24 GHz Service; Licensing and Operation

[Federal Register: October 5, 2000 (Volume 65, Number 194)]
[Rules and Regulations]
[Page 59350-59362]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05oc00-6]

=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 2, 87 and 101

[FCC 00-272; WT Docket No. 99-327]

24 GHz Service; Licensing and Operation

AGENCY: Federal Communications Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This document adds and amends regulations governing the
licensing and operation of the 24.25-24.45 GHz and 25.05-25.25 GHz
bands. In addition, the Commission adopts competitive bidding rules to
select among mutually exclusive applicants for licenses in these bands.
We expect such amendments to promote the effective use of the 24 GHz
band and to accommodate deployment of point-to-point, point-to-
multipoint, and multipoint-to-multipoint fixed wireless technology at
24 GHz.

DATES: Effective December 4, 2000, except for Secs. 101.527 and
101.529, which contain information collection requirements that have
not been approved by the Office of Management and Budget. The
Commission will publish a document in the Federal Register announcing
the effective date of those sections. Public comments on the
information collections contained in the Report and Order are due
November 6, 2000.

ADDRESSES: Federal Communications Commission, 445 12th Street, SW.,
Room 4-C207, Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Michael Pollak, Shellie Blakeney or
Paul Moon of the Policy and Rules Branch, Public Safety and Private
Wireless Division, Wireless Telecommunications Bureau, (202) 418-0680,
or Nese Guendelsberger of the Auctions and Industry Analysis Division,
Wireless Telecommunications Bureau, (202) 418-0660.

[[Page 59351]]

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order (R&O) in WT Docket No. 99-327, FCC 00-272, adopted July 25,
2000, and released August 1, 2000. The full text of the R&O is
available for inspection and copying during normal business hours in
the FCC Reference Center, 445 12th Street, SW., Room CY-A257,
Washington, DC 20554. The full text of the R&O may also be purchased
from the Commission's copy contractor, International Transcription
Services, 1231 20th Street, NW., Washington, DC 20036, telephone (202)
857-3800, facsimile (202) 857-3805. The full text of the R&O may also
be downloaded at: http://www.fcc.gov/Bureaus/Wireless/Orders/2000/
fcc00272>. Alternative formats (computer diskette, large print, audio
cassette, and Braille) are available to persons with disabilities by
contacting Martha Contee at (202) 418-0260, TTY (202) 418-2555, or at
mcontee@fcc.gov.

Synopsis of the Report and Order

The R&O gives maximum regulatory flexibility to 24 GHz Service
providers. Both incumbent 24 GHz band licensees and new licensees will
be governed by part 101 of the Commissions Rules, 47 CFR part 101. The
Commission will assign the 24 GHz band for licensing throughout the
United States by 172 Economic Areas. The Commission also authorized
additional economic areas for licensing covering the following United
States territories and possessions: Guam, Northern Mariana Islands,
Puerto Rico, the United States Virgin Islands, America Samoa and the
Gulf of Mexico. The Commission will license the 24 GHz band in 40 MHz
flexible channel pairs, five per economic area. The R&O also permitted
24 GHz licensee more flexibility in system design, by designating that
either the upper or lower side of the 40 MHz channel pairs can be used
for the nodal station or the subscriber station.
The R&O allowed 24 GHz band licensees to offer a variety of fixed
services. 24 GHz providers may elect their regulatory status as either
common carrier or private, under the conditions set forth in Title II
and III of the Communications Act of 1934, as amended. Regarding
service and construction requirements, the R&O adopted a ten-year
license term and required a ``substantial service'' showing at the ten
year license renewal date. Substantial service is defined as a
``service'' that is sound, favorable, and substantially above a level
of mediocre service which might minimally warrant renewal. In addition,
the following ``safe harbor'' examples achieve compliance: (a) A
demonstration of four links per million population within a service
area; (b) a demonstration of service to an area that has limited
wireless or wireline telecommunication services.
Partitioning and disaggregation are permitted, and any partitionee/
disaggregatee is authorized to hold its license for the remainder of
the original licensee's term. The R&O also clarified that licensees may
aggregate 24 GHz band spectrum.
The R&O adopted flexible technical standards as well that are both
consistent with the Commission's part 101 Rules, 47 CFR part 101. These
rules include, but are not limited to the revision of the emission mask
for the 24 GHz band; allowing the use of non-directional antennas and
one foot parabolic antennas; eliminating individual licensing for nodal
stations; and allowing a maximum contiguous bandwidth of up to 200 MHz
through aggregation.
The R&O provides that the competitive bidding rules set forth in
part 1, subpart Q, of the Commission's rules will apply to the auction
of licenses in the 24 GHz band unless otherwise provided therein. The
application of the part 1 rules to the 24 GHz band will include any
amendments that may be adopted in the ongoing part 1 proceeding.
Consistent with current practice, the Wireless Telecommunications
Bureau (Bureau) will seek comment on matters such as auction design in
a public notice prior to the auction. The R&O adopts a ten-day period
for filing petitions to deny against long-form applications and
delegates to the Bureau the discretion to implement a five-day period
in exigent circumstances.
The R&O also adopts a three-tiered approach to bidding credits.
Entrepreneurs, which are defined as entities having average annual
gross revenues not exceeding $40 million for the preceding three years,
are eligible to receive a 15 percent bidding credit. Small businesses,
which are defined as entities having average annual gross revenues not
exceeding $15 million for the preceding three years, are eligible to
receive a 25 percent bidding credit. Very small businesses, which are
defined as entities having average annual gross revenues not exceeding
$3 million for the preceding three years, are eligible to receive a 35
percent bidding credit.
Finally, the R&O adopts attribution rules for the 24 GHz band.
Under these rules, the Commission will attribute to the applicant the
gross revenues of its controlling interests and their affiliates in
assessing whether the applicant is qualified to take advantage of the
Commission's small business provisions.

Regulatory Flexibility Act Final Analysis

As required by the Regulatory Flexibility Act (``RFA''), an Initial
Regulatory Flexibility Analysis (``IRFA'') was incorporated in the
Amendment to parts 1, 2, and 101 of the Commission's Rules To License
Fixed Services at 24 GHz, WT Docket 99-327, Notice of Proposed
Rulemaking (NPRM), 64 FR 71088 (rel. Dec. 20, 1999), issued in this
proceeding. The Commission sought written public comment on the
proposals in the NPRM, including comment on the IRFA. No comments were
filed in direct response to the IRFA. This Final Regulatory Flexibility
Analysis (``FRFA'') conforms to the Regulatory Flexibility Act.

I. Need for, and Objectives of, the Report and Order in the Report and
Order

We adopt rules for licensing and operation of the 24.25-24.45 GHz
and 25.05-25.25 GHz bands. In addition, the Commission adopts
competitive bidding rules to select among new licensees for this band.
We amend parts 1, 2, 87 and 101 of the Commission's Rules and expect
such amendments to promote the effective use of the 24 GHz band and to
accommodate deployment of point-to-point, point-to-multipoint, and
multipoint-to-multipoint fixed wireless technology at 24 GHz. The rule
changes we adopt today establish a flexible regulatory and licensing
framework, which will enhance opportunities to provide a broadband
wireless service, foster effective competition, and further our efforts
for consistent rule application regarding broadband wireless services.

II. Summary of Significant Issues Raised by the Public Comments in
Response to the Initial Regulatory Flexibility Analysis

No comments were filed in direct response to the IRFA. However, as
described in Section V, we have taken into account all comments
submitted generally by small entities.

III. Description and Estimate of the Number of Small Entities to Which
the Rules Will Apply

The Regulatory Flexibility Act directs agencies to provide a
description of, and, where feasible, an estimate of the number of small
entities that may be affected by the proposed rules, if adopted. The
Regulatory Flexibility Act defines the term ``small entity'' as having
the same meaning as the terms ``small business,'' ``small
organization,''

[[Page 59352]]

and ``small governmental jurisdiction.'' In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act. A small business concern is one which:
(1) Is independently owned and operated; (2) is not dominant in its
field of operation; and (3) satisfies any additional criteria
established by the Small Business Administration (SBA). A small
organization is generally ``any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field.''
Nationwide, as of 1992, there were approximately 275,801 small
organizations. ``Small governmental jurisdiction'' generally means
``governments of cities, counties, towns, townships, villages, school
districts, or special districts, with a population of less than
50,000.'' As of 1992, there were approximately 85,006 such
jurisdictions in the United States. This number includes 38,978
counties, cities, and towns; of these, 37,566, or ninety-six percent,
have populations of fewer than 50,000. The Census Bureau estimates that
this ratio is approximately accurate for all governmental entities.
Thus, of the 85,006 governmental entities, we estimate that 81,600
(ninety-one percent) are small entities. The rules we are adopting
today will affect incumbent licensees who were relocated to the 24 GHz
band from the 18 GHz band, and applicants who wish to provide services
in the 24 GHz band. The Commission has not developed a definition of
small entities applicable to licensees in the 24 GHz band. Therefore,
the applicable definition of small entity is the definition under the
SBA rules for the radiotelephone industry that provides that a small
entity is a radiotelephone company employing fewer than 1,500 persons.
The 1992 Census of Transportation, Communications, and Utilities,
conducted by the Bureau of the Census, which is the most recent
information available, shows that only 12 radiotelephone firms out of a
total of 1,178 such firms that operated during 1992 had 1,000 or more
employees. This information notwithstanding, we believe that there are
only two licensees in the 24 GHz band that were relocated from the 18
GHz band, Teligent and TRW, Inc. It is our understanding that Teligent
and its related companies have less than 1,500 employees, though this
may change in the future. However, TRW is not a small entity.
Therefore, only one incumbent licensee in the 24 GHz band is a small
business entity. The proposals also affect potential new licensees on
the 24 GHz band. Pursuant to 47 CFR 24.720(b), the Commission has
defined ``small business'' for Blocks C and F broadband PCS licensees
as firms that had average gross revenues of less than $40 million in
the three previous calendar years. This regulation defining ``small
business'' in the context of broadband PCS auctions has been approved
by the SBA. With respect to new applicants in the 24 GHz band, we shall
use this definition of ``small business'' and apply it to the 24 GHz
band under the name ``entrepreneur.'' With regard to ``small
business,'' we shall adopt the definition of ``very small business''
used for 39 GHz licenses and PCS C and F block licenses: Businesses
with average annual gross revenues for the three preceding years not in
excess of $15 million. Finally, ``very small business'' in the 24 GHz
band shall be defined as an entity with average gross revenues not to
exceed $3 million for the preceding three years. The Commission will
not know how many licensees will be small or very small businesses
until the auction, if required, is held. Even after that, the
Commission will not know how many licensees will partition their
license areas or disaggregate their spectrum blocks, if partitioning
and disaggregation are allowed.

IV. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements

This R&O adopts rules that will entail reporting, recordkeeping,
and/or third-party consultation. However, the Commission believes that
these requirements are the minimum needed. By this R&O, we require
licensees to notify the Commission within 30 days of a change in
regulatory status between common carrier and/or non-common carrier. We
also require licensees to substantiate their renewal expectancies with
information demonstrating substantial service. In addition, because we
consider partitioning and disaggregation to be a form of license
assignment, we require such action to receive Commission approval via
application for assignment on FCC Form 603. With regard to alien
ownership, we require licensees to amend their FCC Form 602 to reflect
any changes in foreign ownership information, together with the initial
information required by FCC Form 601.

V. Steps Taken to Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered

The Regulatory Flexibility Act requires an agency to describe any
significant alternatives that it has considered in reaching its
proposed approach, which may include the following four alternatives:
(1) The establishment of differing compliance or reporting requirements
or timetables that take into account the resources available to small
entities; (2) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for small entities;
(3) the use of performance, rather than design, standards; and (4) an
exemption from coverage of the rule, or any part thereof, for small
entities.
In the NPRM, we noted that the Commission originally used Standard
Metropolitan Statistical Areas (SMSA) to license the DEMS service,
which failed to include rural communities because SMSAs are too large.
We then proposed to reduce the licensing service area in order to: (1)
Include rural communities; (2) maximize the opportunities for the
dissemination of 24 GHz licenses among a wide array of entities; and
(3) facilitate efficient use of this spectrum. While adopting Economic
Areas (EAs) in this R&O, we cite to our experience with the 39 GHz
auction in which the majority of small, very small and rural qualified
bidders won licenses. We also note that our decision to offer flexible
partitioning and disaggregation/aggregation will speed service to rural
areas and encourage the participation of smaller entities at auction.
In addition, we adopt flexible bidding credits for smaller entities,
while noting that small entities may further form bidding consortiums
to prevail at auction. In sum, we believe that adopting EAs for
licensing this service will serve the public interest best, in light of
the overall changes we are making here to specifically benefit small
entities.
In this R&O, we authorize 24 GHz licensees to provide common
carrier service, non-common carrier service, or both under a single
license. We also adopt our proposal in the NPRM to require licensees to
notify us within 30 days of such a change in regulatory status.
However, we minimize the reporting burden by declining to require
licensees to obtain Commission authorization prior to a change in
regulatory status. In addition, we decline to require that the
licensees detail the specific services they seek to provide. This is
consistent with our streamlined application process, and it serves to
simplify the reporting requirements for small entities.
In this R&O, we adopt a ten-year license term in conjunction with a
renewal expectancy based on substantial service. In order to
demonstrate substantial service,

[[Page 59353]]

licensees must provide the Commission with a description of geographic
coverage and population served or links installed, and a description of
how the service complies with the substantial service requirement. In
addition, licensees must submit copies of any violations or proceedings
that relate to their renewal expectancy. While taking into account this
burden on small entities, we note that such recordkeeping ensures that
the 24 GHz band is not ``warehoused'' or abused to the preclusion of
small business opportunities. In this context, we also note that we
declined here to adopt a license term in excess of ten years, in order
to afford more opportunities for entities, including small businesses,
to capture licenses that fail to meet substantial service.
In order to overcome entry barriers for smaller entities, we adopt
here flexible partitioning and disaggregation rules. Parties to
partitioning and disaggregation agreements may negotiate whether one
party or both will be responsible for demonstrating fulfillment of
pertaining construction requirements. Parties may also combine
partitioning and disaggregation agreements. Any such agreements are
treated, however, as a form of license assignment and therefore require
Commission approval via filing FCC Form 603. Licensees who received
bidding credits at auction and who subsequently partition or
disaggregate are also subject to the unjust enrichment provision
contained in our Rules. We believe that these recordkeeping and unjust
enrichment restrictions are the minimum needed, when weighed against
the significant benefits to small entities that result from the
flexible approach we are adopting here.
In order to supervise effectively the compliance of 24 GHz
licensees with regard to our alien ownership restrictions, we require
both common carrier and non-common carrier licensees in the 24 GHz band
to provide the alien ownership information requested in FCC Form 601,
as well as amendments in FCC Form 602 to reflect any changes in foreign
ownership information. This enforcement is a mutual benefit to all
licensees and a minimal reporting burden.
In the R&O, we adopt a ten-day period for filing petitions to deny
long-form applications. We decline to adopt a five-day period in order
to give small businesses more flexibility in challenging license
awards. We also adopt a third level of small business bidding credits
in addition to those proposed in the NPRM, in respect of the fact that
the capital costs of operating facilities in the 24 GHz band will vary
widely. Finally, we adopt attribution rules based on a ``controlling
interest'' standard to determine eligibility for our small business
provisions. We believe these rules, along with our affiliation rules,
will prevent larger firms from illegitimately seeking status as a small
business. All of these decisions regarding competitive bidding
procedures will work to the benefit of small entities.

Report to Congress

The Commission will send a copy of this R&O, including this FRFA,
in a report to be sent to Congress pursuant to the Small Business
Regulatory Enforcement Fairness Act of 1996, see 5 U.S.C. 801(a)(1)(A).
In addition, the Commission will send a copy of the R&O, including this
FRFA, to the Chief Counsel for Advocacy of the Small Business
Administration. A copy of the R&O and this FRFA (or summaries thereof)
will also be published in the Federal Register. See 5 U.S.C. 604(b).

Paperwork Reduction Analysis

This R&O contains either a new 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 revision to the
information collections contained in the R&O. As required by the
Paperwork Reduction Act of 1995, Public Law 104-13, public comments on
the information collections contained in the R&O are due November 6,
2000.
Comments on the modified and proposed information collections
contained in the R&O should address: (a) Whether the 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. These
comments should be submitted to Judy Boley, Federal Communications
Commission, Room 1-C804, 445 12th Street, SW., Washington, DC 20554, or
via the Internet to jboley@fcc.gov>. Furthermore, a copy of any such
comments should be submitted to Edward C. Springer, OMB Desk Officer,
10236 NEOB, 725 17th Street, NW., Washington, DC 20503 or via the
Internet to edward__c.__springer@omb.eop.gov>.
OMB Approval Number: 3060-XXXX.
Title: Section 101.527 Construction requirements of 24 GHz
operations & 101.529 Renewal Expendancy criteria for 24 GHz licenses.
Form No: N/A.
Type of Review: New collection.
Respondents: Business or other for-profit.
Number of Respondents: 952.
Estimated Time Per Response: 20 hours.
Total Annual Burden: 14,399 hours.
Total Annual Cost: $952,000.
Needs and Uses: The information required in Sections 101.527 and
101.529 is used to determine whether a renewal applicant of a 24 GHz
Service system has complied with the requirements to provide
substantial service by the end of the ten-year initial license term.
The FCC uses the information to determine whether an applicant's
license will be renewed at the end of the license period.

Ordering Clauses

The actions of the Commission herein are taken pursuant to Sections
4(i), 257, 303, 309(j) of the Communications Act of 1934, as amended,
47 U.S.C. 154(i), 257, 303, 309(j).
The rules in this Report and Order are effective December 4, 2000,
except for Secs. 101.527 and 101.529, which contain information
collection requirements that have not been approved by the Office of
Management and Budget. The Commission will publish a document in the
Federal Register announcing the effective date of those sections.
Public comments on the information collections contained in the Report
and Order are due November 6, 2000.
Pursuant to Section 4(i) of the Communications Act of 1934, as
amended, 47 U.S.C. 154(i), that the Commission's Consumer Information
Bureau, Reference Information Center, shall send a copy of this Report
and Order, including the Final Regulatory Flexibility Analysis, to the
Chief Counsel for Advocacy of the Small Business Administration.

List of Subjects

47 CFR Part 1

Administrative practice and procedure, Radio.

47 CFR Parts 2, 87, and 101

Communications equipment, Radio, Reporting and recordkeeping
requirements.

[[Page 59354]]

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Rule Changes

For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR parts 1, 2, 87 and 101 as
follows:

PART 1--PRACTICE AND PROCEDURE

1. The authority citation for part 1 continues to read as follows:

Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, 303(r), 309
and 325(e).

2. In Table 1 in Sec. 1.1307(b)(1), the entry for Local Multipoint
Distribution Service is removed and a new entry is added in its place,
to read as follows:

Sec. 1.1307 Actions which may have a significant environmental effect,
for which Environmental Assessments (EAs) must be prepared.

* * * * *
(b) * * *
(1) * * *

Table 1.--Transmitters, Facilities and Operations Subject to Routine
Environmental Evaluation
------------------------------------------------------------------------
Service (title 47 CFR rule part) Evaluation required if
------------------------------------------------------------------------

* * * *
* * *
Local Multipoint Distribution Service Non-building-mounted antennas:
(subpart L of part 101) and 24 GHz height above ground level to
(subpart G of part 101). lowest point of antenna 10 m
and power>1640 W EIRP
Building-mounted antennas:
power >1640 W EIRP LMDS and 24
GHz Service licensees are
required to attach a label to
subscriber transceiver
antennas that:
(1) provides adequate notice
regarding potential
radiofrequency safety hazards,
e.g., information regarding
the safe minimum separation
distance required between
users and transceiver
antennas; and
(2) references the applicable
FCC-adopted limits for radio-
frequency exposure specified
in Sec. 1.1310.
------------------------------------------------------------------------

* * * * *

PART 2--FREQUENCY ALLOCATIONS AND RADIO TREATY MATTERS; GENERAL
RULES AND REGULATIONS

3. The authority citation for part 2 continues to read as follows:

Authority: 47 U.S.C. 154, 302a, 303 and 336 unless otherwise
noted.

Sec. 2.106 [Amended]

4. Section 2.106 is amended by revising pages 71 and 72 of the
Table to read as follows:
BILLING CODE 6712-02-P

[[Page 59355]]

[GRAPHIC] [TIFF OMITTED] TR05OC00.008

[[Page 59356]]

[GRAPHIC] [TIFF OMITTED] TR05OC00.009

BILLING CODE 6712-02-C

[[Page 59357]]

* * * * *

PART 87--AVIATION SERVICES

5. The authority citation for part 87 is revised to read as
follows:

Authority: 47 U.S.C. 154, 303 and 307(e), unless otherwise
noted.

Sec. 87.173 [Amended]

6. Section 87.173(b), the Frequency Table, is amended in the first
column by revising ``24250-25250 MHz'' to read ``24750-25050 MHz''.

PART 101--FIXED MICROWAVE SERVICES

7. The authority citation for part 101 continues to read as
follows:

Authority: 47 U.S.C. 154, 303.

8. Section 101.1 is amended by revising paragraph (b) to read as
follows:

Sec. 101.1 Scope and authority.

* * * * *
(b) The purpose of the rules in this part is to prescribe the
manner in which portions of the radio spectrum may be made available
for private operational, common carrier, 24 GHz Service and Local
Multipoint Distribution Service fixed, microwave operations that
require transmitting facilities on land or in specified offshore
coastal areas within the continental shelf.
* * * * *

9. Section 101.3 is amended by adding a definition for ``24 GHz
Service'' immediately preceding the alphabetical definitions and adding
a definition for ``User or Subscriber Station,'' in alphabetical order,
and by revising the definitions of ``Digital Electronic Message
Service'' and ``Nodal Station,'' to read as follows:

Sec. 101.3 Definitions.

* * * * *
24 GHz Service. A fixed point-to-point, point-to-multipoint, and
multipoint-to-multipoint radio system in the 24.25-24.45 GHz band and
in the 25.05-25.25 GHz band consisting of a fixed main (nodal) station
and a number of fixed user terminals. This service may encompass any
digital fixed service.
* * * * *
Digital Electronic Message Service. A two-way end-to-end fixed
radio service utilizing digital termination systems for the exchange of
digital information in the frequency bands 10,550-10,680 MHz, 18,820-
18,920 MHz, and 19,160-19,260 MHz. This service may also make use of
point-to-point microwave facilities, satellite facilities or other
communications media to interconnect digital termination systems to
comprise a network.
* * * * *
Nodal station. The central or controlling stations in a microwave
radio system operating on point-to-multipoint or multipoint-to-
multipoint frequencies with one or more user stations or internodal
links.
* * * * *
User or subscriber station. The station(s) in a microwave radio
system operating at the users' premises on point-to-multipoint or
multipoint-to-multipoint frequencies and communicating with one or more
nodal stations.
* * * * *

10. Section 101.21 is amended by revising paragraph (g) to read as
follows:

Sec. 101.21 Technical content of applications.

* * * * *
(g) Each application in the Local Multipoint Distribution Service
and 24 GHz Service must contain all technical information required by
FCC Form 601 and any other applicable form or associated Public Notices
and by any applicable rules in this part.

11. Section 101.45 is amended by revising paragraph (b)
introductory text to read as follows:

Sec. 101.45 Mutually exclusive applications.

* * * * *
(b) A common carrier application, except in the Local Multipoint
Distribution Service and in the 24 GHz Service, will be entitled to
comparative consideration with one or more conflicting applications
only if:
* * * * *

12. Section 101.61 is revised to read as follows:

Sec. 101.61 Certain modifications not requiring prior authorization in
the Local Multipoint Distribution Service and 24 GHz Service

In the Local Multipoint Distribution Service (LMDS) licensees may
add, remove, or relocate facilities within the area authorized by the
license without prior authorization. Upon request by an incumbent
licensee or the Commission, an LMDS licensee shall furnish the
technical parameters, location and coordinates of the completion of the
addition, removal, relocation or modification of any of its facilities
within the BTA. The LMDS licensee must provide such information within
ten (10) days of receiving a written request. This section also applies
to 24 GHz licensees that are licensed according to Economic Areas.

13. Section 101.63 is amended by revising paragraph (a) to read as
follows:

Sec. 101.63 Period of construction; certification of completion of
construction.

(a) Each Station, except in Local Multipoint Distribution Services,
24 GHz Service and the 38.6-40.0 GHz band, authorized under this part
must be in operation within 18 months from the initial date of grant.
* * * * *

14. Section 101.101 is amended by revising the entry for 24,250-
25,250 MHz in the table to read as follows:

Sec. 101.101 Frequency availability.

--------------------------------------------------------------------------------------------------------------------------------------------------------
Radio service
--------------------------------------------------------------------------------------------------------------------
Frequency band (MHz) Other (Parts 15, 21,
Common carrier (Part Private radio (Part Broadcast auxiliary 22, 24, 25, 74, 78 & Notes
101) 101) (Part 74) 100)
--------------------------------------------------------------------------------------------------------------------------------------------------------

* * * * * * *
24,250-25,250...................... CC.................... OFS...................

* * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

* * * * *

[[Page 59358]]

15. Section 101.105 is amended by revising the text of paragraph
(c)(6) preceding the table to read as follows:

Sec. 101.105 Interference protection criteria.

* * * * *
(c) * * *
(6) Each application for new or modified nodal station on channels
numbered 4A, 4B, 7, 9, and 19/20 in the 10.6 GHz band must demonstrate
that all existing co-channel stations are at least 56 kilometers from
the proposed nodal station site. Applicants for these channels must
certify that all licensees and applicants for stations on the adjacent
channels within 56 kilometers of the proposed nodal station have been
notified of the proposed station and do not object. Alternatively, or
if one of the affected adjacent channel interests does object, the
applicant may show that all affected adjacent channel parties are
provided a C/I protection ratio of 0 dB. An applicant proposing to
operate at an AAT greater than 91 meters must reduce its EIRP in
accordance with the following table; however, in no case may EIRP
exceed 70 dBm on the 10.6 GHz channels:
* * * * *
16. Section 101.109(c) is amended in the table by revising the
entry for 24, 250 to 25,250 MHz and by revising footnote 7 and the note
to footnote 7 to read as follows:

Sec. 101.109 Bandwidth.

* * * * *
(c) * * *

------------------------------------------------------------------------
Frequency band (MHz) Maximum authorized bandwidth
------------------------------------------------------------------------

* * * * *
24,250 to 25,250.......................... 40 MHz \7\

* * * * *
------------------------------------------------------------------------
\7\ For channel block assignments in the 24,250-25,250 MHz and 38,600-
40,000 MHz bands, the authorized bandwidth is equivalent to an
unpaired channel block assignment or to either half of a symmetrical
paired channel block assignment. When adjacent channels are
aggregated, equipment is permitted to operate over the full channel
block aggregation without restriction.
Note to Footnote 7: Unwanted emissions shall be suppressed at the
aggregate channel block edges based on the same roll-off rate as is
specified for a single channel block in Sec. 101.111(a)(1) or in Sec.
101.111(a)(2)(ii) and (iii) as appropriate.

17. Section 101.111 is amended by adding paragraph (a)(2)(iv) and
by revising paragraph (a)(4) introductory text to read as follows:

Sec. 101.111 Emission limitations.

(a) * * *
(2) * * *
(iv) The emission mask for 24 GHz Service used the equation in
paragraph (a)(2)(ii) of this section applies only to the edge of each
channel, but not to subchannels established by licensees. The value of
P in the equation is for the percentage removed from the carrier
frequency and assumes that the carrier frequency is the center of the
actual bandwidth used. The emission mask can be satisfied by locating a
carrier of the subchannel sufficiently far from the channel edges so
that the emission levels of the mask are satisfied. The 24 GHz emission
mask shall use a value B (bandwidth) of 40 MHz, for all cases even in
the case where a narrower subchannel is used (for instance the actual
bandwidth is 10 MHz) and the mean output power used in the calculation
is the sum of the output power of a fully populated channel.
* * * * *
(4) For DEMS channels in the 17,700-19,700 MHz band:
* * * * *

18. In Sec. 101.115(c), the table is amended by revising the entry
for ``24,250 to 25,250'' and footnote 10 to read as follows:

Sec. 101.115 Directional antennas.

* * * * *
(c) * * *

Antenna Standards
--------------------------------------------------------------------------------------------------------------------------------------------------------
Maximum Minimum radiation suppression to angle in degrees from centerline of main
beamwidth beam in decibels
to 3 dB Minimum ----------------------------------------------------------------------------
Frequency (MHz) Category points antenna
\1\ gain 5 deg. to 10 deg. 15 deg. 20 deg. 30 deg. 100 deg. 140 deg.
(included (dbi) 10 deg. to 15 to 20 to 30 to 100 to 140 to 180
angle in deg. deg. deg. deg. deg. deg.
--------------------------------------------------------degrees)----------------------------------------------------------------------------------------

* * * * * * *
24,250 to 25,250 \10\..................... A 2.8 38 25 29 33 36 42 55 60
B 2.8 38 20 24 28 32 35 36 45

* * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ If a licensee chooses to show compliance using maximum beamwidth to 3 dB points, the beamwidth limit shall apply in both the azimuth and the
elevation planes.
* * * * * * *
\10\ DEMS User Station antennas in this band must meet performance Standard B and have a minimum antenna gain of 34 dBi. The maximum beamwidth
requirement does not apply to DEMS User Stations. DEMS Nodal Stations need not comply with these standards. Stations authorized to operate in the
24,250-25,250 MHz band do not have to meet these standards, however, the Commission may require the use of higher performance antennas where
interference problems can be resolved by the use of such antennas.

* * * * *

19. Section 101.139 is amended by adding paragraph (g) to read as
follows:

Sec. 101.139 Authorization of transmitters.

* * * * *
(g) After January 1, 2001, a transmitter operating on the 24,250-
24,450 MHz and 25,050-25,250 MHz bands must meet the emission
limitation set forth in Sec. 101.111(a)(2)(ii).

20. Section 101.141 is amended by revising paragraph (a)
introductory text to read as follows:

Sec. 101.141 Microwave modulation.

(a) Microwave transmitters employing digital modulation techniques
and operating below 19.7 GHz band must, with appropriate multiplex
equipment, comply with the following additional requirements:
* * * * *

21. Section 101.147 is amended by:
A. Revising the fifth sentence of paragraph (r) introductory text.
B. Revising the introductory text of paragraph (r)(9) preceding the
table and paragraphs (r)(9)(i) and (r)(9)(ii).

[[Page 59359]]

C. Adding paragraph (r)(9)(iii).
The additions and revisions read as follows:

Sec. 101.147 Frequency assignments.

* * * * *
(r) 17,700 to 19,700 and 24,250 to 25,250 MHz. * * * Licensees,
except 24 GHz band licensees, may use either a two-way link or one
frequency of a frequency pair for a one-way link and must coordinate
proposed operations pursuant to the procedures required in
Sec. 101.103. * * *
* * * * *
(9) The following frequencies are available for point-to-multipoint
DEMS Systems, except that channels 35-39 were available only to
existing 18 GHz DEMS licensee as of March 14, 1997 and are now
available by geographic area licensing in the 24 GHz Service to be used
as the licensee desires. The 24 GHz spectrum can be aggregated or
disaggregated and does not have to be used in the transmit/receive
manner shown except to comply with international agreements along the
US borders. Systems operating on Channels 25-34 must cease operations
as of January 1, 2001, except that those stations on these channels
within 150 km of the coordinates 38 deg.48' N/76 deg.52' W (Washington,
DC, area) and 39 deg.43' N/ 101 deg.46' W (Denver, Colorado area) must
cease operations of June 5, 1997:
* * * * *
(i) Each station on channels 25 through 34 will be limited to one
frequency pair per SMSA. Additional channel pairs may be assigned upon
a showing that the service to be provided will fully utilize the
spectrum requested. A channel pair may be subdivided as desired by the
licensee.
(ii) A frequency pair on channels 25 through 34 may be assigned to
more than one licensee in the same SMSA or service area so long as the
interference protection criteria of Sec. 101.105 are met.
(iii) Channels 35 through 39 are licensed in the 24 GHz Service by
Economic Areas for any digital fixed service. Channels may be used at
either nodal or subscriber station locations for transmit or receive
but must be coordinated with adjacent channel and adjacent area users
in accordance with the provisions of Sec. 101.509. Stations must also
comply with international coordination agreements.
* * * * *

22. Section 101.305 is amended by revising paragraphs (a), (b) and
(c) to read as follows:

Sec. 101.305 Discontinuance, reduction or impairment of service.

(a) If the public communication service provided by a station in
the Common Carrier Radio Services, the Local Multipoint Distribution
Service or 24 GHz Service is involuntarily discontinued, reduced or
impaired for a period exceeding 48 hours, the station licensee must
promptly notify the Commission. In every such case, the licensee must
furnish full particulars as to the reasons for such discontinuance,
reduction or impairment of service, including a statement as to when
normal service is expected to be resumed. When normal service is
resumed, prompt notification thereof must be given Commission.
(b) No station licensee subject to title II of the Communications
Act of 1934, as amended, may voluntarily discontinue, reduce or impair
public communication service to a community or part of a community
without obtaining prior authorization from the Commission pursuant to
the procedures set forth in part 63 of this chapter. In the event that
permanent discontinuance of service is authorized by the Commission,
the station license is terminated; except that station licenses in the
Local Multipoint Distribution Service and 24 GHz Service are not
terminated if the discontinuance is a result of a change of status by
the licensee from common carrier to non-common carrier pursuant to
Sec. 1.929 of this chapter.
(c) Any licensee not subject to title II of the Communications Act
of 1934, as amended, who voluntarily discontinues, reduces or impairs
public communication service to a community or a part of a community
must notify the Commission within 7 days thereof. In the event of
permanent discontinuance of service, the station license is
automatically terminated; except that station licenses in the Local
Multipoint Distribution Service and 24 GHz Service are not terminated
if the discontinuance is a result of a change of status by the licensee
from non-common carrier to common carrier pursuant to Sec. 1.929 of
this chapter.
* * * * *

23. Section 101.311 is revised to read as follows:

Sec. 101.311 Equal employment opportunities.

Equal opportunities in employment must be afforded by all common
carrier licensees and all Local Multipoint Distribution Service and 24
GHz Service licensees in accordance with the provisions of Sec. 21.307
of this chapter.

24. Subpart G is amended by:
A. Revising the table of contents for subpart G.
B. Revising the heading of subpart G.
C. Revising Secs. 101.501, 101.503, 101.505, 101.509, and 101.511.
The revisions read as follows:

Subpart G--24 GHz Service and Digital Electronic Message Service
Sec.
101.501 Eligibility.
101.503 Digital Electronic Message Service Nodal Stations.
101.505 Frequencies.
101.509 Interference protection criteria.
101.511 Permissible services.
101.513 Transmitter power.
101.515 Emissions and bandwidth.
101.519 Interconnection.
101.521 Spectrum utilization.
101.523 Service areas.
101.525 24 GHz system operations.
101.526 License term.
101.527 Construction requirements for 24 GHz operations.
101.529 Renewal expectancy criteria for 24 GHz licenses.
101.531 Application form and contents.
101.533 Regulatory status.
101.535 Geographic partitioning and spectrum aggregation/
disaggregation.
101.537 24 GHz band subject to competitive bidding.
101.538 Designated entities.

Subpart G--24 GHz Service and Digital Electronic Message Service

Sec. 101.501 Eligibility.

See Sec. 101.147(n) for licensing of DEMS facilities in the 10.6
GHz band. Applications for new facilities using the 18 GHz band are no
longer being accepted. Any entity, other than one precluded by
Sec. 101.7, is eligible for authorization to provide 24 GHz Service
under this subpart.

Sec. 101.503 Digital Electronic Message Service Nodal Stations.

10.6 GHz DEMS Nodal Stations may be authorized only as a part of an
integrated communication system wherein 10.6 GHz DEMS User Stations
associated therewith also are licensed to the 10.6 GHz DEMS Nodal
Station licensee. Applications for 10.6 GHz DEMS Nodal Station licenses
should specify the maximum number of 10.6 GHz DEMS User Stations to be
served by that nodal station. Any increase in that number must be
applied for pursuant to Sec. 1.913 of this chapter.

Sec. 101.505 Frequencies.

Frequencies, and the conditions on which they are available, for
DEMS operations are contained in this subpart as well as in
Sec. 101.147(m), (n), and (r)(9).

[[Page 59360]]

Sec. 101.509 Interference protection criteria.

(a) As a condition for use of frequencies in this service each
licensee is required to:
(1) Engineer the system to be reasonably compatible with adjacent
and co-channel operations in the same or adjacent areas on all
frequencies; and
(2) Cooperate fully and in good faith to resolve whatever potential
interference and transmission security problems may be present in
adjacent and co-channel operations.
(b) All harmful interference to other users of co-channel and
adjacent channel use in the same or adjacent geographical area are
prohibited. In areas where Economic Areas are in close proximity,
careful consideration should be given to minimum power requirements and
to the location, height, and radiation pattern of the transmitting and
receiving antennas. Licensees are expected to cooperate fully in
attempting to resolve problems of potential interference before
bringing the matter to the attention of the Commission.
(c) Licensee shall coordinate their facilities whenever the
facilities have optical line-of-sight into other licensees' areas or
are within the same geographic area. Licensees are encouraged to
develop operational agreements with relevant licensees in the same or
adjacent areas. Incumbent SMSA licensee(s) shall retain exclusive
rights to its channel(s) within its SMSA and must be protected.
(d) Licensees shall comply with the appropriate coordination
agreements between the United States and Canada and the United States
and Mexico concerning cross-border sharing and use of the 24 GHz bands
which may require using channels pairs in accordance with the table in
Sec. 101.147(r)(9).
(e) The Commission recommends that coordination is not necessary if
the power flux density (pfd) at the boundary of the relevant adjacent
area is lower than -14 dBW/m\2\ in any 1 MHz. This value can be changed
and agreed upon by both coordinating parties. Licensees should be able
to deploy with a pfd up to -94 dBW/m\2\ in any 1 MHz at the boundary of
the relevant adjacent area without negatively affecting the successful
operations of the adjacent area licensee.

Sec. 101.511 Permissible services.

(a) Authorizations for stations in the 24 GHz Service will be
granted to provide services on a common carrier basis or a non-common
carrier basis or on both a common carrier and non-common carrier basis
in a single authorization.
(b) Stations may render any kind of digital communications service
consistent with the Commission's rules and the regulatory status of the
station to provide services on a common carrier or non-common carrier
basis.
(c) An applicant or licensee may submit a petition at any time
requesting clarification of the regulatory status required to provide a
specific communications service.

25. Section 101.521 is revised to read as follows:

Sec. 101.521 Spectrum utilization.

All applicants for DEMS frequencies in the 10.6 GHz band must
submit as part of the original application a detailed plan indicating
how the bandwidth requested will be utilized. In particular the
application must contain detailed descriptions of the modulation
method, the channel time sharing method, any error detecting and/or
correcting codes, any spatial frequency reuse system and the total data
throughput capacity in each of the links in the system. Further, the
application must include a separate analysis of the spectral efficiency
including both information bits per unit bandwidth and the total bits
per unit bandwidth.

26. Sections 101.523, 101.525, 101.526, 101.527, 101.529, 101.531,
101.533, 101.535, 101.537 and 101.538 are added to subpart G to read as
follows:

Sec. 101.523 Service areas.

(a) The service areas for 24 GHz are Economic Areas (EAs) as
defined in this paragraph (a). EAs are delineated by the Regional
Economic Analysis Division, Bureau of Economic Analysis, U.S.
Department of Commerce. The Commerce department organizes the 50 States
and the District of Columbia into 172 EAs. Additionally, there are
three EA-like areas: Guam and Northern Mariana Islands; Puerto Rico and
the U.S. Virgin Islands; and American Samoa and the Gulf of Mexico. A
total of 176 authorizations will be issued for the 24 GHz Service by
the FCC.
(b) Where an incumbent SMSA license area in the 24 GHz band
occupies only a portion of an EA available for application under the
competitive bidding rules, the SMSA portion will be excluded from
auction and the incumbent licensee will retain the exclusive right to
those channels within the SMSA.

Sec. 101.525 24 GHz system operations.

(a) A licensee using the 24 GHz band may construct and operate any
number of fixed stations anywhere within the area authorized to serve
without prior authorization, except as follows:
(1) A station would be required to be individually licensed if:
(i) International agreements require coordination;
(ii) Submission of an Environmental Assessment is required under
Sec. 1.1307 of this chapter;
(iii) The station would affect the radio quiet zones under
Sec. 1.924 of this chapter.
(2) Any antenna structure that requires notification to the Federal
Aviation Administration (FAA) must be registered with the Commission
prior to construction under Sec. 17.4 of this chapter.
(b) Whenever a licensee constructs or makes system changes as
described in paragraph (a)(1) of this section, the licensee is required
to notify the Commission within 30 days of the change under Sec. 1.947
of this chapter and include a statement of the technical parameters of
the changed station.

Sec. 101.526 License term.

The license term for stations licensed under this subpart is ten
years from the date of license grant or license renewal for incumbent
licensees.

Sec. 1A101.527 Construction requirements for 24 GHz operations.

(a) Each licensee must make a showing of ``substantial service''
within ten years of its license grant. A ``substantial service''
assessment will be made at renewal pursuant to the provisions and
procedures set forth in Sec. 1.949 of this chapter. ``Substantial
service'' is a service which is sound, favorable, and substantially
above a level of mediocre service which just might minimally warrant
renewal during its past license term.
(b) Each licensee must, at a minimum file:
(1) A report, maps and other supporting documents describing its
current service in terms of geographic coverage and population served
to the Commission. The report must also contain a description of the
licensees' investments in its operations. The report must be labeled as
an attachment to the renewal application; and
(2) Copies of all FCC orders finding the licensee to have violated
the Communications Act or any FCC rule or policy; and a list of any
pending proceedings that relate to any matter described in this
paragraph (b)(2).
(c) Failure to demonstrate that substantial service is being
provided in the service area will result in forfeiture of the license,
and the licensee will be unable to regain it.

[[Page 59361]]

(d) The frequencies associated with incumbent authorizations,
licensed on a SMSA basis, that have cancelled automatically or
otherwise been recovered by the Commission will automatically revert to
the applicable EA licensee.

Sec. 101.529 Renewal expectancy criteria for 24 GHz licenses.

(a) A renewal applicant involved in a renewal proceeding shall
receive a preference, commonly referred to as a renewal expectancy,
that is the most important factor to be considered in the proceeding as
long as the applicant's past record for the relevant license period
demonstrates that:
(1) The renewal applicant has provided ``substantial service''
pursuant to Sec. 101.527; and
(2) The renewal applicant has substantially complied with
applicable FCC rules, policies, and the Communications Act of 1934, as
amended.
(b) In order to establish its right to a renewal expectancy, a
licensee in the 24 GHz service involved in a renewal proceeding must
submit a showing explaining why it should receive a renewal expectancy.
At a minimum, this showing must include:
(1) A description of how the licensee has complied with the
``substantial service'' requirement; and
(2) Copies of all FCC orders finding the licensee to have violated
the Communications Act or any FCC rule or policy; and a list of any
pending proceedings that relate to any matter described in this
paragraph (b)(2).
(c) In making its showing of entitlement to a renewal expectancy, a
renewal applicant may claim credit for any system modification
applications that were pending on the date it filed its renewal
application. Such credit will not be allowed if the modification
application is dismissed or denied.

Sec. 101.531 Application form and contents.

(a) Applications for initial authorization of 24 GHz facilities are
filed on FCC Form 175 in accordance with subpart M and subpart Q of
part 1 of this chapter. FCC Form 601 is submitted subsequently either
by the winning bidder, if an auction is held to decide among two or
more mutually exclusive applications, or, in cases of no mutual
exclusivity, by the sole applicant. Applications to amend pending
applications and to modify licenses are filed on FCC Form 601.
(b) Foreign ownership information. All applicants for 24 GHz
licenses must provide the information requested on FCC Form 601 to
address all of the eligibility requirements in Sec. 101.7 of this part.
All licensees will keep the information updated.

Sec. 101.533 Regulatory status.

(a) Initial applications. An applicant for a 24 GHz license must
specify on FCC Form 601 if it is requesting authorization to provide
services on a common carrier basis, a non-common carrier basis, or on
both a common carrier and non-common carrier basis.
(b) Amendment of pending applications. Any pending application may
be amended to:
(1) Change the carrier status requested; or
(2) Add to the pending request in order to obtain both common
carrier and non-common carrier status in a single license.
(c) Modification of license. A licensee may modify a license to:
(1) Change the carrier status authorized; or
(2) Add to the status authorized in order to obtain both common
carrier and non-common carrier status in a single license.

Sec. 101.535 Geographic partitioning and spectrum aggregation/
disaggregation.

(a) Eligibility. (1) Parties seeking approval for partitioning and
disaggregation shall request from the Commission an authorization for
partial assignment of a license pursuant to Sec. 1.948 of this chapter.
(2) 24 GHz licensees may apply to the Commission to partition their
licensed geographic service areas to eligible entities and are free to
determine the portion of their service areas to be partitioned. 24 GHz
licensees may aggregate or disaggregate their licensed spectrum at any
time following the grant of a license.
(3) Any existing frequency coordination agreements shall convey
with the assignment of the geographic area or spectrum, and shall
remain in effect unless new agreements are reached.
(b) Technical standards.--(1) Aggregation. There is no limitation
on the amount of spectrum that a 24 GHz licensee may aggregate.
(2) Partitioning. In the case of partitioning, applicants and
licensees must file FCC Form 603 pursuant to Sec. 1.948 of this chapter
and list the partitioned service area on a schedule to the application.
The geographic coordinates must be specified in degrees, minutes, and
seconds to the nearest second of latitude and longitude and must be
based upon the 1983 North American Datum (NAD83).
(3) Disaggregation. Spectrum may be disaggregated in any amount. A
licensee need not retain a minimum amount of spectrum.
(4) Combined partitioning and disaggregation. The Commission will
consider requests for partial assignment of licenses that propose
combinations of partitioning and disaggregation.
(c) Unjust enrichment. 24 GHz licensees that received a bidding
credit and partition their licenses or disaggregate their spectrum to
entities not meeting the eligibility standards for such a bidding
credit, will be subject to the provisions concerning unjust enrichment
as set forth in Sec. 1.2111 of this chapter.
(d) License term. The license term for a partitioned license area
and for disaggregated spectrum shall be the remainder of the original
licensee's license term as provided for in Sec. 101.526.
(e) Construction requirements. Applications requesting approval for
partitioning or disaggregation must include a certification by each
party stating that one or both parties will satisfy the construction
requirement set forth in Sec. 101.529. Failure by a party to meet its
respective construction requirement will result in the automatic
cancellation of its license without further Commission action.

Sec. 101.537 24 GHz band subject to competitive bidding.

Mutually exclusive initial applications for licenses in the 24 GHz
band are subject to competitive bidding procedures. The procedures set
forth in part 1, subpart Q, of this chapter will apply unless otherwise
provided in this part.

Sec. 101.538 Designated entities.

(a) Eligibility for small business provisions. (1) A very small
business is an entity that, together with its controlling interests and
affiliates, has average gross revenues not exceeding $3 million for the
preceding three years.
(2) A small business is an entity that, together with its
controlling interests and affiliates, has average gross revenues not
exceeding $15 million for the preceding three years.
(3) An entrepreneur is an entity that, together with its
controlling interests and affiliates, has average gross revenues not
exceeding $40 million for the preceding three years.
(4) For purposes of determining whether an entity meets one of the
definitions set forth in paragraphs (a)(1), (a)(2), and (a)(3) of this
section, the gross revenues of the entity, its controlling interests
and affiliates shall be considered on a cumulative basis and
aggregated. An applicant seeking status

[[Page 59362]]

as a very small business, small business, or entrepreneur under this
section must disclose on its short- and long-form applications,
separately and in the aggregate, the gross revenues of the applicant
(or licensee), its controlling interests and affiliates for each of the
previous three years.
(5) Persons or entities that hold interests in an applicant (or
licensee) that are affiliates of each other or have an identity of
interests identified in Sec. 1.2110(b)(4)(iii) of this chapter will be
treated as though they were one person or entity and their ownership
interests aggregated for purposes of determining an applicant's (or
licensee's) compliance with the requirements of this section.
(6) Where an applicant (or licensee) cannot identify controlling
interests under the standards set forth in this section, the gross
revenues of all interest holders in the applicant, and their
affiliates, will be attributable.
(7) A consortium of very small businesses, a consortium of small
businesses, or a consortium of entrepreneurs is a conglomerate
organization formed as a joint venture between or among mutually
independent business firms, each of which individually satisfies the
applicable definition in paragraphs (a)(1), (a)(2) and (a)(3) of this
section. Where an applicant or licensee is a consortium of very small
businesses, a consortium of small businesses, or a consortium of
entrepreneurs, the gross revenues of each very small business, small
business, or entrepreneur shall not be aggregated.
(8) Designated entities must describe on their long-form
applications how they satisfy the requirements for eligibility for
designated entity status, and must list and summarize on their long-
form applications all agreements that affect designated entity status
such as partnership agreements, shareholder agreements, management
agreements and other agreements, including oral agreements,
establishing, as applicable, de facto or de jure control of the entity.
Such information must be maintained at the licensee's facilities or by
its designated agent for the term of the license in order to enable the
Commission to audit designated entity eligibility on an ongoing basis.
(b) Controlling interest. (1) For purposes of this section, a
controlling interest includes individuals or entities with either de
jure or de facto control of the applicant. De jure control is evidenced
by holdings of greater than 50 percent of the voting stock of a
corporation, or in the case of a partnership, general partnership
interests. De facto control is determined on a case-by-case basis. An
entity must disclose its equity interest and demonstrate at least the
following indicia of control to establish that it retains de facto
control of the applicant:
(i) The entity constitutes or appoints more than 50 percent of the
board of directors or management committee;
(ii) The entity has authority to appoint, promote, demote, and fire
senior executives that control the day-to-day activities of the
licensee; and
(iii) The entity plays an integral role in management decisions.
(2) The following rules apply for the calculation of certain
interests.
(i) Ownership interests shall be calculated on a fully diluted
basis; all agreements such as warrants, stock options, and convertible
debentures will generally be treated as if the rights thereunder
already have been fully exercised.
(ii) Partnership and other ownership interests and any stock
interest equity, or outstanding stock, or outstanding voting stock
shall be attributed as specified.
(iii) Stock interests held in trust shall be attributed to any
person who holds or shares the power to vote such stock, to any person
who has the sole power to sell such stock, and to any person who has
the right to revoke the trust at will or to replace the trustee at
will. If the trustee has a familial, personal, or extra-trust business
relationship to the grantor or the beneficiary, the stock interests
held in trust will be attributed to the grantor or beneficiary, as
appropriate.
(iv) Non-voting stock shall be attributed as an interest in the
issuing entity.
(v) Limited partnership interests shall be attributed to limited
partners and shall be calculated according to both the percentage of
equity paid in and the percentage of distribution of profits and
losses.
(vi) Officers and directors of an entity shall be considered to
have a controlling interest in the entity. The officers and directors
of an entity that controls a licensee or applicant shall be considered
to have a controlling interest in the licensee or applicant.
(vii) Ownership interests that are held indirectly by any party
through one or more intervening corporations will be determined by
successive multiplication of the ownership percentages for each link in
the vertical ownership chain and application of the relevant
attribution benchmark to the resulting product, except that if the
ownership percentage for an interest in any link in the chain exceeds
50 percent or represents actual control, it shall be treated as if it
were a 100 percent interest.
(viii) Any person who manages the operations of an applicant or
licensee pursuant to a management agreement shall be considered to have
a controlling interest in such applicant or licensee if such person, or
its affiliate, has authority to make decisions or otherwise engage in
practices or activities that determine, or significantly influence:
(A) The nature or types of services offered by such an applicant or
licensee;
(B) The terms upon which such services are offered; or
(C) The prices charged for such services.
(ix) Any licensee or its affiliate who enters into a joint
marketing arrangement with an applicant or licensee, or its affiliate,
shall be considered to have a controlling interest, if such applicant
or licensee, or its affiliate, has authority to make decisions or
otherwise engage in practices or activities that determine, or
significantly influence:
(A) The nature or types of services offered by such an applicant or
licensee;
(B) The terms upon which such services are offered; or
(C) The prices charged for such services.
(c) Bidding credits. A winning bidder that qualifies as a very
small business or a consortium of very small businesses as defined in
this section may use the bidding credit specified in
Sec. 1.2110(e)(2)(i) of this chapter. A winning bidder that qualifies
as a small business or a consortium of small businesses as defined in
this section may use the bidding credit specified in
Sec. 1.2110(e)(2)(ii) of this chapter. A winning bidder that qualifies
as an entrepreneur or a consortium of entrepreneurs as defined in this
section may use the bidding credit specified in Sec. 1.2110(e)(2)(iii)
of this chapter.

[FR Doc. 00-24065 Filed 10-4-00; 8:45 am]
BILLING CODE 6712-01-P

Notices For
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994

24 GHz Service; Licensing and Operation

Local Navigation