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$//Order, Waiver-900 MHz SMR Gross Revenues, DA96-651//$
$/ 90.814, Definitions/$
                                                       DA 96-651

                                Before the                  
                     FEDERAL COMMUNICATIONS COMMISSION
                          Washington, D.C.  20554


In the Matter of                   )
                              )              
Waiver of Certain Provisions       )
of Section 90.814 of the           )    
Commissions's Rules --             )
900 MHz Special Mobile             )
Radio Service Applicants--              )
Gross Revenues--                   )
Audited Financial Statements       )

ORDER
                
     Adopted:  May 8, 1996                   Released:  May 8, 1996

By the Chief, Wireless Telecommunications Bureau:


     1.  DW Communications, Inc. (DWCI) and Spectrum Resources,
Inc. (SRI), two winning bidders for MTA licenses in the 900 MHz
Specialized Mobile Radio (SMR) service, have filed requests for
waivers of Rule 90.814(d), which requires gross revenues reported in
exhibits to SMR applications to be evidenced by audited financial
statements.  The parties argue that they have previously certified to the
accuracy of the gross revenue figures reported as part of their short
form application (Form 175) to the Commission, and that the
additional requirement for audited financial statements to be submitted
with the filing of the long form application (Form 600) is unduly
burdensome.  Pursuant to delegated authority, we grant the waivers
and on our own motion extend this waiver to all 900 MHz SMR
applicants subject to the requirement of Section 90.814(d).

      2.  Section 90.815(b) of the Commission's rules provides that each
900 MHz SMR auction winner submitting a long form application and
qualifying as a small business, shall in an exhibit:  
            
            (1) Disclose separately and in the aggregate the gross
            revenues, computed in accordance with  90.814, for each of
            the following: the applicant; the applicant's affiliates, the
            applicant's attributable investors, affiliates of its attributable
            investors, and, if a consortium of small businesses, the
            members of the joint venture;
      
Section 90.814(d) requires revenues to be evidenced by audited
financial statements under most circumstances:
            
            (d) Gross Revenues.  For applications filed after December 31,
            1994, gross revenues shall be evidenced by audited financial
            statements for the preceding relevant number of calendar or
            fiscal years.  If an entity was not in existence for all or part
            of the relevant period, gross revenues shall be evidenced by
            the audited financial statements of the entity's predecessor-
            in-interest or, if there is no identifiable predecessor-in-
            interest, unaudited financial statements certified by the
            applicant as accurate.

      3.  Although the rules do not require applicants to file audited
financial statements with their long-form applications, they do require
gross revenues and total assets reported on the application to be
supported by audited financial statements obtained by the applicant. 
DWCI and SRI contend that for small businesses and start-up
companies with limited resources, obtaining audited financial
statements would cause an extreme financial hardship.  
      4.  We agree that requiring 900 MHz SMR applicants with limited
resources to obtain audited financial statements solely for the purpose
of supporting the long form applications is excessively burdensome. 
Consequently, we waive the audited financial statements requirement
of Section 90.814(d).  With respect to the filing of long form
applications, we believe that this waiver will enable the Commission to
continue to obtain timely financial data while providing applicants
with some degree of flexibility in their financial reporting practices.  We
emphasize, however, that applicants and their affiliates shall continue
to be required to certify as accurate all gross revenue and total asset
figures submitted.  We also reserve the right to require licensees to
provide audited financial statements as required by Section 90.814(d)
at a later date.  

      6.  This Order is not subject to the general notice and comment
requirement of the Administrative Procedure Act, because it concerns a
procedural rule, and we are relieving applicants of an administrative
burden as opposed to imposing a reporting burden on them.  In
addition, good cause for the waiver is shown.  The waiver will also
expedite the Commission's ability to process 900 MHz SMR
applications, thus expediting the delivery of service to the public. 

      7.  Accordingly, IT IS ORDERED that the requirement of Section
90.814(d), 47 C.F.R.  90.814(d), IS WAIVED to the extent described here
with respect to long-form applications (FCC Form 600) for 900 MHz
SMR applicants.

                        FEDERAL COMMUNICATIONS COMMISSION



                        Michele C. Farquhar
                        Chief, Wireless Telecommunications Bureau