47 U.S.C. § 1506 — Rulemaking related to partitioning or disaggregating licenses

(a) Definitions.

(1) Covered small carrier. The term "covered small carrier" means a carrier, as defined in section 153 of this title, that:

(A) Has no more than 1,500 employees, counted under section 121.106 of title 13 of the Code of Federal Regulations or any replacement for that provision; and

(B) Offers services using the carrier's facilities.

(2) Rural area. The term "rural area" means every area except:

(A) A city, town, or incorporated area with more than 20,000 residents; or

(B) An urbanized area that is contiguous and adjacent to a city or town with more than 50,000 residents.

(b) Rulemaking.

(1) In general. No later than one year after March 23, 2018, the Commission^* must begin a rulemaking proceeding to assess whether to create a program or change existing programs. Under the program, a licensee that receives an exclusive-use spectrum license for a specific geographic area under section 301 of this title could partition or disaggregate the license by selling it or leasing it for a long period. The purpose would be:

(A)(i) To provide services consistent with the license; and

(ii) To make unused spectrum available to:

(I) An unaffiliated covered small carrier; or

(II) An unaffiliated carrier to serve a rural area; and

(B) To do so if the Commission finds that the program would promote either:

(i) The availability of advanced telecommunications services in rural areas; or

(ii) Spectrum availability for covered small carriers.

This section does not define "partition," "disaggregate," "long-term lease," or "advanced telecommunications services."

(2) Considerations. In conducting the proceeding under paragraph (1), the Commission must consider these matters about the proposed program:

(A) Whether lower performance requirements for spectrum obtained through the program would help deploy advanced telecommunications services in the covered areas;

(B) What conditions may be needed on transfers of spectrum under the program so covered small carriers that obtain spectrum can build it out within a reasonable period;

(C) What incentives may appropriately encourage licensees to lease or sell spectrum, including:

(i) Extending the term of a license granted under section 301 of this title; or

(ii) Changing the license's performance requirements for the leased or sold spectrum; and

(D) Whether it would be administratively feasible to use:

(i) The incentives described in subparagraph (C); and

(ii) Other incentives the Commission considers that advance this section's goals.

(3) Forfeiture of spectrum. If a party fails to meet a build-out requirement that the Commission sets for spectrum sold or leased under this section, the party's right to the spectrum is forfeited to the Commission unless the Commission finds that the party had good cause for the failure. This section does not define "good cause."

(4) Requirement. The Commission may offer a licensee incentives or lower performance requirements under this section only if the Commission finds that doing so would likely increase the availability of advanced telecommunications services in a rural area.