§  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:

   dkm = 2.53 × hm0.34 × p0.17

   where dkm is the radial distance in kilometers,

   hm 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]