[Federal Register Volume 67, Number 123 (Wednesday, June 26, 2002)]
[Rules and Regulations]
[Pages 43031-43044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15779]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 25 and 101

[ET Docket No. 98-206; RM-9147; RM-9245; FCC 02-116]


Order To Permit Operation of NGSO FSS Systems Co-Frequency With 
GSO and Terrestrial Systems in the Ku-Band Frequency Range; Authorize 
Subsidiary Terrestrial Use of the 12.2-12.7 GHz Band by Direct 
Broadcast Satellite Licensees and Their Affiliates; and in Re 
Applications of Broadwave USA, PDC Broadband Corporation, and Satellite 
Receivers, Ltd. in the 2.2-12.7 GHz Band

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Commission addresses petitions for 
reconsideration and establishes technical, service and licensing rules 
for Multichannel Video Distribution and Data Service (MVDDS) in the 12 
GHz band. MVDDS will facilitate the delivery of new communications 
services, such as video and broadband

[[Page 43032]]

services, to a wide range of populations, including those that are 
unserved or underserved. These rules adopted will allow MVDDS licensees 
to share the 12 GHz band with new operators on a co-primary basis and 
on a co-primary, non-harmful interference basis with incumbent Direct 
Broadcast Satellite service providers.

DATES: Effective August 26, 2002, except for Secs. 25.139, 101.103, 
101.1403, 101.1413, 101.1417 and 101.1440 which contain information 
collection requirements that have not been approved by OMB. Written 
comments by the public on the new or modified information collections 
are due August 26, 2002. Written comments must be submitted by the OMB 
on the new or modified information collections on or before October 25, 
2002. The Federal Communications Commission will publish a document in 
the Federal Register announcing the effective date.

FOR FURTHER INFORMATION CONTACT: For MVDDS/Direct Broadcast Satellite 
(DBS) and MVDDS/non-geostationary satellite orbit (NGSO) fixed-
satellite services (FSS) sharing issues, contact the Office of 
Engineering and Technology `` Thomas Derenge at (202) 418-2451, Gary 
Thayer at (202) 418-2290 or Ira Keltz at (202) 418-0616. For MVDDS 
service rules, contact the Wireless Telecommunications Bureau `` 
Michael Pollak, Jennifer Burton, or Brian Wondrack at (202) 418-0680, 
TTY (202) 418-7233.

SUPPLEMENTARY INFORMATION: This is a summary of the Federal 
Communications Commission's Memorandum Opinion and Order and Second 
Report and Order, FCC 02-116, adopted on April 11, 2002, and released 
on May 23, 2002. The full text of this document is available for 
inspection and copying during normal business hours in the FCC 
Reference Center, Room CY-A257, 445 12th Street, SW., Washington, DC 
20554. The complete text may be purchased from the Commission's copy 
contractor, Qualex International, 445 12th Street, SW., Room CY-B402, 
Washington, DC 20554. The full text may also be downloaded at: 
www.fcc.gov. Alternative formats are available to persons with 
disabilities by contacting Brian Millin at (202) 418-7426 or TTY (202) 
418-7365.

Paperwork Reduction Analysis

    1. This Second Report and Order contains either a new or modified 
information collection. As part of the Commission's continuing effort 
to reduce paperwork burdens, we invite the general public and the 
Office of Management and Budget (OMB) to take this opportunity to 
comment on revision to the information collections contained in the 
Second Report and Order as required by the Paperwork Reduction Act of 
1995. Public and agency comments are due August 26, 2002. Comments 
should address:
     Whether the new or modified collection of information is 
necessary for the proper performance of the functions of the 
Commission, including whether the information shall have practical 
utility.
     The accuracy of the Commission's burden estimates.
     Ways to enhance the quality, utility, and clarity of the 
information collected.
     Ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology.
    Written comments by the public on the new or modified information 
collections are due August 26, 2002. Written comments must be submitted 
by the OMB on the new or modified information collections on or before 
October 25, 2002. In addition to filing comments with the Secretary, a 
copy of any comments on the information collections contained herein 
should be submitted to Judith B. Herman, Federal Communications 
Commission, Room 1-C804, 445 12th Street, SW., Washington, DC 20554, or 
via the Internet to [email protected], and to Jeanette Thornton, OMB Desk 
Officer, Room 10236 New Executive Office Building, 725 Seventeenth 
Street, NW., Washington, DC 20503, or via the Internet to 
[email protected].
    OMB Control No.: 3060-xxxx
    Title: 25.139 NGSO FSS coordination and information sharing between 
MVDDS licensees in the 12.2 GHz to 12.7 GHz band.
    Form No: N/A.
    Type of Review: New.
    Number of Respondents: 6.
    Frequency of Response: On occasion.
    Total Annual Burden: 6.
    Total Annual Cost: 0.
    Needs and Uses: This rule is needed for NGSO FSS licensees to 
maintain a subscriber database in a format that can be readily shared 
with MVDDS licensees for the purpose of determining compliance with the 
MVDDS transmitting antenna spacing requirement relating to qualifying 
existing NGSO FSS subscriber receivers set forth in Sec. 101.129 of 
this chapter.

    OMB Control No.: 3060-xxxx.
    Title: 101.103 Frequency coordination procedures.
    Form No: N/A.
    Type of Review: New collection.
    Frequency of Response: On occasion.
    Total Annual Burden: 177 hours.
    Total Annual Cost: 0.
    Needs and Uses: This rule is necessary to require MVDDS licensees 
to provide notice of intent of construct a proposed antenna to NGSO FSS 
licensees.

    OMB Control No.: 3060-xxxx.
    Title: 101.1403 Broadcast Carriage Requirements.
    Form No: N/A.
    Type of Review: New.
    Frequency of Response: On occasion.
    Number of Respondents: 354.
    Total Annual Burden: 354.
    Total Annual Cost: 0.
    Needs and Uses: This rule is needed for the purpose of coming into 
compliance with the broadcast carriage requirements.

    OMB Control No.: 3060-xxxx.
    Title: 101.1413 License term and renewal expectancy.
    Form No: N/A.
    Type of Review: New collection.
    Frequency of Response: On occasion.
    Total Annual Burden: 7080 hours.
    Total Annual Cost: 0.
    Needs and Uses: The information required in Sec. 101.1413 is used 
to determine whether a renewal applicant of a MVDDS has complied with 
the requirements to provide substantial service by the end of the ten-
year initial license term. The FCC uses the information to determine 
whether an applicant's license will be renewed at the end of the 
license period.

    OMB Control No.: 3060-xxxx.
    Title: 101.1417 Annual Report.
    Form No: N/A.
    Type of Review: New.
    Frequency of Response: Annually.
    Total Annual Burden: 354.
    Total Annual Cost: 0.
    Needs and Uses: This rule requires MVDDS licensees to file two 
copies of a report by March 1 of each year for the preceding calendar 
year. This report must include name and address of licensee; station(s) 
call letters and primary geographic service area(s); and statistical 
information for the licensee's station.

    OMB Control No.: 3060-xxxx.
    Title: 101.1440 MVDDS protection of DBS.
    Form No: N/A.
    Type of Review: New.
    Frequency of Response: On occasion.
    Total Annual Burden: 14,522.
    Total Annual Cost: 0.
    Needs and Uses: This rule requires MVDDS licensees conduct a survey 
to determine the location of all DBS customers of record and obtain a 
signed written agreement from the DBS

[[Page 43033]]

customers of record agreeing to their DBS system receiving MVDSS signal 
in excess of appropriate EFPD.
    1. In this Memorandum Opinion and Order and Second Report and 
Order, we make the following major determinations regarding the 
licensing of MVDDS in the 12 GHz band:

MO&O

     We find that the Commission provided clear notice that the 
Commission was considering authorizing MVDDS in the 12 GHz band in the 
November 24, 1998 Notice of Proposed Rulemaking, 64 FR 7565 (January 
12, 1999) (Amendment of Parts 2 and 25 of the Commission's Rules to 
Permit Operation of NGSO FSS Systems Co-Frequency with GSO and 
Terrestrial Systems in the Ku-Band Frequency Range; Amendment of the 
Commission's Rules to authorize subsidiary Terrestrial Use of the12.2-
12.7 GHz Band by Direct Broadcast Satellite Licensees and Their 
Affiliates, ET Docket No. 98-206, ET Docket No. 98-206, 14 FCC Rcd 1131 
(1998)), as required by the Administrative Procedure Act (5 U.S.C. 
Chapter 5, et. seq.).
     The MVDDS authorization complies with the provisions, and 
fosters the goals, of the Satellite Home Viewer Improvement Act of 1999 
(SHVIA) and the Rural Local Broadcast Signal Act (RLBSA) (Public Law 
106-113 Stat. 1501 (enacting S. 1948, including the SHVIA and the 
RLBSA, Titles I and II of the Intellectual Property and Communications 
Omnibus Reform Act of 1999)).
     The technical rules and regulatory safeguards we are 
adopting in the Second Report and Order will protect the primary 
allocation status of incumbent DBS/Broadcast Satellite Service (BSS) 
and the co-primary NGSO FSS operators in the 12 GHz band.
     The Commission's decision to authorize MVDDS in the 12 GHz 
band was carefully considered and rationally explained based upon all 
of the available information in the record.
     The technical rules we are establishing for MVDDS 
operation are technologically neutral because they do not specify a 
particular equipment configuration or methodology, proprietary or not, 
that must be used within the fixed terrestrial MVDDS service.
     The Commission's decision to authorize MVDDS in the 12 GHz 
band does not violate International Telecommunication Union (ITU) 
recommendations and constitutes an appropriate exercise of domestic 
regulatory authority.
     We deny the petitions for reconsideration with respect to 
the Commission's decision to authorize MVDDS in the 12 GHz band.
     We find to be substantively without merit, and dismiss on 
our own motion as procedurally untimely, a ``Petition for Consolidation 
of Rulemaking Proceedings and for a Declaration that Alternative 
Spectrum is Suitable for the Proposed Multichannel Video Distribution 
and Data Service,'' which seeks to disallow MVDDS operation in the 
12.2-12.7 GHz band and instead seeks consideration of alternative 
spectrum in the 12.7-13.25 GHz Cable Television Relay Service (CARS) 
band or the 2500-2690 MHz Multichannel Multipoint Distribution Service 
(MMDS) in the context of two other rule making proceedings.

R&O

     We will require an MVDDS operator to operate with a 
maximum power limit of 14 dBm per 24 megahertz Effective Isotropic 
Radiated Power (EIRP).
     We specify an equivalent power flux density (EPFD) limit 
for each of four regions across the United States. The regions and 
corresponding EPFD limits are: East: -168.4 dBW/m2/4kHz, 
Midwest: -169.8 dBW/m2/4kHz, Southwest: -171.0 dBW/
m2/4kHz, and Northwest: -172.1 dBW/m2/4kHz.
     Using a prescribed methodology and a predictive model to 
calculate EPFD values, we used a criterion that would limit the amount 
of increased BSS unavailability due to the presence of MVDDS to ten 
percent over a baseline level of BSS unavailability. The unavailability 
allowance ascribed to MVDDS is in addition to the unavailability 
allowance ascribed to NGSO FSS operations in the 12.2-12.7 GHz band.
     MVDDS must site and design its transmitting antennas to 
avoid causing harmful interference to existing DBS customers.
     We will require the MVDDS operator to ensure that the 
prescribed EPFD limits are not exceeded at any DBS customer of record 
location. If the EPFD limits are exceeded, the MVDDS operator will be 
required to discontinue service until such time that the limits can be 
met.
     To promote MVDDS and NGSO FSS band sharing, MVDDS signals 
shall not exceed a power flux density (PFD) of -135dBW/m2/
4kHz measured and/or calculated at the surface of the earth at 
distances greater than 3 km from the MVDDS transmitting site.
     We adopt a minimum MVDDS transmitting antenna spacing of 
10 km from pre-existing NGSO FSS receive antennas with the option for 
NGSO FSS licensee agreement to accept shorter spacing. We also conclude 
that NGSO FSS receivers must accept any interference from pre-existing 
MVDDS transmitting antennas.
     We adopt basic information sharing and coordination 
requirements that MVDDS and NGSO FSS operators must follow to 
facilitate mutual sharing of the 12 GHz band as co-primary services.
     We adopt MVDDS emission mask values for protecting NGSO 
FSS operations in the adjacent 11.7-12.2 GHz band and CARS and 
Broadcast Auxiliary Service (BAS) operations in the adjacent 12.7-13.25 
GHz band from out-of-band MVDDS emissions.
     We adopt low elevation angle PFD radiation limits on NGSO 
FSS operations that will afford protection to MVDDS receivers from NGSO 
FSS interference for the portion of the non-geostationary orbital path 
near the horizon.
     We dismiss, without prejudice, all applications for 
terrestrial use of the 12 GHz band. All interested parties may reapply 
under the new licensing rules established in this proceeding.
     We adopt a geographic area licensing scheme that permits 
the filing of mutually exclusive applications. Consistent with our 
statutory mandate to resolve such applications through the use of 
auctions, any mutually exclusive initial applications for the MVDDS 
service will be resolved by competitive bidding.
     We find that the ORBIT Act does not bar the assignment of 
licenses for MVDDS in the 12.2-12.7 GHz band by competitive bidding.
     We adopt our proposal to auction MVDDS licenses in 
conformity with the general competitive bidding rules set forth in Part 
1, Subpart Q, of the Commission's Rules.
     We adopt three small business definitions and three levels 
of bidding credits for MVDDS. We define a very small business as an 
entity with average annual gross revenues not exceeding $3 million for 
the preceding three years; a small business as an entity with average 
annual gross revenues not exceeding $15 million for the preceding three 
years; and an entrepreneur as an entity with average annual gross 
revenues not exceeding $40 million for the preceding three years. Very 
small businesses will receive a bidding credit of 35 percent, small 
businesses will receive a bidding credit of 25 percent, and 
entrepreneurs will receive a bidding credit of 15 percent.
     We decline to adopt a set-aside of MVDDS spectrum or 
special bidding credits for DBS licensees.

[[Page 43034]]

     We decline to adopt a prohibition against transfers of 
MVDDS licenses.
     We adopt geographic license service areas for MVDDS on the 
basis of Component Economic Areas (CEAs).
     We adopt a channel plan consisting of one spectrum block 
of 500 megahertz per service area.
     We permit fixed one-way operations, but exclude mobile and 
aeronautical operations. Permissible operations include the flexibility 
for two-way services whereby the 12 GHz band could be used for the 
downstream path, and any upstream (or return) path could be located in 
other spectrum or over a wireline.
     We decline to adopt must-carry rules.
     We require incumbent non-public safety Private Operational 
Fixed Service (POFS) licensees in the 12 GHz band to protect MVDDS and 
NGSO FSS operations.
     We require MVDDS and NGSO FSS operations to protect 
incumbent traditional public safety POFS licensees in the 12 GHz band.
     We suspend the acceptance of POFS applications for new 
licenses, amendments to applications for new and modified licenses and 
major modifications to existing licenses.
     We decline to permit dominant cable operators from 
acquiring an attributable interest in an MVDDS license for a service 
area where significant overlap is present.
     We adopt a ten-year license term for MVDDS, beginning on 
the date of the initial authorization grant, and adopt a renewal 
expectancy based on the substantial service requirement.
     We restrict the placement of transmitting systems near the 
Canadian and Mexican borders.

I. Final Regulatory Flexibility Certification (Second Report and Order)

    2. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the Amendment of Parts 2 and 25 of the Commission's 
Rules to Permit Operation of NGSO FSS Systems Co-Frequency with GSO and 
Terrestrial Systems in the Ku-Band Frequency Range; Amendment of the 
Commission's Rules to Authorize Subsidiary Terrestrial Use of the 12.2-
12.7 GHz Band by Direct Broadcast Satellite Licensees and Their 
Affiliates; and Applications of Broadwave USA, PDC Broadband 
Corporation, and Satellite Receivers, Ltd. to Provide A Fixed Service 
in the 12.2-12.7 GHz Band, First Report and Order and Further Notice of 
Proposed Rule Making, 66 FR 30361 (June 6, 2001) (First Report and 
Order and Further Notice of Proposed Rule Making), FCC 00-418, ET 
Docket No. 98-206, 16 FCC Rcd 4096 (2000). The Commission sought 
written public comment on the proposals in the Further Notice of 
Proposed Rule Making including comment on the IRFA. This Final 
Regulatory Flexibility Analysis (FRFA) examines the possible 
significant economic impact of our actions on small entities and 
conforms to the RFA.

A. Need for, and Objectives of, the Second Report and Order

    3. By this action, Multichannel Video Distribution and Data Service 
(MVDDS) providers will share the 12.2-12.7 GHz band with new NGSO FSS 
operators on a co-primary basis and on a non-harmful interference basis 
with incumbent direct broadcast satellite (DBS) providers. The 
objective of this Second Report and Order is to adopt licensing, 
service and technical rules for the MVDDS. Specifically, we seek: (1) 
to accommodate the introduction of innovative services; and (2) to 
facilitate the sharing and efficient use of spectrum. Furthermore, the 
rules adopted in this Second Report and Order are designed to implement 
Congress's goal of giving small businesses the opportunity to 
participate in the provision of spectrum-based services in accordance 
with section 309(j) of the Communications Act of 1934, as amended. 
Thus, we believe that this service will facilitate the delivery of 
communications services, such as video and broadband services, to 
various populations including those that are deemed to be unserved and/
or underserved.

B. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA

    4. Although we did not receive any comments in direct response to 
the IRFA, commenters suggested approaches that would foster 
participation in the MVDDS service by smaller entities. For instance, 
several commenters favored allowing MVDDS licensees to partition their 
geographic service areas into smaller areas. In addition, the Rural 
Telecommunications Group (RTG) suggested the use of smaller service 
areas--Metropolitan Statistical Areas (MSAs), Rural Service Areas 
(RSAs) or Component Economic Areas (CEAs)--to facilitate opportunities 
for small and rural carriers to obtain MVDDS licenses and to ensure 
that rural regions benefit from the 12.2-12.7 GHz band. Likewise, 
Pegasus supported licensing MVDDS on the basis of basic trading areas 
(BTAs) and major trading areas (MTAs) because the population served 
would be smaller and the cost of licenses likely lower, thus providing 
greater economic opportunity for a wider variety of applicants. Thus, 
the need to establish opportunities for smaller entities to have access 
to MVDDS spectrum was a sentiment expressed by various commenters in 
the MVDDS rule making proceeding.

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

    5. The RFA directs agencies to provide a description of, and, where 
feasible an estimate of, the number of small entities that may be 
affected by the rules adopted herein. The RFA generally defines the 
term ``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A small business concern is one which: (1) is independently owned 
and operated; (2) is not dominant in its field of operation; and (3) 
satisfies any additional criteria established by the Small Business 
Administration (SBA).
    6. Small Multichannel Video Programming Distributors (MVPDs). SBA 
has developed a definition of small entities for cable, which includes 
all such companies generating $11 million or less in annual receipts. 
This definition includes cable system operators and DBS services. 
According to the Census Bureau data from 1992, there were 1,758 total 
cable and other pay television services and 1,423 had less than $11 
million in revenue. We address each service individually to provide a 
more precise estimate of small entities.
    7. Cable Services. The Commission has developed, with SBA's 
approval, our own definition of a small cable system operator for the 
purposes of rate regulation. Under the Commission's rules, a ``small 
cable company'' is one serving 400,000 or fewer subscribers nationwide. 
We last estimated that there were 1439 cable operators that qualified 
as small cable companies. Since then, some of those companies may have 
grown to serve over 400,000 subscribers, and others may have been 
involved in transactions that caused them to be combined with other 
cable operators. Consequently, using this definition, we estimate that 
there are fewer than 1439 small entity cable system operators that may 
be affected by the decisions and

[[Page 43035]]

rules adopted in this Second Report and Order.
    8. The Communications Act defines a small cable system operator as 
``a cable operator that, directly or through an affiliate, serves in 
the aggregate fewer than one percent of all subscribers in the United 
States and is not affiliated with any entity or entities whose gross 
annual revenues in the aggregate exceed $250,000,000.'' The Commission 
has determined that there are 61,700,000 subscribers in the United 
States. Therefore, an operator serving fewer than 617,000 subscribers 
shall be deemed a small operator under the Communications Act 
definition, if its annual revenues, when combined with the total annual 
revenues of all of its affiliates, do not exceed $250 million in the 
aggregate. Based on available data, we find that the number of cable 
operators serving 617,000 subscribers or less totals approximately 
1450. Although it seems certain that some of these cable system 
operators are affiliated with entities whose gross annual revenues 
exceed $250,000,000, we are unable at this time to estimate with 
greater precision the number of cable system operators that would 
qualify as small cable operators under the definition in the 
Communications Act.
    9. DBS Service. Because DBS provides subscription services, DBS 
falls within the SBA definition of Cable Networks (NAIC 513210) and 
Cable and Other Program Distribution (NAIC 513220). This definition 
provides that a small entity is expressed as one with $11 million or 
less in annual receipts. The operational licensees of DBS services in 
the United States are governed by Part 100 of the Commission's Rules. 
The Commission, however, does not collect annual revenue data for DBS 
and, therefore, is unable to ascertain the number of small DBS 
licensees meeting this definition that could be impacted by these 
rules. DBS service requires a great investment of capital for 
operation, and we acknowledge that there are entrants in this field 
that may not yet have generated $11 million in annual receipts, and 
therefore may be categorized as a small business by the SBA, if 
independently owned and operated.
    10. Auxiliary, Special Broadcast and other program distribution 
services. This service involves a variety of transmitters, generally 
used to relay broadcast programming to the public (through translator 
and booster stations) or within the program distribution chain (from a 
remote news gathering unit back to the station). The Commission has not 
developed a definition of small entities applicable to broadcast 
auxiliary licensees. Therefore, the applicable definition of small 
entity is the definition under the SBA rules applicable to radio 
networks (NAICS 513111), radio stations (NAICS 513112), and television 
broadcasting (NAICS 513120). These definitions provide, respectively, 
that a small entity is one with either $5 million or less in annual 
receipts or $10.5 million in annual receipts. The numbers of these 
stations are very small. The Commission does not collect financial 
information on these auxiliary broadcast facilities. We believe, 
however, that most, if not all, of these auxiliary facilities could be 
classified as small businesses by themselves. We also recognize that 
most of these types of services are owned by a parent station which, in 
some cases, would be covered by the revenue definition of small 
business entity. These stations would likely have annual revenues that 
exceed the SBA maximum to be designated as a small business (as noted, 
either $5 million for a radio station or $10.5 million for a TV 
station). Furthermore, they do not meet the SBA's definition of a 
``small business concern'' because they are not independently owned and 
operated.
    11. Private Operational Fixed Service. Incumbent microwave services 
in the 12.2-12.7 GHz bands are private operational fixed (POF) 
services. Presently, there are approximately 22,015 common carrier 
licensees, and approximately 61,670 POF licensees and broadcast 
auxiliary radio licensees in the microwave service. Inasmuch as the 
Commission has not yet defined a small business with respect to these 
incumbent microwave services, we will utilize the SBA's definition 
applicable to cellular and other wireless telecommunications companies 
(NAICS 513322); i.e., an entity with no more than 1500 persons. We 
estimate, for this purpose, that all of the Fixed Microwave licensees 
(excluding broadcast auxiliary licensees) would qualify as small 
entities under the SBA definition for radiotelephone companies.
    12. The rules set forth in this Second Report and Order will affect 
all entities that intend to provide terrestrial MVDDS operations in the 
12.2-12.7 GHz band. In this Second Report and Order, we state that 
licensees are permitted to use MVDDS spectrum for, among other things, 
fixed one-way direct-to-home/business video and data services.
    13. Additionally, in the Second Report and Order, we adopt 
definitions for three tiers of small businesses for the purpose of 
providing bidding credits to small entities. Specifically, we define 
the three tiers of small businesses as follows: an ``entrepreneur'' is 
an entity with average annual gross revenues not exceeding $40 million 
for the preceding three years; a ``small business'' is an entity with 
average annual gross revenues not exceeding $15 million for the 
preceding three years; and a ``very small business'' is an entity with 
average annual gross revenues not exceeding $3 million for the 
preceding three years. We will not know how many auction participants 
or licensees will qualify under these definitions as entrepreneurs, 
small businesses, or very small businesses until an auction is held. 
However upon reviewing the record in the MVDDS proceeding, we assume 
that, for purposes of our evaluations and conclusions in the FRFA, a 
number of the prospective licensees will be entrepreneurs, small 
businesses, or very small businesses under our adopted definitions.

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

    14. Applicants for MVDDS licenses are required to submit an FCC 
Form 175 short-form application prior to the auction, and auction 
winners will be required to file an FCC Form 601 license application. 
Additionally, we will apply the Part 101 rules governing reporting 
requirements to MVDDS systems. Specifically, each MVDDS licensee is 
required to file with the Commission two copies of a report no later 
than March 1 of each year for the preceding calendar year, which must 
include the following: (a) name and address of licensee; (b) station(s) 
call letters and primary geographic service area(s); and (c) the 
following statistical information for the licensee's station (and each 
channel thereof): (i) the total number of separate subscribers served 
during the calendar year; (ii) the total hours of transmission service 
rendered during the calendar year to all subscribers; (iii) the total 
hours of transmission service rendered during the calendar year 
involving the transmission of local broadcast signals; and (iv) a list 
of each period of time during the calendar year in which the station 
rendered no service as authorized, if the time period was a consecutive 
period longer than forty-eight hours. In addition, we require each 
MVDDS licensee to file actual data on cases of harmful interference to 
DBS operations and measures taken to alleviate such interference. We 
believe that the information compiled in this report will assist us in 
analyzing trends and competition in the marketplace.

[[Page 43036]]

E. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    15. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its approach, which may 
include the following four alternatives: (1) The establishment of 
differing compliance or reporting requirements or timetables that take 
into account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance or 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.
    16. We have taken significant steps to reduce burdens on small 
entities wherever possible. To provide opportunities for small entities 
to participate in any auction that is held, we provide bidding credits 
for entrepreneurs, small businesses, and very small businesses as 
defined in section C of this FRFA. The bidding credits adopted are 15 
percent for entrepreneurs, 25 percent for small businesses, and 35 
percent for very small businesses. Our decision to adopt CEAs as 
service areas for MVDDS and to permit the partitioning of these service 
areas is also intended to provide small entities an opportunity to 
acquire licenses. There are currently 348 CEAs and we believe that the 
use of these service areas will encourage smaller business entities to 
participate in the MVDDS auction. Participation in the MVDDS auction by 
smaller business entities would foster the buildout of services to 
local and/or rural areas which are traditionally deemed underserved or 
unserved. The regulatory burdens we have retained are necessary in 
order to ensure that the public receives the benefits of innovative new 
services in a prompt and efficient manner. We will continue to examine 
alternatives in the future with the objectives of eliminating 
unnecessary regulations and minimizing any significant economic impact 
on small entities.

F. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Final Rules

    17. None.
    18. Report to Congress. The Commission will send a copy of the 
Second Report and Order, including this FRFA, in a report to be sent to 
Congress pursuant to the Congressional Review Act. In addition, the 
Commission will send a copy of the Second Report and Order, including 
this FRFA, to the Chief Counsel for Advocacy of the Small Business 
Administration. A copy of the Second Report and Order and FRFA (or 
summaries thereof) will also be published in the Federal Register.

II. Ordering Clauses

    19. Authority. Accordingly, it is ordered that pursuant to the 
authority contained in sections 4(i), 7(a), 301, 303(c), 303(f), 
303(g), 303(r), 308, and 309(j) of the Communications Act of 1934, as 
amended, 47 U.S.C. 154(i), 157(a), 301, 303(c), 303(f), 303(g), 303(r), 
308, 309(j), this Memorandum Opinion and Order and Second Report and 
Order is adopted.
    20. It is further ordered that, parts 25 and 101 of the 
Commission's rules ARE AMENDED as specified in rule changes, effective 
August 26, 2002, except for Secs. 25.139, 101.103, 101.1403, 101.1413, 
101.1417 and 101.1440 which contain information collection requirements 
that have not been approved by OMB. The Federal Communications 
Commission will publish a document in the Federal Register announcing 
the effective date. This action is taken pursuant to sections 4(i), 
303(c), 303(f), 303(g), 303(r), and 309(j) of the Communications Act of 
1934, as amended, 47 U.S.C. 154(i), 303(c), 303(f), 303(g), 303(r) and 
309(j).
    21. It is further ordered that pursuant to sections 4(i), 302, 
303(e), 303(f), 303(g), 303(r) and 405 of the Communications Act of 
1934, as amended, the petitions for reconsideration filed by SkyBridge, 
DirecTV, Inc., EchoStar Satellite Corporation, Satellite Broadcasting 
and Communications Association, the Boeing Company, and SkyTower, Inc. 
as they relate to our decision to allocate MVDDS in the 12 GHz band are 
denied.
    22. It is further ordered that pursuant to sections 4(i), 302, 
303(e), 303(f), 303(g), 303(r) and 405 of the Communications Act of 
1934, as amended, the DBS Petition for Consolidation and Declaration 
filed by DirecTV and EchoStar is dismissed.
    23. It is further ordered that pursuant to sections 4(i), 303(r) 
and 309(j) of the Communications Act of 1934, as amended, 47 U.S.C. 
154(i), 303(r), 309(j), and section 1.934(d) of the Commission's Rules, 
47 CFR 1.934(d), the Broadwave Network, LLC Applications for Licenses 
to Provide a New Terrestrial Transport Service in the 12 GHz band, 
Various DMAs, filed on January 8, 1999, are dismissed.
    24. It is further ordered that pursuant to sections 4(i), 303(r) 
and 309(j) of the Communications Act of 1934, as amended, 47 U.S.C. 
154(i), 303(r), 309(j), and section 1.934(d) of the Commission's Rules, 
47 CFR 1.934(d), the PDC Broadband Corporation Applications for 
Licenses to Provide Terrestrial Service in the 12 GHz Band in All DMAs, 
filed on April 18, 2000, are dismissed.
    25. It is further ordered that pursuant to sections 4(i), 303(r) 
and 309(j) of the Communications Act of 1934, as amended, 47 U.S.C. 
154(i), 303(r), 309(j), and section 1.934(d) of the Commission's Rules, 
47 CFR 1.934(d), the Satellite Receivers, Ltd. Applications for 
Licenses to Provide Terrestrial Television Broadcast and Data Services 
in the 12.2-12.7 GHz Band in Illinois, Indiana, Iowa, Michigan, 
Minnesota and Wisconsin, filed on August 25, 2000, are dismissed.
    26. It is further ordered that, effective as of the date of the 
release of this Memorandum Opinion and Order and Second Report and 
Order, NO NEW APPLICATIONS WILL BE ACCEPTED FOR FILING in the 12.2-12.7 
GHz band for private operational fixed service, except for applications 
for minor modifications or for license assignment or transfer of 
control.
    27. It is further ordered that pending applications, as of the 
release date of this Memorandum Opinion and Order and Second Report and 
Order, for Private Operational Fixed Service licenses in the 12.2-12.7 
GHz band will be processed on a first-come, first-served basis.
    28. It is further ordered that the Commission's Consumer 
Information Bureau, Reference Information Center, shall send a copy of 
this Memorandum Opinion and Order and Second Report and Order, 
including the Final Regulatory Flexibility Analysis, to the Chief 
Counsel for Advocacy of the Small Business Administration.

List of Subjects

47 CFR Part 25

    Communications common carriers, Communications equipment, Radio, 
Reporting and recordkeeping requirements, Satellites, Securities, and 
Telecommunications.

47 CFR Part 101

    Communications equipment, Radio, and Reporting and recordkeeping 
requirements.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications

[[Page 43037]]

Commission amends 47 CFR parts 25 and 101 as follows:

PART 25--SATELLITE COMMUNICATIONS

    1. The authority citation for part 25 continues to read as follows:

    Authority: 47 U.S.C. 701-744. Interprets or applies sec. 303.47 
U.S.C. sections 154, 301, 302, 303, 307, 309, and 332, unless 
otherwise noted.


    2. Section 25.139 is added to read as follows:


Sec. 25.139  NGSO FSS coordination and information sharing between 
MVDDS licensees in the 12.2 GHz to 12.7 GHz band.

    (a) NGSO FSS licensees shall maintain a subscriber database in a 
format that can be readily shared with MVDDS licensees for the purpose 
of determining compliance with the MVDDS transmitting antenna spacing 
requirement relating to qualifying existing NGSO FSS subscriber 
receivers set forth in Sec. 101.129 of this chapter.
    (b) Within ten business days of receiving notification of the 
location of a proposed MVDDS transmitting antenna, the NGSO FSS 
licensee shall provide sufficient information from the database to 
enable the MVDDS licensee to determine whether the proposed MVDDS 
transmitting site meets the minimum spacing requirement.
    (c) If the location of the proposed MVDDS transmitting antenna site 
does not meet the separation requirements of Sec. 101.129 of this 
chapter, then the NGSO FSS licensee shall also indicate to the MVDDS 
licensee within the same ten day period specified in paragraph (b) of 
this section whether the proposed MVDDS transmitting site is acceptable 
at the proposed location.
    (d) Nothing in this section shall preclude NGSO FSS and MVDDS 
licensees from entering into an agreement to accept MVDDS transmitting 
antenna locations that are shorter-spaced from existing NGSO FSS 
subscriber receivers than the distance set forth in Sec. 101.129 of 
this chapter.

    3. Section 25.208 is amended by adding paragraph (n) to read as 
follows:


Sec. 25.208  Power flux density limits.

* * * * *
    (n) In the band 12.2-12.7 GHz, for NGSO FSS space stations, the 
low-angle power flux-density at the Earth's surface produced by 
emissions from a space station for all conditions and for all methods 
of modulation shall not exceed the lower of the following values:
    (1) 158 dB(W/m\2\) in any 4 kHz band for angles of arrival between 
0 and 2 degrees above the horizontal plane; and
    (2) 158+ 3.33([delta]-2) dB(W/m\2\) in any 4 kHz band for angles of 
arrival ([delta]) (in degrees) between 2 and 5 degrees above the 
horizontal plane.

    Note to paragraph (n): These limits relate to the power flux 
density, which would be obtained under assumed free-space 
propagation conditions.

* * * * *

PART 101--FIXED MICROWAVE SERVICES

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

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


    5. Section 101.3 is amended by adding a definition for MVDDS in 
alphabetical order to read as follows:


Sec. 101.3  Definitions.

* * * * *
    Multichannel Video Distribution and Data Service (MVDDS). A fixed 
microwave service licensed in the 12.2-12.7 GHz band that provides 
various wireless services. Mobile and aeronautical operations are 
prohibited.
* * * * *

    6. Section 101.101 is amended by revising the entry for 12,200-
12,700 MHz in the table to read as follows:


Sec. 101.101  Frequency availability.

 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                        Radio service
                                    --------------------------------------------------------------------------------------------------------------------
       Frequency band  (MHz)          Common carrier  (Part   Private radio  (Part    Broadcast auxiliary   Other  (Parts 15, 21,
                                              101)                    101)                 (Part 74)        24, 25, 74, 78 & 100)          Notes
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                   *                  *                  *                  *                  *                  *                  *
12,200-12,700......................  MVDDS.................  MVDDS, POFS...........  .....................  DBS, NGSO FSS........
                   *                  *                  *                  *                  *                  *                  *
--------------------------------------------------------------------------------------------------------------------------------------------------------

* * * * *

    7. Section 101.103 is amended by revising paragraph (f) to read as 
follows:


Sec. 101.103  Frequency coordination procedures.

* * * * *
    (f) (1) Coordination and information sharing between MVDDS and NGSO 
FSS licensees in the 12.2 GHz to 12.7 GHz band. Prior to the 
construction or addition of an MVDDS transmitting antenna in this 
frequency band, the MVDDS licensee shall provide notice of intent to 
construct the proposed antenna site to NGSO FSS licensees operating in 
the 12.2-12.7 GHz frequency band and maintain an Internet web site of 
all existing transmitting sites and transmitting antennas that are 
scheduled for operation within one year including the ``in service'' 
dates. In addition to the location of a proposed new transmitting 
antenna, MVDDS licensees shall provide to the NGSO FSS licensees a 
technical description of the operating characteristics of the proposed 
transmission facility. At a minimum, the following information must be 
included in each notification:
    (i) Name of MVDDS licensee;
    (ii) Geographic location (including NAD83 coordinates) of proposed 
MVDDS transmitting antenna;
    (iii) Maximum EIRP per 24 MHz;
    (iv) Height above average terrain of the transmitting antenna;
    (v) Type of antenna to be utilized;
    (vi) Main beam azimuth and altitude orientation for the proposed 
transmitting antenna;
    (vii) Theoretically modeled antenna radiation pattern;
    (viii) Type(s) of emissions, and;
    (ix) Description of the proposed service area.
    (2) If the proposed MVDDS antenna site does not meet the minimum 
spacing requirements on the date of original notification or on 
subsequent annual anniversary dates of non-operation as set forth in 
Sec. 101.129, then the MVDDS licensee shall not construct the proposed 
transmission facility unless all NGSO FSS licensees having active 
subscribers within the minimum separation distance agree to a shorter 
spacing. Nothing in this section shall preclude MVDDS and NGSO FSS 
licensees from agreeing to accept the siting of new MVDDS transmitting 
antennas that do no meet the minimum distance set forth in 
Sec. 101.129. Incumbent point-to-point licensees'

[[Page 43038]]

(those not licensed as MVDDS) facilities are to be operated in the band 
12,200-12,700 MHz following the procedures, technical standards, and 
requirements of Sec. 101.105 in order to protect stations providing 
Direct Broadcast Satellite Service.
* * * * *

    8. Section 101.105 is amended by adding paragraphs (a)(4) and 
(a)(5) to read as follows:


Sec. 101.105  Interference protection criteria.

    (a) * * *
    (4) 12.2-12.7 GHz band.
    (i) To accommodate co-primary NGSO FSS earth stations in the 12.2-
12.7 GHz band, the PFD of an MVDDS transmitting system must not exceed 
-135 dBW/m\2\ in any 4 kHz band at a reference point at the surface of 
the earth at a distance of 3 kilometers from the MVDDS transmitting 
antenna.
    (ii) To accommodate co-primary Direct Broadcast Satellite Service 
earth stations, an MVDDS transmitting system must not exceed the EPFD 
levels specified in the appropriate region below at any DBS subscriber 
location in accordance with the procedures listed in Sec. 101.1440.
    (A) 168.4 dBW/m2/4kHz in the Eastern region consisting 
of the following states: Maine, New Hampshire, Vermont, Massachusetts, 
Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, 
Delaware, Maryland, Virginia, West Virginia, Kentucky, Tennessee, North 
Carolina, South Carolina, Georgia, Alabama, Mississippi, Louisiana, and 
Florida.
    (B) 169.8 dBW/m2/4kHz in the Midwestern region 
consisting of the following states: Ohio, Michigan, Indiana, Wisconsin, 
Illinois, Minnesota, Iowa, Missouri, Arkansas, South Dakota, Nebraska, 
Kansas, Oklahoma, and Texas.
    (C) 171.0 dBW/m2/4kHz in the Southwestern region 
consisting of the following states: Wyoming, Colorado, New Mexico, 
Utah, Arizona, Nevada, and California (south of 37 deg. North 
Latitude).
    (D) 172.1 dBW/m2/4kHz in the Northwestern region 
consisting of the following states: Washington, Oregon, California 
(north of 37 deg. North Latitude), Idaho, Montana, North Dakota, 
Alaska, and Hawaii.
    (iii) Except for public safety entities, harmful interference 
protection from MVDDS stations to incumbent point-to-point 12 GHz fixed 
stations is not required. Incumbent point-to-point private operational 
fixed 12 GHz stations, except for public safety entities, are required 
to protect MVDDS stations under the process described in 
Sec. 101.103(d).
    (5) All stations operating under this part must protect the radio 
quiet zones as required by Sec. 1.924 of this chapter. Stations 
authorized by competitive bidding are cautioned that they must receive 
the appropriate approvals directly from the relevant quiet zone entity 
prior to operating.
* * * * *
    9. Section 101.107 is amended by revising footnote 6 to the Table 
in paragraph (a) to read as follows:


Sec. 101.107  Frequency tolerance.

    (a) * * *

    \6\ Applicable to private operations fixed point-to-point 
microwave stations and stations providing MVDDS service.
* * * * *

    10. Section 101.109(c) is amended by revising the entry for 12,200-
12,700 MHz and by adding footnote 8 in the Table to read as follows:


Sec. 101.109  Bandwidth.

* * * * *
    (c) * * *

------------------------------------------------------------------------
          Frequency band (MHz)             Maximum authorized bandwidth
------------------------------------------------------------------------
 
                 *        *         *        *        *
12,200 to 12,700\8\....................  500 megahertz
 
                  *        *        *        *        *
------------------------------------------------------------------------
\8\ For incumbent private operational fixed point-to-point stations in
  this band (those not licensed as MVDDS), the maximum bandwidth shall
  be 20 MHz.

* * * * *

    11. Section 101.111 is amended by revising the definition of ``B'' 
following the equation in paragraph (a)(2)(i) to read as follows:


Sec. 101.111  Emission limitations.

* * * * *
    B = Authorized bandwidth in MHz. MVDDS operations in the 12.2-
12.7 GHz band shall use 24 megahertz for the value of B in the 
emission mask equation set forth in this section.
* * * * *

    12. Section 101.113 is amended by revising the entry for 12,200-
12,700 MHz in the table and adding footnote 11 to the table in 
paragraph (a) to read as follows:


Sec. 101.113  Transmitter power limitations.

    (a) * * *

------------------------------------------------------------------------
                                      Maximum allowable EIRP \1\ \2\
      Frequency band  (MHz)      ---------------------------------------
                                      Fixed (dBW)        Mobile (dBW)
------------------------------------------------------------------------
 
*                  *                  *                  *
                  *                  *                  *
12,200 to 12,700 \11\...........  +50...............
 
*                  *                  *                  *
                  *                  *                  *
------------------------------------------------------------------------
\1\ Per polarization.
\2\ For multiple address operations, see Sec.  101.147. Remote alarm
  units that are part of a multiple address central station projection
  system are authorized a maximum of 2 watts.
*                  *                  *                  *
     *                  *                  *
\11\ The EIRP for MVDDS stations is limited to 14.0 dBm per 24 MHz (-
  16.0 dBW per 24 MHz). Incumbent point-to-point stations may use up to
  +50 dBW except for low power systems which were licensed under Sec.
  101.147(q).

* * * * *

    13. Section 101.115 is amended by revising footnote 9 to the table 
in paragraph (c) to read as follows:


Sec. 101.115  Directional antennas.

* * * * *
    (c) * * *
    \9\ Except for Temporary-fixed operations in the band 13200-
13250 MHz with output powers less than 250 mW and as provided in 
Sec. 101.147(q), and except for antennas in the MVDDS service in the 
band 12.2-12.7 GHz.

* * * * *

    14. Section 101.129 is amended by adding paragraph (b) to read as 
follows:


Sec. 101.129  Transmitter location.

* * * * *
    (b) In the 12.2-12.7 GHz band, licensees must not locate MVDDS 
transmitting antennas within 10 km of

[[Page 43039]]

any qualifying NGSO FSS receiver unless mutual agreement is obtained 
between the MVDDS and NGSO FSS licensees. Such agreements must be 
retained by the licensees and made available for inspection by 
interested parties upon request.
    (1) A qualifying NGSO FSS receiver, for the purposes of this 
section, is deemed to be one that is in regular use by an NGSO FSS 
subscriber for normal reception purposes in the 12.2-12.7 GHz band and 
not one for monitoring or testing purposes. In addition, qualifying 
receivers must either be in operation on the date or already be under 
construction and then operating within thirty days of the date that the 
MVDDS licensee notifies the NGSO FSS licensee of its intent to 
construct a new MVDDS transmitting antenna at a specified location.
    (2) Except as provided in paragraph (b)(3) of this section, the 10 
kilometer spacing requirement for each MVDDS transmitting antenna site 
shall not apply with respect to NGSO FSS receivers that might be 
installed or become operational (except for those under construction 
and operating within thirty days as specified in paragraph (b)(1) of 
this section) subsequent to the original date that the MVDDS licensee 
provided notice of its intention to construct a given transmission 
facility.
    (3) In the event that a proposed MVDDS transmitting antenna for 
which notice has been duly given to the NGSO FSS licensees has not been 
placed in normal operation within one calendar year of the date of 
notice, then the MVDDS licensee loses the benefit of the original 
notice. Upon such anniversary, the MVDDS licensee must re-determine 
compliance with the minimum 10 kilometer spacing requirement based upon 
locations of qualifying NGSO FSS receivers on that anniversary date. A 
new determination of compliance with the spacing requirement shall be 
made for each succeeding anniversary of non-operation for each proposed 
MVDDS transmission site or additional antenna. This provision 
contemplates that failure to commence normal operation at a given MVDDS 
transmitting antenna site within one year of the date of NGSO FSS 
notification may require successive relocations of the proposed 
transmitter site in order to meet the minimum spacing distance as 
determined on each anniversary of non-operation.

    15. Section 101.139 is amended by revising the last sentence of 
paragraph (a) to read as follows:


Sec. 101.139  Authorization of transmitters.

    (a) * * * Transmitters designed for use in the 31.0-31.3 GHz band 
and transmitters designed for MVDDS use in the 12,200-12,700 MHz band 
will be authorized under the verification procedure.
* * * * *

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


Sec. 101.141  Microwave modulation.

    (a) Microwave transmitters employing digital modulation techniques 
and operating below 19.7 GHz (except for MVDDS stations in the 12,200-
12,700 MHz band) must, with appropriate multiplex equipment, comply 
with the following additional requirements:
* * * * *

    17. Amend Sec. 101.147 as follows:
    a. Revise the entry in paragraph (a) from ``12,200-12,700 MHz 
(22)'' to read ``12,200-12,700 MHz (31)''.
    b. Add note (31) to the notes following the table in numerical 
order; and
    c. Revise paragraphs (p) and (q) to read as follows:


Sec. 101.147  Frequency assignments.

    (a) * * *

12,200-12,700 MHz (31)

* * * * *
    (31) This frequency band can be used for Multichannel Video 
Distribution and Data Service (MVDDS) shared with Direct Broadcast 
Satellite (DBS) Services on a co-primary non-harmful interference 
basis and on a co-primary basis with NGSO FSS satellite earth 
stations. Incumbent private operational fixed point-to-point 
licensees can also use these frequencies on a site by site basis.
* * * * *
    (p) 12,000-12,700 MHz. The Commission has allocated the 12.2-12.7 
GHz band for use by the Direct Broadcast Satellite Service (DBS), the 
Multichannel Video Distribution and Data Service (MVDDS), and the Non-
Geostationary Satellite Orbit Fixed Satellite Service (NGSO FSS). MVDDS 
shall be licensed on a non-harmful interference co-primary basis to 
existing DBS operations and on a co-primary basis with NGSO FSS 
stations in this band. MVDDS use can be on a common carrier and/or non-
common carrier basis and can use channels of any desired bandwidth up 
to the maximum of 500 MHz provided the EIRP does not exceed 14 dBm per 
24 megahertz. Private operational fixed point-to-point microwave 
stations authorized after September 9, 1983, are licensed on a non-
harmful interference basis to DBS and are required to make any and all 
adjustments necessary to prevent harmful interference to operating 
domestic DBS receivers. Incumbent public safety licensees shall be 
afforded protection from MVDDS and NGSO FSS licensees, however all 
other private operational fixed licensees shall be secondary to DBS, 
MVDDS and NGSO FSS licensees. As of May 23, 2002, the Commission no 
longer accepts applications for new licenses for point-to-point private 
operational fixed stations in this band, however, incumbent licensees 
and previously filed applicants may file applications for minor 
modifications and amendments (as defined in Sec. 1.929 of this chapter) 
thereto, renewals, transfer of control, or assignment of license. 
Notwithstanding any other provisions, no private operational fixed 
point-to-point microwave stations are permitted to cause harmful 
interference to broadcasting-satellite stations of other countries 
operating in accordance with the Region 2 plan for the Broadcasting-
Satellite Service established at the 1983 WARC.
    (q) Special provisions for incumbent low power, limited coverage 
systems in the band segments 12.2-12.7 GHz.
    (1) As of May 23, 2002, the Commission no longer accepts 
applications for new stations in this service and incumbent stations 
may remain in service provided they do not cause harmful interference 
to any other primary services licensed in this band as described in 
paragraph (p) of this section. However, incumbent licensees and 
previously filed applicants may file applications for minor 
modifications and amendments (as defined in Sec. 1.929 of this chapter) 
thereto, renewals, transfer of control, or assignment of license.
    (2) Prior to December 8, 2000, notwithstanding any contrary 
provisions in this part, the frequency pairs 12.220/12.460 GHz, 12.260/
12.500 GHz, 12.300/12.540 GHz and 12.340/12.580 GHz, were authorized 
for low power, limited coverage systems subject to the following 
provisions:
    (i) Maximum equivalent isotropically radiated power (EIRP) shall be 
55 dBm;
    (ii) The rated transmitter output power shall not exceed 0.5 watts;
    (iii) Frequency tolerance shall be maintained to within 0.01 
percent of the assigned frequency;
    (iv) Maximum beamwidth shall not exceed 4 degrees. However, the 
sidelobe suppression criteria contained in Sec. 101.115 shall not 
apply, except that a minimum front-to-back ratio of 38 dB shall apply;
    (v) Upon showing of need, a maximum bandwidth of 12 MHz may be 
authorized per frequency assigned;
    (vi) Radio systems authorized under the provisions of this section 
shall have

[[Page 43040]]

no more than three hops in tandem, except upon showing of need, but in 
any event the maximum tandem length shall not exceed 40 km (25 miles);
    (vii) Interfering signals at the receiver antenna terminals of 
stations authorized under this section shall not exceed -90 dBm and -70 
dBm respectively, for co-channel and adjacent channel interfering 
signals, and
    (viii) Stations authorized under the provisions of this section 
shall provide the protection from interference specified in 
Sec. 101.105 to stations operating in accordance with the provisions of 
this part.

    18. Section 101.601 is amended by adding a sentence at the end of 
the paragraph to read as follows:


Sec. 101.601  Eligibility.

    * * * This subpart shall not apply to stations offering MVDDS in 
the 12.2-12.7 GHz band.

    19. Add subpart P to read as follows:
Subpart P--Multichannel Video Distribution and Data Service Rules for 
the 12.2-12.7 GHz Band
Sec.
101.1401   Service areas.
101.1403   Broadcast carriage requirements.
101.1405   Channeling plan.
101.1407   Permissible operations for MVDDS.
101.1409   Treatment of incumbent licensees.
101.1411   Regulatory status and eligibility.
101.1412   MVDDS eligibility restrictions for cable systems.
101.1413   License term and renewal expectancy.
101.1415   Partitioning and disaggregation.
101.1417   Annual report.
101.1421   Coordination of adjacent area MVDDS stations and 
incumbent public safety POFS stations.
101.1423   Canadian and Mexican coordination.
101.1425   RF safety.
101.1427   MVDDS licenses subject to competitive bidding.
101.1429   Designated entities.
101.1440   MVDDS protection of DBS.


Sec. 101.1401  Service areas.

    Multichannel Video Distribution and Data Service (MVDDS) is 
licensed on the basis of Component Economic Areas (CEAs). CEAs are 
based on Economic Areas delineated by the United States Department of 
Commerce. Each CEA consists of a single economic node and the 
surrounding counties that are economically related to the node. The 
United States has a total of 348 CEAs, and each CEA shall be licensed 
by auction to one licensee.


Sec. 101.1403  Broadcast carriage Requirements.

    MVDDS licensees are not required to provide all local television 
channels to subscribers within its area and thus are not required to 
comply with the must-carry rules, nor the local signal carriage 
requirements of the Rural Local Broadcast Signal Act. See Multichannel 
Video and Cable Television Service Rules, Subpart D (Carriage of 
Television Broadcast Signals), 47 CFR 76.51-76.70. If an MVDDS licensee 
meets the statutory definition of Multiple Video Programming 
Distributor (MVPD), the retransmission consent requirement of section 
325(b)(1) of the Communications Act of 1934, as amended (47 U.S.C. 
325(b)(1)) shall apply to that MVDDS licensee. Any MVDDS licensee that 
is an MVPD must obtain the prior express authority of a broadcast 
station before retransmitting that station's signal, subject to the 
exceptions contained in section 325(b)(2) of the Communications Act of 
1934, as amended (47 U.S.C. 325(b)(2)). Network nonduplication, 
syndicated exclusivity, sports blackout, and leased access rules shall 
not be imposed on MVDDS licensees.


Sec. 101.1405  Channeling plan.

    Each license shall have one spectrum block of 500 megahertz per 
geographic area that can be divided into any size channels. 
Disaggregation is not allowed.


Sec. 101.1407  Permissible operations for MVDDS.

    MVDDS licensees must use spectrum in the 12.2-12.7 GHz band for any 
digital fixed non-broadcast service (broadcast services are intended 
for reception of the general public and not on a subscribership basis) 
including one-way direct-to-home/office wireless service. Mobile and 
aeronautical services are not authorized. Two-way services may be 
provided by using other spectrum or media for the return or upstream 
path.


Sec. 101.1409  Treatment of incumbent licensees.

    Terrestrial private operational fixed point-to-point licensees in 
the 12.2-12.7 GHz band which were licensed prior to MVDDS or NGSO FSS 
satellite stations are incumbent point-to-point stations and are not 
entitled to protection from harmful interference caused by later MVDDS 
or NGSO FSS entrants in the 12.2-12.7 GHz band, except for public 
safety stations which must be protected. MVDDS and NGSO FSS operators 
have the responsibility of resolving any harmful interference problems 
that their operations may cause to these public safety incumbent point-
to-point operations in the 12.2-12.7 GHz band. Incumbent public safety 
terrestrial point-to-point licensees may only make minor changes to 
their stations without losing this protection. This does not relieve 
current point-to-point licensees of their obligation to protect BSS 
operations in the subject frequency band. All point-to-point 
applications, including low-power operations, for new licenses, major 
amendments to pending applications, or major modifications to existing 
licenses for the 12.2-12.7 GHz band are no longer accepted except for 
renewals and changes in ownership. See Sec. 1.929 of this chapter for 
definitions of major and minor changes.


Sec. 101.1411  Regulatory status and eligibility.

    (a) MVDDS licensees are permitted to provide one-way video 
programming and data services on a non-common carrier and/or on a 
common carrier basis. MVDDS is not required to be treated as a common 
carrier service unless it is providing non-Internet voice and data 
services through the public switched network.
    (b) MVDDS licensees in the 12.2-12.7 GHz band are subject to the 
requirements set forth in Sec. 101.7.
    (c) Any entity, other than one precluded by Secs. 101.7 and 
101.1412, is eligible for authorization to provide MVDDS under this 
part. Authorization will be granted upon proper application filing in 
accordance with the Commission's rules.


Sec. 101.1412  MVDDS eligibility restrictions for cable operators.

    (a) Eligibility for MVDDS license. No cable operator, nor any 
entity owning an attributable interest in a cable operator, shall have 
an attributable interest in an MVDDS license whose geographic service 
area significantly overlaps such cable operator's service area, as 
defined in paragraph (d) of this section.
    (b) Definition of cable operator. For the purposes of paragraph (a) 
of this section, the term ``cable operator'' means a company that is 
franchised to provide cable service.
    (c) Waiver of restriction. Upon completion of the initial award of 
MVDDS licenses, a cable operator may petition for a waiver of the 
restriction on eligibility based upon a showing that the petitioner no 
longer has market power in its service area as the result of the entry 
of new competitors, other than an MVDDS licensee, into such service 
area.
    (d) Significant overlap with service area. For purposes of 
paragraph (a) of this section, significant overlap occurs when cable 
operator's subscribers in a CEA make up thirty-five percent or more of 
the households in that CEA.
    (e) Definition of attributable interest. For purposes of paragraph 
(a) of this

[[Page 43041]]

section, an entity shall be considered to have an attributable interest 
in a cable operator or MVDDS licensee pursuant to the following 
criteria:
    (1) A controlling interest shall constitute an attributable 
interest. Controlling interest means majority voting equity ownership, 
any general partnership interest, or any means of actual working 
control (including negative control) over the operation of the entity, 
in whatever manner exercised.
    (2) Any general partnership interest in a partnership;
    (3) Partnership and similar ownership interests (including limited 
partnership interests) amounting to 20 percent or more of the total 
partnership interests, calculated according to both the percentage of 
equity paid in and the percentage of distribution of profits and 
losses;
    (4) Any stock interest amounting to 20 percent or more of the 
outstanding voting stock of an entity;
    (5) Any stock interest, (including non-voting stock) amounting to 
20 percent or more of the total outstanding stock of an entity;
    (6) Stock interests held in trust that exceed the limit set forth 
in paragraph (e) of this section shall constitute an attributable 
interest of any person who holds or shares the power to vote such 
stock, of any person who has the sole power to sell such stock, and, in 
the case of stock held in trust, of any person who has the right to 
revoke the trust at will or to replace the trustee at will. If the 
trustee has a familial, personal, or extra-trust business relationship 
to the grantor or the beneficiary, the stock interests held in trust 
shall constitute an attributable interest of such grantor or 
beneficiary, as appropriate.
    (7) Debt and interests such as warrants and convertible debentures, 
options, or other interests (except non-voting stock) with rights of 
conversion to voting interests shall not constitute attributable 
interests unless and until conversion is effected.
    (8) An interest in a Limited Liability Company (LLC) or Registered 
Limited Liability Partnership (RLLP) amounting to 20 percent or more, 
shall constitute an attributable interest of each such limited partner.
    (9) Officers and directors of a cable operator, an MVDDS licensee, 
or an entity that controls such cable operator or MVDDS licensee, shall 
be considered to have an attributable interest in such cable operator 
or MVDDS licensee.
    (10) Ownership interests that are held indirectly by any party 
through one or more intervening corporations or other entities shall be 
determined by successive multiplication of the ownership percentages 
for each link in the vertical ownership chain and application of the 
relevant attribution benchmark to the resulting product, except that, 
if the ownership for any interest in any link in the chain exceeds 50 
percent or represents actual control, it shall be treated as if it were 
a 100 percent interest.
    (11) Any person who manages the operations of a cable operator or 
an MVDDS licensee pursuant to a management agreement shall be 
considered to have an attributable interest in such cable operator or 
MVDDS licensee, if such person or its affiliate has authority to make 
decisions or otherwise engage in practices or activities that 
determine, or significantly influence:
    (i) The nature or types of services offered by such entity;
    (ii) The terms upon which such services are offered; or
    (iii) The prices charged for such services.
    (12) Any person or its affiliate who enters into a joint marketing 
arrangement with a cable operator, an MVDDS licensee, or an affiliate 
of such entity, shall be considered to have an attributable interest in 
such cable operator, MVDDS licensee, or affiliate, if such person or 
its affiliate has authority to make decisions or otherwise engage in 
practices or activities that determine:
    (i) The nature or types of services offered by such entity;
    (ii) The terms upon which such services are offered; or
    (iii) The prices charged for such services.
    (f) Divestiture. Any cable operator, or any entity owning an 
attributable interest in a cable operator, that would otherwise be 
barred from acquiring an attributable interest in an MVDDS license by 
the eligibility restriction in paragraph (a) of this section, may be a 
party to an MVDDS application (i.e., have an attributable interest in 
the applicant), and such applicant will be eligible for an MVDDS 
license, pursuant to the divestiture procedures set forth in paragraphs 
(f)(1) through (f)(6) of this section.
    (1) Divestiture shall be limited to the following prescribed means:
    (i) An MVDDS applicant holding an attributable interest in a cable 
operator may divest such interest in the cable company.
    (ii) Other MVDDS applicants disqualified under paragraph (a) of 
this section, will be permitted to:
    (A) Partition and divest that portion of the existing service area 
that causes it to exceed the overlap restriction in paragraph (a) of 
this section, subject to applicable regulations of state and local 
governments; or
    (B) Partition and divest that portion of the MVDDS geographic 
service area that exceeds the overlap restriction in paragraph (a) of 
this section.
    (iii) Divestiture may be to an interim trustee if a buyer has not 
been secured in the required period of time, as long as the MVDDS 
applicant has no interest in or control of the trustee and the trustee 
may dispose of the license as it sees fit.
    (2) The MVDDS applicant shall certify as an exhibit to its short 
form application that it and all parties to the application will come 
into compliance with paragraph (a) of this section.
    (3) If such MVDDS applicant is a successful bidder in an auction, 
it must submit with its long-form application a signed statement 
describing its efforts to date and future plans to come into compliance 
with the eligibility restrictions in paragraph (a) of this section.
    (4) If such an MVDDS applicant is otherwise qualified, its 
application will be granted subject to a condition that the applicant 
shall come into compliance with the eligibility restrictions in 
paragraph (a) of this section, within ninety (90) days of final grant 
of such MVDDS license.
    (5) An MVDDS applicant will be considered to have come into 
compliance with paragraph (a) of this section if:
    (i) In the case of the divestiture of a portion of an MVDDS 
license, it has successfully completed the assignment or transfer of 
control of the requisite portion of the MVDDS geographic service area.
    (ii) In all other cases, it has submitted to the Commission a 
signed certification that it has come into compliance with paragraph 
(a) of this section by the following means, identified in such 
certification:
    (A) By divestiture of a disqualifying interest in a cable operator, 
identified in terms of the interest owned, the owner of such interest 
(and, if such owner is not the applicant itself, the relationship of 
the owner to the applicant), the name of the party to whom such 
interest has been divested, and the date such divestiture was executed; 
or
    (B) By divestiture of the requisite portion of the cable operator's 
existing service area, identified in terms of the name of the party to 
whom such interest has been divested, the date such divestiture was 
executed, the name of any regulatory agency that must approve such 
divestiture, and the date on which

[[Page 43042]]

an application was filed for this purpose with the regulatory agency.
    (6) If no such certification or application is tendered to the 
Commission within ninety (90) days of final grant of the initial 
license, the Commission may cancel or rescind the license 
automatically, shall retain all monies paid to the Commission, and, 
based on the facts presented, shall take any other action it may deem 
appropriate.

    Note to paragraph (f): Waivers of Sec. 101.1014(e) may be 
granted upon an affirmative showing: that the interest holder has 
less than a fifty percent voting interest in the licensee and there 
is an unaffiliated single holder of a fifty percent or greater 
voting interest; that the interest holder is not likely to affect 
the local market in an anticompetitive manner; that the interest 
holder is not involved in the operations of the licensee and does 
not have the ability to influence the licensee on a regular basis; 
and that grant of a waiver is in the public interest because the 
benefits to the public of common ownership outweigh any potential 
anticompetitive harm to the market.

Sec. 101.1413  License term and renewal expectancy.

    (a) The MVDDS license term is ten years, beginning on the date of 
the initial authorization grant.
    (b) Application of a renewal expectancy is based on the substantial 
service requirement which is defined as a service that is sound, 
favorable, and substantially above a level of mediocre service which 
might minimally warrant renewal. At the end of the license term, the 
Commission will consider factors such as:
    (1) Whether the licensee's operations service niche markets or 
focus on serving populations outside of areas serviced by other MVDDS 
licensees;
    (2) Whether the licensee's operations serve populations with 
limited access to telecommunications services; and
    (3) A demonstration of service to a significant portion of the 
population or land area of the licensed area.
    (c) The renewal application of an MVDDS licensee must include the 
following showings in order to claim a renewal expectancy:
    (1) A coverage map depicting the served and unserved areas;
    (2) A corresponding description of current service in terms of 
geographic coverage and population served or transmitter locations in 
the served areas; and
    (3) Copies of any Commission Orders finding the licensee to have 
violated the Communications Act or any Commission rule or policy and a 
list of any pending proceedings that relate to any matter described by 
the requirements for the renewal expectancy.


Sec. 101.1415  Partitioning and Disaggregation.

    (a) MVDDS licensees are permitted to partition licensed geographic 
areas along county borders (Parishes in Louisiana or Territories in 
Alaska). Disaggregation will not be permitted by MVDDS licensees in the 
12.2-12.7 GHz band. ``Partitioning'' is the assignment of geographic 
portions of a license along geopolitical or other boundaries. 
``Disaggregation'' is the assignment of discrete portions or ``blocks'' 
of spectrum licensed to a geographic licensee or qualifying entity.
    (b) Eligibility. (1) Parties seeking approval for partitioning 
shall request from the Commission an authorization for partial 
assignment of a license pursuant to Sec. 1.948 of this chapter.
    (2) MVDDS licensees may apply to the Commission to partition their 
licensed geographic service areas to eligible entities and are free to 
partition their licensed spectrum at any time following the grant of a 
license.
    (3) Any existing frequency coordination agreements shall convey 
with the assignment of the geographic area or spectrum, and shall 
remain in effect for the term of the agreement unless new agreements 
are reached.
    (c) Technical standards. (1) Partitioning. In the case of 
partitioning, applicants and licensees must file FCC Form 603 pursuant 
to Sec. 1.948 of this chapter and list the partitioned service area on 
a schedule to the application.
    (2) The geographic coordinates must be specified in degrees, 
minutes, and seconds to the nearest second of latitude and longitude 
and must be based upon the 1983 North American Datum (NAD83).
    (d) Unjust enrichment. 12 GHz licensees that received a bidding 
credit and partition their licenses to entities not meeting the 
eligibility standards for such a bidding credit, will be subject to the 
provisions concerning unjust enrichment as set forth in Sec. 1.2111 of 
this chapter.
    (e) License term. The MVDDS license term is ten years, beginning on 
the date of the initial authorization grant. The license term for a 
partitioned license area shall be the remainder of the original 
licensee's license term as provided for in Sec. 101.1413.
    (f) Construction requirements. Applications requesting approval for 
partitioning must include a certification by each party stating that 
one or both parties will satisfy the construction requirement set forth 
in Sec. 101.1413. Failure by a party to meet its respective 
construction requirement will result in the automatic cancellation of 
its license without further Commission action.


Sec. 101.1417  Annual report.

    Each MVDDS licensee shall file with the Public Safety & Private 
Wireless Division of the Wireless Telecommunications Bureau of the 
Commission two copies of a report by March 1 of each year for the 
preceding calendar year. This report must include the following:
    (a) Name and address of licensee;
    (b) Station(s) call letters and primary geographic service area(s); 
and
    (c) The following statistical information for the licensee's 
station (and each channel thereof):
    (1) The total number of separate subscribers served during the 
calendar year;
    (2) The total hours of transmission service rendered during the 
calendar year to all subscribers;
    (3) The total hours of transmission service rendered during the 
calendar year involving the transmission of local broadcast signals; 
and
    (4) A list of each period of time during the calendar year in which 
the station rendered no service as authorized, if the time period was a 
consecutive period longer than 48 hours, and


Sec. 101.1421  Coordination of adjacent area MVDDS stations and 
incumbent public safety POFS stations.

    (a) MVDDS licensees in the 12.2-12.7 GHz band are required to 
develop sharing and protection agreements based on the design and 
architecture of their systems, in order to ensure that no harmful 
interference occurs between adjacent geographical area licensees. MVDDS 
licensees shall:
    (1) Engineer systems to be reasonably compatible with adjacent and 
co-channel operations in the adjacent areas on all its frequencies; and
    (2) Cooperate fully and in good faith to resolve interference and 
transmission problems that are present on adjacent and co-channel 
operations in adjacent areas.
    (b) Harmful interference to public safety stations, co-channel 
MVDDS stations operating in adjacent geographic areas, and stations 
operating on adjacent channels to MVDDS stations is prohibited. In 
areas where the CEAs are in close proximity, careful consideration 
should be given to power requirements and to the location, height, and 
radiation pattern of the transmitting and receiving antennas. Licensees 
are expected to cooperate fully in attempting to resolve problems of 
potential interference before bringing

[[Page 43043]]

the matter to the attention of the Commission.
    (c) Licensees shall coordinate their facilities whenever the 
facilities have optical line-of-sight into other licensees' areas or 
are within the same geographic area. Licensees are encouraged to 
develop operational agreements with relevant licensees in the adjacent 
geographic areas. Incumbent public safety POFS licensee(s) shall retain 
exclusive rights to its channel(s) within the relevant geographical 
areas and must be protected in accordance with the procedures in 
Sec. 101.103. A list of public safety incumbents is attached as 
Appendix I to the Memorandum Opinion and Order and Second Report and 
Order, Docket 98-206 (released May 23, 2002). Please check with the 
Commission for any updates to that list.


Sec. 101.1423  Canadian and Mexican coordination.

    Pursuant to Sec. 2.301 of this chapter, MVDDS systems in the United 
States within 56 km (35 miles) of the Canadian and Mexican border will 
be granted conditional licenses, until final international agreements 
are approved. These systems may not cause harmful interference to 
stations in Canada or Mexico. MVDDS stations must comply with the 
procedures outlined under Sec. 101.147(p) and Sec. 1.928(f)(1) and (2) 
of this chapter until final international agreements concerning MVDDS 
are signed. Section 1.928(f) of this chapter states that transmitting 
antennas can be located as close as five miles (eight kilometers) of 
the border if they point within a sector of 160 degrees away from the 
border, and as close as thirty-five miles (fifty-six kilometers) of the 
border if they point within a sector of 200 degrees toward the border 
without coordination with Canada. MVDDS licensees shall apply this 
method near the Canadian and Mexican borders. No stations are allowed 
within 5 miles of the borders.


Sec. 101.1425  RF safety.

    MVDDS stations in the 12.2-12.7 GHz frequency band do not operate 
with output powers that equal or exceed 1640 watts EIRP and therefore 
will not be subject to the routine environmental evaluation rules for 
radiation hazards, as set forth in Sec. 1.1307 of this chapter.


Sec. 101.1427  MVDDS licenses subject to competitive bidding.

    Mutually exclusive initial applications for MVDDS licenses in the 
12.2-12.7 GHz band are subject to competitive bidding. The general 
competitive bidding procedures set forth in part 1, subpart Q of this 
chapter will apply unless otherwise provided.


Sec. 101.1429  Designated entities.

    (a) Eligibility for small business provisions. (1) A very small 
business is an entity that, together with its controlling interests and 
affiliates, has average annual gross revenues not exceeding $3 million 
for the preceding three years.
    (2) A small business is an entity that, together with its 
controlling interests and affiliates, has average annual gross revenues 
not exceeding $15 million for the preceding three years.
    (3) An entrepreneur is an entity that, together with its 
controlling interests and affiliates, has average annual gross revenues 
not exceeding $40 million for the preceding three years.
    (4) A consortium of very small businesses is a conglomerate 
organization formed as a joint venture between or among mutually 
independent business firms, each of which individually satisfies the 
definition in paragraph (a)(1) of this section. A consortium of small 
businesses is a conglomerate organization formed as a joint venture 
between or among mutually independent business firms, each of which 
individually satisfies the definition in paragraph (a)(2) of this 
section. A consortium of entrepreneurs is a conglomerate organization 
formed as a joint venture between or among mutually independent 
business firms, each of which individually satisfies the definition in 
paragraph (a)(3) of this section.
    (5) For purposes of determining whether an entity meets any of the 
definitions set forth in paragraphs (a)(1), (a)(2), (a)(3), or (a)(4) 
of this section, the gross revenues of the entity, its controlling 
interests and affiliates shall be considered in the manner set forth in 
Secs. 1.2110(b) and (c) of this chapter.
    (b) Bidding credits. A winning bidder that qualifies as a very 
small business or a consortium of very small businesses as defined in 
this section may use the bidding credit specified in 
Sec. 1.2110(f)(2)(i) of this chapter. A winning bidder that qualifies 
as a small business or a consortium of small businesses as defined in 
this section may use the bidding credit specified in 
Sec. 1.2110(f)(2)(ii) of this chapter. A winning bidder that qualifies 
as an entrepreneur or a consortium of entrepreneurs as defined in this 
section may use the bidding credit specified in Sec. 1.2110(f)(2)(iii) 
of this chapter.


Sec. 101.1440  MVDDS protection of DBS.

    (a) An MVDDS licensee shall not begin operation unless it can 
ensure that the EPFD from its transmitting antenna at all DBS customers 
of record locations is below the values listed for the appropriate 
region in Sec. 101.105(a)(4)(ii). Alternatively, MVDDS licensees may 
obtain a signed written agreement from DBS customers of record stating 
that they are aware of and agree to their DBS system receiving MVDDS 
signal levels in excess of the appropriate EFPD limits specified in 
Sec. 101.105(a)(4)(ii). DBS customers of record are those who had their 
DBS receive antennas installed prior to or within the 30 day period 
after notification to the DBS operator by the MVDDS licensee of the 
proposed MVDDS transmitting antenna site.
    (b) MVDDS licensees are required to conduct a survey of the area 
around its proposed transmitting antenna site to determine the location 
of all DBS customers of record that may potentially be affected by the 
introduction of its MVDDS service. The MVDDS licensee must assess 
whether the signal levels from its system, under its deployment plans, 
would exceed the appropriate EPFD levels in Sec. 101.105(a)(4)(ii) at 
any DBS customer of record location. Using EPFD calculations, terrain 
and building structure characteristics, and the survey results, an 
MVDDS licensee must make a determination of whether its signal level(s) 
will exceed the EPFD limit at any DBS customer of record sites. To 
assist in making this determination, the MVDDS provider can use the 
EPFD contour model developed by the Commission and described in 
Appendix J of the Memorandum Opinion and Order and Second Report and 
Order, ET Docket 98-206 or on the OET website at http://www.fcc.gov/oet/dockets/et98-206.
    (c) If the MVDDS licensee determines that its signal level will 
exceed the EPFD limit at any DBS customer site, it shall take whatever 
steps are necessary, up to and including finding a new transmit site, 
to ensure that the EPFD limit will not be exceeded at any DBS customer 
location.
    (d) Coordination between MVDDS and DBS licensees. (1) At least 90 
days prior to the planned date of MVDDS commencement of operations, the 
MVDDS licensee shall provide the following information to the DBS 
licensee(s):
    (i) Geographic location (including NAD 83 coordinates) of its 
proposed station location;
    (ii) Maximum EIRP of each transmitting antenna system;
    (iii) Height above ground level for each transmitting antenna;

[[Page 43044]]

    (iv) Antenna type along with main beam azimuth and altitude 
orientation information, and description of the antenna radiation 
pattern;
    (v) Description of the proposed service area; and
    (vi) Survey results along with a technical description of how it 
determined compliance with the appropriate EPFD level at all DBS 
subscriber locations.
    (2) No later than forty-five days after receipt of the MVDDS system 
information in paragraph (d)(1) of this section, the DBS licensee(s) 
shall provide the MVDDS licensee with a list of any new DBS customer 
locations that have been installed in the 30-day period following the 
MVDDS notification. In addition, the DBS licensee(s) could indicate 
agreement with the MVDDS licensee's technical assessment, or identify 
DBS customer locations that the MVDDS licensee failed to consider or 
DBS customer locations where they believe the MVDDS licensee erred in 
its analysis and could exceed the prescribed EPFD limit.
    (3) Prior to commencement of operation, the MVDDS licensee must 
take into account any new DBS customers or other relevant information 
provided by DBS licensees in response to the notification in paragraph 
(d)(1) of this section.
    (e) Beginning thirty days after the DBS licensees are notified of a 
potential MVDDS site under paragraph (d)(1) of this section, the DBS 
licensees have the responsibility of ensuring that all future installed 
DBS receive antennas on its system are located in such a way as to 
avoid the MVDDS signal. These later installed receive antennas shall 
have no further rights of complaint against the notified MVDDS 
transmitting antenna(s).
    (f) In the event of a major modification as defined in Sec. 1.929 
of this chapter, such as the addition of an antenna, to an MVDDS 
station, the procedures of paragraphs (d) and (e) of this section and 
rights of complaint begin anew. Exceptions to this are renewal, 
transfer of control, and assignment of license applications.
    (g) Interference complaints. The MVDDS licensee must satisfy all 
complaints of interference to DBS customers of record which are 
received during a one year period after commencement of operation of 
the transmitting facility. Specifically, the MVDDS licensee must 
correct interference caused to a DBS customer of record or cease 
operation if it is demonstrated that the DBS customer is receiving 
harmful interference from the MVDDS system or that the MVDSS signal 
exceeds the permitted EPFD level at the DBS customer location.

[FR Doc. 02-15779 Filed 6-25-02; 8:45 am]
BILLING CODE 6712-01-P