Federal Communications Commission DA 14-50
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of Applications of
NEXTLINK WIRELESS, LLC
Notifications of Completion of Construction for 39 
GHz Common Carrier Microwave Licenses 
WPQT939, WPQT944, and WPQT947
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File Nos. 0005333352, 0005333399 and 
0005333415
MEMORANDUM OPINION AND ORDER
Adopted:  January 15, 2014      Released:  January 16, 2014
By the Deputy Chief, Broadband Division, Wireless Telecommunications Bureau:
I. INTRODUCTION 
1. In this Memorandum Opinion and Order, we find that Nextlink Wireless, LLC (“Nextlink”)
has failed to demonstrate substantial service for its 39 GHz Common Carrier Microwave Station
WPQT947 but has demonstrated substantial service for its 39 GHz Common Carrier Microwave Stations 
WPQT939 and WPQT944.  Based on this determination, the license for Station WPQT947 automatically 
terminated, by operation of Commission rule, as of July 31, 2012.
II. BACKGROUND
2. Licenses in the 38.6-40.0 GHz band (“39 GHz band”) are subject to Part 101 of the 
Commission’s Rules, which generally governs terrestrial microwave operations.
1
  Originally, channels in 
the 39 GHz service were licensed on a licensee-defined Rectangular Service Area (“RSA”) basis, but the 
Commission later revised its rules to provide for Economic Area (“EA”) licenses.
2
  The Commission 
auctioned 39 GHz overlay licenses on an EA basis in 2000.
3
  Licenses in the 39 GHz band are licensed 
for ten-year terms and licensees must demonstrate “substantial service” as part of their applications for
license renewal.
4
In establishing this substantial service standard, the Commission intended to “ensur[e] 
that service is being provided to the public,”
5
but wanted to provide licensees “a significant degree of 
                                                     
1
47 C.F.R. Part 101.
2
Amendment of the Commission's Rules Regarding the 37.0 - 38.6 GHz and 38.6 - 40 GHz Bands, Report and 
Order and Second Notice of Proposed Rulemaking, ET Docket No. 95-183, 12 FCC Rcd 18600 (1997) (39 GHz 
R&O).
3
See 39 GHz Band Auction Closes, Public Notice, 15 FCC Rcd 13648 (WTB 2000).
4
See 47 C.F.R. §§ 101.17, 101.67.  See also, 39 GHz R&O, 12 FCC Rcd at 18626 ¶ 49.
5
39 GHz R&O, 12 FCC Rcd at 18624 ¶ 46.
Federal Communications Commission DA 14-50
2
flexibility in meeting their performance requirement.”
6
  In an effort to give licensees this flexibility, the 
Commission rejected defining specific build-out benchmarks as “unduly restrictive and burdensome.”
7
The Commission did provide, however, a safe harbor example of a substantial service showing as “four 
links per million population within a service area.”
8
  
3. Nextlink is the licensee of three 39 GHz common carrier microwave licenses for Economic 
Area 161, San Diego, CA (“San Diego EA”) whose call signs are WPQT939, WPQT944 and WPQT947
(“the Licenses”).  Nextlink was originally required to renew those Licenses and demonstrate substantial 
service by stations deployed under their authority by October 18, 2010, the expiration date of the Licenses.
9
On July 27, 2010, the Wireless Telecommunications Bureau (“Bureau” or “WTB”) granted Nextlink 
extensions until June 1, 2012 to satisfy the substantial service requirements for the Licenses.
10
  In 2010, the 
Bureau granted ten-year renewals of the Licenses until October 18, 2020, on condition that Nextlink
demonstrate substantial service by the aforementioned June 1, 2012, deadline.
11
  On May 9, 2012, the 
Bureau granted a further extension of the substantial service deadline for the Licenses until July 31, 
2012.
12
  In accordance with Section 101.17 of the Commission’s Rules, Nextlink submitted substantial 
service showings for the Licenses on July 31, 2012.
13
It amended each of the Notifications on August 13, 
2013 to provide a supplement (“Supplement”) and on August 26, 2013 to provide additional information
(“Amended Supplement”).
14
4. Nextlink says that it operates a 39 GHz point-to-multipoint station in San Diego (“the Hub”) 
that covers an estimated population of 630,895, or 20.4 percent of the total BEA population of 3,095,313, 
                                                     
6
Id. at 18623 ¶ 42.
7
Id. at 18623-18624 ¶ 43.
8
Id. at 18624-18625 ¶ 46.  We note that, although the Commission did not use the specific term of “safe harbor” in 
the 39 GHz band context, we believe the Commission intended for this example to serve, in fact, as a “safe harbor.”  
This determination is consistent with similar examples the Commission has provided in other services.  See 
Amendments to Parts 1, 2, 87, and 101 of the Commission’s Rules to License Fixed Services at 24 GHz, WT Docket 
No. 99-327, Report and Order, 15 FCC Rcd 16934, 16951-16952 ¶ 38 (2000); Amendment of Part 95 of the 
Commission’s Rules to Provide Regulatory Flexibility in the 218-219 MHz Service, WT Docket No. 98-169, Report 
and Order and Memorandum Opinion and Order, 15 FCC Rcd 1497, 1537-1538 ¶ 70 (2000); Amendment of the 
Commission’s Rules Concerning Maritime Communications, PR Docket No. 92-257, Third Report and Order and 
Memorandum Opinion and Order, 13 FCC Rcd 19853, 19870 ¶ 34 (1998); Amend Parts 1, 2, 21, and 25 of the 
Commission’s Rules to Redesignate the 27.5-29.5 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, 12660-12661 ¶ 270 (1997); Amendment of the Commission’s Rules to 
Establish Part 27, the Wireless Communications Service, GN Docket No. 96-228, Report and Order, 12 FCC Rcd 
10785, 10843-10844 ¶ 113 (1997).
9
See 47 C.F.R. § 101.17.
10
See File Nos. 0004259579, 0004259584, and 0004259587 (filed May 25, 2010, granted July 27, 2010).
11
See File Nos. 0004422189, 0004422194, and 0004422197 (filed Oct. 14, 2010, granted Dec. 17, 2010).
12
See File Nos. 0005188145, 00051881150 and 0005188153 (filed May 1, 2012, granted May 9, 2012).
13
See File Nos. 0005333352, 0005333399, 0005333415 (filed July 31, 2012) (“Notifications”).
14
See Notifications (amended Aug. 13, 2013 and Aug. 26, 2013).
Federal Communications Commission DA 14-50
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using frequencies assigned to it under all three of the Licenses.
15
  Nextlink notes that for other wireless 
services with geographic area licenses the Commission has established 20 percent population coverage as 
a safe harbor for demonstrating substantial service,
16
and that the Bureau has applied that benchmark in 
accepting substantial service demonstrations for 39 GHz licenses.
17
  In addition, Nextlink says that it 
provides 16 point-to-point links to the San Diego Port Authority (“SDPA”) on channels assigned to it 
under call signs WPQT939 and WPQT944.
18
  It does not list any point-to-point links on the channels 
assigned to it under call sign WPQT947.
19
5. Nextlink states that it designed the Hub to provide wireless Ethernet and private line access as 
well as high-speed, wide-area networking to customers throughout the portion of the San Diego BEA that 
it covers, but that the actual routes in the network vary depending on customer demand and line-of-sight 
constraints.
20
  It further states that, together with its operating affiliate, XO Communications, LLC 
(“XO”), Nextlink has deployed more than 750 links throughout its licensed geographic areas in the 39 
GHz and Local Multipoint Distribution Service (“LMDS”) bands, and that it continues to deploy 
additional links throughout those service areas.
21
  Nextlink further states that its wireless microwave 
services are marketed through a 900-person direct sales force and a well-developed network of agents.
22
  
It says that the affiliated companies have developed a wide range of tools, services and processes to install 
and monitor Nextlink’s wireless network, which are managed by a dedicated staff of radio frequency 
engineers, material specialists and management personnel.
23
III. DISCUSSION
6. To demonstrate substantial service, Nextlink must show that it meets the Commission’s 
definition of substantial service or that it meets one of the safe harbors applicable to 39 GHz licenses.  
Nextlink must demonstrate substantial service “for each channel for which [it holds] a license . . .”
24
  The 
same rule requires licensees to describe their “current service” in terms of geographic coverage and 
                                                     
15
Notifications, Substantial Service Showing, (“Substantial Service Showing”), at 2.
16
Substantial Service Showing at 1-2 and n.3.
17
Substantial Service Showing at 2 and n. 4, citing Substantial Service Notification of IDT Spectrum, LLC, ULS 
Application File No. 0004338108, accepted Aug. 23, 2010, with note: “The acceptance of this application is based 
on a demonstration of point-to-multipoint service to greater than 20% of the population within the service area, 
based on 99.9% signal availability.”
18
See Amended Supplement at 2-3.  Nextlink provides 12 of the point-to-point links on channels assigned to it
under call sign WPQT939 (Channel B) and four of the point-to-point links on channels assigned to it under call sign 
WPQT944 (Channel F), but for each of those links the radio equipment involved is capable of operating on either set 
of channels.  Id.
19
See Amended Supplement at 2-3.  WPQT947 is authorized to operate on channel N.
20
Substantial Service Showing at 1.
21
Substantial Service Showing at 1.
22
Substantial Service Showing at 1.
23
Substantial Service Showing at 1.
24
47 C.F.R. § 101.17(a).
Federal Communications Commission DA 14-50
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population served.
25
  We find that Nextlink has demonstrated substantial service for WPQT939 and 
WPQT944 but has failed to demonstrate substantial service for WPQT947, and that the latter license 
therefore automatically terminated.  Under the first two Licenses, Nextlink is providing a combination of 
services – point-to-multipoint service from the Hub and point-to-point services along other paths.  By 
contrast, Nextlink uses the third license only to provide point-to-multipoint coverage to a small fraction of 
the population in the San Diego BEA.  For the reasons set out below, we find that the point-to-multipoint 
coverage that Nextlink provides from the Hub does not qualify as substantial service by itself, but that the 
combination of point-to-point and point-to-multipoint services that Nextlink provides under two of the 
Licenses do meet the threshold.
7. Nextlink correctly observes that for geographic area licenses in certain frequency bands the 
Commission has established 20 percent population coverage as a safe harbor for demonstrating 
substantial service,
26
and that the Bureau has applied that benchmark in accepting substantial service 
demonstrations for 39 GHz licenses.
27
While Nextlink claims that the Hub’s coverage area exceeds 20 
percent of the San Diego BEA’s population,
28
staff analysis indicates that the hub provides line-of-sight 
coverage to only about 6 percent of the BEA population.
29
  In response to staff inquiries, Nextlink 
counters that line-of-sight issues from the hub are minimal but that, in the event a customer is unable to 
receive service from the hub, Nextlink can address the issue by transmitting the 39 GHz signal to a tower 
or other facility near the customer location and then relaying the signal to the customer.
30
8. To whatever extent Nextlink might be prepared to install repeaters or beam-benders for 
potential new customers who lack line-of-sight access to the hub, the fact remains that it has not yet 
installed them.  The Commission’s 39 GHz rules clearly define substantial service as service as of the 
time of license renewal, not at a later, indeterminate time when the licensee might or might not decide to 
provide that service.  Section 101.17(a) of the Commission’s Rules states, “All 38.6-40.0 GHz band 
                                                     
25
47 C.F.R. § 101.17(a)(1), (2).
26
Substantial Service Showing at 1-2 and n.3, citing Rulemaking to Amend Parts 1, 2, 21 and 25 of the 
Commission’s Rules to Redesignate the 27.5-29.5 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; Petitions for Reconsideration of the Denial of Applications for Waiver of the Commission’s Common 
Carrier Point-to-Point Microwave Radio Service Rules; Suite 12 Group Petition for Pioneer Preference, Second 
Report and Order, Order on Reconsideration, and Fifth Notice of Proposed Rulemaking, 12 FCC Rcd 12545, 12660 
¶ 270 (1997); Reallocation and Service Rules for the 698-746 MHz Spectrum Band (Television Channels 52-59), 
Report and Order, 17 FCC Rcd 1022, 1079 ¶ 151 (2002); Amendment of the Commission’s Rules With Regard to 
the 3650-3700 MHz Government Transfer Band; The 4.9 GHz Band Transferred from Federal Government Use,
First Report and Order and Second Notice of Proposed Rulemaking, 15 FCC Rcd 20488, 20523-20524 ¶ 83 (2000).
27
Substantial Service Showing at 2 and n.4, citing Substantial Service Notification of IDT Spectrum, LLC, File No. 
0004338108, accepted Aug. 23, 2010, with note: “The acceptance of this application is based on a demonstration of 
point-to-multipoint service to greater than 20% of the population within the service area, based on 99.9% signal 
availability.”
28
Substantial Service Showing at 2.
29
The staff used the information provided by Nextlink in its supplement regarding the ground elevation and antenna 
height of the hub station to calculate line of sight from the hub station using 3 second terrain data and used the line 
of sight coverage overlaid on US census block data to estimate the population covered. 
30
Supplement at 1.
Federal Communications Commission DA 14-50
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licensees must demonstrate substantial service at the time of license renewal.”
31
  By contrast, Nextlink is 
asking us to accept the same line of argument that the Commission considered and rejected in its recent 
review of an application by FiberTower Spectrum Holdings, LLC: that preparation to provide substantial 
service is functionally equivalent to substantial service even if the service is not yet being provided.
32
  
While FiberTower’s argument could have some validity in areas where it had some level of service, staff 
analysis shows that Nextlink does not have service in much of the area it claims because of terrain 
blockage.  Here, Nextlink attempts to characterize connections that it might easily provide in the future as 
substantial service during the license period, even though the company is not yet providing that service.  
That, however, does not meet the Commission’s clearly stated and restated position that its substantial 
service requirements refer to actual service at the substantial service deadline. For that reason, we 
conclude that Nextlink has fallen short of the 20 percent safe harbor threshold for point-to-multipoint 
service under each of the three Licenses because its hub provides line-of-sight coverage to only 6 percent 
of the San Diego BEA’s population.
9. As stated above, Nextlink also provides 16 point-to-point links in the San Diego BEA on the 
39 GHz channels licensed to it under WPQT939 and WPQT944.
33
The company says that it provides 12 
of those links on channels assigned to it under WPQT939 and four of the links on channels assigned 
under Station WPQT944.
34
In neither case does the number of point-to-point links reach the four-links-
per-million population safe harbor level that the Commission described in the 39 GHz R&O.
35
  Thus, 
none of the Licenses meets the Commission’s safe harbor thresholds either for percentage of BEA 
population covered or number of links per million population.
10. As the Commission emphasized in the 39 GHz R&O, however, safe harbors do not represent 
absolute requirements and licensees are accorded a significant degree of flexibility in meeting their 
performance requirements.
36
A more flexible evaluation is particularly appropriate where, as in this case, 
the licensee is providing a combination of point-to-point and point-to-multipoint services, neither of 
which reaches a safe harbor threshold on its own.  
11. In addition to its point-to-multipoint service to six percent of the population in the San Diego 
EA, Nextlink’s provision of four or 12 links in each market is significant.  With respect to Station 
WPQT939, the 12 point-to-point links are almost sufficient, by themselves, to meet the safe harbor.  
While Station WPQT944 only has four operating links, we find the provision of service to SDPA to be 
meaningful.  When we add the number of point-to-point links Nextlink has provided to the amount of 
point-to-multipoint population coverage that Nextlink has demonstrated and the unique nature and history 
of the 39 GHz band, we conclude that Nextlink’s service, while not sufficient to meet the Commission’s 
                                                     
31
47 C.F.R. § 101.17(a).
32
See In the Matter of FiberTower Spectrum Holdings, LLC, Requests for Waiver, Extension of Time, or in the 
alternative, Limited Waiver of Substantial Service Requirements to Construct 24 GHz Digital Electronic Message 
Service Licenses, 345 39 GHz Economic Area Licenses, and 250 39 GHz Rectangular Service Area Licenses, 
Memorandum Opinion and Order, 28 FCC Rcd 6822 (“FiberTower MO&O”), 6840-6841 ¶¶ 38-39 (2013).
33
Amended Supplement at 2-3.
34
See Amended Supplement at 2-3.
35
39 GHz R&O at 18624-18625 ¶ 46.  According to Nextlink, the population of the San Diego BEA is 3,095,313.  
Substantial Service Showing at 2.
36
See 39 GHz R&O, 12 FCC Rcd at 18623-18624, ¶¶ 42, 43 and 46.
Federal Communications Commission DA 14-50
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articulated safe harbors, is “substantially above a level of mediocre service.”
37
  In taking into account all 
of the factors noted above, we find that Nextlink has demonstrated that it is using this spectrum to provide 
service to the public, in keeping with the Commission’s policy objectives for adopting construction 
requirements in this band – promoting efficient use of spectrum, encouraging the provision of service and 
preventing spectrum warehousing.
38
12. Our conclusion that Nextlink has demonstrated substantial service is not based upon any 
single factor.  It is based on our review of the record as a whole, including the level of point-to-multipoint 
coverage, the number of point-to-point links, the unique nature and history of the 39 GHz band, and our 
review of the services and markets in question.  We therefore accept Nextlink’s construction notifications
for Stations WPQT939 and WPQT944.
13. By contrast, Nextlink does not report that it is operating any point-to-point links under the 
channels assigned to it under its third license, WPQT947, nor does the company represent that any of the 
point-to-point equipment that it has installed would be capable of operating on those channels.  For 
WPQT947, Nextlink is providing only point-to-multipoint coverage from the hub that reaches 
approximately 6 percent of the population in the San Diego BEA.  That falls far short of the 20 percent 
safe harbor threshold for population coverage.  Nextlink also fails to provide any other information 
concerning its service that would allow us to find substantial service on a case-by-case basis.  Nextlink 
has not sought a waiver or further extension of time to demonstrate substantial service for WPQT947
beyond the aforementioned July 31, 2012 deadline.
39
  Without such extension or waiver, that license 
automatically terminated, by operation of Sections 1.946(c) and 1.955(a)(2) of the Commission’s Rules, 
on July 31, 2012.
40
   
IV. CONCLUSION AND ORDERING CLAUSES     
14. Nextlink has demonstrated substantial service under the authority granted to it under licenses 
WPQT939 and WPQT944 but has failed to demonstrate substantial service for license WPQT947.  It has 
not sought a further extension of time to meet the substantial service deadline for WPQT947, nor has it 
sought a waiver of the July 31, 2012 deadline for establishing substantial service for that license.  
Accordingly, Nextlink’s geographic area license WPQT947 automatically terminated, by operation of 
Commission rule, as of July 31, 2012.
15. 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 Section 1.946 of the Commission’s Rules, 47 C.F.R. 
§ 1.946, that the requests for findings of substantial service made by Nextlink Wireless, LLC, on July 31, 
                                                     
37
See FiberTower MO&O, 28 FCC Rcd at 13568 ¶ 20, citing Amendments to Parts 1, 2, 87 and 101of the 
Commission's Rules to License Fixed Services at 24 GHz, WT Docket No. 99-327, Report and Order, 15 FCC Rcd 
16934, 16951 (2000).
38
Second LMDS Report and Order, 12 FCC Rcd at 12659 ¶ 266.
39
See File No. 0005188153.
40
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).
Federal Communications Commission DA 14-50
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2012, as amended ARE GRANTED with respect to Stations WPQT939 and WPQT944 but DENIED with 
respect to Station WPQT947.
16. IT IS FURTHER ORDERED, pursuant to Sections 4(i) and 309 of the Communications Act 
of 1934, as amended, 47 U.S.C. §§ 154(i), 309, and Section 1.946 of the Commission’s Rules, 47 C.F.R. 
§ 1.946, that the licensing staff of the Broadband Division SHALL ACCEPT the notifications of 
completion of construction filed by Nextlink Wireless, LLC for Stations WPQT939 and WPQT944 (File 
Nos. 0005333352 and 0005333399) but SHALL DENY the notification of completion of construction 
filed by Nextlink Wireless, LLC for Station WPQT947 (File No. 0005333415).
17. 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 Nextlink Wireless, LLC’s license for Station WPQT947 automatically 
terminated as of July 31, 2012.
18. 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