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GAO-05-141R 1 (2005-01-10)

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       Accountability * Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548

          B-295300


          January 10, 2005

          The Honorable Ted Stevens
          Chairman
          The Honorable Daniel K. Inouye
          Ranking Minority Member
          Committee on Commerce, Science, and Transportation
          United States Senate

          The Honorable Joe Barton
          Chairman
          The Honorable John D. Dingell
          Ranking Minority Member
          Committee on Energy and Commerce
          House of Representatives

          Subject: Federal Communications Commission: Promoting Efficient Use of Spectrum
                  Through Elimination of Barriers to the Development of Secondary Markets

          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
          Promoting Efficient Use of Spectrum Through Elimination of Barriers to the
          Development of Secondary Markets (FCC 04-167, WT Docket No. 00-230). We
          received the rule on October 8, 2004. It was published in the Federal Register as a
          final rule on December 27, 2004. 69 Fed. Reg. 77522.

          The final rule builds upon the policies adopted in 2003 to facilitate the ability of
          licensees in our Wireless Radio Services that hold exclusive authority to lease
          some or all of their spectrum usage rights to third parties and to streamline approval
          procedures for license assignments and transfers of control in these Wireless Radio
          Services. The rule adopts immediate processing procedures for certain classes of
          spectrum leasing arrangements and license transfers and assignments that do not
          raise potential public interest concerns. Also, it extends the spectrum leasing
          policies to additional services and adopts a new regulatory concept, the private
          commons.

          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 FCC complied with the applicable requirements.


GAO-05-141R

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