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PuG;P%\  `$Times New RomanXj\  PvG;XP%\  `$Times New RomanXX\  PwG;P%\  `$Times New RomanXj\  PxG;XP%\  `$Times New RomanXX\  PyG;P%\  `$Times New RomanXj\  PzG;XP%\  `$Times New RomanXX\  P{G;P%\  `$Times New RomanXj\  P|G;XP%\  `$Times New RomanX2YY3|j   4&Before thepp27  <xxA FCC 95395 e FEDERAL COMMUNICATIONS COMMISSION !Washington, D.C. 20554 In the Matter of hh#(-)  F` `  hh#()- Amendment of Parts 2 and 90 of thehh#() - PR Docket No. 89553 Commission's Rules to Provide for the(-) Use of 200 Channels Outside thehh#(-) Designated Filing Areas in thehh#(-) 896901 MHz and the 935940 MHz Bands() Allotted to the Specialized Mobile Radio Pool -) ` `  hh#(-) Implementation of Section 309(j)hh#(-) of the Communications Act hh#(-)pp27PP Docket No. 93253 Competitive Bidding hh#(-)  F` `  hh#() Implementation of Sections 3(n) and 322(-) of the Communications Acthh#(-)pp27GN Docket No. 93252 * #|\  PG;P#SECOND ORDER ON RECONSIDERATION AND SEVENTH REPORT AND ORDER #Xj\  PG;XP#  Adopted: September 14, 1995 (-pp2Released: September 14, 1995 By the Commission: Commissioner Barrett issuing a statement. !TABLE OF CONTENTS Paragraph I. INTRODUCTIONp"(#J1 II. EXECUTIVE SUMMARYp"(#J2 III. BACKGROUNDp`"(#I22 IV. SECOND ORDER ON RECONSIDERATION A. Coverage Requirementsp`"(#I27B. Treatment of Incumbents ` ` 1. MTA Licensee's Interference Protection Obligations to Incumbentsp`"(#I35 ` ` 2. Incumbents' Interference Protection Obligations to MTA Licenseep`"(#I38 C. Secondary Site Licensingp."(#H 43 D. Finders' Preference Programp`"(#I48 E. Loading Requirementsp."(#H 50 F. Discontinuance of Operationp`"(#I54 G. Foreign Ownership Waiversp`"(#I57 V. SEVENTH REPORT AND ORDER A. Competitive Bidding Issues ` ` ` 1. Competitive Bidding Design p."(#H 60 ` ` ` 2. License Groupingp (#E . . . .66 B. Bidding Issues ` ` 1. Bidding Proceduresp`"(#I67 X` hp x (#%'0*,.8135@8:G;P#эX` hp x (#%'0*,.8135@8:.X` hp x (#%'0*,.8135@8:   Discussion. We will retain the rule as adopted. Geotek has not presented a sufficient justification to warrant our elimination of the shortspacing option in defining the MTA licensee's interference obligations. We find no merit to Geotek's claim that shortspaced MTA licensees will "box in" incumbents, as we have considered and rejected similar arguments in the past. When we developed the shortspacing table in the Report and Order for PR Docket 9360,,0Í,0ÍY/#Xj\  P{G;XP##X\  P|G;P#X` hp x (#%'0*,.8135@8:X` hp x (#%'0*,.8135@8:G;XP##X\  P?G;P#эX` hp x (#%'0*,.8135@8:X` hp x (#%'0*,.8135@8: Specifically, each applicant will be required to specify on its Form 175 applications certain identifying information, including its status as a designated entity (if applicable), its classification (i.e., individual, corporation, partnership, trust, or other), the MTAs and frequency blocks for which it is applying, and, assuming that the licenses will be auctioned, the names of persons authorized to place or withdraw a bid on its behalf.   As we indicated in the Competitive Bidding Second Report & Order, if we receive only one application that is acceptable for filing for a particular license, and thus there is no mutual exclusivity, we will issue a Public Notice cancelling the auction for this license and establishing a date for the filing of a longform application, the acceptance of which will trigger the procedures permitting petitions to deny (as discussed at  127, infra).cX` hp x (#%'0*,.8135@8:X` hp x (#%'0*,.8135@8: In the Competitive Bidding Second Report & Order, the Commission adopted safeguards designed to ensure that the requirements of Section 309(j)(4)(E) are satisfied.oX` hp x (#%'0*,.8135@8:X` hp x (#%'0*,.8135@8: In the Competitive Bidding Second Report & Order, we decided it was unnecessary and undesirable to impose additional performance requirements, beyond those already provided in the service rules, for all auctionable services.X` hp x (#%'0*,.8135@8:X` hp x (#%'0*,.8135@8: The statute also requires the Commission to "ensure that small businesses, rural telephone companies, and businesses owned by members of minority groups and women are given the opportunity to participate in the provision of spectrumbased services.">X` hp x (#%'0*,.8135@8:  In instructing the Commission to ensure the opportunity for designated entities to participate in auctions and spectrumbased services, Congress was well aware of the problems that designated entities would have in competing against large, wellcapitalized companies in auctions and the difficulties they encounter in accessing capital. For example, the legislative history accompanying our grant of auction authority states generally that the Commission's regulations "must promote economic opportunity and competition," and "[t]he Commission will realize these goals by avoiding excessive concentration of licenses and by disseminating licenses among a wide variety of applicants, including small businesses and businesses owned by members of minority groups and women."6X` hp x (#%'0*,.8135@8:X` hp x (#%'0*,.8135@8:AX` hp x (#%'0*,.8135@8:  Although we received no comment on our proposed attribution level of 25 percent,[BX` hp x (#%'0*,.8135@8:cX` hp x (#%'0*,.8135@8: but disagrees with AMTA's suggestion that the Commission should not afford any bidding credits on encumbered blocks,@dX` hp x (#%'0*,.8135@8:eX` hp x (#%'0*,.8135@8:  Pro Tec suggests that any existing incumbent designated entity that meets its three criteriafX` hp x (#%'0*,.8135@8: