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 NEWS  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974).  News  Media  Information  202  /  418-  0500  Internet:  http://  www.  fcc.  gov  TTY:  1-  888-  835-  5322 
 FOR  IMMEDIATE  RELEASE:  News  Media  Contact:  May  8,  2003  Meribeth  McCarrick  at  (202)  418-  0654 
 e-  mail:  mmccarri@  fcc.  gov 
 FCC  ACTS  TO  ENHANCE  RURAL  PARTICIPATION  IN  SPECTRUM  AUCTIONS 
 Washington,  DC  -  The  Federal  Communications  Commission  (FCC)  has  adopted  a  provision  that  will  increase  the  number  of  rural  telephone  cooperatives  that  are  eligible  for  small  business  preferences  in 
 FCC  auctions.  The  FCC  anticipates  that  this  action  will  increase  the  ability  of  rural  telephone  cooperatives  to  participate  in  spectrum  auctions  and  provide  service  in  rural  areas. 


 Background: 
 In  1997,  the  Commission  undertook  a  rule  making  proceeding  to  expand  the  Part  1  general  competitive  bidding  rules,  streamline  the  service-  specific  regulations  to  eliminate  unnecessary  rules 
 wherever  possible,  and  increase  the  efficiency  of  the  competitive  bidding  process.  In  an  order  adopted  in  2000  in  this  proceeding,  the  Order  on  Reconsideration  of  the  Third  Report  and  Order,  Fifth  Report  and 
 Order,  and  Fourth  Further  Notice  of  Proposed  Rule  Making,  the  FCC  adopted  a  controlling  interest  standard  as  its  general  attribution  rule.  The  adopted  item  resolves  the  petitions  for  reconsideration  filed  in 
 response  to  this  order  and  makes  certain  ministerial  conforming  amendments  and  rule  revisions  to  the  Part  1  general  competitive  bidding  rules. 


 Specifics  of  Action: 
 Most  notably,  in  the  adopted  item,  the  FCC  established  an  exemption  for  rural  telephone  cooperatives  from  the  requirement  that  the  gross  revenues  of  entities  controlled  by  an  applicant’s  officers 
 and  directors  are  attributed  to  the  applicant  for  the  purpose  of  determining  eligibility  for  small  business  preferences  including  bidding  credits.  The  exemption  is  available  to  an  applicant  under  the  following 
 conditions:  (1)  the  applicant  is  validly  organized  as  a  cooperative  pursuant  to  state  law;  (2)  the  gross  revenues  and  other  financial  and  management  resources  of  the  affiliates  of  the  applicant’s  officers  and 
 directors  are  not  available  to  the  applicant;  (3)  the  applicant  is  a  “rural  telephone  company”  as  defined  by  the  Communications  Act;  and  (4)  the  applicant  is  eligible  for  tax-  exempt  status  under  the  Internal 
 Revenue  Code. 
 Action  by  the  FCC  on  April  22,  2003,  by  Second  Order  on  Reconsideration  of  the  Third  Report  and  Order,  and  Order  on  Reconsideration  of  the  Fifth  Report  and  Order  (FCC  03-  98).  Chairman  Powell, 
 Commissioners  Abernathy,  Copps,  Martin,  and  Adelstein  with  Chairman  Powell  and  Commissioners  Martin  and  Adelstein  issuing  separate  statements. 


 Wireless  Bureau  Contacts:  Regina  Martin  at  (202)  418-  0660,  e-  mail:  rmartin@  fcc.  gov;  Andrea  Kelly  at  (202)  418-  0660,  e-  mail:  akelly@  fcc.  gov;  TTY  at  (202)  418-  7233. 
 WT  Docket  No.  97-  82 
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