Before the
               FEDERAL COMMUNICATIONS COMMISSION
                     Washington, D.C.  20554
In the Matter of                        )
                                   )
Petition for Reconsideration                 )         
of Schedule for Auction of 168               )
Licenses in the Local Multipoint             )
Distribution Service                         )


                              ORDER
     Adopted:  January 19, 1999                           Released:  January 20, 1999


By the Deputy Chief, Wireless Telecommunications Bureau:

     1.  On November 6, 1998, the Wireless Telecommunications Bureau ("Bureau")
announced that an auction for Local Multipoint Distribution Service ("LMDS") spectrum,
Auction Event No. 23, would begin on April 27, 1999.  On December 7, 1998, a Petition for
Reconsideration ("Petition") was filed by Sully Buttes Telephone Cooperative, Inc., Adams
Telcom, Inc., and New Wave Networks, LLC (collectively, "Joint Petitioners"), seeking to
postpone by at least 60 days the LMDS auction start date, and all associated deadlines.  For the
reasons discussed below, we deny the Petition.    
     
     2.  Joint Petitioners' primary concern is that the LMDS auction is scheduled to start soon
after the Broadband Personal Communications Services ("PCS") auction (Auction Event No. 22),
which is set to begin on March 23, 1999.  Specifically, Joint Petitioners claim that rural telephone
companies and small businesses will be harmed by the potential for overlapping auction schedules
because they do not have the resources to make business plans, analyze round results, and devise
bidding strategies for two auctions simultaneously.  They also claim that the overlapping
schedule runs contrary to the statutory requirement that the Commission facilitate participation of
small businesses in spectrum auctions.  We are not persuaded that the scheduling of the
Broadband PCS and LMDS auctions will cause undue hardship for smaller entities that intend to
participate in both auctions.  The auctions begin a full month apart, allowing Joint Petitioners
sufficient time to prepare for both.  We recognize that participating in two auctions
simultaneously can be administratively difficult, but not insurmountable.  If a substantial number
of bidders are participating in both auctions (assuming that the Broadband PCS auction does not
end prior to the start of the LMDS auction), we will factor their concerns into our round
scheduling decisions.

     3.  Joint Petitioners suggest that because business discussions concerning LMDS might
shed light on PCS spectrum bidding strategy, and vice versa, they must cease LMDS discussions
with investors as of the short-form application deadline for the LMDS auction pursuant to the
anti-collusion rule, 47 C.F.R.  1.2105(c).  They believe this will constrict their ability to engage
in strategic planning and negotiations for the LMDS auction  We believe that potential applicants
for each of these auctions have had ample time to engage in business discussions, in view of the
early announcement dates of these two auctions.  The Broadband PCS auction date was
announced on August 19, 1998, and the LMDS auction date was announced on November 6,
1998. 

     4.  Accordingly, Joint Petitioner's Petition for Reconsideration IS HEREBY DENIED. 
This action is taken under delegated authority pursuant to Section 0.331 of the Commission's
Rules.

     
                         FEDERAL COMMUNICATIONS COMMISSION


     
                         Kathleen Ham
                         Deputy Chief, Wireless Telecommunications Bureau