Sec. 26.104  Construction requirements.

    (a) GWCS licensees shall within five years of initial license grant 
date offer service to one-third of the population in the area in which 
they are licensed. Licensees shall serve two-thirds of the population in 
the area in which they are licensed within ten years of initial license 
grant date.
    (b) In demonstrating compliance with the above construction 
requirements, licensees must base their calculations on signal field 
strengths that ensure reliable service for the technology utilized. 
Licensees may use any service radius contour formula developed or 
generally used by industry, provided

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that such formula is based on the technical characteristics of their 
system.
    (c) Upon meeting the five and ten year benchmarks in paragraph (a) 
of this section, licensees shall file a map and other supporting 
documentation that demonstrates compliance with the geographic area or 
population coverage requirement. Licensees shall file a statement 
indicating commencement of service. The filing must be received at the 
Commission on or before expiration of the relevant period.
    (d) If the sale of a license is approved, the new licensee is held 
to the original build-out requirement.
    (e) Failure by a licensee to meet the above construction 
requirements may result in forfeiture of the license and ineligibility 
to regain it.

    Note to Sec. 26.104: Population-based construction requirements 
contained in this section shall be based on the 1990 census.


    Effective Date Note:  At  60 FR 40722 , Aug. 9, 1995, Sec. 26.104 was 
added. This section contains information collection and recordkeeping 
requirements and will not become effective until approval has been given 
by the Office of Management and Budget.

           Subpart E--Competitive Bidding Procedures for GWCS