SBT SMALL BUSINESS IN TELECOMMUNICATIONS
1835 K Street, N.W., Suite 650, Washington, D.C. 20006
202/223-8728 telephone, 202/659-0071 facsimile


March 29, 1999



MEMBER ALERT
FCC RELEASES NOTICE OF PROPOSED RULE MAKING
TO AUCTION PRIVATE RADIO CHANNELS BELOW 800MHz

The Federal Communications Commission issued a Notice of Proposed Rule Making (WT Docket 99-87) seeking comment on:

1) The scope of the Communications Act's exemption from use of auction for the purpose of licensing spectrum for use for public safety purposes; and

2) What changes in the Communications Act, adopted in 1997, may have created additional auctionable spectrum; and

3) Adoption of standards for particular uses of the Industrial Pool for use by certain potentially protected entities, i.e. utilities, railroads, etc.; and

4) Whether "multiple-licensed" systems (private carriers, community repeaters, etc.) should be subjected to rule changes to remove "artificial distinctions" between such systems and commercial providers that acquire spectrum via auction; and

5) Whether private radio spectrum should be auctioned; and

6) If so, how?

The implications of this rule making are far-reaching and could be devastating to the business plans of each and all of our members. Although this Member Alert will not go into the specific aspects of each portion of the NPRM, we strongly urge members to down load the NPRM from the FCC's web site and read it carefully. In particular, we suggest a scrutiny of that portion beginning at Paragraph 88 regarding licensing of "Band Managers" by issuance of overlay licenses, which the FCC believes would assist in privatizing the allocation of spectrum for individual uses, i.e. delegation of authority for licensing of local systems via providing overlay licenses in given market areas.

This rule making will set the stage for all future licensing of spectrum below 800 MHz. The need to unite and file comprehensive comments in support of the needs and future of small business in paramount. General Counsel, Robert Schwaninger of Schwaninger & Associates, will speak to all relevant issues arising from the rule making at the SBT Jam Session in Las Vegas, so don't miss that event to find out what this all means and what you must do to preserve your spectrum opportunities.

Initial comments are due within sixty (60) days following publication in the federal register of the FCC's NPRM with reply comments due thirty days later.

We cannot stress enough the importance of your becoming informed and aware of this NPRM and the implications of passage of the FCC's proposed method of licensing. SBT will keep you informed about this matter and what it means to you. For now, your first job is to read the NPRM, think about it, and be ready to support SBT's efforts to insure the long-term viability of small business in our industry.

SBT is still analyzing this 57-page document, which is packed with open-ended suggestions and implications. After SBT is more comfortable with expressing the totality of the implications (many of which are obvious) it will provide more comprehensive insights to its members.

Some Things Are Important
Some Things Are Critical
Some Things Are Necessary
and
A Few Things Are Absolutely Essential

Don't Let Opportunity Die
Unite!!!



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