Sec.  27.1237   Pro rata allocation of transition costs.

   (a)  Self-transitions.  EBS  licensees  that  self-transition may seek
   reimbursement  for their costs to replace eligible downconverters (see
    Sec. 27.1233(a)) and to migrate video programming and data transmission tracks
   (see   Sec. 27.1233(b))  from  BRS  licensees and lessees, EBS lessees, and
   commercial  EBS licensees in the BTA where the center point of the EBS
   licensee's GSA is located. In addition, BRS licensees and lessees, EBS
   lessees, and commercial EBS licensees in the LBS or UBS must reimburse the
   self-transitioning EBS licensee a pro rata share of the eligible costs of
   transitioning EBS licensees, based on the formula in paragraph (c) of this
   section. Eligible costs are listed in  Sec. 27.1238.

   (b) Proponent-driven transitions. BRS licensees and lessees, entities that
   lease EBS spectrum for a commercial purpose, and commercial EBS licensees
   must pay their own transition costs. In addition, except for MVPD operators
   that opt-out of the transition, BRS licensees and lessees, EBS lessees, and
   commercial EBS licensees in the LBS or UBS must reimburse the proponent a
   pro rata share of the eligible costs of transitioning EBS licensees, based
   on the formula in paragraph (c) of this section. Eligible costs are listed
   in  Sec. 27.1238.

   (c) Formula. The pro rata share shall be based on the following formula:
   [MATH:
   :MATH]

   (1) R equals the pro rata share;

   (2) L equals the amount of spectrum used by a BRS licensee or lessee or
   commercial EBS licensee or lessee to provide a commercial service, either
   directly or through a lease agreement with an EBS or BRS licensee;

   (3) T equals the total amount of spectrum licensed or leased for commercial
   purposes in the BTA;

   (4) LP equals the population of the geographic service area or BTA served by
   the BRS licensee or lessee or commercial EBS licensee or lessee based on the
   data in the 2000 United States Census; and

   (5) TP equals the population of the BTA based on the data in the 2000 United
   States Census.

   [ 71 FR 35193 , June 19, 2006]