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Federal Communications Commission FCC 04-167 1 Before the Federal

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Federal Communications Commission FCC 04-167 1 Before the Federal Federal Communications Commission FCC 04-167 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Promoting Efficient Use of Spectrum Through ) WT Docket No. 00-230 Elimination of Barriers to the Development of ) Secondary Markets ) ) SECOND REPORT AND ORDER, ORDER ON RECONSIDERATION, AND SECOND FURTHER NOTICE OF PROPOSED RULEMAKING Adopted: July 8, 2004 Released: September 2, 2004 Comment Date: November 17, 2004 Reply Comment Date: December 17, 2004 By the Commission: Chairman Powell; Commissioners Abernathy and Martin issuing separate statements; Commissioner Adelstein approving in part, dissenting in part, and issuing a statement; Commissioner Copps dissenting and issuing a statement. TABLE OF CONTENTS Heading Paragraph # I. INTRODUCTION.................................................................................................................................. 1 II. EXECUTIVE SUMMARY.................................................................................................................... 4 III. BACKGROUND.................................................................................................................................... 7 IV. SECOND REPORT AND ORDER...................................................................................................... 10 A. Spectrum Leasing Arrangements...................................................................................................10 1. Additional Streamlining of Procedures for Certain Categories of Spectrum Leases .............. 10 a. Immediate approval of certain categories of de facto transfer leases that are subject to our forbearance authority ................................................................................. 11 (i) Background ................................................................................................................ 11 (ii) Discussion .................................................................................................................. 14 b. Immediate approval of certain categories of de facto transfer leases that are not subject to forbearance ....................................................................................................... 38 (i) Background ................................................................................................................ 38 (ii) Discussion .................................................................................................................. 39 c. Applying the immediate approval procedures to short-term de facto transfer leases................................................................................................................................. 42 (i) Background ................................................................................................................ 42 (ii) Discussion .................................................................................................................. 43 1 Federal Communications Commission FCC 04-167 d. Immediate processing of certain categories of spectrum manager leases......................... 46 (i) Background ................................................................................................................ 46 (ii) Discussion .................................................................................................................. 47 2. Extending Spectrum Leasing Policies to Additional Spectrum-Based Services ..................... 51 a. Background....................................................................................................................... 51 b. Discussion......................................................................................................................... 52 3. Spectrum Leasing Policies Applicable to Designated Entity/Entrepreneur Licensees............ 67 a. Background....................................................................................................................... 67 b. Discussion......................................................................................................................... 69 4. Application of the De Facto Control Standard for Spectrum Leasing with regard to Other Issues and Types of Arrangements................................................................................ 83 a. Background....................................................................................................................... 83 b. Discussion......................................................................................................................... 84 B. Policies to Facilitate Advanced Technologies ............................................................................. 85 1. Background ............................................................................................................................. 85 2. Discussion ............................................................................................................................... 86 a. Facilitating advanced technologies within existing regulatory frameworks, including dynamic spectrum leasing arrangements .......................................................... 88 b. Private commons............................................................................................................... 91 C. License Assignments and Transfers of Control ........................................................................... 100 1. Immediate Approval Procedures for Certain Categories of License Assignments and Transfers of Control .............................................................................................................. 100 a. Background..................................................................................................................... 100 b. Discussion....................................................................................................................... 101 2. Extending the Streamlined Processing Policies Relating to License Assignments and Transfers of Control to Additional Wireless Radio Services ................................................ 109 a. Background..................................................................................................................... 109 b. Discussion....................................................................................................................... 110 D. The Commission’s Role in Providing Secondary Markets Information and Facilitating Exchanges .................................................................................................................................... 112 1. Background ........................................................................................................................... 112 2. Discussion ............................................................................................................................. 113 V. ORDER ON RECONSIDERATION ................................................................................................. 116 A. Licensee Responsibility To Ensure That Spectrum Lessees Comply With Commission Policies and Rules........................................................................................................................ 116 1. The licensee’s responsibility to ensure the spectrum lessee’s compliance with Commission policies and rules.............................................................................................. 119 a. Spectrum manager leasing arrangements........................................................................ 121 b. De facto transfer leasing arrangements........................................................................... 123 2. The licensee’s responsibility to terminate a spectrum lease for violations by the spectrum lessee...................................................................................................................... 128 B. Protections for Licensees and Spectrum Lessees in the Event of Termination of the Spectrum Lease or the License .................................................................................................... 132 1. Procedural protections for licensees and spectrum lessees with regard to Commission termination of a spectrum leasing arrangement..................................................................... 132 a. Spectrum manager leasing arrangements........................................................................ 132 b. De facto transfer leasing arrangements........................................................................... 136 2. Protections for spectrum lessees in the event of license termination .................................... 140 C. Licensee Responsibility for Meeting Construction Obligations.................................................. 144 2 Federal Communications Commission FCC 04-167 D. Responsibility for Compliance With Cost-Sharing Obligations for Relocation of Microwave Licensees in Broadband PCS.................................................................................... 147 E. Miscellaneous Additional Clarifications and Revisions .............................................................. 150 VI. SECOND FURTHER NOTICE OF PROPOSED RULEMAKING ................................................ 159 VII............................................................................................................................. CONCLUSION 166 VIII. PROCEDURAL MATTERS..........................................................................................................
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