§  73.7002   Fair distribution of service on reserved band FM channels.

   (a) If timely filed applications for full service stations on reserved
   FM channels are determined to be mutually exclusive, and will serve
   different communities, the Commission will first determine, as a
   threshold issue, whether grant of a particular application would
   substantially further the fair distribution of service goals enunciated
   in section 307(b) of the Communications Act, 47 U.S.C. 307(b).

   (b) In an analysis performed pursuant to paragraph (a) of this section,
   a full service FM applicant that will provide the first or second
   reserved channel noncommercial educational (NCE) aural signal received
   by at least 10% of the population within the station's 60dBu (1mV/m)
   service contours will be considered to substantially further fair
   distribution of service goals and to be superior to mutually exclusive
   applicants not proposing that level of service, provided that such
   service to fewer than 2,000 people will be considered insignificant.
   First service to 2,000 or more people will be considered superior to
   second service to a population of any size. If only one applicant will
   provide such first or second service, that applicant will be selected
   as a threshold matter. If more than one applicant will provide an
   equivalent level (first or second) of NCE aural service, the size of
   the population to receive such service from the mutually exclusive
   applicants will be compared. The applicant providing the most people
   with the highest level of service will be awarded a construction
   permit, if it will provide such service to 5,000 or more people than
   the next best applicant. If none of the applicants in a mutually
   exclusive group would substantially further fair distribution goals,
   all applicants will proceed to examination under a point system. If two
   or more applicants will provide the same level of service to an
   equivalent number of people (differing by less than 5,000), only those
   equivalent applicants will be considered together in a point system.

   (c) For a period of four years of on-air operations, an applicant
   receiving a decisive preference pursuant to this section is required to
   construct and operate technical facilities substantially as proposed
   and shall not downgrade service to the area on which the preference was
   based.

   [ 65 FR 36380 , June 8, 2000, as amended at  66 FR 15356 , Mar. 19, 2001]