FCC 96 181 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) Central Radio Communications Corporation ) File No. 538455 Application For A New ) Conventional Specialized Mobile Radio ) System in New York City, New York ) MEMORANDUM OPINION AND ORDER Adopted: April 18, 1996 Released: April 30, 1996 By the Commission: Introduction 1. On December 30, 1992, Central Radio Communications Corporation ("Central") filed an application for review1 in which Central argues that the dismissal of its application for a Specialized Mobile Radio (SMR) system in New York City was in error. Central's SMR application was filed after the former licensee allowed its license to expire, but before that license was deleted from the Commission's licensing database. The staff dismissed the SMR application in accordance with Section 90.175 of the Commission's Rules.2 For the reasons that follow, we affirm the Bureau's dismissal of Central's application and deny Central's Application for Review. Background 2. On October 8, 1990, Station KNEW212 licensed to James Franchi and William Pollenz expired. The licensees failed to file a renewal within the 180 day grace period after 1 Central filed a petition for reconsideration challenging the dismissal of its application on November 19, 1991. This petition was dismissed by letter from the Deputy Chief, Licensing Division dated December 3, 1992. 2 47C.F.R. § 90.175. 17110 the expiration date.3 On'the 181st day, April 9, 1991, three applicants, Central, Winston American Transportation, Inc. ("Winston") and Spectrum Resources filed applications. The Commission staff dismissed all three applications because they each sought a channel after the expiration of the station KNEW212 license which was not yet available.4 The frequencies were encumbered on the Commission's lice.ising database on the date the applications were filed as the former licensee's authorization had not been deleted from the Commission's database.5 Discussion 3. Central argues that prior to January 21, 1992, the effective date of Amendment of Parts 1 and 90 of the Commission's Rules Concerning the Construction. Licensing and Operation of Private Land Mobile Radio Stations6 dealing with licensing procedures that changed the renewal grace period from 180 days to 30 days,7 frequencies were recovered when licenses were not renewed and thus were "available" on the day after the renewal grace period ended, the 181st day after the previous license expired. Central asserts that some applications coordinated by the Commission's designated frequency coordinators were granted despite the fact that the licenses were encumbered on our database. 4. Section 90.175 of the Commission's Rules requires that applications be accompanied by a statement from a coordinator recommending an "available" frequency.8 Central argues that in 1991 frequencies were "available" when no other licensee continued to have a right to renew an existing license. While Central's interpretation has some appeal because it facilitates rapid reassignment of frequencies, for the reasons discussed below, the 3 Under the rules hi effect at that time, licensees could file a renewal within 180 days after expiration. This grace period has since been changed to thirty days. Amendment of Parts 1 and 90 of the Commission's Rules Concerning the Construction, Licensing, and Operation of Private Land Mobile Stations, PR Dkt 90-481, 6 FCC Red 7297, 7301 (1991) (para. 24). 4 Letters from Chief, Land Mobile Branch dated October 21, 1991 ("The requested frequency was not available until 6/1/91, the date records KNEW212 [sic] was purged from the Commission's database. Accordingly, your application is defective and is hereby dismissed."). 5 On October 21, 1991, Winston filed a new application, the first filed after deletion of Station KNEW212 from the database. Winston filed an opposition to Central's Application for Review on January 14, 1993. 6 6 FCC Red 7297, 7300-03 (1991) (paras. 15-26). 7 See, paragraph 9 infra. 8 47 C.F.R. § 90.175(b). Effective October 22, 1986. 51 Fed. Reg. 14993 (1986). 17111 Commission has repeatedly interpreted "available" as used in Section 90.1759 to mean that the frequency is not encumbered on the licensing database. 5. On January 11, 1989, the Chief of the Land Mobile and Microwave Division, Private Radio Bureau, set forth in writing for the National Association of Business and Educational Radio ('^ABER"), the frequency coordinator for Central's application, and Specialized Industrial Radio Services Association ("SIRSA"),10 another coordinator, the Commission's interpretation of the term "available" as used in Section 90.175." He stated: We feel that the coordinators, licensees, applicants, and the general public should rely on the same sources of information regarding the availability of frequencies the Commission's database. To this end, coordinators must rely upon the update of our database as official notification that frequencies are available for reassignment.12 While the definition was offered in the specific context of frequencies recovered from licensees who fail to construct, the broad interpretation of the term and the public interest rationale underlying it - notification to the public - is generally applicable to any frequencies recovered from licensees. 6. In 1990, a Notice of Proposed Rulemaking relating to Private Land Mobile licensing procedures and requirements, the Commission reiterated its interpretation of the term "available," and explained the rationale for the interpretation. The Commission stated: If a licensee does not seek reinstatement within this six month period, the station authorization is deleted from our license records and the channel is considered available for further assignment or, in other terms unencumbered. 13 In the footnote to the statement, the Commission provided further detail regarding this interpretation: Generally speaking, a frequency remains encumbered until the license records are deleted from our automated database, which generally occurs approximately 9 47 C.F.R. § 90.175. 10 SIRSA has changed its name to Industrial Telecommunications Association. 11 Letter from Chief, Land Mobile and Microwave Branch, Private Radio Bureau to Mark E. Crosby, President, NABER, and Emett B. Kitchen, President, SIRSA. 12 Id. at p. 2. 13 Notice of Proposed Rulemaking, Amendment of Part 90 of the Commission's Rules Concerning the Construction, Licensing, and Operation of Private Land Mobile Radio Stations, PR Dkt 90-481, 5 FCC Red 6401, 6402 (1990) (para 9). 17112 sn months after the expiration of a non-renewed license. Consequently, frequencies encumbered by an expired license do nol become available for further assignment until the database is purged, which alerts all interested applicants and the coordinators that the channels are no longer encumbered. 14 The restatement of the existing interpretation provided the groundwork for a discussion of possible changes in licensing procedure. 7. In the Notic; of Proposed Rulemaking. the Commission set forth its rationale for maintaining the "unencumbered" interpretation rather than adopting SIRSA's proposal to make channels available the day following the renewal grace period. The Commission stated that if an applicant filed a renewal application near the end of the grace period, other applicants would not have notice of the filing until several days later when the Commission staff processed the application. All coordinations on the day following the grace period would not be based on up to date information. Thus, innocent applicants would file, their applications would be dismissed, and the filing fee would be forfeited. In keeping with this rationale, the Commission stated that it intended to retain the interpretation that frequencies are unavailable until all encumbrances are deleted from the database, and that it intended to shorten the grace period in order to make unused frequencies available more quickly. The Commission requested comment on this proposal. 15 Central filed its application during the comment period oftheNPRM. 8. As a result of this rule making proceeding, the Commission shortened the time period prior to removing expired licenses from our data base,16 and declined to adopt SIRSA's proposal to alter the interpretation of the term "available."17 9. Central relied on statements by designated frequency coordinators that they understood that the Commission considered the frequencies to be "available" on the day following the grace period, and that some applications which they coordinated (thereby 14 Id- at note 15. 15 The Commission was reviewing that request at the time Central filed its application. On October 22, 1991, the Commission adopted an order resolving the rulemaking proceeding. The pertinent portions of the database deletion policy cited by the staffs letter of October 21, 1991 were discussed and remained unchanged in the Commission's order. Report and Order, PR Dkt 90-481, 6 FCC Red 7297, 7302 (1991) ("under no circumstances will we accept an application for a particular frequency until that frequency has actually been deleted from the database - unless [a finder's preference award is included]"). See also. Memorandum Opinion and Order, PR Dkt 90-481, 8 FCC Red 6690 (1993) (paras. 3-5). 16 Amendment of Parts 1 and 90 of the Commission's Rules Concerning the Construction, Licensing, and Operation of Private Land Mobile Radio Station, 6 FCC Red 7297 (1991) (discussion at paras. 22-26). 17 Id- at para. 26. 17113 assuring the Commission's processing staff that the channels were available) were granted. The coordinators' misiaken interpretation of the term "available" is insufficient to cure the defect in Central's application. The coordinators are not authorized to substitute tueir interpretation of Commission Rules for ours. 18 While the Commission staff may have failed to discover defects in some applications processed in reliance on a coordinator's defective certifications, the Corrmission has not interpreted Section 90.175 in any manner inconsistent with its directions to tie coordinators and its statements in published Commission items. 10. For the above reasons, IT IS ORDERED THAT the Bureau's dismiss^ of Central's application IS AFFIRMED and the Application for Review filed by Central Radio Communications Corporation IS DENIED. FEDERAL COMMUNICATIONS COMMISSION William F. Caton Acting Secretary 18 See. 47 C.F.R. § 0.455(d). 17114