§  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 § 1.949 of this chapter.

   [ 65 FR 17450 , Apr. 3, 2000]