FOR IMMEDIATE RELEASE: News Media Contact: November 10, 1999 Meribeth McCarrick (202) 418-0654 e-mail: mmccarri@fcc.gov FCC FACILITATES WIRELESS BROADBAND DEPLOYMENT Proposes Rules for Future Auction of Fixed Wireless Licenses Washington, DC -- The Federal Communications Commission (FCC) has proposed licensing and service rules to govern operations in the 24 GHz spectrum band. This is the first step toward a future auction of wireless licenses to be used for a variety of services, including broadband and wireless local loop type services. Specifically the FCC proposed the following: v Future as well as relocated 24 GHz band licensees will be subject to Part 101 of the FCC's rules. vi In compliance with the Balanced Budget Act of 1997, the FCC will apply competitive bidding procedures (auctions) for licensing in the 24 GHz band. Businesses that qualify as small businesses and very small businesses will receive bidding credits of 15% and 25%, respectively, to lower the cost of the winning bid. vii To promote economic opportunities for a wide variety of applicants, including rural telephone companies, the FCC, in further compliance with the Balanced Budget Act, is seeking comment on whether there are specific measures which might assist these entities. v The initial license will be for a ten-year period, with a requirement that the licensee provide substantial service to its service area within ten years. As an alternative, the FCC seeks comment on whether a license term in excess of ten years is more appropriate for this service. The FCC also seeks comment on whether it would be more appropriate to adopt, in lieu of a substantial service requirement, a construction requirement that the licensee transmit to reach one-third of the population in their licensed area within five years of being licensed and two-thirds of the population within ten years of being licensed. vi There will be open eligibility for 24 GHz licenses. The FCC also seeks comment generally on whether it should exercise its forbearance authority under Section 10 of the Communications Act. Action by the Commission on November 4, 1999 by Notice of Proposed Rulemaking (FCC 99- 333). Chairman Kennard, Commissioners Ness, Furchtgott-Roth, Powell and Tristani. Wireless Bureau Contact: Howard Davenport at (202) 418-0660, TTY at (202) 418-7233 or e-mail: hdavenpo@fcc.gov, WT Docket No. 99 327, WT Report No. 99-31