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This battle will force a deal if mmwave

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condoe3   Sunday, 12/04/16 01:52:54 PM
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This battle will force a deal if mmwave is the next big thing

License Renewal. Our spectrum licenses in the 24 GHz and 39 GHz bands are granted for ten-year terms with renewal dates ranging from 2010 to 2021. In October 2008, renewal applications for our 39 GHz licenses that were scheduled to expire in 2007 received either (1) ten-year renewals for licenses deemed constructed or (2) ten-year renewals contingent upon meeting construction requirements which the FCC extended until June 1, 2012. Recent applications to renew licenses that met the FCC "safe harbor" build standard or to extend construction deadlines for 39 GHz licenses expiring in 2009, 2010 and 2011 have been granted by the FCC.

In order for our 24 GHz and 39 GHz licenses to qualify for renewal, we filed renewal applications for each license prior to expiration and demonstrated that we have provided "substantial service" by the end of the term of each license (which was February 1, 2011 for 102 of the 103 24 GHz licenses) or reserved the right to make such a showing by an FCC approved substantial service showing date (which is June 1, 2012 for a substantial majority of the 39 GHz licenses and all but one of the 24 GHz licenses). The FCC's substantial service renewal standard for both the 24 GHz and 39 GHz licenses is intended to provide licensees with flexibility in demonstrating usage of their licenses. The FCC's "safe harbor" test provides licensees with a degree of certainty as to how to comply with the substantial service requirement. For example, for 39 GHz licensees offering point-to-point service, the FCC has said that the construction of four links per channel per million persons in the license area will meet the substantial service test. For 24 GHz point-to-point/multipoint licensees, the FCC has said that a showing of four links per million persons within a service area or service to an area that has very limited access to either wireless or wireline telecommunications services will meet the substantial service test. FCC precedent also exists in the millimeter wave bands for meeting buildout requirements by constructing a point-to-multipoint system whose signal reaches 20% or more of the population in the license area. While the safe harbors are intended to provide guidance, they are not the only way for licensees to demonstrate substantial service.

Licensees may show that they have met the substantial service test in other ways, such as providing niche services or offering services to underserved consumers, however, there is little precedent in this area at this time. Accordingly, we believe that the level of service that will be considered "substantial" by the FCC at renewal may vary depending upon the type of product offering by the licensee. Further, the FCC may modify its interpretation of substantial service and, in the future, we may encounter more stringent substantial service requirements. License renewal is not guaranteed and the FCC holds significant discretion in making renewal decisions. The loss of some number of our licenses could limit the expansion of our business, cause us to take impairment charges to our FCC licenses intangible asset and harm our operating results

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