§ 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 § 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 § 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 § 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 § 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 § 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
   § 1.927 of this chapter, 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 § 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;  70 FR 61059 , Oct.
   20, 2005]

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