[Federal Register Volume 65, Number 190 (Friday, September 29, 2000)]
[Rules and Regulations]
[Pages 58477-58482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24964]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 20

[PR Docket No. 94-54; FCC 00-251]


Interconnection and Resale Obligations Pertaining to Commercial 
Mobile Radio Services

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Federal Communications Commission (the Commission) 
previously required certain providers of Commercial Mobile Radio 
Services (CMRS) to provide ``manual'' roaming service upon reasonable 
request to any subscriber. In this document, the Commission modifies 
the scope of the ``manual'' roaming rule to apply only to CMRS 
providers that offer real-time two-way switched voice or data service 
that is interconnected with the public switched network using an in-
network switching facility. Additionally, the Commission revises the 
scope to extend to cellular and broadband PCS providers. Also, the 
Commission extends the rule to cover data-only services as well as 
voice services. Finally, the Commission terminates its consideration in 
this docket of issues relating to ``automatic'' roaming and the 
potential sunset of the ``manual'' roaming rule.

DATES: Effective November 28, 2000.

FOR FURTHER INFORMATION CONTACT: For further information, contact Paul 
Murray, Wireless Telecommunications Bureau, at (202) 418-0688; 
additional information concerning the information collections contained 
in this document contact Judy Boley at (202) 418-0214, or via the 
Internet at <a href="/cdn-cgi/l/email-protection#1379717c7f766a537570703d747c65"><span class="__cf_email__" data-cfemail="c8a2aaa7a4adb188aeababe6afa7be">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This Memorandum Opinion & Order (MO&O) in PR 
Docket No. 93-144, adopted August 2, 2000, and released August 4, 2000, 
is available for inspection and copying during normal business hours in 
the FCC Reference Center, 445 Twelfth Street, SW., Washington DC. The 
complete text may be purchased from the Commission's copy contractor, 
International Transcription Service, Inc., 1231 20th Street, NW., 
Washington DC 20036 (202) 857-3800.

Synopsis of Memorandum Opinion and Order

I. Introduction

    1. Roaming occurs when the subscriber of one CMRS provider utilizes 
the facilities of another CMRS provider with which the subscriber has 
no direct pre-existing service or financial relationship to place an 
outgoing call, to receive an incoming call, or to continue an in-
progress call. Roaming service can be provided through a variety of 
technical and contractual arrangements.
    2. In 1996, we determined in the Second Report and Order and Third 
Notice of Proposed Rulemaking (``Second Report and Order''), 11 FCC Rcd 
9462 (1996), published 61 FR 44026 (Aug. 27, 1996), that the 
availability of roaming on broadband wireless networks was important to 
the development of nationwide, ubiquitous, and competitive wireless 
voice telecommunications, and that market forces alone might not be 
sufficient to cause roaming to become widely available during the 
period in which systems to provide these services were being built. 
Accordingly, we ordered that our then-existing ``manual'' roaming rule 
requiring cellular carriers to serve individual roamers, 47 CFR 22.901, 
be extended to include other CMRS providers, both broadband PCS and 
``covered'' SMR, that offer comparable competitive telephony services 
so long as the roamer's handset is technically capable of accessing 
their services.

II. Summary of the Memorandum Opinion and Order on Reconsideration

    3. In this order we consider three petitions for reconsideration 
and/or clarification of the ``manual'' roaming

[[Page 58478]]

rule, filed by the American Mobile Telecommunications Association, 
Nextel Communications, Inc. (Nextel), and Small Business in 
Telecommunications, Inc. These focus on the extent to which SMR service 
providers should be covered by the ``manual'' roaming rule. In 
addition, we consider Nextel's petition for declaratory ruling in which 
clarification of the ``manual'' roaming rule was sought.

A. Modifications to the Scope of the Manual Roaming Rule

    4. In our Second Report and Order, we limited the scope of the 
``manual'' roaming rule in the SMR context to ``covered'' SMR 
providers, a definition which we intended to include only those 
providers who compete directly with cellular and broadband PCS. Under 
the existing rule, ``covered'' SMR providers include certain SMR 
licensees within two classes. The first class consists of 800 MHz and 
900 MHz SMR licensees that hold geographic area licenses. The second 
covers incumbent wide area SMR licensees, defined as licensees who have 
obtained extended implementation authorizations in the 800 MHz or 900 
MHz SMR service, either by waiver or under Section 90.629 of our rules. 
Within these classes, ``covered'' SMR providers ``includes only 
licensees that offer real-time, two-way switched voice service that is 
interconnected with the public switched network, either on a stand-
alone basis or packaged with other telecommunications services.'' We 
stated that local SMR licensees offering mainly dispatch services to 
specialized customers in a non-cellular system configuration, as well 
as licensees offering only data, one-way, or stored voice services on 
an interconnected basis, are not covered by the roaming rule because 
these providers do not compete substantially with cellular and 
broadband PCS providers. We found that the costs of applying the 
roaming rule to their operations would outweigh the benefits.
    5. Modification of Definition of ``Covered'' Providers. On 
reconsideration, we now conclude that our objective with respect to SMR 
is best achieved by limiting the ``manual'' roaming rule to reach those 
CMRS providers that offer real-time, two-way switched voice and data 
service that is interconnected with the public switched telephone 
network utilizing an ``in-network'' switching facility. In addition, we 
are extending the rule to cover not only voice, but data-only service 
as well. Accordingly, we revise the applicable rule, 47 CFR 20.12 
(``Resale and Roaming'').
    6. We conclude that an important indicator of a provider's ability 
to compete with traditional cellular and broadband PCS providers is 
whether the provider's system has ``in-network'' switching capability. 
In-network switching facilities accommodate the reuse of frequencies in 
different portions of the same service area, thus enabling an SMR 
provider to offer interconnected service to a larger group of customers 
and to compete directly with cellular and broadband PCS in the mass 
consumer market. We therefore adopt in-network switching capability as 
a criterion for coverage under the ``manual'' roaming rule.
    7. Also, as we have done in the contexts of resale, number 
portability, and E911, we extend our modified definition of ``covered'' 
SMR to providers of similar service over cellular and broadband PCS 
spectrum. This reflects the fact that SMR services excluded from 
coverage under our definition, such as traditional dispatch services, 
can be provided using cellular or broadband PCS spectrum as well as SMR 
spectrum.
    8. Application on a System-by-System Basis. Finally, we clarify 
that if a licensee provides ``covered'' service on systems in certain 
areas of the country, and provides only traditional dispatch services 
on systems in other areas of the country, only the ``covered'' systems 
would be subject to the ``manual'' roaming rule. Thus, the rule will 
not apply in the geographic area(s) where a carrier provides only 
traditional dispatch service, provided that the carrier clearly 
identifies the area(s) in question.

B. Manual Roaming Requirement Pertaining to SMR

    9. One petitioner seeks clarification of the rule with respect to 
the particular SMR service it provides, contending that application of 
the ``manual'' roaming rule would require it to modify its system and 
otherwise cause it to incur significant costs in a manner that would 
violate the Commission's intent with regard to the obligations imposed 
by the rule. Specifically, it claims that compliance with the rule is 
technically infeasible because SMR systems, unlike cellular systems, do 
not share control channels or interoperability standards.
    10. In our Second Report and Order, we stated that licensees are 
required to provide ``manual'' roaming to subscribers of any cellular, 
broadband PCS, or ``covered'' SMR services so long as that subscriber 
is using a handset that is technically capable of accessing the 
licensee's system. We also, however, stated that our ``manual'' roaming 
rule did not require licensees to modify their systems in order to 
provide ``manual'' roaming service to end users. We confirm that the 
``manual'' roaming rule applies to SMR carriers to the extent they fall 
within the modified definition of ``covered'' CMRS providers. Beyond 
that, we decline here to reach the factual determination of a 
particular provider is required by our rule to provide ``manual'' 
roaming to other SMR companies'' subscribers. We believe that this 
issue, which requires a specific factual determination, would more 
appropriately be resolved in a petition for declaratory ruling directed 
specifically toward this issue or in the context of a complaint filed 
pursuant to Section 208.

III. Third Report and Order

    11. In issuing the Second Report and Order in 1996, we recognized 
that the CMRS marketplace was rapidly expanding and technologies were 
dramatically evolving. We concluded that the record was inconclusive 
regarding the need for an ``automatic'' roaming requirement, and that 
promulgation of an ``automatic'' roaming rule would be premature. In 
1997, the Wireless Telecommunications Bureau sought additional comment 
on a potential ``automatic'' roaming requirement in light of 
intervening market and technological developments. Unlike ``manual'' 
roaming, ``automatic'' roaming enables a roaming subscriber to 
originate or terminate a call without taking action other than turning 
on his or her telephone. Provision of ``automatic'' roaming requires a 
contractual arrangement between the home and roamed-on systems.
    12. Given these substantial developments over the last few years, 
we believe that an informed decision by the Commission regarding what 
sort of roaming requirements are appropriate today and for the 
foreseeable future requires an up-to-date record reflecting current 
conditions. We plan in the near future to issue a new, separately 
docketed NPRM. We believe such a new NPRM will enable us better to 
address the relevant issues relating to ``automatic'' and ``manual'' 
roaming in light of current technological and market conditions.

IV. Procedural Matters

Supplemental Final Regulatory Flexibility Analysis

    13. As required by the Regulatory Flexibility Act, 5 U.S.C. 604 
(RFA), a Final Regulatory Flexibility Analysis

[[Page 58479]]

(FRFA) was incorporated into Second Report and Order in this 
proceeding. The Commission received no direct comments or petitions for 
reconsideration of the Final Regulatory Flexibility Analysis (or the 
Initial Regulatory Flexibility Analysis) contained therein. The 
Commission's Supplemental Final Regulatory Flexibility Analysis 
(Supplemental FRFA) in this Third Report and Order and Memorandum 
Opinion and Order on Reconsideration (Memorandum Opinion and Order on 
Reconsideration) reflects revised or additional information to that 
contained in the FRFA prepared in 1996. This Supplemental FRFA conforms 
to the RFA, as amended by the Contract with America Advancement Act of 
1996.

I. Need for and Purpose of this Action

    14. In this Memorandum Opinion and Order on Reconsideration, the 
Commission generally affirms its decision in the Second Report and 
Order to extend the ``manual'' roaming rule requiring cellular carriers 
to serve individual roamers to include other Commercial Mobile Radio 
Service (CMRS) providers, both broadband Personal Communications 
Service (PCS) and ``covered'' Specialized Mobile Radio (SMR), that 
offer competitive telephony services so long as the roamer's handset is 
technically capable of accessing their services.

II. Summary of Significant Issues Raised by the Public in Response to 
the Final Regulatory Flexibility Analysis

    15. In the Second Report and Order, the Commission in 1996 had 
limited the scope of the ``manual'' roaming rule in the SMR context to 
``covered'' SMR providers. This included two classes of ``covered'' 
providers: first, there were geographic area licensees in the Cellular, 
Broadband PCS, and the 800 and 900 MHz SMR services; and, second, 
incumbent wide area licensees who obtained extended implementation 
authorizations in the 800 MHz or 900 MHz SMR services, either by waiver 
or by Section 90.629 of the Commission's rules. Within these classes, 
``covered'' SMR providers was limited to only those licensees who 
offered real-time, two-way switched voice service that war 
interconnected with the public switched network, either on a stand-
alone basis or packaged with other telecommunication services. In that 
order, we stated that local SMR licensees offering mainly dispatch 
services to specialized customers in a non-cellular system 
configuration, as well as licensees offering only data, one-way, or 
stored voice services on an interconnected basis, were not covered by 
the roaming rule because they did not compete substantially with 
cellular and broadband PCS providers.
    16. In this Memorandum Opinion and Order on Reconsideration, the 
Commission concludes that modification of the scope of the ``manual'' 
roaming rule best serves the public interest. The amended Section 
20.12(a), promulgated in this order, changes the rule so that the set 
of ``covered'' providers clearly excludes providers who do not directly 
compete in the CMRS mass consumer two-way voice market. Consequently, 
the order modifies the scope of the manual roaming rule to apply only 
to CMRS providers that offer real-time two-way switched voice or data 
service that is interconnected with the public switched network using 
an in-network switching facility. Additionally, this revised definition 
of ``covered providers'' extends to cellular and broadband PCS 
providers as well. Finally, the Commission extends the rule to cover 
not only voice, but also data-only service as well.
    17. No petitions for reconsideration or comments were filed in 
direct response to the FRFA or to the related IRFA. In petitions for 
reconsideration or clarification, however, and in responsive pleadings, 
as well, some issues were raised that might affect small entities. 
Specifically, some commenters argued that the definition of ``covered'' 
SMR should be limited to systems that have an ``in-network'' switching 
facility or that serve at lease a minimum number of mobile unit, e.g., 
at least 100,000 mobile units that provide real-time, two-way 
interconnected voice services or that serve at least 20,000 or more 
subscribers nationwide. Another commenter argued that any definitional 
modification to the term ``covered'' SMR should exclude data-only SMR 
services.

III. Description and Estimate of the Number of Small Entities Affected 
by This Memorandum Opinion and Order on Reconsideration

    18. 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 our rules. The RFA generally defines the term ``small 
entity'' as having the same meaning as the terms ``small business,'' 
``small organization,'' and ``small governmental jurisdiction.'' In 
addition, the term ``small business'' has the same meaning as the term 
``small business concern'' under the Small Business Act. A small 
business concern is one which: (1) Is independently owned and operated; 
(2) is not dominant in its field of operation; and (3) satisfies any 
additional criteria established by the Small Business Administration 
(SBA). A small organization is generally ``any not-for-profit 
enterprise which is independently owned and operated and is not 
dominant in its field.'' Nationwide, as of 1992, there were 
approximately 275,801 small organizations. ``Small governmental 
jurisdiction'' generally means ``governments of cities, counties, 
towns, townships, villages, school districts, or special districts, 
with a population of less than 50,000.'' As of 1992, there were 
approximately 85,006 such jurisdictions in the United States. This 
number includes 38,978 counties, cities, and towns; of these, 37,566, 
or 96 percent, have populations of fewer than 50,000. The Census Bureau 
estimates that this ratio is approximately accurate for all 
governmental entities. Thus, of the 85,006 governmental entities, we 
estimate that 81,600 (91 percent) are small entities.
    19. The rule changes in this Memorandum Opinion and Order on 
Reconsideration could affect all small entities who are cellular, 
broadband PCS, and 800 MHz and 900 MHz SMR licensees. The licensees 
that are covered here are probably small businesses and probably not 
small governmental entities or small non-profit organizations. 
Additionally, the ``manual'' roaming rule, as modified, will apply to 
such licensees only if they offer real-time, two-way switched voice or 
data service that is interconnected with the public switched network 
and that utilizes an in-network switching facility that enables the 
provider to reuse frequencies and accomplish seamless hand-offs of 
subscriber calls.
    20. The Commission estimates the following number of small entities 
may be affected by the proposed rule changes. Cellular Licensees. 
Neither the Commission nor the SBA has developed a definition of small 
entities applicable to cellular licensees. Therefore, the applicable 
definition of a small entity is the definition under the SBA rules 
applicable to radiotelephone (wireless) companies. This provides that a 
small entity is a radiotelephone company employing no more than 1,500 
persons. According to the Bureau of the Census, only twelve 
radiotelephone firms from a total of 1,178 such firms which operated 
during 1992 had 1,000 or more employees. Therefore, even if all twelve 
of these firms were cellular telephone companies, nearly all cellular 
carriers were small businesses under the SBA's definition. In addition, 
we note that there are 1,758 cellular licenses;

[[Page 58480]]

however, a cellular licensee may own several licenses. In addition, 
according to the most recent Trends in Telephone Service data, 808 
carriers reported that they were engaged in the provision of either 
cellular service, Personal Communications Service (PCS), or Specialized 
Mobile Radio Telephone (SMR) service, which are placed together in the 
data. We do not have data specifying the number of these carriers that 
are not independently owned and operated or have more than 1,500 
employees, and thus are unable at this time to estimate with greater 
precision the number of cellular service carriers that would qualify as 
small business concerns under the SBA's definition. Consequently, we 
estimate that there are fewer than 732 small cellular service carriers 
that may be affected by the revised regulations adopted in this 
Memorandum Opinion and Order on Reconsideration.
    21. The rules adopted in this Memorandum Opinion and Order on 
Reconsideration will apply to cellular licensees only if they offer 
real-time, two-way switched voice or data service that is 
interconnected with the public switched network and that utilizes an 
in-network switching facility that enables the provider to reuse 
frequencies and accomplish seamless hand-offs of subscriber calls. 
Although the Commission does not have definitive information, we 
estimate that most or all small business cellular licensees offer 
services meeting this description.
    22. Broadband PCS Licensees. The broadband PCS spectrum is divided 
into six frequency blocks designated A through F, and the Commission 
has held auctions for each block. The Commission defined ``small 
entity'' for Blocks C and F as an entity that has average gross 
revenues of less than $40 million in the three previous calendar years. 
For Block F, an additional classification for ``very small business'' 
was added and is defined as an entity that, together with its 
affiliates, has average gross revenues of not more than $15 million for 
the preceding three calendar years. These regulations defining ``small 
entity'' in the context of broadband PCS auctions have been approved by 
the SBA. No small businesses within the SBA-approved definition bid 
successfully for licenses in Blocks A and B. There were 90 winning 
bidders that qualified as small entities in the Block C auctions. A 
total of 93 small and very small business bidders won approximately 40 
percent of the 1,479 licenses for Blocks D, E, and F. Based on this 
information, we conclude that the number of small broadband PCS 
licensees will include the 90 winning C Block bidders and the 93 
qualifying bidders in the D, E, and F blocks, for a total of 183 small 
entity PCS providers as defined by the SBA and the Commission's auction 
rules.
    23. Pursuant to modifications made in this Memorandum Opinion and 
Order on Reconsideration, the ``manual'' roaming rule will apply to 
broadband PCS licensees only if they offer real-time, two-way switched 
voice or data service that is interconnected with the public switched 
network and that utilizes an in-network switching facility that enables 
the provider to reuse frequencies and accomplish seamless hand-offs of 
subscriber calls. Although the Commission does not have definitive 
information, we estimate that most or all small business broadband PCS 
licensees offer services meeting this description.
    24. Estimates for SMR Licensees. Pursuant to 47 CFR 90.814(b)(1), 
the Commission has defined ``small business'' for purposes of 
auctioning 900 MHz SMR licenses, 800 MHz SMR licenses for the upper 200 
channels, and 800 MHz SMR licenses for the lower 230 channels as a firm 
that has had average annual gross revenues of $15 million or less in 
the three preceding calendar years. This small business size standard 
for the 800 MHz and 900 MHz auctions has been approved by the SBA. Any 
rules adopted in this Memorandum Opinion and Order on Reconsideration 
will apply to SMR licensees only if they offer real-time, two-way 
switched voice or data service that is interconnected with the public 
switched network and that utilizes an in-network switching facility 
that enables the provider to reuse frequencies and accomplish seamless 
hand-offs of subscriber calls. Although the Commission does not have 
definitive information, we estimate that very few small business, 
incumbent site-by-site SMR licensees offer services meeting this 
description. Geographic licensees are considered more likely to offer 
such services. In all cases, we provide estimates that are conservative 
so as to not underestimate the impact on small entities.
    25. Sixty winning bidders for geographic area licenses in the 900 
MHz SMR band qualified as small businesses under the $15 million size 
standard. We do not know which of these licensees will offer real-time, 
two-way switched voice or data service that is interconnected with the 
public switched network and that utilizes an in-network switching 
facility that enables the provider to reuse frequencies and accomplish 
seamless hand-offs of subscriber calls. We conservatively estimate that 
the number of small business 900 MHz SMR geographic area licensees that 
could be affected by rule modifications is at least 60.
    26. The auction of the 525 800 MHz SMR geographic area licenses for 
the upper 200 channels began on October 28, 1997, and was completed on 
December 8, 1997. Ten (10) winning bidders for geographic area licenses 
for the upper 200 channels in the 800 MHz SMR band qualified as small 
businesses under the $15 million size standard. We do not know which of 
these licensees will offer real-time, two-way switched voice or data 
service that is interconnected with the public switched network and 
that utilizes an in-network switching facility that enables the 
provider to reuse frequencies and accomplish seamless hand-offs of 
subscriber calls. Therefore, we conservatively estimate that the number 
of small business 800 MHz SMR geographic area licensees for the upper 
200 channels that could be affected by rule modifications is at 
approximately ten.
    27. The Commission anticipates that a total of 3,853 EA licenses 
will be auctioned in the lower 230 channels of the 800 MHz SMR service. 
This figured is derived by multiplying the total number of Economic 
Areas (EAs) (175) by the number of channel blocks (22) in the lower 230 
channels. Three additional upper band channels will be licensed as 
well. No party submitting or commenting on the petitions for 
reconsideration giving rise to our Reconsideration of October 8, 1999, 
commented on the potential number of small entities that might 
participate in the auction of the lower 230 channels and no reasonable 
estimate can be made. Therefore, we conclude that the number of 800 MHz 
SMR geographic area licensees for the lower 230 channels that may 
ultimately be affected by this rule modification could be as many as 
3,853.
    28. With respect to licensees operating under extended 
implementation authorizations, by November 1997 thirty-three licensees 
with extended implementation authority in the 800 MHz SMR Service were 
granted two years to complete the buildout of their systems. At this 
time, our records indicate that twenty-seven licensees with extended 
implementation authority still exist, but there may be as few as 
twenty-two remaining as independent entities. The Commission will soon 
receive filings that will clarify the situation. Until then, we assume 
that there are twenty-seven remaining licensees in this category and 
that they all qualify as small businesses.

[[Page 58481]]

However, we do not know how many of these licensees offer real-time, 
two-way switched voice or data service that is interconnected with the 
public switched network and that utilizes an in-network switching 
facility that enables the provider to reuse frequencies and accomplish 
seamless hand-offs of subscriber calls. Therefore, estimating 
conservatively, we conclude that the number of small business SMR 
licensees operating in the 800 MHz and 900 MHz bands under extended 
implementation authorizations that could be affected by a rule 
modification is up to 27 entities.
    29. The Commission does not have an accurate estimate of the number 
of incumbent site-by-site SMR licensees, and a reliable figure will not 
be available until the SMR site-by-site licensees migrate to the 
Universal Licensing System. Making this estimate is complicated by the 
number of recent transactions that have occurred in the 800 MHz SMR 
service. However, our task is also greatly simplified for purposes of 
this regulatory flexibility analysis because we are looking for a very 
specific type of SMR licensee. That is, the licensee must: first, 
qualify as a small business (i.e., average annual gross revenues of $15 
million or less in the three preceding calendar years); second, offer 
real-time, two-way switched voice or data service that is 
interconnected with the public switched network; and third, use an in-
network switching facility that enables the provider to reuse 
frequencies and accomplish seamless hand-offs of subscriber calls. 
These criteria greatly restrict the number of SMR providers who could 
be affected by this new rule. Although there may be SMR carriers who 
provide such services it is highly unlikely that they will be small 
entities or small businesses given the nature of the SMR providers and 
the development of that industry. Consequently, even though there may 
be no licensees that satisfy these criteria, we err on the sake of 
caution and conclude that 25 small entities may fall into this 
category.

IV. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    30. We anticipate that the rules adopted in this Memorandum Opinion 
and Order on Reconsideration will impose no reporting or recordkeeping 
requirements. The only compliance costs likely to be incurred, as a 
result, are administrative costs to ensure that an entity's practices 
are in compliance with the rule. The only compliance requirement of the 
new rules is that licensees subject to a manual roaming requirement 
(i.e., cellular licensees, broadband PCS licensees, and geographic area 
800 MHz and 900 MHz SMR licensees that offer real-time, two-way, 
interconnected switched voice and data service) would have to provide 
manual roaming service upon request to subscribers of covered services 
in good standing who are using technically compatible equipment.

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

    31. The Commission adopted the manual roaming rule, and generally 
affirms the rule in this Memorandum Opinion and Order on 
Reconsideration, in order, inter alia, to protect smaller and new CMRS 
providers of these services from likely competitive disadvantage. The 
Commission has reduced the potential impact of the new rules on small 
entities by continuing to exclude from its requirements those entities 
that have, traditionally, constituted the smallest of the SMR 
licensees, i.e., those licensees that do not provide real-time two-way 
voice or data services on an interconnected basis using in-network 
switching systems. The Commission has adopted an alternative definition 
of covered SMR that includes only those systems that have an in-network 
switching facility. This exception to coverage addresses the concerns 
of SMR providers that primarily offer traditional dispatch services but 
whose offer of limited interconnection capability might otherwise 
subject them to the manual roaming requirement. Such a result would 
have been inconsistent with the Commission's determination that only 
SMR providers that compete directly with cellular and broadband PCS 
should be subject to roaming requirements, because an important 
indicator of a provider's ability to compete with traditional cellular 
and broadband PCS providers is whether the provider's system has ``in-
network'' switching capability.
    32. By electing to adopt the in-network switching criterion, the 
Commission has rejected a definition of SMR covered services that would 
exempt SMR providers based on their particular number of mobile units 
or on capacity. The number of subscribers to an SMR system is not a 
reliable indicator of the system's capacity. Nor is it a reliable 
indicator of a system's ability to compete with cellular and broadband 
PCS providers. Thus, defining the term covered SMR in terms of its 
number of subscribers or its capacity could exempt from any manual 
roaming requirement those services that compete in markets where 
competitive conditions do not yet sufficiently ensure those customers 
seeking to roam access to roaming capabilities. As we stated in the 
Second Report and Order, and affirmed in this order, the manual roaming 
rule does not require any carrier to expand its capacity or to change 
its system in order to accommodate the needs of roamers.

Federal Rules Which Overlap, Duplicate, or Conflict With These Proposed 
Rules

    33. None.

Report to Congress

    34. The Commission will send a copy of this Memorandum Opinion and 
Order on Reconsideration, including a copy of this Supplemental Final 
Regulatory Flexibility Analysis, in a report to be sent to Congress 
pursuant to the Small Business Regulatory Enforcement Fairness Act of 
1996, see 5 U.S.C. 801(a)(1)(A).

VI. Ordering Clauses

    35. Accordingly, the authority of the rule amendments and 
clarifications appearing in the rule changes and discussed herein Are 
Adopted and Shall Be Effective November 28, 2000.
    36. The Petition for Reconsideration filed by the American Mobile 
Telecommunications Association (AMTA) in Docket No. 94-54 Is Granted to 
the extent indicated herein and otherwise Is Denied, and that AMTA's 
Petition for Declaratory Ruling in CC Docket No. 94-54 Is Dismissed As 
Moot.
    37. The Petition for Reconsideration and Clarification filed by the 
Nextel Communications in CC Docket No. 94-54 Is Granted to the extent 
such Petition seeks clarification and as indicated herein and otherwise 
is denied.
    38. The Petition for Reconsideration or Clarification filed by 
Small Business in Telecommunications in CC Docket No. 94-54 Is Granted 
to the extent indicated herein and otherwise Is Granted.
    39. The Office of Public Affairs, Reference Operations Division, 
shall send a copy of this Order on Reconsideration, including the 
Supplemental Final Regulatory Flexibility Analysis, to the Chief 
Counsel for Advocacy of the Small Business Administration.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

    Accordingly, for the reasons set forth in the preamble, Part 20 of 
Chapter 1 of Title 47 of the Code of Federal Regulations is amended as 
follows:

[[Page 58482]]

PART 20--[AMENDED]

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

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

    2. Section 20.12 is amended by revising paragraphs (a), (b)(1), and 
(c) to read as follows:


Sec. 20.12  Resale and roaming.

    (a) Scope of section. This section 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 (included in part 90, subpart S of this chapter) if such 
providers offer real-time, two-way switched voice or data service that 
is interconnected with the public switched network and utilizes an in-
network switching facility that enables the provider to reuse 
frequencies and accomplish seamless hand-offs of subscriber calls. The 
scope of paragraph (b) of this section, concerning the resale rule, is 
further limited so as to exclude from the requirements of that 
paragraph those Broadband Personal Communications Services C, D, E, and 
F block licensees that do not own and control and are not owned and 
controlled by firms also holding cellular, A, or B block licenses.
    (b) Resale. The resale rule is applicable as follows:
    (1) Each carrier subject to paragraph (b) of this section shall not 
restrict the resale of its services, unless the carrier demonstrates 
that the restriction is reasonable.
* * * * *
    (c) Roaming. Each carrier subject to this section must provide 
mobile radio service upon request to all subscribers in good standing 
to the services of any carrier subject to this section, including 
roamers, while such subscribers are located within any portion of the 
licensee's licensed service area where facilities have been constructed 
and service to subscribers has commenced, if such subscribers are using 
mobile equipment that is technically compatible with the licensee's 
base stations.

[FR Doc. 00-24964 Filed 9-28-00; 8:45 am]
BILLING CODE 6712-01-P


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