Maritime Communications, 60067-60075 [06-8655]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 71, Number 197 (Thursday, October 12, 2006)]
[Rules and Regulations]
[Pages 60067-60075]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-8655]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 2 and 80

[WT Docket No. 04-344; FCC 06-108]


Maritime Communications

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Commission designates VHF maritime 
Channels 87B (161.975 MHz) and 88B (162.025 MHz) for Automatic 
Identification Systems (AIS). The designation of Channels 87B and 88B 
for AIS in the United States is consistent with establishment of a 
seamless global AIS framework, and will facilitate the broad, efficient 
and effective implementation of AIS in U.S. territorial waters. The 
intended effect of this action is to maximize the benefits of AIS for 
United States homeland security and maritime safety.

DATES: Effective November 13, 2006.

FOR FURTHER INFORMATION CONTACT: Jeffrey Tobias, Jeff.Tobias@FCC.gov, 
Public Safety and Critical Infrastructure Division, Wireless 
Telecommunications Bureau, (202) 418-0680, or TTY (202) 418-7233.

SUPPLEMENTARY INFORMATION: This is a summary of the Federal 
Communications Commission's Report and Order, FCC 06-108, adopted on 
July 20, 2006, and released on July 24, 2006. The full text of this 
document is available for inspection and copying during normal business 
hours in the FCC Reference Center, 445 12th Street, SW., Washington, DC 
20554. The complete text may be purchased from the Commission's copy 
contractor, Best Copy and Printing, Inc., 445 12th Street, SW., Room 
CY-B402, Washington, DC 20554. The full text may also be downloaded at: 
https://www.fcc.gov. Alternative formats are available to persons with 
disabilities by sending an e-mail to fcc504@fcc.gov or by calling the 
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
    1. In the Report and Order, the Commission affirms its tentative 
conclusion that, in light of current circumstances, the public interest 
would be served by designating Channel 87B for exclusive AIS use on a 
wideband simplex basis. Such an approach would result in both Channel 
87B and the Federal Government Channel 88B being available for AIS use 
in U.S. territorial waters, just as they are used for that purpose 
internationally. Most commenters continue to favor this approach. 
However, MariTEL and a few other commenters oppose the designation of 
Channel 87B for AIS in the wideband simplex mode. These commenters 
contend that the use of duplex channels for AIS in the United States is 
technically feasible and should be preferred over wideband simplex AIS 
operation on Channel 87B because it would cause less disruption to 
existing VPC operations, preserve the efficiency benefits of duplex 
channelization throughout the VPC band, maximize the spectrum available 
for VPC communications, facilitate the implementation of wide-area VPC 
systems, reduce coordination requirements, permit VPC licensees to make 
full use of Channel 87, and minimize AIS interference to and from VPC 
operations. These comments focus primarily on the comparative impact on 
VPC operations of the various AIS channel designation options, but the 
Commission believes it is at least as important, if not more so, to 
consider the impact its decisions herein will have on AIS, a service 
specifically intended to enhance maritime domain awareness and 
navigational safety.
    2. In the Notice of Proposed Rule Making in this proceeding (AIS 
NPRM), the Commission offered a number of reasons why it believed that 
the designation of Channel 87B for domestic AIS use on a wideband 
simplex basis would best promote the widespread, efficient and 
effective use of AIS, and thus the public interest in promoting and 
enhancing homeland security and maritime safety. Neither the comments 
to the AIS NPRM nor anything else in the record of this proceeding 
undermine the Commission's tentative conclusion that it would serve the 
public interest to designate Channel 87B for wideband simplex AIS use 
in the United States. Of critical importance, adoption of the 
Commission's proposal permits seamless worldwide AIS operations. As 
NTIA notes, use of Channels 87B and 88B for AIS communications in U.S. 
territorial waters will facilitate Coast Guard coordination with other 
nations in tracking and monitoring vessels.
    3. In addition, the Commission remains concerned about the negative 
consequences that would arise if it does not designate Channel 87B for 
AIS use in the United States, because vessels on international voyages 
would have to switch from Channel 87B to other channels when entering 
U.S. territorial waters. As the Commission explained in the AIS NPRM, 
requiring vessels to switch channels as they transit an AIS ``fence'' 
between international and U.S. waters would create a risk that AIS 
tracking of such vessels, by both shore stations and other ship 
stations, would be interrupted. This temporary disappearance of vessels 
from AIS screens as they transit the AIS fence increases the risk of 
vessel collisions and creates a potential vulnerability in the Nation's 
maritime domain awareness. MariTEL concedes that the resultant need of 
vessels to switch channels when entering U.S. waters could be 
``problematic,'' but argues that it should not preclude use of duplex 
channels for AIS in the United States. The Commission continues to 
believe that the potential risks of ``losing'' vessels from AIS screens 
when they first enter U.S. territorial waters, especially in busy 
maritime areas where port security is critical, is a significant factor 
disfavoring the use of channels other than Channel 87B for AIS in the 
United States, even if, as MariTEL speculates, foreign vessels would 
eventually ``become accustomed to switching to the U.S. AIS channels 
when they approach U.S. waters.''

[[Page 60068]]

    4. Further, the record is devoid of any party disputing the 
Commission's determination in the AIS NPRM that domestic use of 
Channels 87B and 88B for AIS would facilitate the speedy and efficient 
deployment of AIS, allowing the United States to take full advantage of 
existing AIS standards and infrastructure. Technical standards have 
been established, and equipment has been built and installed, 
domestically and internationally, for AIS operation on Channels 87B and 
88B. The Commission is concerned that the designation of narrowband 
duplex channels for domestic AIS use could preclude reliance on those 
prior standards-setting efforts, and necessitate further technical 
analysis and changes in equipment design, and possibly even a more 
extensive AIS shore infrastructure, to accommodate a unique AIS 
channelization scheme in the United States and the attendant need to 
switch AIS channels when entering U.S. waters. In addition to impeding 
AIS deployment in the United States as a general matter, such an 
approach also could discourage voluntary AIS carriage by, for example, 
recreational boaters, due to higher equipment costs. Moreover, the 
Commission believes, under the circumstances presented, that it is 
reasonable to consider, as part of its public interest analysis, the 
economic impact of a duplex approach on equipment manufacturers, ship 
station licensees and other stakeholders in the maritime community who 
have designed, manufactured, installed or are using (in most cases to 
comply with a statutory carriage requirement) AIS devices that operate 
on Channels 87B and 88B on a wideband simplex basis in reliance on the 
ITU standards. In this connection, the Commission notes that those 
standards have been in existence for several years, have been adopted 
for use not only in international waters but in the territorial waters 
of other nations, and are the only standards that have received any 
widespread acceptance.
    5. Further, AIS operation on wideband channels will provide for 
effective AIS coverage at greater distances due to improved receiver 
sensitivity and frequency modulation discrimination capacity. In 
addition, requiring AIS shore station equipment and Class A AIS ship 
station equipment to operate in wideband mode will ensure the 
interoperability of such equipment with Class B devices. Although 
MariTEL correctly notes the inherent efficiency benefits of duplex 
channelization, the Commission agrees with NTIA that, under the 
circumstances presented, authorizing the use of Channel 87B on a 
simplex basis will, on balance, permit the establishment of more robust 
and effective AIS tracking capability in U.S. waters.
    6. In sum, the Commission believes that AIS is an important tool 
for combating terrorism and a significant advancement in maritime 
navigation technology. Based on the record before us, the Commission is 
persuaded that its promotion and facilitation of AIS deployment will 
save lives, strengthen the integrity of our borders, protect port 
operations that are vital to the United States economy, and promote a 
healthy and secure marine environment. Given the importance of AIS to 
homeland security and maritime safety, the Commission also believes 
that, absent compelling reasons, it should adopt rules that will best 
ensure that AIS is deployed widely, quickly, reliably, and cost-
effectively, and in a manner that will maximize its capabilities. On 
the basis of this record, the Commission believes that this goal can be 
most readily and best achieved by designating Channel 87B to be used 
for AIS on a wideband simplex basis. The Commission therefore amends 
its rules as proposed, and designates Channels 87B and 88B for 
exclusive AIS use.
    7. In addition, the Commission adopts its proposal in the AIS NPRM 
to delete note US223 from the Table of Frequency Allocations if 
Channels 87B and 88B are designated for exclusive AIS use. Note US223 
permits the authorization of maritime public correspondence operations 
on Channel 88 in specified areas within seventy-five miles of the 
Canadian border. Most of the commenters addressing this issue agree 
that it is no longer necessary to retain note US223 once Channel 88B 
has been designated exclusively for AIS in the maritime VPCSAs, 
inasmuch as VPCSAs 1, 5 and 7 completely encompass the areas identified 
in note US223. The Commission is not persuaded by MariTEL's argument 
that elimination of note US223 is inconsistent with MariTEL's retention 
of authority to use Channel 88. Under the rules the Commission adopts 
herein, MariTEL may use only the A side of Channel 88 for public 
correspondence operations, and it is unnecessary to retain note US223 
to authorize such operations since Channel 88A (157.425 MHz) is 
allocated for non-Federal Government maritime mobile use on a primary 
basis. The Commission therefore deletes note US223 as proposed. The 
Commission agrees with MariTEL, however, that it should modify the 
table in Sec.  80.371(c) of the Commission's rules only to reflect that 
Channels 87 and 88 may be used for radiotelephony in simplex mode, in 
keeping with the Commission's proposal in the AIS NPRM, rather than 
completely delete Channels 87 and 88 from the table. The Commission 
invited comment on the latter option as an alternative to its proposed 
amendment. MariTEL, the only commenter addressing this precise issue, 
correctly observes that eliminating Channels 87 and 88 from the table 
would be inconsistent with the fact that Channel 87A and, subject to 
the aforementioned limitations, Channel 88A can still be used for VPC 
service.
    8. The Commission continues to believe that the interference impact 
of wideband simplex AIS on VPC operations can be effectively mitigated 
through commercially reasonable means. Accordingly, the Commission 
concludes that there is no need to adopt additional AIS interference 
abatement requirements. Even if simplex wideband AIS operations pose a 
greater interference challenge than duplex narrowband AIS operations, 
the Commission does not believe that extraordinary measures are 
necessary to overcome it. The record in this proceeding confirms that 
the use of forward error correction (FEC) techniques with soft decision 
decoding mitigates interference from AIS. The Commission also continues 
to believe that VPF Public Coast (VPC) station licensees would be 
required to employ FEC and interleaving even in the absence of AIS to 
correct errors due to signal fading. In support of this belief, the 
Commission notes that FEC and interleaving techniques are commonly used 
in other services and technologies, such as the Project 25 technology 
utilized by some public safety licensees. While the degree of error 
correction in the commercially available radio equipment MariTEL has 
thus far investigated may not meet its quality-of-service requirements, 
the technology is nonetheless available, as indicated in the comments.
    9. In addition, while the Commission understands the desirability 
of limiting the amount of adjacent channel interference to VPC 
stations, it notes that the International Electrotechnical Commission 
(IEC) AIS emissions mask is in fact more stringent than the emissions 
mask applicable to other part 80 devices. In addition, the IEC AIS mask 
in the 25 kHz mode is more stringent than the equivalent part 90 mask. 
Therefore, since the AIS emission limits already are more stringent 
than the normally applicable part 80 or part 90 emission limits, the 
Commission does not believe it necessary to impose additional technical 
requirements to

[[Page 60069]]

further reduce AIS emissions under the circumstances presented.
    10. The Commission continues to encourage the Coast Guard and 
MariTEL, as well as other VPC licensees, to cooperate on identification 
and implementation of effective interference mitigation measures, but 
it remains unconvinced that it should condition the use of Channel 87B 
for AIS on the Coast Guard's assumption of specific interference 
mitigation obligations. MariTEL propounds a number of such conditions 
as alternative means of allowing the use of Channel 87B for AIS in a 
manner that MariTEL deems sufficiently protective of its interests. 
MariTEL requests, for example, that the Commission require the Coast 
Guard to negotiate with MariTEL and incumbent licensees regarding 
interference protection, and to require an agreement among the parties 
before any rule designating Channel 87B for AIS becomes effective. The 
Commission thinks these approaches are both unnecessary, given its 
conclusions regarding the extent and remediability of AIS interference, 
and problematic. In this regard, the Commission is concerned that 
mandatory negotiations regarding interference protection would be no 
more successful than, and would have the same drawbacks as, mandatory 
negotiations over the designation of channels for AIS. It therefore 
declines to condition the designation of Channel 87B for AIS on the 
Coast Guard's successful completion of interference abatement 
negotiations with MariTEL and other VPC licensees for the same reasons 
that impelled us to reject another round of negotiations over the AIS 
channel designation. The Commission also declines to adopt MariTEL's 
alternative suggestion that any designation of Channel 87B for AIS be 
conditioned on demonstrating to MariTEL's satisfaction that it will be 
able to operate free of AIS interference. Following such an approach 
would give MariTEL the effective ability to veto AIS deployment on 
Channel 87B and could result in the same delay and uncertainty that 
would attend further negotiations. Moreover, even if the Commission 
were to agree with MariTEL's assessment of the interference threat 
posed by AIS, it still would be reluctant to make actions that would 
promote homeland security and public safety contingent upon a private 
entity's approbation.
    11. Similarly, the Commission will not accept MariTEL's offer to 
forgo its objections to the reallocation of Channel 87B for AIS if the 
Commission adopts regulations that affirmatively require the Coast 
Guard to cure to MariTEL's satisfaction all interference to its VPC 
operations caused by the use of AIS devices on Channel 87B. MariTEL has 
failed to demonstrate that such extraordinary relief is warranted here 
and would further the public interest without adversely affecting 
homeland security and maritime safety. Moreover, such a requirement 
would be extremely difficult to craft and enforce. Most seriously, 
adoption of this MariTEL proposal raises the specter of shutting down 
AIS, thus creating a large vulnerability in our national security.
    12. The Commission concludes that it would not serve the public 
interest to adopt the ``Sharing Proposal'' submitted by MariTEL because 
it appears that MariTEL still views a reexamination and revision of the 
AIS equipment certification standards as an integral component of the 
``Sharing Proposal.'' The Commission believes, however, that it would 
be counterproductive to reconsider the AIS equipment standards. To do 
so would not only create problems for international AIS 
interoperability and coordination, but would also retard, possibly even 
freeze, AIS deployment efforts in this country, and could also 
necessitate retrofitting vessels that have already installed AIS 
equipment meeting the current international and FCC requirements.
    13. The Commission affirms its tentative conclusion in the AIS NPRM 
that there is no basis in public policy or equity to compensate MariTEL 
in conjunction with the designation of Channels 87B and 88B for AIS on 
a wideband simplex basis. MariTEL contends, as it has consistently 
throughout this proceeding, that the Commission should require the 
Coast Guard to compensate it for harmful interference if the Commission 
adopts its AIS channel designation proposal. MariTEL asserts that 
failing to take such action would, for the first time, strip the winner 
of an FCC auction of the right to the spectrum it purchased in that 
auction, and that such action would be inequitable and contrary to 
public policy. The Commission disagrees for a number of reasons. Most 
importantly, the Commission do not believe that wideband simplex AIS 
operations on Channels 87B and 88B will unreasonably burden MariTEL's 
use of its licensed VPC spectrum. Even if such wideband simplex AIS 
operations were to present new challenges to the launch of a data 
network on the maritime VPCSA channels, the Commission does not believe 
that those challenges cannot be surmounted, and does not believe they 
are of such magnitude as to warrant special compensation to maritime 
VPCSA licensees. As the Commission indicated in the AIS NPRM, moreover, 
licensees who acquire their licenses at auction do not have a vested 
right to the continuation without change of the rules in effect at the 
time of the auction. Auction bidders are on notice, based on clear 
statutory language and judicial precedent, that the Commission retains 
the power to alter the terms of existing licenses (whether or not 
acquired through competitive bidding) through rulemaking, should the 
public interest so warrant.
    14. The Commission believes that it would be beneficial and prudent 
to augment the record on the important question of whether to expand 
the exclusive use of Channel 87B for AIS beyond the nine maritime VPC 
service areas (VPCSAs), as initially contemplated, before taking final 
action on this issue. NTIA's request for a nationwide AIS allocation is 
now based to a significant degree on the need to protect satellite AIS 
systems, but NTIA advanced this justification for the first time in its 
comments to the AIS NPRM. As a result, the existing record provides 
almost no information regarding the technical feasibility, 
effectiveness or potential benefits of satellite AIS, and no studies or 
analysis of potential interference to and from satellite AIS. The 
Commission is not convinced, based on the current record, that it 
should depart from its earlier determinations limiting the scope of the 
AIS set-aside. On the other hand, neither does the Commission believe 
that it can affirm its tentative conclusion in the AIS NPRM, that the 
public interest would not be served by extending AIS use of Channel 87B 
to inland areas, without further review of this new development. It 
appears that satellite AIS may significantly expand the range at which 
vessels may be effectively identified and tracked. Such an expansion of 
AIS vessel tracking capabilities could promote and enhance maritime 
domain awareness. Accordingly, the Commission invites comment in a 
Further Notice of Proposed Rule Making on issues pertaining to 
satellite AIS, and further comment more generally on the geographic 
scope of the AIS set-aside.
    15. The Commission believes, at this juncture, that Channel 87B can 
continue to be used for AIS on a shared basis with the limited group of 
site-based incumbent VPC stations in the maritime VPCSAs, but that the 
channel should ultimately be cleared for exclusive AIS use. The 
Commission is not persuaded that it is necessary to clear Channel 87B 
of site-based VPC stations immediately, as requested by NTIA, but 
neither will it require that AIS operate on a non-

[[Page 60070]]

interference basis to such stations, as ShipCom essentially urges 
(unless the incumbents receive compensation). Although ShipCom contends 
that it is impossible for site-based VPC operations to co-exist with 
AIS on Channel 87B, neither ShipCom nor NTIA (nor any other party) has 
brought to the Commission's attention any present examples of real-
world VPC/AIS interference, notwithstanding that AIS has been operating 
on Channel 87B for several years now. The Commission also believes that 
ShipCom, like MariTEL, is incorrect in asserting that it is practically 
impossible to overcome AIS interference, in this case co-channel as 
well adjacent channel interference. In addition, the Commission is 
likewise unaware of any actual interference to AIS transmissions from 
these VPC operations, and it believes that AIS will be able to operate 
effectively notwithstanding the continued use of Channel 87B for a 
limited period of time by a very few, highly localized VPC stations.
    16. However, the Commission also believes that to ensure the 
integrity of AIS in the long run, Channel 87B should be cleared of all 
site-based VPC and private land mobile radio (PLMR) operations over 
time through the non-renewal of any license authorizing such operation 
on Channel 87B in a maritime VPCSA. The Commission accordingly adds a 
new footnote to Sec.  80.373(c)(1)(i) of the rules to provide that no 
site-based authorization to operate on Channel 87B in a maritime VPCSA 
will be renewed after this Report and Order takes effect. Operation of 
PLMR stations authorized to use Channel 87B on a secondary basis must 
cease immediately if it causes harmful interference to AIS that the 
licensee is unable to remedy.

I. Procedural Matters

A. Paperwork Reduction Act Analysis

    17. The action contained herein has been analyzed with respect to 
the Paperwork Reduction Act of 1995 (PRA) and found to impose no new or 
modified reporting or recordkeeping requirements or burdens to the 
public, including businesses with fewer than 25 employees.

B. Report to Congress

    18. The Commission will send a copy of this 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).

C. Final Regulatory Flexibility Analysis

    19. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the Notice of Proposed Rule Making in this proceeding 
(AIS NPRM). The Commission sought written public comment on the 
proposals in the AIS NPRM, including comment on the IRFA. This present 
Final Regulatory Flexibility Analysis (FRFA) conforms to the RFA.
Need for, and Objectives of, the Report and Order
    20. The rules adopted in the Report and Order are intended to 
identify spectrum to be used for maritime Automatic Identification 
Systems (AIS) in the United States and its territorial waters. AIS is 
an important tool for enhancing maritime safety and homeland security, 
and the Commission had been concerned that certain developments in 
recent years, such as the termination of the Memorandum of Agreement 
between the U.S. Coast Guard and MariTEL, Inc. regarding the set-aside 
of channels for AIS, and the various petitions and pleadings filed by 
NTIA and MariTEL following that termination, may have created 
uncertainty in the maritime community regarding the very high frequency 
(VHF) channels to be used for AIS, and that this in turn could impede 
efforts to expedite the broad deployment of AIS domestically. In the 
Report and Order, we designate VHF maritime Channels 87B and 88B for 
AIS use domestically, in keeping with the international allocation of 
those channels for AIS, because we believe the use of those channels 
will best ensure that the United States can maximize the maritime 
safety and homeland security benefits of AIS. The use of VHF maritime 
Channels 87B and 88B for domestic AIS use will, inter alia, permit U.S. 
participation in a seamless global AIS network, avoid the problems that 
would inhere in requiring vessels to switch AIS channels when 
transiting an AIS ``fence'' between international and U.S. territorial 
waters, facilitate speedy AIS deployment using existing technical 
standards and infrastructure, and provide for AIS coverage at greater 
distances than would otherwise be possible.
Summary of Significant Issues Raised by Public Comments in Response to 
the IRFA
    21. No comments were submitted specifically in response to the 
IRFA. However, some commenters, including two VHF Public Coast (VPC) 
station licensees, MariTEL, Inc. (MariTEL) and ShipCom LLC (ShipCom), 
contend that the interference impact of wideband simplex AIS operations 
on Channels 87B and 88B would be of such magnitude as to effectively 
preclude VPC licensees from being able to make commercially reasonable 
use of their licensed spectrum. As discussed in detail in Section E of 
this FRFA, we have considered the potential economic impact on small 
entities of these rules, and we have considered alternatives that would 
reduce the potential economic impact on small entities of the rules 
enacted herein, regardless of whether the potential economic impact was 
discussed in any comments.
Description and Estimate of the Number of Small Entities to Which Rules 
Will Apply
    22. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted. The RFA defines the term 
``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A small business concern is one which: (1) is independently owned 
and operated; (2) is not dominant in its field of operation; and (3) 
satisfies any additional criteria established by the Small Business 
Administration (SBA).
    23. Small businesses in the aviation and marine radio services use 
a very high frequency (VHF) marine or aircraft radio and, as 
appropriate, an emergency position-indicating radio beacon (and/or 
radar) or an emergency locator transmitter. The Commission has not 
developed a small business size standard specifically applicable to 
these small businesses. For purposes of this analysis, the Commission 
uses the SBA small business size standard for the category ``Cellular 
and Other Wireless Telecommunications,'' which is 1,500 or fewer 
employees. Between December 3, 1998 and December 14, 1998, the 
Commission held an auction of 42 VHF Public Coast (VPC) licenses in the 
157.1875-157.4500 MHz (ship transmit) and 161.775-162.0125 MHz (coast 
transmit) bands. For purposes of the auction, the Commission defined a 
``small'' business as an entity that, together with controlling 
interests and affiliates, has average gross revenues for the preceding 
three years not to exceed fifteen million dollars. In addition, a 
``very small'' business is one that,

[[Page 60071]]

together with controlling interests and affiliates, has average gross 
revenues for the preceding three years not to exceed three million 
dollars. There are approximately 10,672 licensees in the Marine Coast 
Service, and the Commission estimates that almost all of them qualify 
as ``small'' businesses under the above special small business size 
standards.
Description of Projected Reporting, Recordkeeping, and Other Compliance 
Requirements for Small Entities
    24. There are no projected reporting, recordkeeping or other 
compliance requirements. However, some commenters contend that the 
Report and Order may have a significant economic impact on VPC 
licensees because of the potential interference impact on their 
operations of designating VHF maritime Channels 87B and 88B for 
exclusive AIS use on a wideband simplex basis within the nine maritime 
VPC service areas (VPCSAs).
Steps Taken To Minimize the Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered
    25. The RFA requires an agency to describe any significant 
alternatives that it has considered in developing its 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 and reporting requirements under the rule for such 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 
such small entities.''
    26. In the IRFA of the AIS NPRM, the Commission described, and 
sought comment on, possible alternatives to the Commission's proposal 
for the designation of Channels 87B and 88B for AIS that might minimize 
the economic impact on small entities. First, the Commission asked 
commenters to consider the interference impact on MariTEL, licensee of 
the nine maritime VPC service areas, or on any incumbent site-based VPC 
licensees or any Economic Area (EA) VPC licensees, of the proposed 
designation of Channels 87B and 88B for AIS exclusively. The Commission 
noted that it had tentatively concluded that the proposed designation 
of Channels 87B and 88B for AIS should not have an adverse effect on 
MariTEL's use of its VPC channels to a materially greater extent, if at 
all, than would designation of two narrowband offset channel pairs of 
the Commission's choosing from the 156-162 MHz VHF maritime band. The 
Commission noted that it had requested comment on this tentative 
conclusion, and had also asked commenters to consider if incumbent 
site-based VPC operations can co-exist on a non-interference basis with 
AIS and, if not, whether the Commission should require that these 
operations be migrated to other spectrum and/or that the licensees be 
compensated in some way.
    27. Commenters were requested to identify potential means of 
minimizing or eliminating any adverse economic impact on any small 
entities, particularly VPC licensees that qualify as small entities, if 
Channels 87B and 88B are designated for AIS use. The Commission 
suggested that such means might include, for example, exemptions, 
grandfathering protection, or geographic limitations on the use of 
Channels 87B and 88B for AIS. The Commission also stated, inter alia, 
that commenters could recommend that the Commission designate channels 
other than Channels 87B and 88B for AIS use in the United States as a 
means of minimizing any adverse economic impact on these licensees. The 
Commission noted, however, that mandating use of channels other than 
Channels 87B and 88B for AIS use in the United States could have an 
adverse economic impact on vessel operators and radio equipment 
manufacturers that qualify as small entities by, for example, 
increasing the cost of AIS equipment, causing premature obsolescence of 
AIS equipment already installed on vessels, or leaving manufacturers 
with stranded inventory. Accordingly, commenting parties, and 
particularly commenting parties who favor adopting an alternative to 
the Commission's proposal, were asked to address the potential economic 
impact of that alternative on small entities. In addition, the 
Commission specifically invited site-based incumbent licensees that 
operate within VHF Public Coast Service Areas (VPCSAs) 1-9 on Channel 
87B or Channel 88B to suggest alternatives or additions to the 
Commission's proposal that would minimize any significant economic 
impact on them. Finally, the Commission also noted that there are 
incumbent licensees operating on the specified channels in inland 
areas. The Commission said it did not anticipate any significant 
adverse effect on any such licensee due to the geographic limitations 
of its proposal, i.e., its tentative determination to limit the AIS 
set-aside to areas near major navigable waterways. Commenters who 
believed differently were asked to describe the expected adverse 
economic impact on incumbent inland licensees operating on these or 
adjacent channels, and to provide suggested methods of minimizing any 
such impact. The Commission noted that, although it was proposing only 
to designate Channels 87B and 88B for AIS in the nine maritime VPCSAs, 
it was not foreclosing the possibility of designating those channels 
for AIS on a nationwide basis, and it therefore requested inland 
licensees and other interested parties to address the possible economic 
impact on small entities if the Commission were to designate Channels 
87B and 88B for AIS in inland areas as well as the nine maritime 
VPCSAs.
    28. Although we received no comments specifically addressed to the 
IRFA for the AIS NPRM, we have considered all comments to the AIS NPRM 
addressing the impact of any proposed change on small entities and all 
suggestions for alternative measures that would have a less significant 
impact on small entities. In particular, we have addressed comments 
regarding the impact on VPC licensees of designating Channels 87B and 
88B for AIS on a wideband simplex basis. We have considered the 
possibility of designating two narrowband duplex channel pairs for AIS 
in lieu of Channel 87B, because commenters argued that VPC licensees 
would not incur as great a level of interference from narrowband duplex 
AIS as they would from wideband simplex AIS. We have determined not to 
designate narrowband duplex channels for AIS in lieu of Channel 87B 
because doing so would compromise the effectiveness of AIS as a tool in 
the service of homeland security and maritime safety. Because both 
international bodies and other nations operate AIS on a wideband 
simplex basis on Channels 87B and 88B, the designation of narrowband 
duplex channels for AIS in the United States would preclude creation of 
a seamless global AIS network; limit and complicate the ability of the 
Coast Guard to coordinate with maritime safety organizations in other 
nations; result in AIS coverage gaps when vessels transit an AIS 
``fence'' between international and U.S. territorial waters; delay 
domestic AIS deployment efforts; discourage voluntary carriage of AIS 
equipment; and reduce the distances at which vessels may be tracked. In 
addition, the designation of narrowband duplex channels for AIS would 
likely

[[Page 60072]]

harm more small entities than it would benefit, because it could leave 
small manufacturers of marine radio equipment with stranded inventory, 
and require small entities that own or operate vessels to refit those 
vessels with new AIS equipment.
    29. We also have considered a proposal by MariTEL that would permit 
MariTEL to share use of Channel 87B in what MariTEL deems a 
commercially advantageous manner. We have rejected this MariTEL Sharing 
Proposal for two reasons. First, it includes as an integral component 
the Commission's agreement to revisit and revise the rules governing 
certification of AIS equipment. We have concluded that it would 
disserve the public interest to adopt AIS equipment certification 
requirements that diverge from the international requirements. An 
attempt to devise new, U.S.-specific AIS equipment standards at this 
juncture would engender many of the same problems that would attend 
designation of AIS channels other than Channels 87B and 88B for use in 
the United States. Second, the Sharing Proposal contemplates the 
Commission's imposition and enforcement of restrictions on the ability 
of entities other than MariTEL to make commercial use of AIS data. We 
have concluded that, even if the Commission had authority to impose and 
enforce such restrictions, its exercise would be administratively 
burdensome.
    30. In making all of the above policy determinations, we have 
weighed in the balance the interference impact of wideband simplex AIS 
on MariTEL and the other VPC licensees. We have concluded that whatever 
harmful interference may be caused to VPC operations by wideband 
simplex AIS transmissions, it can be effectively mitigated through 
commercially reasonable means, such as forward error correction (FEC) 
coding, and block interleaving. Based on that determination, as well as 
a determination that there is no legal theory through which the 
Commission could provide compensation to VPC licensees in any event, 
the Commission has declined to provide for compensation to any VPC 
licensee based on predictions of the interference impact of AIS.
    31. As a measure to minimize the potential economic impact of its 
decision herein on site-based incumbent VPC licensees, some of which 
may be small entities, we have determined not to require such licensees 
to immediately terminate use of Channel 87B in order to clear the 
spectrum for AIS. Instead, we are providing that such licensees may 
continue to operate on Channel 87B for the remainder of their current 
license terms, but also that no such license will be renewed for 
operation on Channel 87B. This provides what is in effect 
grandfathering protection for site-based incumbent licensees for a 
period of several years, with the precise termination date based on 
their current authorizations. In reaching this determination, we have 
considered that site-based incumbent VPC licensees, unlike maritime 
VPCSA licensees, were not subject to any pre-existing requirement to 
set aside spectrum for AIS.
    32. Finally, we have determined to augment the record with 
additional comments to better inform a decision as to whether the 
designation of Channel 87B for AIS should be nationwide in scope or 
just limited to the nine maritime VPCSAs. We discuss this matter in the 
Further Notice of Proposed Rule Making (Further Notice) in this 
proceeding and the accompanying Initial Regulatory Flexibility Analysis 
of the Further Notice, infra.

D. Report to Congress

    33. The Commission will send a copy of this Report and Order in WT 
Docket No. 04-344, including the Final Regulatory Flexibility Analysis, 
in a report to be sent to Congress pursuant to the Congressional Review 
Act. In addition, the Commission will send a copy of the Report and 
Order, including the Final Regulatory Flexibility Analysis, to the 
Chief Counsel for Advocacy of the SBA. A copy of the Report and Order 
and the Final Regulatory Flexibility Analysis (or summaries thereof) 
will also be published in the Federal Register.

List of Subjects in 47 CFR Parts 2 and 80

    Communications, Radio.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Rule Changes

0
For the reasons discussed in the preamble, the Federal Communications 
Commission amends 47 CFR parts 2 and 80 as follows:

PART 2--FREQUENCY ALLOCATIONS AND RADIO TREATY MATTERS; GENERAL 
RULES AND REGULATIONS

0
1. The authority citation for part 2 continues to read as follows:

    Authority: 47 U.S.C. 154, 302a, 303, and 336, unless otherwise 
noted.


0
2. Section 2.106, the Table of Frequency Allocations, is amended as 
follows:
0
a. Revise page 21.
0
b. In the list of United States (US) Notes remove footnote US223 and 
add footnote US399.
    The revisions and additions read as follows:


Sec.  2.106  Table of Frequency Allocations.

* * * * *
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[[Page 60073]]

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[[Page 60074]]

UNITED STATES (US) NOTES
* * * * *
    US399 Except as indicated below, the frequency bands 161.9625-
161.9875 MHz (AIS 1 with its center frequency at 161.975 MHz) and 
162.0125-162.0375 MHz (AIS 2 with its center frequency at 162.025 MHz) 
are allocated to the maritime mobile service on a primary basis for 
Federal Government and non-Federal Government use, and shall be used 
exclusively for Automatic Identification Systems. However, in VHF 
Public Coast Station Areas (VPCSAs) 1-9, site-based VHF Public Coast 
stations licensed prior to [effective date of this order] may continue 
to operate on a co-primary basis in the frequency band 161.9625-
161.9875 MHz until expiration of the license term for licenses in 
active status as of [effective date of this order], and in VPCSAs 10-
42, the band 161.9625-161.9875 MHz is allocated to the maritime mobile 
service on a primary basis for exclusive non-Federal Government use. 
See 47 CFR 80.371(c)(1)(ii) for the definitions of VPCSAs.
* * * * *

PART 80--STATIONS IN THE MARITIME SERVICES

0
3. The authority citation for part 80 continues to read as follows:

    Authority: Secs. 4, 303, 307(e), 309, and 332, 48 Stat. 1066, 
1082, as amended; 47 U.S.C. 154, 303, 307(e), 309, and 332, unless 
otherwise noted. Interpret or apply 48 Stat. 1064-1068, 1081-1105, 
as amended; 47 U.S.C. 151-155, 301-609; 3 UST 3450, 3 UST 4726, 12 
UST 2377.


0
4. Section 80.5 is amended by adding a definition for ``Automatic 
Identification Systems (AIS)'', in alphabetical order, to read as 
follows:


Sec.  80.5  Definitions.

* * * * *
    Automatic Identification Systems (AIS). A maritime navigation 
safety communications system standardized by the International 
Telecommunication Union (ITU) and adopted by the International Maritime 
Organization (IMO) that provides vessel information, including the 
vessel's identity, type, position, course, speed, navigational status 
and other safety-related information automatically to appropriately 
equipped shore stations, other ships, and aircraft; receives 
automatically such information from similarly fitted ships; monitors 
and tracks ships; and exchanges data with shore-based facilities.
* * * * *

0
5. Section 80.13 is amended by revising paragraph (c) to read as 
follows:


Sec.  80.13  Station license required.

* * * * *
    (c) A ship station is licensed by rule and does not need an 
individual license issued by the FCC if the ship station is not subject 
to the radio equipment carriage requirements of any statute, treaty or 
agreement to which the United States is signatory, the ship station 
does not travel to foreign ports, and the ship station does not make 
international communications. A ship station licensed by rule is 
authorized to transmit radio signals using a marine radio operating in 
the 156-162 MHz band, any type of AIS, any type of EPIRB, and any type 
of radar installation. All other transmissions must be authorized under 
a ship station license. Even though an individual license is not 
required, a ship station licensed by rule must be operated in 
accordance with all applicable operating requirements, procedures, and 
technical specifications found in this part.

0
6. Section 80.371 is amended by revising paragraphs (c)(1)(i), (c)(2) 
and (c)(3) to read as follows:


Sec.  80.371  Public correspondence frequencies.

* * * * *
    (c) * * *
    (1)(i) The frequency pairs listed in the following table are 
available for assignment to public coast stations for public 
correspondence communications with ship stations and units on land.

       Working Carrier Frequency Pairs in the 156-162 MHz Band \1\
------------------------------------------------------------------------
                                                     Carrier frequency
                                                           (MHz)
               Channel designator                -----------------------
                                                     Ship        Coast
                                                   transmit    transmit
------------------------------------------------------------------------
24..............................................     157.200     161.800
84..............................................     157.225     161.825
25..............................................     157.250     161.850
85 \2\..........................................     157.275     161.875
26..............................................     157.300     161.900
86..............................................     157.325     161.925
27..............................................     157.350     161.950
87 \4\ \5\......................................     157.375     161.975
28..............................................     157.400     162.000
88 \3\..........................................     157.425    162.025
------------------------------------------------------------------------
\1\ For special assignment of frequencies in this band in certain areas
  of Washington State, the Great Lakes and the east coast of the United
  States pursuant to arrangements between the United States and Canada,
  see subpart B of this part.
\2\ The frequency pair 157.275/161.875 MHz is available on a primary
  basis to ship and public coast stations. In Alaska it is also
  available on a secondary basis to private mobile repeater stations.
\3\ Within that portion of VHF Public Coast Station Areas (VPCSAs) 1
  through 9 listed in the table in paragraph (c)(1)(ii) of this section
  within 120 km (75 miles) of the United States/Canada border, in the
  area of the Great Lakes, the Saint Lawrence Seaway, and the Puget
  Sound and the Strait of Juan de Fuca and its approaches, Maritime VHF
  Channel 88A (157.425 MHz) is available for use for public
  correspondence communications, subject to prior coordination with
  Canada. Maritime VHF Channel 88B (162.025 MHz) is available only for
  Automatic Identification System communications. One hundred twenty
  kilometers (75 miles) from the United States/Canada border 157.425 MHz
  is available for intership and commercial communications. Outside the
  Puget Sound area and its approaches and the Great Lakes, 157.425 MHz
  is available for communications between commercial fishing vessels and
  associated aircraft while engaged in commercial fishing activities.
\4\ Within VHF Public Coast Station Areas (VPCSAs) 1 through 9 listed in
  the table in paragraph (c)(1)(ii) of this section, Maritime VHF
  Channel 87B (161.975 MHz) may be used only for Automatic
  Identification System communications.
\5\ No license authorizing a site-based VHF Public Coast Station or a
  Private Land Mobile Radio Station to operate on maritime VHF Channel
  87B (161.975 MHz) in one of the nine maritime VHF Public Coast Service
  Areas (VPCSAs) listed in the table in paragraph (c)(1)(ii) will be
  renewed unless the license is or has been modified to remove Channel
  87B as an authorized frequency.

* * * * *
    (2) Any recovered channel pairs will revert automatically to the 
holder of the VPCSA license within which such channels are included, 
except the channel pairs listed in the table in paragraph (c)(1)(i) of 
this section. Those channel pairs, and any channel pairs recovered 
where there is no VPCSA licensee, will be retained by the Commission 
for future licensing.
    (3) VPCSA licensees may not operate on Channel 228B (162.0125 MHz), 
which is available for use in the Coast Guard's Ports and Waterways 
Safety System (PAWSS). In addition, VPCSA licensees in VPCSAs 1-9 may 
not operate on Channel AIS 1 (161.975 MHz) or Channel AIS 2 (162.025 
MHz), which are designated in those areas exclusively for Automatic 
Identification Systems (AIS), except to transmit and receive AIS 
communications to the same extent, and subject to the same limitations, 
as other shore stations participating in AIS.
* * * * *

0
7. Section 80.373 is amended by revising paragraph (j) to read as 
follows.


Sec.  80.373  Private communications frequencies.

* * * * *
    (j) Frequencies for portable ship stations. VHF frequencies 
authorized for stations authorized carrier frequencies in the 156.275 
MHz to 157.450 MHz and 161.575 MHz to 162.025 MHz bands

[[Page 60075]]

may also be authorized as marine utility stations. Marine-utility 
stations on shore must not cause interference to any Automatic 
Identification System, VHF or coast station, VHF or UHF land mobile 
base station, or U.S. Government station.

0
8. Section 80.393 is added to subpart H to read as follows:


Sec.  80.393  Frequencies for AIS stations.

    Automatic Identification Systems (AIS) is a maritime broadcast 
service. The simplex channels at 161.975 MHz (AIS 1) and 162.025 MHz 
(AIS 2), each with a 25 kHz bandwidth, may be authorized in VHF Public 
Coast Station Areas 1-9 for AIS, and the frequency 162.025 MHz (AIS 2) 
also may be authorized in VHF Public Coast Station Areas 10-42 for AIS. 
The VHF Public Coast Station Areas are codified at 47 CFR 
80.371(c)(1)(ii). In accordance with the Maritime Transportation 
Security Act, the United States Coast Guard regulates AIS carriage 
requirements for non-Federal Government ships. These requirements are 
codified at 33 CFR 164.46, 401.20.

[FR Doc. 06-8655 Filed 10-11-06; 8:45 am]
BILLING CODE 6712-01-P