Federal Communications CommissionDA 99-2333

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of)

)

MINNKOTA POWER COOPERATIVE INC.)FCC File Nos.734299-734305

)

Request for Grant of Primary Status for)

Stations WBM392, WNTI458, KTJ77, )

KBU86, WBD34, WBD35, and KIL48)

ORDER

Adopted: October 27, 1999Released: October 27, 1999

By the Chief, Public Safety and Private Wireless Division, Wireless Telecommunications Bureau:

1. Introduction. On March 10, 1997, Minnkota Power Cooperative, Inc. (Minnkota) filed the above-captioned applications seeking to modify its 2 GHz fixed microwave service (FMS) stations, and requested that the licenses retain primary status.[1] For the reasons that follow, Minnkota's request for primary status is granted in part and denied in part.

2. Background. The Commission has reallocated portions of the 2 GHz band from FMS to emerging technology (ET) services, including the personal communications services (PCS).[2] To this end, the Commission has adopted certain transition rules.[3] First, rather than immediately clearing the 2 GHz band of the incumbent FMS users, the Commission permits the incumbents to continue to occupy the band on a co-primary basis with the ET licensees for a significant length of time, by the end of which the incumbents are to relocate to another portion of the spectrum.[4] ET licensees have the option, however, of requiring the FMS incumbents to relocate sooner if they pay the additional costs caused by the earlier relocation.[5] Second, the Commission is authorizing new FMS stations and most modifications of FMS stations only on a secondary basis to ET systems.[6] One practical effect of these rules is that incumbent FMS licensees that are authorized on a primary basis will have the costs of relocating to other bands paid for by the new ET licensees if the ET licensees force them to relocate. On the other hand, ET licensees are under no obligation to pay to relocate 2 GHz links that are authorized on a secondary basis.[7]

3. As indicated, PCS is among the ET services to be reallocated a portion of the 2 GHz band from FMS. The portion of the 2 GHz band that was reallocated to PCS already has been auctioned and licensed,[8] and licensees have begun to build out their systems and provide service. The Commission has yet to license or auction the portion of the 2 GHz band that was reallocated to other ET services, such as mobile satellite service or broadcast auxiliary service.[9]

4. On March 10, 1997, Minnkota requested that Station KTJ77 in Grafton, North Dakota, Station KBU86 in Drayton, North Dakota, Station WBD34 in Bagley, Minnesota, Station WBD35 in Bemidji, Minnesota, and Station KIL48 in Winger, Minnesota be relocated from the PCS segment to the non-PCS segment of the 2 GHz band. Minnkota stated that the relocation of these FMS stations was being done at the request of the affected PCS provider.[10] In addition, Minnkota requested that these stations and Station WBM392 in Shooks, Minnesota, and Station WNTI458 in Margie, Minnesota, have their coordinates changed in order to more accurately reflect the location of each station.[11] Minnkota emphasized that the actual location of the stations will not change.[12]

5. Discussion. Under the Commission's 2 GHz transition rules, incumbent 2 GHz FMS licensees will not retain primary status if they make extensions or major modifications to their systems.[13] A change in frequencies is a major modification.[14] Minnkota argues that the stations should nonetheless be permitted to retain primary status because the frequencies are being changed at the request of the affected PCS provider, and the modification will not increase its relocation costs.[15] Section 101.81 of the Commission's Rules clearly provides, however, that all major modifications to existing FMS systems will result in secondary status; that a modification will not increase relocation costs is a consideration only with respect to minor modifications.[16] Moreover, when we consider that the Commission's expressed goal is to relocate incumbent FMS licensees from the 2 GHz band to other fixed microwave bands, we are not persuaded that it is consistent with such goal to allow a microwave incumbent to retain primary status if it relocates from the PCS segment to the non-PCS segment of the 2 GHz band.[17] Therefore, we will grant the modified licenses for Stations KTJ77, KBU86, WBD34, WBD35, and KIL48 with secondary status.

6. With respect to Stations WBM392 and WNTI458, Minnkota requests only that the coordinates be modified to more accurately reflect the actual location of each station. Since neither station was physically relocated, we will treat the modification of their coordinates as data corrections. Data corrections are minor technical changes for which incumbent FMS licenses maintain primary status.[18] We will therefore grant Minnkota's request that the licenses for Stations WBM392 and WNTI458 be granted with primary status.

7. ACCORDINGLY, IT IS ORDERED that pursuant to Sections 4(i) and 309 of the Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i) and 309, and Section 101.81 of the Commission's Rules, 47 C.F.R. § 101.81, the request for primary status filed by Minnkota Power Cooperative, Inc., on March 10, 1997, IS GRANTED IN PART and DENIED IN PART to the extent discussed herein. Following grant of the requested modifications, the licenses for Stations WBM392 and WNTI458 will be re-issued with primary status, and the licenses for Stations KTJ77, KBU86, WBD34, WBD35, and KIL48 will be re-issued with secondary status.

8. This action is taken under delegated authority pursuant to Sections 0.131 and 0.331 of the Commission's Rules, 47 C.F.R. §§ 0.131, 0.331.

FEDERAL COMMUNICATIONS COMMISSION

D'wana R. Terry

Chief, Public Safety and Private Wireless Division

Wireless Telecommunications Bureau

[1]See Letter from Dan Schmitt, Telecommunications Engineering Manager, Minnkota Power Cooperative, Inc., to Federal Communications Commission (dated Mar. 10, 1997) (Minnkota Letter).

[2]Redevelopment of Spectrum to Encourage Innovation in the Use of New Telecommunications Technologies, First Report and Order and Third Notice of Proposed Rule Making, 7 FCC Rcd 6886 (1992) (ET First Report and Order).

[3]See 47 C.F.R. §§ 101.69-101.81. The rules are intended to reaccommodate the FMS licensees in a manner that would be most advantageous for the incumbent users, least disruptive to the public and most conducive to the introduction of new services. SeeET First Report and Order, 7 FCC Rcd at 6886-87 ¶ 5.

[4]47 C.F.R. §§ 101.69(b), 101.79(a). See alsoET First Report and Order, 7 FCC Rcd at 6886 ¶ 5.

[5]See 47 C.F.R. §§ 101.69(a), 101.71-101.77.

[6]47 C.F.R. § 101.81. See Amendment to the Commission's Rules Regarding a Plan for Sharing the Costs of Microwave Relocation, First Report and Order and Further Notice of Proposed Rule Making, 11 FCC Rcd 8825, 8868 ¶ 88 (1996) (Cost Sharing First Report and Order).

[7]SeeCost Sharing First Report and Order, 11 FCC Rcd at 8869 ¶ 89.

[8]See Commercial Mobile Radio Service Information: Announcing the Winning Bidders in the FCC's Auction of 99 Licenses to Provide Broadband PCS in Major Trading Areas, Public Notice, PNWL 95-028 (rel. Mar. 13, 1995); Entrepreneurs' C Block Auction Closes - FCC Announces Winning Bidders in the Auction of 493 Licenses to Provide Broadband PCS in Basic Trading Areas, Public Notice, DA 96-716 (rel. May 8, 1996); Entrepreneurs' C Block Reauction Closes - FCC Announces Winning Bidders in the Reauction of 18 Licenses to Provide Broadband PCS in Basic Trading Areas, Public Notice, DA 96-1153 (rel. July 17, 1996); D, E, and F Block Auction Closes, Winning Bidders in the Auction of 1,479 Licenses to Provide Broadband PCS in Basic Trading Areas, Public Notice, DA 97-81 (rel. Jan. 15, 1997); and C, D, E, and F Block Broadband PCS License Auction Closes -- Winning Bidders of 302 Licenses Announced, Public Notice, DA 99-757 (rel. Apr. 20, 1999).

[9]See Establishment of Policies and Service Rules for the Mobile Satellite Service in the 2 GHz Band, Notice of Proposed Rulemaking, 14 FCC Rcd 4843 (1999).

[10]Minnkota Letter at 1.

[11]Id. at 1-2.

[12]Id.

[13]47 C.F.R. § 101.81; seeCost Sharing First Report and Order, 11 FCC Rcd at 8868 ¶ 88.

[14]47 C.F.R. § 1.929(a)(5).

[15]Minnkota Letter at 1-2.

[16]47 C.F.R.§ 101.81.

[17]See Cost Sharing First Report and Order, 11 FCC Rcd at 8829 ¶ 3.

[18]47 C.F.R. § 101.81(d).