§ 27.1237   Pro rata allocation of transition costs.

   (a) Self-transitions. EBS licensees that self-transition may seek
   reimbursement for their costs to replace eligible downconverters (see
   § 27.1233(a)) and to migrate video programming and data transmission
   tracks (see § 27.1233(b)) from BRS licensees and lessees, EBS lessees,
   and commercial EBS licensees in the BTA where the center point of the
   EBS licensee's GSA is located. In addition, BRS licensees and lessees,
   EBS lessees, and commercial EBS licensees in the LBS or UBS must
   reimburse the self-transitioning EBS licensee a pro rata share of the
   eligible costs of transitioning EBS licensees, based on the formula in
   paragraph (c) of this section. Eligible costs are listed in § 27.1238.

   (b) Proponent-driven transitions. BRS licensees and lessees, entities
   that lease EBS spectrum for a commercial purpose, and commercial EBS
   licensees must pay their own transition costs. In addition, except for
   MVPD operators that opt-out of the transition, BRS licensees and
   lessees, EBS lessees, and commercial EBS licensees in the LBS or UBS
   must reimburse the proponent a pro rata share of the eligible costs of
   transitioning EBS licensees, based on the formula in paragraph (c) of
   this section. Eligible costs are listed in § 27.1238.

   (c) Formula. The pro rata share shall be based on the following
   formula:
   eCFR graphic er19jn06.000.gif

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   (1) R equals the pro rata share;

   (2) L equals the amount of spectrum used by a BRS licensee or lessee or
   commercial EBS licensee or lessee to provide a commercial service,
   either directly or through a lease agreement with an EBS or BRS
   licensee;

   (3) T equals the total amount of spectrum licensed or leased for
   commercial purposes in the BTA;

   (4) LP equals the population of the geographic service area or BTA
   served by the BRS licensee or lessee or commercial EBS licensee or
   lessee based on the data in the 2000 United States Census; and

   (5) TP equals the population of the BTA based on the data in the 2000
   United States Census.

   [ 71 FR 35193 , June 19, 2006]

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