47 U.S.C. § 309 : US Code - Section 309: Application for license

Search 47 U.S.C. § 309 : US Code - Section 309: Application for license

(a) Considerations in granting application
Subject to the provisions of this section, the Commission shall
determine, in the case of each application filed with it to which
section 308 of this title applies, whether the public interest,
convenience, and necessity will be served by the granting of such
application, and, if the Commission, upon examination of such
application and upon consideration of such other matters as the
Commission may officially notice, shall find that public interest,
convenience, and necessity would be served by the granting thereof,
it shall grant such application.
(b) Time of granting application
Except as provided in subsection (c) of this section, no such
application -
(1) for an instrument of authorization in the case of a station
in the broadcasting or common carrier services, or
(2) for an instrument of authorization in the case of a station
in any of the following categories:
(A) industrial radio positioning stations for which
frequencies are assigned on an exclusive basis,
(B) aeronautical en route stations,
(C) aeronautical advisory stations,
(D) airdrome control stations,
(E) aeronautical fixed stations, and
(F) such other stations or classes of stations, not in the
broadcasting or common carrier services, as the Commission
shall by rule prescribe,
shall be granted by the Commission earlier than thirty days
following issuance of public notice by the Commission of the
acceptance for filing of such application or of any substantial
amendment thereof.
(c) Applications not affected by subsection (b)
Subsection (b) of this section shall not apply -
(1) to any minor amendment of an application to which such
subsection is applicable, or
(2) to any application for -
(A) a minor change in the facilities of an authorized
station,
(B) consent to an involuntary assignment or transfer under
section 310(b) of this title or to an assignment or transfer
thereunder which does not involve a substantial change in
ownership or control,
(C) a license under section 319(c) of this title or, pending
application for or grant of such license, any special or
temporary authorization to permit interim operation to
facilitate completion of authorized construction or to provide
substantially the same service as would be authorized by such
license,
(D) extension of time to complete construction of authorized
facilities,
(E) an authorization of facilities for remote pickups, studio
links and similar facilities for use in the operation of a
broadcast station,
(F) authorizations pursuant to section 325(c) of this title
where the programs to be transmitted are special events not of
a continuing nature,
(G) a special temporary authorization for nonbroadcast
operation not to exceed thirty days where no application for
regular operation is contemplated to be filed or not to exceed
sixty days pending the filing of an application for such
regular operation, or
(H) an authorization under any of the proviso clauses of
section 308(a) of this title.
(d) Petition to deny application; time; contents; reply; findings
(1) Any party in interest may file with the Commission a petition
to deny any application (whether as originally filed or as amended)
to which subsection (b) of this section applies at any time prior
to the day of Commission grant thereof without hearing or the day
of formal designation thereof for hearing; except that with respect
to any classification of applications, the Commission from time to
time by rule may specify a shorter period (no less than thirty days
following the issuance of public notice by the Commission of the
acceptance for filing of such application or of any substantial
amendment thereof), which shorter period shall be reasonably
related to the time when the applications would normally be reached
for processing. The petitioner shall serve a copy of such petition
on the applicant. The petition shall contain specific allegations
of fact sufficient to show that the petitioner is a party in
interest and that a grant of the application would be prima facie
inconsistent with subsection (a) of this section (or subsection (k)
of this section in the case of renewal of any broadcast station
license). Such allegations of fact shall, except for those of which
official notice may be taken, be supported by affidavit of a person
or persons with personal knowledge thereof. The applicant shall be
given the opportunity to file a reply in which allegations of fact
or denials thereof shall similarly be supported by affidavit.
(2) If the Commission finds on the basis of the application, the
pleadings filed, or other matters which it may officially notice
that there are no substantial and material questions of fact and
that a grant of the application would be consistent with subsection
(a) of this section (or subsection (k) of this section in the case
of renewal of any broadcast station license), it shall make the
grant, deny the petition, and issue a concise statement of the
reasons for denying the petition, which statement shall dispose of
all substantial issues raised by the petition. If a substantial and
material question of fact is presented or if the Commission for any
reason is unable to find that grant of the application would be
consistent with subsection (a) of this section (or subsection (k)
of this section in the case of renewal of any broadcast station
license), it shall proceed as provided in subsection (e) of this
section.
(e) Hearings; intervention; evidence; burden of proof
If, in the case of any application to which subsection (a) of
this section applies, a substantial and material question of fact
is presented or the Commission for any reason is unable to make the
finding specified in such subsection, it shall formally designate
the application for hearing on the ground or reasons then obtaining
and shall forthwith notify the applicant and all other known
parties in interest of such action and the grounds and reasons
therefor, specifying with particularity the matters and things in
issue but not including issues or requirements phrased generally.
When the Commission has so designated an application for hearing
the parties in interest, if any, who are not notified by the
Commission of such action may acquire the status of a party to the
proceeding thereon by filing a petition for intervention showing
the basis for their interest not more than thirty days after
publication of the hearing issues or any substantial amendment
thereto in the Federal Register. Any hearing subsequently held upon
such application shall be a full hearing in which the applicant and
all other parties in interest shall be permitted to participate.
The burden of proceeding with the introduction of evidence and the
burden of proof shall be upon the applicant, except that with
respect to any issue presented by a petition to deny or a petition
to enlarge the issues, such burdens shall be as determined by the
Commission.
(f) Temporary authorization of temporary operations under
subsection (b)
When an application subject to subsection (b) of this section has
been filed, the Commission, notwithstanding the requirements of
such subsection, may, if the grant of such application is otherwise
authorized by law and if it finds that there are extraordinary
circumstances requiring temporary operations in the public interest
and that delay in the institution of such temporary operations
would seriously prejudice the public interest, grant a temporary
authorization, accompanied by a statement of its reasons therefor,
to permit such temporary operations for a period not exceeding 180
days, and upon making like findings may extend such temporary
authorization for additional periods not to exceed 180 days. When
any such grant of a temporary authorization is made, the Commission
shall give expeditious treatment to any timely filed petition to
deny such application and to any petition for rehearing of such
grant filed under section 405 of this title.
(g) Classification of applications
The Commission is authorized to adopt reasonable classifications
of applications and amendments in order to effectuate the purposes
of this section.
(h) Form and conditions of station licenses
Such station licenses as the Commission may grant shall be in
such general form as it may prescribe, but each license shall
contain, in addition to other provisions, a statement of the
following conditions to which such license shall be subject: (1)
The station license shall not vest in the licensee any right to
operate the station nor any right in the use of the frequencies
designated in the license beyond the term thereof nor in any other
manner than authorized therein; (2) neither the license nor the
right granted thereunder shall be assigned or otherwise transferred
in violation of this chapter; (3) every license issued under this
chapter shall be subject in terms to the right of use or control
conferred by section 606 of this title.
(i) Random selection
(1) General authority. - Except as provided in paragraph (5), if
there is more than one application for any initial license or
construction permit, then the Commission shall have the authority
to grant such license or permit to a qualified applicant through
the use of a system of random selection.
(2) No license or construction permit shall be granted to an
applicant selected pursuant to paragraph (1) unless the Commission
determines the qualifications of such applicant pursuant to
subsection (a) of this section and section 308(b) of this title.
When substantial and material questions of fact exist concerning
such qualifications, the Commission shall conduct a hearing in
order to make such determinations. For the purpose of making such
determinations, the Commission may, by rule, and notwithstanding
any other provision of law -
(A) adopt procedures for the submission of all or part of the
evidence in written form;
(B) delegate the function of presiding at the taking of written
evidence to Commission employees other than administrative law
judges; and
(C) omit the determination required by subsection (a) of this
section with respect to any application other than the one
selected pursuant to paragraph (1).
(3)(A) The Commission shall establish rules and procedures to
ensure that, in the administration of any system of random
selection under this subsection used for granting licenses or
construction permits for any media of mass communications,
significant preferences will be granted to applicants or groups of
applicants, the grant to which of the license or permit would
increase the diversification of ownership of the media of mass
communications. To further diversify the ownership of the media of
mass communications, an additional significant preference shall be
granted to any applicant controlled by a member or members of a
minority group.
(B) The Commission shall have authority to require each qualified
applicant seeking a significant preference under subparagraph (A)
to submit to the Commission such information as may be necessary to
enable the Commission to make a determination regarding whether
such applicant shall be granted such preference. Such information
shall be submitted in such form, at such times, and in accordance
with such procedures, as the Commission may require.
(C) For purposes of this paragraph:
(i) The term "media of mass communications" includes
television, radio, cable television, multipoint distribution
service, direct broadcast satellite service, and other services,
the licensed facilities of which may be substantially devoted
toward providing programming or other information services within
the editorial control of the licensee.
(ii) The term "minority group" includes Blacks, Hispanics,
American Indians, Alaska Natives, Asians, and Pacific Islanders.
(4)(A) The Commission shall, after notice and opportunity for
hearing, prescribe rules establishing a system of random selection
for use by the Commission under this subsection in any instance in
which the Commission, in its discretion, determines that such use
is appropriate for the granting of any license or permit in
accordance with paragraph (1).
(B) The Commission shall have authority to amend such rules from
time to time to the extent necessary to carry out the provisions of
this subsection. Any such amendment shall be made after notice and
opportunity for hearing.
(C) Not later than 180 days after August 10, 1993, the Commission
shall prescribe such transfer disclosures and antitrafficking
restrictions and payment schedules as are necessary to prevent the
unjust enrichment of recipients of licenses or permits as a result
of the methods employed to issue licenses under this subsection.
(5) Termination of authority. - (A) Except as provided in
subparagraph (B), the Commission shall not issue any license or
permit using a system of random selection under this subsection
after July 1, 1997.
(B) Subparagraph (A) of this paragraph shall not apply with
respect to licenses or permits for stations described in section
397(6) of this title.
(j) Use of competitive bidding
(1) General authority
If, consistent with the obligations described in paragraph
(6)(E), mutually exclusive applications are accepted for any
initial license or construction permit, then, except as provided
in paragraph (2), the Commission shall grant the license or
permit to a qualified applicant through a system of competitive
bidding that meets the requirements of this subsection.
(2) Exemptions
The competitive bidding authority granted by this subsection
shall not apply to licenses or construction permits issued by the
Commission -
(A) for public safety radio services, including private
internal radio services used by State and local governments and
non-government entities and including emergency road services
provided by not-for-profit organizations, that -
(i) are used to protect the safety of life, health, or
property; and
(ii) are not made commercially available to the public;
(B) for initial licenses or construction permits for digital
television service given to existing terrestrial broadcast
licensees to replace their analog television service licenses;
or
(C) for stations described in section 397(6) of this title.
(3) Design of systems of competitive bidding
For each class of licenses or permits that the Commission
grants through the use of a competitive bidding system, the
Commission shall, by regulation, establish a competitive bidding
methodology. The Commission shall seek to design and test
multiple alternative methodologies under appropriate
circumstances. The Commission shall, directly or by contract,
provide for the design and conduct (for purposes of testing) of
competitive bidding using a contingent combinatorial bidding
system that permits prospective bidders to bid on combinations or
groups of licenses in a single bid and to enter multiple
alternative bids within a single bidding round. In identifying
classes of licenses and permits to be issued by competitive
bidding, in specifying eligibility and other characteristics of
such licenses and permits, and in designing the methodologies for
use under this subsection, the Commission shall include
safeguards to protect the public interest in the use of the
spectrum and shall seek to promote the purposes specified in
section 151 of this title and the following objectives:
(A) the development and rapid deployment of new technologies,
products, and services for the benefit of the public, including
those residing in rural areas, without administrative or
judicial delays;
(B) promoting economic opportunity and competition and
ensuring that new and innovative technologies are readily
accessible to the American people by avoiding excessive
concentration of licenses and by disseminating licenses among a
wide variety of applicants, including small businesses, rural
telephone companies, and businesses owned by members of
minority groups and women;
(C) recovery for the public of a portion of the value of the
public spectrum resource made available for commercial use and
avoidance of unjust enrichment through the methods employed to
award uses of that resource;
(D) efficient and intensive use of the electromagnetic
spectrum;
(E) ensure that, in the scheduling of any competitive bidding
under this subsection, an adequate period is allowed -
(i) before issuance of bidding rules, to permit notice and
comment on proposed auction procedures; and
(ii) after issuance of bidding rules, to ensure that
interested parties have a sufficient time to develop business
plans, assess market conditions, and evaluate the
availability of equipment for the relevant services; and
(F) for any auction of eligible frequencies described in
section 113(g)(2) of the National Telecommunications and
Information Administration Organization Act (47 U.S.C.
923(g)(2)), the recovery of 110 percent of estimated relocation
costs as provided to the Commission pursuant to section
113(g)(4) of such Act.
(4) Contents of regulations
In prescribing regulations pursuant to paragraph (3), the
Commission shall -
(A) consider alternative payment schedules and methods of
calculation, including lump sums or guaranteed installment
payments, with or without royalty payments, or other schedules
or methods that promote the objectives described in paragraph
(3)(B), and combinations of such schedules and methods;
(B) include performance requirements, such as appropriate
deadlines and penalties for performance failures, to ensure
prompt delivery of service to rural areas, to prevent
stockpiling or warehousing of spectrum by licensees or
permittees, and to promote investment in and rapid deployment
of new technologies and services;
(C) consistent with the public interest, convenience, and
necessity, the purposes of this chapter, and the
characteristics of the proposed service, prescribe area
designations and bandwidth assignments that promote (i) an
equitable distribution of licenses and services among
geographic areas, (ii) economic opportunity for a wide variety
of applicants, including small businesses, rural telephone
companies, and businesses owned by members of minority groups
and women, and (iii) investment in and rapid deployment of new
technologies and services;
(D) ensure that small businesses, rural telephone companies,
and businesses owned by members of minority groups and women
are given the opportunity to participate in the provision of
spectrum-based services, and, for such purposes, consider the
use of tax certificates, bidding preferences, and other
procedures;
(E) require such transfer disclosures and antitrafficking
restrictions and payment schedules as may be necessary to
prevent unjust enrichment as a result of the methods employed
to issue licenses and permits; and
(F) prescribe methods by which a reasonable reserve price
will be required, or a minimum bid will be established, to
obtain any license or permit being assigned pursuant to the
competitive bidding, unless the Commission determines that such
a reserve price or minimum bid is not in the public interest.
(5) Bidder and licensee qualification
No person shall be permitted to participate in a system of
competitive bidding pursuant to this subsection unless such
bidder submits such information and assurances as the Commission
may require to demonstrate that such bidder's application is
acceptable for filing. No license shall be granted to an
applicant selected pursuant to this subsection unless the
Commission determines that the applicant is qualified pursuant to
subsection (a) of this section and sections 308(b) and 310 of
this title. Consistent with the objectives described in paragraph
(3), the Commission shall, by regulation, prescribe expedited
procedures consistent with the procedures authorized by
subsection (i)(2) of this section for the resolution of any
substantial and material issues of fact concerning
qualifications.
(6) Rules of construction
Nothing in this subsection, or in the use of competitive
bidding, shall -
(A) alter spectrum allocation criteria and procedures
established by the other provisions of this chapter;
(B) limit or otherwise affect the requirements of subsection
(h) of this section, section 301, 304, 307, 310, or 606 of this
title, or any other provision of this chapter (other than
subsections (d)(2) and (e) of this section);
(C) diminish the authority of the Commission under the other
provisions of this chapter to regulate or reclaim spectrum
licenses;
(D) be construed to convey any rights, including any
expectation of renewal of a license, that differ from the
rights that apply to other licenses within the same service
that were not issued pursuant to this subsection;
(E) be construed to relieve the Commission of the obligation
in the public interest to continue to use engineering
solutions, negotiation, threshold qualifications, service
regulations, and other means in order to avoid mutual
exclusivity in application and licensing proceedings;
(F) be construed to prohibit the Commission from issuing
nationwide, regional, or local licenses or permits;
(G) be construed to prevent the Commission from awarding
licenses to those persons who make significant contributions to
the development of a new telecommunications service or
technology; or
(H) be construed to relieve any applicant for a license or
permit of the obligation to pay charges imposed pursuant to
section 158 of this title.
(7) Consideration of revenues in public interest determinations
(A) Consideration prohibited
In making a decision pursuant to section 303(c) of this title
to assign a band of frequencies to a use for which licenses or
permits will be issued pursuant to this subsection, and in
prescribing regulations pursuant to paragraph (4)(C) of this
subsection, the Commission may not base a finding of public
interest, convenience, and necessity on the expectation of
Federal revenues from the use of a system of competitive
bidding under this subsection.
(B) Consideration limited
In prescribing regulations pursuant to paragraph (4)(A) of
this subsection, the Commission may not base a finding of
public interest, convenience, and necessity solely or
predominantly on the expectation of Federal revenues from the
use of a system of competitive bidding under this subsection.
(C) Consideration of demand for spectrum not affected
Nothing in this paragraph shall be construed to prevent the
Commission from continuing to consider consumer demand for
spectrum-based services.
(8) Treatment of revenues
(A) General rule
Except as provided in subparagraph (B) or subparagraph (D),
all proceeds from the use of a competitive bidding system under
this subsection shall be deposited in the Treasury in
accordance with chapter 33 of title 31.
(B) Retention of revenues
Notwithstanding subparagraph (A), the salaries and expenses
account of the Commission shall retain as an offsetting
collection such sums as may be necessary from such proceeds for
the costs of developing and implementing the program required
by this subsection. Such offsetting collections shall be
available for obligation subject to the terms and conditions of
the receiving appropriations account, and shall be deposited in
such accounts on a quarterly basis. Such offsetting collections
are authorized to remain available until expended. No sums may
be retained under this subparagraph during any fiscal year
beginning after September 30, 1998, if the annual report of the
Commission under section 154(k) of this title for the second
preceding fiscal year fails to include in the itemized
statement required by paragraph (3) of such section a statement
of each expenditure made for purposes of conducting competitive
bidding under this subsection during such second preceding
fiscal year.
(C) Deposit and use of auction escrow accounts
Any deposits the Commission may require for the qualification
of any person to bid in a system of competitive bidding
pursuant to this subsection shall be deposited in an interest
bearing account at a financial institution designated for
purposes of this subsection by the Commission (after
consultation with the Secretary of the Treasury). Within 45
days following the conclusion of the competitive bidding -
(i) the deposits of successful bidders shall be paid to the
Treasury;
(ii) the deposits of unsuccessful bidders shall be returned
to such bidders; and
(iii) the interest accrued to the account shall be
transferred to the Telecommunications Development Fund
established pursuant to section 614 of this title.
(D) Disposition of cash proceeds
Cash proceeds attributable to the auction of any eligible
frequencies described in section 113(g)(2) of the National
Telecommunications and Information Administration Organization
Act (47 U.S.C. 923(g)(2)) shall be deposited in the Spectrum
Relocation Fund established under section 118 of such Act [47
U.S.C. 928], and shall be available in accordance with that
section.
(9) Use of former Government spectrum
The Commission shall, not later than 5 years after August 10,
1993, issue licenses and permits pursuant to this subsection for
the use of bands of frequencies that -
(A) in the aggregate span not less than 10 megahertz; and
(B) have been reassigned from Government use pursuant to part
B of the National Telecommunications and Information
Administration Organization Act [47 U.S.C. 921 et seq.].
(10) Authority contingent on availability of additional spectrum
(A) Initial conditions
The Commission's authority to issue licenses or permits under
this subsection shall not take effect unless -
(i) the Secretary of Commerce has submitted to the
Commission the report required by section 113(d)(1) of the
National Telecommunications and Information Administration
Organization Act [47 U.S.C. 923(d)(1)];
(ii) such report recommends for immediate reallocation
bands of frequencies that, in the aggregate, span not less
than 50 megahertz;
(iii) such bands of frequencies meet the criteria required
by section 113(a) of such Act [47 U.S.C. 923(a)]; and
(iv) the Commission has completed the rulemaking required
by section 332(c)(1)(D) of this title.
(B) Subsequent conditions
The Commission's authority to issue licenses or permits under
this subsection on and after 2 years after August 10, 1993,
shall cease to be effective if -
(i) the Secretary of Commerce has failed to submit the
report required by section 113(a) of the National
Telecommunications and Information Administration
Organization Act [47 U.S.C. 923(a)];
(ii) the President has failed to withdraw and limit
assignments of frequencies as required by paragraphs (1) and
(2) of section 114(a) of such Act [47 U.S.C. 924(a)];
(iii) the Commission has failed to issue the regulations
required by section 115(a) of such Act [47 U.S.C. 925(a)];
(iv) the Commission has failed to complete and submit to
Congress, not later than 18 months after August 10, 1993, a
study of current and future spectrum needs of State and local
government public safety agencies through the year 2010, and
a specific plan to ensure that adequate frequencies are made
available to public safety licensees; or
(v) the Commission has failed under section 332(c)(3) of
this title to grant or deny within the time required by such
section any petition that a State has filed within 90 days
after August 10, 1993;
until such failure has been corrected.
(11) Termination
The authority of the Commission to grant a license or permit
under this subsection shall expire September 30, 2007.
(12) Evaluation
Not later than September 30, 1997, the Commission shall conduct
a public inquiry and submit to the Congress a report -
(A) containing a statement of the revenues obtained, and a
projection of the future revenues, from the use of competitive
bidding systems under this subsection;
(B) describing the methodologies established by the
Commission pursuant to paragraphs (3) and (4);
(C) comparing the relative advantages and disadvantages of
such methodologies in terms of attaining the objectives
described in such paragraphs;
(D) evaluating whether and to what extent -
(i) competitive bidding significantly improved the
efficiency and effectiveness of the process for granting
radio spectrum licenses;
(ii) competitive bidding facilitated the introduction of
new spectrum-based technologies and the entry of new
companies into the telecommunications market;
(iii) competitive bidding methodologies have secured prompt
delivery of service to rural areas and have adequately
addressed the needs of rural spectrum users; and
(iv) small businesses, rural telephone companies, and
businesses owned by members of minority groups and women were
able to participate successfully in the competitive bidding
process; and
(E) recommending any statutory changes that are needed to
improve the competitive bidding process.
(13) Recovery of value of public spectrum in connection with
pioneer preferences
(A) In general
Notwithstanding paragraph (6)(G), the Commission shall not
award licenses pursuant to a preferential treatment accorded by
the Commission to persons who make significant contributions to
the development of a new telecommunications service or
technology, except in accordance with the requirements of this
paragraph.
(B) Recovery of value
The Commission shall recover for the public a portion of the
value of the public spectrum resource made available to such
person by requiring such person, as a condition for receipt of
the license, to agree to pay a sum determined by -
(i) identifying the winning bids for the licenses that the
Commission determines are most reasonably comparable in terms
of bandwidth, scope of service area, usage restrictions, and
other technical characteristics to the license awarded to
such person, and excluding licenses that the Commission
determines are subject to bidding anomalies due to the award
of preferential treatment;
(ii) dividing each such winning bid by the population of
its service area (hereinafter referred to as the per capita
bid amount);
(iii) computing the average of the per capita bid amounts
for the licenses identified under clause (i);
(iv) reducing such average amount by 15 percent; and
(v) multiplying the amount determined under clause (iv) by
the population of the service area of the license obtained by
such person.
(C) Installments permitted
The Commission shall require such person to pay the sum
required by subparagraph (B) in a lump sum or in guaranteed
installment payments, with or without royalty payments, over a
period of not more than 5 years.
(D) Rulemaking on pioneer preferences
Except with respect to pending applications described in
clause (iv) of this subparagraph, the Commission shall
prescribe regulations specifying the procedures and criteria by
which the Commission will evaluate applications for
preferential treatment in its licensing processes (by
precluding the filing of mutually exclusive applications) for
persons who make significant contributions to the development
of a new service or to the development of new technologies that
substantially enhance an existing service. Such regulations
shall -
(i) specify the procedures and criteria by which the
significance of such contributions will be determined, after
an opportunity for review and verification by experts in the
radio sciences drawn from among persons who are not employees
of the Commission or by any applicant for such preferential
treatment;
(ii) include such other procedures as may be necessary to
prevent unjust enrichment by ensuring that the value of any
such contribution justifies any reduction in the amounts paid
for comparable licenses under this subsection;
(iii) be prescribed not later than 6 months after December
8, 1994;
(iv) not apply to applications that have been accepted for
filing on or before September 1, 1994; and
(v) cease to be effective on the date of the expiration of
the Commission's authority under subparagraph (F).
(E) Implementation with respect to pending applications
In applying this paragraph to any broadband licenses in the
personal communications service awarded pursuant to the
preferential treatment accorded by the Federal Communications
Commission in the Third Report and Order in General Docket 90-
314 (FCC 93-550, released February 3, 1994) -
(i) the Commission shall not reconsider the award of
preferences in such Third Report and Order, and the
Commission shall not delay the grant of licenses based on
such awards more than 15 days following December 8, 1994, and
the award of such preferences and licenses shall not be
subject to administrative or judicial review;
(ii) the Commission shall not alter the bandwidth or
service areas designated for such licenses in such Third
Report and Order;
(iii) except as provided in clause (v), the Commission
shall use, as the most reasonably comparable licenses for
purposes of subparagraph (B)(i), the broadband licenses in
the personal communications service for blocks A and B for
the 20 largest markets (ranked by population) in which no
applicant has obtained preferential treatment;
(iv) for purposes of subparagraph (C), the Commission shall
permit guaranteed installment payments over a period of 5
years, subject to -
(I) the payment only of interest on unpaid balances
during the first 2 years, commencing not later than 30 days
after the award of the license (including any preferential
treatment used in making such award) is final and no longer
subject to administrative or judicial review, except that
no such payment shall be required prior to the date of
completion of the auction of the comparable licenses
described in clause (iii); and
(II) payment of the unpaid balance and interest thereon
after the end of such 2 years in accordance with the
regulations prescribed by the Commission; and
(v) the Commission shall recover with respect to broadband
licenses in the personal communications service an amount
under this paragraph that is equal to not less than
$400,000,000, and if such amount is less than $400,000,000,
the Commission shall recover an amount equal to $400,000,000
by allocating such amount among the holders of such licenses
based on the population of the license areas held by each
licensee.
The Commission shall not include in any amounts required to be
collected under clause (v) the interest on unpaid balances
required to be collected under clause (iv).
(F) Expiration
The authority of the Commission to provide preferential
treatment in licensing procedures (by precluding the filing of
mutually exclusive applications) to persons who make
significant contributions to the development of a new service
or to the development of new technologies that substantially
enhance an existing service shall expire on August 5, 1997.
(G) Effective date
This paragraph shall be effective on December 8, 1994, and
apply to any licenses issued on or after August 1, 1994, by the
Federal Communications Commission pursuant to any licensing
procedure that provides preferential treatment (by precluding
the filing of mutually exclusive applications) to persons who
make significant contributions to the development of a new
service or to the development of new technologies that
substantially enhance an existing service.
(14) Auction of recaptured broadcast television spectrum
(A) Limitations on terms of terrestrial television broadcast
licenses
A television broadcast license that authorizes analog
television service may not be renewed to authorize such service
for a period that extends beyond December 31, 2006.
(B) Extension
The Commission shall extend the date described in
subparagraph (A) for any station that requests such extension
in any television market if the Commission finds that -
(i) one or more of the stations in such market that are
licensed to or affiliated with one of the four largest
national television networks are not broadcasting a digital
television service signal, and the Commission finds that each
such station has exercised due diligence and satisfies the
conditions for an extension of the Commission's applicable
construction deadlines for digital television service in that
market;
(ii) digital-to-analog converter technology is not
generally available in such market; or
(iii) in any market in which an extension is not available
under clause (i) or (ii), 15 percent or more of the
television households in such market -
(I) do not subscribe to a multichannel video programming
distributor (as defined in section 522 of this title) that
carries one of the digital television service programming
channels of each of the television stations broadcasting
such a channel in such market; and
(II) do not have either -
(a) at least one television receiver capable of
receiving the digital television service signals of the
television stations licensed in such market; or
(b) at least one television receiver of analog
television service signals equipped with digital-to-
analog converter technology capable of receiving the
digital television service signals of the television
stations licensed in such market.
(C) Spectrum reversion and resale
(i) The Commission shall -
(I) ensure that, as licenses for analog television service
expire pursuant to subparagraph (A) or (B), each licensee
shall cease using electromagnetic spectrum assigned to such
service according to the Commission's direction; and
(II) reclaim and organize the electromagnetic spectrum in a
manner consistent with the objectives described in paragraph
(3) of this subsection.
(ii) Licensees for new services occupying spectrum reclaimed
pursuant to clause (i) shall be assigned in accordance with
this subsection.
(D) Certain limitations on qualified bidders prohibited
In prescribing any regulations relating to the qualification
of bidders for spectrum reclaimed pursuant to subparagraph
(C)(i), the Commission, for any license that may be used for
any digital television service where the grade A contour of the
station is projected to encompass the entirety of a city with a
population in excess of 400,000 (as determined using the 1990
decennial census), shall not -
(i) preclude any party from being a qualified bidder for
such spectrum on the basis of -
(I) the Commission's duopoly rule (47 C.F.R. 73.3555(b));
or
(II) the Commission's newspaper cross-ownership rule (47
C.F.R. 73.3555(d)); or
(ii) apply either such rule to preclude such a party that
is a winning bidder in a competitive bidding for such
spectrum from using such spectrum for digital television
service.
(15) (!1) Commission to determine timing of auctions
(A) Commission authority
Subject to the provisions of this subsection (including
paragraph (11)), but notwithstanding any other provision of
law, the Commission shall determine the timing of and deadlines
for the conduct of competitive bidding under this subsection,
including the timing of and deadlines for qualifying for
bidding; conducting auctions; collecting, depositing, and
reporting revenues; and completing licensing processes and
assigning licenses.
(B) Termination of portions of auctions 31 and 44
Except as provided in subparagraph (C), the Commission shall
not commence or conduct auctions 31 and 44 on June 19, 2002, as
specified in the public notices of March 19, 2002, and March
20, 2002 (DA 02-659 and DA 02-563).
(C) Exception
(i) Blocks excepted
Subparagraph (B) shall not apply to the auction of -
(I) the C-block of licenses on the bands of frequencies
located at 710-716 megahertz, and 740-746 megahertz; or
(II) the D-block of licenses on the bands of frequencies
located at 716-722 megahertz.
(ii) Eligible bidders
The entities that shall be eligible to bid in the auction
of the C-block and D-block licenses described in clause (i)
shall be those entities that were qualified entities, and
that submitted applications to participate in auction 44, by
May 8, 2002, as part of the original auction 44 short form
filing deadline.
(iii) Auction deadlines for excepted blocks
Notwithstanding subparagraph (B), the auction of the C-
block and D-block licenses described in clause (i) shall be
commenced no earlier than August 19, 2002, and no later than
September 19, 2002, and the proceeds of such auction shall be
deposited in accordance with paragraph (8) not later than
December 31, 2002.
(iv) Report
Within one year after June 19, 2002, the Commission shall
submit a report to Congress -
(I) specifying when the Commission intends to reschedule
auctions 31 and 44 (other than the blocks excepted by
clause (i)); and
(II) describing the progress made by the Commission in
the digital television transition and in the assignment and
allocation of additional spectrum for advanced mobile
communications services that warrants the scheduling of
such auctions.
(D) Return of payments
Within one month after June 19, 2002, the Commission shall
return to the bidders for licenses in the A-block, B-block, and
E-block of auction 44 the full amount of all upfront payments
made by such bidders for such licenses.
(15) (!1) Special auction provisions for eligible frequencies
(A) Special regulations
The Commission shall revise the regulations prescribed under
paragraph (4)(F) of this subsection to prescribe methods by
which the total cash proceeds from any auction of eligible
frequencies described in section 113(g)(2) of the National
Telecommunications and Information Administration Organization
Act (47 U.S.C. 923(g)(2)) shall at least equal 110 percent of
the total estimated relocation costs provided to the Commission
pursuant to section 113(g)(4) of such Act.
(B) Conclusion of auctions contingent on minimum proceeds
The Commission shall not conclude any auction of eligible
frequencies described in section 113(g)(2) of such Act [47
U.S.C. 923(g)(2)] if the total cash proceeds attributable to
such spectrum are less than 110 percent of the total estimated
relocation costs provided to the Commission pursuant to section
113(g)(4) of such Act. If the Commission is unable to conclude
an auction for the foregoing reason, the Commission shall
cancel the auction, return within 45 days after the auction
cancellation date any deposits from participating bidders held
in escrow, and absolve such bidders from any obligation to the
United States to bid in any subsequent reauction of such
spectrum.
(C) Authority to issue prior to deauthorization
In any auction conducted under the regulations required by
subparagraph (A), the Commission may grant a license assigned
for the use of eligible frequencies prior to the termination of
an eligible Federal entity's authorization. However, the
Commission shall condition such license by requiring that the
licensee cannot cause harmful interference to such Federal
entity until such entity's authorization has been terminated by
the National Telecommunications and Information Administration.
(k) Broadcast station renewal procedures
(1) Standards for renewal
If the licensee of a broadcast station submits an application
to the Commission for renewal of such license, the Commission
shall grant the application if it finds, with respect to that
station, during the preceding term of its license -
(A) the station has served the public interest, convenience,
and necessity;
(B) there have been no serious violations by the licensee of
this chapter or the rules and regulations of the Commission;
and
(C) there have been no other violations by the licensee of
this chapter or the rules and regulations of the Commission
which, taken together, would constitute a pattern of abuse.
(2) Consequence of failure to meet standard
If any licensee of a broadcast station fails to meet the
requirements of this subsection, the Commission may deny the
application for renewal in accordance with paragraph (3), or
grant such application on terms and conditions as are
appropriate, including renewal for a term less than the maximum
otherwise permitted.
(3) Standards for denial
If the Commission determines, after notice and opportunity for
a hearing as provided in subsection (e) of this section, that a
licensee has failed to meet the requirements specified in
paragraph (1) and that no mitigating factors justify the
imposition of lesser sanctions, the Commission shall -
(A) issue an order denying the renewal application filed by
such licensee under section 308 of this title; and
(B) only thereafter accept and consider such applications for
a construction permit as may be filed under section 308 of this
title specifying the channel or broadcasting facilities of the
former licensee.
(4) Competitor consideration prohibited
In making the determinations specified in paragraph (1) or (2),
the Commission shall not consider whether the public interest,
convenience, and necessity might be served by the grant of a
license to a person other than the renewal applicant.
(l) Applicability of competitive bidding to pending comparative
licensing cases
With respect to competing applications for initial licenses or
construction permits for commercial radio or television stations
that were filed with the Commission before July 1, 1997, the
Commission shall -
(1) have the authority to conduct a competitive bidding
proceeding pursuant to subsection (j) of this section to assign
such license or permit;
(2) treat the persons filing such applications as the only
persons eligible to be qualified bidders for purposes of such
proceeding; and
(3) waive any provisions of its regulations necessary to permit
such persons to enter an agreement to procure the removal of a
conflict between their applications during the 180-day period
beginning on August 5, 1997.