Federal Communications Commission DA 12-1798 
Before the
Federal Communications Commission
Washington, D.C. 20554
In re Matter of 
ADVANTAGE CELLULAR SYSTEMS, INC
Requests for Extension of Time, or in the 
alternative, Limited Waiver of Substantial Service 
Requirements for Four Local Multipoint 
Distribution Service Licenses
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File Nos. 0005238986, 0005239072, 
0005239099, 0005239219
MEMORANDUM OPINION AND ORDER
Adopted:  November 7, 2012   Released:  November 8, 2012
By the Deputy Chief, Broadband Division, Wireless Telecommunications Bureau:
I. INTRODUCTION  
1. In this Memorandum Opinion and Order, we deny Advantage Cellular Systems, Inc.’s 
(“ACSI”) requests for extension of time to demonstrate compliance with the substantial service 
requirements for its four Local Multipoint Distribution Service (“LMDS”) licenses, as well as its 
associated requests for waiver of the June 1, 2012 substantial service deadline.  Given our denial of these 
requests, these licenses automatically terminated, by operation of Commission rule, as of June 1, 2012.  
II. BACKGROUND
2. In 1997, the Commission allocated 1,300 megahertz of LMDS spectrum in each basic 
trading area (“BTA”) across the United States.1 Specifically, the Commission allocated two LMDS 
licenses per BTA – an “A Block” and a “B Block” in each.2 The A Block license is comprised of 1,150 
megahertz of total bandwidth, and the B Block license is comprised of 150 megahertz of total bandwidth.3  
  
1 See Rulemaking to Amend Parts 1, 2, 21, and 25 of the Commission’s Rules to Redesignate the 27.5 GHz 
Frequency Band, to Reallocate the 29.5-30.0 GHz Frequency Band, to Establish Rules and Policies For Local 
Multipoint Distribution Service and For Fixed Satellite Services, CC Docket No. 92-297, Second Report and Order, 
Order on Reconsideration and Fifth Notice of Proposed Rulemaking, 12 FCC Rcd 12545, 12605 ¶ 136 (1997) 
(”Second LMDS Report and Order”); see also Rand McNally Commercial Atlas & Marketing Guide 36-39 (123rd 
ed. 1992).  Rand McNally is the copyright owner of the Major Trading Area (MTA) and BTA Listings, which list 
the BTAs contained in each MTA and the counties within each BTA, as embodied in Rand McNally’s Trading Area 
System MTA/BTA Diskette, and geographically represented in the map contained in Rand McNally’s Commercial 
Atlas & Marketing Guide.  The conditional use of Rand McNally copyrighted material by interested persons is 
authorized under a blanket license agreement dated February 10, 1994 and covers use by LMDS applicants.  This 
agreement requires authorized users of the material to include a legend on reproductions (as specified in the license 
agreement) indicating Rand McNally ownership.  The Commission has allocated the LMDS for operations in a total 
of 493 BTAs throughout the nation.
2 See Second LMDS Report and Order, 12 FCC Rcd at 12556 ¶ 12.
3 See id.
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The A Block consists of the sub bands 27.50-28.35 GHz (the A1 Band); 29.10-29.25 GHz (the A2 Band); 
and 31.075-31.225 GHz (the A3 Band).4 The B Block consists of the sub bands 31.00-31.075 (the B1 
Band) and 31.225-31.30 GHz (the B2 Band).5 The same entity may hold the licenses for both the A and 
B Blocks of spectrum in an individual BTA, but each license is auctioned and licensed separately.  
3. LMDS licensees are regulated under Part 101 of the Commission’s rules, which generally 
governs terrestrial microwave operations, and may provide any service consistent with the Commission’s 
rules and the licensee’s regulatory status,6 subject to a ten-year term from the initial license grant date.7  
At the end of the ten-year period, licensees are required to submit an acceptable showing to the 
Commission demonstrating that they are providing “substantial service” in each licensed area.8 Failure 
by any licensee to meet this requirement will result in forfeiture of the license and the licensee will be 
ineligible to regain it.9  
4. The final LMDS band allocation was adopted by the Commission on March 20, 1997.10  
Since allocating the LMDS spectrum, the Commission has thus far held two LMDS auctions: Auction 17 
and Auction 23.11 Auction No. 17, the first LMDS auction, began on February 18, 1998, and closed on 
March 25, 1998.12 The licenses in question here were originally issued to ACSI on June 24, 1998 as a 
result of Auction No. 17.13  
5. ACSI was originally required to demonstrate substantial service by June 24, 2008, or 10 
years after the initial license grant date.14 On June 22, 2007, ACSI filed applications for an extension of 
time to demonstrate substantial service for its LMDS licenses.15 On April 11, 2008, the Wireless 
Telecommunications Bureau (the “Bureau”) granted the requests for extension of the construction 
  
4 See 47 C.F.R. § 101.1005.
5 See id.
6 See 47 C.F.R. § 101.1013(b).  
7 See Second LMDS Report and Order, 12 FCC Rcd at 12657 ¶ 259.  Pursuant to 47 C.F.R. § 101.67, LMDS 
licenses are issued for a period not to exceed ten years, subject to renewal upon demonstration of substantial service.         
8 See 47 C.F.R. § 101.1011(a); see also Second LMDS Report and Order, 12 FCC Rcd at 12658 ¶¶ 261-262.  
9 See 47 C.F.R. § 101.1011(a).
10 See Second LMDS Report and Order, 12 FCC Rcd at 12556 ¶ 13; see also Rulemaking to Amend Parts 1, 2, 21, 
and 25 of the Commission’s Rules to Redesignate the 27.5 GHz Frequency Band, to Reallocate the 29.5-30.0 GHz 
Frequency Band, to Establish Rules and Policies For Local Multipoint Distribution Service and For Fixed Satellite 
Services, CC Docket No. 92-297, First Report and Order and Fourth Notice of Proposed Rulemaking, 11 FCC Rcd 
19005, 19025 ¶ 45 (1996) (allocating the initial 1 gigahertz of spectrum for LMDS and seeking comment on the 
allocation of an additional 300 megahertz of spectrum at 31.0-31.3 GHz).
11 See, e.g., LMDS Auction Closes, Public Notice, 13 FCC Rcd 18217 (1998) (Auction 17 Closing PN); Local 
Multipoint Distribution Service Auction Closes, Public Notice, 14 FCC Rcd 8543 (1999) (Auction 23 Closing PN).        
12 See FCC Announces Spectrum Auction Schedule for 1998, Public Notice, 12 FCC Rcd 19726 (1997); Auction 17 
Closing PN, 13 FCC Rcd at 18217.        
13 See File No. 0000000076 (granted June 24, 1998); see also FCC Announces the Conditional Grant of 25 Local 
Multipoint Distribution Service Licenses, Public Notice, 13 FCC Rcd 17186 (WTB 1998).  The licenses in question 
are Stations WPOH497 (Dalton, GA), WPOH498 (Clarksville, TN-Hopkinsville, KY), WPOH499 (Cookeville, 
TN), and WPOH500 (Cookeville, TN).
14 See Second LMDS Report and Order, 12 FCC Rcd at 12657 ¶ 259.
15 File Nos. 0003083152-0003083155 (filed June 22, 2007).
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deadlines filed by a large group of LMDS licensees – including ACSI – to extend their deadlines to meet 
the substantial service requirements to June 1, 2012, resulting in a nearly four-year construction extension 
for each of these licensees.16  
6. The Bureau found that these LMDS licensees faced factors beyond their control, 
including difficulties in obtaining viable and affordable equipment, that warranted an extension.17 In 
making this finding, the Bureau noted that the licensees seeking relief from the construction deadlines 
represented a majority of LMDS licensees for whom buildout requirements were approaching, and that 
they all faced these same basic obstacles to timely construction.18 Thus, these obstacles were not a 
product of an individual licensee’s short-sightedness or its unfortunate business decisions; rather, the 
difficulties in procuring the basic equipment necessary for LMDS operations were widespread, stemming 
from the state of the market.  Based on the record evidence, the Bureau anticipated that various 
developments in the market – arising in large part from the rollout of new services that could provide 
opportunities for LMDS operations – would help rectify these difficulties.  Thus, the Bureau found that 
ACSI and others could potentially use their LMDS licenses to provide wireless backhaul services to 
licensees in the 700 MHz band, the Advanced Wireless Services-1 (“AWS-1”) band, and other bands 
suitable for mobile broadband service, all of which at that time had recently been auctioned, licensed, or 
put into use.19 The Bureau anticipated that these bands would develop robustly, along with other mobile 
and fixed wireless services, and that resulting opportunities for associated LMDS service (such as 
wireless backhaul) would help spur production of equipment designed for LMDS use and thus facilitate 
timely construction by ACSI and the other LMDS licensees, under the extended buildout deadline set by 
the Bureau.20
7. On May 30, 2012, ACSI filed applications pursuant to Section 1.946(e) of the 
Commission’s Rules seeking a further seven-month extension of time until December 31, 2012, to 
construct its four LMDS licenses.21 Invoking the Commission’s general waiver authority under Section 
1.925 of the Commission’s Rules, ACSI alternatively seeks a waiver of Section 101.1011(a) of the 
Commission’s Rules, as a means of extending the construction deadline applicable to the licenses until 
December 31, 2012.22 ACSI asserts that it “has made numerous efforts since the purchase of these 
particular licenses to find suitable uses within the markets where the licenses are maintained.”23 In 
particular, ACSI asserts that there is a pending “significant potential use of the license in Clarksville, 
Tennessee (WPOH 498)” and is awaiting confirmation and further discussion with RJ Corman railroad of 
a business relationship for use of that license.24 With regard to the other three licenses at issue, ACSI 
admits that “[w]hile there have been good discussions and analyzation of the market for the utilization of 
these licenses, there has been no final plans and purpose for the respective licenses established.”25 This 
  
16 Applications filed by Licensees in the Local Multipoint Distribution Service (LMDS) Seeking Waivers of Section 
101.1011 of the Commission’s Rules and Extensions of Time to Construct and Demonstrate Substantial Service, 
Memorandum Opinion and Order, 23 FCC Rcd 5894 (WTB 2008) (LMDS Order).
17 LMDS Order, 23 FCC Rcd at 5905 ¶ 24.
18 Id.
19 Id. at 5905 ¶ 25.
20 Id.
21 Extension and Waiver Request at 1.
22 Id.
23 Id.
24 Id.
25 Id.
Federal Communications Commission DA 12-1798 
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lack of progress notwithstanding, ACSI states that a brief extension to “more fully explore and hopefully 
finalize the construction buildout for these licenses” would be in the public interest.26 ACSI suggests that 
if no market is available for these licenses, the licenses would terminate as of December 31, 2012.27
III. DISCUSSION
8. We find that ACSI has not justified a grant of an extension of time, or a waiver of the 
construction deadline, for its LMDS licenses.  And without such extension or waiver, ACSI’s LMDS 
licenses automatically terminated, by operation of Sections 1.946(c) and 1.955(a)(2) of the Commission’s 
Rules, as of June 1, 2012.28 We discuss these findings in detail below.
A. Extension Requests
9. ACSI requests a further seven-month extension of time, until December 31, 2012, to 
demonstrate substantial service.29 As noted above, this is the second extension that ACSI has requested 
for constructing these licenses.  To be eligible for an extension of time to construct, ACSI must show that 
its “failure to meet the construction deadline is due to involuntary loss of site or other causes beyond its 
control.”30 We conclude that ACSI has not met this threshold.  
10. We find that ACSI has made certain business decisions relating to the use of the licenses 
and that the failure to timely construct the licenses is not the result of circumstances beyond its control.  
ACSI has not constructed any facilities for its licenses and has chosen to pursue a possible business 
relationship for use of the spectrum prior to construction.  The Commission has consistently found that a 
licensee’s own business decisions are not circumstances beyond the licensee’s control and are therefore 
not an appropriate basis for regulatory relief.31
11. We find that ACSI’s present pursuit of a single speculative business venture for one 
license does not justify granting an extension, and its decision to put its LMDS spectrum on the shelf until 
  
26 Id.
27 Id.
28 47 C.F.R. §§ 1.946(c) (providing that if a licensee in the Wireless Radio Services fails to commence service or 
operations by the expiration of its construction period or to meet its coverage or substantial service obligations by 
the expiration of its coverage period, its authorization terminates automatically, without specific Commission action, 
on the date the construction or coverage period expires) and 1.955(a)(2) (cross-referencing Section 1.946(c) and 
reiterating that authorizations in the Wireless Radio Services automatically terminate without specific Commission 
action, if the licensee fails to meet applicable construction or coverage requirements).
29 Extension and Waiver Request at 1.
30 47 C.F.R. § 1.946(e)(1).
31 See, e.g., Redwood Wireless Minnesota, LLC, Order, 17 FCC Rcd 22416 (WTB CWD 2002) (construction delays 
resulting from business disputes were exercises of business judgment and were not outside Petitioner’s control); 
Eldorado Communications LLC, Order, 17 FCC Rcd 24613 (WTB CWD 2002) (licensee’s determination to initially 
deploy TDMA system and subsequently to adopt GSM with months remaining before construction deadline was 
business decision within its control); Bristol MAS Partners, Order, 14 FCC Rcd 5007 (WTB PSPWD 1999) 
(equipment installation or delivery not delayed for some unique reason and licensee failing to obtain equipment was 
business decision); AAT Electronics Corporation, 93 FCC 2d 1034 (1983) (decision not to market service 
aggressively because of equipment uncertainties was within licensee’s control); Business Radio Communications 
Systems, Inc., 102 FCC 2d 714 (1985) (construction delay caused by zoning challenge not a circumstance beyond 
licensee’s control); Texas Two-Way, Inc., 98 FCC 2d 1300 (1984), aff'd sub nom., Texas Two-Way, Inc. v. FCC, 
762 F.2d 138 (D.C. Cir. 1985) (licensee is responsible for delay resulting from interference caused by construction 
adjacent to construction site because site selection was an independent business decision).
Federal Communications Commission DA 12-1798 
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it works out a deal for services constituted a business decision voluntarily made by ACSI, not an 
inevitable result of circumstances beyond its control.  Indeed, even now, ACSI has only committed to 
develop one of its four LMDS licenses only if the business relationship with RJ Corman develops, and 
apparently agrees to the forfeiture of such license if the pending arrangement does not come to fruition.32  
With regard to the other licenses, ACSI does not even appear to be pursuing any concrete business 
relationship and just wants time to more fully explore buildout options, notwithstanding the fact that it has 
had fourteen years to explore options.  We note that while there were legitimate challenges to establishing 
LMDS service when ACSI received its first construction extension, the market for wireless backhaul has 
been developing steadily in the band and other licensees have been able to establish wireless backhaul 
service in the band.  In 2005, 8.7 percent of backhaul traffic was sent by fixed wireless.33 By 2009, that 
figure increased to 12.3 percent.34 Indeed, many LMDS licensees did meet the June 1, 2012 deadline and 
built facilities.35 Under those circumstances, we conclude that ACSI made a voluntary decision not to 
actively pursue development of LMDS facilities.
12. As noted above, when the Bureau granted an extension to LMDS licensees in 2008, it 
anticipated that licensees could potentially provide wireless backhaul services to licensees in bands that 
had recently been auctioned, licensed, or put into use.36 In the years since the Bureau originally extended 
the construction deadline for these licenses, there has been considerable deployment of wireless 
broadband service in the 700 MHz, AWS-1, and BRS/EBS bands.   Thus, the validity of one of the factors 
supporting the Bureau’s earlier extension of the construction deadline – that with some additional time, 
productive opportunities for using LMDS licenses would develop as these emerging wireless broadband 
services create a need for supporting backhaul service – has been substantially confirmed.  
Notwithstanding that progress, ACSI made no meaningful attempt to develop its LMDS spectrum.  We 
therefore conclude that the decision to grant an extension to LMDS licensees in 2008 does not support 
ACSI’s request for yet more time.
B. Waiver Request
13. To be granted a waiver of the June 1, 2012 construction deadline, ACSI must show that 
either (1) the underlying purpose of the rule(s) would not be served or would be frustrated by application 
to the instant case, and that a grant of the requested waiver would be in the public interest; or (2) in view 
of the unique or unusual circumstances of the instant case, application of the rule(s) would be inequitable, 
unduly burdensome or contrary to the public interest, or the applicant has no reasonable alternative.37 As 
is discussed more fully below, we conclude that ACSI has failed to make the requisite showing, and we 
therefore deny its waiver request. 
  
32 Extension and Waiver Request at 1.
33 See Implementation of Section 6002(b) of the Omnibus Budget Reconciliation Act of 1993 Annual Report and 
Analysis of Competitive Market Conditions With Respect to Mobile Wireless, Including Commercial Mobile 
Services, WT Docket No. 10-133, Fifteenth Report, 26 FCC Rcd 9664, 9845 ¶ 320 (2011).  
34 Id.  In a separate proceeding, Clearwire Corporation has indicated that it uses wireless for over 90 percent of its 
backhaul needs, including almost 13,000 licenses with over 48,000 paths.  See Comments of Clearwire Corporation, 
WT Docket No. 12-156 (filed July 19, 2012) at 2.
35 As of October 3, 2012, the Broadband Division had accepted 67 LMDS buildout notifications from at least 18 
different licensees.  Another 221 showings were pending and undergoing review.
36 LMDS Order, 23 FCC Rcd at 5905 ¶ 25.
37 See 47 C.F.R. § 1.925(b)(3); see also 47 C.F.R. § 1.3; Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 
1166 (D.C. Cir. 1990); WAIT Radio v. FCC, 418 F.2d 1153 (D.C. Cir. 1969), aff'd, 459 F.2d 1203 (1972), cert. 
denied, 409 U.S. 1027 (1972).  
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14. First, we conclude that an extension would be inconsistent with the underlying purpose of 
the substantial service standard, which, as the Commission has said, is to provide “a clear and expeditious 
accounting of spectrum use by licensees to ensure that service is being provided to the public.”38 ACSI is 
still exploring buildout options and has no concrete plans to construct.  In contrast, many other licensees 
built their facilities.  Granting ACSI a further extension despite its lack of effort or commitment to 
developing its LMDS spectrum would be inconsistent with the underlying purpose of the substantial 
service requirement.  
15. We also conclude that ACSI has not shown requiring compliance with the substantial 
service rules is inequitable, unduly burdensome, and contrary to the public interest.  As we have 
previously discussed, ACSI’s decision not to construct its LMDS licenses was a business decision.  Other 
licensees made other business decisions that led them to build out their licenses.39  
16. We conclude that grant of ACSI’s request for an extension of time to construct would 
ultimately serve to defeat the fundamental public interest of ensuring licensee compliance with public 
interest obligations, including the duty to follow rules designed to bring service to the public as 
expeditiously as possible.40 ACSI has had these licenses for fourteen years and has done nothing with 
them.  Yet, the licenses in question could play an important role in providing wireless backhaul to support 
4G services and should not lay fallow.  The Bureau will expeditiously take action to relicense the 
spectrum in an appropriate fashion so that another operator could promptly place the spectrum in use.
17. Authorizations for LMDS licenses automatically terminate if the licensee fails to meet 
construction or coverage requirements.41 In light of our decision to deny ACSI’s request for an extension 
or waiver of the construction requirements on the ground that grant of such request is not in the public 
interest, ACSI’s licenses automatically terminated, by operation of Sections 1.946(c) and 1.955(a)(2) of 
the Commission’s Rules,42 as of June 1, 2012.
IV. CONCLUSION AND ORDERING CLAUSES
18. ACSI has failed to justify an extension of time to meet the substantial service deadline for 
its LMDS stations or to justify a waiver of the June 1, 2012 deadline for establishing substantial service.  
  
38 See Amendment of Part 101 of the Commission’s Rules to Facilitate the Use of Microwave for Wireless Backhaul 
and Other Uses and to Provide Additional Flexibility to Broadcast Auxiliary Service and Operational Fixed 
Microwave Licensees, WT Docket No. 10-153, Second Report and Order, Second Further Notice of Proposed 
Rulemaking, Second Notice of Inquiry, Order on Reconsideration, and Memorandum Opinion and Order, 27 FCC 
Rcd 9735, 9773-9774 ¶ 104 (2012) (“Wireless Backhaul 2nd R&O”), citing 39 GHz R&O, 12 FCC Rcd at 18623 ¶ 
42; see also 39 GHz R&O, 12 FCC Rcd at 18625 ¶ 46 (“This approach will permit flexibility in system design and 
market development, while ensuring that service is being provided to the public.”); 39 GHz R&O, 12 FCC Rcd at 
18626 ¶ 46 (“This revised performance standard should ensure that meaningful service will be provided without 
unduly restricting service offerings.”); 39 GHz R&O, 12 FCC Rcd at 18625 ¶ 47 (“[A]pplying a similar performance 
requirement to all licensees at the license renewal point will help establish a level playing field without 
compromising the goals of ensuring efficient spectrum use and expeditious provision of service to the public.”); 39 
GHz Renewal Order, 17 FCC Rcd at 4407 ¶ 11 (“The Commission’s overarching purpose behind adopting the 
substantial service standard for renewal was to ensure that the spectrum was being used to provide service to the 
public.”).  
39 See note 35, supra.
40 See Wireless Backhaul 2nd R&O, 27 FCC Rcd at 9773-9774 ¶ 104.
41 47 C.F.R. §§ 1.946(c) and 1.955(a)(2).
42 Id.
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We therefore deny the Extension and Waiver Request.  Accordingly, ACSI’s licenses to operate LMDS 
stations automatically terminated, by operation of Commission rule, as of June 1, 2012.
19. Accordingly, IT IS ORDERED, pursuant to Sections 4(i) and 309 of the Communications 
Act of 1934, as amended, 47 U.S.C. §§ 154(i), 309, and Sections 1.925 and 1.946 of the Commission’s 
Rules, 47 C.F.R. §§ 1.925, 1.946, that the request for waivers and the applications for extension of time to 
demonstrate substantial service (File Nos. 0005238986, 0005239072, 0005239099 and 0005239219) filed 
by Advantage Cellular Systems, Inc. on May 30, 2012 ARE DENIED.
20. IT IS FURTHER ORDERED that, pursuant to Sections 4(i) and 303(r) of the 
Communications Act, as amended, 47 U.S.C. §§ 154(i), 303(r), and Section 1.955(a)(2) of the 
Commission’s Rules, 47 C.F.R. § 1.955(a)(2), that the Universal Licensing System SHALL BE 
UPDATED to reflect that the licenses issued to Advantage Cellular Systems, Inc. for Local Multipoint 
Distribution Service Stations WP0H497, WPOH498, WPOH499, and WPOH500 TERMINATED as of 
June 1, 2012.
21. These actions are taken under delegated authority pursuant to Sections 0.131 and 0.331 of 
the Commission’s Rules, 47 C.F.R. §§ 0.131, 0.331.
FEDERAL COMMUNICATIONS COMMISSION
John J. Schauble
Deputy Chief, Broadband Division
Wireless Telecommunications Bureau