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House passes bill to reinstate rural cellular licenses

WASHINGTON-The House of Representatives passed legislation that would require the Federal Communications Commission to grant cellular licenses to three rural cellular operators denied licenses in 1992 because at that time the applicants did not qualify under foreign-ownership rules.

The proposal was attached to a bill that would allow federal loan guarantees to entice satellite, cable and wireless companies to deliver local TV signals to rural areas where the signals are not currently available from the local broadcaster.

A similar bill-without the cellular provision-was passed by the Senate in March. The two bills now must be meshed. The White House had not taken a position on the legislation in March and clarification was not immediately available from the White House press office.

The legislation directs the FCC to reinstate the cellular licenses of three companies-Cellwave Telephone Services, FutureWave General Partners and Great Western Cellular Partners. The companies would be allowed to amend their applications to show they comply with the current rules and then would be required to build out their systems within three years.

The companies would pay a fee based on the average pop price paid in the FCC’s Cellular Unserved Areas Auction within 18 months of receiving their licenses. They could not transfer the licenses to another entity for five years.

Similar legislation was passed by the House in 1998 but died in the Senate.

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