Opinion ID: 496700
Heading Depth: 3
Heading Rank: 2

Heading: The Geographic and Population Coverage Determination--Subissue (a)(1)

Text: 18 Based on the voluminous written record, the ALJ issued his initial decision on December 30, 1983. See Gencom Inc., FCC No. 83D-71, J.A. at 5-34 (hereinafter Phoenix Initial Decision ). Under subissue (a)(1), the ALJ found that Metro Mobile's proposal was superior to both of its competitors' plans in both area and population coverage, and thus awarded Metro Mobile a comparative preference in this category. 8 Specifically, the ALJ found that Metro Mobile planned to cover 17.2% of the Phoenix SMSA, as compared to 17% coverage for CMS, and 11.2% for Gencom. See Phoenix Initial Decision, at p 7, J.A. at 7-8. Moreover, the ALJ explicitly determined that the areas exclusively covered by Metro Mobile's proposed system were areas of anticipated high demand for cellular service. 9 Gencom argued that its failure to provide coverage to certain sparsely populated areas should be considered from the standpoint of whether or not such coverage was economically justified. It produced economic studies which allegedly demonstrated that if unnecessary or uneconomical cells were removed from its competitors' systems, their coverage would closely resemble its own. See Gencom Rebuttal Case, J.A. at 208-11, 212-36. The ALJ did not consider Gencom's economic efficiency evidence in reaching his determination. 19 In its final decision, the Commission affirmed the ALJ's conclusion that Metro Mobile had demonstrated superior area and population coverage. See Gencom, Inc., 56 Rad.Reg.2d (P & F) 1597, 1602 (1984) (hereinafter Phoenix Final Decision ). While it reduced Metro Mobile to a slight preference on this subissue vis-a-vis CMS, the Commission explicitly adopted the ALJ's findings regarding the comparative deficiency of Gencom's coverage in relation to that of both its competitors' systems. Id. at 1603. 20 The Commission also rejected Gencom's argument that the economic efficiency of proposed coverage should play a role in the comparative analysis, stating: 21 We are not persuaded that refraining from providing service to sparsely populated areas, although it may be economically efficient to do so, is always in the public interest, particularly in this case, where it appears from the record that significant future demand is anticipated. We also agree with the STS [Separated Trial Staff] that the introduction of economic efficiency as a basis of comparison would not assist us in making a determination as to whose proposed coverage is superior. The massive filings that would be generated would likely be inconclusive and would add additional delay in bringing cellular service to the public. 22 Phoenix Final Decision, 56 Rad.Reg.2d (P & F) at 1603-04. 23 In its reconsideration order the Commission again revisited the coverage subissue. The Commission noted that in its final decision it had awarded Metro Mobile a slight preference for coverage with respect to CMS, but had not explicitly ranked Gencom's coverage proposal. Since it had upgraded Gencom's comparative status under another subissue, 10 the Commission found it necessary to compare Gencom directly to Metro Mobile under the coverage rubric. Again the Commission found that Gencom's coverage was distinctly inferior to that of Metro Mobile, and awarded the latter a moderate preference under subissue (a)(1). See Phoenix Reconsideration, 60 Rad.Reg.2d (P & F) at 580. 24