NEWSReport No. DC-96-101   ACTION IN DOCKET CASE         
November 12, 1996

            FCC PROPOSES NEW WIRELESS COMMUNICATIONS SERVICE
    IN 2.3 GHz BAND IMPLEMENTING PROVISION OF 1997 APPROPRIATIONS
ACT
                         (GN Docket No. 96-228)
                                    
     The Commission today proposed to create a new Wireless
Communications Service
("WCS") in the 2305-2320 and 2345-2360 MHz bands that would allow
licensees to provide
any fixed, mobile or radiolocation service, or satellite Digital
Audio Radio Services
("satellite DARS"), consistent with the international frequency
allocations for these bands. 
The Commission also proposed to award these WCS licenses through
competitive bidding, to
adopt no restrictions on eligibility for a WCS license, and to
allow WCS licensees to
partition their service areas, disaggregate spectrum, and
franchise portions of their spectrum
or service areas on a leased basis.

     The Commission issued a Notice of Proposed Rule Making in
accordance with the
Omnibus Consolidated Appropriations Act, 1997 (the
"Appropriations Act"), which directed
the Commission to reallocate these spectrum bands.  In addition
to the issues outlined above,
the NPRM seeks comment from interested parties on the following
issues:

      the appropriate geographic scope for WCS licenses (e.g.,
Major Trading Areas,
       regional areas, or nationwide);

      the appropriate amount of spectrum for each WCS license;

      how best to implement the Appropriations Act's requirement
that the Commission
       "take into account the needs of public safety radio
services"; and

      whether build-out requirements should be adopted for WCS
licensees.

     The NPRM proposes generally to employ the procedural and
competitive bidding
rules contained in Part 1, Subpart Q of the Commission's rules in
licensing WCS, with some
minor modifications.  Finally, the Commission also proposes to
establish service and
technical rules to ensure that harmful interference is not caused
to other radio services.  The
Commission believes that these proposals will enable any WCS
licensee to use its spectrum
in the most technically and economically efficient manner
practicable.


                                  (over)

                                   - 2 -


     The Appropriations Act requires that the Commission commence
the competitive
bidding for the 2305-2320 and 2345-2360 MHz bands no later than
April 15, 1997, and to
conduct the bidding in a manner that ensures that all proceeds
are deposited in the Treasury
no later than September 30, 1997.  In order to assist the
Commission in carrying out these
obligations, the Appropriations Act allows the Commission to use
various expedited
administrative procedures.  Interested parties must file comments
in this proceeding by
December 4, 1996, and reply comments by December 16, 1996.

     Action by the Commission on November 8, 1996, by Notice of
Proposed Rule
Making (FCC 96-441).  Chairman Hundt, Commissioners Quello, Ness,
and Chong, with
Commissioner Quello issuing a separate statement..


  -FCC-


     News Media contact: Kara Palamaras at (202) 418-0600.
     Office of Engineering and Technology contact: Bruce Franca
at (202) 418-2470.
     Wireless Telecommunications Bureau contact: Jonathan Cohen
at (202) 418-0797.