FCC Record, Volume 27, No. 5, Pages 3728 to 4696, April 9-April 27, 2012

at least one-fifth of the population within its service area or demonstrate "substantial service" by October
13, 2010 (five years after its licenses were granted).6 On September 23, 2010, CloudNine filed
applications and requests for waiver to extend its buildout deadline until October 13, 2015, for each of its
843 MAS licenses. No party opposed these requests.
II. DISCUSSION
4. The Commission imposed two buildout requirements on geographic area MAS
licensees." First, within five years receiving their license, licensees are required to provide coverage to at
least one-fifth of the population in their service areas or demonstrate "substantial service."9 Second, at
the end of the ten-year license period, licensees are required to make a continued showing of substantial
service in each licensed area.10 The Commission concluded that these buildout requirements would
"hinder warehousing, promote the rapid development of new technologies, and promote service to rural
areas.""
A. Extension Request
5. Section 1.946 of the Commission's rules provides that a request for extension of time to
construct "may be granted if the licensee shows that failure to meet the construction deadline is due to
involuntary loss of site or other causes beyond its control."'2 The rule prohibits granting extensions based
on a failure to obtain financing, failure to obtain an antenna site, failure to order equipment, or because of
a transfer of control of the licensee.'3
6. CloudNine argues that it is unable to meet the five-year buildout deadline because of the
lack of affordable equipment suitable for MAS systems, the lack of a developed marketplace for MAS
services in markets where CloudNine holds licenses, and the lack of access to capital because of the
global financial crisis.'4 Further, CloudNine argues that granting its request would make the MAS
construction requirements consistent with the ten-year construction requirements for other similarly
licensed wireless services.'5
7. We conclude that CloudNine has not shown that it was unable to meet its construction
deadline because of causes beyond its control. First, we reject CloudNine's allegation that there is a lack
of equipment suitable for MAS systems.'6 As mentioned above, the Commission has held two spectrum
auctions for MAS licenses. In addition to the two MAS licensees noted by CloudNine who received
6 See 47 C.F.R. 101.1325(b).
7 Petition for Waiver and Limited Extension of Deadline for Establishing Compliance with Section 101.1325 MAS
Substantial Service Requirement, Exhibit 1 (Waiver Request).
" MAS Report and Order, 15 FCC Red at 11994 94, citing 47 U.S.C. 309(jX3).
9 The Commission has defined "substantial service" as "service that is sound, favorable, and substantially above a
level of mediocre service that just might minimally warrant renewal." Id.; see also, 47 C.F.R. 101.1325(b).
1o MAS Report and Order, 15 FCC Red at 11994 94; see also, 47 C.F.R. 101.1325(b).
' MAS Report and Order, 15 FCC Rcd at 11994 94.
12 47 C.F.R. 1.946(e)(1).
13 47 C.F.R. 1.946(e)(2), (3).
* Waiver Request at I.
Is Waiver Request at 3-4.
'" Waiver Request at 4.

3772

DA 12-557

Federal Communications Commission

United States. Federal Communications Commission. FCC Record, Volume 27, No. 5, Pages 3728 to 4696, April 9-April 27, 2012. Washington D.C.. UNT Digital Library. http://digital.library.unt.edu/ark:/67531/metadc102307/. Accessed September 22, 2014.