[Federal Register Volume 60, Number 86 (Thursday, May 4, 1995)]
[Rules and Regulations]
[Pages 21987-21992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11009]



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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 90

[PR Docket No. 89-553, GN Docket No. 93-252, PP Docket No. 93-253, FCC 
95-159]


Service Rules for SMR Systems in the 900 MHz Frequency Band

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Commission adopted a Second Report and Order, implementing 
final service rules to complete the licensing of the 900 MHz 
Specialized Mobile Radio (SMR) service. This Order implements the 
Commission's decision in the Third Report & Order in GN Docket No. 93-
252, (CMRS Third Report & Order), to license the 900 MHz band on a 
Major Trading Area (MTA) basis. The Second Report and Order also 
establishes technical and operational rules for the new MTA licensees, 
and defines the rights of SMR licensees already operating in the 900 
MHz band. This Second Report and Order also addresses issues raised on 
reconsideration of the CMRS Third Report & Order pertaining 
specifically to the 900 MHz SMR service.

EFFECTIVE DATE: June 5, 1995.

FOR FURTHER INFORMATION CONTACT:
Amy Zoslov, (202) 418-0620, Wireless Telecommunications Bureau.
SUPPLEMENTARY INFORMATION: This is a synopsis of the Second Report and 
Order, adopted April 14, 1995, released April 17, 1995. The complete 
text of this Second Report and Order is available for inspection and 
copying during normal business hours in the FCC Dockets Branch, Room 
239, 1919 M Street NW., Washington, D.C., and also may be purchased 
from the Commission's copy contractor, International Transcription 
Service, at (202) 857-3800, 2100 M Street NW., Suite 140, Washington, 
D.C. 20037.
Synopsis of the Second Report and Order
Adopted: April 14, 1995
Released: April 17, 1995
Comment Date: May 24, 1995
Reply Comment Date: June 1, 1995
I. Background
    1. When the Commission established the 900 MHz SMR service in 1986, 
it elected to use a two-phase licensing process. In Phase I, licenses 
were assigned in 46 ``Designated Filing Areas'' (DFAs) comprised of the 
top 50 markets. Phase II licensing, for facilities outside the DFAs, 
was frozen after 1986, when the Commission opened its filing window for 
the DFAs. In 1989, the Commission adopted a Notice of Proposed Rule 
Making in PR Docket 89-553, proposing to begin Phase II licensing of 
SMR facilities nationwide. In 1993, the Commission adopted a First 
Report & Order & Further Notice of Proposed Rule Making in PR Docket 
89-553 (Phase II First R&O & Further Notice), 58 FR 12176 (March 3, 
1993), modifying its Phase II proposal and seeking comment on whether 
to license the 900 MHz SMR band to a combination of nationwide, 
regional and local systems. Shortly thereafter, Congress amended the 
Communications Act to reclassify most SMR licensees as Commercial 
Mobile Radio Service (CMRS) providers and establish the authority to 
use competitive bidding to select from among mutually exclusive 
applicants for certain licensed services. The Commission deferred 
further consideration of Phase II and incorporated the 900 MHz SMR 
docket into its CMRS proceeding.
    2. In the CMRS Third Report & Order, 59 FR 59,945 (Nov. 21, 1994), 
the Commission further revised its Phase II proposals and established 
the broad outlines for the completion of licensing in the 900 MHz SMR 
band. The Commission left the specific service rules for the Phase II 
Order, which the Commission adopted herein. This Order also considers 
petitions for reconsideration of the CMRS Third Report & Order, 59 FR 
59,945 (Nov. 21, 1994) and ex parte presentations concerning, inter 
alia, secondary sites, loading requirements, treatment of incumbents 
vis a vis the MTA licensees, and coverage requirements. The Commission 
also affirms its rules governing channel blocks and MTA service areas; 
addresses coverage requirements for MTA licensees; provides incumbent 
licensees protection from interference by MTA licensees through 
geographic separation and short-spacing rules; provides for co-channel 
interference protection between adjacent MTA licensees, including 
signal level limitation, coordination of frequency usage, and emission 
mask rules; partially reconsiders its rules governing primary site 
protection; affirms its rules regarding loading requirements; provides 
channel block allocation for MTA licensees in Mexican and Canadian 
border areas; and modifies its rule regarding discontinuance of 
operation. Finally, the Commission applies the CMRS spectrum cap to 900 
MHz SMR licensees, and establish rules grandfathering incumbent PMRS 
licensees and foreign-ownership of private land mobile providers.
II. Second Report and Order
A. Service Rules

    3. Service Areas. In the CMRS Third Report & Order, 59 FR 59,945 
(Nov. 21, 1994), the Commission found that MTAs are the preferable 
service area for future 900 MHz SMR licensing. The limited success of 
existing 900 MHz SMR systems confined to providing service in DFAs 
weighs against the use of more numerous Basic Trading Areas (BTAs) or 
similarly small service areas. The Commission also found that MTA 
licensing is more likely to create opportunities for both existing 
licensees and new entrants to meet customer demands for wide-area 
service, and unlike larger regional or nationwide service areas, will 
not unnecessarily restrict entry to a small number of licensees. CMRS 
Third Report & Order, 59 FR 59,945 (Nov. 21, 1994). For those reasons, 
the Commission affirms its initial decision to license 900 MHz SMR 
licenses on an MTA basis.
    4. The Commission notes that Rand McNally & Company is the 
copyright owner of MTA listings, and an agreement in principal for a 
blanket copyright license has been reached between Rand McNally and the 
American Mobile Telecommunications Association. MTA licensees would 
[[Page 21988]] obtain a license to use Rand McNally's copyrighted 
material pursuant to this agreement upon payment to Rand McNally of 
$125.00 per each ten-channel block MTA license a grantee obtains. The 
agreement, along with the MTA listings and map, are available for 
public inspection at the Wireless Telecommunications Bureau's public 
reference room, Room 628, 1919 M Street NW., Washington, D.C. 20554. 
Copies also can be obtained by contacting Kim McLean, Marketing 
Coordinator, Rand McNally & Company, 8255 North Central Park, Skokie, 
IL 60076 (tel. (800) 333-0134) or AMTA, 1150 18th Street N.W., Suite 
250 Washington, D.C. 20036 (tel. (202) 331-7773). Grantees are free to 
negotiate their own licensing arrangement with Rand McNally. Grantees 
may not, however, rely on grant of an MTA-based SMR license as a 
defense to any claim of copyright infringement brought by Rand McNally.
    5. Channel Blocks. The 900 MHz SMR band is comprised of 20 blocks 
of 10 contiguous channels each, interleaved with channels assigned to 
other Part 90 services. The CMRS Third Report & Order, 59 FR 59,945 
(Nov. 21, 1994), provides that each 10-channel block would be 
separately licensed and that applicants would be permitted to aggregate 
blocks. Eligibility for any channel block would not be restricted, and 
both incumbents and new entrants would be allowed to bid without 
restriction for one or more 900 MHz blocks. An MTA licensee will be 
authorized to construct stations anywhere in its MTA on unoccupied 
channels that are available for construction, and to expand or modify 
facilities throughout its MTA provided that the system remains in 
compliance with the Commission's technical and operational rules, 
protects incumbents, and the licensee notifies the Commission of such 
changes. CMRS Third Report & Order, 59 FR 59,945 (Nov. 21, 1994). These 
rules will afford 900 MHz SMR MTA licensees the same flexibility 
afforded cellular and PCS licensees.
    6. Coverage Requirements. The CMRS Third Report & Order, 59 FR 
59,945 (Nov. 21, 1994), provides MTA licensees five years to construct 
and operate their systems, but deferred adoption of interim 
requirements to this proceeding. In this Second Report and Order, the 
Commission will require that MTA licensees provide coverage to one-
third of the population of their service area within three years of 
initial license grant and to two-thirds of the population of their 
service area within five years. Alternatively, at the five-year mark, 
MTA licensees may submit a showing to the Commission demonstrating that 
they are providing substantial service. In addition, licenses may 
resell party of their geographic area to help them fulfill coverage 
requirements. An MTA licensee must satisfy its coverage requirements 
regardless of the extent of the presence of incumbents within its MTA 
block, and failure to comply with these requirements will result in 
forfeiture of the entire MTA license. These standards are similar to 
those imposed on other wide-area CMRS licensees such as cellular and 
broadband PCS. The Commission states that these standards will allow 
for ubiquitous wide-area service to the public and protect incumbents, 
while deterring competitors from seeking MTA licenses for 
anticompetitive warehousing.
    7. Treatment of Incumbents. In the CMRS Third Report & Order, 59 FR 
59,945, (Nov. 21, 1994), the Commission determined that incumbent SMR 
systems in the 900 MHz MTA blocks are entitled to co-channel protection 
by MTA licensees, and that mandatory relocation of incumbents was not 
feasible in the 900 MHz band because no alternative 900 MHz SMR 
channels were available for relocation. The Commission instead stated 
that MTA licensees could negotiate mergers, buyouts, frequency swaps, 
or similar arrangements with incumbent systems on a voluntary basis. In 
furtherance of that policy, this Second Report & Order requires that 
MTA licensees afford protection to incumbent SMR systems pursuant to 47 
C.F.R. Sec. 90.621(b), by locating their stations at least 113 km (70 
mi.) from the facilities of any incumbent, by complying with the co-
channel separation standards set forth in our ``short-spacing'' rule, 
or by negotiating an even shorter distance with the incumbent licensee. 
See 47 C.F.R. Sec. 90.621(b)(4). This will adequately protect incumbent 
operations without hampering the ability of MTA licensees to construct 
stations throughout their authorized service area.
    8. While the CMRS Third Report & Order, 59 FR 59,945 (Nov. 21, 
1994), provides full co-channel interference protection for existing 
facilities, incumbent systems may not expand beyond existing service 
areas unless they obtain the MTA license for the relevant channels; the 
Commission did not, however, specifically define an incumbent's 
``existing service area.'' To provide incumbent licensees with 
additional flexibility, the Commission is defining an incumbent 
licensee's existing service area by its originally-licensed 40 dBu 
signal strength contour.
    9. Thus, incumbent licensees may add new transmitters in their 
existing service area without prior notification to the Commission, so 
long as their original 40 dBu signal strength contour is not expanded. 
Incumbent licensees will be required to notify the Commission of any 
changes in technical parameters or additional stations constructed 
through a minor modification of their license, including agreements 
with an MTA licensee to expand beyond their signal strength contour. 
These minor modification applications, however, will not be subject to 
public notice and petition to deny requirements or mutually exclusive 
applications. These rules will allow incumbents to continue existing 
operations without harmful interference and give them flexibility to 
modify or augment their systems so long as they do not encroach on the 
MTA licensee's operations.
    10. Interference Between Adjacent MTA Licensees. In the CMRS Third 
Report & Order, 59 FR 59,945 (Nov. 21, 1994), the Commission concluded 
that co-channel interference criteria for adjacent MTA licensees would 
be similar to those imposed on the cellular and PCS services in that 
they would only apply to transmitting locations near the boundaries of 
each licensee's MTA. Consistent with that objective, this Second Report 
and Order prohibits MTA licensees from exceeding a signal level of 40 
dBuV/M at their service area boundaries, unless all affected parties 
agree to a higher level. Co-channel adjacent MTA licensees and other 
affected parties must coordinate frequency usage. To the extent that a 
single licensee obtains licenses for adjacent MTAs on the same channel 
block, it will not be required to coordinate its operations in this 
manner. This approach provides MTA licensees a signal strength level 
sufficient to operate their systems up to the borders of their MTA 
licenses while protecting adjacent operations.
    11. Secondary Sites. In the CMRS Third Report & Order, 59 FR 59,945 
(Nov. 21, 1994), the Commission determined that incumbent systems are 
entitled to full co-channel interference protection for existing 
facilities, but are not allowed to expand beyond existing service areas 
unless they obtain the MTA license for the relevant channels. Several 
incumbent 900 MHz licensees have been granted authorizations to 
construct facilities outside of their DFAs on a secondary (i.e., 
unprotected) basis to link their facilities in different markets. As a 
practical matter, these [[Page 21989]] sites developed on an 
interference-free basis due to the freeze on primary licensing outside 
the DFAs. To prevent unnecessary disruption of existing operations, the 
Commission concluded that 900 MHz secondary sites licensed on or before 
August 9, 1994, would be afforded primary status, thus requiring new 
MTA licensees to afford them full co-channel interference protection.
    12. On reconsideration, the Commission amends its rules to extend 
protected status to all secondary sites filed on or before August 9, 
1994, even if they were not granted until after August 9. Granting 
primary site protection for these sites will promote uninterrupted 
service, and protect only a de minimis amount of new spectrum. 
Moreover, the Commission's delays in processing secondary site 
applications in the 900 MHz SMR service appear to have produced an 
inequitable result for applicants who otherwise would have been 
entitled to protection under the CMRS Third Report & Order, 59 FR 
59,945 (Nov. 21, 1994). Therefore, this Second Report and Order 
provides that all MTA licensees provide complete co-channel protection 
to all sites for which applications were filed on or before August 9, 
1994. Secondary sites based on applications filed after August 9, 1994, 
however, will not be afforded such protection.
    13. Loading Requirements. In the CMRS Third Report & Order, 59 FR 
59,945 (Nov. 21, 1994), the Commission determined that loading 
requirements, which were adopted in the SMR services to protect against 
spectrum warehousing, are not necessary for MTA-based licensing of 900 
MHz SMR, provided that licensees are subject to strict construction and 
coverage requirements. However, the Commission retained the loading/
automatic cancellation requirement for 900 MHz SMR incumbent licensees. 
See 47 C.F.R. Sec. 90.631(i). Because the 900 MHz SMR market is less 
mature than the 800 MHz SMR market, and because incumbent licensees are 
not required to achieve significant coverage of their service areas, 
the Commission found that loading requirements continue to serve a 
public interest purpose in the former.
    14. Based on the unique history and nature of the 900 MHz service 
as it has developed to date, the Commission affirms its decision in the 
CMRS Third Report & Order to retain loading requirements for incumbent 
900 MHz SMR licensees. The 900 MHz service is not a mature service, 
both because it was licensed more recently than 800 MHz and because 
Phase I licensing has been confined to limited service areas. Based on 
these factors, the Commission has already granted special relief to 900 
MHz licensees by providing them an additional two years to load their 
systems, on top of the five years originally granted. Report & Order, 
PR Docket No. 92-17, 57 FR 37731 (August 20, 1992). Having granted this 
relief, eliminating loading requirements for incumbent licensees who 
have failed to fully load their systems would not be in the public 
interest. Incumbents may overcome this obstacle by obtaining an MTA 
license, which exempts them from all previously applicable loading 
requirements. Moreover our policy of retaining loading requirements for 
incumbents will prevent the warehousing of spectrum, as once the 
Commission takes back channels from an incumbent who has not met 
loading requirements, the spectrum covered by the incumbent's 
authorization will automatically revert to the MTA licensee who has 
obtained the contingent rights to that spectrum. See, e.g., Further 
Notice of Proposed Rule Making, PR Docket No. 83-144, 59 FR 60111 
(November 22, 1994).
    15. Emission Masks. The Commission generally subjects mobile radio 
services to emission mask rules to restrict transmitter emissions on 
spectrum adjacent to the licensee's adjacent channel. In the CMRS Third 
Report & Order, 59 FR 59,945 (November 21, 1994), the Commission 
affirmed that the out-of-band emission rules should apply only where 
emissions have the potential to affect other licensees' operations. 
Consistent with the CMRS Third Report & Order, 59 FR 59,945 (Nov. 21, 
1994), the Commission will only apply emission mask rules to ``outer'' 
MTA channels in each block (i.e., channels on the outer edges of an MTA 
licensee's channel block that may present adjacent channel interference 
to other MTA licensees) and to ``interior'' MTA channels (i.e. channels 
inside of the MTA licensee's channel block assignment that are adjacent 
only to the licensee's channels and not to other licensees) where there 
are incumbent SMR licensees who will be affected by the MTA licensee's 
operations.
    16. These channels alone have the potential to affect operations 
outside of the MTA licensee's authorized bandwidth, and that the 
emission mask established in this Order will adequately protect other 
MTA licensees. Specifically, for wide-area licensees in the 900 MHz SMR 
band on any frequency outside the MTA licensee's frequency block, the 
peak power of any emission shall be attenuated below the transmitter 
power (P) by at least 43 plus 10 log<INF>10(P) decibels or 80 decibels, 
whichever is the lesser attenuation. As an exception to this 
requirement, if a single entity aggregates adjacent channel blocks, it 
will not be required to mask its emissions at the band edge of each 
ten-channel block.
    17. Mexican/Canadian Border Areas. In the CMRS Third Report & 
Order, 59 FR 59,945 (Nov. 21, 1994), the Commission noted that 900 MHz 
channel availability is limited in the Mexican and Canadian border 
areas and that limitations on ERP and antenna height have been placed 
on a number of the channels. See 47 C.F.R. Secs. 90.619(b)(2), 
90.619(d). Consequently, some channels may not be available to MTA 
licensees operating in border areas, and restrictions on ERP or antenna 
height will make them less attractive for MTA licensees. The creation 
of different channel allocations in border areas is administratively 
unworkable. Because applicants can assess the impact of border 
requirements in their valuation of these blocks for competitive bidding 
purposes, the Commission will use the same allocation of MTA channel 
blocks in border areas as in non-border areas. Therefore, use of 
channels in MTAs that encompass border areas will be subject to the 
relevant rules regarding international assignments and coordination of 
such channels.
    18. Discontinuance of Operation. Section 90.631(f) of the 
Commission's rules, 47 CFR Sec. 90.631(f), provides that SMR licenses 
cancel automatically if a licensee discontinues station operations for 
more than 60 consecutive days, unless the Commission authorizes 
additional time for station operations to remain discontinued. If 
additional time is not authorized, the license cancels automatically 
unless the station resumes operations within five days after the 
licensee receives the Commission's letter declining to authorize 
additional time. The Omnibus Budget Reconciliation Act of 1993, 
however, requires the Commission to modify its rules, to the extent 
``necessary and practical,'' to ensure that substantially similar 
services are subject to ``comparable technical requirements.'' 47 
U.S.C. Sec. 332(d)(3). Because the Commission concluded in the CMRS 
Third Report & Order, 59 FR 59,945 (Nov. 21, 1994), that 900 MHz SMR 
services compete or have the potential to compete with existing wide-
area CMRS service providers, the rules governing MTA licensees must be 
substantially similar to the rules governing cellular and PCS 
providers. Therefore, the Commission modifies Section 90.631(f) to 
include provisions comparable to those contained in 
[[Page 21990]] Section 22.317 for cellular operations. This will permit 
licensees to discontinue operations for 90 continuous days and removes 
any provisions for licensees to request an additional extension of this 
period.

B. Miscellaneous Matters

    19. Spectrum Cap and Attribution. An entity may hold up to 45 MHz 
of spectrum in the three radio services (broadband PCS, cellular, and 
SMR) in any geographic area. CMRS Third Report & Order, 59 FR 59,945 
(Nov. 21, 1994). The Commission will also apply a 20 percent cross-
ownership attribution rule for purposes of the spectrum aggregation 
limit. For example, an entity with 20 percent or greater ownership of a 
900 MHz SMR license who has 40 MHz of broadband PCS spectrum in a 
geographic market would reach the spectrum cap with 5 MHz of SMR 
spectrum in an MTA within that geographic market. Where cellular, 
broadband PCS and SMR licensees are held indirectly through intervening 
corporate entities, attribution will be determined through a 
multiplier. Memorandum Opinion & Order, GEN Docket No. 90-314, 60 FR 
13915 (March 15, 1995). Finally, 900 MHz SMR channels count toward the 
10 percent population overlap threshold adopted in the  CMRS Third 
Report & Order, 59 FR 59,945 (Nov. 21, 1994). Thus, a 900 MHz SMR 
provider's spectrum counts toward the spectrum cap if the carrier is 
licensed to serve ten percent or more of the population of the MTA.
    20. Grandfathering--Regulatory Classification. In the CMRS Second 
Report & Order, 59 FR 59,945 (Nov. 21, 1994), the Commission stated 
that SMR licensees are classified as CMRS if they offer interconnected 
service, and are otherwise classified as PMRS. All 900 MHz MTA 
licensees presumptively will be classified as CMRS providers. An MTA 
licensee, however, who was an incumbent in the 900 MHz service before 
August 10, 1993, is not subject to CMRS regulation until August 10, 
1996. 47 U.S.C. Sec. 332(c)(2)(B)).
    21. Foreign Ownership Waivers. The Budget Act amendments to the 
Communications Act permit the Commission to waive the application of 
Section 310(b) to any foreign ownership that lawfully existed before 
May 24, 1993, of any provider of a private land mobile service that 
will be treated as a common carrier, as a result of the Budget Act 
amendments, on the condition that the extent of foreign ownership not 
increase above the pre-May 24, 1993, level, and that no subsequent 
transfer of ownership is made to anyone in violation of Section 310(b). 
47 U.S.C. Sec. 332(b)(6). The Commission's decision to treat incumbent 
licensees as new applicants raise the question as to whether a waiver 
filed by an incumbent licensee will cover the MTA license, in the event 
that the incumbent wins the MTA license. The Commission will 
grandfather any timely filed waiver petitions with respect to the MTA 
license. Although the MTA license is considered a ``new'' license, the 
provider's existing facilities will be entirely subsumed in the new 
license. Thus, the Commission believes it is unnecessary to require an 
additional filing by an incumbent who wins the MTA license.

III. Procedural Matters

    22. Final Regulatory Flexibility Analysis. Pursuant to the 
Regulatory Flexibility Act of 1980, an Initial Regulatory Flexibility 
Analysis (IRFA) was incorporated in the Notice of Proposed Rule Making 
in GN Docket No. 93-252. Written comments on the IRFA were requested. 
The Commission's final analysis is as follows:
    A. Need for and purpose of the action. This rulemaking proceeding 
was initiated to implement Sections 332 and 3(n), respectively, of the 
Communications Act, as amended. The rules adopted herein will carry out 
Congress's intent to establish a consistent regulatory framework for 
all commercial mobile radio service (CMRS).
    B. Issues raised in response to the IRFA. No comments were 
submitted in response to the IRFA in GN Docket No. 93-252.
    C. Significant alternatives considered and rejected. All 
significant alternatives have been addressed in the Second Report & 
Order, and the CMRS Third Report & Order, 59 FR 59,945 (Nov. 21, 1994).
    23. Ordering Clauses. Accordingly, IT IS ORDERED, That the 
petitions for reconsideration ARE GRANTED to the extent described above 
and DENIED in all other respects.
    24. It is further ordered that Part 90 of the Commission's rules, 
47 C.F.R. Part 90, IS AMENDED, as indicated below. It is ordered that 
the rule changes herein will become effective 30 days after publication 
in the Federal Register.

List of Subjects in 47 CFR Part 90

    Radio.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Amendatory Text

    Part 90 of Chapter I of Title 47 of the Code of Federal Regulations 
is amended as follows:

PART 90--PRIVATE LAND MOBILE RADIO SERVICES

    1. The authority citation for Part 90 is revised to read as 
follows:

    Authority: 47 U.S.C. 154, 303, 309 and 332.

    2. Section 90.7 is amended by adding the definition for ``MTA 
license'' following the definition for ``Mobile station'' to read as 
follows:


Sec. 90.7  Definitions.

* * * * *
    MTA-based license or MTA license. A license authorizing the right 
to use a specified block of SMR spectrum within one of the 51 Major 
Trading Areas (``MTAs''), as embodied in Rand McNally's Trading Area 
System MTA Diskette and geographically represented in the map contained 
in Rand McNally's Commercial Atlas & Marketing Guide (the ``MTA Map.'') 
The MTA Listings, the MTA Map and the Rand McNally/AMTA license 
agreement are available for public inspection at the Wireless 
Telecommunications Bureau's public reference room, Room 628, 1919 M 
Street NW., Washington, DC 20554.
* * * * *
    3. Section 90.617 is amended by revising paragraph (d) introductory 
text, to read as follows:


Sec. 90.617  Frequencies in the 809.750-824/854.750-869 MHz, and 896-
901/935-940 MHz bands available for trunked or conventional system use 
in non-border areas.

* * * * *
    (d) The channels listed in Tables 4A and 4B are available only to 
eligibles in the SMR category, which consists of Specialized Mobile 
Radio (SMR) stations and eligible end users. The frequencies listed in 
Table 4B are available to SMR eligibles desiring to be authorized on 
MTA service areas in accordance with Section 90.661. SMR licensees 
licensed on the channels listed in Table 4B on or before August 9, 1994 
may continue to utilize these frequencies within their existing service 
areas, as provided in Section 90.661. This paragraph deals with the 
assignment of frequencies only in areas farther than 110 km (68.4 
miles) from the U.S./Mexico border and farther than 140 km (87 miles) 
from the U.S./Canada border. See Sec. 90.619 for the assignment 
[[Page 21991]] of SMR frequencies in these border areas. For stations 
located within 113 km (70 miles) of Chicago, channels 401-600 will be 
assigned in groups as outlined in Table 4C.
* * * * *
    4. Section 90.631 is amended by revising paragraphs (f) and (i) to 
read as follows:


Sec. 90.631  Trunked systems loading, construction and authorization 
requirements.

* * * * *
    (f) If a station is not placed in permanent operation, in 
accordance with the technical parameters of the station authorization, 
within one year, except as provided in Sec. 90.629, its license cancels 
automatically and must be returned to the Commission. For purposes of 
this section, a base station is not considered to be placed in 
operation unless at least two associated mobile stations, or one 
control station and one mobile station, are also placed in operation. 
An SMR licensee with facilities that have discontinued operations for 
90 continuous days is presumed to have permanently discontinued 
operations, unless the licensee notifies the FCC otherwise prior to the 
end of the 90 day period and provides a date on which operation will 
resume, which date must not be in excess of 30 additional days.
* * * * *
    (i) For SMRS category trunked systems licensed in the 896-901/935-
940 MHz band (other than MTA-licensed systems), if at the end of the 
initial five-year license term the licensee of such a trunked system 
has not satisfied the loading requirements of paragraph (b) of this 
section, the licensee requesting renewal of its license will be granted 
a renewal for only a two-year period. Regardless of the date of grant 
of the two-year renewal, the licensee will be required to comply fully 
with the minimum requirements set forth in paragraph (b) of this 
section at the end of the two-year renewal term. As an exception to 
this requirement, if the licensee obtains the MTA license covering its 
assigned spectrum in accordance with Sections 90.661 through 90.671, 
these loading requirements will no longer be applicable and the 
coverage requirements of Section 90.665 will govern.
    5. Subpart S is amended by adding a new heading following 
Sec. 90.659 to read as follows:

Policies Governing the Licensing and Use of MTA-Based SMR Systems in 
the 896-901/935-940 MHZ Band

    6. A new Sec. 90.661 is added to Subpart S to read as follows:


Sec. 90.661  MTA-based SMR service areas.

    MTA licenses for SMR spectrum blocks in the 896-901/935-940 MHz 
band listed in Table 4B of Section 90.617(d) are available in 51 Major 
Trading Areas (MTAs) as defined in Section 90.7. Within these MTAs, 
licenses will be authorized in ten channel blocks as specified in Table 
4B of Section 90.617(d) through the competitive bidding procedures 
described in Subpart U of this Part.
    7. A new Sec. 90.663 is added to Subpart S to read as follows:


Sec. 90.663  MTA-based SMR system operations.

    (a) MTA-based licensees authorized in the 896-901/935-940 MHz band 
pursuant to Section 90.661 may construct and operate base stations 
using any frequency identified in their spectrum block anywhere within 
their authorized MTA, provided that:
    (1) The MTA licensee affords protection, in accordance with Section 
90.621(b), to all sites for which applications were filed on or prior 
to August 9, 1994.
    (2) The MTA licensee complies with any rules and international 
agreements that restrict use of frequencies identified in their 
spectrum block, including the provisions of Section 90.619 relating to 
U.S./Canadian and U.S./Mexican border areas.
    (3) The MTA licensee limits its field strength at any location on 
the border of the MTA service area in accordance with Section 90.671 
and masks its emissions in accordance with Section 90.669.
    (b) In the event that the authorization for a previously authorized 
co-channel station within the MTA licensee's authorized spectrum block 
is terminated or revoked, the MTA licensee's co-channel obligations to 
such station will cease upon deletion of the facility from the 
Commission's licensing record. The MTA licensee then will be able to 
construct and operate base stations using such frequency.
    8. A new Sec. 90.665 is added to Subpart S to read as follows:


Sec. 90.665  Authorization, construction and implementation of MTA 
licenses.

    (a) MTA licenses in the 896-901/935-940 MHz band will be issued for 
a term not to exceed ten years.
    (b) MTA licensees in the 896-901/935-940 MHz band will be permitted 
five years to construct their stations. This five-year period will 
commence with the issuance of the MTA-wide authorization and will apply 
to all of the licensee's stations within the MTA spectrum block, 
including any stations that may have been subject to an earlier 
construction deadline arising from a pre-existing authorization.
    (c) MTA licensees in the 896-901/935-940 MHz band must, within 
three years, construct and place into operation a sufficient number of 
base stations to provide coverage to at least one-third of the 
population of the MTA. Further, each MTA licensee must provide coverage 
to at least two-thirds of the population of the MTA within five years 
or, alternatively, submit a showing to the Commission demonstrating 
that they are providing substantial service.
    (d) MTA licensees who fail to meet the coverage requirements 
imposed at either the third or fifth years of their construction 
period, or to make a convincing showing of substantial service, will 
forfeit their entire MTA license.
    9. A new Sec. 90.667 is added to Subpart S to read as follows:


Sec. 90.667  Grandfathering provisions for incumbent licensees.
    (a) These provisions apply to all 900 MHz SMR licensees who 
obtained licenses or filed applications on or before August 9, 1994 
(``incumbent licensees''). An incumbent licensee's service area shall 
be defined by its originally-licensed 40 dBu signal strength contour. 
Incumbent licensees are permitted to add new transmit sites in this 
existing service area without prior notification to the Commission so 
long as their original 40 dBu signal strength contour is not expanded. 
Incumbents will be required to notify the Commission of any changes in 
technical parameters or additional stations constructed with a minor 
modification application. These minor modification applications will 
not be subject to public notice and petition to deny requirements or 
mutually exclusive applications.
    (b) Applications in the 900 MHz SMR service for secondary sites 
filed after August 9, 1994 shall be authorized on a secondary, non-
interference basis to MTA licensee operations. No secondary sites shall 
be granted on this basis in an MTA once the MTA licensee has been 
selected.
    10. A new Sec. 90.669 is added to Subpart S to read as 
follows: [[Page 21992]] 


Sec. 90.669   Emission limits.

    (a) On any frequency in an MTA licensee's spectrum block that is 
adjacent to a non-MTA frequency, the power of any emission shall be 
attenuated below the transmitter power (P) by at least 43 plus 10 
log<INF>10(P) decibels or 80 decibels, whichever is the lesser 
attenuation.

    Note: The measurements of emission power can be expressed in 
peak or average values, provided they are expressed in the same 
parameters as the transmitter power.

    (b) When an emission outside of the authorized bandwidth causes 
harmful interference, the Commission may, at its discretion, require 
greater attenuation than specified in this section.
    11. A new Sec. 90.671 is added to Subpart S to read as follows:


Sec. 90.671  Field strength limits.

    The predicted or measured field strength at any location on the 
border of the MTA service area for MTA licensees shall not exceed 40 
dBuV/m unless all bordering MTA licensees agree to a higher field 
strength. MTA licensees are also required to coordinate their frequency 
usage with so-channel adjacent MTA licensees and all other affected 
parties. To the extent that a single entity obtains licenses for 
adjacent MTAs on the same channel block, it will not be required to 
coordinate its operations in this manner. In the event that this 
standard conflicts with the MTA licensee's obligation to provide co-
channel protection to incumbent licensees under Section 90.621(b), the 
requirements of Section 90.621(b) shall prevail.

[FR Doc. 95-11009 Filed 5-2-95; 12:52 pm]
BILLING CODE 6712-01-M