
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, February 14, 1991                   TAG: 9102140547
SECTION: BUSINESS                    PAGE: C-5   EDITION: EVENING 
SOURCE: The New York Times
DATELINE: WASHINGTON                                LENGTH: Short

CELLULAR COMPETITION BACKED

Setting a regulatory precedent, the Federal Communications Commission decided Wednesday to allow a new form of mobile telephone service in six cities.

The action erodes current federal rules that permit only two cellular telephone companies in each city. The new system makes it possible for a company that now provides mobile communications for car and truck fleets to provide mobile telephone service to hundreds of thousands of individuals in a city.

Because the new system would closely resemble a third cellular service, it could force cellular companies to cut prices.

FCC officials made it clear they would approve similar applications for other cities. The systems are currently planned for New York, San Francisco, Los Angeles, Chicago, Houston and Dallas.

by CNB