96-19347. Establishing Rules and Policies for Local Multipoint Distribution Service and Fixed Satellite Services  

  • [Federal Register Volume 61, Number 146 (Monday, July 29, 1996)]
    [Proposed Rules]
    [Pages 39424-39429]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-19347]
    
    
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    FEDERAL COMMUNICATIONS COMMISSION
    47 CFR Part 21
    
    [CC Docket No 92-297, FCC 96-311]
    
    
    Establishing Rules and Policies for Local Multipoint Distribution 
    Service and Fixed Satellite Services
    
    AGENCY: Federal Communications Commission.
    
    ACTION: Fourth Notice of Proposed Rulemaking.
    
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    SUMMARY: In this Fourth Notice of Proposed Rulemaking (FNPRM), the 
    Commission proposes to designate, on a primary protected basis, the 
    31.0-31.3 GHz (31 GHz) band to LMDS for both hub-to-subscriber and 
    subscriber-to-hub transmissions. In addition, the Commission seeks 
    comment on eligibility of LECs and cable operators to obtain LMDS 
    licenses in the geographic areas they serve. These actions are taken to 
    provide maximum flexibility to a full range of LMDS service providers, 
    and to provide consumers with more choices in service providers, new 
    services, and innovative technologies.
    
    DATES: Comments must be submitted on or before August 12, 1996, and 
    reply comments must be submitted on or before August 22, 1996.
    
    ADDRESSES: Federal Communications Commission, Washington, D.C. 20554.
    
    FOR FURTHER INFORMATION CONTACT: Regarding 31 GHz frequency band 
    issues: Bob James, Private Wireless Division, Wireless 
    Telecommunications Bureau, (202) 418-0680; regarding eligibility 
    issues: Walter Strack, Wireless Telecommunications Bureau, (202) 418-
    0600.
    
    SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
    Fourth Notice of Proposed Rulemaking in CC Docket 92-297, adopted July 
    19, 1996, and released July 22, 1996. The complete text of the Fourth 
    Notice of Proposed Rulemaking is available for inspection and copying 
    during normal business hours in the FCC Reference Center (Room 239), 
    1919 M Street, N.W., Washington D.C., and also may be purchased from 
    the Commission's copy contractor, International Transcription Services, 
    at (202) 857-3800, 1919 M Street, N.W., Room 246, Washington, D.C. 
    20554.
    
    SYNOPSIS OF FOURTH NOTICE OF PROPOSED RULEMAKING
    
        1. In the first Notice of Proposed Rulemaking (NPRM), 58 FR 6400 
    (January 28, 1993), the Commission considered three petitions for 
    rulemaking proposing a redesignation of the 28 GHz band. That band 
    currently is designated for fixed point-to-point and fixed satellite 
    service use. It found that redesignation of the point-to-point use of 
    the band to point-to-multipoint use could stimulate greater use of a 
    band that largely has lain fallow. However, the Commission asked for 
    comment from satellite entities regarding the effect of redesignation 
    on any proposed fixed satellite use of the band. Non-geostationary 
    orbit (NGSO) and Geostationary orbit (GSO) FSS systems were proposed. 
    In addition, entities planning mobile satellite services requested 
    spectrum for their uplink feeder links.
        2. In the Third Notice of Proposed Rulemaking (Third NPRM), 60 FR 
    43740 (August 23, 1995), the Commission proposed a band segmentation 
    plan that it tentatively concluded would permit both LMDS and Fixed 
    Satellite Service (FSS) systems to operate in the 28 GHz frequency 
    band. It also proposed to accommodate feeder links for certain Mobile 
    Satellite Service (MSS) systems in this band. The Report and Order 
    which is issued in combination with the instant FNPRM makes a final 
    decision on segmentation of the 28 GHz band among fixed satellite, 
    mobile satellite uplinks, and LMDS. That decision will be published in 
    this publication in due course.
        3. The FNRPM requests comment on two matters. First, it proposes to 
    designate, on a primary protected basis, the 31.0-31.3 GHz (31 GHz) 
    band to LMDS for both hub-to-subscriber and subscriber-to-hub 
    transmissions. This action stems from efforts to accommodate a variety 
    of LMDS system designs, services and transmission media in the adjacent 
    28 GHz band, and is being taken on the Commission's own motion. This 
    proposed designation of spectrum for LMDS would provide consumers 
    access to more choices in service providers, new services, and 
    innovative technologies, while accommodating those LMDS system designs 
    requiring a wide separation between the transmit and receive 
    frequencies when operated in a two-way mode.
        4. In order to ensure that there is adequate two-way interactive 
    capacity for the various proposed LMDS systems, the Commission 
    recognizes the need to designate additional spectrum for LMDS. The 
    Commission observed that there is significant consumer demand for 
    alternate providers of local exchange services, internet access, LANs 
    and video teleconferencing, and that the LMDS proponents note that this 
    demand can be more immediately satisfied, in an economically and 
    technically efficient manner, by LMDS than by many of the alternate 
    transmission media, thus making these services more accessible rapidly 
    to a wider segment of the population. Accordingly, the Commission 
    believes that the proposed designation of 300 MHz of spectrum would 
    ensure consumers access to new and competitive services and 
    technologies. Further, through written ex parte comments, several LMDS 
    proponents highlighted some technical difficulties with using the 31 
    GHz band, e.g., need for two antennas to deliver the desired service, 
    effects on performance level, and increased system costs. The 
    Commission requests that parties address its proposal to make the LMDS 
    service a primary protected use in the 31.0-31.3 GHz band, the 
    technical issues LMDS operators might encounter in using this band, and 
    possible measures that may be used in overcoming such technical issues. 
    The Commission also requests comment on how to assign this additional 
    spectrum to LMDS entities. Should it be treated as a separate block and 
    assigned independently of other LMDS spectrum? Or should it be combined 
    with spectrum assigned in the associated Report and Order for LMDS 
    operations and assigned as a single block? The Commission proposes to 
    assign the 31 GHz spectrum and the 1000 MHz designated in the attached 
    Report and Order as a single block.
        5. An additional issue concerns existing licensees operating in the 
    31 GHz band, some of which are engaged in traffic signal 
    communications, i.e., traffic light monitoring and control. Such 
    existing usage appears to be relatively light and geographically 
    concentrated. Overlaying LMDS operations in those areas where there are 
    such uses raises the potential for interference problems which could 
    degrade the utility of such systems and perhaps adversely affect LMDS 
    operations. However, the Commission's current rules explicitly provide 
    that authorized operations at 31 GHz are not afforded any rights or 
    obligations with respect to interference with other licensed 
    operations. Thus, any operations that an entity believes are critical 
    in nature and should otherwise warrant interference protection should 
    be operated in a frequency band where such necessary protection is 
    provided for in our rules. One band where these types of operations are 
    permitted is the 23 GHz band. However, because systems in the 23 GHz 
    band receive interference protection, new systems are subject to the 
    prior coordination requirements of Section 101.103(d). The Commission 
    asks for comment on what effect these
    
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    requirements will have on 31 GHz systems moving to the 23 GHz band. In 
    addition, the Commission notes that mobile operations are permitted in 
    the 31 GHz band but are not permitted in the 23 GHz band. There appear 
    to be no existing mobile operations in the 31 GHz band; nevertheless, 
    the Commission asks for comment on what effect, if any, this will have 
    in moving current fixed operations to the 23 GHz band. Given that 
    incumbents are only authorized to operate on a non-interference basis, 
    should they be entitled to any recovery for reasonable relocation 
    costs? If so, should any of the 28 GHz band applicants be required to 
    contribute to the recovery of such reasonable costs?
        6. The Commission's proposal to make LMDS a protected service in 
    this band presupposes that incumbent licensees continue to operate on a 
    unprotected basis, in this instance, ``secondary'' to LMDS. In the 
    event one of the unprotected operations interferes with, or receives 
    interference from, an LMDS system, the unprotected licensees must take 
    steps to remedy the problem, or accept the resulting interference if it 
    is operating the affected receiver or transmitter. Although the 
    incumbent licensees have assumed all the risks of receiving 
    interference, given the nature of some of these operations, the 
    Commission seeks comment on whether there are any methods by which 
    incumbent 31 GHz operations could be accommodated without delaying, 
    causing interference to, or limiting the usefulness of LMDS services in 
    this band. In light of the proposed ``secondary'' nature of the non-
    LMDS fixed services in this band, the Commission also seeks comment on 
    whether it should accept any new applications, modifications, or 
    renewal applications in the 31 GHz band.
        7. Consistent with its intent to allow the rapid deployment of 
    LMDS, the Commission encourages cooperation among the LMDS providers 
    and existing licensees in exploring any methods which would allow the 
    services to coexist, but that would not impose any economic or 
    technical burdens on the LMDS providers. For example, would the LMDS 
    licensees have sufficient capacity to accommodate the existing 
    licensees as customers of their services? Or are there existing 
    mechanisms that will permit all of these services to share the entire 
    band without imposing any economic burdens on LMDS? Or are there other 
    options the Commission should consider? In commenting on this request, 
    the Commission asks that any recommendation advocating sharing include 
    the supporting technical analysis.
        8. Second, the FNPRM seeks comment on eligibility of LECs and cable 
    operators to obtain LMDS licenses in the geographic areas they serve. 
    Throughout this proceeding commenters have had opportunities to address 
    whether open eligibility for LMDS licenses would be likely to impede or 
    hasten competition. The current record of this proceeding, however, was 
    developed prior to enactment of the Telecommunications Act of 1996 
    (1996 Act). One of the key objectives of the 1996 Act is to expedite 
    the introduction of competition to incumbent LECs and cable companies. 
    In carrying out this statutory mandate, the Commission considers it 
    important to obtain specific comment on how our policies towards LMDS 
    eligibility would best promote the competitive objectives of the 1996 
    Act.
        9. The proposed rules contemplate only a single LMDS licensee in 
    each service area. Accordingly, in the same market, there will be no 
    competition among multiple LMDS licensees, although some competition 
    may develop among providers of similar services via alternative 
    transmission technologies. It therefore is appropriate to consider 
    measures to ensure that the unprecedented amount of spectrum assigned 
    to each LMDS license will be used to enhance the competitive provision 
    of services in these highly concentrated markets. The Commission seeks 
    comment on whether it should temporarily restrict eligibility for 
    incumbent LECs and cable companies that seek to obtain LMDS licenses in 
    their geographic service areas.
        10. In the NPRM that initiated this proceeding, the Commission 
    proposed to license two equal competitors in every LMDS service area 
    and not to restrict the ability of specific types of telecommunications 
    providers to obtain LMDS licenses. In the Third NPRM, the Commission 
    proposed only a single LMDS license for each service area and sought 
    additional comment on the eligibility issue regarding Commercial Mobile 
    Radio Service (CMRS) providers, MMDS licensees, LEC and cable 
    participation in LMDS.
        11. In determining whether it would be in the public interest to 
    restrict LEC or cable eligibility to obtain a LMDS license within their 
    respective service areas, the Commission considers whether LMDS will 
    provide a unique and important new source of competition to incumbent 
    cable and telephone companies. The record of this proceeding strongly 
    supports the conclusion that LMDS is a potentially important source of 
    competition to both LECs and cable operators. 28 GHz LMDS licenses will 
    permit use of up to 1.3 GHz of spectrum by a single provider, and 
    equipment is relatively close to marketability. While it is not 
    possible to identify all potential uses of LMDS, licensees could use 
    this unparalleled amount of spectrum to construct sophisticated 
    networks that will incorporate aspects of many current 
    telecommunications offerings. It also appears that LMDS is uniquely 
    positioned to provide competitive telecommunications services and video 
    program delivery because of its large potential for two-way broadband 
    capabilities. In considering eligibility for LECs and cable operators 
    within their geographic service areas one must weigh the potential for 
    competition presented by open entry against the possibility that this 
    spectrum may be used to forestall rather than promote competition. Open 
    eligibility may delay or eliminate an opportunity to increase the 
    number of competitors in the local exchange telephony and multichannel 
    video programming markets. On the other hand, a bar on eligibility 
    could prevent LECs and cable operators from using LMDS to compete 
    against each other more effectively and rapidly or to provide new 
    services not now offered by any firm. It also is possible that by 
    restricting eligibility we prevent some potential providers from 
    realizing efficiencies of scale and scope that could be realized if, 
    for example, a LEC could use LMDS to expand the area it serves and to 
    expand the range of services it offers. As a deregulatory principle, 
    this Commission does not seek to interfere in or distort decisions 
    based on sound business judgment by imposing unnecessary regulation. 
    The Commission seeks comment on these issues.
        12. The Commission asks parties to comment with specificity on 
    projected uses of LMDS spectrum, including the degree to which LMDS is 
    uniquely suited to entry into the local exchange and multichannel video 
    programming markets. Do LMDS licenses represent a unique and necessary 
    resource for de-concentrating the market power of incumbent LECs and 
    cable operators? If an LMDS license is such a resource, can it have a 
    deconcentrating effect if it is held by an incumbent LEC or cable 
    operator, given the range of services that can be provided using LMDS? 
    For example, would a LEC's use of an LMDS license to provide video 
    services reduce the market power of the incumbent cable operator? Are 
    there other realistic means of entry into these markets? In addressing 
    this point, the Commission
    
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    asks parties to discuss other realistic means of entry in terms of (1) 
    the availability of similar spectrum-based services; (2) technological 
    factors; (3) economic cost; and (4) timing.
        13. The Commission also asks for comment on whether there are any 
    inherent cost advantages possessed by incumbent LECs or cable operators 
    in holding LMDS licenses to provide service within their geographic 
    service areas. Are there any economies of scope, or other efficiencies, 
    such as efficiencies in billing and marketing of the services? Are any 
    of these efficiencies unique to LMDS or could a LEC or cable operator 
    realize them using above 40 GHz band, MMDS, OVS or other wireless or 
    wireline facilities? Are there cost advantages in use of LMDS spectrum 
    outside the markets served by incumbents? Can these cost advantages be 
    quantified?
        14. Are there any other advantages that incumbent LECs and cable 
    operators have in providing LMDS service? For example, does their size, 
    experience in that telecommunications market or financial status make 
    incumbent LECs, or more specifically the RBOCs, uniquely positioned to 
    be strong LMDS providers? If so, will limiting incumbent LEC and cable 
    operators from bidding on LMDS licenses only in their current service 
    areas discourage investment in LMDS or the development of LMDS 
    technology? Excluding incumbent LECs and cable operators, are there a 
    sufficient number of other providers with the necessary resources and 
    expertise to construct and operate LMDS systems? Will incumbent 
    eligibility restrictions have any negative effects on competition in 
    the multichannel video programming and local exchange markets--for 
    example by making it more difficult for incumbent LECs to compete with 
    cable operators for the provision of video services?
        15. The Commission also asks for comment on whether an incumbent 
    LEC or cable operator offering LMDS services within its respective 
    geographic service area would be likely to offer it at a higher price 
    than new entrants. Would this depend on whether the LMDS service 
    offered by the incumbents is substitutable for the services they 
    currently offer? Commenters are also asked to address whether it would 
    be more cost-effective for incumbents to acquire LMDS spectrum to 
    supplement their own existing services rather than to face immediate 
    competition by allowing LMDS spectrum to be acquired by a potential 
    competitor.
        16. Finally, the Commission seeks comment on how the auction 
    process can be expected to influence the concerns prompting our 
    consideration of incumbent eligibility. Will an auction ensure the 
    highest and best use of the spectrum--even if an incumbent wins the 
    license? Or, is there an economic incentive for an incumbent to bid 
    successfully at auction and to warehouse the spectrum? Or divert it to 
    less competitive uses? Does this economic incentive exist when the 
    spectrum can be used for services other than those provided by the 
    incumbent? In any case, would payment of a winning auction bid and the 
    cost of compliance with the build-out rules proposed in the Second 
    Further Notice of Proposed Rulemaking, 59 FR 7964 (February 17, 1994), 
    prove a sufficient check against such warehousing?
        17. If the Commission determines that the benefits of open entry 
    are outweighed by our desire to encourage alternative sources of 
    competition, should it adopt any restrictions, and if so, how should 
    they be structured? One option is to prohibit incumbent LECs and cable 
    companies from bidding on or acquiring licenses, each within its 
    geographic service area. Alternatively, the Commission could limit 
    incumbent LECs and cable companies' use of the LMDS spectrum. For 
    example, LEC participation in LMDS could be limited to the provision of 
    no more than a certain percentage of non-video programming, and cable 
    participation in LMDS could be limited to the provision of no more than 
    a certain percentage of video services. The advantage to this approach 
    is that it is narrower than a complete eligibility restriction, and it 
    would allow incumbent providers to use the spectrum to provide 
    competing services, as well as supplemental incumbent services. The 
    disadvantage to this approach is that it may impair the deployment of 
    LMDS as a market-driven flexible broadband service and is inconsistent 
    with the Commission's flexible spectrum policy. The Commission seeks 
    comment on these and any other alternatives.
        18. In order to adopt any restrictions on incumbent cable and LEC 
    participation, the Commission needs to define ``incumbent'' since LATA 
    lines and cable franchise areas are not coincident with BTA boundaries. 
    One possibility would be to use the cellular/PCS cross-ownership rule, 
    which implicates similar competitive concerns. Consistent with this 
    rule, an incumbent LEC or cable operator would be considered ``in-
    region'' if 20 percent or more of the population of a BTA is within a 
    LEC's telephone service area or a cable company's franchised service 
    area. The Commission asks for comment on this option and on any 
    alternative. It also seeks comment on whether the same definition 
    should be applied to both types of incumbents.
        19. The Commission also seeks comment on what should constitute an 
    attributable interest in an incumbent LEC or cable operator. In the 
    past, the Commission has used several different formulations of 
    attribution in different contexts. For these purposes, the Commission 
    proposes to consider a 10 percent or more interest, when factored 
    through a multiplier, to be attributable. It also proposes to consider 
    a 10 percent or more interest in an affiliate of an incumbent, when 
    factored through a multiplier, to be considered attributable. This 
    attribution level tracks Section 652 of the 1996 Act, 47 U.S.C. 
    Sec. 572, and it has the same goals as does the Commission in this 
    proceeding.
        20. In addition, if the eligibility of incumbent LECs and cable 
    operators is limited, the Commission seeks comment on how these 
    restrictions should be addressed in the context of the proposal in the 
    Third NPRM to allow partitioning and disaggregation. It requests 
    comment on whether competitive harm would result from a LMDS licensee 
    disaggregating its license and assigning any excess spectrum to an 
    incumbent LEC or cable operator within their geographic service areas. 
    Similarly, comment is requested on whether any competitive harm would 
    result from a LMDS licensee partitioning some of its service area to an 
    incumbent LEC or MSO within their geographic service area.
        21. Finally, if the Commission were to propose any restrictions, to 
    believes that such restrictions should continue only until there is 
    increased competition in the video and telephony markets. In the cable 
    context, Section 623(l) of the Communications Act sets forth a four 
    pronged test for determining when a cable operator faces effective 
    competition. The Commission seeks comment on whether this effective 
    competition test is a reliable indicator of appropriate levels of 
    multichannel video programming competition for these purposes. The 
    Commission focuses especially on Section 623 L(1), which can be 
    relatively easy to satisfy in rural areas. For LECs, there is no 
    standard test for effective competition in the local exchange market. 
    The ``Competitive Checklist,'' set forth in Section 271(c)(2)(B) of the 
    1996 Act, is one part of the mechanism used to determine when the 
    Regional Bell Operating Companies (RBOCs) may enter the in-region long 
    distance market. Comment is requested on whether the Competitive 
    Checklist or all the prerequisites for BOC in-region entry
    
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    serves as a reliable indicator of appropriate levels of local exchange 
    competition for determining when LECs should be allowed to hold LMDS 
    licenses. In addition, since the ``Competitive Checklist'' does not 
    apply to LECs which are not RBOCs, comment is requested on how it could 
    be used with other LECs. The Commission also seeks comment on 
    alternative sunset provision. For example, it could limit eligibility 
    for such entities to a fixed period of time (such as, 3 or 5 years) 
    with automatic sunset and optional renewal of these restrictions. 
    Commenters are requested to provide information on the following 
    questions: what alternative criteria should the Commission use to 
    sunset these restrictions? Should the Commission consider the number of 
    facilities-based competitors? Are there local competitors throughout 
    the service area? If the Commission does not use the ``Competitive 
    Checklist'', does the list suggest factors that the Commission should 
    incorporate into any sunset criteria we may adopt?
        22. Because it plans to begin the LMDS licensing process this year, 
    the Commission realizes that the imposition of any eligibility 
    restrictions now, even if they sunset at some future point, may 
    effectively preclude incumbent LECs and cable operators from 
    participation in that initial licensing process. However, incumbents 
    could offer LMDS services at a future date by acquiring all or part of 
    the LMDS spectrum in a BTA in a post-auction transaction, if we adopt 
    our competitive bidding rules proposed in the Third NPRM. The 
    Commission requests comment on these issues.
    
    Comment Dates
    
        23. Pursuant to applicable procedures set forth in Sections 1.415 
    and 1.419 of the Commission's rules, 47 CFR Secs. 1.415 and 1.419, 
    interested parties may file comments on or before August 12, 1996, and 
    reply comments on or before August 22, 1996. 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 
    plus eight copies. You should send comments and reply comments to 
    Office of the Secretary, Federal Communications Commission, Washington, 
    D.C. 20554. Comments and reply comments will be available for public 
    inspection during regular business hours in the FCC Reference Center of 
    the Federal Communications Commission, Room 239, 1919 M Street, N.W., 
    Washington, D.C. 20554.
    
    Initial Regulatory Flexibility Analysis
    
        24. As required by Section 603 of the Regulatory Flexibility Act, 
    the Commission has prepared an Initial Flexibility Analysis (IRFA) of 
    the expected significant economic impact on small entities by the 
    policies and rules proposed in this Fourth Notice of Proposed 
    Rulemaking. Written public comments are requested on the IRFA. Comments 
    must be identified as responses to the IRFA and must be filed by the 
    deadlines for comments on the FNPRM provided in section (VI)(C).
    
    I. Reason for Action
    
        25. This Fourth Notice of Proposed Rulemaking (FNPRM) requests 
    comment on two issues: (1) whether the Commission should designate, on 
    a primary protected basis, the 31.0-31.3 GHz (31 GHz) band to Local 
    Multipoint Distribution Service (LMDS); and (2) whether the Commission 
    should restrict eligibility of local exchange carriers (LEC) and cable 
    operators to hold LMDS licenses in the geographic areas they serve.
        26. With regard to the first issue, the Commission determines that 
    a further NPRM is necessary to accommodate a variety of LMDS system 
    designs, services, and transmission media in the adjacent 28 GHz band. 
    The additional spectrum would facilitate interactive systems, thus 
    providing new and innovative communications services for residential 
    and business users, including small businesses. Moreover, the 
    additional spectrum potentially could benefit small businesses unable 
    to participate in competitive bidding for licenses because additional 
    spectrum not needed by a LMDS licensee could potentially be leased to 
    smaller businesses. The 31 GHz band currently is licensed only on a 
    secondary basis, and has few incumbents. Nevertheless, the Commission 
    requests comment on whether there are any methods of accommodating 
    these services.
        27. With regard to the second issue, the current record of this 
    proceeding was developed prior to the enactment of the 
    Telecommunications Act of 1996. One of the key objectives of the Act is 
    to expedite the introduction of competition to incumbent LECs and cable 
    companies. In carrying out this mandate, the Commission believes it 
    important to obtain specific comment on how its policies towards LMDS 
    eligibility would best promote the competitive objectives of the Act. 
    In addition, the comments received after the close of the record in 
    this proceeding, including comments from small entities such as WebCel, 
    convince us that further comment is warranted.
    
    II. Objectives
    
        28. The objective of this NPRM is to request public comment on the 
    proposals made herein for the efficient licensing of LMDS services, for 
    the development and implementation of a new technology to provide 
    innovative telecommunications services to the public.
    
    III. Legal Basis for Proposed Rules
    
        29. The authority for this action is the Administrative Procedure 
    Act, 5 U.S.C. 553; and sections 4(i), 4(j), 301, 303(r) of the 
    Communications Act of 1934 as amended, 47 U.S.C. 145, 301, and 303(r).
    
    IV. Description and Estimate of Small Entities Subject to the Rules
    
        30. The regulations on which the Commission seeks comment, if 
    adopted, would apply to any small entity seeking a LMDS license. In 
    addition, the regulations would impact small entities who are incumbent 
    licensees in the 31.0-31.3 GHz frequency band.
        31. The SBA definitions of small entity for LMDS are the 
    definitions applicable to radiotelephone companies and to pay 
    television services. The definition of radiotelephone companies 
    provides that a small entity is a radiotelephone company employing 
    fewer than 1,500 persons. The definition of a small pay television 
    service is one which has annual receipts of less than $11 million. In 
    the Final Regulatory Flexibility Analysis for the Report and Order, 
    supra, we were unable to make a meaningful estimate based on the 1992 
    Census Bureau data.
        32. Likewise, we believe that the entities who are incumbent 
    licensees in the 31.0-31.3 GHz frequency band may also be comprised of 
    a majority of small entities. Such licensees are public safety 
    entities, the majority of whom are municipalities or other local 
    governmental entities. The SBA data base does not include governmental 
    entities. We are required to estimate the number of such entities with 
    populations of less than 50,000 that would be affected by our new 
    rules. There are 85,006 governmental entities in the nation. This 
    number includes such entities as states, counties, cities, utility 
    districts and school districts. There are no figures available on what 
    portion of this number has populations of fewer than 50,000. However, 
    this number includes 38,978 counties, cities and towns, and of those, 
    37,566, or 96 percent, have populations of fewer than 50,000. The 
    Census Bureau estimates
    
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    that this ratio is approximately accurate for all governmental 
    entities. There are twenty-seven (27) incumbent licensees in the 31.0-
    31.3 GHz band. Accordingly, we estimate that 96 percent, or 25 to 26 of 
    these licensees, are small entities.
        33. We request comment on the description and the number of small 
    entities that are significantly impacted by this proposed rule.
    
    V. Reporting, Recordkeeping, and Other Compliance Requirements
    
        34. The proposals under consideration in this FNPRM would not 
    involve any reporting or recordkeeping requirements.
        35. Incumbent licensees in the 31.0-31.3 GHz band would have new 
    compliance requirements vis-a-vis LMDS licensees. Our rules provide 
    that licensees therein operate on a non-interference basis, meaning 
    that they have no rights to protection from interference, nor any 
    obligations to not interfere with other similar incumbent operations. 
    The Fourth NPRM proposes that LMDS be designated as a primary protected 
    use of the band, ensuring that LMDS licensees would have interference 
    protection from other authorized users of the band.
    
    VI. Significant Alternatives Considered and Rejected
    
        36. The Commission considered and rejected the alternative of 
    placing all LMDS spectrum in the 28 GHz band, rather than placing a 
    portion of the available spectrum in the 31 GHz band. The Commission 
    concluded that LMDS requires additional spectrum to successfully deploy 
    the variety of services proposed. It also concluded that these proposed 
    services could be successfully implemented with non-contiguous bands of 
    spectrum, whereas the satellite services could not. To the extent LMDS 
    entities are small businesses, as discussed in the Final Regulatory 
    Flexibility Analysis, infra, such entities are affected by this 
    decision. However, some small entities commenting on the final band 
    plan concurred with this approach (e.g., CellularVision, RioVision).
        37. In addition, the Commission considered and rejected the 
    alternative of proceeding with open eligibility in licensing, for the 
    reasons stated herein. This action is responsive to the many small 
    entities commenting in this proceeding who requested that restrictions 
    be placed upon, or considered for, local exchange carriers and major 
    cable companies, e.g., WebCel.
    
    VII. Federal Rules That Overlap, Duplicate, or Conflict With These 
    Proposed Rules
    
        38. None.
    
    Ordering Clause
    
        39. Authority for issuance of this Fourth Notice of Proposed 
    Rulemaking is contained in Sections 4(i), 303(r) and 309(j) of the 
    Communications Act of 1934, as amended, 47 U.S.C. 154(i), 303(r) and 
    309(j).
    
    List of Subjects in 47 CFR Part 21
    
        Communications Common Carriers, Federal Communications Commission, 
    Radio.
    
    Federal Communications Commission.
    William F. Caton,
    Acting Secretary.
    [FR Doc. 96-19347 Filed 7-26-96; 8:45 am]
    BILLING CODE 6712-01-P
    
    
    

Document Information

Published:
07/29/1996
Department:
Federal Communications Commission
Entry Type:
Proposed Rule
Action:
Fourth Notice of Proposed Rulemaking.
Document Number:
96-19347
Dates:
Comments must be submitted on or before August 12, 1996, and reply comments must be submitted on or before August 22, 1996.
Pages:
39424-39429 (6 pages)
Docket Numbers:
CC Docket No 92-297, FCC 96-311
PDF File:
96-19347.pdf
CFR: (1)
47 CFR 572