FCC Launches Enhanced Competition Incentive Program

The FCC’s Wireless Telecommunications Bureau is accepting assignment and lease applications in the new Enhanced Competition Incentive Program (ECIP). ECIP seeks to match under-utilized spectrum with under-connected communities by incentivizing wireless licensees to partition, disaggregate, or lease spectrum to small carriers, Tribal Nations, and entities serving rural areas. Building on the July 2022 Report and Order that established ECIP, the FCC’s recent Public Notice announced that eligible parties seeking approval for wireless transactions and leases can now begin receiving benefits under the program.

To participate, parties to a license assignment or lease will demonstrate ECIP eligibility when seeking FCC approval of their transactions. All parties to transactions involving small carriers, Tribal Nations, and rural-focused entities are eligible to receive benefits such as longer license terms, an extension on construction obligations, and more flexible construction requirements. A licensee can file a transaction application seeking ECIP benefits by electronically filing Form 603 for assignments, partitions, and disaggregations, or Form 608 for lease arrangements. These forms have been updated with new ECIP eligibility questions.

There are two categories of ECIP transactions. First, licensees can assign or lease spectrum to unaffiliated tribal nations or small common carriers (those with 1,500 or fewer employees). To take advantage of this opportunity, a licensee must assign or lease at least half of the applicable spectrum rights, and the area assigned or leased must cover at least 25% of the licensed area if that area is 30,000 square miles or less, or 10% of the licensed area if that area is more than 30,000 square miles.

Second, for rural-focused transactions, licensees can assign or lease spectrum in rural areas to any unaffiliated entities, including WISPs. A licensee must assign or lease at least half of the applicable spectrum rights, and the assignment or lease must be for at least 300 contiguous square miles if the licensed area is 30,000 square miles or less, with the threshold scaled upward for larger license areas.

While eligible parties can receive a five-year extension of license term, a one-year extension of interim and final performance requirements under ECIP, and an alternate construction benchmark for rural-focused transactions, they must meet certain requirements. For example, they must construct and operate or provide signal coverage and offer service to 100% of the subject geographic area for at least three years. Also, ECIP assignees and lessees are subject to a five-year holding period, with some exceptions. Penalties for non-compliance include loss of license and exclusion from the ECIP.

For more information about the Enhanced Competition Program, contact an attorney in our Broadband, Spectrum, and Communications Infrastructure practice group.