Sec. 22.942  Limitations on interests in licensees for both channel 
          blocks in an area.

    No person may have a direct or indirect ownership interest in 
licensees for both channel blocks in overlapping cellular geographic 
service areas (CGSAs), unless such interests pose no substantial threat 
to competition. A licensee, a person that owns a controlling interest in 
a licensee, or a person that actually controls a licensee for one 
channel block in a CGSA must not have any direct or indirect ownership 
interest in the licensee, a person that owns a controlling interest in a 
licensee, or a person that actually controls a licensee for the other 
channel block in an overlapping CGSA.
    (a) A direct or indirect ownership interest of 5% or less in both 
systems is automatically excluded from the general rule prohibiting 
multiple ownership interests. Interests of less than 5% are considered 
and are not excluded from the general rule prohibiting multiple 
ownership interests in cases of persons or entities that own a small 
percentage of the licensee but nonetheless actually control the 
licensee, a person that owns a controlling interest in the licensee, or 
a person that actually controls the licensee.
    (b) Divestiture of interests as a result of a transfer of control or 
assignment of authorization must occur prior to consummating the 
transfer or assignment.