(a) A renewal applicant shall receive a renewal expectancy at the end of the license period as long as the applicant:
(1) Demonstrates that the licensee has provided continued ``substantial service,'' i.e., service which is sound, favorable, and substantially above a level of mediocre service which just might minimally warrant renewal, during its past license term;
(2) Demonstrates that the licensee has substantially complied with applicable Commission Rules, policies, and the Communications Act of 1934, as amended;
(3) Provides an explanation of the licensee's record of expansion, including a timetable of the construction of new facilities to meet changes in demand for services provided by the licensee; and (4) Provides a description of investments made by the licensee in its system.
(b) In determining whether a renewal applicant has complied with the ``substantial service'' requirement by the end of the ten-year initial license term, the Commission may consider factors such as:
(1) Whether the licensee is offering a specialized or technologically sophisticated service that does not require a high level of coverage to be of benefit to customers; and
(2) Whether the licensee's operations service niche markets or focus on serving populations outside of areas served by other licensees. The ``substantial service'' requirement can, however, be met in other ways, and the Commission will review each licensee's showing on a case-by-case basis.
(c) A ``substantial service'' assessment will be made at renewal pursuant to the procedures contained in Sec. 1.949 of this chapter. [65 FR 17450, Apr. 3, 2000]