Sprint - Nextel 2007 Annual Report Download - page 12

• impose fines and forfeitures for violations of FCC rules;
• regulate the technical standards governing wireless services; and
• impose other obligations that it determines to be in the public interest.
We hold several kinds of licenses to deploy our services: 1.9 GHz PCS licenses utilized in our CDMA
network, and 800 MHz and 900 MHz licenses utilized in our iDEN network. We also hold 2.1 GHz BRS
licenses, 2.5 GHz BRS licenses, and we lease use of 2.5 GHz BRS and EBS licenses held by others, for our first
generation fixed wireless Internet access service and eventual use in our WiMAX next generation broadband
wireless network. We also hold and lease 2.5 GHz, 1.9 GHz and other FCC licenses that we currently do not
utilize in our networks or operations, but which we intend to use in the future consistent with customer demand
and our obligations as a licensee.
1.9 GHz PCS License Conditions
All PCS licenses are granted for ten-year terms. For purposes of issuing PCS licenses, the FCC utilizes
major trading areas, or MTAs, and basic trading areas, or BTAs, with several BTAs making up each MTA. Each
license is subject to buildout requirements, and the FCC may revoke a license after a hearing if the buildout or
other applicable requirements have not been met. We have met these requirements in all of our MTA and BTA
markets.
If applicable buildout conditions are met, these licenses may be renewed for additional ten-year terms.
Renewal applications are not subject to auctions. If a renewal application is challenged, the FCC grants a
preference commonly referred to as a license renewal expectancy to the applicant if the applicant can
demonstrate that it has provided “substantial service” during the past license term and has substantially complied
with applicable FCC rules and policies and the Communications Act. The licenses for the 10 MHz of spectrum in
the 1.9 GHz band that we received as part of the FCC’s Report and Order, described below, have ten-year terms
and are not subject to specific buildout conditions, but are subject to renewal requirements that are similar to
those for our PCS licenses.
800 MHz and 900 MHz License Conditions
We hold licenses for channels in the 800 MHz and 900 MHz bands that are used to deploy our iDEN
services. Because spectrum in these bands originally was licensed in small groups of channels, we hold
thousands of these licenses, which together allow us to provide coverage across much of the continental United
States. Our 800 MHz and 900 MHz licenses are subject to requirements that we meet population coverage
benchmarks tied to the initial license grant dates. To date, we have met all of these construction requirements
applicable to these licenses, except in the case of licenses that are not material to our business. Our 800 MHz and
900 MHz licenses have ten-year terms, at the end of which each license is subject to renewal requirements that
are similar to those for our 1.9 GHz licenses.
BRS-EBS License Conditions
We hold and lease FCC BRS and EBS licenses. We currently use a portion of this spectrum to provide fixed
wireless Internet access services to homes and small businesses using “first generation” line-of-sight technology.
This service operates across the country in 14 markets with approximately 14,000 subscribers. We operate our
network and a third party provides customer care.
In 2004, the FCC ordered that the 2496-2690 MHz band, or the 2.5 GHz band, which is the spectrum for our
EBS and BRS licenses, be reconfigured into upper and lower-band segments for low-power operations, and a
mid-band segment for high-power operations. Transition to the new band plan has begun. We and other parties
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