82_FR_41699 82 FR 41530 - Uniform License Renewal, Discontinuance of Operation, and Geographic Partitioning and Spectrum Disaggregation Rules and Policies for Certain Wireless Radio Services

82 FR 41530 - Uniform License Renewal, Discontinuance of Operation, and Geographic Partitioning and Spectrum Disaggregation Rules and Policies for Certain Wireless Radio Services

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 82, Issue 169 (September 1, 2017)

Page Range41530-41549
FR Document2017-18501

In this document, the Federal Communications Commission adopts rules to streamline and harmonize the Commission's license renewal and service continuity rules for the Wireless Radio Services (WRS). This unified regulatory framework includes: establishing a consistent standard for renewing wireless licenses; setting forth safe harbors providing expedited renewal for licensees that meet their initial term construction requirement and generally remain operating at or above that level; adopting consistent service continuity rules, which provide for automatic termination of any license on which a licensee permanently discontinues service or operation; eliminating unnecessary, legacy ``comparative renewal rules''; and requiring that when portions of geographic licenses are sold, both parties to the transaction have a clear construction obligation and penalty in the event of failure, closing a loophole used to avoid the Commission's construction requirements. This action will enhance competition and facilitate robust use of the nation's scarce spectrum resources.

Federal Register, Volume 82 Issue 169 (Friday, September 1, 2017)
[Federal Register Volume 82, Number 169 (Friday, September 1, 2017)]
[Rules and Regulations]
[Pages 41530-41549]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-18501]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 22, 24, 27, 30, 74, 80, 90, 95, and 101

[WT Docket No. 10-112; FCC 17-105]


Uniform License Renewal, Discontinuance of Operation, and 
Geographic Partitioning and Spectrum Disaggregation Rules and Policies 
for Certain Wireless Radio Services

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission adopts 
rules to streamline and harmonize the Commission's license renewal and 
service continuity rules for the Wireless Radio Services (WRS). This 
unified regulatory framework includes: establishing a consistent 
standard for renewing wireless licenses; setting forth safe harbors 
providing expedited renewal for licensees that meet their initial term 
construction requirement and generally remain operating at or above 
that level; adopting consistent

[[Page 41531]]

service continuity rules, which provide for automatic termination of 
any license on which a licensee permanently discontinues service or 
operation; eliminating unnecessary, legacy ``comparative renewal 
rules''; and requiring that when portions of geographic licenses are 
sold, both parties to the transaction have a clear construction 
obligation and penalty in the event of failure, closing a loophole used 
to avoid the Commission's construction requirements. This action will 
enhance competition and facilitate robust use of the nation's scarce 
spectrum resources.

DATES: Effective October 2, 2017, except for the amendments to 
Sec. Sec.  1.949, 1.950, and 1.953, which contain information 
collection requirements that require approval by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act (PRA), 
and which the Commission will announce by publishing a document in the 
Federal Register. The amendments to paragraphs (e), (q)(7), (r)(6), 
(s)(6), and (t)(6) of Sec.  27.14 will become effective after OMB 
review and approval of Sec.  1.949, which the Commission will announce 
by publishing a document in the Federal Register; and the amendments to 
Sec. Sec.  22.317, 22.947, 27.17, 30.106, 74.632, 90.157, 90.631, and 
101.65 will become effective after OMB review and approval of Sec.  
1.953, and which the Commission will announce by publishing a document 
in the Federal Register.

FOR FURTHER INFORMATION CONTACT: Joyce Jones at [email protected], of 
the Wireless Telecommunications Bureau, Mobility Division, (202) 418-
1327. For additional information concerning the PRA information 
collection requirements contained in this document, contact Cathy 
Williams at (202) 418-2918 or send an email to [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second 
Report and Order (Order) in WT Docket No. 10-112, FCC 17-105, released 
on August 3, 2017. The complete text of the Order, including all 
Appendices, is available for inspection and copying during normal 
business hours in the FCC Reference Center, 445 12th Street SW., Room 
CY-A157, Washington, DC 20554, or by downloading the text from the 
Commission's Web site at https://apps.fcc.gov/edocs_public/attachmatch/FCC-17-105A1.pdf.
    Alternative formats are available for people with disabilities 
(Braille, large print, electronic files, audio format), by sending an 
email to [email protected] or calling the Consumer and Government Affairs 
Bureau at (202) 418-0530 (voice), (202) 418-0432 (TTY).
    The Commission will send a copy of the Order in a report to be sent 
to Congress and the Government Accountability Office pursuant to the 
Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).

I. Second Report and Order

A. Renewal Requirements for Wireless Radio Services

    1. Commission licensing records reflect that, over the next 10 
years, the Commission can expect more than 50,000 renewal applications 
to be filed by geographic-area licensees and more than 625,000 by site-
based licensees. By its Order, the Commission implements standardized 
renewal requirements and expeditious renewal procedures, while 
continuing to ensure that licenses are renewed in the public interest 
as required by the Communications Act of 1934, as amended (Act). The 
Commission finds that adoption of uniform renewal rules will promote 
the efficient use of spectrum resources, serve the public interest by 
providing licensees certainty regarding their license renewal 
requirements, encourage licensees to invest in new facilities and 
services, and facilitate their business and network planning.
    2. The Commission's current renewal requirements vary widely. Some 
service rules include comprehensive filing and processing procedures, 
while others contain only minimal guidance. For example, some radio 
services have evaluation criteria for a renewal applicant involved in a 
comparative renewal proceeding but no procedures for filing competing 
applications. Some services require a detailed showing that the 
licensee has provided substantial service during the license term. The 
renewal rules for some of the Commission's newer services generally 
require the licensee to be providing service or operating on an ongoing 
basis, after construction, during the license term.
    3. In an NPRM released on May 25, 2010 (WT Docket No. 10-112) (WRS 
Reform NPRM), the Commission proposed to adopt renewal requirements for 
numerous Wireless Radio Services based on the Commission's model for 
the 700 MHz Commercial Services Band licensees. Under this three-part 
approach: (1) Renewal applicants would file a detailed renewal showing, 
demonstrating that they are providing service to the public (or, when 
allowed under the relevant service rules or pursuant to waiver, using 
the spectrum for private, internal communications) and substantially 
complying with the Commission's rules (including any applicable 
performance requirements) and policies and the Act; (2) competing 
renewal applications would be prohibited; and (3) if a license is not 
renewed, the associated spectrum would be returned to the Commission 
for reassignment. For services licensed by site, the Commission 
proposed to modify the first part of this approach by requiring 
affected licensees to certify that they are continuing to operate 
consistent with their applicable construction notification(s) or 
authorization(s) (where the filing of construction notifications is not 
required), rather than making a renewal showing.
    4. Renewal Standard. The Commission adopts a unified renewal 
standard for most Wireless Radio Services licensees, both geographic 
and site-based. A clear, consistent standard will promote the efficient 
use of spectrum resources and will serve the public interest by 
providing licensees certainty regarding their renewal requirements. To 
qualify for renewal, each WRS licensee must demonstrate that over the 
course of its license term, the licensee either: (1) Provided and 
continues to provide service to the public, taking into account the 
periods of time the applicable service-specific rules give licensees to 
construct facilities and meet performance benchmarks, or (2) operated 
and continues to operate over the course of the license term to address 
the licensee's private, internal communications needs, again taking 
into account the periods of time the applicable service-specific rules 
give licensees to construct facilities and meet performance benchmarks.
    5. More specifically, for renewal at the end of an initial license 
term, the licensee must demonstrate that it timely constructed to any 
level(s) required by the service-specific rules and, thereafter, 
consistent with the Commission's permanent discontinuance rules, 
continuously provided service or operated at or above the required 
level(s) for the remainder of the license term. For subsequent 
renewals, the licensee must demonstrate that, over the license term at 
issue, it continuously provided service to the public or operated under 
the license to meet the licensee's private, internal communications 
needs, at or above the level required to meet the final construction 
requirement during the initial term of the license. In all events, the 
licensee also must certify that its service or operations are 
continuing. This requirement is reflected in the new

[[Page 41532]]

Sec.  1.949 the Commission adopts today, which replaces separate 
renewal rules for each service in various rule parts, as reflected in 
the final rules.
    6. The renewal standard the Commission adopts today follows the 
approach the Commission adopted in many of its proceedings for new 
wireless services over the past decade. Beginning with the 700 MHz 
First Report and Order in 2007 (WT Docket No. 06-150), and continuing 
to the 2016 600 MHz Report and Order (GN Docket No. 12-268), the 
Commission has established that licensees ``must demonstrate that they 
are providing adequate levels of service over the course of their 
license terms.'' Most recently, the Commission applied the same 
principles in the Spectrum Frontiers Report and Order (GN Docket No. 
14-177), concluding that Upper Microwave Flexible Use Service (UMFUS) 
licensees would meet the renewal standard in their initial license 
terms if they met certain performance benchmarks and were ``using 
[their] facilities to provide service.'' For subsequent license terms, 
the Commission concluded that it would ``award a renewal expectancy for 
subsequent license terms if the licensee continues to provide at least 
the initially-required level of service through the end of any 
subsequent license terms.'' Today, the Commission applies that policy 
across the board to most WRS licenses, finding that these renewal 
requirements are in the public interest and their benefits outweigh any 
likely costs.
    7. As the Commission has stated in a number of decisions, a 
licensee's renewal obligations are distinct from its performance (also 
known as construction or buildout) requirements. Many of the 
Commission's specific service rules require performance showings to be 
made at the midpoint and end of an initial license term regarding 
population or area covered. For some services, licensees must 
demonstrate, or may elect to demonstrate, substantial service as their 
performance requirement during their initial license term. Under the 
Commission's performance requirement rules, a licensee generally 
provides a snapshot in time (usually a date in close proximity to, but 
no later than, the construction deadline) of the level of service that 
it is providing to the public or its level of operation. By contrast, 
the showing for renewal--also sometimes referred to as a substantial 
service showing--requires more detailed information regarding a 
licensee's services or operations and related matters for its entire 
license period. Thus, under the Commission's current rules, those 
licensees with a substantial service performance requirement at the end 
of their initial license term are subject to two distinct substantial 
service requirements, one to support their renewal application and one 
for performance purposes. The renewal standard the Commission adopts 
today and the accompanying discussion should make it more readily 
apparent to licensees that the showing required for renewal is distinct 
from the showing required to meet a performance requirement.
    8. As the Commission stated in the WRS Reform NPRM, the Wireless 
Radio Services that are licensed by rule or on a ``personal'' basis or 
that have no construction/performance obligation are beyond the scope 
of this proceeding and are not encompassed within the renewal policies 
the Commission adopts today. Similarly, these policies do not extend to 
public safety licenses issued based on the applicant demonstrating 
eligibility under Sec. Sec.  90.20 or 90.529, or public safety licenses 
issued in conjunction with a waiver pursuant to section 337 of the Act. 
The Commission also excludes the Educational Broadband Service (EBS) 
from application of the renewal requirements articulated in the Order 
since this service presents unique issues that are under consideration 
in a separate, comprehensive EBS rulemaking proceeding (See WT Docket 
No. 03-66).
    9. In contrast, the Commission finds it is no longer necessary to 
provide any sort of modified renewal requirements for Broadband Radio 
Service (BRS) licensees as the Commission had proposed in the WRS 
Reform NPRM. Given that the BRS transition, which began in 2010, is now 
complete, the Commission concludes that the BRS is appropriately 
included within the overall renewal framework now. The Commission also 
rejects Motorola's request that the partitioned and/or disaggregated 
Part 80 VHF Public Coast (VPC) Service spectrum it acquired for the 
purpose of promoting public safety and private land mobile systems be 
excluded from application of the Commission's generally applicable 
renewal framework. The Commission is not persuaded that the 
characteristics of the Motorola-held VPC Service spectrum and its 
planned usage warrant different treatment from other WRS licenses 
regarding the renewal rules, and thus the Commission does not grant the 
exception from the renewal policies sought by Motorola.
    10. Implementation of Renewal Standard. Many commenters express 
concern that the renewal framework proposed in the WRS Reform NPRM 
would cause uncertainty in the renewal process and create undue 
administrative burdens for licensees and Commission staff. Some 
commenters suggest that the Commission apply a certification process 
for all renewal applications. Other commenters suggest that the 
Commission should adopt some form of a safe harbor.
    11. The Commission agrees that clearer and more certain renewal 
processes will benefit both licensees and the Commission and concludes 
that adopting a set of safe harbors--based on licensee certifications--
will serve the public interest by reducing filing burdens on licensees 
and concentrating scarce Commission resources on reviewing renewal 
filings that warrant close scrutiny. Accordingly, the Commission adopts 
four safe harbors to accommodate four license renewal scenarios by 
which a renewal applicant can meet the renewal standard adopted in this 
Order. These license renewal safe harbors are for (1) site-based 
licenses; (2) wireless providers using geographic licenses; (3) private 
systems using geographic licenses; and (4) partitioned or disaggregated 
licenses without a performance requirement. In a future proceeding, the 
Commission may consider additional safe harbors as necessary and 
warranted. If a licensee is unable to meet the requirements of one of 
the enumerated safe harbors, the licensee must make a more detailed 
``renewal showing'' as part of its renewal application; the 
requirements for a renewal showing are described following the 
discussion of the renewal safe harbors.
    12. Each safe harbor scenario is based on three certifications, 
which are subject to the Form 601 condition that ``[w]illful false 
statements made on this form or any attachments are punishable by fine 
and/or imprisonment (18 U.S.C. 1001) and/or revocation of any station 
license or construction permit (47 U.S.C. 312(a)(1)), and/or forfeiture 
(47 U.S.C. 503).'' If the renewal applicant, in good faith, can make 
all three certifications, its renewal application will be subject to 
routine processing, and no further detailed renewal showing will be 
required as part of the renewal application. The first certification in 
each scenario addresses the renewal applicant's ongoing provision of 
service and/or operations, and is tailored to the particular nature of 
licenses covered under a given safe harbor. The second certification 
requires the licensee to certify that no permanent discontinuance of 
service or operation (as defined below as an unbroken failure to 
provide service or operate over a

[[Page 41533]]

specified period of days) occurred during the license term. The third 
certification requires the licensee to certify that it has 
substantially complied with all applicable FCC rules, policies, and the 
Act.
    13. Site-based Licenses. Consistent with the Commission's 
certification proposal in the WRS Reform NPRM for the renewal of site-
based licensees, the Commission adopts a safe harbor for site-based WRS 
licensees. With site-based services, a licensee's initial application 
for authorization provides the exact technical parameters of its 
planned operations (such as transmitter location, frequency, and power 
levels), while the licensee's subsequent notification, that it has 
completed construction, confirms that the facilities have been 
constructed consistent with its authorization (or with minor 
modifications as may be permitted by the applicable service rules). A 
licensee also may file to modify its license, which may lead to a 
modified authorization and the submission of a subsequent construction 
notification. Consequently, at the time a site-based service provider 
files a renewal application, it should be operating as licensed.
    14. A site-based WRS licensee will meet the Commission's renewal 
standard if it can certify that it is continuing to operate consistent 
with the licensee's most recently filed construction notification (or 
most recent authorization, when no construction notification is 
required), and make the certifications regarding permanent 
discontinuance and substantial compliance with Commission rules and 
policies that are applicable to all renewal applicants seeking to avail 
themselves of one of the renewal safe harbors. Consistent with the 
Commission's treatment of wireless providers using geographic licenses 
as discussed below, licensees who temporarily reduce their operations 
for fewer than 180 days may avail themselves of the safe harbor. The 
Commission concludes that this safe harbor for site-based WRS licensees 
is in the public interest and will expedite the renewal process for 
licensees, ensure spectrum is being used efficiently to provide service 
to the public or for private internal needs, and allow Commission staff 
to concentrate scarce resources on renewal applications that warrant 
heightened scrutiny. Moreover, applying the safe harbor process to 
site-based services will ensure that renewed licenses in these services 
are being operated, and if they are not, the licensee must submit a 
renewal showing as discussed below. This safe harbor may be used by any 
site-based WRS license in the services listed in Appendix G of the 
Order.
    15. Wireless Providers Using Geographic Licenses. The Commission 
also finds that it would be in the public interest to adopt a safe 
harbor for WRS licensees that provide service to customers using 
geographic licenses. Many commenters urge the Commission to adopt a 
streamlined certification process for renewal of geographic licenses 
like what the Commission proposed for site-based licenses. Most 
recently, Verizon argues that a straightforward renewal certification 
``will obligate the licensee to verify that it is complying with the 
terms of its authorization and Commission rules, including buildout, 
spectrum utilization, or other performance requirements.'' Similarly, 
CTIA maintains that a certification for geographic license renewal 
``would require that licensees verify that they have complied with all 
buildout, performance, and other rules--demonstrating that they are 
providing service--without imposing unjustified burdens.'' Both Verizon 
and CTIA argue that a certification is consistent with the renewal 
standard adopted in the Spectrum Frontiers Order for the millimeter 
wave spectrum bands at 28 GHz, 37 GHz, and 39 GHz. The Commission 
agrees that a certification, as part of a comprehensive safe harbor for 
geographic licenses, will streamline its renewal processes, ensure 
compliance with its rules, and provide clarity and certainty for WRS 
licensees.
    16. Accordingly, the Commission adopts a safe harbor for WRS 
providers using geographic licenses consistent with the approach taken 
in the Spectrum Frontiers Order. A geographically-licensed WRS licensee 
providing service to customers will meet the renewal standard if it can 
make the following certifications. For a licensee in its initial 
license term \1\ with an interim performance requirement, the licensee 
must certify that (1) it has met its interim performance requirement 
and that over the portion of the license term following the interim 
performance requirement (up until the deadline for meeting the final 
performance requirement), the licensee continues to use its facilities 
\2\ to provide at least the level of service or operation required by 
its interim performance requirement,\3\ and (2) it has met its final 
performance requirement and continues to use its facilities to provide 
at least the level of service required by its final performance 
requirement through the end of the license term. For a licensee in its 
initial license term with no interim performance requirement, the 
licensee must certify that it has met its final performance requirement 
and continues to use its facilities to provide at least the level of 
service required by its final performance requirement through the end 
of the license term.\4\ For a licensee in any subsequent license term, 
the licensee must certify that it continues to use its facilities to 
provide at least the level of service required by its last performance 
requirement through the end of any subsequent license terms. Some 
commenters ask the Commission to recognize that there are circumstances 
(e.g., network upgrades, natural disasters, power outages, routine 
maintenance, temporary service outages) during which a licensee may 
need to ``reduce overall coverage below the level required by buildout 
requirements, or briefly turn down service . . . for a limited 
period.'' CTIA maintains that ``these events should not disqualify a 
licensee from using the safe harbor.'' Thus, the Commission clarifies 
that licensees who temporarily drop below their construction benchmark 
for fewer than 180 days may avail themselves of the safe harbor. In 
addition, the licensee must make the certifications regarding permanent 
discontinuance and substantial compliance with Commission rules and 
policies that are applicable to all renewal applicants seeking to avail 
themselves of one of the renewal safe harbors. This safe harbor may be 
used

[[Page 41534]]

by geographic licensees in the Wireless Radio Services listed in 
Appendix H of the Order.
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    \1\ For performance showing requirements at the end of the 
initial license term, there are two filing processes in ULS 
depending on the service of the license. For some services, 
licensees file a notification of construction (NT) and a separate 
renewal application. For other services, licensees include their 
performance showing as an exhibit to the renewal application and do 
not file a separate NT. Under either filing method, the licensee 
would certify in its renewal application that it has submitted a 
final performance showing in good faith, but acceptance of its safe 
harbor renewal certification is contingent on the Commission's 
review and acceptance of the performance showing. This is true as 
well for private systems using geographic licenses.
    \2\ The Commission determines that use of facilities includes 
operations under any spectrum leasing arrangement.
    \3\ The Commission notes that any licensee that fails to meet 
its interim performance requirement will not be able to avail itself 
of this safe harbor option at the end of the initial license term 
because it will be unable to certify that it has met its interim 
performance requirement.
    \4\ The Commission recognizes that a licensee may file a renewal 
application as early as 90 days prior to license expiration. 47 CFR 
1.949(a). The Commission notes that a licensee with a performance 
requirement deadline coincident with its license expiration date 
must meet any applicable performance requirement before it can 
certify compliance with the safe harbor requirements and file a 
renewal application.
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    17. Private Systems Using Geographic Licenses. The Commission finds 
that the public interest will be served by adopting a separate safe 
harbor for private systems using geographic licenses. In the WRS Reform 
NPRM, the Commission queried what factors should be considered during 
renewal of licenses used for a licensee's private, internal 
communications needs. Commenters generally object to applying the WRS 
Reform NPRM's proposed renewal framework to geographic licensees that 
deploy private, internal communications systems. Instead, numerous 
commenters urge the Commission to adopt a certification for such 
licensees. The Commission agrees that a certification, as part of a 
comprehensive safe harbor for geographic licensees using their licenses 
for private, internal purposes, will streamline its renewal processes, 
ensure compliance with its rules, and provide clarity and certainty for 
such licensees.
    18. Accordingly, the Commission adopts a safe harbor for WRS 
licensees using their geographic licenses for private, internal 
systems. A geographically licensed WRS licensee using its license for 
private, internal purposes will meet the renewal standard if it can 
make the following certifications. For a licensee in its initial 
license term with an interim performance requirement, the licensee must 
certify that (1) it has met its interim performance requirement and 
that over the portion of the license term following the interim 
performance requirement (up until the deadline for meeting the final 
performance requirement), the licensee continues to use its facilities 
to further the licensee's private, internal business or public 
interest/public safety needs at or above the level required to meet its 
interim performance requirement, and (2) it has met its final 
performance requirement and continues to use its facilities to further 
the licensee's private business or public interest/public safety needs 
at or above the level required by its final performance requirement 
through the end of the license term. For a licensee in its initial 
license term with no interim performance requirement, the licensee must 
certify that it has met its final performance requirement and continues 
to use its facilities to further the licensee's private business or 
public interest/public safety needs at or above the level required by 
its final performance requirement through the end of the license term. 
For a licensee in any subsequent license term, the licensee must 
certify that it continues to use its facilities to further the 
licensee's private business or public interest/public safety needs at 
or above the level required to meet its last performance requirement. 
Consistent with the treatment of wireless providers using geographic 
licenses as discussed above, licensees who temporarily drop below their 
construction benchmark for fewer than 180 days may avail themselves of 
the safe harbor. In addition, the licensee must make the certifications 
regarding permanent discontinuance and substantial compliance with 
Commission rules and policies that are applicable to all renewal 
applicants seeking to avail themselves of one of the renewal safe 
harbors. This safe harbor may be used by geographic area licensees in 
the Wireless Radio Services listed in Appendix H of the Order.
    19. Partitioned or Disaggregated Licenses. As discussed in more 
detail below, the Commission's rules permit parties to partitioning or 
disaggregation agreements to choose between two options to determine 
how the parties will satisfy any relevant pending performance 
requirement for the license after it has been divided by geographic 
partitioning or spectrum disaggregation arrangements. In cases where 
the original licensee has satisfied the applicable performance 
requirement prior to partitioning or disaggregating the license, 
however, the recipient of the partitioned area or disaggregated 
spectrum has no performance requirement associated with the partitioned 
or disaggregated portion. This lack of a performance requirement is 
relevant in the renewal context because, while the partitioner or 
disaggregator may be able to meet a safe harbor (to demonstrate that 
over the course of its license term, the licensee provided and 
continues to provide service to the public, or operated and continues 
to operate the license to meet the licensee's private, internal 
communications needs), the partitionee or disaggregatee will not be 
able to avail itself of the safe harbors as adopted above because it 
cannot certify continuing service or operation consistent with its 
final performance requirement because it has none. Accordingly, the 
safe harbor approach must be adjusted to provide the partitionee or 
disagregatee with a mechanism for demonstrating compliance with the 
renewal standard.
    20. To this end, the Commission adopts an approach that applies to 
WRS licensees with partitioned or disaggregated licenses when there is 
no performance requirement. Such a licensee will meet the renewal 
standard if it can satisfy the following safe harbor. The licensee must 
certify that it uses and continues to use its facilities either to 
provide service to the public or to further the licensee's private, 
internal business or public interest/public safety needs. Thus, 
although the Commission does not impose a specific performance 
requirement for such licensees at renewal of the current license term, 
in order to avail itself of the streamlined safe harbor renewal process 
for any subsequent license term, a licensee without a performance 
requirement must demonstrate some level of service or operation over 
the subsequent license term. In addition, the licensee must make the 
certifications regarding permanent discontinuance (as defined below) 
and substantial compliance with Commission rules and policies that are 
applicable to all renewal applicants seeking to avail themselves of one 
of the renewal safe harbors. This safe harbor may be used by any WRS 
licensee with a partitioned or disaggregated license without an 
associated performance requirement. Any licensee that cannot meet the 
requirements of the safe harbor must submit a renewal showing as 
discussed below.
    21. The Commission recognizes that this safe harbor, unlike the 
others, does not prescribe a specific level of service or operation 
required for renewal. As the Commission has explained, however, ``[t]he 
goal of our construction requirements in both the partitioning and 
disaggregation contexts 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.'' In the scenario addressed 
here, the partitioner or disaggregator has already met the associated 
performance requirement for the license; any additional construction 
undertaken by the partitionee or disaggregatee exceeds the relevant 
performance benchmark for the original license and thus does not 
contravene the goal of the Commission's construction requirement in the 
partitioning and disaggregation context. However, the Commission 
contemplates taking action if it appears that parties to a partitioning 
or disaggregation are attempting to abuse its rules.
    22. Renewal Showing. The Commission seeks to provide licensees with 
certainty and clarity regarding the renewal process, and thus have 
adopted four safe harbors to provide licensees with a streamlined 
mechanism for meeting the renewal standard. The Commission expects that 
most licensees will be able to avail themselves of its streamlined safe 
harbor process and

[[Page 41535]]

receive timely renewal grants. In the event a licensee is unable to 
meet the requirements of any of the enumerated safe harbors, however, 
it must file a ``renewal showing'' to demonstrate how it meets the 
renewal standard the Commission adopts in this Order. Examples of 
licensees that will not be able to meet a safe harbor, but for whom 
there nonetheless may be legitimate bases that warrant renewal, include 
a licensee that no longer provides service or no longer operates at the 
level required to meet its final performance requirement, or a licensee 
that has modified its service or operations since its final performance 
requirement to offer novel services or employ a unique system 
architecture. These scenarios warrant additional scrutiny before the 
Commission can determine whether license renewal is in the public 
interest. The Commission reiterates that it will not require renewal 
applicants to file a renewal showing if they can meet the renewal 
standard via a safe harbor.
    23. In the WRS Reform NPRM, the Commission proposed to require all 
renewal applicants to meet its renewal standard by filing a detailed 
renewal showing to demonstrate that they are providing service to the 
public (or, when allowed under the relevant service rules or pursuant 
to waiver, using the spectrum for private, internal communication), and 
substantially complying with the Commission's rules (including any 
applicable performance requirements) and policies and the Act. The 
Commission now turns toward a consideration of this proposed standard 
for cases in which a renewal applicant does not meet one of the safe 
harbors adopted herein.
    24. The renewal showing proposed in the WRS Reform NPRM followed 
the paradigm adopted in the 700 MHz Report and Order. After the release 
of the WRS Reform NPRM, the Commission has adopted the 700 MHz 
Commercial Services renewal paradigm in four additional services--AWS-
4, H Block, AWS-3, and 600 MHz. Specifically, the Commission proposed 
to consider the following factors when evaluating whether a renewal 
showing met the renewal standard: (1) The level and quality of service 
provided by the applicant (e.g., the population served, the area 
served, the number of subscribers, the services offered); (2) the date 
service commenced, whether service was ever interrupted, and the 
duration of any interruption or outage; (3) the extent to which service 
is provided to rural areas; (4) the extent to which service is provided 
to tribal lands; and (5) any other factors associated with a licensee's 
level of service to the public.
    25. Many commenters object to the adoption of this renewal showing 
for all WRS licensees. These commenters argue that the proposed renewal 
showing is complex and would impose substantial costs and burdens on 
licensees. Other commenters assert that the proposed renewal process is 
unclear and creates uncertainty for licensees. Still other commenters 
maintain that the proposed process requests information already in the 
Commission's possession, requests detailed information that licensees 
do not maintain, and may require disclosure of competitively sensitive 
information. The Commission acknowledges commenters' many concerns 
regarding a general requirement that all WRS licensees submit detailed 
renewal showings and have concluded that, in many cases, streamlined 
applications containing the required certifications for safe harbor 
treatment will be sufficient to ensure that the Commission renews 
licenses in the public interest, consistent with the Act. The 
Commission emphasizes that licensees that can take advantage of one of 
the ``safe harbor'' renewal applications described above will not be 
required to submit a renewal showing as part of their renewal 
applications. Rather, only licensees that cannot satisfy one of the 
enumerated safe harbors will be required to file a detailed renewal 
showing. To fulfill the Commission's statutory mandate to ensure 
efficient spectrum use consistent with the public interest, where a 
licensee does not satisfy one of the streamlined processes, the 
Commission must undertake a closer examination of a licensee's record 
of service or operation over its license term. Consistent with the 
Commission's conclusions in the AWS-4, H Block, AWS-3, and 600 MHz 
proceedings, the Commission finds that the renewal showing it adopts 
today, applied in the limited circumstances described herein, is in the 
public interest and its benefits outweigh any likely costs.
    26. Accordingly, licensees that cannot satisfy the renewal standard 
under one of the enumerated safe harbors can nonetheless meet the 
renewal standard by demonstrating that they are providing service to 
the public (or, when allowed under the relevant service rules or 
pursuant to waiver, using the spectrum for private, internal 
communication), using the following renewal showing, as applicable:
    (1) The level and quality of service/operation provided by the 
applicant (e.g., for service--the population served, the area served, 
the number of subscribers, the services offered; for operation--the 
number of users (if applicable), the operating area, the type of 
operation);
    (2) the date service/operation commenced, whether service/operation 
was ever interrupted, and the duration of any interruption or outage;
    (3) the extent to which service/operation is provided to/in rural 
areas;
    (4) the extent to which service/operation is provided to/in tribal 
lands; and
    (5) any other factors associated with a licensee's level of service 
to the public/level of operation.
    27. Each of the factors listed above to be considered in a renewal 
showing directly relates to the renewal standard the Commission adopts 
today--service or operation over the license term. The Commission will 
consider the totality of all the factors on a case-by-case basis to 
determine if a licensee has demonstrated over the course of its license 
term that it has provided and continues to provide service to the 
public, or has operated and continues to operate under the license to 
meet the licensee's private, internal communications needs.
    28. In the WRS Reform NPRM, the Commission also asked whether a 
variety of other factors should be incorporated into the renewal rules. 
Many commenters object to the collection of additional data in support 
of a renewal showing. On balance, the Commission agrees that the costs 
of requesting additional information beyond the renewal showing as 
adopted would outweigh the benefits of such additional information. The 
Commission thus decides not to add further factors at this time to the 
renewal showing requirements. The Commission finds that its renewal 
framework strikes an appropriate balance between the need for 
information to fully evaluate renewal applications that cannot meet the 
safe harbors and minimizing burdens on licensees.
    29. The Commission disagrees with commenters that argue that the 
option of filing a full renewal showing would be contrary to the 
Commission's original proposal for site-based services. Under the 
Commission's prior proposal, if a site-based licensee could not make 
the requisite certification, the renewal application could not be 
granted and the spectrum would be returned to the Commission. Under the 
renewal framework the Commission adopts today, if a site-based licensee 
cannot meet the requirements of the safe harbor, it may choose to file 
a renewal showing to explain why it should

[[Page 41536]]

nonetheless retain its license, thus providing additional flexibility 
to such a licensee.
    30. Implementation Timeline. The renewal framework represents, for 
some WRS licenses, a significant change in how the Commission will 
evaluate and process renewal applications going forward.\5\ For 
licensees that already meet the renewal standard, the unified renewal 
paradigm presents a streamlined process using safe harbors with minimal 
filing burdens and certain, timely renewal processing. The Commission 
recognizes, however, that other licensees will need time to come into 
compliance with the renewal standard. Accordingly, the Commission 
adopts an implementation schedule that will make the benefits of the 
renewal framework available immediately for those licensees most likely 
able to avail themselves of the streamlined processes, but provide 
ample time for those licensees that may need to come into compliance 
with the new rules. In all instances, compliance with the renewal 
standard, via either a safe harbor or renewal showing, will be assessed 
from the effective date of the new rules. Thus, for example, the 
requirement to provide continuous service/operation does not cover 
periods before the effective date of those rules. Nor does a licensee 
seeking safe harbor treatment need to certify that it met the necessary 
criteria during time periods prior to the effective date.
---------------------------------------------------------------------------

    \5\ Because substantial compliance with applicable FCC rules and 
policies and the Act is an ongoing obligation of licensees, this 
will be assessed over the entire term of the license at renewal.
---------------------------------------------------------------------------

    31. Site-based Licenses. For site-based licensees, the new renewal 
paradigm is akin to their existing renewal requirements. As discussed 
above, at the time a site-based service provider files a renewal 
application, it should be operating as licensed. Thus, current renewal 
requirements for site-based licensees are much like the safe harbor the 
Commission adopts for such licensees. The Commission finds that the 
renewal standard and renewal processes (whether streamlined or 
entailing an evaluation of the licensee's full renewal showing) should 
be made available to site-based licensees as soon as possible and thus 
determines that such rules will be applied to those licensees without a 
transition period, with one exception, effective upon their applicable 
effective dates. For microwave licenses in the Common Carrier Fixed 
Point-to-Point Microwave Service, licensees will not be required to 
comply with the revised renewal rules for site-based licenses until 
October 1, 2018, in order to provide sufficient time for them to 
undertake a compliance review necessary to make the required 
certification regarding operation. Existing service-specific renewal 
rules will remain in effect until the renewal rules adopted herein 
become effective. Applications filed prior to the effective date of the 
new rules will be processed under the rules in effect when they are 
filed.
    32. Geographic-area Licenses. Given the inconsistency of the 
Commission's renewal rules across wireless services, the Commission has 
seen markedly different renewal submissions by licensees describing the 
level of service or operation in the various specific services within 
the WRS. Some licensees have submitted renewal applications clearly 
demonstrating service or operation over the entire license term, which 
would meet the renewal standard the Commission adopts today. Others 
have filed applications that demonstrate service or operation over 
significantly less than the entire license term, which would not meet 
the Commission's new renewal standard contemplating ongoing service or 
operation during the license term. The Commission seeks to provide 
sufficient time to geographic-area licensees that have yet to be 
subject to the renewal standard so that they can comply with the new 
standard (indeed, some licensees are not yet required to even 
demonstrate service over the license term). The Commission determines 
that the renewal standard and the renewal framework will take effect 
for such licensees on January 1, 2023, replacing the existing service-
specific renewal rules, giving licensees at least five years to comply 
with the new renewal rules (giving all licensees sufficient time to 
show service over the license term, starting from the effective date of 
the new renewal rules). Existing service-specific renewal rules will 
cease to be effective as of January 1, 2023. The Commission notes, 
however, that licensees in the 700 MHz, AWS-4, H Block, AWS-3, and 600 
MHz services already are subject to the renewal standard that it adopts 
today for all WRS geographic licenses. Accordingly, the Commission 
concludes that these licensees should be able to avail themselves of 
the safe harbors and associated streamlined procedures prior to January 
1, 2023. Thus, for licensees in the 700 MHz, AWS-4, H Block, AWS-3, and 
600 MHz services, the safe harbor rules will apply immediately upon 
their effective dates. Existing service-specific renewal rules will 
remain in effect until the renewal rules adopted herein become 
effective. Applications filed prior to the effective date of the new 
rules will be processed under the rules in effect when they are filed.
    33. Geographic and Site-based Licensed Services--Other 
Requirements. Consistent with the Commission's proposal in the WRS 
Reform NPRM, the Commission applies a single regulatory compliance 
demonstration requirement to all renewal applicants, whether licensed 
by geographic area or by site. In addition, the Commission prohibits 
the filing of competing applications against such renewal applications. 
Further, if a renewal application cannot be granted, the associated 
spectrum generally will be returned to the Commission for re-licensing 
under the applicable processes.
    34. Regulatory Compliance Demonstration. In the 700 MHz First 
Report and Order, the Commission stated that, as part of their renewal 
filing, renewal applicants must demonstrate ``that they have 
substantially complied with all applicable Commission rules, policies, 
and the Communications Act of 1934, as amended, including any 
applicable performance requirements.'' As the Commission stated in the 
WRS Reform NPRM, such a regulatory compliance demonstration serves the 
public interest by facilitating the Commission's evaluation of the 
character and other qualifications of a renewal applicant.
    35. To aid in this evaluation, the Commission proposed a detailed 
submission of documents regarding compliance by the licensee and 
certain defined affiliates. Industry commenters uniformly opposed 
adoption of the proposed regulatory compliance demonstration as a 
prerequisite to renewal on the basis that it is onerous and unduly 
burdensome and could impose significant costs, particularly on rural 
and regional carriers.
    36. The Commission has a statutory duty to ensure that licensees 
substantially comply with all applicable Commission rules and policies 
and the Act. At the same time, where possible and practicable, the 
Commission seeks to streamline the existing renewal application 
processes and minimize filing burdens on licensees. In lieu of the 
regulatory compliance demonstration proposed in the WRS Reform NPRM, 
the Commission concludes that it can perform its duties and further its 
public interest goals effectively by requiring a renewal applicant to 
certify that it has substantially complied with all applicable FCC 
rules, policies, and the Act. If a particular renewal applicant is 
unable to make the substantial

[[Page 41537]]

compliance certification, it will need to provide an explanation of the 
circumstances preventing such a certification and why renewal of the 
subject license should still be granted.
    37. Elimination of Comparative Renewal Rules for WRS. As proposed 
in the WRS Reform NPRM and consistent with the action the Commission 
took in the WRS Reform First Report and Order in this proceeding 
adopted in tandem with the Cellular Reform Second Report and Order on 
March 23, 2017 (WT Docket No. 12-40), and in several other proceedings 
over the last decade, the Commission prohibits the filing of competing 
applications for all WRS and eliminates the remaining comparative 
renewal procedures and requirements across various rule parts.
    38. The WRS Reform NPRM proposed to prohibit the filing of 
competing renewal applications for all WRS as part of its proposed 
uniform WRS renewal process. The majority of commenters support the 
Commission's proposal to eliminate service-specific rules regarding the 
filing of competing applications and the use of comparative hearings to 
resolve them. A number of commenters maintain that the comparative 
renewal process is an outdated vestige of licensing rules predating the 
Commission's current reliance on auctions in many services.
    39. The Commission deletes the remaining service-specific 
comparative renewal rules and prohibits the filing of competing renewal 
applications for all WRS. This approach is consistent with the 
Commission's determinations in many other commercial wireless service 
proceedings over the last ten years--including those for the AWS-3 and 
AWS-4 Bands, the H Block, the 600 MHz Band, and the 700 MHz Commercial 
Services Band--and with the elimination of comparative renewal rules 
applicable to the Cellular Service. The same logic that the Commission 
used in exempting those bands from comparative renewal applications 
likewise applies to the remaining WRS bands. The Commission previously 
found, and commenters agree here, that the public interest is not 
served by the filing of time-consuming and costly competing 
applications, and a prohibition on competing applications will 
``protect[] the public interest without creating incentives for 
speculators to file `strike' applications.''
    40. The few commenters that support retention of the comparative 
renewal application rules argue that, without the ability to file 
competing applications, there is no way to discover disqualifying facts 
about incumbent licensees. The renewal requirements the Commission 
adopts today, however, will provide it with ample information to 
determine whether a particular license renewal is in the public 
interest. Some commenters also argue that competing applications are 
rare, but this only strengthens the rationale to eliminate the outdated 
rules. The Commission finds that the best course is to remove the 
comparative renewal rules and harmonize the approach across spectrum 
bands--many of which, as discussed above, already prohibit the filing 
of competing applications. In the event that an entity lacks standing 
to file a petition to deny a WRS license renewal application, it may 
still bring relevant facts to the attention of the Commission by means 
of an informal filing.
    41. If a license is not renewed, the associated spectrum will be 
returned to the Commission as discussed below, allowing parties that 
may have been inclined to file a competing application to participate 
in the auction of spectrum recovered from geographic licensees or apply 
for spectrum recovered from a Cellular or site-based licensee.
    42. Return of Spectrum to Commission if Renewal Application Is 
Denied. Consistent with the Commission's proposals in the WRS Reform 
NPRM, the Commission concludes that, if a WRS licensee cannot meet the 
renewal standard and its license cannot be renewed, its licensed 
spectrum will be returned automatically to the Commission. For site-
based licenses, the Commission will continue to apply the policy of 
having spectrum revert to a geographic area licensee, if applicable, if 
an underlying site-based authorization is not renewed.
    43. One overarching goal in this proceeding is to ensure that 
valued spectrum resources are rapidly put to their highest and best 
use. A second goal in this proceeding is to provide licensees with 
certainty and clarity regarding the rules that apply to them and the 
consequences for failing to meet those rules. The Commission's existing 
spectrum reversion rule employed today serves these dual goals. If a 
licensee cannot meet the renewal standard (via safe harbor or renewal 
showing) or it has permanently discontinued service, or its regulatory 
compliance certification is insufficient, its renewal application 
cannot be granted, and its licensed spectrum will return automatically 
to the Commission.
    44. Wireless Radio Services Excluded from Rulemaking. The 
Commission concludes that certain Wireless Radio Services should be 
excluded from the new renewal requirements. Specifically, the 
Commission will not apply the revised renewal paradigm to Wireless 
Radio Services licenses that have no construction obligations, 
including services where operations are licensed by rule (and thus 
there is no individual ``license'' to renew) or to Wireless Radio 
Services that can be considered to involve a ``personal'' license. 
These services are listed in Appendix I of the Order.

B. Permanent Discontinuance of Operations for Wireless Radio Services

    45. All WRS licensees are currently subject to the Part 1 rule 
governing permanent discontinuance, which provides that an 
authorization automatically terminates, without specific Commission 
action, if service is ``permanently discontinued.'' To promote service 
continuity, the Commission replaces disparate service-specific rules 
dealing with permanent discontinuance with a standardized rule for all 
WRS licensees. This rule will work in concert with construction and 
renewal obligations to ensure that licensees provide service in a 
timely manner, continue to provide service over the term of the 
license, and do not discontinue service for such an extended period of 
time that it should be deemed permanent.
    46. Current service-specific rules do not clearly and consistently 
define permanent discontinuance resulting in license termination, with 
a few services defining the term and many services completely lacking 
any definition. Thus, after meeting any service-specific construction 
and renewal requirements, some licensees in a service whose rules 
provide no definition of ``permanent'' discontinuance might conclude 
that they are permitted to discontinue service for long periods of 
time, and that such suspension of service would not trigger automatic 
license termination. In contrast, other licensees/competitors in a 
service whose rules define ``permanent'' discontinuance as specific 
amount of time during which operations were suspended (e.g., 90 days) 
would be subject to automatic license termination if they discontinued 
service to subscribers for that specified length of time. As the 
Commission noted in the WRS Reform NPRM, the public interest is not 
served by such marked regulatory disparities. The Commission 
accordingly proposed to adopt a uniform discontinuance of service rule 
for Parts 22, 24, 27, 80, 90, 95, and 101 Wireless Radio Services. The 
Commission finds that the adoption of a uniform regulatory framework 
governing the permanent discontinuance of operations for Wireless Radio 
Services will serve the public interest by: (1) Affording

[[Page 41538]]

similarly situated licensees and like services comparable regulatory 
treatment; (2) providing licensees and other interested parties clarity 
and certainty to facilitate business and network planning; and (3) 
ensuring that valuable spectrum is not underutilized. The rules the 
Commission adopts today strike the appropriate balance between 
providing licensees with operational flexibility and ensuring spectrum 
is not warehoused and does not lie fallow.
    47. Most but not all commenters support a uniform regulatory 
framework governing permanent discontinuance. Commenters disagree, 
however, on the appropriate discontinuance period to be applied to the 
various Wireless Radio Services, with some commenters supporting the 
Commission's proposed time periods while other commenters seek a 365-
day discontinuance period for all WRS licensees.
    48. Commenters are generally supportive of the Commission's 
proposal to apply the permanent discontinuance rule commencing on the 
date a licensee makes its initial construction showing or notification. 
Some commenters, however, ask that the Commission commence the 
permanent discontinuance period on the date of a licensee's 
construction deadline, while Sprint suggests that the Commission use a 
licensee's final construction deadline date.
    49. Section 101.305 of the rules states that common carrier 
licensees in certain services must notify the Commission of involuntary 
discontinuance, reduction, or impairment of service within 48 hours, 
and that voluntary discontinuance by a common carrier licensee in the 
identified services must occur only with prior Commission approval, 
under the procedures of part 63 of the Commission's rules. AT&T asks 
that the Commission take this opportunity to delete Sec.  101.305, 
arguing that it is both obsolete and duplicative of other rules, 
specifically Sec.  101.65 and that the rule's concern for protecting 
``communities'' is misplaced.
    50. After reviewing the extensive record in this proceeding, the 
Commission finds that the public interest will be best served by 
adopting a uniform regulatory framework governing service continuity. 
The Commission therefore adopts new Sec.  1.953 as it appears in 
Appendix A of the Order and deletes multiple rule sections governing 
permanent discontinuance in specific Wireless Radio Services. As 
recognized by the Commission in four other proceedings and by 
commenters in this proceeding, the approach the Commission adopts 
strikes an appropriate balance between affording licensees operational 
flexibility and ensuring that licensed spectrum is efficiently 
utilized. The Commission disagrees with those commenters that oppose 
the adoption of any permanent discontinuance rules. Allowing licensees 
unfettered discretion to determine how long scarce spectrum resources 
lie fallow after meeting relevant construction requirements would be 
inconsistent with the intent of those requirements and would directly 
contradict the Commission's statutory obligation to ``prevent 
stockpiling or warehousing of spectrum by licensees or permittees.''
    51. The Commission replaces the existing hodgepodge of 
discontinuance rules with a unified regulatory framework that ensures 
regulatory parity across services and license types and applies the 
rules on a per-license basis. Under the new rules for all 
geographically licensed radio services, permanent discontinuance of 
service for a given license will be defined as 180 consecutive days 
during which a licensee does not operate or, in the case of WRS 
licensees providing service to customers, does not provide service to 
at least one subscriber that is not affiliated with, controlled by, or 
related to the providing carrier. The Commission adopted an identical 
framework for AWS-4, H Block, AWS-3, and 600 MHz, which are all 
licensed on a geographic basis. In addition, for all radio services 
licensed by site, permanent discontinuance of service for a given 
license will be defined as 365 consecutive days during which a licensee 
does not operate or, in the case of WRS licensees providing service to 
customers, does not provide service to at least one subscriber that is 
not affiliated with, controlled by, or related to the providing 
carrier. A licensee's authorization will automatically terminate, 
without specific Commission action, if it permanently discontinues 
service.
    52. The rules distinguish between wireless providers providing 
service to subscribers and private licensee operation. In accordance 
with the Commission's proposal, for wireless providers, the Commission 
defines ``permanently discontinued'' as a period of 180 or 365 
consecutive days (for geographic and site-based licenses, respectively) 
during which the licensee does not provide service to at least one 
subscriber that is not affiliated with, controlled by, or related to, 
the provider. The Commission adopts a different approach for wireless 
licensees that use their licenses for private, internal communications, 
however, because such licensees generally do not provide service to 
unaffiliated subscribers. For such private, internal communications, 
the Commission defines ``permanent discontinuance'' as a period of 180 
or 365 consecutive days (for geographic and site-based licenses 
respectively) during which the licensee does not operate.
    53. The Commission concludes that different rules for geographic 
versus site-based licenses are warranted by their differing operational 
characteristics. Under a geographic license, a licensee constructs and 
operates its entire network in the market under the umbrella of its 
geographic license. As MetroPCS explains, wireless carriers constantly 
discontinue individual sites or channels as they reconfigure their 
networks to increase and adjust capacity. The Commission's goal in this 
proceeding is not to hamper a licensee's normal network design and 
reconfiguration processes. Licensees should continue to have the 
necessary flexibility to add or remove network facilities consistent 
with their business strategies and network planning processes. Thus, 
for geographic licensees, the period of discontinuance will not start 
for a given license until all network facilities operated under that 
license within the licensed area are discontinued.
    54. By contrast, site-based licensees do not have the same 
flexibility as geographic licensees to decommission individual 
facilities. Site-based licensees are authorized to transmit from a 
particular location or over a particular path and have little 
flexibility to alter these parameters; ceasing operation on a frequency 
or band constitutes a total cessation of all service or operation under 
the site-based license and, unless otherwise provided, would therefore 
start the clock for measuring the length of discontinued service/
operations on that licensed frequency/band at that location/path. Thus, 
to provide site-based licensees with the necessary flexibility to 
repair, modify, or upgrade their sites without fear of triggering a 
discontinuance period that could lead to the automatic termination of 
their license, the Commission finds that site-based licensees should be 
afforded a 365-day discontinuance period.
    55. The Commission does not find that geographic licensees need a 
365-day discontinuance period to adequately conduct technology upgrades 
and to avoid unfairly penalizing licensees that operate in remote or 
highly seasonal areas of the country that may be uninhabited for more 
than half the year. Given the flexibility geographic licensees have to

[[Page 41539]]

turn off individual facilities in their licensed area so long as at 
least one facility continues to operate or continues to serve at least 
one non-affiliated subscriber, the Commission finds that 180 days 
provides licensees with ample time to effectuate network modifications 
without triggering a discontinuance period. Adoption of a 180-day 
discontinuance period substantially increases the amount of time 
licensees can discontinue operations in some services. However, the 
Commission decreases the discontinuance period from one year to 180 
days in certain services, for example, certain Part 101 geographic 
licenses and 220-222 MHz geographic licenses (listed in Appendix F of 
the Order). Given the operational flexibility afforded geographic area 
licensees discussed above, the Commission concludes that this reduction 
will not create undue burdens on such licensees. Moreover, in the event 
additional time is needed, as discussed below, the rules will provide 
for an automatic 30-day extension or licensees can file for a waiver 
under Sec.  1.925 of the Commission's rules if additional time is 
warranted.
    56. The Commission agrees with commenters who propose that the 
discontinuance rule should begin to apply on the date a licensee must 
meet its first performance requirement benchmark, i.e., the 
construction deadline. Using the construction deadline, versus the date 
a licensee actually makes its construction notification, will ``avoid 
unduly punishing early adopters who are experimenting with certain 
business models or technologies, and who later deploy a different 
technology.'' If a licensee files its notification prior to the 
required construction deadline, the licensee should have the 
flexibility to alter its network as it sees fit, including turning down 
the entire system to accommodate changes in business plans or network 
design. If the Commission were to apply the rule immediately upon the 
filing of a licensee's construction showing or notification, it would 
create a disincentive for licensees to deploy their networks prior to 
their construction deadline. Such a result would be contrary to the 
Commission's goal of rapid spectrum deployment.
    57. In most cases, the first performance requirement benchmark is 
the interim or final construction deadline for geographic licenses, or 
the 12-month construction deadline for site-based licenses. In a few 
cases, licensees have partitioned and/or disaggregated their licenses 
under current rules, and one or more of the resulting licenses does not 
have a construction deadline. Under the new renewal standard these 
licenses must be operating by the end of the next full renewal term 
after their current license term to warrant renewal. As such, the 
discontinuance rules will apply to these partitioned/disaggregated 
licenses at that date. This approach provides consistent treatment in 
that licensees need only be concerned about permanent discontinuance 
after they are required to be operating (whether at their next 
construction deadline or renewal). The Commission adopted the same 
approach for AWS-4, H Block, AWS-3, and 600 MHz.
    58. In services where the Commission's rules currently contain no 
definition of permanent discontinuance, some licensees may have met 
their interim construction deadline, but have yet to reach their final 
construction deadline and may have discontinued operations as part of a 
business strategy or network plan. Absent a definition of permanent 
discontinuance, these licensees might have concluded that they could 
discontinue service for a long period without fear of automatic license 
termination. While all covered WRS licensees must comply with the 
permanent discontinuance rules going forward, it is equitable to 
provide certain existing licensees with additional time to come into 
compliance with the rules, if necessary. Thus, in all services that do 
not currently have an explicit definition of permanent discontinuance, 
(e.g., Part 24 Personal Communications Services, certain Part 27 
Miscellaneous Wireless Communications Services, Part 80 Safety and 
Special Radio Services, and Part 95 218-219 MHz Service) licensees will 
be given until January 1, 2019 to come into compliance with the rules 
adopted today regarding permanent discontinuance. If a licensee in 
these services is not providing service or is not operational on 
January 1, 2019, the discontinuance period would start on that date. 
After that date, a WRS licensee's authorization will automatically 
terminate, without specific Commission action, if service is 
permanently discontinued as defined under the newly adopted rules.
    59. The Commission declines to adopt Sprint's request to apply the 
permanent discontinuance rules only after a licensee's final 
construction date. The permanent discontinuance rules are designed to 
ensure that once a licensee is required to begin operations or provide 
service to the public by, e.g., an interim construction date, it 
continues to do so thereafter without substantial breaks in operation 
or service. If the Commission generally does not apply the permanent 
discontinuance rules until after a licensee's final construction date, 
a licensee would be permitted to initiate service at its interim date 
and then shut down all operations until the final construction 
deadline. This result is contrary to the Commission's goal of promoting 
robust spectrum use. However, for some services a failure to meet an 
interim construction date results in acceleration of the final 
construction date and, in some cases, the license expiration date. For 
these services, if a licensee fails to meet the interim construction 
date, the discontinuance rule will apply after the licensee's 
accelerated final construction date.
    60. The Commission exclude EBS from application of the new 
permanent discontinuance rule because this service presents unique 
issues that are under consideration in a separate proceeding. The 
Commission finds that it should consider EBS permanent discontinuance 
policies in the context of the comprehensive EBS rulemaking. For the 
reasons stated above in the discussion of the renewal policy rules, the 
Commission finds that BRS licenses and the Motorola-held partitioned 
and/or disaggregated Part 80 VHF Public Coast licenses should be 
subject to the rules and policies adopted herein regarding permanent 
discontinuance.
    61. Section 101.305 contains a number of requirements related to 
discontinuance, reduction, or impairment of services for some or all 
Part 101 services. The bulk of these provisions relate to involuntary 
and voluntary discontinuance, reduction, or impairment of public 
communications services and required filings to be made with the 
Commission. In particular, Sec.  101.305(b) requires that covered 
licensees subject to Title II of the Act must obtain prior approval 
from the Commission pursuant to the procedures set forth in part 63 of 
the Commission's rules before they may voluntarily discontinue, reduce, 
or impair public communications services to a community or part of a 
community. Because Sec.  101.305 implicates the provision of service 
pursuant to Title II of the Act and given the limited record addressing 
this rule, the Commission makes no changes to this rule section at this 
time.
    62. Notification of permanent discontinuance. The Commission adopts 
the proposed filing requirement that a licensee that permanently 
discontinues service must notify the Commission of the discontinuance 
within 10 days by filing FCC Form 601 or 605 requesting license 
cancellation. Such a self-reporting requirement will

[[Page 41540]]

facilitate timely and accurate recordkeeping of the Commission license 
and spectrum inventory. However, even if a licensee fails to file the 
required form requesting license cancellation, an authorization will 
automatically terminate, without specific Commission action, if service 
is permanently discontinued as defined by the new rules. The Commission 
disagrees with the two commenters who ask that the notification period 
be extended to 30 days. Neither commenter advances a compelling basis 
for extending the notification period and the proposed 10-day period 
will ensure that the Commission's records are updated on a timely 
basis.
    63. Extension requests. In addition, the Commission adopts the 
proposed extension request process under which a request for a longer 
discontinuance period may be filed for good cause, subject to the 
requirement that it be filed at least 30 days before the end of the 
discontinuance period. Under this process, the filing of a request 
would automatically extend the discontinuance period a minimum of the 
later of an additional 30 days or the date upon which the Wireless 
Telecommunications Bureau (Bureau) acts on the request. Commenters 
support the proposed automatic process for extension requests. Such an 
express process provides licensees with the flexibility to request a 
limited period of additional time for discontinuance of operations as 
necessitated by the licensee's business and operational needs and the 
certainty that they will receive a minimum of 30 additional days to 
resume service.
    64. The Commission declines, however, to adopt CCA's proposal for 
an automatic six-month extension period or case-by-case review. An 
automatic extension of the permissible discontinuance period of six 
months runs contrary to the goals of timely and efficient use of the 
nation's scare spectrum resources. Although unique circumstances may 
arise that necessitate a period of discontinuance beyond what is 
automatically permitted under the new rules, these circumstances can 
adequately be addressed by the existing waiver processes.
    65. Roaming. Several commenters ask that the Commission clarify how 
its permanent discontinuance rules apply to licensees that serve 
roamers. The Commission concludes that, for purposes of the permanent 
discontinuance rule, the term ``service'' includes service provided 
exclusively or incidentally to roamers even though such roamers are not 
subscribers of the licensee providing roaming service. Including 
roaming within the definition of service serves the underlying goal of 
the Commission's rules to ensure that licensees are actively using 
their spectrum--be it to provide service to subscribers or roamers--and 
not allowing it to lie fallow. The Commission clarifies, however, that 
a WRS licensee must actually be providing service to a roamer and not 
merely have the ability to provide service to roamers.
    66. Channel keepers. The Commission adopts its proposed rule that 
operation of so-called channel keepers--devices that transmit test 
signals, tones, and/or color bars, for example--will not constitute 
operation or service for the purposes of the permanent discontinuance 
rule. As the Commission explained previously, ``it was clearly 
unreasonable . . . to believe that the periodic broadcasting of signals 
that nobody received constituted `service' within the meaning of the 
rule. Such an interpretation is unreasonable; in order to provide a 
service a provider would, at a minimum, need a customer or other person 
to serve.'' The Commission thus adopts the rule regarding channel 
keepers as proposed.
    67. Verizon asks the Commission to expand the definition of 
operation to include facilities that are ``available'' to carry 
customer traffic but are in ``standby'' mode and only used on an ``as-
needed basis depending on capacity demands.'' Verizon argues that these 
systems are needed to allow licensees to maximize efficiency of their 
spectrum resources and network investment and maintain optimal 
performance levels while providing seamless service to customers across 
multiple licenses in the same market. The Commission declines to expand 
its definition of operation as requested by Verizon. As the Commission 
explained previously, at a minimum, provision of service requires a 
customer or other person to serve. That a network is capable of service 
in ``standby mode'' or on an ``as-needed basis'' without providing 
actual service to a customer or other person is insufficient to 
constitute service for purposes of the Commission's permanent 
discontinuance rules. Moreover, the Commission does not license 
spectrum on a network basis; rather, it evaluates operational 
obligations on a license-by-license basis, and thus licensees must 
maintain continuity of service or operations on a license-by-license 
basis.

C. Geographic Partitioning and Spectrum Disaggregation Rules and 
Policies

    68. In the WRS Reform NPRM, the Commission proposed a new rule, 
Sec.  1.950, to standardize and clarify its partitioning and 
disaggregation rules across services in which such activities are 
permitted. As part of this proposal, the Commission contemplated 
establishing consistent performance obligations (i.e., construction and 
operation) for spectrum licenses that have been divided by geographic 
partitioning or spectrum disaggregation arrangements. Specifically, the 
Commission proposed that each party to such an arrangement would be 
individually required to meet any service-specific performance 
requirements.
    69. At present, there are a wide variety of Wireless Radio Services 
under the Commission's authority that are subject to equally varied 
construction and performance obligations. The Commission's current 
partitioning rules provide licensees several options to meet their 
construction obligations: (1) Independent Construction--the parties may 
independently elect to satisfy the construction requirements for their 
respective partitioned license areas and failure to perform subjects a 
licensee in this context to forfeiture of its partitioned license; (2) 
Collective Construction--the parties may collectively share 
responsibility for meeting the construction requirement for the entire 
geographic area and if the parties collectively fail, then both will be 
subject to a range of penalties, including possible license forfeiture; 
or (3) Partitioner-only Construction--the partitioner may satisfy the 
construction requirement for the entire pre-partitioned geographic 
area. Many services allow this third option, but the repercussions for 
failure to perform vary significantly. In some instances, partitionees 
must still satisfy a substantial service requirement for the 
partitioned area at renewal. In others, partitionees can argue that 
they are not obligated to provide service to obtain license renewal 
since only the non-performing partitioner is subject to forfeiture of 
its license at renewal.
    70. Licensees also currently have multiple options under the 
Commission's disaggregation rules to meet applicable construction 
obligations: (1) One-party Construction--parties can assign 
responsibility to either the disaggregator or the disaggregatee, and 
construction by that party is deemed sufficient for both. Generally, if 
the designated party

[[Page 41541]]

fails to perform, only its license is subject to forfeiture at renewal. 
(2) Shared Construction Responsibility--parties may share 
responsibility for meeting the construction requirements. Depending on 
the service, failure to perform by either party could result in 
forfeiture of both licenses. By contrast, some service rules allow 
parties to a disaggregation to satisfy the construction requirement in 
the aggregate rather than individually.
    71. A majority of the commenters that addressed the partitioning 
and disaggregation construction requirements in the WRS Reform NPRM 
disagree with the Commission's proposal to require that each party to 
such arrangements independently satisfy construction obligations. They 
object largely on the basis that the current rules already promote 
efficient spectrum use and changing them is unnecessary, or worse, 
harmful. They contend, among other things, that the new rules will curb 
interest in secondary market opportunities, particularly in rural 
areas, and will disrupt existing private contractual relationships.
    72. The Commission's experience with partitioning and 
disaggregation indicates that parties can, and sometimes do, manipulate 
the current requirements in ways that result in spectrum in some 
services lying fallow for long periods of time, contrary to the 
Commission's stated goal of maximizing efficient spectrum use. For 
instance, under the current rules, parties have been free to 
disaggregate a small sliver of a spectrum license over the entire 
geographic licensed area and assign the entire construction requirement 
to that particular license. In that circumstance, only that small 
sliver of spectrum has been subject to license termination or 
forfeiture, while the bulk of the license has not been subject to any 
construction requirement. The Commission finds that none of the 
comments effectively addresses the central rationale for proposing to 
modify the partitioning and disaggregation performance requirements, 
i.e., preventing spectrum warehousing. The Commission therefore amends 
the partitioning and disaggregation rules to prevent spectrum 
warehousing.
    73. In lieu of requiring each party to a partitioning or 
disaggregation arrangement to certify that it will independently 
satisfy service-specific construction and/or performance requirements, 
the Commission will afford such parties the additional option of 
sharing service-specific performance requirements.\6\ Further, to 
ensure uniformity and clarity, the Commission adopts Sec.  1.950, 
largely as proposed, and Sec.  1.950(g), as revised, to replace 
separate partitioning and disaggregation construction and performance 
rules for each service in various rule parts. The Commission concludes 
that these changes will provide WRS licensees with greater flexibility 
to configure their licenses according to their operational needs, while 
still affording important safeguards against spectrum warehousing.
---------------------------------------------------------------------------

    \6\ Specifically, in Sec.  1.950(g), as revised herein, the 
Commission provides the parties to a partitioning and/or 
disaggregation arrangement with two options for satisfying service-
specific performance requirements (i.e., construction and operation 
requirements). Under the first option, each party may individually 
satisfy any service-specific requirements and, upon failure, must 
individually face any service-specific performance penalties. Under 
the second option, both parties may agree to share responsibility 
for any service-specific requirements. Upon failure to meet their 
shared service-specific performance requirements, both parties will 
be subject to any service-specific penalties.
---------------------------------------------------------------------------

    74. The Commission agrees with Verizon that imposing an independent 
construction requirement on both parties to a partitioning or 
disaggregation arrangement, as proposed in draft Sec.  1.950(g) in the 
WRS Reform NPRM, might, under certain circumstances, unnecessarily 
impose additional construction requirements on parties to partitioning 
and disaggregation arrangements that would not have existed had the 
license not been partitioned or disaggregated. To address this 
potential issue, the Commission revises Sec.  1.950(g) to allow 
participants to share the construction requirement, which ensures that 
no two parties to a partitioning or disaggregation arrangement will be 
required to build out more than 100 percent of the requirement for any 
particular geographic area or spectrum block. In addition, parties to 
partitioning and disaggregation arrangements are not required to 
continue construction in cases where the original licensee has already 
satisfied the requirement for the license term. However, to the extent 
that Sec.  1.950(g), as revised, requires that partitionees and 
disaggregatees comply with interim and final construction benchmarks in 
addition to satisfying the renewal requirements the Commission adopts 
in this order, the Commission's interest in preventing spectrum 
warehousing that is permitted under current rules outweighs the 
potential added burden, if any, on these third-party licensees.
    75. The Commission finds that the new rule adequately addresses 
commenters' arguments that proposed Sec.  1.950(g) would deter 
secondary market activity, especially with respect to small, rural 
licensees for whom buildout requirements may be prohibitively costly. 
The Commission also finds that its rule adequately addresses Blooston's 
arguments underlying its recommendation that the Commission exempt 
rural areas from the rule. The revised rule allows parties to 
partitioning and disaggregation arrangements to share service-specific 
construction requirements. The Commission concludes that the additional 
flexibility of the revised rule will continue to enable service 
providers to configure geographic area and spectrum block licenses to 
suit their unique operational needs, which includes using partitioning 
and disaggregation to open up licensing opportunities to rural 
carriers.
    76. The Commission declines to retain ``partitioner only'' 
construction rules (wherein a partitioner can certify that it has met 
or will meet the construction requirement for the entire pre-
partitioned area) to encourage carriers to take risks in rural markets. 
This proposal would appear to allow a partitionee in certain services 
to hold a license for the partitioned area without deploying facilities 
on the spectrum for a significant period of time, even if the licensee 
must be able to certify that it is providing service at renewal, or 
otherwise make a showing to justify license renewal. The Commission 
concludes that the better way to promote service to rural markets is to 
ensure that all license holders--at least during the initial license 
term, and in circumstances where the original licensee has not 
previously satisfied the construction requirement for the entire 
geographic area or spectrum block--have, directly or indirectly, an 
obligation to construct and operate facilities on the spectrum.
    77. The Commission declines to adopt CTIA's proposal that the 
Commission should exempt a licensee's wholly owned subsidiaries or 
commonly controlled affiliates when they partner with the licensee to 
divide the license. The Commission's experience has shown that this 
type of intra-corporate family partitioning and disaggregation has 
proven particularly susceptible to manipulation for spectrum 
warehousing purposes simply because the parties to the division are 
commonly controlled. Adoption of CTIA's proposal risks undermining 
rather than advancing the Commission's objective of eliminating 
spectrum warehousing. Moreover, the addition of the new option to 
permit shared construction responsibility by a

[[Page 41542]]

partitioner/partitionee or a disaggregator/disaggregatee should largely 
address this concern.
    78. The Commission does not adopt the suggestions raised by 
MetroPCS and Verizon that the Commission exempt Broadband PCS from the 
proposed rule based on the argument that the substantial service 
requirement at renewal discourages parties to a partitioning 
arrangement from warehousing spectrum in the manner the Commission 
seeks to preclude. The Commission concludes that these licensees will 
be no worse off under a regulatory framework that holds all licensees 
to comparable requirements. Many services still allow parties to a 
partitioning or disaggregation arrangement to assign the performance 
requirement to one of the parties and thereby allow the other to delay 
or avoid construction in that party's portion of the license (whether 
geography or spectrum) if they so choose. This problem exists in 
numerous services, even if some service rules may discourage so-called 
free riders. By this Order, the Commission seeks to consolidate the 
services under a single set of rules and proscribe spectrum warehousing 
by all licensees in the covered services, not just the few who hold 
spectrum subject to service rules that more effectively prevent such 
warehousing.
    79. The Commission also declines to adopt CTIA's proposal to 
prohibit parties from assuming construction and performance obligations 
for an entire license area or spectrum block unless they also hold 
spectrum covering a majority of that same geographic area or spectrum 
block. CTIA does not provide evidence demonstrating why this approach 
would be more effective at preventing spectrum warehousing than the 
consistent approach envisioned by the partitioning and disaggregation 
rules adopted today, nor does it acknowledge or address the potential 
administrative burdens that would be placed on applicants and on 
Commission staff in addressing such arrangements. The Commission 
believes that adoption of CTIA's proposal would provide greater 
uncertainty in the spectrum marketplace and would not consistently and 
successfully prevent spectrum warehousing.
    80. The Commission also declines to exempt existing partitioning 
and disaggregation arrangements from application of the requirements of 
Sec.  1.950(g) as adopted today, and apply the rule only prospectively 
and only to future partitioning and disaggregation arrangements. By 
adopting Sec.  1.950(g) as revised, the Commission intends to prevent 
spectrum warehousing and ensure that future transactions facilitate the 
availability of spectrum in the marketplace for licensees who are most 
highly motivated to use it. By this action, the Commission seeks to 
resolve loopholes in the current partitioning and disaggregation rules 
that could be and have been manipulated to avoid the very construction 
and substantial service obligations that promote efficient spectrum 
use. However, the Commission agrees that its rules should not be 
applied retroactively to disrupt transactions that have already been 
negotiated based on the pre-existing rules and submitted to the 
Commission for approval. Specifically, Sec.  1.950(g) will be applied 
to partitioning and disaggregation arrangements reflected in 
applications filed on or after the effective date of the new rule, and 
not to any arrangements reflected in an already granted application or 
in an application filed before the effective date of new Sec.  
1.950(g).
    81. The Commission makes no changes in response to AT&T's argument 
that new entrants will be discouraged from acquiring spectrum through 
partitioning or disaggregation when it is late in the original license 
term, and there is little time to fulfill the construction obligation. 
The Commission concludes that this concern is related not to 
partitioning and disaggregation rules, but to the current build out 
rules, which provide that the performance requirements associated with 
a license are not reduced or extended as a result of any secondary 
market transaction, including one near the end of a license term. The 
rule modifications do not alter those obligations.
    82. Finally, the Commission does not address the suggestion by 
Sprint and AT&T that licensees that have acquired previously 
partitioned and/or disaggregated licenses be allowed, as a matter of 
processing, to consolidate the subdivided parts into the original 
license configuration. The Commission finds this proposal to be beyond 
the scope of this proceeding, which is narrowly focused on 
standardizing and clarifying the Commission's partitioning and 
disaggregation rules across services. The question of whether, and how, 
a partitioned or disaggregated license can be reconstituted as a matter 
or processing can be addressed by Commission staff under current rules 
and licensing systems.
    83. Commenting parties in this proceeding that addressed proposed 
Sec.  1.950 focused solely on proposed Sec.  1.950(g). Accordingly, 
based on the record in this proceeding, the Commission adopt Sec.  
1.950 largely as proposed in the WRS Reform NPRM, with the exception of 
Sec.  1.950(g). The Commission further concludes that adopting new 
Sec.  1.950(g), as revised herein, will most effectively balance its 
competing obligations to: (1) remove potential barriers to entry by 
returning heretofore fallow spectrum to the marketplace, and thereby 
increase competition; (2) encourage parties to use spectrum more 
efficiently; and (3) speed service to unserved and underserved areas.

D. Freeze on the Filing of Competing Renewal Applications and 
Resolution of Previously Pending Competing Renewal Applications

    84. In the WRS Reform Order, the Commission imposed a freeze on the 
filing of competing renewal applications and held in abeyance the 
already-filed competing renewal applications until the conclusion of 
this proceeding. The Commission stated that, if it were to adopt the 
rules proposed in the WRS Reform NPRM, it would ``dismiss all pending 
mutually exclusive applications and related correspondence filed with 
the Commission regarding those applications.''
    85. At the time that the WRS Reform Order was adopted, the 
Commission had before it a total of 151 renewal applications in three 
different service bands, and 178 applications competing with those 
renewal applications. Most of those competing applications--175 of 
178--were filed in the 2.3 GHz Band against WCS licensees. These 
competing applications were dismissed by the Commission after the 
relevant parties reached settlement agreements. Of the remaining three 
competing applications, two were against Cellular licensees' renewal 
applications and one was against a Broadband PCS licensee's renewal 
application. The two Cellular competing applications have since been 
dismissed or resolved. The PCS competing application was withdrawn 
after the applicant obtained the underlying license at issue via the 
license assignment process.
    86. Because there are no remaining pending competing renewal 
applications, there is no further action needed on the Commission's 
part to dismiss such applications.

E. Transition From Interim Renewal Application Procedures

    87. The Commission directed incumbent licensees to continue to file 
timely renewal applications as required by applicable Commission rules 
during the pendency of this rulemaking. The Commission further directed 
that

[[Page 41543]]

renewal applications routinely should continue to be placed on a Bureau 
accepted for filing public notice, and that interested parties could 
continue to file petitions to deny consistent with the rules. In order 
to reduce uncertainty that might be caused by long-pending renewal 
applications, the Commission directed the Bureau to routinely grant 
renewal applications during the pendency of this proceeding, 
conditioned on the outcome of this rulemaking.
    88. Notwithstanding the Commission's statement in the WRS Reform 
Order that interested parties may file petitions to deny consistent 
with the requirements of its rules, NTCH, Inc., now asks that the 
Commission provide an opportunity for a potential applicant to 
challenge a renewal applicant's basic qualifications at the close of 
this docket. NTCH asserts that providing this opportunity to file 
petitions to deny against conditionally granted renewal applications is 
necessary to avoid ``permanently abrogat[ing] the legal rights of 
parties interested in challenging the grant of a renewal application.'' 
The Commission denies NTCH's request that it open a window for the 
filing of petitions to deny against licensees whose renewal 
applications have been conditionally granted. The opportunity to file 
petitions to deny against renewal applications has been present 
throughout the pendency of this proceeding, and NTCH has not offered a 
persuasive legal or equitable argument in support of having a second 
shot at these renewal applications. The Commission accordingly declines 
to open a window for the filing of petitions to deny against renewal 
applications that have been conditionally granted.
    89. Petitions for reconsideration of the actions taken by the WRS 
Reform Order were filed by: (1) Atlantic Tele-Network, Inc., in 
connection with its wholly owned indirect subsidiary's, Tisdale 
Telephone Company, LLC, competing Cellular application with the 
Cellular renewal application filed by Kankakee Cellular L.L.C.; (2) 
CTIA, AT&T, Cricket, Rural Cellular Association, Sprint, T-Mobile, US 
Cellular, and Verizon Wireless; (3) Green Flag Wireless, LLC, CWC 
Licensing Holding, Inc., James McCotter, and NTCH-CA, Inc.; and (4) 
Wireless Communications Association International, Inc. (WCAI).
    90. The Atlantic Tele-Network, Inc. petition has been mooted by the 
fact that Kankakee withdrew its renewal application for a Cellular 
license authorization in the Kankakee, Illinois market, and Tisdale was 
granted a Cellular license for that market. The Commission previously 
approved the withdrawal of the petition for reconsideration filed by 
Green Flag Wireless, LLC, CWC License Holding, Inc., James McCotter, 
and NTCH-CA, Inc., along with another petition for reconsideration 
filed by the same parties on October 22, 2010, pursuant to a settlement 
agreement. The WCAI petition for partial reconsideration was addressed 
by the WRS Reform Clarification Public Notice, (WT Docket No. 10-112) 
on March 18, 2011, issued by the Bureau to clarify the conditional 
grant of applications for renewal of license in the WRS Reform Order. 
Subsequent to the release of the WRS Reform Clarification Public 
Notice, CTIA, AT&T, Cricket, Rural Cellular Association, Sprint, T-
Mobile, US Cellular, and Verizon Wireless filed a motion to withdraw 
their petition for reconsideration. The Commission finds no reason to 
address the arguments in the CTIA Petition and accordingly will grant 
the request to withdraw the CTIA Petition.
    91. The Commission directs the Bureau to take the necessary steps 
to cease conditioning the grant of renewal applications on the outcome 
of this proceeding. In addition, the Commission directs the Bureau to 
take the necessary steps to remove the condition from already granted 
renewal applications or otherwise make clear on the face of such 
licenses that such condition is no longer valid.

II. Procedural Matters

A. Paperwork Reduction Act Analysis

    92. The Order contains modified information collection requirements 
subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-
13. It will be submitted to the Office of Management and Budget (OMB) 
for review under Sec.  3507(d) of the PRA. OMB, the general public, and 
other Federal agencies will be invited to comment on the modified 
information collection requirements contained in this proceeding. In 
addition, the Commission notes that pursuant to the Small Business 
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 
3506(c)(4), it previously sought specific comment on how it might 
further reduce the information collection burden for small business 
concerns with fewer than 25 employees.
    93. The Commission assessed the effects of the policies adopted in 
the Order with regard to information collection burdens on small 
business concerns, and found that these policies will benefit many 
companies with fewer than 25 employees because the revisions the 
Commission adopts should reduce filing burdens for all WRS licensees, 
whether large or small. Also, by ensuring, pursuant to the partitioning 
and disaggregation rules and the permanent discontinuance rules the 
Commission adopts today, that valuable spectrum will not lie fallow, 
these policies will provide small entities with more opportunities to 
gain access to valuable spectrum. In addition, the Commission has 
described impacts that might affect small businesses, which includes 
most businesses with fewer than 25 employees, in the Final Regulatory 
Flexibility Analysis (FRFA) in Appendix B of the Order.

B. Congressional Review Act

    94. The Commission will send a copy of this Order to Congress and 
the Government Accountability Office pursuant to the Congressional 
Review Act. In addition, the Commission will send a copy of the Order, 
including the FRFA, to the Chief Counsel for Advocacy of the SBA (5 
U.S.C. 603(a)).

C. Final Regulatory Flexibility Analysis

    95. The Regulatory Flexibility Act of 1980 (RFA) requires that an 
agency prepare a regulatory flexibility analysis for notice and comment 
rulemakings, unless the agency certifies that ``the rule will not, if 
promulgated, have a significant economic impact on a substantial number 
of small entities.'' Accordingly, the Commission has prepared a FRFA, 
set forth in Appendix B of the Order, concerning the possible impact of 
the rule changes.

D. Ex Parte Presentations

    96. This proceeding shall continue to be treated as ``permit-but-
disclose'' proceeding in accordance with the Commission's ex parte 
rules. Persons making ex parte presentations must file a copy of any 
written presentation or a memorandum summarizing any oral presentation 
within two business days after the presentation (unless a different 
deadline applicable to the Sunshine period applies). Persons making 
oral ex parte presentations are reminded that memoranda summarizing the 
presentation must (1) list all persons attending or otherwise 
participating in the meeting at which the ex parte presentation was 
made, and (2) summarize all data presented and arguments made during 
the presentation. If the presentation consisted in whole or in part of 
the presentation of data or arguments already reflected in the 
presenter's written comments, memoranda or other filings in the 
proceeding, the presenter may provide citations to such data or

[[Page 41544]]

arguments in his or her prior comments, memoranda, or other filings 
(specifying the relevant page and/or paragraph numbers where such data 
or arguments can be found) in lieu of summarizing them in the 
memorandum. Documents shown or given to Commission staff during ex 
parte meetings are deemed to be written ex parte presentations and must 
be filed consistent with rule 1.1206(b). In proceedings governed by 
rule 1.49(f) or for which the Commission has made available a method of 
electronic filing, written ex parte presentations and memoranda 
summarizing oral ex parte presentations, and all attachments thereto, 
must be filed through the Commission's Electronic Comment Filing System 
(ECFS) available for that proceeding, and must be filed in their native 
format (e.g., .doc, .xml, .ppt, searchable .pdf). Participants in this 
proceeding should familiarize themselves with the Commission's ex parte 
rules.
    97. People with Disabilities. To request materials in accessible 
formats for people with disabilities (braille, large print, electronic 
files, audio format), send an email to [email protected] or call the 
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).

III. Ordering Clauses

    98. Accordingly, it is ordered, pursuant to sections 1, 2, 4(i), 
4(j), 7, 301, 303, 307, 308, 309, 310, and 332 of the Communications 
Act of 1934, as amended, 47 U.S.C. 151, 152, 154(i), 154(j), 157, 301, 
303, 307, 308, 309, 310, 332, that this second report and order in WT 
Docket No. 10-112 is adopted.
    99. It is further ordered that parts 1, 22, 24, 27, 30, 74, 80, 90, 
95, and 101 of the Commission's rules, 47 CFR parts 1, 22, 24, 27, 30, 
74, 80, 90, 95, and 101, are amended, effective October 2, 2017 except 
as otherwise provided herein.
    100. It is further ordered that the amendments adopted in this 
second report and order, and to Sec. Sec.  1.949, 1.950, and 1.953, 
which contain new or modified information collection requirements that 
require review by the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act, will become effective after OMB review and 
approval, on the effective date specified in a notice that the 
Commission will have published in the Federal Register announcing such 
approval and effective date.
    101. It is further ordered that the amendments adopted in this 
second report and order, and to paragraphs (e), (q)(7), (r)(6), (s)(6), 
and (t)(6) of Sec.  27.14, will become effective after OMB review and 
approval of Sec.  1.949, on the effective date specified in a notice 
that the Commission will have published in the Federal Register 
announcing such approval and effective date.
    102. It is further ordered that the amendments adopted in this 
second report and order, and to Sec. Sec.  22.317, 22.947, 27.17, 
30.106, 74.632, 90.157, 90.631, and 101.65, will become effective after 
OMB review and approval of Sec.  1.953, on the effective date specified 
in a notice that the Commission will have published in the Federal 
Register announcing such approval and effective date.
    103. It is further ordered that, pursuant to sections 4(i) and 405 
of the Communications Act of 1934, 47 U.S.C. 154(i), 405, and Sec.  
1.106 of the Commission's rules, 47 CFR 1.106, the Motion of CTIA--The 
Wireless Association[supreg], AT&T Services, Inc., Cricket 
Communications, Inc., Rural Cellular Association, Sprint Nextel 
Corporation, T-Mobile USA, United States Cellular Corporation and 
Verizon Wireless To Withdraw Petition for Reconsideration, filed May 
31, 2011, to withdraw their Petition for Reconsideration, filed Aug. 6, 
2010, is granted.
    104. It is further ordered that, pursuant to section 801(a)(1)(A) 
of the Congressional Review Act, 5 U.S.C. 801(a)(1)(A), the Commission 
shall send a copy of the second report and order to Congress and to the 
Government Accountability Office.
    105. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of the second report and order, including the Initial Regulatory 
Flexibility Analysis and the Final Regulatory Flexibility Analysis, to 
the Chief Counsel for Advocacy of the Small Business Administration.

List of Subjects in 47 CFR Parts 1, 22, 24, 27, 30, 74, 80, 90, 95, 
and 101

    Communications common carriers, Radio, Reporting and recordkeeping 
requirements.

Federal Communications Commission.
Katura Jackson,
Federal Register Liaison Officer, Office of the Secretary.

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR parts 1, 22, 24, 27, 30, 74, 
80, 90, 95, and 101 as follows:

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 is revised to read as follows:

    Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 157, 160, 201, 
225, 227, 303, 309, 310, 332, 1403, 1404, 1451, 1452, and 1455.


0
2. Amend Sec.  1.907 by adding the definitions of ``Covered Geographic 
Licenses'' and ``Covered Site-based Licenses'' in alphabetical order to 
read as follows:


Sec.  1.907  Definitions.

* * * * *
    Covered Geographic Licenses. Covered geographic licenses consist of 
the following services: 1.4 GHz Service (part 27, subpart I of this 
chapter); 1.6 GHz Service (part 27, subpart J); 24 GHz Service and 
Digital Electronic Message Services (part 101, subpart G); 218-219 MHz 
Service (part 95, subpart F); 220-222 MHz Service, excluding public 
safety licenses (part 90, subpart T); 600 MHz Service (part 27, subpart 
N); 700 MHz Commercial Services (part 27, subparts F and H); 700 MHz 
Guard Band Service (part 27, subpart G); 800 MHz Specialized Mobile 
Radio Service (part 90, subpart S); 900 MHz Specialized Mobile Radio 
Service (part 90, subpart S); Advanced Wireless Services (part 27, 
subparts K and L); Air-Ground Radiotelephone Service (Commercial 
Aviation) (part 22, subpart G); Broadband Personal Communications 
Service (part 24, subpart E); Broadband Radio Service (part 27, subpart 
M); Cellular Radiotelephone Service (part 22, subpart H); Dedicated 
Short Range Communications Service, excluding public safety licenses 
(part 90, subpart M); H Block Service (part 27, subpart K); Local 
Multipoint Distribution Service (part 101, subpart L); Multichannel 
Video Distribution and Data Service (part 101, subpart P); 
Multilateration Location and Monitoring Service (part 90, subpart M); 
Multiple Address Systems (EAs) (part 101, subpart O); Narrowband 
Personal Communications Service (part 24, subpart D); Paging and 
Radiotelephone Service (part 22, subpart E; part 90, subpart P); VHF 
Public Coast Stations, including Automated Maritime Telecommunications 
Systems (part 80, subpart J); Upper Microwave Flexible Use Service 
(part 30); and Wireless Communications Service (part 27, subpart D).
    Covered Site-based Licenses. Covered site-based licenses consist of 
the following services: 220-222 MHz Service (site-based), excluding 
public safety licenses (part 90, subpart T of this

[[Page 41545]]

chapter); 800/900 MHz (SMR and Business and Industrial Land 
Transportation Pool) (part 90, subpart S); Aeronautical Advisory 
Stations (Unicoms) (part 87, subpart G); Air-Ground Radiotelephone 
Service (General Aviation) (part 22, subpart G); Alaska-Public Fixed 
Stations (part 80, subpart O); Broadcast Auxiliary Service (part 74, 
subparts D, E, F, and H); Common Carrier Fixed Point-to-Point, 
Microwave Service (part 101, subpart I); Industrial/Business Radio Pool 
(part 90, subpart C); Local Television Transmission Service (part 101, 
subpart J); Multiple Address Systems (site-based), excluding public 
safety licenses (part 101, subpart H); Non-Multilateration Location and 
Monitoring Service (part 90, subpart M); Offshore Radiotelephone 
Service (part 22, subpart I); Paging and Radiotelephone Service (site-
based) (part 22, subpart E); Private Carrier Paging (part 90, subpart 
P); Private Operational Fixed Point-to-Point Microwave Service, 
excluding public safety licenses (part 101, subpart H); Public Coast 
Stations (site-based) (part 80, subpart J); Radiodetermination Service 
Stations (Radionavigation Land Stations) (part 87, subpart Q); 
Radiolocation Service (part 90, subpart F); and Rural Radiotelephone 
Service (including Basic Exchange Telephone Radio Service) (part 22, 
subpart F).
* * * * *

0
3. Amend Sec.  1.934 by:
0
a. Revising paragraphs (a)(1)(ii);
0
b. Removing paragraph (a)(3); and
0
c. Revising paragraphs (b) and (c).
    The revisions read as follows:


Sec.  1.934  Defective applications and dismissal.

* * * * *
    (a) * * *
    (1) * * *
    (ii) If the applicant requests dismissal of its application without 
prejudice, the Commission will dismiss that application without 
prejudice, unless it is an application for which the applicant 
submitted the winning bid in a competitive bidding process.
* * * * *
    (b) Dismissal of mutually exclusive applications not granted. The 
Commission may dismiss mutually exclusive applications for which the 
applicant did not submit the winning bid in a competitive bidding 
process.
    (c) Dismissal for failure to prosecute. The Commission may dismiss 
applications for failure of the applicant to prosecute or for failure 
of the applicant to respond substantially within a specified time 
period to official correspondence or requests for additional 
information. Such dismissal may be with prejudice in cases of non-
compliance with Sec.  1.945. The Commission may dismiss applications 
with prejudice for failure of the applicant to comply with requirements 
related to a competitive bidding process.
* * * * *

0
4. Revise Sec.  1.949 to read as follows:


Sec.  1.949  Application for renewal of authorization.

    (a) Filing requirements. Applications for renewal of authorizations 
in the Wireless Radio Services must be filed no later than the 
expiration date of the authorization, and no sooner than 90 days prior 
to the expiration date. Renewal applications must be filed on the same 
form as applications for initial authorization in the same service, 
i.e., FCC Form 601 or 605.
    (b) Common expiration date. Licensees with multiple authorizations 
in the same service may request a common date on which such 
authorizations expire for renewal purposes. License terms may be 
shortened by up to one year but will not be extended.
    (c) Implementation. Covered Site-based Licenses, except Common 
Carrier Fixed Point-to-Point Microwave Service (part 101, subpart I of 
this chapter), and Covered Geographic Licenses in the 600 MHz Service 
(part 27, subpart N); 700 MHz Commercial Services (part 27, subpart F); 
Advanced Wireless Services (part 27, subpart L) (AWS-3 (1695-1710 MHz, 
1755-1780 MHz, and 2155-2180 MHz) and AWS-4 (2000-2020 MHz and 2180-
2200 MHz) only); and H Block Service (part 27, subpart K) must comply 
with paragraphs (d) through (h) of this section. All other Covered 
Geographic Licenses must comply with paragraphs (d) through (h) of this 
section beginning on January 1, 2023. Common Carrier Fixed Point-to-
Point Microwave Service (part 101, subpart I) must comply with 
paragraphs (d) through (h) of this section beginning on October 1, 
2018.
    (d) Renewal Standard. An applicant for renewal of an authorization 
of a Covered Site-based License or a Covered Geographic License must 
demonstrate that over the course of the license term, the licensee(s) 
provided and continue to provide service to the public, or operated and 
continue to operate the license to meet the licensee(s)' private, 
internal communications needs.
    (e) Safe harbors. An applicant for renewal will meet the Renewal 
Standard if it can certify that it has satisfied the requirements of 
one of the following safe harbors:
    (1) Covered Site-based Licenses. (i) The applicant must certify 
that it is continuing to operate consistent with its most recently 
filed construction notification (or most recent authorization, when no 
construction notification is required).
    (ii) The applicant must certify that no permanent discontinuance of 
service occurred during the license term. This safe harbor may be used 
by any Covered Site-based License.
    (2) Geographic licenses--commercial service. (i) For an applicant 
in its initial license term with an interim performance requirement, 
the applicant must certify that it has met its interim performance 
requirement and that over the portion of the license term following the 
interim performance requirement, the applicant continues to use its 
facilities to provide at least the level of service required by its 
interim performance requirement; and the licensee has met its final 
performance requirement and continues to use its facilities to provide 
at least the level of service required by its final performance 
requirement through the end of the license term. For an applicant in 
its initial license term with no interim performance requirement, the 
applicant must certify that it has met its final performance 
requirement and continues to use its facilities to provide at least the 
level of service required by its final performance requirement through 
the end of the license term. For an applicant in any subsequent license 
term, the applicant must certify that it continues to use its 
facilities to provide at least the level of service required by its 
final performance requirement through the end of any subsequent license 
terms.
    (ii) The applicant must certify that no permanent discontinuance of 
service occurred during the license term. This safe harbor may be used 
by any Covered Geographic License.
    (3) Geographic licenses--private systems. (i) For an applicant in 
its initial license term with an interim performance requirement, the 
applicant must certify that it has met its interim performance 
requirement and that over the portion of the license term following the 
interim performance requirement, the applicant continues to use its 
facilities to further the applicant's private business or public 
interest/public safety needs at or above the level required to meet its 
interim performance requirement; and the applicant has met its final 
performance requirement and continues to use its facilities to provide 
at least the level of operation required by its final performance 
requirement through the end of the license term. For an applicant in 
its initial license term

[[Page 41546]]

with no interim performance requirement, the applicant must certify 
that it has met its final performance requirement and continues to use 
its facilities to provide at least the level of operation required by 
its final performance requirement through the end of the license term. 
For an applicant in any subsequent license term, the applicant must 
certify that it continues to use its facilities to further the 
applicant's private business or public interest/public safety needs at 
or above the level required to meet its final performance requirement.
    (ii) The applicant must certify that no permanent discontinuance of 
operation occurred during the license term. This safe harbor may be 
used by any Covered Geographic License.
    (4) Partitioned or disaggregated license without a performance 
requirement. (i) The applicant must certify that it continues to use 
its facilities to provide service or to further the applicant's private 
business or public interest/public safety needs.
    (ii) The applicant must certify that no permanent discontinuance of 
service occurred during the license term. This safe harbor may be used 
by any Covered Geographic License.
    (f) Renewal Showing. If an applicant for renewal cannot meet the 
Renewal Standard in paragraph (d) of this section by satisfying the 
requirements of one of the safe harbors in paragraph (e) of this 
section, it must make a Renewal Showing, independent of its performance 
requirements, as a condition of renewal. The Renewal Showing must 
specifically address the Renewal Standard by including a detailed 
description of the applicant's provision of service (or, when allowed 
under the relevant service rules or pursuant to waiver, use of the 
spectrum for private, internal communication) during the entire license 
period and address, as applicable:
    (1) The level and quality of service provided by the applicant 
(e.g., the population served, the area served, the number of 
subscribers, the services offered);
    (2) The date service commenced, whether service was ever 
interrupted, and the duration of any interruption or outage;
    (3) The extent to which service is provided to rural areas;
    (4) The extent to which service is provided to qualifying tribal 
land as defined in Sec.  1.2110(e)(3)(i) of this chapter; and
    (5) Any other factors associated with the level of service to the 
public.
    (g) Regulatory Compliance Certification. An applicant for renewal 
of an authorization in the Wireless Radio Services identified in 
paragraph (d) of this section must make a Regulatory Compliance 
Certification certifying that it has substantially complied with all 
applicable FCC rules, policies, and the Communications Act of 1934, as 
amended.
    (h) Consequences of denial. If the Commission, or the Wireless 
Telecommunications Bureau acting under delegated authority, finds that 
a licensee has not met the Renewal Standard under paragraph (d) of this 
section, or that its Regulatory Compliance Certification under 
paragraph (g) of this section is insufficient, its renewal application 
will be denied, and its licensed spectrum will return automatically to 
the Commission for reassignment (by auction or other mechanism). In the 
case of certain services licensed site-by-site, the spectrum will 
revert automatically to the holder of the related overlay geographic-
area license. To the extent that an AWS-4 licensee also holds the 2 GHz 
Mobile Satellite Service (MSS) rights for the affected license area, 
the MSS protection rule in Sec.  27.1136 of this chapter will no longer 
apply in that license area.

0
5. Add Sec.  1.950 to read as follows:


Sec.  1.950  Geographic partitioning and spectrum disaggregation.

    (a) Definitions. The terms ``county and county equivalent,'' 
``geographic partitioning,'' and ``spectrum disaggregation'' as used in 
this section are defined as follows:
    (1) County and county equivalent. The terms county and county 
equivalent as used in this part are defined by Federal Information 
Processing Standards (FIPS) 6-4, which provides the names and codes 
that represent the counties and other entities treated as equivalent 
legal and/or statistical subdivisions of the 50 States, the District of 
Columbia, and the possessions and freely associated areas of the United 
States. Counties are the ``first-order subdivisions'' of each State and 
statistically equivalent entity, regardless of their local designations 
(county, parish, borough, etc.). Thus, the following entities are 
equivalent to counties for legal and/or statistical purposes: The 
parishes of Louisiana; the boroughs and census areas of Alaska; the 
District of Columbia; the independent cities of Maryland, Missouri, 
Nevada, and Virginia; that part of Yellowstone National Park in 
Montana; and various entities in the possessions and associated areas. 
The FIPS codes and FIPS code documentation are available online at 
http://www.itl.nist.gov/fipspubs/index.htm.
    (2) Geographic partitioning. Geographic partitioning is the 
assignment of a geographic portion of a geographic area licensee's 
license area.
    (3) Spectrum disaggregation. Spectrum disaggregation is the 
assignment of portions of blocks of a geographic area licensee's 
spectrum.
    (b) Eligibility. Covered Geographic Licenses are eligible for 
geographic partitioning and spectrum disaggregation.
    (1) Geographic partitioning. An eligible licensee may partition any 
geographic portion of its license area, at any time following grant of 
its license, subject to the following exceptions:
    (i) 220 MHz Service licensees must comply with Sec.  90.1019 of 
this chapter.
    (ii) Cellular Radiotelephone Service licensees must comply with 
Sec.  22.948 of this chapter.
    (iii) Multichannel Video & Distribution and Data Service licensees 
are only permitted to partition licensed geographic areas along county 
borders (Parishes in Louisiana or Territories in Alaska).
    (2) Spectrum disaggregation. An eligible licensee may disaggregate 
spectrum in any amount, at any time following grant of its license to 
eligible entities, subject to the following exceptions:
    (i) 220 MHz Service licensees must comply with Sec.  90.1019 of 
this chapter.
    (ii) Cellular Radiotelephone Service licensees must comply with 
Sec.  22.948 of this chapter.
    (iii) VHF Public Coast (156-162 MHz) spectrum may only be 
disaggregated in frequency pairs, except that the ship and coast 
transmit frequencies comprising Channel 87 (see Sec.  80.371(c) of this 
chapter) may be disaggregated separately.
    (iv) Disaggregation is not permitted in the Multichannel Video & 
Distribution and Data Service 12.2-12.7 GHz band.
    (c) Filing requirements. Parties seeking approval for geographic 
partitioning, spectrum disaggregation, or a combination of both must 
apply for a partial assignment of authorization by filing FCC Form 603 
pursuant to Sec.  1.948. Each request for geographic partitioning must 
include an attachment defining the perimeter of the partitioned area by 
geographic coordinates to the nearest second of latitude and longitude, 
based upon the 1983 North American Datum (NAD83). Alternatively, 
applicants may specify an FCC-recognized service area (e.g., Basic 
Trading Area, Economic Area, Major Trading Area, Metropolitan Service 
Area, or Rural Service Area), county, or county equivalent, in which

[[Page 41547]]

case, applicants need only list the specific FCC-recognized service 
area, county, or county equivalent names comprising the partitioned 
area.
    (d) Relocation of incumbent licensees. Applicants for geographic 
partitioning, spectrum disaggregation, or a combination of both must, 
if applicable, include a certification with their partial assignment of 
authorization application stating which party will meet any incumbent 
relocation requirements, except as otherwise stated in service-specific 
rules.
    (e) License term. The license term for a partitioned license area 
or disaggregated spectrum license is the remainder of the original 
licensee's license term.
    (f) Frequency coordination. Any existing frequency coordination 
agreements convey with the partial assignment of authorization for 
geographic partitioning, spectrum disaggregation, or a combination of 
both, and shall remain in effect for the term of the agreement unless 
new agreements are reached.
    (g) Performance requirements. Parties to geographic partitioning, 
spectrum disaggregation, or a combination of both, have two options to 
satisfy service-specific performance requirements (i.e., construction 
and operation requirements). Under the first option, each party may 
certify that it will individually satisfy any service-specific 
requirements and, upon failure, must individually face any service-
specific performance penalties. Under the second option, both parties 
may agree to share responsibility for any service-specific 
requirements. Upon failure to meet their shared service-specific 
performance requirements, both parties will be subject to any service-
specific penalties.
    (h) Unjust enrichment. Licensees making installment payments or 
that received a bidding credit, that partition their licenses or 
disaggregate their spectrum to entities that do not meet the 
eligibility standards for installment payments or bidding credits, are 
subject to the unjust enrichment requirements of Sec.  1.2111.

0
6. Add Sec.  1.953 to read as follows:


Sec.  1.953  Discontinuance of service or operations.

    (a) Termination of authorization. A licensee's authorization will 
automatically terminate, without specific Commission action, if the 
licensee permanently discontinues service or operations under the 
license during the license term. A licensee is subject to this 
provision commencing on the date it is required to be providing service 
or operating.
    (b) 180-day Rule for Geographic Licenses. Permanent discontinuance 
of service or operations for Covered Geographic Licenses is defined as 
180 consecutive days during which a licensee does not operate or, in 
the case of commercial mobile radio service providers, does not provide 
service to at least one subscriber that is not affiliated with, 
controlled by, or related to the licensee.
    (c) 365-day Rule for Site-based Licenses. Permanent discontinuance 
of service or operations for Covered Site-based Licenses is defined as 
365 consecutive days during which a licensee does not operate or, in 
the case of commercial mobile radio service providers, does not provide 
service to at least one subscriber that is not affiliated with, 
controlled by, or related to the providing carrier.
    (d) 365-day Rule for public safety licenses. Permanent 
discontinuance of operations is defined as 365 consecutive days during 
which a licensee does not operate. This 365-day rule applies to public 
safety licenses issued based on the applicant demonstrating eligibility 
under Sec.  90.20 or Sec.  90.529 of this chapter, or public safety 
licenses issued in conjunction with a waiver pursuant to section 337 of 
the Communications Act.
    (e) Channel keepers. Operation of channel keepers (devices that 
transmit test signals, tones, color bars, or some combination of these, 
for example) does not constitute operation or service for the purposes 
of this section.
    (f) Filing requirements. A licensee that permanently discontinues 
service as defined in this section must notify the Commission of the 
discontinuance within 10 days by filing FCC Form 601 or 605 requesting 
license cancellation. An authorization will automatically terminate, 
without specific Commission action, if service or operations are 
permanently discontinued as defined in this section, even if a licensee 
fails to file the required form requesting license cancellation.
    (g) Extension request. A licensee may file a request for a longer 
discontinuance period for good cause. An extension request must be 
filed at least 30 days before the end of the applicable 180-day or 365-
day discontinuance period. The filing of an extension request will 
automatically extend the discontinuance period a minimum of the later 
of an additional 30 days or the date upon which the Wireless 
Telecommunications Bureau acts on the request.

0
7. Amend Sec.  1.955 by revising paragraph (a)(3) to read as follows:


Sec.  1.955  Termination of authorizations.

* * * * *
    (a) * * *
    (3) Service discontinued. Authorizations automatically terminate, 
without specific Commission action, if service or operations are 
permanently discontinued. See Sec.  1.953.
* * * * *

PART 22--PUBLIC MOBILE SERVICES

0
8. The authority citation for part 22 continues to read as follows:

    Authority: 47 U.S.C. 154, 222, 303, 309 and 332.


Sec.  22.131  [Amended]

0
9. Amend Sec.  22.131 as follows:
0
a. Remove paragraph (b)(1);
0
b. Redesignate paragraphs (b)(2) through (4) as paragraphs (b)(1) 
through (3);
0
c. Remove paragraph (c)(3)(i);
0
d. Redesignate paragraphs (c)(3)(ii) and (iii) as paragraphs (c)(3)(i) 
and (ii);
0
e. Remove paragraph (c)(4)(i); and
0
f. Redesignate paragraphs (c)(4)(ii) through (iv) as paragraphs 
(c)(4)(i) through (iii).


Sec.  22.317  [Removed]

0
10. Remove Sec.  22.317.


Sec.  22.513  [Amended]

0
11. Amend Sec.  22.513 by removing paragraphs (f) and (g).


Sec.  22.947  [Removed]

0
12. Remove Sec.  22.947.

PART 24--PERSONAL COMMUNICATIONS SERVICES

0
13. The authority citation for part 24 continues to read as follows:

    Authority: 47 U.S.C. 154, 301, 302, 303, 309 and 332.


Sec.  24.16  [Removed]

0
14. Remove Sec.  24.16.


Sec.  24.104  [Amended]

0
15. Amend Sec.  24.104 by removing paragraphs (f) and (g).


Sec.  24.714  [Amended]

0
16. Amend Sec.  24.714 by removing paragraph (e).

PART 27--MISCELLANEOUS WIRELESS COMMUNICATIONS SERVICES

0
17. The authority citation for part 27 continues to read as follows:

    Authority: 47 U.S.C. 154, 301, 302a, 303, 307, 309, 332, 336, 
337, 1403, 1404, 1451, and 1452, unless otherwise noted.


[[Page 41548]]



0
a. Revising the section heading;
0
b. Removing and reserving paragraphs (b) through (f); and
0
c. Removing paragraphs (q)(7), (r)(6), (s)(6), and (t)(6).
    The revision reads as follows:


Sec.  27.14  Construction requirements.

* * * * *


Sec.  27.15  [Amended]

0
19. Amend Sec.  27.15 by removing paragraph (d).


Sec.  27.17  [Removed]

0
20. Remove Sec.  27.17.

PART 30--UPPER MICROWAVE FLEXIBLE USE SERVICE

0
21. The authority citation for part 30 continues to read as follows:

    Authority: 47 U.S.C. 151, 152, 153, 154, 301, 303, 304, 307, 
309, 310, 316, 332, 1302.


Sec.  30.105  [Amended]

0
22. Amend Sec.  30.105 by removing paragraph (d).


Sec.  30.106  [Removed]

0
23. Remove Sec.  30.106.

PART 74--EXPERIMENTAL RADIO, AUXILIARY, SPECIAL BROADCAST AND OTHER 
PROGRAM DISTRIBUTIONAL SERVICES

0
24. The authority citation for part 74 continues to read as follows:

    Authority: 47 U.S.C. 154, 302a, 303, 307, 309, 310, 336 and 554.


Sec.  74.632  [Amended]

0
25. Amend Sec.  74.632 by removing paragraph (g).

PART 80--STATIONS IN THE MARITIME SERVICES

0
26. The authority citation for part 80 continues to read as follows:

    Authority: Secs. 4, 303, 307(e), 309, and 332, 48 Stat. 1066, 
1082, as amended; 47 U.S.C. 154, 303, 307(e), 309, and 332, unless 
otherwise noted. Interpret or apply 48 Stat. 1064-1068, 1081-1105, 
as amended; 47 U.S.C. 151-155, 301-609; 3 UST 3450, 3 UST 4726, 12 
UST 2377.

0
27. Amend Sec.  80.60 by revising paragraph (d) to read as follows:


Sec.  80.60  Partitioned licenses and disaggregated spectrum.

* * * * *
    (d) Partitioning and disaggregation construction requirements for 
site-based AMTS, and nationwide or multi-region LF, MF, and HF public 
coast. Parties seeking to acquire a partitioned license or 
disaggregated spectrum from a site-based AMTS, or nationwide or multi-
region LF, MF, and HF public coast licensee will be required to 
construct and commence ``service to subscribers'' in all facilities 
acquired through such transactions within the original construction 
deadline for each facility as set forth in Sec.  80.49. Failure to meet 
the individual construction deadline will result in the automatic 
termination of the facility's authorization.

PART 90--PRIVATE LAND MOBILE RADIO SERVICES

0
28. The authority citation for part 90 continues to read as follows:

    Authority: Sections 4(i), 11, 303(g), 303(r), and 332(c)(7) of 
the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 161, 
303(g), 303(r), and 332(c)(7), and Title VI of the Middle Class Tax 
Relief and Job Creation Act of 2012, Public Law 112-96, 126 Stat. 
156.


Sec.  90.157  [Removed]

0
29. Remove Sec.  90.157.

0
30. Amend Sec.  90.165 by:
0
a. Removing paragraph (b)(1);
0
b. Redesignating paragraphs (b)(2) through (4) as paragraphs (b)(1) 
through (3);
0
c. Removing paragraph (c)(3)(i);
0
d. Redesignating paragraphs (c)(3)(ii) and (iii) as paragraphs 
(c)(3)(i) and (ii);
0
e. Revising newly redesignated paragraph (c)(3)(ii);
0
f. Removing paragraph (c)(4)(i); and
0
g. Redesignating paragraphs (c)(4)(ii) through (iv) as paragraphs 
(c)(4)(i) through (iii).
    The revision reads as follows:


Sec.  90.165  Procedures for mutually exclusive applications.

* * * * *
    (c) * * *
    (3) * * *
    (ii) If any mutually exclusive application filed on the earliest 
filing date is an application for modification, a same-day filing group 
is used.
* * * * *


Sec.  90.365  [Amended]

0
31. Amend Sec.  90.365 by removing paragraph (d).

0
32. Amend Sec.  90.375 by revising paragraph (b) to read as follows:


Sec.  90.375  RSU license areas, communication zones and registrations.

* * * * *
    (b) Applicants who are approved in accordance with FCC Form 601 
will be granted non-exclusive licenses for all non-reserved DSRCS 
frequencies (see Sec.  90.377). Such licenses serve as a prerequisite 
of registering individual RSUs located within the licensed geographic 
area described in paragraph (a) of this section. Licensees must 
register each RSU in the Universal Licensing System (ULS) before 
operating such RSU. RSU registrations are subject, inter alia, to the 
requirements of Sec.  1.923 of this chapter as applicable (antenna 
structure registration, environmental concerns, international 
coordination, and quiet zones). Additionally, RSUs at locations subject 
to NTIA coordination (see Sec.  90.371(b)) may not begin operation 
until NTIA approval is received. Registrations are not effective until 
the Commission posts them on the ULS. It is the DSRCS licensee's 
responsibility to delete from the registration database any RSUs that 
have been discontinued.
* * * * *

0
33. Amend Sec.  90.631 by revising paragraph (f) to read as follows:


Sec.  90.631  Trunked systems loading, construction and authorization 
requirements.

* * * * *
    (f) If a station is not placed in permanent operation, in 
accordance with the technical parameters of the station authorization, 
within one year, except as provided in Sec.  90.629, its license 
cancels automatically. For purposes of this section, a base station is 
not considered to be placed in operation unless at least two associated 
mobile stations, or one control station and one mobile station, are 
also placed in operation.
* * * * *

0
34. Amend Sec.  90.685 by revising paragraph (a) to read as follows:


Sec.  90.685  Authorization, construction and implementation of EA 
licenses.

    (a) EA licenses in the 809-824/854-869 MHz band will be issued for 
a term not to exceed ten years.
* * * * *

0
35. Revise Sec.  90.743 to read as follows:


Sec.  90.743  Renewal requirements.

    Until January 1, 2023, all licensees seeking renewal of their 
authorizations at the end of their license term must file a renewal 
application in accordance with the provisions of Sec.  1.949 of this 
chapter. Licensees must demonstrate, in their application, that:
    (a) They have provided ``substantial'' service during their past 
license term. ``Substantial'' service is defined in this rule as 
service that is sound, favorable, and substantially above a level of 
mediocre service that just might minimally warrant renewal; and
    (b) They have substantially complied with applicable FCC rules, 
policies, and

[[Page 41549]]

the Communications Act of 1934, as amended.


Sec.  90.813  [Amended]

0
36. Amend Sec.  90.813 by removing paragraph (e).


Sec.  90.816  [Removed]

0
37. Remove Sec.  90.816.


Sec.  90.911  [Amended]

0
38. Amend Sec.  90.911 by removing paragraphs (e) and redesignating 
paragraph (f) as (e).


Sec.  90.1019  [Amended]

0
39. Amend Sec.  90.1019 by removing paragraph (d).

PART 95--PERSONAL RADIO SERVICES

0
40. The authority citation for part 95 continues to read as follows:

    Authority: 47 U.S.C. 154, 301, 302(a), 303, and 307(e).


Sec.  95.1923  [Amended]

0
41. Amend Sec.  95.1923 by removing paragraph (d).

0
42. Amend Sec.  95.1933 by revising paragraph (a) and paragraph (b) 
introductory text to read as follows:


Sec.  95.1933  Construction requirements.

    (a) Each 218-219 MHz Service licensee must make a showing of 
``substantial service'' within ten years of the license grant. Until 
January 1, 2023, ``substantial service'' assessment will be made at 
renewal pursuant to the provisions and procedures contained in Sec.  
1.949 of this chapter.
    (b) Until January 1, 2023, each 218-219 MHz Service licensee must 
file a report to be submitted to inform the Commission of the service 
status of its system. The report must be labeled as an exhibit to the 
renewal application. At minimum, the report must include:
* * * * *

PART 101--FIXED MICROWAVE SERVICES

0
43. The authority citation for part 101 continues to read as follows:

    Authority:  47 U.S.C. 154, 303.


0
44. Revise Sec.  101.65 to read as follows:


Sec.  101.65  Termination of station authorizations.

    In addition to the provisions of Sec.  1.953 of this chapter, a 
site-based license will be automatically terminated in whole or in part 
without further notice to the licensee upon the voluntary removal or 
alteration of the facilities, so as to render the station not 
operational for a period of 30 days or more. A licensee is subject to 
this provision commencing on the date it is required to be providing 
service or operating under Sec.  101.63. This provision is inapplicable 
to blanket authorizations to operate fixed stations at temporary 
locations pursuant to the provisions of Sec.  101.31(a)(2). See Sec.  
101.305 for additional rules regarding temporary and permanent 
discontinuation of service.

0
45. Amend Sec.  101.527 by revising paragraph (a) and paragraph (b) 
introductory text to read as follows:


Sec.  101.527  Construction requirements for 24 GHz operations.

    (a) Each licensee must make a showing of ``substantial service'' 
within ten years of its license grant. ``Substantial service'' is a 
service which is sound, favorable, and substantially above a level of 
mediocre service which just might minimally warrant renewal during its 
past license term. Until January 1, 2023, ``substantial service'' 
assessment will be made at renewal pursuant to the provisions and 
procedures set forth in Sec.  1.949 of this chapter.
    (b) Until January 1, 2023, each licensee must, at a minimum file:
* * * * *


Sec.  101.529  [Removed]

0
46. Remove Sec.  101.529.


Sec.  101.535  [Amended]

0
47. Amend Sec.  101.535 by removing paragraph (d).

0
48. Revise Sec.  101.1011 to read as follows:


Sec.  101.1011  Construction requirements.

    LMDS licensees must make a showing of ``substantial service'' in 
their license area within ten years of being licensed. ``Substantial'' 
service is defined as service which is sound, favorable, and 
substantially above a level of mediocre service which 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.


Sec.  101.1111  [Amended]

0
49. Amend Sec.  101.1111 by removing paragraph (e).

0
50. Amend Sec.  101.1323 by revising paragraph (c) to read as follows:


Sec.  101.1323  Spectrum aggregation, disaggregation, and partitioning.

* * * * *
    (c) Construction requirements. Responsible parties must submit 
supporting documents showing compliance with the respective 
construction requirements within the appropriate construction 
benchmarks set forth in Sec.  101.1325.
* * * * *


Sec.  101.1327  [Removed]

0
51. Remove Sec.  101.1327.

0
52. Amend Sec.  101.1413 by revising the section heading, paragraph (b) 
introductory text, and paragraph (c) to read as follows:


Sec.  101.1413  License term and construction requirements.

* * * * *
    (b) As a construction requirement, MVDDS licensees must make a 
showing of substantial service at the end of five years into the 
license period and ten years into the license period. The substantial 
service requirement is defined as a service that is sound, favorable, 
and substantially above a level of mediocre service which might 
minimally warrant renewal. At the end of five years into the license 
term and ten years into the license period, the Commission will 
consider factors such as:
* * * * *
    (c) The renewal application of an MVDDS licensee is governed by 
Sec.  1.949 of this chapter.


Sec.  101.1415  [Amended]

0
53. Amend Sec.  101.1415 by removing paragraph (f).

0
54. Amend Sec.  101.1513 by revising the section heading to read as 
follows:


Sec.  101.1513  License term.

* * * * *
[FR Doc. 2017-18501 Filed 8-31-17; 8:45 am]
BILLING CODE 6712-01-P



                                              41530            Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations

                                                 Title: First Amendment to Nationwide                 executed the First Amendment to the                   review process. If, within the thirty-day
                                              Programmatic Agreement for the                          Collocation Agreement, to tailor the                  period, the SHPO either informs the
                                              Collocation of Wireless Antennas.                       Section 106 process for small wireless                applicant that the structure is not a
                                                 Form Number: N/A.                                    deployments by excluding deployments                  contributing or compatible element
                                                 Respondents: Business or other for-                  that have minimal potential for adverse               within the historic district, or the SHPO
                                              profit entities, not-for-profit institutions,           effects on historic properties.                       fails to respond to the applicant within
                                              and State, local, or Tribal governments.                   The following are the information                  the thirty-day period, the applicant has
                                                 Number of Respondents and                            collection requirements in connection                 no further Section 106 review
                                              Responses: 71 respondents; 765                          with the amended provisions of                        obligations, provided that the
                                              responses.                                              Appendix B of Part 1 of the                           collocation meets the certain volumetric
                                                 Estimated Time per Response: 1                       Commission’s rules (47 CFR pt.1, App.                 and ground disturbance provisions. The
                                              hour–5 hours.                                           B):                                                   First Amendment to the Collocation
                                                 Frequency of Response: Third-party                      • Stipulation VII.C of the amended                 Agreement establishes new exclusions
                                              disclosure reporting requirement.                       Collocation Agreement provides that                   from the section 106 review process for
                                                 Obligation to Respond: Required to                   proposals to mount a small antenna on                 physically small deployments like DAS
                                              obtain or retain benefits. Statutory                    a traffic control structure (i.e., traffic            and small cells, fulfilling a directive in
                                              authority for this information collection               light) or on a light pole, lamp post or               the Commission’s Infrastructure Report
                                              is contained in sections 1, 2, 4(i), 7, 301,            other structure whose primary purpose                 and Order, 80 FR 1238, Jan. 8, 2015, to
                                              303, 309, and 332 of the                                is to provide public lighting, where the              further streamline review of these
                                              Communications Act of 1934, as                          structure is located inside or within 250             installations. These new exclusions will
                                              amended, 47 U.S.C. 151, 152, 154(i),                    feet of the boundary of a historic                    reduce the cost, time, and burden
                                              157, 301, 303, 309, 332, and section 106                district, are generally subject to review             associated with deploying small
                                              of the National Historic Preservation Act               through the section 106 process. These                facilities in many settings, and provide
                                              of 1966, 54 U.S.C. 306108.                              proposed collocations will be excluded                opportunities to increase densification
                                                 Total Annual Burden: 2,869 hours.                    from such review on a case-by-case                    at low cost and with very little impact
                                                 Total Annual Cost: $82,285.                          basis, if (1) the collocation licensee or             on historic properties. Facilitating these
                                                 Nature and Extent of Confidentiality:                the owner of the structure has not                    deployments thus directly advances
                                              No known confidentiality between third                  received written or electronic                        efforts to roll out 5G service in
                                              parties.                                                notification that the FCC is in receipt of            communities across the country.
                                                 Privacy Act Impact Assessment: There                 a complaint from a member of the
                                              are no impacts under the Privacy Act.                                                                         Federal Communications Commission.
                                                                                                      public, an Indian Tribe, a SHPO or the
                                                 Needs and Uses: The Commission                                                                             Amy Brett,
                                                                                                      Council, that the collocation has an
                                              requested OMB approval for new                          adverse effect on one or more historic                Associate Chief, Competition and
                                              disclosure requirements pertaining to                                                                         Infrastructure Policy Division, Wireless
                                                                                                      properties; and (2) the structure is not              Telecommunications Bureau.
                                              the First Amendment to Nationwide                       historic (not a designated National
                                              Programmatic Agreement for the                                                                                [FR Doc. 2017–18565 Filed 8–31–17; 8:45 am]
                                                                                                      Historic Landmark or a property listed
                                              Collocation of Wireless Antennas (First                 in or eligible for listing in the National            BILLING CODE 6712–01–P
                                              Amendment) to address the review of                     Register of Historic Places) or
                                              deployments of small wireless antennas                  considered a contributing or compatible
                                              and associated equipment under section                                                                        FEDERAL COMMUNICATIONS
                                                                                                      element within the historic district,
                                              106 of the National Historic                                                                                  COMMISSION
                                                                                                      under certain procedures. These
                                              Preservation Act (NHPA) (54 U.S.C.                      procedures require that applicant must                47 CFR Parts 1, 22, 24, 27, 30, 74, 80,
                                              306108 (formerly codified at 16 U.S.C.                  request in writing that the SHPO concur               90, 95, and 101
                                              470f). The FCC, the Advisory Council                    with the applicant’s determination that
                                              on Historic Preservation (Council), and                 the structure is not a contributing or                [WT Docket No. 10–112; FCC 17–105]
                                              the National Conference of State                        compatible element within the historic
                                              Historic Preservation Officers                                                                                Uniform License Renewal,
                                                                                                      district, and the applicant’s written
                                              (NCSHPO) agreed to amend the                                                                                  Discontinuance of Operation, and
                                                                                                      request must specify the traffic control
                                              Nationwide Programmatic Agreement                       structure, light pole, or lamp post on                Geographic Partitioning and Spectrum
                                              for the Collocation of Wireless Antennas                which the applicant proposes to                       Disaggregation Rules and Policies for
                                              (Collocation Agreement) to account for                  collocate and explain why the structure               Certain Wireless Radio Services
                                              the limited potential of small wireless                 is not a contributing element based on                AGENCY:  Federal Communications
                                              antennas and associated equipment,                      the age and type of structure, as well as             Commission.
                                              including Distributed Antenna Systems                   other relevant factors. The SHPO has                  ACTION: Final rule.
                                              (DAS) and small cell facilities, to affect              thirty days from its receipt of such
                                              historic properties. The Collocation                    written notice to inform the applicant                SUMMARY:    In this document, the Federal
                                              Agreement addresses historic                            whether it disagrees with the applicant’s             Communications Commission adopts
                                              preservation review for collocations on                 determination that the structure is not a             rules to streamline and harmonize the
                                              existing towers, buildings, and other                   contributing or compatible element                    Commission’s license renewal and
                                              non-tower structures. Under the                         within the historic district. If within the           service continuity rules for the Wireless
                                              Collocation Agreement, most antenna                     thirty-day period, the SHPO informs the               Radio Services (WRS). This unified
                                              collocations on existing structures are                 applicant that the structure is a                     regulatory framework includes:
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                                              excluded from section 106 historic                      contributing element or compatible                    establishing a consistent standard for
                                              preservation review, with a few                         element within the historic district or               renewing wireless licenses; setting forth
                                              exceptions defined to address                           that the applicant has not provided                   safe harbors providing expedited
                                              potentially problematic situations. On                  sufficient information for a                          renewal for licensees that meet their
                                              August 3, 2016, the Commission’s                        determination, the applicant may not                  initial term construction requirement
                                              Wireless Telecommunications Bureau,                     deploy its facilities on that structure               and generally remain operating at or
                                              ACHP, and NCSHPO finalized and                          without completing the Section 106                    above that level; adopting consistent


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                                                               Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations                                         41531

                                              service continuity rules, which provide                 Affairs Bureau at (202) 418–0530                      and substantially complying with the
                                              for automatic termination of any license                (voice), (202) 418–0432 (TTY).                        Commission’s rules (including any
                                              on which a licensee permanently                           The Commission will send a copy of                  applicable performance requirements)
                                              discontinues service or operation;                      the Order in a report to be sent to                   and policies and the Act; (2) competing
                                              eliminating unnecessary, legacy                         Congress and the Government                           renewal applications would be
                                              ‘‘comparative renewal rules’’; and                      Accountability Office pursuant to the                 prohibited; and (3) if a license is not
                                              requiring that when portions of                         Congressional Review Act, see 5 U.S.C.                renewed, the associated spectrum
                                              geographic licenses are sold, both                      801(a)(1)(A).                                         would be returned to the Commission
                                              parties to the transaction have a clear                                                                       for reassignment. For services licensed
                                                                                                      I. Second Report and Order
                                              construction obligation and penalty in                                                                        by site, the Commission proposed to
                                              the event of failure, closing a loophole                A. Renewal Requirements for Wireless                  modify the first part of this approach by
                                              used to avoid the Commission’s                          Radio Services                                        requiring affected licensees to certify
                                              construction requirements. This action                     1. Commission licensing records                    that they are continuing to operate
                                              will enhance competition and facilitate                 reflect that, over the next 10 years, the             consistent with their applicable
                                              robust use of the nation’s scarce                       Commission can expect more than                       construction notification(s) or
                                              spectrum resources.                                                                                           authorization(s) (where the filing of
                                                                                                      50,000 renewal applications to be filed
                                              DATES: Effective October 2, 2017, except                                                                      construction notifications is not
                                                                                                      by geographic-area licensees and more
                                              for the amendments to §§ 1.949, 1.950,                                                                        required), rather than making a renewal
                                                                                                      than 625,000 by site-based licensees. By
                                              and 1.953, which contain information                                                                          showing.
                                                                                                      its Order, the Commission implements                     4. Renewal Standard. The
                                              collection requirements that require                    standardized renewal requirements and
                                              approval by the Office of Management                                                                          Commission adopts a unified renewal
                                                                                                      expeditious renewal procedures, while                 standard for most Wireless Radio
                                              and Budget (OMB) under the Paperwork                    continuing to ensure that licenses are
                                              Reduction Act (PRA), and which the                                                                            Services licensees, both geographic and
                                                                                                      renewed in the public interest as                     site-based. A clear, consistent standard
                                              Commission will announce by                             required by the Communications Act of
                                              publishing a document in the Federal                                                                          will promote the efficient use of
                                                                                                      1934, as amended (Act). The                           spectrum resources and will serve the
                                              Register. The amendments to                             Commission finds that adoption of
                                              paragraphs (e), (q)(7), (r)(6), (s)(6), and                                                                   public interest by providing licensees
                                                                                                      uniform renewal rules will promote the                certainty regarding their renewal
                                              (t)(6) of § 27.14 will become effective                 efficient use of spectrum resources,
                                              after OMB review and approval of                                                                              requirements. To qualify for renewal,
                                                                                                      serve the public interest by providing                each WRS licensee must demonstrate
                                              § 1.949, which the Commission will                      licensees certainty regarding their
                                              announce by publishing a document in                                                                          that over the course of its license term,
                                                                                                      license renewal requirements,                         the licensee either: (1) Provided and
                                              the Federal Register; and the                           encourage licensees to invest in new
                                              amendments to §§ 22.317, 22.947, 27.17,                                                                       continues to provide service to the
                                                                                                      facilities and services, and facilitate               public, taking into account the periods
                                              30.106, 74.632, 90.157, 90.631, and                     their business and network planning.                  of time the applicable service-specific
                                              101.65 will become effective after OMB                     2. The Commission’s current renewal                rules give licensees to construct
                                              review and approval of § 1.953, and                     requirements vary widely. Some service                facilities and meet performance
                                              which the Commission will announce                      rules include comprehensive filing and                benchmarks, or (2) operated and
                                              by publishing a document in the                         processing procedures, while others                   continues to operate over the course of
                                              Federal Register.                                       contain only minimal guidance. For                    the license term to address the
                                              FOR FURTHER INFORMATION CONTACT:                        example, some radio services have                     licensee’s private, internal
                                              Joyce Jones at joyce.jones@fcc.gov, of the              evaluation criteria for a renewal                     communications needs, again taking
                                              Wireless Telecommunications Bureau,                     applicant involved in a comparative                   into account the periods of time the
                                              Mobility Division, (202) 418–1327. For                  renewal proceeding but no procedures                  applicable service-specific rules give
                                              additional information concerning the                   for filing competing applications. Some               licensees to construct facilities and meet
                                              PRA information collection                              services require a detailed showing that              performance benchmarks.
                                              requirements contained in this                          the licensee has provided substantial                    5. More specifically, for renewal at the
                                              document, contact Cathy Williams at                     service during the license term. The                  end of an initial license term, the
                                              (202) 418–2918 or send an email to                      renewal rules for some of the                         licensee must demonstrate that it timely
                                              PRA@fcc.gov.                                            Commission’s newer services generally                 constructed to any level(s) required by
                                              SUPPLEMENTARY INFORMATION: This is a                    require the licensee to be providing                  the service-specific rules and, thereafter,
                                              summary of the Commission’s Second                      service or operating on an ongoing basis,             consistent with the Commission’s
                                              Report and Order (Order) in WT Docket                   after construction, during the license                permanent discontinuance rules,
                                              No. 10–112, FCC 17–105, released on                     term.                                                 continuously provided service or
                                              August 3, 2017. The complete text of the                   3. In an NPRM released on May 25,                  operated at or above the required
                                              Order, including all Appendices, is                     2010 (WT Docket No. 10–112) (WRS                      level(s) for the remainder of the license
                                              available for inspection and copying                    Reform NPRM), the Commission                          term. For subsequent renewals, the
                                              during normal business hours in the                     proposed to adopt renewal requirements                licensee must demonstrate that, over the
                                              FCC Reference Center, 445 12th Street                   for numerous Wireless Radio Services                  license term at issue, it continuously
                                              SW., Room CY–A157, Washington, DC                       based on the Commission’s model for                   provided service to the public or
                                              20554, or by downloading the text from                  the 700 MHz Commercial Services Band                  operated under the license to meet the
                                              the Commission’s Web site at https://                   licensees. Under this three-part                      licensee’s private, internal
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                                              apps.fcc.gov/edocs_public/attachmatch/                  approach: (1) Renewal applicants would                communications needs, at or above the
                                              FCC-17-105A1.pdf.                                       file a detailed renewal showing,                      level required to meet the final
                                                 Alternative formats are available for                demonstrating that they are providing                 construction requirement during the
                                              people with disabilities (Braille, large                service to the public (or, when allowed               initial term of the license. In all events,
                                              print, electronic files, audio format), by              under the relevant service rules or                   the licensee also must certify that its
                                              sending an email to FCC504@fcc.gov or                   pursuant to waiver, using the spectrum                service or operations are continuing.
                                              calling the Consumer and Government                     for private, internal communications)                 This requirement is reflected in the new


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                                              41532            Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations

                                              § 1.949 the Commission adopts today,                    Thus, under the Commission’s current                  proposed in the WRS Reform NPRM
                                              which replaces separate renewal rules                   rules, those licensees with a substantial             would cause uncertainty in the renewal
                                              for each service in various rule parts, as              service performance requirement at the                process and create undue administrative
                                              reflected in the final rules.                           end of their initial license term are                 burdens for licensees and Commission
                                                 6. The renewal standard the                          subject to two distinct substantial                   staff. Some commenters suggest that the
                                              Commission adopts today follows the                     service requirements, one to support                  Commission apply a certification
                                              approach the Commission adopted in                      their renewal application and one for                 process for all renewal applications.
                                              many of its proceedings for new                         performance purposes. The renewal                     Other commenters suggest that the
                                              wireless services over the past decade.                 standard the Commission adopts today                  Commission should adopt some form of
                                              Beginning with the 700 MHz First                        and the accompanying discussion                       a safe harbor.
                                              Report and Order in 2007 (WT Docket                     should make it more readily apparent to                  11. The Commission agrees that
                                              No. 06–150), and continuing to the 2016                 licensees that the showing required for               clearer and more certain renewal
                                              600 MHz Report and Order (GN Docket                     renewal is distinct from the showing                  processes will benefit both licensees
                                              No. 12–268), the Commission has                         required to meet a performance                        and the Commission and concludes that
                                              established that licensees ‘‘must                       requirement.                                          adopting a set of safe harbors—based on
                                              demonstrate that they are providing                        8. As the Commission stated in the                 licensee certifications—will serve the
                                              adequate levels of service over the                     WRS Reform NPRM, the Wireless Radio                   public interest by reducing filing
                                              course of their license terms.’’ Most                   Services that are licensed by rule or on              burdens on licensees and concentrating
                                              recently, the Commission applied the                    a ‘‘personal’’ basis or that have no                  scarce Commission resources on
                                              same principles in the Spectrum                         construction/performance obligation are               reviewing renewal filings that warrant
                                              Frontiers Report and Order (GN Docket                   beyond the scope of this proceeding and               close scrutiny. Accordingly, the
                                              No. 14–177), concluding that Upper                      are not encompassed within the renewal                Commission adopts four safe harbors to
                                              Microwave Flexible Use Service                          policies the Commission adopts today.                 accommodate four license renewal
                                              (UMFUS) licensees would meet the                        Similarly, these policies do not extend               scenarios by which a renewal applicant
                                              renewal standard in their initial license               to public safety licenses issued based on             can meet the renewal standard adopted
                                              terms if they met certain performance                   the applicant demonstrating eligibility               in this Order. These license renewal safe
                                              benchmarks and were ‘‘using [their]                     under §§ 90.20 or 90.529, or public                   harbors are for (1) site-based licenses;
                                              facilities to provide service.’’ For                    safety licenses issued in conjunction                 (2) wireless providers using geographic
                                              subsequent license terms, the                           with a waiver pursuant to section 337 of              licenses; (3) private systems using
                                              Commission concluded that it would                      the Act. The Commission also excludes                 geographic licenses; and (4) partitioned
                                              ‘‘award a renewal expectancy for                        the Educational Broadband Service                     or disaggregated licenses without a
                                              subsequent license terms if the licensee                (EBS) from application of the renewal                 performance requirement. In a future
                                              continues to provide at least the                       requirements articulated in the Order                 proceeding, the Commission may
                                              initially-required level of service                     since this service presents unique issues             consider additional safe harbors as
                                              through the end of any subsequent                       that are under consideration in a                     necessary and warranted. If a licensee is
                                              license terms.’’ Today, the Commission                  separate, comprehensive EBS                           unable to meet the requirements of one
                                              applies that policy across the board to                 rulemaking proceeding (See WT Docket                  of the enumerated safe harbors, the
                                              most WRS licenses, finding that these                   No. 03–66).                                           licensee must make a more detailed
                                              renewal requirements are in the public                     9. In contrast, the Commission finds               ‘‘renewal showing’’ as part of its
                                              interest and their benefits outweigh any                it is no longer necessary to provide any              renewal application; the requirements
                                              likely costs.                                           sort of modified renewal requirements                 for a renewal showing are described
                                                 7. As the Commission has stated in a                 for Broadband Radio Service (BRS)                     following the discussion of the renewal
                                              number of decisions, a licensee’s                       licensees as the Commission had                       safe harbors.
                                              renewal obligations are distinct from its               proposed in the WRS Reform NPRM.                         12. Each safe harbor scenario is based
                                              performance (also known as                              Given that the BRS transition, which                  on three certifications, which are subject
                                              construction or buildout) requirements.                 began in 2010, is now complete, the                   to the Form 601 condition that ‘‘[w]illful
                                              Many of the Commission’s specific                       Commission concludes that the BRS is                  false statements made on this form or
                                              service rules require performance                       appropriately included within the                     any attachments are punishable by fine
                                              showings to be made at the midpoint                     overall renewal framework now. The                    and/or imprisonment (18 U.S.C. 1001)
                                              and end of an initial license term                      Commission also rejects Motorola’s                    and/or revocation of any station license
                                              regarding population or area covered.                   request that the partitioned and/or                   or construction permit (47 U.S.C.
                                              For some services, licensees must                       disaggregated Part 80 VHF Public Coast                312(a)(1)), and/or forfeiture (47 U.S.C.
                                              demonstrate, or may elect to                            (VPC) Service spectrum it acquired for                503).’’ If the renewal applicant, in good
                                              demonstrate, substantial service as their               the purpose of promoting public safety                faith, can make all three certifications,
                                              performance requirement during their                    and private land mobile systems be                    its renewal application will be subject to
                                              initial license term. Under the                         excluded from application of the                      routine processing, and no further
                                              Commission’s performance requirement                    Commission’s generally applicable                     detailed renewal showing will be
                                              rules, a licensee generally provides a                  renewal framework. The Commission is                  required as part of the renewal
                                              snapshot in time (usually a date in close               not persuaded that the characteristics of             application. The first certification in
                                              proximity to, but no later than, the                    the Motorola-held VPC Service                         each scenario addresses the renewal
                                              construction deadline) of the level of                  spectrum and its planned usage warrant                applicant’s ongoing provision of service
                                              service that it is providing to the public              different treatment from other WRS                    and/or operations, and is tailored to the
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                                              or its level of operation. By contrast, the             licenses regarding the renewal rules,                 particular nature of licenses covered
                                              showing for renewal—also sometimes                      and thus the Commission does not grant                under a given safe harbor. The second
                                              referred to as a substantial service                    the exception from the renewal policies               certification requires the licensee to
                                              showing—requires more detailed                          sought by Motorola.                                   certify that no permanent
                                              information regarding a licensee’s                         10. Implementation of Renewal                      discontinuance of service or operation
                                              services or operations and related                      Standard. Many commenters express                     (as defined below as an unbroken failure
                                              matters for its entire license period.                  concern that the renewal framework                    to provide service or operate over a


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                                                               Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations                                                      41533

                                              specified period of days) occurred                      may be used by any site-based WRS                       the license term following the interim
                                              during the license term. The third                      license in the services listed in                       performance requirement (up until the
                                              certification requires the licensee to                  Appendix G of the Order.                                deadline for meeting the final
                                              certify that it has substantially complied                 15. Wireless Providers Using                         performance requirement), the licensee
                                              with all applicable FCC rules, policies,                Geographic Licenses. The Commission                     continues to use its facilities 2 to
                                              and the Act.                                            also finds that it would be in the public               provide at least the level of service or
                                                 13. Site-based Licenses. Consistent                  interest to adopt a safe harbor for WRS                 operation required by its interim
                                              with the Commission’s certification                     licensees that provide service to                       performance requirement,3 and (2) it has
                                              proposal in the WRS Reform NPRM for                     customers using geographic licenses.                    met its final performance requirement
                                              the renewal of site-based licensees, the                Many commenters urge the Commission                     and continues to use its facilities to
                                              Commission adopts a safe harbor for                     to adopt a streamlined certification                    provide at least the level of service
                                              site-based WRS licensees. With site-                    process for renewal of geographic                       required by its final performance
                                              based services, a licensee’s initial                    licenses like what the Commission                       requirement through the end of the
                                              application for authorization provides                  proposed for site-based licenses. Most                  license term. For a licensee in its initial
                                              the exact technical parameters of its                   recently, Verizon argues that a                         license term with no interim
                                              planned operations (such as transmitter                 straightforward renewal certification                   performance requirement, the licensee
                                              location, frequency, and power levels),                 ‘‘will obligate the licensee to verify that             must certify that it has met its final
                                              while the licensee’s subsequent                         it is complying with the terms of its                   performance requirement and continues
                                              notification, that it has completed                     authorization and Commission rules,                     to use its facilities to provide at least the
                                              construction, confirms that the facilities              including buildout, spectrum                            level of service required by its final
                                              have been constructed consistent with                   utilization, or other performance                       performance requirement through the
                                              its authorization (or with minor                        requirements.’’ Similarly, CTIA                         end of the license term.4 For a licensee
                                              modifications as may be permitted by                    maintains that a certification for                      in any subsequent license term, the
                                              the applicable service rules). A licensee               geographic license renewal ‘‘would                      licensee must certify that it continues to
                                              also may file to modify its license,                    require that licensees verify that they                 use its facilities to provide at least the
                                              which may lead to a modified                            have complied with all buildout,                        level of service required by its last
                                              authorization and the submission of a                   performance, and other rules—                           performance requirement through the
                                              subsequent construction notification.                   demonstrating that they are providing                   end of any subsequent license terms.
                                              Consequently, at the time a site-based                  service—without imposing unjustified                    Some commenters ask the Commission
                                              service provider files a renewal                        burdens.’’ Both Verizon and CTIA argue                  to recognize that there are
                                              application, it should be operating as                  that a certification is consistent with the             circumstances (e.g., network upgrades,
                                              licensed.                                               renewal standard adopted in the                         natural disasters, power outages, routine
                                                 14. A site-based WRS licensee will                   Spectrum Frontiers Order for the                        maintenance, temporary service
                                              meet the Commission’s renewal                           millimeter wave spectrum bands at 28                    outages) during which a licensee may
                                              standard if it can certify that it is                   GHz, 37 GHz, and 39 GHz. The                            need to ‘‘reduce overall coverage below
                                              continuing to operate consistent with                   Commission agrees that a certification,                 the level required by buildout
                                              the licensee’s most recently filed                      as part of a comprehensive safe harbor                  requirements, or briefly turn down
                                              construction notification (or most recent               for geographic licenses, will streamline                service . . . for a limited period.’’ CTIA
                                              authorization, when no construction                     its renewal processes, ensure                           maintains that ‘‘these events should not
                                              notification is required), and make the                 compliance with its rules, and provide                  disqualify a licensee from using the safe
                                              certifications regarding permanent                      clarity and certainty for WRS licensees.                harbor.’’ Thus, the Commission clarifies
                                              discontinuance and substantial                             16. Accordingly, the Commission                      that licensees who temporarily drop
                                              compliance with Commission rules and                    adopts a safe harbor for WRS providers                  below their construction benchmark for
                                              policies that are applicable to all                     using geographic licenses consistent                    fewer than 180 days may avail
                                              renewal applicants seeking to avail                     with the approach taken in the                          themselves of the safe harbor. In
                                              themselves of one of the renewal safe                   Spectrum Frontiers Order. A                             addition, the licensee must make the
                                              harbors. Consistent with the                            geographically-licensed WRS licensee                    certifications regarding permanent
                                              Commission’s treatment of wireless                      providing service to customers will                     discontinuance and substantial
                                              providers using geographic licenses as                  meet the renewal standard if it can make                compliance with Commission rules and
                                              discussed below, licensees who                          the following certifications. For a                     policies that are applicable to all
                                              temporarily reduce their operations for                 licensee in its initial license term 1 with             renewal applicants seeking to avail
                                              fewer than 180 days may avail                           an interim performance requirement,                     themselves of one of the renewal safe
                                              themselves of the safe harbor. The                      the licensee must certify that (1) it has               harbors. This safe harbor may be used
                                              Commission concludes that this safe                     met its interim performance
                                              harbor for site-based WRS licensees is in               requirement and that over the portion of                   2 The Commission determines that use of

                                              the public interest and will expedite the                                                                       facilities includes operations under any spectrum
                                              renewal process for licensees, ensure                      1 For performance showing requirements at the        leasing arrangement.
                                                                                                                                                                 3 The Commission notes that any licensee that
                                              spectrum is being used efficiently to                   end of the initial license term, there are two filing
                                                                                                      processes in ULS depending on the service of the        fails to meet its interim performance requirement
                                              provide service to the public or for                    license. For some services, licensees file a            will not be able to avail itself of this safe harbor
                                              private internal needs, and allow                       notification of construction (NT) and a separate        option at the end of the initial license term because
                                              Commission staff to concentrate scarce                  renewal application. For other services, licensees      it will be unable to certify that it has met its interim
                                                                                                      include their performance showing as an exhibit to      performance requirement.
                                              resources on renewal applications that
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                                                                                                      the renewal application and do not file a separate         4 The Commission recognizes that a licensee may
                                              warrant heightened scrutiny. Moreover,                  NT. Under either filing method, the licensee would      file a renewal application as early as 90 days prior
                                              applying the safe harbor process to site-               certify in its renewal application that it has          to license expiration. 47 CFR 1.949(a). The
                                              based services will ensure that renewed                 submitted a final performance showing in good           Commission notes that a licensee with a
                                              licenses in these services are being                    faith, but acceptance of its safe harbor renewal        performance requirement deadline coincident with
                                                                                                      certification is contingent on the Commission’s         its license expiration date must meet any applicable
                                              operated, and if they are not, the                      review and acceptance of the performance showing.       performance requirement before it can certify
                                              licensee must submit a renewal showing                  This is true as well for private systems using          compliance with the safe harbor requirements and
                                              as discussed below. This safe harbor                    geographic licenses.                                    file a renewal application.



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                                              41534            Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations

                                              by geographic licensees in the Wireless                 in any subsequent license term, the                   licensee will meet the renewal standard
                                              Radio Services listed in Appendix H of                  licensee must certify that it continues to            if it can satisfy the following safe
                                              the Order.                                              use its facilities to further the licensee’s          harbor. The licensee must certify that it
                                                 17. Private Systems Using Geographic                 private business or public interest/                  uses and continues to use its facilities
                                              Licenses. The Commission finds that the                 public safety needs at or above the level             either to provide service to the public or
                                              public interest will be served by                       required to meet its last performance                 to further the licensee’s private, internal
                                              adopting a separate safe harbor for                     requirement. Consistent with the                      business or public interest/public safety
                                              private systems using geographic                        treatment of wireless providers using                 needs. Thus, although the Commission
                                              licenses. In the WRS Reform NPRM, the                   geographic licenses as discussed above,               does not impose a specific performance
                                              Commission queried what factors                         licensees who temporarily drop below                  requirement for such licensees at
                                              should be considered during renewal of                  their construction benchmark for fewer                renewal of the current license term, in
                                              licenses used for a licensee’s private,                 than 180 days may avail themselves of                 order to avail itself of the streamlined
                                              internal communications needs.                          the safe harbor. In addition, the licensee            safe harbor renewal process for any
                                              Commenters generally object to                          must make the certifications regarding                subsequent license term, a licensee
                                              applying the WRS Reform NPRM’s                          permanent discontinuance and                          without a performance requirement
                                              proposed renewal framework to                           substantial compliance with                           must demonstrate some level of service
                                              geographic licensees that deploy                        Commission rules and policies that are                or operation over the subsequent license
                                              private, internal communications                        applicable to all renewal applicants                  term. In addition, the licensee must
                                              systems. Instead, numerous commenters                   seeking to avail themselves of one of the             make the certifications regarding
                                              urge the Commission to adopt a                          renewal safe harbors. This safe harbor                permanent discontinuance (as defined
                                              certification for such licensees. The                   may be used by geographic area                        below) and substantial compliance with
                                              Commission agrees that a certification,                 licensees in the Wireless Radio Services              Commission rules and policies that are
                                              as part of a comprehensive safe harbor                  listed in Appendix H of the Order.                    applicable to all renewal applicants
                                              for geographic licensees using their                       19. Partitioned or Disaggregated                   seeking to avail themselves of one of the
                                              licenses for private, internal purposes,                Licenses. As discussed in more detail                 renewal safe harbors. This safe harbor
                                              will streamline its renewal processes,                  below, the Commission’s rules permit                  may be used by any WRS licensee with
                                              ensure compliance with its rules, and                   parties to partitioning or disaggregation             a partitioned or disaggregated license
                                              provide clarity and certainty for such                  agreements to choose between two                      without an associated performance
                                              licensees.                                              options to determine how the parties                  requirement. Any licensee that cannot
                                                 18. Accordingly, the Commission                      will satisfy any relevant pending                     meet the requirements of the safe harbor
                                              adopts a safe harbor for WRS licensees                  performance requirement for the license               must submit a renewal showing as
                                              using their geographic licenses for                     after it has been divided by geographic               discussed below.
                                              private, internal systems. A                            partitioning or spectrum disaggregation                  21. The Commission recognizes that
                                              geographically licensed WRS licensee                    arrangements. In cases where the                      this safe harbor, unlike the others, does
                                              using its license for private, internal                 original licensee has satisfied the                   not prescribe a specific level of service
                                              purposes will meet the renewal                          applicable performance requirement                    or operation required for renewal. As
                                              standard if it can make the following                   prior to partitioning or disaggregating               the Commission has explained,
                                              certifications. For a licensee in its initial           the license, however, the recipient of                however, ‘‘[t]he goal of our construction
                                              license term with an interim                            the partitioned area or disaggregated                 requirements in both the partitioning
                                              performance requirement, the licensee                   spectrum has no performance                           and disaggregation contexts is to ensure
                                              must certify that (1) it has met its                    requirement associated with the                       that the spectrum is used to the same
                                              interim performance requirement and                     partitioned or disaggregated portion.                 degree that would have been required
                                              that over the portion of the license term               This lack of a performance requirement                had the partitioning or disaggregation
                                              following the interim performance                       is relevant in the renewal context                    transaction not taken place.’’ In the
                                              requirement (up until the deadline for                  because, while the partitioner or                     scenario addressed here, the partitioner
                                              meeting the final performance                           disaggregator may be able to meet a safe              or disaggregator has already met the
                                              requirement), the licensee continues to                 harbor (to demonstrate that over the                  associated performance requirement for
                                              use its facilities to further the licensee’s            course of its license term, the licensee              the license; any additional construction
                                              private, internal business or public                    provided and continues to provide                     undertaken by the partitionee or
                                              interest/public safety needs at or above                service to the public, or operated and                disaggregatee exceeds the relevant
                                              the level required to meet its interim                  continues to operate the license to meet              performance benchmark for the original
                                              performance requirement, and (2) it has                 the licensee’s private, internal                      license and thus does not contravene
                                              met its final performance requirement                   communications needs), the partitionee                the goal of the Commission’s
                                              and continues to use its facilities to                  or disaggregatee will not be able to avail            construction requirement in the
                                              further the licensee’s private business or              itself of the safe harbors as adopted                 partitioning and disaggregation context.
                                              public interest/public safety needs at or               above because it cannot certify                       However, the Commission contemplates
                                              above the level required by its final                   continuing service or operation                       taking action if it appears that parties to
                                              performance requirement through the                     consistent with its final performance                 a partitioning or disaggregation are
                                              end of the license term. For a licensee                 requirement because it has none.                      attempting to abuse its rules.
                                              in its initial license term with no                     Accordingly, the safe harbor approach                    22. Renewal Showing. The
                                              interim performance requirement, the                    must be adjusted to provide the                       Commission seeks to provide licensees
                                              licensee must certify that it has met its               partitionee or disagregatee with a                    with certainty and clarity regarding the
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                                              final performance requirement and                       mechanism for demonstrating                           renewal process, and thus have adopted
                                              continues to use its facilities to further              compliance with the renewal standard.                 four safe harbors to provide licensees
                                              the licensee’s private business or public                  20. To this end, the Commission                    with a streamlined mechanism for
                                              interest/public safety needs at or above                adopts an approach that applies to WRS                meeting the renewal standard. The
                                              the level required by its final                         licensees with partitioned or                         Commission expects that most licensees
                                              performance requirement through the                     disaggregated licenses when there is no               will be able to avail themselves of its
                                              end of the license term. For a licensee                 performance requirement. Such a                       streamlined safe harbor process and


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                                                               Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations                                        41535

                                              receive timely renewal grants. In the                   associated with a licensee’s level of                 subscribers, the services offered; for
                                              event a licensee is unable to meet the                  service to the public.                                operation—the number of users (if
                                              requirements of any of the enumerated                      25. Many commenters object to the                  applicable), the operating area, the type
                                              safe harbors, however, it must file a                   adoption of this renewal showing for all              of operation);
                                              ‘‘renewal showing’’ to demonstrate how                  WRS licensees. These commenters argue                    (2) the date service/operation
                                              it meets the renewal standard the                       that the proposed renewal showing is                  commenced, whether service/operation
                                              Commission adopts in this Order.                        complex and would impose substantial                  was ever interrupted, and the duration
                                              Examples of licensees that will not be                  costs and burdens on licensees. Other                 of any interruption or outage;
                                              able to meet a safe harbor, but for whom                commenters assert that the proposed                      (3) the extent to which service/
                                              there nonetheless may be legitimate                     renewal process is unclear and creates                operation is provided to/in rural areas;
                                              bases that warrant renewal, include a                   uncertainty for licensees. Still other                   (4) the extent to which service/
                                              licensee that no longer provides service                commenters maintain that the proposed                 operation is provided to/in tribal lands;
                                              or no longer operates at the level                      process requests information already in               and
                                              required to meet its final performance                  the Commission’s possession, requests                    (5) any other factors associated with a
                                              requirement, or a licensee that has                     detailed information that licensees do                licensee’s level of service to the public/
                                              modified its service or operations since                not maintain, and may require                         level of operation.
                                                                                                      disclosure of competitively sensitive                    27. Each of the factors listed above to
                                              its final performance requirement to
                                                                                                      information. The Commission                           be considered in a renewal showing
                                              offer novel services or employ a unique
                                                                                                      acknowledges commenters’ many                         directly relates to the renewal standard
                                              system architecture. These scenarios
                                                                                                      concerns regarding a general                          the Commission adopts today—service
                                              warrant additional scrutiny before the                                                                        or operation over the license term. The
                                              Commission can determine whether                        requirement that all WRS licensees
                                                                                                      submit detailed renewal showings and                  Commission will consider the totality of
                                              license renewal is in the public interest.                                                                    all the factors on a case-by-case basis to
                                              The Commission reiterates that it will                  have concluded that, in many cases,
                                                                                                      streamlined applications containing the               determine if a licensee has
                                              not require renewal applicants to file a                                                                      demonstrated over the course of its
                                              renewal showing if they can meet the                    required certifications for safe harbor
                                                                                                      treatment will be sufficient to ensure                license term that it has provided and
                                              renewal standard via a safe harbor.                                                                           continues to provide service to the
                                                 23. In the WRS Reform NPRM, the                      that the Commission renews licenses in
                                                                                                      the public interest, consistent with the              public, or has operated and continues to
                                              Commission proposed to require all                                                                            operate under the license to meet the
                                                                                                      Act. The Commission emphasizes that
                                              renewal applicants to meet its renewal                                                                        licensee’s private, internal
                                                                                                      licensees that can take advantage of one
                                              standard by filing a detailed renewal                                                                         communications needs.
                                                                                                      of the ‘‘safe harbor’’ renewal
                                              showing to demonstrate that they are                                                                             28. In the WRS Reform NPRM, the
                                                                                                      applications described above will not be
                                              providing service to the public (or,                                                                          Commission also asked whether a
                                                                                                      required to submit a renewal showing as
                                              when allowed under the relevant                                                                               variety of other factors should be
                                                                                                      part of their renewal applications.
                                              service rules or pursuant to waiver,                                                                          incorporated into the renewal rules.
                                                                                                      Rather, only licensees that cannot
                                              using the spectrum for private, internal                                                                      Many commenters object to the
                                                                                                      satisfy one of the enumerated safe
                                              communication), and substantially                                                                             collection of additional data in support
                                                                                                      harbors will be required to file a
                                              complying with the Commission’s rules                                                                         of a renewal showing. On balance, the
                                                                                                      detailed renewal showing. To fulfill the
                                              (including any applicable performance                   Commission’s statutory mandate to                     Commission agrees that the costs of
                                              requirements) and policies and the Act.                 ensure efficient spectrum use consistent              requesting additional information
                                              The Commission now turns toward a                       with the public interest, where a                     beyond the renewal showing as adopted
                                              consideration of this proposed standard                 licensee does not satisfy one of the                  would outweigh the benefits of such
                                              for cases in which a renewal applicant                  streamlined processes, the Commission                 additional information. The
                                              does not meet one of the safe harbors                   must undertake a closer examination of                Commission thus decides not to add
                                              adopted herein.                                         a licensee’s record of service or                     further factors at this time to the
                                                 24. The renewal showing proposed in                  operation over its license term.                      renewal showing requirements. The
                                              the WRS Reform NPRM followed the                        Consistent with the Commission’s                      Commission finds that its renewal
                                              paradigm adopted in the 700 MHz                         conclusions in the AWS–4, H Block,                    framework strikes an appropriate
                                              Report and Order. After the release of                  AWS–3, and 600 MHz proceedings, the                   balance between the need for
                                              the WRS Reform NPRM, the                                Commission finds that the renewal                     information to fully evaluate renewal
                                              Commission has adopted the 700 MHz                      showing it adopts today, applied in the               applications that cannot meet the safe
                                              Commercial Services renewal paradigm                    limited circumstances described herein,               harbors and minimizing burdens on
                                              in four additional services—AWS–4, H                    is in the public interest and its benefits            licensees.
                                              Block, AWS–3, and 600 MHz.                              outweigh any likely costs.                               29. The Commission disagrees with
                                              Specifically, the Commission proposed                      26. Accordingly, licensees that cannot             commenters that argue that the option of
                                              to consider the following factors when                  satisfy the renewal standard under one                filing a full renewal showing would be
                                              evaluating whether a renewal showing                    of the enumerated safe harbors can                    contrary to the Commission’s original
                                              met the renewal standard: (1) The level                 nonetheless meet the renewal standard                 proposal for site-based services. Under
                                              and quality of service provided by the                  by demonstrating that they are                        the Commission’s prior proposal, if a
                                              applicant (e.g., the population served,                 providing service to the public (or,                  site-based licensee could not make the
                                              the area served, the number of                          when allowed under the relevant                       requisite certification, the renewal
                                              subscribers, the services offered); (2) the             service rules or pursuant to waiver,                  application could not be granted and the
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                                              date service commenced, whether                         using the spectrum for private, internal              spectrum would be returned to the
                                              service was ever interrupted, and the                   communication), using the following                   Commission. Under the renewal
                                              duration of any interruption or outage;                 renewal showing, as applicable:                       framework the Commission adopts
                                              (3) the extent to which service is                         (1) The level and quality of service/              today, if a site-based licensee cannot
                                              provided to rural areas; (4) the extent to              operation provided by the applicant                   meet the requirements of the safe
                                              which service is provided to tribal                     (e.g., for service—the population served,             harbor, it may choose to file a renewal
                                              lands; and (5) any other factors                        the area served, the number of                        showing to explain why it should


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                                              41536            Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations

                                              nonetheless retain its license, thus                    for them to undertake a compliance                    Applications filed prior to the effective
                                              providing additional flexibility to such                review necessary to make the required                 date of the new rules will be processed
                                              a licensee.                                             certification regarding operation.                    under the rules in effect when they are
                                                 30. Implementation Timeline. The                     Existing service-specific renewal rules               filed.
                                              renewal framework represents, for some                  will remain in effect until the renewal                  33. Geographic and Site-based
                                              WRS licenses, a significant change in                   rules adopted herein become effective.                Licensed Services—Other Requirements.
                                              how the Commission will evaluate and                    Applications filed prior to the effective             Consistent with the Commission’s
                                              process renewal applications going                      date of the new rules will be processed               proposal in the WRS Reform NPRM, the
                                              forward.5 For licensees that already                    under the rules in effect when they are               Commission applies a single regulatory
                                              meet the renewal standard, the unified                  filed.                                                compliance demonstration requirement
                                              renewal paradigm presents a                                32. Geographic-area Licenses. Given                to all renewal applicants, whether
                                              streamlined process using safe harbors                  the inconsistency of the Commission’s                 licensed by geographic area or by site.
                                              with minimal filing burdens and                         renewal rules across wireless services,               In addition, the Commission prohibits
                                              certain, timely renewal processing. The                 the Commission has seen markedly                      the filing of competing applications
                                              Commission recognizes, however, that                    different renewal submissions by                      against such renewal applications.
                                              other licensees will need time to come                  licensees describing the level of service             Further, if a renewal application cannot
                                              into compliance with the renewal                        or operation in the various specific                  be granted, the associated spectrum
                                              standard. Accordingly, the Commission                   services within the WRS. Some                         generally will be returned to the
                                              adopts an implementation schedule that                                                                        Commission for re-licensing under the
                                                                                                      licensees have submitted renewal
                                              will make the benefits of the renewal                                                                         applicable processes.
                                                                                                      applications clearly demonstrating
                                              framework available immediately for                                                                              34. Regulatory Compliance
                                                                                                      service or operation over the entire                  Demonstration. In the 700 MHz First
                                              those licensees most likely able to avail               license term, which would meet the
                                              themselves of the streamlined processes,                                                                      Report and Order, the Commission
                                                                                                      renewal standard the Commission                       stated that, as part of their renewal
                                              but provide ample time for those                        adopts today. Others have filed
                                              licensees that may need to come into                                                                          filing, renewal applicants must
                                                                                                      applications that demonstrate service or              demonstrate ‘‘that they have
                                              compliance with the new rules. In all                   operation over significantly less than
                                              instances, compliance with the renewal                                                                        substantially complied with all
                                                                                                      the entire license term, which would                  applicable Commission rules, policies,
                                              standard, via either a safe harbor or                   not meet the Commission’s new renewal
                                              renewal showing, will be assessed from                                                                        and the Communications Act of 1934, as
                                                                                                      standard contemplating ongoing service                amended, including any applicable
                                              the effective date of the new rules. Thus,              or operation during the license term.
                                              for example, the requirement to provide                                                                       performance requirements.’’ As the
                                                                                                      The Commission seeks to provide                       Commission stated in the WRS Reform
                                              continuous service/operation does not                   sufficient time to geographic-area
                                              cover periods before the effective date of                                                                    NPRM, such a regulatory compliance
                                                                                                      licensees that have yet to be subject to              demonstration serves the public interest
                                              those rules. Nor does a licensee seeking                the renewal standard so that they can
                                              safe harbor treatment need to certify that                                                                    by facilitating the Commission’s
                                                                                                      comply with the new standard (indeed,                 evaluation of the character and other
                                              it met the necessary criteria during time               some licensees are not yet required to
                                              periods prior to the effective date.                                                                          qualifications of a renewal applicant.
                                                                                                      even demonstrate service over the                        35. To aid in this evaluation, the
                                                 31. Site-based Licenses. For site-based              license term). The Commission                         Commission proposed a detailed
                                              licensees, the new renewal paradigm is                  determines that the renewal standard                  submission of documents regarding
                                              akin to their existing renewal                          and the renewal framework will take                   compliance by the licensee and certain
                                              requirements. As discussed above, at the                effect for such licensees on January 1,               defined affiliates. Industry commenters
                                              time a site-based service provider files                2023, replacing the existing service-                 uniformly opposed adoption of the
                                              a renewal application, it should be                     specific renewal rules, giving licensees              proposed regulatory compliance
                                              operating as licensed. Thus, current                    at least five years to comply with the                demonstration as a prerequisite to
                                              renewal requirements for site-based                     new renewal rules (giving all licensees               renewal on the basis that it is onerous
                                              licensees are much like the safe harbor                 sufficient time to show service over the              and unduly burdensome and could
                                              the Commission adopts for such                          license term, starting from the effective             impose significant costs, particularly on
                                              licensees. The Commission finds that                    date of the new renewal rules). Existing              rural and regional carriers.
                                              the renewal standard and renewal                        service-specific renewal rules will cease                36. The Commission has a statutory
                                              processes (whether streamlined or                       to be effective as of January 1, 2023. The            duty to ensure that licensees
                                              entailing an evaluation of the licensee’s               Commission notes, however, that                       substantially comply with all applicable
                                              full renewal showing) should be made                    licensees in the 700 MHz, AWS–4, H                    Commission rules and policies and the
                                              available to site-based licensees as soon               Block, AWS–3, and 600 MHz services                    Act. At the same time, where possible
                                              as possible and thus determines that                    already are subject to the renewal                    and practicable, the Commission seeks
                                              such rules will be applied to those                     standard that it adopts today for all                 to streamline the existing renewal
                                              licensees without a transition period,                  WRS geographic licenses. Accordingly,                 application processes and minimize
                                              with one exception, effective upon their                the Commission concludes that these                   filing burdens on licensees. In lieu of
                                              applicable effective dates. For                         licensees should be able to avail                     the regulatory compliance
                                              microwave licenses in the Common                        themselves of the safe harbors and                    demonstration proposed in the WRS
                                              Carrier Fixed Point-to-Point Microwave                  associated streamlined procedures prior               Reform NPRM, the Commission
                                              Service, licensees will not be required to              to January 1, 2023. Thus, for licensees               concludes that it can perform its duties
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                                              comply with the revised renewal rules                   in the 700 MHz, AWS–4, H Block,                       and further its public interest goals
                                              for site-based licenses until October 1,                AWS–3, and 600 MHz services, the safe                 effectively by requiring a renewal
                                              2018, in order to provide sufficient time               harbor rules will apply immediately                   applicant to certify that it has
                                                5 Because substantial compliance with applicable
                                                                                                      upon their effective dates. Existing                  substantially complied with all
                                              FCC rules and policies and the Act is an ongoing
                                                                                                      service-specific renewal rules will                   applicable FCC rules, policies, and the
                                              obligation of licensees, this will be assessed over     remain in effect until the renewal rules              Act. If a particular renewal applicant is
                                              the entire term of the license at renewal.              adopted herein become effective.                      unable to make the substantial


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                                                               Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations                                        41537

                                              compliance certification, it will need to               adopts today, however, will provide it                Radio Services licenses that have no
                                              provide an explanation of the                           with ample information to determine                   construction obligations, including
                                              circumstances preventing such a                         whether a particular license renewal is               services where operations are licensed
                                              certification and why renewal of the                    in the public interest. Some commenters               by rule (and thus there is no individual
                                              subject license should still be granted.                also argue that competing applications                ‘‘license’’ to renew) or to Wireless Radio
                                                 37. Elimination of Comparative                       are rare, but this only strengthens the               Services that can be considered to
                                              Renewal Rules for WRS. As proposed in                   rationale to eliminate the outdated                   involve a ‘‘personal’’ license. These
                                              the WRS Reform NPRM and consistent                      rules. The Commission finds that the                  services are listed in Appendix I of the
                                              with the action the Commission took in                  best course is to remove the comparative              Order.
                                              the WRS Reform First Report and Order                   renewal rules and harmonize the
                                              in this proceeding adopted in tandem                                                                          B. Permanent Discontinuance of
                                                                                                      approach across spectrum bands—many
                                              with the Cellular Reform Second Report                                                                        Operations for Wireless Radio Services
                                                                                                      of which, as discussed above, already
                                              and Order on March 23, 2017 (WT                         prohibit the filing of competing                         45. All WRS licensees are currently
                                              Docket No. 12–40), and in several other                 applications. In the event that an entity             subject to the Part 1 rule governing
                                              proceedings over the last decade, the                   lacks standing to file a petition to deny             permanent discontinuance, which
                                              Commission prohibits the filing of                      a WRS license renewal application, it                 provides that an authorization
                                              competing applications for all WRS and                  may still bring relevant facts to the                 automatically terminates, without
                                              eliminates the remaining comparative                    attention of the Commission by means                  specific Commission action, if service is
                                              renewal procedures and requirements                     of an informal filing.                                ‘‘permanently discontinued.’’ To
                                              across various rule parts.                                 41. If a license is not renewed, the               promote service continuity, the
                                                 38. The WRS Reform NPRM proposed                     associated spectrum will be returned to               Commission replaces disparate service-
                                              to prohibit the filing of competing                     the Commission as discussed below,                    specific rules dealing with permanent
                                              renewal applications for all WRS as part                allowing parties that may have been                   discontinuance with a standardized rule
                                              of its proposed uniform WRS renewal                     inclined to file a competing application              for all WRS licensees. This rule will
                                              process. The majority of commenters                     to participate in the auction of spectrum             work in concert with construction and
                                              support the Commission’s proposal to                    recovered from geographic licensees or                renewal obligations to ensure that
                                              eliminate service-specific rules                        apply for spectrum recovered from a                   licensees provide service in a timely
                                              regarding the filing of competing                       Cellular or site-based licensee.                      manner, continue to provide service
                                              applications and the use of comparative                    42. Return of Spectrum to                          over the term of the license, and do not
                                              hearings to resolve them. A number of                   Commission if Renewal Application Is                  discontinue service for such an
                                              commenters maintain that the                            Denied. Consistent with the                           extended period of time that it should
                                              comparative renewal process is an                       Commission’s proposals in the WRS                     be deemed permanent.
                                              outdated vestige of licensing rules                     Reform NPRM, the Commission                              46. Current service-specific rules do
                                              predating the Commission’s current                      concludes that, if a WRS licensee cannot              not clearly and consistently define
                                              reliance on auctions in many services.                  meet the renewal standard and its                     permanent discontinuance resulting in
                                                 39. The Commission deletes the                       license cannot be renewed, its licensed               license termination, with a few services
                                              remaining service-specific comparative                  spectrum will be returned automatically               defining the term and many services
                                              renewal rules and prohibits the filing of               to the Commission. For site-based                     completely lacking any definition. Thus,
                                              competing renewal applications for all                  licenses, the Commission will continue                after meeting any service-specific
                                              WRS. This approach is consistent with                   to apply the policy of having spectrum                construction and renewal requirements,
                                              the Commission’s determinations in                      revert to a geographic area licensee, if              some licensees in a service whose rules
                                              many other commercial wireless service                  applicable, if an underlying site-based               provide no definition of ‘‘permanent’’
                                              proceedings over the last ten years—                    authorization is not renewed.                         discontinuance might conclude that
                                              including those for the AWS–3 and                          43. One overarching goal in this                   they are permitted to discontinue
                                              AWS–4 Bands, the H Block, the 600                       proceeding is to ensure that valued                   service for long periods of time, and that
                                              MHz Band, and the 700 MHz                               spectrum resources are rapidly put to                 such suspension of service would not
                                              Commercial Services Band—and with                       their highest and best use. A second                  trigger automatic license termination. In
                                              the elimination of comparative renewal                  goal in this proceeding is to provide                 contrast, other licensees/competitors in
                                              rules applicable to the Cellular Service.               licensees with certainty and clarity                  a service whose rules define
                                              The same logic that the Commission                      regarding the rules that apply to them                ‘‘permanent’’ discontinuance as specific
                                              used in exempting those bands from                      and the consequences for failing to meet              amount of time during which operations
                                              comparative renewal applications                        those rules. The Commission’s existing                were suspended (e.g., 90 days) would be
                                              likewise applies to the remaining WRS                   spectrum reversion rule employed today                subject to automatic license termination
                                              bands. The Commission previously                        serves these dual goals. If a licensee                if they discontinued service to
                                              found, and commenters agree here, that                  cannot meet the renewal standard (via                 subscribers for that specified length of
                                              the public interest is not served by the                safe harbor or renewal showing) or it                 time. As the Commission noted in the
                                              filing of time-consuming and costly                     has permanently discontinued service,                 WRS Reform NPRM, the public interest
                                              competing applications, and a                           or its regulatory compliance                          is not served by such marked regulatory
                                              prohibition on competing applications                   certification is insufficient, its renewal            disparities. The Commission
                                              will ‘‘protect[] the public interest                    application cannot be granted, and its                accordingly proposed to adopt a
                                              without creating incentives for                         licensed spectrum will return                         uniform discontinuance of service rule
                                              speculators to file ‘strike’ applications.’’            automatically to the Commission.                      for Parts 22, 24, 27, 80, 90, 95, and 101
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                                                 40. The few commenters that support                     44. Wireless Radio Services Excluded               Wireless Radio Services. The
                                              retention of the comparative renewal                    from Rulemaking. The Commission                       Commission finds that the adoption of
                                              application rules argue that, without the               concludes that certain Wireless Radio                 a uniform regulatory framework
                                              ability to file competing applications,                 Services should be excluded from the                  governing the permanent
                                              there is no way to discover disqualifying               new renewal requirements. Specifically,               discontinuance of operations for
                                              facts about incumbent licensees. The                    the Commission will not apply the                     Wireless Radio Services will serve the
                                              renewal requirements the Commission                     revised renewal paradigm to Wireless                  public interest by: (1) Affording


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                                              41538            Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations

                                              similarly situated licensees and like                   affording licensees operational                       provide service to unaffiliated
                                              services comparable regulatory                          flexibility and ensuring that licensed                subscribers. For such private, internal
                                              treatment; (2) providing licensees and                  spectrum is efficiently utilized. The                 communications, the Commission
                                              other interested parties clarity and                    Commission disagrees with those                       defines ‘‘permanent discontinuance’’ as
                                              certainty to facilitate business and                    commenters that oppose the adoption of                a period of 180 or 365 consecutive days
                                              network planning; and (3) ensuring that                 any permanent discontinuance rules.                   (for geographic and site-based licenses
                                              valuable spectrum is not underutilized.                 Allowing licensees unfettered discretion              respectively) during which the licensee
                                              The rules the Commission adopts today                   to determine how long scarce spectrum                 does not operate.
                                              strike the appropriate balance between                  resources lie fallow after meeting                       53. The Commission concludes that
                                              providing licensees with operational                    relevant construction requirements                    different rules for geographic versus
                                              flexibility and ensuring spectrum is not                would be inconsistent with the intent of              site-based licenses are warranted by
                                              warehoused and does not lie fallow.                     those requirements and would directly                 their differing operational
                                                 47. Most but not all commenters                      contradict the Commission’s statutory                 characteristics. Under a geographic
                                              support a uniform regulatory framework                  obligation to ‘‘prevent stockpiling or                license, a licensee constructs and
                                              governing permanent discontinuance.                     warehousing of spectrum by licensees or               operates its entire network in the market
                                              Commenters disagree, however, on the                    permittees.’’                                         under the umbrella of its geographic
                                              appropriate discontinuance period to be                    51. The Commission replaces the                    license. As MetroPCS explains, wireless
                                              applied to the various Wireless Radio                   existing hodgepodge of discontinuance                 carriers constantly discontinue
                                              Services, with some commenters                          rules with a unified regulatory                       individual sites or channels as they
                                              supporting the Commission’s proposed                    framework that ensures regulatory                     reconfigure their networks to increase
                                              time periods while other commenters                     parity across services and license types              and adjust capacity. The Commission’s
                                              seek a 365-day discontinuance period                    and applies the rules on a per-license                goal in this proceeding is not to hamper
                                              for all WRS licensees.                                  basis. Under the new rules for all                    a licensee’s normal network design and
                                                 48. Commenters are generally                         geographically licensed radio services,               reconfiguration processes. Licensees
                                              supportive of the Commission’s                          permanent discontinuance of service for               should continue to have the necessary
                                              proposal to apply the permanent                         a given license will be defined as 180                flexibility to add or remove network
                                              discontinuance rule commencing on the                   consecutive days during which a                       facilities consistent with their business
                                              date a licensee makes its initial                       licensee does not operate or, in the case             strategies and network planning
                                              construction showing or notification.                   of WRS licensees providing service to                 processes. Thus, for geographic
                                              Some commenters, however, ask that                      customers, does not provide service to                licensees, the period of discontinuance
                                              the Commission commence the                             at least one subscriber that is not                   will not start for a given license until all
                                              permanent discontinuance period on                      affiliated with, controlled by, or related            network facilities operated under that
                                              the date of a licensee’s construction                   to the providing carrier. The                         license within the licensed area are
                                              deadline, while Sprint suggests that the                Commission adopted an identical                       discontinued.
                                              Commission use a licensee’s final                       framework for AWS–4, H Block, AWS–                       54. By contrast, site-based licensees
                                              construction deadline date.                             3, and 600 MHz, which are all licensed                do not have the same flexibility as
                                                 49. Section 101.305 of the rules states              on a geographic basis. In addition, for               geographic licensees to decommission
                                              that common carrier licensees in certain                all radio services licensed by site,                  individual facilities. Site-based
                                              services must notify the Commission of                  permanent discontinuance of service for               licensees are authorized to transmit
                                              involuntary discontinuance, reduction,                  a given license will be defined as 365                from a particular location or over a
                                              or impairment of service within 48                      consecutive days during which a                       particular path and have little flexibility
                                              hours, and that voluntary                               licensee does not operate or, in the case             to alter these parameters; ceasing
                                              discontinuance by a common carrier                      of WRS licensees providing service to                 operation on a frequency or band
                                              licensee in the identified services must                customers, does not provide service to                constitutes a total cessation of all
                                              occur only with prior Commission                        at least one subscriber that is not                   service or operation under the site-based
                                              approval, under the procedures of part                  affiliated with, controlled by, or related            license and, unless otherwise provided,
                                              63 of the Commission’s rules. AT&T                      to the providing carrier. A licensee’s                would therefore start the clock for
                                              asks that the Commission take this                      authorization will automatically                      measuring the length of discontinued
                                              opportunity to delete § 101.305, arguing                terminate, without specific Commission                service/operations on that licensed
                                              that it is both obsolete and duplicative                action, if it permanently discontinues                frequency/band at that location/path.
                                              of other rules, specifically § 101.65 and               service.                                              Thus, to provide site-based licensees
                                              that the rule’s concern for protecting                     52. The rules distinguish between                  with the necessary flexibility to repair,
                                              ‘‘communities’’ is misplaced.                           wireless providers providing service to               modify, or upgrade their sites without
                                                 50. After reviewing the extensive                    subscribers and private licensee                      fear of triggering a discontinuance
                                              record in this proceeding, the                          operation. In accordance with the                     period that could lead to the automatic
                                              Commission finds that the public                        Commission’s proposal, for wireless                   termination of their license, the
                                              interest will be best served by adopting                providers, the Commission defines                     Commission finds that site-based
                                              a uniform regulatory framework                          ‘‘permanently discontinued’’ as a period              licensees should be afforded a 365-day
                                              governing service continuity. The                       of 180 or 365 consecutive days (for                   discontinuance period.
                                              Commission therefore adopts new                         geographic and site-based licenses,                      55. The Commission does not find
                                              § 1.953 as it appears in Appendix A of                  respectively) during which the licensee               that geographic licensees need a 365-
                                              the Order and deletes multiple rule                     does not provide service to at least one              day discontinuance period to
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                                              sections governing permanent                            subscriber that is not affiliated with,               adequately conduct technology
                                              discontinuance in specific Wireless                     controlled by, or related to, the                     upgrades and to avoid unfairly
                                              Radio Services. As recognized by the                    provider. The Commission adopts a                     penalizing licensees that operate in
                                              Commission in four other proceedings                    different approach for wireless licensees             remote or highly seasonal areas of the
                                              and by commenters in this proceeding,                   that use their licenses for private,                  country that may be uninhabited for
                                              the approach the Commission adopts                      internal communications, however,                     more than half the year. Given the
                                              strikes an appropriate balance between                  because such licensees generally do not               flexibility geographic licensees have to


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                                                               Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations                                         41539

                                              turn off individual facilities in their                 does not have a construction deadline.                the permanent discontinuance rules
                                              licensed area so long as at least one                   Under the new renewal standard these                  until after a licensee’s final construction
                                              facility continues to operate or                        licenses must be operating by the end of              date, a licensee would be permitted to
                                              continues to serve at least one non-                    the next full renewal term after their                initiate service at its interim date and
                                              affiliated subscriber, the Commission                   current license term to warrant renewal.              then shut down all operations until the
                                              finds that 180 days provides licensees                  As such, the discontinuance rules will                final construction deadline. This result
                                              with ample time to effectuate network                   apply to these partitioned/disaggregated              is contrary to the Commission’s goal of
                                              modifications without triggering a                      licenses at that date. This approach                  promoting robust spectrum use.
                                              discontinuance period. Adoption of a                    provides consistent treatment in that                 However, for some services a failure to
                                              180-day discontinuance period                           licensees need only be concerned about                meet an interim construction date
                                              substantially increases the amount of                   permanent discontinuance after they are               results in acceleration of the final
                                              time licensees can discontinue                          required to be operating (whether at                  construction date and, in some cases,
                                              operations in some services. However,                   their next construction deadline or                   the license expiration date. For these
                                              the Commission decreases the                            renewal). The Commission adopted the                  services, if a licensee fails to meet the
                                              discontinuance period from one year to                  same approach for AWS–4, H Block,                     interim construction date, the
                                              180 days in certain services, for                       AWS–3, and 600 MHz.                                   discontinuance rule will apply after the
                                              example, certain Part 101 geographic                       58. In services where the                          licensee’s accelerated final construction
                                              licenses and 220–222 MHz geographic                     Commission’s rules currently contain no               date.
                                              licenses (listed in Appendix F of the                   definition of permanent discontinuance,                  60. The Commission exclude EBS
                                              Order). Given the operational flexibility               some licensees may have met their                     from application of the new permanent
                                              afforded geographic area licensees                      interim construction deadline, but have               discontinuance rule because this service
                                              discussed above, the Commission                         yet to reach their final construction                 presents unique issues that are under
                                              concludes that this reduction will not                  deadline and may have discontinued                    consideration in a separate proceeding.
                                              create undue burdens on such licensees.                 operations as part of a business strategy             The Commission finds that it should
                                              Moreover, in the event additional time                  or network plan. Absent a definition of               consider EBS permanent discontinuance
                                              is needed, as discussed below, the rules                permanent discontinuance, these                       policies in the context of the
                                              will provide for an automatic 30-day                    licensees might have concluded that                   comprehensive EBS rulemaking. For the
                                              extension or licensees can file for a                   they could discontinue service for a                  reasons stated above in the discussion of
                                              waiver under § 1.925 of the                             long period without fear of automatic                 the renewal policy rules, the
                                              Commission’s rules if additional time is                license termination. While all covered                Commission finds that BRS licenses and
                                              warranted.                                              WRS licensees must comply with the                    the Motorola-held partitioned and/or
                                                 56. The Commission agrees with                       permanent discontinuance rules going                  disaggregated Part 80 VHF Public Coast
                                              commenters who propose that the                         forward, it is equitable to provide                   licenses should be subject to the rules
                                              discontinuance rule should begin to                     certain existing licensees with                       and policies adopted herein regarding
                                              apply on the date a licensee must meet                  additional time to come into compliance               permanent discontinuance.
                                              its first performance requirement                       with the rules, if necessary. Thus, in all               61. Section 101.305 contains a
                                              benchmark, i.e., the construction                       services that do not currently have an                number of requirements related to
                                              deadline. Using the construction                        explicit definition of permanent                      discontinuance, reduction, or
                                              deadline, versus the date a licensee                    discontinuance, (e.g., Part 24 Personal               impairment of services for some or all
                                              actually makes its construction                         Communications Services, certain Part                 Part 101 services. The bulk of these
                                              notification, will ‘‘avoid unduly                       27 Miscellaneous Wireless                             provisions relate to involuntary and
                                              punishing early adopters who are                        Communications Services, Part 80                      voluntary discontinuance, reduction, or
                                              experimenting with certain business                     Safety and Special Radio Services, and                impairment of public communications
                                              models or technologies, and who later                   Part 95 218–219 MHz Service) licensees                services and required filings to be made
                                              deploy a different technology.’’ If a                   will be given until January 1, 2019 to                with the Commission. In particular,
                                              licensee files its notification prior to the            come into compliance with the rules                   § 101.305(b) requires that covered
                                              required construction deadline, the                     adopted today regarding permanent                     licensees subject to Title II of the Act
                                              licensee should have the flexibility to                 discontinuance. If a licensee in these                must obtain prior approval from the
                                              alter its network as it sees fit, including             services is not providing service or is               Commission pursuant to the procedures
                                              turning down the entire system to                       not operational on January 1, 2019, the               set forth in part 63 of the Commission’s
                                              accommodate changes in business plans                   discontinuance period would start on                  rules before they may voluntarily
                                              or network design. If the Commission                    that date. After that date, a WRS                     discontinue, reduce, or impair public
                                              were to apply the rule immediately                      licensee’s authorization will                         communications services to a
                                              upon the filing of a licensee’s                         automatically terminate, without                      community or part of a community.
                                              construction showing or notification, it                specific Commission action, if service is             Because § 101.305 implicates the
                                              would create a disincentive for licensees               permanently discontinued as defined                   provision of service pursuant to Title II
                                              to deploy their networks prior to their                 under the newly adopted rules.                        of the Act and given the limited record
                                              construction deadline. Such a result                       59. The Commission declines to adopt               addressing this rule, the Commission
                                              would be contrary to the Commission’s                   Sprint’s request to apply the permanent               makes no changes to this rule section at
                                              goal of rapid spectrum deployment.                      discontinuance rules only after a                     this time.
                                                 57. In most cases, the first                         licensee’s final construction date. The                  62. Notification of permanent
                                              performance requirement benchmark is                    permanent discontinuance rules are                    discontinuance. The Commission
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                                              the interim or final construction                       designed to ensure that once a licensee               adopts the proposed filing requirement
                                              deadline for geographic licenses, or the                is required to begin operations or                    that a licensee that permanently
                                              12-month construction deadline for site-                provide service to the public by, e.g., an            discontinues service must notify the
                                              based licenses. In a few cases, licensees               interim construction date, it continues               Commission of the discontinuance
                                              have partitioned and/or disaggregated                   to do so thereafter without substantial               within 10 days by filing FCC Form 601
                                              their licenses under current rules, and                 breaks in operation or service. If the                or 605 requesting license cancellation.
                                              one or more of the resulting licenses                   Commission generally does not apply                   Such a self-reporting requirement will


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                                              41540            Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations

                                              facilitate timely and accurate                          Including roaming within the definition               C. Geographic Partitioning and
                                              recordkeeping of the Commission                         of service serves the underlying goal of              Spectrum Disaggregation Rules and
                                              license and spectrum inventory.                         the Commission’s rules to ensure that                 Policies
                                              However, even if a licensee fails to file               licensees are actively using their                       68. In the WRS Reform NPRM, the
                                              the required form requesting license                    spectrum—be it to provide service to                  Commission proposed a new rule,
                                              cancellation, an authorization will                     subscribers or roamers—and not                        § 1.950, to standardize and clarify its
                                              automatically terminate, without                        allowing it to lie fallow. The                        partitioning and disaggregation rules
                                              specific Commission action, if service is               Commission clarifies, however, that a                 across services in which such activities
                                              permanently discontinued as defined by                  WRS licensee must actually be                         are permitted. As part of this proposal,
                                              the new rules. The Commission                                                                                 the Commission contemplated
                                                                                                      providing service to a roamer and not
                                              disagrees with the two commenters who
                                                                                                      merely have the ability to provide                    establishing consistent performance
                                              ask that the notification period be
                                                                                                      service to roamers.                                   obligations (i.e., construction and
                                              extended to 30 days. Neither commenter
                                                                                                         66. Channel keepers. The Commission                operation) for spectrum licenses that
                                              advances a compelling basis for
                                                                                                                                                            have been divided by geographic
                                              extending the notification period and                   adopts its proposed rule that operation
                                                                                                                                                            partitioning or spectrum disaggregation
                                              the proposed 10-day period will ensure                  of so-called channel keepers—devices
                                                                                                                                                            arrangements. Specifically, the
                                              that the Commission’s records are                       that transmit test signals, tones, and/or
                                                                                                                                                            Commission proposed that each party to
                                              updated on a timely basis.                              color bars, for example—will not
                                                 63. Extension requests. In addition,                                                                       such an arrangement would be
                                                                                                      constitute operation or service for the               individually required to meet any
                                              the Commission adopts the proposed                      purposes of the permanent
                                              extension request process under which                                                                         service-specific performance
                                                                                                      discontinuance rule. As the Commission                requirements.
                                              a request for a longer discontinuance                   explained previously, ‘‘it was clearly
                                              period may be filed for good cause,                                                                              69. At present, there are a wide
                                                                                                      unreasonable . . . to believe that the                variety of Wireless Radio Services under
                                              subject to the requirement that it be
                                                                                                      periodic broadcasting of signals that                 the Commission’s authority that are
                                              filed at least 30 days before the end of
                                                                                                      nobody received constituted ‘service’                 subject to equally varied construction
                                              the discontinuance period. Under this
                                              process, the filing of a request would                  within the meaning of the rule. Such an               and performance obligations. The
                                              automatically extend the                                interpretation is unreasonable; in order              Commission’s current partitioning rules
                                              discontinuance period a minimum of                      to provide a service a provider would,                provide licensees several options to
                                              the later of an additional 30 days or the               at a minimum, need a customer or other                meet their construction obligations: (1)
                                              date upon which the Wireless                            person to serve.’’ The Commission thus                Independent Construction—the parties
                                              Telecommunications Bureau (Bureau)                      adopts the rule regarding channel                     may independently elect to satisfy the
                                              acts on the request. Commenters                         keepers as proposed.                                  construction requirements for their
                                              support the proposed automatic process                                                                        respective partitioned license areas and
                                                                                                         67. Verizon asks the Commission to
                                              for extension requests. Such an express                                                                       failure to perform subjects a licensee in
                                                                                                      expand the definition of operation to                 this context to forfeiture of its
                                              process provides licensees with the                     include facilities that are ‘‘available’’ to
                                              flexibility to request a limited period of                                                                    partitioned license; (2) Collective
                                                                                                      carry customer traffic but are in                     Construction—the parties may
                                              additional time for discontinuance of                   ‘‘standby’’ mode and only used on an
                                              operations as necessitated by the                                                                             collectively share responsibility for
                                                                                                      ‘‘as-needed basis depending on capacity               meeting the construction requirement
                                              licensee’s business and operational
                                                                                                      demands.’’ Verizon argues that these                  for the entire geographic area and if the
                                              needs and the certainty that they will
                                              receive a minimum of 30 additional                      systems are needed to allow licensees to              parties collectively fail, then both will
                                              days to resume service.                                 maximize efficiency of their spectrum                 be subject to a range of penalties,
                                                 64. The Commission declines,                         resources and network investment and                  including possible license forfeiture; or
                                              however, to adopt CCA’s proposal for an                 maintain optimal performance levels                   (3) Partitioner-only Construction—the
                                              automatic six-month extension period                    while providing seamless service to                   partitioner may satisfy the construction
                                              or case-by-case review. An automatic                    customers across multiple licenses in                 requirement for the entire pre-
                                              extension of the permissible                            the same market. The Commission                       partitioned geographic area. Many
                                              discontinuance period of six months                     declines to expand its definition of                  services allow this third option, but the
                                              runs contrary to the goals of timely and                operation as requested by Verizon. As                 repercussions for failure to perform vary
                                              efficient use of the nation’s scare                     the Commission explained previously,                  significantly. In some instances,
                                              spectrum resources. Although unique                     at a minimum, provision of service                    partitionees must still satisfy a
                                              circumstances may arise that necessitate                requires a customer or other person to                substantial service requirement for the
                                              a period of discontinuance beyond what                  serve. That a network is capable of                   partitioned area at renewal. In others,
                                              is automatically permitted under the                    service in ‘‘standby mode’’ or on an ‘‘as-            partitionees can argue that they are not
                                              new rules, these circumstances can                      needed basis’’ without providing actual               obligated to provide service to obtain
                                              adequately be addressed by the existing                 service to a customer or other person is              license renewal since only the non-
                                              waiver processes.                                                                                             performing partitioner is subject to
                                                                                                      insufficient to constitute service for
                                                 65. Roaming. Several commenters ask                                                                        forfeiture of its license at renewal.
                                              that the Commission clarify how its                     purposes of the Commission’s                             70. Licensees also currently have
                                              permanent discontinuance rules apply                    permanent discontinuance rules.                       multiple options under the
                                              to licensees that serve roamers. The                    Moreover, the Commission does not                     Commission’s disaggregation rules to
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                                              Commission concludes that, for                          license spectrum on a network basis;                  meet applicable construction
                                              purposes of the permanent                               rather, it evaluates operational                      obligations: (1) One-party
                                              discontinuance rule, the term ‘‘service’’               obligations on a license-by-license basis,            Construction—parties can assign
                                              includes service provided exclusively or                and thus licensees must maintain                      responsibility to either the disaggregator
                                              incidentally to roamers even though                     continuity of service or operations on a              or the disaggregatee, and construction
                                              such roamers are not subscribers of the                 license-by-license basis.                             by that party is deemed sufficient for
                                              licensee providing roaming service.                                                                           both. Generally, if the designated party


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                                                               Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations                                             41541

                                              fails to perform, only its license is                   requirements.6 Further, to ensure                         commenters’ arguments that proposed
                                              subject to forfeiture at renewal. (2)                   uniformity and clarity, the Commission                    § 1.950(g) would deter secondary market
                                              Shared Construction Responsibility—                     adopts § 1.950, largely as proposed, and                  activity, especially with respect to
                                              parties may share responsibility for                    § 1.950(g), as revised, to replace separate               small, rural licensees for whom buildout
                                              meeting the construction requirements.                  partitioning and disaggregation                           requirements may be prohibitively
                                              Depending on the service, failure to                    construction and performance rules for                    costly. The Commission also finds that
                                              perform by either party could result in                 each service in various rule parts. The                   its rule adequately addresses Blooston’s
                                              forfeiture of both licenses. By contrast,               Commission concludes that these                           arguments underlying its
                                              some service rules allow parties to a                   changes will provide WRS licensees                        recommendation that the Commission
                                              disaggregation to satisfy the                           with greater flexibility to configure their               exempt rural areas from the rule. The
                                              construction requirement in the                         licenses according to their operational                   revised rule allows parties to
                                              aggregate rather than individually.                     needs, while still affording important                    partitioning and disaggregation
                                                                                                      safeguards against spectrum                               arrangements to share service-specific
                                                 71. A majority of the commenters that
                                                                                                      warehousing.                                              construction requirements. The
                                              addressed the partitioning and                             74. The Commission agrees with                         Commission concludes that the
                                              disaggregation construction                             Verizon that imposing an independent                      additional flexibility of the revised rule
                                              requirements in the WRS Reform NPRM                     construction requirement on both                          will continue to enable service
                                              disagree with the Commission’s                          parties to a partitioning or                              providers to configure geographic area
                                              proposal to require that each party to                  disaggregation arrangement, as proposed                   and spectrum block licenses to suit their
                                              such arrangements independently                         in draft § 1.950(g) in the WRS Reform                     unique operational needs, which
                                              satisfy construction obligations. They                  NPRM, might, under certain                                includes using partitioning and
                                              object largely on the basis that the                    circumstances, unnecessarily impose                       disaggregation to open up licensing
                                              current rules already promote efficient                 additional construction requirements on                   opportunities to rural carriers.
                                              spectrum use and changing them is                       parties to partitioning and                                  76. The Commission declines to retain
                                              unnecessary, or worse, harmful. They                    disaggregation arrangements that would                    ‘‘partitioner only’’ construction rules
                                              contend, among other things, that the                   not have existed had the license not                      (wherein a partitioner can certify that it
                                              new rules will curb interest in                         been partitioned or disaggregated. To                     has met or will meet the construction
                                              secondary market opportunities,                         address this potential issue, the                         requirement for the entire pre-
                                              particularly in rural areas, and will                   Commission revises § 1.950(g) to allow                    partitioned area) to encourage carriers to
                                              disrupt existing private contractual                    participants to share the construction                    take risks in rural markets. This
                                              relationships.                                          requirement, which ensures that no two                    proposal would appear to allow a
                                                 72. The Commission’s experience                      parties to a partitioning or                              partitionee in certain services to hold a
                                              with partitioning and disaggregation                    disaggregation arrangement will be                        license for the partitioned area without
                                              indicates that parties can, and                         required to build out more than 100                       deploying facilities on the spectrum for
                                              sometimes do, manipulate the current                    percent of the requirement for any                        a significant period of time, even if the
                                              requirements in ways that result in                     particular geographic area or spectrum                    licensee must be able to certify that it is
                                              spectrum in some services lying fallow                  block. In addition, parties to                            providing service at renewal, or
                                              for long periods of time, contrary to the               partitioning and disaggregation                           otherwise make a showing to justify
                                              Commission’s stated goal of maximizing                  arrangements are not required to                          license renewal. The Commission
                                              efficient spectrum use. For instance,                   continue construction in cases where                      concludes that the better way to
                                              under the current rules, parties have                   the original licensee has already                         promote service to rural markets is to
                                              been free to disaggregate a small sliver                satisfied the requirement for the license                 ensure that all license holders—at least
                                              of a spectrum license over the entire                   term. However, to the extent that                         during the initial license term, and in
                                              geographic licensed area and assign the                 § 1.950(g), as revised, requires that                     circumstances where the original
                                              entire construction requirement to that                 partitionees and disaggregatees comply                    licensee has not previously satisfied the
                                              particular license. In that circumstance,               with interim and final construction                       construction requirement for the entire
                                              only that small sliver of spectrum has                  benchmarks in addition to satisfying the                  geographic area or spectrum block—
                                              been subject to license termination or                  renewal requirements the Commission                       have, directly or indirectly, an
                                              forfeiture, while the bulk of the license               adopts in this order, the Commission’s                    obligation to construct and operate
                                              has not been subject to any construction                interest in preventing spectrum                           facilities on the spectrum.
                                              requirement. The Commission finds that                  warehousing that is permitted under                          77. The Commission declines to adopt
                                              none of the comments effectively                        current rules outweighs the potential                     CTIA’s proposal that the Commission
                                              addresses the central rationale for                     added burden, if any, on these third-                     should exempt a licensee’s wholly
                                              proposing to modify the partitioning                    party licensees.                                          owned subsidiaries or commonly
                                              and disaggregation performance                             75. The Commission finds that the                      controlled affiliates when they partner
                                              requirements, i.e., preventing spectrum                 new rule adequately addresses                             with the licensee to divide the license.
                                              warehousing. The Commission therefore                                                                             The Commission’s experience has
                                              amends the partitioning and
                                                                                                        6 Specifically, in § 1.950(g), as revised herein, the   shown that this type of intra-corporate
                                                                                                      Commission provides the parties to a partitioning         family partitioning and disaggregation
                                              disaggregation rules to prevent spectrum                and/or disaggregation arrangement with two
                                              warehousing.                                            options for satisfying service-specific performance       has proven particularly susceptible to
                                                                                                      requirements (i.e., construction and operation            manipulation for spectrum warehousing
                                                 73. In lieu of requiring each party to               requirements). Under the first option, each party         purposes simply because the parties to
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                                              a partitioning or disaggregation                        may individually satisfy any service-specific             the division are commonly controlled.
                                              arrangement to certify that it will                     requirements and, upon failure, must individually
                                                                                                      face any service-specific performance penalties.          Adoption of CTIA’s proposal risks
                                              independently satisfy service-specific                  Under the second option, both parties may agree to        undermining rather than advancing the
                                              construction and/or performance                         share responsibility for any service-specific             Commission’s objective of eliminating
                                              requirements, the Commission will                       requirements. Upon failure to meet their shared
                                                                                                      service-specific performance requirements, both
                                                                                                                                                                spectrum warehousing. Moreover, the
                                              afford such parties the additional option               parties will be subject to any service-specific           addition of the new option to permit
                                              of sharing service-specific performance                 penalties.                                                shared construction responsibility by a


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                                              41542            Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations

                                              partitioner/partitionee or a                            prevent spectrum warehousing and                      Commission adopt § 1.950 largely as
                                              disaggregator/disaggregatee should                      ensure that future transactions facilitate            proposed in the WRS Reform NPRM,
                                              largely address this concern.                           the availability of spectrum in the                   with the exception of § 1.950(g). The
                                                 78. The Commission does not adopt                    marketplace for licensees who are most                Commission further concludes that
                                              the suggestions raised by MetroPCS and                  highly motivated to use it. By this                   adopting new § 1.950(g), as revised
                                              Verizon that the Commission exempt                      action, the Commission seeks to resolve               herein, will most effectively balance its
                                              Broadband PCS from the proposed rule                    loopholes in the current partitioning                 competing obligations to: (1) remove
                                              based on the argument that the                          and disaggregation rules that could be                potential barriers to entry by returning
                                              substantial service requirement at                      and have been manipulated to avoid the                heretofore fallow spectrum to the
                                              renewal discourages parties to a                        very construction and substantial                     marketplace, and thereby increase
                                              partitioning arrangement from                           service obligations that promote                      competition; (2) encourage parties to use
                                              warehousing spectrum in the manner                      efficient spectrum use. However, the                  spectrum more efficiently; and (3) speed
                                              the Commission seeks to preclude. The                   Commission agrees that its rules should               service to unserved and underserved
                                              Commission concludes that these                         not be applied retroactively to disrupt               areas.
                                              licensees will be no worse off under a                  transactions that have already been
                                              regulatory framework that holds all                                                                           D. Freeze on the Filing of Competing
                                                                                                      negotiated based on the pre-existing
                                              licensees to comparable requirements.                                                                         Renewal Applications and Resolution of
                                                                                                      rules and submitted to the Commission
                                              Many services still allow parties to a                                                                        Previously Pending Competing Renewal
                                                                                                      for approval. Specifically, § 1.950(g) will
                                              partitioning or disaggregation                                                                                Applications
                                                                                                      be applied to partitioning and
                                              arrangement to assign the performance                   disaggregation arrangements reflected in                 84. In the WRS Reform Order, the
                                              requirement to one of the parties and                   applications filed on or after the                    Commission imposed a freeze on the
                                              thereby allow the other to delay or avoid               effective date of the new rule, and not               filing of competing renewal applications
                                              construction in that party’s portion of                 to any arrangements reflected in an                   and held in abeyance the already-filed
                                              the license (whether geography or                       already granted application or in an                  competing renewal applications until
                                              spectrum) if they so choose. This                       application filed before the effective                the conclusion of this proceeding. The
                                              problem exists in numerous services,                    date of new § 1.950(g).                               Commission stated that, if it were to
                                              even if some service rules may                             81. The Commission makes no                        adopt the rules proposed in the WRS
                                              discourage so-called free riders. By this               changes in response to AT&T’s                         Reform NPRM, it would ‘‘dismiss all
                                              Order, the Commission seeks to                          argument that new entrants will be                    pending mutually exclusive
                                              consolidate the services under a single                 discouraged from acquiring spectrum                   applications and related correspondence
                                              set of rules and proscribe spectrum                     through partitioning or disaggregation                filed with the Commission regarding
                                              warehousing by all licensees in the                     when it is late in the original license               those applications.’’
                                              covered services, not just the few who                  term, and there is little time to fulfill the            85. At the time that the WRS Reform
                                              hold spectrum subject to service rules                  construction obligation. The                          Order was adopted, the Commission
                                              that more effectively prevent such                      Commission concludes that this concern                had before it a total of 151 renewal
                                              warehousing.                                            is related not to partitioning and                    applications in three different service
                                                 79. The Commission also declines to                  disaggregation rules, but to the current              bands, and 178 applications competing
                                              adopt CTIA’s proposal to prohibit                       build out rules, which provide that the               with those renewal applications. Most
                                              parties from assuming construction and                  performance requirements associated                   of those competing applications—175 of
                                              performance obligations for an entire                   with a license are not reduced or                     178—were filed in the 2.3 GHz Band
                                              license area or spectrum block unless                   extended as a result of any secondary                 against WCS licensees. These competing
                                              they also hold spectrum covering a                      market transaction, including one near                applications were dismissed by the
                                              majority of that same geographic area or                the end of a license term. The rule                   Commission after the relevant parties
                                              spectrum block. CTIA does not provide                   modifications do not alter those                      reached settlement agreements. Of the
                                              evidence demonstrating why this                         obligations.                                          remaining three competing applications,
                                              approach would be more effective at                        82. Finally, the Commission does not               two were against Cellular licensees’
                                              preventing spectrum warehousing than                    address the suggestion by Sprint and                  renewal applications and one was
                                              the consistent approach envisioned by                   AT&T that licensees that have acquired                against a Broadband PCS licensee’s
                                              the partitioning and disaggregation rules               previously partitioned and/or                         renewal application. The two Cellular
                                              adopted today, nor does it acknowledge                  disaggregated licenses be allowed, as a               competing applications have since been
                                              or address the potential administrative                 matter of processing, to consolidate the              dismissed or resolved. The PCS
                                              burdens that would be placed on                         subdivided parts into the original                    competing application was withdrawn
                                              applicants and on Commission staff in                   license configuration. The Commission                 after the applicant obtained the
                                              addressing such arrangements. The                       finds this proposal to be beyond the                  underlying license at issue via the
                                              Commission believes that adoption of                    scope of this proceeding, which is                    license assignment process.
                                              CTIA’s proposal would provide greater                   narrowly focused on standardizing and                    86. Because there are no remaining
                                              uncertainty in the spectrum marketplace                 clarifying the Commission’s partitioning              pending competing renewal
                                              and would not consistently and                          and disaggregation rules across services.             applications, there is no further action
                                              successfully prevent spectrum                           The question of whether, and how, a                   needed on the Commission’s part to
                                              warehousing.                                            partitioned or disaggregated license can              dismiss such applications.
                                                 80. The Commission also declines to                  be reconstituted as a matter or
                                              exempt existing partitioning and                        processing can be addressed by                        E. Transition From Interim Renewal
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                                              disaggregation arrangements from                        Commission staff under current rules                  Application Procedures
                                              application of the requirements of                      and licensing systems.                                  87. The Commission directed
                                              § 1.950(g) as adopted today, and apply                     83. Commenting parties in this                     incumbent licensees to continue to file
                                              the rule only prospectively and only to                 proceeding that addressed proposed                    timely renewal applications as required
                                              future partitioning and disaggregation                  § 1.950 focused solely on proposed                    by applicable Commission rules during
                                              arrangements. By adopting § 1.950(g) as                 § 1.950(g). Accordingly, based on the                 the pendency of this rulemaking. The
                                              revised, the Commission intends to                      record in this proceeding, the                        Commission further directed that


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                                                               Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations                                         41543

                                              renewal applications routinely should                   Commission previously approved the                    the Commission adopts should reduce
                                              continue to be placed on a Bureau                       withdrawal of the petition for                        filing burdens for all WRS licensees,
                                              accepted for filing public notice, and                  reconsideration filed by Green Flag                   whether large or small. Also, by
                                              that interested parties could continue to               Wireless, LLC, CWC License Holding,                   ensuring, pursuant to the partitioning
                                              file petitions to deny consistent with the              Inc., James McCotter, and NTCH–CA,                    and disaggregation rules and the
                                              rules. In order to reduce uncertainty that              Inc., along with another petition for                 permanent discontinuance rules the
                                              might be caused by long-pending                         reconsideration filed by the same parties             Commission adopts today, that valuable
                                              renewal applications, the Commission                    on October 22, 2010, pursuant to a                    spectrum will not lie fallow, these
                                              directed the Bureau to routinely grant                  settlement agreement. The WCAI                        policies will provide small entities with
                                              renewal applications during the                         petition for partial reconsideration was              more opportunities to gain access to
                                              pendency of this proceeding,                            addressed by the WRS Reform                           valuable spectrum. In addition, the
                                              conditioned on the outcome of this                      Clarification Public Notice, (WT Docket               Commission has described impacts that
                                              rulemaking.                                             No. 10–112) on March 18, 2011, issued                 might affect small businesses, which
                                                 88. Notwithstanding the                              by the Bureau to clarify the conditional              includes most businesses with fewer
                                              Commission’s statement in the WRS                       grant of applications for renewal of                  than 25 employees, in the Final
                                              Reform Order that interested parties                    license in the WRS Reform Order.                      Regulatory Flexibility Analysis (FRFA)
                                              may file petitions to deny consistent                   Subsequent to the release of the WRS                  in Appendix B of the Order.
                                              with the requirements of its rules,                     Reform Clarification Public Notice,
                                              NTCH, Inc., now asks that the                                                                                 B. Congressional Review Act
                                                                                                      CTIA, AT&T, Cricket, Rural Cellular
                                              Commission provide an opportunity for                   Association, Sprint, T-Mobile, US                       94. The Commission will send a copy
                                              a potential applicant to challenge a                    Cellular, and Verizon Wireless filed a                of this Order to Congress and the
                                              renewal applicant’s basic qualifications                motion to withdraw their petition for                 Government Accountability Office
                                              at the close of this docket. NTCH asserts               reconsideration. The Commission finds                 pursuant to the Congressional Review
                                              that providing this opportunity to file                 no reason to address the arguments in                 Act. In addition, the Commission will
                                              petitions to deny against conditionally                 the CTIA Petition and accordingly will                send a copy of the Order, including the
                                              granted renewal applications is                         grant the request to withdraw the CTIA                FRFA, to the Chief Counsel for
                                              necessary to avoid ‘‘permanently                        Petition.                                             Advocacy of the SBA (5 U.S.C. 603(a)).
                                              abrogat[ing] the legal rights of parties                   91. The Commission directs the                     C. Final Regulatory Flexibility Analysis
                                              interested in challenging the grant of a                Bureau to take the necessary steps to
                                              renewal application.’’ The Commission                                                                           95. The Regulatory Flexibility Act of
                                                                                                      cease conditioning the grant of renewal
                                              denies NTCH’s request that it open a                                                                          1980 (RFA) requires that an agency
                                                                                                      applications on the outcome of this
                                              window for the filing of petitions to                                                                         prepare a regulatory flexibility analysis
                                                                                                      proceeding. In addition, the
                                              deny against licensees whose renewal                                                                          for notice and comment rulemakings,
                                                                                                      Commission directs the Bureau to take
                                              applications have been conditionally                                                                          unless the agency certifies that ‘‘the rule
                                                                                                      the necessary steps to remove the
                                              granted. The opportunity to file                                                                              will not, if promulgated, have a
                                                                                                      condition from already granted renewal
                                              petitions to deny against renewal                                                                             significant economic impact on a
                                                                                                      applications or otherwise make clear on
                                              applications has been present                                                                                 substantial number of small entities.’’
                                                                                                      the face of such licenses that such
                                              throughout the pendency of this                                                                               Accordingly, the Commission has
                                                                                                      condition is no longer valid.
                                              proceeding, and NTCH has not offered                                                                          prepared a FRFA, set forth in Appendix
                                              a persuasive legal or equitable argument                II. Procedural Matters                                B of the Order, concerning the possible
                                              in support of having a second shot at                                                                         impact of the rule changes.
                                                                                                      A. Paperwork Reduction Act Analysis
                                              these renewal applications. The                                                                               D. Ex Parte Presentations
                                              Commission accordingly declines to                         92. The Order contains modified
                                              open a window for the filing of petitions               information collection requirements                      96. This proceeding shall continue to
                                              to deny against renewal applications                    subject to the Paperwork Reduction Act                be treated as ‘‘permit-but-disclose’’
                                              that have been conditionally granted.                   of 1995 (PRA), Public Law 104–13. It                  proceeding in accordance with the
                                                 89. Petitions for reconsideration of the             will be submitted to the Office of                    Commission’s ex parte rules. Persons
                                              actions taken by the WRS Reform Order                   Management and Budget (OMB) for                       making ex parte presentations must file
                                              were filed by: (1) Atlantic Tele-Network,               review under § 3507(d) of the PRA.                    a copy of any written presentation or a
                                              Inc., in connection with its wholly                     OMB, the general public, and other                    memorandum summarizing any oral
                                              owned indirect subsidiary’s, Tisdale                    Federal agencies will be invited to                   presentation within two business days
                                              Telephone Company, LLC, competing                       comment on the modified information                   after the presentation (unless a different
                                              Cellular application with the Cellular                  collection requirements contained in                  deadline applicable to the Sunshine
                                              renewal application filed by Kankakee                   this proceeding. In addition, the                     period applies). Persons making oral ex
                                              Cellular L.L.C.; (2) CTIA, AT&T, Cricket,               Commission notes that pursuant to the                 parte presentations are reminded that
                                              Rural Cellular Association, Sprint, T-                  Small Business Paperwork Relief Act of                memoranda summarizing the
                                              Mobile, US Cellular, and Verizon                        2002, Public Law 107–198, see 44 U.S.C.               presentation must (1) list all persons
                                              Wireless; (3) Green Flag Wireless, LLC,                 3506(c)(4), it previously sought specific             attending or otherwise participating in
                                              CWC Licensing Holding, Inc., James                      comment on how it might further                       the meeting at which the ex parte
                                              McCotter, and NTCH–CA, Inc.; and (4)                    reduce the information collection                     presentation was made, and (2)
                                              Wireless Communications Association                     burden for small business concerns with               summarize all data presented and
                                              International, Inc. (WCAI).                             fewer than 25 employees.                              arguments made during the
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                                                 90. The Atlantic Tele-Network, Inc.                     93. The Commission assessed the                    presentation. If the presentation
                                              petition has been mooted by the fact                    effects of the policies adopted in the                consisted in whole or in part of the
                                              that Kankakee withdrew its renewal                      Order with regard to information                      presentation of data or arguments
                                              application for a Cellular license                      collection burdens on small business                  already reflected in the presenter’s
                                              authorization in the Kankakee, Illinois                 concerns, and found that these policies               written comments, memoranda or other
                                              market, and Tisdale was granted a                       will benefit many companies with fewer                filings in the proceeding, the presenter
                                              Cellular license for that market. The                   than 25 employees because the revisions               may provide citations to such data or


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                                              41544            Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations

                                              arguments in his or her prior comments,                 and approval of § 1.949, on the effective             PART 1—PRACTICE AND
                                              memoranda, or other filings (specifying                 date specified in a notice that the                   PROCEDURE
                                              the relevant page and/or paragraph                      Commission will have published in the
                                              numbers where such data or arguments                    Federal Register announcing such                      ■ 1. The authority citation for part 1 is
                                              can be found) in lieu of summarizing                    approval and effective date.                          revised to read as follows:
                                              them in the memorandum. Documents                          102. It is further ordered that the                  Authority: 47 U.S.C. 151, 154(i), 154(j),
                                              shown or given to Commission staff                      amendments adopted in this second                     155, 157, 160, 201, 225, 227, 303, 309, 310,
                                              during ex parte meetings are deemed to                  report and order, and to §§ 22.317,                   332, 1403, 1404, 1451, 1452, and 1455.
                                              be written ex parte presentations and                   22.947, 27.17, 30.106, 74.632, 90.157,                ■ 2. Amend § 1.907 by adding the
                                              must be filed consistent with rule                      90.631, and 101.65, will become                       definitions of ‘‘Covered Geographic
                                              1.1206(b). In proceedings governed by                   effective after OMB review and approval               Licenses’’ and ‘‘Covered Site-based
                                              rule 1.49(f) or for which the                           of § 1.953, on the effective date specified           Licenses’’ in alphabetical order to read
                                              Commission has made available a                         in a notice that the Commission will                  as follows:
                                              method of electronic filing, written ex                 have published in the Federal Register
                                              parte presentations and memoranda                                                                             § 1.907    Definitions.
                                                                                                      announcing such approval and effective
                                              summarizing oral ex parte                                                                                     *     *     *     *     *
                                                                                                      date.
                                              presentations, and all attachments                                                                               Covered Geographic Licenses.
                                              thereto, must be filed through the                         103. It is further ordered that,
                                                                                                      pursuant to sections 4(i) and 405 of the              Covered geographic licenses consist of
                                              Commission’s Electronic Comment                                                                               the following services: 1.4 GHz Service
                                              Filing System (ECFS) available for that                 Communications Act of 1934, 47 U.S.C.
                                                                                                      154(i), 405, and § 1.106 of the                       (part 27, subpart I of this chapter); 1.6
                                              proceeding, and must be filed in their                                                                        GHz Service (part 27, subpart J); 24 GHz
                                              native format (e.g., .doc, .xml, .ppt,                  Commission’s rules, 47 CFR 1.106, the
                                                                                                      Motion of CTIA—The Wireless                           Service and Digital Electronic Message
                                              searchable .pdf). Participants in this                                                                        Services (part 101, subpart G); 218–219
                                              proceeding should familiarize                           Association®, AT&T Services, Inc.,
                                                                                                      Cricket Communications, Inc., Rural                   MHz Service (part 95, subpart F); 220–
                                              themselves with the Commission’s ex                                                                           222 MHz Service, excluding public
                                              parte rules.                                            Cellular Association, Sprint Nextel
                                                                                                      Corporation, T-Mobile USA, United                     safety licenses (part 90, subpart T); 600
                                                97. People with Disabilities. To
                                                                                                      States Cellular Corporation and Verizon               MHz Service (part 27, subpart N); 700
                                              request materials in accessible formats
                                                                                                      Wireless To Withdraw Petition for                     MHz Commercial Services (part 27,
                                              for people with disabilities (braille,
                                              large print, electronic files, audio                    Reconsideration, filed May 31, 2011, to               subparts F and H); 700 MHz Guard Band
                                              format), send an email to fcc504@fcc.gov                withdraw their Petition for                           Service (part 27, subpart G); 800 MHz
                                              or call the Consumer & Governmental                     Reconsideration, filed Aug. 6, 2010, is               Specialized Mobile Radio Service (part
                                              Affairs Bureau at 202–418–0530 (voice),                 granted.                                              90, subpart S); 900 MHz Specialized
                                              202–418–0432 (tty).                                                                                           Mobile Radio Service (part 90, subpart
                                                                                                        104. It is further ordered that,                    S); Advanced Wireless Services (part 27,
                                              III. Ordering Clauses                                   pursuant to section 801(a)(1)(A) of the               subparts K and L); Air-Ground
                                                                                                      Congressional Review Act, 5 U.S.C.                    Radiotelephone Service (Commercial
                                                 98. Accordingly, it is ordered,
                                                                                                      801(a)(1)(A), the Commission shall send               Aviation) (part 22, subpart G);
                                              pursuant to sections 1, 2, 4(i), 4(j), 7,
                                                                                                      a copy of the second report and order                 Broadband Personal Communications
                                              301, 303, 307, 308, 309, 310, and 332 of
                                                                                                      to Congress and to the Government                     Service (part 24, subpart E); Broadband
                                              the Communications Act of 1934, as
                                                                                                      Accountability Office.                                Radio Service (part 27, subpart M);
                                              amended, 47 U.S.C. 151, 152, 154(i),
                                              154(j), 157, 301, 303, 307, 308, 309, 310,                105. It is further ordered that the                 Cellular Radiotelephone Service (part
                                              332, that this second report and order in               Commission’s Consumer and                             22, subpart H); Dedicated Short Range
                                              WT Docket No. 10–112 is adopted.                        Governmental Affairs Bureau, Reference                Communications Service, excluding
                                                 99. It is further ordered that parts 1,              Information Center, shall send a copy of              public safety licenses (part 90, subpart
                                              22, 24, 27, 30, 74, 80, 90, 95, and 101                 the second report and order, including                M); H Block Service (part 27, subpart K);
                                              of the Commission’s rules, 47 CFR parts                 the Initial Regulatory Flexibility                    Local Multipoint Distribution Service
                                              1, 22, 24, 27, 30, 74, 80, 90, 95, and 101,             Analysis and the Final Regulatory                     (part 101, subpart L); Multichannel
                                              are amended, effective October 2, 2017                  Flexibility Analysis, to the Chief                    Video Distribution and Data Service
                                              except as otherwise provided herein.                    Counsel for Advocacy of the Small                     (part 101, subpart P); Multilateration
                                                 100. It is further ordered that the                  Business Administration.                              Location and Monitoring Service (part
                                              amendments adopted in this second                                                                             90, subpart M); Multiple Address
                                                                                                      List of Subjects in 47 CFR Parts 1, 22,               Systems (EAs) (part 101, subpart O);
                                              report and order, and to §§ 1.949, 1.950,
                                                                                                      24, 27, 30, 74, 80, 90, 95, and 101                   Narrowband Personal Communications
                                              and 1.953, which contain new or
                                              modified information collection                           Communications common carriers,                     Service (part 24, subpart D); Paging and
                                              requirements that require review by the                 Radio, Reporting and recordkeeping                    Radiotelephone Service (part 22,
                                              Office of Management and Budget                         requirements.                                         subpart E; part 90, subpart P); VHF
                                              (OMB) under the Paperwork Reduction                                                                           Public Coast Stations, including
                                                                                                      Federal Communications Commission.                    Automated Maritime
                                              Act, will become effective after OMB
                                              review and approval, on the effective                   Katura Jackson,                                       Telecommunications Systems (part 80,
                                              date specified in a notice that the                     Federal Register Liaison Officer, Office of the       subpart J); Upper Microwave Flexible
                                              Commission will have published in the                   Secretary.                                            Use Service (part 30); and Wireless
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                                              Federal Register announcing such                        Final Rules                                           Communications Service (part 27,
                                              approval and effective date.                                                                                  subpart D).
                                                 101. It is further ordered that the                    For the reasons discussed in the                       Covered Site-based Licenses. Covered
                                              amendments adopted in this second                       preamble, the Federal Communications                  site-based licenses consist of the
                                              report and order, and to paragraphs (e),                Commission amends 47 CFR parts 1, 22,                 following services: 220–222 MHz
                                              (q)(7), (r)(6), (s)(6), and (t)(6) of § 27.14,          24, 27, 30, 74, 80, 90, 95, and 101 as                Service (site-based), excluding public
                                              will become effective after OMB review                  follows:                                              safety licenses (part 90, subpart T of this


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                                                               Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations                                          41545

                                              chapter); 800/900 MHz (SMR and                          additional information. Such dismissal                   (1) Covered Site-based Licenses. (i)
                                              Business and Industrial Land                            may be with prejudice in cases of non-                The applicant must certify that it is
                                              Transportation Pool) (part 90, subpart                  compliance with § 1.945. The                          continuing to operate consistent with its
                                              S); Aeronautical Advisory Stations                      Commission may dismiss applications                   most recently filed construction
                                              (Unicoms) (part 87, subpart G); Air-                    with prejudice for failure of the                     notification (or most recent
                                              Ground Radiotelephone Service                           applicant to comply with requirements                 authorization, when no construction
                                              (General Aviation) (part 22, subpart G);                related to a competitive bidding process.             notification is required).
                                              Alaska-Public Fixed Stations (part 80,                  *     *     *     *     *                                (ii) The applicant must certify that no
                                              subpart O); Broadcast Auxiliary Service                                                                       permanent discontinuance of service
                                                                                                      ■ 4. Revise § 1.949 to read as follows:
                                              (part 74, subparts D, E, F, and H);                                                                           occurred during the license term. This
                                              Common Carrier Fixed Point-to-Point,                    § 1.949 Application for renewal of                    safe harbor may be used by any Covered
                                              Microwave Service (part 101, subpart I);                authorization.                                        Site-based License.
                                              Industrial/Business Radio Pool (part 90,                   (a) Filing requirements. Applications                 (2) Geographic licenses—commercial
                                              subpart C); Local Television                            for renewal of authorizations in the                  service. (i) For an applicant in its initial
                                              Transmission Service (part 101, subpart                 Wireless Radio Services must be filed                 license term with an interim
                                              J); Multiple Address Systems (site-                     no later than the expiration date of the              performance requirement, the applicant
                                              based), excluding public safety licenses                authorization, and no sooner than 90                  must certify that it has met its interim
                                              (part 101, subpart H); Non-                                                                                   performance requirement and that over
                                                                                                      days prior to the expiration date.
                                              Multilateration Location and Monitoring                                                                       the portion of the license term following
                                                                                                      Renewal applications must be filed on
                                              Service (part 90, subpart M); Offshore                                                                        the interim performance requirement,
                                                                                                      the same form as applications for initial
                                              Radiotelephone Service (part 22,                                                                              the applicant continues to use its
                                                                                                      authorization in the same service, i.e.,
                                              subpart I); Paging and Radiotelephone                                                                         facilities to provide at least the level of
                                                                                                      FCC Form 601 or 605.
                                              Service (site-based) (part 22, subpart E);                                                                    service required by its interim
                                                                                                         (b) Common expiration date.
                                              Private Carrier Paging (part 90, subpart                                                                      performance requirement; and the
                                                                                                      Licensees with multiple authorizations
                                              P); Private Operational Fixed Point-to-                                                                       licensee has met its final performance
                                                                                                      in the same service may request a                     requirement and continues to use its
                                              Point Microwave Service, excluding                      common date on which such
                                              public safety licenses (part 101, subpart                                                                     facilities to provide at least the level of
                                                                                                      authorizations expire for renewal                     service required by its final performance
                                              H); Public Coast Stations (site-based)                  purposes. License terms may be
                                              (part 80, subpart J); Radiodetermination                                                                      requirement through the end of the
                                                                                                      shortened by up to one year but will not              license term. For an applicant in its
                                              Service Stations (Radionavigation Land                  be extended.
                                              Stations) (part 87, subpart Q);                                                                               initial license term with no interim
                                                                                                         (c) Implementation. Covered Site-                  performance requirement, the applicant
                                              Radiolocation Service (part 90, subpart                 based Licenses, except Common Carrier                 must certify that it has met its final
                                              F); and Rural Radiotelephone Service                    Fixed Point-to-Point Microwave Service                performance requirement and continues
                                              (including Basic Exchange Telephone                     (part 101, subpart I of this chapter), and            to use its facilities to provide at least the
                                              Radio Service) (part 22, subpart F).                    Covered Geographic Licenses in the 600                level of service required by its final
                                              *     *     *     *     *                               MHz Service (part 27, subpart N); 700                 performance requirement through the
                                              ■ 3. Amend § 1.934 by:                                  MHz Commercial Services (part 27,                     end of the license term. For an applicant
                                              ■ a. Revising paragraphs (a)(1)(ii);                    subpart F); Advanced Wireless Services                in any subsequent license term, the
                                              ■ b. Removing paragraph (a)(3); and                     (part 27, subpart L) (AWS–3 (1695–1710                applicant must certify that it continues
                                              ■ c. Revising paragraphs (b) and (c).                   MHz, 1755–1780 MHz, and 2155–2180                     to use its facilities to provide at least the
                                                 The revisions read as follows:                       MHz) and AWS–4 (2000–2020 MHz and                     level of service required by its final
                                                                                                      2180–2200 MHz) only); and H Block                     performance requirement through the
                                              § 1.934 Defective applications and                      Service (part 27, subpart K) must
                                              dismissal.
                                                                                                                                                            end of any subsequent license terms.
                                                                                                      comply with paragraphs (d) through (h)                   (ii) The applicant must certify that no
                                              *       *     *     *     *                             of this section. All other Covered                    permanent discontinuance of service
                                                 (a) * * *                                            Geographic Licenses must comply with                  occurred during the license term. This
                                                 (1) * * *                                            paragraphs (d) through (h) of this                    safe harbor may be used by any Covered
                                                 (ii) If the applicant requests dismissal             section beginning on January 1, 2023.                 Geographic License.
                                              of its application without prejudice, the               Common Carrier Fixed Point-to-Point                      (3) Geographic licenses—private
                                              Commission will dismiss that                            Microwave Service (part 101, subpart I)               systems. (i) For an applicant in its initial
                                              application without prejudice, unless it                must comply with paragraphs (d)                       license term with an interim
                                              is an application for which the                         through (h) of this section beginning on              performance requirement, the applicant
                                              applicant submitted the winning bid in                  October 1, 2018.                                      must certify that it has met its interim
                                              a competitive bidding process.                             (d) Renewal Standard. An applicant                 performance requirement and that over
                                              *       *     *     *     *                             for renewal of an authorization of a                  the portion of the license term following
                                                 (b) Dismissal of mutually exclusive                  Covered Site-based License or a Covered               the interim performance requirement,
                                              applications not granted. The                           Geographic License must demonstrate                   the applicant continues to use its
                                              Commission may dismiss mutually                         that over the course of the license term,             facilities to further the applicant’s
                                              exclusive applications for which the                    the licensee(s) provided and continue to              private business or public interest/
                                              applicant did not submit the winning                    provide service to the public, or                     public safety needs at or above the level
                                              bid in a competitive bidding process.                   operated and continue to operate the                  required to meet its interim performance
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                                                 (c) Dismissal for failure to prosecute.              license to meet the licensee(s)’ private,             requirement; and the applicant has met
                                              The Commission may dismiss                              internal communications needs.                        its final performance requirement and
                                              applications for failure of the applicant                  (e) Safe harbors. An applicant for                 continues to use its facilities to provide
                                              to prosecute or for failure of the                      renewal will meet the Renewal Standard                at least the level of operation required
                                              applicant to respond substantially                      if it can certify that it has satisfied the           by its final performance requirement
                                              within a specified time period to official              requirements of one of the following                  through the end of the license term. For
                                              correspondence or requests for                          safe harbors:                                         an applicant in its initial license term


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                                              41546            Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations

                                              with no interim performance                             of an authorization in the Wireless                   http://www.itl.nist.gov/fipspubs/
                                              requirement, the applicant must certify                 Radio Services identified in paragraph                index.htm.
                                              that it has met its final performance                   (d) of this section must make a                          (2) Geographic partitioning.
                                              requirement and continues to use its                    Regulatory Compliance Certification                   Geographic partitioning is the
                                              facilities to provide at least the level of             certifying that it has substantially                  assignment of a geographic portion of a
                                              operation required by its final                         complied with all applicable FCC rules,               geographic area licensee’s license area.
                                              performance requirement through the                     policies, and the Communications Act                     (3) Spectrum disaggregation.
                                              end of the license term. For an applicant               of 1934, as amended.                                  Spectrum disaggregation is the
                                              in any subsequent license term, the                        (h) Consequences of denial. If the                 assignment of portions of blocks of a
                                              applicant must certify that it continues                Commission, or the Wireless                           geographic area licensee’s spectrum.
                                              to use its facilities to further the                    Telecommunications Bureau acting                         (b) Eligibility. Covered Geographic
                                              applicant’s private business or public                  under delegated authority, finds that a               Licenses are eligible for geographic
                                              interest/public safety needs at or above                licensee has not met the Renewal                      partitioning and spectrum
                                              the level required to meet its final                    Standard under paragraph (d) of this                  disaggregation.
                                              performance requirement.                                section, or that its Regulatory                          (1) Geographic partitioning. An
                                                 (ii) The applicant must certify that no              Compliance Certification under                        eligible licensee may partition any
                                              permanent discontinuance of operation                   paragraph (g) of this section is                      geographic portion of its license area, at
                                              occurred during the license term. This                  insufficient, its renewal application will            any time following grant of its license,
                                              safe harbor may be used by any Covered                  be denied, and its licensed spectrum                  subject to the following exceptions:
                                              Geographic License.                                     will return automatically to the                         (i) 220 MHz Service licensees must
                                                 (4) Partitioned or disaggregated                     Commission for reassignment (by                       comply with § 90.1019 of this chapter.
                                              license without a performance                                                                                    (ii) Cellular Radiotelephone Service
                                                                                                      auction or other mechanism). In the case
                                              requirement. (i) The applicant must                                                                           licensees must comply with § 22.948 of
                                                                                                      of certain services licensed site-by-site,
                                              certify that it continues to use its                                                                          this chapter.
                                                                                                      the spectrum will revert automatically
                                              facilities to provide service or to further                                                                      (iii) Multichannel Video &
                                                                                                      to the holder of the related overlay
                                              the applicant’s private business or                                                                           Distribution and Data Service licensees
                                                                                                      geographic-area license. To the extent
                                              public interest/public safety needs.                                                                          are only permitted to partition licensed
                                                                                                      that an AWS–4 licensee also holds the
                                                 (ii) The applicant must certify that no                                                                    geographic areas along county borders
                                                                                                      2 GHz Mobile Satellite Service (MSS)
                                              permanent discontinuance of service                                                                           (Parishes in Louisiana or Territories in
                                                                                                      rights for the affected license area, the
                                              occurred during the license term. This                                                                        Alaska).
                                                                                                      MSS protection rule in § 27.1136 of this                 (2) Spectrum disaggregation. An
                                              safe harbor may be used by any Covered                  chapter will no longer apply in that
                                              Geographic License.                                                                                           eligible licensee may disaggregate
                                                                                                      license area.                                         spectrum in any amount, at any time
                                                 (f) Renewal Showing. If an applicant
                                              for renewal cannot meet the Renewal                     ■ 5. Add § 1.950 to read as follows:                  following grant of its license to eligible
                                              Standard in paragraph (d) of this section                                                                     entities, subject to the following
                                                                                                      § 1.950 Geographic partitioning and
                                              by satisfying the requirements of one of                spectrum disaggregation.                              exceptions:
                                              the safe harbors in paragraph (e) of this                                                                        (i) 220 MHz Service licensees must
                                                                                                         (a) Definitions. The terms ‘‘county and            comply with § 90.1019 of this chapter.
                                              section, it must make a Renewal
                                                                                                      county equivalent,’’ ‘‘geographic                        (ii) Cellular Radiotelephone Service
                                              Showing, independent of its
                                                                                                      partitioning,’’ and ‘‘spectrum                        licensees must comply with § 22.948 of
                                              performance requirements, as a
                                                                                                      disaggregation’’ as used in this section              this chapter.
                                              condition of renewal. The Renewal
                                                                                                      are defined as follows:                                  (iii) VHF Public Coast (156–162 MHz)
                                              Showing must specifically address the
                                                                                                         (1) County and county equivalent. The              spectrum may only be disaggregated in
                                              Renewal Standard by including a
                                                                                                      terms county and county equivalent as                 frequency pairs, except that the ship
                                              detailed description of the applicant’s
                                                                                                      used in this part are defined by Federal              and coast transmit frequencies
                                              provision of service (or, when allowed
                                                                                                      Information Processing Standards (FIPS)               comprising Channel 87 (see § 80.371(c)
                                              under the relevant service rules or
                                                                                                      6–4, which provides the names and                     of this chapter) may be disaggregated
                                              pursuant to waiver, use of the spectrum
                                                                                                      codes that represent the counties and                 separately.
                                              for private, internal communication)
                                                                                                      other entities treated as equivalent legal               (iv) Disaggregation is not permitted in
                                              during the entire license period and
                                                                                                      and/or statistical subdivisions of the 50             the Multichannel Video & Distribution
                                              address, as applicable:
                                                 (1) The level and quality of service                 States, the District of Columbia, and the             and Data Service 12.2–12.7 GHz band.
                                              provided by the applicant (e.g., the                    possessions and freely associated areas                  (c) Filing requirements. Parties
                                              population served, the area served, the                 of the United States. Counties are the                seeking approval for geographic
                                              number of subscribers, the services                     ‘‘first-order subdivisions’’ of each State            partitioning, spectrum disaggregation, or
                                              offered);                                               and statistically equivalent entity,                  a combination of both must apply for a
                                                 (2) The date service commenced,                      regardless of their local designations                partial assignment of authorization by
                                              whether service was ever interrupted,                   (county, parish, borough, etc.). Thus, the            filing FCC Form 603 pursuant to § 1.948.
                                              and the duration of any interruption or                 following entities are equivalent to                  Each request for geographic partitioning
                                              outage;                                                 counties for legal and/or statistical                 must include an attachment defining the
                                                 (3) The extent to which service is                   purposes: The parishes of Louisiana; the              perimeter of the partitioned area by
                                              provided to rural areas;                                boroughs and census areas of Alaska;                  geographic coordinates to the nearest
                                                 (4) The extent to which service is                   the District of Columbia; the                         second of latitude and longitude, based
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                                              provided to qualifying tribal land as                   independent cities of Maryland,                       upon the 1983 North American Datum
                                              defined in § 1.2110(e)(3)(i) of this                    Missouri, Nevada, and Virginia; that                  (NAD83). Alternatively, applicants may
                                              chapter; and                                            part of Yellowstone National Park in                  specify an FCC-recognized service area
                                                 (5) Any other factors associated with                Montana; and various entities in the                  (e.g., Basic Trading Area, Economic
                                              the level of service to the public.                     possessions and associated areas. The                 Area, Major Trading Area, Metropolitan
                                                 (g) Regulatory Compliance                            FIPS codes and FIPS code                              Service Area, or Rural Service Area),
                                              Certification. An applicant for renewal                 documentation are available online at                 county, or county equivalent, in which


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                                                               Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations                                            41547

                                              case, applicants need only list the                     the date it is required to be providing               § 1.955    Termination of authorizations.
                                              specific FCC-recognized service area,                   service or operating.                                 *     *     *    *     *
                                              county, or county equivalent names                         (b) 180-day Rule for Geographic                      (a) * * *
                                              comprising the partitioned area.                        Licenses. Permanent discontinuance of                   (3) Service discontinued.
                                                 (d) Relocation of incumbent licensees.               service or operations for Covered                     Authorizations automatically terminate,
                                              Applicants for geographic partitioning,                 Geographic Licenses is defined as 180                 without specific Commission action, if
                                              spectrum disaggregation, or a                           consecutive days during which a                       service or operations are permanently
                                              combination of both must, if applicable,                licensee does not operate or, in the case             discontinued. See § 1.953.
                                              include a certification with their partial              of commercial mobile radio service                    *     *     *    *     *
                                              assignment of authorization application                 providers, does not provide service to at
                                              stating which party will meet any                       least one subscriber that is not affiliated           PART 22—PUBLIC MOBILE SERVICES
                                              incumbent relocation requirements,                      with, controlled by, or related to the
                                              except as otherwise stated in service-                  licensee.                                             ■ 8. The authority citation for part 22
                                              specific rules.                                            (c) 365-day Rule for Site-based                    continues to read as follows:
                                                 (e) License term. The license term for               Licenses. Permanent discontinuance of                   Authority: 47 U.S.C. 154, 222, 303, 309 and
                                              a partitioned license area or                           service or operations for Covered Site-               332.
                                              disaggregated spectrum license is the                   based Licenses is defined as 365
                                              remainder of the original licensee’s                    consecutive days during which a                       § 22.131    [Amended]
                                              license term.                                           licensee does not operate or, in the case             ■ 9. Amend § 22.131 as follows:
                                                                                                      of commercial mobile radio service                    ■ a. Remove paragraph (b)(1);
                                                 (f) Frequency coordination. Any
                                                                                                      providers, does not provide service to at             ■ b. Redesignate paragraphs (b)(2)
                                              existing frequency coordination
                                                                                                      least one subscriber that is not affiliated           through (4) as paragraphs (b)(1) through
                                              agreements convey with the partial
                                                                                                      with, controlled by, or related to the                (3);
                                              assignment of authorization for
                                                                                                      providing carrier.                                    ■ c. Remove paragraph (c)(3)(i);
                                              geographic partitioning, spectrum                          (d) 365-day Rule for public safety
                                              disaggregation, or a combination of                                                                           ■ d. Redesignate paragraphs (c)(3)(ii)
                                                                                                      licenses. Permanent discontinuance of                 and (iii) as paragraphs (c)(3)(i) and (ii);
                                              both, and shall remain in effect for the                operations is defined as 365 consecutive
                                              term of the agreement unless new                                                                              ■ e. Remove paragraph (c)(4)(i); and
                                                                                                      days during which a licensee does not                 ■ f. Redesignate paragraphs (c)(4)(ii)
                                              agreements are reached.                                 operate. This 365-day rule applies to
                                                 (g) Performance requirements. Parties                                                                      through (iv) as paragraphs (c)(4)(i)
                                                                                                      public safety licenses issued based on                through (iii).
                                              to geographic partitioning, spectrum                    the applicant demonstrating eligibility
                                              disaggregation, or a combination of                     under § 90.20 or § 90.529 of this chapter,            § 22.317    [Removed]
                                              both, have two options to satisfy                       or public safety licenses issued in
                                              service-specific performance                                                                                  ■   10. Remove § 22.317.
                                                                                                      conjunction with a waiver pursuant to
                                              requirements (i.e., construction and                    section 337 of the Communications Act.                § 22.513    [Amended]
                                              operation requirements). Under the first                   (e) Channel keepers. Operation of
                                              option, each party may certify that it                                                                        ■ 11. Amend § 22.513 by removing
                                                                                                      channel keepers (devices that transmit                paragraphs (f) and (g).
                                              will individually satisfy any service-                  test signals, tones, color bars, or some
                                              specific requirements and, upon failure,                combination of these, for example) does               § 22.947    [Removed]
                                              must individually face any service-                     not constitute operation or service for
                                              specific performance penalties. Under                                                                         ■   12. Remove § 22.947.
                                                                                                      the purposes of this section.
                                              the second option, both parties may                        (f) Filing requirements. A licensee that           PART 24—PERSONAL
                                              agree to share responsibility for any                   permanently discontinues service as                   COMMUNICATIONS SERVICES
                                              service-specific requirements. Upon                     defined in this section must notify the
                                              failure to meet their shared service-                   Commission of the discontinuance                      ■ 13. The authority citation for part 24
                                              specific performance requirements, both                 within 10 days by filing FCC Form 601                 continues to read as follows:
                                              parties will be subject to any service-                 or 605 requesting license cancellation.
                                                                                                                                                              Authority: 47 U.S.C. 154, 301, 302, 303,
                                              specific penalties.                                     An authorization will automatically                   309 and 332.
                                                 (h) Unjust enrichment. Licensees                     terminate, without specific Commission
                                              making installment payments or that                     action, if service or operations are                  § 24.16    [Removed]
                                              received a bidding credit, that partition               permanently discontinued as defined in                ■   14. Remove § 24.16.
                                              their licenses or disaggregate their                    this section, even if a licensee fails to
                                              spectrum to entities that do not meet the               file the required form requesting license             § 24.104    [Amended]
                                              eligibility standards for installment                   cancellation.                                         ■ 15. Amend § 24.104 by removing
                                              payments or bidding credits, are subject                   (g) Extension request. A licensee may              paragraphs (f) and (g).
                                              to the unjust enrichment requirements                   file a request for a longer
                                              of § 1.2111.                                            discontinuance period for good cause.                 § 24.714    [Amended]
                                              ■ 6. Add § 1.953 to read as follows:
                                                                                                      An extension request must be filed at                 ■ 16. Amend § 24.714 by removing
                                                                                                      least 30 days before the end of the                   paragraph (e).
                                              § 1.953 Discontinuance of service or                    applicable 180-day or 365-day
                                              operations.                                             discontinuance period. The filing of an               PART 27—MISCELLANEOUS
                                                 (a) Termination of authorization. A                  extension request will automatically                  WIRELESS COMMUNICATIONS
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                                              licensee’s authorization will                           extend the discontinuance period a                    SERVICES
                                              automatically terminate, without                        minimum of the later of an additional
                                              specific Commission action, if the                      30 days or the date upon which the                    ■ 17. The authority citation for part 27
                                              licensee permanently discontinues                       Wireless Telecommunications Bureau                    continues to read as follows:
                                              service or operations under the license                 acts on the request.                                    Authority: 47 U.S.C. 154, 301, 302a, 303,
                                              during the license term. A licensee is                  ■ 7. Amend § 1.955 by revising                        307, 309, 332, 336, 337, 1403, 1404, 1451,
                                              subject to this provision commencing on                 paragraph (a)(3) to read as follows:                  and 1452, unless otherwise noted.



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                                              41548            Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations

                                              ■ a. Revising the section heading;                      based AMTS, or nationwide or multi-                   RSUs located within the licensed
                                              ■ b. Removing and reserving paragraphs                  region LF, MF, and HF public coast                    geographic area described in paragraph
                                              (b) through (f); and                                    licensee will be required to construct                (a) of this section. Licensees must
                                              ■ c. Removing paragraphs (q)(7), (r)(6),                and commence ‘‘service to subscribers’’               register each RSU in the Universal
                                              (s)(6), and (t)(6).                                     in all facilities acquired through such               Licensing System (ULS) before
                                                 The revision reads as follows:                       transactions within the original                      operating such RSU. RSU registrations
                                                                                                      construction deadline for each facility               are subject, inter alia, to the
                                              § 27.14    Construction requirements.
                                                                                                      as set forth in § 80.49. Failure to meet              requirements of § 1.923 of this chapter
                                              *      *     *       *      *                           the individual construction deadline                  as applicable (antenna structure
                                              § 27.15    [Amended]                                    will result in the automatic termination              registration, environmental concerns,
                                                                                                      of the facility’s authorization.                      international coordination, and quiet
                                              ■ 19. Amend § 27.15 by removing                                                                               zones). Additionally, RSUs at locations
                                              paragraph (d).                                          PART 90—PRIVATE LAND MOBILE                           subject to NTIA coordination (see
                                                                                                      RADIO SERVICES                                        § 90.371(b)) may not begin operation
                                              § 27.17    [Removed]
                                                                                                                                                            until NTIA approval is received.
                                              ■   20. Remove § 27.17.                                 ■ 28. The authority citation for part 90              Registrations are not effective until the
                                                                                                      continues to read as follows:                         Commission posts them on the ULS. It
                                              PART 30—UPPER MICROWAVE                                   Authority: Sections 4(i), 11, 303(g), 303(r),       is the DSRCS licensee’s responsibility to
                                              FLEXIBLE USE SERVICE                                    and 332(c)(7) of the Communications Act of            delete from the registration database any
                                                                                                      1934, as amended, 47 U.S.C. 154(i), 161,              RSUs that have been discontinued.
                                              ■ 21. The authority citation for part 30                303(g), 303(r), and 332(c)(7), and Title VI of
                                              continues to read as follows:                                                                                 *      *     *     *     *
                                                                                                      the Middle Class Tax Relief and Job Creation
                                                                                                      Act of 2012, Public Law 112–96, 126 Stat.             ■ 33. Amend § 90.631 by revising
                                                Authority: 47 U.S.C. 151, 152, 153, 154,
                                              301, 303, 304, 307, 309, 310, 316, 332, 1302.           156.                                                  paragraph (f) to read as follows:

                                              § 30.105    [Amended]                                   § 90.157    [Removed]                                 § 90.631 Trunked systems loading,
                                                                                                                                                            construction and authorization
                                              ■ 22. Amend § 30.105 by removing                        ■ 29. Remove § 90.157.                                requirements.
                                              paragraph (d).                                          ■ 30. Amend § 90.165 by:                              *       *      *     *     *
                                                                                                      ■ a. Removing paragraph (b)(1);                          (f) If a station is not placed in
                                              § 30.106    [Removed]
                                                                                                      ■ b. Redesignating paragraphs (b)(2)                  permanent operation, in accordance
                                              ■   23. Remove § 30.106.                                through (4) as paragraphs (b)(1) through              with the technical parameters of the
                                                                                                      (3);                                                  station authorization, within one year,
                                              PART 74—EXPERIMENTAL RADIO,                             ■ c. Removing paragraph (c)(3)(i);                    except as provided in § 90.629, its
                                              AUXILIARY, SPECIAL BROADCAST                            ■ d. Redesignating paragraphs (c)(3)(ii)              license cancels automatically. For
                                              AND OTHER PROGRAM                                       and (iii) as paragraphs (c)(3)(i) and (ii);           purposes of this section, a base station
                                              DISTRIBUTIONAL SERVICES                                 ■ e. Revising newly redesignated                      is not considered to be placed in
                                                                                                      paragraph (c)(3)(ii);                                 operation unless at least two associated
                                              ■ 24. The authority citation for part 74
                                                                                                      ■ f. Removing paragraph (c)(4)(i); and                mobile stations, or one control station
                                              continues to read as follows:
                                                                                                      ■ g. Redesignating paragraphs (c)(4)(ii)              and one mobile station, are also placed
                                                Authority: 47 U.S.C. 154, 302a, 303, 307,             through (iv) as paragraphs (c)(4)(i)                  in operation.
                                              309, 310, 336 and 554.                                  through (iii).                                        *       *      *     *     *
                                              § 74.632    [Amended]                                     The revision reads as follows:                      ■ 34. Amend § 90.685 by revising
                                              ■ 25. Amend § 74.632 by removing                        § 90.165 Procedures for mutually                      paragraph (a) to read as follows:
                                              paragraph (g).                                          exclusive applications.
                                                                                                                                                            § 90.685 Authorization, construction and
                                                                                                      *       *     *   *     *                             implementation of EA licenses.
                                              PART 80—STATIONS IN THE                                    (c) * * *                                            (a) EA licenses in the 809–824/854–
                                              MARITIME SERVICES                                          (3) * * *                                          869 MHz band will be issued for a term
                                                                                                         (ii) If any mutually exclusive                     not to exceed ten years.
                                              ■ 26. The authority citation for part 80                application filed on the earliest filing
                                              continues to read as follows:                                                                                 *     *     *    *     *
                                                                                                      date is an application for modification,
                                                Authority: Secs. 4, 303, 307(e), 309, and                                                                   ■ 35. Revise § 90.743 to read as follows:
                                                                                                      a same-day filing group is used.
                                              332, 48 Stat. 1066, 1082, as amended; 47
                                                                                                      *       *     *   *     *                             § 90.743   Renewal requirements.
                                              U.S.C. 154, 303, 307(e), 309, and 332, unless
                                              otherwise noted. Interpret or apply 48 Stat.                                                                     Until January 1, 2023, all licensees
                                                                                                      § 90.365    [Amended]
                                              1064–1068, 1081–1105, as amended; 47                                                                          seeking renewal of their authorizations
                                              U.S.C. 151–155, 301–609; 3 UST 3450, 3 UST              ■ 31. Amend § 90.365 by removing                      at the end of their license term must file
                                              4726, 12 UST 2377.                                      paragraph (d).                                        a renewal application in accordance
                                              ■ 27. Amend § 80.60 by revising                         ■ 32. Amend § 90.375 by revising                      with the provisions of § 1.949 of this
                                              paragraph (d) to read as follows:                       paragraph (b) to read as follows:                     chapter. Licensees must demonstrate, in
                                                                                                                                                            their application, that:
                                              § 80.60 Partitioned licenses and                        § 90.375 RSU license areas,                              (a) They have provided ‘‘substantial’’
                                              disaggregated spectrum.                                 communication zones and registrations.                service during their past license term.
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                                              *     *     *    *    *                                 *     *     *     *     *                             ‘‘Substantial’’ service is defined in this
                                                (d) Partitioning and disaggregation                     (b) Applicants who are approved in                  rule as service that is sound, favorable,
                                              construction requirements for site-based                accordance with FCC Form 601 will be                  and substantially above a level of
                                              AMTS, and nationwide or multi-region                    granted non-exclusive licenses for all                mediocre service that just might
                                              LF, MF, and HF public coast. Parties                    non-reserved DSRCS frequencies (see                   minimally warrant renewal; and
                                              seeking to acquire a partitioned license                § 90.377). Such licenses serve as a                      (b) They have substantially complied
                                              or disaggregated spectrum from a site-                  prerequisite of registering individual                with applicable FCC rules, policies, and


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                                                               Federal Register / Vol. 82, No. 169 / Friday, September 1, 2017 / Rules and Regulations                                              41549

                                              the Communications Act of 1934, as                      operational for a period of 30 days or                compliance with the respective
                                              amended.                                                more. A licensee is subject to this                   construction requirements within the
                                                                                                      provision commencing on the date it is                appropriate construction benchmarks
                                              § 90.813    [Amended]                                   required to be providing service or                   set forth in § 101.1325.
                                              ■ 36. Amend § 90.813 by removing                        operating under § 101.63. This provision              *     *     *     *    *
                                              paragraph (e).                                          is inapplicable to blanket authorizations
                                                                                                      to operate fixed stations at temporary                § 101.1327   [Removed]
                                              § 90.816    [Removed]
                                                                                                      locations pursuant to the provisions of               ■ 51. Remove § 101.1327.
                                              ■   37. Remove § 90.816.                                § 101.31(a)(2). See § 101.305 for                     ■ 52. Amend § 101.1413 by revising the
                                                                                                      additional rules regarding temporary                  section heading, paragraph (b)
                                              § 90.911    [Amended]
                                                                                                      and permanent discontinuation of                      introductory text, and paragraph (c) to
                                              ■ 38. Amend § 90.911 by removing                        service.                                              read as follows:
                                              paragraphs (e) and redesignating                        ■ 45. Amend § 101.527 by revising
                                              paragraph (f) as (e).                                   paragraph (a) and paragraph (b)                       § 101.1413 License term and construction
                                                                                                      introductory text to read as follows:                 requirements.
                                              § 90.1019    [Amended]
                                                                                                                                                            *     *     *     *      *
                                              ■ 39. Amend § 90.1019 by removing                       § 101.527 Construction requirements for                 (b) As a construction requirement,
                                              paragraph (d).                                          24 GHz operations.                                    MVDDS licensees must make a showing
                                                                                                         (a) Each licensee must make a                      of substantial service at the end of five
                                              PART 95—PERSONAL RADIO                                  showing of ‘‘substantial service’’ within             years into the license period and ten
                                              SERVICES                                                ten years of its license grant.                       years into the license period. The
                                                                                                      ‘‘Substantial service’’ is a service which            substantial service requirement is
                                              ■ 40. The authority citation for part 95
                                                                                                      is sound, favorable, and substantially                defined as a service that is sound,
                                              continues to read as follows:
                                                                                                      above a level of mediocre service which               favorable, and substantially above a
                                                Authority: 47 U.S.C. 154, 301, 302(a), 303,           just might minimally warrant renewal                  level of mediocre service which might
                                              and 307(e).                                             during its past license term. Until                   minimally warrant renewal. At the end
                                              § 95.1923    [Amended]                                  January 1, 2023, ‘‘substantial service’’              of five years into the license term and
                                                                                                      assessment will be made at renewal                    ten years into the license period, the
                                              ■ 41. Amend § 95.1923 by removing                       pursuant to the provisions and
                                              paragraph (d).                                                                                                Commission will consider factors such
                                                                                                      procedures set forth in § 1.949 of this               as:
                                              ■ 42. Amend § 95.1933 by revising                       chapter.
                                              paragraph (a) and paragraph (b)                                                                               *     *     *     *      *
                                                                                                         (b) Until January 1, 2023, each                      (c) The renewal application of an
                                              introductory text to read as follows:                   licensee must, at a minimum file:                     MVDDS licensee is governed by § 1.949
                                              § 95.1933    Construction requirements.                 *      *     *     *    *                             of this chapter.
                                                 (a) Each 218–219 MHz Service                         § 101.529    [Removed]                                § 101.1415   [Amended]
                                              licensee must make a showing of
                                                                                                      ■   46. Remove § 101.529.                             ■ 53. Amend § 101.1415 by removing
                                              ‘‘substantial service’’ within ten years of
                                              the license grant. Until January 1, 2023,               § 101.535    [Amended]                                paragraph (f).
                                              ‘‘substantial service’’ assessment will be                                                                    ■ 54. Amend § 101.1513 by revising the
                                                                                                      ■ 47. Amend § 101.535 by removing
                                              made at renewal pursuant to the                                                                               section heading to read as follows:
                                                                                                      paragraph (d).
                                              provisions and procedures contained in
                                                                                                      ■ 48. Revise § 101.1011 to read as                    § 101.1513   License term.
                                              § 1.949 of this chapter.
                                                 (b) Until January 1, 2023, each 218–                 follows:                                              *        *   *     *      *
                                              219 MHz Service licensee must file a                                                                          [FR Doc. 2017–18501 Filed 8–31–17; 8:45 am]
                                                                                                      § 101.1011    Construction requirements.
                                              report to be submitted to inform the                       LMDS licensees must make a showing
                                                                                                                                                            BILLING CODE 6712–01–P
                                              Commission of the service status of its                 of ‘‘substantial service’’ in their license
                                              system. The report must be labeled as an                area within ten years of being licensed.
                                              exhibit to the renewal application. At                                                                        FEDERAL COMMUNICATIONS
                                                                                                      ‘‘Substantial’’ service is defined as                 COMMISSION
                                              minimum, the report must include:                       service which is sound, favorable, and
                                              *      *     *    *      *                              substantially above a level of mediocre               47 CFR Part 2, 15, 74, 87, and 90
                                                                                                      service which might minimally warrant
                                              PART 101—FIXED MICROWAVE                                                                                      [GN Docket Nos. 14–166, 12–268, ET Docket
                                                                                                      renewal. Failure by any licensee to meet
                                              SERVICES                                                                                                      No. 14–165; FCC 17–95]
                                                                                                      this requirement will result in forfeiture
                                              ■ 43. The authority citation for part 101               of the license and the licensee will be               Promoting Spectrum Access for
                                              continues to read as follows:                           ineligible to regain it.                              Wireless Microphone Operations
                                                  Authority: 47 U.S.C. 154, 303.                      § 101.1111    [Amended]                               AGENCY:  Federal Communications
                                              ■   44. Revise § 101.65 to read as follows:             ■ 49. Amend § 101.1111 by removing                    Commission.
                                                                                                      paragraph (e).                                        ACTION: Final rule.
                                              § 101.65 Termination of station
                                                                                                      ■ 50. Amend § 101.1323 by revising
                                              authorizations.                                                                                               SUMMARY:   In this document, the
                                                                                                      paragraph (c) to read as follows:
sradovich on DSK3GMQ082PROD with RULES




                                                 In addition to the provisions of                                                                           Commission addresses several petitions
                                              § 1.953 of this chapter, a site-based                   § 101.1323 Spectrum aggregation,                      for reconsideration regarding recent
                                              license will be automatically terminated                disaggregation, and partitioning.                     decisions regarding wireless
                                              in whole or in part without further                     *     *    *     *    *                               microphones. Specifically, the
                                              notice to the licensee upon the                           (c) Construction requirements.                      Commission makes technical revisions
                                              voluntary removal or alteration of the                  Responsible parties must submit                       to the spurious emission limits that it
                                              facilities, so as to render the station not             supporting documents showing                          had adopted for licensed wireless


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Document Created: 2017-09-01 01:50:24
Document Modified: 2017-09-01 01:50:24
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective October 2, 2017, except for the amendments to Sec. Sec. 1.949, 1.950, and 1.953, which contain information collection requirements that require approval by the Office of Management and Budget (OMB) under the Paperwork Reduction Act (PRA), and which the Commission will announce by publishing a document in the Federal Register. The amendments to paragraphs (e), (q)(7), (r)(6), (s)(6), and (t)(6) of Sec. 27.14 will become effective after OMB review and approval of Sec. 1.949, which the Commission will announce by publishing a document in the Federal Register; and the amendments to Sec. Sec. 22.317, 22.947, 27.17, 30.106, 74.632, 90.157, 90.631, and 101.65 will become effective after OMB review and approval of Sec. 1.953, and which the Commission will announce by publishing a document in the Federal Register.
ContactJoyce Jones at [email protected], of the Wireless Telecommunications Bureau, Mobility Division, (202) 418- 1327. For additional information concerning the PRA information collection requirements contained in this document, contact Cathy Williams at (202) 418-2918 or send an email to [email protected]
FR Citation82 FR 41530 
CFR Citation47 CFR 101
47 CFR 1
47 CFR 22
47 CFR 24
47 CFR 27
47 CFR 30
47 CFR 74
47 CFR 80
47 CFR 90
47 CFR 95
CFR AssociatedCommunications Common Carriers; Radio and Reporting and Recordkeeping Requirements

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