[Code of Federal Regulations]

[Title 47, Volume 2]

[Revised as of October 1, 2004]

From the U.S. Government Printing Office via GPO Access

[CITE: 47CFR21.39]



[Page 46-47]

 

                       TITLE 47--TELECOMMUNICATION

 

                    CHAPTER I--FEDERAL COMMUNICATIONS

                         COMMISSION (CONTINUED)

 

PART 21_DOMESTIC PUBLIC FIXED RADIO SERVICES--Table of Contents

 

                   Subpart B_Applications and Licenses

 

Sec. 21.39  Considerations involving transfer or assignment applications.



    (a) A Multipoint Distribution Service conditional license may not be 

assigned or transferred prior to the completion of construction of the 

facility and the timely filing of the certification of completion of 

construction. However, consent to the assignment or transfer of control 

of a Multipoint Distribution Service conditional license may be given 

prior to the completion of construction and the timely filing of the 

certification of completion of construction where:

    (1) The assignment or transfer does not involve a substantial change 

in ownership or control of the authorized Multipoint Distribution 

Service facilities; or

    (2) The assignment or transfer of control is involuntary due to the 

licensee's bankruptcy, death, or legal disability.

    (b) The Commission will review a proposed transaction to determine 

if the circumstances indicate ``trafficking'' in licenses whenever 

applications (except those involving pro forma assignment or transfer of 

control) for consent to assignment of a license, or for transfer of 

control of a licensee, involve facilities that were:

    (1) Authorized following a comparative hearing and have been 

operated less than one year, or;

    (2) Involve facilities that have not been constructed, or;

    (3) Involve facilities that were authorized following a random 

selection proceeding in which the successful applicant received 

preference and that



[[Page 47]]



have been operated for less than one year.



At its discretion, the Commission may require the submission of an 

affirmative, factual showing (supported by affidavits of a person or 

persons with personal knowledge thereof) to demonstrate that the 

proposed assignor or transferor has not acquired an authorization or 

operated a station for the principal purpose of profitable sale rather 

than public service. This showing may include, for example, a 

demonstration that the proposed assignment or transfer is due to changed 

circumstances (described in detail) affecting the licensee subsequent to 

the acquisition of the license, or that the proposed transfer of radio 

facilities is incidental to a sale of other facilities or merger of 

interests.

    (c) If a proposed transfer of radio facilities is incidental to a 

sale of other facilities or merger of interests, any showing requested 

under paragraph (a) of this section shall include an additional exhibit 

which:

    (1) Discloses complete details as to the sale of facilities or 

merger of interests;

    (2) Segregates clearly by an itemized accounting, the amount of 

consideration involved in the sale of facilities or merger of interests; 

and

    (3) Demonstrates that the amount of consideration assignable to the 

facilities or business interests involved represents their fair market 

value at the time of the transaction.

    (d) For the purposes of this section, the one year period is 

calculated using the following dates (as appropriate):

    (1) The initial date of grant of the license, excluding subsequent 

modifications;

    (2) The date of consummation of an assignment or transfer, if the 

station is acquired as the result of an assignment of license, or 

transfer of control of corporate licensee; or

    (3) The median date of the applicable commencement dates (determined 

pursuant to paragraphs (c) (1) and (2) of this section) if the 

transaction involves two or more stations. (The median date is that date 

so selected such that fifty percent of the commencement dates of the 

total number of stations, when arranged in chronological order, lie 

below it and fifty percent lie above it. When the number of stations is 

an even number, the median date will be a value half way between the two 

dates closest to the theoretical median).



[44 FR 60534, Oct. 19, 1979, as amended at 48 FR 33900, July 26, 1983; 

50 FR 5994, Feb. 13, 1985; 52 FR 27554, July 22, 1987. Redesignated and 

amended at 52 FR 37780, Oct. 9, 1987; 58 FR 11798, Mar. 1, 1993; 61 FR 

26674, May 28, 1996]