; 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 the date of enactment of this Act, the Commission 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 the Communications Act of 1934 ( 47 U.S.C. 301 ) 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 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), the Commission 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 the Communications Act of 1934 ( 47 U.S.C. 301 )