Title 47, Telegraphs, Telephones, and RadiotelegraphsRelease 119-110

§1506 Rulemaking Related to Partitioning or Disaggregating Licenses

Title 47 › CHAPTER 14 — MAKING OPPORTUNITIES FOR BROADBAND INVESTMENT AND LIMITING EXCESSIVE AND NEEDLESS OBSTACLES TO WIRELESS › § 1506

Last updated Sep 22, 2026|Official source

Summary

The Commission must start a rulemaking no later than 1 year after March 23, 2018 to decide whether to create or change a program that lets a license holder split a spectrum license by selling or long-term leasing part of it. The split can be used so the licensee keeps using its part and so unused spectrum can go to a different small carrier or to another carrier to serve rural areas. A "covered small carrier" is a carrier with no more than 1,500 employees that uses its own facilities. A "rural area" is any place that is not a city/town over 20,000 people or an urbanized area next to a city/town over 50,000 people. In that rulemaking the Commission must look at things like whether to lower performance rules for spectrum from the program, what conditions new holders need to meet so they can build out service in a reasonable time, what incentives (for example, extending a license term or changing performance rules) would encourage licensees to sell or lease, and whether those incentives are practical to administer. If someone fails to meet the build-out rules for sold or leased spectrum, the Commission will take back the spectrum unless there is a good reason. The Commission can only offer incentives if it finds they will likely increase advanced telecommunications service in rural areas.

Full Legal Text

Title 47, §1506

Telegraphs, Telephones, and Radiotelegraphs, Source: USLM XML via OLRC

(a)Definitions
In this section: (1) Covered small carrier
(2)Rural area
The term “rural area” means any area other than—
(A)a city, town, or incorporated area that has a population of more than 20,000 inhabitants; or
(B)an urbanized area contiguous and adjacent to a city or town that has a population of more than 50,000 inhabitants.
(b)Rulemaking
(1)In general
Not later than 1 year after March 23, 2018, the Commission shall initiate a rulemaking proceeding to assess whether to establish a program, or modify existing programs, under which a licensee that receives a license for the exclusive use of spectrum in a specific geographic area under section 301 of this title may partition or disaggregate the license by sale or long-term lease—
(A)in order to—
(i)provide services consistent with the license; and
(ii)make unused spectrum available to—
(I)an unaffiliated covered small carrier; or
(II)an unaffiliated carrier to serve a rural area; and
(B)if the Commission finds that such a program would promote—
(i)the availability of advanced telecommunications services in rural areas; or
(ii)spectrum availability for covered small carriers.
(2)Considerations
In conducting the rulemaking proceeding under paragraph (1), the Commission shall consider, with respect to the program proposed to be established under that paragraph— (A)
(B)what conditions may be needed on transfers of spectrum under the program to allow covered small carriers that obtain spectrum under the program to build out the spectrum in a reasonable period of time;
(C)what incentives may be appropriate to encourage licensees to lease or sell spectrum, including—
(i)extending the term of a license granted under section 301 of this title; or
(ii)modifying performance requirements of the license relating to the leased or sold spectrum; and
(D)the administrative feasibility of—
(i)the incentives described in subparagraph (C); and
(ii)other incentives considered by the Commission that further the goals of this section.
(3)Forfeiture of spectrum
If a party fails to meet any build out requirements set by the Commission for any spectrum sold or leased under this section, the right to the spectrum shall be forfeited to the Commission unless the Commission finds that there is good cause for the failure of the party.
(4)Requirement
The Commission may offer a licensee incentives or reduced performance requirements under this section only if the Commission finds that doing so would likely result in increased availability of advanced telecommunications services in a rural area.

Reference

Citations & Metadata

Citation

47 U.S.C. § 1506

Title 47, Telegraphs, Telephones, and Radiotelegraphs

Last Updated

Sep 22, 2026

Release point: 119-110