WPC$ 2BJZ Courier3|f'x6X@KX@HP LaserJet 4 PostScript RM 8010HPLA4POS.PRSx  @hhhh"\{X@26 ZFv3|f'HP LaserJet 4 PostScript RM 8010HPLA4POS.PRSC\  P6Qhhhh"\{P S- I. A. 1. a.(1)(a) i) a) 1. 1. 1. a.(1)(a) i) a)#&J\  P6Qx&P#a8DocumentgDocument Style StyleXX` `  ` 2p/kk ua4DocumentgDocument Style Style . a6DocumentgDocument Style Style GX  a5DocumentgDocument Style Style }X(# a2DocumentgDocument Style Style<o   ?  A.  2svLt6 a7DocumentgDocument Style StyleyXX` ` (#` BibliogrphyBibliography:X (# a1Right ParRight-Aligned Paragraph Numbers:`S@ I.  X(# a2Right ParRight-Aligned Paragraph Numbers C @` A. ` ` (#` 2l  L   a3DocumentgDocument Style Style B b  ?  1.  a3Right ParRight-Aligned Paragraph Numbers L! ` ` @P 1. ` `  (# a4Right ParRight-Aligned Paragraph Numbers Uj` `  @ a. ` (# a5Right ParRight-Aligned Paragraph Numbers _o` `  @h(1)  hh#(#h 2 f 6  a6Right ParRight-Aligned Paragraph Numbersh` `  hh#@$(a) hh#((# a7Right ParRight-Aligned Paragraph NumberspfJ` `  hh#(@*i) (h-(# a8Right ParRight-Aligned Paragraph NumbersyW"3!` `  hh#(-@p/a) -pp2(#p Tech InitInitialize Technical Style. k I. A. 1. a.(1)(a) i) a) 1 .1 .1 .1 .1 .1 .1 .1 Technical2Aa1DocumentgDocument Style Style\s0  zN8F I. ׃  a5TechnicalTechnical Document Style)WD (1) . a6TechnicalTechnical Document Style)D (a) . a2TechnicalTechnical Document Style<6  ?  A.   2La3TechnicalTechnical Document Style9Wg  2  1.   a4TechnicalTechnical Document Style8bv{ 2  a.   a1TechnicalTechnical Document StyleF!<  ?  I.   a7TechnicalTechnical Document Style(@D i) . 23Lea8TechnicalTechnical Document Style(D a) . Doc InitInitialize Document Stylez   0*0*0*  I. A. 1. a.(1)(a) i) a) I. 1. A. a.(1)(a) i) a)DocumentgPleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:`;?~;@iq=A^>reference>;#FxX  Pg9CXP#itemizeX1?&V 8F ` hp xr#FxX  Pg9CXP#header2@I ` hp x`    #FxX  Pg9CXP# heading 3AF` hp x #FxX  Pg9CXP# 2/CBOj@CrAD+BErBfooter!B!!#d\  PCP#a2AgendaCa1AgendaAgenda ItemsD7D yP ) I. a3AgendaE2EFaCGDHDIdIEHeadingChapter HeadingFJ d  ) I. ׃  Right ParRight-Aligned Paragraph NumbersG>a݅@  I.   X(# SubheadingSubheadingH0\ E A.  HIGHLIGHT 1Italics and BoldldeddI+. 2IJEKFL1GM1HDRAFT ONHeader A Text = DRAFT and DateJ X =8` (#FDRAFTă r  ` (#=D3 1, 43 12pt (Z)(PC-8))T2Dă  ӟDRAFT OFFTurn Draft Style offK@@    LETTER LANDLetter Landscape - 11 x 8.5L 3'3'Standard'3'3StandardLetter Portrait - 8.5 x 11 ;   LEGAL LANDLegal Landscape - 14 x 8.5Mf 3'3'Standard'A'AStandardZ K e6VE L"nu;   2qMN1 JO1QKPnLQLLETTER PORTLetter Portrait - 8.5 x 11NL 3'3'Standard3'3'StandardZ K e6VE L"nU9   LEGAL PORTLegal Portrait - 8.5 x 14O 3'3'StandardA'A'StandardLetter Portrait - 8.5 x 119   TITLETitle of a DocumentPK\ * ăBLOCK QUOTESmall, single-spaced, indentedQN X 2QRdMSjNTqNUEPHIGHLIGHT 2Large and Bold LargeRB*d. HIGHLIGHT 3Large, Italicized and UnderscoredS V -qLETTERHEADLetterhead - date/marginsTu H XX  3'3'LetterheadZ K e VE L"n3'3'LetterheadZ K e VE L"nE9    * 3'3'LetterheadZ K e VE L"n3' II"n"Tv3'StandarddZ K e VE L"nU9 Ѓ   INVOICE FEETFee Amount for Math InvoiceU ,, $0$0  2EWV-RW84SX8lTYUMEMORANDUMMemo Page FormatVD.   ! M E M O R A N D U M ă r  y<N dddy   INVOICE EXPSEExpense Subtotals for Math InvoiceW:A ,p, $0$00INVOICE TOTTotals Invoice for Math MacroXz 4p, $0$00INVOICE HEADRHeading Portion of Math InvoiceY+C`*   4X 99L$0 **(  ӧ XX 2XZXwW[[W\[*X][XNORMALReturn to Normal TypestyleZSMALLSmall Typestyle[FINEFine Typestyle\LARGELarge Typestyle]2[^[Y_[mY`YaXK[EXTRA LARGEExtra Large Typestyle^VERY LARGEVery Large Typestyle_ENVELOPEStandard Business Envelope with Header`+w ,,EnvelopeZ K e VE L"n,,EnvelopeLarge, Italicized and Under;    ,, 88+  `   1adf2`cb[cu\d]elaStyle 14Swiss 8 Pt Without Marginsb$$D Co> PfQ  )a [ PfQO Style 12Dutch Italics 11.5c$$F )^ `> XifQ  )a [ PfQO Style 11Initial Codes for Advanced IIdJ )a [ PfQK  dddn  #  [ X` hp x (#%'b, oT9 ! )^ `> XifQ ` Advanced Legal WordPerfect II Learning Guide   x )^ `> XifQ Advanced Legal WordPerfect II Learning Guide   j-n )^ `> XifQ    Copyright  Portola Systems, Inc. 1987, 1988`6 >Page  jBX )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 Style 3oDutch Roman 11.5 with Margins/Tabse )a [ PfQO  ddn  # c0*b, oT9 !2efcg.dh|di6eStyle 4 PSwiss 8 Point with MarginsfDq Co> PfQ  dddd  #  Style 1.5Dutch Roman 11.5 Fontg4h )a [ PfQO  dddn Style 2Dutch Italic 11.5h$ )^ `> XifQ Style 5Dutch Bold 18 Pointi$RH$L T~> pfQ_  )a [ PfQO 2VqjfkflHgmOlStyle 7Swiss 11.5j$$V )ao> PfQ ]  )a [ PfQO Style 6Dutch Roman 14 Pointk$$N w [ PfQ   )a [ PfQO Style 10oInitial Codes for Advancedl U )a [ PfQK  dddn  ##  [[ b, oT9 !b, oT9 !n )^ `> XifQ ` Advanced Legal WordPerfect Learning Guide   f )^ `> XifQ Advanced Legal WordPerfect Learning Guide   Q" )^ `> XifQ    Copyright  Portola Systems, Inc. 1987, 1988`6 >Page  QN~ )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 Style 8PfInitial Codes for Beginninggmi )a [ PfQK  dddn  # X` hp x (#%'b, oT9  [ &e )^ `> XifQ ` Beginning Legal WordPerfect Learning Guide   d )^ `> XifQ Beginning Legal WordPerfect Learning Guide   jH )^ `> XifQ    Copyright  Portola Systems, Inc. 1987, 1988`6 >Page  j )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 2|nqovpp{qq|Style 9Initial Codes for Intermediaten )a [ PfQK  dddn  # X` hp x (#%'b, oT9 Њ [ e )^ `> XifQ ` Intermediate Legal WordPerfect Learning Guide   3 )^ `> XifQ Intermediate Legal WordPerfect Learning Guide   jf )^ `> XifQ    Copyright  Portola Systems, Inc.`+ >Page  jX )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 UpdateInitial Codes for Update Moduleo )a [ PfQK  dddn  #  [ X` hp x (#%'b, oT9 !n )^ `> XifQ ` Legal WordPerfect 5.0 Update Class Learning Guide   f )^ `> XifQ Legal WordPerfect 5.0 Update Class Learning Guide   Q" )^ `> XifQ    Copyright  Portola Systems, Inc. 1987, 1988`7 CPage  jN~ )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 2*Ç.7=G@6FDocument Style=('87=FG*'Ç.7=.Ep56` ` ` 3*Ç.7=H@6FDocument Style=('87=FH*'Ç.7=.Eq7 8 . 2~re|se}t}up~4*Ç.7=I@6FDocument Style=('87=FI*'Ç.7=.Er 9: 5*Ç.7=J@6FDocument Style=('87=FJ*'Ç.7=.Es ;< 6*Ç.7=K@6FDocument Style=('87=FK*'Ç.7=.Et*=>   7*Ç.7=L@6FDocument Style=('87=FL*'Ç.7=.Eu?@` ` ` 2v~wGxyw8*Ç.7=M@6FRight-Aligned Paragraph Numbers*'Ç.7=.Ev8AB@   9*Ç.7=N@6FRight-Aligned Paragraph Numbers*'Ç.7=.EwACD@` `  ` ` ` 10Ç.7=O@6FDocument Style=('87=FO*'Ç.7=.Ex0E F    11Ç.7=P@6FRight-Aligned Paragraph Numbers*'Ç.7=.EyJGH` ` @  ` `  27zM{|}o12Ç.7=Q@6FRight-Aligned Paragraph Numbers*'Ç.7=.EzSIJ` `  @  13Ç.7=R@6FRight-Aligned Paragraph Numbers*'Ç.7=.E{\KL` `  @hh# hhh 14Ç.7=S@6FRight-Aligned Paragraph Numbers*'Ç.7=.E|eMN` `  hh#@( hh# 15Ç.7=T@6FRight-Aligned Paragraph Numbers*'Ç.7=.E}nOP` `  hh#(@- ( 2~i:y16Ç.7=U@6FRight-Aligned Paragraph Numbers*'Ç.7=.E~wQR` `  hh#(-@pp2 -ppp 17Ç.7=V@6FDocument Style=('87=FV*'Ç.7=.EFST *  ׃  18Ç.7=W@6FTechnical Document Style7=FW*'Ç.7=.E&UV  . 19Ç.7=X@6FTechnical Document Style7=FX*'Ç.7=.E&WX  . 20̇a20Ç.7=Y@6FTechnical Document Style7=FY*'Ç.7=.E*YZ    21Ç.7=Z@6FTechnical Document Style7=FZ*'Ç.7=.E'[\   22Ç.7=[@6FTechnical Document Style7=F[*'Ç.7=.E&]^   23Ç.7=\@6FTechnical Document Style7=F\*'Ç.7=.E4_$`     2H׉\24Ç.7=]@6FTechnical Document Style7=F]*'Ç.7=.E&ab  . 25Ç.7=^@6FTechnical Document Style7=F^*'Ç.7=.E&cd  . Format Downl@6FFormat Downloaded Document=Fc*'Ç.7=.EUgh XX    X\ #d6X@7@#Word222Null@6FWord222Null_' =('87=Fp*'Ç.7=.E1{1|#/x PX##/x PX#2z 'HEADING 7t@6FJ>_' =('87=Ft*'Ç.7=.E0p Zwp x (#DDDDDD#&n P&P# 4 hp x (##&n P&P# HEADING 6v@6Ff>_' =('87=Fv*'Ç.7=.E0p Zwp x (#DDDDDD#&n P&P# 4 hp x (##&n P&P# HEADING 5w@6F>_' =('87=Fw*'Ç.7=.E0p Zwp x (#DDDDDD#&n P&P# 4 hp x (##&n P&P# HEADING 4x@6F>_' =('87=Fx*'Ç.7=.E0 Zwp x (#rr#&n P&P# 4 hp x (##&n P&P# 2KwNORMAL INDEN@6F>_' =('87=Fy*'Ç.7=.E'4 <DL!T$#&n P&P##&n P&P#enumlev1=z@6F>_' =('87=Fz*'Ç.7=.E$p  N hp x (#aa#&n P&P#4` hp x (##&n P &P#footnote ref@6Ffootnote reference'87=F{*'Ç.7=.ER#V\  P!UP#Default Para@6FDefault Paragraph Font87=F}*'Ç.7=.E((2c}ѝgpage number@6Fpage number_' =('87=F~*'Ç.7=.E226Ç.7=@6Ffootnote text =('87=F*'Ç.7=.E>4??USlist.7=@6Flist >_' =('87=F*'Ç.7=.E>??endnote refe@6Fendnote reference'87=F*'Ç.7=.ERR#Xj\  P"G;XP##c P#7P#2}1סline number@6Fline number_' =('87=F*'Ç.7=.EOO#Xj\  P$G;XP##c P%7P#Highlight@6FMiddle Article Highlight7=F*'Ç.7=.E''#G }&Y##\9> (P'YP#Headline=@6FHeadline for newsletter87=F*'Ç.7=.E''#> }(Y##\9> (P)YP#2nd line Hea@6F2nd line headline'87=F*'Ç.7=.E''#b> }*Y##\9> (P+YP#2[Graphics hea@6FHeadlines for graphics87=F*'Ç.7=.E** #o> P},YP##\9> (P-YP# Graphics bod@6Fchart data _' =('87=F*'Ç.7=.E** #Alo> P}.YXP##\9> (P/YP# Article head@6FHeadline for new article7=F*'Ç.7=.E*'#r"z0C# #\9> (P1YP# endnote text@6Fendnote text' =('87=F*'Ç.7=.EYO#X}xP27XP##I2P3QP#2MZZ?ZZtoc 17=@6Ftoc 1>_' =('87=F*'Ç.7=.E(#`` hp x (#toc 27=@6Ftoc 2>_' =('87=F*'Ç.7=.E` (#`` hp x (#toc 37=@6Ftoc 3>_' =('87=F*'Ç.7=.E` (#` hp x (#toc 47=@6Ftoc 4>_' =('87=F*'Ç.7=.E (#` hp x (#2?ZZٱ3Ztoc 57=@6Ftoc 5>_' =('87=F*'Ç.7=.Eh(#` hp x (#toc 67=@6Ftoc 6>_' =('87=F*'Ç.7=.E(# ` hp x (#toc 77=@6Ftoc 7>_' =('87=F*'Ç.7=.E2(toc 87=@6Ftoc 8>_' =('87=F*'Ç.7=.E(# ` hp x (#2ZqZ˹Z%Ztoc 97=@6Ftoc 9>_' =('87=F*'Ç.7=.E(#`` hp x (#index 17=@6Findex 1>_' =('87=F*'Ç.7=.E` (#` hp x (#index 27=@6Findex 2>_' =('87=F*'Ç.7=.E` (#`` hp x (#toa heading@6Ftoa heading_' =('87=F*'Ç.7=.E(#` hp x (#2  FGcaption7=@6Fcaption>_' =('87=F*'Ç.7=.EYO#X}xP47XP##I2P5QP#_Equation Ca@6F_Equation Caption'87=F*'Ç.7=.EOO#X}xP67XP##I2P7QP#27Ç.7=@6FDefault Paragraph Font87=F*'Ç.7=.Eww#X}xP87XP##&sxP97&P#HEADING 9@6F >_' =('87=F*'Ç.7=.E'34 <DL!T$#c P:7P##c P;7P#2#+pqMeHEADING 8@6F >_' =('87=F*'Ç.7=.E'34 <DL!T$#c P<7P##c P=7P#28Ç.7=@6FDocument Style=('87=F*'Ç.7=.E` ` ` 29Ç.7=@6FDocument Style=('87=F*'Ç.7=.E  . 30Ç.7=@6FDocument Style=('87=F*'Ç.7=.E  2OeUpM31Ç.7=@6FDocument Style=('87=F*'Ç.7=.E  32Ç.7=@6FDocument Style=('87=F*'Ç.7=.E*   33Ç.7=@6FDocument Style=('87=F*'Ç.7=.E` ` ` 34Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.E8@   2U35Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.EA@` `  ` ` ` 36Ç.7=@6FDocument Style=('87=F*'Ç.7=.E0    37Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.EJ` ` @  ` `  38Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.ES` `  @  2B4q39Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.E\` `  @hh# hhh 40Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.Ee` `  hh#@( hh# 41Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.En` `  hh#(@- ( 42Ç.7=@6FRight-Aligned Paragraph Numbers*'Ç.7=.Ew` `  hh#(-@pp2 -ppp 2t.843Ç.7=@6FDocument Style=('87=F*'Ç.7=.EF *  ׃  44Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E&  . 45Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E&  . 46Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E*    2d/47Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E'   48Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E&   49Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E4$     50Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E&  . 2K51Ç.7=@6FTechnical Document Style7=F*'Ç.7=.E&  . 52Ç.7=@6F: >_' =('87=F*'Ç.7=.E'4 <DL!T$#&n P>&P##&n P?&P#53Ç.7=@6Ffootnote reference'87=F*'Ç.7=.E>#V\  P@UP#54Ç.7=@6FDefault Paragraph Font87=F*'Ç.7=.E2sA55Ç.7=@6Ffootnote text =('87=F*'Ç.7=.E* ??US56Ç.7=@6Fendnote reference'87=F*'Ç.7=.E>>#Xj\  PAG;XP##B\  PBUP#57Ç.7=@6F_Equation Caption'87=F*'Ç.7=.E;;#XX2PCQXP##I2PDQP#58Ç.7=@6FFormat Downloaded Document=F*'Ç.7=.EUOP XX    #\ #d6X@7@#2d qqqfBld/Und7=@6FBold and Underline Text87=F*'Ç.7=.EQR  a4Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'YZa5Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'[\a6Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*']^2q qz}ha7Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'_`a8Agenda.E+'*Ç.Agenda Items=('87=FGD!*'7=*'aba1Paragraph+'*Ç.1. a. i. (1) (a) (i) 1) a)' =('87=F*'$cd a2Paragraph+'*Ç.1. a. i. (1) (a) (i) 1) a)' =('87=F*'/ef 2"Sa3Paragraph+'*Ç.1. a. i. (1) (a) (i) 1) a)' =('87=F*':gh a4Paragraph+'*Ç.1. a. i. (1) (a) (i) 1) a)' =('87=F*'Eij a5Paragraph+'*Ç.1. a. i. (1) (a) (i) 1) a)' =('87=F*'Pkl a6Paragraph+'*Ç.1. a. i. (1) (a) (i) 1) a)' =('87=F*'[mn 2ka7Paragraph+'*Ç.1. a. i. (1) (a) (i) 1) a)' =('87=F*'fop a8Paragraph+'*Ç.1. a. i. (1) (a) (i) 1) a)' =('87=F*'qqr a159.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'8st@   a259.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'Auv@` `  ` ` ` 2na359.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'Jwx` ` @  ` `  a459.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'Syz` `  @  a559.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'\{|` `  @hh# hhh a659.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'e}~` `  hh#@( hh# 2[a759.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'n` `  hh#(@- ( a859.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'w` `  hh#(-@pp2 -ppp a160.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'8@   a260.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'A@` `  ` ` ` 2^ a360.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'J` ` @  ` `  a460.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'S` `  @  a560.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'\` `  @hh# hhh a660.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'e` `  hh#@( hh# 2zzKa760.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'n` `  hh#(@- ( a860.E+'*Ç.Right-Aligned Paragraph Numbers'87=F*'w` `  hh#(-@pp2 -ppp a129f—+b—!tRight-Aligned Paragraph NumberswH(RK+P8@   a229f—+b—!tRight-Aligned Paragraph NumberswH(RK+PA@` `  ` ` ` 2mQa329f—+b—!tRight-Aligned Paragraph NumberswH(RK+PJ` ` @  ` `  a429f—+b—!tRa529f—+b—!tRight-Aligned Paragraph NumberswH(RK+P\` `  @hh# hhh 2_(a629f—+b—!tRight-Aligned Paragraph NumberswH(RK+Pe` `  hh#@( hh# a729f—+b—!tRight-Aligned Paragraph NumberswH(RK+Pn` `  hh#(@- ( a829f—+b—!tRight-Aligned Paragraph NumberswH(RK+Pw` `  hh#(-@pp2 -ppp NORMAL INDENT ' 4 <DL!T$#&n P&P##&n P&P#2 lRLfootnote referencefootnote reference4#V\  PUP#Default Paragraph FoDefault Paragraph Font footnote textfootnote text US????USendnote referenceendnote reference44#XO\  PUXP##B\  PUP#2>g__Equation Caption_Equation Caption11#XX2PQXP##I2PQP#FM7V,,6%TriangleoF4=(g4O7V ,*g4çFM7VE/0a11I.E+')*'0Right-Aligned Paragraph Numbers')8?I u*')8ij@   a21I.E+')*'0Right-Aligned Paragraph Numbers')8?I u*')Akl@` `  ` ` ` 2BHbLLa31I.E+')*'0Right-Aligned Paragraph Numbers')8?I u*')Jmn` ` @  ` `  Times RomanTimes Roman BoldTimes Roman ItalicTimes Roman Bold Italic"S^*8DSS888S^*8*.SSSSSSSSSS..^^^Jxooxf]xx8Axfxx]xo]fxxxxf8.8NS8JSJSJ8SS..S.SSSS8A.SSxSSJP!PZ8*888888888888S.xJxJxJxJxJooJfJfJfJfJ8.8.8.8.xSxSxSxSxSxSxSxSxSxSxJxSxSxSxSxS]SxJxJoJoJoJoJxSfJfJfJfJxSxSxSxSxSxSxS8S8S888SA8xSf.f8f8f8f.xSxSxSxSxSxo8o8o8]A]A]A]Af8f8f8xSxSxSxSxxSfJfJN:*LS8JSSSSS.4}}S2S}2.JJS88SS]]8J2t^^\\^^ee*C^.wR)Ewn\1fy\r\Sxx\r"S^.=K\\===\g.=.3\\\\\\\\\\33gggQzzpf=Gpfzfpp=3=V\=Q\Q\Q=\\33\3\\\\=G3\\\\QX%Xc=.============\3QQQQQzzQpQpQpQpQ=3=3=3=3\\\\\\\\\\Q\\\\\f\QQzQzQzQzQ\pQpQpQpQ\\\\\\\=\=\===\G=\p3p=p=p=p3\\\\\z=z=z=fGfGfGfGp=p=p=\\\\\pQpQN@.S\=Q\\\\\39\7\7!3QQ\==\\ff=Q7tggeeggoo.Ig2[-Kye1pe~e\e~2 LtLL LX "S^.=f\\===\i.=.3\\\\\\\\\\==iii\zzpG\zpfzz=3=k\=\fQfQ=\f3=f3f\ffQG=f\\\QH(H_=.============f3\\\\\QzQzQzQzQG3G3G3G3f\\\\ffff\\f\\\\pf\\QQQQfzQzQzQzQ\\\\\ffGfGfG=Gf\=fz3z=z=z=z3fff\\QQQfGfGfGfGz=z=z=ffff\zQzQN@.c\=\\\\\\7=\7\733\\\==\\ff=\7tiieeiioo.Ii2[-Kye1pe~efe~"S^.=M\\===\|.=.3\\\\\\\\\\==|||\ppzpp=Qzfzpp\fppffG3GM\=\\Q\Q3\\33Q3\\\\GG3\QzQQGI2Ic=.============\3p\p\p\p\p\zzQpQpQpQpQ=3=3=3=3z\\\\\\\\\fQp\\\\fQ\p\p\p\zQzQzQzQ\pQpQpQpQ\\\\\\\=\=\===\Q=zQf3f=f=f=f3z\z\z\\\zpGpGpG\G\G\G\Gf=f=f=\\\\zfQfGfGN@.`\G\\\\\\39\7\7'3ff\==\\\\=f7t||ee||oo.I|2[-Kye1pe~e\e~"S^%-77\V%%%7>%7777777777>>>1eOIIOC=OO%+OCbOO=OI=COOhOOC%%47%17171%777V7777%+77O77155<%%%n%%%%%%%%%%7O1O1O1O1O1bII1C1C1C1C1%%%%O7O7O7O7O7O7O7O7O7O7O1O7O7O7O7O7=7O1O1I1I1I1I1O7C1C1C1C1O7O7O7O7O7O7O7%7%7%%%7+%O7CC%C%C%CO7O7O7O7O7bOI%I%I%=+=+=+=+C%C%C%O7O7O7O7hOO7C1C1N'27%177777"SS7!TT7S!117n%%77l==n%1ni!t>><<>>mBBs,>[N6-msTN[TTTH_<1CPd<d<$8YYdCCddooCYȾWashington, D.C. 20554 ă  S4-In the Matter of#&J\  P6Qx&P#) )  S-Amendment of the Commission's Rules)PR Docket No. 92257  S-Concerning Maritime Communications)RM7956, 8031, 8352  S-  THIRD REPORT AND ORDER AND  S-  MEMORANDUM OPINION AND ORDER \  S6 -X` hp x (#%'0*,.8135@8:and Order and Memorandum Opinion and Order, we address the petition for reconsideration of our  S- d(#decisions in the Second Report and Order filed by WJG MariTEL (MariTEL).4  yOt-ԍMariTEL Petition for Reconsideration (filed Aug. 14, 1997) (MariTEL Petition). We also adopt rules aimed  d(#[at streamlining our licensing process for VHF public coast stations. We conclude that the public interest  d(#would be served by providing licensees more flexibility in the use of maritime spectrum, while preserving  d(#Lthis internationallyallocated radio service's core purpose of promoting the safety of life and property at  d(#^sea. Moreover, we believe that these changes will (1) increase competition in the provision of  d(#telecommunications services; (2) increase the types of telecommunications services available to vessel  d(#operators; (3) promote more efficient use of maritime spectrum; (4) reduce regulatory and economic  d(#burdens on coast station licensees; and (5) allow maritime commercial mobile radio service (CMRS)  d(#providers to more quickly respond to market demand. The major rule changes we adopt today are summarized below.  Sp-  XX` ` We modify our rules to adopt a geographic area licensing approach for VHF public coast  stations. We designate nine licensing regions near major waterways (defined as maritime  VHF Public Coast areas (VPCs)), based roughly on U.S. Coast Guard Districts, and thirty" ,l(l(,,"ԫ S- 3three   inland licensing regions (defined as inland VPCs), based on Economic Areas. We  authorize a single licensee for all currently unassigned VHF public correspondence channels in each licensing region in lieu of the sitebased approach presently used.(#`  S4- XX` ` We permit the continued operation of incumbent VHF public coast station licensees and  3private land mobile radio (PLMR) licensees sharing maritime spectrum in inland areas.  Additionally, we require incumbents and geographic licensees to afford each other interference protection.(#`  S5- ` ` We adopt a substantial service construction requirement for VHF public coast station licenses and permit partitioning and disaggregation of those licenses. (#`  S -` ` We clarify the safety watch requirements of VHF public coast station licensees.(#`  S6 - }` ` We adopt competitive bidding procedures to resolve mutually exclusive initial applications  for VHF public coast station licenses, pursuant to Section309(j) of the Communications Act.(#`  Sj- 2.` ` Our decisions in this Third Report and Order and Memorandum Opinion and Order  d(#further our goal to improve maritime communications. In developing these new rules we are guided by  d(#several broad policy initiatives. First, we seek to establish a flexible regulatory framework that will (1)  d(#=provide opportunities for continued development of competitive new services using maritime spectrum,  d(#(2) expedite market entry through streamlined licensing procedures, (3) promote technological innovation,  d(#/and (4) eliminate unnecessary regulatory burdens. Second, we seek to enhance regulatory symmetry  d(#\between maritime CMRS providers and other CMRS providers to ensure that market forces, and not  d(#regulatory forces, shape the development of the CMRS marketplace. Finally, we take into account the  d(#unique nature of the Maritime Services. Specifically, we note that (1) the frequencies are allocated  d(#internationally to facilitate interoperability; (2) use of maritime spectrum is subject to various statutes,  d(#jtreaties, and agreements; and (3) the primary purpose of these services is to provide for the safety of life and property at sea.  S-L II. BACKGROUND    Sn- \3.` ` IIThe Maritime Services provide for the unique distress, operational, and personal  S;- d(#communications needs of vessels at sea and on inland waterways.;  {O- v ԍFor a fuller description of the Maritime Services and the history of this proceeding, see Second Further  {Om-Notice, 12 FCC Rcd at 1695356. Maritime frequencies are allocated  d(# internationally by the International Telecommunication Union (ITU) to facilitate interoperable radio  d(#communications among vessels of all nations and stations on land worldwide. Public coast stations, which  d(#are CMRS providers that allow ships at sea to send and receive messages and to interconnect with the  So-public switched network, use VHF band frequencies to serve a port or coastal area.^o$  {O3#- v ԍSee Implementation of Sections 3(n) and 332 of the Communications Act Regulatory Treatment of Mobile  {O#- d(#Services, Second Report and Order, GN Docket No. 93252, 9 FCC Rcd 1411, 1448 (1994) (CMRS Second Report  {O$-and Order); see also 47 C.F.R. 20.9.  S - 4.` ` In November 1992, the Commission released a Notice of Proposed Rule Making and  S - d(#Notice of Inquiry in this proceeding to examine the expanding communications needs of the maritime" J,l(l(,,'$"  S- d(#community.  {Oh- v >ԍAmendment of the Commission's Rules Concerning Maritime Communications, Notice of Proposed Rule  {O2-Making and Notice of Inquiry, PR Docket No. 92257, 7 FCC Rcd 7863 (1992) (Notice of Inquiry). Based on the comments received, it released a First Report and Order in May 1995,  S- d(#adopting rules that, inter alia, allowed the use of maritime VHF (156162 MHz) band public  d(#correspondence frequencies by eligible entities in the Industrial and Land Transportation (I/LT) Radio  Si- d(#Services~i$  yO-- v kԍPart 90 of the Commission's Rules subsequently was amended to consolidate the private land mobile radio  d(#y(PLMR) services into two service pools. Entities formerly eligible in any of the I/LT Radio Services are now  d(#included in the Industrial/Business Pool. 47 C.F.R.  90.283 was amended, however, to retain the eligibility  {O - d(#hrequirements originally governing the sharing of maritime frequencies by PLMR licensees. See Replacement of Part  d(#90 by Part 88 to Revise the Private Land Mobile Radio Services and Modify the Policies Governing Them and  {O - d(#hExamination of Exclusivity and Frequency Assignments Policies of the Private Land Mobile Service, Second Report  {O -and Order, PR Docket No. 92235, 12 FCC Rcd 14307 (1997) (Refarming Second Report and Order). away from navigable waterways. ij  {Os - v ԍAmendment of the Commission's Rules Concerning Maritime Communications, First Report and Order, PR Docket No. 92257, 10 FCC Rcd 8419, 842125, 8431 (1995). Additionally, the Commission released a Further Notice of  S7- d(#>Proposed Rule Making in response to commenters' requests for more flexible regulatory treatment of  S-public coast stations and enhancements in marine communications equipment.   {Oi- v ԍAmendment of the Commission's Rules Concerning Maritime Communications, Further Notice of Proposed  {O3-Rule Making, PR Docket No. 92257, 10 FCC Rcd 5725 (1995).  S- 5.` ` On June 26, 1997, the Commission released a Second Report and Order and Second  Sm- d(#Further Notice of Proposed Rule Making, in which it adopted rules to, inter alia, permit the automated  d(#operation of public coast stations, reduce congestion through intraservice frequency sharing and inter d(#service frequency sharing with PLMR licensees, and permit the use of innovative technologies (such as  S- d(#automatic link establishment and the expanded use of narrowband directprinting (NBDP) frequencies).e    {O-ԍSecond Further Notice, 12 FCC Rcd at 1695152.e  d(#/The Commission also proposed rules for geographic area licensing of VHF public coast stations, and  So - d(#{sought comment on various proposals including permitting partitioning o   yO- v kԍ"Partitioning" is the assignment of geographic portions of a geographic service area along geopolitical or other boundaries. and disaggregation o   yO-ԍ"Disaggregation" is the assignment of discrete portions of spectrum licensed to a geographic area licensee. of  d(#/geographic licenses, and allowing incumbent VHF public coast station licensees and PLMR licensees  S -sharing marine spectrum in inland regions to operate indefinitely.h   {OC!-ԍSecond Further Notice, 12 FCC Rcd at 16952.h In addition, it proposed competitive " ,,l(l(,,z "  S- d(#bidding rules for public coast stations.D  {Oh-ԍId. at 17011.D Seventeen comments and eight reply comments to the Second  S-Further Notice were received. Z  yO- v MԍA list of commenters is provided in Appendix A. On October 6, 1997, MariTEL filed Reply Comments,  {O- d(#-along with a Motion to Accept LateFiled Reply Comments. See MariTEL Motion to Accept LateFiled Reply  d(#Comments at 1. On February 26, 1998, MariTEL filed Supplemental Comments, along with a Motion to Accept  {O"- d(#=Supplemental Comments. See MariTEL Motion to Accept Supplemental Comments at 1. Since MariTEL's  {O- d(#additional comments could have been labeled as ex parte filings, we find no reason not to accept its Reply Comments and Supplemental Comments, and thus we grant MariTEL's motions.   Si- 6.` ` On August 5, 1997, shortly before the comment period for the Second Further Notice  S7- d(#closed, President Clinton signed into law the Balanced Budget Act of 1997 (Balanced Budget Act).7  yO -ԍBalanced Budget Act of 1997, Pub. L. No. 10533, 111 Stat. 251 (1997) (Balanced Budget Act).  d(#Section 309(j)(2) of the Communications Act formerly stated that mutually exclusive applications for  d(#initial licenses or construction permits were auctionable if the principal use of the spectrum was for  S- d(#Lsubscriberbased services, and competitive bidding would promote the expressed objectives of the Act.Xh  {O-ԍSee 47 U.S.C.  309(j) (1996).X  Sk- d(#We concluded under former Section 309(j)(2) that, because public coast stations are CMRS providers,gk  {O-ԍCMRS Second Report and Order, 9 FCC Rcd at 1448.g  S8- d(#[mutually exclusive initial applications were auctionable.^8  {Od- v ԍSee Implementation of Section 309(j) of the Communications Act Competitive Bidding, Second Report  {O.- d(#and Order, 9 FCC Rcd 2348, 235657, on reconsideration, Second Memorandum Opinion and Order, 9 FCC Rcd  {O-7245 (1994) (Competitive Bidding Second Report and Order). This conclusion is unchanged by the Balanced  d(#=Budget Act, which expanded the Commission's auction authority by amending Section 309(j) to provide  S- d(#that all mutually exclusive applications for initial licenses or construction permits shall be auctioned, with  S -certain limited exceptions.v   yO-ԍ47 U.S.C.  309(j) (as amended by Balanced Budget Act,  3002).v  S: - 7.` ` While our actions in this proceeding are designed to improve maritime  d(#telecommunications, applicants should be aware that an FCC auction represents an opportunity to become  d(#Lan FCC licensee in this service, subject to certain conditions and regulations. The FCC does not endorse  d(#any particular services, technologies, or products, and grant of an FCC license does not guarantee business  d(#success. Applicants should perform their individual due diligence before proceeding in an auction, as they would with any new business venture.  S-O III. DISCUSSION \  So-A.` ` VHF Public Coast Station Spectrum   S - 8.` ` There are only nine channel pairs in the 157.1875157.4500 MHz (ship transmit) and  d(#161.775162.0125 MHz (coast transmit) bands assignable to VHF public coast stations for public"B,l(l(,,C"  S- d(#.correspondence.J  yOh-ԍ47 C.F.R. 80.371(c).J Along the Canadian border, even fewer channel pairs are available for U.S. stations.\X  {O- v kԍSee 47 C.F.R.  80.57. In addition, VHF Channel 88 may be authorized within 120 kilometers (75 miles)  d(#-of the Canadian border on the Great Lakes, the St. Lawrence Seaway, and the Puget Sound and the Strait of Juan  {O-de Fuca and its approaches. See 47 C.F.R.  80.371(c).  d(#Currently, these channel pairs also are assignable to I/LT users in areas removed from public coast stations  S-and navigable waterways.J|  yO-ԍ47 C.F.R. 90.283(d).J  S4- 1.` ` Geographic area licensing   S-  9. IIIA1 III IIIA  IIIA1  IIIA1 III IIIA  IIIA1  NAMES  ` ` Proposal. Under our current rules, the service area for VHF public coast stations is  S- d(#.applicantdefined based on predicted signal strength over the waterway to be served.W   {OH-ԍSee 47 C.F.R. Part 80 Subpart P.W The size of each  d(#station's service area also determines the mileage separation between cochannel assignments. Using a  d(#conservative estimate, service areas for VHF band public coast stations extend 20 to 30 miles from the  d(#/transmitter. In order to establish a comprehensive and consistent regulatory approach that enhances  S- d(#ymaritime communications, in the Second Further Notice the Commission proposed a transition from site S -specific "service area"based licensing to licensing based on FCCdefined geographic areas.b   {O-ԍSecond Further Notice, 12 FCC Rcd at 16988.b  S8 -   10.` ` Decision. We conclude that the public interest will best be served by a transition to  d(#lgeographic area licensing for VHF public coast station spectrum. This approach will facilitate the  d(#development of widearea, multichannel automated maritime communications systems. It also will  d(#=promote regulatory symmetry between maritime licensees and other CMRS providers where geographic  d(#licensing has been introduced, consistent with the congressional directive set forth in the Omnibus Budget  S:- d(#Reconciliation Act of 1993.?:0  yO - v ԍOmnibus Budget Reconciliation Act of 1993, Pub. L. No. 10366, 6002(a)(2)(A), (B), 107 Stat. 312  {O-(largely codified at 47 U.S.C. 332 et seq.); see, e.g., Paging Second Report and Order, 12 FCC Rcd at 2737.? We disagree with Mobile Marine Radio, Inc. (MMR), an MF, HF, and VHF  d(#public coast station licensee, that our pursuit of this objective is futile due to the limited amount of  S- d(#available VHF public coast station spectrum.E  yO-ԍMMR Comments at 45.E We believe that CMRS licensees should be afforded  d(#>regulatory symmetry wherever feasible, regardless of the amount of spectrum designated for specific  Sn- d(#CMRS uses.^n  {O("- v ԍSee Implementation of Sections 3(n) and 332 of the Communications Act Regulatory Treatment of Mobile  {O"- d(#Services, Third Report and Order, GN Docket No. 93252, 9 FCC Rcd 7988, 800103 (1994), aff'd on other grounds  {O#-sub nom. Suncom Mobile & Data, Inc. v. FCC, 87 F.3d 1386 (D.C. Cir. 1996). In addition, we agree with MariTEL, a VHF public coast station licensee, that changing  d(#our current licensing approach in favor of geographic licensing will enable public coast station licensees  S- d(#to be more competitive with other CMRS providers and better serve the public.G@  yO&-ԍMariTEL Comments at 2.G Further, we disagree",l(l(,,b"  d(#with the contentions of MMR that geographic area licensing will undermine the essential purposes of the  S- d(#Maritime Services, so should be employed only in those areas where PLMR sharing is permitted.  {O5-ԍMMR Comments at 58; see also, e.g., Ross Comments at 8; Robert Sassaman Comments at 1. As  S- d(#Mwe indicated in the Second Further Notice, our goal in this proceeding is to improve maritime radio in  d(#jways that take into account the unique nature of the Maritime Services, including its primary purpose of  S5- d(#Lproviding for safety of life and property at sea.b 5Z  {O/-ԍSecond Further Notice, 12 FCC Rcd at 16956.b We believe that the geographic licensing approach will  d(#enhance maritime communications by expediting the assignment of the remaining channel pairs and facilitating development of automated coastal systems.  Si- a 11.` ` Moreover, we are not persuaded by the concerns of UTC, the Telecommunications  d(#Association (UTC), which represents utility and pipeline companies, and the Industrial  d(#Telecommunications Association and the Council of Independent Communications Suppliers (ITA/CICS),  d(#<which represent PLMR users, that geographic licensing will adversely affect PLMR incumbents' operations  S - d(#<and access to this spectrum.!   yO)-ԍUTC Comments at 34; ITA/CICS Comments at 45; ITA/CICS Reply Comments at 23. As discussed below, incumbents' operations will be protected under the new  d(#licensing approach. In addition, partitioning and disaggregation will be permitted, which will allow PLMR  d(#users to obtain spectrum through partitioning and disaggregation arrangements in areas beyond those in  S - d(#which Section 90.283 of our Rules currently allows them to be licensed.G" |  yO -ԍ47 C.F.R.  90.283.G Thus, this action will potentially increase their access to this spectrum.  Sk- 2.` ` Service areas   S- A 12.` ` Proposal. The Commission proposed in the Second Further Notice to divide the nation-  S-coastline and interior into nine regions, based on U.S. Coast Guard Districts,L#   {O-ԍSee 33 C.F.R. Part 3.L as listed below: O ddx !4ddx O  E Y " S-  Proposed Regions (Coast Guard District) EF  S]-Northern Atlantic (1st )+Y  S]-Gulf of Mexico (8th)FF  S-MidAtlantic (5th)qY  S-Northern Pacific (13th)FF+  S-Southern Atlantic (7th)Y  S-Southern Pacific (11th)FFq  S/-Great Lakes (9th)Y  S/-Alaska (17th)FF YY   Su-Hawaii (14th)#Xj\  P6G;XP#CY  Su-#f\  PCx&P#FY  d(#The Commission sought comment on whether U.S. Coast Guard Districts provide an appropriate basis for  d(#defining service areas for the VHF public coast service, and asked commenters to discuss alternative  S-service area definitions.b$ {O%-ԍSecond Further Notice, 12 FCC Rcd at 16989.b  SD-  13.` ` Decision. After reviewing the record in this proceeding and our initial proposals, we"D0 $,l(l(,,+ ^"  d(#=believe that the best service area definition for VHF public coast station spectrum deviates slightly from  d(#zour initial approach. We conclude that regions analogous to U.S. Coast Guard Districts should be the  d(#=licensing areas near major waterways, but not elsewhere. We partially agree with the suggestion that we  d(#[use smaller units than U.S. Coast Guard Districts, such as Rand McNally's Basic Trading Areas (BTAs)  S4- d(#or the Commerce Department's Economic Areas (EAs),N%(4 {O- v ԍSee 47 C.F.R.  24.102, 90.7; see also Rand McNally Commercial Atlas & Marketing Guide 3839 (128th  {Of- d(#xed. 1997). We have sometimes referred to EAs as Basic Economic Areas. See Rulemaking to Amend Parts 1, 2,  {O0- d(#21, and 25 of the Commission's Rules to Redesignate the 27.529.5 GHz Frequency Band, Third Notice of Proposed  {O-Rulemaking and Supplemental Tentative Decision, CC Docket No. 92297, 11 FCC Rcd 53, 85 (1995).N in order to permit smaller entities to participate  S- d(#.in auctions without having to bid for territory far exceeding their operating needs.& yOY - v ԍRobert Sassaman Comments at 1; UTC Comments at 34. Commenters particularly object to creating just  d(#one licensing area in the Eighth U.S. Coast Guard District, which covers North Dakota, South Dakota, Wyoming,  d(#yNebraska, Iowa, Colorado, Kansas, Missouri, Kentucky, West Virginia, Tennessee, Arkansas, Oklahoma, New  d(#Mexico, Texas, Louisiana, Mississippi, Alabama, and parts of Pennsylvania, Ohio, Indiana, Illinois, Wisconsin,  {Oy - d(#Minnesota, Florida, Georgia, and the Gulf of Mexico, see 33 C.F.R.  3.401. ITA/CICS Comments at 45; Robert Sassaman Comments at 1. When we converted  d(#from sitebased licensing to geographic licensing of 220222 MHz band frequencies (the frequency band  d(#Kdesignated for auction that most closely approximates public coast VHF spectrum), we used differentsized  Sh- d(#licensing areas in order to afford licensees the opportunity to provide different types of service offerings.z'h2  yO:- v ԍAmendment of Part 90 of the Commission's Rules to Provide for the Use of the 220222 MHz Band by  {O- d(#the Private Land Mobile Radio Service, Third Report and Order and Fifth Notice of Proposed Rulemaking, PR  {O- d(#Docket No. 89552, 12 FCC Rcd 10943, 10982 (1997) (220 MHz Third Report and Order); see Amendment of Part  d(#90 of the Commission's Rules to Provide for the Use of the 220222 MHz Band by the Private Land Mobile Radio  {O^- d(#: Service, Second Memorandum Opinion and Order and Third Notice of Proposed Rulemaking, PR Docket No. 89552,  {O(- d(#11 FCC Rcd 188, 220 (1995), aff'd on other grounds sub nom. Suncom Mobile & Data, Inc. v. FCC, 87 F.3d 1386 (D.C. Cir. 1996).z  d(#{The smallest licensing area we used was the EA because we believed that it best approximated the  S- d(#Lsmallest area desired by the typical user.k(z {O-ԍ220 MHz Third Report and Order, 12 FCC Rcd at 10982.k Similarly, we find that EAs, as defined in Section27.6 of our  S- d(#Rules,E)  yO{-ԍ47 C.F.R.  27.6.E are appropriate licensing areas for the VHF public coast spectrum in inland areas, because they  d(#zreflect urban, suburban, and rural traffic patterns, and thus approximate the smallest area desired by a  Si -typical user.#*i  yO- v ԍAmendment of Part 90 of the Commission's Rules to Facilitate Future Development of SMR Systems in  {Om -the 800 MHz Frequency Band, Second Report and Order, PR Docket No. 93144, 12 FCC Rcd 19079, 19088 (1997).#  S -   14.` ` Yet one of our principal reasons for converting to geographic licensing is that our current  d(#licensing approach has "ma[d]e it extremely difficult for a single entity to obtain enough geographically  S - d(#Mand spectrally contiguous stations to develop an automated coastal system."b+  {O3%-ԍSecond Further Notice, 12 FCC Rcd at 16988.b We believe that using  d(# licensing areas smaller than U.S. Coast Guard Districts in maritime areas would similarly impede the"j +,l(l(,,;^"  S- d(#development of such systems.Y,X yOh- v kԍFor example, we note that if we were to utilize Major Trading Areas, which are larger than EAs or BTAs,  d(#zwe would divide the Great Lakes and the lower Mississippi River into six licensing areas each, reducing the likelihood of there being a single licensee there. Y Thus, we conclude that using areas analogous to U.S. Coast Guard  d(#KDistricts in the maritime areas is the most appropriate alternative, because, as MariTEL notes, coast station  d(#operators are required to coordinate safety communications services with the Coast Guard, and because  Sg- d(#the U.S. Coast Guard Districts reflect vessel movement patterns.U-g yO-ԍMariTEL Reply Comments at 56.U Thus, geographic licensees will be able to provide appropriate widearea services to vessels, and to better compete with other CMRS providers.  S- $15.` ` Therefore, licensing areas identical to EAs shall be used in inland regions, but licensing  d(#{areas analogous to U.S. Coast Guard Districts shall be used in maritime areas. We will distinguish  Sh- d(#jbetween EAs that are near one or more major waterways,.hx yO - v =ԍSuch EAs include those near the Atlantic Ocean; the Pacific Ocean below the Arctic Circle; the Great Lakes;  d(#the Gulf of Mexico and Gulf Intracoastal Waterway; the Mississippi River upriver to Brainerd, Minnesota; the  d(#Missouri River to Sioux City, Iowa; the Ohio River to Pittsburgh, Pennsylvania; the Tennessee River to Knoxville,  d(#Tennessee; the Arkansas River to Tulsa, Oklahoma; the Red River to Fulton, Arkansas; and the Columbia River to  {O- d(#Richland, Washington. These are the chief navigable rivers in the United States. See Webster's New Geographical  {Oj-Dictionary 1191, 1247 (1977). referred to herein as maritime EAs, and those  S5- d(#EAs no part of which is within one hundred miles of a major waterway, referred to herein as inland EAs./5  {O- v ԍCf. 47 C.F.R.  90.283 (defining inland areas where I/LT sharing is permitted as beginning 72116 miles from navigable waterways, depending on the I/LT station's power and antenna height).  d(# Each inland EA will constitute a separate licensing area, or VHF Public Coast area (VPC), and VPCs  S- d(#jconsisting of a single inland EA will be known as inland VPCs.0N  yO- v ԍLicensing by inland EAs will reduce the size of the geographic service area corresponding to the Eighth U.S.  d(#YCoast Guard District, as the commenters requested. Of the 93 EAs located entirely or mostly in the Eighth District,  yOM- d(# 21 are inland EAs. Inland EAs constitute all of Montana, Wyoming, Nevada, Utah, Colorado, New Mexico; most  d(#of Arizona, Idaho, North Dakota, and South Dakota; and part of Oregon, California, Nebraska, Kansas, Oklahoma,  {O-Texas, and Minnesota. See Appendix D. This approach will more closely mirror  d(#the current nature of this service away from waterways, and will help differentiate between water and  d(#yinland areas. Parties interested in bidding for new geographic area licenses will be able to choose between  d(#[geographic areas near water and those that are on land. Each inland VPC shall be referred to by the name of the EA it comprises.  S -  16.` ` Maritime EAs, on the other hand, shall be grouped into larger VPCs, known as maritime  d(#=VPCs. The maritime VPC boundaries will correspond roughly to U.S. Coast Guard District boundaries,  d(#jthus providing, along major waterways, the benefits of widearea licensing by U.S. Coast Guard District.  d(#In addition, maritime EAs straddling U.S. Coast Guard District boundaries have been assigned to the most  S- d(#appropriate maritime VPC.1 yOq$- v ԍInformation regarding the VPCs and their constituent EAs is set forth in Appendix D and in 47 C.F.R. 80.371(c), as amended herein. We note that each maritime VPC includes the adjacent waters under the  d(#jurisdiction of the United States, because public coast service is marinebased, without distinct markets" X1,l(l(,,^"  S- d(#for land and marine customers.j2 {Oh-ԍSee MariTEL Comments at 89; Orion Comments at 2. j The maritime VPCs will be referred to by the titles set forth in the table  S- d(#above (see paragraph 12), except that the maritime VPC analogous to the Eighth Coast Guard District shall be referred to as the Mississippi River VPC.  S5- 3.` ` Treatment of incumbent licensees   S- 17. IIIA2  IIIA2  IIIA2 ` ` Proposal. The Commission proposed in the Second Further Notice that each incumbent  d(#maritime licensee, including PLMR licensees, be permitted to continue operating pursuant to its current  Sj- d(#station license.b3jZ {Od -ԍSecond Further Notice, 12 FCC Rcd 1698990.b It proposed to require the new geographic area licensees to afford interference protection  S7- d(#?in accord with Section 80.773 of our Rules.G47 yO -ԍ47 C.F.R.  80.773.G Section 80.773 specifies a 12 dB ratio of desired to  d(#yundesired signal strength within the incumbent's service area as the criterion for VHF public coast station  S- d(#cochannel interference protection.b5| {O-ԍSecond Further Notice, 12 FCC Rcd 1698990.b In turn, the Commission proposed to allow each incumbent licensee  d(#to renew, transfer, assign, or modify its license only to the extent that it did not extend its service area  Sk - d(#or spectrum allotment.:6k  {O-ԍId.: Finally, it proposed that modifications that would extend an incumbent's service  d(#area or use additional frequencies would be contingent upon an agreement with each affected geographic  S - d(#area licensee.:7  {OE-ԍId.: The Commission sought comment from both the maritime and PLMR communities  d(#concerning the general treatment of incumbent licensees, the appropriate interference protection criteria,  S -and whether mobiletomobile communications should be permitted.D8 2  {Oq-ԍId. at 16990.D  S9- 18.` ` Decision. We conclude that allowing incumbent licensees (including I/LT users and other  d(#PLMR licensees operating on this spectrum pursuant to waivers) to continue operating under the terms  d(#of their current station licenses will further the public interest by avoiding interruption of the services they  S- d(#provide.R9  {O-ԍSee APCO Comments at 2 n.1.R We agree, however, with the commenters that oppose using Section 80.773 for all types of  Sn- d(#incumbent.Z:nV  {Od!-ԍSee, e.g., MariTEL Comments at 5. Z Therefore, we will require geographic area licensees to afford incumbent coast station  d(#licensees cochannel interference protection in accord with Section80.773 of our Rules, but cochannel  d(#zinterference protection for I/LT and other PLMR incumbents shall be based on the standard for SMR  S- d(#services in the 220222 MHz band.i; {O]%-ԍSee 47 C.F.R.  90.723(i), 90.763(b)(1)(i).i This alternative resembles the proposal of ITA/CICS and UTC that  d(#the Commission afford incumbent PLMR users the interference protection provided for in the rules" z;,l(l(,,Q^"  S- d(#applicable to the PLMR users' various services._< yOh-ԍITA/CICS Comments at 67; UTC Comments at 5. _ That precise proposal cannot be adopted, however,  d(#because PLMR licensees use these frequencies only on a shared basis, so no protection standard currently  S- d(#exists.U=X {O-ԍSee 47 C.F.R.  90.173(a). U With respect to the particular standard, then, we conclude that the same 12 dB desired to  d(#undesired signal strength standard as Section 80.773 provides for VHF public coast stations should be used  d(#yfor incumbent public coast station operations, while incumbent PLMR operations will receive at least 10 dB protection to their 38 dBu contours.  S-  19.` ` While we will not require that incumbents provide a map of their coverage areas in order  d(#to be entitled to interference protection, as proposed by MariTEL, we nonetheless note that the protection  d(#?afforded to incumbent licensees will be dependent upon the technical information on file with the  d(#Commission, from which the geographic area licensees will be able to determine the appropriate level of  S- d(#[cochannel interference protection.G> yOY-ԍMariTEL Comments at 6.G We encourage incumbents to verify the information in our database  d(#lconcerning their operations in advance of the auction to ensure that their existing operations are in accordance with their station authorizations.  S - 20.` ` We also conclude that incumbents should be prohibited from renewing, transferring,  d(#assigning, or modifying their licenses in any manner that extends their service area or results in their  d(#Lacquiring additional frequencies, without the consent of each affected geographic area licensee. We reject  d(#lMMR's proposal to allow incumbent public coast station licensees to expand their systems, both  S7- d(#geographically and by additional frequencies, before the commencement of geographic area licensing.s?7z {OQ-ԍMMR Comments at 9; see also Robert Sassaman Comments at 12.s  d(#Similarly, we disagree with MariTEL's suggestion that we permit such expansion by incumbents on the  d(#?condition that such operations cease if the incumbent does not acquire the geographic area license  S- d(#.including the subject service area, or make suitable arrangements with the geographic area licensee.M@  yOJ-ԍMariTEL Reply Comments at 8.M We  d(#believe that permitting such incumbent expansion, whether permanently or conditionally, would undermine  S8- d(#implementation of and a smooth transition to the geographic licensing approach we adopt today. A8 {Ot- v ԍThe auction of public coast station geographic licenses is scheduled for the fourth quarter of this year. See FCC Announces Spectrum Auction Schedule for 1998, Public Notice No. DA 972497, at 3 (released Nov. 25, 1997).  In  d(#addition, conditional expansion would not be in the public interest because users would not have certainty  d(#as to whether service would continue. Moreover, our treatment of incumbents here is consistent with our  S-approach in other CMRS contexts where we have transitioned to geographic area licensing.(B(  {O5"- v zԍSee Amendment of Part 90 of the Commission's Rules to Facilitate Future Development of SMR Systems  {O"- d(#in the 800 MHz Frequency Band, First Report and Order, Eighth Report and Order, and Second Further Notice of  {O#- d(#MProposed Rulemaking, 11 FCC Rcd 1463, 151314 (1995), aff'd on other grounds sub nom. Chadmoore  {O$-Communications, Inc. v. FCC, 113 F.3d 235 (D.C. Cir. 1997) (800 MHz SMR Order).(  S9- `21.` ` We also disagree with MariTEL's assertion that existing licensees providing contiguous  d(#coverage on a given channel pair should be permitted to obtain a combined authorization for that coverage" B,l(l(,,^"  d(#[area, which would enable an incumbent to relocate its facilities within its combined coverage area for that  S- d(#channel pair without making arrangements with the geographic area licensee.IC yO5-ԍMariTEL Comments at 4. I The proposal, which is  d(#based on a similar provision for 800 MHz Specialized Mobile Radio (SMR) incumbents, is unsuited to  Sg- d(#the public coast service.JDgX yO_-ԍ47 C.F.R.  90.693(a).J Unlike 800 MHz SMR, public coast station licensees with contiguous stations  d(#do not use the same channel pairs at each site, so the proposal would require the issuance of a different  S- d(#combined license for each channel pair.E yO - v ԍMariTEL's Maryland operations provide an example. MariTEL's Baltimore station operates on Channels  d(#25 and 28, but its Cambridge station operates only on Channel 28. The Cambridge station's service area overlaps  d(#the Baltimore station's service area. The service area of MariTEL's Point Lookout Ridge facility, which operates  d(#,on Channel 25, overlaps the Cambridge service area and a small part of the Baltimore service area. Thus, the three  d(#stations would need a Channel 25 combined license and a Channel 28 combined license, because the two combined contours differ. Also, unlike SMR systems, which serve land areas, public coast  d(#station systems are unlikely to have "dead spots" completely surrounded by facilities licensed to the same  d(#operator on the same frequency, so a primary reason for granting such licenses to SMR operators is not  Sh- d(#present in the public coast service.lFh`  {Oh-ԍSee 800 MHz SMR Order, 11 FCC Rcd at 15141515.l Finally, we already have granted MariTEL the siting flexibility it  d(#seeks: incumbents will have the right to renew, transfer, assign, or modify a license in a manner that does  d(#jnot extend the licensee's service area or acquire additional frequencies. Thus, even without the procedure  d(#requested by MariTEL, incumbents may add, modify, relocate, or eliminate facilities within their combined  d(#]contour for a given channel pair, provided they do not expand their current service areas or obtain additional frequencies.  S - 22.` ` We nevertheless recognize that maintaining records for a large number of separate call  d(#signs for one regional system can be burdensome. For example, multiple call signs can require multiple  d(#modification requests and staggered renewal applications. We have granted waivers to consolidate  d(#multiple facilities within a single system under a single license with a single call sign in the past, and we  d(#/will, after the close of the auction for geographic area licenses, entertain modification requests to this  d(#effect from incumbents. To avoid manipulation and evasion of construction and renewal requirements, such consolidated licenses ordinarily will expire on the expiration date of the earliesttoexpire site license.  Sk- a23.` ` Finally, we are not persuaded that MariTEL's proposal to permit mobiletomobile  S8- d(#>communications in coastal areasIG8  yO-ԍMariTEL Comments at 67.I is appropriate at this time, because the record contains insufficient  d(#zinformation regarding channel capacity and cochannel interference protection. We also are concerned  S-that permitting mobiletomobile communication may impair the Maritime Services' safety functions.H  {O"- v ԍCf. Amendment of Subparts A and E of Part 95 to Improve the General Mobile Radio Service (GMRS),  {O#-Report and Order, PR Docket No. 87265, 3 FCC Rcd 6554, 6560 (1988).  Sl- 4.` ` Licensing   S- 24. IIIA3  IIIA3  IIIA3  IIIA3 ` ` Proposal. The Commission proposed in the Second Further Notice to authorize a single" H,l(l(,,^"  d(#ylicensee to operate on all unassigned VHF public correspondence frequencies within a geographic area for  S- d(#a tenyear license term.eI {O5-ԍSecond Further Notice, 12 FCC Rcd at 1699192.e It also proposed to permit each geographic area licensee to place stations  d(#janywhere within its geographic area to serve vessels or units on land, so long as marineoriginating traffic  Sg- d(#yis given priority and incumbent operations are protected.:JgZ {Oa-ԍId.: The Commission proposed that, with certain  S4- d(#exceptions, base stations and land units be blanket licensed under the geographic area license.LK4 yO-ԍ47 C.F.R.  80.21.L It also  d(#proposed that the spectrum authorized to an incumbent that fails to construct, discontinues operations, or  d(#\otherwise has its license terminated by the Commission would automatically revert to the geographic  d(#licensee, and that the Commission would presume a negotiated assignment or transfer of an incumbent  Sh- d(#station to a geographic area licensee to be in the public interest.hLh| {O -ԍSecond Further Notice, 12 FCC Rcd at 16992.h Finally, the Commission proposed to  d(#use the current rules regarding VHF public coast operations to define a licensee's permissible field strength  d(#.at its service area boundaries; and to authorize the use of VHF public coast spectrum in waterways near  S- d(#Canada pursuant to coordination with Industry Canada,DM {O}-ԍId. at 16993.D as outlined in the Canada/U.S.A. channel  S - d(#agreements.FN  yO-ԍ47 C.F.R. 80.57.F The Commission also sought comment on whether to take any steps to facilitate use of this  Si -spectrum by public safety entities.bOi 0  {O9-ԍSecond Further Notice, 12 FCC Rcd at 16993.b  S - $25.` ` Decision. We conclude that authorizing a single geographic area licensee to operate on  d(#>all unassigned VHF public correspondence frequencies within the defined service areas for a tenyear  d(#license term will further the public interest and the goals underlying this proceeding. Contrary to Murray  Sk- d(#Cohen's contention,LPk  yO-ԍMurray Cohen Comments at 1.L we believe that multiple public coast station licensees in the same area are not  d(#necessary to foster competition, because, as MariTEL notes, vessel operators operating along the coast  S- d(#already have a variety of CMRS providers from which to select.OQR  yO-ԍMariTEL Reply Comments at 45.O Thus, we conclude that the level of  d(#ycompetition will not be adversely affected by authorizing a single geographic licensee. In fact, we believe  d(#that competition in the maritime market will be fostered because such licensee will be better able to  d(#expand its service offerings and establish an automated system. Each geographic licensee will be  d(#Lpermitted to place stations anywhere within its region, on land or water, and to serve vessels or units on  d(#land provided that marineoriginating traffic is given priority and incumbent operations are protected. This  d(#>increased flexibility will enable licensees to serve additional markets and will promote the delivery of  d(#innovative telecommunications services, while preserving service that protects the safety of life and property at sea.  S- B26.` ` We also conclude that the geographic license will constitute a blanket authorization for"Q,l(l(,,^"  d(#\both base stations and land units. However, geographic area licensees will be required to individually  d(#license any base station that requires an Environmental Assessment pursuant to Section 1.1307 of the  d(#{Commission's Rules or international coordination, or would affect the radio frequency quiet zones  d(#described in Section 80.21 of the Commission's Rules. This simplified approach toward initial licensing  d(#and subsequent system modification is consistent with the approach we have taken for geographic area  S- d(#licensing in other wireless services.oR {Oi-ԍSee, e.g., 47 C.F.R.  22.165, 101.1009(a).o In addition, we believe that such an approach will increase  d(#operational flexibility (resulting in faster, more responsive service to the public) while reducing  d(#Nadministrative burdens on both licensees and the Commission. If an incumbent fails to construct,  d(#discontinues operations, or otherwise has its license terminated by the Commission, the spectrum covered  d(#by the incumbent's authorization will automatically revert to the geographic area licensee (even in a  d(#ygeographic area partitioned by the licensee, unless the partitioning agreement provides otherwise), except  S- d(#[for spectrum set aside for public safety use.TSZ {O -ԍSee 47 C.F.R.  90.173(n).T If a licensee negotiates to acquire an incumbent station by  S - d(#assignment or transfer, the assignment or transfer will be presumed to be in the public interest.QT  {O(-ԍSee 47 C.F.R.  90.687.Q This will  d(#kassist geographic licensees in consolidating spectrum, and give them greater flexibility in managing the spectrum and establishing coastal and widearea systems.  S - 27.` ` MariTEL, in its petition for reconsideration of the Second Report and Order, proposes that  d(#VHF public coast station and Automated Maritime Telecommunications System (AMTS) coast station  d(#licensees and applicants intending to serve units on land be required to submit plans demonstrating how  S8- d(#Lthey will afford priority to maritime communications.GU8~ yOV-ԍMariTEL Petition at 5.G We agree with Fred Daniel d/b/a Orion Telecom  S- d(#(Orion), an AMTS station licensee, that such a requirement is not needed.oV {O-ԍSee Orion Petition to Deny at 34 (filed Sept. 9, 1997).o We believe that licensees will  d(#zcomply with the requirements of Section 80.123(b) of our Rules, which requires public coast stations  d(#yserving stations on land to afford priority to marineoriginating communications through any appropriate  Sl- d(#electrical or mechanical means.JWl yO-ԍ47 C.F.R. 80.123(b).J If, however, our experience shows us otherwise, we reserve the right to revisit this issue.  S- B28.` ` Geographic licensees and incumbents will be prohibited from exceeding a field strength  d(#zof +5 dBu (decibels referenced to one microvolt per meter) at their service area boundaries (unless the  d(#bordering licensee agrees to a higher field strength). Rather than extending precise VPC boundaries into  d(#the oceans, we expect adjacent VPC licensees (or their partitionees) to coordinate waterbased site  d(#/selection to avoid harmful interference. This approach provides licensees the ability to operate their  d(#systems up to the borders of their service areas, while also providing protection to adjacent licensees. The  d(#use of VHF public coast spectrum in areas along the Great Lakes, St. Lawrence Seaway, and the coastal  d(#waters of Washington will be authorized pursuant to coordination with Industry Canada, as outlined in the  S;-Canada/U.S.A. channel agreements set forth in Section80.57 of the Commission's Rules.FX;0  yO '-ԍ47 C.F.R.  80.57.F "; X,l(l(,,<^"Ԍ S-  _ԙ29.` ` Regarding whether we should take steps to facilitate use of this spectrum by public safety  d(#entities, the Association of PublicSafety Communications OfficialsInternational, Inc. (APCO), the  d(#frequency coordinator for the Part 90 Police, Local Government, and 800 MHz Public Safety Pool channel,  d(#Land the ForestryConservation Communications Association (FCCA), the frequency coordinator for the  d(#ForestryConservation Radio Service, propose that public safety users be afforded a reasonable opportunity  d(#yto seek any currently unused frequencies before any geographic area licenses are auctioned; and that extra  d(#channel pairs be excluded from auctions and be made available only to public safety entities for at least  S- d(#five years thereafter.Y {O-ԍAPCO Comments at 34; FCCA Comments at 23; see also State of Montana Comments at 1. They state that public coast VHF spectrum is ideal for many public safety and  d(#forestryconservation operations because it permits widearea coverage with fewer sites than higher  S5- d(#frequency bands.ZZ5Z yO/ -ԍAPCO Comments at 23; FCCA Comments at 2.Z In addition, this spectrum would be fully interoperable with existing public safety and  S- d(#forestryconservation VHF channels.Z[ yO -ԍAPCO Comments at 23; FCCA Comments at 2.Z We note that public safety and forestryconservation agencies need  d(#additional spectrum, but in many areas no VHF public safety or forestryconservation spectrum is  S - d(#available.~\ z {O-ԍPublic Safety Wireless Advisory Comm., Final Report 3233 (Sept. 1996).~ APCO states that giving public safety entities a priority to obtain vacant public coast VHF  d(#channels would accord with longstanding Commission policy and with the Balanced Budget Act, which  d(#requires the Commission, under certain conditions, to waive any requirement of the Communications Act  d(#[or the regulations thereunder (except regulations regarding harmful interference) to permit a public safety  S -entity to use unassigned frequencies.]  yO|-ԍAPCO Comments at 4 (citing Balanced Budget Act of 1997, 3004 (to be codified at 47 U.S.C. 337)).  Sj- 30.` ` Other commenters oppose APCO's proposal, on the grounds that these frequencies are not  d(#wellsuited for use by public safety entities, because most of the available channels are in rural areas while  S- d(#the greatest public safety needs are in urban areas.c^ yO@-ԍITA/CICS Comments at 8; Coast Guard Comments at 2.c In this connection, they noteN_,  yO-ԍMariTEL Reply Comments at 11.N that 24 MHz in the  S- d(#\746806 MHz band have been reallocated for public safety entities.F`\  {O-- v ԍSee 47 U.S.C. 337 (as amended by Balanced Budget Act,  3004); Reallocation of Television Channels  {O- d(#6069, the 746806 MHz Band, Notice of Proposed Rule Making, ET Docket No. 97157, 12 FCC Rcd 14141, 14145 (1997).F They also contend that setting  d(#/maritime spectrum aside for public safety is not necessary or warranted because public coast station  Sk-licensees already provide emergency communication services.uak yO"-ԍITA/CICS Comments at 8; MariTEL Comments at 8; Ross Comments at 34.u  S- 331.` ` We conclude that designating two contiguous channel pairs for public safety usersbp yO&-ԍPublic safety users are persons and entities eligible for licensing under 47 C.F.R. Part 90, Subpart B. in"b,l(l(,,q^"  S- d(#-each inland VPC, but not in the maritime VPCs, will best further the public interest.xc yOh-ԍThe channels designated in each inland VPC are set forth in Appendix E.x We  d(#believe that such a setaside is not likely to adversely affect the development of new systems in these  d(#regions. We also find that allotting fewer channel pairs would be of little utility to public safety, while  d(#allotting more could leave the licensee with too little spectrum to be useful. Designating the channels in  d(#advance, and not holding any other channels aside, also avoids unnecessary delay of the auction for public  d(#coast spectrum and allows prospective bidders to have a clearer understanding of what spectrum is vacant  d(#and available. The ultimate use for these reserved frequencies, and the procedures for licensing this  S- d(#kspectrum, shall be decided as part of our pending public safety proceeding.d^X {O - v ԍSee Development of Operational, Technical and Spectrum Requirements for Meeting Federal, State and  {O] - d(#Local Public Safety Agency Communication Requirements Through the Year 2010, Second Notice of Proposed  {O' -Rulemaking, 12 FCC Rcd 17706 (1997) (Public Safety Second NPRM). We decline to set aside  d(#ychannel pairs in any of the larger VPCs because, due to the scarcity of spectrum, such an action, as noted  S5- d(#yby MariTEL, would make the development of widearea coastal systems very difficult.Ie5~ yOS-ԍMariTEL Comments at 78.I Moreover, we  d(#/believe that the public coast spectrum that we are setting aside for public safety use will sufficiently  d(#.accommodate public safety needs in this band without undermining the goals underlying this proceeding and the new licensing approach we adopt today.  S6 - 5.` ` Coverage requirements   S - 32. IIIA4  IIIA4  IIIA4  IIIA4 ` ` Proposal. In the Second Further Notice, the Commission solicited comment on an  S - d(#/appropriate construction requirement for VHF public coast geographic area licensees.ef  {OL-ԍSecond Further Notice, 12 FCC Rcd at 1699495.e One option  Sk- d(#suggested was to require provision of "substantial service" to their service areas within ten years.Dgk {O- v /ԍId. "Substantial service" generally is defined as service which is sound, favorable, and substantially above  {Ou-a level of mediocre service which just might minimally warrant renewal. See, e.g., 47 C.F.R.  90.816(b)(1)(i).D  d(#=Alternatively, the Commission requested comment on subjecting geographic area licensees to the current  d(#eightmonth construction requirement for public coast stations or establishing a different construction  d(#requirement, such as requiring coverage of at least twenty percent of the population or fifty percent of  S-navigable waterways in the service area within five years.kh  {O;-ԍSecond Further Notice, 12 FCC Rcd at 1699495.k  S9- o 33.` ` Decision. We conclude that requiring provision of substantial service to the geographic  S- d(#area licensees' service areas within ten years, as proposed in the Second Further Notice, would not achieve  d(#our goals of promoting efficient use of the spectrum; encouraging the provision of service to rural, remote,  d(#=and insular areas; and preventing the warehousing of spectrum. We remain convinced, however, that the  d(#>current eightmonth construction requirement, unmodified, would impose an unreasonable burden on  d(#geographic area licensees. We therefore believe it necessary to establish a construction requirement that  d(#will encourage construction and prevent spectrum warehousing while providing geographic licensees with  d(#sufficient flexibility to meet market demands for service. We agree with MMR and MariTEL that,  d(#because of the importance of public coast stations to maritime safety, the construction requirement should" h,l(l(,,z^"  S- d(#not be too loose, particularly along coastlines and other "navigable waterways."piZ {Oh- v .ԍMariTEL Comments at 9; MMR Comments at 10; see also ITA/CICS Comments at 10. "Navigable waters"  d(#are the territorial waters of the United States, and its internal waters that are or have been susceptible for use as highways for interstate or foreign commerce. 47 C.F.R.  80.5.p In light of the maturity  d(#of the Maritime Services along the busiest waterways, however, we do not believe that requirements as  S- d(#zstrict as they suggest are necessary.j  yO$- v ԍMMR proposes requiring service to the region's navigable waterways within one year. MMR Comments  d(#jat 10. MariTEL proposes that geographic area licensees be required to construct at least ten percent of their  d(#authorized channels along eighty percent of the region's navigable waterways within one year of authorization, and fifty percent of the channels along eighty percent of the waterways within ten years. MariTEL Comments at 10. We shall instead require substantial service within five and ten  d(#years, as described below. In addition, geographic area licensees shall be afforded a renewal expectancy  d(#when their license terms expire, provided that they demonstrate that they (1) have provided substantial  d(#service during their license term; and (2) have complied with applicable Commission rules and policies,  S-and the Communications Act.gk {O@-ԍSee 800 MHz SMR Order, 11 FCC Rcd at 1502.g  Sh- o!34.` ` We will require maritime VPC licensees to provide substantial service within five years  d(#of initial authorization, which can be satisfied by a demonstration of coverage to onethird of the maritime  S- d(#zVPC's major waterway(s)Tld  {O-ԍAs defined in note 46, supra.T; and again within ten years, which can be satisfied by a demonstration of  d(#Lcontinuous coverage to twothirds of the major waterway(s). To satisfy the requirement along a river or  d(#the Gulf Intracoastal Waterway, service should be provided across the entire width. To satisfy the  Si - d(#requirement on other waterways, coverage should extend out 20 nautical milesfmi  {O-ԍSee 47 C.F.R. 80.225(b), 80.905(a)(1).f (unless limited to a  d(#>smaller area by an international or VPC border) from the coastline or, where applicable, from the line  S - d(#established by the Coast Guard to divide inland waters from territorial seas.^n  {O+-ԍSee 33 C.F.R.  2.0520(b), Part 80.^ In maritime VPCs with  d(#more than one major waterway, the coverage refers to the total length of all major waterways; coverage  d(#Lneed not necessarily be provided to every major waterway, or to any minimum percentage of each major  d(#waterway. These "safeharbor" examples are intended to provide licensees a degree of certainty regarding  d(#how to comply with the substantial service requirement. The requirement can be met in other ways, which will vary depending on the market served, and we will review licensees' showings on a casebycase basis.  S- P"35.` ` MMR proposes to require construction of sufficient transmitters to provide service on all  d(#authorized frequencies simultaneously rather than using a frequencyagile transmitter (which MMR  S8- d(#contends is merely a channelwarehousing device).Jo8 yO"-ԍMMR Comments at 10.J However, we agree with BR Communications  d(#(BRC), a developer of HF radio systems, which says that such a requirement "would prevent licensees  d(#.from using modern broadband antennas and radio amplifiers, locking them instead into outdated, 1960's d(#era architecture. Moreover, it would increase dramatically the costs of placing a new coast station into"o,l(l(,,$^"  S- d(#service and, as a result, would undermine the development of competition in the maritime service."Ip yOh-ԍBRC Reply Comments at 3.I We  d(#jendeavor to adopt technologyneutral policies, so licensees can choose the equipment best suited to their  S-needs. q(X {O- v ԍSee, e.g., Replacement of Part 90 by Part 88 to Revise the Private Land Mobile Radio Services and Modify  {O\- d(#the Policies Governing Them, Report and Order and Further Notice of Proposed Rulemaking, PR Docket No. 92 {O&- d(#J235, 10 FCC Rcd 10076, 10095 (1995), on reconsideration, Memorandum Opinion and Order, 11 FCC Rcd 17676  {O-(1996) (PLMR Report and Order).  We also note that no such requirement is imposed on other CMRS providers.r&H {O - v ԍSee, e.g., Amendment of the Commission's Rules to Establish New Personal Communications Services,  {OL - d(#zThird Report and Order, GEN Docket No. 90314, 9 FCC Rcd 1337, 1341, 135960, on reconsideration,  {O - d(#Memorandum Opinion and Order, 9 FCC Rcd 7805 (1994), aff'd on other grounds sub nom. Freeman Eng'g Assocs., Inc. v. FCC 103 F.3d 169 (D.C. Cir. 1997).  S4- o#36.` ` We also will require inland VPC licensees to provide substantial service within five and  d(#ten years. For inland VPC licensees, substantial service can be satisfied by a demonstration of coverage  d(#-to at least onethird of the population of the VPC within five years of initial authorization and at least two d(#thirds of the population within ten years. This is similar to the approach we adopted for geographic area  Sh- d(#licensees in the 220 MHz Service.osh6  {O>-ԍSee 220 MHz Third Report and Order, 12 FCC Rcd at 11020.o As is the case with the maritime VPC safeharbor examples, these  d(#safeharbor examples are intended to provide licensees a degree of certainty regarding how to comply with  d(#the substantial service requirement. The requirement can be met in other ways, and we will review  d(#?licensees' showings case by case if they rely on a different basis. Service need not be provided to  d(#waterways in the inland VPC, but if waterways are served, public coast stations' maritime obligations  Si - d(#(e.g., safety watch and priority to marineoriginating traffic) shall apply. We decline to adopt the proposal  d(#of ITA/CICS that the Commission prevent warehousing of inland spectrum by "permit[ting] the continued  d(#licensing of I/LT radio systems in the areas away from the navigable waters even if only on a secondary  S - d(#basis."HtZ  {O9- v ԍITA/CICS Comments at 10; see ITA/CICS Reply Comments at 3; see also Petition for Rule Making  d(#Submitted by the Land Mobile Communications Council, RM 9262 (filed Apr. 22, 1998) (proposing allocation of additional spectrum for PLMR use).H We also decline to adopt their proposal that after a period of time equal to the original  d(#/construction period, PLMR users licensed on a secondary basis be converted to primary status. We  d(#believe that the construction requirement is sufficient to prevent spectrum warehousing and, thus, such  S8-measures are not necessary.]u8 {O-ԍSee also MariTEL Reply Comments at 12.]  S- 6.` ` Partitioning and disaggregation  S-  Sl- A$37. IIIA5  IIIA5  IIIA5 ` ` Proposal. The Commission proposed in the Second Further Notice to permit partitioning  d(#>and disaggregation by geographic area licensees, and that such transactions would be governed by the  S- d(#Commission's current partial assignment procedures.bv| {O#&-ԍSecond Further Notice, 12 FCC Rcd 1699596.b The Commission proposed to allow geographic  d(#area licensees to partition and/or disaggregate geographic area and any amount of spectrum at any time"v,l(l(,,4^"  S- d(#to any entity eligible in the Maritime Services.Dw {Oh-ԍId. at 16996.D It also proposed to permit combined partitioning and  S- d(#disaggregation.DxZ {O-ԍId. at 16995.D In addition, the Commission proposed that partitionees and disaggregatees hold their  d(#licenses for the remainder of the original licensee's term and be entitled to establish a renewal  Sg- d(#expectancy.:yg {O-ԍId.: Finally, it proposed to apply unjust enrichment payments, including accelerated payment  d(#Nof any bidding credit we adopt for small businesses, as a condition for approving partitioning and  d(#/disaggregation arrangements involving a complete or partial transfer of a license owned by a qualified  S- d(#small business to an entity that does not qualify as a small business.Dz~ {O -ԍId. at 16997.D the Commission sought comment  d(#]on these tentative conclusions, and on the respective obligations of the parties to a partitioning or  Sh-disaggregation arrangement.G{h {O-ԍId. at 1699697.G  S- Q%38.` ` Decision. We conclude that public coast geographic area licensees should be permitted  d(#to partition any portion of their geographic service area, and to disaggregate any amount of spectrum, at  S - d(#{any time to any entity eligible for a public coast station license. This approach will afford parties  d(#flexibility to pursue a variety of competitive service offerings, facilitate new market entrants, and promote  S7 - d(#delivery of quality service to the public. Moreover, contrary to Murray Cohen's assertion,L|7  yOy-ԍMurray Cohen Comments at 1.L such  S - d(#approach is consistent with our action in other CMRS contexts.}^ 2  {O- v ԍSee Geographic Partitioning and Spectrum Disaggregation by Commercial Radio Services Licensees, Report  {O- d(#and Order and Further Notice of Proposed Rulemaking, WT Docket No. 96148, 11 FCC Rcd 21831, 21860 (1996)  {Oj-(Partitioning and Disaggregation Report and Order). In addition, partitionees and  d(#disaggregatees shall hold their licenses for the remainder of the original licensee's license term, and be  d(#yable to qualify for a renewal expectancy, provided that they provide substantial service and comply with  d(#the Commission's rules and policies and the Communications Act. We believe that these requirements  d(#are necessary in order to prevent licensees from using partitioning and disaggregation to circumvent our  d(#Mrules governing license term and construction requirements, and to ensure that there will be maximum incentive for parties to pursue available spectrum as quickly as practicable.  Sl- #&39.` ` Public coast station licensees will be permitted to acquire partitioned and/or disaggregated  d(#licenses in either of two ways: (1) they may form bidding consortia to participate in auctions, and then  d(#partition or disaggregate the licenses won among consortia participants after grant; or (2) they may acquire  d(#partitioned or disaggregated licenses from other licensees through private negotiation and agreement either  d(#Nbefore or after the auction. A licensee planning to partition or disaggregate its license must file an  d(#.assignment application. We consider partitioning and disaggregation to be assignments of license, which  d(#[will, therefore, require prior approval by the Commission. In authorizing partitioning and disaggregation  S- d(#arrangements, we will follow existing assignment procedures.P~X  {O&-ԍSee 47 C.F.R.  1.924.P Under our current rules, yO- v ԍWe have adopted a Notice of Proposed Rulemaking proposing a Universal Licensing System (ULS) for  d(#wireless applications. Biennial Regulatory Review Amendment of Parts 0, 1, 13, 22, 24, 26, 27, 80, 87, 90, 95,  d(#97, and 101 of the Commission's Rules to Facilitate the Development and Use of the Universal Licensing System  {O- d(#in the Wireless Telecommunications Services, Notice of Proposed Rulemaking, WT Docket No. 98  20, FCC 983  d(#(released Mar. 18, 1998). If the ULS rules are adopted as proposed, FCC Form 603 will be used for requesting approval of assignment of licenses, including partitioning and disaggregation requests. the licensee"B,l(l(,,^"  d(#must file FCC Form 1046, Assignment of Authorization, signed by both the licensee and the qualifying  S- d(#Mentity,FB yO-ԍ47 C.F.R.  80.19.F and the qualifying entity also must file FCC Form 503, Application for Land Radio Station  S- d(#License in the Maritime Services. {O - v Mԍ47 C.F.R.  1.924(b)(2)(iv). If the ULS rules are adopted as proposed, see supra note 127, FCC Schedule G will be used for requesting public coast station licenses. We will require that a licensee disaggregate by frequency pairs. This  d(#Nrequirement is necessary for administrative purposes: updates to the database necessary to track  S4-authorizations could otherwise become delayed or prone to error.4,  {O- v ԍSee 39 GHz Report and Order, 12 FCC Rcd at 18635; Partitioning and Disaggregation Report and Order, 11 FCC Rcd at 21858.  S- o'40.` ` MariTEL argues that geographic area licensees that partition and/or disaggregate should  S- d(#=remain ultimately responsible for satisfying their coverage requirements.H  yO-ԍMariTEL Comments at 11.H We have determined that the  d(#public interest will be served by following the approach we have taken in other geographic licensing  S5- d(#=contexts; i.e. permitting licensees to negotiate which party will be responsible for meeting the applicable  S- d(#\construction requirements. {O-ԍSee Partitioning and Disaggregation Report and Order, 11 FCC Rcd at 21857. Our goal is to ensure that licensees have the flexibility to structure their  d(#@business plans, while ensuring that partitioning and disaggregation not be used as a vehicle for circumventing the applicable construction requirements. " S7 - "(41.` ` We will allow parties to partitioning agreements to choose between two options for  d(#satisfying the construction requirements: (a) the parties may either agree to meet the construction  d(#=requirements for their respective portions of the service area; or (b) the original licensee may certify that  d(#it has met or will meet the construction requirements for the entire market. Under the first option, the  d(#partitionor and partitionee would each certify that they will independently satisfy the substantial service  d(#requirement for their respective partitioned areas. If either licensee failed to meet its substantial service  d(#showing requirement, only the nonperforming licensee's renewal application would be subject to forfeiture  d(#=at renewal. Under the second option, the partitionor certifies that it has met or will meet the substantial  d(#jservice requirement for the entire market. If the partitionor fails to meet the substantial service standard,  d(#yhowever, only its renewal application would be subject to forfeiture at renewal. The partitionee's license would not be affected by that failure.     S- )42.` ` We will establish two options for disaggregating licensees. We believe that it is  d(#appropriate for the disaggregator or the disaggregatee to assume full responsibility for construction within  d(#=the shared service area, because service would be offered over the relevant population, even if not on the  S:- d(#Lentire spectrum. Under the first option, the disaggregator and disaggregatee would certify that they each":,l(l(,,^"  d(#will share responsibility for meeting the substantial service requirement for the geographic service area.  d(#If parties choose this option and either party fails to do so, both licenses would be subject to forfeiture  d(#at renewal. The second option would allow the parties to agree that either the disaggregator or the  d(#>disaggregatee would be responsible for meeting the substantial service requirement for the geographic  d(#]service area. If parties choose this option, and the party responsible for meeting the construction  d(#requirement fails to do so, only the license of the nonperforming party would be subject to forfeiture at renewal.  Sh- Q*43.` ` We no longer need to establish a separate unjust enrichment requirement for approving  d(#partitioning and disaggregation in the public coast service, because we have in another proceeding adopted  S- d(#a uniform requirement in Part 1 of our Rules for all services.^ {Oj - v ԍSee Amendment of Part 1 of the Commission's Rules Competitive Bidding, Third Report and Order and  {O4 - d(#Second Further Notice of Proposed Rule Making, WT Docket No. 9782, 13 FCC Rcd 374, 405 (1997) (Part 1 Third  {O -Report and Order); see also 47 C.F.R.  1.2111(c). The unjust enrichment provisions adopted  d(#ztherein will also apply to VHF public coast geographic licensees that are afforded a bidding credit and later elect to partition or disaggregate their licenses.  S6 - 7.` ` Technical flexibility   S - r+44. IIIA6  IIIA6  IIIA6  IIIA6 ` ` Proposal. As the Commission noted in the Second Further Notice, the basic  S - d(#channelization for VHF public coast spectrum is set forth in the ITU Radio Regulations as 25 kHz.b  {O,-ԍSecond Further Notice, 12 FCC Rcd at 16997.b  d(#However, AMTS coast stations (216220 MHz) are permitted the flexibility to use narrowband  S8- d(#.technologies in addition to the 25 kHz channel plan set forth in our rules.T8 {OX-ԍSee 47 C.F.R. 80.385(b).T The Commission proposed  S- d(#Nin the Second Further Notice that each geographic area licensee, as well as incumbent licensees, be  S-authorized to use narrowband technologies in the same manner as AMTS coast stations.n {O-ԍSecond Further Notice, 12 FCC Rcd at 16998.n  Sm- ,45.` ` Decision. We conclude that public coast licensees should be permitted to use frequencies  d(#[offset 12.5 kHz from the marine VHF band (156162 MHz) public correspondence channels where they  S- d(#are authorized on both adjacent frequencies, and, as suggested by Murray Cohen,L yOL-ԍMurray Cohen Comments at 1.L where the licensee on  d(#the other side of the offset frequency consents to such use. After the close of the comment period in this  d(#Lproceeding, the 1997 World Radiocommunication Conference (WRC97) authorized the use of 12.5 kHz  So- d(#narrowband channels to reduce local congestion,o4  {OC"- v ԍSee Final Acts of the World Radiocommunication Conference (WRC97), Geneva, 1997 (amending ITU Radio Regulations Art. S52, App. S18 n.e). so we adopt that narrowband channelization plan, in  S<- d(#lieu of our proposal to not specify a plan.b<  {Oj%-ԍSecond Further Notice, 12 FCC Rcd at 16998.b The WRC97 action also resolves the objections of the Coast  d(#Guard and Ross Engineering (Ross), a manufacturer of marine radio equipment and provider of VHF radio  d(#services, against authorizing narrowband technology without an international consensus. Those" ,l(l(,,^"  d(#commenters also oppose the use of offset channels because, among other reasons, they see no need for  S- d(#the additional channels, and no Part 80 12.5 kHz equipment has been type accepted.} yO5-ԍCoast Guard Comments at 5; Ross Comments at 57; Ross Reply Comments at 23.} We agree with  d(#MariTEL and MMR that additional channels are needed because without narrowband channel pairs, public  d(#jcoast licensees will be hampered in their efforts to compete effectively with other CMRS providers. We  d(#also are not persuaded that the lack of type accepted equipment is a sufficient reason not to adopt our  d(#proposal. In fact, the Commission has previously adopted regulations permitting the use of equipment for  S-which there is not yet type acceptance.|X yO-ԍMariTEL Comments at 12; MariTEL Reply Comments at 1214; MMR Comments at 9.|  Sh-  A-46.` ` In addition to commenting on our proposal in the Second Further Notice, the Coast Guard  S6- d(#filed a petition for rulemaking, which we elected to treat as a comment in this proceeding.6 {O - v ԍSee Letter from David E. Horowitz, Chief, Public Safety and Private Wireless Division, Wireless  d(#Telecommunications Bureau, to J.D. Hersey, Jr., Chief, Spectrum Management Division, United States Coast Guard  d(#(August 29, 1997). Orion opposes addressing the petition in this proceeding, on the grounds that the issues raised  {O- d(#therein should not delay enactment of the proposals in the Second Further Notice. Orion Petition to Set Aside at  {O- d(#J2 (filed Sept. 9, 1997); see also MariTEL Reply Comments at 1416. Because our consideration of the Coast Guard  {O- d(#-Petition did not delay the release of this Third Report and Order, the Petition to Set Aside is denied. Cf. Public  {Ov-Safety Second NPRM, 12 FCC Rcd at 17785. The Coast  d(#Guard requests that we amend Part 80 of our Rules to set aside duplex channel pairs offset 12.5 kHz from  S- d(#the marine VHF band public correspondence channels, and marine VHF Channel 228B (162.0125 MHz).2  yO-ԍCoast Guard Petition for Rule Making at 23 (filed Aug. 4, 1997) (Coast Guard Petition).  S - d(#In those areas where Channel 88 is available to maritime users,P  {O-ԍSee 47 C.F.R.  80.57.P Channel 228B is a VHF public  Sj - d(#correspondence narrowband frequency; in other areas, Channel 228B is a federal government frequency.Uj T  {O^-ԍSee 47 C.F.R.  2.106 n.G5.U  d(#The Coast Guard proposes that these channels be used for Automatic Identification Systems (AIS) and  d(#<related safety systems, in support of its Ports and Waterways Safety System (PAWSS) project, which will  d(#provide Vessel Traffic Services (VTS) to facilitate the safe and efficient transit of vessel traffic to prevent  S - d(#[collisions, groundings, and environmental damage associated with maritime accidents.Q  yO$-ԍCoast Guard Petition at 1.Q Specifically, the  Sk- d(#Coast Guard, supported by Ross and others,kv yO - v ԍRoss Comments at 23; Ross Reply Comments at 12; Robert Sassaman Comments at 2; American Waterways Operators Comments at 1. proposes that the channels be used on a shared, need d(#determined basis with VHF public coast stations, and that at least two of the eight offset channels  S- d(#]available nationwide, plus Channel 228B, be reserved in any given geographic area for such use.T yOs$-ԍCoast Guard Petition at 2, 7.T  d(#jMariTEL proposes awarding the offset frequencies to VHF public coast spectrum licensees initially, but  S-on the condition that the Commission can later designate such channels for AIS use.V^ yO'-ԍMariTEL Supplemental Comments at 23.V ",l(l(,,^"Ԍ S- _ԙ.47.` ` We believe that three subsequent developments must be considered in connection with the  d(#MCoast Guard's proposal. First, the Department of Transportation appropriation for fiscal year 1998  d(#contains funding for the PAWSS project, with both houses of Congress expressing strong support for the  Sg-Coast Guard's efforts.g {O- v #]\  PCP#эSee H.R. Rep. No. 236, 105th Cong., 1st Sess. (1997); S. Rep. No. 55, 105th Cong., 1st Sess. (1997); H.R. Rep. No. 188, 105th Cong., 1st Sess. (1997). As the House report stated,  X[AIS] technology should be the foundation o[f] any future VTS system. The AIS  technology employs onboard transponders, electronic charts, and Differential Global  }Positioning System technology to provide direct, vesseltovessel, voiceless electronic data  communications. The Committee strongly believes that this technology will significantly  Rimprove navigational safety, not just in select VTS target ports, but throughout the  $navigable waters of the United States. The Committee encourages the Coast Guard to  continue working with its PAWSS stakeholders, during the development and  implementation of this national system, to ensure that it provides the greatest amount of  Pnavigational and environmental safety for the broadest geographical area at the lowest cost  S6 -to the American taxpayers.b6 " yO-ԍH.R. Rep. No. 236, 105th Cong., 1st Sess. (1997).b   S - d(#=Second, the Interdepartment Radio Advisory Committee (IRAC)   yO"- v jԍIRAC is responsible for frequency coordination efforts on behalf of the federal government, and is composed  d(#]of representatives from various government agencies. In this connection, IRAC advises the National  d(#Telecommunication and Information Administration concerning spectrum management issues and coordinates spectrum issues among government users and with the Commission. approved the Coast Guard's request  d(#Lto use Channel 228B in those areas where it is allocated to the federal government. Finally, WRC97 set  d(#aside Channels 87B (161.975 MHz) and 88B (162.025 MHz) for AIS, but provided that, where those  S7- d(#>frequencies are unavailable, other frequencies may be used.7 {Oq-ԍSee Final Acts of WRC97 (amending ITU Radio Regulations App. S18 n.l). Channel 87 (including Channel 87B) is  S- d(#currently allocated to VHF public correspondence,L,  yO-ԍ47 C.F.R. 80.371(c). L and Channel 88B is allocated to Government non S-military agencies.K  yO--ԍ47 C.F.R. 2.106 n.G5.K  Sk-  #/48.` ` We conclude that the Coast Guard request should be granted, and two channel pairs (plus  d(#Channel 228B, where it is a maritime frequency) should be set aside in each maritime VPC for AIS. We  d(#believe that setting aside these frequencies for this purpose will enhance the safety of life and property  S- d(#Lon vessels in United States waters by reducing collisions, groundings, and environmental harm,OL  {O#-ԍSee 47 C.F.R. 80.5.O further  d(#effectuating our regulatory goal of fostering the protection of life and property at sea through the use of  d(#kmaritime radio spectrum. While we considered setting aside Channel 87B as one of the AIS channels,  d(#.we conclude that the public interest benefits flowing from such an approach are minimal as compared to  d(#the potential adverse impact on our licensing of public coast stations. First, setting aside Channel 87B",l(l(,,^"  d(#as an AIS channel would require relocation of the thirtyfour public coast stations currently authorized to  d(#luse Channel 87. Second, we believe that setting aside one broadband channel and one narrowband  d(#channel for AIS might complicate AIS implementation or raise the cost of the necessary equipment.  Sg- d(#Third, this approach would encumber one broadband channel and three narrowband channels, instead of  d(#encumbering two narrowband channels as proposed by the Coast Guard, because setting aside Channel  d(#87B would leave the surrounding narrowband channels unavailable. Finally, setting aside Channel 87B  d(#would harm maritime VPC licensees' ability to construct widearea systems by leaving most with no more than eight broadband channels. Thus, we will not designate Channel 87B as an AIS channel.  S6-  `049.` ` Instead of selecting the channel pairs for an AIS setaside, we believe the most prudent  d(#jcourse of action in furtherance of the public interest would be for the Coast Guard to negotiate with each  d(#zindividual maritime VPC licensee to select narrowband frequencies for AIS use. Within six months of  d(#jthe conclusion of the auction, we will require that the Coast Guard and each maritime VPC licensee begin  d(#jto negotiate a plan specifying narrowband duplex channel pairs within the maritime VPC (including areas  d(#jbeyond the major waterways). The Coast Guard proposal should specify which frequencies, up to two,  S - d(#the Coast Guard seeks. We note the possibility that the channels need not be the same throughout the  d(#Nmaritime VPC. If the maritime VPC licensee objects to the Coast Guard proposal, it shall make a  d(#=counterproposal within three months of receipt of the Coast Guard's plan. The final agreement shall set  d(#aside up to two channel pairs throughout the maritime VPC, or implement whatever other arrangement  S8- d(#is amenable to both parties (e.g., more than two channel pairs in some places, and one or no channel pairs  d(#elsewhere). If good faith negotiations yield no agreement within one year of the date the Coast Guard  d(#submitted its initial proposal, the Coast Guard may ask the Commission to revisit this issue and select the  d(#[channels and locations. We prefer this procedure to setting channels aside in advance because we believe  d(#that it will allow the Coast Guard time to develop its AIS plans fully and coordinate AIS frequencies with  S:- d(#neighboring countries.: yO- v ԍBecause the United States will not be using the AIS channels designated by the ITU, the Coast Guard will need to inform foreign ships of the applicable AIS channels in each region. We also believe that such approach will enhance each maritime VPC licensee's  d(#ability to pursue its own business plan and allow the parties to determine how many channels are needed  d(#in each location. In addition, this approach avoids the problems associated with uniformly setting aside  S-Channel 87B, discussed above.  S;- 150.` ` Finally, in its petition for reconsideration of the Second Report and Order, MariTEL  d(#=contends that the Commission erred in declining to adopt rules regarding maritime sharing of land mobile  S- d(#"frequencies,d  {O-ԍSecond Report and Order, 12 FCC Rcd at 16986.d and argues that such rules could be adopted now and held in abeyance pending  S- d(#developments in other proceedings.] yO-ԍMariTEL Petition for Reconsideration at 56.] However, the continued validity of one of the premises of that  Sp- d(#]sharing proposaldpB {OR"-ԍSecond Report and Order, 12 FCC Rcd at 16986.d֠- that few PLMR licensees operate within 80 kilometers of the United States  S=- d(#>coastline\= {O$-ԍNotice of Inquiry, 7 FCC Rcd at 7868.\ is questionable in light of our decision to consolidate the PLMR services in an effort to  S - d(#/introduce more flexibility.q f  {O'-ԍRefarming Second Report and Order, 12 FCC Rcd at 1431718.q Moreover, we believe that going forward with a sharing proposal could"  ,l(l(,,^"  d(#limpede the orderly and effective resolution of the issues in our pending proceeding concerning the  S- d(#[introduction of marketbased incentives for PLMR spectrum.o {O5-ԍSee PLMR Report and Order, 10 FCC Rcd at 1013841.o MariTEL has not convinced us that the  d(#kpublic interest would be served by our making a decision on sharing before reaching a final decision in that proceeding; thus, we decline to do so.  S- 8.` ` Operational flexibility   S- 251. IIIA7  IIIA7  IIIA7 ` `  OPFLEX Proposal. The Commission noted in the Second Further Notice its conclusion in another  d(#proceeding that broadband and narrowband CMRS licensees should have operational flexibility to provide  S6- d(#fixed, mobile, or hybrid services,i6Z yO0 - v ԍIn this context, "broadband CMRS licensees" included PCS, cellular, and SMR, while "narrowband CMRS  d(#licensees" included paging, narrowband PCS, commercial 220 MHz service, and forprofit interconnected Business  {O - d(#Radio Service. See Amendment of the Commission's Rules to Permit Flexible Service Offerings in the Commercial  {O - d(#Mobile Radio Service, First Report and Order and Further Notice of Proposed Rule Making, WT Docket No. 966, 11 FCC Rcd 8965, 8976 (1996).i and sought comment on whether to afford such flexibility to public  S-coast stations.b {O-ԍSecond Further Notice, 12 FCC Rcd at 16999.b  S - Q352.` ` Decision. We agree with MariTEL that allowing VHF public coast stations to provide  Sk - d(#fixed, mobile, or hybrid CMRS services on a coprimary basis with mobile services will be beneficial.vk  {O-ԍSee MariTEL Comments at 13; see also Orion Comments at 2.v  d(#We believe that affording public coast station licensees operational flexibility will enhance their ability  d(#to meet customer requirements and demand, and promote regulatory symmetry between maritime CMRS  d(#0providers and other CMRS providers. We further believe that this approach, combined with our  d(# enforcement of the construction requirements adopted today, will address MariTEL's concern about  Sl-preserving the distress and safety features of the Maritime Services, particularly along waterways.Rl2  {O>-ԍSee MariTEL Comments at 13.R  S- 9.` ` Regulatory status   S- 453. IIIA8  IIIA8  IIIA8 ` ` Proposal. The Commission noted in the Second Further Notice that allowing geographic  d(#=area licensees, partitionees, or disaggregatees to use their spectrum to provide a variety of commercial or  d(#0private mobile communications would make it difficult to determine the regulatory status of each  S- d(#licensee.b  {Ol!-ԍSecond Further Notice, 12 FCC Rcd at 16999.b The Commission proposed to establish a presumption that geographic area licensees are  d(#=telecommunications carriers, or, in the alternative, to rely on applicants to specify the type of service(s)  d(#they intend to provide in sufficient detail to enable the Commission to determine whether the particular  So- d(#licensee will be a CMRS or a PMRS provider,JoV  {Oe%-ԍId. at 1699917000.J i.e., whether the licensee offers a mobile service that is  d(#provided for profit, interconnected with the public switched network, and is available to the public or a"=,l(l(,,^"  S- d(#substantial portion of the public.T {Oh-ԍSee 47 U.S.C.  332(d)(1).T It also proposed to allow any interested party to challenge the  S- d(#regulatory status originally granted to a geographic area licensee.nZ {O-ԍSecond Further Notice, 12 FCC Rcd at 1699917000.n The Commission sought comment  d(#?on this approach and on the most efficient manner in which to administer the requirements of the  Sg-Communications Act with respect to public coast station licensees.:g {O-ԍId.:  S- 554.` ` Decision. We conclude that, as a general matter, geographic area licensees should be  d(#<subject to a presumption that they are telecommunications carriers under the Communications Act, because  d(#kthis is the current nature of the public coast service. We note, however, that this presumption can be  d(#rebutted by specifically identifying the type of service or services the licensee intends to provide in  d(#sufficient detail to enable the Commission to determine whether the nature of the service will be CMRS  S- d(#.or PMRS, common carrier or noncommon carrier.R~ {O!-ԍSee MariTEL Comments at 14.R As in other licensing contexts,q {O-ԍSee CMRS Second Report and Order, 9 FCC Rcd at 1461.q we intend to rely  d(#kprimarily upon applicants' representations regarding their regulatory status while affording interested  d(#[parties the opportunity to demonstrate that a licensee has not rebutted our presumption, provided these  d(#parties present specific allegations of fact supported by an affidavit of a person or persons with personal  S7 - d(#knowledge. &7  {Oy- v ԍSee 47 U.S.C.  309(d)(1). Geographic area licensees authorized to provide PMRS or noncommon carrier  d(#services will be subject to Part 80 of our rules. Geographic area licensees authorized to provide CMRS or common  {O - d(#carrier services will also be subject to our Title II rules applicable to other CMRS providers. See CMRS Second  {O-Report and Order, 9 FCC Rcd at 147585.  If a public coast station licensee who is authorized to provide only PMRS or noncommon  d(#carrier service actually provides CMRS or common carrier service under that license, it will be subject  S - d(#Oto appropriate enforcement action.d  {O-ԍSee, e.g., 47 U.S.C.  312(a), 503(b).d This approach will allow us to carry out our regulatory responsibilities without imposing a hardship upon licensees.  S8- A655.` ` In addition, we disagree with MariTEL's suggestion that we should forbear from imposing  d(#Mcommon carrier requirements on public coast stations pursuant to Section 10 of the Communications  S- d(#Act,D" yO -ԍ47 U.S.C. 160.D which regulation MariTEL contends is "unnecessary and not in the public interest."H yO$"-ԍMariTEL Comments at 14.H MariTEL's  d(#request cannot be granted because it is too vague, both as to the specific provisions from which we should  Sl- d(#forbear from enforcing,qlB {ON%-ԍSee CMRS Second Report and Order, 9 FCC Rcd at 1475.q and as to why forbearance would be in the public interest.)$l {O- v !ԍSee Hyperion Telecommunications, Inc., Memorandum Opinion and Order and Notice of Proposed  {OZ- d(#wRulemaking, CCB/CPD No. 963, 12 FCC Rcd 8596, 8607 (1997) ("While we are required under Section 10 to grant  d(#petitions for forbearance when we are able to make the requisite statutory findings, petitioners must support such requests with more than broad, unsupported allegations in order for us to exercise that statutory authority.").) We note, however,"l,l(l(,,^"  S- d(#that we already forbear from enforcing some common carrier requirements against CMRS operators,j {OT-ԍCMRS Second Report and Order, 9 FCC Rcd at 147585.j and  S-that further forbearance is under consideration.\F yO- v ԍPersonal Communications Industry Association's Broadband Personal Communications Services Alliance's  {O{ - d(#Petition for Forbearance for Broadband Personal Communications Services, Memorandum Opinion and Order and  {OE -Notice of Proposed Rulemaking, WT Docket No. 98100, FCC 98134 (released July 2, 1998).  Sg- 10.` ` Safety watch   S- 756. IIIA9  IIIA9  IIIA9 ` ` Proposal. 4B7Public coast stations serving rivers, bays, and inland lakes must maintain a  S- d(#continuous safety watch on marine VHF Channel 16 (156.800 MHz).Jj  yO-ԍ47 C.F.R.  80.303(a).J Presently, public coast licensees  d(#may request an exemption from this requirement upon demonstrating that federal, state, or local  Si- d(#governments maintain a continuous watch over ninetyfive percent of the station's service area.Ji  yO-ԍ47 C.F.R. 80.303(b).J The  S6- d(#zCommission proposed in the Second Further Notice to relieve public coast stations of the Channel 16  d(#]watch requirement by rule in cases where federal, state, or local governments already maintain the  S-requisite coverage.e  {O-ԍSecond Further Notice, 12 FCC Rcd at 1700001.e  Sk - }857.` ` Decision. We adopt our safety watch proposal, with some modifications requested by the  S9 - d(#?Coast Guard.U9  {O-ԍSee Coast Guard Comments at 6.U Specifically, a coast station where federal, state, or local governments maintain a  d(#continuous watch over ninetyfive percent of the station's service area will not be required to maintain a  d(#safety watch, provided that the licensee (1) determines that the "ninetyfive percent" criteria is met, (2)  d(#yis responsible for notifying the appropriate Coast Guard district office thirty days prior to discontinuing  d(#the watch, and (3) is responsible for resuming the watch at the request of the Coast Guard or Commission.  d(#We nonetheless note that the Coast Guard may require a public coast licensee to continue or resume its  d(#.safety watch temporarily during a system outage or until a replacement Coast Guard system is in place,  d(#-or permanently. Notwithstanding our decision here, all coast stations shall, if required by the Coast Guard,  d(#=remain capable of either immediately resuming the watch, or of providing the Coast Guard direct dialup  d(#.access to the necessary Channel 16 transceiver at no charge, so the Coast Guard can maintain the watch.  S;- d(#\In this connection, we noteWZ; yO$- v ԍAmendment of Part 81 of the Commission's Rules to Specify the Circumstances under which Class IIIB  {OQ%- d(#Public Coast Stations May Be Exempted from the Watch Requirement on 156.8 MHz, Report and Order, PR Docket No. 7968, 81 FCC 2d 340, 343 (1980).W the Coast Guard's description of the shortcomings of its VHF National";,l(l(,,r^"  S- d(#lDistress System, which is aging and has many coverage gaps.[ {Oh-ԍSee Coast Guard Comments at 6.[ Consequently, we reject MMR's  d(#suggestion that the safety watch requirement be eliminated because we conclude that its continuation is  S- d(#in the public interest in that it promotes safety at sea.DZ yO-ԍMMR Comments at 11.D In addition, as MariTEL and Orion note, MMR  d(#incorrectly compares other CMRS providers, who have no safety watch requirement, to the Maritime  d(#LServices, failing to take into account that other services are intended to be fully automated, and that they  S-emerged in a different context from the Maritime Services, with their public safety component.p {O -ԍSee MariTEL Comments at 37; Orion Petition to Deny at 3.p  S- 958.` ` In the Second Report and Order, we authorized automated interconnection and therefore  d(#eliminated the requirement that each radiotelephone public coast station have a licensed radiotelephone  S6- d(#operator at the station's control point.d6| {OR-ԍSecond Report and Order, 12 FCC Rcd at 16959.d MariTEL argues in its petition for reconsideration that we should  d(#have retained a requirement that there always be an operator on duty somewhere in the system (though  S- d(#not necessarily at the nearest control point) with whom a vessel can communicate during an emergency.I yO~-ԍMariTEL Petition at 34.I  d(#LOrion opposes any such requirement for AMTS stations, on the grounds that such stations are intended  Sj - d(#to be fully automated.Mj  yO-ԍOrion Petition to Deny at 3.M We are not persuaded that the continued existence of public coast stations being  d(#jrequired to maintain a safety watch justifies the reinstatement and expansion of the operator requirement  d(#kfor other stations. The Coast Guard did not contend that eliminating the operator requirement would  S - d(#jeopardize safety at sea,e .  {O-ԍSecond Further Notice, 12 FCC Rcd at 1697677.e though it notes that the MariTEL proposal would be one means of maintaining  S - d(#an exempt station's ability to resume a safety watch upon request.Q  yO-ԍCoast Guard Reply Comments at 1.Q Amending the operator requirement  d(#in the manner proposed by MariTEL would amount to reinstating that requirement for individual, non d(#integrated stations, and to creating a new requirement for AMTS stations and automated multistation  d(#systems, which already were exempt from the operator requirement, and MariTEL has not shown that it's  S- d(#proposal would produce a benefit commensurate with such a burden.[P  {O-ԍSee 47 C.F.R. 80.179(d) (1996).[ Thus, we decline to adopt MariTEL's proposal.  S9-  B.` ` Competitive Bidding Procedures  S-1.` ` Use of Competitive Bidding  Sm- #:59.` ` Proposal. The Commission, in the CMRS Second Report and Order, classified the public"m,l(l(,,#^"  S- d(#.coast service, including VHF, high seas, and AMTS public coast stations, as a CMRS. {Oh-ԍSecond Further Notice, 12 FCC Rcd at 17011 (citing CMRS Second Report and Order, 9 FCC Rcd at 1448). Subsequently,  S- d(#in the Competitive Bidding Second Report and Order, the Commission determined that mutually exclusive  S- d(#-applications for public coast station licenses would be resolved through competitive bidding.Z {O- v .ԍSecond Further Notice, 12 FCC Rcd at 17011 (citing Competitive Bidding Second Report and Order, 9 FCC Rcd 2348); 47 C.F.R.  1.2102(a)(2) (citing 47 C.F.R. Part 80, Subpart J)). It therefore  Sh- d(#proposed in the Second Further Notice to prescribe competitive bidding rules and designated entity  S6-provisions for auctioning public coast spectrum.k6 {O -ԍSecond Further Notice, 12 FCC Rcd at 1701112.k  S- P;60.` ` Following release of the Second Further Notice, Congress passed the Balanced Budget Act  S- d(#of 1997, which expanded and extended the Commission's auction authority.F {O -ԍSee 47 U.S.C.  309(j) (as amended by Balanced Budget Act,  3002). Section 309(j)(2) of the  d(#Communications Act formerly stated that mutually exclusive applications for initial licenses or  d(#construction permits were auctionable if the principal use of the spectrum was for subscriptionbased  S- d(#=services and competitive bidding would promote the expressed objectives of the Act.Q yO}-ԍ47 U.S.C.  309(j)(2) (1996).Q As amended by  d(#the Balanced Budget Act, Section 309(j) of the Communications Act provides that, "If . . . mutually  d(#exclusive applications are accepted for any initial license or construction permit, then, except as provided  Sl - d(#in paragraph (2) the Commission shall grant the license or permit to a qualified applicant through a system  S: -of competitive bidding that meets the requirements of this subsection.": h  yOB-ԍ47 U.S.C.  309(j)(1) (as amended by Balanced Budget Act,  3002) (emphasis added).  S - 3<61.` ` Decision. Several commenters support the use of competitive bidding.g  yOl- v LԍMariTEL Comments at 7 (urging the Commission to act as expeditiously as possible to license this spectrum  d(#using competitive bidding because it is the most efficient and speedy means of licensing multiple channels on a  d(#geographic basis); MariTEL Reply Comments at 3; Orion Comments at 10; BRC Reply Comments at n. 2 (noting  d(#that under the Balanced Budget Act, "the FCC must use auctions to award initial licenses and construction permits in virtually all cases where mutual exclusivity exists").g While some  d(#parties oppose the use of competitive bidding to grant licenses for the public coast spectrum, their  d(#contentions are inconsistent with our earlier conclusion that the public coast service is subject to  S<- d(#competitive bidding, which conclusion is unchanged by the Balanced Budget Act.o< yO -ԍGlobe Wireless Comments at 34; Robert Sassaman Comments at 1.o As noted, the  d(#zBalanced Budget Act provides that all licenses and construction permits for which mutually exclusive  d(#!applications are accepted, with certain exceptions not relevant here, shall be granted by means of  S- d(#Lcompetitive bidding.8 {O{$-ԍSee 47 U.S.C.  309(j)(1), 309(j)(2) (as amended by Balanced Budget Act,  3002). We therefore believe that we lack discretion to resolve mutually exclusive public  d(#.coast license applications by any means other than competitive bidding. Similarly, the Balanced Budget  d(#[Act expressly provides that competitive bidding shall not be used for public safety radio services, so the  d(#inland VPC channel pairs set aside for public safety use shall be distributed by other means, to be decided" ,l(l(,,^"  S- d(#as part of our pending public safety proceeding.J {Oh-ԍSee supra note 100.J Therefore, we reiterate that we shall employ competitive bidding procedures to resolve mutually exclusive public coast station applications.  Sg- 2.` ` Competitive Bidding Issues   S-  3=62.` ` Proposal. The Second Further Notice was released shortly after the Part 1 Order and  S- d(#Notice of Proposed Rulemaking that adopted certain rules to streamline auction procedures and proposed  S- d(#uniform competitive bidding rules that would apply generally to all auctionable services.+Z {O - v .ԍSecond Further Notice, 12 FCC Rcd at 17011 (citing Amendment of the Commission's Competitive Bidding  {Oa -Rules, Order and Notice of Proposed Rulemaking, WT Docket No. 9782, 12 FCC Rcd 5686 (1997)).+ Pending the  d(#adoption of final uniform competitive bidding rules, however, the Commission proposed to adopt service S7- d(#specific rules to govern public coast auctions.:7 {O -ԍId.: In addition, it sought comment in the Second Further  S- d(#?Notice on the establishment of a "small business" definition for public coast spectrum, noting our  S- d(#.intention, as iterated in the Second Memorandum Opinion and Order in the competitive bidding docket,  S - d(#of establishing definitions for "small business" on a servicebyservice basis.^ H {O- v nԍSecond Further Notice, 12 FCC Rcd at 17012 (citing Implementation of Section 309(j) of the  {OS- d(#JCommunications Act Competitive Bidding, Second Memorandum Opinion and Order, PP Docket No. 93253, 9  {O-FCC Rcd 7245, 726869 (1994)); see also Part 1 Third Report and Order, 13 FCC Rcd at 388. Specifically, the  d(#Commission sought comment on whether we should apply one of the existing "small business" definitions  d(#to public coast stations or adopt a new definition, and comment on what small business provisions and  S - d(#terms should be offered to public coast small business licensees.b n  {O-ԍSecond Further Notice, 12 FCC Rcd at 17012.b The Commission tentatively concluded  d(#.that, for purposes of determining small business status of public coast applicants, it would attribute the  d(#gross revenues of all the applicants' affiliates, its controlling principals, and their affiliates, and that the  d(#/definition of affiliate in the public coast context should include an exception for Indian tribes, Alaska  S<- d(#Region, and Village Corporations.:<  {O-ԍId.: The Commission also tentatively decided against providing special  S -consideration in the competitive bidding procedures for incumbent licensees.G   {O;-ԍId. at 1689890.G  S- `>63.` ` In authorizing the Commission to use competitive bidding, Congress mandated that we  d(#"ensure that small businesses, rural telephone companies, and businesses owned by members of minority  S=- d(#<groups and women are given the opportunity to participate in the provision of spectrumbased services."M=$ yO#-ԍ47 U.S.C.  309(j)(4)(D).M  d(#Congress further provided that, in establishing eligibility criteria and bidding methodologies, the  d(#^Commission shall promote "economic opportunity and competition . . . by avoiding excessive  d(#>concentration of licenses and by disseminating licenses among a wide variety of applicants, including  d(#=small businesses, rural telephone companies, and businesses owned by members of minority groups and"q,l(l(,,^"  S- d(#women."M yOh-ԍ47 U.S.C.  309(j)(3)(B).M The Commission therefore sought comment in the Second Further Notice on whether small  d(#business provisions are sufficient to promote participation by businesses owned by minorities and women  S- d(#and rural telephone companies.bX {O-ԍSecond Further Notice, 12 FCC Rcd at 17012.b To the extent that commenters proposed additional provisions to ensure  d(#participation by minority and womenowned businesses, they were invited also to address how such  S5-provisions should be crafted to meet the relevant standards of judicial review.5 {O- v yԍId. at 1701213 (citing United States v. Virginia, 116 S.Ct. 2264 (1996); Adarand Constructors v. Pe9a, 115 S.Ct. 2097 (1995)).  S- `?64.` ` Decision. Recently, we adopted the Part 1 Third Report and Order, which establishes  d(#a uniform set of provisions, based on our experience with auctions to date, and allows us to conduct future  Sj- d(#auctions in a more consistent, efficient, and effective manner.{jD {ON-ԍSee Part 1 Third Report and Order, 13 FCC Rcd at 37781.{ Therefore, we will follow the uniform  S7- d(#provisions adopted in the Part 1 Third Report and Order for most of the competitive bidding issues raised  S- d(#in the Second Further Notice, and the uniform competitive bidding rules found in Subpart Q of Part 1 of  d(#the Commission's rules will apply to the auction of public coast spectrum. Consistent with this approach,  d(#matters such as the appropriate competitive bidding design for the auction of public coast spectrum, as  d(#well as minimum opening bids or reserve prices and maximum bid increments, will be determined by the  S: - d(#zWireless Telecommunications Bureau pursuant to its delegated authority.:  {O-ԍSee, e.g., id. at 44849, 45455; see also 47 C.F.R.  0.131(c), 0.331, 0.332.Ĥ In this Third Report and  S - d(#=Order and Memorandum Opinion and Order, however, we adopt servicespecific provisions applicable  S - d(#to designated entities bidding in the public coast spectrum auctions. We note, however, that we may seek  d(#comment in a future proceeding regarding whether these provisions should be modified for auctions of  Sp-spectrum allocated to the high seas and AMTS services.Hph  {Ox-ԍSee supra note 3.H  S -  @65.` ` As we noted in the Second Further Notice, our goal in adopting special small business  d(#provisions is to promote and facilitate the participation of small businesses in the public coast auctions  S- d(#and in the provision of service.b  {O?-ԍSecond Further Notice, 12 FCC Rcd at 17012.b For purposes of public coast auctions, we will define "small" businesses  d(#as entities that, together with controlling interests and affiliates, have average gross revenues for the  S?- d(#preceding three years not to exceed fifteen million dollars.\?  {Ok!- v jԍThis formulation is consistent with our determination in the Part 1 Third Report and Order that our service d(#specific small business definitions will be expressed in terms of average gross revenues for the preceding three years  {O"-"not to exceed" particular amounts. See Part 1 Third Report and Order, 13 FCC Rcd at 38889. We will define "very small" businesses as  d(#!entities that, together with controlling interests and affiliates, have average gross revenues for the  d(#preceding three years not to exceed three million dollars. MariTEL proposes that small businesses be  d(#/defined as those with gross revenues not exceeding three million dollars (averaged over the past three  d(#years), because the Commission has employed this standard elsewhere and it represents the level of  d(#yincome a small business in the Maritime Services today can expect to produce, while a higher level would"@ ,l(l(,,^"  S- d(# allow larger companies to compete with the same bidding credits as current public coast licensees. yOh- v ԍ#C\  P6QP#MariTEL Comments at 1516 (noting the size standards employed in paging, the upper 10 MHz of 800 MHz SMR, and 900 MHz SMR).  d(#MHowever, we share the concern of Orion and Murray Cohen that a single definition of small business  d(#could effectively exclude from participation a number of current licensees that are too small to compete  Sg- d(#with large wellcapitalized entities unless they are made eligible for additional bidding credits.bg  yO'-ԍOrion Comments at 10; Murray Cohen Comments at 1.b Also,  d(#we note that all of the services MariTEL cited as precedent for using a three million dollar standard also  d(#featured a second tier with a threshold of not more than fifteen million dollars in gross revenues. Thus,  d(#ywe believe that two tiers of bidding credits will allow current public coast licensees to compete favorably  d(# with larger entities, without denying entities with relatively small gross revenues the opportunity to participate meaningfully in the auctions.  S-  A66.` ` We decided in the Part 1 Third Report and Order to continue to define small businesses  S- d(#kas we have in the past, based on the characteristics and capital requirements of the specific service,l {O -ԍSee Part 1 Third Report and Order, 13 FCC Rcd at 388.l  S - d(#rather than, as suggested by MariTEL, on the prospective and likely applicants' assets.G B yO- v ԍ#C\  P6QP#MariTEL Comments at 15 (citing Implementation of Section 309(j) of the Communications Act  {OG-Competitive Bidding, Fifth Memorandum Opinion and Order, PP Docket No. 93253, 10 FCC Rcd 403 (1994)).G This approach  d(#jhas afforded us desirable flexibility to benefit small businesses, and is consistent with the Small Business  S7 - d(#Administration's practice of approving small business size standards on a servicebyservice basis.7  {Os-ԍ#C\  P6QP#See Part 1 Third Report and Order, 13 FCC Rcd at 388. We  S - d(#determined in the Part 1 Third Report and Order that our servicespecific small business definitions  d(#?thenceforth would be expressed in terms of average gross revenues, which we believe provides an  S - d(#accurate, equitable, and easily ascertainable measure of business size.v .  {Om-ԍ#C\  P6QP#See id. at 38889.v Assets, being potentially fluid  Sl- d(#and subject to inconsistent valuation (e.g., intangibles), are generally much less ascertainable than gross  d(#.revenues or numbers of employees. Although we have adopted an asset test for eligibility for particular  d(#[blocks of licenses in broadband PCS auctions, we have never before employed an asset test for eligibility  d(#for small business size standards. We also note that the Small Business Administration, the rules of which  d(#have formed the basis for much of our own consideration of small business provisions, presently does not  d(#=employ asset tests in its business size standards except in the context of national and commercial banks,  S;- d(#savings institutions, and credit unions.;  {O -ԍ#C\  P6QP#See 13 C.F.R.  121.201, Standard Industrial Classifications 60216082 & n. 7. Nor does the Small Business Act's statutory definition of small  S- d(#jbusiness size use a total assets test.xR  {O"-ԍ#C\  P6QP#See 15 U.S.C.  632(c).x Consistent with the Part 1 Third Report and Order, we therefore reject MariTEL's suggestion and will not adopt an asset test for the auction of public coast licenses.  Sp-  2B67.` ` Since we received no comments to the contrary, we also adopt, with a slight modification,  d(#our tentative conclusion to attribute the gross revenues of the applicant, its controlling principals and their  d(#affiliates. Specifically, we refer to "controlling interests" rather than "controlling principals." In addition," !,l(l(,,^"  d(#]we provide a definition of "controlling interest" to clarify the application of the attribution rule in  d(#determining whether an entity qualifies to bid as a small business. In calculating gross revenues for  d(#purposes of small business eligibility, applicants will be required to count the gross revenues of the  Sg- d(#controlling interests of the applicant and their affiliates.&g {O- v ԍWe note that in the Part 1 Third Report and Order, we exempted Indian Tribes and Alaska Region and  {O- d(#wVillage Corporations from the definition of affiliate found in Part 1, Subpart Q of our rules. See Part 1 Third Report  {Oc- d(# and Order, 13 FCC Rcd at 39293. This definition will apply in the public coast auction. See 47 C.F.R. 1.2111(b)(4)(xi).  This approach is consistent with our proposal  S4- d(#in the Part 1 Second Further Notice,o4 {O -ԍSee Part 1 Third Report and Order, 13 FCC Rcd at 47778.o and is similar to the attribution rules we have employed for the  S-recent LMDS and 800 MHz SMR auction proceedings.H {O - v #C\  P6QP#э See Amendment of Parts 1, 2, 21, and 25 of the Commission's Rules to Redesignate the 27.529.5 GHz  d(#Frequency Band, to Reallocate the 29.530.0 GHz Frequency Band, to Establish Rules and Policies for Local  {O| - d(#Multipoint Distribution Service and for Fixed Satellite Services, Second Report and Order, Order on Reconsideration,  {OF- d(#and Fifth Notice of Proposed Rulemaking, CC Docket No. 92297, 12 FCC Rcd 12545, 1269293 (1997);  yO- d(#ZAmendment of Part 90 of the Commission's Rules to Facilitate Future Development of SMR Systems in the 800  {O- d(#MHz Frequency Band, FCC 97-223, Second Report and Order, PR Docket No. 93144, 12 FCC Rcd 19079, 19169 (1997).   S- ~C68.` ` A "controlling interest" includes individuals or entities with de jure and de facto control  Sj- d(#Nof the applicant. De jure control is 50.1% of the voting stock of a corporation or, in the case of a  S8- d(#partnership, the general partners. De facto control is determined on a casebycase basis, and includes the  S- d(#[criteria set forth in Ellis Thompson.r  {O6- v >ԍSee Ellis Thompson Corp., 76 Rad. Reg. 2d (P & F) 1125, 112728 (1994) ("Ellis Thompson"), in which  d(#the Commission identified the following factors used to determine control of a business:(1) use of facilities and  d(#equipment; (2) control of daytoday operations; (3) control of policy decisions; (4) personnel responsibilities; (5)  {O- d(#control of financial obligations; and (6) receipt of monies and profits. See also Intermountain Microwave, 24 Rad.  {OZ- d(#ZReg. (P & F) 983 (1963); Stephen F. Sewell, Assignments and Transfers of Control of FCC Authorizations Under  {O$-Section 309(d) of the Communications Act of 1934, 43 Fed. Comm. L.J. 277 (1991).r We recently sought comment in the Part 1 Second Further Notice  S- d(#-on whether we should impose a minimum equity requirement (e.g., fifteen percent) on any person or entity  S - d(#jidentified as a controlling interest.r  {OR-ԍSee Part 1 Third Report and Order, 13 FCC Rcd at 478.r The "controlling interest" definition also provides specific guidance  d(#>on calculation of various types of ownership interests. For purposes of calculating equity held in an  d(#\applicant, the definition provides for full dilution of certain stock interests, warrants, and convertible  S - d(#kdebentures.  {OK!-#C\  P6QP#эSee 47 C.F.R.  1.2110(b)(4)(v); cf. 47 C.F.R.  24.709(b)(7). In addition, the definition provides for attribution of partnership and other ownership  d(#0interests including stock interests held in trust, nonvoting stock, and indirect ownership through  d(#yintervening corporations. Once principals or entities with a controlling interest are determined under the  d(#definition, only the revenues of those principals or entities and their affiliates will be counted for small business eligibility.  S- D69.` ` When an applicant cannot identify controlling interests under the definition, the revenues  S- d(#of all interest holders in the applicant and their affiliates will be counted. For example , if a company is""4,l(l(,,^"  d(#Nowned by four entities, each of which has twentyfive percent voting equity and no shareholders'  d(#.agreement or voting trust gives any one of them control of the company, the revenues of all four entities  d(#must be counted. Treating such a corporation in this way is similar to our treatment of a general  d(#partnership"all general partners are considered to have a controlling interest. This rule, we believe, looks to substance over form in assessing eligibility for small business status.  S-  E70.` ` We note that our intent here is to provide flexibility that will enable legitimate small  d(#businesses to attract passive financing in a highly competitive and evolving telecommunications  Sh- d(#jmarketplace.h yO- v k#C\  P6QP#эWe note, however, that in seeking comment regarding the auction of initial licenses for certain broadcast  d(#stations, the Commission has proposed stricter attribution standards and eligibility requirements for applicants seeking  {O` - d(#to qualify for minoritybased provisions. See Implementation of Section 309(j) of the Communications Act  {O* - d(#Competitive Bidding for Commercial Broadcast and Instructional Television Fixed Service Licenses, Notice of  {O -Proposed Rulemaking, MM Docket No. 97234, 12 FCC Rcd 22363, 22399401 (1997). We believe that this controlling interest threshold will function effectively to ensure that  d(# only those entities truly meriting small business status are eligible for small business provisions. In  S- d(#particular, we believe that the de jure and de facto concepts of control used to determine controlling  d(#interest in an applicant and the application of our affiliation rules will effectively prevent larger firms from  S - d(#illegitimately seeking status as a small business. Moreover, as we discussed in the Part 1 Third Report  Sk - d(#=and Order, we believe that requiring detailed ownership information will ensure that applicants claiming  d(#small business status qualify for such status, and ensure compliance by all applicants with spectrum caps  S - d(#and other ownership limits. ~ {O$-ԍ#X\  P6G;P#Part 1 Third Report and Order, 13 FCC Rcd at 419. Therefore, we emphasize that bidders will be subject to the ownership  S -disclosure requirements set forth in Section 1.2112 of our rules.Q  {O-ԍSee 47 C.F.R.  1.2112.Q  Sm- F71.` ` MariTEL and Ross contend that incumbent public coast service licensees should be given  d(#special consideration in our competitive bidding procedures, because incumbent licensees merely extending  d(#ktheir coverage would provide service sooner than new geographic area licensees, and the public safety  S- d(#nature of the public coast service mandates procedures that will lead to prompter service.c yO-ԍMariTEL Comments at 34; Ross Comments at 3.c We agree  S- d(#with BRC,I2  yOs-ԍBRC Reply Comments at 2.I however, that new entrants and incumbents should have an equal opportunity to obtain  Sn- d(#=spectrum.]n  {O- v ԍSee, e.g., Amendment of Parts 21 and 74 of the Commission's Rules with Regard to Filing Procedures in  {O - d(#Jthe Multipoint Distribution Service and in the Instructional Television Fixed Service, Report and Order, PR Docket  d(#No. 94131, 10 FCC Rcd 9589, 9607 (1995) (it is in the public interest to encourage the widest possible variety of  d(#applicants by not giving a preference to incumbents, for new entrant may value the spectrum more highly than existing licensee).] Moreover, we have never given incumbents such a benefit (which appears to be prohibited  d(#-by Section 309(j)(4)(D) of the Communications Act), and any incumbents that qualify can avail themselves  S-of the special consideration available to small businesses.Mv yO&-ԍ47 U.S.C.  309(j)(4)(D).M "#,l(l(,,C^"Ԍ S- G72.` ` In addition, we note that we received no comments suggesting any particular level of  d(#bidding credits. Thus, we will conform our bidding credit levels for the public coast auctions to the  S- d(#>schedule adopted in the Part 1 Third Report and Order. {O-ԍ#C\  P6QP#Part 1 Third Report and Order, 13 FCC Rcd at 40203. Specifically, the Part 1 Third Report and  Sh- d(#yOrder adopted bidding credits of thirtyfive percent for entities with annual gross revenues not to exceed  d(#three million dollars, and twentyfive percent for entities with annual gross revenues not to exceed fifteen  S- d(#million dollars.iZ {O-ԍ#C\  P6QP#Id. at 404.i In conformity with the small business size definitions that we adopt herein, we thus  d(#Ldetermine that entities that, together with controlling interests and affiliates, have average gross revenues  d(#for the preceding three years not to exceed three million dollars will receive a thirtyfive percent bidding  d(#.credit, and entities that, together with controlling interests and affiliates, have average gross revenues for  d(#the preceding three years not to exceed fifteen million dollars will receive a twentyfive percent bidding  S- d(#=credit. In addition, in the Part 1 Third Report and Order, we held that installment payments will not be  d(#used in the immediate future as a means of financing small business participation in Commission auctions,  S - d(#yand we received no comment in this proceeding on the use of installment payments.E  {O+-ԍId. at 39798.E Thus, installment  Sl - d(#payments will not be available to public coast auction participants for the reasons discussed in the Part  S: -1 Third Report and Order.  S - H73.` ` We also received no comments on whether small business provisions are sufficient to  d(#promote participation by businesses owned by minorities and women and rural telephone companies. No  d(#commenter proposed additional provisions to ensure participation by minority and womenowned  d(#[businesses, or suggested how such provisions should be crafted to meet the relevant standards of judicial  d(#review. We remain committed to meeting the statutory objectives of promoting economic opportunity and  d(#competition, of avoiding excessive concentration of licenses, and of ensuring access to new and innovative  d(#technologies by disseminating licenses among a wide variety of applicants, including small businesses,  d(#rural telephone companies, and businesses owned by members of minority groups and women. However,  d(#commenters in this proceeding have submitted no suggestions, evidence, or data to support race or  d(#genderbased auction provisions. Therefore, we conclude that we do not have a sufficient record to  S- d(#support such special provisions at this time. As we noted in the Part 1 Third Report and Order, we have  d(#]commenced a series of studies, and have other studies in the planning process, to examine barriers  Sr- d(#encountered by minorities and women in the auctions process and the secondary market for licenses.Gr~ {O- v .#C\  P6QP#эId. at 38687 & n. 36 (citing, e.g., Section 257 Proceeding to Identify and Eliminate Market Entry Barriers  {OZ-for Small Business, Report, GN Docket No. 96113, 12 FCC Rcd 16802 (1997)).G  d(#MOnce those studies are complete, we will have a more extensive record to judge our ability to provide  d(#through our auctions program economic opportunity among businesses owned by members of minority  S- d(#groups and women, as required in Section 309(j).[ {OS"-ԍSee 47 U.S.C.  309(j)(4)(C),(D).[ We also believe that our standardization, through the  S- d(#Part 1 Third Report and Order, of the rules regarding definitions of eligible entities, unjust enrichment,  d(#and bidding credits will assist small, minority and womenowned businesses because the resulting  SA-predictability will facilitate effective business planning and capital accumulation.Al  {OM&-ԍ#C\  P6QP#See Part 1 Third Report and Order, 13 FCC Rcd at 386. "$ ,l(l(,,^"Ԍ S-   +IV. PROCEDURAL MATTERS ׃  S- A.` ` Suspension of Acceptance and Processing of Applications   S4- oI74.IVIVAIVIVAIVIVA` ` In the Second Further Notice, the Commission temporarily suspended, until March 17,  d(#.1998, acceptance of public coast station and PLMR applications for new licenses to use VHF spectrum  d(#(156162 MHz), amendments to such applications, applications to modify existing licenses, and  d(#amendments to such modifications, except applications involving renewals, transfers, assignments, and  d(#Lmodifications that proposed neither to (1) expand a station's service area nor (2) obtain additional public  S6- d(#coast VHF spectrum.b6 {O -ԍSecond Further Notice, 12 FCC Rcd at 17015.b It also suspended the processing of public coast station applications to use VHF  S- d(#spectrum that were pending when the Second Further Notice was adopted, except those (1) that were not  S- d(#ymutually exclusive with other applications as of the date the Second Further Notice was adopted, and (2)  S - d(#as to which the relevant period for filing competing applications had expired as of that date.: Z {O -ԍId.: On March  d(#17, 1998, the Wireless Telecommunications Bureau extended the suspension until the effective date of the  S9 -final rules adopted in this Third Report and Order and Memorandum Opinion and Order.9  {O- v ԍApplications for Very High Frequency (VHF) Public Coast Spectrum in the 156162 MHz Bands, Order, 13 FCC Rcd 5240, 5241 (WTB 1998).  S -  J75.` ` Due to the transition to geographic area licensing in this Third Report and Order and  S - d(#Memorandum Opinion and Order, all applications to use VHF public coast spectrum the processing of  d(#which was suspended shall be dismissed. This action is consistent with the general approach we have  S=- d(#taken in other services where we have transitioned to geographic area licensing and auction rules.{=F {O#-ԍSee, e.g., Paging Second Report and Order, 12 FCC Rcd at 2739.{ In  d(#jaddition, the freeze on filing new applications to use this spectrum shall remain in effect beyond the date  d(#`that the final rules adopted herein become effective, and until such time as the Wireless  d(#LTelecommunications Bureau begins to accept applications for the VHF public coast auction. We decline  d(#jthe suggestion of UTC and ITA/CICS to lift the freeze on PLMR applications proposing to share public  S>- d(#coast VHF spectrum.]> yO-ԍUTC Comments at 4; ITA/CICS Comments at 56.] They contend that such licenses present no barrier to the proposed geographic  d(#licensing process or to existing or future maritime services, but we conclude that maintaining the freeze  d(#in all areas for all applicants is necessary for the orderly and effective implementation of the decisions made in this proceeding.  S?-  K76.` ` In the Part 1 Third Report and Order, the Commission delegated to the Chief of the  d(#Wireless Telecommunications Bureau authority to prescribe and set forth procedures for individual  S- d(#auctions.hh  {O#-ԍPart 1 Third Report and Order, 13 FCC Rcd at 484.h The Wireless Telecommunications Bureau shall implement auction procedures for VHF (156 d(#162 MHz) public coast stations, including the general design and timing of the auctions; the number and  d(#grouping of authorizations to be offered in a particular auction; the manner of submitting bids; the amount  d(#of bid increments; activity and stopping rules; and application and payment requirements, including the  S-amount of upfront payments; and shall announce such procedures by Public Notice. "% ,l(l(,,^"Ԍ S-ԙ B.` ` Additional Matters   S- BL77.IVBIVBIVB` ` In the Second Report and Order, the Commission deleted the operator requirement for  d(#radiotelephone coast stations, but declined to address MMR's suggestion to delete the radiotelegraph coast  S5- d(#=station operator requirement.g5 {O-ԍSecond Report and Order, 12 FCC Rcd at 1697677.g The Commission stated that it would request comments on the issue in  S- d(#.the Second Further Notice, but it inadvertently failed to do so.:Z {O-ԍId.: MMR again has suggested eliminating  S- d(#.the operator requirement for radiotelegraph coast stations,C yO\ -ԍMMR Comments at 8.C but we cannot act on the proposal because  S- d(#potentially affected parties have not received adequate notice.| {O - v ԍMCI Telecommunications Corp. v. FCC, 57 F.3d 1136, 1142 (D.C. Cir. 1995); AFLCIO v. Donovan, 757 F.2d 330, 33940 (D.C. Cir. 1985). We conclude that this issue presently is not ripe for decision, but we may revisit it at a later time.  S- C.` ` Regulatory Flexibility Act    S - ~M78.IVCIVCIVC` ` 5BAppendix B contains a Final Regulatory Flexibility Analysis with respect to this Third  Sl -Report and Order and Memorandum Opinion and Order.  S - D.` ` Paperwork Reduction Act of 1995 Analysis    S - N79.IVDIVDIVD` ` This Third Report and Order and Memorandum Opinion and Order contains neither a new  So-nor a modified information collection.  S - E.` ` Ordering Clauses   S- oO80.IVEIVEIVE` ` Authority for issuance of this Third Report and Order and Memorandum Opinion and  Sq- d(#Order is contained in Sections 4(i), 4(j), 7(a), 303(b), 303(f), 303(g), 303(r), 307(e), 332(a), and 332(c)  d(#/of the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 154(j), 157(a), 303(b), 303(f), 303(g), 303(r), 307(e), 332(a), and 332(c).  S-  P81.` ` Accordingly, IT IS ORDERED that Parts 20, 80, and 90 of the Commission's Rules, 47 C.F.R. Parts 20, 80, 90, and 95, ARE AMENDED as specified in Appendix F.  S -  Q82.` ` IT IS FURTHER ORDERED that, except for the dismissal set forth in paragraph 83 and  S- d(#Mthe temporary suspension set forth in paragraph 84, this Third Report and Order and Memorandum  S-Opinion and Order will be effective 60 days after publication in the Federal Register.  SC- BR83.` ` IT IS FURTHER ORDERED that, effective July 6, 1998, pending applications to use  d(#public coast station spectrum under Parts 80 or 90 of the Commission's Rules, 47 C.F.R. Parts 80 and 90  S- d(#that were held in abeyance pursuant to the Second Report and Order and Second Further Notice of  S- d(#Proposed Rulemaking and Applications for Very High Frequency (VHF) Public Coast Spectrum in the  Sy-156162 MHz Bands, Order, DA 98522 (WTB released Mar. 17, 1998), ARE DISMISSED. "G&,l(l(,,"^"Ԍ S-  S84.` ` IT IS FURTHER ORDERED that, effective July 6, 1998, no new applications to use VHF  d(#ypublic coast station spectrum under Parts 80 or 90 will be accepted for filing, except applications that do  d(#not propose to (1) expand a station's service area, or (2) obtain additional public coast spectrum  d(#frequencies, until the Wireless Telecommunications Bureau begins to accept applications to participate in the VHF public coast auction, which shall be announced by Public Notice.  S- T85.` ` IT IS FURTHER ORDERED that the Commission's Office of Public Affairs, Reference  S- d(#=Operations Division, SHALL SEND a copy of this Third Report and Order and Memorandum Opinion  Si- d(#and Order, including the Final Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business Administration.  S- AU86.` ` IT IS FURTHER ORDERED, pursuant to Section 1.46(b) of the Commission's Rules, 47  d(#MC.F.R. 1.46(b), that the Motion to Accept LateFiled Comments filed by MariTEL Corporation IS GRANTED.  S - _V87.` ` IT IS FURTHER ORDERED that Orion Telecom's Petition to Set Aside the Coast Guard Petition for Rule Making IS DENIED.  Sl- W88.` ` IT IS FURTHER ORDERED that the Petition for Reconsideration filed by MariTEL Corporation IS DENIED.  S- F.` ` Contact for Information   Sm- X89.IVFIVFIVF` ` 5GFor further information, contact Scot Stone of the Wireless Telecommunications Bureau,  d(#Public Safety and Private Wireless Division, Policy and Rules Branch, at (202) 4180680 or via EMail  d(#to "sstone@fcc.gov"; or Anne Napoli of the Wireless Telecommunications Bureau, Auctions and Industry Analysis Division, Legal Branch, at (202) 4180660 or via Email to "anapoli@fcc.gov". X` `  FEDERAL COMMUNICATIONS COMMISSION(#  ` `  Magalie Roman Salas ` `  Secretary"o',l(l(,,^"  S-  (i S- #&J\  P6Qx&P#Federal Communications Commission`(#sFCC 9851 ă  yx}dddy (#f\  PCx&P#] APPENDICES ׃  S- &  APPENDIX A LIST OF COMMENTERS א\  R4- Comments  American Waterways Operators Association of PublicSafety Communications OfficialsInternational, Inc. (APCO) Murray Cohen ForestryConservation Communications Association (FCCA) Globe Wireless  d(#Industrial Telecommunications Association and Council of Independent Communications Suppliers (ITA/CICS) WJG MariTEL Corporation (MariTEL) Mobile Marine Radio, Inc. (MMR) State of Montana National Association of Broadcasters and Association for Maximum Service Television (NAB/MSTV) National Marine Electronics Association (NMEA) Fred Daniel d/b/a Orion Telecom (Orion) Paging Systems, Inc. (PSI) Ross Engineering Company (Ross) Robert H. Sassaman United States Coast Guard (Coast Guard) UTC  R8- Reply Comments  BR Communications (BRC) Globe Wireless ITA/CICS MariTEL NAB/MSTV Orion Ross Coast Guard"(,l(l(,, ^"  S- / APPENDIX B FINAL REGULATORY FLEXIBILITY ANALYSIS ׃  v As required by the Regulatory Flexibility Act (RFA), an Initial Regulatory Flexibility Analysis  Sg- d(#k(IRFA) was incorporated into the Second Further Notice of Proposed Rule Making in this proceeding  S5- d(#(Second Further Notice). The Commission sought written public comment on the proposals in the Second  S- d(#/Further Notice, including comment on the IRFA. This present Final Regulatory Flexibility Analysis (FRFA) conforms to the RFA.  Sk- A.Need for, and Objectives of, the Third Report and Order  S- v Our objective is to simplify our licensing process for VHF public coast stations. Specifically, this  d(#>action will: (1) convert licensing of VHF public coast station spectrum from sitebysite licensing to  d(#geographic area licensing, (2) simplify and streamline the VHF public coast spectrum licensing procedures  d(#and rules, (3) increase licensee flexibility to provide communication services that are responsive to  d(#Mdynamic market demands, and (4) introduce marketbased forces into the Maritime Services by using  d(#\competitive bidding procedures (auctions) to resolve mutually exclusive applications for public coast  d(#\spectrum. We find that these actions will increase the number and types of communications services  d(# available to the maritime community and improve the safety of life and property at sea, and that the  d(#potential benefits to the maritime community exceed any negative effects that may result from the  d(#promulgation of rules for this purpose. Thus, we conclude that the public interest is served by amending our rules as described above.  S- B.Summary of Significant Issues Raised by Public Comments in Response to the IRFA  S;- v No comments were submitted in response to the IRFA. In general comments on the Second  S - d(#.Further Notice, however, some small business commenters raised issues that might affect small business  d(#entities. In particular, some small business commenters argued that geographic licensing should be used  d(#only in certain areas; or that incumbent licensees be permitted to expand their systems before any auctions  d(#are held; or that license areas should be small enough to permit smaller licensees to participate in auctions,  d(#mso that small business do not have to bid for territory far exceeding their operating needs. The Commission carefully considered each of these comments in reaching the decision set forth herein.  S- C.Description and Estimate of the Number of Small Entities to Which Rules Will Apply  v The rules adopted herein will apply to licensees using public coast spectrum. The Commission  d(#has not developed a definition of the term "small entity" specifically applicable to public coast station  d(#licensees. Therefore, the applicable definition of small entity is the definition under the Small Business  d(#Administration rules applicable to radiotelephone service providers. This definition provides that a small  Ss- d(#kentity is any entity employing less than 1,500 persons. See 13 C.F.R.  121.201, Standard Industrial  d(#jClassification (SIC) Code 4812. Since the size data provided by the Small Business Administration does  d(#Lnot enable us to make a meaningful estimate of the number of current or prospective public coast station  d(#licensees which are small businesses, and no commenters responded to our request for information  d(#\regarding the number of small entities that use or are likely to use public coast spectrum, we used the  d(#-1992 Census of Transportation, Communications, and Utilities, conducted by the Bureau of Census, which  d(#=is the most recent information available. This document shows that only 12 radiotelephone firms out of  d(#a total of 1,178 such firms which operated during 1992 had 1,000 or more employees. There are over 100  d(#public coast station licensees. Based on the proposals contained herein, it is unlikely that more than 50  d(#licensees will be authorized in the future. Therefore, for purposes of our evaluations and conclusions in  d(#this FRFA, we estimate that there are approximately 150 public coast station licensees which are small businesses, as that term is defined by the Small Business Administration."C'),l(l(,,+^"Ԍ S-ԙ D.Description of Projected Reporting, Recordkeeping, and Other Compliance Requirements  v All small businesses that choose to participate in the competitive bidding for these services will  d(#jbe required to demonstrate that they meet the criteria set forth to qualify as small businesses, as required  d(#under Part 1, Subpart Q of the Commission's Rules, 47 C.F.R. Part 1, Subpart Q. Any small business  d(#applicant wishing to avail itself of small business provisions will need to make the general financial  d(#disclosures necessary to establish that the business is in fact small. Prior to auction each small business  d(#applicant will be required to submit an FCC Form 175, OMB Clearance Number 30600600. The  d(#estimated time for filling out an FCC Form 175 is 45 minutes. In addition to filing an FCC Form 175,  d(#each applicant will have to submit information regarding the ownership of the applicant, any joint venture  d(#arrangements or bidding consortia that the applicant has entered into, and financial information  d(#.demonstrating that a business wishing to qualify for bidding credits is a small business. Applicants that  d(#do not have audited financial statements available will be permitted to certify to the validity of their  d(#/financial showings. While many small businesses have chosen to employ attorneys prior to filing an  d(#application to participate in an auction, the rules are intended to enable a small business working with the  d(#information in a bidder information package to file an application on its own. When an applicant wins  d(#a license, it will be required to submit an FCC Form 494 (common carrier), which will require technical  d(#information regarding the applicant's proposals for providing service. This application will require information provided by an engineer who will have knowledge of the system's design.  S- v  E.Steps Taken to Minimize Significant Economic Impact on Small Entities, and Significant  S-Alternatives Considered  v The Commission in this proceeding has considered comments on ways to implement broad  d(#/changes to the Maritime Services rules. In doing so, the Commission has adopted alternatives which  d(#minimize burdens placed on small entities. First, it has decided to establish a presumption that regional  d(# licensees are telecommunications carriers, avoiding the need for small telecommunications to provide  d(#detailed information about their operations. Also, it has exempted by rule from the Channel 16 safety  d(#watch requirement public coast stations whose areas are served by government stations, replacing the prior  d(#jrequirement that such coast stations individually request an exemption. In addition, the Commission has eased the construction requirements for VHF public coast stations.  v The Commission considered and rejected several significant alternatives. It rejected the alternative  d(#of licensing all VHF public coast spectrum by Coast Guard District. Instead, it will license such spectrum  d(#in areas removed from major waterways by inland VHF Public Coast Station Area (VPCs), identical to  d(#/Economic Areas (EAs), allowing small entities there to participate in the auction without bidding for  d(#\territory far exceeding their operating needs. The Commission rejected the alternative of delaying the  d(#zauctions for the inland VPCs by holding frequencies open for public safety applications. Instead, the  d(#Commission designated public safety channels in advance. The Commission rejected the alternative of  d(#requiring each geographic area licensee to provide detailed information about the services it will offer, so  d(#the Commission could determine whether the licensee is a telecommunications carrier. Instead, the  d(#.Commission established a rebuttable presumption that geographic area licensees are telecommunications carriers, so only those seeking to avoid that classification need submit such information.  S<#- v {  The Commission will send a copy of the Third Report and Order and Memorandum Opinion and  S $- d(#Order, including this FRFA, in a report to be sent to Congress pursuant to the Small Business Regulatory  S$- d(#Enforcement Fairness Act of 1996, see 5 U.S.C.  801(a)(1)(A). In addition, the Commission will send  S%- d(#a copy of the Third Report and Order and Memorandum Opinion and Order to the Chief Counsel for  St&- d(#Advocacy of the Small Business. A copy of the Third Report and Order and Memorandum Opinion and  SB'-Order and FRFA (or summaries thereof) will be published in the Federal Register. See 5 U.S.C.  604(b)."B'*,l(l(,,+^"  S-   APPENDIX C VHF COAST STATION INFORMATION א\  S- The table below lists the public correspondence frequency pairs as set forth in 47 C.F.R.  80.371(c). O !4ddx Addx+( ( ( O F U  h  Channel number aCarrier frequency (MHz)U U  hhx   Ship transmith Coast transmitU U V hhx  24h 157.200h 161.800U U  hhx  25U h 157.250U h 161.850U U  hhx  26 h 157.300 h 161.900U U U  hhx  27 h 157.350 h 161.950U U  hhx  28T h 157.400T h 162.000U U  hhx  84h 157.225h 161.825U U T  hhx  85h 157.275h 161.875U U  hhx  86Sh 157.325Sh 161.925U U  hhx  87h 157.375h 161.975U e S hwx  88 w 157.425 w 162.025e  w S -" +,l(l(,,T"  S- APPENDIX D VHF PUBLIC COAST STATION AREA (VPC) INFORMATION ׃  S-VPC 1 (Northern Atlantic) consists of EAs 15, and 10.  Qh-  S5-VPC 2 (MidAtlantic) consists of EAs 9, 1123, 25, 42, and 46.  Q-  S-VPC 3 (Southern Atlantic) consists of EAs 24, 2634, 37, 38, 40, 41, and 174.  Q-  Sk- d(#VPC 4 (Mississippi River) consists of EAs 35, 36, 39, 4345, 4753, 67107, 113, 116120, 122125, 127, 130134, and 176.  S-VPC 5 (Great Lakes) consists of EAs 68, 5466, 108, and 109.  Sn -VPC 6 (Southern Pacific) consists of EAs 160165.  S -VPC 7 (Northern Pacific) consists of EAs 147 and 166170.  S -VPC 8 (Hawaii) consists of EA 172, 173, and 175.  S?-VPC 9 (Alaska) consists of EA 171.  S-VPC 10 (Grand Forks) consists of EA 110.  Su-VPC 11 (Minot) consists of EA 111.  S-VPC 12 (Bismarck) consists of EA 112.  S-VPC 13 (Aberdeen) consists of EA 114.  SF-VPC 14 (Rapid City) consists of EA 115.  S-VPC 15 (North Platte) consists of EA 121.  S|-VPC 16 (Western Oklahoma) consists of EA 126.  S-VPC 17 (Abilene) consists of EA 128.  S-VPC 18 (San Angelo) consists of EA 129.  SM-VPC 19 (OdessaMidland) consists of EA 135.  S -VPC 20 (Hobbs) consists of EA 136.  S"-VPC 21 (Lubbock) consists of EA 137.  S$-VPC 22 (Amarillo) consists of EA 138.  S%-VPC 23 (Santa Fe) consists of EA 139.  ST'-VPC 24 (Pueblo) consists of EA 140."T',,l(l(,,+"Ԍ S-ԙVPC 25 (DenverBoulderGreeley) consists of EA 141.  S-VPC 26 (Scottsbluff) consists of EA 142.  S6-VPC 27 (Casper) consists of EA 143.  S-VPC 28 (Billings) consists of EA 144.  Sl-VPC 29 (Great Falls) consists of EA 145.  S-VPC 30 (Missoula) consists of EA 146.  S -VPC 31 (Idaho Falls) consists of EA 148.  S= -VPC 32 (Twin Falls) consists of EA 149.  S -VPC 33 (Boise City) consists of EA 150.  Ss-VPC 34 (Reno) consists of EA 151.  S-VPC 35 (Salt Lake CityOgden) consists of EA 152.  S-VPC 36 (Las Vegas) consists of EA 153.  SD-VPC 37 (Flagstaff) consists of EA 154.  S-VPC 38 (Farmington) consists of EA 155.  Sz-VPC 39 (Albuquerque) consists of EA 156.  S-VPC 40 (El Paso) consists of EA 157.  S-VPC 41 (PhoenixMesa) consists of EA 158.  SK-VPC 42 (Tucson) consists of EA 159."K-,l(l(,,"  S-#\\  PC A` P## f\  PCx&P# ".,l(l(,,"  S- #f\  PCx&P#z APPENDIX E PUBLIC SAFETY SETASIDE ׃ O Addx+( ( ( addx/<< O e u  x   SB- Inland VPC   SB- Channels Set Aside for Public Safety u U  hx  10dh 84, 25U U  hhx  11h 84, 25U U d hhx  12h 84, 25U U  hhx  13ch 84, 25U U  hhx  14 h 84, 25U U c hhx  15 h 84, 25U U   hhx  16b h 25, 85U U   hhx  17 h 25, 85U  b  hx  18< 25, 85   J addx/<< ddx</<< J  u   x  19 25, 85u U < hx  20h 25, 85U U  hhx  21[h 25, 85U U  hhx  22h 25, 85U U [ hhx  23h 84, 25U U  hhx  24Zh 84, 25U U  hhx  25h 84, 25U U Z hhx  26h 84, 25U U  hhx  27Yh 84, 25U   hx  28 84, 25  Y J ddx</<< ddx/<< J  u Y x  29S 84, 25u U  hx  30h 84, 25U U S hhx  31 h 25, 85U U  hhx  32R"h 25, 85U U   hhx  33#h 84, 25U U R" hhx  34$h 84, 25U U # hhx  35Q&h 25, 85U U $ hhx  36'h 84, 25"&/,l(l(,,(n("U U Q& hhx  37Uh 84, 25U   hx  38 84, 25  U J ddx/<< ddx0<< J  u U x  39O 84, 25u U  hx  40h 25, 85U U O hhx  41h 84, 25U   hx  42~ 84, 25 "~0,l(l(,,S"  S-. APPENDIX F FINAL RULES א\  S-  Chapter I of Title 47 of the Code of Federal Regulations, Parts 20, 80, and 90 are amended as follows:  S-  I.` ` Part 20 Commercial Mobile Radio Services  S-1.` ` The authority citation for Part 20 continues to read as follows:  S5- AUTHORITY: Secs. 4, 2512, 303, and 332, 48 Stat. 1066, 1062, as amended; 47 U.S.C.  S-154, 25154, 303, and 332 unless otherwise noted.  S -2.` ` Section 20.9 is amended by revising paragraphs (b) and (b)(1) to read as follows:  S6 -  20.9 Commercial mobile radio service. * * * * *  Sj-(b)` ` Licensees of a Personal Communications Service or applicants for a Personal Communications Service license, and Public Coast Station licensees or applicants, proposing to use any Personal Communications Service or Public Coast Station spectrum to offer service on a private mobile radio service basis must overcome the presumption that Personal Communications Service and Public Coast Stations are commercial mobile radio services.  S8-(1)` ` The applicant or licensee (who must file an application to modify its authorization) seeking authority to dedicate a portion of the spectrum for private mobile radio service, must include a certification that it will offer Personal Communications Service or Public Coast Station service on a private mobile radio service basis. The certification must include a description of the proposed service sufficient to demonstrate that it is not within the definition of commercial mobile radio service in 20.3 of this chapter. Any application requesting to use any Personal Communications Service or Public Coast Station spectrum to offer service on a private mobile radio service basis will be placed on public notice by the Commission.  Sm-* * * * *  S-II.` ` Part 80 Stations in the Maritime Services   S-3.` ` The authority citation for Part 80 is amended to read as follows:     S;- AUTHORITY: Secs. 4, 303, 307(e), 309, and 332, 48 Stat. 1066, 1082, as amended; 47 U.S.C. 154, 303, 307(e), 309, and 332, unless otherwise noted. Interpret or apply 48 Stat. 10641068, 10811105, as amended; 47 U.S.C. 151155, 301609; 3 UST 3450, 3 UST 4726, 12 UST  S!-2377.  S<#-4.` ` Section 80.3 is amended by revising paragraph (b) to read as follows:  S$-  80.3 Other applicable rule parts of this chapter.  * * * * * "='1,l(l(,,+S"Ԍ S-(b) Part 1. This part includes rules of practice and procedure for license applications, adjudicatory proceedings, procedures for reconsideration and review of Commission actions; provisions concerning violation notices and forfeiture proceedings; and the environmental processing requirements that, if applicable, must be complied with prior to the initiation of construction. Subpart Q of Part 1 contains rules governing competitive bidding procedures for resolving mutually exclusive applications for certain initial licenses. * * * * *  S6-5. ` ` Section 80.25 is revised to read as follows:  S-  80.25 License term. * * * * *  S -(b)` ` Licenses other than ship stations in the maritime services will normally be issued for a term of five years from the date of original issuance, major modification, or renewal, except that licenses for VHF public coast stations will normally be issued for a term of ten years from the date of original issuance, major modification, or renewal. Licenses, other than Public Coast and Alaska Public Fixed stations, may be renewed up to ninety (90) days after the date the license expires. * * * * *  Sl-6.` ` Section 80.49 is revised to read as follows:  S- 80.49 Construction and regional service requirements.  S-(a) Public coast stations. (1) Each VHF public coast station geographic area licensee must make a showing of substantial service within its region or service area (subpart P) within five years of the initial license grant, and again within ten years of the initial license grant, or the authorization becomes invalid and must be returned to the Commission for cancellation. "Substantial" service is defined as service which is sound, favorable, and substantially above a level of mediocre service which just might minimally warrant renewal. For sitebased VHF public coast station licensees, when a new license has been issued or additional operating frequencies have been authorized, if the station or frequencies authorized have not been placed in operation within twelve months from the date of the grant, the authorization becomes invalid and must be returned to the Commission for cancellation. (2) For LF, MF, HF, and AMTS band public coast station licensees, when a new license has been issued or additional operating frequencies have been authorized, if the station or frequencies authorized have not been placed in operation within eight months from the date of the grant, the authorization becomes invalid and must be returned to the Commission for cancellation.  S>#-(b) Public fixed stations. When a new license has been issued or additional operating frequencies have been authorized, if the station or frequencies authorized have not been placed in operation within twelve months from the date of the grant, the authorization becomes invalid and must be returned to the Commission for cancellation.  S@'-7.` ` A new section 80.60 is added to read as follows:"@'2,l(l(,,+S"Ԍ S-  ę  80.60 Partitioned licenses and disaggregated spectrum.  S-(a) Eligibility. VHF Public Coast area (VPC) licensees, see  80.371(c)(1)(ii) of this part, may partition their geographic service area or disaggregate their spectrum pursuant to the procedures set forth in this section. Parties seeking approval for partitioning and disaggregation shall request an authorization for partial assignment pursuant to  1.924 of this chapter.  S-(b) Technical standards.  (1) Partitioning. In the case of partitioning, all requests for authorization for partial assignment of a license must include, as an attachment, a description of the partitioned service area. The partitioned service area shall be defined by coordinate points at every 3 degrees along the partitioned service area unless an FCCrecognized service area is utilized (e.g., Metropolitan Service Area, Rural Service Area, or Economic Area) or county lines are used. The geographic coordinates must be specified in degrees, minutes, and seconds to the nearest second of latitude and longitude, and must be based upon the 1983 North American Datum (NAD83). In a case where an FCCrecognized service area or county lines are utilized, applicants need only list the specific area(s) (through use of FCC designations or county names) that constitute the partitioned area.  S -(2) Disaggregation. Spectrum may be disaggregated in any amount, provided acquired spectrum is disaggregated according to frequency pairs.  S-(3) Combined partitioning and disaggregation. The Commission will consider requests for partial assignment of licenses that propose combinations of partitioning and disaggregation.  So-(c) License term. The license term for a partitioned license area and for disaggregated spectrum shall be the remainder of the original licensee's term as provided for in  80.25 of this part.  S-(d) Construction Requirements.   Sr-(1) Partitioning. Partial assignors and assignees for license partitioning have two options to meet construction requirements. Under the first option, the partitionor and partitionee would each certify that they will independently satisfy the substantial service requirement for their respective partitioned areas. If either licensee failed to meet its substantial service showing requirement, only the nonperforming licensee's renewal application would be subject to dismissal. Under the second option, the partitionor certifies that it has met or will meet the substantial service requirement for the entire market. If the partitionor fails to meet the substantial service standard, however, only its renewal application would be subject to forfeiture at renewal.  S-(2) Disaggregation. Partial assignors and assignees for license disaggregation have two options to meet construction requirements. Under the first option, the disaggregator and disaggregatee would certify that they each will share responsibility for meeting the substantial service requirement for the geographic service area. If parties choose this option and either party fails to do so, both licenses would be subject to forfeiture at renewal. The second option would allow the parties to agree that either the disaggregator or the disaggregatee would be responsible for meeting the substantial service requirement for the geographic service area. If parties choose this option, and the party responsible for meeting the construction requirement fails to do so, only the license of the nonperforming party would be subject to forfeiture at renewal.  S%-8.` ` Section 80.70 is amended by adding new subsection (c) as follows:  SE'-  80.70 Special provisions relative to coast station VHF facilities. "E'3,l(l(,,+S"Ԍ* * * * * (c) A VHF (156162 MHz) public coast station licensee initially authorized on any of the channels listed in the table in  80.371(c)(1)(i) of this part may transfer or assign its channel(s) to another entity. If the proposed transferee or assignee is the geographic area licensee for the geographic area to which the channel is allocated, such transfer or assignment will be deemed to be in the public interest. However, such presumption will be rebuttable.  Sh-9.` ` Section 80.105 is revised to read as follows:  S-  80.105 General obligations of coast stations. Each coast station or marineutility station must acknowledge and receive all calls directed to it by ship or aircraft stations. Such stations are permitted to transmit safety communication to any ship or aircraft station. VHF (156162 MHz) public coast stations may provide fixed or hybrid services on a coprimary basis with mobile operations.  S -10.` ` Section 80.303 is amended by revising paragraph (b) to read as follows:  S7-  80.303 Watch on 156.800 MHz (Channel 16). * * * * * (b) A coast station is exempt from compliance with the watch requirement when Federal, State, or Local Government stations maintain a watch on 156.800 MHz over 95% of the coast station's service area. Each licensee exempted by rule must notify the nearest district office of the U.S. Coast Guard at least thirty days prior to discontinuing the watch, or in the case of new stations, at least thirty days prior to commencing service. The Coast Guard may require any coast station to maintain the watch temporarily or permanently. The Coast Guard may also require any coast station to remain capable of either immediately resuming the watch or providing the Coast Guard direct dialup access to the necessary 156.800 MHz transceiver at no charge so that the Coast Guard can maintain the watch. * * * * *  S-11.` ` Section 80.371 is amended by revising paragraph (c) to read as follows:  S-  80.371 Public correspondence frequencies. * * * * *  S -(c) Working frequencies in the marine VHF 156162 MHz band. (1)(A) The frequency pairs listed in the table below are available for assignment to public coast stations for public correspondence communications with ship stations and units on land. * * * (B) Service areas in the marine VHF 156162 MHz band are VHF Public Coast areas (VPCs). As listed in the table below, VPCSAs are based on, and composed of one or more of, the U.S Department of Commerce's 172 Economic Areas (EAs). See 60 FR 13114 (March 10, 1995). In"='4,l(l(,,+S" addition, the Commission shall treat Guam and the Northern Mariana Islands, Puerto Rico and the United States Virgin Islands, American Samoa, and the Gulf of Mexico as EAlike areas, and has assigned them EA numbers 173176, respectively. Maps of the EAs and VPCSAs are available for public inspection and copying at the Public Safety and Private Wireless Division, room 8010, 2025 M Street, NW, Washington, DC. Except as shown below, the frequency pairs listed in paragraph (c)(1)( $ i $ ) of this section are available for assignment to a single licensee in each of the VPCs listed in the table below. In addition to the listed EAs listed in the table below, each VPC also includes the adjacent waters under the jurisdiction of the United States. E ddx0<< ddx55x E  x  2;VHF Public Coast areas (VPCs)5 J ddx55x ddx5( ( ( J   r  5 x  VPCs  EAs  Frequency Pairs Not Available for Assignmentr   T ddx5( ( ( !ddxL 5( ( ( T r  u  x  1 (Northern Atlantic)  15, 10  ܩu U L  hx  2 (MidAtlantic)h 9, 1123, 25, 42, 46h ܩU U   hhx  3 (Southern Atlantic)kh 24, 2634, 37, 38, 40, 41, 174kh ܩU   h*x  4 (Mississippi River)h 34, 36, 39, 4345, 4753, 67107, 113, 116120, 122125, 127, 130134, 176Z* ܩ U k *hx  5 (Great Lakes)h 68, 5466, 108, 109h ܩU U Z hhx  6 (Southern Pacific)h 160165h ܩU U  hhx  7 (Northern Pacific)Yh 147, 166170Yh ܩU U  hhx  8 (Hawaii)h 172, 173, 175h ܩU U Y hhx  9 (Alaska)h 171h ܩU U  hhx  10 (Grand Forks)Xh 110Xh 84, 25U U  hhx  11 (Minot)h 111h 84, 25U U X hhx  12 (Bismarck)h 112h 84, 25U U  hhx  13 (Aberdeen)Wh 114Wh 84, 25U U  hhx  14 (Rapid City)h 115h 84, 25U U W hhx  15 (North Platte)!h 121!h 84, 25U U  hhx  16 (Western Oklahoma)V"h 126V"h 25, 85U U ! hhx  17 (Abilene)#h 128#h 25, 85U U V" hhx  18 (San Angelo)%h 129%h 25, 85U U # hhx  19 (OdessaMidland)U&h 135U&h 25, 85U U % hhx  20 (Hobbs)'h 136'h 25, 85"&5,l(l(,,O)("U U U& hhx  21 (Lubbock)Uh 137Uh 25, 85U U  hhx  22 (Amarillo)h 138h 25, 85U U U hhx  23 (Santa Fe)h 139h 84, 25U U  hhx  24 (Pueblo)Th 140Th 84, 25U U  hhx  25 (DenverBoulderGreeley)h 141h 84, 25U U T hhx  26 (Scottsbluff)h 142h 84, 25U U  hhx  27 (Casper)S h 143S h 84, 25U U  hhx  28 (Billings) h 144 h 84, 25U U S  hhx  29 (Great Falls) h 145 h 84, 25U U   hhx  30 (Missoula)R h 146R h 84, 25U U   hhx  31 (Idaho Falls)h 148h 25, 85U U R  hhx  32 (Twin Falls)h 149h 25, 85U U  hhx  33 (Boise City)Qh 150Qh 84, 25U U  hhx  34 (Reno)h 151h 84, 25U U Q hhx  35 (Salt Lake CityOgden)h 152h 25, 85U U  hhx  36 (Las Vegas)Ph 153Ph 84, 25U U  hhx  37 (Flagstaff)h 154h 84, 25U U P hhx  38 (Farmington)h 155h 84, 25U U  hhx  39 (Albuquerque)Oh 156Oh 84, 25U U  hhx  40 (El Paso)h 157h 25, 85U U O hhx  41 (PhoenixMesa)h 158h 84, 25U    hx  42 (Tucson)~ 159~ 84, 25  ) (C) Subject to paragraph (c)(3) of this section, each licensee may also operate on 12.5 kHz offset frequencies in areas where the licensee is authorized on both frequencies adjacent to the offset frequency, and in areas where the licensee on the other side of the offset frequency consents to the licensee's use of the adjacent offset frequency. (2) Any recovered channel pairs will revert automatically to the holder of the VPC license within which such channels are included, except the channel pairs listed in the table in paragraph (c)(1)( $ ii $ ) of this section. Those channel pairs, and any channel pairs recovered where there is no VPC licensee, will be retained by the Commission for future licensing. (3) VPC licensees may not operate on Channel 228B (162.0125 MHz), which is available for use in the Coast Guard's Ports and Waterways Safety System (PAWSS)). In addition, within six"'6,l(l(,,)" months of the conclusion of the competitive bidding procedures to determine the licensees in each VPC, the U.S. Coast Guard shall submit to each licensee of VPCs 19 a plan specifying up to two narrowband channel pairs offset 12.5 kHz from the channels set forth in the table in paragraph (c)(1)( $ i $ ) of this section, for use in the PAWSS. The final selection of the PAWSS channel pairs can be negotiated (if the VPC licensee objects to the Coast Guard proposal, it shall make a counterproposal within three months) and established by an agreement between the parties. All parties are required to negotiate in good faith. If no agreement is reached within one year of the date the Coast Guard submitted its plan, the Coast Guard may petition the Commission to select the channel pairs. (4) Subject to the requirements of  80.21, each VPC licensee may place stations anywhere within its region without obtaining prior Commission approval provided: ( $ i $ ) It provides to cochannel coast station incumbent licensees, and incumbent Private Land Mobile Radio licensee authorized under part 90 of this chapter on a primary basis, protection as defined in subpart P of this part. VPC licensees that share a common border may either distribute the available frequencies upon mutual agreement or request that the Commission assign frequencies along the common border. ( $ ii $ ) The locations and/or technical parameters of the transmitters are such that individual coordination of the channel assignment(s) with a foreign administration, under applicable international agreements and rules in this part, is not required. ( $ iii $ ) For any construction or alteration that would exceed the requirements of 17.7 of this chapter, licensees must notify the appropriate Regional Office of the Federal Aviation Administration (FAA Form 74601) and file a request for antenna height clearance and obstruction marking and lighting specifications (FCC Form 854) with the FCC, Attn: Information Processing Branch, 1270 Fairfield Rd., Gettysburg, PA 173257245. ( $ iv $ ) The transmitters must not have a significant environmental effect as defined by  1.1301 through 1.1319 of this chapter. * * * * *  Sm-12.` ` Section 80.751 is amended to read as follows:  S-  80.751 Scope. This subpart specifies receiver antenna terminal requirements in terms of power, and relates the power available at the receiver antenna terminals to transmitter power and antenna height and gain. It also sets forth the cochannel interference protection that VHF public coast station geographic area licensees must provide to incumbents.  S!-13.` ` Section 80.773 is amended to read as follows:  S<#-  80.773 Cochannel interference protection. (a) Where a VHF public coast station geographic area licensee shares a frequency with an incumbent VHF public coast station licensee, the ratio of desired to undesired signal strengths must be at least 12 dB within the service area of the station. "='7,l(l(,,+"Ԍ(b) Where a VHF public coast station geographic area licensee shares a frequency with an incumbent private land mobile radio licensee, the VHF public coast station geographic area licensee must provide at least 10 dB protection to the PLMR incumbent's predicted 38 dBu signal level contour. The PLMR incumbent's predicted 38 dBu signal level contour is calculated using the F(50, 50) field strength chart for Channels 713 in  73.699 (Fig. 10) of this chapter, with a 9 dB correction factor for antenna height differential, and is based on the licensee's authorized effective radiated power and antenna heightaboveaverageterrain. The 10 dB protection to the incumbent's predicted 38 dBu signal level contour shall be calculated using the F(50, 10) field strength chart for Channels 713 in  73.699 (Fig. 10a) of this chapter, with a 9 dB correction factor for antenna height differential.  S-14.` ` New subpart Y is added to read as follows:  S - Subpart Y Competitive Bidding Procedures  S6 -  80.1251 Maritime communications services subject to competitive bidding.  S - 80.1252 Designated entities.   S -  80.1251 Maritime communications services subject to competitive bidding. Mutually exclusive initial applications for VPC licenses, high seas public coast station licenses, and AMTS coast station licenses are subject to competitive bidding procedures. The procedures set forth in part 1, subpart Q of this chapter will apply unless otherwise provided in this part.  Sk-  80.1252 Designated entities. (a) This section addresses certain issues concerning designated entities in maritime communications services subject to competitive bidding. Issues that are not addressed in this section are governed by the designated entity provisions in part 1, subpart Q of this chapter.  S9-X` (#%'0*,.8135@8: