PUBLIC NOTICE![](media/image1.png){width="0.7388888888888889in"
height="0.7458333333333333in"}

FEDERAL COMMUNICATIONS COMMISSION News Media Information: (202) 418-0500

445 12th STREET, S.W. Fax-On-Demand: (202) 418-2830

# WASHINGTON, D.C. 20554 Internet: [http://www.fcc.gov](http://www.fcc.gov/)

# ftp.fcc.gov

DA 99-3006

Released: December 28, 1999

WIRELESS TELECOMMUNICATIONS BUREAU ANNOUNCES PRELIMINARY IMPLEMENTATION
PROCEDURES FOR 218-219 MHZ SERVICE (FORMERLY KNOWN AS INTERACTIVE VIDEO
AND DATA SERVICE (IVDS))

### Background

On September 10, 1999, the Federal Communications Commission
("Commission") issued the *218-219 MHz* *Order,* which modified the
licensing rule for the 218-219 MHz Service (formerly known as IVDS) to
maximize the efficient and effective use of the band.[^1] The *218-219
MHz Order*, among other things, modified service and technical rules for
the band and extended the license term from five to ten years.[^2] The
Commission also adopted a restructuring plan for existing licensees that
(i) were current in installment payments as of March 16, 1998; (ii) were
less than ninety days delinquent on the last payment due before March
16, 1998; or (iii) had properly filed grace period requests under the
former installment payment rules ("Eligible Licensees").[^3] The
Commission permitted Eligible Licensees to choose between three options:
(i) Reamortization and Resumption of Payments, (ii) Amnesty, or (iii)
Prepayment.[^4] Eligible Licensees that fail to submit an election with
respect to any license by Election Day (February 29, 2000) will be
assumed to have elected Amnesty.[^5]

The licenses that were held by entities that made second down payments
and (i) made some installment payments, but were not current in their
installment payments as of March 16, 1998, and did not have grace period
requests on file in conformance with the former rules; and/or (ii)
entities that never made any installment payments ("Ineligible
Entities"), cancelled automatically.[^6] Ineligible Entities will be
granted debt forgiveness for any outstanding balances owed and
previously paid installment payments will be refunded subject to
approval from the Department of Justice ("DOJ").[^7]

### Notification of Eligibility

The Commission will provide written notification to all Eligible
Licensees and Ineligible Entities of their eligibility to make
elections. We will include a history of installment payments for each
license, as well as instructions for entities that believe their
eligibility has been incorrectly classified due to administrative error.

##### Elections and Implementation Procedures

"Election Day," *i.e.* the date by which Eligible Licensees must notify
the Commission of the restructuring option under which they will
participate, is February 29, 2000. We will resume collection of
installment payments beginning May 31, 2000.[^8] **Prior to Election
Day, the Commission will issue a Public Notice [providing detailed
implementation procedures and specific instructions on how to file
elections]{.underline}.**

### 

### 

### License Renewals

In the *218-219 MHz Order*, the Commission extended the license term
from five to ten years.[^9] When the new rules take effect on January 3,
2000, the Commission will modify its licensing records to reflect the
ten-year terms. Consequently, no license renewals are necessary at this
time for licenses that were issued in 1995 with a year 2000 expiration
date.

### Construction Benchmarks

In the *218-219 MHz Order*, the Commission adopted, in conjunction with
ten-year licensing terms, a ten-year substantial service construction
requirement for renewal of both lottery and auction license
winners.[^10] The substantial service requirement replaces three- and
five-year construction benchmarks under our prior rules.

**[Order on Reconsideration Issued]{.underline}**

On November 30, 1999, the Commission issued the *218-219 MHz* *Order on
Reconsideration* altering the terms of the Amnesty election option. The
*218-219 MHz Order* allowed an Eligible Licensee that chose Amnesty to
either (1) receive no credit for its down payment but remain eligible to
bid on the surrendered licenses when subsequently auctioned, without
restriction on after-market acquisitions, or (2) obtain a credit for
seventy (70%) percent of its down payment and forego for a period of two
years, beginning with the subsequent auction, eligibility to reacquire
the surrendered licenses through either auction or any secondary market
transaction.[^11] The *218-219 MHz* *Order on Reconsideration*
eliminated the second Amnesty option.

**[DOJ Approval]{.underline}**

### 

### The debt forgiveness portion of the restructuring plan contained in the *218-219 MHz Order* is subject to DOJ approval, which the Commission is currently seeking. Notification of DOJ approval will be provided in a future Public Notice.

### 

### To Obtain Information

#### Web site

Documents related to this rule making proceeding and its implementation
may be found on the Federal Communications Commission web site located
at [http://www.fcc.gov/wtb/auctions/218 rest/218
rest.html.](http://www.fcc.gov/wtb/auctions/218)

#### FCC Reference Center

Documents related to this rule making proceeding and its implementation
may also be examined and copied during normal business hours in the FCC
Reference Center, 445 12^th^ Street, SW, Room CY-A257, Washington, DC
20554, telephone (202) 418-0270.

#### 

#### ITS

In addition, documents may be purchased from the Commission's copy
contractor, ITS, Inc., 1231 20^th^ Street, NW, Washington, DC 20036,
telephone (202) 857-3800.

### Contacts

Questions regarding this *Public Notice* should be directed to Ben
Freeman or Nicole Oden of the Auctions and Industry Analysis Division at
(202) 418-0660 or Jamison Prime of the Public Safety and Private
Wireless Division at (202) 418-0680.

[^1]: *See* In the Matter of Amendment of Part 95 of the Commission's
    Rules to Provide Regulatory Flexibility in the 218-219 MHz Service,
    *Report and Order and Memorandum Opinion and Order*, FCC 99-239, WT
    Docket No. 98-169, RM-8951, (rel. Sept. 10, 1999) at 3, ¶2.
    (*218-219 MHz Order*).

[^2]: *See* *Id*. at ¶31.

[^3]: *See* *Id*. at ¶37.

[^4]: *See Generally Id*. at 26-33.

[^5]: Election Day refers to the date on which eligible licensees must
    elect one of the three restructuring options adopted in the *218-219
    MHz Order*, and falls on the last day of the third month following
    publication of the *218-219 MHz Order* in the Federal Register*. See
    Id*. at ¶54 (f.n.178). *See generally* 64 FR 59656 (November 3,
    1999).

[^6]: 47 C.F.R. § 95.816(d)(3) (1994) (incorporating by reference 47
    C.F.R. § 1.2110 (1994)). *See* *also* *Mountain Solutions v FCC*,
    No. 98-1503 (D.C. Cir. Dec. 3, 1999) upholding the Commission's
    decision, in a PCS licensing matter, to deny a waiver of its rule
    requiring a winning bidder to timely submit both its first and
    second down payment in order to retain its license.

[^7]: *Id*. at ¶38. This debt treatment is subject to the following
    provisions: 31 U.S.C. §3711 and 31 U.S.C. §3720B. Only the United
    States Department of Justice may compromise a claim in excess of
    \$100,000. *See* 4 C.F.R. §103.1. *See also* 31 U.S.C. §3711. Under
    the Debt Collection Improvement Act no person may obtain any federal
    financial assistance if the person had an outstanding debt with any
    federal agency which is in a delinquent status, as determined under
    standards prescribed by the Secretary of Treasury. Pub. L. No.
    104-134, §3100(j)(1), 110 Stat. 1321 (1996), codified at 31 U.S.C.
    §3720B.

[^8]: *Id*. at ¶44 (f.n.155). *See* *218-219 MHz Order*, 64 FR 59656
    (November 3, 1999).

[^9]: *See* *218-219 MHz Order* at ¶31.

[^10]: *Id*. at ¶75.

[^11]: *See Id* at ¶¶22, 40-53.