§  101.1011   Construction requirements and criteria for renewal expectancy.

   (a) LMDS licensees must make a showing of “substantial service” in
   their license area within ten years of being licensed. “Substantial”
   service is defined as service which is sound, favorable, and
   substantially above a level of mediocre service which might minimally
   warrant renewal. Failure by any licensee to meet this requirement will
   result in forfeiture of the license and the licensee will be ineligible
   to regain it.

   (b) A renewal applicant involved in a comparative renewal proceeding
   shall receive a preference, commonly referred to as a renewal
   expectancy, that is the most important comparative factor to be
   considered in the proceeding as long as the applicant's past record for
   the relevant license period demonstrates that:

   (1) The renewal applicant has provided “substantial” service during its
   past license term; and

   (2) The renewal applicant has substantially complied with applicable
   FCC rules, policies, and the Communications Act of 1934, as amended.

   (c) In order to establish its right to a renewal expectancy, an LMDS
   renewal applicant involved in a comparative renewal proceeding must
   submit a showing explaining why it should receive a renewal expectancy.
   At a minimum, this showing must include:

   (1) A description of its current service in terms of geographic
   coverage and population served:

   (2) An explanation of its record of expansion, including a timetable of
   new construction to meet changes in demand for service:

   (3) A description of its investments in its LMDS system; and

   (4) Copies of all FCC orders finding the licensee to have violated the
   Communications Act or any FCC rule or policy; and a list of any pending
   proceedings that relate to any matter described in this paragraph.

   (d) In making its showing of entitlement to a renewal expectancy, a
   renewal applicant may claim credit for any system modification
   applications that were pending on the date it filed its renewal
   application. Such credit will not be allowed if the modification
   application is dismissed or denied.