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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of Applications of) ) JACKSON ELECTRIC ) FCC File Nos. 9508718936, MEMBERSHIP CORPORATION ) 9508719092, 9508718982, ) 9508718937 for New Point-to-Point Microwave Radio Service ) Stations WPJA478, Clermont, Georgia, and ) WPJA479, Norcross, Georgia, and for ) Modification of Facilities for ) Stations WNES871, Gainesville, Georgia, ) and WNTZ946, Buford, Georgia ) ORDER ON RECONSIDERATION Adopted: September 24, 1999 Released: September 24, 1999 By the Chief, Public Safety and Private Wireless Division, Wireless Telecommunications Bureau: I. INTRODUCTION 1. Jackson Electric Membership Corporation (Jackson) operates a fixed microwave service (FMS) network as part of its internal communications network. On October 25, 1995, Jackson filed a request for reconsideration concerning the imposition of a secondary status condition on the new 2 GHz paths in its network between Stations WPJA478, Clermont, Georgia, and WNES871, Gainesville, Georgia, and between Stations WPJA479, Norcross, Georgia, and WNTZ946, Buford, Georgia. For the reasons set forth below, we deny Jackson's request. II. BACKGROUND 2. On January 16, 1992, the Commission issued a Notice of Proposed Rule Making proposing to reallocate portions of the 2 GHz band from FMS to emerging technology services (ET), including the personal communications services. 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 to license all new facilities in the 2 GHz band on a secondary basis. Second, rather than immediately clearing the 2 GHz band of the incumbent FMS users, the Commission proposed to permit the incumbents to continue to occupy the band on a co-primary basis with the ET licensees for a significant length of time, by the end of which the incumbents were to relocate to another portion of the spectrum. The Commission also proposed to provide the ET licensees with the option of requiring the FMS incumbents to relocate sooner if the ET licensee paid the additional costs caused by the earlier relocation. One 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 ET licensees if the ET licensees forced them to relocate. On the other hand, FMS licensees that were authorized on a secondary basis would be treated differently. 3. On May 14, 1992, the Microwave Branch of the former Private Radio Bureau issued a Public Notice stating that while new facilities would be licensed on a secondary basis, secondary status would not be accorded to modifications of facilities licensed prior to January 16, 1992 (the date the ET NPRM was adopted). Secondary status also would not be accorded in situations where additional links would be required to complete a communications network or where new facilities and/or frequencies were operationally connected to a network system licensed prior to January 16, 1992, when the applicant made a valid showing of its need for the new facilities. In a First Report and Order and Third Notice of Proposed Rule Making, released October 16, 1992, 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 that major extensions or expansions would result in a station receiving secondary status unless a special showing of need was made to justify primary status. 4. In August 1995, Jackson filed several applications for modification of its existing licenses and for licenses for new stations in connection with its proposal to reconfigure its network. Previously, Jackson had operated a 2 GHz network in northern Georgia consisting of six stations. Jackson proposed to convert its existing 2 GHz paths to 6 GHz paths, to establish a new station that would be connected to its network via a 6 GHz path, and to use its 2 GHz equipment to establish new 2 GHz paths between the network and two other new stations. Jackson states that the reconfiguration was "totally mandated by the demands of [its] business and was undertaken with tight budgetary restraints." 5. Jackson's license applications were granted on September 26, 1995, with the licenses for the new stations effective as of October 17, 1995. The licenses were granted with the condition that the 2 GHz paths be operated on a secondary, non-interference basis. On October 25, 1995, Jackson timely submitted a request asking that the licenses be granted with primary status. III. DISCUSSION 6. Under the rules in effect at the time Jackson's applications were granted, secondary status would be accorded major extensions or expansions to 2 GHz systems licensed prior to January 16, 1992, unless the incumbent licensee made a special showing of need to justify primary status. Through the subject applications, Jackson sought to connect two new stations to its network via 2 GHz paths, and also to connect a new station to its network via a 6 GHz path. We find that the addition of the two new 2 GHz facilities constitutes a major expansion or extension of Jackson's network. Therefore, to receive primary status for the 2 GHz paths at issue, Jackson was required to make a special showing of need to justify primary status. We conclude that Jackson failed to make a sufficient showing. 7. In support of its request for primary status, Jackson states that it uses its network to meet its internal communications needs and that the reconfiguration of the network was mandated by the demands of its business and was undertaken with tight budgetary constraints. Jackson does not, however, provide any specifics regarding the purpose of its new stations. Moreover, Jackson does not explain why it needs primary status for the subject 2 GHz paths. Rather, Jackson relies upon a statement in the Public Notice that ". . . conditional secondary status should not be applied in certain situations where additional links may be required to complete a communications network . . . ." We nonetheless note that the Public Notice also stated that secondary status would not be imposed where licensees made a valid showing of need. Thus, the Public Notice required more from licensees than a simple declarative statement that the stations were necessary to complete the licensee's network. We further note that the Public Notice was superseded by the ET First Report and Order where, as stated above, the Commission required licensees to make a special showing of need to justify primary status for major extensions to their networks. Therefore, we conclude, based on the information Jackson provided, Jackson has not made a sufficient showing of need to justify primary status for the subject 2 GHz paths. Accordingly, we find that the licenses were properly accorded secondary status and deny Jackson's request for reconsideration. IV. ORDERING CLAUSES 8. Accordingly, IT IS ORDERED that pursuant to Sections 4(i) and 405 of the Communications Act of 1934, 47 U.S.C.  154(i), 405, and Sections 1.106 and 101.69 of the Commission's Rules, 47 C.F.R.  1.106, 101.69, the request for reconsideration of Jackson Electric Membership Corporation filed October 25, 1995, IS DENIED. 9. 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