Sec.  24.103   Construction requirements.

   (a) Nationwide narrowband PCS licensees shall construct base stations that
   provide coverage to a composite area of 750,000 square kilometers or serve
   37.5 percent of the U.S. population within five years of initial license
   grant date; and, shall construct base stations that provide coverage to a
   composite area of 1,500,000 square kilometers or serve 75 percent of the
   U.S. population within ten years of initial license grant date. Licensees
   may, in the alternative, provide substantial service to the licensed area as
   provided in paragraph (d) of this section.

   (b) Regional narrowband PCS licensees shall construct base stations that
   provide coverage to a composite area of 150,000 square kilometers or serve
   37.5 percent of the population of the service area within five years of
   initial license grant date; and, shall construct base stations that provide
   coverage  to a composite area of 300,000 square kilometers or serve 75
   percent of the service area population within ten years of initial license
   grant date. Licensees may, in the alternative, provide substantial service
   to the licensed area as provided in paragraph (d) of this section.

   (c) MTA narrowband PCS licensees shall construct base stations that provide
   coverage to a composite area of 75,000 square kilometers or 25 percent of
   the geographic area, or serve 37.5 percent of the population of the service
   area within five years of initial license grant date; and, shall construct
   base stations that provide coverage to a composite area of 150,000 square
   kilometers or 50 percent of the geographic area, or serve 75 percent of the
   population of the service area within ten years of initial license grant
   date. Licensees may, in the alternative, provide substantial service to the
   licensed area as provided in paragraph (d) of this section.

   (d) As an alternative to the requirements of paragraphs (a), (b), and (c) of
   this section, narrowband PCS licensees may demonstrate that, no later than
   ten years after the initial grant of their license, they provide substantial
   service to their licensed area. Licensees choosing this option must notify
   the FCC by filing FCC Form 601, no later than 15 days after the end of the
   five year period following the initial grant of their license, that they
   plan to satisfy the alternative requirement to provide substantial service.
   “Substantial service” is defined as service that is sound, favorable, and
   substantially above a level of mediocre service that would barely warrant
   renewal.

   (e) In demonstrating compliance with the construction requirements set forth
   in this section, licensees must base their calculations on signal field
   strengths  that  ensure  reliable service for the technology utilized.
   Licensees may determine the population of geographic areas included within
   their service contours using either the 1990 census or the 2000 census, but
   not both.

   (1) For the purpose of this section, the service radius of a base station
   may be calculated using the following formula:

   d[km]= 2.53 × h[m]0.34 × p^0.17

   where d[km]is the radial distance in kilometers,

   h[m]is the antenna HAAT of the base station in meters, and

   p is the e.r.p. of the base station in watts.

   (2) Alternatively, licensees may use any service radius contour formula
   developed or generally used by industry, provided that such formula is based
   on the technical characteristics of their system.

   (f) Upon meeting the five and ten year benchmarks in paragraphs (a), (b),
   and (c) of this section, or upon meeting the substantial service alternative
   in paragraph (d), licensees shall notify the Commission by filing FCC Form
   601 and including a map and other supporting documentation that demonstrate
   the required geographic area coverage, population coverage, or substantial
   service  to the licensed area. The notification must be filed with the
   Commission within 15 days of the expiration of the relevant period.

   (g) If the sale of a license is approved, the new licensee is held to the
   original build-out requirement.

   (h) Failure by a licensee to meet the above construction requirements shall
   result in forfeiture of the license and ineligibility to regain it.

   [ 59 FR 14118 , Mar. 25, 1994, as amended at  65 FR 35852 , June 6, 2000]