1998 Biennial Regulatory ReviewSpectrum Aggregation Limits for Wireless Telecommunications Carriers

This document completes the Commission's re-assessment of the 45 MHz Commercial Mobile Radio Service (CMRS) spectrum cap and cellular cross-interest rules initiated as part of our 1998 biennial review of the Commission's regulations pursuant to section 11 of the Communications Act. After careful analysis and extensive review of the rules and the record in this proceeding, the Commission concludes that at this time the spectrum cap and cellular cross-interest rules continue to be necessary to promote and protect competition in CMRS markets. However, the Commission finds that it is appropriate to modify both rules to allow some greater cross-ownership at this time. The Commission adopts a modest increase in the spectrum cap's current aggregation limit in rural areas to reflect the differing costs and benefits of limits on spectrum aggregation in rural areas, and a separate attribution benchmark of 40 percent for passive institutional investors. The Commission amends the cellular cross interest rule by increasing the attribution benchmarks used in the rule. Finally, as part of this proceeding, the Commission denied a petition to forbear from enforcement of the CMRS spectrum cap filed by the Cellular Telecommunications Industry Association (CTIA).