DTV Consumer Education Initiative, 30591-30596 [E8-11889]

Download as PDF 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. mstockstill on PROD1PC66 with PROPOSALS 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 VerDate Aug<31>2005 16:27 May 27, 2008 Jkt 214001 $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: PO 00000 Frm 00066 Fmt 4702 Sfmt 4702 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 E:\FR\FM\28MYP1.SGM 28MYP1 30592 Federal Register / Vol. 73, No. 103 / Wednesday, May 28, 2008 / Proposed Rules 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 mstockstill on PROD1PC66 with PROPOSALS 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. VerDate Aug<31>2005 16:27 May 27, 2008 Jkt 214001 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 PO 00000 Frm 00067 Fmt 4702 Sfmt 4702 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 E:\FR\FM\28MYP1.SGM 28MYP1 mstockstill on PROD1PC66 with PROPOSALS Federal Register / Vol. 73, No. 103 / Wednesday, May 28, 2008 / Proposed Rules 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 VerDate Aug<31>2005 16:27 May 27, 2008 Jkt 214001 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 PO 00000 Frm 00068 Fmt 4702 Sfmt 4702 30593 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 E:\FR\FM\28MYP1.SGM 28MYP1 mstockstill on PROD1PC66 with PROPOSALS 30594 Federal Register / Vol. 73, No. 103 / Wednesday, May 28, 2008 / Proposed Rules 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 VerDate Aug<31>2005 16:27 May 27, 2008 Jkt 214001 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 PO 00000 Frm 00069 Fmt 4702 Sfmt 4702 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 E:\FR\FM\28MYP1.SGM 28MYP1 mstockstill on PROD1PC66 with PROPOSALS Federal Register / Vol. 73, No. 103 / Wednesday, May 28, 2008 / Proposed Rules 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 VerDate Aug<31>2005 16:27 May 27, 2008 Jkt 214001 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 Fmt 4702 Sfmt 4702 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 E:\FR\FM\28MYP1.SGM 28MYP1 30596 Federal Register / Vol. 73, No. 103 / Wednesday, May 28, 2008 / Proposed Rules 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 VerDate Aug<31>2005 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 Fmt 4702 Sfmt 4702 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 28MYP1

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]


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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
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