SPECTRUM 

MANAGEMENT

FCC’s Use and 

Enforcement of 

Buildout 

Requirements

Report to Congressional Requesters 

February 2014

GAO-14-236

United States Government Accountability Office
United States Government Accountability Office

Highlights of GAO-14-236, a report to 

congressional requesters

February 2014

SPECTRUM MANAGEMENT

FCC’s Use and Enforcement of Buildout 

Requirements

Why GAO Did This Study

Radio frequency spectrum is a natural 

resource used to provide a variety of 

communication services, such as

mobile voice and data. The popularity 

of smart phones, tablets, and other 

wireless devices among consumers, 

businesses, and government users has

increased the demand for spectrum. 

FCC takes a number of steps to 

promote efficient and effective use of 

spectrum. One such step is to 

establish buildout requirements, which 

specify that an entity granted a license 

must begin using the assigned 

spectrum within a specified amount of 

time or face penalties, such as loss of 

the license. 

GAO was asked to review buildout 

requirements and the efficient use of 

spectrum. This report (1) describes the 

buildout requirements FCC established 

for wireless services, (2) assesses the 

extent to which FCC follows its process 

to enforce buildout requirements, and 

(3) examines stakeholder opinions on 

the extent that commonly cited goals 

for buildout requirements have been 

met. GAO reviewed FCC regulations 

and guidance on buildout requirements

and examined FCC license data on 

outcomes of buildout requirements for 

5 out of about 45 wireless services

selected to ensure variety in type of 

use and buildout requirement, among 

other criteria. GAO also interviewed

FCC officials, commercial spectrum 

licensees, industry associations, and 

spectrum policy experts.

GAO is making no recommendations in 

this report. FCC reviewed a draft of this 

report and provided technical 

comments that GAO incorporated as 

appropriate.

What GAO Found

The Federal Communications Commission (FCC) has established buildout 

requirements—which require a licensee to build the necessary infrastructure and 

put the assigned spectrum to use within a set amount of time—for most wireless 

services, including cellular and personal communication services. FCC tailors the 

buildout requirements it sets for a wireless service based on the physical 

characteristics of the relevant spectrum and comments of stakeholders, among 

other factors. Therefore, buildout requirements vary across wireless services. For 

example, a buildout requirement can set the percentage of a license’s population 

or geographic area that must be covered by service or can describe the required

level of service in narrative terms rather than numeric benchmarks. Buildout 

requirements also vary by how much time a licensee has to meet a requirement 

and whether it has to meet one requirement or multiple requirements in stages.

FCC’s enforcement process for wireless-service licenses with buildout 

requirements primarily relies on information provided by licensees, and FCC 

followed its process for the five wireless services GAO reviewed. Specifically, 

FCC requires licensees to self-certify that they have met buildout requirements. If 

a licensee does not do so, FCC automatically terminates the license. Some 

stakeholders GAO interviewed said that self-certification is an effective way for 

FCC to enforce buildout requirements because it is public and transparent. GAO

examined FCC license data for five wireless services and found that buildout 

requirements were met for 75 percent of those licenses, and FCC generally 

terminated those that did not. As part of enforcement, FCC also grants or 

dismisses licensees’ requests to extend the deadline for meeting a requirement. 

FCC may grant an extension if the licensee shows that it cannot meet a deadline 

due to causes beyond its control, like a lack of available equipment. For the five 

wireless services examined, GAO found that extensions were requested for 9 

percent of licenses, and FCC granted 74 percent of these requests. FCC officials 

said that the Commission seeks to be aggressive but pragmatic when enforcing 

buildout requirements, including being flexible on deadlines when needed. Some

licensees and industry associations GAO interviewed said that extensions can 

provide needed flexibility when unexpected problems occur. Some concerns 

were raised, however, that granting extensions can undermine buildout 

requirements by creating an impression that they will not be strictly enforced. 

Stakeholders GAO interviewed generally said that buildout requirements are 

effective in meeting two of four goals commonly cited in FCC documents and 

statute—encouraging licensees to provide services in a timely manner and 

preventing the warehousing of spectrum. Stakeholders had mixed views on the 

effectiveness of buildout requirements in meeting two other goals—promoting 

innovative services and promoting services to rural areas—largely because they 

believed that other tools could better address these goals. Other tools 

stakeholders mentioned include greater use of spectrum licenses that allow a 

wider array of uses and providing licensees with subsidies to serve rural areas.

Nearly all the licensees and industry associations GAO interviewed said they 

support FCC having buildout requirements, while spectrum policy experts GAO

interviewed were mixed in their support of the requirements. Experts who did not 

support buildout requirements said that the requirements are set too weak or that 

other tools could better meet FCC goals, among other reasons.

View GAO-14-236. For more information, 

contact Mark Goldstein at (202) 512-2834 or 

goldsteinm@gao.gov.
Page i GAO-14-236 Spectrum Management

Letter 1

Background 5

FCC Establishes Buildout Requirements for Most Wireless 

Services 8

FCC Enforces Buildout Requirements through Automated 

Processes and Staff Reviews and Followed Its Process for 

Selected Wireless Services 12

Stakeholders Generally Support Buildout Requirements but 

Identified Changes and Alternative Tools That They Thought 

Could Better Meet Goals 24

Agency Comments 34

Appendix I Objectives, Scope, and Methodology 36

Appendix II Buildout Requirements for Spectrum Licenses 43

Appendix III Outcomes of Buildout Requirements for Selected Wireless Services 56

Appendix IV GAO Contact and Staff Acknowledgments 64

Tables

Table 1: Description of Selected Wireless Services 3

Table 2: FCC Bureaus That License Spectrum 6

Table 3: FCC Buildout Requirements for Selected Wireless 

Services, as of January 2014 10

Table 4: Buildout Requirement Outcomes for Licenses, by 

Wireless Service, Data as of September 1, 2013 18

Table 5: Number of Licenses That Did and Did Not Request

Extensions by Wireless Service, Data as of September 1, 

2013 20

Table 6: Number of Extension Requests Granted and Dismissed 

by Wireless Service, Data as of September 1, 2013 21

Table 7: Outcomes of Licenses by Wireless Service and 

Extension Request Outcome, Data as of September 1, 

2013 22

Contents
Page ii GAO-14-236 Spectrum Management

Table 8: Stakeholder-Identified Replacements for and 

Complements to FCC Buildout Requirements 31

Table 9: Organizations and Individuals Interviewed 41

Table 10: Buildout Requirements for Private and Commercial 

Land-Mobile Radio Services, as of January 2014 43

Table 11: Buildout Requirements for Location and Monitoring 

Services, as of January 2014 45

Table 12: Buildout Requirements for Cellular Services, as of 

January 2014 46

Table 13: Buildout Requirements for Broadband Personal 

Communications Service (PCS), as of January 2014 46

Table 14: Buildout Requirements for Narrowband Personal 

Communications Service (PCS), as of January 2014 47

Table 15: Buildout Requirements for Paging and Radiotelephone 

Services, as of January 2014 48

Table 16: Buildout Requirements for Miscellaneous Wireless 

Communication Services, as of January 2014 49

Table 17: Buildout Requirements for Maritime Public Coast 

Services, as of January 2014 52

Table 18: Buildout Requirements for Aviation Services, as of 

January 2014 52

Table 19: Buildout Requirements for Fixed-Microwave Services, 

as of January 2014 53

Table 20: Buildout Requirements for Broadcast Auxiliary Services, 

as of January 2014 53

Table 21: Buildout Requirements for Personal Radio Service, as 

of January 2014 53

Table 22: Buildout Requirements for Broadcast Services, as of 

January 2014 54

Table 23: Buildout Requirements for Satellite Services, as of 

January 2014 54

Table 24: Number of Licenses, by Wireless Service 56

Table 25: Number of Market-Based Licenses, by Wireless Service 

and Auction 56

Table 26: Number of Site-Based Licenses, by Wireless Service 57

Table 27: Number of Licenses that Did and Did Not Have a 

Buildout Requirement, by Wireless Service 57

Table 28: Buildout Requirement and Extension Request 

Outcomes for Select Broadband PCS Licenses 58

Table 29: Number of Extension Requests for Select Broadband 

PCS Licenses 58
Page iii GAO-14-236 Spectrum Management

Table 30: Buildout Requirement and Extension Request 

Outcomes for Select 220 MHz Phase II Licenses 59

Table 31: Number of Extension Requests for Select 220 MHz 

Phase II Licenses 60

Table 32: Buildout Requirement and Extension Request 

Outcomes for Select 39 GHz Licenses 60

Table 33: Number of Extension Requests for Select 39 GHz 

Licenses 61

Table 34: Buildout Requirement and Extension Request 

Outcomes for Select Fixed-Microwave Licenses 61

Table 35: Number of Extension Requests for Select FixedMicrowave Licenses 62

Table 36: Buildout Requirement and Extension Request 

Outcomes for Select Industrial/Business Private LandMobile-Radio Licenses 62

Table 37: Number of Extension Requests for Select 

Industrial/Business Private Land-Mobile-Radio Licenses 63

Figure

Figure 1: Overview of FCC Enforcement of Buildout Requirements 

for Wireless Services 16

Abbreviations

APA Administrative Procedure Act 

EA economic area

FCC Federal Communications Commission

GHz gigahertz

MHz megahertz

NTIA National Telecommunications and Information Administration 

PCS personal communications service

ULS Universal Licensing System 

WTB Wireless Telecommunications Bureau

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Page 1 GAO-14-236 Spectrum Management

441 G St. N.W.

Washington, DC 20548

February 26, 2014

The Honorable Michael F. Doyle

House of Representatives

The Honorable Peter Welch

House of Representative

Radio frequency spectrum is a natural resource used to provide a variety 

of communication services, such as mobile voice and data, to consumers, 

businesses, and federal, state, and local government users. The 

popularity of smart phones, tablets, and other wireless devices has 

created an explosion in the demand for and use of spectrum. However, 

most of the usable spectrum in the United States has already been 

allocated to existing services and assigned to users. Since there are 

virtually no “green fields” of favorable spectrum currently available to help 

address the increased demand by the general public and government 

users, Congress, regulators, and entities that rely on spectrum are 

looking for ways to promote more efficient use of this resource.1

The Federal Communications Commission (FCC)—the agency that 

regulates spectrum use for commercial and other nonfederal users—

manages spectrum through allocation and assignment:2

• Allocation involves designating bands of spectrum for specific 

types of services or classes of users, such as for commercial or 

government use.3

 

1

For many mobile radio systems, the 300 megahertz (MHz) to 3 gigahertz (GHz) spectrum 

range is the portion of the spectrum where scarcity concerns are the greatest. While 

other, higher-frequency spectrum is available as green field or underutilized spectrum, 

these bands are less favorable for traditional wireless networks. 

2

The Department of Commerce’s National Telecommunications and Information 

Administration (NTIA) is responsible for managing the federal government’s use of the 

radio frequency spectrum.

3

A band is a range of frequencies in the spectrum that are used or set aside for a specific 

purpose (such as the 1,710–1,755 MHz band that FCC allocated for fixed and mobile 

services and designated for Advanced Wireless Services to support Third Generation (3G) 

mobile broadband and advanced-wireless services).
Page 2 GAO-14-236 Spectrum Management

• Assignment provides a license to a specific entity, like a wireless 

carrier or trucking company, to use a specific portion of spectrum 

after it has been allocated. FCC uses a competitive-bidding 

process, or auctions, to assign some licenses to entities that 

submit the highest bids for licensing in specific bands of spectrum.

FCC takes a number of steps in both the allocation and assignment 

processes to promote efficient and effective use of spectrum. Buildout 

requirements—also known as construction or coverage requirements—

are among the tools that FCC uses to work toward its goal of efficient 

spectrum use; in its fiscal year 2014 budget request, FCC said that 

enforcing the Commission’s regulations, specifically citing buildout 

requirements, is one action it takes to achieve its strategic goal to 

maximize the benefits of spectrum. Buildout requirements specify that an 

entity granted a license must build the necessary infrastructure and put 

the assigned spectrum to use within a specified amount of time or face 

penalties, typically termination of all or part of the license.4 Buildout 

requirements are designed to ensure that licensees put spectrum to use 

within a specific period rather than let it sit idle.

Given the high demand for spectrum, you asked us to review buildout 

requirements and the efficient use of spectrum. While FCC sets buildout 

requirements for many types of spectrum licenses, we focused our review 

on the buildout requirements for wireless services, as these services 

account for a majority of spectrum licenses—nearly 2 million licenses as 

of December 2013.5

 This report (1) describes the buildout requirements 

established by FCC for spectrum licenses for wireless services, (2) 

assesses the extent to which FCC follows its process to enforce buildout 

requirements for wireless services, and (3) examines stakeholder 

opinions on the extent that goals for buildout requirements have been 

met. To answer these questions, we reviewed FCC regulations and 

guidance on buildout requirements for services that use spectrum. We 

also interviewed FCC officials to understand which wireless services have 

buildout requirements, the general process used to establish buildout 

 4

47 C.F.R. § 1.946(c). 

5

Wireless services include cellular telephone, paging, personal communications services, 

and other commercial and private radio services. FCC also sets buildout requirements for 

satellite, broadcast, and public safety communications spectrum licenses, which we did 

not include in the scope of our review. 
Page 3 GAO-14-236 Spectrum Management

requirements, and the steps FCC takes to monitor and enforce buildout 

requirements for wireless services. 

To determine the extent to which FCC enforces buildout requirements for 

wireless services, we examined FCC data and documents on buildout 

requirements for 5 out of about 45 wireless services (see table 1). We 

selected these wireless services to ensure variety in type of service or 

use, type of buildout requirement, how licenses are assigned (e.g., 

auctions), and the number of licenses in the service. We also considered 

recommendations from FCC officials and other interviewees when 

selecting wireless services. 

Table 1: Description of Selected Wireless Services

Service Use Frequency Assignment process

Broadband personal 

communications service (PCS)

Mobile voice and data services, 

including cell phone, text messaging, 

and Internet

1,850 to 1,990 MHz Auction

220 MHz phase II Various uses, including paging 

services and two-way radio systems

220 to 222 MHz Auction

39 GHz Fixed point-to-point communications 

used, for example, to provide 

“backhaul”

a

38.6 to 40.0 GHz

and backbone links for 

other communications systems; also 

used for point-to-multipoint systems 

as part of private wireless networks 

Auction

Fixed microwave Fixed point-to-point communications 

to carry voice, data, video, and other 

information, often as backhaula

Various frequencies 

above 928 MHz

Administrative process—

assigned on a first-come, firstserved basis

Industrial/business private land 

mobile radio, below 700 MHz 

(private land mobile radio)

Radio systems used by companies to 

support business operations like 

dispatching and remote monitoring of 

equipment

Various frequencies 

below 700 MHz, not 

including 220 MHz

Administrative process—

generally assigned on a nonexclusive, shared basis

Source: GAO analysis of FCC information.

b

a

“Backhaul” is the telecommunications industry term that refers to connections between a central 

telecommunications network and other nodes outside the central network, such a cell phone tower.

b

The private land mobile radio service includes public safety licenses, but we excluded these licenses 

from our analysis. We focused our review on wireless services licensed by the Wireless 

Telecommunications Bureau (WTB), which account for a majority of spectrum licenses. 

For the five selected wireless services, we analyzed data from FCC’s 

Universal Licensing System (ULS) to examine license outcomes and FCC 
Page 4 GAO-14-236 Spectrum Management

enforcement actions related to buildout requirements.6 For each selected 

wireless service, we analyzed data for licenses with buildout requirements 

on or before December 31, 2012.7

 For each license, we examined 

outcomes related to buildout requirements (e.g., met requirement or did 

not meet requirement and was terminated) and outcomes related to 

requesting an extension of a buildout deadline. To assess the reliability of 

the ULS data, we interviewed FCC officials, reviewed system 

documentation, and conducted electronic data testing. We determined 

that these data were sufficiently reliable for our purposes. 

To gather stakeholder opinions on the effectiveness of buildout 

requirements, we interviewed a sample of 28 industry stakeholders 

including spectrum policy experts, industry associations, and licensees. 

We selected experts based on participation in recent GAO spectrum 

policy reviews, publications on spectrum policy, and recommendations 

from other interviewees, and we selected industry associations and 

licensees to cover the five selected wireless services. To determine the 

goals for buildout requirements, we reviewed applicable law, FCC 

documents from recent rulemakings, and other FCC budget and 

performance documents; we identified four goals for buildout 

requirements that were frequently cited in these source documents. We 

conducted semi-structured interviews with the 28 stakeholders to gather 

their opinions on whether buildout requirements were effective or 

ineffective in meeting the frequently cited goals as well as for reasons or 

examples to support these opinions. We also obtained stakeholders’ 

views about what changes to buildout requirements and what alternative 

tools FCC could use to better meet the goals, if any. Findings from our 

interviews with selected industry stakeholders should not be used to 

support generalizations about the overall effectiveness of buildout 

requirements or what alternatives FCC might use. To supplement these 

interviews, we reviewed filings made by licensees, industry associations, 

and other companies and associations in two FCC proceedings since 

2010 that sought comments on buildout requirements for wireless 

 6

ULS operates as a single, seamless licensing system for all wireless services to process 

licenses in a uniform manner. ULS also serves as the central, consolidated repository for 

application and license data for wireless services. 

7

Due to the high volume of licenses in the fixed microwave and industrial/business private 

land mobile radio services, we limited our analysis to new licenses with buildout 

requirements during calendar year 2012.
Page 5 GAO-14-236 Spectrum Management

services. See appendix I for a more detailed explanation of our scope and 

methodology.

We conducted this performance audit from February 2013 through 

February 2014 in accordance with generally accepted government 

auditing standards. Those standards require that we plan and perform the 

audit to obtain sufficient, appropriate evidence to provide a reasonable 

basis for our findings and conclusions based on our audit objectives. We 

believe that the evidence obtained provides a reasonable basis for our 

findings and conclusions based on our audit objectives. 

Radio frequency spectrum is used to provide an array of commercial and 

governmental services, like mobile voice and data, air-traffic control, 

broadcast television and radio, and public safety activities. In the United 

States, responsibility for spectrum management is divided between two 

agencies: FCC and the Department of Commerce’s National 

Telecommunications and Information Administration (NTIA). FCC 

manages spectrum use for nonfederal users, including commercial, 

private, and state and local government users under authority provided in 

the Communications Act.8

 NTIA manages spectrum for federal 

government users and acts for the President with respect to spectrum 

management issues.9

FCC is an independent regulatory agency composed of five 

commissioners appointed by the President and confirmed by the Senate. 

The commissioners delegate many of FCC’s day-to-day responsibilities, 

including processing applications for licenses and analyzing consumer 

complaints, to the agency’s 7 bureaus and 10 offices. According to its 

fiscal year 2014 budget request, FCC has just over 1,700 full-time 

equivalent staff in Washington, D.C., and other locations; FCC requested 

$359 million for its fiscal year 2014 budget.

Among other duties, FCC bureaus responsible for granting spectrum 

licenses administer service rules that outline technical and operating 

 8

Communications Act of June 19, 1934, ch. 652, as amended, codified at 47 U.S.C. ch. 5, 

subch. II (the Communications Act).

9

National Telecommunications and Information Administration Organization Act, Pub. L. 

No. 102-538, title I, 106 Stat. 3533, codified as amended at 47 U.S.C. ch. 8. 

Background 
Page 6 GAO-14-236 Spectrum Management

requirements for spectrum licenses. Service rules may be set at the time 

FCC allocates spectrum into bands for a specific type of service or group 

of users. FCC develops rules through a process defined by the 

Administrative Procedure Act (APA).10 The APA process requires FCC to 

provide the public with notice of its proposed and final rules and with an 

opportunity to comment as the rules are developed. All comments and 

information gathered by FCC constitute the public record to support 

rulemakings and are electronically maintained in a docket. FCC 

maintains the dockets in an electronic system that is available to the 

public on its website.11

After spectrum is allocated and service rules are set, depending on the 

type of service or user, one of four FCC bureaus assigns licenses to 

users (see table 2). For example, the Wireless Telecommunications 

Bureau (WTB) develops and executes policies and procedures for the 

licensing of all wireless services (except wireless public safety services), 

and the Media Bureau administers television and radio broadcast 

licenses.

Table 2: FCC Bureaus That License Spectrum

Bureau Licensing responsibilities 

International Bureau International telecommunications and satellite 

services. 

Media Bureau Electronic media, broadcast television, and radio.

Public Safety and Homeland 

Security Bureau

Services used by public safety entities such as 

police and fire departments.

Wireless Telecommunications 

Bureau

All domestic wireless services (other than public 

safety) including cellular telephone, paging, fixed 

microwave, and mobile broadband services.

Source: FCC.

Licenses for wireless services are assigned through competitive bidding 

(auctions) or administrative processes. The assignment process used 

depends in large part upon whether applications for licenses are mutually 

exclusive—that is, on whether granting a license to one entity would 

 105 U.S.C. § 553. 

11The public dockets for FCC are maintained on the Electronic Comment Filing System, 

which is accessible on the Internet at http://apps.fcc.gov/ecfs.
Page 7 GAO-14-236 Spectrum Management

preclude granting a license to another entity for the same portion of the 

spectrum in the same geographic location. 

• For licenses that are mutually exclusive, FCC typically uses 

auctions to assign licenses for commercial wireless services. 

Auctions are a market-based mechanism used to assign a license 

to the entity that submits the highest bid.12 In the report, we refer 

to these licenses as market-based licenses.

• For licenses that are not mutually exclusive, primarily public-safety 

and private-wireless licenses, FCC generally assigns licenses 

through administrative processes. For example, FCC distributes 

some licenses on a first-come, first-served basis, where licenses 

are assigned based on when the license applications were 

submitted.13 To maximize the number of spectrum users, FCC 

often requires license applicants to coordinate. License applicants 

retain a private third-party firm, known as a frequency coordinator, 

to select a frequency that minimizes interference to existing 

licensees. We refer to these licenses as site-based licenses. 

FCC uses its ULS database to assign and track licenses for wireless 

services. ULS operates as a single licensing system used by FCC and 

licensees to apply for, modify, cancel, and take other actions on licenses 

for all wireless services in a uniform manner.

 12Since 1994, when FCC first implemented its auction authority, spectrum auctions have 

generated nearly $52 billion in net offsetting receipts for the U.S. Treasury.

13Congress authorized FCC to impose and collect application processing fees. 47 U.S.C. 

§ 158. These application fees are intended to cover FCC’s costs related to licensing 

communication service providers. For example, as of August 23, 2013, the new license 

fee for a private point-to-point microwave license is $270. 
Page 8 GAO-14-236 Spectrum Management

FCC has established buildout requirements for most wireless services, 

including paging, cellular, land mobile radio, and wireless 

communications services (see appendix II).14 FCC officials said that the 

Commission makes every effort to ensure efficient use of each spectrum 

license, and, in line with these efforts, FCC uses buildout requirements to 

help ensure that spectrum is put to use. FCC establishes buildout

requirements for wireless services through its rulemaking process, and 

the buildout requirement for each wireless service is tailored to the 

particular service. According to FCC officials, they take into account, 

when setting buildout requirements, (1) stakeholders’ comments about 

the proposed requirements in the notice of proposed rulemaking; (2) the 

characteristics of the relevant spectrum in terms of propagation of the 

signal through space and its interaction with obstacles, which could affect 

the infrastructure costs for the intended coverage;

15 and (3) the types of 

service in adjacent spectrum, including considerations of harmful 

interference with those services.

Buildout requirements have three common features, which vary based on 

the differences in wireless services.

• Type of requirement. This refers to the benchmark or outcome 

that a licensee must meet. There are three types of requirements. 

A population or geographic coverage requirement sets the 

percentage of the license’s population or geographic area, 

respectively, that must be covered by service. A construction 

requirement requires that the system operate consistent with the 

rules governing the service, specified in the license, by a specific 

time. Lastly, a “substantial service” requirement describes the 

level of service that must be provided in narrative terms rather 

than in absolute, numeric benchmarks, such as with a coverage 

 14FCC has not set buildout requirements for only a few wireless services including 

personal radio services like citizens band (CB) radio and family radio services, which both 

use two-way communications similar to walkie-talkies. An individual license is not 

required to use many personal radio services; rather, FCC certifies devices that may be 

used for these services, generally through the rulemaking process (commonly termed 

“licensing by rule”). Anyone who is eligible is thus authorized to purchase and operate 

technically compliant and FCC-approved devices in accordance with the operational 

requirements of the rules.

15Different frequency radio signals propagate differently. Signals at lower frequencies, for 

instance, can travel through buildings and other objects better than signals at higher 

frequencies. Different propagation characteristics are better suited for different services, 

and can thus influence the licensee’s infrastructure needs and costs.

FCC Establishes 

Buildout 

Requirements for 

Most Wireless 

Services 
Page 9 GAO-14-236 Spectrum Management

requirement.16 When FCC establishes a substantial service 

requirement, it sometimes includes “safe harbors” in the 

rulemaking documents. Safe harbors illustrate specific ways that 

a licensee could demonstrate substantial service for a particular 

wireless service, such as constructing a certain number of pointto-point links or serving populations that are outside areas served 

by other licensees.

• Number of benchmarks. This refers to whether the licensee must 

complete the buildout requirement by one deadline, or whether the 

licensee must complete multiple requirements in stages with 

corresponding deadlines. When FCC sets more than one 

benchmark and thus deadline for a license, it refers to the 

requirements as the interim and final requirements or as the first 

requirement, second requirement, and so forth.

• Length of buildout period. This refers to the length of time from the 

grant of a license to the buildout deadline or deadlines.

We examined five wireless services, which have buildout requirements 

that vary in each of the features discussed above (see table 3). Licenses 

in these five services are subject to all three types of requirements 

described above. For example, FCC set a substantial service 

requirement for 39 GHz licenses. In the rulemaking proceeding for 39 

GHz, FCC stated that setting a substantial service requirement would 

permit flexibility in licensees’ system design, as the types of possible 

service vary tremendously and may develop in unpredictable ways. For 

some services, FCC gave licensees the option to choose the type of 

requirement. For Broadband PCS, FCC set a population coverage 

requirement, but also provided the alternative of meeting a substantial 

service requirement. In terms of the number of benchmarks, FCC set two 

benchmarks for the Broadband PCS (depending on the license) and 220 

MHz services and set a single benchmark for the other three services we 

selected. The lengths of the buildout period for the five services range 

from 12 months (for industrial/business private land mobile radio) to 10 

years (for all three market-based services). 

 16“Substantial service” is defined in regulation as “service which is sound, favorable, and 

substantially above a level of mediocre service which just might minimally warrant a 

renewal.” 47 C.F.R. § 22.940(a)(1)(i).
Page 10 GAO-14-236 Spectrum Management

Table 3: FCC Buildout Requirements for Selected Wireless Services, as of January 2014

Service Buildout requirement(s) Features of buildout requirement(s)

Broadband PCS 30 MHz Licenses

Alternatively, licensees may provide substantial service to their 

licensed area within the appropriate 5- and 10-year benchmarks.

: Provide service to at least 1/3 of the 

population in licensed area within 5 years of initial license grant, 

and 2/3 of the population within 10 years of initial license grant.

Type: Population coverage requirement, 

with substantial service alternative

Number of benchmarks: 2

Length: 5 and 10 years

10/15 MHz Licenses Type: Population coverage requirement, 

with substantial service alternative

: Provide service to at least 1/4 of the 

population in licensed area within 5 years of initial license grant, 

or alternatively substantial service within 5 years of initial license 

grant.

Number of benchmarks: 1

Length: 5 years

220 MHz phase II 

auctioned licenses

Nationwide Licenses Type: Population or geographic coverage 

requirement, with substantial service 

alternative

: Provide coverage to a composite area of 

750,000 square kilometers or 37.5 percent of the U.S. 

population within 5 years of initial license grant, and 1,500,000 

square kilometers or 75 percent of the population within 10 

years of initial license grant.

Alternatively, nationwide licensees may meet the construction 

requirements by demonstrating an appropriate level of 

substantial service at the 5- and 10-year benchmarks.

Number of benchmarks: 2

Length: 5 and 10 years

Economic Area (EA) or Regional Licenses Type: Population coverage requirement, 

with substantial service alternative

: Provide coverage to 

at least 1/3 of the population in the licensed area within 5 years 

of initial license grant, and 2/3 of the population within 10 years 

of initial license grant.

Alternatively, EA or Regional licensees may meet their 

construction requirements by providing an appropriate level of 

substantial service at 5- and 10- year benchmarks.

Number of benchmarks: 2

Length: 5 and 10 years

39 GHz geographic 

licenses

Provide substantial service to its licensed area within 10 years of 

initial license grant.

Type: Substantial service requirement

Number of benchmarks: 1

Length: 10 years

Industrial/business 

private land mobile radio 

below 700 MHz

Must be placed into operation within 12 months of license grant. Type: Construction requirement

Number of benchmarks: 1

Length: 12 months

Fixed microwave Must be placed in operation within 18 months of initial license 

grant.

Type: Construction requirement

Number of benchmarks: 1

Length: 18 months

Source: GAO analysis and presentation of FCC information.

Under some circumstances, a particular license may not be subject to a 

buildout requirement, even if FCC established buildout requirements in 

the wireless-service rules for the license. For the three market-based 

services we examined, for example, a licensee can divide its license into 

smaller pieces by disaggregating or partitioning, which divides the 
Page 11 GAO-14-236 Spectrum Management

assigned spectrum into smaller amounts of bandwidth or smaller 

geographical areas, respectively. In such cases, some of the resultant 

licenses may not have buildout requirements because the requirements 

are met by one of the other pieces of the original license. For example, for 

Broadband PCS licenses, parties seeking to disaggregate a license must 

decide which party will be responsible for meeting the buildout 

requirements or agree to share responsibility for meeting the 

requirements. Additionally, fixed-microwave and private land-mobile-radio 

licenses that authorize certain temporary or itinerant use of the spectrum, 

such as construction work or event planning, would not normally include a 

buildout requirement, since the license does not permit any long-term or 

ongoing operations. 

In other circumstances, licenses for industrial/business private land 

mobile radio and fixed microwave site-based services can authorize the 

use of multiple frequencies. For industrial/business private land-mobileradio licenses, for example, the purpose of authorizing multiple 

frequencies is to improve the efficiency of a multi-user system in which 

users can use any available channel; it is similar to a multi-lane highway 

in which cars can use any lane. In such cases, FCC sets a buildout 

requirement for each frequency authorized by the license. If a licensee 

fails to construct for a given frequency, FCC automatically terminates the 

authorization to use that frequency as of the buildout deadline. If all the 

frequencies for a license are terminated, FCC will terminate the license.17

 17There is an intermediate step for terminating site-based licenses. Each frequency 

authorized by a license is identified by a location number. So, as noted, if a buildout 

requirement for a frequency is not met, then the frequency is terminated. Next, if all of the 

frequencies at a particular location are terminated, the location is terminated. Finally, if all 

of the locations for a license are terminated, then the license is terminated. Also, as noted 

in the next section, FCC places licenses in a termination-pending mode for 30 days before 

terminating a license.
Page 12 GAO-14-236 Spectrum Management

To enforce buildout requirements for wireless services, FCC requires 

licensees to self certify that they met buildout requirements and 

automatically terminates licenses that fail to do so, in line with FCC rules. 

Through ULS—the computerized system FCC and licensees use to 

process and track licenses for all wireless services—licensees submit 

notifications to inform FCC that a requirement is met.18 However, if the 

licensee does not notify FCC that it met a buildout requirement in a timely 

manner, FCC takes steps through ULS to terminate the license. 

Specifically, ULS is programmed to automatically carry out steps to 

terminate a license. Thirty days after a buildout deadline, ULS puts a 

license into “termination pending” mode. FCC releases a weekly public 

notice of all the market-based and site-based licenses that entered 

termination-pending mode. If a licensee does not file a petition for 

reconsideration within 30 days of the public notice demonstrating that it 

timely met the requirement, ULS will automatically terminate the license 

 18Licensees must notify FCC within 15 days of the buildout deadline. 47 C.F.R. § 

1.946(d). FCC officials noted that the Commission’s rules provide that filings due on a 

weekend, holiday, or day that the Commission closes early and does not reopen may be 

timely filed on the next business day; as a result, some required notifications dated more 

than 15 days after a license’s buildout deadline may be timely. 

FCC Enforces 

Buildout 

Requirements 

through Automated 

Processes and Staff 

Reviews and 

Followed Its Process 

for Selected Wireless 

Services

FCC Enforces Buildout 

Requirements Primarily in 

Response to Licensee 

Actions 
Page 13 GAO-14-236 Spectrum Management

effective as of the buildout deadline.19 Once terminated, the license is 

then made available for re-assignment or re-auction.20 

Beyond the automated steps involving the termination of licenses 

discussed above, FCC primarily enforces buildout requirements for 

wireless services by responding to information provided by licensees. In 

particular, licensees submit information to FCC in ULS through filings, 

which FCC responds to through automatic processes or staff reviews, 

depending on the type of filing.21 While FCC responds to licensee filings, 

it does not actively monitor licensee performance on buildout 

requirements for wireless services; that is, FCC does not send teams out 

to determine the extent of a licensee’s buildout. Through ULS, FCC 

officials told us they have the ability to examine outcomes related to the 

buildout requirements. While FCC enforces buildout requirements for 

individual licenses, it does not maintain a comprehensive program that 

monitors overall licensee compliance with buildout requirements within a 

service or across services. 

Automatic processes. For licensee filings that do not require evaluation, 

FCC automates the responses to be carried out in ULS. In general, two 

specific filings—the required notification for site-based services and 

request to cancel a license—are automatically reviewed in ULS. 

According to FCC officials, no formal review is needed for required 

notifications for site-based licenses because the licensee is certifying that 

it met the conditions laid out in the license. In addition, a licensee may 

apply to cancel a license at any time, including before or after a buildout 

requirement is due. Unless a licensee has other pending applications, an 

application to cancel a license is automatically approved.

Staff reviews. In contrast, some licensee filings require evaluation, so 

FCC staff must review these notifications and requests. In particular, FCC 

staff review is required for notifications for market-based licenses (that is, 

 19The ULS auto termination process was implemented on February 1, 2006, for licenses 

with buildout deadlines that fell on or after that date. 

20A license is made available for such reassignment unless FCC rules provide that the 

spectrum covered by the license would automatically revert to another license holder.

21FCC may also take enforcement action in response to complaints filed by third parties or 

based on information obtained through other avenues.
Page 14 GAO-14-236 Spectrum Management

licenses assigned through auctions), as well as all requests for 

extensions and requests to accept late-filed required notifications.

• Required notification. As with site-based services, a market-based 

licensee must file a required notification to notify FCC that it met 

its buildout requirement. Compared to the specific parameters set 

in site-based licenses, FCC officials said that market-based 

licenses tend to give licensees more flexibility in how to use 

spectrum or deploy service; therefore, FCC requires additional 

documentation—like information on the technology used in a 

system—to help assess whether a licensee met its buildout 

requirement. FCC specifies what additional documentation is 

required in the rules for a wireless service or a public notice. For 

example, Broadband PCS licensees must submit maps and other 

supporting documents showing compliance with the 5- and 10-

year benchmarks. FCC can also ask a licensee to send additional 

information if needed to determine if the licensee met the buildout 

requirement. 

• Request for an extension. A licensee can also request an 

extension of the buildout deadline. A request for an extension 

must be filed before the licensee reaches the buildout deadline for 

a license. The criteria for when extension requests may be 

granted are laid out in regulation.22 For example, FCC will not 

grant an extension request where delay has been caused solely 

by a failure to obtain financing. In general, the regulation states 

that FCC may grant an extension request if the licensee shows 

that its failure to meet a buildout deadline is due to causes beyond 

its control. For example, extension requests can be granted for 

issues such as a lack of available equipment for a band or 

interference problems with other spectrum users. FCC staff 

review each request to determine whether an extension is 

justified. If an extension request is granted, FCC changes the 

buildout deadline for a license in ULS, but if the request is 

dismissed, the original buildout deadline stands. If a licensee still 

needs additional time after being granted an extension, the 

licensee can request an additional extension.

Beyond individual licensee requests, FCC can grant blanket 

extensions when warranted for a wireless service or group of 

 2247 C.F.R. § 1.946(e).
Page 15 GAO-14-236 Spectrum Management

licenses. According to FCC officials, FCC has considered a 

blanket extension for most or all of the licenses in a service in 

cases where it has observed a relatively high number of extension 

requests. A licensee or stakeholder may also ask FCC to 

consider a blanket extension. FCC granted a blanket extension of 

the 5-year buildout requirement for 220 MHz phase II licenses.23 

When the buildout requirements for these licenses started to come 

due in 2004, numerous licensees filed extension requests. 

Licensees and others said that there was insufficient equipment to 

provide voice communications in the 220 MHz band, so licensees 

collectively would not be able to meet their buildout requirements. 

In the order granting the extension, FCC stated that a 3-year 

extension was warranted because, among other reasons, it would 

provide time for the equipment market to develop.

• Waiver or petition for reconsideration. Licensees can also file 

requests to submit late-filed required notifications in limited 

situations. Specifically, a licensee can file a waiver request or 

petition for reconsideration if it met a buildout requirement but did 

not file a required notification on time. For example, if the license 

has entered termination-pending mode, a licensee can file a 

petition for reconsideration within 30 days of being listed in the 

weekly public notice to prevent the license from terminating. In 

the petition, a licensee must provide the date on which it met the 

buildout requirement, any supporting documentation required by 

the rules, and the reason the notification was not filed on time. To 

be granted a waiver, a licensee must submit any required 

documentation to demonstrate how it met the buildout requirement 

and must meet the wavier standard set forth in FCC rules.

Figure 1 provides further information on the timing of filings related to 

buildout requirements.

 23Specifically, FCC extended the buildout deadline for (1) all 220 MHz phase II economic 

area, regional, and nationwide licenses that timely sought an extension of the applicable 

construction deadline, if the deadline had expired as of the date of the release of the FCC 

order granting the extension; (2) all 220 MHz phase II economic area, regional, and 

nationwide licenses with 5-year construction deadlines falling after the release date of the 

order; and (3) the phase II 220 MHz licenses covered by a notification of substantial 

service filed by one entity. Dismissal of 220 MHz Service Phase II Construction 

Notifications, 19 FCC Rcd. 18,095 (2004); Request of Warren C. Havens for Waiver or 

Extension of the Five Year Construction Requirement for 220 MHz Service, 19 FCC Rcd. 

12,994 (2004).
Page 16 GAO-14-236 Spectrum Management

Figure 1: Overview of FCC Enforcement of Buildout Requirements for Wireless Services

Industry associations and licensees we interviewed generally thought 

FCC’s enforcement process works well. Many stakeholders we 
Page 17 GAO-14-236 Spectrum Management

interviewed said that FCC’s self-certification process is appropriate. For 

example, one expert, three licensees, and officials from an industry 

association indicated that the public, transparent nature of the required 

notifications makes self-certification an effective way to enforce buildout 

requirements. One expert said that self-certification is the most efficient 

method for FCC to collect and manage buildout information, as licensees 

are in the best position to gather and report this information. Moreover, a 

few licensees and industry associations indicated no other approach 

would be feasible given the high volume of wireless-service licenses and 

FCC resource constraints. Furthermore, most of the industry 

associations and licensees we interviewed said that FCC’s ULS system is 

easy to use. For example, one licensee said that the mechanics of 

uploading information in ULS for required notifications and requests for 

extension are straightforward. 

For the five wireless services we reviewed, buildout requirements were 

met for many licenses, and when buildout requirements were not met, 

FCC generally terminated the licenses. Across the five services, we 

found that buildout requirements were met for 75 percent of licenses 

(19,582 of 26,217). For 3 of the 5 services we examined, buildout 

requirements were met for a majority of licenses (see table 4). For the 

other services, buildout requirements were met for half of the 39 GHz 

licenses and 19 percent of 220 MHz licenses. When licensees did not 

meet the buildout requirements, FCC generally proceeded as expected 

by terminating the licenses. A few of our selected services have a 

relatively high percent of licenses terminated because licensees did not 

meet their buildout requirements due to special circumstances. For 

example, FCC terminated 21 percent of the fixed microwave licenses we 

examined, but we found that a single licensee held nearly all—1,955 of 

2,179—of the terminated licenses. 

FCC Followed Its 

Enforcement Process for 

Selected Wireless 

Services, Although a Few 

Delays Could Pose 

Problems for Some 

Licensees
Page 18 GAO-14-236 Spectrum Management

Table 4: Buildout Requirement Outcomes for Licenses, by Wireless Service, Data as of September 1, 2013

Service

Number (%) of 

licenses where the

buildout requirement

was met

Buildout requirement not met Number (%) of 

licenses that did 

not reach the 

buildout 

deadline Total c

Number (%) of 

licenses 

terminated

Number (%) of 

licenses with other 

outcomes a

Broadband PCS

b

3,121 (88%) 57 (2%) 22 (1%) 358 (10%) 3,558 

220 MHz phase II 181 (19%) 529 (55%) 134 (14%) 119 (12%) 963 

39 GHz 839 (50%) 489 (29%) 13 (1%) 331 (20%) 1,672 

Fixed microwave 6,299 (60%) 2,179 (21%) 1,388 (13%) 612 (6%) 10,478

Private land mobile radio 9,142 (96%) 326 (3%) 39 (<1%) 39 (<1%) 9,546

All market-based services 4,141 (67%) 1,075 (17%) 169 (3%) 808 (13%) 6,193

All site-based services 15,441 (77%) 2,505 (13%) 1,427 (7%) 651 (3%) 20,024

Total 19,582 (75%) 3,580 (14%) 1,596 (6%) 1,459 (6%) 26,217

Source: GAO analysis of ULS data.

Notes: See appendix I for additional information on the scope and methodology for the analysis.

Percentages may total to more than 100 due to rounding.

a

For the two site-based services (fixed microwave and private land mobile radio), the licenses in the 

license-terminated column are those for which all frequencies authorized by the license were 

terminated and thus the license was terminated. 

b

Licenses in the other-outcomes category include those that did not meet their buildout requirement 

and remained active for some period of time after the buildout deadline.

c

Licenses in the did-not-reach-buildout-deadline category include those that were (1) canceled on or 

before the buildout deadline, (2) terminated before the buildout deadline, or (3) expired on or before 

the buildout deadline. 

However, buildout requirements were not met for some licenses, and the 

licenses were not terminated—that is, licenses in the “other outcomes” 

category in table 4. In two services—fixed microwave and private land 

mobile radio—there were mixed outcomes because licenses can 

authorize use of multiple frequencies. Such licenses can be terminated, in 

part, with the remainder being active or having no requirements. For 

example, a licensee could meet the requirement for some frequencies but 

not others, resulting in the termination of some frequencies but not the 

license; there were 1,216 fixed-microwave (12 percent) and 13 private 

land-mobile-radio (less than 1 percent) licenses with this outcome. Also, 

a licensee could have some frequencies terminated and not have a 

buildout requirement for other frequencies; 66 fixed-microwave licenses 

(1 percent) and 17 private land-mobile-radio licenses (less than 1 

percent) fit this description. 

The remaining licenses in the other-outcomes category are instances 

where a buildout requirement was not met but a license remained active 
Page 19 GAO-14-236 Spectrum Management

after the buildout deadline, mostly for good reasons. Examining ULS 

license data and other FCC documents, we found that there were 

reasonable explanations—like a licensee canceling a license during the 

automatic termination process or filing a required notification that FCC 

has yet to approve or dismiss—for why most of these licenses were not 

terminated on the buildout deadline. For example, we found that 106 

fixed-microwave licenses in the other-outcomes category were canceled 

during the automatic termination process—that is, within 60 days of the 

buildout deadline.24 For the 220 MHz phase II licenses with other 

outcomes, 110 licenses were canceled during the automatic termination 

process, and 24 licenses had pending required notifications in ULS. 

While there were good reasons why most licenses remained active, there 

were a few instances where ULS contained no explanation. For the 

Broadband PCS licenses, for example, ULS did not contain information 

explaining why 16 licenses were not terminated on the buildout 

deadline.25 The automatic termination process in ULS did not occur until 

2006, after the buildout deadlines for the 16 Broadband PCS licenses. 

Therefore, FCC officials said that while these licenses were terminated 

automatically by rule on the deadline, ULS was not updated to reflect the 

termination for several months after their buildout deadlines.

Lastly, some licenses with buildout requirements did not reach their 

buildout deadlines; as a result, FCC did not have to enforce the buildout 

requirements for these licenses. A license could not reach its buildout 

deadline for three reasons. First, the license could be canceled by the 

licensee on or before the buildout deadline. A license can be canceled by 

a licensee, for example, if it ceases operations and no longer needs the 

license. Second, FCC could terminate a license before its buildout 

deadline if the licensee fails to fulfill a condition of the license or violates a 

rule.26 Third, the license could expire on or before the buildout deadline. 

For example, a buildout deadline could be extended past the license 

expiration date and the licensee could fail to renew the license. The 

 24These 106 licenses make up the remaining 1 percent of fixed-microwave licenses in the 

other-outcomes category in Table 4. For private land mobile radio, the 9 remaining otheroutcome licenses include 6 licenses that were canceled during the auto termination 

process and 3 licenses that were in termination-pending mode as of September 1, 2013.

25The remaining 6 licenses in the other-outcomes category were canceled during the auto 

termination process.

26For example, a license may be automatically terminated if the licensee has failed to 

meet a payment condition for a license obtained through the auction process.
Page 20 GAO-14-236 Spectrum Management

number of licenses in this category varies by service, though a higher 

percentage of market-based licenses did not reach their buildout deadline 

compared to site-based licenses. 

As discussed above, FCC’s enforcement of buildout requirements also 

involves granting or dismissing extension requests. Across the 5 wireless 

services we examined, 9 percent of licenses had an extension request. 

However, this percentage varied substantially across the services (see 

table 5). Extensions were requested for all of the 39 GHz licenses and 

half of the 220 MHz phase II licenses. Our analysis of FCC and licensee 

documents for both services indicated that buildout was largely impeded 

by lack of available equipment. As shown in table 4 above, both these 

services also had a relatively high percent of licenses terminated for not 

meeting buildout requirements. By contrast, less than 1 percent of fixedmicrowave and private land-mobile-radio licenses requested extensions. 

One fixed-microwave licensee we interviewed said that it typically 

constructs the infrastructure for a new license within 2 to 4 months, so it 

has not needed to request an extension of the 18-month buildout 

requirement. 

Table 5: Number of Licenses That Did and Did Not Request Extensions by Wireless Service, Data as of September 1, 2013

Service

Number (%) of licenses that did 

request an extension

Number (%) of licenses that did not 

request an extension Total

Broadband PCS 182 (5%) 3,376 (95%) 3,558 

220 MHz phase II 482 (50%) 481 (50%) 963 

39 GHz 1,672 (100%) 0 (0%) 1,672 

Fixed microwave 26 (<1%) 10,452 (100%) 10,478 

Private land mobile radio 21 (<1%) 9,525 (100%) 9,546 

All market-based services 2,336 (38%) 3,857 (62%) 6,193 

All site-based services 47 (<1%) 19,977 (100%) 20,024

Total 2,383 (9%) 23,834 (91%) 26,217

Source: GAO analysis of ULS data.

Notes: See appendix I for additional information on the scope and methodology for the analysis.

Percentages may total to more than 100 due to rounding.

We found that FCC granted most extension requests it received for the 

five wireless services we examined, as shown in table 6. FCC officials 

said that the Commission seeks to be aggressive but pragmatic in its 

enforcement of buildout requirements and is flexible on deadlines when it 

needs to be. FCC officials said that the high rate is due in part to high-
Page 21 GAO-14-236 Spectrum Management

quality extension requests. More specifically, they said a licensee 

typically takes steps before submitting a request—through both internal 

work and informal discussions with FCC staff—to determine whether it is 

likely to receive an extension and thus worth the resources to seek an 

extension. Due to this upfront work, FCC officials said that licensees are 

likely to submit high-quality extension requests and refrain from 

submitting unjustified extension requests, which leads to a high 

percentage of granted requests. 

Table 6: Number of Extension Requests Granted and Dismissed by Wireless Service, Data as of September 1, 2013

Service Number (%) granted Number (%) dismissed Total

Broadband PCS 80 (42%) 109 (58%) 189

220 MHz phase II 365 (54%) 315 (46%) 680

39 GHz 1,688 (83%) 345 (17%) 2,033

Fixed microwave 25 (61%) 16 (39%) 41

Private land mobile radio 150 (96%) 6 (4%) 156

All market-based services 2,133 (74%) 769 (27%) 2,902

All site-based services 175 (89%) 22 (11%) 197

Total 2,308 (74%) 791 (26%) 3,099

Source: GAO analysis of ULS data.

Notes: See appendix I for additional information on the scope and methodology for the analysis.

Since a licensee can request more than one extension for a license, the total number of extension 

requests for each service is greater than the total number of licenses that requested extensions 

presented in table 5. 

Percentages may total to more than 100 due to rounding.

Not surprisingly, we also found that buildout requirements were more 

likely to be met when all extension requests for a license were granted 

(see table 7). For Broadband PCS, buildout requirements were met for 

84 percent of licenses with granted extension requests while buildout 

requirements were met for 40 percent of licenses with dismissed 

extension requests. For 39 GHz, the difference is starker, as buildout 

requirements were met for 63 percent of licenses with granted extension

requests, and buildout requirements were not met for any of the licenses 

with both granted and dismissed extension requests.27 Two of the 39 

GHz licensees we interviewed said they benefitted from being granted an 

 27A licensee may request more than one extension of a buildout deadline, thus a licensee 

could have requests both granted and dismissed. 
Page 22 GAO-14-236 Spectrum Management

extension, as the additional time enabled both licensees to meet the 

buildout requirements for many of their licenses. 

Table 7: Outcomes of Licenses by Wireless Service and Extension Request Outcome, Data as of September 1, 2013

Service

Buildout requirement 

outcome

Request outcome

Total

Number (%) 

granted

Number (%) 

dismissed

Number (%) both 

granted and 

dismissed

Broadband PCS

a

Met 63 (84%) 43 (40%) 0 (0%) 106

Not met or other 12 (16%) 64 (60%) 0 (0%) 76

Total 75 (100%) 107 (100%) 0 (0%) 182

220 MHz phase II Met 43 (23%) 2 (2%) 8 (5%) 53

Not met or other 142 (77%) 128 (99%) 159 (95%) 429

Total 185 (100%) 130 (100%) 167 (100%) 482

39 GHz Met 839 (63%) 0 (0%) 0 (0%) 839

Not met or other 488 (37%) 0 (0%) 345 (100%) 833

Total 1,327 (100%) 0 (0%) 345 (100%) 1,672

Fixed microwave Met 10 (100%) 4 (25%) 0 (0%) 14

Not met or other 0 (0%) 12 (75%) 0 (0%) 12

Total 10 (100%) 16 (100%) 0 (0%) 26

Private land 

mobile radio

Met 17 (100%) 1 (33%) 1 (100%) 19

Not met or other 0 (0%) 2 (67%) 0 (0%) 2

Total 17 (100%) 3 (100%) 1 (100%) 21

Source: GAO analysis of ULS data.

Notes: See appendix I for additional information on the scope and methodology for the analysis.

Percentages may total to more than 100 due to rounding.

a

Since a licensee can request more than one extension, a license could have requests with different 

outcomes, that is, both granted and dismissed. 

Many experts, licensees, and industry associations we interviewed said 

that extensions can be beneficial, but some concerns were raised. Some 

licensees and industry associations we interviewed said that extensions 

of buildout requirements can provide needed flexibility and be in the 

public interest. Officials from one industry association said that licensees 

sometimes encounter an unexpected problem—such as interference with 

other licensees—and need more time to complete the buildout. Officials 

from a few industry associations said that extensions provide flexibility 

when a company has a problem that calls for an extension, especially if a 

large amount of capital has been invested in the buildout. However, a 

few licensees and industry associations said that FCC can be 
Page 23 GAO-14-236 Spectrum Management

inconsistent in granting extensions or that the threshold used to grant 

extensions was unclear. One licensee and officials from two industry 

associations, for example, said that FCC has granted many extensions in 

the past but is now less willing to do so. With respect to the guidance on 

extensions, officials from one industry association said that FCC’s 

process provides no certainty as to whether a licensee will get an 

extension, as they felt that the threshold FCC uses to grant extensions is 

not clear. FCC officials stated that they review requests for extensions on 

a case-by-case basis and analyze whether each request meets the legal 

standard necessary to receive an extension.28 They added that because 

the facts are different for each case, an outside party or licensee might 

observe that the outcomes for extensions were inconsistent, even when 

the criteria are consistent. Moreover, a few experts had negative opinions 

on the frequency with which extensions are granted. One expert said that 

FCC’s extensions have set a precedent of extending buildout 

requirements, which has created an impression that the requirements are 

not necessarily enforced. Similarly, according to another expert, while the 

extensions that FCC grants seem reasonable, granting extensions can 

undermine the purpose of the buildout requirements. 

Though infrequent, instances involving FCC delays in reviewing filings—

both required notifications and extension requests—can pose problems 

for licensees. As noted above, we found that 24 220 MHz phase II 

licenses had filed required notifications that were waiting to be approved 

or dismissed by FCC. Nineteen of these pending required notifications 

were filed 4 or more years ago. A few licensees we interviewed said that 

such delays in processing required notifications for market-based wireless 

services can create uncertainty. For example, two licensees said that 

FCC delays in approving a required notification could cause problems or 

delay the selling or leasing of a license. For extension requests, another 

licensee said that delays in FCC’s response creates risks for licensees 

and can cause a licensee to expedite construction and spend additional 

money in case the extension is not granted and the original buildout 

deadline stands. FCC officials said that they aim to complete reviews as 

quickly as possible, but do not have a target time for completing reviews. 

For required notifications, they added that the time needed to complete a 

review varies depending on the volume of licenses in a service (as many 

required notifications could be submitted at the same time), the staff 

 28See 47 C.F.R. §§ 1.925, 1.946.
Page 24 GAO-14-236 Spectrum Management

resources available, whether a notification contains sufficient information, 

and what other priorities face FCC or WTB at a given time. For requests 

for extensions, FCC officials said reviews can take more time compared 

to other filings as FCC must determine whether the request meets the 

criteria for an extension and often has to ask a licensee for additional 

information to better understand the request, among other things. For the 

19 filings that have been pending for 4 or more years mentioned above, 

FCC noted that all these filings aim to demonstrate that the licensees are 

providing substantial service, and the filings remain pending due to 

resource limitations, workload priorities, and novel policy, legal, and 

technical issues the filings present.

Nearly all licensees and industry associations we interviewed said that 

they support FCC’s having buildout requirements for wireless services 

because the requirements help ensure that spectrum will be put to use. In 

particular, all 10 licensees we spoke with said that they support having 

buildout requirements for spectrum licenses. Licensees mostly said that 

the buildout requirements are effective in preventing spectrum 

warehousing by making licensees accountable for putting the spectrum to 

use within a specified time frame. For example, one licensee elaborated 

that there needs to be some kind of buildout requirement in place or the 

potential for companies to hold spectrum without providing service would 

increase. Similarly, the majority of industry associations that we spoke 

with—6 out of 9—support buildout requirements for the same reasons 

that the licensees cited. However, one association that opposed buildout 

requirements said the requirements are cumbersome for licensees. 

Stakeholders 

Generally Support 

Buildout 

Requirements but 

Identified Changes 

and Alternative Tools 

That They Thought 

Could Better Meet 

Goals

Most Selected 

Stakeholders Supported 

Buildout Requirements but 

Thought the Requirements 

More Effectively Met Some 

Goals Than Others
Page 25 GAO-14-236 Spectrum Management

Officials at another industry association were ambivalent, saying that the 

effectiveness of buildout requirements depends on the type of wireless 

service, as the requirements make more sense for site-based wireless 

services than market-based wireless services. 

In contrast, spectrum policy experts we spoke with were more mixed in 

their opinions, with most experts being either ambivalent about or 

unsupportive of buildout requirements. Two experts who opposed 

buildout requirements said that there are better alternatives for promoting 

spectrum efficiency, such as spectrum sharing and encouraging more 

industry competition. Five experts said that they were ambivalent about 

the requirements for several reasons, including that the requirements are 

set too weak or undermined by FCC’s granting extensions; as previously 

mentioned, extensions were requested for 9 percent of licenses we 

examined, and FCC granted 74 percent of these extension requests. In 

addition, three experts said that the presence of buildout requirements 

can lower auction revenues collected by FCC. According to one expert, 

buildout requirements could force a licensee to deploy a network that 

might not be the most efficient, which could lower the licensee’s expected 

profits and thus willingness to pay for the license. Only one expert 

specifically supported buildout requirements without qualification, stating 

that the requirements make licensees consider whether they will put the 

wireless license to use before they decide to acquire it. 

Beyond these broader stakeholder opinions on buildout requirements, 

stakeholder opinions on the effectiveness of buildout requirements in 

meeting commonly cited goals for the requirements were more varied. Of 

four goals commonly cited for buildout requirements, stakeholders tended 

to report that buildout requirements are effective in meeting two of these 

goals: encouraging licensees to provide service in a timely manner and 

preventing warehousing of spectrum. The stakeholders had mixed views 

on the effectiveness of buildout requirements in meeting the other two 

goals: promoting innovative services and promoting services to rural 

areas.29

 29FCC officials told us that buildout requirements are one tool in a framework used to 

meet its broad goal of promoting the efficient use of spectrum. Beyond this more general 

goal, we reviewed statutes, FCC budget and performance documents, and FCC reports 

and orders from recent rulemaking proceedings to identify four commonly cited goals for 

buildout requirements for wireless-service licenses. 
Page 26 GAO-14-236 Spectrum Management

• Encouraging licensees to provide service in a timely manner.

Many of the stakeholders whom we interviewed said that the 

buildout requirements were effective in meeting this goal. More 

specifically, 9 of 10 licensees and 7 of 9 industry associations said 

that the requirements were effective in meeting this goal because, 

for example, they impose construction deadlines that require 

licensees to put the spectrum to use or surrender the license. In 

contrast, experts were mixed in their opinions, with 4 of 9 experts 

saying the requirements were ineffective.30 For example, one 

expert said that buildout requirements are not effective in 

encouraging timely service because FCC does not set buildout 

requirements that are overly onerous in terms of how long 

licensees have to meet benchmarks. 

• Preventing the warehousing of spectrum. Many stakeholders said 

that the buildout requirements were effective in meeting this goal. 

In particular, 7 of 10 licensees and 6 of 9 industry associations 

said that buildout requirements are effective, while experts were 

mixed. One licensee we interviewed said that buildout 

requirements can create legitimate pressure for licensees to use 

the spectrum or offer it for lease or sale in the secondary market, 

through which FCC enables licensees to lease or sell portions of 

the licensed spectrum rights to others. In contrast, 4 of 9 experts 

said that buildout requirements are ineffective or neither effective 

nor ineffective in helping FCC meet this goal.31 For example, one 

expert said that despite having buildout requirements, FCC’s 

enforcement gives licensees an opportunity to take their time in 

putting the licensed spectrum to use because the licensees can 

apply for waivers and extensions and the buildout requirements 

themselves are not very strict. However, licensees and experts we 

interviewed generally said they did not believe that spectrum 

warehousing is a major problem, in their experience. One 

licensee, for example, said that it does not have an incentive to 

warehouse spectrum because of high consumer demand for its 

services. 

 30Of the remaining experts, two said that the requirements were effective, one replied 

don’t know, and two did not provide an opinion for this goal.

31Specifically, three experts said effective, one said neither, and three said ineffective, 

while two experts did not provide an opinion for the goal.
Page 27 GAO-14-236 Spectrum Management

• Promoting the provision of innovative services throughout the 

license areas. All three groups of stakeholders were mixed in their 

views on the effectiveness of buildout requirements in promoting 

innovative services. Licensees and industry associations mostly 

reported that they thought buildout requirements were neither 

effective nor ineffective in meeting this goal, and a majority of the 

experts said that buildout requirements are ineffective in 

promoting innovative services. For example, three licensees said 

that innovative services are not directly related to buildout 

requirements because market forces, such as consumer demand 

and competition, are what drive innovation. Moreover, two 

licensees and three experts said that buildout requirements could 

actually be counter-productive by causing licensees to use older 

or less innovative technologies to deploy service more quickly. 

• Encouraging the provision of services to rural areas. Stakeholders 

were mixed in their views about whether buildout requirements 

help promote services in rural areas. For example, four licensees 

said that the buildout requirements were effective while four said 

they were ineffective, and five experts said that the requirements 

were effective while two experts said they were ineffective. The 

licensees and industry association representatives noted that 

building out to rural areas is difficult and expensive and the high 

costs associated with construction in these areas are rarely 

recovered by providing service to sparsely populated areas with 

few customers. A few stakeholders across all three groups added 

that geographic coverage requirements are more effective in 

promoting rural service than population coverage requirements. 

For example, one industry association said that geographic 

coverage requirements better promote rural buildout, particularly 

for licenses covering large geographic areas; if a large 

geographic-area license has a population coverage requirement, a 

licensee might be able to meet the requirement by serving the 

relatively densely populated areas and leaving the rural areas 

unserved.
Page 28 GAO-14-236 Spectrum Management

While buildout requirements are generally supported, some stakeholders 

we spoke with said that the requirements were not effective in meeting 

some of the commonly cited goals, in particular promoting innovative 

services and services to rural areas, as discussed above. Therefore, 22 

of 28 stakeholders we spoke with identified changes that they said could 

improve the effectiveness of buildout requirements for wireless services 

to meet the goals identified above, in particular for market-based 

services.32 The most frequently mentioned changes or enhancements 

include the following: 

• More clarity. Four licensees, two industry associations, and three 

experts said additional clarity could make buildout requirements 

more effective. The four licensees, for example, reported that 

more clarity in the service rules could allow both FCC and 

licensees to better meet goals by removing uncertainty. 

Specifically, stakeholders said more clarity could be provided 

through greater detail about what could constitute substantial 

service33 or about the engineering parameters licensees should 

use in their required notifications. According to one licensee, any 

clarification on a required process or rule is helpful, and for 

buildout requirements, more specific guidance might help 

eliminate some back and forth needed for FCC to approve a 

required notification. FCC officials said that the Commission sets 

specific requirements for waivers and extension requests, as well 

as specific buildout requirements, and that it reviews licensee 

 32Stakeholders that identified changes to current buildout requirements included 9 of 10 

licensees, 6 of 9 associations, and 7 of 9 experts. 

33Greater detail could include setting safe harbors for particular wireless services with 

substantial service requirements. As noted earlier, FCC has established safe harbors for 

some services; safe harbors illustrate specific ways that a licensee could demonstrate 

substantial service, such as constructing a certain number of point-to-point links or serving 

populations that are outside areas served by other licensees.

Stakeholders Identified a 

Variety of Changes and 

Alternative Tools That 

They Thought Could 

Better Meet Commonly 

Cited Goals for Buildout 

Requirements

Changes to Buildout 

Requirements 
Page 29 GAO-14-236 Spectrum Management

notifications and requests on a case-by-case basis. 

• More robust and transparent enforcement. Three industry 

associations, two experts, and a licensee said that the selfcertification process, while efficient and appropriate, could be 

bolstered by more visible enforcement, such as using spot checks 

to verify licensees’ required notifications. For example, one expert 

said that to ensure effectiveness of the buildout requirements, 

FCC could conduct random spot checks to see that licensees are 

providing services upon meeting the buildout requirement. 

Similarly, to increase transparency, an industry association said 

that FCC could better educate licensees about the administrative 

aspects of filing requests or notifications and then conduct spot 

checks and issue fines if licensees are not providing services. 

These licensees and industry associations also said that more 

consistent enforcement entails more transparency and 

consistency in FCC’s processes for granting extensions and 

waivers. 

• Different penalties. Some stakeholders—two licensees and two

experts—said that FCC could change the penalty for not meeting 

a buildout requirement. Many licensees, industry associations, 

and experts said that the penalty of license termination was too 

strict. Specifically, officials from one industry association said that 

with termination, licensees face the loss of all their investment in 

constructing infrastructure if they have to surrender the license for 

not meeting buildout requirements. Some of these stakeholders 

favored a use-it-or-share-it approach whereby a licensee would 

have to make spectrum for which it did not meet a buildout 

requirement available to others through leasing or sharing. 

According to one expert, use it or share it could create 

opportunities for other users to benefit by using spectrum that is 

lying fallow more immediately, even if only temporarily, or 

providing a stronger incentive for a licensee to make secondary 

market arrangements to put spectrum to use. 

• More opportunities to align licensees’ goals with buildout 

requirements. Two licensees and one industry association noted 

that FCC’s buildout requirements do not necessarily align with a 

licensee’s business plans, particularly for market-based services. 

Two licensees said FCC could provide more upfront feedback to 

licensees on whether a licensee’s plan to meet a buildout 

requirement would be accepted by the Commission. These 

licensees said that through such early interaction with FCC, 
Page 30 GAO-14-236 Spectrum Management

licensees might invest in building their systems and meet buildout 

requirements in tandem, rather than potentially having to invest in 

additional infrastructure simply to meet a buildout requirement to 

save a license. For example, one licensee said it currently has to 

consider two parallel tracks—its business plan and FCC buildout 

requirements—when building a system, a situation that can 

increase costs and make buildout less efficient. The licensee 

believed it could more efficiently construct its system if these two 

tracks could be brought closer together early in the license term. 

FCC officials told us that licensees can engage with FCC to obtain 

informal guidance before filing notifications to discuss the 

sufficiency of their plans and avoid potential problems. One 

industry association also said that FCC could provide licensees 

with additional ways to demonstrate meeting a buildout 

requirement, beyond a single requirement or safe harbor for 

substantial service, to distinguish licensees that are warehousing 

spectrum from those who are working to put it to use. 

In addition to changes to buildout requirements, stakeholders from each 

of the three groups we spoke with identified alternatives to buildout 

requirements that they said could better meet the four commonly cited 

goals, including provision of innovative services and service to rural 

areas. We also identified additional support for stakeholder-identified 

tools and other tools through a review of our previous reports on 

spectrum management and comments filed in response to FCC 

proceedings related to buildout requirements for spectrum licenses.34 

Some alternative tools could be used in place of buildout requirements, 

and others could complement the buildout requirements with the intent to 

better meet the goals and promote efficient use of spectrum. Table 8 

summarizes the alternatives to buildout requirements that stakeholders 

identified as tools that could better meet each of the four commonly cited 

goals. 

 34We reviewed FCC dockets 07-293 In the Matter of Establishment of Rules and Policies 

for the Digital Audio Radio Satellite Service in the 2310-2360 MHz Frequency Band, and 

12-268 In the Matter of Expanding the Economic and Innovation Opportunities of 

Spectrum through Incentive Auctions. FCC requested comments on the proposed buildout 

requirements in the draft rules. The comment periods for these proceedings closed in 

2010 and 2013, respectively. 

Alternative Tools
Page 31 GAO-14-236 Spectrum Management

Table 8: Stakeholder-Identified Replacements for and Complements to FCC Buildout Requirements 

Goal

Secondary 

markets

Reliance on 

market 

forces

Flexible use 

licenses

Spectrum 

sharing

Smaller 

license 

areas Subsidies

Spectrum 

usage fees

Encouraging 

licensees to provide 

timely service

X X X X

Promoting 

innovative services

X X

Providing service to 

rural areas

X X

Preventing 

warehousing of 

spectrum

X X X

Source: GAO analysis of interviews and reports.

• Secondary markets. FCC enables licensees to make transactions 

through secondary markets, such as leasing spectrum rights to 

other licensees; this process facilitates licensees selling or leasing 

unneeded spectrum rights by negotiating their own terms.35 Three 

licensees and two experts said that these transactions could 

promote the provision of timely service by allowing for accelerated 

transactions to a licensee that wants to deploy wireless services 

sooner and without the additional time needed for FCC review of 

the transaction. Some of these licensees and experts also said 

that this alternative may help better meet the goal of preventing 

spectrum warehousing by allowing a licensee, which does not 

want to deploy service in the spectrum in the near future, to 

recover costs by leasing or selling the spectrum rights to others 

that want to put the spectrum to use more immediately. 

• Reliance on market forces. A few licensees and experts said that 

relying more on market forces could help spur competition and 

ultimately encourage licensees to provide timely and innovative 

services. FCC already relies on market forces to some degree by, 

for example, auctioning licenses. Three licensees and two experts 

we spoke with said that FCC could further implement or bolster 

policies to promote competition that better motivate licensees to 

 35See also GAO, Telecommunications: Enhanced Data Collection Could Help FCC Better 

Monitor Competition in the Wireless Industry, GAO-10-779 (Washington, D.C.: July 27, 

2010). 
Page 32 GAO-14-236 Spectrum Management

build or expand their networks and provide services more quickly 

than buildout requirements alone. Furthermore, one expert said 

that FCC already promotes competition among existing licensees 

as well as encouraging entry for others through the auctioning 

process, so buildout requirements are not needed in settings 

where there is sufficient competition to encourage licensees to 

acquire and put spectrum to use. 

• Flexible-use licenses. With traditional licenses, the use or service 

is limited to the specific terms of the license (e.g., broadcast a 

television signal in a specific geographic market), but flexible-use 

licenses allow for a wider array of uses without having to seek 

additional FCC authorization.36 Therefore, several stakeholders 

we spoke with said that FCC could do more to allow flexible-use 

licenses and that this might speed up wireless service deployment 

and help meet the goal of promoting timely service. FCC officials 

said that the Commission does propose to issue flexible-use 

licenses when circumstances permit but that flexible-use licenses 

are not appropriate for allowing certain services in specific bands, 

such as broadcast services in a mobile wireless band, or when 

technical limitations of a band limits flexibility. According to 

stakeholders, flexible-use licenses could also help promote 

innovative services. One licensee, for example, said that flexibleuse licenses allow it to update its networks and technology without 

changing bands or asking FCC to modify licenses. 

• Spectrum sharing. Through our interviews and review of two FCC 

proceedings, three experts and one licensee reported that 

enabling spectrum sharing may encourage licensees to put 

licensed spectrum to use while allowing them to increase 

efficiency in their business plans. This cooperative use of 

spectrum, with multiple users agreeing to access the same 

spectrum at different times or locations, could allow licensees to 

provide service more quickly and help prevent warehousing of 

spectrum.37 For example, one licensee said that having a 

spectrum-sharing policy would be a good supplement to buildout 

requirements; specifically, if a licensee does not meet its buildout 

 36See also GAO, Spectrum Management: Incentives, Opportunities, and Testing Needed 

to Enhance Spectrum Sharing, GAO-13-7 (Washington, D.C.: Nov. 14, 2012).

37See also GAO-13-7.
Page 33 GAO-14-236 Spectrum Management

requirements, FCC could require that the licensee negotiate 

sharing or leasing for the unused part of the license to help put it 

to use in timely manner. Similarly, one expert said sharing could 

enable others to put spectrum to use in cases where the licensee 

is not ready to use the spectrum, thus putting the spectrum to use 

more quickly, and might help discourage licensees from 

warehousing spectrum.

• Smaller license areas. Through our interviews and review of FCC 

proceedings, two licensees and two experts we spoke with said 

smaller geographic area licenses could better encourage service 

to rural areas. One licensee said that for market-based services, 

auctioning smaller-sized licenses could allow entities, such as 

rural wireless licensees, to bid on the specific areas they want to 

serve. One industry association commented that a larger 

inventory of smaller, and likely more affordable, licenses might 

attract the small and rural providers that best know and can best 

serve rural areas. Also, as previously discussed, another industry 

association commented that licensing exclusively by larger blocks 

could disfavor competition and discourage deployment of services 

in rural and less densely populated areas. 

• Subsidies. Through interviews, two licensees and two experts 

said that using subsidies would be a more effective way to help 

promote service to rural areas. One example of a subsidy is the 

Universal Service Fund, in which FCC establishes programmatic 

goals and distributes a subsidy to assist in efforts to increase 

nationwide access to advanced wireless services.38 Two experts 

said that the buildout requirements are vague and represent a 

crude and untargeted approach to addressing a specific goal like 

promoting services to underserved and unserved areas in rural 

locations. For example, one expert said that while a specially 

designed buildout requirement may be effective in prompting a 

licensee to provide service to rural areas, using a subsidy to 

procure an entity that is willing to provide service would be a more 

direct and effective way to meet the goal. One licensee said that 

 38In 2011, the FCC set a budget of $4.5 billion annually over six years (2011-2016) for the 

high-cost program within the Universal Service Fund and, among other reforms, 

established support for mobile voice and broadband. GAO, Telecommunications: FCC 

Has Reformed the High-Cost Program, but Oversight and Management Could be 

Improved, GAO-12-738 (Washington, D.C.: July 25, 2012).
Page 34 GAO-14-236 Spectrum Management

buildout requirements have a limited ability to promote service to 

rural areas since it is often not economical for a licensee to build a 

system in areas that are sparsely populated; in these cases, 

subsidies can better encourage licensees to serve these areas. 

• Spectrum usage fees. A few licensees we interviewed said 

spectrum usage fees may be a good alternative to buildout 

requirements to help prevent spectrum warehousing, particularly 

for licenses not obtained through auctions. Usage fees could help 

encourage licensees to use spectrum more efficiently or pursue 

sharing opportunities once they bear the opportunity cost of letting 

licensed spectrum sit idle.39 For example, one licensee said that if 

spectrum is made available for free, a licensee may have less 

incentive to put it to use or use it efficiently compared to a licensee 

that bought its spectrum at auction. For this reason, a few 

licensees noted that when FCC began using auctions to assign 

spectrum, there was a debate about whether buildout 

requirements were needed for auctioned licenses since those who 

paid to acquire spectrum have demonstrated their commitment to 

use the spectrum by paying for it. 

We provided a draft of this report to FCC for review and comment. FCC 

provided technical comments that we incorporated throughout the report 

as appropriate. 

As agreed with your office, unless you publicly announce the contents of 

this report earlier, we plan no further distribution until 30 days from the 

report date. At that time, we will send copies to the Chairman of the 

Federal Communications Commission and the appropriate congressional 

commitees. In addition, the report will be available at no charge on GAO’s 

website at http://www.gao.gov. 

 39See GAO-13-7. In this report, FCC officials said that the Commission has proposed 

spectrum usage fees at various times including in its congressional budget submission, 

but FCC has not received legislative authority to implement such a program. 

Agency Comments 
Page 35 GAO-14-236 Spectrum Management

If you or your staff have any questions about this report, please contact 

me at (202) 512-2834 or goldsteinm@gao.gov. Contact points for our 

Offices of Congressional Relations and Public Affairs may be found on 

the last page of this report. GAO staff who made key contributions to this 

report are listed in appendix IV.

Mark L. Goldstein 

Director, Physical Infrastructure
Appendix I: Objectives, Scope, and 

Methodology

Page 36 GAO-14-236 Spectrum Management

This report examines Federal Communications Commission (FCC) 

buildout requirements for wireless services and the efficient use of 

spectrum. In particular, this report provides information on (1) the 

buildout requirements established by FCC for spectrum licenses for 

wireless services, (2) the extent that FCC follows its process to enforce 

buildout requirements for wireless services, and (3) stakeholder opinions 

on the extent that goals for buildout requirements have been met.

To describe FCC buildout requirements for wireless services, we 

reviewed FCC regulations and guidance on buildout requirements for 

services that use spectrum. We also interviewed FCC officials to 

understand which services have buildout requirements, the general 

process used to set buildout requirements for a service, and what factors 

FCC considers when setting buildout requirements for a service. 

According to FCC, the Wireless Telecommunications Bureau (WTB) is 

responsible for granting and monitoring licenses for wireless services that 

use spectrum. For this review, we focused on guidance and processes 

related to buildout requirements for licenses for wireless services, which 

amounts to nearly 2 million licenses.1

 

To describe FCC’s enforcement process, we reviewed FCC regulations 

and guidance to determine the steps FCC takes to monitor and enforce 

buildout requirements for wireless services. In addition, we interviewed 

FCC officials to learn about different parts of the enforcement process to 

determine licensee responsibilities and actions, FCC responsibilities and 

actions, and which FCC actions are automated in the Universal Licensing 

System (ULS) licensing database. 

To examine FCC’s enforcement of buildout requirements for wireless 

services, we selected five wireless services and analyzed data on them 

from FCC’s ULS database. We selected the five services to ensure 

variety in type of service or use, type of buildout requirement (e.g., 

population coverage or substantial service), how licenses were assigned 

(e.g., auctions), and the number of licenses in the service. We also 

considered recommendations from FCC officials and other interviewees 

when selecting among wireless services. As a result, we selected three 

 1

Wireless services include cellular telephone, paging, personal communications services, 

and other commercial and private radio services. FCC also sets buildout requirements for 

satellite, broadcast, and public-safety communications spectrum licenses that are 

administered by other bureaus, which we did not study in detail for this review. 

Appendix I: Objectives, Scope, and 

Methodology
Appendix I: Objectives, Scope, and 

Methodology

Page 37 GAO-14-236 Spectrum Management

market-based services—broadband personal communications service 

(PCS), 220 megahertz (MHz) phase II, and 39 gigahertz (GHz)—and two 

site-based services—industrial/business private land mobile radio below 

700 MHz and fixed microwave.2

 Tables 1 and 3 in the report provide 

information on how each selected service aligns with the criteria we used 

to select wireless services. The results of the data analysis for these five 

services are not generalizable to other wireless services.

For the five selected wireless services, we analyzed data for licenses that 

would have buildout requirements on or before December 31, 2012.3

 We 

picked December 31, 2012, to allow sufficient time after the buildout 

deadline for any licensee or FCC action—such as FCC review of a 

licensee’s notification that it met the requirement—to occur and be 

entered in ULS. For the market-based services, we included all licenses 

that would have a buildout requirement on or before December 31, 2012, 

based on the auction dates for the licenses and the length of the buildout 

requirement in regulation. For example, we included Broadband PCS 

licenses awarded at auctions between 1995 and 2007; since these 

licenses have a 5-year buildout requirement, the buildout deadlines fell 

between 2000 and 2012.4

 For site-based services, we similarly sought to 

include licenses that would have buildout requirements due on or before 

December 31, 2012. However, due to the high volume of licenses in 

these two services, we limited our analysis to new licenses that would 

have a buildout requirement during calendar year 2012; that is, we did not 

include modifications to existing licenses, for which FCC also includes 

buildout requirements. Private land-mobile-radio licenses below 700 

 2

FCC uses radio service codes to categorize licenses by wireless service in ULS, which 

we used to identify licenses in our selected wireless services. For the three market-based 

services, broadband PCS licenses are coded CW, 220 MHz phase II licenses are coded 

QA, and 39 GHz licenses are coded TN. For the two site-based services, multiple radio 

service codes corresponded to each selected service. We excluded radio service codes 

for public safety licenses or licenses that have a strong or dominant federal use, such as

commercial aviation. As a result, only industrial/business private land-mobile-radio 

licenses coded IG and YG and fixed-microwave licenses coded CF and MG were included 

for these two services.

3

For the selected wireless services, we excluded licenses for special temporary authority 

(STA). According to FCC, STA licenses are granted for short periods of time, including 

emergency situations, so the licenses are not subject to buildout requirements.

4

All broadband PCS licenses have a 5-year buildout requirement either as a first 

requirement (for 30 MHz licenses) or as the only requirement (for 10 and 15 MHz 

licenses). We excluded broadband PCS licenses awarded at auction 78 in 2008 from the 

analysis since no buildout requirements would come due until 2013.
Appendix I: Objectives, Scope, and 

Methodology

Page 38 GAO-14-236 Spectrum Management

MHz, for example, have a 12-month buildout requirement, so we included 

new licenses granted during calendar year 2011 that would have a 

buildout deadline during calendar year 2012. Appendix III contains 

additional information on the number and type of licenses in each 

wireless service included in our analysis, such as the auction numbers 

and dates for market-based services.

For each service, we analyzed license data to determine the outcomes of 

buildout requirements and examine FCC’s enforcement of buildout 

requirements. We used license and application data from the ULS public 

access downloads as of September 1, 2013.5 In particular, we examined 

(1) the number of licenses that did and did not have buildout 

requirements; (2) the outcomes for licenses that had buildout 

requirements; (3) the number of licenses with requests for extensions; 

and (4) for licenses with requests, whether the request was granted or 

dismissed. 

With respect to the outcomes for licenses that had buildout requirements, 

we examined the number of licenses in each wireless service that:

• met the requirement, including whether it met the requirement on 

time or late;

6

• did not meet the requirement and was terminated;

• did not meet the requirement and remained active after the 

buildout deadline; and

• did not reach the buildout deadline, meaning that the license was 

(1) canceled on or before the buildout deadline, (2) otherwise 

 5

FCC updates ULS database downloads for specific wireless radio services on a weekly 

basis. The downloads are available at 

http://wireless.fcc.gov/uls/index.htm?job=transaction&page=weekly. 

6

Licensees must notify FCC within 15 days of the buildout deadline. 47 C.F.R. § 1.946(d).

We categorized a license as meeting the buildout requirement “on time” if its buildout date 

was within 15 days of the buildout deadline. FCC officials noted that the Commission’s 

rules provide that filings due on a weekend, holiday, or day that the Commission closes 

early and does not reopen may be timely filed on the next business day; as a result, some 

required notifications dated more than 15 days after a license’s buildout deadline may be 

timely. 
Appendix I: Objectives, Scope, and 

Methodology

Page 39 GAO-14-236 Spectrum Management

terminated before the buildout deadline, or (3) expired on or 

before the buildout deadline.

For licenses with outcomes that did not appear to align with FCC’s 

enforcement process, we conducted additional research to understand 

the circumstances for these licenses. Specifically, (1) licenses that met 

the buildout requirement late and (2) licenses that did not meet the 

requirement and were not terminated on the buildout deadline. For these 

licenses, we reviewed additional information using ULS’s online license 

search to determine whether FCC followed its enforcement processes. 

We also asked FCC officials about the general circumstances 

surrounding these licenses. Overall, a small percentage of licenses had 

one of these outcomes.

Since some licenses had more than one buildout requirement and thus 

could have more than one outcome, we developed rules to classify these 

licenses. For market-based licenses with more than one buildout 

requirement on or before December 31, 2012, we generally classified the

license’s buildout outcome by the outcome for the second buildout 

requirement. For example, if a first buildout requirement was met but the 

license was canceled before the second buildout requirement, we 

classified the outcome as “canceled on or before buildout requirement.” 

However, to be classified as “met,” both the first and second requirement

had to be met for a license. For the site-based services, a license can 

authorize multiple frequencies, and each frequency could have a buildout 

requirement. For each site-based license, we assessed the outcomes for 

all frequencies and used this information to report an outcome for the 

license. For example, if the buildout requirements were met for all 

frequencies, we classified the outcome as “met.” If the buildout 

requirements were met for some frequencies but not met for other 

frequencies (meaning that those frequencies were terminated), we 

classified the license as “some met/some not met.” When examining 

extension requests for licenses in all five services, we assessed whether 

any extension request was filed for the license.

Based on interviews with FCC officials, as well as reviewing system 

documentation and electronic data testing, we determined that these data 

were sufficiently reliable for our purposes. Appendix III contains detailed 

results of the analysis of ULS data for each of the five selected wireless 

services. 

To assess the effectiveness of FCC’s enforcement, we also selected and 

interviewed a sample of industry associations and licensees. We 
Appendix I: Objectives, Scope, and 

Methodology

Page 40 GAO-14-236 Spectrum Management

conducted semi-structured interviews with industry associations and 

licensees to gather their opinions on FCC’s enforcement process, 

including the clarity of FCC guidance on buildout requirements, the 

timeliness of FCC responses to licensee requests and other applications, 

and their experiences with ULS. We selected both industry associations 

and licensees to cover the five selected wireless services, and we further 

selected licensees to ensure variety in licensee type and size. The 

opinions from these industry associations and licensees are not 

generalizable.

To gather stakeholder opinions on the effectiveness of buildout 

requirements, we selected and interviewed a sample of industry 

stakeholders, including spectrum policy experts, industry associations, 

and licensees. To determine the goals for buildout requirements, we 

reviewed statute, FCC documents from recent rulemakings, and other 

FCC budget and performance documents to identify frequently cited goals 

for buildout requirements. In addition to the general goal of promoting 

efficient or productive use of spectrum, we identified the following four 

goals: 

• encouraging licensees to provide service in a timely manner,

• promoting the provision of innovative services throughout the 

license areas,

• encouraging provision of services to rural areas, and

• preventing the warehousing of spectrum.

We conducted semi-structured interviews with stakeholders to gather 

their opinions on the extent that buildout requirements meet each of the 

four goals as well as reasons or examples to support these opinions (see 

table 9). We also asked what changes, if any, could make buildout 

requirements more effective and what alternative tools FCC could use to 

more directly or better meet the four goals. To select experts, we 

included individuals based on participation in recent GAO reviews on 

spectrum policy, publications on spectrum policy, and recommendations 
Appendix I: Objectives, Scope, and 

Methodology

Page 41 GAO-14-236 Spectrum Management

from other interviewees.7 In particular, we sought to interview individuals 

who appeared at least twice across the criteria or participated in at least 

two recent GAO reviews. We selected industry associations and 

licensees as described above. The views of the selected stakeholders 

we interviewed are not generalizable.

Table 9: Organizations and Individuals Interviewed

Industry associations

Central Station Alarm Association

Competitive Carriers Association

Enterprise Wireless Alliance

Fixed Wireless Communications Coalition 

Forest Industries Telecommunications

Land Mobile Communications Coalition

PCIA – The Wireless Infrastructure Association 

Telecommunications Industry Association

Utilities Telecom Council

Experts

Coleman D. Bazelon, The Brattle Group

Michael Calabrese, New American Foundation

Peter Cramton, University of Maryland

Donald Evans, Fletcher, Heald & Hildreth, PLC

Harold Feld, Public Knowledge

Thomas W. Hazlett, George Mason University School of Law

William Lehr, Massachusetts Institute of Technology

Gregory L. Rosston, Stanford Institute for Economic Policy Research

Scott Wallsten, Technology Policy Institute

Licensees

CSpire

Day Wireless Systems

 7

We considered experts interviewed for GAO, Commercial Spectrum: Plans and Actions 

to Meet Future Needs, Including Continued Use of Auctions, GAO-12-118 (Washington, 

D.C.: Nov. 23, 2011), Spectrum Management: Incentives, Opportunities, and Testing 

Needed to Enhance Spectrum Sharing, GAO-13-7 (Washington, D.C.: Nov. 14, 2012), 

and Spectrum Management: FCC’s Licensing Approach in the 11, 18, and 23 Gigahertz 

Bands Currently Supports Spectrum Availability and Efficiency, GAO-13-78R

(Washington, D.C.: Nov. 20, 2012).
Appendix I: Objectives, Scope, and 

Methodology

Page 42 GAO-14-236 Spectrum Management

IDT Spectrum

National Rural Telecommunications Cooperative

North Dakota Network Co.

Peñasco Valley Telephone Cooperative, Inc.

Southern Company

Sprint

T-Mobile

Verizon

Source: GAO.

To supplement these interviews, we reviewed our previous reports on 

spectrum management and filings in two recent FCC proceedings that 

sought comments on buildout requirements for wireless services. We 

identified and reviewed filings in the dockets for the following two 

proceedings: 07-293, In the Matter of Establishment of rules and policies 

for the Digital Audio Radio Satellite Service in the 2310-2360 MHz 

Frequency Band8 and 12-268, In the Matter of Expanding the Economic 

and Innovation Opportunities of Spectrum Through Incentive Auctions.

9

 

For each proceeding, we reviewed filings made by licensees, industry 

associations, and other companies and associations and summarized 

opinions on whether buildout requirements are effective and any changes 

that could be made to improve buildout requirements. 

 8

Federal Communication Commission Requests Comment on Revision of Performance 

Requirements for 2.3 GHz Wireless Communications Service, FCC document 10-46 

(2010).

9

In the Matter of Expanding the Economic and Innovation Opportunities of Spectrum 

Through Incentive Auctions, FCC document 12-118 (2012). Due to the high number of 

filings in this docket, we did not review filings made by individuals.
Appendix II: Buildout Requirements for 

Spectrum Licenses

Page 43 GAO-14-236 Spectrum Management

Table 10: Buildout Requirements for Private and Commercial Land-Mobile Radio Services, as of January 2014 

Radio service/frequency band Construction/coverage requirements

Radio service 

code 47 C.F.R. Section

220 MHz (Public Safety) Construct and place into operation within 12 months of 

initial license grant date, or the authorization cancels 

automatically and must be returned to the Commission. 

Alternatively, may apply for extended implementation -

up to 3 years may be authorized for constructing and 

placing a system in operation.

QM 90.725(f), 90.727

220 MHz Phase I (Nationwide 

Licenses)

Construct and place into operation at least 10 percent of 

designated geographic areas within 2 years of initial 

license grant, 40 percent within 4 years, 70 percent

within 6 years, and 100 percent of the designated 

geographic areas within 10 years of initial license grant. 

Each benchmark has a requirement for base stations to 

be operational in specific urban areas.

NC 90.725(a)

220 MHz Phase I (NonNationwide Licenses)Construct and place into operation within 12 months of 

initial license grant date.

QD, QO, QT 90.725(f), 90.757(b)

220 MHz Phase II (Nationwide 

Licenses)

Provide coverage to a composite area of 750,000 

square kilometers or 37.5 percent of the US population 

within 5 years of initial license grant, and 1,500,000 

square kilometers or 75 percent of the population within 

10 years of initial license grant. Alternatively, nationwide 

licensees may meet the construction requirements by 

demonstrating an appropriate level of substantial service 

at the 5- and 10-year benchmarks.

QA 90.769

220 MHz Phase II (Economic 

Area or Regional Licenses)

Provide coverage to at least 1/3 of the population in the 

licensed area within 5 years of initial license grant, and 

2/3 of the population within 10 years of initial license 

grant. Alternatively, Economic Area or Regional 

licensees may meet their construction requirements by 

providing an appropriate level of substantial service at 5-

and 10- year benchmarks.

QA 90.767

Appendix II: Buildout Requirements for 

Spectrum Licenses

Buildout Requirements for 

Services Licensed by the 

Wireless 

Telecommunications 

Bureau and the Public 

Safety and Homeland 

Security Bureau
Appendix II: Buildout Requirements for 

Spectrum Licenses

Page 44 GAO-14-236 Spectrum Management

Radio service/frequency band Construction/coverage requirements

Radio service 

code 47 C.F.R. Section

Below 700 MHz (except 220 

MHz)

Must be placed into operation within 12 months of 

license grant, or the authorization cancels automatically 

and must be returned to the Commission. Alternatively, 

a local government in the Public Safety Pool may apply 

for extended implementation - up to 5 years may be 

authorized for constructing and placing a system in 

operation.

IG, IK, YG, YK, 

PW, YW, RS

90.155, 90.629

700 MHz Narrowband Public 

Safety (except State Licenses)

Construct and place into operation within 12 months of 

initial grant. Alternatively, may apply for extended 

implementation - up to 5 years may be authorized for 

constructing and placing a system in operation.

SG, SY 90.551, 90.155(b)

700 MHz Narrowband Public 

Safety State Licenses

State must certify substantial service to 1/3 of its

population by June 13, 2014, and 2/3 of its population by 

June 13, 2019. Licensee must certify that the radio 

system has been approved and funded for 

implementation by the deadline date.

SL 90.529

800 and 900 MHz Trunked 

(Excluding Specialized Mobile 

Radio)

Construct and place into operation within 1 year of initial 

license grant. Alternatively, may apply for extended 

implementation - up to 5 years may be authorized for 

constructing and placing a system in operation.

YB, YE, YF, YI, 

YJ, YO, YP, YU

90.631(e), 90.629

800 and 900 MHz Conventional 

(Excluding Specialized Mobile 

Radio)

Construct and place into operation within 1 year of initial 

license grant. Alternatively, may apply for extended 

implementation - up to 5 years may be authorized for 

constructing and placing a system in operation.

GB, GE, GF, GI, 

GJ, GO, GP, GU

90.633(c), 90.629

800 and 900 MHz Trunked 

(Specialized Mobile Radio)

Construct and place into operation within 1 year of 

license grant.

YX, YS, YM, YL 90.631(e-f)

800 and 900 MHz Conventional 

(Specialized Mobile Radio)

Construct and place into operation within 1 year of 

license grant.

GX, GR, GM, GL 90.633(c)

800 MHz Geographic (Economic 

Area) (Channel Blocks D through

V)

Provide coverage to at least 1/3 of the population in the 

licensed area within 3 years of initial license grant, and 

2/3 of the population within 5 years of initial license 

grant. Alternatively, licensees may provide substantial 

service to the licensed area within 5 years of initial 

license grant.

YC, YH 90.685(b)

800 MHz Geographic (Economic 

Area) (Channel Blocks A, B, C)

Provide coverage to at least 1/3 of the population in the 

licensed area within 3 years of initial license grant, and 

2/3 of the population within 5 years of initial license 

grant. In addition, licensees must construct 50 percent

of the total number of channels in their spectrum block in 

at least one location in their licensed area within 3 years 

of initial grant and retain such usage for the remainder of 

the construction period. Alternatively, licensees may 

provide substantial service to the licensed area within 5 

years of initial license grant. In addition, licensees must 

construct 50 percent of the total number of channels in 

their spectrum block in at least one location in their 

licensed area within 3 years of initial grant and retain 

such usage for the remainder of the construction period.

YC, YH 90.685(b)
Appendix II: Buildout Requirements for 

Spectrum Licenses

Page 45 GAO-14-236 Spectrum Management

Radio service/frequency band Construction/coverage requirements

Radio service 

code 47 C.F.R. Section

900 MHz Geographic (Major 

Trading Area)

Provide coverage to at least 1/3 of the population in the 

licensed area within 3 years of initial license grant, and 

2/3 of the population within 5 years of initial license 

grant. Alternatively, licensees may provide substantial 

service to their licensed area within 5 years of initial

license grant. If substantial service at 5 years is elected, 

licensees must notify FCC within 3 years that it is 

electing the substantial service option at 5 years.

YD 90.665(c)

4940-4990 MHz (Public Safety 

4.9 GHz)

Fixed point-to-point stations must be placed into 

operation within 18 months of initial license grant, or the 

authorization for that station cancels automatically. 

There is no time limit for which base and temporary fixed 

stations authorized under a 4940–4990 MHz band 

license must be placed in operation.

PA 90.1209

Intelligent Transportation Service, 

Dedicated Short Range 

Communications Service 

Roadside Units

Construct and place into operation within 12 months 

from the date of registration. Licensees must notify the 

Commission when registered units are placed in 

operation within their construction period.

IQ (PublicSafety), QQ 

(Non-Public 

Safety)

90.155(i)

Source: FCC.

Table 11: Buildout Requirements for Location and Monitoring Services, as of January 2014

Radio service/frequency band Construction/coverage requirements

Radio service 

code

47 C.F.R. 

Section

Geographic Licenses (Economic 

Area)

Multilateration location service available to 1/3 of the 

population within 5 years of initial license grant and 2/3 of 

the population within 10 years of initial license grant. 

Alternatively, licensees may provide substantial service to 

their licensed area within the appropriate 5- and 10-year 

benchmarks.

LS 90.155(d)

Site-Based Licenses Construct and place into operation within 12 months of 

license grant.

LN, LW 90.155(a)

Source: FCC.
Appendix II: Buildout Requirements for 

Spectrum Licenses

Page 46 GAO-14-236 Spectrum Management

Table 12: Buildout Requirements for Cellular Services, as of January 2014

Radio service/frequency 

band Construction/coverage requirements

Radio service 

code 47 C.F.R. Section

First system on each channel 

block, markets 1-90

At least partially constructed and begin providing service to 

subscribers within 36 months of initial license grant.

CL 22.946(a), 22.947

First system on each channel 

block, all markets except for 

markets 1-90 and Gulf of 

Mexico Exclusive Zone.

At least partially constructed and begin providing service to 

subscribers within 18 months of initial license grant.

CL 22.946(a), 22.947

Unserved Areas or Specific 

Facilities

Construct and place into operation within 12 months. CL 22.946(c), 22.947

Source: FCC.

Table 13: Buildout Requirements for Broadband Personal Communications Service (PCS), as of January 2014

Radio service/frequency 

band Construction/coverage requirements

Radio service 

code

47 C.F.R. 

Section

30 MHz Licenses Service to at least 1/3 of the population in licensed area within 5 

years of initial license grant, and 2/3 of the population within 10 

years of initial license grant. Alternatively, licensees may provide 

substantial service to their licensed area within the appropriate 5-

and 10-year benchmarks.

CW 24.203(a)

10/15 MHz Licenses Service to at least 1/4 of the population in licensed area within 5 

years of initial license grant, or alternatively substantial service 

within 5 years of initial license grant. 

CW 24.203(b)

Source: FCC.
Appendix II: Buildout Requirements for 

Spectrum Licenses

Page 47 GAO-14-236 Spectrum Management

Table 14: Buildout Requirements for Narrowband Personal Communications Service (PCS), as of January 2014

Radio service/frequency 

band Construction/coverage requirements

Radio service 

code

47 C.F.R. 

Section

Nationwide Licenses Provide coverage to a composite area of 750,000 square 

kilometers or 37.5 percent of the US population within 5 years of 

initial license grant, and 1,500,000 square kilometers or 75 

percent of the population within 10 years of initial license grant. 

As an alternative to the construction requirements listed above, 

all narrowband PCS licensees may provide substantial service 

to their licensed area within 10 years of initial license grant. 

Licensees electing substantial service must notify FCC at the 5 

year benchmark that they plan to satisfy the substantial service 

requirement.

CN 24.103(a),(d)

Regional Licenses Provide coverage to a composite area of 150,000 square 

kilometers or 37.5 percent of the population of the service area 

within 5 years of initial license grant, and 300,000 square 

kilometers or 75 percent of the population within 10 years of 

initial license grant. As an alternative to the construction 

requirements listed above, all narrowband PCS licensees may 

provide substantial service to their licensed area within 10 years 

of initial license grant. Licensees electing substantial service 

must notify FCC at the 5 year benchmark that they plan to 

satisfy the substantial service requirement.

CN 24.103(b), (d)

Major Trading Area Licenses Provide coverage to a composite area of 75,000 square 

kilometers or 25 percent of geographic area, or 37.5 percent of 

the population in licensed area within 5 years of initial license 

grant; and 150,000 square kilometers or 50 percent of the 

geographic area, or 75 percent of the population within 10 years 

of initial license grant. As an alternative to the construction 

requirements listed above, all narrowband PCS licensees may 

provide substantial service to their licensed area within 10 years 

of initial license grant. Licensees electing substantial service 

must notify FCC at the 5 year benchmark that they plan to 

satisfy the substantial service requirement.

CN 24.103(c), (d)

1910-1915/1990-1995 MHz 

PCS

Substantial service showing within 10 years of the date of initial 

issuance or renewal.

CY 24.203(d)

Source: FCC.
Appendix II: Buildout Requirements for 

Spectrum Licenses

Page 48 GAO-14-236 Spectrum Management

Table 15: Buildout Requirements for Paging and Radiotelephone Services, as of January 2014

Radio service/frequency 

band Construction/coverage requirements

Radio service 

code 47 C.F.R. Section

Site-Based Licenses - Part 

22

Construct within 1 year of license grant. CA, CB, CD, CG, 

CO, CR

22.511

Site-Based Licenses - Part 

90, 929-930 MHz, Exclusive 

Channels

Construct within 1 year of license grant. GS 90.493(b), 22.511

Site-Based - Part 90, 929-

930 MHz, Shared Channels

Construct and place into operation within 12 months of license 

grant.

GS 90.155(a)

Geographic Area 

Commercial Aviation AirGround Systems

Licensees authorized to use more than one megahertz (1 

MHz) of the 800 MHz commercial aviation air-ground spectrum 

allocation must make a showing of substantial service within 5

years of grant of authorization. Substantial service may be 

demonstrated, but is not limited to, either of the following “safe 

harbor” provisions: (1) Construction and operation of 20 

ground stations with at least one ground station located in 

each of the 10 Federal Aviation Administration regions; or, (2) 

Provision of service to the airspace of 25 of the 50 busiest 

airports.

CJ 22.873

Geographic Area Paging 

Licenses

Provide coverage to 1/3 of the population within the licensed 

area within 3 years of initial license grant, and 2/3 of the 

population within 5 years of initial license grant. Alternatively, 

licensees may provide substantial service to the licensed area 

within 5 years of initial license grant. Licensees electing the 

substantial service option must notify FCC of their intention to 

do so within their 3-year construction benchmark.

CP, CZ, GC 22.503(k)

Source: FCC.
Appendix II: Buildout Requirements for 

Spectrum Licenses

Page 49 GAO-14-236 Spectrum Management

Table 16: Buildout Requirements for Miscellaneous Wireless Communication Services, as of January 2014

Radio service/frequency band Construction/coverage requirements

Radio service 

code 47 C.F.R. Section

Lower 700 MHz (Block A 698-

704 and 728-734 MHz; Block B 

704-710 and 734-740 MHz; 

Block E 722-728 MHz)

Provide signal coverage and offer service for at least 

35 percent of the geographic area of each of its license 

authorizations no later than June 13, 2013 (or within 

four years of initial license grant if later than June 13, 

2009). If licensee fails to do so, the license 

authorization will be reduced by 2 years and licensee 

may lose authority to operate in remaining unserved 

areas and other penalties may apply.

Provide service over at least 70 percent of the 

geographic area of authorization by the end of the 

license term. If licensee fails to do so, licensee’s 

authorization for unserved areas will terminate 

automatically and may be subject to license 

termination and other penalties.

If results of first auction in which licensees for such 

authorizations in Blocks A, B, and E are offered do not 

satisfy the reserve price for the applicable block, 

licensee must provide signal coverage and offer 

service over at least 40 percent of the population no 

later than June 13, 2013 (or within 4 years of initial 

license grant if later than June 13, 2009). If licensee 

fails to do so, the license authorization will be reduced 

by two years and licensee may lose authority to 

operate in remaining unserved areas and other 

penalties may apply.

Provide signal coverage and offer service to at least 75 

percent of the population by the end of the license 

term. If licensee fails to do so, licensee’s authorization 

for unserved geographic portions will terminate 

automatically and licensee may be subject to license 

termination and other penalties.

WY 27.13, 27.14(g)(1), 

27.14(g)(2), 27.14(i)

700 MHz Lower Band (Block C 

710-716, 740-746 MHz and 

Block D 716-722 MHz)

Provide substantial service to its licensed area within 

10 years of initial license grant.

WZ 27.13, 27.14(a)

700 MHz Upper Band (Block C 

746-757 MHz and 776-787 MHz)

Provide signal coverage and offer service over at least 

40 percent of the population no later than June 13, 

2013 (or within four years of initial license grant if later 

than June 13, 2009). If licensee fails to do so, the 

license authorization will be reduced by 2 years and 

licensee may lose authority to operate in remaining 

unserved areas and other penalties may apply. 

Provide signal coverage and offer service to at least 75 

percent of the population by the end of the license 

term. If licensee fails to do so, licensee’s authorization 

for unserved geographic portions will terminate 

automatically and licensee may be subject to license 

termination and other penalties.

WU 27.14(h)
Appendix II: Buildout Requirements for 

Spectrum Licenses

Page 50 GAO-14-236 Spectrum Management

Radio service/frequency band Construction/coverage requirements

Radio service 

code 47 C.F.R. Section

700 MHz Upper Band (Block D 

758-763, 788-793 MHz) 

Provide signal coverage and offer service over at least 

75 percent of the nationwide Upper D Block population 

within 4 years from June 13, 2009, 95 percent of the 

population of the nationwide license area within 7

years, and 99.3 percent of the population of the 

nationwide license area within ten years.

WP 27.14(m)

700 MHz Guard Bands Provide substantial service to its licensed area within 

10 years of initial license grant. Submit an annual 

report providing information about the manner in which 

its spectrum is being utilized.

WX 27.13, 27.14(a), 27.607

1.3 GHz (1390-1392 MHz), 

Market Area

Provide substantial service to its licensed area within 

10 years of initial license grant.

BA 27.13, 27.14(a)

1.4 GHz (1392-1395 MHz and 

1432-1434 MHz), Market Area

Provide substantial service to its licensed area within 

10 years of initial license grant.

BB 27.13, 27.14(a)

1.6 GHz (1670-1675 MHz), 

Market Area

Provide substantial service to its licensed area within 

10 years of initial license grant.

BC 27.13, 27.14(a)

Advanced Wireless Service 

(AWS) (1710-1755 MHz and 

2110-2155 MHz)

Provide substantial service to its licensed area within 

the prescribed license term. Authorizations will have a 

term not to exceed 10 years from the initial license 

grant, except that authorizations issued on or before 

December 31, 2009, will have a term of 15 years.

AW 27.13, 27.14

AWS-4 (2000-2020 MHz and 

2180-2200 MHz)

Within 4 years from the date of license, provide reliable 

signal coverage and offer service to at least 40 percent 

of its total AWS-4 population. Within 7 years of the 

date of license, provide reliable signal coverage and 

offer service to at least 70 percent of the population in 

each of its license areas.

AD 27.13, 27.14
Appendix II: Buildout Requirements for 

Spectrum Licenses

Page 51 GAO-14-236 Spectrum Management

Radio service/frequency band Construction/coverage requirements

Radio service 

code 47 C.F.R. Section

2.3 GHz Wireless 

Communications Services 

(WCS) (2305-2320 MHz and 

2345-2360 MHz)

Licensees operating mobile or point-to-multipoint 

systems must provide reliable signal coverage and 

offer service to at least 40 percent of the license area's 

population within 48 months and to at least 75 percent 

of the license area's population within 78 months. If a 

licensee demonstrates that 25 percent or more of the 

license area's population is within a zone requiring 

coordination with an aeronautical mobile telemetry 

facility or with the National Aeronautics and Space 

Administration’s Deep Space Network facility in 

Goldstone, California, the population benchmarks are 

reduced to 25 and 50 percent, respectively. 

Licensees operating point-to-point fixed systems, 

except those deployed in the Gulf of Mexico license 

area, must construct and operate a minimum of 15 

point-to-point links per million persons (one link per 

67,000 persons) in a license area within 48 months, 

and 30 point-to-point links per million persons (one link 

per 33,500 persons) in a licensed area within 78 

months. Licensees operating point-to-point fixed 

systems in the Gulf of Mexico license area must 

demonstrate that they have constructed and are 

operating a minimum of 15 point-to-point links at 48 

months and 78 months.

WS 27.13, 27.14(p)

Broadband Radio Service Provide substantial service to its licensed area by May 

1, 2011.

BR 27.14

Educational Broadband Service Provide substantial service to its licensed area by 

November 1, 2011.

ED 27.14

Source: FCC.
Appendix II: Buildout Requirements for 

Spectrum Licenses

Page 52 GAO-14-236 Spectrum Management

Table 17: Buildout Requirements for Maritime Public Coast Services, as of January 2014

Radio service/frequency band Construction/coverage requirements

Radio service 

code

47 C.F.R. 

Section

Very High Frequency (VHF), Geographic 

Licenses

Provide substantial service to its licensed area within 

5 years of initial license grant and again within 10 

years.

PC 80.49(a)(1)

VHF, Site-Based Licenses Construct and place into operation within 12 months 

from date of grant.

MC 80.49(a)(1)

Low Frequency, Medium Frequency, High 

Frequency Site-Based Licenses

Construct and place into operation within 12 months 

from date of grant.

MC 80.49(a)(2)

Automated Maritime Telecommunications 

System (AMTS), Site-Based

Construct and place into operation within 2 years 

from date of grant.

MC 80.49(a)(3)

AMTS, Geographic Licenses Provide substantial service to its licensed area within 

10 years of initial license grant.

PC 80.49(a)(3)

Public Fixed Applies only to licenses with station class of APC. 

Construct and place into operation within 12 months 

from date of grant.

MK 80.49(b)

Source: FCC.

Table 18: Buildout Requirements for Aviation Services, as of January 2014

Radio service/frequency band Construction/coverage requirements

Radio service 

code

47 C.F.R. 

Section

Aeronautical advisory Unicom and 

Radionavigation Land Stations (excluding 

radionavigation land test stations)

Place into operation within 12 months after initial 

license grant. 

AF, AR 87.45

Source: FCC.
Appendix II: Buildout Requirements for 

Spectrum Licenses

Page 53 GAO-14-236 Spectrum Management

Table 19: Buildout Requirements for Fixed-Microwave Services, as of January 2014

Radio service/frequency band Construction/coverage requirements Radio service code

47 C.F.R. 

Section

Fixed Microwave and Electronic 

Message Services (Site-Based)

Place in operation within 18 months of initial license grant. CE, CF (except 39 

GHz RSA), CT 

(Fixed locations 

only), MG, MW, PE, 

WA, WM, WR

101.63

Multichannel Video and

Distribution and Date Services 

Provide substantial service to its licensed area within 5 

years of initial license grant and 10 years of initial license 

grant.

DV 101.1413

Local Multipoint Distribution 

Service 

Provide substantial service to its licensed area within 10 

years of initial license grant.

LD 101.1011

39 GHz Geographic Licenses Provide substantial service to its licensed area within 10 

years of initial license grant. 

TN (39 GHz RSA) 101.17

24 GHz Geographic Licenses Provide substantial service to its licensed area within 10 

years of initial license grant.

TZ 101.527

Multiple Address Systems 

(Geographic)

Provide service to at least 1/5 of the population in its 

licensed area or substantial service within 5 years of initial 

license grant and make a showing of continued substantial 

service within 10 years of initial license grant.

MS 101.1325(b)

Source: FCC.

Table 20: Buildout Requirements for Broadcast Auxiliary Services, as of January 2014

Radio service/frequency band Construction/coverage requirements

Radio service 

code

47 C.F.R. 

Section

Site-Based Construct and place into operation within 18 months of 

initial license grant.

AB, AI, AS, TB, TI, 

TP, TS, TT

74.34(a)

Site-Based Construct and place into operation within 12 months of 

initial license grant.

RP 74.34(b)

Source: FCC.

Table 21: Buildout Requirements for Personal Radio Service, as of January 2014

Radio service/frequency band Construction/coverage requirements

Radio service 

code

47 C.F.R. 

Section

218-219 MHz (formerly Interactive 

Video and Data Service)

Provide substantial service within 10 years of license grant. 

File a report informing the Commission of the status of its 

system.

ZV 95.833(a)

Source: FCC.
Appendix II: Buildout Requirements for 

Spectrum Licenses

Page 54 GAO-14-236 Spectrum Management

Table 22: Buildout Requirements for Broadcast Services, as of January 2014

Radio service/frequency band Construction/coverage requirements

47 C.F.R. 

Section

New TV, AM, FM, or International 

Broadcast; low power TV; TV translator; 

TV booster; FM translator; or FM 

booster station, or to make changes in 

such existing stations

Three years from the date of issuance of the original construction permit 

within which construction shall be completed and application for license 

filed.

73.3598

Low power FM station Eighteen months from the date of issuance of the construction permit 

within which construction shall be completed and application for license 

filed.

73.3598

Source: FCC.

Table 23: Buildout Requirements for Satellite Services, as of January 2014

Radio service/frequency band Construction/coverage requirements

47 C.F.R. 

Section

Earth stations Twelve months from the date of the license grant. 25.133

Receive only earth stations Six months after coordination has been completed. 25.133

Geostationary orbit satellite systems From the date the license is issued: a

1 year: Enter into a binding non-contingent contract to construct the 

licensed satellite system.

2 years: Complete the critical design review of the licensed satellite 

system.

3 years: Begin the construction of the satellite.

5 years: Launch and operate the satellite.

25.164

25.137(d)

Buildout Requirements for 

Services Licensed by the 

Media Bureau 

b

Buildout Requirements for 

Services Licensed by the 

International Bureau
Appendix II: Buildout Requirements for 

Spectrum Licenses

Page 55 GAO-14-236 Spectrum Management

Radio service/frequency band Construction/coverage requirements

47 C.F.R. 

Section

Non-geostationary orbit satellite 

systems

From the date the license is issued: a

1 year: Enter into a binding non-contingent contract to construct the 

licensed satellite system.

2 years: Complete the critical design review of the licensed satellite 

system.

2 years, 6 months: Begin the construction of the first satellite in the 

licensed satellite system.

3 years, 6 months: Launch and operate the first satellite in the licensed 

satellite system.

6 years: Bring all the satellites in the licensed satellite system into 

operation.

25.164

25.137(d)

Digital Audio Radio Services satellite 

systems

b

From the date the license is issued:

1 year: Complete contracting for construction of first space station or begin 

space station construction.

2 years: If applied for, complete contracting for construction of second 

space station or begin second space station construction.

4 years: In orbit operation of at least one space station.

6 years: Full operation of the satellite system.

25.144

Direct Broadcast Satellite systems From the date the license is issued: 

1 year: Complete contracting for construction of the satellite station(s).

6 years: Satellite stations to be in operation.

25.148(b)

Source: FCC.

a

Not to include Direct Broadcast and Digital Audio Radio Services satellite systems. 

b

Applies to non-U.S.-licensed satellite systems requesting access to the market in the United States.
Appendix III: Outcomes of Buildout 

Requirements for Selected Wireless Services

Page 56 GAO-14-236 Spectrum Management

Tables 24 to 37 provide results from our analysis of FCC’s ULS data for 

licenses for five selected wireless services. Among other things, these 

tables tabulate the number of licenses by auction, buildout requirement 

outcomes (e.g., whether a license met the buildout requirement), and 

extension request outcomes. Appendix I contains information on the 

scope and methodology of this analysis. 

Table 24: Number of Licenses, by Wireless Service

Service

Number of 

licenses

Broadband PCS 4,212

220 MHz 1,231

39 GHz 2,173

Fixed microwave 10,561

Private land mobile radio, below 700 MHz, except 220 MHz 

(private land mobile radio)

10,278

Total 28,455

Source: GAO analysis of ULS data.

Table 25: Number of Market-Based Licenses, by Wireless Service and Auction 

Service Auction number and title Auction dates

Number of 

licenses

Broadband 

PCS

4: Broadband PCS A and B Block 12/05/1994-

03/13/1995

760

5: Broadband PCS C Block 12/18/1995-

05/06/1996

640

10: Broadband PCS C Block 

Reauction 

07/03/1996-

07/16/1996

15

11: Broadband PCS D, E, & F Block 08/26/1996-

01/14/1997

1,885

22: C, D, E, and F Block Broadband 

PCS 

03/23/1999-

04/15/1999

483

35: C and F Block Broadband PCS 12/12/2000-

01/26/2001

171

58: Broadband PCS 01/26/2005-

02/15/2005

224

71: Broadband PCS 05/16/2007-

05/21/2007

34

Service total 4,212

220 MHz 18: 220 MHz 09/15/1998-

10/22/1998

859

Appendix III: Outcomes of Buildout 

Requirements for Selected Wireless 

Services 
Appendix III: Outcomes of Buildout 

Requirements for Selected Wireless Services

Page 57 GAO-14-236 Spectrum Management

Service Auction number and title Auction dates

Number of 

licenses

24: 220 MHz 06/08/1999-

06/30/1999

292

43: Multi-Radio Service 01/10/2002-

01/17/2002

4

72: 220 MHz 06/20/2007-

06/26/2007

76

Service total 1,231

39 GHz 30: 39GHz 04/12/2000-

05/08/2000

2,173

Service total 2,173

Total 7,616

Source: GAO analysis of ULS data and FCC information.

Table 26: Number of Site-Based Licenses, by Wireless Service

Service License grant dates Number of licenses 

Fixed microwave 07/01/2010 to 06/31/2011 10,561

Private land mobile radio 01/01/2011 to 12/31/2011 10,278

Total 20,839

Source: GAO analysis of ULS data and FCC information.

Table 27: Number of Licenses that Did and Did Not Have a Buildout Requirement, by Wireless Service

Service

Buildout 

requirement on or 

before 12/31/12 Percent

No buildout 

requirement Percent

Buildout 

requirement after 

12/31/12 Percent Total

Broadband PCS 3,558 84.5% 650 15.4% 4 0.1% 4,212 

220 MHz 963 78.2 212 17.2 56 4.5 1,231 

39 GHz 1,672 76.9 501 23.1 0 0.0 2,173 

Fixed microwave 10,478 99.2 22 0.2 61 0.6 10,561 

Private land mobile 

radio 

9,546 92.9 608 5.9 124 1.2 10,278 

Total 26,217 92% 1,993 7% 245 1% 28,455

Source: GAO analysis of ULS data.

Notes: Licenses may have a buildout requirement after December 31, 2012, because, among other 

reasons, a licensee was granted a request for an extension to move the buildout deadline.

Percentages may total to more than 100 due to rounding.
Appendix III: Outcomes of Buildout 

Requirements for Selected Wireless Services

Page 58 GAO-14-236 Spectrum Management

Table 28: Buildout Requirement and Extension Request Outcomes for Select Broadband PCS Licenses

Outcome

No request for 

extension

Granted but not 

dismissed 

request for 

extension

Dismissed but not 

granted request 

for extension Total

Percentage of 

licenses with 

requirements

Met requirement On time 2,972 62 41 3,075 86.4%

Late 43 1 2 46 1.3 a

Did not meet 

requirement

Terminated on 

deadline 40 10 7 57 1.6

Not terminated on 

deadline 18 1 3 22 0.6 b

Terminated before 

deadline 11 0 0 11 0.3

Canceled on or 

before deadline 292 1 54 347 9.8

Total for licenses 

with requirements 3,376 75 107 3,558 100%

Other No buildout 

requirement 650 0 0 650

Deadline after 

12/31/12 4 0 0 4

Total for all licenses 4,030 75 107 4,212

Source: GAO analysis of ULS data.

a

Further research on these 46 licenses indicated that there were reasonable explanations for the 

buildout date being more than 15 days after the buildout deadline. For instance, FCC terminated 4 

licenses and later returned them to active status in response to a petition for reconsideration. For 

another 21 licenses, FCC canceled and later reinstated the licenses. FCC “tolled” or suspended the 

buildout period to account for the time the licenses were not active, so the buildout date was more 

than 2 years after the buildout deadline.

b

Of these 22 licenses, 6 licenses were canceled within 60 days after the buildout deadline before the 

automatic termination process was complete. However, the ULS information for the remaining 

licenses did not include information explaining why the licenses were not terminated on the buildout 

deadline. 

Table 29: Number of Extension Requests for Select Broadband PCS Licenses

Number of extension 

requests 

Total number 

of licenses Percentage

0 4,030 95.7%

1 175 4.2

2 7 0.2

Total 4,212 100%

Source: GAO analysis of ULS data.

Note: Percentages may not total to 100 due to rounding.
Appendix III: Outcomes of Buildout 

Requirements for Selected Wireless Services

Page 59 GAO-14-236 Spectrum Management

Table 30: Buildout Requirement and Extension Request Outcomes for Select 220 MHz Phase II Licenses

Outcome

No request 

for extension

Granted but 

not 

dismissed 

request for 

extension

Dismissed but 

not granted 

request for 

extension

Both Granted 

and dismissed 

request for 

extension Total

Percentage of 

licenses with 

requirements

Met requirement

On time 122 43 2 8 175 18.2%

Late 6 0 0 0 6 0.6 a

Did not meet 

requirement

Terminated on 

deadline 139 111 124 155 529 54.9

Not terminated 

on deadline 105 29 0 0 134 13.9 b

Terminated 

before deadline 1 0 0 1 2 0.2

Canceled on or 

before deadline 105 1 0 0 106 11.0

Expired on or 

before deadline 3 1 4 3 11 1.1

Total for licenses 

with requirements 481 185 130 167 963 100%

Other No buildout 

requirement 212 0 0 0 212

Deadline after 

12/31/12 56 0 0 0 56

Total for all 

licenses 749 185 130 167 1,231

Source: GAO analysis of ULS data.

Note: Percentages may not total to 100 due to rounding.

a

Further research on these 6 licenses indicated that FCC had terminated 3 licenses and later returned 

them to active status in response to petitions for reconsideration; the buildout dates entered in ULS 

were the dates of the petitions for reconsideration. For the other 3 licenses, the required notification 

was filed within 30 days of the buildout deadline with a waiver request to accept the late notification, 

in line with FCC policy.

b

Of the 134 licenses that did not meet their buildout requirement and were not terminated, 110 

licenses were canceled within 60 days after the buildout deadline, before the auto termination 

process was complete. Licensees for the remaining 24 licenses have submitted required notifications 

that are pending; FCC has yet to accept or dismiss the notifications. Licensees submitted the required 

notifications for 19 of these licenses before September 1, 2009.
Appendix III: Outcomes of Buildout 

Requirements for Selected Wireless Services

Page 60 GAO-14-236 Spectrum Management

Table 31: Number of Extension Requests for Select 220 MHz Phase II Licenses

Number of extension requests Total number of licenses Percentage

0 749 60.8%

1 315 25.6

2 141 11.5

3 21 1.7

4 5 0.4

Total 1,231 100%

Source: GAO analysis of ULS data.

Table 32: Buildout Requirement and Extension Request Outcomes for Select 39 GHz Licenses

Outcome

No request 

for extension

Granted but 

not 

dismissed 

request for 

extension

Dismissed but 

not granted 

request for 

extension

Both granted 

and 

dismissed 

request for 

extension Total

Percentage of 

licenses with 

requirements

Met requirement

On time 0 837 0 0 837 50.1%

Late 0 2 0 0 2 0.1 a

Did not meet 

requirement

Terminated on 

deadline 0 144 0 345 489 29.2

Not terminated 

on deadline 0 13 0 0 13 0.8 b

Canceled on or 

before deadline 0 308 0 0 308 18.4

Expired on or 

before deadline 0 23 0 0 23 1.4

Total for licenses 

with requirements 0 1,327 0 345 1,672 100%

Other No buildout 

requirement 496 5 0 0 501

Total for all 

licenses 496 1,332 0 345 2,173

Source: GAO analysis of ULS data.

a

Further research on these 2 licenses provided no information on why the late-filed required 

notifications were accepted by FCC. For both licenses, the required notifications were filed 17 days 

after the buildout deadline. 

b

Licensees for all 13 licenses who did not meet their buildout requirement but whose licenses were 

not terminated have submitted a required notification that is pending; FCC has yet to accept or 

dismiss the notifications. Licensees submitted the required notifications for these 13 licenses between 

September 2011 and September 2012.
Appendix III: Outcomes of Buildout 

Requirements for Selected Wireless Services

Page 61 GAO-14-236 Spectrum Management

Table 33: Number of Extension Requests for Select 39 GHz Licenses

Number of extension requests Total number of licenses Percentage

0 496 22.8%

1 1,321 60.8

2 356 16.4

Total 2,173 100%

Source: GAO analysis of ULS data.

Table 34: Buildout Requirement and Extension Request Outcomes for Select Fixed-Microwave Licenses

Outcome

No request for 

extension

Granted but 

not dismissed 

request for 

extension

Dismissed but 

not granted 

request for 

extension Total

Percentage of 

licenses with 

requirements

Met On time 6,195 10 4 6,209 59.3%

Late 90 0 0 90 0.9 a

Both met and did not 

meet

Met for some and did not 

meet for other frequencies 1,215 0 1 1,216 11.6

Did not meet All frequencies terminated 2,172 0 7 2,179 20.8

Some frequencies 

terminated/some without 

requirement 62 0 4 66 0.6

Not terminated on 

deadline 106 0 0 106 1.0 b

Terminated before 

deadline 12 0 0 12 0.1

Canceled on or before 

deadline 600 0 0 600 5.7

Total for licenses 

with requirements 10,452 10 16 10,478 100%

Other No buildout requirement 22 0 0 22

Deadline after 12/31/12 47 14 0 61

Total for all 

licenses 10,521 24 16 10,561

Source: GAO analysis of ULS data.

Note: Includes licenses granted between July 1, 2010, and June 30, 2011.

a

Further research on a sample of 9 of these licenses indicated that FCC approved a petition for 

reconsideration for each of the 9 met-late licenses. 

b

We examined the number of days between the cancellation dates and the buildout deadlines for the 

licenses that did not meet their buildout requirement but were not terminated; since these licenses 

can have more than one buildout deadline, we constructed a proxy buildout deadline 584 days (i.e., 

18 months) from a license grant date. We found that all the licenses had a cancellation date within 60 

days of the proxy buildout deadline, meaning that the licensee canceled the license before the 

automatic termination process was completed.
Appendix III: Outcomes of Buildout 

Requirements for Selected Wireless Services

Page 62 GAO-14-236 Spectrum Management

Table 35: Number of Extension Requests for Select Fixed-Microwave Licenses

Number of requests for a license Total number of licenses Percentage

0 10,521 99.6%

1 39 0.4

2 1 0.0

Total 10,561 100%

Source: GAO analysis of ULS data.

Table 36: Buildout Requirement and Extension Request Outcomes for Select Industrial/Business Private Land-Mobile-Radio 

Licenses

Outcome

No request 

for extension

Granted but 

not dismissed 

request for 

extension

Dismissed 

but not 

granted 

request for 

extension

Both granted and 

dismissed 

request for 

extension Total

Percentage of 

all licenses with 

requirements

Met On time 8,862 17 1 1 8,881 93.0%

Late 261 0 0 0 261 2.7 a

Both met and did 

not meet

Met for some 

and did not meet 

for other 

frequencies 13 0 0 0 13 0.1

Did not meet All frequencies 

terminated 324 0 2 0 326 3.4

Some 

frequencies 

terminated/some 

without 

requirement 17 0 0 0 17 0.2

Not terminated 

on deadline 9 0 0 0 9 0.1 b

Terminated 

before deadline 12 0 0 0 12 0.1

Canceled on or 

before deadline 27 0 0 0 27 0.3

Total for 

licenses with 

requirements 9,525 17 3 1 9,546 100%

Other No buildout 

requirement 608 0 0 0 608

Deadline after 

12/31/12 37 85 0 2 124

Total for all 

licenses 10,170 102 3 3 10,278
Appendix III: Outcomes of Buildout 

Requirements for Selected Wireless Services

Page 63 GAO-14-236 Spectrum Management

Source: GAO analysis of ULS data.

Note: Includes licenses granted between January 1, 2011, and December 31, 2011.

a

Further research on a sample of 27 licenses that met their buildout requirements late indicated that 

FCC approved a petition for reconsideration or a waiver to file late for 25 licenses. The online ULS 

records for the remaining 2 licenses did not contain information explaining why the buildout date was 

more than 15 days after the buildout deadline; the required notifications for these 2 licenses were 17 

and 26 days late.

b

We conducted further research on the 9 licenses that did not meet their buildout requirement but 

were not terminated, including examining the number of days between the cancellation dates and the 

buildout deadlines. Since these licenses can have more than one buildout deadline, we constructed 

a proxy buildout deadline 365 days from each license grant date. Six of the licenses were canceled 

after their buildout deadlines, all within 60 days of the proxy buildout deadline, meaning that the 

licensee canceled the license before the automatic termination process was complete. The other 3 

licenses were active as of September 1, 2013, but all 3 were in termination-pending mode. 

Table 37: Number of Extension Requests for Select Industrial/Business Private 

Land-Mobile-Radio Licenses

Number of extension requests Total number of licenses Percentage

0 10,170 98.9%

1 62 0.6

2 44 0.4

3 2 0.0

Total 10,278 100%

Source: GAO analysis of ULS data.

Note: Percentages may not total to 100 due to rounding.
Appendix IV: GAO Contact and Staff 

Acknowledgments

Page 64 GAO-14-236 Spectrum Management

Mark L. Goldstein, (202) 512-2834 or goldsteinm@gao.gov.

In addition to the contact person named above, Michael Clements, 

Assistant Director; Richard Brown; Stephen Brown; Andy Clinton; Leia 

Dickerson; Mya Dinh; Bert Japikse; Joanie Lofgren; Joshua Ormond; Amy 

Rosewarne; Hai Tran; and Elizabeth Wood made key contributions to this 

report.

Appendix IV: GAO Contact and Staff 

Acknowledgments

GAO Contact

Staff 

Acknowledgments

(543320)
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