Sec. 26.101  Multiple ownership restrictions.

    (a) GWCS licensees shall not have an ownership interest in more than 
three of the five, 5 megahertz wide channels available in any geographic 
area. For purposes of this restriction, a GWCS licensee is:
    (1) Any institutional investor, as defined in Sec. 26.4, with an 
ownership interest of ten or more percent in a GWCS license; and
    (2) Any other person or entity with an ownership interest of five or 
more percent in a GWCS license.
    (b) In cases where a party had indirect ownership, through an 
interest in an intervening entity (or entities) that has ownership in 
the GWCS license, that indirect ownership shall be attributable if the 
percentages of ownership at each level, multiplied together, equal five 
or more percent ownership of the GWCS license, except that if the 
ownership percentage for an interest in any link in the chain exceeds 50 
percent or represents actual control, it shall be treated as if it were 
a 100 percent interest.

    Example. Party X has a non-controlling ownership interest of 25 
percent in Company Y, which in turn has a non-controlling ownership 
interest of 10 percent in Company Z, the GWCS licensee. Party X's 
effective ownership interest in Company Z is Party X's ownership 
interest in Company Y (25 percent) times Company Y's ownership interest 
in Company Z (10 percent). Therefore, Party X's effective ownership 
interest in Company Z is 2.5 percent, and is not attributable.

    (c) Notwithstanding paragraph (b) of this section, the following 
interests shall not constitute attributable ownership interests for 
purposes of paragraph (a) of this section.
    (1) A limited partnership interest held by an institutional investor 
(as defined Sec. 26.4) where the limited partner is not materially 
involved, directly or indirectly, in the management or operation of the 
GWCS holdings of the partnership, and the licensee so certifies. The 
criteria which would assure adequate insulation for the purposes of this 
certification require:
    (i) Prohibiting limited partners from acting as employees of the 
limited partnership if responsibilities relate to the carrier activities 
of the licensee;
    (ii) Barring the limited partners from serving as independent 
contractors;
    (iii) Restricting communication among limited partners and the 
general partner regarding day-to-day activities of the licensee;
    (iv) Empowering the general partner to veto admissions of new 
general partners;
    (v) Restricting the circumstances in which the limited partners can 
remove the general partner;
    (vi) Prohibiting the limited partners from providing services to the 
partnership relating to the GWCS holdings of the licensee; and
    (vii) Stating that the limited partners may not become involved in 
the management or operation of the licensee.