[Federal Register Volume 59, Number 39 (Monday, February 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4407]
[Federal Register: February 28, 1994]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 99
[GEN Docket No. 90-314; FCC 93-550]
Establishment of New Personal Communications Services
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: By this Third Report and Order, the Commission makes final
decisions on 50 pioneer's preference requests related to broadband 2
GHz Personal Communications Services (PCS). The Commission awards
pioneer's preferences to three applicants and denies the remaining 47
requests. This action guarantees a license to each pioneer in 30
megahertz of spectrum in a Major Trading Area (MTA) if the applicant is
otherwise eligible to hold such a license and subject to any changes
upon reconsideration in GEN Docket No. 90-314 that affect service areas
or spectrum blocks. The action is intended to appropriately reward the
three parties that pioneered new PCS services and technologies.
EFFECTIVE DATE: February 28, 1994.
FOR FURTHER INFORMATION CONTACT: Rodney Small, Office of Engineering
and Technology, (202) 653-8116.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Third
Report and Order adopted December 23, 1993, and released February 3,
1994. This action will not change the public reporting burden. The full
text of this Commission decision is available for inspection and
copying during regular business hours in the FCC Reference Center (room
239), 1919 M Street, NW., Washington, DC 20554. The complete text of
the decision also may be purchased from the Commission's duplication
contractor, International Transcription Service, (202) 857-3800, 2100 M
Street, NW., Washington, DC 20037.
Summary of Third Report and Order
1. In the Tentative Decision and Memorandum Opinion and Order
(Tentative Decision) (57 FR 57458, December 4, 1992) in this
proceeding, the Commission proposed to award pioneer's preferences to
American Personal Communications (APC), Cox Enterprises, Inc. (Cox),
and Omnipoint Communications, Inc. (Omnipoint) and to deny 53 other
requests. Subsequently, in the First Report and Order (58 FR 42681,
August 11, 1993) in GEN Docket No. 90-314 and ET Docket No. 92-100, six
of these 53 requests were found to address 900 MHz narrowband services
and therefore final action on these six was taken in that proceeding.
The Commission adopted final rules for broadband 2 GHz PCS in the
Second Report and Order (58 FR 59174, November 8, 1993) in this
proceeding. Seven blocks of spectrum were allocated for licensed 2 GHz
PCS encompassing 120 megahertz at 1850-1890, 1930-1970, 2130-2150, and
2180-2200 MHz. Regional and local PCS service areas based upon MTAs and
Basic Trading Areas (BTAs) also were adopted.
2. The Commission's pioneer's preference rules provide preferential
treatment in its licensing process to parties that demonstrate their
responsibility for developing new communications services and
technologies. To be granted a pioneer's preference, an applicant must
demonstrate that it has developed the new service or technology; e.g.,
that it has developed the capabilities or possibilities of the
technology or service or has brought them to a more advanced or
effective state. The applicant also must demonstrate the technical
feasibility of the new service or technology, either by submitting a
technical feasibility showing or at least preliminary results of an
experiment. Finally, a preference will be granted only if the rules
adopted are a reasonable outgrowth of the proposal and lend themselves
to grant of a preference. An applicant meeting this standard will be
placed on a pioneer's preference track, will not be subject to
competing applications, and if otherwise qualified will receive a
license. Other applicants will compete for additional licenses on a
separate track. The pioneer's preference rules are intended to foster
development of new services and improve existing services by reducing
the delays and risks innovators otherwise would face with the
Commission's licensing process.
3. In the Tentative Decision, the Commission proposed to grant APC,
Cox, and Omnipoint a pioneer's preference and to deny 53 requests that
is tentatively concluded did not merit preferences. After opportunity
for additional comment and replies focused on the Tentative Decision,
the Commission found that APC, Cox, and Omnipoint meet the pioneer's
preference standard and therefore merit award of preferences; and that
the remaining applicants do not meet this standard and therefore do not
merit award of preferences.
4. APC was granted a pioneer's preference for its development and
demonstration of technologies that facilitate spectrum sharing by PCS
facilities and microwave systems at 2 GHz. APC's analysis and testing
demonstrated that there exists unused spectrum in the 1850-1990 MHz
band sufficient to allow immediate initiation of PCS services without
first having to relocate existing microwave operations. Its study
changed the focus of attention from relocating fixed microwave
operations before initiating PCS to initially implementing PCS while
sharing the spectrum with the existing microwave operations. This
study, and the transition plan presented in comments submitted by APC,
have elements in common with the transition plan adopted in ET Docket
No. 92-9 to facilitate making 2 GHz spectrum available for emerging
technologies, including PCS. Further, APC developed Frequency Agile
Sharing Technology (FAST) and demonstrated that it provides a practical
means to transition from fixed services to shared fixed and mobile
services in this spectrum.
5. As explained by APC, FAST is a frequency planning and management
tool used to predict (and avoid) interference both between private
operational fixed service (POFS) and PCS systems, and within a PCS
system. The FAST system utilizes theoretical interference analyses
verified by signal strength measurements to determine frequency
assignments to PCS base stations. This function is accomplished by a
Channel Utilization Controller (CUC), which monitors and determines the
channels each PCS base station may use. The CUC monitors coverage and
interference; analyzes and integrates measured data; integrates
supporting data bases; and supports data communications links to each
PCS base station. For each PCS base station the CUC calculates
theoretical interference values and areas for every POFS station in its
data base. Both PCS-to-POFS and POFS-to-PCS interference is calculated.
The CUC then compiles a list of available channels for each base
station. The theoretical interference analysis is recalculated when PCS
and/or POFS systems are changed.
6. APC states that FAST technology can be used with any relatively
narrow band PCS system channel architecture employing a channel
bandwidth of 5 megahertz or less. In particular, APC states that the
FAST system can be used in conjunction with code division multiple
access (CDMA), time division multiple access, time division duplexed,
and frequency division duplexed systems that use various transmit-
receive frequency separations. APC asserts that testing of its FAST/
CDMA system verified the ability of its technology to complete PCS
calls without causing interference to existing microwave operations.
7. Cox was granted a preference for having developed and
demonstrated PCS/cable plant interface technology and equipment that
interfaces existing cable plant with new PCS wireless applications,
resulting in spectrum-efficient applications for PCS. Cox first
proposed using cable systems to provide backbone functions for PCS
(instead of using the existing telephone or fixed microwave networks),
applied to the Commission for a PCS experimental license, and
successfully developed and tested equipment. Through experiments, Cox
demonstrated cost-effective integration of PCS and cable networks that
makes more efficient use of existing cable plant without impairing
existing cable services. Cox designed, developed, and tested multi-
backhaul configurations and multi-PCS radio systems with hand-off
capability, centralized modulation, and distributed antenna
configurations. These capabilities were realized through its design and
development work, the key to which is its ``cable microcell
integrator'' that Cox developed to connect PCS handsets to its embedded
cable plant.
8. Using the existing cable plant in PCS network design permits
economical and rapid deployment of PCS systems and substitution of
existing infrastructure for increasingly scarce spectrum. The efforts
of Cox advanced PCS system design by demonstrating the feasibility of
integrating cable networks with full-featured PCS systems. Its
developments potentially permit offering efficient PCS service in a
timely, cost efficient manner with no impairment to existing cable
services.
9. Omnipoint was granted a preference for its development of 2 GHz
equipment that uses advanced techniques that will facilitate continued
development and implementation of PCS services and technologies.
Omnipoint was the first to produce practical, working 2 GHz equipment
for PCS. It engaged in radio frequency engineering and related spread
spectrum product design, development, miniaturization, and manufacture
of 2 GHz equipment.
10. Omnipoint designed and manufactured equipment that uses direct
sequence spread spectrum access techniques in a 5 or 10 megahertz
channel. The original work of Omnipoint contributed significantly to
the development and testing of PCS services and design concepts that
will facilitate initial implementation of PCS in the 2 GHz band on a
sharing basis with fixed microwave licensees. Omnipoint has
demonstrated that its 2 GHz PCS equipment uses innovative technology,
combining spread spectrum and time division techniques. Further,
Omnipoint has demonstrated the capability of providing PCS service
using its equipment. Finally, the use of Omnipoint's handsets by other
parties to develop PCS experimental systems has fostered the
development of PCS.
11. By receiving a pioneer's preference, APC, Cox, and Omnipoint,
if otherwise qualified, will not be subject to competing license
applications in Channel Block A, a 30 megahertz MTA in the 1850-1865
and 1930-1945 MHz bands. APC, Cox, and Omnipoint argued that a 30
megahertz MTA grant was necessary to permit implementation of the
systems they proposed.
12. Cablevision Systems Corporation (Cablevision), Southwestern
Bell Corporation (SBC), and Fidelity Investments and Cylink Corporation
(Fidelity/Cylink) disagreed that a 30 megahertz MTA license should be
awarded pioneers. Cablevision contended that a 20 megahertz BTA block
would permit the grantees to use the band in which they have conducted
experiments, while not conveying a windfall 30 megahertz MTA block that
could have a preclusive effect on other licensees. SBC concurred,
stating that a 20 megahertz BTA block would be enough spectrum to
provide adequate PCS service. Fidelity/Cylink argued that a 10
megahertz BTA block at 2130-2200 MHz would be adequate because such a
block would enable the provision of full-featured PCS, as well as many
specialized PCS services.
13. The Commission found the arguments of APC, Cox, and Omnipoint
persuasive. Each applicant conducted experiments in the 1850-1990 MHz
band, not in the 2130-2200 MHz band. An award in the lower band is
appropriate to ensure that the grantees can implement the services they
have proposed. While the Commission continues to believe that the upper
band has the potential to provide a variety of important PCS services,
APC, Cox, and Omnipoint have designed their systems and conducted their
experiments in the 1850-1990 MHz band. Further, the Commission is not
convinced that a 20 megahertz BTA grant would be adequate, given the
nature of the systems proposed. Accordingly, the Commission awarded
each pioneer a 30 megahertz MTA block in the service area each
requested.
14. The Commission instructed the licensing bureau to condition
licenses issued as a result of these pioneer's preference grants upon
construction of PCS systems that substantially use the design and
technologies upon which the preference awards are based and upon each
licensee holding its license for a minimum of three years or until the
construction requirements applicable to the five-year build-out period
specified in Section 99.206 of the Commission's Rules have been
satisfied, whichever, is earlier. APC's service area is the MTA that
includes Washington, DC and Baltimore, Maryland; Cox's service area is
the MTA that includes San Diego, California; and Omnipoint's service
area is the MTA that includes northern New Jersey. The Commission noted
that both PCS channel blocks and service areas are the subject of
petitions for reconsideration and clarification. Should either PCS
channel blocks or service areas be amended on reconsideration, the
pioneer's preferences will be modified accordingly.
15. Finally, the Commission stated that the 47 pioneer's preference
requests that were found not to have met the pioneer's preference
standard were denied for a variety of reasons. Some of these requests
were incompatible with the rules adopted in the Second Report and Order
in this proceeding, some did not demonstrate the feasibility of the
proposed technologies, some did not demonstrate innovation, and some
did not demonstrate the capabilities or possibilities of specific
identifiable PCS technologies or services or show how these
technologies or services had been brought to a more advanced or
effective state.
16. Accordingly, it is ordered that the requests for pioneer's
preference filed by American Personal Communications; Cox Enterprises,
Inc.; and Omnipoint Communications, Inc. are granted. It is further
ordered That the relevant licensing bureau shall impose the following
conditions on the licenses received by American Personal
Communications; Cox Enterprises, Inc.; and Omnipoint Communications,
Inc. pursuant to their pioneer's preference awards: (1) Each licensee
must build a system that substantially uses the design and technologies
upon which its preference award is based; and (2) Each licensee must
hold its license for a minimum of three years or until the construction
requirements applicable to the five-year build-out period specified in
Section 99.206 of the Commission's Rules have been satisfied, whichever
is earlier. It is further ordered That the requests for pioneer's
preference filed by Adelphia Communications Corp.; Advanced MobileComm
Technologies, Inc. and Digital Spread Spectrum Technologies, Inc.;
American Portable Telecommunications, Inc.; American Telephone and
Telegraph; American TeleZone; Ameritech; Associated PCN Corporation;
Atlantic Cellular Company, L.P.; Bell Atlantic Personal Communications,
Inc.; Broadband Communications Corporation; Cable USA, Inc.;
Cablevision Systems Corporation; Cellular Service, Inc.; Comcast PCS
Communications, Inc.; Corporate Technology Partners; Freeman
Engineering Associates; Grand Broadcasting Corporation; Iowa Network
Services, Inc.; Linkatel Communications, Inc.; LiTel Telecommunications
Corporation; Nextel Communications, Inc.; Omnipoint Corporation, Oracle
Data Publishing, Inc.; and McCaw Cellular Communications, Inc.;
Omnipoint Mobile Data Company; Pacific Bell; PacTel Corporation;
PageMart, Inc.; Panhandle Telephone Cooperative, Inc.; PCN America,
Inc.; PCN Communications, Inc.; PerTel, Inc.; Personal Communications
Network Services of New York; Pulson Communications Corporation;
Qualcomm Incorporated; Satcom, Inc.; Sharecom-Austin, L.P.; SM Tek,
Inc.; Southwestern Bell Personal Communications, Inc.; Spatial
Communications; Suite 12 Group; Tele-Communications, Inc.; Tel/Logic
Inc.; Telmarc Telecommunications; Time Warner Telecommunications, Inc.;
TRX Transportation Telephone Co.; US West NewVector Group, Inc.;
Vanguard Cellular Systems, Inc.; and Viacom International, Inc. are
denied.
List of Subjects in 47 CFR Part 99
Personal Communications Services, Radio.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 94-4407 Filed 2-25-94; 8:45 am]
BILLING CODE 6712-01-M
