§ 95.823   Geographic partitioning and spectrum disaggregation.

   (a)  Eligibility.  Parties  seeking  Commission approval of geographic
   partitioning  or spectrum disaggregation of 218-219 MHz Service system
   licenses shall request an authorization for partial assignment of license
   pursuant to § 1.948 of this chapter.

   (b) Technical standards—(1) Partitioning. In the case of partitioning,
   requests for authorization of partial assignment of a license must include,
   as  attachments,  a  description of the partitioned service area and a
   calculation  of the population of the partitioned service area and the
   licensed geographic service area. The partitioned service area shall be
   defined  by coordinate points at every 3 seconds along the partitioned
   service area unless an FCC-recognized service area (i.e. Economic Areas) is
   utilized or county lines are followed. The geographic coordinates must be
   specified  in  degrees, minutes, and seconds, to the nearest second of
   latitude and longitude, and must be based upon the 1983 North American Datum
   (NAD83). In the case where an FCC-recognized service area or county lines
   are utilized, applicants need only list the specific area(s) (through use of
   FCC designations or county names) that constitute the partitioned area.

   (2) Disaggregation. Spectrum maybe disaggregated in any amount.

   (3) Combined partitioning and disaggregation. The Commission will consider
   requests for partial assignments of licenses that propose combinations of
   partitioning and disaggregation.

   (c) Provisions applicable to designated entities—(1) Parties not qualified
   for installment payment plans. (i) When a winning bidder (partitionor or
   disaggregator) that elected to pay for its license through an installment
   payment plan partitions its license or disaggregates spectrum to another
   party  (partitionee  or  disaggregatee)  that would not qualify for an
   installment payment plan, or elects not to pay for its share of the license
   through installment payments, the outstanding principal balance owed by the
   partitionor or disaggregator shall be apportioned according to § 1.2111(e)(3)
   of this chapter. The partitionor or disaggregator is responsible for accrued
   and unpaid interest through and including the consummation date.

   (ii) The partitionee or disaggregatee shall, as a condition of the approval
   of the partial assignment application, pay its entire pro rata amount of the
   outstanding principal balance on or before the consummation date. Failure to
   meet this condition will result in cancellation of the grant of the partial
   assignment application.

   (iii) The partitionor or disaggregator shall be permitted to continue to pay
   its pro rata share of the outstanding balance and, if applicable, shall
   receive loan documents evidencing the partitioning and disaggregation. The
   original interest rate, established pursuant to § 1.2110(g)(3)(i) of this
   chapter at the time of the grant of the initial license in the market, shall
   continue to be applied to the partitionor's or disaggregator's portion of
   the remaining government obligation.

   (iv) A default on the partitionor's or disaggregator's payment obligation
   will affect only the partitionor's or disaggregator's portion of the market.

   (2) Parties qualified for installment payment plans.

   (i) Where both parties to a partitioning or disaggregation agreement qualify
   for installment payments, the partitionee or disaggregatee will be permitted
   to make installment payments on its portion of the remaining government
   obligation.

   (ii) Each party may be required, as a condition to approval of the partial
   assignment application, to execute loan documents agreeing to pay its pro
   rata  portion of the outstanding principal balance due, as apportioned
   according to § 1.2111(e)(3) of this chapter, based upon the installment
   payment terms for which it qualifies under the rules. Failure by either
   party to meet this condition will result in the automatic cancellation of
   the  grant  of  the partial assignment application. The interest rate,
   established pursuant to § 1.2110(f)(3)(i) of this chapter at the time of the
   grant of the initial license in the market, shall continue to be applied to
   both parties' portion of the balance due. Each party will receive a license
   for its portion of the partitioned market.

   (iii) A default on an obligation will affect only that portion of the market
   area held by the defaulting party.

   (d)  Construction requirements—(1) Partitioning. Partial assignors and
   assignees for license partitioning have two options to meet construction
   requirements. Under the first option, the partitionor and partitionee would
   each  certify  that  they  will  independently  satisfy the applicable
   construction  requirements set forth in § 95.833 of this part for their
   respective  partitioned  areas.  If either licensee failed to meet its
   requirement in § 95.833 of this part, only the non-performing licensee's
   renewal application would be subject to dismissal. Under the second option,
   the partitionor certifies that it has met or will meet the requirement in
   § 95.833 of this part for the entire market. If the partitionor fails to meet
   the  requirement  in  § 95.833  of this part, however, only its renewal
   application would be subject to forfeiture at renewal.

   (2)  Disaggregation.  Partial  assignors  and  assignees  for  license
   disaggregation have two options to meet construction requirements. Under the
   first option, the disaggregator and disaggregatee would certify that they
   each will share responsibility for meeting the applicable construction
   requirements set forth in § 95.833 of this part for the geographic service
   area. If parties choose this option and either party fails to do so, both
   licenses would be subject to forfeiture at renewal. The second option would
   allow  the  parties  to  agree  that  either  the disaggregator or the
   disaggregatee would be responsible for meeting the requirement in § 95.833 of
   this part for the geographic service area. If parties choose this option,
   and the party responsible for meeting the construction requirement fails to
   do so, only the license of the non-performing party would be subject to
   forfeiture at renewal.

   (3)  All  applications  requesting  partial assignments of license for
   partitioning  or  disaggregation  must  include  the  above-referenced
   certification as to which of the construction options is selected.

   (4) Responsible parties must submit supporting documents showing compliance
   with  the  respective construction requirements within the appropriate
   construction benchmarks set forth in § 95.833 of this part.

   [ 64 FR 59662 , Nov. 3, 1999, as amended at  67 FR 46378 , July 9, 2002]

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