Before the

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | * | WT Docket No. 99-328         |
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| Samsung Telecommunications       | ) |                              |
| America, Inc. and                | * |                              |
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| Samsung Electronics Co., Ltd.    |   |                              |
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| Request for Temporary Relief     | * |                              |
| Regarding 911 Call Processing    | ) |                              |
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**ORDER**

**Adopted:** June 29, 2000 **Released:** June 30, 2000

By the Chief, Wireless Telecommunications Bureau:

# introduction and background

1.  In its *Second Report and Order* in the Wireless E911 Rulemaking, CC
    docket No. 94-102,[^1] the Commission adopted Section 22.921 of its
    rules, 47 C.F.R. § 22.921. To help improve 911 call completion, this
    rule requires that analog wireless handsets and multimode handsets
    manufactured after February 13, 2000, incorporate a special
    procedure for processing 911 calls that allows a caller when
    operating in analog mode, to complete 911 calls to either analog
    carrier in an area, regardless of the programming of the handset for
    non-911 calls.[^2] In the *Second Report and Order*, the Commission
    approved three specific 911 call processing methods.[^3]

2.  On April 13, 2000, Samsung Telecommunications America, Inc. and
    Samsung Electronics Co., Ltd. (Samsung) filed with the Wireless
    Telecommunications Bureau (Bureau) a Request for Emergency Temporary
    Relief (Request) seeking a waiver of the analog 911 call completion
    methodology requirements of Section 22.921. Samsung specifically
    seeks authority to continue, until July 15, 2000, to manufacture and
    distribute in the United States certain digital handsets that do not
    incorporate one of the 911 call completion methodologies previously
    approved by the Commission.[^4] Samsung indicates that due to an
    error in interpreting the Commission's regulations, the company
    mistakenly believed that the February 13, 2000 deadline applied only
    to dual mode handsets *submitted for authorization* after that date
    rather than to all dual mode handsets *manufactured* after that
    date.[^5] Samsung further states that it became aware that its
    interpretation of the E911 requirements might have been mistaken in
    March, 2000,[^6] and that on March 31, 2000, Samsung's engineers
    confirmed that a software modification to handsets manufactured
    after February 13, 2000 would be necessary.[^7]

3.  Samsung indicates that it plans to correct this situation by
    incorporating the Automatic A/B-IR call completion methodology
    previously approved by the Commission into the affected
    handsets.[^8] Samsung seeks a waiver so that it may continue to
    manufacture handsets during the time necessary to modify and test
    handsets to comply with the rule, which in no event will be later
    than July 15, 2000, in order to meet contractual obligations to
    United States wireless service providers. Samsung further asserts
    that the handsets manufactured during the period covered by the
    waiver will be sold exclusively to carriers with digital preferred
    services, so that the analog back-up capability would be rarely
    used.[^9]

4.  The Bureau sought comment on the Samsung Request, and the Wireless
    Consumer's Alliance, Inc. (WCA) and the National Emergency Numbering
    Association (NENA) filed comments opposing the Request.[^10] WCA
    contends there are several reasons why a waiver should not be
    granted to Samsung. First, WCA asserts, Samsung knew, or should have
    known, that its handsets do not comply with Section 22.921 and that
    any interpretational questions should have been resolved by the
    Commission in the E911 *Third Memorandum Opinion and Order*,
    released January 13, 2000.[^11] Further, WCA expresses concern that
    the number of non-compliant handsets that Samsung has sold, and will
    continue to sell if the requested waiver is granted, may be
    significant, and that Samsung is underestimating the time necessary
    to fully incorporate the Automatic A/B-IR call completion
    methodology in its handsets.[^12] WCA also suggests that, at a
    minimum, Samsung be required to make available the trade names,
    makes, models, and serial numbers of the affected handsets so that
    consumers may identify and return non-compliant phones, or
    alternatively that Samsung be required to recall all non-compliant
    handsets.[^13]

5.  Both WCA and NENA contend that the Commission's call completion
    requirements are intended to apply to dual-band handsets operating
    in analog mode.[^14] NENA also argues that to grant a waiver based
    on secondary use of the analog mode in digital phones would simply
    nullify the application of Section 22.921 to dual-mode phones.[^15]

6.  In Reply Comments, Samsung represents that it has developed the
    software modifications for its affected handsets necessary for
    compliance and that it has completed testing in Korea and at its
    U.S. headquarters.[^16] Samsung also represents that it has begun
    field testing the final version of the software,[^17] and is on
    schedule to manufacture handsets in accordance with Section 22.921
    by July 15, 2000.

7.  Samsung has recently provided information updating the status of its
    progress with regard to the affected handsets, indicating that it
    plans to discontinue two of the five affected handset models, the
    SCH-411 and the SCH-2500.[^18] Those models will not accept the new
    software used in other affected handset models that are continuing
    in production, and will be discontinued as of July 15, 2000.[^19]
    With respect to two of the three remaining models, Samsung has made
    modifications based on the technical comments of its carrier
    customers and is now awaiting final approval from these
    carriers.[^20] Samsung expects carrier testing of the final model to
    begin sometime during the week of June 19, 2000. In addition,
    Samsung clarifies that although production of the affected handsets
    will cease as of July 15, 2000, due to the lag time between
    production in Korea and distribution in the United States,
    distribution of affected handsets will likely continue for a short
    period after July 15, 2000.[^21]

# discussion

8.  As an initial matter, we are in accord with WCA's position that
    Samsung should have known that the requirements of Section 22.921
    were applicable to all handsets manufactured after February 13,
    2000, especially in view of Ericsson's Petition for Reconsideration,
    which specifically asked the Commission to change its requirements
    so that they would apply only to new model handsets and not to all
    newly manufactured handsets, and the Commission's subsequent
    rejection of that argument in the E911 *Third Memorandum Opinion and
    Order*.[^22] We observe, however, that issues concerning Samsung's
    compliance with Section 22.921 in the manufacture of the affected
    handsets following the February 13, 2000 deadline are being
    addressed collaterally through a Consent Decree today adopted by the
    Commission's Enforcement Bureau (Consent Decree).[^23]

9.  We find that grant of a limited waiver allowing continued production
    of the affected handsets for a restricted period until July 15, 2000
    is justified, in this instance, to afford consumers greater access
    to the benefits of digital technology, which in many instances may
    include an increased likelihood of clear and meaningful
    communication with a Public Safety Answering Point in the event a
    calling party has to make an emergency call.[^24] As we have
    previously expressed, we are concerned that the disruption of
    multi-mode handset production and competition while demand for
    handsets continues to grow strongly could adversely affect
    consumers.[^25] The effects could consist of higher prices,
    confusion, and reduced availability of dual band, multimode
    handsets.[^26] Thus, to enable Samsung to incorporate the required
    modifications into its multimode handsets in full compliance with 47
    C.F.R. § 22.921, we find it to be in the public interest to grant
    Samsung's request for a limited extension of time.[^27]

10. Moreover, we conclude that Samsung proposes to take certain remedial
    actions that will serve to limit the potential for a detrimental
    impact on public safety from limited manufacture of those handsets.
    For example, in its Request, Samsung has already made public the
    model numbers for the affected handsets, as WCA recommends, which
    will help service providers and consumers identify potentially
    non-compliant handsets.[^28] Samsung also asserts that it will
    upgrade every multimode handset capable of receiving the new
    software that is sent back for repairs, regardless of the date of
    manufacture of the phone.[^29] Samsung has recently clarified that
    two models, SCH-411 and SCH-2500, of the affected handsets will not
    accept the new software used in the other Samsung models that it
    will continue to produce. Samsung, however, indicates that it has
    only been producing very limited quantities of these models since
    late 1999, that its carrier customers have not generated new
    purchase orders, and that it will discontinue production of these
    handsets entirely as of July 15, 2000.[^30]

11. In addition, Samsung has indicated that it will begin production of
    modified units of the affected handsets on a carrier-by-carrier and
    model-by-model basis prior to July 15, 2000, as carrier- specific
    testing is completed.[^31] In other words, as soon as testing of an
    upgraded handset has been completed with a particular service
    provider, Samsung will provide only compliant handsets to that
    service provider, regardless of whether testing has been completed
    with other service providers. This schedule for phasing-in the
    necessary upgrades will further limit the circulation of handsets
    that do not comply with Section 22.921 requirements.

12. With regard to future production of handsets, Samsung indicates that
    it plans to establish a compliance resource at its U.S. headquarters
    in Richardson, Texas that will be responsible for promoting Samsung
    compliance with Commission regulations.[^32] We are hopeful that
    establishment of such a resource will, as Samsung suggests,
    foreclose any possibility of a similar misinterpretation of the
    Commission's rules in the future.

13. In addition, we note that in the collateral Consent Decree, Samsung
    has made certain corollary commitments that will also serve to limit
    the detrimental impact of the requested waiver. For example, Samsung
    commits that all models of the affected handsets manufactured after
    July 15, 2000 shall incorporate software using a Commission-approved
    call completion methodology.[^33] Samsung further commits to upgrade
    any Samsung multimode handset, regardless of the date of the
    manufacture, that is returned to Samsung for repairs unrelated to
    E911 call completion that will require software upgrades, provided
    such upgrade is feasible and the new software has been approved by
    the end-user's carrier.[^34] Moreover, Samsung pledges to contact
    each of its service provider customers within 30 days of the
    effective date of the Consent Decree to inform them of Samsung's
    plan to upgrade handsets requiring software repair with the latest
    software version approved by that service provider.[^35]

14. We are not persuaded by WCA's contention that we should not grant
    the waiver because Samsung will need substantial additional time in
    order to implement the necessary software change. In view of
    Samsung's representations regarding its progress in implementing the
    necessary software upgrades, we find that the company's own testing,
    the testing by its carrier customers, and the carriers' approval of
    the software upgrades appear to be on schedule to meet the requested
    July 15, 2000 deadline.[^36]

15. Thus, to enable Samsung to incorporate modifications into its
    handsets that will render them fully compliant with 47 C.F.R. §
    22.921, we believe that it is in the public interest to grant
    Samsung's request for a limited extension of time to continue
    manufacture of the affected handsets until July 15, 2000,
    conditioned upon Samsung's compliance with the remedial measures
    outlined in this order.

16. Accordingly, IT IS ORDERED that Samsung's Request for Emergency
    Relief IS GRANTED to the extent indicated in this Order.

17. IT IS FURTHER ORDERED that Samsung's request for waiver of Section
    22.921 of the Commission's Rules, until July 15, 2000 IS GRANTED to
    the extent indicated herein.

> FEDERAL COMMUNICATIONS COMMISSION
>
> Thomas J. Sugrue
>
> Chief, Wireless Telecommunications Bureau

[^1]: Revision of the Commission's Rules to Ensure Compatibility With
    Enhanced 911 Emergency Calling Systems, CC Docket No. 94-102, Second
    Report and Order, 14 FCC Rcd 10954 (1999) (*Second Report and
    Order*).

[^2]: 47 C.F.R § 22.921. *See also* Revision of the Commission's Rules
    to Ensure Compatibility With Enhanced 911 Emergency Calling Systems,
    CC Docket No. 94-102, Third Memorandum Opinion and Order, 15 FCC Rcd
    1144, 1146-47 (2000) (*Third Memorandum Opinion and Order*) at
    paras. 5-8.

[^3]: *Second Report and Order*, 14 FCC Rcd at 10967-87. The approved
    methods include Automatic A/B Roaming with Intelligent Retry
    (Automatic A/B-IR), Adequate/Strongest Signal and Selective Retry.
    The Bureau subsequently approved two alternative 911 call completion
    methods. *See* 911 Call Processing Modes, WT Docket No. 99-328,
    Order, DA 00-253, Feb. 11, 2000, 2000 WL 145986 (*Ericsson Order*);
    911 Call Processing Modes, WT Docket No. 99-328, Order, 15 FCC Rcd
    1911 (2000) (*Nokia Order*).

[^4]: Samsung Request at 22. Samsung indicates that the model numbers
    for the affected handsets are the SCH-411, SCH-2500, SCH-3500,
    SCH-8500, and SCH-850. Samsung Request at 2 n.2.

[^5]: Samsung Request at 4-5.

[^6]: Samsung Request at 5.

[^7]: *Id*.

[^8]: Samsung Request at 9, 18-19. With Automatic A/B-IR capability,
    handsets seek to complete a 911 call with the non-preferred cellular
    carrier if the preferred cellular carrier has not successfully
    delivered the call to the landline carrier within 17 seconds after
    the call is placed. *Second Report and Order*, 14 FCC Rcd at
    10971-72.

[^9]: Samsung Request at 10.

[^10]: Public Notice, "Comment Sought on Request for Emergency Temporary
    Relief from Wireless 911 Call Processing Rules by Samsung," DA
    00-882, released April 18, 2000.

[^11]: WCA Opposition at 2, 4 (stating that in the *Third Memorandum
    Opinion and Order*, the Commission rejected Ericsson's argument on
    reconsideration that Section 22.921 should only be applicable to new
    handsets submitted for approval after February 13, 2000).

[^12]: WCA Opposition at 5, 8-9.

[^13]: WCA Opposition at 5, 9-10.

[^14]: WCA Opposition at 1; NENA Opposition at 1-2.

[^15]: NENA Opposition at 2.

[^16]: Samsung Reply Comments at 3-4.

[^17]: *Id*. at 3-4. Samsung also asserts that it is taking remedial
    actions. Subsequent to the filing of the Samsung Reply, WCA filed an
    ex parte letter, suggesting that the Commission immediately suspend
    type acceptance of Samsung non-complying handsets pending resolution
    of the matter. *See* Letter from C. Hilliard, WCA, to Magalie Roman
    Salas, Secretary, FCC, May 19, 2000.

[^18]: *See* Letter from John S. Logan, Dow, Lohnes & Albertson, Counsel
    for Samsung, to Magalie Roman Salas, Secretary, FCC, June 21, 2000
    (June 21, 2000 Samsung Letter) (para. 2); *see also* Letter from
    John S. Logan, Dow, Lohnes & Albertson, Counsel for Samsung, to
    Magalie Roman Salas, Secretary, FCC, June 23, 2000 (June 23, 2000
    Samsung Letter) (identifying the models to be discontinued).

[^19]: *See* June 21, 2000 Samsung Letter (para. 2); June 23, 2000
    Samsung Letter, at 1-2.

[^20]: *See* June 21, 2000 Samsung Letter (para. 1).

[^21]: *See* June 21, 2000 Samsung Letter, at p. 2 n.1.

[^22]: *See Third Memorandum Opinion and Order*, 15 FCC Rcd at 1147
    (paras. 7-8).

[^23]: In the Matter of Samsung Telecommunications America, Inc. and
    Samsung Electronics Co., Ltd., Order, DA 00-1468, (Enf. Bureau),
    released June 30, 2000.

[^24]: *See generally* *Nokia Order*, 15 FCC Rcd at 1914 (para. 10).

[^25]: *Ericsson Order* at para. 7; 911 Call Processing Modes, WT Docket
    No. 99-328, Order, 15 FCC Rcd 3075, 3076 (2000) (*Motorola Order*)
    at para. 4.

[^26]: *Id*.

[^27]: We are not persuaded by Samsung's arguments that because the
    affected handsets will be marketed only to carriers with
    digital-preferred service offerings, consumer using these handsets
    will be virtually unaffected by a lack of compliance with Section
    22.921 because the analog back-up capability would so rarely be
    used. The Commission purposely extended the application of the 911
    call completion rules to multimode handsets operating in analog
    mode, in view of the current realities of the wireless marketplace,
    in which subscribers to digital services may often find themselves
    in areas where only analog service is available.

[^28]: Samsung Request at 2 n.2; Samsung Reply at 3 n.2.

[^29]: Samsung Request at 20.

[^30]: June 21, 2000 Samsung Letter (para. 2); June 23, 2000 Samsung
    Letter. Furthermore, Samsung has informed the Commission that if
    Samsung were to receive new orders for either the SCH-411 or the
    SCH-2500 model, Samsung would develop and incorporate new software
    that would render the model compliant with the Commission's 911 call
    completion requirements. Once a carrier chose to distribute an
    upgraded model of the SCH-411 or the SCH-2500, any older units of
    those models sent to Samsung from that carrier's customers for
    software-related repairs would then be upgraded under the same terms
    as the other models of the affected handsets. *See also* Consent
    Decree at para. 12.

[^31]: *See* Samsung Request at 20. *See also* Samsung Reply at 4
    (indicating that as of May 5, 2000, software development and
    laboratory testing had been completed, and Samsung had begun it own
    laboratory testing).

[^32]: Samsung Request at 20-21.

[^33]: Consent Decree at para. 11.

[^34]: Consent Decree at para. 12. Samsung further commits that it will
    not manufacture, after July 15, 2000, models, SCH-411 and SCH-2500,
    unless and until it has incorporated either Commission-approved
    software or an alternate method authorized or approved by the
    Commission. If such approved software or method is developed,
    Samsung will also upgrade with such software, after carrier testing
    and approval, the old models of those units sent to Samsung from its
    customer carriers' subscribers for software-related repairs. *See*
    June 23, 2000 Samsung Letter at 2.

[^35]: Consent Decree at para. 12.

[^36]: Samsung Reply Comments at 3-4; June 21, 2000 Samsung Letter
    (para. 1); June 23, 2000 Samsung Letter.