[Federal Register Volume 63, Number 220 (Monday, November 16, 1998)]
[Rules and Regulations]
[Pages 63612-63613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30551]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 1 and 24
[WT Docket No. 97-82; FCC 98-290]
Extension of the Commission's Initial Non-Delinquency Period for
C and F Block Installment Payments
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: This Order denies the requests of several licensees seeking a
waiver of the October 29, 1998, deadline for late installment payments
on their licenses. On July 31, 1998, broadband PCS C and F block
licensees were required to resume making installment payments on their
licenses. However, in accordance with an earlier ruling, licensees that
failed to meet the July 31, 1998, deadline were allowed to submit their
payment on or before October 29, 1998, without being considered
delinquent, if they paid a 5 percent late payment fee.
EFFECTIVE DATE: October 29, 1998.
FOR FURTHER INFORMATION CONTACT: Julie Buchanan at (202) 418-0660
Auctions and Industry Analysis Division, Wireless Telecommunications
Bureau.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission Order,
WT Docket No. 97-82, FCC 98-290, adopted and released on October 29,
1998. The full text of this Order is available for inspection and
copying during normal business hours in the FCC Dockets Branch, 445
Twelfth Street, S.W., Washington, D.C. 20554. The complete text may be
purchased from the Commission's copy contractor, International
Transcription Service, Inc., 1231 20th Street, N.W., Washington, D.C.
20036. (202) 857-3800.
Synopsis
1. On July 31, 1998, broadband PCS C and F block licensees were
required to resume making installment payments on their licenses.
However, in accordance with the Order on Reconsideration of the Second
Report and Order, 63 FR 17111 (April 8, 1998) (``Reconsideration
Order''), licensees that failed to meet the July 31, 1998,
[[Page 63613]]
deadline may submit their payment on or before October 29, 1998,
without being considered delinquent, if they pay a 5 percent late
payment fee. Several licensees have filed requests seeking a waiver of
the October 29, 1998, deadline for late payments. For the reasons
stated below, the Commission denies these requests.
2. A licensee asked the Commission to suspend its installment
payment for 12 months. It claimed that, without a waiver of the
Commission's rules, its inability to fulfill both its obligation to the
Commission and its obligation to its principal creditor would threaten
the provision of service to its customers and the expansion of its
system. Another licensee argued that, due to the collapse of financial
markets after the issuance of the Reconsideration Order, the Commission
should extend the non-delinquency period another 180 days. In addition,
another petitioner sought an extension until January 31, 1999, for the
resumption of its installment and accrued interest payment obligations.
It asserts that it needs more time to finalize negotiations for capital
placement in light of recently discovered problems with its original
capitalization plan. Another petitioner requested relief through
December 31, 1998, in order to allow it time to receive anticipated
funding. Funding delays also caused another licensee to seek an
extension until December 13, 1998, or whatever time period the
Commission provides to other C block licensees that also are seeking
waivers. Finally, another licensee asked for a two-week grace period to
accommodate last-minute delays with a needed stock subscription.
3. The Commission declines to waive the October 29, 1998, late
payment deadline in response to the individual situations presented. In
order for a waiver of the PCS rules to be granted, one of two tests
must be met. Pursuant to Sec. 24.819 of the Commission's Rules, the
entity requesting a waiver must demonstrate either that: (1) ``the
underlying purpose of the rule will not be served, or would be
frustrated, by its application in a particular case, and that grant of
the waiver is otherwise in the public interest'' or (2) ``the unique
facts and circumstances of a particular case render application of the
rule inequitable, unduly burdensome or otherwise contrary to the public
interest.''
4. Although the specific concerns raised by each petitioner vary,
all revolve around the same theme--the inability to raise capital. The
challenge of raising capital to finance C and F block licenses exists
in varying degrees for all licensees and does not constitute ``unique
facts and circumstances.'' In formulating, as well as reconsidering,
the restructuring options, the Commission addressed the challenges of
raising capital. Further, the Commission does not believe that the
underlying purpose of its rules would be frustrated by their
application here or that it would serve the public interest to delay
their enforcement. As the Commission stated in the Reconsideration
Order, ``[n]o matter what deadline we establish, it is inevitable that
some licensees will seek more time to pay.''
5. Although the Commission is sympathetic to the difficulties
certain licensees are facing in securing capital, the Commission made
it clear that it ``will not entertain any requests for an extension''
beyond the 60-day non-delinquency period that originally was
established for initial payments not submitted by the payment
resumption date for C and F block licensees. Further, the Commission
ratified a firm deadline for late payments in the Reconsideration
Order. Despite the fact that its rules, as amended effective March 16,
1996, allow an automatic grace period for installment payments not made
within a non-delinquency period, the Commission determined that such a
grace period is not appropriate for the initial July 31 payment. First,
licensees have already enjoyed a payment suspension since the spring of
1997. Second, in the Reconsideration Order, the Commission provided
additional relief by extending to 90 days the original 60-day non-
delinquency period for initial payments. A further extension of the
non-delinquency period would only serve to undermine the Commission's
enforcement of its payment deadlines. Therefore, licensees that failed
to make payment by July 31, 1998, and fail to make full payment by
October 29, 1998, including the 5 percent late payment fee, will be
subject to the automatic cancellation of their licenses.
6. Accordingly, it is ordered that, pursuant to Sections 4(i),
303(r), and 309(j) of the Communications Act of 1934, as amended, 47
U.S.C. Secs. 154(i), 303(r), and 309(j), the requests filed for a
waiver of the October 29, 1998, late payment deadline for C and F block
licensees are denied and the waiver request filed seeking an extension
until January 31, 1999 for the resumption of installment and accrued
interest payment obligations is dismissed as moot.
List of Subjects
47 CFR Part 1
Administrative practice and procedure.
47 CFR Part 24
Personal communications services.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 98-30551 Filed 11-13-98; 8:45 am]
BILLING CODE 6712-01-P
