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The "spectrum manager" leasing option enables licensees to enter into leasing arrangements without the need for prior Commission approval, as long as the licensee retains legal ("de jure") and actual ("de facto") control of the leased spectrum (under the newly-defined de facto control standard). Lessees must also abide by all technical and interference-related rules applicable to the service or frequency band. The Order requires that spectrum lessees satisfy the eligibility and qualification requirements that are applicable to licensees under their license authorization, including foreign ownership criteria. For "designated entity" licenses, leasing arrangements will be permitted so long as they do not result in a lessee holding a "controlling interest" in the licensee or becoming affiliated with the licensee such that it loses its eligibility.

Under the "de facto transfer" leasing option, the licensee transfers de facto control to the spectrum lessee pursuant to streamlined approval procedures. Under both long-term (longer than 360 days) and short-term (360 days or less) de facto transfer leases, the spectrum lessee, rather than the licensee, exercises de facto control of the leased spectrum. The lessee assumes general responsibility for interacting with the Commission with respect to the leased spectrum and for abiding by all technical and interference-related rules applicable to the service or frequency band. Eligibility rules, qualification rules, and use restrictions applicable to licensees also apply to lessees (though some do not apply for short-term leases). The Commission will look primarily to the spectrum lessee for compliance with the Commission rules.

Under de facto transfer leases, licensees are not required to exercise the kind of operational oversight over both the leased spectrum and the lessee as is required for "spectrum manager" leasing. Licensees are relieved of primary or direct responsibility for ensuring that their lessees' operations comply with Commission rules and policies.