DTV Tuner Requirements, 75739-75743 [05-24217]
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Federal Register / Vol. 70, No. 244 / Wednesday, December 21, 2005 / Rules and Regulations
Dated: December 15, 2005.
Rachel C. Holloman,
Acting Director, Registration Division, Office
of Pesticide Programs.
Therefore, 40 CFR chapter I is
amended as follows:
I
PART 180—[AMENDED]
1. The authority citation for part 180
continues to read as follows:
I
Authority: 21 U.S.C. 321(q), 346a and 371.
Cattle, fat; Cattle, meat byproducts;
Cattle, meat; Goat, fat; Goat, meat
byproducts; Goat, meat; Grapefruit;
Grapefruit, dried pulp; Grapefruit oil;
Hogs, fat; Hogs, meat byproducts; Hogs,
meat; Horse, fat; Horse, meat
byproducts; Horse, meat; Sheep, fat;
Sheep, meat byproducts; and, Sheep,
meat; by revising the expiration dates
‘‘12/31/05’’ to read ‘‘12/31/08.’’
§ 180.495
[Amended]
2. In § 180.110, in the table to
paragraph (b), amend the entry for
Walnuts by revising the expiration date
‘‘12/31/07’’ to read ‘‘12/31/08.’’
11. In § 180.495, in the table to
paragraph (b), amend the entries for
Alfalfa, forage; Alfalfa, hay; Grass,
forage; and Grass, hay; by revising the
expiration date ‘‘12/31/05’’ to read ‘‘12/
31/08.’’
§ 180.371
§ 180.544
§ 180.110
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[Amended]
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[Amended]
3. In § 180.371, in the table to
paragraph (b), amend the entry for
Vegetables, Fruiting, Group 8 by
revising the expiration date ‘‘12/31/05’’
to read ‘‘12/31/08.’’
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§ 180.377
[Amended]
4. In § 180.377, in the table to
paragraph (b), amend the entries for
Barley, grain; Barley, hay; Barley, straw;
Wheat, aspirated grain fractions; Wheat,
grain; Wheat, hay; Wheat, milled
byproducts; and Wheat, straw by
revising the expiration date ‘‘12/31/05’’
to read ‘‘12/31/08.’’
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§ 180.434
[Amended]
[Amended]
[Amended]
8. In § 180.474, in the table to
paragraph (b), amend the entries for
Garlic; Sunflower, oil and Sunflower,
seed by revising the expiration date ‘‘12/
31/05’’ to read ‘‘12/31/07.’’
[Amended]
9. In § 180.475, in the table to
paragraph (b), amend the entries for
Corn, sweet (kernel + cob with husk
removed; Corn, sweet, forage; and Corn,
sweet, stover by revising the expiration
dates ‘‘12/31/05’’ to read ‘‘12/31/08.’’
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[Amended]
10. In § 180.480, in the table to
paragraph (b), amend the entries for
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47 CFR Part 15
Federal Communications
Commission.
ACTION: Final rule.
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§ 180.480
FEDERAL COMMUNICATIONS
COMMISSION
AGENCY:
6. In § 180.438, in the table to
paragraph (b), amend the entries for
Barley, bran; Barley, grain; Barley, hay;
Barley, straw; Clover, forage; Clover,
hay; Grass, forage; Grass, hay; Rice, wild
by revising the expiration dates ‘‘12/31/
05’’ to read ‘‘12/31/08.’’
§ 180.475
BILLING CODE 6560–50–S
DTV Tuner Requirements
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§ 180.474
[FR Doc. 05–24322 Filed 12–20–05; 8:45 am]
[ET Docket No. 05–24; FCC 05–190]
5. In § 180.434, in the table to
paragraph (b), amend the entry for
Cranberry by revising the expiration
date ‘‘12/31/05’’ to read ‘‘12/31/07.’’
I
§ 180.438
[Amended]
12. In § 180.544, in the table to
paragraph (b), amend the entries for
Soybean, aspirated grain fractions;
Soybean, forage; Soybean, hay; Soybean,
refined oil; Soybean, seed by revising
the expiration date ‘‘12/31/05’’ to read
‘‘12/31/07.’’
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SUMMARY: This document modifies the
rules to advance the date on which new
television receivers with certain screen
sizes and other TV receiving devices
such as VCRs and digital video
recorders, must include the capability to
receive digital television signals forward
four months. This action is intended to
further the Commission’s efforts to
ensure that consumers are able to
receive off-the-air digital broadcast
television services as soon as possible.
DATES: Effective January 20, 2006.
FOR FURTHER INFORMATION CONTACT:
Alan Stillwell, Office of Engineering
and Technology, (202) 418–2925, email: Alan.Stillwell@fcc.gov, TTY (202)
418–2989.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Second
Report and Order, ET Docket No. 05–24,
FCC 05–190, adopted November 3, 2005
and released November 8, 2005. The full
text of this document is available on the
Commission’s Internet site at https://
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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.
Congressional Review Act
The Commission will send a copy of
this Second Report and Order, in a
report to be sent to Congress and the
General Accounting Office pursuant to
the Congressional Review Act, see 5
U.S.C. 801(a)(1)(A).
Summary of the Report and Order
1. The Commission modified its rules
to advance the date on which new
television receivers with screen sizes
13–24″ and certain other TV receiving
devices such as VCRs and digital video
recorders must include the capability to
receive broadcast digital television
signals from the current date of July 1,
2007 to March 1, 2007. The Commission
also amended its rules to apply the
digital television reception capability
requirement to new receivers with
screen sizes smaller than 13″ on this
same schedule. The DTV reception
requirement, which also often is termed
the ‘‘DTV tuner requirement,’’ is being
implemented under an approach that
applies it first to large screen receivers
and then progressively to smaller screen
receivers and other devices over a
period of several years. The
modifications made herein affect the
final step of this phase-in plan. With
these changes, the scheduled
implementation plan will provide for all
new TV receiver equipment to include
digital reception capability as of March
1, 2007.
2. This action follows the
Commission’s previous decision in the
Report and Order and Further Notice of
Proposed Rulemaking (R&O/FNPRM),
70 FR 38800 and 38845, July 6, 2005, in
this proceeding to advance the date on
which 100 percent of TV receivers with
screen sizes 25–36″ must include digital
reception capability to March 1, 2006. In
this regard, the Commission continues
to believe that it is essential that DTV
reception capability be provided to
consumers in new TV receivers as
rapidly as possible in order to promote
an expeditious completion of the
transition from analog to digital
broadcast television service. Consistent
with that objective, our goal in this
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further action is to advance the schedule
on which all new television receivers
must comply with the DTV tuner
requirement. The Commission
concluded that advancing the DTV
tuner mandate effective date for 13–24″
TV sets and other TV receiving devices
to March 1, 2007 and applying this
requirement to receivers with screens
smaller than 13″ will most effectively
ensure that products in these categories
are equipped to receive digital
television signals as quickly as possible
consistent with the manufacturing and
product distribution capabilities of
manufacturers and retailers.
3. As we have observed previously,
consumers must be able to receive
digital TV signals for the transition to
move forward to a successful
completion. The DTV tuner requirement
is intended to provide off-the-air DTV
reception capability to the general
population on a schedule that will
promote a rapid completion of the DTV
transition. Our goal in this matter
remains to maximize the number of TV
receivers with DTV tuners on the
market, with a final goal that all new
television receiver products include a
DTV tuner, as quickly as possible. We
recognize, however, that manufacturers’
and retailers’ product development and
distribution resources and capabilities
will affect their ability to comply with
the tuner requirement and therefore
need to be considered in decisions
modifying that requirement.
Receivers 13–24″ and Other TV
Receiving Devices
4. Decision. Consistent with the need
to promote a rapid and orderly end to
the DTV transition, we continue to
believe it is desirable and appropriate to
advance the date by which all new
television receiving equipment must
include the capability to receive overthe-air broadcast DTV signals. The rules
already require that all new large screen
receivers and 50 percent of a
responsible party’s mid-size receivers
include digital reception capability and
we recently advanced the date by which
all mid-size receivers must include that
capability by four months, to March 1,
2006. Advancing the date by which the
remaining 13–24″ smaller-size sets and
other TV receiver devices categories
must comply with the DTV tuner
requirement will serve to ensure that a
greater portion of all TV receiver
products that are in use by consumers
at the time analog service ceases will be
able to receive broadcasters’ digital
signals and thus provide for a smooth
and orderly completion of the
switchover process. Commenters
observed, that many consumers do, in
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fact, rely on a smaller-size set as their
primary device for watching TV service
and those consumers will receive only
limited benefits from purchasing new
analog-only sets that will not receive
broadcast signals when analog service
ceases.
5. Our goal in the R&O/FNPRM with
respect to the smaller-size sets and other
TV receiving devices categories was to
advance the date by which these
products must include digital reception
capability to December 31, 2006 or
earlier, if feasible. In deciding on a new
date for applying the tuner requirement
to these products, we need to consider
the ability of manufacturers to produce
compliant products as well as the
benefits of including DTV tuners in
these products. After carefully
examining the record, the Commission
concludes that the action which most
appropriately balances our concerns on
both sides of this matter is to advance
the date by which new 13–24″ television
sets and other TV receiver devices must
include the capability to receive
broadcast digital television signals to
March 1, 2007. From the information
provided by commenters and the
participating manufacturers, we
conclude that it may not be feasible for
the general population of receiver
manufacturers to produce all of their
products in these categories with DTV
tuners at an earlier date. In particular,
we recognize the manufacturers’ points
that the DTV tuners that will be
included in smaller receivers are not the
same units as installed in larger screen
sets, that the design of smaller screen
receivers is changing to flat or thin
panel formats, and that the product
development, parts acquisition,
manufacturing, distribution, and
marketing processes for new television
receiver products are both technically
demanding and complex with multiple
steps that must be completed in
succession. We are not adopting Philips’
suggestion that we exempt other TV
receiver products from the accelerated
date for compliance with the tuner
requirements, as other manufacturers
appear to be able to include DTV tuners
in those products by March 1, 2007.
6. The Commission is concerned that
if it were to require DTV reception
capability in smaller-size and other TV
receiver products before the general
population of manufacturers is able to
properly complete the product
development process, it could prove
disruptive to the market for those
products. Specifically, we are concerned
that such disruptions could possibly
involve deficiencies in the quality of
products marketed so that they would
not be acceptable to consumers,
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manufacturers deciding to simply leave
the market for these products, or
manufacturers just removing broadcast
television reception capability from
these products. The Commission does
not find that it would be better to accept
the removal of 13–24″ TV sets from the
marketplace or the removal of all
television reception capability from a
display device. To do so might pose
business costs for manufacturers in
terms of lost sales or possible shut-down
of production facilities that we do not
believe are necessary.
7. We also note that the March 1, 2007
date when the industry indicates that
the general population could be ready to
produce 13–24″ sets and other TV
receiver products with DTV tuners is
only two months beyond our December
31, 2006 proposal. We believe that the
benefits of allowing manufacturers to
proceed with the inclusion of DTV
tuners in these products on a more
orderly basis would outweigh the
adverse effects of the relatively small
number of affected products (as
compared to the hundreds of millions of
analog-only receivers currently in use)
that would be brought into the market
in the two month period between
December 31, 2006 and March 1, 2007.
Upon balancing the production
capabilities of manufacturers and our
interests in promoting a rapid
conclusion to the DTV transition, we
believe the brief two month period
when new analog-only sets can be
brought onto the market will still allow
the return of the 700 MHz spectrum in
a timely manner without overly
burdening manufacturers. Accordingly,
we are advancing the date by which
television receivers with screen sizes
13–24″ and other TV receiver devices
must include the capability to receive
digital television signals from July 1,
2007 to March 1, 2007.
Receivers With Screen Sizes Less Than
13″
8. In the R&O/FNPRM, the
Commission sought comment on
whether it should extend the DTV tuner
requirement to apply to receivers with
screen sizes less than 13″ inches. It
noted that if such devices are to provide
off-the-air reception of TV signals after
the transition, they too must be able to
receive DTV signals and that it is less
likely that very small screen receivers,
and particularly handheld and similar
portable devices, would be used with a
separate device for receiving DTV
signals.
9. Decision. The Commission finds
merit in the concerns that receivers with
screen sizes less than 13″ should also be
required to include DTV reception
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capability. Unlike larger screen
receivers, the portable and typically
battery-powered products in this
category are more likely to be used to
receive off-the-air signals and to not
have inputs for connection to a separate
DTV receiver. Thus, in contrast to larger
screen receivers and other TV receiving
devices, it is reasonable to expect that
sets with screen sizes less than 13″
would generally not be useful to
consumers once analog television
service ceases. We recognize that these
very small receivers are not typically
used as a viewer’s primary receiver.
Nonetheless we also note their
particular value for enabling the
reception of news and public safety
information in times of emergency. We
therefore conclude that it would benefit
consumers and the purposes of the
broadcast television service and its
transition to digital operation to require
that receivers with screens less than 13″
are able to receive digital signals on the
same schedule as other TV receiver
products. Extending the DTV tuner
requirement to receivers with screen
sizes less than 13″ on that schedule will
maximize the number of receivers in
this category that will continue to be
able to provide service after analog TV
operation ceases. We are not convinced
that it would be overly burdensome for
the consumer electronics industry to
bring these products into compliance
with the DTV tuner requirement by the
date when all other TV receiver
products must include DTV reception
capability. For example, Philips
supports extending the tuner
requirement to sets in this category.
Because of the limited usefulness of
these products for other purposes after
analog service ends, we believe it would
be preferable to restrict the marketing of
products than to continue to allow noncompliant products to be sold to
consumers. Accordingly, we will
require that responsible parties equip
television receivers with screens less
than 13″ that are imported into this
country or shipped in interstate
commerce on and after March 1, 2007
with the capability to receive broadcast
digital television signals.
10. The Commission agrees with
commenters that this extension of the
DTV tuner requirement to very small
screen devices should only apply to
products that receive off-the-air
broadcasts and not other types of offthe-air reception devices such as cell
phones and personal digital assistants
(PDAs) that do not include the
capability to receive broadcast TV
service on the frequencies allocated for
that service but may be able to receive
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broadcast TV programming that is retransmitted over a wireless
communications link other than a TV
channel. To the extent that such devices
are able to display broadcast TV
programming transmitted over a nonbroadcast communications link, we do
not consider a device with that
capability to be a broadcast TV receiver.
Therefore, the DTV tuner requirement
does not extend to small screen video
capable devices that do not include the
ability to receive broadcast television
signals off-the-air. However, in cases
where a cell phone, PDA or similar
device does include the capability to
receive TV programming on the
channels allocated for the broadcast
television service, that device is a TV
broadcast receiver under § 15.3(w) of the
rules and must comply with the DTV
tuner requirement.
Other Approaches—Labeling
Requirements
11. In the R&O/FNPRM the
Commission also requested suggestions
for alternative approaches for including
DTV reception capability in all new TV
receivers. Chris Llana recommends that
as an alternative approach in
conjunction with the DTV tuner
requirement the Commission also
require that television receiver products
be labeled with enough information to
permit consumers to make a fully
informed decision before purchase and
to alert them to the downsides of buying
an analog-only product. He submits that
any label should be clear and complete
and that the label should be placed on
the screen of TV sets, where it would
draw attention to itself.
12. The Commission believes that
consumer awareness of whether a
television can receive off-the-air DTV
signals or only off-the-air analog signals
is critical to ensuring that consumer
expectations are met. It also believes
that it would further consumer
education if manufacturers and retailers
would provide point-of-sale and other
marketing information to consumers
and/or clearly label new television sets.
The Commission believes that such
efforts would result in more informed
consumer choices about whether to buy
DTV tuner equipped sets. These issues
have been raised in the Second DTV
Periodic Review, MB Docket No. 03–15,
and we intend to address these issues
expeditiously. In the interim, the
Commission encourages manufacturers
and retailers to clearly label and identify
the tuning capabilities of new TV sets
and/or employ other means to
disseminate to consumers information
regarding whether or not specific
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models are able to receive off-the-air
digital television signals.
Final Regulatory Flexibility Analysis
13. As required by the Regulatory
Flexibility Act of 1980, as amended
(‘‘RFA’’),1 an Initial Regulatory
Flexibility Analysis (IRFA) was
incorporated into the R&O/FNPRM in
ET Docket No. 05–24 (Report and Order
and Further Notice). The Commission
sought written public comment on the
proposals on the NPRM concerning
modification of the plan for applying
the DTV tuner requirement to TV
receivers with screen sizes 25–36″,
including comment on the IRFA. No
comments were received in response to
the IRFA. This Final Regulatory
Flexibility Analysis (FRFA) conforms to
the RFA.2
A. Need for and Objectives of the
Rules Adopted in the Second Report
and Order. As described in the Second
Report and Order and Further Notice,
the changes to the rules adopted in this
proceeding are intended to ensure a
smooth transition of the nation’s
television system to digital television.
Beginning in 1987, the Commission
undertook to bring the most up-to-date
technology to broadcast television.3
That effort resulted in several
Commission decisions, including those
adopting a digital television (DTV)
standard,4 DTV service rules,5 and a
Table of DTV Allotments.6 The Table of
DTV Allotments provides each existing
television broadcaster with a second
channel on which to operate a DTV
station for a transition period in which
stations will operate both analog and
digital TV service, after which analog
service will cease and one of each
station’s two channels will revert to the
government for use in other services.
The transition deadline established by
Congress was December 31, 2006.
In 2002, consistent with its efforts to
promote the expeditious completion of
1 See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601–
612, has been amended by the Small Business
Regulatory Enforcement Fairness Act of 1996
(SBREFA), Public Law 104–121, Title II, 110 Stat.
857 (1996).
2 See 5 U.S.C. 604.
3 See Notice of Inquiry in MM Docket No. 87–268,
2 FCC Rcd 5125 (1987); 52 FR 34259, September 10,
1987, see also Tentative Decision and Further
Notice of Proposed Rulemaking in MM Docket No.
87–268, 3 FCC Rcd 6520 (1988), 53 FR 38747,
October 3, 1988.
4 See Fourth Report and Order in MM Docket No.
87–268, 11 FCC Rcd 17771 (1996), 62 FR 14006,
March 25, 1997.
5 See Fifth Report and Order in MM Docket No.
87–268, 12 FCC Rcd 12809 (1997), 63 FR 13546,
May 20, 1998.
6 See Sixth Report and Order in MM Docket No.
87–268, 12 FCC Rcd 14588 (1997), 62 FR 2668, July
11, 1997.
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the DTV transition, the Commission
adopted a requirement that all new
television receivers imported or shipped
in interstate commerce after July 1, 2007
include the capability to receive DTV
signals off-the-air. In order to minimize
the impact of the DTV tuner
requirement on both manufacturers and
consumers, the Commission adopted a
phase-in schedule that applies the DTV
tuner requirement first to receivers with
the screens and then to progressively
smaller screen receivers and other TV
receiving devices. In the R&O/FNPRM,
the Commission modified the phase-in
schedule for requiring DTV tuners in
new television receiver products by
advancing the date for 100%
compliance by receivers with 25–36″
screens to March 1, 2006 from July 1,
2006. In that action, the Commission
concluded that maintaining the 50
percent requirement for 25–36″
receivers for the period from July 1,
2005 to February 28, 2005 and
advancing the 100 percent compliance
date for mid-size receivers to March 1,
2006 will ameliorate the concerns of the
consumer electronics manufacturers and
retailers with respect to the 50 percent
approach and further its goal of
promoting DTV reception availability.
In that action, the Commission also
proposed to advance the compliance
date for 13–24″ receivers in order to
promote a more rapid conclusion to the
digital television transition.
In the Second Report and Order, the
Commission revised its rules to advance
the date on which new television
receivers with screen sizes 13–24″ and
certain other TV receiving devices such
as VCRs and digital video recorders
must include the capability to receive
broadcast digital television signals from
the current date of July 1, 2007 to March
1, 2007. The Commission also amends
its rules to apply the digital television
reception capability requirement to new
receivers with screen sizes smaller than
13″ on this same schedule. With these
changes, the scheduled DTV tuner
implementation plan will require that
all new TV receiver equipment include
digital reception capability as of March
1, 2007. The Commission is taking these
steps to ensure that digital television
reception capability is provided to the
general population on a schedule that
will promote a rapid completion of the
DTV transition. In this regard, we
observe that consumers must be able to
receive digital signals for the transition
to move forward to a successful
completion. The Commission’s goal in
taking the actions in the Second Report
and Order is to maximize the number of
TV receivers on the market, with a final
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goal that all new television receiver
products include a DTV tuner as quickly
as possible. In crafting those actions, the
Commission recognized that
manufacturers’ product and distribution
resources will affect their ability to
comply with the tuner requirement and
balanced those considerations with the
need to ensure that new TV receiver
products include DTV tuners.
B. Summary of Significant Issues
Raised by Public Comments in Response
to the IRFA: No comments were filed in
response to the IRFA.
C. Description and Estimate of the
Number of Small Entities to Which the
Proposed Rules Will Apply. The RFA
directs the Commission to provide a
description of and, where feasible, an
estimate of the number of small entities
that will be affected by the proposed
rules.7 The RFA generally defines the
term ‘‘small entity’’ as having the same
meaning as the terms ‘‘small business,’’
‘‘small organization,’’ and ‘‘small
governmental entity.’’ 8 In addition, the
term ‘‘small business’’ has the same
meaning as the term ‘‘small business
concern’’ under the Small Business
Act.9 A small business concern is one
which: (1) Is independently owned and
operated; (2) is not dominant in its field
of operation; and (3) satisfies any
additional criteria established by the
Small Business Administration
(‘‘SBA’’).10
Electronics Equipment Manufacturers.
Rules adopted in this proceeding will
apply to manufacturers of DTV
receiving equipment and other types of
consumer electronics equipment. The
SBA has developed definitions of small
entity for manufacturers of audio and
video equipment 11 as well as radio and
television broadcasting and wireless
communications equipment.12 These
categories include the types of
equipment affected by the rules adopted
herein and both include all such
companies employing 750 or fewer
employees. However, these NAICS
categories are broad and specific figures
are not available as to how many of
these establishments manufacture
75
U.S.C. 603(b)(3).
U.S.C. 601(6).
9 5 U.S.C. 601(3) (incorporating by reference the
definition of ‘‘small business concern’’ in the Small
Business Act, 15 U.S.C. 632). Pursuant to 5 U.S.C.
601(3), the statutory definition of a small business
applies ‘‘unless an agency, after consultation with
the Office of Advocacy of the Small Business
Administration and after opportunity for public
comment, establishes one or more definitions of
such term which are appropriate to the activities of
the agency and publishes such definition(s) in the
Federal Register.’’
10 15 U.S.C. 632.
11 13 CFR 121.201 (NAICS Code 334310).
12 13 CFR 121.201 (NAICS Code 334220).
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consumer equipment. According to the
SBA’s regulations, an audio and visual
equipment manufacturer must have 750
or fewer employees in order to qualify
as a small business concern.13 Census
Bureau data indicates that there are 554
U.S. establishments that manufacture
audio and visual equipment, and that
542 of these establishments have fewer
than 500 employees and would be
classified as small entities.14 The
remaining 12 establishments have 500
or more employees; however, we are
unable to determine how many of those
have fewer than 750 employees and
therefore, also qualify as small entities
under the SBA definition. Under the
SBA’s regulations, a radio and television
broadcasting and wireless
communications equipment
manufacturer must also have 750 or
fewer employees in order to qualify as
a small business concern.15 Census
Bureau data indicates that there 1,215
U.S. establishments that manufacture
radio and television broadcasting and
wireless communications equipment,
and that 1,150 of these establishments
have fewer than 500 employees and
would be classified as small entities.16
The remaining 65 establishments have
500 or more employees; however, we
are unable to determine how many of
those have fewer than 750 employees
and therefore, also qualify as small
entities under the SBA definition. We
therefore conclude that there are no
more than 542 small manufacturers of
audio and visual electronics equipment
and no more than 1,150 small
manufacturers of radio and television
broadcasting and wireless
communications equipment for
consumer/household use.
Computer Manufacturers. The
Commission has not developed a
definition of small entities applicable to
13 13
CFR 121.201 (NAICS Code 334310).
and Statistics Administration,
Bureau of Census, U.S. Department of Commerce,
1997 Economic Census, Industry Series—
Manufacturing, Audio and Video Equipment
Manufacturing, Table 4 at 9 (1999). The amount of
500 employees was used to estimate the number of
small business firms because the relevant Census
categories stopped at 499 employees and began at
500 employees. No category for 750 employees
existed. Thus, the number is as accurate as it is
possible to calculate with the available information.
15 13 CFR 121.201 (NAICS Code 513220).
16 Economics and Statistics Administration,
Bureau of Census, U.S. Department of Commerce,
1997 Economic Census, Industry Series—
Manufacturing, Radio and Television Broadcasting
and Wireless Communications Equipment
Manufacturing, Table 4 at 9 (1999). The amount of
500 employees was used to estimate the number of
small business firms because the relevant Census
categories stopped at 499 employees and began at
500 employees. No category for 750 employees
existed. Thus, the number is as accurate as it is
possible to calculate with the available information.
14 Economics
E:\FR\FM\21DER1.SGM
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Federal Register / Vol. 70, No. 244 / Wednesday, December 21, 2005 / Rules and Regulations
rmajette on PROD1PC67 with RULES
computer manufacturers. Therefore, we
will utilize the SBA definition of
electronic computers manufacturing.
According to SBA regulations, a
computer manufacturer must have 1,000
or fewer employees in order to qualify
as a small entity.17 Census Bureau data
indicates that there are 563 firms that
manufacture electronic computers and
of those, 544 have fewer than 1,000
employees and qualify as small
entities.18 The remaining 19 firms have
1,000 or more employees. We conclude
that there are approximately 544 small
computer manufacturers.
D. Description of Projected Reporting,
Recordkeeping and other Compliance
Requirements. The rule changes
adopted in the Report and Order impose
no additional recordkeeping or
recordkeeping requirements on
manufacturers of television receiving
equipment, large or small. While the
modifications adopted therein may have
a small impact on consumer electronics
manufacturers, any such impact would
be similar for both large and small
entities. We do not believe that the
potential impact on an specified number
of small entities outweighs the overall
public interest benefits conferred by of
the rule changes adopted in the Second
Report and Order.
E. Steps Taken to Minimize
Significant Impact on Small Entities,
and Significant Alternatives Considered.
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.19
The modification of the date for
implementing the DTV tuner
requirement in TV receivers with screen
sizes in the 13–24″ and under 13″ size
ranges and other television receiver
products set forth herein is intended to
expedite the availability of DTV tuners
in products in these categories that are
offered to consumers. The consumer
17 13
CFR 121.201 (NAICS Code 334111).
and Statistics Administration,
Bureau of Census, U.S. Department of Commerce,
1997 Economic Census, Industry Series—
Manufacturing, Electronic Computer
Manufacturing, Table 4 at 9 (1999).
19 5 U.S.C. 603(c)(1)–(c)(4).
18 Economics
VerDate Aug<31>2005
14:47 Dec 20, 2005
Jkt 208001
electronics industry has indicated that it
prefers the DTV tuner requirement to
become effective for 13–24″ receivers
and other television receiver products
on March 1, 2007 rather than a date of
December 31, 2006 or earlier as
proposed. The Commission also found
that it was necessary to apply the tuner
requirement to receivers with screen
sizes less than 13″ in order to ensure
that new products in that category
remain functional after the cessation of
analog TV service. Moving the
compliance date for these receivers to
March 1, 2007 rather than an earlier
date will allow the general population
of manufacturers sufficient time to
include digital reception capability in
small TV sets and other television
receiver products and will also serve to
promote the availability of digital
reception capability in these sets for
consumers.
Alternative approaches considered by
the Commission, but rejected, include
various suggestions by broadcasters and
others to advance the deadline for DTV
tuners in 25–36″ sets to either October
1, 2006 or November 1, 2006. We
rejected these options on the basis that
the lead-times available for product
development under those scenarios
would be too short for the general
population of manufacturers, including
smaller manufacturers, to bring new
compliant products to the market,
especially given the times associated
with specification, design, testing and
obtaining parts and components from
suppliers. While other options that
would have extended the deadline
beyond March 1, 2007 may have posed
less potential impact on manufacturers,
including small business manufacturers,
extending the date beyond March 1,
2007 would be inconsistent with the
need to expedite the DTV transition. In
its decision, the Commission balanced
the need to ensure that DTV reception
capability is included in new TV
receivers as soon as possible with its
concerns for impact on manufacturers,
including small manufacturers. Thus,
the plan adopted minimizes the
potential impact on small manufacturers
consistent with the Commission’s goals
for the DTV reception requirement.
F. Federal Rules Which Duplicate,
Overlap, or Conflict With the
Commission’s Proposals. None.
Ordering Clauses
14. Pursuant to the authority
contained in Sections 2(a), 4(i) & (j), 7,
151 and 303 of the Communications Act
of 1934 as amended, 47 U.S.C. 152(a),
154(i) & (j), 151, 157, and 303, this
Second Report and Order is adopted
and the Commission’s rules are hereby
PO 00000
Frm 00031
Fmt 4700
Sfmt 4700
75743
amended as set forth in Rule Changes,
and shall become effective January 20,
2006.
15. The Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Second Report and Order, including
the Final Regulatory Flexibility
Analysis, to the Chief Counsel for
Advocacy of the Small Business
Administration.20
List of Subjects in 47 CFR Part 15
Communications equipment, Radio.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Rule Changes
For the reasons set forth in the
preamble, the Federal Communications
Commission amends 47 CFR part 15 as
follows:
I
PART 15—RADIO FREQUENCY
DEVICES
1. The authority citation for part 15
continues to read as follows:
I
Authority: 47 U.S.C. 154, 302, 303, 304,
307, and 554A.
2. Section 15.117 is amended by
revising paragraphs (i)(1)(iii) and (iv)
and by adding paragraph (i)(4) to read
as follows:
I
§ 15.117
TV broadcast receivers.
*
*
*
*
*
(i) * * *
(1) * * *
(iii) Receivers with screen sizes less
than 25″—100% of all such units must
include DTV tuners effective March 1,
2007
(iv) Other video devices
(videocassette recorders (VCRs), digital
video recorders such as hard drive and
DVD recorders, etc.) that receive
television signals—100% of all such
units must include DTV tuners effective
March 1, 2007.
*
*
*
*
*
(4) The requirement to include digital
television reception capability in new
TV broadcast receivers does not apply to
devices such as mobile telephones and
personal digital assistants where such
devices do not include the capability to
receive TV service on the frequencies
allocated for broadcast television
service.
*
*
*
*
*
[FR Doc. 05–24217 Filed 12–20–05; 8:45 am]
BILLING CODE 6712–01–P
20 See
E:\FR\FM\21DER1.SGM
5 U.S.C. 603(a).
21DER1
Agencies
[Federal Register Volume 70, Number 244 (Wednesday, December 21, 2005)]
[Rules and Regulations]
[Pages 75739-75743]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-24217]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 15
[ET Docket No. 05-24; FCC 05-190]
DTV Tuner Requirements
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This document modifies the rules to advance the date on which
new television receivers with certain screen sizes and other TV
receiving devices such as VCRs and digital video recorders, must
include the capability to receive digital television signals forward
four months. This action is intended to further the Commission's
efforts to ensure that consumers are able to receive off-the-air
digital broadcast television services as soon as possible.
DATES: Effective January 20, 2006.
FOR FURTHER INFORMATION CONTACT: Alan Stillwell, Office of Engineering
and Technology, (202) 418-2925, e-mail: Alan.Stillwell@fcc.gov, TTY
(202) 418-2989.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second
Report and Order, ET Docket No. 05-24, FCC 05-190, adopted November 3,
2005 and released November 8, 2005. The full text of this document is
available on the Commission's Internet site at https://www.fcc.gov. It
is also available for inspection and copying during regular business
hours in the FCC Reference Center (Room CY-A257), 445 12th Street, SW.,
Washington, DC 20554. The full text of this document also may be
purchased from the Commission's duplication contractor, Best Copy and
Printing Inc., Portals II, 445 12th St., SW., Room CY-B402, Washington,
DC 20554; telephone (202) 488-5300; fax (202) 488-5563; e-mail
FCC@BCPIWEB.COM.
Congressional Review Act
The Commission will send a copy of this Second Report and Order, in
a report to be sent to Congress and the General Accounting Office
pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
Summary of the Report and Order
1. The Commission modified its rules to advance the date on which
new television receivers with screen sizes 13-24'' and certain other TV
receiving devices such as VCRs and digital video recorders must include
the capability to receive broadcast digital television signals from the
current date of July 1, 2007 to March 1, 2007. The Commission also
amended its rules to apply the digital television reception capability
requirement to new receivers with screen sizes smaller than 13'' on
this same schedule. The DTV reception requirement, which also often is
termed the ``DTV tuner requirement,'' is being implemented under an
approach that applies it first to large screen receivers and then
progressively to smaller screen receivers and other devices over a
period of several years. The modifications made herein affect the final
step of this phase-in plan. With these changes, the scheduled
implementation plan will provide for all new TV receiver equipment to
include digital reception capability as of March 1, 2007.
2. This action follows the Commission's previous decision in the
Report and Order and Further Notice of Proposed Rulemaking (R&O/FNPRM),
70 FR 38800 and 38845, July 6, 2005, in this proceeding to advance the
date on which 100 percent of TV receivers with screen sizes 25-36''
must include digital reception capability to March 1, 2006. In this
regard, the Commission continues to believe that it is essential that
DTV reception capability be provided to consumers in new TV receivers
as rapidly as possible in order to promote an expeditious completion of
the transition from analog to digital broadcast television service.
Consistent with that objective, our goal in this
[[Page 75740]]
further action is to advance the schedule on which all new television
receivers must comply with the DTV tuner requirement. The Commission
concluded that advancing the DTV tuner mandate effective date for 13-
24'' TV sets and other TV receiving devices to March 1, 2007 and
applying this requirement to receivers with screens smaller than 13''
will most effectively ensure that products in these categories are
equipped to receive digital television signals as quickly as possible
consistent with the manufacturing and product distribution capabilities
of manufacturers and retailers.
3. As we have observed previously, consumers must be able to
receive digital TV signals for the transition to move forward to a
successful completion. The DTV tuner requirement is intended to provide
off-the-air DTV reception capability to the general population on a
schedule that will promote a rapid completion of the DTV transition.
Our goal in this matter remains to maximize the number of TV receivers
with DTV tuners on the market, with a final goal that all new
television receiver products include a DTV tuner, as quickly as
possible. We recognize, however, that manufacturers' and retailers'
product development and distribution resources and capabilities will
affect their ability to comply with the tuner requirement and therefore
need to be considered in decisions modifying that requirement.
Receivers 13-24'' and Other TV Receiving Devices
4. Decision. Consistent with the need to promote a rapid and
orderly end to the DTV transition, we continue to believe it is
desirable and appropriate to advance the date by which all new
television receiving equipment must include the capability to receive
over-the-air broadcast DTV signals. The rules already require that all
new large screen receivers and 50 percent of a responsible party's mid-
size receivers include digital reception capability and we recently
advanced the date by which all mid-size receivers must include that
capability by four months, to March 1, 2006. Advancing the date by
which the remaining 13-24'' smaller-size sets and other TV receiver
devices categories must comply with the DTV tuner requirement will
serve to ensure that a greater portion of all TV receiver products that
are in use by consumers at the time analog service ceases will be able
to receive broadcasters' digital signals and thus provide for a smooth
and orderly completion of the switchover process. Commenters observed,
that many consumers do, in fact, rely on a smaller-size set as their
primary device for watching TV service and those consumers will receive
only limited benefits from purchasing new analog-only sets that will
not receive broadcast signals when analog service ceases.
5. Our goal in the R&O/FNPRM with respect to the smaller-size sets
and other TV receiving devices categories was to advance the date by
which these products must include digital reception capability to
December 31, 2006 or earlier, if feasible. In deciding on a new date
for applying the tuner requirement to these products, we need to
consider the ability of manufacturers to produce compliant products as
well as the benefits of including DTV tuners in these products. After
carefully examining the record, the Commission concludes that the
action which most appropriately balances our concerns on both sides of
this matter is to advance the date by which new 13-24'' television sets
and other TV receiver devices must include the capability to receive
broadcast digital television signals to March 1, 2007. From the
information provided by commenters and the participating manufacturers,
we conclude that it may not be feasible for the general population of
receiver manufacturers to produce all of their products in these
categories with DTV tuners at an earlier date. In particular, we
recognize the manufacturers' points that the DTV tuners that will be
included in smaller receivers are not the same units as installed in
larger screen sets, that the design of smaller screen receivers is
changing to flat or thin panel formats, and that the product
development, parts acquisition, manufacturing, distribution, and
marketing processes for new television receiver products are both
technically demanding and complex with multiple steps that must be
completed in succession. We are not adopting Philips' suggestion that
we exempt other TV receiver products from the accelerated date for
compliance with the tuner requirements, as other manufacturers appear
to be able to include DTV tuners in those products by March 1, 2007.
6. The Commission is concerned that if it were to require DTV
reception capability in smaller-size and other TV receiver products
before the general population of manufacturers is able to properly
complete the product development process, it could prove disruptive to
the market for those products. Specifically, we are concerned that such
disruptions could possibly involve deficiencies in the quality of
products marketed so that they would not be acceptable to consumers,
manufacturers deciding to simply leave the market for these products,
or manufacturers just removing broadcast television reception
capability from these products. The Commission does not find that it
would be better to accept the removal of 13-24'' TV sets from the
marketplace or the removal of all television reception capability from
a display device. To do so might pose business costs for manufacturers
in terms of lost sales or possible shut-down of production facilities
that we do not believe are necessary.
7. We also note that the March 1, 2007 date when the industry
indicates that the general population could be ready to produce 13-24''
sets and other TV receiver products with DTV tuners is only two months
beyond our December 31, 2006 proposal. We believe that the benefits of
allowing manufacturers to proceed with the inclusion of DTV tuners in
these products on a more orderly basis would outweigh the adverse
effects of the relatively small number of affected products (as
compared to the hundreds of millions of analog-only receivers currently
in use) that would be brought into the market in the two month period
between December 31, 2006 and March 1, 2007. Upon balancing the
production capabilities of manufacturers and our interests in promoting
a rapid conclusion to the DTV transition, we believe the brief two
month period when new analog-only sets can be brought onto the market
will still allow the return of the 700 MHz spectrum in a timely manner
without overly burdening manufacturers. Accordingly, we are advancing
the date by which television receivers with screen sizes 13-24'' and
other TV receiver devices must include the capability to receive
digital television signals from July 1, 2007 to March 1, 2007.
Receivers With Screen Sizes Less Than 13''
8. In the R&O/FNPRM, the Commission sought comment on whether it
should extend the DTV tuner requirement to apply to receivers with
screen sizes less than 13'' inches. It noted that if such devices are
to provide off-the-air reception of TV signals after the transition,
they too must be able to receive DTV signals and that it is less likely
that very small screen receivers, and particularly handheld and similar
portable devices, would be used with a separate device for receiving
DTV signals.
9. Decision. The Commission finds merit in the concerns that
receivers with screen sizes less than 13'' should also be required to
include DTV reception
[[Page 75741]]
capability. Unlike larger screen receivers, the portable and typically
battery-powered products in this category are more likely to be used to
receive off-the-air signals and to not have inputs for connection to a
separate DTV receiver. Thus, in contrast to larger screen receivers and
other TV receiving devices, it is reasonable to expect that sets with
screen sizes less than 13'' would generally not be useful to consumers
once analog television service ceases. We recognize that these very
small receivers are not typically used as a viewer's primary receiver.
Nonetheless we also note their particular value for enabling the
reception of news and public safety information in times of emergency.
We therefore conclude that it would benefit consumers and the purposes
of the broadcast television service and its transition to digital
operation to require that receivers with screens less than 13'' are
able to receive digital signals on the same schedule as other TV
receiver products. Extending the DTV tuner requirement to receivers
with screen sizes less than 13'' on that schedule will maximize the
number of receivers in this category that will continue to be able to
provide service after analog TV operation ceases. We are not convinced
that it would be overly burdensome for the consumer electronics
industry to bring these products into compliance with the DTV tuner
requirement by the date when all other TV receiver products must
include DTV reception capability. For example, Philips supports
extending the tuner requirement to sets in this category. Because of
the limited usefulness of these products for other purposes after
analog service ends, we believe it would be preferable to restrict the
marketing of products than to continue to allow non-compliant products
to be sold to consumers. Accordingly, we will require that responsible
parties equip television receivers with screens less than 13'' that are
imported into this country or shipped in interstate commerce on and
after March 1, 2007 with the capability to receive broadcast digital
television signals.
10. The Commission agrees with commenters that this extension of
the DTV tuner requirement to very small screen devices should only
apply to products that receive off-the-air broadcasts and not other
types of off-the-air reception devices such as cell phones and personal
digital assistants (PDAs) that do not include the capability to receive
broadcast TV service on the frequencies allocated for that service but
may be able to receive broadcast TV programming that is re-transmitted
over a wireless communications link other than a TV channel. To the
extent that such devices are able to display broadcast TV programming
transmitted over a non-broadcast communications link, we do not
consider a device with that capability to be a broadcast TV receiver.
Therefore, the DTV tuner requirement does not extend to small screen
video capable devices that do not include the ability to receive
broadcast television signals off-the-air. However, in cases where a
cell phone, PDA or similar device does include the capability to
receive TV programming on the channels allocated for the broadcast
television service, that device is a TV broadcast receiver under Sec.
15.3(w) of the rules and must comply with the DTV tuner requirement.
Other Approaches--Labeling Requirements
11. In the R&O/FNPRM the Commission also requested suggestions for
alternative approaches for including DTV reception capability in all
new TV receivers. Chris Llana recommends that as an alternative
approach in conjunction with the DTV tuner requirement the Commission
also require that television receiver products be labeled with enough
information to permit consumers to make a fully informed decision
before purchase and to alert them to the downsides of buying an analog-
only product. He submits that any label should be clear and complete
and that the label should be placed on the screen of TV sets, where it
would draw attention to itself.
12. The Commission believes that consumer awareness of whether a
television can receive off-the-air DTV signals or only off-the-air
analog signals is critical to ensuring that consumer expectations are
met. It also believes that it would further consumer education if
manufacturers and retailers would provide point-of-sale and other
marketing information to consumers and/or clearly label new television
sets. The Commission believes that such efforts would result in more
informed consumer choices about whether to buy DTV tuner equipped sets.
These issues have been raised in the Second DTV Periodic Review, MB
Docket No. 03-15, and we intend to address these issues expeditiously.
In the interim, the Commission encourages manufacturers and retailers
to clearly label and identify the tuning capabilities of new TV sets
and/or employ other means to disseminate to consumers information
regarding whether or not specific models are able to receive off-the-
air digital television signals.
Final Regulatory Flexibility Analysis
13. As required by the Regulatory Flexibility Act of 1980, as
amended (``RFA''),\1\ an Initial Regulatory Flexibility Analysis (IRFA)
was incorporated into the R&O/FNPRM in ET Docket No. 05-24 (Report and
Order and Further Notice). The Commission sought written public comment
on the proposals on the NPRM concerning modification of the plan for
applying the DTV tuner requirement to TV receivers with screen sizes
25-36'', including comment on the IRFA. No comments were received in
response to the IRFA. This Final Regulatory Flexibility Analysis (FRFA)
conforms to the RFA.\2\
---------------------------------------------------------------------------
\1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been
amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (SBREFA), Public Law 104-121, Title II, 110 Stat. 857 (1996).
\2\ See 5 U.S.C. 604.
---------------------------------------------------------------------------
A. Need for and Objectives of the Rules Adopted in the Second
Report and Order. As described in the Second Report and Order and
Further Notice, the changes to the rules adopted in this proceeding are
intended to ensure a smooth transition of the nation's television
system to digital television. Beginning in 1987, the Commission
undertook to bring the most up-to-date technology to broadcast
television.\3\ That effort resulted in several Commission decisions,
including those adopting a digital television (DTV) standard,\4\ DTV
service rules,\5\ and a Table of DTV Allotments.\6\ The Table of DTV
Allotments provides each existing television broadcaster with a second
channel on which to operate a DTV station for a transition period in
which stations will operate both analog and digital TV service, after
which analog service will cease and one of each station's two channels
will revert to the government for use in other services. The transition
deadline established by Congress was December 31, 2006.
---------------------------------------------------------------------------
\3\ See Notice of Inquiry in MM Docket No. 87-268, 2 FCC Rcd
5125 (1987); 52 FR 34259, September 10, 1987, see also Tentative
Decision and Further Notice of Proposed Rulemaking in MM Docket No.
87-268, 3 FCC Rcd 6520 (1988), 53 FR 38747, October 3, 1988.
\4\ See Fourth Report and Order in MM Docket No. 87-268, 11 FCC
Rcd 17771 (1996), 62 FR 14006, March 25, 1997.
\5\ See Fifth Report and Order in MM Docket No. 87-268, 12 FCC
Rcd 12809 (1997), 63 FR 13546, May 20, 1998.
\6\ See Sixth Report and Order in MM Docket No. 87-268, 12 FCC
Rcd 14588 (1997), 62 FR 2668, July 11, 1997.
---------------------------------------------------------------------------
In 2002, consistent with its efforts to promote the expeditious
completion of
[[Page 75742]]
the DTV transition, the Commission adopted a requirement that all new
television receivers imported or shipped in interstate commerce after
July 1, 2007 include the capability to receive DTV signals off-the-air.
In order to minimize the impact of the DTV tuner requirement on both
manufacturers and consumers, the Commission adopted a phase-in schedule
that applies the DTV tuner requirement first to receivers with the
screens and then to progressively smaller screen receivers and other TV
receiving devices. In the R&O/FNPRM, the Commission modified the phase-
in schedule for requiring DTV tuners in new television receiver
products by advancing the date for 100% compliance by receivers with
25-36'' screens to March 1, 2006 from July 1, 2006. In that action, the
Commission concluded that maintaining the 50 percent requirement for
25-36'' receivers for the period from July 1, 2005 to February 28, 2005
and advancing the 100 percent compliance date for mid-size receivers to
March 1, 2006 will ameliorate the concerns of the consumer electronics
manufacturers and retailers with respect to the 50 percent approach and
further its goal of promoting DTV reception availability. In that
action, the Commission also proposed to advance the compliance date for
13-24'' receivers in order to promote a more rapid conclusion to the
digital television transition.
In the Second Report and Order, the Commission revised its rules to
advance the date on which new television receivers with screen sizes
13-24'' and certain other TV receiving devices such as VCRs and digital
video recorders must include the capability to receive broadcast
digital television signals from the current date of July 1, 2007 to
March 1, 2007. The Commission also amends its rules to apply the
digital television reception capability requirement to new receivers
with screen sizes smaller than 13'' on this same schedule. With these
changes, the scheduled DTV tuner implementation plan will require that
all new TV receiver equipment include digital reception capability as
of March 1, 2007. The Commission is taking these steps to ensure that
digital television reception capability is provided to the general
population on a schedule that will promote a rapid completion of the
DTV transition. In this regard, we observe that consumers must be able
to receive digital signals for the transition to move forward to a
successful completion. The Commission's goal in taking the actions in
the Second Report and Order is to maximize the number of TV receivers
on the market, with a final goal that all new television receiver
products include a DTV tuner as quickly as possible. In crafting those
actions, the Commission recognized that manufacturers' product and
distribution resources will affect their ability to comply with the
tuner requirement and balanced those considerations with the need to
ensure that new TV receiver products include DTV tuners.
B. Summary of Significant Issues Raised by Public Comments in
Response to the IRFA: No comments were filed in response to the IRFA.
C. Description and Estimate of the Number of Small Entities to
Which the Proposed Rules Will Apply. The RFA directs the Commission to
provide a description of and, where feasible, an estimate of the number
of small entities that will be affected by the proposed rules.\7\ The
RFA generally defines the term ``small entity'' as having the same
meaning as the terms ``small business,'' ``small organization,'' and
``small governmental entity.'' \8\ In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act.\9\ A small business concern is one which:
(1) Is independently owned and operated; (2) is not dominant in its
field of operation; and (3) satisfies any additional criteria
established by the Small Business Administration (``SBA'').\10\
---------------------------------------------------------------------------
\7\ 5 U.S.C. 603(b)(3).
\8\ 5 U.S.C. 601(6).
\9\ 5 U.S.C. 601(3) (incorporating by reference the definition
of ``small business concern'' in the Small Business Act, 15 U.S.C.
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a
small business applies ``unless an agency, after consultation with
the Office of Advocacy of the Small Business Administration and
after opportunity for public comment, establishes one or more
definitions of such term which are appropriate to the activities of
the agency and publishes such definition(s) in the Federal
Register.''
\10\ 15 U.S.C. 632.
---------------------------------------------------------------------------
Electronics Equipment Manufacturers. Rules adopted in this
proceeding will apply to manufacturers of DTV receiving equipment and
other types of consumer electronics equipment. The SBA has developed
definitions of small entity for manufacturers of audio and video
equipment \11\ as well as radio and television broadcasting and
wireless communications equipment.\12\ These categories include the
types of equipment affected by the rules adopted herein and both
include all such companies employing 750 or fewer employees. However,
these NAICS categories are broad and specific figures are not available
as to how many of these establishments manufacture consumer equipment.
According to the SBA's regulations, an audio and visual equipment
manufacturer must have 750 or fewer employees in order to qualify as a
small business concern.\13\ Census Bureau data indicates that there are
554 U.S. establishments that manufacture audio and visual equipment,
and that 542 of these establishments have fewer than 500 employees and
would be classified as small entities.\14\ The remaining 12
establishments have 500 or more employees; however, we are unable to
determine how many of those have fewer than 750 employees and
therefore, also qualify as small entities under the SBA definition.
Under the SBA's regulations, a radio and television broadcasting and
wireless communications equipment manufacturer must also have 750 or
fewer employees in order to qualify as a small business concern.\15\
Census Bureau data indicates that there 1,215 U.S. establishments that
manufacture radio and television broadcasting and wireless
communications equipment, and that 1,150 of these establishments have
fewer than 500 employees and would be classified as small entities.\16\
The remaining 65 establishments have 500 or more employees; however, we
are unable to determine how many of those have fewer than 750 employees
and therefore, also qualify as small entities under the SBA definition.
We therefore conclude that there are no more than 542 small
manufacturers of audio and visual electronics equipment and no more
than 1,150 small manufacturers of radio and television broadcasting and
wireless communications equipment for consumer/household use.
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\11\ 13 CFR 121.201 (NAICS Code 334310).
\12\ 13 CFR 121.201 (NAICS Code 334220).
\13\ 13 CFR 121.201 (NAICS Code 334310).
\14\ Economics and Statistics Administration, Bureau of Census,
U.S. Department of Commerce, 1997 Economic Census, Industry Series--
Manufacturing, Audio and Video Equipment Manufacturing, Table 4 at 9
(1999). The amount of 500 employees was used to estimate the number
of small business firms because the relevant Census categories
stopped at 499 employees and began at 500 employees. No category for
750 employees existed. Thus, the number is as accurate as it is
possible to calculate with the available information.
\15\ 13 CFR 121.201 (NAICS Code 513220).
\16\ Economics and Statistics Administration, Bureau of Census,
U.S. Department of Commerce, 1997 Economic Census, Industry Series--
Manufacturing, Radio and Television Broadcasting and Wireless
Communications Equipment Manufacturing, Table 4 at 9 (1999). The
amount of 500 employees was used to estimate the number of small
business firms because the relevant Census categories stopped at 499
employees and began at 500 employees. No category for 750 employees
existed. Thus, the number is as accurate as it is possible to
calculate with the available information.
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Computer Manufacturers. The Commission has not developed a
definition of small entities applicable to
[[Page 75743]]
computer manufacturers. Therefore, we will utilize the SBA definition
of electronic computers manufacturing. According to SBA regulations, a
computer manufacturer must have 1,000 or fewer employees in order to
qualify as a small entity.\17\ Census Bureau data indicates that there
are 563 firms that manufacture electronic computers and of those, 544
have fewer than 1,000 employees and qualify as small entities.\18\ The
remaining 19 firms have 1,000 or more employees. We conclude that there
are approximately 544 small computer manufacturers.
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\17\ 13 CFR 121.201 (NAICS Code 334111).
\18\ Economics and Statistics Administration, Bureau of Census,
U.S. Department of Commerce, 1997 Economic Census, Industry Series--
Manufacturing, Electronic Computer Manufacturing, Table 4 at 9
(1999).
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D. Description of Projected Reporting, Recordkeeping and other
Compliance Requirements. The rule changes adopted in the Report and
Order impose no additional recordkeeping or recordkeeping requirements
on manufacturers of television receiving equipment, large or small.
While the modifications adopted therein may have a small impact on
consumer electronics manufacturers, any such impact would be similar
for both large and small entities. We do not believe that the potential
impact on an specified number of small entities outweighs the overall
public interest benefits conferred by of the rule changes adopted in
the Second Report and Order.
E. Steps Taken to Minimize Significant Impact on Small Entities,
and Significant Alternatives Considered. 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.\19\
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\19\ 5 U.S.C. 603(c)(1)-(c)(4).
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The modification of the date for implementing the DTV tuner
requirement in TV receivers with screen sizes in the 13-24'' and under
13'' size ranges and other television receiver products set forth
herein is intended to expedite the availability of DTV tuners in
products in these categories that are offered to consumers. The
consumer electronics industry has indicated that it prefers the DTV
tuner requirement to become effective for 13-24'' receivers and other
television receiver products on March 1, 2007 rather than a date of
December 31, 2006 or earlier as proposed. The Commission also found
that it was necessary to apply the tuner requirement to receivers with
screen sizes less than 13'' in order to ensure that new products in
that category remain functional after the cessation of analog TV
service. Moving the compliance date for these receivers to March 1,
2007 rather than an earlier date will allow the general population of
manufacturers sufficient time to include digital reception capability
in small TV sets and other television receiver products and will also
serve to promote the availability of digital reception capability in
these sets for consumers.
Alternative approaches considered by the Commission, but rejected,
include various suggestions by broadcasters and others to advance the
deadline for DTV tuners in 25-36'' sets to either October 1, 2006 or
November 1, 2006. We rejected these options on the basis that the lead-
times available for product development under those scenarios would be
too short for the general population of manufacturers, including
smaller manufacturers, to bring new compliant products to the market,
especially given the times associated with specification, design,
testing and obtaining parts and components from suppliers. While other
options that would have extended the deadline beyond March 1, 2007 may
have posed less potential impact on manufacturers, including small
business manufacturers, extending the date beyond March 1, 2007 would
be inconsistent with the need to expedite the DTV transition. In its
decision, the Commission balanced the need to ensure that DTV reception
capability is included in new TV receivers as soon as possible with its
concerns for impact on manufacturers, including small manufacturers.
Thus, the plan adopted minimizes the potential impact on small
manufacturers consistent with the Commission's goals for the DTV
reception requirement.
F. Federal Rules Which Duplicate, Overlap, or Conflict With the
Commission's Proposals. None.
Ordering Clauses
14. Pursuant to the authority contained in Sections 2(a), 4(i) &
(j), 7, 151 and 303 of the Communications Act of 1934 as amended, 47
U.S.C. 152(a), 154(i) & (j), 151, 157, and 303, this Second Report and
Order is adopted and the Commission's rules are hereby amended as set
forth in Rule Changes, and shall become effective January 20, 2006.
15. The Commission's Consumer and Governmental Affairs Bureau,
Reference Information Center, shall send a copy of this Second Report
and Order, including the Final Regulatory Flexibility Analysis, to the
Chief Counsel for Advocacy of the Small Business Administration.\20\
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\20\ See 5 U.S.C. 603(a).
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List of Subjects in 47 CFR Part 15
Communications equipment, Radio.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Rule Changes
0
For the reasons set forth in the preamble, the Federal Communications
Commission amends 47 CFR part 15 as follows:
PART 15--RADIO FREQUENCY DEVICES
0
1. The authority citation for part 15 continues to read as follows:
Authority: 47 U.S.C. 154, 302, 303, 304, 307, and 554A.
0
2. Section 15.117 is amended by revising paragraphs (i)(1)(iii) and
(iv) and by adding paragraph (i)(4) to read as follows:
Sec. 15.117 TV broadcast receivers.
* * * * *
(i) * * *
(1) * * *
(iii) Receivers with screen sizes less than 25''--100% of all such
units must include DTV tuners effective March 1, 2007
(iv) Other video devices (videocassette recorders (VCRs), digital
video recorders such as hard drive and DVD recorders, etc.) that
receive television signals--100% of all such units must include DTV
tuners effective March 1, 2007.
* * * * *
(4) The requirement to include digital television reception
capability in new TV broadcast receivers does not apply to devices such
as mobile telephones and personal digital assistants where such devices
do not include the capability to receive TV service on the frequencies
allocated for broadcast television service.
* * * * *
[FR Doc. 05-24217 Filed 12-20-05; 8:45 am]
BILLING CODE 6712-01-P