95-20504. Allow Interactive Video and Data Service (IUDS) Licensees to Eliminate the One-year Construction ``Build-out'' Requirement  

  • [Federal Register Volume 60, Number 160 (Friday, August 18, 1995)]
    [Proposed Rules]
    [Pages 43105-43106]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-20504]
    
    
    
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    FEDERAL COMMUNICATIONS COMMISSION
    
    47 CFR Part 95
    
    [WT Docket No. 95-131; FCC 95-318]
    
    
    Allow Interactive Video and Data Service (IUDS) Licensees to 
    Eliminate the One-year Construction ``Build-out'' Requirement
    
    AGENCY: Federal Communications Commission.
    
    ACTION: Proposed rule.
    
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    SUMMARY: The Commission has proposed rules to allow Interactive Video 
    and Data Service (IUDS) licensees to eliminate the one-year 
    construction ``build-out'' requirement. This action was initiated on 
    our own motion in response to requests by several IUDS licensees that 
    participated in the IUDS auction. Originally crafted in the context of 
    awarding licenses by lottery, the one-year construction benchmark now 
    appears unnecessary. Licensees have sufficient economic incentives to 
    provide service as quickly as possible; eliminating this one-year 
    benchmark will provide licensees with greater flexibility in making 
    financial, equipment, and other construction-related decisions.
    
    DATES: Comments must be submitted on or before September 20, 1995 and 
    reply comments must be filed on or before October 5, 1995.
    
    ADDRESSES: Federal Communication Commission, 1919 M Street, NW., 
    Washington, DC 20554.
    
    FOR FURTHER INFORMATION CONTACT:
    Donna Kinin at (202) 418-0680, Wireless Telecommunications Bureau.
    
    SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
    of Proposed Rule Making, WT Docket 95-131, FCC 95-318, adopted July 31, 
    1995, and released August 14, 1995. The full text of this Notice of 
    Proposed Rule Making is available for inspection and copying during 
    normal business hours in the FCC Reference Center, Room 230, 1919 M 
    Street, NW., Washington, DC. The complete text may be purchased from 
    the Commission's copy contractor, International Transcription Service, 
    Inc., 2100 M Street, NW., Suite 140, Washington, DC 20037, telephone 
    (202) 857-3800.
    
    Summary of Notice of Proposed Rule Making
    
        1. In response to requests by several IUDS licensees that were 
    awarded licenses as a result of the IUDS auction, the Commission 
    initiated a rule making to amend part 95 of its Rules, 47 CFR part 95, 
    to eliminate the one-year construction ``build-out'' requirement. The 
    IUDS service rules, crafted in 1992 in the context of awarding licenses 
    by lottery, were intended to reduce speculation and spectrum 
    warehousing. The Commission believes that the one-year construction 
    benchmark is no longer necessary when licenses are awarded by auction.
        2. The Commission proposes to amend Sec. 95.833(a) of its rules to 
    permit IUDS licensees to eliminate the one-year construction 
    requirement, but not alter the three- and five-year benchmarks. 
    Licensees argue that the IUDS equipment market is in early development 
    and the one-year rule will hinder the industry's technological 
    development. The Commission believes that with auction-awarded 
    licenses, licensees have sufficient economic incentive to provide 
    service as quickly as possible. In addition, it is in the public 
    interest to provide licensees with greater flexibility in making 
    financial, equipment and other construction-related decisions. Finally, 
    leaving the three- and five-year benchmarks in tact, ensures timely 
    service to the public.
        3. The Commission seeks specific comments concerning the proposed 
    rule amendment.
    
    Initial Regulatory Flexibility Analysis
    
    Reason for Action
    
        The Commission proposes to amend part 95 of its rules to eliminate 
    the one-year ``build-out'' construction requirement in the Interactive 
    Video and Data Service (IUDS). Section 95.833(a) was crafted in the 
    context of lotteries, but with auctions, speculation and spectrum 
    warehousing are not issues.
    
    Objectives
    
        This change will provide greater opportunity for IUDS technological 
    development and give licensees greater flexibility in their equipment/
    business decisions.
    
    Legal Basis
    
        The proposed action is authorized under sections 4(i), 303(r) and 
    309(j) of the Communications Act, 47 U.S.C. 154(i), 303(r) and 309(j).
    
    Report, Recordkeeping and Other Compliance Requirements
    
        None.
    
    Federal Rules Which Overlap, Duplicate or Conflict With These Rules
    
        None.
    
    Description, Potential Impact, and Small Entities Involved
    
        The proposed rule change would benefit IUDS licensees by allowing 
    more flexibility in their construction decisions, while offering 
    service in the intended time frame. Most IUDS licensees are expected to 
    be small entities.
    
    Any Significant Alternatives Minimizing the Impact on Small Entities 
    Consistent With the Stated Objectives
    
        None.
    
    [[Page 43106]]
    
    
    List of Subjects in 47 CFR Part 95
    
        Interactive Video and Data Service (IUDS), Radio.
    
    Federal Communications Commission.
    LaVera F. Marshall,
    Acting Secretary.
    [FR Doc. 95-20504 Filed 8-17-95; 8:45 am]
    BILLING CODE 6712-01-M
    
    

Document Information

Published:
08/18/1995
Department:
Federal Communications Commission
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
95-20504
Dates:
Comments must be submitted on or before September 20, 1995 and reply comments must be filed on or before October 5, 1995.
Pages:
43105-43106 (2 pages)
Docket Numbers:
WT Docket No. 95-131, FCC 95-318
PDF File:
95-20504.pdf
CFR: (1)
47 CFR 95