FOR IMMEDIATE RELEASE:                  News Media Contact:
June 22, 2000                                Meribeth McCarrick at (202) 418-0654
                                        e-mail: mmccarri@fcc.gov 

  FCC AFFIRMS RULES FOR THE 700 MHZ BAND AND CONSIDERS POSSIBLE
     VOLUNTARY MEASURES TO FACILITATE  SPECTRUM CLEARING AND
                    ACCELERATE DTV TRANSITION

       Washington, DC   The Federal Communications Commission has generally affirmed its service
rules for the 747-762 MHz and 777-792 MHz spectrum auction scheduled for September 6, 2000. The FCC
also provided guidance on various voluntary measures to help facilitate the transition of this spectrum from
broadcast to wireless use and the DTV transition of stations operating in this spectrum.  Finally, the FCC
sought comment on additional measures including possible three-way voluntary arrangements; and spectrum
sharing. By taking these steps, the Commission seeks to promote the broadest possible use of this spectrum,
consistent with sound spectrum management and the Congressional mandate to auction this spectrum quickly.
Auctioned spectrum can be used for a variety of wireless services, including fixed and mobile Internet access.
       On January 6, 2000, the FCC adopted the 700 MHz First Report and Order (First Report),
establishing service rules for the commercial use of the 747-762 MHz and 777-792 MHz spectrum bands.  In
developing these rules, the Commission was guided by conclusions in its November 18, 1999, Spectrum
Reallocation Policy Statement that a flexible, market-based approach is the most appropriate method for
establishing service rules for this band. 
Specifics of Today's Action:
       In the adopted Memorandum Opinion and Order (Memorandum) and Further Notice of Proposed
Rulemaking (Further Notice), the FCC generally affirms the service rules adopted in the First Report. The
Memorandum addresses thirteen petitions for reconsideration seeking changes in service rules and auction
procedures adopted in the First Report.  Consistent with the spectrum management policies described in the
Commission's Spectrum Reallocation Policy Statement, and applied in the First Report, the FCC affirms the
paired spectrum band plan and out-of-band emission limits, but revises certain of its technical rules to
establish a more flexible regulatory scheme which will better allow a broader range of wireless technologies in
the bands.  The FCC anticipates that these revisions will expand participation in the auction, and increase the
potential for new technologies and new service providers to use this spectrum intensively and efficiently to
offer innovative wireless services.  
       Specifically, the FCC takes the following actions:
     h    Permits base and mobile transmissions in both the lower and upper 700 MHz bands, thereby enabling
     Time Division Duplex (TDD) technologies to be employed in these bands. 
     h    Affirms its decision in the First Report that this band's service rules should be oriented to further
     intensive and efficient commercial wireless use, including certain types of broadcast-type services that
     can satisfy the technical rules necessary for efficient overall use of spectrum. 
          h    Affirms its original finding that voluntary band clearing agreements between 700 MHz licensees and
     TV incumbents would generally advance the public interest.  More specifically, the FCC provides
     guidance regarding its treatment of regulatory requests needed to implement such voluntary
     arrangement, in an effort to provide greater certainty to potential bidders and incumbent broadcasters.
     These agreements should facilitate both the provision of advanced wireless services, such as
     broadband Internet access, and the transition to DTV by incumbent broadcast stations operating on
     channels 59-69.  This guidance includes a rebuttable presumption that, under specified circumstances,
     these voluntary arrangements are in the public interest.  The guidance also clarifies that cable systems
     are ultimately obligated to accord "must carry" rights to local broadcasters' digital signals. 
     h    Tentatively concludes that cost-sharing arrangements should be left to negotiations between successful
     auction bidders, but seeks comment on such issues as: Would cost-sharing rules be useful or necessary
     to assist in clearing the 700 MHz band?  If cost-sharing rules are adopted, how should the FCC
     calculate the costs that benefiting 700 MHz licensees would be required to pay? 
     h    Seeks comment on additional mechanisms to promote voluntary clearing of the 700 MHz band and
     accelerate the transition to DTV. Specifically the item seeks comment on possible three-way voluntary
     relocation agreements involving new 700 MHz licensees, incumbent broadcasters in channels 59-69,
     and broadcasters with operations on lower channels. 
     h    Seeks comment on whether "secondary auctions" would help incumbent broadcasters and 700 MHz
     licensees reach mutually beneficial arrangements to help clear the spectrum and facilitate the transition
     to DTV.  In these auctions, broadcasters operating on channels 59-69 would agree to clear the band in
     return for an amount of compensation that would be determined by the auction. 
     h    Seeks comment on whether additional proposals should be considered to accelerate the DTV
     transition.  The FCC seeks comment on whether it should allow incumbent broadcasters on channels
     59-69 and new 700 MHz service providers to share spectrum in time and/or in bits.  Similarly, should
     broadcasters be allowed to share DTV facilities and spectrum during the DTV transition?
Action by the Commission on June 22, 2000 by Memorandum Opinion and Order and Further Notice of
Proposed Rulemaking (FCC 00-224). Chairman Kennard, Commissioners and Ness and Powell with
Commissioners Furchtgott-Roth and Tristani approving in part and dissenting in part and Commissioners
Ness, Furchtgott-Roth and Tristani issuing a separate statements.
Wireless Bureau Contacts: (MO&O) Stan Wiggins at (202) 418-1308, e-mail: swiggins@fcc.gov; or Marty
Liebman at (202) 418-0663, e-mail mliebman@fcc.gov; (FNPRM) Joel Rabinovitz at (202) 418-0689, 
e-mail: jrabinov@fcc.gov; TTY at (202) 418-7233.

Mass Media Bureau Contact: Barbara Kreisman at (202) 418-1600, e-mail: bkreisma@fcc.gov.

Cable Services Bureau Contact: Eloise Gore at (202) 418- 7200, e-mail: egore@fcc.gov; 
TTY at (202) 418-7172

WT Docket No. 99-168
CS Docket No. 98-120
MM Docket No. 00-39