---
kind: "section"
citation: "47 U.S.C. § 1506"
title: "47"
title_heading: "Telecommunications"
number: "1506"
heading: "Rulemaking related to partitioning or disaggregating licenses"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/47/1506"
units:
  - "Chapter 14 — Making Opportunities for Broadband Investment and Limiting Excessive and Needless Obstacles to Wireless"
---

# §1506. Rulemaking related to partitioning or disaggregating licenses

- (a) **Definitions—** In this section:
  - (1) **Covered small carrier—** The term “covered small carrier” means a carrier (as defined in [section 153 of this title](/usc/47/153.md)) that—
    - (A) has not more than 1,500 employees (as determined under section 121.106 of title 13, Code of Federal Regulations, or any successor thereto); and
    - (B) offers services using the facilities of the carrier.
  - (2) **Rural area—** The term “rural area” means any area other than—
    - (A) a city, town, or incorporated area that has a population of more than 20,000 inhabitants; or
    - (B) an urbanized area contiguous and adjacent to a city or town that has a population of more than 50,000 inhabitants.
- (b) **Rulemaking—**
  - (1) **In general—** Not later than 1 year after March 23, 2018, the [Commission](/usc/47/1501.md?p=2) shall initiate a rulemaking proceeding to assess whether to establish a program, or modify existing programs, under which a licensee that receives a license for the exclusive use of spectrum in a specific geographic area under [section 301 of this title](/usc/47/301.md) may partition or disaggregate the license by sale or long-term lease—
    - (A) in order to—
      - (i) provide services consistent with the license; and
      - (ii) make unused spectrum available to—
        - (I) an unaffiliated covered small carrier; or
        - (II) an unaffiliated carrier to serve a rural area; and
    - (B) if the [Commission](/usc/47/1501.md?p=2) finds that such a program would promote—
      - (i) the availability of advanced telecommunications services in rural areas; or
      - (ii) spectrum availability for covered small carriers.
  - (2) **Considerations—** In conducting the rulemaking proceeding under [paragraph (1)](#b-1), the [Commission](/usc/47/1501.md?p=2) shall consider, with respect to the program proposed to be established under that paragraph—
    - (A) whether reduced performance requirements with respect to spectrum obtained through the program would facilitate deployment of advanced telecommunications services in the areas covered by the program;
    - (B) what conditions may be needed on transfers of spectrum under the program to allow covered small carriers that obtain spectrum under the program to build out the spectrum in a reasonable period of time;
    - (C) what incentives may be appropriate to encourage licensees to lease or sell spectrum, including—
      - (i) extending the term of a license granted under [section 301 of this title](/usc/47/301.md); or
      - (ii) modifying performance requirements of the license relating to the leased or sold spectrum; and
    - (D) the administrative feasibility of—
      - (i) the incentives described in [subparagraph (C)](#b-2-C); and
      - (ii) other incentives considered by the [Commission](/usc/47/1501.md?p=2) that further the goals of this section.
  - (3) **Forfeiture of spectrum—** If a party fails to meet any build out requirements set by the [Commission](/usc/47/1501.md?p=2) for any spectrum sold or leased under this section, the right to the spectrum shall be forfeited to the [Commission](/usc/47/1501.md?p=2) unless the [Commission](/usc/47/1501.md?p=2) finds that there is good cause for the failure of the party.
  - (4) **Requirement—** The [Commission](/usc/47/1501.md?p=2) may offer a licensee incentives or reduced performance requirements under this section only if the [Commission](/usc/47/1501.md?p=2) finds that doing so would likely result in increased availability of advanced telecommunications services in a rural area.

## Source credit

(Pub. L. 115–141, div. P, title VI, § 616, Mar. 23, 2018, 132 Stat. 1110.)