Maritime Communications

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 80

[PR Docket No. 92-257; FCC 97-217]

Maritime Communications

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Commission has adopted a Second Further Notice of Proposed

Rule Making in PR Docket No. 92-257 which seeks to simplify the

licensing process and introduce additional flexibility for public coast

stations. Specifically, the Commission has proposed rules to designate

geographic licensing regions for very high frequency (VHF) public coast

stations, and assign all currently unassigned VHF public correspondence

channels on a geographic basis by competitive bidding. The Commission

has proposed rules to eliminate the required channel loading showing

for high seas public coast stations, and implement competitive bidding

procedures for mutually exclusive initial applications on a case-by-

case basis; and to eliminate

[[Page 37534]]

the current emission restrictions and channel plan, increase the

permitted power levels for point-to-point communications, and

streamline licensing procedures for Automated Maritime

Telecommunications System (AMTS) coast stations. The Commission also

seeks comment on allowing private coast stations to share public coast

station frequencies in the medium frequency (MF) and high frequency

(HF) bands.

DATES: Interested parties may file comments on or before August 25,

1997, and reply comments on or before September 9, 1997.

ADDRESSES: Federal Communications Commission, 1919 M St., N.W.,

Washington, D.C. 20554.

FOR FURTHER INFORMATION CONTACT: Scot Stone, Wireless

Telecommunications Bureau, Public Safety & Private Wireless Division,

(202) 418-0638 or via E-mail to ``[email protected]''.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second

Further Notice of Proposed Rule Making in the Second Report and Order

and Second Further Notice of Proposed Rule Making, PR Docket No. 92-

257, FCC 97-217, adopted June 17, 1997, and released June 26, 1997,

with Commissioner Ness issuing a statement. The full text of this

Second Report and Order and Second Further Notice of Proposed Rule

Making is available for inspection and copying during normal business

hours in the FCC Reference Center (Room 239), 1919 M Street, N.W.,

Washington, D.C. The complete text may be purchased from the

Commission's copy contractor, International Transcription Services,

2100 M Street, N.W., Washington, D.C. 20037, telephone (202) 857-3800.

Summary of the Second Further Notice of Proposed Rule Making in the

Second Report and Order and Second Further Notice of Proposed Rule

Making

1. The Commission initiated the instant proceeding to update the

Maritime Service rules to promote the use of new, spectrally efficient

radio communications techniques. The Commission concluded in the Second

Further Notice of Proposed Rule Making that it was in the public

interest to simplify the license process for VHF public coast stations

and to reconsider its treatment of high seas and AMTS public coast

stations.

2. First, the Commission proposes to designate ten licensing

regions, based on Coast Guard Districts, and authorize a single

licensee for all currently unassigned VHF public correspondence

channels on a geographic basis, in lieu of the site-based approach

presently used. Geographic area licensing provides significant

advantages over site-based licensing for entities providing subscriber-

based services because of the greater operational flexibility it gives

licensees and the greater ease of administration for the Commission.

Coast Guard Districts provide a sufficient amount of contiguous

coastline to foster local as well as regional coast station systems,

and they reflect regional trading and vessel movement patterns.

3. The Commission proposes to permit the continued operation of

incumbent VHF public coast station licensees and private land mobile

radio (PLMR) licensees sharing marine spectrum in inland regions

indefinitely, and to require incumbents and geographic licensees to

afford interference protection to one another. Under the proposal,

incumbent licensees will be allowed to renew, transfer, assign, and

modify their license in any manner so long as such modifications do not

extend the incumbent's service area; proposed modifications that would

extend an incumbent's service area or request additional frequencies

would be contingent upon an agreement with each affected licensee. If

an incumbent fails to construct, discontinues operations, or otherwise

has its license terminated, its authorization would automatically

revert to the regional licensee.

4. The Commission proposes to authorize a single regional licensee

to operate on all unassigned public correspondence frequencies within

its District for a ten-year license term. The Commission proposes to

permit each regional licensee to place stations anywhere within its

region to serve vessels or units on land, so long as marine-originating

traffic is given priority and incumbent operations are protected. Base

stations and land units would be blanket licensed under the regional

license, except that individual licensing would be required for base

stations that require submission of an Environmental Assessment under

47 CFR 1.1307 or international coordination, or would affect the radio

frequency quiet zones described in 47 CFR 80.21.

5. The Commission seeks comment on whether the current construction

requirement for VHF public coast stations (i.e., that the station be

placed in operation within eight months of the license grant) should be

retained, or replaced with a requirement that the station provide

substantial service within ten years (or some lesser level of service

within a shorter time). The Commission proposes to permit partitioning

and disaggregation of the geographic licenses, with partitionees and

disaggregatees to hold their licenses for the remainder of the original

licensee's term and to have a renewal expectancy.

6. Second, the Commission proposes to eliminate the required

showing of channel loading for high seas public coast stations. Like

the now-eliminated VHF band loading criteria, these requirements were

intended to prevent channel warehousing and ensure efficient use of the

maritime spectrum, but continuing to impose loading requirements on

high seas public coast stations could unfairly impair the ability of

providers to compete. Efficient use of high seas public coast station

spectrum is more appropriately monitored through construction

requirements. The Commission proposes extending the construction

requirement from eight months to twelve months.

7. Third, the Commission proposes to introduce additional

flexibility for AMTS coast stations. The Commission proposes extending

the construction requirement from eight months to two years for new

systems and from eight months to one year for subsequently licensed

stations that extend the geographic area served by the system; and

eliminating the current emission restrictions and channel plan. The

Commission seeks comments concerning ways to streamline licensing and

regulatory procedures while continuing to protect television reception

from interference, and concerning increasing the permitted power levels

for AMTS point-to-point communications.

8. Fourth, the Commission proposes to use competitive bidding

procedures to resolve mutually exclusive initial applications for VHF

geographic licenses and for high seas and AMTS public coast station

licenses, in light of its previous determination that public coast

stations provide a commercial mobile radio service and, thus, public

coast station licenses are auctionable, pursuant to 47 U.S.C. 309(j).

The Commission seeks comments regarding the establishment of a ``small

business'' definition for the public coast service, and on what small

business provisions, i.e., installment payment plans and bidding

credits, should be offered to public coast small business applicants.

9. Finally, the Commission proposes allowing private coast stations

to share public coast station frequencies in the MF/HF bands, and seeks

comments regarding how the channels would be shared and how to resolve

mutually

[[Page 37535]]

exclusive initial applications for such frequencies.

10. In order to permit the orderly and effective resolution of the

issues in this proceeding, the Second Further Notice of Proposed Rule

Making suspends the acceptance of public coast station applications to

use VHF spectrum, and PLMR applications proposing to share that

spectrum, for new licenses, amendments to such new license

applications, applications to modify existing licenses, and amendments

thereto; except applications involving renewals, transfers,

assignments, and modifications that propose neither to expand a

station's service area nor to obtain additional public coast VHF band

spectrum. This suspension applies to applications received on or after

June 17, 1997, and is effective until March 17, 1998, provided that the

Commission has not taken any action in this proceeding before that

time.

11. Public coast station applications to use VHF spectrum that were

filed prior to the deadline stated above and which are pending will be

processed provided that they are not mutually exclusive with other

applications as of the deadline stated above, and the relevant period

for filing competing applications has expired as of the deadline stated

above. Previously filed public coast station applications to use public

coast VHF spectrum not meeting these criteria will be held in abeyance

until the conclusion of this proceeding. Previously filed PLMR

applications to use such spectrum will be processed.

Regulatory Flexibility Act

Initial Regulatory Flexibility Analysis

12. As required by Section 603 of the Regulatory Flexibility Act, 5

U.S.C. 603, the Commission has prepared an Initial Regulatory

Flexibility Analysis (IRFA) of the expected impact on small entities of

the policies and rules proposed in the Second Further Notice of

Proposed Rule Making. Written public comments are requested on the

IRFA. Comments must be identified as responses to the IRFA and must be

filed by the deadlines for comments on this Second Further Notice of

Proposed Rule Making provided in the item.

13. Need for and Objectives of the Proposed Rule. The purpose of

this item is to determine whether it is in the public interest,

convenience, and necessity to amend our rules to simplify our licensing

process for VHF public coast stations, to reconsider our treatment of

high seas public coast stations, and to introduce additional

flexibility for AMTS public coast stations. These proposals include:

(1) Converting licensing of VHF public coast station spectrum for which

the principal use will involve, or is reasonably likely to involve,

``subscriber-based'' services, from site-by-site licensing to

geographic area licensing, (2) simplifying and streamlining the VHF

public coast spectrum licensing procedures and rules, (3) increasing

licensee flexibility to provide communication services that are

responsive to dynamic market demands, and (4) employing competitive

bidding procedures (auctions) to resolve mutually exclusive

applications for public coast spectrum for which the principal use will

involve, or is reasonably likely to involve, ``subscriber-based''

services. In addition, we temporarily suspend the acceptance and

processing of certain public coast spectrum applications, with the

exception of applications in a few noted categories. These proposed

rules and actions should increase the number and types of

communications services available to the maritime community.

Additionally, these proposals should improve safety of life and

property at sea.

14. Legal Basis. Authority for issuance of this item is contained

in Sections 4(i), 4(j), 7(a), 302, 303(b), 303(f), 303(g), 303(r),

307(e), 332(a), and 332(c) of the Communications Act of 1934, as

amended, 47 U.S.C. 154(i), 154(j), 157(a), 303(b), 303(f), 303(g),

303(r), 307(e), 332(a), and 332(c).

15. Description and Estimate of the Number of Small Entities to

Which Rule Will Apply. The proposed rules would affect licensees using

public coast spectrum. The Commission has not developed a definition of

the term ``small entity'' specifically applicable to public coast

station licensees. Therefore, the applicable definition of small entity

is the definition under the Small Business Administration rules

applicable to radiotelephone service providers. This definition

provides that a small entity is any entity employing less than 1,500

persons. See 13 CFR 121.201, Standard Industrial Classification (SIC)

Code 4812. Since the Regulatory Flexibility Act amendments were not in

effect until the record in this proceeding was closed, the Comission

was unable to request information regarding the number of small

entities that may choose to provide public coast services and is unable

at this time to make a meaningful estimate of the number of potential

public coast service providers which are small businesses.

16. The size data provided by the Small Business Administration

does not enable us to make a meaningful estimate of the number of

public coast station licensees which are small businesses. Therefore,

we used the 1992 Census of Transportation, Communications, and

Utilities, conducted by the Bureau of Census, which is the most recent

information available. This document shows that only 12 radiotelephone

firms out of a total of 1,178 such firms which operated during 1992 had

1,000 or more employees.

17. We seek comment on the number of small entities that use public

coast station spectrum. Further, we seek comment on the number of small

entities that are likely to apply for licenses under the various

proposals described herein. Because any entity that is capable of

providing radiotelephone service is eligible to hold a public coast

license, the proposals herein could prospectively affect any small

business in the United States. In other words, the universe of

prospective or possible public coast spectrum users is all small

businesses.

18. Reporting, Recordkeeping, and Other Compliance Requirements.

Again, we note that we have requested comment regarding the

establishment of a small business definition for public coast spectrum.

If we use competitive bidding to award licenses, as proposed, and also

establish a small business definition for the purpose of competitive

bidding, then all small businesses that choose to participate in these

services will be required to demonstrate that they meet the criteria

set forth to qualify as small businesses, as required under part 1,

subpart Q of the Commission's Rules, 47 CFR part 1, subpart Q. Any

small business applicant wishing to avail itself of small business

provisions will need to make the general financial disclosures

necessary to establish that the small business is in fact small.

19. If this occurs, prior to auction each small business applicant

will be required to submit an FCC Form 175, OMB Clearance Number 3060-

0600. The estimated time for filling out an FCC Form 175 is 45 minutes.

In addition to filing an FCC Form 175, each applicant must submit

information regarding the ownership of the applicant, any joint venture

arrangements or bidding consortia that the applicant has entered into,

and financial information which demonstrates that a small business

wishing to qualify for installment payments and bidding credits is a

small business. Applicants that do not have audited financial

statements available will be permitted to certify to the validity of

their financial showings. While many small businesses have

[[Page 37536]]

chosen to employ attorneys prior to filing an application to

participate in an auction, the rules are proposed so that a small

business working with the information in a bidder information package

can file an application on its own. When an applicant wins a license,

it will be required to submit an FCC Form 494 (common carrier) which

will require technical information regarding the applicant's proposals

for providing service. This application will require information

provided by an engineer who will have knowledge of the system's design.

20. Federal Rules That May Duplicate, Overlap, or Conflict with the

Proposals. None.

21. Significant Alternatives Minimizing the Impact on Small

Entities Consistent with the Stated Objectives. The NPRM solicits

comment on a variety of alternatives set forth herein. Any significant

alternatives presented in the comments will be considered. As noted, we

have requested comment regarding the establishment of a small business

definition for the public coast service. We also seek comment generally

on the existence of small entities in the public coast service and how

many total entities, existing and potential, would be affected by the

proposed rules in the NPRM. Finally, we request that each commenter

identify whether it is a ``small business'' under the SBA definition of

employing fewer than 1,500 employees.

22. IRFA Comments. We request written public comment on the

foregoing IRFA. Comments must have a separate and distinct heading

designating them as responses to the IRFA and must be filed by the

deadlines provided in the item.

Ex Parte Rules

23. This is a non-restricted notice and comment rulemaking

proceeding. Ex parte presentations are permitted except during the

Sunshine Agenda period, provided they are disclosed as provided in the

Commission's rules. See generally 47 CFR 1.1202, 1.1203, 1.1206(a).

Paperwork Reduction Act

24. This Second Further Notice of Proposed Rule Making does not

contain either a proposed or modified information collection.

Comment Filing Procedures

25. To file formally in this proceeding, you must file an original

and four copies of all comments, reply comments, and supporting

comments. If you want each Commissioner to receive a personal copy of

your comments, you must file an original plus nine copies. You should

send comments and reply comments to the Office of the Secretary,

Federal Communications Commission, Washington, D.C. 20554. You also may

file informal comments by electronic mail. You should address informal

comments to ``[email protected]''. You must put the docket number of this

proceeding (``PR Docket No. 92-257'') on the subject line. You must

also include your full name and Postal Service mailing address in the

text of the message. Formal and informal comments and reply comments

will be available for public inspection during regular business hours

in the FCC Reference Center of the Federal Communications Commission,

Room 239, 1919 M Street, N.W., Washington, D.C. 20554.

List of Subjects in 47 CFR Part 80

Communications equipment, Radio, Vessels.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Rule Changes

47 CFR Part 80 is proposed to be amended as follows:

PART 80--STATIONS IN THE MARITIME SERVICES

1. The authority citation for Part 80 continues to read as follows:

Authority: Secs. 4, 303, 48 Stat. 1066, 1082, as amended; 47

U.S.C. 154, 303, unless otherwise noted. Interpret or apply 48 Stat.

1064-1068, 1081-1105, as amended; 47 U.S.C. 151-155, 301-609; 3 UST

3450, 3 UST 4726, 12 UST 2377.

2. Section 80.25(b) is revised to read as follows:

Sec. 80.25 License term.

* * * * *

(b) Licenses other than ship stations in the maritime services will

normally be issued for a term of ten years from the date of original

issuance, major modification, or renewal.

* * * * *

3. Section 80.49 is revised to read as follows:

Sec. 80.49 Construction and regional service requirements.

(a) Public coast stations. Each VHF public coast station licensee

must demonstrate that it is providing substantial service within its

region or service area (subpart P) within ten years of the initial

license grant. For LF, MF, and HF band and AMTS public coast station

licensees, when a new license has been issued or additional operating

frequencies have been authorized, if the station or frequencies

authorized have not been placed in operation within twelve months from

the date of the grant, the authorization becomes invalid and must be

returned to the Commission for cancellation.

(b) Public fixed stations. When a new license has been issued or

additional operating frequencies have been authorized, if the station

or frequencies authorized have not been placed in operation within

twelve months from the date of the grant, the authorization becomes

invalid and must be returned to the Commission for cancellation.

4. Section 80.215(h)(5) is revised to read as follows:

Sec. 80.215 Transmitter power.

* * * * *

(h) * * *

(5) The transmitter power, as measured at the input terminals to

the station antenna, must be 50 watts or less.

* * * * *

5. Section 80.303(b) is revised to read as follows:

Sec. 80.303 Watch on 156.800 MHz (Channel 16).

* * * * *

(b) A coast station is exempt, by rule, from compliance with the

watch requirement when Federal, State, or Local Government stations

maintain a watch on 156.800 MHz over 95% of the coast station's service

area. Each licensee exempted by rule must notify the appropriate Coast

Guard District office at least thirty days prior to discontinuing the

watch, or in the case of new stations, at least thirty days prior to

commencing service.

* * * * *

6. Section 80.357(b)(2)(ii) introductory text is revised to read as

follows:

Sec. 80.357 Morse code working frequencies.

* * * * *

(b) * * *

(2) * * *

(ii) Frequencies above 5 MHz may be assigned primarily to stations

serving the high seas and secondarily to stations serving inland waters

of the United States, including the Great Lakes, under the condition

that interfrence will not be caused to any coast station serving the

high seas.

* * * * *

Sec. 80.361 [Amended]

7. Section 80.361 is amended by redesignating paragraph (a)(1) as

paragraph (a) and removing paragraph (a)(2).

[[Page 37537]]

8. Section 80.371 is amended by removing paragraph (b)(4) and

revising paragraph (c) introductory text to read as follows:

Sec. 80.371 Public correspondence frequencies.

* * * * *

(c) Working frequencies in the marine VHF 156-162 MHz band. The

frequency pairs listed below are available for assignment to a single

licensee in each of the following ten regions: the First, Fifth,

Seventh, Eighth, Ninth, Eleventh, Thirteenth, Fourteenth, and

Seventeenth United States Coast Guard Districts, as they are defined in

33 CFR part 3. Each regional licensee may place stations anywhere

within its region so long as it provides protection to co-channel

incumbent licensees, as defined in subpart P. For purposes of this

section, co-channel incumbent licensees include public coast stations

and Industrial and Land Transportation stations authorized under part

90 of this chapter on a primary basis. Each regional licensee may also

operate on offset frequencies in areas where the regional licensee is

authorized on both frequencies adjacent to the offset frequency.

Regional licensees that share a common border may either distribute the

available frequencies upon mutual agreement or request that the

Commission assign frequencies along the common border. Operation along

international borders is subject to coordination with foreign

administrations.

* * * * *

Sec. 80.374 [Amended]

9. Section 80.374 is amended by removing paragraph (a) and

redesignating paragraphs (b) and (c) as paragraphs (a) and (b).

10. Section 80.481 is added to read as follows:

Sec. 80.481 Alternative technical parameters for AMTS transmitters.

In lieu of the technical parameters set forth in this part, AMTS

transmitters may utilize any modulation or channelization scheme so

long as emissions are attenuated, in accordance with 47 CFR 80.211, at

the band edges of each station's assigned channel group or groups.

[FR Doc. 97-18292 Filed 7-11-97; 8:45 am]

BILLING CODE 6712-01-P