Pswf Corporation v. Federal Communications Commission and United States of America

108 F.3d 354, 323 U.S. App. D.C. 300, 1997 U.S. App. LEXIS 4000
CourtCourt of Appeals for the Federal Circuit
DecidedMarch 7, 1997
Docket96-1097
StatusPublished
Cited by6 cases

This text of 108 F.3d 354 (Pswf Corporation v. Federal Communications Commission and United States of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pswf Corporation v. Federal Communications Commission and United States of America, 108 F.3d 354, 323 U.S. App. D.C. 300, 1997 U.S. App. LEXIS 4000 (Fed. Cir. 1997).

Opinion

Opinion for the Court filed by Circuit Judge RANDOLPH.

RANDOLPH, Circuit Judge:

The Federal Communications Commission issued an order establishing a new category of 929 megahertz (MHz) private carrier paging licenses. When the Commission refused to reconsider the order, American Mobil-phone 1 filed this petition for judicial review.

Historically, the Commission has licensed two types of paging services. Common carrier paging licensees gained the exclusive use of the licensed frequency within their protected service area. Private carrier paging licensees had to share their allotted frequency with other such licensees operating in the same geographic area. By the early 1990’s, nearly all common carrier paging channels had been allotted while some private carrier paging channels were underused.

In February 1993, the Commission adopted a notice of proposed rulemaking to give private paging operators exclusive rights to a particular channel. Under the Commission’s plan, 35 of the 40 channels in the 929 MHz band were to be so licensed. See Notice of Proposed Rule Making, Amendment of the Commission’s Rules to Provide Channel Exclusivity to Qualified Private Paging Systems at 929-930 MHz, 8 F.C.C.R. 2227. The Commission moved toward exclusivity in order to enhance the efficiency of spectrum usage. When frequencies are shared, the Commission thought, each operator must monitor other operators using the same channels. “Paging *356 operators are reluctant to invest in” technologies to update their systems “when they may be required, in effect, to turn their systems off periodically to accommodate other users.” Id.

Private carrier paging operators applying for these new exclusive licenses would be given “eight months to construct their systems or channel exclusivity would terminate.” Id. at 2231. “Because construction of larger systems may take longer than eight months,” the Commission proposed “a ‘slow growth’ option for construction of systems with more than thirty transmitters.” Id. Under the slow-growth scheme, applicants “could be granted up to three years to construct based on a showing of reasonable need for the extension, a detailed construction timetable, and evidence of financial ability to construct the system.” Id. “As in the case of conventional applicants, a slow growth applicant’s failure to complete construction as proposed would result in forfeiture of exclusivity and revocation of licenses for all unconstructed transmitters.” Id. at 2231-32.

The Commission also proposed “to extend exclusive channel rights to all systems” then already operating on the 929 MHz band that could satisfy the criteria for exclusivity for new applicants. Id. at 2232. Those existing 929 MHz systems too small to qualify for exclusivity would be allowed to continue operating on their assigned frequency “without being forced to change frequencies or location.” Id. But these lieens-ees would have to share their frequencies with the new, otherwise-exclusive licensees. Because this grandfathering interfered with true exclusivity, the Commission requested “comment on what impact grandfathering would have on existing systems and on the ability of new systems to obtain exclusive frequencies.” Id. at 2233.

The notice of proposed rulemaking stated that the Commission would authorize no new construction of 929 MHz facilities and would accept no new applications for 929 MHz paging channels until the final rule issued. Within a few weeks the Commission realized that its freeze order was having unanticipated adverse effects, “stranding investment in ongoing projects while delaying the ultimate provision of paging service to prospective customers.” Order, Amendment of the Commission’s Rules to Provide Channel Exclusivity to Qualified Private Paging Systems at 929-930 MHz, 8 F.C.C.R. 2460 (1993). And so in March 1993 the Commission adopted an order lifting the freeze. See id.

In June 1993, while the Commission was reviewing comments on its proposed rule, American Mobilphone filed fifteen applications for private paging licenses, each covering six proposed transmitters in a system that would spread out over the southeastern United States. These applications were granted at various times from August 1993 through February 1994.

In the meantime, on October 14, 1993, the Commission published a notice (the “Sunshine Notice”) of an open meeting on its proposed rule. One month later, on November 17, 1993, the Commission released its final rule. See Report and Order, Amendment of the Commission’s Rules to Provide Channel Exclusivity to Qualified Private Paging Systems at 929-930 MHz, 8 F.C.C.R. 8318 (1993). The final rule generally corresponded with what the Commission had proposed. See id. at 8337-41 (codified at 47 C.F.R. §§ 90.495 to 90.496). But in a footnote the Commission stated that the “slow-growth option will be limited to new applications only. We will not grant requests to extend the construction period for grandfathered licenses.” Id. at 8326 n. 43. Grandfathered licenses were those for whom applications were “filed prior to the Sunshine Notice date” — October 14, 1993. Id. at 8329 n. 64; see id. at 8340 (codified at 47 C.F.R. § 90.495(e)).

American Mobilphone, which had applied for its licenses prior to the Sunshine Notice, but wanted slow-growth eligibility, sought reconsideration. American also requested that the Commission toll the eight-month construction deadline until it acted on American’s reconsideration petition. The Commission instead ordered American to complete construction eight months from the date of the Commission’s determination that American’s proposed system qualified as a grandfathered paging system to which exclusive *357 channel rights would be extended. The Commission rendered this decision in May 1994. As of January 1995, when the construction deadline lapsed, the Commission had not acted on American’s request for reconsideration.

When the Commission finally denied American’s petition for reconsideration on February 8, 1996, it gave this emanation of why it had selected the date of the Sunshine Notice as the cut-off for slow-growth eligibility:

In our view,- as of our Sunshine Notice on October 14, 1993, applicants reasonably could anticipate that we were going to adopt channel exclusivity rules for 929-930 MHz paging licenses. To deter speculative filings, therefore, we decided not to grandfather anyone that filed after October 14, 1993. We believe that the date for dividing “old” from “new” applicants also is the appropriate date for triggering slow growth eligibility. Moreover, we never suggested that slow growth extensions would apply to grandfathered licenses. Indeed, in an April 6,1993 Order,

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108 F.3d 354, 323 U.S. App. D.C. 300, 1997 U.S. App. LEXIS 4000, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pswf-corporation-v-federal-communications-commission-and-united-states-of-cafc-1997.