Sec.  90.725   Construction requirements for Phase I licensees.

   (a) Licensees granted commercial nationwide authorizations will be required
   to construct base stations and placed those base stations in operation as
   follows:

   (1) In at least 10 percent of the geographic areas designated in the
   application within two years of initial license grant, including base
   stations in at least seven urban areas listed in  Sec. 90.741 of this part;

   (2) In at least 40 percent of the geographic areas designated in the
   application within four years of initial license grant, including base
   stations in at least 28 urban areas listed in  Sec. 90.741 of this part;

   (3) In at least 70 percent of the geographic areas designated in the
   application within six years of initial license grant, including base
   stations in at least 28 urban areas listed in  Sec. 90.741 of this part;

   (4) In all geographic areas designated in the application within ten years
   of initial license grant, including base stations in at least 28 urban areas
   listed in  Sec. 90.741 of this part.

   (b) Licensees not meeting the two and four year criteria shall lose the
   entire authorization, but will be permitted a six month period to convert
   the system to non-nationwide channels, if such channels are available.

   (c) Licensees not meeting the six and ten year criteria shall lose the
   authorizations for the facilities not constructed, but will retain
   exclusivity for constructed facilities.

   (d) Each commercial nationwide licensee must file a system progress report
   on or before the anniversary date of the grant of its license after 2, 4, 6
   and 10 years, demonstrating compliance with the relevant construction
   benchmark criteria.

   (1) An overall status report of the system, that must include, but need not
   be limited to:

   (i) A list of all sites at which base stations have been constructed, with
   antenna heights and effective radiated power specified for each site;

   (ii) A list of all other known base station sites at which construction has
   not been completed; and

   (iii) A construction and operational schedule for the next five-year period,
   including any known changes to the plan for construction and operation
   submitted with the licensee's original application for the system.

   (2) An analysis of the system's compliance with the requirements of
   paragraph (a) of this section, with documentation to support representations
   of completed construction, including, but not limited to:

   (i) Equipment purchase orders and contracts;

   (ii) Lease or purchase contracts relating to antenna site arrangements;

   (iii) Equipment and antenna identification (serial) numbers; and

   (iv) Service agreements and visits.

   (e) Beginning with its second license term, each nationwide licensee must
   file a progress report once every five years on the anniversary date of the
   grant of the first renewal of its authorization, including the information
   required by paragraph (d)(1) of this section.

   (f) Licensees authorized Phase I non-nationwide systems, or authorized on
   Channels 161 through 170 or Channels 181 through 185, must construct their
   systems (i.e., have all specified base stations constructed with all
   channels) and place their systems in operation, or commence service in
   accordance with the provisions of  Sec. 90.167, within twelve months of the
   initial license grant date. Authorizations for systems not constructed and
   placed in operation, or having commenced service, within twelve months from
   the date of initial license grant cancel automatically.

   (g) A licensee that loses authorization for some or all of its channels due
   to failure to meet construction deadlines or benchmarks may not reapply for
   nationwide channels in the same category or for non-nationwide channels in
   the same category in the same geographic area for one year from the date the
   Commission takes final action affirming that those channels have been
   cancelled.

   (h) The requirements and conditions of paragraphs (a) through (e) and
   paragraph (g) of this section apply to nationwide licensees that construct
   and operate stations for fixed or paging operations on a primary basis
   instead of, or in addition to, stations for land mobile operations on a
   primary basis except that, in satisfying the base station construction and
   placed in operation requirements of paragraph (a) of this section and the
   system progress report requirements of paragraphs (d) and (e) of this
   section, licensees operating stations for fixed operation on a primary basis
   instead of, or in addition to, stations for land mobile or paging operations
   on a primary basis in a given geographic area may demonstrate how such fixed
   stations are providing substantial service to the public in those geographic
   areas.

   [ 56 FR 19603 , Apr. 29, 1991, as amended at  56 FR 32517 , July 17, 1991;  57 FR 32450 , July 22, 1992;  58 FR 36363 , July 7, 1993;  62 FR 15996 , Apr. 3, 1997;
    63 FR 49295 , Sept. 15, 1998]