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OGC-00-47 1 (2000-07-28)

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~GAO                        __            _        _        _        __


United States General Accounting Office                      Office of the General Counsel
Washington, DC 20548

         B-285852



         July 28, 2000

         The Honorable John Mc Cain
         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: Narrowband Personal
                 Communications Services, Competitive Bidding

         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
         Narrowband Personal Communications Services; Competitive Bidding (GEN
         Docket No. 90-314, ET Docket No. 92-100, PP Docket No. 93-253; FCC 00-159). We
         received the rule on July 14, 2000. It was published in the Federal Register as a final
         rule on June 6, 2000. 65 Fed. Reg. 35843.

         The final rule modifies the FCC's existing narrowband Personal Communications
         Services (PCS) rules. These modifications include the use of Major Trading Areas
         for future licensing, the establishment of a substantial service alternative to the
         current construction benchmarks, and modifications to certain provisions of the PCS
         competitive bidding rules. Also, the final rule eliminates the narrowband PCS
         spectrum aggregation limit and adopts partitioning and disaggregation rules.

         Enclosed is our assessment of the FCC's compliance with the procedural steps
         required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule.
         Our review indicates that the FCC complied with the applicable requirements
         with one exception.


GAO/OGC-00-47

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