[Federal Register Volume 63, Number 178 (Tuesday, September 15, 1998)]
[Rules and Regulations]
[Pages 49291-49296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-24625]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 90
[PR Docket No. 89-552; GN Docket No. 93-252; FCC 98-186]
Geographic Partitioning and Spectrum Disaggregation for the 220-
222 MHz Service
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document, the Federal Communications Commission
(Commission) amends its rules to allow the holders of licenses in the
220-222 MHz band to partition their licensed geographic area and
disaggregate their licensed spectrum.
DATES: Effective November 16, 1998.
FOR FURTHER INFORMATION CONTACT: Scott A. Mackoul or Janet L. Sievert,
Policy and Rules Branch, Commercial Wireless Division, Wireless
Telecommunications Bureau, at (202) 418-7240.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Fifth
Report and Order in PR Docket No. 89-552, adopted on August 4, 1998,
and released on August 6, 1998. The full text of the Fifth Report and
Order is available for inspection and copying during normal business
hours in the FCC Reference Center, Room 239, 1919 M Street, NW,
Washington, DC. The complete text of this decision may also
[[Page 49292]]
be purchased from the Commission's duplicating contractor,
International Transcription Services, 1231 20th Street, NW, Washington,
DC 20036, (202) 857-3800. The complete text is also available under the
name ``fcc98186.wp'' on the Commission's Internet site at http://
www.fcc.gov/Bureaus/Wireless/Orders/1998/index.html.
This Report and Order contains no new or modified information
collection requirements. The information collections referenced in the
item are contained in information collections previously approved by
the Office of Management and Budget under the Paperwork Reduction Act.
Synopsis
1. In 1991, the Commission adopted service rules in PR Docket No.
89-552 and accepted applications of licenses in the 220-222 MHz band.
These licensees, referred to as Phase I 220 MHz licensees, were issued
in 1993-1994. In 1997, the Commission adopted service rules to govern
the second phase of operation and licensing in the 220-222 MHz band.
These licensees, referred to as Phase II 220 MHz licenses, will be
licensed through competitive bidding. As part of the rules governing
Phase II 220 MHz licenses, the Commission authorized any holder of an
Economic Area, Regional, or nationwide Phase II license to partition
portions of its authorization. At the same time, the Commission
requested comment on proposals to permit partitioning and
disaggregation for all licensees in the 220 MHz service, and on what
specific procedural, administrative and operational rules will be
necessary to implement these options.
2. This Fifth Report and Order in PR Docket No. 89-552 addresses
the issues of partitioning and disaggregation in the 220 MHz service.
The Commission first addressed which licensees would be allowed to
partition. Already permitting geographic-based Phase II licensees to
partition their license, the Commission found no compelling reason to
withhold from site-specific licensees the flexibility gained by having
the option to partition their license. Although it may be easier to
partition a license that is based on a geographic area, the Commission
recognized that a number of non-nationwide Phase I licensees have
acquired several site-specific licenses that create a contiguous,
compatible, interconnected system. Consolidation of site-specific
licenses is more likely to occur since the Commission eliminated the
forty-mile restriction in the Fourth Report and Order in PR Docket 89-
552. Instead of limiting partitioning through regulation, the
Commission determined that the marketplace will best decide if
partitioning is economically or technologically feasible. Moreover,
finding that the benefits of partitioning outweigh a desire for a
nationwide license that is used for a single service, the Commission
concluded that nationwide Phase I licensees will also be allowed to
geographically partition their licenses.
3. The one exception to extending partitioning to all 220 MHz
licensees is in the context of Public Safety and EMRS licensees. The
Commission concluded that partitioning is unnecessary in the Public
Safety and EMRS context because those licensees have the options of
sharing frequencies and short-spacing their base stations. In addition,
because applications for Public Safety and EMRS 220 MHz licenses are
not subject to competitive bidding, the Commission found it
inappropriate to allow them to partition their licensed geographic area
for monetary compensation.
4. In addition, consistent with the partitioning policies in other
wireless services, the Commission decided to not limit the maximum size
of geographic area that a 220 MHz licensee may partition and will
permit partitioning based on any area defined by the parties to the
partitioning agreement. Finding that areas defined by county lines or
other geopolitical boundaries may not reflect market realities and may
instead inhibit partitioning, the Commission concluded that the parties
to the partitioning agreement are in the best position to know what
service area will work best for their business needs, which, in turn,
will allow the marketplace to shape optimal service areas. The
Commission decided that any other approach would inevitably lead to
inefficient use of the spectrum by forcing a partitionee to take on
more area than they are willing or capable of serving.
5. The Commission also stated that, consistent with other wireless
services, all proposed partitioning agreements, like disaggregation
agreements, will be subject to Commission review and approval under the
public interest standard of section 310 of the Communications Act. The
Commission will require partitioning applicants to submit, as separate
attachments to the partial assignment application, a description of the
partitioned service area and a calculation of the population of the
partitioned service area and licensed market.
6. Finding that disaggregation will allow licensees to divest
themselves of spectrum that may be more efficiently and profitably used
by another entity or to acquire additional amounts of spectrum to
satisfy their consumer demands, the Commission permitted all 220 MHz
licensees, except Public Safety and EMRS licensees. As in the context
of partitioning, spectrum held by Public Safety and EMRS entities is
more easily shared than disaggregated, and the Commission found that it
would be inappropriate for these licensees to disaggregate spectrum for
monetary compensation. The Commission also concluded that there should
be no minimum or maximum limits imposed on spectrum disaggregation in
the 220 MHz service. Instead, the Commission felt the market will best
determine what amount of spectrum is technically and economically
feasible to disaggregate and will best accommodate future technology.
7. Moreover, the Commission permitted 220 MHz licensees to both
partition their area and disaggregate their spectrum in any
combination. The Commission found that allowing combinations of
partitioning and disaggregation will help licensees respond to market
forces and demands in service relevant to their particular locations
and service offerings, as well as allow licensees to enter or increase
their presence in a market. As in other wireless services, in the event
that there is a conflict in the application of the partitioning and
disaggregation rules, the partitioning rules will prevail.
8. In deciding when a 220 MHz licensee may partition or
disaggregate its license, the Commission separately addressed the
various type of 220 MHz licensees. First, the Commission stated that
non-nationwide Phase I licensees may partition or disaggregate only
after they have fully constructed their base station and placed it into
operation. Because non-nationwide Phase I licensees were initially
required to fully construct their base stations and place them into
operation within eight months of the initial authorization, the
construction deadline for most of these licensees has already passed.
However, for those non-nationwide Phase I licensees that have not yet
been required to construct (i.e., located near the Canadian border),
the Commission felt that requiring construction as a prerequisite was
consistent with the rule prohibiting transfer or assignment of non-
nationwide 220 MHz licensees prior to full construction and operation.
The Commission found that the construction prerequisite will reduce
potential speculation by persons with no real interest in constructing
systems, and deter those who would use
[[Page 49293]]
partitioning or disaggregation to speculate. Moreover, since
construction will be complete before any partitioning or disaggregation
is allowed, no construction requirement will be imposed on a
partitionee or disaggregatee.
9. Second, consistent with the restriction on the transfer or
assignment of nationwide Phase I 220 MHz licenses, the Commission will
require a nationwide Phase I licensee to meet the four-year
construction benchmark before it may partition or disaggregate. Again,
the transfer or assignment restriction was created to reduce any
potential speculation or trafficking in licenses by persons who have no
real interest in constructing systems, and the Commission believed
keeping the current rule will clearly demonstrate the licensees'
commitment to promptly implementing nationwide 220 MHz networks.
10. As for when Phase II licenses may be partitioned, the
Commission found that the different application and licensing processes
between Phase I and Phase II licensees allow it to permit an eligible
Phase II licensee (i.e., non-Public Safety or EMRS) that wishes to
partition or disaggregate to do so once it receives its license. Phase
I licenses were distributed on a random selection basis, where the only
up-front cost to the applicant was the application fee. In contrast,
covered Phase II applicants will have to bid for the licenses, and will
have the financial incentive to develop their 220 MHz systems in order
to recover the costs of the auction. The Commission concluded that this
financial incentive that Phase II licensees have to build-out their
system will mitigate the concern that partitioning and disaggregation
might be used as a means to delay construction.
11. The Commission also addressed the post-assignment construction
requirements of both the assignor and assignee(s). While the goal of
post-assignment construction requirements is to ensure that the
spectrum is used to the same degree that would have been required had
the partitioning or disaggregation transaction not taken place, the
Commission also desired to give licensees and their assignees certain
flexibility to determine how the construction requirements will be met.
Because only nationwide Phase I licensees and non-Public Safety/EMRS
Phase II licensees are allowed to partition or disaggregate before
fully constructing, the Commission addressed how each of these entities
will be able to meet the construction requirements. First, the
Commission decided that it will combine the number of constructed base
stations of the nationwide Phase I licensee and their assignee(s) to
determine if they collectively meet the six and ten year construction
benchmarks. The Commission concluded that this approach is consistent
with the original development of nationwide 220 MHz systems, and serves
the public interest the same as if no assignment had occurred. If the
combined construction fails to meet the construction requirements, both
the original licensee and the assignee(s) would be subject to
cancellation according to the Commission's original rules for
nationwide Phase I 220 MHz licensees.
12. Second, the Commission allowed the parties to the assignment
agreement involving an eligible Phase II license to negotiate and
choose who will be responsible for satisfying the Commission's
construction requirements. The Commission believed that the parties
involved should have the flexibility to determine their respective
responsibilities for satisfying the Commission's construction
requirements, and that, as long as the parties' collective obligations
provide the requisite system coverage, the public interest in having
the system built-out will be met. Specifically, if the assignee
certifies that it will satisfy the same construction requirements as
the original licensee, then the assignee must meet the prescribed
service requirements in its partitioned area (or for its disaggregated
spectrum) while the original licensee would be responsible for meeting
those requirements in the area (or for the spectrum) it has retained.
Alternatively, if one party (generally the original licensee) certifies
that it will meet all future construction requirements, the other party
need only demonstrate that it is providing ``substantial service'' (as
defined in the Commission's rules) for its remaining license. Moreover,
consistent with other wireless services, in the event that both parties
agree to share the responsibility for meeting the construction
requirement and either party fails to do so, both parties' licenses
will be subject to forfeiture. If one party agrees to take
responsibility for meeting the construction requirement and later fails
to do so, that party's license will be subject to forfeiture, but the
other party's license will not be affected.
13. Finally, the Commission also addressed a number of minor issues
surrounding partitioning and disaggregation. First, the Commission
decided that partitionees and disaggregatees will hold their license
for the remainder of the original licensee term and will be eligible
for the same renewal expectancy as the original licensee. Second, if a
220 MHz licensee that received a small or very small business credit in
the auction partitions or disaggregates to a entity that would not be
eligible for the same credit, the unjust enrichment rules established
in 47 CFR part 1 must be applied. Third, the Commission stated that
because it considers partitioning and disaggregation transactions to be
essentially partial assignments of a license, it will eliminate the
rule that forbids partial assignment of Phase I 220 MHz licenses and
adopt the partial assignment procedures for commercial mobile radio
stations to review all 220 MHz partitioning and disaggregation
transactions, both commercial and non-commercial. As with most
assignments and transfers, Commission review and approval is necessary
to ensure compliance with the Commission's rules. This process includes
placing all partial assignment applications on public notice and making
them subject to public comment. The Commission believes the public
notice process is even more important in the context of partitioning
and disaggregation because of the potential interference conflicts such
transactions can create.
14. The Fifth Report and Order in PR Docket No. 89-552 also
contained a Final Regulatory Flexibility Analysis pursuant to the
Regulatory Flexibility Act, 5 U.S.C. 604. It is as follows:
A. Need for and Purpose of This Action
15. In the Fifth R&O, the Commission modifies the 220-222 MHz band
service (220 MHz) rules to permit partitioning and disaggregation for
all 220 MHz licensees. With more open partitioning and disaggregation,
additional entities, including small businesses, may participate in the
provision of the 220 MHz service without needing to acquire wholesale
an existing license (with all of the rights currently associated with
the existing license). Acquiring ``less'' than the current license will
presumably be a more flexible and less expensive alternative for
entities desiring to enter these services.
B. Summary of Issues Raised in Response to the Initial Regulatory
Flexibility Analysis
16. None of the commenters submitted comments that were
specifically in response to the IRFA.
C. Description and Number of Small Entities Involved
17. The rules adopted in the Fifth R&O will affect all small
businesses which avail themselves of these rule changes, including
small businesses that
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will obtain 220 MHz licenses through auction and subsequently decide to
partition or disaggregate, and small businesses who may acquire
licenses through partitioning and/or disaggregation.
D. Summary of Projected Reporting, Recordkeeping and Other Compliance
Requirements
18. The rules adopted in the Fifth R&O will impose reporting and
recordkeeping requirements on small businesses seeking licenses through
partitioning and disaggregation. The information requirements will be
used to determine whether the licensee is a qualifying entity to obtain
a partitioned license or disaggregated spectrum. This information will
be given in a one-time filing by any applicant requesting such a
license. The information will be submitted on the FCC Form 430 which is
currently in use and has already received Office of Management and
Budget clearance. The Commission estimates that the average burden on
the applicant is three hours for the information necessary to complete
these forms. The Commission estimates that 75 percent of the
respondents (which may include small businesses) will contract out the
burden of responding. The Commission estimates that it will take
approximately 30 minutes to coordinate information with those
contractors. The remaining 25 percent of respondents (which may include
small businesses) are estimated to employ in-house staff to provide the
information.
E. Steps Taken To Minimize Burdens on Small Entities
19. The rules adopted in the Fifth R&O are designed to implement
Congress' goal of giving small businesses, as well as other entities,
the opportunity to participate in the provision of spectrum-based
services and are consistent with the Communications Act's mandate to
identify and eliminate market entry barriers for entrepreneurs and
small businesses in the provision and ownership of telecommunications
services.
20. Allowing non-restricted partitioning and disaggregation will
facilitate market entry by parties who may lack the financial resources
for participation in auctions, including small businesses. Some small
businesses may have been unable to obtain 220 MHz licensees through
auction due to high bidding. By allowing open partitioning and
disaggregation, small businesses will be able to obtain licenses for
smaller service areas and smaller amounts of spectrum at presumably
reduced costs, thereby providing a method for small businesses to enter
the 220 MHz service marketplace.
21. Allowing geographic partitioning of 220 MHz licenses by areas
defined by the parties will provide an opportunity for small businesses
to obtain partitioned 220 MHz license areas designed to serve smaller,
niche markets. This will permit small businesses to enter the 220 MHz
service marketplace by reducing the overall cost of acquiring a
partitioned 220 MHz license.
22. Allowing disaggregation of spectrum in any amount will also
promote participation by small businesses who may seek to acquire a
smaller amount of 220 MHz spectrum tailored to meet the needs of their
proposed service.
F. Significant Alternatives Considered and Rejected
23. The Commission considered and rejected the following
alternative proposals concerning 220 MHz partitioning and
disaggregation.
24. The Commission tentatively concluded in the Fifth NPRM to not
adopt partitioning for non-nationwide Phase I licensees and non-covered
Phase II licensees because their licenses were awarded on a site-
specific basis rather than for a geographic area. However, the
Commission rejected this proposal because it found no compelling reason
to withhold from site-specific licensees the flexibility gained by
having the option to partition their license. The Commission noted that
a number of non-nationwide Phase I licensees have acquired several
site-specific licenses and that such consolidation is more likely since
the prohibition of a Phase I licensee operating more than one 220 MHz
station within a 40-mile geographic area has been eliminated. Both of
these developments have created contiguous, compatible and
interconnected 220 MHz systems from non-nationwide Phase I licenses.
Therefore, the Commission concluded that non-nationwide Phase I
licensees should be allowed the same opportunity to partition their
systems and will allow that the marketplace to determine if
partitioning is economically or technically feasible for those systems.
The Commission did, however, maintain that non-covered Phase II
licensees, as well as those Phase I licensees that are Public Safety or
EMRS entities, do not need partitioning or disaggregation, but rather
should continue to share their licensed spectrum in accordance with
Sec. 90.179 of the Commission's rules.
25. The Commission declined to create a minimum standard for the
amount of spectrum that a 220 MHz licensee can disaggregate. In place
of regulation, the Commission found that the marketplace will best
determine the amount of disaggregated spectrum that is economically or
technically feasible and that any minimum standard would not allow for
future technology.
26. The Commission rejected the proposal of Rush Network Corp.
(Rush) that all construction requirements be eliminated and, in their
place, allow the market to dictate when construction will occur.
Recognizing that the most of the 220 MHz licensees have the incentive
to construction, the Commission, nonetheless, reaffirmed that
construction requirements play a vital role in encouraging rapid
deployment of the 220 MHz system and avoid inefficient use of the
spectrum.
27. Along the same lines, the Commission declined permitting
nationwide Phase I licensees to partition or disaggregate before
meeting the four-year construction benchmark. Current rules prohibit
the transfer or assignment of nationwide Phase I licenses prior to the
build out of 40 percent of their system to reduce any potential
speculation or trafficking in licenses by persons who have no real
interest in constructing systems. The Commission concluded that this
rationale should also apply to partial assignments, especially for
Phase I licensees which received their licenses by lottery and thus
lack the financial incentive to recoup their upfront costs.
28. The Commission also rejected the proposal by American Mobile
Telephone Association (AMTA) to convert the six-and ten-year
construction requirements for nationwide Phase I licensees to
population-based criteria. The Commission found that AMTA's approach
would be unnecessarily confusing and inconsistent because those
nationwide Phase I licensees that decided to partition or disaggregate
would have one set of requirements, while those that did not would have
different requirements. Moreover, the Commission found no public
benefit to switching the construction requirement criteria after the
licenses had already been granted.
29. Finally, the Commission rejected the recommendation by Rush to
eliminate the public notice requirements in licensing partial
assignments. The Commission believed that any delay or extra work
created by putting the partial assignment applications on public notice
would be outweighed by the benefits of public
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notice, especially because of the potential interference conflicts that
partitioning and disaggregation may create.
G. Report to Congress
30. The Commission shall include a copy of this Final Regulatory
Flexibility Analysis, along with this Fifth R&O, in a report to be sent
to Congress pursuant to the Small Business Regulatory Enforcement
Fairness Act of 1996, 5 U.S.C. 801(a)(1)(A).
Ordering Clauses
31. Accordingly, It is Ordered That, pursuant to the authority of
sections 4(i), 303(g), 303(r), and 332(a) of the Communications Act of
1934, as amended, 47 U.S.C. 154(i), 303(g), 303(r), and 332(a),
Sec. 90.709 of the Commission's rules, 47 CFR 90.709, is amended.
32. It is further ordered that, pursuant to the authority of
Sections 4(i), 303(g), 303(r), and 332(a) of the Communications Act of
1934, as amended, 47 U.S.C. 154(i), 303(g), 303(r), and 332(a),
Sec. 90.725 of the Commission's rules, 47 CFR 90.725, is amended.
33. It is further ordered that, pursuant to the authority of
Sections 4(i), 303(g), 303(r), and 332(a) of the Communications Act of
1934, as amended, 47 U.S.C. 154(i), 303(g), 303(r), and 332(a),
Sec. 90.1019 of the Commission's rules, 47 CFR 90.1019, is amended.
34. It is further ordered that the rule change adopted herein shall
become effective sixty days after date of publication in the Federal
Register. This action is taken pursuant to sections 4(i) and 303(r) of
the Communications Act of 1934, as amended, 47 U.S.C. 154(i) and
303(r).
35. It is further ordered that the Office of Public Affairs,
Reference Operations Division, shall send a copy of this Fifth Report
and Order, including the Final Regulatory Flexibility Analysis, to the
Chief Counsel for Advocacy of the Small Business Administration, in
accordance with section 605(b) of the Regulatory Flexibility Act, 5
U.S.C. 601(a).
List of Subjects in 40 CFR Part 90
Business and industry, Radio.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
Rule Changes
For the reasons discussed in the preamble of part 90 of Title 47 of
the Code of Federal Regulations is amended as follows:
PART 90--PRIVATE LAND MOBILE RADIO SERVICES
1. The authority citation for part 90 continues to read as follows:
Authority: Secs. 4, 251-2, 303, 309, and 332, 48 Stat. 1066,
1082, as amended; 47 U.S.C. 154, 251-2, 303, 309 and 332, unless
otherwise noted.
2. Section 90.709 is amended by revising paragraph (d) to read as
follows:
Sec. 90.709 Special limitations on amendment of applications and on
assignment or transfer of authorizations licensed under this subpart.
* * * * *
(d) A licensee may partially assign any authorization in accordance
with Sec. 90.1019.
* * * * *
3. Section 90.725 is amended by revising paragraph (a) introductory
text to read as follows:
Sec. 90.725 Construction requirements for Phase I licensees.
(a) Licensees granted commercial nationwide authorizations will be
required to construct base stations and placed those base stations in
operation as follows:
* * * * *
4. Section 90.1019 is revised to read as follows:
Sec. 90.1019 Partitioning and disaggregation.
(a) Definitions.
Disaggregation. The assignment of discrete portions or ``blocks''
of spectrum licensed to a geographic licensee or qualifying entity.
Partitioning. The assignment of geographic portions of a licensee's
authorized service area along geopolitical or other geographic
boundaries.
(b) Eligibility. (1) Phase I non-nationwide licensees may apply to
partition their licensed geographic service area or disaggregate their
licensed spectrum after constructing their systems and placing their in
operation or commencing service in accordance with the provisions in
Sec. 90.725(f) of this part.
(2) Phase I nationwide licensees may apply to partition their
licensed geographic service area or disaggregate their licensed
spectrum after constructing at least 40 percent of the geographic areas
designated in their applications in accordance with the provisions in
Sec. 90.725(a) of this part.
(3) Phase II licensees may apply to partition their licensed
geographic service area or disaggregate their licensed spectrum at any
time following the grant of their licenses.
(4) Phase I and Phase II licensees authorized to operate on
Channels 161 through 170 or Channels 181 through 185 are not eligible
to partition their geographic service area or disaggregate their
licensed spectrum.
(5) Parties seeking approval for partitioning and disaggregation
shall request authorization for partial assignment of a license
pursuant to Sec. 90.709 of this part, as amended.
(c) Technical Standards--(1) Partitioning. In the case of
partitioning, requests for authorization for partial assignment of a
license must include, as an attachment, a description of the
partitioned service area. The partitioned service area shall be defined
by coordinate points at every 3 degrees along the partitioned service
area agreed to by both parties, unless either an FCC-recognized service
area is utilized (i.e., Major Trading Area, Basic Trading Area,
Metropolitan Service Area, Rural Service or Economic Area) or county
lines are followed. The geographical coordinates must be specified in
degrees, minutes and seconds to the nearest second latitude and
longitude, and must be based upon the 1983 North American Datum
(NAD83). In the case where an FCC-recognized service area or county
lines are utilized, applicants need only list the specific area(s)
through use of FCC designations or county names that constitute the
partitioned area. In such partitioning cases where an unjust enrichment
payment is owed the Commission, the request for authorization for
partial assignment of a license must include, as an attachment, a
calculation of the population of the partitioned service area and
licensed geographic service area.
(2) Disaggregation. Spectrum may be disaggregated in any amount.
(3) Combined Partitioning and Disaggregation. The Commission will
consider requests for partial assignment of licenses that propose
combinations of partitioning and disaggregation. In the event that
there is a conflict in the application of the partitioning and
disaggregation rules, the partitioning rules take precedence.
(d) License Term. The license term for a partitioned license area
and for disaggregated spectrum shall be the remainder of the original
licensee's license term.
(e) Construction requirements--(1) Requirements for partitioning.
Phase II EA, Regional or nationwide licensees seeking authority to
partition must meet one of the following construction requirements:
(i) The partitionee may certify that it will satisfy the applicable
construction
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requirements set forth in Secs. 90.767 or 90.769 of this part, as
applicable, for the partitioned license area; or
(ii) The original licensee may certify that it has or will meet its
five-year construction requirement and will meet the ten-year
construction requirement, as set forth in Secs. 90.767 or 90.769 of
this part, as applicable, for the entire license area. In that case,
the partitionee must only satisfy the requirements for ``substantial
service,'' as set forth in Sec. 90.743(a)(1) of this part, for the
partitioned license area by the end of the original ten-year license
term of the licensee.
(iii) Applications requesting partial assignments of license for
partitioning must include a certification by each party as to which of
the above construction options they select.
(iv) Partitionees must submit supporting documents showing
compliance with the respective construction requirements within the
appropriate five-year and ten-year construction benchmarks set forth in
Sec. 90.767 or 90.769 of this part, as applicable.
(v) Failure by any partitionee to meet its respective construction
requirements will result in the automatic cancellation of the
partitioned license without further Commission action.
(2) Requirements for disaggregation. Parties seeking authority to
disaggregate spectrum from a Phase II EA, Regional or nationwide
license, must submit with their partial assignment application a
certification signed by both parties stating which of the parties will
be responsible for meeting the five-year and ten-year construction
requirements for the particular market as set forth in Sec. 90.767 or
90.769 of this part, as applicable. Parties may agree to share
responsibility for meeting the construction requirements. If one party
accepts responsibility for meeting the construction requirements and
later fails to do so, then its license will cancel automatically
without further Commission action. If both parties accept
responsibility for meeting the construction requirements and later fail
to do so, then both their licenses will cancel automatically without
further Commission action.
[FR Doc. 98-24625 Filed 9-14-98; 8:45 am]
BILLING CODE 6712-01-P