96-1247. Fixed Point-to-Point Microwave Service  

  • [Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
    [Proposed Rules]
    [Pages 2465-2469]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-1247]
    
    
    
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    FEDERAL COMMUNICATIONS COMMISSION
    
    47 CFR Parts 1, 2, 21, and 94
    
    [FCC 95-500]
    
    
    Fixed Point-to-Point Microwave Service
    
    AGENCY: Federal Communications Commission.
    
    ACTION: Proposed rule.
    
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    SUMMARY: By the Notice of Proposed Rule Making (NPRM) portion of this 
    NPRM and Order, the Commission proposes to provide a channeling plan 
    and licensing and technical rules for fixed point-to-point microwave 
    operations in the 37.0-38.6 GHz (37 GHz) band and proposes to amend the 
    licensing and technical rules for fixed point-to-point microwave 
    operations in the 38.6-40.0 GHz (39 GHz) band. This action would make 
    available additional channels in the 37 GHz band and would ensure more 
    efficient use of the 39 GHz band in the future. The objectives of this 
    proposal are to provide adequate point-to-point microwave spectrum, 
    including channels for the support of broadband personal communications 
    services (PCS) and other services, and to provide for technical 
    commonality across the bands.
    
    DATES: Comments must be submitted on or before February 12, 1996 and 
    reply comments must be submitted on or before February 27, 1996. 
    Written comments by the public on the proposed and/or modified 
    information collections are due February 12, 1996. (The comment and 
    reply dates originally were set for January 16, 1996 and January 31, 
    1996, respectively. However, the Commission's Office of Engineering and 
    Technology, under delegated authority, extended the comment and reply 
    period due to the exigency caused by the closing of the government; see 
    Order Extending Time, DA 96-15, released January 16, 1996.)
        Written comments must be submitted by OMB on the proposed and/or 
    modified information collections on or before March 26, 1996.
    
    ADDRESSES: Comments and reply comments should be sent to Office of the 
    Secretary, Federal Communications Commission, Washington, DC 20554. In 
    addition to filing comments with the Secretary, a copy of any comments 
    on the information collections contained herein should be submitted to 
    Dorothy Conway, Federal Communications Commission, Room 234, 1919 M 
    Street NW., Washington, DC 20554, or via the Internet to 
    dconway@fcc.gov, and to Timothy Fain, OMB Desk Officer, 10236 
    
    [[Page 2466]]
    NEOB, 725 17th Street NW., Washington, DC 20503 or via the Internet to 
    fain__t@al.eop.gov.
    
    FOR FURTHER INFORMATION CONTACT: Tom Mooring, Office of Engineering and 
    Technology, 202-418-2450. For additional information concerning the 
    information collections contained in this NPRM contact Dorothy Conway 
    at 202-418-0217, or via the Internet at dconway@fcc.gov.
    
    SUPPLEMENTARY INFORMATION: This is a summary of the Commission's NPRM, 
    adopted and released on December 15, 1995. The complete NPRM and Order 
    is available for inspection and copying during normal business hours in 
    the FCC Reference Center (Room 239), 1919 M Street NW., Washington, DC, 
    and also may be purchased from the Commission's duplication contractor, 
    International Transcription Service, (202) 857-3800, 2100 M Street NW., 
    Suite 140, Washington, DC 20037.
    
    Paperwork Reduction Act
    
        This NPRM contains either a proposed or modified information 
    collection. The Commission, as part of its continuing effort to reduce 
    paperwork burdens, invites the general public and OMB to comment on the 
    information collections contained in this NPRM, as required by the 
    Paperwork Reduction Act of 1995, Pub. L. No. 104-13. Public and agency 
    comments are due at the same time as other comments on this NPRM; OMB 
    comments are due 60 days from date of publication of this NPRM in the 
    Federal Register. Comments should address: (a) whether the proposed 
    collection of information is necessary for the proper performance of 
    the functions of the Commission, including whether the information 
    shall have practical utility; (b) the accuracy of the Commission's 
    burden estimates; (c) ways to enhance the quality, utility, and clarity 
    of the information collected; and (d) ways to minimize the burden of 
    the collection of information on the respondents, including the use of 
    automated collection techniques or other forms of information 
    technology.
    
        OMB Approval Number: N/A.
        Title: Proposed rule 21.711(b).
        Form No.: N/A.
        Type of Review: New collection.
        Respondents: Businesses or other for-profit.
        Number of Respondents: 300.
        Estimated Time Per Response: 40 hours.
        Total Annual Burden: 12,000 hours.
        Needs and Uses: Rule requires that respondents certify that they 
    have constructed a minimum number of installed and operating microwave 
    links no later than 18 months from adoption of the Report and Order in 
    this docket. If the Commission does not require this certification then 
    it would not know whether the spectrum is being used effectively.
    
        OMB Approval Number: N/A.
        Title: Proposed rule 21.711(b)(2).
        Form No.: N/A.
        Type of Review: New collection.
        Respondents: Businesses or other for-profit.
        Number of Respondents: 200.
        Estimated Time Per Response: 80 hours.
        Total Annual Burden: 16,000 hours.
        Needs and Uses: Rule requires that respondents not meeting the 
    construction threshold file a list of permanently installed or 
    operating microwave links that they wish to have grandfathered no later 
    than 18 months from adoption of the Report and Order in this docket. If 
    the Commission does not require this filing then it would not be able 
    to protect these incumbent operations from possible harmful 
    interference caused by new systems.
    
        OMB Approval Number: N/A.
        Title: Proposed rule 21.711(a)(4).
        Form No.: N/A.
        Type of Review: New collection.
        Respondents: Businesses or other for-profit.
        Number of Respondents: 500.
        Estimated Time Per Response: 256 hours.
        Total Annual Burden: 128,000 hours.
        Needs and Uses: Rule requires that respondents maintain a computer-
    readable database. This data would be used to facilitate coordination 
    with Government links that share the 37 GHz band with non-Government 
    licensees.
    
        OMB Approval Number: 3060-0064 and 3060-0402.
        Title: Application for a station authorization in the Private 
    Operational Fixed Microwave Radio Service; Application for a new or 
    modified microwave radio station license under Part 21.
        Form No.: FCC 402 and FCC 494.
        Type of Review: New collection.
        Respondents: Businesses or other for-profit.
        Number of Respondents: 100.
        Estimated Time Per Response: 2 hours.
        Total Annual Burden: 200 hours.
        Needs and Uses: Forms are used by applicants to apply to provide 
    either a common carrier service (FCC 494) or to use the spectrum for 
    private purposes (FCC 402). If the Commission did not require that 
    applicants file one these two forms then it would not know how to 
    regulate the licensees.
    
    Summary of MO&O
    
        1. By this action, the Commission proposes to provide a channeling 
    plan and licensing and technical rules for fixed point-to-point 
    microwave operations in the 37 GHz band. Adoption of this proposal 
    would make the band available for point-to-point microwave operations 
    that would provide communications infrastructure such as ``backhaul'' 
    and ``backbone'' communications links for services including broadband 
    PCS, cellular radio, and other commercial and private mobile radio 
    operations. The Commission observes that such infrastructure could also 
    facilitate the development of competitive wireless local telephone 
    service. Further, the Commission proposes a channeling plan based on 
    fourteen paired 50 megahertz channel blocks (with a 700 megahertz 
    separation between transmit and receive channel blocks) and four 
    unpaired 50 megahertz channel blocks, to allow licensees to subdivide 
    their channel blocks as they choose, service areas based on Basic 
    Trading Areas (BTAs), licensing by competitive bidding if mutually 
    exclusive applications are filed, and a minimal number of technical 
    rules designed to limit interference. Proposed technical rules include 
    specifications as to frequency tolerance, bandwidth, transmitter power, 
    directional antenna standards, digital modulation, and field strength 
    limitation at service area boundaries. The term of licenses in the 37 
    GHz band is proposed to be 10 years and comment is sought on the 
    appropriate buildout requirement.
        2. With regard to sharing the 37 GHz band between Government fixed 
    and non-Government point-to-point operations, the Commission proposes 
    to share the band on a first-come, first-served basis as follows. 
    Commission licensees would be required to protect incumbent operations 
    when they build out their system. Any new Government fixed operations 
    would be coordinated on a link-by-link basis with the affected 
    Commission licensees through the existing Government/non-Government 
    coordination process. In order for the Commission to process a 
    coordination request, non-Government licensees would be required to 
    maintain a computer-readable database with the coordinates of their 
    sites, frequencies (occupied bandwidth) assigned to their sites, EIRP, 
    and other needed information for all of their links.
        3. In addition, comment is requested on whether the 37 GHz band or 
    a portion of it should be made available for a wider array of fixed 
    services, such 
    
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    as point-to-multipoint systems; whether there is a requirement for 
    mobile operations in the 37 GHz band and, if so, whether such 
    operations should be on a co-primary or secondary basis to the point-
    to-point operations; and whether the Commission has overestimated 
    demand and, thus whether a portion of the band should be held in 
    reserve for future services. If the permissible use of the 37 GHz and 
    39 GHz bands (see para. 6, below) is broadened to include other fixed 
    and/or mobile uses, the Commission would not anticipate separately 
    licensing such uses but rather would include them within the uses 
    permitted under our proposed BTA licenses. In response to a request 
    from the National Telecommunications and Information Administration 
    (NTIA), the Commission solicits comment on additionally allocating the 
    37-38 GHz band to the space research (space-to-Earth) service.
        4. If competitive bidding is not adopted for the 37 GHz band, 
    comment is solicited alternatively on licensing the 37 GHz band in the 
    same manner as the 39 GHz band is currently licensed with the following 
    modifications. Service areas would be based on BTAs. Eligibility for 
    Channel Blocks 15 through 20 would be limited to broadband PCS 
    licensees until three months after the last broadband PCS license is 
    issued. Eligibility for Channel Blocks 21 through 28 would be limited 
    to broadband PCS, cellular, and wide-area SMR licensees for three 
    years, commencing with the effective date of the rules adopted in this 
    proceeding. After the expiration of these restrictions, eligibility 
    would be open to all parties.
    Eligibility for unpaired Channel Blocks 29 through 32 would be 
    unrestricted. Further, the Commission proposes to require that 
    applicants demonstrate a need for each channel requested, that 
    applicants initially be limited to one channel per designated service 
    area, that all licensees, except broadband PCS licensees, construct 
    their system within 18 months and that such construction be defined as 
    the ability to pass communications traffic significantly throughout the 
    service area, and that license transfers of unbuilt systems be 
    prohibited. Additionally, each licensee would be permitted to apply for 
    an additional channel in its service area only when it is operating its 
    previously authorized channel(s) at or near expected capacity. Comment 
    is solicited on whether licensees should be required at some time in 
    the future to provide the Commission with a report of their operations 
    so that a second licensing opportunity could be provided for parties 
    interested in those portions of licensed service areas that are unused. 
    Comment is specifically requested on what criteria should be applied in 
    determining whether a licensed service area is underused to the point 
    that other applicants should be permitted to propose service in that 
    area. If an additional party is allowed to obtain a license in an 
    existing licensee's BTA, the Commission proposes to require them to 
    coordinate informally on a link-to-link basis.
        5. The Commission also proposes to amend the licensing and 
    technical rules for fixed point-to-point microwave operations in the 39 
    GHz band. Specifically, the Commission proposes that the unlicensed 
    areas be licensed using BTA service areas and that auctions be employed 
    should mutually exclusive applications be filed. In order to 
    accommodate incumbent operations, the Commission proposes that 
    licensees of rectangular service areas be given eighteen months from 
    the adoption of a Report and Order in this proceeding to file with the 
    Commission a certification that they have constructed a minimum average 
    of four permanently installed and operating links per hundred square 
    kilometers (approximately one link per ten square miles) of their 
    licensed service area for each licensed channel block. Further, 
    licensees with more than one channel block must certify that each 
    channel block contains at least four permanently installed and 
    operating links per hundred square kilometers that cannot be 
    reaccommodated in another channel block. If a licensee meets these 
    threshold construction and filing requirements, then the licensee would 
    retain its entire rectangular service area. However, if a licensee does 
    not meet these requirements, then the license would be automatically 
    canceled nineteen months from the adoption of a Report and Order in 
    this proceeding. Further, licensees of rectangular service areas not 
    meeting the above construction threshold must file a list of 
    permanently installed and operating links that they wish to have 
    grandfathered no later than eighteen months from the adoption of a 
    Report and Order in this proceeding. The Commission would then 
    relicense qualifying links individually. Failure to file timely a list 
    of installed and operating links would result in automatic cancellation 
    of the respective licenses. As an alternative to relicensing incumbent 
    facilities on their current frequency, comment is solicited on whether 
    incumbent links should be ``repacked'' into a portion of the band, 
    e.g., most grandfathered links would be switched to one designated 
    channel pair provided that mutual interference would not result. The 
    technical rules for the 39 GHz band would be modified to make them 
    consistent with the technical rules that are proposed for the 37 GHz 
    band. Licensees would be limited to six of the 28 paired channel blocks 
    and to two of the four unpaired channel blocks in each BTA in the 
    combined 37-40 GHz band.
        6. The Commission notes that the lower portion of the 39 GHz band, 
    38.6-39.5 GHz, is allocated to the fixed, mobile, and fixed-satellite 
    (space-to-Earth) services and that the upper portion of the 39 GHz 
    band, 39.5-40 GHz, is allocated to these services and to the mobile-
    satellite (space-to-Earth) service. Comment is solicited on whether the 
    proposed modifications for licensing the 39 GHz band would have any 
    affect on the sharing of this band among these services. Further, 
    comment is solicited on whether the Commission should provide for more 
    flexible use of the 39 GHz band, including whether permissible uses 
    should be broadened to include point-to-multipoint and/or mobile 
    services in this band, perhaps under a broader service category such as 
    GWCS or LMWS.
        7. If competitive bidding is not adopted for the 39 GHz band, 
    comment is solicited alternatively on whether to license the 39 GHz 
    band under the current rules with certain modifications. Specifically, 
    the Commission proposes to strengthen and codify the policy guidance 
    given in the Commission's Common Carrier Bureau's Public Notice, Mimeo 
    No. 44787, released September, 1994, so that all applicants for 
    channels in the 39 GHz band would be required to make the following 
    showings:
    
        (i) Consideration of non-radiofrequency (non-RF) solutions. That 
    the applicant has given detailed consideration to non-RF solutions for 
    satisfying its communications requirements, including but not limited 
    to fiber optic cable and wireline, and explaining why such alternatives 
    are technically unacceptable, as opposed to merely less economically 
    preferable.
    
        (ii) Clear and present need. That the applicant has an immediate 
    and real need for the proposed communications. Neither speculation, nor 
    anticipated market development, nor a desire merely to hold a license 
    will be sufficient in this regard. Each narrative must include an 
    implementation schedule with six month benchmarks and will be required 
    to demonstrate system construction and operation within the 
    construction deadline imposed by Sec. 21.43 of the Rules. 
    
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        (iii) Frequency and efficiency. Normally, only one channel block 
    will be authorized per applicant per geographic area. New assignments 
    will be licensed by BTAs. Current applicants must modify their 
    applications accordingly. A future request for an additional channel 
    block will be considered only if the applicant demonstrates that:
         An immediate requirement exists for simultaneous 
    communications within the licensed service area;
         Frequency re-use is impossible as demonstrated by an 
    engineering showing;
         All previously authorized channel blocks within the 
    licensed service area are constructed, are operational, and are loaded 
    to 100% capacity;
         All frequencies are loaded to a minimum equivalent digital 
    efficiency of 1 bps/Hz;
         All transmitting equipment is operating with a frequency 
    tolerance of 0.001%; and
         Only Category A antennas are employed.
    
        (iv) Full disclosure. Applicants must fully disclose the real party 
    (or parties) in interest, including a complete disclosure of the 
    identity and relationship of those persons or entities directly or 
    indirectly owning and/or controlling the applicant. In addition, 
    licensees must construct their facilities and must be passing 
    communications traffic on all of assigned channel blocks throughout 
    their licensed service areas by the end of the eighteenth month since 
    initial license grant. An extension to the 18 month period of 
    construction will not generally be granted. If construction is not 
    timely completed, the licensee's authority to construct additional 
    links will be automatically cancelled and forfeited, and the licensee 
    must notify the Commission as to which links have been constructed so 
    that those links may be grandfathered.
        8. For both the 37 GHz and 39 GHz bands, the Commission proposes 
    the following procedure for establishing eligibility to bid at auction. 
    The Commission proposes open eligibility and does not intend to require 
    that applicants prove that they are financially qualified. Applicants 
    must file a ``short form,'' i.e., FCC form 175, by a date specified in 
    the applicable initial public notice. The short forms would be reviewed 
    for compliance with the Commission's rules. Timely-filed applications 
    would be classified as either accepted for filing or incomplete and 
    this result would be announced by public notice. Ex parte rules would 
    be waived as they apply to the submission of amended short-form 
    applications. Applicants would not be permitted to make any major 
    modifications to their applications until after the auction. Applicants 
    could modify their short-form applications to reflect the formation of 
    consortia or changes in ownership at any time before or during the 
    auction, provided such changes would not result in a change in control 
    of the applicant, and provided that parties forming consortia or 
    entering into ownership agreements have not applied for licenses in any 
    of the same geographic license areas. Applications that are not signed 
    would be dismissed as unacceptable. Incomplete applications must be 
    resubmitted by the resubmission deadline to correct minor deficiencies. 
    Late-filed applications would be dismissed without the opportunity to 
    resubmit. If mutually exclusive applications are not filed for a 
    license, then the Commission would by public notice cancel the auction 
    for that license and establish a date for the filing of a ``long-form 
    application,'' i.e., FCC Form 600. Applicants whose application for 
    filing is ultimately approved will tender in advance to the Commission 
    an upfront payment of $2,500 or $0.02 per pop per MHz, whichever is 
    greater. Upfront payments generally will be due no later than 14 days 
    before the scheduled auction.
        9. The design of the auction process for both the 37 GHz and the 39 
    GHz bands is proposed to be simultaneous multiple round auctions. The 
    minimum bid increments and stopping rules will be specified by public 
    notice prior to the auction. The Milgrom-Wilson activity rule is 
    tentatively proposed, but an alternative activity rule may be used 
    instead and, if so, would be announced by public notice prior to the 
    start of the auction. The duration of bidding rounds would either be 
    announced by public notice prior to the auction or by announcement 
    during the auction. A down payment of 20 percent must be submitted by a 
    date to be specified by public notice, generally within 5 business days 
    following the close of bidding. All auction winners generally would be 
    required to make full payment of the balance of their winning bids with 
    5 business days following public notice that the license is ready for 
    grant. Any bidder who withdraws a high bid during an auction before the 
    Commission declares the bidding closed, or defaults by failing to remit 
    the required down payment within the prescribed time, would be required 
    to reimburse the U.S. Treasury in the amount of the difference between 
    its high bid and the amount of the winning bid the next time the 
    license is offered by the Commission, if the subsequent winning bid is 
    lower. After bidding closes, a defaulting auction winner would be 
    assessed an additional payment of 3 percent of the subsequent winning 
    bid or 3 percent of the amount of the defaulting bid, whichever is 
    less. The Commission proposes to apply the transfer disclosure 
    requirements contained in Section 1.2111(a).
        10. The Commission proposes the following provisions for designated 
    entities. A small business is defined as entities with less than $40 
    million in average annual gross revenues for the preceding 3 years. 
    Further, the same affiliation and attribution rules for calculating 
    revenues that were adopted in the broadband PCS and GWCS proceedings 
    are also proposed for this service. A 10 percent bidding credit for 
    small businesses is proposed and the bidding credit can be applied to 
    any and all of the 37 and 39 GHz licenses. Small business licensees may 
    elect to pay their winning bid amount (less upfront payments) in 
    installments over 10 years, with interest charges to be fixed at the 
    time of licensing at a rate equal to the rate for ten year U.S. 
    Treasury obligations plus 2.5 percent. Installment payments would be 
    due on the anniversary of the day the license was granted. Timely 
    payment of all installments would be a condition of the license grant 
    and failure to make such timely payments would be grounds for 
    revocation of the license. Small business licensees will be permitted 
    to make interest-only installment payments during the first two years 
    of the license. The down payment for small businesses is proposed to be 
    5 percent of the winning bid due five days after the auction and 5 
    percent due five days after the public notice that the license is ready 
    for grant. Comment is sought on the appropriate transfer restrictions 
    for small businesses and on the proposal not to adopt an entrepreneurs' 
    block.
        11. In addition, the Commission proposes that rural telephone 
    companies be permitted to partition BTAs. Rural telephone companies are 
    defined as local exchange carriers having 100,000 or fewer access 
    lines, including all affiliates. Rural telephone companies would be 
    permitted to acquire partitioned licenses in either of two ways: (1) 
    they may form bidding consortia consisting entirely of rural telephone 
    companies to participate in the auctions, and then partition the 
    licenses won among consortia participants; and (2) they may acquire 
    partitioned licenses from other licenses through private negotiation 
    and agreement either before or after the 
    
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    auction. The partitioned areas must conform to established geopolitical 
    boundaries and each area must include all portions of the wireline 
    service area of the rural telephone company applicant that lies within 
    the service area.
        12. The application processing rules contained in Parts 21 and 94 
    would be used for the 37 GHz service (as well as the 39 GHz service). 
    Auction winners will be required to file a long form by a specific 
    date, generally within 10 business days after the close of the auction. 
    If the winning bidder intends to provide a common carrier service it 
    would file FCC Form 494, and if it intends to provide a private use it 
    would file FCC Form 402. After the Commission receives the winning 
    bidder's down payment and the long-form application, the long-form 
    application would be reviewed to determine if it is acceptable for 
    filing. Upon acceptance for filing of FCC Form 494, a Public Notice 
    announcing this fact would be released, triggering the filing window 
    for petitions to deny. If the Commission denies all petitions to deny, 
    and is otherwise satisfied that the applicant is qualified, a Public 
    Notice announcing the grants will be issued. Winning bidders would have 
    five business days after the issuance of the Public Notice to complete 
    payment of their licenses. The Commission would then have ten business 
    days to grant the licenses.
    
    List of Subjects
    
    47 CFR Part 1
    
        Administrative practice and procedure, Radio.
    
    47 CFR Part 2
    
        Radio.
    
    47 CFR Part 21
    
        Communications common carriers, Communications equipment, Radio.
    
    47 CFR Part 94
    
        Communications equipment, Radio, Reporting and recordkeeping 
    requirements.
    
    Federal Communications Commission.
    William F. Caton,
    Acting Secretary.
    [FR Doc. 96-1247 Filed 1-25-96; 8:45 am]
    BILLING CODE 6712-01-P