DTV Consumer Education Initiative, 30591-30596 [E8-11889]
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30591
Federal Register / Vol. 73, No. 103 / Wednesday, May 28, 2008 / Proposed Rules
Annual
regulatory fee
(U.S. $’s)
Fee category
Markets 1–10 ..........................................................................................................................................................................
Markets 11–25 ........................................................................................................................................................................
Markets 26–50 ........................................................................................................................................................................
Markets 51–100 ......................................................................................................................................................................
Remaining Markets .................................................................................................................................................................
Construction Permits ..............................................................................................................................................................
TV (47 CFR part 73) UHF Commercial.
Markets 1–10 ..........................................................................................................................................................................
Markets 11–25 ........................................................................................................................................................................
Markets 26–50 ........................................................................................................................................................................
Markets 51–100 ......................................................................................................................................................................
Remaining Markets .................................................................................................................................................................
Construction Permits ..............................................................................................................................................................
Satellite Television Stations (All Markets) .....................................................................................................................................
Construction Permits—Satellite Television Stations .....................................................................................................................
Low Power TV, TV/FM Translators & Boosters (47 CFR part 74) ...............................................................................................
Broadcast Auxiliary (47 CFR part 74) ...........................................................................................................................................
CARS (47 CFR part 78) ................................................................................................................................................................
Cable Television Systems (per subscriber) (47 CFR part 76) ......................................................................................................
Interstate Telecommunication Service Providers (per revenue dollar) .........................................................................................
Earth Stations (47 CFR part 25) ...................................................................................................................................................
Space Stations (per operational station in geostationary orbit) (47 CFR part 25) also includes Direct Broadcast Satellite
Service (per operational station) (47 CFR part 100) .................................................................................................................
Space Stations (per operational system in non-geostationary orbit) (47 CFR part 25) ...............................................................
International Bearer Circuits (per active 64KB circuit) ..................................................................................................................
International Public Fixed (per call sign) (47 CFR part 23) ..........................................................................................................
International (HF) Broadcast (47 CFR part 73) .............................................................................................................................
64,300
46,350
31,075
20,000
5,125
5,125
19,650
19,450
10,800
6,300
1,750
1,750
1,100
550
345
10
185
.75
.00266
185
109,200
116,475
1.05
1,875
795
FY 2007 Schedule of Regulatory Fees
(continued)
FY 2007 RADIO STATION REGULATORY FEES
AM class
A
Population served
<=25,000 ..........................................................................
25,001–75,000 .................................................................
75,001–150,000 ...............................................................
150,001–500,000 .............................................................
500,001–1,200,000 ..........................................................
1,200,001–3,000,00 .........................................................
>3,000,000 .......................................................................
[FR Doc. E8–11891 Filed 5–27–08; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Parts 15 and 54
[MB Docket No. 07–148; FCC 08–119]
DTV Consumer Education Initiative
Federal Communications
Commission.
ACTION: Proposed rule.
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AGENCY:
SUMMARY: The Commission asks
whether the eligible
telecommunications carrier (ETC)
obligation to provide monthly digital
television (DTV) transition notices to
low-income subscribers should be
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$625
1,225
1,825
2,750
3,950
6,075
7,275
AM class
B
AM class
C
$475
925
1,150
1,950
2,975
4,575
5,475
$400
600
800
1,200
2,000
3,000
3,800
expanded to require the provision of
such notices to all subscribers, and
whether multichannel video
programming distributors (MVPDs)
should be required to provide on-air
DTV transition education on their
systems.
Comments for this proceeding
are due on or before June 27, 2008; reply
comments are due on or before July 14,
2008.
DATES:
Federal Communications
Commission, 445 12th Street, SW.,
Washington, DC 20554. You may submit
comments, identified by MB Docket No.
07–148, by any of the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
ADDRESSES:
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AM class
D
$475
725
1,200
1,425
2,375
3,800
4,750
FM classes
A, B1 & C3
FM classes
B, C, C0,
C1 & C2
$575
1,150
1,600
2,475
3,900
6,350
8,075
$725
1,250
2,300
3,000
4,400
7,025
9,125
• Federal Communications
Commission’s Web Site: https://
www.fcc.gov/cgb/ecfs/. Follow the
instructions for submitting comments.
• People with Disabilities: Contact
the FCC to request reasonable
accommodations (accessible format
documents, sign language interpreters,
CART, etc.) by e-mail: FCC504@fcc.gov
or phone: 202–418–0530 or TTY: 202–
418–0432.
For detailed instructions for
submitting comments and additional
information on the rulemaking process,
see the SUPPLEMENTARY INFORMATION
section of this document.
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
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of their subscribers, rather than just lowincome subscribers. Such a revision
would ensure a wider reach for DTV
transition notices as the February 17,
2009, deadline approaches, but could
increase expenses for ETCs. What is the
appropriate balance for the
Commission’s Rules in this area? We
seek comment on this proposal.
2. The first Notice of Proposed
Rulemaking, 72 FR 46014 August 16,
2007, in this proceeding sought
comment on ‘‘other initiatives that the
Commission can and should undertake
to educate the public on the DTV
transition.’’ In response to this request,
some commenters proposed that the
Commission require MVPDs to provide
on-air DTV transition education on their
systems. We seek comment on this
proposal. As the National Cable and
Telecommunications Association
(NCTA) has noted, the cable industry,
for instance, is already engaged in a
‘‘$200 million digital TV transition
consumer education campaign,
highlighted by English and Spanish
language television commercials.’’
Should we require MVPDs, such as
cable and direct broadcast satellite
operators, to provide on-air DTV
transition education on their systems as
we have for TV broadcasters? We seek
comment on what entities should be
covered and the on-air educational
efforts that should be required.
Summary of the Notice of Proposed
Rulemaking
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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 Further
Notice of Proposed Rulemaking 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).
II. Procedural Matters
I. Further Notice of Proposed
Rulemaking
1. As discussed in the Order on
Reconsideration of the Consumer
Education Initiative Order, the revised
ETC education rules require that ETCs
provide monthly transition notices to
their low-income (Lifeline/Link-Up)
customers. This requirement is similar
to the one proposed by Chairmen
Dingell and Markey in their Letter to the
Commission, in which they suggested
that the Commission ‘‘require, as an
interim measure, that
telecommunications carriers that receive
funds under the Low Income Federal
universal service program * * * notify
each of their low income customers of
the digital transition and include such
a notice in their required Lifeline and
Link-Up publicity efforts.’’ On April 15,
2008, during Chairman Martin’s
testimony before the House Committee
on Energy and Commerce’s
Subcommittee on Telecommunications
and the Internet, Congressman Fred
Upton suggested that the Commission
explore revising these rules to require
that ETCs provide monthly notices to all
3. As required by the Regulatory
Flexibility Act of 1980, as amended
(‘‘RFA’’), the Commission has prepared
this Initial Regulatory Flexibility
Analysis (‘‘IRFA’’) of the possible
economic impact on a substantial
number of small entities by the rules
proposed in this Further Notice of
Proposed Rulemaking (‘‘FNPRM’’).
Written public comments are requested
on this IRFA. Comments must be
identified as responses to the IRFA and
must be filed by the deadlines for
comments on the Further Notice as
indicated on the first page of the Order.
The Commission will send a copy of the
Further Notice, including this IRFA, to
the Chief Counsel for Advocacy of the
Small Business Administration
(‘‘SBA’’). In addition, the FNPRM and
IRFA (or summaries thereof) will be
published in the Federal Register.
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A. Initial Regulatory Flexibility Analysis
1. Need for, and Objectives of, the
Proposals
4. This FNPRM seeks comment on a
proposal to require that ETCs provide
monthly notices to all of their
subscribers, rather than just low-income
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subscribers as required by the current
rules. It also seeks comment on a
proposal to require MVPDs to provide
on-air DTV transition education on their
systems. It seeks comment on whether,
as a policy matter, the Commission
should impose such requirements.
2. Legal Basis
5. The authority for the action
proposed in this rulemaking is
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.
3. Description and Estimate of the
Number of Small Entities to Which the
Proposals Will Apply
6. 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
ETCs. A description of these small
entities, as well as an estimate of the
number of such small entities, is
provided below.
7. 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.
8. 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
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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.
9. Cable Television Distribution
Services. Since 2007, these services
have been defined within the broad
economic census category of Wired
Telecommunications Carriers; that
category is defined as follows: ‘‘This
industry comprises establishments
primarily engaged in operating and/or
providing access to transmission
facilities and infrastructure that they
own and/or lease for the transmission of
voice, data, text, sound, and video using
wired telecommunications networks.
Transmission facilities may be based on
a single technology or a combination of
technologies.’’ The SBA has developed
a small business size standard for this
category, which is: All such firms
having 1,500 or fewer employees. To
gauge small business prevalence for
these cable services we must, however,
use current census data that are based
on the previous category of Cable and
Other Program Distribution and its
associated size standard; that size
standard was: All such firms having
$13.5 million or less in annual receipts.
According to Census Bureau data for
2002, there were a total of 1,191 firms
in this previous category that operated
for the entire year. Of this total, 1,087
firms had annual receipts of under $10
million, and 43 firms had receipts of
$10 million or more but less than $25
million. Thus, the majority of these
firms can be considered small.
10. Cable System Operators (Rate
Regulation Standard). The Commission
has developed its own small business
size standard for cable system operators,
for purposes of rate regulation. Under
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the Commission’s rules, a ‘‘small cable
company’’ is one serving fewer than
400,000 subscribers nationwide. The
most recent estimates indicate that there
were 1,439 cable operators who
qualified as small cable system
operators at the end of 1995. Since then,
some of those companies may have
grown to serve more than 400,000
subscribers, and others may have been
involved in transactions that caused
them to be combined with other cable
operators. Consequently, the
Commission estimates that there are
now fewer than 1,439 small entity cable
system operators that may be affected by
the rules and policies adopted herein.
11. Cable System Operators (Telecom
Act Standard). The Communications
Act of 1934, as amended, also contains
a size standard for small cable system
operators, which is ‘‘a cable operator
that, directly or through an affiliate,
serves in the aggregate fewer than 1
percent of all subscribers in the United
States and is not affiliated with any
entity or entities whose gross annual
revenues in the aggregate exceed
$250,000,000.’’ The Commission has
determined that there are 67,700,000
subscribers in the United States.
Therefore, an operator serving fewer
than 677,000 subscribers shall be
deemed a small operator, if its annual
revenues, when combined with the total
annual revenues of all its affiliates, do
not exceed $250 million in the
aggregate. Based on available data, the
Commission estimates that the number
of cable operators serving 677,000
subscribers or fewer, totals 1,450. The
Commission neither requests nor
collects information on whether cable
system operators are affiliated with
entities whose gross annual revenues
exceed $250 million, and therefore is
unable, at this time, to estimate more
accurately the number of cable system
operators that would qualify as small
cable operators under the size standard
contained in the Communications Act of
1934.
12. Private Cable Operators (PCOs)
also known as Satellite Master Antenna
Television (SMATV) Systems. PCOs,
also known as SMATV systems or
private communication operators, are
video distribution facilities that use
closed transmission paths without using
any public right-of-way. PCOs acquire
video programming and distribute it via
terrestrial wiring in urban and suburban
multiple dwelling units such as
apartments and condominiums, and
commercial multiple tenant units such
as hotels and office buildings. The SBA
definition of small entities for Cable and
Other Program Distribution includes
PCOs and, thus, small entities are
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defined as all such companies
generating $13.5 million or less in
annual receipts. Currently, there are
more than 150 members in the
Independent Multi-Family
Communications Council (IMCC), the
trade association that represents PCOs.
Individual PCOs often serve
approximately 3,000–4,000 subscribers,
but the larger operations serve as many
as 15,000–55,000 subscribers. In total,
PCOs currently serve approximately one
million subscribers. Because these
operators are not rate regulated, they are
not required to file financial data with
the Commission. Furthermore, we are
not aware of any privately published
financial information regarding these
operators. Based on the estimated
number of operators and the estimated
number of units served by the largest
ten PCOs, we believe that a substantial
number of PCOs qualify as small
entities.
13. Satellite Carriers. The term
‘‘satellite carrier’’ includes entities
providing services as described in 17
U.S.C. 119(d)(6) using the facilities of a
satellite or satellite service licensed
under part 25 of the Commission’s rules
to operate in Direct Broadcast Satellite
(‘‘DBS’’) or Fixed-Satellite Service
(‘‘FSS’’) frequencies. As a general
practice, not mandated by any
regulation, DBS licensees usually own
and operate their own satellite facilities
as well as package the programming
they offer to their subscribers. In
contrast, satellite carriers using FSS
facilities often lease capacity from
another entity that is licensed to operate
the satellite used to provide service to
subscribers. These entities package their
own programming and may or may not
be Commission licensees themselves. In
addition, a third situation may include
an entity using a non-U.S. licensed
satellite to provide programming to
subscribers in the United States
pursuant to a blanket earth station
license. Since 2007, the SBA has
recognized satellite television
distribution services within the broad
economic census category of Wired
Telecommunications Carriers. The SBA
has developed a small business size
standard for this category, which is: All
such firms having 1,500 or fewer
employees. The most current Census
Bureau data, however, are from the last
economic census of 2002, and we will
use those figures to gauge the
prevalence of small businesses in this
category. According to Census Bureau
data for 2002, there were a total of 1,191
firms in this previous category that
operated for the entire year. Of this
total, 1,087 firms had annual receipts of
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under $10 million, and 43 firms had
receipts of $10 million or more but less
than $25 million. Thus, the majority of
these firms can be considered small.
14. Direct Broadcast Satellite (DBS)
Service. DBS service is a nationally
distributed subscription service that
delivers video and audio programming
via satellite to a small parabolic ‘‘dish’’
antenna at the subscriber’s location.
Because DBS provides subscription
services, DBS falls within the SBArecognized definition of Wired
Telecommunications Carriers. The SBA
has developed a small business size
standard for this category, which is: All
such firms having 1,500 or fewer
employees. The most current Census
Bureau data, however, are from the last
economic census of 2002, and so we
will rely on the previous size standard,
Cable and Other Program Distribution,
which provides that a small entity is
one with $13.5 million or less in annual
receipts. Currently, only two
operators—DirecTV and EchoStar
Communications Corporation
(‘‘EchoStar’’)—hold licenses to provide
DBS service, which requires a great
investment of capital for operation. Both
currently offer subscription services and
report annual revenues that are in
excess of the threshold for a small
business. Because DBS service requires
significant capital, we believe it is
unlikely that a small entity as defined
by the SBA would have the financial
wherewithal to become a DBS licensee.
Nevertheless, given the absence of
specific data on this point, we
acknowledge the possibility that there
are entrants in this field that may not
yet have generated $13.5 million in
annual receipts, and therefore may be
categorized as a small business, if
independently owned and operated.
15. Fixed-Satellite Service (‘‘FSS’’).
The FSS is a radiocommunication
service between earth stations at a
specified fixed point or between any
fixed point within specified areas and
one or more satellites. The FSS, which
utilizes many earth stations that
communicate with one or more space
stations, may be used to provide
subscription video service. Therefore, to
the extent FSS frequencies are used to
provide subscription services, FSS falls
within the SBA-recognized definition of
Wired Telecommunications Carriers.
The SBA has developed a small
business size standard for this category,
which is: All such firms having 1,500 or
fewer employees. The most current
Census Bureau data, however, are from
the last economic census of 2002, and
so we will rely on the previous size
standard, Cable and Other Program
Distribution, which provides that a
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small entity is one with $13.5 million or
less in annual receipts. Although a
number of entities are licensed in the
FSS, not all such licensees use FSS
frequencies to provide subscription
services. Both of the DBS licensees
(EchoStar and DirecTV) have indicated
interest in using FSS frequencies to
broadcast signals to subscribers. It is
possible that other entities could
similarly use FSS frequencies, although
we are not aware of any entities that
might do so.
16. Home Satellite Dish (HSD)
Service. Because HSD provides
subscription services, HSD falls within
the SBA-recognized definition of Wired
Telecommunications Carriers. The SBA
has developed a small business size
standard for this category, which is: All
such firms having 1,500 or fewer
employees. The most current Census
Bureau data, however, are from the last
economic census of 2002, and so we
will rely on the previous size standard,
Cable and Other Program Distribution,
which provides that a small entity is
one with $13.5 million or less in annual
receipts. HSD or the large dish segment
of the satellite industry is the original
satellite-to-home service offered to
consumers, and involves the home
reception of signals transmitted by
satellites operating generally in the Cband frequency. Unlike DBS, which
uses small dishes, HSD antennas are
between four and eight feet in diameter
and can receive a wide range of
unscrambled (free) programming and
scrambled programming purchased from
program packagers that are licensed to
facilitate subscribers’ receipt of video
programming. There are approximately
30 satellites operating in the C-band,
which carry more than 500 channels of
programming combined; approximately
350 channels are available free of charge
and 150 are scrambled and require a
subscription. HSD is difficult to
quantify in terms of annual revenue.
HSD owners have access to program
channels placed on C-band satellites by
programmers for receipt and
distribution by MVPDs. Commission
data show that, as of June 2005, there
were 206,358 households authorized to
receive HSD service. The Commission
has no information regarding the annual
revenue of the four C-Band distributors.
17. Open Video Systems (OVS). The
OVS framework provides opportunities
for the distribution of video
programming other than through cable
systems. Because OVS operators provide
subscription services, OVS falls within
the SBA-recognized definition of Wired
Telecommunications Carriers. The SBA
has developed a small business size
standard for this category, which is: All
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such firms having 1,500 or fewer
employees. The most current Census
Bureau data, however, are from the last
economic census of 2002, and so we
will rely on the previous size standard,
Cable and Other Program Distribution,
which provides that a small entity is
one with $13.5 million or less in annual
receipts. The Commission has certified
25 OVS operators with some now
providing service. Broadband service
providers (BSPs) are currently the only
significant holders of OVS certifications
or local OVS franchises, even though
OVS is one of four statutorilyrecognized options for local exchange
carriers (LECs) to offer video
programming services. As of June 2005,
BSPs served approximately 1.4 million
subscribers, representing 1.5 percent of
all MVPD households. Affiliates of
Residential Communications Network,
Inc. (‘‘RCN’’), which serves about
371,000 subscribers as of June 2005, is
currently the largest BSP and 14th
largest MVPD. RCN received approval to
operate OVS systems in New York City,
Boston, Washington, DC and other
areas. The Commission does not have
financial information regarding the
entities authorized to provide OVS,
some of which may not yet be
operational. We thus believe that at least
some of the OVS operators may qualify
as small entities.
18. Wireless Cable Systems. Wireless
cable systems use the Broadband Radio
Service (‘‘BRS’’), formerly Multipoint
Distribution Service (‘‘MDS’’), and
Educational Broadband Service (‘‘EBS’’),
formerly Instructional Television Fixed
Service (‘‘ITFS’’), frequencies in the 2
GHz band to transmit video
programming and provide broadband
services to residential subscribers.
These services were originally designed
for the delivery of multichannel video
programming, similar to that of
traditional cable systems, but over the
past several years licensees have
focused their operations instead on
providing two-way high-speed Internet
access services. Nonetheless, they
appear to fall within the SBArecognized definition of Wired
Telecommunications Carriers. The SBA
has developed a small business size
standard for this category, which is: All
such firms having 1,500 or fewer
employees. The most current Census
Bureau data, however, are from the last
economic census of 2002, and so we
will rely on the previous size standard,
Cable and Other Program Distribution,
which provides that a small entity is
one with $13.5 million or less in annual
receipts. We estimate that the number of
wireless cable subscribers is
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approximately 100,000, as of March
2005. Id. Local Multipoint Distribution
Service (‘‘LMDS’’) is a fixed broadband
point-to-multipoint microwave service
that provides for two-way video
telecommunications.
19. Wireless Cable Systems
(Commission Auction Standard). The
Commission has defined small MDS
(now BRS) and LMDS entities in the
context of Commission license auctions.
In the 1996 MDS auction, the
Commission defined a small business as
an entity that had annual average gross
revenues of less than $40 million in the
previous three calendar years. This
definition of a small entity in the
context of MDS auctions has been
approved by the SBA. In the MDS
auction, 67 bidders won 493 licenses. Of
the 67 auction winners, 61 claimed
status as a small business. In addition to
the 48 small businesses that have held
BTA authorizations, there are
approximately 392 incumbent MDS
licensees that have gross revenues that
are not more than $40 million and are
thus considered small entities. MDS
licensees and wireless cable operators
that did not participate in the MDS
auction must rely on the SBA definition
of small entities for Wired
Telecommunications Carriers. The SBA
has developed a small business size
standard for this category, which is: All
such firms having 1,500 or fewer
employees. The most current Census
Bureau data, however, are from the last
economic census of 2002, and so we
will rely on the previous size standard,
Cable and Other Program Distribution,
which provides that a small entity is
one with $13.5 million or less in annual
receipts. Information available to us
indicates that there are approximately
850 of these licensees and operators that
do not generate revenue in excess of
$13.5 million annually. Therefore, we
estimate that there are approximately
850 small MDS (or BRS) providers as
defined by the SBA and the
Commission’s auction rules.
20. Educational institutions are
included in this analysis as small
entities; however, the Commission has
not defined a small business size
standard for ITFS (now EBS). In
addition, the term ‘‘small entity’’ under
SBREFA applies to small organizations
(nonprofits) and to small governmental
jurisdictions (cities, counties, towns,
townships, villages, school districts, and
special districts with populations of less
than 50,000). 5 U.S.C. 601(4)–(6). We do
not collect annual revenue data on ITFS
licensees. We estimate that there are
currently 2,032 ITFS (or EBS) licensees,
and all but 100 of these licenses are held
by educational institutions. Thus, the
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Commission estimates that at least 1,932
ITFS licensees are small businesses.
21. In the 1998 and 1999 LMDS
auctions, the Commission defined a
small business as an entity that had
annual average gross revenues of less
than $40 million in the previous three
calendar years. Moreover, the
Commission added an additional
classification for a ‘‘very small
business,’’ which was defined as an
entity that had annual average gross
revenues of less than $15 million in the
previous three calendar years. These
definitions of ‘‘small business’’ and
‘‘very small business’’ in the context of
the LMDS auctions have been approved
by the SBA. In the first LMDS auction,
104 bidders won 864 licenses. Of the
104 auction winners, 93 claimed status
as small or very small businesses. In the
LMDS re-auction, 40 bidders won 161
licenses. In addition, we note that, as a
general matter, the number of winning
bidders that qualify as small businesses
at the close of an auction does not
necessarily represent the number of
small businesses currently in service.
Also, the Commission does not
generally track subsequent business size
unless, in the context of assignments or
transfers, unjust enrichment issues are
implicated.
4. Description of Projected Reporting,
Record Keeping, and Other Compliance
Requirements for Small Entities
22. The FNPRM seeks comment on a
rule that would impose compliance
requirements on small ETCs. Small
ETCs currently have an obligation to
provide DTV transition notices on a
monthly basis to their Lifeline and Linkup customers. These obligations would
be increased by the rule contemplated
in this Further Notice, but would not
change in kind. Small ETCs will need to
spend money printing the notices, and
may either forgo advertising revenue as
a result of dedicating bill space to DTV
transition notices, or spend additional
money mailing the notices separately.
The FNPRM also seeks comment on a
rule that would impose compliance
requirements on small MVPDs. Small
MVPDs would be required to provide
on-air DTV transition education on their
systems. Production costs would likely
be minimal or nonexistent due to the
already-produced PSAs available in the
market. MVPDs may have to forgo
advertising revenue as a result of
dedicating available air time to DTV
transition notices, or spend money
reserving such time if they do not
already have advertising time available.
PO 00000
Frm 00070
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30595
5. Steps Taken To Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
23. 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. We seek comment on
the applicability of any of these
alternatives to affected small entities.
24. The requirements proposed in the
FNPRM would impose costs on small
ETCs and MVPDs, but would result in
wider knowledge about the DTV
transition, which could have an indirect
positive impact on other small entities,
including television broadcasters,
consumer electronics manufacturers and
retailers, and MVPDs themselves. We
invite small entities to submit
comments on how the Commission
could further minimize potential
burdens on small entities if the proposal
in the FNPRM is ultimately adopted.
6. Federal Rules That May Duplicate,
Overlap, or Conflict With the Proposed
Rules
25. None.
B. Initial Paperwork Reduction Act
Analysis
26. This document contains proposed
modified information collection
requirements. The Commission, as part
of its continuing effort to reduce
paperwork burdens, invites the general
public and the Office of Management
and Budget (‘‘OMB’’) to comment on the
information collection requirements
contained in this document, as required
by the Paperwork Reduction Act of
1995, Public Law 104–13. In addition,
pursuant to the Small Business
Paperwork Relief Act of 2002, we seek
specific comment on how we might
‘‘further reduce the information
collection burden for small business
concerns with fewer than 25
employees.’’
C. Ex Parte Rules
27. Permit-But-Disclose. This
proceeding will be treated as a ‘‘permitbut-disclose’’ proceeding subject to the
‘‘permit-but-disclose’’ requirements
under Section 1.1206(b) of the
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mstockstill on PROD1PC66 with PROPOSALS
Commission’s rules. Ex parte
presentations are permissible if
disclosed in accordance with
Commission rules, except during the
Sunshine Agenda period when
presentations, ex parte or otherwise, are
generally prohibited. Persons making
oral ex parte presentations are reminded
that a memorandum summarizing a
presentation must contain a summary of
the substance of the presentation and
not merely a listing of the subjects
discussed. More than a one- or twosentence description of the views and
arguments presented is generally
required. Additional rules pertaining to
oral and written presentations are set
forth in Section 1.1206(b).
D. Filing Requirements
28. Comments and Replies. Pursuant
to Sections 1.415 and 1.419 of the
Commission’s rules, interested parties
may file comments on or before June 27,
2008, and reply comments on or before
July 14, 2008 using: (1) The
Commission’s Electronic Comment
Filing System (‘‘ECFS’’), (2) the Federal
Government’s eRulemaking Portal, or (3)
by filing paper copies.
• Electronic Filers: Comments may be
filed electronically using the Internet by
accessing the ECFS: https://www.fcc.gov/
cgb/ecfs/ or the Federal eRulemaking
Portal: https://www.regulations.gov.
Filers should follow the instructions
provided on the Web site for submitting
comments.
• For ECFS filers, if multiple docket
or rulemaking numbers appear in the
caption of this proceeding, filers must
transmit one electronic copy of the
comments for each docket or
rulemaking number referenced in the
caption. In completing the transmittal
screen, filers should include their full
name, U.S. Postal Service mailing
address, and the applicable docket or
rulemaking number. Parties may also
submit an electronic comment by
Internet e-mail. To get filing
instructions, filers should send an email to ecfs@fcc.gov, and include the
following words in the body of the
message, ‘‘get form.’’ A sample form and
directions will be sent in response.
• Paper Filers: Parties who choose to
file by paper must file an original and
four copies of each filing. If more than
one docket or rulemaking number
appears in the caption of this
proceeding, filers must submit two
additional copies for each additional
docket or rulemaking number.
Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail
(although we continue to experience
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16:27 May 27, 2008
Jkt 214001
delays in receiving U.S. Postal Service
mail). All filings must be addressed to
the Commission’s Secretary, Office of
the Secretary, Federal Communications
Commission.
• The Commission’s contractor will
receive hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary at 236
Massachusetts Avenue, NE., Suite 110,
Washington, DC 20002. The filing hours
at this location are 8 a.m. to 7 p.m. All
hand deliveries must be held together
with rubber bands or fasteners. Any
envelopes must be disposed of before
entering the building.
• Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9300
East Hampton Drive, Capitol Heights,
MD 20743.
• U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 445 12th Street, SW.,
Washington, DC 20554.
29. Availability of Documents.
Comments, reply comments, and ex
parte submissions will be available for
public inspection 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. Documents will be available
electronically in ASCII, Word 97, and/
or Adobe Acrobat.
30. Accessibility Information. To
request information in accessible
formats (computer diskettes, large print,
audio recording, and Braille), send an email to fcc504@fcc.gov or call the FCC’s
Consumer and Governmental Affairs
Bureau at (202) 418–0530 (voice), (202)
418–0432 (TTY). This document can
also be downloaded in Word and
Portable Document Format (PDF) at:
https://www.fcc.gov.
E. Additional Information
31. 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.
III. Ordering Clauses
32. 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.
PO 00000
Frm 00071
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Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. E8–11889 Filed 5–27–08; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
50 CFR Part 17
[FWS–R2–ES–2008–0065; 1111 FY07 MO–
B2]
Endangered and Threatened Wildlife
and Plants; Initiation of Status Review
for the Northern Mexican Gartersnake
(Thamnophis eques megalops)
Fish and Wildlife Service,
Interior.
ACTION: Notice; initiation of status
review and solicitation of new
information.
AGENCY:
SUMMARY: We, the U.S. Fish and
Wildlife Service (Service), announce the
initiation of a status review for the
northern Mexican gartersnake
(Thamnophis eques megalops). Through
this action, we encourage all interested
parties to provide us information
regarding the status of, and any
potential threat to, the northern
Mexican gartersnake.
DATES: To allow us adequate time to
conduct this review, we request that
information be submitted on or before
July 14, 2008.
ADDRESSES: You may submit
information by one of the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• U.S. mail or hand-delivery: Public
Comments Processing, Attn: FWS–R2–
ES–2008–0065; Division of Policy and
Directives Management; U.S. Fish and
Wildlife Service; 4401 N. Fairfax Drive,
Suite 222; Arlington, VA 22203.
We will not accept e-mail or faxes. We
will post all information on https://
www.regulations.gov. This generally
means that we will post any personal
information you provide us (see the
Information Solicited section below for
more information).
FOR FURTHER INFORMATION CONTACT:
Steve Spangle, Field Supervisor,
Arizona Ecological Services Office, 2321
West Royal Palm Road, Suite 103,
Phoenix, AZ 85021–4951; telephone
602–242–0210; facsimile 602–242–2513.
If you use a telecommunications device
for the deaf (TDD), call the Federal
Information Relay Service (FIRS) at
800–877–8339.
E:\FR\FM\28MYP1.SGM
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Agencies
[Federal Register Volume 73, Number 103 (Wednesday, May 28, 2008)]
[Proposed Rules]
[Pages 30591-30596]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-11889]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 15 and 54
[MB Docket No. 07-148; FCC 08-119]
DTV Consumer Education Initiative
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Commission asks whether the eligible telecommunications
carrier (ETC) obligation to provide monthly digital television (DTV)
transition notices to low-income subscribers should be expanded to
require the provision of such notices to all subscribers, and whether
multichannel video programming distributors (MVPDs) should be required
to provide on-air DTV transition education on their systems.
DATES: Comments for this proceeding are due on or before June 27, 2008;
reply comments are due on or before July 14, 2008.
ADDRESSES: Federal Communications Commission, 445 12th Street, SW.,
Washington, DC 20554. You may submit comments, identified by MB Docket
No. 07-148, by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web Site: https://
www.fcc.gov/cgb/ecfs/. Follow the instructions for submitting comments.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by e-mail: FCC504@fcc.gov or phone: 202-418-
0530 or TTY: 202-418-0432.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
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
[[Page 30592]]
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
Further Notice of Proposed Rulemaking 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 Notice of Proposed Rulemaking
I. Further Notice of Proposed Rulemaking
1. As discussed in the Order on Reconsideration of the Consumer
Education Initiative Order, the revised ETC education rules require
that ETCs provide monthly transition notices to their low-income
(Lifeline/Link-Up) customers. This requirement is similar to the one
proposed by Chairmen Dingell and Markey in their Letter to the
Commission, in which they suggested that the Commission ``require, as
an interim measure, that telecommunications carriers that receive funds
under the Low Income Federal universal service program * * * notify
each of their low income customers of the digital transition and
include such a notice in their required Lifeline and Link-Up publicity
efforts.'' On April 15, 2008, during Chairman Martin's testimony before
the House Committee on Energy and Commerce's Subcommittee on
Telecommunications and the Internet, Congressman Fred Upton suggested
that the Commission explore revising these rules to require that ETCs
provide monthly notices to all of their subscribers, rather than just
low-income subscribers. Such a revision would ensure a wider reach for
DTV transition notices as the February 17, 2009, deadline approaches,
but could increase expenses for ETCs. What is the appropriate balance
for the Commission's Rules in this area? We seek comment on this
proposal.
2. The first Notice of Proposed Rulemaking, 72 FR 46014 August 16,
2007, in this proceeding sought comment on ``other initiatives that the
Commission can and should undertake to educate the public on the DTV
transition.'' In response to this request, some commenters proposed
that the Commission require MVPDs to provide on-air DTV transition
education on their systems. We seek comment on this proposal. As the
National Cable and Telecommunications Association (NCTA) has noted, the
cable industry, for instance, is already engaged in a ``$200 million
digital TV transition consumer education campaign, highlighted by
English and Spanish language television commercials.'' Should we
require MVPDs, such as cable and direct broadcast satellite operators,
to provide on-air DTV transition education on their systems as we have
for TV broadcasters? We seek comment on what entities should be covered
and the on-air educational efforts that should be required.
II. Procedural Matters
A. Initial Regulatory Flexibility Analysis
3. As required by the Regulatory Flexibility Act of 1980, as
amended (``RFA''), the Commission has prepared this Initial Regulatory
Flexibility Analysis (``IRFA'') of the possible economic impact on a
substantial number of small entities by the rules proposed in this
Further Notice of Proposed Rulemaking (``FNPRM''). Written public
comments are requested on this IRFA. Comments must be identified as
responses to the IRFA and must be filed by the deadlines for comments
on the Further Notice as indicated on the first page of the Order. The
Commission will send a copy of the Further Notice, including this IRFA,
to the Chief Counsel for Advocacy of the Small Business Administration
(``SBA''). In addition, the FNPRM and IRFA (or summaries thereof) will
be published in the Federal Register.
1. Need for, and Objectives of, the Proposals
4. This FNPRM seeks comment on a proposal to require that ETCs
provide monthly notices to all of their subscribers, rather than just
low-income subscribers as required by the current rules. It also seeks
comment on a proposal to require MVPDs to provide on-air DTV transition
education on their systems. It seeks comment on whether, as a policy
matter, the Commission should impose such requirements.
2. Legal Basis
5. The authority for the action proposed in this rulemaking is
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.
3. Description and Estimate of the Number of Small Entities to Which
the Proposals Will Apply
6. 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 ETCs. A description of these small entities, as well as an
estimate of the number of such small entities, is provided below.
7. 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.
8. 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
[[Page 30593]]
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.
9. Cable Television Distribution Services. Since 2007, these
services have been defined within the broad economic census category of
Wired Telecommunications Carriers; that category is defined as follows:
``This industry comprises establishments primarily engaged in operating
and/or providing access to transmission facilities and infrastructure
that they own and/or lease for the transmission of voice, data, text,
sound, and video using wired telecommunications networks. Transmission
facilities may be based on a single technology or a combination of
technologies.'' The SBA has developed a small business size standard
for this category, which is: All such firms having 1,500 or fewer
employees. To gauge small business prevalence for these cable services
we must, however, use current census data that are based on the
previous category of Cable and Other Program Distribution and its
associated size standard; that size standard was: All such firms having
$13.5 million or less in annual receipts. According to Census Bureau
data for 2002, there were a total of 1,191 firms in this previous
category that operated for the entire year. Of this total, 1,087 firms
had annual receipts of under $10 million, and 43 firms had receipts of
$10 million or more but less than $25 million. Thus, the majority of
these firms can be considered small.
10. Cable System Operators (Rate Regulation Standard). The
Commission has developed its own small business size standard for cable
system operators, for purposes of rate regulation. Under the
Commission's rules, a ``small cable company'' is one serving fewer than
400,000 subscribers nationwide. The most recent estimates indicate that
there were 1,439 cable operators who qualified as small cable system
operators at the end of 1995. Since then, some of those companies may
have grown to serve more than 400,000 subscribers, and others may have
been involved in transactions that caused them to be combined with
other cable operators. Consequently, the Commission estimates that
there are now fewer than 1,439 small entity cable system operators that
may be affected by the rules and policies adopted herein.
11. Cable System Operators (Telecom Act Standard). The
Communications Act of 1934, as amended, also contains a size standard
for small cable system operators, which is ``a cable operator that,
directly or through an affiliate, serves in the aggregate fewer than 1
percent of all subscribers in the United States and is not affiliated
with any entity or entities whose gross annual revenues in the
aggregate exceed $250,000,000.'' The Commission has determined that
there are 67,700,000 subscribers in the United States. Therefore, an
operator serving fewer than 677,000 subscribers shall be deemed a small
operator, if its annual revenues, when combined with the total annual
revenues of all its affiliates, do not exceed $250 million in the
aggregate. Based on available data, the Commission estimates that the
number of cable operators serving 677,000 subscribers or fewer, totals
1,450. The Commission neither requests nor collects information on
whether cable system operators are affiliated with entities whose gross
annual revenues exceed $250 million, and therefore is unable, at this
time, to estimate more accurately the number of cable system operators
that would qualify as small cable operators under the size standard
contained in the Communications Act of 1934.
12. Private Cable Operators (PCOs) also known as Satellite Master
Antenna Television (SMATV) Systems. PCOs, also known as SMATV systems
or private communication operators, are video distribution facilities
that use closed transmission paths without using any public right-of-
way. PCOs acquire video programming and distribute it via terrestrial
wiring in urban and suburban multiple dwelling units such as apartments
and condominiums, and commercial multiple tenant units such as hotels
and office buildings. The SBA definition of small entities for Cable
and Other Program Distribution includes PCOs and, thus, small entities
are defined as all such companies generating $13.5 million or less in
annual receipts. Currently, there are more than 150 members in the
Independent Multi-Family Communications Council (IMCC), the trade
association that represents PCOs. Individual PCOs often serve
approximately 3,000-4,000 subscribers, but the larger operations serve
as many as 15,000-55,000 subscribers. In total, PCOs currently serve
approximately one million subscribers. Because these operators are not
rate regulated, they are not required to file financial data with the
Commission. Furthermore, we are not aware of any privately published
financial information regarding these operators. Based on the estimated
number of operators and the estimated number of units served by the
largest ten PCOs, we believe that a substantial number of PCOs qualify
as small entities.
13. Satellite Carriers. The term ``satellite carrier'' includes
entities providing services as described in 17 U.S.C. 119(d)(6) using
the facilities of a satellite or satellite service licensed under part
25 of the Commission's rules to operate in Direct Broadcast Satellite
(``DBS'') or Fixed-Satellite Service (``FSS'') frequencies. As a
general practice, not mandated by any regulation, DBS licensees usually
own and operate their own satellite facilities as well as package the
programming they offer to their subscribers. In contrast, satellite
carriers using FSS facilities often lease capacity from another entity
that is licensed to operate the satellite used to provide service to
subscribers. These entities package their own programming and may or
may not be Commission licensees themselves. In addition, a third
situation may include an entity using a non-U.S. licensed satellite to
provide programming to subscribers in the United States pursuant to a
blanket earth station license. Since 2007, the SBA has recognized
satellite television distribution services within the broad economic
census category of Wired Telecommunications Carriers. The SBA has
developed a small business size standard for this category, which is:
All such firms having 1,500 or fewer employees. The most current Census
Bureau data, however, are from the last economic census of 2002, and we
will use those figures to gauge the prevalence of small businesses in
this category. According to Census Bureau data for 2002, there were a
total of 1,191 firms in this previous category that operated for the
entire year. Of this total, 1,087 firms had annual receipts of
[[Page 30594]]
under $10 million, and 43 firms had receipts of $10 million or more but
less than $25 million. Thus, the majority of these firms can be
considered small.
14. Direct Broadcast Satellite (DBS) Service. DBS service is a
nationally distributed subscription service that delivers video and
audio programming via satellite to a small parabolic ``dish'' antenna
at the subscriber's location. Because DBS provides subscription
services, DBS falls within the SBA-recognized definition of Wired
Telecommunications Carriers. The SBA has developed a small business
size standard for this category, which is: All such firms having 1,500
or fewer employees. The most current Census Bureau data, however, are
from the last economic census of 2002, and so we will rely on the
previous size standard, Cable and Other Program Distribution, which
provides that a small entity is one with $13.5 million or less in
annual receipts. Currently, only two operators--DirecTV and EchoStar
Communications Corporation (``EchoStar'')--hold licenses to provide DBS
service, which requires a great investment of capital for operation.
Both currently offer subscription services and report annual revenues
that are in excess of the threshold for a small business. Because DBS
service requires significant capital, we believe it is unlikely that a
small entity as defined by the SBA would have the financial wherewithal
to become a DBS licensee. Nevertheless, given the absence of specific
data on this point, we acknowledge the possibility that there are
entrants in this field that may not yet have generated $13.5 million in
annual receipts, and therefore may be categorized as a small business,
if independently owned and operated.
15. Fixed-Satellite Service (``FSS''). The FSS is a
radiocommunication service between earth stations at a specified fixed
point or between any fixed point within specified areas and one or more
satellites. The FSS, which utilizes many earth stations that
communicate with one or more space stations, may be used to provide
subscription video service. Therefore, to the extent FSS frequencies
are used to provide subscription services, FSS falls within the SBA-
recognized definition of Wired Telecommunications Carriers. The SBA has
developed a small business size standard for this category, which is:
All such firms having 1,500 or fewer employees. The most current Census
Bureau data, however, are from the last economic census of 2002, and so
we will rely on the previous size standard, Cable and Other Program
Distribution, which provides that a small entity is one with $13.5
million or less in annual receipts. Although a number of entities are
licensed in the FSS, not all such licensees use FSS frequencies to
provide subscription services. Both of the DBS licensees (EchoStar and
DirecTV) have indicated interest in using FSS frequencies to broadcast
signals to subscribers. It is possible that other entities could
similarly use FSS frequencies, although we are not aware of any
entities that might do so.
16. Home Satellite Dish (HSD) Service. Because HSD provides
subscription services, HSD falls within the SBA-recognized definition
of Wired Telecommunications Carriers. The SBA has developed a small
business size standard for this category, which is: All such firms
having 1,500 or fewer employees. The most current Census Bureau data,
however, are from the last economic census of 2002, and so we will rely
on the previous size standard, Cable and Other Program Distribution,
which provides that a small entity is one with $13.5 million or less in
annual receipts. HSD or the large dish segment of the satellite
industry is the original satellite-to-home service offered to
consumers, and involves the home reception of signals transmitted by
satellites operating generally in the C-band frequency. Unlike DBS,
which uses small dishes, HSD antennas are between four and eight feet
in diameter and can receive a wide range of unscrambled (free)
programming and scrambled programming purchased from program packagers
that are licensed to facilitate subscribers' receipt of video
programming. There are approximately 30 satellites operating in the C-
band, which carry more than 500 channels of programming combined;
approximately 350 channels are available free of charge and 150 are
scrambled and require a subscription. HSD is difficult to quantify in
terms of annual revenue. HSD owners have access to program channels
placed on C-band satellites by programmers for receipt and distribution
by MVPDs. Commission data show that, as of June 2005, there were
206,358 households authorized to receive HSD service. The Commission
has no information regarding the annual revenue of the four C-Band
distributors.
17. Open Video Systems (OVS). The OVS framework provides
opportunities for the distribution of video programming other than
through cable systems. Because OVS operators provide subscription
services, OVS falls within the SBA-recognized definition of Wired
Telecommunications Carriers. The SBA has developed a small business
size standard for this category, which is: All such firms having 1,500
or fewer employees. The most current Census Bureau data, however, are
from the last economic census of 2002, and so we will rely on the
previous size standard, Cable and Other Program Distribution, which
provides that a small entity is one with $13.5 million or less in
annual receipts. The Commission has certified 25 OVS operators with
some now providing service. Broadband service providers (BSPs) are
currently the only significant holders of OVS certifications or local
OVS franchises, even though OVS is one of four statutorily-recognized
options for local exchange carriers (LECs) to offer video programming
services. As of June 2005, BSPs served approximately 1.4 million
subscribers, representing 1.5 percent of all MVPD households.
Affiliates of Residential Communications Network, Inc. (``RCN''), which
serves about 371,000 subscribers as of June 2005, is currently the
largest BSP and 14th largest MVPD. RCN received approval to operate OVS
systems in New York City, Boston, Washington, DC and other areas. The
Commission does not have financial information regarding the entities
authorized to provide OVS, some of which may not yet be operational. We
thus believe that at least some of the OVS operators may qualify as
small entities.
18. Wireless Cable Systems. Wireless cable systems use the
Broadband Radio Service (``BRS''), formerly Multipoint Distribution
Service (``MDS''), and Educational Broadband Service (``EBS''),
formerly Instructional Television Fixed Service (``ITFS''), frequencies
in the 2 GHz band to transmit video programming and provide broadband
services to residential subscribers. These services were originally
designed for the delivery of multichannel video programming, similar to
that of traditional cable systems, but over the past several years
licensees have focused their operations instead on providing two-way
high-speed Internet access services. Nonetheless, they appear to fall
within the SBA-recognized definition of Wired Telecommunications
Carriers. The SBA has developed a small business size standard for this
category, which is: All such firms having 1,500 or fewer employees. The
most current Census Bureau data, however, are from the last economic
census of 2002, and so we will rely on the previous size standard,
Cable and Other Program Distribution, which provides that a small
entity is one with $13.5 million or less in annual receipts. We
estimate that the number of wireless cable subscribers is
[[Page 30595]]
approximately 100,000, as of March 2005. Id. Local Multipoint
Distribution Service (``LMDS'') is a fixed broadband point-to-
multipoint microwave service that provides for two-way video
telecommunications.
19. Wireless Cable Systems (Commission Auction Standard). The
Commission has defined small MDS (now BRS) and LMDS entities in the
context of Commission license auctions. In the 1996 MDS auction, the
Commission defined a small business as an entity that had annual
average gross revenues of less than $40 million in the previous three
calendar years. This definition of a small entity in the context of MDS
auctions has been approved by the SBA. In the MDS auction, 67 bidders
won 493 licenses. Of the 67 auction winners, 61 claimed status as a
small business. In addition to the 48 small businesses that have held
BTA authorizations, there are approximately 392 incumbent MDS licensees
that have gross revenues that are not more than $40 million and are
thus considered small entities. MDS licensees and wireless cable
operators that did not participate in the MDS auction must rely on the
SBA definition of small entities for Wired Telecommunications Carriers.
The SBA has developed a small business size standard for this category,
which is: All such firms having 1,500 or fewer employees. The most
current Census Bureau data, however, are from the last economic census
of 2002, and so we will rely on the previous size standard, Cable and
Other Program Distribution, which provides that a small entity is one
with $13.5 million or less in annual receipts. Information available to
us indicates that there are approximately 850 of these licensees and
operators that do not generate revenue in excess of $13.5 million
annually. Therefore, we estimate that there are approximately 850 small
MDS (or BRS) providers as defined by the SBA and the Commission's
auction rules.
20. Educational institutions are included in this analysis as small
entities; however, the Commission has not defined a small business size
standard for ITFS (now EBS). In addition, the term ``small entity''
under SBREFA applies to small organizations (nonprofits) and to small
governmental jurisdictions (cities, counties, towns, townships,
villages, school districts, and special districts with populations of
less than 50,000). 5 U.S.C. 601(4)-(6). We do not collect annual
revenue data on ITFS licensees. We estimate that there are currently
2,032 ITFS (or EBS) licensees, and all but 100 of these licenses are
held by educational institutions. Thus, the Commission estimates that
at least 1,932 ITFS licensees are small businesses.
21. In the 1998 and 1999 LMDS auctions, the Commission defined a
small business as an entity that had annual average gross revenues of
less than $40 million in the previous three calendar years. Moreover,
the Commission added an additional classification for a ``very small
business,'' which was defined as an entity that had annual average
gross revenues of less than $15 million in the previous three calendar
years. These definitions of ``small business'' and ``very small
business'' in the context of the LMDS auctions have been approved by
the SBA. In the first LMDS auction, 104 bidders won 864 licenses. Of
the 104 auction winners, 93 claimed status as small or very small
businesses. In the LMDS re-auction, 40 bidders won 161 licenses. In
addition, we note that, as a general matter, the number of winning
bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently
in service. Also, the Commission does not generally track subsequent
business size unless, in the context of assignments or transfers,
unjust enrichment issues are implicated.
4. Description of Projected Reporting, Record Keeping, and Other
Compliance Requirements for Small Entities
22. The FNPRM seeks comment on a rule that would impose compliance
requirements on small ETCs. Small ETCs currently have an obligation to
provide DTV transition notices on a monthly basis to their Lifeline and
Link-up customers. These obligations would be increased by the rule
contemplated in this Further Notice, but would not change in kind.
Small ETCs will need to spend money printing the notices, and may
either forgo advertising revenue as a result of dedicating bill space
to DTV transition notices, or spend additional money mailing the
notices separately. The FNPRM also seeks comment on a rule that would
impose compliance requirements on small MVPDs. Small MVPDs would be
required to provide on-air DTV transition education on their systems.
Production costs would likely be minimal or nonexistent due to the
already-produced PSAs available in the market. MVPDs may have to forgo
advertising revenue as a result of dedicating available air time to DTV
transition notices, or spend money reserving such time if they do not
already have advertising time available.
5. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
23. 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. We seek comment on the applicability of any of these
alternatives to affected small entities.
24. The requirements proposed in the FNPRM would impose costs on
small ETCs and MVPDs, but would result in wider knowledge about the DTV
transition, which could have an indirect positive impact on other small
entities, including television broadcasters, consumer electronics
manufacturers and retailers, and MVPDs themselves. We invite small
entities to submit comments on how the Commission could further
minimize potential burdens on small entities if the proposal in the
FNPRM is ultimately adopted.
6. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
25. None.
B. Initial Paperwork Reduction Act Analysis
26. This document contains proposed modified information collection
requirements. The Commission, as part of its continuing effort to
reduce paperwork burdens, invites the general public and the Office of
Management and Budget (``OMB'') to comment on the information
collection requirements contained in this document, as required by the
Paperwork Reduction Act of 1995, Public Law 104-13. In addition,
pursuant to the Small Business Paperwork Relief Act of 2002, we seek
specific comment on how we might ``further reduce the information
collection burden for small business concerns with fewer than 25
employees.''
C. Ex Parte Rules
27. Permit-But-Disclose. This proceeding will be treated as a
``permit-but-disclose'' proceeding subject to the ``permit-but-
disclose'' requirements under Section 1.1206(b) of the
[[Page 30596]]
Commission's rules. Ex parte presentations are permissible if disclosed
in accordance with Commission rules, except during the Sunshine Agenda
period when presentations, ex parte or otherwise, are generally
prohibited. Persons making oral ex parte presentations are reminded
that a memorandum summarizing a presentation must contain a summary of
the substance of the presentation and not merely a listing of the
subjects discussed. More than a one- or two-sentence description of the
views and arguments presented is generally required. Additional rules
pertaining to oral and written presentations are set forth in Section
1.1206(b).
D. Filing Requirements
28. Comments and Replies. Pursuant to Sections 1.415 and 1.419 of
the Commission's rules, interested parties may file comments on or
before June 27, 2008, and reply comments on or before July 14, 2008
using: (1) The Commission's Electronic Comment Filing System
(``ECFS''), (2) the Federal Government's eRulemaking Portal, or (3) by
filing paper copies.
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: https://www.fcc.gov/cgb/ecfs/ or the Federal eRulemaking Portal: https://www.regulations.gov. Filers
should follow the instructions provided on the Web site for submitting
comments.
For ECFS filers, if multiple docket or rulemaking numbers
appear in the caption of this proceeding, filers must transmit one
electronic copy of the comments for each docket or rulemaking number
referenced in the caption. In completing the transmittal screen, filers
should include their full name, U.S. Postal Service mailing address,
and the applicable docket or rulemaking number. Parties may also submit
an electronic comment by Internet e-mail. To get filing instructions,
filers should send an e-mail to ecfs@fcc.gov, and include the following
words in the body of the message, ``get form.'' A sample form and
directions will be sent in response.
Paper Filers: Parties who choose to file by paper must
file an original and four copies of each filing. If more than one
docket or rulemaking number appears in the caption of this proceeding,
filers must submit two additional copies for each additional docket or
rulemaking number.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail (although we continue to experience delays in receiving U.S.
Postal Service mail). All filings must be addressed to the Commission's
Secretary, Office of the Secretary, Federal Communications Commission.
The Commission's contractor will receive hand-delivered or
messenger-delivered paper filings for the Commission's Secretary at 236
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be
held together with rubber bands or fasteners. Any envelopes must be
disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority
mail must be addressed to 445 12th Street, SW., Washington, DC 20554.
29. Availability of Documents. Comments, reply comments, and ex
parte submissions will be available for public inspection 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. Documents
will be available electronically in ASCII, Word 97, and/or Adobe
Acrobat.
30. Accessibility Information. To request information in accessible
formats (computer diskettes, large print, audio recording, and
Braille), send an e-mail to fcc504@fcc.gov or call the FCC's Consumer
and Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-
0432 (TTY). This document can also be downloaded in Word and Portable
Document Format (PDF) at: https://www.fcc.gov.
E. Additional Information
31. 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.
III. Ordering Clauses
32. 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.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. E8-11889 Filed 5-27-08; 8:45 am]
BILLING CODE 6712-01-P