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]