Sec.  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.