Sec. 22.949  Unserved area licensing process.

    This section sets forth the process for licensing unserved areas in 
cellular markets on channel blocks for which the five year build-out 
period has expired. This process has two phases: Phase I and Phase II.
    (a) Phase I. Phase I is a one-time process that provides an 
opportunity for eligible parties to file competing applications for 
authority to operate a new cellular system in or to expand an existing 
cellular system into unserved areas (Phase I initial applications) as 
soon as these areas become available. In addition, each licensee whose 
Phase I initial application is granted is afforded one opportunity 
during the Phase I process to file an application proposing major 
modifications to the cellular system authorized by that grant (a Phase I 
major modification application), without being subject to competing 
applications.
    (1) Phase I initial applications must be filed on the 31st day after 
the expiration of the five year build-out period of the authorized 
system(s) on the channel block requested in the market containing the 
unserved area.
    (i) Each Phase I application must request authorization for one and 
only one cellular geographic service area (CGSA) in one and only one 
cellular market.
    (ii) Applicants must not file more than one Phase I initial 
application for any cellular market.
    (iii) Phase I initial applications must not propose any de minimis 
or contract service area boundary (SAB) extensions.
    (2) Only one Phase I initial application is granted on each channel 
block in each market. Consequently, whenever two or more acceptable 
Phase I initial applications are timely filed in the same market on the 
same channel block, such Phase I initial applications are mutually 
exclusive, regardless of any other considerations such as the technical 
proposals. In order to determine which of such mutually exclusive Phase 
I initial applications to grant, the Commission administers competitive 
bidding procedures in accordance with subpart Q of part 1 of this 
chapter. After such procedures, the application of the winning bidder 
may be granted and the applications excluded by that grant may be 
dismissed without prejudice.

    Note: Notwithstanding the provisions of Sec. 22.949(a)(2), mutually 
exclusive Phase I initial applications that were filed between March 10, 
1993 and July 25, 1993, inclusive, are to be included in a random 
selection process, following which the selected application may be 
granted and the applications excluded by that grant may be dismissed 
without prejudice.

    (3) Phase I major modification applications (applications filed 
during Phase I that propose major modifications to cellular systems 
authorized by the grant of Phase I initial applications) must be filed 
no later than 90 days after the grant of the Phase I initial 
application. Each Phase I licensee may file only one Phase I major 
modification application. The FCC will not accept any competing 
applications in response to a Phase I major modification application. 
Phase I licensees may not sell to a third party any rights to apply for 
unserved area.

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    (i) Phase I major modification applications may propose de minimis 
or contract SAB extensions; provided that a contract SAB extension into 
an adjacent market may be proposed only if, at the time the Phase I 
major modification application is filed, the licensee in the adjacent 
market (on the requested channel block) has the right to enter into such 
a contract (see Sec. 22.912(c)).
    (ii) Phase I major modification application may propose a CGSA that 
is not contiguous with the authorized or proposed CGSA, provided that 
the non-contiguous CGSA meets the minimum coverage requirement of 
Sec. 22.951.
    (4) Phase I licensees may also file applications for or 
notifications of minor modifications to its system. However, such minor 
modifications may not reduce the size of the CGSA below the minimum 
coverage requirement of Sec. 22.951.
    (b) Phase II. Phase II is an on-going filing process that allows 
eligible parties to apply for any unserved areas that may remain in a 
market after the Phase I process is complete.
    (1) If a Phase I initial application is granted for a market and 
channel block, Phase II applications (applications for authority to 
operate a cellular system in any remaining unserved area) for that 
market and channel block may be filed on or after the 121st day after 
the Phase I application was granted. If no Phase I initial applications 
are granted for a market and channel block, Phase II applications for 
that market and channel block may be filed on or after the 31st day 
after the FCC dismissed the last pending Phase I application. If no 
Phase I initial applications are received for a market and channel 
block, Phase II applications for that market and channel block may be 
filed on or after the 32nd day after the expiration of the relevant 
five-year build-out period.
    (2) There is no limit to the number of Phase II applications that 
may be granted on each channel block in each market. Consequently, Phase 
II applications are mutually exclusive only if the proposed CGSAs would 
overlap. Mutually exclusive applications are processed using the general 
procedures in Sec. 22.131.
    (3) Phase II applications may propose a CGSA covering more than one 
cellular market. Each Phase II application must request authorization 
for one and only one CGSA. Phase II applications may propose de minimis 
and contract SAB extensions.
    (c) Settlements among some, but not all, applicants with mutually 
exclusive applications for unserved areas (partial settlements) are 
prohibited. Settlements among all applicants with mutually exclusive 
applications (full settlements) are allowed and must be filed no later 
than the date that the FCC Form 175 (short-form) is filed.
    (d) Limitations on amendments. Notwithstanding the provisions of 
Sec. 22.122, Phase I applications are subject to the following 
additional limitations in regard to the filing of amendments.
    (1) The Commission will not accept amendments (of any type) to 
mutually exclusive Phase I applications prior to the conclusion of the 
competitive bidding process.
    (2) The FCC will not accept major amendments to Phase I 
applications.
    (3) Minor amendments required by Sec. 1.65 of this chapter must be 
filed no later than thirty (30) days after public notice announcing the 
results of the competitive bidding process.
[ 59 FR 59507 , Nov. 17, 1994, as amended at  59 FR 59956 , Nov. 21, 1994; 
 61 FR 58339 , Nov. 14, 1996]