E911 Requirements for IP-Enabled Service Providers, 37307-37317 [05-12827]
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Federal Register / Vol. 70, No. 124 / Wednesday, June 29, 2005 / Proposed Rules
in commenting on this action should do
so at this time. Please note that if we
receive adverse comment on an
amendment, paragraph, or section of
this rule and if that provision may be
severed from the remainder of the rule,
we may adopt as final those provisions
of the rule that are not the subject of an
adverse comment.
For additional information, see the
direct final rule which is located in the
final rules and regulations section of
this Federal Register.
Dated: June 20, 2005.
Julie Hagensen,
Acting Regional Administrator, Region 10.
[FR Doc. 05–12712 Filed 6–28–05; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 9
[WC Docket No. 05–196; FCC 05–116]
E911 Requirements for IP-Enabled
Service Providers
Federal Communications
Commission.
ACTION: Notice of proposed rulemaking.
AGENCY:
SUMMARY: The Federal Communications
Commission (Commission) proposes to
amend its rules that require providers of
interconnected VoIP (VoIP) services—
meaning VoIP service that allows a user
generally to receive calls originating
from and to terminate calls to the public
switched telephone network (PSTN)—to
provide enhanced 911 (E911)
capabilities to their customers as a
standard feature of service. The
Commission initiates this rulemaking to
determine what additional steps it
should take to ensure that providers of
VoIP services that interconnect with the
nation’s PSTN provide ubiquitous and
reliable E911 service. These changes
will enhance public safety and ensure
E911 access to emergency services for
users of interconnected VoIP services.
DATES: Comments are due on or before
August 15, 2005, and reply comments
are due on or before September 12,
2005.
You may submit comments,
identified by WC Docket No. 05–196, by
any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Agency Web Site: https://
www.fcc.gov. Follow the instructions for
submitting comments on https://
www.fcc.gov/cgb/ecfs/.
ADDRESSES:
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• E-mail: ecfs@fcc.gov, and include
the following words in the body of the
message, ‘‘get form.’’ A sample form and
directions will be sent in response.
• Mail: Federal Communications
Commission, 445 12th Street, SW.,
Washington DC 20554 .
• Hand Delivery/Courier: 236
Massachusetts Avenue, NE., Suite 110,
Washington, DC 20002.
Instructions: All submissions received
must include the agency name and
docket number for this rulemaking. All
comments received will be posted
without change to https://www.fcc.gov/
cgb/ecfs/, including any personal
information provided. For detailed
instructions on submitting comments
and additional information on the
rulemaking process, see the ‘‘Public
Participation’’ heading of the
SUPPLEMENTARY INFORMATION section of
this document.
Docket: For access to the docket to
read background documents or
comments received, go https://
www.fcc.gov/cgb/ecfs/.
FOR FURTHER INFORMATION CONTACT:
Christi Shewman, Attorney-Advisor,
Competition Policy Division, Wireline
Competition Bureau, at (202) 418–1686.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Notice of
Proposed Rulemaking (NPRM) in WC
Docket No. 05–196, FCC 05–116,
adopted May 19, 2005, and released
June 3, 2005. The complete text of this
NPRM is available for inspection and
copying during normal business hours
in the FCC Reference Information
Center, Portals II, 445 12th Street, SW.,
Room CY-A257, Washington, DC,
20554. This document may also be
purchased from the Commission’s
duplicating contractor, Best Copy and
Printing, Inc., 445 12th Street, SW.,
Room CY-B402, Washington, DC 20554,
telephone (800) 378–3160 or (202) 863–
2893, facsimile (202) 863–2898, or via email at https://www.bcpiweb.com. It is
also available on the Commission’s Web
site at https://www.fcc.gov.
Public Participation
Comments may be filed using: (1) The
Commission’s Electronic Comment
Filing System (ECFS), (2) the Federal
Government’s eRulemaking Portal, or (3)
by filing paper copies. See Electronic
Filing of Documents in Rulemaking
Proceedings, 63 FR 24121 (May 1, 1998).
• Electronic Filers: Comments may be
filed electronically using the Internet by
accessing the ECFS: https://www.fcc.gov/
cgb/ecfs/ or the Federal eRulemaking
Portal: https://www.regulations.gov.
Filers should follow the instructions
provided on the Web site for submitting
comments.
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• For ECFS filers, if multiple docket
or rulemaking numbers appear in the
caption of this proceeding, filers must
transmit one electronic copy of the
comments for each docket or
rulemaking number referenced in the
caption. In completing the transmittal
screen, filers should include their full
name, U.S. Postal Service mailing
address, and the applicable docket or
rulemaking number. Parties may also
submit an electronic comment by
Internet e-mail. To get filing
instructions, filers should send an email to ecfs@fcc.gov, and include the
following words in the body of the
message, ‘‘get form.’’ A sample form and
directions will be sent in response.
• Paper Filers: Parties who choose to
file by paper must file an original and
four copies of each filing. If more than
one docket or rulemaking number
appears in the caption of this
proceeding, filers must submit two
additional copies for each additional
docket or rulemaking number.
Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail
(although we continue to experience
delays in receiving U.S. Postal Service
mail). All filings must be addressed to
the Commission’s Secretary, Office of
the Secretary, Federal Communications
Commission.
• The Commission’s contractor will
receive hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary at 236
Massachusetts Avenue, NE., Suite 110,
Washington, DC 20002. The filing hours
at this location are 8 a.m. to 7 p.m. All
hand deliveries must be held together
with rubber bands or fasteners. Any
envelopes must be disposed of before
entering the building.
• Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9300
East Hampton Drive, Capitol Heights,
MD 20743.
• U.S. Postal Service first-class,
Express, and Priority mail should be
addressed to 445 12th Street, SW.,
Washington DC 20554.
All filings must be addressed to the
Commission’s Secretary, Marlene H.
Dortch, Office of the Secretary, Federal
Communications Commission, 445 12th
Street, SW., Washington, DC 20554.
Parties should also send a copy of their
filings to Janice Myles, Competition
Policy Division, Wireline Competition
Bureau, Federal Communications
Commission, Room 5–C140, 445 12th
Street, SW., Washington, DC 20554, or
by e-mail to Janice.myles@fcc.gov.
Parties shall also serve one copy with
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the Commission’s copy contractor, Best
Copy and Printing, Inc. (BCPI), Portals
II, 445 12th Street, SW., Room CY–B402,
Washington, DC 20554, (202) 488–5300,
or via e-mail to fcc@bcpiweb.com.
Synopsis of the Notice of Proposed
Rulemaking (NPRM)
1. In this NPRM, we seek comment on
what additional steps the Commission
should take to ensure that providers of
VoIP services that interconnect with the
nation’s PSTN provide ubiquitous and
reliable E911 service. The Order that
accompanies this NPRM is published
elsewhere in this issue of the Federal
Register. This Order is the
Commission’s first step to ensure that
the life-saving benefits of E911 service
that wireline telephone and wireless
telephone users have come to rely on
also are extended to citizens who
choose to communicate using
interconnected VoIP services. Due to the
existing state of technology, today’s
Order relies in some cases on users to
provide the location information that
will be delivered to public safety
answering points (PSAPs) in an
emergency, and thus is an immediate
step toward a more advanced solution
in which the user automatically can be
located without assistance from the
user. We seek comment on what the
Commission can do to further the
development of this new technology,
and on issues raised by today’s Order,
including whether the Commission
should expand the scope and
requirements of this Order. Commenters
should take note of the Commission’s
view that while a provider of VoIP
service enjoys the opportunity to
introduce new and exciting public
interest benefits to the communications
marketplace, and to profit from those
offerings, that opportunity brings with it
the responsibility to ensure that public
safety is protected.
2. As the Commission previously has
discussed, one of the central customer
benefits of portable interconnected VoIP
services is the lack of geographic
restrictions. However, because portable
interconnected VoIP services may be
offered independent of geography,
currently there is no way for portable
VoIP providers reliably and
automatically to provide location
information to PSAPs for these services
without the customer’s active
cooperation. What can the Commission
do to facilitate the development of
techniques for automatically identifying
the geographic location of users of this
type of VoIP service? What role should
the Commission play to further the
evolution of E911 service and E911
systems that do not depend on a
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customer providing his or her location
information? A number of possible
methods have been proposed to
automatically identify the location of a
VoIP user, including gathering location
information through the use of: an
access jack inventory; a wireless access
point inventory; access point mapping
and triangulation; HDTV signal
triangulation; and various GPS-based
solutions. What role would be most
productive for the Commission to play
in facilitating the adoption of one or
more of these possible solutions, or
facilitating some other solution, to
automatically identify a VoIP service
customer’s location? Are any of these
solutions more promising than others?
Are there any reasons why certain of
these solutions are unworkable? What
other solutions could be used to provide
location information automatically in
the VoIP service context? Should the
Commission require all terminal
adapters or other equipment used in the
provision of interconnected VoIP
service sold as of June 1, 2006 to be
capable of providing location
information automatically, whether
embedded in other equipment or sold to
customers as a separate device? Under
what authority could the Commission
take such actions?
3. We also seek comment on issues
raised by our decision today to impose
E911 service obligations on providers of
interconnected VoIP services. The scope
of today’s Order is limited to providers
of interconnected VoIP services. We
seek comment on whether the
Commission should extend these
obligations, or similar obligations, to
providers of other VoIP services that are
not covered by the rules adopted today.
For instance, what E911 obligations, if
any, should apply to VoIP services that
are not fully interconnected to the
PSTN? Specifically, should E911
obligations apply to VoIP services that
enable users to terminate calls to the
PSTN but do not permit users to receive
calls that originate on the PSTN? Should
E911 obligations apply to the converse
situation in which a VoIP service
enables users to receive calls from the
PSTN but does not permit the user to
make calls terminating to the PSTN? We
tentatively conclude that a provider of
a VoIP service offering that permits
users generally to receive calls that
originate on the PSTN and separately
makes available a different offering that
permits users generally to terminate
calls to the PSTN should be subject to
the rules we adopt in today’s Order if a
user can combine those separate
offerings or can use them
simultaneously or in immediate
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succession. Are there any other services
upon which the Commission should
impose E911 obligations, including any
IP-based voice services that do not
require a broadband connection?
4. Does the Commission need to adopt
regulations in addition to those imposed
by today’s Order to ensure that
interconnected VoIP service customers
obtain the required level of E911
services? It is our expectation that enduser updates of Registered Location
information will take place
immediately. If this is not feasible, what
performance standards should the
Commission adopt regarding the length
of time between when an end user
updates Registered Location information
and when the service provider takes the
actions necessary to enable E911 from
that new location? How should such
requirements be structured? How
should providers of interconnected VoIP
service satisfy the requirements we
adopt today in cases in which a
subscriber’s Registered Location is not
associated with a street address? What
requirements, if any, should we impose
on providers of interconnected VoIP
service in geographic areas served by
PSAPs that are not connected to a
Selective Router? How should the use of
wireless broadband connections such as
Wi-Fi or WiMax impact the
applicability of the obligations we adopt
today? Would providers of wireless
interconnected VoIP service be more
appropriately subject to our existing
911/E911 rules for commercial mobile
radio service? Should the Commission
require VoIP service providers to create
redundant systems for providing E911
services, such as requiring redundant
trunks to each Selective Router and/or
requiring that multiple Selective
Routers be able to route calls to each
PSAP? We also seek comment on
whether the Commission should impose
additional or more restrictive customer
notification requirements relating to
E911 on VoIP providers, and on the
sufficiency of our customer
acknowledgement requirements.
5. Should the Commission impose
reporting obligations on VoIP service
providers other than the compliance
letter we impose in today’s Order? Are
there other ways for the Commission to
monitor implementation of its E911
rules without imposing reporting
requirements? We note that the
Commission has imposed progress
reporting requirements in the past for
implementation and enforcement of
911/E911 transition deadlines for
wireless and wireline providers. Should
the Commission require interconnected
VoIP providers to report what progress
they are making in developing ways to
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locate automatically a user who dials
911? Should the Commission require
reporting of any other information by
interconnected VoIP providers? If the
Commission adopts additional reporting
requirements, what are the appropriate
deadlines for such progress reports?
Under what authority could the
Commission take such actions?
6. We seek comment on what role
states can and should play to help
implement the E911 rules we adopt
today. We recognize the historic and
important role of states and localities in
public safety matters. State and local
governments have filled an especially
important role in creating and regulating
911/E911 operations—a role states have
shouldered even in the context of
wireless services. Should state and local
governments play a role similar to the
roles they play in implementing the
Commission’s wireless 911/E911 rules?
Should the Commission take any action
to facilitate the states’ ability to collect
911 fees from interconnected VoIP
providers, either directly or indirectly?
How can the Commission and the states
work together to ensure the public’s
safety?
7. Should the Commission adopt any
customer privacy protections related to
provision of E911 service by
interconnected VoIP service providers?
The E911 rules we adopt today when
fully implemented will require
interconnected VoIP service providers
to transmit a customer’s Registered
Location to an appropriate PSAP, which
necessarily requires providers of such
services to maintain a list of their
customers’ Registered Location, and
makes that information available to
public safety professionals and others
when the customer dials 911. Wireline
and wireless telecommunications
carriers are already subject to privacy
requirements. Should the Commission
adopt similar privacy protections in the
context of interconnected VoIP service?
Under what authority could we adopt
such rules?
8. Finally, we seek comment on
whether persons with disabilities can
use interconnected VoIP service and
other VoIP services to directly call a
PSAP via a TTY in light of the
requirement in Title II of the Americans
with Disabilities Act (ADA) that PSAPs
be directly accessible by TTYs.
Furthermore, the Commission in 1999
released a Notice of Inquiry (64 FR
63277, November 19, 1999) raising
specific questions regarding the
application of the disability accessibility
provisions found in sections 251(a)(2)
and 255 of the Communications Act, as
amended (Act), in the context of ‘‘IP
telephony’’ and ‘‘computer-based
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equipment that replicates
telecommunications functionality.’’
That Notice of Inquiry sought comment
on the extent to which Internet
telephony was impairing access to
communications services among people
with disabilities, the efforts that
manufacturers were taking to render
new technologies accessible, and the
degree to which these technologies
should be subjected to the same
disability access requirements as
traditional telephony facilities. We ask
commenters to refresh the record in that
proceeding in light of today’s Order by
filing comments in this docket. Are
there any steps that the Commission
needs to take to ensure that people with
disabilities who desire to use
interconnected VoIP service obtain
access to E911 services? What is the
basis of the Commission’s authority to
impose any obligations that commenters
feel are warranted?
Initial Paperwork Reduction Act of
1995 Analysis
9. This document does not contain
proposed information collection
requirements subject to the Paperwork
Reduction Act of 1995, Public Law 104–
13. In addition, therefore, it does not
contain any proposed information
collection burden ‘‘for small business
concerns with fewer than 25
employees,’’ pursuant to the Small
Business Paperwork Relief Act of 2002,
Public Law 107–198, see 44 U.S.C.
3506(c)(4).
Initial Regulatory Flexibility Analysis
10. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA), the Commission has prepared the
present Initial Regulatory Flexibility
Analysis (IRFA) of the possible
significant economic impact on small
entities that might result from this
Notice of Proposed Rulemaking
(NPRM). Written public comments are
requested on this IRFA. Comments must
be identified as responses to the IRFA
and must be filed by the deadlines for
comments on the NPRM provided
above. The Commission will send a
copy of the NPRM, including this IRFA,
to the Chief Counsel for Advocacy of the
Small Business Administration.
1. Need for, and Objectives of, the
Proposed Rules
11. In the NPRM, we seek comment
on what additional steps the
Commission should take to ensure that
providers of VoIP services that
interconnect with the nation’s existing
public switched telephone network—
‘‘interconnected VoIP service’’—provide
ubiquitous and reliable E911 service.
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Due to the existing state of technology,
the Order relies on users to provide the
location information that will be
delivered to PSAPs in an emergency,
and thus is an immediate step toward a
more advanced solution in which the
user automatically can be located
without assistance form the user. The
NPRM seeks comment on: What the
Commission can do to further the
development of this new technology;
whether the Commission should expand
the scope and requirements of this
Order; the role states can and should
play in the implementation thereof; the
need for consumer privacy protections;
the need for stronger customer
notification practices relating to 911
service; and whether persons with
disabilities can use interconnected VoIP
service and other VoIP services to
directly call a PSAP via a TTY in light
of the requirement in Title II of the
Americans with Disabilities Act (ADA)
that PSAPs be directly accessible by
TTYs. The NPRM further asks
commenters to refresh the record
regarding the application of the
disability accessibility provisions found
in sections 251(a)(2) and 255 of the Act
in the context of ‘‘IP telephony’’ and
‘‘computer-based equipment that
replicates telecommunications
functionality.’’
2. Legal Basis
12. The legal basis for any action that
may be taken pursuant to this NPRM is
contained in sections 1, 4(i), 4(j), 251(e),
and 303(r) of the Communications Act
of 1934, as amended, 47 U.S.C. 151,
154(i)–(j), 251(e), 303(r), and sections
1.1, 1.48, 1.411, 1.412, 1.415, 1.419, and
1.1200–1.1216, of the Commission’s
rules, 47 CFR 1.1, 1.48, 1.411, 1.412,
1.415, 1.419, 1.1200–1.1216.
3. Description and Estimate of the
Number of Small Entities to Which
Rules May Apply
13. The RFA directs agencies to
provide a description of and, where
feasible, an estimate of the number of
small entities that may be affected by
the proposed rules. The RFA generally
defines the term ‘‘small entity’’ as
having the same meaning as the terms
‘‘small business,’’ ‘‘small organization,’’
and ‘‘small governmental jurisdiction.’’
In addition, the term ‘‘small business’’
has the same meaning as the term
‘‘small business concern’’ under the
Small Business Act. A small business
concern is one which: (1) Is
independently owned and operated; (2)
is not dominant in its field of operation;
and (3) satisfies any additional criteria
established by the Small Business
Administration (SBA).
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14. Small Businesses. Nationwide,
there are a total of approximately 22.4
million small businesses, according to
SBA data.
15. Small Organizations. Nationwide,
there are approximately 1.6 million
small organizations.
16. Small Governmental Jurisdictions.
The term ‘‘small governmental
jurisdiction’’ is defined as ‘‘governments
of cities, towns, townships, villages,
school districts, or special districts, with
a population of less than fifty
thousand.’’ As of 1997, there were
approximately 87,453 governmental
jurisdictions in the United States. This
number includes 39,044 county
governments, municipalities, and
townships, of which 37,546
(approximately 96.2%) have
populations of fewer than 50,000, and of
which 1,498 have populations of 50,000
or more. Thus, we estimate the number
of small governmental jurisdictions
overall to be 84,098 or fewer.
a. Telecommunications Service Entities
17. Wireline Carriers and Service
Providers. We have included small
incumbent local exchange carriers in
this present RFA analysis. As noted
above, a ‘‘small business’’ under the
RFA is one that, inter alia, meets the
pertinent small business size standard
(e.g., a telephone communications
business having 1,500 or fewer
employees), and ‘‘is not dominant in its
field of operation.’’ The SBA’s Office of
Advocacy contends that, for RFA
purposes, small incumbent local
exchange carriers are not dominant in
their field of operation because any such
dominance is not ‘‘national’’ in scope.
We have therefore included small
incumbent local exchange carriers in
this RFA analysis, although we
emphasize that this RFA action has no
effect on Commission analyses and
determinations in other, non-RFA
contexts.
18. Incumbent Local Exchange
Carriers (LECs). Neither the Commission
nor the SBA has developed a small
business size standard specifically for
incumbent local exchange services. The
appropriate size standard under SBA
rules is for the category Wired
Telecommunications Carriers. Under
that size standard, such a business is
small if it has 1,500 or fewer employees.
The Commission estimates that most
providers of incumbent local exchange
service are small businesses that may be
affected by our action.
19. Competitive Local Exchange
Carriers (CLECs), Competitive Access
Providers (CAPs), ‘‘Shared-Tenant
Service Providers,’’ and ‘‘Other Local
Service Providers.’’ Neither the
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Commission nor the SBA has developed
a small business size standard
specifically for these service providers.
The appropriate size standard under
SBA rules is for the category Wired
Telecommunications Carriers. Under
that size standard, such a business is
small if it has 1,500 or fewer employees.
The Commission estimates that most
providers of competitive local exchange
service, competitive access providers,
‘‘Shared-Tenant Service Providers,’’ and
‘‘Other Local Service Providers’’ are
small entities that may be affected by
our action.
20. Local Resellers. The SBA has
developed a small business size
standard for the category of
Telecommunications Resellers. Under
that size standard, such a business is
small if it has 1,500 or fewer employees.
The Commission estimates that the
majority of local resellers are small
entities that may be affected by our
action.
21. Toll Resellers. The SBA has
developed a small business size
standard for the category of
Telecommunications Resellers. Under
that size standard, such a business is
small if it has 1,500 or fewer employees.
The Commission estimates that the
majority of toll resellers are small
entities that may be affected by our
action.
22. Payphone Service Providers
(PSPs). Neither the Commission nor the
SBA has developed a small business
size standard specifically for payphone
services providers. The appropriate size
standard under SBA rules is for the
category Wired Telecommunications
Carriers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees. The Commission
estimates that the majority of payphone
service providers are small entities that
may be affected by our action.
23. Interexchange Carriers (IXCs).
Neither the Commission nor the SBA
has developed a small business size
standard specifically for providers of
interexchange services. The appropriate
size standard under SBA rules is for the
category Wired Telecommunications
Carriers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees. The Commission
estimates that the majority of IXCs are
small entities that may be affected by
our action.
24. Operator Service Providers (OSPs).
Neither the Commission nor the SBA
has developed a small business size
standard specifically for operator
service providers. The appropriate size
standard under SBA rules is for the
category Wired Telecommunications
Carriers. Under that size standard, such
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a business is small if it has 1,500 or
fewer employees. The Commission
estimates that the majority of OSPs are
small entities that may be affected by
our action.
25. Prepaid Calling Card Providers.
Neither the Commission nor the SBA
has developed a small business size
standard specifically for prepaid calling
card providers. The appropriate size
standard under SBA rules is for the
category Telecommunications Resellers.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees. The Commission estimates
that all or the majority of prepaid calling
card providers are small entities that
may be affected by our action.
26. 800 and 800-Like Service
Subscribers. Neither the Commission
nor the SBA has developed a small
business size standard specifically for
800 and 800-like service (‘‘toll free’’)
subscribers. The appropriate size
standard under SBA rules is for the
category Telecommunications Resellers.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees. We estimate that there are
7,692,955 or fewer small entity 800
subscribers; 7,706,393 or fewer small
entity 888 subscribers; and 1,946,538 or
fewer small entity 877 subscribers.
27. International Service Providers.
The Commission has not developed a
small business size standard specifically
for providers of international service.
The appropriate size standards under
SBA rules are for the two broad
categories of Satellite
Telecommunications and Other
Telecommunications. Under both
categories, such a business is small if it
has $12.5 million or less in average
annual receipts. The majority of
Satellite Telecommunications firms can
be considered small.
28. The second category—Other
Telecommunications—includes
‘‘establishments primarily engaged in
* * * providing satellite terminal
stations and associated facilities
operationally connected with one or
more terrestrial communications
systems and capable of transmitting
telecommunications to or receiving
telecommunications from satellite
systems.’’ Under this second size
standard, the majority of firms can be
considered small.
29. Wireless Telecommunications
Service Providers. Below, for those
services subject to auctions, we note
that, as a general matter, the number of
winning bidders that qualify as small
businesses at the close of an auction
does not necessarily represent the
number of small businesses currently in
service. Also, the Commission does not
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generally track subsequent business size
unless, in the context of assignments or
transfers, unjust enrichment issues are
implicated.
30. Wireless Service Providers. The
SBA has developed a small business
size standard for wireless firms within
the two broad economic census
categories of ‘‘Paging’’ and ‘‘Cellular and
Other Wireless Telecommunications.’’
Under both SBA categories, a wireless
business is small if it has 1,500 or fewer
employees. Under both categories and
associated small business size
standards, the majority of firms can be
considered small.
31. Cellular Licensees. The SBA has
developed a small business size
standard for wireless firms within the
broad economic census category
‘‘Cellular and Other Wireless
Telecommunications.’’ Under this SBA
category, a wireless business is small if
it has 1,500 or fewer employees. Under
this category and size standard, the great
majority of firms can be considered
small. We have estimated that 245 of the
entities engaged in the provision of
cellular service, Personal
Communications Service (PCS), or
Specialized Mobile Radio (SMR)
Telephony services are small under the
SBA small business size standard.
32. Common Carrier Paging. The SBA
has developed a small business size
standard for wireless firms within the
broad economic census category,
‘‘Cellular and Other Wireless
Telecommunications.’’ Under this SBA
category, a wireless business is small if
it has 1,500 or fewer employees. Under
this category and associated small
business size standard, the majority of
firms can be considered small. In the
Paging Third Report and Order, we
developed a small business size
standard for ‘‘small businesses’’ and
‘‘very small businesses’’ for purposes of
determining their eligibility for special
provisions such as bidding credits and
installment payments. A ‘‘small
business’’ is an entity that, together with
its affiliates and controlling principals,
has average gross revenues not
exceeding $15 million for the preceding
three years. Additionally, a ‘‘very small
business’’ is an entity that, together with
its affiliates and controlling principals,
has average gross revenues that are not
more than $3 million for the preceding
three years. The SBA has approved
these small business size standards. An
auction of Metropolitan Economic Area
licenses commenced on February 24,
2000, and closed on March 2, 2000. Of
the 985 licenses auctioned, 440 were
sold. Fifty-seven companies claiming
small business status won. Also,
according to Commission data, 346
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carriers reported that they were engaged
in the provision of paging and
messaging services. Of those, we
estimate that 341 are small, under the
SBA-approved small business size
standard.
33. Wireless Communications
Services. This service can be used for
fixed, mobile, radiolocation, and digital
audio broadcasting satellite uses. The
Commission established small business
size standards for the wireless
communications services (WCS)
auction. A ‘‘small business’’ is an entity
with average gross revenues of $40
million for each of the three preceding
years, and a ‘‘very small business’’ is an
entity with average gross revenues of
$15 million for each of the three
preceding years. The SBA has approved
these small business size standards. The
Commission auctioned geographic area
licenses in the WCS service. In the
auction, there were seven winning
bidders that qualified as ‘‘very small
business’’ entities, and one that
qualified as a ‘‘small business’’ entity.
34. Wireless Telephony. Wireless
telephony includes cellular, personal
communications services (PCS), and
specialized mobile radio (SMR)
telephony carriers. As noted earlier, the
SBA has developed a small business
size standard for ‘‘Cellular and Other
Wireless Telecommunications’’ services.
Under that SBA small business size
standard, a business is small if it has
1,500 or fewer employees. We have
estimated that 245 of the carriers who
reported to us that they were engaged in
the provision of wireless telephony are
small under the SBA small business size
standard.
35. Broadband Personal
Communications Service. The
broadband Personal Communications
Service (PCS) spectrum is divided into
six frequency blocks designated A
through F, and the Commission has held
auctions for each block. The
Commission defined ‘‘small entity’’ for
Blocks C and F as ‘‘an entity that has
average gross revenues of $40 million or
less in the three previous calendar
years. For Block F, an additional
classification for ‘‘very small business’’
was added and is defined as an entity
that, together with its affiliates, has
average gross revenues of not more than
$15 million for the preceding three
calendar years.’’ These standards
defining ‘‘small entity’’ in the context of
broadband PCS auctions have been
approved by the SBA. No small
businesses, within the SBA-approved
small business size standards bid
successfully for licenses in Blocks A
and B. There were 90 winning bidders
that qualified as small entities in the
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Block C auctions. A total of 93 small
and very small business bidders won
approximately 40 percent of the 1,479
licenses for Blocks D, E, and F. On
March 23, 1999, the Commission reauctioned 347 C, D, E, and F Block
licenses. There were 48 small business
winning bidders. On January 26, 2001,
the Commission completed the auction
of 422 C and F Broadband PCS licenses
in Auction No. 35. Of the 35 winning
bidders in this auction, 29 qualified as
‘‘small’’ or ‘‘very small’’ businesses.
Subsequent events, concerning Auction
35, including judicial and agency
determinations, resulted in a total of 163
C and F Block licenses being available
for grant.
36. Narrowband Personal
Communications Services. To date, two
auctions of narrowband personal
communications services (PCS) licenses
have been conducted. For purposes of
the two auctions that have already been
held, ‘‘small businesses’’ were entities
with average gross revenues for the prior
three calendar years of $40 million or
less. Through these auctions, the
Commission has awarded a total of 41
licenses, out of which 11 were obtained
by small businesses. To ensure
meaningful participation of small
business entities in future auctions, the
Commission has adopted a two-tiered
small business size standard in the
Narrowband PCS Second Report and
Order. A ‘‘small business’’ is an entity
that, together with affiliates and
controlling interests, has average gross
revenues for the three preceding years of
not more than $40 million. A ‘‘very
small business’’ is an entity that,
together with affiliates and controlling
interests, has average gross revenues for
the three preceding years of not more
than $15 million. The SBA has
approved these small business size
standards. In the future, the
Commission will auction 459 licenses to
serve Metropolitan Trading Areas
(MTAs) and 408 response channel
licenses. There is also one megahertz of
narrowband PCS spectrum that has been
held in reserve and that the Commission
has not yet decided to release for
licensing. The Commission cannot
predict accurately the number of
licenses that will be awarded to small
entities in future auctions. However,
four of the 16 winning bidders in the
two previous narrowband PCS auctions
were small businesses, as that term was
defined. The Commission assumes, for
purposes of this analysis, that a large
portion of the remaining narrowband
PCS licenses will be awarded to small
entities. The Commission also assumes
that at least some small businesses will
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acquire narrowband PCS licenses by
means of the Commission’s partitioning
and disaggregation rules.
37. 220 MHz Radio Service—Phase I
Licensees. The 220 MHz service has
both Phase I and Phase II licenses. Phase
I licensing was conducted by lotteries in
1992 and 1993. There are approximately
1,515 such non-nationwide licensees
and four nationwide licensees currently
authorized to operate in the 220 MHz
band. The Commission has not
developed a small business size
standard for small entities specifically
applicable to such incumbent 220 MHz
Phase I licensees. To estimate the
number of such licensees that are small
businesses, we apply the small business
size standard under the SBA rules
applicable to ‘‘Cellular and Other
Wireless Telecommunications’’
companies. This category provides that
a small business is a wireless company
employing no more than 1,500 persons.
Under this second category and size
standard, the majority of firms can be
considered small. Assuming this general
ratio continues in the context of Phase
I 220 MHz licensees, the Commission
estimates that nearly all such licensees
are small businesses under the SBA’s
small business size standard.
38. 220 MHz Radio Service—Phase II
Licensees. The 220 MHz service has
both Phase I and Phase II licenses. The
Phase II 220 MHz service is a new
service, and is subject to spectrum
auctions. In the 220 MHz Third Report
and Order, we adopted a small business
size standard for ‘‘small’’ and ‘‘very
small’’ businesses for purposes of
determining their eligibility for special
provisions such as bidding credits and
installment payments. This small
business size standard indicates that a
‘‘small business’’ is an entity that,
together with its affiliates and
controlling principals, has average gross
revenues not exceeding $15 million for
the preceding three years. A ‘‘very small
business’’ is an entity that, together with
its affiliates and controlling principals,
has average gross revenues that do not
exceed $3 million for the preceding
three years. The SBA has approved
these small business size standards.
Auctions of Phase II licenses
commenced on September 15, 1998, and
closed on October 22, 1998. In the first
auction, 908 licenses were auctioned in
three different-sized geographic areas:
three nationwide licenses, 30 Regional
Economic Area Group (EAG) Licenses,
and 875 Economic Area (EA) Licenses.
Of the 908 licenses auctioned, 693 were
sold. Thirty-nine small businesses won
licenses in the first 220 MHz auction.
The second auction included 225
licenses: 216 EA licenses and 9 EAG
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licenses. Fourteen companies claiming
small business status won 158 licenses.
39. 800 MHz and 900 MHz
Specialized Mobile Radio Licenses. The
Commission awards ‘‘small entity’’ and
‘‘very small entity’’ bidding credits in
auctions for Specialized Mobile Radio
(SMR) geographic area licenses in the
800 MHz and 900 MHz bands to firms
that had revenues of no more than $15
million in each of the three previous
calendar years, or that had revenues of
no more than $3 million in each of the
previous calendar years, respectively.
These bidding credits apply to SMR
providers in the 800 MHz and 900 MHz
bands that either hold geographic area
licenses or have obtained extended
implementation authorizations. The
Commission does not know how many
firms provide 800 MHz or 900 MHz
geographic area SMR service pursuant
to extended implementation
authorizations, nor how many of these
providers have annual revenues of no
more than $15 million. One firm has
over $15 million in revenues. The
Commission assumes, for purposes here,
that all of the remaining existing
extended implementation
authorizations are held by small
entities, as that term is defined by the
SBA. The Commission has held
auctions for geographic area licenses in
the 800 MHz and 900 MHz SMR bands.
There were 60 winning bidders that
qualified as small or very small entities
in the 900 MHz SMR auctions. Of the
1,020 licenses won in the 900 MHz
auction, bidders qualifying as small or
very small entities won 263 licenses. In
the 800 MHz auction, 38 of the 524
licenses won were won by small and
very small entities.
40. 700 MHz Guard Band Licensees.
In the 700 MHz Guard Band Order, we
adopted a small business size standard
for ‘‘small businesses’’ and ‘‘very small
businesses’’ for purposes of determining
their eligibility for special provisions
such as bidding credits and installment
payments. A ‘‘small business’’ as an
entity that, together with its affiliates
and controlling principals, has average
gross revenues not exceeding $15
million for the preceding three years.
Additionally, a ‘‘very small business’’ is
an entity that, together with its affiliates
and controlling principals, has average
gross revenues that are not more than $3
million for the preceding three years.
An auction of 52 Major Economic Area
(MEA) licenses commenced on
September 6, 2000, and closed on
September 21, 2000. Of the 104 licenses
auctioned, 96 licenses were sold to nine
bidders. Five of these bidders were
small businesses that won a total of 26
licenses. A second auction of 700 MHz
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Guard Band licenses commenced on
February 13, 2001 and closed on
February 21, 2001. All eight of the
licenses auctioned were sold to three
bidders. One of these bidders was a
small business that won a total of two
licenses.
41. Rural Radiotelephone Service. The
Commission has not adopted a size
standard for small businesses specific to
the Rural Radiotelephone Service. A
significant subset of the Rural
Radiotelephone Service is the Basic
Exchange Telephone Radio System
(BETRS). The Commission uses the
SBA’s small business size standard
applicable to ‘‘Cellular and Other
Wireless Telecommunications,’’ i.e., an
entity employing no more than 1,500
persons. There are approximately 1,000
licensees in the Rural Radiotelephone
Service, and the Commission estimates
that there are 1,000 or fewer small entity
licensees in the Rural Radiotelephone
Service that may be affected by the rules
and policies adopted herein.
42. Air-Ground Radiotelephone
Service. The Commission has not
adopted a small business size standard
specific to the Air-Ground
Radiotelephone Service. We will use
SBA’s small business size standard
applicable to ‘‘Cellular and Other
Wireless Telecommunications,’’ i.e., an
entity employing no more than 1,500
persons. There are approximately 100
licensees in the Air-Ground
Radiotelephone Service, and we
estimate that almost all of them qualify
as small under the SBA small business
size standard.
43. Aviation and Marine Radio
Services. Small businesses in the
aviation and marine radio services use
a very high frequency (VHF) marine or
aircraft radio and, as appropriate, an
emergency position-indicating radio
beacon (and/or radar) or an emergency
locator transmitter. The Commission has
not developed a small business size
standard specifically applicable to these
small businesses. For purposes of this
analysis, the Commission uses the SBA
small business size standard for the
category ‘‘Cellular and Other
Telecommunications,’’ which is 1,500
or fewer employees. Most applicants for
recreational licenses are individuals.
Approximately 581,000 ship station
licensees and 131,000 aircraft station
licensees operate domestically and are
not subject to the radio carriage
requirements of any statute or treaty.
For purposes of our evaluations in this
analysis, we estimate that there are up
to approximately 712,000 licensees that
are small businesses (or individuals)
under the SBA standard. In addition,
between December 3, 1998 and
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December 14, 1998, the Commission
held an auction of 42 VHF Public Coast
licenses in the 157.1875–157.4500 MHz
(ship transmit) and 161.775–162.0125
MHz (coast transmit) bands. For
purposes of the auction, the
Commission defined a ‘‘small’’ business
as an entity that, together with
controlling interests and affiliates, has
average gross revenues for the preceding
three years not to exceed $15 million
dollars. In addition, a ‘‘very small’’
business is one that, together with
controlling interests and affiliates, has
average gross revenues for the preceding
three years not to exceed $3 million
dollars. There are approximately 10,672
licensees in the Marine Coast Service,
and the Commission estimates that
almost all of them qualify as ‘‘small’’
businesses under the above special
small business size standards.
44. Fixed Microwave Services. Fixed
microwave services include common
carrier, private operational-fixed, and
broadcast auxiliary radio services. At
present, there are approximately 22,015
common carrier fixed licensees and
61,670 private operational-fixed
licensees and broadcast auxiliary radio
licensees in the microwave services.
The Commission has not created a size
standard for a small business
specifically with respect to fixed
microwave services. For purposes of
this analysis, the Commission uses the
SBA small business size standard for the
category ‘‘Cellular and Other
Telecommunications,’’ which is 1,500
or fewer employees. The Commission
does not have data specifying the
number of these licensees that have
more than 1,500 employees, and thus is
unable at this time to estimate with
greater precision the number of fixed
microwave service licensees that would
qualify as small business concerns
under the SBA’s small business size
standard. Consequently, the
Commission estimates that there are up
to 22,015 common carrier fixed
licensees and up to 61,670 private
operational-fixed licensees and
broadcast auxiliary radio licensees in
the microwave services that may be
small and may be affected by the rules
and policies adopted herein. We noted,
however, that the common carrier
microwave fixed licensee category
includes some large entities.
45. Offshore Radiotelephone Service.
This service operates on several UHF
television broadcast channels that are
not used for television broadcasting in
the coastal areas of states bordering the
Gulf of Mexico. There are presently
approximately 55 licensees in this
service. We are unable to estimate at
this time the number of licensees that
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would qualify as small under the SBA’s
small business size standard for
‘‘Cellular and Other Wireless
Telecommunications’’ services. Under
that SBA small business size standard,
a business is small if it has 1,500 or
fewer employees.
46. 39 GHz Service. The Commission
created a special small business size
standard for 39 GHz licenses—an entity
that has average gross revenues of $40
million or less in the three previous
calendar years. An additional size
standard for ‘‘very small business’’ is:
An entity that, together with affiliates,
has average gross revenues of not more
than $15 million for the preceding three
calendar years. The SBA has approved
these small business size standards. The
auction of the 2,173 39 GHz licenses
began on April 12, 2000 and closed on
May 8, 2000. The 18 bidders who
claimed small business status won 849
licenses. Consequently, the Commission
estimates that 18 or fewer 39 GHz
licensees are small entities that may be
affected by the rules and polices
adopted herein.
47. Multipoint Distribution Service,
Multichannel Multipoint Distribution
Service, and ITFS. Multichannel
Multipoint Distribution Service (MMDS)
systems, often referred to as ‘‘wireless
cable,’’ transmit video programming to
subscribers using the microwave
frequencies of the Multipoint
Distribution Service (MDS) and
Instructional Television Fixed Service
(ITFS). In connection with the 1996
MDS auction, the Commission
established a small business size
standard as an entity that had annual
average gross revenues of less than $40
million in the previous three calendar
years. The MDS auctions resulted in 67
successful bidders obtaining licensing
opportunities for 493 Basic Trading
Areas (BTAs). Of the 67 auction
winners, 61 met the definition of a small
business. MDS also includes licensees
of stations authorized prior to the
auction. In addition, the SBA has
developed a small business size
standard for Cable and Other Program
Distribution, which includes all such
companies generating $12.5 million or
less in annual receipts. According to
Census Bureau data for 1997, there were
a total of 1,311 firms in this category,
total, that had operated for the entire
year. Of this total, 1,180 firms had
annual receipts of under $10 million
and an additional 52 firms had receipts
of $10 million or more but less than $25
million. Consequently, we estimate that
the majority of providers in this service
category are small businesses that may
be affected by the rules and policies
adopted herein. This SBA small
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business size standard also appears
applicable to ITFS. There are presently
2,032 ITFS licensees. All but 100 of
these licenses are held by educational
institutions. Educational institutions are
included in this analysis as small
entities. Thus, we tentatively conclude
that at least 1,932 licensees are small
businesses.
48. Local Multipoint Distribution
Service. Local Multipoint Distribution
Service (LMDS) is a fixed broadband
point-to-multipoint microwave service
that provides for two-way video
telecommunications. The auction of the
1,030 Local Multipoint Distribution
Service (LMDS) licenses began on
February 18, 1998 and closed on March
25, 1998. The Commission established a
small business size standard for LMDS
licenses as an entity that has average
gross revenues of less than $40 million
in the three previous calendar years. An
additional small business size standard
for ‘‘very small business’’ was added as
an entity that, together with its affiliates,
has average gross revenues of not more
than $15 million for the preceding three
calendar years. The SBA has approved
these small business size standards in
the context of LMDS auctions. We
conclude that the number of small
LMDS licenses consists of the 93
winning bidders in the first auction and
the 40 winning bidders in the reauction, for a total of 133 small entity
LMDS providers.
49. 218–219 MHz Service. The first
auction of 218–219 MHz spectrum
resulted in 170 entities winning licenses
for 594 Metropolitan Statistical Area
(MSA) licenses. Of the 594 licenses, 557
were won by entities qualifying as a
small business. For that auction, the
small business size standard was an
entity that, together with its affiliates,
has no more than a $6 million net worth
and, after federal income taxes
(excluding any carry over losses), has no
more than $2 million in annual profits
each year for the previous two years. In
the 218–219 MHz Report and Order and
Memorandum Opinion and Order, we
established a small business size
standard for a ‘‘small business’’ as an
entity that, together with its affiliates
and persons or entities that hold
interests in such an entity and their
affiliates, has average annual gross
revenues not to exceed $15 million for
the preceding three years. A ‘‘very small
business’’ is defined as an entity that,
together with its affiliates and persons
or entities that hold interests in such an
entity and its affiliates, has average
annual gross revenues not to exceed $3
million for the preceding three years.
We cannot estimate, however, the
number of licenses that will be won by
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entities qualifying as small or very small
businesses under our rules in future
auctions of 218–219 MHz spectrum.
50. 24 GHz—Incumbent Licensees.
This analysis may affect incumbent
licensees who were relocated to the 24
GHz band from the 18 GHz band, and
applicants who wish to provide services
in the 24 GHz band. The applicable SBA
small business size standard is that of
‘‘Cellular and Other Wireless
Telecommunications’’ companies. This
category provides that such a company
is small if it employs no more than
1,500 persons. Under this size standard,
the great majority of firms can be
considered small.
51. 24 GHz—Future Licensees. With
respect to new applicants in the 24 GHz
band, the small business size standard
for ‘‘small business’’ is an entity that,
together with controlling interests and
affiliates, has average annual gross
revenues for the three preceding years
not in excess of $15 million. ‘‘Very
small business’’ in the 24 GHz band is
an entity that, together with controlling
interests and affiliates, has average gross
revenues not exceeding $3 million for
the preceding three years. The SBA has
approved these small business size
standards. These size standards will
apply to the future auction, if held.
b. Cable and OVS Operators
52. Cable and Other Program
Distribution. This category includes
cable systems operators, closed circuit
television services, direct broadcast
satellite services, multipoint
distribution systems, satellite master
antenna systems, and subscription
television services. The SBA has
developed small business size standard
for this census category, which includes
all such companies generating $12.5
million or less in revenue annually. The
Commission estimates that the majority
of providers in this service category are
small businesses that may be affected by
the rules and policies adopted herein.
53. Cable System Operators (Rate
Regulation Standard). The Commission
has developed its own small business
size standard for cable system operators,
for purposes of rate regulation. Under
the Commission’s rules, a ‘‘small cable
company’’ is one serving fewer than
400,000 subscribers nationwide. The
Commission estimates that there
currently are fewer than 1,439 small
entity cable system operators that may
be affected by the rules and policies
adopted herein.
54. Cable System Operators (Telecom
Act Standard). The Communications
Act of 1934, as amended, also contains
a size standard for small cable system
operators, which is ‘‘a cable operator
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that, directly or through an affiliate,
serves in the aggregate fewer than 1
percent of all subscribers in the United
States and is not affiliated with any
entity or entities whose gross annual
revenues in the aggregate exceed
$250,000,000.’’ The Commission has
determined that there are 67,700,000
subscribers in the United States.
Therefore, an operator serving fewer
than 677,000 subscribers shall be
deemed a small operator, if its annual
revenues, when combined with the total
annual revenues of all its affiliates, do
not exceed $250 million in the
aggregate. Based on available data, the
Commission estimates that the number
of cable operators serving 677,000
subscribers or fewer, totals 1,450. The
Commission neither requests nor
collects information on whether cable
system operators are affiliated with
entities whose gross annual revenues
exceed $250 million, and therefore are
unable, at this time, to estimate more
accurately the number of cable system
operators that would qualify as small
cable operators under the size standard
contained in the Communications Act of
1934.
55. Open Video Services. Open Video
Service (OVS) systems provide
subscription services. The SBA has
created a small business size standard
for Cable and Other Program
Distribution. This standard provides
that a small entity is one with $12.5
million or less in annual receipts. The
Commission concludes that up to 24
OVS operators might qualify as small
businesses that may be affected by the
rules and policies adopted herein.
c. Internet Service Providers
56. Internet Service Providers. The
SBA has developed a small business
size standard for Internet Service
Providers (ISPs). ISPs ‘‘provide clients
access to the Internet and generally
provide related services such as Web
hosting, Web page designing, and
hardware or software consulting related
to Internet connectivity.’’ Under the
SBA size standard, such a business is
small if it has average annual receipts of
$21 million or less. According to Census
Bureau data for 1997, there were 2,751
firms in this category that operated for
the entire year. We estimate that the
majority of these firms are small entities
that may be affected by our action.
d. Other Internet-Related Entities
57. Web Search Portals. Our action
pertains to VoIP services, which could
be provided by entities that provide
other services such as email, online
gaming, Web browsing, video
conferencing, instant messaging, and
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other, similar IP-enabled services. The
Commission has not adopted a size
standard for entities that create or
provide these types of services or
applications. However, the census
bureau has identified firms that
‘‘operate Web sites that use a search
engine to generate and maintain
extensive databases of Internet
addresses and content in an easily
searchable format. Web search portals
often provide additional Internet
services, such as e-mail, connections to
other Web sites, auctions, news, and
other limited content, and serve as a
home base for Internet users.’’ The SBA
has developed a small business size
standard for this category; that size
standard is $6 million or less in average
annual receipts. We estimate that the
majority of these firms are small entities
that may be affected by our action.
58. Data Processing, Hosting, and
Related Services. Entities in this
category ‘‘primarily * * * provid[e]
infrastructure for hosting or data
processing services.’’ The SBA has
developed a small business size
standard for this category; that size
standard is $21 million or less in
average annual receipts. We estimate
that the majority of these firms are small
entities that may be affected by our
action.
59. All Other Information Services.
‘‘This industry comprises
establishments primarily engaged in
providing other information services
(except new syndicates and libraries
and archives).’’ Our action pertains to
VoIP services, which could be provided
by entities that provide other services
such as email, online gaming, web
browsing, video conferencing, instant
messaging, and other, similar IP-enabled
services. The SBA has developed a
small business size standard for this
category; that size standard is $6 million
or less in average annual receipts. We
estimate that the majority of these firms
are small entities that may be affected
by our action.
60. Internet Publishing and
Broadcasting. ‘‘This industry comprises
establishments engaged in publishing
and/or broadcasting content on the
Internet exclusively. These
establishments do not provide
traditional (non-Internet) versions of the
content that they publish or broadcast.’’
The SBA has developed a small
business size standard for this new
(2002) census category; that size
standard is 500 or fewer employees. To
assess the prevalence of small entities in
this category, we will use 1997 Census
Bureau data for a relevant, nowsuperseded census category, ‘‘All Other
Information Services.’’ The SBA small
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business size standard for that prior
category was $6 million or less in
average annual receipts. We estimate
that the majority of the firms in this
current category are small entities that
may be affected by our action.
61. Software Publishers. These
companies may design, develop or
publish software and may provide other
support services to software purchasers,
such as providing documentation or
assisting in installation. The companies
may also design software to meet the
needs of specific users. The SBA has
developed a small business size
standard of $21 million or less in
average annual receipts for all of the
following pertinent categories: Software
Publishers, Custom Computer
Programming Services, and Other
Computer Related Services. We estimate
that the majority of the firms in each of
these three categories are small entities
that may be affected by our action.
62. Equipment Manufacturers. The
equipment manufacturers described in
this section are merely indirectly
affected by our current action, and
therefore are not formally a part of this
IRFA analysis. We have included them,
however, to broaden the record in this
proceeding and to alert them to our
decisions.
63. Wireless Communications
Equipment Manufacturers. The SBA has
established a small business size
standard for Radio and Television
Broadcasting and Wireless
Communications Equipment
Manufacturing. Examples of products in
this category include ‘‘transmitting and
receiving antennas, cable television
equipment, GPS equipment, pagers,
cellular phones, mobile
communications equipment, and radio
and television studio and broadcasting
equipment’’ and may include other
devices that transmit and receive IPenabled services, such as personal
digital assistants (PDAs). Under the SBA
size standard, firms are considered
small if they have 750 or fewer
employees. We estimate that the
majority of wireless communications
equipment manufacturers are small
entities that may be affected by our
action.
64. Telephone Apparatus
Manufacturing. This category
‘‘comprises establishments primarily
engaged primarily in manufacturing
wire telephone and data
communications equipment.’’ Examples
of pertinent products are ‘‘central office
switching equipment, cordless
telephones (except cellular), PBX
equipment, telephones, telephone
answering machines, and data
communications equipment, such as
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bridges, routers, and gateways.’’ The
SBA has developed a small business
size standard for this category of
manufacturing; that size standard is
1,000 or fewer employees. We estimate
that the majority of these establishments
are small entities that may be affected
by our action.
65. Electronic Computer
Manufacturing. This category
‘‘comprises establishments primarily
engaged in manufacturing and/or
assembling electronic computers, such
as mainframes, personal computers,
workstations, laptops, and computer
servers.’’ The SBA has developed a
small business size standard for this
category of manufacturing; that size
standard is 1,000 or fewer employees.
We estimate that the majority of these
establishments are small entities that
may be affected by our action.
66. Computer Terminal
Manufacturing. ‘‘Computer terminals
are input/output devices that connect
with a central computer for processing.’’
The SBA has developed a small
business size standard for this category
of manufacturing; that size standard is
1,000 or fewer employees. We estimate
that the majority or all of these
establishments are small entities that
may be affected by our action.
67. Other Computer Peripheral
Equipment Manufacturing. Examples of
peripheral equipment in this category
include keyboards, mouse devices,
monitors, and scanners. The SBA has
developed a small business size
standard for this category of
manufacturing; that size standard is
1,000 or fewer employees. We estimate
that the majority of these establishments
are small entities that may be affected
by our action.
68. Fiber Optic Cable Manufacturing.
These establishments manufacture
‘‘insulated fiber-optic cable from
purchased fiber-optic strand.’’ The SBA
has developed a small business size
standard for this category of
manufacturing; that size standard is
1,000 or fewer employees. We estimate
that the majority of these establishments
are small entities that may be affected
by our action.
69. Other Communication and Energy
Wire Manufacturing. These
establishments manufacture ‘‘insulated
wire and cable of nonferrous metals
from purchased wire.’’ The SBA has
developed a small business size
standard for this category of
manufacturing; that size standard is
1,000 or fewer employees. We estimate
that the majority or all of these
establishments are small entities that
may be affected by our action.
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70. Audio and Video Equipment
Manufacturing. These establishments
manufacture ‘‘electronic audio and
video equipment for home
entertainment, motor vehicle, public
address and musical instrument
amplifications.’’ The SBA has
developed a small business size
standard for this category of
manufacturing; that size standard is 750
or fewer employees. We estimate that
the majority of these establishments are
small entities that may be affected by
our action.
71. Electron Tube Manufacturing.
These establishments are ‘‘primarily
engaged in manufacturing electron tubes
and parts (except glass blanks).’’ The
SBA has developed a small business
size standard for this category of
manufacturing; that size standard is 750
or fewer employees. We estimate that
the majority of these establishments are
small entities that may be affected by
our action.
72. Bare Printed Circuit Board
Manufacturing. These establishments
are ‘‘primarily engaged in
manufacturing bare (i.e., rigid or
flexible) printed circuit boards without
mounted electronic components.’’ The
SBA has developed a small business
size standard for this category of
manufacturing; that size standard is 500
or fewer employees. We estimate that
the majority of these establishments are
small entities that may be affected by
our action.
73. Semiconductor and Related
Device Manufacturing. These
establishments manufacture ‘‘computer
storage devices that allow the storage
and retrieval of data from a phase
change, magnetic, optical, or magnetic/
optical media.’’ The SBA has developed
a small business size standard for this
category of manufacturing; that size
standard is 500 or fewer employees.
According to Census Bureau data for
1997, there were 987 establishments in
this category that had employment of
under 500.
74. Electronic Capacitor
Manufacturing. These establishments
manufacture ‘‘electronic fixed and
variable capacitors and condensers.’’
The SBA has developed a small
business size standard for this category
of manufacturing; that size standard is
500 or fewer employees. According to
Census Bureau data for 1997, there were
128 establishments in this category that
operated for the entire year. Of these,
121 had employment of under 500, and
four establishments had employment of
500 to 999.
75. Electronic Resistor Manufacturing.
These establishments manufacture
‘‘electronic resistors, such as fixed and
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variable resistors, resistor networks,
thermistors, and varistors.’’ The SBA
has developed a small business size
standard for this category of
manufacturing; that size standard is 500
or fewer employees. According to
Census Bureau data for 1997, there were
118 establishments in this category that
operated for the entire year. Of these,
113 had employment of under 500, and
5 establishments had employment of
500 to 999.
76. Electronic Coil, Transformer, and
Other Inductor Manufacturing. These
establishments manufacture ‘‘electronic
inductors, such as coils and
transformers.’’ The SBA has developed
a small business size standard for this
category of manufacturing; that size
standard is 500 or fewer employees.
According to Census Bureau data for
1997, there were 448 establishments in
this category that operated for the entire
year. Of these, 446 had employment of
under 500, and two establishments had
employment of 500 to 999.
77. Electronic Connector
Manufacturing. These establishments
manufacture ‘‘electronic connectors,
such as coaxial, cylindrical, rack and
panel, pin and sleeve, printed circuit
and fiber optic.’’ The SBA has
developed a small business size
standard for this category of
manufacturing; that size standard is 500
or fewer employees. According to
Census Bureau data for 1997, there were
347 establishments in this category that
operated for the entire year. Of these,
332 had employment of under 500, and
12 establishments had employment of
500 to 999.
78. Printed Circuit Assembly
(Electronic Assembly) Manufacturing.
These are establishments ‘‘primarily
engaged in loading components onto
printed circuit boards or who
manufacture and ship loaded printed
circuit boards.’’ The SBA has developed
a small business size standard for this
category of manufacturing; that size
standard is 500 or fewer employees.
According to Census Bureau data for
1997, there were 714 establishments in
this category that operated for the entire
year. Of these, 673 had employment of
under 500, and 24 establishments had
employment of 500 to 999.
79. Other Electronic Component
Manufacturing. These are
establishments ‘‘primarily engaged in
loading components onto printed circuit
boards or who manufacture and ship
loaded printed circuit boards.’’ The SBA
has developed a small business size
standard for this category of
manufacturing; that size standard is 500
or fewer employees. According to
Census Bureau data for 1997, there were
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1,835 establishments in this category
that operated for the entire year. Of
these, 1,814 had employment of under
500, and 18 establishments had
employment of 500 to 999.
80. Computer Storage Device
Manufacturing. These establishments
manufacture ‘‘computer storage devices
that allow the storage and retrieval of
data from a phase change, magnetic,
optical, or magnetic/optical media.’’ The
SBA has developed a small business
size standard for this category of
manufacturing; that size standard is
1,000 or fewer employees. According to
Census Bureau data for 1997, there were
209 establishments in this category that
operated for the entire year. Of these,
197 had employment of under 500, and
eight establishments had employment of
500 to 999.
4. Description of Projected Reporting,
Recordkeeping and Other Compliance
Requirements
81. The NPRM describes a future
requirement the Commission intends to
adopt for an advanced E911 solution for
interconnected VoIP that must include a
method for determining a user’s location
without assistance from the user and
that there will be firm implementation
deadlines for that solution. The NPRM
also seeks comment on what additional
steps the Commission should take to
ensure that providers of VoIP services
provide ubiquitous and reliable E911
service in light of the technological
barriers that apply to VoIP E911
services. For instance, the Commission
seeks comment on how it can facilitate
the development of techniques for
automatically identifying the geographic
location of users of VoIP services, and
notes that a number of possible methods
have been proposed to automatically
identify the location of a VoIP user,
including gathering location
information through the use of: An
access jack inventory; a wireless access
point inventory; access point mapping
and triangulation; HDTV signal
triangulation; and various GPS-based
solutions. The Commission specifically
asks whether it should require all
terminal adapters or other equipment
used in the provision of interconnected
VoIP service sold as of June 1, 2006 to
be capable of providing location
information automatically, whether
embedded in other equipment or sold to
customers as a separate device. The
NPRM also seeks comment on whether
the Commission should expand the
scope of its rules, which are limited to
providers of interconnected VoIP
services. The Commission tentatively
concludes that a provider of a VoIP
service offering that permits users to
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Sfmt 4702
receive calls that originate on the PSTN
and separately makes available a
different offering that permits users to
terminate calls generally to the PSTN
should be subject to the rules if a user
can combine those separate offerings or
can use them simultaneously or in
immediate succession.
82. The Commission also seeks
comment on whether it should adopt
additional regulations to ensure that
interconnected VoIP service customers
obtain the required level of E911
services. Among other things, the
Commission asks whether it should
adopt E911 performance standards,
require system redundancy, and require
additional reporting requirements. The
NPRM also seeks comment on whether
the Commission should impose
additional or more restrictive customer
notification requirements relating to
E911 on VoIP providers, and on the
sufficiency of our customer
acknowledgement requirements. It also
asks whether the Commission should
adopt any customer privacy protections
related to provision of E911 service by
interconnected VoIP service providers,
perhaps similar to the privacy
requirements that apply to wireline and
wireless telecommunications carriers. In
addition, the NPRM seeks comment on
whether there are any steps the
Commission should take to ensure that
people with disabilities who desire to
use VoIP services obtain access to E911
services, such as by imposing on VoIP
technologies the same disability access
requirements as traditional telephony
facilities.
83. Finally, the Commission also asks
what role states can and should play to
help implement the E911 rules. For
instance, the Commission asks whether
state and local governments should play
a role similar to the roles they play in
implementing the Commission’s
wireless E911 rules. The NPRM also
requests comment on whether the
Commission should take any action to
facilitate the states’ ability to collect 911
fees from interconnected VoIP
providers, either directly or indirectly.
5. Steps Taken To Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
84. The RFA requires an agency to
describe any significant alternatives that
it has considered in reaching its
proposed approach, which may include
(among others) the following four
alternatives: (1) The establishment of
differing compliance or reporting
requirements or timetables that take into
account the resources available to small
entities; (2) the clarification,
consolidation, or simplification of
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Federal Register / Vol. 70, No. 124 / Wednesday, June 29, 2005 / Proposed Rules
compliance or reporting requirements
under the rule for small entities; (3) the
use of performance, rather than design,
standards; and (4) an exemption from
coverage of the rule, or any part thereof,
for small entities.
85. The NPRM specifically seeks
comment on whether the Commission
should expand the scope and
requirements of the rules, recognizing
that such an expansion may not be
appropriate with regard to all VoIP
service providers. With one exception,
the NPRM does not adopt any tentative
conclusions regarding what specific
regulations would apply to any entity,
including small entities. We hereby
specifically seek comment on the effect
the various proposals described in the
NPRM, and summarized above, will
have on small entities, and on what
effect alternative rules would have on
those entities. How can the Commission
achieve its goal of ensuring that all users
of VoIP services ultimately covered by
the Commission’s E911 rules are able to
access ubiquitous and reliable E911
service while also imposing the least
necessary burdens on small entities?
What specific steps could the
Commission take in this regard?
6. Federal Rules That May Duplicate,
Overlap, or Conflict With the Proposed
Rules
86. None.
Ordering Clauses
87. It is ordered that pursuant to the
authority contained in sections 1, 4(i),
4(j), 251(e), and 303(r) of the
Communications Act of 1934, as
amended, 47 U.S.C. 151, 154(i)–(j),
251(e), 303(r), the Notice of Proposed
Rulemaking in WC Docket No. 05–196
is adopted.
88. It is further ordered that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Notice of Proposed Rulemaking,
including the Initial Regulatory
Flexibility Analysis, to the Chief
Counsel for Advocacy of the Small
Business Administration.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 05–12827 Filed 6–28–05; 8:45 am]
BILLING CODE 6712–01–P
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FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 64
[CG Docket No. 02–278; DA 05–1346]
Rules and Regulations Implementing
the Telephone Consumer Protection
Act of 1991
Federal Communications
Commission.
ACTION: Proposed rule; petition for
declaratory ruling, comments requested.
AGENCY:
SUMMARY: In this document, the
Commission seeks comment on a
petition for declaratory ruling filed by a
coalition of 33 organizations, including
trade associations, individual
companies, and non-profit entities
engaged in interstate telemarketing
activities (‘‘Joint Petitioners’’), raising
issues concerning the scope of the
Commission’s jurisdiction over
interstate telemarketing calls under the
Telephone Consumer Protection Act
(‘‘TCPA’’). In particular, Joint Petitioners
ask the Commission to issue a ruling
declaring the Commission’s exclusive
regulatory jurisdiction over interstate
telemarketing calls and barring state
regulation of such calls.
DATES: Comments are due on or before
July 29, 2005, and reply comments are
due on or before August 18, 2005.
ADDRESSES: Federal Communications
Commission, 445 12th Street, SW.,
Washington, DC 20554. See
SUPPLEMENTARY INFORMATION for further
filing instructions.
FOR FURTHER INFORMATION CONTACT:
Kelli Farmer, Consumer Policy Division,
Consumer & Governmental Affairs
Bureau, (202) 418–2512 (voice),
Kelli.Farmer@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s
document, DA 05–1346, released May
13, 2005. On July 3, 2003, the
Commission released a Report and
Order (2003 TCPA Order) revising its
rules under the TCPA, published at 68
FR 44144, July 25, 2003. In the 2003
TCPA Order, the Commission
determined that it would consider any
alleged conflicts between state and
federal requirements and the need for
preemption on a case-by-case basis.
Accordingly, the Commission instructed
any party that believes a state law is
inconsistent with section 227 of the
Communications Act or the
Commission’s rules to seek a declaratory
ruling from the Commission. This
petition argues that the Commission has
exclusive jurisdiction over interstate
telemarketing rules and need not deal
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37317
with preemption petitions on a case-bycase basis. When filing comments on the
joint petition, please reference CG
Docket No. 02–278, DA 05–1346.
Comments may be filed using the
Commission’s Electronic Comment
Filing System (ECFS) or by filing paper
copies. See Electronic Filing of
Documents in Rulemaking Proceedings,
63 FR 24121, May 1, 1998. Comments
filed through the ECFS can be sent as an
electronic file via the Internet to
https://www.fcc.gov/e-file/ecfs.html.
Generally, only one copy of an
electronic submission must be filed. In
completing the transmittal screen,
commenters should include their full
name, U.S. Postal Service mailing
address, and the applicable docket or
rulemaking number. Parties may also
submit an electronic comment by
Internet e-mail. To get filing instructions
for e-mail comments, commenters
should send e-mail to ecfs@fcc.gov, and
should include the following words in
the body of the message, ‘‘get form
.’’ A sample form
and directions will be sent in reply.
Parties who choose to file by paper
must send an original and four (4)
copies of each filing. Filings can be sent
by hand or messenger delivery, by
electronic media, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail
(although the Commission continues to
experience delays in receiving U.S.
Postal Service mail). The Commission’s
contractor, Natek, Inc., will receive
hand-delivered or messenger-delivered
paper filings or electronic media for the
Commission’s Secretary at 236
Massachusetts Avenue, NE., Suite 110,
Washington, DC 20002. The filing hours
at this location are 8 a.m. to 7 p.m. All
hand deliveries must be held together
with rubber bands or fasteners. Any
envelopes must be disposed of before
entering the building. Commercial and
electronic media sent by overnight mail
(other than U.S. Postal Service Express
Mail and Priority Mail) must be sent to
9300 East Hampton Drive, Capitol
Heights, MD 20743. U.S. Postal Service
first-class mail, Express Mail, and
Priority Mail should be addressed to 445
12th Street, SW., Washington, DC
20554. All filings must be addressed to
the Commission’s Secretary, Marlene H.
Dortch, Office of the Secretary, Federal
Communications Commission, 445 12th
Street, SW., Room TW–B204,
Washington, DC 20554.
This proceeding shall be treated as a
‘‘permit but disclose’’ proceeding in
accordance with the Commission’s ex
parte rules, 47 CFR 1.1200. Persons
making oral ex parte presentations are
reminded that memoranda summarizing
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Agencies
[Federal Register Volume 70, Number 124 (Wednesday, June 29, 2005)]
[Proposed Rules]
[Pages 37307-37317]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-12827]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 9
[WC Docket No. 05-196; FCC 05-116]
E911 Requirements for IP-Enabled Service Providers
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Federal Communications Commission (Commission) proposes to
amend its rules that require providers of interconnected VoIP (VoIP)
services--meaning VoIP service that allows a user generally to receive
calls originating from and to terminate calls to the public switched
telephone network (PSTN)--to provide enhanced 911 (E911) capabilities
to their customers as a standard feature of service. The Commission
initiates this rulemaking to determine what additional steps it should
take to ensure that providers of VoIP services that interconnect with
the nation's PSTN provide ubiquitous and reliable E911 service. These
changes will enhance public safety and ensure E911 access to emergency
services for users of interconnected VoIP services.
DATES: Comments are due on or before August 15, 2005, and reply
comments are due on or before September 12, 2005.
ADDRESSES: You may submit comments, identified by WC Docket No. 05-196,
by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Agency Web Site: https://www.fcc.gov. Follow the
instructions for submitting comments on https://www.fcc.gov/cgb/ecfs/.
E-mail: ecfs@fcc.gov, and include the following words in
the body of the message, ``get form.'' A sample form and directions
will be sent in response.
Mail: Federal Communications Commission, 445 12th Street,
SW., Washington DC 20554 .
Hand Delivery/Courier: 236 Massachusetts Avenue, NE.,
Suite 110, Washington, DC 20002.
Instructions: All submissions received must include the agency name
and docket number for this rulemaking. All comments received will be
posted without change to https://www.fcc.gov/cgb/ecfs/, including any
personal information provided. For detailed instructions on submitting
comments and additional information on the rulemaking process, see the
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION
section of this document.
Docket: For access to the docket to read background documents or
comments received, go https://www.fcc.gov/cgb/ecfs/.
FOR FURTHER INFORMATION CONTACT: Christi Shewman, Attorney-Advisor,
Competition Policy Division, Wireline Competition Bureau, at (202) 418-
1686.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Proposed Rulemaking (NPRM) in WC Docket No. 05-196, FCC 05-116,
adopted May 19, 2005, and released June 3, 2005. The complete text of
this NPRM is available for inspection and copying during normal
business hours in the FCC Reference Information Center, Portals II, 445
12th Street, SW., Room CY-A257, Washington, DC, 20554. This document
may also be purchased from the Commission's duplicating contractor,
Best Copy and Printing, Inc., 445 12th Street, SW., Room CY-B402,
Washington, DC 20554, telephone (800) 378-3160 or (202) 863-2893,
facsimile (202) 863-2898, or via e-mail at https://www.bcpiweb.com. It
is also available on the Commission's Web site at https://www.fcc.gov.
Public Participation
Comments may be filed using: (1) The Commission's Electronic
Comment Filing System (ECFS), (2) the Federal Government's eRulemaking
Portal, or (3) by filing paper copies. See Electronic Filing of
Documents in Rulemaking Proceedings, 63 FR 24121 (May 1, 1998).
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: https://www.fcc.gov/cgb/ecfs/
or the Federal eRulemaking Portal: https://www.regulations.gov. Filers
should follow the instructions provided on the Web site for submitting
comments.
For ECFS filers, if multiple docket or rulemaking numbers
appear in the caption of this proceeding, filers must transmit one
electronic copy of the comments for each docket or rulemaking number
referenced in the caption. In completing the transmittal screen, filers
should include their full name, U.S. Postal Service mailing address,
and the applicable docket or rulemaking number. Parties may also submit
an electronic comment by Internet e-mail. To get filing instructions,
filers should send an e-mail to ecfs@fcc.gov, and include the following
words in the body of the message, ``get form.'' A sample form and
directions will be sent in response.
Paper Filers: Parties who choose to file by paper must
file an original and four copies of each filing. If more than one
docket or rulemaking number appears in the caption of this proceeding,
filers must submit two additional copies for each additional docket or
rulemaking number.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail (although we continue to experience delays in receiving U.S.
Postal Service mail). All filings must be addressed to the Commission's
Secretary, Office of the Secretary, Federal Communications Commission.
The Commission's contractor will receive hand-delivered or
messenger-delivered paper filings for the Commission's Secretary at 236
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be
held together with rubber bands or fasteners. Any envelopes must be
disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority
mail should be addressed to 445 12th Street, SW., Washington DC 20554.
All filings must be addressed to the Commission's Secretary,
Marlene H. Dortch, Office of the Secretary, Federal Communications
Commission, 445 12th Street, SW., Washington, DC 20554. Parties should
also send a copy of their filings to Janice Myles, Competition Policy
Division, Wireline Competition Bureau, Federal Communications
Commission, Room 5-C140, 445 12th Street, SW., Washington, DC 20554, or
by e-mail to Janice.myles@fcc.gov. Parties shall also serve one copy
with
[[Page 37308]]
the Commission's copy contractor, Best Copy and Printing, Inc. (BCPI),
Portals II, 445 12th Street, SW., Room CY-B402, Washington, DC 20554,
(202) 488-5300, or via e-mail to fcc@bcpiweb.com.
Synopsis of the Notice of Proposed Rulemaking (NPRM)
1. In this NPRM, we seek comment on what additional steps the
Commission should take to ensure that providers of VoIP services that
interconnect with the nation's PSTN provide ubiquitous and reliable
E911 service. The Order that accompanies this NPRM is published
elsewhere in this issue of the Federal Register. This Order is the
Commission's first step to ensure that the life-saving benefits of E911
service that wireline telephone and wireless telephone users have come
to rely on also are extended to citizens who choose to communicate
using interconnected VoIP services. Due to the existing state of
technology, today's Order relies in some cases on users to provide the
location information that will be delivered to public safety answering
points (PSAPs) in an emergency, and thus is an immediate step toward a
more advanced solution in which the user automatically can be located
without assistance from the user. We seek comment on what the
Commission can do to further the development of this new technology,
and on issues raised by today's Order, including whether the Commission
should expand the scope and requirements of this Order. Commenters
should take note of the Commission's view that while a provider of VoIP
service enjoys the opportunity to introduce new and exciting public
interest benefits to the communications marketplace, and to profit from
those offerings, that opportunity brings with it the responsibility to
ensure that public safety is protected.
2. As the Commission previously has discussed, one of the central
customer benefits of portable interconnected VoIP services is the lack
of geographic restrictions. However, because portable interconnected
VoIP services may be offered independent of geography, currently there
is no way for portable VoIP providers reliably and automatically to
provide location information to PSAPs for these services without the
customer's active cooperation. What can the Commission do to facilitate
the development of techniques for automatically identifying the
geographic location of users of this type of VoIP service? What role
should the Commission play to further the evolution of E911 service and
E911 systems that do not depend on a customer providing his or her
location information? A number of possible methods have been proposed
to automatically identify the location of a VoIP user, including
gathering location information through the use of: an access jack
inventory; a wireless access point inventory; access point mapping and
triangulation; HDTV signal triangulation; and various GPS-based
solutions. What role would be most productive for the Commission to
play in facilitating the adoption of one or more of these possible
solutions, or facilitating some other solution, to automatically
identify a VoIP service customer's location? Are any of these solutions
more promising than others? Are there any reasons why certain of these
solutions are unworkable? What other solutions could be used to provide
location information automatically in the VoIP service context? Should
the Commission require all terminal adapters or other equipment used in
the provision of interconnected VoIP service sold as of June 1, 2006 to
be capable of providing location information automatically, whether
embedded in other equipment or sold to customers as a separate device?
Under what authority could the Commission take such actions?
3. We also seek comment on issues raised by our decision today to
impose E911 service obligations on providers of interconnected VoIP
services. The scope of today's Order is limited to providers of
interconnected VoIP services. We seek comment on whether the Commission
should extend these obligations, or similar obligations, to providers
of other VoIP services that are not covered by the rules adopted today.
For instance, what E911 obligations, if any, should apply to VoIP
services that are not fully interconnected to the PSTN? Specifically,
should E911 obligations apply to VoIP services that enable users to
terminate calls to the PSTN but do not permit users to receive calls
that originate on the PSTN? Should E911 obligations apply to the
converse situation in which a VoIP service enables users to receive
calls from the PSTN but does not permit the user to make calls
terminating to the PSTN? We tentatively conclude that a provider of a
VoIP service offering that permits users generally to receive calls
that originate on the PSTN and separately makes available a different
offering that permits users generally to terminate calls to the PSTN
should be subject to the rules we adopt in today's Order if a user can
combine those separate offerings or can use them simultaneously or in
immediate succession. Are there any other services upon which the
Commission should impose E911 obligations, including any IP-based voice
services that do not require a broadband connection?
4. Does the Commission need to adopt regulations in addition to
those imposed by today's Order to ensure that interconnected VoIP
service customers obtain the required level of E911 services? It is our
expectation that end-user updates of Registered Location information
will take place immediately. If this is not feasible, what performance
standards should the Commission adopt regarding the length of time
between when an end user updates Registered Location information and
when the service provider takes the actions necessary to enable E911
from that new location? How should such requirements be structured? How
should providers of interconnected VoIP service satisfy the
requirements we adopt today in cases in which a subscriber's Registered
Location is not associated with a street address? What requirements, if
any, should we impose on providers of interconnected VoIP service in
geographic areas served by PSAPs that are not connected to a Selective
Router? How should the use of wireless broadband connections such as
Wi-Fi or WiMax impact the applicability of the obligations we adopt
today? Would providers of wireless interconnected VoIP service be more
appropriately subject to our existing 911/E911 rules for commercial
mobile radio service? Should the Commission require VoIP service
providers to create redundant systems for providing E911 services, such
as requiring redundant trunks to each Selective Router and/or requiring
that multiple Selective Routers be able to route calls to each PSAP? We
also seek comment on whether the Commission should impose additional or
more restrictive customer notification requirements relating to E911 on
VoIP providers, and on the sufficiency of our customer acknowledgement
requirements.
5. Should the Commission impose reporting obligations on VoIP
service providers other than the compliance letter we impose in today's
Order? Are there other ways for the Commission to monitor
implementation of its E911 rules without imposing reporting
requirements? We note that the Commission has imposed progress
reporting requirements in the past for implementation and enforcement
of 911/E911 transition deadlines for wireless and wireline providers.
Should the Commission require interconnected VoIP providers to report
what progress they are making in developing ways to
[[Page 37309]]
locate automatically a user who dials 911? Should the Commission
require reporting of any other information by interconnected VoIP
providers? If the Commission adopts additional reporting requirements,
what are the appropriate deadlines for such progress reports? Under
what authority could the Commission take such actions?
6. We seek comment on what role states can and should play to help
implement the E911 rules we adopt today. We recognize the historic and
important role of states and localities in public safety matters. State
and local governments have filled an especially important role in
creating and regulating 911/E911 operations--a role states have
shouldered even in the context of wireless services. Should state and
local governments play a role similar to the roles they play in
implementing the Commission's wireless 911/E911 rules? Should the
Commission take any action to facilitate the states' ability to collect
911 fees from interconnected VoIP providers, either directly or
indirectly? How can the Commission and the states work together to
ensure the public's safety?
7. Should the Commission adopt any customer privacy protections
related to provision of E911 service by interconnected VoIP service
providers? The E911 rules we adopt today when fully implemented will
require interconnected VoIP service providers to transmit a customer's
Registered Location to an appropriate PSAP, which necessarily requires
providers of such services to maintain a list of their customers'
Registered Location, and makes that information available to public
safety professionals and others when the customer dials 911. Wireline
and wireless telecommunications carriers are already subject to privacy
requirements. Should the Commission adopt similar privacy protections
in the context of interconnected VoIP service? Under what authority
could we adopt such rules?
8. Finally, we seek comment on whether persons with disabilities
can use interconnected VoIP service and other VoIP services to directly
call a PSAP via a TTY in light of the requirement in Title II of the
Americans with Disabilities Act (ADA) that PSAPs be directly accessible
by TTYs. Furthermore, the Commission in 1999 released a Notice of
Inquiry (64 FR 63277, November 19, 1999) raising specific questions
regarding the application of the disability accessibility provisions
found in sections 251(a)(2) and 255 of the Communications Act, as
amended (Act), in the context of ``IP telephony'' and ``computer-based
equipment that replicates telecommunications functionality.'' That
Notice of Inquiry sought comment on the extent to which Internet
telephony was impairing access to communications services among people
with disabilities, the efforts that manufacturers were taking to render
new technologies accessible, and the degree to which these technologies
should be subjected to the same disability access requirements as
traditional telephony facilities. We ask commenters to refresh the
record in that proceeding in light of today's Order by filing comments
in this docket. Are there any steps that the Commission needs to take
to ensure that people with disabilities who desire to use
interconnected VoIP service obtain access to E911 services? What is the
basis of the Commission's authority to impose any obligations that
commenters feel are warranted?
Initial Paperwork Reduction Act of 1995 Analysis
9. This document does not contain proposed information collection
requirements subject to the Paperwork Reduction Act of 1995, Public Law
104-13. In addition, therefore, it does not contain any proposed
information collection burden ``for small business concerns with fewer
than 25 employees,'' pursuant to the Small Business Paperwork Relief
Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).
Initial Regulatory Flexibility Analysis
10. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA), the Commission has prepared the present Initial
Regulatory Flexibility Analysis (IRFA) of the possible significant
economic impact on small entities that might result from this Notice of
Proposed Rulemaking (NPRM). Written public comments are requested on
this IRFA. Comments must be identified as responses to the IRFA and
must be filed by the deadlines for comments on the NPRM provided above.
The Commission will send a copy of the NPRM, including this IRFA, to
the Chief Counsel for Advocacy of the Small Business Administration.
1. Need for, and Objectives of, the Proposed Rules
11. In the NPRM, we seek comment on what additional steps the
Commission should take to ensure that providers of VoIP services that
interconnect with the nation's existing public switched telephone
network--``interconnected VoIP service''--provide ubiquitous and
reliable E911 service. Due to the existing state of technology, the
Order relies on users to provide the location information that will be
delivered to PSAPs in an emergency, and thus is an immediate step
toward a more advanced solution in which the user automatically can be
located without assistance form the user. The NPRM seeks comment on:
What the Commission can do to further the development of this new
technology; whether the Commission should expand the scope and
requirements of this Order; the role states can and should play in the
implementation thereof; the need for consumer privacy protections; the
need for stronger customer notification practices relating to 911
service; and whether persons with disabilities can use interconnected
VoIP service and other VoIP services to directly call a PSAP via a TTY
in light of the requirement in Title II of the Americans with
Disabilities Act (ADA) that PSAPs be directly accessible by TTYs. The
NPRM further asks commenters to refresh the record regarding the
application of the disability accessibility provisions found in
sections 251(a)(2) and 255 of the Act in the context of ``IP
telephony'' and ``computer-based equipment that replicates
telecommunications functionality.''
2. Legal Basis
12. The legal basis for any action that may be taken pursuant to
this NPRM is contained in sections 1, 4(i), 4(j), 251(e), and 303(r) of
the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i)-(j),
251(e), 303(r), and sections 1.1, 1.48, 1.411, 1.412, 1.415, 1.419, and
1.1200-1.1216, of the Commission's rules, 47 CFR 1.1, 1.48, 1.411,
1.412, 1.415, 1.419, 1.1200-1.1216.
3. Description and Estimate of the Number of Small Entities to Which
Rules May Apply
13. The RFA directs agencies to provide a description of and, where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules. The RFA generally defines the term
``small entity'' as having the same meaning as the terms ``small
business,'' ``small organization,'' and ``small governmental
jurisdiction.'' In addition, the term ``small business'' has the same
meaning as the term ``small business concern'' under the Small Business
Act. A small business concern is one which: (1) Is independently owned
and operated; (2) is not dominant in its field of operation; and (3)
satisfies any additional criteria established by the Small Business
Administration (SBA).
[[Page 37310]]
14. Small Businesses. Nationwide, there are a total of
approximately 22.4 million small businesses, according to SBA data.
15. Small Organizations. Nationwide, there are approximately 1.6
million small organizations.
16. Small Governmental Jurisdictions. The term ``small governmental
jurisdiction'' is defined as ``governments of cities, towns, townships,
villages, school districts, or special districts, with a population of
less than fifty thousand.'' As of 1997, there were approximately 87,453
governmental jurisdictions in the United States. This number includes
39,044 county governments, municipalities, and townships, of which
37,546 (approximately 96.2%) have populations of fewer than 50,000, and
of which 1,498 have populations of 50,000 or more. Thus, we estimate
the number of small governmental jurisdictions overall to be 84,098 or
fewer.
a. Telecommunications Service Entities
17. Wireline Carriers and Service Providers. We have included small
incumbent local exchange carriers in this present RFA analysis. As
noted above, a ``small business'' under the RFA is one that, inter
alia, meets the pertinent small business size standard (e.g., a
telephone communications business having 1,500 or fewer employees), and
``is not dominant in its field of operation.'' The SBA's Office of
Advocacy contends that, for RFA purposes, small incumbent local
exchange carriers are not dominant in their field of operation because
any such dominance is not ``national'' in scope. We have therefore
included small incumbent local exchange carriers in this RFA analysis,
although we emphasize that this RFA action has no effect on Commission
analyses and determinations in other, non-RFA contexts.
18. Incumbent Local Exchange Carriers (LECs). Neither the
Commission nor the SBA has developed a small business size standard
specifically for incumbent local exchange services. The appropriate
size standard under SBA rules is for the category Wired
Telecommunications Carriers. Under that size standard, such a business
is small if it has 1,500 or fewer employees. The Commission estimates
that most providers of incumbent local exchange service are small
businesses that may be affected by our action.
19. Competitive Local Exchange Carriers (CLECs), Competitive Access
Providers (CAPs), ``Shared-Tenant Service Providers,'' and ``Other
Local Service Providers.'' Neither the Commission nor the SBA has
developed a small business size standard specifically for these service
providers. The appropriate size standard under SBA rules is for the
category Wired Telecommunications Carriers. Under that size standard,
such a business is small if it has 1,500 or fewer employees. The
Commission estimates that most providers of competitive local exchange
service, competitive access providers, ``Shared-Tenant Service
Providers,'' and ``Other Local Service Providers'' are small entities
that may be affected by our action.
20. Local Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees. The Commission estimates that the majority of local
resellers are small entities that may be affected by our action.
21. Toll Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees. The Commission estimates that the majority of toll resellers
are small entities that may be affected by our action.
22. Payphone Service Providers (PSPs). Neither the Commission nor
the SBA has developed a small business size standard specifically for
payphone services providers. The appropriate size standard under SBA
rules is for the category Wired Telecommunications Carriers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees. The Commission estimates that the majority of payphone
service providers are small entities that may be affected by our
action.
23. Interexchange Carriers (IXCs). Neither the Commission nor the
SBA has developed a small business size standard specifically for
providers of interexchange services. The appropriate size standard
under SBA rules is for the category Wired Telecommunications Carriers.
Under that size standard, such a business is small if it has 1,500 or
fewer employees. The Commission estimates that the majority of IXCs are
small entities that may be affected by our action.
24. Operator Service Providers (OSPs). Neither the Commission nor
the SBA has developed a small business size standard specifically for
operator service providers. The appropriate size standard under SBA
rules is for the category Wired Telecommunications Carriers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees. The Commission estimates that the majority of OSPs are small
entities that may be affected by our action.
25. Prepaid Calling Card Providers. Neither the Commission nor the
SBA has developed a small business size standard specifically for
prepaid calling card providers. The appropriate size standard under SBA
rules is for the category Telecommunications Resellers. Under that size
standard, such a business is small if it has 1,500 or fewer employees.
The Commission estimates that all or the majority of prepaid calling
card providers are small entities that may be affected by our action.
26. 800 and 800-Like Service Subscribers. Neither the Commission
nor the SBA has developed a small business size standard specifically
for 800 and 800-like service (``toll free'') subscribers. The
appropriate size standard under SBA rules is for the category
Telecommunications Resellers. Under that size standard, such a business
is small if it has 1,500 or fewer employees. We estimate that there are
7,692,955 or fewer small entity 800 subscribers; 7,706,393 or fewer
small entity 888 subscribers; and 1,946,538 or fewer small entity 877
subscribers.
27. International Service Providers. The Commission has not
developed a small business size standard specifically for providers of
international service. The appropriate size standards under SBA rules
are for the two broad categories of Satellite Telecommunications and
Other Telecommunications. Under both categories, such a business is
small if it has $12.5 million or less in average annual receipts. The
majority of Satellite Telecommunications firms can be considered small.
28. The second category--Other Telecommunications--includes
``establishments primarily engaged in * * * providing satellite
terminal stations and associated facilities operationally connected
with one or more terrestrial communications systems and capable of
transmitting telecommunications to or receiving telecommunications from
satellite systems.'' Under this second size standard, the majority of
firms can be considered small.
29. Wireless Telecommunications Service Providers. Below, for those
services subject to auctions, we note that, as a general matter, the
number of winning bidders that qualify as small businesses at the close
of an auction does not necessarily represent the number of small
businesses currently in service. Also, the Commission does not
[[Page 37311]]
generally track subsequent business size unless, in the context of
assignments or transfers, unjust enrichment issues are implicated.
30. Wireless Service Providers. The SBA has developed a small
business size standard for wireless firms within the two broad economic
census categories of ``Paging'' and ``Cellular and Other Wireless
Telecommunications.'' Under both SBA categories, a wireless business is
small if it has 1,500 or fewer employees. Under both categories and
associated small business size standards, the majority of firms can be
considered small.
31. Cellular Licensees. The SBA has developed a small business size
standard for wireless firms within the broad economic census category
``Cellular and Other Wireless Telecommunications.'' Under this SBA
category, a wireless business is small if it has 1,500 or fewer
employees. Under this category and size standard, the great majority of
firms can be considered small. We have estimated that 245 of the
entities engaged in the provision of cellular service, Personal
Communications Service (PCS), or Specialized Mobile Radio (SMR)
Telephony services are small under the SBA small business size
standard.
32. Common Carrier Paging. The SBA has developed a small business
size standard for wireless firms within the broad economic census
category, ``Cellular and Other Wireless Telecommunications.'' Under
this SBA category, a wireless business is small if it has 1,500 or
fewer employees. Under this category and associated small business size
standard, the majority of firms can be considered small. In the Paging
Third Report and Order, we developed a small business size standard for
``small businesses'' and ``very small businesses'' for purposes of
determining their eligibility for special provisions such as bidding
credits and installment payments. A ``small business'' is an entity
that, together with its affiliates and controlling principals, has
average gross revenues not exceeding $15 million for the preceding
three years. Additionally, a ``very small business'' is an entity that,
together with its affiliates and controlling principals, has average
gross revenues that are not more than $3 million for the preceding
three years. The SBA has approved these small business size standards.
An auction of Metropolitan Economic Area licenses commenced on February
24, 2000, and closed on March 2, 2000. Of the 985 licenses auctioned,
440 were sold. Fifty-seven companies claiming small business status
won. Also, according to Commission data, 346 carriers reported that
they were engaged in the provision of paging and messaging services. Of
those, we estimate that 341 are small, under the SBA-approved small
business size standard.
33. Wireless Communications Services. This service can be used for
fixed, mobile, radiolocation, and digital audio broadcasting satellite
uses. The Commission established small business size standards for the
wireless communications services (WCS) auction. A ``small business'' is
an entity with average gross revenues of $40 million for each of the
three preceding years, and a ``very small business'' is an entity with
average gross revenues of $15 million for each of the three preceding
years. The SBA has approved these small business size standards. The
Commission auctioned geographic area licenses in the WCS service. In
the auction, there were seven winning bidders that qualified as ``very
small business'' entities, and one that qualified as a ``small
business'' entity.
34. Wireless Telephony. Wireless telephony includes cellular,
personal communications services (PCS), and specialized mobile radio
(SMR) telephony carriers. As noted earlier, the SBA has developed a
small business size standard for ``Cellular and Other Wireless
Telecommunications'' services. Under that SBA small business size
standard, a business is small if it has 1,500 or fewer employees. We
have estimated that 245 of the carriers who reported to us that they
were engaged in the provision of wireless telephony are small under the
SBA small business size standard.
35. Broadband Personal Communications Service. The broadband
Personal Communications Service (PCS) spectrum is divided into six
frequency blocks designated A through F, and the Commission has held
auctions for each block. The Commission defined ``small entity'' for
Blocks C and F as ``an entity that has average gross revenues of $40
million or less in the three previous calendar years. For Block F, an
additional classification for ``very small business'' was added and is
defined as an entity that, together with its affiliates, has average
gross revenues of not more than $15 million for the preceding three
calendar years.'' These standards defining ``small entity'' in the
context of broadband PCS auctions have been approved by the SBA. No
small businesses, within the SBA-approved small business size standards
bid successfully for licenses in Blocks A and B. There were 90 winning
bidders that qualified as small entities in the Block C auctions. A
total of 93 small and very small business bidders won approximately 40
percent of the 1,479 licenses for Blocks D, E, and F. On March 23,
1999, the Commission re-auctioned 347 C, D, E, and F Block licenses.
There were 48 small business winning bidders. On January 26, 2001, the
Commission completed the auction of 422 C and F Broadband PCS licenses
in Auction No. 35. Of the 35 winning bidders in this auction, 29
qualified as ``small'' or ``very small'' businesses. Subsequent events,
concerning Auction 35, including judicial and agency determinations,
resulted in a total of 163 C and F Block licenses being available for
grant.
36. Narrowband Personal Communications Services. To date, two
auctions of narrowband personal communications services (PCS) licenses
have been conducted. For purposes of the two auctions that have already
been held, ``small businesses'' were entities with average gross
revenues for the prior three calendar years of $40 million or less.
Through these auctions, the Commission has awarded a total of 41
licenses, out of which 11 were obtained by small businesses. To ensure
meaningful participation of small business entities in future auctions,
the Commission has adopted a two-tiered small business size standard in
the Narrowband PCS Second Report and Order. A ``small business'' is an
entity that, together with affiliates and controlling interests, has
average gross revenues for the three preceding years of not more than
$40 million. A ``very small business'' is an entity that, together with
affiliates and controlling interests, has average gross revenues for
the three preceding years of not more than $15 million. The SBA has
approved these small business size standards. In the future, the
Commission will auction 459 licenses to serve Metropolitan Trading
Areas (MTAs) and 408 response channel licenses. There is also one
megahertz of narrowband PCS spectrum that has been held in reserve and
that the Commission has not yet decided to release for licensing. The
Commission cannot predict accurately the number of licenses that will
be awarded to small entities in future auctions. However, four of the
16 winning bidders in the two previous narrowband PCS auctions were
small businesses, as that term was defined. The Commission assumes, for
purposes of this analysis, that a large portion of the remaining
narrowband PCS licenses will be awarded to small entities. The
Commission also assumes that at least some small businesses will
[[Page 37312]]
acquire narrowband PCS licenses by means of the Commission's
partitioning and disaggregation rules.
37. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service
has both Phase I and Phase II licenses. Phase I licensing was conducted
by lotteries in 1992 and 1993. There are approximately 1,515 such non-
nationwide licensees and four nationwide licensees currently authorized
to operate in the 220 MHz band. The Commission has not developed a
small business size standard for small entities specifically applicable
to such incumbent 220 MHz Phase I licensees. To estimate the number of
such licensees that are small businesses, we apply the small business
size standard under the SBA rules applicable to ``Cellular and Other
Wireless Telecommunications'' companies. This category provides that a
small business is a wireless company employing no more than 1,500
persons. Under this second category and size standard, the majority of
firms can be considered small. Assuming this general ratio continues in
the context of Phase I 220 MHz licensees, the Commission estimates that
nearly all such licensees are small businesses under the SBA's small
business size standard.
38. 220 MHz Radio Service--Phase II Licensees. The 220 MHz service
has both Phase I and Phase II licenses. The Phase II 220 MHz service is
a new service, and is subject to spectrum auctions. In the 220 MHz
Third Report and Order, we adopted a small business size standard for
``small'' and ``very small'' businesses for purposes of determining
their eligibility for special provisions such as bidding credits and
installment payments. This small business size standard indicates that
a ``small business'' is an entity that, together with its affiliates
and controlling principals, has average gross revenues not exceeding
$15 million for the preceding three years. A ``very small business'' is
an entity that, together with its affiliates and controlling
principals, has average gross revenues that do not exceed $3 million
for the preceding three years. The SBA has approved these small
business size standards. Auctions of Phase II licenses commenced on
September 15, 1998, and closed on October 22, 1998. In the first
auction, 908 licenses were auctioned in three different-sized
geographic areas: three nationwide licenses, 30 Regional Economic Area
Group (EAG) Licenses, and 875 Economic Area (EA) Licenses. Of the 908
licenses auctioned, 693 were sold. Thirty-nine small businesses won
licenses in the first 220 MHz auction. The second auction included 225
licenses: 216 EA licenses and 9 EAG licenses. Fourteen companies
claiming small business status won 158 licenses.
39. 800 MHz and 900 MHz Specialized Mobile Radio Licenses. The
Commission awards ``small entity'' and ``very small entity'' bidding
credits in auctions for Specialized Mobile Radio (SMR) geographic area
licenses in the 800 MHz and 900 MHz bands to firms that had revenues of
no more than $15 million in each of the three previous calendar years,
or that had revenues of no more than $3 million in each of the previous
calendar years, respectively. These bidding credits apply to SMR
providers in the 800 MHz and 900 MHz bands that either hold geographic
area licenses or have obtained extended implementation authorizations.
The Commission does not know how many firms provide 800 MHz or 900 MHz
geographic area SMR service pursuant to extended implementation
authorizations, nor how many of these providers have annual revenues of
no more than $15 million. One firm has over $15 million in revenues.
The Commission assumes, for purposes here, that all of the remaining
existing extended implementation authorizations are held by small
entities, as that term is defined by the SBA. The Commission has held
auctions for geographic area licenses in the 800 MHz and 900 MHz SMR
bands. There were 60 winning bidders that qualified as small or very
small entities in the 900 MHz SMR auctions. Of the 1,020 licenses won
in the 900 MHz auction, bidders qualifying as small or very small
entities won 263 licenses. In the 800 MHz auction, 38 of the 524
licenses won were won by small and very small entities.
40. 700 MHz Guard Band Licensees. In the 700 MHz Guard Band Order,
we adopted a small business size standard for ``small businesses'' and
``very small businesses'' for purposes of determining their eligibility
for special provisions such as bidding credits and installment
payments. A ``small business'' as an entity that, together with its
affiliates and controlling principals, has average gross revenues not
exceeding $15 million for the preceding three years. Additionally, a
``very small business'' is an entity that, together with its affiliates
and controlling principals, has average gross revenues that are not
more than $3 million for the preceding three years. An auction of 52
Major Economic Area (MEA) licenses commenced on September 6, 2000, and
closed on September 21, 2000. Of the 104 licenses auctioned, 96
licenses were sold to nine bidders. Five of these bidders were small
businesses that won a total of 26 licenses. A second auction of 700 MHz
Guard Band licenses commenced on February 13, 2001 and closed on
February 21, 2001. All eight of the licenses auctioned were sold to
three bidders. One of these bidders was a small business that won a
total of two licenses.
41. Rural Radiotelephone Service. The Commission has not adopted a
size standard for small businesses specific to the Rural Radiotelephone
Service. A significant subset of the Rural Radiotelephone Service is
the Basic Exchange Telephone Radio System (BETRS). The Commission uses
the SBA's small business size standard applicable to ``Cellular and
Other Wireless Telecommunications,'' i.e., an entity employing no more
than 1,500 persons. There are approximately 1,000 licensees in the
Rural Radiotelephone Service, and the Commission estimates that there
are 1,000 or fewer small entity licensees in the Rural Radiotelephone
Service that may be affected by the rules and policies adopted herein.
42. Air-Ground Radiotelephone Service. The Commission has not
adopted a small business size standard specific to the Air-Ground
Radiotelephone Service. We will use SBA's small business size standard
applicable to ``Cellular and Other Wireless Telecommunications,'' i.e.,
an entity employing no more than 1,500 persons. There are approximately
100 licensees in the Air-Ground Radiotelephone Service, and we estimate
that almost all of them qualify as small under the SBA small business
size standard.
43. Aviation and Marine Radio Services. Small businesses in the
aviation and marine radio services use a very high frequency (VHF)
marine or aircraft radio and, as appropriate, an emergency position-
indicating radio beacon (and/or radar) or an emergency locator
transmitter. The Commission has not developed a small business size
standard specifically applicable to these small businesses. For
purposes of this analysis, the Commission uses the SBA small business
size standard for the category ``Cellular and Other
Telecommunications,'' which is 1,500 or fewer employees. Most
applicants for recreational licenses are individuals. Approximately
581,000 ship station licensees and 131,000 aircraft station licensees
operate domestically and are not subject to the radio carriage
requirements of any statute or treaty. For purposes of our evaluations
in this analysis, we estimate that there are up to approximately
712,000 licensees that are small businesses (or individuals) under the
SBA standard. In addition, between December 3, 1998 and
[[Page 37313]]
December 14, 1998, the Commission held an auction of 42 VHF Public
Coast licenses in the 157.1875-157.4500 MHz (ship transmit) and
161.775-162.0125 MHz (coast transmit) bands. For purposes of the
auction, the Commission defined a ``small'' business as an entity that,
together with controlling interests and affiliates, has average gross
revenues for the preceding three years not to exceed $15 million
dollars. In addition, a ``very small'' business is one that, together
with controlling interests and affiliates, has average gross revenues
for the preceding three years not to exceed $3 million dollars. There
are approximately 10,672 licensees in the Marine Coast Service, and the
Commission estimates that almost all of them qualify as ``small''
businesses under the above special small business size standards.
44. Fixed Microwave Services. Fixed microwave services include
common carrier, private operational-fixed, and broadcast auxiliary
radio services. At present, there are approximately 22,015 common
carrier fixed licensees and 61,670 private operational-fixed licensees
and broadcast auxiliary radio licensees in the microwave services. The
Commission has not created a size standard for a small business
specifically with respect to fixed microwave services. For purposes of
this analysis, the Commission uses the SBA small business size standard
for the category ``Cellular and Other Telecommunications,'' which is
1,500 or fewer employees. The Commission does not have data specifying
the number of these licensees that have more than 1,500 employees, and
thus is unable at this time to estimate with greater precision the
number of fixed microwave service licensees that would qualify as small
business concerns under the SBA's small business size standard.
Consequently, the Commission estimates that there are up to 22,015
common carrier fixed licensees and up to 61,670 private operational-
fixed licensees and broadcast auxiliary radio licensees in the
microwave services that may be small and may be affected by the rules
and policies adopted herein. We noted, however, that the common carrier
microwave fixed licensee category includes some large entities.
45. Offshore Radiotelephone Service. This service operates on
several UHF television broadcast channels that are not used for
television broadcasting in the coastal areas of states bordering the
Gulf of Mexico. There are presently approximately 55 licensees in this
service. We are unable to estimate at this time the number of licensees
that would qualify as small under the SBA's small business size
standard for ``Cellular and Other Wireless Telecommunications''
services. Under that SBA small business size standard, a business is
small if it has 1,500 or fewer employees.
46. 39 GHz Service. The Commission created a special small business
size standard for 39 GHz licenses--an entity that has average gross
revenues of $40 million or less in the three previous calendar years.
An additional size standard for ``very small business'' is: An entity
that, together with affiliates, has average gross revenues of not more
than $15 million for the preceding three calendar years. The SBA has
approved these small business size standards. The auction of the 2,173
39 GHz licenses began on April 12, 2000 and closed on May 8, 2000. The
18 bidders who claimed small business status won 849 licenses.
Consequently, the Commission estimates that 18 or fewer 39 GHz
licensees are small entities that may be affected by the rules and
polices adopted herein.
47. Multipoint Distribution Service, Multichannel Multipoint
Distribution Service, and ITFS. Multichannel Multipoint Distribution
Service (MMDS) systems, often referred to as ``wireless cable,''
transmit video programming to subscribers using the microwave
frequencies of the Multipoint Distribution Service (MDS) and
Instructional Television Fixed Service (ITFS). In connection with the
1996 MDS auction, the Commission established a small business size
standard as an entity that had annual average gross revenues of less
than $40 million in the previous three calendar years. The MDS auctions
resulted in 67 successful bidders obtaining licensing opportunities for
493 Basic Trading Areas (BTAs). Of the 67 auction winners, 61 met the
definition of a small business. MDS also includes licensees of stations
authorized prior to the auction. In addition, the SBA has developed a
small business size standard for Cable and Other Program Distribution,
which includes all such companies generating $12.5 million or less in
annual receipts. According to Census Bureau data for 1997, there were a
total of 1,311 firms in this category, total, that had operated for the
entire year. Of this total, 1,180 firms had annual receipts of under
$10 million and an additional 52 firms had receipts of $10 million or
more but less than $25 million. Consequently, we estimate that the
majority of providers in this service category are small businesses
that may be affected by the rules and policies adopted herein. This SBA
small business size standard also appears applicable to ITFS. There are
presently 2,032 ITFS licensees. All but 100 of these licenses are held
by educational institutions. Educational institutions are included in
this analysis as small entities. Thus, we tentatively conclude that at
least 1,932 licensees are small businesses.
48. Local Multipoint Distribution Service. Local Multipoint
Distribution Service (LMDS) is a fixed broadband point-to-multipoint
microwave service that provides for two-way video telecommunications.
The auction of the 1,030 Local Multipoint Distribution Service (LMDS)
licenses began on February 18, 1998 and closed on March 25, 1998. The
Commission established a small business size standard for LMDS licenses
as an entity that has average gross revenues of less than $40 million
in the three previous calendar years. An additional small business size
standard for ``very small business'' was added as an entity that,
together with its affiliates, has average gross revenues of not more
than $15 million for the preceding three calendar years. The SBA has
approved these small business size standards in the context of LMDS
auctions. We conclude that the number of small LMDS licenses consists
of the 93 winning bidders in the first auction and the 40 winning
bidders in the re-auction, for a total of 133 small entity LMDS
providers.
49. 218-219 MHz Service. The first auction of 218-219 MHz spectrum
resulted in 170 entities winning licenses for 594 Metropolitan
Statistical Area (MSA) licenses. Of the 594 licenses, 557 were won by
entities qualifying as a small business. For that auction, the small
business size standard was an entity that, together with its
affiliates, has no more than a $6 million net worth and, after federal
income taxes (excluding any carry over losses), has no more than $2
million in annual profits each year for the previous two years. In the
218-219 MHz Report and Order and Memorandum Opinion and Order, we
established a small business size standard for a ``small business'' as
an entity that, together with its affiliates and persons or entities
that hold interests in such an entity and their affiliates, has average
annual gross revenues not to exceed $15 million for the preceding three
years. A ``very small business'' is defined as an entity that, together
with its affiliates and persons or entities that hold interests in such
an entity and its affiliates, has average annual gross revenues not to
exceed $3 million for the preceding three years. We cannot estimate,
however, the number of licenses that will be won by
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entities qualifying as small or very small businesses under our rules
in future auctions of 218-219 MHz spectrum.
50. 24 GHz--Incumbent Licensees. This analysis may affect incumbent
licensees who were relocated to the 24 GHz band from the 18 GHz band,
and applicants who wish to provide services in the 24 GHz band. The
applicable SBA small business size standard is that of ``Cellular and
Other Wireless Telecommunications'' companies. This category provides
that such a company is small if it employs no more than 1,500 persons.
Under this size standard, the great majority of firms can be considered
small.
51. 24 GHz--Future Licensees. With respect to new applicants in the
24 GHz band, the small business size standard for ``small business'' is
an entity that, together with controlling interests and affiliates, has
average annual gross revenues for the three preceding years not in
excess of $15 million. ``Very small business'' in the 24 GHz band is an
entity that, together with controlling interests and affiliates, has
average gross revenues not exceeding $3 million for the preceding three
years. The SBA has approved these small business size standards. These
size standards will apply to the future auction, if held.
b. Cable and OVS Operators
52. Cable and Other Program Distribution. This category includes
cable systems operators, closed circuit television services, direct
broadcast satellite services, multipoint distribution systems,
satellite master antenna systems, and subscription television services.
The SBA has developed small business size standard for this census
category, which includes all such companies generating $12.5 million or
less in revenue annually. The Commission estimates that the majority of
providers in this service category are small businesses that may be
affected by the rules and policies adopted herein.
53. Cable System Operators (Rate Regulation Standard). The
Commission has developed its own small business size standard for cable
system operators, for purposes of rate regulation. Under the
Commission's rules, a ``small cable company'' is one serving fewer than
400,000 subscribers nationwide. The Commission estimates that there
currently are fewer than 1,439 small entity cable system operators that
may be affected by the rules and policies adopted herein.
54. Cable System Operators (Telecom Act Standard). The
Communications Act of 1934, as amended, also contains a size standard
for small cable system operators, which is ``a cable operator that,
directly or through an affiliate, serves in the aggregate fewer than 1
percent of all subscribers in the United States and is not affiliated
with any entity or entities whose gross annual revenues in the
aggregate exceed $250,000,000.'' The Commission has determined that
there are 67,700,000 subscribers in the United States. Therefore, an
operator serving fewer than 677,000 subscribers shall be deemed a small
operator, if its annual revenues, when combined with the total annual
revenues of all its affiliates, do not exceed $250 million in the
aggregate. Based on available data, the Commission estimates that the
number of cable operators serving 677,000 subscribers or fewer, totals
1,450. The Commission neither requests nor collects information on
whether cable system operators are affiliated with entities whose gross
annual revenues exceed $250 million, and therefore are unable, at this
time, to estimate more accurately the number of cable system operators
that would qualify as small cable operators under the size standard
contained in the Communications Act of 1934.
55. Open Video Services. Open Video Service (OVS) systems provide
subscription services. The SBA has created a small business size
standard for Cable and Other Program Distribution. This standard
provides that a small entity is one with $12.5 million or less in
annual receipts. The Commission concludes that up to 24 OVS operators
might qualify as small businesses that may be affected by the rules and
policies adopted herein.
c. Internet Service Providers
56. Internet Service Providers. The SBA has developed a small
business size standard for Internet Service Providers (ISPs). ISPs
``provide clients access to the Internet and generally provide related
services such as Web hosting, Web page designing, and hardware or
software consulting related to Internet connectivity.'' Under the SBA
size standard, such a business is small if it has average annual
receipts of $21 million or less. According to Census Bureau data for
1997, there were 2,751 firms in this category that operated for the
entire year. We estimate that the majority of these firms are small
entities that may be affected by our action.
d. Other Internet-Related Entities
57. Web Search Portals. Our action pertains to VoIP services, which
could be provided by entities that provide other services such as
email, online gaming, Web browsing, video conferencing, instant
messaging, and other, similar IP-enabled services. The Commission has
not adopted a size standard for entities that create or provide these
types of services or applications. However, the census bureau has
identified firms that ``operate Web sites that use a search engine to
generate and maintain extensive databases of Internet addresses and
content in an easily searchable format. Web search portals often
provide additional Internet services, such as e-mail, connections to
other Web sites, auctions, news, and other limited content, and serve
as a home base for Internet users.'' The SBA has developed a small
business size standard for this category; that size standard is $6
million or less in average annual receipts. We estimate that the
majority of these firms are small entities that may be affected by our
action.
58. Data Processing, Hosting, and Related Services. Entities in
this category ``primarily * * * provid[e] infrastructure for hosting or
data processing services.'' The SBA has developed a small business size
standard for this category; that size standard is $21 million or less
in average annual receipts. We estimate that the majority of these
firms are small entities that may be affected by our action.
59. All Other Information Services. ``This industry comprises
establishments primarily engaged in providing other information
services (except new syndicates and libraries and archives).'' Our
action pertains to VoIP services, which could be provided by entities
that provide other services such as email, online gaming, web browsing,
video conferencing, instant messaging, and other, similar IP-enabled
services. The SBA has developed a small business size standard for this
category; that size standard is $6 million or less in average annual
receipts. We estimate that the majority of these firms are small
entities that may be affected by our action.
60. Internet Publishing and Broadcasting. ``This industry comprises
establishments engaged in publishing and/or broadcasting content on the
Internet exclusively. These establishments do not provide traditional
(non-Internet) versions of the content that they publish or
broadcast.'' The SBA has developed a small business size standard for
this new (2002) census category; that size standard is 500 or fewer
employees. To assess the prevalence of small entities in this category,
we will use 1997 Census Bureau data for a relevant, now-superseded
census category, ``All Other Information Services.'' The SBA small
[[Page 37315]]
business size standard for that prior category was $6 million or less
in average annual receipts. We estimate that the majority of the firms
in this current category are small entities that may be affected by our
action.
61. Software Publishers. These companies may design, develop or
publish software and may provide other support services to software
purchasers, such as providing documentation or assisting in
installation. The companies may also design software to meet the needs
of specific users. The SBA has developed a small business size standard
of $21 million or less in average annual receipts for all of the
following pertinent categories: Software Publishers, Custom Computer
Programming Services, and Other Computer Related Services. We estimate
that the majority of the firms in each of these three categories are
small entities that may be affected by our action.
62. Equipment Manufacturers. The equipment manufacturers described
in this section are merely indirectly affected by our current action,
and therefore are not formally a part of this IRFA analysis. We have
included them, however, to broaden the record in this proceeding and to
alert them to our decisions.
63. Wireless Communications Equipment Manufacturers. The SBA has
established a small business size standard for Radio and Television
Broadcasting and Wireless Communications Equipment Manufacturing.
Examples of products in this category include ``transmitting and
receiving antennas, cable television equipment, GPS equipment, pagers,
cellular phones, mobile communications equipment, and radio and
television studio and broadcasting equipment'' and may include other
devices that transmit and receive IP-enabled services, such as personal
digital assistants (PDAs). Under the SBA size standard, firms are
considered small if they have 750 or fewer employees. We estimate that
the majority of wireless communications equipment manufacturers are
small entities that may be affected by our action.
64. Telephone Apparatus Manufacturing. This category ``comprises
establishments primarily engaged primarily in manufacturing wire
telephone and data communications equipment.'' Examples of pertinent
products are ``central office switching equipment, cordless telephones
(except cellular), PBX equipment, telephones, telephone answering
machines, and data communications equipment, such as bridges, routers,
and gateways.'' The SBA has developed a small business size standard
for this category of manufacturing; that size standard is 1,000 or
fewer employees. We estimate that the majority of these establishments
are small entities that may be affected by our action.
65. Electronic Computer Manufacturing. This category ``comprises
establishments primarily engaged in manufacturing and/or assembling
electronic computers, such as mainframes, personal computers,
workstations, laptops, and computer servers.'' The SBA has developed a
small business size standard for this category of manufacturing; that
size standard is 1,000 or fewer employees. We estimate that the
majority of these establishments are small entities that may be
affected by our action.
66. Computer Terminal Manufacturing. ``Computer terminals are
input/output devices that connect with a central computer for
processing.'' The SBA has developed a small business size standard for
this category of manufacturing; that size standard is 1,000 or fewer
employees. We estimate that the majority or all of these establishments
are small entities that may be affected by our action.
67. Other Computer Peripheral Equipment Manufacturing. Examples of
peripheral equipment in this category include keyboards, mouse devices,
monitors, and scanners. The SBA has developed a small business size
standard for t