Report No. CC-581     COMMON CARRIER ACTION        July 14, 1994

          MTEL GRANTED FIRST COMMERCIAL NARROWBAND PCS LICENSE

     The Commission has awarded the first commercial Personal
Communications Service (PCS) license to Nationwide Wireless
Network Corp., a wholly-owned subsidiary of Mobile
Telecommunication Technologies Corporation (Mtel).
     
      The Commission said narrowband PCS will contribute to the
development of the national information infrastructure by
providing Americans with ubiquitous access to wireless data and
voice services.  It added that it expects its introduction will
result in the creation of new telecommunications services and
provide the basis for more effective U.S. competition in the
global telecommunications market.  The narrowband PCS auction to
be held by the Commission on July 25 will be the first-ever
auction of public spectrum.   

     In July 1992 the Commission tentatively granted to Mtel a
pioneer's preference for having developed and demonstrated the
feasibility of significant innovations that will permit the
delivery of existing and new advanced paging and messaging
service in a spectrum-efficient manner.  In June 1993, the
Commission granted a final pioneer's preference to Mtel for a 50
kHz unpaired nationwide narrowband PCS block.  In February 1994
this pioneer's preference was affirmed on reconsideration with
the imposition of a number of conditions. Under the Commission's
rules, the award of a pioneer's preference does not guarantee the
issuance of a license. Mtel was therefore invited to apply for a
license on February 3, 1994. 

     The Commission has now conditioned the grant to Mtel of a
license for a single, nationwide, 50 kHz unpaired block upon Mtel
meeting a higher build-out requirement than it imposed on
narrowband licensees who obtain their licenses through the
auction, upon building a system that substantially uses the
design and technologies upon which that award is based, and upon
Mtel's holding the license for a minimum of three years or until
the construction requirement applicable to the five year build-
out period has been satisfied, whichever occurs first.   The
build-out requirement imposed requires that Mtel cover 90 percent
of the population at the 10-year mark, rather than 75 percent
coverage at the 10-year mark for narrowband PCS licensees who
obtain their licenses at auction.
 
                           (over)

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     Because of Mtel's previously affirmed "pioneer" status, and
because the Commission also imposed stricter build-out
requirements on Mtel than on narrowband PCS licensees who will
acquire their licenses through the auction process, the
Commission has granted Mtel a nationwide narrowband PCS license,
and has reduced the cost to Mtel of that license.  Specifically,
Mtel will be required to pay only the lesser of (a) 90 percent of
the lowest winning bid at auction for a nationwide narrowband PCS
license or (b) three million dollars ($3,000,000) less than the
lowest winning bid at auction for a nationwide narrowband PCS
license.  

     Action by the Commission July 13, 1994 by Memorandum Opinion
and Order (FCC 94-187).  Chairman Hundt, Commissioners Barrett
and Ness with Commissioner Quello concurring in the result and
Comissioner Chong not participating.  Commissioner Quello is
issuing a separate statement at a later time and Commissioner
Ness has issued a statement which is attached. 

                            - FCC -

     News Media contact: Rosemary Kimball at (202) 418-0500.
     Common Carrier Bureau contact: Sally J. Novak at (202) 418-
1300.