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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554

In the Matter of    
               
STATE OF ARIZONA                   )
DEPARTMENT OF PUBLIC SAFETY        )    FCC File Nos. 9504713368 & 9504713369
                                   )
Regarding Grant of Secondary Status to       )
Authorizations on Stations KHI60 and KEX38        )


                    ORDER ON RECONSIDERATION


   Adopted:  May 28, 1999               Released:  June 1, 1999

By the Chief, Public Safety and Private Wireless Division, Wireless Telecommunications Bureau:

                         I.  INTRODUCTION

     1.  On June 7, 1995, the State of Arizona Department of Public Safety ("Arizona") requested that the
Private Wireless Division (now the Public Safety and Private Wireless Division) of the Wireless
Telecommunications Bureau (Bureau) reconsider the imposition of a secondary status condition on the
authorization for Stations KHI60 and KEX38 operating on 2196 and 2146 MHz, respectively.  Arizona
operates a point-to-point fixed microwave service (FMS) in the 2 GHz band. For the reasons discussed herein,
we grant the request.

                         II.  BACKGROUND

     2.  On January 16, 1992, the Commission proposed to reallocate portions of the 2 GHz band from
FMS to emerging telecommunications technology services, including personal communication services (PCS). 
The Commission stated that it intended to reaccommodate the FMS licensees in a manner that would be most
advantageous for the incumbent users, least disruptive to the public and most conducive to the introduction of
new services.  Accordingly, first, to preserve the availability of the existing vacant 2 GHz spectrum, the
Commission proposed that all new facilities in the 2 GHz band be licensed on a secondary basis.  Second,
rather than immediately clearing the 2 GHz band of the incumbent FMS users, the Commission proposed that
the incumbents be permitted to continue to occupy the band on a co-primary basis with the new PCS licensees
for a significant length of time, by the end of which the incumbents were to relocate to another portion of
spectrum.  The Commission also proposed to provide the PCS licensees with the option of requiring the FMS
incumbents to relocate sooner and paying the additional costs caused by the earlier relocation.  The practical
effect of the Commission's proposal was that incumbent FMS licensees that were authorized on a primary basis
would have the costs of relocating to other bands paid for by the new PCS licensees if the PCS licensees
required them to relocate.  On the other hand, FMS licensees that were authorized on a secondary basis would
be treated differently. 

     4.  On May 14, 1992, the Microwave Branch of the Licensing Division of the former Private Radio
Bureau (Microwave Branch) issued a Public Notice stating that while new facilities in the 2 GHz band would
be given secondary status, secondary status would not be accorded to stations making certain minor or technical
modifications of facilities licensed prior to January 16, 1992.  In a First Report and Order and Third Notice
of Proposed Rule Making in ET Docket No. 92-9, the Commission affirmed this approach.  The Commission
stated that existing 2 GHz facilities could make certain modifications and minor extensions and retain primary
status, but major extensions or expansions would be given secondary status unless a special showing of need
was made to justify primary status. 

     5.  On April 3, 1995, Arizona filed a modification application for Stations KHI60 and KEX38 seeking
to change the station location and antenna azimuth of Station KHI60, and to change the antenna azimuth of
Station KEX38.  The Microwave Branch issued a modified license for Stations KHI60 and KEX38, effective
May 22, 1995, that contained a secondary status condition.  Prior to this time, Stations KHI60 and KEX38
had been authorized to operate on a primary basis.

     6.  On June 7, 1995, Arizona timely requested reconsideration of the assignment of Stations KHI60
and KEX38 on a secondary basis and re-issuance of the license on a primary basis.  Arizona stated that in
accordance with Section 94.61(b) of the Commission's Rules, as then in effect, facilities licensed before
January 16, 1992 are permitted to make modifications and retain their primary status.  Arizona stated that
its facility was licensed prior to January 16, 1992, and, therefore, that it should be permitted to retain primary
status.

                         III.  DISCUSSION

     3.  Under the rules in effect at the time Arizona applied for a modification of its station license,
facilities licensed before January 16, 1992, were permitted to make minor modifications and retain their
primary status.  In its application, Arizona sought changes to Station KHI60's facilities consisting of moving
the station location within the county of Cochise, Arizona, changing the antenna azimuth, and changing the
antenna height.  The requested change to Station KEX38 facilities was a change of antenna azimuth.  These
changes are properly classified as minor modifications under the rules then in effect.  Therefore, we find that
Arizona's licensed facilities should have retained primary status after the approval of the requested changes. 
Accordingly, we will grant Arizona's request for reconsideration and re-issue the license for Stations KHI60
and KEX38 with primary status.  

                      IV.  Ordering Clauses

     9.  ACCORDINGLY, IT IS ORDERED that pursuant to Sections 4(i), 303(r) and 405 of the
Communications Act of 1934, 47 U.S.C.  154(i), 303(r) and 405, and Sections 1.106 and 101.69 of the
Commission's Rules, 47 C.F.R.  1.106 and 101.69, the petition for reconsideration of State of Arizona
Department of Public Safety IS GRANTED and the license will be re-issued with primary status.

     10.  This action is taken under delegated authority pursuant to Sections 0.131 and 0.331 of the
Commission's Rules, 47 C.F.R.  0.131, 0.331.


                         FEDERAL COMMUNICATIONS COMMISSION
                         


                         D'wana R. Terry
                         Chief, Public Safety and Private Wireless Division
                         Wireless Telecommunications Bureau