HomeMy WebLinkAboutIR 7847 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7847
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oFb To the Mayor and Members of the City Council
July 5, 1994
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PUBLIC AUCTION OF RADIO FREQUENCIES
On July 24, 1994, the Federal Communications Commission (FCC) will undertake an
unprecedented public auction of radio frequencies now used principally by local
governments. Bidders for these frequencies will be providers of so-called personal
communications services (PCS). These new services will allow customers to receive faxes
over the air on hand-held devices and get minute-by-minute stock quotes on a belt unit. The
FCC's motive in the auction process is to raise revenue for the federal government and, at
the same time, promote a newly emerging high-tech industry.
The acquisition of these air waves by the PCS companies will entail the dislocation of current
users, such as the City of Fort Worth. The microwave system over which our radio
communications operate is included in the frequencies to be auctioned. Under the FCC's
rules, however, the winning bidder will be required to absorb all costs associated with
relocating the City's Communication system to other frequencies. The requirement is for
the City's migration to the new frequencies to be "seamless" and entail no disruption in
service.
The winning bidder will be obligated to negotiate an acceptable relocation agreement with
the City. Voluntary negotiations can proceed over a four year period. If agreement cannot
be reached with voluntary negotiations, a one year period of mandatory negotiations will be
ordered. It is quite possible that the PCS company may offer incentives to the City early in
the negotiations process in order to reach a settlement so they can commence business as
soon as possible. The City is, therefore, in a position to come out of this process with an
enhanced.system at no extra cost.
The staff will keep the City Council informed of all developments on this issue.
Bob Teriell
City Manager
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ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS