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A. 1. a.(1)(a) i) a)S ,   ,  .  ,     &zzXd& US XXXCz4D4A`ArialTTC            _UX` hp x (#%'0*,.8135@8:<_        #zzXd#  XXXCz4D4A`ArialTTC .  ,     &zzXd& US XXXCz4D4A`ArialTTC4D4A`ArialTT$57=CIOW_e26I.A.1.a.(1)(a)i)a)4.2Footnote..        <p:footnote texXXXW~*X   `*Times New RomanTTW*X   `*Times New RomanTT0.header    XXXW~*X   `*Times New RomanTTW   64reference0....XXXW~*X   `*Times New RomanTTW20itemize   F  r0..0....XXXW~*X   `*Times New RomanTTW20header2 `    XXXW~*X   `*Times New RomanTTW   64heading 3Ӏ XXXW~*X   `*Times New RomanTTW 0v.footer !IC'\  `TimesRomanIPB0HeadingChapter Heading@..  2I.3  Ԁ   Ԉ tO 4Right ParRight-Aligned Paragraph Numbers.. 2I.3  Ԁ  0..L=6SubheadingSubheading 2A.3  ..    Z8HIGHLIGHT 1Italics and Bold p>T2DRAFT ONHeader A Text = DRAFT and DateX 8   '  2C K $#C--C&l&CC&l&&C&l  C[X&C&lH!H!S(#DRAFT X   K(#"US ,   July13,1998!  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MEMORANDUM 6iX' N <d6~/8INVOICE EXPExpense Subtotals for Math Invoice p  ,  $t/8INVOICE TOTTotals Invoice for Math Macro p  ,  $zZ!M3:INVOICE HEADHeading Portion of Math InvoiceX 9    X w)  C[XCXX  H1 ބd.NORMALReturn to Normal TypestyleL,SMALLSmall TypestyleH*FINEFine TypestyleL,LARGELarge Typestyled8EXTRA LARGEExtra Large Typestyle`6VERY LARGEVery Large Typestyle12ENVELOPEStandard Business Envelope with Header  TR\V,3'3'3'T, 8 ` `  I '  C[XC(&27h\p2Style 14Swiss 8 Pt Without MarginsC*o> A`ArialTTCXXXW" [  `*Times New RomanTTW*o> A`ArialTT" [  `*Times New RomanTTX|p2Style 12Dutch Italics 11.5XXXc! `>  `6Times New RomanItalicTTcXXXW" [  `*Times New RomanTTW! `>  `6Times New RomanItalicTTn)2Style 11Initial Codes for Advanced IICX[XCX[XXCX[#dndd#  [B.b, oT9 !XB  '  CX[XCX[XXCX[#B.b, oT9 !XBX[XXX[X,XXX[& AdvancedLegalWordPerfectIILearningGuide  򀀀    W(  CX[XCX[XXCX[#B.b, oT9 !XBX[XXX[X,XXX[AdvancedLegalWordPerfectIILearningGuide  򀀀    w)  CX[XCX[XXCX[#B.b, oT9 !XBX[XXX[X,XXX[򀀀  CopyrightPortolaSystems,Inc.1987,1988L Page  1  ڈ    *  2C K $#C--C&l&CC&l&&C&l  CX[X&C&lX[XXCX[#B.b, oT9 !XBX[XXX[X,XXX[򀀀  Page  1  11& CopyrightPortolaSystems,Inc.1987,1988 h (2$ |!  2C K $#C--C&l&CC&l&&C&l  v0Style 3Dutch Roman 11.5 with Margins/TabsXXXW" [  `*Times New RomanTTW#n   # 8.b, oT9 !8f0Style 4Swiss 8 Point with MarginsC*o> A`ArialTTC#dd    \~0Style 1Dutch Roman 11.5 FontXXXW" [  `*Times New RomanTTW#dnT|0Style 2Dutch Italic 11.5XXXc! `>  `6Times New RomanItalicTTcXpp0Style 5Dutch Bold 18 PointW#~>  *Times New RomanTTWXXXW" [  `*Times New RomanTTW#~>  *Times New RomanTTF\p0Style 7Swiss 11.5XXXC)o> A`ArialTTCXXXW" [  `*Times New RomanTTW)o> A`ArialTTZpp0Style 6Dutch Roman 14 PointW$ [  `*Times New RomanTTWXXXW" [  `*Times New RomanTTW$ [  `*Times New RomanTTh)k2Style 10Initial Codes for AdvancedCX[XCX[XXCX[#dndd#  [B.b, oT9 !XB  '  CX[XCX[XXCX[#B.b, oT9 !XBX[XXX[X,XXX[MM) AdvancedLegalWordPerfectLearningGuide  򀀀    W(  CX[XCX[XXCX[#B.b, oT9 !XBX[XXX[X,XXX[AdvancedLegalWordPerfectLearningGuide  򀀀    w)  CX[XCX[XXCX[#B.b, oT9 !XBX[XXX[X,XXX[򀀀  CopyrightPortolaSystems,Inc.1987,1988L Page  1  ڈ    *  CX[XCX[XXCX[#B.b, oT9 !XBX[XXX[X,XXX[򀀀  Page  1  11& CopyrightPortolaSystems,Inc.1987,1988  h&$0Style 8Initial Codes for BeginningCX[XCX[XXCX[#dndd#  ?+ b, oT9 X?[  '  CX[XCX[XXCX[#?+ b, oT9 X?X[XXX[X,XXX[))( BeginningLegalWordPerfectLearningGuide  򀀀    W(  CX[XCX[XXCX[#?+ b, oT9 X?X[XXX[X,XXX[BeginningLegalWordPerfectLearningGuide  򀀀    w)  CX[XCX[XXCX[#?+ b, oT9 X?X[XXX[X,XXX[򀀀  CopyrightPortolaSystems,Inc.1987,1988L Page  1  ڈ    *  CX[XCX[XXCX[#?+ b, oT9 X?X[XXX[X,XXX[򀀀  Page  1  11& CopyrightPortolaSystems,Inc.1987,1988  n2)>0Style 9Initial Codes for IntermediateCX[XCX[XXCX[#dndd#  ?+ b, oT9 X?  [  '  CX[XCX[XXCX[#?+ b, oT9 X?X[XXX[X,XXX[ee% IntermediateLegalWordPerfectLearningGuide  򀀀    W(  CX[XCX[XXCX[#?+ b, oT9 X?X[XXX[X,XXX[IntermediateLegalWordPerfectLearningGuide  򀀀    w)  CX[XCX[XXCX[#?+ b, oT9 X?X[XXX[X,XXX[򀀀  CopyrightPortolaSystems,Inc.L Page  1  ڈ    *  CX[XCX[XXCX[#?+ b, oT9 X?X[XXX[X,XXX[򀀀  Page  1  11& CopyrightPortolaSystems,Inc.1987,1988  n)F.UpdateInitial Codes for Update ModuleCX[XCX[XXCX[#dndd#  [B.b, oT9 !XB  '  CX[XCX[XXCX[#B.b, oT9 !XBX[XXX[X,XXX[! LegalWordPerfect5.0UpdateClassLearningGuide  򀀀    W(  CX[XCX[XXCX[#B.b, oT9 !XBX[XXX[X,XXX[LegalWordPerfect5.0UpdateClassLearningGuide  򀀀    w)  CX[XCX[XXCX[#B.b, oT9 !XBX[XXX[X,XXX[򀀀  CopyrightPortolaSystems,Inc.1987,1988L Page  1  ڈ    *  CX[XCX[XXCX[#B.b, oT9 !XBX[XXX[X,XXX[򀀀  Page  1  11& CopyrightPortolaSystems,Inc.1987,1988  D& &28Document Style0..8` ..` D &29Document Style.. . 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X/&78Technical Document Style.. 23  Ԁ. (b&79  8.4 <DL!T$80..0..&&&IC'\  `TimesRomanI&&&IC'\  `TimesRomanIL&80footnote referenceW\  `*Times New RomanTTW        T,,&81Default Paragraph Font                BC8&82footnote text           ??  US         J&83endnote referenceXXXIC'\  `TimesRomanI                IC'\  `TimesRomanIJ&84_Equation CaptionXXXC%2A`ArialTTC                C%2A`ArialTTC\&85Format Downloaded Document X  X #d#   \ Ou<6X9`("Courier NewTTO`0Bld/UndBold and Underline Text  (b&86  8.4 <DL!T$80..0..&&&IC'\  `TimesRomanI&&&IC'\  `TimesRomanIL&87footnote referenceW\  `*Times New RomanTTW    T&88Default Paragraph Font        B-"&89footnote text       ??  US     J{{&90endnote referenceXXXIC'\  `TimesRomanI        IC'\  `TimesRomanIJrr&91_Equation CaptionXXXC%2A`ArialTTC        C%2A`ArialTTC6$Triangle0..  '  2C K $$KC--C&&CC&&&C&  @" FederalCommunicationsCommissionN(#FCC98151   ?iX' }xdE|x? }  W(  2C K $$KC--C&&CC&&&C&  QRSINTROINTROI($      G$  2C K $$KC--C&&CC&&&C&2C8&C&  1    WCX` (#%'0*,.8135@8:<H?AXW  AmendmentoftheCommission'sRulesConcerningMaritimeCommunications,SecondReportand  OrderandSecondFurtherNoticeofProposedRuleMaking,PRDocketNo.92257,12FCCRcd16949(1997) K (SecondFurtherNotice).(2$ |!  2C K $#C--C&l&CC&l&&C&l  2CS&C&l  0   s G$  2C K $$KC--C&&CC&&&C&2C8&C&  2    WCX` (#%'0*,.8135@8:<H?AXW  TheMaritimeServicesconsistoftheservicesgovernedbyPart80oftheCommission'sRules,and  includepubliccoaststations,privatecoaststations,andshipstations.See47C.F.R.Part80. R G$  2C K $$KC--C&&CC&&&C&2C8&C&  3    WCX` (#%'0*,.8135@8:<H?AXW  TheSecondFurtherNoticealsosoughtcommentonspecificproposalstosimplifytheregulatory  treatmentofhighseaspubliccoaststationsandAutomatedMaritimeTelecommunicationsSystem(AMTS)coaststations.SecondFurtherNotice,12FCCRcdat1700111.However,inlightofthechangeswe 6 adopttodaytoVHFpubliccoaststationlicensing,webelievethatitwouldbeprudenttoundertakeamorecomprehensivereexaminationofthehighseasandAMTSlicensingschemes,particularlytodeterminewhetherthestatutoryobjectiveofregulatorysymmetryamongCMRSprovidersrequirestheimplementationofsimilarchangestohighseasandAMTSlicensing.SeeOmnibusBudgetReconciliation R Actof1993,Pub.L.No.10366,6002(a)(2)(A),(B),107Stat.312(largelycodifiedat47U.S.C.332 = etseq.);see,e.g.,RevisionofPart22andPart90oftheCommission'sRulestoFacilitateFuture   DevelopmentofPagingSystems,SecondReportandOrderandFurtherNoticeofProposedRulemaking,WT # s  DocketNo.9618,12FCCRcd2732,2737(1997)(PagingSecondReportandOrder).Therefore,weshall    deferresolutionoftheproposalsintheSecondFurtherNoticeregardinghighseasandAMTSspectrum. Y   CommentsfiledinthisproceedingregardingtheseproposalswillbecomeapartoftherecordinourcomprehensivereexaminationofthehighseasandAMTSlicensingschemes.Applicationsforthatspectrumwillbegovernedbycurrentprocedures,butwenonethelessnotethatmutuallyexclusiveapplicationsforhighseasandAMTSpubliccoastspectrumcannotberesolveduntilcompetitivebiddingproceduresareadoptedforthoseservices,andthatsuchapplicationsmayultimatelybedismissed.See `  AmendmentoftheCommission'sRulesRegardingthe37.038.6GHzand38.640.0GHzBands,Reportand K  OrderandSecondNoticeofProposedRuleMaking,ETDocketNo.95183,12FCCRcd18600,1864142(1997)   (39GHzReportandOrder).  G$  2C K $$KC--C&&CC&&&C&2C8&C&  4    WCX` (#%'0*,.8135@8:<H?AXW  MariTELPetitionforReconsideration(filedAug.14,1997)(MariTELPetition).II 9 G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  5    WCX` (#%'0*,.8135@8:<H?AXW  ForafullerdescriptionoftheMaritimeServicesandthehistoryofthisproceeding,seeSecondFurtherNotice,12FCCRcd  at1695356.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  6    WCX` (#%'0*,.8135@8:<H?AXW  SeeImplementationofSections3(n)and332oftheCommunicationsActRegulatoryTreatmentofMobileServices,Second  ReportandOrder,GNDocketNo.93252,9FCCRcd1411,1448(1994)(CMRSSecondReportandOrder);seealso47C.F.R.20.9. u G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  7    WCX` (#%'0*,.8135@8:<H?AXW  AmendmentoftheCommission'sRulesConcerningMaritimeCommunications,NoticeofProposedRuleMakingandNoticeof  Inquiry,PRDocketNo.92257,7FCCRcd7863(1992)(NoticeofInquiry).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  8    WCX` (#%'0*,.8135@8:<H?AXW  Part90oftheCommission'sRulessubsequentlywasamendedtoconsolidatetheprivatelandmobileradio(PLMR)services  intotwoservicepools.EntitiesformerlyeligibleinanyoftheI/LTRadioServicesarenowincludedintheIndustrial/BusinessPool.47C.F.R.90.283wasamended,however,toretaintheeligibilityrequirementsoriginallygoverningthesharingofmaritimefrequenciesbyPLMRlicensees.SeeReplacementofPart90byPart88toRevisethePrivateLandMobileRadioServicesandModifythe x PoliciesGoverningThemandExaminationofExclusivityandFrequencyAssignmentsPoliciesofthePrivateLandMobileService,Second c ReportandOrder,PRDocketNo.92235,12FCCRcd14307(1997)(RefarmingSecondReportandOrder). M G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  9    WCX` (#%'0*,.8135@8:<H?AXW  AmendmentoftheCommission'sRulesConcerningMaritimeCommunications,FirstReportandOrder,PRDocketNo.92257,10  FCCRcd8419,842125,8431(1995). U G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  10    WCX` (#%'0*,.8135@8:<H?AXW  AmendmentoftheCommission'sRulesConcerningMaritimeCommunications,FurtherNoticeofProposedRuleMaking,PRDocket  No.92257,10FCCRcd5725(1995).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  11    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat1695152. ( G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  12    WCX` (#%'0*,.8135@8:<H?AXW  "Partitioning"istheassignmentofgeographicportionsofageographicserviceareaalonggeopoliticalorother  boundaries.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  13    WCX` (#%'0*,.8135@8:<H?AXW  "Disaggregation"istheassignmentofdiscreteportionsofspectrumlicensedtoageographicarealicensee.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  14    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat16952.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  15    WCX` (#%'0*,.8135@8:<H?AXW  Id.at17011. C G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  16    WCX` (#%'0*,.8135@8:<H?AXW  AlistofcommentersisprovidedinAppendixA.OnOctober6,1997,MariTELfiledReplyComments,alongwithaMotionto  AcceptLateFiledReplyComments.SeeMariTELMotiontoAcceptLateFiledReplyCommentsat1.OnFebruary26,1998,MariTELfiled H SupplementalComments,alongwithaMotiontoAcceptSupplementalComments.SeeMariTELMotiontoAcceptSupplementalCommentsat 3 1.SinceMariTEL'sadditionalcommentscouldhavebeenlabeledasexpartefilings,wefindnoreasonnottoacceptitsReplyComments ~ andSupplementalComments,andthuswegrantMariTEL'smotions.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  17    WCX` (#%'0*,.8135@8:<H?AXW  BalancedBudgetActof1997,Pub.L.No.10533,111Stat.251(1997)(BalancedBudgetAct).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  18    WCX` (#%'0*,.8135@8:<H?AXW  See47U.S.C.309(j)(1996).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  19    WCX` (#%'0*,.8135@8:<H?AXW  CMRSSecondReportandOrder,9FCCRcdat1448.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  20    WCX` (#%'0*,.8135@8:<H?AXW  SeeImplementationofSection309(j)oftheCommunicationsActCompetitiveBidding,SecondReportandOrder,9FCCRcd  2348,235657,onreconsideration,SecondMemorandumOpinionandOrder,9FCCRcd7245(1994)(CompetitiveBiddingSecondReport K andOrder).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  21    WCX` (#%'0*,.8135@8:<H?AXW  47U.S.C.309(j)(asamendedbyBalancedBudgetAct,3002).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  22    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.80.371(c).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  23    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.80.57.Inaddition,VHFChannel88maybeauthorizedwithin120kilometers(75miles)oftheCanadianborder  ontheGreatLakes,theSt.LawrenceSeaway,andthePugetSoundandtheStraitofJuandeFucaanditsapproaches.See47C.F.R. K 80.371(c).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  24    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.90.283(d).IIIA1IIIIIIANAMES  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  25    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.Part80SubpartP.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  26    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat16988.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  27    WCX` (#%'0*,.8135@8:<H?AXW  OmnibusBudgetReconciliationActof1993,Pub.L.No.10366,6002(a)(2)(A),(B),107Stat.312(largelycodifiedat  47U.S.C.332etseq.);see,e.g.,PagingSecondReportandOrder,12FCCRcdat2737.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  28    WCX` (#%'0*,.8135@8:<H?AXW  MMRCommentsat45.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  29    WCX` (#%'0*,.8135@8:<H?AXW  SeeImplementationofSections3(n)and332oftheCommunicationsActRegulatoryTreatmentofMobileServices,Third  ReportandOrder,GNDocketNo.93252,9FCCRcd7988,800103(1994),aff'donothergroundssubnom.SuncomMobile&Data,Inc. K v.FCC,87F.3d1386(D.C.Cir.1996).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  30    WCX` (#%'0*,.8135@8:<H?AXW  MariTELCommentsat2.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  31    WCX` (#%'0*,.8135@8:<H?AXW  MMRCommentsat58;seealso,e.g.,RossCommentsat8;RobertSassamanCommentsat1.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  32    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat16956.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  33    WCX` (#%'0*,.8135@8:<H?AXW  UTCCommentsat34;ITA/CICSCommentsat45;ITA/CICSReplyCommentsat23.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  34    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.90.283.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  35    WCX` (#%'0*,.8135@8:<H?AXW  See33C.F.R.Part3. dTable_A  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  36    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat16989.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  37    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.24.102,90.7;seealsoRandMcNallyCommercialAtlas&MarketingGuide3839(128thed.1997).Wehave  sometimesreferredtoEAsasBasicEconomicAreas.SeeRulemakingtoAmendParts1,2,21,and25oftheCommission'sRulesto K Redesignatethe27.529.5GHzFrequencyBand,ThirdNoticeofProposedRulemakingandSupplementalTentativeDecision,CCDocket 6 No.92297,11FCCRcd53,85(1995).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  38    WCX` (#%'0*,.8135@8:<H?AXW  RobertSassamanCommentsat1;UTCCommentsat34.Commentersparticularlyobjecttocreatingjustonelicensingarea  intheEighthU.S.CoastGuardDistrict,whichcoversNorthDakota,SouthDakota,Wyoming,Nebraska,Iowa,Colorado,Kansas,Missouri,Kentucky,WestVirginia,Tennessee,Arkansas,Oklahoma,NewMexico,Texas,Louisiana,Mississippi,Alabama,andparts 0 / ofPennsylvania,Ohio,Indiana,Illinois,Wisconsin,Minnesota,Florida,Georgia,andtheGulfofMexico,see33C.F.R.3.401. # ITA/CICSCommentsat45;RobertSassamanCommentsat1.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  39    WCX` (#%'0*,.8135@8:<H?AXW  AmendmentofPart90oftheCommission'sRulestoProvidefortheUseofthe220222MHzBandbythePrivateLandMobile  RadioService,ThirdReportandOrderandFifthNoticeofProposedRulemaking,PRDocketNo.89552,12FCCRcd10943,10982(1997) H (220MHzThirdReportandOrder);seeAmendmentofPart90oftheCommission'sRulestoProvidefortheUseofthe220222MHzBand 3 bythePrivateLandMobileRadioService,SecondMemorandumOpinionandOrderandThirdNoticeofProposedRulemaking,PRDocketNo. ~ 89552,11FCCRcd188,220(1995),aff'donothergroundssubnom.SuncomMobile&Data,Inc.v.FCC,87F.3d1386(D.C.Cir.1996).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  40    WCX` (#%'0*,.8135@8:<H?AXW  220MHzThirdReportandOrder,12FCCRcdat10982.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  41    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.27.6. ~ G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  42    WCX` (#%'0*,.8135@8:<H?AXW  AmendmentofPart90oftheCommission'sRulestoFacilitateFutureDevelopmentofSMRSystemsinthe800MHzFrequency  Band,SecondReportandOrder,PRDocketNo.93144,12FCCRcd19079,19088(1997).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  43    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat16988.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  44    WCX` (#%'0*,.8135@8:<H?AXW  Forexample,wenotethatifweweretoutilizeMajorTradingAreas,whicharelargerthanEAsorBTAs,wewoulddividethe  GreatLakesandthelowerMississippiRiverintosixlicensingareaseach,reducingthelikelihoodoftherebeingasinglelicenseethere.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  45    WCX` (#%'0*,.8135@8:<H?AXW  MariTELReplyCommentsat56.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  46    WCX` (#%'0*,.8135@8:<H?AXW  SuchEAsincludethoseneartheAtlanticOcean;thePacificOceanbelowtheArcticCircle;theGreatLakes;theGulfof  MexicoandGulfIntracoastalWaterway;theMississippiRiveruprivertoBrainerd,Minnesota;theMissouriRivertoSiouxCity,Iowa;theOhioRivertoPittsburgh,Pennsylvania;theTennesseeRivertoKnoxville,Tennessee;theArkansasRivertoTulsa,Oklahoma;theRedRivertoFulton,Arkansas;andtheColumbiaRivertoRichland,Washington.ThesearethechiefnavigableriversintheUnitedStates.SeeWebster'sNewGeographicalDictionary1191,1247(1977). q G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  47    WCX` (#%'0*,.8135@8:<H?AXW  Cf.47C.F.R.90.283(defininginlandareaswhereI/LTsharingispermittedasbeginning72116milesfromnavigable  waterways,dependingontheI/LTstation'spowerandantennaheight).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  48    WCX` (#%'0*,.8135@8:<H?AXW  LicensingbyinlandEAswillreducethesizeofthegeographicserviceareacorrespondingtotheEighthU.S.CoastGuard  District,asthecommentersrequested.Ofthe93EAslocatedentirelyormostlyintheEighthDistrict, 21areinlandEAs.Inland H EAsconstituteallofMontana,Wyoming,Nevada,Utah,Colorado,NewMexico;mostofArizona,Idaho,NorthDakota,andSouthDakota;andpartofOregon,California,Nebraska,Kansas,Oklahoma,Texas,andMinnesota.SeeAppendixD. 3 G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  49    WCX` (#%'0*,.8135@8:<H?AXW  InformationregardingtheVPCsandtheirconstituentEAsissetforthinAppendixDandin47C.F.R.80.371(c),asamended  herein.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  50    WCX` (#%'0*,.8135@8:<H?AXW  SeeMariTELCommentsat89;OrionCommentsat2.IIIA2  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  51    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcd1698990.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  52    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.80.773.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  53    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcd1698990.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  54    WCX` (#%'0*,.8135@8:<H?AXW  Id.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  55    WCX` (#%'0*,.8135@8:<H?AXW  Id.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  56    WCX` (#%'0*,.8135@8:<H?AXW  Id.at16990.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  57    WCX` (#%'0*,.8135@8:<H?AXW  SeeAPCOCommentsat2n.1.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  58    WCX` (#%'0*,.8135@8:<H?AXW  See,e.g.,MariTELCommentsat5.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  59    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.90.723(i),90.763(b)(1)(i).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  60    WCX` (#%'0*,.8135@8:<H?AXW  ITA/CICSCommentsat67;UTCCommentsat5.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  61    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.90.173(a).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  62    WCX` (#%'0*,.8135@8:<H?AXW  MariTELCommentsat6.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  63    WCX` (#%'0*,.8135@8:<H?AXW  MMRCommentsat9;seealsoRobertSassamanCommentsat12.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  64    WCX` (#%'0*,.8135@8:<H?AXW  MariTELReplyCommentsat8.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  65    WCX` (#%'0*,.8135@8:<H?AXW  Theauctionofpubliccoaststationgeographiclicensesisscheduledforthefourthquarterofthisyear.SeeFCCAnnounces  SpectrumAuctionSchedulefor1998,PublicNoticeNo.DA972497,at3(releasedNov.25,1997). W G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  66    WCX` (#%'0*,.8135@8:<H?AXW  SeeAmendmentofPart90oftheCommission'sRulestoFacilitateFutureDevelopmentofSMRSystemsinthe800MHzFrequency  Band,FirstReportandOrder,EighthReportandOrder,andSecondFurtherNoticeofProposedRulemaking,11FCCRcd1463,151314 K (1995),aff'donothergroundssubnom.ChadmooreCommunications,Inc.v.FCC,113F.3d235(D.C.Cir.1997)(800MHzSMROrder).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  67    WCX` (#%'0*,.8135@8:<H?AXW  MariTELCommentsat4.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  68    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.90.693(a).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  69    WCX` (#%'0*,.8135@8:<H?AXW  MariTEL'sMarylandoperationsprovideanexample.MariTEL'sBaltimorestationoperatesonChannels25and28,butits  CambridgestationoperatesonlyonChannel28.TheCambridgestation'sserviceareaoverlapstheBaltimorestation'sservicearea.TheserviceareaofMariTEL'sPointLookoutRidgefacility,whichoperatesonChannel25,overlapstheCambridgeserviceareaandasmallpartoftheBaltimoreservicearea.Thus,thethreestationswouldneedaChannel25combinedlicenseandaChannel28combinedlicense,becausethetwocombinedcontoursdiffer.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  70    WCX` (#%'0*,.8135@8:<H?AXW  See800MHzSMROrder,11FCCRcdat15141515.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  71    WCX` (#%'0*,.8135@8:<H?AXW  MariTELCommentsat67. ] G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  72    WCX` (#%'0*,.8135@8:<H?AXW  Cf.AmendmentofSubpartsAandEofPart95toImprovetheGeneralMobileRadioService(GMRS),ReportandOrder,PRDocket  No.87265,3FCCRcd6554,6560(1988).IIIA3  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  73    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat1699192.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  74    WCX` (#%'0*,.8135@8:<H?AXW  Id.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  75    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.80.21.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  76    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat16992.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  77    WCX` (#%'0*,.8135@8:<H?AXW  Id.at16993.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  78    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.80.57.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  79    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat16993.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  80    WCX` (#%'0*,.8135@8:<H?AXW  MurrayCohenCommentsat1.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  81    WCX` (#%'0*,.8135@8:<H?AXW  MariTELReplyCommentsat45.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  82    WCX` (#%'0*,.8135@8:<H?AXW  See,e.g.,47C.F.R.22.165,101.1009(a).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  83    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.90.173(n).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  84    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.90.687.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  85    WCX` (#%'0*,.8135@8:<H?AXW  MariTELPetitionat5.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  86    WCX` (#%'0*,.8135@8:<H?AXW  SeeOrionPetitiontoDenyat34(filedSept.9,1997).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  87    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.80.123(b).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  88    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.80.57.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  89    WCX` (#%'0*,.8135@8:<H?AXW  APCOCommentsat34;FCCACommentsat23;seealsoStateofMontanaCommentsat1.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  90    WCX` (#%'0*,.8135@8:<H?AXW  APCOCommentsat23;FCCACommentsat2.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  91    WCX` (#%'0*,.8135@8:<H?AXW  APCOCommentsat23;FCCACommentsat2.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  92    WCX` (#%'0*,.8135@8:<H?AXW  PublicSafetyWirelessAdvisoryComm.,FinalReport3233(Sept.1996).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  93    WCX` (#%'0*,.8135@8:<H?AXW  APCOCommentsat4(citingBalancedBudgetActof1997,3004(tobecodifiedat47U.S.C.337)).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  94    WCX` (#%'0*,.8135@8:<H?AXW  ITA/CICSCommentsat8;CoastGuardCommentsat2.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  95    WCX` (#%'0*,.8135@8:<H?AXW  MariTELReplyCommentsat11.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  96    WCX` (#%'0*,.8135@8:<H?AXW  See47U.S.C.337(asamendedbyBalancedBudgetAct,3004);ReallocationofTelevisionChannels6069,the746806MHz  Band,NoticeofProposedRuleMaking,ETDocketNo.97157,12FCCRcd14141,14145(1997).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  97    WCX` (#%'0*,.8135@8:<H?AXW  ITA/CICSCommentsat8;MariTELCommentsat8;RossCommentsat34.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  98    WCX` (#%'0*,.8135@8:<H?AXW  Publicsafetyusersarepersonsandentitieseligibleforlicensingunder47C.F.R.Part90,SubpartB.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  99    WCX` (#%'0*,.8135@8:<H?AXW  ThechannelsdesignatedineachinlandVPCaresetforthinAppendixE.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  100    WCX` (#%'0*,.8135@8:<H?AXW  SeeDevelopmentofOperational,TechnicalandSpectrumRequirementsforMeetingFederal,StateandLocalPublicSafety  AgencyCommunicationRequirementsThroughtheYear2010,SecondNoticeofProposedRulemaking,12FCCRcd17706(1997)(PublicSafety K SecondNPRM).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  101    WCX` (#%'0*,.8135@8:<H?AXW  MariTELCommentsat78.IIIA4IIIA4  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  102    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat1699495.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  103    WCX` (#%'0*,.8135@8:<H?AXW  Id."Substantialservice"generallyisdefinedasservicewhichissound,favorable,andsubstantiallyabovealevelof  mediocreservicewhichjustmightminimallywarrantrenewal.See,e.g.,47C.F.R.90.816(b)(1)(i).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  104    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat1699495.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  105    WCX` (#%'0*,.8135@8:<H?AXW  MariTELCommentsat9;MMRCommentsat10;seealsoITA/CICSCommentsat10."Navigablewaters"aretheterritorialwaters  oftheUnitedStates,anditsinternalwatersthatareorhavebeensusceptibleforuseashighwaysforinterstateorforeigncommerce.47C.F.R.80.5. _ G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  106    WCX` (#%'0*,.8135@8:<H?AXW  MMRproposesrequiringservicetotheregion'snavigablewaterwayswithinoneyear.MMRCommentsat10.MariTELproposes  thatgeographicarealicenseesberequiredtoconstructatleasttenpercentoftheirauthorizedchannelsalongeightypercentoftheregion'snavigablewaterwayswithinoneyearofauthorization,andfiftypercentofthechannelsalongeightypercentofthewaterwayswithintenyears.MariTELCommentsat10.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  107    WCX` (#%'0*,.8135@8:<H?AXW  See800MHzSMROrder,11FCCRcdat1502.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  108    WCX` (#%'0*,.8135@8:<H?AXW  Asdefinedinnote46,supra.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  109    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.80.225(b),80.905(a)(1).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  110    WCX` (#%'0*,.8135@8:<H?AXW  See33C.F.R.2.0520(b),Part80.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  111    WCX` (#%'0*,.8135@8:<H?AXW  MMRCommentsat10.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  112    WCX` (#%'0*,.8135@8:<H?AXW  BRCReplyCommentsat3. 9 G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  113    WCX` (#%'0*,.8135@8:<H?AXW  See,e.g.,ReplacementofPart90byPart88toRevisethePrivateLandMobileRadioServicesandModifythePolicies  GoverningThem,ReportandOrderandFurtherNoticeofProposedRulemaking,PRDocketNo.92235,10FCCRcd10076,10095(1995), K onreconsideration,MemorandumOpinionandOrder,11FCCRcd17676(1996)(PLMRReportandOrder). ? G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  114    WCX` (#%'0*,.8135@8:<H?AXW  See,e.g.,AmendmentoftheCommission'sRulestoEstablishNewPersonalCommunicationsServices,ThirdReportandOrder,  GENDocketNo.90314,9FCCRcd1337,1341,135960,onreconsideration,MemorandumOpinionandOrder,9FCCRcd7805(1994),aff'd K onothergroundssubnom.FreemanEng'gAssocs.,Inc.v.FCC103F.3d169(D.C.Cir.1997).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  115    WCX` (#%'0*,.8135@8:<H?AXW  See220MHzThirdReportandOrder,12FCCRcdat11020.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  116    WCX` (#%'0*,.8135@8:<H?AXW  ITA/CICSCommentsat10;seeITA/CICSReplyCommentsat3;seealsoPetitionforRuleMakingSubmittedbytheLandMobile  CommunicationsCouncil,RM9262(filedApr.22,1998)(proposingallocationofadditionalspectrumforPLMRuse).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  117    WCX` (#%'0*,.8135@8:<H?AXW  SeealsoMariTELReplyCommentsat12.IIIA5  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  118    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcd1699596.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  119    WCX` (#%'0*,.8135@8:<H?AXW  Id.at16996.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  120    WCX` (#%'0*,.8135@8:<H?AXW  Id.at16995.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  121    WCX` (#%'0*,.8135@8:<H?AXW  Id.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  122    WCX` (#%'0*,.8135@8:<H?AXW  Id.at16997.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  123    WCX` (#%'0*,.8135@8:<H?AXW  Id.at1699697.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  124    WCX` (#%'0*,.8135@8:<H?AXW  MurrayCohenCommentsat1.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  125    WCX` (#%'0*,.8135@8:<H?AXW  SeeGeographicPartitioningandSpectrumDisaggregationbyCommercialRadioServicesLicensees,ReportandOrderand  FurtherNoticeofProposedRulemaking,WTDocketNo.96148,11FCCRcd21831,21860(1996)(PartitioningandDisaggregationReport K andOrder).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  126    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.1.924. X G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  127    WCX` (#%'0*,.8135@8:<H?AXW  WehaveadoptedaNoticeofProposedRulemakingproposingaUniversalLicensingSystem(ULS)forwirelessapplications.  BiennialRegulatoryReviewAmendmentofParts0,1,13,22,24,26,27,80,87,90,95,97,and101oftheCommission'sRulestoFacilitatetheDevelopmentandUseoftheUniversalLicensingSystemintheWirelessTelecommunicationsServices,NoticeofProposed 0 Rulemaking,WTDocketNo.98  20,FCC983(releasedMar.18,1998).IftheULSrulesareadoptedasproposed,FCCForm603willbe { usedforrequestingapprovalofassignmentoflicenses,includingpartitioninganddisaggregationrequests.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  128    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.80.19. a G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  129    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.1.924(b)(2)(iv).IftheULSrulesareadoptedasproposed,seesupranote127,FCCScheduleGwillbeusedfor  requestingpubliccoaststationlicenses. # G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  130    WCX` (#%'0*,.8135@8:<H?AXW  See39GHzReportandOrder,12FCCRcdat18635;PartitioningandDisaggregationReportandOrder,11FCCRcdat21858.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  131    WCX` (#%'0*,.8135@8:<H?AXW  MariTELCommentsat11.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  132    WCX` (#%'0*,.8135@8:<H?AXW  SeePartitioningandDisaggregationReportandOrder,11FCCRcdat21857.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  133    WCX` (#%'0*,.8135@8:<H?AXW  SeeAmendmentofPart1oftheCommission'sRulesCompetitiveBidding,ThirdReportandOrderandSecondFurtherNotice  ofProposedRuleMaking,WTDocketNo.9782,13FCCRcd374,405(1997)(Part1ThirdReportandOrder);seealso47C.F.R. K 1.2111(c).IIIA6  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  134    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat16997.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  135    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.80.385(b).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  136    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat16998.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  137    WCX` (#%'0*,.8135@8:<H?AXW  MurrayCohenCommentsat1. > G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  138    WCX` (#%'0*,.8135@8:<H?AXW  SeeFinalActsoftheWorldRadiocommunicationConference(WRC97),Geneva,1997(amendingITURadioRegulationsArt.S52,  App.S18n.e).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  139    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat16998.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  140    WCX` (#%'0*,.8135@8:<H?AXW  CoastGuardCommentsat5;RossCommentsat57;RossReplyCommentsat23.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  141    WCX` (#%'0*,.8135@8:<H?AXW  MariTELCommentsat12;MariTELReplyCommentsat1214;MMRCommentsat9.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  142    WCX` (#%'0*,.8135@8:<H?AXW  SeeLetterfromDavidE.Horowitz,Chief,PublicSafetyandPrivateWirelessDivision,WirelessTelecommunicationsBureau,  toJ.D.Hersey,Jr.,Chief,SpectrumManagementDivision,UnitedStatesCoastGuard(August29,1997).Orionopposesaddressingthepetitioninthisproceeding,onthegroundsthattheissuesraisedthereinshouldnotdelayenactmentoftheproposalsintheSecond 3 FurtherNotice.OrionPetitiontoSetAsideat2(filedSept.9,1997);seealsoMariTELReplyCommentsat1416.Becauseour ~ considerationoftheCoastGuardPetitiondidnotdelaythereleaseofthisThirdReportandOrder,thePetitiontoSetAsideis i denied.Cf.PublicSafetySecondNPRM,12FCCRcdat17785.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  143    WCX` (#%'0*,.8135@8:<H?AXW  CoastGuardPetitionforRuleMakingat23(filedAug.4,1997)(CoastGuardPetition).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  144    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.80.57.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  145    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.2.106n.G5.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  146    WCX` (#%'0*,.8135@8:<H?AXW  CoastGuardPetitionat1. ) G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  147    WCX` (#%'0*,.8135@8:<H?AXW  RossCommentsat23;RossReplyCommentsat12;RobertSassamanCommentsat2;AmericanWaterwaysOperatorsCommentsat  1.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  148    WCX` (#%'0*,.8135@8:<H?AXW  CoastGuardPetitionat2,7.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  149    WCX` (#%'0*,.8135@8:<H?AXW  MariTELSupplementalCommentsat23. I |!  2C K $$KC--C&l&CC&l&&C&l  CS&C&lWCX` (#%'0*,.8135@8:<H?AXW2  150    SeeH.R.Rep.No.236,105thCong.,1stSess.(1997);S.Rep.No.55,105thCong.,1stSess.(1997);H.R.Rep.No.188,105th  Cong.,1stSess.(1997).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  151    WCX` (#%'0*,.8135@8:<H?AXW  H.R.Rep.No.236,105thCong.,1stSess.(1997). # G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  152    WCX` (#%'0*,.8135@8:<H?AXW  IRACisresponsibleforfrequencycoordinationeffortsonbehalfofthefederalgovernment,andiscomposedof  representativesfromvariousgovernmentagencies.Inthisconnection,IRACadvisestheNationalTelecommunicationandInformationAdministrationconcerningspectrummanagementissuesandcoordinatesspectrumissuesamonggovernmentusersandwiththeCommission.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  153    WCX` (#%'0*,.8135@8:<H?AXW  SeeFinalActsofWRC97(amendingITURadioRegulationsApp.S18n.l).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  154    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.80.371(c).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  155    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.2.106n.G5.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  156    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.80.5. a G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  157    WCX` (#%'0*,.8135@8:<H?AXW  BecausetheUnitedStateswillnotbeusingtheAISchannelsdesignatedbytheITU,theCoastGuardwillneedtoinform  foreignshipsoftheapplicableAISchannelsineachregion.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  158    WCX` (#%'0*,.8135@8:<H?AXW  SecondReportandOrder,12FCCRcdat16986.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  159    WCX` (#%'0*,.8135@8:<H?AXW  MariTELPetitionforReconsiderationat56.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  160    WCX` (#%'0*,.8135@8:<H?AXW  SecondReportandOrder,12FCCRcdat16986.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  161    WCX` (#%'0*,.8135@8:<H?AXW  NoticeofInquiry,7FCCRcdat7868.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  162    WCX` (#%'0*,.8135@8:<H?AXW  RefarmingSecondReportandOrder,12FCCRcdat1431718.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  163    WCX` (#%'0*,.8135@8:<H?AXW  SeePLMRReportandOrder,10FCCRcdat1013841.IIIA7OPFLEX  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  164    WCX` (#%'0*,.8135@8:<H?AXW  Inthiscontext,"broadbandCMRSlicensees"includedPCS,cellular,andSMR,while"narrowbandCMRSlicensees"included  paging,narrowbandPCS,commercial220MHzservice,andforprofitinterconnectedBusinessRadioService.SeeAmendmentofthe H Commission'sRulestoPermitFlexibleServiceOfferingsintheCommercialMobileRadioService,FirstReportandOrderandFurther 3 NoticeofProposedRuleMaking,WTDocketNo.966,11FCCRcd8965,8976(1996).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  165    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat16999.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  166    WCX` (#%'0*,.8135@8:<H?AXW  SeeMariTELCommentsat13;seealsoOrionCommentsat2.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  167    WCX` (#%'0*,.8135@8:<H?AXW  SeeMariTELCommentsat13.IIIA8  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  168    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat16999.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  169    WCX` (#%'0*,.8135@8:<H?AXW  Id.at1699917000.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  170    WCX` (#%'0*,.8135@8:<H?AXW  See47U.S.C.332(d)(1).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  171    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat1699917000.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  172    WCX` (#%'0*,.8135@8:<H?AXW  Id.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  173    WCX` (#%'0*,.8135@8:<H?AXW  SeeMariTELCommentsat14.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  174    WCX` (#%'0*,.8135@8:<H?AXW  SeeCMRSSecondReportandOrder,9FCCRcdat1461. 3 G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  175    WCX` (#%'0*,.8135@8:<H?AXW  See47U.S.C.309(d)(1).GeographicarealicenseesauthorizedtoprovidePMRSornoncommoncarrierserviceswillbe  subjecttoPart80ofourrules.GeographicarealicenseesauthorizedtoprovideCMRSorcommoncarrierserviceswillalsobesubjecttoourTitleIIrulesapplicabletootherCMRSproviders.SeeCMRSSecondReportandOrder,9FCCRcdat147585.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  176    WCX` (#%'0*,.8135@8:<H?AXW  See,e.g.,47U.S.C.312(a),503(b).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  177    WCX` (#%'0*,.8135@8:<H?AXW  47U.S.C.160.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  178    WCX` (#%'0*,.8135@8:<H?AXW  MariTELCommentsat14.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  179    WCX` (#%'0*,.8135@8:<H?AXW  SeeCMRSSecondReportandOrder,9FCCRcdat1475. c G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  180    WCX` (#%'0*,.8135@8:<H?AXW  SeeHyperionTelecommunications,Inc.,MemorandumOpinionandOrderandNoticeofProposedRulemaking,CCB/CPDNo.963,  12FCCRcd8596,8607(1997)("WhilewearerequiredunderSection10tograntpetitionsforforbearancewhenweareabletomaketherequisitestatutoryfindings,petitionersmustsupportsuchrequestswithmorethanbroad,unsupportedallegationsinorderforustoexercisethatstatutoryauthority.").  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  181    WCX` (#%'0*,.8135@8:<H?AXW  CMRSSecondReportandOrder,9FCCRcdat147585.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  182    WCX` (#%'0*,.8135@8:<H?AXW  PersonalCommunicationsIndustryAssociation'sBroadbandPersonalCommunicationsServicesAlliance'sPetitionfor  ForbearanceforBroadbandPersonalCommunicationsServices,MemorandumOpinionandOrderandNoticeofProposedRulemaking,WT H DocketNo.98100,FCC98134(releasedJuly2,1998).IIIA94B7  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  183    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.80.303(a).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  184    WCX` (#%'0*,.8135@8:<H?AXW  47C.F.R.80.303(b).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  185    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat1700001.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  186    WCX` (#%'0*,.8135@8:<H?AXW  SeeCoastGuardCommentsat6.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  187    WCX` (#%'0*,.8135@8:<H?AXW  AmendmentofPart81oftheCommission'sRulestoSpecifytheCircumstancesunderwhichClassIIIBPublicCoastStations  MayBeExemptedfromtheWatchRequirementon156.8MHz,ReportandOrder,PRDocketNo.7968,81FCC2d340,343(1980).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  188    WCX` (#%'0*,.8135@8:<H?AXW  SeeCoastGuardCommentsat6.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  189    WCX` (#%'0*,.8135@8:<H?AXW  MMRCommentsat11.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  190    WCX` (#%'0*,.8135@8:<H?AXW  SeeMariTELCommentsat37;OrionPetitiontoDenyat3.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  191    WCX` (#%'0*,.8135@8:<H?AXW  SecondReportandOrder,12FCCRcdat16959.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  192    WCX` (#%'0*,.8135@8:<H?AXW  MariTELPetitionat34.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  193    WCX` (#%'0*,.8135@8:<H?AXW  OrionPetitiontoDenyat3.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  194    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat1697677.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  195    WCX` (#%'0*,.8135@8:<H?AXW  CoastGuardReplyCommentsat1.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  196    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.80.179(d)(1996).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  197    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat17011(citingCMRSSecondReportandOrder,9FCCRcdat1448). m G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  198    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat17011(citingCompetitiveBiddingSecondReportandOrder,9FCCRcd2348);47C.F.R.  1.2102(a)(2)(citing47C.F.R.Part80,SubpartJ)).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  199    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat1701112.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  200    WCX` (#%'0*,.8135@8:<H?AXW  See47U.S.C.309(j)(asamendedbyBalancedBudgetAct,3002).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  201    WCX` (#%'0*,.8135@8:<H?AXW  47U.S.C.309(j)(2)(1996).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  202    WCX` (#%'0*,.8135@8:<H?AXW  47U.S.C.309(j)(1)(asamendedbyBalancedBudgetAct,3002)(emphasisadded).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  203    WCX` (#%'0*,.8135@8:<H?AXW  MariTELCommentsat7(urgingtheCommissiontoactasexpeditiouslyaspossibletolicensethisspectrumusingcompetitive  biddingbecauseitisthemostefficientandspeedymeansoflicensingmultiplechannelsonageographicbasis);MariTELReplyCommentsat3;OrionCommentsat10;BRCReplyCommentsatn.2(notingthatundertheBalancedBudgetAct,"theFCCmustuseauctionstoawardinitiallicensesandconstructionpermitsinvirtuallyallcaseswheremutualexclusivityexists").  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  204    WCX` (#%'0*,.8135@8:<H?AXW  GlobeWirelessCommentsat34;RobertSassamanCommentsat1.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  205    WCX` (#%'0*,.8135@8:<H?AXW  See47U.S.C.309(j)(1),309(j)(2)(asamendedbyBalancedBudgetAct,3002).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  206    WCX` (#%'0*,.8135@8:<H?AXW  Seesupranote100.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  207    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat17011(citingAmendmentoftheCommission'sCompetitiveBiddingRules,OrderandNotice  ofProposedRulemaking,WTDocketNo.9782,12FCCRcd5686(1997)).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  208    WCX` (#%'0*,.8135@8:<H?AXW  Id.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  209    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat17012(citingImplementationofSection309(j)oftheCommunicationsActCompetitive  Bidding,SecondMemorandumOpinionandOrder,PPDocketNo.93253,9FCCRcd7245,726869(1994));seealsoPart1ThirdReportand K Order,13FCCRcdat388.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  210    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat17012.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  211    WCX` (#%'0*,.8135@8:<H?AXW  Id.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  212    WCX` (#%'0*,.8135@8:<H?AXW  Id.at1689890.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  213    WCX` (#%'0*,.8135@8:<H?AXW  47U.S.C.309(j)(4)(D).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  214    WCX` (#%'0*,.8135@8:<H?AXW  47U.S.C.309(j)(3)(B).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  215    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat17012. D G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  216    WCX` (#%'0*,.8135@8:<H?AXW  Id.at1701213(citingUnitedStatesv.Virginia,116S.Ct.2264(1996);AdarandConstructorsv.Pea,115S.Ct.2097  (1995)).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  217    WCX` (#%'0*,.8135@8:<H?AXW  SeePart1ThirdReportandOrder,13FCCRcdat37781.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  218    WCX` (#%'0*,.8135@8:<H?AXW  See,e.g.,id.at44849,45455;seealso47C.F.R.0.131(c),0.331,0.332.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  219    WCX` (#%'0*,.8135@8:<H?AXW  Seesupranote3.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  220    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat17012.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  221    WCX` (#%'0*,.8135@8:<H?AXW  ThisformulationisconsistentwithourdeterminationinthePart1ThirdReportandOrderthatourservicespecificsmall  businessdefinitionswillbeexpressedintermsofaveragegrossrevenuesfortheprecedingthreeyears"nottoexceed"particularamounts.SeePart1ThirdReportandOrder,13FCCRcdat38889.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  222    WCX` (#%'0*,.8135@8:<H?AXW  MariTELCommentsat1516(notingthesizestandardsemployedinpaging,theupper10MHzof800MHzSMR,and900MHzSMR).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  223    WCX` (#%'0*,.8135@8:<H?AXW  OrionCommentsat10;MurrayCohenCommentsat1.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  224    WCX` (#%'0*,.8135@8:<H?AXW  SeePart1ThirdReportandOrder,13FCCRcdat388. | G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  225    WCX` (#%'0*,.8135@8:<H?AXW  MariTELCommentsat15(citingImplementationofSection309(j)oftheCommunicationsActCompetitiveBidding,Fifth  MemorandumOpinionandOrder,PPDocketNo.93253,10FCCRcd403(1994)).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  226    WCX` (#%'0*,.8135@8:<H?AXW  SeePart1ThirdReportandOrder,13FCCRcdat388.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  227    WCX` (#%'0*,.8135@8:<H?AXW  Seeid.at38889.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  228    WCX` (#%'0*,.8135@8:<H?AXW  See13C.F.R.121.201,StandardIndustrialClassifications60216082&n.7.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  229    WCX` (#%'0*,.8135@8:<H?AXW  See15U.S.C.632(c). / G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  230    WCX` (#%'0*,.8135@8:<H?AXW  WenotethatinthePart1ThirdReportandOrder,weexemptedIndianTribesandAlaskaRegionandVillageCorporationsfrom  thedefinitionofaffiliatefoundinPart1,SubpartQofourrules.SeePart1ThirdReportandOrder,13FCCRcdat39293.This K definitionwillapplyinthepubliccoastauction.See47C.F.R.1.2111(b)(4)(xi).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  231    WCX` (#%'0*,.8135@8:<H?AXW  SeePart1ThirdReportandOrder,13FCCRcdat47778. | |!  2C K $$KC--C&l&CC&l&&C&l  CS&C&lWCX` (#%'0*,.8135@8:<H?AXW2  232    SeeAmendmentofParts1,2,21,and25oftheCommission'sRulestoRedesignatethe27.529.5GHzFrequencyBand,to  Reallocatethe29.530.0GHzFrequencyBand,toEstablishRulesandPoliciesforLocalMultipointDistributionServiceandforFixedSatelliteServices,SecondReportandOrder,OrderonReconsideration,andFifthNoticeofProposedRulemaking,CCDocketNo.92297, 3 12FCCRcd12545,1269293(1997);AmendmentofPart90oftheCommission'sRulestoFacilitateFutureDevelopmentofSMRSystems ~ inthe800MHzFrequencyBand,FCC97-223,SecondReportandOrder,PRDocketNo.93144,12FCCRcd19079,19169(1997). i G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  233    WCX` (#%'0*,.8135@8:<H?AXW  SeeEllisThompsonCorp.,76Rad.Reg.2d(P&F)1125,112728(1994)("EllisThompson"),inwhichtheCommission  identifiedthefollowingfactorsusedtodeterminecontrolofabusiness:(1)useoffacilitiesandequipment;(2)controlofdaytodayoperations;(3)controlofpolicydecisions;(4)personnelresponsibilities;(5)controloffinancialobligations;and(6)receiptofmoniesandprofits.SeealsoIntermountainMicrowave,24Rad.Reg.(P&F)983(1963);StephenF.Sewell,Assignmentsand { TransfersofControlofFCCAuthorizationsUnderSection309(d)oftheCommunicationsActof1934,43Fed.Comm.L.J.277(1991).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  234    WCX` (#%'0*,.8135@8:<H?AXW  SeePart1ThirdReportandOrder,13FCCRcdat478.  |!  2C K $$KC--C&l&CC&l&&C&l  CS&C&lWCX` (#%'0*,.8135@8:<H?AXW2  235    See47C.F.R.1.2110(b)(4)(v);cf.47C.F.R.24.709(b)(7).  |!  2C K $$KC--C&l&CC&l&&C&l  CS&C&lWCX` (#%'0*,.8135@8:<H?AXW2  236    Wenote,however,thatinseekingcommentregardingtheauctionofinitiallicensesforcertainbroadcaststations,the  Commissionhasproposedstricterattributionstandardsandeligibilityrequirementsforapplicantsseekingtoqualifyforminoritybasedprovisions.SeeImplementationofSection309(j)oftheCommunicationsActCompetitiveBiddingforCommercialBroadcast 0 andInstructionalTelevisionFixedServiceLicenses,NoticeofProposedRulemaking,MMDocketNo.97234,12FCCRcd22363,22399401 { (1997).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  237    WCX` (#%'0*,.8135@8:<H?AXW  Part1ThirdReportandOrder,13FCCRcdat419.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  238    WCX` (#%'0*,.8135@8:<H?AXW  See47C.F.R.1.2112.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  239    WCX` (#%'0*,.8135@8:<H?AXW  MariTELCommentsat34;RossCommentsat3.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  240    WCX` (#%'0*,.8135@8:<H?AXW  BRCReplyCommentsat2.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  241    WCX` (#%'0*,.8135@8:<H?AXW  See,e.g.,AmendmentofParts21and74oftheCommission'sRuleswithRegardtoFilingProceduresintheMultipoint  DistributionServiceandintheInstructionalTelevisionFixedService,ReportandOrder,PRDocketNo.94131,10FCCRcd9589,9607 K (1995)(itisinthepublicinteresttoencouragethewidestpossiblevarietyofapplicantsbynotgivingapreferencetoincumbents,fornewentrantmayvaluethespectrummorehighlythanexistinglicensee).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  242    WCX` (#%'0*,.8135@8:<H?AXW  47U.S.C.309(j)(4)(D).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  243    WCX` (#%'0*,.8135@8:<H?AXW  Part1ThirdReportandOrder,13FCCRcdat40203.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  244    WCX` (#%'0*,.8135@8:<H?AXW  Id.at404.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  245    WCX` (#%'0*,.8135@8:<H?AXW  Id.at39798. | |!  2C K $$KC--C&l&CC&l&&C&l  CS&C&lWCX` (#%'0*,.8135@8:<H?AXW2  246    Id.at38687&n.36(citing,e.g.,Section257ProceedingtoIdentifyandEliminateMarketEntryBarriersforSmall  Business,Report,GNDocketNo.96113,12FCCRcd16802(1997)).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  247    WCX` (#%'0*,.8135@8:<H?AXW  See47U.S.C.309(j)(4)(C),(D).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  248    WCX` (#%'0*,.8135@8:<H?AXW  SeePart1ThirdReportandOrder,13FCCRcdat386.IVIVAIVA  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  249    WCX` (#%'0*,.8135@8:<H?AXW  SecondFurtherNotice,12FCCRcdat17015.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  250    WCX` (#%'0*,.8135@8:<H?AXW  Id. 6 G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  251    WCX` (#%'0*,.8135@8:<H?AXW  ApplicationsforVeryHighFrequency(VHF)PublicCoastSpectruminthe156162MHzBands,Order,13FCCRcd5240,5241(WTB  1998).  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  252    WCX` (#%'0*,.8135@8:<H?AXW  See,e.g.,PagingSecondReportandOrder,12FCCRcdat2739.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  253    WCX` (#%'0*,.8135@8:<H?AXW  UTCCommentsat4;ITA/CICSCommentsat56.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  254    WCX` (#%'0*,.8135@8:<H?AXW  Part1ThirdReportandOrder,13FCCRcdat484.IVB  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  255    WCX` (#%'0*,.8135@8:<H?AXW  SecondReportandOrder,12FCCRcdat1697677.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  256    WCX` (#%'0*,.8135@8:<H?AXW  Id.  G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  257    WCX` (#%'0*,.8135@8:<H?AXW  MMRCommentsat8. = G$  2C K $$KC--C&l&CC&l&&C&l2CS&C&l  258    WCX` (#%'0*,.8135@8:<H?AXW  MCITelecommunicationsCorp.v.FCC,57F.3d1136,1142(D.C.Cir.1995);AFLCIOv.Donovan,757F.2d330,33940(D.C.  Cir.1985).IVC5BIVDIVEIVF5G  '  2C K $$KC--C&l&CC&l&&C&l  WCX` (#%'0*,.8135@8:<H?AXW@dd" FederalCommunicationsCommission O(#FCC9851   ?iX' }xdEtx? u Table_B dTable_C&0 d dTable_DTable_ETable_F ##CC&d#Table_GTable_HTable_I@ABEFGHI 5u{92Right-Aligned Paragraph NumbersI.A.1.a.(1)(a)i)a)9:;J<=>? 5u{93Right-Aligned Paragraph NumbersI.A.1.a.(1)(a)i)a)12345678 5u{94Right-Aligned Paragraph NumbersI.A.1.a.(1)(a)i)a))*+,-./0 5u{95Right-Aligned Paragraph NumbersI.A.1.a.(1)(a)i)a)!"#$%&'( CyParagraph1. a. i. (1) (a) (i) 1) a)I.A.1.a.(1)(a)i)a) =W]ciowAgendaAgenda ItemsI.A.1.a.(1)(a)i)a)  5u{96Right-Aligned Paragraph NumbersI.A.1.a.(1)(a)i)a)'dxd Level 1 Level 2 Level 3 Level 4 Level 5(2$ |!  2C K $#C--C&l&CC&l&&C&l  ($A<< g Level 1 Level 2 Level 3 Level 4 Level 5($A<< g Level 1 Level 2 Level 3 Level 4 Level 5($(2$ |!  2C K $#C--C&l&CC&l&&C&l  C<< g Level 1 Level 2 Level 3 Level 4 Level 5($A<< g Level 1 Level 2 Level 3 Level 4 Level 5($M << ddUU3|f'\  `TimesRoman]\  PCP'\  `TimesRoman&f\  PC&P<6X9`("Courier NewTTd6X@`7@4D4A`ArialTTTTX:}D4P XP*X   `*Times New RomanTTXFxX  Pg9CXP*o> A`ArialTTnTTCo> PfQP" [  `*Times New RomanTTX)a [ PfQXP! `>  `6Times New RomanItalicTTX)^ `> XifQXX#~>  *Times New RomanTTcTTT~> pfQp)o> A`ArialTTomanTTcTTX)ao> PfQXP$ [  `*Times New RomanTTcTTw [ PfQP<A $ArialTTTTtalicTTX/x PX\  `*Times New RomanTTcTTV\  P!UP'\  `TimesRomannTTcTTXo\  PCXP/G A,ArialBold ItalicTTTTG }&Y'9>  `*Times New RomanTTTT\9> (P'YP/> AArialBoldTTTTTT> }(Y/> AArialBoldTTTTTTb> }*Y.o> A`ArialTTomanTTTTo> P},YP-o> A`ArialTTomanTTTTXAlo> P}.YXP)"zAArialBoldTTTTTTr"z0C,xA`ArialTTomanTTTTXX}xP27XP%2A`ArialTTomanTTTTI2P3QP,xA`ArialTTomanTTTT&&sxP97&P%2A`ArialTTnTTTTXXX2PCQXP'\  `TimesRomannTTTT` \\  PC` P(|$  2C K $#C--C&l&CC&l&&C&l# e37=CIQYag1.a.i.(1)(a)(i)1)a)  '  2C K $$KC--&l&C&l&&C&l  @dd" FederalCommunicationsCommissiont t N(#FCC98151   ?iX' }xdEtx? u '\  `TimesRoman  '  2C K $$KC--&l&C&l&&C&l  @dd" FederalCommunicationsCommissiont t N(#FCC98151   ?iX' }xdEtx? u '\  `TimesRoman'C Z 6Times New Roman RegularHP LaserJet 5Si/5Si MX PSHPLJ5SI2,,,,,,,,0pgjjmoqtva@$x |!  2C K $#C--C&&CC&&&C&  X7CC&&dd7  ?@@@YY- &a&&C&Beforethe + @"FederalCommunicationsCommission@77'Washington,D.C.20554   IntheMatterof@2) W , @2)AmendmentoftheCommission'sRules@2)  PRDocketNo.92257   ConcerningMaritimeCommunications@2)  RM7956,8031,8352     THIRDREPORTANDORDERAND   MEMORANDUMOPINIONANDORDER       pXӀ Adopted: July6,1998 p Released: July9,1998 E   BytheCommission:     @*TABLEOFCONTENTSO(#Paragraph]IX` x (#%'0*,.8135@8:<H?Ah] A  8   I.INTRODUCTIONANDEXECUTIVESUMMARY#p"p"U(#.1  #1 v 8   II.BACKGROUND#p"p"U(#.   #3 7  8   III.DISCUSSION#p"p"U(#.    #8  8  0`     A. ` VHFPublicCoastStationSpectrum#p"p"U(#.8` ` #8 m 8  0`   0 ` `  ` 1. Geographicarealicensing#p"p"U(#.6 #9 c8 8  0`   0 ` `  ` 2. Serviceareas#""T(#.vv* #12 . 8  0`   0 ` `  ` 3. Treatmentofincumbentlicensees#""T(#.zz> #17  8  0`   0 ` `  ` 4. Licensing#B"B"U(#.& #24  8  0`   0 ` `  ` 5. Coveragerequirements#B"B"U(#.LL2 #33  d  8  0`   0 ` `  ` 6. Partitioninganddisaggregation#B"B"U(#.< #37 Z!/! 8  0`   0 ` `  ` 7. Technicalflexibility#B"B"U(#.xx2 #44 %"" 8  0`   0 ` `  ` 8. Operationalflexibility#B"B"U(#.4 #51 "# 8  0`   0 ` `  ` 9. Regulatorystatus#B"B"U(#.. #53 #$ cCX` (#%'0*,.8135@8:<H?AXx Xc   ` 10. SafetywatchB"B"U(#.``)54 $[%   0 `  B. ` CompetitiveBiddingProceduresforthePublicCoastService#B"B"U(#.R` (#` (##59 Q%&&    ` 1. UseofCompetitiveBiddingB"B"U(#.759 &' 8  0`   0 ` `  ` 2. CompetitiveBiddingIssues#B"B"U(#.7 #62 &( 8      8   IV.PROCEDURALMATTERS#B"B"U(#.>>"  #74 }(R!* 8  0`     A. ` SuspensionofAcceptanceandProcessingofApplications#p"p"V(#.N` ` #74 H)"+ 8  0`     B. ` AdditionalMatters#B"B"U(#.)` ` #77 *", 8  0`     C. ` RegulatoryFlexibilityAct#B"B"U(#.1` ` #78 *#- 8  0`     D. ` PaperworkReductionActof1995Analysis#B"B"U(#.?` ` #79 +~$. 8  0`     E. ` OrderingClauses#B"B"U(#.RR'` ` #80 t,I%/ 8  0`     F. ` ContactforInformation#p"p"V(#.  .` ` #89 ?-&0   .'2  !!T(# Page  + 8   APPENDICES#B"B"U(#.    #38  8  0`     APPENDIXALISTOFCOMMENTERS#B"B"U(#.0` ` #38  8  APPENDIXBFINALREGULATORYFLEXIBILITYANALYSIS#B"B"U(#.C  #39  a 8  0`     APPENDIXCVHFCOASTSTATIONINFORMATION#B"B"U(#."";` ` #41 W , 8  0`     APPENDIXDVHFPUBLICCOASTAREA(VPC)INFORMATION#B"B"U(#.E` ` #42 "  8  0`     APPENDIXEPUBLICSAFETYSETASIDE#B"B"U(#.5` ` #45   8  0`     APPENDIXFFINALRULES#B"B"U(#.>>)` ` #47       X @   I.INTRODUCTIONANDEXECUTIVESUMMARY    +    B  C 2  1  .3   C  C  D  D  ` IntheSecondReportandOrderinthisproceedingF E  1      ׀theCommissionadoptedrulestopromote  operational,technical,andregulatoryflexibilityintheMaritimeServices.H E  2      ׀IntheSecondFurtherNoticeof  ProposedRulemakinginthisproceedingtheCommissionsoughtcommentonproposalstosimplifythe  a licensingprocessforveryhighfrequency(VHF)publiccoaststations.I E  3      ׀InthisThirdReportandOrderand W , MemorandumOpinionandOrder,weaddressthepetitionforreconsiderationofourdecisionsintheSecond "  ReportandOrderfiledbyWJGMariTEL(MariTEL).J E  4      ׀Wealsoadoptrulesaimedatstreamliningour   licensingprocessforVHFpubliccoaststations.Weconcludethatthepublicinterestwouldbeservedbyprovidinglicenseesmoreflexibilityintheuseofmaritimespectrum,whilepreservingthisinternationallyallocatedradioservice'scorepurposeofpromotingthesafetyoflifeandpropertyatsea.Moreover,webelievethatthesechangeswill(1)increasecompetitionintheprovisionoftelecommunicationsservices;(2)increasethetypesoftelecommunicationsservicesavailabletovesseloperators;(3)promotemoreefficientuseofmaritimespectrum;(4)reduceregulatoryandeconomicburdensoncoaststationlicensees;and(5)allowmaritimecommercialmobileradioservice(CMRS)providerstomorequicklyrespondtomarketdemand.Themajorrulechangesweadopttodayaresummarizedbelow.0  0` (#(#WemodifyourrulestoadoptageographicarealicensingapproachforVHFpubliccoast   stations.Wedesignateninelicensingregionsnearmajorwaterways(definedasmaritimeVHFPublicCoastareas(VPCs)),basedroughlyonU.S.CoastGuardDistricts,andthirtythree  inlandlicensingregions(definedasinlandVPCs),basedonEconomicAreas.We < authorizeasinglelicenseeforallcurrentlyunassignedVHFpubliccorrespondencechannelsineachlicensingregioninlieuofthesitebasedapproachpresentlyused. ` (#` (# 0  0` (#(#WepermitthecontinuedoperationofincumbentVHFpubliccoaststationlicenseesand h= privatelandmobileradio(PLMR)licenseessharingmaritimespectrumininlandareas. 3 Additionally,werequireincumbentsandgeographiclicenseestoaffordeachotherinterferenceprotection. ` (#` (#   0 ` WeadoptasubstantialserviceconstructionrequirementforVHFpubliccoaststationlicensesand  permitpartitioninganddisaggregationofthoselicenses. ` (#` (#  d   0 ` WeclarifythesafetywatchrequirementsofVHFpubliccoaststationlicensees.#` (#` (#   0 ` WeadoptcompetitivebiddingprocedurestoresolvemutuallyexclusiveinitialapplicationsforVHF  publiccoaststationlicenses,pursuanttoSection309(j)oftheCommunicationsAct. ` (#` (#   2  2  .3   ` OurdecisionsinthisThirdReportandOrderandMemorandumOpinionandOrderfurtherourgoalto $  improvemaritimecommunications.Indevelopingthesenewrulesweareguidedbyseveralbroadpolicyinitiatives.First,weseektoestablishaflexibleregulatoryframeworkthatwill(1)provideopportunitiesforcontinueddevelopmentofcompetitivenewservicesusingmaritimespectrum,(2)expeditemarketentrythroughstreamlinedlicensingprocedures,(3)promotetechnologicalinnovation,and(4)eliminateunnecessaryregulatoryburdens.Second,weseektoenhanceregulatorysymmetrybetweenmaritimeCMRSprovidersandotherCMRSproviderstoensurethatmarketforces,andnotregulatoryforces,shapethedevelopmentoftheCMRSmarketplace.Finally,wetakeintoaccounttheuniquenatureoftheMaritimeServices.Specifically,wenotethat(1)thefrequenciesareallocatedinternationallytofacilitateinteroperability;(2)useofmaritimespectrumissubjecttovariousstatutes,treaties,andagreements;and(3)theprimarypurposeoftheseservicesistoprovideforthesafetyoflifeandpropertyatsea.   II.BACKGROUND +       2  3  .3   `  K TheMaritimeServicesprovidefortheuniquedistress,operational,andpersonalcommunications b needsofvesselsatseaandoninlandwaterways.L E  5      ׀Maritimefrequenciesareallocatedinternationallybythe R/ InternationalTelecommunicationUnion(ITU)tofacilitateinteroperableradiocommunicationsamongvesselsofallnationsandstationsonlandworldwide.Publiccoaststations,whichareCMRSprovidersthatallowshipsatseatosendandreceivemessagesandtointerconnectwiththepublicswitchednetwork,useVHFbandfrequenciestoserveaportorcoastalarea.M E  6       c   2  4  .3   ` InNovember1992,theCommissionreleasedaNoticeofProposedRuleMakingandNoticeofInquiryin   thisproceedingtoexaminetheexpandingcommunicationsneedsofthemaritimecommunity.N E  7      ׀Basedonthecomments  received,itreleasedaFirstReportandOrderinMay1995,adoptingrulesthat,interalia,allowedtheuseofmaritime  VHF(156162MHz)bandpubliccorrespondencefrequenciesbyeligibleentitiesintheIndustrialandLandTransportation(I/LT)RadioServicesOE E  8      ׀awayfromnavigablewaterways.P  E  9      ׀Additionally,theCommissionreleasedaFurther T1  NoticeofProposedRuleMakinginresponsetocommenters'requestsformoreflexibleregulatorytreatmentofpublic ! coaststationsandenhancementsinmarinecommunicationsequipment.Q E  10       #    2  5  .3   ` OnJune26,1997,theCommissionreleasedaSecondReportandOrderandSecondFurtherNoticeof  ProposedRuleMaking,inwhichitadoptedrulesto,interalia,permittheautomatedoperationofpubliccoast  g stations,reducecongestionthroughintraservicefrequencysharingandinterservicefrequencysharingwithPLMRlicensees,andpermittheuseofinnovativetechnologies(suchasautomaticlinkestablishmentandtheexpandeduseofnarrowbanddirectprinting(NBDP)frequencies).R E  11      ׀TheCommissionalsoproposedrulesforgeographicarea   licensingofVHFpubliccoaststations,andsoughtcommentonvariousproposalsincludingpermittingpartitioningS E  12         anddisaggregationT E  13      ׀ofgeographiclicenses,andallowingincumbentVHFpubliccoaststationlicenseesandPLMR  h licenseessharingmarinespectrumininlandregionstooperateindefinitely.U/ E  14      ׀Inaddition,itproposedcompetitive  X5  biddingrulesforpubliccoaststations.V E  15      ׀SeventeencommentsandeightreplycommentstotheSecondFurtherNotice # werereceived.WX E  16          2  6  .3   ` OnAugust5,1997,shortlybeforethecommentperiodfortheSecondFurtherNoticeclosed,President  g ClintonsignedintolawtheBalancedBudgetActof1997(BalancedBudgetAct).XM E  17      ׀Section309(j)(2)ofthe W 4 CommunicationsActformerlystatedthatmutuallyexclusiveapplicationsforinitiallicensesorconstructionpermitswereauctionableiftheprincipaluseofthespectrumwasforsubscriberbasedservices,andcompetitivebiddingwouldpromotetheexpressedobjectivesoftheAct.Y E  18      ׀WeconcludedunderformerSection309(j)(2)that,becausepubliccoast   stationsareCMRSproviders,Zi  E  19      ׀mutuallyexclusiveinitialapplicationswereauctionable.[  E  20      ׀Thisconclusionis  h unchangedbytheBalancedBudgetAct,whichexpandedtheCommission'sauctionauthoritybyamendingSection309(j)toprovidethatallmutuallyexclusiveapplicationsforinitiallicensesorconstructionpermitsshallbeauctioned, %  withcertainlimitedexceptions.\  E  21           2  7  .3   ` Whileouractionsinthisproceedingaredesignedtoimprovemaritimetelecommunications,applicants i  shouldbeawarethatanFCCauctionrepresentsanopportunitytobecomeanFCClicenseeinthisservice,subjecttocertainconditionsandregulations.TheFCCdoesnotendorseanyparticularservices,technologies,orproducts,andgrantofanFCClicensedoesnotguaranteebusinesssuccess.Applicantsshouldperformtheirindividualduediligencebeforeproceedinginanauction,astheywouldwithanynewbusinessventure.   III.DISCUSSION D Z7      A. ` VHFPublicCoastStationSpectrum D    2  8  .3   ` Thereareonlyninechannelpairsinthe157.1875157.4500MHz(shiptransmit)and161.775162.0125 vS MHz(coasttransmit)bandsassignabletoVHFpubliccoaststationsforpubliccorrespondence.]K E  22      ׀AlongtheCanadian C  border,evenfewerchannelpairsareavailableforU.S.stations.^ E  23      ׀Currently,thesechannelpairsalsoareassignable  toI/LTusersinareasremovedfrompubliccoaststationsandnavigablewaterways._ E  24       #    1. ` Geographicarealicensing H    2  9  .3   `  a  b  `  `  a  b  `  c Ԁ ` Proposal.Underourcurrentrules,theserviceareaforVHFpubliccoaststationsisapplicant O , definedbasedonpredictedsignalstrengthoverthewaterwaytobeserved.dT E  25      ׀Thesizeofeachstation'sservicearea   alsodeterminesthemileageseparationbetweencochannelassignments.Usingaconservativeestimate,serviceareasforVHFbandpubliccoaststationsextend20to30milesfromthetransmitter.Inordertoestablishacomprehensiveandconsistentregulatoryapproachthatenhancesmaritimecommunications,intheSecondFurtherNoticetheCommission  ` proposedatransitionfromsitespecific"servicearea"basedlicensingtolicensingbasedonFCCdefinedgeographicareas.e E  26      ׀     2   10  .3   ` Decision.Weconcludethatthepublicinterestwillbestbeservedbyatransitiontogeographicarea   licensingforVHFpubliccoaststationspectrum.Thisapproachwillfacilitatethedevelopmentofwidearea,multichannelautomatedmaritimecommunicationssystems.ItalsowillpromoteregulatorysymmetrybetweenmaritimelicenseesandotherCMRSproviderswheregeographiclicensinghasbeenintroduced,consistentwiththecongressionaldirectivesetforthintheOmnibusBudgetReconciliationActof1993.ft E  27      ׀WedisagreewithMobileMarineRadio,Inc.   (MMR),anMF,HF,andVHFpubliccoaststationlicensee,thatourpursuitofthisobjectiveisfutileduetothelimitedamountofavailableVHFpubliccoaststationspectrum.g E  28      ׀WebelievethatCMRSlicenseesshouldbeaffordedregulatory b symmetrywhereverfeasible,regardlessoftheamountofspectrumdesignatedforspecificCMRSuses.h(  E  29      ׀Inaddition, R/ weagreewithMariTEL,aVHFpubliccoaststationlicensee,thatchangingourcurrentlicensingapproachinfavorofgeographiclicensingwillenablepubliccoaststationlicenseestobemorecompetitivewithotherCMRSprovidersandbetterservethepublic.i  E  30      ׀Further,wedisagreewiththecontentionsofMMRthatgeographicarealicensingwill  underminetheessentialpurposesoftheMaritimeServices,soshouldbeemployedonlyinthoseareaswherePLMRsharingispermitted.jv  E  31      ׀AsweindicatedintheSecondFurtherNotice,ourgoalinthisproceedingistoimprovemaritimeradio S0 inwaysthattakeintoaccounttheuniquenatureoftheMaritimeServices,includingitsprimarypurposeofprovidingforsafetyoflifeandpropertyatsea.k E  32      ׀Webelievethatthegeographiclicensingapproachwillenhancemaritime  communicationsbyexpeditingtheassignmentoftheremainingchannelpairsandfacilitatingdevelopmentofautomatedcoastalsystems. d Ї  2   11  .3   ` Moreover,wearenotpersuadedbytheconcernsofUTC,theTelecommunicationsAssociation(UTC), # whichrepresentsutilityandpipelinecompanies,andtheIndustrialTelecommunicationsAssociationandtheCouncilofIndependentCommunicationsSuppliers(ITA/CICS),whichrepresentPLMRusers,thatgeographiclicensingwilladverselyaffectPLMRincumbents'operationsandaccesstothisspectrum.l E  33      ׀Asdiscussedbelow,incumbents'operations  g willbeprotectedunderthenewlicensingapproach.Inaddition,partitioninganddisaggregationwillbepermitted,whichwillallowPLMRuserstoobtainspectrumthroughpartitioninganddisaggregationarrangementsinareasbeyondthoseinwhichSection90.283ofourRulescurrentlyallowsthemtobelicensed.mT E  34      ׀Thus,thisactionwillpotentially   increasetheiraccesstothisspectrum.   2. ` Serviceareas t\ X5    2   12  .3   ` Proposal.TheCommissionproposedintheSecondFurtherNoticetodividethenation-coastline   andinteriorintonineregions,basedonU.S.CoastGuardDistricts,n E  35      ׀aslistedbelow:   *qpq ddd Xdd Xdd X(#(#q, dd , dd +  0& a  Ex0 ProposedRegions(CoastGuardDistrict) B8  " x E  FxBNorthernAtlantic(1st)  D!  GulfofMexico(8th) 6,D!  x F Fx6MidAtlantic(5th)  q  NorthernPacific(13th) 6,q  x F Fx6SouthernAtlantic(7th)   SouthernPacific(11th) 6, x F Fx6GreatLakes(9th)  4 Alaska(17th) 6,4 x F Fx6Hawaii(14th)X[X&&lCconclusion  a &l&XX[Cconclusion$a x F  $TheCommissionsoughtcommentonwhetherU.S.CoastGuardDistrictsprovideanappropriatebasisfordefiningserviceareasfortheVHFpubliccoastservice,andaskedcommenterstodiscussalternativeserviceareadefinitions.rp E  36          2   13  .3   ` Decision.Afterreviewingtherecordinthisproceedingandourinitialproposals,webelievethat m thebestserviceareadefinitionforVHFpubliccoaststationspectrumdeviatesslightlyfromourinitialapproach.WeconcludethatregionsanalogoustoU.S.CoastGuardDistrictsshouldbethelicensingareasnearmajorwaterways,butnotelsewhere.WepartiallyagreewiththesuggestionthatweusesmallerunitsthanU.S.CoastGuardDistricts,suchasRandMcNally'sBasicTradingAreas(BTAs)ortheCommerceDepartment'sEconomicAreas(EAs),s E  37      ׀inorderto   permitsmallerentitiestoparticipateinauctionswithouthavingtobidforterritoryfarexceedingtheiroperatingneeds.t]  E  38      ׀Whenweconvertedfromsitebasedlicensingtogeographiclicensingof220222MHzbandfrequencies(the ^!;" frequencybanddesignatedforauctionthatmostcloselyapproximatespubliccoastVHFspectrum),weuseddifferentsizedlicensingareasinordertoaffordlicenseestheopportunitytoprovidedifferenttypesofserviceofferings.u E  39      ׀  ThesmallestlicensingareaweusedwastheEAbecausewebelievedthatitbestapproximatedthesmallestareadesiredbythetypicaluser.v E  40      ׀Similarly,wefindthatEAs,asdefinedinSection27.6ofourRules,wx E  41      ׀areappropriatelicensing  g areasfortheVHFpubliccoastspectrumininlandareas,becausetheyreflecturban,suburban,andruraltrafficpatterns,andthusapproximatethesmallestareadesiredbyatypicaluser.x  E  42      ׀ $    2   14  .3   ` Yetoneofourprincipalreasonsforconvertingtogeographiclicensingisthatourcurrentlicensing   approachhas"ma[d]eitextremelydifficultforasingleentitytoobtainenoughgeographicallyandspectrallycontiguousstationstodevelopanautomatedcoastalsystem."y,  E  43      ׀WebelievethatusinglicensingareassmallerthanU.S. X5  CoastGuardDistrictsinmaritimeareaswouldsimilarlyimpedethedevelopmentofsuchsystems.z  E  44      ׀Thus,weconclude %  thatusingareasanalogoustoU.S.CoastGuardDistrictsinthemaritimeareasisthemostappropriatealternative,because,asMariTELnotes,coaststationoperatorsarerequiredtocoordinatesafetycommunicationsserviceswiththeCoastGuard,andbecausetheU.S.CoastGuardDistrictsreflectvesselmovementpatterns.{x E  45      ׀Thus,geographiclicensees i  willbeabletoprovideappropriatewideareaservicestovessels,andtobettercompetewithotherCMRSproviders.  2  15  .3   ` Therefore,licensingareasidenticaltoEAsshallbeusedininlandregions,butlicensingareas   analogoustoU.S.CoastGuardDistrictsshallbeusedinmaritimeareas.WewilldistinguishbetweenEAsthatarenearoneormoremajorwaterways,| E  46      ׀referredtohereinasmaritimeEAs,andthoseEAsnopartofwhichiswithinonehundred j milesofamajorwaterway,referredtohereinasinlandEAs.} E  47      ׀EachinlandEAwillconstituteaseparatelicensingarea, Z7 orVHFPublicCoastarea(VPC),andVPCsconsistingofasingleinlandEAwillbeknownasinlandVPCs.~ E  48      ׀Thisapproach # willmorecloselymirrorthecurrentnatureofthisserviceawayfromwaterways,andwillhelpdifferentiatebetweenwaterandinlandareas.Partiesinterestedinbiddingfornewgeographicarealicenseswillbeabletochoosebetweengeographicareasnearwaterandthosethatareonland.EachinlandVPCshallbereferredtobythenameoftheEAitcomprises.  2  16  .3   ` MaritimeEAs,ontheotherhand,shallbegroupedintolargerVPCs,knownasmaritimeVPCs.The   maritimeVPCboundarieswillcorrespondroughlytoU.S.CoastGuardDistrictboundaries,thusproviding,alongmajorwaterways,thebenefitsofwidearealicensingbyU.S.CoastGuardDistrict.Inaddition,maritimeEAsstraddlingU.S.CoastGuardDistrictboundarieshavebeenassignedtothemostappropriatemaritimeVPC.  E  49      ׀Wenotethateach X5  maritimeVPCincludestheadjacentwatersunderthejurisdictionoftheUnitedStates,becausepubliccoastserviceismarinebased,withoutdistinctmarketsforlandandmarinecustomers.D E  50      ׀ThemaritimeVPCswillbereferredtoby   thetitlessetforthinthetableabove(seeparagraph12),exceptthatthemaritimeVPCanalogoustotheEighthCoast   GuardDistrictshallbereferredtoastheMississippiRiverVPC.   3. ` Treatmentofincumbentlicensees { &    2  17  .3         ` Proposal.TheCommissionproposedintheSecondFurtherNoticethateachincumbentmaritime   licensee,includingPLMRlicensees,bepermittedtocontinueoperatingpursuanttoitscurrentstationlicense. E  51      ׀It b proposedtorequirethenewgeographicarealicenseestoaffordinterferenceprotectioninaccordwithSection80.773ofourRules.d  E  52      ׀Section80.773specifiesa12dBratioofdesiredtoundesiredsignalstrengthwithintheincumbent's  serviceareaasthecriterionforVHFpubliccoaststationcochannelinterferenceprotection.  E  53      ׀Inturn,the  Commissionproposedtoalloweachincumbentlicenseetorenew,transfer,assign,ormodifyitslicenseonlytotheextentthatitdidnotextenditsserviceareaorspectrumallotment.  E  54      ׀Finally,itproposedthatmodificationsthat c wouldextendanincumbent'sserviceareaoruseadditionalfrequencieswouldbecontingentuponanagreementwitheachaffectedgeographicarealicensee. E  55      ׀TheCommissionsoughtcommentfromboththemaritimeandPLMRcommunities   concerningthegeneraltreatmentofincumbentlicensees,theappropriateinterferenceprotectioncriteria,andwhethermobiletomobilecommunicationsshouldbepermitted. E  56         d   2  18  .3   ` Decision.Weconcludethatallowingincumbentlicensees(includingI/LTusersandotherPLMR # licenseesoperatingonthisspectrumpursuanttowaivers)tocontinueoperatingunderthetermsoftheircurrentstationlicenseswillfurtherthepublicinterestbyavoidinginterruptionoftheservicestheyprovide. E  57      ׀Weagree,  however,withthecommentersthatopposeusingSection80.773foralltypesofincumbent.X E  58      ׀Therefore,wewillrequire  g geographicarealicenseestoaffordincumbentcoaststationlicenseescochannelinterferenceprotectioninaccordwithSection80.773ofourRules,butcochannelinterferenceprotectionforI/LTandotherPLMRincumbentsshallbebasedonthestandardforSMRservicesinthe220222MHzband. E  59      ׀ThisalternativeresemblestheproposalofITA/CICS   andUTCthattheCommissionaffordincumbentPLMRuserstheinterferenceprotectionprovidedforintherulesapplicabletothePLMRusers'variousservices.x E  60      ׀Thatpreciseproposalcannotbeadopted,however,becausePLMR  h licenseesusethesefrequenciesonlyonasharedbasis,sonoprotectionstandardcurrentlyexists. E  61      ׀Withrespectto X5  theparticularstandard,then,weconcludethatthesame12dBdesiredtoundesiredsignalstrengthstandardasSection80.773providesforVHFpubliccoaststationsshouldbeusedforincumbentpubliccoaststationoperations,whileincumbentPLMRoperationswillreceiveatleast10dBprotectiontotheir38dBucontours.  2  19  .3   ` Whilewewillnotrequirethatincumbentsprovideamapoftheircoverageareasinordertobe Y6  entitledtointerferenceprotection,asproposedbyMariTEL,wenonethelessnotethattheprotectionaffordedtoincumbentlicenseeswillbedependentuponthetechnicalinformationonfilewiththeCommission,fromwhichthegeographicarealicenseeswillbeabletodeterminetheappropriatelevelofcochannelinterferenceprotection. E  62      ׀   Weencourageincumbentstoverifytheinformationinourdatabaseconcerningtheiroperationsinadvanceoftheauctiontoensurethattheirexistingoperationsareinaccordancewiththeirstationauthorizations.  2  20  .3   ` Wealsoconcludethatincumbentsshouldbeprohibitedfromrenewing,transferring,assigning,or  modifyingtheirlicensesinanymannerthatextendstheirserviceareaorresultsintheiracquiringadditionalfrequencies,withouttheconsentofeachaffectedgeographicarealicensee.WerejectMMR'sproposaltoallowincumbentpubliccoaststationlicenseestoexpandtheirsystems,bothgeographicallyandbyadditionalfrequencies,beforethecommencementofgeographicarealicensing.  E  63      ׀Similarly,wedisagreewithMariTEL'ssuggestionthatwe ( permitsuchexpansionbyincumbentsontheconditionthatsuchoperationsceaseiftheincumbentdoesnotacquirethegeographicarealicenseincludingthesubjectservicearea,ormakesuitablearrangementswiththegeographicarealicensee.  E  64      ׀Webelievethatpermittingsuchincumbentexpansion,whetherpermanentlyorconditionally,would l undermineimplementationofandasmoothtransitiontothegeographiclicensingapproachweadopttoday.<  E  65      ׀In \9 addition,conditionalexpansionwouldnotbeinthepublicinterestbecauseuserswouldnothavecertaintyasto ) whetherservicewouldcontinue.Moreover,ourtreatmentofincumbentshereisconsistentwithourapproachinotherCMRScontextswherewehavetransitionedtogeographicarealicensing. E  66          2  21  .3   ` WealsodisagreewithMariTEL'sassertionthatexistinglicenseesprovidingcontiguouscoverageon  g agivenchannelpairshouldbepermittedtoobtainacombinedauthorizationforthatcoveragearea,whichwouldenableanincumbenttorelocateitsfacilitieswithinitscombinedcoverageareaforthatchannelpairwithoutmakingarrangementswiththegeographicarealicensee. E  67      ׀Theproposal,whichisbasedonasimilarprovisionfor800MHz   SpecializedMobileRadio(SMR)incumbents,isunsuitedtothepubliccoastservice. E  68      ׀Unlike800MHzSMR,publiccoast   stationlicenseeswithcontiguousstationsdonotusethesamechannelpairsateachsite,sotheproposalwouldrequiretheissuanceofadifferentcombinedlicenseforeachchannelpair. E  69      ׀Also,unlikeSMRsystems,whichserve X5  landareas,publiccoaststationsystemsareunlikelytohave"deadspots"completelysurroundedbyfacilitieslicensedtothesameoperatoronthesamefrequency,soaprimaryreasonforgrantingsuchlicensestoSMRoperatorsisnotpresentinthepubliccoastservice.  E  70      ׀Finally,wealreadyhavegrantedMariTELthesitingflexibilityitseeks:   incumbentswillhavetherighttorenew,transfer,assign,ormodifyalicenseinamannerthatdoesnotextendthelicensee'sserviceareaoracquireadditionalfrequencies.Thus,evenwithouttheprocedurerequestedbyMariTEL,incumbentsmayadd,modify,relocate,oreliminatefacilitieswithintheircombinedcontourforagivenchannelpair,providedtheydonotexpandtheircurrentserviceareasorobtainadditionalfrequencies.  2  22  .3   ` Weneverthelessrecognizethatmaintainingrecordsforalargenumberofseparatecallsignsforone j regionalsystemcanbeburdensome.Forexample,multiplecallsignscanrequiremultiplemodificationrequestsandstaggeredrenewalapplications.Wehavegrantedwaiverstoconsolidatemultiplefacilitieswithinasinglesystemunderasinglelicensewithasinglecallsigninthepast,andwewill,afterthecloseoftheauctionforgeographicarealicenses,entertainmodificationrequeststothiseffectfromincumbents.Toavoidmanipulationandevasionofconstructionandrenewalrequirements,suchconsolidatedlicensesordinarilywillexpireontheexpirationdateoftheearliesttoexpiresitelicense.  2  23  .3   ` Finally,wearenotpersuadedthatMariTEL'sproposaltopermitmobiletomobilecommunicationsin  coastalareas"  E  71      ׀isappropriateatthistime,becausetherecordcontainsinsufficientinformationregardingchannel  capacityandcochannelinterferenceprotection.WealsoareconcernedthatpermittingmobiletomobilecommunicationmayimpairtheMaritimeServices'safetyfunctions.  E  72       \9 Ї   4. ` Licensing  #   2  24  .3           ` Proposal.TheCommissionproposedintheSecondFurtherNoticetoauthorizeasinglelicenseeto  operateonallunassignedVHFpubliccorrespondencefrequencieswithinageographicareaforatenyearlicenseterm. E  73      ׀  _ Italsoproposedtopermiteachgeographicarealicenseetoplacestationsanywherewithinitsgeographicareatoservevesselsorunitsonland,solongasmarineoriginatingtrafficisgivenpriorityandincumbentoperationsareprotected.X E  74      ׀TheCommissionproposedthat,withcertainexceptions,basestationsandlandunitsbeblanketlicensed   underthegeographicarealicense. E  75      ׀Italsoproposedthatthespectrumauthorizedtoanincumbentthatfailsto   construct,discontinuesoperations,orotherwisehasitslicenseterminatedbytheCommissionwouldautomaticallyreverttothegeographiclicensee,andthattheCommissionwouldpresumeanegotiatedassignmentortransferofanincumbentstationtoageographicarealicenseetobeinthepublicinterest.t E  76      ׀Finally,theCommissionproposedto   usethecurrentrulesregardingVHFpubliccoastoperationstodefinealicensee'spermissiblefieldstrengthatitsserviceareaboundaries;andtoauthorizetheuseofVHFpubliccoastspectruminwaterwaysnearCanadapursuanttocoordinationwithIndustryCanada, E  77      ׀asoutlinedintheCanada/U.S.A.channelagreements. E  78      ׀TheCommissionalsosought a  commentonwhethertotakeanystepstofacilitateuseofthisspectrumbypublicsafetyentities.  E  79       Q.    2  25  .3   ` Decision.Weconcludethatauthorizingasinglegeographicarealicenseetooperateonall   unassignedVHFpubliccorrespondencefrequencieswithinthedefinedserviceareasforatenyearlicensetermwillfurtherthepublicinterestandthegoalsunderlyingthisproceeding.ContrarytoMurrayCohen'scontention,  E  80      ׀we b believethatmultiplepubliccoaststationlicenseesinthesameareaarenotnecessarytofostercompetition,because,asMariTELnotes,vesseloperatorsoperatingalongthecoastalreadyhaveavarietyofCMRSprovidersfromwhichtoselect.<  E  81      ׀Thus,weconcludethatthelevelofcompetitionwillnotbeadverselyaffectedbyauthorizingasingle  geographiclicensee.Infact,webelievethatcompetitioninthemaritimemarketwillbefosteredbecausesuchlicenseewillbebetterabletoexpanditsserviceofferingsandestablishanautomatedsystem.Eachgeographiclicenseewillbepermittedtoplacestationsanywherewithinitsregion,onlandorwater,andtoservevesselsorunitsonlandprovidedthatmarineoriginatingtrafficisgivenpriorityandincumbentoperationsareprotected.Thisincreasedflexibilitywillenablelicenseestoserveadditionalmarketsandwillpromotethedeliveryofinnovativetelecommunicationsservices,whilepreservingservicethatprotectsthesafetyoflifeandpropertyatsea.  2  26  .3   ` Wealsoconcludethatthegeographiclicensewillconstituteablanketauthorizationforbothbase T1 stationsandlandunits.However,geographicarealicenseeswillberequiredtoindividuallylicenseanybasestationthatrequiresanEnvironmentalAssessmentpursuanttoSection1.1307oftheCommission'sRulesorinternational  coordination,orwouldaffecttheradiofrequencyquietzonesdescribedinSection80.21oftheCommission'sRules.Thissimplifiedapproachtowardinitiallicensingandsubsequentsystemmodificationisconsistentwiththeapproachwehavetakenforgeographicarealicensinginotherwirelessservices. E  82      ׀Inaddition,webelievethatsuchanapproach  willincreaseoperationalflexibility(resultinginfaster,moreresponsiveservicetothepublic)whilereducingadministrativeburdensonbothlicenseesandtheCommission.Ifanincumbentfailstoconstruct,discontinuesoperations,orotherwisehasitslicenseterminatedbytheCommission,thespectrumcoveredbytheincumbent'sauthorizationwillautomaticallyreverttothegeographicarealicensee(eveninageographicareapartitionedbythelicensee,unlessthepartitioningagreementprovidesotherwise),exceptforspectrumsetasideforpublicsafetyuse.X E  83      ׀   Ifalicenseenegotiatestoacquireanincumbentstationbyassignmentortransfer,theassignmentortransferwillbepresumedtobeinthepublicinterest. E  84      ׀Thiswillassistgeographiclicenseesinconsolidatingspectrum,andgive X5  themgreaterflexibilityinmanagingthespectrumandestablishingcoastalandwideareasystems.  2  27  .3   ` MariTEL,initspetitionforreconsiderationoftheSecondReportandOrder,proposesthatVHFpublic   coaststationandAutomatedMaritimeTelecommunicationsSystem(AMTS)coaststationlicenseesandapplicantsintendingtoserveunitsonlandberequiredtosubmitplansdemonstratinghowtheywillaffordprioritytomaritimecommunications.x E  85      ׀WeagreewithFredDanield/b/aOrionTelecom(Orion),anAMTSstationlicensee,thatsucha &  requirementisnotneeded. E  86      ׀WebelievethatlicenseeswillcomplywiththerequirementsofSection80.123(b)ofour   Rules,whichrequirespubliccoaststationsservingstationsonlandtoaffordprioritytomarineoriginatingcommunicationsthroughanyappropriateelectricalormechanicalmeans. E  87      ׀If,however,ourexperienceshowsus j otherwise,wereservetherighttorevisitthisissue.  2  28  .3   ` Geographiclicenseesandincumbentswillbeprohibitedfromexceedingafieldstrengthof+5dBu  (decibelsreferencedtoonemicrovoltpermeter)attheirserviceareaboundaries(unlesstheborderinglicenseeagreestoahigherfieldstrength).RatherthanextendingpreciseVPCboundariesintotheoceans,weexpectadjacentVPClicensees(ortheirpartitionees)tocoordinatewaterbasedsiteselectiontoavoidharmfulinterference.Thisapproachprovideslicenseestheabilitytooperatetheirsystemsuptothebordersoftheirserviceareas,whilealsoprovidingprotectiontoadjacentlicensees.TheuseofVHFpubliccoastspectruminareasalongtheGreatLakes,St.LawrenceSeaway,andthecoastalwatersofWashingtonwillbeauthorizedpursuanttocoordinationwithIndustryCanada,asoutlinedintheCanada/U.S.A.channelagreementssetforthinSection80.57oftheCommission'sRules.  E  88      ׀ l   2  29  .3   ` Regardingwhetherweshouldtakestepstofacilitateuseofthisspectrumbypublicsafetyentities,  theAssociationofPublicSafetyCommunicationsOfficialsInternational,Inc.(APCO),thefrequencycoordinatorforthePart90Police,LocalGovernment,and800MHzPublicSafetyPoolchannel,andtheForestryConservationCommunicationsAssociation(FCCA),thefrequencycoordinatorfortheForestryConservationRadioService,propose ]":" thatpublicsafetyusersbeaffordedareasonableopportunitytoseekanycurrentlyunusedfrequenciesbeforeanygeographicarealicensesareauctioned;andthatextrachannelpairsbeexcludedfromauctionsandbemadeavailableonlytopublicsafetyentitiesforatleastfiveyearsthereafter. E  89      ׀TheystatethatpubliccoastVHFspectrumisideal  formanypublicsafetyandforestryconservationoperationsbecauseitpermitswideareacoveragewithfewersitesthanhigherfrequencybands.X E  90      ׀Inaddition,thisspectrumwouldbefullyinteroperablewithexistingpublicsafety W 4 andforestryconservationVHFchannels. E  91      ׀Wenotethatpublicsafetyandforestryconservationagenciesneed $  additionalspectrum,butinmanyareasnoVHFpublicsafetyorforestryconservationspectrumisavailable.p E  92      ׀APCO   statesthatgivingpublicsafetyentitiesaprioritytoobtainvacantpubliccoastVHFchannelswouldaccordwithlongstandingCommissionpolicyandwiththeBalancedBudgetAct,whichrequirestheCommission,undercertainconditions,towaiveanyrequirementoftheCommunicationsActortheregulationsthereunder(exceptregulationsregardingharmfulinterference)topermitapublicsafetyentitytouseunassignedfrequencies. E  93      ׀ %    2  30  .3   ` OthercommentersopposeAPCO'sproposal,onthegroundsthatthesefrequenciesarenotwellsuited   forusebypublicsafetyentities,becausemostoftheavailablechannelsareinruralareaswhilethegreatestpublicsafetyneedsareinurbanareas. E  94      ׀Inthisconnection,theynote  E  95      ׀that24MHzinthe746806MHzbandhavebeen Y6  reallocatedforpublicsafetyentities.  E  96      ׀Theyalsocontendthatsettingmaritimespectrumasideforpublicsafety &  isnotnecessaryorwarrantedbecausepubliccoaststationlicenseesalreadyprovideemergencycommunicationservices.  E  97      ׀     2  31  .3   ` Weconcludethatdesignatingtwocontiguouschannelpairsforpublicsafetyusers[ E  98      ׀ineachinland Z7 VPC,butnotinthemaritimeVPCs,willbestfurtherthepublicinterest. E  99      ׀Webelievethatsuchasetasideisnot ' likelytoadverselyaffectthedevelopmentofnewsystemsintheseregions.Wealsofindthatallottingfewerchannelpairswouldbeoflittleutilitytopublicsafety,whileallottingmorecouldleavethelicenseewithtoolittlespectrumtobeuseful.Designatingthechannelsinadvance,andnotholdinganyotherchannelsaside,alsoavoidsunnecessarydelayoftheauctionforpubliccoastspectrumandallowsprospectivebidderstohaveaclearer understandingofwhatspectrumisvacantandavailable.Theultimateuseforthesereservedfrequencies,andthe ( proceduresforlicensingthisspectrum,shallbedecidedaspartofourpendingpublicsafetyproceeding. E  100      ׀Wedecline #  tosetasidechannelpairsinanyofthelargerVPCsbecause,duetothescarcityofspectrum,suchanaction,asnotedbyMariTEL,wouldmakethedevelopmentofwideareacoastalsystemsverydifficult. E  101      ׀Moreover,webelievethatthe  publiccoastspectrumthatwearesettingasideforpublicsafetyusewillsufficientlyaccommodatepublicsafetyneedsinthisbandwithoutunderminingthegoalsunderlyingthisproceedingandthenewlicensingapproachweadopttoday.   5. ` Coveragerequirements $     2  32  .3           ` Proposal.IntheSecondFurtherNotice,theCommissionsolicitedcommentonanappropriate  ` constructionrequirementforVHFpubliccoastgeographicarealicensees. E  102      ׀Oneoptionsuggestedwastorequire P-  provisionof"substantialservice"totheirserviceareaswithintenyears. E  103      ׀Alternatively,theCommissionrequested   commentonsubjectinggeographicarealicenseestothecurrenteightmonthconstructionrequirementforpubliccoaststationsorestablishingadifferentconstructionrequirement,suchasrequiringcoverageofatleasttwentypercentofthepopulationorfiftypercentofnavigablewaterwaysintheserviceareawithinfiveyears. E  104       a    2   33  .3   ` Decision.Weconcludethatrequiringprovisionofsubstantialservicetothegeographicarea   licensees'serviceareaswithintenyears,asproposedintheSecondFurtherNotice,wouldnotachieveourgoalsof   promotingefficientuseofthespectrum;encouragingtheprovisionofservicetorural,remote,andinsularareas;andpreventingthewarehousingofspectrum.Weremainconvinced,however,thatthecurrenteightmonthconstructionrequirement,unmodified,wouldimposeanunreasonableburdenongeographicarealicensees.Wethereforebelieveitnecessarytoestablishaconstructionrequirementthatwillencourageconstructionandpreventspectrumwarehousingwhileprovidinggeographiclicenseeswithsufficientflexibilitytomeetmarketdemandsforservice.WeagreewithMMRandMariTELthat,becauseoftheimportanceofpubliccoaststationstomaritimesafety,theconstructionrequirementshouldnotbetooloose,particularlyalongcoastlinesandother"navigablewaterways."e  E  105      ׀Inlightofthe c maturityoftheMaritimeServicesalongthebusiestwaterways,however,wedonotbelievethatrequirementsasstrictastheysuggestarenecessary.$  E  106      ׀Weshallinsteadrequiresubstantialservicewithinfiveandtenyears,asdescribed   below.Inaddition,geographicarealicenseesshallbeaffordedarenewalexpectancywhentheirlicensetermsexpire, providedthattheydemonstratethatthey(1)haveprovidedsubstantialserviceduringtheirlicenseterm;and(2)have  compliedwithapplicableCommissionrulesandpolicies,andtheCommunicationsAct. E  107       #    2!  34  .3   ` WewillrequiremaritimeVPClicenseestoprovidesubstantialservicewithinfiveyearsofinitial  authorization,whichcanbesatisfiedbyademonstrationofcoveragetoonethirdofthemaritimeVPC'smajorwaterway(s)X E  108      ;andagainwithintenyears,whichcanbesatisfiedbyademonstrationofcontinuouscoveragetotwo W 4 thirdsofthemajorwaterway(s).TosatisfytherequirementalongariverortheGulfIntracoastalWaterway,serviceshouldbeprovidedacrosstheentirewidth.Tosatisfytherequirementonotherwaterways,coverageshouldextendout20nauticalmiles E  109      ׀(unlesslimitedtoasmallerareabyaninternationalorVPCborder)fromthecoastlineor,where   applicable,fromthelineestablishedbytheCoastGuardtodivideinlandwatersfromterritorialseas.x E  110      ׀Inmaritime  h VPCswithmorethanonemajorwaterway,thecoveragereferstothetotallengthofallmajorwaterways;coverageneednotnecessarilybeprovidedtoeverymajorwaterway,ortoanyminimumpercentageofeachmajorwaterway.These"safeharbor"examplesareintendedtoprovidelicenseesadegreeofcertaintyregardinghowtocomplywiththesubstantialservicerequirement.Therequirementcanbemetinotherways,whichwillvarydependingonthemarketserved,andwewillreviewlicensees'showingsonacasebycasebasis.  2"  35  .3   ` MMRproposestorequireconstructionofsufficienttransmitterstoprovideserviceonallauthorized &  frequenciessimultaneouslyratherthanusingafrequencyagiletransmitter(whichMMRcontendsismerelyachannelwarehousingdevice). E  111      ׀However,weagreewithBRCommunications(BRC),adeveloperofHFradiosystems,whichsays   thatsucharequirement"wouldpreventlicenseesfromusingmodernbroadbandantennasandradioamplifiers,lockingtheminsteadintooutdated,1960'seraarchitecture.Moreover,itwouldincreasedramaticallythecostsofplacinganewcoaststationintoserviceand,asaresult,wouldunderminethedevelopmentofcompetitioninthemaritimeservice." E  112      ׀Weendeavortoadopttechnologyneutralpolicies,solicenseescanchoosetheequipmentbestsuitedto  theirneeds.  E  113      ׀WealsonotethatnosuchrequirementisimposedonotherCMRSproviders.  E  114      ׀    2#  36  .3   ` WealsowillrequireinlandVPClicenseestoprovidesubstantialservicewithinfiveandtenyears. [8 ForinlandVPClicensees,substantialservicecanbesatisfiedbyademonstrationofcoveragetoatleastonethirdofthepopulationoftheVPCwithinfiveyearsofinitialauthorizationandatleasttwothirdsofthepopulationwithintenyears.Thisissimilartotheapproachweadoptedforgeographicarealicenseesinthe220MHzService. E  115      ׀  AsisthecasewiththemaritimeVPCsafeharborexamples,thesesafeharborexamplesareintendedtoprovidelicenseesadegreeofcertaintyregardinghowtocomplywiththesubstantialservicerequirement.Therequirementcanbemetinotherways,andwewillreviewlicensees'showingscasebycaseiftheyrelyonadifferentbasis.ServiceneednotbeprovidedtowaterwaysintheinlandVPC,butifwaterwaysareserved,publiccoaststations'maritimeobligations(e.g.,safetywatchandprioritytomarineoriginatingtraffic)shallapply.Wedeclinetoadopttheproposalof W 4 ITA/CICSthattheCommissionpreventwarehousingofinlandspectrumby"permit[ting]thecontinuedlicensingofI/LTradiosystemsintheareasawayfromthenavigablewatersevenifonlyonasecondarybasis." E  116      ׀Wealsodeclineto   adopttheirproposalthatafteraperiodoftimeequaltotheoriginalconstructionperiod,PLMRuserslicensedonasecondarybasisbeconvertedtoprimarystatus.Webelievethattheconstructionrequirementissufficienttopreventspectrumwarehousingand,thus,suchmeasuresarenotnecessary. E  117       X5     6. ` Partitioninganddisaggregation <Ԁ      2$  37  .3         ` Proposal.TheCommissionproposedintheSecondFurtherNoticetopermitpartitioningand a  disaggregationbygeographicarealicensees,andthatsuchtransactionswouldbegovernedbytheCommission'scurrentpartialassignmentprocedures. E  118      ׀TheCommissionproposedtoallowgeographicarealicenseestopartitionand/or   disaggregategeographicareaandanyamountofspectrumatanytimetoanyentityeligibleintheMaritimeServices. E  119      ׀   Italsoproposedtopermitcombinedpartitioninganddisaggregation. E  120      ׀Inaddition,theCommissionproposedthat   partitioneesanddisaggregateesholdtheirlicensesfortheremainderoftheoriginallicensee'stermandbeentitledtoestablisharenewalexpectancy./  E  121      ׀Finally,itproposedtoapplyunjustenrichmentpayments,includingaccelerated R/ paymentofanybiddingcreditweadoptforsmallbusinesses,asaconditionforapprovingpartitioninganddisaggregationarrangementsinvolvingacompleteorpartialtransferofalicenseownedbyaqualifiedsmallbusinesstoanentitythatdoesnotqualifyasasmallbusiness.  E  122      ׀theCommissionsoughtcommentonthesetentativeconclusions,  andontherespectiveobligationsofthepartiestoapartitioningordisaggregationarrangement.O  E  123      ׀ c   2%  38  .3   ` Decision.Weconcludethatpubliccoastgeographicarealicenseesshouldbepermittedtopartition   anyportionoftheirgeographicservicearea,andtodisaggregateanyamountofspectrum,atanytimetoanyentityeligibleforapubliccoaststationlicense. Thisapproachwillaffordpartiesflexibilitytopursueavarietyof competitiveserviceofferings,facilitatenewmarketentrants,andpromotedeliveryofqualityservicetothepublic. d Moreover,contrarytoMurrayCohen'sassertion, E  124      ׀suchapproachisconsistentwithouractioninotherCMRScontexts.T E  125      ׀ #  Inaddition,partitioneesanddisaggregateesshallholdtheirlicensesfortheremainderoftheoriginallicensee'slicenseterm,andbeabletoqualifyforarenewalexpectancy,providedthattheyprovidesubstantialserviceandcomplywiththeCommission'srulesandpoliciesandtheCommunicationsAct.Webelievethattheserequirementsarenecessaryinordertopreventlicenseesfromusingpartitioninganddisaggregationtocircumventourrulesgoverninglicensetermandconstructionrequirements,andtoensurethattherewillbemaximumincentiveforpartiestopursueavailablespectrumasquicklyaspracticable.  2&  39  .3   ` Publiccoaststationlicenseeswillbepermittedtoacquirepartitionedand/ordisaggregated  h licensesineitheroftwoways:(1)theymayformbiddingconsortiatoparticipateinauctions,andthenpartitionordisaggregatethelicenseswonamongconsortiaparticipantsaftergrant;or(2)theymayacquirepartitionedordisaggregatedlicensesfromotherlicenseesthroughprivatenegotiationandagreementeitherbeforeoraftertheauction.Alicenseeplanningtopartitionordisaggregateitslicensemustfileanassignmentapplication.Weconsiderpartitioninganddisaggregationtobeassignmentsoflicense,whichwill,therefore,requirepriorapprovalbytheCommission.Inauthorizingpartitioninganddisaggregationarrangements,wewillfollowexistingassignmentprocedures. E  126      ׀Underourcurrentrules, E  127      ׀thelicenseemustfileFCCForm1046,AssignmentofAuthorization,signed &  byboththelicenseeandthequalifyingentity,  E  128      ׀andthequalifyingentityalsomustfileFCCForm503,Application   forLandRadioStationLicenseintheMaritimeServices.(  E  129      ׀Wewillrequirethatalicenseedisaggregatebyfrequency   pairs.Thisrequirementisnecessaryforadministrativepurposes:updatestothedatabasenecessarytotrackauthorizationscouldotherwisebecomedelayedorpronetoerror.O E  130       Z7   2'  40  .3   ` MariTELarguesthatgeographicarealicenseesthatpartitionand/ordisaggregateshouldremain  ultimatelyresponsibleforsatisfyingtheircoveragerequirements. E  131      ׀Wehavedeterminedthatthepublicinterestwill  beservedbyfollowingtheapproachwehavetakeninothergeographiclicensingcontexts;i.e.permittinglicensees k tonegotiatewhichpartywillberesponsibleformeetingtheapplicableconstructionrequirements.k E  132      ׀Ourgoalisto [8 ensurethatlicenseeshavetheflexibilitytostructuretheirbusinessplans,whileensuringthatpartitioningand ( disaggregationnotbeusedasavehicleforcircumventingtheapplicableconstructionrequirements.  2  2(  41  .3   ` Wewillallowpartiestopartitioningagreementstochoosebetweentwooptionsforsatisfyingthe  constructionrequirements:(a)thepartiesmayeitheragreetomeettheconstructionrequirementsfortheirrespectiveportionsoftheservicearea;or(b)theoriginallicenseemaycertifythatithasmetorwillmeettheconstructionrequirementsfortheentiremarket.Underthefirstoption,thepartitionorandpartitioneewouldeachcertifythattheywillindependentlysatisfythesubstantialservicerequirementfortheirrespectivepartitionedareas.Ifeitherlicenseefailedtomeetitssubstantialserviceshowingrequirement,onlythenonperforminglicensee'srenewalapplicationwouldbesubjecttoforfeitureatrenewal.Underthesecondoption,thepartitionorcertifiesthatithasmetorwillmeetthesubstantialservicerequirementfortheentiremarket.Ifthepartitionorfailstomeetthesubstantialservicestandard,however,onlyitsrenewalapplicationwouldbesubjecttoforfeitureatrenewal.Thepartitionee'slicensewouldnotbeaffectedbythatfailure.  2  2)  42  .3   ` Wewillestablishtwooptionsfordisaggregatinglicensees.Webelievethatitisappropriatefor i  thedisaggregatororthedisaggregateetoassumefullresponsibilityforconstructionwithinthesharedservicearea,becauseservicewouldbeofferedovertherelevantpopulation,evenifnotontheentirespectrum.Underthefirstoption,thedisaggregatoranddisaggregateewouldcertifythattheyeachwillshareresponsibilityformeetingthesubstantialservicerequirementforthegeographicservicearea.Ifpartieschoosethisoptionandeitherpartyfailstodoso,bothlicenseswouldbesubjecttoforfeitureatrenewal.Thesecondoptionwouldallowthepartiestoagreethateitherthedisaggregatororthedisaggregateewouldberesponsibleformeetingthesubstantialservicerequirementforthegeographicservicearea.Ifpartieschoosethisoption,andthepartyresponsibleformeetingtheconstructionrequirementfailstodoso,onlythelicenseofthenonperformingpartywouldbesubjecttoforfeitureatrenewal.  2*  43  .3   ` Wenolongerneedtoestablishaseparateunjustenrichmentrequirementforapprovingpartitioning [8 anddisaggregationinthepubliccoastservice,becausewehaveinanotherproceedingadoptedauniformrequirementinPart1ofourRulesforallservices. E  133      ׀TheunjustenrichmentprovisionsadoptedthereinwillalsoapplytoVHF  publiccoastgeographiclicenseesthatareaffordedabiddingcreditandlaterelecttopartitionordisaggregatetheirlicenses.   7. ` Technicalflexibility P" )   2+  44  .3           ` Proposal.AstheCommissionnotedintheSecondFurtherNotice,thebasicchannelizationforVHF    publiccoastspectrumissetforthintheITURadioRegulationsas25kHz. E  134      ׀However,AMTScoaststations(216220MHz) !e! arepermittedtheflexibilitytousenarrowbandtechnologiesinadditiontothe25kHzchannelplansetforthinourrules. E  135      ׀TheCommissionproposedintheSecondFurtherNoticethateachgeographicarealicensee,aswellasincumbent "## licensees,beauthorizedtousenarrowbandtechnologiesinthesamemannerasAMTScoaststations. E  136       #$   2,  45  .3   ` Decision.Weconcludethatpubliccoastlicenseesshouldbepermittedtousefrequenciesoffset12.5 %f& kHzfromthemarineVHFband(156162MHz)publiccorrespondencechannelswheretheyareauthorizedonbothadjacent V&3' frequencies,and,assuggestedbyMurrayCohen, E  137      ׀wherethelicenseeontheothersideoftheoffsetfrequencyconsents # tosuchuse.Afterthecloseofthecommentperiodinthisproceeding,the1997WorldRadiocommunicationConference(WRC97)authorizedtheuseof12.5kHznarrowbandchannelstoreducelocalcongestion,T E  138      ׀soweadoptthatnarrowband  channelizationplan,inlieuofourproposaltonotspecifyaplan.{ E  139      ׀TheWRC97actionalsoresolvestheobjections  g oftheCoastGuardandRossEngineering(Ross),amanufacturerofmarineradioequipmentandproviderofVHFradioservices,againstauthorizingnarrowbandtechnologywithoutaninternationalconsensus.Thosecommentersalsoopposetheuseofoffsetchannelsbecause,amongotherreasons,theyseenoneedfortheadditionalchannels,andnoPart8012.5kHzequipmenthasbeentypeaccepted.  E  140      ׀WeagreewithMariTELandMMRthatadditionalchannelsareneededbecause   withoutnarrowbandchannelpairs,publiccoastlicenseeswillbehamperedintheireffortstocompeteeffectivelywithotherCMRSproviders.Wealsoarenotpersuadedthatthelackoftypeacceptedequipmentisasufficientreasonnottoadoptourproposal.Infact,theCommissionhaspreviouslyadoptedregulationspermittingtheuseofequipmentforwhichthereisnotyettypeacceptance. E  141           2-  46  .3   ` InadditiontocommentingonourproposalintheSecondFurtherNotice,theCoastGuardfileda i  petitionforrulemaking,whichweelectedtotreatasacommentinthisproceeding.#  E  142      ׀TheCoastGuardrequeststhat Y6  weamendPart80ofourRulestosetasideduplexchannelpairsoffset12.5kHzfromthemarineVHFbandpubliccorrespondencechannels,andmarineVHFChannel228B(162.0125MHz).  E  143      ׀InthoseareaswhereChannel88isavailable   tomaritimeusers,C E  144      ׀Channel228BisaVHFpubliccorrespondencenarrowbandfrequency;inotherareas,Channel228B   isafederalgovernmentfrequency. E  145      ׀TheCoastGuardproposesthatthesechannelsbeusedforAutomaticIdentification j Systems(AIS)andrelatedsafetysystems,insupportofitsPortsandWaterwaysSafetySystem(PAWSS)project,whichwillprovideVesselTrafficServices(VTS)tofacilitatethesafeandefficienttransitofvesseltraffictoprevent collisions,groundings,andenvironmentaldamageassociatedwithmaritimeaccidents.c E  146      ׀Specifically,theCoast  Guard,supportedbyRossandothers, E  147      ׀proposesthatthechannelsbeusedonashared,needdeterminedbasiswithVHF #  publiccoaststations,andthatatleasttwooftheeightoffsetchannelsavailablenationwide,plusChannel228B,bereservedinanygivengeographicareaforsuchuse. E  148      ׀MariTELproposesawardingtheoffsetfrequenciestoVHFpublic  coastspectrumlicenseesinitially,butontheconditionthattheCommissioncanlaterdesignatesuchchannelsforAISuse.x E  149      ׀ W 4   2.  47  .3   ` WebelievethatthreesubsequentdevelopmentsmustbeconsideredinconnectionwiththeCoastGuard's   proposal.First,theDepartmentofTransportationappropriationforfiscalyear1998containsfundingforthePAWSSproject,withbothhousesofCongressexpressingstrongsupportfortheCoastGuard'sefforts. E  150      ׀AstheHousereport  h stated,8  [AIS]technologyshouldbethefoundationo[f]anyfutureVTSsystem.TheAIStechnologyemploysonboardtransponders,electroniccharts,andDifferentialGlobalPositioningSystemtechnologytoprovidedirect,vesseltovessel,voicelesselectronicdatacommunications.TheCommitteestronglybelievesthatthistechnologywillsignificantlyimprovenavigationalsafety,notjustinselectVTStargetports,butthroughoutthenavigablewatersoftheUnitedStates.TheCommitteeencouragestheCoastGuardtocontinueworkingwithitsPAWSSstakeholders,duringthedevelopmentandimplementationofthisnationalsystem,toensurethatitprovidesthegreatestamountofnavigationalandenvironmentalsafetyforthebroadestgeographicalareaatthelowestcosttotheAmericantaxpayers.+ E  151      Z7   Second,theInterdepartmentRadioAdvisoryCommittee(IRAC)  E  152      ׀approvedtheCoastGuard'srequesttouseChannel228B  inthoseareaswhereitisallocatedtothefederalgovernment.Finally,WRC97setasideChannels87B(161.975MHz)and88B(162.025MHz)forAIS,butprovidedthat,wherethosefrequenciesareunavailable,otherfrequenciesmaybeused.s  E  153      ׀Channel87(includingChannel87B)iscurrentlyallocatedtoVHFpubliccorrespondence, E  154      ׀andChannel88Bis [8 allocatedtoGovernmentnonmilitaryagencies. E  155      ׀ (   2/  48  .3   ` WeconcludethattheCoastGuardrequestshouldbegranted,andtwochannelpairs(plusChannel228B,  whereitisamaritimefrequency)shouldbesetasideineachmaritimeVPCforAIS.Webelievethatsettingasidethese l frequenciesforthispurposewillenhancethesafetyoflifeandpropertyonvesselsinUnitedStateswatersbyreducingcollisions,groundings,andenvironmentalharm, E  156      ׀furthereffectuatingourregulatorygoaloffosteringthe  protectionoflifeandpropertyatseathroughtheuseofmaritimeradiospectrum.WhileweconsideredsettingasideChannel87BasoneoftheAISchannels,weconcludethatthepublicinterestbenefitsflowingfromsuchanapproachareminimalascomparedtothepotentialadverseimpactonourlicensingofpubliccoaststations.First,settingasideChannel87BasanAISchannelwouldrequirerelocationofthethirtyfourpubliccoaststationscurrentlyauthorizedtouseChannel87.Second,webelievethatsettingasideonebroadbandchannelandonenarrowbandchannelforAISmightcomplicateAISimplementationorraisethecostofthenecessaryequipment.Third,thisapproachwouldencumberonebroadbandchannelandthreenarrowbandchannels,insteadofencumberingtwonarrowbandchannelsasproposedbythe  h CoastGuard,becausesettingasideChannel87Bwouldleavethesurroundingnarrowbandchannelsunavailable.Finally,settingasideChannel87BwouldharmmaritimeVPClicensees'abilitytoconstructwideareasystemsbyleavingmostwithnomorethaneightbroadbandchannels.Thus,wewillnotdesignateChannel87BasanAISchannel.  20  49  .3   ` InsteadofselectingthechannelpairsforanAISsetaside,webelievethemostprudentcourseof i  actioninfurtheranceofthepublicinterestwouldbefortheCoastGuardtonegotiatewitheachindividualmaritimeVPClicenseetoselectnarrowbandfrequenciesforAISuse.Withinsixmonthsoftheconclusionoftheauction,wewillrequirethattheCoastGuardandeachmaritimeVPClicenseebegintonegotiateaplanspecifyingnarrowbandduplexchannelpairswithinthemaritimeVPC(includingareasbeyondthemajorwaterways).TheCoastGuardproposalshouldspecifywhichfrequencies,uptotwo,theCoastGuardseeks.WenotethepossibilitythatthechannelsneednotbethesamethroughoutthemaritimeVPC.IfthemaritimeVPClicenseeobjectstotheCoastGuardproposal,itshallmakeacounterproposalwithinthreemonthsofreceiptoftheCoastGuard'splan.ThefinalagreementshallsetasideuptotwochannelpairsthroughoutthemaritimeVPC,orimplementwhateverotherarrangementisamenabletobothparties(e.g.,morethantwochannelpairsinsomeplaces,andoneornochannelpairselsewhere).Ifgoodfaithnegotiations  yieldnoagreementwithinoneyearofthedatetheCoastGuardsubmitteditsinitialproposal,theCoastGuardmayasktheCommissiontorevisitthisissueandselectthechannelsandlocations.WepreferthisproceduretosettingchannelsasideinadvancebecausewebelievethatitwillallowtheCoastGuardtimetodevelopitsAISplansfullyandcoordinateAISfrequencieswithneighboringcountries.X E  157      ׀Wealsobelievethatsuchapproachwillenhanceeach  maritimeVPClicensee'sabilitytopursueitsownbusinessplanandallowthepartiestodeterminehowmanychannelsareneededineachlocation.Inaddition,thisapproachavoidstheproblemsassociatedwithuniformlysettingasideChannel87B,discussedabove.  21  50  .3   ` Finally,initspetitionforreconsiderationoftheSecondReportandOrder,MariTELcontendsthat  theCommissionerredindecliningtoadoptrulesregardingmaritimesharingoflandmobilefrequencies,| E  158      ׀andargues    thatsuchrulescouldbeadoptednowandheldinabeyancependingdevelopmentsinotherproceedings.  E  159      ׀However,the !m! continuedvalidityofoneofthepremisesofthatsharingproposal E  160      ׁ-thatfewPLMRlicenseesoperatewithin80 ]":"  kilometersoftheUnitedStatescoastline(  E  161      ׀isquestionableinlightofourdecisiontoconsolidatethePLMR *## servicesinanefforttointroducemoreflexibility. E  162      ׀Moreover,webelievethatgoingforwardwithasharingproposal #  couldimpedetheorderlyandeffectiveresolutionoftheissuesinourpendingproceedingconcerningtheintroductionofmarketbasedincentivesforPLMRspectrum.X E  163      ׀MariTELhasnotconvincedusthatthepublicinterestwouldbeserved  byourmakingadecisiononsharingbeforereachingafinaldecisioninthatproceeding;thus,wedeclinetodoso.   8. ` Operationalflexibility Y $    22  51  .3         `   Proposal.TheCommissionnotedintheSecondFurtherNoticeitsconclusioninanotherproceeding   thatbroadbandandnarrowbandCMRSlicenseesshouldhaveoperationalflexibilitytoprovidefixed,mobile,orhybridservices, E  164      ׀andsoughtcommentonwhethertoaffordsuchflexibilitytopubliccoaststations.F E  165      ׀ P-    23  52  .3   ` Decision.WeagreewithMariTELthatallowingVHFpubliccoaststationstoprovidefixed,mobile,   orhybridCMRSservicesonacoprimarybasiswithmobileserviceswillbebeneficial. E  166      ׀Webelievethataffording   publiccoaststationlicenseesoperationalflexibilitywillenhancetheirabilitytomeetcustomerrequirementsanddemand,andpromoteregulatorysymmetrybetweenmaritimeCMRSprovidersandotherCMRSproviders.Wefurtherbelievethatthisapproach,combinedwithourenforcementoftheconstructionrequirementsadoptedtoday,willaddressMariTEL'sconcernaboutpreservingthedistressandsafetyfeaturesoftheMaritimeServices,particularlyalongwaterways.f  E  167            9. ` Regulatorystatus )` R/   24  53  .3         ` Proposal.TheCommissionnotedintheSecondFurtherNoticethatallowinggeographicarealicensees,  partitionees,ordisaggregateestousetheirspectrumtoprovideavarietyofcommercialorprivatemobilecommunicationswouldmakeitdifficulttodeterminetheregulatorystatusofeachlicensee.  E  168      ׀TheCommissionproposed ~[ toestablishapresumptionthatgeographicarealicenseesaretelecommunicationscarriers,or,inthealternative,torelyonapplicantstospecifythetypeofservice(s)theyintendtoprovideinsufficientdetailtoenabletheCommissiontodeterminewhethertheparticularlicenseewillbeaCMRSoraPMRSprovider,  E  169      ׀i.e.,whetherthelicensee  offersamobileservicethatisprovidedforprofit,interconnectedwiththepublicswitchednetwork,andisavailabletothepublicorasubstantialportionofthepublic. E  170      ׀Italsoproposedtoallowanyinterestedpartytochallenge \ theregulatorystatusoriginallygrantedtoageographicarealicensee. E  171      ׀TheCommissionsoughtcommentonthis # approachandonthemostefficientmannerinwhichtoadministertherequirementsoftheCommunicationsActwithrespecttopubliccoaststationlicensees.X E  172      ׀    25  54  .3   ` Decision.Weconcludethat,asageneralmatter,geographicarealicenseesshouldbesubjecttoa W 4 presumptionthattheyaretelecommunicationscarriersundertheCommunicationsAct,becausethisisthecurrentnatureofthepubliccoastservice.Wenote,however,thatthispresumptioncanberebuttedbyspecificallyidentifyingthetypeofserviceorservicesthelicenseeintendstoprovideinsufficientdetailtoenabletheCommissiontodeterminewhetherthenatureoftheservicewillbeCMRSorPMRS,commoncarrierornoncommoncarrier. E  173      ׀Asinotherlicensing  h contexts,x E  174      ׀weintendtorelyprimarilyuponapplicants'representationsregardingtheirregulatorystatuswhile X5  affordinginterestedpartiestheopportunitytodemonstratethatalicenseehasnotrebuttedourpresumption,providedthesepartiespresentspecificallegationsoffactsupportedbyanaffidavitofapersonorpersonswithpersonalknowledge. E  175      ׀IfapubliccoaststationlicenseewhoisauthorizedtoprovideonlyPMRSornoncommoncarrierservice   actuallyprovidesCMRSorcommoncarrierserviceunderthatlicense,itwillbesubjecttoappropriateenforcementaction.  E  176      ׀Thisapproachwillallowustocarryoutourregulatoryresponsibilitieswithoutimposingahardshipupon Y6  licensees.  26  55  .3   ` Inaddition,wedisagreewithMariTEL'ssuggestionthatweshouldforbearfromimposingcommon   carrierrequirementsonpubliccoaststationspursuanttoSection10oftheCommunicationsAct,[  E  177      ׀whichregulation j MariTELcontendsis"unnecessaryandnotinthepublicinterest."   E  178      ׀MariTEL'srequestcannotbegrantedbecauseit Z7 istoovague,bothastothespecificprovisionsfromwhichweshouldforbearfromenforcing, s E  179      ׀andastowhy '  forbearancewouldbeinthepublicinterest.  E  180      ׀Wenote,however,thatwealreadyforbearfromenforcingsomecommon  carrierrequirementsagainstCMRSoperators,  E  181      ׀andthatfurtherforbearanceisunderconsideration. X E  182       #     10. ` Safetywatch Qt    27  56  .3         ` Proposal.  Publiccoaststationsservingrivers,bays,andinlandlakesmustmaintainacontinuous O , safetywatchonmarineVHFChannel16(156.800MHz). E  183      ׀Presently,publiccoastlicenseesmayrequestanexemptionfrom   thisrequirementupondemonstratingthatfederal,state,orlocalgovernmentsmaintainacontinuouswatchoverninetyfivepercentofthestation'sservicearea. E  184      ׀TheCommissionproposedintheSecondFurtherNoticetorelievepublic   coaststationsoftheChannel16watchrequirementbyruleincaseswherefederal,state,orlocalgovernmentsalreadymaintaintherequisitecoverage./ E  185      ׀ P-    28  57  .3   ` Decision.Weadoptoursafetywatchproposal,withsomemodificationsrequestedbytheCoast   Guard.  E  186      ׀Specifically,acoaststationwherefederal,state,orlocalgovernmentsmaintainacontinuouswatchover   ninetyfivepercentofthestation'sserviceareawillnotberequiredtomaintainasafetywatch,providedthatthelicensee(1)determinesthatthe"ninetyfivepercent"criteriaismet,(2)isresponsiblefornotifyingtheappropriateCoastGuarddistrictofficethirtydayspriortodiscontinuingthewatch,and(3)isresponsibleforresumingthewatchattherequestoftheCoastGuardorCommission.WenonethelessnotethattheCoastGuardmayrequireapubliccoastlicenseetocontinueorresumeitssafetywatchtemporarilyduringasystemoutageoruntilareplacementCoastGuardsystemisinplace,orpermanently.Notwithstandingourdecisionhere,allcoaststationsshall,ifrequiredbytheCoastGuard,remaincapableofeitherimmediatelyresumingthewatch,orofprovidingtheCoastGuarddirectdialupaccesstothenecessaryChannel16transceiveratnocharge,sotheCoastGuardcanmaintainthewatch.Inthisconnection,wenoteO  E  187      ׀theCoastGuard'sdescriptionoftheshortcomingsofitsVHFNationalDistress  System,whichisagingandhasmanycoveragegaps.w  E  188      ׀Consequently,werejectMMR'ssuggestionthatthesafetywatch  requirementbeeliminatedbecauseweconcludethatitscontinuationisinthepublicinterestinthatitpromotessafetyatsea. E  189      ׀Inaddition,asMariTELandOrionnote,MMRincorrectlycomparesotherCMRSproviders,whohaveno S0 safetywatchrequirement,totheMaritimeServices,failingtotakeintoaccountthatotherservicesareintendedto befullyautomated,andthattheyemergedinadifferentcontextfromtheMaritimeServices,withtheirpublicsafety  component. E  190      ׀ #    29  58  .3   ` IntheSecondReportandOrder,weauthorizedautomatedinterconnectionandthereforeeliminated  therequirementthateachradiotelephonepubliccoaststationhavealicensedradiotelephoneoperatoratthestation'scontrolpoint.X E  191      ׀MariTELarguesinitspetitionforreconsiderationthatweshouldhaveretainedarequirementthat W 4 therealwaysbeanoperatorondutysomewhereinthesystem(thoughnotnecessarilyatthenearestcontrolpoint)withwhomavesselcancommunicateduringanemergency. E  192      ׀OrionopposesanysuchrequirementforAMTSstations,onthe   groundsthatsuchstationsareintendedtobefullyautomated.t E  193      ׀Wearenotpersuadedthatthecontinuedexistence   ofpubliccoaststationsbeingrequiredtomaintainasafetywatchjustifiesthereinstatementandexpansionoftheoperatorrequirementforotherstations.TheCoastGuarddidnotcontendthateliminatingtheoperatorrequirementwouldjeopardizesafetyatsea, E  194      ׀thoughitnotesthattheMariTELproposalwouldbeonemeansofmaintaininganexempt %  station'sabilitytoresumeasafetywatchuponrequest. E  195      ׀Amendingtheoperatorrequirementinthemannerproposed   byMariTELwouldamounttoreinstatingthatrequirementforindividual,nonintegratedstations,andtocreatinganewrequirementforAMTSstationsandautomatedmultistationsystems,whichalreadywereexemptfromtheoperatorrequirement,andMariTELhasnotshownthatit'sproposalwouldproduceabenefitcommensuratewithsuchaburden.  E  196      ׀ Y6  Thus,wedeclinetoadoptMariTEL'sproposal.    B. ` CompetitiveBiddingProcedures     1. ` UseofCompetitiveBidding  J'     2:  59  .3   ` Proposal.TheCommission,intheCMRSSecondReportandOrder,classifiedthepubliccoastservice,  includingVHF,highseas,andAMTSpubliccoaststations,asaCMRS.  E  197      ׀Subsequently,intheCompetitiveBiddingSecond  ReportandOrder,theCommissiondeterminedthatmutuallyexclusiveapplicationsforpubliccoaststationlicenses vS wouldberesolvedthroughcompetitivebidding.<  E  198      ׀ItthereforeproposedintheSecondFurtherNoticetoprescribe C  competitivebiddingrulesanddesignatedentityprovisionsforauctioningpubliccoastspectrum. c E  199      ׀     2;  60  .3   ` FollowingreleaseoftheSecondFurtherNotice,CongresspassedtheBalancedBudgetActof1997,  whichexpandedandextendedtheCommission'sauctionauthority.! E  200      ׀Section309(j)(2)oftheCommunicationsAct #  formerlystatedthatmutuallyexclusiveapplicationsforinitiallicensesorconstructionpermitswereauctionableiftheprincipaluseofthespectrumwasforsubscriptionbasedservicesandcompetitivebiddingwouldpromotetheexpressedobjectivesoftheAct."X E  201      ׀AsamendedbytheBalancedBudgetAct,Section309(j)oftheCommunicationsAct  g providesthat,"If...mutuallyexclusiveapplicationsareacceptedforanyinitiallicenseorconstructionpermit,then,exceptasprovidedinparagraph(2)theCommissionshallgrantthelicenseorpermittoaqualifiedapplicant $  throughasystemofcompetitivebiddingthatmeetstherequirementsofthissubsection."# E  202           2<  61  .3   ` Decision.Severalcommenterssupporttheuseofcompetitivebidding.$p E  203      ׀Whilesomepartiesoppose  h theuseofcompetitivebiddingtograntlicensesforthepubliccoastspectrum,theircontentionsareinconsistentwithourearlierconclusionthatthepubliccoastserviceissubjecttocompetitivebidding,whichconclusionisunchangedbytheBalancedBudgetAct.% E  204      ׀Asnoted,theBalancedBudgetActprovidesthatalllicensesandconstruction   permitsforwhichmutuallyexclusiveapplicationsareaccepted,withcertainexceptionsnotrelevanthere,shallbegrantedbymeansofcompetitivebidding.&P  E  205      ׀Wethereforebelievethatwelackdiscretiontoresolvemutuallyexclusive i  publiccoastlicenseapplicationsbyanymeansotherthancompetitivebidding.Similarly,theBalancedBudgetActexpresslyprovidesthatcompetitivebiddingshallnotbeusedforpublicsafetyradioservices,sotheinlandVPCchannelpairssetasideforpublicsafetyuseshallbedistributedbyothermeans,tobedecidedaspartofourpendingpublicsafetyproceeding.'  E  206      ׀Therefore,wereiteratethatweshallemploycompetitivebiddingprocedurestoresolve   mutuallyexclusivepubliccoaststationapplications.   2. ` CompetitiveBiddingIssues ً '   2=  62  .3   ` Proposal.TheSecondFurtherNoticewasreleasedshortlyafterthePart1OrderandNoticeof  ProposedRulemakingthatadoptedcertainrulestostreamlineauctionproceduresandproposeduniformcompetitive c biddingrulesthatwouldapplygenerallytoallauctionableservices.(p  E  207      ׀Pendingtheadoptionoffinaluniform S0 competitivebiddingrules,however,theCommissionproposedtoadoptservicespecificrulestogovernpubliccoastauctions.) E  208      ׀Inaddition,itsoughtcommentintheSecondFurtherNoticeontheestablishmentofa"smallbusiness"   definitionforpubliccoastspectrum,notingourintention,asiteratedintheSecondMemorandumOpinionandOrder  inthecompetitivebiddingdocket,ofestablishingdefinitionsfor"smallbusiness"onaservicebyservicebasis.* E  209      ׀ #  Specifically,theCommissionsoughtcommentonwhetherweshouldapplyoneoftheexisting"smallbusiness"definitionstopubliccoaststationsoradoptanewdefinition,andcommentonwhatsmallbusinessprovisionsandtermsshouldbeofferedtopubliccoastsmallbusinesslicensees.+ E  210      ׀TheCommissiontentativelyconcludedthat,forpurposes  g ofdeterminingsmallbusinessstatusofpubliccoastapplicants,itwouldattributethegrossrevenuesofalltheapplicants'affiliates,itscontrollingprincipals,andtheiraffiliates,andthatthedefinitionofaffiliateinthepubliccoastcontextshouldincludeanexceptionforIndiantribes,AlaskaRegion,andVillageCorporations., E  211      ׀The   Commissionalsotentativelydecidedagainstprovidingspecialconsiderationinthecompetitivebiddingproceduresforincumbentlicensees.- E  212        h   2>  63  .3   ` InauthorizingtheCommissiontousecompetitivebidding,Congressmandatedthatwe"ensurethat %  smallbusinesses,ruraltelephonecompanies,andbusinessesownedbymembersofminoritygroupsandwomenaregiventheopportunitytoparticipateintheprovisionofspectrumbasedservices.".> E  213      ׀Congressfurtherprovidedthat,in   establishingeligibilitycriteriaandbiddingmethodologies,theCommissionshallpromote"economicopportunityandcompetition...byavoidingexcessiveconcentrationoflicensesandbydisseminatinglicensesamongawidevarietyofapplicants,includingsmallbusinesses,ruraltelephonecompanies,andbusinessesownedbymembersofminoritygroupsandwomen."/  E  214      ׀TheCommissionthereforesoughtcommentintheSecondFurtherNoticeonwhethersmallbusiness   provisionsaresufficienttopromoteparticipationbybusinessesownedbyminoritiesandwomenandruraltelephonecompanies.0V  E  215      ׀Totheextentthatcommentersproposedadditionalprovisionstoensureparticipationbyminorityand j womenownedbusinesses,theywereinvitedalsotoaddresshowsuchprovisionsshouldbecraftedtomeettherelevantstandardsofjudicialreview.1  E  216       '   2?  64  .3   ` Decision.Recently,weadoptedthePart1ThirdReportandOrder,whichestablishesauniformset  ofprovisions,basedonourexperiencewithauctionstodate,andallowsustoconductfutureauctionsinamoreconsistent,efficient,andeffectivemanner.2  E  217      ׀Therefore,wewillfollowtheuniformprovisionsadoptedinthePart [8 1ThirdReportandOrderformostofthecompetitivebiddingissuesraisedintheSecondFurtherNotice,andtheuniform ( competitivebiddingrulesfoundinSubpartQofPart1oftheCommission'sruleswillapplytotheauctionofpubliccoastspectrum.Consistentwiththisapproach,matterssuchastheappropriatecompetitivebiddingdesignfortheauctionofpubliccoastspectrum,aswellasminimumopeningbidsorreservepricesandmaximumbidincrements,will l bedeterminedbytheWirelessTelecommunicationsBureaupursuanttoitsdelegatedauthority.3 E  218      ׀InthisThirdReport # andOrderandMemorandumOpinionandOrder,however,weadoptservicespecificprovisionsapplicabletodesignated  entitiesbiddinginthepubliccoastspectrumauctions.Wenote,however,thatwemayseekcommentinafutureproceedingregardingwhethertheseprovisionsshouldbemodifiedforauctionsofspectrumallocatedtothehighseasandAMTSservices.4X E  219       W 4   2@  65  .3   ` AswenotedintheSecondFurtherNotice,ourgoalinadoptingspecialsmallbusinessprovisionsis   topromoteandfacilitatetheparticipationofsmallbusinessesinthepubliccoastauctionsandintheprovisionofservice.5 E  220      ׀Forpurposesofpubliccoastauctions,wewilldefine"small"businessesasentitiesthat,togetherwith  h controllinginterestsandaffiliates,haveaveragegrossrevenuesfortheprecedingthreeyearsnottoexceedfifteenmilliondollars.6x E  221      ׀Wewilldefine"verysmall"businessesasentitiesthat,togetherwithcontrollinginterestsand %  affiliates,haveaveragegrossrevenuesfortheprecedingthreeyearsnottoexceedthreemilliondollars.MariTELproposesthatsmallbusinessesbedefinedasthosewithgrossrevenuesnotexceedingthreemilliondollars(averagedoverthepastthreeyears),becausetheCommissionhasemployedthisstandardelsewhereanditrepresentsthelevelofincomeasmallbusinessintheMaritimeServicestodaycanexpecttoproduce,whileahigherlevelwouldallowlargercompaniestocompetewiththesamebiddingcreditsascurrentpubliccoastlicensees.7; E  222      ׀However,wesharetheconcern &  ofOrionandMurrayCohenthatasingledefinitionofsmallbusinesscouldeffectivelyexcludefromparticipationanumberofcurrentlicenseesthataretoosmalltocompetewithlargewellcapitalizedentitiesunlesstheyaremadeeligibleforadditionalbiddingcredits.8  E  223      ׀Also,wenotethatalloftheservicesMariTELcitedasprecedentforusing j athreemilliondollarstandardalsofeaturedasecondtierwithathresholdofnotmorethanfifteenmilliondollarsingrossrevenues.Thus,webelievethattwotiersofbiddingcreditswillallowcurrentpubliccoastlicenseestocompetefavorablywithlargerentities,withoutdenyingentitieswithrelativelysmallgrossrevenuestheopportunitytoparticipatemeaningfullyintheauctions.  2A  66  .3   ` WedecidedinthePart1ThirdReportandOrdertocontinuetodefinesmallbusinessesaswehavein [8 thepast,basedonthecharacteristicsandcapitalrequirementsofthespecificservice,9S  E  224      ׀ratherthan,assuggested ( byMariTEL,ontheprospectiveandlikelyapplicants'assets.:  E  225      ׀Thisapproachhasaffordedusdesirableflexibility  tobenefitsmallbusinesses,andisconsistentwiththeSmallBusinessAdministration'spracticeofapprovingsmallbusinesssizestandardsonaservicebyservicebasis.; E  226      ׀WedeterminedinthePart1ThirdReportandOrderthatour l servicespecificsmallbusinessdefinitionsthenceforthwouldbeexpressedintermsofaveragegrossrevenues,whichwebelieveprovidesanaccurate,equitable,andeasilyascertainablemeasureofbusinesssize.< E  227      ׀Assets,being  potentiallyfluidandsubjecttoinconsistentvaluation(e.g.,intangibles),aregenerallymuchlessascertainable  thangrossrevenuesornumbersofemployees.AlthoughwehaveadoptedanassettestforeligibilityforparticularblocksoflicensesinbroadbandPCSauctions,wehaveneverbeforeemployedanassettestforeligibilityforsmallbusinesssizestandards.WealsonotethattheSmallBusinessAdministration,therulesofwhichhaveformedthebasisformuchofourownconsiderationofsmallbusinessprovisions,presentlydoesnotemployassettestsinitsbusinesssizestandardsexceptinthecontextofnationalandcommercialbanks,savingsinstitutions,andcreditunions.=X E  228      ׀Nor   doestheSmallBusinessAct'sstatutorydefinitionofsmallbusinesssizeuseatotalassetstest.> E  229      ׀Consistentwith  h thePart1ThirdReportandOrder,wethereforerejectMariTEL'ssuggestionandwillnotadoptanassettestforthe X5  auctionofpubliccoastlicenses.  2B  67  .3   ` Sincewereceivednocommentstothecontrary,wealsoadopt,withaslightmodification,our   tentativeconclusiontoattributethegrossrevenuesoftheapplicant,itscontrollingprincipalsandtheiraffiliates.Specifically,wereferto"controllinginterests"ratherthan"controllingprincipals."Inaddition,weprovideadefinitionof"controllinginterest"toclarifytheapplicationoftheattributionruleindeterminingwhetheranentityqualifiestobidasasmallbusiness.Incalculatinggrossrevenuesforpurposesofsmallbusinesseligibility,applicantswillberequiredtocountthegrossrevenuesofthecontrollinginterestsoftheapplicantandtheiraffiliates.?x E  230      ׀ThisapproachisconsistentwithourproposalinthePart1SecondFurtherNotice,@> E  231      ׀andis j similartotheattributionruleswehaveemployedfortherecentLMDSand800MHzSMRauctionproceedings.A  E  232      ׀  Z7   2C  68  .3   ` A"controllinginterest"includesindividualsorentitieswithdejureanddefactocontrolofthe  applicant.Dejurecontrolis50.1%ofthevotingstockofacorporationor,inthecaseofapartnership,thegeneral  partners.Defactocontrolisdeterminedonacasebycasebasis,andincludesthecriteriasetforthinEllis k Thompson.B  E  233      ׀WerecentlysoughtcommentinthePart1SecondFurtherNoticeonwhetherweshouldimposeaminimumequity [8 requirement(e.g.,fifteenpercent)onanypersonorentityidentifiedasacontrollinginterest.C E  234      ׀The"controlling ( interest"definitionalsoprovidesspecificguidanceoncalculationofvarioustypesofownershipinterests.Forpurposesofcalculatingequityheldinanapplicant,thedefinitionprovidesforfulldilutionofcertainstockinterests,warrants,andconvertibledebentures.D E  235      ׀Inaddition,thedefinitionprovidesforattributionof  partnershipandotherownershipinterestsincludingstockinterestsheldintrust,nonvotingstock,andindirectownershipthroughinterveningcorporations.Onceprincipalsorentitieswithacontrollinginterestaredeterminedunderthedefinition,onlytherevenuesofthoseprincipalsorentitiesandtheiraffiliateswillbecountedforsmallbusinesseligibility.  2D  69  .3   ` Whenanapplicantcannotidentifycontrollinginterestsunderthedefinition,therevenuesofall  h interestholdersintheapplicantandtheiraffiliateswillbecounted.Forexample ,ifacompanyisownedbyfourentities,eachofwhichhastwentyfivepercentvotingequityandnoshareholders'agreementorvotingtrustgivesanyoneofthemcontrolofthecompany,therevenuesofallfourentitiesmustbecounted.Treatingsuchacorporationinthiswayissimilartoourtreatmentofageneralpartnership"allgeneralpartnersareconsideredtohaveacontrollinginterest.Thisrule,webelieve,lookstosubstanceoverforminassessingeligibilityforsmallbusinessstatus.  2E  70  .3   ` Wenotethatourintenthereistoprovideflexibilitythatwillenablelegitimatesmallbusinesses   toattractpassivefinancinginahighlycompetitiveandevolvingtelecommunicationsmarketplace.EX E  236      ׀Webelievethat   thiscontrollinginterestthresholdwillfunctioneffectivelytoensurethatonlythoseentitiestrulymeritingsmallbusinessstatusareeligibleforsmallbusinessprovisions.Inparticular,webelievethatthedejureanddefacto Z7 conceptsofcontrolusedtodeterminecontrollinginterestinanapplicantandtheapplicationofouraffiliationruleswilleffectivelypreventlargerfirmsfromillegitimatelyseekingstatusasasmallbusiness.Moreover,aswediscussedinthePart1ThirdReportandOrder,webelievethatrequiringdetailedownershipinformationwillensure  thatapplicantsclaimingsmallbusinessstatusqualifyforsuchstatus,andensurecompliancebyallapplicantswithspectrumcapsandotherownershiplimits.FJ E  237      ׀Therefore,weemphasizethatbidderswillbesubjecttotheownership [8 disclosurerequirementssetforthinSection1.2112ofourrules.G E  238      ׀ (   2F  71  .3   ` MariTELandRosscontendthatincumbentpubliccoastservicelicenseesshouldbegivenspecial  considerationinourcompetitivebiddingprocedures,becauseincumbentlicenseesmerelyextendingtheircoveragewouldprovideservicesoonerthannewgeographicarealicensees,andthepublicsafetynatureofthepubliccoast servicemandatesproceduresthatwillleadtoprompterservice.Hj  E  239      ׀WeagreewithBRC,I  E  240      ׀however,thatnewentrantsand ) incumbentsshouldhaveanequalopportunitytoobtainspectrum.J E  241      ׀Moreover,wehavenevergivenincumbentssucha #  benefit(whichappearstobeprohibitedbySection309(j)(4)(D)oftheCommunicationsAct),andanyincumbentsthatqualifycanavailthemselvesofthespecialconsiderationavailabletosmallbusinesses.K" E  242      ׀    2G  72  .3   ` Inaddition,wenotethatwereceivednocommentssuggestinganyparticularlevelofbiddingcredits. W 4 Thus,wewillconformourbiddingcreditlevelsforthepubliccoastauctionstothescheduleadoptedinthePart1 $  ThirdReportandOrder.L E  243      ׀Specifically,thePart1ThirdReportandOrderadoptedbiddingcreditsofthirtyfive   percentforentitieswithannualgrossrevenuesnottoexceedthreemilliondollars,andtwentyfivepercentforentitieswithannualgrossrevenuesnottoexceedfifteenmilliondollars.M> E  244      ׀Inconformitywiththesmallbusiness  h sizedefinitionsthatweadoptherein,wethusdeterminethatentitiesthat,togetherwithcontrollinginterestsandaffiliates,haveaveragegrossrevenuesfortheprecedingthreeyearsnottoexceedthreemilliondollarswillreceiveathirtyfivepercentbiddingcredit,andentitiesthat,togetherwithcontrollinginterestsandaffiliates,haveaveragegrossrevenuesfortheprecedingthreeyearsnottoexceedfifteenmilliondollarswillreceiveatwentyfivepercentbiddingcredit.Inaddition,inthePart1ThirdReportandOrder,weheldthatinstallmentpaymentswillnot i  beusedintheimmediatefutureasameansoffinancingsmallbusinessparticipationinCommissionauctions,andwereceivednocommentinthisproceedingontheuseofinstallmentpayments.N E  245      ׀Thus,installmentpaymentswillnotbe &  availabletopubliccoastauctionparticipantsforthereasonsdiscussedinthePart1ThirdReportandOrder.     2H  73  .3   ` Wealsoreceivednocommentsonwhethersmallbusinessprovisionsaresufficienttopromote j participationbybusinessesownedbyminoritiesandwomenandruraltelephonecompanies.Nocommenterproposedadditionalprovisionstoensureparticipationbyminorityandwomenownedbusinesses,orsuggestedhowsuchprovisionsshouldbecraftedtomeettherelevantstandardsofjudicialreview.Weremaincommittedtomeetingthestatutoryobjectivesofpromotingeconomicopportunityandcompetition,ofavoidingexcessiveconcentrationoflicenses,andofensuringaccesstonewandinnovativetechnologiesbydisseminatinglicensesamongawidevarietyofapplicants,includingsmallbusinesses,ruraltelephonecompanies,andbusinessesownedbymembersofminoritygroupsandwomen.However,commentersinthisproceedinghavesubmittednosuggestions,evidence,ordatatosupportraceorgenderbasedauctionprovisions.Therefore,weconcludethatwedonothaveasufficientrecordtosupportsuchspecialprovisionsatthistime.AswenotedinthePart1ThirdReportandOrder,wehavecommencedaseriesof  studies,andhaveotherstudiesintheplanningprocess,toexaminebarriersencounteredbyminoritiesandwomenintheauctionsprocessandthesecondarymarketforlicenses.O^  E  246      ׀Oncethosestudiesarecomplete,wewillhaveamore \9 extensiverecordtojudgeourabilitytoprovidethroughourauctionsprogrameconomicopportunityamongbusinessesownedbymembersofminoritygroupsandwomen,asrequiredinSection309(j).P  E  247      ׀Wealsobelievethatour  standardization,throughthePart1ThirdReportandOrder,oftherulesregardingdefinitionsofeligibleentities, # unjustenrichment,andbiddingcreditswillassistsmall,minorityandwomenownedbusinessesbecausetheresultingpredictabilitywillfacilitateeffectivebusinessplanningandcapitalaccumulation.Q E  248                @'  IV.PROCEDURALMATTERS )Ԉ W 4    A. ` SuspensionofAcceptanceandProcessingofApplications      2I  74  .3   R  S  R  T  R  T  ` IntheSecondFurtherNotice,theCommissiontemporarilysuspended,untilMarch17,1998,acceptance { X ofpubliccoaststationandPLMRapplicationsfornewlicensestouseVHFspectrum(156162MHz),amendmentstosuchapplications,applicationstomodifyexistinglicenses,andamendmentstosuchmodifications,exceptapplicationsinvolvingrenewals,transfers,assignments,andmodificationsthatproposedneitherto(1)expandastation'sserviceareanor(2)obtainadditionalpubliccoastVHFspectrum.UX E  249      ׀Italsosuspendedtheprocessingofpubliccoaststation   applicationstouseVHFspectrumthatwerependingwhentheSecondFurtherNoticewasadopted,exceptthose(1)that |Y  werenotmutuallyexclusivewithotherapplicationsasofthedatetheSecondFurtherNoticewasadopted,and(2)as I&  towhichtherelevantperiodforfilingcompetingapplicationshadexpiredasofthatdate.V E  250      ׀OnMarch17,1998,the   WirelessTelecommunicationsBureauextendedthesuspensionuntiltheeffectivedateofthefinalrulesadoptedinthis   ThirdReportandOrderandMemorandumOpinionandOrder.Wx E  251           2J  75  .3   ` DuetothetransitiontogeographicarealicensinginthisThirdReportandOrderandMemorandum J' OpinionandOrder,allapplicationstouseVHFpubliccoastspectrumtheprocessingofwhichwassuspendedshallbe  dismissed.Thisactionisconsistentwiththegeneralapproachwehavetakeninotherserviceswherewehavetransitionedtogeographicarealicensingandauctionrules.X E  252      ׀Inaddition,thefreezeonfilingnewapplicationsto  usethisspectrumshallremainineffectbeyondthedatethatthefinalrulesadoptedhereinbecomeeffective,anduntilsuchtimeastheWirelessTelecommunicationsBureaubeginstoacceptapplicationsfortheVHFpubliccoastauction.WedeclinethesuggestionofUTCandITA/CICStoliftthefreezeonPLMRapplicationsproposingtosharepubliccoastVHFspectrum.Y/  E  253      ׀Theycontendthatsuchlicensespresentnobarriertotheproposedgeographiclicensing  processortoexistingorfuturemaritimeservices,butweconcludethatmaintainingthefreezeinallareasforallapplicantsisnecessaryfortheorderlyandeffectiveimplementationofthedecisionsmadeinthisproceeding.  2K  76  .3   ` InthePart1ThirdReportandOrder,theCommissiondelegatedtotheChiefoftheWireless  TelecommunicationsBureauauthoritytoprescribeandsetforthproceduresforindividualauctions.Z  E  254      ׀TheWireless  TelecommunicationsBureaushallimplementauctionproceduresforVHF(156162MHz)publiccoaststations,includingthegeneraldesignandtimingoftheauctions;thenumberandgroupingofauthorizationstobeofferedinaparticularauction;themannerofsubmittingbids;theamountofbidincrements;activityandstoppingrules;andapplication M"*" andpaymentrequirements,includingtheamountofupfrontpayments;andshallannouncesuchproceduresbyPublicNotice.    B. ` AdditionalMatters   g   2L  77  .3   [  [  [  ` IntheSecondReportandOrder,theCommissiondeletedtheoperatorrequirementforradiotelephone   coaststations,butdeclinedtoaddressMMR'ssuggestiontodeletetheradiotelegraphcoaststationoperatorrequirement.\ E  255      ׀TheCommissionstatedthatitwouldrequestcommentsontheissueintheSecondFurtherNotice,but   itinadvertentlyfailedtodoso.]X E  256      ׀MMRagainhassuggestedeliminatingtheoperatorrequirementforradiotelegraph  ` coaststations,^ E  257      ׀butwecannotactontheproposalbecausepotentiallyaffectedpartieshavenotreceivedadequate P-  notice._t E  258      ׀Weconcludethatthisissuepresentlyisnotripefordecision,butwemayrevisititatalatertime.      C. ` RegulatoryFlexibilityAct e        2M  78  .3   `  `  `  `  a AppendixBcontainsaFinalRegulatoryFlexibilityAnalysiswithrespecttothisThirdReportand I&  OrderandMemorandumOpinionandOrder.      D. ` PaperworkReductionActof1995Analysis .        2N  79  .3   b  b  b  ` ThisThirdReportandOrderandMemorandumOpinionandOrdercontainsneitheranewnoramodified B informationcollection.    E. ` OrderingClauses      2O  80  .3   c  c  c  ` AuthorityforissuanceofthisThirdReportandOrderandMemorandumOpinionandOrderiscontained ; inSections4(i),4(j),7(a),303(b),303(f),303(g),303(r),307(e),332(a),and332(c)oftheCommunicationsActof1934,asamended,47U.S.C.154(i),154(j),157(a),303(b),303(f),303(g),303(r),307(e),332(a),and332(c).  2P  81  .3   ` Accordingly,ITISORDEREDthatParts20,80,and90oftheCommission'sRules,47C.F.R.Parts20, oL 80,90,and95,AREAMENDEDasspecifiedinAppendixF.  2Q  82  .3   ` ITISFURTHERORDEREDthat,exceptforthedismissalsetforthinparagraph83andthetemporary  suspensionsetforthinparagraph84,thisThirdReportandOrderandMemorandumOpinionandOrderwillbeeffective    60daysafterpublicationintheFederalRegister.  2R  83  .3   ` ITISFURTHERORDEREDthat,effective July6,1998,pendingapplicationstousepubliccoaststation  ## spectrumunderParts80or90oftheCommission'sRules,47C.F.R.Parts80and90thatwereheldinabeyancepursuanttotheSecondReportandOrderandSecondFurtherNoticeofProposedRulemakingandApplicationsforVeryHigh $% Frequency(VHF)PublicCoastSpectruminthe156162MHzBands,Order,DA98522(WTBreleasedMar.17,1998),ARE q%N& DISMISSED.  '(   2S  84  .3   ` ITISFURTHERORDEREDthat,effective July6,1998,nonewapplicationstouseVHFpubliccoast # stationspectrumunderParts80or90willbeacceptedforfiling,exceptapplicationsthatdonotproposeto(1)expandastation'sservicearea,or(2)obtainadditionalpubliccoastspectrumfrequencies,untiltheWirelessTelecommunicationsBureaubeginstoacceptapplicationstoparticipateintheVHFpubliccoastauction,whichshallbeannouncedbyPublicNotice.  2T  85  .3   ` ITISFURTHERORDEREDthattheCommission'sOfficeofPublicAffairs,ReferenceOperationsDivision,   SHALLSENDacopyofthisThirdReportandOrderandMemorandumOpinionandOrder,includingtheFinalRegulatory   FlexibilityAnalysis,totheChiefCounselforAdvocacyoftheSmallBusinessAdministration.  2U  86  .3   ` ITISFURTHERORDERED,pursuanttoSection1.46(b)oftheCommission'sRules,47C.F.R.1.46(b), %  thattheMotiontoAcceptLateFiledCommentsfiledbyMariTELCorporationISGRANTED.  2V  87  .3   ` ITISFURTHERORDEREDthatOrionTelecom'sPetitiontoSetAsidetheCoastGuardPetitionforRule i  MakingISDENIED.  2W  88  .3   ` ITISFURTHERORDEREDthatthePetitionforReconsiderationfiledbyMariTELCorporationISDENIED.      F. ` ContactforInformation ~ j   2X  89  .3   d  d  d  `  e Forfurtherinformation,contactScotStoneoftheWirelessTelecommunicationsBureau,PublicSafety  andPrivateWirelessDivision,PolicyandRulesBranch,at(202)4180680orviaEMailto"sstone@fcc.gov";orAnneNapolioftheWirelessTelecommunicationsBureau,AuctionsandIndustryAnalysisDivision,LegalBranch,at(202)4180660orviaEmailto"anapoli@fcc.gov".0   `  FEDERALCOMMUNICATIONSCOMMISSION (#(#      `  MagalieRomanSalas   `  Secretary  ! 7ClC&&dC&&d7f?&toshareCtoshare@-  APPENDICES  Ԉ #    APPENDIXALISTOFCOMMENTERS       Comments  G $ AmericanWaterwaysOperatorsAssociationofPublicSafetyCommunicationsOfficialsInternational,Inc.(APCO)MurrayCohenForestryConservationCommunicationsAssociation(FCCA)GlobeWirelessIndustrialTelecommunicationsAssociationandCouncilofIndependentCommunicationsSuppliers(ITA/CICS)WJGMariTELCorporation(MariTEL)MobileMarineRadio,Inc.(MMR)StateofMontanaNationalAssociationofBroadcastersandAssociationforMaximumServiceTelevision(NAB/MSTV)NationalMarineElectronicsAssociation(NMEA)FredDanield/b/aOrionTelecom(Orion)PagingSystems,Inc.(PSI)RossEngineeringCompany(Ross)RobertH.SassamanUnitedStatesCoastGuard(CoastGuard)UTC ReplyComments  vS BRCommunications(BRC)GlobeWirelessITA/CICSMariTELNAB/MSTVOrionRossCoastGuard     @8 8 APPENDIXBFINALREGULATORYFLEXIBILITYANALYSIS $Ԉ #   AsrequiredbytheRegulatoryFlexibilityAct(RFA),anInitialRegulatoryFlexibilityAnalysis(IRFA)wasincorporatedintotheSecondFurtherNoticeofProposedRuleMakinginthisproceeding(SecondFurtherNotice).The  _ CommissionsoughtwrittenpubliccommentontheproposalsintheSecondFurtherNotice,includingcommentontheIRFA. O , ThispresentFinalRegulatoryFlexibilityAnalysis(FRFA)conformstotheRFA.؀ A.  Needfor,andObjectivesof,theThirdReportandOrder      OurobjectiveistosimplifyourlicensingprocessforVHFpubliccoaststations.Specifically,thisactionwill:(1)convertlicensingofVHFpubliccoaststationspectrumfromsitebysitelicensingtogeographicarealicensing,(2)simplifyandstreamlinetheVHFpubliccoastspectrumlicensingproceduresandrules,(3)increaselicenseeflexibilitytoprovidecommunicationservicesthatareresponsivetodynamicmarketdemands,and(4)introducemarketbasedforcesintotheMaritimeServicesbyusingcompetitivebiddingprocedures(auctions)toresolvemutuallyexclusiveapplicationsforpubliccoastspectrum.Wefindthattheseactionswillincreasethenumberandtypesofcommunicationsservicesavailabletothemaritimecommunityandimprovethesafetyoflifeandpropertyatsea,andthatthepotentialbenefitstothemaritimecommunityexceedanynegativeeffectsthatmayresultfromthepromulgationofrulesforthispurpose.Thus,weconcludethatthepublicinterestisservedbyamendingourrulesasdescribedabove. B.  SummaryofSignificantIssuesRaisedbyPublicCommentsinResponsetotheIRFA     NocommentsweresubmittedinresponsetotheIRFA.IngeneralcommentsontheSecondFurtherNotice,however,  somesmallbusinesscommentersraisedissuesthatmightaffectsmallbusinessentities.Inparticular,somesmallbusinesscommentersarguedthatgeographiclicensingshouldbeusedonlyincertainareas;orthatincumbentlicenseesbepermittedtoexpandtheirsystemsbeforeanyauctionsareheld;orthatlicenseareasshouldbesmallenoughtopermitsmallerlicenseestoparticipateinauctions,sothatsmallbusinessdonothavetobidforterritoryfarexceedingtheiroperatingneeds.TheCommissioncarefullyconsideredeachofthesecommentsinreachingthedecisionsetforthherein. C.  DescriptionandEstimateoftheNumberofSmallEntitiestoWhichRulesWillApply     Therulesadoptedhereinwillapplytolicenseesusingpubliccoastspectrum.TheCommissionhasnotdevelopedadefinitionoftheterm"smallentity"specificallyapplicabletopubliccoaststationlicensees.Therefore,theapplicabledefinitionofsmallentityisthedefinitionundertheSmallBusinessAdministrationrulesapplicabletoradiotelephoneserviceproviders.Thisdefinitionprovidesthatasmallentityisanyentityemployinglessthan1,500persons.See13C.F.R.121.201,StandardIndustrialClassification(SIC)Code4812.Sincethesize #$ dataprovidedbytheSmallBusinessAdministrationdoesnotenableustomakeameaningfulestimateofthenumberofcurrentorprospectivepubliccoaststationlicenseeswhicharesmallbusinesses,andnocommentersrespondedtoourrequestforinformationregardingthenumberofsmallentitiesthatuseorarelikelytousepubliccoastspectrum,weusedthe1992CensusofTransportation,Communications,andUtilities,conductedbytheBureauofCensus,whichisthemostrecentinformationavailable.Thisdocumentshowsthatonly12radiotelephonefirmsoutofatotalof1,178suchfirmswhichoperatedduring1992had1,000ormoreemployees.Thereareover100publiccoaststationlicensees.Basedontheproposalscontainedherein,itisunlikelythatmorethan50licenseeswillbeauthorizedinthefuture.Therefore,forpurposesofourevaluationsandconclusionsinthisFRFA,weestimatethatthereareapproximately150publiccoaststationlicenseeswhicharesmallbusinesses,asthattermisdefinedbytheSmallBusinessAdministration. D.  DescriptionofProjectedReporting,Recordkeeping,andOtherComplianceRequirements  s-P&0  8.'1   Allsmallbusinessesthatchoosetoparticipateinthecompetitivebiddingfortheseserviceswillberequiredtodemonstratethattheymeetthecriteriasetforthtoqualifyassmallbusinesses,asrequiredunderPart1,SubpartQoftheCommission'sRules,47C.F.R.Part1,SubpartQ.Anysmallbusinessapplicantwishingtoavailitselfofsmallbusinessprovisionswillneedtomakethegeneralfinancialdisclosuresnecessarytoestablishthatthebusinessisinfactsmall.PriortoauctioneachsmallbusinessapplicantwillberequiredtosubmitanFCCForm175,OMBClearanceNumber30600600.TheestimatedtimeforfillingoutanFCCForm175is45minutes.InadditiontofilinganFCCForm175,eachapplicantwillhavetosubmitinformationregardingtheownershipoftheapplicant,anyjointventurearrangementsorbiddingconsortiathattheapplicanthasenteredinto,andfinancialinformationdemonstratingthatabusinesswishingtoqualifyforinstallmentpaymentsandbiddingcreditsisasmallbusiness.Applicantsthatdonothaveauditedfinancialstatementsavailablewillbepermittedtocertifytothevalidityoftheirfinancialshowings.Whilemanysmallbusinesseshavechosentoemployattorneyspriortofilinganapplicationtoparticipateinanauction,therulesareintendedtoenableasmallbusinessworkingwiththeinformationinabidderinformationpackagetofileanapplicationonitsown.Whenanapplicantwinsalicense,itwillberequiredtosubmitanFCCForm494(commoncarrier),whichwillrequiretechnicalinformationregardingtheapplicant'sproposalsforprovidingservice.Thisapplicationwillrequireinformationprovidedbyanengineerwhowillhaveknowledgeofthesystem'sdesign. E.  StepsTakentoMinimizeSignificantEconomicImpactonSmallEntities,andSignificantAlternatives   Considered  b   TheCommissioninthisproceedinghasconsideredcommentsonwaystoimplementbroadchangestotheMaritimeServicesrules.Indoingso,theCommissionhasadoptedalternativeswhichminimizeburdensplacedonsmallentities.First,ithasdecidedtoestablishapresumptionthatregionallicenseesaretelecommunicationscarriers,avoidingtheneedforsmalltelecommunicationstoprovidedetailedinformationabouttheiroperations.Also,ithasexemptedbyrulefromtheChannel16safetywatchrequirementpubliccoaststationswhoseareasareservedbygovernmentstations,replacingthepriorrequirementthatsuchcoaststationsindividuallyrequestanexemption.Inaddition,theCommissionhaseasedtheconstructionrequirementsforVHFpubliccoaststations.  TheCommissionconsideredandrejectedseveralsignificantalternatives.ItrejectedthealternativeoflicensingallVHFpubliccoastspectrumbyCoastGuardDistrict.Instead,itwilllicensesuchspectruminareasremovedfrommajorwaterwaysbyinlandVHFPublicCoastStationArea(VPCs),identicaltoEconomicAreas(EAs),allowingsmallentitiestheretoparticipateintheauctionwithoutbiddingforterritoryfarexceedingtheiroperatingneeds.TheCommissionrejectedthealternativeofdelayingtheauctionsfortheinlandVPCsbyholdingfrequenciesopenforpublicsafetyapplications.Instead,theCommissiondesignatedpublicsafetychannelsinadvance.TheCommissionrejectedthealternativeofrequiringeachgeographicarealicenseetoprovidedetailedinformationabouttheservicesitwilloffer,sotheCommissioncoulddeterminewhetherthelicenseeisatelecommunicationscarrier.Instead,theCommissionestablishedarebuttablepresumptionthatgeographicarealicenseesaretelecommunicationscarriers,soonlythoseseekingtoavoidthatclassificationneedsubmitsuchinformation.   TheCommissionwillsendacopyoftheThirdReportandOrder,includingthisFRFA,inareporttobesentto '( CongresspursuanttotheSmallBusinessRegulatoryEnforcementFairnessActof1996,see5U.S.C.801(a)(1)(A).In ' ) addition,theCommissionwillsendacopyoftheThirdReportandOrder,includingthisFRFA,totheChiefCounselfor (!* AdvocacyoftheSmallBusiness.AcopyoftheThirdReportandOrderandFRFA(orsummariesthereof)willalsobe )_"+ publishedintheFederalRegister.See5U.S.C.604(b).  O*,#,        APPENDIXCVHFCOASTSTATIONINFORMATION H #    Thetablebelowliststhepubliccorrespondencefrequencypairsassetforthin47C.F.R.80.371(c).*`gh dd dd dd pq(#(#`,( dd ,( td ,( td +  7i&   U7Channelnumber Eii6'  аi E  Carrierfrequency(MHz) J@-   U ii UJ &ii | Y &Shiptransmit 0ii! ii 0Coasttransmit Fi9!   U ii UF24 0ii!dA i 0157.200 0ii!dA ii 0161.800 Fi9!dA  U ii UF25 0ii! i 0157.250 0ii!ii 0161.850 Fi9! U ii UF26 0ii!$ i 0157.300 0ii!$ ii 0161.900 Fi9!$  U ii UF27 0ii!a i 0157.350 0ii!a ii 0161.950 Fi9!a  U ii UF28 0ii! i 0157.400 0ii! ii 0162.000 Fi9!  U ii UF84 0ii!D!i 0157.225 0ii!D!ii 0161.825 Fi9!D! U ii UF85 0ii!i 0157.275 0ii!ii 0161.875 Fi9! U ii UF86 0ii!i 0157.325 0ii! ii 0161.925 Fi9!! U ii UF87 0ii!dA"i 0157.375 0ii!dA#ii 0161.975 Jii9!dA$ U ii eJ88 2iii!%ii 2157.425 2iii!&iii 2162.0251'%'  e iii 1  '  @   APPENDIXD 񀄀 VHFPUBLICCOASTSTATIONAREA(VPC)INFORMATION bSԈ # 2toVPC1(NorthernAtlantic)consistsofEAs15,and10.  VPC2(MidAtlantic)consistsofEAs9,1123,25,42,and46. O , VPC3(SouthernAtlantic)consistsofEAs24,2634,37,38,40,41,and174.   VPC4(MississippiRiver)consistsofEAs35,36,39,4345,4753,67107,113,116120,122125,127,130134,and  ` 176.VPC5(GreatLakes)consistsofEAs68,5466,108,and109.   VPC6(SouthernPacific)consistsofEAs160165. a  VPC7(NorthernPacific)consistsofEAs147and166170.   VPC8(Hawaii)consistsofEA172,173,and175.   VPC9(Alaska)consistsofEA171. R/ VPC10(GrandForks)consistsofEA110.  VPC11(Minot)consistsofEA111. c VPC12(Bismarck)consistsofEA112.   VPC13(Aberdeen)consistsofEA114.  VPC14(RapidCity)consistsofEA115. T1 VPC15(NorthPlatte)consistsofEA121.  VPC16(WesternOklahoma)consistsofEA126. !e! VPC17(Abilene)consistsofEA128. "## VPC18(SanAngelo)consistsofEA129. $% VPC19(OdessaMidland)consistsofEA135. V&3' VPC20(Hobbs)consistsofEA136. ' ) VPC21(Lubbock)consistsofEA137. )g"+ VPC22(Amarillo)consistsofEA138. $+$- VPC23(SantaFe)consistsofEA139. ,%/ VPC24(Pueblo)consistsofEA140. X.5'1 ЇVPC25(DenverBoulderGreeley)consistsofEA141. # VPC26(Scottsbluff)consistsofEA142.  VPC27(Casper)consistsofEA143. W 4 VPC28(Billings)consistsofEA144.   VPC29(GreatFalls)consistsofEA145.  h VPC30(Missoula)consistsofEA146. %  VPC31(IdahoFalls)consistsofEA148.   VPC32(TwinFalls)consistsofEA149. Y6  VPC33(BoiseCity)consistsofEA150.   VPC34(Reno)consistsofEA151. j VPC35(SaltLakeCityOgden)consistsofEA152. ' VPC36(LasVegas)consistsofEA153.  VPC37(Flagstaff)consistsofEA154. [8 VPC38(Farmington)consistsofEA155.  VPC39(Albuquerque)consistsofEA156. l VPC40(ElPaso)consistsofEA157. ) VPC41(PhoenixMesa)consistsofEA158.    VPC42(Tucson)consistsofEA159.2COM  ]":" ` h` &&lCCOMMISSIO&l&` ` hCedalterna   #  &)consiC)consi@""   APPENDIXE 񀄀 PUBLICSAFETYSETASIDE `Ԉ # *qjk d d( dd ( td ( td gh(#(#q,<d ,<t +  1ll"  u1  InlandVPC 4lil!] :ll 4 ChannelsSetAsideforPublicSafety Hil9!] : u lil UH10 4iil! il 484,25 Hil9!  U iil UH11 4iil! il 484,25 Hil9!  U iil UH12 4iil!u R il 484,25 Hil9!u R  U iil UH13 4iil! il 484,25 Hil9!  U iil UH14 4iil!5 il 484,25 Hil9!5  U iil UH15 4iil!r il 484,25 Hil9!r  U iil UH16 4iil! il 425,85 Hil9!  U iil UH17 4iil!U2 il 425,85 Fill5!U2  U iil F18 4iill!ill 425,851'% 0  iill 1*`mn d d<d <t jk(#(#`,<d ,<t +  1ll"  u119 4lil!eBll 425,85 Hil9!eB u lil UH20 4iil!il 425,85 Hil9! U iil UH21 4iil!%il 425,85 Hil9!% U iil UH22 4iil!bil 425,85 Hil9!b U iil UH23 4iil!il 484,25 Hil9!  U iil UH24 4iil!E"!il 484,25 Hil9!E"" U iil UH25 4iil!#il 484,25 Hil9!$ U iil UH26 4iil!!%il 484,25 Hil9!!& U iil UH27 4iil!e"B'il 484,25 Fill5!e"B( U iil F28 4iill!#)ill 484,251'%#* 0  iill 1*`op d d<d <t mn(#(#`,<d ,<t +  1ll" $* u129 4lil!u%R+ll 484,25 Hil9!u%R, u lil UH30 4iil!&-il 484,25 Hil9!&. U iil UH31 4iil!5(!/il 425,85 Hil9!5(!0 U iil UH32 4iil!)r"1il 425,85 Hil9!)r"2 U iil UH33 4iil!*#3il 484,25 Hil9!*#4 U iil UH34 4iil!U,2%5il 484,25 Hil9!U,2%6 U iil UH35 4iil!-&7il 425,85 Hil9!-&8 U iil UH36 4iil!il 4 84,25 Hil9! U iil UH37 4iil! il 484,25 Fill5!  U iil F38 4iill!k Hill 484,251'%k H 0  iill 1*`qr d d<d <t op(#(#`,<d ,<t +  1ll" s P u139 4lil! ll 484,25 Hil9!  u lil UH40 4iil!{ X il 425,85 Hil9!{ X  U iil UH41 4iil! il 484,25 Fill5!  U iil F42 4iill!; ill 484,251'%;  0   iill 1  C   )    APPENDIXF 񀄀FINALRULES v #       ChapterIofTitle47oftheCodeofFederalRegulations,Parts20,80,and90areamendedasfollows:      I. ` Part20CommercialMobileRadioServices  O ,   1. ` TheauthoritycitationforPart20continuestoreadasfollows:     AUTHORITY:Secs.4,2512,303,and332,48Stat.1066,1062,asamended;47U.S.C.154,25154,303,and { X 332unlessotherwisenoted.  @    2. ` Section20.9isamendedbyrevisingparagraphs(b)and(b)(1)toreadasfollows:     20.9Commercialmobileradioservice.  lI    *****  (b) ` LicenseesofaPersonalCommunicationsServiceorapplicantsforaPersonalCommunications u  Servicelicense,andPublicCoastStationlicenseesorapplicants,proposingtouseanyPersonalCommunicationsServiceorPublicCoastStationspectrumtoofferserviceonaprivatemobileradioservicebasismustovercomethepresumptionthatPersonalCommunicationsServiceandPublicCoastStationsarecommercialmobileradioservices.  (1) ` Theapplicantorlicensee(whomustfileanapplicationtomodifyitsauthorization)seeking v authoritytodedicateaportionofthespectrumforprivatemobileradioservice,mustincludeacertificationthatitwillofferPersonalCommunicationsServiceorPublicCoastStationserviceonaprivatemobileradioservicebasis.Thecertificationmustincludeadescriptionoftheproposedservicesufficienttodemonstratethatitisnotwithinthedefinitionofcommercialmobileradioservicein20.3ofthischapter.AnyapplicationrequestingtouseanyPersonalCommunicationsServiceorPublicCoastStationspectrumtoofferserviceonaprivatemobileradioservicebasiswillbeplacedonpublicnoticebytheCommission.  *****     II. ` Part80StationsintheMaritimeServices   p      3. ` TheauthoritycitationforPart80isamendedtoreadasfollows: %"" s  AUTHORITY:Secs.4,303,307(e),309,and332,48Stat.1066,1082,asamended;47U.S.C.154,303, #$ 307(e),309,and332,unlessotherwisenoted.Interpretorapply48Stat.10641068,10811105,asamended;47U.S.C.151155,301609;3UST3450,3UST4726,12UST2377.  I%&&   4. ` Section80.3isamendedbyrevisingparagraph(b)toreadasfollows: &(   80.3Otherapplicablerulepartsofthischapter.  u(R!*     *****  (b)Part1.Thispartincludesrulesofpracticeandprocedureforlicenseapplications,adjudicatory +~$. proceedings,proceduresforreconsiderationandreviewofCommissionactions;provisionsconcerningviolationnoticesandforfeitureproceedings;andtheenvironmentalprocessingrequirementsthat,ifapplicable,mustbecompliedwithpriortotheinitiationofconstruction.SubpartQofPart1containsrulesgoverningcompetitive .&1 s/7ClC&&dC&&d7  s/7ClC&&dC&&d7  s/7ClC&&dC&&d7  s/7ClC&&dC&&d7  biddingproceduresforresolvingmutuallyexclusiveapplicationsforcertaininitiallicenses. #   *****  5. ` Section80.25isrevisedtoreadasfollows: W 4   80.25Licenseterm.      *****  (b) ` Licensesotherthanshipstationsinthemaritimeserviceswillnormallybeissuedforatermof   fiveyearsfromthedateoforiginalissuance,majormodification,orrenewal,exceptthatlicensesforVHFpubliccoaststationswillnormallybeissuedforatermoftenyearsfromthedateoforiginalissuance,majormodification,orrenewal.Licenses,otherthanPublicCoastandAlaskaPublicFixedstations,maybereneweduptoninety(90)daysafterthedatethelicenseexpires.  *****  6. ` Section80.49isrevisedtoreadasfollows: b   80.49Constructionandregionalservicerequirements.     (a)Publiccoaststations.    (1)EachVHFpubliccoaststationgeographicarealicenseemustmakeashowingofsubstantialservicewithinitsregionorservicearea(subpartP)withinfiveyearsoftheinitiallicensegrant,andagainwithintenyearsoftheinitiallicensegrant,ortheauthorizationbecomesinvalidandmustbereturnedtotheCommissionforcancellation."Substantial"serviceisdefinedasservicewhichissound,favorable,andsubstantiallyabovealevelofmediocreservicewhichjustmightminimallywarrantrenewal.ForsitebasedVHFpubliccoaststationlicensees,whenanewlicensehasbeenissuedoradditionaloperatingfrequencieshavebeenauthorized,ifthestationorfrequenciesauthorizedhavenotbeenplacedinoperationwithintwelvemonthsfromthedateofthegrant,theauthorizationbecomesinvalidandmustbereturnedtotheCommissionforcancellation.  (2)ForLF,MF,HF,andAMTSbandpubliccoaststationlicensees,whenanewlicensehasbeenissuedoradditionaloperatingfrequencieshavebeenauthorized,ifthestationorfrequenciesauthorizedhavenotbeenplacedinoperationwithineightmonthsfromthedateofthegrant,theauthorizationbecomesinvalidandmustbereturnedtotheCommissionforcancellation.  (b)Publicfixedstations.Whenanewlicensehasbeenissuedoradditionaloperatingfrequencieshave %^& beenauthorized,ifthestationorfrequenciesauthorizedhavenotbeenplacedinoperationwithintwelvemonthsfromthedateofthegrant,theauthorizationbecomesinvalidandmustbereturnedtotheCommissionforcancellation.  7. ` Anewsection80.60isaddedtoreadasfollows: )_"+       80.60Partitionedlicensesanddisaggregatedspectrum.  +#-   (a)Eligibility.VHFPublicCoastarea(VPC)licensees,see80.371(c)(1)(B)ofthispart,may ,%/ partitiontheirgeographicserviceareaordisaggregatetheirspectrumpursuanttotheproceduressetforthinthissection.Partiesseekingapprovalforpartitioninganddisaggregationshallrequestanauthorizationfor H.%'1 partialassignmentpursuantto1.924ofthischapter.  (b)Technicalstandards.(1)Partitioning.Inthecaseofpartitioning,allrequestsforauthorization  forpartialassignmentofalicensemustinclude,asanattachment,adescriptionofthepartitionedservicearea.Thepartitionedserviceareashallbedefinedbycoordinatepointsatevery3degreesalongthepartitionedserviceareaunlessanFCCrecognizedserviceareaisutilized(e.g.,MetropolitanServiceArea,RuralServiceArea,orEconomicArea)orcountylinesareused.Thegeographiccoordinatesmustbespecifiedindegrees,minutes,andsecondstothenearestsecondoflatitudeandlongitude,andmustbebaseduponthe1983NorthAmericanDatum(NAD83).InacasewhereanFCCrecognizedserviceareaorcountylinesareutilized,applicantsneedonlylistthespecificarea(s)(throughuseofFCCdesignationsorcountynames)thatconstitutethepartitionedarea.  (2)Disaggregation.Spectrummaybedisaggregatedinanyamount,providedacquiredspectrumis   disaggregatedaccordingtofrequencypairs.  (3)Combinedpartitioninganddisaggregation.TheCommissionwillconsiderrequestsforpartial &  assignmentoflicensesthatproposecombinationsofpartitioninganddisaggregation.  (c)Licenseterm.Thelicensetermforapartitionedlicenseareaandfordisaggregatedspectrumshallbe j theremainderoftheoriginallicensee'stermasprovidedforin80.25ofthispart.  (d)ConstructionRequirements.    (1)Partitioning.󀀀Partialassignorsandassigneesforlicensepartitioninghavetwooptionstomeet k constructionrequirements.Underthefirstoption,thepartitionorandpartitioneewouldeachcertifythattheywillindependentlysatisfythesubstantialservicerequirementfortheirrespectivepartitionedareas.Ifeitherlicenseefailedtomeetitssubstantialserviceshowingrequirement,onlythenonperforminglicensee'srenewalapplicationwouldbesubjecttodismissal.Underthesecondoption,thepartitionorcertifiesthatithasmetorwillmeetthesubstantialservicerequirementfortheentiremarket.Ifthepartitionorfailstomeetthesubstantialservicestandard,however,onlyitsrenewalapplicationwouldbesubjecttoforfeitureatrenewal.  (2)Disaggregation.Partialassignorsandassigneesforlicensedisaggregationhavetwooptionstomeet  constructionrequirements.Underthefirstoption,thedisaggregatoranddisaggregateewouldcertifythattheyeachwillshareresponsibilityformeetingthesubstantialservicerequirementforthegeographicservicearea.Ifpartieschoosethisoptionandeitherpartyfailstodoso,bothlicenseswouldbesubjecttoforfeitureatrenewal.Thesecondoptionwouldallowthepartiestoagreethateitherthedisaggregatororthedisaggregateewouldberesponsibleformeetingthesubstantialservicerequirementforthegeographicservicearea.Ifpartieschoosethisoption,andthepartyresponsibleformeetingtheconstructionrequirementfailstodoso,onlythelicenseofthenonperformingpartywouldbesubjecttoforfeitureatrenewal.  8. ` Section80.70isamendedbyaddingnewsubsection(c)asfollows: +' (   80.70SpecialprovisionsrelativetocoaststationVHFfacilities.  (!*   *****  (c)AVHF(156162MHz)publiccoaststationlicenseeinitiallyauthorizedonanyofthechannelslistedinthetablein80.371(c)(1)(A)ofthispartmaytransferorassignitschannel(s)toanotherentity.Iftheproposedtransfereeorassigneeisthegeographicarealicenseeforthegeographicareatowhichthechannelisallocated,suchtransferorassignmentwillbedeemedtobeinthepublicinterest.However,suchpresumptionwill X.5'1 berebuttable.  9. ` Section80.105isrevisedtoreadasfollows:    80.105Generalobligationsofcoaststations.  W 4   Eachcoaststationormarineutilitystationmustacknowledgeandreceiveallcallsdirectedtoitbyshiporaircraftstations.Suchstationsarepermittedtotransmitsafetycommunicationtoanyshiporaircraftstation.VHF(156162MHz)publiccoaststationsmayprovidefixedorhybridservicesonacoprimarybasiswithmobileoperations.  10. ` Section80.213isamendedbyrevisingparagraphs(a)(2)and(d)toreadasfollows:     80.213Modulationrequirements.  a    (a)*****  (2)Whenphaseorfrequencymodulationisusedinthe156162MHzbandthepeakmodulationmustbemaintainedbetween75and100percent.***  *****  (d)Shipandcoaststationtransmittersoperatinginthe156162MHzbandmustbecapableofproperoperationwithafrequencydeviationof5kHzwhenusinganyemissionauthorizedby80.207ofthispart.  11. ` Section80.303isamendedbyrevisingparagraph(b)toreadasfollows:    80.303Watchon156.800MHz(Channel16).     *****  (b)AcoaststationisexemptfromcompliancewiththewatchrequirementwhenFederal,State,orLocalGovernmentstationsmaintainawatchon156.800MHzover95%ofthecoaststation'sservicearea.EachlicenseeexemptedbyrulemustnotifythenearestdistrictofficeoftheU.S.CoastGuardatleastthirtydayspriortodiscontinuingthewatch,orinthecaseofnewstations,atleastthirtydayspriortocommencingservice.TheCoastGuardmayrequireanycoaststationtomaintainthewatchtemporarilyorpermanently.TheCoastGuardmayalsorequireanycoaststationtoremaincapableofeitherimmediatelyresumingthewatchorprovidingtheCoastGuarddirectdialupaccesstothenecessary156.800MHztransceiveratnochargesothattheCoastGuardcanmaintainthewatch.  *****  12. ` Section80.371isamendedbyrevisingparagraph(c)toreadasfollows: (!*   80.371Publiccorrespondencefrequencies.  G*$#,   *****  (c)WorkingfrequenciesinthemarineVHF156162MHzband.(1)(A)Thefrequencypairslistedinthe s-P&0 tablebelowareavailableforassignmenttopubliccoaststationsforpubliccorrespondencecommunicationswith @.'1 shipstationsandunitsonland.***  (B)ServiceareasinthemarineVHF156162MHzbandareVHFPublicCoastareas(VPCs).Aslistedinthetablebelow,VPCSAsarebasedon,andcomposedofoneormoreof,theU.SDepartmentofCommerce's172EconomicAreas(EAs).See60FR13114(March10,1995).Inaddition,theCommissionshalltreatGuamandtheNorthernMarianaIslands,PuertoRicoandtheUnitedStatesVirginIslands,AmericanSamoa,andtheGulfofMexicoasEAlikeareas,andhasassignedthemEAnumbers173176,respectively.MapsoftheEAsandVPCSAsareavailableforpublicinspectionandcopyingatthePublicSafetyandPrivateWirelessDivision,room8010,2025MStreet,NW,Washington,DC.Exceptasshownbelow,thefrequencypairslistedinparagraph(c)(1)(A)ofthissectionareavailableforassignmenttoasinglelicenseeineachoftheVPCslistedinthetablebelow.InadditiontothelistedEAslistedinthetablebelow,eachVPCalsoincludestheadjacentwatersunderthejurisdictionoftheUnitedStates.*`tu dd<d <t qr(#(#`,x +  1llll &  1@$VHFPublicCoastareas(VPCs)1'%  0  llll 1*Ovw ddx tu(#(#O,( d ,( td ,( t +  /lll   r/VPCs 2lil!~[lll 2EAs 4lill!~[lil 4FrequencyPairsNotAvailableforAssignment1'%K( 0 r lill 1*qxy dd( d ( td ( t vw(#(#q,( d ,( td ,( t +  1ll" S0 u11(NorthernAtlantic) 0li!ll 015,10 4lil!li 4Є Hil9! u lil UH2(MidAtlantic) 0ii![8il 09,1123,25,42,46 4iil![8ii 4Є Hil9![8 U iil UH3(SouthernAtlantic) 0ii!il 024,2634,37,38,40,41,174 4iil!ii 4Є Hil9! U iil H4(MississippiRiver) 0ii!il 034,36,39,4345,4753,67107,113,116120,122125,127,130134,176 4iil!!ii 4Є Hil9!"  iil UH5(GreatLakes) 0ii!#il 068,5466,108,109 4iil!$ii 4Є Hil9!% U iil UH6(SouthernPacific) 0ii!u R&il 0160165 4iil!u R'ii 4Є Hil9!u R( U iil UH7(NorthernPacific) 0ii!!)il 0147,166170 4iil!!*ii 4Є Hil9!!+ U iil UH8(Hawaii) 0ii!5#,il 0172,173,175 4iil!5#-ii 4Є Hil9!5#. U iil UH9(Alaska) 0ii!$r/il 0171 4iil!$r0ii 4Є Hil9!$r1 U iil UH10(GrandForks) 0ii!%2il 0110 4iil!%3ii 484,25 Hil9!%4 U iil UH11(Minot) 0ii!U'2 5il 0111 4iil!U'2 6ii 484,25 Hil9!U'2 7 U iil UH12(Bismarck) 0ii!(!8il 0112 4iil!(!9ii 484,25 Hil9!(!: U iil UH13(Aberdeen) 0ii!*";il 0114 4iil!*"<ii 484,25 Hil9!*"= U iil UH14(RapidCity) 0ii!u+R$>il 0115 4iil!u+R$?ii 484,25 Hil9!u+R$@ U iil UH15(NorthPlatte) 0ii!,%Ail 0121 4iil!,%Bii 484,25 Hil9!,%C U iil UH16(WesternOklahoma) 0ii!5.'Dil 0126 4iil!5.'Eii 425,85 Hil9!5.'F U iil UH17(Abilene) 0ii!il 0128 4iil!ii 425,85 Hil9! U iil UH18(SanAngelo) 0ii! il 0129 4iil! ii 425,85 Hil9!  U iil UH19(OdessaMidland) 0ii!k Hil 0135 4iil!k Hii 425,85 Hil9!k H  U iil UH20(Hobbs) 0ii!  il 0136 4iil!  ii 425,85 Hil9!   U iil UH21(Lubbock) 0ii!+  il 0137 4iil!+ ii 425,85 Hil9!+  U iil UH22(Amarillo) 0ii!hil 0138 4iil!hii 425,85 Hil9!h U iil UH23(SantaFe) 0ii!il 0139 4iil!ii 484,25 Hil9! U iil UH24(Pueblo) 0ii!K( il 0140 4iil!K( ii 484,25 Hil9!K(  U iil UH25(DenverBoulderGreeley) 0ii! il 0141 4iil! ii 484,25 Hil9!  U iil UH26(Scottsbluff) 0ii!  il 0142 4iil!  ii 484,25 Hil9!   U iil UH27(Casper) 0ii!kHil 0143 4iil!kH ii 484,25 Hil9!kH! U iil UH28(Billings) 0ii!"il 0144 4iil!#ii 484,25 Hil9!$ U iil UH29(GreatFalls) 0ii!+%il 0145 4iil!+&ii 484,25 Hil9!+' U iil UH30(Missoula) 0ii!h(il 0146 4iil!h)ii 484,25 Hil9!h* U iil UH31(IdahoFalls) 0ii!+il 0148 4iil!,ii 425,85 Hil9!- U iil UH32(TwinFalls) 0ii!K(.il 0149 4iil!K(/ii 425,85 Hil9!K(0 U iil UH33(BoiseCity) 0ii!1il 0150 4iil!2ii 484,25 Hil9!3 U iil UH34(Reno) 0ii! 4il 0151 4iil! 5ii 484,25 Hil9! 6 U iil UH35(SaltLakeCityOgden) 0ii!k H7il 0152 4iil!k H8ii 425,85 Hil9!k H9 U iil UH36(LasVegas) 0ii!!:il 0153 4iil!!;ii 484,25 Hil9!!< U iil UH37(Flagstaff) 0ii!+#=il 0154 4iil!+#>ii 484,25 Hil9!+#? U iil UH38(Farmington) 0ii!$h@il 0155 4iil!$hAii 484,25 Hil9!$hB U iil UH39(Albuquerque) 0ii!%Cil 0156 4iil!%Dii 484,25 Hil9!%E U iil UH40(ElPaso) 0ii!K'( Fil 0157 4iil!K'( Gii 425,85 Hil9!K'( H U iil UH41(PhoenixMesa) 0ii!(!Iil 0158 4iil!(!Jii 484,25 Fill5!(!K U iil F42(Tucson) 2iil! *"Lill 2159 4iill! *"Miil 484,251'% *"N 0  ) iill 1  (C)Subjecttoparagraph(c)(3)ofthissection,eachlicenseemayalsooperateon12.5kHzoffsetfrequenciesinareaswherethelicenseeisauthorizedonbothfrequenciesadjacenttotheoffsetfrequency,andinareaswherethelicenseeontheothersideoftheoffsetfrequencyconsentstothelicensee'suseoftheadjacentoffsetfrequency. G.$'R Ї  (2)AnyrecoveredchannelpairswillrevertautomaticallytotheholderoftheVPClicensewithinwhichsuchchannelsareincluded,exceptthechannelpairslistedinthetableinparagraph(c)(1)(B)ofthissection.Thosechannelpairs,andanychannelpairsrecoveredwherethereisnoVPClicensee,willberetainedbytheCommissionforfuturelicensing.  (3)VPClicenseesmaynotoperateonChannel228B(162.0125MHz),whichisavailableforuseintheCoastGuard'sPortsandWaterwaysSafetySystem(PAWSS)).Inaddition,withinsixmonthsoftheconclusionofthecompetitivebiddingprocedurestodeterminethelicenseesineachVPC,theU.S.CoastGuardshallsubmittoeachlicenseeofVPCs19aplanspecifyinguptotwonarrowbandchannelpairsoffset12.5kHzfromthechannelssetforthinthetableinparagraph(c)(1)(A)ofthissection,foruseinthePAWSS.ThefinalselectionofthePAWSSchannelpairscanbenegotiated(iftheVPClicenseeobjectstotheCoastGuardproposal,itshallmakeacounterproposalwithinthreemonths)andestablishedbyanagreementbetweentheparties.Allpartiesarerequiredtonegotiateingoodfaith.IfnoagreementisreachedwithinoneyearofthedatetheCoastGuardsubmitteditsplan,theCoastGuardmaypetitiontheCommissiontoselectthechannelpairs.  (4)Subjecttotherequirementsof80.21,eachVPClicenseemayplacestationsanywherewithinitsregionwithoutobtainingpriorCommissionapprovalprovided:  (A)Itprovidestocochannelcoaststationincumbentlicensees,andincumbentPrivateLandMobileRadiolicenseeauthorizedunderpart90ofthischapteronaprimarybasis,protectionasdefinedinsubpartPofthispart.VPClicenseesthatshareacommonbordermayeitherdistributetheavailablefrequenciesuponmutualagreementorrequestthattheCommissionassignfrequenciesalongthecommonborder.  (B)Thelocationsand/ortechnicalparametersofthetransmittersaresuchthatindividualcoordinationofthechannelassignment(s)withaforeignadministration,underapplicableinternationalagreementsandrulesinthispart,isnotrequired.  (C)Foranyconstructionoralterationthatwouldexceedtherequirementsof17.7ofthischapter,licenseesmustnotifytheappropriateRegionalOfficeoftheFederalAviationAdministration(FAAForm74601)andfilearequestforantennaheightclearanceandobstructionmarkingandlightingspecifications(FCCForm854)withtheFCC,Attn:InformationProcessingBranch,1270FairfieldRd.,Gettysburg,PA173257245.  (D)Thetransmittersmustnothaveasignificantenvironmentaleffectasdefinedby1.1301through1.1319ofthischapter.  *****  13. ` Section80.751isamendedtoreadasfollows: $%   80.751Scope.  ^&;'   Thissubpartspecifiesreceiverantennaterminalrequirementsintermsofpower,andrelatesthepoweravailableatthereceiverantennaterminalstotransmitterpowerandantennaheightandgain.ItalsosetsforththecochannelinterferenceprotectionthatVHFpubliccoaststationgeographicarealicenseesmustprovidetoincumbents.  14. ` Section80.773isamendedtoreadasfollows: +$.   80.773Cochannelinterferenceprotection.  -h&0  P.-'1   (a)WhereaVHFpubliccoaststationgeographicarealicenseesharesafrequencywithanincumbentVHFpubliccoaststationlicensee,theratioofdesiredtoundesiredsignalstrengthsmustbeatleast12dBwithintheserviceareaofthestation.  (b)WhereaVHFpubliccoaststationgeographicarealicenseesharesafrequencywithanincumbentprivatelandmobileradiolicensee,theVHFpubliccoaststationgeographicarealicenseemustprovideatleast10dBprotectiontothePLMRincumbent'spredicted38dBusignallevelcontour.ThePLMRincumbent'spredicted38dBusignallevelcontouriscalculatedusingtheF(50,50)fieldstrengthchartforChannels713in73.699(Fig.10)ofthischapter,witha9dBcorrectionfactorforantennaheightdifferential,andisbasedonthelicensee'sauthorizedeffectiveradiatedpowerandantennaheightaboveaverageterrain.The10dBprotectiontotheincumbent'spredicted38dBusignallevelcontourshallbecalculatedusingtheF(50,10)fieldstrengthchartforChannels713in73.699(Fig.10a)ofthischapter,witha9dBcorrectionfactorforantennaheightdifferential.  15. ` NewsubpartYisaddedtoreadasfollows: Y6   SubpartYCompetitiveBiddingProcedures     80.1251Maritimecommunicationsservicessubjecttocompetitivebidding. b 80.1252Designatedentities.  J'     80.1251Maritimecommunicationsservicessubjecttocompetitivebidding.     MutuallyexclusiveinitialapplicationsforVPClicenses,highseaspubliccoaststationlicenses,andAMTScoaststationlicensesaresubjecttocompetitivebiddingprocedures.Theproceduressetforthinpart1,subpartQofthischapterwillapplyunlessotherwiseprovidedinthispart.  80.1252Designatedentities.     (a)Thissectionaddressescertainissuesconcerningdesignatedentitiesinmaritimecommunicationsservicessubjecttocompetitivebidding.Issuesthatarenotaddressedinthissectionaregovernedbythedesignatedentityprovisionsinpart1,subpartQofthischapter.{[X` hp x (#%'0*,.8135@8:<H?AX(#%X{  (b)Eligibilityforsmallbusinessprovisions. h!E!   (1)Asmallbusinessisanentitythat,togetherwithitsaffiliatesandcontrollinginterests,hasaveragegrossrevenuesnottoexceed$15millionfortheprecedingthreeyears.  (2)Averysmallbusinessisanentitythat,togetherwithitsaffiliatesandcontrollinginterests,hasaveragegrossrevenuesnottoexceed$3millionfortheprecedingthreeyears.  (3)Forpurposesofdeterminingwhetheranentitymeetseitherofthedefinitionssetforthinparagraph(b)(1)or(b)(2)ofthissection,thegrossrevenuesoftheentity,itsaffiliates,andcontrollinginterests (z!* shallbeconsideredonacumulativebasisandaggregated. j)G"+   (4)Whereanapplicant(orlicensee)cannotidentifycontrollinginterestsunderthestandardssetforthinthissection,thegrossrevenuesofallinterestholdersintheapplicant,andtheiraffiliates,willbeattributable.  (5)Aconsortiumofsmallbusinesses(oraconsortiumofverysmallbusinesses)isaconglomerate 8.'1 organizationformedasajointventurebetweenoramongmutuallyindependentbusinessfirms,eachofwhichindividuallysatisfiesthedefinitioninparagraph(b)(1)ofthissection(oreachofwhichindividuallysatisfiesthedefinitioninparagraph(b)(2)ofthissection).Whereanapplicantorlicenseeisaconsortiumofsmallbusinesses(orverysmallbusinesses),thegrossrevenuesofeachsmallbusiness(orverysmallbusiness)shallnotbeaggregated.  (c)Controllinginterest.     (1)Forpurposesofthissection,controllinginterestincludesindividualsorentitieswithdejureand  h defactocontroloftheapplicant.Dejurecontrolisgreaterthan50percentofthevotingstockofacorporation, X5  orinthecaseofapartnership,thegeneralpartner.Defactocontrolisdeterminedonacasebycasebasis.An %  entitymustdiscloseitsequityinterestanddemonstrateatleastthefollowingindiciaofcontroltoestablishthatitretainsdefactocontroloftheapplicant:     (A)theentityconstitutesorappointsmorethan50percentoftheboardofdirectorsormanagementcommittee;  (B)theentityhasauthoritytoappoint,promote,demote,andfireseniorexecutivesthatcontrolthedaytodayactivitiesofthelicensee;and  (C)theentityplaysanintegralroleinmanagementdecisions.  (2)Calculationofcertaininterests.    (A)Ownershipinterestsshallbecalculatedonafullydilutedbasis;allagreementssuchaswarrants,stockoptionsandconvertibledebentureswillgenerallybetreatedasiftherightsthereunderalreadyhavebeenfullyexercised.  (B)Partnershipandotherownershipinterestsandanystockinterestequity,oroutstandingstock,oroutstandingvotingstockshallbeattributedasspecifiedbelow.  (C)Stockinterestsheldintrustshallbeattributedtoanypersonwhoholdsorsharesthepowertovotesuchstock,toanypersonwhohasthesolepowertosellsuchstock,and,toanypersonwhohastherighttorevokethetrustatwillortoreplacethetrusteeatwill.Ifthetrusteehasafamilial,personal,orextra-trustbusinessrelationshiptothegrantororthebeneficiary,thegrantororbeneficiary,asappropriate,willbeattributedwiththestockinterestsheldintrust.  (D)Non-votingstockshallbeattributedasaninterestintheissuingentity.  (E)Limitedpartnershipinterestsshallbeattributedtolimitedpartnersandshallbecalculatedaccordingtoboththepercentageofequitypaidinandthepercentageofdistributionofprofitsandlosses.  (F)Officersanddirectorsofanentityshallbeconsideredtohaveanattributableinterestintheentity.Theofficersanddirectorsofanentitythatcontrolsalicenseeorapplicantshallbeconsideredtohaveanattributableinterestinthelicenseeorapplicant.  (G)Ownershipintereststhatareheldindirectlybyanypartythroughoneormoreinterveningcorporationswillbedeterminedbysuccessivemultiplicationoftheownershippercentagesforeachlinkintheverticalownershipchainandapplicationoftherelevantattributionbenchmarktotheresultingproduct,exceptthatiftheownershippercentageforaninterestinanylinkinthechainexceeds50percentorrepresentsactual `.='1 control,itshallbetreatedasifitwerea100percentinterest.  (H)Anypersonwhomanagestheoperationsofanapplicantorlicenseepursuanttoamanagementagreementshallbeconsideredtohaveanattributableinterestinsuchapplicantorlicenseeifsuchperson,oritsaffiliatepursuantto1.2110(b)(4)ofthischapter,hasauthoritytomakedecisionsorotherwiseengageinpracticesoractivitiesthatdetermine,orsignificantlyinfluence  (i)Thenatureortypesofservicesofferedbysuchanapplicantorlicensee;  (ii)Thetermsuponwhichsuchservicesareoffered;or  (iii)Thepriceschargedforsuchservices.  (I)Anylicenseeoritsaffiliatewhoentersintoajointmarketingarrangementwithanapplicantorlicensee,oritsaffiliate,shallbeconsideredtohaveanattributableinterest,ifsuchapplicantorlicensee,oritsaffiliate,hasauthoritytomakedecisionsorotherwiseengageinpracticesoractivitiesthatdetermine,orsignificantlyinfluence,  (i)Thenatureortypesofservicesofferedbysuchanapplicantorlicensee;  (ii)Thetermsuponwhichsuchservicesareoffered;or  (iii)Thepriceschargedforsuchservices.    (d)Awinningbidderthatqualifiesasasmallbusinessoraconsortiumofsmallbusinessesasdefinedin80.1252(b)(1)or80.1252(b)(5)ofthissubpartmayusethebiddingcreditspecifiedin1.2110(e)(2)(ii)ofthischapter.Awinningbidderthatqualifiesasaverysmallbusinessoraconsortiumofverysmallbusinessesasdefinedin80.1252(b)(2)or80.1252(b)(5)ofthissubpartmayusethebiddingcreditspecifiedin1.2110(e)(2)(i)ofthischapter.  III. ` Part90 PrivateLandMobileRadioServices  )   16. ` TheauthoritycitationforPart90continuestoreadasfollows:      AUTHORITY:Secs.4,2512,303,309,and332,48Stat.1066,1082,asamended;47U.S.C.154,2512,303, U"2" 309and332,unlessotherwisenoted.  ##   17. ` Section90.283isremoved.#C&l&&&l#