Request for Declaratory Ruling on the Use of Digital Modulation by Multipoint Distribution Service and Instructional Television Fixed Service Stations

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Text

Federal Communications Commission FCC 96-304

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of . )

) Request For Declaratory Ruling on the Use ) DA 95-1854

of Digital Modulation by Multipoint )

Distribution Service and Instructional )

Television Fixed Service Stations )

DECLARATORY RULING AND ORDER

Adopted: July 9, 1996 Released: July 10,1996

By the Commission:

Table of Contents

Paragraph

I. INTRODUCTION ......................................... 1

II. BACKGROUND .......................................... 3

III. DISCUSSION ............................................ 9

A. Commission Rules and Cases in Support of Authorization

of Digital Modulation ................................. 9

B. Modulation Methods ................................. 13

C. Interference Considerations ............................. 16

1. Test Procedures ................................ 17

2. Interference Protection Ratios and Out-of-Band

Emissions Limitations ........................... 20

3. Digital Power and Related Considerations .............. 26

4. Frequency Tolerance and Use of Frequency Offset Techniques 31

5. Responsibility and Procedures for Alleviating

Potential and Actual Interference .................... 33

D. Application of Other MDS and ITFS Technical Rules

in a Digital Environment .............................. 38

1. Equipment Approval ............................ 39

2. Emission Designators ............................ 42

3. Transmission Standards .......................... 44

4. Equipment Standards, Modulation Limits and

Aural Power Limitations ......................... 47

5. Transmission of ITFS Call Signs .................... 48

E. Application Procedures ................................ 52

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Federal Communications Commission FCC 96-304

F. ITFS Programming Requirements ........................ 58

IV. ORDERING CLAUSES .................................... 59

I. INTRODUCTION

1

rds, Modulation Limits and

Aural Power Limitations ......................... 47

5. Transmission of ITFS Call Signs .................... 48

E. Application Procedures ................................ 52

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Federal Communications Commission FCC 96-304

F. ITFS Programming Requirements ........................ 58

IV. ORDERING CLAUSES .................................... 59

I. INTRODUCTION

1. The Commission has before it a request for declaratory ruling1 filed by a coalition of

99 parties with interests in the wireless cable industry (collectively, "Petitioners"),2 pursuant to

Section 1.2 of the Commission's Rules, 47 C.F.R. � 1.2.3 Petitioners seek a declaratory ruling

on their proposed "interim approach"4 to the use of digital modulation in MDS and ITFS upon

application by individual MDS or ITFS entities. Petitioners request that the Commission, based

on some uniform rule clarifications and waivers, avoid the need for developmental authorizations

and "routinely grant"5 MDS and ITFS applications proposing the use of digital modulation on a

non-interference basis, subject to further research and testing by the industry and the provisions

of any subsequent MDS and ITFS rulemaking on digital technology. Except as noted herein, for

the reasons discussed below, we grant Petitioners' request.

2. The ruling we now adopt will provide a quick and easy framework for wireless cable

operators and MDS or ITFS licensees to increase their channel capacity and service offerings

through the use of digital compression techniques. It will additionally enable the industry to gain

experience with a broad array of digital technology and to perform further testing in order to fine

tune performance measures for use of this technology hi wireless cable systems. By this action,

wireless cable becomes the first over-the-air terrestrial video programming service that we

authorize to utilize digital transmissions

techniques. It will additionally enable the industry to gain

experience with a broad array of digital technology and to perform further testing in order to fine

tune performance measures for use of this technology hi wireless cable systems. By this action,

wireless cable becomes the first over-the-air terrestrial video programming service that we

authorize to utilize digital transmissions. Thus, we accelerate the development of wireless cable

services and advance Congress' goal of "promotfing] competition ... hi order to secure lower

prices and higher quality services for American telecommunications consumers."6 We also seek

to promote the use of digital technology, along with its attendant benefits, by the educational

community.

1 Petition for Declaratory Ruling (hereinafter "Petition"), July 13, 1995.

* See Appendix A for a list of the parties.

3 "Wireless cable" is a service permitting delivery of video programming to subscribers utilizing spectrum

allocated to the Multipoint Distribution Service and the Multichannel Multipoint Distribution Service (collectively

referred to as "MDS"), as well as leased channels from the Instructional Television Fixed Service ("ITFS"). Wireless

cable resembles cable television, but instead of coaxial or fiber optic cable, wireless cable uses over-the-air

microwave radio channels to deliver programming to subscribers. Our use of the term "wireless cable" does not

imply that it constitutes cable television for statutory or regulatory purposes.

4 Petition at 11.

5 Id. at 13 n.24.

6 Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat 56 (1996).

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Federal Communications Commission FCC 96-304

H. BACKGROUND

3

le uses over-the-air

microwave radio channels to deliver programming to subscribers. Our use of the term "wireless cable" does not

imply that it constitutes cable television for statutory or regulatory purposes.

4 Petition at 11.

5 Id. at 13 n.24.

6 Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat 56 (1996).

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Federal Communications Commission FCC 96-304

H. BACKGROUND

3. The Commission has taken several actions in recent years to enhance the viability of

the wireless cable service and foster its competitiveness with wired cable and other multichannel

video programming distributors ("MVPDs").7 We have explained our reasons for taking such

actions:

[I]n providing communications services, the public interest is better served by

competition. A competitive industry framework promotes lower prices for

services, provides incentives for operators to improve those services and stimulates

economic growth. An essential component of competition is choice. As we

recognized in our recent report to Congress, consumers hi the market for video

programming do not have enough choices. Although competing technologies have

made major strides ... the cable television market remains largely

noncompetitive.8

Amendment of Parts 21 and 74 of the Commission's Rules With Regard to Filing Procedures in

the Multipoint Distribution Service and in the Instructional Television Fixed Service and

Implementation of Section 3090') of the Communications Act Competitive Bidding, Notice of

7 See Amendment of Parts 21, 43, 74, 78, and 94 of the Commission's Rules Governing Use of the

Frequencies in the 2.1 and 2.5 GHz Bands Affecting: Private Operational-Fixed Microwave Service, Multipoint

Distribution Service, Multichannel Multipoint Distribution Service, Instructional Television Fixed Service, & Cable

Television Relay Service, Second Order on Reconsideration, 10 FCC Red 7074 (1995) (hereinafter Second Wireless

Cable Reconsideration Order), ajfd, Third Order on Reconsideration and Order t

2.1 and 2.5 GHz Bands Affecting: Private Operational-Fixed Microwave Service, Multipoint

Distribution Service, Multichannel Multipoint Distribution Service, Instructional Television Fixed Service, & Cable

Television Relay Service, Second Order on Reconsideration, 10 FCC Red 7074 (1995) (hereinafter Second Wireless

Cable Reconsideration Order), ajfd, Third Order on Reconsideration and Order to Clarify in Gen. Docket Nos. 90-

54 and 80-113, MM Docket No. 94-131, and PP Docket No. 93-253, FCC 96-130 (released April 1, 1996)

(hereinafter Third Wireless Cable Reconsideration Order) (expanding the protected service area of MDS stations);

Amendment of Parts 21 and 74 of the Commission's Rules With Regard to Filing Procedures in the Multipoint

Distribution Service and in the Instructional Television Fixed Service and Implementation of Section 309(j) of the

Communications Act - Competitive Bidding, Report and Order, 10 FCC Red 9589 (1995) (hereinafter MDS Auction

Order) (adopting competitive bidding procedures to distribute unused MDS spectrum and streamlined measures to

process new MDS applications); Order on Reconsideration, 10 FCC Red 13821 (1995) (hereinafter MDS Auction

Reconsideration Order) (clarifying and enhancing the protected service area of ITFS channels). See also

Implementation of Section 19 of the Cable Television Consumer Protection and Competition Act of 1992: Annual

Assessment of the Status of Competition in the Market for the Delivery of Video Programming, First Report, 9 FCC

Red 7442, 7486 n.241 (1994) (hereinafter First Competition Report) (summarizing other significant Commission

actions taken in 1994 to promote the wireless cable service).

8 More recently, the Commission similarly concluded that the market for the distribution of video

programming is not yet competitive. See Annual Assessment of the Status of Competition in the Market for the

Delivery of Video Programming, Second Annual Report, 11 FCC Red 2060 (1995) (hereinafter Second Competition

Report)

ission

actions taken in 1994 to promote the wireless cable service).

8 More recently, the Commission similarly concluded that the market for the distribution of video

programming is not yet competitive. See Annual Assessment of the Status of Competition in the Market for the

Delivery of Video Programming, Second Annual Report, 11 FCC Red 2060 (1995) (hereinafter Second Competition

Report).

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Federal Communications Commission FCC 96-304

ProposedRulemaking, 9 FCC Red 7665,7666 (1994) (hereinafter MDSAuction NPRM) (footnote

omitted).

4. Various factors, including insufficient channel capacity, have been blamed for the

relatively low penetration of wireless cable systems, and the difficulties such systems have

experienced in competing with cable television systems.9 In addition, wireless cable operators

have been contending with increased competition from DBS providers,10 who are the first MVPDs

to implement digital technology on a wide scale. 11 Cable operators also plan to introduce digital

technology into their major markets this year or next year. 12

5. While we have recognized that "the difficulty of accumulating sufficient channel

capacity remains a major obstacle to many wireless cable operators," we have expressed hope that

"the combination of administrative improvements in wireless cable licensing and the use of digital

compression should help to alleviate this problem in the future." MDS Auction NPRM, 9 FCC

Red at 7666-67 (footnote omitted); see First Competition Report, 9 FCC Red at 7488. We expect

that the introduction of digital technology will enhance the service of wireless cable operators by

allowing opportunities for increased channel capacity and programming choices available to

consumers, sharper television pictures, a broader coverage area, and the provision of video, voice

and data services that cannot be offered currently.13 We have additionally concluded that

9 Second Competition Report, 1 1 FCC Red at 2096

chnology will enhance the service of wireless cable operators by

allowing opportunities for increased channel capacity and programming choices available to

consumers, sharper television pictures, a broader coverage area, and the provision of video, voice

and data services that cannot be offered currently.13 We have additionally concluded that

9 Second Competition Report, 1 1 FCC Red at 2096. Using NTSC analog transmission, there are a maximum

of 33 microwave channels available for wireless cable systems. This includes 13 MDS channels (Channels 1, 2 or

2A, E1-E4, F1-F4 and H1-H3) and the excess capacity on the 20ITFS channels (Channels A1-A4, B1-B4, C1-C4,

D1-D4 and G1-G4). Thus, wireless cable operators utilising traditional analog technology are unable to offer

potential subscribers as many channels as are typically offered by cable television systems or direct broadcast satellite ("DBS")-

10 Id.

11 Id. at 2147. Digitization is the process by which analog signals are digitized (converted to streams of " 1 "s

and "0"s) using an encoding process that extracts the information necessary for reconstruction of the input signal at

its destination. By transporting only essential information, the amount of bandwidth the signal occupies is

dramatically reduced. The ratio of compression determines the effective digital rate. For example, a highly

compressed ratio permits the operator to offer six program channels over one 6 MHz channel that would

accommodate only one program if the ratio of compression is less..

12 Id. at 2148.

13 Second Competition Report, 11 FCC Red at 2065-66. The Second Competition Report also described how

"[i]n anticipation of emerging competition in markets for the delivery of video services, many MVPDs are apparently

planning [to] enhance their standard services and expand their offerings to include . . . interactive services." Id. at

2144 (footnote omitted)

sion is less..

12 Id. at 2148.

13 Second Competition Report, 11 FCC Red at 2065-66. The Second Competition Report also described how

"[i]n anticipation of emerging competition in markets for the delivery of video services, many MVPDs are apparently

planning [to] enhance their standard services and expand their offerings to include . . . interactive services." Id. at

2144 (footnote omitted). Such efforts require increased bandwidth and two-way network capabilities, and MVPDs

using wireless distribution methods are focusing primarily on digital compression as their strategy to achieve these

technical objectives. Id.

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Federal Communications Commission FCC 96-304

advances in digital technology "have the potential to exert a major influence on the structure of

the market for the delivery of video programming." Second Competition Report, 11 FCC Red

at 2143. By this ruling, we intend to permit the benefits of digital technology to be realized by

ITFS licensees and their educational communities. 14 We note that several ITFS licensees that do

not lease excess channel capacity are interested in quickly implementing digital technology. See

Petition at iii. Thus, the Commission's interests in fostering competition in the video

programming services market and promoting the use of ITFS spectrum for educational

programming will clearly be advanced by authorizing wireless cable operators to employ digital

technologies. In adopting new procedures for the filing of applications for new MDS stations,

we stated:

The filing system and procedures we adopt herein are expected to ... afford

wireless cable operators the flexibility to ... implement digital technologies. . .

. We believe that our rules will facilitate the transition to digital transmissions

If modification of our rules becomefs] necessary, we will act promptly to ensure

that our rules in no way impede the digital future.

MDS Auction Order, 10 FCC Red at 9606

rocedures we adopt herein are expected to ... afford

wireless cable operators the flexibility to ... implement digital technologies. . .

. We believe that our rules will facilitate the transition to digital transmissions

If modification of our rules becomefs] necessary, we will act promptly to ensure

that our rules in no way impede the digital future.

MDS Auction Order, 10 FCC Red at 9606. See also Second Wireless Cable Reconsideration

Order, 10 FCC Red at 7093 (discussing "the imminent transition from analog to digital

transmissions for MDS stations").

6. In light of the public interest in a competitive video programming services market, it

is important to authorize wireless cable operators to use digital transmissions. We agree with

Petitioners that a rulemaking proceeding for developing permanent standards for use of digital

technology would be lengthy, and would be delayed by a dependence upon additional testing that

has not yet been completed, thus putting the wireless cable industry at a further competitive

disadvantage with respect to other video programming services, which either have already

implemented digital technology or will have done so by the completion of such a proceeding.

Moreover, the Petitioners requesting this ruling are comprised of MDS and ITFS licensees,

wireless cable operators, equipment manufacturers, industry engineers, the Wireless Cable

Association International, Inc. and other industry groups, representing a strong and rare consensus

amongst significant industry participants, who often have divergent interests. Accordingly, we

14 See Amendment of Part 74 of the Commission's Pules Governing Use of the Frequencies in the Instructional

Television Fixed Service, Notice of Proposed Rule Making, 8 FCC Red 2828,2831 (1993) (hereinafter ITFS Channel

Loading NPRM) ("We also believe . . . [that] the ITFS service will be deeply affected by the arrival of digital

compression technology.")

divergent interests. Accordingly, we

14 See Amendment of Part 74 of the Commission's Pules Governing Use of the Frequencies in the Instructional

Television Fixed Service, Notice of Proposed Rule Making, 8 FCC Red 2828,2831 (1993) (hereinafter ITFS Channel

Loading NPRM) ("We also believe . . . [that] the ITFS service will be deeply affected by the arrival of digital

compression technology.").

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Federal Communications Commission FCC 96-304

believe that a declaratory ruling on an interim approach to the employment of digital technology

in the MDS and ITFS services is the appropriate measure at this juncture. 15

7. The following eight parties filed timely comments on this request for declaratory

ruling: 16 Bell Atlantic; 17 NYNEX Corporation (NYNEX); Hammett & Edison, Inc. (Hammett),

consulting engineers; ITS Corporation (ITS), an equipment manufacturer and co-signor of the

Petition; Kraskin & Lessee, on behalf of several independent telephone companies;18 the Rural

Wireless Cable Coalition (Rural Coalition);19 SR Telecom Inc. (SR Telecom), an equipment

manufacturer; and Tarrant County Junior College District, Education Service Center Region 10

and Richardson Independent School District (Tarrant County), ITFS licensees in the Dallas-Fort

Worth area. Petitioners filed a timely reply.

15 Cf. Amendment of Parts 21, 43, 74, 78, and 94 of the Commission's Rules Governing Use of the Frequencies

in the 2.1 and 2.5 GHz Bands Affecting: Private Operational-Fixed Microwave Service, Multipoint Distribution

Service, Multichannel Multipoint Distribution Service, Instructional Television Fixed Service, and Cable Television

Relay Service, Report and Order, 5 FCC Red 6410 (1990) (hereinafter Wireless Cable Order). In the Wireless Cable

Order, the Commission encouraged MDS and ITFS licensees to apply for authorization to use Comband analog

compression technology, which would expand wireless cable channel capacity

channel Multipoint Distribution Service, Instructional Television Fixed Service, and Cable Television

Relay Service, Report and Order, 5 FCC Red 6410 (1990) (hereinafter Wireless Cable Order). In the Wireless Cable

Order, the Commission encouraged MDS and ITFS licensees to apply for authorization to use Comband analog

compression technology, which would expand wireless cable channel capacity. The Commission, however, declined

to conduct a rulemaking proceeding: "Because Comband and other such technologies are still hi development, we

will not make specific rule modifications at this time." Id. at 6417. Similarly, Petitioners liken their request to the

initial requests to use digital modulation in the DBS service, where the Mass Media Bureau also avoided a lengthy

rulemaking proceeding and authorized digital transmission on the basis of minor license modification applications.

See United States Satellite Broadcasting Company, Inc., 1 FCC Red 7247, 7249 (Vid. Serv. Div. 1992) (hereinafter

USSB); Hughes Communications Galaxy, Inc., 8 FCC Red 8116, 8117 (Vid. Serv. Div. 1993) (hereinafter Hughes).

16 See Public Notice, Pleading Cycle Established for Comments on Request for Declaratory Ruling on the Use

of Digital Modulation by Multipoint Distribution Service and Instructional Television Fixed Service Stations, 10 FCC

Red 10915 (Mass Media Bur. 1995).

17 The Bell Atlantic telephone companies are Bell Atlantic-Delaware, Inc., Bell Atlantic-Maryland, Inc., Bell

Atlantic-New Jersey, Inc., Bell Atlantic-Pennsylvania, Inc., Bell Atlantic-Virginia, Inc., Bell Atlantic-Washington,

D.C., Inc. and Bell Atlantic-West Virginia, Inc. Bell Atlantic and NYNEX Corporation recently made a substantial

investment in CAI Wireless Systems, Inc., an existing wireless cable operator

lephone companies are Bell Atlantic-Delaware, Inc., Bell Atlantic-Maryland, Inc., Bell

Atlantic-New Jersey, Inc., Bell Atlantic-Pennsylvania, Inc., Bell Atlantic-Virginia, Inc., Bell Atlantic-Washington,

D.C., Inc. and Bell Atlantic-West Virginia, Inc. Bell Atlantic and NYNEX Corporation recently made a substantial

investment in CAI Wireless Systems, Inc., an existing wireless cable operator.

18 Alenco Communications, Inc., Brazoria Telephone Company, Cap Rock Telephone Cooperative, Inc., Coastal

Utilities, Inc., Coleman County Broadcasting, Inc., Farmers Telephone Cooperative, Inc., Horry Telephone

Cooperative, Inc., Reserve Telephone Company, Inc., Tohono O'odham Utility Authority and XIT

Telecommunication and Technology, Inc.

19 The members of the Rural Coalition, Central Texas Wireless TV, Inc., Leaco Rural Telephone Cooperative,

Inc. and Adams Telecom, Inc., provide wireless cable service hi Texas, New Mexico and Illinois.

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Federal Communications Commission FCC 96-304

8. The commenters generally support the Petition and the Commission's efforts to

facilitate the transition of wireless cable to digital technology.20 Most of the commenters believe

that the transitional approach outlined in the requested ruling will increase the competitive

viability of wireless cable in the MVPD marketplace by allowing operators to offer a competitive

number of channels, without causing harmful interference to existing analog systems, and without

the unnecessary regulatory delay of a rulemaking proceeding.21

ffl. DISCUSSION

A. Commission Rules and Cases in Support of Authorization of Digital Modulation

9

uling will increase the competitive

viability of wireless cable in the MVPD marketplace by allowing operators to offer a competitive

number of channels, without causing harmful interference to existing analog systems, and without

the unnecessary regulatory delay of a rulemaking proceeding.21

ffl. DISCUSSION

A. Commission Rules and Cases in Support of Authorization of Digital Modulation

9. Petitioners recognize that the MDS and ITFS rules contained in Parts 21 and 74 are

oriented toward transmission of NTSC analog video programming signals, but they nonetheless

maintain that the rules allow for a variety of modulation schemes, and that the Commission has

interpreted the rules to promote such flexibility where no cochannel or adjacent channel

interference will result. Petition at 3-4. See, e.g., General Electric Co., 60 RR 2d 1665 (Comm.

Car. Bur. 1986) (hereinafter Combandl); General Electric Co., 61 RR 2d 143 (Mass Media Bur.

1986) (hereinafter Comband II). In particular, Petitioners refer to the similar language describing

emissions in Sections 21.905 and 74.936 of the Commission's Rules. Both of these rules provide

that MDS or ITFS stations will "normally" employ amplitude modulation for the transmission of

the visual signal and frequency modulation for the aural signal. 47 C.F.R. �� 21.905(a) and

74.936(a). Petitioners suggest that the use of the term "normally" in both rules reflects a

recognition by the Commission that modulation schemes other than NTSC may be appropriate

for MDS and ITFS. Petition at 12-13 n.23. Petitioners further point out that Section 21.905(b)

specifically contemplates that "[fjor purposes other than standard television transmission, different

types of emissions may be authorized . . . ." See Petition at 3 n.4

rm "normally" in both rules reflects a

recognition by the Commission that modulation schemes other than NTSC may be appropriate

for MDS and ITFS. Petition at 12-13 n.23. Petitioners further point out that Section 21.905(b)

specifically contemplates that "[fjor purposes other than standard television transmission, different

types of emissions may be authorized . . . ." See Petition at 3 n.4. In promulgating the initial

rules governing the MDS service, including Section 21.90S,22 the Commission expressed

confidence that MDS licensees "will imaginatively exploit the technical possibilities of MDS."

Amendment of Parts 1, 2, 21, and 43 of the Commission's Rules and Regulations to Provide for

Licensing and Regulation of Common Carrier Radio Stations in the Multipoint Distribution

Service, 45 FCC 2d 616, 619 (1974) (hereinafter MDS Allocation Order). Moreover, nothing in

20 Petitioners emphasize that not one commenting party has opposed a grant of the requested ruling. Reply

at 2.

21 See, e.g., Comments of Bell Atlantic at 2-4 (For comparative purposes, Bell Atlantic states that a competing

MVPD system, DIRECTV, Inc., offers approximately 175 channels on a digital basis through DBS service.); NYNEX

at 3-6; Hammett at 1-2; Kraskin & Lessee at 1-2; Rural Coalition at 1-2.

22 Section 21.905(a) and (b) has remained essentially unchanged since its inception.

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Federal Communications Commission FCC 96-304

the original implementation of Section T4.93623 controverts Petitioners' interpretation of that

rule.24 Thus, we agree with Petitioners' reading of Sections 21.905 and 74.936 as allowing

sufficient latitude for authorization of digital transmissions over MDS and ITFS stations.

10. Other rules applicable to MDS and ITFS in Parts 21 and 74 also permit authorization

of the use of digital technology. Section 21.907(c) provides in part that "[i]n addition to the

standard television transmission service ..

agree with Petitioners' reading of Sections 21.905 and 74.936 as allowing

sufficient latitude for authorization of digital transmissions over MDS and ITFS stations.

10. Other rules applicable to MDS and ITFS in Parts 21 and 74 also permit authorization

of the use of digital technology. Section 21.907(c) provides in part that "[i]n addition to the

standard television transmission service ... the licensee may offer a television service not

meeting such standards if the tariff or contract clearly describes the type and quality of the

service and distinguishes it from the standard service . . . ." 47 C.F.R. � 21.907(c). As was

explained nearly 10 years ago hi a declaratory ruling authorizing the use of Comband analog

compression technology for MDS transmissions, "Section (c) of 21.907 was specifically added

to enable MDS carriers to use non-standard transmitters and to encourage developments such as

Comband." Comband I, 60 RR 2d at 1669; see also MDS Allocation Order, 45 FCC 2d at 623-

24.^ Furthermore, in amending Section 74.938, the Commission elaborated that "we are

persuaded that ITFS operators should not be restricted to NTSC format. . . when other video

standards may be better suited to their needs.. . . For these reasons, we are amending our rules

to relax the technical standards for ITFS transmissions." Amendment of Part 74 of the

Commission's Rides and Regulations in regard to the Instructional Television Fixed Service, 98

FCC 2d 925, 928 (1984) (hereinafter ITFS Technical Order).

11. Petitioners also cite several cases to support authorization of digital transmission

under the current rules

ese reasons, we are amending our rules

to relax the technical standards for ITFS transmissions." Amendment of Part 74 of the

Commission's Rides and Regulations in regard to the Instructional Television Fixed Service, 98

FCC 2d 925, 928 (1984) (hereinafter ITFS Technical Order).

11. Petitioners also cite several cases to support authorization of digital transmission

under the current rules. In Comband I and Comband II, the Common Carrier Bureau26 and Mass

23 See Amendment of Parts 2 and 4 of the Commission's Rules and Regulations to Establish a New Class of

Educational Television Service for the Transmission of Instructional and Cultural Material to Multiple Receiving

Locations on Channels in the 1990-2110 Mc/s or 2500-2690 Mc/s Frequency Band, 39 FCC 846 (1963) (hereinafter

ITFS Allocation Order). Section 74.936 was originally codified as Section 4.936.

24 The Mass Media Bureau has held that while Section 74.936, among other rules dealing with ITFS technical

standards, is predicated on the assumption that NTSC transmission will be utilized, other transmission formats may

be considered where, as here, actual experimental test results are submitted for evaluation to insure that acceptable

performance standards are achieved. See Comband II, 61 RR 2d at 145-46, where the Bureau concluded that the

use of Comband analog compression technology is consistent with the ITFS technical standards in Part 74 of the

Commission's Rules.

25 While Section 21.907 was revised in 1987 in the context of a rulemaking permitting MDS licensees to

provide service on a non-common carrier basis, the rule was not changed substantively with respect to the provisions

discussed supra and infra.

26 Until June, 1994, when we centralized the processing and regulatory jurisdiction over wireless cable in the

Mass Media Bureau, the Common Carrier Bureau had responsibility for MDS

in 1987 in the context of a rulemaking permitting MDS licensees to

provide service on a non-common carrier basis, the rule was not changed substantively with respect to the provisions

discussed supra and infra.

26 Until June, 1994, when we centralized the processing and regulatory jurisdiction over wireless cable in the

Mass Media Bureau, the Common Carrier Bureau had responsibility for MDS. See Amendment of Parts 0 and 1 of

the Commission's Rules to Reflect a Reorganization of Multipoint and Multichannel Multipoint Distribution Service

Regulation, 9 FCC Red 3661 (1994).

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Federal Communications Commission FCC 96-304

Media Bureau, respectively, authorized for MDS and ITFS licensees use of Comband analog

compression technology, which allows for transmission of two analog video signals on a single

6 MHz channel. The Bureaus concluded that the Comband system is consistent with Parts 21 and

74 of the Commission's Rules and approved the use of Comband, subject to application to the

Commission in individual cases, where the applicant could demonstrate non-interference and

where the applicant specified a type accepted Comband transmitter. The Commission later

confirmed that "[tjhere is nothing in our current rules to restrict use of Comband transmission by

MDS or ITFS licensees, and we do intend, when possible, to accommodate the widest possible

voluntary usage of this or any other technology that can achieve spectrum efficiencies of this

nature." Wireless Cable Order, 5 FCC Red at 6417.27 These cases further confirm our finding

that the regulatory framework in Parts 21 and 74 of the Commission's Rules governing MDS and

ITFS28 can accommodate the use of transmission formats other than NTSC analog, including the

use of digital modulation techniques.

12. SR Telecom supports the Petition provided that any subsequent rule changes facilitate,

rather than impede, the provision over the MDS spectrum of digital wireless loop service, a two-

way communications service

4 of the Commission's Rules governing MDS and

ITFS28 can accommodate the use of transmission formats other than NTSC analog, including the

use of digital modulation techniques.

12. SR Telecom supports the Petition provided that any subsequent rule changes facilitate,

rather than impede, the provision over the MDS spectrum of digital wireless loop service, a two-

way communications service. SR Telecom Comments at 4-5. In response to SR Telecom's

comments, Petitioners explain that the testing underlying the Petition did not evaluate any two-

way transmissions, and involved the use of modulation methods that differ significantly from the

method proposed by SR Telecom. "Thus, the record is inadequate to permit a reasoned

discussion of the merits of SR's wireless local loop system," Reply at 2 n.2. Petitioners suggest

that the Commission invite SR Telecom to submit a detailed petition which should include test

data and proposed interference standards. Id The Commission recently reiterated that "[w]e will

allow alternative uses other than wireless cable video transmission if the applicant can satisfy

MDS technical rules or adequately support waivers of those rules." MDS Auction

Reconsideration Order, 10 FCC Red at 13825. However, as Petitioners indicate, no data was

submitted here for consideration of the merits of SR Telecom's proposal. Therefore, we find

clarification of the use of digital wireless loop technology on MDS frequencies beyond the scope

of this ruling.29

27 Similarly, in USSB, Hughes' DBS application to employ digital modulation was granted on the condition

that the use of digital modulation would require no more interference protection than the system used for planning

purposes in applicable international agreements. 7 FCC Red at 7249

ation of the use of digital wireless loop technology on MDS frequencies beyond the scope

of this ruling.29

27 Similarly, in USSB, Hughes' DBS application to employ digital modulation was granted on the condition

that the use of digital modulation would require no more interference protection than the system used for planning

purposes in applicable international agreements. 7 FCC Red at 7249. The Video Services Division later determined

that the use of digital transmission as proposed by Hughes would not cause greater interference than that caused by

the system used for planning purposes, and the condition was removed from the authorization. Hughes, 8 FCC Red

at 8117. While DBS is not governed by Parts 21 or 74 of the Commission's Rules, USSB and Hughes are illustrative

of other instances where digital video transmission authority has been granted on the condition of meeting existing

interference criteria.

28 See paras. 9-10, supra.

29 Our action is without prejudice to any subsequent filing by SR Telecom.

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Federal Communications Commission FCC 96-304

B. Modulation Methods

13. Petitioners request interim authorization of two types of digital modulation:

Quadrature Amplitude Modulation ("QAM") and Vestigial Sideband ("VSB"). While the test data

submitted in support of the Petition focuses on the specific densities of 64-QAM and 8-VSB,

Petitioners also seek Commission authorization for the use of both higher and lower modulation

densities of QAM and VSB, to gain experience with "a wider array of... modulation densities

. . . before permanent rules can be adopted." Petition at 9.30 While supporting the Petition,

NYNEX questions Petitioners' commitment to "conform . . . operation to whatever permanent

rules the Commission may adopt in the future to govern digital modulation...." Petition at 1-2;

see NYNEX Comments at 7-8

ties of QAM and VSB, to gain experience with "a wider array of... modulation densities

. . . before permanent rules can be adopted." Petition at 9.30 While supporting the Petition,

NYNEX questions Petitioners' commitment to "conform . . . operation to whatever permanent

rules the Commission may adopt in the future to govern digital modulation...." Petition at 1-2;

see NYNEX Comments at 7-8. NYNEX argues that licensees should avoid interference with

other licensees as may be required by current and future rules, but should not be required to

commit to a subsequent changeout in the digital technology deployed merely because the

Commission adopts a different "standard" modulation technology. NYNEX explains that "[tjhere

are currently two competing methods of digital modulation (QAM and VSB), with perhaps others

in development, which should be authorized by the Commission. Thereafter, each provider will

make an election of technology by market .. . There is no reason for the Commission to chose

[sic] among competing technologies or to specify a 'standard' technology." NYNEX Comments

at 8 (footnote omitted). NYNEX observes that while a licensee is likely to use a single

technology for each market, which would make a subsequent changeout hi technology particularly

costly and challenging, the Commission should allow different digital modulation technologies

to be deployed by different licensees in the same market, or by the same licensee in different

markets. Id. at 8-9. Petitioners did not reply to these comments.

14. Though Petitioners request authorization of the use of QAM and VSB modulation,

they do not ask for adoption of a "standard" technology or the exclusion of other modulation

methods. In fact, Petitioners specify that they do not "mean to suggest that other modulation

methods . . . cannot be employed under appropriate circumstances." Petition at 15 n.27

ers did not reply to these comments.

14. Though Petitioners request authorization of the use of QAM and VSB modulation,

they do not ask for adoption of a "standard" technology or the exclusion of other modulation

methods. In fact, Petitioners specify that they do not "mean to suggest that other modulation

methods . . . cannot be employed under appropriate circumstances." Petition at 15 n.27.

Petitioners add that if the proponent of another digital modulation method can demonstrate that

its proposal will not cause harmful interference, there is no reason not to issue a declaratory

ruling similar to that requested by Petitioners. Id.31 We are not now proposing to adopt one or

30 Petitioners also report that other test results for 32-QAM modulation, obtained at the Advanced Television

Testing Center in connection with our Digital Television proceeding, "are very consistent with" the test results

produced in support of the Petition. Id. at 24 nJ9.

31 We will consider future requests for declaratory ruling where the requesters can demonstrate that their

proposals satisfy MDS and FTPS technical rules or adequately support waivers of those rules. In particular,

requesters would need to show that other modulation techniques could be used in a manner that would not interfere

with MDS and ITFS analog and digital operations. See Comband II, 61 RR 2d at 145-46 ("When other formats .

. . are considered ... we believe that it is appropriate to rely upon actual experimental test results to insure mat

acceptable performance standards are achieved.").

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Federal Communications Commission FCC 96-304

more "standard" digital technologies. This ruling is limited to QAM and VSB. We interpret

Sections 21.905, 21.907(c), 74.936, and 74.938 of the Commission's Rules as enabling us to

authorize use of these digital modulation formats over MDS and ITFS stations, provided that such

use will not result in harmful interference. See paras. 9-10, supra and para

l Communications Commission FCC 96-304

more "standard" digital technologies. This ruling is limited to QAM and VSB. We interpret

Sections 21.905, 21.907(c), 74.936, and 74.938 of the Commission's Rules as enabling us to

authorize use of these digital modulation formats over MDS and ITFS stations, provided that such

use will not result in harmful interference. See paras. 9-10, supra and para. 52, infra?1 As set

forth below, based on the test results submitted by Petitioners, we agree with Petitioners that use

of the VSB and QAM modulation formats up to the densities of 8-VSB and 64-QAM, together

with the current MDS and ITFS interference protection criteria,33 would not be likely to cause

harmful interference to MDS and ITFS service.

15. Petitioners also argue that using QAM and VSB "will ensure excellent interference

protection no matter what densities of VSB or QAM are employed for the digital signals."

Petition at 24-25; see para. 20, infra. We are persuaded that the wireless cable industry also

should have an opportunity to gain practical experience with higher modulation densities, those

up to 16-VSB and 256-QAM. This is consistent with our interpretation of the rules for emission

types, as discussed above. However, we wish to ensure that use of higher densities will not

present an increased likelihood of causing harmful interference to MDS or ITFS service.

Therefore, MDS and ITFS licensees may utilize such densities provided, in their applications,

they submit supplemental measurement data specific to these higher modulation levels, akin to

the data provided by Petitioners in support of the Petition. See Petition at Appendix B, Rationale

for Interim Implementation of Wireless Cable Digital Transmission (hereinafter Interim

Implementation Report); Report on Wireless Cable Interference Testing, April 27-May 4, 1995

(hereinafter Interference Testing Report). But see para. 19, infra

ific to these higher modulation levels, akin to

the data provided by Petitioners in support of the Petition. See Petition at Appendix B, Rationale

for Interim Implementation of Wireless Cable Digital Transmission (hereinafter Interim

Implementation Report); Report on Wireless Cable Interference Testing, April 27-May 4, 1995

(hereinafter Interference Testing Report). But see para. 19, infra. We will provide additional

flexibility by not prohibiting the simultaneous deployment of different authorized digital

technologies in the same market by different licensees.34 Further, pursuant to Sections 21.905,

21.907(c), and 74.936 of the Commission's Rules, which provide for use of more than one

emission type,35 during this interim period, licensees may alternate between analog and digital

transmission systems, in order to compare their effects and make full use of available transmitting

and receiving facilities.36

32 See also Comband I, 60 RR 2d at 1670; Comband II, 61 RR 2d at 146.

33 See para. 22, infra.

34 As described in para. 52, infra, we will accept modification applications or amendments to use digital

technology pursuant to this ruling on a per station basis. Therefore, we will not require a licensee to use the same

modulation in different markets.

35 See paras. 9-10, supra.

36 See paras. 45-46, infra. See also Tarrant County Comments at 4.

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Federal Communications Commission FCC 96-304

C. Interference Considerations

16. As the cornerstone of their interim proposals for digital wireless cable, Petitioners

emphasize that the Commission must assure that use of digital modulation will not cause harmful

electromagnetic interference to nearby analog or digital stations. See Petition at 16

See also Tarrant County Comments at 4.

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Federal Communications Commission FCC 96-304

C. Interference Considerations

16. As the cornerstone of their interim proposals for digital wireless cable, Petitioners

emphasize that the Commission must assure that use of digital modulation will not cause harmful

electromagnetic interference to nearby analog or digital stations. See Petition at 16. Based on

industry test results, Petitioners submit that use of the existing interference protection ratios for

analog MDS and ITFS stations, together with a small relaxation in the currently permitted levels

of out-of-channel emissions, is a conservative approach that would provide more than adequate

interference protection to such stations. See id. at 21-22 and 27-28.

1. Test Procedures

17. The Petition appends a report of the findings of extensive tests that have been

conducted with 64-QAM and 8-VSB modulation in a closed laboratory setting using actual

wireless cable equipment, as well as ITFS equipment and receiving configurations.37 Two basic

receive installations were employed in the tests, one replicating a typical wireless cable subscriber

installation and the other simulating an ITFS receive site that is not part of a wireless cable

system. With each configuration, several television receivers were used, and for each

combination of equipment and transmission mode, the thresholds of perceptibility of interference

to pictures and sound were measured, as well as the signal ratios producing a CCIR grade 4 level

of television picture impairment. Petitioners explain that CCIR grade 4 was employed for these

tests to provide a conservative safety margin of interference protection.38 Accordingly, Petitioners

conclude that the interference results discussed in the Interim Implementation Report demonstrate

a level of interference protection to existing NTSC analog facilities better than the current analog-

to-analog protection.39 Petition at 20-21

explain that CCIR grade 4 was employed for these

tests to provide a conservative safety margin of interference protection.38 Accordingly, Petitioners

conclude that the interference results discussed in the Interim Implementation Report demonstrate

a level of interference protection to existing NTSC analog facilities better than the current analog-

to-analog protection.39 Petition at 20-21. Petitioners emphasize that the tests analyzed only the

susceptibility of analog MDS/ITFS reception to cochannel and adjacent channel interference

37 Petitioners state that 2,337 subjective evaluations and measurements were conducted. These tests are

described generally in the Petition at 18-22. A full description of the test procedures and results is given in the

Interim Implementation Report.

38 The CCIR impairment scale grades are: 5 - Imperceptible; 4 - Perceptible, but not annoying; 3 - Slightly

annoying; 2 - Annoying; and 1 - Very annoying. Petition at 20 n.35.

39 The current 45 dB cochannel desired-to-undesired (D/U) signal strength ratio is based on TASO grade 3

picture quality, which is defined as "passable." Report of the Television Allocations Study Organization to the

Federal Communications Commission (March, 1959). We agree with Petitioners that digital-to-analog protection

standards based on a CCIR grade 4 result offer greater protection than do the current analog standards. We further

agree with Petitioners that CCIR grade 4 quality should be treated as an interim measure, to be reexamined when

more information becomes available on the performance of digital technology. See Petition at 21 n.36.

18850

Federal Communications Commission FCC 96-304

caused by digital signals.40 Because digital signals are "more robust to interference" than are

analog signals, application of the digital-to-analog protection ratios to digital-to-digital reception

will even further limit the likelihood of interference. Petition at 21-22; see Interim

Implementation Report at 3.

18

e Petition at 21 n.36.

18850

Federal Communications Commission FCC 96-304

caused by digital signals.40 Because digital signals are "more robust to interference" than are

analog signals, application of the digital-to-analog protection ratios to digital-to-digital reception

will even further limit the likelihood of interference. Petition at 21-22; see Interim

Implementation Report at 3.

18. Based on the results of these tests, Petitioners conclude that under their requested

interim parameters and rule waivers, QAM and VSB digital modulation can be implemented

without causing interference to analog systems or other digital systems. Petition at 17.

Petitioners maintain that following the technical proposals described below will enable the

Commission to authorize the use of digital modulation techniques without requiring applicants

to present information beyond the standard interference studies now required by 47 C.F.R.

�� 21.902 and 74.903, and without the staff conducting any materially different engineering

analysis than is now used to process MDS and ITFS applications. Petition at 18. Petitioners also

state that the Commission should rapidly grant applications to use digital technology based on

the consent of all neighboring stations, where such consent is obtained. Petition at 16.

19. Petitioners concede that as the modulation densities are increased, the susceptibility

of digital receivers to interference likewise increases. Thus, Petitioners encourage the continued

use of the current conservative 45 dB cochannel and 0 dB adjacent channel interference protection

criteria in order to accommodate use of high modulation densities, until further testing can be

completed to establish optimum digital interference criteria. Petition at 22 n.38; see para. 20,

infra

digital receivers to interference likewise increases. Thus, Petitioners encourage the continued

use of the current conservative 45 dB cochannel and 0 dB adjacent channel interference protection

criteria in order to accommodate use of high modulation densities, until further testing can be

completed to establish optimum digital interference criteria. Petition at 22 n.38; see para. 20,

infra. While we believe that the current interference protection criteria are sufficiently

conservative, we specify that we will not provide additional interference protection for digital

systems with higher modulation densities.

2. Interference Protection Ratios and Out-of-Band Emissions Limitations

20. Petitioners first propose the continued employment of the current 45 dB cochannel

and 0 dB adjacent channel41 D/U signal strength ratios as interim interference protection criteria,

while awaiting the results of further testing from which to develop recommendations for

permanent protection ratios. Petitioners assert that the tests conducted verify that these

interference criteria, when applied to a digital-to-analog interference situation, will yield a picture

40 All interference results submitted with the Petition reflected the relationship between the peak power of

NTSC analog signals and the average power of digital signals. Id. at 19-20 n.32; see paras. 26-27, infra.

41 See Sections 21.902(b) and 74.903(a) of the Commission's Rules. Under Section 74.903(aX2), ITFS stations

constructed before May 26, 1983 are entitled to at least 10 dB adjacent channel desired-to-undesired ("D/U")

protection, unless the receive site under consideration has been subsequently upgraded to utilize more modem

equipment. This ruling will refer to the 0 dB standard that is applicable to MDS stations and to most ITFS receive

sites, but does not modify the additional measure of D/U protection accorded ITFS stations constructed before May

26, 1983

adjacent channel desired-to-undesired ("D/U")

protection, unless the receive site under consideration has been subsequently upgraded to utilize more modem

equipment. This ruling will refer to the 0 dB standard that is applicable to MDS stations and to most ITFS receive

sites, but does not modify the additional measure of D/U protection accorded ITFS stations constructed before May

26, 1983.

18851

Federal Communications Commission FCC 96-304

quality better than the picture currently delivered when these criteria are applied to an analog-to-

analog interference situation. Petition at 24.42 The tests also showed that the degradation in aural

distortion and stereo separation caused by 0 dB adjacent channel operation is "insignificant" in

a digital-to-analog interference situation. Id. Petitioners additionally maintain that adhering to

the current interference criteria as an interim step will allow an easy fall-back to analog

transmission if such a change becomes necessary. Id.

21. Petitioners further request relaxation of the limitations on out-of-band emissions

(spectral mask), found in Sections 21.908(b) and 74.936(b) of the Commission's Rules, as these

limitations relate to digital emissions. Specifically, Petitioners seek out-of-band emission

limitations of:

38 dB attenuation relative to the licensed average power level43 at the channel

edges, constant slope attenuation from that level to 60 dB attenuation at 3 MHz

above the upper and below the lower channel edge, and 60 dB attenuation below

the licensed average power level at all other frequencies.44

Petition at 26. Petitioners contend that application of the current analog spectral mask to digital

use during the interim period both would be unnecessarily restrictive and could be very costly

to wireless cable operators; for example, requiring the use of expensive filtering

ow the lower channel edge, and 60 dB attenuation below

the licensed average power level at all other frequencies.44

Petition at 26. Petitioners contend that application of the current analog spectral mask to digital

use during the interim period both would be unnecessarily restrictive and could be very costly

to wireless cable operators; for example, requiring the use of expensive filtering. Petitioners

report that the tests underlying the Petition demonstrate that even when the spectral mask is

loosened, as proposed, a digital station is less likely to cause adjacent channel interference than

42 The test results show that cochannel and adjacent channel protection ratios of 45 dB and 0 dB, respectively,

yield a picture quality between CCIR grade 4, where interference is "perceptible, but not annoying," and the threshold

of visibility ("TOY"), where the effects of the interfering, undesired signal first become visible in the picture of the

desired signal. For example, in the case of a scrambled, desired analog signal, for 64 QAM modulation of the

undesired signal, the mean cochannel D/U ratios for all receivers tested are 46.9 dB for TOY and 40.5 dB for a

CCIR grade 4 picture quality; for 8-VSB digital modulation, the corresponding mean values are 45.6 dB for TOY

and 39.1 dB for CCIR grade 4. Petition at 19, 23-24; see Interference Testing Report at 4, 7.5-26. The 45 dB

protection ratio now applied between stations with analog transmissions yields a "passable" TASO grade 3 picture

quality. See note 39, supra

43 See para. 27, infra.

44 Sections 21.908(b) and 74.936(b) both currently provide for out-of-band emissions limitations of:

38 dB relative to the peak visual carrier at the channel edges and constant slope attenuation from

this level to 60 dB ... at / MHz below the lower band edge and 0.5 MHz above the upper band

edge. All out-of-band emissions extending beyond these frequencies shall be attenuated at least

60 dB below the peak visual carrier power.

47 C.F.R

tly provide for out-of-band emissions limitations of:

38 dB relative to the peak visual carrier at the channel edges and constant slope attenuation from

this level to 60 dB ... at / MHz below the lower band edge and 0.5 MHz above the upper band

edge. All out-of-band emissions extending beyond these frequencies shall be attenuated at least

60 dB below the peak visual carrier power.

47 C.F.R. �� 21.908(b) and 74.936(b) (emphasis added).

18852

Federal Communications Commission FCC 96-304

an analog station meeting the existing mask. Id. at 27.45 Therefore, Petitioners assert that a

"blanket waiver" of Sections 21.908(b) and 74.936(b) for digital transmitters will benefit the

"public interest in rapid, low-cost introduction of digital technology" in that it "will allow much

of the installed base of analog transmission equipment to be converted rapidly and inexpensively

to digital usage without sacrificing interference protection standards." Id. at 27-28.

22. We have reviewed the test results submitted with the Petition and are satisfied that

retaining the current 45 dB cochannel and 0 dB adjacent channel D/U signal strength protection

ratios will enable us as an interim step to authorize the use of the QAM and VSB digital

modulation formats requested by Petitioners without harmful interference to analog MDS and

ITFS service. See paras. 14-15 and note 39, supra. In view of the results obtained in connection

with the Commission's Digital Television proceeding, we are also confident that harmful

interference will not occur among digital MDS and ITFS stations. See Final Report and

Recommendations of the Advisory Committee on Advanced Television Service (November 28,

1995).

23. Generally, unless there is an interference agreement between the affected parties,

applicants must protect the 56.33 km (35 mile) service areas of MDS "incumbent" stations, those

authorized or proposed on or before September 18,1995

ur among digital MDS and ITFS stations. See Final Report and

Recommendations of the Advisory Committee on Advanced Television Service (November 28,

1995).

23. Generally, unless there is an interference agreement between the affected parties,

applicants must protect the 56.33 km (35 mile) service areas of MDS "incumbent" stations, those

authorized or proposed on or before September 18,1995. Such interference protection must also

be afforded to previously authorized or proposed service areas of ITFS stations. In expanding

the protected service areas of ITFS stations and MDS incumbent stations, we recognized that

there would be situations hi which two expanded service areas would overlap. Accordingly, we

adopted a limited exception to the 56.33 km (35 mile) protected service area definition to govern

modification applications of MDS incumbents, where two protected service areas overlap. See

Second Wireless Cable Reconsideration Order, 10 FCC Red at 7083-84. In such cases, applicants

are allowed to request waiver of the protection criteria in Section 21.902 of the Commission's

Rules. The waiver submission must demonstrate that the facilities proposed hi the modification

application will not increase the size of the geographic area predicted to receive interference, nor

be predicted to cause harmful interference to any new portion of the other station's protected

area.

24. Consistent with use of our existing interference criteria, the limited exception

described in para, 23, supra, will also apply to modification applications of MDS incumbents

seeking use of digital technology. We note that the same physical situation will be encountered

by "ITFS incumbents" whose facilities were either authorized or proposed on or before September

18,1995. The vast majority of these licensees are part of wireless cable systems, having identical

facilities to those of the MDS licensees in the same systems

ification applications of MDS incumbents

seeking use of digital technology. We note that the same physical situation will be encountered

by "ITFS incumbents" whose facilities were either authorized or proposed on or before September

18,1995. The vast majority of these licensees are part of wireless cable systems, having identical

facilities to those of the MDS licensees in the same systems. Therefore, in order to facilitate the

introduction of digital technology on all of the channels hi a wireless cable system, during the

45 A sensitivity analysis was performed on the proposed spectral mask. This analysis demonstrated that the

proposed mask provides more protection than the current analog mask. See Interference Testing Report at 27-34.

18853

Federal Communications Commission FCC 96-304

interim period, ITFS incumbent licensees applying for digital authority may, when applicable,

request waiver of the interference criteria in Section 74.903 of the Commission's Rules based on

the limited exception described above. This will further our goal of "enhancing the compatibility

for the wireless cable operator who uses ITFS and MDS channels." Second Wireless Cable

Reconsideration Order, 10 FCC Red at 7079. This matter will be revisited in a future rulemaking

proceeding on use of digital technology in the MDS and ITFS services.

25. We are also persuaded by Petitioners' arguments for interim waiver of the emissions

limitations of Sections 21.908(b) and 74.936(b). When we considered the MDS and ITFS

spectral mask in 1990, we originally proposed a constant slope attenuation from the emission

level at the channel edges to 60 dB attenuation at 3 MHz above the upper and below the lower

channel edge,46 and Petitioners essentially reiterate that proposal here. While we eventually

adopted the more restrictive current spectral mask,47 we did so, as Petitioners point out,4* based

on tests utilizing NTSC analog transmissions

nally proposed a constant slope attenuation from the emission

level at the channel edges to 60 dB attenuation at 3 MHz above the upper and below the lower

channel edge,46 and Petitioners essentially reiterate that proposal here. While we eventually

adopted the more restrictive current spectral mask,47 we did so, as Petitioners point out,4* based

on tests utilizing NTSC analog transmissions. We find, based on the digital test results submitted

by Petitioners, that we may allow Petitioners' proposed spectral mask as an interim measure

without sacrificing adjacent channel interference protection. Acceptable levels of out-of-band

emissions shall reference the average transmitter output power. See para. 27 and note 54, infra.

We also clarify that the relative power of out-of-band emissions shall be measured with 100 kHz

resolution bandwidth. As we have recently articulated, "[t]o maximize spectrum efficiency . . .

the shape of the emission mask [must] be designed to permit reasonable and practical information

transfer without excessively expensive filtering requirements. At the same time, out-of-band

emission limits must be judiciously selected to provide acceptable adjacent channel protection."

Replacement of Part 90 by Part 88 to Revise the Private Land Mobile Radio Services and Modify

the Policies Governing Them and Examination of Exclusivity and Frequency Assignment Policies

of the Private Land Mobile Radio Services, 10 FCC Red 10076, 10117 (1995).49 Petitioners'

proposed interim spectral mask will facilitate the swift, low-cost introduction of digital technology

to wireless cable, by allowing the use of existing transmission equipment without the significant

44 See Amendment of Parts 21, 43, 74, 78, and 94 of the Commission's Rules, Pertaining to Rules Governing

Use of the Frequencies in the 2.1 and 2.5 GHz Bands Affecting: Private Operational-Fixed Microwave Service,

Multipoint Distribution Service, Multichannel Multipoint Distribution Service, Instructional Television Fixe

owing the use of existing transmission equipment without the significant

44 See Amendment of Parts 21, 43, 74, 78, and 94 of the Commission's Rules, Pertaining to Rules Governing

Use of the Frequencies in the 2.1 and 2.5 GHz Bands Affecting: Private Operational-Fixed Microwave Service,

Multipoint Distribution Service, Multichannel Multipoint Distribution Service, Instructional Television Fixed Service,

and Cable Television Relay Service, Notice of Proposed Rule Making and Notice of Inquiry, 5 FCC Red 971, 977

(1990) (hereinafter Wireless Cable NPRM).

47 See Wireless Cable Order, 5 FCC Red al 6421.

48 See Petition at 27.

49 In the Private Land Mobile Radio Services order, we approved a less restrictive spectral mask where, as

here, it provided acceptable adjacent channel interference protection. Our decision also rested on our finding that

"[e]xisting equipment would require redesign and the necessary modifications would not only be expensive but would

delay the use of 12.5 kHz bandwidth equipment in the marketplace." Id. at 10119.

18854

Federal Communications Commission FCC 96-304

costs and delays associated with equipment upgrades. In this manner, the public interest is

fulfilled, while at the same time, adequate adjacent channel interference protection is provided.

3. Digital Power and Related Considerations

26. A major difference between analog and digital transmission systems is the measure

used to describe the transmitted power. For NTSC analog signals, the chosen measure is the

envelope power at the peak of the synchronizing pulses of the television video signal ("peak

visual power"), which does not change appreciably during the course of normal station operations.

NTSC peak visual power is commonly thought of as a transmitter parameter; however, it also

determines the power radiated from a transmitting antenna, one measure of which is the effective

isotropically radiated power ("EIRP"). Digital signals based on VSB or QAM modulation are

different from NTSC signals

r"), which does not change appreciably during the course of normal station operations.

NTSC peak visual power is commonly thought of as a transmitter parameter; however, it also

determines the power radiated from a transmitting antenna, one measure of which is the effective

isotropically radiated power ("EIRP"). Digital signals based on VSB or QAM modulation are

different from NTSC signals. Except for a pilot carrier frequency in the VSB format,50 the digital

signal waveform resembles random electrical noise, with many closely spaced irregular peaks at

different levels evenly distributed above and below some average value, a value generally not

affected by the modulating video signal. Therefore, digital signals are normally characterized by

the "average" power in a 6 MHz digital channel, and calculations and/or measurements are made

of average transmitter power, average EIRP, and average signal strength. In MDS and ITFS

interference studies, a station's EIRP is entered into the free space propagation formula to predict

levels of desired and undesired signal strengths, which in turn comprise the D/U interference

protection ratios. The interim D/U protection ratios proposed by Petitioners are based on

measurements of the peak NTSC visual power of the "desired" analog signal and the average

power of the "undesired" digital signal, an established practice according to Petitioners:

This results in comparing "apples and oranges.' So long as the measurements are

always made in the same way and the degree of acceptable interference is

established using corresponding values, this is not a problem. Thus acceptable

interference from digital-into-analog or from analog-into-digital is expressed in

decibels based upon the peak of one and the average of the other. This is the

industry norm for describing such relationships.

Interim Implementation-Report at 2

ys made in the same way and the degree of acceptable interference is

established using corresponding values, this is not a problem. Thus acceptable

interference from digital-into-analog or from analog-into-digital is expressed in

decibels based upon the peak of one and the average of the other. This is the

industry norm for describing such relationships.

Interim Implementation-Report at 2. Accordingly, Petitioners ask the Commission to clarify that

all digital power measurements and values in the MDS and ITFS services be defined as average

power levels. Petition at 20 n.32.

27. We agree that average power, as described above, is a suitable measure for digital

transmissions, and is the most suitable for purposes of this interim ruling, in that it was a

measured variable in the testing in support of the Petitioner's interference protection proposals.

50 See paras. 30 and 32, infra.

18855

Federal Communications Commission FCC 96-304

Thus, we determine here that interim digital authorizations for MDS and ITFS stations will

specify average values for EIRP, and that emissions in the spectral mask will reference the

average power51 in a 6 MHz bandwidth measured at the output of the digital transmitter.

Moreover, for purposes of this ruling, all other relevant signal propagation measures and

parameters for digitally transmitted signals will reflect the use of average power; e.g., power flux

density, received power, and electric field strength. As suggested in the Interim Implementation

Report,52 we will authorize digital transmissions with an average power level (EIRP) equal to the

peak visual power (EIRP) of analog transmissions from the same facility. Generally, applicants

may seek an EIRP for their digital facilities up to the EIRP limits now permitted in our rules for

analog transmissions

power, and electric field strength. As suggested in the Interim Implementation

Report,52 we will authorize digital transmissions with an average power level (EIRP) equal to the

peak visual power (EIRP) of analog transmissions from the same facility. Generally, applicants

may seek an EIRP for their digital facilities up to the EIRP limits now permitted in our rules for

analog transmissions. An MDS or ITFS applicant proposing to use an omni-directional

transmitting antenna may request authority to operate digitally with an EIRP (average) of up to

2,000 watts, based on compliance with the interim standards and procedures for interference

protection, spectral mask, and spectral energy dispersion. See para, 30, infra. This policy will

facilitate the use of existing equipment (e.g., portions of an analog transmitter) and the rapid

introduction of digital wireless cable systems into the competitive marketplace.

28. As a practical matter, in order to control the undesired effects of large amplitude

peaks in a digital signal, "it will be necessary to 'back off the power output by as much as 6-7

dB (to a level of 20-25 per cent of the rated analog power output)." Interim Implementation

Report at 14. According to Petitioners, some stations may find it necessary to temporarily

operate with reduced power until they begin to operate with fully digital transmitters; thus,

Petitioners request that the Commission permit licensees to operate at less than authorized power

during the interim period. Section 21.107(c) provides that transmitter power must be maintained

"as near as practicable" to the power specified hi the station authorization, and Section 74.95 l(f)

states that a formal application is required for a change in operating power. 47 C.F.R.

�� 21.107(c) and 74.591(f). Petitioners explain that a licensee may need to operate at reduced

power: (1) to eliminate distortion otherwise caused by irregular power peaks in the digital signal;

tained

"as near as practicable" to the power specified hi the station authorization, and Section 74.95 l(f)

states that a formal application is required for a change in operating power. 47 C.F.R.

�� 21.107(c) and 74.591(f). Petitioners explain that a licensee may need to operate at reduced

power: (1) to eliminate distortion otherwise caused by irregular power peaks in the digital signal;

(2) to achieve the required 45 dB D/U protection ratio with respect to a closely-spaced station

that had been licensed through consent or through the use of frequency offset techniques;53 or (3)

because its existing transmitter equipment is incapable of meeting even the relaxed limitations

51 See para. 25, supra.

52 Interim Implementation Report at 14.

53 Frequency offset is a deviation in frequency from the nominal position of a carrier frequency in a given

channel. This deviation makes the two signals with certain differences in frequencies less susceptible to interference

from each other. Petitioners contend that frequency offset techniques are of no utility in reducing interference caused

by a station utilizing digital modulation, because the digital signal is spread uniformly across the channel bandwidth.

Therefore, Petitioners Tnaintain that absent successful coordination among the affected parties, a station now providing

less than 45 dB D/U cochannel interference protection must reduce power in order to convert to use of digital

technology. Petition at 29 n.53. See paras. 33-34, infra.

18856

Federal Communications Commission FCC 96-304

on out-of-band emissions proposed by Petitioners. Petition at 28-29. Generally permitting

licensees converting to digital technology to operate at reduced power on an interim basis will,

Petitioners assert, avert a flood of individual requests for special temporary authority. This, hi

turn, will add an element of certainty, reduce Commission staff workload, and expedite the

deployment of digital technology hi the wireless cable industry

. Petition at 28-29. Generally permitting

licensees converting to digital technology to operate at reduced power on an interim basis will,

Petitioners assert, avert a flood of individual requests for special temporary authority. This, hi

turn, will add an element of certainty, reduce Commission staff workload, and expedite the

deployment of digital technology hi the wireless cable industry. Petition at 30.

29. We are persuaded by Petitioners' justification of their request for operation at reduced

power by licensees employing digital modulation during this interim period. We note that our

rules- contemplate operation at reduced power where necessary to avoid harmful interference. See,

e.g., 47 C.F.R. � 74.903(a) ("Interference may also be controlled through ... use of the

minimum power required to provide the needed service."). See also Second Wireless Cable

Reconsideration Order, 10 FCC Red at 7084 ("There are a number of engineering techniques

which can be used [by an MDS applicant], singularly or in combination, to avoid or eliminate

the potential for harmful interference. Examples of such techniques include . . . decrease of

transmitter power . . . ."). Interpreting Sections 21.107(c) and 74.951(f) to the extent of

permitting, without application to the Commission, operation at less than authorized power will

expedite introduction of digital technology hi the wireless cable industry, as described by

Petitioners. Although MDS licensees may operate with reduced power without notifying the

Commission, licensees are cautioned that interference protection will be based on the authorized

EIRP.

30. While we agree with the specification of average power for digital transmissions, we

are concerned that the power spectrum of digital signals be properly shaped to produce an

average power that is meaningful for controlling interference; i.e., that the power spectral density

be uniform across the digital channel

tioned that interference protection will be based on the authorized

EIRP.

30. While we agree with the specification of average power for digital transmissions, we

are concerned that the power spectrum of digital signals be properly shaped to produce an

average power that is meaningful for controlling interference; i.e., that the power spectral density

be uniform across the digital channel. To achieve this uniformity, the digital signal input must

be suitably randomized before being modulated, hi order to avoid "symbol patterns" (clustering

of high energy symbols) that cause significant power peaks hi the digital spectral waveform,

which hi turn increases the potential for cochannel interference. Accordingly, we believe it is

necessary to stipulate interim measures for ensuring that adequate energy dispersal will be

provided at all times for digitally modulated signals, including times when no data (input signal)

is applied to the transmitter. The means of energy dispersal shall insure substantially uniform

power spectral density across the occupied bandwidth (within the 3 dB power points) of the

signal, except for the spectral region of any system pilot carrier used, when averaged over both

relatively long and short periods. Such energy dispersal may be accomplished through the use

of data randomization by scrambling the digital signal input with a pseudo random binary

sequence ("PRBS") generated from a polynomial randomizer. Other methods of energy dispersal

are possible. However, no segment of the bandwidth of the transmitter output signal, other than

18857

Federal Communications Commission FCC 96-304

at the pilot frequency, shall be above the energy level expected for uniform dispersal.54 When

transmitting a VSB signal, a small in-phase pilot carrier may be added to the data signal. As

another safeguard against interference, we stipulate that the level of the pilot carrier be at least

11.3 dB below the average signal power

other than

18857

Federal Communications Commission FCC 96-304

at the pilot frequency, shall be above the energy level expected for uniform dispersal.54 When

transmitting a VSB signal, a small in-phase pilot carrier may be added to the data signal. As

another safeguard against interference, we stipulate that the level of the pilot carrier be at least

11.3 dB below the average signal power. We believe that these additional measures are necessary

during the interim period covered by this ruling; particularly, in view of our permitted use of

transmission equipment that has not been type accepted for digital operation.55 In this regard, we

will require licensees of stations that will operate transmitters not type accepted for digital use

to test the in-channel power dispersal, pilot carrier level and level of out-of-band emissions, and

certify compliance with the above provisions. Testing of the power dispersion at the output of

such transmitters shall be made both with and without the presence of a digital input signal to

the transmitter. A statement certifying compliance with the above provisions, accompanying the

licensee's certification or notification to the Commission that construction of the station has been

completed, will be a necessary condition for obtaining digital operating authority. See para. 41,

infra.

4. Use of Frequency Offset Techniques and Frequency Tolerance

31. With respect to frequency tolerance, Petitioners state that 47 C.F.R. ��21.101 and

74.961 can and should continue to apply, but that for some types of digital signals, there is no

carrier frequency to measure. Petition at 33

pleted, will be a necessary condition for obtaining digital operating authority. See para. 41,

infra.

4. Use of Frequency Offset Techniques and Frequency Tolerance

31. With respect to frequency tolerance, Petitioners state that 47 C.F.R. ��21.101 and

74.961 can and should continue to apply, but that for some types of digital signals, there is no

carrier frequency to measure. Petition at 33. Petitioners additionally maintain that frequency

offset techniques are of no utility in reducing interference caused by a station employing digital

modulation.56 Petitioners cite our recent acknowledgement that:

We are especially concerned about the imminent transition from analog to digital

transmissions for MDS stations and the effect of frequency offset transmitters on

that transition. . . . [I]t is possible that our authorization of an involuntary

frequency offset may frustrate the subsequent conversion of [a] particular MDS

station to digital compression technology. This is not a desirable result.

Second Wireless Cable Reconsideration Order, 10 FCC Red at 7093; see Petition at 29 n.53.

Thus, Petitioners request that the Commission "reiterate" that it will not mandate frequency offset

54 The expected power level for any segment of a uniformly dispersed signal is expressed as 10 log,0

(frequency segment in kHz / frequency pass-band in kHz) dB below the power level for the total signal. For

licensees using existing equipment modified for digital transmissions, see para. 40, infra, the average digital

transmitter output power will be considered to be the rated peak visual output power of the analog transmitter. In

the case of a new digital transmitter design, the average digital transmitter output power will be the manufacturer's

rated power.

55 See paras. 39-41, infra.

56 See note 53, supra

existing equipment modified for digital transmissions, see para. 40, infra, the average digital

transmitter output power will be considered to be the rated peak visual output power of the analog transmitter. In

the case of a new digital transmitter design, the average digital transmitter output power will be the manufacturer's

rated power.

55 See paras. 39-41, infra.

56 See note 53, supra.

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Federal Communications Commission FCC 96-304

operations for stations utilizing digital modulation, despite the provisions of Sections 21.905(c)

and 74.96l(c) of the Commission's Rules that MDS or ITFS licensees may be required to use

frequency offset to avoid or minimize interference. Petition at 29 n.53.

32. We concur that frequency tolerance is not relevant to the digital modulation systems

involved herein, with the exception of the pilot carrier frequency in VSB systems. Testing of the

8-VSB modulation in connection with our advanced digital television proceeding has discovered

that the "beating" of the pilot carrier and visual carrier frequency of a lower adjacent NTSC

channel can introduce interference in the adjacent NTSC channel. This effect can be mitigated

by precisely controlling the difference (offset) between the two frequencies. Accordingly, we

believe that there may be some utility in frequency offset operation involving VSB digital

transmissions. However, in this ruling, we will not mandate either a frequency offset or a

tolerance for the 8-VSB pilot carrier. In view of the nature of the collocated adjacent channel

stations that comprise wireless cable systems, this is a matter best left for now to the control of

system operators

lieve that there may be some utility in frequency offset operation involving VSB digital

transmissions. However, in this ruling, we will not mandate either a frequency offset or a

tolerance for the 8-VSB pilot carrier. In view of the nature of the collocated adjacent channel

stations that comprise wireless cable systems, this is a matter best left for now to the control of

system operators. Thus, also keeping in mind our pronounced concerns that involuntary

frequency offset may in fact frustrate the ability of an MDS or ITFS station to convert to digital

transmissions, we grant, on an interim basis, Petitioners' request that we not mandate frequency

offset operations for stations utilizing digital modulation,57 subject to the outcome of any future

rulemaking proceeding. See Second Wireless Cable Reconsideration Order, 10 FCC Red at 7093.

Nonetheless, we encourage the inclusion of pilot carrier offset studies in the additional program

of testing to be conducted by those in the wireless cable industry, looking toward the adoption

of permanent rules for digital systems.

5. Responsibility and Procedures for Alleviating Potential and Actual Interference

33. While Hammett generally supports the Petition, it raises as an issue Petitioners'

treatment of existing wireless cable stations that have engineered their systems, on the basis of

frequency offsets, to allow cochannel D/U signal ratios of less than the 45 dB which is required

for nonoffset operation. Specifically, Hammett is concerned about the statement that "a station

that provides less than 45 dB D/U to a co-channel station will have to reduce power in order to

convert to digital technology, absent successful coordination." Petition at 29 n.53. Hammett

requests that Petitioners clarify which station, the analog station or the station electing to switch

to digital modulation, would be the candidate for a power reduction. See Hammett Comments

at 2

tion

that provides less than 45 dB D/U to a co-channel station will have to reduce power in order to

convert to digital technology, absent successful coordination." Petition at 29 n.53. Hammett

requests that Petitioners clarify which station, the analog station or the station electing to switch

to digital modulation, would be the candidate for a power reduction. See Hammett Comments

at 2. Moreover, in a case where two cochannel analog stations have engineered their systems to

less than 45 dB D/U ratios through frequency offsets and both wish to convert to digital

operations, mutual reductions hi power would not be helpful, because that would leave the D/U

57 We note, however, that by requesting that we "reiterate" that we will not mandate use of frequency offset

by such stations, Petitioners may have misinterpreted our recent statements regarding mandatory frequency offset.

We stated that we will continue to evaluate involuntary MDS frequency offset proposals for analog transmissions

on a case by case basis. See Second Wireless Cable Reconsideration Order, 10 FCC Red at 7093 n.14.

18859

Federal Communications Commission FCC 96-304

ratio unchanged. Hammett again questions which station should be the one to reduce power, and

states that apparently, "the only solution in such cases would be for each licensee to give up half

of its channels, so that the remaining channels can be afforded D/U ratios of 45 dB or better."

Hammett Comments at 2-3. Assuming these two interference concerns can be adequately

addressed, Hammett fully supports the Petition.

34. In their reply, Petitioners indicate that the language referenced by Hammett is not

intended to force a station that is remaining analog to reduce power. Reply at 4-5

s channels, so that the remaining channels can be afforded D/U ratios of 45 dB or better."

Hammett Comments at 2-3. Assuming these two interference concerns can be adequately

addressed, Hammett fully supports the Petition.

34. In their reply, Petitioners indicate that the language referenced by Hammett is not

intended to force a station that is remaining analog to reduce power. Reply at 4-5. Instead, they

affirm that under their proposed interim standards, "it is the station that desires to convert to

digital technology that will have to reduce power to provide a 45 dB D/U [ratio] to the existing

analog facility, absent agreement among the parties." Id. at 5. In response to Hammett's second

situation where two closely-spaced stations both wish to convert to digital operations, Petitioners

state that Hammett's solution is one possible approach, but suggest that "the parties could also

logically agree to convert to digital technology in tandem and retain their existing power levels."

Id. Petitioners also maintain that the Commission should permit licensees to mutually agree to

convert to digital technology, even if the 45 dB D/U standard cannot be met. Id. at 6.5* As

acknowledged by Petitioners, in the absence of an agreement between the parties in such

situations, resolution of the issue would depend upon the final digital-to-digital interference

protection standards to be developed hi a future rulemaking proceeding. Although Petitioners

believe that "closely-spaced digital systems will be able to operate with D/U ratios below 45 dB

and still provide subscribers with signal quality no worse than that afforded in an analog

environment under the 45 dB D/U standard," Petitioners reiterate that further testing, at higher

modulation densities, will be required before the Commission can adopt the final interference

protection standards. Id. at 5-6.

35

aced digital systems will be able to operate with D/U ratios below 45 dB

and still provide subscribers with signal quality no worse than that afforded in an analog

environment under the 45 dB D/U standard," Petitioners reiterate that further testing, at higher

modulation densities, will be required before the Commission can adopt the final interference

protection standards. Id. at 5-6.

35. Similar to Hammett, Tarrant County generally supports the Petition, but it urges the

Commission to establish a mechanism to ensure that ITFS and MDS licensees are protected from

actual interference caused by digital transmissions. Tarrant County asserts that where actual

interference occurs, the digital operator must be required to remove the interference immediately,

at its own cost. See Tarrant County Comments at 2-3. In its reply, Petitioners contend that the

Commission should apply its current policies regarding actual interference to ITFS and MDS

signals, whether the interfering signal is from analog or digital transmissions, because digital

transmissions are no more likely to cause harmful interference than analog transmissions.

Petitioners add that Tarrant County has given no reason to believe that the Commission's current

policies in this regard are inadequate. See Reply at 7 n.14.

58 Cf. Section 21.937 of the Commission's Rules (providing in pertinent part that n[t]he level of acceptable

electromagnetic interference that occurs . . . can be negotiated and established by an agreement between the

appropriate parties," if the parties to the agreement file with die Commission a statement of no objection to the lesser

level of interference protection). MDS Auction Order, 10 FCC Red at 9695-96.

18860

Federal Communications Commission FCC 96-304

36. We believe that our current rules provide adequate mechanisms to deal with the

potential for harmful interference, as well as actual interference

priate parties," if the parties to the agreement file with die Commission a statement of no objection to the lesser

level of interference protection). MDS Auction Order, 10 FCC Red at 9695-96.

18860

Federal Communications Commission FCC 96-304

36. We believe that our current rules provide adequate mechanisms to deal with the

potential for harmful interference, as well as actual interference. Section 21.902 of the

Commission's Rules provides that MDS applicants, conditional licensees and licensees are

expected to "cooperate fully" in attempting to resolve problems of potential interference before

bringing them to the attention of the Commission, and are required to "[c]ooperate fully and hi

good faith" to resolve interference problems. 47 C.F.R. � 21.902(a) and (b)(2).59 Section 74.903

likewise provides that existing licensees and prospective applicants are expected to "cooperate

fully" in attempting to resolve problems of potential interference before bringing them to the

attention of the Commission. 47 C.F.R. � 74.903(c); see 47 C.F.R. � 74.903(d) and (e). As

Petitioners articulate, "given the paucity of complaints of actual interference that the Commission

has been called upon to resolve over the years, it appears that the existing policies work well."

Reply at 7 n.14. In addition, we have declared with respect to MDS stations and ITFS facilities

being leased or used for non-ITFS purposes, that if a station causes harmful interference within

the protected service area of another existing station and the interference is not de minimis, "we

will require the offending station to cease operations until the interference is eradicated

k well."

Reply at 7 n.14. In addition, we have declared with respect to MDS stations and ITFS facilities

being leased or used for non-ITFS purposes, that if a station causes harmful interference within

the protected service area of another existing station and the interference is not de minimis, "we

will require the offending station to cease operations until the interference is eradicated. The

station alleging that it is being interfered with will be required to make a clear and convincing

showing that the interference is occurring." Amendment of Parts 21, 74 and 94 of the

Commission's Rules and Regulations with regard to the technical requirements applicable to the

Multipoint Distribution Service, the Instructional Fixed Television Service and the Private

Operational-Fixed Microwave Service (OFS), 98 FCC 2d 68, 93 (1984). See id. at 92-93.

37. Thus, we find that Petitioners present satisfactory approaches for resolving Hammett's

first concern and those concerns expressed by Tarrant County. As for the situation where two

closely-spaced stations, which operate on the basis of frequency offset, both seek to convert to

digital operations, Hammett and Petitioners have proposed three solutions involving agreement

between the two parties. We believe, in the interest of fostering a clear, market-based solution,

that for the interim period governed by this ruling, any conflict resulting from this type of

situation must be resolved by agreement between the two parties, or we will grant neither party

the authority to modify its operations to employ digital technology. This approach will maintain

an environment free of harmful interference until we have the opportunity to adopt the final

59 Newly-adopted Section 21.938(a) of the Commission's Rules similarly provides that Basic Trading Area

(BTA) or partitioned service area (PSA) authorization holders "are expected to cooperate with one another" to protect

service in adjoining BTAs and PSAs. See MDS Auction Order, 10 FCC Red at 9696

an environment free of harmful interference until we have the opportunity to adopt the final

59 Newly-adopted Section 21.938(a) of the Commission's Rules similarly provides that Basic Trading Area

(BTA) or partitioned service area (PSA) authorization holders "are expected to cooperate with one another" to protect

service in adjoining BTAs and PSAs. See MDS Auction Order, 10 FCC Red at 9696. The newly-adopted MDS rules

also contain specific provisions for cure of actual interference. For instance, Section 21.938(d) provides that it is

the responsibility of a BTA or PSA authorization holder "to correct at its expense any condition of harmful

electromagnetic interference caused to authorized MDS service at locations within other BTAs or PSAs or within

the ... protected service areas of authorized or previously proposed ITFS and MDS stations (incumbents), or at

authorized or previously proposed ITFS receive sites." MDS Auction Reconsideration Order, 10 FCC Red at 13839.

Section 21.939 also provides that Commission staff may require an MDS conditional licensee or licensee to employ

any one of several enumerated interference abatement techniques, in the event "harmful interference occurs or appears

to occur." MDS Auction Order, 10 FCC Red at 9697.

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Federal Communications Commission FCC 96-304

interference protection standards applicable to the use of digital technology in the MDS and ITFS

services.

D. Application of Other MDS and ITFS Technical Rules in a Digital Environment

38. Petitioners argue that while there is flexibility in our current rules for authorization

of the use of digital technology,60 the rules nevertheless remain focused on NTSC transmissions,

and there are instances where the use of digital technology does not comport with these rules

in the MDS and ITFS

services.

D. Application of Other MDS and ITFS Technical Rules in a Digital Environment

38. Petitioners argue that while there is flexibility in our current rules for authorization

of the use of digital technology,60 the rules nevertheless remain focused on NTSC transmissions,

and there are instances where the use of digital technology does not comport with these rules.

Consequently, Petitioners maintain that the Commission should clarify how it will apply certain

of these rules in the digital environment, and permit "deviations" from any rules designed solely

to address NTSC issues, which are "inherently unsuitable for application to the use of digital

technology." Petition at 30.

1. Equipment Approval

39. Petitioners request that the Commission provide manufacturers an opportunity to

secure type acceptance for digital transmitters that comply with the relaxed out-of-band emissions

limitations proposed by Petitioners. They also request that manufacturers be offered the option

of obtaining digital type acceptance for "earlier designs that are already installed in analog

systems," but where a manufacturer does not do so, the Commission should afford the affected

MDS or ITFS licensee a vehicle for utilizing its existing transmitters, without meeting the type

acceptance requirement under 47 C.F.R. � 21.907(c). Petition at 32. Petitioners propose that rne

Commission allow use of existing analog transmitters adapted for digital transmission, but that

have not received digital type acceptance, to operate at reduced power and/or with appropriate

filtering, if necessary, in order to comply with the interim spectral mask sought by Petitioners.61

Petitioners further suggest that absent type acceptance, the licensee should be required to submit

a "proof-of-performance at the time of construction" of the digital system, demonstrating

compliance with the interim spectral mask. Petition at 32-33.

40

reduced power and/or with appropriate

filtering, if necessary, in order to comply with the interim spectral mask sought by Petitioners.61

Petitioners further suggest that absent type acceptance, the licensee should be required to submit

a "proof-of-performance at the time of construction" of the digital system, demonstrating

compliance with the interim spectral mask. Petition at 32-33.

40. Parts 21 and 74 of the Commission's Rules require that all MDS and ITFS

transmitters be type accepted. See 47 C.F.R. �� 21.120, 21.907(c), 74.938 and 74.952. For

manufacturers who- seek to secure digital type acceptance for newly-designed or modified

transmitters that comply with the interim spectral mask approved above, upon an appropriate

showing the Commission will grant type acceptance based on the conditions of waiver described

in this ruling. See 47 C.F.R. � 2.915(a) and (b). We intend to reevaluate digital type acceptance

issues in a future rulemaking proceeding on digital modulation for the MDS and ITFS services.

At the present time, given the public and industry interest in expediting the employment of digital

60 See paras. 9-11, supra.

61 See paras. 28-29, supra.

18862

Federal Communications Commission FCC 96-304

technology, notwithstanding the type acceptance requirements in Parts 21 and 74, we also will

allow MDS and ITFS licensees to use existing analog equipment modified for digital

transmissions that comply with the interim spectral mask approved above, without obtaining

digital type acceptance, subject to certain conditions incorporating Petitioners' "proof-of-

performance" proposal. Approval of the use of newly-designed digital transmitting equipment

will still be subject to type acceptance procedures pursuant to Parts 2, 21 and 74 of the

Commission's Rules.

41

transmissions that comply with the interim spectral mask approved above, without obtaining

digital type acceptance, subject to certain conditions incorporating Petitioners' "proof-of-

performance" proposal. Approval of the use of newly-designed digital transmitting equipment

will still be subject to type acceptance procedures pursuant to Parts 2, 21 and 74 of the

Commission's Rules.

41. Under this scheme, after the Commission staff grants a licensee's application to

employ digital technology, the licensee will incorporate a digital component (e.g., modulator or

exciter) into its existing base of transmission equipment, and perform on-site tests (measurements)

at the transmitter output to determine compliance with the interim spectral mask, as well as power

level and energy dispersal strictures discussed above. See paras. 21, 25 and 27-30, supra. The

licensee may rely on tests performed by the equipment manufacturer or by a test laboratory

confirming compliance with the interim spectral mask for a specific combination of digital

modulator and amplifiers. The licensee will then certify to the Commission, at the time it

certifies or notifies the Commission that construction of the station has been completed,62 that

these tests have been performed, the transmissions meet the interim spectral mask, the maximum

EIRP of its facility does not exceed the authorized EIRP, and the transmissions comply with the

spectral energy dispersal requirements. Test results must be furnished to the Commission upon

request. Thus, in furtherance only of the scheme delineated herein, we waive the requirements,

contained hi Subpart J of Part 2 of the Commission's Rules,63 pertaining to issuance of equipment

authorizations prior to operation, though we will allow manufacturers to seek type acceptance of

existing analog equipment modified for digital transmissions under the technical guidelines

described above in this ruling

rtherance only of the scheme delineated herein, we waive the requirements,

contained hi Subpart J of Part 2 of the Commission's Rules,63 pertaining to issuance of equipment

authorizations prior to operation, though we will allow manufacturers to seek type acceptance of

existing analog equipment modified for digital transmissions under the technical guidelines

described above in this ruling. Furthermore, any other rules in Parts 2, 21 and 74 containing

requirements for type acceptance and applicable to analog MDS or ITFS transmissions are waived

for existing analog equipment modified for digital transmissions. These waivers, as well as the

testing and statement-of-perfonnance process set forth above and additionally described below,

will be effective until final rules are adopted in the future.

2. Emission Designators

42. Petitioners state that MDS and ITFS stations using digital modulation "will Likely

employ" emission designators of 6MOOD7W for QAM and 6MOOC7W for VSB. Petition at 13

n.23. ITS believes that both applicants and equipment manufacturers who must seek type

acceptance of transmitting equipment would benefit from standardized emission designators, and

posits that 6MOOD1W for QAM and 6MOOC1W for VSB may be more accurate. ITS suggests

62 See para. 54, infra, for a specific description of these procedures.

63 47C.F.R. ��2.901 et seq.

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Federal Communications Commission FCC 96-304

that a "1," signifying a single channel of digital information, would be more correct than a "7,"

which is generally reserved for multiple channels of unrelated digital information

or QAM and 6MOOC1W for VSB may be more accurate. ITS suggests

62 See para. 54, infra, for a specific description of these procedures.

63 47C.F.R. ��2.901 et seq.

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Federal Communications Commission FCC 96-304

that a "1," signifying a single channel of digital information, would be more correct than a "7,"

which is generally reserved for multiple channels of unrelated digital information. ITS Comments

at 1-2.64 In its reply, Petitioners agree with ITS that it would be beneficial for the Commission

to clarify its policy regarding emission designators and to apply that policy uniformly.65

However, Petitioners contend that the issue of which emission designator is appropriate to QAM

and VSB systems has no bearing on the issues addressed in the Petition, and that the results of

the testing conducted for the Petition and the conclusions from that testing remain valid. See

Reply at 3-4.

43. We agree with ITS and Petitioners that standardization of emission designators would

be beneficial in eliminating confusion. Emission designators are governed by Section 2.201 of

the Commission's Rules, 47 C.F.R. � 2.201. Section 2.20l(d) provides that use of a "1," as

suggested by ITS, indicates that the signal modulating the carrier is a "single channel containing

quantized or digital information without the use of a modulating sub-carrier, excluding time-

division multiplex." 47 C.F.R. � 2.201 (d) (emphasis added). We envision that the modulating

signal will contain a time division multiplex of video, audio, and data signals from two or more

sources. Therefore, the more appropriate emission designators are 6MOOD7W for QAM and

6MOOC7W for VSB. Where necessary, applications may be amended to change the emission

designator to bring it into confonnance with those specified herein, and we will treat these

changes as minor amendments. See paras. 55-57, infra.

3. Transmission standards

44. Petitioners request that despite the mandates of 47 C.F.R

efore, the more appropriate emission designators are 6MOOD7W for QAM and

6MOOC7W for VSB. Where necessary, applications may be amended to change the emission

designator to bring it into confonnance with those specified herein, and we will treat these

changes as minor amendments. See paras. 55-57, infra.

3. Transmission standards

44. Petitioners request that despite the mandates of 47 C.F.R. � 21.907 that all MDS

licensees equip their facilities for NTSC transmission capability, the Commission not require

MDS licensees to offer NTSC service if the operator using the station elects and receives

authorization to transmit digitally. Petition at 31. When the Commission promulgated this rule

as part of the original rules governing MDS, NTSC transmission capability was retained as a

safeguard against other transmission standards that might prove lacking in quality. See MDS

Allocation Order, 45 FCC 2d at 624. We acknowledge that the technology upon which the

standards adopted in 1974 were based has changed substantially, and we recognize that digital

will likely be the primary transmission method for video programming for the foreseeable future.

64 ITS is one of the Petitioners and otherwise supports the Petition.

65 Petitioners note that there are several applications pending at the Commission which specify the same

emission designator as that referenced hi the Petition. If the Commission determines that a different emission

designator is proper for digital wireless cable, Petitioners request that the Commission permit amendments to those

applications. Petitioners further request that the Commission treat those amendments as minor amendments, though

emission designator changes are normally treated as major amendments under MDS rules. Petitioners reason that

there would be no actual change to the modulating signal itself and hence no threat of increased interference. See

Reply at 3-4 n.8

Commission permit amendments to those

applications. Petitioners further request that the Commission treat those amendments as minor amendments, though

emission designator changes are normally treated as major amendments under MDS rules. Petitioners reason that

there would be no actual change to the modulating signal itself and hence no threat of increased interference. See

Reply at 3-4 n.8.

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Federal Communications Commission FCC 96-304

In further recognition of the tested and proven quality of the digital modulation formats which

Petitioners seek to utilize,66 we find that waiver of Section 21.907 does not undermine the rule's

purpose. In addition, compliance with Section 21.907 for licensees who transmit digitally places

unnecessary burdens on such licensees. Cf. note 77, infra (MDS station identification

requirements removed where burdens on licensees outweighed benefits). Accordingly, we will

not require MDS licensees who utilize digital transmissions to equip their facilities for NTSC

transmission capability. Section 21.907 is hereby waived to the extent indicated in this

paragraph. For the same reasons, we also waive Section 74.950(f)(l) to the extent it requires

ITFS translators and boosters relaying digital signals to be designed so that the electrical

characteristics of an NTSC signal introduced into the input terminals will not be significantly

altered, except as to frequency and amplitude, by passage through the translator or booster. 47

C.F.R. � 74.950(f)(l).67

45

the same reasons, we also waive Section 74.950(f)(l) to the extent it requires

ITFS translators and boosters relaying digital signals to be designed so that the electrical

characteristics of an NTSC signal introduced into the input terminals will not be significantly

altered, except as to frequency and amplitude, by passage through the translator or booster. 47

C.F.R. � 74.950(f)(l).67

45. Tarrant County maintains that "for at least the near term" licensees should be

permitted to (1) flexibly employ digital operations on one or more, but not necessarily all, of their

authorized channels; (2) freely switch from analog to digital and digital to analog modulation

among channels and on the same channel; and (3) freely utilize digital technology to transmit

other modulations in addition to those advanced in the Petition, such as '"high definition'" or

"digital data broadcasting in the NTSC blanking intervals." Tarrant County Comments at 3-4.

Petitioners agree that the flexibility sought by Tarrant County is appropriate at least for the time

being, and they assert that the Petition contemplated that sort of flexibility. See Reply at 7.

However, Petitioners note that to the extent the technologies mentioned by Tarrant County do not

employ QAM or VSB, Tarrant County "should be required to demonstrate that its digital proposal

will not cause harmful electromagnetic interference to nearby stations." Id at n.15.

46. We fully support the flexibility sought by Tarrant County in its first two proposals.

Such flexibility could benefit both existing licensees and new applicants alike. However, as with

SR Telecom's request for consideration of the use of wireless loop technology on MDS

frequencies,68 no data was submitted here for evaluation of the merits of Tarrant County's third

proposal regarding transmission of other digital modulations

ought by Tarrant County in its first two proposals.

Such flexibility could benefit both existing licensees and new applicants alike. However, as with

SR Telecom's request for consideration of the use of wireless loop technology on MDS

frequencies,68 no data was submitted here for evaluation of the merits of Tarrant County's third

proposal regarding transmission of other digital modulations. Therefore, we find clarification of

the use of other digital modulation techniques beyond the scope of this ruling.69 We intend, in

66 See, e.g., Advanced Television Systems and Their Impact Upon the Existing Television Broadcast Service,

Fifth Further Notice of Proposed Rule Making in MM Docket No. 87-268, FCC 96-207 (released May 20, 1996).

67 Section 74.950(f)(l) was adopted in 1971. See Amendment of Part 74, Subpartl of the Commission's Rules

and Regulations Governing Instructional Television Fixed Stations to Provide for the Operation of Low Power Relay

Stations (Translators or Boosters), 29 FCC 2d 192, 196 (1971).

68 See para. 12, supra.

69 Our action is without prejudice to any subsequent filing by Tarrant County.

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Federal Communications Commission FCC 96-304

a future rulemaking proceeding, to approach the issue of alternative uses of MDS and ITFS

spectrum in a digital environment.

4. Equipment standards. Modulation Limits and Aural Power Limitations

47. Petitioners contend that the transmission equipment requirements imposed by 47

C.F.R. �� 21.908(a) and 74.950(a) pertaining to NTSC signal waveform and transmitter

performance characteristics are "[b]y their very nature" incompatible with digital transmissions,

and "should be inapplicable" in the digital environment. Petition at 31. Similarly, Petitioners

maintain that the Commission should not apply 47 C.F.R � 74.970 to a station utilizing digital

transmissions because the modulation parameters specified in that rule are specific to analog

transmissions. Petition at 33

ristics are "[b]y their very nature" incompatible with digital transmissions,

and "should be inapplicable" in the digital environment. Petition at 31. Similarly, Petitioners

maintain that the Commission should not apply 47 C.F.R � 74.970 to a station utilizing digital

transmissions because the modulation parameters specified in that rule are specific to analog

transmissions. Petition at 33. Petitioners likewise assert that Sections 21.904(d) and 74.935(d)

of the Commission's Rules regarding aural signal power are inapplicable hi the digital

environment, where there are no separate aural and visual carriers.70 Moreover, waiving Sections

21.904(d) and 74.935(d) when digital modulation is employed is consistent with the rules'

purpose, namely the reduction of the potential for harmful adjacent channel interference,71 because

Petitioners' proposal will result in improved adjacent channel performance.72 Petition at 34. To

the extent that Sections 21.904(d), 21.908(a), 74.935(d), 74.950(a) and 74.970 are incompatible

with digital transmissions or the provisions of this ruling, those rules are hereby waived.

5. Transmission of ITFS Call Signs

48. Section 74.982(b)-(f) requires ITFS licensees to transmit their call signs periodically.73

47 C.F.R. � 74.982(b)-(f). Petitioners argue that compliance with this rule, once an ITFS station

commences digital transmission, will be costly and will provide little, if any, public benefit.

Petitioners therefore request that until permanent rules regulating the use of digital in MDS and

ITFS are adopted, "the Commission should spare licensees the cost of compliance ... by not

applying the requirements of Sections 74.982(b)-(f) to ITFS facilities operating in a digital

mode." Petition at 35

s digital transmission, will be costly and will provide little, if any, public benefit.

Petitioners therefore request that until permanent rules regulating the use of digital in MDS and

ITFS are adopted, "the Commission should spare licensees the cost of compliance ... by not

applying the requirements of Sections 74.982(b)-(f) to ITFS facilities operating in a digital

mode." Petition at 35. In the alternative, Petitioners seek clarification of whether the

Commission intends for the call signs to be transmitted in analog format or digital format, and

if in digital format, whether such transmission must be made over one channel or all of the

channels created through use of compression. Petition at 34-35.

70 Sections 21.904(d) and 74.93 5(d) identically provide that the peak power of the aural signal may not exceed

10 percent of the peak visual power of the transmitter, and that the Commission may order a reduction in aural signal

power to diminish the potential for harmful interference. 47 C.F.R. �� 21.904(d) and 74.935(d).

71 See Wireless Cable Order, 5 FCC Red at 6421.

72 See paras. 17 and 20, supra.

73 Part 21 of the Commission's Rules does not impose a corresponding obligation on MDS licensees.

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Federal Communications Commission FCC 96-304

49. In establishing the station identification requirements of Section 74.982, the

Commission described their primary purpose as showing that the operation is licensed. FTPS

Allocation Order, 39 FCC at 860.74 The importance of showing that the station is licensed was

further explained in another context as protecting stations against accusations of wrongdoing,

because there was a "strong suspicion" that signals originated from an unlicensed transmitter

where signals were observed but call signs were not transmitted. See Amendment of Section

74.682 of the Commission's Rules and Regulations Concerning Station Identification of Television

Auxiliary Broadcast Stations, 5 FCC 2d 767, 769 (1966)

s protecting stations against accusations of wrongdoing,

because there was a "strong suspicion" that signals originated from an unlicensed transmitter

where signals were observed but call signs were not transmitted. See Amendment of Section

74.682 of the Commission's Rules and Regulations Concerning Station Identification of Television

Auxiliary Broadcast Stations, 5 FCC 2d 767, 769 (1966). In the television auxiliary broadcast

station identification order, the Commission emphasized that adequate station identification

"assurefs] proper enforcement of our rules and prompt relief from disruptive interference should

such occur." Id. at 771. Call sign transmission also keeps the public aware of a station's identity

and facilitates the reporting by members of the public of infractions, though the reporting of

infractions by the public "is not the primary purpose of station identification." Id. at 769.

50. The Commission's rules currently require public services such as ITFS, low power

TV75 and AM-FM-TV broadcast services76 - to broadcast station identifications, while private

services such as MDS77 and Private Operational-Fixed Microwave Service78 are exempt from this

requirement. Although requiring transmission of station identifications may continue to benefit

the enforcement process, it appears that such requirements create some burdens on licensees.79

In this regard, Petitioners complain about the potential costs of complying with the call sign

transmission requirement once an ITFS station commences digital transmission, and they argue

74 Section 74.982 was originally codified as Section 4.982. Id. The ITFS station identification rules remain

essentially unchanged from those originally promulgated in 1963, except for added provisions covering low power

ITFS relay stations and temporary fixed ITFS stations.

75 See 47 C.F.R. � 74.783.

76 See 47 C.F.R. � 73.1201

an ITFS station commences digital transmission, and they argue

74 Section 74.982 was originally codified as Section 4.982. Id. The ITFS station identification rules remain

essentially unchanged from those originally promulgated in 1963, except for added provisions covering low power

ITFS relay stations and temporary fixed ITFS stations.

75 See 47 C.F.R. � 74.783.

76 See 47 C.F.R. � 73.1201.

77 Call sign transmission was required for MDS stations until these station identification requirements were

removed in 1987. In so doing, we concluded that the station identification requirements, among others, "have been

a burden without corresponding benefits to licensees." Revision of Part 21 of the Commission's Rules, Report and

Order, 2 FCC Red 5713, 5727 (1987).

78 See 47 C.F.R. � 94.105. We recently consolidated the fixed microwave rules into a new Part 101, and

Section 94.105 will be recodified as Section 101213. Reorganization and Revision of Parts 1, 2, 21, and 94 of the

Rules to Establish a New Part 101 Governing Terrestrial Microwave Fixed Radio Services, Report and Order, FCC

96-51 (released February 29, 1996).

79 See note 77, supra. For instance, the justification of protecting stations from false accusations of

wrongdoing, see para. 49, supra, while well-intentioned as a protective benefit to licensees, may in reality constitute

more of a burden than a benefit.

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Federal Communications Commission FCC 96-304

that "there is no evidence that the transmission of call signs by ITFS licensees has resulted in any

better operating environment than is the case with respect to the MDS. It is a relatively simple

matter to determine any source of harmful electrical interference without reference to a call sign."

Petition at 34 n.62. In addition, keeping the public aware of a station's identity may be

particularly less important with respect to the channels that are leased to a wireless cable operator,

because the subscriber will know the identity of the wireless cable operator

s a relatively simple

matter to determine any source of harmful electrical interference without reference to a call sign."

Petition at 34 n.62. In addition, keeping the public aware of a station's identity may be

particularly less important with respect to the channels that are leased to a wireless cable operator,

because the subscriber will know the identity of the wireless cable operator.

51. Section 74.982 was last amended in 1984,80 prior to adoption of most of the rules

encouraging the use of excess ITFS spectrum for wireless cable video programming services.

The ITFS channels that are leased to wireless cable operators arguably function as private, rather

than public, services. Moreover, the burdens of requiring ITFS licensees to transmit call signs

may outweigh the benefits, especially where the channels are leased to a wireless cable operator,

whose identity is readily discernible and whose licensing status is readily ascertainable. For these

reasons, we plan to address the wisdom of continued ITFS call sign transmission requirements

in a future rulemaking proceeding. Until that time, however, we do not find a waiver of these

requirements for ITFS stations employing digital technology to be appropriate. In response to

Petitioners' alternative request that we clarify our ITFS call sign transmission requirements as

they apply to stations utilising digital technology, we will interpret Section 74.982(b),81 for the

interim period governed by this ruling, as requiring ITFS stations to transmit call signs only on

channels reserved for ITFS programming during the hours reserved for such programming.82

Until we undertake a future rulemaking on the issue, the interpretation of Section 74.982(b) set

forth herein will apply, regardless of whether the ITFS station is transmitting in analog or digital.

Furthermore, the call sign should be transmitted in the same modulation in which the ITFS

programming is transmitted. Cf. paras

TFS programming during the hours reserved for such programming.82

Until we undertake a future rulemaking on the issue, the interpretation of Section 74.982(b) set

forth herein will apply, regardless of whether the ITFS station is transmitting in analog or digital.

Furthermore, the call sign should be transmitted in the same modulation in which the ITFS

programming is transmitted. Cf. paras. 45-46, supra (authorizing ITFS and MDS licensees to

flexibly switch from analog to digital and digital to analog modulation among channels and on

the same channel).

E. Application Procedures

52. This Declaratory Ruling and Order clarifies the Commission's interim policies, rules

and procedures pertaining to MDS licensees, conditional licensees and applicants with pending

applications, as well as ITFS licensees, permittees and applicants with pending applications, who

elect to transmit a QAM or VSB digital signal. It also governs the new station applications filed

80 See ITFS Technical Order, 98 FCC 2d at 941, adding Section 74.982(f) dealing with temporary fixed ITFS

stations.

81 Section 74.982(b) provides in pertinent part that "each instructional television fixed station shall transmit

its call sign."

82 See para. 58, infra, for discussion of ITFS programming requirements.

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Federal Communications Commission FCC 96-304

by MDS auction winners or BTA authorization holders, or filed for ITFS licenses in a filing

window,83 seeking authority to transmit digitally. This ruling makes clear that each party desirous

of utilizing digital transmissions must apply for such authority by filing a formal application or

application amendment, and receive such authority from the Commission, prior to installing and

operating digital transmission equipment. A separate application or amendment must be filed for

each station for which digital authority is sought

y. This ruling makes clear that each party desirous

of utilizing digital transmissions must apply for such authority by filing a formal application or

application amendment, and receive such authority from the Commission, prior to installing and

operating digital transmission equipment. A separate application or amendment must be filed for

each station for which digital authority is sought. These applications or amendments must specify

use of either a type accepted digital transmitter or a digital transmitter to be approved through

the testing and statement-of-performance process described above. See paras. 40-41, supra. As

discussed in paras. 14-15, supra, we will grant authority to utilize such transmitters for

transmission in QAM with modulation densities up to 256 or VSB modulation with densities up

to 16. Digital signals must be transmitted on a non-interference basis, subject to meeting the

interim spectral mask and other interim technical specifications described above.

53. To assist Commission staff hi expediting the processing of these applications and

amendments, each application or amendment should include a cover letter clearly indicating that

the attached application or amendment requests authority to utilize digital transmissions. MDS

licensees, conditional licensees or applicants must file a formal application to specify digital

emissions on FCC Form 304, while ITFS licensees, permittees or applicants must do so using

FCC Form 330. Pending applications in either service must be amended to specify a digital

emission designator

the attached application or amendment requests authority to utilize digital transmissions. MDS

licensees, conditional licensees or applicants must file a formal application to specify digital

emissions on FCC Form 304, while ITFS licensees, permittees or applicants must do so using

FCC Form 330. Pending applications in either service must be amended to specify a digital

emission designator. In either case, the MDS applicant for interim digital transmission authority

must, in addition to meeting all other pertinent application requirements, prepare a new or

amended interference showing to demonstrate non-interference to others by the new or amended

application for digital operations, and serve the showing and/or copy of the application on

potentially affected parties, in accordance with Sections 21.902 and recently added 21.938(g) of

the Commission's Rules, hi the same manner that these rules relate to applications for analog

transmissions.84 MDS applicants generally are not required to include the interference studies

with their applications; nevertheless, applicants for interim digital transmission authority may

wish to submit these studies or any other information which they feel may be helpful to the

processing of their applications. While applicants for minor changes to ITFS applications or

facilities85 normally are not required to prepare or serve interference showings, we will require

during the interim period that ITFS applicants for digital authority follow the same procedures

as those that we have mandated for MDS applicants, as discussed above. We will use the same

83 See Amendment of Part 74 of the Commission's Rules With Regard to the Instructional Television Fixed

Service, 10 FCC Red 2907 (1995) (hereinafter ITFS Window Filing Order)

ence showings, we will require

during the interim period that ITFS applicants for digital authority follow the same procedures

as those that we have mandated for MDS applicants, as discussed above. We will use the same

83 See Amendment of Part 74 of the Commission's Rules With Regard to the Instructional Television Fixed

Service, 10 FCC Red 2907 (1995) (hereinafter ITFS Window Filing Order).

84 See MDS Auction Order, 10 FCC Red at 9685-88,9697; MDS Auction Reconsideration Order, 10 FCC Red

at 13838,13839; Second Wireless Cable Reconsideration Order, 10 FCC Red at 7098-99; and Third Wireless Cable

Reconsideration Order at 17.

85 See paras. 55-56, infra.

18869

Federal Communications Commission FCC 96-304

approach for MDS and ITFS applicants in light of the newness of digital operations in wireless

cable, as well as the fact that most ITFS stations are part of wireless cable systems.86 We hold

that all of the waivers in this ruling, which are granted in the public interest, are conditioned

upon applicants for interim digital authority complying with these interference showing

requirements. In lieu of an interference showing, MDS or ITFS applicants for interim digital

transmission authority may submit with their applications written statements of "no objection"

from all potentially affected licensees, conditional licensees, permittees, or applicants for

previously proposed stations, stating that these parties do not object to the digital operation of the

MDS or ITFS station, hi accordance with Sections 21.902 and 74.903 of the Commission's Rules,

as applicable.

54. Upon grant of the modified, amended or new application, a conditional licensee or

licensee who specifies use of a type accepted digital transmitter may install and test the

transmitter

y proposed stations, stating that these parties do not object to the digital operation of the

MDS or ITFS station, hi accordance with Sections 21.902 and 74.903 of the Commission's Rules,

as applicable.

54. Upon grant of the modified, amended or new application, a conditional licensee or

licensee who specifies use of a type accepted digital transmitter may install and test the

transmitter. An ITFS licensee may immediately begin to operate the transmitter upon completion

of construction, while an MDS conditional licensee may begin regular operation of the transmitter

upon proper submission of the FCC Form 304A, described below. Conditional licensees or

licensees who specify transmitters that are not type accepted for digital transmission may activate

their digital transmitters for the purpose of testing, as described in paras. 30 and 41, supra. After

installation or activation of the digital transmitter, whether type accepted or not, completion of

other necessary construction, and completion of any necessary testing, the MDS conditional

licensee will certify completion of construction on FCC Form 304A, and the ITFS licensee will

submit a letter notifying the Commission that construction has been completed.87 In conjunction

with the filing of the FCC Form 304A or the submission of the ITFS construction notification,

conditional licensees or licensees who specify a digital transmitter that is not type accepted must

also provide a statement certifying that the aforementioned tests have been performed, the

transmissions meet the interim spectral mask, the authorized value of EIRP is not exceeded, and

the transmissions comply with the spectral energy dispersal requirements. The statement

accompanying the FCC Form 304A or ITFS construction notification must also identify the name,

address, telephone number, and firm or company name of the person who performed the tests.

" Approximately 95 percent of all new ITFS applicants lease excess capacity to wireless cable operators

ot exceeded, and

the transmissions comply with the spectral energy dispersal requirements. The statement

accompanying the FCC Form 304A or ITFS construction notification must also identify the name,

address, telephone number, and firm or company name of the person who performed the tests.

" Approximately 95 percent of all new ITFS applicants lease excess capacity to wireless cable operators. See

MDS Auction Order, 10 FCC Red at 9594.

87 The ITFS service has a "one-step" licensing process whereby a successful applicant is awarded, as part of

the same authorization, both an implied construction permit and a license which is conditioned upon construction.

See ITFS Technical Order, 98 FCC 2d at 934-35. While no formal mechanism exists for the ITFS licensee to notify

the Commission that construction has been completed, this is customarily done in a letter sent by the licensee to the

Commission. See Amendment of Part 74 of the Commission's Rules and Regulations in Regard to the Instructional

Television Fixed Service, 59 RR 2d 1355, 1381 n.46 (1986) ("[T]he one-step licensing process . . . requires

notification of the completion of construction.").

18870

Federal Communications Commission FCC 96-304

55. Amendments to pending ITFS applications and applications to modify ITFS facilities

are governed by Section 74.911 of the Commission's Rules, 47 C.F.R. � 74.911. Section

74.91 l(a) states that an application will be considered to be one for a major change if it involves

adding or changing channels, changing polarization, increasing power or transmitting antenna

height by certain amounts, or relocating a facility's transmitter site by at least 10 miles. See ITFS

Window Filing Order, 10 FCC Red at 2923-24. Applications for any other changes normally are

considered to be for minor changes.

56. We do not believe that proposals to use digital transmitters need to be considered

major changes under Part 74 of the Commission's Rules

transmitting antenna

height by certain amounts, or relocating a facility's transmitter site by at least 10 miles. See ITFS

Window Filing Order, 10 FCC Red at 2923-24. Applications for any other changes normally are

considered to be for minor changes.

56. We do not believe that proposals to use digital transmitters need to be considered

major changes under Part 74 of the Commission's Rules. Classifying such proposals as major

changes would restrict their filing to filing windows. See ITFS Window Filing Order, 10 FCC

Red at 2907-11. In addition, the proposed use of digital compression does not give an applicant

for interim digital authority the right to add any new ITFS channels, as contemplated by the

major change provisions of Section 74.911 (a). See note 11, supra; cf. Comband II, 61 RR 2d

at 146 (use of Comband analog compression does not increase the number of channels utilized).

Furthermore, while a major change triggers a petition to deny period under Section 74.91 l(c),

interested parties are provided adequate announcement of a minor change through its listing on

public notice, and they may file objections pursuant to 47 C.F.R. �� 74.910 and 73.3587.

Commission staff also retains the flexibility under Section 74.911 to reclassify any application

as a major change should the circumstances warrant Therefore, ITFS applications proposing

substitution of a digital transmitter, which are filed in accordance with the procedures described

above, will normally be regarded as minor changes. Cf. Comband II, 61 RR 2d at 146

(considering substitution of a Comband analog compression transmitter to be a minor change

under Section 74.911). Such applications may be filed at any time and are not subject to window

filing procedures. However, we still are as concerned about interference avoidance with ITFS

digital operations as we are with MDS digital operations, so we are requiring performance of

interference studies by ITFS applicants for interim digital transmission authority

mitter to be a minor change

under Section 74.911). Such applications may be filed at any time and are not subject to window

filing procedures. However, we still are as concerned about interference avoidance with ITFS

digital operations as we are with MDS digital operations, so we are requiring performance of

interference studies by ITFS applicants for interim digital transmission authority. See para. 53,

supra. We intend to reexamine the classification of such applications in a future rulemaking

proceeding.

57. An MDS application amendment to change the type of transmitter emission is

normally considered to be a major amendment under 47 C.F.R. � 21.23(c)(2)(iii). However, for

purposes of this interim ruling, pursuant to 47 C.F.R. � 1.3, we waive Section 21.23(c)(2)(iii) on

our own motion and will consider amendments to change to digital transmission to be minor.88

Modifications to MDS facilities to change to digital transmission are governed by 47 C.F.R.

88 When completing FCC Form 304, MDS applicants filing amendments to change to digital transmission shall

check "Minor amendment to pending application" for Question 3.

18871

Federal Communications Commission FCC 96-304

� 21.40(a).89 Pursuant to 47 C.F.R. � 21.27(a)(l) and (5), as applicable, public notice will be

given of the filing of either a formal application by a licensee or conditional licensee proposing

to add or switch to digital transmission, or an amendment to a pending application for this

purpose. For purposes of this interim ruling, we also waive 47 C.F.R. � 21.27(c) to the extent

it requires a thirty day waiting period following the issuance of a public notice listing an

application to modify an MDS facility for digital operations. MDS and ITFS parties in interest

will be given an opportunity to comment and to raise interference objections hi accordance with

Section 21.300)) of the Commission's Rules, 47 C.F.R. � 21.30(b)

so waive 47 C.F.R. � 21.27(c) to the extent

it requires a thirty day waiting period following the issuance of a public notice listing an

application to modify an MDS facility for digital operations. MDS and ITFS parties in interest

will be given an opportunity to comment and to raise interference objections hi accordance with

Section 21.300)) of the Commission's Rules, 47 C.F.R. � 21.30(b). These rule waivers will

expedite the introduction of digital technology to wireless cable under interim authority, and bring

the procedures for processing such applications into conformance with the procedures pertaining

to ITFS applications for interim digital authority. Moreover, there will be no detriment to the

public interest resulting from these waivers, because MDS applicants for interim digital authority

must comply with all interference protection and study requirements normally relevant to MDS

applicants, and the testing and statement-of-performance process described above will provide

further safeguards against harmful interference.

F. ITFS Programming Requirements

58. Section 74.931 of the Commission's Rules describes the purpose and permissible

service of ITFS stations, and also sets forth the minimum ITFS programming requirements for

ITFS licensees. See 47 C.F.R. � 74.931. Section 74.93 l(e)(9), which allows an ITFS licensee

to shift its required educational programming onto fewer than its authorized number of channels

via channel loading or channel mapping, specifies that an ITFS licensee who leases excess

channel capacity to a wireless cable operator must provide a total average of at least 20 hours per

channel per week of ITFS programming on its authorized channels. ITFS licensees in such lease

arrangements also retain the right to recapture "an average of an additional 20 hours per channel

per week for simultaneous programming on the number of channels for which it is authorized."

47 C.F.R. � 74.93 l(e)(9)

o a wireless cable operator must provide a total average of at least 20 hours per

channel per week of ITFS programming on its authorized channels. ITFS licensees in such lease

arrangements also retain the right to recapture "an average of an additional 20 hours per channel

per week for simultaneous programming on the number of channels for which it is authorized."

47 C.F.R. � 74.93 l(e)(9). Petitioners ask the Commission to confirm that, at least during the

interim period governed by this ruling, we will not require additional ITFS programming by

licensees who expand their spectrum capacity by utilizing digital compression technology. See

Petition at 35. Petitioners particularly rely on the Mass Media Bureau's decision hi Comband

II and urge the Commission to retain the policy announced in that case. Petitioners suggest that

any interim ruling would be without prejudice to any rules that may ultimately be adopted

establishing the recapture rights of ITFS licensees with respect to the increased capacity made

89 We will classify such filings as modifications of station licenses under Section 21.40(a). Although we

believe the terms "major" and "minor" are not precisely pertinent, the MDS applicant for interim authority to modify

its facilities for digital operations nevertheless shall check "Major change to authorized station" for Question 3 when

completing FCC Form 304. Likewise, the MDS applicant for such modifications shall remit the fee prescribed in

47 C.F.R. � 1.1105(7Xb) when filing the FCC Form 304.

18872

Federal Communications Commission FCC 96-304

available by digital compression. See Petition at 37.90 We decline in the context of this petition

for declaratory ruling to impose any changes in ITFS programming requirements. Those

requirements remain the same regardless of the modulation technology. We will defer

consideration of any changes to our ITFS programming requirements to a future rulemaking.

IV. ORDERING CLAUSES

59

CC 96-304

available by digital compression. See Petition at 37.90 We decline in the context of this petition

for declaratory ruling to impose any changes in ITFS programming requirements. Those

requirements remain the same regardless of the modulation technology. We will defer

consideration of any changes to our ITFS programming requirements to a future rulemaking.

IV. ORDERING CLAUSES

59. Accordingly, IT IS ORDERED that under the authority contained hi Section 4(i) of

the Communications Act of 1934, as amended, 47 U.S.C. � 154(i), and Section 554(e) of the

Administrative Procedure Act, 5 U.S.C. � 554(e), the Petition For Declaratory Ruling, on the use

of digital modulation by Multipoint Distribution Service and Instructional Television Fixed

Service Stations, IS GRANTED to the extent specified above. This Declaratory Ruling and

Order shall be effective upon its release and shall remain effective until adoption of rules

governing digital transmissions in MDS and ITFS in a future rulemaking proceeding. See 47

C.F.R. �� 1.4(b)(2) and 1.103. Nothing in this Declaratory Ruling and Order shall prejudice the

outcome of such a rulemaking proceeding.

60. IT IS FURTHER ORDERED that Subpart J of Part 2 of the Commission's Rules

(Sections 2.901 et seg.) pertaining to issuance of equipment authorizations prior to operation, and

Sections 21.120, 21.907(c), 74.938, 74.952, and any other of the Commission's Rules in Parts

2, 21 and 74 containing requirements for type acceptance of equipment and applicable to analog

MDS or ITFS transmissions, ARE WAIVED for existing analog equipment modified for digital

transmissions, to the extent specified above, subject to such conditions set forth in paras. 41 and

53 in the foregoing order.

61. IT IS FURTHER ORDERED that Sections 21.23(c)(2)(iii), 21.27(c), 21.904(d),

21.907,21.908(a) and (b), 74.935(d), 74.936(b), 74.950(a) and (f)(l), and 74.970 ARE WAIVED

to the extent specified above, subject to such conditions set forth in para

ified for digital

transmissions, to the extent specified above, subject to such conditions set forth in paras. 41 and

53 in the foregoing order.

61. IT IS FURTHER ORDERED that Sections 21.23(c)(2)(iii), 21.27(c), 21.904(d),

21.907,21.908(a) and (b), 74.935(d), 74.936(b), 74.950(a) and (f)(l), and 74.970 ARE WAIVED

to the extent specified above, subject to such conditions set forth in para. 53 in the foregoing

order.

90 In their comments, both Kraskin & Lessee and the Rural Coalition reiterate Petitioners' request with regard

to ITFS programming requirements. See Kraskin & Lessee Comments at 2; Rural Coalition Comments at 3.

18873

Federal Communications Commission FCC 96-304

62. IT IS FURTHER ORDERED that the staff of the Mass Media Bureau shall send

copies of this declaratory ruling to the parties filing formal comments by certified mail, return

receipt requested.

FEDERAL COMMUNICATIONS COMMISSION

William F. Caton

Acting Secretary

18874

APPENDIX A

PETITIONERS

Wireless Cable Association

International, Inc.

Wireless Cable Digital Research

Wireless Cable Research &

Development Center

ACS Enterprises, Inc.

Aims Community College

Alda Wireless Holdings, Inc.

Alliance for Higher Education

American Telecasting, Inc.

American Wireless Systems, Inc.

Andrew Corp.

Applied Video Technologies, Inc.

Arizona Board of Regents for

Benefit of the University of

Arizona

Atlanta MDS Inc.

Broadcast Cable Bloomington, Inc.

Broadcast Data Corporation

Block & Associates

Cablemaxx, Inc.

CAI Wireless Systems, Inc.

California Amplifier, Inc.

CFW Cable, Inc.

Chicago MDS Company

Communication Microwave Corp.

Colorado State University

Cross Country Wireless, Inc.

Decathlon Communications, Inc.

DeLawder Communications, Inc.

Denver Public Schools

Diocese of Orlando

EMCEE Broadcast Products

Evans Microwave, Inc.

Fresno City College

G & S Television Network, Inc.

General Instrument Corp

California Amplifier, Inc.

CFW Cable, Inc.

Chicago MDS Company

Communication Microwave Corp.

Colorado State University

Cross Country Wireless, Inc.

Decathlon Communications, Inc.

DeLawder Communications, Inc.

Denver Public Schools

Diocese of Orlando

EMCEE Broadcast Products

Evans Microwave, Inc.

Fresno City College

G & S Television Network, Inc.

General Instrument Corp.

Greater Dayton Public Television

Heartland Wireless Communications

Hispanic Information &

Telecommunications Network, Inc.

Indiana Higher Education

Telecommunications System

Indio Wireless Partnership

Instructional Opportunities, Inc.

ITS Corporation

KCTS Television

Kessler and Gehman Associates, Inc.

Lakeland BDC - MMDS Company

Lance Industries

Libmot Communications Partnership

Los Angeles MDS Company

Madison Communications, Inc.

Magellan University

Mariposa County Schools

McConnell Communications, Inc.

Microwave Filter Corp.

Milwaukee MDS Company

Minneapolis MDS Company

Robert S. Moore

Multimedia Development Corp.

National Wireless Holdings, Inc.

Network for Instructional TV, Inc.

New York MDS, Inc.

Orlando BDC - MMDS Company

Omni Microwave, Ltd.

Oregon Public Broadcasting

Orion Broadcasting Systems, Inc.

Pacific Monolithics, Inc.

People's Choice TV Corp.

Phoenix MDS Company

Pikes Peak Community College

Polk Community College

Portland Community College

Poudre School District - Rl

18875

Preferred Entertainment, Inc.

Pueblo Community College

Radio Training Network

Rapid Choice TV, Inc.

Regents of the University of

Minnesota

Region IV Education Service Center

Sacramento Wireless Company

San Diego MDS Company

South Carolina Educational Television

Commission

Southeastern College of the

Assemblies of God

Specchio Developers Ltd.

St. Louis MDS Company

St. Louis Regional Educational and

Public Television Commission

State of Wisconsin Educational and

Communications Board

Superchannels of Las Vegas, Inc

gion IV Education Service Center

Sacramento Wireless Company

San Diego MDS Company

South Carolina Educational Television

Commission

Southeastern College of the

Assemblies of God

Specchio Developers Ltd.

St. Louis MDS Company

St. Louis Regional Educational and

Public Television Commission

State of Wisconsin Educational and

Communications Board

Superchannels of Las Vegas, Inc.

Terres Associates

Teton Wireless Television

Thompson School District - R2J

University of Colorado at Colorado

Springs

University of Southern Colorado

University System of the Ana G.

Mendez Educational Foundation

Washington MDS Company

Weld County Schools

Weld County School District - 1

Weld County Schools - RE4

Wireless Broadcasting Systems of

America, Inc.

Wireless Cable of Atlanta, Inc.

Wireless Holdings, Inc.

Wireless One, Inc.

Zenith Electronics Corporation

18876

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Request for Declaratory Ruling on the Use of Digital Modulation by Multipoint Distribution Service and Instructional Television Fixed Service Stations · FCC-96-304: Request for Declaratory Ruling on the Use of Digital Modulation by Multipoint Distribution Service and Instructional Television Fixed Service Stations (07/10/96) | Frix