Summary

Pursuant to a legislative requirement, GAO reviewed the Federal Communications Commission's (FCC) new rule on local multipoint distribution service (LMDS) and fixed satellite services. GAO noted that: (1) the rule would facilitate more effective use of the microwave radio spectrum by permitting the partitioning of a licensee's authorized geographic service area and disaggregation or assignment of discrete portions of the radio spectrum licensed to the geographic area or qualifying entity; (2) the rule would permit LMDS licensees to partition their service areas along any boundaries they choose so that they can quickly respond to consumer demands, as opposed to restricting the partitioning to geopolitical boundaries or county lines; (3) the rule would also permit the disaggregation of the licensed spectrum without limitation for the same reasons applied to the partitioning--to ensure that LMDS licensees are able to use their spectrum more efficiently; (4) in addition, the rule would permit combined partitioning and disaggregation; and (5) FCC complied with applicable requirements in promulgating the rule.