NEWSReport No. DC-2682 ACTION IN DOCKET CASE November 10, 1994 COMMISSION PROPOSES TO SPEED PROCESSING OF WIRELESS CABLE APPLICATIONS (MM DOCKET 94-131, PP DOCKET 93-253) The Commission has proposed streamlining the procedures by which applications for new facilities in the single channel and multichannel Multipoint Distribution Services (MDS) are filed and processed. The Commission's goal in instituting this proceeding is to facilitate development of wireless cable, the delivery of video programming via microwave channels to subscribers using MDS and/or Instructional Television Fixed Service (ITFS) channels. The Commission has consistently maintained that, in providing communication services, the public interest is better served by competition. Wireless cable can be an effective competitor to other multichannel video programming providers, including cable, if operators can accumulate enough channels to meet subscriber demand and offer a comparable range of programming channels. However, the difficulty of accumulating sufficient channel capacity remains a major obstacle to many wireless cable operators. In an effort to consolidate the processing of applications for licenses that may be used to provide wireless cable services in one organization, the Commission recently transferred responsibility for MDS from the Common Carrier Bureau to the Mass Media Bureau. This proceeding is a further effort to expedite the processing of MDS and ITFS applications. The Commission proposes to utilize a filing window or windows for predetermined geographic areas, such as Metropolitan Statistical Areas (MSAs) or Areas of Dominant Influence (ADIs). Under this approach, the Commission would accept "short-form" applications for the vacant channels in each geographic area across the country and if there are mutually exclusive applications, would choose between the mutually exclusive applicants on the basis of competitive bidding. The successful bidders would then be required to submit a long form application. Successful applicants would have the ability to construct and operate MDS channels within their geographic license area subject to protection of incumbent licensees. The Commission solicited comment on this proposal, including the appropriate pre-determined geographic areas. (over) - 2 - The Commission asked for comment about whether it should restrict eligibility to existing MDS licensees in the area. The Commission also asked for comment about other possible filing windows, such as national filing windows or filing windows for vacant E, F or H channels in areas where there are already existing E, F or H stations operating. For these alternatives, the Commission asked for comment about the technical submissions required to determine mutual exclusivity. The Commission also proposed adopting a mandatory electronic filing system for MDS, which might serve as a model for establishing an efficient modern approach to submitting applications to the Commission. The electronic filing proposal is the only aspect of the proceeding which is proposed to apply also to ITFS, and the Notice solicits comment on whether there should be an exception that would permit those educators not financially supported by a wireless cable operator to continiue to submit paper applications. The proposed streamlined filing procedures, including awarding licenses by auction, would govern applications accepted for filing after the MDS freeze, imposed by the Commission in 1992, is lifted. These procedures, once adopted, should promote rapid applications processing and provide enhanced opportunities for MDS to reach its competitive potential. The Commission said that its proposals should avoid the backlog of applications that has delayed and stifled the deployment of MDS in the past. It said that accelerated processing permitted by electronic filing and data collection, along with competitive bidding procedures, will reduce the likelihood of speculative filings and generally expedite the initiation of new service. Action by the Commission November 10, 1994, by Notice of Proposed Rulemaking (FCC 94-293). Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong. - FCC - New Media contacts: Audrey Spivack and Rosemary Kimball at (202) 418-0500. Mass Media Bureau contacts: Sharon Bertelsen at (202) 416-0892 and Keith Larson at (202) 418-1640.