Reporting Requirements for U.S. Providers of International Telecommunications Services, 42613-42625 [2011-18153]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 76, Number 138 (Tuesday, July 19, 2011)]
[Proposed Rules]
[Pages 42613-42625]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18153]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 0, 43, and 63

[IB Docket No. 04-112; FCC 11-76]


Reporting Requirements for U.S. Providers of International 
Telecommunications Services

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) is reviewing its reporting requirements for providers of 
international telecommunications services. The Commission proposes to 
amend its reporting requirements for providers of international 
telecommunications services and transmission facilities in order to 
simplify the filing of the annual traffic and revenue report and the 
annual circuit-status report and modernize the information collected 
under those reports. The Commission also proposes to amend its rules to 
create a new annual services report designed to obtain basic 
information about providers of international telecommunications 
services and to update contact information. The Commission also 
proposes to amend its rules to clarify the confidential treatment of 
certain disaggregated information reported under the traffic and 
revenue report and the circuit-status report. This action is part of 
the Commission's comprehensive review of its international reporting 
requirements and is intended to remove unnecessary

[[Page 42614]]

information collections and tailor its information collections to the 
current state of the international telecommunications market.

DATES: Submit comments on or before August 18, 2011, and replies on or 
before September 2, 2011. Paperwork Reduction Act (PRA) comments should 
be on or before September 19, 2011.

ADDRESSES: You may submit comments, identified by Docket No. 04-112, 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://fjallfoss.fcc.gov/ecfs2/. 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, 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 Krech, John Copes, or Sean 
O'More, Policy Division, International Bureau, FCC, (202) 418-1460 or 
via the Internet at mail to: David.Drech@fcc.gov, John.Copes@fcc.gov, 
and Sean.O'More@fcc.gov. On PRA matters contact Cathy Williams, Office 
of the managing Director, FCC (202) 418-2918 or via the Internet at 
mail to: Cathy.Williams@fcc.gov.

SUPPLEMENTARY INFORMATION: This is a summary of the Further Notice of 
Proposed Rulemaking portion of the Commission's First Report and Order 
and Further Notice of Proposed Rulemaking, IB Docket No. 04-112, FCC 
11-76, adopted May 12, 2011, and released May 13, 2011. The full text 
of the First Report and Order and Further Notice of Proposed Rulemaking 
is available for inspection and copying during normal business hours in 
the FCC Reference Center, 445 12th Street, SW., Washington, DC 20554. 
The document also is available for download over the Internet at https://transition.fcc.gov/Daily_Release/Daily_Business/2011db0513/FCC-11-76A1.pdf. The complete text also may be purchased from the Commission's 
copy contractor, Best Copy and Printing, Inc. (BCPI), located in Room 
CY-B402, 455 12th Street, SW., Washington, DC 20554. Customers may 
contact BCPI at its Web site: https://www.bcpiweb.com or call 1-800-378-
3160.

Comment Filing Procedures

    Pursuant to 47 CFR 1.415, 1.419, interested parties my file 
comments and reply comments on or before the dates indicated above. 
Comments may be filed using the Commission's Electronic Comment Filing 
System (ECFS) or by hand delivery. See Electronic Filing of Documents 
in Rulemaking Proceedings, 63 FR 24121 (1998).
     Electronic Filers: Comments may be filed using the 
Commission's Electronic Comment Filing System (ECFS) at https://fjallfoss.fcc.gov/ecfs2/. See Electronic Filing of Documents in 
Rulemaking Proceedings, 63 FR 24121 (1998).
     Paper Filers: Parties who choose to file by paper must 
file an original and one copy 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. All filings must be addressed to the Commission's 
Secretary, Office of the Secretary, Federal Communications Commission.
    [cir] All hand-delivered or messenger-delivered paper filings for 
the Commission's Secretary must be delivered to FCC Headquarters at 445 
12th St., SW., Room TW-A325, Washington, DC 20554. The filing hours are 
8 a.m. to 7 p.m. All hand deliveries must be held together with rubber 
bands or fasteners. Any envelopes and boxes must be disposed of before 
entering the building.
    [cir] 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.
    [cir] U.S. Postal Service first-class, Express, and Priority mail 
must be addressed to 445 12th Street, SW., Washington, DC 20554.

Summary of Notice of Proposed Rulemaking

    1. In the First Report and Order and Further Notice of Proposed 
Rulemaking, the Federal Communications Commission (Commission) 
continues its comprehensive review of the international reporting 
requirements for U.S. providers of international telecommunications 
services. In the First Report and Order portion of the document, which 
is published elsewhere in this issue, the Commission retained the 
annual international traffic and revenue and circuit status reporting 
requirements, 47 CFR 43.61(a) and 43.82. Although the Commission is 
retaining the annual international traffic and revenue and circuit-
status reports, it believes that those reporting requirements can and 
should be modernized and streamlined. This FNPRM sets forth a number of 
proposed changes to the reporting requirements and seeks comment on 
those proposals.
    2. In the Notice of Proposed Rulemaking (NPRM), 69 FR 29676, May 
25, 2004, the Commission made a number of proposals for changes to the 
reporting requirements, and the Staff Recommendations in the NPRM 
discussed several more possible changes. Since then, the Commission 
received formal comments in this proceeding, held meetings with the 
carriers, and received written ex parte comments. Based on that input 
and further evaluation of the reporting requirements and the type of 
information that the Commission needs, the Commission altered and 
refined many of those proposals. In this FNPRM, the Commission seeks 
comment on these revised proposals, and seeks to refresh the record on 
some of the proposals previously discussed in the NPRM since the 
comments on those proposals were filed almost seven years ago. The 
Commission has also identified entities that provide international 
communications services but do not currently file traffic and revenue 
or circuit-status reports. It seeks comment whether public interest 
requires that the Commission obtain information from these entities. 
The Commission also seeks comment on proposals to clarify the 
confidential treatment of certain disaggregated information reported 
under the traffic and revenue report and the circuit-status report.
    3. Consolidation of Traffic and Revenue Report and Circuit-Status 
Report. The Commission proposes to consolidate the traffic and revenue 
report, 47 CFR 43.61(a), and the circuit-status report, 43.82, into one 
rule, the proposed 47 CFR 43.62, to adopt a new filing manual to cover 
both reports and to consolidate the current separate filing dates for 
the two reports into one date. Currently, carriers must file annual 
circuit-status reports on or before March 31 and must file the annual 
traffic and revenue reports on or before July 31. The Commission 
proposes to require filing entities to file both reports on or before 
May 1. The Commission also proposes to create a single filing manual 
with instructions for filing both the annual traffic and revenue and 
the circuit-status reports. The Commission

[[Page 42615]]

believes a consolidated filing manual would be more user friendly than 
two separate manuals, would provide consistent definitions and would 
ensure that information is reported in a more uniform manner.

Proposed Changes to the Reporting Requirements

    4. Services Report. The Commission proposes to require all filing 
entities to file an annual Services Report. The Services Report would 
consist of a Registration Form and a Services Checklist. The 
Registration Form would seek basic information about a filing entity's 
filing and about the entity itself--such as address, phone number, e-
mail address, and the international section 214 authorizations held, if 
any. The Services Checklist would contain a series of boxes that filing 
entities would check to provide some basic information about their 
operations, if any, during the previous year.
    5. Changes to the Annual Traffic and Revenue Report. The Commission 
seeks comment on a variety of proposals to the annual traffic and 
revenue report that it believes will streamline the report by 
eliminating the reporting of unnecessary information, while modernizing 
the report by requiring reporting of information more relevant to the 
current state of the international telecommunications market. First, 
the Commission proposes to eliminate the use of billing codes that 
require carriers to disaggregate their international telephone message 
service (IMTS) traffic to report various routing and billing 
arrangements. In their place, the Commission proposes to adopt a series 
of filing schedules that would allow filing entities to report their 
traffic on a more aggregated basis. The Commission also proposes to 
eliminate the requirement that filing entities report the number of 
IMTS messages (i.e., calls) they handle. The Commission has never 
needed to use the number of IMTS calls in performing its analyses and 
sees no reason to continue to require filing entities to report them. 
The Commission also proposes to eliminate the requirement that filing 
entities report a regional total for tier IMTS and private line 
traffic.
    6. The Commission proposes to require filing entities to 
disaggregate the minutes terminated on foreign networks and settlement 
payouts between calls terminated on fixed line networks and those 
terminated on mobile networks. In recent years, many foreign carriers 
have instituted significantly different settlement rates for call 
completion services to fixed-line and mobile networks, and these 
differences vary substantially by route. The Commission is concerned 
that the settlement rates for terminating U.S.-billed IMTS calls on 
mobile networks may be excessive, not based on costs, and 
discriminatory. Because there is little information currently available 
on mobile settlement rates, the Commission believes the public interest 
requires it to gather additional information on such rates. The 
Commission needs this information to monitor the evolution of mobile 
settlement rates as basis for taking corrective action if it finds such 
action necessary in the future.
    7. The Commission proposes to require filing entities to report 
their world-total IMTS traffic and revenues by customer category 
(residential and mass market, business and government, U.S. resellers, 
and reoriginated foreign traffic) and by routing arrangement (U.S.-
billed facilities IMTS, IMTS resale, and traditional transiting IMTS). 
This information appears to be essential to understanding the 
international telecommunications markets. Specifically, the Commission 
proposes to require world-total IMTS traffic and revenue data be 
disaggregated for each of the following customer classes: (1) 
``Residential and mass market;'' (2) ``business and government;'' and 
(3) ``U.S. resellers.'' Carriers would be required to report the total 
minutes and revenues associated with reoriginated traffic on a world-
total basis. This proposal simplifies the Staff Recommendations in the 
NPRM by limiting disaggregation of IMTS data by customer and routing 
arrangement only to world-total IMTS traffic data. Obtaining 
information on service sold to various classes of customers and through 
various routing arrangements would give the Commission additional 
information it needs to monitor the U.S. IMTS market.
    8. The Commission proposes to require filing entities to allocate 
their non-route-specific revenues to specific U.S. international 
routes. Non-route-specific revenues are those revenues for 
international services that are not directly associated with individual 
calls or, in the case of private lines, with specific lines. They 
include monthly recurring fees for service plans that include 
international service an other revenue that cannot be identified with 
particular destination countries. The Commission seeks comment on 
whether to set out a specific allocation method or to allow each filing 
entity to determine an allocation method appropriate for its unique 
situation. The Commission also proposes that filing entities identify 
the percentage of revenue for U.S.-billed IMTS subject to the 
allocations procedures.
    9. The Commission proposes to have filing entities report 
traditional transiting traffic on a world-total basis. It proposes to 
retain the requirement that filing entities include the terminating leg 
of traffic that they reoriginated for a foreign carrier in their route-
specific data, but no longer report the originating leg. Filing 
entities would also report reoriginated traffic on a world-total basis. 
In addition, the Commission proposes to require filing entities to 
report hubbed or reoriginated traffic on a world-total basis. Filing 
entities should report IMTS traffic that goes through a ``spot market'' 
as part of their facilities IMTS or resale IMTS, as appropriate. The 
Commission proposes that filing entities include country-beyond and 
country-direct services, as well as call-back services, in their U.S.-
billed traffic and revenue data.
    10. The commission proposes that service providers with less than 
$5 million in IMTS resale revenues for the annual reporting period, and 
who do not provide facilities IMTS, should be exempted from filing 
their IMTS resale traffic and revenue data. It also proposes to 
eliminate the requirements that filing entities submit a list of the 
destinations to which they provide IMTS resale service. With a $5 
million threshold, in 2009 over 1,100 carriers would not have needed to 
file traffic and revenue data. The 86 carriers that would have filed 
traffic and revenue data in 2009 under a $5 million threshold comprised 
96 percent of the IMTS resale revenues for that year.
    11. The Commission proposes to eliminate the current requirement 
that filing entities break down their private line service data into 
six categories based on the speed (bits per second) of the service. It 
proposes to continue to require filing entities to report their private 
line services provided over owned facilities on a route-specific basis, 
but that filing entities report their circuits and revenues for service 
provided over resold circuits on a world-total basis only. The 
Commission proposes that filing entities report their data services 
with miscellaneous services rather than their private line services. It 
proposes to streamline the reporting requirements for miscellaneous 
services by eliminating the current requirement to report by world 
region and to report traffic volumes (e.g., minutes, messages, lines, 
etc.) or payouts to foreign carriers. The Commission proposes to 
streamline the reporting requirement for miscellaneous and data 
services by only requiring filing entities to report services for

[[Page 42616]]

which they have revenues of $5 million or more. Filing entities would 
report each of their miscellaneous and data services with $5 million or 
more in revenue by providing the name of the service, a brief 
description of the service, and the world total revenue for the 
service.
    12. Proposed Changes to the Circuit-Status Report. The Commission 
finds that although it continues to need international circuit-status 
data, it can simplify the reporting requirement and still obtain the 
information that it needs. The Commission therefore proposes to 
streamline the circuit-status reporting requirements by eliminating 
reporting by service categories and the reporting of derived circuits.

Possible New Filing Entities

    13. Providers of Interconnected VoIP Service. The Commission seeks 
comment whether it should require providers of interconnected Voice 
over Internet Protocol (VoIP) service, see 47 CFR 9.3, to submit data 
regarding their provision of international telephone services under the 
proposed streamlined reporting rules. Specifically, should the 
Commission require interconnected VoIP providers to report their 
international voice traffic and revenue in the same manner that 
carriers report their IMTS traffic and revenue? International voice 
traffic generated by interconnected VoIP service appears to constitute 
a significant and growing component of the U.S. international voice 
traffic market, and the Commission is concerned that it may not be to 
able understand the IMTS marking without data regarding international 
interconnected VoIP traffic. The Commission also seeks comment on its 
legal authority to have interconnected VoIP providers file 
international traffic and revenue data. Specifically, the Commission 
seeks comment on whether requiring interconnected VoIP service 
providers to meet certain of 47 CFR part 43 reporting requirements is 
reasonably ancillary to the effective performance of the Commission's 
statutory obligations under the Communications Act, 47 U.S.C. 151 et 
seq., and the Cable Landing License Act of 1921, 47 U.S.C. 35-39. The 
Commission also seeks comment whether it should require providers of 
VoIP service that may not conform to the definition of ``interconnected 
VoIP'' to report their international voice traffic and revenue data, 
including any entities other than interconnected VoIP providers that 
may have access to the information needed to provide international 
traffic and revenue data for interconnected VoIP.
    14. Owners of Non-Common Carrier International Circuits. The 
Commission seeks comment on whether non-common carrier international 
circuits should be reported in addition to common carrier circuits. At 
the time the Commission adopted the circuit-status reporting 
requirement, most circuits were provided by common carriers and almost 
all submarine cables were common carrier facilities. Increasingly, 
however, many of the facilities that are used for providing 
international services--submarine cable, satellite, and terrestrial--
are operated on a non-common carrier basis. The Commission seeks 
comment whether its statutory obligations under the Cable Landing 
License Act require it to gather information about the use of 
international non-common carrier circuits. Further the Commission seeks 
comment on whether it has authority under the Communications Act to 
require the reporting of international non-common carrier circuits.

Confidentiality

    15. The Commission generally treats traffic and revenue information 
submitted under 47 CFR 43.61 as non-confidential except for specific 
pieces of information such as transit information, and has accorded 
confidentiality to circuit-status information filed under 47 CFR 43.82. 
The Commission believes that it serves the public interest by making 
information filed with the Commission available to the public, subject 
to protections afforded by law. It recognizes that there is 
international traffic and revenue and circuit-status information that 
appropriately should be treated as confidential. It does not appear, 
however, that all such information filed with the Commission should be 
given blanket treatment as confidential and made unavailable for public 
inspection. On a going-forward basis, the Commission seeks to determine 
what information should be identified as ``not routinely available to 
the public under our rules.''
    16. Traffic and revenue information. The Commission proposes to 
identify traffic and revenue filed with the Commission that would be 
treated as not routinely available to the public. The Commission would 
consider other information to be routinely available for public 
inspection subject to our rules. For example, the Commission is 
proposing in the FNPRM to require service providers to disaggregate the 
traffic they terminate on foreign fixed-line networks from the traffic 
they terminate on foreign mobile networks. Such disaggregated reporting 
could raise competitive concerns for carriers. The Commission believes 
that it can accommodate such concerns in the same way it now treats 
disaggregated information in the current traffic and revenue report--it 
could adopt a proprietary schedule on which carriers report separately 
the traffic they terminate on foreign fixed-line and mobile networks. 
The Commission would keep such information confidential and allow 
filing entities to file a separate schedule in which they would 
aggregate the two methods of termination and thereby prevent 
competitors from deriving any specific cost information. Service 
providers would file this aggregated schedule in a separate, ``public'' 
version of their traffic and revenue reports that the Commission could 
then make routinely available to the public.
    17. The Commission proposes to provide in 47 CFR 0.457 that 
disaggregated revenue, traffic and payout data information would not be 
routinely available for public inspection. As further guidance for the 
public, the Commission would instruct the International Bureau to 
include in its Filing Manual detailed examples of records that would be 
so treated. Commenters should address whether this information or any 
other type of information that the Commission proposes that they 
provide should be considered disaggregated and treated as not routinely 
available for public inspection. Commenters should explain the basis 
for confidential treatment under the standards of 47 CFR 0.459(a)(1), 
with sufficient specificity to explain how public release of the 
information would be competitively harmful. Commenters should also 
address how the passage of time may make sensitive information non-
sensitive. Specifically, the Commission requests comment whether such 
information could be released after two years, without causing 
competitive harm.
    18. Revised Circuit-Status Report. In the FNPRM, the Commission 
proposes revisions to the circuit status data to be reported. The 
Commission requests comment on whether the new, simplified circuit-
status report that proposed in the FNPRM contains competitively 
sensitive information and whether they believe there will be a need for 
the information to be kept confidential. As with the traffic and 
revenue information, the Commission proposes to identify the circuit 
information that should continue to be treated as not routinely 
available.

[[Page 42617]]

Paperwork Reduction Act of 1995 Analysis

    19. The Further Notice of Proposed Rulemaking portion of this First 
Report and Order and Further notice of Proposed Rulemaking contains 
proposed new or modified information collection requirements. As part 
of the Commission's continuing effort to reduce paperwork burdens, the 
Commission 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. PRA 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; (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; and (e) ways to further reduce the information 
collection burden on small business concerns with fewer than 25 
employees. In addition, pursuant to the Small Business Paperwork Relief 
Act of 2002, Public Law 107-198, see U.S.C. 3506(c)(4), the Commission 
seeks specific comment on how it might ``further reduce the information 
collection burden for small business concerns with fewer than 25 
employees.''
    20. To view a copy of this information collection request (ICR) 
submitted to OMB: (1) Go to the web page https://www.reginfo.gov/public/do/PRAMain, (2) look for the section of the Web page called ``Currently 
Under Review'' (3) click on the downward-pointing arrow in the ``Select 
Agency'' box below the ``Currently Under Review,'' heading, (4) select 
''Federal Communications Commission'' from the list of agencies 
presented in the ``Select Agency'' box, (5) click the ``Submit'' button 
to the right of the ``Select Agency'' box (6) when the list of FCC ICRs 
currently under review appears, look for the Title of this ICR and then 
click on the ICR Reference Number. A copy of the FCC submission to OMB 
will be displayed.
    21. The proposed information collection requirements are as 
follows:
    OMB Control Number: 3060-xxxx.
    Title: Section 43.62, Annual Reporting Requirements for U.S. 
Providers of International Telecommunications Services and Circuits.
    Form No.: N/A.
    Type of Review: New Collection.
    Respondents: Businesses or other profit entities.
    Number of Respondents and Responses: 2,200 respondents and 2,976 
responses.
    Estimated Time per Response: 1 hour to 200 hours.
    Frequency of Response: Annual reporting requirements.
    Obligation to Respond: Required to obtain or retain benefits. The 
statutory authority for these proposed information collections is found 
at under Sections 1, 4(i)-4(j), 11, 201-205, 211, 214, 219, 220, 
303(r), 309 and 403 of the Communications Act of 1934, as amended, 47 
U.S.C. 151, 154(i)-154(j), 161, 201-205, 211, 214, 219-220, 303(r), 
309, 403.
    Total Annual Burden Hours: 107,172 hours.
    Total Annual Costs: $15,300.
    Nature and Extent of Confidentiality: An assurance of 
confidentiality is not offered because this information collection does 
not require the collection of personally identifiable information (PII) 
from individuals.
    Privacy Act Impact Assessment: No impacts.
    Needs and Uses: On May 12, 2011, the Commission adopted a First 
Report and Order and Further Notice of Proposed Rulemaking in (FCC 11-
76) in Reporting Requirements for U.S. Providers of International 
Telecommunications Services, Amendment of Part 43 of the Commission's 
Rules, IB Docket No. 04-112 (rel. May 13, 2011) (Part 43 Review Order). 
That Order did two things. First, in the First Report and Order portion 
of the Part 43 Review Order (covered by a separate supporting 
statement), the Commission retained the annual traffic and revenue 
report currently contained in section 43.61 of the Commission's rules, 
but removed two reports that were also contained in that section. Also 
in the First Report and Order portion of the Part 43 Review Order, the 
Commission retained the annual circuit-status report currently 
contained in section 43.82 of the rules.
    22. Second, the Further Notice of Proposed Rulemaking (FNPRM) 
portion of the Part 43 Review Order, proposed to modify both the 
traffic and revenue report and the circuit-status report to streamline 
them and improve the usefulness of the information the entities filing 
the reports will submit. The FNPRM also proposed to remove the current 
sections 43.61 and 43.82 and to consolidate the revised annual traffic 
and revenue and annual circuit-status reports into a new section 43.62. 
The FNPRM further proposed to replace the existing filing manuals for 
each report with one new, consolidated filing manual covering both 
reports.

Initial Regulatory Flexibility Analysis

    23. As required by the Regulatory Flexibility Act (RFA),\1\ the 
Commission has prepared this present Initial Regulatory Flexibility 
Analysis (IRFA) of the possible significant economic impact on small 
entities by the policies and rules proposed in this Further Notice of 
Proposed Rulemaking (FNPRM).\2\ Written public comments are requested 
on this IRFA. Comments must be identified as responses to the IRFA and 
must be filed on or before the dated indicated above. The Commission 
will send a copy of this FNPRM, including the IRFA, to the Chief 
Counsel for Advocacy of the Small Business Administration (SBA).\3\ In 
addition, the FNPRM and IRFA (or summaries thereof) will be published 
in the Federal Register.\4\
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    \1\ See 5 U.S.C. 603. The FRA, see 5 U.S.C. 601-612 has been 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA), Pub. L. 104-121, Title II, 110 Stat. 857 (1996).
    \2\ The Commission notes that it may certify this proceeding 
under 5 U.S.C. 605, because its action will not have a significant 
economic effect on a substantial number of small entities (as 
discussed).
    \3\ See 5 U.S.C. 603(a).
    \4\ See id.
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A. Need for, and Objectives of, the Proposed Rules

    24. The Commission initiated this comprehensive review of the 
reporting requirements imposed on U.S. carriers providing international 
telecommunications services. The Commission believes that the proposals 
contained in the FNPRM will make it easier for carriers, both small and 
large, to provide the information required by the rules. Other 
proposals will provide the Commission with information it needs but 
does not receive on an annual basis. In addition, section 11 of the 
Telecommunications Act of 1996 directs the Commission to undertake, in 
every even-numbered year beginning in 1998, a review of certain 
regulations issued under the Communications Act of 1934, as amended.\5\
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    \5\ Pub. L. 104-104, 110 Stat. 56 (1996).
---------------------------------------------------------------------------

    25. The objective of the FNPRM in this proceeding is to improve the 
reporting requirements imposed on carriers providing international 
telecommunications services in the proposed 47 CFR 43.62(a) and 
43.62(b). Specifically, the FNPRM proposes to simplify, consolidate, 
and revise the

[[Page 42618]]

annual traffic and revenue reporting requirements and the circuit-
status reporting requirements. The rule also proposes to require 
entities to file some additional information in the traffic and revenue 
report that they do not now file. Additionally, the rule proposes to 
relieve service providers with annual revenues less than $5 million 
from filing traffic and revenue reports for IMTS resale and the 
provision of international miscellaneous services. Finally, the rule 
proposes to require all providers of international telecommunications 
services to file an annual services report that updates their contact 
information and indicates whether or not they provided service during 
the preceding calendar year. The FNPRM also seeks comment whether to 
require some additional entities that provide international 
telecommunications services to file the annual traffic and revenue 
report and some additional entities that provide international 
facilities to file the annual circuit-status report.
    26. All U.S. carriers providing international telecommunications 
services are required to file an annual report of their traffic and 
revenues under 47 CFR 43.61(a). Under the proposed consolidated 47 CFR 
43.62(a), those same carriers (and possibly some additional entities 
that provide international telecommunications services) will file 
similar traffic and revenue information. All U.S. facilities-based 
carriers providing international telecommunications services are 
required to file an annual report on the status of their circuits 
pursuant to 47 CFR 43.82. Under the proposed 47 CFR 43.62(b), in this 
proceeding, those same carriers (and possibly some other providers of 
international telecommunications facilities) will file similar circuit-
status information. The information derived from the international 
revenue and traffic report and circuit-status report is critical in 
understanding the international telecommunications market. These 
reports are the only source of publicly available information of this 
nature.
    27. The information obtained from these reports is used extensively 
by the Commission, the industry, other government agencies, and the 
public. The Commission uses the information to evaluate applications 
for international facilities, track the development of the 
international telecommunications market and the competitiveness of each 
service and geographical market, formulate rules and policies 
consistent with the public interest, monitor compliance with those 
rules and policies, and guage the competitive effect of its decisions 
on the market. Carriers use the information to track the balance of 
payments in international communications services and for market 
analysis purposes. Carriers and potential entrants use the information 
for, among other things, assessment of market opportunities and to 
monitor competition in markets. The Commission, along with other 
government agencies such as the Department of Justice, uses the 
information in merger analyses and negotiations with foreign countries. 
In addition, the information contained in the circuit-status report 
allows the Commission to comply with the statutory requirements of the 
Omnibus Budget Reconciliation Act of 1993.

B. Legal Basis

    28. The FNPRM is adopted pursuant to section 1, 4(i) and (j), 11, 
201-205, 211, 214, 219, 220, 303(r), 309, and 403 of the Communications 
Act of 1934 as amended, 47 U.S.C. 151, 154(i), 154(j), 161, 201-205, 
211, 214, 219, 220, 303(r), 309, and 403, and the Cable Landing License 
Act of 1921, 47 U.S.C. 35-39.

C. Description and Estimate of the Number of Small Entities to Which 
the Proposed Rules Will Apply

    29. The RFA directs agencies to provide a description of, and, 
where feasible, an estimate of the number of small entities that may be 
affected by the proposals, if adopted.\6\ The RFA generally defines the 
term ``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' \7\ In addition, the term ``small business'' has the 
same meaning as the term ``small business concern'' under the Small 
Business Act.\8\ 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 
Small Business Administration (SBA).\9\
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    \6\ 5 U.S.C. 603(b)(3).
    \7\ 5 U.S.C. 601(6).
    \8\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small-business concern'' in the Small Business Act, 15 U.S.C. 
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a 
small business applies ``unless an agency, after consultation with 
the Office of Advocacy of the Small Business Administration and 
after opportunity for public comment, establishes one or more 
definitions of such term which are appropriate to the activities of 
the agency and publishes such definition(s) in the Federal 
Register.''
    \9\ 5 U.S.C. 632.
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1. Traffic and Revenue Report
    The proposals in the FNPRM apply only to entities providing 
international common carrier services pursuant to 47 U.S.C. 214; 
entities that operate a telecommunications ``spot market'' that 
themselves carry international traffic; entities providing domestic or 
international wireless common carrier services under 47 U.S.C. 309; 
entities providing common carrier satellite facilities under 47 U.S.C. 
309; entities licensed to construct and operate submarine cables under 
the Cable Landing License Act on a common carrier basis; and entities 
that provide international terrestrial telecommunications facilities on 
a common carrier basis (including incumbent local exchange carriers 
that offer such facilities). At present, carriers that provide 
international telecommunications services are required to file the 
annual traffic and revenue report. The FNPRM seeks comment on whether 
to have entities providing VoIP service interconnected with the public 
switched telephone network also file the traffic and revenue report. 
The FNPRM also proposes to have all filing entities file a Services 
Report with information about the filing entity--such as address, phone 
number, e-mail address, and the international section 214 
authorizations held by the carrier. Further, the FNPRM proposes a 
number of changes that would simplify the traffic and revenue report, 
as well as require some new information.
    31. The entities that the FNPRM proposes to require to file the 
traffic and revenue and reports are a mixture of both large and small 
entities. The Commission has not developed a small business size 
standard directed specifically toward these entities. However, as 
described below, these entities fit into larger categories for which 
the SBA has developed size standards that provide these facilities or 
services.
    32. Facilities-based Carriers. Facilities-based providers of 
international telecommunications services would fall into the larger 
category of 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.\10\ 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

[[Page 42619]]

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.\11\ According to Commission data, 359 companies reported that 
their primary telecommunications service activity was the provision of 
interexchange services.\12\ Of these 359 companies, an estimated 317 
have 1,500 or fewer employees and 42 have more than 1, 500 
employees.\13\ Consequently, the Commission estimates that the majority 
of interexchange service providers are small entities that may be 
affected by rules adopted pursuant to the FNPRM.
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    \10\ 13 CFR 121.201, NAICS code 517110.
    \11\ U.S. Census Bureau, American FactFinder, 2007 Economic 
Census, https://factfinder.census.gov, (find ``Economic Census'' and 
choose ``get data.'' Then, under ``Economic Census data sets by 
sector * * *'' choose ``Information.'' Under ``Subject Series,'' 
choose ``EC0751SSSZ5: Employment Size of Firms for the U.S.: 2007.'' 
Click ``Next'' and find data related to NAICS code 517110 in the 
left column for ``Wired telecommunications carriers'') (last visited 
March 2, 2011).
    \12\ See Trends in Telephone Service at Table 5.3.
    \13\ See id.
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    33. In the 2009 annual traffic and revenue report, 38 facilities-
based and facilities-resale carriers reported approximately $5.8 
billion in revenues from international message telephone service 
(IMTS). Of these, three reported IMTS revenues of more than $1 billion, 
eight reported IMTS revenues of more than $100 million, 10 reported 
IMTS revenues of more than $50 million, 20 reported IMTS revenues of 
more than $10 million, 25 reported IMTS revenues of more than $5 
million, and 30 reported IMTS revenues of more than $1 million. Based 
solely on their IMTS revenues the majority of these carriers would be 
considered non-small entities under the SBA definition.\14\
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    \14\ See 13 CFR 121.201, NAICS Code at Subsector 517--
Telecommunications.
---------------------------------------------------------------------------

    34. The 2009 traffic and revenue report also shows that 45 
facilities-based and facilities-resale carriers (including 14 who also 
reported IMTS revenues) reported $683 million for international private 
line services; of which four reported private line revenues of more 
than $50 million, 12 reported private line revenues of more than $10 
million, 30 reported revenues of more than $1 million, 34 reported 
private line revenues of more than $500,000; 41 reported revenues of 
more than $100,000, while 2 reported revenues of less than $10,000.
    35. The 2009 traffic and revenue report also shows that seven 
carriers (including one that reported both IMTS and private line 
revenues, one that reported IMTS revenues and three that reported 
private line revenues) reported $50 million for international 
miscellaneous services, of which two reported miscellaneous services 
revenues of more than $1 million, one reported revenues of more than 
$500,000, two reported revenues of more than $200,000, one reported 
revenues of more than $50,000, while one reported revenues of less than 
$20,000. Based on its miscellaneous services revenue, this one carrier 
with revenues of less than $20,000 would be considered a small business 
under the SBA definition. Based on their private line revenues, most of 
these entities would be considered non-small entities under the SBA 
definition.
    36. IMTS Resale Providers. Providers of IMTS resale services are 
common carriers that purchase IMTS from other carriers and resell it to 
their own customers. 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.\15\ Census data for 2007 show that 1,523 firms provided 
resale services during that year. Of that number, 1,522 operated with 
fewer than 1,000 employees and one operated with more than 1,000.\16\ 
Thus under this category and the associated small business size 
standard, the majority of these resellers can be considered small 
entities. In the 2009 traffic and revenue report, 1,232 carriers 
reported that they provided IMTS on a pure resale basis.\17\ Based on 
their IMTS resale revenues, IMTS resale service is primarily provided 
by carriers that would be considered small businesses under the SBA 
definition. For example, of the 1,232 IMTS resale carrier, 644 carriers 
reported revenues of less than $10,000; 1,025 had revenues less than 
$500,000; and 1,068 had revenues less than $1 million.\18\ 
Consequently, the Commission estimates that the majority of IMTS 
resellers are small entities that may be affected by our action.
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    \15\ 13 CFR 121.201, NAICS code 517911.
    \16\ U.S. Census Bureau, American FactFinder, 2007 Economic 
Census, https://factfinder.census.gov, (find ``Economic Census'' and 
choose ``get data.'' Then, under ``Economic Census data sets by 
sector * * *,'' choose ``Information.'' Under ``Subject Series,'' 
choose ``EC0751SSSZ5: Employment Size of Firms for the US: 2007.'' 
Click ``Next'' and find data related to NAICS code 517911 in the 
left column for ``Telecommunications Resellers'') (last visited 
March 2, 2011).
    \17\ See FCC, International Bureau, Strategic Analysis and 
Negotiations Division, ``2009 International Telecommunications 
Data'' at page 1-2, Statistical Findings, and Table D at page 22 
(April 2011). FCC website location https://www.fcc.gov/ib/sand/mniab/traffic/.
    \18\ Id.
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    37. Wireless Carriers and Service Providers. Included among the 
providers of IMTS resale are a number of wireless carriers that also 
provide wireless telephony services domestically. The Commission 
classifies these entities as providers of Commercial Mobile Radio 
Services (CMRS). At present, most, if not all, providers of CMRS that 
offer IMTS provide such service by purchasing IMTS from other carriers 
to resell it to their customers. The Commission has not developed a 
size standard specifically for CMRS providers that offer resale IMTS. 
Such entities would fall within the larger category of wireless 
carriers and service providers. Below, for those services 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 an 
auction does not necessarily represent the number of small businesses 
currently in service. Also, the Commission does not generally track 
subsequent business size unless, in the context of assignments or 
transfers, unjust enrichment issues are implicated.
    38. Wireless Telecommunications Carriers (except Satellite). Since 
2007, the Census Bureau has placed wireless firms within this new, 
broad, economic census category.\19\ Prior to that time, such firms 
were within the now-superseded categories of Paging and Cellular and 
Other Wireless Telecommunications.\20\ Under the present and prior 
categories, the SBA has deemed a wireless business to be small if it 
has 1,500 or fewer employees.\21\ For the category of Wireless 
Telecommunications Carriers (except Satellite), Census data for 2007, 
which supersede data contained in the 2002 Census, show that there were 
1,383 firms that operated that year.\22\ Of

[[Page 42620]]

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, and Specialized 
Mobile Radio Telephony services.\23\ Of these, an estimated 261 have 
1,500 or fewer employees and 152 have more than 1,500 employees.\24\ 
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.
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    \19\ U.S. Census Bureau, 2007 NAICS Definitions: Wireless 
Telecommunications Categories (except Satellite), https://www.census.gov/naics/2007/def/ND517210.HTM (last visited March 2, 
2011).
    \20\ U.S. Census Bureau, 2002 NAICS Definitions: Paging, https://www.census.gov/epcd/naics02/def/NDEF517.HTM (last visited March 2, 
2011); U.S. Census Bureau, 2002 NAICS Definitions: Other Wireless 
Telecommunications, https://www.census.gov/epcd/naics02/def/NDEF517.HTM (last visited March 2, 2011).
    \21\ 13 CFR 121.201, NAICS code 517210 (2007 NAICS). The now-
superseded, pre-2007 CFR citations were 13 CFR 121.201, NAICS codes 
517211 and 517212 (referring to the 2002 NAICS).
    \22\ U.S. Census Bureau, American FactFinder, 2007 Economic 
Census, https://factfinder.census.gov, (find ``Economic Census'' and 
choose ``get data.'' Then, under ``Economic Census data sets by 
sector * * *,'' choose ``Information.'' Under ``Subject Series,'' 
choose ``EC0751SSSZ5: Employment Size of Firms for the US: 2007.'' 
Click ``Next'' and find data related to NAICS code 517210 in the 
left column for ``Wireless Telecommunications Carriers (except 
Satellite)'') (last visited March 2, 2011).
    \23\ See Trends in Telephone Service at Table 5.3.
    \24\ See id.
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    39. 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 
million for each of the three preceding years.\25\ The SBA has approved 
these definitions.\26\ 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.
---------------------------------------------------------------------------

    \25\ Amendment of the Commission's Rules to Establish Part 27, 
the Wireless Communications Service, GN Docket No. 96-228, Report 
and Order, 12 FCC Rcd 10785, 10879, para. 194 (1997).
    \26\ See Letter from Aida Alvarez, Administrator, SBA, to Amy 
Zoslov, Chief, Auctions and Industry Analysis Division, Wireless 
Telecommunications Bureau, FCC (filed Dec. 2, 1998).
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    40. Providers of Interconnected VoIP services. In addition to the 
carriers that now file the annual traffic and revenue report, the FNPRM 
seeks comment whether interconnected VoIP service providers should also 
file data on their international voice traffic. The entities that 
provide such services are a mix of large and small entities. We do not 
have information on the size of such VoIP providers. The 2007 Economic 
Census includes VoIP providers in a larger class called ``Internet 
Service Providers'' (ISPs), and classes such ISPs in two categories, 
depending upon whether the service is provided over the provider's own 
facilities (e.g., cable or DSL ISPs), or over client-supplied 
telecommunications connections (e.g., dial-up ISPs). The former are 
within the category of Wired Telecommunications Carriers.\27\ As a 
result, for the purpose of this IRFA we shall consider all such 
entities to be small entities within the meaning of the Small Business 
Act, which has an SBA small business size standard of 1,500 or fewer 
employees.\28\ The latter are within the category of All Other 
Telecommunications,\29\ which has a size standard of annual receipts of 
$25 million or less.\30\ Our proposal pertains to interconnected VoIP 
services, which could be provided by entities that provide other 
services such as email, 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.\31\ According to Census Bureau data for 2007, there were 367 
firms in this category that operated for the entire year.\32\ 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.\33\ Consequently, we 
estimate that the majority of interconnected VoIP providers are small 
entities.
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    \27\ U.S. Census Bureau, 2007 NAICS Definitions: Wired 
Telecommunications Carriers, https://www.census.gov/naics/2007/def/ND517110.HTM (last visited March 2, 2011).
    \28\ 13 CFR 121.201, NAICS code 517110 (updated for inflation in 
2008).
    \29\ U.S. Census Bureau, 2007 NAICS Definitions: All Other 
Telecommunications, https://www.census.gov/naics/2007/def/ND517919.HTM (last visited March 2, 2011).
    \30\ 13 CFR 121.201, NAICS code 517919 (updated inflation in 
2008).
    \31\ 13 CFR 121.201 NAICS code 519190. See also https://www.sba.gov./sites/default/files/Size_Standards_Table.pdf.
    \32\ https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=1200&-ds_name=EC0751SSSZ4&-_lang=en.
    \33\ https://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=1100&-ds_name=EC0751SSSZ4&-_lang=e
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    41. Spot Market operators. A ``spot market'' is a market where IMTS 
providers can buy or sell call completion services for calls, including 
IMTS calls. A customer of the spot market enters into a contract with 
the spot market owner to buy or sell call completion services by 
interconnecting at a spot market point of presence. The spot market 
owner acts as broker by facilitating the exchange of calls between spot 
market customers, who may not know each other's identity. The 
Commission has not developed a small business size standard 
specifically for operators of spot markets. As a result, for purposes 
of this IRFA, we shall consider all such entities to be small 
businesses.
2. Circuit-Status Report
    42. The proposals in the FNPRM apply only to entities that have 
international bearer circuits. The FNPRM proposes changes to the 
information that must be provided about international common carrier 
circuits. The FNPRM also seeks comment whether data should be reported 
regarding non-common carrier international circuits.
    43. Providers of International Telecommunications Transmission 
Facilities. According to the 2009 Circuit-Status Report, 75 U.S. 
international facility-based carriers filed information pursuant to 
Sec.  43.82 of the Commission's rules.\34\ Some of these providers 
would fall within the category of interexchange carriers, some would 
fall within the category of Wired Telecommunications Carriers, while 
others may not. The Commission has not developed a small business size 
standard specifically for provides 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.\35\ The circuit-status 
report does not include employee or revenue statistics, so we are 
unable to determine how many carriers could be considered small 
entities under the SBA standard. Although it is quite possible that a 
carrier could be considered small entities under the SBA standard. 
Although it is quite possible that a carrier could report a small 
amount of capacity and have significant revenues, we will consider 
those 75 carriers to be small entities at this time. In addition, of 
the 79 carrier that filed an annual circuit-status report for 2009, 
there were at least four carriers that reported no circuits owned or in 
use at the end of 2009.\36\
---------------------------------------------------------------------------

    \34\ See International Bureau Releases 2009 Year-End Circuit 
Status Report for U.S. Facilities-Based International Carriers; 
Capacity Use Shows Modest Growth, rel. Dec. 21, 2010. The report is 
available on the FCC Web site at https://www.fcc.gov/ib/pd/pf/csmanual.html.
    \35\ 13 CFR 121.201, NAICS code 517110.
    \36\ Id.
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    44. Satellite Telecommunications Providers. Other providers of

[[Page 42621]]

international transmission facilities are those that operate 
international common carrier and non-common carrier satellite systems. 
Such systems provide circuits to providers of international 
telecommunication services or provide circuits directly to end users. 
With respect to the circuits such systems provide to telecommunications 
service providers, those circuits are reported in the circuit-status 
reports of those providers. Circuits that operators of international 
satellite systems offer directly to end users are not now reported 
under the circuit-status report. It is those circuits that the FNPRM 
proposes to require operators of international satellite services to 
report in the circuit-status report. The Commission has not determined 
a size standard specifically for operators of international satellite 
systems that offer circuits directly to end users. However, two 
economic census categories address the satellite industry. Under SBA 
rules, the first category has a small business size standard of $15 
million or less in average annual receipts.\37\ The second category has 
a size standard of $25 million or less in annual receipts.\38\
---------------------------------------------------------------------------

    \37\ 13 CFR 121.201, NAICS code 517410.
    \38\ 13 CFR 121.201, NAICS code 517919.
---------------------------------------------------------------------------

    45. 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.'' \39\ Census Bureau data for 2007 show that 512 
Satellite Telecommunications firms that operated for that entire 
year.\40\ Of this total, 464 firms had annual receipts of under $10 
million, and 18 firms had receipts of $10 million to $24,999,999.\41\ 
Consequently, the Commission estimates that the majority of Satellite 
Telecommunications firms are small entities that might be affected by 
our action.
---------------------------------------------------------------------------

    \39\ U.S. Census Bureau, 2007 NAICS Definitions, Satellite 
Telecommunications, https://www.census.gov/naics/2007/def/ND517410.HTM (last visited March 2, 2011).
    \40\ U.S. Census Bureau, American FactFinder, 2007 Economic 
Census, https://factfinder.census.gov, (find ``Economic Census'' and 
choose ``get data.'' Then, under ``Economic Census data sets by 
sector * * *,'' choose ``Information.'' Under ``Subject Series,'' 
choose ``EC0751SSSZ4: Receipts Size of Firms for the U.S.: 2007.'' 
Click ``Next'' and find data related to NAICS code 517210 in the 
left column for ``Satellite Telecommunications'') (last visited 
March 2, 2011).
    \41\ Id.
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    46. 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. 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.'' \42\ For this 
category, Census Bureau data for 2007 show that there were a total 
2,383 firms that operated for the entire year.\43\ 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.\44\ Consequently, the 
Commission estimates that the majority of All Other Telecommunications 
firms are small entities that might be affected by our action.
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    \42\ U.S. Census Bureau, 2007 NAICS Definitions, All Other 
Telecommunications, https://www.census.gov/naics/2007/def/ND517919.HTM (last visited March 2, 2011).
    \43\ U.S. Census Bureau, American FactFinder, 2007 Economic 
Census, https://factfinder.census.gov, (find ``Economic Census'' and 
choose ``get data.'' Then, under ``Economic Census data sets by 
sector * * *,'' choose ``Information.'' Under ``Subject Series,'' 
choose ``EC0751SSSZ4: Receipts Size of Firms for the U.S.: 2007.'' 
Click ``Next'' and find data related to NAICS code 517919 in the 
left column for ``All Other Telecommunications'') (last visited 
March 2, 2011).
    \44\ Id.
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    47. Operators of Non-Common Carrier Undersea Cable Systems. The 
FNPRM seeks comment on whether data should be filed for international 
non-common carrier circuits on submarine cable facilities. Neither the 
Commission nor the SBA has developed a size standard specifically for 
operators of non-common carrier undersea cables. Such entities would 
fall within the large category of Wired Telecommunications Carriers. 
The size standard under SBA rules for that category is that such a 
business is small if it has 1,500 or fewer employees.\45\ 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 
carriers can be considered small entities.\46\ We do not have data on 
the number of employees or revenues of operators of non-common carrier 
undersea cables. Because providers of non-common carrier undersea 
cables do not now file an annual circuit-status report, we do not know 
how many such entities provide circuits directly to end users. We do 
know that a number of such entities pay regulatory fees on such 
circuits, but the names of such entities are confidential. Because we 
do not have information on the number of employees or their annual 
revenues, we shall consider all such providers to be small entities for 
purposes of this IRFA.
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    \45\ 13 CFR 121.201, NAICS code 517110.
    \46\ U.S. Census Bureau, American FactFinder, 2007 Economic 
Census, https://factfinder.census.gov, (find ``Economic Census'' and