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OGC-98-43 1 (1998-04-23)

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G   AO          United States
                General Accounting Office
                Washington, D.C. 20548

                Office of the General Counsel


                B-279728



                April 23, 1998

                The Honorable John McCain
                Chairman
                The Honorable Ernest F. Hollings
                Ranking Minority Member
                Committee on Commerce, Science, and Transportation
                United States Senate

                The Honorable Thomas J. Bliley, Jr.
                Chairman
                The Honorable John D. Dingell
                Ranking Minority Member
                Committee on Commerce
                House of Representatives

                Subject: Federal Communications Commission: Installment Payment Financing for
                          Personal Communications Services (PCS) Licensees

                Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on
                a major rule promulgated by the Federal Communications Commission (FCC),
                entitled Installment Payment Financing for Personal Communications Services
                (PCS) Licensees (WT Docket No. 97-82; FCC 98-46). We received the rule on
                March 30, 1998. It was published in the Federal Register as a final rule on April 8,
                1998. 63 Fed. Reg. 17111.

                The final rule is an amendment of the FCC's above-entitled rule following
                consideration of petitions for reconsideration. The rule makes certain modifications
                designed to provide C block licensees greater flexibility in making their elections
                and will allow existing licensees greater ability to adjust their business plans and
                remain in the wireless market to compete against other providers. It also provides
                for the return of spectrum to the FCC so that other entrepreneurs will have
                opportunities to obtain broad band PCS licenses in a reauction.

                The requirement that a licensee must make the same election for all its licenses is
                eliminated. Instead, a licensee may make different elections for the different Major
                Trading Areas (MTAs) in which it holds licenses.


GAO/OGC-98-43

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