Federal Register / Vol. 72, No. 219 / Wednesday, November 14, 2007 / Proposed Rules 64013 

1Advanced Wireless Services is the collective 

term we use for new and innovative fixed and 

mobile terrestrial wireless applications using 

bandwidth that is sufficient for the provision of a 

variety of applications, including those using voice 

and data (such as Internet browsing, message 

services, and full-motion video) content. Although 

AWS is commonly associated with so-called third 

generation (3G) applications and has been predicted 

to build on the successes of such current-generation 

commercial wireless services as cellular and 

Broadband Personal Communications Services 

(PCS), the services ultimately provided by AWS 

licensees are limited only by the Fixed and Mobile 

designation of the spectrum we allocate for AWS 

and the service rules we ultimately adopt for the 

bands. 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Parts 1, 15, 27, 90, and 101 

[WT Docket No. 07–195; FCC 07–164] 

Service Rules for Advanced Wireless 

Services in the 2155–2175 MHz Band 

AGENCY: Federal Communications 

Commission. 

ACTION: Proposed rule. 

SUMMARY: In this document, we seek 

comment on service rules for licensed 

fixed and mobile services, including 

Advanced Wireless Services (AWS), in 

the 2155–2175 MHz band (AWS–3). We 

seek comment on rules for licensing this 

newly designated spectrum in a manner 

that will permit it to be fully and 

promptly utilized to bring advanced 

wireless services to American 

consumers. Our objective is to allow for 

the most effective and efficient use of 

the spectrum in this band, while also 

encouraging development of robust 

wireless broadband services. We 

propose to apply our flexible, marketoriented rules to the band in order to 

meet this objective. 

DATES: Comments must be filed on or 

before December 14, 2007, and reply 

comments must be filed on or before 

January 14, 2008. 

ADDRESSES: Federal Communications 

Commission, 445 12th Street, SW., 

Washington, DC 20554. You may submit 

comments, identified by WT Docket No. 

07–195, by any of the following 

methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Federal Communications 

Commission’s Web site: http:// 

www.fcc.gov/cgb/ecfs/. Follow the 

instructions for submitting comments. 

• People with Disabilities: Contact 

the FCC to request reasonable 

accommodations (accessible format 

documents, sign language interpreters, 

CART, etc.) by e-mail: FCC504@fcc.gov 

or phone: 202–418–0530 or TTY: 202–

418–0432. 

For detailed instructions for 

submitting comments and additional 

information on the rulemaking process, 

see the SUPPLEMENTARY INFORMATION

section of this document. 

FOR FURTHER INFORMATION CONTACT: 

Kevin Holmes, Esq., at 202–418–0564. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s Notice of 

Proposed Rulemaking, released 

September 19, 2007. The complete text 

of this document, including attachments 

and related Commission documents, is 

available for inspection and copying 

during normal business hours in the 

FCC Reference Center (Room CY–A257), 

445 12th Street, SW., Washington, DC 

20554. The complete text of the Notice 

of Proposed Rulemaking and related 

Commission documents may be 

purchased from the Commission’s copy 

contractor, Best Copy and Printing, Inc., 

445 12th Street, SW., Room CY–B402, 

Washington, DC 20554, telephone 202–

488–5300, facsimile 202–488–5563, or 

you may contact BCPI at its Web site 

http://www.BCPIWEB.com. When 

ordering documents from BCPI please 

provide the appropriate FCC document 

number, for example, FCC 07–38. The 

Notice of Proposed Rulemaking is 

available on the Commission’s Web site: 

http://hraunfoss.fcc.gov/edocs_public/ 

attachmatch/FCC-07-164A1.doc. 

Pursuant to sections 1.415 and 1.419 

of the Commission’s rules, 47 CFR 

1.415, 1.419, interested parties may file 

comments and reply comments on or 

before the dates indicated on the first 

page of this document. Comments may 

be filed using: (1) The Commission’s 

Electronic Comment Filing System 

(ECFS), (2) the Federal Government’s 

eRulemaking Portal, or (3) by filing 

paper copies. See Electronic Filing of 

Documents in Rulemaking Proceedings, 

63 FR 24121 (1998). 

• Electronic Filers: Comments may be 

filed electronically using the Internet by 

accessing the ECFS: http:// 

www.fcc.gov.cgb/ecfs/ or the Federal 

eRulemaking Portal: http:// 

www.regulations.gov. Filers should 

follow the instructions provided on the 

Web site for submitting comments. 

• For ECFS filers, if multiple docket 

or rulemaking numbers appear in the 

caption of this proceeding, filers must 

transmit one electronic copy of the 

comments for each docket or 

rulemaking number referenced in the 

caption. In completing the transmittal 

screen, filers should include their full 

name, U.S. Postal Service mailing 

address, and the applicable docket or 

rulemaking number. Parties may also 

submit an electronic comment by 

Internet e-mail. To get filing 

instructions, filers should send an email to ecfs@fcc.gov, and include the 

following words in the body of the 

message, ‘‘get form.’’ A sample form and 

directions will be sent in response. 

• Paper Filers: Parties who choose to 

file by paper must file an original and 

four copies of each filing. If more than 

one docket or rulemaking number 

appears in the caption of this 

proceeding, filers must submit two 

additional copies for each additional 

docket or rulemaking number. 

Filings can be sent by hand or 

messenger delivery, by commercial 

overnight courier, or by first-class or 

overnight U.S. Postal Service mail 

(although we continue to experience 

delays in receiving U.S. Postal Service 

mail). All filings must be addressed to 

the Commission’s Secretary, Office of 

the Secretary, Federal Communications 

Commission. 

• The Commission’s contractor will 

receive hand-delivered or messengerdelivered paper filings for the 

Commission’s Secretary at 236 

Massachusetts Avenue, NE., Suite 110, 

Washington, DC 20002. The filing hours 

at this location are 8 a.m. to 7 p.m. All 

hand deliveries must be held together 

with rubber bands or fasteners. Any 

envelopes must be disposed of before 

entering the building. 

• Commercial overnight mail (other 

than U.S. Postal Service Express Mail 

and Priority Mail) must be sent to 9300 

East Hampton Drive, Capitol Heights, 

MD 20743. 

• U.S. Postal Service first-class. 

Express, and Priority mail should be 

addressed to 445 12th Street, SW., 

Washington, DC 20554. 

People with Disabilities: To request 

materials in accessible formats for 

people with disabilities (braille, large 

print, electronic files, audio format), 

send an e-mail to fcc504@fcc.gov or call 

the Consumer & Governmental Affairs 

Bureau at 202–418–0530 (voice), 202–

418–0432 (tty). 

I. Summary of Notice of Proposed 

Rulemaking 

1. In this Notice of Proposed 

Rulemaking, we consider application, 

licensing, operating, and technical rules 

for Advanced Wireless Services (AWS) 1

in the 2155–2175 MHz band (AWS–3). 

Moreover, because the available 

spectrum is one 20-megahertz segment 

as opposed to two separate bands, the 

symmetrical pairing approach 

previously used by the Commission for 


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64014 Federal Register / Vol. 72, No. 219 / Wednesday, November 14, 2007 / Proposed Rules 

2See Service Rules for Advanced Wireless 

Services in the 1.7 GHz and 2.1 GHz Bands, WT 

Docket No. 02–353, Report and Order, 18 FCC Rcd 

25162 (2003) (AWS–1 Service Rules Report and 

Order); modified by Service Rules for Advanced 

Wireless Services in the 1.7 GHz and 2.1 GHz 

Bands, WT Docket No. 02.353, Order on 

Reconsideration, WT Docket No. 02–353, 20 FCC 

Rcd 14058 (2005); see also Service Rules for 

Advanced Wireless Services in the 1915–1920 MHz, 

1995–2000 MHz, 2020–2025 MHz and 2175–2180 

MHz Bands; Service Rules for Advanced Wireless 

Services in the 1.7 GHz and 2.1 GHz Bands, WT 

Docket No. 04–356; WT Docket No. 02–353, Notice 

of Proposed Rulemaking, 19 FCC Rcd 19263 (2004) 

(AWS–2 Service Rules NPRM). 

3TDD, for example, places base and mobiles 

transmissions on the same channel, but in different 

time slots, while HFDD uses separate, adjacent 

channels in different time slots for base and mobile 

transmissions. We note that several of the recently 

dismissed applications for licenses in this band, see 

infra note 5, proposed technologies that would 

allow the use of both mobile and base station 

transmissions. FDD, on the other hand, employs 

spectrally separated base and mobile transmit 

channels with base and mobile transmissions 

occurring at the same time. WiMax is a new 

application, which supports TDD, FDD, and HFDD 

access technologies. 

4For example, if the AWS–3 spectrum at 2155–

2175 MHz is used for base-transmit, it could 

theoretically be paired with mobile-transmit 

spectrum from the Personal Communications 

Services (PCS) at 1850–1910 MHz, AWS–1 at 1710–

1755 MHz, proposed AWS–2 spectrum at 1915–

1920 MHz or 2020–2025 MHz, or Nextel/1.9 GHz 

spectrum at 1910–1915 MHz. 

5Seven parties filed applications for licenses to 

provide service in the 2155–2175 MHz band, which 

we recently dismissed without prejudice in an 

Order released August 31, 2007. See Applications 

for License and Authority to Operate in the 2155–

2175 MHz Band, WT Docket No. 07–16, Order; 

Petitions for Forbearance Under 47 U.S.C. 160, WT 

Docket No. 07–30, Order, FCC 07–161 (rel. Aug. 31, 

2007) (AWS–3 Applications and Forbearance 

Petitions Order), Appeal and Petitions for 

Reconsideration pending. On May 5, 2006, M2Z 

filed an application seeking an exclusive, 

nationwide, 15-year license in the 2155–2175 MHz 

band to operate a wireless broadband network. Six 

additional applications for license and authority to 

operate in the band were filed in March 2007—by 

Commnet Wireless, LLC; McElroy Electronics Corp.; 

NetfreeUS, LLC; NextWave Broadband, Inc.; Open 

Range Communications, Inc.; and TowerStream 

Corporation. 

AWS spectrum 2 is not possible. 

Therefore, among other things, we: 

fl Seek comment on the use of an 

‘‘uplink/downlink approach’’ to 

licensing the spectrum, which would 

permit the use of technologies that 

allow for both mobile and base 

transmissions in the band, such as 

technologies based on Time Division 

Duplexing (TDD) or Half-Duplex 

Frequency Division Duplexing (HFDD),3

and on methods to resolve any 

interference challenges that may be 

associated with such an approach. 

fl Seek comment on a ‘‘structured 

uplink/downlink approach,’’ which 

would permit both mobile-plus-base 

transmit operations and base transmit 

operations, but only in particular parts 

of the band, as dictated by the band plan 

set by the Commission. 

fl Seek comment on a ‘‘downlink 

approach’’ for the AWS–3 spectrum, 

which would limit use of the 2155–2175 

MHz band to base transmissions only, 

but would enable licensees to use this 

spectrum in combination with other 

Frequency Division Duplexing (FDD) 

bands.4

fl Seek comment on whether an 

auction of licenses in a simplified 

subset of alternative band plans might 

best further our overall goals in this 

proceeding. 

fl Seek comment on the appropriate 

license block size for the 2155–2175 

MHz band under each of the three 

technical approaches under 

consideration for this band. 

fl Seek comment on whether to 

license the band using a geographic area 

licensing scheme, under our flexible, 

market-oriented part 27 rules, as well as 

on the appropriate geographic license 

block size for the band. 

fl Seek comment on interference 

issues specific to the band under each 

of the three technical approaches under 

consideration for this band. 

fl Seek comment on whether to 

adopt a boundary limit approach to 

limit co-channel interference that could 

be caused by AWS licensees operating 

in the 2155–2175 MHz band. 

fl Propose that AWS licensees 

operating in the 2155–2175 MHz band 

should be required to coordinate with 

incumbent Fixed Service (FS) licensees 

operating on co-channel and adjacent 

channel spectrum in the band prior to 

initiating operations. 

fl Seek comment on our proposals 

on the power limits, out-of-band 

emission restrictions, and other 

technical or operational requirements 

that might be needed to prevent harmful 

interference to operations in adjacent 

bands. 

fl Seek comment on whether any 

limit should be placed on the heightabove-average-terrain (HAAT) of base or 

fixed station antennas operating in the 

2155–2175 MHz band. 

fl Propose to permit any use of this 

spectrum that is consistent with the 

band’s fixed and mobile allocations. 

fl Seek comment on whether we 

should adopt any of the various specific 

conditions proposed by parties that filed 

applications for operation in this band 

and other parties, including conditions 

to govern the provision of broadband 

services at particular data rates, with 

specific build out requirements, and 

pricing plans, with potential access 

requirements, content restrictions and 

free access to public safety entities.5 For 

example, M2Z Networks, Inc. (M2Z), 

has suggested that the licensees in this 

band should be subject to certain public 

interest requirements, including the 

provision of free broadband Internet 

service at certain data rates and certain 

population-based build out benchmarks. 

NextWave Broadband, Inc., suggested 

the Commission should consider 

licensing this spectrum in a manner that 

would avoid the filing of mutually 

exclusive applications, and accordingly 

allow licensing on a non-auctioned 

basis. 

fl Seek comment on the benefits and 

costs of establishing an unlicensed 

regime, either in lieu of a licensed 

regime or as a complement to the 

licensed regime (by permitting an 

unlicensed underlay). 

fl Seek comment on using a nonexclusive licensing approach for this 

band, similar to the rules adopted in the 

3650–3700 MHz band. 

fl Propose that the foreign 

ownership provisions of § 27.12 should 

apply to applicants applying for licenses 

in the 2155–2175 MHz band. 

fl Propose not to impose a spectrum 

aggregation limit or eligibility 

restrictions for the 2155–2175 MHz 

band. 

fl Note that, to the extent that a 

licensee in the 2155–2175 MHz band 

provides a Commercial Mobile Radio 

Service, such service would be subject 

to the provisions of part 20 of the 

Commission’s rules, including 911/E911 

and hearing aid-compatibility (HAC) 

requirements, along with the provisions 

in the rule part under which the license 

was issued. 

fl Propose that the threshold for 

environmental review of fixed 

transmission facilities should be an 

effective radiated power (ERP) greater 

than 1000 Watts. 

fl Propose to employ our part 1 

competitive bidding rules, if the 

Commission establishes a licensing 

regime that requires the use of 

competitive bidding to resolve mutually 

exclusive applications; seek comment 

on whether any of our part 1 rules 

would be inappropriate or should be 

modified for an auction of licenses in 

this band. 

fl Propose to define a small business 

as an entity with average annual gross 

revenues for the preceding 3 years not 

exceeding $40 million, and a very small 

business as an entity with average 

annual gross revenues for the preceding 

3 years not exceeding $15 million. 

fl Propose to provide small 

businesses with a bidding credit of 15 

percent and very small businesses with 

a bidding credit of 25 percent if we 

establish non-nationwide service areas, 

and seek comment on whether, if we 

decide to license the 2155–2175 MHz 


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Federal Register / Vol. 72, No. 219 / Wednesday, November 14, 2007 / Proposed Rules 64015 

6 In the November, 2002 AWS Allocation Second 

Report and Order, the Commission identified and 

reallocated 90 megahertz (1710–1755 MHz and 

2110–2155 MHz bands) to the fixed and mobile 

services for AWS. See 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, ET 

Docket No. 00–258, Second Report and Order, 17 

FCC Rcd 23193 (2002) (AWS Allocation Second 

Report and Order). In the September, 2004 AWS 

Allocation Sixth Report and Order, the Commission 

designated 20 megahertz (1915–1920 MHz, 1995–

2000 MHz, 2020–2025 MHz, and 2175–2180 MHz 

bands) for fixed and mobile services that include 

AWS. See 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, ET 

Docket No. 00–258, Sixth Report and Order, Third 

Memorandum Opinion and Order and Fifth 

Memorandum Opinion and Order, 19 FCC Rcd 

20720 (2004) (AWS Allocation Sixth Report and 

Order). With regard to the 20-megahertz block at 

2155–2175 MHz, the 2160–2165 MHz band was 

already allocated for non-Federal Government fixed 

services and mobile services. See 47 CFR 21, 22, 

and 101. In the AWS Allocation Third Report and 

Order, the 2165–2180 MHz band was reallocated for 

fixed and mobile services, including AWS. See 

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, ET Docket No. 00–

258, Third Report and Order, Third Notice of 

Proposed Rulemaking and Second Memorandum 

Opinion and Order, 18 FCC Rcd. 2223, 2238 ¶ 28 

(2002) (AWS Allocation Third Report and Order & 

NPRM). In 2005, the Commission allocated 2155–

2160 MHz for fixed and mobile services, including 

AWS, and designated the entire 2155–2175 MHz 

band as AWS spectrum. See 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, ET Docket No. 00–258, Eighth 

Report and Order and Fifth Notice of Proposed 

Rulemaking and Order, 20 FCC Rcd 15866, 15872 

¶ 9 (2005) (AWS Allocation Eighth Report and 

Order and Fifth NPRM). 

7See AWS–1 Service Rules Report and Order, 

supra note 2. 

8See AWS–2 Service Rules NPRM, supra note 2. 

9See 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, ET Docket No. 00–

258, Ninth Report and Order and Order, FCC 06–

45 (rel. April 21, 2006) (AWS Ninth R&O). See also 

AWS Allocation Eighth Report and Order and Fifth 

NPRM). 

10See 47 CFR 101.79(a)(1) (10-year sunset date); 

27 CFR 27.1174 (Termination of Cost-Sharing 

Obligations). 

11See 47 CFR 27.1253(a) (Sunset Provisions). 

12See generally 47 CFR 1.1202, 1.1203, 1.1206. 

13 5 U.S.C. 603. 

14Pub. L. 107–198, see 44 U.S.C. 3506(c)(4). 

15See NPRM, para. 1, supra. 

band on a nationwide basis, small 

business credits would be appropriate 

for this band. 

2. Since 2001, the Commission has 

designated 130 megahertz of spectrum 

for use by advanced wireless services.6

Corresponding service rules have been 

adopted for 90 megahertz of the 

spectrum in the 1710–1755 MHz and 

2110–2155 MHz bands (AWS–1).7 In 

addition, service rules have been 

proposed for another 20 megahertz in 

the 1915–1920 MHz, 1995–2000 MHz, 

2020–2025 MHz, and 2175–2180 MHz 

bands (AWS–2).8 In this Notice of 

Proposed Rulemaking, the Commission 

proposes service rules for an additional 

20 megahertz of spectrum for a third 

AWS block (AWS–3) at 2155–2175 

MHz, adjacent to the 2110–2155 MHz 

band of AWS–1 and the 2175–2180 

MHz band of AWS–2. 

3. There are numerous incumbents in 

the 2155–2175 MHz band, which 

contains over 1,800 active licenses. 

These incumbents consist primarily of 

Fixed Microwave Service (FS) and 

Broadband Radio Service (BRS) 

licensees, who are subject to relocation 

by emerging technology (ET) licensees 

(including future AWS–3 licensees). 

The Commission has already addressed 

relocation and cost-sharing issues with 

respect to the 2155–2175 MHz band in 

a separate proceeding based on the 

assumption that the AWS–3 band would 

be exclusively licensed.9 Generally, 

incumbents retain primary status unless 

and until an ET licensee requires use of 

the spectrum. AWS–3 licensees will be 

required to relocate, or share in the cost 

of a relocation paid for by other AWS 

licensees (including, possibly, AWS–1 

licensees), until the relocation and cost 

sharing rules ‘‘sunset.’’ For FS, the rules 

sunset ten years after the first ET license 

is issued in the 2160–2175 MHz band.10

For BRS, the rules sunset 15 years after 

the first AWS license is issued in the 

2150–2160/62 MHz band.11 Although 

we do not anticipate having to adopt 

any further rules regarding these issues, 

we do seek comment on whether 

changes may be necessary in light of the 

service rules we adopt. 

Procedural Matters 

Ex Parte Rules—Permit-But-Disclose 

4. This is a permit-but-disclose notice 

and comment rulemaking proceeding. 

Ex parte presentations are permitted, 

except during the Sunshine Agenda 

period, provided they are disclosed 

pursuant to the Commission’s rules.12

Initial Regulatory Flexibility Analysis 

5. As required by the Regulatory 

Flexibility Act of 1980 (RFA),13 the 

Commission has prepared an Initial 

Regulatory Flexibility Analysis (IRFA) 

of the possible significant economic 

impact on small entities of the policies 

and rules proposed in the NPRM. The 

analysis is found in the attached 

Appendix. We request written public 

comment on the analysis. Comments 

must be filed by the dates listed in this 

NPRM, and must have a separate and 

distinct heading designating them as 

responses to the IRFA. The 

Commission’s Consumer and 

Governmental Affairs Bureau, Reference 

Information Center, will send a copy of 

this NPRM, including the IRFA, to the 

Chief Counsel for Advocacy of the Small 

Business Administration. 

Initial Paperwork Reduction Analysis 

6. This document contains proposed 

new or modified information collection 

requirements. The Commission, as part 

of its continuing effort to reduce 

paperwork burdens, invites the general 

public and the Office of Management 

and Budget (OMB) to comment on the 

information collection requirements 

contained in this document, as required 

by the Paperwork Reduction Act of 

1995, Pub. L. 104–13. Public and agency 

comments are due 60 days after date of 

publication in the Federal Register. 

Comments should address: (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 the 

respondents, including the use of 

automated collection techniques or 

other forms of information technology. 

In addition, pursuant to the Small 

Business Paperwork Relief Act of 

2002,14 we seek specific comment on 

how we might ‘‘further reduce the 

information collection burden for small 

business concerns with fewer than 25 

employees.’’

A. Need for, and Objectives of, the 

Proposed Rules 

7. The NPRM contemplates service 

rules for licensed fixed and mobile 

services, including advanced wireless 

services (AWS), in the 2155–2175 MHz 

band. These service rules include 

application, licensing, operating and 

technical rules and competitive bidding 

provisions for the AWS–3 spectrum 

band.15 Consistent with the 

Commission’s policy objective of 

affording licensees the flexibility to 

deploy new technologies, to implement 

service innovations, and to respond to 

market forces, the NPRM proposes 

service rules that provide AWS–3 

licensees with the flexibility to provide 


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64016 Federal Register / Vol. 72, No. 219 / Wednesday, November 14, 2007 / Proposed Rules 

16 Id. 

17See AWS Allocation Eighth Report and Order 

and Fifth NPRM. 

18See NPRM, para. 1, supra. 

19 Id. 

20 Id. 

any fixed or mobile service, including 

advanced wireless services, that is 

consistent with the allocations 16 for this 

spectrum. To promote flexibility, the 

NPRM also proposes to license this 

spectrum under the Commission’s 

market-oriented part 27 rules. The 

substantial flexibility provided by the 

part 27 rules would encourage the 

deployment of a wide variety of fixed 

and mobile services. The marketoriented licensing framework for these 

bands would ensure that this spectrum 

is efficiently utilized and will foster the 

development of new and innovative 

technologies and services, as well as 

encourage the growth and development 

of broadband services, ultimately 

leading to greater benefits to consumers. 

8. The NPRM seeks to adopt rules that 

will reduce regulatory burdens, promote 

innovative services, and encourage 

flexible use of this spectrum. Such an 

approach opens up economic 

opportunities to a variety of spectrum 

users, which could include small 

businesses. The NPRM considers 

various proposals and alternatives 

partly because the Commission seeks to 

minimize, to the extent possible, the 

economic impact on small businesses. 

9. The NPRM contemplates three 

different technological approaches. 

First, the NPRM contemplates an 

approach that would allow uplink/ 

downlink in the band, possibly resulting 

in an unpaired 20-megahertz spectrum 

band that could be used for Time 

Division Duplexing (TDD) or HalfDuplex Frequency Division Duplexing 

(HFDD) based technology. Second, the 

Commission could also adopt a 

structured uplink/downlink approach 

where a mix of both base-transmit and 

mobile-and-base transmit services 

would be utilized in the band. Under 

this approach, some or portions of the 

2155–2175 MHz band could be 

asymmetrically paired with other baseand mobile-transmit spectrum blocks 

with pairings composed of different 

bandwidths. Alternatively, the NPRM 

seeks comment on an approach that 

would permit only base transmissions 

in the band. Under this approach, some 

or portions of the 2155–2175 MHz band 

could be asymmetrically paired with 

other base- and mobile-transmit 

spectrum blocks with pairings 

composed of different bandwidths. The 

Commission contemplates rules which 

will determine the appropriate approach 

to utilize. 

10. Prior to the adoption of the NPRM, 

the Commission adopted an Eighth 

Report and Order, in ET Docket No. 00–

258, allocating 2155–2160 MHz for fixed 

and mobile services, including AWS, 

and designated the entire 2155–2175 

MHz band as AWS spectrum.17 The 

Commission’s goal is to enable service 

providers to maximize the use of this 

spectrum with minimal transaction 

costs. Within the limits of the licensed 

fixed and mobile allocation, the 

marketplace and not the Commission 

will determine how this spectrum is 

used. Thus, the NPRM’s proposals allow 

flexibility for licensees to provide third 

generation (3G) and other advanced 

wireless services in the near term, while 

fostering innovation and agility so they 

can quickly adapt to changes in 

technological capabilities and 

marketplace conditions into the future. 

It is the Commission’s belief that the 

licensing and service rules proposed in 

the NPRM will benefit consumers by 

giving them the services and value that 

they demand, and thereby provide the 

new business opportunities necessary to 

support continued service 

enhancements by licensees. 

11. The Commission also 

contemplates rules which will have the 

effect of setting performance 

requirements. An issue we frame is 

whether licensees in the 2155–2175 

MHz band should be subject to any 

performance requirements in addition to 

a substantial service requirement at 

license renewal. The NPRM notes that 

in some services the Commission has 

imposed minimum coverage 

requirements on licensees to ensure that 

spectrum is used effectively and service 

is implemented promptly. A related 

issue is whether the Commission should 

establish any specific coverage 

requirements in the 2155–2175 MHz 

band, or whether coverage criteria 

should be adopted as one means, but 

not the exclusive means, of meeting a 

substantial service requirement. We 

propose for consideration the issue of 

whether licensees should be subject to 

interim performance requirements prior 

to the end of the license term. 

12. The NPRM also contemplates 

rules that will allow licensees in the 

2155–2175 MHz band to partition their 

service areas and to disaggregate their 

spectrum. If the Commission permits 

partitioning, then the partitioning 

licensee would have to include with its 

request a description of the partitioned 

service area, a calculation of the 

population of the partitioned service 

area, and the licensed geographic 

service area. 

13. The NPRM also contemplates 

rules on a number of technical issues 

and licensing obligations. A major 

concern in this context is about how 

best to control in-band and out-of-band 

interference, appropriate power limits, 

RF safety limits, and Canadian and 

Mexican coordination.18 The NPRM 

also proposes to permit applicants to 

request common carrier status as well as 

non-common carrier status for 

authorization in a single license, rather 

than to require the applicant to choose 

between common carrier and noncommon services.19

14. In addition, the NPRM 

contemplates operations for licensing 

the new services. For example, the FCC 

is considering whether to license the 

AWS–3 spectrum using geographic 

licensing, as opposed to site-by-site 

licensing. 

15. The Commission contemplates the 

appropriate size(s) of the geographic 

service area or areas on which licenses 

should be based. The Commission also 

contemplates the benefits and costs of 

establishing an unlicensed regime, 

either in lieu of a licensed regime or as 

a complement to a licensed regime, and/ 

or non-exclusive licensing approach.20

16. Although the Commission does 

not know precisely what types of 

services may be developed in the 2155–

2175 MHz band, the Commission 

anticipates that the services that will be 

deployed in the band may have capital 

requirements comparable to those in the 

broadband PCS service and AWS–1 in 

the 1710–1755 MHz and 2110–2155 

MHz bands because of their adjacency, 

or close proximity, to the AWS–3 

spectrum band and the record in related 

proceedings suggest similar services are 

being contemplated for all these bands. 

In particular, the Commission 

anticipates that licensees in the 2155–

2175 MHz band will be presented with 

issues and capital and other cost 

requirements similar to those presented 

to broadband PCS licensees and 

licensees in the 1710–1755 MHz and 

2110–2155 MHz bands, including issues 

and costs involved in relocating 

incumbents, and developing markets, 

technologies, and services. Because of 

those anticipated similarities and other 

technical and spectral benefits, the 

Commission is considering the 

possibility of uplink/downlink use, or 

structured uplink/downlink and or 

downlink use, involving asymmetrically 

pairing AWS–3 spectrum with adjacent 

AWS or PCS spectrum bands. 

17. In light of these similarities, the 

NPRM concurrently contemplates the 

adoption of the same small business size 

standards for the 2155–2175 MHz band 


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Federal Register / Vol. 72, No. 219 / Wednesday, November 14, 2007 / Proposed Rules 64017 

21We are coordinating these proposed small 

business size standards with the U.S. Small 

Business Administration. 

22 5 U.S.C. 603(b)(3). 

23 5 U.S.C. 601(6). 

24 5 U.S.C. 601(3) (incorporating by reference the 

definition of ‘‘small business concern’’ in 15 U.S.C. 

632) Pursuant to the RFA, 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.’’ 5 U.S.C. 601(3). 

25Small Business Act, 15 U.S.C. 632 (1996). 

26See IRFA at para. 19, supra. 

27 13 CFR 121.201, NAICS code 517211. 

28 13 CFR 121.201, NAICS code 517212. 

29U.S. Census Bureau, 2002 Economic Census, 

Subject Series: Information, ‘‘Establishment and 

Firm Size (Including Legal Form of Organization,’’

Table 5, NAICS code 517211 (issued Nov. 2005). 

30 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.’’

31U.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). 

32 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.’’

as the Commission adopted for 

broadband PCS and AWS–1 in the 

1710–1755 MHz and 2110–2155 MHz 

bands. Accordingly, if the Commission 

adopts bidding credits, the NPRM 

proposes to define 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. 21

18. The Commission also proposes, in 

the event that it establishes nonnationwide service areas, to provide 

small businesses with a bidding credit 

of 15 percent and very small businesses 

with a bidding credit of 25 percent, as 

set forth in the standardized schedule in 

part 1 of the Commission’s rules. 

Accordingly, we frame the issue of the 

use of these standards and associated 

bidding credits for applicants to be 

licensed in the 2155–2175 MHz band, 

with particular focus on the appropriate 

definitions of small and very small 

businesses as they may relate to the size 

of the geographic area to be covered and 

the spectrum allocated to each license. 

In discussing these issues, commenters 

are requested to address the expected 

capital requirements for services in 

these bands and other characteristics of 

the service. Commenters are also invited 

to use comparisons with other services 

for which the Commission has already 

established auction procedures as a 

basis for their comments regarding the 

appropriate small business size 

standards. 

19. The FCC seeks comment on all the 

rules contemplated above and on 

optional ways of implementing such 

contemplated rules, and on any other 

possible rules which commenters wish 

to suggest and discuss relative to the 

Regulatory Flexibility Act. 

B. Legal Basis 

20. The proposed action is authorized 

pursuant to §§ 1, 2, 4(i), 7, 10, 201, 214, 

301, 302, 303, 307, 308, 309, 310, 319, 

324, 332 and 333 of the 

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

§§ 151, 152, 154(i), 157, 160, 201, 214, 

301, 302, 307, 308, 309, 310, 319, 324, 

332, 333. 

C. Description and Estimate of the 

Number of Small Entities To Which the 

Proposed Rules Will Apply 

21. 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. 22 The 

RFA generally defines the term ‘‘small 

entity’’ as having the same meaning as 

the terms ‘‘small business,’’ ‘‘small 

organization,’’ and ‘‘small government 

jurisdiction.’’ 23 In addition, the term 

‘‘small business’’ has the same meaning 

as the term ‘‘small business concern’’

under the Small Business Act. 24 A 

small business 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 SBA. 25

22. The Commission has not yet 

determined how many licenses will be 

awarded in the 2155–2175 MHz bands. 

Moreover, the Commission does not yet 

know how many applicants or licensees 

in these bands will be small entities. 

Thus, the Commission assumes, for 

purposes of this IRFA, that all 

prospective licensees are small entities 

as that term is defined by the SBA or by 

our proposed small business definitions 

for these bands. Though the 

Commission does not know for certain 

which entities are likely to apply for 

these frequencies, we note that the 

2155–2175 MHz bands are comparable 

to cellular service and personal 

communications service. 26

Accordingly, we believe the following 

regulated entities will be directly 

affected by our contemplated rules. 

23. Wireless Service Providers. The 

SBA has developed a small business 

size standard for wireless firms within 

the two broad economics census 

categories of ‘‘Paging’’ 27 and ‘‘Cellular 

and Other Wireless 

Telecommunications.’’ 28 Under both 

categories, the SBA deems a wireless 

business to be small if it has 1,500 or 

fewer employees. 

Paging. For the census category of 

Paging, Census Bureau data for 2002 

show that there were 807 firms in this 

category that operated for the entire 

year.29 Of this total, 804 firms had 

employment of 999 or fewer employees, 

and three firms had employment of 

1,000 employees or more.30 Thus, under 

this category and associated small 

business size standard, the majority of 

firms can be considered small. 

Cellular and Other Wireless 

Telecommunications. 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.31 Of this total, 1,378 

firms had employment of 999 or fewer 

employees, and 19 firms had 

employment of 1,000 employees or 

more.32 Thus, under this second 

category and size standard, the majority 

of firms can, again, be considered small. 

D. Description of Projected Reporting, 

Recordkeeping, and Other Compliance 

Requirements 

24. New recordkeeping or reporting 

requirements are contemplated in the 

NPRM. However, until the FCC resolves 

how to assign license(s) for the band, 

e.g., unlicensed vs. licensed approach, 

these requirements are difficult to 

describe with great specificity because 

the Commission does not know 

precisely what types of services may be 

developed in the 2155–2175 MHz band. 

25. Nonetheless, the following 

recordkeeping or reporting requirements 

seem applicable under a licensed 

approach. Entities interested in 

acquiring an initial license to use the 

spectrum in the 2155–2175 MHz band 

will be required to file license 

applications using the Commission’s 

automated Universal Licensing System 

(ULS). ULS is an online electronic filing 

system that also serves as a powerful 

information tool that enables potential 

licensees to research applications, 

licenses, and antenna structures. It also 

keeps the public informed with weekly 

public notices, FCC rulemakings, 

processing utilities, and a 

telecommunications glossary. ULS also 

features a Geographic Information 

System (GIS), a digital mapping 

technology that identifies spectrum use 

in relation to geographic areas. As in 

other services, licensees in these bands 


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64018 Federal Register / Vol. 72, No. 219 / Wednesday, November 14, 2007 / Proposed Rules 

33See U.S.C. 603(c)(1)–(4). 

34See IRFA para. 19, supra. 

35See, e.g., NPRM, para. 1, supra. 

36See, e.g., NPRM, para. 1 (competitive bidding 

provisions for designated entities), supra. 

would be allowed to provide all 

allowable services anywhere within 

their licensed area. The Commission’s 

current mobile service license 

application requires an applicant for 

mobile services to identify the 

regulatory status of the service(s) they 

intend to provide, since service 

offerings may bear on eligibility and 

other statutory and regulatory 

requirements. 

E. Steps Taken To Minimize Significant 

Economic Impact on Small Entities, and 

Significant Alternatives Considered 

26. The RFA requires an agency to 

describe any significant alternatives that 

it has considered in reaching its adopted 

approach, which may include the 

following four alternatives (among 

others): (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.33

27. Specifically to assist small 

businesses, the NPRM proposes to 

establish small business size standards 

and associated small business bidding 

credits for the 2155–2175 MHz band in 

the event that licenses are assigned by 

competitive bidding and licensing is 

based on non-nationwide geographic 

areas.34 The NPRM proposes a bidding 

credit of 15 percent for small businesses 

and a bidding credit of 25 percent for 

very small businesses. The NPRM seeks 

comment on whether small business 

bidding credits would be appropriate if 

a nationwide licensing scheme is 

adopted for the 2155–2175 MHz band. 

The NPRM notes that the 

implementation costs associated with a 

nationwide license in these bands is 

presumed to be very high, and it is not 

clear whether small businesses could 

attract the capital necessary to 

implement and provide nationwide 

service. Accordingly, we ask 

commenters to address the expected 

capital requirements for services in 

these bands and other characteristics of 

the service. The Commission invites 

commenters to use comparisons with 

other services for which the 

Commission has already established 

auction procedures as a basis for their 

comments regarding the appropriate 

small business size standards and 

associated small business bidding 

credits. The Commission requests 

comment on any other alternatives to 

minimize significant economic impact 

on small entities. 

28. The NPRM solicits comment on 

various alternatives regarding the 

service rules for the 2155–2175 MHz 

band.35 The NPRM seeks to adopt rules 

that will reduce regulatory burdens, 

promote innovative services and 

encourage flexible use of this spectrum. 

The NPRM also seeks to open up 

economic opportunities to a variety of 

spectrum users, which could include 

small businesses. The NPRM considers 

various proposals and alternatives 

partly because the Commission seeks to 

minimize, to the extent possible, the 

economic impact on small businesses.36

The Commission requests comment on 

any other alternatives to minimize 

significant economic impact on small 

entities. 

29. The NPRM invites comment on 

various alternative licensing and service 

rules and on a number of issues relating 

to how the Commission should craft 

service rules for the AWS–3 spectrum 

that could have an impact on small 

entities. For example, the Commission 

seeks comment on the size of spectrum 

blocks for these frequencies and how 

the size of spectrum blocks would 

impact small entities. The NPRM 

proposes a geographic area approach to 

service areas, as opposed to a stationdefined licensing approach, and seeks 

comment on the appropriate size of 

service areas. Specifically, the NPRM 

asks for comment on whether smaller 

geographic areas would better serve the 

needs of small entities. The NPRM 

explains that the Commission’s 

approach to determining optimum 

geographic area license size(s) attempts 

to accommodate the likely range of 

applicant desires by balancing 

efficiency with the policy goal of 

disseminating licenses among a wide 

variety of applicants. The NPRM notes 

that the Commission wishes to foster 

service to rural areas and tribal lands, 

and to promote investment in and rapid 

deployment of new technologies and 

services. The NPRM also notes that 

small license areas may favor smaller 

entities and regional business plans and 

no interest in providing large-area 

service. In summary, the NPRM seeks 

comment on the advantages and 

disadvantages to small entities of a large 

geographic licensing scheme over a 

small one in terms of impact on rural 

and small entities. The Commission 

requests comment on any other 

alternatives to minimize significant 

economic impact on small entities. 

30. As noted earlier, the NPRM seeks 

comment on permitting geographic 

partitioning and spectrum 

disaggregation. The NPRM notes that 

geographic partitioning and spectrum 

disaggregation is a tool utilized by the 

Commission to promote efficient 

spectrum use and economic opportunity 

for a wide variety of applicants, 

including small business, rural 

telephone, minority-owned, and 

women-owned applicants. The NPRM 

seeks comment on the benefits and costs 

of partitioning and disaggregation, and 

whether it promotes the public interest. 

Finally, the NPRM, seeks comment on 

whether any band-specific limits on 

spectrum aggregation are necessary or 

appropriate in this case, and how this 

would impact the marketplace, 

including small entities. The 

Commission requests comments on any 

other alternatives to minimize 

significant economic impact on small 

entities. 

F. Federal Rules That May Duplicate, 

Overlap, or Conflict With the Proposed 

Rules 

31. None. 

Ordering Clauses 

32. Pursuant to sections 1, 2, 4(i), 7, 

10, 201, 214, 301, 302, 303, 307, 308, 

309, 310, 319, 324, 332 and 333 of the 

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

151, 152, 154(i), 157, 160, 201, 214, 301, 

302, 303, 307, 308, 309, 310, 319, 324, 

332, 333, that this Notice of Proposed 

Rulemaking is hereby adopted. 

33. Notice is given of the proposed 

regulatory changes described in this 

Notice of Proposed Rulemaking, and 

that comment is sought on these 

proposals. 

34. The Commission’s Consumer and 

Governmental Affairs Bureau, Reference 

Information Center, shall send a copy of 

this Notice of Proposed Rulemaking, 

including the Initial Regulatory 

Flexibility Analysis, to the Chief 

Counsel for Advocacy of the Small 

Business Administration. 

Federal Communications Commission. 

Marlene H. Dortch, 

Secretary. 

[FR Doc. 07–5632 Filed 11–13–07; 8:45 am] 

BILLING CODE 6712–01–M 


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