Implementing the Provisions of the Communications Act of 1934, as Enacted by the Twenty-First Century Communications and Video Accessibility Act of 2010, 82240-82264 [2011-31160]
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Federal Register / Vol. 76, No. 251 / Friday, December 30, 2011 / Proposed Rules
No. 1283712–50–4) under 40 CFR
180.960 when used as a pesticide inert
ingredient in pesticide formulations as a
dispersing agent. The petitioner believes
no analytical method is needed because
2–Propenoic acid, 2-methyl-, 2ethylhexyl ester, telomere with 1dodecanethiol, ethenylbenzene and 2methyloxirane polymer with oxirane
monoether with 1,2-propanediol
mono(2-methyl-2-propenoate), hydrogen
2-sulfobutanedioate, sodium salt, 2,2′(1,2-diazenediyl)bis[2methylpropanenitrile]-initiated is
exempt from the requirement of a
tolerance based upon the definition of a
low-risk polymer under 40 CFR 723.250.
Therefore, an analytical method to
determine residues on treated crops is
not relevant. Contact: Alganesh Debesai,
(703) 308–8353, email address:
debesai.alganesh@epa.gov.
List of Subjects
Environmental protection,
Agricultural commodities, Feed
additives, Food additives, Pesticides
and pests, Reporting and recordkeeping
requirements.
Dated: December 21, 2011.
Lois Rossi,
Director, Registration Division, Office of
Pesticide Programs.
[FR Doc. 2011–33440 Filed 12–29–11; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 14
[CG Docket No. 10–213; WT Docket No. 96–
198; CG Docket No. 10–145; FCC 11–151]
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 seeks comment on the
implementation of certain provisions in
sections 716, 717, and 718 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. Specifically,
this document seeks comment on
whether to adopt a permanent
exemption for small entities that
provide advanced communications
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services (ACS). The document also
seeks comment on implementing
section 718 of the Act which requires
Internet browsers built into mobile
phones to be accessible to and usable by
persons who are blind or have a visual
impairment, unless doing so is
unachievable. This inquiry includes the
recordkeeping and enforcement
requirements related to section 718.
People with disabilities have often faced
technical challenges associated with the
use of Internet browsers, video
conferencing services, and the
accessibility of information content. The
CVAA attempts to bring existing
communications laws protecting people
with disabilities in line with 21st
Century technologies while providing
flexibility to the industry by allowing
for new and innovative ways to meet the
needs of people with disabilities. These
actions will promote rapid deployment
of and universal access to broadband
services for all Americans across the
country, which will in turn stimulate
economic growth and provide
opportunity.
DATES: Submit comments on or before
February 13, 2012, and reply comments
on or before March 14, 2012. Written
comments on the proposed information
collection requirements, subject to the
Paperwork Reduction Act (PRA) of
1995, Public Law 104–13, should be
submitted on or before February 28,
2012.
ADDRESSES: Federal Communications
Commission, 445 12th Street, SW.,
Washington, DC 20554. You may submit
comments, identified by FCC 11–151, or
by CG Docket Nos. 10–213 and 10–145,
and WT Docket No. 96–198, by any of
the following methods:
• 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 email: 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:
Rosaline Crawford, Consumer and
Governmental Affairs Bureau, at (202)
418–2075 or rosaline.crawford@fcc.gov;
Brian Regan, Wireless
Telecommunications Bureau, at (202)
418–2849 or brian.regan@fcc.gov; or
Janet Sievert, Enforcement Bureau, at
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(202) 418–1362 or janet.sievert@fcc.gov.
For additional information concerning
the Paperwork Reduction Act
information collection requirements
contained in this document, contact
Cathy Williams, Federal
Communications Commission, at (202)
418–2918, or via email
Cathy.Williams@fcc.gov.
This is a
synopsis of the Commission’s Further
Notice of Proposed Rulemaking
(FNPRM), document FCC 11–151,
adopted October 7, 2011, and released
October 7, 2011, in CG Docket Nos. 10–
213 and 10–145, and WT Docket No.
96–198. Simultaneously with the
FNPRM, the Commission issued a
Report and Order in CG Docket Nos. 10–
213 and 10–145, and WT Docket No.
96–198 (‘‘Accessibility Report and
Order’’). The full text of FCC 11–151
and copies of any subsequently filed
documents in this matter will be
available for public inspection and
copying during regular business hours
at the FCC Reference Information
Center, Portals II, 445 12th Street SW.,
Room CY–A257, Washington, DC 20554.
FCC 11–151 and copies of subsequently
filed documents in this matter may also
be purchased from the Commission’s
duplicating contractor at Portals II, 445
12th Street SW., Room CY–B402,
Washington, DC 20554. Customers may
contact the Commission’s duplicating
contractor at its web site,
www.bcpiweb.com, or by calling 1–(800)
378–3160. FCC-11-151 can also be
downloaded in Word or Portable
Document Format (PDF) at: https://
hraunfoss.fcc.gov/edocs_public/
attachment/FCC-11-151A1doc.
Pursuant to 47 CFR 1.415 and 1.419,
interested parties may file comments
and reply comments on or before the
dates indicated in the DATES section of
this document. Comments may be filed
using: (1) The Commission’s Electronic
Comment Filing System (ECFS); or (2)
by filing paper copies. All filings should
reference the docket numbers of this
proceeding, CG Docket No’s. 10–213
and 10–145, and WT Docket No. 96–
198.
∑ Electronic Filers: Comments may be
filed electronically using the Internet by
accessing the ECFS: https://
fjallfoss.fcc.gov/ecfs2/. Filers should
follow the instructions provided on the
Web site for submitting comments. In
completing the transmittal screen, ECFS
filers should include their full name,
U.S. Postal Service mailing address, and
CG Docket No.
• Paper Filers: Parties who choose to
file by paper must file an original and
one copy of each filing. Filings can be
SUPPLEMENTARY INFORMATION:
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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.
• All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th Street 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 or boxes
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. The complete text is also
available on the Commission’s Web site
at https://wireless.fcc.gov/edocs_public/
attachment/FCC-11-151A1doc. This full
text may also be downloaded at: https://
wireless.fcc.gov/releases.html. In
addition, parties must serve one copy of
each pleading with the Commission’s
duplicating contractor, Best Copy and
Printing, Inc., 445 12th Street SW.,
Room CY–B402, Washington, DC 20554,
or via email to fcc@bcpiweb.com.
To request materials in accessible
formats for people with disabilities
(Braille, large print, electronic files,
audio format), send an email to
fcc504@fcc.gov or call the Consumer
and Governmental Affairs Bureau at
(202) 418–0530 (voice), or (202) 418–
0432 (TTY).
Document FCC 11–151 contains
proposed information collection
requirements subject to the PRA. It will
be submitted to the Office of
Management and Budget (OMB) for
review under section 3507 of the PRA.
OMB, the general public, and other
Federal agencies are invited to comment
on the proposed information collection
requirements contained in this
document. PRA comments should be
submitted to Cathy Williams, Federal
Communications Commission via email
at PRA@fcc.gov and
Cathy.Williams@fcc.gov, and to
Nicholas A. Fraser, Office of
Management and Budget, via fax at
(202) 395–5167, or via email to
Nicholas_A._Fraser@omb.eop.gov.
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
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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.
Initial Paperwork Reduction Act of
1995 Analysis
The Commission, as part of its
continuing effort to reduce paperwork
burdens, invites the general public and
OMB to comment on the proposed
information collection requirements
contained in this document, as required
by the PRA. Public and agency
comments are due February 28, 2012.
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 44 U.S.C.
3506(c)(4), the Commission seeks
specific comment on how it may
‘‘further reduce the information
collection burden for small business
concerns with fewer than 25
employees.’’
OMB Control Number: 3060–XXXX.
Title: Accessible Telecommunications
and Advanced Communications
Services and Equipment FNPRM.
Form No.: N/A.
Type of Review: New collection.
Respondents: Individuals or
households; Businesses or other forprofit entities; Not-for-profit
Institutions.
Number of Respondents and
Responses: 10,642 respondents and
37,917 responses.
Estimated Time per Response: .50 to
40 hours.
Frequency of Response: Annual, one
time, and on occasion reporting
requirements; Recordkeeping
requirement; Third-party disclosure
requirement.
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Obligation to Respond: Mandatory.
Statutory authority for this information
collection is contained in sections 1–4,
255, 303(r), 403, 503, 716, 717, and 718
of the Act, 47 U.S.C. 151–154, 255,
303(r), 403, 503, 617, 618, and 619.
Total Annual Burden: 272,168 hours.
Total Annual Costs: $236,814.
Nature and Extent of Confidentiality:
Confidentiality is an issue to the extent
that individuals and households
provide personally identifiable
information, which is covered under the
FCC’s system of records notice (SORN),
FCC/CGB–1, ‘‘Informal Complaints and
Inquiries.’’ As required by the Privacy
Act, 5 U.S.C. 552a, the Commission also
published a SORN, FCC/CGB–1
‘‘Informal Complaints and Inquiries,’’ in
the Federal Register on December 15,
2009 (74 FR 66356) which became
effective on January 25, 2010.
In addition, upon the service of an
informal or formal complaint, a service
provider or equipment manufacturer
must produce to the Commission, upon
request, records covered by 47 CFR
14.31 of the Commission’s rules and
may assert a statutory request for
confidentiality for these records. All
other information submitted to the
Commission pursuant to subpart D of
part 14 of the Commission’s rules or to
any other request by the Commission
may be submitted pursuant to a request
for confidentiality in accordance with
47 CFR 0.459 of the Commission’s rules.
Privacy Impact Assessment: Yes. The
Privacy Impact Assessment (PIA) was
completed on June 28, 2007. It may be
reviewed at: https://www.fcc.gov/omd/
privacyact/Privacy_Impact_
Assessment.html. The Commission is in
the process of updating the PIA to
incorporate various revisions made to
the SORN.
Note: The Commission will prepare a
revision to the SORN and PIA to cover the
PII collected related to this information
collection, as required by OMB’s
Memorandum M–03–22 (September 26,
2003) and by the Privacy Act, 5 U.S.C. 552a.
Needs and Uses: In document FCC
11–151, the Commission released an
FNPRM seeking comment on the
implementation of sections 716, 717,
and 718 of the Communications Act
(Act), as amended, which were added to
the Act by the ‘‘Twenty-First Century
Communications and Video
Accessibility Act of 2010’’ (CVAA). See
Public Law 111–260, § 104. Section 716
of the Act requires providers of
advanced communications services and
manufacturers of equipment used for
advanced communications services to
make their services and equipment
accessible to individuals with
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disabilities, unless doing so is not
achievable. See 47 U.S.C. 617. Section
717 of the Act establishes new
recordkeeping requirements and
enforcement procedures for service
providers and equipment manufacturers
that are subject to sections 255, 716, and
718 of the Act. See 47 U.S.C. 617.
Section 255 requires
telecommunications and interconnected
voice over Internet protocol (VoIP)
services and equipment to be accessible,
if readily achievable. Section 718 of the
Act requires web browsers included on
mobile phones to be accessible to and
usable by individuals who are blind or
have a visual impairment, unless doing
so is not achievable. See 47 U.S.C. 619.
Specifically, the Commission seeks
comment on the adoption of a
permanent exemption for small entities,
the meaning of ‘‘interoperable’’ video
conferencing services, the accessibility
of information content, the adoption of
performance objectives and safe harbors,
and related issues. In addition, the
Commission proposes rules to
implement section 718 of the Act.
For purposes of the FNPRM
information collection analysis, the
Commission assumes that the FNPRM
proceeding will result in the adoption of
a permanent small entity exemption for
accessibility obligations under section
716 of the Act that is identical to the
temporary small entity exemption
adopted in the Accessibility Report and
Order, 47 CFR 14.4 of the Commission’s
rules, that will expire on October 8,
2013. The adoption of such a small
entity exemption rule may impact the
following possible related information
collection requirements:
(a) Petitions for waivers from the
accessibility obligations of section 716
of the Act and, in effect, waivers from
the recordkeeping requirements and
enforcement procedures of section 717
of the Act that may be filed by advanced
communications service providers and
equipment manufacturers. Waiver
requests may be submitted for
individual or class offerings of services
or equipment which are designed for
multiple purposes, but are designed
primarily for purposes other than using
advanced communications services. All
such waiver petitions will be put on
public notice for comments and
oppositions.
(b) The requirement for service
providers and equipment manufacturers
that are subject to sections 255, 716, or
718 of the Act to maintain records of the
following: (1) Their efforts to consult
with people with disabilities; (2)
descriptions of the accessibility features
of their products and services; and (3)
information about the compatibility of
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their products with peripheral devices
or specialized customer premises
equipment commonly used by
individuals with disabilities to achieve
access.
(c) The requirement for an officer of
service providers and equipment
manufacturers that are subject to
sections 255, 716, or 718 of the Act to
certify annually to the Commission that
records are kept in accordance with the
recordkeeping requirements. The
certification must also identify the name
and contact details of the person or
persons within the company that are
authorized to resolve accessibility
complaints, and the agent designated for
service of process. The certification
must be updated when necessary to
keep the contact information current.
(d) The filing of formal and informal
complaints alleging violations of
sections 255, 716, or 718 of the Act. As
a prerequisite to filing an informal
complaint, complainants must first
request dispute assistance from the
Consumer and Governmental Affairs
Bureau’s Disability Rights Office.
Summary
I. Introduction and Overview
1. In this FNPRM, we seek comment
on whether to adopt a permanent
exemption for small entities and, if so,
whether it should be based on the
temporary exemption or some other
criteria. We seek comment on the
impact of a permanent exemption on
providers of ACS and manufacturers of
ACS equipment, including the
compliance costs for small entities
absent a permanent exemption. We also
seek comment on the impact of a
permanent exemption on consumers,
including on the availability of
accessible ACS and ACS equipment and
on the accessibility of new ACS
innovations or ACS equipment
innovations. We propose to continually
monitor the impact of any small entity
exemption, including whether it
promotes innovation or whether it has
unanticipated negative consequences on
the accessibility of ACS.
2. We propose to clarify that Internet
browsers are software generally subject
to the requirements of section 716, with
the exception of the discrete category of
Internet browsers built into mobile
phones used by individuals who are
blind or have a visual impairment,
which Congress singled out for
particular treatment in section 718. We
seek to further develop the record on the
technical challenges associated with
ensuring that Internet browsers built
into mobile phones and those browsers
incorporated into computers, laptops,
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tablets, and devices other than mobile
phones are accessible to and usable by
persons with disabilities.
3. With regard to section 718, which
is not effective until 2013, we seek
comment on the best way(s) to
implement section 718 so as to afford
affected manufacturers and service
providers the opportunity to provide
input at the outset, as well as to make
the necessary arrangements to achieve
compliance at such time as the
provisions of section 718 become
effective.
4. To ensure that we capture all the
equipment Congress intended to fall
within the scope of section 716, we seek
comment on alternative proposed
definitions of ‘‘interoperable’’ as used in
the term ‘‘interoperable video
conferencing.’’ Additionally, we ask
whether we should require that video
mail service be accessible to individuals
with disabilities when provided along
with a video conferencing service. We
seek to further develop the record
regarding specific activities that impair
or impede the accessibility of
information content. We also seek
comment on whether performance
objectives should include certain
testable criteria. In addition, we seek
comment on whether certain safe harbor
technical standards will allow the
various components in the ACS
architecture to work together more
efficiently, thereby facilitating
accessibility. We also seek comment on
the definition of ‘‘electronically
mediated services,’’ the extent to which
electronically mediated services are
covered under section 716, and how
they can be used to transform ACS into
an accessible form.
A. Small Entity Exemption
5. As we explained in the
Accessibility Report and Order, section
716(h)(2) of the Act authorizes the
Commission to exempt small entities
from the requirements of section 716,
and as an effect, the concomitant
obligations of section 717. The
exemption relieves from section 716
small entities that may lack the legal,
technical, or financial ability to
incorporate accessibility features,
conduct an achievability analysis, or
comply with the section 717
recordkeeping and certification
requirements. In the Accessibility
Report and Order, we found the record
insufficient to adopt a permanent
exemption or to adopt the criteria to be
used to determine which small entities
to exempt. Instead, we exercised our
authority to temporarily exempt all
manufacturers of ACS equipment and
providers of ACS that are small business
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concerns under applicable SBA rules
and size standards. The temporary
exemption will expire on the earlier of:
(1) the effective date of small entity
exemption rules adopted pursuant to
the FNPRM; or (2) October 8, 2013.
6. We first seek comment on whether
to permanently exempt from the
obligations of section 716,
manufacturers of ACS equipment and
providers of ACS that qualify as small
business concerns under the SBA’s rules
and size standards and, if so whether to
utilize the size standards for the primary
industry in which they are engaged
under the SBA’s rules. The SBA criteria
were established for the purpose of
determining eligibility for SBA small
business loans. Are these same criteria
appropriate for the purpose of relieving
covered entities from the obligations
associated with achievability analyses,
recordkeeping, and certifications? If
these size criteria are not appropriate for
a permanent exemption, what are the
appropriate size criteria? Are there other
criteria that should form the basis of a
permanent exemption?
7. As explained in the Accessibility
Report and Order, small business
concerns under the SBA’s rules must
meet the SBA size standard for six-digit
NAICS codes for the industry in which
the concern is primarily engaged. To
determine an entity’s primary industry,
the SBA ‘‘considers the distribution of
receipts, employees and costs of doing
business among the different industries
in which business operations occurred
for the most recently completed fiscal
year. SBA may also consider other
factors, such as the distribution of
patents, contract awards, and assets.’’
We seek comment on the applicability
of this rule for the permanent small
entity exemption.
8. We seek comment on the
applicability of the SBA definition of
‘‘business concern.’’ Under SBA’s rules,
a business concern is an ‘‘entity
organized for profit, with a place of
business located in the United States,
and which operates primarily within the
United States or which makes a
significant contribution to the U.S.
economy through payment of taxes or
use of American products, materials or
labor.’’ We also seek comment on the
applicability of other SBA rules for
determining whether a business
qualifies as a small business concern,
including rules for determining annual
receipts or employees and affiliation
between businesses.
9. We also seek comment on
alternative size standards that the
Commission has adopted in other
contexts. In establishing eligibility for
spectrum bidding credits, the
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Commission has adopted alternative
size standards for ‘‘very small’’ and
‘‘small’’ businesses. The Commission
has defined ‘‘very small’’ businesses for
these purposes as entities that, along
with affiliates, have average gross
revenues over the three preceding years
of either $3 million or less, or $15
million or less, depending on the
service. The Commission has defined
‘‘small’’ businesses in this context as
entities that, along with affiliates, have
average gross revenues over the three
preceding years of either $15 million or
less, or $40 million or less, depending
on the service. The Commission has also
adopted detailed rules for determining
affiliation between an entity claiming to
be a small business and other entities.
Finally, in at least one instance, the
Commission defined a small business in
the spectrum auction context as an
entity that, along with its affiliates, has
$6 million or less in net worth and no
more than $2 million in annual profits
(after federal income tax and excluding
carry over losses) each year for the
previous two years. We seek comment
on whether these alternatives—in
whole, in part, or in combination—
should form the basis for a permanent
small entity exemption from the
requirements of section 716.
10. The Commission has also used
different size standards to define small
cable companies and small cable
systems, and the Act includes a
definition of small cable system
operators. The Commission has defined
small cable companies as a cable
company serving 400,000 or fewer
subscribers nationwide, and small cable
systems as a cable system serving 15,000
or fewer subscribers. The Act defines
small cable system operators as ‘‘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.’’ We seek comment on
whether these alternatives—in whole, in
part, or in combination—should form
the basis for a permanent small entity
exemption from the requirements of
section 716.
11. In addition, we seek comment on
any other criteria that might form all or
part of a permanent small entity
exemption. For example, the SBA
primarily uses two measures to
determine business size—the maximum
number of employees or maximum
annual receipts of a business concern—
but it has also applied other measures
that represent the magnitude of
operations of a business within an
industry, including ‘‘total assets’’ held
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82243
by an entity and the ‘‘net worth’’ and
‘‘net income’’ for an entity. Does an
exemption based on some criterion
other than employee count or revenues
better meet Congressional intent?
Commenters are encouraged to explain
fully any alternative—including the
alternative of adopting no exemption for
small entities—and to specifically
support any alternative criteria
proffered, including by demonstrating
the anticipated impact on consumers
and small entities.
12. We also seek comment on whether
to limit the exemption to only the
equipment or service that is designed
while an entity meets the requirements
of any small business exemption we
may adopt. If an entity offers for sale a
new version, update or other iteration of
the equipment or service, we seek
comment on whether the update
automatically should be covered by the
exemption or whether the exemption
should turn on whether the entity was
still capable of meeting the exemption
during the design phase of the new
version, iteration, or update.
13. We seek comment on whether to
make a permanent small entity
exemption self-executing. If selfexecuting, entities would be able to
raise the exemption during an
enforcement proceeding but would
otherwise not be required to formally
seek the exemption before the
Commission. In this scenario, the entity
seeking the exemption would be
required to determine on its own
whether it qualifies as a small business
concern.
14. We seek comment on the impact
of a permanent exemption on providers
of ACS, manufacturers of ACS
equipment, and consumers. What
percentage of, or which noninterconnected VoIP providers, wireline
or wireless service providers, electronic
messaging providers, and ACS
equipment manufacturers would qualify
as small business concerns under each
size standard? Conversely, what
percentage of or which providers of ACS
or manufacturers of equipment used for
ACS are not small business concerns
under each size standard? For each ACS
and ACS equipment market segment,
what percentage of the market is served
by entities that are not exempt using
each size standard?
15. We seek comment on the
compliance costs that ACS providers
and ACS equipment manufacturers
would incur absent a permanent
exemption. What would the costs be for
compliance with section 716 and
section 717 across different providers of
ACS and ACS equipment manufacturers
if we decline to adopt any permanent
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exemption or decline to make the
temporary exemption permanent? In
particular, what are the costs of
conducting an achievability analysis,
recordkeeping, and providing
certifications?
16. We seek comment generally on the
impact of a small business exemption
on consumers. Are there ACS or ACS
equipment that may significantly benefit
people with disabilities that are
provided or manufactured by entities
that might be exempt? If so, what are the
services or equipment or the types of
services or equipment, and how would
the exemption impact people with
disabilities? Would a permanent
exemption disproportionately impact
people with disabilities in rural areas
versus urban or suburban areas? How
would a permanent exemption impact
people with disabilities living on tribal
lands? To what extent would a
permanent exemption impact the ability
of people with disabilities to access new
ACS innovations or ACS equipment
innovations? Will a permanent
exemption have a greater impact on the
accessibility of some segments of ACS
or ACS equipment than others?
17. We intend to monitor the impact
of any exemption, including whether it
is promoting innovation as Congress
intended or whether it is having
unanticipated negative consequences on
accessibility of ACS. While we propose
not to time limit any exemption, we
retain the ability to modify or repeal the
exemption if doing so would serve the
public interest and is consistent with
Congressional intent. We seek comment
on these proposals.
B. Section 718 Implementation
18. Under section 718, a mobile
phone manufacturer that includes a
browser, or a mobile phone service
provider that arranges for a browser to
be included on a mobile phone, must
ensure that the browser functions are
accessible to and usable by individuals
who are blind or have a visual
impairment, unless doing so is not
achievable. Congress provided that the
effective date for these requirements is
three years after the enactment of the
CVAA, i.e., October 8, 2013.
19. In enacting section 718, we
believe that Congress carved out an
exception to section 716 and delayed
the effective date to address a special
class of browsers for a specific subset of
the disabilities community because of
the unique challenges of achieving nonvisually accessible solutions in a mobile
phone and the relative youth of
accessible development for mobile
platforms. This technical complexity
arises because three accessibility
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technologies, often developed by
different parties, must be synchronized
effectively together for a browser to be
accessible to a blind user of a mobile
phone: (1) An accessibility API of the
operating system; (2) the
implementation of that API by the
browser; and (3) its implementation by
a screen reader. Because non-visual
accessibility is generally the most
technically challenging form of
accessibility to accomplish, an
accessibility API is needed to render the
underlying meaning of key elements of
a graphical user interface in an
alternate, non-visual form, such as
synthetic speech or refreshable Braille.
For example, while Microsoft has
developed Microsoft Active
Accessibility (MSAA), the dominant
accessibility API on Windows desktop
computers, it has not yet defined and
deployed an accessibility API for the
current Windows phone platform that
can be utilized by browser and screen
reader developers for that platform.
Even after an API becomes available, a
significant process of coordination,
testing, and refinement is needed to
ensure that the browser/server and
screen reader/client components can
interact in a comprehensive and robust
manner.
20. Additional lead-time must also be
built-in as this kind of technical
development and coordination is
needed on each mobile platform.
Present technological trends have
resulted in relatively short generations
of mobile platforms, each benefiting
from increasing miniaturization of
hardware components and increased
bandwidth for transmitting data to and
from the cloud. Experimentation and
innovation with new ways of
maximizing the productivity of mobile
platforms, given these technological
trends, has made accessibility
coordination difficult. Finally,
additional challenges are presented by
the technical limitations posed by
mobile platforms (lower memory
capacity, low-bandwidth constraints,
smaller screens) coupled with the fact
that web content often has to be
specially formatted to run on mobile
platforms.
21. In the context of discussing the
development of accessible mobile phone
options for persons who are blind, deafblind, or have low vision, the industry
has acknowledged the technological
shortcomings in the ability of both
hardware and software to incorporate
accessibility features in mobile phones.
Specifically, TIA has indicated that
‘‘[not] all mobile devices can support
the additional fundamental components
needed to provide a full screen reader
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feature; there may be limitations in the
software platform or limitations in the
accompanying hardware, e.g.,
processing power, memory limitations.’’
TIA also indicated that more advanced
accessibility features are not easily
integrated and require the development
of specific software codes for each
feature on each device. Sprint, however,
asserts that over time, mobile phones
will eventually evolve like personal
computers have, from ‘‘out-of-the-box’’
systems to today’s dynamic, highly
customizable systems, as mobile device
performance metrics such as processing
speed, power, and memory capacity
improve. In short, as mobile device
technologies continue to evolve over
time, corresponding improvements in
hardware and software will improve
accessibility in the future.
22. We seek comment on our
proposed clarification that Congress
added section 718 as an exception to the
general coverage of Internet browsers as
software subject to the requirements of
section 716 for Internet browsers built
in or installed on mobile phones used
by individuals who are blind or have a
visual impairment because of the
unique challenges associated with
achieving mobile access for this
particular community. We also seek
comment on the best way(s) to
implement section 718, so as to afford
affected manufacturers and service
providers the 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.
23. We seek further 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. Would an accessibility API
simplify the process for developing
accessible screen readers for mobile
phones and if so, should there be a
separate API for each operating system
that supports a browser? Is there a
standard-setting body to develop such
APIs or would such a process have to
be driven by the manufacturers of
mobile operating system software? What
are the technical challenges, for both
software developers and manufacturers,
involved in developing an accessibility
API?
24. What are the specific technical
challenges involved in developing
screen reader software applications for
each mobile platform (e.g., iPhone,
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Android, Windows Mobile)? What
security questions are raised by the use
of screen readers? Are there specific
security risks posed to operating
systems by the presence of screen
readers? What types of technical
support/customer service will mobile
phone operators need to provide to
ensure initial and continued
accessibility in browsers that are built
into mobile phones? Are there steps the
Commission could take to facilitate
effective, efficient, and achievable
accessibility solutions?
25. We seek to better understand these
technical complexities and how we can
encourage effective collaboration among
the service providers, and the
manufacturers of end user devices, the
operating system, the browser, screen
readers and other stakeholders. We
particularly welcome input on how the
Commission can facilitate the
development of solutions to the
technical challenges associated with
ensuring access to Internet browsers in
mobile phones.
26. With respect to equipment and
services covered by section 716, the
Accessibility Report and Order
gradually phases in obligations of
covered entities with full compliance
required on October 8, 2013 in order to
encourage covered entities to implement
accessibility features early in product
development cycles, to take into
account the complexity of these
regulations, and to temper our
regulations’ effect on previously
unregulated entities. We found this
approach to be consistent with
Commission precedent where we have
utilized phase-in periods in similarly
complex rulemakings. As we have
stated above, we believe that Congress
drafted section 718 as a separate
provision from section 716 to emphasize
the importance of ensuring access to
mobile browsers for people who are
blind or visually impaired because of
the unique technical challenges
associated with ensuring effective
interaction between browsers and
screen readers operating over a mobile
platform. Given these complex technical
issues, we seek comment on what steps
we should take to ensure that the mobile
phone industry will be prepared to
implement accessibility features when
section 718 becomes effective on
October 8, 2013.
C. Interoperable Video Conferencing
Services
1. Meaning of Interoperable
27. In the Accessibility NPRM, the
Commission asked how to define
‘‘interoperable’’ in a manner that is
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faithful to both the statutory language
and the broader purposes of the CVAA,
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. Many
commenters appear to consider ‘‘interplatform, inter-network, and interprovider’’ as requisite characteristics of
interoperability. ITI suggests that
‘‘interoperability between platforms is
not currently achievable,’’ but that
Congress recognized that some forms of
accessibility will take time and that
‘‘[t]his is an example of such a
situation.’’ We are concerned that this
proposed definition would exclude
virtually all existing video conferencing
services and equipment from the
accessibility requirements of section
716, which we believe would be
contrary to Congressional intent.
28. We believe that interoperability is
a characteristic of usability for many
individuals who are deaf or hard of
hearing and for whom video
conferencing services are, by
themselves, accessibility solutions. We
also agree with Consumer Groups that
‘‘[w]ithout interoperability,
communication networks [are]
segmented and require consumers to
obtain access to multiple, closed
networks using particularized
equipment.’’ For example, video relay
service (‘‘VRS’’) equipment users must
obtain and use other video conferencing
services and equipment to engage in
real-time video communication with
non-VRS-equipment users. In addition
to possibly defining ‘‘interoperable’’ as
‘‘inter-platform, inter-network, and
inter-provider,’’ ITI also suggests that
the term ‘‘interoperable’’ could be
defined as ‘‘interoperable with [VRS] or
among different video conferencing
services.’’ As an alternative, the IT and
Telecom RERCs suggest that a system
that publishes its standard and allows
other manufacturers or service providers
to build products or services to work
with it should be considered
interoperable.
29. Accordingly, we seek comment on
the following alternative definitions of
‘‘interoperable’’ in the context of video
conferencing services and equipment
used for those services: (1)
‘‘Interoperable’’ means able to function
inter-platform, inter-network, and interprovider; (2) ‘‘interoperable’’ means
having published or otherwise agreedupon standards that allow for
manufacturers or service providers to
develop products or services that
operate with other equipment or
services operating pursuant to the
standards; or (3) ‘‘interoperable’’ means
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able to connect users among different
video conferencing services, including
VRS.
30. We seek comment on each of the
above proposed definitions of
‘‘interoperable.’’ Should only one of the
proposed definitions be adopted, and
should we reject the other two
definitions, or should we adopt multiple
definitions and find that video
conferencing services are interoperable
as long as any one of the three
definitions is satisfied? In other words,
should we consider the three proposed
definitions as three alternative tests for
interoperability? In regard to the first
alternative—‘‘inter-platform, internetwork, and inter-provider’’—we seek
comment on the extent to which video
conferencing services or equipment
must be different or distinct to qualify
under this definition. In regard to the
second alternative, when does a
standard determine interoperability? Is
publication by a standards-setting body
enough, even if only one manufacturer
or service provider follows that
standard? If a manufacturer or service
provider publishes a standard and
invites others to utilize it, is that enough
to establish interoperability? If not, is
interoperability established as soon as a
second manufacturer or service provider
utilizes the standard? If not, what is
enough to establish interoperability? If
two or more manufacturers or service
providers agree to a standard without
publication, is interoperability
established? If not, is interoperability
established if they invite others to
receive a private copy of the standards,
but do not publish the standards for
public consumption? If video
conferencing services can be used to
communicate with public safety
answering points, does that establish
interoperability? If not, what else must
be done to establish interoperability?
Does the ability to connect to VRS make
a video conferencing service
‘‘interoperable’’ or ‘‘accessible’’ or both?
If users of different video conferencing
services, including VRS, can
communicate with each other, does that
establish interoperability, even if there
are no set standards? If communications
among different services is not enough,
what then is enough to establish
interoperability?
31. Interest in and consumer demand
for cross-platform, network, and
provider video conferencing services
and equipment continues to rise. We do
not believe that interoperability among
different platforms will ‘‘hamper service
providers’ attempts to distinguish
themselves in the marketplace and thus
hinder innovation.’’ While we consider
this matter more fully in this FNPRM,
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we urge industry ‘‘to develop standards
for interoperability between video
conferencing services as it has done for
text messaging, picture and video
exchange among carriers operating on
different technologies and equipment.’’
We also urge industry, consumers, and
other stakeholders to identify
performance objectives that may be
necessary 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. In other words, what does
‘‘accessible to and usable by individuals
with disabilities’’ mean in the context of
interoperable video conferencing
services and equipment? Are
accessibility performance and other
objectives different for ‘‘interoperable’’
video conferencing services? For
example, does accessibility for
individuals who are deaf or hard of
hearing include being enabled to
connect with an interoperable video
conferencing service call through a relay
service other than VRS? How can we
ensure that video conferencing services
and equipment are accessible to people
with other disabilities, such as people
who are blind or have low vision, or
people with mobility, dexterity,
cognitive, or intellectual disabilities?
Notwithstanding existing obligations
under the Act, we propose that industry
considers accessibility alongside the
technical requirements and standards
that may be needed to achieve
interoperability so that as interoperable
video conferencing services and
equipment come into existence, they are
also accessible. Interoperable video
conferencing services and equipment,
when offered by providers and
manufacturers, must be accessible to
and usable by individuals with
disabilities, as required by section 716,
and such providers and manufacturers
are subject to the recordkeeping and
annual certification requirements of
section 717 starting on the effective date
of these rules.
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2. Coverage of Video Mail
32. In the Accessibility NPRM, the
Commission sought comment on
whether services that otherwise meet
the definition of interoperable video
conferencing services but that also
provide non-real-time or near real-time
functions (such as ‘‘video mail’’) are
covered and subject to the requirements
of section 716. If such functions are not
covered, the Commission asked whether
it should, similar to what it did in the
section 255 context, assert its ancillary
jurisdiction to cover video mail.
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33. We agree with commenters that
non-real-time or near-real-time features
or functions of a video conferencing
service, such as video mail, do not meet
the definition of ‘‘real-time’’ video
communications. Nonetheless, we do
not have a sufficient record as to
whether we should exercise our
ancillary jurisdiction to require that a
video mail service be accessible to
individuals with disabilities when
provided along with a video
conferencing service as the Commission
did in the context of section 255 in
regard to voice mail, and we now seek
comment on this issue. The record is
also insufficient to decide whether our
ancillary jurisdiction extends to require
other features or functions provided
along with a video conferencing service,
such as recording and playing back
video communications on demand, to
be accessible, and we seek comment on
this issue as well. Do we have other
sources of direct authority, besides
section 716, to require that video mail
and other features, such as recording
and playing back video
communications, are accessible to
individuals with disabilities? Would the
failure to ensure accessibility of video
mail and the related equipment that
performs these functions undermine the
accessibility and usability of
interoperable video conferencing
services? Similarly, would the failure to
ensure accessibility of recording and
playing back video communications on
demand and the related equipment that
performs these functions undermine the
accessibility and usability of
interoperable video conferencing
services?
D. Accessibility of Information Content
34. Section 716(e)(1)(B) of the Act
requires the Commission to promulgate
regulations providing that 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. In the
Accessibility Report and Order, we
adopt this broad rule, incorporating the
text of section 716(e)(1)(B), as proposed
in the Accessibility NPRM. Here, we
seek comment on the IT and Telecom
RERCs’ suggestion that we interpret the
phrase ‘‘may not impair or impede the
accessibility of information content’’ to
include the concepts set forth below. IT
and Telecom RERC has submitted a
proposal regarding how we should
interpret and apply our accessibility of
information content guidelines,
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including the following
recommendations that covered entities:
Æ Shall not install equipment or
features that can’t or don’t support
accessibility information;
Æ Shall not configure network
equipment such that it would block or
discard accessibility information;
Æ Shall display any accessibility
related information that is present in an
industry recognized standard format;
Æ Shall not block users from
substituting accessible versions of
content; and
Æ Shall not prevent the incorporation
or passing along of accessibility related
information.
E. Electronically Mediated Services
35. In the Accessibility Report and
Order, we declined to expand our
definition of peripheral devices to mean
‘‘devices employed in connection with
equipment covered by this part,
including software and electronically
mediated services, to translate, enhance,
or otherwise transform advanced
communications services into a form
accessible to people with disabilities’’ as
the IT and Telecom RERCs propose).
Because the record is insufficient, we
seek further comment on the IT and
Telecom RERCs’ proposal and on the
definition of ‘‘electronically mediated
services.’’ We also seek comment on the
extent to which electronically mediated
services are covered under section 716
and how they can be used to transform
ACS into an accessible form.
F. Performance Objectives
36. 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 Accessibility
NPRM, the Commission sought
comment on how to make its
performance standards testable,
concrete, and enforceable. In the
Accessibility Report and Order, we
incorporated into the performance
objectives the definitions of accessible,
compatibility, and usable, in §§ 6.3 and
7.3 of the Commission’s rules. In their
Reply Comments, however, the IT and
Telecom RERCs argued that, instead of
relying on our part 6 requirements, the
Commission’s performance objectives
should include testable criteria. The IT
and Telecom RERCs proposed specific
‘‘Aspirational Goal and Testable
Functional Performance Criteria’’ in
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their Reply Comments. We seek
comment on those criteria.
G. Safe Harbors
37. As explained in the Accessibility
Report and Order, we decline at this
time to adopt technical standards as safe
harbors. However, we recognize the
importance of the various components
in the ACS architecture working
together to achieve accessibility and
seek comment on whether certain safe
harbor technical standards can further
this goal.
38. Specifically, we seek comment on
whether, as ITI proposes, ACS
manufacturers can ensure compliance
with the Act ‘‘by programmatically
exposing the ACS user interface using
one or more established APIs and
specifications which support the
applicable provisions in ISO/IEC
13066–1:2011.’’ Other standards may
also form the basis of a safe harbor for
compliance with section 716, including
the ‘‘W3C/WAI Web Content
Accessibility Guidelines, Version 2.0
and section 508 of the Rehabilitation
Act of 1973, as amended.’’ We seek
comment on the use of these standards,
and any others, as safe harbors for
compliance with section 716.
39. For the purpose of keeping safe
harbors up-to-date with technology and
ensuring ongoing compliance with the
Act, we seek comment on whether ‘‘it
should be the responsibility of the
appropriate manufacturer or standards
body to inform the Commission when
new, relevant APIs and specifications
are made available to the market that
meet the * * * standard.’’ If we decide
to adopt a safe harbor based on
recognized industry standards, we seek
comment on how the industry,
consumers, and the Commission can
verify compliance with the standard.
Should entities be required to selfcertify compliance with a safe harbor? Is
there a standard for which consumers
can easily test compliance with an
accessible tool? What are the
compliance costs for ACS manufacturers
and service providers of the
Commission adopting safe harbor
technical standards based on recognized
industry standards? Will adopting safe
harbor technical standards based on
recognized industry standards reduce
compliance costs for ACS manufacturers
and service providers?
40. We recognize tension may exist
between the relatively slow standards
setting process and the rapid pace of
technological innovation. How should
the Commission account for the
possibility that the continued
development of a standard on which a
safe harbor is based may be outpaced by
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technology? Should we for purposes of
determining compliance with a safe
harbor apply only safe harbors that were
recognized industry standards at the
time of the design phase for the
equipment or service in question? Is
there another time period in the
development of the equipment or
service that is more appropriate?
H. Section 718 Recordkeeping and
Enforcement
41. Background. In the Accessibility
NPRM, the Commission invited
comment on recordkeeping
requirements for section 718 covered
entities. The Commission noted that
recordkeeping requirements for section
718 entities would be considered further
in light of comments on general section
718 implementation. The Commission
also sought comment on informal
complaint, formal complaint, and other
general requirements for complaints
alleging violations of section 718 and
the Commission’s implementing rules.
42. Discussion. In the Accessibility
Report and Order, we adopt the same
recordkeeping and complaint
procedures for section 718 covered
entities that we adopt for section 716
covered entities. Specifically, we adopt
recordkeeping requirements for section
718 covered entities that go into effect
one year after the effective date of the
rules adopted in the Accessibility Report
and Order. We also adopt informal
complaint and formal complaint
procedures as well as other general
requirements for complaints filed
against section 718 covered entities for
violations of section 718 and the
Commission’s implementing rules.
These complaint procedures go into
effect for section 718 covered entities on
October 8, 2013, three years after the
CVAA was enacted.
43. In this FNPRM, we seek comment
on the implementation of section 718
specifically. In this section, we invite
comment on whether the section 718
recordkeeping requirements, which we
adopt in the Accessibility Report and
Order, should be retained or altered in
light of the record developed in
response to this FNPRM on section 718.
We ask that parties suggesting changes
to the rules provide an assessment of the
relative costs and benefits associated
with (1) the rule they wish to see
changed and (2) the alternative that they
propose.
II. Procedural Matters
Ex Parte Rules—Permit-But-Disclose
Proceeding
44. Pursuant to 47 CFR 1.1200 et seq.,
this matter shall be treated as a ‘‘permit-
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but-disclose’’ proceeding in accordance
with the Commission’s ex parte rules.
Persons making ex parte presentations
must file a copy of any written
presentation or a memorandum
summarizing any oral presentation
within two business days after the
presentation (unless a different deadline
applicable to the Sunshine period
applies). Persons making oral ex parte
presentations are reminded that
memoranda summarizing the
presentation must: (1) List all persons
attending or otherwise participating in
the meeting at which the ex parte
presentation was made; and (2)
summarize all data presented and
arguments made during the
presentation. If the presentation
consisted in whole or in part of the
presentation of data or arguments
already reflected in the presenter’s
written comments, memoranda or other
filings in the proceeding, the presenter
may provide citations to such data or
arguments in his or her prior comments,
memoranda, or other filings (specifying
the relevant page and/or paragraph
numbers where such data or arguments
can be found) in lieu of summarizing
them in the memorandum. Documents
shown or given to Commission staff
during ex parte meetings are deemed to
be written ex parte presentations and
must be filed consistent with § 1.1206(b)
of the Commission’s rules. In
proceedings governed by § 1.49(f) of the
Commission’s rules or for which the
Commission has made available a
method of electronic filing, written ex
parte presentations and memoranda
summarizing oral ex parte
presentations, and all attachments
thereto, must be filed through the
electronic comment filing system
available for that proceeding, and must
be filed in their native format (e.g., .doc,
.xml, .ppt, searchable .pdf). Participants
in this proceeding should familiarize
themselves with the Commission’s ex
parte rules.
Initial Regulatory Flexibility Analysis
45. 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 Further Notice of
Proposed Rulemaking (‘‘FNPRM’’).
Written public comments are requested
on this IRFA. Comments must be
identified as responses to the IRFA and
must be filed by the applicable
deadlines for initial comments, or reply
comments, as specified in the FNPRM.
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The Commission will send a copy of the
FNPRM, including this IRFA, to the
Chief Counsel for Advocacy of the Small
Business Administration (‘‘SBA’’). In
addition, the FNPRM and this IRFA (or
summaries thereof) will be published in
the Federal Register.
A. Need for, and Objectives of, the
Proposed Rules
46. The Accessibility Report and
Order implements Congress’ mandate
that people with disabilities have access
to advanced communications services
(‘‘ACS’’) and ACS equipment.
Specifically, the rules adopted in the
Accessibility Report and Order
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’’).
47. The Accessibility Report and
Order implements the requirements of
section 716 of the Act, which requires
providers of ACS and manufacturers of
equipment used for ACS to make their
products accessible to people with
disabilities, unless accessibility is not
achievable. The Commission also adopts
rules to implement section 717 of the
Act, which requires the Commission to
establish new recordkeeping and
enforcement procedures for
manufacturers and providers subject to
sections 255, 716, and 718.
48. The Accessibility Report and
Order finds the record insufficient to
adopt a permanent exemption or to
adopt the criteria to be used to
determine which small entities to
exempt. The Accessibility Report and
Order therefore temporarily exempts all
manufacturers of ACS equipment and
all providers of ACS from the
obligations of section 716 if they qualify
as small business concerns under the
SBA rules and size standards for the
industry in which they are primarily
engaged. The Accessibility Report and
Order indicated that such an exemption
was necessary to avoid the possibility of
unreasonably burdening ‘‘small and
entrepreneurial innovators and the
significant value that they add to the
economy.’’ This self-executing
exemption would be applied until the
development of a record to determine
whether small entities should be
permanently exempted and, if so, what
criteria should be used to define small
entities.
49. The Accessibility Report and
Order indicated that SBA has
established maximum size standards
used to determine whether a business
concern qualifies as a small business
concern in its primary industry. The
SBA has generally adopted size
NAICS classification
standards based on the maximum
number of employees or maximum
annual receipts of a business concern.
The SBA categorizes industries for its
size standards using the North
American Industry Classification
System (‘‘NAICS’’), a ‘‘system for
classifying establishments by type of
economic activity.’’ The Accessibility
Report and Order identified some
NAICS codes for possible primary
industry classifications of ACS
equipment manufacturers and ACS
providers and the relevant SBA size
standards associated with the codes.
The definitions for each NAICS industry
classification can be found by entering
the six digit NAICS code in the ‘‘2007
NAICS Search’’ function available at the
NAICS homepage, https://www.census.
gov/eos/www/naics/. The
U.S. Office of Management and Budget
has revised NAICS for 2012, however,
the codes and industry categories listed
herein are unchanged. OMB anticipates
releasing a 2012 NAICS United States
Manual or supplement in January 2012.
See 13 CFR 121.201 for a full listing of
SBA size standards by six-digit NAICS
industry code. The standards listed in
this column establish the maximum size
an entity in the given NAICS industry
may be to qualify as a small business
concern.
NAICS code
SBA size standard
Services
Wired Telecommunications Carriers ..............................................................
Wireless Telecommunications Carriers (except satellites) .............................
Telecommunications Resellers .......................................................................
All Other Telecommunications ........................................................................
Software Publishers ........................................................................................
Internet Publishing and Broadcasting and Web Search Portals ....................
Data Processing, Hosting, and Related Services ..........................................
517110
517210
517911
517919
511210
519130
518210
1,500 or fewer employees.
1,500 or fewer employees.
1,500 or fewer employees.
$25 million or less in annual receipts.
$25 million or less in annual receipts.
500 or fewer employees.
$25 million or less in annual receipts.
334220
750 or fewer employees.
334111
334210
334290
511210
519130
1,000 or fewer employees.
1,000 or fewer employees.
750 or fewer employees.
$25 million or less in annual receipts.
500 or fewer employees.
Equipment
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Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.
Electronic Computer Manufacturing ...............................................................
Telephone Apparatus Manufacturing .............................................................
Other Communications Equipment Manufacturing .........................................
Software Publishers ........................................................................................
Internet Publishing and Broadcasting and Web Search Portals ....................
50. The Accessibility Report and
Order indicated that this temporary
exemption is self-executing. Under this
approach, covered entities must
determine whether they qualify for the
exemption based upon their ability to
meet the SBA’s rules and the size
standard for the relevant NAICS
industry category for the industry in
which they are primarily engaged.
Entities that manufacture ACS
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equipment or provide ACS may raise
this temporary exemption as a defense
in an enforcement proceeding. Entities
claiming the exemption must be able to
demonstrate that they met the
exemption criteria during the estimated
start of the design phase of the lifecycle
of the product or service that is the
subject of the complaint. The
Accessibility Report and Order stated
that if an entity no longer meets the
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exemption criteria, it must comply with
section 716 and section 717 for all
subsequent products or services or
substantial upgrades of products or
services that are in the development
phase of the product or service lifecycle,
or any earlier stages of development, at
the time they no longer meet the
criteria. The temporary exemption will
begin on the effective date of the rules
adopted in the Accessibility Report and
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Federal Register / Vol. 76, No. 251 / Friday, December 30, 2011 / Proposed Rules
Order and will expire the earlier of the
effective date of small entity exemption
rules adopted pursuant to the FNPRM or
October 8, 2013. The Accessibility
Report and Order states that the
temporary exemption enables us to
provide relief to those entities that may
possibly lack legal, financial, or
technical capability to comply with the
Act until we further develop the record
to determine whether small entities
should be subject to a permanent
exemption and, if so, the criteria to be
used for defining which small entities
should be subject to such permanent
exemption.
51. In the FNPRM we seek comment
on whether to make permanent the
temporary exemption for manufacturers
of ACS equipment and providers of
ACS, adopt one or part of alternative
size standards the Commission adopted
in other contexts, or to adopt any
permanent exemption for such entities,
subject to repeal or modification by the
Commission as necessary to meet
Congress’s intent. The FNPRM also
seeks comment on the impact of an
exemption on providers of ACS,
manufacturers of ACS equipment, and
consumers.
52. Specifically, the FNPRM seeks
comment on whether to permanently
exempt from the obligations of section
716, manufacturers of ACS equipment
and providers of ACS that qualify as
small business concerns under the
SBA’s rules and size standards and, if
so, whether to utilize the size standards
for the primary industry in which they
are engaged under the SBA’s rules as set
forth in the Accessibility Report and
Order as explained above. The FNPRM
notes that SBA criteria were established
for the purpose of determining
eligibility for SBA small business loans
and asks whether these same criteria are
appropriate for the purpose of relieving
covered entities from the obligations
associated with achievability analyses,
recordkeeping, and certifications.
53. The FNPRM also seeks comment
on alternative size standards that the
Commission has adopted in other
contexts. The Commission has adopted
alternative size standards for very small
and small businesses for eligibility for
spectrum bidding credits. These
alternative sizes include average gross
revenue over the preceding three years
of $3 million, $15 million, or $40
million, depending on the wireless
service. The Commission has also used
a different size standard in the spectrum
context, specifically for entities that,
along with affiliates, have $6 million or
less in net worth and no more than $2
million in annual profits (after federal
income tax and excluding carry over
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losses) each year for the previous two
years. The Commission has also used
different size standards to define small
cable companies and small cable
systems, and the Act includes a
definition of small cable system
operators. The Commission has defined
small cable companies as a cable
company serving 400,000 or fewer
subscribers nationwide, and small cable
systems as a cable system serving 15,000
or fewer subscribers. The Act defines
small cable system operators as ‘‘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 FNPRM seeks
comment on whether any of these
alternatives—in whole, in part, or in
combination—should form the basis for
a permanent small entity exemption
from the requirements of section 716.
54. The FNPRM also asks if these size
criteria are not appropriate for a
permanent exemption, what the
appropriate size criteria would be, and
whether there are other criteria that
should form the basis of a permanent
exemption?
55. The FNPRM seeks comment on
the impact of a permanent exemption on
providers of ACS, manufacturers of ACS
equipment, and consumers.
Specifically, the FNPRM seeks comment
on the qualitative and quantitative
impact of a permanent exemption based
on the temporary exemption, on any of
the alternatives discussed, or on some
other possible size standard will impact
industry sectors engaged in ACS. For
example, what percentage of, or which
non-interconnected VoIP providers,
wireline or wireless service providers,
electronic messaging providers, and
ACS equipment manufacturers would
qualify as small business concerns
under each size standard? Conversely,
what percentage of or which providers
of ACS or manufacturers of equipment
used for ACS are not small business
concerns under each size standard? For
each ACS and ACS equipment market
segment, what percentage of the market
is served by entities that are not exempt
using each size standard?
56. The FNPRM also seeks comment
on the compliance costs that ACS
providers and ACS equipment
manufacturers would incur absent a
permanent exemption. What would the
costs be for compliance with section 716
and section 717 across different
providers of ACS and ACS equipment
manufacturers if we decline to adopt
any permanent exemption or decline to
make the temporary exemption
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82249
permanent? In particular, what are the
costs of conducting an achievability
analysis, recordkeeping, and providing
certifications?
57. We note that, in addition to the
small entity exemption provision, the
CVAA sets forth achievability factors
that may also mitigate adverse impacts
and reduce burdens on small entities.
Under the achievability factors, an
otherwise covered entity can
demonstrate that accessibility is
unachievable and therefore avoid
compliance. The first and second factors
are particularly relevant to small entities
and the special circumstances they face.
The first factor considers the nature and
cost of the steps needed to meet the
requirements with respect to the
specific equipment or service in
question, and the second considers 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.
58. The FNPRM seeks further
comment on several issues raised in the
implementation of sections 716 and 717
of the Act, as well as to seek initial
comment on implementing section 718
of the Act. Specifically, the FNPRM
seeks comment on three proposed
alternative definitions for the term
‘‘interoperable’’ in the context of video
conferencing services and equipment
used for those services: (1)
‘‘Interoperable’’ means able to function
inter-platform, inter-network, and interprovider; (2) ‘‘interoperable’’ means
having published or otherwise agreedupon standards that allow for
manufacturers or service providers to
develop products or services that
operate with other equipment or
services operating pursuant to the
standards; or (3) ‘‘interoperable’’ means
able to connect users among different
video conferencing services, including
VRS. The FNPRM also seeks comment
on whether we should exercise our
ancillary jurisdiction to require that a
video mail service be accessible to
individuals with disabilities when
provided along with a video
conferencing service as we did in the
context of section 255 in regard to voice
mail. The FNPRM seeks comment on
several proposals to (1) extend our
accessibility of information content
guidelines to cover additional concepts;
(2) expand our definition of peripheral
devices to include electronically
mediated services; (3) expand our Part
6 requirements to include testable
criteria. We also seek to develop a
record on a proposal to define technical
standards for safe harbors using the
W3C/WAI Web guidelines or ISO/IEC
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Federal Register / Vol. 76, No. 251 / Friday, December 30, 2011 / Proposed Rules
13066–1:2011. Finally, we seek
comment on our proposal to implement
section 718 of the CVAA consistent with
the recordkeeping requirements adopted
in the Accessibility Report and Order.
59. We seek comment on the
preceding topics because even though at
present we do not have enough
information to propose a specific rule,
we believe that during the effective
period of the temporary small business
exemption, information about these
topics will in all likelihood become
crucial and indeed determinative of
how the implementation of the
exemption will be carried out in
concrete terms. For example, within the
exemption period, technological
innovations and advances may make
interoperability more available in
providing improved access to the deaf/
blind community in service areas where
interoperability is not yet feasible for
technological reasons. Also,
technological advances in coverage of
video mail or in the availability of safe
harbors may become more available and
more efficiently operational after the
exemption period than they are at
present, and thus, during the temporary
exemption, these various areas of
increased availability and increased
effective impact may affect the
provision of ACS to the deaf and/or
blind community. Hence, because these
topics may become pivotal and crucial
after the exemption period, we choose
to seek comment on these topics at this
time because based on our assessment of
the admittedly scant record to date, we
conclude that such comment may
effectively guide the Commission
toward a more comprehensive and
efficient implementation of the
temporary exemption. We also seek
comment on implementing section 718,
which requires a mobile phone
manufacturer that includes a browser, or
a mobile phone service provider that
arranges for a browser to be included on
a mobile phone, to ensure that the
browser functions are accessible to and
usable by individuals who are blind or
have a visual impairment, unless doing
so is not achievable. Under section 718,
mobile phone manufacturers or service
providers may achieve compliance by
relying on third party applications,
peripheral devices, software, hardware,
or customer premises equipment.
Congress provided that the effective
date for these requirements is three
years after the enactment of the CVAA,
i.e., October 8, 2013.
B. Legal Basis
60. The legal basis for any action that
may be taken pursuant to the FNPRM is
contained in sections 1–4, 255, 303(r),
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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
Rules Will Apply
61. 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 ‘‘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.
62. To assist the Commission in
analyzing the total number of small
entities potentially affected by the
proposals in the FNPRM, we ask
commenters to estimate the number of
small entities that may be affected. To
assist in assessing the nature and
number of small entities that face
possible significant economic impact by
the proposals in the FNPRM, 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
and in effect section 717, 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 and in
effect section 717 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 FNPRM and this IRFA seek
comment on whether and how the
Commission should permanently
exempt small entities from the
requirements of section 716 and in
effect section 717 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.
63. Many of the issues raised in the
FNPRM relate to clarifying obligations
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on entities already covered by the
Accessibility Report and Order, which
may affect a broad range of service
providers and equipment
manufacturers. The FNPRM seeks
comment on making permanent a
temporary exemption for small entities
that qualify as small business concerns
under the SBA’s rules and small
business size standards, or some other
criteria. Therefore, it is possible that all
entities that would be required to
comply with section 716 and section
717, but are small business concerns or
qualify as small entities under some
other criteria, will be exempt from the
provisions of the proposed rules
implementing section 716 and section
717. The CVAA, however, does not
provide the flexibility for the
Commission to adopt an exemption for
small entities from compliance with
section 718. Therefore, we estimate
below the impact on small entities
absent a permanent exemption from
section 716 and section 717, and small
entities that may have to comply with
section 718. Specifically, we analyze the
number of small businesses engaged in
manufacturing that may be affected by
the FNPRM, absent a permanent small
entity exemption, including
manufacturers of equipment used to
provide interconnected and noninterconnected VoIP, electronic
messaging, and interoperable video
conferencing services. We then analyze
the number of small businesses engaged
as service providers that may be affected
by the Accessibility Report and Order,
absent a permanent small entity
exemption, including providers of
interconnected and non-interconnected
VoIP, electronic messaging services,
interoperable video conferencing
services, wireless services, wireline
services, and other relevant services.
64. Small Businesses, Small
Organizations, and Small Governmental
Jurisdictions. Our action may, over time,
affect small entities that are not easily
categorized at present. We therefore
describe here, at the outset, three
comprehensive, statutory small entity
size standards. First, nationwide, there
are a total of approximately 27.5 million
small businesses, according to the SBA.
In addition, a ‘‘small organization’’ is
generally ‘‘any not-for-profit enterprise
which is independently owned and
operated and is not dominant in its
field.’’ Nationwide, as of 2007, there
were approximately 1,621,315 small
organizations. Finally, the term ‘‘small
governmental jurisdiction’’ is defined
generally as ‘‘governments of cities,
towns, townships, villages, school
districts, or special districts, with a
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population of less than fifty thousand.’’
Census Bureau data for 2011 indicate
that there were 89,476 local
governmental jurisdictions in the
United States. We estimate that, of this
total, as many as 88,506 entities may
qualify as ‘‘small governmental
jurisdictions.’’ Thus, we estimate that
most governmental jurisdictions are
small.
1. Equipment Manufacturers
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a. Manufacturers of Equipment To
Provide VoIP
65. Entities manufacturing equipment
used to provide interconnected VoIP,
non-interconnected VoIP, or both are
generally found in one of two Census
Bureau categories, ‘‘Electronic
Computer Manufacturing’’ or
‘‘Telephone Apparatus Manufacturing.’’
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 non-interconnected
VoIP because it is not possible to
separate available data on these two
manufacturing categories for VoIP
equipment. Our estimates below likely
greatly overstate the number of small
entities that manufacture equipment
used to provide ACS, including
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 possible.
66. 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.’’
67. In this category, the SBA deems
and electronic computer manufacturing
business to be small if it has 1,000
employees or less. For this category of
manufacturers, Census data for 2007
show that there were 421 establishments
that operated that year. Of those 421,
384 had 100 or fewer employees and 37
had 100 or more employees. On this
basis, we estimate that the majority of
manufacturers of equipment used to
provide electronic messaging services in
this category are small.
68. Telephone Apparatus
Manufacturing. The Census Bureau
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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.’’
69. In this category, the SBA deems a
telephone apparatus manufacturing
business to be small if it has 1,000 or
fewer employees. For this category of
manufacturers, Census data for 2007
shows there were 398 such
establishments in operation. Of those
398 establishments, 393 (approximately
99%) had 1,000 or fewer employees
and, thus, would be deemed small
under the applicable SBA size standard.
On this basis, the Commission estimates
that approximately 99% or more of the
manufacturers of equipment used to
provide VoIP in this category are small.
b. Manufacturers of Equipment To
Provide Electronic Messaging
70. 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.’’
71. 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
2007, there were a total of 919
establishments in this category that
operated for part or all of the entire year.
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82251
Of this total, 771 had less than 100
employees and 148 had more than 100
employees. Thus, under this size
standard, the majority of firms can be
considered small.
72. 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.’’
73. In this category the SBA deems an
electronic computer manufacturing
business to be small if it has 1,000 or
fewer employees. For this category of
manufacturers, Census data for 2007
show that there were 421 such
establishments that operated that year.
Of those 421 establishments, 384 had
1,000 or fewer employees. On this basis,
we estimate that the majority of the
manufacturers of equipment used to
provide electronic messaging services in
this category are small.
74. 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 stand alone 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.’’
75. In this category the SBA deems a
telephone apparatus manufacturing
business to be small if it has 1,000 or
fewer employees. For this category of
manufacturers, Census data for 2007
shows that there were 398 such
establishments that operated that year.
Of those 398 establishments, 393
(approximately 99%) had 1,000 or fewer
employees and, thus, would be deemed
small under the applicable SBA size
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.
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c. Manufacturers of Equipment Used To
Provide Interoperable Video
Conferencing Services
76. 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).’’
77. Other Communications
Equipment Manufacturing. In this
category, the SBA deems a business
manufacturing other communications
equipment to be small if it has 750 or
fewer employees. For this category of
manufacturers, Census data for 2007
show that there were 452 establishments
that operated that year. Of the 452
establishments 406 had fewer than 100
employees and 46 had more than 100
employees. Accordingly, the
Commission estimates that a substantial
majority of the manufacturers of
equipment used to provide
interoperable and other videoconferencing services are small.
2. Service Providers
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a. Providers of VoIP
78. 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.’’
79. 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
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.’’
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80. In this category, the SBA deems a
wired telecommunications carrier to be
small if it has 1,500 or fewer employees.
Census data for 2007 shows 3,188 firms
in this category. Of these 3,188 firms,
only 44 had 1,000 or more employees.
While we could not find precise Census
data on the number of firms with in the
group with 1,500 or fewer employees, it
is clear that at least 3,144 firms with
fewer than 1,000 employees would be in
that group. On this basis, the
Commission estimates that a substantial
majority of the providers of
interconnected VoIP, noninterconnected VoIP, or both in this
category, are small.
81. All Other Telecommunications.
Under the 2007 U.S. Census definition
of firms included in the category ‘‘All
Other Telecommunications (NAICS
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 VoIP
services via client-supplied
telecommunications connections are
also included in this industry.’’
82. In this category, the SBA deems 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 shows 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. 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.
b. Providers of Electronic Messaging
Services
83. 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
Publishing and Broadcasting and Web
Search Portals.’’
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84. 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 shows
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, 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.
85. Wired Telecommunications
Carriers. For the 2007 US Census
definition of firms included in the
category, ‘‘Wired Telecommunications
Carriers (NAICS Code 517110),’’ see
paragraph 35 above.
86. In this category, the SBA deems a
wired telecommunications carrier to be
small if it has 1,500 or fewer employees.
Census data for 2007 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 1,500 or fewer
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 1,500 or fewer
employees. On this basis, the
Commission estimates that
approximately 99% or more of the
providers of electronic messaging
services in this category are small.
87. 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
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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 email, connections to other web
sites, auctions, news, and other limited
content, and serve as a home base for
Internet users.’’
88. In this category, the SBA deems an
Internet publisher or Internet
broadcaster or the provider of a web
search portal on the Internet to be small
if it has 500 or fewer employees. For
this category of manufacturers, Census
data for 2007 shows that there were
2,705 such firms that operated that year.
Of those 2,705 firms, 2,682
(approximately 99%) had 500 or fewer
employees and, thus, would be deemed
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.
89. Data Processing, Hosting, and
Related Services. The Census Bureau
defines this category to include
‘‘establishments primarily engaged in
providing infrastructure for hosting or
data processing services. These
establishments may provide 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.’’
90. In this category, the SBA deems a
data processing, hosting, or related
services provider to be small if it has
$25 million or less in annual receipts.
For this category of providers, Census
data for 2007 shows that there were
14,193 such establishments that
operated that year. Of those 14,193
firms, 12,985 had less than $10 million
in annual receipts, and 1,208 had
greater than $10 million. Although no
data is available to confirm the number
of establishments with greater than $25
million in receipts, the available data
confirms the majority of establishments
in this category were small. On this
basis, the Commission estimates that
approximately 96% of the providers of
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electronic messaging services in this
category are small.
c. Providers of Interoperable Video
Conferencing Services
91. Entities that provide interoperable
video conferencing services are found in
the Census Bureau Category ‘‘All Other
Telecommunications.’’
92. 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.
93. In this category, the SBA deems a
provider of ‘‘all other
telecommunications’’ services to be
small if it has $25 million or less in
average annual receipts. Census data for
2007 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. On this basis,
Commission estimates that
approximately 98% or more of the
providers of interoperable video
conferencing services are small.
3. Additional Industry Categories
a. Certain Wireless Carriers and Service
Providers
94. 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.’’
95. Census data for 2007 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 the group with 1,500 or fewer
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
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1,383 firms (approximately 99%) 1,500
or fewer employees. On this basis,
Commission estimates that
approximately 99% or more of the
providers of electronic messaging
services in this category are small.
96. Specialized Mobile Radio. The
Commission awards ‘‘small entity’’
bidding credits in auctions for 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.
97. 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,
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.
98. 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
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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.
99. AWS Services (1710–1755 MHz
and 2110–2155 MHz bands (AWS–1);
1915–1920 MHz, 1995–2000 MHz, 2020–
2025 MHz and 2175–2180 MHz bands
(AWS–2); 2155–2175 MHz band (AWS–
3)). For the AWS–1 bands, the
Commission has defined a ‘‘small
business’’ as an entity with average
annual gross revenues for the preceding
three years not exceeding $40 million,
and a ‘‘very small business’’ as an entity
with average annual gross revenues for
the preceding three years not exceeding
$15 million. In 2006, the Commission
conducted its first auction of AWS–1
licenses. In that initial AWS–1 auction,
31 winning bidders identified
themselves as very small businesses.
Twenty-six of the winning bidders
identified themselves as small
businesses. In a subsequent 2008
auction, the Commission offered 35
AWS–1 licenses. Four winning bidders
identified themselves as very small
businesses, and three of the winning
bidders identified themselves as a small
business. For AWS–2 and AWS–3,
although we do not know for certain
which entities are likely to apply for
these frequencies, we note that the
AWS–1 bands are comparable to those
used for cellular service and personal
communications service. The
Commission has not yet adopted size
standards for the AWS–2 or AWS–3
bands but has proposed to treat both
AWS–2 and AWS–3 similarly to
broadband PCS service and AWS–1
service due to the comparable capital
requirements and other factors, such as
issues involved in relocating
incumbents and developing markets,
technologies, and services.
100. 700 MHz Guard Band Licenses.
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
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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. In 2000, the
Commission conducted an auction of 52
Major Economic Area (‘‘MEA’’) licenses.
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 and closed in
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.
101. Upper 700 MHz Band Licenses.
In the 700 MHz Second Report and
Order, the Commission revised its rules
regarding Upper 700 MHz licenses. On
January 24, 2008, the Commission
commenced Auction 73 in which
several licenses in the Upper 700 MHz
band were available for licensing: 12
Regional Economic Area Grouping
licenses in the C Block, and one
nationwide license in the D Block. The
auction concluded on March 18, 2008,
with 3 winning bidders claiming very
small business status (those with
attributable average annual gross
revenues that do not exceed $15 million
for the preceding three years) and
winning five licenses.
102. Lower 700 MHz Band Licenses.
The Commission previously adopted
criteria for defining three groups of
small businesses for purposes of
determining their eligibility for special
provisions such as bidding credits. The
Commission defined a ‘‘small business’’
as an entity that, together with its
affiliates and controlling principals, has
average gross revenues not exceeding
$40 million for the preceding three
years. A ‘‘very small business’’ is
defined as 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. Additionally, the lower 700
MHz Service had a third category of
small business status for Metropolitan/
Rural Service Area (MSA/RSA)
licenses—‘‘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 approved these
small size standards. An auction of 740
licenses (one license in each of the 734
MSAs/RSAs and one license in each of
the six Economic Area Groupings
(EAGs)) was conducted in 2002. Of the
740 licenses available for auction, 484
licenses were won by 102 winning
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bidders. Seventy-two of the winning
bidders claimed small business, very
small business or entrepreneur status
and won licenses. A second auction
commenced on May 28, 2003, closed on
June 13, 2003, and included 256
licenses. Seventeen winning bidders
claimed small or very small business
status, and nine winning bidders
claimed entrepreneur status. In 2005,
the Commission completed an auction
of 5 licenses in the Lower 700 MHz
band. All three winning bidders claimed
small business status.
103. In 2007, the Commission
reexamined its rules governing the 700
MHz band in the 700 MHz Second
Report and Order. An auction of A, B
and E block 700 MHz licenses was held
in 2008. Twenty winning bidders
claimed small business status (those
with attributable average annual gross
revenues that exceed $15 million and do
not exceed $40 million for the preceding
three years). Thirty three winning
bidders claimed very small business
status (those with attributable average
annual gross revenues that do not
exceed $15 million for the preceding
three years).
104. 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 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.
105. 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
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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.
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
106. 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
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Manufacturing, which is: All such firms
having 750 or fewer employees.
According to Census Bureau data for
2007, there were a total of 939
establishments in this category that
operated for part or all of the entire year.
Of this total, 784 had less than 500
employees and 155 had more than 100
employees. Thus, under this size
standard, the majority of firms can be
considered small.
107. 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
2007, there were a total of 939
establishments in this category that
operated for part or all of the entire year.
Of this total, 784 had less than 500
employees and 155 had more than 100
employees.’’ Thus, under this size
standard, the majority of firms can be
considered small.
108. 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 24,912 firms in this
category that operated for the entire
year. Of this total, 22,701 firms had
annual sales of under $5 million; 570
had annual sales and 533 firms had
sales of $5 million or more but less than
$10 million, and 1,641 had annual sales
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of over 10 million. Thus, the majority of
firms in this category can be considered
small.
c. Wireline Carriers and Service
Providers
109. 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 shows 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
these incumbent local exchange service
providers can be considered small.
110. 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
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 1,000
employees or more. Thus under this
category and the associated small
business size standard, the majority of
these Competitive LECs, CAPs, SharedTenant 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
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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.
111. 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 shows 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 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.
112. 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 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 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
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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.
113. 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
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.
114. 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 1,000
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.
115. 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
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fewer employees. Census Bureau data
for 2007 shows 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 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.
116. 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.
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 Notice.
117. 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
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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;
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
118. 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.
119. 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 shows
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
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that they were engaged in the provision
of wireless telephony, including cellular
service, PCS, and 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.
120. 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. 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.
121. 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
shows 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.
122. Wireless Telephony. Wireless
telephony includes cellular, personal
communications services, and
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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 shows 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, PCS, and 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.
123. Broadband Personal
Communications Service. The
broadband 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
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
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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.
124. 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.
125. Narrowband Personal
Communications Services. To date, two
auctions of narrowband 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,
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. A third auction of
Narrowband PCS licenses was
conducted in 2001. In that auction, five
bidders won 317 Metropolitan Trading
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Areas and nationwide licenses. Three of
the winning bidders claimed status as a
small or very small entity and won 311
licenses.
126. 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
contained in 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.
127. 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
defining ‘‘small’’ and ‘‘very small’’
businesses for purposes of determining
their eligibility for special provisions
such as bidding credits and installment
payments. This small business 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 defined as 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 size
standards. Auctions of Phase II licenses
commenced on and closed in 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. Of the
908 licenses auctioned, 693 were sold.
Thirty-nine small businesses won 373
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licenses in the first 220 MHz auction. A
second auction included 225 licenses:
216 EA licenses and 9 EAG licenses.
Fourteen companies claiming small
business status won 158 licenses. A
third auction included four licenses: 2
BEA licenses and 2 EAG licenses in the
220 MHz Service. No small or very
small business won any of these
licenses. In 2007, the Commission
conducted a fourth auction of the 220
MHz licenses. Bidding credits were
offered to small businesses. A bidder
with attributed average annual gross
revenues that exceeded $3 million and
did not exceed $15 million for the
preceding three years (‘‘small business’’)
received a 25 percent discount on its
winning bid. A bidder with attributed
average annual gross revenues that did
not exceed $3 million for the preceding
three years received a 35 percent
discount on its winning bid (‘‘very small
business’’). Auction 72, which offered
94 Phase II 220 MHz Service licenses,
concluded in 2007. In this auction, five
winning bidders won a total of 76
licenses. Two winning bidders
identified themselves as very small
businesses won 56 of the 76 licenses.
One of the winning bidders that
identified themselves as a small
business won 5 of the 76 licenses won.
128. 800 MHz and 900 MHz
Specialized Mobile Radio Licenses. The
Commission awards small business
bidding credits in auctions for 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.
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129. 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.
130. 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
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.
131. 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
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
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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.
132. 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
shows 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.
133. 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 shows 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.
134. 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 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
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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
shows 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.
135. 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 shows 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.
136. 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
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.
137. Wireless Cable Systems.
Broadband Radio Service and
Educational Broadband Service.
Broadband Radio Service systems,
previously referred to as Multipoint
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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
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.
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138. 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 shows 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’’.
139. 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
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
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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.
140. 218–219 MHz Service. The first
auction of 218–219 MHz spectrum
resulted in 174 entities winning licenses
for 594 Metropolitan Statistical Area
(‘‘MSA’’) licenses. Of the 594 licenses,
567 were won by 167 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.
141. 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 shows 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 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
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the future. TRW is not a small entity.
Thus, only one incumbent licensee in
the 24 GHz band is a small business
entity.
142. 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.
143. 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.
144. 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.
145. 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 VoIP
services via client-supplied
telecommunications connections are
also included in this industry.’’ For this
category, Census Bureau data for 2007
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shows 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
146. 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.
147. 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 shows 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.
148. Cable Companies and Systems.
The Commission has also developed its
own small business size standards, for
the purpose of cable rate regulation.
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 6,635 systems nationwide, 5,802
systems have under 10,000 subscribers,
and an additional 302 systems have
10,000–19,999 subscribers. Thus, under
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this second size standard, most cable
systems are small.
149. 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.
150. Open Video Services. Open
Video Service (OVS) systems provide
subscription services. The 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 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
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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
151. 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.
152. Internet Service Providers. The
2007 Economic Census places these
firms, whose services might include
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
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.
153. 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.
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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.
154. 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 email, connections to other web
sites, auctions, news, and other limited
content, and serve as a home base for
Internet users. The SBA deems
businesses in this industry with 500 or
fewer employees small. 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 to 999
employees. Consequently, we estimate
the majority of these firms are small
entities that may be affected by our
proposed actions.
155. 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
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
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$49,999,999 million. Consequently, we
estimate that the majority of these firms
are small entities that may be affected
by our proposed actions.
156. 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 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. 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
157. We summarize below the
recordkeeping and certification
obligations of the Accessibility Report
and Order. Additional information on
each of these requirements can be found
in the Accessibility Report and Order.
These requirements will apply to all
entities that must comply with section
716 and section 718.
158. Recordkeeping. The Accessibility
Report and Order requires, beginning
one year after the effective date of the
Accessibility Report and Order, that
each manufacturer of equipment used to
provide ACS and each provider of such
services subject to sections 255, 716,
and 718 not otherwise exempt under the
Accessibility Report and Order,
maintain certain records. These records
document the efforts taken by a
manufacturer or service provider to
implement sections 255, 716, and 718.
The Accessibility Report and Order
adopts the recordkeeping requirements
of the CVAA, which specifically
include: (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
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access. Additionally, while
manufacturers and providers are not
required to keep records of their
consideration of the four achievability
factors, they must be prepared to carry
their burden of proof, which requires
greater than conclusory or unsupported
claims. Similarly, entities that rely on
third party solutions to achieve
accessibility must be prepared to
produce relevant documentation.
159. These recordkeeping
requirements are necessary to facilitate
enforcement of the rules adopted in the
Accessibility Report and Order and
proposed in the FNPRM. The
Accessibility Report and Order builds
flexibility into the recordkeeping
obligations by allowing covered entities
to keep records in any format,
recognizing the unique recordkeeping
methods of individual entities. Because
complaints regarding accessibility of a
product or service may not occur for
years after the release of the product or
service, the Accessibility Report and
Order requires covered entities to keep
records for two years from the date the
product ceases to be manufactured or a
service is offered to the public. The
FNPRM seeks comment on whether any
of the recordkeeping and certification
requirements should be modified for
entities covered under section 718.
160. Annual Certification Obligations.
The CVAA and the Accessibility Report
and Order require an officer of
providers of ACS and ACS equipment
submit to the Commission an annual
certificate that records are kept in
accordance with the above
recordkeeping requirements, unless
such manufacturer or provider is
exempt from compliance with section
716 under applicable rules. The
certification must be supported with an
affidavit or declaration under penalty of
perjury, signed and dated by an
authorized officer of the entity with
personal knowledge of the
representations provided in the
company’s certification, verifying the
truth and accuracy of the information.
The certification must be filed with the
Consumer and Governmental Affairs
Bureau on or before April 1 each year
for records pertaining to the previous
calendar year. The FNPRM seeks
comment on whether any of the
recordkeeping and certification
requirements should be modified for
entities covered under section 718.
161. Costs of Compliance. There is an
upward limit on the cost of compliance.
Under the CVAA and the Accessibility
Report and Order accessibility is
required for entities under section 716
and section 718 unless it is not
achievable. Under two of the four
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achievability factors from the Act and
adopted in the Accessibility Report and
Order, which also apply to any rules
adopted pursuant to this FNPRM
implementing section 718, covered
entities may demonstrate that
accessibility is not achievable based on
the nature and cost of steps needed or
the technical and economic impact on
the entity’s operation. Entities that are
not otherwise exempt or excluded under
the Accessibility Report and Order, or
subsequent to this FNPRM, must
nonetheless be able to demonstrate that
they conducted an achievability
analysis, which necessarily requires the
retention of some records.
E. Steps Taken To Minimize Significant
Economic Impact on Small Entities and
Significant Alternatives Considered
162. The RFA requires an agency to
describe any significant alternatives it
considered in developing its approach,
which may include the following four
alternatives, among others: ‘‘(1) the
establishment of differing compliance or
reporting requirements or timetables
that take into account the resources
available to small entities; (2) the
clarification, consolidation, or
simplification of compliance 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.’’
163. We note that the FNPRM
continues and preserves the steps taken
in the Accessibility Report and Order to
minimize adverse economic impact on
small entities. The FNPRM will
continue to promote flexibility for all
entities in several ways. The FNPRM
does not alter the ability of an entity
with obligations under section 716 to
seek a waiver for products or services
that are not designed primarily for ACS,
and does not impact the conclusion in
the Accessibility Report and Order that
customized equipment is excluded.
Further, small entities may continue to
comply with both section 716 and
section 718 by demonstrating that
accessibility is not achievable, or may
rely on third party software,
applications, equipment, hardware, or
customer premises equipment to meet
their obligations under section 716 and
section 718, if achievable. As stated
below, the FNPRM also leaves
unchanged the requirements adopted in
the Accessibility Report and Order that
allow covered entities to keep records in
any format they wish as this flexibility
affords small entities the greatest
flexibility to choose and maintain the
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recordkeeping system that best suits
their resources and their needs.
164. The FNPRM also seeks comment
on making permanent the temporary
exemption from the section 716 and
section 717 obligations for all small
entities that was adopted in the
Accessibility Report and Order.
Specifically, the Accessibility Report
and Order minimized the economic
impact on small entities by temporarily
exempting entities that manufacture
ACS equipment or provide ACS that,
along with any affiliates, meet the
criteria for a small business concern for
their primary industry under SBA’s
rules and size standards.
Correspondingly, the FNPRM now seeks
to develop a record that would allow the
Commission to determine whether to
permanently minimize the impact on
small entities that are subject to the
requirements of sections 716.
165. The FNPRM also seeks comment
on alternative approaches to the
standards used to provide the temporary
small business exemption even as it
seeks to develop a record on whether to
make the existing exemption a
permanent one. In essence, the FNPRM
looks to the temporary exemption as a
proposal for a permanent exemption
and seeks to develop record support for
continuing to minimize the economic
and regulatory impact on small entities.
In considering alternatives to the
approach proposed for a permanent
exemption, the FNPRM seeks comment
on how it can refine the proposed
approach.
166. With respect to recordkeeping
and certification requirements, and as
described above, the FNPRM leaves
unchanged the requirements adopted in
the Accessibility Report and Order that
allow covered entities to keep records in
any format they wish. In the
Accessibility Report and Order, we
found that this approach took into
account the variances in covered
entities (e.g., size, experience with the
Commission), recordkeeping methods,
and products and services covered by
the CVAA. Moreover, we found that it
also provided the greatest flexibility to
small businesses and minimized the
economic impact that the statutorily
mandated requirements impose on
small businesses. Correspondingly, we
considered and rejected the alternative
of imposing a specific format or onesize-fits-all system for recordkeeping
that could potentially impose greater
burdens on small businesses.
Furthermore, the certification
requirement is possibly less
burdensome on small businesses than
large, as it merely requires certification
from an officer that the necessary
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records were kept over the previous
year; this is presumably a less resource
intensive certification for smaller
entities. The FNPRM seeks comment on
whether any of the recordkeeping
requirements should be modified for
entities covered by section 718.
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F. Federal Rules That May Duplicate,
Overlap, or Conflict With Proposed
Rules
167. Section 255(e) of the Act, as
amended, 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 Access 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 Act, 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, our
rules do not overlap, duplicate, or
conflict with either Access Board Final
Rules, or (if later adopted) the Access
Board Draft Guidelines. Where
obligations under section 255 and
section 716 overlap, for instance for
accessibility requirements for
interconnected VoIP, we clarify in the
Accessibility Report and Order which
rules govern the entities’ obligations.
III. Ordering Clauses
168. It is ordered that, pursuant to the
authority of sections 1–4, 255, 303(r),
403, 503, 716, 717, and 718 of the
Communications Act of 1934, as
amended, 47 U.S.C. 151–154, 255,
303(r), 403, 503, 617, 618, and 619, this
Further Notice of Proposed Rulemaking
is hereby adopted.
169. It is further ordered that pursuant
to applicable procedures set forth in
sections 1.415 and 1.419 of the
Commission’s Rules, 47 CFR 1.415,
1.419, interested parties may file
comments on this Further Notice of
Proposed Rulemaking on or before 45
days after publication of the Further
Notice of Proposed Rulemaking in the
Federal Register and reply comments
on or before 75 days after publication in
the Federal Register.
170. It is further ordered that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Further Notice of Proposed
Rulemaking, including the Initial
Regulatory Flexibility Analysis, to the
Chief Counsel for Advocacy of the Small
Business Administration.
VerDate Mar<15>2010
19:18 Dec 29, 2011
Jkt 226001
List of Subjects in 47 CFR Part 14
Advanced communications services
equipment, Individuals with
disabilities, Manufacturers of equipment
used for advanced communications
services, Providers of advanced
communications services,
Recordkeeping and enforcement
requirements.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
For the reasons discussed in the
preamble, the Federal Communications
Commission proposes to amend 47 part
14, as added elsewhere in this issue of
the Federal Register, effective January
30, 2012 as follows:
PART 14—ACCESS TO ADVANCED
COMMUNICATIONS SERVICES AND
EQUIPMENT BY PEOPLE WITH
DISABILITIES
1. The authority citation for part 14
continues to read as follows:
Authority: 47 U.S.C. 151, 154(i), 154(j),
208, 255, 617, 618.
2. Add subpart E to part 14 to read as
follows.
Subpart E—Internet Browsers Built
Into Telephones Used With Public
Mobile Services
§ 14.60 Internet Browsers built into Mobile
Phones.
(a) Accessibility. If a manufacturer of
a telephone used with public mobile
services (as such term is defined in
section 710(b)(4)(B) of the Act) 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, except that this subpart
shall not impose any requirement on
such manufacturer or provider—
(1) To make accessible or usable any
Internet browser other than a browser
that such manufacturer or provider
includes or arranges to include in the
telephone; or
(2) To make Internet content,
applications, or services accessible or
usable (other than enabling individuals
with disabilities to use an included
browser to access such content,
applications, or services).
(b) Industry Flexibility. A
manufacturer or provider may satisfy
the requirements of this subpart with
PO 00000
Frm 00064
Fmt 4702
Sfmt 4702
respect to such telephone or services
by—
(1) Ensuring that the telephone or
services that such manufacture or
provider offers is accessible to and
usable by individuals with disabilities
without the use of third party
applications, peripheral devices,
software, hardware, or customer
premises equipment; or
(2) Using third party applications,
peripheral devices, software, hardware,
or customer premises equipment that is
available to the consumer at nominal
cost and that individuals with
disabilities can access.
[FR Doc. 2011–31160 Filed 12–29–11; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 622
[Docket No. 100812345–1789–01]
RIN 0648–AY73
Fisheries of the Caribbean, Gulf of
Mexico, and South Atlantic;
Comprehensive Annual Catch Limit
Amendment for the South Atlantic
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Amended proposed rule;
request for comments.
AGENCY:
NMFS hereby amends a
proposed rule published on December 1,
2011, to implement the Comprehensive
Annual Catch Limit Amendment
(Comprehensive ACL Amendment) to
the Fishery Management Plans (FMPs)
for the Snapper-Grouper Fishery of the
South Atlantic Region (SnapperGrouper FMP), the Golden Crab Fishery
of the South Atlantic Region, the
Dolphin and Wahoo Fishery off the
Atlantic States, and the Pelagic
Sargassum Habitat of the South Atlantic
Region as prepared and submitted by
the South Atlantic Fishery Management
Council (Council). In November 2011,
the Council’s Scientific and Statistical
Committee (SSC) met and determined
the allowable biological catch (ABC) for
wreckfish should be reduced to prevent
overfishing from occurring. The
proposed rule that was published on
December 1, 2011 contained a variety of
actions unrelated to the wreckfish ABC
and those actions did not need to be
delayed by further Council decisions
with respect to the revised wreckfish
SUMMARY:
E:\FR\FM\30DEP1.SGM
30DEP1
Agencies
[Federal Register Volume 76, Number 251 (Friday, December 30, 2011)]
[Proposed Rules]
[Pages 82240-82264]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-31160]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 14
[CG Docket No. 10-213; WT Docket No. 96-198; CG Docket No. 10-145; FCC
11-151]
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 seeks comment on the
implementation of certain provisions in sections 716, 717, and 718 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.
Specifically, this document seeks comment on whether to adopt a
permanent exemption for small entities that provide advanced
communications services (ACS). The document also seeks comment on
implementing section 718 of the Act which requires Internet browsers
built into mobile phones to be accessible to and usable by persons who
are blind or have a visual impairment, unless doing so is unachievable.
This inquiry includes the recordkeeping and enforcement requirements
related to section 718. People with disabilities have often faced
technical challenges associated with the use of Internet browsers,
video conferencing services, and the accessibility of information
content. The CVAA attempts to bring existing communications laws
protecting people with disabilities in line with 21st Century
technologies while providing flexibility to the industry by allowing
for new and innovative ways to meet the needs of people with
disabilities. These actions will promote rapid deployment of and
universal access to broadband services for all Americans across the
country, which will in turn stimulate economic growth and provide
opportunity.
DATES: Submit comments on or before February 13, 2012, and reply
comments on or before March 14, 2012. Written comments on the proposed
information collection requirements, subject to the Paperwork Reduction
Act (PRA) of 1995, Public Law 104-13, should be submitted on or before
February 28, 2012.
ADDRESSES: Federal Communications Commission, 445 12th Street, SW.,
Washington, DC 20554. You may submit comments, identified by FCC 11-
151, or by CG Docket Nos. 10-213 and 10-145, and WT Docket No. 96-198,
by any of the following methods:
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 email: 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: Rosaline Crawford, Consumer and
Governmental Affairs Bureau, at (202) 418-2075 or
rosaline.crawford@fcc.gov; Brian Regan, Wireless Telecommunications
Bureau, at (202) 418-2849 or brian.regan@fcc.gov; or Janet Sievert,
Enforcement Bureau, at (202) 418-1362 or janet.sievert@fcc.gov. For
additional information concerning the Paperwork Reduction Act
information collection requirements contained in this document, contact
Cathy Williams, Federal Communications Commission, at (202) 418-2918,
or via email Cathy.Williams@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's
Further Notice of Proposed Rulemaking (FNPRM), document FCC 11-151,
adopted October 7, 2011, and released October 7, 2011, in CG Docket
Nos. 10-213 and 10-145, and WT Docket No. 96-198. Simultaneously with
the FNPRM, the Commission issued a Report and Order in CG Docket Nos.
10-213 and 10-145, and WT Docket No. 96-198 (``Accessibility Report and
Order''). The full text of FCC 11-151 and copies of any subsequently
filed documents in this matter will be available for public inspection
and copying during regular business hours at the FCC Reference
Information Center, Portals II, 445 12th Street SW., Room CY-A257,
Washington, DC 20554. FCC 11-151 and copies of subsequently filed
documents in this matter may also be purchased from the Commission's
duplicating contractor at Portals II, 445 12th Street SW., Room CY-
B402, Washington, DC 20554. Customers may contact the Commission's
duplicating contractor at its web site, www.bcpiweb.com, or by calling
1-(800) 378-3160. FCC-11-151 can also be downloaded in Word or Portable
Document Format (PDF) at: https://hraunfoss.fcc.gov/edocs_public/attachment/FCC-11-151A1doc.
Pursuant to 47 CFR 1.415 and 1.419, interested parties may file
comments and reply comments on or before the dates indicated in the
DATES section of this document. Comments may be filed using: (1) The
Commission's Electronic Comment Filing System (ECFS); or (2) by filing
paper copies. All filings should reference the docket numbers of this
proceeding, CG Docket No's. 10-213 and 10-145, and WT Docket No. 96-
198.
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: https://fjallfoss.fcc.gov/ecfs2/. Filers should follow the instructions provided on the Web site
for submitting comments. In completing the transmittal screen, ECFS
filers should include their full name, U.S. Postal Service mailing
address, and CG Docket No.
Paper Filers: Parties who choose to file by paper must
file an original and one copy of each filing. Filings can be
[[Page 82241]]
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.
All hand-delivered or messenger-delivered paper filings
for the Commission's Secretary must be delivered to FCC Headquarters at
445 12th Street 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 or boxes 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. The complete text is also available on the
Commission's Web site at https://wireless.fcc.gov/edocs_public/attachment/FCC-11-151A1doc. This full text may also be downloaded at:
https://wireless.fcc.gov/releases.html. In addition, parties must serve
one copy of each pleading with the Commission's duplicating contractor,
Best Copy and Printing, Inc., 445 12th Street SW., Room CY-B402,
Washington, DC 20554, or via email to fcc@bcpiweb.com.
To request materials in accessible formats for people with
disabilities (Braille, large print, electronic files, audio format),
send an email to fcc504@fcc.gov or call the Consumer and Governmental
Affairs Bureau at (202) 418-0530 (voice), or (202) 418-0432 (TTY).
Document FCC 11-151 contains proposed information collection
requirements subject to the PRA. It will be submitted to the Office of
Management and Budget (OMB) for review under section 3507 of the PRA.
OMB, the general public, and other Federal agencies are invited to
comment on the proposed information collection requirements contained
in this document. PRA comments should be submitted to Cathy Williams,
Federal Communications Commission via email at PRA@fcc.gov and
Cathy.Williams@fcc.gov, and to Nicholas A. Fraser, Office of Management
and Budget, via fax at (202) 395-5167, or via email to Nicholas_A._Fraser@omb.eop.gov.
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.
Initial Paperwork Reduction Act of 1995 Analysis
The Commission, as part of its continuing effort to reduce
paperwork burdens, invites the general public and OMB to comment on the
proposed information collection requirements contained in this
document, as required by the PRA. Public and agency comments are due
February 28, 2012. 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 44 U.S.C. 3506(c)(4), the Commission seeks
specific comment on how it may ``further reduce the information
collection burden for small business concerns with fewer than 25
employees.''
OMB Control Number: 3060-XXXX.
Title: Accessible Telecommunications and Advanced Communications
Services and Equipment FNPRM.
Form No.: N/A.
Type of Review: New collection.
Respondents: Individuals or households; Businesses or other for-
profit entities; Not-for-profit Institutions.
Number of Respondents and Responses: 10,642 respondents and 37,917
responses.
Estimated Time per Response: .50 to 40 hours.
Frequency of Response: Annual, one time, and on occasion reporting
requirements; Recordkeeping requirement; Third-party disclosure
requirement.
Obligation to Respond: Mandatory. Statutory authority for this
information collection is contained in sections 1-4, 255, 303(r), 403,
503, 716, 717, and 718 of the Act, 47 U.S.C. 151-154, 255, 303(r), 403,
503, 617, 618, and 619.
Total Annual Burden: 272,168 hours.
Total Annual Costs: $236,814.
Nature and Extent of Confidentiality: Confidentiality is an issue
to the extent that individuals and households provide personally
identifiable information, which is covered under the FCC's system of
records notice (SORN), FCC/CGB-1, ``Informal Complaints and
Inquiries.'' As required by the Privacy Act, 5 U.S.C. 552a, the
Commission also published a SORN, FCC/CGB-1 ``Informal Complaints and
Inquiries,'' in the Federal Register on December 15, 2009 (74 FR 66356)
which became effective on January 25, 2010.
In addition, upon the service of an informal or formal complaint, a
service provider or equipment manufacturer must produce to the
Commission, upon request, records covered by 47 CFR 14.31 of the
Commission's rules and may assert a statutory request for
confidentiality for these records. All other information submitted to
the Commission pursuant to subpart D of part 14 of the Commission's
rules or to any other request by the Commission may be submitted
pursuant to a request for confidentiality in accordance with 47 CFR
0.459 of the Commission's rules.
Privacy Impact Assessment: Yes. The Privacy Impact Assessment (PIA)
was completed on June 28, 2007. It may be reviewed at: https://www.fcc.gov/omd/privacyact/Privacy_Impact_Assessment.html. The
Commission is in the process of updating the PIA to incorporate various
revisions made to the SORN.
Note: The Commission will prepare a revision to the SORN and PIA
to cover the PII collected related to this information collection,
as required by OMB's Memorandum M-03-22 (September 26, 2003) and by
the Privacy Act, 5 U.S.C. 552a.
Needs and Uses: In document FCC 11-151, the Commission released an
FNPRM seeking comment on the implementation of sections 716, 717, and
718 of the Communications Act (Act), as amended, which were added to
the Act by the ``Twenty-First Century Communications and Video
Accessibility Act of 2010'' (CVAA). See Public Law 111-260, Sec. 104.
Section 716 of the Act requires providers of advanced communications
services and manufacturers of equipment used for advanced
communications services to make their services and equipment accessible
to individuals with
[[Page 82242]]
disabilities, unless doing so is not achievable. See 47 U.S.C. 617.
Section 717 of the Act establishes new recordkeeping requirements and
enforcement procedures for service providers and equipment
manufacturers that are subject to sections 255, 716, and 718 of the
Act. See 47 U.S.C. 617. Section 255 requires telecommunications and
interconnected voice over Internet protocol (VoIP) services and
equipment to be accessible, if readily achievable. Section 718 of the
Act requires web browsers included on mobile phones to be accessible to
and usable by individuals who are blind or have a visual impairment,
unless doing so is not achievable. See 47 U.S.C. 619.
Specifically, the Commission seeks comment on the adoption of a
permanent exemption for small entities, the meaning of
``interoperable'' video conferencing services, the accessibility of
information content, the adoption of performance objectives and safe
harbors, and related issues. In addition, the Commission proposes rules
to implement section 718 of the Act.
For purposes of the FNPRM information collection analysis, the
Commission assumes that the FNPRM proceeding will result in the
adoption of a permanent small entity exemption for accessibility
obligations under section 716 of the Act that is identical to the
temporary small entity exemption adopted in the Accessibility Report
and Order, 47 CFR 14.4 of the Commission's rules, that will expire on
October 8, 2013. The adoption of such a small entity exemption rule may
impact the following possible related information collection
requirements:
(a) Petitions for waivers from the accessibility obligations of
section 716 of the Act and, in effect, waivers from the recordkeeping
requirements and enforcement procedures of section 717 of the Act that
may be filed by advanced communications service providers and equipment
manufacturers. Waiver requests may be submitted for individual or class
offerings of services or equipment which are designed for multiple
purposes, but are designed primarily for purposes other than using
advanced communications services. All such waiver petitions will be put
on public notice for comments and oppositions.
(b) The requirement for service providers and equipment
manufacturers that are subject to sections 255, 716, or 718 of the Act
to maintain records of the following: (1) Their efforts to consult with
people with disabilities; (2) descriptions of the accessibility
features of their products and services; and (3) information about the
compatibility of their products with peripheral devices or specialized
customer premises equipment commonly used by individuals with
disabilities to achieve access.
(c) The requirement for an officer of service providers and
equipment manufacturers that are subject to sections 255, 716, or 718
of the Act to certify annually to the Commission that records are kept
in accordance with the recordkeeping requirements. The certification
must also identify the name and contact details of the person or
persons within the company that are authorized to resolve accessibility
complaints, and the agent designated for service of process. The
certification must be updated when necessary to keep the contact
information current.
(d) The filing of formal and informal complaints alleging
violations of sections 255, 716, or 718 of the Act. As a prerequisite
to filing an informal complaint, complainants must first request
dispute assistance from the Consumer and Governmental Affairs Bureau's
Disability Rights Office.
Summary
I. Introduction and Overview
1. In this FNPRM, we seek comment on whether to adopt a permanent
exemption for small entities and, if so, whether it should be based on
the temporary exemption or some other criteria. We seek comment on the
impact of a permanent exemption on providers of ACS and manufacturers
of ACS equipment, including the compliance costs for small entities
absent a permanent exemption. We also seek comment on the impact of a
permanent exemption on consumers, including on the availability of
accessible ACS and ACS equipment and on the accessibility of new ACS
innovations or ACS equipment innovations. We propose to continually
monitor the impact of any small entity exemption, including whether it
promotes innovation or whether it has unanticipated negative
consequences on the accessibility of ACS.
2. We propose to clarify that Internet browsers are software
generally subject to the requirements of section 716, with the
exception of the discrete category of Internet browsers built into
mobile phones used by individuals who are blind or have a visual
impairment, which Congress singled out for particular treatment in
section 718. We seek to further develop the record on the technical
challenges associated with ensuring that Internet browsers built into
mobile phones and those browsers incorporated into computers, laptops,
tablets, and devices other than mobile phones are accessible to and
usable by persons with disabilities.
3. With regard to section 718, which is not effective until 2013,
we seek comment on the best way(s) to implement section 718 so as to
afford affected manufacturers and service providers the opportunity to
provide input at the outset, as well as to make the necessary
arrangements to achieve compliance at such time as the provisions of
section 718 become effective.
4. To ensure that we capture all the equipment Congress intended to
fall within the scope of section 716, we seek comment on alternative
proposed definitions of ``interoperable'' as used in the term
``interoperable video conferencing.'' Additionally, we ask whether we
should require that video mail service be accessible to individuals
with disabilities when provided along with a video conferencing
service. We seek to further develop the record regarding specific
activities that impair or impede the accessibility of information
content. We also seek comment on whether performance objectives should
include certain testable criteria. In addition, we seek comment on
whether certain safe harbor technical standards will allow the various
components in the ACS architecture to work together more efficiently,
thereby facilitating accessibility. We also seek comment on the
definition of ``electronically mediated services,'' the extent to which
electronically mediated services are covered under section 716, and how
they can be used to transform ACS into an accessible form.
A. Small Entity Exemption
5. As we explained in the Accessibility Report and Order, section
716(h)(2) of the Act authorizes the Commission to exempt small entities
from the requirements of section 716, and as an effect, the concomitant
obligations of section 717. The exemption relieves from section 716
small entities that may lack the legal, technical, or financial ability
to incorporate accessibility features, conduct an achievability
analysis, or comply with the section 717 recordkeeping and
certification requirements. In the Accessibility Report and Order, we
found the record insufficient to adopt a permanent exemption or to
adopt the criteria to be used to determine which small entities to
exempt. Instead, we exercised our authority to temporarily exempt all
manufacturers of ACS equipment and providers of ACS that are small
business
[[Page 82243]]
concerns under applicable SBA rules and size standards. The temporary
exemption will expire on the earlier of: (1) the effective date of
small entity exemption rules adopted pursuant to the FNPRM; or (2)
October 8, 2013.
6. We first seek comment on whether to permanently exempt from the
obligations of section 716, manufacturers of ACS equipment and
providers of ACS that qualify as small business concerns under the
SBA's rules and size standards and, if so whether to utilize the size
standards for the primary industry in which they are engaged under the
SBA's rules. The SBA criteria were established for the purpose of
determining eligibility for SBA small business loans. Are these same
criteria appropriate for the purpose of relieving covered entities from
the obligations associated with achievability analyses, recordkeeping,
and certifications? If these size criteria are not appropriate for a
permanent exemption, what are the appropriate size criteria? Are there
other criteria that should form the basis of a permanent exemption?
7. As explained in the Accessibility Report and Order, small
business concerns under the SBA's rules must meet the SBA size standard
for six-digit NAICS codes for the industry in which the concern is
primarily engaged. To determine an entity's primary industry, the SBA
``considers the distribution of receipts, employees and costs of doing
business among the different industries in which business operations
occurred for the most recently completed fiscal year. SBA may also
consider other factors, such as the distribution of patents, contract
awards, and assets.'' We seek comment on the applicability of this rule
for the permanent small entity exemption.
8. We seek comment on the applicability of the SBA definition of
``business concern.'' Under SBA's rules, a business concern is an
``entity organized for profit, with a place of business located in the
United States, and which operates primarily within the United States or
which makes a significant contribution to the U.S. economy through
payment of taxes or use of American products, materials or labor.'' We
also seek comment on the applicability of other SBA rules for
determining whether a business qualifies as a small business concern,
including rules for determining annual receipts or employees and
affiliation between businesses.
9. We also seek comment on alternative size standards that the
Commission has adopted in other contexts. In establishing eligibility
for spectrum bidding credits, the Commission has adopted alternative
size standards for ``very small'' and ``small'' businesses. The
Commission has defined ``very small'' businesses for these purposes as
entities that, along with affiliates, have average gross revenues over
the three preceding years of either $3 million or less, or $15 million
or less, depending on the service. The Commission has defined ``small''
businesses in this context as entities that, along with affiliates,
have average gross revenues over the three preceding years of either
$15 million or less, or $40 million or less, depending on the service.
The Commission has also adopted detailed rules for determining
affiliation between an entity claiming to be a small business and other
entities. Finally, in at least one instance, the Commission defined a
small business in the spectrum auction context as an entity that, along
with its affiliates, has $6 million or less in net worth and no more
than $2 million in annual profits (after federal income tax and
excluding carry over losses) each year for the previous two years. We
seek comment on whether these alternatives--in whole, in part, or in
combination--should form the basis for a permanent small entity
exemption from the requirements of section 716.
10. The Commission has also used different size standards to define
small cable companies and small cable systems, and the Act includes a
definition of small cable system operators. The Commission has defined
small cable companies as a cable company serving 400,000 or fewer
subscribers nationwide, and small cable systems as a cable system
serving 15,000 or fewer subscribers. The Act defines small cable system
operators as ``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.'' We seek
comment on whether these alternatives--in whole, in part, or in
combination--should form the basis for a permanent small entity
exemption from the requirements of section 716.
11. In addition, we seek comment on any other criteria that might
form all or part of a permanent small entity exemption. For example,
the SBA primarily uses two measures to determine business size--the
maximum number of employees or maximum annual receipts of a business
concern--but it has also applied other measures that represent the
magnitude of operations of a business within an industry, including
``total assets'' held by an entity and the ``net worth'' and ``net
income'' for an entity. Does an exemption based on some criterion other
than employee count or revenues better meet Congressional intent?
Commenters are encouraged to explain fully any alternative--including
the alternative of adopting no exemption for small entities--and to
specifically support any alternative criteria proffered, including by
demonstrating the anticipated impact on consumers and small entities.
12. We also seek comment on whether to limit the exemption to only
the equipment or service that is designed while an entity meets the
requirements of any small business exemption we may adopt. If an entity
offers for sale a new version, update or other iteration of the
equipment or service, we seek comment on whether the update
automatically should be covered by the exemption or whether the
exemption should turn on whether the entity was still capable of
meeting the exemption during the design phase of the new version,
iteration, or update.
13. We seek comment on whether to make a permanent small entity
exemption self-executing. If self-executing, entities would be able to
raise the exemption during an enforcement proceeding but would
otherwise not be required to formally seek the exemption before the
Commission. In this scenario, the entity seeking the exemption would be
required to determine on its own whether it qualifies as a small
business concern.
14. We seek comment on the impact of a permanent exemption on
providers of ACS, manufacturers of ACS equipment, and consumers. What
percentage of, or which non-interconnected VoIP providers, wireline or
wireless service providers, electronic messaging providers, and ACS
equipment manufacturers would qualify as small business concerns under
each size standard? Conversely, what percentage of or which providers
of ACS or manufacturers of equipment used for ACS are not small
business concerns under each size standard? For each ACS and ACS
equipment market segment, what percentage of the market is served by
entities that are not exempt using each size standard?
15. We seek comment on the compliance costs that ACS providers and
ACS equipment manufacturers would incur absent a permanent exemption.
What would the costs be for compliance with section 716 and section 717
across different providers of ACS and ACS equipment manufacturers if we
decline to adopt any permanent
[[Page 82244]]
exemption or decline to make the temporary exemption permanent? In
particular, what are the costs of conducting an achievability analysis,
recordkeeping, and providing certifications?
16. We seek comment generally on the impact of a small business
exemption on consumers. Are there ACS or ACS equipment that may
significantly benefit people with disabilities that are provided or
manufactured by entities that might be exempt? If so, what are the
services or equipment or the types of services or equipment, and how
would the exemption impact people with disabilities? Would a permanent
exemption disproportionately impact people with disabilities in rural
areas versus urban or suburban areas? How would a permanent exemption
impact people with disabilities living on tribal lands? To what extent
would a permanent exemption impact the ability of people with
disabilities to access new ACS innovations or ACS equipment
innovations? Will a permanent exemption have a greater impact on the
accessibility of some segments of ACS or ACS equipment than others?
17. We intend to monitor the impact of any exemption, including
whether it is promoting innovation as Congress intended or whether it
is having unanticipated negative consequences on accessibility of ACS.
While we propose not to time limit any exemption, we retain the ability
to modify or repeal the exemption if doing so would serve the public
interest and is consistent with Congressional intent. We seek comment
on these proposals.
B. Section 718 Implementation
18. Under section 718, a mobile phone manufacturer that includes a
browser, or a mobile phone service provider that arranges for a browser
to be included on a mobile phone, must ensure that the browser
functions are accessible to and usable by individuals who are blind or
have a visual impairment, unless doing so is not achievable. Congress
provided that the effective date for these requirements is three years
after the enactment of the CVAA, i.e., October 8, 2013.
19. In enacting section 718, we believe that Congress carved out an
exception to section 716 and delayed the effective date to address a
special class of browsers for a specific subset of the disabilities
community because of the unique challenges of achieving non-visually
accessible solutions in a mobile phone and the relative youth of
accessible development for mobile platforms. This technical complexity
arises because three accessibility technologies, often developed by
different parties, must be synchronized effectively together for a
browser to be accessible to a blind user of a mobile phone: (1) An
accessibility API of the operating system; (2) the implementation of
that API by the browser; and (3) its implementation by a screen reader.
Because non-visual accessibility is generally the most technically
challenging form of accessibility to accomplish, an accessibility API
is needed to render the underlying meaning of key elements of a
graphical user interface in an alternate, non-visual form, such as
synthetic speech or refreshable Braille. For example, while Microsoft
has developed Microsoft Active Accessibility (MSAA), the dominant
accessibility API on Windows desktop computers, it has not yet defined
and deployed an accessibility API for the current Windows phone
platform that can be utilized by browser and screen reader developers
for that platform. Even after an API becomes available, a significant
process of coordination, testing, and refinement is needed to ensure
that the browser/server and screen reader/client components can
interact in a comprehensive and robust manner.
20. Additional lead-time must also be built-in as this kind of
technical development and coordination is needed on each mobile
platform. Present technological trends have resulted in relatively
short generations of mobile platforms, each benefiting from increasing
miniaturization of hardware components and increased bandwidth for
transmitting data to and from the cloud. Experimentation and innovation
with new ways of maximizing the productivity of mobile platforms, given
these technological trends, has made accessibility coordination
difficult. Finally, additional challenges are presented by the
technical limitations posed by mobile platforms (lower memory capacity,
low-bandwidth constraints, smaller screens) coupled with the fact that
web content often has to be specially formatted to run on mobile
platforms.
21. In the context of discussing the development of accessible
mobile phone options for persons who are blind, deaf-blind, or have low
vision, the industry has acknowledged the technological shortcomings in
the ability of both hardware and software to incorporate accessibility
features in mobile phones. Specifically, TIA has indicated that ``[not]
all mobile devices can support the additional fundamental components
needed to provide a full screen reader feature; there may be
limitations in the software platform or limitations in the accompanying
hardware, e.g., processing power, memory limitations.'' TIA also
indicated that more advanced accessibility features are not easily
integrated and require the development of specific software codes for
each feature on each device. Sprint, however, asserts that over time,
mobile phones will eventually evolve like personal computers have, from
``out-of-the-box'' systems to today's dynamic, highly customizable
systems, as mobile device performance metrics such as processing speed,
power, and memory capacity improve. In short, as mobile device
technologies continue to evolve over time, corresponding improvements
in hardware and software will improve accessibility in the future.
22. We seek comment on our proposed clarification that Congress
added section 718 as an exception to the general coverage of Internet
browsers as software subject to the requirements of section 716 for
Internet browsers built in or installed on mobile phones used by
individuals who are blind or have a visual impairment because of the
unique challenges associated with achieving mobile access for this
particular community. We also seek comment on the best way(s) to
implement section 718, so as to afford affected manufacturers and
service providers the 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.
23. We seek further 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. Would an accessibility API simplify the process for
developing accessible screen readers for mobile phones and if so,
should there be a separate API for each operating system that supports
a browser? Is there a standard-setting body to develop such APIs or
would such a process have to be driven by the manufacturers of mobile
operating system software? What are the technical challenges, for both
software developers and manufacturers, involved in developing an
accessibility API?
24. What are the specific technical challenges involved in
developing screen reader software applications for each mobile platform
(e.g., iPhone,
[[Page 82245]]
Android, Windows Mobile)? What security questions are raised by the use
of screen readers? Are there specific security risks posed to operating
systems by the presence of screen readers? What types of technical
support/customer service will mobile phone operators need to provide to
ensure initial and continued accessibility in browsers that are built
into mobile phones? Are there steps the Commission could take to
facilitate effective, efficient, and achievable accessibility
solutions?
25. We seek to better understand these technical complexities and
how we can encourage effective collaboration among the service
providers, and the manufacturers of end user devices, the operating
system, the browser, screen readers and other stakeholders. We
particularly welcome input on how the Commission can facilitate the
development of solutions to the technical challenges associated with
ensuring access to Internet browsers in mobile phones.
26. With respect to equipment and services covered by section 716,
the Accessibility Report and Order gradually phases in obligations of
covered entities with full compliance required on October 8, 2013 in
order to encourage covered entities to implement accessibility features
early in product development cycles, to take into account the
complexity of these regulations, and to temper our regulations' effect
on previously unregulated entities. We found this approach to be
consistent with Commission precedent where we have utilized phase-in
periods in similarly complex rulemakings. As we have stated above, we
believe that Congress drafted section 718 as a separate provision from
section 716 to emphasize the importance of ensuring access to mobile
browsers for people who are blind or visually impaired because of the
unique technical challenges associated with ensuring effective
interaction between browsers and screen readers operating over a mobile
platform. Given these complex technical issues, we seek comment on what
steps we should take to ensure that the mobile phone industry will be
prepared to implement accessibility features when section 718 becomes
effective on October 8, 2013.
C. Interoperable Video Conferencing Services
1. Meaning of Interoperable
27. In the Accessibility NPRM, the Commission asked how to define
``interoperable'' in a manner that is faithful to both the statutory
language and the broader purposes of the CVAA, 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. Many commenters appear to consider
``inter-platform, inter-network, and inter-provider'' as requisite
characteristics of interoperability. ITI suggests that
``interoperability between platforms is not currently achievable,'' but
that Congress recognized that some forms of accessibility will take
time and that ``[t]his is an example of such a situation.'' We are
concerned that this proposed definition would exclude virtually all
existing video conferencing services and equipment from the
accessibility requirements of section 716, which we believe would be
contrary to Congressional intent.
28. We believe that interoperability is a characteristic of
usability for many individuals who are deaf or hard of hearing and for
whom video conferencing services are, by themselves, accessibility
solutions. We also agree with Consumer Groups that ``[w]ithout
interoperability, communication networks [are] segmented and require
consumers to obtain access to multiple, closed networks using
particularized equipment.'' For example, video relay service (``VRS'')
equipment users must obtain and use other video conferencing services
and equipment to engage in real-time video communication with non-VRS-
equipment users. In addition to possibly defining ``interoperable'' as
``inter-platform, inter-network, and inter-provider,'' ITI also
suggests that the term ``interoperable'' could be defined as
``interoperable with [VRS] or among different video conferencing
services.'' As an alternative, the IT and Telecom RERCs suggest that a
system that publishes its standard and allows other manufacturers or
service providers to build products or services to work with it should
be considered interoperable.
29. Accordingly, we seek comment on the following alternative
definitions of ``interoperable'' in the context of video conferencing
services and equipment used for those services: (1) ``Interoperable''
means able to function inter-platform, inter-network, and inter-
provider; (2) ``interoperable'' means having published or otherwise
agreed-upon standards that allow for manufacturers or service providers
to develop products or services that operate with other equipment or
services operating pursuant to the standards; or (3) ``interoperable''
means able to connect users among different video conferencing
services, including VRS.
30. We seek comment on each of the above proposed definitions of
``interoperable.'' Should only one of the proposed definitions be
adopted, and should we reject the other two definitions, or should we
adopt multiple definitions and find that video conferencing services
are interoperable as long as any one of the three definitions is
satisfied? In other words, should we consider the three proposed
definitions as three alternative tests for interoperability? In regard
to the first alternative--``inter-platform, inter-network, and inter-
provider''--we seek comment on the extent to which video conferencing
services or equipment must be different or distinct to qualify under
this definition. In regard to the second alternative, when does a
standard determine interoperability? Is publication by a standards-
setting body enough, even if only one manufacturer or service provider
follows that standard? If a manufacturer or service provider publishes
a standard and invites others to utilize it, is that enough to
establish interoperability? If not, is interoperability established as
soon as a second manufacturer or service provider utilizes the
standard? If not, what is enough to establish interoperability? If two
or more manufacturers or service providers agree to a standard without
publication, is interoperability established? If not, is
interoperability established if they invite others to receive a private
copy of the standards, but do not publish the standards for public
consumption? If video conferencing services can be used to communicate
with public safety answering points, does that establish
interoperability? If not, what else must be done to establish
interoperability? Does the ability to connect to VRS make a video
conferencing service ``interoperable'' or ``accessible'' or both? If
users of different video conferencing services, including VRS, can
communicate with each other, does that establish interoperability, even
if there are no set standards? If communications among different
services is not enough, what then is enough to establish
interoperability?
31. Interest in and consumer demand for cross-platform, network,
and provider video conferencing services and equipment continues to
rise. We do not believe that interoperability among different platforms
will ``hamper service providers' attempts to distinguish themselves in
the marketplace and thus hinder innovation.'' While we consider this
matter more fully in this FNPRM,
[[Page 82246]]
we urge industry ``to develop standards for interoperability between
video conferencing services as it has done for text messaging, picture
and video exchange among carriers operating on different technologies
and equipment.'' We also urge industry, consumers, and other
stakeholders to identify performance objectives that may be necessary
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. In other words, what
does ``accessible to and usable by individuals with disabilities'' mean
in the context of interoperable video conferencing services and
equipment? Are accessibility performance and other objectives different
for ``interoperable'' video conferencing services? For example, does
accessibility for individuals who are deaf or hard of hearing include
being enabled to connect with an interoperable video conferencing
service call through a relay service other than VRS? How can we ensure
that video conferencing services and equipment are accessible to people
with other disabilities, such as people who are blind or have low
vision, or people with mobility, dexterity, cognitive, or intellectual
disabilities? Notwithstanding existing obligations under the Act, we
propose that industry considers accessibility alongside the technical
requirements and standards that may be needed to achieve
interoperability so that as interoperable video conferencing services
and equipment come into existence, they are also accessible.
Interoperable video conferencing services and equipment, when offered
by providers and manufacturers, must be accessible to and usable by
individuals with disabilities, as required by section 716, and such
providers and manufacturers are subject to the recordkeeping and annual
certification requirements of section 717 starting on the effective
date of these rules.
2. Coverage of Video Mail
32. In the Accessibility NPRM, the Commission sought comment on
whether services that otherwise meet the definition of interoperable
video conferencing services but that also provide non-real-time or near
real-time functions (such as ``video mail'') are covered and subject to
the requirements of section 716. If such functions are not covered, the
Commission asked whether it should, similar to what it did in the
section 255 context, assert its ancillary jurisdiction to cover video
mail.
33. We agree with commenters that non-real-time or near-real-time
features or functions of a video conferencing service, such as video
mail, do not meet the definition of ``real-time'' video communications.
Nonetheless, we do not have a sufficient record as to whether we should
exercise our ancillary jurisdiction to require that a video mail
service be accessible to individuals with disabilities when provided
along with a video conferencing service as the Commission did in the
context of section 255 in regard to voice mail, and we now seek comment
on this issue. The record is also insufficient to decide whether our
ancillary jurisdiction extends to require other features or functions
provided along with a video conferencing service, such as recording and
playing back video communications on demand, to be accessible, and we
seek comment on this issue as well. Do we have other sources of direct
authority, besides section 716, to require that video mail and other
features, such as recording and playing back video communications, are
accessible to individuals with disabilities? Would the failure to
ensure accessibility of video mail and the related equipment that
performs these functions undermine the accessibility and usability of
interoperable video conferencing services? Similarly, would the failure
to ensure accessibility of recording and playing back video
communications on demand and the related equipment that performs these
functions undermine the accessibility and usability of interoperable
video conferencing services?
D. Accessibility of Information Content
34. Section 716(e)(1)(B) of the Act requires the Commission to
promulgate regulations providing that 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. In the Accessibility Report and Order,
we adopt this broad rule, incorporating the text of section
716(e)(1)(B), as proposed in the Accessibility NPRM. Here, we seek
comment on the IT and Telecom RERCs' suggestion that we interpret the
phrase ``may not impair or impede the accessibility of information
content'' to include the concepts set forth below. IT and Telecom RERC
has submitted a proposal regarding how we should interpret and apply
our accessibility of information content guidelines, including the
following recommendations that covered entities:
[cir] Shall not install equipment or features that can't or don't
support accessibility information;
[cir] Shall not configure network equipment such that it would
block or discard accessibility information;
[cir] Shall display any accessibility related information that is
present in an industry recognized standard format;
[cir] Shall not block users from substituting accessible versions
of content; and
[cir] Shall not prevent the incorporation or passing along of
accessibility related information.
E. Electronically Mediated Services
35. In the Accessibility Report and Order, we declined to expand
our definition of peripheral devices to mean ``devices employed in
connection with equipment covered by this part, including software and
electronically mediated services, to translate, enhance, or otherwise
transform advanced communications services into a form accessible to
people with disabilities'' as the IT and Telecom RERCs propose).
Because the record is insufficient, we seek further comment on the IT
and Telecom RERCs' proposal and on the definition of ``electronically
mediated services.'' We also seek comment on the extent to which
electronically mediated services are covered under section 716 and how
they can be used to transform ACS into an accessible form.
F. Performance Objectives
36. 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 Accessibility NPRM, the Commission sought
comment on how to make its performance standards testable, concrete,
and enforceable. In the Accessibility Report and Order, we incorporated
into the performance objectives the definitions of accessible,
compatibility, and usable, in Sec. Sec. 6.3 and 7.3 of the
Commission's rules. In their Reply Comments, however, the IT and
Telecom RERCs argued that, instead of relying on our part 6
requirements, the Commission's performance objectives should include
testable criteria. The IT and Telecom RERCs proposed specific
``Aspirational Goal and Testable Functional Performance Criteria'' in
[[Page 82247]]
their Reply Comments. We seek comment on those criteria.
G. Safe Harbors
37. As explained in the Accessibility Report and Order, we decline
at this time to adopt technical standards as safe harbors. However, we
recognize the importance of the various components in the ACS
architecture working together to achieve accessibility and seek comment
on whether certain safe harbor technical standards can further this
goal.
38. Specifically, we seek comment on whether, as ITI proposes, ACS
manufacturers can ensure compliance with the Act ``by programmatically
exposing the ACS user interface using one or more established APIs and
specifications which support the applicable provisions in ISO/IEC
13066-1:2011.'' Other standards may also form the basis of a safe
harbor for compliance with section 716, including the ``W3C/WAI Web
Content Accessibility Guidelines, Version 2.0 and section 508 of the
Rehabilitation Act of 1973, as amended.'' We seek comment on the use of
these standards, and any others, as safe harbors for compliance with
section 716.
39. For the purpose of keeping safe harbors up-to-date with
technology and ensuring ongoing compliance with the Act, we seek
comment on whether ``it should be the responsibility of the appropriate
manufacturer or standards body to inform the Commission when new,
relevant APIs and specifications are made available to the market that
meet the * * * standard.'' If we decide to adopt a safe harbor based on
recognized industry standards, we seek comment on how the industry,
consumers, and the Commission can verify compliance with the standard.
Should entities be required to self-certify compliance with a safe
harbor? Is there a standard for which consumers can easily test
compliance with an accessible tool? What are the compliance costs for
ACS manufacturers and service providers of the Commission adopting safe
harbor technical standards based on recognized industry standards? Will
adopting safe harbor technical standards based on recognized industry
standards reduce compliance costs for ACS manufacturers and service
providers?
40. We recognize tension may exist between the relatively slow
standards setting process and the rapid pace of technological
innovation. How should the Commission account for the possibility that
the continued development of a standard on which a safe harbor is based
may be outpaced by technology? Should we for purposes of determining
compliance with a safe harbor apply only safe harbors that were
recognized industry standards at the time of the design phase for the
equipment or service in question? Is there another time period in the
development of the equipment or service that is more appropriate?
H. Section 718 Recordkeeping and Enforcement
41. Background. In the Accessibility NPRM, the Commission invited
comment on recordkeeping requirements for section 718 covered entities.
The Commission noted that recordkeeping requirements for section 718
entities would be considered further in light of comments on general
section 718 implementation. The Commission also sought comment on
informal complaint, formal complaint, and other general requirements
for complaints alleging violations of section 718 and the Commission's
implementing rules.
42. Discussion. In the Accessibility Report and Order, we adopt the
same recordkeeping and complaint procedures for section 718 covered
entities that we adopt for section 716 covered entities. Specifically,
we adopt recordkeeping requirements for section 718 covered entities
that go into effect one year after the effective date of the rules
adopted in the Accessibility Report and Order. We also adopt informal
complaint and formal complaint procedures as well as other general
requirements for complaints filed against section 718 covered entities
for violations of section 718 and the Commission's implementing rules.
These complaint procedures go into effect for section 718 covered
entities on October 8, 2013, three years after the CVAA was enacted.
43. In this FNPRM, we seek comment on the implementation of section
718 specifically. In this section, we invite comment on whether the
section 718 recordkeeping requirements, which we adopt in the
Accessibility Report and Order, should be retained or altered in light
of the record developed in response to this FNPRM on section 718. We
ask that parties suggesting changes to the rules provide an assessment
of the relative costs and benefits associated with (1) the rule they
wish to see changed and (2) the alternative that they propose.
II. Procedural Matters
Ex Parte Rules--Permit-But-Disclose Proceeding
44. Pursuant to 47 CFR 1.1200 et seq., this matter shall be treated
as a ``permit-but-disclose'' proceeding in accordance with the
Commission's ex parte rules. Persons making ex parte presentations must
file a copy of any written presentation or a memorandum summarizing any
oral presentation within two business days after the presentation
(unless a different deadline applicable to the Sunshine period
applies). Persons making oral ex parte presentations are reminded that
memoranda summarizing the presentation must: (1) List all persons
attending or otherwise participating in the meeting at which the ex
parte presentation was made; and (2) summarize all data presented and
arguments made during the presentation. If the presentation consisted
in whole or in part of the presentation of data or arguments already
reflected in the presenter's written comments, memoranda or other
filings in the proceeding, the presenter may provide citations to such
data or arguments in his or her prior comments, memoranda, or other
filings (specifying the relevant page and/or paragraph numbers where
such data or arguments can be found) in lieu of summarizing them in the
memorandum. Documents shown or given to Commission staff during ex
parte meetings are deemed to be written ex parte presentations and must
be filed consistent with Sec. 1.1206(b) of the Commission's rules. In
proceedings governed by Sec. 1.49(f) of the Commission's rules or for
which the Commission has made available a method of electronic filing,
written ex parte presentations and memoranda summarizing oral ex parte
presentations, and all attachments thereto, must be filed through the
electronic comment filing system available for that proceeding, and
must be filed in their native format (e.g., .doc, .xml, .ppt,
searchable .pdf). Participants in this proceeding should familiarize
themselves with the Commission's ex parte rules.
Initial Regulatory Flexibility Analysis
45. 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 Further Notice of
Proposed Rulemaking (``FNPRM''). Written public comments are requested
on this IRFA. Comments must be identified as responses to the IRFA and
must be filed by the applicable deadlines for initial comments, or
reply comments, as specified in the FNPRM.
[[Page 82248]]
The Commission will send a copy of the FNPRM, including this IRFA, to
the Chief Counsel for Advocacy of the Small Business Administration
(``SBA''). In addition, the FNPRM and this IRFA (or summaries thereof)
will be published in the Federal Register.
A. Need for, and Objectives of, the Proposed Rules
46. The Accessibility Report and Order implements Congress' mandate
that people with disabilities have access to advanced communications
services (``ACS'') and ACS equipment. Specifically, the rules adopted
in the Accessibility Report and Order 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'').
47. The Accessibility Report and Order implements the requirements
of section 716 of the Act, which requires providers of ACS and
manufacturers of equipment used for ACS to make their products
accessible to people with disabilities, unless accessibility is not
achievable. The Commission also adopts rules to implement section 717
of the Act, which requires the Commission to establish new
recordkeeping and enforcement procedures for manufacturers and
providers subject to sections 255, 716, and 718.
48. The Accessibility Report and Order finds the record
insufficient to adopt a permanent exemption or to adopt the criteria to
be used to determine which small entities to exempt. The Accessibility
Report and Order therefore temporarily exempts all manufacturers of ACS
equipment and all providers of ACS from the obligations of section 716
if they qualify as small business concerns under the SBA rules and size
standards for the industry in which they are primarily engaged. The
Accessibility Report and Order indicated that such an exemption was
necessary to avoid the possibility of unreasonably burdening ``small
and entrepreneurial innovators and the significant value that they add
to the economy.'' This self-executing exemption would be applied until
the development of a record to determine whether small entities should
be permanently exempted and, if so, what criteria should be used to
define small entities.
49. The Accessibility Report and Order indicated that SBA has
established maximum size standards used to determine whether a business
concern qualifies as a small business concern in its primary industry.
The SBA has generally adopted size standards based on the maximum
number of employees or maximum annual receipts of a business concern.
The SBA categorizes industries for its size standards using the North
American Industry Classification System (``NAICS''), a ``system for
classifying establishments by type of economic activity.'' The
Accessibility Report and Order identified some NAICS codes for possible
primary industry classifications of ACS equipment manufacturers and ACS
providers and the relevant SBA size standards associated with the
codes. The definitions for each NAICS industry classification can be
found by entering the six digit NAICS code in the ``2007 NAICS Search''
function available at the NAICS homepage, https://www.census.gov/eos/www/naics/. The U.S. Office of Management and Budget has
revised NAICS for 2012, however, the codes and industry categories
listed herein are unchanged. OMB anticipates releasing a 2012 NAICS
United States Manual or supplement in January 2012. See 13 CFR 121.201
for a full listing of SBA size standards by six-digit NAICS industry
code. The standards listed in this column establish the maximum size an
entity in the given NAICS industry may be to qualify as a small
business concern.
------------------------------------------------------------------------
NAICS classification NAICS code SBA size standard
------------------------------------------------------------------------
Services
------------------------------------------------------------------------
Wired Telecommunications 517110 1,500 or fewer
Carriers. employees.
Wireless Telecommunications 517210 1,500 or fewer
Carriers (except satellites). employees.
Telecommunications Resellers.... 517911 1,500 or fewer
employees.
All Other Telecommunications.... 517919 $25 million or less in
annual receipts.
Software Publishers............. 511210 $25 million or less in
annual receipts.
Internet Publishing and 519130 500 or fewer
Broadcasting and Web Search employees.
Portals.
Data Processing, Hosting, and 518210 $25 million or less in
Related Services. annual receipts.
------------------------------------------------------------------------
Equipment
------------------------------------------------------------------------
Radio and Television 334220 750 or fewer
Broadcasting and Wireless employees.
Communications Equipment
Manufacturing.
Electronic Computer 334111 1,000 or fewer
Manufacturing. employees.
Telephone Apparatus 334210 1,000 or fewer
Manufacturing. employees.
Other Communications Equipment 334290 750 or fewer
Manufacturing. employees.
Software Publishers............. 511210 $25 million or less in
annual receipts.
Internet Publishing and 519130 500 or fewer
Broadcasting and Web Search employees.
Portals.
------------------------------------------------------------------------
50. The Accessibility Report and Order indicated that this
temporary exemption is self-executing. Under this approach, covered
entitie