Implementing the Provisions of the Communications Act of 1934, as Enacted by the Twenty-First Century Communications and Video Accessibility Act of 2010, 13800-13849 [2011-5348]
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FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Parts 1, 6, 7, and 8
[CG Docket No. 10–213; WT Docket No. 96–
198; CG Docket No. 10–145; FCC 11–37]
Implementing the Provisions of the
Communications Act of 1934, as
Enacted by the Twenty-First Century
Communications and Video
Accessibility Act of 2010
Federal Communications
Commission.
ACTION: Proposed rule.
AGENCY:
In this document, the
Commission proposes to adopt rules
that implement provisions in section
104 of the Twenty-First Century
Communications and Video
Accessibility Act of 2010 (CVAA), the
most significant piece of accessibility
legislation since the passage of the
Americans with Disabilities Act in 1990.
This proceeding would update and
amend the Commission’s rules to ensure
that individuals with disabilities are
able to fully utilize advanced
communications services (ACS) and
equipment and networks used for such
services. Specifically, we seek comment
on ways to implement the CVAA’s
requirements on providers of ACS and
manufacturers of equipment used for
ACS to make their services and products
accessible to people with disabilities.
The intended effect is to promote rapid
deployment of and universal access to
broadband services for all Americans
across the country, because broadband
technology can stimulate economic
growth and provide opportunity for all
Americans.
DATES: Submit comments on or before
April 13, 2011. Submit reply comments
on or before May 13, 2011.
ADDRESSES: Federal Communications
Commission, 445 12th Street, SW.,
Washington, DC 20554. A copy of any
comments on the Paperwork Reduction
Act information collection requirements
contained herein should be submitted to
the Federal Communications
Commission via e-mail to PRA@fcc.gov.
You may submit comments, identified
by FCC 11–37, or by CG Docket No. 10–
213, WT Docket No. 96–198, CG Docket
No. 10–145, 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.
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• 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:
David Hu, Broadband Division, Wireless
Telecommunications Bureau, FCC at
(202) 418–7120 or via the Internet to
David.Hu@fcc.gov, or Rosaline
Crawford, Disability Rights Office,
Consumer and Governmental Affairs
Bureau, FCC at (202) 418–2075 or via
the Internet to
Rosaline.Crawford@fcc.gov. For
additional information concerning the
Paperwork Reduction Act information
collection requirements contained in
this document, contact Judith B.
Herman at (202) 418–0214, or submit
your PRA comments via the Internet at
PRA@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Notice of
Proposed Rulemaking, FCC 11–37,
adopted on March 2, 2011, and released
on March 3, 2011. The full text of this
document is available for inspection
and copying during normal business
hours in the FCC Reference Information
Center, Room CY–A257, 445 12th Street,
SW., Washington, DC 20554. The
complete text may be purchased from
the Commission’s duplicating
contractor, Best Copy and Printing, Inc.
(BCPI), Portals II, 445 12th Street, SW.,
Room CY–B402, Washington, DC 20554,
(202) 488–5300, facsimile (202) 488–
5563, or via e-mail at fcc@bcpiweb.com.
The complete text is also available on
the Commission’s Web site at https://
wireless.fcc.gov/edocs_public/
attachment/FCC-11-37A1doc. This full
text may also be downloaded at: https://
wireless.fcc.gov/releases.html.
Alternative formats (computer diskette,
large print, audio cassette, and Braille)
are available by contacting Brian Millin
at (202) 418–7426, TTY (202) 418–7365,
or via e-mail to bmillin@fcc.gov.
Summary
I. Introduction and Overview
1. This Notice of Proposed
Rulemaking (‘‘NPRM’’) initiates a
proceeding to update the Commission’s
rules to ensure that the 54 million
individuals with disabilities are able to
fully utilize advanced communications
services and equipment and networks
used for such services. Also, this NPRM
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proposes to adopt rules that implement
provisions in section 104 of the
‘‘Twenty-First Century Communications
and Video Accessibility Act of 2010’’
(hereinafter referred to as the ‘‘CVAA’’),
Public Law 111–260, 124 Stat. 2751
(2010), the most significant piece of
accessibility legislation since the
passage of the Americans with
Disabilities Act in 1990 (‘‘ADA’’). (See
also Public Law 111–265, 124 Stat. 2795
(2010) (making technical corrections to
the CVAA)).
2. In explaining the need for the
CVAA, Congress noted that the
communications marketplace has
undergone a ‘‘fundamental
transformation’’ since Congress acted to
ensure access to telecommunications
services and equipment by people with
disabilities as part of the
Telecommunications Act of 1996. See S.
Rep. No. 111–386 (2010) and H.R. Rep.
No. 111–563 (2010). Specifically,
Congress stated that since it added
section 255 to the Communications Act
of 1934, as amended (hereinafter
referred to as ‘‘the Communications Act’’
or ‘‘the Act’’), ‘‘Internet-based and digital
technologies * * * driven by growth in
broadband * * * are now pervasive,
offering innovative and exciting ways to
communicate and share information.’’
Congress found, however, that people
with disabilities often have not shared
in the benefits of this rapid
technological advancement and that
they face disproportionately higher rates
of unemployment and poverty than
those without disabilities. Recent
surveys confirmed this finding, showing
a gap of 38 percentage points in the
rates of employment of working-age
people with disabilities and those
without disabilities (21% v. 59%) and a
gap of 27 percentage points in the rates
of Internet access (54% v. 81%).
3. These trends are even more
troubling when one considers the pace
at which the communications
marketplace is changing and how we as
a society are becoming more dependent
on such technologies to succeed in the
workplace and to manage our daily
lives. Statistics show, for example, that
more than ever, Americans rely on their
mobile phones for much more than
phone service. Increasingly, wireless
handsets have evolved into multi-media
devices capable of accessing the
Internet, sending e-mails or text
messages, downloading music, and
viewing streaming video programming
that can, for example, enable distance
education and telemedicine. As
described in the National Broadband
Plan, one of the Commission’s most
important policy objectives is the rapid
deployment of and universal access to
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broadband services for all Americans
across the country, because broadband
technology can stimulate economic
growth and provide opportunity for all
Americans. To that end, the
recommendations in the National
Broadband Plan were consistent with
the objectives set forth in the CVAA.
This law will bring existing
communication laws protecting people
with disabilities in line with 21st
Century technologies by ensuring that
people with disabilities are not left
behind and that they will be able to
share fully in the economic, social, and
civic benefits of broadband.
4. This NPRM seeks comment on the
way in which we should implement the
requirements of sections 716 and 717,
which were added by section 104 of
Title I of the CVAA. The statute requires
the Commission to adopt rules within
one year of enactment. section 716
requires that providers of ‘‘advanced
communications services’’ (or ‘‘ACS’’)
and manufacturers of equipment used
for ACS make their services and
products accessible to people with
disabilities, unless it is not achievable to
do so. The CVAA provides flexibility to
the industry by allowing covered
entities to comply with section 716 by
either building access features into their
equipment or services or relying on
third party applications, peripheral
devices, software, hardware, or
customer premises equipment (or
‘‘CPE’’) that is available to individuals
with disabilities at nominal cost. If such
compliance is not achievable, covered
entities must ensure that their
equipment and services are compatible
with ‘‘existing peripheral devices or
specialized customer premises
equipment’’ commonly used by persons
with disabilities to achieve access,
unless it is not achievable to do so.
Section 717 requires that the
Commission establish new
recordkeeping and enforcement
procedures for manufacturers and
providers subject to section 255 and
section 716. Appendix D contains the
full text of the CVAA as enacted (Pub.
L. 111–260 and Pub. L. 111–265).
5. While section 255 of the Act will
be the starting point for our
implementation of these sections, our
proposed approach reflects several
important differences between section
255 and section 716. First, section 716
covers a broader scope of services and
related equipment than section 255. In
addition, relative to section 255, section
716 requires a higher standard of
achievement for covered entities but
also allows for greater flexibility in how
to accomplish these requirements. In the
NPRM, we propose to adopt a new rule
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part to implement sections 716 and 717
of the Act and to amend the rules
implementing section 255 of the Act to
incorporate any relevant definitional
changes in section 716 and establish the
new recordkeeping and enforcement
procedures set forth in section 717. The
regulatory oversight we propose in this
proceeding is not intended to prejudge
the scope of the Commission’s authority
in other proceedings that derive from
different statutory grants of authority.
6. The NPRM also seeks comment on
section 718, which is effective three
years after the date of enactment of the
CVAA and requires manufacturers and
service providers to make Internet
browsers built into mobile phones
accessible to people who are blind or
have visual impairments. Specifically,
the NPRM seeks input on what steps the
Commission and stakeholders can take
to ensure that manufacturers and service
providers can meet their obligations
when section 718 goes into effect in
2013.
II. Background
7. Section 255 of the Act, which was
added by the Telecommunications Act
of 1996, requires manufacturers of
telecommunications equipment and
providers of telecommunications
services to ensure that their equipment
and services are accessible to and usable
by people with disabilities, if readily
achievable. When the accessibility
requirements of section 255 are not
readily achievable, manufacturers and
service providers must ensure
compatibility with existing peripheral
devices or specialized CPE commonly
used by individuals with disabilities, if
readily achievable. A related provision
in section 251(a)(2) of the Act prohibits
a telecommunications carrier from
installing network features, functions or
capabilities that do not comply with the
guidelines and standards established
pursuant to section 255.
8. Section 255 directed the United
States Access Board (‘‘Access Board’’) to
work with the Commission to establish
guidelines for the accessibility of
telecommunications equipment and
CPE within 18 months of enactment. In
June 1996, the Access Board convened
the Telecommunications Access
Advisory Committee (TAAC), a federal
advisory committee consisting of
consumer, industry, and government
stakeholders, for this purpose. The
TAAC delivered its final report to the
Access Board in January 1997, which
the Access Board then used to develop
its section 255 guidelines. In September
1999, the Commission adopted a Report
and Order adding parts 6 and 7 to its
rules to implement section 255, in large
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part incorporating the Access Board’s
guidelines for telecommunications
equipment and customer premises
equipment (‘‘CPE’’). In addition to
drawing heavily on these guidelines for
its rules implementing section 255 of
the Act on telecommunications
equipment and CPE (in part 6 of its
rules), the Commission utilized the
general principles contained in these
guidelines to outline the general
obligations of telecommunications
service providers. In part 7 of these
rules, the Commission also used its
ancillary jurisdiction to adopt rules
relating to voicemail and interactive
voice response providers and equipment
manufacturers. In 2007, the Commission
extended its section 255 accessibility
rules to interconnected Voice-overInternet Protocol (‘‘VoIP’’) service
providers and equipment
manufacturers.
9. The rules adopted to implement
section 255 require that where readily
achievable, manufacturers and service
providers must evaluate the
accessibility, usability, and
compatibility features of covered
services and equipment; incorporate
such evaluation throughout product
design, development, and fabrication, as
early and consistently as possible; and
identify barriers to accessibility and
usability as part of the product design
and development process. The rules
also provide that where readily
achievable, manufacturers and service
providers must ensure that product and
service information and documentation
provided to customers is accessible to
customers with disabilities. In addition,
under the rules, equipment
manufacturers must pass through crossmanufacturer, nonproprietary, industrystandard codes, translation protocols,
formats or other information necessary
to provide telecommunications in an
accessible format, where readily
achievable. The rules also contain an
informal complaint procedure by which
manufacturers and service providers
must attempt to resolve the
complainant’s concerns and respond to
the Commission within 30 days.
10. In 2006, the Access Board
initiated a review of its accessibility
guidelines for telecommunications
equipment and CPE covered under
section 255 of the Act and its standards
for electronic and information
technology covered under section 508 of
the Rehabilitation Act. Under section
508, federal agencies must ‘‘develop,
procure, maintain, and use’’ electronic
and information technologies that are
accessible to people with disabilities,
unless doing so would cause an undue
burden. The goal of this review was to
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bring the section 255 and section 508
guidelines and standards up to date and
to harmonize them with each other and
international accessibility standards.
Again, the Access Board established an
advisory board of interested
stakeholders for this purpose, and in
April 2008, the Telecommunications
and Electronic and Information
Technology Advisory Committee
(‘‘TEITAC’’) issued its final report,
containing a set of recommended
updates to these guidelines and
standards. In March 2010, the Access
Board released for public comment draft
information and communication
technology (‘‘ICT’’) guidelines and
standards, which were based on these
stakeholder recommendations.
11. During the spring of 2010, the
Consumer and Governmental Affairs
Bureau (‘‘CGB’’) and the Wireless
Telecommunications Bureau (‘‘WTB’’)
(‘‘the Bureaus’’) held two workshops to
explore the telecommunications access
needs of people with disabilities, along
with solutions to address these barriers.
At the first of these, held on May 13,
2010, the Commission received
feedback on expanding disability access
to wireless telecommunications; at the
second, held on June 15, 2010, young
adults who are deaf-blind discussed the
barriers they experience in accessing
telecommunications and in obtaining
information about accessible
technologies.
12. Building on those workshops, on
July 19, 2010, the Bureaus issued a
public notice in DA 10–1324, in CG
Docket No. 10–145 expressing the
concerns ‘‘that people who are blind or
have other vision disabilities have few
accessible and affordable wireless
phone options’’ and ‘‘that many wireless
technologies may not be compatible
with Braille displays needed by
individuals who are deaf-blind.’’ The
July public notice sought comment on,
among other things, the barriers faced
by these populations, the cost and
feasibility of technical solutions, and
the actions that the agency should take
to address the current lack of access.
The Bureaus received over 200
submissions in the record from
consumers, consumer groups, trade
associations, and individual companies,
many of whom provided details about
the lack of access to basic and smart
phones. While staff continues to
consider the steps the agency should
take to address those concerns, we have
incorporated the record from the July
public notice into the record of this
proceeding because the record in CG
Docket No. 10–145 is particularly
relevant and may inform our
understanding of the issues raised here,
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including the difficulties that people
with disabilities face in finding
accessible products and getting the
technical and customer support that
they need in today’s marketplace.
13. On October 21, 2010, CGB and
WTB issued a public notice in DA 10–
2029, seeking input on key provisions in
sections 716, 717, and 718 of the
Communications Act, as amended by
the CVAA. The Bureaus received 24
comments and 25 reply comments,
which have helped to shape the
development of this NPRM.
III. Statutory Definitions
A. Scope of Coverage
1. Background
14. Section 716 of the Act covers a
broad array of manufacturers of
equipment and providers of services
that are not covered under section 255.
As discussed in more detail below, the
requirements of section 716 apply to the
manufacturers of equipment used for
non-interconnected VoIP services,
electronic messaging services, and
interoperable video conferencing
services (all of which are ‘‘advanced
communications services’’ as defined in
section 3(1) of the Act) and the
providers of those services. (Although
interconnected VoIP service also
constitutes an ACS, such service is
subject to section 255 of the Act and
thus need not comply with the
requirements of section 716.) We agree
with AT&T’s statement that ‘‘section 716
reflects the reality that ACS is delivered
in a complex Internet ecosystem’’ and
that ‘‘[a]ccessibility obligations must be
shared by all entities in that ecosystem
for consumers to have an accessible
experience.’’ We discuss the evolution of
the ‘‘complex Internet ecosystem’’ below
and seek further comment on how we
should interpret section 716
requirements, in light of this evolution
and the statute’s broader purposes of
ensuring that ACS and equipment used
for ACS is accessible to and usable by
people with disabilities.
15. Since section 255 was first
enacted, communication technology has
changed significantly, both in terms of
its usage of the Internet and packetswitched networks instead of circuitswitched networks and in its common
architecture. In many cases,
communication devices had a single
function, and were created by a single
manufacturer and often closely tied to a
specific communication service or
network. As the fixed and mobile
Internet has evolved, mass-market
communication devices are now often
general-purpose computers or devices
such as smart phones incorporating
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aspects of general-purpose computers,
with an architecture reflecting the
evolution of computer technology. This
architecture has been common for
personal computers since the 1980s, but
has more recently also made its way
into mobile devices such as smart
phones and tablets, and into
entertainment devices such as game
consoles and set-top boxes. In all of
these cases, systems can be divided into
at least five components that can be
pictured, roughly, as layers, with the
hardware at the bottom and the
application and services at the top:
• Hardware (commonly referred to as
the ‘‘device’’): Every advanced
communications service relies on
hardware with general-purpose
computing functionality. It typically
includes a computing component
(‘‘CPU’’), several kinds of memory, one
or more network interfaces (cellular,
IEEE 802.11 ‘‘WiFi,’’ Ethernet, Bluetooth,
etc.), built-in peripherals such as
keyboards and displays, and both
generic and dedicated-purpose
interfaces to external peripherals. A
common example of a generic interface
is a USB interface, as it can support just
about any input or output technology,
from audio to keyboards and cameras. A
dedicated-purpose interface can only
support one media type, such as audio.
• Operating system (‘‘OS’’): The OS
manages the system resources
enumerated above and provides
common functionality, such as network
protocols, to applications. Almost all
devices with a CPU have an OS.
• User interface layer: Most modern
devices have a separate user interface
(‘‘UI’’) layer upon which almost all
applications rely to create their
graphical user interface. Currently, the
OS and user interface layer are typically
provided as a package and are often
referred to collectively as the OS, but
this is not always the case. For example,
at least one common OS allows users to
replace the user interface layer. In many
cases, web browsers are considered to
be part of the UI layer although they
themselves are also an application.
• Application (commonly referred to
as an ‘‘app’’): Software is used to
implement the actual advanced
communications functionality. The
software may be embedded into the
device and non-removable, installed by
the system integrator or user, or reside
in the cloud.
• Network services: Advanced
communication applications, such as
VoIP, rely on network services to
interconnect users. These networks
perform many functions, ranging from
user authentication and authorization to
call routing and media storage. In many
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cases, such network services simply
route the call signaling information and
do not touch the actual media
exchanged. In these cases, the service
itself may not know or care what kind
of media (audio, video, text) is
exchanged between communicating end
systems. In other cases, the network
services may perform more than
transport functions and offer video,
voice, and other data capabilities.
While the particulars of the above
components have evolved, the basic
architecture has remained stable for
several decades and there are no
obvious successors under development
in the research community. Thus, it
appears reasonably safe to assume that
this division will continue for the
immediate future, although we note that
the components listed above overlap
with each other.
16. Because each of the above
components may be created by a
different manufacturer and sold
separately, this division has three major
consequences. First, a manufacturer or
provider of one component may have
limited ability to know which other
components are being used to deliver an
advanced communications service. For
example, a PC- and web-based
collaboration service can run on most
personal computers, using an almost
infinite set of combinations of hardware,
operating systems and web browsers.
Second, components of the service can
change over time. Users can often
upgrade their hardware, OS, or
application, without consulting with the
manufacturer or provider of the other
components. Third, the accessibility
features of each component are likely to
evolve over time. Manufacturers of
hardware, OS, and user interface layers
may not know whether the components
they produce will be used for advanced
communications services in the future
and for which ones.
17. In order to enable individuals
with disabilities to use an advanced
communications service, all of the
components may have to support
accessibility features and capabilities.
Conversely, if one component does not
offer a particular function, it is often
impossible for another component to
compensate for that omission. For
example, only the hardware component
can support an audio jack or a
connection to an external Braille device,
while only the OS and user interface
layer can enable screen readers. In
addition, it should be noted that while
upper layers cannot make up for the
lack of accessibility features at the lower
layers, they can impede their use. For
example, an application could render
text in such a way that screen readers
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or Braille devices cannot function, e.g.,
to protect content against extraction as
part of digital rights management
functionality. While this environment
complicates the ability to implement
capabilities that support people with
disabilities, we also recognize that these
challenges are inherent in the design of
any mass market application or
hardware device. At the same time, we
recognize that this environment also has
the potential to provide new solutions
for people with disabilities which were
not previously possible.
18. We seek comment on whether the
above description accurately reflects the
basic architecture and components
involved in the delivery of ACS. Below,
we seek comment on how we should
interpret the statute’s directives, in light
of the architecture and components
discussed above.
2. Manufacturers of Equipment Used for
Advanced Communications Services
19. Section 716(a) of the Act provides
that, with respect to equipment
manufactured after the effective date of
applicable regulations established by
the Commission and subject to those
regulations, the accessibility obligations
apply to a ‘‘manufacturer of equipment
used for advanced communications
services, including end user equipment,
network equipment, and software * * *
that such manufacturer offers for sale or
otherwise distributes in interstate
commerce.’’
20. We first seek comment on the
meaning of the term ‘‘manufacturer.’’ We
note that in our rules implementing
section 255 of the Act we define
‘‘manufacturer’’ as ‘‘an entity that makes
or produces a product.’’ In the Section
255 Report and Order, we found that
‘‘[t]his definition puts responsibility on
those who have direct control over the
products produced, and provides a
ready point of contact for consumers
and the Commission in getting answers
to accessibility questions and resolving
complaints.’’ We propose to adopt the
same definition of ‘‘manufacturer’’ in our
rules implementing section 716 and
seek comment on this proposal.
21. We also seek comment on the
meaning of ‘‘end user equipment,’’
‘‘network equipment’’ and ‘‘software,’’ as
those terms are used in section 716(a).
We propose to define ‘‘end user
equipment’’ as including hardware as
described above; ‘‘software’’ includes the
OS, the user interface layer, and
applications, as described above, that
are installed or embedded in the end
user equipment by the manufacturer of
the end user equipment or by the user;
and ‘‘network equipment’’ includes
equipment used for network services, as
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described above. We seek comment on
whether upgrades to the software (OS,
user interfaces, or applications) by
manufacturers are encompassed in these
definitions. We also seek comment on
whether there are any circumstances in
which a manufacturer of end user
equipment would be responsible for the
accessibility of software that is installed
or downloaded by the user. In
particular, we seek comment on
commenters’ assertions that the
limitations on liability in section 2(a) of
the CVAA generally preclude
manufacturers from being liable for
third party applications that are
installed or downloaded by the
consumer.
22. In addition, we seek comment on
the meaning of the phrase ‘‘used for
advanced communications services,’’ in
section 716(a), for the purposes of
determining a manufacturer’s
obligations under this section. As a
general matter, must equipment subject
to section 716(a) be capable of offering
ACS on a standalone basis or merely
support ACS in some way? If the former,
then how should this standard be
applied, for example, to Internetenabled ACS intended to run on
separately distributed general
computing platforms?
23. We also seek comment on the
meaning of ‘‘offers for sale or otherwise
distributes in interstate commerce’’ by
‘‘such manufacturer.’’ Hardware, as
described above, commonly meets this
definition. We seek comment on
whether other components that are used
for advanced communications services
are offered for sale or otherwise
distributed in interstate commerce by
the manufacturer when installed or
embedded by the manufacturer. We
propose to treat generally the act of a
manufacturer’s making software
available for download as a form of
distribution. We seek comment,
however, for purposes of the CVAA, on
what should constitute making software
available for download.
24. We propose to hold manufacturers
of end user equipment responsible for
the accessibility of their products,
including the software, such as the OS,
the user interface layer, and the
applications that they install. We also
propose to find manufacturers of
software used for advanced
communications services that is offered
for sale or otherwise distributed in
interstate commerce by such
manufacturers and that is downloaded
or installed by the user as being covered
by section 716(a).
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3. Providers of Advanced
Communications Services
25. Section 716(b)(1) of the Act
provides that, with respect to service
providers, after the effective date of
applicable regulations established by
the Commission and subject to those
regulations, a ‘‘provider of advanced
communications services shall ensure
that such services offered by such
provider in or affecting interstate
commerce are accessible to and usable
by individuals with disabilities,’’ unless
these requirements are ‘‘not achievable.’’
26. In the Section 255 Report and
Order, the Commission found that
providers of telecommunications
services include resellers and
aggregators. The Commission’s decision
was based on its interpretation of the
statutory definition of
‘‘telecommunications carrier’’ as defined
in section 3(51) of the Act. Specifically,
the Commission noted that ‘‘[section
3(51)] states that a ‘telecommunications
carrier’ means any ‘provider of
telecommunications services’ with the
exception of aggregators, thus indicating
that a ‘provider of telecommunications
services’ would otherwise include
aggregators.’’ While the CVAA does not
provide similar guidance with respect to
the definition of provider of ACS, we
believe that the general principle that
the Commission adopted in the Section
255 Report and Order—that ‘‘Congress
intended to use the term ‘‘provider’’
broadly * * * to include all entities that
make telecommunications services
available’’—has applicability here.
Accordingly, we propose to find
providers of ACS to include all entities
that make ACS available in or affecting
interstate commerce, including resellers
and aggregators. We seek comment on
this proposal.
27. We also seek comment on
additional issues relating to the meaning
of ‘‘providers of advanced
communications services.’’ We propose
to find such providers to include
entities that provide ACS over their own
networks as well as providers of
applications or services accessed (i.e.,
downloaded and run) by users over
other service providers’ networks, as
long as these providers make advanced
communications services available in or
affecting interstate commerce. We also
seek comment on whether there are any
circumstances in which a service
provider would be responsible for the
accessibility of third party services and
applications or whether the liability
provisions in section 2(a) of the CVAA
would generally preclude such a result.
We seek comment on these proposed
approaches and on whether the fact that
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we are required under section
716(e)(1)(C) to ‘‘determine the
obligations under this section of
manufacturers, service providers, and
providers of applications or services
accessed over service provider
networks’’ should have any bearing on
how we interpret the meaning of
providers of ACS. Specifically, we seek
comment on the meaning of ‘‘providers
of applications or services accessed over
service provider networks’’ and how this
term differs from ‘‘providers of advanced
communications services.’’ Finally, we
also seek comment on the meaning of
‘‘in or affecting interstate commerce.’’
Are there any circumstances in which
advanced communications services that
are downloaded or run by the user
would not meet this definition?
4. Advanced Communications Services
28. Section 3(1) of the Act defines
‘‘advanced communications services’’ to
mean (A) Interconnected VoIP service;
(B) non-interconnected VoIP service; (C)
electronic messaging service; and (D)
interoperable video conferencing
service. That provision sets forth
definitions for each of these terms.
a. Interconnected VoIP Service
29. Section 3(25) of the Act, as added
by the CVAA, provides that the term
‘‘interconnected VoIP service’’ has the
meaning given in § 9.3 of the
Commission’s rules, as such section
may be amended. § 9.3 of the
Commission’s rules, in turn, defines
interconnected VoIP as a service that (1)
enables real-time, two-way voice
communications; (2) requires a
broadband connection from the user’s
location; (3) requires Internet protocolcompatible CPE; and (4) permits users
generally to receive calls that originate
on the public switched telephone
network (‘‘PSTN’’) and to terminate calls
to the PSTN. We propose to continue to
define interconnected VoIP in
accordance with § 9.3 of the
Commission’s rules. We seek comment
on this proposal.
30. Section 716(f) of the Act provides
that ‘‘the requirements of this section
shall not apply to any equipment or
services, including interconnected VoIP
service, that are subject to the
requirements of section 255 on the day
before the date of enactment of the
Twenty-First Century Communications
and Video Accessibility Act of 2010.’’ In
the October Public Notice, the Bureaus
sought comment on how to address the
accessibility obligations of equipment
that is used to provide both
telecommunications and advanced
communications services and how to
treat interconnected VoIP. In its
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comments, AT&T states that ‘‘the
Commission should subject multipurpose devices to section 255 to the
extent that the device provides a service
that is already subject to section 255 and
apply section 716 solely to the extent
that the device provides ACS that is not
otherwise subject to section 255.’’ We
seek comment on AT&T’s interpretation
and also seek comment on alternative
interpretations of section 716(f).
b. Non-interconnected VoIP Service
31. Section 3(36) of the Act, as added
by the CVAA, states that the term ‘‘noninterconnected VoIP service’’ means a
service that ‘‘(i) enables real-time voice
communications that originate from or
terminate to the user’s location using
Internet protocol or any successor
protocol; and (ii) requires Internet
protocol compatible customer premises
equipment’’ and that ‘‘does not include
any service that is an interconnected
VoIP service.’’ We propose to define
‘‘non-interconnected VoIP service’’ in
our rules in the same way and seek
comment on this proposal.
32. We propose to treat any offering
that meets the criteria of the statutory
definition set forth above as a ‘‘noninterconnected VoIP service,’’ and note
that the statutory definition of noninterconnected VoIP does not exclude
offerings with a purely incidental VoIP
component. We seek comment on this
proposal. We also note that, as
discussed below, the statute allows the
Commission to waive the requirements
of section 716 for equipment or services
‘‘designed primarily for purposes other
than using advanced communications
service.’’ In addition, as discussed
below, section 716(i) provides that the
requirements of this Section do not
apply to ‘‘customized equipment or
services that are not offered directly to
the public.’’
c. Electronic Messaging Service
33. Section 3(19) of the Act, as added
by the CVAA, states that the term
‘‘electronic messaging service’’ means a
service that provides real-time or near
real-time non-voice messages in text
form between individuals over
communications networks. In
accordance with this definition, we
propose to define this term in the
Commission’s rules as ‘‘a service that
provides real-time or near real-time nonvoice messages in text form between
individuals over communications
networks.’’ Consistent with language of
the Senate and House Reports, we also
propose that electronic messaging
service includes ‘‘more traditional, twoway interactive services such as text
messaging, instant messaging, and
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electronic mail, rather than * * * blog
posts, online publishing, or messages
posted on social networking websites.’’
We seek comment on these proposed
definitions. For reasons similar to those
discussed below in the section on
interoperable video conferencing
services, we believe that Internet
protocol relay (‘‘IP Relay’’) services that
otherwise fit the definition of
‘‘electronic messaging services’’ are
services subject to the requirements of
section 716.
34. We also seek comment on the
assertion of several commenters that the
phrase ‘‘between individuals’’ in the
above definition precludes the
application of the accessibility
requirements to communications in
which no human is involved, such as
automatic software updates or other
device-to-device or machine-to-machine
communications. In addition, we seek
comment on TIA’s assertion that
‘‘services and applications that merely
provide access to an electronic
messaging service, such as a broadband
platform that provides an end user
access to an HTML-based e-mail service,
are not covered.’’
d. Interoperable Video Conferencing
Service
35. Section 3(1) of the Act, as added
by the CVAA, defines the term
‘‘advanced communications services’’ to
include ‘‘interoperable video
conferencing service,’’ which, in turn, is
defined in section 3(27) as ‘‘a service
that provides real-time video
communications, including audio, to
enable users to share information of the
user’s choosing.’’ We note that while
earlier versions of the legislation did not
include the word ‘‘interoperable’’ in the
definition of the term ‘‘advanced
communications services,’’ the
definition of ‘‘interoperable video
conferencing services’’ in the enacted
legislation is identical to the definition
of ‘‘video conferencing services’’ found
in earlier versions. In addition, language
in the Senate Report regarding
‘‘interoperable video conferencing
services’’ is identical to language in the
House Report regarding ‘‘video
conferencing services.’’ Both the Senate
Report and the House Report state, for
example, that ‘‘[t]he inclusion * * * of
these services within the scope of the
requirements of this act is to ensure, in
part, that individuals with disabilities
are able to access and control these
services’’ and that ‘‘such services may,
by themselves, be accessibility
solutions.’’ In light of the above
symmetries between the earlier and later
versions of this definition, as well as the
reports prepared by each chamber of
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Congress, we will first seek comment on
the meaning of ‘‘video conferencing
service’’ and then on the meaning of
‘‘interoperable’’ in this context.
i. Video Conferencing Service
36. We first seek comment on what
services meet the statutory definition of
‘‘providing * * * real-time video
communications, including audio, to
enable users to share information of the
user’s choosing’’ and what end user
equipment, network equipment, and
software are used for these services. We
propose to classify a range of services
and end user equipment under this
statutory definition, including, but not
limited to videophones and software
applications used for conversation
between and among users. Such end
user equipment includes smart phones
and computers with the capability of
using interactive video, text and audio
conferencing applications such as the
Apple iPhone 4.0, Motorola Droid X and
computers and videophones such as
ASUS Skype, Grandstream, Ojo, and
Polycom. Examples of video
conferencing software applications
include, for example, Google Voice &
Video Chat, ooVoo, AOL Instant
Message (‘‘AIM’’) Chat, WebEx, and
Skype. We seek comment on this
proposal.
37. We also seek comment on whether
video relay services (‘‘VRS’’) meet the
above definition. VRS is a form of TRS
under section 225 of the Act that
enables individuals who are deaf or
hard of hearing and who use American
Sign Language to communicate over
distances with voice telephone users
through a remotely located sign
language interpreter called a CA. The
person who is deaf or hard of hearing
makes a VRS call using video
equipment (a television or a computer
with a video camera device) that
connects such individual with the CA
over a broadband connection. The CA
then relays the conversation between
the parties—in sign language with the
VRS user (the ‘‘video leg’’), and by voice
with the telephone user (the ‘‘telephone
leg’’). Voice telephone users can also
initiate VRS calls by simply dialing the
telephone number of the person who
uses sign language. The call is then
automatically connected to a CA, who
then relays the conversation.
38. Commenters disagree about
whether the CVAA covers the video
conferencing service and equipment
used in the provision of VRS. Sorenson
cites to the legislative history and
submits that ‘‘Section 716 was intended
to cover mass market services and
equipment (such as personal computers
and smart phones) that have not been
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designed for use by people with
disabilities, not services and equipment
(such as VRS and point-to-point) that
have been designed specifically to be
accessible to and usable by persons with
disabilities.’’ Consumer Groups disagree,
stating that ‘‘VRS equipment and [video
conferencing] services * * * should be
made accessible in accordance with the
Accessibility Act, if achievable.’’
Sorenson also asserts that the phrase
‘‘including audio’’ in the definition
suggests the exclusion of VRS ‘‘video
conferencing service’’ or equipment.
Consumer Groups reject Sorenson’s
assertion because widely distributed
VRS equipment includes audio
functions that ‘‘benefit users who engage
in voice carryover (‘VCO’) and hearing
carryover (‘HCO’).’’
39. We agree with Consumer Groups
and believe that the ‘‘video leg’’ of a VRS
call meets the statutory definition of
‘‘provid[ing] * * * real-time video
communications, including audio, to
enable users to share information of the
user’s choosing.’’ Just as a voice
telephone user uses telecommunications
services and equipment to communicate
with the VRS CA (the ‘‘telephone leg’’ of
a VRS call), we propose to find that a
VRS consumer uses video conferencing
services and equipment to communicate
with the VRS CA (the ‘‘video leg’’ of a
VRS call). We find nothing in the statute
or the legislative history to suggest that
providers of video conferencing services
and manufacturers of equipment used
for VRS who otherwise are covered
under the CVAA should be excluded
from its requirements simply because
their services are a kind of TRS
provided pursuant to section 225 of the
Act. While VRS equipment and services
are specifically designed for people who
are deaf or hard of hearing and use sign
language, they are not necessarily
designed for those who have additional
disabilities as well (e.g., individuals
who are deaf and have low vision, a
mobility, or dexterity disability). We do
not believe this interpretation will in
any way diminish or change the
obligations of VRS providers that are
contained in part 64 of the
Commission’s rules. We seek further
comment on this issue and on whether
such an interpretation would create any
difficulties or conflicts in our
implementation of the VRS program.
40. We note that consumers who are
deaf or hard of hearing also use video
equipment distributed by VRS providers
for point-to-point calls with other users
of this equipment. We believe that such
point-to-point calling also meets the
CVAA’s statutory definition of
‘‘providing * * * real-time video
communications, including audio, to
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enable users to share information of the
user’s choosing,’’ and seek comment on
this analysis.
41. We also seek further comment on
whether webinars are a covered service.
TIA states that ‘‘a service that enables
users to share information necessarily
implies a two-way service, not a
broadcast-style webinar video.’’ The IT
and Telecom RERCs disagree, however,
asserting that webinar systems should
be subject to Section 716 because these
systems are ‘‘not designed to broadcast
information but rather to provide user
interaction in the form of chat, voting,
and hand-raising, etc.’’
42. Next, we seek comment on
Consumer Groups’ assertion that ‘‘the
scope of the [CVAA] should not be
limited by the type of communication
conveyed by the video conferencing
service (i.e., uni-, bi-, or multidirectional), but by the fact that the
service is capable of providing real-time
communications that enable users to
share information.’’ Consumer Groups
suggest, for example, that the fact that
‘‘video conferencing services may be
used to leave a ‘video mail’ (similar to
a ‘voice mail’) message,’’ does not
preclude the service’s coverage under
the CVAA. Consistent with our seeking
comment on how to treat multi-purpose
devices above we seek comment on
Consumer Groups’ suggestion. We also
seek comment more generally on
whether services that otherwise meet
the definition of ‘‘provid[ing] * * * realtime video communications, including
audio, to enable users to share
information of the user’s choosing’’ but
that also provide non-real-time
functions (such as video mail) are
covered under the CVAA. If so, are the
non-real-time functions or near-realtime functions of such a service (such as
video mail) subject to the requirements
of section 716? If such functions are not
covered, should we, similar to what we
did in the section 255 context, assert our
ancillary jurisdiction to cover video
mail? Specifically, the Commission
employed its ancillary jurisdiction to
extend the scope of section 255 to both
voicemail and interactive menu services
under part 7 of the Commission’s rules
because ‘‘the failure to ensure
accessibility of voicemail and
interactive menu services, and the
related equipment that performs these
functions, would [have] seriously
undermined the accessibility and
usability of telecommunications
services required by sections 255 and
251(a)(2).’’ Similarly, we seek comment
on whether the exclusion of video mail
from our rules governing section 716
would hinder our ability to ensure the
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accessibility and usability of advanced
communications services.
43. TIA also asserts, similar to the
argument that it made with respect to
the scope of VoIP services covered
under the CVAA, that ‘‘products that
offer a video connection that is
incidental to the principal purpose and
nature of the end user offering fall
outside the definition as well,’’ we
believe the same analysis that we
propose to apply to the scope of noninterconnected VoIP should apply here.
We therefore propose to classify any
offering that meets the criteria of the
statutory definition set forth above as a
‘‘video conferencing service’’ and note
that the statutory definition does not
exclude ‘‘products that offer a video
connection that is incidental to the
principal purpose and nature of the end
user offering.’’ Again, we note that this
issue may be relevant to our waiver
authority set forth in section 716(h), or
the exclusion of customized equipment
or services pursuant to section 716(i).
We seek comment on this proposed
classification.
ii. Interoperable
44. We seek further comment on the
meaning of ‘‘interoperable’’ in the term
‘‘interoperable video conferencing
service,’’ again noting the symmetries of
the definition and interpretation of this
term in the various drafts of the CVAA
and the legislative history of this law.
Commenters appear to be divided on the
significance of this term. ITI asserts that
the inclusion of the modifier
‘‘interoperable’’ after earlier versions of
the legislation did not include the word
‘‘strongly suggests that Congress
consciously decided to target only a
subset of all video conferencing
services.’’ TIA urges an interpretation of
the word ‘‘interoperable’’ to mean that a
video conferencing service must operate
‘‘inter-platform, inter-network, and
inter-provider’’ before it is subject to the
accessibility provisions of the CVAA.
Similarly, CEA concludes that ‘‘most
nascent two-way video services and
applications commercially available in
the marketplace have not yet reached
true interoperability and are not covered
by the statute.’’ However, Consumer
Groups believe that ‘‘interoperable’’
should be interpreted to achieve a broad
application of the requirements of the
CVAA. Similarly, the RERC–IT urges
that the inclusion of the word
‘‘interoperable’’ suggests a broad
application of the CVAA so that ‘‘all
video conferencing services are covered
and that they should be made
interoperable.’’ Other commenters
express concerns about the current lack
of interoperability of video conferencing
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services, i.e., that consumers are not
able to make point-to-point calls using
different video conferencing programs.
45. We are concerned that limiting
coverage of this provision to only
currently available video conferencing
services that are ‘‘inter-platform, internetwork, and inter-provider’’ may
undermine the statute’s intent to the
extent the definition results in little or
no video conferencing service or
equipment being ‘‘interoperable.’’ We
note that ‘‘video conferencing service’’ in
the legislative history and ‘‘interoperable
video conferencing service’’ in the
statute have the exact same definitions.
46. We seek comment on how to
define ‘‘interoperable’’ in a manner that
is faithful to both the statutory language
and the broader purposes of the CVAA.
Specifically, we seek comment on how
the Commission should define
interoperable video conferencing
services within the scope of covered
services to ensure that ‘‘such services
may, by themselves, be accessibility
solutions’’ and ‘‘that individuals with
disabilities are able to access and
control these services’’ as Congress
intended. For example, which
characteristics of video conferencing
services and equipment, including
software, should determine
‘‘interoperability’’?
47. The Commission requires VRS
services and equipment to be
‘‘interoperable’’ for the provision of VRS
under section 225 of the Act. The
Commission also requires video
conferencing services and equipment
used for point-to-point calls between
VRS equipment users to be
‘‘interoperable’’ under the authority of
ancillary jurisdiction. These
interoperability requirements pertain
only to VRS providers and equipment
used by registered VRS users for VRS
and point-to-point communications and
do not require interoperability among
VRS and other platforms, networks, or
providers. We seek comment on
whether how we define interoperability
in the context of VRS should have any
bearing on how we define
‘‘interoperable’’ in the term
‘‘interoperable video conferencing
service.’’
5. Customized Equipment or Services
48. Section 716(i) states that the
provisions of this section ‘‘shall not
apply to customized equipment or
services that are not offered directly to
the public, or to such classes of users as
to be effectively available directly to the
public, regardless of the facilities used.’’
While the Senate Report did not discuss
this provision, the House Report
explains that section 716(i) is a ‘‘narrow
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exemption’’ that encompasses
‘‘equipment and services [that] are
customized to the unique specifications
requested by an enterprise customer.’’ It
goes on to state that this provision
‘‘permit[s] manufacturers and service
providers to respond to requests from
businesses that require specialized and
sometimes innovative equipment to
provide their services efficiently’’ and is
‘‘not intended to create an exemption for
equipment and services designed for
and used by members of the general
public.’’
49. Several other commenters urge us
to find that manufacturers and service
providers are subject to Section 716
only to the extent that they are offering
their equipment and services directly to
the public. In contrast, the RERC–IT
urges us to ‘‘carefully limit the exception
for customized equipment and services’’
and to cover equipment and services
that have been customized in ‘‘minor
ways’’ and ‘‘that are made available to
the public indirectly through employers,
schools, or other institutions.’’ The
RERC–IT also urges that we define
‘‘public’’ in this context to ‘‘include
public institutions, such as educational
institutions and government agencies.’’
50. We believe that the guidance
offered by the House Report evinces
Congress’s intent that section 716(i) be
narrow in scope and applicable only to
customized equipment and services
offered to business or other enterprise
customers, rather than to equipment and
services ‘‘used by members of the
general public.’’ We seek comment on
this analysis, as well as on the extent to
which the equipment and services used
by private institutions but made
available to the public, such as
communications equipment and
services used by libraries and schools,
should be covered by the CVAA. More
specifically, we seek comment on what
additional guidance by the Commission
is needed to define equipment and
services that are ‘‘used by members of
the general public.’’ Finally, we seek
comment on the extent to which section
716 covers products and services that
are offered to the general public, but
which have been customized in minor
ways to meet the needs of private
entities.
51. Consistent with Motorola’s
assertions, we propose to find section
716’s definition of advanced
communications services not to extend
to public safety communications
networks and devices and find that
these networks and devices are
‘‘equipment and services that are not
offered directly to the public.’’ We agree
that the Commission’s recent proposal
not to apply its hearing aid
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compatibility requirements to public
safety equipment is instructive here. We
note, however, that employers still have
obligations under the ADA, and agree
with CSD that ‘‘to the extent possible,
public safety systems should be
designed to accommodate the needs of
deaf [and] hard-of-hearing employees
and employees with other disabilities.’’
We seek comment on this analysis.
6. Waivers for Services or Equipment
Designed for Purposes Other Than
Using ACS
52. Section 716(h)(1) of the Act states:
The Commission shall have the
authority, on its own motion or in
response to a petition by a manufacturer
or provider of [ACS] or any interested
party, to waive the requirements of
[section 716] for any feature or function
of equipment used to provide or access
[ACS], or for any class of such
equipment, for any provider of [ACS], or
for any class of such services that —(A)
is capable of accessing an [ACS]; and (B)
is designed for multiple purposes but is
designed primarily for purposes other
than using [ACS]. We note that, in
making waiver decisions, the
Commission generally considers
whether special circumstances exist that
warrant deviation from the general rule,
and whether the waiver will serve the
public interest. In the October public
notice, the Bureaus asked what factors
would be relevant to determining
whether a product or service is eligible
for a waiver and whether there are any
specific classes of products or services
that warrant the establishment of a
categorical or blanket waiver.
53. Both the Senate and House
Reports state that section 716(h)
‘‘provides the Commission with the
flexibility to waive the accessibility
requirements for any feature or function
of a device that is capable of accessing
advanced communications services but
is, in the judgment of the Commission,
designed primarily for purposes other
than accessing advanced
communications.’’ Consistent with the
statutory language and legislative
history, we propose to focus our inquiry
on determining whether the offering is
designed primarily for purposes other
than using ACS.
54. In making our waiver assessment,
we agree with commenters that the
‘‘core’’ function of an offering is an issue
relevant to our analysis, we also agree
with the IT and Telecom RERCs’s
suggestion that the ‘‘primary feature of a
multi-feature device or service [may]
vary from person to person.’’
Furthermore, we do not believe the fact
that a ‘‘core’’ function of a device is to
play games to be dispositive of the issue
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whether such device is entitled to
waiver under section 716(h). As the IT
and Telecom RERCs note, ‘‘[g]aming is
used for education, rehabilitation, and
social interaction [and] * * * should
not be exempted simply because the
basic feature is a game.’’ We seek
comment on this analysis. We also seek
comment on AFB’s contentions that
‘‘how [a product] is marketed’’ and
‘‘[how] most people think of the device’’
should not be relevant to our analysis;
rather, ‘‘[t]he issue is whether the
advanced communications features and
functions can be operated apart from the
device’s [primary] functions.’’
55. ESA also suggests that why
consumers access the gaming products
is an important consideration:
‘‘Consumers do not play an online game,
[for example], as a means of accessing
chat—a consumer in search of a general
purpose messaging service will find
simpler, more direct alternatives than
navigating through the various features
of a gaming device or online game
service.’’ We seek comment on this
assertion and on whether how
consumers actually use the
communications component of a multipurpose device or service is relevant to
our assessment of the primary purpose
for which a device or service was
designed. In addition, we seek comment
on ESA’s proposal that we consider as
part of our waiver determination
whether the offering is designed for a
‘‘specific class of users who are using
the ACS features in support of another
task.’’
56. We also seek comment on the
process that we should adopt for
determining whether to waive the
requirements of section 716 and
specifically on the extent to which we
need to adopt any procedures to ensure
that such process is efficient and
effective. Alternatively, we seek
comment on whether we should handle
waivers as we have in the normal course
pursuant to § 1.3 of the Commission’s
rules. We agree with commenters who
state that we should ‘‘incorporate
protections for confidential information’’
and propose that parties seeking waivers
be able to request confidential treatment
of information pursuant to § 0.459 of the
Commission’s rules. At the same time,
we agree with AAPD that, to the extent
possible, the process should be
‘‘transparent and public,’’ and propose to
seek comment on any waiver petition
that we receive pursuant to section
716(h). We seek comment on these
proposals.
57. We also recognize the need, after
appropriate consideration, for making
waiver determinations in an
‘‘expeditious manner,’’ although we
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propose not to ‘‘incorporate an
automatic grant date for waiver
requests’’ as TIA urges. We note that TIA
requests that ‘‘if the Commission fails to
timely act on a good faith waiver
request, the company in question
[should] be able to initiate the product
or service without penalty, and
incorporate accessibility features in a
reasonable time frame prospectively.’’
Given that such a ‘‘deemed granted’’
provision is not contemplated by the
statute, we do not intend to propose the
framework outlined by TIA. We seek
comment on this analysis.
58. In addition, in light of the fact
that, as the NFB observes, ‘‘[t]echnology
is ever changing and the ‘primary
purpose’ of multi-purpose products is
always evolving,’’ we seek comment on
AAPD’s assertion that ‘‘there should be
no permanent waivers.’’ Should waivers
be temporary, and, if so, what should
the duration of the waivers be? If we
decide that waivers should only be
temporary, should we establish a
process for renewing waivers, and, if so,
should the factors we consider for
renewal vary from the factors we
consider for the original waiver grant?
59. We also seek comment on whether
we should consider waivers for a ‘‘class’’
of services or equipment under this
section and what specific showing is
needed to justify such waivers. Several
commenters suggest that we should
grant blanket waivers in order to
support innovation and competition.
For example, Microsoft states that
‘‘[g]ranting prospective categorical
waivers is essential to encourage
manufacturers and service providers to
build communication features into
services and equipment devices that do
not have as their core purpose advanced
communications * * * [f]ostering this
innovation will enrich the
communications choices and solutions
available to all consumers, including
those with disabilities.’’ In contrast,
many consumer commenters suggest
that blanket waivers are never
appropriate, given rapid technological
advancement and the belief that ‘‘much
accessibility and usability will be
accomplished through software and
related changes.’’
60. We seek further comment on the
specific factors that we should consider
in determining whether a particular
‘‘class’’ of services or equipment should
be granted a waiver. How can we
determine what services or equipment
are similarly situated enough to be
designated a ‘‘class’’? Is it possible to
structure a blanket waiver in such a way
as to address consumers’ concerns that
any such waiver could quickly become
outdated? Are there specific classes of
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services or equipment that we should
consider waiving in our final rules on
section 716? If we do decide to grant
waivers for an entire class of services or
equipment, should such waivers be
permanent or temporary? As discussed
above (for individual waivers), should
we establish a renewal and/or
revocation process for categorical
waivers?
7. Exemptions for Small Entities
61. Section 716(h)(2) states that ‘‘the
Commission may exempt small entities
from the requirements of this section.’’
While the Senate Report did not discuss
this provision, the House Report notes
that under this section, the Commission
may ‘‘waive the accessibility
requirements for certain small
businesses and entrepreneurial
organizations’’ because they ‘‘may not
have the legal, financial, or technical
capability to incorporate accessibility
features.’’ Otherwise, the Report notes,
the ‘‘application of these requirements
in this limited case may slow the pace
of technological innovation.’’ It also
states that ‘‘the Commission is best
suited to evaluate and determine which
entities may qualify for this exemption,’’
and that it expects we will consult with
the Small Business Administration
(‘‘SBA’’) when defining the small entities
to be exempted.
62. NTCA asks the Commission to
exercise its authority under section
716(h)(2) to exempt small businesses
from section 716 and to define ‘‘small
businesses,’’ as such term is defined in
the Regulatory Flexibility Act, thereby
enabling small, rural local exchange
carriers (‘‘RLECs’’) and their affiliates to
deploy and offer ACS ‘‘without facing
outsized or unachievable regulatory
burdens.’’ Similarly, Blooston Rural
Carriers request that small RLECs, RLEC
affiliates, and other similarly situated
small entities be exempted under
section 716(h)(2) from both section 716,
and the related enforcement and
recordkeeping requirements of section
717. In the alternative, they request that
the Commission adopt ‘‘streamlined
procedures and simplified criteria’’ that
make ‘‘appropriate waivers reasonably
available to qualifying entities in a
timely, predictable, and economically
reasonable manner.’’
63. Consumer Groups, however, urge
that ‘‘[i]ndividuals with disabilities
should not be denied accessible
advanced communications equipment
and services simply because they
happen to live in underserved or rural
areas,’’ and assert that ‘‘RLECs can
ensure their own compliance with the
[CVAA] through contracts with larger
providers and mass market vendors
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* * * who must also comply with the
[CVAA].’’ ACB opposes small entity
waivers ‘‘without such entities having
done due diligence on whether or not
product accessibility is
‘achievable’* * * [contending] a caseby-case approach to granting waivers
would better serve the needs of
consumers.’’ Moreover, ACB
recommends that, if the Commission
grants categorical waivers for small
entities, any such waivers only be
granted for a year or less, subject to
renewal at the Commission’s discretion.
Similarly, AAPD urges the FCC
Commission to utilize caution when
reviewing circumstances that would
allow small entities an exemption from
these requirements. AAPD does not
favor ‘‘permanent exemptions or
waivers.’’
64. In considering the proper scope of
possible exemptions from the provisions
of section 716 for small entities, we note
that other provisions of that section also
recognize the need to consider the
circumstances of such entities in
applying the accessibility requirements.
As discussed in section III.B.1 infra,
section 716 provides that service
providers and manufacturers must meet
the accessibility requirements of section
716 ‘‘unless [those requirements] are not
achievable.’’ Section 716(g) defines
‘‘achievable’’ as ‘‘with reasonable effort
or expense,’’ and requires the
Commission to consider four factors in
determining whether meeting a
requirement of section 716 is
‘‘achievable.’’ Two of those four factors
necessarily incorporate consideration of
the size and capabilities of an entity:
‘‘[t]he technical and economic impact on
the operation of the manufacturer or
provider and on the operation of the
specific equipment or service in
question, including on the development
and deployment of new
communications technologies;’’ and
‘‘[t]he type of operations of the
manufacturer or provider.’’
65. The discretionary authority to
exempt one or more groups of small
entities in section 716(h)(2)
supplements the protections that are
built into the section 716(g)
achievability analysis with an
additional tool to ensure that our rules
do not unduly burden such entities. We
acknowledge that certain small entities
may lack the legal, financial, or
technical capability to incorporate the
accessibility features required by the
CVAA, and that in certain instances this
may warrant an exemption from our
accessibility requirements for certain
small entities that provide ACS as well
as some of those small entities that
manufacture equipment used for ACS.
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We agree with consumers that any such
exemptions should be carefully tailored
to ensure that individuals with
disabilities are not denied access to
advanced communications equipment
and services in rural and other
underserved areas.
66. In light of these competing
concerns, we seek comment on whether
we should exercise our exemption
authority, and if so, how we should
structure the exemption. For example,
should we base the exemption on the
number of employees or the annual
revenues of the entity or a combination
of the two? Are there other criteria that
we should consider? We also seek input
on the impact of any exemption that
commenters urge us to make. In
particular, we request information on
the percentage of manufacturers and
service providers that would be
exempted from our section 716
requirements for any specific criteria
proposed. We also seek comment on the
percentage of equipment (including
software) and services in the ACS
marketplace that would be exempted
from the requirements of section 716 if
we exempted entities based these
proposed criteria. In addition, we seek
comment on how use of any
recommended criteria would affect the
availability of ACS and equipment used
for ACS, especially in rural and
underserved areas. Finally, if we adopt
criteria to exempt small entities, should
we consider limiting the time period of
any exemption that may be granted
under these criteria? We also propose to
review periodically any basis that we
adopt for granting exemptions to small
entities to ensure that they reflect the
current state of the industry.
B. Nature of Statutory Requirements
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1. Achievable Standard
a. General Approach
67. Service providers and
manufacturers must meet the
accessibility requirements of section 716
‘‘unless [those requirements] are not
achievable.’’ Section 716(g) of the Act
defines the term ‘‘achievable’’ to mean
‘‘with reasonable effort or expense, as
determined by the Commission.’’ As
noted above, section 716 requires a
higher standard of achievement than
section 255. Under section 255, covered
entities must ensure the accessibility of
their products if it is ‘‘readily
achievable’’ to do so, which the statute
defines by cross reference to the ADA to
mean ‘‘easily accomplishable and able to
be carried out without much difficulty
or expense.’’
68. Specifically, section 716(g)
requires the Commission to consider the
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following factors in making
determinations about what ‘‘constitutes
reasonable effort or expense’’: (1) The
nature and cost of the steps needed to
meet the requirements of this [s]ection
with respect to the specific equipment
or service in question; (2) the technical
and economic impact on the operation
of the manufacturer or provider and on
the operation of the specific equipment
or service in question, including on the
development and deployment of new
communications technologies; (3) the
type of operations of the manufacturer
or provider; and (4) the extent to which
the service provider or manufacturer in
question offers accessible services or
equipment containing varying degrees
of functionality and features, and
offered at differing price points.
69. We seek comment on each of these
factors. At the outset, we note that the
Senate and House Reports state that we
should ‘‘weigh each factor equally when
making an achievability determination.’’
The House Report also states that in
implementing section 716, the
Commission should ‘‘afford
manufacturers and service providers as
much flexibility as possible, so long as
each does everything that is achievable
in accordance with the achievability
factors.’’ Consistent with this legislative
history, we generally agree with AT&T
that an assessment of what is achievable
should be ‘‘fact-based, flexible, and
applied on a case-by-case basis,’’ but
also agree with NFB that flexibility
should not be so paramount that
‘‘accessibility is never achieved.’’ The
House Report also states that ‘‘the
Commission [should] interpret the
accessibility requirements in this
provision the same way as it did for
[s]ection 255, such that if the inclusion
of a feature in a product or service
results in a fundamental alteration of
that service that it is per se not
achievable to include that function.’’
Accordingly, we agree with commenters
who urge us to interpret the
achievability requirements consistent
with this directive. We seek comment
on this analysis.
70. We also seek comment on whether
or to what extent we have the discretion
to weigh other factors not specified in
the statute in making an achievability
determination. ITI urges us to do so, and
specifically asks us to consider ‘‘how the
lack of economies of scale and scope
can sometimes hinder the development
and deployment of accessibility
solutions.’’ We note that Congress
specifically set forth in section 716 the
factors that we must consider in
determining whether accessibility is
achievable, and directed us to weigh
these factors equally. In light of the
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13809
statute and this legislative history, we
propose to only consider the factors
enumerated in the statute in making our
achievability determinations. We would
note, however, that we propose to
construe the factors broadly and weigh
any relevant considerations in
determining their meaning. We believe,
for example, that the ‘‘lack of economies
of scale and scope’’ could be a relevant
consideration in determining the
meaning of the second factor, ‘‘the
technical and economic impact on the
operation of the manufacturer or
provider and on the operation of the
specific equipment or service in
question, including on the development
and deployment of new
communications technologies.’’ We seek
comment on this analysis.
b. Specific Factors
(i) Nature and Cost of Steps Needed
With Respect to Specific Equipment or
Service
71. Section 716(g)(1) of the Act states
that in determining whether the
statutory requirements are achievable,
the Commission must consider ‘‘[t]he
nature and cost of the steps needed to
meet the requirements of [716(g)] with
respect to the specific equipment or
service in question.’’ The Senate Report
requires the Commission to consider
‘‘the nature and cost of the steps needed
to make the specific equipment or
service in question accessible’’ and
states that ‘‘[t]he Committee intends for
the Commission to consider how such
steps, if required, would impact the
specific equipment or service in
question.’’ The House Report reiterates
the need for the Commission to focus on
the ‘‘specific product or service in
question’’ when conducting this
analysis. We believe that it is
appropriate for us to consider whether
accessibility has been achieved by
competing products, but agree with T–
Mobile that, in doing so, we must also
consider the unique circumstances of
each covered entity. We seek comments
on this analysis and also seek comment
on whether we should define this
standard with more specificity in order
to make sure that our standards are fully
enforceable. We further request input on
ACB’s suggestion that we consider the
totality of the steps that a company
needs to take in our achievability
analysis, as well as the need to compare
the cost of making a product accessible
with the organization’s entire budget.
(ii) Technical and Economic Impact on
the Operation
72. The second factor in determining
whether compliance with section 716 is
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‘‘achievable’’ requires the Commission to
consider the ‘‘technical and economic
impact of making a product or service
accessible on the operations of the
manufacturer or provider, and on the
operation of the specific equipment or
service in question, including on the
development and deployment of new
communications technologies.’’ We seek
comment on how we should assess this
factor and how our analysis should take
into account the development and
deployment of new communications
technologies.
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(iii) Type of Operations
73. The third factor in determining
whether compliance with section 716 is
‘‘achievable’’ requires the Commission to
consider ‘‘[t]he type of operations of the
manufacturer or provider.’’ The Senate
and House Reports state that this factor
permits ‘‘the Commission to consider
whether the entity offering the product
or service has a history of offering
advanced communications services or
equipment or whether the entity has just
begun to do so.’’ We seek comment on
the extent to which we should consider
an entity’s status as a new entrant in the
ACS market in conducting our
achievability analysis. How should a
manufacturer or service provider’s
recent entry into this market affect our
analysis if such entity has significant
resources or otherwise appears capable
of achieving accessibility? What other
criteria should we use in assessing this
factor as part of our achievability
analysis?
(iv) Extent to Which Offering Has Varied
Functions, Features, and Prices
74. The fourth factor in determining
whether compliance with section 716 is
‘‘achievable’’ requires the Commission to
consider ‘‘[t]he extent to which the
service provider or manufacturer in
question offers accessible services or
equipment containing varying degrees
of functionality and features, and
offered at differing price points.’’ The
Senate and House Reports state that ‘‘the
Commission [should] interpret this
factor in a similar manner to the way
that it has implemented its hearing aid
compatibility rules.’’ The Commission’s
rules governing hearing aid
compatibility (‘‘HAC’’) obligations for
wireless devices require manufacturers
and service providers to ensure that a
range of phones comply with the HAC
standards. Specifically, those rules
direct such companies to ensure that
hearing aid users are able to select ‘‘from
a variety of compliant handset models
with varying features and prices.’’
75. Several industry commenters read
Congress’s directive to incorporate this
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criteria into the achievability analysis,
in conjunction with the legislative
history and Section 716(j), as an outright
rejection of the finding in the Section
255 Report and Order to require covered
entities to consider the accessibility of
every product. On the other hand, the
RERC–IT states that ‘‘if every function of
a particular device can achievably be
made accessible to every disability,
every function should be made
accessible.’’ We question whether any of
these proposed interpretations
appropriately take into account the
more balanced approach contemplated
by Congress, which gives equal weight
to each of the four achievability factors
and applies them on a flexible, case-bycase basis. We do, however, generally
agree with TIA that this factor should be
interpreted to ‘‘give individuals with
disabilities meaningful choices in
accessible products, and to reward those
companies who provide such choices.’’
While section 716’s flexible approach is
not amenable to the fixed number or
percentage approach the Commission
has employed in the HAC context,
section 716(g)(4) seems to require that
where a company has made a good faith
effort to incorporate accessibility
features in different products across
multiple product lines, this should
count favorably toward a determination
that the company is in compliance with
section 716 for the product in question.
Where companies offer a range of
accessible products that perform
different functions at varied price
points, consumers with disabilities will
have a range of devices from which to
make their purchases. In those
instances, so long as other criteria under
the achievability analysis are met, a
company charged with having an
inaccessible product might not have to
make that specific product accessible.
This approach would appropriately
reward companies that make substantial
investments in accessible products,
while allowing flexibility to account for
marketplace realities.
76. Accordingly, we seek comment on
whether covered entities generally
should not have to consider what is
achievable with respect to every
product, if the entity offers consumers
with the full range of disabilities
meaningful choices through a range of
accessible products with varying
degrees of functionality and features, at
differing price points. At the same time,
we also seek comment on whether there
are some accessibility features that are
so important or easy to include (like a
‘‘nib’’ on the 5 key) that they should be
deployed on every product, unless it is
not achievable to do so. If so, we seek
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comment on whether we should
identify in our rules some of these
specific accessibility features that are
currently available, to provide clarity on
what accessibility features should be
universally deployed, if achievable. We
further express our general belief that
section 716(j), does not preclude our
identifying ‘‘easy’’ accessibility features
that must be included on every product,
if achievable. While the Senate Report
did not address this specific provision,
our belief is confirmed by the House
Report, which states that the
Commission’s approach to section 255
is consistent with section 716(j). Finally,
we seek comment on whether we
should define with more specificity the
meaning of ‘‘varying degrees of
functionality and features’’ and
‘‘differing price points.’’ In particular,
we seek comment on ACB’s assertion
that ‘‘[i]t is essential that manufacturers
and service providers make available a
range of devices that fit various price
ranges along with corresponding
accessible features * * * this may be
accomplished by dividing devices into
classes and making certain that each
class has at least one option that is fully
accessible.’’
2. Industry Flexibility
77. Sections 716(a)(2) and (b)(2) of the
Act provide manufacturers and service
providers, respectively, flexibility on
how to ensure compliance with the
accessibility requirements of the CVAA.
Specifically, a manufacturer or service
provider may comply with these
requirements either by building
accessibility features into the equipment
or service or ‘‘by relying on third party
applications, peripheral devices,
software, hardware, or [CPE] that is
available to consumers at nominal cost
and that can be accessed by people with
disabilities.’’ While the Senate Report
did not discuss these provisions, the
House Report makes clear that the
choice between these two options ‘‘rests
solely with the provider or
manufacturer.’’ We believe that the
statutory language and legislative
history preclude us from preferring
built-in accessibility over third party
accessibility solutions, as some
consumer commenters urge us to do. We
acknowledge the integral role that
universal design has played in ensuring
that mainstream products and services
are accessible to people with
disabilities, and we believe that
universal design will continue to play
an important role in providing
accessibility to people with disabilities.
We believe, however, that the industry
flexibility provisions of the CVAA
reflect the fact that there are new ways
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to meet the needs of people with
disabilities that were not envisioned
when Congress passed section 255,
which relied primarily on universal
design principles. With new and
innovative technologies, in some cases,
personalized services and products may
now be able to more efficiently and
effectively meet individual needs than
products built to perform in the same
way for every person. Sometimes called
‘‘auto-personalization,’’ where available,
this allows devices to adapt to
individual needs based on the user’s
preferences, according to the device’s
capabilities. In a growing and
increasingly mobile computing
environment, for example, consumers
may be able to set their preferences so
that the interfaces on a device or the
content produced by that device
automatically become accessible for that
individual’s disability needs.
78. We do, however, seek comment on
what actions we should take to ensure
that third party accessibility solutions
meet the needs of consumers in a
manner comparable to solutions that are
built into the equipment. First, we seek
comment on the meaning of the
requirement that the third party
accessibility solutions ‘‘must be
available to the consumer at nominal
cost.’’ Some commenters assert that
‘‘nominal cost’’ cannot be a static
definition or constitute a set amount or
percentage of total cost, but rather
should be determined on a case-by-case
basis. In contrast, the RERC–IT, noting
that people with disabilities are ‘‘poor at
alarming rates,’’ urges the Commission
to limit ‘‘nominal cost’’ at to one percent
(1%) of the total cost of the device or
service, or the total cost of the device
plus service, as applicable. AFB notes
further that ongoing costs to keep third
party software and hardware up to date
and in good working order should be
included, such that the total cost to the
consumer cannot be more than nominal.
While Congress did not prescribe a
percentage or amount, it did intend that
any fee for third-party software or
hardware accessibility solutions be
‘‘small enough so as to generally not be
a factor in the consumer’s decision to
acquire a product or service that the
consumer otherwise desires.’’ We
propose to adopt this definition of
‘‘nominal cost’’ and seek comment on
this proposed definition. We are
concerned, however, that this
definition, by itself, might not ensure
that the cost of accessibility for the
consumer is truly nominal, and we seek
comment on whether we need to
provide further guidance on the issue.
79. We believe that manufacturers and
service providers can rely on a range of
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third party solutions, subject to the
requirements that we discuss further
below, including the use of third party
applications, peripheral devices,
software, hardware, and CPE. We
propose to adopt the following
definitions of these potential third party
accessibility solutions:
13811
order to meet the requirements of the
statute.
3. Accessible to and Usable by
81. Under sections 716(a) and (b) of
the Act, covered service providers and
equipment manufacturers must make
their products ‘‘accessible to and usable
by’’ people with disabilities, unless it is
(a) ‘‘Applications’’ means ‘‘computer
not achievable. In this section, we seek
software designed to perform or to help the
comment on the extent to which we
user perform a specific task or specific tasks,
should continue to define ‘‘accessible to
such as communicating by voice, electronic
and usable by’’ as we have for our
text messaging, or video conferencing’’;
(b) ‘‘Peripheral devices’’ means ‘‘devices
implementation of section 255, which
employed in connection with equipment
requires telecommunications service
covered by this [proceeding] to translate,
providers and equipment manufacturers
enhance, or otherwise transfer advanced
to make their products ‘‘accessible to
communications services into a form
and usable by’’ people with disabilities,
accessible to individuals with disabilities’’;
if readily achievable.
(c) ‘‘Software’’ means ‘‘computer programs,
82. In the Section 255 Report and
procedures, rules, and related data and
Order, the Commission adopted a
documentation that direct the use and
operation of a computer or a related device
definition of ‘‘accessible’’ in § 6.3(a) of
and instruct it to perform a given task or
the Commission’s rules which
function’’;
incorporated the functional definition of
(d) ‘‘Hardware’’ means ‘‘a tangible
this term from the Access Board
communications device, equipment, or
guidelines and includes various input,
physical component of communications
control, and mechanical functions,
technology, including peripheral devices,
output, display, and control functions.
such as a smart phone, a laptop computer, a
The Section 255 Report and Order also
desk top computer, a screen, a keyboard, a
speaker, or an amplifier’’; and
adopted a definition of ‘‘usable’’ in § 6.3
(e) ‘‘Customer premises equipment’’ means
that incorporated the Access Board’s
‘‘equipment employed on the premises of a
definition of this term. Specifically,
person (other than a carrier) to originate,
§ 6.3(l) provides that usable ‘‘mean[s]
route, or terminate telecommunications.’’
that individuals with disabilities have
We seek comment on these
access to the full functionality and
definitions and whether they are
documentation for the product,
sufficiently inclusive of third party
including instructions, product
solutions available to manufacturers and information (including accessible
service providers.
feature information), documentation,
80. Second, we seek comment on the
and technical support functionally
requirement that individuals with
equivalent to that provided to
disabilities must be able to ‘‘access’’ the
individuals without disabilities.’’
third-party solutions. Specifically, we
83. We seek comment on whether we
seek comment on ACB’s assertions that
should adopt these definitions for
the third party solutions (i) ‘‘cannot be
purposes of section 716 or whether we
an after-market sale for which the user
should take this opportunity to make
must perform additional steps to
changes to these definitions that would
obtain;’’ (ii) ‘‘must be fully operable by
apply to both our section 255 of the
a person with a disability without
Communications Act and our section
716 of the CVAA based on the Access
having to turn to people without
Board Draft Guidelines that were
disabilities in order to perform setup or
released for public comment in March
maintenance;’’ and (iii) ‘‘must be fully
documented and supported.’’ We believe 2010. While we note that there is a great
deal of overlap between section 255’s
that for covered entities to meet the
definition of ‘‘accessible’’ and the Access
‘‘access’’ requirement of this provision,
Board’s proposed updated functional
they must ensure that the third party
criteria for ICT, there are some
solution not be more burdensome to a
differences. To the extent that there are
consumer than a built-in solution. In
differences between these definitions
that vein, should a service provider or
and criteria, should we work to
manufacturer relying on third party
solutions be responsible for finding and reconcile those differences? For
example, the rules implementing
installing the solution, and supporting
the solution over the life of the product? section 255 of the Act address cognitive
disabilities whereas the draft ICT
We seek comment on this analysis, on
guidelines do not; and the draft ICT
what a company must do to achieve
guidelines address photosensitive
such parity with built-in solutions, and
seizures, whereas the rules
on whether it is necessary to require
implementing section 255 of the Act do
that covered entities bundle the third
not. In addition, we note that the Access
party solutions with its products in
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Board Draft Guidelines on ‘‘usability’’
are broader and more detailed than the
rules implementing section 255 of the
Act. The Access Board Draft Guidelines,
for example, cover training and alternate
methods of communication.
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4. Disability
84. Section 3(18) of the Act states that
the term ‘‘disability’’ has the meaning
given such term under section 3 of the
ADA. The ADA defines ‘‘disability’’ as
with respect to an individual: ‘‘(A) A
physical or mental impairment that
substantially limits one or more major
life activities of such individual; (B) a
record of such an impairment; or (C)
being regarded as having such an
impairment * * *.’’ Our current rules
incorporate this definition of disability,
and we propose to use that definition in
our section 716 rules.
5. Compatibility
85. Under section 716(c) of the Act,
whenever accessibility is not achievable
either by building in access features or
using third party accessibility solutions
as set forth in sections 716(a) and (b), a
manufacturer or service provider must
‘‘ensure that its equipment or service is
compatible with existing peripheral
devices or specialized customer
premises equipment commonly used by
individuals with disabilities to achieve
access,’’ unless that is not achievable.
Section 255 of the Act contains a similar
compatibility requirement for
telecommunications service providers
and manufacturers if it is readily
achievable to do so, in cases where
built-in accessibility is not readily
achievable.
86. Our rules implementing section
255 of the Act define peripheral devices
to mean ‘‘devices employed in
connection with equipment covered by
this part to translate, enhance or
otherwise transform
telecommunications into a form
accessible to individuals with
disabilities.’’ We stated in the Section
255 Report and Order that these might
include ‘‘audio amplifiers, ring signal
lights, some TTYs, refreshable Braille
translators, [and] text-to-speech
synthesizers.’’ Our rules implementing
section 255 of the Act define specialized
CPE as customer premises equipment
that is commonly used by individuals
with disabilities to achieve access.
87. For purposes of section 716, we
propose to define peripheral devices to
mean ‘‘devices employed in connection
with equipment, including software,
covered under this part to translate,
enhance, or otherwise transform
advanced communications services into
a form accessible to individuals with
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disabilities.’’ This definition is based on
our section 255 definition, with some
refinements to reflect the statutory
language in section 716. We also
propose to define specialized CPE, as
we do in our rules implementing section
255 of the Act, as ‘‘customer premises
equipment which is commonly used by
individuals with disabilities to achieve
access.’’ We agree with the vast majority
of commenters that peripheral devices
can include mainstream devices and
software, as long as they can be used to
‘‘translate, enhance, or otherwise
transform advanced communications
services into a form accessible to
individuals with disabilities’’ and the
devices and software are ‘‘commonly
used by individuals with disabilities to
achieve access.’’ As we found in the
Section 255 Report and Order, we do
not believe that it would be feasible for
the Commission to maintain a list of
peripheral devices and specialized CPE
commonly used by individuals with
disabilities, given how quickly
technology is evolving. For the same
reason, we also believe that covered
entities do not have a duty to maintain
a list of all peripheral devices and
specialized CPE used by people with
disabilities. We do believe, however,
that covered entities have an ongoing
duty to consider how to make their
products compatible with the software
and hardware components and devices
that people with disabilities use to
achieve access and to include this
information in their records required
under section 717(a)(5). We seek
comment on these proposed definitions.
88. We also seek additional comment
on what should be required to ensure
compatibility in the context of advanced
communications services. Under our
rules implementing section 255 of the
Act, we use four criteria for determining
compatibility: (i) External access to all
information and control mechanisms;
(ii) existence of a connection point for
external audio processing devices; (iii)
TTY connectability; and (iv) TTY signal
compatibility. We seek comment on
whether the four criteria listed above
remain relevant in the context of
advanced communications services. For
example, we understand that a sizeable
majority of consumers who previously
relied on TTYs for communication are
transitioning to more mainstream forms
of text and video communications. If we
want to encourage an efficient
transition, should we phase out the
third and fourth criteria as compatibility
components in our section 716 rules?
Should we phase out the criteria from
our rules implementing section 255 of
the Act as well? If so, should we ensure
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that these requirements are phased out
only after alternative forms of
communication, such as real-time text,
are in place?
89. While the Access Board Draft
Guidelines address compatibility
primarily with content providers in
mind, they may still be helpful in
defining what ‘‘compatible’’ should
mean as we update our accessibility
rules. The Access Board Draft
Guidelines define compatibility to be
the ‘‘interaction between assistive
technology, other applications, content,
and the platform,’’ as well as the
preservation of accessibility in alternate
formats. We seek further comment on
whether and how we should use the
Access Board Draft Guidelines to help
us define compatibility for purposes of
section 716.
90. We also seek comment on whether
we should adopt additional criteria for
determining compatibility under section
716 and section 255. The Access Board
Draft Guidelines note that accessibility
programming interfaces (‘‘APIs’’) enable
interoperability with assistive
technology. Code Factory explains, for
example, that it is better able to develop
a screen reader application if
‘‘manufacturers and operating system
developers develop an Accessibility
API, which is essentially a layer
between the device user interface and
the screen reader that can be used to
pull information that must be spoken to
the user.’’ The Access Board Draft
Guidelines direct platforms,
applications, and interactive content to
comply with World Wide Web
Consortium’s Web Content Accessibility
Guidelines (WCAG) 2.0 Level AA
Success Criteria and Conformance
Requirements or to comply with specific
accessibility criteria in Chapter 4 of the
Access Board Draft Guidelines. Are
there aspects of the WCAG guidelines or
Access Board criteria that we should
incorporate into our definition of
compatibility? We also seek comment
on the status of industry development of
APIs and whether incorporating criteria
related to APIs into our definition of
compatibility could promote the
development of APIs.
6. Network Features
91. Under section 716(d) of the Act,
‘‘[e]ach provider of advanced
communications services has the duty
not to install network features,
functions, or capabilities that impede
accessibility or usability.’’ In the October
public notice, the Bureaus sought
comment on how this provision
compares to a similar provision in
section 251(a)(2) of the Act (relating to
section 255) and whether the
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requirement has a different meaning in
the context of advanced
communications services networks.
92. We agree with commenters who
generally believe that this duty not to
impede accessibility is comparable to
the duty set forth in section 251(a)(2) of
the Act. We propose that our rules
should include the requirements set
forth in section 716(d), just as our rules
implementing section 255 of the Act
reflect the language in section 251(a)(2).
We also agree with Verizon and AAPD,
who stress that section 716(d) applies to
a much broader range of providers, and
seek comment on how we can best reach
out to newly covered entities and ensure
that they are aware of their new
responsibilities.
93. We note that both the Senate and
House Reports state that the obligations
imposed by section 716(d) ‘‘apply where
the accessibility or usability of
advanced communications services
were incorporated in accordance with
recognized industry standards.’’ CTIA
states that until the Commission
identifies and requires the use of
industry-recognized standards, it should
‘‘refrain from enforcing these obligations
on network providers.’’ We seek
comment on CTIA’s assertion and on
what industry standards currently exist
that can be used to incorporate
accessibility or usability in advanced
communications services. We also seek
comment on what, if any, industry
standards should be developed to
incorporate accessibility or usability in
advanced communications services and
how these standards should be
developed.
94. In addition, we seek comment on
assertions by the RERC–IT that our rules
should prohibit ‘‘passive inaction or
setting of options * * * that impede
access.’’ We also seek comment on
AFB’s statement that under this
provision ‘‘digital rights management or
network security features or functions
must * * * be installed so as not to
impede accessibility.’’ Finally, we seek
comment on CTIA’s assertion that ‘‘any
rules seeking to limit the incorporation
of any network features or functions
recognize the need for covered entities
to manage all network traffic, including
advanced communications services.’’
7. Accessibility of Information Content
95. Section 716(e)(1)(B) of the Act
states that the Commission’s regulations
shall ‘‘provide that advanced
communications services, the
equipment used for advanced
communications services, and networks
used to provide [such services] may not
impair or impede the accessibility of
information content when accessibility
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has been incorporated into that content
for transmission through [such services,
equipment or networks].’’ In the October
public notice, the Bureaus sought
comment on how this provision should
be implemented and the types and
nature of information content that
should be addressed. We note that the
legislative history of the CVAA makes
clear that the requirements apply
‘‘where the accessibility of such content
has been incorporated in accordance
with recognized industry standards.’’
96. We seek further comment on what
these standards should be and how they
should be developed and reflected in
the Commission’s rules, subject to the
limitation on mandating technical
standards in section 716(1)(D). In
particular, we seek comment on the
RERC–IT proposal that our regulations
need to ensure that (i) ‘‘the accessibility
information (e.g., captions or
descriptions) are not stripped off when
information is transitioned from one
medium to another;’’ (ii) ‘‘parallel and
associated media channels are not
disconnected or blocked;’’ and (iii)
‘‘consumers * * * have the ability to
combine text, video, and audio
streaming from different origins.’’ We
also seek comment on how we can best
ensure that encryption and other
security measures do not thwart
accessibility, while at the same time
ensuring that we ‘‘promot[e] network
security, reliability, and survivability in
broadband networks.’’
97. We also note that the Access
Board Draft Guidelines require content,
which includes ‘‘information and
sensory experience communicated to
the user and encoding that defines the
structure, presentation, and interactions
associated with those elements’’ to be
accessible. The Draft Guidelines provide
text, images, sounds, videos, controls,
and animations as examples of content
and encourage, as a best practice, the
maximization of compatibility of
content with existing and future
technologies, including assistive
technology. The Draft Guidelines also
require user interfaces and their
functions to be accessible. For example,
under these Draft Guidelines, advanced
communications services, equipment,
and networks cannot strip captions that
make content accessible to people who
are deaf or hard of hearing from content
that provides closed captioning. We
seek comment on whether all or some
of these Draft Guidelines would be
appropriate for industry-recognized
standards or inclusion in the
Commission’s rules.
98. Finally, we agree with CEA that,
consistent with the legislation’s liability
limitations, that manufacturers and
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service providers are not liable for
content or embedded accessibility
content (such as captioning or video
description) that they do not create or
control. We seek comment on this
assessment.
IV. Implementation Requirements
A. Obligations
99. Section 716(e)(1)(C) of the Act
requires the Commission to ‘‘determine
the obligations * * * of manufacturers,
service providers, and providers of
applications or services accessed over
service provider networks.’’ Below, we
seek comment and make proposals
relating to the obligations of
manufacturers and service providers
and ask further questions about the
obligations of providers of applications
or services accessed over service
provider networks.
1. Manufacturers and Service Providers
100. With respect to equipment
manufacturers and service providers of
ACS, we propose to adopt general
obligations that mirror the language of
the statute, similar to the approach
taken in §§ 6.5 and 7.5 of our rules and
section 255 of the Communications Act.
Specifically, we propose that the
Commission’s rules set forth the
following ‘‘General Obligations’’:
Æ With respect to equipment
manufactured after the effective date of
the regulations, a manufacturer of
equipment used for advanced
communications services, including end
user equipment, network equipment,
and software, must ensure that the
equipment and software that such
manufacturer offers for sale or otherwise
distributes in interstate commerce shall
be accessible to and usable by
individuals with disabilities, unless
such requirements are not achievable.
Æ With respect to services provided
after the effective date of the
regulations, a provider of advanced
communications services must ensure
that services offered by such provider in
or affecting interstate commerce are
accessible to and usable by individuals
with disabilities, unless such
requirements are not achievable.
Æ If accessibility is not achievable
either by building it in or using third
party accessibility solutions, then a
manufacturer or service provider shall
ensure that its equipment or service is
compatible with existing peripheral
devices or specialized customer
premises equipment commonly used by
individuals with disabilities to achieve
access unless such compatibility is not
achievable.
Æ Providers of advanced
communications services shall not
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install network features, functions, or
capabilities that impede accessibility or
usability.
Æ Advanced communications services
and the equipment and networks used
to provide such services may not impair
or impede the accessibility of
information content when accessibility
has been incorporated into that content
for transmission through such services,
equipment or networks.
101. In addition, we propose to adopt
requirements similar to those in our
rules implementing section 255 of the
Act regarding product design,
development, and evaluation (§§ 6.7 and
7.7); information pass through (§§ 6.9
and 7.9); and information,
documentation and training (§§ 6.11 and
7.11), modified to reflect the statutory
requirements of section 716. Consistent
with the Section 255 Report and Order,
we find that adoption of the functional
approach reflected in such requirements
will provide clear guidance to covered
entities regarding their obligation to
ensure accessibility and usability. Some
key requirements of these proposed
rules include the following:
Æ Manufacturers and service
providers must consider performance
objectives at the design stage as early
and as consistently as possible and must
implement such evaluation to the extent
that it is achievable.
Æ Manufacturers and service
providers must identify barriers to
accessibility and usability as part of
such evaluation.
Æ Equipment used for advanced
communications services, including end
user equipment, network equipment,
and software must pass through crossmanufacturer, nonproprietary, industrystandard codes, translation protocols,
formats or other information necessary
to provide advanced communications
services in an accessible format, if
achievable. Signal compression
technologies shall not remove
information needed for access or shall
restore it upon decompression.
Æ Such information and
documentation includes user guides,
bills, installation guides for end user
devices, and product support
communications, in alternate formats, as
needed. The requirement to provide
access to information also includes
ensuring that individuals with
disabilities can access, at no extra cost,
call centers and customer support
regarding both the product generally
and the accessibility features of the
product.
102. We seek comment on these
proposed obligations for equipment
manufacturers and service providers of
ACS. In particular, we seek comment on
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whether we should adopt additional
obligations or make modifications to our
proposals.
2. Providers of Applications or Services
Accessed Over Service Provider
Networks
103. We also seek comment on what,
if any, obligations we should impose on
‘‘providers of applications or services
accessed over service provider
networks.’’ Are there any requirements
that we should impose on these
providers in order to ensure that the
statutory mandates of section 716 are
carried out? We also seek comment on
the meaning of ‘‘accessed over service
provider networks.’’ How does this
apply to applications and services that
are downloaded and then run as either
native or web applications on the
device? How does this apply to
applications and services accessed
through cloud computing?
B. Performance Objectives
104. Section 716(e)(1)(A) of the Act
provides that in prescribing regulations
for this section, the Commission shall
‘‘include performance objectives to
ensure the accessibility, usability, and
compatibility of advanced
communications services and the
equipment used for advanced
communications services by individuals
with disabilities.’’ In the October public
notice, the Bureaus sought comment on
how to interpret this provision,
including the extent to which these
objectives should be specific or general.
The October public notice also sought
comment on the usefulness of the
Access Board’s March 2010 draft
standards and guidelines on section 508
of the Rehabilitation Act.
105. We agree with the broad range of
commenters who stress the importance
of having performance objectives that
would clearly define the outcome
needed to be achieved without
specifying how these ends should be
accomplished. More specifically, we
agree with those commenters who
suggest that we incorporate into the
performance objectives the outcomeoriented definitions of ‘‘accessible,’’
‘‘compatibility,’’ and ‘‘usable’’ from
§§ 6.3 and 7.3 of the Commission’s
rules. We propose to adopt these
definitions as performance objectives
subject to any changes that we make to
these definitions as part of this
proceeding. We also agree with the IT
and Telecom RERCs that ‘‘performance
standards must * * * be testable,
concrete, and enforceable’’ and seek
further comment about how we can
accomplish these objectives. We
disagree with ITI’s suggestion that
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performance objectives be merely
‘‘aspirational.’’
106. We seek additional comment on
whether to adopt more specific
performance objectives, and on the
procedures and timelines that we
should use to develop these objectives.
While as a general matter it may be
desirable to harmonize the
Commission’s rules with the Access
Board Guidelines after the Access Board
finalizes its Guidelines, we seek
comment on what parts of the Access
Board Draft Guidelines may be useful to
us if we develop specific performance
objectives in the interim. We also seek
comment on AT&T’s assertion that ‘‘the
specific functionalities and standards
mandated by section 508 [for
government purchases of technology]
* * * may not be appropriate in all
circumstances for industry wide, mass
market application contemplated by
section 716.’’ In which instances would
the Access Board standards not be
appropriate for mass market
application? In which areas might they
be particularly instructive?
107. We also propose to update our
performance objectives, as appropriate,
after the Emergency Access Advisory
Committee (‘‘EAAC’’), which was
established pursuant to section 106 of
the CVAA, provides its
recommendations to the Commission in
December 2011. The EAAC, among
other things, is considering ‘‘what
actions are necessary as part of the
migration to a national Internet
protocol-enabled network to achieve
reliable, interoperable communication
transmitted over such network that will
ensure access to emergency services by
individuals with disabilities.’’ We
express our general belief that achieving
reliable, interoperable communication
over IP-enabled networks will have
applicability outside the emergency
access context and may be relevant to
developing performance objectives
under section 716 for advanced
communications services and
equipment used for these services. We
note as well that the Access Board Draft
Guidelines contain a proposal for real
time text requirements for hardware and
software whenever real-time voice is
supported, further supporting the need
to move forward with the
recommendation in our National
Broadband Plan to consider a standard
for reliable and interoperable real-time
text any time that VoIP is available and
supported.
108. With respect to interoperable
video conferencing services, we seek
input on what performance objectives or
rules need to be established to ensure
that, where achievable, interoperable
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video conferencing services and
equipment are accessible to and usable
by, individuals with disabilities, such as
individuals who are blind, have a visual
impairment, have limited manual
dexterity, or who are deaf, hard of
hearing, or deaf-blind. We also seek
comment on whether and to what extent
we have the authority to adopt industrywide performance objectives that would
set objectives for covered entities
collectively. We recognize, for example,
that no single entity working alone, can
ensure that video conferencing services
(or other advanced communications
services) are interoperable. If we were to
interpret section 716 to require
interoperability among all video
conferencing services, what industrywide performance objectives are needed
to achieve and ensure such
interoperability so that consumers are
able to make point-to-point calls using
different video conferencing services
and equipment? We also seek comments
on what performance objectives are
needed to address concerns expressed
by consumers about the general inability
of current video conferencing services to
connect to VRS in a manner that
achieves functional equivalency with
conventional voice telephone services.
In this regard, Consumer Groups urge
that mainstream video conferencing
equipment and services be required to
‘‘comply with standards, such as
requisite resolution and frame-rate, to
support real-time video conferencing
used for VRS, remote video interpreting,
and point-to-point communication.’’ We
note that the Access Board Draft
Guidelines on section 508 propose that
products used to transmit video
conversations provide sufficient quality
and fluidity for real-time video
conversation in which at least one party
is using a visual method of
communication, such as sign language.
109. It appears that video
conferencing equipment now available
off-the-shelf to the general public does
not match the capabilities of proprietary
equipment offered by VRS providers in
other ways as well. First, although our
VRS rules require ten-digit numbering
capability on VRS-provided video
equipment—to enable the owners of
such equipment to make point-to-point
calls to one another—this capability
does not presently exist in video
conferencing equipment such as off-theshelf videophones. Consumer Groups
urge that the North American
Numbering Plan (‘‘NANP’’) 10-digit
telephone number system be ‘‘adopted
and/or adapted by [mainstream] video
conferencing equipment and service
providers to make their systems
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interoperable with other systems and
users, including VRS users.’’ Finally, we
note, that while not yet universal,
Consumer Groups envision multipoint
control unit (MCU) capability in video
conferencing services when VRS is
provided so that all parties to the call
can see the VRS communications
assistant and each other simultaneously.
We therefore seek comment on
performance objectives for mainstream
interoperable video conferencing
services and equipment to address
multiple video conferencing needs by
people with disabilities, including the
need for point-to-point calls where at
least one party is using a visual method
of communication, such as sign
language; for functionally equivalent
VRS; for multi-party conferencing via
MCUs; for ten-digit numbering (or an
alternative means of identifying and
contacting one another); for effective
emergency access; and for the delivery
of video remote interpreting services.
110. We also seek comment on
whether industry or the Commission
should establish a working group of
diverse stakeholders to address the
interoperability issues relating to video
conferencing services and equipment. If
so, should the goals be focused on
ensuring interoperability among the
largest service providers and equipment
manufacturers? How can we ensure that
new entrants and software application
developers would be fully represented
in such a process? We ask commenters
to set forth in detail the goals of such
a group, which stakeholders should be
included, the specific issues that such a
working group should consider, and a
timeline for completion of its work. We
further ask whether such group should
be part of the Commission’s Consumer
Advisory Committee, or be a standalone entity. Finally, we seek comment
on what industry efforts are ongoing to
address interoperability challenges and
the degree to which such efforts have
been effective.
111. Finally, we note that the
comments to the October public notice
contain relatively little discussion of
‘‘electronic messaging services’’ and
‘‘non-interconnected VoIP services.’’ We
seek further comment about the specific
accessibility concerns relating to these
services and whether we should adopt
specific performance objectives to
address these concerns. We also seek
comment on whether it would be
appropriate to establish a working group
of diverse stakeholders to provide
recommendations related to such
performance objectives.
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V. Industry Guidance
A. Safe Harbors
112. Section 716(e)(1)(D) of the Act
provides that the Commission ‘‘shall
* * * not mandate technical standards,
except that the Commission may adopt
technical standards as a safe harbor for
such compliance if necessary to
facilitate the manufacturers’ and service
providers’ compliance’’ with the
accessibility and compatibility
requirements in section 716. In the
October public notice, we sought
comment on whether we should adopt
safe harbor technical standards.
113. The vast majority of commenters
oppose establishing technical standards
as safe harbors. CTIA and AT&T assert
that safe harbors will result in de facto
standards being imposed that will limit
the flexibility of covered entities seeking
to provide accessibility. The IT and
Telecom RERCs state that the
Commission’s rules should not include
safe harbors because ‘‘technology,
including accessibility technology, will
develop faster than law can keep up.’’
AFB asserts that it is too early in the
CVAA’s implementation ‘‘to make
informed judgments * * * about
whether and which safe harbors should
be available.’’ While ITI supports safe
harbors, noting they provide clarity and
predictability, it warns against using
safe harbors ‘‘to establish implicit
mandates [that] * * * lock in particular
solutions.’’ In light of the concerns
raised in the record, we agree with AFB
that it is too early in the implementation
of the CVAA to make informed
judgments about whether safe harbor
technical standards should be
established. Therefore, we propose not
to adopt any technical standards as safe
harbors at this time. We seek comment
on this proposal.
B. Prospective Guidelines
114. Section 716(e)(2) of the Act
requires the Commission to issue
prospective guidelines concerning the
new accessibility requirements. While
the Senate Report did not discuss this
provision, the House Report notes that
such guidance ‘‘makes it easier for
industry to gauge what is necessary to
fulfill the requirements’’ by providing
industry with ‘‘as much certainty as
possible regarding how the Commission
will determine compliance with any
new obligations.’’
115. We agree with CTIA that the
prospective guidelines that we adopt
must be clear and understandable and
provide service providers and
manufacturers as much flexibility as
possible, so long as achievable
accessibility requirements are satisfied.
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We seek comment on a proposal by the
RERC–IT, endorsed by ACB, that we use
‘‘an approach to the guidelines similar to
that used by the World Wide Web
Consortium’s Web Content Accessibility
Guidelines (WCAG), which provide
mandatory performance-based standards
and non-mandatory technology-specific
techniques for meeting them.’’ We also
seek comment on whether any parts of
the Access Board’s Draft Guidelines on
section 508 of the Rehabilitation Act
should be adopted as prospective
guidelines. In addition, we seek
comment on the process that should be
used to develop prospective guidelines
and to ensure that a diverse and
broadly-based group of stakeholders
participate in such an effort. Should the
Commission, for example, establish a
consumer-industry advisory group to
prepare these?
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VI. Section 717
Enforcement
Recordkeeping and
A. Overview
116. Section 717(a) of the Act requires
the Commission to establish new
recordkeeping and enforcement
procedures for ‘‘manufacturers and
providers subject to [sections 255, 716,
and 718.]’’ In the October public notice,
the Bureaus sought comment on these
requirements, including the types of
records that should be maintained and
the possible enforcement procedures
that should be imposed. We will discuss
the recordkeeping and enforcement
requirements in further detail below,
including a proposal to amend the
existing rules implementing section 255
of the Act and to add a new rule subpart
to implement the requirements of
section 717. For purposes of our
discussion below, we propose to apply
the section 717 requirements to
manufacturers of equipment used for
telecommunications services,
interconnected VoIP, voicemail and
interactive menu services subject to
section 255 of the Act; manufacturers of
equipment used for ACS subject to
section 716; and manufacturers of
telephones used with public mobile
services which include an Internet
browser, subject to section 718. We also
propose to apply the section 717
requirements to providers of
telecommunications services,
interconnected VoIP services, voicemail
or interactive menu services subject to
section 255 of the Act; providers of ACS
subject to section 716; and providers of
mobile services who arrange for the
inclusion of a browser in telephones,
subject to section 718. Finally, we
reiterate our proposal to subject
providers of applications and services
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that can be used for ACS and that can
be accessed (i.e., downloaded or run) by
users over other service provider
networks to the requirements of section
716 and thus by extension cover them
under section 717. We seek comment on
these proposals.
B. Recordkeeping
117. Beginning one year after the
effective date of regulations
promulgated pursuant to section 716(e),
each manufacturer and provider subject
to sections 255, 716, and 718 must
maintain, in the ordinary course of
business and for a reasonable period,
records of the efforts taken by such
manufacturer or provider to implement
sections 255, 716, and 718, including:
(1) Information about the manufacturer’s
or provider’s efforts to consult with
individuals with disabilities; (2)
descriptions of the accessibility features
of its products and services; and (3)
information about the compatibility of
such products and services with
peripheral devices or specialized
customer premise equipment commonly
used by individuals with disabilities to
achieve access. Section 717 also
requires an officer of a manufacturer or
provider to submit to the Commission
an annual certification that records are
being kept in accordance with this
provision. Section 717 also states that
‘‘[a]fter the filing of a formal or informal
complaint against a manufacturer or
provider, the Commission may request,
and shall keep confidential, a copy of
the records maintained by such
manufacturer or provider pursuant to
[this section] that are directly relevant to
the equipment or service that is the
subject of such complaint.’’ We seek
comment on how to implement these
statutory requirements and solicit
specific input below.
118. Some commenter urge the
Commission to refrain from making the
recordkeeping requirements overly
burdensome, unnecessarily expensive,
or repetitive of the information required
by existing reports. Motorola notes that
it and some covered entities already
publicly provide some of the
information required by Section 717,
including information regarding
accessibility features, consultations with
individuals with disabilities, and
compatibility with third party
peripherals submitted in existing
Commission reports, such as those
required for compliance with our HAC
rules. CEA also states that ‘‘outreach to
individuals with disabilities either
directly or indirectly through standards
development organizations’’ should be
sufficient to demonstrate a company’s
compliance with Section 717’s
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requirement to document efforts to
consult with individuals with
disabilities. Additionally, CEA points
out that some of the required
information may be reflected in
information provided to the
clearinghouse that will be established
under the CVAA.
119. We note, however, that section
717 requires the Commission to
establish uniform recordkeeping and
enforcement procedures for entities
subject to sections 255, 716, and 718.
While some of these records that section
717 requires to be kept and, potentially,
produced may be available publicly, in
other reports or submissions made to
the Commission or Bureau, or in
information submitted to a
clearinghouse, most of the information
required by this section is not required
in existing Commission reports and it is
not clear to what extent this will be
available in public information.
120. While we agree that we should
avoid imposing excessive burdens or
requiring the same information multiple
times, we also seek to ensure that
specific and relevant records required
by the statute are appropriately
maintained by manufacturers and
providers. In light of the range of
potential complaints that may be filed
against covered entities under the
CVAA and section 255, we seek
comment on how the Commission
should effectively implement section
717’s recordkeeping requirements
without imposing excessive burden or
expense on covered entities or requiring
multiple submissions of the same
records to the Commission.
121. Section 717 appears to give the
Commission the discretion to expand
the recordkeeping requirements beyond
the three categories specifically set forth
in subsection (a)(5)(A) to ‘‘records of the
efforts taken by such manufacturer or
provider to implement’’ these Sections.
We seek comment on whether the
Commission should require covered
entities to maintain and, potentially,
produce records to demonstrate their
compliance with the provisions of
section 255 and similarly structured
requirements in section 716. We also
seek comment on what constitutes a
‘‘reasonable time period’’ during which
covered entities will be required to
maintain these records. Should we
require covered entities to create and
maintain records showing their
compliance with the general obligation
requirements as well as the
requirements of product design,
development, and evaluation,
information pass through, and
information, documentation, and
training? For example, should we
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require covered entities to create and
maintain records demonstrating the
process they have used to assess
whether it is achievable to make
particular products and services
accessible and usable by persons with
disabilities? What kinds of records
would be sufficient to demonstrate such
compliance? We also seek comment on
whether the Commission should require
these or any other types of records to
demonstrate covered entities’
compliance with section 255.
122. Many comments on the
recordkeeping requirement request that
the Commission adopt a flexible
approach to section 717’s recordkeeping
requirement that recognizes the
differences in size and scope of covered
entities and their communications
services or manufacturing operations,
instead of requiring a specific form of
documentation. Verizon recommends
that the Alliance for
Telecommunications Industry Solutions
(ATIS) or a similar organization develop
a standard recordkeeping form that
could be used to satisfy this
requirement. While ATIS, on behalf of
AISP.4–HAC, expresses a preference for
flexible recordkeeping requirements,
ATIS also supports Verizon’s suggestion
that industry and consumers should
work together to develop a mutually
agreeable form in the event the
Commission decides to adopt a
standardized approach. CTIA
specifically requests that the
Commission allow records to be kept
electronically. TIA suggests that the
Commission should ‘‘provide some nonexclusive guidance concerning the type
of information that would be responsive
to the statutory recordkeeping criteria’’
without precluding flexibility in the
form in which those records may be
kept. We seek comment on these
recommendations.
123. We recognize that section 717
applies to a broad range of entities that
have widely ranging business models
and modes of operation. Therefore,
consistent with some commenters’
suggestions, we propose that we should
not mandate any one form in which
records must be kept in order to comply
with section 717. We also propose that
if a record (that the Commission
requires be produced after receipt of a
complaint) is not readily available, the
covered entity must provide it no later
than the date of its response to the
complaint. We seek comment on these
proposals and on whether there is any
reason for the Commission to mandate
a standard form of recordkeeping to
comply with section 717(a)(5) or to
require covered entities to submit
publicly available records or those the
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Commission already has in another
report or submission. While we cannot
predict what the nature of consumers’
complaints will be or provide specific
guidance as to what information will be
responsive to those complaints, we
propose, as discussed more fully below,
to require each response to a filed
complaint to sufficiently describe how
each record submitted is relevant to the
complaint and the alleged violation, and
how the provided record establishes the
covered entity’s compliance with the
Act. Finally, given that the statute
provides that recordkeeping
requirements do not take effect until one
year after the effective date of
regulations promulgated pursuant to
section 716(e), we seek comment
regarding whether, and if so, in what
fashion, the Commission should address
this transition period, particularly for
the purposes of enforcement.
C. Enforcement
1. Background
124. Section 717 requires the
Commission to adopt rules that facilitate
the filing of formal and informal
complaints that allege a violation of
section 255, 716, or 718 and to establish
procedures for enforcement actions by
the Commission with respect to such
violations, within one year of enactment
of the law. In this section, we seek
comment on specific procedures to
implement these requirements and
propose rules to consolidate the existing
enforcement provisions for section 255
with the newly proposed enforcement
rules for alleged violations of sections
716 and 718.
a. Enforcement of Section 255
125. In the rules adopted in the
Section 255 Report and Order, the
Commission provided form and content
requirements for informal and formal
complaints alleging a violation of
section 255, as well as review and
disposition procedures. In particular,
the Commission established specific
elements to be included in any informal
complaint alleging a violation of section
255 of the Act as well as the form and
content for answers to such complaints.
These rules provide that if the
Commission determines that an
informal complaint has been satisfied
based on the defendant’s answer, or
from other communications with the
parties, the Commission may, at its
discretion, consider the informal
complaint closed, without providing a
response to the complainant or
defendant. Additionally, the
Commission may close the informal
complaint if it determines that no
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13817
further action is necessary based on the
complaint and answer, and will then
duly inform the complainant and the
defendant of the reasons stated above. If,
however, the Commission, based on the
pleadings, determines that a material
and substantial question remains as to a
defendant’s compliance with the section
255 requirements and the Commission’s
implementing rules, the Commission
may conduct further investigation or
proceedings as necessary to determine
whether the defendant has violated any
legal requirements, as well as whether
any remedial actions and/or sanctions
are warranted. If the Commission
determines that a defendant has failed
to comply with section 255 and its
implementing rules, the Commission
can order such remedial action or
sanctions as are authorized by the Act
and the rules as it deems appropriate.
Aside from its complaint procedures,
the Commission may, on its own
motion, conduct inquiries and initiate
proceedings as necessary to enforce the
relevant requirements.
b. Section 717 Enforcement
Requirements
126. As discussed above, section 717
requires the Commission within one
year after the date of enactment of the
CVAA to establish regulations that
facilitate the filing of formal and
informal complaints that allege a
violation of section 255, 716, or 718,
and to establish procedures for
enforcement actions.
127. Specifically, the CVAA requires
the Commission to establish separate
and identifiable electronic, telephonic,
and physical receptacles for the receipt
of complaints filed under section 255,
716 or 718 as well as establish a process
for filing and receiving formal or
informal complaints. Further, the CVAA
requires the Commission to investigate
the allegations in an informal complaint
and, within 180 days after the date on
which such complaint was filed with
the Commission, issue an order
concluding the investigation and
provide an explanation for its
conclusion, unless such complaint is
resolved before such time. If the
Commission determines that a violation
has occurred, the Commission may, in
the order or in a subsequent order,
direct the manufacturer or service
provider to bring the service, or in the
case of a manufacturer, the next
generation of the equipment or device,
into compliance with requirements of
those sections within a reasonable time
established by the Commission in its
order. If a determination is made that a
violation has not occurred, the
Commission must provide the basis for
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such determination. The statute also
provides that before the Commission
makes a determination, the party that is
the subject of the complaint shall have
a reasonable opportunity to respond to
such complaint, and may include in its
response any factors that are relevant to
such determination. Before issuing a
final order, the Commission is required
to provide the responding party a
reasonable opportunity to comment on
any proposed remedial action.
2. General Requirements
128. Pre-Filing Notice. We seek
comment on whether the Commission
should require potential complainants
to first notify the defendant
manufacturer or provider that it intends
to file a complaint based on an alleged
violation of one or more provisions of
section 255, 716, or 718. We note that
some parties have suggested that such a
pre-filing notice can potentially foster
greater communication among parties.
While we agree that such a requirement
could lead to a more efficient resolution
in advance of a complaint in some
instances, we are also concerned that in
other cases, such a requirement could
prove burdensome to consumers and
delay resolution of complaints. In the
Section 255 Report and Order,
consistent with an Access Board
recommendation, we encouraged
consumers to express their concerns
informally to the manufacturer or
service provider before filing a
complaint with the Commission. We
declined, however, to adopt a rule
requiring consumers to contact
manufacturers and service providers
before they could file a complaint with
the Commission, finding that our
informal complaint process is ‘‘geared
toward cooperative efforts.’’ We seek
comment on whether such an approach
is sufficient or whether a specific
requirement is necessary. To the extent
that commenters advocate that we
require that consumers notify
manufacturers or providers before they
file a complaint, we seek comment on
specific safeguards that we should adopt
to ensure that this requirement does not
prove onerous to the consumers.
129. Receipt and Filing of Complaints.
We seek comment on how the
Commission should establish separate
and identifiable electronic, telephonic,
and physical receptacles for the receipt
of complaints, both formal and informal.
We note that the Commission’s
Disability Rights Office has already
established a new phone number (202–
418–2517(V); (202–418–2922 (TTY) and
e-mail address (dro@fcc.gov) for this
purpose. We also note that currently,
informal complaints alleging a violation
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of section 255 may be transmitted to the
Commission via any reasonable means,
e.g., letter, facsimile transmission,
telephone (voice/TRS/TTY), Internet email, audio-cassette recording, and
Braille. We propose to retain these
vehicles as means for transmission and
receipt of informal complaints by the
Commission under sections 255, 716
and 718 and ask commenters to
consider whether additional methods
are necessary to meet this statutory
requirement. Similarly, as discussed
more fully below, we seek comment on
the extent to which we should retain or
revise our current requirements under
section 255 governing formal
complaints that are filed for alleged
violations by manufacturers and
providers under sections 255, as well as
sections 716 and 718, in the future. At
present, these procedures are consistent
with §§ 1.720–1.736 of the
Commission’s rules. If we make changes
to facilitate the filing of informal
complaints, but continue to apply our
procedures for formal complaints
largely in their current form to the new
ACS sections (as well as maintain these
procedures for section 255), will this be
enough to fulfill Congress’s intent to
facilitate the filing of complaints under
these sections? We note that since our
rules implementing section 255 of the
Act went into effect in 1999, the
Commission has received only three
formal complaints alleging violations of
that section.
130. Standing to File. We received
comments requesting that the
Commission establish ‘‘reasonable’’
standing requirements. We note that the
CVAA allows ‘‘any person alleging a
violation’’ of the CVAA or the
implementing rules to file a formal or
informal complaint under section 255,
716, or 718. Given that there is no
standing requirement under these
sections, and there is no standing
requirement under either section 208 of
the Act and our existing complaint
rules, we decline to propose a standing
requirement and believe the minimum
content requirements we propose infra
in sections VI.C.3 and VI.C.4 will
effectively deter frivolous complaint
filings.
131. Sua sponte actions by the
Commission. As noted above, the
Commission’s implementing rules for
section 255 explicitly state that the
agency may, on its own motion, conduct
inquiries and proceedings as necessary
to enforce the requirements of its
implementing rules and that section of
the Act. We intend for the Commission
and its staff to continue to investigate
and take action on our own motion
when compliance issues or problems
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involving sections 255, 716 and 718
come to our attention through an
accessibility-related complaint or
otherwise. Rather than establishing
specific guidelines for initiating
investigations and other enforcement
actions on the Commission’s own
motion, we propose to continue to
follow existing protocols, and use
procedures that in the opinion of the
Commission best serve the purposes of
Commission- and staff-initiated
inquiries and proceedings. We seek
comment on this approach.
132. Remedies and Sanctions. We
seek comment on what remedies and
other sanctions the Commission should
consider for violations found to have
occurred under section 255, 716 or 718.
As a preliminary matter, as noted above,
we observe that section 717(a)(3)(B)
specifically authorizes the Commission
to impose as a remedy for any violation
an order directing a manufacturer to
bring the next generation of its
equipment or device, and a service
provider to bring its service, into
compliance within a reasonable period
of time. We also observe that section
718(c) envisions that we will continue
to use our existing enforcement
authority under section 503 of the Act,
but specifically adds that (subject to
section 503(b)(5)) manufacturers and
service providers subject to the
requirements of sections 255, 716, and
718 are liable for forfeitures of up to
$100,000 per violation or each day of a
continuing violation, with the
maximum amount for a continuing
violation set at $1 million. We intend to
use these statutorily directed remedies
and sanctions as well as other remedies
and sanctions authorized in the Act. We
propose a change to section 1.80 of the
Commission’s rules to reflect the
modifications of section 718(c) to the
Act.
133. We seek comment on whether
there are additional remedies that the
Commission should consider when a
violation is determined to have
occurred. The Senate and House Reports
make clear that we should not consider
remedies that require retrofitting of
equipment, and accordingly, we agree
with CEA that we should not employ
those remedies for violations of these
provisions. We also note that AFB
suggests that when a complaint is filed
and a given product is not accessible,
but the company nevertheless offers an
array of accessible options, ‘‘the
Commission should require the
company to demonstrate that it can offer
the complainant at least one other of its
products that satisfies the [CVAA’s]
requirements and that would provide
the complainant at least the same
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features and level of functionality as the
product that is the subject of the
complaint’’ and at a comparable cost to
the inaccessible product. While we
agree that this may be a potential
defense, we clarify that the issue of
whether a subject entity satisfies its
accessibility obligations is a fact-specific
determination that will be decided in
the context of a complaint proceeding
based on the record. More specifically,
we believe our determination about
what is achievable must take into
account all four factors enumerated
under section 716(g), not just the fourth
factor that considers ‘‘the extent to
which the service provider or
manufacturer in question offers
accessible services or equipment
containing varying degrees of
functionality and features, and offered
at differing price points.’’
3. Informal Complaints
134. As described above, within one
year after the date of enactment of the
CVAA, the Commission is required to
establish regulations that facilitate the
filing of an informal complaint that
alleges a violation of section 255, 716 or
718, as well as establish procedures for
enforcement actions by the Commission
for any violations.
135. We note that commenters suggest
that any enforcement procedures should
provide clarity regarding culpability,
given that a product or service may
potentially involve several different
entities such as a device manufacturer,
a broadband provider, or an application
developer. We acknowledge that it may
be difficult for a consumer to determine
where the responsibility of one covered
entity ends and another begins. We seek
comment on what additional procedures
the Commission might adopt to clarify
which entity is ‘‘culpable’’ for
noncompliance and further ask to what
extent the Commission should be
available to assist consumers in
determining which entities are
appropriately targeted by specific
complaints? We also seek comment on
what additional elements should be
included in complaints that are filed
under these sections, beyond what is
proposed below.
136. We propose the following
minimum requirements that
complainants should include in their
informal complaints, which are
consistent with section 255
requirements as well as existing
enforcement rules that have been
adopted in other contexts. Specifically,
we propose to include the following in
any informal complaint: (1) The name,
address, e-mail address and telephone
number of the complainant, and the
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manufacturer or service provider
defendant against whom the complaint
is made; (2) a complete statement of
facts explaining why the complainant
contends that the defendant
manufacturer or provider is in violation
of section 255, 716 or 718, including
details regarding the service or
equipment and the relief requested, and
all documentation that supports the
complainant’s contention; (3) the date or
dates on which the complainant or
person on whose behalf the complaint is
being filed either purchased, acquired,
or used (or attempted to purchase,
acquire, or use) the equipment or
service about which the complaint is
being made; (4) the complainant’s
preferred format or method of response
to the complaint by the Commission and
defendant (e.g., letter, facsimile
transmission, telephone (voice/TRS/
TTY), Internet e-mail, audio-cassette
recording, Braille; or some other method
that will best accommodate the
complainant’s disability); and (5) any
other information that is required by the
Commission’s accessibility complaint
form. We seek comment on this
proposal and request parties to consider
what additional or modified
requirements are necessary. Complaints
that do not satisfy the pleading
requirements will be dismissed without
prejudice to refile. (The CVAA
requirement for the Commission to issue
an order concluding an investigation
that is triggered by informal complaint,
within 180 days of the filing complaint,
will be tied to the Commission’s receipt
of complaint that satisfies its pleading
requirements.)
137. We also recognize that the
CVAA’s recordkeeping requirements
will allow the Commission to obtain
records of the efforts taken by
manufacturers or providers to
implement sections 255, 716, and 718
and the Commission may use these
records as necessary to determine
whether a covered entity has complied
with its legal obligations. Additionally,
consistent with our rules implementing
section 255 of the Act, we propose to
maintain our current rule that the
Commission will promptly forward any
informal complaint meeting the
appropriate filing requirements to each
defendant named or determined to be
implicated by the complaint. Also,
consistent with our approach taken in
our rules implementing section 255 of
the Act, we propose to require
manufacturers and service providers to
establish points of contact for
complaints and inquiries under section
255, 716 or 718. We continue to believe
that this requirement will facilitate the
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ability of consumers to contact
manufacturers and service providers
directly about accessibility issues or
concerns and ensure prompt and
effective service of complaints on
defendant manufacturers and service
providers by Commission staff. We seek
comment on this proposal.
138. As discussed above, the CVAA
provides a party that is the subject of a
complaint a reasonable opportunity to
respond to such a complaint. Consistent
with this requirement, we propose that
answers to informal complaints must:
(1) Be filed with the Commission and
served on the complainant within
twenty days of service of the complaint,
unless the Commission or its staff
specifies another time period; (2)
respond specifically to each material
allegation in the complaint; (3) set forth
the steps taken by the manufacturer or
service provider to make the product or
service accessible and usable; (4) set
forth the procedures and processes used
by the manufacturer or service provider
to evaluate whether it was achievable to
make the product or service accessible
and usable; (5) set forth the names,
titles, and responsibilities of each
decisionmaker in the evaluation
process; (6) set forth the manufacturer’s
basis for determining that it was not
achievable to make the product or
service accessible and usable; (7)
provide all documents supporting the
manufacturer’s or service provider’s
conclusion that it was not achievable to
make the product or service accessible
and usable; (8) include a certification by
an officer of the manufacturer or service
provider that it was not achievable to
make the product or service accessible
and usable; (9) set forth any claimed
defenses; (10) set forth any remedial
actions already taken or proposed
alternative relief without any prejudice
to any denials or defenses raised; (11)
provide any other information or
materials specified by the Commission
as relevant to its consideration of the
complaint; and (12) be prepared or
formatted in the manner requested by
the Commission and the complainant,
unless otherwise permitted by the
Commission for good cause shown. We
seek comment on this proposal. We
further propose that within ten (10) days
after service of an answer, unless
otherwise directed by the Commission,
the complainant may file and serve a
reply, which shall be responsive to
matters contained in the answer and
shall not contain new matters. We seek
comment on this proposal as well.
Given the statutory requirement for the
Commission to issue an order
concluding an investigation of an
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informal complaint within 180 days of
the filing of the complaint, are there
other pleading requirements we should
impose, and, if so, what should these
be?
139. As noted above, the CVAA
requires the Commission to issue an
order that finds whether a violation has
occurred within the time limits required
by the Act, and to provide an
explanation for its conclusion. Also, as
we have noted, the statute provides that
if the Commission determines that a
violation has occurred, the Commission
may direct the manufacturer or service
provider to bring the service, or in the
case of a manufacturer, the next
generation of the equipment or device,
into compliance with requirements of
those sections within a reasonable time
established by the Commission in its
order. In addition, as also previously
mentioned, before issuing a final order,
the Commission is required to provide
the responding party a reasonable
opportunity to comment on any
proposed remedial action. We would
further note that the CVAA authorizes
the Commission to direct manufacturers
and service providers of ACS to bring
their equipment and services into
compliance either in the order
concluding an investigation based on an
informal complaint or ‘‘in a subsequent
order.’’ Recognizing the importance of
the rapid implementation of remedies to
achieving the CVAA’s broader goals,
however, we will endeavor to issue a
determination regarding remedies
within 180 days after an informal
complaint is filed, or shortly thereafter
in a subsequent order, whenever
feasible. (The Commission must,
however, conclude the investigation and
include a determination whether any
violation occurred within 180 days.) We
seek comment on this approach.
140. We recognize that the
Commission must exercise any remedial
authority selectively and carefully,
based on legislative history, particularly
for consumer and wireless devices,
clarifying that ‘‘the Commission shall
provide [service providers and
manufacturers] a reasonable time to
bring the service or equipment at issue
into compliance * * * [and should not]
require retrofitting of such equipment
that is already in the market.’’ We seek
comment on what we should consider a
reasonable time in which to bring
inaccessible devices or services into
compliance and how best to impose
compliance in this context consistent
with our proposals for remedies and
sanctions discussed above. We also seek
input on what constitutes ‘‘reasonable
opportunity’’ to comment on any
proposed remedial action.
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4. Formal Complaints
141. Applicability of sections 1.720–
1.736. In addition to allowing aggrieved
parties an opportunity to file informal
complaints, section 717 states that such
parties may use our more formal
adjudicative procedures to pursue
accessibility claims against
manufacturers or service providers
under sections 255, 716 and 718. This
section further directs the Commission
to establish regulations that facilitate the
filing of such formal claims. To date,
section 255 claims have been subject to
the procedures laid out in §§ 1.720–
1.736 of the Commission’s rules. Under
these rules, both complainants and
defendants are required to (1) certify in
their respective complaints and answers
that they attempted in good faith to
settle the dispute before the complaint
was filed with the Commission; and (2)
submit detailed, factual and legal
support, accompanied by affidavits and
documentation, for their respective
positions in the initial complaint and
answer. The rules also place strict limits
on the availability of discovery and
subsequent pleading opportunities to
present and defend against claims of
misconduct. Additionally, the rules
include additional procedural and
pleading requirements designed to
expedite resolution of any formal
complaint. We propose to require
aggrieved parties to follow our existing
formal complaint procedures, as
modified in our proposed rules. These
modifications include deleting
references to provisions that are not
relevant to consumer-filed complaints
in the accessibility context (e.g.,
provisions relating to complaints filed
under section 271 of the Act), as well as
to ‘‘rocket docket’’ procedures. Because
the CVAA requires the Commission to
address informal complaints within 180
days of filing, and because our
accelerated docket procedures were
designed to adjudicate disputes between
carriers that satisfy certain criteria, we
are inclined not to extend these
procedures to formal complaints in the
accessibility context. We seek comment
on whether we should consider
additional modifications to these rules
in order to facilitate the filing of such
formal complaints.
142. Additionally, we propose not to
require parties to obtain Commission
approval in order to file a formal
complaint; we also propose not to
require parties to invoke our informal
complaint processes as a prerequisite to
filing a formal complaint. No such
requirements exist in the statute or our
formal complaint rules and we find no
basis in the existing record to conclude
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that such requirements are needed for
complaints filed under section 255, 716
or 718. We seek comment on this
proposal and ask parties to describe
whether there are any circumstances
that warrant such requirements.
VII. Section 718 Internet Browsers
Built Into Telephones Used With Public
Mobile Services
143. We seek further comment on the
upcoming obligations imposed by
section 718 which generally provides
that ‘‘[i]f a manufacturer of a telephone
used with public mobile services * * *
includes an Internet browser in such
telephone, or if a provider of mobile
service arranges for the inclusion of a
browser in telephones to sell to
customers, the manufacturer or provider
shall ensure that the functions of the
included browser (including the ability
to launch the browser) are accessible to
and usable by individuals who are blind
or have a visual impairment, unless
doing so is not achievable.’’
144. While section 718’s requirements
will not take effect for three years, we
agree with ACB that the accessibility of
mobile Web access technologies is
critical and seek comment on the best
way(s) to implement section 718, so as
to afford affected manufacturers and
service providers an opportunity to
provide input at the outset, as well as
to make the necessary arrangements to
achieve compliance by the time the
provisions go into effect. We would
particularly welcome input on how the
Commission can best inform and assist
covered entities on the means by which
they can meet their obligation to
provide access to Internet browsers in
mobile phones. Specifically, we seek
comment on Verizon’s proposal that we
‘‘encourage industry forums and
working groups to develop accessibility
standards for mobile browsers’’ because
a ‘‘cooperative effort’’ will be needed to
ensure compliance. To what extent
should the Commission help to facilitate
this discussion, for example through an
advisory committee or a working group
that is part of the Commission’s
Consumer Advisory Committee? We
also seek comment on Code Factory’s
recommendation that manufacturers
and operating system developers
develop an accessibility API to foster
the incorporation of screen readers into
mobile platforms across different
phones which would render the Web
browser and other mobile phone
functions accessible to individuals who
are blind or visually impaired.
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VIII. Procedural Matters
Comment Period and Procedures
145. Pursuant to §§ 1.415 and 1.419 of
the Commission’s rules, 47 CFR 1.415,
1.419, interested parties may file
comments and reply comments on or
before the dates indicated on the first
page of this document. Comments may
be filed using: (1) The Commission’s
Electronic Comment Filing system
(ECFS), (2) the Federal Government’s
eRulemaking Portal, or (3) by filing
paper copies. See Electronic Filing of
Documents in Rulemaking Proceedings,
63 FR 24121 (1998).
• 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. Comments shall be
sent as an electronic file via the Internet
to https://www.fcc.gov/e-file/ecfs.html. In
completing the transmittal screen,
commenters should include their full
name, Postal Service mailing address,
and the applicable docket number.
Parties may also submit an electronic
comment by Internet e-mail. To get
filing instructions for e-mail comments,
commenters 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
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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 pm 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.
• People with Disabilities: To request
materials in accessible formats for
people with disabilities (braille, large
print, electronic files, audio format),
send an e-mail to fcc504@fcc.gov or call
the Consumer & Governmental Affairs
Bureau at 202–418–0530 (voice), 202–
418–0432 (tty).
• Availability of Documents: The
public may view the documents filed in
this proceeding during regular business
hours in the FCC Reference Information
Center, Federal Communications
Commission, 445 12th Street, SW.,
Room CY–A257, Washington, DC 20554,
and on the Commission’s Internet Home
Page: https://www.fcc.gov. Copies of
comments and reply comments are also
available through the Commission’s
duplicating contractor: Best Copy and
Printing, Inc., 445 12th Street, SW.,
Room CY–B402, Washington, DC 20554,
1–800–378–3160.
Initial Regulatory Flexibility Analysis
146. As required by the Regulatory
Flexibility Act of 1980, as amended
(‘‘RFA’’), the Commission has prepared
this present Initial Regulatory
Flexibility Analysis (‘‘IRFA’’) of the
possible significant economic impact on
a substantial number of small entities
that might result from adoption of the
rules proposed in the Notice of
Proposed Rulemaking (‘‘NPRM’’).
Written public comments are requested
on this IRFA. Comments must be
identified as responses to the IRFA and
must be filed by the applicable
deadlines for initial comments, or reply
comments, as specified in the NPRM.
The Commission will send a copy of the
NPRM, including this IRFA, to the Chief
Counsel for Advocacy of the Small
Business Administration (‘‘SBA’’). In
addition, the NPRM and this IRFA (or
summaries thereof) will be published in
the Federal Register.
A. Need for, and Objectives of, the
Proposed Rules
147. The purpose of these proposed
rules is to implement Congress’ mandate
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that people with disabilities have access
to advanced communications services
and equipment. Specifically, these rules
are proposed to implement sections 716
and 717 of the Communications Act of
1934, as amended, which were added by
the ‘‘Twenty-First Century
Communications and Video
Accessibility Act of 2010’’ (‘‘CVAA’’).
Given the fundamental role that
advanced communications services
have come to play in today’s world, the
Commission believes that the CVAA
represents the most significant
governmental action for people with
disabilities since the passage of the
Americans with Disabilities Act of 1990
(‘‘ADA’’). The inability to access
communications equipment and
services can be life-threatening in
emergency situations, can severely limit
educational and employment
opportunities, and can otherwise
interfere with full participation in
business, family, social, and other
activities. Many of these proposals build
on our rules implementing section 255
of the Communications Act, which was
added by the Telecommunications Act
of 1996 and provides for the
accessibility of telecommunications
services and equipment.
148. The NPRM makes proposals to
implement the requirements of section
716, which requires that providers of
advanced communications services and
manufacturers of equipment used for
such services make their products
accessible to people with disabilities,
unless it is not achievable to do so. It
also proposes rules relating to section
717, which requires the Commission to
establish new recordkeeping and
enforcement procedures for
manufacturers and providers subject to
section 716 and section 255.
149. The Commission proposes that
manufacturers and service providers
comply with the requirements of section
716 either by building accessibility
features into their equipment or service
or by relying on third party applications
or other accessibility solutions. The
Commission also proposes that if it is
not achievable for manufacturers and
service providers to make their products
accessible to people with disabilities,
then they must make their products
compatible with specialized devices
commonly used by people with
disabilities.
150. Furthermore, the Commission
proposes that manufacturers and service
providers consider performance
objectives at the design stage as early
and consistently as possible and
implement such evaluation to the extent
that it is achievable. The Commission
proposes to incorporate into its
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performance objectives the outcomeoriented definitions of ‘‘accessible,’’
‘‘compatibility,’’ and ‘‘usable’’ contained
in its rules regarding the accessibility of
telecommunications services and
equipment. It seeks comment on
whether it should adopt more specific
performance objectives and the
procedures and timelines that it should
use to develop these objectives.
151. The Commission also proposes to
issue prospective guidelines concerning
the new accessibility requirements. In
addition, the Commission seeks
comment on its proposal not to adopt
any technical standards as safe harbors
at this time.
152. The Commission proposes that
the accessibility requirements generally
should apply to a wide range of
manufacturers and service providers,
including applications developers and
providers of applications or services
downloaded and run by users over
service providers’ networks. It proposes,
however, to consider exemptions for
small entities and, if one or more such
exemptions is adopted, further proposes
to consider various criteria in setting
standards for such exemptions. The
Commission also proposes to consider
waivers, both individual and blanket,
for offerings which are designed for
multiple purposes but are designed
primarily for purposes other than using
advanced communications services.
153. The Commission proposes to
define ‘‘achievable’’ to mean ‘‘with
reasonable effort and expense.’’ In
making determination about what is
achievable under section 716, the
Commission proposes to consider the
following four factors and give them
equal weight:
• ‘‘The nature and cost of the steps
needed to meet the requirements of this
section with respect to the specific
equipment or service in question;’’
• ‘‘The technical and economic
impact on the operation of the
manufacturer or provider and on the
operation of the specific equipment or
service in question * * *; ’’
• ‘‘The type of operations of the
manufacturer or provider;’’ and
• ‘‘The extent to which the service
provider or manufacturer in question
offers accessible services or equipment
containing varying degrees of
functionality and features, and offered
at differing price points.’’
154. The Commission proposes
procedures to facilitate the filing of
complaints and proposes a 180-day
deadline to issue an order resolving
informal complaints concerning the
accessibility of products. In addition,
the Commission proposes that
manufacturers and providers subject to
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section 716 and section 255 maintain
records of the (1) efforts to consult with
people with disabilities; (2) accessibility
features of their products; and (3)
compatibility of their products with
specialized devices.
155. Moreover, in light of the range of
potential complaints that may be filed
against covered entities (including small
entities) under the CVAA and section
255, the NPRM seeks comment on how
we should effectively implement section
717’s recordkeeping requirements
without imposing excessive burden or
expense on covered entities or requiring
multiple submissions of the same
records to the Commission. The NPRM
seeks input on what constitutes a
‘‘reasonable time period’’ during which
covered entities will be required to
maintain these records.
156. The NPRM also recognizes the
variety of business models and
operations of entities covered under its
proposed rules and, therefore, proposes
that the Commission not mandate any
one form in which records must be kept
in order to comply with section 717.
The NPRM, however, seeks comment on
whether there is any reason for the
Commission to mandate a standard form
of recordkeeping to comply with section
717(a)(5) or to require covered entities
to submit publicly available records or
to re-submit records that the
Commission already has received
through a separate submission. Finally,
given that the statute provides that these
mandatory recordkeeping requirements
do not take effect until one year after the
effective date of regulations
promulgated by the Commission
pursuant to section 716(e), the NPRM
seeks input regarding whether, and if so,
in what fashion, the Commission should
address this transition period,
particularly for the purposes of
enforcement.
B. Legal Basis
157. The legal basis for any action that
may be taken pursuant to the NPRM is
contained in sections 1–4, 255, 303(r),
403, 503, 716, 717, 718 of the
Communications Act of 1934, as
Amended, 47 U.S.C. 151–154, 255,
303(r), 403, 503, 617, 618, 619.
C. Description and Estimate of the
Number of Small Entities to Which the
Proposed Rules May Apply
158. The RFA directs agencies to
provide a description of, and where
feasible, an estimate of the number of
small entities that face possible
significant economic impact by the
adoption of proposed rules. The RFA
generally defines the term ‘‘small entity’’
as having the same meaning as the terms
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‘‘small business,’’ ‘‘small organization,’’
and ‘‘small governmental jurisdiction.’’
In addition, the term ‘‘small business’’
has the same meaning as the term ‘‘small
business concern’’ under the Small
Business Act. A ‘‘small business
concern’’ is one that: (1) Is
independently owned and operated; (2)
is not dominant in its field of operation;
and (3) satisfies any additional criteria
established by the SBA.
159. To assist the Commission in
analyzing the total number of small
entities potentially affected by the rules
proposed in the NPRM, we ask
commenters to estimate the number of
small entities that may be affected by
those rules. To assist in assessing the
nature and number of small entities that
face possible significant economic
impact by adoption of our proposed
rules, we seek comment on the industry
categories below and our estimates of
the entities in each category that can,
under relevant SBA standards or
standards previously approved by the
SBA for small businesses, be classified
as small. Where a commenter proposes
an exemption from the requirements of
section 716, we also seek estimates from
that commenter on the number of small
entities in each category that would be
exempted from compliance with section
716 under the proposed exemption, the
percentage of market share for the
service or product that would be
exempted, and the economic impact, if
any, on those entities that are not
covered by the proposed exemption.
While the NPRM and this IRFA seek
comment on whether and how the
Commission should exempt small
entities from the requirements of section
716 for the purposes of building a
record on that issue, we will assume, for
the narrow purpose of including a
thorough regulatory impact analysis in
this IRFA, that no such exemptions will
be provided.
160. We divide the remainder of this
section into three parts. In the first two,
we identify those equipment
manufacturers and those service
providers that will be subject to our
proposed rules and the industry
categories within which they are
classified. Within each category where
possible, we estimate the total number
of establishments or firms and the
number of small entities (or the
percentage) among them that face
possible significant economic impact
under the rules proposed in the NPRM.
Where possible, we provide Census data
on the number of ‘‘firms’’ in a given
industrial category but, where that data
is not available, we provide data on the
number of ‘‘establishments.’’ The
number of ‘‘establishments’’ is a less
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helpful indicator of the number of
businesses in a given category than the
number of ‘‘firms,’’ because the latter
term takes into account the concept of
common ownership or control. Each
single physical location counts as an
‘‘establishment,’’ even though several
‘‘establishments’’ may be owned or
controlled by one ‘‘firm.’’ Thus, the data
given in a category for ‘‘establishments’’
may reflect an inflated number of
businesses in that category, including an
inflated number of small businesses. In
the third part, we identify additional
industry categories in which small
entities face possible significant
economic impact by the adoption of
those proposed rules. In the third part,
as in the first two parts, we estimate,
where possible, the number of
establishments or firms and the number
of small entities (or the percentages) that
would face such possible impact by
adoption of our proposed rules.
161. Small Businesses. Nationwide,
there are a total of approximately 29.6
million small businesses, according to
the SBA.
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1. Equipment Manufacturers
a. Manufacturers of Equipment To
Provide VoIP
162. Entities manufacturing
equipment used to provide
interconnected Voice Over Internet
Protocol (‘‘VoIP’’), non-interconnected
VoIP, or both are generally found in one
of two Census Bureau categories,
‘‘Electronic Computer Manufacturing’’ or
‘‘Telephone Apparatus Manufacturing.’’
While we recognize, as noted in the
NPRM, that the manufacturers of
equipment used to provide
interconnected VoIP will continue to be
regulated under section 255 rather than
under section 716, we include here an
analysis of the possible significant
economic impact of our proposed rules
on manufacturers of equipment used to
provide both interconnected and noninterconnected VoIP because it was not
possible to separate available data on
these two manufacturing categories for
VoIP equipment. In light of this
situation, our estimates below are in all
likelihood overstating the number of
small entities that manufacture
equipment used to provide
interconnected VoIP and which are
subject to our proposed section 716
rules. However, in the absence of more
accurate data, we present these figures
to provide as thorough an analysis of the
impact on small entities as we can at
this time, with the understanding that
we will modify our analysis as more
accurate data becomes available in this
proceeding.
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163. Electronic Computer
Manufacturing. The Census Bureau
defines this category to include ‘‘* * *
establishments primarily engaged in
manufacturing and/or assembling
electronic computers, such as
mainframes, personal computers,
workstations, laptops, and computer
servers. Computers can be analog,
digital, or hybrid * * * The
manufacture of computers includes the
assembly or integration of processors,
coprocessors, memory, storage, and
input/output devices into a userprogrammable final product.’’
164. In this category, the SBA has
deemed an electronic computer
manufacturing business to be small if it
has fewer than 1,000 employees. For
this category of manufacturers, Census
data for 2007, which supersede similar
data from the 2002 Census, show that
there were 421 such establishments that
operated that year. Of those 421
establishments, 384 (approximately
91%) had fewer than 100 employees
and only 37 had 100 employees or more,
thus, while we cannot provide a more
precise estimate, it is clear that a great
majority of these establishments would
be deemed small under the applicable
SBA size standard. Accordingly, the
majority of establishments in this
category can be considered small under
that standard. On this basis, we estimate
that approximately 91% or more of the
manufacturers of equipment used to
provide VoIP in this category are small
and, thus, face possible significant
economic impact from adoption of the
rules proposed in the NPRM.
165. Telephone Apparatus
Manufacturing. The Census Bureau
defines this category to comprise ‘‘* * *
establishments primarily engaged in
manufacturing wire telephone and data
communications equipment. These
products may be standalone or boardlevel components of a larger system.
Examples of products made by these
establishments are central office
switching equipment, cordless
telephones (except cellular), PBX
equipment, telephones, telephone
answering machines, LAN modems,
multi-user modems, and other data
communications equipment, such as
bridges, routers, and gateways.’’
166. In this category, the SBA has
deemed a telephone apparatus
manufacturing business to be small if it
has fewer than 1,000 employees. For
this category of manufacturers, Census
data for 2007, which supersede similar
data from the 2002 Census, show that
there were 398 such establishments that
operated that year. Of those 398
establishments, 393 (approximately
99%) had fewer than 1,000 employees
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and, thus, would be deemed small
under the applicable SBA size standard.
Accordingly, the majority of
establishments in this category can be
considered small under that standard.
On this basis, the Commission
continues to estimate that
approximately 99% or more of the
manufacturers of equipment used to
provide VoIP in this category are small
and, thus, face possible significant
economic impact from adoption of the
rules proposed in the NPRM.
b. Manufacturers of Equipment To
Provide Electronic Messaging
167. Entities that manufacture
equipment (other than software) used to
provide electronic messaging services
are generally found in one of three
Census Bureau categories: ‘‘Radio and
Television Broadcasting and Wireless
Communications Equipment
Manufacturing,’’ ‘‘Electronic Computer
Manufacturing,’’ or ‘‘Telephone
Apparatus Manufacturing.’’
168. Radio and Television
Broadcasting and Wireless
Communications Equipment
Manufacturing. The Census Bureau
defines this category as follows: ‘‘This
industry comprises establishments
primarily engaged in manufacturing
radio and television broadcast and
wireless communications equipment.
Examples of products made by these
establishments are: ‘‘transmitting and
receiving antennas, cable television
equipment, GPS equipment, pagers,
cellular phones, mobile
communications equipment, and radio
and television studio and broadcasting
equipment.’’
169. In this category, the SBA has
deemed a business manufacturing radio
and television broadcasting equipment,
wireless communications equipment, or
both, to be small if it has fewer than 750
employees. For this category of
manufacturers, Census data for 2007,
which supersede similar data from the
2002 Census, show that there were 398
such establishments that operated that
year. Of those 398 establishments, 393
(approximately 99%) had fewer than
1,000 employees and 912
(approximately 97%) had fewer than
500 employees. Between these two
figures, the Commission estimates that
about 915 establishments
(approximately 97%) had fewer than
750 employees and, thus, would be
considered small under the applicable
SBA size standard. Accordingly, the
majority of establishments in this
category can be considered small under
that standard. On this basis,
Commission estimates that
approximately 97% or more of the
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manufacturers of equipment used to
provide electronic messaging services in
this category are small and, thus, face
possible significant economic impact
from adoption of the rules proposed in
the NPRM.
170. Electronic Computer
Manufacturing. The Census Bureau
defines this category, as noted above, to
include ‘‘* * * establishments primarily
engaged in manufacturing and/or
assembling electronic computers, such
as mainframes, personal computers,
workstations, laptops, and computer
servers. Computers can be analog,
digital, or hybrid * * * The
manufacture of computers includes the
assembly or integration of processors,
coprocessors, memory, storage, and
input/output devices into a userprogrammable final product.’’
171. In this category, as noted above,
the SBA has deemed an electronic
computer manufacturing business to be
small if it has fewer than 1,000
employees. For this category of
manufacturers, Census data for 2007,
which supersede similar data from the
2002 Census, show that there were 421
such establishments that operated that
year. Of those 421 establishments, 384
(approximately 91%) had fewer than
100 employees and 37 had 100
employees or more, thus, while we
cannot provide a more precise estimate,
it is clear that a great majority of these
establishments would be deemed small
under the applicable SBA size standard.
Accordingly, the majority of
establishments in this category can be
considered small under that standard.
On this basis, we estimate that
approximately 91% or more of the
manufacturers of equipment used to
provide electronic messaging services in
this category are small and, thus, face
possible significant economic impact
from adoption of the rules proposed in
the NPRM.
172. Telephone Apparatus
Manufacturing. The Census Bureau, as
noted above, defines this category to
comprise ‘‘* * * establishments
primarily engaged in manufacturing
wire telephone and data
communications equipment. These
products may be standalone or boardlevel components of a larger system.
Examples of products made by these
establishments are central office
switching equipment, cordless
telephones (except cellular), PBX
equipment, telephones, telephone
answering machines, LAN modems,
multi-user modems, and other data
communications equipment, such as
bridges, routers, and gateways.’’
173. In this category, as noted above,
the SBA has deemed a telephone
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apparatus manufacturing business to be
small if it has fewer than 1,000
employees. For this category of
manufacturers, Census data for 2007,
which supersede similar data from the
2002 Census, show that there were 398
such establishments that operated that
year. Of those 398 establishments, 393
(approximately 99%) had fewer than
1,000 employees and, thus, would be
deemed small under the applicable SBA
size standard. Accordingly, the majority
of establishments in this category can be
considered small under that standard.
On this basis, the Commission estimates
that approximately 99% or more of the
manufacturers of equipment used to
provide electronic messaging services in
this category are small and, thus, face
possible significant economic impact
from adoption of the rules proposed in
the NPRM.
c. Manufacturers of Equipment To
Provide Interoperable Video
Conferencing Services
174. Entities that manufacture
equipment used to provide
interoperable and other video
conferencing services are generally
found in the Census Bureau category:
‘‘Other Communications Equipment
Manufacturing.’’ The Census Bureau
defines this category to include: ‘‘* * *
establishments primarily engaged in
manufacturing communications
equipment (except telephone apparatus,
and radio and television broadcast, and
wireless communications equipment).’’
175. Other Communications
Equipment Manufacturing. In this
category, the SBA has deemed a
business manufacturing other
communications equipment to be small
if it has fewer than 750 employees. For
this category of manufacturers, Census
data for 2007, which supersede similar
data from the 2002 Census, show that
there were 452 such establishments that
operated that year. Of those 452
establishments, all 452 (100%) had
fewer than 1,000 employees and 448 of
those 452 (approximately 99%) had
fewer than 500 employees. Between
these two figures, the Commission
estimates that about 450 establishments
(approximately 99.6%) had fewer than
750 employees and, thus, would be
considered small under the applicable
SBA size standard. Accordingly, the
majority of establishments in this
category can be considered small under
that standard. On this basis,
Commission estimates that
approximately 99.6% or more of the
manufacturers of equipment used to
provide interoperable and other video
conferencing services are small and,
thus, face possible significant economic
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impact from adoption of the rules
proposed in the NPRM.
d. Manufacturers of Software
176. Entities that publish software
used to provide interconnected VoIP,
non-interconnected VoIP, electronic
messaging services, or interoperable
video conferencing services are found in
the Census Bureau category ‘‘Software
Publishers.’’
177. Software Publishers. The Census
Bureau defines this category to include
‘‘* * * establishments primarily
engaged in computer software
publishing or publishing and
reproduction. Establishments in this
industry carry out operations necessary
for producing and distributing computer
software, such as designing, providing
documentation, assisting in installation,
and providing support services to
software purchasers. These
establishments may design, develop,
and publish, or publish only.’’
178. In this category, the SBA has
deemed a publisher of software (or
manufacturer of software under the
CVAA) to be small if it has $25 million
or less in average annual receipts. For
this category of manufacturers, Census
data for 2007, which supersede similar
data from the 2002 Census, show that
there were 5,313 such firms that
operated that year. Of those 5,313 firms,
4,956 (approximately 93%) had $25
million or less in average annual
receipts and, thus, would be deemed
small under the applicable SBA size
standard. Accordingly, the majority of
establishments in this category can be
considered small under that standard.
On this basis, Commission estimates
that approximately 93% or more of the
manufacturers of software used to
provide interconnected VoIP, noninterconnected VoIP, electronic
messaging services, and interoperable
video conferencing services in this
category are small and, thus, face
possible significant economic impact
from adoption of the rules proposed in
the NPRM.
2. Service Providers
a. Providers of VoIP
179. Entities that provide
interconnected or non-interconnected
VoIP or both are generally found in one
of two Census Bureau categories, ‘‘Wired
Telecommunications Carriers’’ or ‘‘All
Other Telecommunications.’’
180. Wired Telecommunications
Carriers. The Census Bureau defines
this category as follows: ‘‘This industry
comprises establishments primarily
engaged in operating and/or providing
access to transmission facilities and
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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. Establishments in this
industry use the wired
telecommunications network facilities
that they operate to provide a variety of
services, such as wired telephony
services, including VoIP services; wired
(cable) audio and video programming
distribution; and wired broadband
Internet services. By exception,
establishments providing satellite
television distribution services using
facilities and infrastructure that they
operate are included in this industry.’’
181. In this category, the SBA has
deemed a wired telecommunications
carrier to be small if it has fewer than
1,500 employees. For this category of
carriers, Census data for 2007, which
supersede similar data from the 2002
Census, shows 3,188 firms in this
category. Of these 3,188 firms, only 44
(approximately 1%) had 1,000 or more
employees. While we could not find
precise Census data on the number of
firms in the group with fewer than 1,500
employees, it is clear that at least the
3,188 firms with fewer than 1,000
employees would be in that group.
Thus, at least 3,144 of these 3,188 firms
(approximately 99%) had fewer than
1,500 employees. Accordingly, the
Commission estimates that at least 3,144
(approximately 99%) had fewer than
1,500 employees and thus, would be
considered small under the applicable
SBA size standard. On this basis, the
Commission estimates that
approximately 99% or more of the
providers of interconnected VoIP, noninterconnected VoIP, or both in this
category are small and, thus, face
possible significant economic impact
from adoption of the rules proposed in
the NPRM. Our estimates of the number
of providers on non-interconnected
VoIP (and the number of small entities
within that group) are in all likelihood
overstated because we could not draw
in the data a distinction between such
providers and those who provide
interconnected VoIP. However, in the
absence of more accurate data, we
present these figures to provide as
thorough an analysis of the impact on
small entities as we can at this time,
with the understanding that we will
modify our analysis as more accurate
data becomes available in this
proceeding.
182. All Other Telecommunications.
Under the 2007 U.S. Census definition
of firms included in the category ‘‘All
Other Telecommunications (NAICS
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Code 517919)’’ comprises
‘‘establishments primarily engaged in
providing specialized
telecommunications services, such as
satellite tracking, communications
telemetry, and radar station operation.
This industry also includes
establishments primarily engaged in
providing satellite terminal stations and
associated facilities connected with one
or more terrestrial systems and capable
of transmitting telecommunications to,
and receiving telecommunications from,
satellite systems. Establishments
providing Internet services or voice over
Internet protocol (VoIP) services via
client-supplied telecommunications
connections are also included in this
industry.’’
183. In this category, the SBA has
deemed a provider of ‘‘all other
telecommunications’’ services to be
small if it has $25 million or less in
average annual receipts. For this
category of service providers, Census
data for 2007, which supersede similar
data from the 2002 Census, show that
there were 2,383 such firms that
operated that year. Of those 2,383 firms,
2,346 (approximately 98%) had $25
million or less in average annual
receipts and, thus, would be deemed
small under the applicable SBA size
standard. Accordingly, the majority of
establishments in this category can be
considered small under that standard.
On this basis, Commission estimates
that approximately 98% or more of the
providers of interconnected VoIP, noninterconnected VoIP, or both in this
category are small and, thus, face
possible significant economic impact
from adoption of the rules proposed in
the NPRM. As stated above, our
estimates of the number of providers of
non-interconnected VoIP (and the
number of small entities within that
group) are in all likelihood overstated
because we could not draw in the data
a distinction between such providers
and those who provide interconnected
VoIP. However, in the absence of more
accurate data, we present these figures
to provide as thorough an analysis of the
impact on small entities as we can at
this time, with the understanding that
we will modify our analysis as more
accurate data becomes available in this
proceeding.
b. Providers of Electronic Messaging
Services
184. Entities that provide electronic
messaging services are generally found
in one of the following Census Bureau
categories, ‘‘Wireless
Telecommunications Carriers (except
Satellites),’’ ‘‘Wired
Telecommunications,’’ or ‘‘Internet
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Publishing and Broadcasting and Web
Search Portals.’’
185. Wireless Telecommunications
Carriers (except Satellites). The Census
Bureau defines this category to include
‘‘* * * establishments engaged in
operating and maintaining switching
and transmission facilities to provide
communications via the airwaves.
Establishments in this industry have
spectrum licenses and provide services
using that spectrum, such as cellular
phone services, paging services,
wireless Internet access, and wireless
video services.’’
186. In this category, the SBA has
deemed a wireless telecommunications
carrier to be small if it has fewer than
1,500 employees. For this category of
carriers, Census data for 2007, which
supersede similar data from the 2002
Census, shows 1,383 firms in this
category. Of these 1,383 firms, only 15
(approximately 1%) had 1,000 or more
employees. While there is no precise
Census data on the number of firms in
the group with fewer than 1,500
employees, it is clear that at least the
1,368 firms with fewer than 1,000
employees would be found in that
group. Thus, at least 1,368 of these
1,383 firms (approximately 99%) had
fewer than 1,500 employees.
Accordingly, the Commission estimates
that at least 1,368 (approximately 99%)
had fewer than 1,500 employees and,
thus, would be considered small under
the applicable SBA size standard. On
this basis, Commission estimates that
approximately 99% or more of the
providers of electronic messaging
services in this category are small and,
thus, face possible significant economic
impact from adoption of the rules
proposed in the NPRM.
187. Wired Telecommunications
Carriers. For the 2007 U.S. Census
definition of firms included in the
category, ‘‘Wired Telecommunications
Carriers (NAICS Code 517110),’’ see
paragraph 35 above.
188. In this category, the SBA has
deemed a wired telecommunications
carrier to be small if it has fewer than
1,500 employees. For this category of
carriers, Census data for 2007, which
supersede similar data from the 2002
Census, shows 3,188 firms in this
category. Of these 3,188 firms, only 44
(approximately 1%) had 1,000 or more
employees. While we could not find
precise Census data on the number of
firms in the group with fewer than 1,500
employees, it is clear that at least the
3,188 firms with fewer than 1,000
employees would be in that group.
Thus, at least 3,144 of these 3,188 firms
(approximately 99%) had fewer than
1,500 employees. Accordingly, the
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Commission estimates that of these
3,188 at least 3,144 (approximately
99%) had fewer than 1,500 employees
and, thus, would be considered small
under the applicable SBA size standard.
On this basis, the Commission estimates
that approximately 99% or more of the
providers of electronic messaging
services in this category are small and,
thus, face possible significant economic
impact from adoption of the rules
proposed in the NPRM.
189. Internet Publishing and
Broadcasting and Web Search Portals.
The Census Bureau defines this category
to include ‘‘* * * establishments
primarily engaged in 1) publishing and/
or broadcasting content on the Internet
exclusively or 2) operating Web sites
that use a search engine to generate and
maintain extensive databases of Internet
addresses and content in an easily
searchable format (and known as Web
search portals). The publishing and
broadcasting establishments in this
industry do not provide traditional
(non-Internet) versions of the content
that they publish or broadcast. They
provide textual, audio, and/or video
content of general or specific interest on
the Internet exclusively. Establishments
known as Web search portals often
provide additional Internet services,
such as e-mail, connections to other
Web sites, auctions, news, and other
limited content, and serve as a home
base for Internet users.’’
190. In this category, the SBA has
deemed an Internet publisher or Internet
broadcaster or the provider of a Web
search portal on the Internet to be small
if it has fewer than 500 employees. For
this category of manufacturers, Census
data for 2007, which supersede similar
data from the 2002 Census, show that
there were 2,705 such firms that
operated that year. Of those 2,705 firms,
2,682 (approximately 99%) had fewer
than 500 employees and, thus, would be
deemed small under the applicable SBA
size standard. Accordingly, the majority
of establishments in this category can be
considered small under that standard.
On this basis, Commission estimates
that approximately 99% or more of the
providers of electronic messaging
services in this category are small and,
thus, face possible significant economic
impact from adoption of the rules
proposed in the NPRM.
c. Providers of Interoperable Video
Conferencing Services
191. Entities that provide
interoperable video conferencing
services are found in the Census Bureau
Category ‘‘All Other
Telecommunications.’’
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192. All Other Telecommunications.
For the 2007 U.S. Census definition of
firms included in the category ‘‘All
Other Telecommunications (NAICS
Code 517919),’’ see paragraph 37 above.
193. In this category, the SBA has
deemed a provider of ‘‘all other
telecommunications’’ services to be
small if it has $25 million or less in
average annual receipts. For this
category of service providers, Census
data for 2007, which supersede similar
data from the 2002 Census, show that
there were 2,383 such firms that
operated that year. Of those 2,383 firms,
2,346 (approximately 98%) had $25
million or less in average annual
receipts and, thus, would be deemed
small under the applicable SBA size
standard. Accordingly, the majority of
establishments in this category can be
considered small under that standard.
On this basis, Commission estimates
that approximately 98% or more of the
providers of interoperable video
conferencing services are small and,
thus, face possible significant economic
impact from adoption of the rules
proposed in the NPRM.
3. Additional Industry Categories
a. Certain Wireless Carriers and Service
Providers
194. Cellular Licensees. The SBA has
developed a small business size
standard for small businesses in the
category ‘‘Wireless Telecommunications
Carriers (except satellite).’’ Under that
SBA category, a business is small if it
has 1,500 or fewer employees. The
census category of ‘‘Cellular and Other
Wireless Telecommunications’’ is no
longer used and has been superseded by
the larger category ‘‘Wireless
Telecommunications Carriers (except
satellite).’’ The Census Bureau defines
this larger category to include ‘‘* * *
establishments engaged in operating and
maintaining switching and transmission
facilities to provide communications via
the airwaves. Establishments in this
industry have spectrum licenses and
provide services using that spectrum,
such as cellular phone services, paging
services, wireless Internet access, and
wireless video services.’’
195. In this category, the SBA has
deemed a wireless telecommunications
carrier to be small if it has fewer than
1,500 employees. For this category of
carriers, Census data for 2007, which
supersede similar data from the 2002
Census, shows 1,383 firms in this
category. Of these 1,383 firms, only 15
(approximately 1%) had 1,000 or more
employees. While there is no precise
Census data on the number of firms in
the group with fewer than 1,500
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employees, it is clear that at least the
1,368 firms with fewer than 1,000
employees would be found in that
group. Thus, at least 1,368 of these
1,383 firms (approximately 99%) had
fewer than 1,500 employees.
Accordingly, the Commission estimates
that at least 1,368 (approximately 99%)
had fewer than 1,500 employees and,
thus, would be considered small under
the applicable SBA size standard. On
this basis, Commission estimates that
approximately 99% or more of the
providers of electronic messaging
services in this category are small and,
thus, face possible significant economic
impact from adoption of the rules
proposed in the NPRM.
196. Specialized Mobile Radio. The
Commission awards ‘‘small entity’’
bidding credits in auctions for
Specialized Mobile Radio (SMR)
geographic area licenses in the 800 MHz
and 900 MHz bands to firms that had
revenues of no more than $15 million in
each of the three previous calendar
years. The Commission awards ‘‘very
small entity’’ bidding credits to firms
that had revenues of no more than $3
million in each of the three previous
calendar years. The SBA has approved
these small business size standards for
the 900 MHz Service. The Commission
has held auctions for geographic area
licenses in the 800 MHz and 900 MHz
bands. The 900 MHz SMR auction began
on December 5, 1995, and closed on
April 15, 1996. Sixty bidders claiming
that they qualified as small businesses
under the $15 million size standard won
263 geographic area licenses in the 900
MHz SMR band. The 800 MHz SMR
auction for the upper 200 channels
began on October 28, 1997, and was
completed on December 8, 1997. Ten
bidders claiming that they qualified as
small businesses under the $15 million
size standard won 38 geographic area
licenses for the upper 200 channels in
the 800 MHz SMR band. A second
auction for the 800 MHz band was held
on January 10, 2002 and closed on
January 17, 2002 and included 23
licenses. One bidder claiming small
business status won five licenses.
197. The auction of the 1,053 800
MHz SMR geographic area licenses for
the General Category channels began on
August 16, 2000, and was completed on
September 1, 2000. Eleven bidders that
won 108 geographic area licenses for the
General Category channels in the 800
MHz SMR band qualified as small
businesses under the $15 million size
standard. In an auction completed on
December 5, 2000, a total of 2,800
Economic Area licenses in the lower 80
channels of the 800 MHz SMR service
were sold. Of the 22 winning bidders,
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19 claimed ‘‘small business’’ status and
won 129 licenses. Thus, combining all
three auctions, 40 winning bidders for
geographic licenses in the 800 MHz
SMR band claimed status as small
business.
198. In addition, there are numerous
incumbent site-by-site SMR licensees
and licensees with extended
implementation authorizations in the
800 and 900 MHz bands. The
Commission does not know how many
firms provide 800 MHz or 900 MHz
geographic area SMR services pursuant
to extended implementation
authorizations, nor how many of these
providers have annual revenues of no
more than $15 million. One firm has
over $15 million in revenues. In
addition, we do not know how many of
these firms have 1,500 or fewer
employees. The Commission assumes,
for purposes of this analysis, that all of
the remaining existing extended
implementation authorizations are held
by small entities.
199. Advanced Wireless Services. In
2008, the Commission conducted the
auction of Advanced Wireless Services
(‘‘AWS’’) licenses. This auction, which
was designated as Auction 78, offered
35 licenses in the AWS 1710–1755 MHz
and 2110–2155 MHz bands (‘‘AWS–1’’).
The AWS–1 licenses were licenses for
which there were no winning bids in
Auction 66. That same year, the
Commission completed Auction 78. A
bidder with attributed average annual
gross revenues that exceeded $15
million and did not exceed $40 million
for the preceding three years (‘‘small
business’’) received a 15 percent
discount on its winning bid. A bidder
with attributed average annual gross
revenues that did not exceed $15
million for the preceding three years
(‘‘very small business’’) received a 25
percent discount on its winning bid. A
bidder that had a combined total assets
of less than $500 million and combined
gross revenues of less than $125 million
in each of the last two years qualified
for entrepreneur status. Four winning
bidders that identified themselves as
very small businesses won 17 licenses.
Three of the winning bidders that
identified themselves as small business
won five licenses. Additionally, one
other winning bidder that qualified for
entrepreneur status won 2 licenses.
200. 700 MHz Band Commercial
Licensees. There is 80 megahertz of nonGuard Band spectrum in the 700 MHz
Band that is designated for commercial
use: 698–757, 758–763, 776–787, and
788–793 MHz Bands. With one
exception, the Commission adopted
criteria for defining two groups of small
businesses for purposes of determining
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their eligibility for bidding credits at
auction. These two categories are:
(1) ‘‘Small business,’’ which is defined as
an entity with attributed average annual
gross revenues that exceed $15 million
and do not exceed $40 million for the
preceding three years; and (2) ‘‘very
small business,’’ which is defined as an
entity with attributed average annual
gross revenues that do not exceed $15
million for the preceding three years. In
Block C of the Lower 700 MHz Band
(710–716 MHz and 740–746 MHz),
which was licensed on the basis of 734
Cellular Market Areas, the Commission
adopted a third criterion for
determining eligibility for bidding
credits: An ‘‘entrepreneur,’’ which is
defined as an entity that, together with
its affiliates and controlling principals,
has average gross revenues that are not
more than $3 million for the preceding
three years. The SBA has approved
these small size standards.
201. An auction of 740 licenses for
Blocks C (710–716 MHz and 740–746
MHz) and D (716–722 MHz) of the
Lower 700 MHz Band commenced on
August 27, 2002, and closed on
September 18, 2002. Of the 740 licenses
available for auction, 484 licenses were
sold to 102 winning bidders. Seventytwo of the winning bidders claimed
small business, very small business, or
entrepreneur status and won a total of
329 licenses. A second auction
commenced on May 28, 2003, and
closed on June 13, 2003, and included
256 licenses: Five EAG licenses and 251
CMA licenses. Seventeen winning
bidders claimed small or very small
business status and won 60 licenses,
and nine winning bidders claimed
entrepreneur status and won 154
licenses.
202. The remaining 62 megahertz of
commercial spectrum was auctioned on
January 24 through March 18, 2008. As
explained above, bidding credits for all
of these licenses were available to
‘‘small businesses’’ and ‘‘very small
businesses.’’ Auction 73 concluded with
1,090 provisionally winning bids
covering 1,091 licenses and totaling
$19,592,420,000. The provisionally
winning bids for the A, B, C, and E
Block licenses exceeded the aggregate
reserve prices for those blocks. The
provisionally winning bid for the D
Block license, however, did not meet
the applicable reserve price and thus
did not become a winning bid.
Approximately 55 small businesses had
winning bids. Currently, the 10
remaining megahertz associated with
the D block have not yet been assigned.
203. Offshore Radiotelephone Service.
This service operates on several UHF
television broadcast channels that are
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not used for television broadcasting in
the coastal areas of states bordering the
Gulf of Mexico. There are presently
approximately 55 licensees in this
service. The Commission is unable to
estimate at this time the number of
licensees that would qualify as small
under the SBA’s small business size
standard for the category of Wireless
Telecommunications Carriers (except
Satellite). Under that SBA small
business size standard, a business is
small if it has 1,500 or fewer employees.
Census data for 2007, which supersede
data from the 2002 Census, show that
there were 1,383 firms that operated that
year. Of those 1,383, 1,368 had fewer
than 100 employees, and 15 firms had
more than 100 employees. Thus under
this category and the associated small
business size standard, the majority of
firms can be considered small.
204. Government Transfer Bands. The
Commission adopted small business
size standards for the unpaired 1390–
1392 MHz, 1670–1675 MHz, and the
paired 1392–1395 MHz and 1432–1435
MHz bands. Specifically, with respect to
these bands, the Commission defined an
entity with average annual gross
revenues for the three preceding years
not exceeding $40 million as a ‘‘small
business,’’ and an entity with average
annual gross revenues for the three
preceding years not exceeding $15
million as a ‘‘very small business.’’ SBA
has approved these small business size
standards for the aforementioned bands.
Correspondingly, the Commission
adopted a bidding credit of 15 percent
for ‘‘small businesses’’ and a bidding
credit of 25 percent for ‘‘very small
businesses.’’ This bidding credit
structure was found to have been
consistent with the Commission’s
schedule of bidding credits, which may
be found at § 1.2110(f)(2) of the
Commission’s rules. The Commission
found that these two definitions will
provide a variety of businesses seeking
to provide a variety of services with
opportunities to participate in the
auction of licenses for this spectrum and
will afford such licensees, who may
have varying capital costs, substantial
flexibility for the provision of services.
The Commission noted that it had long
recognized that bidding preferences for
qualifying bidders provide such bidders
with an opportunity to compete
successfully against large, well-financed
entities. The Commission also noted
that it had found that the use of tiered
or graduated small business definitions
is useful in furthering its mandate under
section 309(j) of the Act to promote
opportunities for and disseminate
licenses to a wide variety of applicants.
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An auction for one license in the 1670–
1674 MHz band commenced on April
30, 2003 and closed the same day. One
license was awarded. The winning
bidder was not a small entity.
b. Certain Equipment Manufacturers
and Stores
205. Part 15 Handset Manufacturers.
Manufacturers of unlicensed wireless
handsets may also become subject to
requirements in this proceeding for their
handsets used to provide VoIP
applications. The Commission has not
developed a definition of small entities
applicable to unlicensed
communications handset
manufacturers. Therefore, we will
utilize the SBA definition applicable to
Radio and Television Broadcasting and
Wireless Communications Equipment
Manufacturing. The Census Bureau
defines this category as follows: ‘‘This
industry comprises establishments
primarily engaged in manufacturing
radio and television broadcast and
wireless communications equipment.
Examples of products made by these
establishments are: Transmitting and
receiving antennas, cable television
equipment, GPS equipment, pagers,
cellular phones, mobile
communications equipment, and radio
and television studio and broadcasting
equipment.’’ The SBA has developed a
small business size standard for Radio
and Television Broadcasting and
Wireless Communications Equipment
Manufacturing, which is: All such firms
having 750 or fewer employees.
According to Census Bureau data for
2002, there were a total of 1,041
establishments in this category that
operated for the entire year. Of this
total, 1,010 had employment of under
500, and an additional 13 had
employment of 500 to 999. Thus, under
this size standard, the majority of firms
can be considered small.
206. Radio and Television
Broadcasting and Wireless
Communications Equipment
Manufacturing. The Census Bureau
defines this category as follows: ‘‘This
industry comprises establishments
primarily engaged in manufacturing
radio and television broadcast and
wireless communications equipment.
Examples of products made by these
establishments are: Transmitting and
receiving antennas, cable television
equipment, GPS equipment, pagers,
cellular phones, mobile
communications equipment, and radio
and television studio and broadcasting
equipment.’’ The SBA has developed a
small business size standard for firms in
this category, which is: all such firms
having 750 or fewer employees.
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According to Census Bureau data for
2007, there were a total of 919 firms in
this category that operated for the entire
year. Of this total, 777 had less than 100
employees, and an additional 148 had
over 100 employees. Thus, while we can
provide a more precise estimate, under
this size standard, the large majority of
these firms can be considered small.
207. Radio, Television, and Other
Electronics Stores. The Census Bureau
defines this economic census category
as follows: ‘‘This U.S. industry
comprises: (1) Establishments known as
consumer electronics stores primarily
engaged in retailing a general line of
new consumer-type electronic products;
(2) establishments specializing in
retailing a single line of consumer-type
electronic products (except computers);
or (3) establishments primarily engaged
in retailing these new electronic
products in combination with repair
services.’’ The SBA has developed a
small business size standard for Radio,
Television, and Other Electronics
Stores, which is: All such firms having
$9 million or less in annual receipts.
According to Census Bureau data for
2007, there were 18,291 firms in this
category that operated for the entire
year. Of this total, 17,369 firms had
annual sales of under $5 million, and
533 firms had sales of $5 million or
more but less than $10 million. Thus,
the majority of firms in this category can
be considered small.
c. Wireline Carriers and Service
Providers
208. Incumbent Local Exchange
Carriers (Incumbent 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. Census Bureau data
for 2007, which now supersede data
from the 2002 Census, show that there
were 3,188 firms in this category that
operated for the entire year. Of this
total, 3,144 had employment of 999 or
fewer, and 44 firms had employment of
1000 or more. According to Commission
data, 1,307 carriers reported that they
were incumbent local exchange service
providers. Of these 1,307 carriers, an
estimated 1,006 have 1,500 or fewer
employees and 301 have more than
1,500 employees. Consequently, the
Commission estimates that most
providers of local exchange service are
small entities that may be affected by
the rules proposed in the NPRM. Thus
under this category, the majority of
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these incumbent local exchange service
providers can be considered small.
209. Competitive Local Exchange
Carriers (Competitive LECs),
Competitive Access Providers (CAPs),
Shared-Tenant Service Providers, and
Other Local Service Providers. Neither
the Commission nor the SBA has
developed a small business size
standard specifically for these service
providers. The appropriate size standard
under SBA rules is for the category
Wired Telecommunications Carriers.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees. Census Bureau data for
2007, which now supersede data from
the 2002 Census, show that there were
3,188 firms in this category that
operated for the entire year. Of this
total, 3,144 had employment of 999 or
fewer, and 44 firms had had
employment of 1,000 employees or
more. Thus under this category and the
associated small business size standard,
the majority of these Competitive LECs,
CAPs, Shared-Tenant Service Providers,
and Other Local Service Providers can
be considered small entities. According
to Commission data, 1,442 carriers
reported that they were engaged in the
provision of either competitive local
exchange services or competitive access
provider services. Of these 1,442
carriers, an estimated 1,256 have 1,500
or fewer employees and 186 have more
than 1,500 employees. In addition, 17
carriers have reported that they are
Shared-Tenant Service Providers, and
all 17 are estimated to have 1,500 or
fewer employees. In addition, 72
carriers have reported that they are
Other Local Service Providers. Of the
72, seventy have 1,500 or fewer
employees and two have 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 that may be affected by rules
adopted pursuant to the NPRM.
210. Interexchange Carriers. Neither
the Commission nor the SBA has
developed a small business size
standard specifically for providers of
interexchange 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. Census Bureau data
for 2007, which now supersede data
from the 2002 Census, show that there
were 3,188 firms in this category that
operated for the entire year. Of this
total, 3,144 had employment of 999 or
fewer, and 44 firms had had
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employment of 1,000 employees or
more. Thus under this category and the
associated small business size standard,
the majority of these Interexchange
carriers can be considered small
entities. According to Commission data,
359 companies reported that their
primary telecommunications service
activity was the provision of
interexchange services. Of these 359
companies, an estimated 317 have 1,500
or fewer employees and 42 have more
than 1,500 employees. Consequently,
the Commission estimates that the
majority of interexchange service
providers are small entities that may be
affected by rules adopted pursuant to
the NPRM.
211. Operator Service Providers
(OSPs). Neither the Commission nor the
SBA has developed a small business
size standard specifically for operator
service providers. The appropriate size
standard under SBA rules is for the
category Wired Telecommunications
Carriers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees. Census Bureau data
for 2007, which now supersede data
from the 2002 Census, show that there
were 3,188 firms in this category that
operated for the entire year. Of this
total, 3,144 had employment of 999 or
fewer, and 44 firms had had
employment of 1,000 employees or
more. Thus under this category and the
associated small business size standard,
the majority of these Interexchange
carriers can be considered small
entities. According to Commission data,
33 carriers have reported that they are
engaged in the provision of operator
services. Of these, an estimated 31 have
1,500 or fewer employees and 2 have
more than 1,500 employees.
Consequently, the Commission
estimates that the majority of OSPs are
small entities that may be affected by
our proposed rules.
212. Local Resellers. The SBA has
developed a small business size
standard for the category of
Telecommunications Resellers. Under
that size standard, such a business is
small if it has 1,500 or fewer employees.
Census data for 2007 show that 1,523
firms provided resale services during
that year. Of that number, 1,522
operated with fewer than 1000
employees and one operated with more
than 1,000. Thus under this category
and the associated small business size
standard, the majority of these local
resellers can be considered small
entities. According to Commission data,
213 carriers have reported that they are
engaged in the provision of local resale
services. Of these, an estimated 211
have 1,500 or fewer employees and two
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have more than 1,500 employees.
Consequently, the Commission
estimates that the majority of local
resellers are small entities that may be
affected by rules adopted pursuant to
the Notice.
213. Toll Resellers. The SBA has
developed a small business size
standard for the category of
Telecommunications Resellers. Under
that size standard, such a business is
small if it has 1,500 or fewer employees.
Census data for 2007 show that 1,523
firms provided resale services during
that year. Of that number, 1,522
operated with fewer than 1000
employees and one operated with more
than 1,000. Thus under this category
and the associated small business size
standard, the majority of these resellers
can be considered small entities.
According to Commission data, 881
carriers have reported that they are
engaged in the provision of toll resale
services. Of these, an estimated 857
have 1,500 or fewer employees and 24
have more than 1,500 employees.
Consequently, the Commission
estimates that the majority of toll
resellers are small entities that may be
affected by our proposed rules.
214. Payphone Service Providers
(PSPs). Neither the Commission nor the
SBA has developed a small business
size standard specifically for payphone
services providers. The appropriate size
standard under SBA rules is for the
category Wired Telecommunications
Carriers. Under that size standard, such
a business is small if it has 1,500 or
fewer employees. Census Bureau data
for 2007, which now supersede data
from the 2002 Census, show that there
were 3,188 firms in this category that
operated for the entire year. Of this
total, 3,144 had employment of 999 or
fewer, and 44 firms had had
employment of 1,000 employees or
more. Thus under this category and the
associated small business size standard,
the majority of these PSPs can be
considered small entities. According to
Commission data, 657 carriers have
reported that they are engaged in the
provision of payphone services. Of
these, an estimated 653 have 1,500 or
fewer employees and four have more
than 1,500 employees. Consequently,
the Commission estimates that the
majority of payphone service providers
are small entities that may be affected
by our action.
215. Prepaid Calling Card Providers.
Neither the Commission nor the SBA
has developed a small business size
standard specifically for prepaid calling
card providers. The appropriate size
standard under SBA rules is for the
category Telecommunications Resellers.
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Under that size standard, such a
business is small if it has 1,500 or fewer
employees. Census data for 2007 show
that 1,523 firms provided resale services
during that year. Of that number, 1,522
operated with fewer than 1000
employees and one operated with more
than 1,000. Thus under this category
and the associated small business size
standard, the majority of these prepaid
calling card providers can be considered
small entities. According to Commission
data, 193 carriers have reported that
they are engaged in the provision of
prepaid calling cards. Of these, all 193
have 1,500 or fewer employees and
none have more than 1,500 employees.
Consequently, the Commission
estimates that the majority of prepaid
calling card providers are small entities
that may be affected by rules adopted
pursuant to the NPRM.
216. 800 and 800-Like Service
Subscribers. Neither the Commission
nor the SBA has developed a small
business size standard specifically for
800 and 800-like service (‘‘toll free’’)
subscribers. The appropriate size
standard under SBA rules is for the
category Telecommunications Resellers.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees. Census data for 2007 show
that 1,523 firms provided resale services
during that year. Of that number, 1,522
operated with fewer than 1000
employees and one operated with more
than 1,000. Thus under this category
and the associated small business size
standard, the majority of resellers in this
classification can be considered small
entities. To focus specifically on the
number of subscribers than on those
firms which make subscription service
available, the most reliable source of
information regarding the number of
these service subscribers appears to be
data the Commission collects on the
800, 888, 877, and 866 numbers in use.
According to our data for September
2009, the number of 800 numbers
assigned was 7,860,000; the number of
888 numbers assigned was 5,888,687;
the number of 877 numbers assigned
was 4,721,866; and the number of 866
numbers assigned was 7,867,736. The
Commission does not have data
specifying the number of these
subscribers that are not independently
owned and operated or have more than
1,500 employees, and thus are unable at
this time to estimate with greater
precision the number of toll free
subscribers that would qualify as small
businesses under the SBA size standard.
Consequently, the Commission
estimates that there are 7,860,000 or
fewer small entity 800 subscribers;
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5,888,687 or fewer small entity 888
subscribers; 4,721,866 or fewer small
entity 877 subscribers; and 7,867,736 or
fewer small entity 866 subscribers.
d. Wireless Carriers and Service
Providers
217. Below, for those services where
licenses are subject to auctions, the
Commission notes that, as a general
matter, the number of winning bidders
that qualify as small businesses at the
close of a given 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.
218. Wireless Telecommunications
Carriers (except Satellite). Since 2007,
the Census Bureau has placed wireless
firms within this new, broad, economic
census category. Prior to that time, such
firms were within the now-superseded
categories of ‘‘Paging’’ and ‘‘Cellular and
Other Wireless Telecommunications.’’
Under the present and prior categories,
the SBA has deemed a wireless business
to be small if it has 1,500 or fewer
employees. For the category of Wireless
Telecommunications Carriers (except
Satellite), Census data for 2007, which
supersede data from the 2002 Census,
show that there were 1,383 firms that
operated that year. Of those 1,383, 1,368
had fewer than 100 employees, and 15
firms had more than 100 employees.
Thus under this category and the
associated small business size standard,
the majority of firms can be considered
small. Similarly, according to
Commission data, 413 carriers reported
that they were engaged in the provision
of wireless telephony, including cellular
service, Personal Communications
Service (PCS), and Specialized Mobile
Radio (SMR) Telephony services. Of
these, an estimated 261 have 1,500 or
fewer employees and 152 have more
than 1,500 employees. Consequently,
the Commission estimates that
approximately half or more of these
firms can be considered small. Thus,
using available data, we estimate that
the majority of wireless firms can be
considered small.
219. Wireless Communications
Services. This service can be used for
fixed, mobile, radiolocation, and digital
audio broadcasting satellite uses. The
Commission defined ‘‘small business’’
for the wireless communications
services (WCS) auction as an entity with
average gross revenues of $40 million
for each of the three preceding years,
and a ‘‘very small business’’ as an entity
with average gross revenues of $15
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million for each of the three preceding
years. The SBA has approved these
definitions. The Commission auctioned
geographic area licenses in the WCS
service. In the auction, which
commenced on April 15, 1997 and
closed on April 25, 1997, seven bidders
won 31 licenses that qualified as very
small business entities, and one bidder
won one license that qualified as a small
business entity.
220. Common Carrier Paging. The
SBA considers paging to be a wireless
telecommunications service and
classifies it under the industry
classification Wireless
Telecommunications Carriers (except
satellite). Under that classification, the
applicable size standard is that a
business is small if it has 1,500 or fewer
employees. For the general category of
Wireless Telecommunications Carriers
(except Satellite), Census data for 2007,
which supersede data from the 2002
Census, show that there were 1,383
firms that operated that year. Of those
1,383, 1,368 had fewer than 100
employees, and 15 firms had more than
100 employees. Thus under this
category and the associated small
business size standard, the majority of
firms can be considered small. The 2007
census also contains data for the
specific category of ‘‘Paging’’ ‘‘that is
classified under the seven-number
NAICS code 5172101. According to
Commission data, 291 carriers have
reported that they are engaged in Paging
or Messaging Service. Of these, an
estimated 289 have 1,500 or fewer
employees, and 2 have more than 1,500
employees. Consequently, the
Commission estimates that the majority
of paging providers are small entities
that may be affected by our action. In
addition, in the 220 MHz Third Report
and Order, the Commission developed a
small business size standard for ‘‘small
businesses’’ and ‘‘very small businesses’’
for purposes of determining their
eligibility for special provisions such as
bidding credits and installment
payments. A ‘‘small business’’ is an
entity that, together with its affiliates
and controlling principals, has average
gross revenues not exceeding $15
million for the preceding three years.
Additionally, a ‘‘very small business’’ is
an entity that, together with its affiliates
and controlling principals, has average
gross revenues that are not more than $3
million for the preceding three years.
The SBA has approved these small
business size standards. An auction of
Metropolitan Economic Area licenses
commenced on February 24, 2000, and
closed on March 2, 2000. Of the 985
licenses auctioned, 440 were sold. Fifty-
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seven companies claiming small
business status won.
221. Wireless Telephony. Wireless
telephony includes cellular, personal
communications services, and
specialized mobile radio telephony
carriers. As noted, the SBA has
developed a small business size
standard for Wireless
Telecommunications Carriers (except
Satellite). Under the SBA small business
size standard, a business is small if it
has 1,500 or fewer employees. Census
data for 2007, which supersede data
from the 2002 Census, show that there
were 1,383 firms that operated that year.
Of those 1,383, 1,368 had fewer than
100 employees, and 15 firms had more
than 100 employees. Thus under this
category and the associated small
business size standard, the majority of
firms can be considered small.
According to Trends in Telephone
Service data, 434 carriers reported that
they were engaged in wireless
telephony. Of these, an estimated 222
have 1,500 or fewer employees and 212
have more than 1,500 employees.
Therefore, approximately half of these
entities can be considered small.
Similarly, according to Commission
data, 413 carriers reported that they
were engaged in the provision of
wireless telephony, including cellular
service, Personal Communications
Service (PCS), and Specialized Mobile
Radio (SMR) Telephony services. Of
these, an estimated 261 have 1,500 or
fewer employees and 152 have more
than 1,500 employees. Consequently,
the Commission estimates that
approximately half or more of these
firms can be considered small. Thus,
using available data, we estimate that
the majority of wireless firms can be
considered small.
222. Broadband Personal
Communications Service. The
broadband personal communications
services (PCS) spectrum is divided into
six frequency blocks designated A
through F, and the Commission has held
auctions for each block. The
Commission initially defined a ‘‘small
business’’ for C- and F-Block licenses as
an entity that has average gross revenues
of $40 million or less in the three
previous calendar years. For F-Block
licenses, an additional small business
size standard for ‘‘very small business’’
was added and is defined as an entity
that, together with its affiliates, has
average gross revenues of not more than
$15 million for the preceding three
calendar years. These small business
size standards, in the context of
broadband PCS auctions, have been
approved by the SBA. No small
businesses within the SBA-approved
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small business size standards bid
successfully for licenses in Blocks A
and B. There were 90 winning bidders
that claimed small business status in the
first two C-Block auctions. A total of 93
bidders that claimed small business
status won approximately 40 percent of
the 1,479 licenses in the first auction for
the D, E, and F Blocks. On April 15,
1999, the Commission completed the
reauction of 347 C-, D-, E-, and F-Block
licenses in Auction No. 22. Of the 57
winning bidders in that auction, 48
claimed small business status and won
277 licenses.
223. On January 26, 2001, the
Commission completed the auction of
422 C and F Block Broadband PCS
licenses in Auction No. 35. Of the 35
winning bidders in that auction, 29
claimed small business status.
Subsequent events concerning Auction
35, including judicial and agency
determinations, resulted in a total of 163
C and F Block licenses being available
for grant. On February 15, 2005, the
Commission completed an auction of
242 C-, D-, E-, and F-Block licenses in
Auction No. 58. Of the 24 winning
bidders in that auction, 16 claimed
small business status and won 156
licenses. On May 21, 2007, the
Commission completed an auction of 33
licenses in the A, C, and F Blocks in
Auction No. 71. Of the 12 winning
bidders in that auction, five claimed
small business status and won 18
licenses. On August 20, 2008, the
Commission completed the auction of
20 C-, D-, E-, and F-Block Broadband
PCS licenses in Auction No. 78. Of the
eight winning bidders for Broadband
PCS licenses in that auction, six claimed
small business status and won 14
licenses.
224. Narrowband Personal
Communications Services. To date, two
auctions of narrowband personal
communications services (PCS) licenses
have been conducted. For purposes of
the two auctions that have already been
held, ‘‘small businesses’’ were entities
with average gross revenues for the prior
three calendar years of $40 million or
less. Through these auctions, the
Commission has awarded a total of 41
licenses, out of which 11 were obtained
by small businesses. To ensure
meaningful participation of small
business entities in future auctions, the
Commission has adopted a two-tiered
small business size standard in the
Narrowband PCS Second Report and
Order. A ‘‘small business’’ is an entity
that, together with affiliates and
controlling interests, has average gross
revenues for the three preceding years of
not more than $40 million. A ‘‘very
small business’’ is an entity that,
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together with affiliates and controlling
interests, has average gross revenues for
the three preceding years of not more
than $15 million. The SBA has
approved these small business size
standards.
225. 220 MHz Radio Service—Phase I
Licensees. The 220 MHz service has
both Phase I and Phase II licenses. Phase
I licensing was conducted by lotteries in
1992 and 1993. There are approximately
1,515 such non-nationwide licensees
and four nationwide licensees currently
authorized to operate in the 220 MHz
band. The Commission has not
developed a small business size
standard for small entities specifically
applicable to such incumbent 220 MHz
Phase I licensees. To estimate the
number of such licensees that are small
businesses, the Commission applies the
small business size standard under the
SBA rules applicable. The SBA has
deemed a wireless business to be small
if it has 1,500 or fewer employees. For
this service, the SBA uses the category
of Wireless Telecommunications
Carriers (except Satellite). Census data
for 2007, which supersede data from the
2002 Census, show that there were
1,383 firms that operated that year. Of
those 1,383, 1,368 had fewer than 100
employees, and 15 firms had more than
100 employees. Thus under this
category and the associated small
business size standard, the majority of
firms can be considered small.
226. 220 MHz Radio Service—Phase II
Licensees. The 220 MHz service has
both Phase I and Phase II licenses. The
Phase II 220 MHz service is a new
service, and is subject to spectrum
auctions. In the 220 MHz Third Report
and Order, the Commission adopted a
small business size standard for ‘‘small’’
and ‘‘very small’’ businesses for
purposes of determining their eligibility
for special provisions such as bidding
credits and installment payments. This
small business size standard indicates
that a ‘‘small business’’ is an entity that,
together with its affiliates and
controlling principals, has average gross
revenues not exceeding $15 million for
the preceding three years. A ‘‘very small
business’’ is an entity that, together with
its affiliates and controlling principals,
has average gross revenues that do not
exceed $3 million for the preceding
three years. The SBA has approved
these small business size standards.
Auctions of Phase II licenses
commenced on September 15, 1998, and
closed on October 22, 1998. In the first
auction, 908 licenses were auctioned in
three different-sized geographic areas:
Three nationwide licenses, 30 Regional
Economic Area Group (EAG) Licenses,
and 875 Economic Area (EA) Licenses.
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Of the 908 licenses auctioned, 693 were
sold. Thirty-nine small businesses won
licenses in the first 220 MHz auction.
The second auction included 225
licenses: 216 EA licenses and 9 EAG
licenses. Fourteen companies claiming
small business status won 158 licenses.
227. 800 MHz and 900 MHz
Specialized Mobile Radio Licenses. The
Commission awards small business
bidding credits in auctions for
Specialized Mobile Radio (‘‘SMR’’)
geographic area licenses in the 800 MHz
and 900 MHz bands to entities that had
revenues of no more than $15 million in
each of the three previous calendar
years. The Commission awards very
small business bidding credits to
entities that had revenues of no more
than $3 million in each of the three
previous calendar years. The SBA has
approved these small business size
standards for the 800 MHz and 900 MHz
SMR Services. The Commission has
held auctions for geographic area
licenses in the 800 MHz and 900 MHz
bands. The 900 MHz SMR auction was
completed in 1996. Sixty bidders
claiming that they qualified as small
businesses under the $15 million size
standard won 263 geographic area
licenses in the 900 MHz SMR band. The
800 MHz SMR auction for the upper 200
channels was conducted in 1997. Ten
bidders claiming that they qualified as
small businesses under the $15 million
size standard won 38 geographic area
licenses for the upper 200 channels in
the 800 MHz SMR band. A second
auction for the 800 MHz band was
conducted in 2002 and included 23 BEA
licenses. One bidder claiming small
business status won five licenses.
228. The auction of the 1,053 800
MHz SMR geographic area licenses for
the General Category channels was
conducted in 2000. Eleven bidders won
108 geographic area licenses for the
General Category channels in the 800
MHz SMR band qualified as small
businesses under the $15 million size
standard. In an auction completed in
2000, a total of 2,800 Economic Area
licenses in the lower 80 channels of the
800 MHz SMR service were awarded. Of
the 22 winning bidders, 19 claimed
small business status and won 129
licenses. Thus, combining all three
auctions, 40 winning bidders for
geographic licenses in the 800 MHz
SMR band claimed status as small
business.
229. In addition, there are numerous
incumbent site-by-site SMR licensees
and licensees with extended
implementation authorizations in the
800 and 900 MHz bands. We do not
know how many firms provide 800 MHz
or 900 MHz geographic area SMR
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pursuant to extended implementation
authorizations, nor how many of these
providers have annual revenues of no
more than $15 million. One firm has
over $15 million in revenues. In
addition, we do not know how many of
these firms have 1,500 or fewer
employees. We assume, for purposes of
this analysis, that all of the remaining
existing extended implementation
authorizations are held by small
entities, as that small business size
standard is approved by the SBA.
230. 700 MHz Guard Band Licensees.
In 2000, in the 700 MHz Guard Band
Order, the Commission adopted size
standards for ‘‘small businesses’’ and
‘‘very small businesses’’ for purposes of
determining their eligibility for special
provisions such as bidding credits and
installment payments. A small business
in this service is an entity that, together
with its affiliates and controlling
principals, has average gross revenues
not exceeding $40 million for the
preceding three years. Additionally, a
very small business is an entity that,
together with its affiliates and
controlling principals, has average gross
revenues that are not more than $15
million for the preceding three years.
SBA approval of these definitions is not
required. An auction of 52 Major
Economic Area licenses commenced on
September 6, 2000, and closed on
September 21, 2000. Of the 104 licenses
auctioned, 96 licenses were sold to nine
bidders. Five of these bidders were
small businesses that won a total of 26
licenses. A second auction of 700 MHz
Guard Band licenses commenced on
February 13, 2001, and closed on
February 21, 2001. All eight of the
licenses auctioned were sold to three
bidders. One of these bidders was a
small business that won a total of two
licenses.
231. Air-Ground Radiotelephone
Service. The Commission has previously
used the SBA’s small business size
standard applicable to Wireless
Telecommunications Carriers (except
Satellite), i.e., an entity employing no
more than 1,500 persons. There are
approximately 100 licensees in the AirGround Radiotelephone Service, and
under that definition, the Commission
estimates that almost all of them qualify
as small entities under the SBA
definition. For purposes of assigning
Air-Ground Radiotelephone Service
licenses through competitive bidding,
the Commission has defined ‘‘small
business’’ as an entity that, together with
controlling interests and affiliates, has
average annual gross revenues for the
preceding three years not exceeding $40
million. A ‘‘very small business’’ is
defined as an entity that, together with
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controlling interests and affiliates, has
average annual gross revenues for the
preceding three years not exceeding $15
million. These definitions were
approved by the SBA. In May 2006, the
Commission completed an auction of
nationwide commercial Air-Ground
Radiotelephone Service licenses in the
800 MHz band (Auction No. 65). On
June 2, 2006, the auction closed with
two winning bidders winning two AirGround Radiotelephone Services
licenses. Neither of the winning bidders
claimed small business status.
232. Rural Radiotelephone Service.
The Commission has not adopted a size
standard for small businesses specific to
the Rural Radiotelephone Service. A
significant subset of the Rural
Radiotelephone Service is the Basic
Exchange Telephone Radio System
(BETRS). For purposes of its analysis of
the Rural Radiotelephone Service, the
Commission uses the SBA small
business size standard for the category
Wireless Telecommunications Carriers
(except satellite), which is 1,500 or
fewer employees. Census data for 2007,
which supersede data from the 2002
Census, show that there were 1,383
firms that operated that year. Of those
1,383, 1,368 had fewer than 100
employees, and 15 firms had more than
100 employees. Thus under this
category and the associated small
business size standard, the majority of
firms in the Rural Radiotelephone
Service can be considered small.
233. Aviation and Marine Radio
Services. Small businesses in the
aviation and marine radio services use
a very high frequency (VHF) marine or
aircraft radio and, as appropriate, an
emergency position-indicating radio
beacon (and/or radar) or an emergency
locator transmitter. The Commission has
not developed a small business size
standard specifically applicable to these
small businesses. For purposes of this
analysis, the Commission uses the SBA
small business size standard for the
category Wireless Telecommunications
Carriers (except satellite), which is
1,500 or fewer employees. Census data
for 2007, which supersede data from the
2002 Census, show that there were
1,383 firms that operated that year. Of
those 1,383, 1,368 had fewer than 100
employees, and 15 firms had more than
100 employees. Thus under this
category and the associated small
business size standard, the majority of
firms can be considered small.
234. Fixed Microwave Services.
Microwave services include common
carrier, private-operational fixed, and
broadcast auxiliary radio services. They
also include the Local Multipoint
Distribution Service (LMDS), the Digital
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Electronic Message Service (DEMS), and
the 24 GHz Service, where licensees can
choose between common carrier and
non-common carrier status. The
Commission has not yet defined a small
business with respect to microwave
services. For purposes of this IRFA, the
Commission will use the SBA’s
definition applicable to Wireless
Telecommunications Carriers (except
satellite)—i.e., an entity with no more
than 1,500 persons is considered small.
For the category of Wireless
Telecommunications Carriers (except
satellite), Census data for 2007, which
supersede data from the 2002 Census,
show that there were 1,383 firms that
operated that year. Of those 1,383, 1,368
had fewer than 100 employees, and 15
firms had more than 100 employees.
Thus under this category and the
associated small business size standard,
the majority of firms can be considered
small. The Commission notes that the
number of firms does not necessarily
track the number of licensees. The
Commission estimates that virtually all
of the Fixed Microwave licensees
(excluding broadcast auxiliary
licensees) would qualify as small
entities under the SBA definition.
235. Offshore Radiotelephone Service.
This service operates on several UHF
television broadcast channels that are
not used for television broadcasting in
the coastal areas of states bordering the
Gulf of Mexico. There are presently
approximately 55 licensees in this
service. The Commission is unable to
estimate at this time the number of
licensees that would qualify as small
under the SBA’s small business size
standard for the category of Wireless
Telecommunications Carriers (except
satellite). Under that SBA small
business size standard, a business is
small if it has 1,500 or fewer employees.
Census data for 2007, which supersede
data from the 2002 Census, show that
there were 1,383 firms that operated that
year. Of those 1,383, 1,368 had fewer
than 100 employees, and 15 firms had
more than 100 employees. Thus under
this category and the associated small
business size standard, the majority of
firms can be considered small.
236. 39 GHz Service. The Commission
created a special small business size
standard for 39 GHz licenses—an entity
that has average gross revenues of $40
million or less in the three previous
calendar years. An additional size
standard for ‘‘very small business’’ is: An
entity that, together with affiliates, has
average gross revenues of not more than
$15 million for the preceding three
calendar years. The SBA has approved
these small business size standards. The
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auction of the 2,173 39 GHz licenses
began on April 12, 2000 and closed on
May 8, 2000. The 18 bidders who
claimed small business status won 849
licenses. Consequently, the Commission
estimates that 18 or fewer 39 GHz
licensees are small entities that may be
affected by our action.
237. Wireless Cable Systems.
Broadband Radio Service and
Educational Broadband Service.
Broadband Radio Service systems,
previously referred to as Multipoint
Distribution Service (MDS) and
Multichannel Multipoint Distribution
Service (MMDS) systems, and ‘‘wireless
cable,’’ transmit video programming to
subscribers and provide two-way high
speed data operations using the
microwave frequencies of the
Broadband Radio Service (BRS) and
Educational Broadband Service (EBS)
(previously referred to as the
Instructional Television Fixed Service
(ITFS)). In connection with the 1996
BRS auction, the Commission
established a small business size
standard as an entity that had annual
average gross revenues of no more than
$40 million in the previous three
calendar years. The BRS auctions
resulted in 67 successful bidders
obtaining licensing opportunities for
493 Basic Trading Areas (BTAs). Of the
67 auction winners, 61 met the
definition of a small business. BRS also
includes licensees of stations authorized
prior to the auction. At this time, we
estimate that of the 61 small business
BRS auction winners, 48 remain small
business licensees. In addition to the 48
small businesses that hold BTA
authorizations, there are approximately
392 incumbent BRS licensees that are
considered small entities. After adding
the number of small business auction
licensees to the number of incumbent
licensees not already counted, we find
that there are currently approximately
440 BRS licensees that are defined as
small businesses under either the SBA
or the Commission’s rules. In 2009, the
Commission conducted Auction 86, the
sale of 78 licenses in the BRS areas. The
Commission offered three levels of
bidding credits: (i) A bidder with
attributed average annual gross revenues
that exceed $15 million and do not
exceed $40 million for the preceding
three years (small business) will receive
a 15 percent discount on its winning
bid; (ii) a bidder with attributed average
annual gross revenues that exceed $3
million and do not exceed $15 million
for the preceding three years (very small
business) will receive a 25 percent
discount on its winning bid; and (iii) a
bidder with attributed average annual
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gross revenues that do not exceed $3
million for the preceding three years
(entrepreneur) will receive a 35 percent
discount on its winning bid. Auction 86
concluded in 2009 with the sale of 61
licenses. Of the ten winning bidders,
two bidders that claimed small business
status won 4 licenses; one bidder that
claimed very small business status won
three licenses; and two bidders that
claimed entrepreneur status won six
licenses.
238. In addition, the SBA’s Cable
Television Distribution Services small
business size standard is applicable to
EBS. There are presently 2,032 EBS
licensees. All but 100 of these licenses
are held by educational institutions.
Educational institutions are included in
this analysis as small entities. Thus, we
estimate that at least 1,932 licensees are
small businesses. Since 2007, Cable
Television Distribution 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.’’ For these services, the
Commission uses the SBA small
business size standard for the category
‘‘Wireless Telecommunications Carriers
(except satellite),’’ which is 1,500 or
fewer employees. To gauge small
business prevalence for these cable
services we must, however, use the most
current census data. Census data for
2007, which supersede data from the
2002 Census, show that there were
1,383 firms that operated that year. Of
those 1,383, 1,368 had fewer than 100
employees, and 15 firms had more than
100 employees. Thus under this
category and the associated small
business size standard, the majority of
firms can be considered small. The
Commission notes that the Census’ use
the classifications ‘‘firms’’ does not track
the number of ‘‘licenses’’.
239. In the 1998 and 1999 LMDS
auctions, the Commission defined a
small business as an entity that has
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
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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. Based on this information, the
Commission believes that the number of
small LMDS licenses will include the 93
winning bidders in the first auction and
the 40 winning bidders in the reauction, for a total of 133 small entity
LMDS providers as defined by the SBA
and the Commission’s auction rules.
240. 218–219 MHz Service. The first
auction of 218–219 MHz spectrum
resulted in 170 entities winning licenses
for 594 Metropolitan Statistical Area
(MSA) licenses. Of the 594 licenses, 557
were won by entities qualifying as a
small business. For that auction, the
small business size standard was an
entity that, together with its affiliates,
has no more than a $6 million net worth
and, after federal income taxes
(excluding any carry over losses), has no
more than $2 million in annual profits
each year for the previous two years. In
the 218–219 MHz Report and Order and
Memorandum Opinion and Order, the
Commission established a small
business size standard for a ‘‘small
business’’ as an entity that, together with
its affiliates and persons or entities that
hold interests in such an entity and
their affiliates, has average annual gross
revenues not to exceed $15 million for
the preceding three years. A ‘‘very small
business’’ is defined as an entity that,
together with its affiliates and persons
or entities that hold interests in such an
entity and its affiliates, has average
annual gross revenues not to exceed $3
million for the preceding three years.
These size standards will be used in
future auctions of 218–219 MHz
spectrum.
241. 24 GHz—Incumbent Licensees.
This analysis may affect incumbent
licensees who were relocated to the 24
GHz band from the 18 GHz band, and
applicants who wish to provide services
in the 24 GHz band. For this service, the
Commission uses the SBA small
business size standard for the category
‘‘Wireless Telecommunications Carriers
(except satellite),’’ which is 1,500 or
fewer employees. To gauge small
business prevalence for these cable
services we must, however, use the most
current census data. Census data for
2007, which supersede data from the
2002 Census, show that there were
1,383 firms that operated that year. Of
those 1,383, 1,368 had fewer than 100
employees, and 15 firms had more than
100 employees. Thus under this
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category and the associated small
business size standard, the majority of
firms can be considered small. The
Commission notes that the Census’ use
of the classifications ‘‘firms’’ does not
track the number of ‘‘licenses’’. The
Commission believes that there are only
two licensees in the 24 GHz band that
were relocated from the 18 GHz band,
Teligent and TRW, Inc. It is our
understanding that Teligent and its
related companies have less than 1,500
employees, though this may change in
the future. TRW is not a small entity.
Thus, only one incumbent licensee in
the 24 GHz band is a small business
entity.
242. 24 GHz—Future Licensees. With
respect to new applicants in the 24 GHz
band, the small business size standard
for ‘‘small business’’ is an entity that,
together with controlling interests and
affiliates, has average annual gross
revenues for the three preceding years
not in excess of $15 million. ‘‘Very small
business’’ in the 24 GHz band is an
entity that, together with controlling
interests and affiliates, has average gross
revenues not exceeding $3 million for
the preceding three years. The SBA has
approved these small business size
standards. These size standards will
apply to the future auction, if held.
243. Satellite Telecommunications
Providers. Two economic census
categories address the satellite industry.
The first category has a small business
size standard of $15 million or less in
average annual receipts, under SBA
rules. The second has a size standard of
$25 million or less in annual receipts.
244. The category of Satellite
Telecommunications ‘‘comprises
establishments primarily engaged in
providing telecommunications services
to other establishments in the
telecommunications and broadcasting
industries by forwarding and receiving
communications signals via a system of
satellites or reselling satellite
telecommunications.’’ Census Bureau
data for 2007 show that 512 Satellite
Telecommunications firms that operated
for that entire year. Of this total, 464
firms had annual receipts of under $10
million, and 18 firms had receipts of
$10 million to $24,999,999.
Consequently, the Commission
estimates that the majority of Satellite
Telecommunications firms are small
entities that might be affected by our
action.
245. The second category, i.e. ‘‘All
Other Telecommunications’’ comprises
‘‘establishments primarily engaged in
providing specialized
telecommunications services, such as
satellite tracking, communications
telemetry, and radar station operation.
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This industry also includes
establishments primarily engaged in
providing satellite terminal stations and
associated facilities connected with one
or more terrestrial systems and capable
of transmitting telecommunications to,
and receiving telecommunications from,
satellite systems. Establishments
providing Internet services or voice over
Internet protocol (VoIP) services via
client-supplied telecommunications
connections are also included in this
industry.’’ For this category, Census
Bureau data for 2007 show that there
were a total of 2,383 firms that operated
for the entire year. Of this total, 2,347
firms had annual receipts of under $25
million and 12 firms had annual
receipts of $25 million to $49, 999,999.
Consequently, the Commission
estimates that the majority of All Other
Telecommunications firms are small
entities that might be affected by our
action.
e. Cable and OVS Operators
246. Because section 706 requires us
to monitor the deployment of broadband
regardless of technology or transmission
media employed, the Commission
anticipates that some broadband service
providers may not provide telephone
service. Accordingly, the Commission
describes below other types of firms that
may provide broadband services,
including cable companies, MDS
providers, and utilities, among others.
247. Cable and Other Program
Distributors. 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. Census data
for 2007, which supersede data from the
2002 Census, show that there were
1,383 firms that operated that year. Of
those 1,383, 1,368 had fewer than 100
employees, and 15 firms had more than
100 employees. Thus under this
category and the associated small
business size standard, the majority of
such firms can be considered small.
248. Cable Companies and Systems.
The Commission has also developed its
own small business size standards, for
the purpose of cable rate regulation.
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Under the Commission’s rules, a ‘‘small
cable company’’ is one serving 400,000
or fewer subscribers, nationwide.
Industry data indicate that, of 1,076
cable operators nationwide, all but
eleven are small under this size
standard. In addition, under the
Commission’s rules, a ‘‘small system’’ is
a cable system serving 15,000 or fewer
subscribers. Industry data indicate that,
of 7,208 systems nationwide, 6,139
systems have under 10,000 subscribers,
and an additional 379 systems have
10,000–19,999 subscribers. Thus, under
this second size standard, most cable
systems are small.
249. Cable System Operators. 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 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.
Industry data indicate that, of 1,076
cable operators nationwide, all but ten
are small under this size standard. We
note that 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 we are unable to estimate
more accurately the number of cable
system operators that would qualify as
small under this size standard.
250. Open Video Services. Open
Video Service (OVS) systems provide
subscription services. The open video
system (‘‘OVS’’) framework was
established in 1996, and is one of four
statutorily recognized options for the
provision of video programming
services by local exchange carriers. 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 small business size standard
covering cable services, which is ‘‘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. To gauge small business
prevalence for the OVS service, the
Commission relies on data currently
available from the U.S. Census for the
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year 2007. According to that source,
there were 3,188 firms that in 2007 were
Wired Telecommunications Carriers. Of
these, 3,144 operated with less than
1,000 employees, and 44 operated with
more than 1,000 employees. However,
as to the latter 44 there is no data
available that shows how many
operated with more than 1,500
employees. Based on this data, the
majority of these firms can be
considered small. In addition, we note
that the Commission has certified some
OVS operators, with some now
providing service. Broadband service
providers (‘‘BSPs’’) are currently the
only significant holders of OVS
certifications or local OVS franchises.
The Commission does not have
financial or employment information
regarding the entities authorized to
provide OVS, some of which may not
yet be operational. Thus, at least some
of the OVS operators may qualify as
small entities. The Commission further
notes that it has certified approximately
45 OVS operators to serve 75 areas, and
some of these are currently providing
service. Affiliates of Residential
Communications Network, Inc. (RCN)
received approval to operate OVS
systems in New York City, Boston,
Washington, DC, and other areas. RCN
has sufficient revenues to assure that
they do not qualify as a small business
entity. Little financial information is
available for the other entities that are
authorized to provide OVS and are not
yet operational. Given that some entities
authorized to provide OVS service have
not yet begun to generate revenues, the
Commission concludes that up to 44
OVS operators (those remaining) might
qualify as small businesses that may be
affected by the rules and policies
adopted herein.
f. Internet Service Providers, Web
Portals and Other Information Services
251. Internet Service Providers, Web
Portals and Other Information Services.
In 2007, the SBA recognized two new
small business, economic census
categories. They are (1) Internet
Publishing and Broadcasting and Web
Search Portals, and (2) All Other
Information Services.
252. Internet Service Providers. The
2007 Economic Census places these
firms, whose services might include
voice over Internet protocol (VoIP), in
either of two categories, depending on
whether the service is provided over the
provider’s own telecommunications
facilities (e.g., cable and DSL ISPs), or
over client-supplied
telecommunications connections (e.g.,
dial-up ISPs). The former are within the
category of Wired Telecommunications
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Carriers, which has an SBA small
business size standard of 1,500 or fewer
employees. These are also labeled
‘‘broadband.’’ The latter are within the
category of All Other
Telecommunications, which has a size
standard of annual receipts of $25
million or less. These are labeled nonbroadband.
253. The most current Economic
Census data for all such firms are 2007
data, which are detailed specifically for
ISPs within the categories above. For the
first category, the data show that 396
firms operated for the entire year, of
which 159 had nine or fewer employees.
For the second category, the data show
that 1,682 firms operated for the entire
year. Of those, 1,675 had annual
receipts below $25 million per year, and
an additional two had receipts of
between $25 million and $ 49,999,999.
Consequently, we estimate that the
majority of ISP firms are small entities.
254. Internet Publishing and
Broadcasting and Web Search Portals.
This industry comprises establishments
primarily engaged in (1) publishing and/
or broadcasting content on the Internet
exclusively or (2) operating Web sites
that use a search engine to generate and
maintain extensive databases of Internet
addresses and content in an easily
searchable format (and known as Web
search portals). The publishing and
broadcasting establishments in this
industry do not provide traditional
(non-Internet) versions of the content
that they publish or broadcast. They
provide textual, audio, and/or video
content of general or specific interest on
the Internet exclusively. Establishments
known as Web search portals often
provide additional Internet services,
such as e-mail, connections to other web
sites, auctions, news, and other limited
content, and serve as a home base for
Internet users. The SBA has developed
a small business size standard for this
category; that size standard is fewer
than 500 employees. Thus, a firm in this
category with less than 500 employees
is considered a small business.
According to Census Bureau data for
2007, there were 2,705 firms that
provided one or more of these services
for that entire year. Of these, 2,682
operated with less than 500 employees
and 13 operated with 500 to 999
employees. Consequently, we estimate
the majority of these firms are small
entities that may be affected by our
proposed actions.
255. Data Processing, Hosting, and
Related Services. This industry
comprises establishments primarily
engaged in providing infrastructure for
hosting or data processing services.
These establishments may provide
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specialized hosting activities, such as
web hosting, streaming services or
application hosting; provide application
service provisioning; or may provide
general time-share mainframe facilities
to clients. Data processing
establishments provide complete
processing and specialized reports from
data supplied by clients or provide
automated data processing and data
entry services. The SBA has developed
a small business size standard for this
category; that size standard is $25
million or less in average annual
receipts. According to Census Bureau
data for 2007, there were 8,060 firms in
this category that operated for the entire
year. Of these, 6,726 had annual receipts
of under $25 million, and 155 had
receipts between $25 million and
$49,999,999 million. Consequently, we
estimate that the majority of these firms
are small entities that may be affected
by our proposed actions.
256. All Other Information Services.
‘‘This industry comprises establishments
primarily engaged in providing other
information services (except new
syndicates and libraries and archives).’’
Our action pertains to interconnected
VoIP services, which could be provided
by entities that provide other services
such as e-mail, online gaming, web
browsing, video conferencing, instant
messaging, and other, similar IP-enabled
services. The SBA has developed a
small business size standard for this
category; that size standard is $7.0
million or less in average annual
receipts. According to Census Bureau
data for 2007, there were 367 firms in
this category that operated for the entire
year. Of these, 334 had annual receipts
of under $5 million, and an additional
11 firms had receipts of between $5
million and $9,999,999. Consequently,
we estimate that the majority of these
firms are small entities that may be
affected by our action.
D. Description of Projected Reporting,
Recordkeeping, and Other Compliance
Requirements
257. We summarize below the
requirements in the NPRM and
proposed rules regarding compliance
with sections 716 and 717, including
recordkeeping and reporting obligations.
Additional information on each of these
requirements can be found in the
NPRM.
258. Recordkeeping. The NPRM
proposes, beginning one year after the
effective date of regulations
promulgated by the Commission
pursuant to section 716(e), to require
that each manufacturer of equipment
(including software) used to provide
ACS and each provider of such services
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subject to sections 255, 716, and 718,
not exempted under rules proposed in
that NPRM, maintain, in the ordinary
course of business and for a reasonable
period, certain records. These records
are to document the efforts taken by
such manufacturer or service provider
to implement sections 255, 716, and
718, including: (1) Information about
the manufacturer’s or provider’s efforts
to consult with individuals with
disabilities; (2) descriptions of the
accessibility features of its products and
services; and (3) information about the
compatibility of such products and
services with peripheral devices or
specialized customer premise
equipment commonly used by
individuals with disabilities to achieve
access.
259. Reporting Obligations. The
CVAA and the Commission’s proposed
rules require that an officer of each
manufacturer of equipment (including
software) used to provide ACS and an
officer of each provider of such services
submit to the Commission an annual
certificate that records are being kept in
accordance with the above
recordkeeping requirements, unless
such manufacturer or provider has been
exempted from compliance with section
716 under applicable rules.
260. Costs of Compliance. Because of
the diverse manufacturers of equipment
used to provide ACS and diverse
providers of ACS that may be subject to
section 716, the possible exemption of
certain small entities from compliance
with that section, the multiple general
and entity-specific factors used in
determining, whether for a given
manufacturer (or service provider)
accessibility for a particular item of ACS
equipment (or a particular service) is
achievable, and the various provisions
of section 716 and the proposed rules on
when and to what extent accessibility
must be incorporated into a given item
of ACS equipment or service, it is
difficult to estimate the costs of
compliance for those small entities that
may not be covered by an exemption or
waiver, should the Commission choose
to adopt any such exemptions or
waivers. Accordingly, the NPRM seeks
comment on the costs of compliance
with these proposed rules.
E. Steps Taken To Minimize Significant
Economic Impact on Small Entities and
Significant Alternatives Considered
261. The RFA requires an agency to
describe any significant alternatives that
it has considered in developing its
approach, which may include the
following four alternatives (among
others): ‘‘(1) The establishment of
differing compliance or reporting
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requirements or timetables that take into
account the resources available to small
entities; (2) the clarification,
consolidation, or simplification of
compliance and reporting requirements
under the rule for such small entities;
(3) the use of performance rather than
design standards; and (4) an exemption
from coverage of the rule, or any part
thereof, for such small entities.’’
262. In addition to the factors in the
RFA identified above, the achievability
factors in the CVAA also serve to
mitigate adverse impacts and reduce
burdens on small entities. In the NPRM,
the Commission proposes to make
determinations about what is achievable
by giving four factors equal weight. Two
of these factors take into account the
resources available to covered entities
and may have a direct impact on small
entities and the obligations they face
under the CVAA: the second factor, the
technical and economic impact on the
operation of the manufacturer or
provider and on the operation of the
specific equipment or service in
question, and the third factor, the type
of operations of the manufacturer or
provider. In addition, consideration of
the first factor (the nature and cost of
the steps needed to meet the
requirements with respect to the
specific equipment or service in
question) and the fourth factor (the
extent to which the service provider or
manufacturer in question offers
accessibility services or equipment
containing varying degrees of
functionality and features, and offered
at different price points) would benefit
all entities subject to section 716,
including small entities.
263. The Commission proposes not to
consider additional factors and only to
consider the factors enumerated in the
statute, in light of legislative history
directing the Commission to weigh the
factors equally. While adoption of this
proposal would prevent the
Commission from considering
additional factors that may benefit small
entities, it would also require that the
Commission consider only the factors
listed above, which clearly serve to
reduce the burden on small entities. The
Commission does, however, seek
comment on whether it might have the
discretion to weigh other factors not
specified in the statute. In addition, the
Commission proposes to construe the
factors broadly and to weigh any
relevant considerations in determining
their meaning.
264. The Commission also proposes to
consider exemptions from section 716
for small entities and, if one or more
such exemptions were adopted, further
proposes to consider various criteria in
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setting standards for such exemptions.
The Commission could have proposed
not to exercise its discretionary
authority to exempt small entities or
could have proposed one or more
specific size standards for any such
exemptions but determined that it was
necessary to build a more complete
factual record on what factors it should
consider in making this determination.
Specifically, before making a specific
proposal, the Commission seeks to
understand the impact any such
proposal would have on small entities,
the marketplace of ACS services and
equipment, and on people with
disabilities.
265. In addition, the Commission
proposes consideration of specific
performance objectives and seeks
comment on alternative ways to develop
procedures and timelines to develop
these objectives. Such alternatives could
be structured to reduce the burdens on
small entities of compliance with
section 716.
266. The Commission also proposes
not to adopt technical standards as safe
harbors at this time. It determined that
it needed to develop a more complete
record on this issue before taking action.
267. Finally, the Commission does not
propose separate recordkeeping and
reporting obligations for small entities.
The Commission, however, has
proposed that it will not mandate any
one form in which records must be kept,
to take into account that covered entities
have a variety of business models and
modes of operation.
F. Federal Rules That May Duplicate,
Overlap, or Conflict With Proposed
Rules
268. Section 255(e) of the
Communications Act, as amended, 47
U.S.C. 255(e), directs the United States
Access Board (Access Board) to develop
equipment accessibility guidelines ‘‘in
conjunction with’’ the Commission, and
periodically to review and update those
guidelines. We view the Board’s current
guidelines as well as its draft guidelines
as starting points for our interpretation
and implementation of sections 716 and
717 of the Communications Act, as
amended, 47 U.S.C. 617, 618, as well as
section 255, but because they do not
currently cover ACS or equipment used
to provide or access ACS, we must
necessarily adapt these guidelines in
our comprehensive implementation
scheme. As such, it is our tentative view
that our proposed rules do not overlap,
duplicate, or conflict with either Access
Board Final Rules, or (if later adopted)
the Access Board Draft Guidelines.
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Paperwork Reduction Act of 1995
269. Initial Paperwork Reduction
Analysis. The Notice of Proposed
Rulemaking contains proposed new or
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. Public and
agency comments are due 60 days after
the date of publication in the Federal
Register. Comments should address: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
burden estimates; (c) ways to enhance
the quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on the respondents,
including the use of automated
collection techniques or other forms of
information technology. In addition,
pursuant to the Small Business
Paperwork Relief Act of 2002, Public
Law 107–198, see 44 U.S.C. 3506(c)(4),
we seek specific comment on how we
might ‘‘further reduce the information
collection burden for small business
concerns with fewer than 25
employees.’’ We note that we have
described impacts that might affect
small businesses, which includes most
businesses with fewer than 25
employees, in the IRFA.
IX. Ordering Clauses
270. Accordingly, it is ordered that
pursuant to sections 1–4, 255, 303(r),
403, 503, 716, and 717 of the
Communications Act of 1934, as
amended, 47 U.S.C. 151–154, 255,
303(r), 403, 503, 617, 618, this Notice of
Proposed Rulemaking in CG Docket No.
10–145, WT Docket No. 96–198, and CG
Docket No. 10–213 is adopted.
271. It is further ordered that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Notice of Proposed Rulemaking,
including the Initial Regulatory
Flexibility Analysis, to the Chief
Counsel for Advocacy of the Small
Business Administration.
List of Subjects
47 CFR Part 1
Administrative practice and
procedure, Communications common
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carriers, Individuals with disabilities,
Radio, Reporting and recordkeeping
requirements, Satellites,
Telecommunications.
any single act or failure to act described
in paragraph (a) of this section.
*
*
*
*
*
47 CFR Parts 6 and 7
Communications equipment,
Individuals with disabilities,
Telecommunications.
PART 6—ACCESS TO
TELECOMMUNICATIONS SERVICE,
TELECOMMUNICATIONS EQUIPMENT
AND CUSTOMER PREMISES
EQUIPMENT BY PERSONS WITH
DISABILITIES
47 CFR Part 8
Advanced communications services
equipment, Manufacturers of equipment
used for advanced communications
services, Providers of advanced
communications services, Individuals
with disabilities, Recordkeeping and
enforcement requirements.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Proposed Rules
For the reasons discussed in the
preamble, the Federal Communications
Commission proposes to amend 47 parts
1, 6, 7, and 8 as follows:
1. The authority citation for part 1
reads as follows:
Authority: 15 U.S.C. 79 et seq.; 47 U.S.C.
151, 154, 160, 201, 225, 303, 617 and 618.
2. Amend § 1.80 by redesignating
paragraphs (b)(3), (4) and (5) as
paragraphs (b)(4), (5) and (6) and by
adding new paragraph (b)(3) and
revising newly redesignated paragraph
(b)(4) to read as follows:
Forfeiture proceedings.
*
*
*
*
*
(b) * * *
(3) If the violator is a manufacturer or
service provider subject to the
requirements of section 255, 716 or 718
of the Communications Act, and is
determined by the Commission to have
violated any such requirement, the
manufacturer or service provider shall
be liable to the United States for a
forfeiture penalty of not more than
$100,000 for each violation or each day
of a continuing violation, except that the
amount assessed for any continuing
violation shall not exceed a total of
$1,000,000 for any single act or failure
to act.
(4) In any case not covered in
paragraphs (b)(1), (2), or (3) of this
section, the amount of any forfeiture
penalty determined under this section
shall not exceed $16,000 for each
violation or each day of a continuing
violation, except that the amount
assessed for any continuing violation
shall not exceed a total of $112,500 for
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Authority: 47 U.S.C. 151–154, 251, 255,
303(r), 617, 618.
Subpart D—[Removed]
4. Remove Subpart D, consisting of
§§ 6.15 through 6.23.
PART 7—ACCESS TO VOICEMAIL AND
INTERACTIVE MENU SERVICES AND
EQUIPMENT BY PEOPLE WITH
DISABILITIES
5. The authority citation for part 7
reads as follows:
Authority: 47 U.S.C. 151, 154(i), 154(j),
208, 255, 617, 618.
PART 1—PRACTICE AND
PROCEDURE
§ 1.80
3. The authority citation for part 6
reads as follows:
Subpart D—[Removed]
6. Remove Subpart D, consisting of
§§ 7.17 through 7.23.
7. Add part 8 to read as follows:
PART 8—ACCESS TO ADVANCED
COMMUNICATIONS SERVICES AND
EQUIPMENT BY PEOPLE WITH
DISABILITIES
Subpart A—Scope
Sec.
8.1 Applicability.
8.2 Exclusions.
8.3 Waivers.
Subpart B—Definitions
8.4 Definitions.
Subpart C—Implementation
Requirements—What Must Covered Entities
Do?
8.5 Obligations
8.6 Performance objectives.
8.7 through 8.15 [Reserved]
Subpart D—Recordkeeping and
Enforcement
8.16 Generally.
8.17 Recordkeeping.
8.18 Informal or formal complaints.
8.19 Informal complaints; form and content.
8.20 Procedure; designation of agents for
service.
8.21 Answers and replies to informal
complaints.
8.22 Review and disposition of informal
complaints.
8.23 General pleading requirements.
8.24 Format and content of formal
complaints.
8.25 Damages.
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8.26
Joinder of complainants and causes of
action.
8.27 Answers.
8.28 Cross-complaints and counterclaims.
8.29 Replies.
8.30 Motions.
8.31 Formal complaints not stating a cause
of action; defective pleadings.
8.32 Discovery.
8.33 Confidentiality of information
produced or exchanged by the parties.
8.34 Other required written submissions.
8.35 Status conference.
8.36 Specifications as to pleadings, briefs,
and other documents; subscription.
8.37 Copies; service; separate filings against
multiple defendants.
Authority: 47 U.S.C. 151–154, 255, 303,
403, 503, 617, 618 unless otherwise noted.
Subpart A—Scope
§ 8.1
Applicability.
Subject to the exclusions described in
this part, the rules in this part apply to:
(a) Any provider of advanced
communications services, as that term is
defined in this part, offering such
services in or affecting interstate
commerce;
(b) Any manufacturer of equipment
used for advanced communications
services, including but not limited to
end user equipment, network
equipment, and software, that such
manufacturer offers for sale or otherwise
distributes in interstate commerce.
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§ 8.2
Exclusions.
(a) Subject to the exception in
paragraph (c) of this section, no person
shall be subject to the requirements of
the rules in this part with respect to
advanced communications services or
the equipment used to provide or access
such services to the extent such person
transmits, routes, or stores in
intermediate or transient storage the
communications made available
through the provision of advanced
communications services by a third
party.
(b) Subject to the exception in
paragraph (c) of this section, no person
shall be subject to the requirements of
the rules in this part with respect to
advanced communications services or
the equipment used to provide or access
such services to the extent such person
provides an information location tool,
such as a directory, index, reference,
pointer, menu, guide, user interface, or
hypertext link, through which an end
user obtains access to such video
programming, online content,
applications, services, advanced
communications services, or equipment
used to provide or access advanced
communications services.
(c) The exclusions in paragraphs (a)
and (b) of this section shall not apply to
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any person who relies on third party
applications, services, software,
hardware, or equipment to comply with
the requirements of this part with
respect to the provision of advanced
communications services or the
manufacture of equipment used to
provide such services.
(d) The requirements of this part shall
not apply to any equipment or services,
including interconnected VoIP service,
that were subject to the requirements of
section 255 of the Act on October 7,
2010, which remain subject to section
255 of the Act, as amended, and subject
to the rules in parts 6 and 7 of this
chapter.
(e) None of the rules in this part shall
apply to customized equipment or
services that are not offered directly to
the public regardless of the facilities
used. Also, none of the rules in this part
shall apply to customized equipment or
services that are not offered to such
classes of users as to be effectively
available to the public regardless of the
facilities used. However, this paragraph
shall not be construed to create an
exemption for equipment or for services
designed for and used by members of
the general public.
§ 8.3
Waivers.
Multi-purpose Services and
Equipment:
(a) Manufacturer. On its own motion
or in response to a petition by a
manufacturer of equipment used to
provide or access advanced
communications service or by any
interested party, the Commission may
waive the requirements of this part for
a feature or function of equipment used
to provide or access advanced
communications services, or for any
class of such equipment that:
(1) Is capable of accessing advanced
communications services and;
(2) Is designed for multiple purposes,
but is designed primarily for purposes
other than providing or accessing
advanced communications services.
(b) Service Provider. On its own
motion or in response to a petition by
a provider of advanced communications
services or by any interested party, the
Commission may waive the
requirements of this part for a feature or
function of equipment used to provide
or access advanced communications
services, or for any class of such
equipment that:
(1) Is capable of accessing advanced
communications services and;
(2) Is designed for multiple purposes,
but is designed primarily for purposes
other than providing or accessing
advanced communications services.
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Subpart B—Definitions
§ 8.4
Definitions.
(a) The term accessible shall have the
meaning provided in § 8.6(b).
(b) The term achievable shall mean
with reasonable effort or expense, as
determined by the Commission. In
making such a determination, the
Commission shall consider:
(1) The nature and cost of the steps
needed to meet the requirements of
section 716 of the Act and this part with
respect to the specific equipment or
service in question, such that if
accessibility to and usability by
individuals with disabilities can be
achieved only by a fundamental
alteration to the specific equipment or
service in question, then such
accessibility and usability is not
achievable;
(2) The technical and economic
impact on the operation of the
manufacturer or provider and on the
operation of the specific equipment or
service in question, including on the
development and deployment of new
communications technologies;
(3) The type and operations of the
manufacturer or provider; and
(4) The extent to which the service
provider or manufacturer in question
offers accessible services or equipment
containing varying degrees of
functionality and features, and offered
at differing price points.
(c) The term advanced
communications services shall mean:
(1) Interconnected VoIP service, as
that term is defined in this section;
(2) Non-interconnected VoIP service,
as that term is defined in this section;
(3) Electronic messaging service, as
that term is defined in this section; and
(4) Interoperable video conferencing
service, as that term is defined in this
section.
(d) The term application shall mean
software designed to perform or to help
the user perform a specific task or
specific tasks, such as communicating
by voice, electronic text messaging, or
video conferencing.
(e) The term compatible shall have the
meaning provided in § 8.6(d).
(f) The term customer premises
equipment shall mean equipment
employed on the premises of a person
(other than a carrier) to originate, route,
or terminate telecommunications.
(g) The term customized equipment or
services shall mean equipment and
services that are customized to unique
specifications requested by a consumer
and not otherwise available to the
general public, including public safety
networks and devices, but shall not
apply to equipment distributed to and
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services used by public or private sector
employees, including public safety
employees.
(h) The term disability shall mean a
physical or mental impairment that
substantially limits one or more of the
major life activities of an individual; a
record of such an impairment; or being
regarded as having such an impairment.
(i) The term electronic messaging
service means a service that provides
real-time or near real-time non-voice
messages in text form between
individuals over communications
networks.
(j) The term end user equipment shall
mean equipment designed for consumer
use, including equipment designed for
use by individuals with disabilities.
(k) The term hardware shall mean a
tangible communications device,
equipment, or physical component of
communications technology, including
peripheral devices, such as a smart
phone, a laptop computer, a desk top
computer, a screen, a keyboard, a
speaker, or an amplifier.
(l) The term interconnected VoIP
service shall have the same meaning as
in § 9.3 of this chapter.
(m) An interoperable video
conferencing service means a service
that provides real-time video
communications, including audio, to
enable users to share information of the
user’s choosing.
(n) The term manufacturer shall mean
an entity that makes or produces a
product, including equipment used for
advanced communications services,
including end user equipment, network
equipment, and software.
(o) The term network equipment shall
mean equipment facilitating the use of
a computer network, including routers,
network interface cards, networking
cables, modems, and other related
hardware.
(p) The term nominal cost in regard to
accessibility and usability solutions
shall mean small enough so as to
generally not be a factor in the
consumer’s decision to acquire a
product or service that the consumer
otherwise desires.
(q) A non-interconnected VoIP service
is a service that:
(1) Enables real-time voice
communications that originate from or
terminate to the user’s location using
Internet protocol or any successor
protocol; and
(2) Requires Internet protocolcompatible customer premises
equipment (CPE); and
(3) Is not an interconnected VoIP
service.
(r) The term peripheral devices shall
mean devices employed in connection
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with equipment, including software,
covered by this part to translate,
enhance, or otherwise transform
advanced communications services into
a form accessible to individuals with
disabilities.
(s) The term proprietary technology
shall mean hardware, software, and
services such as devices, Internet
service, and software applications, that
are unique and legally owned, or for
which a copyright or license is held, by
an entity that does not offer such
technology free or on an open source
basis.
(t) The term service provider shall
mean a provider of advanced
communications services that are
offered in or affecting interstate
commerce, including a provider of
applications and services that can be
used for advanced communications
services and that can be accessed (i.e.,
downloaded or run) by users over a
service provider’s network.
(u) The term software shall mean
computer programs, procedures, rules,
and related data and documentation that
direct the use and operation of a
computer or related device and instruct
it to perform a given task or function.
(v) The term specialized customer
premises equipment shall mean
customer premise equipment which is
commonly used by individuals with
disabilities to achieve access.
(w) The term usable shall have the
meaning provided in § 8.6(c).
Subpart C—Implementation
Requirements—What Must Covered
Entities Do?
§ 8.5
Obligations.
(a) General Obligations. (1) With
respect to equipment manufactured after
the effective date of the regulations, a
manufacturer of equipment used for
advanced communications services,
including end user equipment, network
equipment, and software, must ensure
that the equipment and software that
such manufacturer offers for sale or
otherwise distributes in interstate
commerce shall be accessible to and
usable by individuals with disabilities,
unless such requirements are not
achievable
(2) With respect to services provided
after the effective date of the
regulations, a provider of advanced
communications services must ensure
that services offered by such provider in
or affecting interstate commerce are
accessible to and usable by individuals
with disabilities, unless such
requirements are not achievable.
(3) If accessibility is not achievable
either by building it in or by using third
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13839
party accessibility solutions, then a
manufacturer or service provider shall
ensure that its equipment or service is
compatible with existing peripheral
devices or specialized customer
premises equipment.
(4) Providers of advanced
communications services shall not
install network features, functions, or
capabilities that impede accessibility or
usability.
(5) Advanced communications
services and the equipment and
networks used with these services may
not impair or impede the accessibility of
information content when accessibility
has been incorporated into that content
for transmission through such services,
equipment or networks.
(b) Product design, development, and
evaluation. (1) Manufacturers and
service providers must consider
performance objectives set forth in § 8.7
at the design stage as early and as
consistently as possible and must
implement such evaluation to the extent
that it is achievable.
(2) Manufacturers and service
providers must identify barriers to
accessibility and usability as part of
such evaluation.
(c) Information Pass Through.
Equipment used for advanced
communications services, including end
user equipment, network equipment,
and software must pass through crossmanufacturer, nonproprietary, industrystandard codes, translation protocols,
formats or other information necessary
to provide advanced communications
services in an accessible format, if
achievable. Signal compression
technologies shall not remove
information needed for access or shall
restore it upon decompression.
(d) Information, documentation, and
training. Manufacturers and service
providers must ensure access to
information and documentation they
provide to customers, if achievable.
Such information and documentation
includes user guides, bills, installation
guides for end user devices, and product
support communications, in alternate
formats, as needed. The requirement to
provide access to information also
includes ensuring that individuals with
disabilities can access, at no extra cost,
call centers and customer support
regarding both the product generally
and the accessibility features of the
product.
§ 8.6
Performance objectives.
(a) Generally—Manufacturers and
service providers shall ensure that
equipment and services covered by this
part are accessible, usable, and
compatible as those terms are defined in
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paragraphs (b) through (d) of this
section.
(b) Accessible—The term accessible
shall mean that:
(1) Input, control, and mechanical
functions shall be locatable, identifiable,
and operable in accordance with each of
the following, assessed independently:
(i) Operable without vision. Provide at
least one mode that does not require
user vision.
(ii) Operable with low vision and
limited or no hearing. Provide at least
one mode that permits operation by
users with visual acuity between 20/70
and 20/200, without relying on audio
output.
(iii) Operable with little or no color
perception. Provide at least one mode
that does not require user color
perception.
(iv) Operable without hearing.
Provide at least one mode that does not
require user auditory perception.
(v) Operable with limited manual
dexterity. Provide at least one mode that
does not require user fine motor control
or simultaneous actions.
(vi) Operable with limited reach and
strength. Provide at least one mode that
is operable with user limited reach and
strength.
(vii) Operable with a Prosthetic
Device. Controls shall be operable
without requiring body contact or close
body proximity.
(viii) Operable without timedependent controls. Provide at least one
mode that does not require a response
time or allows response time to be bypassed or adjusted by the user over a
wide range.
(ix) Operable without speech. Provide
at least one mode that does not require
user speech.
(x) Operable with limited cognitive
skills. Provide at least one mode that
minimizes the cognitive, memory,
language, and learning skills required of
the user.
(2) All information necessary to
operate and use the product, including
but not limited to, text, static or
dynamic images, icons, labels, sounds,
or incidental operating cues, [shall]
comply with each of the following,
assessed independently:
(i) Availability of visual information.
Provide visual information through at
least one mode in auditory form.
(ii) Availability of visual information
for low vision users. Provide visual
information through at least one mode
to users with visual acuity between 20/
70 and 20/200 without relying on audio.
(iii) Access to moving text. Provide
moving text in at least one static
presentation mode at the option of the
user.
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(iv) Availability of auditory
information. Provide auditory
information through at least one mode
in visual form and, where appropriate,
in tactile form.
(v) Availability of auditory
information for people who are hard of
hearing. Provide audio or acoustic
information, including any auditory
feedback tones that are important for the
use of the product, through at least one
mode in enhanced auditory fashion (i.e.,
increased amplification, increased
signal-to-noise ratio, or combination).
(vi) Prevention of visually-induced
seizures. Visual displays and indicators
shall minimize visual flicker that might
induce seizures in people with
photosensitive epilepsy.
(vii) Availability of audio cutoff.
Where a product delivers audio output
through an external speaker, provide an
industry standard connector for
headphones or personal listening
devices (e.g., phone-like handset or
earcup) which cuts off the speaker(s)
when used.
(viii) Non-interference with hearing
technologies. Reduce interference to
hearing technologies (including hearing
aids, cochlear implants, and assistive
listening devices) to the lowest possible
level that allows a user to utilize the
product.
(ix) Hearing aid coupling. Where a
product delivers output by an audio
transducer which is normally held up to
the ear, provide a means for effective
wireless coupling to hearing aids.
(c) Usable: The term usable shall
mean that individuals with disabilities
have access to the full functionality and
documentation for the product,
including instructions, product
information (including accessible
feature information), documentation
and technical support functionally
equivalent to that provided to
individuals without disabilities.
(d) Compatible: The term compatible
shall mean compatible with peripheral
devices and specialized customer
premises equipment, and in compliance
with the following provisions, as
applicable:
(1) External electronic access to all
information and control mechanisms.
Information needed for the operation of
products (including output, alerts,
icons, on-line help, and documentation)
shall be available in a standard
electronic text format on a crossindustry standard port and all input to
and control of a product shall allow for
real time operation by electronic text
input into a cross-industry standard
external port and in cross-industry
standard format. The cross-industry
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standard port shall not require
manipulation of a connector by the user.
(2) Connection point for external
audio processing devices. Products
providing auditory output shall provide
the auditory signal at a standard signal
level through an industry standard
connector.
(3) TTY connectability. Products that
provide a function allowing voice
communication and which do not
themselves provide a TTY functionality
shall provide a standard non-acoustic
connection point for TTYs. It shall also
be possible for the user to easily turn
any microphone on and off to allow the
user to intermix speech with TTY use.
(4) TTY signal compatibility.
Products, including those providing
voice communication functionality,
shall support use of all crossmanufacturer non-proprietary standard
signals used by TTYs.
§§ 8.7–8.15
[Reserved]
Subpart D—Recordkeeping and
Enforcement
§ 8.16
Generally.
(a) The rules in this subpart regarding
recordkeeping and enforcement are
applicable to all manufacturers and
service providers that are subject to the
requirements of sections 255, 716, and
718 of the Act.
(b) The requirements set forth in
§ 8.17 of this subpart shall be effective
[DATE ONE YEAR AFTER THE
EFFECTIVE DATE OF THE FINAL
RULE].
§ 8.17
Recordkeeping.
(a) Each manufacturer and service
provider subject to sections 255, 716, or
718 of the Act, must maintain, in the
ordinary course of business and for a
reasonable period, records of the efforts
taken by such manufacturer or provider
to implement sections 255, 716, and
718, as applicable, including:
(1) Information about the
manufacturer’s or service provider’s
efforts to consult with individuals with
disabilities;
(2) Descriptions of the accessibility
features of its products and services;
and
(3) Information about the
compatibility of its products and
services with peripheral devices or
specialized customer premise
equipment commonly used by
individuals with disabilities to achieve
access.
(b) An officer of each manufacturer
and service provider subject to section
255, 716, or 718 of the Act, must sign
and file an annual compliance
certificate with the Commission. The
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officer must state in the certificate that
he or she has personal knowledge that
the manufacturer or service provider has
established operating procedures that
are adequate to ensure compliance with
the rules in this subpart and that records
are being kept in accordance with this
section. The certificate shall identify the
agent designated for service pursuant to
§ 8.20(b) of this subpart and provide
contact information for this agent.
(c) Upon the service of a complaint,
formal or informal, on a manufacturer or
service provider under this section, a
copy of the records maintained by the
manufacturer or service provider that
are directly relevant to the equipment or
service that is the subject of the
complaint shall be provided to the
Commission in accordance with
§ 8.21(a) of this subpart. Requests for
confidential treatment of documents or
information submitted under this
section may be filed in accordance with
§ 0.459 of this chapter.
(d) In response to a filed formal or
informal complaint, a manufacturer or
service provider may, instead of
providing a duplicate document, record
or other information directly related to
the equipment or service that is the
subject of the complaint, direct the
Commission to documents or records
already in the Commission’s possession
by providing sufficient specificity for
Commission staff to locate the relevant
record or document or portion thereof,
including (title of proceeding or report,
date, page/para. #s, etc.).
§ 8.18
Informal or formal complaints.
Complaints against manufacturers or
service providers, as defined under this
subpart, for alleged violations of this
subpart may be either informal or
formal.
srobinson on DSKHWCL6B1PROD with PROPOSALS3
§ 8.19 Informal complaints; form and
content.
(a) An informal complaint alleging a
violation of sections 255, 716 or 718 of
the Act or this chapter may be
transmitted to the Commission via any
reasonable means, e.g., letter, facsimile
transmission, telephone (202–418–2517
(voice); 202–418–2922 (TTY)), Internete-mail (dro@fcc.gov), audio-cassette
recording, and Braille.
(b) An informal complaint shall
include:
(1) The name, address, e-mail address,
and telephone number of the
complainant;
(2) The name and address of the
manufacturer or service provider
defendant against whom the complaint
is made;
(3) The date or dates on which the
complainant or person on whose behalf
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the complaint is being filed either
purchased, acquired, or used or
attempted to purchase, acquire, or use
the equipment or service about which
the complaint is being made;
(4) A complete statement of fact
explaining why the complainant
contends that the defendant
manufacturer or provider is in violation
of section 255, 716 or 718 of the Act or
this chapter, including details regarding
the service or equipment and the relief
requested, and all documentation that
supports the complainant’s contention;
(5) The complainant’s preferred
format or method of response to the
complaint by the Commission and
defendant (e.g., letter, facsimile
transmission, telephone (voice/TRS/
TTY), Internet e-mail, audio-cassette
recording, Braille; or some other method
that will best accommodate the
complainant’s disability, if any; and
(6) Any other information that is
required by the Commission’s
accessibility complaint form.
§ 8.20 Procedure; designation of agents
for service.
(a) The Commission shall promptly
forward any informal complaint meeting
the requirements of § 8.19 of this
subpart to each manufacturer and
service provider named in or
determined by the staff to be implicated
by the complaint.
(b) To ensure prompt and effective
service of informal and formal
complaints filed under this subpart,
every manufacturer and service provider
subject to the requirements of section
255, 716, or 718 of the Act and this
subpart, shall designate an agent, and
may designate additional agents if it so
chooses, upon whom service may be
made of all notices, inquiries, orders,
decisions, and other pronouncements of
the Commission in any matter before the
Commission. Such designation shall
include, for the manufacturer or the
service provider, a name or department
designation, business address,
telephone number, and, if available TTY
number, facsimile number, and Internet
e-mail address.
§ 8.21 Answers and replies to informal
complaints.
(a) Any manufacturer or service
provider to whom an informal
complaint is directed by the
Commission under this subpart shall
file and serve an answer. The answer
shall:
(1) Be filed with the Commission and
served on the complainant within
twenty days of service of the complaint,
unless the Commission or its staff
specifies another time period;
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(2) Respond specifically to each
material allegation in the complaint;
(3) Set forth the steps taken by the
manufacturer or service provider to
make the product or service accessible
and usable;
(4) Set forth the procedures and
processes used by the manufacturer or
service provider to evaluate whether it
was achievable to make the product or
service accessible and usable;
(5) Set forth the names, titles, and
responsibilities of each decision maker
in the evaluation process;
(6) Set forth the manufacturer’s basis
for determining that it was not
achievable to make the product or
service accessible and usable;
(7) Provide all documents supporting
the manufacturer’s or service provider’s
conclusion that it was not achievable to
make the product or service accessible
and usable;
(8) Include a certification by an officer
of the manufacturer or service provider
that it was not achievable to make the
product or service accessible and
usable;
(9) Set forth any claimed defenses;
(10) Set forth any remedial actions
already taken or proposed alternative
relief without any prejudice to any
denials or defenses raised;
(11) Provide any other information or
materials specified by the Commission
as relevant to its consideration of the
complaint; and
(12) Must be prepared or formatted in
the manner requested by the
Commission and the complainant,
unless otherwise permitted by the
Commission for good cause shown.
(b) The complainant may file and
serve a reply. The reply shall:
(1) Be served on the Commission and
the complainant within ten days after
service of answer, unless otherwise
directed by the Commission;
(2) Be responsive to matters contained
in the answer and shall not contain new
matters.
§ 8.22 Review and disposition of informal
complaints.
(a) The Commission will investigate
the allegations in any informal
complaint filed that satisfies the
requirements of § 8.18(b) of this subpart,
and, within 180 days after the date on
which such complaint was filed with
the Commission, issue an order finding
whether the manufacturer or service
provider that is the subject of the
complaint violated section 255, 716, or
718 of the Act, or the Commission’s
implementing rules, and provide a basis
therefor, unless such complaint is
resolved before that time.
(b) If the Commission determines in
an order issued pursuant to paragraph
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(a) of this section that the manufacturer
or service provider violated section 255,
716, or 718 of the Act, or the
Commission’s implementing rules, the
Commission may, in such order, or in a
subsequent order:
(1) Direct the manufacturer or service
provider to bring the service, or in the
case of a manufacturer, the next
generation of the equipment or device,
into compliance with the requirements
of sections 255, 716, or 718 of the Act,
and the Commission’s rules, within a
reasonable period of time; and
(2) Take such other enforcement
action as the Commission is authorized
and as it deems appropriate.
(c) Any manufacturer or service
provider that is the subject of an order
issued pursuant to paragraph (b)(1) of
this section shall have a reasonable
opportunity, as established by the
Commission, to comment on the
Commission’s proposed remedial action
before the Commission issues a final
order with respect to that action.
srobinson on DSKHWCL6B1PROD with PROPOSALS3
§ 8.23
General pleading requirements.
Formal complaint proceedings are
generally resolved on a written record
consisting of a complaint, answer, and
joint statement of stipulated facts,
disputed facts and key legal issues,
along with all associated affidavits,
exhibits and other attachments.
Commission proceedings may also
require or permit other written
submissions such as briefs, written
interrogatories, and other
supplementary documents or pleadings.
(a) Pleadings must be clear, concise,
and explicit. All matters concerning a
claim, defense or requested remedy,
including damages, should be pleaded
fully and with specificity.
(b) Pleadings must contain facts
which, if true, are sufficient to
constitute a violation of the Act or
Commission order or regulation, or a
defense to such alleged violation.
(c) Facts must be supported by
relevant documentation or affidavit.
(d) Legal arguments must be
supported by appropriate judicial,
Commission, or statutory authority.
(e) Opposing authorities must be
distinguished.
(f) Copies must be provided of all
non-Commission authorities relied upon
which are not routinely available in
national reporting systems, such as
unpublished decisions or slip opinions
of courts or administrative agencies.
(g) Parties are responsible for the
continuing accuracy and completeness
of all information and supporting
authority furnished in a pending
complaint proceeding. Information
submitted, as well as relevant legal
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authorities, must be current and
updated as necessary and in a timely
manner at any time before a decision is
rendered on the merits of the complaint.
(h) All statements purporting to
summarize or explain Commission
orders or policies must cite, in standard
legal form, the Commission ruling upon
which such statements are based.
(i) Pleadings shall identify the name,
address, telephone number, and
facsimile transmission number for either
the filing party’s attorney or, where a
party is not represented by an attorney,
the filing party.
§ 8.24 Format and content of formal
complaints.
(a) Subject to paragraph (e) of this
section governing supplemental
complaints filed pursuant to § 8.25 of
this subpart, a formal complaint shall
contain:
(1) The name of each complainant and
defendant;
(2) The occupation, address and
telephone number of each complainant
and, to the extent known, each
defendant;
(3) The name, address, and telephone
number of complainant’s attorney, if
represented by counsel;
(4) Citation to the section of the
Communications Act and/or order and/
or regulation of the Commission alleged
to have been violated.
(5) A complete statement of facts
which, if proven true, would constitute
such a violation. All material facts must
be supported, pursuant to the
requirements of § 8.30(c) of this subpart
and paragraph (a)(11) of this section, by
relevant affidavits and documentation,
including copies of relevant written
agreements, offers, counter-offers,
denials, or other related
correspondence. The statement of facts
shall include a detailed explanation of
the manner and time period in which a
defendant has allegedly violated the
Act, Commission order, or Commission
rule in question, including a full
identification or description of the
communications, transmissions,
services, or other carrier conduct
complained of and the nature of any
injury allegedly sustained by the
complainant. Assertions based on
information and belief are expressly
prohibited unless made in good faith
and accompanied by an affidavit
explaining the basis for the plaintiff’s
belief and why the complainant could
not reasonably ascertain the facts from
the defendant or any other source;
(6) Proposed findings of fact,
conclusions of law, and legal analysis
relevant to the claims and arguments set
forth in the complaint;
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(7) The relief sought, including
recovery of damages and the amount of
damages claimed, if known;
(8) Certification that the complainant
has, in good faith, discussed or
attempted to discuss the possibility of
settlement with each defendant prior to
the filing of the formal complaint. Such
certification shall include a statement
that, prior to the filing of the complaint,
the complainant mailed a certified letter
outlining the allegations that form the
basis of the complaint it anticipated
filing with the Commission to the
defendant carrier or one of the
defendant’s registered agents for service
of process that invited a response within
a reasonable period of time and a brief
summary of all additional steps taken to
resolve the dispute prior to the filing of
the formal complaint. If no additional
steps were taken, such certificate shall
state the reason(s) why the complainant
believed such steps would be fruitless;
(9) Whether a separate action has been
filed with the Commission, any court, or
other government agency that is based
on the same claim or same set of facts,
in whole or in part, or whether the
complaint seeks prospective relief
identical to the relief proposed or at
issue in a notice-and-comment
proceeding that is concurrently before
the Commission;
(10) An information designation
containing:
(i) The name, address, and position of
each individual believed to have
firsthand knowledge of the facts alleged
with particularity in the complaint,
along with a description of the facts
within any such individual’s
knowledge;
(ii) A description of all documents,
data compilations and tangible things in
the complainant’s possession, custody,
or control, that are relevant to the facts
alleged with particularity in the
complaint. Such description shall
include for each document:
(A) The date it was prepared, mailed,
transmitted, or otherwise disseminated;
(B) The author, preparer, or other
source;
(C) The recipient(s) or intended
recipient(s);
(D) Its physical location; and
(E) A description of its relevance to
the matters contained in the complaint;
and
(iii) A complete description of the
manner in which the complainant
identified all persons with information
and designated all documents, data
compilations and tangible things as
being relevant to the dispute, including,
but not limited to, identifying the
individual(s) that conducted the
information search and the criteria used
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to identify such persons, documents,
data compilations, tangible things, and
information;
(11) Copies of all affidavits,
documents, data compilations and
tangible things in the complainant’s
possession, custody, or control, upon
which the complainant relies or intends
to rely to support the facts alleged and
legal arguments made in the complaint;
(12) A completed Formal Complaint
Intake Form;
(13) A declaration, under penalty of
perjury, by the complainant or
complainant’s counsel describing the
amount, method, and the complainant’s
10-digit FCC Registration Number, if
any;
(14) A certificate of service; and
(15) A FCC Registration Number is
required under part 1, subpart W.
Submission of a complaint without the
FCC Registration Number as required by
part 1, subpart W will result in
dismissal of the complaint.
(b) The following format may be used
in cases to which it is applicable, with
such modifications as the circumstances
may render necessary:
srobinson on DSKHWCL6B1PROD with PROPOSALS3
Before the Federal Communications
Commission, Washington, DC 20554
In the matter of
Complainant,
v.
Defendant.
File No. (To be inserted by the Enforcement
Bureau)
Complaint
To: The Commission.
The complainant (here insert full name of
each complainant and, if a corporation, the
corporate title of such complainant) shows
that:
(1) (Here state post office address, and
telephone number of each complainant).
(2) (Here insert the name, and, to the extent
known, address and telephone number of
defendants).
(3) (Here insert fully and clearly the specific
act or thing complained of, together with
such facts as are necessary to give a full
understanding of the matter, including
relevant legal and documentary support).
Wherefore, complainant asks (here state
specifically the relief desired).
(Date)
(Name of each complainant)
(Name, address, and telephone number of
attorney, if any)
(c) The complainant may petition the
staff, pursuant to § 1.3 of this chapter,
for a waiver of any of the requirements
of this section. Such waiver may be
granted for good cause shown.
(d) Supplemental complaints:
(1) Supplemental complaints filed
pursuant to § 8.25 shall conform to the
requirements set out in this section and
§ 8.23 of this subpart, except that the
requirements in §§ 8.23(b), 8.24(a)(4),
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(a)(5), (a)(8), (a)(9), (a)(12), and (a)(13) of
this subpart shall not apply to such
supplemental complaints;
(2) In addition, supplemental
complaints filed pursuant to § 8.25 of
this subpart shall contain a complete
statement of facts which, if proven true,
would support complainant’s
calculation of damages for each category
of damages for which recovery is
sought. All material facts must be
supported, pursuant to the requirements
of § 8.23(c) of this subpart and
paragraph (a)(11) of this section, by
relevant affidavits and other
documentation. The statement of facts
shall include a detailed explanation of
the matters relied upon, including a full
identification or description of the
communications, transmissions,
services, or other matters relevant to the
calculation of damages and the nature of
any injury allegedly sustained by the
complainant. Assertions based on
information and belief are expressly
prohibited unless made in good faith
and accompanied by an affidavit
explaining the basis for the
complainant’s belief and why the
complainant could not reasonably
ascertain the facts from the defendant or
any other source;
(3) Supplemental complaints filed
pursuant to § 8.25 of this subpart shall
contain a certification that the
complainant has, in good faith,
discussed or attempted to discuss the
possibility of settlement with respect to
damages for which recovery is sought
with each defendant prior to the filing
of the supplemental complaint. Such
certification shall include a statement
that, no later than 30 days after the
release of the liability order, the
complainant mailed a certified letter to
the primary individual who represented
the defendant carrier during the initial
complaint proceeding outlining the
allegations that form the basis of the
supplemental complaint it anticipates
filing with the Commission and inviting
a response from the carrier within a
reasonable period of time. The
certification shall also contain a brief
summary of all additional steps taken to
resolve the dispute prior to the filing of
the supplemental complaint. If no
additional steps were taken, such
certification shall state the reason(s)
why the complainant believed such
steps would be fruitless.
§ 8.25
Damages.
(a) A complaint against a common
carrier may seek damages. If a
complainant wishes to recover damages,
the complaint must contain a clear and
unequivocal request for damages.
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(b) If a complainant wishes a
determination of damages to be made in
the same proceeding as the
determinations of liability and
prospective relief, the complaint must
contain the allegations and information
required by paragraph (h) of this
section.
(c) Notwithstanding paragraph (b) of
this section, in any proceeding to which
no statutory deadline applies, if the
Commission decides that a
determination of damages would best be
made in a proceeding that is separate
from and subsequent to the proceeding
in which the determinations of liability
and prospective relief are made, the
Commission may at any time order that
the initial proceeding will determine
only liability and prospective relief, and
that a separate, subsequent proceeding
initiated in accordance with paragraph
(e) of this section will determine
damages.
(d) If a complainant wishes a
determination of damages to be made in
a proceeding that is separate from and
subsequent to the proceeding in which
the determinations of liability and
prospective relief are made, the
complainant must:
(1) Comply with paragraph (a) of this
section, and
(2) State clearly and unequivocally
that the complainant wishes a
determination of damages to be made in
a proceeding that is separate from and
subsequent to the proceeding in which
the determinations of liability and
prospective relief will be made.
(e) If a complainant proceeds
pursuant to paragraph (d) of this
section, or if the Commission invokes its
authority under paragraph (c) of this
section, the complainant may initiate a
separate proceeding to obtain a
determination of damages by filing a
supplemental complaint that complies
with § 8.24(d) of this subpart and
paragraph (h) of this section within
sixty days after public notice (as defined
in § 1.4(b) of this chapter) of a decision
that contains a finding of liability on the
merits of the original complaint.
(f) If a complainant files a
supplemental complaint for damages in
accordance with paragraph (e) of this
section, the supplemental complaint
shall be deemed, for statutory
limitations purposes, to relate back to
the date of the original complaint.
(g) Where a complainant chooses to
seek the recovery of damages upon a
supplemental complaint in accordance
with the requirements of paragraph (e)
of this section, the Commission will
resolve the separate, preceding liability
complaint within any applicable
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complaint resolution deadlines
contained in the Act.
(h) In all cases in which recovery of
damages is sought, it shall be the
responsibility of the complainant to
include, within either the complaint or
supplemental complaint for damages
filed in accordance with paragraph (e) of
this section, either:
(1) A computation of each and every
category of damages for which recovery
is sought, along with an identification of
all relevant documents and materials or
such other evidence to be used by the
complainant to determine the amount of
such damages; or
(2) An explanation of:
(i) The information not in the
possession of the complaining party that
is necessary to develop a detailed
computation of damages;
(ii) Why such information is
unavailable to the complaining party;
(iii) The factual basis the complainant
has for believing that such evidence of
damages exists;
(iv) A detailed outline of the
methodology that would be used to
create a computation of damages with
such evidence.
(i) Where a complainant files a
supplemental complaint for damages in
accordance with paragraph (e) of this
section, the following procedures may
apply:
(1) Issues concerning the amount, if
any, of damages may be either
designated by the Enforcement Bureau
for hearing before, or, if the parties
agree, submitted for mediation to, a
Commission Administrative Law Judge.
Such Administrative Law Judge shall be
chosen in the following manner:
(i) By agreement of the parties and the
Chief Administrative Law Judge; or
(ii) In the absence of such agreement,
the Chief Administrative Law Judge
shall designate the Administrative Law
Judge.
(2) The Commission may, in its
discretion, order the defendant either to
post a bond for, or deposit into an
interest bearing escrow account, a sum
equal to the amount of damages which
the Commission finds, upon
preliminary investigation, is likely to be
ordered after the issue of damages is
fully litigated, or some lesser sum which
may be appropriate, provided the
Commission finds that the grant of this
relief is favored on balance upon
consideration of the following factors:
(i) The complainant’s potential
irreparable injury in the absence of such
deposit;
(ii) The extent to which damages can
be accurately calculated;
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(iii) The balance of the hardships
between the complainant and the
defendant; and
(iv) Whether public interest
considerations favor the posting of the
bond or ordering of the deposit.
(3) The Commission may, in its
discretion, suspend ongoing damages
proceedings for fourteen days, to
provide the parties with a time within
which to pursue settlement negotiations
and/or alternative dispute resolution
procedures.
(4) The Commission may, in its
discretion, end adjudication of damages
with a determination of the sufficiency
of a damages computation method or
formula. No such method or formula
shall contain a provision to offset any
claim of the defendant against the
complainant. The parties shall negotiate
in good faith to reach an agreement on
the exact amount of damages pursuant
to the Commission-mandated method or
formula. Within thirty days of the
release date of the damages order,
parties shall submit jointly to the
Commission either:
(i) A statement detailing the parties’
agreement as to the amount of damages;
(ii) A statement that the parties are
continuing to negotiate in good faith
and a request that the parties be given
an extension of time to continue
negotiations; or
(iii) A statement detailing the bases
for the continuing dispute and the
reasons why no agreement can be
reached.
(j) Except where otherwise indicated,
the rules governing initial formal
complaint proceedings govern
supplemental formal complaint
proceedings, as well.
§ 8.26 Joinder of complainants and causes
of action.
(a) Two or more complainants may
join in one complaint if their respective
causes of action are against the same
defendant and concern substantially the
same facts and alleged violation of the
Communications Act.
(b) Two or more grounds of complaint
involving the same principle, subject, or
statement of facts may be included in
one complaint, but should be separately
stated and numbered.
§ 8.27
Answers.
(a) Any defendant upon whom copy
of a formal complaint is served shall
answer such complaint in the manner
prescribed under this section within
twenty days of service of the formal
complaint by the complainant, unless
otherwise directed by the Commission.
(b) The answer shall advise the
complainant and the Commission fully
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and completely of the nature of any
defense, and shall respond specifically
to all material allegations of the
complaint. Every effort shall be made to
narrow the issues in the answer. The
defendant shall state concisely its
defense to each claim asserted, admit or
deny the averments on which the
complainant relies, and state in detail
the basis for admitting or denying such
averment. General denials are
prohibited. Denials based on
information and belief are expressly
prohibited unless made in good faith
and accompanied by an affidavit
explaining the basis for the defendant’s
belief and why the defendant could not
reasonably ascertain the facts from the
complainant or any other source. If the
defendant is without knowledge or
information sufficient to form a belief as
to the truth of an averment, the
defendant shall so state and this has the
effect of a denial. When a defendant
intends in good faith to deny only part
of an averment, the defendant shall
specify so much of it as is true and shall
deny only the remainder. The defendant
may deny the allegations of the
complaint as specific denials of either
designated averments or paragraphs.
(c) The answer shall contain proposed
findings of fact, conclusions of law, and
legal analysis relevant to the claims and
arguments set forth in the answer.
(d) Averments in a complaint or
supplemental complaint filed pursuant
to § 8.25 of this subpart are deemed to
be admitted when not denied in the
answer.
(e) Affirmative defenses to allegations
contained in the complaint shall be
specifically captioned as such and
presented separately from any denials
made in accordance with paragraph (c)
of this section.
(f) The answer shall include an
information designation containing:
(1) The name, address, and position of
each individual believed to have
firsthand knowledge of the facts alleged
with particularity in the answer, along
with a description of the facts within
any such individual’s knowledge;
(2) A description of all documents,
data compilations and tangible things in
the defendant’s possession, custody, or
control, that are relevant to the facts
alleged with particularity in the answer.
Such description shall include for each
document:
(i) The date it was prepared, mailed,
transmitted, or otherwise disseminated;
(ii) The author, preparer, or other
source;
(iii) The recipient(s) or intended
recipient(s);
(iv) Its physical location; and
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(v) A description of its relevance to
the matters in dispute.
(3) A complete description of the
manner in which the defendant
identified all persons with information
and designated all documents, data
compilations and tangible things as
being relevant to the dispute, including,
but not limited to, identifying the
individual(s) that conducted the
information search and the criteria used
to identify such persons, documents,
data compilations, tangible things, and
information.
(g) The answer shall attach copies of
all affidavits, documents, data
compilations and tangible things in the
defendant’s possession, custody, or
control, upon which the defendant
relies or intends to rely to support the
facts alleged and legal arguments made
in the answer.
(h) The answer shall contain
certification that the defendant has, in
good faith, discussed or attempted to
discuss, the possibility of settlement
with the complainant prior to the filing
of the formal complaint. Such
certification shall include a brief
summary of all steps taken to resolve
the dispute prior to the filing of the
formal complaint. If no such steps were
taken, such certificate shall state the
reason(s) why the defendant believed
such steps would be fruitless;
(i) The defendant may petition the
staff, pursuant to § 1.3 of this chapter,
for a waiver of any of the requirements
of this section. Such waiver may be
granted for good cause shown.
§ 8.28 Cross-complaints and
counterclaims.
Cross-complaints seeking any relief
within the jurisdiction of the
Commission against any party
(complainant or defendant) to that
proceeding are expressly prohibited.
Any claim that might otherwise meet
the requirements of a cross-complaint
may be filed as a separate complaint in
accordance with §§ 8.23 through 8.37 of
this subpart. For purposes of this
subpart, the term ‘‘cross-complaint’’
shall include counterclaims.
srobinson on DSKHWCL6B1PROD with PROPOSALS3
§ 8.29
Replies.
(a) Within three days after service of
an answer containing affirmative
defenses presented in accordance with
the requirements of § 8.27(e) of this
subpart, a complainant may file and
serve a reply containing statements of
relevant, material facts and legal
arguments that shall be responsive to
only those specific factual allegations
and legal arguments made by the
defendant in support of its affirmative
defenses. Replies which contain other
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allegations or arguments will not be
accepted or considered by the
Commission.
(b) Failure to reply to an affirmative
defense shall be deemed an admission
of such affirmative defense and of any
facts supporting such affirmative
defense that are not specifically
contradicted in the complaint.
(c) The reply shall contain proposed
findings of fact, conclusions of law, and
legal analysis relevant to the claims and
arguments set forth in the reply.
(d) The reply shall include an
information designation containing:
(1) The name, address and position of
each individual believed to have
firsthand knowledge about the facts
alleged with particularity in the reply,
along with a description of the facts
within any such individual’s
knowledge.
(2) A description of all documents,
data compilations and tangible things in
the complainant’s possession, custody,
or control that are relevant to the facts
alleged with particularity in the reply.
Such description shall include for each
document:
(i) The date prepared, mailed,
transmitted, or otherwise disseminated;
(ii) The author, preparer, or other
source;
(iii) The recipient(s) or intended
recipient(s);
(iv) Its physical location; and
(v) A description of its relevance to
the matters in dispute.
(3) A complete description of the
manner in which the complainant
identified all persons with information
and designated all documents, data
compilations and tangible things as
being relevant to the dispute, including,
but not limited to, identifying the
individual(s) that conducted the
information search and the criteria used
to identify such persons, documents,
data compilations, tangible things, and
information;
(e) The reply shall attach copies of all
affidavits, documents, data compilations
and tangible things in the complainant’s
possession, custody, or control upon
which the complainant relies or intends
to rely to support the facts alleged and
legal arguments made in the reply.
(f) The complainant may petition the
staff, pursuant to § 1.3 of this chapter,
for a waiver of any of the requirements
of this section. Such waiver may be
granted for good cause shown.
§ 8.30
Motions.
(a) A request to the Commission for an
order shall be by written motion, stating
with particularity the grounds and
authority therefor, and setting forth the
relief or order sought.
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(b) All dispositive motions shall
contain proposed findings of fact and
conclusions of law, with supporting
legal analysis, relevant to the contents of
the pleading. Motions to compel
discovery must contain a certification
by the moving party that a good faith
attempt to resolve the dispute was made
prior to filing the motion. All facts
relied upon in motions must be
supported by documentation or
affidavits pursuant to the requirements
of § 8.23(c) of this subpart, except for
those facts of which official notice may
be taken.
(c) The moving party shall provide a
proposed order for adoption, which
appropriately incorporates the basis
therefor, including proposed findings of
fact and conclusions of law relevant to
the pleading. The proposed order shall
be clearly marked as a ‘‘Proposed
Order.’’ The proposed order shall be
submitted both as a hard copy and on
computer disk in accordance with the
requirements of § 8.36(d) of this subpart.
Where appropriate, the proposed order
format should conform to that of a
reported FCC order.
(d) Oppositions to any motion shall be
accompanied by a proposed order for
adoption, which appropriately
incorporates the basis therefor,
including proposed findings of fact and
conclusions of law relevant to the
pleading. The proposed order shall be
clearly captioned as a ‘‘Proposed Order.’’
The proposed order shall be submitted
both as a hard copy and on computer
disk in accordance with the
requirements of § 8.36(d) of this subpart.
Where appropriate, the proposed order
format should conform to that of a
reported FCC order.
(e) Oppositions to motions may be
filed and served within five business
days after the motion is filed and served
and not after. Oppositions shall be
limited to the specific issues and
allegations contained in such motion;
when a motion is incorporated in an
answer to a complaint, the opposition to
such motion shall not address any
issues presented in the answer that are
not also specifically raised in the
motion. Failure to oppose any motion
may constitute grounds for granting of
the motion.
(f) No reply may be filed to an
opposition to a motion.
(g) Motions seeking an order that the
allegations in the complaint be made
more definite and certain are prohibited.
(h) Amendments or supplements to
complaints to add new claims or
requests for relief are prohibited. Parties
are responsible, however, for the
continuing accuracy and completeness
of all information and supporting
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authority furnished in a pending
complaint proceeding as required under
§ 8.23(g) of this subpart.
§ 8.31 Formal complaints not stating a
cause of action; defective pleadings.
(a) Any document purporting to be a
formal complaint which does not state
a cause of action under the
Communications Act or a Commission
rule or order will be dismissed. In such
case, any amendment or supplement to
such document will be considered a
new filing which must be made within
the statutory periods of limitations of
actions contained in section 415 of the
Communications Act.
(b) Any other pleading filed in a
formal complaint proceeding not in
conformity with the requirements of the
applicable rules in this part may be
deemed defective. In such case the
Commission may strike the pleading or
request that specified defects be
corrected and that proper pleadings be
filed with the Commission and served
on all parties within a prescribed time
as a condition to being made a part of
the record in the proceeding.
srobinson on DSKHWCL6B1PROD with PROPOSALS3
§ 8.32
Discovery.
(a) A complainant may file with the
Commission and serve on a defendant,
concurrently with its complaint, a
request for up to ten written
interrogatories. A defendant may file
with the Commission and serve on a
complainant, during the period starting
with the service of the complaint and
ending with the service of its answer, a
request for up to ten written
interrogatories. A complainant may file
with the Commission and serve on a
defendant, within three calendar days of
service of the defendant’s answer, a
request for up to five written
interrogatories. Subparts of any
interrogatory will be counted as separate
interrogatories for purposes of
compliance with this limit. Requests for
interrogatories filed and served
pursuant to this procedure may be used
to seek discovery of any non-privileged
matter that is relevant to the material
facts in dispute in the pending
proceeding, provided, however, that
requests for interrogatories filed and
served by a complainant after service of
the defendant’s answer shall be limited
in scope to specific factual allegations
made by the defendant in support of its
affirmative defenses. This procedure
may not be employed for the purpose of
delay, harassment or obtaining
information that is beyond the scope of
permissible inquiry related to the
material facts in dispute in the pending
proceeding.
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(b) Requests for interrogatories filed
and served pursuant to paragraph (a) of
this section shall contain a listing of the
interrogatories requested and an
explanation of why the information
sought in each interrogatory is both
necessary to the resolution of the
dispute and not available from any other
source.
(c) A responding party shall file with
the Commission and serve on the
propounding party any opposition and
objections to the requests for
interrogatories as follows:
(1) By the defendant, within ten
calendar days of service of the requests
for interrogatories served
simultaneously with the complaint and
within five calendar days of the requests
for interrogatories served following
service of the answer;
(2) By the complainant, within five
calendar days of service of the requests
for interrogatories; and
(3) In no event less than three
calendar days prior to the initial status
conference as provided for in § 8.35(a)
of this subpart.
(d) Commission staff will consider the
requests for interrogatories, properly
filed and served pursuant to paragraph
(a) of this section, along with any
objections or oppositions thereto,
properly filed and served pursuant to
paragraph (b) of this section, at the
initial status conference, as provided for
in § 8.35(a)(5) of this subpart, and at that
time determine the interrogatories, if
any, to which parties shall respond, and
set the schedule of such response.
(e) The interrogatories ordered to be
answered pursuant to paragraph (d) of
this section are to be answered
separately and fully in writing under
oath or affirmation by the party served,
or if such party is a public or private
corporation or partnership or
association, by any officer or agent who
shall furnish such information as is
available to the party. The answers shall
be signed by the person making them.
The answers shall be filed with the
Commission and served on the
propounding party.
(f) A propounding party asserting that
a responding party has provided an
inadequate or insufficient response to a
Commission-ordered discovery request
may file a motion to compel within ten
days of the service of such response, or
as otherwise directed by Commission
staff, pursuant to the requirements of
§ 8.30 of this subpart.
(g) The Commission may, in its
discretion, require parties to provide
documents to the Commission in a
scanned or other electronic format that
provides:
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(1) Indexing by useful identifying
information about the documents; and
(2) Technology that allows staff to
annotate the index so as to make the
format an efficient means of reviewing
the documents.
(h) The Commission may allow
additional discovery, including, but not
limited to, document production,
depositions and/or additional
interrogatories. In its discretion, the
Commission may modify the scope,
means and scheduling of discovery in
light of the needs of a particular case
and the requirements of applicable
statutory deadlines.
§ 8.33 Confidentiality of information
produced or exchanged by the parties.
(a) Any materials generated in the
course of a formal complaint proceeding
may be designated as proprietary by that
party if the party believes in good faith
that the materials fall within an
exemption to disclosure contained in
the Freedom of Information Act (FOIA),
5 U.S.C. 552(b)(1) through (9). Any party
asserting confidentiality for such
materials shall so indicate by clearly
marking each page, or portion thereof,
for which a proprietary designation is
claimed. If a proprietary designation is
challenged, the party claiming
confidentiality shall have the burden of
demonstrating, by a preponderance of
the evidence, that the material
designated as proprietary falls under the
standards for nondisclosure enunciated
in the FOIA.
(b) Materials marked as proprietary
may be disclosed solely to the following
persons, only for use in prosecuting or
defending a party to the complaint
action, and only to the extent necessary
to assist in the prosecution or defense of
the case:
(1) Counsel of record representing the
parties in the complaint action and any
support personnel employed by such
attorneys;
(2) Officers or employees of the
opposing party who are named by the
opposing party as being directly
involved in the prosecution or defense
of the case;
(3) Consultants or expert witnesses
retained by the parties;
(4) The Commission and its staff; and
(5) Court reporters and stenographers
in accordance with the terms and
conditions of this section.
(c) These individuals shall not
disclose information designated as
proprietary to any person who is not
authorized under this section to receive
such information, and shall not use the
information in any activity or function
other than the prosecution or defense in
the case before the Commission. Each
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individual who is provided access to the
information shall sign a notarized
statement affirmatively stating that the
individual has personally reviewed the
Commission’s rules and understands the
limitations they impose on the signing
party.
(d) No copies of materials marked
proprietary may be made except copies
to be used by persons designated in
paragraph (b) of this section. Each party
shall maintain a log recording the
number of copies made of all
proprietary material and the persons to
whom the copies have been provided.
(e) Upon termination of a formal
complaint proceeding, including all
appeals and petitions, all originals and
reproductions of any proprietary
materials, along with the log recording
persons who received copies of such
materials, shall be provided to the
producing party. In addition, upon final
termination of the complaint
proceeding, any notes or other work
product derived in whole or in part
from the proprietary materials of an
opposing or third party shall be
destroyed.
srobinson on DSKHWCL6B1PROD with PROPOSALS3
§ 8.34
Other required written submissions.
(a) The Commission may, in its
discretion, or upon a party’s motion
showing good cause, require the parties
to file briefs summarizing the facts and
issues presented in the pleadings and
other record evidence.
(b) Unless otherwise directed by the
Commission, all briefs shall include all
legal and factual claims and defenses
previously set forth in the complaint,
answer, or any other pleading submitted
in the proceeding. Claims and defenses
previously made but not reflected in the
briefs will be deemed abandoned. The
Commission may, in its discretion, limit
the scope of any briefs to certain
subjects or issues. A party shall attach
to its brief copies of all documents, data
compilations, tangible things, and
affidavits upon which such party relies
or intends to rely to support the facts
alleged and legal arguments made in its
brief and such brief shall contain a full
explanation of how each attachment is
relevant to the issues and matters in
dispute. All such attachments to a brief
shall be documents, data compilations
or tangible things, or affidavits made by
persons, that were identified by any
party in its information designations
filed pursuant to §§ 8.24(a)(10)(i),
(a)(10)(ii), 8.27(f)(1), (f)(2), and
8.29(d)(1), (d)(2) of this subpart. Any
other supporting documentation or
affidavits that is attached to a brief must
be accompanied by a full explanation of
the relevance of such materials and why
such materials were not identified in the
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information designations. These briefs
shall contain the proposed findings of
fact and conclusions of law which the
filing party is urging the Commission to
adopt, with specific citation to the
record, and supporting relevant
authority and analysis.
(c) In cases in which discovery is not
conducted, absent an order by the
Commission that briefs be filed, parties
may not submit briefs. If the
Commission does authorize the filing of
briefs in cases in which discovery is not
conducted, briefs shall be filed
concurrently by both the complainant
and defendant at such time as
designated by the Commission staff and
in accordance with the provisions of
this section.
(d) In cases in which discovery is
conducted, briefs shall be filed
concurrently by both the complainant
and defendant at such time designated
by the Commission staff.
(e) Briefs containing information
which is claimed by an opposing or
third party to be proprietary under
§ 8.33 of this subpart shall be submitted
to the Commission in confidence
pursuant to the requirements of § 0.459
of this chapter and clearly marked ‘‘Not
for Public Inspection.’’ An edited
version removing all proprietary data
shall also be filed with the Commission
for inclusion in the public file. Edited
versions shall be filed within five days
from the date the unedited brief is
submitted, and served on opposing
parties.
(f) Initial briefs shall be no longer than
twenty-five pages. Reply briefs shall be
no longer than ten pages. Either on its
own motion or upon proper motion by
a party, the Commission staff may
establish other page limits for briefs.
(g) The Commission may require the
parties to submit any additional
information it deems appropriate for a
full, fair, and expeditious resolution of
the proceeding, including affidavits and
exhibits.
(h) The parties shall submit a joint
statement of stipulated facts, disputed
facts, and key legal issues no later than
two business days prior to the initial
status conference, scheduled in
accordance with the provisions of
§ 8.35(a) of this subpart.
§ 8.35
Status conference.
(a) In any complaint proceeding, the
Commission may, in its discretion,
direct the attorneys and/or the parties to
appear before it for a status conference.
Unless otherwise ordered by the
Commission, an initial status conference
shall take place, at the time and place
designated by the Commission staff, ten
business days after the date the answer
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is due to be filed. A status conference
may include discussion of:
(1) Simplification or narrowing of the
issues;
(2) The necessity for or desirability of
additional pleadings or evidentiary
submissions;
(3) Obtaining admissions of fact or
stipulations between the parties as to
any or all of the matters in controversy;
(4) Settlement of all or some of the
matters in controversy by agreement of
the parties;
(5) Whether discovery is necessary
and, if so, the scope, type and schedule
for such discovery;
(6) The schedule for the remainder of
the case and the dates for any further
status conferences; and
(7) Such other matters that may aid in
the disposition of the complaint.
(b)(1) Parties shall meet and confer
prior to the initial status conference to
discuss:
(i) Settlement prospects;
(ii) Discovery;
(iii) Issues in dispute;
(iv) Schedules for pleadings;
(v) Joint statement of stipulated facts,
disputed facts, and key legal issues; and
(2) Parties shall submit a joint
statement of all proposals agreed to and
disputes remaining as a result of such
meeting to Commission staff at least two
business days prior to the scheduled
initial status conference.
(c) In addition to the initial status
conference referenced in paragraph (a)
of this section, any party may also
request that a conference be held at any
time after the complaint has been filed.
(d) During a status conference, the
Commission staff may issue oral rulings
pertaining to a variety of interlocutory
matters relevant to the conduct of a
formal complaint proceeding including,
inter alia, procedural matters, discovery,
and the submission of briefs or other
evidentiary materials.
(e) Parties may make, upon written
notice to the Commission and all
attending parties at least three business
days prior to the status conference, an
audio recording of the Commission
staff’s summary of its oral rulings.
Alternatively, upon agreement among
all attending parties and written notice
to the Commission at least three
business days prior to the status
conference, the parties may make an
audio recording of, or use a
stenographer to transcribe, the oral
presentations and exchanges between
and among the participating parties,
insofar as such communications are ‘‘onthe-record’’ as determined by the
Commission staff, as well as the
Commission staff’s summary of its oral
rulings. A complete transcript of any
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audio recording or stenographic
transcription shall be filed with the
Commission as part of the record,
pursuant to the provisions of paragraph
(f)(2) of this section. The parties shall
make all necessary arrangements for the
use of a stenographer and the cost of
transcription, absent agreement to the
contrary, will be shared equally by all
parties that agree to make the record of
the status conference.
(f) The parties in attendance, unless
otherwise directed, shall either:
(1) Submit a joint proposed order
memorializing the oral rulings made
during the conference to the
Commission by 5:30 p.m., Eastern Time,
on the business day following the date
of the status conference, or as otherwise
directed by Commission staff. In the
event the parties in attendance cannot
reach agreement as to the rulings that
were made, the joint proposed order
shall include the rulings on which the
parties agree, and each party’s
alternative proposed rulings for those
rulings on which they cannot agree.
Commission staff will review and make
revisions, if necessary, prior to signing
and filing the submission as part of the
record. The proposed order shall be
submitted both as hard copy and on
computer disk in accordance with the
requirements of § 8.36(d) of this subpart;
or
(2) Pursuant to the requirements of
paragraph (e) of this section, submit to
the Commission by 5:30 p.m., Eastern
Time, on the third business day
following the status conference or as
otherwise directed by Commission staff
either:
(i) A transcript of the audio recording
of the Commission staff’s summary of its
oral rulings;
(ii) A transcript of the audio recording
of the oral presentations and exchanges
between and among the participating
parties, insofar as such communications
are ‘‘on-the-record’’ as determined by the
Commission staff, and the Commission
staff’s summary of its oral rulings; or
(iii) A stenographic transcript of the
oral presentations and exchanges
between and among the participating
parties, insofar as such communications
are ‘‘on-the-record’’ as determined by the
Commission staff, and the Commission
staff’s summary of its oral rulings.
(g) Status conferences will be
scheduled by the Commission staff at
such time and place as it may designate
to be conducted in person or by
telephone conference call.
(h) The failure of any attorney or
party, following reasonable notice, to
appear at a scheduled conference will
be deemed a waiver by that party and
will not preclude the Commission staff
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from conferring with those parties and/
or counsel present.
§ 8.36 Specifications as to pleadings,
briefs, and other documents; subscription.
(a) All papers filed in any formal
complaint proceeding must be drawn in
conformity with the requirements of
§§ 1.49 and 1.50 of this chapter.
(b) All averments of claims or
defenses in complaints and answers
shall be made in numbered paragraphs.
The contents of each paragraph shall be
limited as far as practicable to a
statement of a single set of
circumstances. Each claim founded on a
separate transaction or occurrence and
each affirmative defense shall be
separately stated to facilitate the clear
presentation of the matters set forth.
(c) The original of all pleadings and
other submissions filed by any party
shall be signed by the party, or by the
party’s attorney. The signing party shall
include in the document his or her
address, telephone number, facsimile
number and the date on which the
document was signed. Copies should be
conformed to the original. Unless
specifically required by rule or statute,
pleadings need not be verified. The
signature of an attorney or party shall be
a certificate that the attorney or party
has read the pleading, motion, or other
paper; that to the best of his or her
knowledge, information, and belief
formed after reasonable inquiry, it is
well grounded in fact and is warranted
by existing law or a good faith argument
for the extension, modification, or
reversal of existing law; and that it is
not interposed solely for purposes of
delay or for any other improper
purpose.
(d) All proposed orders shall be
submitted both as hard copies and on
computer disk formatted to be
compatible with the Commission’s
computer system and using the
Commission’s current word processing
software. Each disk should be submitted
in ‘‘read only’’ mode. Each disk should
be clearly labeled with the party’s name,
proceeding, type of pleading, and date
of submission. Each disk should be
accompanied by a cover letter. Parties
who have submitted copies of tariffs or
reports with their hard copies need not
include such tariffs or reports on the
disk. Upon showing of good cause, the
Commission may waive the
requirements of this paragraph.
§ 8.37 Copies; service; separate filings
against multiple defendants.
(a) Complaints may generally be
brought against only one named
defendant; such actions may not be
brought against multiple defendants
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unless the defendants are commonly
owned or controlled, are alleged to have
acted in concert, are alleged to be jointly
liable to complainant, or the complaint
concerns common questions of law or
fact. Complaints may, however, be
consolidated by the Commission for
disposition.
(b) The complainant shall file an
original copy of the complaint and, on
the same day:
(1) File three copies of the complaint
with the Office of the Commission
Secretary;
(2) Serve two copies on the
Enforcement Bureau; and
(3) If a complaint is addressed against
multiple defendants, file three copies of
the complaint with the Office of the
Commission Secretary for each
additional defendant.
(c) Generally, a separate file is set up
for each defendant. An original plus two
copies shall be filed of all pleadings and
documents, other than the complaint,
for each file number assigned.
(d) The complainant shall serve the
complaint by hand delivery on either
the named defendant or one of the
named defendant’s registered agents for
service of process on the same date that
the complaint is filed with the
Commission in accordance with the
requirements of paragraph (b) of this
section.
(e) Upon receipt of the complaint by
the Commission, the Commission shall
promptly send, by facsimile
transmission to each defendant named
in the complaint, notice of the filing of
the complaint. The Commission shall
send, by regular U.S. mail delivery, to
each defendant named in the complaint,
a copy of the complaint. The
Commission shall additionally send, by
regular U.S. mail to all parties, a
schedule detailing the date the answer
will be due and the date, time and
location of the initial status conference.
(f) All subsequent pleadings and
briefs filed in any formal complaint
proceeding, as well as all letters,
documents or other written
submissions, shall be served by the
filing party on the attorney of record for
each party to the proceeding, or, where
a party is not represented by an
attorney, each party to the proceeding
either by hand delivery, overnight
delivery, or by facsimile transmission
followed by regular U.S. mail delivery,
together with a proof of such service in
accordance with the requirements of
§ 1.47(g) of this chapter. Service is
deemed effective as follows:
(1) Service by hand delivery that is
delivered to the office of the recipient
by 5:30 p.m., local time of the recipient,
on a business day will be deemed
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served that day. Service by hand
delivery that is delivered to the office of
the recipient after 5:30 p.m., local time
of the recipient, on a business day will
be deemed served on the following
business day;
(2) Service by overnight delivery will
be deemed served the business day
following the day it is accepted for
overnight delivery by a reputable
overnight delivery service such as, or
comparable to, the US Postal Service
VerDate Mar<15>2010
18:01 Mar 11, 2011
Jkt 223001
Express Mail, United Parcel Service or
Federal Express; or
(3) Service by facsimile transmission
that is fully transmitted to the office of
the recipient by 5:30 p.m., local time of
the recipient, on a business day will be
deemed served that day. Service by
facsimile transmission that is fully
transmitted to the office of the recipient
after 5:30 p.m., local time of the
recipient, on a business day will be
deemed served on the following
business day.
PO 00000
Frm 00051
Fmt 4701
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(g) Supplemental complaint
proceedings. Supplemental complaints
filed pursuant to § 8.25 of this subpart
shall conform to the requirements set
out in this section, except that the
complainant need not submit a filing
fee, and the complainant may effect
service pursuant to paragraph (f) of this
section rather than paragraph (d) of this
section numerals.
[FR Doc. 2011–5348 Filed 3–11–11; 8:45 am]
BILLING CODE 6712–01–P
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Agencies
[Federal Register Volume 76, Number 49 (Monday, March 14, 2011)]
[Proposed Rules]
[Pages 13800-13849]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-5348]
[[Page 13799]]
Vol. 76
Monday,
No. 49
March 14, 2011
Part IV
Federal Communications Commission
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47 CFR Parts 1, 6, 7 et al.
Implementing the Provisions of the Communications Act of 1934, as
Enacted by the Twenty-First Century Communications and Video
Accessibility Act of 2010; Proposed Rule
Federal Register / Vol. 76, No. 49 / Monday, March 14, 2011 /
Proposed Rules
[[Page 13800]]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 1, 6, 7, and 8
[CG Docket No. 10-213; WT Docket No. 96-198; CG Docket No. 10-145; FCC
11-37]
Implementing the Provisions of the Communications Act of 1934, as
Enacted by the Twenty-First Century Communications and Video
Accessibility Act of 2010
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Commission proposes to adopt rules that
implement provisions in section 104 of the Twenty-First Century
Communications and Video Accessibility Act of 2010 (CVAA), the most
significant piece of accessibility legislation since the passage of the
Americans with Disabilities Act in 1990. This proceeding would update
and amend the Commission's rules to ensure that individuals with
disabilities are able to fully utilize advanced communications services
(ACS) and equipment and networks used for such services. Specifically,
we seek comment on ways to implement the CVAA's requirements on
providers of ACS and manufacturers of equipment used for ACS to make
their services and products accessible to people with disabilities. The
intended effect is to promote rapid deployment of and universal access
to broadband services for all Americans across the country, because
broadband technology can stimulate economic growth and provide
opportunity for all Americans.
DATES: Submit comments on or before April 13, 2011. Submit reply
comments on or before May 13, 2011.
ADDRESSES: Federal Communications Commission, 445 12th Street, SW.,
Washington, DC 20554. A copy of any comments on the Paperwork Reduction
Act information collection requirements contained herein should be
submitted to the Federal Communications Commission via e-mail to
PRA@fcc.gov. You may submit comments, identified by FCC 11-37, or by CG
Docket No. 10-213, WT Docket No. 96-198, CG Docket No. 10-145, 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: David Hu, Broadband Division, Wireless
Telecommunications Bureau, FCC at (202) 418-7120 or via the Internet to
David.Hu@fcc.gov, or Rosaline Crawford, Disability Rights Office,
Consumer and Governmental Affairs Bureau, FCC at (202) 418-2075 or via
the Internet to Rosaline.Crawford@fcc.gov. For additional information
concerning the Paperwork Reduction Act information collection
requirements contained in this document, contact Judith B. Herman at
(202) 418-0214, or submit your PRA comments via the Internet at
PRA@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Proposed Rulemaking, FCC 11-37, adopted on March 2, 2011, and
released on March 3, 2011. The full text of this document is available
for inspection and copying during normal business hours in the FCC
Reference Information Center, Room CY-A257, 445 12th Street, SW.,
Washington, DC 20554. The complete text may be purchased from the
Commission's duplicating contractor, Best Copy and Printing, Inc.
(BCPI), Portals II, 445 12th Street, SW., Room CY-B402, Washington, DC
20554, (202) 488-5300, facsimile (202) 488-5563, or via e-mail at
fcc@bcpiweb.com. The complete text is also available on the
Commission's Web site at https://wireless.fcc.gov/edocs_public/attachment/FCC-11-37A1doc. This full text may also be downloaded at:
https://wireless.fcc.gov/releases.html. Alternative formats (computer
diskette, large print, audio cassette, and Braille) are available by
contacting Brian Millin at (202) 418-7426, TTY (202) 418-7365, or via
e-mail to bmillin@fcc.gov.
Summary
I. Introduction and Overview
1. This Notice of Proposed Rulemaking (``NPRM'') initiates a
proceeding to update the Commission's rules to ensure that the 54
million individuals with disabilities are able to fully utilize
advanced communications services and equipment and networks used for
such services. Also, this NPRM proposes to adopt rules that implement
provisions in section 104 of the ``Twenty-First Century Communications
and Video Accessibility Act of 2010'' (hereinafter referred to as the
``CVAA''), Public Law 111-260, 124 Stat. 2751 (2010), the most
significant piece of accessibility legislation since the passage of the
Americans with Disabilities Act in 1990 (``ADA''). (See also Public Law
111-265, 124 Stat. 2795 (2010) (making technical corrections to the
CVAA)).
2. In explaining the need for the CVAA, Congress noted that the
communications marketplace has undergone a ``fundamental
transformation'' since Congress acted to ensure access to
telecommunications services and equipment by people with disabilities
as part of the Telecommunications Act of 1996. See S. Rep. No. 111-386
(2010) and H.R. Rep. No. 111-563 (2010). Specifically, Congress stated
that since it added section 255 to the Communications Act of 1934, as
amended (hereinafter referred to as ``the Communications Act'' or ``the
Act''), ``Internet-based and digital technologies * * * driven by
growth in broadband * * * are now pervasive, offering innovative and
exciting ways to communicate and share information.'' Congress found,
however, that people with disabilities often have not shared in the
benefits of this rapid technological advancement and that they face
disproportionately higher rates of unemployment and poverty than those
without disabilities. Recent surveys confirmed this finding, showing a
gap of 38 percentage points in the rates of employment of working-age
people with disabilities and those without disabilities (21% v. 59%)
and a gap of 27 percentage points in the rates of Internet access (54%
v. 81%).
3. These trends are even more troubling when one considers the pace
at which the communications marketplace is changing and how we as a
society are becoming more dependent on such technologies to succeed in
the workplace and to manage our daily lives. Statistics show, for
example, that more than ever, Americans rely on their mobile phones for
much more than phone service. Increasingly, wireless handsets have
evolved into multi-media devices capable of accessing the Internet,
sending e-mails or text messages, downloading music, and viewing
streaming video programming that can, for example, enable distance
education and telemedicine. As described in the National Broadband
Plan, one of the Commission's most important policy objectives is the
rapid deployment of and universal access to
[[Page 13801]]
broadband services for all Americans across the country, because
broadband technology can stimulate economic growth and provide
opportunity for all Americans. To that end, the recommendations in the
National Broadband Plan were consistent with the objectives set forth
in the CVAA. This law will bring existing communication laws protecting
people with disabilities in line with 21st Century technologies by
ensuring that people with disabilities are not left behind and that
they will be able to share fully in the economic, social, and civic
benefits of broadband.
4. This NPRM seeks comment on the way in which we should implement
the requirements of sections 716 and 717, which were added by section
104 of Title I of the CVAA. The statute requires the Commission to
adopt rules within one year of enactment. section 716 requires that
providers of ``advanced communications services'' (or ``ACS'') and
manufacturers of equipment used for ACS make their services and
products accessible to people with disabilities, unless it is not
achievable to do so. The CVAA provides flexibility to the industry by
allowing covered entities to comply with section 716 by either building
access features into their equipment or services or relying on third
party applications, peripheral devices, software, hardware, or customer
premises equipment (or ``CPE'') that is available to individuals with
disabilities at nominal cost. If such compliance is not achievable,
covered entities must ensure that their equipment and services are
compatible with ``existing peripheral devices or specialized customer
premises equipment'' commonly used by persons with disabilities to
achieve access, unless it is not achievable to do so. Section 717
requires that the Commission establish new recordkeeping and
enforcement procedures for manufacturers and providers subject to
section 255 and section 716. Appendix D contains the full text of the
CVAA as enacted (Pub. L. 111-260 and Pub. L. 111-265).
5. While section 255 of the Act will be the starting point for our
implementation of these sections, our proposed approach reflects
several important differences between section 255 and section 716.
First, section 716 covers a broader scope of services and related
equipment than section 255. In addition, relative to section 255,
section 716 requires a higher standard of achievement for covered
entities but also allows for greater flexibility in how to accomplish
these requirements. In the NPRM, we propose to adopt a new rule part to
implement sections 716 and 717 of the Act and to amend the rules
implementing section 255 of the Act to incorporate any relevant
definitional changes in section 716 and establish the new recordkeeping
and enforcement procedures set forth in section 717. The regulatory
oversight we propose in this proceeding is not intended to prejudge the
scope of the Commission's authority in other proceedings that derive
from different statutory grants of authority.
6. The NPRM also seeks comment on section 718, which is effective
three years after the date of enactment of the CVAA and requires
manufacturers and service providers to make Internet browsers built
into mobile phones accessible to people who are blind or have visual
impairments. Specifically, the NPRM seeks input on what steps the
Commission and stakeholders can take to ensure that manufacturers and
service providers can meet their obligations when section 718 goes into
effect in 2013.
II. Background
7. Section 255 of the Act, which was added by the
Telecommunications Act of 1996, requires manufacturers of
telecommunications equipment and providers of telecommunications
services to ensure that their equipment and services are accessible to
and usable by people with disabilities, if readily achievable. When the
accessibility requirements of section 255 are not readily achievable,
manufacturers and service providers must ensure compatibility with
existing peripheral devices or specialized CPE commonly used by
individuals with disabilities, if readily achievable. A related
provision in section 251(a)(2) of the Act prohibits a
telecommunications carrier from installing network features, functions
or capabilities that do not comply with the guidelines and standards
established pursuant to section 255.
8. Section 255 directed the United States Access Board (``Access
Board'') to work with the Commission to establish guidelines for the
accessibility of telecommunications equipment and CPE within 18 months
of enactment. In June 1996, the Access Board convened the
Telecommunications Access Advisory Committee (TAAC), a federal advisory
committee consisting of consumer, industry, and government
stakeholders, for this purpose. The TAAC delivered its final report to
the Access Board in January 1997, which the Access Board then used to
develop its section 255 guidelines. In September 1999, the Commission
adopted a Report and Order adding parts 6 and 7 to its rules to
implement section 255, in large part incorporating the Access Board's
guidelines for telecommunications equipment and customer premises
equipment (``CPE''). In addition to drawing heavily on these guidelines
for its rules implementing section 255 of the Act on telecommunications
equipment and CPE (in part 6 of its rules), the Commission utilized the
general principles contained in these guidelines to outline the general
obligations of telecommunications service providers. In part 7 of these
rules, the Commission also used its ancillary jurisdiction to adopt
rules relating to voicemail and interactive voice response providers
and equipment manufacturers. In 2007, the Commission extended its
section 255 accessibility rules to interconnected Voice-over-Internet
Protocol (``VoIP'') service providers and equipment manufacturers.
9. The rules adopted to implement section 255 require that where
readily achievable, manufacturers and service providers must evaluate
the accessibility, usability, and compatibility features of covered
services and equipment; incorporate such evaluation throughout product
design, development, and fabrication, as early and consistently as
possible; and identify barriers to accessibility and usability as part
of the product design and development process. The rules also provide
that where readily achievable, manufacturers and service providers must
ensure that product and service information and documentation provided
to customers is accessible to customers with disabilities. In addition,
under the rules, equipment manufacturers must pass through cross-
manufacturer, nonproprietary, industry-standard codes, translation
protocols, formats or other information necessary to provide
telecommunications in an accessible format, where readily achievable.
The rules also contain an informal complaint procedure by which
manufacturers and service providers must attempt to resolve the
complainant's concerns and respond to the Commission within 30 days.
10. In 2006, the Access Board initiated a review of its
accessibility guidelines for telecommunications equipment and CPE
covered under section 255 of the Act and its standards for electronic
and information technology covered under section 508 of the
Rehabilitation Act. Under section 508, federal agencies must ``develop,
procure, maintain, and use'' electronic and information technologies
that are accessible to people with disabilities, unless doing so would
cause an undue burden. The goal of this review was to
[[Page 13802]]
bring the section 255 and section 508 guidelines and standards up to
date and to harmonize them with each other and international
accessibility standards. Again, the Access Board established an
advisory board of interested stakeholders for this purpose, and in
April 2008, the Telecommunications and Electronic and Information
Technology Advisory Committee (``TEITAC'') issued its final report,
containing a set of recommended updates to these guidelines and
standards. In March 2010, the Access Board released for public comment
draft information and communication technology (``ICT'') guidelines and
standards, which were based on these stakeholder recommendations.
11. During the spring of 2010, the Consumer and Governmental
Affairs Bureau (``CGB'') and the Wireless Telecommunications Bureau
(``WTB'') (``the Bureaus'') held two workshops to explore the
telecommunications access needs of people with disabilities, along with
solutions to address these barriers. At the first of these, held on May
13, 2010, the Commission received feedback on expanding disability
access to wireless telecommunications; at the second, held on June 15,
2010, young adults who are deaf-blind discussed the barriers they
experience in accessing telecommunications and in obtaining information
about accessible technologies.
12. Building on those workshops, on July 19, 2010, the Bureaus
issued a public notice in DA 10-1324, in CG Docket No. 10-145
expressing the concerns ``that people who are blind or have other
vision disabilities have few accessible and affordable wireless phone
options'' and ``that many wireless technologies may not be compatible
with Braille displays needed by individuals who are deaf-blind.'' The
July public notice sought comment on, among other things, the barriers
faced by these populations, the cost and feasibility of technical
solutions, and the actions that the agency should take to address the
current lack of access. The Bureaus received over 200 submissions in
the record from consumers, consumer groups, trade associations, and
individual companies, many of whom provided details about the lack of
access to basic and smart phones. While staff continues to consider the
steps the agency should take to address those concerns, we have
incorporated the record from the July public notice into the record of
this proceeding because the record in CG Docket No. 10-145 is
particularly relevant and may inform our understanding of the issues
raised here, including the difficulties that people with disabilities
face in finding accessible products and getting the technical and
customer support that they need in today's marketplace.
13. On October 21, 2010, CGB and WTB issued a public notice in DA
10-2029, seeking input on key provisions in sections 716, 717, and 718
of the Communications Act, as amended by the CVAA. The Bureaus received
24 comments and 25 reply comments, which have helped to shape the
development of this NPRM.
III. Statutory Definitions
A. Scope of Coverage
1. Background
14. Section 716 of the Act covers a broad array of manufacturers of
equipment and providers of services that are not covered under section
255. As discussed in more detail below, the requirements of section 716
apply to the manufacturers of equipment used for non-interconnected
VoIP services, electronic messaging services, and interoperable video
conferencing services (all of which are ``advanced communications
services'' as defined in section 3(1) of the Act) and the providers of
those services. (Although interconnected VoIP service also constitutes
an ACS, such service is subject to section 255 of the Act and thus need
not comply with the requirements of section 716.) We agree with AT&T's
statement that ``section 716 reflects the reality that ACS is delivered
in a complex Internet ecosystem'' and that ``[a]ccessibility
obligations must be shared by all entities in that ecosystem for
consumers to have an accessible experience.'' We discuss the evolution
of the ``complex Internet ecosystem'' below and seek further comment on
how we should interpret section 716 requirements, in light of this
evolution and the statute's broader purposes of ensuring that ACS and
equipment used for ACS is accessible to and usable by people with
disabilities.
15. Since section 255 was first enacted, communication technology
has changed significantly, both in terms of its usage of the Internet
and packet-switched networks instead of circuit-switched networks and
in its common architecture. In many cases, communication devices had a
single function, and were created by a single manufacturer and often
closely tied to a specific communication service or network. As the
fixed and mobile Internet has evolved, mass-market communication
devices are now often general-purpose computers or devices such as
smart phones incorporating aspects of general-purpose computers, with
an architecture reflecting the evolution of computer technology. This
architecture has been common for personal computers since the 1980s,
but has more recently also made its way into mobile devices such as
smart phones and tablets, and into entertainment devices such as game
consoles and set-top boxes. In all of these cases, systems can be
divided into at least five components that can be pictured, roughly, as
layers, with the hardware at the bottom and the application and
services at the top:
Hardware (commonly referred to as the ``device''): Every
advanced communications service relies on hardware with general-purpose
computing functionality. It typically includes a computing component
(``CPU''), several kinds of memory, one or more network interfaces
(cellular, IEEE 802.11 ``WiFi,'' Ethernet, Bluetooth, etc.), built-in
peripherals such as keyboards and displays, and both generic and
dedicated-purpose interfaces to external peripherals. A common example
of a generic interface is a USB interface, as it can support just about
any input or output technology, from audio to keyboards and cameras. A
dedicated-purpose interface can only support one media type, such as
audio.
Operating system (``OS''): The OS manages the system
resources enumerated above and provides common functionality, such as
network protocols, to applications. Almost all devices with a CPU have
an OS.
User interface layer: Most modern devices have a separate
user interface (``UI'') layer upon which almost all applications rely
to create their graphical user interface. Currently, the OS and user
interface layer are typically provided as a package and are often
referred to collectively as the OS, but this is not always the case.
For example, at least one common OS allows users to replace the user
interface layer. In many cases, web browsers are considered to be part
of the UI layer although they themselves are also an application.
Application (commonly referred to as an ``app''): Software
is used to implement the actual advanced communications functionality.
The software may be embedded into the device and non-removable,
installed by the system integrator or user, or reside in the cloud.
Network services: Advanced communication applications,
such as VoIP, rely on network services to interconnect users. These
networks perform many functions, ranging from user authentication and
authorization to call routing and media storage. In many
[[Page 13803]]
cases, such network services simply route the call signaling
information and do not touch the actual media exchanged. In these
cases, the service itself may not know or care what kind of media
(audio, video, text) is exchanged between communicating end systems. In
other cases, the network services may perform more than transport
functions and offer video, voice, and other data capabilities.
While the particulars of the above components have evolved, the
basic architecture has remained stable for several decades and there
are no obvious successors under development in the research community.
Thus, it appears reasonably safe to assume that this division will
continue for the immediate future, although we note that the components
listed above overlap with each other.
16. Because each of the above components may be created by a
different manufacturer and sold separately, this division has three
major consequences. First, a manufacturer or provider of one component
may have limited ability to know which other components are being used
to deliver an advanced communications service. For example, a PC- and
web-based collaboration service can run on most personal computers,
using an almost infinite set of combinations of hardware, operating
systems and web browsers. Second, components of the service can change
over time. Users can often upgrade their hardware, OS, or application,
without consulting with the manufacturer or provider of the other
components. Third, the accessibility features of each component are
likely to evolve over time. Manufacturers of hardware, OS, and user
interface layers may not know whether the components they produce will
be used for advanced communications services in the future and for
which ones.
17. In order to enable individuals with disabilities to use an
advanced communications service, all of the components may have to
support accessibility features and capabilities. Conversely, if one
component does not offer a particular function, it is often impossible
for another component to compensate for that omission. For example,
only the hardware component can support an audio jack or a connection
to an external Braille device, while only the OS and user interface
layer can enable screen readers. In addition, it should be noted that
while upper layers cannot make up for the lack of accessibility
features at the lower layers, they can impede their use. For example,
an application could render text in such a way that screen readers or
Braille devices cannot function, e.g., to protect content against
extraction as part of digital rights management functionality. While
this environment complicates the ability to implement capabilities that
support people with disabilities, we also recognize that these
challenges are inherent in the design of any mass market application or
hardware device. At the same time, we recognize that this environment
also has the potential to provide new solutions for people with
disabilities which were not previously possible.
18. We seek comment on whether the above description accurately
reflects the basic architecture and components involved in the delivery
of ACS. Below, we seek comment on how we should interpret the statute's
directives, in light of the architecture and components discussed
above.
2. Manufacturers of Equipment Used for Advanced Communications Services
19. Section 716(a) of the Act provides that, with respect to
equipment manufactured after the effective date of applicable
regulations established by the Commission and subject to those
regulations, the accessibility obligations apply to a ``manufacturer of
equipment used for advanced communications services, including end user
equipment, network equipment, and software * * * that such manufacturer
offers for sale or otherwise distributes in interstate commerce.''
20. We first seek comment on the meaning of the term
``manufacturer.'' We note that in our rules implementing section 255 of
the Act we define ``manufacturer'' as ``an entity that makes or
produces a product.'' In the Section 255 Report and Order, we found
that ``[t]his definition puts responsibility on those who have direct
control over the products produced, and provides a ready point of
contact for consumers and the Commission in getting answers to
accessibility questions and resolving complaints.'' We propose to adopt
the same definition of ``manufacturer'' in our rules implementing
section 716 and seek comment on this proposal.
21. We also seek comment on the meaning of ``end user equipment,''
``network equipment'' and ``software,'' as those terms are used in
section 716(a). We propose to define ``end user equipment'' as
including hardware as described above; ``software'' includes the OS,
the user interface layer, and applications, as described above, that
are installed or embedded in the end user equipment by the manufacturer
of the end user equipment or by the user; and ``network equipment''
includes equipment used for network services, as described above. We
seek comment on whether upgrades to the software (OS, user interfaces,
or applications) by manufacturers are encompassed in these definitions.
We also seek comment on whether there are any circumstances in which a
manufacturer of end user equipment would be responsible for the
accessibility of software that is installed or downloaded by the user.
In particular, we seek comment on commenters' assertions that the
limitations on liability in section 2(a) of the CVAA generally preclude
manufacturers from being liable for third party applications that are
installed or downloaded by the consumer.
22. In addition, we seek comment on the meaning of the phrase
``used for advanced communications services,'' in section 716(a), for
the purposes of determining a manufacturer's obligations under this
section. As a general matter, must equipment subject to section 716(a)
be capable of offering ACS on a standalone basis or merely support ACS
in some way? If the former, then how should this standard be applied,
for example, to Internet-enabled ACS intended to run on separately
distributed general computing platforms?
23. We also seek comment on the meaning of ``offers for sale or
otherwise distributes in interstate commerce'' by ``such
manufacturer.'' Hardware, as described above, commonly meets this
definition. We seek comment on whether other components that are used
for advanced communications services are offered for sale or otherwise
distributed in interstate commerce by the manufacturer when installed
or embedded by the manufacturer. We propose to treat generally the act
of a manufacturer's making software available for download as a form of
distribution. We seek comment, however, for purposes of the CVAA, on
what should constitute making software available for download.
24. We propose to hold manufacturers of end user equipment
responsible for the accessibility of their products, including the
software, such as the OS, the user interface layer, and the
applications that they install. We also propose to find manufacturers
of software used for advanced communications services that is offered
for sale or otherwise distributed in interstate commerce by such
manufacturers and that is downloaded or installed by the user as being
covered by section 716(a).
[[Page 13804]]
3. Providers of Advanced Communications Services
25. Section 716(b)(1) of the Act provides that, with respect to
service providers, after the effective date of applicable regulations
established by the Commission and subject to those regulations, a
``provider of advanced communications services shall ensure that such
services offered by such provider in or affecting interstate commerce
are accessible to and usable by individuals with disabilities,'' unless
these requirements are ``not achievable.''
26. In the Section 255 Report and Order, the Commission found that
providers of telecommunications services include resellers and
aggregators. The Commission's decision was based on its interpretation
of the statutory definition of ``telecommunications carrier'' as
defined in section 3(51) of the Act. Specifically, the Commission noted
that ``[section 3(51)] states that a `telecommunications carrier' means
any `provider of telecommunications services' with the exception of
aggregators, thus indicating that a `provider of telecommunications
services' would otherwise include aggregators.'' While the CVAA does
not provide similar guidance with respect to the definition of provider
of ACS, we believe that the general principle that the Commission
adopted in the Section 255 Report and Order--that ``Congress intended
to use the term ``provider'' broadly * * * to include all entities that
make telecommunications services available''--has applicability here.
Accordingly, we propose to find providers of ACS to include all
entities that make ACS available in or affecting interstate commerce,
including resellers and aggregators. We seek comment on this proposal.
27. We also seek comment on additional issues relating to the
meaning of ``providers of advanced communications services.'' We
propose to find such providers to include entities that provide ACS
over their own networks as well as providers of applications or
services accessed (i.e., downloaded and run) by users over other
service providers' networks, as long as these providers make advanced
communications services available in or affecting interstate commerce.
We also seek comment on whether there are any circumstances in which a
service provider would be responsible for the accessibility of third
party services and applications or whether the liability provisions in
section 2(a) of the CVAA would generally preclude such a result. We
seek comment on these proposed approaches and on whether the fact that
we are required under section 716(e)(1)(C) to ``determine the
obligations under this section of manufacturers, service providers, and
providers of applications or services accessed over service provider
networks'' should have any bearing on how we interpret the meaning of
providers of ACS. Specifically, we seek comment on the meaning of
``providers of applications or services accessed over service provider
networks'' and how this term differs from ``providers of advanced
communications services.'' Finally, we also seek comment on the meaning
of ``in or affecting interstate commerce.'' Are there any circumstances
in which advanced communications services that are downloaded or run by
the user would not meet this definition?
4. Advanced Communications Services
28. Section 3(1) of the Act defines ``advanced communications
services'' to mean (A) Interconnected VoIP service; (B) non-
interconnected VoIP service; (C) electronic messaging service; and (D)
interoperable video conferencing service. That provision sets forth
definitions for each of these terms.
a. Interconnected VoIP Service
29. Section 3(25) of the Act, as added by the CVAA, provides that
the term ``interconnected VoIP service'' has the meaning given in Sec.
9.3 of the Commission's rules, as such section may be amended. Sec.
9.3 of the Commission's rules, in turn, defines interconnected VoIP as
a service that (1) enables real-time, two-way voice communications; (2)
requires a broadband connection from the user's location; (3) requires
Internet protocol-compatible CPE; and (4) permits users generally to
receive calls that originate on the public switched telephone network
(``PSTN'') and to terminate calls to the PSTN. We propose to continue
to define interconnected VoIP in accordance with Sec. 9.3 of the
Commission's rules. We seek comment on this proposal.
30. Section 716(f) of the Act provides that ``the requirements of
this section shall not apply to any equipment or services, including
interconnected VoIP service, that are subject to the requirements of
section 255 on the day before the date of enactment of the Twenty-First
Century Communications and Video Accessibility Act of 2010.'' In the
October Public Notice, the Bureaus sought comment on how to address the
accessibility obligations of equipment that is used to provide both
telecommunications and advanced communications services and how to
treat interconnected VoIP. In its comments, AT&T states that ``the
Commission should subject multi-purpose devices to section 255 to the
extent that the device provides a service that is already subject to
section 255 and apply section 716 solely to the extent that the device
provides ACS that is not otherwise subject to section 255.'' We seek
comment on AT&T's interpretation and also seek comment on alternative
interpretations of section 716(f).
b. Non-interconnected VoIP Service
31. Section 3(36) of the Act, as added by the CVAA, states that the
term ``non-interconnected VoIP service'' means a service that ``(i)
enables real-time voice communications that originate from or terminate
to the user's location using Internet protocol or any successor
protocol; and (ii) requires Internet protocol compatible customer
premises equipment'' and that ``does not include any service that is an
interconnected VoIP service.'' We propose to define ``non-
interconnected VoIP service'' in our rules in the same way and seek
comment on this proposal.
32. We propose to treat any offering that meets the criteria of the
statutory definition set forth above as a ``non-interconnected VoIP
service,'' and note that the statutory definition of non-interconnected
VoIP does not exclude offerings with a purely incidental VoIP
component. We seek comment on this proposal. We also note that, as
discussed below, the statute allows the Commission to waive the
requirements of section 716 for equipment or services ``designed
primarily for purposes other than using advanced communications
service.'' In addition, as discussed below, section 716(i) provides
that the requirements of this Section do not apply to ``customized
equipment or services that are not offered directly to the public.''
c. Electronic Messaging Service
33. Section 3(19) of the Act, as added by the CVAA, states that the
term ``electronic messaging service'' means a service that provides
real-time or near real-time non-voice messages in text form between
individuals over communications networks. In accordance with this
definition, we propose to define this term in the Commission's rules as
``a service that provides real-time or near real-time non-voice
messages in text form between individuals over communications
networks.'' Consistent with language of the Senate and House Reports,
we also propose that electronic messaging service includes ``more
traditional, two-way interactive services such as text messaging,
instant messaging, and
[[Page 13805]]
electronic mail, rather than * * * blog posts, online publishing, or
messages posted on social networking websites.'' We seek comment on
these proposed definitions. For reasons similar to those discussed
below in the section on interoperable video conferencing services, we
believe that Internet protocol relay (``IP Relay'') services that
otherwise fit the definition of ``electronic messaging services'' are
services subject to the requirements of section 716.
34. We also seek comment on the assertion of several commenters
that the phrase ``between individuals'' in the above definition
precludes the application of the accessibility requirements to
communications in which no human is involved, such as automatic
software updates or other device-to-device or machine-to-machine
communications. In addition, we seek comment on TIA's assertion that
``services and applications that merely provide access to an electronic
messaging service, such as a broadband platform that provides an end
user access to an HTML-based e-mail service, are not covered.''
d. Interoperable Video Conferencing Service
35. Section 3(1) of the Act, as added by the CVAA, defines the term
``advanced communications services'' to include ``interoperable video
conferencing service,'' which, in turn, is defined in section 3(27) as
``a service that provides real-time video communications, including
audio, to enable users to share information of the user's choosing.''
We note that while earlier versions of the legislation did not include
the word ``interoperable'' in the definition of the term ``advanced
communications services,'' the definition of ``interoperable video
conferencing services'' in the enacted legislation is identical to the
definition of ``video conferencing services'' found in earlier
versions. In addition, language in the Senate Report regarding
``interoperable video conferencing services'' is identical to language
in the House Report regarding ``video conferencing services.'' Both the
Senate Report and the House Report state, for example, that ``[t]he
inclusion * * * of these services within the scope of the requirements
of this act is to ensure, in part, that individuals with disabilities
are able to access and control these services'' and that ``such
services may, by themselves, be accessibility solutions.'' In light of
the above symmetries between the earlier and later versions of this
definition, as well as the reports prepared by each chamber of
Congress, we will first seek comment on the meaning of ``video
conferencing service'' and then on the meaning of ``interoperable'' in
this context.
i. Video Conferencing Service
36. We first seek comment on what services meet the statutory
definition of ``providing * * * real-time video communications,
including audio, to enable users to share information of the user's
choosing'' and what end user equipment, network equipment, and software
are used for these services. We propose to classify a range of services
and end user equipment under this statutory definition, including, but
not limited to videophones and software applications used for
conversation between and among users. Such end user equipment includes
smart phones and computers with the capability of using interactive
video, text and audio conferencing applications such as the Apple
iPhone 4.0, Motorola Droid X and computers and videophones such as ASUS
Skype, Grandstream, Ojo, and Polycom. Examples of video conferencing
software applications include, for example, Google Voice & Video Chat,
ooVoo, AOL Instant Message (``AIM'') Chat, WebEx, and Skype. We seek
comment on this proposal.
37. We also seek comment on whether video relay services (``VRS'')
meet the above definition. VRS is a form of TRS under section 225 of
the Act that enables individuals who are deaf or hard of hearing and
who use American Sign Language to communicate over distances with voice
telephone users through a remotely located sign language interpreter
called a CA. The person who is deaf or hard of hearing makes a VRS call
using video equipment (a television or a computer with a video camera
device) that connects such individual with the CA over a broadband
connection. The CA then relays the conversation between the parties--in
sign language with the VRS user (the ``video leg''), and by voice with
the telephone user (the ``telephone leg''). Voice telephone users can
also initiate VRS calls by simply dialing the telephone number of the
person who uses sign language. The call is then automatically connected
to a CA, who then relays the conversation.
38. Commenters disagree about whether the CVAA covers the video
conferencing service and equipment used in the provision of VRS.
Sorenson cites to the legislative history and submits that ``Section
716 was intended to cover mass market services and equipment (such as
personal computers and smart phones) that have not been designed for
use by people with disabilities, not services and equipment (such as
VRS and point-to-point) that have been designed specifically to be
accessible to and usable by persons with disabilities.'' Consumer
Groups disagree, stating that ``VRS equipment and [video conferencing]
services * * * should be made accessible in accordance with the
Accessibility Act, if achievable.'' Sorenson also asserts that the
phrase ``including audio'' in the definition suggests the exclusion of
VRS ``video conferencing service'' or equipment. Consumer Groups reject
Sorenson's assertion because widely distributed VRS equipment includes
audio functions that ``benefit users who engage in voice carryover
(`VCO') and hearing carryover (`HCO').''
39. We agree with Consumer Groups and believe that the ``video
leg'' of a VRS call meets the statutory definition of ``provid[ing] * *
* real-time video communications, including audio, to enable users to
share information of the user's choosing.'' Just as a voice telephone
user uses telecommunications services and equipment to communicate with
the VRS CA (the ``telephone leg'' of a VRS call), we propose to find
that a VRS consumer uses video conferencing services and equipment to
communicate with the VRS CA (the ``video leg'' of a VRS call). We find
nothing in the statute or the legislative history to suggest that
providers of video conferencing services and manufacturers of equipment
used for VRS who otherwise are covered under the CVAA should be
excluded from its requirements simply because their services are a kind
of TRS provided pursuant to section 225 of the Act. While VRS equipment
and services are specifically designed for people who are deaf or hard
of hearing and use sign language, they are not necessarily designed for
those who have additional disabilities as well (e.g., individuals who
are deaf and have low vision, a mobility, or dexterity disability). We
do not believe this interpretation will in any way diminish or change
the obligations of VRS providers that are contained in part 64 of the
Commission's rules. We seek further comment on this issue and on
whether such an interpretation would create any difficulties or
conflicts in our implementation of the VRS program.
40. We note that consumers who are deaf or hard of hearing also use
video equipment distributed by VRS providers for point-to-point calls
with other users of this equipment. We believe that such point-to-point
calling also meets the CVAA's statutory definition of ``providing * * *
real-time video communications, including audio, to
[[Page 13806]]
enable users to share information of the user's choosing,'' and seek
comment on this analysis.
41. We also seek further comment on whether webinars are a covered
service. TIA states that ``a service that enables users to share
information necessarily implies a two-way service, not a broadcast-
style webinar video.'' The IT and Telecom RERCs disagree, however,
asserting that webinar systems should be subject to Section 716 because
these systems are ``not designed to broadcast information but rather to
provide user interaction in the form of chat, voting, and hand-raising,
etc.''
42. Next, we seek comment on Consumer Groups' assertion that ``the
scope of the [CVAA] should not be limited by the type of communication
conveyed by the video conferencing service (i.e., uni-, bi-, or multi-
directional), but by the fact that the service is capable of providing
real-time communications that enable users to share information.''
Consumer Groups suggest, for example, that the fact that ``video
conferencing services may be used to leave a `video mail' (similar to a
`voice mail') message,'' does not preclude the service's coverage under
the CVAA. Consistent with our seeking comment on how to treat multi-
purpose devices above we seek comment on Consumer Groups' suggestion.
We also seek comment more generally on whether services that otherwise
meet the definition of ``provid[ing] * * * real-time video
communications, including audio, to enable users to share information
of the user's choosing'' but that also provide non-real-time functions
(such as video mail) are covered under the CVAA. If so, are the non-
real-time functions or near-real-time functions of such a service (such
as video mail) subject to the requirements of section 716? If such
functions are not covered, should we, similar to what we did in the
section 255 context, assert our ancillary jurisdiction to cover video
mail? Specifically, the Commission employed its ancillary jurisdiction
to extend the scope of section 255 to both voicemail and interactive
menu services under part 7 of the Commission's rules because ``the
failure to ensure accessibility of voicemail and interactive menu
services, and the related equipment that performs these functions,
would [have] seriously undermined the accessibility and usability of
telecommunications services required by sections 255 and 251(a)(2).''
Similarly, we seek comment on whether the exclusion of video mail from
our rules governing section 716 would hinder our ability to ensure the
accessibility and usability of advanced communications services.
43. TIA also asserts, similar to the argument that it made with
respect to the scope of VoIP services covered under the CVAA, that
``products that offer a video connection that is incidental to the
principal purpose and nature of the end user offering fall outside the
definition as well,'' we believe the same analysis that we propose to
apply to the scope of non-interconnected VoIP should apply here. We
therefore propose to classify any offering that meets the criteria of
the statutory definition set forth above as a ``video conferencing
service'' and note that the statutory definition does not exclude
``products that offer a video connection that is incidental to the
principal purpose and nature of the end user offering.'' Again, we note
that this issue may be relevant to our waiver authority set forth in
section 716(h), or the exclusion of customized equipment or services
pursuant to section 716(i). We seek comment on this proposed
classification.
ii. Interoperable
44. We seek further comment on the meaning of ``interoperable'' in
the term ``interoperable video conferencing service,'' again noting the
symmetries of the definition and interpretation of this term in the
various drafts of the CVAA and the legislative history of this law.
Commenters appear to be divided on the significance of this term. ITI
asserts that the inclusion of the modifier ``interoperable'' after
earlier versions of the legislation did not include the word ``strongly
suggests that Congress consciously decided to target only a subset of
all video conferencing services.'' TIA urges an interpretation of the
word ``interoperable'' to mean that a video conferencing service must
operate ``inter-platform, inter-network, and inter-provider'' before it
is subject to the accessibility provisions of the CVAA. Similarly, CEA
concludes that ``most nascent two-way video services and applications
commercially available in the marketplace have not yet reached true
interoperability and are not covered by the statute.'' However,
Consumer Groups believe that ``interoperable'' should be interpreted to
achieve a broad application of the requirements of the CVAA. Similarly,
the RERC-IT urges that the inclusion of the word ``interoperable''
suggests a broad application of the CVAA so that ``all video
conferencing services are covered and that they should be made
interoperable.'' Other commenters express concerns about the current
lack of interoperability of video conferencing services, i.e., that
consumers are not able to make point-to-point calls using different
video conferencing programs.
45. We are concerned that limiting coverage of this provision to
only currently available video conferencing services that are ``inter-
platform, inter-network, and inter-provider'' may undermine the
statute's intent to the extent the definition results in little or no
video conferencing service or equipment being ``interoperable.'' We
note that ``video conferencing service'' in the legislative history and
``interoperable video conferencing service'' in the statute have the
exact same definitions.
46. We seek comment on how to define ``interoperable'' in a manner
that is faithful to both the statutory language and the broader
purposes of the CVAA. Specifically, we seek comment on how the
Commission should define interoperable video conferencing services
within the scope of covered services to ensure that ``such services
may, by themselves, be accessibility solutions'' and ``that individuals
with disabilities are able to access and control these services'' as
Congress intended. For example, which characteristics of video
conferencing services and equipment, including software, should
determine ``interoperability''?
47. The Commission requires VRS services and equipment to be
``interoperable'' for the provision of VRS under section 225 of the
Act. The Commission also requires video conferencing services and
equipment used for point-to-point calls between VRS equipment users to
be ``interoperable'' under the authority of ancillary jurisdiction.
These interoperability requirements pertain only to VRS providers and
equipment used by registered VRS users for VRS and point-to-point
communications and do not require interoperability among VRS and other
platforms, networks, or providers. We seek comment on whether how we
define interoperability in the context of VRS should have any bearing
on how we define ``interoperable'' in the term ``interoperable video
conferencing service.''
5. Customized Equipment or Services
48. Section 716(i) states that the provisions of this section
``shall not apply to customized equipment or services that are not
offered directly to the public, or to such classes of users as to be
effectively available directly to the public, regardless of the
facilities used.'' While the Senate Report did not discuss this
provision, the House Report explains that section 716(i) is a ``narrow
[[Page 13807]]
exemption'' that encompasses ``equipment and services [that] are
customized to the unique specifications requested by an enterprise
customer.'' It goes on to state that this provision ``permit[s]
manufacturers and service providers to respond to requests from
businesses that require specialized and sometimes innovative equipment
to provide their services efficiently'' and is ``not intended to create
an exemption for equipment and services designed for and used by
members of the general public.''
49. Several other commenters urge us to find that manufacturers and
service providers are subject to Section 716 only to the extent that
they are offering their equipment and services directly to the public.
In contrast, the RERC-IT urges us to ``carefully limit the exception
for customized equipment and services'' and to cover equipment and
services that have been customized in ``minor ways'' and ``that are
made available to the public indirectly through employers, schools, or
other institutions.'' The RERC-IT also urges that we define ``public''
in this context to ``include public institutions, such as educational
institutions and government agencies.''
50. We believe that the guidance offered by the House Report
evinces Congress's intent that section 716(i) be narrow in scope and
applicable only to customized equipment and services offered to
business or other enterprise customers, rather than to equipment and
services ``used by members of the general public.'' We seek comment on
this analysis, as well as on the extent to which the equipment and
services used by private institutions but made available to the public,
such as communications equipment and services used by libraries and
schools, should be covered by the CVAA. More specifically, we seek
comment on what additional guidance by the Commission is needed to
define equipment and services that are ``used by members of the general
public.'' Finally, we seek comment on the extent to which section 716
covers products and services that are offered to the general public,
but which have been customized in minor ways to meet the needs of
private entities.
51. Consistent with Motorola's assertions, we propose to find
section 716's definition of advanced communications services not to
extend to public safety communications networks and devices and find
that these networks and devices are ``equipment and services that are
not offered directly to the public.'' We agree that the Commission's
recent proposal not to apply its hearing aid compatibility requirements
to public safety equipment is instructive here. We note, however, that
employers still have obligations under the ADA, and agree with CSD that
``to the extent possible, public safety systems should be designed to
accommodate the needs of deaf [and] hard-of-hearing employees and
employees with other disabilities.'' We seek comment on this analysis.
6. Waivers for Services or Equipment Designed for Purposes Other Than
Using ACS
52. Section 716(h)(1) of the Act states: The Commission shall have
the authority, on its own motion or in response to a petition by a
manufacturer or provider of [ACS] or any interested party, to waive the
requirements of [section 716] for any feature or function of equipment
used to provide or access [ACS], or for any class of such equipment,
for any provider of [ACS], or for any class of such services that --(A)
is capable of accessing an [ACS]; and (B) is designed for multiple
purposes but is designed primarily for purposes other than using [ACS].
We note that, in making waiver decisions, the Commission generally
considers whether special circumstances exist that warrant deviation
from the general rule, and whether the waiver will serve the public
interest. In the October public notice, the Bureaus asked what factors
would be relevant to determining whether a product or service is
eligible for a waiver and whether there are any specific classes of
products or services that warrant the establishment of a categorical or
blanket waiver.
53. Both the Senate and House Reports state that section 716(h)
``provides the Commission with the flexibility to waive the
accessibility requirements for any feature or function of a device that
is capable of accessing advanced communications services but is, in the
judgment of the Commission, designed primarily for purposes other than
accessing advanced communications.'' Consistent with the statutory
language and legislative history, we propose to focus our inquiry on
determining whether the offering is designed primarily for purposes
other than using ACS.
54. In making our waiver assessment, we agree with commenters that
the ``core'' function of an offering is an issue relevant to our
analysis, we also agree with the IT and Telecom RERCs's suggestion that
the ``primary feature of a multi-feature device or service [may] vary
from person to person.'' Furthermore, we do not believe the fact that a
``core'' function of a device is to play games to be dispositive of the
issue whether such device is entitled to waiver under section 716(h).
As the IT and Telecom RERCs note, ``[g]aming is used for education,
rehabilitation, and social interaction [and] * * * should not be
exempted simply because the basic feature is a game.'' We seek comment
on this analysis. We also seek comment on AFB's contentions that ``how
[a product] is marketed'' and ``[how] most people think of the device''
should not be relevant to our analysis; rather, ``[t]he issue is
whether the advanced communications features and functions can be
operated apart from the device's [primary] functions.''
55. ESA also suggests that why consumers access the gaming products
is an important consideration: ``Consumers do not play an online game,
[for example], as a means of accessing chat--a consumer in search of a
general purpose messaging service will find simpler, more direct
alternatives than navigating through the various features of a gaming
device or online game service.'' We seek comment on this assertion and
on whether how consumers actually use the communications component of a
multi-purpose device or service is relevant to our assessment of the
primary purpose for which a device or service was designed. In
addition, we seek comment on ESA's proposal that we consider as part of
our waiver determination whether the offering is designed for a
``specific class of users who are using the ACS features in support of
another task.''
56. We also seek comment on the process that we should adopt for
determining whether to waive the requirements of section 716 and
specifically on the extent to which we need to adopt any procedures to
ensure that such process is efficient and effective. Alternatively, we
seek comment on whether we should handle waivers as we have in the
normal course pursuant to Sec. 1.3 of the Commission's rules. We agree
with commenters who state that we should ``incorporate protections for
confidential information'' and propose that parties seeking waivers be
able to request confidential treatment of information pursuant to Sec.
0.459 of the Commission's rules. At the same time, we agree with AAPD
that, to the extent possible, the process should be ``transparent and
public,'' and propose to seek comment on any waiver petition that we
receive pursuant to section 716(h). We seek comment on these proposals.
57. We also recognize the need, after appropriate consideration,
for making waiver determinations in an ``expeditious manner,'' although
we
[[Page 13808]]
propose not to ``incorporate an automatic grant date for waiver
requests'' as TIA urges. We note that TIA requests that ``if the
Commission fails to timely act on a good faith waiver request, the
company in question [should] be able to initiate the product or service
without penalty, and incorporate accessibility features in a reasonable
time frame prospectively.'' Given that such a ``deemed granted''
provision is not contemplated by the statute, we do not intend to
propose the framework outlined by TIA. We seek comment on this
analysis.
58. In addition, in light of the fact that, as the NFB observes,
``[t]echnology is ever changing and the `primary purpose' of multi-
purpose products is always evolving,'' we seek comment on AAPD's
assertion that ``there should be no permanent waivers.'' Should waivers
be temporary, and, if so, what should the duration of the waivers be?
If we decide that waivers should only be temporary, should we establish
a process for renewing waivers, and, if so, should the factors we
consider for renewal vary from the factors we consider for the original
waiver grant?
59. We also seek comment on whether we should consider waivers for
a ``class'' of services or equipment under this section and what
specific showing is needed to justify such waivers. Several commenters
suggest that we should grant blanket waivers in order to support
innovation and competition. For example, Microsoft states that
``[g]ranting prospective categorical waivers is essential to encourage
manufacturers and service providers to build communication features
into services and equipment devices that do not have as their core
purpose advanced communications * * * [f]ostering this innovation will
enrich the communications choices and solutions available to all
consumers, including those with disabilities.'' In contrast, many
consumer commenters suggest that blanket waivers are never appropriate,
given rapid technological advancement and the belief that ``much
accessibility and usability will be accomplished through software and
related changes.''
60. We seek further comment on the specific factors that we should
consider in determining whether a particular ``class'' of services or
equipment should be granted a waiver. How can we determine what
services or equipment are similarly situated enough to be designated a
``class''? Is it possible to structure a blanket waiver in such a way
as to address consumers' concerns that any such waiver could quickly
become outdated? Are there specific classes of services or equipment
that we should consider waiving in our final rules on section 716? If
we do decide to grant waivers for an entire class of services or
equipment, should such waivers be permanent or temporary? As discussed
above (for individual waivers), should we establish a renewal and/or
revocation process for categorical waivers?
7. Exemptions for Small Entities
61. Section 716(h)(2) states that ``the Commission may exempt small
entities from the requirements of this section.'' While the Senate
Report did not discuss this provision, the House Report notes that
under this section, the Commission may ``waive the accessibility
requirements for certain small businesses and entrepreneurial
organizations'' because they ``may not have the legal, financial, or
technical capability to incorporate accessibility features.''
Otherwise, the Report notes, the ``application of these requirements in
this limited case may slow the pace of technological innovation.'' It
also states that ``the Commission is best suited to evaluate and
determine which entities may qualify for this exemption,'' and that it
expects we will consult with the Small Business Administration
(``SBA'') when defining the small entities to be exempted.
62