### Question
How is the "preoperational expenses" defined?


### Answer
The term **preoperational expenses** is defined in *47 U.S.C. § 397* as follows -

> all nonconstruction costs incurred by new telecommunications entities before the date on which they begin providing service to the public, and all nonconstruction costs associated with expansion of existing entities before the date on which such expanded capacity is activated, except that such expenses shall not include any portion of the salaries of any personnel employed by an operating public telecommunications entity

#### Citation:
  - *47 U.S.C. § 397*
  - Heading: **CHAPTER 5-WIRE OR RADIO COMMUNICATION > SUBCHAPTER III-SPECIAL PROVISIONS RELATING TO RADIO > Part IV-Assistance for Planning and Construction of Public Telecommunications Facilities; Telecommunications Demonstrations; Corporation for Public Broadcasting; General Provisions > subpart e-general provisions**

