. We will continue to require Interelectronics to submit a quarterly
report, which must include the number of mobile units in service during
each of the days specified.[^14] However, Interelectronics will no
longer be required to submit the number of calls completed each hour, as
currently required under section 22.655 (a)(2).[^15] Under section
22.655 (a)(3),[^16] Interelectronics is required to provide the total
number of minutes during each hour that the channels were utilized for
communications by the mobile units. Measurements are currently required
to be taken during the busiest 12-hour period on 3 days (within a 7-day
period) having normal usage.[^17] We will require Interelectronics to
provide the total number of minutes only *during the busiest hour* of
each of 3 days (within a 7-day period) that the channels were utilized
for communications by the mobile units. Also, Interelectronics will no
longer be required to provide the average channel usage for the busiest
hour during the 3-day period, as currently required under section 22.655
(a)(4).[^18]

7\. Interelectronics argues that a permanent waiver of rule section
22.655 is appropriate because there is no longer a need for additional
frequencies in the 470-512 MHz bands for control station use, as
satellite services have become available for controlling paging
transmitters at comparatively low cost, which offer advantages control
stations do not. [^19] While we grant Interelectronics a partial waiver
to reduce its administrative burden, we find that a grant of a complete
waiver of section 22.655 is inappropriate at this time.
Interelectronics's statement that rule section 22.655 is no longer
necessary given recent developments in the paging industry is better
addressed in a rulemaking proceeding with the benefit of notice and
comment from interested parties in the paging industry.

8\. Accordingly, IT IS ORDERED that, pursuant to sections 4 (i) and 405
of the Communications Act of 1934, as amended, 47 U.S.C. §§ 154 (i ),
405, and sections 0.331, 1.106, and 1.925 of the Commission's rules, 47
C.F.R. §§ 0.331, 1.106, and 1.925, the Petition for Reconsideration
filed by Interelectronics

Corporation on December 8, 1999 is granted in part, as set forth herein,
and Interelectronics Corporation is granted a partial waiver of rule
section 22. 655, as set forth herein.

FEDERAL COMMUNICATIONS COMMISSION

William W. Kunze

> Chief, Commercial Wireless Division
>
> Wireless Telecommunications Bureau

[^1]: *See* Letter from James H. Bennett, Deputy Chief, Licensing and
    Technical Analysis Branch, Commercial Wireless Division, Wireless
    Telecommunications Bureau, to George Petrutsas, Esq., Fletcher,
    Heald & Hildreth, dated November 26, 1999.

[^2]: 47 C.F.R. § 22.655.

[^3]: In the Matter of Flexible Allocation of Frequencies in the
    Domestic Public Land Mobile Services for Paging and other Services,
    *Second Report and Order*, 4 FCC Rcd. 6415 (1989) (*Second R & O)*.

[^4]: In the Matter of Flexible Allocation of Frequencies in the
    Domestic Public Land Mobile Services for Paging and other Services,
    *Order on Reconsideration of the Second Report and Order*, 7 FCC
    Rcd. 1577 (1992) (*Reconsideration Order*).

[^5]: *See* Letter from John Cimko, Chief, Mobile Services Division,
    Common Carrier Bureau, to George Petrutsas, Esq., Fletcher, Heald &
    Hildreth, dated March 4, 1993.

[^6]: *See* Letter from John Cimko, Chief, Mobile Services Division,
    Common Carrier Bureau, to George Petrutsas, Esq., Fletcher, Heald &
    Hildreth, dated August 3, 1993.

[^7]: *See* Letter from James H. Bennett, Deputy Chief, Licensing and
    Technical Analysis Branch, Commercial Wireless Division, Wireless
    Telecommunications Bureau, to George Petrutsas, Esq., Fletcher,
    Heald & Hildreth, dated August 27, 1997.

[^8]: *Id.*

[^9]: *See* Interelectronics Corporation Request for Waiver dated March
    18, 1999. We note that Commission records reflect that 6 out of the
    24 channels on the 470-512 MHz frequency in New York City are not
    currently being used.

[^10]: *Id.* Interelectronics's quarterly traffic reports reflect that
    it has maintained above a .25 blocking probability.

[^11]: *See* Letter from James H. Bennett, Deputy Chief, Licensing and
    Technical Analysis Branch, Commercial Wireless Division, Wireless
    Telecommunications Bureau, to George Petrutsas, Esq., Fletcher,
    Heald & Hildreth, dated November 26, 1999.

[^12]: *Id.*

[^13]: *See* Interelectronics Corporation Petition for Reconsideration
    filed December 8, 1999.

[^14]: 47 C.F.R. § 22.655 (a) (1).

[^15]: 47 C.F.R. § 22.655 (a) (2).

[^16]: 47 C.F.R. § 22.655 (a) (3).

[^17]: 47 C.F.R. § 22.655 (a).

[^18]: 47 C.F.R. § 22.655 (a) (4).

[^19]: Interelectronics Corporation Petition for Reconsideration at 3-4.