[Federal Register Volume 62, Number 48 (Wednesday, March 12, 1997)]
[Proposed Rules]
[Pages 11638-11643]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6091]
Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 /
Proposed Rules
[[Page 11638]]
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 22 and 90
[WT Docket No. 96-18; PP Docket No. 93-253; FCC 97-59]
Facilitate Future Development of Paging Systems and
Implementation of Section 309(j) of the Communications Act--Competitive
Bidding
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: In this Further Notice of Proposed Rulemaking (FNPRM), in WT
Docket No. 96-18 and PP Docket No. 93-253, the Commission seeks comment
on coverage requirements for nationwide geographic area licenses,
partitioning and disaggregation for geographic area paging licenses
(including nationwide licenses), and the application procedure for the
shared channels. The Commission seeks to eliminate or reduce paging
license application fraud by providing applicants with information
about the risks of telecommunications investment and the warning signs
of possible investment fraud. The Commission's objective is to provide
paging licensees the flexibility they need to tailor their service
offerings to meet market demands and facilitate greater participation
by small businesses.
DATES: Comments must be filed on or before April 17, 1997. Reply
comments are to be filed on or before May 1, 1997.
ADDRESSES: Federal Communications Commission, 1919 M Street, NW.,
Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT: Mika Savir, Commercial Wireless
Division, Wireless Telecommunications Bureau, at (202) 418-0620, or
Frank Stilwell, Auctions Division, Wireless Telecommunications Bureau,
at (202) 418-0660.
SUPPLEMENTARY INFORMATION: This Further Notice of Proposed Rulemaking
in WT Docket No. 96-18 and PP Docket No. 93-253, adopted on February
19, 1997 and released on February 24, 1997, is available for inspection
and copying during normal business hours in the FCC Reference Center,
Room 239, 1919 M Street, NW., Washington, DC 20554. The complete text
may also be purchased from the Commission's copy contractor,
International Transcription Service, Inc., 2100 M Street, NW., Suite
140, Washington, DC 20037, (202) 857-3800.
Synopsis of the Further Notice of Proposed Rulemaking
I. Background
1. In the Second Report and Order in WT Docket No. 96-18, the
Commission adopted rules governing geographic area licensing for paging
licenses and competitive bidding procedures for auctioning mutually
exclusive applications for these licenses. Further comment is needed on
several issues such as coverage requirements for nationwide geographic
area licenses, partitioning and disaggregation for geographic area
licenses, and possible modifications to the application procedure for
shared channels.
II. Further Notice of Proposed Rulemaking
A. Nationwide Channels
2. In the Second Report and Order in WT Docket No. 96-18, the
Commission concluded that the three nationwide 931 MHz channels and
twenty-three 929 MHz PCP nationwide channels will not be subject to
competitive bidding. The Commission did not impose coverage
requirements on the nationwide geographic area paging licenses. The
Major Trading Area (MTA) and Economic Area (EA) geographic area
licensees, which are not exempt from competitive bidding, are required
to provide coverage to one-third of the geographic area population
within three years of license grant, and to two-thirds of the
geographic area population within five years of license grant. In the
alternative, the MTA or EA licensee may provide substantial service to
the geographic area within five years of license grant. In this Further
Notice of Proposed Rulemaking (FNPRM), the Commission seeks comment on
whether coverage requirements should be imposed on nationwide licenses,
and the appropriate coverage area. The Commission seeks comment on
whether the entire nationwide license, or just a portion of the
license, should be auctioned if the nationwide licensee fails to meet
the coverage requirements.
B. Partitioning and Disaggregation
1. Partitioning
a. In General
In the Second Report and Order, the Commission adopted geographic
partitioning provisions for MTA and EA geographic area paging
licensees. In this FNPRM, the Commission seeks comment on whether
nationwide paging licensees should be permitted to partition their
license area. Commenters should note that the three 931 MHz nationwide
channels and twenty-three 929 MHz nationwide channels are not subject
to competitive bidding, whereas the MTA and EA geographic area licenses
are subject to competitive bidding.
4. The Commission believes that partitioning can be an effective
means of providing paging licensees with the flexibility they need to
tailor their service offerings to meet market demands. Partitioning may
be used to create smaller licenses and thus also facilitate greater
participation by small businesses and rural telephone companies. The
Commission did not, however, seek comment in the NPRM in WT Docket No.
96-18 on the treatment of MTA and EA geographic area paging licensees
that receive competitive bidding benefits, the license term of
partitioned licenses, or build-out requirements. The Commission seeks
comment on these issues with respect to geographic area paging
licenses.
b. Licensees With Competitive Bidding Benefits
5. Providing licensees with the flexibility to partition their
geographic service areas will create smaller areas that can be licensed
to small businesses, including those entities without the resources to
participate successfully in spectrum auctions. The competitive bidding
rules for paging include provisions for installment payments and
bidding credits for small businesses. The Commission has also adopted
rules to prevent unjust enrichment by small businesses seeking to
transfer licenses obtained with installment payments or bidding
credits. The Commission seeks comment on how to adjust installment
payments owed by partitioning licensees. Parties are invited to comment
on whether a small business partitioner should be required to repay, on
an accelerated basis, a portion of the outstanding principal balance
owed under an installment payment plan. The Commission seeks comment on
how this payment should be calculated. The Commission seeks comment on
whether the partitionee should be required to guarantee payment of a
portion of the partitioner's obligation.
6. The Commission tentatively concludes that partitionees that
would qualify as small businesses should be permitted to pay their pro
rata share of the remaining government obligation through installment
payments. The Commission seeks comment on this tentative conclusion.
Commenters should address the mechanisms for apportioning the remaining
government obligation between the parties. The Commission proposes
using population as the objective measure to calculate the
[[Page 11639]]
relative value of the partitioned area, and seeks comment on this
proposal.
7. The Commission proposes applying unjust enrichment rules to
small businesses that partition to non-small businesses or to small
businesses qualifying for a lower bidding credit. The Commission seeks
comment on this proposal. These unjust enrichment provisions would
include accelerated payment of bidding credits, unpaid principal, and
accrued unpaid interest. The Commission seeks comment on how such
unjust enrichment amounts should be calculated. Commenters should
address how to calculate unjust enrichment amounts and how to enforce
unjust enrichment payments. The Commission seeks comment on whether the
price paid by the partitionee should be considered in determining the
percentage of the outstanding principal balance to be repaid.
Commenters should address whether the unjust enrichment payments should
be calculated on a proportional basis, using population of the
partitioned area as the objective measure.
8. The Commission seeks comment on whether each party to a
partitioning transfer should be required to guarantee all or a portion
of the partitioner's original auctions-related obligation in the event
of default or bankruptcy by any of the parties to the partitioning
transfer. The Commission seeks comment on whether the partitioner (the
original licensee) should continue to be responsible, with respect to
the auctions-related obligation, for the entire initial geographic
area.
c. Build-out requirements
9. In the Second Report and Order, the Commission adopted coverage
requirements for MTA and EA geographic area licensees. Specifically,
each MTA or EA geographic area licensee must provide coverage to one-
third of the geographic area population within three years of the
license grant, and to two-thirds of the geographic area population
within five years of the license grant. In the alternative, the MTA or
EA licensee may provide substantial service to the geographic area
within five years of license grant. The Commission tentatively
concludes that both the partitioner and the partitionee should be
subject to coverage requirements that ensure that both portions of the
license area will receive service. The Commission proposes that a
partitionee will be obligated to satisfy the same build-out
requirements as the original licensee within its partitioned area,
regardless of when the license was acquired. A partitionee of an MTA or
EA would provide coverage to one-third of the population in its
partitioned area within three years of the license grant, and to two-
thirds of the population within its partitioned area within five years
of the license grant. In the alternative, the partitionee may provide
substantial service to the partitioned geographic area within five
years of license grant. Parties are invited to comment on this
proposal. Commenters should also address build-out requirements for
partitioned nationwide licenses. Commenters are also invited to address
what build-out requirements should apply where a licensee partitions a
portion of its license area after the initial ten-year license term has
expired.
d. License term
10. A geographic area paging licensee is authorized to provide
service for no more than ten years from the date of license grant. A
licensee may submit an application to renew the license for an
additional license term, and is afforded a renewal expectancy if it can
demonstrate that it has provided substantial service during the past
license term and has substantially complied with the applicable
Commission rules, policies, and the Communications Act. Substantial
service is service which is sound, favorable, and substantially above a
mediocre level of service which might just minimally warrant renewal.
11. The Commission proposes that a partitionee (including a
nationwide license partitionee) be authorized to hold its license for
the remainder of the partitioner's original ten-year term. The
Commission tentatively concludes that this approach is reasonable
because a partitioner-licensee should not be able to confer greater
rights than it was awarded under the terms of its license grant. The
Commission seeks comment on this tentative conclusion. The Commission
also proposes that a partitionee be afforded the same renewal
expectancy as a geographic area licensee. The Commission proposes to
grant a partitionee a preference at a renewal proceeding if it can
demonstrate that it has provided substantial service during its past
license term and has substantially complied with the applicable
Commission rules, policies, and the Communications Act. The Commission
seeks comment on these proposals.
2. Disaggregation
a. In General
12. In the NPRM, the Commission asked parties to comment on whether
paging spectrum disaggregation should be allowed. The Commission did
not receive sufficient comment on this issue to adopt disaggregation
for paging services. The Commission seeks further comment on the
feasibility of spectrum disaggregation for paging. Commenters should
provide technical justifications and other relevant support in
responding to this issue. Commenters should address whether minimum
disaggregation standards are necessary for paging services. Commenters
should also address whether nationwide licensees should be permitted to
disaggregate spectrum.
b. Licensees With Competitive Bidding Benefits
13. The Commission also seeks comment on what the respective
obligations of the participants in a disaggregation transfer should be,
and whether each party should be required to guarantee a proportionate
amount of the disaggregator's original auctions-related obligation in
the event of default or bankruptcy by any of the parties to the
disaggregation transfer. The Commission seeks comment on whether the
disaggregator (the original licensee) should have a continuing
obligation with respect to the entire initial license. Alternatively,
should the parties have available a choice of options, ranging from an
accelerated payment based on purchase price to a guarantee for a larger
payment by one party in the event another party defaults? Parties are
invited to comment on whether the disaggregating parties should be able
to determine which party has a continuing obligation with respect to
the original license area.
14. The Commission proposes to allow all small business licensees
to disaggregate to similarly qualifying parties as well as parties not
eligible for small business provisions. The Commission tentatively
concludes that if a qualified small business licensee is permitted to
disaggregate to a non-small business entity, the disaggregating
licensee should be required to repay any benefits it received from the
small business special provisions on a proportional basis. This would
include accelerated payment of bidding credits, unpaid principal, and
accrued unpaid interest. The Commission seeks comment on how such
repayment amounts should be calculated. The Commission also seeks
comment on whether we should consider the price paid by the
disaggregatee in determining the percentage of the outstanding
principal balance to be repaid.
15. The Commission tentatively concludes that if a small business
licensee is permitted to disaggregate to
[[Page 11640]]
another qualified small business that would not qualify for the same
level of bidding credit as the disaggregating licensee, the
disaggregating licensee should be required to repay a portion of the
benefit it received. The Commission seeks comment on how that amount
should be calculated. Finally, the Commission seeks comment on what
provisions, if any, should be adopted to address the situation of a
small business licensee's disaggregation followed by default in payment
of a winning bid at auction.
c. Build-Out Requirements
16. The Commission requires each MTA or EA geographic area licensee
to provide coverage to one-third of the geographic area population
within three years of the license grant, and to two-thirds of the
geographic area population within five years of the license grant. In
the alternative, the MTA or EA licensee may provide substantial service
to the geographic area within five years of license grant. The
Commission proposes adopting a flexible approach for construction
requirements on both the disaggregator and disaggregatee for their
respective spectrum portions. The Commission proposes that either the
disaggregator or the disaggregatee entering the geographic market
should be obligated to provide coverage to one-third of the population
within three years of the license grant, and to two-thirds of the
population within five years of the license grant. In the alternative,
either the disaggregator or the disaggregatee may provide substantial
service to the geographic area within five years of license grant. The
Commission seeks comment on this proposal. Commenters should also
address the appropriate build-out requirements for the parties to
disaggregation of nationwide paging licenses. The Commission proposes
that if a licensee fails to meet the construction requirements, the
license reverts back to the Commission. The Commission seeks comment on
this proposal.
d. License Term
17. The Commission proposes a similar license term for
disaggregation as for partitioning, i.e., a disaggregatee would be
authorized to hold its license for the remainder of the disaggregator's
original ten-year license term. The Commission proposes that a
disaggregatee would be afforded a renewal expectancy if it can
demonstrate that it has provided substantial service during the past
license term and has substantially complied with the applicable
Commission rules, policies, and the Communications Act. The Commission
seeks comment on these proposals, and on how to apply the renewal
standard in cases where the disaggregatee has acquired the
disaggregated license near the end of the license term.
3. Combination of Partitioning and Disaggregation
18. The Commission tentatively concludes that combinations of
partitioning and disaggregation should be permitted, subject to the
rules proposed for each. The Commission seeks comment on this proposal.
Commenters should address any conflicts in the partitioning and
disaggregation rules and whether the Commission should implement the
partitioning rules in such cases. Commenters should also address
whether the Commission should allow the combination of partitioning and
disaggregation for nationwide paging licenses.
C. Shared Channels
19. The issue of paging license application fraud was initially
raised in the comments filed by the Federal Trade Commission (FTC).
According to the FTC, telecommunications investment frauds are of two
basic types: (1) ``Application mills,'' where telemarketers sell
application preparation services for wireless licenses for thousands of
dollars to consumers, by claiming that telecommunications businesses
will seek to lease or sell the licenses for many times the
telemarketers' applications fees; and (2) ``build-out'' schemes, where
telemarketers sell, again for thousands of dollars, interests in
limited liability companies or partnerships that supposedly will
acquire wireless licenses, build and operate telecommunications
systems, and pay the consumers high dividends. The FTC argued that
awarding licenses on a geographic basis through competitive bidding
would likely reduce the incidence of ``application mills'' for paging
licenses. The FTC explained that awarding licenses on an unlimited,
shared basis is especially prone to abuse, because the constant
availability of such licenses allows telemarketers to guarantee
licenses to unsuspecting consumers. The transition of the exclusive
paging channels to geographic area licensing might make the shared
channels even more inviting to the fraudulent application mills. The
Commission seeks comment on how to eliminate or reduce this problem.
20. Specifically, the Commission seeks comment on how the current
FCC Form 600 application could be revised to provide applicants with
information regarding the risks of telecommunications investment and
warning signs of possible investment fraud. In addition, the Commission
seeks comment on whether application preparation services should be
required to sign the FCC Form 600, and to certify that the applicant
has received in writing pertinent information regarding the
Commission's rules and the obligations of licensees. Commenters are
also invited to address whether PCIA should be required to implement
additional procedures in the coordination process to reduce fraudulent
or speculative applications.
II. Conclusion
21. The Commission believes that the proposals in the FNPRM will
provide paging licensees the flexibility needed to tailor their service
offerings to meet market demands, and facilitate greater participation
by small businesses. Additionally, a revision to the application
process for shared channels to provide applicants with information
regarding the risks of telecommunications investment and the warning
signs of possible investment fraud may reduce fraudulent or speculative
applications.
III. Procedural Matters and Ordering Clauses
A. Regulatory Flexibility Act
Summary
22. As required by section 603 of the Regulatory Flexibility Act, 5
U.S.C. 603, the Commission has prepared an Initial Regulatory
Flexibility Analysis (IRFA) of the expected impact on small entities of
the policies and rules proposed in this FNPRM. Written public comments
on the IRFA are requested.
Reason for Action
23. This rulemaking proceeding in WT Docket No. 96-18 was initiated
to secure comment on proposals for establishing a regulatory scheme for
the common carrier paging (CCP) and private carrier paging (PCP)
services which would promote efficient licensing and competition in the
commercial mobile radio marketplace. The Commission seeks further
comment on several issues: whether nationwide licenses should be
subject to coverage requirements, how bidding credits and installment
payments should be treated in cases where small businesses wish to
partition their licenses, how build-out requirements and license term
are affected in cases of geographic partitioning by paging market area
[[Page 11641]]
licensees, whether spectrum disaggregation is feasible for paging
licensees, and revisions to the current FCC Form 600 and the
application procedures for licenses on the shared channels to reduce
paging application fraud.
Objectives
24. The Second Report and Order grants 26 nationwide geographic
area licenses to nationwide paging licensees, but does not impose any
additional coverage beyond what the nationwide licensees have already
achieved. In the FNPRM, the Commission seeks comment on whether
coverage requirements are appropriate.
25. In the Second Report and Order the Commission allows all
licensees, including small business licensees, to partition at any time
to another eligible entity. In the FNPRM the Commission proposes that
unjust enrichment provisions should apply when a small business
licensee has benefitted from the small business provisions in the
auction rules and then partitions a portion of the license area to
another entity that would not qualify for such benefits, or would
qualify for a lower bidding credit. Without the unjust enrichment
provisions on such transactions, a small business could benefit from
special bidding provisions and then become unjustly enriched by
immediately partitioning a portion of the license area to parties that
do not qualify for such benefits. The objective of this proposal is to
prevent unjust enrichment.
26. In the FNPRM the Commission seeks comment on build-out
requirements and license term for partitioned geographic area licenses
(including nationwide licenses). The Commission also seeks comment on
whether nationwide licensees should be permitted to partition their
license area, build-out requirements for partitioned nationwide
licenses, and the license term of partitioned nationwide licenses.
27. In the FNPRM the Commission seeks comment on whether spectrum
disaggregation would be feasible for paging, and how much spectrum a
paging licensee should be permitted to disaggregate. The Commission
seeks comment on build-out requirements and license term for
disaggregated geographic area licenses. If spectrum disaggregation is
feasible in paging it may facilitate the efficient use of spectrum,
increase competition, and expedite service to the public.
28. The Commission also seeks comment on paging application fraud,
an issue raised by the Federal Trade Commission. Specifically, the
Commission seeks comment on whether the current FCC Form 600 should be
revised to warn paging applicants of the risk of application fraud, and
whether application preparation services should be required to certify
that the applicant has received information regarding the Commission's
rules and the obligations of licensees. Additionally, commenters are
invited to address whether the frequency coordinator should implement
additional procedures to reduce fraudulent or speculative paging
applications. The objective of these proposals is to inform consumers
of the rules and the prevalence of paging application fraud and thus
reduce fraud and speculation.
Legal Basis
29. The proposed action is authorized under sections 4(i), 257,
303(r), and 309(j) of the Communications Act of 1934, as amended, 47
U.S.C. 154(i), 257, 303(r), and 309(j).
Reporting, Recordkeeping, and Other Compliance Requirements
30. Nationwide Channels. The proposals in the FNPRM include the
possibility of imposing reporting and recordkeeping requirements for
the nationwide geographic area licensees to establish compliance with
the coverage requirements, if coverage requirements are adopted.
31. Geographic Partitioning and Spectrum Disaggregation. The
proposals in the FNPRM include the possibility of imposing reporting
and recordkeeping requirements for small businesses seeking licenses
through the proposed partitioning and disaggregation rules. The
information requirements would be used to determine if the licensee is
a qualifying entity to obtain a partitioned license or disaggregated
spectrum. This information will be a one-time filing by any applicant
requesting such a license. The information will be submitted on the FCC
Forms 490 (or 430 and/or 600 filed as one package under cover of the
Form 490) which are currently in use and have already received OMB
clearance. The Commission estimates that the average burden on the
applicant is three hours for the information necessary to complete
these forms. The Commission estimates that 75 percent of the
respondents (which may include small businesses) will contract out the
burden of responding. The Commission estimates that it will take
approximately 30 minutes to coordinate information with those
contractors. The remaining 25 percent of respondents (which may include
small businesses) are estimated to employ in-house staff to provide the
information. Applicants (including small businesses) filing the package
under cover of FCC Form 490 electronically will incur a $2.30 per
minute on-line charge. On-line time would amount to no more than 30
minutes. The Commission estimates that 75 percent of the applicants may
file electronically. The Commission estimates that applicants
contracting out the information would use an attorney or engineer
(average of $200 per hour) to prepare the information.
32. It is also possible that small business partitioners and
disaggregators will be required to repay, on an accelerated basis, a
portion of the outstanding principal balance owed under an installment
payment plan. If unjust enrichment rules are applied to small
businesses that partition or disaggregate to non-small businesses, or
to small businesses qualifying for a lower bidding credit, small
businesses may be required to reimburse the United States government
for all or a portion of the special competitive bidding benefits they
have received. This could include accelerated payment of bidding
credits, unpaid principal, and accrued unpaid interest. It is also
possible that each party to a partitioning or disaggregation transfer
could be required to guarantee all or a portion of the partitioner's or
disaggregator's original auctions-related obligation in the event of
default or bankruptcy by any of the parties.
33. Shared Channels. The proposals in the FNPRM do not include the
possibility of imposing reporting and recordkeeping requirements for
small businesses seeking licenses for shared channels. The FNPRM seeks
comment on whether the current FCC Form 600 application should be
revised to warn applicants of the risk of application fraud; whether
application preparation services should be required to certify that the
applicant has received information regarding the Commission's rules;
and whether the frequency coordinator should be required to implement
additional procedures in the coordination process to reduce the
likelihood of fraudulent applications. These proposals would, if
implemented, furnish additional information to applicants. None of
these proposals would impose reporting or recordkeeping requirements on
small businesses.
Federal Rules Which Overlap, Duplicate or Conflict With These Rules
34. None.
Description and Number of Small Entities Involved
35. Nationwide Channels. The rule changes discussed in the FNPRM
with
[[Page 11642]]
respect to implementing coverage requirements for the 26 nationwide
licenses will probably not directly affect small businesses because
nationwide licensees are probably not small businesses. However, if all
26 nationwide licenses are held by small businesses, the rule change
would not affect more than 26 small businesses.
36. Geographic Partitioning and Spectrum Disaggregation. The
partitioning and disaggregation rule changes proposed in this
proceeding will affect all small businesses which avail themselves of
these rule changes, including small businesses currently holding paging
licenses who choose to partition and/or disaggregate and small
businesses who may acquire licenses through partitioning and/or
disaggregation.
37. The Commission is required to estimate in its Final Regulatory
Flexibility Analysis the number of small entities to which a rule will
apply, provide a description of such entities, and assess the impact of
the rule on such entities. To assist the Commission in this analysis,
commenters are requested to provide information regarding how many
total entities, existing and potential, would be affected by the
proposed rules in the FNPRM. In particular, the Commission seeks
estimates of how many such entities, existing and potential, will be
considered small businesses. The Small Business Administration (SBA)
has not developed a definition of small business specifically
applicable to paging. The closest applicable definition under the SBA
rules is radiotelephone (wireless) companies. According to the SBA's
definition, a small business radiotelephone company is one employing
fewer than 1,500 persons. The Commission seeks comment on whether this
definition is appropriate for paging licensees in this context.
Additionally, the Commission requests each commenter to identify
whether it is a small business under this definition. If a commenter is
a subsidiary of another entity, this information should be provided for
both the subsidiary and the parent corporation or entity.
38. The Commission estimates that up to approximately 50,000
licensees or potential licensees could take the opportunity to
partition and/or disaggregate a license or obtain a license through
partitioning and/or disaggregation. This number is based on the total
geographic area licenses to be awarded (approximately 16,600) and an
estimate that each license will probably not be partitioned and/or
disaggregated to more than three parties. Given the fact that nearly
all radiotelephone companies have fewer than 1,000 employees, and that
no reliable estimate of the number of future paging licensees can be
made, the Commission assumes for purposes of this IRFA that all of the
licenses will be awarded to small businesses. It is possible that a
significant number of the up to approximately 50,000 licensees or
potential licensees who could take the opportunity to partition and/or
disaggregate a license or who could obtain a license through
partitioning and/or disaggregation will be small businesses.
39. Shared Channels. The rule changes proposed in the FNPRM with
respect to warning prospective applicants about paging application
fraud would probably not have an impact on any small business or other
entity applying for a paging license on a shared channel. The proposed
changes to the paging license application are intended to warn
consumers about the prevalence of application fraud.
Significant Alternatives Minimizing the Impact on Small Entities
Consistent With the Stated Objectives
40. The Commission seeks comment on whether coverage requirements
should be imposed for the nationwide geographic area licensees. Any
significant alternatives presented in the comments will be considered.
Coverage requirements for the nationwide geographic area licensees, if
adopted, would probably not affect small businesses.
41. With respect to partitioning, the Commission seeks comment on
whether nationwide licensees should be permitted to partition their
license area, build-out requirements for partitioned nationwide
licenses, and license term of partitioned nationwide licenses. For MTA
and EA geographic area licenses, the Commission proposes that unjust
enrichment provisions should apply when a licensee has benefitted from
the small business provisions in the auction rules and partitions a
portion of the geographic license area to another entity that would not
qualify for such benefits. The alternative to applying the unjust
enrichment provisions would be to allow an entity who had benefitted
from the special bidding provisions for small businesses to become
unjustly enriched by partitioning a portion of their license area to
parties that do not qualify for such benefits. The Commission also
seeks comment on build-out requirements and license term for
partitioned MTA and EA geographic area licenses.
42. The Commission seeks comment on whether spectrum disaggregation
would be feasible for paging, and how much spectrum a paging licensee
should be permitted to disaggregate. The Commission seeks comment on
build-out requirements and license term for disaggregated geographic
area licenses. If spectrum disaggregation is feasible in paging it may
facilitate the efficient use of spectrum, increase competition, and
expedite service to the public.
43. The Commission also seeks comment on an issue raised by the
Federal Trade Commission in comments regarding paging application
fraud. Specifically, the Commission seeks comment on whether the
current FCC Form 600 should be revised to warn applicants of the risk
of application fraud, and whether application preparation services
should be required to certify that the applicant has received
information regarding the Commission's rules and the obligations of
licensees. Commenters are invited to address whether the frequency
coordinator should implement additional procedures to reduce fraudulent
or speculative paging applications. The alternative to revising the
application and/or the coordination process could permit application
mill fraud which may affect many unwitting consumers.
44. The FNPRM solicits comment on a variety of alternatives
discussed herein. Any significant alternatives presented in the
comments will be considered.
B. Paperwork Reduction Act
45. This FNPRM contains either a proposed or modified information
collection. As part of its continuing effort to reduce paperwork
burdens, the Commission invites the general public and the Office of
Management and Budget (OMB) to take this opportunity to comment on the
information collections contained in this FNPRM as required by the
Paperwork Reduction Act of 1995, Pub. L. 104-13. Public and agency
comments are due at the same time as other comments on this FNPRM; OMB
notification of action is due May 12, 1997. 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.
46. Dates: Written comments by the public on the proposed
information
[[Page 11643]]
collections are due April 11, 1997. Written comments must be submitted
by the Office of Management and Budget (OMB) on the proposed
information collections on or before May 12, 1997.
47. Addresses: 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 NEOB, 725-17th Street, NW., Washington, DC 20503 or via the
Internet to fain__t@al.eop.gov.
48. Further Information: 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.
49. Supplementary Information:
Title: Revision of part 22 and part 90 of the Commission's rules to
Facilitate Future Development of Paging Systems and Implementation of
section 309(j) of the Communications Act--Competitive Bidding
Type of Review: New Collection.
Respondents:
Number of Respondents: We estimate that approximately 50,000
licensees or potential licensees could take the opportunity to
partition or disaggregate a license or obtain a license through
partitioning or disaggregation.
Estimated Time Per Response: The average burden on the applicant is
3 hours for the information necessary to complete FCC Forms 490 or 430
and 600 filed under cover of the FCC Form 490. We estimate that 75
percent of the respondents will contract out the burden of responding.
We estimate that it will take approximately 30 minutes to coordinate
information with those contractors. The remaining 25 percent of
respondents are estimated to employ in-house staff to provide the
information.
37,500 applicants (contracting out) x .5 hour = 18,750 hours
12,500 applicants (in-house) x 3 hours = 37,500 hours
Total burden = 18,750 + 37,500 = 56,250 hours.
Estimated Cost to the Respondent: Total capital and start-up costs:
Applicants wishing to file the package under cover of the FCC Form 490
electronically will incur a $2.30 per minute on-line charge. On-line
time would amount to no more than 30 minutes. Seventy-five percent of
applicants are expected to file electronically.
37,500 applications x $2.30 x 30 = $2,587,500
All other respondents are expected to file manually and would incur
the following costs:
12,500 applications x $1.15 = $14,375
Total capital and start-up costs = $2,587,500 + $14,375 = $2,601,875.
We assume that the respondents contracting out the information
would use an attorney or engineer (average $200 per hour) to prepare
the information.
37,500 applications x $200 per hour x 3 hours = $22,500,000
Total respondent costs: $2,601,875 + $22,500,000 = $25,101,875
Cost to the Federal Government: The government review time per
response for this submission is estimated at 15 minutes per response
with review being done by personnel at the GS-6 level.
50,000 applications x $3.39 = $169,500
C. Ex Parte Presentations--Non-Restricted Proceeding
50. This is a non-restricted notice and comment rulemaking
proceeding. Ex parte presentations are permitted, except during the
Sunshine Agenda period, provided that they are disclosed as provided in
the Commission's rules. See generally 47 CFR 1.1202, 1.1203, 1.1206(a).
D. Comment Period
51. Pursuant to applicable procedures set forth in Secs. 1.415 and
1.419 of the Commission's rules, 47 CFR 1.415, 1.419, interested
parties may file comments on or before April 17, 1997. Reply comments
are to be filed on or before May 1, 1997. To file formally in this
proceeding, you must file an original and four copies of all comments,
reply comments, and supporting comments. If you want each Commissioner
to receive a personal copy of your comments, you must file an original
and nine copies. Comments and reply comments should be sent to Office
of the Secretary, Federal Communications Commission, 1919 M Street,
NW., Room 222, Washington, DC 20554. Parties should also submit two
copies of comments and reply comments to Bobby Brown, Commercial
Wireless Division, Wireless Telecommunications Bureau, 2025 M Street,
NW., Room 7130, Washington, DC 20554. Parties should also file one copy
of any documents filed in this docket with the Commission's copy
contractor, International Transcription Services, Inc., 2100 M Street,
NW., Suite 140, Washington, DC 20037. Comments and reply comments will
be available for public inspection during regular business hours in the
FCC Reference Center, Room 239, 1919 M Street, NW., Washington, DC
20554.
E. Authority
52. Authority for issuance of this Further Notice of Proposed
Rulemaking is contained in sections 4(i), 257, 303(r), and 303(j) of
the Communications Act of 1934, as amended, 47 U.S.C. Sec. 154(i), 257,
303(r), and 303(j).
F. Ordering Clauses
53. Accordingly, it is ordered that, pursuant to the authority of
sections 4(i), 257, 303(r), and 303(j) of the Communications Act of
1934, as amended, 47 U.S.C. Sec. 154(i), 257, 303(r), and 303(j), a
Further Notice of Proposed Rulemaking is hereby adopted.
54. It is further ordered that comments in WT Docket No. 96-18 will
be due April 17, 1997 and reply comments will be due May 1, 1997.
List of Subjects
47 CFR Part 22
Communications common carriers, Reporting and recordkeeping
requirements.
47 CFR Part 90
Common carriers, Reporting and recordkeeping requirements.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 97-6091 Filed 3-11-97; 8:45 am]
BILLING CODE 6712-01-P
