Being not a regular follower of LWIN, could you enlighten me on exactly what "build out" means? Breaking ground? Ready to launch?
Well, build out requirements are not LWIN specific. When you post the winning bid in a given Market, either BTA, MTA, et al, You are bidding on a "USE PERMIT" called a license" that allows you to use the US Govts spectrum, for a given period, as long as you comply with the rules and the terms of the auction. If you don't comply, then the FCC has every right to revoke your "Use Permit".
Somehow, some courts, and Nextwave, believe that the underlying spectrum afforded by these USE PERMITS actually become the physical property of the Auction winner. Which I suspect will all get straightened out in the next year. (Another story altogether).
One of the many, many rules regarding a given auction winners ability to continue to employ the USE PERMIT is a rule that says they must provide "service" to a certain percentage of their licensed POP's, (based on Census data), in a given time frame. Typically 5 years is the first measurement date.
The first measurement date is 5 years from the date the "USE PERMIT" was first granted.
The Rules state the following:
47 C.F.R. § 24.203,
§ 24.203 Construction requirements.
(a) Licensees of 30 MHz blocks must serve with a signal level sufficient to provide adequate service to at least one-third of the population in their licensed area within five years of being licensed and two-thirds of the population in their licensed area within 10 years of being licensed. Licensees may choose to define population using the 1990 census or the 2000 census. Failure by any licensee to meet these requirements will result in forfeiture or non- renewal of the license and the licensee will be ineligible to regain it.
(b) Licensees of 10 MHz blocks, including 10 MHz C block licenses reconfigured pursuant to Amendment of the Commission's Rules Regarding Installment Payment Financing for Personal Communications Services (PCS) Licensees, WT Docket No. 97-82, Sixth Report and Order, FCC 00-313, and 15 MHz blocks resulting from the disaggregation option as provided in the Commission's Rules Regarding Installment payment Financing for Personal Communications Services (PCS) Licensees, Second Report and Order and Further Notice of Proposed Rule Making, WT Docket 97-82, 12 FCC Rcd 16436 (1997), as modified by Order on Reconsideration of the Second Report and Order, WT Docket 97-82, 13 FCC Rcd 8345 (1998), must serve with a signal level sufficient to provide adequate service to at least one-quarter of the population in their licensed area within five years of being licensed, or make a showing of substantial service in their licensed area within five years of being licensed. Population is defined as the 1990 population census. Licensees may elect to use the 2000 population census to determine the five-year construction requirement. Failure by any licensee to meet these requirements will result in forfeiture of the license and the licensee will be ineligible to regain it.
The reason the FCC does so is to guarantee that the spectrum is being put to further the public's interest.
However, the wording of the law is "very vague".
For example. "must serve with a signal level sufficient to provide adequate service to at least one-quarter of the population"
So many licensee's (including LWIN) interpret that to mean they must provide a signal level, that is sufficient to provide adequate service. Not actually Provide a Service.
This is basicaly what Nextwave has done in almost all of their markets. (Even though their press release was worded to make you think they were actaully at complete buildout launch level vs. what is known as a "Protection Build".
Hence a Protection Build-out means that the holder of the license has a handful base stations blasting out RF that is capable of providing service to the minimal population coverage as required by the terms of their USE PERMIT.
For example:
Here is the Coverage Map of an upcoming Cricket competitor as a Flat Rate CDMA provider in Buffalo, NY called Devon Communications. (Affiliated with Adelphia Com.)
wtbwww05.fcc.gov:80/download/0177426046340658555964737.pdf
As you can see. They only have two 3 sector cell sites lit. But are claiming they meet the 5 year build out requirements. (We both know you could not provide any real service to Buffalo with only 2 Cell Towers.). In addition there is probably no interconnect to a switch, or even backhaul from the Cell Towers. Just blasting RF out.
Here is their (Devon's) engineering statement.
wtbwww05.fcc.gov:80/download/0177426036340658555964737.pdf
Here is LWIN's Engineering Statement and Coverage Map for a Protection Build in Utica
wtbwww05.fcc.gov:80/download/0177424432594152307999981.pdf
Only 27.72% coverage
Here is LWIN's Engineering Statement and Coverage map for a Launched Market Pittsburgh, PA
wtbwww05.fcc.gov:80/download/0177338270954324235006616.pdf
80.3% Coverage in this market.
Hope that helps.
PCSTEL |
