Sec.  27.14   Construction requirements; Criteria for comparative renewal
proceedings.

   (a) AWS and WCS licensees must make a showing of “substantial service” in
   their license area within the prescribed license term set forth in  Sec. 27.13.
   “Substantial” service is defined as service which is sound, favorable, and
   substantially above a level of mediocre service which just might minimally
   warrant renewal. Failure by any licensee to meet this requirement will
   result in forfeiture of the license and the licensee will be ineligible to
   regain it.

   (b) A renewal applicant involved in a comparative renewal proceeding shall
   receive a preference, commonly referred to as a renewal expectancy, which is
   the most important comparative factor to be considered in the proceeding, if
   its past record for the relevant license period demonstrates that:

   (1) The renewal applicant has provided “substantial” service during its past
   license term; and

   (2) The renewal applicant has substantially complied with applicable FCC
   rules, policies and the Communications Act of 1934, as amended.

   (c) In order to establish its right to a renewal expectancy, a WCS renewal
   applicant involved in a comparative renewal proceeding must submit a showing
   explaining why it should receive a renewal expectancy. At a minimum, this
   showing must include:

   (1) A description of its current service in terms of geographic coverage and
   population served;

   (2) An explanation of its record of expansion, including a timetable of new
   construction to meet changes in demand for service;

   (3) A description of its investments in its WCS system; and

   (4) Copies of all FCC orders finding the licensee to have violated the
   Communications Act or any FCC rule or policy; and a list of any pending
   proceedings that relate to any matter described in this paragraph.

   (d) In making its showing of entitlement to a renewal expectancy, a renewal
   applicant may claim credit for any system modification applications that
   were pending on the date it filed its renewal application. Such credit will
   not be allowed if the modification application is dismissed or denied.

   (e) BRS and EBS licensees must make a showing of “substantial service” no
   later than May 1, 2011. Incumbent BRS licensees must file their “substantial
   service” showing with their renewal application. “Substantial service” is
   defined as service which is sound, favorable, and substantially above a
   level of mediocre service which just might minimally warrant renewal.
   Substantial service for BRS and EBS licensees is satisfied if a licensee
   meets the requirements of paragraph (e)(1) or (e)(2) of this section. If a
   licensee has not met the requirements of paragraph (e)(1) or (e)(2) of this
   section, then demonstration of “substantial service” shall proceed on a
   case-by-case basis. All substantial service determinations will be made on a
   license-by-license basis. Except for BTA licenses, BRS licensees must file
   their “substantial service” showing with their renewal applications. Failure
   by any licensee to meet this requirement will result in forfeiture of the
   license and the licensee will be ineligible to regain it.

   (1) A BRS or EBS licensee has provided “substantial service” by:

   (i) Constructing six permanent links per one million people for licensees
   providing fixed point-to-point services;

   (ii) Providing coverage of at least 30 percent of the population of the
   licensed area for licensees providing mobile services or fixed
   point-to-multipoint services;

   (iii) Providing service to “rural areas” (a county (or equivalent) with a
   population density of 100 persons per square mile or less, based upon the
   most recently available Census data) and areas with limited access to
   telecommunications services:

   (A) For mobile service, where coverage is provided to at least 75% of the
   geographic area of at least 30% of the rural areas within its service area;
   or

   (B) For fixed service, where the BRS or EBS licensee has constructed at
   least one end of a permanent link in at least 30% of the rural areas within
   its licensed area.

   (iv) Providing specialized or technologically sophisticated service that
   does not require a high level of coverage to benefit consumers; or

   (v) Providing service to niche markets or areas outside the areas served by
   other licensees.

   (2) An EBS licensee has provided “substantial service” when:

   (i) The EBS licensee is using its spectrum (or spectrum to which the EBS
   licensee's educational services are shifted) to provide educational services
   within the EBS licensee's GSA;

   (ii) The EBS licensee's license is actually being used to serve the
   educational mission of one or more accredited public or private schools,
   colleges or universities providing formal educational and cultural
   development to enrolled students; or

   (iii) The level of service provided by the EBS licensee meets or exceeds the
   minimum usage requirements specified in  Sec. 27.1214.

   (3) An EBS or BRS licensee may be deemed to provide substantial service
   through a leasing arrangement if the lessee is providing substantial service
   under paragraph (e)(1) of this section. The EBS licensee must also be
   otherwise in compliance with this chapter (including the programming
   requirements in  Sec. 27.1203).

   [ 62 FR 9658 , Mar. 3, 1997, as amended at  65 FR 3146 , Jan. 20, 2000;  69 FR 5715 , Feb. 6, 2004;  71 FR 35189 , June 19, 2006]