NEWS Report No. IB 97-13 INTERNATIONAL ACTION May 16, 1997 INTERNATIONAL BUREAU GRANTS MAP MOBILE COMMUNICATIONS, INC.'S REQUEST TO EXCEED 25% FOREIGN OWNERSHIP BENCHMARK Today the International Bureau released an Order that grants MAP Mobile Communications, Inc.'s ("MAP") Petition for Declaratory Ruling to exceed the 25 percent foreign ownership benchmark of Section 310(b)(4) of the Communications Act of 1934, as amended ("Act"). The Bureau determined that allowing MAP to acquire narrowband Personal Communications Services ("PCS") and additional Commercial Mobile Radio Services ("CMRS") paging licenses would not be contrary to the public interest. This decision will allow MAP to participate in the narrowband PCS and CMRS paging spectrum auctions without uncertainty about its foreign ownership status. MAP is a commercial mobile service licensee providing telecommunications services in the United States, including a nation-wide messaging service operating on a 929 MHz channel and local messaging services in major U.S. markets. MAP is predominantly owned and controlled by Australians and thus exceeds the 25 percent foreign ownership benchmark set forth in Section 310(b)(4) of the Act. Section 310(b)(4) of the Act grants the Commission discretion to allow higher levels of foreign investment if it finds that the proposed investment is not inconsistent with the public interest. MAP sought this determination prior to the spectrum auctions so that it could participate without uncertainty about its ownership status. The International Bureau concludes that allowing MAP to acquire narrowband PCS and/or additional CMRS paging licenses would be in the public interest. The Bureau finds that Australia satisfies the Section 310(b)(4) Effective Competitive Opportunities (ECO) test. In applying this test, the Bureau finds that there are no de jure or legal barriers to U.S. carriers entering the relevant market, the Australian mobile services market. With regard to de facto or practical barriers to entry, the Bureau finds no evidence of such barriers. Moreover, Australia has made binding commitments to ensure an independent regulator and fair rules of competition, beginning January 1, 1998, as part of the World Trade Organization (WTO) agreement signed by 69 countries on February 15, 1997. Thus the Bureau finds that Australia satisfies the ECO test. The Bureau also finds that MAP's participation in the auctions serves the public interest by maximizing competition and service options. Furthermore, the Bureau finds that the WTO agreement represents an important public interest factor in granting MAP's request. Based on these findings, the Bureau grants MAP's petition. Action by the Chief, International Bureau, May 16, 1997, by Order (DA 97-1037). - FCC - News Media contact: Meribeth McCarrick at (202) 418-0256. International Bureau contact: Adam Krinsky at (202) 418-1099.