Report No. DC95-26         ACTION IN DOCKET CASE           February 7, 1995

     
                COMMISSION AMENDS INSTRUCTIONAL TELEVISION 
                            FIXED SERVICE RULES
                           (MM DOCKET NO. 93-24)

     The Commission today adopted rules to increase the
efficiency of its processing of applications for new
Instructional Television Fixed Service (ITFS) stations, major
amendments to such applications, and major changes to existing
stations.  The rules are intended to continue lowering regulatory
barriers to the deployment of wireless cable by facilitating more
rapid authorization of new and  modified ITFS facilities.

     Based on the record in this proceeding, the FCC concluded
that adoption of an ITFS window filing procedure will allow the
Commission to accept, consider, and dispose of ITFS applications
in the most efficient and timely manner possible.  The new window
procedure would be enhanced by a proposed electronic filing and
processing system.  In addition, the Commission will implement
other policies and rule modifications to increase processing
efficiency.  For example, in an effort to diminish speculative
applications, the Commission will limit sales of unbuilt ITFS
facilities to out-of-pocket expenses.   Additionally, the
Commission specified that its rules on protective service areas
for wireless cable lessees would be prospective only to eliminate
the possibility that ITFS applicants and licensees might request
interference protection solely to create mutual exclusivity with
otherwise grantable, previously filed ITFS applications.  

     The Commission also adopted a number of technical rules
designed to further streamline the ITFS window application filing
system.   These improvements should expedite new and improved
ITFS service and prompt the continued development of the wireless
cable service.  The Commission also made changes to the rule that
limits an ITFS licensee to four channels in a single area of
operation.   Currently, the Commission has an informal policy of
considering a single area of operation for this purpose to extend
no further than 20 miles from the transmitter site.  The
Commission believes that this is a clear benchmark with which
applicants can easily comply and which will also expedite 


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processing.   In today's action, the Commission adopted the 20-
mile criterion as part of the rules.  The Commission said that
FCC staff, educators, and wireless cable entities are already
familiar with this standard, having utilized it for a number of
years. 

     With respect to excess capacity lease terms, the Commission
was mindful that the wireless cable industry requires substantial
equity investment in order to become a viable competitor in the
video marketplace.  The Commission noted that where there is
uncertain long-term availability of the ITFS channels that
provide the basic capacity for that system, a potential financier
is likely to exercise caution before investing in an MDS system.  
The Commission stated that authorizing lease agreements that
extend beyond the end of the ITFS license term will significantly
accelerate the development of the wireless cable industry and
provide competition to wired cable.

     Therefore, the Commission revised its policy to permit an
educator to execute a 10-year lease agreement without regard to
the duration of the educator's current license term.  The
Commission noted that the existence of a lease that extends
beyond the license term in no way affects the duration of that
license and the licensee's future use of the frequency. 

     Action by the Commission February 7, 1995, by Report and
Order (FCC 95-51).  Chairman Hundt, Commissioners Quello,
Barrett, Ness, and Chong.

                                   -FCC-

     News Media contact: Patricia A. Chew at (202) 418-0500.
     Mass Media Bureau contact: Paul R. Gordon at (202) 418-2120.