[Federal Register Volume 71, Number 161 (Monday, August 21, 2006)]
[Proposed Rules]
[Pages 48506-48527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-7051]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 2, 6, 7, 9, 13, 20, 22, 24, 27, 68, 73, 74, 78, 80, 
87, 90, 95, 97, and 101

[WT Docket No. 06-150, CC Docket No. 94-102, WT Docket No. 01-309; FCC 
06-114]


Service Rules for the 698-746, 747-762 and 777-792 MHz Bands; 
Revision of the Commission's Rules To Ensure Compatibility With 
Enhanced 911 Emergency Calling Systems; Hearing Aid-Compatible 
Telephones

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) undertakes an examination of possible changes to service 
rules that primarily govern wireless licenses in the 698-746, 747-762, 
and 777-792 MHz bands (700 MHz Band) currently occupied by television 
(TV) broadcasters and being made available for new services as a result 
of the digital television (DTV) transition. Because of statutory 
changes, industry developments, and the fact more than four years have 
passed since the Commission adopted its initial band plans and service 
rules governing these licenses, the Commission is revisiting various of 
its earlier rule decisions regarding these 700 MHz Band licenses. The 
Commission also is requesting comment on: the tentative conclusion that 
services provided by licensees in the 700 MHz Band, and in other bands 
subject to Miscellaneous Wireless Communications Services rules 
including the Advanced Wireless Services in the 1710-1755 MHz and 2110-
2155 MHz bands (AWS-1), should be subject to 911 and enhanced 911 (911/
E911) and hearing aid-compatibility requirements to the same extent 
that such services would be covered if provided in other bands; and how 
to modify Commission rules to ensure that they include all similar 
wireless services.

DATES: Comments due on or before September 20, 2006. Reply comments are 
due on or before October 20, 2006.

ADDRESSES: You may submit comments, identified by WT Docket No. 06-150, 
CC Docket No. 94-102, WT Docket No. 01-309, by any of the following 
methods:
    <bullet> Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    <bullet> Federal Communications Commission's Web Site: http://www.fcc.gov/cgb/ecfs/. Follow the instructions for submitting comments.
    <bullet> E-mail: <a href="/cdn-cgi/l/email-protection#67020401142701040449000811"><span class="__cf_email__" data-cfemail="7e1b1d180d3e181d1d50191108">[email protected]</span></a>, and include the following words in 
the body of the message, ``get form.'' A sample form and directions 
will be sent in response.
    <bullet> Mail: Federal Communications Commission, 445 12th Street, 
SW., Washington, DC 20554.
    <bullet> Hand Delivery/Courier: 236 Massachusetts Avenue, NE., 
Suite 110, Washington, DC 20002.
    <bullet> Accessible Formats: Contact the FCC to request reasonable 
accommodations (accessible format documents, sign language 
interpreters, CART, etc.) for filing comments either by e-mail: 
<a href="/cdn-cgi/l/email-protection#ebada8a8dedbdfab8d8888c58c849d"><span class="__cf_email__" data-cfemail="3e787d7d0b0e0a7e585d5d10595148">[email protected]</span></a> or phone: 202-418-0530 or TTY: 202-418-0432.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to http://www.fcc.gov/cgb/ecfs including any 
personal information provided.

[[Page 48507]]


FOR FURTHER INFORMATION CONTACT: Michael Rowan, Special Counsel, 
Spectrum & Competition Policy Division, Wireless Telecommunications 
Bureau, Federal Communications Commission, 445 12th Street, SW., 
Portals I, Room 6315, Washington, DC, 20554; and Bill Stafford, Special 
Counsel, Spectrum & Competition Policy Division, Wireless 
Telecommunications Bureau, Federal Communications Commission, 445 12th 
Street, SW., Portals I, Room 6221, Washington, DC, 20554.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking, Fourth Further Notice of Proposed Rulemaking, 
and Second Further Notice of Proposed Rulemaking (NPRM) in WT Docket 
No. 06-150, CC Docket No. 94-102, and WT Docket No. 01-309 released 
August 10, 2006. The complete text of the NPRM is available for public 
inspection and copying from 8 a.m. to 4:30 p.m. Monday through Thursday 
or from 8 a.m. to 11:30 a.m. on Friday at the FCC Reference Information 
Center, Portals II, 445 12th Street, SW., Room CY-A257, Washington, DC 
20554. The NPRM may also be purchased from the Commission's duplicating 
contractor, Best Copy and Printing, Inc. (BCPI), Portals II, 445 12th 
Street, SW., Room CY-B402, Washington, DC 20554, telephone 202-488-
5300, facsimile 202-488-5563, or you may contact BCPI at its Web site: 
http://www.BCPIWEB.com. When ordering documents from BCPI please 
provide the appropriate FCC document number, FCC 06-114. The NPRM is 
also available on the Internet at the Commission's Web site through its 
Electronic Document Management System (EDOCS): http://hraunfoss.fcc.gov/edocs_public/SilverStream/Pages/edocs.html.
    Initial Paperwork Reduction Act of 1995 Analysis: This document 
contains proposed new or modified information collection requirements. 
The Commission, as part of its continuing effort to reduce paperwork 
burdens, invites the general public and the Office of Management and 
Budget (OMB) to comment on the information collection requirements 
contained in this document, as required by the Paperwork Reduction Act 
of 1995, Public Law 104-13. Public and agency comments are due on or 
before September 20, 2006. Comments should address: (a) Whether the 
proposed collection of information is necessary for the proper 
performance of the functions of the Commission, including whether the 
information shall have practical utility; (b) the accuracy of the 
Commission's burden estimates; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burden of the collection of information on the 
respondents, including the use of automated collection techniques or 
other forms of information technology. In addition, pursuant to the 
Small Business Paperwork Relief Act of 2002, Public Law 107-198 (see 44 
U.S.C. 3506(c)(4)), the Commission seeks specific comment on how it 
might ``further reduce the information collection burden for small 
business concerns with fewer than 25 employees.'' The Commission notes, 
however, that section 213 of the Consolidated Appropriations Act 2000, 
Public Law 106-113, provides that rules governing frequencies in the 
746-806 MHz Band become effective immediately upon publication in the 
Federal Register without regard to certain sections of the Paperwork 
Reduction Act. The Commission is therefore not inviting comment on any 
information collections that concern frequencies in the 746-806 MHz 
Band.

I. Introduction

    1. In this NPRM, the Commission seeks comment on possible changes 
to the part 27 service rules governing wireless licenses in the 700 MHz 
Band currently occupied by TV broadcasters and being made available for 
new services as a result of the DTV transition. More than four years 
have passed since the Commission adopted its initial band plans and 
service rules governing these licenses. During that time, Congress 
enacted significant statutory changes to the DTV transition in the 
Digital Television and Public Safety Act of 2005 (DTV Act). The DTV Act 
could affect the Commission's existing regulatory approach to the 698-
806 MHz Band, which had envisioned ``early'' recovery of TV Channels 
60-69 (Upper 700 MHz Band), but had anticipated recovery of TV Channels 
52-59 (Lower 700 MHz Band) after the DTV transition was complete. In 
addition, during the past four years, U.S. consumers have been 
introduced to a variety of innovative wireless services and 
technologies at the same time that the number of subscribers for mobile 
telephone services has increased by approximately 50 percent. The 
Commission therefore is revisiting various of its earlier decisions 
regarding these 700 MHz Band licenses.
    2. This NPRM addresses many of the rules applicable to certain 
spectrum in the Upper 700 MHz Band (Television Channels 60-69 in the 
746-806 MHz band) and the Lower 700 MHz Band (TV Channels 52-59 in the 
698-746 MHz band). This includes licenses yet to be auctioned in 30 
megahertz of spectrum in the Upper 700 MHz Band and in 30 megahertz of 
spectrum in the Lower 700 MHz Band, as well as licenses that already 
have been auctioned in 18 megahertz in the Lower 700 MHz Band. Rules 
applicable to spectrum currently occupied by TV Channels 63-64 (764-776 
MHz band) and 68-69 (794-806 MHz band) are not considered in this NPRM 
because that spectrum has been allocated to public safety (and thus is 
not included within the term of the 700 MHz Band as defined in this 
NPRM). Also, the rules applicable to the Guard Band spectrum at 746-
747/776-777 MHz and 762-764/792-794 MHz (which also are not included 
within the definition of the 700 MHz Band) are not considered in this 
NPRM except insofar as it is a part 27 service to which 911 and 
enhanced 911 and hearing aid compatibility rules may potentially be 
applied. Finally, in this NPRM the Commission does not seek comment on 
the allocation or service rules for broadcasting or other legacy 
operations in these bands.

II. Discussion

    3. Given that seven years have passed since the Commission first 
initiated a proceeding on the 700 MHz Band, the Commission seeks to 
evaluate whether changes to the existing service rules pertaining to 
700 MHz Band licenses--including 48 megahertz of Lower 700 MHz Band 
spectrum (Blocks A-E), and the 30 megahertz of Upper 700 MHz Band 
spectrum (Blocks C and D)--may ultimately permit more effective use of 
this spectrum to better meet the needs of today's consumers.

A. Size of Service Areas

1. Need for Additional Access to Spectrum Licensed Over Small Service 
Areas
    4. The Commission seeks comment on whether, in order to further 
enhance access to spectrum in rural areas, the service areas sizes of 
the licenses to be auctioned should be smaller than the EAGs provided 
for under existing rules. The Commission seeks comment on the extent to 
which the assignment of spectrum over smaller service areas could lead 
to increased and better service in these areas. In addition, parties 
should comment on possible transaction costs associated with the 
assignment of additional spectrum over small service areas on those 
service providers with business plans to provide service to rural areas 
as part of regional or national footprints. The Commission seeks 
comment on the

[[Page 48508]]

factors that the Commission should use in balancing the needs of small 
and rural carriers as well as large and national carriers as they seek 
to provide service to their rural customers.
    5. When addressing whether to license additional 700 MHz Band 
spectrum over small service areas, commenting parties should address 
the relationship between their ability to obtain licenses at auction 
and their ultimate deployment of service in rural areas. For example, 
the Commission seeks comment on whether certain areas may continue to 
have high costs of providing service that are unrelated to spectrum 
acquisition costs. The Commission seeks comment on whether certain 
areas may continue to have high costs of providing service that are 
unrelated to spectrum acquisition costs and whether or not there is a 
point at which the advantages of assigning additional small-area 
licenses diminish relative to the disadvantages.
    6. In assessing any particular need and/or amount of spectrum, 
commenters should consider the 700 MHz Band's potential suitability for 
more rapid deployment of mobile and other advanced services in high-
cost areas given its propagation and other technical characteristics. 
The Commission seeks comment on whether the benefits due to the 
propagation characteristics of this spectrum make it appropriate to 
assign an additional amount of 700 MHz Band spectrum over small areas, 
or whether other considerations support licensing the bands over EAGs 
or other large areas.
    7. As compared to other bands, the Commission seeks comment on the 
potential of 700 MHz Band spectrum to support broadband and other new 
applications. Commenters should explain how much additional 700 MHz 
Band spectrum licensed over areas other than EAGs may be necessary to 
support spectrum-based broadband applications in rural areas.
    8. The Commission seeks comment on the need for greater access to 
700 MHz Band spectrum on a smaller-area basis. In 2005, the Commission 
increased the amount of AWS spectrum to be assigned over CMAs due to 
market developments and the support of several commenters, including 
parties representing small and larger carriers. Commenters should also 
consider the Commission's decision to assign 12 megahertz of 700 MHz 
Band spectrum over CMAs. To the extent the Commission decides not to 
assign additional 700 MHz spectrum over small areas, the Commission 
seeks comment on whether at some point in the future (e.g., five years, 
ten years, twenty years) consumer demand and spectrum-intensive 
applications and technologies could exhaust the capacity of spectrum in 
rural areas that is currently assigned over CMAs.
2. Optimal Service Area Size(s) for Remaining Licenses
    9. In the event the Commission decides that there is a need for 
license sizes other than EAGs for the 700 MHz Band licenses that have 
yet to be auctioned, the Commission must determine the appropriate 
initial service area size, or combination of sizes, for those licenses. 
For instance, the Commission could modify the current service area 
designations for the 700 MHz Band to include one or more license sizes 
other than EAGs, or a combination thereof, or keep in place the service 
areas currently reflected in its rules. The Commission therefore seeks 
comment on the license size or combination of license sizes that should 
be provided.
    10. First, the Commission seeks general comment on the costs 
associated with the initial service area sizes the Commission adopts in 
the 700 MHz Band. The Commission recognizes that consumer needs and 
geographic coverage will change over time, and the Commission 
anticipates that there will be a need for providers to aggregate or 
disaggregate spectrum holdings as they address these evolving needs and 
market demands. Accordingly, the Commission seeks comment on the 
transaction costs associated with pre- and post-auction aggregation and 
disaggregation. Both large nationwide providers as well as small 
regional and rural providers may be able to make use of this spectrum, 
yet the optimal size of geographic service area is different for these 
two types of providers, and licenses for areas that are larger or 
smaller than desired will impose transaction costs on those parties 
that wish to acquire them. Thus, the Commission considers the degree 
and likelihood of such costs as 700 MHz Band spectrum is licensed in 
the future, and the extent to which the transaction costs of 
aggregating, disaggregating, or partitioning spectrum are a significant 
concern for those parties that most highly value this spectrum. Parties 
should also address any costs resulting from the unwillingness to 
divide spectrum and service areas due to a lack of license 
marketability or other financial considerations.
    11. In addition to seeking comment on the continued use of the EAGs 
in the band, which consist of six geographic service areas, the 
Commission seeks comment on whether to license the unauctioned 
spectrum, for example, by using the twelve Regional Economic Area 
Groupings (REAGs), the 52 Major Economic Areas (MEAs), or some other 
large regional licensing area. To the extent the Commission adopts 
large geographic service areas for the 700 MHz Band other than EAGs, 
the Commission seeks comment on whether REAGs may have advantages over 
EAGs. On the other hand, the Commission requests comment on whether 
substituting REAGs for EAGs may have disadvantages.
    12. If the Commission determines that smaller areas should be 
provided, it could license the spectrum or some part thereof on the 
basis of local areas, such as Metropolitan Statistical Areas (MSAs), 
Rural Service Areas (RSAs), or EAs. The Commission seeks comment on the 
use of smaller, local license areas based on these, or some other small 
area sizes. In particular, the Commission asks that commenters address 
the request by Rural Cellular Association (RCA), as supported by other 
parties, that the Commission assign additional CMA-sized licenses in 
the 700 MHz Band. Finally, the Commission seeks comment on whether a 
combination of different license sizes should be adopted and, if so, 
what combination should be reflected in its rules for the spectrum.
    13. Notwithstanding the flexibility of use that permits 700 MHz 
Band spectrum to be used for any service consistent with the band's 
allocation, commenting parties should describe any anticipated 700 MHz 
Band service offerings that demonstrate a need for greater access to 
this spectrum on a specific geographic basis. Commenters should explain 
how certain service area sizes correspond to the business plans of 
potential licensees and thus avoid the transaction costs that could be 
associated with aggregation, disaggregation, or partitioning. 
Commenters should also identify the service area sizes that best suit 
the anticipated uses for 700 MHz Band spectrum. The Commission could 
assign all remaining spectrum in the 700 MHz Band using a combination 
of larger and smaller areas. Alternatively, it could employ medium-
sized license areas (e.g., MEAs). In such a case, commenters should 
consider whether the use of medium-sized initial service areas would be 
less efficient than a combination of differently sized service areas, 
given that transaction costs would be potentially incurred by auction 
winners of both small and large service areas that may have to 
aggregate, partition, or disaggregate spectrum in order to meet their 
particular spectrum needs.

[[Page 48509]]

    14. The Commission seeks comment on the type of services that 
commenters believe will be accommodated in the service areas they 
favor, the economic advantages of adopting their favored approach, and 
what sized service area would be most advantageous for the particular 
service. The Commission also seeks comment on whether changes related 
to developments in technology should affect the appropriate size of 
initial service areas. If there are different types of new technologies 
and services being created for these markets, commenters should address 
whether such developments support a certain service area size for 
portions of the 700 MHz Band.
    15. In addressing the appropriate size(s) of service areas for 700 
MHz Band licenses, the Commission seeks comment on any impact of using 
smaller service areas that cannot be used as building blocks to create 
larger service areas should the Commission adopt a combination of 
license area sizes for the unauctioned spectrum in the 700 MHz Band. 
Specifically, under a combination approach, the Commission seeks 
comment on whether it would be preferable to assign licenses over large 
and small areas that are based on the same geographic unit (e.g., MEAs 
and EAs).
    16. In the 700 MHz Band, the Gulf of Mexico was divided between two 
EAGs for EAG licensing, whereas it was designated as a separate area 
for CMA licensing. In the event that the Commission decides to revise 
its prior determinations regarding license sizes in the 700 MHz Band, 
the Commission seek comment on including the Gulf of Mexico as part of 
larger service areas, or whether the Commission should separately 
license one or more service areas to cover the Gulf of Mexico.
3. Spectrum Block(s) Suitable for Potential Reassignment
    17. In the event that the Commission decides to provide for service 
area sizes other than EAGs in future 700 MHz Band auctions, the 
Commission seeks comment on which of the spectrum block(s) in the band 
that have not been auctioned should be re-designated to a different 
service area size or sizes. The Commission seeks comment, for example, 
on the Rural Telecommunications Group's (RTG) suggestion that the 
Commission provide CMA licensing in the Lower 700 MHz Band's Block B 
and in the Upper 700 MHz Band's Block C.
    18. With respect to the blocks in the Upper 700 MHz Band, the 
Commission seeks comment on the use of CMA or other small service area 
licenses, and which spectrum block or blocks in that band, if any, 
should be licensed on that basis. The Commission asks commenters to 
consider the presence of public safety systems, which, under Commission 
rules, receive special protection against harmful interference. For 
example, equipment operating in the Upper 700 MHz Band Blocks C and D 
must meet strict out-of-band emission (OOBE) limits to protect public 
safety operations. Due to the relatively small spectral separation 
between these blocks and the public safety spectrum, such equipment may 
have to employ enhanced filtering, which would likely add to the cost 
of base and mobile equipment. On the other hand, there may be certain 
spectrum blocks within the Upper 700 MHz Band that, because they are 
farther removed from the public safety spectrum, will require less 
costly equipment than equipment operating in spectrum blocks closer to 
the public safety bands. Thus, the Commission seeks comment on the 
impact of equipment costs in general if the Commission decides to 
revise the size of service area for Upper 700 MHz Band spectrum. The 
Commission seeks comment on which spectrum blocks in the current Upper 
700 MHz band plan (i.e., Blocks C or D), or in any revised band plan, 
would incur the greatest and least equipment costs and the extent to 
which such additional costs could affect the provision of service.
    19. Given these possible considerations relating to equipment 
costs, the Commission also seeks comment on whether any new CMA or 
other small service area licenses should be located in the Lower 700 
MHz Band, rather than the Upper 700 MHz Band, if the Commission decides 
to revise existing band plans to provide for small area licenses. In 
the event that additional equipment cost issues might make it 
preferable to locate new small-area licenses in the Lower 700 MHz Band, 
the Commission seeks comment on whether its 6 megahertz spectrum blocks 
would efficiently facilitate the implementation of 1xEV-DO and Wideband 
Code Division Multiple Access (CDMA) technologies--the third-generation 
(3G) technologies of CDMA and GSM networks--in the Lower 700 MHz Band. 
The Commission also seeks comment on whether 802.16 (WiMax), a possible 
alternative to 1xEV-DO and Wideband CDMA technologies, would support a 
variety of bandwidths, including 6 megahertz, and whether WiMax 
potentially could be readily accommodated on Lower 700 MHz Band 
spectrum blocks. In addition, the Commission seeks comment on the 
ability of 6 megahertz segments to accommodate high-speed data systems 
similar to the MediaFLO multi-media system being implemented by 
Qualcomm Inc. (Qualcomm) on Block D in the Lower 700 MHz Band.
    20. In the event the Commission decides to locate additional CMA or 
other small service area licenses in the Lower 700 MHz Band, the 
Commission seeks comment on which spectrum blocks in that band should 
be licensed on that basis. The Commission asks that comments address 
whether any particular spectrum blocks in the Lower 700 MHz Band (i.e., 
Blocks A, B, and/or E) would be better suited for small-area licensing 
than other blocks, and to state the reasons for supporting the use of 
any one or more of these spectrum blocks for this purpose.
    21. Specifically, the Commission seeks comment on the impact of 
designating the unpaired 6 megahertz Block E in the Lower 700 MHz Band 
for small-area licensing. If 6 megahertz is sufficient to meet small 
and/or rural carriers' spectrum needs, commenters should address 
whether there are broadband technologies that can operate on unpaired 
spectrum such that the 6 megahertz of spectrum in Block E would be 
suitable for potential reassignment. On the other hand, the Commission 
seeks comment on what spectrum in the Lower 700 MHz Band should be 
licensed over CMAs or other small service areas if additional paired 
spectrum is determined to be necessary and/or appropriate for small 
service areas.
    22. The Commission notes that if it locates a CMA-based license 
adjacent to an EAG (or other differently sized area) in the Lower or 
Upper 700 MHz Band, there may be an impact on aggregation, including on 
the level of transaction costs. Thus, the Commission seeks comment on 
whether aggregation may be more difficult and complicated to accomplish 
if spectrum blocks of differing geographic sizes are located adjacent 
to one another, and what effect those factors should have on its 
consideration of the current band plan.
    23. The Commission also seeks comment on whether, and to what 
extent, there would be an impact on the need to provide protection to 
TV Channel 51 if the Commission were to provide for licensing areas 
that are smaller than EAGs in the adjacent Lower 700 MHz Band Block A.

B. Size of Spectrum Blocks

    24. To the extent the Commission decides to auction and assign 
additional licenses over service area sizes other than the six EAGs, 
the Commission also

[[Page 48510]]

seeks comment on whether the Commission could better accommodate such 
assignments by reconfiguring or sub-dividing existing spectrum blocks 
in the band plans in the 700 MHz Band. The Commission seeks comment 
generally on whether the Commission should reconfigure the license 
blocks in the Upper 700 MHz Band, the Lower 700 MHz Band, or both. 
Although the Commission believes the Commission should retain the 
current band plan in the Lower 700 MHz Band, the Commission 
nevertheless seeks comment on potential changes to the size of the 
spectrum blocks in the Lower 700 MHz Band. The Commission also 
discusses the possibility of revising the size and pairing of licensed 
spectrum blocks in the Upper 700 MHz Band. In particular, the 
Commission seeks comment on dividing the 20-megahertz Block D license 
in the Upper 700 MHz Band into two or more license blocks. In addition, 
the Commission seeks comment on whether and how to make more licenses 
available to be potentially assigned on a geographic basis or bases 
smaller than EAGs, and on ways to provide licenses that may better 
reflect recent developments. Although the Commission seeks comment on 
this issue primarily with respect to unauctioned licenses, there are 
certain issues which the Commission seeks comment on that relate to 
already auctioned spectrum, i.e., whether to change the size and 
location of the spectrum blocks in the Lower 700 MHz Band, and the use 
of a ``two-sided auction.''
    25. The Commission seeks comment on whether the spectrum blocks in 
the Lower 700 MHz Band should be maintained at their current 6 
megahertz alignment and sizes. The spectrum comprising Lower 700 MHz 
Band Blocks C and D, consisting of 18 of the 48 megahertz in the Lower 
700 MHz Band, has already been auctioned, and the Commission believes 
that the location of these auctioned blocks limits its ability to 
reconfigure the remaining spectrum blocks in the Lower 700 MHz Band. 
The Commission is seeking comment in this NPRM on the use of 5 
megahertz blocks in the Upper 700 MHz Band. However, the use of 5 
megahertz blocks in the Lower 700 MHz Band appears to be problematic. 
For example, considering only the 12 megahertz of spectrum located at 
698-710 MHz (i.e., Blocks A and B), if the Commission were to place two 
5 megahertz blocks in this band, this would leave two megahertz of 
spectrum in the band that would have to be separately assigned. Also, 
because the 698-710 MHz band is paired with the 728-740 MHz band, this 
circumstance would apply to the 728-740 MHz band as well. The 
Commission nevertheless seeks comment on whether the Commission should 
make any changes to the size and location of spectrum blocks in the 
Lower 700 MHz Band and, if so, what those changes should be.
    26. With respect to the Upper 700 MHz Band, the Commission seeks 
comment on U.S. Cellular Corporation's (USCC) proposal to divide the 
current 20 megahertz Block D into two separate 10 megahertz blocks. 
USCC proposes that one of the new 10 megahertz blocks be assigned over 
EAs, and the other new 10 megahertz block be assigned over EAGs. The 
Commission seeks comment on possibly increasing the overall number of 
licenses available in any given geographic area by dividing Upper 700 
MHz Band Block D into two or more smaller-sized blocks, and thus 
provide one or more additional licenses.
    27. The Commission seeks comment on whether the provision of an 
additional 10 megahertz paired block in the Upper 700 MHz Band (by 
dividing the current Block D into two such blocks) would facilitate the 
implementation of a wider variety of technologies in the band. A 10 
megahertz paired block can readily accommodate Wideband CDMA and 1xEV-
DO technologies, and dividing Block D into two such blocks would, 
therefore, provide an additional license that could employ one of these 
technologies. In addition, commenters should address whether 5 
megahertz segments accommodate other systems that have recently been 
developed.
    28. The Commission also seeks comment on whether to divide the 
current 20 megahertz paired Block D into more than two smaller paired 
blocks to better accommodate other new technologies. For example, 
systems based on 802.16 standards (WiMax) could potentially operate on 
a variety of bandwidths ranging from 1.25 to 20 megahertz, including a 
number of bandwidths that are 5 megahertz or smaller. Accordingly, the 
Commission seeks comment on whether a division of the 10 megahertz 
segments of paired Block D to create two or more smaller blocks--e.g., 
1.25, 1.75, and 7 megahertz blocks--might better accommodate this 
technology. The Commission also seeks comment on other possible block 
sizes--either larger or smaller than the current blocks sizes--that 
might be supported by other existing or potential technologies.
    29. On the other hand, the Commission seeks comment on any 
disadvantages that may result from sub-dividing Upper 700 MHz Band 
Block D into two or more blocks. Comments should address whether the 
two licenses in the Upper 700 MHz Band (along with the five total 
licenses in the Lower 700 MHz Band) are sufficient to help enhance 
competition among a wide variety of providers and applicants. The 
Commission asks that comments consider whether a 20 megahertz paired 
block licensed on, e.g., CMAs, in the Upper 700 MHz Band would help 
enhance competition among a wider variety of providers and applicants.
    30. The Commission also seeks comment on whether it should sub-
divide Block D into two 10 megahertz paired blocks given that, in doing 
so, the overall spectrum efficiency of the band may be decreased. The 
Commission seeks comment as well on whether, if it sub-divides Block D 
into two blocks, it should necessarily divide the block into two equal-
sized 10 megahertz block pairs. WiMax, for example, may be able to be 
accommodated on 5 megahertz blocks, but the WiMax Forum has certified 
the use of 3.5, 7, and 10 megahertz bandwidths for 802.16-based 
equipment. The Commission also seeks comment on the effect of changing 
the block sizes on the overall spectrum efficiency of the band based on 
other existing or potential technologies.
    31. Finally, the Commission asks that commenters addressing 
proposals to reconfigure existing spectrum blocks in the 700 MHz Band 
also address existing and/or potential opportunities to aggregate new 
licenses and existing licenses. The Commission seeks comment on 
whether, for 700 MHz Band licenses, any changes to Commission 
competitive bidding rules are necessary or desirable in order to 
facilitate the efficient aggregation of new licenses, in light of the 
existing spectrum blocks for 700 MHz Band licenses and any spectrum 
blocks that may be proposed.
    32. The Commission further notes that, following an auction, 
parties that wish to do so may aggregate spectrum covered by new 700 
MHz Band licenses with spectrum covered by existing 700 MHz Band 
licenses available in the secondary market. The Commission seeks 
comment on whether any Commission action is necessary or desirable to 
facilitate the aggregation of new and existing 700 MHz Band licenses in 
the secondary market, in light of the existing and/or proposed 700 MHz 
Band spectrum blocks. If so, the Commission asks that commenters 
address whether any such steps require changes to existing Commission 
competitive bidding or secondary market rules.

[[Page 48511]]

    33. Alternatively, the Commission could facilitate such aggregation 
of spectrum by enabling an auction in which licenses for currently 
unassigned spectrum as well as licenses for spectrum previously 
assigned in the 700 MHz Band could be offered for sale in a single 
auction, a mechanism sometimes referred to as a ``two-sided auction.'' 
Such a ``two-sided auction'' could be implemented in several ways. As 
one example, the Commission might allow incumbent licensees to return 
their licenses to the Commission in exchange for a credit, which could 
be based on the prices of licenses for spectrum formerly associated 
with the returned licenses as determined in an auction. Alternatively, 
the Commission might allow existing licensees to offer their licenses 
in the auction, but relinquish the licenses in exchange for a credit 
only if prices (and related credit values) reached a certain level. A 
variation on this approach would be to allow incumbents to include 
their licenses in the auction inventory but ``pay themselves'' the 
winning bid if they chose to outbid other participants. In any of these 
alternatives, the Commission could provide that credits received in 
exchange for returned spectrum licenses would be transferable, and that 
bidders could use the credits to obtain other spectrum licenses in the 
same auction or another auction of spectrum licenses for the same or a 
different service. Consequently, incumbent licensees could exchange 
their current licenses for other spectrum licenses using credits, or 
transfer the credits to other bidders wishing to obtain licenses.
    34. Commenters addressing actions the Commission might take to 
create a two-sided auction should address details of how the existing 
licenses could be incorporated into the auction, how the incumbent 
licensees could be compensated for ``selling'' a license, and whether 
any particular aspects of such an auction, either discussed in the NPRM 
or proposed by commenters, might exceed the Commission's competitive 
bidding authority, under either the Commission's current rules or the 
Communications Act. In particular, commenters should consider whether 
the use of credits, or other means of compensating incumbents for their 
licenses, may require additional authority or the adoption of new 
Commission rules or procedures. Among other things, commenters should 
consider whether there are particular design elements of a two-sided 
auction that would help such a mechanism work more efficiently. 
Commenters also should address the extent to which a two-sided auction, 
by offering all available (Commission-held and previously assigned) 
spectrum simultaneously, may provide an alternative with lower 
transaction costs as compared to the secondary market and whether such 
an alternative is needed. In addition, the Commission seeks comment on 
whether the use of a two-sided auction could or would promote 
opportunities for interested parties to better meet their needs for 
particular amounts of spectrum in this band. The Commission asks 
whether an ability to acquire more spectrum or aggregate it differently 
would help promote service, especially in rural areas. Finally, 
commenters should address any issues or other matters which may relate 
to competitive bidding as a result of conducting a two-sided auction in 
the 700 MHz Band.

C. Facilitating Access to Spectrum and Provision of Service to 
Consumers

    35. First, the Commission considers the possibility of modifying 
performance requirements for unauctioned licenses to the extent they 
could better promote both spectrum access and service provision. 
Second, for all 700 MHz Band licensees, the Commission seeks comment on 
options that may facilitate access to spectrum in the secondary market 
for all potential service providers, including those specifically 
seeking to deliver service to rural areas. Finally, the Commission 
seeks comment on policies the Commission could implement to promote 
service on tribal lands.
1. Performance Requirements
    36. The Commission seeks comment on whether it needs to revise the 
existing ``substantial service'' performance requirement, or possibly 
adopt alternative build-out rules, for unauctioned licenses in the 700 
MHz Band in order to further access to spectrum and provision of 
service to consumers, including those in rural areas. To the extent 
commenters believe the current requirement, or its safe harbors, should 
be revised, the Commission seeks comment on whether other approaches 
may offer certain additional benefits that outweigh possible additional 
costs. These options could involve adopting rules that require specific 
actions by licensees in order to retain their licenses.
    37. The current performance requirement for the 700 MHz Band is 
based on the ``substantial service'' standard defined in 47 CFR 
27.14(a). The Commission seeks comment as to the effectiveness of this 
approach in promoting service in the unauctioned portions of the 700 
MHz Band, especially in rural areas. Under this standard, the 
Commission established ``safe harbors'' to provide examples of what 
would be considered substantial service in the 700 MHz Band. The 
Commission seeks comment on whether any changes to these safe harbors 
are warranted to better promote service to all areas. To the extent 
commenters address whether 47 CFR 27.14(a) or its safe harbors should 
be revised, they should also consider whether any other provisions in 
the existing part 27 rules require specific recognition or adjustment 
to comport with the potential application of those performance 
requirements for 700 MHz Band licensees. For example, the Commission 
seeks comment on whether it needs to clarify the extent to which 
certain of the Commission's non-part 27 rule parts, as listed in 47 CFR 
27.3, apply to 700 MHz Band licensees with regard to performance 
requirements relating to build-out and/or provision of service. In 
addition, the Commission notes that 47 CFR 27.15 describes inter alia 
elections for geographic partitioning and spectrum disaggregation to 
ensure the Commission's performance requirements are met when licenses 
are divided spectrally or geographically between two or more parties. 
The Commission seeks comment on whether to change any aspect of 47 CFR 
27.15 in order to help ensure the provision of service to consumers, 
including any rural areas that are part of a partitioned or 
disaggregated license.
    38. The Commission also seeks comment on whether it should further 
define safe harbors for licensees seeking to meet the part 27 
``substantial service'' standard on 700 MHz Band spectrum. The 
Commission notes, for example, that the Commission's safe harbors for 
700 MHz Band licensees did not specifically mandate that a particular 
level of service be provided in rural areas. Rather, the Commission 
cites past statements that a licensee that limits buildout to urban and 
high density areas will not necessarily be ensured of license renewal 
even if it meets the construction benchmarks, as well as past 
statements that it believed substantial service requires the licensee 
to buildout in rural areas as well. The Commission cites past guidance 
on rural construction which established a safe harbor for providing 
mobile service to rural areas. In particular, the Commission cites 
statements that a mobile wireless service licensee in various bands, 
including the 700 MHz Band, can provide substantial service by

[[Page 48512]]

serving at least 75 percent of the geographic area of at least 20 
percent of the `rural areas' within its licensed area. The Commission 
seeks comment on whether this ``rural safe harbor'' for mobile wireless 
services should continue to apply to the 700 MHz Band licenses that 
have not been auctioned, or whether it should be revised. The 
Commission also seeks comment as to whether to apply a safe harbor to 
other types of services (e.g., fixed) in the 700 MHz Band and, if so, 
what other services should be included and how the safe harbor should 
be defined. In addition, the Commission asks how ``coverage'' would be 
measured for these other services so as to improve incentives to serve 
rural areas. Finally, the Commission seeks comment on whether there are 
other safe harbors pertaining to construction in rural areas that 
should fulfill the substantial service requirement and that would 
provide additional regulatory certainty regarding the Commission's 
performance requirements.
    39. As an alternative to maintaining the substantial service 
standard that the Commission previously determined should apply to the 
700 MHz Band, the Commission seeks comment on whether it should apply 
more specific construction benchmarks to the unauctioned licenses in 
the 700 MHz Band. In the past, such construction benchmarks have 
required a licensee to make service available to a certain percentage 
of the population or geographic area.
    40. The Commission seeks comment on whether it should adopt a 
population-based construction requirement as part of any possible 
revisions to the licensing rules in some or all of the spectrum bands 
to be auctioned in the 700 MHz Band. If such a benchmark were adopted, 
the Commission seeks comment on the precise population benchmark that 
should be adopted, and whether it should be more extensive than the 
previous Personal Communications Service (PCS) rules, such as requiring 
coverage sufficient to provide service to one-half of the population of 
the license area within five years and three-fourths within ten years.
    41. As another option, the Commission seeks comment on whether a 
benchmark based on geography for 700 MHz Band unauctioned licenses 
would be more effective in promoting service to underserved areas 
without offsetting disadvantages. In this NPRM, the Commission seeks 
comment on whether geographic-based benchmarks warrant further 
consideration and, in particular, whether these rules could be designed 
to promote build-out in rural portions of these licenses yet to be 
auctioned. If so, the Commission seeks comment on how such a geography-
based benchmark could or should be structured. The Commission also 
seeks comment on any other geographic benchmarks that would be 
appropriate for these licenses. For any proposed benchmark, the 
Commission asks commenters to describe how the Commission should apply 
it to the variety of fixed, mobile, broadcast, and private services 
that are authorized in this spectrum.
    42. The Commission also seeks comment on whether it should consider 
adopting a ``keep what you use'' re-licensing mechanism for the 
unauctioned spectrum in the 700 MHz Band, similar to the approach 
adopted for Cellular Radiotelephone Service (cellular) service in the 
1980s. Under a ``keep what you use'' rule, the Commission would reclaim 
any ``unused'' spectrum in a license area after a pre-defined period of 
time. The Commission also seeks comment on whether it should consider a 
modified version of this rule, such as a ``triggered keep what you 
use'' rule, in which the Commission, rather than reclaiming ``unused'' 
spectrum after a period of time, would reclaim spectrum only in the 
event a party other than the licensee (e.g., a spectrum lessee) seeks 
access to the licensed spectrum in an unserved portion of the license 
area. Similarly, the Commission seeks comment on whether the Commission 
should consider applying either the ``keep what you use'' rule or 
``triggered keep what you use'' rule only to a portion of the spectrum 
(e.g., one-half) of the spectrum that otherwise would be reclaimed, or 
eligible for reclamation, by the Commission.
    43. Given that these variations of the ``keep what you use'' 
approach may make unused spectrum available to other parties interested 
in gaining access to spectrum, the Commission seeks comment on whether 
it may be an effective means to provide additional service, including 
in rural areas. To the extent that licensees may be less likely to use 
the spectrum in rural portions of their license areas, the Commission 
also seeks comment as to whether the Commission should apply this 
approach only to licenses covering rural areas, or only to that portion 
of licenses that covers rural areas.
    44. To the extent commenters believe a ``keep what you use'' 
mechanism is appropriate, the Commission seeks comment on how ``use'' 
could or should be defined, given the goals the Commission seeks to 
further. In particular, the Commission seeks comment on how it should 
define what type of activities demonstrate that the spectrum is being 
``used'' in this context, considering that the part 27 rules facilitate 
a wide variety of services and uses in this band.
2. Facilitating Access to Spectrum in the Secondary Market
    45. In addition to facilitating access to spectrum based on 
Commission rules relating to the size of geographic license areas and 
spectrum blocks, the Commission also seeks comment on the extent to 
which it could facilitate access through possible revisions to its 
existing secondary markets policies and rules applicable to both 
unauctioned and previously auctioned licenses in the 700 MHz Band. The 
Commission notes that it took significant steps in 2003 and 2004 to 
facilitate the ability of entities, through spectrum leasing 
arrangements, to gain access to licensed spectrum in areas and amounts 
suited to their particular spectrum needs, including through a 
streamlined or immediate approval process for transfers and assignments 
of licenses.
    46. Given the passage of time, the Commission now seeks comment on 
whether there are additional mechanisms relating to its secondary 
market policies that should be adopted so as to help move spectrum from 
licensees to other entities that place a higher value on its use. For 
instance, the Commission seeks comment on whether requiring licensees 
to make ``good faith'' efforts to negotiate with potential spectrum 
lessees could help increase access to spectrum, including in rural 
areas, and thus promote the development of these markets. Potential 
``good faith'' requirements could take one of several forms. At a 
minimal level, licensees could be required to establish a contact point 
for potential lessees, e.g., providing the name and contact information 
of a designated representative in the licensee's organization who would 
accept inquiries from potential spectrum lessees. Under an alternative 
approach, licensees could be required to engage in ``good faith'' 
negotiations with potential spectrum lessees, with the Commission 
determining the minimum steps necessary to meet this requirement. For 
example, 700 MHz Band licensees could be required to have a minimum 
number of meetings with potential spectrum lessees and/or provide their 
terms for an acceptable spectrum leasing arrangement. Would the use of 
such requirements for licensees in the 700 MHz Band encourage licensees 
to more seriously consider the opportunity cost

[[Page 48513]]

of the spectrum they hold but do not use? On the other hand, given the 
large number and diverse nature of potential users in this band, the 
Commission seeks comment on whether a requirement to, e.g., establish 
contact and/or communicate with all interested parties would be unduly 
burdensome or subject to abuse. The Commission also seeks comment on 
whether it should adopt additional mechanisms to encourage partitioning 
and/or disaggregation of 700 MHz Band spectrum and the extent to which 
such policies ultimately may promote more service, especially in rural 
areas.
    47. In addition, the Commission seeks comment on whether it could 
use its existing oversight role during the license renewal process to 
review a 700 MHz Band licensee's actions during its license term, 
including its participation in secondary market transactions, and 
evaluate issues related to spectrum access, service to rural areas, or 
both. Under this approach, licensees of unauctioned and auctioned 700 
MHz Band spectrum would be subject to greater informational filings and 
Commission review at renewal even if they are not involved in a 
comparative renewal proceeding.
3. Facilitating Access to Spectrum and the Provision of Service to 
Tribal Lands
    48. Ensuring that qualifying tribal lands have access to 
affordable, quality telecommunications services continues to be a goal 
of the Commission. Promoting access to spectrum and the provision of 
service on tribal lands is an important means to meet that goal. 
Accordingly, the Commission seeks comment on what steps, if any, it can 
take with regard to the 700 MHz Band to further facilitate access to 
spectrum and the provision of service to tribal lands. Some of these 
steps, such as the performance requirements discussed in this NPRM, 
generally would be applicable to the unauctioned spectrum in the 700 
MHz Band. In contrast, policies to facilitate access to spectrum in 
tribal lands could be applied to both unauctioned and the already 
auctioned spectrum in this band.
    49. The Commission's rules currently promote deployment of wireless 
services on tribal lands through its Tribal Lands Bidding Credit. The 
Commission seeks comment on whether it should make any potential 
adjustments to its Tribal Land Bidding Credit rules as they apply to 
the 700 MHz Band licenses to be auctioned in order to further the 
deployment of wireless services to tribal lands. The Commission also 
seeks comment on use of the Tribal Land Bidding Credit in this context 
given statutory requirements that the Commission commence the auction 
for recovered analog broadcast spectrum no later than January 28, 2008, 
and deposit the proceeds from such an auction in the Digital Television 
Transition and Public Safety Fund no later than June 30, 2008. For 
instance, the Commission asks whether it needs to reduce for the 700 
MHz Band auction the 180 day period that winning bidders currently have 
to obtain a Tribal Lands Bidding Credit. Alternatively, the Commission 
asks whether it should accept as sufficient from winning bidders in a 
700 MHz Band auction either self-certification or a promise to 
negotiate in good faith with the tribal government. In either case, the 
Commission would thereby rely, at least in part, on the winning 
bidder's need to obtain consent of the tribal government to ensure that 
the tribes are adequately included in the process. The Commission asks 
what, if any, other changes should be made to the Tribal Lands Bidding 
Credit process in light of the special circumstances for the 700 MHz 
Band. In addition, given the statutory deadlines, the Commission seeks 
comment on whether its goal of promoting the deployment of wireless 
services to tribal lands would be better served with respect to the 700 
MHz Band by exploring other means to promote access to spectrum and the 
provision of service in tribal lands.
    50. The Commission also seeks comment on whether it should consider 
applying a ``keep what you use'' performance requirement to the tribal 
lands portion of geographic license areas, even if it decides to apply 
some other standard, such as substantial service, to all other areas of 
a license that are not tribal lands. In addition, the Commission seeks 
comment on whether any policies designed to facilitate access to 
spectrum, such as requiring ``good faith'' negotiations or other 
efforts by licensees in response to a request for a spectrum lease, 
should be applied specifically to tribal lands, even if the Commission 
decides not to apply these policies to non-tribal license areas. 
Similarly, the Commission asks whether there are other steps that it 
could take to revise its partitioning and disaggregation rules in order 
to better facilitate access to spectrum on tribal lands. Commenters 
also should consider, as discussed in this NPRM, whether the provision 
of service to tribal lands could be codified as a criteria or factor 
relevant to a licensee's demonstration that renewal is in the public 
interest.
    51. To the extent the Commission should revise its performance 
requirements and/or policies to facilitate access to spectrum and apply 
these policies only to tribal lands, it seeks comment generally on how 
such a process should be implemented. For instance, the Commission 
seeks comment on how a ``keep what you use'' approach for tribal lands 
would operate in the event all other license areas were subject to 
different performance requirements. Similarly, the Commission seeks 
comment on the feasibility of applying one set of secondary markets 
rules to those portions of a license that cover tribal lands while 
applying different rules to the rest of a licensee's geographic area.
    52. The Commission also seeks comment on whether it would 
facilitate access to spectrum and promote service to tribal lands to 
create license areas based on the contours of a reservation or any 
tribal boundary line. The Commission seeks comment whether adopting 
this policy would have the unintended consequence of partitioning off 
licenses covering tribal lands such that the newly created license 
areas will remain unbuilt, because companies will bid only for the 
licenses not covering the tribal lands. For instance, the Commission 
asks whether it would generally be economically feasible to provide 
service only within a tribal land service area. The Commission notes 
that, unlike other service areas, many tribal land service areas would 
result in licensed areas wholly contained within the larger geographic 
area of other licensees. The Commission asks whether: (1) Interference 
issues would be more significant because of the greater number of 
borders between licensed service areas; and (2) limitations of system 
design may make it difficult to engineer solutions around multiple 
small areas. It asks whether any of these technical obstacles could be 
mitigated by limiting tribal land license areas to tribal lands of a 
particular size or greater, or to those not contained wholly within 
another license area. The Commission also asks commenters to address 
possible auction-related difficulties caused by this approach, 
especially those for potential bidders. For instance, if the Commission 
were to implement this approach for a single spectrum block for which 
the basic geographic area was CMAs, the 585 federally recognized tribal 
lands, combined with the 734 CMAs, would result in 1319 separate 
licenses being offered for that one block.
    53. Finally, in the event the Commission adopts other policies 
discussed in this NPRM, such as increasing the number of spectrum 
blocks made available and/or the

[[Page 48514]]

amount of spectrum assigned by small geographic license areas in the 
700 MHz Band, the Commission seeks comment on whether policies focused 
solely on tribal lands would be necessary.

D. Criteria for Renewal

    54. The Commission seeks comment on whether to amend its rules to 
clarify or modify the requirements and procedures of the renewal 
process for licenses in the 700 MHz Band, including both licenses that 
have already been auctioned and those that have yet to be auctioned. 
For example, the Commission seeks comment on whether to use renewal 
criteria to replace the procedures for the filing of competing 
applications at renewal time. For instance, the licenses could revert 
to the Commission for re-auction should a license not be renewed. The 
Commission also asks commenters to address whether any amendments of 
its rules on the renewal process should be limited to the unauctioned 
700 MHz Band licenses, or whether any such amendments also should apply 
to those 700 MHz Band licenses which already have been auctioned in 
order to have a unitary regime for these licenses. The renewal criteria 
and process for authorizations for the 700 MHz Guard Bands at Blocks A 
and B in the Upper 700 MHz Band are beyond the scope of this NPRM.
    55. The Commission first seeks comment on whether 700 MHz Band 
licensees should be subject to requirements at renewal in addition to 
any end-of-term performance requirements. Licensees are required to 
meet ``substantial service'' under the performance requirements of 47 
CFR 27.14(a) as well as in the context of any renewal proceedings under 
47 CFR 27.14(b) of the Commission's rules. Although renewal of 700 MHz 
Band licensees is governed under 47 CFR 27.14(b) through (d) of the 
Commission's rules, which indicates that a comparative process is used 
to choose among renewal applicants based on certain showings, the rule 
does not describe the factors that the Commission will consider in 
connection with a license renewal application to the extent no 
competing application is filed. When establishing the part 27 rules 
that apply to the 700 MHz Band, the Commission notes that it stated 
only that it will require that a renewal application include at a 
minimum the following showing for a renewal expectancy: (1) A 
description of current service in terms of geographic coverage and 
population served or links installed; (2) an explanation of the 
licensee's record of expansion, including a timetable for the 
construction of new base sites or links to meet changes in demand for 
service; (3) a description of the licensee's investments in its system; 
and (4) copies of any Commission orders finding the licensee to have 
violated the Communications Act or any Commission rule or policy, and a 
list of any pending proceedings that relate to any matter described by 
the requirements for the renewal expectancy. Although the Commission 
did not codify any special informational showings from 700 MHz renewal 
applicants unless they are ``involved in a comparative renewal 
proceeding'' triggered by the filing of a competing application, 47 CFR 
27.14(b), licensees' renewal applications are nevertheless subject to 
Commission's review and approval based on general public interest 
factors (e.g., amount and type of service provided by the licensee 
during its license term). Accordingly, the Commission seeks comment on 
whether it should amend its rules to define the standards and 
informational filings that apply to license renewal applications for 
these licenses. These criteria for renewal would apply to 700 MHz 
authorizations that have been assigned, transferred, partitioned or 
disaggregated during their license terms. In particular, the Commission 
seeks comment on the requirements (or factors) that should be 
considered for 700 MHz Band licensees at renewal, including: the level 
of service and whether it was ``substantial''; whether service was ever 
interrupted and discontinued; whether service has been provided to any 
rural areas; whether a licensee has received any requests from others 
seeking to enter into spectrum leasing arrangements, and whether it has 
entered into any such arrangements; and any other factors typically 
associated with assessments of a licensee's level of service to the 
public. Commenters should address which, if any, of these or other 
elements should be codified as requirements for renewal or, in the 
alternative, whether the Commission should list factors that are 
relevant to a licensee's demonstration that renewal is in the public 
interest.
    56. In addition, the Commission seeks comment on whether it should 
integrate 47 CFR 27.14(a)'s ``substantial service'' performance 
requirement, and any new end-of-term requirements, into the renewal 
process for 700 MHz Band licenses. The Commission notes that, in its 
past orders, it focused on renewal in the context of partitioned and 
disaggregated licenses, and stated that to the extent a licensee meets 
the substantial service performance requirement, it will be deemed to 
have met this element of the renewal expectancy requirement regardless 
of which of the construction options it has chosen. Accordingly, to the 
extent the Commission's renewal requirements and at least some of its 
performance requirements apply at the end of a license term, the 
Commission seeks comment on the advantages and disadvantages of 
combining these requirements into, for example, a single substantial 
service provision in 47 CFR 27.14 of the Commission's rules. This rule 
section requires that licensees demonstrate ``substantial'' service 
both as a ``construction requirement'' ``within the prescribed license 
term'' and to obtain a renewal expectancy preference in a comparative 
hearing. 47 CFR 27.14(a) and (b). Thus, the Commission's rules require 
substantial service by the end of a 700 MHz Band licensee's term, the 
same point at which renewal filings would be reviewed and potentially 
granted. See 47 CFR 27.14(a).
    57. For instance, instead of requiring the enforcement of separate 
rules regulating construction or discontinuance of service, see 47 CFR 
1.955(a)(3) (providing that wireless licenses automatically terminate 
if service is permanently discontinued and stating that ``permanent 
discontinuance'' is defined in either the specific authorization or the 
service rules governing that authorization); but see 47 CFR 27.66 
(requiring Part 27 licensees that discontinue service to notify the 
Commission in certain contexts, but not providing a definition of 
``permanent discontinuance''), the Commission could replace such end-
of-term/mid-term requirement(s) and require 700 MHz Band licensees to 
submit informational showings in their renewal applications based on 
factors that could be used to determine whether a grant of renewal is 
in the public interest. Under this approach, all licensees, included 
those holding authorizations that have been assigned, transferred, 
partitioned or disaggregated during their license terms, would be 
subject to review on these criteria, and the Commission would not need 
to have separate procedures for assessing satisfaction of construction 
standards (e.g., standards pertaining to partitioned licenses under 47 
CFR 27.15(d)(1)), and for determining whether renewal criteria have 
been met. In the event that the Commission decides to integrate 
performance requirements and end-of-term requirements into the renewal 
process for 700 MHz Band licensees, the Commission seeks comment on 
whether

[[Page 48515]]

licensees who fail to meet such requirements could be subject to 
potential forfeiture penalties. If, for example, a licensee files for 
renewal, but fails to meet the substantial service requirement, the 
Commission seeks comment on whether it could be subject to forfeiture 
penalties under this approach.
    58. Finally, under a modified or combined 47 CFR 27.14 standard, 
the Commission seeks comment on whether to use codified renewal 
criteria to measure the 700 MHz Band licensees' level of service 
instead of relying on any performance incentives that may arise due to 
the possibility of competing applications being filed against a renewal 
(with the concomitant need for the incumbent to demonstrate 
``substantial service'' to receive a renewal expectancy preference). 
Although 47 CFR 27.14(b) through (d) of Commission rules indicates that 
a comparative process is used to choose among renewal and competing 
applicants, it is unclear what type of comparative hearing is to be 
employed. Under a modified 47 CFR 27.14 of the Commission's rules, the 
Commission could eliminate the filing of competing applications at 
renewal time and, for example, adopt a process by which licenses revert 
to the Commission for re-auction if a license is not renewed. To the 
extent such an approach is adopted, commenters should address the 
procedures for renewal processing, the components of a renewal filing 
and any demonstrations of ``substantial'' service or other 
requirements, provisions for petitions to deny renewal applications, 
and procedures governing dismissal/denial of renewal applications and 
subsequent re-licensing through competitive bidding to competing 
bidders. For example, if the Commission dismisses or denies a renewal 
application, the spectrum could automatically revert to either the 
Commission (in the case of geographic-area licenses) to re-license 
using competitive bidding or to the geographic-overlay licensee (in the 
case of site-specific licenses subject to reversionary rights for 
geographic-overlay licensees) as part of its licensed service area. 
Moreover, the petitioner could be eligible to participate in any 
auction of the non-renewed license. In addition, the Commission seeks 
comment on whether the petition to deny process, coupled with the 
ability of a petitioner to participate in any subsequent auction to re-
license spectrum that reverts to the Commission for lack of renewal, 
creates sufficient incentives to challenge inferior service or poor 
qualifications of licensees at renewal and thereby protect the public 
interest.

E. Length of License Terms

    59. The Commission seeks comment on whether the license terms 
applicable to both the unauctioned and auctioned spectrum in the 700 
MHz Band should be revised and, if so, in what manner. As the 
Commission notes, the Guard Band spectrum, and the rules applicable 
thereto, is not within the scope of this NPRM. Section 27.13(b), 47 CFR 
27.13(b), of the Commission's rules provides that initial license 
authorizations for spectrum in the 700 MHz Band will extend until 
January 1, 2015, except that a part 27 licensee commencing broadcast 
services will be required to seek renewal of its license for such 
services at the termination of the eight-year term following 
commencement of such operations. The Commission also asks whether the 
Commission should establish a uniform license term regardless of 
regulatory status associated with the services being provided.
    60. The Commission seeks comment on whether the license terms for 
both the unauctioned and already auctioned 700 MHz Band licenses should 
be revised in consideration of the delays in auctioning most of the 
licenses in the 700 MHz Band, the new mandate under the DTV Act to 
auction all spectrum in the 700 MHz Band by a date certain, and/or the 
establishment in the DTV Act of a date certain for the end of the DTV 
transition. Comments should address the impact that these factors may 
have on the development and use of the spectrum in the context of the 
appropriate license term length for the 700 MHz Band. The Commission 
notes that the period extending from the new firm deadline for the DTV 
transition, February 17, 2009, to the current January 1, 2015, 
termination date set forth in 47 CFR 27.13(b) is shorter than both the 
ten-year license term generally afforded to many other (including CMRS) 
licensees and the eight-year average time for complying with the 
performance requirements which the Commission considered when the 
current rule was first adopted in 2000. The Commission seeks comment on 
whether the changes to the DTV transition mandated by the DTV Act 
warrant a modification of the license terms currently in 47 CFR 
27.13(b) of the rules. The Commission also seeks comment on other 
considerations and developments that would support (or not support) 
extending or revising the license terms of these licenses.
    61. In the event that a change in the license term for these 700 
MHz Band licenses is warranted, the Commission seeks comment on what 
new license terms should be adopted. First, the Commission invites 
comment on whether it should adopt a new initial license term that 
would extend to a date certain, and what that date should be. For 
instance, the Commission seeks comment on whether the license term 
should extend until February 18, 2017. Consistent with the Commission's 
adoption of a license term that recognized an eight-year period after 
the then-target date for the end of the DTV transition, a new license 
term extending until February 18, 2017 would cover a period of eight 
years after the new firm deadline for the transition. The Commission 
also seeks comment on whether some other specific date may be more 
appropriate.
    62. In the alternative, the Commission seeks comment on whether a 
new license term should extend for a specified period of time rather 
than be tied to a specific termination date and, if so, what that 
period of time should be. For instance, the Commission seeks comment on 
whether the license term should be amended to extend for a period not 
to exceed ten years from the date of initial issuance or renewal. There 
may also be factors that relate specifically to the 700 MHz Band that 
support adopting a license term of some other length than ten years. 
Thus, the Commission seeks comment on whether 47 CFR 27.13(b) should be 
revised to provide a different term, either longer than ten years 
(e.g., 15 years), or less than ten years if conditions warrant such a 
change.
    63. The Commission asks that comments on the length of license 
terms also address its discussion in this NPRM concerning potential 
revisions to the performance requirements for licensees in the 700 MHz 
Band. The ``substantial service'' construction requirement in Section 
27.14(a) of the rules requires that licensees make a ``substantial 
service'' showing ``within the prescribed license term set forth in 
Sec.  27.13.'' See 47 CFR 27.14(a). If the Commission alters the length 
of license term, commenters should consider whether the Commission 
should modify or amend the existing performance requirements in 47 CFR 
27.14.
    64. Finally, the Commission seeks comment on whether to establish a 
uniform license term for all services provided by 700 MHz Band 
licensees, regardless of regulatory status. Licensees in the 700 MHz 
Band are authorized to provide a combination of different services in a 
single license: Common

[[Page 48516]]

carrier, non-common carrier, private internal communications, and 
broadcast services. These licensees also are permitted, consistent with 
Commission rules, to switch their regulatory status at any time prior 
to the end of their license period. As reflected in 47 CFR 27.13(b) of 
the rules, to the extent licensees offer services that qualify as 
broadcasting under the Communications Act, an eight-year license term 
applies from the onset of broadcast operations, whereas the license 
term extends until January 1, 2015 for non-broadcast operations. The 
Commission seeks comment on the impact of the two different license 
terms set forth in 47 CFR 27.13(b), depending on the service offered, 
on those situations where a licensee deploys services with both 
broadcast and non-broadcast components under a single license 
authorization. The Commission also seeks comment on the operation and 
impact of the two license terms on those situations where a licensee 
changes the type of service offered between broadcast and non-broadcast 
services during the term of the license. The Commission also seeks 
comment on what changes, if any, should be made to its current approach 
of administering different license terms within a single authorization.

F. Power Limits and Related Requirements

    65. The Commission seeks comment on whether to modify the power 
limits that apply to base stations operating in either the unauctioned 
or auctioned spectrum in the 700 MHz Band. Power limits for the Guard 
Band and Public Safety spectrum is beyond the scope of this NPRM.
    66. The Commission seeks comment on whether, and to what extent, 
the power limit of 1 kW ERP, which currently applies to base stations 
operating in Blocks C and D of the Upper 700 MHz Band, should be 
revised. Specifically, commenters should address whether a need or 
demand exists for a higher power limit in the Upper 700 MHz Band and 
what additional types of services could be implemented in the band if a 
higher power limit is permitted. The Commission requests that any 
commenters that propose raising the power limit in the Upper 700 MHz 
Band submit a technical analysis showing how their proposal would not 
increase the risk of interference to adjacent operations. Because the 
Commission is concerned that any increase in power beyond the current 1 
kW ERP limit could cause interference to Public Safety and Guard Band 
systems operating in the Upper 700 MHz Band, commenters should address 
whether permitting higher powered transmissions could cause 
interference to Public Safety or Guard Band operations. Specifically, 
the Commission seeks comment on whether a higher power limit, along 
with a 3 milliwatts/m2 or similar PFD limit, will adequately protect 
Public Safety and Guard Band mobile and base station operations from 
interference. If not, the Commission asks what PFD limits, or other 
restrictions, would be necessary to protect such operations. As the 
Commission discusses in the NPRM, the protection of commercial base 
stations from high-powered adjacent band transmissions is achieved 
through, among other things, the significant height differential that 
is likely to exist between high-powered transmitting antennas and 
commercial base station receive antennas. However, because Public 
Safety and Guard Band base station antennas may not operate at the same 
low heights as commercial base station antennas, Public Safety and 
Guard Band base stations could be susceptible to interference from 
adjacent band, high-powered base stations. Thus, more stringent 
technical requirements would appear to be needed to protect such 
stations. Given the importance the Commission attaches to preventing 
interference to Public Safety operations, the Commission will not adopt 
any modifications to its power limit rules that would cause 
interference to such operations in the Upper 700 MHz Band.
    67. The Commission seeks comment as well on whether a PFD limit 
would necessarily have to be applied to high-powered transmissions 
originating in all upper and lower C and D block spectrum in the Upper 
700 MHz Band, or whether it might be necessary to apply PFD limits to 
stations operating in only certain Upper 700 MHz Band spectrum blocks 
to protect Public Safety and Guard Band operations. In the event the 
Commission finds that certain spectrum blocks could accommodate such 
transmissions without the need for a PFD limit, the Commission asks 
commenters whether it should permit high-powered transmissions only on 
these spectrum blocks.
    68. The Commission also asks whether, if commenters believe that a 
general approach of employing PFD limits may not be sufficiently 
effective in preventing interference from higher-powered transmissions 
to adjacent channel operations, or if such transmissions could 
potentially cause interference to co-channel operations, the Commission 
should limit any increase in permissible power to, e.g., 20 kW, 10 kW, 
or 5 kW ERP, or not modify the current 1 kW ERP power limit at all. 
Commenters should also address whether such ``intermediate'' power 
limits in the Upper 700 MHz Band might be able to be implemented in 
some, or all, of the commercial Upper 700 MHz Band spectrum without the 
need for PFD limits to protect adjacent channel operations. In 
addition, regardless of whether the Commission decides to increase the 
power limit for base stations in the Upper 700 MHz Band, the Commission 
asks if it should, consistent with PCS and AWS, double the existing 
power limit, to 2 kW ERP, for rural areas only in the Upper 700 MHz 
Band (without the need for a PFD limit) and what benefit such an 
increase might provide in the provision of service in rural areas.
    69. Finally, the Commission seeks comment on whether any additional 
modifications to its Upper 700 MHz Band power limit rules would be 
appropriate. For example, in the event that the Commission authorizes 
base stations operating in all or in portions of the commercial blocks 
in the Upper 700 MHz Band to employ higher powered transmissions, the 
Commission asks whether it should adopt the same notification 
procedures for high-powered Upper 700 MHz Band operations that the 
Commission currently applies to high-powered Lower 700 MHz Band 
operations, and asks whether such notification procedures will 
adequately protect other Upper 700 MHz Band licensees from 
interference.
    70. The Commission also seeks comment on whether to revise the 50 
kW ERP power limit that applies to base stations operating in the Lower 
700 MHz Band. In the first instance, the Commission seeks comment on 
whether to revise the power limit with respect to the unauctioned 
portion of the Lower 700 MHz Band.
    71. The Commission also asks whether it should reduce the current 
power limit to, e.g., 20 kW, 10 kW, 5 kW ERP, or even to 1 kW ERP 
because of possible concerns that the Lower 700 MHz Band PFD limit does 
not adequately limit adjacent channel interference from 50 kW ERP 
transmissions or believe that the potential exists for co-channel 
interference from transmissions at that power level. Finally, 
commenters should address whether the Commission should, consistent 
with PCS and AWS, adopt a power limit of 2 kW ERP for rural areas only 
(without the need for a PFD limit) for base stations operating in the 
Lower 700 MHz Band.

[[Page 48517]]

    72. The Commission also seeks comment on whether any revisions to 
the Lower 700 MHz Band power limit should be uniformly applied across 
the entire band, i.e., including the existing licenses in Blocks C and 
D as well as the unauctioned Blocks A, B, and E. The Commission seeks 
comment on whether, and to what extent, applying a revised power limit 
to existing licenses in Blocks C and D to provide for uniform treatment 
across the band, will promote the public interest, convenience, and 
necessity, or the provisions of the Communications Act, as amended. The 
Commission also asks that commenters address whether any public 
interest benefits resulting from a change in the Lower 700 MHz Band 
power limit would outweigh any additional costs that may be associated 
with such a change.
    73. Finally, the Commission seeks comment on whether any additional 
modifications to its Lower 700 MHz Band power limit rules would be 
appropriate. For example, the Commission seeks comment on whether the 
current notification procedures that apply to high-powered Lower 700 
MHz Band operations will adequately protect adjacent band Lower 700 MHz 
Band licensees from interference.

G. 911/E911 and Hearing Aid-Compatible Wireless Handsets

    74. The Commission tentatively concludes that it should amend its 
part 20 rules to clarify that certain services offered using both 
unauctioned and previously auctioned spectrum in the 700 MHz Band and 
spectrum in other bands subject to part 27, such as AWS-1, should be 
subject to the 911/E911 and hearing aid-compatibility requirements.
    75. Sections 20.18(a) and 20.19(a), 47 CFR 20.18(a) and 20.19(a), 
currently specify that service providers within certain enumerated 
radio services (cellular, PCS, and Specialized Mobile Radio (SMR)) are 
subject to the 911/E911 and hearing aid-compatibility requirements. 
These rule sections have not been expanded to include licensees 
providing service in later authorized, additional wireless services 
such as in the 700 MHz Band, although many of the services permitted in 
the 700 MHz Band can be expected to be very similar to services 
presently subject to the 911/E911 and hearing aid-compatibility 
requirements.
    76. In 2003, the Commission broadened the scope of its wireless 
E911 rules, which applied only to licensees of particular services 
specified in the rules, so that the requirements extended to various 
other services and devices to the extent that they met certain 
specified criteria. Under that action, a service or device provider, 
whether or not it is a licensee, is to be subject to E911 rules based 
on whether: (1) It offers real-time, two-way voice service that is 
interconnected to the public switched network on either a stand-alone 
basis or packaged with other telecommunications services; (2) the 
customers using the service or device have a reasonable expectation of 
access to 911 and E911 services; (3) the service competes with 
traditional CMRS or wireline local exchange service; and (4) it is 
technically and operationally feasible for the service or device to 
support E911. The Commission also may use other factors in making its 
determination. Applying these criteria, the Commission determined in 
2003 to amend its rules to include additional service offerings within 
the scope of the E911 requirements, including telematics, and resold 
and prepaid mobile wireless services.
    77. Based on the past establishment of these criteria, the 
Commission tentatively concludes that services provided in the 700 MHz 
Band that meet these criteria should be subject to the 911/E911 
requirements. The Commission also tentatively concludes that services 
provided in the 700 MHz Band that meet these same criteria, with some 
minor adjustments respecting access to hearing aid-compatible phones, 
should be subject to the hearing aid-compatibility requirements. 
Further, the Commission tentatively concludes that the public safety 
and accessibility objectives of the 911/E911 and hearing aid 
compatibility rules would be served by application of these rules to 
services provided in the 700 MHz Band and meeting the above criteria. 
The Commission seeks comment on these tentative conclusions.
    78. The Commission expects as well that other services provided, at 
least in part, using spectrum subject to part 27, such as AWS-1, may 
meet the above criteria and thus also should be subject to 911/E911 and 
hearing aid-compatibility requirements. Accordingly, the Commission 
seeks comment on a tentative conclusion that services provided using 
bands subject to part 27, including AWS-1, that meet these criteria 
should also be subject to the 911/E911 and hearing aid-compatibility 
requirements. The Commission also seeks comment on what changes to the 
industry standard governing digital wireless handsets compatibility 
with hearing aids, ANSI C63.19-2006, would be necessary in order to 
establish measurement methods and parametric requirements for services 
provided in the 700 MHz Band. In addition, the Commission seeks comment 
on the time necessary to complete such changes to the standard.
    79. Finally, 47 CFR 20.18(a) and 20.19(a) presently limit the 
applicability of the 911/E911 and hearing aid compatibility 
requirements to specific radio services. As a result, the Commission 
would need to propose rule amendments to apply the 911/E911 and hearing 
aid-compatibility requirements each time a new service is authorized in 
the future that would meet the above criteria. Therefore, the 
Commission seeks comment on whether the Commission should amend 47 CFR 
20.18(a) and 20.19(a) to ensure that all similar wireless services that 
meet the four above criteria will be subject to the 911/E911 and 
hearing aid-compatibility requirements.

III. Procedural Matters

A. Regulatory Flexibility Act

    80. As required by the Regulatory Flexibility Act (RFA), 5 U.S.C. 
603, the Commission has prepared an Initial Regulatory Flexibility 
Analysis (IRFA) of the possible significant economic impact on small 
entities of the policies and rules addressed in this NPRM. The IRFA is 
set forth in the Appendix to the NPRM. Written public comments are 
requested on the IRFA. These comments must be filed in accordance with 
the same filing deadlines as comments filed in response to the NPRM, 
and must have a separate and distinct heading designating them as 
responses to the IRFA. Section 213 of the Consolidated Appropriations 
Act 2000 provides that the RFA shall not apply to the rules and 
competitive bidding procedures for frequencies in the 746-806 MHz Band. 
In particular, this exemption extends to the requirements imposed by 
Chapter 6 of Title 5, United States Code, Section 3 of the Small 
Business Act (15 U.S.C. 632) and Section 3507 and 3512 of Title 44, 
United States Code. Consolidated Appropriations Act 2000, Public Law 
106-113, 113 Stat. 2502, Appendix E, Sec. 213(a)(4)(A) through (B); see 
145 Cong. Rec. H12493-94 (Nov. 17, 1999); 47 U.S.C.A. 337 note at Sec. 
213(a)(4)(A) through (B). The Commission nevertheless believes that it 
would serve the public interest to analyze the possible significant 
economic impact of the proposed policy and rule changes in this band on 
small entities. Accordingly, the IRFA in the Appendix of the NPRM 
includes an analysis of (and seeks comment on) this impact in 
connection with all spectrum that falls within the scope of this NPRM, 
including spectrum in the 746-806 MHz Band.

[[Page 48518]]

B. Paperwork Reduction Act of 1995

    81. This NPRM contains proposed new or modified information 
collection requirements. The Commission, as part of its continuing 
effort to reduce paperwork burdens, invites the general public and the 
Office of Management and Budget (OMB) to comment on the information 
collection requirements contained in this NPRM, as required by the 
Paperwork Reduction Act of 1995, Public Law 104-13. Public and agency 
comments are due on or before September 20, 2006. Comments should 
address: (a) Whether the proposed collection of information is 
necessary for the proper performance of the functions of the 
Commission, including whether the information shall have practical 
utility; (b) the accuracy of the Commission's burden estimates; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (d) ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology. In 
addition, pursuant to the Small Business Paperwork Relief Act of 2002, 
Public Law 107-198 (see 44 U.S.C. 3506(c)(4)), the Commission seeks 
specific comment on how it might ``further reduce the information 
collection burden for small business concerns with fewer than 25 
employees.'' The Commission notes, however, that Section 213 of the 
Consolidated Appropriations Act 2000 provides that rules governing 
frequencies in the 746-806 MHz Band become effective immediately upon 
publication in the Federal Register without regard to certain sections 
of the Paperwork Reduction Act. Consolidated Appropriations Act 2000, 
Public Law 106-113, 113 Stat. 2502, Appendix E, Sec. 213(a)(4)(A) 
through (B); see 145 Cong. Rec. H12493-94 (Nov. 17, 1999); 47 U.S.C.A. 
337 note at Sec. 213(a)(4)(A) through (B). The Commission is therefore 
not inviting comment on any information collections that concern 
frequencies in the 746-806 MHz Band.

C. Other Procedural Matters

1. Ex Parte Presentations
    82. The rulemaking this NPRM initiates shall be treated as a 
``permit-but-disclose'' proceeding in accordance with the Commission's 
ex parte rules. Persons making oral ex parte presentations are reminded 
that memoranda summarizing the presentations must contain summaries of 
the substance of the presentations and not merely a listing of the 
subjects discussed. More than a one or two sentence description of the 
views and arguments presented generally is required. Other requirements 
pertaining to oral and written presentations are set forth in 47 CFR 
1.1206(b) of the Commission's rules.
2. Comment Filing Procedures
    83. Pursuant to 47 CFR 1.415 and 1.419 of the Commission's rules, 
interested parties may file comments on or before September 20, 2006 
and reply comments on or before October 20, 2006. All filings related 
to this NPRM should refer to WT Docket No. 06-150, CC Docket No. 94-
102, and WT Docket No. 01-309. Comments may be filed using: (1) The 
Commission's Electronic Comment Filing System (ECFS), (2) the Federal 
Government's eRulemaking Portal, or (3) by filing paper copies.
    84. Electronic Filers: Comments may be filed electronically using 
the Internet by accessing the ECFS: http://www.fcc.gov/cgb/ecfs/ or the 
Federal eRulemaking Portal: http://www.regulations.gov. Filers should 
follow the instructions provided on the Web site for submitting 
comments. ECFS filers must transmit one electronic copy of the comments 
for WT Docket No. 06-150, CC Docket No. 94-102, and WT Docket No. 01-
309. In completing the transmittal screen, filers should include their 
full name, U.S. Postal Service mailing address, and WT Docket No. 06-
150, CC Docket No. 94-102, and WT Docket No. 01-309. Parties may also 
submit an electronic comment by Internet e-mail. To get filing 
instructions, filers should send an e-mail to <a href="/cdn-cgi/l/email-protection#1174727762517772723f767e67"><span class="__cf_email__" data-cfemail="1471777267547277773a737b62">[email protected]</span></a> and include 
the following words in the body of the message, ``get form.'' A sample 
form and directions will be sent in response.
    85. Paper Filers: Parties who choose to file by paper must file an 
original and four copies of each filing. Filings can be sent by hand or 
messenger delivery, by commercial overnight courier, or by first-class 
or overnight U.S. Postal Service mail (although the Commission 
continues to experience delays in receiving U.S. Postal Service mail). 
All filings must be addressed to the Commission's Secretary, Marlene H. 
Dortch, Office of the Secretary, Federal Communications Commission, 445 
12th Street, SW., Washington, DC 20554. Parties who choose to file by 
paper should also send a copy of their comments to: Michael Rowan, 
Special Counsel, Spectrum & Competition Policy Division, Wireless 
Telecommunications Bureau, Federal Communications Commission, 445 12th 
Street, SW., Portals I, Room 6315, Washington, DC 20554; and Bill 
Stafford, Special Counsel, Spectrum & Competition Policy Division, 
Wireless Telecommunications Bureau, Federal Communications Commission, 
445 12th Street, SW., Portals I, Room 6221, Washington, DC 20554. The 
Commission's contractor will receive hand-delivered or messenger-
delivered paper filings for the Commission's Secretary at 236 
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing 
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be 
held together with rubber bands or fasteners. Any envelopes must be 
disposed of before entering the building. Commercial overnight mail 
(other than U.S. Postal Service Express Mail and Priority Mail) must be 
sent to 9300 East Hampton Drive, Capitol Heights, MD 20743. U.S. Postal 
Service first-class, Express, and Priority mail should be addressed to 
445 12th Street, SW., Washington DC 20554.
    86. Parties shall serve one copy with the Commission's copy 
contractor, Best Copy and Printing, Inc. (BCPI), Portals II, Room CY-
B402, 445 12th Street, SW., Washington, DC 20554, (202) 488-5300, or 
via e-mail to <a href="/cdn-cgi/l/email-protection#83e5e0e0c3e1e0f3eaf4e6e1ade0ecee"><span class="__cf_email__" data-cfemail="43252020032120332a3426216d202c2e">[email protected]</span></a>.
    87. Documents in WT Docket No. 06-150, CC Docket No. 94-102, and WT 
Docket No. 01-309 will be available for public inspection and copying 
during business hours at the FCC Reference Information Center, Portals 
II, Room CY-A257, 445 12th Street, SW., Washington, DC 20554. The 
documents may also be purchased from BCPI, telephone (202) 488-5300, 
facsimile (202) 488-5563, TTY (202) 488-5562, e-mail <a href="/cdn-cgi/l/email-protection#e4828787a48687948d938186ca878b89"><span class="__cf_email__" data-cfemail="0167626241636271687664632f626e6c">[email protected]</span></a>.
3. Accessible Formats
    88. To request materials in accessible formats for people with 
disabilities (Braille, large print, electronic files, audio format), 
send an e-mail to <a href="/cdn-cgi/l/email-protection#367075750306027650555518515940"><span class="__cf_email__" data-cfemail="6e282d2d5b5e5a2e080d0d40090118">[email protected]</span></a> or call the Consumer & Governmental 
Affairs Bureau at 202-418-0530 (voice), 202-418-0432 (TTY). Contact the 
Commission to request reasonable accommodations for filing comments 
(accessible format documents, sign language interpreters, CARTS, etc.) 
by e-mail: <a href="/cdn-cgi/l/email-protection#cc8a8f8ff9fcf88caaafafe2aba3ba"><span class="__cf_email__" data-cfemail="b0f6f3f3858084f0d6d3d39ed7dfc6">[email protected]</span></a>; phone: 202-418-0530 (voice), 202-418-0432 
(TTY).

IV. Initial Regulatory Flexibility Analysis

    89. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), the Commission has prepared this Initial Regulatory 
Flexibility Analysis (IRFA) of the possible significant economic impact 
on a substantial number of small entities by the policies and rules 
considered in this NPRM. Written public comments are

[[Page 48519]]

requested on this IRFA. Comments must be identified as responses to the 
IRFA and must be filed by the deadlines for comments on the NPRM. The 
Commission will send a copy of this NPRM, including this IRFA, to the 
Chief Counsel for Advocacy of the Small Business Administration (SBA). 
In addition, this NPRM and IRFA (or summaries thereof) will be 
published in the Federal Register.
    90. Section 213 of the Consolidated Appropriations Act 2000 
provides that the RFA shall not apply to the rules and competitive 
bidding procedures for frequencies in the 746-806 MHz Band. In 
particular, this exemption extends to the requirements imposed by 
Chapter 6 of Title 5, United States Code, Section 3 of the Small 
Business Act (15 U.S.C. 632) and Section 3507 and 3512 of Title 44, 
United States Code. Consolidated Appropriations Act 2000, Public Law 
106-113, 113 Stat. 2502, Appendix E, Sec. 213(a)(4)(A) through (B); see 
145 Cong. Rec. H12493-94 (Nov. 17, 1999); 47 U.S.C.A. 337 note at Sec. 
213(a)(4)(A) through (B). The Commission nevertheless believes that it 
would serve the public interest to analyze the possible significant 
economic impact of the proposed policy and rule changes in this band on 
small entities. Accordingly, this IRFA contains an analysis of this 
impact in connection with all spectrum that falls within the scope of 
this NPRM, including spectrum in the 746-806 MHz Band.

A. Need for, and Objectives of, the Proposed Rules

    91. In the NPRM, the Commission seeks comment on possible changes 
to the rules governing wireless licenses in the 700 MHz Band, spectrum 
that does not include the Upper 700 MHz Guard Bands nor the portions of 
the Upper 700 MHz Band that have been allocated for public safety 
services. These spectrum bands in the 698-806 MHz band have been 
allocated to new fixed, mobile, and broadcast services. Under the DTV 
Act, the Commission is required to commence an auction of previously 
unauctioned spectrum in the 700 MHz Band no later than January 28, 
2008. In response to the changes made by the DTV Act affecting the 700 
MHz Band, and because more than four years have passed since the 
Commission previously established band plans and service rules for this 
spectrum, the NPRM revisits some of the Commission's earlier decisions 
regarding the service rules for licenses in this band.
    92. Specifically, the NPRM seeks comment on whether there is a need 
to revise the size of the geographic service areas for the remaining 
unauctioned spectrum in the band, including the possibility of using 
smaller areas, such as the 734 CMAs composed of MSAs and RSAs. The NPRM 
then seeks comment on whether to modify the size of certain 700 MHz 
Band spectrum blocks, including the possibility of dividing Block D in 
the Upper 700 MHz Band into smaller blocks. The NPRM also requests 
input on whether to add or revise performance requirements for 
unauctioned spectrum, including such alternatives as specific 
construction benchmarks. In addition, the NPRM seeks comment on options 
that may facilitate access to spectrum in the secondary market for all 
licenses in the 700 MHz Band, as well as on policies the Commission 
could implement to promote service to tribal lands.
    93. The NPRM then seeks comment on several additional issues 
relating to both auctioned and unauctioned licenses in the 700 MHz 
Band. For these licenses, comment is sought on whether to clarify or 
modify the rules and criteria for license renewal. The NPRM also seeks 
comment on whether to revise and possibly extend the term of licenses, 
as well as whether to modify the existing power limits in both the 
Upper 700 MHz and the Lower 700 MHz Bands. In light of the importance 
of public safety operations in the 700 MHz Band, the Commission states 
that it would take no action that would cause harmful interference to 
public safety licensees in the band.
    94. Finally, the NPRM requests comment on the tentative conclusion 
that services provided by licensees in the 700 MHz Band, and in other 
bands subject to part 27 of the rules, should be subject to E911 and 
hearing aid-compatibility requirements to the same extent that such 
services would be covered if provided in other bands. It then seeks 
comment on how to modify Commission rules to ensure that they include 
all similar wireless services, referred to as Wireless Radio Services 
(WRS).

B. Legal Basis

    95. The potential actions about which comment is sought in this 
NPRM would be authorized pursuant to the authority contained in 
Sections 1, 2, 4(i), 5(c), 7, 10, 201, 202, 208, 214, 222(d)(4)(A)-(C), 
222(f), 222(g), 222(h)(1)(A), 222(h)(4)-(5), 251(e)(3), 301, 302, 303, 
307, 308, 309, 310, 311, 314, 316, 319, 324, 332, 333, 336, 337, 614, 
615, and 710 of the Communications Act of 1934, as amended, 47 U.S.C. 
Sec. Sec.  151, 152, 154(i), 155(c), 157, 160, 201, 202, 208, 214, 
222(d)(4)(A)-(C), 222(f), 222(g), 222(h)(1)(A), 222(h)(4)-(5), 
251(e)(3), 301, 302, 303, 307, 308, 309, 310, 311, 314, 316, 319, 324, 
332, 333, 336, 337, 534, 535, and 610.

C. Description and Estimate of the Number of Small Entities To Which 
the Rules Will Apply

    96. 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.'' 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 which: (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).
    97. This NPRM could result in rule changes that, if adopted, would 
create new opportunities and obligations for Commission wireless 
licensees. Under the NPRM, any of the changes to the Commission's rules 
which may occur as a result of the NPRM would be limited to Upper 700 
MHz and Lower 700 MHz Band licensees in the 698-746, 747-762, and 777-
792 MHz spectrum bands, with one exception. In the NPRM, the Commission 
seeks comment on the tentative conclusion that services provided in the 
700 MHz Band, and in other bands subject to part 27, should be subject 
to requirements concerning 911/E911 and hearing aid-compatible handsets 
to the extent they meet certain criteria. The NPRM then seeks comment 
on how to modify Commission rules to ensure that they include all 
similar WRS. Thus, because such revisions potentially could affect 
small entity licensees holding licenses in many wireless services (and 
not just bands which are subject to part 27 of the Commission's rules), 
this IRFA includes estimates of the number of small entities in each of 
the categories of WRS identified below.
    98. Since this rulemaking proceeding applies to multiple services, 
this IRFA analyzes the number of small entities affected on a service-
by-service basis. When identifying small entities that could be 
affected by the Commission's new rules, this IRFA provides information 
describing auctions results, including the number of small entities 
that were winning bidders. However, the number of winning bidders that 
qualify as small businesses at the close of an auction does not 
necessarily reflect the total number of small entities

[[Page 48520]]

currently in a particular service. The Commission does not generally 
require that licensees later provide business size information, except 
in the context of an assignment or transfer of control application 
where unjust enrichment issues are implicated. Consequently, to assist 
the Commission in analyzing the total number of potentially affected 
small entities, the Commission requests commenters to estimate the 
number of small entities that may be affected by any rule changes that 
might result from this NPRM.
1. Part 27 Miscellaneous Wireless Communications Services (MWCS)
    99. Wireless Communications Services. This service can be used for 
fixed, mobile, radiolocation, and digital audio broadcasting satellite 
uses in the 2305-2320 MHz and 2345-2360 MHz bands. The Commission 
defined ``small business'' for the wireless communications services 
(WCS) auction as an entity with average gross revenues of $40 million 
for each of the three preceding years, and a ``very small business'' as 
an entity with average gross revenues of $15 million for each of the 
three preceding years. The SBA has approved these definitions. The 
Commission auctioned geographic area licenses in the WCS service. In 
the auction, which commenced on April 15, 1997 and closed on April 25, 
1997, there were seven bidders that won 31 licenses that qualified as 
very small business entities, and one bidder that won one license that 
qualified as a small business entity.
    100. 700 MHz Guard Band Licenses. In the 700 MHz Guard Band Order, 
the Commission adopted size standards for ``small businesses'' and 
``very small businesses'' for purposes of determining their eligibility 
for special provisions such as bidding credits and installment 
payments. A small business in this service is an entity that, together 
with its affiliates and controlling principals, has average gross 
revenues not exceeding $40 million for the preceding three years. 
Additionally, a ``very small business'' is an entity that, together 
with its affiliates and controlling principals, has average gross 
revenues that are not more than $15 million for the preceding three 
years. SBA approval of these definitions is not required. An auction of 
52 Major Economic Area (MEA) licenses commenced on September 6, 2000, 
and closed on September 21, 2000. Of the 104 licenses auctioned, 96 
licenses were sold to nine bidders. Five of these bidders were small 
businesses that won a total of 26 licenses. A second auction of 700 MHz 
Guard Band licenses commenced on February 13, 2001, and closed on 
February 21, 2001. All eight of the licenses auctioned were sold to 
three bidders. One of these bidders was a small business that won a 
total of two licenses.
    101. Upper 700 MHz Band Licenses. The Commission released a Report 
and Order authorizing service in the Upper 700 MHz band. An auction for 
these licenses, previously scheduled for January 13, 2003, was 
postponed.
    102. Lower 700 MHz Band Licenses. The Commission adopted criteria 
for defining three groups of small businesses for purposes of 
determining their eligibility for special provisions such as bidding 
credits. The Commission has defined a small business as an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues not exceeding $40 million for the preceding three years. 
A very small business is defined as an entity that, together with its 
affiliates and controlling principals, has average gross revenues that 
are not more than $15 million for the preceding three years. 
Additionally, the Lower 700 MHz Band has a third category of small 
business status that may be claimed for Metropolitan/Rural Service Area 
(MSA/RSA) licenses. The third category is entrepreneur, which is 
defined as an entity that, together with its affiliates and controlling 
principals, has average gross revenues that are not more than $3 
million for the preceding three years. The SBA has approved these small 
size standards. An auction of 740 licenses (one license in each of the 
734 MSAs/RSAs and one license in each of the six Economic Area 
Groupings (EAGs)) commenced on August 27, 2002, and closed on September 
18, 2002. Of the 740 licenses available for auction, 484 licenses were 
sold to 102 winning bidders. Seventy-two of the winning bidders claimed 
small business, very small business or entrepreneur status and won a 
total of 329 licenses. A second auction commenced on May 28, 2003, and 
closed on June 13, 2003, and included 256 licenses: 5 EAG licenses and 
476 CMA licenses. Seventeen winning bidders claimed small or very small 
business status and won sixty licenses, and nine winning bidders 
claimed entrepreneur status and won 154 licenses.
    103. Government Transfer Bands. The Commission adopted small 
business size standards for the unpaired 1390-1392 MHz, 1670-1675 MHz, 
and the paired 1392-1395 MHz and 1432-1435 MHz bands. Specifically, 
with respect to these bands, the Commission defined an entity with 
average annual gross revenues for the three preceding years not 
exceeding $40 million as a ``small business,'' and an entity with 
average annual gross revenues for the three preceding years not 
exceeding $15 million as a ``very small business.'' Correspondingly, 
the Commission adopted a bidding credit of 15 percent for ``small 
businesses'' and a bidding credit of 25 percent for ``very small 
businesses.'' This bidding credit structure was found to have been 
consistent with the Commission's schedule of bidding credits, which may 
be found at Section 1.2110(f)(2) of the Commission's rules. The 
Commission found that these two definitions will provide a variety of 
businesses seeking to provide a variety of services with opportunities 
to participate in the auction of licenses for this spectrum and will 
afford such licensees, who may have varying capital costs, substantial 
flexibility for the provision of services. The Commission noted that it 
had long recognized that bidding preferences for qualifying bidders 
provides such bidders with an opportunity to compete successfully 
against large, well-financed entities. The Commission also noted that 
it had found that the use of tiered or graduated small business 
definitions is useful in furthering its mandate under Section 309(j) to 
promote opportunities for and disseminate licenses to a wide variety of 
applicants. An auction for one license in the 1670-1674 MHz band 
commenced on April 30, 2003 and closed the same day. One license was 
awarded. The winning bidder was not a small entity.
    104. Advanced Wireless Services. In the AWS-1 Report and Order, the 
Commission adopted rules that affect applicants who wish to provide 
service in the 1710-1755 MHz and 2110-2155 MHz bands. The Commission 
did not know precisely the type of service that a licensee in these 
bands might seek to provide. Nonetheless, the Commission anticipated 
that the services that will be deployed in these bands may have capital 
requirements comparable to those in the broadband Personal 
Communications Service (PCS), and that the licensees in these bands 
will be presented with issues and costs similar to those presented to 
broadband PCS licensees. Further, at the time the broadband PCS service 
was established, it was similarly anticipated that it would facilitate 
the introduction of a new generation of service. Therefore, the AWS-1 
Report and Order adopts the same small business size standards that the 
Commission adopted for the broadband PCS service. In particular, the 
AWS-1 Report and Order defines a ``small business'' as an entity with 
average annual gross revenues for the

[[Page 48521]]

preceding three years not exceeding $40 million, and a ``very small 
business'' as an entity with average annual gross revenues for the 
preceding three years not exceeding $15 million. The AWS-1 Report and 
Order also provides small businesses with a bidding credit of 15 
percent and very small businesses with a bidding credit of 25 percent.
    105. Broadband Radio Service (formerly Multipoint Distribution 
Service) and Educational Broadband Service (formerly Instructional 
Television Fixed Service). Multichannel Multipoint Distribution Service 
(MMDS) systems, often referred to as ``wireless cable,'' transmit video 
programming to subscribers using the microwave frequencies of the 
Multipoint Distribution Service (MDS) and Instructional Television 
Fixed Service (ITFS). In its recently issued BRS/EBS Report and Order 
in WT Docket No. 03-66, the Commission comprehensively reviewed its 
policies and rules relating to the ITFS and MDS services, and replaced 
the MDS with the Broadband Radio Service and ITFS with the Educational 
Broadband Service in a new band plan at 2495-2690 MHz. In connection 
with the 1996 MDS auction, the Commission defined ``small business'' as 
an entity that, together with its affiliates, has average gross annual 
revenues that are not more than $40 million for the preceding three 
calendar years. The SBA has approved of this standard. The MDS auction 
resulted in 67 successful bidders obtaining licensing opportunities for 
493 Basic Trading Areas (BTAs). Of the 67 auction winners, 61 claimed 
status as a small business. At this time, the Commission estimates that 
of the 61 small business MDS auction winners, 48 remain small business 
licensees. In addition to the 48 small businesses that hold BTA 
authorizations, there are approximately 392 incumbent MDS licensees 
that have gross revenues that are not more than $40 million and are 
thus considered small entities.
    106. In addition, the SBA has developed a small business size 
standard for Cable and Other Program Distribution, which is: All such 
firms having $13.5 million or less in annual receipts. According to 
Census Bureau data for 2002, there were a total of 1,191 firms in this 
category that operated for the entire year. Of this total, 1,087 firms 
had annual receipts of under $10 million, and 43 firms had receipts of 
$10 million or more but less than $25 million. Thus, under this size 
standard, the majority of firms can be considered small.
2. Additional Wireless Radio Services (WRS)
    107. Cellular Licensees. The SBA has developed a small business 
size standard for small businesses in the category ``Cellular and Other 
Wireless Telecommunications.'' Under that SBA category, a business is 
small if it has 1,500 or fewer employees. For the census category of 
``Cellular and Other Wireless Telecommunications,'' Census Bureau data 
for 2002 show that there were 1,397 firms in this category that 
operated for the entire year. Of this total, 1,378 firms had employment 
of 999 or fewer employees, and 19 firms had employment of 1,000 
employees or more. Thus, under this category and size standard, the 
majority of firms can be considered small.
    108. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service 
has both Phase I and Phase II licenses. Phase I licensing was conducted 
by lotteries in 1992 and 1993. There are approximately 1,515 such non 
nationwide licensees and four nationwide licensees currently authorized 
to operate in the 220 MHz Band. The Commission has not developed a 
definition of small entities specifically applicable to such incumbent 
220 MHz Phase I licensees. To estimate the number of such licensees 
that are small businesses, the Commission applies the small business 
size standard under the SBA rules applicable to ``Cellular and Other 
Wireless Telecommunications'' companies. This category provides that a 
small business is a wireless company employing no more than 1,500 
persons. For the census category of ``Cellular and Other Wireless 
Telecommunications,'' Census Bureau data for 2002 show that there were 
1,397 firms in this category that operated for the entire year. Of this 
total, 1,378 firms had employment of 999 or fewer employees, and 19 
firms had employment of 1,000 employees or more. Thus, under this 
category and size standard, the majority of firms can be considered 
small.
    109. 220 MHz Radio Service--Phase II Licensees. The 220 MHz service 
has both Phase I and Phase II licenses. The Phase II 220 MHz service is 
subject to spectrum auctions. In the 220 MHz Third Report and Order, 
the Commission adopted a small business size standard for defining 
``small'' and ``very small'' businesses for purposes of determining 
their eligibility for special provisions such as bidding credits and 
installment payments. This small business standard indicates that a 
``small business'' is an entity that, together with its affiliates and 
controlling principals, has average gross revenues not exceeding $15 
million for the preceding three years. A ``very small business'' is 
defined as an entity that, together with its affiliates and controlling 
principals, has average gross revenues that do not exceed $3 million 
for the preceding three years. The SBA has approved these small size 
standards. Auctions of Phase II licenses commenced on September 15, 
1998, and closed on October 22, 1998. In the first auction, 908 
licenses were auctioned in three different sized geographic areas: 
three nationwide licenses, 30 Regional Economic Area Group (EAG) 
Licenses, and 875 Economic Area (EA) Licenses. Of the 908 licenses 
auctioned, 693 were sold. Thirty-nine small businesses won 373 licenses 
in the first 220 MHz auction. A second auction included 225 licenses: 
216 EA licenses and 9 EAG licenses. Fourteen companies claiming small 
business status won 158 licenses. A third auction included four 
licenses: 2 BEA licenses and 2 EAG licenses in the 220 MHz Service. No 
small or very small business won any of these licenses.
    110. Paging. In the Paging Second Report and Order, the Commission 
adopted a size standard for ``small businesses'' for purposes of 
determining their eligibility for special provisions such as bidding 
credits and installment payments. A small business is an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues not exceeding $15 million for the preceding three years. 
The SBA has approved this definition. An auction of Metropolitan 
Economic Area (MEA) licenses commenced on February 24, 2000, and closed 
on March 2, 2000. Of the 2,499 licenses auctioned, 985 were sold. 
Fifty-seven companies claiming small business status won 440 licenses. 
An auction of MEA and Economic Area (EA) licenses commenced on October 
30, 2001, and closed on December 5, 2001. Of the 15,514 licenses 
auctioned, 5,323 were sold. 132 companies claiming small business 
status purchased 3,724 licenses. A third auction, consisting of 8,874 
licenses in each of 175 EAs and 1,328 licenses in all but three of the 
51 MEAs commenced on May 13, 2003, and closed on May 28, 2003. Seventy-
seven bidders claiming small or very small business status won 2,093 
licenses. Currently, there are approximately 24,000 Private Paging 
site-specific licenses and 74,000 Common Carrier Paging licenses. 
According to the Commission's Trends in Telephone Service, 375 such 
carriers reported that they were engaged in the provision of either 
paging or ``messaging service.'' Of

[[Page 48522]]

these, the Commission estimates that 370 are small, under the SBA-
approved small business size standard. The Commission estimates that 
the majority of private and common carrier paging providers would 
qualify as small entities under the SBA definition.
    111. Broadband Personal Communications Service. The broadband 
Personal Communications Service (PCS) spectrum is divided into six 
frequency blocks designated A through F, and the Commission has held 
auctions for each block. The Commission has created a small business 
size standard for Blocks C and F as an entity that has average gross 
revenues of less than $40 million in the three previous calendar years. 
For Block F, an additional small business size standard for ``very 
small business'' was added and is defined as an entity that, together 
with its affiliates, has average gross revenues of not more than $15 
million for the preceding three calendar years. These small business 
size standards, in the context of broadband PCS auctions, have been 
approved by the SBA. No small businesses within the SBA-approved small 
business size standards bid successfully for licenses in Blocks A and 
B. There were 90 winning bidders that qualified as small entities in 
the Block C auctions. A total of 93 ``small'' and ``very small'' 
business bidders won approximately 40 percent of the 1,479 licenses for 
Blocks D, E, and F. On March 23, 1999, the Commission reauctioned 155 
C, D, E, and F Block licenses; there were 113 small business winning 
bidders. On January 26, 2001, the Commission completed the auction of 
422 C and F PCS licenses in Auction 35. Of the 35 winning bidders in 
this auction, 29 qualified as ``small'' or ``very small'' businesses. 
Subsequent events concerning Auction 35, including judicial and agency 
determinations, resulted in a total of 163 C and F Block licenses being 
available for grant.
    112. Narrowband Personal Communications Service. The Commission 
held an auction for Narrowband Personal Communications Service (PCS) 
licenses that commenced on July 25, 1994, and closed on July 29, 1994. 
A second commenced on October 26, 1994 and closed on November 8, 1994. 
For purposes of the first two Narrowband PCS auctions, ``small 
businesses'' were entities with average gross revenues for the prior 
three calendar years of $40 million or less. Through these auctions, 
the Commission awarded a total of forty-one licenses, 11 of which were 
obtained by four small businesses. To ensure meaningful participation 
by small business entities in future auctions, the Commission adopted a 
two-tiered small business size standard in the Narrowband PCS Second 
Report and Order. 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 small business 
size standards. A third auction commenced on October 3, 2001 and closed 
on October 16, 2001. Here, five bidders won 317 (MTA and nationwide) 
licenses. Three of these claimed status as a small or very small entity 
and won 311 licenses.
    113. Specialized Mobile Radio. The Commission awards ``small 
entity'' bidding credits in auctions for Specialized Mobile Radio (SMR) 
geographic area licenses in the 800 MHz and 900 MHz bands to firms that 
had revenues of no more than $15 million in each of the three previous 
calendar years. The Commission awards ``very small entity'' bidding 
credits to firms that had revenues of no more than $3 million in each 
of the three previous calendar years. The SBA has approved these small 
business size standards for the 900 MHz Service. The Commission has 
held auctions for geographic area licenses in the 800 MHz and 900 MHz 
bands. The 900 MHz SMR auction began on December 5, 1995, and closed on 
April 15, 1996. Sixty bidders claiming that they qualified as small 
businesses under the $15 million size standard won 263 geographic area 
licenses in the 900 MHz SMR band. The 800 MHz SMR auction for the upper 
200 channels began on October 28, 1997, and was completed on December 
8, 1997. Ten bidders claiming that they qualified as small businesses 
under the $15 million size standard won 38 geographic area licenses for 
the upper 200 channels in the 800 MHz SMR band. A second auction for 
the 800 MHz band was held on January 10, 2002 and closed on January 17, 
2002 and included 23 BEA licenses. One bidder claiming small business 
status won five licenses.
    114. The auction of the 1,050 800 MHz SMR geographic area licenses 
for the General Category channels began on August 16, 2000, and was 
completed on September 1, 2000. Eleven bidders won 108 geographic area 
licenses for the General Category channels in the 800 MHz SMR band 
qualified as small businesses under the $15 million size standard. In 
an auction completed on December 5, 2000, a total of 2,800 Economic 
Area licenses in the lower 80 channels of the 800 MHz SMR service were 
sold. Of the 22 winning bidders, 19 claimed ``small business'' status 
and won 129 licenses. Thus, combining all three auctions, 40 winning 
bidders for geographic licenses in the 800 MHz SMR band claimed status 
as small business.
    115. In addition, there are numerous incumbent site-by-site SMR 
licensees and licensees with extended implementation authorizations in 
the 800 and 900 MHz bands. The Commission does not know how many firms 
provide 800 MHz or 900 MHz geographic area SMR pursuant to extended 
implementation authorizations, nor how many of these providers have 
annual revenues of no more than $15 million. One firm has over $15 
million in revenues. The Commission assumes, for purposes of this 
analysis, that all of the remaining existing extended implementation 
authorizations are held by small entities, as that small business size 
standard is established by the SBA.
    116. Private Land Mobile Radio. Private Land Mobile Radio (PLMR) 
systems serve an essential role in a range of industrial, business, 
land transportation, and public safety activities. These radios are 
used by companies of all sizes operating in all U.S. business 
categories, and are often used in support of the licensee's primary 
(non-telecommunications) business operations. For the purpose of 
determining whether a licensee of a PLMR system is a small business as 
defined by the SBA, the Commission could use the definition for 
``Cellular and Other Wireless Telecommunications.'' This definition 
provides that a small entity is any such entity employing no more than 
1,500 persons. The Commission does not require PLMR licensees to 
disclose information about number of employees, so the Commission does 
not have information that could be used to determine how many PLMR 
licensees constitute small entities under this definition. Moreover, 
because PMLR licensees generally are not in the business of providing 
cellular services but instead use the licensed facilities in support of 
other business activities, the Commission notes that the current Census 
numbers are likely overbroad. The Commission also notes that, for some 
such licensees, it might be appropriate to assess PLMR licensees under 
the standards applied to the particular industry subsector to which the 
licensee belongs.
    117. Fixed Microwave Services. Fixed microwave services include 
common

[[Page 48523]]

carrier, private-operational fixed, and broadcast auxiliary radio 
services. Currently, there are approximately 22,015 common carrier 
fixed licensees and 61,670 private operational-fixed licensees and 
broadcast auxiliary radio licensees in the microwave services. The 
Commission has not yet defined a small business with respect to 
microwave services. For purposes of this analysis, the Commission will 
use the SBA's definition applicable to ``Cellular and Other Wireless 
Telecommunications'' companies--that is, an entity with no more than 
1,500 persons. The Commission does not have data specifying the number 
of these licensees that have more than 1,500 employees, and thus is 
unable at this time to estimate with greater precision the number of 
fixed microwave service licensees that would qualify as small business 
concerns under the SBA's small business size standard. Consequently, 
the Commission estimates that there are 22,015 or fewer small common 
carrier fixed licensees and 61,670 or fewer small private operational-
fixed licensees and small broadcast auxiliary radio licensees in the 
microwave services that may be affected by the rules and policies 
adopted as a result of the NPRM. The Commission notes, however, that 
the common carrier microwave fixed licensee category includes some 
large entities.
    118. 39 GHz Service. The Commission defines ``small entity'' for 39 
GHz licenses as an entity that has average gross revenues of less than 
$40 million in the three previous calendar years. ``Very small 
business'' is defined as an entity that, together with its affiliates, 
has average gross revenues of not more than $15 million for the 
preceding three calendar years. The SBA has approved these definitions. 
The auction of the 2,173 39 GHz licenses began on April 12, 2000, and 
closed on May 8, 2000. The 18 bidders who claimed small business status 
won 849 licenses.
    119. Local Multipoint Distribution Service. An auction of the 986 
Local Multipoint Distribution Service (LMDS) licenses began on February 
18, 1998, and closed on March 25, 1998. The Commission defined ``small 
entity'' for LMDS licenses as an entity that has average gross revenues 
of less than $40 million in the three previous calendar years. An 
additional classification for ``very small business'' was added and is 
defined as an entity that, together with its affiliates, has average 
gross revenues of not more than $15 million for the preceding three 
calendar years. These regulations defining ``small entity'' in the 
context of LMDS auctions have been approved by the SBA. There were 93 
winning bidders that qualified as small entities in the LMDS auctions. 
A total of 93 small and very small business bidders won approximately 
277 A Block licenses and 387 B Block licenses. On March 27, 1999, the 
Commission re-auctioned 161 licenses; there were 32 small and very 
small business winning bidders that won 119 licenses.
    120. 218-219 MHz Service. The first auction of 218-219 MHz 
(previously referred to as the Interactive and Video Data Service or 
IVDS) spectrum resulted in 178 entities winning licenses for 594 
Metropolitan Statistical Areas (MSAs). Of the 594 licenses, 567 were 
won by 167 entities qualifying as a small business. For that auction, 
the Commission defined a small business as an entity that, together 
with its affiliates, has no more than a $6 million net worth and, after 
federal income taxes (excluding any carry over losses), has no more 
than $2 million in annual profits each year for the previous two years. 
In the 218-219 MHz Report and Order and Memorandum Opinion and Order, 
the Commission defined a small business as an entity that, together 
with its affiliates and persons or entities that hold interests in such 
an entity and their affiliates, has average annual gross revenues not 
exceeding $15 million for the preceding three years. A very small 
business is defined as an entity that, together with its affiliates and 
persons or entities that hold interests in such an entity and its 
affiliates, has average annual gross revenues not exceeding $3 million 
for the preceding three years. The SBA has approved of these 
definitions. At this time, the Commission cannot estimate the number of 
licenses that will be won by entities qualifying as small or very small 
businesses under its rules in future auctions of 218-219 MHz spectrum. 
Given the success of small businesses in the previous auction, and the 
prevalence of small businesses in the subscription television services 
and message communications industries, the Commission assumes for 
purposes of this analysis that in future auctions, many, and perhaps 
all, of the licenses may be awarded to small businesses.
    121. Location and Monitoring Service. Multilateration Location and 
Monitoring Service (LMS) systems use non-voice radio techniques to 
determine the location and status of mobile radio units. For purposes 
of auctioning LMS licenses, the Commission has defined ``small 
business'' as an entity that, together with controlling interests and 
affiliates, has average annual gross revenues for the preceding three 
years not exceeding $15 million. A ``very small business'' is defined 
as an entity that, together with controlling interests and affiliates, 
has average annual gross revenues for the preceding three years not 
exceeding $3 million. These definitions have been approved by the SBA. 
An auction for multilateration LMS licenses commenced on February 23, 
1999, and closed on March 5, 1999. Of the 528 licenses auctioned, 289 
licenses were sold to four small businesses. The Commission cannot 
accurately predict the number of remaining licenses that could be 
awarded to small entities in future LMS auctions. In addition, there 
are numerous site-by-site non-multilateration licensees, and the 
Commission does not know how many of these providers have annual 
revenues of no more than $15 million. The Commission assumes, for 
purposes of this analysis, that all of these licenses are held by small 
entities, as that small business size standard is established by the 
SBA.
    122. Rural Radiotelephone Service. The Commission uses the SBA 
definition applicable to cellular and other wireless telecommunication 
companies, i.e., an entity employing no more than 1,500 persons. There 
are approximately 1,000 licensees in the Rural Radiotelephone Service, 
and the Commission estimates that there are 1,000 or fewer small entity 
licensees in the Rural Radiotelephone Service that may be affected by 
the rules and policies adopted as a result of the NPRM.
    123. Air-Ground Radiotelephone Service. The Commission uses the SBA 
definition applicable to cellular and other wireless telecommunication 
companies, i.e., an entity employing no more than 1,500 persons. There 
are approximately 100 licensees in the Air-Ground Radiotelephone 
Service, and the Commission estimates that almost all of them qualify 
as small entities under the SBA definition.
    124. Offshore Radiotelephone Service. This service operates on 
several ultra high frequency (UHF) TV broadcast channels that are not 
used for TV broadcasting in the coastal area of the states bordering 
the Gulf of Mexico. At present, there are approximately 55 licensees in 
this service. The Commission uses the SBA definition applicable to 
cellular and other wireless telecommunication companies, i.e., an 
entity employing no more than 1,500 persons. The Commission is unable 
at this time to estimate the number of licensees that would qualify as 
small entities under the SBA definition. The Commission assumes, for 
purposes of this analysis, that all of the 55 licensees

[[Page 48524]]

are small entities, as that term is defined by the SBA.
    125. Multiple Address Systems. Entities using Multiple Address 
Systems (MAS) spectrum, in general, fall into two categories: (1) Those 
using the spectrum for profit-based uses, and (2) those using the 
spectrum for private internal uses. With respect to the first category, 
the Commission defines ``small entity'' for MAS licenses as an entity 
that has average gross revenues of less than $15 million in the three 
previous calendar years. ``Very small business'' is defined as an 
entity that, together with its affiliates, has average gross revenues 
of not more than $3 million for the preceding three calendar years. The 
SBA has approved of these definitions. The majority of these entities 
will most likely be licensed in bands where the Commission has 
implemented a geographic area licensing approach that would require the 
use of competitive bidding procedures to resolve mutually exclusive 
applications. The Commission's licensing database indicates that, as of 
January 20, 1999, there were a total of 8,670 MAS station 
authorizations. Of these, 260 authorizations were associated with 
common carrier service. In addition, an auction for 5,104 MAS licenses 
in 176 EAs began November 14, 2001, and closed on November 27, 2001. 
Seven winning bidders claimed status as small or very small businesses 
and won 611 licenses.
    126. With respect to the second category, which consists of 
entities that use, or seek to use, MAS spectrum to accommodate their 
own internal communications needs, MAS serves an essential role in a 
range of industrial, safety, business, and land transportation 
activities. MAS radios are used by companies of all sizes, operating in 
virtually all U.S. business categories, and by all types of public 
safety entities. For the majority of private internal users, the 
definitions developed by the SBA would be more appropriate. The 
applicable definition of small entity in this instance appears to be 
the ``Cellular and Other Wireless Telecommunications'' definition under 
the SBA rules. This definition provides that a small entity is any 
entity employing no more than 1,500 persons. The Commission's licensing 
database indicates that, as of January 20, 1999, of the 8,670 total MAS 
station authorizations, 8,410 authorizations were for private radio 
service, and of these, 1,433 were for private land mobile radio 
service.
    127. Incumbent 24 GHz Licensees. The rules at issue could affect 
incumbent licensees who were relocated to the 24 GHz band from the 18 
GHz band, and applicants who wish to provide services in the 24 GHz 
band. The Commission did not develop a definition of small entities 
applicable to existing licensees in the 24 GHz band. Therefore, the 
applicable definition of small entity is the definition under the SBA 
rules for ``Cellular and Other Wireless Telecommunications.'' This 
definition provides that a small entity is any entity employing no more 
than 1,500 persons. The Commission believes that there are only two 
licensees in the 24 GHz band that were relocated from the 18 GHz band, 
Teligent and TRW, Inc. The Commission understands that Teligent and its 
related companies have less than 1,500 employees, though this may 
change in the future. TRW is not a small entity. Thus, only one 
incumbent licensee in the 24 GHz band is a small business entity.
    128. Future 24 GHz Licensees. With respect to new applicants in the 
24 GHz band, the Commission has defined ``small business'' as an entity 
that, together with controlling interests and affiliates, has average 
annual gross revenues for the three preceding years not exceeding $15 
million. ``Very small business'' in the 24 GHz band is defined as an 
entity that, together with controlling interests and affiliates, has 
average gross revenues not exceeding $3 million for the preceding three 
years. The SBA has approved these definitions. The Commission will not 
know how many licensees will be small or very small businesses until 
the auction, if required, is held.
    129. Cable Television Relay Service. This service includes 
transmitters generally used to relay cable programming within cable 
television system distribution systems. The Census Bureau has defined a 
category of Cable and Other Program Distribution as follows: ``This 
industry comprises establishments primarily engaged as third-party 
distribution systems for broadcast programming. The establishments of 
this industry deliver visual, aural, or textual programming received 
from cable networks, local television stations, or radio networks to 
consumers via cable or direct-to-home satellite systems on a 
subscription or fee basis. These establishments do not generally 
originate programming material.'' The SBA has developed a small 
business size standard for Cable and Other Program Distribution, which 
is: All such firms having $13.5 million or less in annual receipts. 
According to Census Bureau data for 2002, there were a total of 1,191 
firms in this category that operated for the entire year. Of this 
total, 1,087 firms had annual receipts of under $10 million, and 43 
firms had receipts of $10 million or more but less than $25 million. 
Thus, under this size standard, the majority of firms can be considered 
small.
    130. Cable Companies and Systems. The Commission has also developed 
its own small business size standards, for the purpose of cable rate 
regulation. Under the Commission's rules, a ``small cable company'' is 
one serving 400,000 or fewer subscribers, nationwide. Industry data 
indicate that, of 1,076 cable operators nationwide, all but eleven are 
small under this size standard. In addition, under the Commission's 
rules, a ``small system'' is a cable system serving 15,000 or fewer 
subscribers. Industry data indicate that, of 7,208 systems nationwide, 
6,139 systems have under 10,000 subscribers, and an additional 379 
systems have 10,000-19,999 subscribers. Thus, under this second size 
standard, most cable systems are small.
    131. Cable System Operators. The Communications Act of 1934, as 
amended, also contains a size standard for small cable system 
operators, which is ``a cable operator that, directly or through an 
affiliate, serves in the aggregate fewer than 1 percent of all 
subscribers in the United States and is not affiliated with any entity 
or entities whose gross annual revenues in the aggregate exceed 
$250,000,000.'' The Commission has determined that an operator serving 
fewer than 677,000 subscribers shall be deemed a small operator, if its 
annual revenues, when combined with the total annual revenues of all 
its affiliates, do not exceed $250 million in the aggregate. Industry 
data indicate that, of 1,076 cable operators nationwide, all but ten 
are small under this size standard. The Commission neither requests nor 
collects information on whether cable system operators are affiliated 
with entities whose gross annual revenues exceed $250 million, and 
therefore it is unable to estimate more accurately the number of cable 
system operators that would qualify as small under this size standard.
    132. Multichannel Video Distribution and Data Service. Multichannel 
Video Distribution and Data Service (MVDDS) is a terrestrial fixed 
microwave service operating in the 12.2-12.7 GHz band. Licenses in this 
service were auctioned in January 2004, with 10 winning bidders for 192 
licenses. Eight of these 10 winning bidders claimed small businesses 
status for 144 of these licenses.

[[Page 48525]]

    133. Amateur Radio Service. These licensees are believed to be 
individuals, and therefore are not small entities.
    134. Aviation and Marine Services. Small businesses in the aviation 
and marine radio services use a very high frequency (VHF) marine or 
aircraft radio and, as appropriate, an emergency position-indicating 
radio beacon (and/or radar) or an emergency locator transmitter. The 
Commission has not developed a small business size standard 
specifically applicable to these small businesses. For purposes of this 
analysis, the Commission uses the SBA small business size standard for 
the category ``Cellular and Other Telecommunications,'' which is 1,500 
or fewer employees. Most applicants for recreational licenses are 
individuals. Approximately 581,000 ship station licensees and 131,000 
aircraft station licensees operate domestically and are not subject to 
the radio carriage requirements of any statute or treaty. For purposes 
of the Commission's evaluations in this analysis, the Commission 
estimates that there are up to approximately 712,000 licensees that are 
small businesses (or individuals) under the SBA standard. In addition, 
between December 3, 1998 and December 14, 1998, the Commission held an 
auction of 42 VHF Public Coast licenses in the 157.1875-157.4500 MHz 
(ship transmit) and 161.775-162.0125 MHz (coast transmit) bands. For 
purposes of the auction, the Commission defined a ``small'' business as 
an entity that, together with controlling interests and affiliates, has 
average gross revenues for the preceding three years not to exceed $15 
million dollars. In addition, a ``very small'' business is one that, 
together with controlling interests and affiliates, has average gross 
revenues for the preceding three years not to exceed $3 million 
dollars. There are approximately 10,672 licensees in the Marine Coast 
Service, and the Commission estimates that almost all of them qualify 
as ``small'' businesses under the above special small business size 
standards.
    135. Personal Radio Services. Personal radio services provide 
short-range, low power radio for personal communications, radio 
signaling, and business communications not provided for in other 
services. The Personal Radio Services include spectrum licensed under 
part 95 of the rules. These services include Citizen Band Radio Service 
(CB), General Mobile Radio Service (GMRS), Radio Control Radio Service 
(R/C), Family Radio Service (FRS), Wireless Medical Telemetry Service 
(WMTS), Medical Implant Communications Service (MICS), Low Power Radio 
Service (LPRS), and Multi-Use Radio Service (MURS). There are a variety 
of methods used to license the spectrum in these rule parts, from 
licensing by rule, to conditioning operation on successful completion 
of a required test, to site-based licensing, to geographic area 
licensing. Under the RFA, the Commission is required to make a 
determination of which small entities are directly affected by the 
rules being adopted. Since all such entities are wireless, the 
Commission applies the definition of cellular and other wireless 
telecommunications, pursuant to which a small entity is defined as 
employing 1,500 or fewer persons. Many of the licensees in these 
services are individuals, and thus are not small entities. In addition, 
due to the mostly unlicensed and shared nature of the spectrum utilized 
in many of these services, the Commission lacks direct information upon 
which to base an estimation of the number of small entities under an 
SBA definition that might be directly affected by the proposed rules.
    136. Despite the paucity, or in some instances, total absence, of 
information about their status as licensees or regulatees or the number 
of operators in each such service, users of spectrum in these services 
are listed as a matter of Commission discretion in order to fulfill the 
mandate imposed on the Commission by the RFA to regulate small business 
entities with an understanding towards preventing the possible 
differential and adverse impact of the Commission's rules on smaller 
entities. Further, the listing of such entities, despite their 
indeterminate status, should provide them with fair and adequate notice 
of the possible impact of the instant proposals.
    137. Public Safety Radio Services. Public Safety radio services 
include police, fire, local government, forestry conservation, highway 
maintenance, and emergency medical services. There are a total of 
approximately 127,540 licensees in these services. Governmental 
entities as well as private businesses comprise the licensees for these 
services. All governmental entities with populations of less than 
50,000 fall within the definition of a small entity.

D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities

    138. The NPRM seeks to evaluate whether changes to the existing 
service rules pertaining to 700 MHz Band licenses may ultimately permit 
more effective use of this spectrum to better meet the needs of today's 
consumers. To the extent the Commission's past decisions no longer 
reflect the best approach with regard to the license area sizes, band 
plan, performance requirements, renewal criteria, length of license 
terms, power limits, and 911/E911 & hearing aid-compatibility 
requirements, the NPRM seeks comment on the possibility of making 
appropriate adjustments to various requirements that will serve the 
public interest.
    139. Although the NPRM does not propose any specific rules with new 
reporting, recordkeeping or other compliance requirements for small 
entities on the aforementioned issues, the Commission is open to 
comment on what, if any, requirements it should, or should not, impose 
for small entities if it adopts new rules based on the proposals in the 
NPRM. For example, there is the possibility that modifying performance 
requirements and secondary market provisions for certain 700 MHz Band 
licenses could require new reporting and recordkeeping practices for 
small entities regarding where and how spectrum is used. In addition, 
new renewal criteria could possibly be established such that the 
Commission would codify new requirements for renewal or, in the 
alternative, list factors that are relevant to licensees' (including 
small entities') informational showings that renewal is in the public 
interest. Under such a proposal, the NPRM states that such licensees 
may have to report on factors such as the level of service and whether 
it was ``substantial''; whether service was ever interrupted and 
discontinued; whether service has been provided to any rural or tribal 
areas; whether a licensee has received any requests from others seeking 
to enter into spectrum leasing arrangements, and whether it has entered 
into any such arrangements; and any other factors typically associated 
with assessments of a licensee's level of service to the public. The 
NPRM also seeks comment on whether any additional modifications to 700 
MHz Band power limit rules would be appropriate; in this regard, it 
states that such action could result in, e.g., the use of the 
notification procedures for high-powered Upper 700 MHz Band operations 
that are currently applied to high-powered Lower 700 MHz Band 
operations. A tentative conclusion to require certain 700 MHz Band, and 
part 27, licensees to comply with the 911/E911 and hearing aid-
compatibility requirements (as well as seeking comment on whether to 
apply these requirements to licensees in other WRS) is another example 
of a projected compliance requirement that could affect small entities.

[[Page 48526]]

E. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    140. The RFA requires an agency to describe any significant, 
specifically small business alternatives that it has considered in 
reaching its proposed approach, which may include the following four 
alternatives (among others): (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) and exemption 
from coverage of the rule, or any part thereof, for small entities.
    141. In the NPRM, the Commission specifically considers small 
business alternatives in seeking comment on the existing size of 
geographic service areas for the 700 MHz Band. Specifically, the NPRM 
seeks comment on whether there is a need for additional small 
geographic service area licenses in the band, such as the 734 CMAs. The 
Commission notes that the Rural Cellular Association claims that small 
entities are unable to compete effectively for licenses that combine 
rural and major metropolitan areas and the availability of RSAs (as 
opposed to other small units) is especially important to small and 
rural carriers given their potential greater interest in serving these 
high-cost areas than large regional and nationwide carriers.
    142. On this question of the optimal size of the service areas for 
the 700 MHz Band, the NPRM seeks comment on whether firms, including 
small entities, need additional access to spectrum over small service 
areas. It considers in general the economic impact to small entities of 
the possible transaction costs associated with the assignment of 
additional spectrum over small and large service areas alike. For 
example, the NPRM seeks comment on the factors that the Commission 
should use in balancing the needs of small and rural carriers as well 
as large and national carriers as they seek to provide service to their 
rural customers.
    143. The NPRM also seeks comment on the optimal service area 
size(s) for the remaining unauctioned licenses to the extent a 
demonstrated need exists for smaller or other sized areas. With respect 
to impacts to small entities, the NPRM states that both large 
nationwide providers as well as small regional and rural providers may 
be able to make use of the 700 MHz Band, yet explains that the optimal 
size of geographic service area is different for these two types of 
providers, and licenses for areas that are larger or smaller than 
desired will impose transaction costs on those parties that wish to 
acquire them. The NPRM seeks comment on the degree and likelihood of 
such economic costs as 700 MHz Band spectrum is licensed in the future, 
and the extent to which the transaction costs of aggregating, 
disaggregating, or partitioning spectrum are a significant concern for 
those parties that most highly value this spectrum, including small 
entities. The NPRM also discusses how certain providers in the 700 MHz 
Band have focused on smaller sized service areas, and it notes that a 
number of small providers have acquired Lower 700 MHz Block C spectrum 
apparently to provide services specifically to rural areas over RSAs. 
Thus, the NPRM seeks comment on what the optimal size for smaller areas 
would be, as well as how the size of licensed geographic service area 
impacts the services that are currently being developed, and which may 
be developed, for use of the 700 MHz Band.
    144. The NPRM then seeks comment on which spectrum blocks in the 
700 MHz Band would be suitable for licensing over small or other sized 
areas. Specifically, the Commission seeks comment on the impact of 
designating the unpaired 6 megahertz Block E in the Lower 700 MHz Band 
for small-area licensing. Regarding this significant alternative, the 
NPRM inquires if 6 megahertz is sufficient to meet small and/or rural 
carriers' spectrum needs, and asks commenters to address whether there 
are broadband technologies that can operate on unpaired spectrum such 
that the 6 megahertz of spectrum in Block E would be suitable for 
potential reassignment. Taking into account the resources available to 
small entities, the NPRM also addresses how any need for small and 
rural carriers to provide adjacent TV Channel 51 protection might 
affect their ability to provide service to those areas if Block A were 
designated for small area licensing.
    145. In addition to seeking comment on the size of service areas, 
the Commission seeks comment on possibly changing the size of spectrum 
blocks in the 700 MHz Band plan. To the extent the Commission decides 
to auction and assign additional licenses over service area sizes other 
than the six EAGs, the NPRM seeks comment on whether reconfiguring or 
sub-dividing existing spectrum blocks in the band plans in the 700 MHz 
Band could better accommodate such assignments and thereby facilitate 
access to spectrum by small entities. In particular, the NPRM seeks 
comment on dividing the 20-megahertz Block D license in the Upper 700 
MHz Band into two or more license blocks to create additional 
opportunities for firms to acquire spectrum, including small business 
and rural providers.
    146. In the next section of the NPRM, the Commission seeks comment 
on whether it should take additional action with regard to the spectrum 
in the 700 MHz Band so as to help facilitate access to that spectrum 
and the provision of service to all consumers, including those in rural 
areas. In contrast to the significant alternatives on the size of 
geographic service areas and/or spectrum blocks that may help increase 
access to spectrum at auction for a wide variety of entities, this 
section seeks comment on whether the Commission's existing 
``substantial service'' performance requirements and related policies 
pertaining to 700 MHz Band licenses serve to facilitate deployment of 
wireless services in the 700 MHz Band. For example, the NPRM seeks 
comment on significant alternatives that impact small entities, such as 
the possibility of adopting ``keep what you use'' re-licensing 
mechanisms. It also seeks comment on options that may facilitate access 
to spectrum in the secondary market for all potential service 
providers, including small entities and those specifically seeking to 
deliver service to rural areas and tribal lands.
    147. The next portions of the NPRM seek comment on potential 
changes to several of the Commission's initial determinations 
applicable to 700 MHz Band licenses, changes which could affect small 
entities. First, the NPRM requests comment on whether to amend 
Commission rules to clarify the requirements and procedures of the 
renewal process for 700 MHz Band licenses, particularly as they relate 
to existing rules requiring demonstrations of ``substantial service'' 
for renewal applicants involved in comparative proceedings. Second, the 
NPRM invites comment on extending the license terms of 700 MHz Band 
licenses to an expiration date beyond 2015 in order to afford licensees 
a sufficient period of time for deployment of new 700 MHz Band services 
once the DTV transition is complete. Third, the NPRM seeks comment on 
whether the power limits in the existing rules for the 700 MHz Band 
spectrum should be revised. In addition to the possible new reporting, 
recordkeeping or other compliance requirements that could impact small 
entities, it is not anticipated that any rules adopted in this area 
would

[[Page 48527]]

adversely impact small entities. Both small and large entities may 
benefit from changes to these rules.
    148. Finally, because Commission rules have not been expanded to 
include licensees (including small entities) providing service in later 
authorized, additional WRS such as the 700 MHz Band, the NPRM seeks 
comment on the tentative conclusion that services provided by licensees 
in the 700 MHz Band, and in other bands subject to part 27 of the rules 
such as AWS-1, should be subject to E911 and hearing aid-compatibility 
requirements to the same extent that such services would be covered if 
provided in other bands. It then seeks comment on how to modify 
Commission rules to ensure that they include all similar WRS. Because 
many of the services permitted across the WRS can be expected to be 
similar to services presently subject to the 911/E911 and hearing aid-
compatibility requirements, the NPRM seeks comment on whether to amend 
the rules to ensure that all similar wireless services that meet 
certain criteria discussed in the NPRM will be subject to the 911/E911 
and hearing aid-compatibility requirements. To minimize significant 
economic impact to the many firms, including small entities, that are 
or will become licensees in the various WRS, the NPRM seeks comment on 
impacts including, e.g., the time necessary to complete such changes to 
the standards.

F. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    149. None.

V. Ordering Clauses

    150. Accordingly, it is ordered, pursuant to Sections 1, 2, 4(i), 
5(c), 7, 10, 201, 202, 208, 214, 222(d)(4)(A) through (C), 222(f), 
222(g), 222(h)(1)(A), 222(h)(4) through (5), 251(e)(3), 301, 302, 303, 
307, 308, 309, 310, 311, 314, 316, 319, 324, 332, 333, 336, 337, 614, 
615, and 710 of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 152, 154(i), 155(c), 157, 160, 201, 202, 208, 214, 222(d)(4)(A) 
through (C), 222(f), 222(g), 222(h)(1)(A), 222(h)(4) through (5), 
251(e)(3), 301, 302, 303, 307, 308, 309, 310, 311, 314, 316, 319, 324, 
332, 333, 336, 337, 534, 535, and 610 that this Notice of Proposed 
Rulemaking, Fourth Further Notice of Proposed Rulemaking, and Second 
Further Notice of Proposed Rulemaking are hereby adopted.
    151. It is further ordered that pursuant to applicable procedures 
set forth in Sections 1.415 and 1.419 of the Commission's Rules, 47 CFR 
1.415, 1.419, interested parties may file comments on the Notice of 
Proposed Rulemaking, Fourth Further Notice of Proposed Rulemaking, and 
Second Further Notice of Proposed Rulemaking on or before September 20, 
2006 and reply comments on or before October 20, 2006.
    152. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Notice of Proposed Rulemaking, Fourth Further Notice of 
Proposed Rulemaking, and Second Further Notice of Proposed Rulemaking, 
including the Initial Regulatory Flexibility Analysis, to the Chief 
Counsel for Advocacy of the Small Business Administration.

Federal Communications Commission.
William F. Caton,
Deputy Secretary.
[FR Doc. 06-7051 Filed 8-17-06; 8:45 am]
BILLING CODE 6712-01-P


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