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700 MHz Commercial and Public Safety Spectrum

SERVICE RULES

(4) years of the commencement of the license term and the end-of term requirements within ten (10) years of the commencement of the license term, which begins on February 17, 2009.  Failure to meet the interim requirement will result in a two-year reduction in license term from ten years (i.e., ending February 17, 2019) to eight years (i.e., ending February 17, 2017), as well as possible enforcement action, including forfeitures.  The FCC also reserves the right for those that fail to meet the interim benchmarks to impose a proportional reduction in the size of the licensed area.  Licensees that fail to meet the end-of-term benchmarks will be subject to a “keep-what-you-use” rule, under which the licensee will lose its authorization for unserved portions of its license area, which will be returned to the FCC for reassignment.

 a.         Lower 700 MHz Band Build Out

            For licenses in the Lower 700 MHz band must provide signal coverage and offer service to:  1) at least 35 percent of the geographic area of their license within four years, and 2) at least 70 percent of the geographic area of their license at the end of the license term.

b.         Upper 700 MHz C Block Build Out

            Upper 700 MHz C Block licensees must provide signal coverage and offer service to: 1) at least 40 percent of the population of the license area within four (4) years, and 2) at least 75 percent of the population of the license area by the end of the license term.  In addition, for licenses based on REAGs, the build-out requirements will be applied on an EA by EA basis.  Accordingly, to meet their benchmarks, REAG licensees must provide signal coverage and offer service to at least 40 percent of the population in each EA in its license area within four (4) years and 75 percent of the population of each of these EAs at the end of the license term.

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For questions regarding the 700 MHz Auction, Please contact
James Moskowitz at (202) 939-7900.

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