DTV Consumer Education Initiative, 28727-28733 [E8-11156]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 73, Number 97 (Monday, May 19, 2008)]
[Rules and Regulations]
[Pages 28727-28733]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-11156]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 15 and 54

[MB Docket No. 07-148; FCC 08-119]


DTV Consumer Education Initiative

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Commission reconsider in part, sua 
sponte, our March 3, 2008, decision in this proceeding, in which we 
adopted digital television (DTV) transition consumer education and 
outreach requirements for a number of industry participants, and 
clarify some of those requirements. In this Order, the Commission 
modifies our requirements regarding the timing, scope, and content of 
manufacturer notices and the method of delivery of ETC notices, and 
clarifies other manufacturer requirements.

DATES: Effective May 30, 2008.

ADDRESSES: Federal Communications Commission, 445 12th Street, SW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: For more information on this 
proceeding, please contact Lyle Elder, Lyle.Elder@fcc.gov, or Eloise 
Gore, Eloise.Gore@fcc.gov, of the Media Bureau, Policy Division, (202) 
418-2120. For additional information concerning the Paperwork Reduction 
Act information collection requirements contained in this document, 
contact Cathy Williams on (202) 418-2918, or via the Internet at 
PRA@fcc.gov.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order 
of Reconsideration (Order) in MB Docket No. 07-148, FCC 08-119, adopted 
April 23, 2008 and released April 23, 2008. The full text of this 
document is available for public inspection and copying during regular 
business hours in the FCC Reference Center, Federal Communications 
Commission, 445 12th Street, SW., CY-A257, Washington, DC 20554. These 
documents will also be available via ECFS (https://www.fcc.gov/cgb/ecfs/
). (Documents will be available electronically in ASCII, Word 97, and/
or Adobe Acrobat.) The complete text may be purchased from the 
Commission's copy contractor, 445 12th Street, SW., Room CY-B402, 
Washington, DC 20554. To request this document in accessible formats 
(computer diskettes, large print, audio recording, and Braille), send 
an e-mail to fcc504@fcc.gov or call the Commission's Consumer and 
Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 
(TTY).

Summary of the Order of Reconsideration

I. Introduction

    1. In this Order on Reconsideration, we reconsider in part, sua 
sponte, our March 3, 2008, decision in this proceeding, in which we 
adopted digital television (DTV) transition consumer education and 
outreach requirements for a number of industry participants, and 
clarify some of those requirements. In the DTV Consumer Education Order 
we required, among other things, that consumer electronics 
manufacturers include information about the DTV transition with certain 
products and eligible telecommunications carriers (ETC) include 
information about the DTV transition in customer bills. 73 FR 15431 
March 24, 2008. In this Order, we modify our requirements regarding the 
timing, scope, and content of manufacturer notices and the method of 
delivery of ETC notices, and clarify other manufacturer requirements.

II. Background

    2. In the DTV Consumer Education Order the Commission sought to 
ensure widespread consumer understanding of the benefits and mechanics 
of the transition by promoting a coordinated, national DTV consumer 
education campaign. One facet of this campaign was the establishment of 
a requirement that manufacturers of television receivers and related 
devices include information with those devices explaining the DTV 
transition and what effect, if any, it would have on the use of the 
device, and providing contact information for consumers to find out 
more. In particular, we required that such information had to be 
included with receivers and ``related devices'' (a term defined only by 
a non-exclusive list) that were ``shipped'' between the effective date 
of the rules and March 31, 2009, by any party that manufactured, 
imported, or shipped the device. The rules as adopted also required 
ETCs that receive federal universal service funds to provide DTV 
transition information to low-income subscribers and potential 
subscribers. In particular, we required that ETCs provide notice to 
their Lifeline and Link-Up customers, by notices in their monthly bills 
or billing notices. The rules also required education by a number of 
industry groups not at issue in the instant Order. For example, full-
power broadcasters are required to engage in extensive on-air education 
via public service announcements and other efforts, and must file 
quarterly reports with the Commission on their voluntary and mandatory 
efforts and make those reports available to the public. Id. at Appendix 
A.
    3. Following release of the DTV Consumer Education Order, we 
received a number of ex parte filings and pleadings raising concerns 
about the manufacturer requirements and the manner of notification 
required by ETCs. Specifically, the Consumer Electronics Retailers 
Coalition (CERC), along with the Consumer Electronics Association (CEA) 
and several individual retailers and manufacturers, ask the Commission 
to clarify the parties responsible for inclusion of the notices, and 
the point in the manufacturing process that is relevant for application 
of the rules. CEA and CERC also seek delayed implementation of the 
rules with respect to manufacturers, the removal of manufacturers from 
the list of contacts from which consumers can seek further information, 
and a narrowing of the list of devices covered. On the separate issue 
of ETC education, Rural Cellular Corporation (RCC), followed by a 
number of other ETCs, filed petitions for reconsideration, or in the 
alternative, limited waiver, seeking authorization for using 
alternative methods (i.e., not bill notices) to notify Lifeline and 
Link-Up customers of the transition.

III. Order on Reconsideration

    4. In this Order on Reconsideration, we provide manufacturers and 
those acting on their behalf with greater certainty regarding the 
devices that are covered by these rules, additional time to prepare to 
include the required notices, and a modified list of contact points to 
list in those notices. We also clarify the parties responsible for 
inclusion of the notices, and the relevant point in the manufacturing 
process at which the requirement begins, and take this opportunity to 
revise the rules to better capture the devices and parties to which 
they apply. Finally, we revise our rules to permit ETCs to educate 
their low-income customers via targeted monthly mailings, as an 
alternative to inclusion of notices in or on billing statements.

A. Manufacturer Notice Requirements

1. Devices Covered
    5. Every consumer electronics commenter supported changes to the 
``related devices'' standard in Sec.  15.124

[[Page 28728]]

paragraph (a) of the Commission's rules. CEA, in its initial ex parte 
filing, argues for excluding ``related devices'' from the rule 
entirely, and requiring notices only with television receivers. The 
consumer electronics commenters initially supported this proposal, but 
offered a number of variations over the course of their presentations 
to the Commission. See generally, e.g., Pioneer March 12 ex parte and 
Pioneer April 2 ex parte. We note that CERC's March 17 ex parte 
contained three distinct proposals, each of which, if adopted, would 
cover slightly different groups of devices. Our decision, sua sponte, 
is largely consistent with these proposals but eliminates the 
inconsistency and ambiguity. We agree with the essential thrust of 
these ex partes, that the group of ``related devices'' to which the 
notice requirement applies should be certain and clear. They support: 
(1) A discrete list of devices rather than the open ended category of 
``related devices,'' and (2) limiting that list to devices that work 
closely with television receivers.
    6. Upon reconsideration, we will limit the ``related devices'' 
covered by this rule to the following categories, which are derived in 
large part from existing rule requirements, with specific adjustments 
that are appropriate to these consumer education requirements. The 
``related devices'' included within this rule by no means constitute a 
full list of devices related to televisions. When used in the context 
of this Order, the term refers to the devices covered by the rule. Its 
use in this manner, however, reflects neither the limits of the term's 
meaning or the limits of the Commission's authority. The categories 
are: Television broadcast receivers as defined in Sec.  15.3 paragraph 
(w) of the rules; TV interface devices as defined in Sec.  15.3 
paragraph (y) of the rules; devices that record and/or display signals 
received from television broadcast receivers (This category includes 
only those devices designed for use with television receivers, such as 
DVD and Blu-ray recorders. It also includes only those monitors with at 
least one baseband NTSC input, thus excluding monitors intended solely 
for use with computer equipment.); and set-top boxes available for sale 
at retail that receive video programming provided by multi-channel 
video programming distributors (MVPDs). This definition creates a 
discrete and definable universe of ``related devices,'' most of which 
interact directly with a television receiver either by receiving 
information from it or relying on its presence to convey information to 
a viewer. The rule also requires manufacturers to provide information 
with MVPD set-top boxes even if they do not contain or rely on a 
television receiver. This information is needed to counter consumer 
confusion about the functioning of such boxes in light of the over-the-
air digital transition. In this instance, for example, the information 
provided could explain that the transition does not affect the use or 
functioning of these boxes or clarify that such boxes are not eligible 
for NTIA coupons.
    7. We make these modest changes because we believe that some of the 
concerns of the consumer electronics commenters regarding scope are 
well taken. The devices related to televisions and television use are 
many and varied, and, upon reconsideration, we are convinced that 
requiring that notices be included with every such device will create a 
greater burden on consumer electronics manufacturers and importers than 
is justified by the incremental gains in consumer awareness. Because we 
find that this revised rule more clearly reflects the best approach to 
educating consumers, the Commission will exercise its enforcement 
discretion and decline to penalize entities for not adhering to the 
requirements of the original rule while waiting for the modified rule 
to go into effect.
2. Parties Responsible
    8. The DTV Consumer Education Order imposed responsibility for 
compliance with the manufacturer rules on parties that ``manufacture, 
import, or ship interstate television receivers and related devices.'' 
CERC, the first consumer electronic manufacturer to file an ex parte 
raising concern about this language, argued that the language was 
``potentially highly misleading,'' and, at best, ``entirely redundant'' 
because ``law and regulation already define the parties responsible for 
part 15 compliance.'' Over the course of its filings, CERC argued that 
the language as written could impose responsibility and liability on 
parties far beyond ``the party responsible as the `manufacturer,' '' 
and that this would expand the rule beyond that contemplated in the 
Notice of Proposed Rulemaking. Furthermore, as noted, CERC argued that 
the parties responsible for compliance were already clear under the 
rules, and that to go beyond that existing understanding would add 
burden by making it unclear which party was responsible for the notices 
without reaching any additional consumers. Subsequent filers agreed, 
and Pioneer in its April 4 filing proposed to revise Sec.  15.124 
paragraph (c) of the rules to explicitly cite to Sec.  2.909 of the 
Commission's rules.
    9. Upon reconsideration, we revise Sec.  15.124 paragraph (c) of 
the Commission's rules to clarify that the party responsible for 
inclusion of the notice is the ``manufacturer,'' or the party acting as 
the manufacturer under our rules. We are revising the rule in 
accordance with the suggestion of Pioneer (speaking with the 
concurrence of all the consumer electronics commenters), to simply 
direct parties to Sec.  2.909 of the rules in order to determine the 
``responsible party'' for the purposes of enforcement of this rule. 
Because we find that this revised rule more clearly reflects the best 
approach to educating consumers, the Commission will exercise its 
enforcement discretion and decline to penalize entities for not 
adhering to the requirements of the original rule while waiting for the 
modified rule to go into effect.
3. Point of ``Manufacture''
    10. The consumer electronics commenters, including LG, Hitachi, and 
Samsung, argue that the current language of the rules, under which 
devices ``shipped'' during the effective period of the rules are 
covered by the rules, is neither clear as to its intent nor, on its 
face, limited to manufacturers and those acting in their stead. 
Instead, they argue that the word ``manufactured'' should be used to 
clarify that our rules do not ``require notices to be applied at 
secondary logistics centers, which would require opening or 
repackaging, or to products staged in containers for delivery to 
dealers after such products had already been imported or shipped from 
the point of manufacture.'' Indeed, CERC argues that ``a rule that 
would apply to all interstate shipments, whether or not from the 
factory, would be unworkable because identical products could be in 
various stages of preparation, shipment, and storage when the 
regulation becomes effective,'' and indeed under such a regime that it 
would be ``impossible'' to determine whether compliance was required 
for any given product. The industry commenters on this question ask the 
Commission to clarify that we are applying the rules to devices 
``packed and sealed'' for eventual retail purchase, not simply devices 
shipped by any party during the effective period of the rules.
    11. Upon reconsideration, we find that it is in the public interest 
to revise the language of our rules, replacing ``shipped'' with 
``manufactured'' to more accurately and clearly reflect the intent of 
the rule. The requirement to ensure that each covered device

[[Page 28729]]

include, on or in the packaging, the required consumer education 
information, rests with the responsible party. Therefore, as under the 
existing rule, we will require notices to be included with any 
television receiver or related device if the date of manufacture of the 
final product occurs during the effective period of the rules. Because 
we find that this revised rule more clearly reflects the best approach 
to educating consumers, the Commission will exercise its enforcement 
discretion and decline to penalize entities for not adhering to the 
requirements of the original rule while waiting for the modified rule 
to go into effect.
4. Start Date
    12. The DTV Consumer Education Order created consumer notice 
requirements requiring printed notices for three groups: MVPDs, ETCs, 
and manufacturers. In the Order as adopted, both MVPDs and ETCs were 
given 30 days from the effective date of the rules to begin complying, 
but manufacturers were required to begin compliance immediately (i.e., 
on March 31, 2008). Shortly after the release of the DTV Consumer 
Education Order, CERC, CEA, Sony Electronics, Inc. (Sony), Pioneer 
North America, Inc. (Pioneer), and Panasonic Corporation of North 
America (Panasonic) (collectively, ``the consumer electronics 
commenters'') made ex parte presentations requesting that manufacturers 
be granted the same time period for implementation of the DTV notice 
requirements as MVPDs and ETCs. The parties argued that a certain 
``lead time'' is necessary to ensure compliance with the Commission 
requirements, due to the time necessary for reconfiguring packaging 
equipment and printing notices. CEA in particular expressed concern 
that the rules as drafted would put manufacturers out of compliance 
immediately upon becoming effective. Thus, they request that the 
Commission delay their effective date, as the Commission had done for 
the other groups who were required by the Order to provide written 
notice to consumers.
    13. We find upon reconsideration that it is in the public interest 
to revise the start date for our manufacturer notice requirements. Due 
to the urgent need for consumer education, we found good cause to make 
the original rules effective immediately upon publication in the 
Federal Register. As a result, manufacturers did not get the more 
common 30 day lead time after notice of publication before the rules 
became effective. We are persuaded that they need additional time to 
come into compliance, and the approval and publication process 
associated with implementation of the amended rules will give 
manufacturers sufficient time to fully comply. As noted above, CEA, 
later joined by CERC and other consumer electronics commenters, sought 
a delay of enforcement of the manufacturer notice rules, requesting 
``the same time period for implementation of the notice requirement 
that is required of MVPDs'' and ETCs. CEA March 6 ex parte at 1. MVPDs 
and ETCs will be required to be compliant with the rules governing them 
on April 30, 2008. Because of the approval and publication process 
through which these revised manufacturer rules must go, they will be 
effective no earlier than May 30, 2008. Thus, consumer electronics 
commenters will have sufficient time to comply. To further assist the 
manufacturers in ensuring their readiness for compliance, we are 
establishing a date certain, May 30, 2008, as the effective date for 
these rules. The rule revisions adopted in this Order on 
Reconsideration modify information collections and will be effective 
May 30, 2008. We will be seeking emergency review by OMB, and will note 
in our request that the amended rules give manufacturers additional 
flexibility beyond that granted in the rules already in place, which 
were granted emergency review. Furthermore, as discussed above, the 
Commission will refrain from enforcement of any manufacturer rules 
until the new rules go into effect. Consequently, manufacturers will 
have ample time after adoption and release of this Order to come into 
compliance before the rules take effect.
5. Manufacturer Contact Information in Notices
    14. The DTV Consumer Education Order required that the notices 
included with television receivers and related devices contain a number 
of contact points in order for consumers to be able to find more 
information about the transition. The rules required that one of these 
contact points be the ``manufacturer at [telephone number].'' CERC and 
CEA point out that ``in many cases a manufacturer does not maintain an 
appropriate telephone number, so this requirement could result in 
consumer confusion.'' The notices also must contain Web site addresses 
and contact information to allow consumers to find additional 
information about the DTV transition.
    15. Upon reconsideration, we recognize and share the consumer 
electronics commenters' concerns. We also recognize the importance of 
providing consumers with a variety of effective resources. Therefore, 
in order to ensure that consumers have straightforward access to the 
best sources of information about the transition, we will eliminate the 
requirement that manufacturers include their phone number on the 
notices shipped with televisions and certain related devices, but will 
require that manufacturers include the FCC Call Center's number on 
these notices.

B. Eligible Telecommunications Carrier Notice Requirements

    16. As discussed above, the ETC education rules require that ETCs 
include transition notices in the monthly bills or bill notices of 
their low-income (Lifeline/Link-Up) customers. The Commission has 
received two independent Petitions for Reconsideration, on behalf of 
several ETCs in the Midwest, which seek expedited reconsideration of 
the DTV Consumer Education Order, or, in the alternative, limited 
waivers, to allow ETCs to provide notice via monthly postcards, rather 
than in the bills themselves. The ETCs argue that a monthly postcard 
would be significantly less expensive than a bill notice. They also 
argue that it would be, at a minimum, impractical to include notices in 
the bills of only Lifeline and Link-Up customers, and that a portion of 
the cost savings will come from targeting Lifeline/Link-up subscribers, 
as our Order required, instead of distributing the notices to all 
customers. The ETCs also argue that a postcard will be a better vehicle 
for customer education than a bill notice, because it is more 
noticeable than information included with a bill.
    17. We find, upon reconsideration, that it is in the public 
interest to revise our rules to permit alternative methods of monthly 
outreach by ETCs to Lifeline and Link-Up customers. We adopt the 
proposal of RCC, to permit use of a monthly stand-alone mailer to these 
customers in lieu of inclusion of transition information in bills or 
billing notices. This change has no impact on the information which 
must be conveyed in the notice, it simply expands the permissible forms 
in which the notice may be provided. We also remind ETCs of their 
obligation to include DTV transition information in all Lifeline and 
Link-Up publicity and advertising, and that this obligation is not 
affected by these revisions. We note that the revised rules will not be 
effective until May 30, 2008, but that, pursuant to the existing 
effective rules, beginning April 30, 2008, ETCs must provide monthly 
DTV transition notices to their low-income customers. We

[[Page 28730]]

intend to enforce these existing rules, beginning on April 30. However, 
we will apply our prosecutorial discretion, and will not enforce the 
existing rules against ETCs that use a monthly stand-alone mailer 
(e.g., postcard, brochure), rather than a billing insert, prior to May 
30, so long as they otherwise comply with the customer notice rules.

IV. Procedural Matters

A. Supplemental Final Regulatory Flexibility Analysis

    18. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated into the Notice of Proposed Rulemaking (NPRM). The 
Commission sought written public comment on the proposals in the NPRM, 
including comment on the IRFA. This present Supplemental Final 
Regulatory Flexibility Analysis (FRFA) conforms to the RFA.
1. Need for, and Objectives of, the Order on Reconsideration
    19. Following release of the DTV Consumer Education Order, we 
received a number of ex parte filings and pleadings raising concerns 
about the manufacturer requirements and the manner of notification 
required by eligible telecommunications carriers (ETCs). Specifically, 
the Consumer Electronics Retailers Coalition (CERC), along with the 
Consumer Electronics Association (CEA) and several individual retailers 
and manufacturers, ask the Commission to clarify the parties 
responsible for inclusion of the notices, and the point in the 
manufacturing process that is relevant for application of the rules. 
CEA and CERC also seek delayed implementation of the rules with respect 
to manufacturers, and a narrowing of the list of devices covered. On 
the separate issue of ETC education, Rural Cellular Corporation (RCC), 
followed by a number of other ETCs, filed petitions for 
reconsideration, or in the alternative, limited waiver, seeking 
authorization for using alternative methods (i.e., not bill notices) to 
notify Lifeline and Link-Up customers of the transition. This Order on 
Reconsideration provides manufacturers and those acting on their behalf 
with greater certainty regarding the devices that are covered by the 
consumer education rules, and additional time to prepare to include the 
required notices. We also clarify the parties responsible for inclusion 
of the notices, and the relevant point in the manufacturing process at 
which the requirement begins, and take this opportunity to revise the 
rules to better capture the devices and parties to which they apply. 
Finally, we revise our rules to permit ETCs to educate their low-income 
customers via targeted monthly mailings, as an alternative to inclusion 
of notices in or on billing statements. We make these modest changes 
because we believe that some of the concerns of the consumer 
electronics and ETC commenters are appropriate, and find that these 
revised rules more clearly reflect the best approach to educating 
consumers.
2. Summary of Issues Raised by Post-Order Filings
    20. We received no filings directly in response to the previous 
FRFA.
3. Description and Estimate of the Number of Small Entities to Which 
the Report and Order Will Apply
    21. 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 rules adopted herein. The RFA defines the term 
``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small business concern'' 
under section 3 of the Small Business Act. 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). The rules adopted herein will directly affect 
small consumer electronics (CE) manufacturers and those acting in that 
capacity (frequently CE retailers) and small eligible 
telecommunications carriers (ETCs). A description of these small 
entities, as well as an estimate of the number of such small entities, 
is provided below.
    22. Incumbent Local Exchange Carriers (LECs). Neither the 
Commission nor the SBA has developed a small business size standard 
specifically for incumbent local exchange services. The appropriate 
size standard under SBA rules is for the category Wired 
Telecommunications Carriers. Under that size standard, such a business 
is small if it has 1,500 or fewer employees. According to Commission 
data, 1,307 carriers have reported that they are engaged in the 
provision of incumbent local exchange services. Of these 1,307 
carriers, an estimated 1,019 have 1,500 or fewer employees and 288 have 
more than 1,500 employees. Consequently, the Commission estimates that 
most providers of incumbent local exchange service are small 
businesses.
    23. Competitive Local Exchange Carriers, Competitive Access 
Providers (CAPs), ``Shared-Tenant Service Providers,'' and ``Other 
Local Service Providers.'' Neither the Commission nor the SBA has 
developed a small business size standard specifically for these service 
providers. The appropriate size standard under SBA rules is for the 
category Wired Telecommunications Carriers. Under that size standard, 
such a business is small if it has 1,500 or fewer employees. According 
to Commission data, 859 carriers have reported that they are engaged in 
the provision of either competitive access provider services or 
competitive local exchange carrier services. Of these 859 carriers, an 
estimated 741 have 1,500 or fewer employees and 118 have more than 
1,500 employees. In addition, 16 carriers have reported that they are 
``Shared-Tenant Service Providers,'' and all 16 are estimated to have 
1,500 or fewer employees. In addition, 44 carriers have reported that 
they are ``Other Local Service Providers.'' Of the 44, an estimated 43 
have 1,500 or fewer employees and one has more than 1,500 employees. 
Consequently, the Commission estimates that most providers of 
competitive local exchange service, competitive access providers, 
``Shared-Tenant Service Providers,'' and ``Other Local Service 
Providers'' are small entities.
    24. Audio and Video Equipment Manufacturing. These establishments 
manufacture ``electronic audio and video equipment for home 
entertainment, motor vehicle, public address and musical instrument 
amplifications.'' The SBA has developed a small business size standard 
for this category of manufacturing; that size standard is 750 or fewer 
employees. According to Census Bureau data, there were 571 
establishments in this category that operated with payroll during 2002. 
Of these, 560 had employment of under 500, and ten establishments had 
employment of 500 to 999. Consequently, we estimate that the majority 
of these establishments are small entities.
    25. Other Communications Equipment Manufacturing. The Census Bureau 
defines this category as follows: ``This industry comprises 
establishments primarily engaged in manufacturing communications 
equipment (except telephone apparatus, and radio and television 
broadcast, and wireless communications equipment).'' The SBA has 
developed a small business size standard for Other Communications 
Equipment Manufacturing, which is: All such firms

[[Page 28731]]

having 750 or fewer employees. According to Census Bureau data for 
2002, there were a total of 503 establishments in this category that 
operated for the entire year. U.S. Census Bureau, American FactFinder, 
2002 Economic Census, Industry Series, Industry Statistics by 
Employment Size, NAICS code 334290 (released May 26, 2005); https://
factfinder.census.gov. The number of ``establishments'' is a less 
helpful indicator of small business prevalence in this context than 
would be the number of ``firms'' or ``companies,'' because the latter 
take into account the concept of common ownership or control. Any 
single physical location for an entity is an establishment, even though 
that location may be owned by a different establishment. Thus, the 
numbers given may reflect inflated numbers of businesses in this 
category, including the numbers of small businesses. In this category, 
the Census breaks-out data for firms or companies only to give the 
total number of such entities for 2002, which was 471. Of this total, 
493 had employment of under 500, and an additional 7 had employment of 
500 to 999. Id. An additional 3 establishments had employment of 1,000 
or more. Thus, under this size standard, the majority of firms can be 
considered small.
    26. Retailers. The rules adopted herein will apply only to 
retailers that are subject to the Commission's rules governing 
manufacturers because they qualify as the ``responsible party'' under 
Sec.  2.909 of the Commission's rules. The SBA has developed a small 
business size standard for Radio, Television, and Other Electronics 
Stores, which is: all such firms having $8 million or less in annual 
receipts. This standard is described below.
    27. Radio, Television, and Other Electronics Stores. The Census 
Bureau defines this economic census category as follows: ``This U.S. 
industry comprises: (1) Establishments known as consumer electronics 
stores primarily engaged in retailing a general line of new consumer-
type electronic products; (2) establishments specializing in retailing 
a single line of consumer-type electronic products (except computers); 
or (3) establishments primarily engaged in retailing these new 
electronic products in combination with repair services.'' The SBA has 
developed a small business size standard for Radio, Television, and 
Other Electronics Stores, which is: all such firms having $8 million or 
less in annual receipts. According to Census Bureau data for 2002, 
there were 10,380 firms in this category that operated for the entire 
year. Of this total, 10,080 firms had annual sales of under $5 million, 
and 177 firms had sales of $5 million or more but less than $10 
million. Id. An additional 123 firms had annual sales of $10 million or 
more. As a measure of small business prevalence, the data on annual 
sales are roughly equivalent to what one would expect from data on 
annual receipts. Thus, the majority of firms in this category can be 
considered small.
    28. Electronic Shopping. According to the Census Bureau, this 
economic census category ``comprises establishments engaged in 
retailing all types of merchandise using the Internet.'' The SBA has 
developed a small business size standard for Electronic Shopping, which 
is: all such entities having $23 million or less in annual receipts. 
According to Census Bureau data for 2002, there were 4,959 firms in 
this category that operated for the entire year. Of this total, 4,742 
firms had annual sales of under $10 million, and an additional 133 had 
sales of $10 million to $24,999,999. Id. An additional 84 firms had 
annual sales of $25 million or more. Thus, the majority of firms in 
this category can be considered small.
4. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities
    29. The rules adopted by this Order on Reconsideration impose 
reporting and other compliance requirements on small entities. These 
burdens are less than those imposed by prior rules. Manufacturers or 
those acting in their stead must include DTV transition notices with 
certain devices manufactured between June 16, 2008, and March 31, 2009. 
ETCs must provide DTV transition notices to their low-income customers 
on a monthly basis, either via targeted mailings or by inclusion with 
or on bills or bill notices.
5. Steps Taken To Minimize Significant Impact on Small Entities, and 
Significant Alternatives Considered
    30. 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.
    31. The rules adopted by this Report and Order limit the existing 
requirements on consumer electronics (CE) manufacturers and those 
acting in their stead, and provide greater flexibility to ETCs in their 
required consumer notifications. The rules clarify that only one party 
is the ``responsible party'' for purposes of enforcement of the 
manufacturer rules, and provide those responsible parties with 
additional time to come into compliance. They also more clearly 
delineate the devices to which the rules apply, and reduce the number 
of such devices. Finally, we revise our rules to permit the use of an 
alternative method by which ETCs may educate their low-income 
customers, as requested by several small ETCs. These reductions in 
burden apply to both small and non-small entities, while retaining the 
requirements for consumer education that are necessary to ensure the 
success of the transition. Thus, no alternative rules would be 
appropriate.

B. Report to Congress

    32. The Commission will send a copy of the Order on 
Reconsideration, including this supplemental FRFA, in a report to be 
sent to Congress and the Government Accountability Office pursuant to 
the Congressional Review Act. In addition, the Commission will send a 
copy of the Order on Reconsideration, including this FRFA, to the Chief 
Counsel for Advocacy of the SBA. A copy of the Order on Reconsideration 
and FRFA (or summaries thereof) will also be published in the Federal 
Register.
1. Paperwork Reduction Act Analysis
    33. This Order on Reconsideration was analyzed with respect to the 
Paperwork Reduction Act of 1995 (PRA) and contains modified information 
collection requirements, relating to the following approved 
collections: (1) Manufacturers of television receivers and related 
devices must provide notice to consumers buying their devices of the 
transition's impact on that equipment; and (2) ETCs that receive 
federal universal service funds must provide notice of the transition 
to their low income customers and potential customers. The Commission 
will publish a separate Federal Register document seeking comments from 
OMB, the general public, and other Federal agencies on the final 
information collection requirements contained in this proceeding. In 
addition, pursuant to the Small Business Paperwork Relief Act of 2002,

[[Page 28732]]

we will also seek specific comment on how we might ``further reduce the 
information collection burden for small business concerns with fewer 
than 25 employees'' in the Federal Register document seeking comment on 
the information collections.
2. Congressional Review Act
    34. The Commission will send a copy of this Order on 
Reconsideration in a report to be sent to Congress and the Government 
Accountability Office, pursuant to the Congressional Review Act.

C. Additional Information

    35. For more information on this Order on Reconsideration and 
Further Notice of Proposed Rulemaking, please contact Lyle Elder, 
Lyle.Elder@fcc.gov, or Eloise Gore, Eloise.Gore@fcc.gov, of the Media 
Bureau, Policy Division, (202) 418-2120.

V. Ordering Clauses

    36. It is ordered that, pursuant to the authority contained in 
sections 1, 2, 4(i), 7, 254, 303, and 309 of the Communications Act of 
1934, as amended, 47 U.S.C. 151, 152, 154(i), 157, 254, 303, and 309, 
this Order on Reconsideration is adopted and parts 15 and 54 of the 
Commission's rules are amended as set forth in Appendix A. These 
amended rules will be effective beginning May 30, 2008. We anticipate 
that the summary of the Order will be published in the Federal Register 
at least 30 days before the effective date of May 30, 2008. In the 
event that publication is delayed, however, we find good cause for 
these rules to be effective on May 30, 2008, to ensure that consumers 
are informed about the digital television transition on February 17, 
2009, the statutory deadline for all full power television broadcasters 
to transition to all digital service.
    37. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Order on Reconsideration and Further Notice of Proposed 
Rulemaking, including the Supplemental Final and Initial Regulatory 
Flexibility Analyses, to the Chief Counsel for Advocacy of the Small 
Business Administration.

List of Subjects in 47 CFR Parts 15 and 54

    Communications common carriers, Communications equipment, Digital 
television, Digital television equipment, Labeling, Radio, Reporting 
and recordkeeping requirements, Telecommunications, Telephone.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rules

0
For the reasons discussed in the preamble, the Federal Communications 
Commission amends 47 CFR parts 15 and 54 to read 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, 302a, 303, 304, 307, 336, and 544a.


0
2. Section 15.124 is revised to read as follows:


Sec.  15.124  DTV Transition Notices by Manufacturers of Televisions 
and Related Devices.

    (a) Television receivers and related devices manufactured between 
May 30, 2008, and March 31, 2009, must include notices about the 
digital television (DTV) transition. Related devices covered by this 
requirement: All television broadcast receivers as defined in Sec.  
15.3(w); TV interface devices as defined in Sec.  15.3(y); devices that 
record and/or display signals received from television broadcast 
receivers; and set-top boxes available for sale at retail that receive 
video programming provided by multi-channel video programming 
distributors.
    (b) The notices required under paragraph (a) of this section must:
    (1) Be in clear and conspicuous print;
    (2) Convey at least the following information about the DTV 
transition:
    (i) After February 17, 2009, a television receiver with only an 
analog broadcast tuner will require a converter box to receive full 
power over-the-air broadcasts with an antenna because of the Nation's 
transition to digital broadcasting. Analog-only TVs should continue to 
work as before to receive low power, Class A or translator television 
stations and with cable and satellite TV services, gaming consoles, 
VCRs, DVD players, and similar products.
    (ii) Information about the DTV transition is available from https://
www.DTV.gov or 1-888-CALL-FCC, and from https://www.dtv2009.gov or 1-
888-DTV-2009 for information about subsidized coupons for digital-to-
analog converter boxes; and
    (3) Explain clearly what effect, if any, the DTV transition will 
have on the use of the receiver or related device, including any 
limitations or requirements associated with connecting a related device 
to a DTV receiver.
    (c) This notice requirement applies to all responsible parties, as 
defined in Sec.  2.909 of this chapter.

PART 54--UNIVERSAL SERVICE

0
3. The authority citation for part 54 continues to read as follows:

    Authority: 47 U.S.C. 151, 154(i), 201, 205, 214, and 254 unless 
otherwise noted.


0
4. Section 54.418 is revised to read as follows:


Sec.  54.418  Digital Television Transition Notices by Eligible 
Telecommunications Carriers.

    (a) Eligible telecommunications carriers (ETCs) that receive 
federal universal service funds shall provide their Lifeline or Link-Up 
customers with notices about the transition for over-the-air full power 
broadcasting from analog to digital service (the ``DTV Transition'') in 
the monthly bills or bill notices received by such customers, or as a 
monthly stand-alone mailer (e.g., postcard, brochure), beginning April 
30, 2008, and concluding in March 2009.
    (b) The notice must be provided as part of an information section 
on the bill or bill notice itself or on a secondary document mailed 
with the bill or bill notice, or as part of a monthly stand-alone 
mailer (e.g., postcard, brochure) in the same language or languages as 
the customer's bill or bill notice. These notices must:
    (1) Be in clear and conspicuous print;
    (2) Convey at least the following information about the DTV 
transition:
    (i) After February 17, 2009, a television receiver with only an 
analog broadcast tuner will require a converter box to receive full 
power over-the-air broadcasts with an antenna because of the Nation's 
transition to digital broadcasting. Analog-only TVs should continue to 
work as before to receive low power, Class A or translator television 
stations and with cable and satellite TV services, gaming consoles, 
VCRs, DVD players, and similar products.
    (ii) Information about the DTV transition is available from https://
www.DTV.gov, and from https://www.dtv2009.gov or 1-888-DTV-2009 for 
information about subsidized coupons for digital-to-analog converter 
boxes;
    (c) If an ETC's Lifeline or Link-Up customer does not receive paper 
versions of either a bill or a notice of billing, then that customer 
must be provided with equivalent monthly notices in whatever medium 
they

[[Page 28733]]

receive information about their monthly bill or as a monthly stand-
alone mailer (e.g., postcard, brochure).
    (d) ETCs that receive federal universal service funds shall provide 
information on the DTV Transition that is equivalent to the information 
provided pursuant to paragraph (b)(2) of this section as part of any 
Lifeline or Link-Up publicity campaigns conducted by the ETC between 
March 27, 2008, and March 31, 2009.

 [FR Doc. E8-11156 Filed 5-16-08; 8:45 am]
BILLING CODE 6712-01-P