FOR IMMEDIATE RELEASE:                  News Media Contact:
June 23, 2000                                Meribeth McCarrick at (202) 418-0654
                                        e-mail: mmccarri@fcc.gov 

             FCC ALLOWS LMDS ELIGIBILITY RESTRICTION 
                     TO SUNSET JUNE 30, 2000

     Washington, DC   The Federal Communications Commission has adopted a Third Report
and Order and Memorandum Opinion and Order which allows the Local Multipoint Distribution
Service (LMDS) eligibility restriction to sunset on June 30, 2000.  The FCC determined that
allowing the eligibility restriction to sunset will promote the public interest.  

The LMDS eligibility restriction was adopted in 1997 and prohibits incumbent local exchange
carriers and incumbent cable companies from having an attributable interest in the LMDS A block
license that overlaps with ten percent or more of the population in their service areas.  

Specifically, the FCC concluded that the standard for determining whether to sunset the
eligibility restriction should be whether open eligibility poses a significant likelihood of substantial
competitive harm in specific markets, and, if so, whether eligibility restrictions are an effective way to
address that harm. After reviewing the LMDS eligibility restriction, the FCC concluded that the
record does not support a conclusion that open eligibility poses such a significant threat of
substantial competitive harm in specific markets; indeed, open eligibility may improve the availability
of services, especially in rural areas.  Accordingly, the FCC is allowing the restriction to expire.  

Action by the Commission on June 20, 2000 by Third Report and Order and Memorandum Opinion
and Order (FCC 00-223). Chairman Kennard, Commissioners Ness, Powell and Tristani with
Commissioner  Furchtgott-Roth concurring and issuing a separate statement. 
Wireless Bureau Contact: Peter Wolfe at (202) 418- 2191, e-mail: pwolfe@fcc.gov; TTY at (202)
418-7233.

CC Docket No. 92-297