Goto Section: 24.713 | 24.716 | Table of Contents
Revised as of September 1, 2021
Goto Year:2020 |
§ 24.714 Partitioned licenses and disaggregated spectrum.
(a) Eligibility. (1) Parties seeking approval for partitioning and
disaggregation shall request an authorization for partial assignment of
a license pursuant to § 24.839.
(2) Broadband PCS licensees in spectrum blocks A, B, D, and E and
broadband PCS C and F block licenses not subject to the eligibility
requirements of § 24.709 may apply to partition their licensed
geographic service area or disaggregate their licensed spectrum at any
time following the grant of their licenses.
(3) Broadband PCS licensees that acquired C or F block licenses in
closed bidding subject to the eligibility requirements of § 24.709 may
partition their licensed geographic service area or disaggregate their
licensed spectrum at any time to an entity that meets the eligibility
criteria set forth in § 24.709 at the time the request for partial
assignment of license is filed or to an entity that holds license(s)
for frequency blocks C and F that met the eligibility criteria set
forth in § 24.709 at the time of receipt of such license(s). Partial
assignment applications seeking partitioning or disaggregation of
broadband PCS licenses in spectrum blocks C and F must include an
attachment demonstrating compliance with this section.
(b) Technical standards—(1) Partitioning. In the case of partitioning,
applicants and licensees must file FCC Form 603 pursuant to § 1.948 of
this chapter and list the partitioned service area on a schedule to the
application. 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).
(2) Disaggregation. Spectrum may be disaggregated in any amount.
(3) Combined partitioning and disaggregation. The Commission will
consider requests for partial assignment of licenses that propose
combinations of partitioning and disaggregation.
(c) Installment payments—(1) Apportioning the balance on installment
payment plans. When a winning bidder elects to pay for its license
through an installment payment plan pursuant to § 1.2110(g) of this
chapter or § 24.716, and partitions its licensed area or disaggregates
spectrum to another party, the outstanding balance owed by the licensee
on its installment payment plan (including accrued and unpaid interest)
shall be apportioned between the licensee and partitionee or
disaggregatee. Both parties will be responsible for paying their
proportionate share of the outstanding balance to the U.S. Treasury. In
the case of partitioning, the balance shall be apportioned based upon
the ratio of the population of the partitioned area to the population
of the entire original license area calculated based upon the most
recent census data. In the case of disaggregation, the balance shall be
apportioned based upon the ratio of the amount of spectrum
disaggregated to the amount of spectrum allocated to the licensed area.
(2) Parties not qualified for installment payment plans. (i) When a
winning bidder elects to pay for its license through an installment
payment plan, and partitions its license or disaggregates spectrum to
another party that would not qualify for an installment payment plan or
elects not to pay its share of the license through installment
payments, the outstanding balance owed by the licensee (including
accrued and unpaid interest shall be apportioned according to
(ii) The partitionee or disaggregatee shall, as a condition of the
approval of the partial assignment application, pay its entire pro rata
amount within 30 days of Public Notice conditionally granting the
partial assignment application. Failure to meet this condition will
result in a rescission of the grant of the partial assignment
(iii) The licensee shall be permitted to continue to pay its pro rata
share of the outstanding balance and shall receive new financing
documents (promissory note, security agreement) with a revised payment
obligation, based on the remaining amount of time on the original
installment payment schedule. These financing documents will replace
the licensee's existing financing documents, which shall be marked
“superseded” and returned to the licensee upon receipt of the new
financing documents. 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
licensee's portion of the remaining government obligation. The
Commission will require, as a further condition to approval of the
partial assignment application, that the licensee execute and return to
the U.S. Treasury the new financing documents within 30 days of the
Public Notice conditionally granting the partial assignment
application. Failure to meet this condition will result in the
automatic cancellation of the grant of the partial assignment
(iv) A default on the licensee's payment obligation will only affect
the licensee's portion of the market.
(3) 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 obligations, as calculated according to § 24.714(c)(1).
(ii) Each party will be required, as a condition to approval of the
partial assignment application, to execute separate financing documents
(promissory note, security agreement) agreeing to pay their pro rata
portion of the balance due (including accrued and unpaid interest)
based upon the installment payment terms for which they qualify under
the rules. The financing documents must be returned to the U.S.
Treasury within thirty (30) days of the Public Notice conditionally
granting the partial assignment application. 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(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 both parties' portion of the balance due. Each party will
receive a license for their portion of the partitioned market or
(iii) A default on an obligation will only affect that portion of the
market area held by the defaulting party.
(iv) Partitionees and disaggregatees that qualify for installment
payment plans may elect to pay some of their pro rata portion of the
balance due in a lump sum payment to the U.S. Treasury and to pay the
remaining portion of the balance due pursuant to an installment payment
(d) License term. The license term for a partitioned license area and
for disaggregated spectrum shall be the remainder of the original
licensee's license term as provided for in § 24.15.
[ 62 FR 661 , Jan. 6, 1997, as amended at 63 FR 68953 , Dec. 14, 1998; 65 FR 53638 , Sept. 5, 2000; 67 FR 45371 , July 9, 2002; 68 FR 42999 , July
21, 2003; 82 FR 41547 , Sept. 1, 2017]
Goto Section: 24.713 | 24.716
Goto Year: 2020 |
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