Reexamination of Roaming Obligations of Commercial Mobile Radio Service Providers, 56612-56620 [05-19346]
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Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Proposed Rules
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47 CFR Part 20
[WT Docket No. 05–265, WT Docket No. 00–
193; FCC 05–160]
Reexamination of Roaming Obligations
of Commercial Mobile Radio Service
Providers
Federal Communications
Commission.
ACTION: Notice of proposed rulemaking.
AGENCY:
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SUMMARY: In this document, the Federal
Communications Commission (FCC)
initiated a new proceeding to examine
whether its roaming requirements
applicable to these CMRS providers
should be modified, expanded, or
eliminated given the current state of the
CMRS market. In a related
Memorandum Opinion and Order, the
FCC terminated a pending proceeding
without the adoption of rules
concerning roaming requirements
applicable to certain Commercial
Mobile Radio Services (CMRS)
providers because the record in that
proceeding had become stale.
DATES: Comments due on or before
November 28, 2005 and reply comments
are due on or before December 27, 2005.
Written comments on the Paperwork
Reduction Act proposed information
collection requirements must be
submitted by the public, Office of
Management and Budget (OMB), and
other interested parties on or before
November 28, 2005.
ADDRESSES: You may submit comments,
identified by WT Docket No. 05–265, by
any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Federal Communications
Commission’s Web Site: https://
www.fcc.gov/cgb/ecfs/. Follow the
instructions for submitting comments.
• E-mail: Include the docket
number(s) in the subject line of the
message.
• People with Disabilities: Contact
the FCC to request reasonable
accommodations (accessible format
documents, sign language interpreters,
CART, etc.) by e-mail: FCC504@fcc.gov
or phone: (202) 418–0530 or TTY: (202)
418–0432.
For detailed instructions for
submitting comments and additional
information on the rulemaking process,
see the SUPPLEMENTARY INFORMATION
section of this document.
In addition to filing comments with
the Secretary, a copy of any comments
on the Paperwork Reduction Act
information collection requirements
contained herein should be submitted to
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Communications Commission, Room 1–
C804, 445 12th Street, SW., Washington,
DC 20554, or via the Internet to JudithB.Herman@fcc.gov, and to Kristy L.
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Washington, DC 20503, via the Internet
to Kristy_L._LaLonde@omb.eop.gov, or
via fax at 202–395–5167.
FOR FURTHER INFORMATION CONTACT: Eli
Johnson at (202) 418–1395,
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Eli.Johnson@fcc.gov, or Won Kim (202)
418–1368, Won.Kim@fcc.gov, Wireless
Telecommunications Bureau, Spectrum
and Competition Policy Division. For
additional information concerning the
Paperwork Reduction Act information
collection requirements contained in
this document, contact Judith B.
Herman at (202) 418–0214, or via the
Internet at Judith-B.Herman@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Notice of
Proposed Rulemaking, WT Docket No.
05–265, WT Docket No. 00–193,
released August 31, 2005. The full text
of the NPRM is available for public
inspection 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
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445 12th Street, SW., Washington, DC
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Initial Paperwork Reduction Act of
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contain proposed information collection
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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).
Synopsis
1. In the Notice of Proposed Rule
Making (NPRM), the FCC initiated a
proceeding to examine whether its
roaming requirements applicable to
CMRS providers should be modified,
expanded, or eliminated given the
current state of the CMRS market.1 In a
related Memorandum Opinion and
Order (MO&O), the FCC also terminated
an existing proceeding without the
adoption of rules that addressed similar
issues because the record had become
stale.2 The FCC found that the tentative
1 See In the Matter of Reexamination of Roaming
Obligations of Commercial Mobile Radio Service
Providers; Automatic and Manual Roaming
Obligations Pertaining to Commercial Mobile Radio
Services, WT Docket No. 05–265, Memorandum
Opinion and Order and Notice of Proposed
Rulemaking, FCC 05–160 (rel. August 31, 2005)
(NPRM).
2 The terminated Notice of Proposed Rule Making
was published in 65 FR 69891–01 (Nov. 21, 2000).
See In the Matter of Automatic and Manual
Roaming Obligations Pertaining to Commercial
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conclusions and proposed rules
contained in the earlier item no longer
reflect the current CMRS marketplace.
Accordingly, the FCC terminated the
earlier roaming proceeding in WT
Docket No. 00–193.3
2. In the NPRM, the FCC seeks to
develop a record with up-to-date
information on the state of roaming in
today’s CMRS marketplace in order to
determine what regulatory regime is
currently appropriate for roaming
services.4 Accordingly, the NPRM
discusses and seeks comment on issues
related to manual and automatic
roaming, including issues concerning
roaming negotiations, small and rural
carrier concerns, and technical
considerations.
Manual Roaming
3. The NPRM seeks up-to-date
information on the practice of manual
roaming and the continued utility of the
manual roaming rule.5 Specifically, the
FCC seeks comment on how often
subscribers avail themselves of manual
roaming.6 Given the evolution of the
CMRS market and advancements in
CMRS technologies, the NPRM asks, to
what extent has manual roaming fallen
into disuse or been replaced by
automatic roaming? Further, given the
role of manual roaming in today’s
marketplace, the FCC requests comment
regarding whether the manual roaming
rule should be eliminated, either in
combination with the promulgation of
an automatic roaming rule or without
such a rule. Alternatively, should the
manual roaming rule be kept as a
fallback for consumers when automatic
roaming is unavailable? 7 In recent
merger orders, the FCC imposed a
condition prohibiting the merged
company from blocking manual
roaming.8 The FCC asks, therefore, to
what extent is home carrier blocking of
manual roaming a problem? 9 Is a rule
change—as opposed to merger
Mobile Radio Services, WT Docket No. 00–193,
Notice of Proposed Rulemaking, FCC 00–361, 65 FR
69891–01.
3 See NPRM at para. 18.
4 See NPRM at para. 20.
5 Id. at para. 22.
6 Id. at para. 23.
7 Id.
8 See Application of AT&T Wireless Services, Inc.
and Cingular Wireless Corporation, WT Docket No.
04–70, Memorandum Opinion and Order, 19 FCC
Rcd 21522, 21592 para. 182 (2004); Application of
Western Wireless Corporation and ALLTEL
Corporation, WT Docket No. 05–50, Memorandum
Opinion and Order, FCC 05–138 at para. 108 (rel.
July 19, 2005); Applications of Nextel
Communications, Inc. and Sprint Corporation, WT
Docket No. 05–63, Memorandum Opinion and
Order, FCC 05–148 at para. 127 (rel. Aug. 8, 2005).
9 See NPRM at para. 23.
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conditions—an appropriate way to
address this issue?
4. Further, the FCC seeks comment on
whether any manual roaming
requirement that it retains or adopts
should be subject to a sunset provision
and, if so, when such a sunset should
occur.10 The FCC also asked whether
any sunset of the manual roaming rule
should be contingent upon adoption of
an automatic roaming rule.
Automatic Roaming
5. The NPRM seeks up-to-date
information on automatic roaming that
would enable the FCC to fully consider
the question and reach an informed
decision about whether to adopt an
automatic roaming rule.11 The NPRM
invites interested parties to discuss in
detail whether, in the absence of an
automatic roaming requirement, there
have been any CMRS industry changes
and trends that have positively or
negatively affected the availability of
roaming to consumers. The FCC is
interested in the effects that the existing
roaming environment has on U.S.
consumers.12 For example, what effect
has the existing roaming environment
had on the availability, quality and
price of services to consumers? Is there
any disparate impact on consumers
using services in rural areas? The FCC
seeks comment on the availability of
automatic roaming to consumers in the
absence of an automatic roaming
requirement. Are there instances in
which providers refused to enter into
automatic roaming agreements with
other providers with compatible
systems, or where they have
discriminated with respect to the prices
or other terms on which they make
roaming agreements available to
different carriers? The FCC also seeks
comment on whether CMRS industry
mergers could increase the incentive for
large, nationwide carriers to deny
automatic roaming agreements to their
local or regional competitors. The
NPRM seeks comment regarding
evidence of discriminatory roaming
practices on an industry-wide basis as
well as on a market-specific basis.
Commenters are invited to discuss the
current availability of automatic
roaming services in various regions with
specific data, including the quality of
services and the impact of roaming
services on ‘‘dead spots’’ in many less
populated areas.
6. The FCC requests that commenters
address both the potential benefits of
various regulatory options and the
10 Id.
at para. 24.
at para. 25.
12 Id. at para. 27.
11 Id.
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potential costs.13 For example, would an
automatic roaming rule create
disincentives to the growth of facilitiesbased competition, or to the continued
development of carriers with
nationwide footprints? Would such a
rule impede the development of new
and improved roaming features? Are
there new and improved roaming
services that have developed over the
past few years in the absence of an
automatic roaming requirement? In
addition, how would constraints
imposed by any particular roaming rule
affect the competitiveness of particular
carriers? Would a nondiscrimination
rule or any other automatic roaming rule
thwart CMRS carriers’ ability to
compete vigorously on the basis of the
particular roaming services provided, or
otherwise impede carriers’ ability to
differentiate their roaming services?
Would the costs of a rule impact small
carriers disproportionately, such that
some form of exemption for those
carriers would be appropriate? The
NPRM invites commenters to provide
economic analysis and data regarding
the potential benefits and costs of
imposing an automatic roaming rule.
7. The NPRM also seeks comment on
any administrative costs that would
arise from a non-discrimination
requirement or other automatic roaming
rule, were such a rule to be
implemented.14 With respect to a
potential non-discrimination
requirement in particular, the FCC seeks
comment on any burdens that would
arise from the need to determine
whether carriers seeking roaming
agreements are ‘‘similarly situated.’’
8. The FCC also seeks comment on
how to assess technical compatibility in
an automatic roaming environment.15
Under the existing manual roaming rule,
the subscriber seeking to roam must first
possess a handset that is technically
capable of accessing the roamed-on
system. Similarly, the FCC believes that
if an automatic roaming requirement
were imposed, the carrier seeking to
enable its subscribers to roam on
another system should have the burden
of developing and implementing any
technology that is necessary to achieve
that result. In addition, the FCC stated
that any automatic roaming rule should
be sufficiently flexible to permit a
carrier to change its system for
legitimate business reasons (e.g.,
increasing capacity, spectrum
efficiency, fraud control, or deployment
of enhanced features) without any
obligation to make its system accessible
at para. 28.
at para. 29.
15 Id. at para. 30.
to roamers. At the same time it may be
necessary within such a framework to
adopt certain safeguards to ensure that
a carrier takes reasonable actions to
facilitate another carrier’s efforts to
achieve the capability to access its
system. The FCC asked commenters to
address whether and to what extent a
carrier should be obligated to facilitate
another carrier’s efforts to access its
system and invited comment on the
possible design of a rule to balance
these considerations, as well as on any
other possible approaches.
9. In addition, the FCC seeks
comment on whether carriers currently
use any method to inform their
subscribers about when they are
roaming on another carrier’s network
and on whether the subscriber may
incur additional charges as a result of
such roaming.16 The FCC invites
comment on industry practices relating
to consumer education about roaming.
Further, the FCC seeks comment on any
other issue that a commenter believes is
important for the Commission to
consider as it determines whether it
would be in the public interest to
impose an automatic roaming
requirement on CMRS providers,
including, for example, any concerns
regarding subscriber privacy or carriers’
control over proprietary information
and whether any automatic roaming
requirement that we adopt in this
proceeding should be subject to a sunset
provision and, if so, when such a sunset
should occur.
Roaming Agreements
10. In the past, the FCC has suggested
that one possible automatic roaming
rule could require, as a condition of
license, that covered providers that
enter into roaming agreements with
other such providers make like
agreements available to similarly
situated providers, where technically
compatible handsets are being used,
under non-discriminatory rates, terms,
and conditions.17 Such a rule could
prevent established carriers from
entering into favorable agreements with
selected providers while unreasonably
denying such agreements to similarly
situated carriers. The FCC seeks
comment on whether an antidiscrimination approach to automatic
roaming is appropriate in the current
marketplace, or whether any other
approaches should be considered.18
11. To the extent that a CMRS
provider engages in unreasonable and
discriminatory behavior by refusing to
13 Id.
16 Id.
14 Id.
17 Id.
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at para. 31.
at para. 33.
19 Id.
at para. 34.
at para. 35.
21 Id. at para. 36.
20 Id.
18 Id.
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enter an automatic roaming agreement,
the FCC also seeks comment on the
adequacy of remedies under existing
law, such as the means permitted under
sections 201, 202, 208, 251, and 332 of
the Act.19 The FCC seeks general
comment on whether the avenues of
complaint and redress afforded by these
sections provide sufficient and
appropriate means of ensuring the
development of automatic roaming
services in a competitive CMRS market,
or whether an automatic roaming
requirement is necessary in order to
serve the public interest.
12. Assuming that adoption of
additional protections against
discrimination is needed, the FCC seeks
comment on whether an antidiscrimination approach to roaming
should be examined on a nationwide or
on a market-specific basis.20 Should any
automatic roaming rule require a carrier
to enter an automatic roaming
arrangement on a nondiscriminatory
basis with a facilities-based competitor
in the same market (‘‘in-market’’
roaming)? For instance, do such
agreements diminish carriers’ incentives
for building out their networks? The
NPRM seeks comment on how an
exception that permits carriers to deny
roaming agreements to ‘‘in-market’’
competitors could be administered,
given the different geographic scope of
cellular, broadband PCS, and SMR
licenses.
13. Similarly, the FCC seeks comment
on whether providers should be
permitted to offer roaming agreements
to affiliates on different terms and
conditions than to non-affiliates, or
whether, instead, agreements favorable
to affiliates constitute unreasonable,
discriminatory behavior.21 The FCC
seeks comment on whether it would
serve the public interest to require
carriers to make roaming service
available to other carriers in one-way
agreements under the same terms and
conditions as under reciprocal
agreements. The FCC also requests
comment on whether a carrier should be
able to offer a lower rate to a
geographically proximate carrier. In
addition, the FCC requests comment as
to what extent, if any, an automatic
roaming rule should encompass
requirements specifically affecting
resellers, and on the costs and benefits
of any such requirements. The NPRM
invites commenters to provide
economic analysis and data supporting
their positions.
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14. Finally, in the FCC proceeding
addressing the Sprint-Nextel merger,
SouthernLINC Wireless contended that
it has been unable to negotiate a
satisfactory roaming agreement with
Nextel because the agreement restricts
its subscribers to basic interconnected
voice roaming and denies them access
to push-to-talk, dispatch, or data
roaming services.22 The FCC seeks
comment on whether such denial of
access to roaming services harms
competition or consumers and, if so,
how any automatic roaming rule should
be crafted to address the issue.23 For
example, should an automatic roaming
rule require carriers to permit roaming
access to all technical features of their
systems, and/or require carriers to make
the same features accessible to all of
their roaming partners on a nondiscriminatory basis? The NPRM invites
commenters to provide economic and
technical analysis and data supporting
their positions, including information
on how common practices such as those
alleged by SouthernLINC are within the
industry.
Small and Rural Carrier Concerns
15. In various Commission
proceedings, small and rural wireless
service providers have asserted that
CMRS industry mergers have
significantly reduced their nationwide
roaming options.24 The FCC seeks
comment on these concerns raised by
small and rural carriers.25 The NPRM
invites commenters to submit economic
analysis and data regarding evidence of
discriminatory or non-discriminatory
roaming practices on an industry-wide
basis, and the impact of such practices
on consumers. If roaming rates are
declining among carriers, is this due to
a more robust CMRS market or, as small
and rural carriers claim, from the
dwindling number of nationwide
carriers favoring one another in roaming
agreements to the exclusion of other
carriers? The FCC seeks specific
evidence of wireless providers denying
roaming agreements to other providers
in a manner that harms consumers. The
FCC also seeks comment on and
evidence of whether large, nationwide
carriers are preferring one another over
other carriers in roaming agreements,
and whether such a preference is a
violation of Section 202 of the
Communications Act.
16. In addition, the FCC seeks
comment on whether large, nationwide
22 See SouthernLINC Wireless Reply Comments,
WT Docket No. 05–63, at 5–6.
23 See NPRM at para. 37.
24 Id. at paras. 38–40.
25 Id. at para. 41.
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carriers are engaging in the practice of
barring their subscribers’ access to
networks operated by other carriers.26 If
so, does this type of practice violate the
spirit of the Commission’s rule requiring
carriers to provide roaming access by
preventing subscribers from utilizing
such a service? The NPRM invites
comment on the assertion by small and
rural carriers that large carriers are using
their market power to develop one-sided
roaming agreements, at terms more
favorable to themselves. Should the FCC
require nondiscriminatory, rather than
one-sided, automatic roaming
arrangements? In this regard, should
large or nationwide carriers be required
to make their networks available to all
roaming partners on the same terms and
conditions as they offer to their ‘‘mostfavored’’ roaming partners. Finally, the
FCC seeks comment on whether large,
nationwide carriers control ‘‘bottleneck’’
facilities that impact the ability of
customers to roam onto or off of small
and rural wireless networks.
17. The FCC also seeks comment on
whether the concerns raised by small
and rural carriers should be examined
on a regional or local basis.27 The NPRM
notes that RTG has proposed ‘‘an
automatic roaming mandate’’ that would
only be applicable to small and ‘‘rural’’
markets where roaming partner options
are at a minimum.28 RTG has also
suggested in ex parte presentation that
the Commission consider a ‘‘Tier IV’’
category of CMRS providers that would
consist solely of CMRS carriers with
100,000 customers or less.29 Under this
proposal, Tier IV providers would be
entitled to automatic roaming in rural
markets with large, nationwide carriers
at reasonable symmetrical rates as a
‘‘check’’ against the abuse of market
power by large carriers where they
dominate the market.30 The FCC seeks
comment on RTG’s proposal.31 Should
the FCC consider an automatic roaming
requirement specifically targeted to
rural markets? If so, how should we
define ‘‘rural’’ for this purpose? In the
Rural Report and Order, the FCC
established a baseline definition of
‘‘rural area’’ as ‘‘those counties (or
equivalent) with a population density of
100 persons per square mile or less,
based upon the most recently available
Census data * * *.’’ 32 The FCC seeks
26 Id.
at para. 42.
at para. 43.
28 RTG, WT Docket No. 00–193, Ex Parte, filed
June 28, 2005, at 1.
29 Id.
30 Id.
31 See NPRM at para. 43.
32 See Facilitating the Provisions of SpectrumBased Services to Rural Areas and Promoting
Opportunities for Rural Telephone Companies to
27 Id.
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comment on whether the definition in
the Rural Report and Order or any other
definition would be appropriate for any
automatic roaming obligations
contemplated in this proceeding.
Technical Considerations
18. Roaming on Enhanced Digital
Networks. Another consideration in
determining the need for and design of
any automatic roaming requirement is
the recent development by carriers of
enhanced digital networks.33 If the FCC
were to apply some form of automatic
roaming requirement to 2G systems, it
seeks comment on whether it should
also apply to upgraded 2.5G or 3G
systems as well.34 In addition, the FCC
seeks comment on what impact an
automatic roaming requirement would
have on the incentive of carriers to
invest in such upgrades.35 The FCC also
seeks comment on whether a carrier that
has upgraded its system should be
required to enter into roaming
agreements only with other carriers that
have similarly upgraded their systems,
or whether, alternatively, the
Commission should require a carrier
with 2.5 and 3G capabilities to enter
into automatic roaming agreements with
all or some subset of carriers (e.g., rural
carriers) that employ the same digital
technology (e.g., GSM or CDMA), even
if the other carriers have not upgraded
their systems.
19. The FCC also seeks comment on
the effect that automatic roaming would
have on the capacity of 2.5 and 3G
networks and the ability of carriers to
offer full access to their own
customers.36 The Commission stated it
would be concerned if requiring a
carrier to offer roaming service on its
enhanced network to the customers of
other carriers resulted in the carrier
facing capacity constraints that
adversely affect its own customers. The
FCC therefore asks whether a carrier
should have the right to limit access to
its network by roamers, and what
parameters should be considered as
justification for such limits. The NPRM
invites commenters to suggest specific
standards for determining when the
requirement should or should not apply.
20. Roaming with Multi-Mode
Handsets. Another technical
consideration in the context of roaming
Provide Spectrum-Based Services, WT Docket No.
02–381, Report and Order and Further Notice of
Proposed Rulemaking, FCC 04–166, 19 FCC Rcd
19078, 19087 at para. 11 (2004), 69 FR 75144–01
(Dec. 15, 2004), 69 FR 75174–01 (December 15,
2004).
33 See NPRM at para. 44.
34 Id. at para. 44.
35 Id.
36 Id. at para. 46.
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is that, in order for roaming on digital
networks to be successful, a customer
must have a handset that employs the
same digital standard (e.g., GSM or
CDMA) as the carrier on whose network
the customer is roaming.37 However, if,
in the future, handsets become available
that employ multiple digital
technologies or software-defined radio
capabilities, this may reduce or
eliminate technical impediments to the
subscribers of any carrier roaming on
any other carrier’s network. The FCC,
therefore, seeks comment as to whether
and how soon such technology
developments may occur, and if so,
what effect the availability of multitechnology handsets will have on
carriers’ roaming options (e.g., if multitechnology handsets were available,
should we require carriers using CDMA
technologies to enter into roaming
agreements with GSM carriers)? 38
21. Roaming on Analog Networks. In
2002, the Commission established
February 18, 2008 as the sunset date for
the requirement that cellular carriers
provide analog service.39 In light of the
pending sunset of the analog
requirement, the FCC seeks comment on
whether it is necessary to extend any
automatic roaming obligation that the
Commission might adopt to analog
networks. The FCC seeks comment on
the extent to which analog systems are
used in roaming today and whether
there is a need to adopt automatic
roaming for analog.
22. Also, in the past the FCC has
considered the possible effect of mergers
on the roaming market for those
wireless telephony consumers who rely
on analog service.40 The FCC seeks
comment on the extent to which
roaming options will be affected once
the analog requirement no longer
exists.41 This information is relevant to
better assess the state of the CMRS
market and whether analog sunset will
affect the market conditions, in the near
future, in a manner that would justify
adoption of an automatic roaming rule
for digital networks. The NPRM requests
that parties comment on this change and
37 Id.
at para. 47.
38 Id.
39 Id.
at para. 48.
at para. 49.
41 For example, a small cellular GSM carrier
might now enter into a roaming agreement with a
nationwide cellular CDMA carrier operating in its
area because both provide analog service. However,
when the analog requirement terminates, the
nationwide carrier would only be able to enter into
a roaming agreement with a small CDMA carrier in
the area—if one exists—and the GSM carrier would
only be able to have a roaming agreement with a
nationwide GSM carrier—if one exists in the area.
40 Id.
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other technical changes and their
possible effects on the roaming markets.
Ex Parte Rules
23. This is a permit-but-disclose
notice and comment rulemaking
proceeding. Ex parte presentations are
permitted, except during the Sunshine
Agenda period, provided they are
disclosed pursuant to the Commission’s
Rules. (See generally 47 CFR 1.1202,
1.1203, 1.1206.)
Comment Period and Procedures
24. Pursuant to sections 1.415 and
1.419 of the Commission’s rules, 47 CFR
1.415, 1.419, interested parties may file
comments and reply comments on or
before the dates indicated on the first
page of this document. 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 (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 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
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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.
People with Disabilities: To request
materials in accessible formats for
people with disabilities (braille, large
print, electronic files, audio format),
send an e-mail to fcc504@fcc.gov or call
the Consumer & Governmental Affairs
Bureau at (202) 418–0530 (voice), (202)
418–0432 (tty).
Initial Regulatory Flexibility Act
Analysis
25. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA),42 the Commission has prepared
this present Initial Regulatory
Flexibility Analysis (IRFA) of the
possible significant economic impact on
a substantial number of small entities by
the policies and rules proposed in 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 in
paragraph 53 of the item, and they must
have a separate and distinct heading
designating them as responses to the
IRFA. The Commission will send a copy
of the NPRM, including this IRFA, to
the Chief Counsel for Advocacy of the
Small Business Administration (SBA),
in accordance with the RFA.43 In
addition, the NPRM and IRFA (or
summaries thereof) will be published in
the Federal Register.44
42 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601–
612, has been amended by the Contract With
America Advancement Act of 1996, Pub. L. No.
1045–121, 110 Stat. 847 (1996) (CWAAA). Title II
of the CWAAA is the Small Business Regulatory
Enforcement Fairness Act of 1996 (SBREFA).
43 See 5 U.S.C. 603(a).
44 Id.
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Need for and Objectives of the Proposed
Rules
26. In the Memorandum Opinion and
Order (MO&O) and NPRM, the
Commission terminates the open
proceeding relating to the automatic and
manual roaming obligations of
Commercial Mobile Radio Services
(CMRS) providers in WT Docket No. 00–
193, and initiates a new proceeding to
examine whether its current rules
regarding roaming requirements
applicable to CMRS providers should be
modified given the current state of the
CMRS market. In the MO&O portion of
the item, the Commission terminates its
previous consideration of roaming
issues in WT Docket No. 00–193,
primarily on the basis that the
comments filed and the matters at issue
therein are now stale due to the passage
of time and other regulatory and
industry changes that have occurred
since its commencement. As a result,
the Commission decides to terminate
the proceeding without the adoption of
rules. The Commission also decides to
initiate a NPRM in a new proceeding to
examine CMRS roaming in a manner
that takes into account current
technological and market conditions.
The Commission’s decision will allow it
to develop a record with up-to-date
information regarding the state of
today’s CMRS marketplace in an effort
to determine whether there is a need for
a regulatory regime for roaming services.
27. Specifically, in the NPRM, the
Commission seeks to establish a record
on the current state of manual roaming
and whether there is a continuing need
for a manual roaming rule. The
Commission also seeks comment on
whether carriers should be required to
enter into agreements to allow
automatic roaming on their networks
and, if so, how such a rule should be
designed, to whom should it apply, and
for what period of time. Furthermore,
the Commission requests comment on
whether national carriers are negotiating
roaming agreements with small or rural
carriers in an anti-competitive manner
or are simply avoiding their networks
altogether and, if so, whether the
Commission should establish an
automatic roaming rule that applies to a
specific market or type of carrier and for
what period of time. Finally, the
Commission seeks to establish a record
on whether digital network and handset
technology has advanced enough that
there are no longer technical limitations
affecting the likely provision of
roaming.
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Legal Basis
28. The potential actions on which
comment is sought in this NPRM would
be authorized under sections 1, 4(i),
201(b), 251(a), 253, 303(r), and
332(c)(1)(B) of the Communications Act
of 1934, as amended, 47 U.S.C. 151,
154(i), 201(b), 251(a), 253, 303(r), and
332(c)(1)(B).
Description and Estimate of the Small
Entities Subject to the Rules
29. The RFA requires that an initial
regulatory flexibility analysis be
prepared for notice-and-comment
rulemaking proceedings, unless the
agency certifies that ‘‘the rule will not,
if promulgated, have a significant
economic impact on a substantial
number of small entities.’’ 45 The RFA
generally defines ‘‘small entity’’ as
having the same meaning as the terms
‘‘small business,’’ ‘‘small organization,’’
and ‘‘small governmental
jurisdiction.’’ 46 In addition, the term
‘‘small business’’ has the same meaning
as the term ‘‘small business concern’’
under the Small Business Act.47 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).48
30. To assist the Commission in its
analysis, commenters are requested to
provide information regarding which
CMRS entities would be affected by the
regulations on which the Commission
seeks comment in this NPRM. In
particular, we seek estimates of how
many small entities might be affected.
31. The possible sunset of the existing
‘‘manual’’ roaming rule, if adopted,
would eliminate the requirement that
covered cellular, broadband PCS and
SMR carriers make service available to
individual users upon request, so long
as the roamer’s handset is technically
capable of accessing their services.
Sunsetting of this rule would be
expected to reduce the existing
regulatory burden, if any, on small
businesses that must comply with the
requirements of the ‘‘manual’’ roaming
rule.
45 5
U.S.C. 605(b).
U.S.C. 601(6).
47 5 U.S.C. 601(3) (incorporating by reference the
definition of ‘‘small business concern’’ in 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.’’
48 Small Business Act, 15 U.S.C. 632.
46 5
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56617
32. The ‘‘automatic’’ roaming
regulations on which the Commission
seeks comment, if adopted, would apply
to providers of cellular, broadband PCS,
and SMR services that offer real-time,
two-way switched voice or data service
that is interconnected with the public
switched network and utilizes an innetwork switching facility that enables
the provider to reuse frequencies and
accomplish seamless hand-offs of
subscriber calls.
33. Estimate for Cellular Licensees.
The SBA has developed a small
business size standard for small
businesses in the category ‘‘Cellular and
Other Wireless Telecommunications.’’ 49
Under that SBA category, a business is
small if it has 1,500 or fewer
employees.50 According to the Bureau
of the Census, only twelve firms out of
a total of 1,238 cellular and other
wireless telecommunications firms
operating during 1997 had 1,000 or
more employees.51 Therefore, even if all
12 of these firms were cellular
telephone companies, nearly all cellular
carriers are small businesses under the
SBA’s definition.
34. In addition, we can assess data
provided annually to the Commission
by Telecommunications Relay Service
(TRS) carriers. The TRS data
compilation, published in the
Commission’s Trends in Telephone
Service, groups together cellular,
personal communications services, and
specialized mobile radio telephony
carriers into a single category called
‘‘Wireless Telephony.’’ As noted above,
under the pertinent SBA small business
size standard, a wireless business is
small if it has 1,500 or fewer
employees.52 According to Trends in
Telephone Service data, 447 carriers
have reported that they provide
Wireless Telephony.53 Of that total, an
estimated 245 are small providers,
under the SBA size standard. Thus, we
can estimate that the majority of such
businesses are small.
35. Additionally, any rules adopted
pursuant to this rulemaking will apply
to cellular licensees only if they offer
49 13 CFR 121.201, North American Industry
Classification System (NAICS) code 517212.
50 Id.
51 U.S. Census Bureau, 1997 Economic Census,
Information—Subject Series, Establishment and
Firm Size, Table 5 (Employment Size of Firms
Subject to Federal Income Tax), NAICS code
517212 (2002). The Census Bureau will be issuing
2002 Economic Census data relating to
telecommunications entities in late 2004.
52 13 CFR 121.201, NAICS code 517212.
53 FCC, Wireline Competition Bureau, Industry
Analysis and Technology Division, ‘‘Trends in
Telephone Service’’ at Table 5.3, page 5–5 (May
2004). This source uses data that are current as of
October 22, 2003.
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real-time, two-way switched voice or
data service that is interconnected with
the public switched network and that
utilizes an in-network switching facility
that enables the provider to reuse
frequencies and accomplish seamless
hand-offs of subscriber calls. Although
the Commission does not have
definitive information, we estimate that
most or all small business cellular
licensees offer services meeting this
description.
36. Estimate for Broadband PCS
Licensees. The broadband PCS spectrum
is divided into six frequency blocks
designated A through F, and the
Commission has held auctions for each
block. The Commission has created a
small business size standard for Blocks
C and F as an entity that has average
gross revenues of less than $40 million
in the three previous calendar years.54
For Block F, an additional small
business size standard 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.55 These small business
size standards, in the context of
broadband PCS auctions, have been
approved by the SBA.56 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.57 On
March 23, 1999, the Commission
reauctioned 155 C, D, E, and F Block
licenses; there were 113 small business
winning bidders.58
37. Any rule modifications that will
be made pursuant to this proceeding
will apply to broadband PCS licensees
only if they offer real-time, two-way
54 See Amendment of Parts 20 and 24 of the
Commission’s Rules—Broadband PCS Competitive
Bidding and the Commercial Mobile Radio Service
Spectrum Cap, WT Docket No. 96–59, FCC 96–278,
Report and Order, 11 FCC Rcd 7824, 7850–7852
paras. 57–60 (1996), 61 FR 33859 (July 1, 1996); see
also 47 CFR 24.720(b).
55 See Amendment of Parts 20 and 24 of the
Commission’s Rules—Broadband PCS Competitive
Bidding and the Commercial Mobile Radio Service
Spectrum Cap, Report and Order, 11 FCC Rcd 7824,
7852 para. 60.
56 See Letter to Amy Zoslov, Chief, Auctions and
Industry Analysis Division, Wireless
Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez,
Administrator, Small Business Administration,
dated December 2, 1998.
57 FCC News, ‘‘Broadband PCS, D, E and F Block
Auction Closes,’’ No. 71744 (rel. January 14, 1997).
58 See ‘‘C, D, E, and F Block Broadband PCS
Auction Closes,’’ Public Notice, 14 FCC Rcd 6688
(WTB 1999).
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switched voice or data service that is
interconnected with the public switched
network and that utilizes an in-network
switching facility that enables the
provider to reuse frequencies and
accomplish seamless hand-offs of
subscriber calls. Although the
Commission does not have definitive
information, we estimate that most or all
small business broadband PCS licensees
offer services meeting this description.
38. Estimate for SMR Licensees. The
Commission awards ‘‘small entity’’
bidding credits in auctions for 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.59 The Commission awards ‘‘very
small entity’’ bidding credits to firms
that had revenues of no more than $3
million in each of the three previous
calendar years.60 The Commission has
held auctions for geographic area
licenses in the 800 MHz and 900 MHz
bands. The 900 MHz SMR auction began
on December 5, 1995, and closed on
April 15, 1996. Sixty bidders claiming
that they qualified as small businesses
under the $15 million size standard won
263 geographic area licenses in the 900
MHz SMR band. The 800 MHz SMR
auction for the upper 200 channels
began on October 28, 1997, and was
completed on December 8, 1997. Ten
bidders claiming that they qualified as
small businesses under the $15 million
size standard won 38 geographic area
licenses for the upper 200 channels in
the 800 MHz SMR band.61 A second
auction for the 800 MHz band was held
on January 10, 2002 and closed on
January 17, 2002 and included 23 BEA
licenses. One bidder claiming small
business status won five licenses.62
39. The auction of the 1,050 800 MHz
SMR geographic area licenses for the
General Category channels began on
August 16, 2000, and was completed on
September 1, 2000. Eleven bidders won
108 geographic area licenses for the
General Category channels in the 800
MHz SMR band qualified as small
businesses under the $15 million size
standard. In an auction completed on
December 5, 2000, a total of 2,800
Economic Area licenses in the lower 80
channels of the 800 MHz SMR service
were sold. Of the 22 winning bidders,
19 claimed ‘‘small business’’ status and
59 47
CFR 90.814(b)(1).
60 Id.
61 See ‘‘Correction to Public Notice DA 96–586
‘FCC Announces Winning Bidders in the Auction
of 1020 Licenses to Provide 900 MHz SMR in Major
Trading Areas,’ ’’ Public Notice, 18 FCC Rcd 18367
(WTB 1996).
62 See ‘‘Multi-Radio Service Auction Closes,’’
Public Notice, 17 FCC Rcd 1446 (WTB 2002).
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won 129 licenses. Thus, combining all
three auctions, 40 winning bidders for
geographic licenses in the 800 MHz
SMR band claimed status as small
businesses.
40. In addition, there are numerous
incumbent site-by-site SMR licensees
and licensees with extended
implementation authorizations in the
800 and 900 MHz bands. We do not
know how many firms provide 800 MHz
or 900 MHz geographic area SMR
pursuant to extended implementation
authorizations, nor how many of these
providers have annual revenues of no
more than $15 million.63 One firm has
over $15 million in revenues. We
assume, for purposes of this analysis,
that all of the remaining existing
extended implementation
authorizations are held by small
entities, as that small business size
standard is established by the SBA.
41. Additionally, any rules adopted
pursuant to this rulemaking will apply
to SMR licensees only if they offer realtime, two-way switched voice or data
service that is interconnected with the
public switched network and that
utilizes an in-network switching facility
that enables the provider to reuse
frequencies and accomplish seamless
hand-offs of subscriber calls. Although
the Commission does not have
definitive information, we estimate that
many small business SMR licensees do
not offer services meeting this
description. Nonetheless, in the absence
of definitive information, we assume
that all of the Commission’s SMR
licensees that are small businesses may
be subject to any rules that may be
adopted in this proceeding.
Reporting, Recordkeeping, and Other
Compliance Requirements
42. The Commission anticipates that
any rules that may be adopted pursuant
to this Notice will impose at most only
limited reporting or recordkeeping
requirements. The only compliance
costs likely to be incurred are
administrative costs to ensure that an
entity’s practices are in compliance with
the rule. The only compliance
requirement of any possible new rules is
that licensees subject to any automatic
roaming requirement (i.e., cellular
licenses, broadband PCS licensees, and
geographic area 800 MHz and 900 MHz
SMR licensees that offer real-time, twoway, interconnected switched voice and
data service) will need to provide nondiscriminatory access to their wireless
63 These incumbent entities, which were not
subject to auctions, may also be assessed under the
SBA’s generic small business size standard for this
category which is 1,500 or few employees.
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systems via automatic roaming once
they reach an agreement with any
carrier to permit automatic roaming. As
noted above in this IRFA and in the text
of the NPRM, the Commission seeks
comment on the potential costs of
implementing an automatic roaming
requirement in this context, including
such potential costs on small business.64
Steps Taken To Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
43. 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
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.65
44. As noted, the possible sunset of
the manual roaming rule, if adopted,
would be expected to reduce any
existing economic impact on small
business. Therefore, the only possible
negative economic impacts that might
arise from this NPRM are those what
would be associated with an
‘‘automatic’’ roaming rule.
45. However, as discussed in the
NPRM, small and rural wireless service
providers have requested that the
Commission adopt an automatic
roaming rule in some form. Small and
rural service providers assert that CMRS
industry mergers have significantly
reduced their nationwide roaming
options. With a reduced number of
nationwide roaming partners available,
small and rural carriers are concerned
that the remaining nationwide carriers
will be able to use increased market
power to adversely affect roaming
negotiations in the future. These carriers
contend that the large nationwide
service providers are able to exercise
market power through an advantageous
bargaining position that affects not just
the ability of small and rural carriers to
enter into roaming agreements, but the
terms of such agreements. Small and
rural carriers also claim that numerous
incompatible technologies further
reduce their bargaining power.
46. Additionally, small and rural
carriers assert that the amount of
64 See
65 5
NPRM at paras. 28, 38–43.
U.S.C. 603(c).
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roaming traffic they exchange with other
carriers has been significantly reduced
as the large carriers enter into roaming
agreements with other larger carriers
and avoid roaming on smaller carriers’
networks. These small carriers believe
such behavior is indicative of a larger
industry trend where the larger carriers
have begun to favor each other to the
exclusion of smaller competitors,
ignoring high cost rural areas. These
carriers state that a substantial portion
of their revenue comes from roaming
revenue and the loss of such revenue
makes it difficult for them to remain
viable. They assert that favorable deals
between large carriers eliminate a vital
source of revenue for small and rural
carriers. Furthermore, small carriers
contend that the large carriers’ practice
of negotiating favorable roaming deals
with one another constitutes
unreasonable discrimination in
violation of section 202 of the
Communications Act.
47. Small and rural carriers also assert
that with industry consolidation, large
carriers behave in an anti-competitive
manner with respect to roaming. They
contend that consolidation has allowed
large, nationwide CMRS carriers to use
their increased market power to demand
asymmetrical roaming rates from small,
rural carriers. In certain cases, they
assert, rural carriers must pay over five
times as much to allow their customers
to roam on nationwide carrier networks
as the nationwide carriers pay for their
customers to roam on rural networks.
They argue that these asymmetrical
roaming rates harm rural consumers and
prevent small and rural carriers from
offering their rural subscribers viable
nationwide service plans that would
allow rural subscribers to roam on
nationwide carriers’ networks.
48. As a result of these assertions, the
Commission seeks comment in the
NPRM on the concerns raised by small
and rural carriers. The Commission asks
commenters to submit economic
analysis and data regarding evidence of
discriminatory or non-discriminatory
roaming practices on an industry-wide
basis, and the impact of such practices
on consumers. The Commission
requests information on whether
roaming rates are declining among
carriers, and, if so, whether this is due
to a more robust CMRS market or, as
small and rural carriers claim, from the
dwindling number of nationwide
carriers favoring one another in roaming
agreements to the exclusion of other
carriers. The Commission seeks specific
evidence of wireless providers denying
roaming agreements to other providers
in a manner that harms the providers or
consumers. The NPRM also seeks
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56619
comment on and evidence of whether
large, nationwide carriers are preferring
one another over other carriers in
roaming agreements, and whether such
a preference is a violation of section 202
of the Communications Act.
49. In addition, the Commission seeks
comment on whether large, nationwide
carriers are engaging in the practice of
barring their subscribers’ access to
networks operated by other carriers. If
so, the Commission asks, does this type
of practice violate the spirit of its rule
requiring carriers to provide roaming
access by preventing subscribers from
utilizing such a service? The
Commission seeks comment on the
assertion by small and rural carriers that
large carriers are using their market
power to develop one-sided roaming
agreements, at terms more favorable to
themselves. The NPRM asks whether
the Commission should require
nondiscriminatory, rather than onesided, automatic roaming arrangements.
In this regard, the NPRM asks whether
large or nationwide carriers should be
required to make their networks
available to all roaming partners on the
same terms and conditions as they offer
to their ‘‘most-favored’’ roaming
partners. Moreover, the Commission
seeks comment on whether large,
nationwide carriers control ‘‘bottleneck’’
facilities that impact the ability of
customers to roam onto or off of small
and rural wireless networks. Finally, the
Commission also seeks comment on
whether the concerns raised by small
and rural carriers should be examined
on a regional or local basis.
50. The Commission will draw on the
information gained from comments filed
in response to the NPRM when
considering whether an automatic
roaming rule should be promulgated,
and if so, how it can best be drafted to
minimize any costs placed on small
businesses. For instance, the
Commission asks whether the
alternative of an exemption tailored for
small business would be appropriate
given the possible costs of an automatic
roaming rule.66
Federal Rules That May Duplicate,
Overlap, or Conflict With the Proposed
Rules
51. None.
Ordering Clauses
52. Pursuant to sections 1, 4(i), 201(b),
251(a), 253, 303(r), and 332(c)(1)(B) of
the Communications Act of 1934, as
amended, 47 U.S.C. 151, 154(i), 201(b),
251(a), 253, 303(r), and 332(c)(1)(B), and
sections 1.411 and 1.412 of the
66 See
E:\FR\FM\28SEP1.SGM
NPRM at para. 28.
28SEP1
56620
Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Proposed Rules
Commission’s rules, 47 CFR 1.411 and
1.412, the Memorandum Opinion &
Order and Notice of Proposed
Rulemaking is adopted.
53. Pursuant to sections 4(i), 201(b),
251(a), 253, 303(r) and 332(c)(1)(B) of
the Communications Act of 1934, as
amended, 47 U.S.C. 154(i), 251(a), 253,
303(r) and 332(c)(1)(B), and sections
1.411 and 1.412 of the Commission’s
rules, 47 CFR 1.411 and 1.412, the
automatic and manual roaming
rulemaking proceeding in WT Docket
No. 00–193 is terminated.
54. The Petition for Commission
Action filed by the Rural
Telecommunications Group, Inc. on
November 1, 2004 is granted, to the
extent described in the Notice of
Proposed Rulemaking.
55. Notice is given of the proposed
regulatory changes described in this
Notice of Proposed Rulemaking, and
comment is sought on these proposals.
56. 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. 05–19346 Filed 9–27–05; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 23
[IB Docket No. 05–216; FCC 05–130]
Elimination of Part 23 of the
Commission’s Rules and Spectrum
Usage by Satellite Network Earth
Stations and Space Stations
Federal Communications
Commission.
ACTION: Notice of proposed rulemaking.
AGENCY:
SUMMARY: The Federal Communications
Commission (FCC) proposed to
eliminate part 23 of the Commission’s
rules, governing International Fixed
Public Radiocommunication Services
(IFPRS). We instead propose to regulate
IFPRS services pursuant to part 101,
which includes rules applicable to other
fixed services. This should simplify the
Commission’s rules and eliminate
necessary burdens on IFPRS licenses.
DATES: Comments are due on or before
October 28, 2005 and reply comments
are due on or before November 14, 2005.
VerDate Aug<31>2005
15:26 Sep 27, 2005
Jkt 205001
You may submit comment,
identified by [docket number and/or
rulemaking number], by any of the
following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Federal Communications
Commission’s Web Site: https://
www.fcc.gov/cgb/ecfs. Follow the
instructions for submitting comments.
• People with Disabilities: Contact
the FCC to request reasonable
accommodations (accessible format
documents, sign language interpreters,
CART, etc.) by e-mail: FCC504@fcc.gov
or phone 202–418–0530 or TTY: 202–
418–0432.
For detail instructions for submitting
comments and additional information
on the rulemaking process, see the
SUPPLEMENTARY INFORMATION section of
this document.
FOR FURTHER INFORMATION CONTACT:
Steven Spaeth (202) 418–1539, Satellite
Division, International Bureau, Federal
Communications Commission,
Washington, DC 20554. For additional
information concerning the information
collection(s) contained in this
document, contact Judith B. Herman at
202–418–0214, or via the Internet at
Judith-B.Herman@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Notice of
Proposed Rulemaking (NPRM) in IB
Docket No. 05–216, adopted June 20,
2005 and released on June 24, 2005. The
full text of the Notice of Proposed
Rulemaking is available for public
inspection and copying during regular
business hours at 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., Portals II,
445 12th Street, SW., Room CY–B402,
Washington, DC 20554, telephone 202–
488–5300, facsimile 202–488–5563, or
via e-mail FCC@BCPIWEB.com.
The Commission, as part of its
continuing effort to reduce paperwork
burdens, invites the general public and
the Office of Management and Budget
(OMB) to comment on the information
collection requirements contained in
this document, as required by the
Paperwork Reduction Act of 1995,
Public Law 104–13. Public and agency
comments are due November 28, 2005.
Comments should address; (a) Whether
the proposed collection of information
is necessary for the proper performance
of the functions of the Commission,
including whether the information shall
have practical utility; (b) the accuracy of
ADDRESSES:
PO 00000
Frm 00022
Fmt 4702
Sfmt 4702
the Commission’s burden estimates; (c)
ways to enhance the quality, utility, and
clarity of the information collected; and
(d) ways to minimize the burden of the
collection of information on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
In addition, pursuant to the Small
Business Paperwork Relief Act of 2002,
Public Law 107–198, see 44 U.S.C.
3506(c)(4), we seek specific comment on
how we might ‘‘further reduce the
information collection burden for small
business concerns with fewer than 25
employees.’’
Summary of Notice of Proposed
Rulemaking
A. Elimination of Part 23
1. At this time, we initiate a new
proceeding to propose eliminating part
23 completely and applying the
requirements of part 101 of the
Commission’s rules to IFPRS services.
Part 101 establishes procedures for
many terrestrial fixed services other
than IFPRS. The Commission created
part 101 in 1996, to replace parts 21 and
94 of the Commission’s rules.
Eliminating part 23 of the Commission’s
rules and including IFPRS services in
the part 101 framework might serve the
same purposes. In addition, eliminating
distinctions in regulation between
international and domestic fixed public
radio services would be consistent with
the Commission’s elimination of such
distinctions in fixed satellite service
regulations.
2. Specifically, we proposed allowing
future IFPRS licensees to apply for a
license pursuant to the rules in part 1,
subpart F, ‘‘Wireless
Telecommunications Services
Applications and Proceedings.’’ In
addition, we invite comments on
revising § 101.147 of the Commission’s
rules to require any future IFPRS
licenses to operate in the 3700–4200
MHz and the 10,700–11,700 MHz bands.
These bands are available for fixed
microwave services, and are currently
shared with IFPRS. The 2110–2130 MHz
and 2160–2180 MHz bands are also
currently assigned to fixed microwave
services and shared with IFPRS, but we
proposed eliminating the assignment of
these bands to IFPRS in part 101 of the
Commissions’ rules because these bands
are in the process of a transition to a
reassignment to emerging technology
(ET). Together with these revisions to
part 101 of the Commission’s rules, we
also propose revising the Table of
Frequency of Allocation to eliminate
reference to part 23 in Column 6 and to
E:\FR\FM\28SEP1.SGM
28SEP1
Agencies
[Federal Register Volume 70, Number 187 (Wednesday, September 28, 2005)]
[Proposed Rules]
[Pages 56612-56620]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-19346]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 20
[WT Docket No. 05-265, WT Docket No. 00-193; FCC 05-160]
Reexamination of Roaming Obligations of Commercial Mobile Radio
Service Providers
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission (FCC)
initiated a new proceeding to examine whether its roaming requirements
applicable to these CMRS providers should be modified, expanded, or
eliminated given the current state of the CMRS market. In a related
Memorandum Opinion and Order, the FCC terminated a pending proceeding
without the adoption of rules concerning roaming requirements
applicable to certain Commercial Mobile Radio Services (CMRS) providers
because the record in that proceeding had become stale.
DATES: Comments due on or before November 28, 2005 and reply comments
are due on or before December 27, 2005. Written comments on the
Paperwork Reduction Act proposed information collection requirements
must be submitted by the public, Office of Management and Budget (OMB),
and other interested parties on or before November 28, 2005.
ADDRESSES: You may submit comments, identified by WT Docket No. 05-265,
by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web Site: https://
www.fcc.gov/cgb/ecfs/. Follow the instructions for submitting comments.
E-mail: Include the docket number(s) in the subject line
of the message.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by e-mail: FCC504@fcc.gov or phone: (202)
418-0530 or TTY: (202) 418-0432.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
In addition to filing comments with the Secretary, a copy of any
comments on the Paperwork Reduction Act information collection
requirements contained herein should be submitted to Judith B. Herman,
Federal Communications Commission, Room 1-C804, 445 12th Street, SW.,
Washington, DC 20554, or via the Internet to Judith-B.Herman@fcc.gov,
and to Kristy L. LaLonde, OMB Desk Officer, Room 10234 NEOB, 725 17th
Street, NW., Washington, DC 20503, via the Internet to Kristy--L.--
LaLonde@omb.eop.gov, or via fax at 202-395-5167.
FOR FURTHER INFORMATION CONTACT: Eli Johnson at (202) 418-1395,
[[Page 56613]]
Eli.Johnson@fcc.gov, or Won Kim (202) 418-1368, Won.Kim@fcc.gov,
Wireless Telecommunications Bureau, Spectrum and Competition Policy
Division. For additional information concerning the Paperwork Reduction
Act information collection requirements contained in this document,
contact Judith B. Herman at (202) 418-0214, or via the Internet at
Judith-B.Herman@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Proposed Rulemaking, WT Docket No. 05-265, WT Docket No. 00-193,
released August 31, 2005. The full text of the NPRM is available for
public inspection 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 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.
Initial Paperwork Reduction Act of 1995 Analysis: 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).
Synopsis
1. In the Notice of Proposed Rule Making (NPRM), the FCC initiated
a proceeding to examine whether its roaming requirements applicable to
CMRS providers should be modified, expanded, or eliminated given the
current state of the CMRS market.\1\ In a related Memorandum Opinion
and Order (MO&O), the FCC also terminated an existing proceeding
without the adoption of rules that addressed similar issues because the
record had become stale.\2\ The FCC found that the tentative
conclusions and proposed rules contained in the earlier item no longer
reflect the current CMRS marketplace. Accordingly, the FCC terminated
the earlier roaming proceeding in WT Docket No. 00-193.\3\
---------------------------------------------------------------------------
\1\ See In the Matter of Reexamination of Roaming Obligations of
Commercial Mobile Radio Service Providers; Automatic and Manual
Roaming Obligations Pertaining to Commercial Mobile Radio Services,
WT Docket No. 05-265, Memorandum Opinion and Order and Notice of
Proposed Rulemaking, FCC 05-160 (rel. August 31, 2005) (NPRM).
\2\ The terminated Notice of Proposed Rule Making was published
in 65 FR 69891-01 (Nov. 21, 2000). See In the Matter of Automatic
and Manual Roaming Obligations Pertaining to Commercial Mobile Radio
Services, WT Docket No. 00-193, Notice of Proposed Rulemaking, FCC
00-361, 65 FR 69891-01.
\3\ See NPRM at para. 18.
---------------------------------------------------------------------------
2. In the NPRM, the FCC seeks to develop a record with up-to-date
information on the state of roaming in today's CMRS marketplace in
order to determine what regulatory regime is currently appropriate for
roaming services.\4\ Accordingly, the NPRM discusses and seeks comment
on issues related to manual and automatic roaming, including issues
concerning roaming negotiations, small and rural carrier concerns, and
technical considerations.
---------------------------------------------------------------------------
\4\ See NPRM at para. 20.
---------------------------------------------------------------------------
Manual Roaming
3. The NPRM seeks up-to-date information on the practice of manual
roaming and the continued utility of the manual roaming rule.\5\
Specifically, the FCC seeks comment on how often subscribers avail
themselves of manual roaming.\6\ Given the evolution of the CMRS market
and advancements in CMRS technologies, the NPRM asks, to what extent
has manual roaming fallen into disuse or been replaced by automatic
roaming? Further, given the role of manual roaming in today's
marketplace, the FCC requests comment regarding whether the manual
roaming rule should be eliminated, either in combination with the
promulgation of an automatic roaming rule or without such a rule.
Alternatively, should the manual roaming rule be kept as a fallback for
consumers when automatic roaming is unavailable? \7\ In recent merger
orders, the FCC imposed a condition prohibiting the merged company from
blocking manual roaming.\8\ The FCC asks, therefore, to what extent is
home carrier blocking of manual roaming a problem? \9\ Is a rule
change--as opposed to merger conditions--an appropriate way to address
this issue?
---------------------------------------------------------------------------
\5\ Id. at para. 22.
\6\ Id. at para. 23.
\7\ Id.
\8\ See Application of AT&T Wireless Services, Inc. and Cingular
Wireless Corporation, WT Docket No. 04-70, Memorandum Opinion and
Order, 19 FCC Rcd 21522, 21592 para. 182 (2004); Application of
Western Wireless Corporation and ALLTEL Corporation, WT Docket No.
05-50, Memorandum Opinion and Order, FCC 05-138 at para. 108 (rel.
July 19, 2005); Applications of Nextel Communications, Inc. and
Sprint Corporation, WT Docket No. 05-63, Memorandum Opinion and
Order, FCC 05-148 at para. 127 (rel. Aug. 8, 2005).
\9\ See NPRM at para. 23.
---------------------------------------------------------------------------
4. Further, the FCC seeks comment on whether any manual roaming
requirement that it retains or adopts should be subject to a sunset
provision and, if so, when such a sunset should occur.\10\ The FCC also
asked whether any sunset of the manual roaming rule should be
contingent upon adoption of an automatic roaming rule.
---------------------------------------------------------------------------
\10\ Id. at para. 24.
---------------------------------------------------------------------------
Automatic Roaming
5. The NPRM seeks up-to-date information on automatic roaming that
would enable the FCC to fully consider the question and reach an
informed decision about whether to adopt an automatic roaming rule.\11\
The NPRM invites interested parties to discuss in detail whether, in
the absence of an automatic roaming requirement, there have been any
CMRS industry changes and trends that have positively or negatively
affected the availability of roaming to consumers. The FCC is
interested in the effects that the existing roaming environment has on
U.S. consumers.\12\ For example, what effect has the existing roaming
environment had on the availability, quality and price of services to
consumers? Is there any disparate impact on consumers using services in
rural areas? The FCC seeks comment on the availability of automatic
roaming to consumers in the absence of an automatic roaming
requirement. Are there instances in which providers refused to enter
into automatic roaming agreements with other providers with compatible
systems, or where they have discriminated with respect to the prices or
other terms on which they make roaming agreements available to
different carriers? The FCC also seeks comment on whether CMRS industry
mergers could increase the incentive for large, nationwide carriers to
deny automatic roaming agreements to their local or regional
competitors. The NPRM seeks comment regarding evidence of
discriminatory roaming practices on an industry-wide basis as well as
on a market-specific basis. Commenters are invited to discuss the
current availability of automatic roaming services in various regions
with specific data, including the quality of services and the impact of
roaming services on ``dead spots'' in many less populated areas.
---------------------------------------------------------------------------
\11\ Id. at para. 25.
\12\ Id. at para. 27.
---------------------------------------------------------------------------
6. The FCC requests that commenters address both the potential
benefits of various regulatory options and the
[[Page 56614]]
potential costs.\13\ For example, would an automatic roaming rule
create disincentives to the growth of facilities-based competition, or
to the continued development of carriers with nationwide footprints?
Would such a rule impede the development of new and improved roaming
features? Are there new and improved roaming services that have
developed over the past few years in the absence of an automatic
roaming requirement? In addition, how would constraints imposed by any
particular roaming rule affect the competitiveness of particular
carriers? Would a nondiscrimination rule or any other automatic roaming
rule thwart CMRS carriers' ability to compete vigorously on the basis
of the particular roaming services provided, or otherwise impede
carriers' ability to differentiate their roaming services? Would the
costs of a rule impact small carriers disproportionately, such that
some form of exemption for those carriers would be appropriate? The
NPRM invites commenters to provide economic analysis and data regarding
the potential benefits and costs of imposing an automatic roaming rule.
---------------------------------------------------------------------------
\13\ Id. at para. 28.
---------------------------------------------------------------------------
7. The NPRM also seeks comment on any administrative costs that
would arise from a non-discrimination requirement or other automatic
roaming rule, were such a rule to be implemented.\14\ With respect to a
potential non-discrimination requirement in particular, the FCC seeks
comment on any burdens that would arise from the need to determine
whether carriers seeking roaming agreements are ``similarly situated.''
---------------------------------------------------------------------------
\14\ Id. at para. 29.
---------------------------------------------------------------------------
8. The FCC also seeks comment on how to assess technical
compatibility in an automatic roaming environment.\15\ Under the
existing manual roaming rule, the subscriber seeking to roam must first
possess a handset that is technically capable of accessing the roamed-
on system. Similarly, the FCC believes that if an automatic roaming
requirement were imposed, the carrier seeking to enable its subscribers
to roam on another system should have the burden of developing and
implementing any technology that is necessary to achieve that result.
In addition, the FCC stated that any automatic roaming rule should be
sufficiently flexible to permit a carrier to change its system for
legitimate business reasons (e.g., increasing capacity, spectrum
efficiency, fraud control, or deployment of enhanced features) without
any obligation to make its system accessible to roamers. At the same
time it may be necessary within such a framework to adopt certain
safeguards to ensure that a carrier takes reasonable actions to
facilitate another carrier's efforts to achieve the capability to
access its system. The FCC asked commenters to address whether and to
what extent a carrier should be obligated to facilitate another
carrier's efforts to access its system and invited comment on the
possible design of a rule to balance these considerations, as well as
on any other possible approaches.
---------------------------------------------------------------------------
\15\ Id. at para. 30.
---------------------------------------------------------------------------
9. In addition, the FCC seeks comment on whether carriers currently
use any method to inform their subscribers about when they are roaming
on another carrier's network and on whether the subscriber may incur
additional charges as a result of such roaming.\16\ The FCC invites
comment on industry practices relating to consumer education about
roaming. Further, the FCC seeks comment on any other issue that a
commenter believes is important for the Commission to consider as it
determines whether it would be in the public interest to impose an
automatic roaming requirement on CMRS providers, including, for
example, any concerns regarding subscriber privacy or carriers' control
over proprietary information and whether any automatic roaming
requirement that we adopt in this proceeding should be subject to a
sunset provision and, if so, when such a sunset should occur.
---------------------------------------------------------------------------
\16\ Id. at para. 31.
---------------------------------------------------------------------------
Roaming Agreements
10. In the past, the FCC has suggested that one possible automatic
roaming rule could require, as a condition of license, that covered
providers that enter into roaming agreements with other such providers
make like agreements available to similarly situated providers, where
technically compatible handsets are being used, under non-
discriminatory rates, terms, and conditions.\17\ Such a rule could
prevent established carriers from entering into favorable agreements
with selected providers while unreasonably denying such agreements to
similarly situated carriers. The FCC seeks comment on whether an anti-
discrimination approach to automatic roaming is appropriate in the
current marketplace, or whether any other approaches should be
considered.\18\
---------------------------------------------------------------------------
\17\ Id. at para. 33.
\18\ Id.
---------------------------------------------------------------------------
11. To the extent that a CMRS provider engages in unreasonable and
discriminatory behavior by refusing to enter an automatic roaming
agreement, the FCC also seeks comment on the adequacy of remedies under
existing law, such as the means permitted under sections 201, 202, 208,
251, and 332 of the Act.\19\ The FCC seeks general comment on whether
the avenues of complaint and redress afforded by these sections provide
sufficient and appropriate means of ensuring the development of
automatic roaming services in a competitive CMRS market, or whether an
automatic roaming requirement is necessary in order to serve the public
interest.
---------------------------------------------------------------------------
\19\ Id. at para. 34.
---------------------------------------------------------------------------
12. Assuming that adoption of additional protections against
discrimination is needed, the FCC seeks comment on whether an anti-
discrimination approach to roaming should be examined on a nationwide
or on a market-specific basis.\20\ Should any automatic roaming rule
require a carrier to enter an automatic roaming arrangement on a
nondiscriminatory basis with a facilities-based competitor in the same
market (``in-market'' roaming)? For instance, do such agreements
diminish carriers' incentives for building out their networks? The NPRM
seeks comment on how an exception that permits carriers to deny roaming
agreements to ``in-market'' competitors could be administered, given
the different geographic scope of cellular, broadband PCS, and SMR
licenses.
---------------------------------------------------------------------------
\20\ Id. at para. 35.
---------------------------------------------------------------------------
13. Similarly, the FCC seeks comment on whether providers should be
permitted to offer roaming agreements to affiliates on different terms
and conditions than to non-affiliates, or whether, instead, agreements
favorable to affiliates constitute unreasonable, discriminatory
behavior.\21\ The FCC seeks comment on whether it would serve the
public interest to require carriers to make roaming service available
to other carriers in one-way agreements under the same terms and
conditions as under reciprocal agreements. The FCC also requests
comment on whether a carrier should be able to offer a lower rate to a
geographically proximate carrier. In addition, the FCC requests comment
as to what extent, if any, an automatic roaming rule should encompass
requirements specifically affecting resellers, and on the costs and
benefits of any such requirements. The NPRM invites commenters to
provide economic analysis and data supporting their positions.
---------------------------------------------------------------------------
\21\ Id. at para. 36.
---------------------------------------------------------------------------
[[Page 56615]]
14. Finally, in the FCC proceeding addressing the Sprint-Nextel
merger, SouthernLINC Wireless contended that it has been unable to
negotiate a satisfactory roaming agreement with Nextel because the
agreement restricts its subscribers to basic interconnected voice
roaming and denies them access to push-to-talk, dispatch, or data
roaming services.\22\ The FCC seeks comment on whether such denial of
access to roaming services harms competition or consumers and, if so,
how any automatic roaming rule should be crafted to address the
issue.\23\ For example, should an automatic roaming rule require
carriers to permit roaming access to all technical features of their
systems, and/or require carriers to make the same features accessible
to all of their roaming partners on a non-discriminatory basis? The
NPRM invites commenters to provide economic and technical analysis and
data supporting their positions, including information on how common
practices such as those alleged by SouthernLINC are within the
industry.
---------------------------------------------------------------------------
\22\ See SouthernLINC Wireless Reply Comments, WT Docket No. 05-
63, at 5-6.
\23\ See NPRM at para. 37.
---------------------------------------------------------------------------
Small and Rural Carrier Concerns
15. In various Commission proceedings, small and rural wireless
service providers have asserted that CMRS industry mergers have
significantly reduced their nationwide roaming options.\24\ The FCC
seeks comment on these concerns raised by small and rural carriers.\25\
The NPRM invites commenters to submit economic analysis and data
regarding evidence of discriminatory or non-discriminatory roaming
practices on an industry-wide basis, and the impact of such practices
on consumers. If roaming rates are declining among carriers, is this
due to a more robust CMRS market or, as small and rural carriers claim,
from the dwindling number of nationwide carriers favoring one another
in roaming agreements to the exclusion of other carriers? The FCC seeks
specific evidence of wireless providers denying roaming agreements to
other providers in a manner that harms consumers. The FCC also seeks
comment on and evidence of whether large, nationwide carriers are
preferring one another over other carriers in roaming agreements, and
whether such a preference is a violation of Section 202 of the
Communications Act.
---------------------------------------------------------------------------
\24\ Id. at paras. 38-40.
\25\ Id. at para. 41.
---------------------------------------------------------------------------
16. In addition, the FCC seeks comment on whether large, nationwide
carriers are engaging in the practice of barring their subscribers'
access to networks operated by other carriers.\26\ If so, does this
type of practice violate the spirit of the Commission's rule requiring
carriers to provide roaming access by preventing subscribers from
utilizing such a service? The NPRM invites comment on the assertion by
small and rural carriers that large carriers are using their market
power to develop one-sided roaming agreements, at terms more favorable
to themselves. Should the FCC require nondiscriminatory, rather than
one-sided, automatic roaming arrangements? In this regard, should large
or nationwide carriers be required to make their networks available to
all roaming partners on the same terms and conditions as they offer to
their ``most-favored'' roaming partners. Finally, the FCC seeks comment
on whether large, nationwide carriers control ``bottleneck'' facilities
that impact the ability of customers to roam onto or off of small and
rural wireless networks.
---------------------------------------------------------------------------
\26\ Id. at para. 42.
---------------------------------------------------------------------------
17. The FCC also seeks comment on whether the concerns raised by
small and rural carriers should be examined on a regional or local
basis.\27\ The NPRM notes that RTG has proposed ``an automatic roaming
mandate'' that would only be applicable to small and ``rural'' markets
where roaming partner options are at a minimum.\28\ RTG has also
suggested in ex parte presentation that the Commission consider a
``Tier IV'' category of CMRS providers that would consist solely of
CMRS carriers with 100,000 customers or less.\29\ Under this proposal,
Tier IV providers would be entitled to automatic roaming in rural
markets with large, nationwide carriers at reasonable symmetrical rates
as a ``check'' against the abuse of market power by large carriers
where they dominate the market.\30\ The FCC seeks comment on RTG's
proposal.\31\ Should the FCC consider an automatic roaming requirement
specifically targeted to rural markets? If so, how should we define
``rural'' for this purpose? In the Rural Report and Order, the FCC
established a baseline definition of ``rural area'' as ``those counties
(or equivalent) with a population density of 100 persons per square
mile or less, based upon the most recently available Census data * *
*.'' \32\ The FCC seeks comment on whether the definition in the Rural
Report and Order or any other definition would be appropriate for any
automatic roaming obligations contemplated in this proceeding.
---------------------------------------------------------------------------
\27\ Id. at para. 43.
\28\ RTG, WT Docket No. 00-193, Ex Parte, filed June 28, 2005,
at 1.
\29\ Id.
\30\ Id.
\31\ See NPRM at para. 43.
\32\ See Facilitating the Provisions of Spectrum-Based Services
to Rural Areas and Promoting Opportunities for Rural Telephone
Companies to Provide Spectrum-Based Services, WT Docket No. 02-381,
Report and Order and Further Notice of Proposed Rulemaking, FCC 04-
166, 19 FCC Rcd 19078, 19087 at para. 11 (2004), 69 FR 75144-01
(Dec. 15, 2004), 69 FR 75174-01 (December 15, 2004).
---------------------------------------------------------------------------
Technical Considerations
18. Roaming on Enhanced Digital Networks. Another consideration in
determining the need for and design of any automatic roaming
requirement is the recent development by carriers of enhanced digital
networks.\33\ If the FCC were to apply some form of automatic roaming
requirement to 2G systems, it seeks comment on whether it should also
apply to upgraded 2.5G or 3G systems as well.\34\ In addition, the FCC
seeks comment on what impact an automatic roaming requirement would
have on the incentive of carriers to invest in such upgrades.\35\ The
FCC also seeks comment on whether a carrier that has upgraded its
system should be required to enter into roaming agreements only with
other carriers that have similarly upgraded their systems, or whether,
alternatively, the Commission should require a carrier with 2.5 and 3G
capabilities to enter into automatic roaming agreements with all or
some subset of carriers (e.g., rural carriers) that employ the same
digital technology (e.g., GSM or CDMA), even if the other carriers have
not upgraded their systems.
---------------------------------------------------------------------------
\33\ See NPRM at para. 44.
\34\ Id. at para. 44.
\35\ Id.
---------------------------------------------------------------------------
19. The FCC also seeks comment on the effect that automatic roaming
would have on the capacity of 2.5 and 3G networks and the ability of
carriers to offer full access to their own customers.\36\ The
Commission stated it would be concerned if requiring a carrier to offer
roaming service on its enhanced network to the customers of other
carriers resulted in the carrier facing capacity constraints that
adversely affect its own customers. The FCC therefore asks whether a
carrier should have the right to limit access to its network by
roamers, and what parameters should be considered as justification for
such limits. The NPRM invites commenters to suggest specific standards
for determining when the requirement should or should not apply.
---------------------------------------------------------------------------
\36\ Id. at para. 46.
---------------------------------------------------------------------------
20. Roaming with Multi-Mode Handsets. Another technical
consideration in the context of roaming
[[Page 56616]]
is that, in order for roaming on digital networks to be successful, a
customer must have a handset that employs the same digital standard
(e.g., GSM or CDMA) as the carrier on whose network the customer is
roaming.\37\ However, if, in the future, handsets become available that
employ multiple digital technologies or software-defined radio
capabilities, this may reduce or eliminate technical impediments to the
subscribers of any carrier roaming on any other carrier's network. The
FCC, therefore, seeks comment as to whether and how soon such
technology developments may occur, and if so, what effect the
availability of multi-technology handsets will have on carriers'
roaming options (e.g., if multi-technology handsets were available,
should we require carriers using CDMA technologies to enter into
roaming agreements with GSM carriers)? \38\
---------------------------------------------------------------------------
\37\ Id. at para. 47.
\38\ Id.
---------------------------------------------------------------------------
21. Roaming on Analog Networks. In 2002, the Commission established
February 18, 2008 as the sunset date for the requirement that cellular
carriers provide analog service.\39\ In light of the pending sunset of
the analog requirement, the FCC seeks comment on whether it is
necessary to extend any automatic roaming obligation that the
Commission might adopt to analog networks. The FCC seeks comment on the
extent to which analog systems are used in roaming today and whether
there is a need to adopt automatic roaming for analog.
---------------------------------------------------------------------------
\39\ Id. at para. 48.
---------------------------------------------------------------------------
22. Also, in the past the FCC has considered the possible effect of
mergers on the roaming market for those wireless telephony consumers
who rely on analog service.\40\ The FCC seeks comment on the extent to
which roaming options will be affected once the analog requirement no
longer exists.\41\ This information is relevant to better assess the
state of the CMRS market and whether analog sunset will affect the
market conditions, in the near future, in a manner that would justify
adoption of an automatic roaming rule for digital networks. The NPRM
requests that parties comment on this change and other technical
changes and their possible effects on the roaming markets.
---------------------------------------------------------------------------
\40\ Id. at para. 49.
\41\ For example, a small cellular GSM carrier might now enter
into a roaming agreement with a nationwide cellular CDMA carrier
operating in its area because both provide analog service. However,
when the analog requirement terminates, the nationwide carrier would
only be able to enter into a roaming agreement with a small CDMA
carrier in the area--if one exists--and the GSM carrier would only
be able to have a roaming agreement with a nationwide GSM carrier--
if one exists in the area.
---------------------------------------------------------------------------
Ex Parte Rules
23. This is a permit-but-disclose notice and comment rulemaking
proceeding. Ex parte presentations are permitted, except during the
Sunshine Agenda period, provided they are disclosed pursuant to the
Commission's Rules. (See generally 47 CFR 1.1202, 1.1203, 1.1206.)
Comment Period and Procedures
24. Pursuant to sections 1.415 and 1.419 of the Commission's rules,
47 CFR 1.415, 1.419, interested parties may file comments and reply
comments on or before the dates indicated on the first page of this
document. 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 (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.
People with Disabilities: To request materials in accessible
formats for people with disabilities (braille, large print, electronic
files, audio format), send an e-mail to fcc504@fcc.gov or call the
Consumer & Governmental Affairs Bureau at (202) 418-0530 (voice), (202)
418-0432 (tty).
Initial Regulatory Flexibility Act Analysis
25. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA),\42\ the Commission has prepared this present Initial
Regulatory Flexibility Analysis (IRFA) of the possible significant
economic impact on a substantial number of small entities by the
policies and rules proposed in 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 in paragraph 53 of the
item, and they must have a separate and distinct heading designating
them as responses to the IRFA. The Commission will send a copy of the
NPRM, including this IRFA, to the Chief Counsel for Advocacy of the
Small Business Administration (SBA), in accordance with the RFA.\43\ In
addition, the NPRM and IRFA (or summaries thereof) will be published in
the Federal Register.\44\
---------------------------------------------------------------------------
\42\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been
amended by the Contract With America Advancement Act of 1996, Pub.
L. No. 1045-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA
is the Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA).
\43\ See 5 U.S.C. 603(a).
\44\ Id.
---------------------------------------------------------------------------
[[Page 56617]]
Need for and Objectives of the Proposed Rules
26. In the Memorandum Opinion and Order (MO&O) and NPRM, the
Commission terminates the open proceeding relating to the automatic and
manual roaming obligations of Commercial Mobile Radio Services (CMRS)
providers in WT Docket No. 00-193, and initiates a new proceeding to
examine whether its current rules regarding roaming requirements
applicable to CMRS providers should be modified given the current state
of the CMRS market. In the MO&O portion of the item, the Commission
terminates its previous consideration of roaming issues in WT Docket
No. 00-193, primarily on the basis that the comments filed and the
matters at issue therein are now stale due to the passage of time and
other regulatory and industry changes that have occurred since its
commencement. As a result, the Commission decides to terminate the
proceeding without the adoption of rules. The Commission also decides
to initiate a NPRM in a new proceeding to examine CMRS roaming in a
manner that takes into account current technological and market
conditions. The Commission's decision will allow it to develop a record
with up-to-date information regarding the state of today's CMRS
marketplace in an effort to determine whether there is a need for a
regulatory regime for roaming services.
27. Specifically, in the NPRM, the Commission seeks to establish a
record on the current state of manual roaming and whether there is a
continuing need for a manual roaming rule. The Commission also seeks
comment on whether carriers should be required to enter into agreements
to allow automatic roaming on their networks and, if so, how such a
rule should be designed, to whom should it apply, and for what period
of time. Furthermore, the Commission requests comment on whether
national carriers are negotiating roaming agreements with small or
rural carriers in an anti-competitive manner or are simply avoiding
their networks altogether and, if so, whether the Commission should
establish an automatic roaming rule that applies to a specific market
or type of carrier and for what period of time. Finally, the Commission
seeks to establish a record on whether digital network and handset
technology has advanced enough that there are no longer technical
limitations affecting the likely provision of roaming.
Legal Basis
28. The potential actions on which comment is sought in this NPRM
would be authorized under sections 1, 4(i), 201(b), 251(a), 253,
303(r), and 332(c)(1)(B) of the Communications Act of 1934, as amended,
47 U.S.C. 151, 154(i), 201(b), 251(a), 253, 303(r), and 332(c)(1)(B).
Description and Estimate of the Small Entities Subject to the Rules
29. The RFA requires that an initial regulatory flexibility
analysis be prepared for notice-and-comment rulemaking proceedings,
unless the agency certifies that ``the rule will not, if promulgated,
have a significant economic impact on a substantial number of small
entities.'' \45\ The RFA generally defines ``small entity'' as having
the same meaning as the terms ``small business,'' ``small
organization,'' and ``small governmental jurisdiction.'' \46\ In
addition, the term ``small business'' has the same meaning as the term
``small business concern'' under the Small Business Act.\47\ 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).\48\
---------------------------------------------------------------------------
\45\ 5 U.S.C. 605(b).
\46\ 5 U.S.C. 601(6).
\47\ 5 U.S.C. 601(3) (incorporating by reference the definition
of ``small business concern'' in 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.''
\48\ Small Business Act, 15 U.S.C. 632.
---------------------------------------------------------------------------
30. To assist the Commission in its analysis, commenters are
requested to provide information regarding which CMRS entities would be
affected by the regulations on which the Commission seeks comment in
this NPRM. In particular, we seek estimates of how many small entities
might be affected.
31. The possible sunset of the existing ``manual'' roaming rule, if
adopted, would eliminate the requirement that covered cellular,
broadband PCS and SMR carriers make service available to individual
users upon request, so long as the roamer's handset is technically
capable of accessing their services. Sunsetting of this rule would be
expected to reduce the existing regulatory burden, if any, on small
businesses that must comply with the requirements of the ``manual''
roaming rule.
32. The ``automatic'' roaming regulations on which the Commission
seeks comment, if adopted, would apply to providers of cellular,
broadband PCS, and SMR services that offer real-time, two-way switched
voice or data service that is interconnected with the public switched
network and utilizes an in-network switching facility that enables the
provider to reuse frequencies and accomplish seamless hand-offs of
subscriber calls.
33. Estimate for Cellular Licensees. The SBA has developed a small
business size standard for small businesses in the category ``Cellular
and Other Wireless Telecommunications.'' \49\ Under that SBA category,
a business is small if it has 1,500 or fewer employees.\50\ According
to the Bureau of the Census, only twelve firms out of a total of 1,238
cellular and other wireless telecommunications firms operating during
1997 had 1,000 or more employees.\51\ Therefore, even if all 12 of
these firms were cellular telephone companies, nearly all cellular
carriers are small businesses under the SBA's definition.
---------------------------------------------------------------------------
\49\ 13 CFR 121.201, North American Industry Classification
System (NAICS) code 517212.
\50\ Id.
\51\ U.S. Census Bureau, 1997 Economic Census, Information--
Subject Series, Establishment and Firm Size, Table 5 (Employment
Size of Firms Subject to Federal Income Tax), NAICS code 517212
(2002). The Census Bureau will be issuing 2002 Economic Census data
relating to telecommunications entities in late 2004.
---------------------------------------------------------------------------
34. In addition, we can assess data provided annually to the
Commission by Telecommunications Relay Service (TRS) carriers. The TRS
data compilation, published in the Commission's Trends in Telephone
Service, groups together cellular, personal communications services,
and specialized mobile radio telephony carriers into a single category
called ``Wireless Telephony.'' As noted above, under the pertinent SBA
small business size standard, a wireless business is small if it has
1,500 or fewer employees.\52\ According to Trends in Telephone Service
data, 447 carriers have reported that they provide Wireless
Telephony.\53\ Of that total, an estimated 245 are small providers,
under the SBA size standard. Thus, we can estimate that the majority of
such businesses are small.
---------------------------------------------------------------------------
\52\ 13 CFR 121.201, NAICS code 517212.
\53\ FCC, Wireline Competition Bureau, Industry Analysis and
Technology Division, ``Trends in Telephone Service'' at Table 5.3,
page 5-5 (May 2004). This source uses data that are current as of
October 22, 2003.
---------------------------------------------------------------------------
35. Additionally, any rules adopted pursuant to this rulemaking
will apply to cellular licensees only if they offer
[[Page 56618]]
real-time, two-way switched voice or data service that is
interconnected with the public switched network and that utilizes an
in-network switching facility that enables the provider to reuse
frequencies and accomplish seamless hand-offs of subscriber calls.
Although the Commission does not have definitive information, we
estimate that most or all small business cellular licensees offer
services meeting this description.
36. Estimate for Broadband PCS Licensees. The broadband PCS
spectrum is divided into six frequency blocks designated A through F,
and the Commission has held auctions for each block. The Commission has
created a small business size standard for Blocks C and F as an entity
that has average gross revenues of less than $40 million in the three
previous calendar years.\54\ For Block F, an additional small business
size standard 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.\55\ These small business size standards, in the context of
broadband PCS auctions, have been approved by the SBA.\56\ 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.\57\ On March 23, 1999, the Commission reauctioned 155 C, D, E, and F
Block licenses; there were 113 small business winning bidders.\58\
---------------------------------------------------------------------------
\54\ See Amendment of Parts 20 and 24 of the Commission's
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile
Radio Service Spectrum Cap, WT Docket No. 96-59, FCC 96-278, Report
and Order, 11 FCC Rcd 7824, 7850-7852 paras. 57-60 (1996), 61 FR
33859 (July 1, 1996); see also 47 CFR 24.720(b).
\55\ See Amendment of Parts 20 and 24 of the Commission's
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile
Radio Service Spectrum Cap, Report and Order, 11 FCC Rcd 7824, 7852
para. 60.
\56\ See Letter to Amy Zoslov, Chief, Auctions and Industry
Analysis Division, Wireless Telecommunications Bureau, Federal
Communications Commission, from Aida Alvarez, Administrator, Small
Business Administration, dated December 2, 1998.
\57\ FCC News, ``Broadband PCS, D, E and F Block Auction
Closes,'' No. 71744 (rel. January 14, 1997).
\58\ See ``C, D, E, and F Block Broadband PCS Auction Closes,''
Public Notice, 14 FCC Rcd 6688 (WTB 1999).
---------------------------------------------------------------------------
37. Any rule modifications that will be made pursuant to this
proceeding will apply to broadband PCS licensees only if they offer
real-time, two-way switched voice or data service that is
interconnected with the public switched network and that utilizes an
in-network switching facility that enables the provider to reuse
frequencies and accomplish seamless hand-offs of subscriber calls.
Although the Commission does not have definitive information, we
estimate that most or all small business broadband PCS licensees offer
services meeting this description.
38. Estimate for SMR Licensees. The Commission awards ``small
entity'' bidding credits in auctions for 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.\59\ The
Commission awards ``very small entity'' bidding credits to firms that
had revenues of no more than $3 million in each of the three previous
calendar years.\60\ The Commission has held auctions for geographic
area licenses in the 800 MHz and 900 MHz bands. The 900 MHz SMR auction
began on December 5, 1995, and closed on April 15, 1996. Sixty bidders
claiming that they qualified as small businesses under the $15 million
size standard won 263 geographic area licenses in the 900 MHz SMR band.
The 800 MHz SMR auction for the upper 200 channels began on October 28,
1997, and was completed on December 8, 1997. Ten bidders claiming that
they qualified as small businesses under the $15 million size standard
won 38 geographic area licenses for the upper 200 channels in the 800
MHz SMR band.\61\ A second auction for the 800 MHz band was held on
January 10, 2002 and closed on January 17, 2002 and included 23 BEA
licenses. One bidder claiming small business status won five
licenses.\62\
---------------------------------------------------------------------------
\59\ 47 CFR 90.814(b)(1).
\60\ Id.
\61\ See ``Correction to Public Notice DA 96-586 `FCC Announces
Winning Bidders in the Auction of 1020 Licenses to Provide 900 MHz
SMR in Major Trading Areas,' '' Public Notice, 18 FCC Rcd 18367 (WTB
1996).
\62\ See ``Multi-Radio Service Auction Closes,'' Public Notice,
17 FCC Rcd 1446 (WTB 2002).
---------------------------------------------------------------------------
39. The auction of the 1,050 800 MHz SMR geographic area licenses
for the General Category channels began on August 16, 2000, and was
completed on September 1, 2000. Eleven bidders won 108 geographic area
licenses for the General Category channels in the 800 MHz SMR band
qualified as small businesses under the $15 million size standard. In
an auction completed on December 5, 2000, a total of 2,800 Economic
Area licenses in the lower 80 channels of the 800 MHz SMR service were
sold. Of the 22 winning bidders, 19 claimed ``small business'' status
and won 129 licenses. Thus, combining all three auctions, 40 winning
bidders for geographic licenses in the 800 MHz SMR band claimed status
as small businesses.
40. In addition, there are numerous incumbent site-by-site SMR
licensees and licensees with extended implementation authorizations in
the 800 and 900 MHz bands. We do not know how many firms provide 800
MHz or 900 MHz geographic area SMR pursuant to extended implementation
authorizations, nor how many of these providers have annual revenues of
no more than $15 million.\63\ One firm has over $15 million in
revenues. We assume, for purposes of this analysis, that all of the
remaining existing extended implementation authorizations are held by
small entities, as that small business size standard is established by
the SBA.
---------------------------------------------------------------------------
\63\ These incumbent entities, which were not subject to
auctions, may also be assessed under the SBA's generic small
business size standard for this category which is 1,500 or few
employees.
---------------------------------------------------------------------------
41. Additionally, any rules adopted pursuant to this rulemaking
will apply to SMR licensees only if they offer real-time, two-way
switched voice or data service that is interconnected with the public
switched network and that utilizes an in-network switching facility
that enables the provider to reuse frequencies and accomplish seamless
hand-offs of subscriber calls. Although the Commission does not have
definitive information, we estimate that many small business SMR
licensees do not offer services meeting this description. Nonetheless,
in the absence of definitive information, we assume that all of the
Commission's SMR licensees that are small businesses may be subject to
any rules that may be adopted in this proceeding.
Reporting, Recordkeeping, and Other Compliance Requirements
42. The Commission anticipates that any rules that may be adopted
pursuant to this Notice will impose at most only limited reporting or
recordkeeping requirements. The only compliance costs likely to be
incurred are administrative costs to ensure that an entity's practices
are in compliance with the rule. The only compliance requirement of any
possible new rules is that licensees subject to any automatic roaming
requirement (i.e., cellular licenses, broadband PCS licensees, and
geographic area 800 MHz and 900 MHz SMR licensees that offer real-time,
two-way, interconnected switched voice and data service) will need to
provide non-discriminatory access to their wireless
[[Page 56619]]
systems via automatic roaming once they reach an agreement with any
carrier to permit automatic roaming. As noted above in this IRFA and in
the text of the NPRM, the Commission seeks comment on the potential
costs of implementing an automatic roaming requirement in this context,
including such potential costs on small business.\64\
---------------------------------------------------------------------------
\64\ See NPRM at paras. 28, 38-43.
---------------------------------------------------------------------------
Steps Taken To Minimize Significant Economic Impact on Small Entities,
and Significant Alternatives Considered
43. 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
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.\65\
---------------------------------------------------------------------------
\65\ 5 U.S.C. 603(c).
---------------------------------------------------------------------------
44. As noted, the possible sunset of the manual roaming rule, if
adopted, would be expected to reduce any existing economic impact on
small business. Therefore, the only possible negative economic impacts
that might arise from this NPRM are those what would be associated with
an ``automatic'' roaming rule.
45. However, as discussed in the NPRM, small and rural wireless
service providers have requested that the Commission adopt an automatic
roaming rule in some form. Small and rural service providers assert
that CMRS industry mergers have significantly reduced their nationwide
roaming options. With a reduced number of nationwide roaming partners
available, small and rural carriers are concerned that the remaining
nationwide carriers will be able to use increased market power to
adversely affect roaming negotiations in the future. These carriers
contend that the large nationwide service providers are able to
exercise market power through an advantageous bargaining position that
affects not just the ability of small and rural carriers to enter into
roaming agreements, but the terms of such agreements. Small and rural
carriers also claim that numerous incompatible technologies further
reduce their bargaining power.
46. Additionally, small and rural carriers assert that the amount
of roaming traffic they exchange with other carriers has been
significantly reduced as the large carriers enter into roaming
agreements with other larger carriers and avoid roaming on smaller
carriers' networks. These small carriers believe such behavior is
indicative of a larger industry trend where the larger carriers have
begun to favor each other to the exclusion of smaller competitors,
ignoring high cost rural areas. These carriers state that a substantial
portion of their revenue comes from roaming revenue and the loss of
such revenue makes it difficult for them to remain viable. They assert
that favorable deals between large carriers eliminate a vital source of
revenue for small and rural carriers. Furthermore, small carriers
contend that the large carriers' practice of negotiating favorable
roaming deals with one another constitutes unreasonable discrimination
in violation of section 202 of the Communications Act.
47. Small and rural carriers also assert that with industry
consolidation, large carriers behave in an anti-competitive manner with
respect to roaming. They contend that consolidation has allowed large,
nationwide CMRS carriers to use their increased market power to demand
asymmetrical roaming rates from small, rural carriers. In certain
cases, they assert, rural carriers must pay over five times as much to
allow their customers to roam on nationwide carrier networks as the
nationwide carriers pay for their customers to roam on rural networks.
They argue that these asymmetrical roaming rates harm rural consumers
and prevent small and rural carriers from offering their rural
subscribers viable nationwide service plans that would allow rural
subscribers to roam on nationwide carriers' networks.
48. As a result of these assertions, the Commission seeks comment
in the NPRM on the concerns raised by small and rural carriers. The
Commission asks commenters to submit economic analysis and data
regarding evidence of discriminatory or non-discriminatory roaming
practices on an industry-wide basis, and the impact of such practices
on consumers. The Commission requests information on whether roaming
rates are declining among carriers, and, if so, whether this is due to
a more robust CMRS market or, as small and rural carriers claim, from
the dwindling number of nationwide carriers favoring one another in
roaming agreements to the exclusion of other carriers. The Commission
seeks specific evidence of wireless providers denying roaming
agreements to other providers in a manner that harms the providers or
consumers. The NPRM also seeks comment on and evidence of whether
large, nationwide carriers are preferring one another over other
carriers in roaming agreements, and whether such a preference is a
violation of section 202 of the Communications Act.
49. In addition, the Commission seeks comment on whether large,
nationwide carriers are engaging in the practice of barring their
subscribers' access to networks operated by other carriers. If so, the
Commission asks, does this type of practice violate the spirit of its
rule requiring carriers to provide roaming access by preventing
subscribers from utilizing such a service? The Commission seeks comment
on the assertion by small and rural carriers that large carriers are
using their market power to develop one-sided roaming agreements, at
terms more favorable to themselves. The NPRM asks whether the
Commission should require nondiscriminatory, rather than one-sided,
automatic roaming arrangements. In this regard, the NPRM asks whether
large or nationwide carriers should be required to make their networks
available to all roaming partners on the same terms and conditions as
they offer to their ``most-favored'' roaming partners. Moreover, the
Commission seeks comment on whether large, nationwide carriers control
``bottleneck'' facilities that impact the ability of customers to roam
onto or off of small and rural wireless networks. Finally, the
Commission also seeks comment on whether the concerns raised by small
and rural carriers should be examined on a regional or local basis.
50. The Commission will draw on the information gained from
comments filed in response to the NPRM when considering whether an
automatic roaming rule should be promulgated, and if so, how it can
best be drafted to minimize any costs placed on small businesses. For
instance, the Commission asks whether the alternative of an exemption
tailored for small business would be appropriate given the possible
costs of an automatic roaming rule.\66\
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\66\ See NPRM at para. 28.
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Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
51. None.
Ordering Clauses
52. Pursuant to sections 1, 4(i), 201(b), 251(a), 253, 303(r), and
332(c)(1)(B) of the Communications Act of 1934, as amended, 47 U.S.C.
151, 154(i), 201(b), 251(a), 253, 303(r), and 332(c)(1)(B), and
sections 1.411 and 1.412 of the
[[Page 56620]]
Commission's rules, 47 CFR 1.411 and 1.412, the Memorandum Opinion &
Order and Notice of Proposed Rulemaking is adopted.
53. Pursuant to sections 4(i), 201(b), 251(a), 253, 303(r) and
332(c)(1)(B) of the Communications Act of 1934, as amended, 47 U.S.C.
154(i), 251(a), 253, 303(r) and 332(c)(1)(B), and sections 1.411 and
1.412 of the Commission's rules, 47 CFR 1.411 and 1.412, the automatic
and manual roaming rulemaking proceeding in WT Docket No. 00-193 is
terminated.
54. The Petition for Commission Action filed by the Rural
Telecommunications Group, Inc. on November 1, 2004 is granted, to the
extent described in the Notice of Proposed Rulemaking.
55. Notice is given of the proposed regulatory changes described in
this Notice of Proposed Rulemaking, and comment is sought on these
proposals.
56. 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. 05-19346 Filed 9-27-05; 8:45 am]
BILLING CODE 6712-01-P