WPC  2MB%RK Z3|a  Times New RomanTimes New Roman Bold P6G;P"i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+999999S9S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN K<3|a "i~'^5>I\\>>>\g0>03\\\\\\\\\\33gggQyyrg>Frgygrr>3>T\>Q\Q\Q>\\33\3\\\\>F3\\\\QX%Xc>0cT>>>0>>>>>>\>\3QQQQQwyQrQrQrQrQ>3>3>3>3\\\\\\\\\\Q\Z\\\g\QQQyQyQycyQtrQrQrQrQ\\\c\c\>3>\>>>\gcc\r3rIr>r>r3\l\\\\y>y>y>gFgFgFgcrMr3rT\\\\\\crQrQrQ\r>\gFr>\t0\\=!=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBT\>Q\\\\\3;\7;\7>>QQ\??n\\nBnnBmgg>Q\7"yyyy\njc\gnn\Times New RomanTimes New Roman BoldTimes New Roman Italic P6G;\$ KP2 XpXH K ry.X80,ɒX\  P6G;Ps2a=5,u&a\  P6G;&Pt2e=5,&e4  pG;&\0_=5,%&_*f9 xr G;&X\r>\gFr>\t0\\=!=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBT\>Q\\\\\3;\7;\7>>QQ\??n\\pBnnBmgg>Q\7"yyyy\njc\gnn\ S'X1Í.X1Í.X01Í ÍX01Í Í#&a\  P6G;u&P#Times New RomanTimes New Roman BoldTimes New Roman ItalicTimes New Roman Bold Italic"i~'^5>g\\>>>\g0>03\\\\\\\\\\>>ggg\yyrF\yrgyy>3>j\>\gQgQ>\g3>g3g\ggQF>g\\\QI(I_>0_j>>>0>>>>>>\>g3\\\\\QyQyQyQyQD3D3D3D3g\\\\gggg\\g\\\\pg\\\QQ_QyQyQyQyQ\\\_\gjF3FgF>Fgg__gy3ySy>yIy3ggg\\QQQgFgFgFg_y^y>yjgggggg_yQyQyQgy>ggFy>\0\\=2=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBa\>\\\\\\7>\7>\7>>\\\??n\\nBnnBsgg>\\7"yyyy\nlc\gnn\2IK KhKK"i~'^5>M\\>>>\}0>03\\\\\\\\\\>>}}}\rryrr>Qygyrr\grrggF3FM\>\\Q\Q3\\33Q3\\\\FF3\QyQQFI3Ic>0cM>>>0>>>>>>\>\3r\r\r\r\r\yyQrQrQrQrQ>3>3>3>3y\\\\\\\\\gQr\\\\gQ\r\r\r\r\yQyQycyQnrQrQrQrQ\\\c\c\>3>\>>>\\ccyQg3gBg>g;g3y\jy\y\\\yrFrFrF\F\F\FccgBg3gM\\\\\\ygcgFgFgF\g>y\\Fg>g\n0\\=(=WddddddddddddddddddddddddddddddddddddddddNBnnB_\F\\\\\\3;\7;\7>>gg\??n\\nBnnBb\\>g\7"yyyy\njc\}nn\"i~'^5Fg\\>>>\g0>03\\\\\\\\\\>>ggg\yyyyyF\yrrygryyrr>3>g\>\\Q\Q>\g33\3g\\\FF3gQy\QF>(>g>0gg>>>0>>>>>>\>\3y\y\y\y\y\yQyQyQyQyQF3F3F3F3g\\\\ggggrQy\\\\rQ\r\y\y\y\yQyQygyQyQyQyQyQ\\\g\ggF3F\F>F\gggy\r3r_r>rFr3ggg\\yFyFyFgFgFgFggrcr3rgggggggyrgrFrFrF\r>ggFr>r\0\\=3=WddddddddddddddddddddddddddddddddddddddddNBnnB\\F\\\\\\07\7>\7>>\\\??n\\pBnnBigg>\\7"yyyy\nyc\gnn\"i~'^'-5CCph---CK#-#%CCCCCCCCCC%%KKK;{`XX`SK``-3`Su``K`XKS``}``S-%-=C-;C;C;-CC%%C%hCCCC-3%CC`CC;@@H-#H=---#------C-C%`;`;`;`;`;uWX;S;S;S;S;-%-%-%-%`C`C`C`C`C`C`C`C`C`C`;`C`A`C`C`CKC`;`;`;X;X;XHX;`TS;S;S;S;`C`C`C`H`C`H`C-%-C---C]KHH`CS%S5S-S-S%`CO`C`C`C`Cu`X-X-X-K3K3K3KHS8S%S=`C`C`C`C`C`C}``HS;S;S;`CS-`CK3S-`CT#CC,,W]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN0PP0=C-;CCCCC%+eeC(+eeCe(--;;C..PCCPe0PP0OmmKK-;Cp("XXXXee{CePMHCKPPC"i~'^ %,77\V%%%7>%7777777777>>>0eOIIOD>OO%*ODaOO>OI>DOOgOOD%%37%07070%777V7777%*77O77055;%;3%%%%%%%%%%%7O0O0O0O0O0aHI0D0D0D0D0%%%%O7O7O7O7O7O7O7O7O7O7O0O7O6O7O7O7>7O0O0O0I0I0I;I0OED0D0D0D0O7O7O7O;O7O;O7%%7%%%7M>;;O7DD,D%D%DO7AO7O7O7O7aOI%I%I%>*>*>*>;D.DD3O7O7O7O7O7O7gOO;D0D0D0O7D%O7>*D%O7E77%%WMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN(BB(37%07777j7#TT7!#TT7T!%%007n&&Bn77lCTn(nBB(A\\>>n%07\n!"IIIITTenn7TnB@;7>lBBn72 K{KZKm"i~'^09FSS999Sq+9+/SSSSSSSSSS99qqqSggnxggxx9In]nxgxgS]xgg]]?/?FS9SSISI/SS//I/xSSSS??/SInII?C/CZ9+ZF999+999999S9S/gSgSgSgSgSnnIgIgIgIgI9/9/9/9/nSxSxSxSxSxSxSxSxS]IgSxSxSxS]IxSgSgSgSgSnInInZnIxdgIgIgIgIxSxSxSxZxSxZxS9/9S999SSZZnI]/]<]9]5]/nSanSnSxSxSng?g?g?S?S?S?ZZ]<]/]FxSxSxSxSxSxSn]Z]?]?]?xS]9nSS?]9]Sd+SS8%8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuddddddddddddddddddddddddddddddddddddddddN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""""2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""g\7"yyyy\njc\}nn\>\>\3uH5!,,5\  P6G;,P\v{,W80,%W*f9 xr G;Xy.\80, c\4  pG;"i~'^09]SS999S]+9+/SSSSSSSSSS99]]]Sxnxxng?Snxgx]nxxxxn9/9aS9S]I]I9S]/9]/]S]]I?9]SxSSIC%CW9+Wa999+999999S9]/xSxSxSxSxSxxInInInInI>/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN'ԍId.:  S' 12. Discussion. We agree with the commenters that 220 MHz licensees should have broad flexibility in defining license areas to allow the marketplace to create the most efficient and suitable  S'service areas.2  yO0'ԍAMTA Comments at 5; ComTech Comments at 3; Global Comments at 5; Rush Comments at 2; and SMR Group Comments at 67. Therefore, we will permit partitioning based on any area defined by the parties to the  Sj'partitioning agreement. Our assessment in the Broadband PCS R&O is also valid in the 220 MHz service areas defined by county lines or other geopolitical boundaries may not reflect market  S'realities and may instead inhibit partitioning.3V  {O$'ԍSee ComTech Comments at 3 (citing Broadband PCS R&O, 11 FCC at 21,847,  23). We agree with AMTA's contention that the parties to the partitioning agreement are in the best position to know what service area will work best for their" 3,''"  S'business needs,D4 yOh'ԍAMTA Comments at 5.D which, in turn, will allow the marketplace to shape optimal service areas.F5X yO'ԍGlobal Comments at 5.F We believe that any other approach would inevitably lead to inefficient use of the spectrum by forcing a partitionee to take on more area than they are willing or capable of serving. This flexible approach may complicate the maintenance of our licensee database, but we believe that the benefits to the public  S`'outweigh any additional administrative burden.D6` yO'ԍRush Comments at 2.D Otherwise, as we concluded in broadband PCS, numerous parties would be required to seek a waiver of the geopolitical line, which would  S'unnecessarily burden the Commission and the parties without any corresponding public benefit.h7x {O( 'ԍBroadband PCS R&O, 11 FCC Rcd at 21,847,  23.h Moreover, as ComTech adds, any propagation characteristics of 220 MHz systems that are different from the propagation characteristics of PCS systems will be taken into account in the negotiations  S'between the licensee and the partitionee.G8  yOB'ԍComTech Comments at 3.G   SH ' 13. Consistent with other wireless services, we will require partitioning applicants to submit, as separate attachments to the partial assignment application, a description of the partitioned service  S 'area and a calculation of the population of the partitioned service area and licensed market.l9  {O2'ԍBroadband PCS R&O, 11 FCC Rcd. at 21,84748,  24.l The partitioned service area must be defined by coordinate points at every three degrees along the partitioned service area agreed to by both parties, unless either (1) an FCCrecognized service area is  S 'utilized (i.e., Major Trading Area, Basic Trading Area, Metropolitan Service Area, Rural Service or  SZ'Economic Area) or (2) county lines are followed.(:ZZ,  yO&'ԍIn cases where an FCC recognized service area or county lines are being utilized, applicants need only list the specific area(s) (through use of FCC designations) or counties that make up the newly partitioned area.  {O'Id. ( These geographical coordinates must be specified in degrees, minutes and seconds to the nearest second latitude and longitude, and must be based upon  S 'the 1983 North American Datum (NAD83).:; N  {O'ԍId.: This coordinate data should be supplied as an  S'attachment to the partial assignment application, but maps need not be supplied.:< {Ob!'ԍId.: " r<,''x"  S' C.Disaggregation  S' 14. Background. In the Fifth NPRM, we sought comment as to whether all Phase I and Phase  S'II 220 MHz licensees should be permitted to disaggregate their licensed spectrum.s= {O'ԍSee Third Report and Order, 12 FCC Rcd. at 11,080,  323.s We also sought comment as to whether, if we permit disaggregation in the 220 MHz service, technological or administrative concerns necessitate minimum disaggregation standards, given the unique characteristics  S'of the 220 MHz service.O>Z {O 'ԍId. at 11,081,  326.O We requested proposals for such standards that would allow us to better  S'track disaggregated spectrum and review disaggregation proposals in an expeditious fashion.:? {Ov 'ԍId.:  S'15. Discussion. In general, we agree with the several comments which support allowing 220  Sr'MHz licensees to disaggregate their licensed spectrum.@r~ yO'ԍAMTA Comments at 5; Global Comments at 3; Intek Comments at 2; Rush Comments at 23; and SMR Group Comments at 3. Disaggregation will allow licensees to divest themselves of spectrum that may be more efficiently and profitably used by another entity or to  S" 'acquire additional amounts of spectrum to satisfy their consumer demands.4A"  yO'X` hp x (#%'0*,.8135@8:,''" the same time, protect against licensees who might use partitioning or disaggregation to circumvent the  S'original license term.7 yO@'X` hp x (#%'0*,.8135@8:'Memorandum Opinion and Order on Reconsideration, FCC 9893,  159 (released May 21, 1998) (Memorandum  {O'Opinion and Order). Therefore, we need not address how partitioning and disaggregation will affect installment payments.  S '30. However, when we eliminated the installment payments, we also increased the small business bidding credits in order to facilitate the participation of small businesses by overcoming the  SZ'barriers they face in mobilizing the necessary financial resources to participate in auctions.dZ {O"'ԍSee Memorandum Opinion and Order at  145.d To ensure that large businesses do not become the unintended beneficiaries of measures meant for smaller"2j,''" firms, we adopted unjust enrichment provisions similar to those adopted for narrowband PCS and the  S'900 MHz SMR service. {O@'ԍSee 47 C.F.R.  90.1017(b). See also Third Report and Order, 11 FCC Rcd. at 11076,  315.ĩ  S'31. Since the release of the Fifth NPRM, the Commission has adopted a provision in Part 1 of the Commission's Rules for all auctionable services to determine unjust enrichment for the 220 MHz  S:'service in the context of partitioning and disaggregation.:Z {O4'ԍSee Amendment of Part 1 of the Commission's Rules Competitive Bidding Procedures, WT Docket No. 9782, Allocation of Spectrum Below 5 GHz transferred from Federal Government Use, ET Docket No. 94 {O '32, Third Report and Order and Second Further Notice of Proposed Rule Making, 13 FCC Rcd. 374, 405409,  {O ' 4957 (1997). See also 47 C.F.R.  1.2111(d), (e). The approach in Part 1 of the Commission's Rules is the  {OZ 'same as set forth in the Fifth NPRM. We also followed this approach to unjust enrichment in the context of  {O$ 'partitioning and disaggregation in other services. See Broadband PCS R&O, 11 FCC Rcd. at 21,852,  3435;  {O '800 MHz SMR Second Report and Order, 12 FCC Rcd. at 19,148,  210; WCS Report and Order, 12 FCC Rcd.  {O 'at 10,838,  101, LMDS Fourth Report and Order, 13 FCC Rcd. at (11,655),  25; Maritime Third Report and  {O'Order, at  43. Thus, we will follow the uniform  S'procedures set forth in Part 1 of our Rules and calculate unjust enrichment based on population for  S'partitioned areas, and on the amount of spectrum for disaggregated spectrum.H\:  {O'ԍSee 47 C.F.R.  1.2111(e)(3). As provided in our Rules, the unjust enrichment penalty shall be reduced  {O'over time. See 47 C.F.R.  90.1017(b)(3). Also, we note that population will be calculated based upon the latest available census data.H Consistent with our rules for other services, we will use a combination of both population of the partitioned area and  S'amount of spectrum disaggregated to make these pro rata calculations when a combined partitioning  St'and disaggregation is proposed.t^  {Or'ԍSee, e.g., Broadband PCS R&O, 11 FCC Rcd. at 21,866,  66; LMDS Fourth Report and Order, 13 FCC Rcd. at (11,655),  25. We believe that such unjust enrichment requirements strike the proper balance between promoting economic opportunities for small businesses while preventing abuse of our bidding credits by partitioning or disaggregation.   S ' I.Licensing  S '  S '32. Background. The 220 MHz service rules currently forbid partial assignment of Phase I  S\'licenses.T\ {O'ԍSee 47 C.F.R.  90.709(d).T However, based on the existing partial assignment rules for commercial mobile radio stations in Part 90, we proposed utilizing partial assignment procedures, similar to those adopted for  S 'broadband PCS, to review 220 MHz partitioning and disaggregation transactions.s J {O"'ԍSee Third Report and Order, 12 FCC Rcd. at 11,088,  345.s We tentatively held that partial assignment applications would be placed on public notice and subject to petitions to deny, and that the parties would be required to submit an FCC Form 490 (Application for Assignment of Authorization or Consent to Transfer of Control of Licensee), an FCC Form 600 (Application for Mobile Radio Service Authorization) and, if necessary, an FCC Form 430 (Licensee Qualification"l,'' "  S'Report), together as one package under cover of the FCC Form 490.: {Oh'ԍId.: We invited comment on  S'whether any additional procedures are necessary for reviewing these applications.:Z {O'ԍId.: We also sought comment on how licensing issues should be addressed for non-commercial mobile radio stations in the  S'220 MHz service with respect to partial assignments.: {O'ԍId.:  S8' 33. Discussion. Because we consider partitioning and disaggregation transactions to be essentially partial assignments of a license, we will eliminate the rule that forbids partial assignment of Phase I licenses and adopt the partial assignment procedures for commercial mobile radio stations, as outlined in section 90.153 of the Commission's Rules, to review all 220 MHz partitioning and  S'disaggregation transactions, both commercial and noncommercial.Q~ {O'ԍSee 47 C.F.R.  90.153.Q As with most assignments and  Sp'transfers, Commission review and approval is necessary to ensure compliance with our rules.Hp yO 'ԍWe note that we recently determined that we would forbear from applying our procedures for reviewing  {O'pro forma transfers of control and assignments of licenses involving wireless telecommunications carriers. We  {O'decided to allow these carriers to simply notify the Commission after the pro forma transaction has been  {O|'consummated. See Federal Communications Bar Association's Petition for Forbearance from Section 310(d) of the Communications Act Regarding NonSubstantial Assignments of Wireless Licenses and Transfers of Control  {O'Involving Telecommunications Carriers, Memorandum Opinion and Order, 13 FCC Rcd. 6293 (1998). However, partitioning and disaggregation transactions are not pro forma in nature and, therefore, the rationale we followed in that proceeding would not apply here. This process includes placing all partial assignment applications on public notice and making them subject  S 'to public comment. We disagree with Rush's suggestion to eliminate the public notice requirement.  yO'ԍRush Comments at 6. Rush points to the tens of thousands of private mobile radio service licenses  {O'which are issued annually with no public notice and with no apparent problems. Id. We believe that the public notice process does not create delays and extra workload that exceeds the benefits derived, and believe the public notice process is even more important in the context of partitioning and disaggregation because of the potential interference conflicts such transactions can create. As we concluded with broadband PCS, these procedures are easy to administer and provide an  SX'appropriate method for reviewing partitioning and disaggregation proposals.mXz {Or 'ԍSee Broadband PCS R&O, 11 FCC Rcd. at 21,867,  70.m As to the particular forms required for a partitioning and/or disaggregation assignment, we will require the original licensee and the partial assignee to file the appropriate FCC forms under the Universal Licensing  S'System.w  yO$'ԍCurrently, FCC Form 603 has been approved to collect such information.w ",''x"  S')%m!34. )` ` H V. CONCLUSION  S'  S'!34. We conclude that the rules we have adopted in this Fifth Report and Order will provide 220 MHz licensees with the competitive benefits we believe can be achieved by allowing licensees to partition and disaggregate. In particular, we believe these options will produce more efficient use of the 220 MHz spectrum, bring service to areas that might otherwise remain unserved or underserved in the near future and allow more entities to enter the 220 MHz marketplace, thereby increasing competition and services to consumers. In general, we have followed the framework established in other wireless services, making changes only when required by the unique technical and regulatory aspects of the 220 MHZ service. Moreover, by allowing 220 MHz licensees to partition and disaggregate, we will give them greater flexibility to structure their business arrangements so that they are better able to respond to market demands for service and be more competitive with other wireless services. " ,'' "  S'` `  VI. PROCEDURAL MATTERS A. Regulatory Flexibility Act  S`' "35. The Final Regulatory Flexibility Act purusant to the Regulatory Flexibility Act, 5 U.S.C.  604, is contained in Appendix C.  S' B. Paperwork Reduction Act  S' #36. This Report and Order contains no new or modified information collection requirements. The information collections referenced in the item are contained in information collections previously approved by the Office of Management and Budget under the Paperwork Reduction Act.  S ' C. Ordering Clauses   S ' $37. Accordingly, IT IS ORDERED THAT, pursuant to the authority of Sections 4(i), 303(g), 303(r), and 332(a) of the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 303(g), 303(r), and 332(a), section 90.709 of the Commission's Rules, 47 C.F.R.  90.709, IS AMENDED as set forth in Appendix B.  S' %38. IT IS FURTHER ORDERED THAT, pursuant to the authority of Sections 4(i), 303(g), 303(r), and 332(a) of the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 303(g), 303(r), and 332(a), section 90.725 of the Commission's Rules, 47 C.F.R.  90.725, IS AMENDED as set forth in Appendix B. &39. IT IS FURTHER ORDERED THAT, pursuant to the authority of Sections 4(i), 303(g), 303(r), and 332(a) of the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 303(g), 303(r), and 332(a), section 90.1019 of the Commission's Rules, 47 C.F.R.  90.1019, IS AMENDED as set forth in Appendix B. '40. IT IS FURTHER ORDERED THAT the rule change adopted herein SHALL BECOME EFFECTIVE sixty days after date of publication in the Federal Register. This action is taken pursuant to sections 4(i) and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C.  154(i) and 303(r). (41. IT IS FURTHER ORDERED THAT the Director, Office of Public Affairs, SHALL  S`'SEND a copy of this Fifth Report and Order, including the Final Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business Administration, in accordance with section 605(b) of the Regulatory Flexibility Act, 5 U.S.C.  601(a). " ,''2 "  S' D. Further Information  hhC  S' )42. For further information concerning this proceeding, contact Scott A. Mackoul, Federal Communications Commission, Wireless Telecommunications Bureau, Commercial Wireless Division,  S`'Policy and Rules Branch, at (202) 4187240.  S' ` `  hhCqFEDERAL COMMUNICATIONS COMMISSION   ` `  hhCqMagalie Roman Salas  S '` `  hhCqSecretary" ,%% "  S'Y APPENDIX A ă  S'2 LIST OF COMMENTERS  S'  S`'Comments  S8'American Mobile Telecommunications Association, Inc. (AMTA) ComTech Communications, Inc. (ComTech) Global Cellular Communications, Inc. (Global) Intek Diversified Corp. (Intek) Rush Network Corp. (Rush)  Sp'SMR Advisory Group, L.C. (SMR Group)  S 'Reply Comments ComTech Communications, Inc. (ComTech) Intek Diversified Corp. (Intek)  S '" ,%% J "  S' 1. 1. 1. a.(1)(a) i) a)* 1. 1. 1. a.(1)(a) i) a) ZAPPENDIX B UFINAL RULES  S`' Chapter I of Title 47 of the Code of Federal Regulations is amended as follows: 1. Section 90.709 is revised as follows:  S' Sec. 90.709 Special limitations on amendment of applications and on assignment or transfer of  S'authorizations licensed under this subpart. * * * * (d) A licensee may partially assign any authorization in accordance with  90.1019. * * * * 2. Section 90.725 is revised as follows:  S0' Sec. 90.725 Construction requirements for Phase I licensees. (a) Licensees granted commercial nationwide authorizations will be required to construct base stations and placed those base stations in operation as follows:  S' * * * *  3. The Table of Contents for Subpart W of Part 90 is revised as follows:  S' Subpart W Competitive Bidding Procedures for the 220 MHz Service  S' * * * * 90.1019 Partitioning and disaggregation.  * * * * 4. Section 90.1019 is revised as follows:  S`' Sec. 90.1019 Partitioning and disaggregation.  S '(a) Definitions.  S!'Disaggregation. The assignment of discrete portions or "blocks" of spectrum licensed to a geographic licensee or qualifying entity. "t#,%% ""Ԍ S'Partitioning. The assignment of geographic portions of a licensee's authorized service area along geopolitical or other geographic boundaries.  S'(b) Eligibility. (1) Phase I nonnationwide licensees may apply to partition their licensed geographic service area or disaggregate their licensed spectrum after constructing their systems and placing their in operation or commencing service in accordance with the provisions in  90.725(f). (2) Phase I nationwide licensees may apply to partition their licensed geographic service area or disaggregate their licensed spectrum after constructing at least 40 percent of the geographic areas designated in their applications in accordance with the provisions in  90.725(a). (3) Phase II licensees may apply to partition their licensed geographic service area or disaggregate their licensed spectrum at any time following the grant of their licenses. (4) Phase I and Phase II licensees authorized to operate on Channels 161 through 170 or Channels 181 through 185 are not eligible to partition their geographic service area or disaggregate their licensed spectrum. (5) Parties seeking approval for partitioning and disaggregation shall request authorization for partial assignment of a license pursuant to  90.709, as amended.  Sl'(c) Technical Standards.  S'(1) Partitioning. In the case of partitioning, requests for authorization for partial assignment of a license must include, as an attachment, a description of the partitioned service area. The partitioned service area shall be defined by coordinate points at every 3 degrees along the partitioned  S'service area agreed to by both parties, unless either an FCCrecognized service area is utilized (i.e., Major Trading Area, Basic Trading Area, Metropolitan Service Area, Rural Service or Economic Area) or county lines are followed. The geographical coordinates must be specified in degrees, minutes and seconds to the nearest second latitude and longitude, and must be based upon the 1983 North American Datum (NAD83). In the case where an FCCrecognized service area or county lines are utilized, applicants need only list the specific area(s) through use of FCC designations or county names that constitute the partitioned area. In such partitioning cases where an unjust enrichment payment is owed the Commission, the request for authorization for partial assignment of a license must include, as an attachment, a calculation of the population of the partitioned service area and licensed geographic service area.  S '(2) Disaggregation. Spectrum may be disaggregated in any amount.  S"'(3) Combined Partitioning and Disaggregation. The Commission will consider requests for partial assignment of licenses that propose combinations of partitioning and disaggregation. In the"~#,%% "" event that there is a conflict in the application of the partitioning and disaggregation rules, the partitioning rules take precedence.  S'(d $K}5 ) License Term. The license term for a partitioned license area and for disaggregated spectrum shall be the remainder of the original licensee's license term.  S'( $K}7 e $K}7 ) Construction Requirements.  S'(1) Requirements for Partitioning. Phase II EA, Regional or nationwide licensees seeking authority to partition must meet one of the following construction requirements:  ` ` (A) The partitionee may certify that it will satisfy the applicable construction requirements set forth in Secs. 90.767 or 90.769, as applicable, for the partitioned license area; or ` ` (B) The original licensee may certify that it has or will meet its fiveyear construction requirement and will meet the tenyear construction requirement, as set forth in Secs. 90.767 or 90.769, as applicable, for the entire license area. In that case, the partitionee must only satisfy the requirements for "substantial service," as set forth in Sec. 90.743(a)(1), for the partitioned license area by the end of the original tenyear license term of the licensee.  S'` ` (C) Applications requesting partial assignments of license for partitioning must include a certification by each party as to which of the above construction options they select.  Sn'` ` (D) Partitionees must submit supporting documents showing compliance with the respective construction requirements within the appropriate fiveyear and tenyear construction benchmarks set forth in Sec. 90.767 or 90.769, as applicable. ` ` (E) Failure by any partitionee to meet its respective construction requirements will result in the automatic cancellation of the partitioned license without further Commission action.   SV'(2) Requirements for Disaggregation. Parties seeking authority to disaggregate spectrum from a Phase II EA, Regional or nationwide license, must submit with their partial assignment application a certification signed by both parties stating which of the parties will be responsible for meeting the fiveyear and tenyear construction requirements for the particular market as set forth in Sec. 90.767 or 90.769, as applicable. Parties may agree to share responsibility for meeting the construction requirements. If one party accepts responsibility for meeting the construction requirements and later fails to do so, then its license will cancel automatically without further Commission action. If both parties accept responsibility for meeting the construction requirements and later fail to do so, then both their licenses will cancel automatically without further Commission action.  S ' \  S'YAPPENDIX C ă  S'  FINAL REGULATORY FLEXIBILITY ANALYSIS Đ\  Q`'{EFifth Report and Orderă As required by section 603 of the Regulatory Flexibility Act (RFA), 5 U.S.C.  603, an Initial  S'Regulatory Flexibility Analysis (IRFA) was incorporated in the Third Report & Order; Fifth Notice of  S'Proposed Rulemaking (Fifth NPRM) in PR Docket No. 89552, RM8506. The Commission sought  S'written public comment on the proposals in the Fifth NPRM, including the IRFA. The Commission's  Sv'Final Regulatory Flexibility Analysis in this Fifth Report and Order (Fifth R&O) conforms to the  SP 'RFA, as amended by the Contract With America Advancement Act of 1996.P  yO 'X` hp x (#%'0*,.8135@8: