Sec.  73.7002   Fair distribution of service on reserved band FM channels.

   (a) If timely filed applications for full service stations on reserved FM
   channels are determined to be mutually exclusive, and will serve different
   communities, the Commission will first determine, as a threshold issue,
   whether grant of a particular application would substantially further the
   fair distribution of service goals enunciated in section 307(b) of the
   Communications Act, 47 U.S.C. 307(b).

   (b) In an analysis performed pursuant to paragraph (a) of this section, a
   full service FM applicant that will provide the first or second reserved
   channel noncommercial educational (NCE) aural signal received by at least
   10% of the population within the station's 60dBu (1mV/m) service contours
   will be considered to substantially further fair distribution of service
   goals and to be superior to mutually exclusive applicants not proposing that
   level of service, provided that such service to fewer than 2,000 people will
   be considered insignificant. First service to 2,000 or more people will be
   considered superior to second service to a population of any size. If only
   one applicant will provide such first or second service, that applicant will
   be selected as a threshold matter. If more than one applicant will provide
   an equivalent level (first or second) of NCE aural service, the size of the
   population to receive such service from the mutually exclusive applicants
   will be compared. The applicant providing the most people with the highest
   level of service will be awarded a construction permit, if it will provide
   such service to 5,000 or more people than the next best applicant. If none
   of the applicants in a mutually exclusive group would substantially further
   fair distribution goals, all applicants will proceed to examination under a
   point system. If two or more applicants will provide the same level of
   service to an equivalent number of people (differing by less than 5,000),
   only those equivalent applicants will be considered together in a point
   system.

   (c) For a period of four years of on-air operations, an applicant receiving
   a decisive preference pursuant to this section is required to construct and
   operate  technical  facilities substantially as proposed and shall not
   downgrade service to the area on which the preference was based.

   [ 65 FR 36380 , June 8, 2000, as amended at  66 FR 15356 , Mar. 19, 2001]