Common carriers: deliquency period for C and F block installment payments; extension,

[Federal Register: November 16, 1998 (Volume 63, Number 220)]

[Rules and Regulations]

[Page 63612-63613]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr16no98-13]

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1 and 24

[WT Docket No. 97-82; FCC 98-290]

Extension of the Commission's Initial Non-Delinquency Period for C and F Block Installment Payments

AGENCY: Federal Communications Commission.

ACTION: Final rule.

SUMMARY: This Order denies the requests of several licensees seeking a waiver of the October 29, 1998, deadline for late installment payments on their licenses. On July 31, 1998, broadband PCS C and F block licensees were required to resume making installment payments on their licenses. However, in accordance with an earlier ruling, licensees that failed to meet the July 31, 1998, deadline were allowed to submit their payment on or before October 29, 1998, without being considered delinquent, if they paid a 5 percent late payment fee.

EFFECTIVE DATE: October 29, 1998.

FOR FURTHER INFORMATION CONTACT: Julie Buchanan at (202) 418-0660 Auctions and Industry Analysis Division, Wireless Telecommunications Bureau.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission Order, WT Docket No. 97-82, FCC 98-290, adopted and released on October 29, 1998. The full text of this Order is available for inspection and copying during normal business hours in the FCC Dockets Branch, 445 Twelfth Street, S.W., Washington, D.C. 20554. The complete text may be purchased from the Commission's copy contractor, International Transcription Service, Inc., 1231 20th Street, N.W., Washington, D.C. 20036. (202) 857-3800.

Synopsis

1. On July 31, 1998, broadband PCS C and F block licensees were required to resume making installment payments on their licenses. However, in accordance with the Order on Reconsideration of the Second Report and Order, 63 FR 17111 (April 8, 1998) (``Reconsideration Order''), licensees that failed to meet the July 31, 1998,

   [[Page 63613]]

   deadline may submit their payment on or before October 29, 1998, without being considered delinquent, if they pay a 5 percent late payment fee. Several licensees have filedrequests seeking a waiver of the October 29, 1998, deadline for late payments. For the reasons stated below, the Commission denies these requests.

2. A licensee asked the Commission to suspend its installment payment for 12 months. It claimed that, without a waiver of the Commission's rules, its inability to fulfill both its obligation to the Commission and its obligation to its principal creditor would threaten the provision of service to its customers and the expansion of its system. Another licensee argued that, due to the collapse of financial markets after the issuance of the Reconsideration Order, the Commission should extend the non-delinquency period another 180 days. In addition, another petitioner sought an extension until January 31, 1999, for the resumption of its installment and accrued interest payment obligations. It asserts that it needs more time to finalize negotiations for capital placement in light of recently discovered problems with its original capitalization plan. Another petitioner requested relief through December 31, 1998, in order to allow it time to receive anticipated funding. Funding delays also caused another licensee to seek an extension until December 13, 1998, or whatever time period the Commission provides to other C block licensees that also are seeking waivers. Finally, another licensee asked for a two-week grace period to accommodate last-minute delays with a needed stock subscription.

3. The Commission declines to waive the October 29, 1998, late payment deadline in response to the individual situations presented. In order for a waiver of the PCS rules to be granted, one of two tests must be met. Pursuant to Sec. 24.819 of the Commission's Rules, the entity requesting a waiver must demonstrate either that: (1) ``the underlying purpose of the rule will not be served, or would be frustrated, by its application in a particular case, and that grant of the waiver is otherwise in the public interest'' or (2) ``the unique facts and circumstances of a particular case render application of the rule inequitable, unduly burdensome or otherwise contrary to the public interest.''

4. Although the specific concerns raised by each petitioner vary, all revolve around the same theme--the inability to raise capital. The challenge of raising capital to finance C and F block licenses exists in varying degrees for all licensees and does not constitute ``unique facts and circumstances.'' In formulating, as well as reconsidering, the restructuring options, the Commission addressed the challenges of raising capital. Further, the Commission does not believe that the underlying purpose of its rules would be frustrated by their application here or that it would serve the public interest to delay their enforcement. As the Commission stated in the Reconsideration Order, ``[n]o matter what deadline we establish, it is inevitable that some licensees will seek more time to pay.''

5. Although the Commission is sympathetic to the difficulties certain licensees are facing in securing capital, the Commission made it clear that it ``will not entertain any requests for an extension'' beyond the 60-day non-delinquency period that originally was established for initial payments not submitted by the payment resumption date for C and F block licensees. Further, the Commission ratified a firm deadline for late payments in the Reconsideration Order. Despite the fact that its rules, as amended effective March 16, 1996, allow an automatic grace period for installment payments not made within a non-delinquency period, the Commission determined that such a grace period is not appropriate for the initial July 31 payment. First, licensees have already enjoyed a payment suspension since the spring of 1997. Second, in the Reconsideration Order, the Commission provided additional relief by extending to 90 days the original 60-day non- delinquency period for initial payments. A further extension of the non-delinquency period would only serve to undermine the Commission's enforcement of its payment deadlines. Therefore, licensees that failed to make payment by July 31, 1998, and fail to make full payment by October 29, 1998, including the 5 percent late payment fee, will be subject to the automatic cancellation of their licenses.

6. Accordingly, it is ordered that, pursuant to Sections 4(i), 303(r), and 309(j) of the Communications Act of 1934, as amended, 47 U.S.C. Secs. 154(i), 303(r), and 309(j), the requests filedfor a waiver of the October 29, 1998, late payment deadline for C and F block licensees are denied and the waiver request filedseeking an extension until January 31, 1999 for the resumption of installment and accrued interest payment obligations is dismissed as moot.

   List of Subjects

   47 CFR Part 1

   Administrative practice and procedure.

   47 CFR Part 24

   Personal communications services.

   Federal Communications Commission. Magalie Roman Salas, Secretary.

   [FR Doc. 98-30551Filed11-13-98; 8:45 am]

   BILLING CODE 6712-01-P