[Federal Register Volume 72, Number 94 (Wednesday, May 16, 2007)]
[Rules and Regulations]
[Pages 27688-27713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-9334]



[[Page 27687]]

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Part VII





Federal Communications Commission





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47 CFR Parts 1, 20, 27, and 90



Service Rules for the 698-806 MHz Band and Revision of the Commission's 
Rules Regarding Enhanced 911 Emergency Calling Systems, Hearing Aid-
Compatible Telephones, and Public Safety Spectrum Requirements; Final 
Rule

Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Rules 
and Regulations

[[Page 27688]]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 20, 27, and 90

[WT Docket No. 06-150; CC Docket No. 94-102; WT Docket No. 01-309; WT 
Docket No. 03-264; WT Docket No. 06-169; PS Docket No. 06-229; WT 
Docket No. 96-86; FCC No. 07-72]


Service Rules for the 698-806 MHz Band and Revision of the 
Commission's Rules Regarding Enhanced 911 Emergency Calling Systems, 
Hearing Aid-Compatible Telephones, and Public Safety Spectrum 
Requirements

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission (FCC) 
adopts final rules governing wireless licenses in the 698-806 MHz Band 
(i.e., the 700 MHz Band). This spectrum is currently occupied by 
television broadcasters and is being made available for wireless 
services, including public safety and commercial services, as a result 
of the digital television (``DTV'') transition.

DATES: Effective May 16, 2007, except for the amendments to Sec. Sec.  
20.18(a), 27.50(c)(5), and 27.50(c)(8) which contain information 
collection requirements that have not been approved by the Office of 
Management and Budget (OMB). The Commission will publish a document in 
the Federal Register announcing the effective date.

ADDRESSES: Federal Communications Commission, 445 12th Street, SW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Paul Moon at (202) 418-1793, 
<a href="/cdn-cgi/l/email-protection#65150410094b080a0a0b250306064b020a13"><span class="__cf_email__" data-cfemail="265647534a084b4949486640454508414950">[email protected]</span></a>, Mobility Division, Wireless Telecommunications 
Bureau; Paul D'Ari at (202) 418-1550, <a href="/cdn-cgi/l/email-protection#1c6c7d697032787d6e755c7a7f7f327b736a"><span class="__cf_email__" data-cfemail="b2c2d3c7de9cd6d3c0dbf2d4d1d19cd5ddc4">[email protected]</span></a>, Spectrum and 
Competition Policy Division, Wireless Telecommunications Bureau; John 
Evanoff at (202) 418-0848, <a href="/cdn-cgi/l/email-protection#0f65606761216a796e616069694f696c6c21686079"><span class="__cf_email__" data-cfemail="e3898c8b8dcd8695828d8c8585a3858080cd848c95">[email protected]</span></a>, Public Safety and 
Homeland Security Bureau.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order, WT Docket No. 06-150; CC Docket No. 94-102; WT Docket No. 
01-309; WT Docket No. 03-264; WT Docket No. 06-169; PS Docket No. 06-
229; WT Docket No. 96-86, FCC No. 07-72, adopted April 25, 2007 and 
released April 27, 2007. The full text of the Report and Order is 
available for public inspection on the Commission's Internet site at 
http://www.fcc.gov. It is also available for inspection and copying 
during regular business hours in the FCC Reference Center (Room CY-
A257), 445 12th Street, SW., Washington, DC 20554. The full text of 
this document also may be purchased from the Commission's duplication 
contractor, Best Copy and Printing Inc., Portals II, 445 12th St., SW., 
Room CY-B402, Washington, DC 20554; telephone (202) 488-5300; fax (202) 
488-5563; e-mail <a href="/cdn-cgi/l/email-protection#9ddbdededddfdecdd4cad8dfb3ded2d0"><span class="__cf_email__" data-cfemail="a3e5e0e0e3e1e0f3eaf4e6e18de0ecee">[email protected]</span></a>.

Final Paperwork Reduction Act of 1995 Analysis

    The Report and Order contains modified information collection 
requirements subject to the Paperwork Reduction Act of 1995 (PRA), 
Public Law 104-13. It will be submitted to the Office of Management and 
Budget (OMB) for review under Sec.  3507(d) of the PRA. OMB, the 
general public, and other Federal agencies are invited to comment on 
the new information collection requirements contained in this 
proceeding. Public and agency comments are due sixty days from 
publication of a summary of the Report and Order in the Federal 
Register. Comments should address the following: (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 respondents, 
including the use of automated collection techniques or other forms of 
information technology. In addition, the Commission notes that pursuant 
to the Small Business Paperwork Relief Act of 2002, Public Law 107-198, 
see 44 U.S.C. 3506(c)(4), we previously sought specific comment on how 
the Commission might ``further reduce the information collection burden 
for small business concerns with fewer than 25 employees.'' In this 
present document, we have assessed the potential effects of the various 
policy changes with regard to information collection burdens on small 
business concerns, and find that there are no results specific to 
businesses with fewer than 25 employees. We note that the information 
collections contained in Sec.  20.18(j)(4) are a result of the 
amendments to Sec.  20.18(a). We also note that Sec.  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.\1\ The Commission is therefore not 
inviting comment on any information collections that concern 
frequencies in the 746-806 MHz Band.
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    \1\ 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 Sections 3507 and 3512 of 
Title 44, United States Code. Consolidated Appropriations Act 2000, 
Pub. L. No. 106-113, 113 Stat. 2502, Appendix E, Sec. 213(a)(4)(A)-
(B); see 145 Cong. Rec. H12493-94 (Nov. 17, 1999); 47 U.S.C.A. 337 
note at Sec. 213(a)(4)(A)-(B).
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Synopsis

    1. In this Report and Order, the Commission addresses rules 
governing wireless licenses in the 698-806 MHz Band (i.e., the 700 MHz 
Band). This spectrum currently is occupied by television broadcasters 
in TV Channels 52-69 and is being made available for wireless services, 
including public safety and commercial services, as a result of the 
digital television (DTV) transition. The Commission has been 
considering rules related to the use of this spectrum in three ongoing 
proceedings: (1) The 700 MHz Commercial Services proceeding,\2\ (2) the 
700 MHz Guard Bands proceeding,\3\ and (3) the 700 MHz Public Safety 
proceeding.\4\ Because decisions on certain issues in the three 
proceedings are potentially interrelated, the three proceedings are 
being jointly addressed in the Report and Order. In doing so, the 
Commission seeks to promote access to 700 MHz Band spectrum and the 
provision of service to consumers across the county, including in rural 
areas, as

[[Page 27689]]

well as opportunities for broadband service for Public Safety users.
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    \2\ See Service Rules for the 698-749, 747-762 and 777-792 MHz 
Bands, WT Docket No. 06-150, Revision of the Commission's Rules to 
Ensure Compatibility with Enhanced 911 Emergency Calling Systems, CC 
Docket No. 94-102, and Sec.  68.4(a) of the Commission's Rules 
Governing Hearing Aid-Compatible Telephones, WT Docket No. 01-309, 
Notice of Proposed Rule Making, Fourth Further Notice of Proposed 
Rule Making, and Second Further Notice of Proposed Rule Making, 21 
FCC Rcd 9345 (2006).
    \3\ See Former Nextel Communications, Inc. Upper 700 MHz Guard 
Band Licenses and Revisions to Part 27 of the Commission's Rules, 
Development of Operational, Technical and Spectrum Requirements for 
Meeting Federal, State and Local Public Safety Communications 
Requirements Through the Year 2010, WT Docket Nos. 06-169 and 96-86, 
Notice of Proposed Rule Making, 21 FCC Rcd 10413 (2006).
    \4\ See Implementing a Nationwide, Broadband, Interoperable 
Public Safety Network in the 700 MHz Band, Development of 
Operational, Technical and Spectrum Requirements for Meeting 
Federal, State and Local Public Safety Communications Requirements 
Through the Year 2010, PS Docket 06-229, WT Docket No. 96-86, Ninth 
Notice of Proposed Rule Making, 21 FCC Rcd 14837 (2006); Development 
of Operational, Technical and Spectrum Requirements for Meeting 
Federal, State and Local Public Safety Communications Requirements 
Through the Year 2010, Eighth Notice of Proposed Rulemaking, WT 
Docket Nos. 96-86 and 05-157, 21 FCC Rcd 3668 (2006).
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A. 700 MHz Commercial Services

1. Facilitating Access to Spectrum and Provision of Service to 
Consumers
    (i) Mix of Geographic Service Area Sizes
    2. The FCC finds that providing for a mix of geographic licensing 
areas in the 700 MHz Band will balance the demand for differently sized 
licenses demonstrated in the record and enhance access to the spectrum 
by a variety of potential licensees. In particular, the FCC determines 
to replace the unassigned Economic Area Groupings (EAGs)-sized license 
areas, as established in the current band plan, with a mix of 
geographic licensing areas consisting of Cellular Market Areas (CMAs), 
Economic Areas (EAs), and Regional Economic Area Groupings (REAGs). 
These revisions are consistent with the goal of providing greater 
access to spectrum for small providers and parties in rural areas, and 
improving the opportunity for a wider range of potential licensees to 
obtain access to this valuable spectrum.
    3. In determining the size of service areas, the FCC has stated as 
a general principle that it will consider licensing the spectrum over a 
range of various sized geographic areas, including smaller service 
areas such as CMAs, where consistent with the record in that proceeding 
and with other factors that may be relevant to the spectrum. Many 
commenters, including small and regional service providers and entities 
that represent rural interests, favor an approach that would provide 
for a variety of license sizes beyond those in the current band plan. 
The FCC agrees with those commenters who observe that a revised mix of 
smaller license sizes would provide a more balanced set of initial 
licensing opportunities at this time and make available more licenses 
to match the needs of different potential users. The opportunities 
afforded by providing licenses with a mix of geographic areas were seen 
in the results of Auction No. 66 involving Advanced Wireless Services 
(AWS)-1 licenses, where many different bidders won smaller and mid-
sized licenses, such as CMAs and EAs. The same policy of providing a 
mix of licenses that balances competing interests is appropriate here. 
These revisions will advance the FCC's statutorily directed goals to 
promote service to rural areas, promote investment in and the rapid 
deployment of new technologies and services, avoid the excessive 
concentration of licenses, and provide for the dissemination of 
licenses among a wide variety of applicants.
    4. The FCC concludes that providing a mix of CMA, EA, and REAG 
licenses in the 700 MHz Commercial Services spectrum will be an 
effective means of providing increased access to spectrum, especially 
in rural areas, while simultaneously meeting other Commission goals. 
The FCC disagrees with commenters who argue that any changes to smaller 
area licenses should be limited to the Upper 700 MHz Commercial 
Services Band, and not be implemented in the Lower 700 MHz Band.
    5. Consistent with its earlier findings with respect to license 
sizes in the Upper and Lower 700 MHz Bands, the FCC declines to adopt 
nationwide licensing for any of the 700 MHz Commercial Services 
spectrum blocks. It also declines to adopt service areas smaller than 
CMAs, such as county-sized areas, or other size areas, including Major 
Economic Areas (MEAs). Because the band plan for the 700 MHz Commercial 
Services Band no longer contains EAGs, for the EAs, REAGs, and CMAs the 
FCC will separately license the Gulf of Mexico with each of the 
following license divisions: EA licensing area 176; REAG licensing area 
12; and Metropolitan Statistical Area (MSA) licensing area 306. The FCC 
adopts: (i) The same definition of EAs set forth in Sec.  27.6(h) of 
the rules, currently applicable for AWS-1 spectrum, for EA licenses in 
the 700 MHz Commercial Services Band; (ii) the same definition of REAGs 
set forth in Sec.  27.6(h) of the rules, currently applicable for AWS-1 
spectrum, for REAG licenses; and (iii) the same definition of 
Metropolitan Statistical Areas and Rural Service Areas (MSAs/RSAs) set 
forth in Sec.  27.6(c), currently applicable to Block C of the Lower 
700 MHz Band, for CMAs. As the FCC has done in licensing other part 27 
services, the Gulf of Mexico service area is comprised of the water 
area of the Gulf of Mexico starting 12 nautical miles from the U.S. 
Gulf coast and extending outward.
(ii) Secondary Markets
    6. The FCC declines to adopt rules that would require 700 MHz 
Commercial Services Band licensees to make ``good faith'' efforts to 
negotiate with potential spectrum lessees, either as part of their 
performance requirements or as part of the criteria associated with 
license renewal. The FCC believes that such changes are unnecessary 
given the other measures it is adopting to promote access to spectrum 
in the 700 MHz Commercial Services Band. These measures involve 
revising the 700 MHz Commercial Services band plan to include a mix of 
smaller geographic licensing areas.
    7. Most commenters support a decision not to impose a ``good 
faith'' negotiation obligation on the 700 MHz Commercial Services Band 
licensees. Some of these commenters argue that such a requirement would 
be unnecessarily burdensome and could lead to uneconomic decisions. 
Commenters supporting the adoption of a ``good faith'' requirement 
argue that the FCC should consider a licensee's secondary markets 
participation as part of its license renewal process. The FCC notes, 
however, that its current spectrum leasing rules already provide a 
licensee with significant incentives to enter into spectrum leasing 
arrangements because licensees may rely on the activities of its 
spectrum lessee(s) for purposes of complying with the licensee's 
construction requirements. The FCC concludes that its decision to adopt 
a mix of geographic license area sizes, combined with our existing 
secondary markets rules, are sufficient to promote access to spectrum. 
Accordingly, the FCC declines to adopt further secondary markets 
requirements at this time.
2. Auctions-Related Issues
(i) Aggregating Licenses
    8. The FCC concludes that the public interest would be better 
served by relying on the existing secondary market to aggregate 
existing and new licenses rather than attempting to develop new rules 
and policies for incorporating existing 700 MHz Commercial Services 
licenses into an auction of new licenses. Parties bidding on new 
licenses should be able to accurately value those licenses, even absent 
an opportunity to simultaneously aggregate new with existing licenses. 
New licenses in the 700 MHz Commercial Services spectrum can be used 
independently of existing licenses. Applicants will be able to seek any 
of multiple new licenses, of varying geographic size, to serve any 
given location. Thus, the value of the new licenses is unlikely to 
depend significantly upon a party's ability to aggregate existing and 
new licenses. Moreover, the interests of aggregators are likely to be 
met in large part by the existing secondary market. Accordingly, the 
FCC concludes that no new rules or policies are needed to facilitate 
aggregation of existing and new 700 MHz Commercial Services licenses in 
order to increase the likelihood that these licenses will be assigned 
to the

[[Page 27690]]

parties most likely to put them to their most effective use.
(ii) Bidding Preferences
    9. The FCC rejects the suggestions of certain commenters that it 
set aside licenses in the 700 MHz Commercial Services Band auction 
solely for designated entities and the argument that the FCC adopt a 
third small business definition to provide for a 35% bidding credit. 
Consistent with the FCC's tentative conclusion not to adopt Access 
Spectrum et al.'s band plan proposal and in light of various 
difficulties in implementing such a bidding credit, the FCC also does 
not adopt a bidding credit based on providing access to spectrum for 
700 MHz public safety services.
    10. Although the Communications Act requires that the FCC ensure 
that ``designated entities'' are given the opportunity to participate 
in the provision of spectrum-based services and, for such purposes, 
consider the use of bidding preferences, these preferences can take 
many forms. In an early attempt to meet these mandates, the FCC set 
aside blocks of spectrum in the Broadband PCS band to be held by 
designated entities. The FCC's experience in Broadband PCS auctions and 
subsequent auctions has demonstrated, however, that bidding credits for 
designated entities afford such entities substantial opportunity to 
compete with larger businesses for spectrum licenses and provide 
spectrum-based services. For example, Auction No. 66 demonstrated very 
recently that designated entities can succeed in auctions for licenses 
for valuable spectrum without any set-asides. In Auction No. 66, more 
than half the winning bidders were designated entities that received 
discounts on their gross winning bids and designated entities won over 
twenty percent of the licenses sold. Moreover, setting aside licenses 
risks denying the licenses to other applicants that may be more likely 
to use them effectively or efficiently for the benefit of consumers. 
Potentially excluding such applicants could compromise the FCC's 
pursuit of various statutory objectives including promoting the 
development and deployment of new technologies, products, and services 
for the benefit of the public and promoting efficient and intensive use 
of the spectrum.
(iii) Competitive Bidding and Aggregating New Licenses
    11. The FCC's current competitive bidding rules authorize the use 
of package bidding and the FCC already has utilized a form of package 
bidding. Consequently, the question before the FCC now is whether it 
needs to make changes to our competitive bidding rules in order to 
enable a new form of package bidding for the 700 MHz Commercial 
Services auction. The FCC concludes that modifications to our current 
bidding systems, including those suggested by commenters, can be made 
without modifying its competitive bidding rules.
(iv) Modifications to the Tribal Land Bidding Credit
    12. No parties provided suggestions for possible modifications to 
the FCC's tribal land bidding credit rules to promote the deployment of 
wireless services to tribal lands or addressed the relationship between 
post-auction credits and the deadline for depositing payments. In light 
of the record, the FCC concludes that it need not modify the tribal 
land bidding credit at this time.
3. Additional Rules for Licensees
(i) Criteria for Renewal
    13. The FCC clarifies that all licensees in the 700 MHz Commercial 
Services Band seeking renewal of their authorizations at the end of 
their license term must file a renewal application in accordance with 
the provisions of Sec.  1.949 of the FCC's rules. Consistent with 
existing rules, as part of this renewal requirement licensees must 
demonstrate in their applications that they have provided substantial 
service during their past license term, which is defined as service 
that is sound, favorable, and substantially above a level of mediocre 
service that just might minimally warrant renewal. This requirement is 
distinct from performance requirements. Substantial service in the 
renewal context, as opposed to coverage benchmarks established for the 
performance requirement context, encompasses FCC consideration of a 
variety of factors including the level and quality of service, whether 
service was ever interrupted or discontinued, whether service has been 
provided to rural areas, and any other factors associated with a 
licensee's level of service to the public. Accordingly, a licensee that 
meets the applicable performance requirements might nevertheless fail 
to meet the substantial service standard at renewal. Licensees must 
demonstrate at renewal that they have substantially complied with all 
applicable FCC rules, policies, and the Communications Act of 1934, as 
amended, including any applicable performance requirements.
    14. Under the revised Sec.  27.14 of the FCC's rules, the FCC also 
is eliminating the filing of competing applications to requests for 
renewal of these 700 MHz licenses. The FCC is mindful of the potential 
costs and the burdens they impose on both it and licensees. The FCC 
agrees with comments that such administrative processes ``harken[ ] 
back to an old era * * * where competitors were known to file `strike' 
applications against a renewal in the hope of getting a payoff.'' Under 
the revised Sec.  27.14 of the FCC's rules, the FCC is therefore 
adopting a process by which 700 MHz Commercial Services Band licenses 
come back to the FCC for re-auction if a license is not renewed. The 
existing petition to deny process, coupled with the ability of a 
petitioner to participate in any subsequent auction to re-license 
spectrum that is returned to the FCC for lack of renewal, creates 
sufficient incentives to challenge inferior service or poor 
qualifications of licensees at renewal. This approach protects the 
public interest without creating incentives for speculators to file 
``strike'' applications.
    15. By eliminating the filing of competing applications at renewal, 
the FCC finds that the concerns raised by the majority of commenters in 
this proceeding about renewal expectancies are moot. The FCC recognizes 
that the majority of commenters that addressed renewal issues did not 
support any changes to the part 27 renewal rules applicable to 700 MHz 
Commercial Services Band licensees. Moreover, some of these commenters 
expressed concern that any revision to the rules governing renewal 
proceedings would eliminate the concept of ``renewal expectancy'' that 
applied in comparative hearings. Because smaller carriers and rural 
interests in particular seemed concerned that certain rule changes 
would place a new burden on carriers ill-equipped to meet it, we have 
decided to maintain 700 MHz Commercial Services Band licensees' 
expectations of renewal by eliminating provisions for competing 
applications. This action provides additional certainty for all 700 MHz 
Commercial Services Band licensees, and requests by certain commenters 
to do otherwise could result in additional administrative burdens on 
licensees that we find not to be in the public interest.
(ii) License Terms
    16. The FCC revises its rules to provide that initial 
authorizations for the 700 MHz Commercial Services Band will have a 
term not to exceed 10 years from February 17, 2009, which is the firm 
deadline for the DTV transition. Subsequent renewals will be for terms 
not to exceed 10 years. This revised

[[Page 27691]]

license term will apply to all licenses in the 700 MHz Commercial 
Services Band. However, because Sec.  307(c)(1) of the Communications 
Act provides that a license for operating a broadcast station shall not 
be granted for a term that exceeds 8 years, the FCC retains the current 
provision 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 FCC does not revise the license term for Guard Band 
licensees because such revisions fall beyond the scope of the 700 MHz 
Commercial Services proceeding.
    17. The FCC is extending the revised license term to both the 
already auctioned and unauctioned licenses in the 700 MHz Commercial 
Services Band. The FCC finds that uniformly extending the license term 
in this manner provides a level of parity for services within the same 
band. In addition, this treatment recognizes that band clearing and the 
resulting unencumbered use of the spectrum in the pre-DTV Act period 
was tied to a transition scheme that has now been replaced with a firm 
statutory transition date of February 17, 2009. Specifically, the 
underlying reason behind the current rule changed with passage of the 
DTV Act. The FCC previously determined that a definite termination 
date, e.g., January 1, 2015, was preferable to a discrete term of years 
following the end of the DTV transition, which at that time was subject 
to extension on a market-by market basis. The same license terms that 
were adopted in the Upper 700 MHz First Report and Order were applied 
to licenses in the Lower 700 MHz Band. However, the DTV Act's uniform 
deadline for the DTV transition has effectively removed the issue of 
market-by-market broadcast incumbency. Under these circumstances, the 
FCC provides a level of uniformity by extending the revised license 
terms to all licensees in the 700 MHz Commercial Services Band, except 
for those engaging in broadcast services.
    18. The FCC finds that a term not to exceed 10 years from February 
17, 2009, should be used for initial authorizations in the 700 MHz 
Commercial Services Band, and that subsequent renewal terms will be 10 
years. A ten-year license term is consistent with most other part 27 
services, with the exception of recently auctioned AWS-1 licenses, 
which we address below, as well as with the license terms for other 
similar spectrum, such as that used for cellular service and PCS. In 
addition, this period will offer licensees regulatory certainty and 
help promote investment in the band. Under the current rules, all 
licensees would have terms that extend until January 1, 2015, which is 
only approximately six years from the end of the DTV transition. Thus, 
licensees that acquire their authorizations in a future auction would 
have had an initial license term less than ten years, and more likely 
for a shorter period, i.e., six or seven years, depending on the date 
of the auction and issuance of the authorizations. In similar fashion, 
current licensees in the 700 MHz Commercial Services Band would only 
have approximately six years of access to their spectrum free from 
broadcasters. The FCC finds that a longer period should be made 
available to all licensees in order to provide sufficient time for the 
recovery of costs related to the development and deployment of new 
services, especially those based on technologies that are more 
advanced, more expensive, and which may take longer to develop. The 700 
MHz Commercial Services Band is a likely band for the use of these more 
advanced technologies and we are concerned that a license term that 
expires only six years from the DTV transition provides too short a 
time period.
    19. The FCC declines to increase the length of initial or renewal 
terms to fifteen years. The FCC disagrees with those commenters who 
argue that parity with AWS-1 services mandates a fifteen-year term for 
700 MHz services. The ``relocation and band clearance issues'' that 
provided the rationale for the fifteen-year initial licenses for AWS-1 
services do not apply here. The date certain of February 17, 2009, for 
the end of the DTV transition means that spectrum in the 700 MHz Band 
will be clear for use by 700 MHz Band licensees as of that date.
    20. The FCC also disagrees with commenters who argue that the 
current license term should be retained in order to promote prompt use 
of the spectrum and with commenters who argue that the current rule 
should be kept to spur the development of a secondary market. The 
combination of the FCC decisions in this Report and Order and the FCC's 
secondary markets policies make it unlikely that this highly valued 
spectrum will sit unused. The FCC's secondary market spectrum leasing 
policies focus on promoting spectrum leasing arrangements, and the FCC 
has taken steps in this Report and Order to improve use of the 
spectrum, including the provision of a mix of geographic license areas 
consisting of CMAs, EAs, and REAGs.
    21. Finally, because of the specifically applicable statutory 
limitation, the FCC will retain the current requirement that 700 MHz 
Commercial Services Band licensees commencing broadcast services will 
be required to seek renewal of their licenses for such services prior 
to the termination of the eight-year term following commencement of 
such operations. As stated above, Sec.  307(c)(1) of the Communications 
Act provides that licenses granted for operating broadcast stations 
``shall be for a term not to exceed 8 years.''
(iii) Power Limits for Lower 700 MHz Band and Upper 700 MHz Commercial 
Services Band Base Stations
    22. The FCC modifies its power limit rules for the Lower 700 MHz 
Band and the Upper 700 MHz Commercial Services Band in a number of 
ways. First, the FCC implements a PSD model for defining power limits 
for base stations operating in the entire 700 MHz Commercial Services 
Band. The current power limit rules do not specify a bandwidth over 
which a licensee's power is to be limited, and could be construed to 
mean that the power limit applies on a ``per emission'' basis. Because 
some licensees may only transmit one emission within their given 
bandwidth, while others using technologies with narrower emissions 
might employ multiple emissions over that bandwidth, construing the 
power limit to apply on a ``per emission'' basis could allow licensees 
employing multiple emissions to transmit more total energy in their 
authorized spectrum blocks than licensees with only one emission in 
their spectrum blocks. To better accommodate all technologies, the FCC 
is clarifying that the maximum allowable power levels in the 700 MHz 
Commercial Services Band are to be defined on a ``per megahertz of 
spectrum bandwidth'' basis, rather than on a ``per emission'' basis. 
This clarification will enable higher power signals from wider band 
technologies, but will not result in a decrease in the total power 
currently allowed in the band from narrower band technologies. Given 
this clarification, the FCC is also adopting additional measures to 
protect against any possible increased risk of interference, especially 
to 700 MHz public safety users.
    23. More specifically, the FCC will allow 700 MHz Commercial 
Services Band licensees employing bandwidths greater than 1 megahertz 
to meet a base station power limit of 1 kW/MHz ERP (i.e., no more than 
1 kW ERP in any 1 megahertz band segment). Licensees operating with 
bandwidths of less than one megahertz will, however, continue

[[Page 27692]]

to be permitted to operate at power levels up to 1 kW ERP over their 
bandwidth. Thus, for example, a licensee transmitting a signal with a 
bandwidth of 5 megahertz could employ a power level of 5 kW ERP over 
the 5 megahertz bandwidth, with each 1 megahertz band segment within 
the 5 megahertz bandwidth being limited to 1 kW ERP; and a licensee 
transmitting a signal with a bandwidth of 200 kilohertz could employ a 
power level of 1 kW ERP over the 200 kilohertz bandwidth. This approach 
to defining power limits will achieve a degree of technological 
neutrality by ensuring that all licensees regardless of technology 
choice have enough power to operate a viable service. This neutrality 
would not exist if all licensees, regardless of their operating 
bandwidth, were required to limit their base station power levels to 1 
kW ERP per emission.
    24. In response to proposals by parties seeking greater power 
limits for rural area operations, the FCC will permit power levels of 
up to 2 kW/MHz ERP in rural areas, and consistent with its decision 
above, the FCC will allow rural licensees operating with bandwidths 
less than one megahertz to operate at power levels up to 2 kW ERP over 
their bandwidth. In implementing this decision, the FCC will define 
rural areas, consistent with the Rural Report and Order, as those 
counties in the U.S. having a population of fewer than 100 people per 
square mile, based on the most recently available population statistics 
from the Bureau of the Census. Increasing the permissible power in 
rural areas will enable 700 MHz Commercial Services Band licensees 
operating in such areas to more easily implement their systems; and 
increasing power levels in rural areas would be consistent with the 
recent FCC decision to permit rural carriers in the Cellular, AWS, and 
Broadband PCS services to operate at higher power levels. The FCC notes 
that in the Rural Report and Order, where the same power increase was 
adopted, it decided, as a ``cautionary measure,'' to require carriers 
operating at higher power levels to coordinate with licensees operating 
within 75 miles of their base stations. Consistent with this decision, 
the FCC shall require any 700 MHz Commercial Services Band licensee 
seeking to operate a base station under our rules permitting power 
levels greater than 1 kW ERP in rural areas to coordinate in advance 
with all non-public safety 700 MHz licensees authorized to operate 
within 75 miles of the station and with all 700 MHz Regional Planning 
Committees that have jurisdiction within 75 miles of the station.
    25. As noted above, licensees in the Lower 700 MHz Band are allowed 
to use up to 50 kW ERP if they do not produce signals exceeding a power 
flux density (PFD) of 3 mW/m\2\ on the ground within 1 kilometer of the 
station. A number of commenters expressed views on the appropriateness 
of the current, maximum 50 kW ERP capability for Lower 700 MHz Band 
operations. Considering these comments, the FCC makes certain 
modifications to the power limit rules in the Lower 700 MHz Band. 
Specifically, the FCC will retain the ability of incumbent C and D 
Block licensees to employ power levels up to 50 kW ERP. In addition, 
because the FCC believes that unpaired blocks are conducive to the 
provision of broadcast-type operations, it shall permit licensees 
operating in any unpaired block(s) in the Lower 700 MHz Band to operate 
at a power level of 50 kW ERP as well. However, because the FCC 
believes that paired blocks are generally more conducive to the 
provision of mobile services, it shall not extend to new licensees 
operating in any Lower 700 MHz Band paired blocks the ability to 
operate at 50 kW ERP. This action helps preserve the flexibility the 
FCC originally envisioned for the Lower 700 MHz Band, i.e., the use of 
both broadcast and mobile services in the band, by providing an 
environment conducive to mobile systems in the paired blocks and an 
environment conducive to broadcast-type systems in the unpaired blocks. 
Current and future licensees nevertheless will have the flexibility to 
implement broadcast-type or mobile systems in any particular block. For 
example, a licensee may implement a broadcast-type system in a paired 
block, but rather than a high-power, high-site system, it would have to 
design a distributed broadcast system.
    26. In reaching this decision, the FCC concludes that it would not 
be appropriate to reduce the power limits of incumbent Lower 700 MHz 
Band licensees, who acquired their spectrum with the expectation that 
they would be able to employ 50 kW ERP transmissions in the band. 
Although the FCC recognizes concerns expressed by certain parties 
regarding the potential for adjacent band interference into the current 
unauctioned paired blocks (i.e., the current A and B Blocks) from high 
power emissions in adjacent incumbent and unauctioned unpaired blocks, 
the FCC continues to believe that our out-of-band emission limits 
coupled with the 3 mW/m\2\ PFD requirement will be effective in 
protecting unauctioned paired blocks from adjacent channel 
interference. The FCC notes, however, that the 50 kW ERP limit in the 
Lower 700 MHz Band was based on a traditional broadcast emission, which 
consists of a single emission within the licensed bandwidth. The FCC 
never intended that emissions within a single block in the Lower 700 
MHz Band exceed 50 kW ERP. Accordingly, the FCC clarifies that the 50 
kW ERP limit for the current C and D Blocks, and any additional 
unpaired block(s) in the Lower 700 MHz Band, is a cap on the average 
total power of all emissions within the full authorized spectrum of the 
blocks. For example, a single incumbent C or D Block base station with 
an emission bandwidth of 1 megahertz could transmit with the full 50 kW 
ERP, but no other emissions would be permitted in the remaining 5 
megahertz of the block. This limit would also apply to the cumulative 
emissions of both licensees if a 6 megahertz incumbent or unauctioned 
unpaired block is disaggregated.
    27. In implementing this PSD approach to the power limits in both 
the Lower 700 MHz Band and the Upper 700 MHz Commercial Services Band, 
the FCC continues to remain concerned that transmissions at higher 
power levels could potentially cause interference to adjacent channel 
operations. To mitigate the potential for harmful interference to 
adjacent channel operations, the FCC requires the following. For Lower 
700 MHz Band licensees, if operating with a bandwidth of 1 megahertz or 
less and a transmitting power greater than 1 kW ERP non-rural or 2 kW 
ERP rural, or if operating with a bandwidth of more than 1 megahertz 
and a PSD greater than 1 kW/MHz ERP non-rural or 2 kW/MHz ERP rural, 
then that licensee must comply with the 3 mW/m\2\ PFD limit. Thus, for 
example, a non-rural licensee transmitting an 8 kW ERP signal in a 5-
megahertz bandwidth or a rural licensee transmitting a 4 kW ERP signal 
in a 1.25 megahertz bandwidth would have to satisfy the 3 mW/m\2\ PFD 
limit. However, a licensee transmitting an 800 watt ERP signal in a 200 
kilohertz bandwidth or a 4 kW ERP signal in a 5-megahertz bandwidth, or 
a rural licensee transmitting an 8 kW ERP signal in a 5-megahertz 
bandwidth, would not have to meet the PFD limit. Because the FCC wishes 
to remain especially vigilant regarding the potential for interference 
to public safety operations, it impose the following additional 
requirement on Commercial Services licensees operating in the Upper 700 
MHz Band. Specifically, all Upper 700 MHz Commercial Services Band 
licensees,

[[Page 27693]]

both rural and non-rural, transmitting signals at a power levels 
greater than 1 kW ERP, irrespective of bandwidth, must satisfy the 3 
mW/m\2\ PFD limit. Thus, for example, an Upper 700 MHz Commercial 
Services Band licensee transmitting a 4 kW ERP signal in a 5-megahertz 
bandwidth would have to meet the PFD limit.
(iv) Power Limit Issues in WT Docket No. 03-264
    28. The FCC will employ PSD for defining power limits in the 700 
MHz Band. The FCC has thus granted the second of CTIA's requests as it 
applies to the 700 MHz Commercial Services Bands. However, the FCC 
shall not apply to the 700 MHz Band CTIA's proposal to double power 
limits in the PCS and AWS-1 bands--i.e., a power increase that would 
apply in both rural and non-rural areas and would not be accompanied by 
a PFD limit. CTIA provides no justification for permitting an 
unrestricted doubling of power levels for the 700 MHz Commercial 
Services Bands, and the FCC finds no basis for adopting such limits for 
the band. Instead, as discussed above, the FCC is adopting rules for 
700 MHz Band licensees that will allow for a power limit of 1 kW/MHz 
ERP in non-rural areas and 2 kW/MHz ERP in rural areas.
    29. The FCC does, however, find merit in extending to the 700 MHz 
Commercial Services Band CTIA's proposal to use ``average,'' rather 
than ``peak'' power in measuring power levels. Although the use of 
``average'' power will effectively result in an increase in 700 MHz 
Band power levels for non-constant envelope technologies, such as CDMA 
and WCDMA, the ``average'' measurement approach is a more accurate 
measure of the interference potential for these technologies. The FCC 
finds that any effective increase in power that would result through 
the use of an ``average'' measurement approach will be modest, and in 
any event will be outweighed by the benefit of measuring today's 
technologies using a more realistic and appropriate technique.
    30. For purposes of clarifying the use of the ``average power'' 
measurement technique, the FCC makes the following determinations. 
First, the FCC concludes that the technique shall be made during a 
period of continuous transmission and be based on a measurement using a 
1 megahertz resolution bandwidth. Second, the FCC shall restrict the 
peak-to-average (``PAR'') ratio of the radiated signal to 13 dB. 
Limiting the PAR to 13 dB strikes a balance between enabling licensees 
to use modulation schemes with high PARs (such as OFDM) and protecting 
other licensees from high PAR transmissions. Parties seeking to employ 
the ``average power'' measurement technique should consult with the FCC 
Laboratory for guidance on the appropriate averaging method for the 
particular technology they plan to use.
(v) Other Technical Issues
    31. The FCC will retain the existing OOBE limits for commercial 
base stations operating in the Upper 700 MHz Commercial Services Band 
because it finds these restrictions provide sufficient and appropriate 
protection to 700 MHz public safety operations. The FCC also declines 
to impose any technical restrictions on Upper 700 MHz Commercial 
Services Band licensees to address potential IM interference to 700 MHz 
public safety operations. The FCC will, however, require Upper 700 MHz 
Commercial Services Band licensees and 700 MHz public safety entities, 
upon request from the other, to exchange information about their 
stations and systems. The FCC is adopting this requirement in order to 
limit the potential for IM interference to 700 MHz public safety mobile 
and portable devices from the transmissions of Upper 700 MHz Commercial 
Service Band base stations.
    32. With regard to the argument for the need for increased OOBE 
limits, the conclusion that the FCC's 76 +10 log P OOBE limit will 
result in interference to 700 MHz public safety operations is based on 
the assumption of a 65 dB site isolation figure in analyzing potential 
interference between commercial base stations and public safety mobile/
portable receivers. However, the FCC rejected this same premise in 
deciding not to adopt stricter OOBE limits in the Upper 700 MHz Band 
Third MO&O. In the 800 MHz Report and Order, the FCC decided not adopt 
stricter OOBE limits to protect 800 MHz public safety operations. The 
FCC stated, as its rationale for not increasing the existing OOBE limit 
for the 800 MHz band, that the additional filtering needed to achieve 
proposed OOBE standards ``would add cost and complexity--but no 
benefit--to those cells in a system in which, because of their 
location, or otherwise, unacceptable OOBE interference would not 
occur'' and the FCC was therefore unwilling to ``impose stronger OOBE 
limits on every cell of every system in the country; particularly if 
only a handful of cells in a system might require them.'' The FCC 
continues to believe that any change to the OOBE limit required for 
commercial Upper 700 MHz Commercial Services Band base stations is 
unsupported.
(vi) 911/E911 Requirements
    33. The FCC concludes that Sec.  20.18(a) should be amended to 
apply 911/E911 requirements to all commercial mobile radio services 
(CMRS), including services licensed in the 700 MHz Commercial Services 
Band and the AWS-1 bands, to the same extent as they apply to wireless 
services currently listed in the scope provision of Sec.  20.18. Thus, 
CMRS providers must comply with the 911/E911 requirements solely to the 
extent that they ``[offer] real-time, two way switched voice service 
that is interconnected with the public switched network and utilize an 
in-network-switching facility which enables the provider to reuse 
frequencies and accomplish seamless hand-offs of subscriber calls'' 
(hereinafter, the ``Sec.  20.18(a) criteria''). The FCC will continue, 
however, to exclude MSS from Sec.  20.18 in conformity with the 
Commission's decision in the E911 Scope Order.
    34. The public interest generally requires wireless services 
meeting the Sec.  20.18(a) criteria to provide 911/E911 service, even 
if not expressly enumerated. The FCC has observed previously that ``911 
service is critical to our Nation's ability to respond to a host of 
crises,'' and that E911 in particular ``saves lives and property by 
helping emergency services personnel do their jobs more quickly and 
efficiently.'' The FCC also takes note of Congress's finding in the 
Ensuring Needed Help Arrives Near Callers Employing 911 Act of 2004 
(ENHANCE 911 Act) that ``for the sake of our Nation's homeland security 
and public safety, a universal emergency telephone number (911) that is 
enhanced with the most modern and state-of-the-art telecommunications 
capabilities possible should be available to all citizens in all 
regions of the Nation'' and that ``enhanced 911 is a high national 
priority.'' Accordingly, it is critical that mobile telephone services 
meeting the Sec.  20.18(a) criteria continue to offer 911 and E911 as 
they make use of new frequencies.
    35. The FCC further finds that commercial mobile radio services 
meeting the 20.18(a) criteria will also meet the four criteria set 
forth in the E911 Scope Order.\5\ In particular, the

[[Page 27694]]

FCC finds that these services are likely to compete with services 
provided pursuant to cellular, broadband PCS, or 800/900 MHz SMR 
licenses, and that subscribers will have similar expectations of 
emergency access from services meeting the Sec.  20.18(a) criteria 
regardless of what frequencies carriers are using to provide them. 
Indeed, the FCC has found that for many Americans, ``the ability to 
call for help in an emergency is the principal reason they own a 
wireless phone.'' This should be no less true for a consumer calling 
from a phone utilizing 700 MHz, AWS, or any other spectrum. Further, 
the FCC finds no support in the record, and consider it unlikely, that 
additional, terrestrial-based commercial mobile radio services meeting 
all of the criteria of Sec.  20.18(a) will present any special 
technical obstacles, as compared to currently deployed services, that 
would warrant modifications of the 911/E911 requirements. To the extent 
that such obstacles become apparent as new services are established, 
appropriate modifications can be considered at that time. The FCC 
therefore agrees with the commenters that the extension of the 911/E911 
requirements under Sec.  20.18 to all commercial mobile radio services 
meeting the Sec.  20.18(a) criteria is justified by the interest in 
competitive neutrality as well as by the critical public safety 
benefits of 911/E911.
---------------------------------------------------------------------------

    \5\Specifically, the Commission determined that it would 
consider whether (1) the service offers real-time, two-way voice 
service that is interconnected to the pubic 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. See Revision of the 
Commission's Rules to Ensure Compatibility with Enhanced 911 
Emergency Calling Systems, CC Docket 94-102, IB Docket No. 99-67, 
Report and Order and Further Notice of Proposed Rulemaking, 18 FCC 
Rcd 25340, 25347 ] 18 (2003) (``E911 Scope Order'').
---------------------------------------------------------------------------

(vii) Hearing Aid-Compatible Wireless Handsets
    36. For reasons similar to those discussed in the E911 section 
above, the FCC determines that all digital CMRS providers, including 
providers of such services in the 700 MHz Commercial Services Band and 
the AWS-1 and BRS/EBS bands, should be subject to hearing aid 
compatibility requirements under Sec.  20.19 to the extent they offer 
real-time, two-way switched voice or data service that is 
interconnected with the public switched network and utilizes an in-
network switching facility that enables the provider to reuse 
frequencies and accomplish seamless hand-offs of subscriber calls. In 
addition, manufacturers of wireless handsets that are capable of 
providing such service also should be made subject to the applicable 
requirements of Sec.  20.19. As discussed below, however, the existence 
of an established, applicable technical standard is a statutory 
requirement for imposing hearing aid compatibility requirements. 
Because no such standard currently exists for any services beyond the 
broadband PCS, Cellular, and certain SMR bands, the FCC cannot 
presently impose hearing aid compatibility requirements on additional 
services. The FCC does commit to bringing all digital CMRS within the 
scope of the Sec.  20.19 requirements as appropriate technical 
standards are developed, and we take steps to promote the development 
of these technical standards, as discussed below. In particular, the 
FCC establishes a specific timetable for the development of the 
necessary technical standards for those new services that have 
governing service rules in place. The FCC amends the rule to reflect 
these determinations, including its decision that hearing aid 
compatibility requirements will apply to any CMRS to the extent that it 
meets the criteria discussed above and there is an established 
technical standard for hearing aid compatibility applicable to the 
relevant handsets.
    37. Extending hearing aid compatibility requirements to services 
beyond those currently covered will ensure that comparable service 
providers and manufacturers will be required to comply with similar 
hearing aid-compatible handset requirements regardless of the frequency 
bands on which they operate. Further, end users will be able to expect 
the full range of functionality found today in mobile phones without 
having to know the technical details, such as the frequencies on which 
their phones operate. Moreover, by clarifying the applicability of the 
hearing aid compatibility rules to these manufacturers and service 
providers now, the FCC enables them to begin planning to incorporate 
hearing aid compatibility compliance into their operations at the 
earliest possible stage, which should also promote a more efficient 
implementation. The FCC also ensures that the necessary parties become 
involved in ongoing discussions among the Commission, service 
providers, standards bodies, and industry representatives to develop 
additional standards for hearing aid compatibility measurement methods 
and parametric requirements.
    38. The FCC concludes that any CMRS digital service that meets the 
Sec.  20.19(a) criteria for inclusion should be subject to hearing aid 
compatibility requirements. The FCC declines, however, to impose 
hearing aid compatibility obligations on other services and bands at 
this time. When the FCC imposed the existing hearing aid compatibility 
obligations on handset manufacturers and service providers in 2003, it 
simultaneously approved ANSI C63.19 as an established technical 
standard applicable to the services covered by the rule. Indeed, the 
FCC noted that the existence of an established technical standard was a 
statutory requirement for imposing hearing aid compatibility, and 
further found that this statutory requirement was ``[f]undamental'' to 
the determination of whether to impose hearing aid compatibility on 
wireless devices. The FCC therefore finds that an applicable technical 
standard should be in place when hearing aid compatibility obligations 
are imposed in the 700 MHz Commercial Services Band and other bands.
    39. As noted above, none of the available versions of the current 
hearing aid compatibility standard cover services in the 700 MHz 
Commercial Services Band or the AWS-1 or BRS/EBS bands. Nor do they 
provide tests for some of the technologies anticipated in these bands, 
such as WiMAX. HIA argues that the ANSI C63.19-2006 standard for the 
800 MHz band provides an appropriate framework to measure performance 
in the 700 MHz Band for purposes of determining hearing aid 
compatibility, but the record does not establish that the existing 
standard can be extended to that band without modifications or 
amendments. Indeed, HIA concedes that modifications to the standard may 
be necessary, and the Hearing Loss Association of America (HLAA) also 
supports this conclusion, noting that changes to the standard will be 
necessary to accommodate emerging technologies. Accordingly, the FCC 
concludes that it cannot extend specific hearing aid compatibility 
obligations to emerging bands and services until specific standards 
that establish the hearing aid compatibility measurement methods and 
parametric requirements for these additional services' and bands' 
devices are developed.
    40. The FCC will continue to monitor progress to make sure that the 
adoption of such standards proceeds in a timely manner. If no standards 
have been adopted within 24 months, the FCC will consider alternative 
means to implement compatibility requirements, including whether to 
develop new metrics for compliance entirely and/or whether to extend 
the C63.19-2006 standard for the 800 MHz Band into the 700 MHz 
Commercial Services Band, as HIA suggests. The FCC will not at this 
time establish a schedule for future action regarding bands other than 
the current 27.1(b) bands because it does not appear to be possible to 
develop

[[Page 27695]]

compatibility standards in the absence of service rules. The FCC also 
notes that there is little or no discussion in the record of extending 
hearing aid compatibility beyond the 700 MHz Commercial Services Band. 
The FCC will, however, pursue appropriate action as the nature of 
services in new bands becomes more defined or we find that an 
applicable standard has been or can be developed.

B. 700 MHz Guard Bands

    41. The FCC replaces the Guard Band Manager regime in favor of the 
spectrum leasing policies and rules adopted in the Secondary Markets 
proceeding, and removes certain use and eligibility restrictions 
regarding licensee operations and leasing to affiliates to encourage 
the most effective and efficient use of the Guard Bands spectrum. While 
the FCC seeks to provide licensees and spectrum lessees with greater 
latitude and remove regulatory barriers where possible, it retains the 
existing Guard Band Manager coordination requirements.
1. Adoption of Secondary Markets Spectrum Leasing Rules
    42. Among the FCC's key public interest objectives is to ensure 
that spectrum is put to its most efficient and effective use, and the 
FCC has increasingly granted technical and operational flexibility to 
its licensees to enable them to achieve that goal when it is consistent 
with preventing unacceptable interference. In adopting the Secondary 
Markets spectrum leasing policies and rules, the FCC accommodated the 
demand for significantly broader access to licensed spectrum by 
enabling a wide array of facilities-based providers to enter into 
spectrum leasing arrangements with spectrum users. These rules provided 
licensees with greater ability and incentive to make unused spectrum 
available to third parties, and thus promoted the provision of new and 
diverse services and applications. Third parties that could benefit 
from such spectrum leasing arrangements may include current spectrum 
operators requiring additional spectrum to meet customer needs over 
either the short-or long-term, new entrants seeking to provide a niche 
service and serve a limited area or narrowly targeted end-user market, 
small businesses trying to deliver services in rural communities, or 
entities unable or unwilling to participate in spectrum auctions or 
that otherwise do not have a license through which they can access 
spectrum to meet consumer or internal operational needs. By adopting 
the Secondary Markets spectrum leasing model, the FCC sought to 
establish spectrum leasing policies that allow licensees and spectrum 
lessees significant flexibility to enter into leasing arrangements that 
best meet their respective business needs and enable more efficient use 
of spectrum.
    43. The FCC agrees with commenters that the Secondary Markets 
spectrum leasing model may be more effective than the existing band 
manager rules in accomplishing the Commission's goals of permitting the 
efficient and intensive use of spectrum while protecting public safety 
operations from harmful interference. Although the FCC sought to 
provide appropriate incentives to encourage greater participation in 
band manager leasing arrangements, the Guard Band Managers appear to 
have had limited success in negotiating spectrum user agreements with 
third parties. In contrast, the steadily increasing number of spectrum 
leasing arrangements in the other Wireless Radio Services reflects the 
growing use and acceptance of Secondary Markets spectrum leasing 
policies by wireless providers and spectrum lessees as an effective 
method to make spectrum more readily available to additional spectrum 
users. Since the Secondary Markets spectrum leasing procedures went 
into effect in February 2004, licensees and spectrum lessees have 
entered into approximately 1,200 spectrum leasing arrangements.
    44. Accordingly, the FCC determines that providing Guard Bands 
licensees the additional flexibility offered by the Secondary Markets 
spectrum leasing regime would enhance spectrum usage in the 700 MHz 
Guard Bands. Specifically, in order to provide maximum flexibility, 
Guard Band licensees now will have the option of entering into both 
spectrum manager leasing and de facto transfer leasing arrangements. By 
permitting Guard Band licensees and spectrum lessees to choose between 
the two different options, the FCC will afford licensees and spectrum 
lessees significant flexibility to craft the type of leasing 
arrangement that best matches their particular needs and the demands of 
the marketplace. This flexibility could, in turn, help achieve fuller 
utilization of the spectrum. For example, adopting rules that permit 
Guard Band licensees to participate in de facto transfer leasing--in 
which primary responsibility for compliance with statutory and 
regulatory policies and rules is transferred from licensees to spectrum 
lessees--could encourage a licensee to enter into a leasing agreement 
that might otherwise be unattractive due to the level of operational 
oversight necessary to ensure compliance with the FCC's rules in a 
specific case.
    45. The FCC emphasizes, however, that by affording 700 MHz Guard 
Band licensees greater flexibility, particularly in the de facto 
transfer leasing context, it is not minimizing in any way the 
requirement that these licensees must ensure that adjacent public 
safety operations are protected from harmful interference. Protection 
of 700 MHz public safety operations from interference remains the 
primary goal of the Commission's policies relating to the 700 MHz Guard 
Bands. The FCC agrees with comments that the Secondary Markets spectrum 
leasing rules provide sufficient mechanisms to ensure non-interference 
with spectrum users in the adjacent 700 MHz Public Safety Band. As 
noted by the BOP proponents, the Secondary Markets spectrum leasing 
rules provide protection equivalent to the band manager rules.
    46. Although the FCC recognizes that the additional flexibility 
afforded by the de facto transfer spectrum leasing option transfers the 
primary responsibility for ensuring interference protection to the 
spectrum lessee, the FCC concludes that public safety users will still 
be protected from interference under the Secondary Markets spectrum 
leasing rules. Under this option, 700 MHz Guard Band licensees continue 
to retain some responsibility for operations encompassed under their 
license authorizations, and may be held responsible in cases of ongoing 
violation or other egregious lessee behavior for which licensees have, 
or should have, knowledge. More importantly, although the FCC expects 
Guard Band licensees to continue to exercise some oversight of its 
lessees, the Commission retains direct authority to pursue remedies 
against lessees under Sec.  503(b) of the Act. Spectrum lessees, 
whether under a spectrum manager leasing arrangement or a de facto 
transfer leasing arrangement, must strictly comply with the technical 
restrictions of the band, and must expressly agree to comply with all 
applicable Commission rules as a condition of the spectrum leasing 
arrangement. Regardless of whether the licensee or spectrum lessee 
holds primary responsibility for compliance with FCC rules, the FCC 
maintains the ability to take direct and swift action to enforce 
compliance with its rules.
    47. The FCC concludes that it should apply our Secondary Markets 
spectrum leasing rules to the 700 MHz Guard Bands service. By doing so, 
the FCC will facilitate more efficient use of the spectrum by licensees 
and spectrum

[[Page 27696]]

lessees, and will produce a more market-driven system that should 
better meet the needs of the public without compromising the FCC's 
other core public interest goals--specifically, ensuring that public 
safety operations are protected from harmful interference. Although the 
FCC sought comment on whether we should permit licensees to choose 
between the existing Guard Band Managers regime or the Secondary 
Markets spectrum leasing rules, the FCC concludes that it is 
unnecessary to also allow licensees the ability to choose between the 
two leasing models, and thus replace the Guard Band Manager leasing 
regime with the Secondary Markets spectrum leasing policies and rules. 
Application of the Secondary Markets rules to all 700 MHz Guard Bands 
licensees will provide significant additional flexibility and ensure 
that these licensees are treated similarly to other Wireless Radio 
Services holding exclusive use licenses and leasing spectrum usage 
rights.
2. Use and Operational Flexibility
    48. In addition to providing licensees and other spectrum users 
additional flexibility provided under our general Secondary Markets 
spectrum leasing rules, the FCC concludes that other changes to the 700 
MHz Guard Bands rules should be made to promote more efficient and 
effective use of this spectrum.
    49. Band Manager Status. In creating the 700 MHz Guard Bands 
service, the FCC designated Guard Band Managers as a new class of 
commercial licensee engaged solely in leasing spectrum to third 
parties. The FCC agrees with commenters that the FCC should re-evaluate 
its decision to limit the ability of licensees to act as service 
providers. The band manager rules and policies that specify that a 
Guard Band licensee may only act as a spectrum manager unduly restrict 
the ability of parties to use the spectrum, and may preclude the 
deployment of services that might otherwise be offered. Depending upon 
the circumstances, it may be that the Guard Band licensee itself is 
best positioned to make maximum use of the Guard Bands spectrum. 
Precluding a licensee from operating as a service provider may prevent 
access by parties that could make actual use of the band, and hinders, 
rather than facilitates, the efficient use of the spectrum. The FCC 
believes that, as long as a 700 MHz Guard Band licensee can fulfill its 
primary function of effectively managing its licensed spectrum and 
ensuring that 700 MHz public safety operations are protected from 
interference, there is little reason to preclude that licensee from 
also providing service. Accordingly, the FCC will revise its rules to 
permit licensees to operate as wireless service providers. To the 
extent that a licensee chooses to provide service, the FCC requires 
that the licensee update their license information if they plan to 
switch their regulatory status, and the FCC notes that licensees will 
be responsible for meeting all other obligations relating to their 
change in status.
    50. Restrictions on Leasing to Affiliates. Similarly, the FCC 
concludes that it is in the public interest to remove the current 
restriction precluding any licensee from leasing more than 49.9 percent 
of its licensed spectrum to affiliates. As in the case of the policy 
precluding licensees from providing service, the FCC believes that its 
rule requiring that licensees lease the predominant amount of their 
spectrum to non-affiliates prevents entities from maximizing use of the 
spectrum, and hinders the provision of service to end users. This 
restriction also may prevent licensees and lessees from taking 
advantage of new technologies. To the extent that the FCC determines 
that broadband deployment is permissible in one or both of the 700 MHz 
Guard Bands, the FCC's restrictions that prevent Guard Band Managers 
from providing service or from leasing any more than 49.9 percent of 
its license to affiliates would hinder the ability of Guard Band 
licensees or their affiliates to deploy such service. Restrictions 
regarding use by the licensee or its affiliates may prevent entities 
from optimizing the use of the spectrum or entering into Secondary 
Markets spectrum leasing agreements with adjacent licensees that are 
not similarly restricted. Accordingly, the FCC eliminates this 
restriction.
    51. Other Lease Restrictions. Under existing policies, 700 MHz 
Guard Band licensees are prohibited from imposing unduly restrictive 
requirements in the spectrum user agreements regarding access to, and 
use of, spectrum. In adopting these band manager rules, the FCC noted 
that Guard Band Managers would be afforded a considerable amount of 
latitude in determining the most efficient way to manage their 
spectrum. The FCC concluded, however, that it was necessary to ensure 
that band managers did not impose unreasonable terms and conditions on 
lessees or end users. Although these restrictions were aimed at 
ensuring that band managers do not engage in unreasonable practices, 
the existing rules may adversely affect the ability of Guard Band 
licensees to negotiate with spectrum users regarding otherwise standard 
lease provisions, such as mandating the use of a particular technology, 
that other wireless licensees are permitted to negotiate. The FCC notes 
that our Secondary Markets spectrum leasing rules do not have similar 
restrictions and its rules generally permit parties to determine the 
precise terms and provisions of their spectrum lease agreements. As 
noted above, the FCC is adopting for the Guard Bands the same spectrum 
leasing policies set forth in the Secondary Markets proceeding. The FCC 
believes that these policies provide sufficient incentives for 
licensees to lease spectrum usage rights, while also providing 
licensees with the ability to establish appropriate operational 
guidelines with spectrum lessees that protect public safety licensees 
from interference. As such, the FCC eliminates this requirement.
    52. Coordination Requirement. The FCC requires Guard Band Managers 
to notify public safety frequency coordinators in the 700 MHz Public 
Safety Band, as well as adjacent-area Guard Band Managers, of the 
technical parameters of any site constructed in the Guard Band 
Manager's license area. Guard Band Managers must provide such 
identifying information as the frequencies coordinated, antenna height 
and location, and effective radiated power. The FCC does not change the 
coordination requirements for Guard Band licensees currently contained 
in Sec.  27.601(d)(1) of its rules. The FCC notes that it imposed 
coordination requirements to minimize the potential for interference, 
and the FCC reiterates that the primary purpose of the Guard Bands is 
to prevent interference to adjacent public safety operations. Absent 
information indicating that its coordination requirements do not serve 
to prevent interference, the FCC concludes that we should retain the 
coordination requirements set forth in the rule. Given that the FCC is 
adopting the Secondary Markets spectrum leasing rules for the Guard 
Band service, the FCC clarifies how these coordination requirements 
will work in the context of spectrum leasing arrangements. To the 
extent a licensee enters into a spectrum manager lease arrangement, it 
retains de facto control of the spectrum and primary responsibility for 
ensuring compliance with the rules. Accordingly, for this type of 
spectrum leasing arrangement, the licensee is required to carry out 
these coordination responsibilities. If, however, a licensee enters 
into a de facto transfer leasing arrangement, the coordination and 
notification tasks set forth in Sec.  27.601 of

[[Page 27697]]

the FCC's rules (as well as other responsibilities associated with de 
facto control) are, upon FCC approval, transferred from the licensee to 
the spectrum lessee. In this latter type of arrangement, the FCC notes 
that although the spectrum lessee becomes primarily responsible for 
complying with the required frequency coordination responsibilities 
under the license authorization, the FCC will continue to hold 
licensees responsible for the failure of a spectrum lessee to comply 
with the FCC's frequency coordination requirements.

Final Regulatory Flexibility Act Analysis

    53. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA),\6\ separate Initial Regulatory Flexibility Analyses 
(IRFA) were incorporated in the 700 MHz Commercial Services Notice in 
WT Docket No. 06-150, CC Docket No. 94-102, and WT Docket No. 01-309; 
the 700 MHz Guard Band Notice, WT Docket Nos. 06-169 and 96-86; and the 
700 MHz Public Safety Notice, PS Docket No. 06-229 and WT Docket No. 
96-86.\7\ The Commission sought written public comment on the proposals 
in these dockets, including comment on the IRFA. This Final Regulatory 
Flexibility Analysis (FRFA) conforms to the RFA.\8\
---------------------------------------------------------------------------

    \6\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA), Pub. L. No. 104-121, Title II, 110 Stat. 857 (1996).
    \7\ See Service Rules for the 698-749, 747-762 and 777-792 MHz 
Bands, WT Docket No. 06-150, Revision of the Commission's Rules to 
Ensure Compatibility with Enhanced 911 Emergency Calling Systems, CC 
Docket No. 94-102, and Sec.  68.4(a) of the Commission's Rules 
Governing Hearing Aid-Compatible Telephones, WT Docket No. 01-309, 
Notice of Proposed Rule Making, Fourth Further Notice of Proposed 
Rule Making, and Second Further Notice of Proposed Rule Making, 21 
FCC Rcd 9345, 9394 (2006) (``700 MHz Commercial Services Notice''); 
Former Nextel Communications, Inc. Upper 700 MHz Guard Band Licenses 
and Revisions to Part 27 of the Commission's Rules, Development of 
Operational, Technical and Spectrum Requirements for Meeting 
Federal, State and Local Public Safety Communications Requirements 
Through the Year 2010, WT Docket Nos. 06-169 and 96-86, Notice of 
Proposed Rule Making, 21 FCC Rcd 10413, 10440 (2006) (``700 MHz 
Guard Bands Notice''); Implementing a Nationwide, Broadband, 
Interoperable Public Safety Network in the 700 MHz Band, PS Docket 
06-229, Development of Operational, Technical and Spectrum 
Requirements for Meeting Federal, State and Local Public Safety 
Communications Requirements Through the Year 2010, WT Docket No. 96-
86, Ninth Notice of Proposed Rule Making, 21 FCC Rcd 14837, 14853 
(2006) (``700 MHz Public Safety Ninth Notice'').
    \8\ See 5 U.S.C. 604.
---------------------------------------------------------------------------

    54. Although Sec.  213 of the Consolidated Appropriations Act of 
2000 provides that the RFA shall not apply to the rules and competitive 
bidding procedures for frequencies in the 746-806 MHz Band,\9\ the 
Commission 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 FRFA 
contains an analysis of this impact in connection with all spectrum 
that falls within the scope of this Report and Order, including 
spectrum in the 746-806 MHz Band.
---------------------------------------------------------------------------

    \9\ In particular, this exemption extends to the requirements 
imposed by Chapter 6 of Title 5, United States Code, Sec.  3 of the 
Small Business Act (15 U.S.C. 632) and Sec. Sec.  3507 and 3512 of 
Title 44, United States Code. Consolidated Appropriations Act 2000, 
Pub. L. No. 106-113, 113 Stat. 2502, Appendix E, Sec. 213(a)(4)(A)-
(B); see 145 Cong. Rec. H12493-94 (Nov. 17, 1999); 47 U.S.C.A. 337 
note at Sec. 213(a)(4)(A)-(B).
---------------------------------------------------------------------------

A. Need for, and Objectives of, the Rules

    55. In the Report and Order, with regard to commercial services, 
the Commission takes a number of steps to facilitate access to spectrum 
and the provision of service to consumers, especially those in rural 
areas, and to simplify and clarify our rules related to the commercial 
700 MHz spectrum. The Commission decides that it will auction the 
Commercial Services licenses across a mix of geographic service area 
definitions. The Commission also extends the date for initial license 
terms from January 15, 2015, to the end of the DTV transition on 
February 17, 2019. With regard to radiated power limits, the Commission 
generally adopts a power spectral density model, with certain 
limitations, to provide greater operational flexibility to licensees 
operating at wider bandwidths, and provides for higher radiated power 
levels for those 700 MHz licensees operating in rural areas under the 
current 1 kW per MHz power limit. The Commission also modifies the 911/
E911 rules to remove the service- and band-specific limitations on the 
applicability of those requirements. Further, the Commission finds that 
all digital CMRS providers, including providers in the 700 MHz, 
Advanced Wireless Services, and the Broadband Radio Service/Educational 
Broadband Service bands, along with manufacturers of handsets capable 
of providing such services, should be subject to the Commission's 
hearing aid compatibility requirements to the extent that a service 
satisfies the scope provision the current rules.
    56. The Commission also adopts rules to enhance spectrum usage in 
the 700 MHz Guard Bands by replacing the Guard Band Manager spectrum 
leasing regime with the Secondary Markets spectrum leasing policies and 
rules. Guard bands licensees will have the option of entering into de 
jure and de facto transfer leasing arrangements. By permitting Guard 
Band licensees and spectrum lessees to choose between the two different 
options, the Commission affords licensees and spectrum lessees 
significant flexibility to craft the type of leasing arrangement that 
best matches their particular needs and the demands of the marketplace.

B. Legal Basis

    57. The authority for the actions taken in this Report and Order is 
contained in Sec. Sec.  1, 4(i), 7, 10, 201, 202, 208, 214, 215, 
222(d)(4)(A)-(C), 222(f), 222(g), 222(h)(1)(A), 222(h)(4)-(5), 
251(e)(3), 301, 303, 307, 308, 309, 310, 311, 315, 316, 317, 324, 331, 
332, 336, 337 and 710, of the Communications Act of 1934, as amended, 
47 U.S.C. Sec. Sec.  151, 154(i), 157, 160, 201, 202, 208, 214, 215, 
222(d)(4)(A)-(C), 222(f), 222(g), 222(h)(1)(A), 222(h)(4)-(5), 
251(e)(3), 301, 303, 307, 308, 309, 310, 311, 315, 317, 324, 331, 332, 
336, 337, and 610.

C. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA

    58. No comments specifically addressed the IRFAs from any of the 
respective proceedings. We have nonetheless addressed small entity 
issues found in comments in this FRFA.

D. Description and Estimate of the Number of Small Entities to Which 
the Rules Will Apply

    59. 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.\10\ The RFA generally 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \11\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\12\ A ``small business concern'' is one 
which: (1) Is independently owned and operated; (2) is not dominant in 
its field

[[Page 27698]]

of operation; and (3) satisfies any additional criteria established by 
the Small Business Administration (SBA).\13 \
---------------------------------------------------------------------------

    \10\ 5 U.S.C. 604(a)(3).
    \11\ 5 U.S.C. 601(6).
    \12\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small-business concern'' in the Small Business Act, 15 U.S.C. 
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a 
small business applies ``unless an agency, after consultation with 
the Office of Advocacy of the Small Business Administration and 
after opportunity for public comment, establishes one or more 
definitions of such term which are appropriate to the activities of 
the agency and publishes such definition(s) in the Federal 
Register.''
    \13\ 15 U.S.C. 632.
---------------------------------------------------------------------------

    60. Governmental Entities. The term ``small governmental 
jurisdiction'' is defined as ``governments of cities, towns, townships, 
villages, school districts, or special districts, with a population of 
less than fifty thousand.'' \14\ As of 2002, there were approximately 
87,525 governmental jurisdictions in the United States.\15\ This number 
includes 38,967 county governments, municipalities, and townships, of 
which 37,373 (approximately 95.9%) have populations of fewer than 
50,000, and of which 1,594 have populations of 50,000 or more. Thus, 
the Commission estimates the number of small governmental jurisdictions 
overall to be 85,931 or fewer.
---------------------------------------------------------------------------

    \14\ 5 U.S.C. 601(5).
    \15\ U.S. Census Bureau, Statistical Abstract of the United 
States: 2006, Sec.  8, pages 272-273, Tables 415 and 417.
---------------------------------------------------------------------------

    61. In the following paragraphs, the Commission further describes 
and estimates the number of small entity licensees that may be affected 
by the rules the Commission adopts in this Report and Order. The rule 
changes affect Upper 700 MHz and Lower 700 MHz Band licensees in the 
698-746, 747-762, and 777-792 MHz spectrum bands, as well as all 
commercial mobile radio services (CMRS) with respect to 911/E911 
requirements adopted in this Report and Order.
    62. Since this Report and Order applies to multiple services, this 
FRFA 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 FRFA provides information that 
describes 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 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 a transfer of control application that 
involves unjust enrichment issues.
Part 27 Miscellaneous Wireless Communications Services (MWCS)
    63. 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.\16\ The SBA has approved these definitions.\17\ 
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.
---------------------------------------------------------------------------

    \16\ Amendment of the Commission's Rules to Establish Part 27, 
the Wireless Communications Service (WCS), Report and Order, 12 FCC 
Rcd 10785, 10879 ] 194 (1997).
    \17\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, Federal 
Communications Commission, from Aida Alvarez, Administrator, Small 
Business Administration, dated December 2, 1998.
---------------------------------------------------------------------------

    64. 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.\18\ 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.\19\ 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.\20\ SBA approval of these definitions is not required.\21\ 
An auction of 52 Major Economic Area (MEA) licenses commenced on 
September 6, 2000, and closed on September 21, 2000.\22\ 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.\23\
---------------------------------------------------------------------------

    \18\ See Service Rules for the 746-764 MHz Bands, and Revisions 
to Part 27 of the Commission's Rules, Second Report and Order, 15 
FCC Rcd 5299 (2000).
    \19\ Id. at 5343108.
    \20\ Id.
    \21\ Id. At 5343 ] 108 n.246 (for the 746-764 MHz and 776-704 
MHz bands, the Commission is exempt from 15 U.S.C. 632, which 
requires Federal agencies to obtain Small Business Administration 
approval before adopting small business size standards).
    \22\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders 
Announced,'' Public Notice, 15 FCC Rcd 18026 (2000).
    \23\ See ``700 MHz Guard Bands Auctions Closes: Winning Bidders 
Announced,'' Public Notice, 16 FCC Rcd 4590 (WTB 2001).
---------------------------------------------------------------------------

    65. Upper 700 MHz Band Licenses. The Commission released a Report 
and Order authorizing service in the Upper 700 MHz band.\24\ An auction 
for these licenses, previously scheduled for January 13, 2003, was 
postponed.\25\
---------------------------------------------------------------------------

    \24\ Service Rules for the 746-764 and 776-794 MHz Bands, and 
Revisions to Part 27 of the Commission's Rules, Second Memorandum 
Opinion and Order, 16 FCC Rcd 1239 (2001).
    \25\ See ``Auction of Licenses for 747-762 and 777-792 MHz Bands 
(Auction No. 31) Is Rescheduled,'' Public Notice, 16 FCC Rcd 13079 
(WTB 2003).
---------------------------------------------------------------------------

    66. 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.\26\ 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.\27\ 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.\28\ 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.\29\ The SBA 
has approved these small size standards.\30\ 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

[[Page 27699]]

small business, very small business or entrepreneur status and won a 
total of 329 licenses.\31\ 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.\32\ 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.\33\
---------------------------------------------------------------------------

    \26\ See Reallocation and Service Rules for the 698-746 MHz 
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC 
Rcd 1022 (2002).
    \27\ Id. at 1087-88 ] 172.
    \28\ Id.
    \29\ Id. at 1088 ] 173.
    \30\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
August 10, 1999.
    \31\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice, 
17 FCC Rcd 17272 (WTB 2002).
    \32\ See ``Lower 700 MHz Band Auction Closes,'' Public Notice, 
18 FCC Rcd 11873 (WTB 2003).
    \33\ Id.
---------------------------------------------------------------------------

    67. 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.\34\ 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.'' \35\ 
Correspondingly, the Commission adopted a bidding credit of 15 percent 
for ``small businesses'' and a bidding credit of 25 percent for ``very 
small businesses.'' \36\ 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.
---------------------------------------------------------------------------

    \34\ See Amendments to Parts 1, 2, 27 and 90 of the Commission's 
Rules to License Services in the 216-220 MHz, 1390-1395 MHz, 1427-
1429 MHz, 1429-1432 MHz, 1432-1435 MHz, 1670-1675 MHz, and 2385-2390 
MHz Government Transfer Bands, 17 FCC Rcd 9980 (2002) (Government 
Transfer Bands Service Rules Report and Order).
    \35\ See Service Rules Notice, 17 FCC Rcd at 2550-51 ]] 144-146. 
To be consistent with the size standard of ``very small business'' 
proposed for the 1427-1432 MHz band for those entities with average 
gross revenues for the three preceding years not exceeding $3 
million, the Service Rules Notice proposed to use the terms 
``entrepreneur'' and ``small business'' to define entities with 
average gross revenues for the three preceding years not exceeding 
$40 million and $15 million, respectively. Because the Commission 
has not adopted a $3 million size standard for the 1427-1432 MHz 
band, it instead uses the terms ``small business'' and ``very small 
business'' to define entities with average gross revenues for the 
three preceding years not exceeding $40 million and $15 million, 
respectively.
    \36\ See Reallocation of the 216-220 MHz, 1390-1395 MHz, 1427-
1429 MHz, 1429-1432 MHz, 1432-1435 MHz, 1670-1675 MHz, and 2385-2390 
MHz Government Transfer Bands, Notice of Proposed Rulemaking, 17 FCC 
Rcd 2500, 2550-51 ]] 144-146 (Government Transfer Bands Service 
Rules Notice). To be consistent with the size standard of ``very 
small business'' proposed for the 1427-1432 MHz band for those 
entities with average gross revenues for the three preceding years 
not exceeding $3 million, the Government Transfer Bands Service 
Rules Notice proposed to use the terms ``entrepreneur'' and ``small 
business'' to define entities with average gross revenues for the 
three preceding years not exceeding $40 million and $15 million, 
respectively. Because the Commission is not adopting small business 
size standards for the 1427-1432 MHz band, it instead uses the terms 
``small business'' and ``very small business'' to define entities 
with average gross revenues for the three preceding years not 
exceeding $40 million and $15 million, respectively.
---------------------------------------------------------------------------

    68. 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.\37\ The AWS-1 
Report and Order defines a ``small business'' as an entity with average 
annual gross revenues for the 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.
---------------------------------------------------------------------------

    \37\ Service Rules for Advanced Wireless Services in the 1.7 GHz 
and 2.1 GHz Bands, WT Docket No. 02-353, Report and Order, 18 FCC 
Rcd 25162 (2003) (AWS-1 Report and Order).
---------------------------------------------------------------------------

    69. 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).\38\ 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.\39\ 
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.\40\ The SBA has approved of this 
standard.\41\ The MDS auction resulted in 67 successful bidders 
obtaining licensing opportunities for 493 Basic Trading Areas 
(BTAs).\42\ 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.\43\
---------------------------------------------------------------------------

    \38\ Amendment of Parts 21 and 74 of the Commission's Rules with 
Regard to Filing Procedures in the Multipoint Distribution Service 
and in the Instructional Television Fixed Service and Implementation 
of Sec.  309(j) of the Communications Act--Competitive Bidding, MM 
Docket No. 94-131 and PP Docket No. 93-253, Report and Order, 10 FCC 
Rcd 9589, 9593 ] 7 (1995) (MDS Auction R&O).
    \39\ See Amendment of Parts 1, 21, 73, 74 and 101 of the 
Commission's Rules to Facilitate the Provision of Fixed and Mobile 
Broadband Access, Educational and Other Advanced Services in the 
2150-2162 and 2500-2690 MHz Bands, Report and Order and Further 
Notice of Proposed Rulemaking, 19 FCC Rcd 14165 (2004) (BRS/EBS 
Report and Order and BRS/EBS Further Notice, respectively).
    \40\ 47 CFR 21.961(b)(1).
    \41\ See Letter to Margaret Wiener, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, Federal 
Communications Bureau, from Gary Jackson, Assistant Administrator 
for Size Standards, Small Business Administration, dated Mar. 20, 
2003 (noting approval of $40 million size standard for MDS auction).
    \42\ Basic Trading Areas (BTAs) were designed by Rand McNally 
and are the geographic areas by which MDS was auctioned and 
authorized. See MDS Auction R&O, 10 FCC Rcd at 9608 ] 34.
    \43\ 47 U.S.C. 309(j). Hundreds of stations were licensed to 
incumbent MDS licensees prior to implementation of Sec.  309(j) of 
the Communications Act of 1934, 47 U.S.C. 309(j). For these pre-
auction licenses, the applicable standard is SBA's small business 
size standard for ``other telecommunications'' (annual receipts of 
$12.5 million or less). See 13 CFR 121.201, NAICS code 517910.
---------------------------------------------------------------------------

Additional Wireless Radio Services (WRS)
    70. Cellular Licensees. The SBA has developed a small business size 
standard for small businesses in the category ``Cellular and Other 
Wireless Telecommunications.'' \44\ Under that SBA category, a business 
is small if it has 1,500 or fewer employees.\45\ 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.\46\ Of this total, 1,378 firms had 
employment of 999 or fewer employees, and 19 firms had employment of 
1,000 employees or more.\47\ Thus, under this category and

[[Page 27700]]

size standard, the majority of firms can be considered small.
---------------------------------------------------------------------------

    \44\ 13 CFR 121.201, North American Industry Classification 
System (NAICS) code 517212.
    \45\ Id.
    \46\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 5, NAICS code 517212 (issued Nov. 2005).
    \47\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is for firms with ``1000 
employees or more.''
---------------------------------------------------------------------------

    71. 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.\48\ 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.\49\ Of 
this total, 1,378 firms had employment of 999 or fewer employees, and 
19 firms had employment of 1,000 employees or more.\50\ Thus, under 
this category and size standard, the majority of firms can be 
considered small.
---------------------------------------------------------------------------

    \48\ 13 CFR 121.201, NAICS code 517212.
    \49\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 5, NAICS code 517212 (issued Nov. 2005).
    \50\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is for firms with ``1000 
employees or more.''
---------------------------------------------------------------------------

    72. 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.\51\ 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.\52\ 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.\53\ The SBA has approved these small 
size standards.\54\ Auctions of Phase II licenses commenced on 
September 15, 1998, and closed on October 22, 1998.\55\ 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.\56\ 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.\57\ 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.\58\
---------------------------------------------------------------------------

    \51\ Amendment of Part 90 of the Commission's Rules to Provide 
For the Use of the 220-222 MHz Band by the Private Land Mobile Radio 
Service, Third Report and Order, 12 FCC Rcd 10943, 11068-70 ]] 291-
295 (1997).
    \52\ Id. at 11068 ] 291.
    \53\ Id.
    \54\ See Letter to Daniel Phythyon, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
January 6, 1998.
    \55\ See generally ``220 MHz Service Auction Closes,'' Public 
Notice, 14 FCC Rcd 605 (WTB 1998).
    \56\ See ``FCC Announces It is Prepared to Grant 654 Phase II 
220 MHz Licenses After Final Payment is Made,'' Public Notice, 14 
FCC Rcd 1085 (WTB 1999).
    \57\ See ``Phase II 220 MHz Service Spectrum Auction Closes,'' 
Public Notice, 14 FCC Rcd 11218 (WTB 1999).
    \58\ See ``Multi-Radio Service Auction Closes,'' Public Notice, 
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------

    73. 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.\59\ 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.\60\ The SBA has approved this definition.\61\ 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.\62\ Fifty-seven companies claiming small business status won 
440 licenses.\63\ 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.\64\ 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.\65\ 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.'' \66\ Of these, 
the Commission estimates that 370 are small, under the SBA-approved 
small business size standard.\67\ The Commission estimates that the 
majority of private and common carrier paging providers would qualify 
as small entities under the SBA definition.
---------------------------------------------------------------------------

    \59\ Revision of Part 22 and Part 90 of the Commission's Rules 
to Facilitate Future Development of Paging Systems, Second Report 
and Order, 12 FCC Rcd 2732, 2811-2812 ]] 178-181 (Paging Second 
Report and Order); see also Revision of Part 22 and Part 90 of the 
Commission's Rules to Facilitate Future Development of Paging 
Systems, Memorandum Opinion and Order on Reconsideration, 14 FCC Rcd 
10030, 10085-10088 ]] 98-107 (1999).
    \60\ Paging Second Report and Order, 12 FCC Rcd at 2811 ] 179.
    \61\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, from Aida 
Alvarez, Administrator, Small Business Administration, dated 
December 2, 1998.
    \62\ See ``929 and 931 MHz Paging Auction Closes,'' Public 
Notice, 15 FCC Rcd 4858 (WTB 2000).
    \63\ See id.
    \64\ See ``Lower and Upper Paging Band Auction Closes,'' Public 
Notice, 16 FCC Rcd 21821 (WTB 2002).
    \65\ See ``Lower and Upper Paging Bands Auction Closes,'' Public 
Notice, 18 FCC Rcd 11154 (WTB 2003).
    \66\ See Trends in Telephone Service, Industry Analysis 
Division, Wireline Competition Bureau, Table 5.3 (Number of 
Telecommunications Service Providers by Size of Business) (June 
2005).
    \67\ 13 CFR 121.201, NAICS code 517211.
---------------------------------------------------------------------------

    74. 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.\68\ For Block F, an additional small business size standard for 
``very small business'' was added and is defined as an entity

[[Page 27701]]

that, together with its affiliates, has average gross revenues of not 
more than $15 million for the preceding three calendar years.\69\ These 
small business size standards, in the context of broadband PCS 
auctions, have been approved by the SBA.\70\ 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 C Block 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.\71\ On March 23, 
1999, the Commission reauctioned 155 C, D, E, and F Block licenses; 
there were 113 small business winning bidders.\72\ On January 26, 2001, 
the Commission completed the auction of 422 C and F PCS licenses in 
Auction 35.\73\ 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.
---------------------------------------------------------------------------

    \68\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, 11 FCC Rcd 7824, 7850-
7852 ]] 57-60 (1996); see also 47 CFR 24.720(b).
    \69\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, 11 FCC Rcd 7824, 7852 
] 60.
    \70\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, Federal 
Communications Commission, from Aida Alvarez, Administrator, Small 
Business Administration, dated December 2, 1998.
    \71\ FCC News, ``Broadband PCS, D, E and F Block Auction 
Closes,'' No. 71744 (rel. January 14, 1997).
    \72\ See ``C, D, E, and F Block Broadband PCS Auction Closes,'' 
Public Notice, 14 FCC Rcd 6688 (WTB 1999).
    \73\ See ``C and F Block Broadband PCS Auction Closes; Winning 
Bidders Announced,'' Public Notice, 16 FCC Rcd 2339 (2001).
---------------------------------------------------------------------------

    75. 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.\74\ Through these 
auctions, the Commission awarded a total of forty-one licenses, 11 of 
which were obtained by four small businesses.\75\ 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.\76\ 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.\77\ 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.\78\ The SBA 
has approved these small business size standards.\79\ A third auction 
commenced on October 3, 2001 and closed on October 16, 2001. Here, five 
bidders won 317 (MTA and nationwide) licenses.\80\ Three of these 
claimed status as a small or very small entity and won 311 licenses.
---------------------------------------------------------------------------

    \74\ Implementation of Section 309(j) of the Communications 
Act--Competitive Bidding Narrowband PCS, Third Memorandum Opinion 
and Order and Further Notice of Proposed Rulemaking, 10 FCC Rcd 175, 
196 ] 46 (1994).
    \75\ See ``Announcing the High Bidders in the Auction of ten 
Nationwide Narrowband PCS Licenses, Winning Bids Total 
$617,006,674,'' Public Notice, PNWL 94-004 (rel. Aug. 2, 1994); 
``Announcing the High Bidders in the Auction of 30 Regional 
Narrowband PCS Licenses; Winning Bids Total $490,901,787,'' Public 
Notice, PNWL 94-27 (rel. Nov. 9, 1994).
    \76\ Amendment of the Commission's Rules to Establish New 
Personal Communications Services, Narrowband PCS, Second Report and 
Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd 
10456, 10476 ] 40 (2000).
    \77\ Id.
    \78\ Id.
    \79\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, Federal 
Communications Commission, from Aida Alvarez, Administrator, Small 
Business Administration, dated December 2, 1998.
    \80\ See ``Narrowband PCS Auction Closes,'' Public Notice, 16 
FCC Rcd 18663 (WTB 2001).
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    76. 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.\81\ 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.\82\ The SBA has approved these 
small business size standards for the 900 MHz Service.\83\ 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.\84\ 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.\85\
---------------------------------------------------------------------------

    \81\ 47 CFR 90.814(b)(1).
    \82\ Id.
    \83\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
August 10, 1999. The Commission notes that, although a request was 
also sent to the SBA requesting approval for the small business size 
standard for 800 MHz, approval is still pending.
    \84\ See ``Correction to Public Notice DA 96-586 `FCC Announces 
Winning Bidders in the Auction of 1020 Licenses to Provide 900 MHz 
SMR in Major Trading Areas,' '' Public Notice, 18 FCC Rcd 18367 (WTB 
1996).
    \85\ See ``Multi-Radio Service Auction Closes,'' Public Notice, 
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------

    77. 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.
    78. 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 $3 million or $15 million (the special 
small business size standards), or have no more than 1,500 employees 
(the generic SBA standard for wireless entities, discussed, supra). 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.

[[Page 27702]]

    79. 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. The SBA has developed a 
small business size standard for the economic census category, 
``Cellular and Other Wireless Telecommunications,'' which is any such 
entity employing no more than 1,500 persons.\86\ 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.
---------------------------------------------------------------------------

    \86\ See 13 CFR 121.201, NAICS code 517212.
---------------------------------------------------------------------------

    80. Fixed Microwave Services. Fixed microwave services include 
common carrier,\87\ private-operational fixed,\88\ and broadcast 
auxiliary radio services.\89\ 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. As noted, the SBA has developed a small 
business size for the broad census category, ``Cellular and Other 
Wireless Telecommunications'' companies--that is, an entity with no 
more than 1,500 persons.\90\ 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 herein. The Commission notes, however, that the 
common carrier microwave fixed licensee category includes some large 
entities.
---------------------------------------------------------------------------

    \87\ 47 CFR 101 et seq. (formerly, part 21 of the Commission's 
Rules).
    \88\ Persons eligible under parts 80 and 90 of the Commission's 
rules can use Private Operational-Fixed Microwave services. See 
generally 47 CFR parts 80 and 90. Stations in this service are 
called operational-fixed to distinguish them from common carrier and 
public fixed stations. Only the licensee may use the operational-
fixed station, and only for communications related to the licensee's 
commercial, industrial, or safety operations.
    \89\ Auxiliary Microwave Service is governed by part 74 of Title 
47 of the Commission's Rules. See 47 CFR part 74. Available to 
licensees of broadcast stations and to broadcast and cable network 
entities, broadcast auxiliary microwave stations are used for 
relaying broadcast television signals from the studio to the 
transmitter, or between two points such as a main studio and an 
auxiliary studio. The service also includes mobile TV pickups, which 
relay signals from a remote location back to the studio.
    \90\ 13 CFR 121.201, NAICS code 517212.
---------------------------------------------------------------------------

    81. 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.\91\ ``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.\92\ The SBA has approved these 
definitions.\93\ 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.
---------------------------------------------------------------------------

    \91\ See Amendment of the Commission's Rules Regarding the 37.0-
38.6 GHz and 38.6-40.0 GHz Band, Report and Order, 12 FCC Rcd 18600 
(1997).
    \92\ Id.
    \93\ See Letter to Margaret Wiener, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, Federal 
Communications Commission, from Hector Barreto, Administrator, Small 
Business Administration, dated January 18, 2002.
---------------------------------------------------------------------------

    82. 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.\94\ 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.\95\ These regulations defining ``small entity'' in the 
context of LMDS auctions have been approved by the SBA.\96\ 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.
---------------------------------------------------------------------------

    \94\ See Rulemaking to Amend Parts 1, 2, 21, 25, of the 
Commission's Rules to Redesignate the 27.5-29.5 GHz Frequency Band, 
Reallocate the 29.5-30.5 Frequency Band, to Establish Rules and 
Policies for Local Multipoint Distribution Service and for Fixed 
Satellite Services, Second Report and Order, Order on 
Reconsideration, and Fifth Notice of Proposed Rule Making, 12 FCC 
Rcd 12545, 12689-90 ] 348 (1997).
    \95\ Id.
    \96\ See Letter to Daniel Phythyon, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
January 6, 1998.
---------------------------------------------------------------------------

    83. 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).\97\ 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.\98\ For future auctions 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.\99\ 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.\100\ The SBA has approved of these definitions.\101\ At this 
time, no additional auction is scheduled.
---------------------------------------------------------------------------

    \97\ See ``Interactive Video and Data Service (IVDS) 
Applications Accepted for Filing,'' Public Notice, 9 FCC Rcd 6227 
(1994).
    \98\ Implementation of Section 309(j) of the Communications 
Act--Competitive Bidding, Fourth Report and Order, 9 FCC Rcd 2330 
(1994).
    \99\ Amendment of Part 95 of the Commission's Rules to Provide 
Regulatory Flexibility in the 218-219 MHz Service, Report and Order 
and Memorandum Opinion and Order, 15 FCC Rcd 1497 (1999).
    \100\ Id.
    \101\ See Letter to Daniel Phythyon, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
January 6, 1998.
---------------------------------------------------------------------------

    84. 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

[[Page 27703]]

revenues for the preceding three years not exceeding $15 million.\102\ 
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.\103\ These 
definitions have been approved by the SBA.\104\ 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. 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 $3 million 
or $15 million (the special small business size standards), or have no 
more than 1,500 employees (the generic SBA standard for wireless 
entities, discussed supra). The Commission assumes, for purposes of 
this analysis, that all of these licenses are held by small entities.
---------------------------------------------------------------------------

    \102\ Amendment of Part 90 of the Commission's Rules to Adopt 
Regulations for Automatic Vehicle Monitoring Systems, Second Report 
and Order, 13 FCC Rcd 15182, 15192 ] 20 (1998); see also 47 CFR 
90.1103.
    \103\ Amendment of Part 90 of the Commission's Rules to Adopt 
Regulations for Automatic Vehicle Monitoring Systems, Second Report 
and Order, 13 FCC Rcd at 15192 ] 20; see also 47 CFR 90.1103.
    \104\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
Feb. 22, 1999.
---------------------------------------------------------------------------

    85. Rural Radiotelephone Service. The Commission uses the SBA small 
business size standard applicable to cellular and other wireless 
telecommunication companies, i.e., an entity employing no more than 
1,500 persons.\105\ 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 herein.
---------------------------------------------------------------------------

    \105\ 13 CFR 121.201, NAICS code 517212.
---------------------------------------------------------------------------

    86. Air-Ground Radiotelephone Service. The Commission uses the SBA 
small business size standard applicable to cellular and other wireless 
telecommunication companies, i.e., an entity employing no more than 
1,500 persons.\106\ 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 standard.
---------------------------------------------------------------------------

    \106\ Id.
---------------------------------------------------------------------------

    87. 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 small business size standard 
applicable to cellular and other wireless telecommunication companies, 
i.e., an entity employing no more than 1,500 persons.\107\ The 
Commission is unable at this time to estimate the number of licensees 
that would qualify as small entities under the SBA standard. The 
Commission assumes, for purposes of this analysis, that all of the 55 
licensees are small entities, as that term is defined under the SBA 
standard.
---------------------------------------------------------------------------

    \107\ Id.
---------------------------------------------------------------------------

    88. 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.\108\ ``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.\109\ The SBA has approved of these special small business size 
standards.\110\ 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.\111\ Seven winning bidders 
claimed status as small or very small businesses and won 611 licenses.
---------------------------------------------------------------------------

    \108\ See Amendment of the Commission's Rules Regarding Multiple 
Address Systems, Report and Order, 15 FCC Rcd 11956, 12008 ] 123 
(2000).
    \109\ Id.
    \110\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
June 4, 1999.
    \111\ See ``Multiple Address Systems Spectrum Auction Closes,'' 
Public Notice, 16 FCC Rcd 21011 (2001).
---------------------------------------------------------------------------

    89. 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. As noted, the SBA has developed a small business size 
standard for the broad economic census category, ``Cellular and Other 
Wireless Telecommunications,'' which is any such entity employing no 
more than 1,500 persons.\112\ 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.
---------------------------------------------------------------------------

    \112\ See 13 CFR 121.201, NAICS code 517212.
---------------------------------------------------------------------------

    90. 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. As noted, the SBA has developed a small business size standard 
for the broad economic census category, ``Cellular and Other Wireless 
Telecommunications,'' which is any such entity employing no more than 
1,500 persons.\113\ The Commission believes that there are only two 
licensees in the 24 GHz band that were relocated from the 18 GHz band, 
Teligent \114\ 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.
---------------------------------------------------------------------------

    \113\  See Id.
    \114\ Teligent acquired the Digital Electronic Message Service 
(DEMS) licenses of FirstMark, the only licensee other than TRW in 
the 24 GHz band whose license has been modified to require 
relocation to the 24 GHz band.
---------------------------------------------------------------------------

    91. 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.\115\ ``Very small business'' in the 24 GHz band is defined as 
an entity that, together with controlling interests and affiliates, has

[[Page 27704]]

average gross revenues not exceeding $3 million for the preceding three 
years.\116\ The SBA has approved these size standards. At this time, no 
additional auction is scheduled.
---------------------------------------------------------------------------

    \115\ Amendments to Parts 1, 2, 87 and 101 of the Commission's 
Rules To License Fixed Services at 24 GHz, Report and Order, 15 FCC 
Rcd 16934, 16967 ] 77 (2000) (24 GHz Report and Order); see also 47 
CFR 101.538(a)(2).
    \116\ 24 GHz Report and Order, 15 FCC Rcd at 16967 ] 77; see 
also 47 CFR 101.538(a)(1).
---------------------------------------------------------------------------

    92. Cable and Other Program Distribution. 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.\117\ According to Census Bureau data for 2002, there were a 
total of 1,191 firms in this category that operated for the entire 
year.\118\ 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.\119\ Thus, under this size standard, the majority of firms 
can be considered small.
---------------------------------------------------------------------------

    \117\ 13 CFR 121.201, NAICS code 517510.
    \118\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, Table 4, Receipts Size of Firms for the United States: 
2002, NAICS code 517510 (issued November 2005).
    \119\ Id. An additional 61 firms had annual receipts of $25 
million or more.
---------------------------------------------------------------------------

    93. 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.'' \120\ 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.\121\ According to Census Bureau data for 2002, there were a 
total of 1,191 firms in this category that operated for the entire 
year.\122\ 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.\123\ Thus, under this size standard, the majority of firms 
can be considered small.
---------------------------------------------------------------------------

    \120\ U.S. Census Bureau, 2002 NAICS Definitions, ``517510 Cable 
and Other Program Distribution''; http://www.census.gov/epcd/naics02/def/NDEF517.HTM.
    \121\ 13 CFR 121.201, NAICS code 517510.
    \122\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, Table 4, Receipts Size of Firms for the United States: 
2002, NAICS code 517510 (issued November 2005).
    \123\ Id. An additional 61 firms had annual receipts of $25 
million or more.
---------------------------------------------------------------------------

    94. 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.\124\ Industry 
data indicate that, of 1,076 cable operators nationwide, all but eleven 
are small under this size standard.\125\ In addition, under the 
Commission's rules, a ``small system'' is a cable system serving 15,000 
or fewer subscribers.\126\ 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.\127\ Thus, under 
this second size standard, most cable systems are small.
---------------------------------------------------------------------------

    \124\ 47 CFR 76.901(e). The Commission determined that this size 
standard equates approximately to a size standard of $100 million or 
less in annual revenues. Implementation of Sections of the 1992 
Cable Act: Rate Regulation, Sixth Report and Order and Eleventh 
Order on Reconsideration, 10 FCC Rcd 7393, 7408 (1995).
    \125\ These data are derived from: R.R. Bowker, Broadcasting & 
Cable Yearbook 2006, ``Top 25 Cable/Satellite Operators,'' pages A-8 
and C-2 (data current as of June 30, 2005); Warren Communications 
News, Television & Cable Factbook 2006, ``Ownership of Cable Systems 
in the United States,'' pages D-1805 to D-1857.
    \126\ 47 CFR 76.901(c).
    \127\ Warren Communications News, Television & Cable Factbook 
2006, ``U.S. Cable Systems by Subscriber Size,'' page F-2 (data 
current as of Oct. 2005). The data do not include 718 systems for 
which classifying data were not available.
---------------------------------------------------------------------------

    95. 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.'' \128\ 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.\129\ Industry data indicate that, of 1,076 cable operators 
nationwide, all but ten are small under this size standard.\130\ The 
Commission neither requests nor collects information on whether cable 
system operators are affiliated with entities whose gross annual 
revenues exceed $250 million,\131\ and therefore it is unable to 
estimate more accurately the number of cable system operators that 
would qualify as small under this size standard.
---------------------------------------------------------------------------

    \128\ 47 U.S.C. 43(m)(2); see 47 CFR 76.901(f) and nn. 1-3.
    \129\ 47 CFR 76.901(f); see Public Notice, FCC Announces New 
Subscriber Count for the Definition of Small Cable Operator, DA 01-
158 (Cable Services Bureau, Jan. 24, 2001).
    \130\ These data are derived from: R.R. Bowker, Broadcasting & 
Cable Yearbook 2006, ``Top 25 Cable/Satellite Operators,'' pages A-8 
and C-2 (data current as of June 30, 2005); Warren Communications 
News, Television & Cable Factbook 2006, ``Ownership of Cable Systems 
in the United States,'' pages D-1805 to D-1857.
    \131\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's 
finding that the operator does not qualify as a small cable operator 
pursuant to Sec.  76.901(f) of the Commission's rules. See 47 CFR 
76.909(b).
---------------------------------------------------------------------------

    96. 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.\132\
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    \132\ ``Multichannel Video Distribution and Data Service Auction 
Closes,'' Public Notice, DA 04-215 (Feb. 2, 2004).
---------------------------------------------------------------------------

    97. Amateur Radio Service. These licensees are believed to be 
individuals, and therefore are not small entities.
    98. 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. As noted, the SBA 
has developed a small business size standard for the broad economic 
census category, ``Cellular and Other Wireless Telecommunications,'' 
which is any such entity employing no more than 1,500 persons.\133\ 
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

[[Page 27705]]

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.\134\ 
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.
---------------------------------------------------------------------------

    \133\ 13 CFR 121.201, NAICS code 517212.
    \134\ Amendment of the Commission's Rules Concerning Maritime 
Communications, Third Report and Order and Memorandum Opinion and 
Order, 13 FCC Rcd 19853 (1998).
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    99. 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.\135\ 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).\136\ 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 small business size standard ``Cellular and 
Other Wireless Telecommunications,'' pursuant to which a small entity 
is defined as employing 1,500 or fewer persons.\137\ 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.
---------------------------------------------------------------------------

    \135\ 47 CFR part 90.
    \136\ The Citizens Band Radio Service, General Mobile Radio 
Service, Radio Control Radio Service, Family Radio Service, Wireless 
Medical Telemetry Service, Medical Implant Communications Service, 
Low Power Radio Service, and Multi-Use Radio Service are governed by 
subpart D, subpart A, subpart C, subpart B, subpart H, subpart I, 
subpart G, and subpart J, respectively, of part 95 of the 
Commission's rules. See generally 47 CFR part 95.
    \137\ 13 CFR 121.201, NAICS Code 517212.
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    100. 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 here 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.
    101. Public Safety Radio Licensees. As a general matter, public 
safety radio licensees include police, fire, local government, forestry 
conservation, highway maintenance, and emergency medical services.\138\ 
The SBA rules contain a small business size standard for ``Cellular and 
Other Wireless Telecommunications,'' which encompass business entities 
engaged in wireless communications employing no more than 1,500 
persons.\139\ According to Census Bureau data for 2002, in this 
category there was a total of 8,863 firms that operated for the entire 
year.\140\ Of this total, 401 firms had 100 or more employees, and the 
remainder had fewer than 100 employees.\141\ With respect to local 
governments, in particular, since many governmental entities as well as 
private businesses comprise teh licenses for these services, the 
Commission includes under public safety services the number of 
government entities affected.
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    \138\ See subparts A and B of part 90 of the Commission's Rules, 
47 CFR 90.1-90.22. Police licensees include 26,608 licensees that 
serve state, county, and municipal enforcement through telephony 
(voice), telegraphy (code), and teletype and facsimile (printed 
material). Fire licensees include 22,677 licensees comprised of 
private volunteer or professional fire companies, as well as units 
under governmental control. Public Safety Radio Pool licensees also 
include 40,512 licensees that are state, county, or municipal 
entities that use radio for official purposes. There are also 7,325 
forestry service licensees comprised of licensees from state 
departments of conservation and private forest organizations that 
set up communications networks among fire lookout towers and ground 
crews. The 9,480 state and local governments are highway maintenance 
licensees that provide emergency and routine communications to aid 
other public safety services to keep main roads safe for vehicular 
traffic. Emergency medical licensees (1,460) use these channels for 
emergency medical service communications related to the delivery of 
emergency medical treatment. Another 19,478 licensees include 
medical services, rescue organizations, veterinarians, persons with 
disabilities, disaster relief organizations, school buses, beach 
patrols, establishments in isolated areas, communications standby 
facilities, and emergency repair of public communications 
facilities.
    \139\ See 13 CFR 121.201 (NAICS code 517212); U.S. Census 
Bureau, 2002 Economic Census, Subject Series: Information, 
``Employment Size of Establishments for the United States: 2002,'' 
Table 2, NAICS code 517212.
    \140\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Employment Size of Establishments for the United 
States: 2002,'' Table 2, NAICS code 517212.
    \141\ Id.
---------------------------------------------------------------------------

    102. Radio and Television Broadcasting and Wireless Communications 
Equipment Manufacturing. The Census Bureau defines this category as 
follows: ``This industry comprises establishments primarily engaged in 
manufacturing radio and television broadcast and wireless 
communications equipment. Examples of products made by these 
establishments are: transmitting and receiving antennas, cable 
television equipment, GPS equipment, pagers, cellular phones, mobile 
communications equipment, and radio and television studio and 
broadcasting equipment.'' \142\ The SBA has developed a small business 
size standard for Radio and Television Broadcasting and Wireless 
Communications Equipment Manufacturing, which is: All such firms having 
750 or fewer employees.\143\ According to Census Bureau data for 2002, 
there were a total of 1,041 establishments in this category that 
operated for the entire year.\144\ Of this total, 1,010 had employment 
of under 500, and an additional 13 had

[[Page 27706]]

employment of 500 to 999.\145\ Thus, under this size standard, the 
majority of firms can be considered small.
---------------------------------------------------------------------------

    \142\ U.S. Census Bureau, 2002 NAICS Definitions, ``334220 Radio 
and Television Broadcasting and Wireless Communications Equipment 
Manufacturing''; http://www.census.gov/epcd/naics02/def/NDEF334.HTM#N3342.
    \143\ 13 CFR 121.201, NAICS code 334220.
    \144\ U.S. Census Bureau, American FactFinder, 2002 Economic 
Census, Industry Series, Industry Statistics by Employment Size, 
NAICS code 334220 (released May 26, 2005); http://factfinder.census.gov. The number of ``establishments'' is a less 
helpful indicator of small business prevalence in this context than 
would be the number of ``firms'' or ``companies,'' because the 
latter take into account the concept of common ownership or control. 
Any single physical location for an entity is an establishment, even 
though that location may be owned by a different establishment. 
Thus, the numbers given may reflect inflated numbers of businesses 
in this category, including the numbers of small businesses. In this 
category, the Census breaks-out data for firms or companies only to 
give the total number of such entities for 2002, which was 929.
    \145\ Id. An additional 18 establishments had employment of 
1,000 or more.
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E. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities

    103. The projected reporting, recordkeeping, and other compliance 
requirements resulting from the Report and Order will apply to all 
entities in the same manner. The Commission believes that applying the 
same rules equally to all entities promotes fairness. The Commission 
does not believe that the costs and/or administrative burdens 
associated with the rules will unduly burden small entities. The 
revisions the Commission adopts should benefit small entities by giving 
them more information, more flexibility, and more options for gaining 
access to valuable wireless spectrum.
    104. Renewal Procedures. In this Report and Order, the Commission 
revises Sec.  27.14 of the rules to eliminate the filing of competing 
applications at the time of the renewal of 700 MHz licenses. This rule 
change will relieve all licensees, including small businesses that hold 
or will hold licenses in the 700 MHz Band the burden of possibly facing 
a comparative hearing. The Report and Order also clarifies that within 
the renewal context, all licensees must make a substantial service 
showing and demonstrate that they have substantially complied with the 
Commission's rules, policies, and the Communications Act of 1934, as 
amended.\146\ This requirement is distinct from the performance 
requirements that the Commission seeks comment on in the Further 
Notice.
---------------------------------------------------------------------------

    \146\ See 47 CFR 27.14 (2006).
---------------------------------------------------------------------------

    105. 911/E911. There is no general reporting or recordkeeping 
requirements for 911/E911 compliance. The 911/E911 obligations 
established in Sec.  20.18 of our rules, however, are extended to cover 
all commercial mobile radio services (CMRS), including services 
licensed in the 700 MHz Commercial Services Band and the AWS-1 bands, 
to the same extent as they apply to wireless services currently listed 
in the scope provision of Sec.  20.18. The Commission will continue, 
however, to exclude MSS from Sec.  20.18 in conformity with the 
Commission's decision in the E911 Scope Order.\147\ All other CMRS 
providers must comply with the 911/E911 requirements to the extent that 
they offer real-time, two way switched voice service that is 
interconnected with the public switched network and utilize an in-
network-switching facility that enables the provider to reuse 
frequencies and accomplish seamless hand-offs of subscriber calls.\148\ 
The Commission finds that this extension of 911/E911 requirements, 
while substantial for small carriers, is justified by the interest in 
competitive neutrality as well as by the critical public safety 
benefits of 911/E911. To the extent that special circumstances arise in 
particular situations where compliance may not be technically or 
economically feasible, waiver relief is available on a case-by-case 
basis. In addition, to the extent that carriers pursue a handset-based 
compliance solution, implementation should be easier than in previous 
911/E911 compliance instances involving other services. Given that the 
911/E911 requirements in part 27 will be imposed prior to the 
commencement of services in the 700 MHz band, all of the subscribers to 
the new services will have compliant handsets from the commencement of 
service. Small carriers will therefore not have the complication of 
replacing phones that lack 911/E911 capability.
---------------------------------------------------------------------------

    \147\ The Commission initially excluded MSS from Sec.  20.18 in 
the E911 Report and Order. See Revision of the Commission's Rules To 
Ensure Compatibility with Enhanced 911 Emergency Calling Systems, CC 
Docket No. 94-102, Report and Order and Further Notice of Proposed 
Rulemaking, 11 FCC Rcd 18676, 18718 ] 83 (1996) (E911 Report and 
Order). In the E911 Scope Order, upon revisiting the issue, the 
Commission recognized that MSS operators continued to faced unique 
difficulties in implementing 911 and E911 obligations, and therefore 
declined to apply the obligations of Sec.  20.18 and instead imposed 
a separate, limited 911 requirement specifically for MSS, including 
a requirement to establish emergency call centers. See Revision of 
the Commission's Rules to Ensure Compatibility with Enhanced 911 
Emergency Calling Systems, CC Docket 94-102, IB Docket No. 99-67, 
Report and Order and Further Notice of Proposed Rulemaking, 18 FCC 
Rcd 25340, 25347-57 ]] 20-39 (2003) (``E911 Scope Order'').
    \148\ 47 CFR 20.18(a).
---------------------------------------------------------------------------

    106. Public Safety Notification. In this Report and Order, the 
Commission takes steps to address potential intermodulation (``IM'') to 
public safety operations in the 700 MHz Band. Specifically, as the 
Commission did with respect to 800 MHz ESMR and Cellular 
licensees,\149\ the Commission will require 700 MHz Commercial Services 
Band licensees, upon request from a 700 MHz public safety entity, to 
provide to that entity information about the location and parameters of 
any stations they plan to activate in the public safety entity's area 
of operation.\150\ The Commission will also require, as it did in Sec.  
90.675, public safety licensees to provide, upon request of a 700 MHz 
Commercial Services Band licensee, the operating parameters of their 
radio systems.\151\ As indicated in the 800 MHz Report and Order, these 
actions can both help prevent potential interference from occurring and 
help identify possible sources of interference more rapidly, if 
interference were to occur.\152\ It is not anticipated that it will be 
onerous for small businesses to come into compliance with this 
requirement, which is triggered only upon a request from a public 
safety entity. The information to be reported is of a type that the 
licensee will likely have readily available.
---------------------------------------------------------------------------

    \149\ See 47 CFR 90.675.
    \150\ As per Sec.  90.675, this would include information about 
the 700 MHz station's location, effective radiated power, antenna 
height, and channels available for use. 47 CFR 90.675. Also, as per 
Sec.  90.675, Public Safety licensees will not be afforded the right 
to accept or reject the activation of a proposed 700 MHz station or 
to unilaterally require changes to the station's operating 
parameters. We note as well that 700 MHz licensees may regard their 
operating parameters as proprietary and if so, we encourage such 
licensees to use non-disclosure agreement whereby third parties will 
not be given access to such information. Failing that, the affected 
parties could seek a protective order from the Commission. See 
Digital Output Protection Technology and Recording Method 
Certifications, Order, 19 FCC Rcd 4735 (2004). See also 47 CFR 
0.457, 0.459. We also encourage, but do not require, that such 
matters be submitted to arbitration, mediation, or other alternative 
dispute resolution mechanisms.
    \151\ Public Safety licensees will also be required to provide 
information about any technical changes they plan to make to their 
systems.
    \152\ See Improving Public Safety Communications in the 800 MHz 
Band, Consolidating the 800 and 900 MHz Industrial/Land 
Transportation and Business Pool Channels, Amendment of Part 2 of 
the Commission's Rules to Allocate Spectrum Below 3 GHz for Mobile 
and Fixed Services to Support the Introduction of New Advanced 
Wireless Services, including Third Generation Wireless Systems, 
Petition for Rule Making of the Wireless Information Networks Forum 
Concerning the Unlicensed Personal Communications Service, Petition 
for Rule Making of UT Starcom, Inc., Concerning the Unlicensed 
Personal Communications Service, Amendment of Section 2.106 of the 
Commission's Rules to Allocate Spectrum at 2 GHz for use by the 
Mobile Satellite Service, WT Docket 02-55, ET Docket Nos. 00-258 and 
95-18, RM-9498, RM-10024, Report and Order, Fifth Report and Order, 
Fourth Memorandum Opinion and Order, and Order, 19 FCC Rcd 14969, 
15038-39 ] 125 (2004) (``800 MHz Report and Order'') (``if the 
characteristics of a proposed new cell are known in advance, it is 
possible to analyze the cell's potential for interference and make 
any necessary revisions to cell parameters before the cell is 
activated''), 15039 ] 127.
---------------------------------------------------------------------------

    107. Application of Secondary Markets Spectrum Leasing Policies and 
Rules to the Guard Bands. Although the Report and Order replaces the 
Guard Band Manager spectrum leasing regime with the Secondary Markets 
spectrum leasing policies and rules, it sustains the requirements that 
applied to the Guard Band Manager regime with respect to the necessity 
to file annual reports with the Commission on spectrum use, as well as 
mandatory coordination with

[[Page 27707]]

public safety entities for all uses of spectrum including that procured 
through leasing arrangements. The Report and Order also eliminates 
restrictions that had prevented Guard Band licensees from using their 
spectrum as system operators, and from leasing any more than 49.9 
percent of their spectrum to affiliates.

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

    108. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include (among others) the following four alternatives: (1) 
The establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standards; and (4) an 
exemption from coverage of the rule, or any part thereof, for small 
entities.\153\
---------------------------------------------------------------------------

    \153\ 5 U.S.C. 603(c).
---------------------------------------------------------------------------

    109. In the 700 MHz Commercial Services Notice, the Commission 
invited 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. In addition, the Notice sought 
comment on whether the power limits in the existing rules for the 700 
MHz Band spectrum should be revised. Finally, the Commission sought 
comment on its tentative conclusion that services provided 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, and on whether such requirements should be 
extended to all similar wireless services.
    110. Small Geographic Service Areas. A number of small and rural 
service providers, as well as several different coalitions of small, 
regional, and rural carriers proposed a mix of service areas that would 
include 12 REAGs, 176 EAs, and 734 CMAs, instead of just six EAGs. 
Several national carriers filed comments in support of leaving the EAG 
pattern in place. Separate comments were also received seeking a 
nationwide license and license areas smaller than CMAs.
    111. The Commission concluded that providing a mix of CMAs, EAs, 
and REAGs licenses in the 700 MHz Commercial Services spectrum will be 
an effective means of providing increased access to spectrum, 
especially in rural areas, while simultaneously meeting other 
Commission goals. The Commission agrees with those commenters who 
observe that a revised mix of smaller license sizes would provide a 
more balanced set of initial licensing opportunities at this time and 
make available more licenses to match the needs of different potential 
users.\154\ The most common recommendation made to the Commission by 
small and rural providers was that additional licenses be made 
available based on small geographic service areas.\155\ Some of these 
commenters asserted in particular that the use of small geographic 
license areas provides an incentive for licensees to serve more rural 
communities, whereas licensing by large geographic license areas may 
allow licensees to meet their performance requirements only by serving 
the largest urban markets.\156\
---------------------------------------------------------------------------

    \154\ See Letter from Multiple Commenters to Marlene H. Dortch, 
Secretary, Fedeal Communications Commission, WT Docket No. 06-150 
(filed October 20, 2006) (``Balanced Consensus Plan'') (signatories 
to the Balanced Consensus Plan are Alltel, Aloha, Blooston, C&W, 
ConnectME Authority, Corr, Dobson, Leap, Maine Office of Chief 
Information Officer, MetroPCS, NTCA, Nebraska PSC, North Dakota PSC, 
RCA, RTG, Union, US Cellular, Vermont et al., Vermont Telephone 
Company); U.S. Cellular Comments in WT Docket 06-150 at 3; Corr 
Comments in WT Docket 06-150 at 3; NTCA Comments in WT Dockets 06-
150 at 5-6.
    \155\ See Aloha Comments in WT Docket 06-150 at 3-6; Balanced 
Consensus Plan at attachment; Blooston Comments in WT Docket 06-150 
at 2; C&W Reply Comments in WT Docket 06-150 at 2-3; Corr Comments 
in WT Docket 06-150 at 2-4; Dobson Comments in WT Docket 06-150 at 
2-4; Howard/Javed Comments in WT Docket 06-150 at 9; Leap Comments 
in WT Docket 06-150 at 4, 5-6; MilkyWay Comments in WT Docket 06-150 
at 1-6; NextWave Comments in WT Docket 06-150 at 2-6; NTCA Comments 
in WT Docket 06-150 at 6; OPASTCO Comments in WT Docket 06-150 at 2-
3; RCA Comments at 4-8; RTG Comments in WT Docket 06-150 at 2; U.S. 
Cellular Comments in WT Docket 06-150 at 4.
    \156\ See Corr Comments in WT Docket 06-150 at 4; RCA Comments 
in WT Docket 06-150 at 9-10.
---------------------------------------------------------------------------

    112. Power Limits and Public Safety Notification. In this Report 
and Order, the Commission takes steps to address potential 
intermodulation (``IM'') to public safety operations in the 700 MHz 
band in a manner that minimizes the impact on commercial licensees in 
the Upper 700 MHz Band, including small businesses with commercial 
operations in this band. The Commission declines to impose any 
technical restrictions on Upper 700 MHz Commercial Services Band 
licensees to address potential IM interference to 700 MHz public safety 
operations. The Commission will, however, require Upper 700 MHz 
Commercial Services Band licensees and 700 MHz public safety entities, 
upon request from the other, to exchange information about their 
operating stations and systems. A reporting requirement triggered only 
by a request of a public safety entity operating on the 700 MHz Band 
will minimize economic impact on small businesses operating in the 
commercial 700 MHz Band relative to the alternative of imposing 
potentially burdensome technical restrictions on Upper 700 MHz 
Commercial Services Band licensees to address potential IM interference 
to 700 MHz public safety operations.
    113. 911/E911. Almost all of the commenters addressing the 911/E911 
issue support application of the 911/E911 requirements to services in 
the 700 MHz Commercial Services Band to the extent that those services 
are similar to the services already subject to the requirements.\157\ 
Several commenters also state, however, that E911 should not apply to 
700 MHz Commercial Services Band services to a greater extent than it 
does to services currently subject to the requirements.\158\
---------------------------------------------------------------------------

    \157\ See Aloha Comments in WT Docket 06-150 at 12; AT&T 
Comments in WT Docket 06-150 at 16; Blooston Comments in WT Docket 
06-150 at 8; Cingular Comments in WT Docket 06-150 at 15; Dobson 
Comments in WT Docket 06-150 at 11; Leap Comments in WT Docket 06-
150 at 11; NENA Comments in WT Docket 06-150 at 1-2; Qualcomm 
Comments in WT Docket 06-150 at 24 (supporting application of E911 
to both auctioned and previously unauctioned spectrum); U.S. 
Cellular Comments in WT Docket 06-150 at 18 (same); TIA Comments in 
WT Docket 06-150 at 9-10; T-Mobile Reply at 6.
    \158\ See Aloha Comments in WT Docket 06-150 at 12 (700 MHz 
licensees should be subject to the same E911 requirements, ``no more 
or less,'' as other licensees providing services where E911 
obligations exist); Cingular Comments in WT Docket 06-150 at 15 
(supporting application where services met the E911 Scope Order 
criteria); Qualcomm Comments at 24.
---------------------------------------------------------------------------

    114. The Commission concludes that Sec.  20.18(a) of its rules 
should be amended to apply 911/E911 requirements to all commercial 
mobile radio services (CMRS), including services licensed in the 700 
MHz Commercial Services Band and the AWS-1 bands, to the same extent as 
they apply to wireless services currently listed in the scope provision 
of Sec.  20.18.\159\ For those small carriers who can demonstrate in a 
particular circumstance that implementation is not technically or 
economically feasible, the option of waiver relief is available. The 
Report and Order concludes, however, that such case-by-case 
circumstances, if any, should not delay the

[[Page 27708]]

implementation of 911/E911 for service providers generally. In this 
regard, the Commission has observed previously that ``911 service is 
critical to our Nation's ability to respond to a host of crises,'' 
\160\ and that E911 in particular ``saves lives and property by helping 
emergency services personnel do their jobs more quickly and 
efficiently.'' \161\ The Commission also takes note of Congress's 
finding in the ``Ensuring Needed Help Arrives Near Callers Employing 
911 Act of 2004'' that ``for the sake of our Nation's homeland security 
and public safety, a universal emergency telephone number (911) that is 
enhanced with the most modern and state-of-the-art telecommunications 
capabilities possible should be available to all citizens in all 
regions of the Nation'' and that ``enhanced 911 is a high national 
priority.'' \162\
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    \159\ See 47 CFR 20.18.
    \160\ See E911 Scope Order, 18 FCC Rcd at 25341 ] 1.
    \161\ E911 Report and Order, 11 FCC Rcd at 18678 ] 3, 18679 ] 5.
    \162\ 47 U.S.C. 942, notes (1), (4).
---------------------------------------------------------------------------

    115. Application of Secondary Markets Spectrum Leasing Policies and 
Rules to the Guard Bands. The Report and Order maintains the existing 
requirement for Guard Band licensees to file annual reports regarding 
their spectrum usage, and thus does not increase the existing 
recordkeeping and reporting burden. Additionally, the Report and Order 
maintains the existing coordination requirements where all uses of 
Guard Bands spectrum must be coordinated with public safety operations 
in the 700 MHz Band. Under the de jure transfer leasing option within 
the Secondary Markets spectrum leasing policies and rules, the Guard 
Band licensee continues to be responsible for coordinating with the 
public safety operations. Under the de facto transfer leasing option, 
the lessee becomes primarily responsible for such coordination. As a 
result, to the extent that a Guard Band licensee is a small entity, the 
availability of the de facto transfer leasing option under the Report 
and Order reduces the overall potential burden on the Guard Band 
licensee, compared to its previous responsibility as a Guard Band 
Manager to coordinate all uses of its spectrum.

G. Report to Congress

    116. The Commission will send a copy of the Report and Order, 
including this FRFA, in a report to be sent to Congress and the 
Government Accountability Office pursuant to the Congressional Review 
Act.\163\ In addition, the Commission will send a copy of the Report 
and Order, including this FRFA, to the Chief Counsel for Advocacy of 
the SBA. A copy of the Report and Order and FRFA (or summaries thereof) 
will also be published in the Federal Register.\164\
---------------------------------------------------------------------------

    \163\ See 5 U.S.C. 801(a)(1)(A).
    \164\ See 5 U.S.C. 604(b).
---------------------------------------------------------------------------

Ordering Clauses

    117. Accordingly, it is ordered that pursuant to Sec. Sec.  1, 
4(i), 7, 10, 201, 202, 208, 214, 215, 222(d)(4)(A)-(C), 222(f), 222(g), 
222(h)(1)(A), 222(h)(4)-(5), 251(e)(3), 301, 303, 307, 308, 309, 310, 
311, 315, 316, 317, 324, 331, 332, 336, 337 and 710, of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 157, 
160, 201, 202, 208, 214, 215, 222(d)(4)(A)-(C), 222(f), 222(g), 
222(h)(1)(A), 222(h)(4)-(5), 251(e)(3), 301, 303, 307, 308, 309, 310, 
311, 315, 316, 317, 324, 331, 332, 336, 337, and 610, this report and 
order in WT Docket No. 06-150, CC Docket No. 94-102, WT Docket No. 01-
309, WT Docket No. 03-264, WT Docket No. 06-169, WT Docket No. 96-86 
and PS Docket No. 06-229 is adopted, and that part 1, part 20, part 27 
and part 90 of the Commission's rules, 47 CFR part 1, 47 CFR part 20, 
47 CFR part 27, and 47 CFR part 90, are amended as set forth in Rule 
changes. Effective May 16, 2007, except for the amendments to 
Sec. Sec.  20.18(a), 27.50(c)(5), and 27.50(c)(8) which contain 
information collection requirements that have not been approved by the 
Office of Management and Budget (OMB). The Commission will publish a 
document in the Federal Register announcing the effective date.
    118. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this report and order, including the Final Regulatory 
Flexibility Analysis, to the Chief Counsel for Advocacy of the Small 
Business Administration.
    119. It is further ordered that the Commission shall send a copy of 
this report and order in a report to be sent to Congress and the 
General Accounting Office pursuant to the Congressional Review Act, 5 
U.S.C. 801(a)(1)(A).

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rules

0
For the reasons discussed in the preamble, the Federal Communications 
Commission amends 47 CFR parts 1, 20, 27 and 90 as follows:

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 continues to read as follows:

    Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j), 
155, 157, 225, 303(r), and 309.

0
2. Section 1.955 is amended by revising paragraph (a)(1) to read as 
follows:


Sec.  1.955  Termination of authorizations.

    (a) * * *
    (1) Expiration. Authorizations automatically terminate, without 
specific Commission action, on the expiration date specified therein, 
unless a timely application for renewal is filed. See Sec.  1.949 of 
this part. No authorization granted under the provisions of this part 
shall be for a term longer than ten years, except to the extent a 
longer term is authorized under Sec.  27.13 of part 27 of this chapter.
* * * * *

0
3. Section 1.9005 is amended by revising paragraphs (gg) and (hh) and 
adding paragraph (ii) to read as follows:


Sec.  1.9005  Included services.

* * * * *
    (gg) The Common Carrier Fixed Point-to-Point Microwave Service 
(part 101 of this chapter);
    (hh) The Multipoint Video Distribution and Data Service (part 101 
of this chapter); and,
    (ii) The 700 MHz Guard Bands Service (part 27 of this chapter).

PART 20--COMMERCIAL MOBILE RADIO SERVICES

0
4. The authority citation for part 20 continues to read as follows:

    Authority: 47 U.S.C. 154, 160, 201, 251-254, 303, and 332 unless 
otherwise noted.

0
5. Section 20.18 is amended by revising paragraph (a) to read as 
follows:


Sec.  20.18  911 service.

    (a) Scope of Section. The following requirements are only 
applicable to CMRS providers, excluding mobile satellite service (MSS) 
operators, to the extent that they:
    (1) Offer real-time, two way switched voice service that is 
interconnected with the public switched network; and
    (2) Utilize an in-network switching facility that enables the 
provider to reuse frequencies and accomplish seamless hand-offs of 
subscriber calls. These requirements are applicable to entities that 
offer voice service to consumers by purchasing airtime or capacity at 
wholesale rates from CMRS licensees.
* * * * *

[[Page 27709]]


0
6. Section 20.19 is amended by revising paragraphs (a) and (b) 
introductory text to read as follows:


Sec.  20.19  Hearing aid-compatible mobile handsets.

    (a) Scope of Section. Providers of digital CMRS are subject to 
hearing aid-compatibility requirements to the extent that they:
    (1) Offer real-time, two way switched voice or data service that is 
interconnected with the public switched network; and
    (2) Utilize an in-network switching facility that enables the 
provider to reuse frequencies and accomplish seamless hand-offs of 
subscriber calls. Such providers are subject to the requirements set 
forth in this section to the extent that the established technical 
standard or standards specified in paragraph (b) of this section are 
applicable to the service provided. This section also applies to the 
manufacturers of the wireless phones used in delivery of the services 
specified in this paragraph.
    (b) Technical standard for hearing aid compatibility. The technical 
standard set forth in the standard document ANSI C63.19-2001 ``American 
National Standard for Methods of Measurement of Compatibility between 
Wireless Communication Devices and Hearing Aids, ANSI C63.19-2001'' 
(published October 8, 2001--available for purchase from the American 
National Standards Institute) is applicable to providers of Broadband 
Personal Communications Services (part 24, subpart E of this chapter), 
Cellular Radio Telephone Service (part 22, subpart H of this chapter), 
and Specialized Mobile Radio Services in the 800 MHz and 900 MHz bands 
(including in part 980, subpart S of this chapter). A wireless phone 
used for these services is hearing aid compatible for the purposes of 
this section if it meets, at a minimum:
* * * * *

PART 27--MISCELLANEOUS WIRELESS COMMUNICATIONS SERVICES

0
7. The authority citation for part 27 continues to read as follows:

    Authority: 47 U.S.C. 154, 301, 302, 303, 307, 309, 332, 336, and 
337 unless otherwise noted.


Sec.  27.4  [Amended]

0
8. Section 27.4 is amended by removing the definition of ``Guard Band 
Manager.''

0
9. Section 27.10 is amended by revising the introductory paragraph to 
read as follows:


Sec.  27.10  Regulatory status.

    The following rules apply concerning the regulatory status in the 
frequency bands specified in Sec.  27.5.
* * * * *

0
10. Section 27.13 is amended by revising paragraph (b) to read as 
follows:


Sec.  27.13  License period.

* * * * *
    (b) 698-764 MHz and 776-794 MHz bands. Initial authorizations for 
the 698-764 MHz, 747-762 MHz, and 777-792 MHz bands, will extend for a 
term not to exceed ten years from February 17, 2009, except that 
initial authorizations for a part 27 licensee that provides broadcast 
services, whether exclusively or in combination with other services, 
will not exceed eight years. Initial authorizations for the 746-747 
MHz, 776-777 MHz, 762-764 MHz, and 792-794 MHz bands shall not exceed 
January 1, 2015. Subsequent license terms shall be for a term not to 
exceed ten years. Licensees that initiate the provision of a broadcast 
service, whether exclusively or in combination with other services, may 
not provide this service for more than eight years or beyond the end of 
the license term if no broadcast service had been provided, whichever 
period is shorter in length.
* * * * *

0
11. Section 27.14 is amended by revising the section heading, 
redesignating paragraph (e) as paragraph (f), and by adding new 
paragraph (e) to read as follows:


Sec.  27.14  Construction requirements; Criteria for renewal.

* * * * *
    (e) Comparative renewal proceedings do not apply to WCS licensees 
holding authorizations for the 698-746 MHz, 747-762 MHz, and 777-792 
MHz bands. These licensees must file a renewal application in 
accordance with the provisions set forth in Sec.  1.949 of this 
chapter.
* * * * *

0
12. Section 27.50 is amended by revising paragraphs (b) and (c) and 
Table 1 and adding new Table 2, Table 3, and Table 4 to read as 
follows:


Sec.  27.50  Power and antenna height limits.

* * * * *
    (b) The following power and antenna height limits apply to 
transmitters operating in the 746-764 MHz and 776-794 MHz bands:
    (1) Fixed and base stations transmitting a signal in the 746-747 
and 762-764 MHz bands must not exceed an effective radiated power (ERP) 
of 1000 watts and an antenna height of 305 m height above average 
terrain (HAAT), except that antenna heights greater than 305 m HAAT are 
permitted if power levels are reduced below 1000 watts ERP in 
accordance with Table 1 of this section;
    (2) Fixed and base stations transmitting a signal in the 747-762 
MHz and 777-792 MHz bands with an emission bandwidth of 1 MHz or less 
must not exceed an ERP of 1000 watts and an antenna height of 305 m 
HAAT, except that antenna heights greater than 305 m HAAT are permitted 
if power levels are reduced below 1000 watts ERP in accordance with 
Table 1 of this section;
    (3) Fixed and base stations located in a county with population 
density of 100 or fewer persons per square mile, based upon the most 
recently available population statistics from the Bureau of the Census, 
and transmitting a signal in the 747-762 MHz and 777-792 MHz bands with 
an emission bandwidth of 1 MHz or less must not exceed an ERP of 2000 
watts and an antenna height of 305 m HAAT, except that antenna heights 
greater than 305 m HAAT are permitted if power levels are reduced below 
2000 watts ERP in accordance with Table 2 of this section;
    (4) Fixed and base stations transmitting a signal in the 747-762 
MHz and 777-792 MHz bands with an emission bandwidth greater than 1 MHz 
must not exceed an ERP of 1000 watts/MHz and an antenna height of 305 m 
HAAT, except that antenna heights greater than 305 m HAAT are permitted 
if power levels are reduced below 1000 watts/MHz ERP in accordance with 
Table 3 of this section;
    (5) Fixed and base stations located in a county with population 
density of 100 or fewer persons per square mile, based upon the most 
recently available population statistics from the Bureau of the Census, 
and transmitting a signal in the 747-762 MHz and 777-792 MHz bands with 
an emission bandwidth greater than 1 MHz must not exceed an ERP of 2000 
watts/MHz and an antenna height of 305 m HAAT, except that antenna 
heights greater than 305 m HAAT are permitted if power levels are 
reduced below 2000 watts/MHz ERP in accordance with Table 4 of this 
section;
    (6) Licensees of fixed or base stations transmitting a signal in 
the 747-762 or 777-792 MHz bands at an ERP greater than 1000 watts must 
comply with the provisions set forth in paragraph (b)(8) of this 
section and Sec.  27.55(c);
    (7) Licensees seeking to operate a fixed or base station located in 
a county with population density of 100 or fewer persons per square 
mile, based upon the most recently available population statistics from 
the Bureau of the Census,

[[Page 27710]]

and transmitting a signal in the 747-762 MHz or 777-792 MHz bands at an 
ERP greater than 1000 watts must:
    (i) Coordinate in advance with all licensees authorized to operate 
in the 698-764 MHz and 776-794 MHz bands within 120 kilometers (75 
miles) of the base or fixed station; and
    (ii) Coordinate in advance with all regional planning committees, 
as identified in Sec.  90.527 of this chapter, with jurisdiction within 
120 kilometers (75 miles) of the base or fixed station;
    (8) Licensees authorized to transmit in the 747-762 or 777-792 MHz 
bands and intending to operate a base or fixed station at a power level 
permitted under the provisions of paragraph (b)(6) of this section must 
provide advanced notice of such operation to the Commission and to 
licensees authorized in their area of operation. Licensees who must be 
notified are all licensees authorized to operate in the 764-776 MHz and 
794-806 MHz bands under part 90 of this chapter within 75 km of the 
base or fixed station and all regional planning committees, as 
identified in Sec.  90.527 of this chapter, with jurisdiction within 75 
km of the base or fixed station. Notifications must provide the 
location and operating parameters of the base or fixed station, 
including the station's ERP, antenna coordinates, antenna height above 
ground, and vertical antenna pattern, and such notifications must be 
provided at least 90 days prior to the commencement of station 
operation;
    (9) Control stations and mobile stations transmitting in the 747-
762 MHz band and the 776-794 MHz band and fixed stations transmitting 
in the 776-777 MHz band and the 792-794 MHz band are limited to 30 
watts ERP;
    (10) Portable stations (hand-held devices) transmitting in the 747-
762 MHz band and the 776-794 MHz band are limited to 3 watts ERP;
    (11) For transmissions in the 746-747 MHz, 762-764 MHz, 776-777 
MHz, and 792-794 MHz bands, maximum composite transmit power shall be 
measured over any interval of continuous transmission using 
instrumentation calibrated in terms of RMS-equivalent voltage. The 
measurement results shall be properly adjusted for any instrument 
limitations, such as detector response times, limited resolution 
bandwidth capability when compared to the emission bandwidth, etc., so 
as to obtain a true maximum composite measurement for the emission in 
question over the full bandwidth of the channel; and
    (12) For transmissions in the 747-762 MHz and 777-792 MHz bands, 
licensees may employ equipment operating in compliance with either the 
measurement techniques described in paragraph (b)(11) of this section 
or a Commission-approved average power technique. In both instances, 
equipment employed must be authorized in accordance with the provisions 
of Sec.  27.51.
    (c) The following power and antenna height requirements apply to 
stations transmitting in the 698-746 MHz band:
    (1) Fixed and base stations transmitting a signal with an emission 
bandwidth of 1 MHz or less must not exceed an effective radiated power 
(ERP) of 1000 watts and an antenna height of 305 m height above average 
terrain (HAAT), except that antenna heights greater than 305 m HAAT are 
permitted if power levels are reduced below 1000 watts ERP in 
accordance with Table 1 of this section;
    (2) Fixed and base stations located in a county with population 
density of 100 or fewer persons per square mile, based upon the most 
recently available population statistics from the Bureau of the Census, 
and transmitting a signal with an emission bandwidth of 1 MHz or less 
must not exceed an ERP of 2000 watts and an antenna height of 305 m 
HAAT, except that antenna heights greater than 305 m HAAT are permitted 
if power levels are reduced below 2000 watts ERP in accordance with 
Table 2 of this section;
    (3) Fixed and base stations transmitting a signal with an emission 
bandwidth greater than 1 MHz must not exceed an ERP of 1000 watts/MHz 
and an antenna height of 305 m HAAT, except that antenna heights 
greater than 305 m HAAT are permitted if power levels are reduced below 
1000 watts/MHz ERP in accordance with Table 3 of this section;
    (4) Fixed and base stations located in a county with population 
density of 100 or fewer persons per square mile, based upon the most 
recently available population statistics from the Bureau of the Census, 
and transmitting a signal with an emission bandwidth greater than 1 MHz 
must not exceed an ERP of 2000 watts/MHz and an antenna height of 305 m 
HAAT, except that antenna heights greater than 305 m HAAT are permitted 
if power levels are reduced below 2000 watts/MHz ERP in accordance with 
Table 4 of this section;
    (5) Licensees seeking to operate a fixed or base station located in 
a county with population density of 100 or fewer persons per square 
mile, based upon the most recently available population statistics from 
the Bureau of the Census, and transmitting a signal at an ERP greater 
than 1000 watts must:
    (i) Coordinate in advance with all licensees authorized to operate 
in the 698-764 MHz and 776-794 MHz bands within 120 kilometers (75 
miles) of the base or fixed station;
    (ii) Coordinate in advance with all regional planning committees, 
as identified in Sec.  90.527 of this chapter, with jurisdiction within 
120 kilometers (75 miles) of the base or fixed station;
    (6) Licensees of fixed or base stations transmitting a signal at an 
ERP greater than 1000 watts and greater than 1000 watts/MHz must comply 
with the provisions of paragraph (c)(8) of this section and Sec.  
27.55(b), except that licensees of fixed or base stations located in a 
county with population density of 100 or fewer persons per square mile, 
based upon the most recently available population statistics from the 
Bureau of the Census, must comply with the provisions of paragraph 
(c)(8) of this section and Sec.  27.55(b) only if transmitting a signal 
at an ERP greater than 2000 watts and greater than 2000 watts/MHz;
    (7) A licensee authorized to operate in the 710-716, 716-722, or 
740-746 MHz bands, or in any unpaired spectrum blocks within the 698-
746 MHz band, may operate a fixed or base station at an ERP up to a 
total of 50 kW within its authorized, 6 MHz spectrum block if the 
licensee complies with the provisions of Sec.  27.55(b). The antenna 
height for such stations is limited only to the extent required to 
satisfy the requirements of Sec.  27.55(b);
    (8) Licensees intending to operate a base or fixed station at a 
power level permitted under the provisions of paragraph (c)(6) of this 
section must provide advanced notice of such operation to the 
Commission and to licensees authorized in their area of operation. 
Licensees who must be notified are all licensees authorized under this 
part to operate on an adjacent spectrum block within 75 km of the base 
or fixed station. Notifications must provide the location and operating 
parameters of the base or fixed station, including the station's ERP, 
antenna coordinates, antenna height above ground, and vertical antenna 
pattern, and such notifications must be provided at least 90 days prior 
to the commencement of station operation;
    (9) Control and mobile stations are limited to 30 watts ERP;
    (10) Portable stations (hand-held devices) are limited to 3 watts 
ERP; and
    (11) Licensees may employ equipment operating in compliance with 
either the measurement techniques described in paragraph (b)(11) of 
this section or a Commission-approved average power technique. In both 
instances, equipment

[[Page 27711]]

employed must be authorized in accordance with the provisions of Sec.  
27.51.
* * * * *

   Table 1.--Permissible Power and Antenna Heights for Base and Fixed
Stations in the 746-747 MHz and 762-764 MHz Bands and for Base and Fixed
     Stations in the 698-746 MHz, 747-762 MHz, and 777-792 MHz Bands
    Transmitting a Signal With an Emission Bandwidth of 1 MHz or Less
------------------------------------------------------------------------
                                                             Effective
         Antenna height (AAT) in meters  (feet)           radiated power
                                                          (ERP)  (watts)
------------------------------------------------------------------------
Above 1372 (4500).......................................              65
Above 1220 (4000) To 1372 (4500)........................              70
Above 1067 (3500) To 1220 (4000)........................              75
Above 915 (3000) To 1067 (3500).........................             100
Above 763 (2500) To 915 (3000)..........................             140
Above 610 (2000) To 763 (2500)..........................             200
Above 458 (1500) To 610 (2000)..........................             350
Above 305 (1000) To 458 (1500)..........................             600
Up to 305 (1000)........................................            1000
------------------------------------------------------------------------


   Table 2.--Permissible Power and Antenna Heights for Base and Fixed
     Stations in the 698-746 MHz, 747-762 MHz, and 777-792 MHz Bands
    Transmitting a Signal With an Emission Bandwidth of 1 MHz or Less
------------------------------------------------------------------------
                                                             Effective
         Antenna height (AAT) in meters  (feet)           radiated power
                                                          (ERP)  (watts)
------------------------------------------------------------------------
Above 1372 (4500).......................................             130
Above 1220 (4000) To 1372 (4500)........................             140
Above 1067 (3500) To 1220 (4000)........................             150
Above 915 (3000) To 1067 (3500).........................             200
Above 763 (2500) To 915 (3000)..........................             280
Above 610 (2000) To 763 (2500)..........................             400
Above 458 (1500) To 610 (2000)..........................             700
Above 305 (1000) To 458 (1500)..........................            1200
Up to 305 (1000)........................................            2000
------------------------------------------------------------------------


   Table 3.--Permissible Power and Antenna Heights for Base and Fixed
     Stations in the 698-746 MHz, 747-762 MHz and 777-792 MHz Bands
   Transmitting a Signal With an Emission Bandwidth Greater Than 1 MHz
------------------------------------------------------------------------
                                                             Effective
                                                          radiated power
         Antenna height (AAT) in meters  (feet)            (ERP) per MHz
                                                            (watts/MHz)
------------------------------------------------------------------------
Above 1372 (4500).......................................              65
Above 1220 (4000) To 1372 (4500)........................              70
Above 1067 (3500) To 1220 (4000)........................              75
Above 915 (3000) To 1067 (3500).........................             100
Above 763 (2500) To 915 (3000)..........................             140
Above 610 (2000) To 763 (2500)..........................             200
Above 458 (1500) To 610 (2000)..........................             350
Above 305 (1000) To 458 (1500)..........................             600
Up to 305 (1000)........................................            1000
------------------------------------------------------------------------


   Table 4.--Permissible Power and Antenna Heights for Base and Fixed
     Stations in the 698-746 MHz, 747-762 MHz and 777-792 MHz Bands
   Transmitting a Signal With an Emission Bandwidth Greater Than 1 MHz
------------------------------------------------------------------------
                                                             Effective
                                                          radiated power
         Antenna height (AAT) in meters  (feet)            (ERP) per MHz
                                                            (watts/MHz)
------------------------------------------------------------------------
Above 1372 (4500).......................................             130
Above 1220 (4000) To 1372 (4500)........................             140
Above 1067 (3500) To 1220 (4000)........................             150

[[Page 27712]]

 
Above 915 (3000) To 1067 (3500).........................             200
Above 763 (2500) To 915 (3000)..........................             280
Above 610 (2000) To 763 (2500)..........................             400
Above 458 (1500) To 610 (2000)..........................             700
Above 305 (1000) To 458 (1500)..........................            1200
Up to 305 (1000)........................................            2000
------------------------------------------------------------------------


0
13. Section 27.55 is amended by revising paragraph (b) and adding new 
paragraph (c) to read as follows:


Sec.  27.55  Power strength limits.

* * * * *
    (b) Power flux density limit for stations operating in the 698-746 
MHz bands. For base and fixed stations operating in the 698-746 MHz 
band in accordance with the provisions of Sec.  27.50(c)(6), the power 
flux density that would be produced by such stations through a 
combination of antenna height and vertical gain pattern must not exceed 
3000 microwatts per square meter on the ground over the area extending 
to 1 km from the base of the antenna mounting structure.
    (c) Power flux density limit for stations operating in the 747-762 
and 777-792 MHz bands. For base and fixed stations operating in the 
747-762 and 777-792 MHz bands in accordance with the provisions of 
Sec.  27.50(b)(6), the power flux density that would be produced by 
such stations through a combination of antenna height and vertical gain 
pattern must not exceed 3000 microwatts per square meter on the ground 
over the area extending to 1 km from the base of the antenna mounting 
structure.

0
14. Section 27.70 is added to read as follows:


Sec.  27.70  Information exchange.

    (a) Prior notification. Public safety licensees authorized to 
operate in the 764-776 MHz and 794-806 MHz bands may notify any 
licensee authorized to operate in the 747-762 or 777-792 MHz bands that 
they wish to receive prior notification of the activation or 
modification of the licensee's base or fixed stations in their area. 
Thereafter, the 747-762 or 777-792 MHz band licensee must provide the 
following information to the public safety licensee at least 10 
business days before a new base or fixed station is activated or an 
existing base or fixed station is modified:
    (1) Location;
    (2) Effective radiated power;
    (3) Antenna height; and
    (4) Channels available for use.
    (b) Purpose of prior notification. The prior coordination of base 
or fixed stations is for informational purposes only. Public safety 
licensees are not afforded the right to accept or reject the activation 
of a proposed base or fixed station or to unilaterally require changes 
in its operating parameters. The principal purposes of notification are 
to:
    (1) Allow a public safety licensee to advise the 747-762 or 777-792 
MHz band licensee whether it believes a proposed base or fixed station 
will generate unacceptable interference;
    (2) Permit 747-762 and 777-792 MHz band licensees to make voluntary 
changes in base or fixed station parameters when a public safety 
licensee alerts them to possible interference; and
    (3) Rapidly identify the source if interference is encountered when 
the base or fixed station is activated.

0
15. The subpart heading for subpart F is revised to read as follows:

Subpart F--Competitive Bidding Procedures for the 698-806 MHz Band

0
16. The subpart heading for subpart G is revised to read as follows:

Subpart G--Guard Band Service (746-747/776-777 MHz and 762-764/792-
794 MHz Bands)

0
17. Section 27.601 is revised to read as follows:


Sec.  27.601  Authority and coordination requirements.

    (a) Subject to the provisions of Sec.  27.2(b), a Guard Band 
licensee may allow a spectrum lessee, pursuant to a spectrum lease 
arrangement under part 1, subpart X of this chapter, to construct and 
operate stations at any available site within the licensed area and on 
any channel for which the Guard Band licensee is licensed, provided 
such stations comply with Commission Rules and coordination 
requirements.
    (b) Subject to the provisions of Sec.  27.2(b), a Guard Band 
licensee may allow a spectrum lessee, pursuant to a spectrum lease 
arrangement under part 1, subpart X of this chapter, to delete, move or 
change the operating parameters of any of the user's stations that are 
covered under the Guard Band licensee's authorization without prior 
Commission approval, provided such stations comply with Commission 
Rules and coordination requirements.
    (c) Frequency Coordination.
    (1) A Guard Band licensee, or a spectrum lessee operating pursuant 
to a spectrum lease arrangement under Sec. Sec.  1.9030 and 1.9035 of 
this chapter, must notify Commission-recognized public safety frequency 
coordinators for the 700 MHz Public Safety band and adjacent-area Guard 
Band licensees within one business day after the licensee or the 
spectrum lessee has:
    (i) Coordinated a new station or modification of an existing 
station; or
    (ii) Filed an application for an individual station license with 
the Commission.
    (2) The notification required in paragraph (c)(1) of this section 
must include, at a minimum--
    (i) The frequency or frequencies coordinated;
    (ii) Antenna location and height;
    (iii) Type of emission;
    (iv) Effective radiated power;
    (v) A description of the service area, date of coordination, and 
user name or, in the alternative, a description of the type of 
operation.
    (3) In the event a licensee partitions its service area or 
disaggregates its spectrum, it is required to submit the notification 
required in paragraph (c)(1) of this section to other Guard Band 
licensees in the same geographic area.

[[Page 27713]]

    (4) Entities coordinated by a Guard Band licensee, or a spectrum 
lessee operating pursuant to a spectrum lease arrangement under 
Sec. Sec.  1.9030 and 1.9035 of this chapter, must wait at least 10 
business days after the notification required in paragraph (c)(1) of 
this section before operating under the license.
    (d) Where a deletion, move or change authorized under paragraph (b) 
of this section constitutes a discontinuance, reduction, or impairment 
of service under Sec.  27.66 or where discontinuance, reduction or 
impairment of service results from an involuntary act subject to Sec.  
27.66(a), the licensee must comply with the notification and 
authorization requirements set forth in that section.

0
18. Section 27.602 is revised to read as follows:


Sec.  27.602  Lease agreements.

    Guard Band licensees may enter into spectrum leasing arrangements 
under part 1, subpart X of this chapter regarding the use of their 
licensed spectrum by spectrum lessees, subject to the following 
conditions:
    (a) The spectrum lease agreement between the licensee and the 
spectrum lessee must specify in detail the operating parameters of the 
spectrum lessee's system, including power, maximum antenna heights, 
frequencies of operation, base station location(s), area(s) of 
operation, and other parameters specified in Commission rules for the 
use of spectrum identified in Sec.  27.5(b)(1) and (b)(2).
    (b) The spectrum lease agreement must require the spectrum lessee 
to use Commission-approved equipment where appropriate and to complete 
post-construction proofs of system performance prior to system 
activation.


Sec.  27.603  [Removed]

0
19. Section 27.603 is removed.


Sec.  27.605  [Removed]

0
20. Section 27.605 is removed.


Sec.  27.606  [Removed]

0
21. Section 27.606 is removed.

0
22. Section 27.607 is revised to read as follows:


Sec.  27.607  Performance requirements and annual reporting 
requirement.

    (a) Guard Band licensees are subject to the performance 
requirements specified in Sec.  27.14(a).
    (b) Guard Band licensees are required to file an annual report 
providing the Commission with information about the manner in which 
their spectrum is being utilized. Such reports shall be filed with the 
Commission on a calendar year basis, no later than the March 1 
following the close of each calendar year, unless another filing date 
is specified by Public Notice.
    (c) Guard Band licensees must, at a minimum, include the following 
information in their annual reports:
    (1) The total number of spectrum lessees;
    (2) The amount of the licensee's spectrum being used pursuant to 
spectrum lease agreements;
    (3) The nature of the spectrum use of the licensee's customers; 
and,
    (4) The length of term of each spectrum lease agreement, and 
whether the agreement is a spectrum manager lease agreement, or a de 
facto transfer lease agreement.
    (d) The specific information that licensees will provide and the 
procedures that they will follow in submitting their annual reports 
will be announced in a Public Notice issued by the Wireless 
Telecommunications Bureau.

PART 90--PRIVATE LAND MOBILE RADIO SERVICES

0
23. The authority citation for part 90 continues to read as follows:

    Authority: Sections 4(i), 11, 303(g), 303(r), and 332(c)(7) of 
the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 161, 
303(g), 303(r), 332(c)(7).

0
24. Section 90.555 is added to subpart R to read as follows:


Sec.  90.555  Information exchange.

    (a) Prior notification. Public safety licensees authorized to 
operate in the 764-776 MHz and 794-806 MHz bands may notify any 
licensee authorized to operate in the 747-762 or 777-792 MHz bands that 
they wish to receive prior notification of the activation or 
modification of the licensee's base or fixed stations in their area. 
Thereafter, the 747-762 or 777-792 MHz band licensee must provide the 
following information to the public safety licensee at least 10 
business days before a new base or fixed station is activated or an 
existing base or fixed station is modified:
    (1) Location;
    (2) Effective radiated power;
    (3) Antenna height; and
    (4) Channels available for use.
    (b) Purpose of prior notification. The prior coordination of base 
or fixed stations is for informational purposes only. Public safety 
licensees are not afforded the right to accept or reject the activation 
of a proposed base or fixed station or to unilaterally require changes 
in its operating parameters. The principal purposes of notification are 
to:
    (1) Allow a public safety licensee to advise the 747-762 or 777-792 
MHz band licensee whether it believes a proposed base or fixed station 
will generate unacceptable interference;
    (2) Permit 747-762 and 777-792 MHz band licensees to make voluntary 
changes in base or fixed station parameters when a public safety 
licensee alerts them to possible interference; and
    (3) Rapidly identify the source if interference is encountered when 
the base or fixed station is activated.
    (c) Public Safety Information Exchange.
    (1) Upon request by a 747-762 or 777-792 MHz band licensee, public 
safety licensees authorized to operate radio systems in the 764-776 and 
794-806 MHz bands shall provide the operating parameters of their radio 
system to the 747-762 or 777-792 MHz band licensee.
    (2) Public safety licensees who perform the information exchange 
described in this section must notify the appropriate 747-762 or 777-
792 MHz band licensees prior to any technical changes to their radio 
system.

[FR Doc. E7-9334 Filed 5-15-07; 8:45 am]
BILLING CODE 6712-01-P


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