Federal Register / Vol. 60, No. 97 / Friday, May 19, 1995 / Proposed Rules 26861

procedures to choose from among two

or more mutually exclusive applications

for initial licenses for use of the radio

spectrum. Pursuant to this authority, the

Commission has conducted three

simultaneous multiple round auctions

for Personal Communications Service

(‘‘PCS’’) licenses (i.e., the Nationwide

Narrowband PCS auction, held from

July 25 through July 29, 1994; the

Regional Narrowband PCS auction, held

October 26, through November 8, 1994;

and the Broadband A and B block PCS

auction, held December 5, 1994, through

March 13, 1995). In each PCS auction,

bids were placed electronically using a

computer bidding system designed and

developed by the FCC in conjunction

with its auction contractors.

The Commission and its auction

contractors incurred significant costs in

developing the on-site electronic

bidding systems used in the PCS

auctions and the remote electronic

bidding system used in two of the PCS

auctions. The Commission recovered its

developments costs for the electronic

bidding system for the first three

auctions from the proceeds of those

actions. Additionally, the FCC’s auction

contractor was allowed to charge

bidders electing to use on-line remote

bidding system a $200.00 fee for the

proprietary remote bidding software

package and an on-line access charge.

The FCC has determined, based on its

auction experience, that remote

electronic bidding provides bidders

with an important and valuable service

as it enables them to place and

withdraw bids, access auction round

results and other FCC announcements

during the auction from their offices

using their personal computer. Thus,

bidders are not required to be physically

present at the auction site for the

duration of the auction. Because the

Commission will provide these services

directly to bidders, the Commission

proposes to recover the Federal

Government’s costs by charging bidders

a fee for the remote electronic bidding

software and an on-line access charge

via a 900 telephone service (‘‘900

service’’). Bidders will continue to have

the option of placing their bids

telephonically from remote locations via

an 800 telephone service at no charge.

Round results information is also

available to remote access bidders over

the Internet and the Commission’s

Bulletin Board at no charge.

The significant costs and expenses

incurred by the Federal Government in

developing the remote electronic

auction system have included

infrastructure design and

implementation, software development,

software testing, and administrative and

personnel costs associated with this

process. The Commission has developed

its own remote on-line bidding system

to be offered as a convenience to bidders

in future auctions, enabling bidders to

participate in auctions from their offices

using their personal computers, submit

and review applications, and access

auction round results information from

remote locations using a 900 service.

The Notice of Proposed Rulemaking

(‘‘NPRM’’) proposes to recover the costs

to the Government by charging bidders

who elect to bid electronically from

remote locations a fee for the remote

bidding software and for remote access

to the bidding system via the 900

service. The Commission’s remote

electronic bidding system will enable

bidders to participate in Commission

auctions, review applications, and

access auction round results

information from remote locations using

a Wide Area Network to connect with

the bidding system via a 900 telephone

service. The proposed rule would

recover future costs from bidders who

directly benefit from the services and

products offered by the Commission in

conjunction with holding the auctions.

Imposing such fees on bidders who

actually use the remote electronic

bidding system is the fairest and most

equitable manner for the Government to

recover its costs in developing,

maintaining, enhancing, and upgrading

the remote bidding system.

In proposing the fees, the Commission

has followed OMB guidance and

relevant court cases in calculating the

costs of the 900 service, remote access

bidding software, and bidder’s

information packages, utilizing ‘‘market

price’’ instead of ‘‘full cost’’ because it

is simpler, more practical, more

efficient, and more readily

ascertainable. As a result, based upon

market surveys for 900 service, remote

access bidding software, and bidder’s

information packages, the NPRM

proposes the following fees: $4.00 per

minute for 900 service; $200.00 per

package for remote bidding software,

one free bidder’s information package

and $16.00 for each additional bidder’s

information package requested by that

same person or entity.

The proposed fee of $4.00 per minute

for 900 service is based on the FCC’s

survey of the charges for similar on-line

services. The services surveyed were

mainly on-line reference and research

services operating in the open market

with sufficient competition to establish

a market-based price. FCC sampling

revealed that prices currently range

from $4.05 per minute to $4.42 per

minute (plus monthly account

maintenance fees). Even though the

average price for this type of services

$4.23 per minute, $4.00 per minute is

proposed. The proposed $200.00 fee for

the remote access bidding software

packages was based upon the open

market prices for similar software

packages. FCC research indicated that

the most comparable software package

currently available is $200.00 per

package and offered by only one

supplier. Due to highly specialized

nature of the remote access software, the

Commission could not identify other

comparable software packages for which

it could obtain additional market price

information. The proposed $16.00 fee

for each additional bidder’s information

package was developed by comparing

the average cost of producing bidder’s

information packages in the open

market amount commercial printing

firms. The previous prices ranged from

$13.50 to $18.50 (both figures include

postage), and $16.00 is the average of

this range. Payment procedures to

collect the fees are proposed as follows:

the fee for the 900 service will appear

as a charge on the user’s monthly

telephone bill; the fees for the software

packages and bidder’s information

packages will be collected by the

Commission’s auction contractor. Funds

received from the sale of auction

materials, software, or services,

pursuant to the IOAA, must go directly

to the U.S. Treasury.

This action is taken pursuant to

Sections 4(i), 7(a), 302, 303(c), 303(f),

303(g), and 303(r) of the

Communications Act of 1934, as

amended, 47 U.S.C. Sections 154(i),

157(a), 302, 303(c), 303(f), 303(g), and

303(r).

List of Subjects in 47 CFR Part 1

Administrative practice and

procedure.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 95–12462 Filed 5–18–95; 8:45 am]

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47 CFR Part 20

[GN Docket No. 93–252, FCC 95–156]

Regulatory Treatment of Mobile

Services

AGENCY: Federal Communications

Commission.

ACTION: Further notice of proposed

rulemaking.

SUMMARY: The Commission adopted a

Third Further Notice of Proposed

Rulemaking proposing to amend its 45
26862 Federal Register / Vol. 60, No. 97 / Friday, May 19, 1995 / Proposed Rules

MHz spectrum cap for cellular

telephone service, Specialized Mobile

Radio (SMR) service, and broadband

Personal Communications Service

(PCS). While the spectrum cap currently

applies only to licensees in these

services who are classified as

Commercial Mobile Radio Service

(CMRS) providers, the Commission

proposes to extend the cap to all

cellular, SMR, and broadband PCS

providers regardless of their regulatory

classification. The Third Further Notice

of Proposed Rulemaking also seeks

comment on applying the spectrum cap

to those ‘‘grandfathered’’ SMR licensees

who continue to be regulated as Private

Mobile Radio Service (PMRS) providers

until August 10, 1996. The intended

effect of the proposed rule for cellular,

SMR and PCS providers is to ensure

regulatory symmetry in the regulation of

competing commercial mobile radio

services.

DATES: Comments are to be filed on or

before June 5, 1995. Reply Comments

are to be filed on or before June 26,

1995.

ADDRESSES: Comments should be sent to

the Office of the Secretary, Federal

Communications Commission,

Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Lisa

Warner, (202) 418–0620, Wireless

Telecommunications Bureau.

SUPPLEMENTARY INFORMATION: This is a

synopsis of the Third Further Notice of

Proposed Rulemaking, adopted April

10, 1995, and released May 5, 1995. The

complete text of this Further Notice of

Proposed Rulemaking is available for

inspection and copying during normal

business hours in the FCC Dockets

Branch, Room 239, 1919 M Street NW.,

Washington, DC, 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, DC

20037.

Synopsis of the Third Further Notice of

Proposed Rulemaking

Adopted: April 10, 1995.

Released: May 5, 1995.

1. The Commission initially proposed

the spectrum cap in the Further Notice

of Proposed Rulemaking, GN Docket No.

93–252, 59 Fed. Reg. 28,042 (May 31,

1994), in this proceeding. The

Commission framed the spectrum cap

issue in terms of CMRS spectrum, and

did not address the aggregation of PMRS

spectrum. On August 9, 1994, in the

Third Report and Order in this

proceeding, GN Docket No. 93–252, 59

Fed. Reg. 59945 (Nov. 21, 1994), the

Commission applied the spectrum cap

only to cellular, SMR, and broadband

PCS services. The cap only applied to

cellular, SMR, and broadband PCS

licensees whose activities are regulated

as CMRS.

2. The Commission notes in the Third

Further Notice of Proposed Rulemaking

that there is potential for a licensee to

reduce the number of competitors by

aggregating spectrum regardless of

whether the licensee is providing CMRS

or PMRS. Moreover, the services

provided by PMRS providers may well

be viewed as competitive alternatives to

CMRS by customers; thus, excluding

them from the cap could provide PMRS

providers with an unfair competitive

advantage over CMRS providers. In

addition, even if most cellular, SMR,

and broadband PCS providers provide

CMRS services, as is likely to be the

case, determining the precise amount of

CMRS spectrum that should be

attributed for spectrum cap purposes is

likely to be difficult, particularly in the

case of PCS, SMR, and possibly cellular

licensees who provide both CMRS and

PMRS offerings under a single

authorization.

3. For all of these reasons, the

Commission proposes that the 45 MHz

spectrum cap be revised to apply to

cellular, SMR, and broadband PCS

licensees regardless of regulatory

classification. The Commission believes

that such a revision will greatly simplify

the application of the cap and will

provide greater certainty regarding its

effect to cellular, SMR, and broadband

PCS applicants and licensees.

Initial Regulatory Flexibility Analysis

4. As required by Section 603 of the

Regulatory Flexibility Act, the

Commission has prepared an Initial

Regulatory Flexibility Analysis (IRFA)

of the expected impact on small entities

of the policies and rules proposed in

this Further Notice of Proposed

Rulemaking. Written public comments

are requested on the IRFA.

5. Reason for Action: This rule

making proceeding was initiated to

secure comment on proposals for

revising the 45 MHz spectrum cap for

cellular telephone service, SMR, and

PCS. The spectrum cap currently

applies to CMRS providers. The

Commission proposes to extend the cap

to all cellular, SMR, and broadband PCS

providers regardless of their regulatory

classification. The proposals advanced

in the Third Further Notice of Proposed

Rulemaking are designed to implement

Congress’s goal of regulatory symmetry

in the regulation of competing

commercial mobile radio services as

described in Section 3(n) and 332 of the

Communications Act, 47 U.S.C.

§§ 153(n), 332, as amended.

6. Objective: The Commission

proposed to adopt a rule for cellular,

SMR and PCS providers that is intended

to ensure regulatory symmetry in the

regulation of competing commercial

mobile radio services.

7. Legal Basis: The proposed action is

authorized under Sections 3(n), 4(i),

332(a), 332(c) and 332(d) of the

Communications Act of 1934, 47 U.S.C.

§§ 153(n), 154(i), 332(a), 332(c) and

332(d), as amended.

8. Reporting, Recordkeeping, and

Other Compliance Requirements: Under

the proposal contained in the Third

Further Notice of Proposed Rulemaking

there are no additional reporting or

recordkeeping requirements.

9. Federal Rules Which Overlap,

Duplicate or Conflict With These Rules:

None.

10. Description, Potential Impact, and

Number of Small Entities Involved: The

Third Further Notice of Proposed

Rulemaking does not potentially affect

small entities. After evaluating

comments filed in response to the Third

Further Notice of Proposed Rulemaking,

the Commission will examine further

the impact of all rule changes on small

entities and set forth its findings in the

Final Regulatory Flexibility Analysis.

11. IFRA Comments: The Commission

requests written public comment on the

foregoing Initial Regulatory Flexibility

Analysis. Comments must have a

separate and distinct heading

designating them as responses to IRFA

and must be filed by the deadlines

provided above.

Ex Parte Rules—Non-Restricted

Proceeding

12. This is a non-restricted notice and

comment rule-making proceeding. Ex

Parte presentations are permitted,

except during the Sunshine Agenda

period, provided they are disclosed as

provided in Commission rules. See

generally 47 C.F.R. Sections 1.1202,

1.1203, and 1.1206(a).

List of Subjects in 47 CFR Part 20

Commercial mobile radio services.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 95–12299 Filed 5–18–95; 8:45 am]

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