Sec.  101.1327   Renewal expectancy for EA licensees.

   (a) A renewal applicant shall receive a renewal expectancy at the end of the
   license period as long as the applicant:

   (1) Demonstrates that the licensee has provided continued “substantial
   service,” i.e., service which is sound, favorable, and substantially above a
   level of mediocre service which just might minimally warrant renewal, during
   its past license term;

   (2)  Demonstrates  that  the  licensee has substantially complied with
   applicable Commission Rules, policies, and the Communications Act of 1934,
   as amended;

   (3) Provides an explanation of the licensee's record of expansion, including
   a timetable of the construction of new facilities to meet changes in demand
   for services provided by the licensee; and (4) Provides a description of
   investments made by the licensee in its system.

   (b)  In  determining whether a renewal applicant has complied with the
   “substantial service” requirement by the end of the ten-year initial license
   term, the Commission may consider factors such as:

   (1)  Whether the licensee is offering a specialized or technologically
   sophisticated service that does not require a high level of coverage to be
   of benefit to customers; and

   (2) Whether the licensee's operations service niche markets or focus on
   serving  populations  outside  of areas served by other licensees. The
   “substantial service” requirement can, however, be met in other ways, and
   the Commission will review each licensee's showing on a case-by-case basis.

   (c) A “substantial service” assessment will be made at renewal pursuant to
   the procedures contained in  Sec. 1.949 of this chapter.

   [ 65 FR 17450 , Apr. 3, 2000]