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.
   This section also sets forth the Phase II process applicable to
   applications to serve the Gulf of Mexico Coastal Zone.

   (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.

   (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;  67 FR 9610 , Mar. 4, 2002]