DTV Tuner Requirements, 38800-38804 [05-13027]
Download as PDF
38800
Federal Register / Vol. 70, No. 128 / Wednesday, July 6, 2005 / Rules and Regulations
quotations shall be single-spaced and
indented. All papers, except charts and
maps, shall be typewritten or prepared
by mechanical processing methods,
other than letter press, or printed. The
foregoing shall not apply to official
publications. All copies must be clearly
legible.
*
*
*
*
*
I 15. Section 63.701 is amended by
revising the introductory text and adding
paragraph (j) to read as follows:
§ 63.701
Contents of Application.
Except as otherwise provided in this
part, any party requesting designation as
a recognized operating agency within
the meaning of the International
Telecommunication Convention shall
file a request for such designation with
the Commission. A request for
designation as a recognized operating
agency within the meaning of the
International Telecommunication
Convention shall include a statement of
the nature of the services to be provided
and a statement that the party is aware
that it is obligated under Article 6 of the
ITU Constitution to obey the mandatory
provisions thereof, and all regulations
promulgated thereunder, and a pledge
that it will engage in no conduct or
operations that contravene such
mandatory provisions and that it will
otherwise obey the Convention and
regulations in all respects. The party
must also include a statement that it is
aware that failure to comply will result
in an order from the Federal
Communications Commission to cease
and desist from future violations of an
ITU regulation and may result in
revocation of its recognized operating
agency status by the United States
Department of State. Such statement
must include the following information
where applicable:
*
*
*
*
*
(j) Subject to the availability of
electronic forms, all filings described in
this section must be filed electronically
through the International Bureau Filing
System (IBFS). A list of forms that are
available for electronic filing can be
found on the IBFS homepage. For
information on electronic filing
requirements, see part 1, §§ 1.1000
through 1.10018 of this chapter and the
IBFS homepage at https://www.fcc.gov/
ibfs. See also §§ 63.20 and 63.53.
PART 64—MISCLLANEOUS RULES
RELATING TO COMMON CARRIERS
16. The authority citation for part 64
continues to read as follows:
I
Authority: 47 U.S.C. 154, 254(k); secs.
403(b)(2)(B), (c), Public Law 104–104, 110
VerDate jul<14>2003
16:43 Jul 05, 2005
Jkt 205001
Stat. 56. Interpret or apply 47 U.S.C. 201,
218, 222, 225, 226, 228, and 254(k) unless
otherwise noted.
16a. Section 64.1001 is amended by
revising paragraph (a) and adding
paragraph (f) to read as follows:
I
§ 64.1001 Requests to modify international
settlement arrangements.
(a) The procedures set forth in this
rule apply to carriers that are required
to file with the International Bureau,
pursuant to § 43.51(e) of this chapter,
requests to modify international
settlement arrangements. Any operating
agreement or amendment for which a
modification request is required to be
filed cannot become effective until the
modification request has been granted
under paragraph (e) of this section.
*
*
*
*
*
(f) Subject to the availability of
electronic forms, all modifications and
related submissions described in this
section must be filed electronically
through the International Bureau Filing
System (IBFS). A list of forms that are
available for electronic filing can be
found on the IBFS homepage. For
information on electronic filing
requirements, see part 1, §§ 1.1000
through 1.10018 of this chapter and the
IBFS homepage at https://www.fcc.gov/
ibfs. See also §§ 63.20 and 63.53.
I 17. Section 64.1002 is amended by
revising paragraph (c) and adding
paragraph (e) to read as follows:
§ 64.1002
International settlements policy.
*
*
*
*
*
(c) A carrier that seeks to add a U.S.
international route to the list of routes
that are exempt from the international
settlements policy must make its request
to the International Bureau,
accompanied by a showing that a U.S.
carrier has entered into a benchmarkcompliant settlement rate agreement
with a foreign carrier that possesses
market power in the country at the
foreign end of the U.S. international
route that is the subject of the request.
The required showing shall consist of an
effective accounting rate modification,
filed pursuant to § 64.1001, that
includes a settlement rate that is at or
below the Commission’s benchmark
settlement rate adopted for that country
in IB Docket No. 96–261, Report and
Order, 12 FCC Rcd 19,806, 62 FR 45758,
Aug. 29, 1997, available on the
International Bureau’s World Wide Web
site at https://www.fcc.gov/ib.
*
*
*
*
*
(e) Subject to the availability of
electronic forms, all filings described in
this section must be filed electronically
through the International Bureau Filing
System (IBFS). A list of forms that are
PO 00000
Frm 00050
Fmt 4700
Sfmt 4700
available for electronic filing can be
found on the IBFS homepage. For
information on electronic filing
requirements, see part 1, §§ 1.1000
through 1.10018 of this chapter and the
IBFS homepage at https://www.fcc.gov/
ibfs. See also §§ 63.20 and 63.53.
*
*
*
*
*
[FR Doc. 05–12937 Filed 7–5–05; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 15
[ET Docket No. 05–24; FCC 05–121]
DTV Tuner Requirements
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
SUMMARY: This document modifies the
schedule by which new broadcast
television receivers with screen sizes
25–36″ are required to include the
capability to receive over-the-air digital
television (DTV) broadcast signals. This
action was initiated in response to a
Petition for Rulemaking from the
Consumer Electronics Association and
the Consumer Electronics Retailers
Association (CEA–CERC) requesting that
we eliminate the 50 percent requirement
for the 25–36″ mid-size receivers and
instead advance the date by which 100
percent of these receivers would include
DTV tuners to March 1, 2006. This
action will serve to minimize any
difficulties with the 50 percent
provision at the earliest practicable date
and will also serve to promote the
expeditious completion of the transition
from analog to digital broadcast
television service.
DATES: Effective August 5, 2005.
FOR FURTHER INFORMATION CONTACT:
Alan Stillwell, Office of Engineering
and Technology, (202) 418–2925, email: Alan.Stillwell@fcc.gov, TTY (202)
418–2989.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Report
and Order, ET Docket No. 05–24, FCC
05–121, adopted June 9, 2005, and
released June 9, 2005. The full text of
this document is available on the
Commission’s Internet site at https://
www.fcc.gov. It is also available for
inspection and copying during regular
business hours in the FCC Reference
Center (Room CY–A257), 445 12th
Street, SW., Washington, DC 20554. The
full text of this document also may be
purchased from the Commission’s
duplication contractor, Best Copy and
E:\FR\FM\06JYR1.SGM
06JYR1
Federal Register / Vol. 70, No. 128 / Wednesday, July 6, 2005 / Rules and Regulations
Printing Inc., Portals II, 445 12th St.,
SW., Room CY–B402, Washington, DC
20554; telephone (202) 488–5300; fax
(202) 488–5563; e-mail
FCC@BCPIWEB.COM.
Congressional Review Act
The Commission will send a copy of
this Report & Order, in a report to be
sent to Congress and the General
Accounting Office pursuant to the
Congressional Review Act, see 5 U.S.C.
801(a)(1)(A).
Summary of the Report and Order
1. In the Report and Order (R&O), the
Commission modified the schedule by
which new broadcast television
receivers with screen sizes 25–36″ are
required to include the capability to
receive over-the-air digital television
(DTV) broadcast signals. This provision
of the rules is an element of the
Commission’s phase-in plan for
requiring that all new broadcast
television receivers include DTV
reception capability. The DTV reception
requirement, which is also often termed
the ‘‘DTV tuner requirement,’’ is being
implemented by applying the
requirement first to large screen
receivers and then progressively to
smaller screen units and other devices
over a period of several years. The
decision maintains the existing plan to
require that 50 percent of 25–36″
receivers that are imported or shipped
in interstate commerce include DTV
tuners beginning July 1, 2005, but
modifies the date on which 100 percent
of such receivers must include DTV
tuners by advancing that date from July
1, 2006, to March 1, 2006. The action
was initiated in response to a Petition
for Rulemaking from the Consumer
Electronics Association and the
Consumer Electronics Retailers
Association (CEA–CERC) requesting that
we eliminate the 50 percent requirement
for the 25–36″ mid-size receivers and
instead advance the date by which 100
percent of these receivers would include
DTV tuners to March 1, 2006. While we
understand CEA–CERC’s concern that
the 50 percent requirement may have
posed some difficulties for
manufacturers and retailers, we
nonetheless concluded that maintaining
this approach for the mid-size 25–36″
receivers prior to March 1, 2006, will
most effectively ensure that DTV tuner
equipped sets are available to
consumers this year, and especially for
the 2005 holiday and 2006 Super Bowl
seasons. In this regard, we continue to
believe that it is essential that DTV
reception capability be provided to
consumers in new TV receivers as
rapidly as possible in order to promote
VerDate jul<14>2003
16:43 Jul 05, 2005
Jkt 205001
an expeditious completion of the
transition from analog to digital
broadcast television service. We also
concluded that advancing the date by
which all 25–36″ receivers must include
DTV reception capability to March 1,
2006, will serve to minimize any
difficulties with the 50 percent
provision at the earliest practicable date
and will also serve to expedite the
provision of DTV reception capability to
consumers.
2. In their petition for rulemaking,
CEA–CERC requested that we eliminate
the July 1, 2005, requirement for 50
percent of TV receivers with screen
sizes 25–36″ to include DTV reception
capability and instead advance from
July 1, 2006, to March 1, 2006, the date
for all such receivers to include a DTV
tuner. CEA–CERC submitted that
manufacturers’ and retailers’ experience
with the 50 percent provision for 36″
and larger receivers is that the 50
percent aspect of the phase-in plan is
antithetical to the purpose of the DTV
tuner requirement. They stated that, in
practice, the 50 percent requirement has
proven to be unduly disruptive in the
marketplace in ways unforeseen and, in
fact, threatens to slow, rather than
speed, consumer migration to TV
receivers with DTV tuners. They
indicated that this is because the
experience with 36″ and larger sets is
that consumers typically choose a
lower-priced product with otherwise
similar features except for the DTV
tuner rather than a set with a DTV tuner.
CEA–CERC argued that eliminating the
50 percent rule for 25–36″ receivers and
moving up the date for 100 percent
compliance by such receivers would
better align the policy behind the DTV
tuner rule with market forces and
consumer expectations.
3. In response to the CEA–CERC
petition, we issued a Notice of Proposed
Rulemaking (NPRM), 70 FR 13139,
March 18, 2005, to consider adjusting
the schedule by which new broadcast
television receivers with screen sizes
25–36″ are required to include the
capability to receive digital television
signals. In the NPRM, we requested
comment on whether there is need to
revise the implementation schedule of
the DTV tuner requirement for receivers
with screen sizes 25–36″ to address the
concerns raised by CEA–CERC and, if
so, how that schedule should be revised
to achieve our goal that all new
television receivers include DTV tuning
capability by July 1, 2007. We
specifically requested comment on the
approach suggested by CEA–CERC
whereby the requirement that 50
percent of receivers with screen sizes
25–36″ incorporate a DTV tuner in the
PO 00000
Frm 00051
Fmt 4700
Sfmt 4700
38801
period from July 1, 2005, to July 1, 2006,
would be eliminated and replaced with
a new provision requiring that all
receivers with screen sizes 25–36″ be
required to include a DTV tuner
effective March 1, 2006. We also invited
alternative approaches for addressing
the market situation described in the
CEA–CERC petition and indicated that
we intend to consider the full range of
options that are consistent with our
stated goals. However, we also advised
commenting parties that we did not
intend to extend the July 1, 2007, date
by which all broadcast television
receivers include DTV reception
capability.
4. After review of the record in this
proceeding, we conclude that while the
partial production elements of our DTV
tuner implementation plan may have
caused some confusion in the market,
that approach remains workable and
will best serve to ensure that DTV tuner
equipped receivers in the 25–36″ midsize range are available to consumers
until the 100 percent DTV tuner
requirement goes into effect for these
receivers. We also find that it is in the
interests of consumer electronics
manufacturers and retailers and
consistent with our goals as stated above
to advance the 100 compliance date for
mid-size receivers from July 1, 2006, to
March 1, 2006.
5. With regard to the 50 percent
provision, we find that postponing
application of the DTV tuner
requirement to the 25–36″ receivers
until March 1, the earliest date on
which manufacturers state that they can
meet the 100 percent requirement,
would unacceptably delay the general
availability of DTV reception capability
in these products. While eliminating the
50 percent requirement for mid-size
receivers until the 100 percent
compliance requirement becomes
effective might be more convenient for
manufacturers and retailers, such an
approach would also delay the wider
dissemination of DTV tuners in
products of this size range. It remains
our intent that the implementation
schedule aim for the most rapid
introduction of DTV reception
capability in this size range and indeed
all new television receivers. Postponing
the requirement for inclusion of DTV
tuners in mid-size TV sets would be
inconsistent with our efforts to advance
the DTV transition as rapidly as
possible. Our intent is to stem the flow
of analog-only products as soon as
possible for, every analog-only TV set
sold is a blow to the DTV transition.
6. Initiating the DTV tuner
requirement for mid-size receivers on
March 1, 2006, the date that CEA–CERC
E:\FR\FM\06JYR1.SGM
06JYR1
38802
Federal Register / Vol. 70, No. 128 / Wednesday, July 6, 2005 / Rules and Regulations
and manufacturers submit is the earliest
feasible time by which manufacturers
could meet the 100 percent compliance
requirement, would undermine our goal
of the most rapid introduction of DTV
reception capability. The full eight
months delay in which no mid-size TV
sets would be required to include DTV
tuners under that approach would miss
the entire holiday and Super Bowl
seasons this fall and next winter.
Similarly, postponing the initiation of
the 50 percent requirement until
November 1, 2005 as suggested by CEA–
CERC in their ex parte letter would miss
the summer and most of the fall season
and would also allow a large number of
analog tuners to enter retailers’
inventories for sale just before the
holiday season. Moreover, consumers
who purchase new receivers in the
coming holiday and Super Bowl seasons
would not likely return to the market
again to purchase a new receiver for
several years and so would be without
a DTV tuner equipped device until they
purchased a new set or until they
obtained a separate set-top DTV tuner
unit.
7. We recognize that there are DTV
tuner-equipped mid-size TV receivers
on the market now and that if we were
to eliminate the 50 percent requirement
in favor of a delayed 100 percent
requirement there would still be DTV
tuner equipped sets for consumers to
acquire. Nonetheless, we expect that the
quantity of DTV tuner equipped sets
sold under that approach would be
significantly lower than that under the
50 percent approach, given
manufacturers’ and retailers’ description
of the market. We also believe that it
would further consumer awareness if
manufacturers and retailers would
provide point-of-sale and other
marketing information to consumers
and/or clearly label new television sets
to indicate whether they can receive offthe-air DTV signals or only off-the-air
analog signals. We believe that such
efforts would result in more informed
consumer choices about whether to buy
DTV tuner equipped sets. We therefore
encourage manufacturers and retailers
to clearly label and identify the tuning
capabilities of new TV sets and/or
employ other means to disseminate to
consumers information regarding
whether or not specific models are able
to receive off-the-air digital television
signals.
8. With respect to the 100 percent
compliance date, we conclude that it
will ameliorate the concern of the
consumer electronics manufacturers and
retailers and further our goal of
promoting DTV reception availability to
advance the date on which 100 percent
VerDate jul<14>2003
16:43 Jul 05, 2005
Jkt 205001
of 25–36″ receivers will be required to
include a DTV tuner to March 1, 2006.
Manufacturers have indicated that they
will be able to equip 100 percent of new
mid-size TV sets with DTV tuners by
this date and both manufacturers and
retailers support changing the 100
percent compliance date as a step to
minimize the difficulties posed by the
50 percent requirement. We do not
believe it would be feasible or
practicable to advance the 100 percent
requirement to a date earlier than that
suggested by CEA–CERC. We recogniz
manufacturers’ arguments that the lead
time associated with development of
new products, and particularly the time
needed to establish specifications,
change manufacturing lines, and order
parts, would not allow the industry
generally to meet a 100 percent
compliance requirement before March 1,
2006. It makes little sense to require
products to be on the market before the
general population of manufacturers can
deliver them. As many commenting
parties observe, if manufacturers were
not able to meet our deadline, they
might cease production of mid-range
sets or switch to monitor products that
do not include TV tuners. Such a result
would be disruptive to our goal of
ensuring that consumers are able to
receive DTV signals and could serve to
delay the DTV transition. Accordingly,
we are maintaining the provision of the
current rules requiring that 50 percent
of 25–36″ television receivers include
DTV tuners effective July 1, 2005, and
advancing the date on which 100
percent of such receivers must include
DTV tuners to March 1, 2006.
Final Regulatory Flexibility Analysis
9. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA),1 an Initial Regulatory Flexibility
Analysis (IRFA) was incorporated into
the Notice of Proposed Rulemaking
(NPRM) in ET Docket No. 05–24. The
Commission sought written public
comment on the proposals on the NPRM
concerning modification of the plan for
applying the DTV tuner requirement to
TV receivers with screen sizes 25–36″,
including comment on the IRFA. This
Final Regulatory Flexibility Analysis
(FRFA) conforms to the RFA.2
A. Need for and Objectives of the Rules
10. As described in the NPRM, the
changes to the rules considered in this
proceeding are intended to ensure a
1 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601–
612, has been amended by the Small Business
Regulatory Enforcement Fairness Act of 1996
(SBREFA), Public Law 104–121, Title II, 110 Stat.
857 (1996).
2 See 5 U.S.C. 604.
PO 00000
Frm 00052
Fmt 4700
Sfmt 4700
smooth transition of the nation’s
television system to digital television.
Beginning in 1987, the Commission
undertook to bring the most up-to-date
technology to broadcast television.3
That effort resulted in several
Commission decisions, including those
adopting a digital television (DTV)
standard,4 DTV service rules,5 and a
Table of DTV Allotments.6 The Table of
DTV Allotments provides each existing
television broadcaster with a second
channel on which to operate a DTV
station for a transition period in which
stations will operate both analog and
digital TV service, after which analog
service will cease and one of each
station’s two channels will revert to the
government for use in other services.
The transition deadline established by
Congress is December 31, 2006.
11. Consistent with its efforts to
promote the expeditious completion of
the DTV transition, the Commission
adopted a requirement that all new
television receivers imported or shipped
in interstate commerce after July 1,
2007, include the capability to receive
DTV signals off-the-air. In order to
minimize the impact of the DTV tuner
requirement on both manufacturers and
consumers, the Commission adopted a
phase-in schedule that applies the DTV
tuner requirement first to receivers with
the screens and then to progressively
smaller screen receivers and other TV
receiving devices. The Consumer
Electronics Association and the
Consumer Electronics Retailers
Coalition (CEA–CERC) submitted a
petition for rule making requesting that
the Commission eliminate the portion of
the phase-in schedule requiring that 50
percent of TV receivers with screen
sizes 25–36″ include DTV reception
capability from July 1, 2005, to July 1,
2006, and instead advance the date for
requiring all such receivers to include a
DTV tuner to March 1, 2006, from July
1, 2006. CEA–CERC argued that the 50
percent requirement has proven to be
disruptive to the market in the case of
larger screen receivers. We are issuing
this Report and Order to modify the
portion of the DTV tuner requirement
3 See Notice of Inquiry in MM Docket No. 87–268,
2 FCC Rcd 5125 (1987), 52 FR 34259, September 10,
1987; see also Tentative Decision and Further
Notice of Proposed Rulemaking in MM Docket No.
87–268, 3 FCC Rcd 6520 (1988), 53 FR 38747,
October 3, 1988.
4 See Fourth Report and Order in MM Docket No.
87–268, 11 FCC Rcd 17771 (1996), 62 FR 14006,
March 25, 1997.
5 See Fifth Report and Order in MM Docket No.
87–268, 12 FCC Rcd 12809 (1997), 63 FR 13546,
May 20, 1998.
6 See Sixth Report and Order in MM Docket No.
87–268, 12 FCC Rcd 14588 (1997), 62 FR 2668, July
11, 1997.
E:\FR\FM\06JYR1.SGM
06JYR1
Federal Register / Vol. 70, No. 128 / Wednesday, July 6, 2005 / Rules and Regulations
phase-in plan that applies to receivers
with screen sizes 24″ to 36″.
Specifically, we are amending the rules
to advance the date on which all 24–36″
receivers must include a DTV tuner to
March 1, 2006, from the current date of
July 1, 2006. Maintaining the 50 percent
requirement for the period from July 1,
2005, to February 28, 2005, and
advancing the 100 percent compliance
date for mid-size receivers to March 1,
2006, will ameliorate the concerns of
the consumer electronics manufacturers
and retailers with respect to the 50
percent approach and further our goal of
promoting DTV reception availability.
B. Summary of Significant Issues Raised
by Public Comments in Response to the
IRFA
12. No comments were filed in
response to the IRFA.
C. Description and Estimate of the
Number of Small Entities to Which the
Proposed Rules Will Apply
13. The RFA directs the Commission
to provide a description of and, where
feasible, an estimate of the number of
small entities that will be affected by the
proposed rules.7 The RFA generally
defines the term ‘‘small entity’’ as
having the same meaning as the terms
‘‘small business,’’ ‘‘small organization,’’
and ‘‘small governmental entity.’’.8 In
addition, the term ‘‘small business’’ has
the same meaning as the term ‘‘small
business concern’’ under the Small
Business Act.9 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).10
Electronics Equipment Manufacturers.
Rules adopted in this proceeding will
apply to manufacturers of DTV
receiving equipment and other types of
consumer electronics equipment. The
SBA has developed definitions of small
entity for manufacturers of audio and
video equipment 11 as well as radio and
television broadcasting and wireless
communications equipment.12 These
75
U.S.C. 603(b)(3).
U.S.C. 601(6).
9 5 U.S.C. 601(3) (incorporating by reference the
definition of ‘‘small business concern’’ in the Small
Business Act, 15 U.S.C. 632). Pursuant to 5 U.S.C.
601(3), the statutory definition of a small business
applies ‘‘unless an agency, after consultation with
the Office of Advocacy of the Small Business
Administration and after opportunity for public
comment, establishes one or more definitions of
such term which are appropriate to the activities of
the agency and publishes such definition(s) in the
Federal Register.’’
10 15 U.S.C. 632.
11 13 CFR 121.201 (NAICS Code 334310).
12 13 CFR 121.201 (NAICS Code 334220).
85
VerDate jul<14>2003
16:43 Jul 05, 2005
Jkt 205001
categories both include all such
companies employing 750 or fewer
employees. The Commission has not
developed a definition of small entities
applicable to manufacturers of
electronic equipment used by
consumers, as compared to industrial
use by television licensees and related
businesses. Therefore, we will utilize
the SBA definitions applicable to
manufacturers of audio and visual
equipment and radio and television
broadcasting and wireless
communications equipment, since these
are the two closest NAICS Codes
applicable to the consumer electronics
equipment manufacturing industry.
However, these NAICS categories are
broad and specific figures are not
available as to how many of these
establishments manufacture consumer
equipment. According to the SBA’s
regulations, an audio and visual
equipment manufacturer must have 750
or fewer employees in order to qualify
as a small business concern.13 Census
Bureau data indicates that there are 554
U.S. establishments that manufacture
audio and visual equipment, and that
542 of these establishments have fewer
than 500 employees and would be
classified as small entities.14 The
remaining 12 establishments have 500
or more employees; however, we are
unable to determine how many of those
have fewer than 750 employees and
therefore, also qualify as small entities
under the SBA definition. Under the
SBA’s regulations, a radio and television
broadcasting and wireless
communications equipment
manufacturer must also have 750 or
fewer employees in order to qualify as
a small business concern.15 Census
Bureau data indicates that there are
1,215 U.S. establishments that
manufacture radio and television
broadcasting and wireless
communications equipment, and that
1,150 of these establishments have
fewer than 500 employees and would be
classified as small entities.16 The
CFR 121.201 (NAICS Code 334310).
and Statistics Administration,
Bureau of Census, U.S. Department of Commerce,
1997 Economic Census, Industry Series—
Manufacturing, Audio and Video Equipment
Manufacturing, Table 4 at 9 (1999). The amount of
500 employees was used to estimate the number of
small business firms because the relevant Census
categories stopped at 499 employees and began at
500 employees. No category for 750 employees
existed. Thus, the number is as accurate as it is
possible to calculate with the available information.
15 13 CFR 121.201 (NAICS Code 513220).
16 Economics and Statistics Administration,
Bureau of Census, U.S. Department of Commerce,
1997 Economic Census, Industry Series—
Manufacturing, Radio and Television Broadcasting
and Wireless Communications Equipment
Manufacturing, Table 4 at 9 (1999). The amount of
PO 00000
13 13
14 Economics
Frm 00053
Fmt 4700
Sfmt 4700
38803
remaining 65 establishments have 500
or more employees; however, we are
unable to determine how many of those
have fewer than 750 employees and
therefore, also qualify as small entities
under the SBA definition. We therefore
conclude that there are no more than
542 small manufacturers of audio and
visual electronics equipment and no
more than 1,150 small manufacturers of
radio and television broadcasting and
wireless communications equipment for
consumer/household use.
Computer Manufacturers. The
Commission has not developed a
definition of small entities applicable to
computer manufacturers. Therefore, we
will utilize the SBA definition of
electronic computers manufacturing.
According to SBA regulations, a
computer manufacturer must have 1,000
or fewer employees in order to qualify
as a small entity.17 Census Bureau data
indicates that there are 563 firms that
manufacture electronic computers and
of those, 544 have fewer than 1,000
employees and qualify as small
entities.18 The remaining 19 firms have
1,000 or more employees. We conclude
that there are approximately 544 small
computer manufacturers.
D. Description of Projected Reporting,
Recordkeeping and Other Compliance
Requirements
14. The rule changes adopted in the
Report and Order impose no additional
recordkeeping or recordkeeping
requirements on manufacturers of
television receiving equipment, large or
small. While the modifications adopted
therein may have a small impact on
consumer electronics manufacturers,
any such impact would be similar for
both large and small entities.
E. Steps Taken To Minimize Significant
Impact on Small Entities, and
Significant Alternatives Considered
15. The RFA requires an agency to
describe any significant alternatives that
it has considered in reaching its
proposed approach, which may include
the following four alternatives (among
others): (1) The establishment of
differing compliance or reporting
requirements or timetables that take into
account the resources available to small
500 employees was used to estimate the number of
small business firms because the relevant Census
categories stopped at 499 employees and began at
500 employees. No category for 750 employees
existed. Thus, the number is as accurate as it is
possible to calculate with the available information.
17 13 CFR 121.201 (NAICS Code 334111).
18 Economics and Statistics Administration,
Bureau of Census, U.S. Department of Commerce,
1997 Economic Census, Industry Series—
Manufacturing, Electronic Computer
Manufacturing, Table 4 at 9 (1999).
E:\FR\FM\06JYR1.SGM
06JYR1
38804
Federal Register / Vol. 70, No. 128 / Wednesday, July 6, 2005 / Rules and Regulations
entities; (2) the clarification,
consolidation, or simplification of
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.19
16. The modification of the provisions
for implementing the DTV tuner
requirement in TV receivers with screen
sizes in the 25–36″ mid-size range set
forth herein are intended to ameliorate
certain market difficulties described by
consumer electronics manufacturers and
consumer electronics products retailers
and to expedite the availability of DTV
tuners in new mid-size television
receivers that are offered to consumers.
The revisions adopted preserve the
requirement for DTV tuners in 50
percent of the new mid-size range of
receivers for the period July 1, 2005, to
February 28, 2005, in order to ensure
that such receivers are available as soon
as possible and particularly during the
2005 holiday season and 2006 Super
Bowl season. The consumer electronics
industry has indicated that it prefers the
100 percent requirement to become
effective on March 1, 2006, rather than
the original July 1, 2006, date.
Advancing the date for 100 percent
compliance by mid-size receivers will
ameliorate the challenges of the 50
percent provision for manufacturers and
retailers and will also serve to promote
the availability of DTV tuner equipped
TV sets to consumers.
17. Other approaches considered
included various suggestions by
broadcasters and others to advance the
deadline for DTV tuners in 25–36″ sets
to dates between November 1, 2005, and
January 1, 2005. We rejected the options
to advance the 100 percent requirement
to a date earlier than March 1, 2006, on
the basis that the 5 to 6 month leadtimes available to manufacturers under
those scenarios would be too short for
manufacturers to meet with new
products, especially given the leadtimes associated with obtaining parts
and components from suppliers.
Extending the deadline beyond March 1,
2006, would be inconsistent with the
need to expedite the DTV transition.
Report to Congress
18. The Commission will send a copy
of the Report and Order, including this
FRFA, in a report to Congress pursuant
to the Congressional Review Act.20 In
addition, the Commission will send a
copy of the Report and Order, including
19 5
the FRFA, to the Chief Counsel for
Advocacy of the SBA.21
Ordering Clauses
19. Pursuant to the authority
contained in sections 2(a), 4(i) & (j), 7,
151 and 303 of the Communications Act
of 1934 as amended, 47 U.S.C. 152(a),
154(i) & (j), 151, 157, and 303, this
Report and Order is adopted and the
Commission’s rules are hereby amended
as set forth in Rule Changes, and shall
become effective August 5, 2005.
20. The Petition for Rulemaking
submitted by the Consumer Electronics
Association and the Consumer
Electronics Retailers Association in this
matter on November 5, 2004, is denied
in part and is granted in part as
indicated in the Report and Order.
21. The Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Report and Order, including the
Final Regulatory Flexibility Analysis, to
the Chief Counsel for Advocacy of the
Small Business Administration,22 to
Congress and the General Accounting
Office pursuant to the Congressional
Review Act, see 5 U.S.C. 801(a)(1)(A).
DEPARTMENT OF TRANSPORTATION
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
49 CFR Parts 209, 213, 214, 215, 216,
217, 218, 219, 220, 221, 222, 223, 225,
228, 229, 230, 231, 232, 233, 234, 235,
236, 238, 239, 240, 241, and 244
Rule Changes
For the reasons set forth in the
preamble, the Federal Communications
Commission amends 47 CFR part 15 as
follows:
I
PART 15—RADIO FREQUENCY
DEVICES
1. The authority citation for part 15
continues to read as follows:
I
Authority: 47 U.S.C. 154, 302, 303, 304,
307, and 554A.
2. Section 15.117 is amended by
revising paragraph (i)(1) to read as
follows:
I
§ 15.117
TV broadcast receivers.
*
*
*
*
*
(i) * * *
(1) Responsible parties, as defined in
§ 2.909 of this chapter, are required to
equip new TV broadcast receivers that
are shipped in interstate commerce or
imported from any foreign country into
the United States and for which they are
responsible to comply with the
provisions of this section in accordance
with the following schedule:
21 See
22 See
Jkt 205001
BILLING CODE 6712–01–P
Federal Railroad Administration
U.S.C. 603.
5 U.S.C. 801(a)(1)(A).
16:43 Jul 05, 2005
[FR Doc. 05–13027 Filed 7–5–05; 8:45 am]
List of Subjects in 47 CFR Part 15
Communications equipment, Radio.
20 See
VerDate jul<14>2003
(i) Receivers with screen sizes 36″ and
above—50% of all of a responsible
party’s units must include DTV tuners
effective July 1, 2004; 100% of such
units must include DTV tuners effective
July 1, 2005.
(ii) Receivers with screen sizes 25″ to
less than 36″—50% of all of a
responsible party’s units must include
DTV tuners effective July 1, 2005; 100%
of such units must include DTV tuners
effective March 1, 2006.
(iii) Receivers with screen sizes 13″ to
less than 25″—100% of all such units
must include DTV tuners effective July
1, 2007.
(iv) Other devices (videocassette
recorders (VCRs), digital video disk and
digital versatile disk (DVD) players/
recorders, etc.) that receive television
signals—100% of all such units must
include DTV tuners effective July 1,
2007.
*
*
*
*
*
PO 00000
5 U.S.C. 604(b).
5 U.S.C. 603(a).
Frm 00054
Fmt 4700
Sfmt 4700
[Docket No. FRA–2004–17529; Notice No.
4]
RIN 2130–AB66
Inflation Adjustment of the Ordinary
Maximum Civil Monetary Penalty for a
Violation of a Federal Railroad Safety
Law or Federal Railroad Administration
Safety Regulation
Federal Railroad
Administration (FRA), Department of
Transportation (DOT).
ACTION: Final rule; withdrawal.
AGENCY:
SUMMARY: FRA is withdrawing its final
rule that adjusted from $11,000 to
$15,000 the ordinary maximum civil
penalty that applies when a civil
penalty for a violation of railroad safety
statutes and regulations is assessed
under its authority, due to an error in
the application of the rounding rules
found in the applicable statute. The
ordinary maximum civil penalty will
remain at $11,000.
DATES: The final rule published on June
8, 2005, at 70 FR 33380 is withdrawn in
its entirety as of July 6, 2005.
FOR FURTHER INFORMATION CONTACT:
Carolina Mirabal, Trial Attorney, Office
E:\FR\FM\06JYR1.SGM
06JYR1
Agencies
[Federal Register Volume 70, Number 128 (Wednesday, July 6, 2005)]
[Rules and Regulations]
[Pages 38800-38804]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-13027]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 15
[ET Docket No. 05-24; FCC 05-121]
DTV Tuner Requirements
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This document modifies the schedule by which new broadcast
television receivers with screen sizes 25-36 are required to
include the capability to receive over-the-air digital television (DTV)
broadcast signals. This action was initiated in response to a Petition
for Rulemaking from the Consumer Electronics Association and the
Consumer Electronics Retailers Association (CEA-CERC) requesting that
we eliminate the 50 percent requirement for the 25-36 mid-
size receivers and instead advance the date by which 100 percent of
these receivers would include DTV tuners to March 1, 2006. This action
will serve to minimize any difficulties with the 50 percent provision
at the earliest practicable date and will also serve to promote the
expeditious completion of the transition from analog to digital
broadcast television service.
DATES: Effective August 5, 2005.
FOR FURTHER INFORMATION CONTACT: Alan Stillwell, Office of Engineering
and Technology, (202) 418-2925, e-mail: Alan.Stillwell@fcc.gov, TTY
(202) 418-2989.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order, ET Docket No. 05-24, FCC 05-121, adopted June 9, 2005, and
released June 9, 2005. The full text of this document is available on
the Commission's Internet site at https://www.fcc.gov. It is also
available for inspection and copying during regular business hours in
the FCC Reference Center (Room CY-A257), 445 12th Street, SW.,
Washington, DC 20554. The full text of this document also may be
purchased from the Commission's duplication contractor, Best Copy and
[[Page 38801]]
Printing Inc., Portals II, 445 12th St., SW., Room CY-B402, Washington,
DC 20554; telephone (202) 488-5300; fax (202) 488-5563; e-mail
FCC@BCPIWEB.COM.
Congressional Review Act
The Commission will send a copy of this Report & Order, in a report
to be sent to Congress and the General Accounting Office pursuant to
the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
Summary of the Report and Order
1. In the Report and Order (R&O), the Commission modified the
schedule by which new broadcast television receivers with screen sizes
25-36'' are required to include the capability to receive over-the-air
digital television (DTV) broadcast signals. This provision of the rules
is an element of the Commission's phase-in plan for requiring that all
new broadcast television receivers include DTV reception capability.
The DTV reception requirement, which is also often termed the ``DTV
tuner requirement,'' is being implemented by applying the requirement
first to large screen receivers and then progressively to smaller
screen units and other devices over a period of several years. The
decision maintains the existing plan to require that 50 percent of 25-
36'' receivers that are imported or shipped in interstate commerce
include DTV tuners beginning July 1, 2005, but modifies the date on
which 100 percent of such receivers must include DTV tuners by
advancing that date from July 1, 2006, to March 1, 2006. The action was
initiated in response to a Petition for Rulemaking from the Consumer
Electronics Association and the Consumer Electronics Retailers
Association (CEA-CERC) requesting that we eliminate the 50 percent
requirement for the 25-36'' mid-size receivers and instead advance the
date by which 100 percent of these receivers would include DTV tuners
to March 1, 2006. While we understand CEA-CERC's concern that the 50
percent requirement may have posed some difficulties for manufacturers
and retailers, we nonetheless concluded that maintaining this approach
for the mid-size 25-36'' receivers prior to March 1, 2006, will most
effectively ensure that DTV tuner equipped sets are available to
consumers this year, and especially for the 2005 holiday and 2006 Super
Bowl seasons. In this regard, we continue to believe that it is
essential that DTV reception capability be provided to consumers in new
TV receivers as rapidly as possible in order to promote an expeditious
completion of the transition from analog to digital broadcast
television service. We also concluded that advancing the date by which
all 25-36'' receivers must include DTV reception capability to March 1,
2006, will serve to minimize any difficulties with the 50 percent
provision at the earliest practicable date and will also serve to
expedite the provision of DTV reception capability to consumers.
2. In their petition for rulemaking, CEA-CERC requested that we
eliminate the July 1, 2005, requirement for 50 percent of TV receivers
with screen sizes 25-36'' to include DTV reception capability and
instead advance from July 1, 2006, to March 1, 2006, the date for all
such receivers to include a DTV tuner. CEA-CERC submitted that
manufacturers' and retailers' experience with the 50 percent provision
for 36'' and larger receivers is that the 50 percent aspect of the
phase-in plan is antithetical to the purpose of the DTV tuner
requirement. They stated that, in practice, the 50 percent requirement
has proven to be unduly disruptive in the marketplace in ways
unforeseen and, in fact, threatens to slow, rather than speed, consumer
migration to TV receivers with DTV tuners. They indicated that this is
because the experience with 36'' and larger sets is that consumers
typically choose a lower-priced product with otherwise similar features
except for the DTV tuner rather than a set with a DTV tuner. CEA-CERC
argued that eliminating the 50 percent rule for 25-36'' receivers and
moving up the date for 100 percent compliance by such receivers would
better align the policy behind the DTV tuner rule with market forces
and consumer expectations.
3. In response to the CEA-CERC petition, we issued a Notice of
Proposed Rulemaking (NPRM), 70 FR 13139, March 18, 2005, to consider
adjusting the schedule by which new broadcast television receivers with
screen sizes 25-36'' are required to include the capability to receive
digital television signals. In the NPRM, we requested comment on
whether there is need to revise the implementation schedule of the DTV
tuner requirement for receivers with screen sizes 25-36'' to address
the concerns raised by CEA-CERC and, if so, how that schedule should be
revised to achieve our goal that all new television receivers include
DTV tuning capability by July 1, 2007. We specifically requested
comment on the approach suggested by CEA-CERC whereby the requirement
that 50 percent of receivers with screen sizes 25-36'' incorporate a
DTV tuner in the period from July 1, 2005, to July 1, 2006, would be
eliminated and replaced with a new provision requiring that all
receivers with screen sizes 25-36'' be required to include a DTV tuner
effective March 1, 2006. We also invited alternative approaches for
addressing the market situation described in the CEA-CERC petition and
indicated that we intend to consider the full range of options that are
consistent with our stated goals. However, we also advised commenting
parties that we did not intend to extend the July 1, 2007, date by
which all broadcast television receivers include DTV reception
capability.
4. After review of the record in this proceeding, we conclude that
while the partial production elements of our DTV tuner implementation
plan may have caused some confusion in the market, that approach
remains workable and will best serve to ensure that DTV tuner equipped
receivers in the 25-36'' mid-size range are available to consumers
until the 100 percent DTV tuner requirement goes into effect for these
receivers. We also find that it is in the interests of consumer
electronics manufacturers and retailers and consistent with our goals
as stated above to advance the 100 compliance date for mid-size
receivers from July 1, 2006, to March 1, 2006.
5. With regard to the 50 percent provision, we find that postponing
application of the DTV tuner requirement to the 25-36'' receivers until
March 1, the earliest date on which manufacturers state that they can
meet the 100 percent requirement, would unacceptably delay the general
availability of DTV reception capability in these products. While
eliminating the 50 percent requirement for mid-size receivers until the
100 percent compliance requirement becomes effective might be more
convenient for manufacturers and retailers, such an approach would also
delay the wider dissemination of DTV tuners in products of this size
range. It remains our intent that the implementation schedule aim for
the most rapid introduction of DTV reception capability in this size
range and indeed all new television receivers. Postponing the
requirement for inclusion of DTV tuners in mid-size TV sets would be
inconsistent with our efforts to advance the DTV transition as rapidly
as possible. Our intent is to stem the flow of analog-only products as
soon as possible for, every analog-only TV set sold is a blow to the
DTV transition.
6. Initiating the DTV tuner requirement for mid-size receivers on
March 1, 2006, the date that CEA-CERC
[[Page 38802]]
and manufacturers submit is the earliest feasible time by which
manufacturers could meet the 100 percent compliance requirement, would
undermine our goal of the most rapid introduction of DTV reception
capability. The full eight months delay in which no mid-size TV sets
would be required to include DTV tuners under that approach would miss
the entire holiday and Super Bowl seasons this fall and next winter.
Similarly, postponing the initiation of the 50 percent requirement
until November 1, 2005 as suggested by CEA-CERC in their ex parte
letter would miss the summer and most of the fall season and would also
allow a large number of analog tuners to enter retailers' inventories
for sale just before the holiday season. Moreover, consumers who
purchase new receivers in the coming holiday and Super Bowl seasons
would not likely return to the market again to purchase a new receiver
for several years and so would be without a DTV tuner equipped device
until they purchased a new set or until they obtained a separate set-
top DTV tuner unit.
7. We recognize that there are DTV tuner-equipped mid-size TV
receivers on the market now and that if we were to eliminate the 50
percent requirement in favor of a delayed 100 percent requirement there
would still be DTV tuner equipped sets for consumers to acquire.
Nonetheless, we expect that the quantity of DTV tuner equipped sets
sold under that approach would be significantly lower than that under
the 50 percent approach, given manufacturers' and retailers'
description of the market. We also believe that it would further
consumer awareness if manufacturers and retailers would provide point-
of-sale and other marketing information to consumers and/or clearly
label new television sets to indicate whether they can receive off-the-
air DTV signals or only off-the-air analog signals. We believe that
such efforts would result in more informed consumer choices about
whether to buy DTV tuner equipped sets. We therefore encourage
manufacturers and retailers to clearly label and identify the tuning
capabilities of new TV sets and/or employ other means to disseminate to
consumers information regarding whether or not specific models are able
to receive off-the-air digital television signals.
8. With respect to the 100 percent compliance date, we conclude
that it will ameliorate the concern of the consumer electronics
manufacturers and retailers and further our goal of promoting DTV
reception availability to advance the date on which 100 percent of 25-
36'' receivers will be required to include a DTV tuner to March 1,
2006. Manufacturers have indicated that they will be able to equip 100
percent of new mid-size TV sets with DTV tuners by this date and both
manufacturers and retailers support changing the 100 percent compliance
date as a step to minimize the difficulties posed by the 50 percent
requirement. We do not believe it would be feasible or practicable to
advance the 100 percent requirement to a date earlier than that
suggested by CEA-CERC. We recogniz manufacturers' arguments that the
lead time associated with development of new products, and particularly
the time needed to establish specifications, change manufacturing
lines, and order parts, would not allow the industry generally to meet
a 100 percent compliance requirement before March 1, 2006. It makes
little sense to require products to be on the market before the general
population of manufacturers can deliver them. As many commenting
parties observe, if manufacturers were not able to meet our deadline,
they might cease production of mid-range sets or switch to monitor
products that do not include TV tuners. Such a result would be
disruptive to our goal of ensuring that consumers are able to receive
DTV signals and could serve to delay the DTV transition. Accordingly,
we are maintaining the provision of the current rules requiring that 50
percent of 25-36'' television receivers include DTV tuners effective
July 1, 2005, and advancing the date on which 100 percent of such
receivers must include DTV tuners to March 1, 2006.
Final Regulatory Flexibility Analysis
9. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA),\1\ an Initial Regulatory Flexibility Analysis (IRFA) was
incorporated into the Notice of Proposed Rulemaking (NPRM) in ET Docket
No. 05-24. The Commission sought written public comment on the
proposals on the NPRM concerning modification of the plan for applying
the DTV tuner requirement to TV receivers with screen sizes 25-36'',
including comment on the IRFA. This Final Regulatory Flexibility
Analysis (FRFA) conforms to the RFA.\2\
---------------------------------------------------------------------------
\1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been
amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (SBREFA), Public Law 104-121, Title II, 110 Stat. 857 (1996).
\2\ See 5 U.S.C. 604.
---------------------------------------------------------------------------
A. Need for and Objectives of the Rules
10. As described in the NPRM, the changes to the rules considered
in this proceeding are intended to ensure a smooth transition of the
nation's television system to digital television. Beginning in 1987,
the Commission undertook to bring the most up-to-date technology to
broadcast television.\3\ That effort resulted in several Commission
decisions, including those adopting a digital television (DTV)
standard,\4\ DTV service rules,\5\ and a Table of DTV Allotments.\6\
The Table of DTV Allotments provides each existing television
broadcaster with a second channel on which to operate a DTV station for
a transition period in which stations will operate both analog and
digital TV service, after which analog service will cease and one of
each station's two channels will revert to the government for use in
other services. The transition deadline established by Congress is
December 31, 2006.
---------------------------------------------------------------------------
\3\ See Notice of Inquiry in MM Docket No. 87-268, 2 FCC Rcd
5125 (1987), 52 FR 34259, September 10, 1987; see also Tentative
Decision and Further Notice of Proposed Rulemaking in MM Docket No.
87-268, 3 FCC Rcd 6520 (1988), 53 FR 38747, October 3, 1988.
\4\ See Fourth Report and Order in MM Docket No. 87-268, 11 FCC
Rcd 17771 (1996), 62 FR 14006, March 25, 1997.
\5\ See Fifth Report and Order in MM Docket No. 87-268, 12 FCC
Rcd 12809 (1997), 63 FR 13546, May 20, 1998.
\6\ See Sixth Report and Order in MM Docket No. 87-268, 12 FCC
Rcd 14588 (1997), 62 FR 2668, July 11, 1997.
---------------------------------------------------------------------------
11. Consistent with its efforts to promote the expeditious
completion of the DTV transition, the Commission adopted a requirement
that all new television receivers imported or shipped in interstate
commerce after July 1, 2007, include the capability to receive DTV
signals off-the-air. In order to minimize the impact of the DTV tuner
requirement on both manufacturers and consumers, the Commission adopted
a phase-in schedule that applies the DTV tuner requirement first to
receivers with the screens and then to progressively smaller screen
receivers and other TV receiving devices. The Consumer Electronics
Association and the Consumer Electronics Retailers Coalition (CEA-CERC)
submitted a petition for rule making requesting that the Commission
eliminate the portion of the phase-in schedule requiring that 50
percent of TV receivers with screen sizes 25-36'' include DTV reception
capability from July 1, 2005, to July 1, 2006, and instead advance the
date for requiring all such receivers to include a DTV tuner to March
1, 2006, from July 1, 2006. CEA-CERC argued that the 50 percent
requirement has proven to be disruptive to the market in the case of
larger screen receivers. We are issuing this Report and Order to modify
the portion of the DTV tuner requirement
[[Page 38803]]
phase-in plan that applies to receivers with screen sizes 24'' to 36''.
Specifically, we are amending the rules to advance the date on which
all 24-36'' receivers must include a DTV tuner to March 1, 2006, from
the current date of July 1, 2006. Maintaining the 50 percent
requirement for the period from July 1, 2005, to February 28, 2005, and
advancing the 100 percent compliance date for mid-size receivers to
March 1, 2006, will ameliorate the concerns of the consumer electronics
manufacturers and retailers with respect to the 50 percent approach and
further our goal of promoting DTV reception availability.
B. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA
12. No comments were filed in response to the IRFA.
C. Description and Estimate of the Number of Small Entities to Which
the Proposed Rules Will Apply
13. The RFA directs the Commission to provide a description of and,
where feasible, an estimate of the number of small entities that will
be affected by the proposed rules.\7\ The RFA generally defines the
term ``small entity'' as having the same meaning as the terms ``small
business,'' ``small organization,'' and ``small governmental
entity.''.\8\ In addition, the term ``small business'' has the same
meaning as the term ``small business concern'' under the Small Business
Act.\9\ 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).\10\
---------------------------------------------------------------------------
\7\ 5 U.S.C. 603(b)(3).
\8\ 5 U.S.C. 601(6).
\9\ 5 U.S.C. 601(3) (incorporating by reference the definition
of ``small business concern'' in the Small Business Act, 15 U.S.C.
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a
small business applies ``unless an agency, after consultation with
the Office of Advocacy of the Small Business Administration and
after opportunity for public comment, establishes one or more
definitions of such term which are appropriate to the activities of
the agency and publishes such definition(s) in the Federal
Register.''
\10\ 15 U.S.C. 632.
---------------------------------------------------------------------------
Electronics Equipment Manufacturers. Rules adopted in this
proceeding will apply to manufacturers of DTV receiving equipment and
other types of consumer electronics equipment. The SBA has developed
definitions of small entity for manufacturers of audio and video
equipment \11\ as well as radio and television broadcasting and
wireless communications equipment.\12\ These categories both include
all such companies employing 750 or fewer employees. The Commission has
not developed a definition of small entities applicable to
manufacturers of electronic equipment used by consumers, as compared to
industrial use by television licensees and related businesses.
Therefore, we will utilize the SBA definitions applicable to
manufacturers of audio and visual equipment and radio and television
broadcasting and wireless communications equipment, since these are the
two closest NAICS Codes applicable to the consumer electronics
equipment manufacturing industry. However, these NAICS categories are
broad and specific figures are not available as to how many of these
establishments manufacture consumer equipment. According to the SBA's
regulations, an audio and visual equipment manufacturer must have 750
or fewer employees in order to qualify as a small business concern.\13\
Census Bureau data indicates that there are 554 U.S. establishments
that manufacture audio and visual equipment, and that 542 of these
establishments have fewer than 500 employees and would be classified as
small entities.\14\ The remaining 12 establishments have 500 or more
employees; however, we are unable to determine how many of those have
fewer than 750 employees and therefore, also qualify as small entities
under the SBA definition. Under the SBA's regulations, a radio and
television broadcasting and wireless communications equipment
manufacturer must also have 750 or fewer employees in order to qualify
as a small business concern.\15\ Census Bureau data indicates that
there are 1,215 U.S. establishments that manufacture radio and
television broadcasting and wireless communications equipment, and that
1,150 of these establishments have fewer than 500 employees and would
be classified as small entities.\16\ The remaining 65 establishments
have 500 or more employees; however, we are unable to determine how
many of those have fewer than 750 employees and therefore, also qualify
as small entities under the SBA definition. We therefore conclude that
there are no more than 542 small manufacturers of audio and visual
electronics equipment and no more than 1,150 small manufacturers of
radio and television broadcasting and wireless communications equipment
for consumer/household use.
---------------------------------------------------------------------------
\11\ 13 CFR 121.201 (NAICS Code 334310).
\12\ 13 CFR 121.201 (NAICS Code 334220).
\13\ 13 CFR 121.201 (NAICS Code 334310).
\14\ Economics and Statistics Administration, Bureau of Census,
U.S. Department of Commerce, 1997 Economic Census, Industry Series--
Manufacturing, Audio and Video Equipment Manufacturing, Table 4 at 9
(1999). The amount of 500 employees was used to estimate the number
of small business firms because the relevant Census categories
stopped at 499 employees and began at 500 employees. No category for
750 employees existed. Thus, the number is as accurate as it is
possible to calculate with the available information.
\15\ 13 CFR 121.201 (NAICS Code 513220).
\16\ Economics and Statistics Administration, Bureau of Census,
U.S. Department of Commerce, 1997 Economic Census, Industry Series--
Manufacturing, Radio and Television Broadcasting and Wireless
Communications Equipment Manufacturing, Table 4 at 9 (1999). The
amount of 500 employees was used to estimate the number of small
business firms because the relevant Census categories stopped at 499
employees and began at 500 employees. No category for 750 employees
existed. Thus, the number is as accurate as it is possible to
calculate with the available information.
---------------------------------------------------------------------------
Computer Manufacturers. The Commission has not developed a
definition of small entities applicable to computer manufacturers.
Therefore, we will utilize the SBA definition of electronic computers
manufacturing. According to SBA regulations, a computer manufacturer
must have 1,000 or fewer employees in order to qualify as a small
entity.\17\ Census Bureau data indicates that there are 563 firms that
manufacture electronic computers and of those, 544 have fewer than
1,000 employees and qualify as small entities.\18\ The remaining 19
firms have 1,000 or more employees. We conclude that there are
approximately 544 small computer manufacturers.
---------------------------------------------------------------------------
\17\ 13 CFR 121.201 (NAICS Code 334111).
\18\ Economics and Statistics Administration, Bureau of Census,
U.S. Department of Commerce, 1997 Economic Census, Industry Series--
Manufacturing, Electronic Computer Manufacturing, Table 4 at 9
(1999).
---------------------------------------------------------------------------
D. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
14. The rule changes adopted in the Report and Order impose no
additional recordkeeping or recordkeeping requirements on manufacturers
of television receiving equipment, large or small. While the
modifications adopted therein may have a small impact on consumer
electronics manufacturers, any such impact would be similar for both
large and small entities.
E. Steps Taken To Minimize Significant Impact on Small Entities, and
Significant Alternatives Considered
15. The RFA requires an agency to describe any significant
alternatives that it has considered in reaching its proposed approach,
which may include the following four alternatives (among others): (1)
The establishment of differing compliance or reporting requirements or
timetables that take into account the resources available to small
[[Page 38804]]
entities; (2) the clarification, consolidation, or simplification of
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.\19\
---------------------------------------------------------------------------
\19\ 5 U.S.C. 603.
---------------------------------------------------------------------------
16. The modification of the provisions for implementing the DTV
tuner requirement in TV receivers with screen sizes in the 25-36'' mid-
size range set forth herein are intended to ameliorate certain market
difficulties described by consumer electronics manufacturers and
consumer electronics products retailers and to expedite the
availability of DTV tuners in new mid-size television receivers that
are offered to consumers. The revisions adopted preserve the
requirement for DTV tuners in 50 percent of the new mid-size range of
receivers for the period July 1, 2005, to February 28, 2005, in order
to ensure that such receivers are available as soon as possible and
particularly during the 2005 holiday season and 2006 Super Bowl season.
The consumer electronics industry has indicated that it prefers the 100
percent requirement to become effective on March 1, 2006, rather than
the original July 1, 2006, date. Advancing the date for 100 percent
compliance by mid-size receivers will ameliorate the challenges of the
50 percent provision for manufacturers and retailers and will also
serve to promote the availability of DTV tuner equipped TV sets to
consumers.
17. Other approaches considered included various suggestions by
broadcasters and others to advance the deadline for DTV tuners in 25-
36'' sets to dates between November 1, 2005, and January 1, 2005. We
rejected the options to advance the 100 percent requirement to a date
earlier than March 1, 2006, on the basis that the 5 to 6 month lead-
times available to manufacturers under those scenarios would be too
short for manufacturers to meet with new products, especially given the
lead-times associated with obtaining parts and components from
suppliers. Extending the deadline beyond March 1, 2006, would be
inconsistent with the need to expedite the DTV transition.
Report to Congress
18. The Commission will send a copy of the Report and Order,
including this FRFA, in a report to Congress pursuant to the
Congressional Review Act.\20\ In addition, the Commission will send a
copy of the Report and Order, including the FRFA, to the Chief Counsel
for Advocacy of the SBA.\21\
---------------------------------------------------------------------------
\20\ See 5 U.S.C. 801(a)(1)(A).
\21\ See 5 U.S.C. 604(b).
---------------------------------------------------------------------------
Ordering Clauses
19. Pursuant to the authority contained in sections 2(a), 4(i) &
(j), 7, 151 and 303 of the Communications Act of 1934 as amended, 47
U.S.C. 152(a), 154(i) & (j), 151, 157, and 303, this Report and Order
is adopted and the Commission's rules are hereby amended as set forth
in Rule Changes, and shall become effective August 5, 2005.
20. The Petition for Rulemaking submitted by the Consumer
Electronics Association and the Consumer Electronics Retailers
Association in this matter on November 5, 2004, is denied in part and
is granted in part as indicated in the Report and Order.
21. The Commission's Consumer and Governmental Affairs Bureau,
Reference Information Center, shall send a copy of this Report and
Order, including the Final Regulatory Flexibility Analysis, to the
Chief Counsel for Advocacy of the Small Business Administration,\22\ to
Congress and the General Accounting Office pursuant to the
Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
---------------------------------------------------------------------------
\22\ See 5 U.S.C. 603(a).
---------------------------------------------------------------------------
List of Subjects in 47 CFR Part 15
Communications equipment, Radio.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Rule Changes
0
For the reasons set forth in the preamble, the Federal Communications
Commission amends 47 CFR part 15 as follows:
PART 15--RADIO FREQUENCY DEVICES
0
1. The authority citation for part 15 continues to read as follows:
Authority: 47 U.S.C. 154, 302, 303, 304, 307, and 554A.
0
2. Section 15.117 is amended by revising paragraph (i)(1) to read as
follows:
Sec. 15.117 TV broadcast receivers.
* * * * *
(i) * * *
(1) Responsible parties, as defined in Sec. 2.909 of this chapter,
are required to equip new TV broadcast receivers that are shipped in
interstate commerce or imported from any foreign country into the
United States and for which they are responsible to comply with the
provisions of this section in accordance with the following schedule:
(i) Receivers with screen sizes 36 and above--50% of all
of a responsible party's units must include DTV tuners effective July
1, 2004; 100% of such units must include DTV tuners effective July 1,
2005.
(ii) Receivers with screen sizes 25 to less than
36--50% of all of a responsible party's units must include
DTV tuners effective July 1, 2005; 100% of such units must include DTV
tuners effective March 1, 2006.
(iii) Receivers with screen sizes 13 to less than
25--100% of all such units must include DTV tuners effective
July 1, 2007.
(iv) Other devices (videocassette recorders (VCRs), digital video
disk and digital versatile disk (DVD) players/recorders, etc.) that
receive television signals--100% of all such units must include DTV
tuners effective July 1, 2007.
* * * * *
[FR Doc. 05-13027 Filed 7-5-05; 8:45 am]
BILLING CODE 6712-01-P