Future Development of Paging Systems; Implementation of Section 309(J) of the Communications ActCompetitive Bidding

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 22 and 90

[WT Docket No. 96-18; PP Docket No. 93-253; FCC 96-260]

Future Development of Paging Systems; Implementation of Section

309(J) of the Communications Act--Competitive Bidding

AGENCY: Federal Communications Commission.

ACTION: Final Rule; Order on Reconsideration of Interim Rules.

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SUMMARY: In this Order on Reconsideration in WT Docket No. 96-18 and PP

Docket No. 93-253, the Commission modifies the First Report and Order

in this docket by expanding the number of licensees that can modify

their paging systems by adding sites, due to the paging industry's

claims that such relief is necessary to allow paging operators to meet

customer needs and improve service to the public while this rulemaking

is pending. The Commission will allow applications for additional sites

by incumbent licensees who had filed paging applications by October 1,

1995, rather than February 8, 1996, thus expanding the potential number

of paging licensees that can expand their systems.

EFFECTIVE DATE: July 2, 1996.

FOR FURTHER INFORMATION CONTACT: Mika Savir or Rhonda Lien, Commercial

Wireless Division at (202) 418-0620.

SUPPLEMENTARY INFORMATION: This Order on Reconsideration in WT Docket

No. 96-18, PP Docket No. 93-253, adopted June 10, 1996 and released

June 11, 1996, is available for inspection and copying during normal

business hours in the FCC Reference Center, Room 230, 1919 M Street

N.W., Washington, DC. The complete text may be purchased from the

Commission's copy contractor, International Transcription Service,

Inc., 2100 M Street, N.W., Suite 140, Washington DC., 20037, (202) 857-

3800.

Synopsis of Order on Reconsideration of First Report and Order:

I. Background

In the Notice of Proposed Rulemaking (NPRM), 61 FR 06199, February

16, 1996, the Commission suspended acceptance of new paging

applications governed by parts 22 and 90 of the Commission's rules in

conjunction with a proposal to convert from site-by-site licensing of

paging channels to licensing on a geographic area basis. In the First

Report and Order (First R&O), 61 FR 21380, May 10, 1996, the Commission

adopted interim measures allowing incumbents on non-nationwide paging

channels to apply for new sites to expand existing systems, subject to

certain limitations, during the pendency of the rulemaking proceeding.

On its own motion, the Commission makes certain modifications to the

interim licensing rules established by the First R&O, as discussed

below.

In the First R&O, the Commission allowed incumbents to expand the

geographic coverage of their systems by adding transmission sites to

their systems within a defined distance of existing, operating sites.

Specifically, the First R&O provided that applications could be filed

for new sites provided that the applicant certifies that the proposed

site is within 65 kilometers (40 miles) of an operating site licensed

to the same applicant on the same channel prior to the NPRM, that is,

February 8, 1996. Thus, under the terms of the First R&O, incumbents

may not use sites licensed after February 8, 1996 as the basis for

filing applications for additional expansion sites under the interim

rules.

II. Order on Reconsideration

At the time the Commission adopted the NPRM, the Wireless

Telecommunications Bureau (Bureau) was engaged in reducing a

significant backlog of pending paging applications, primarily in the

931 MHz band, many of which had been pending for a year or more. Since

the NPRM was adopted, the Bureau has significantly reduced the backlog

by processing all non-mutually exclusive applications filed through

September 30, 1995. In ex parte presentations and in comments filed

with the Commission, incumbent paging operators have argued that the

processing backlog delayed licensing of sites that otherwise would have

been granted prior to February 8, 1996. Accordingly, these commenters

contend that they should not be precluded from using these newly

licensed sites as a basis for expansion.

III. Discussion

The Commission agrees that because of the time it has taken to

process certain paging applications, it should allow incumbents to use

some sites that were not licensed as of February 8, 1996 as a basis for

expansion. Due to the large number of 931 MHz applications filed in the

past few years, the Bureau has developed a computer software program to

identify and process non-mutually exclusive applications. The Bureau

began using the program to process backlogged applications in mid-1995.

However, some applications for 931

[[Page 34376]]

MHz licenses that were filed as early as January 1995 were still

pending on February 8, 1996. The Bureau recently completed its computer

run of 931 MHz applications filed between January 1 and September 30,

1995. The results of the run identified about 2,500 applications that

were not mutually exclusive and are to be granted, if the applications

are otherwise complete, eliminating most of the remaining application

backlog. The Commission believes that the recipients of these license

grants should be allowed to expand their systems based on these sites,

as long as the licensed sites are operational at the time the expansion

applications are filed. Therefore, the Commission will allow incumbents

to expand 65 kilometers (40 miles) from sites for which applications

were filed as of September 30, 1995, whether or not such applications

were granted prior to February 8, 1996. This change to the Commission's

interim measures will benefit applicants most affected by delays prior

to adoption of the NPRM.

IV. Procedural Matters and Ordering Clauses

A. Regulatory Flexibility Act

As required by Section 604 of the Regulatory Flexibility Act, the

Commission has prepared a Final Regulatory Flexibility Analysis of the

expected impact on small entities of the modification of the interim

rules set forth in this Order on Reconsideration.

Statement of the Need for and Objectives of Interim Rules: In this

Order on Reconsideration, the Commission is modifying the interim

measures, specifically, the interim freeze on new paging applications

imposed in the Notice of Proposed Rulemaking, to permit incumbent

paging licensees to apply for additional licenses to add transmission

sites to existing paging systems on the same channel as the existing

systems, provided that the additional transmission site is within 65

kilometers (40 miles) from an operating transmission site in the

applicant's system. This modification of the interim rule will allow

paging companies additional flexibility to expand their systems during

the interim period.

Summary of Significant Issues Raised by Comments to the Initial

Regulatory Flexibility Analysis (IRFA): There were no comments to the

IRFA regarding the interim rules.

All significant alternatives are discussed in the Order on

Reconsideration.

B. Ordering Clauses

It is ordered that, pursuant to the authority of Sections 4(i),

303(r), 309(c), 309(j), and 332 of the Communications Act of 1934, as

amended, 47 U.S.C. 154(i), 303(r), 309(c), 309(j), and 332, and

effective upon publication of this Order on Reconsideration in the

Federal Register, the interim rules set forth in the First Report and

Order in this docket are modified as set forth herein.

List of Subjects

47 CFR Part 22

Communications common carriers.

47 CFR Part 90

Common carriers.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 96-16874 Filed 7-1-96; 8:45 am]

BILLING CODE 6712-01-P