Sec. 101.1011  Construction requirements and criteria for renewal 
          expectancy.

    (a) LMDS licensees must make a showing of ``substantial service'' in 
their license area within ten years of being licensed. ``Substantial'' 
service is defined as service which is sound, favorable, and 
substantially above a level of mediocre service which might minimally 
warrant renewal. Failure by any licensee to meet this requirement will 
result in forfeiture of the license and

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the licensee will be ineligible to regain it.
    (b) A renewal applicant involved in a comparative renewal proceeding 
shall receive a preference, commonly referred to as a renewal 
expectancy, that is the most important comparative factor to be 
considered in the proceeding as long as the applicant's past record for 
the relevant license period demonstrates that:
    (1) The renewal applicant has provided ``substantial'' service 
during its past license term; and
    (2) The renewal applicant has substantially complied with applicable 
FCC rules, policies, and the Communications Act of 1934, as amended.
    (c) In order to establish its right to a renewal expectancy, an LMDS 
renewal applicant involved in a comparative renewal proceeding must 
submit a showing explaining why it should receive a renewal expectancy. 
At a minimum, this showing must include:
    (1) A description of its current service in terms of geographic 
coverage and population served:
    (2) An explanation of its record of expansion, including a timetable 
of new construction to meet changes in demand for service:
    (3) A description of its investments in its LMDS system; and
    (4) Copies of all FCC orders finding the licensee to have violated 
the Communications Act or any FCC rule or policy; and a list of any 
pending proceedings that relate to any matter described in this 
paragraph.
    (d) In making its showing of entitlement to a renewal expectancy, a 
renewal applicant may claim credit for any system modification 
applications that were pending on the date it filed its renewal 
application. Such credit will not be allowed if the modification 
application is dismissed or denied.