27688 Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Rules and Regulations 

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). 

2See 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 

§ 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). 

3See 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). 

4See 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). 

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. 

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 §§ 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, 

paul.moon@fcc.gov, Mobility Division, 

Wireless Telecommunications Bureau; 

Paul D’Ari at (202) 418–1550, 

paul.dari@fcc.gov, Spectrum and 

Competition Policy Division, Wireless 

Telecommunications Bureau; John 

Evanoff at (202) 418–0848, 

john.evanoff@fcc.gov, 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 

FCC@BCPIWEB.COM. 

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 § 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 

§ 20.18(j)(4) are a result of the 

amendments to § 20.18(a). We also note 

that § 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. 

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 


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well as opportunities for broadband 

service for Public Safety users. 

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 countysized 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 § 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 

§ 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 § 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 


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27690 Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Rules and Regulations 

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 setasides. 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 

§ 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 § 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 § 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 


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Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Rules and Regulations 27691 

license term will apply to all licenses in 

the 700 MHz Commercial Services 

Band. However, because § 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 marketby-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, § 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 


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27692 Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Rules and Regulations 

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/m2 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 broadcasttype 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 highpower, 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 outof-band emission limits coupled with 

the 3 mW/m2 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/m2 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/m2 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, 


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5Specifically, the Commission determined that it 

would consider whether (1) the service offers realtime, two-way voice service that is interconnected 

to the pubic switched network on either a standalone 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 

Continued 

both rural and non-rural, transmitting 

signals at a power levels greater than 1 

kW ERP, irrespective of bandwidth, 

must satisfy the 3 mW/m2 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 § 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 § 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-networkswitching facility which enables the 

provider to reuse frequencies and 

accomplish seamless hand-offs of 

subscriber calls’’ (hereinafter, the 

‘‘§ 20.18(a) criteria’’). The FCC will 

continue, however, to exclude MSS 

from § 20.18 in conformity with the 

Commission’s decision in the E911 

Scope Order. 

34. The public interest generally 

requires wireless services meeting the 

§ 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 § 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 


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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’’). 

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 § 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 § 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 § 20.18 to 

all commercial mobile radio services 

meeting the § 20.18(a) criteria is 

justified by the interest in competitive 

neutrality as well as by the critical 

public safety benefits of 911/E911. 

(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 

§ 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 innetwork 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 § 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 § 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 

§ 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 


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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 enduser 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 § 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 


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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 reevaluate 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 

§ 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 § 27.601 of 


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6See 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). 

7See 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 

§ 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’’). 

8See 5 U.S.C. 604. 

9 In particular, this exemption extends to the 

requirements imposed by Chapter 6 of Title 5, 

United States Code, § 3 of the Small Business Act 

(15 U.S.C. 632) and §§ 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). 

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.’’

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

54. Although § 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. 

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 bandspecific 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 

§§ 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, 

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 


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27698 Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Rules and Regulations 

13 15 U.S.C. 632. 

14 5 U.S.C. 601(5). 

15U.S. Census Bureau, Statistical Abstract of the 

United States: 2006, § 8, pages 272–273, Tables 415 

and 417. 

16Amendment of the Commission’s Rules to 

Establish Part 27, the Wireless Communications 

Service (WCS), Report and Order, 12 FCC Rcd 

10785, 10879 ¶ 194 (1997). 

17See 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. 

18See 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). 

22See ‘‘700 MHz Guard Bands Auction Closes: 

Winning Bidders Announced,’’ Public Notice, 15 

FCC Rcd 18026 (2000). 

23See ‘‘700 MHz Guard Bands Auctions Closes: 

Winning Bidders Announced,’’ Public Notice, 16 

FCC Rcd 4590 (WTB 2001). 

24Service 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). 

25See ‘‘Auction of Licenses for 747–762 and 777–

792 MHz Bands (Auction No. 31) Is Rescheduled,’’

Public Notice, 16 FCC Rcd 13079 (WTB 2003). 

26See 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. 

30See Letter to Thomas Sugrue, Chief, Wireless 

Telecommunications Bureau, Federal 

Communications Commission, from Aida Alvarez, 

Administrator, Small Business Administration, 

dated August 10, 1999. 

of operation; and (3) satisfies any 

additional criteria established by the 

Small Business Administration 

(SBA).13

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. 

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. 

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

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

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. Seventytwo of the winning bidders claimed 


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31See ‘‘Lower 700 MHz Band Auction Closes,’’

Public Notice, 17 FCC Rcd 17272 (WTB 2002). 

32See ‘‘Lower 700 MHz Band Auction Closes,’’

Public Notice, 18 FCC Rcd 11873 (WTB 2003). 

33 Id. 

34See 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). 

35See 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. 

36See 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. 

37Service 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). 

38Amendment 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 § 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). 

39See 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). 

41See 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). 

42Basic 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 § 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. 

44 13 CFR 121.201, North American Industry 

Classification System (NAICS) code 517212. 

45 Id. 

46U.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 

Continued 

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

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. 

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. 

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

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 


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largest category provided is for firms with ‘‘1000 

employees or more.’’ 48 13 CFR 121.201, NAICS code 517212. 

49U.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.’’

51Amendment 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. 

54See Letter to Daniel Phythyon, Chief, Wireless 

Telecommunications Bureau, Federal 

Communications Commission, from Aida Alvarez, 

Administrator, Small Business Administration, 

dated January 6, 1998. 

55See generally ‘‘220 MHz Service Auction 

Closes,’’ Public Notice, 14 FCC Rcd 605 (WTB 

1998). 

56See ‘‘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). 

57See ‘‘Phase II 220 MHz Service Spectrum 

Auction Closes,’’ Public Notice, 14 FCC Rcd 11218 

(WTB 1999). 

58See ‘‘Multi-Radio Service Auction Closes,’’

Public Notice, 17 FCC Rcd 1446 (WTB 2002). 

59Revision 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). 

60Paging Second Report and Order, 12 FCC Rcd 

at 2811 ¶ 179. 

61See Letter to Amy Zoslov, Chief, Auctions and 

Industry Analysis Division, Wireless 

Telecommunications Bureau, from Aida Alvarez, 

Administrator, Small Business Administration, 

dated December 2, 1998. 

62See ‘‘929 and 931 MHz Paging Auction Closes,’’

Public Notice, 15 FCC Rcd 4858 (WTB 2000). 

63See id. 

64See ‘‘Lower and Upper Paging Band Auction 

Closes,’’ Public Notice, 16 FCC Rcd 21821 (WTB 

2002). 

65See ‘‘Lower and Upper Paging Bands Auction 

Closes,’’ Public Notice, 18 FCC Rcd 11154 (WTB 

2003). 

66See 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. 

68See 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). 

size standard, the majority of firms can 

be considered small. 

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. 

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

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. Seventyseven 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. 

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 


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69See 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. 

70See 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. 

71FCC News, ‘‘Broadband PCS, D, E and F Block 

Auction Closes,’’ No. 71744 (rel. January 14, 1997). 

72See ‘‘C, D, E, and F Block Broadband PCS 

Auction Closes,’’ Public Notice, 14 FCC Rcd 6688 

(WTB 1999). 

73See ‘‘C and F Block Broadband PCS Auction 

Closes; Winning Bidders Announced,’’ Public 

Notice, 16 FCC Rcd 2339 (2001). 

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). 

75See ‘‘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). 

76Amendment 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. 

79See 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. 

80See ‘‘Narrowband PCS Auction Closes,’’ Public 

Notice, 16 FCC Rcd 18663 (WTB 2001). 

81 47 CFR 90.814(b)(1). 

82 Id. 

83See 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. 

84See ‘‘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). 

85See ‘‘Multi-Radio Service Auction Closes,’’

Public Notice, 17 FCC Rcd 1446 (WTB 2002). 

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. 

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. 

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

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. 


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86See 13 CFR 121.201, NAICS code 517212. 

87 47 CFR 101 et seq. (formerly, part 21 of the 

Commission’s Rules). 

88Persons eligible under parts 80 and 90 of the 

Commission’s rules can use Private OperationalFixed 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. 

89Auxiliary 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. 

91See 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. 

93See 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. 

94See 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. 

96See Letter to Daniel Phythyon, Chief, Wireless 

Telecommunications Bureau, Federal 

Communications Commission, from Aida Alvarez, 

Administrator, Small Business Administration, 

dated January 6, 1998. 

97See ‘‘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). 99Amendment 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. 101See Letter to Daniel Phythyon, Chief, Wireless 

Telecommunications Bureau, Federal 

Communications Commission, from Aida Alvarez, 

Administrator, Small Business Administration, 

dated January 6, 1998. 

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 (nontelecommunications) 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. 

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. 

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. 

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 reauctioned 161 licenses; there were 32 

small and very small business winning 

bidders that won 119 licenses. 

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. 

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 


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102Amendment 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. 

103Amendment 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. 

104See Letter to Thomas Sugrue, Chief, Wireless 

Telecommunications Bureau, Federal 

Communications Commission, from Aida Alvarez, 

Administrator, Small Business Administration, 

dated Feb. 22, 1999. 

105 13 CFR 121.201, NAICS code 517212. 

106 Id. 

107 Id. 

108See Amendment of the Commission’s Rules 

Regarding Multiple Address Systems, Report and 

Order, 15 FCC Rcd 11956, 12008 ¶ 123 (2000). 

109 Id. 

110See Letter to Thomas Sugrue, Chief, Wireless 

Telecommunications Bureau, Federal 

Communications Commission, from Aida Alvarez, 

Administrator, Small Business Administration, 

dated June 4, 1999. 

111See ‘‘Multiple Address Systems Spectrum 

Auction Closes,’’ Public Notice, 16 FCC Rcd 21011 

(2001). 

112See 13 CFR 121.201, NAICS code 517212. 113 See Id. 114Teligent 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. 

115Amendments 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). 

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 nonmultilateration 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. 

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. 

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. 

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. 

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. 

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. 

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. 

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 


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116 24 GHz Report and Order, 15 FCC Rcd at 

16967 ¶ 77; see also 47 CFR 101.538(a)(1). 

117 13 CFR 121.201, NAICS code 517510. 

118U.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. 

120U.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. 

122U.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. 

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). 

125These 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). 

127Warren 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. 

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). 

130These 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. 

131The 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 § 76.901(f) of the 

Commission’s rules. See 47 CFR 76.909(b). 

132 ‘‘Multichannel Video Distribution and Data 

Service Auction Closes,’’ Public Notice, DA 04–215 

(Feb. 2, 2004). 

133 13 CFR 121.201, NAICS code 517212. 

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. 

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. 

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. 

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. 

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. 

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

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 


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134Amendment of the Commission’s Rules 

Concerning Maritime Communications, Third 

Report and Order and Memorandum Opinion and 

Order, 13 FCC Rcd 19853 (1998). 

135 47 CFR part 90. 

136The 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. 

138See 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. 

139See 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. 

140U.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. 

142U.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. 

144U.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. 

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. 

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 MultiUse 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. 

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. 

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 


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145 Id. An additional 18 establishments had 

employment of 1,000 or more. 

146See 47 CFR 27.14 (2006). 

147The Commission initially excluded MSS from 

§ 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 

§ 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). 

149See 47 CFR 90.675. 

150As per § 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 § 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. 

151Public Safety licensees will also be required to 

provide information about any technical changes 

they plan to make to their systems. 

152See 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. 

employment of 500 to 999.145 Thus, 

under this size standard, the majority of 

firms can be considered small. 

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 § 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. 

105. 911/E911. There is no general 

reporting or recordkeeping requirements 

for 911/E911 compliance. The 911/E911 

obligations established in § 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 § 20.18. The Commission will 

continue, however, to exclude MSS 

from § 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-bycase 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. 

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 § 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. 

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 


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

154See 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. 155See 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. 

156See Corr Comments in WT Docket 06–150 at 

4; RCA Comments in WT Docket 06–150 at 9–10. 

157See 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. 

158See 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. 

159See 47 CFR 20.18. 

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

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 aidcompatibility 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

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

114. The Commission concludes that 

§ 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 

§ 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 


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160See E911 Scope Order, 18 FCC Rcd at 25341 

¶ 1. 

161E911 Report and Order, 11 FCC Rcd at 18678 

¶ 3, 18679 ¶ 5. 162 47 U.S.C. 942, notes (1), (4). 163See 5 U.S.C. 801(a)(1)(A). 164See 5 U.S.C. 604(b). 

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

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

Ordering Clauses 

117. Accordingly, it is ordered that 

pursuant to §§ 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 §§ 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 

■ 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 

■ 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. 

■ 2. Section 1.955 is amended by 

revising paragraph (a)(1) to read as 

follows: 

§ 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 § 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 

§ 27.13 of part 27 of this chapter. 

* * * * * 

■ 3. Section 1.9005 is amended by 

revising paragraphs (gg) and (hh) and 

adding paragraph (ii) to read as follows: 

§ 1.9005 Included services. 

* * * * * 

(gg) The Common Carrier Fixed Pointto-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 

■ 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. 

■ 5. Section 20.18 is amended by 

revising paragraph (a) to read as follows: 

§ 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. 

* * * * * 


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■ 6. Section 20.19 is amended by 

revising paragraphs (a) and (b) 

introductory text to read as follows: 

§ 20.19 Hearing aid-compatible mobile 

handsets. 

(a) Scope of Section. Providers of 

digital CMRS are subject to hearing aidcompatibility 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 

■ 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. 

§ 27.4 [Amended] 

■ 8. Section 27.4 is amended by 

removing the definition of ‘‘Guard Band 

Manager.’’

■ 9. Section 27.10 is amended by 

revising the introductory paragraph to 

read as follows: 

§ 27.10 Regulatory status. 

The following rules apply concerning 

the regulatory status in the frequency 

bands specified in § 27.5. 

* * * * * 

■ 10. Section 27.13 is amended by 

revising paragraph (b) to read as follows: 

§ 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. 

* * * * * 

■ 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: 

§ 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 § 1.949 of this 

chapter. 

* * * * * 

■ 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: 

§ 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 § 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, 


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27710 Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Rules and Regulations 

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 § 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 § 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 

§ 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 § 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 § 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 

§ 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 

§ 27.55(b). The antenna height for such 

stations is limited only to the extent 

required to satisfy the requirements of 

§ 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 


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Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Rules and Regulations 27711 

employed must be authorized in 

accordance with the provisions of 

§ 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

Antenna height (AAT) in meters 

(feet) 

Effective 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

Antenna height (AAT) in meters 

(feet) 

Effective 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

Antenna height (AAT) in meters 

(feet) 

Effective radiated power 

(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

Antenna height (AAT) in meters 

(feet) 

Effective radiated power 

(ERP) per 

MHz 

(watts/MHz) 

Above 1372 (4500) .............................................................................................................................................................................. 130 

Above 1220 (4000) To 1372 (4500) .................................................................................................................................................... 140 

Above 1067 (3500) To 1220 (4000) .................................................................................................................................................... 150 


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27712 Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Rules and Regulations 

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—Continued 

Antenna height (AAT) in meters 

(feet) 

Effective radiated power 

(ERP) per 

MHz 

(watts/MHz) 

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 

■ 13. Section 27.55 is amended by 

revising paragraph (b) and adding new 

paragraph (c) to read as follows: 

§ 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 

§ 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 § 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. 

■ 14. Section 27.70 is added to read as 

follows: 

§ 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. 

■ 15. The subpart heading for subpart F 

is revised to read as follows: 

Subpart F—Competitive Bidding 

Procedures for the 698–806 MHz Band 

■ 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) 

■ 17. Section 27.601 is revised to read 

as follows: 

§ 27.601 Authority and coordination 

requirements. 

(a) Subject to the provisions of 

§ 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 

§ 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 

§§ 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. 


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Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Rules and Regulations 27713 

(4) Entities coordinated by a Guard 

Band licensee, or a spectrum lessee 

operating pursuant to a spectrum lease 

arrangement under §§ 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 § 27.66 or where discontinuance, 

reduction or impairment of service 

results from an involuntary act subject 

to § 27.66(a), the licensee must comply 

with the notification and authorization 

requirements set forth in that section. 

■ 18. Section 27.602 is revised to read 

as follows: 

§ 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 § 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 postconstruction proofs of system 

performance prior to system activation. 

§ 27.603 [Removed] 

■ 19. Section 27.603 is removed. 

§ 27.605 [Removed] 

■ 20. Section 27.605 is removed. 

§ 27.606 [Removed] 

■ 21. Section 27.606 is removed. 

■ 22. Section 27.607 is revised to read 

as follows: 

§ 27.607 Performance requirements and 

annual reporting requirement. 

(a) Guard Band licensees are subject 

to the performance requirements 

specified in § 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 

■ 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). 

■ 24. Section 90.555 is added to subpart 

R to read as follows: 

§ 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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