Connect America Fund, A National Broadband Plan for Our Future, Universal Service Reform-Mobility Fund, 39435-39439 [2012-16279]
Download as PDF
Federal Register / Vol. 77, No. 128 / Tuesday, July 3, 2012 / Rules and Regulations
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Incorporation by
reference, Intergovernmental relations,
Nitrogen dioxide, Ozone, Particulate
matter, Regional haze, Reporting and
recordkeeping requirements, Sulfur
oxides, Visibility.
Dated: June 15, 2012.
Samuel Coleman,
Acting Regional Administrator, Region 6.
Therefore, 40 CFR part 52, as
amended June 7, 2012, at 77 FR 33657
and effective August 6, 2012, is further
amended as follows:
1. The authority citation for part 52
continues to read as follows:
■
Authority: 42 U.S.C. 7401 et seq.
2. Amend § 52.985 by adding
paragraphs (b) and (c) to read as follows:
■
Visibility protection.
sroberts on DSK5SPTVN1PROD with NOTICES
*
*
*
*
*
(b) The regional haze plan submitted
by Louisiana on June 13, 2008, includes
measures for meeting the requirements
of: 40 CFR 51.308(d), for the core
requirements for regional haze plans,
except for the requirements of 40 CFR
51.308(d)(3); 40 CFR 51.308(f), for the
commitment to submit comprehensive
periodic revisions of regional haze
plans; 40 CFR 51.308(g), for the
commitment to submit periodic reports
describing progress towards the
reasonable progress goals; 40 CFR
51.308(h), for the commitment to
conduct periodic determinations of the
adequacy of the existing regional haze
plan; and 40 CFR 51.308(i), for
coordination with state and Federal
Land Managers. EPA has given partial
limited approval to the plan provisions
addressing these requirements.
(c) The regional haze plan submitted
by Louisiana on June 13, 2008, does not
include fully approvable measures for
meeting the requirements of 40 CFR
51.308(d)(3), long-term strategy for
regional haze as it relies on deficient
non-electric generating units Best
Available Retrofit
Technology (BART) analyses; and 40
CFR 51.308(e), BART requirements for
regional haze visibility impairment with
respect to emissions of visibility
impairing pollutants from four nonelectric generating units. EPA has given
partial disapproval to the plan
provisions addressing these
requirements.
[FR Doc. 2012–15729 Filed 7–2–12; 8:45 am]
BILLING CODE P
VerDate Mar<15>2010
15:49 Jul 02, 2012
47 CFR Part 54
[WC Docket Nos. 10–90, 07–135, 05–337,
03–109; GN Docket No. 09–51; CC Docket
Nos. 01–92, 96–45; WT Docket No. 10–208;
FCC 12–70]
Connect America Fund, A National
Broadband Plan for Our Future,
Universal Service Reform—Mobility
Fund
Federal Communications
Commission.
ACTION: Final rule: limited forbearance.
AGENCY:
In this document, the Federal
Communications Commission
(Commission) adopts a limited
forbearance from requiring that the
service area of an eligible
telecommunications carrier (ETC)
conform to the service area of any rural
telephone company serving the same
area for the Mobility Fund Phase I
auction 901. This forbearance applies
only with respect to conditional ETC
designations for participating in
Auction 901.
DATES: Effective July 3, 2012.
FOR FURTHER INFORMATION CONTACT:
Wireless Telecommunications Bureau,
Auctions and Spectrum Access Division:
call Sayuri Rajapakse, Scott Mackoul or
Stephen Johnson at (202) 418–0660.
SUPPLEMENTARY INFORMATION: This is a
summary of the CAF/ICC Second Report
and Order released on June 27, 2012.
The CAF/ICC Second Report and Order
and related Commission documents
may be purchased from the
Commission’s duplicating contractor,
Best Copy and Printing, Inc. (BCPI), 445
12th Street SW., Room CY–B402,
Washington, DC 20554, telephone 202–
488–5300, fax 202–488–5563, or you
may contact BCPI at its Web site:
https://www.BCPIWEB.com. When
ordering documents from BCPI, please
provide the appropriate FCC document
number, for example, FCC 12–70. The
CAF/ICC Second Report and Order and
related documents also are available on
the Internet at the Commission’s Web
site: https://wireless.fcc.gov or by using
the search function for WT Docket No.
10–208 on the Commission’s Electronic
Comment Filing System (ECFS) Web
page at https://www.fcc.gov/cgb/ecfs/.
SUMMARY:
PART 52—[AMENDED]
§ 52.985
FEDERAL COMMUNICATIONS
COMMISSION
Jkt 226001
I. Introduction
1. The Commission adopts a limited
forbearance pursuant to section 10 of
the Communications Act of 1934, as
amended (the Act), 47 U.S.C. 160, from
requiring that the service area of an
eligible telecommunications carrier
PO 00000
Frm 00051
Fmt 4700
Sfmt 4700
39435
(ETC) conform to the service area of any
rural telephone company serving the
same area, pursuant to 47 U.S.C.
214(e)(5) and 47 CFR 54.207(b). In
particular, this forbearance applies only
with respect to conditional ETC
designations for participating in the
Mobility Fund Phase I auction, ETC
designations conditioned on receipt of
Mobility Fund Phase I support. Such
conditional ETC designations, and thus
this forbearance, are also limited to the
specific areas in which such an ETC
becomes authorized to receive Mobility
Fund Phase I support.
2. The Commission concludes that
forbearance in these limited
circumstances furthers the public
interest, advancing the Act’s and the
Commission’s goals of promoting access
to mobile service over current and next
generation wireless networks in areas
currently without such service by
reducing barriers to participation in
Phase I of the Mobility Fund. The
Commission finds that application of
the service area conformance
requirements set forth in 47 U.S.C.
214(e)(5) and 47 CFR 54.207(b) in these
limited circumstances is not necessary
to ensure that rates remain just and
reasonable or to protect consumers. The
Commission emphasizes that the
forbearance it is granting is limited to
petitioners seeking conditional
designation as ETCs in areas eligible for
Mobility Fund Phase I support in order
to participate in the Mobility Fund
Phase I auction and receive support.
Parties petitioning for designation as an
ETC for this purpose must satisfy all of
the other statutory requirements
applicable to ETCs under the Act. The
forbearance order does not apply with
respect to petitions for designation as an
ETC for other purposes. In light of the
requirement that, with one exception for
Tribal entities, an applicant for the
Mobility Fund Phase I auction, Auction
901, must be designated as an ETC in
every geographic area on which it
wishes to bid by the time it applies to
participate and in light of the short time
remaining before the July 11, 2012
deadline for filing Auction 901
applications, the Commission finds that
case-by-case forbearance is not feasible
and grant blanket forbearance for this
limited purpose.
II. Background
3. In the recent USF/ICC
Transformation Order, 76 FR 73830,
November 29, 2011 and 76 FR 81562,
December 28, 2011, the Commission
comprehensively reformed and
modernized the universal service
system to ensure that robust, affordable
voice and broadband service, both fixed
E:\FR\FM\03JYR1.SGM
03JYR1
sroberts on DSK5SPTVN1PROD with NOTICES
39436
Federal Register / Vol. 77, No. 128 / Tuesday, July 3, 2012 / Rules and Regulations
and mobile, are available to Americans
throughout the nation. As part of this
comprehensive reform effort, the
Commission adopted the goal of
ensuring universal availability of
modern networks capable of providing
advanced mobile voice and broadband
service. To further achievement of that
goal, the Commission created the
Mobility Fund to ensure availability of
mobile broadband networks in areas
where a private-sector business case for
those networks is lacking. In particular,
the Commission provided that in Phase
I of the Mobility Fund, it would award
by reverse auction up to $300 million in
one-time support to immediately
accelerate deployment of current and
next generation networks providing
mobile voice and broadband services in
areas not presently covered by such
networks.
4. Auction 901 is scheduled to take
place on September 27, 2012, and those
wishing to participate must file an
auction application by July 11, 2012.
The Wireless Telecommunications and
the Wireline Competition Bureaus
(Bureaus) have identified, pursuant to
the Commission’s criteria, particular
census blocks that are eligible for
Mobility Fund Phase I support in
Auction 901. In Auction 901, applicants
will bid for the amount of support they
need to meet the Mobility Fund Phase
I service and other public interest
obligations in the eligible census blocks
covered by the geographic area on
which they bid. Applicants, except for
Tribally-owned and controlled entities,
must be designated as ETCs in the areas
on which they wish to bid prior to filing
their auction applications. The
designation may be conditional subject
to the receipt of Mobility Fund Phase I
support. The Commission currently has
pending three petitions for conditional
designation as an ETC for purposes of
participating in Auction 901.
5. Congress directed the Commission
to establish policies to help ensure that
quality services are available at just,
reasonable, and affordable rates and
access to advanced telecommunications
and information services are provided
in all regions of the Nation. The
Commission’s Mobility Fund Phase I
will help achieve this goal by providing
support for the expansion of current and
next generation wireless networks in
areas currently unserved by such
networks. 47 U.S.C. 254(e) provides that
only an entity designated as an eligible
telecommunications carrier shall be
eligible for universal service high-cost
and low-income support. To become an
ETC, a carrier must offer and advertise
the services supported by the federal
VerDate Mar<15>2010
15:49 Jul 02, 2012
Jkt 226001
universal service support mechanisms
throughout its designated service area.
6. The Act and the Commission’s
rules define the term service area and
how it is established for each ETC. An
ETC’s service area is a geographic area
within which an ETC has universal
service obligations and may receive
universal service support. A carrier
seeking to become an ETC typically
requests designation in a specific
service area, but it is the commission
designating that carrier that establishes
the ETC’s service area. When a
competitive carrier seeks to serve an
area already served by a rural telephone
company, 47 U.S.C. 214(e)(5) requires
that the competitive ETC’s service area
must conform to the rural telephone
company’s service area. Accordingly, if
a commission wishes to designate a
competitive ETC for an area that differs
from a rural telephone company’s
existing service area, that rural service
area must first be redefined under the
process set forth under the Act.
7. The Act defines the service area of
each rural telephone company’s to be
that company’s study area unless and
until the Commission and the States,
after taking into account
recommendations of a Federal-State
Joint Board establish a different
definition of service area for such
company. The Commission has
interpreted this language to mean that
neither the Commission nor the states
may act alone to alter the definition of
service areas served by rural carriers. In
reviewing a potential redefinition of a
rural service area in evaluating a request
for ETC designation, the Commission
and the states have traditionally taken
into account the three factors
recommended by the Federal-State Joint
Board on Universal Service: Cream
skimming, the Act’s special treatment of
rural telephone companies, and the
administrative burdens of redefinition.
The Commission’s rules set forth the
procedures for considering redefinition
petitions and allow either the state
commission or the Commission to
propose to redefine a rural telephone
company’s service area. A proposed
redefinition, however, does not take
effect until the Commission and the
appropriate state commission agrees
upon a new definition.
8. In the Mobility Fund NPRM, 75 FR
67060, November 1, 2010, the
Commission sought comment generally
on the ETC designation requirements of
47 U.S.C. 214(e) and on how best to
interpret the provisions of that section
so as to achieve the objectives of the
Mobility Fund. A commenter suggested
that the Commission should forbear
altogether from the requirements of 47
PO 00000
Frm 00052
Fmt 4700
Sfmt 4700
U.S.C. 214(e) for purposes of
participating in the Mobility Fund. The
same commenter also noted that the
service area conformance requirement of
47 U.S.C. 214(e)(5) could create
uncertainty for potential Mobility Fund
applicants and discourage participation,
and suggested that the Commission take
steps to prevent this from happening.
Another commenter suggested that the
Commission streamline the process of
ETC designation to facilitate
participation in the Mobility Fund,
making the ETC designation process
part of the application for Mobility
Fund support, such that designation
would occur upon award of support by
the Commission. That commenter filed
a petition for reconsideration of the
USF/ICC Transformation Order that
proposed, for those seeking Mobility
Fund Phase I support, blanket
forbearance from the requirement that a
competitive ETC’s service area conform
to any underlying rural telephone
carrier’s study area.
III. Discussion
9. The Act allows the Commission to
forbear from applying any requirement
of the Act or of its regulations to a
telecommunications carrier if the
Commission determines that: (1)
Enforcement of the requirement is not
necessary to ensure that the charges,
practices, classifications, or regulations
by, for, or in connection with that
telecommunications carrier are just and
reasonable and are not unjustly or
unreasonably discriminatory; (2)
enforcement of that requirement is not
necessary for the protection of
consumers; and (3) forbearance from
applying that requirement is consistent
with the public interest.
10. The Commission considers
whether it should forbear from applying
47 U.S.C. 214(e)(5) service area
conformance requirement to parties
petitioning for ETC conditional
designation in areas eligible for Mobility
Fund Phase I support in order to
participate in the Mobility Fund Phase
I auction and receive such support. The
Commission concludes that forbearance
is appropriate and in the public interest
under these limited circumstances.
Accordingly, for the limited purpose of
conditional designation as an ETC in
areas eligible for Mobility Fund Phase I
support in order to participate in the
Mobility Fund Phase I auction, the
Commission forbears from applying 47
U.S.C. 214(e)(5) and 47 CFR 54.207(b)
insofar as those sections require that the
service area of such an ETC conform to
the service area of any rural telephone
company. The Commission notes that
forbearing from the conformance
E:\FR\FM\03JYR1.SGM
03JYR1
sroberts on DSK5SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 128 / Tuesday, July 3, 2012 / Rules and Regulations
requirements eliminates the need for
redefinition of any rural telephone
company service areas in the context of
Mobility Fund Phase I. The Commission
emphasizes that this decision does not
change the requirements that apply if a
party petitions to be an ETC for other
purposes in part of a service area served
by a rural telephone company.
11. The Commission concludes that
blanket forbearance from the service
area conformance requirement is
warranted in these limited
circumstances. The Mobility Fund
Phase I rules require that most
applicants must be designated as ETCs
in every geographic area on which they
wish to bid for support, prior to filing
an Auction 901 application. Those rules
also provide that a conditional
designation is sufficient to meet the
requirement, i.e., a designation effective
only for the areas, if any, in which the
ETC becomes authorized to receive
Mobility Fund Phase I support. The
Commission finds that case-by-case
forbearance is not feasible in the short
time available before the filing deadline.
12. The Commission takes this action
after considering the record it received
in response to the Mobility Fund NPRM,
where the Commission sought comment
on how to assure that the provisions of
47 U.S.C. 214(e) would align with the
objectives of this new mechanism for
providing high-cost universal service
support. The record identified the
possibility that the service area
provisions of 47 U.S.C. 214(e), including
the service area conformance
requirement of that section could
discourage participation in the Mobility
Fund Phase I auction. By granting
blanket forbearance of the conformance
requirement for the limited purpose of
petitions for conditional designation to
participate in the auction, the
Commission seeks to prevent that
requirement from creating an obstacle to
participation by any carrier considering
it. Removing such disincentives to
participation may increase competition
in the auction resulting in lower bids for
support and enabling greater coverage
within the Mobility Fund Phase I
budget. The Commission notes that by
granting forbearance in these limited
circumstances, it is allowing new ETCs,
and those existing ETCs that wish to
conditionally expand their service areas
for Auction 901, to match their specific
new and additional service areas to the
geographic area for which they will
incur obligations under Mobility Fund
Phase I. The Commission does not
address relinquishment or redefinition
with respect to the service areas of
existing ETCs with respect to new
targeted support mechanisms other than
VerDate Mar<15>2010
15:49 Jul 02, 2012
Jkt 226001
Mobility Fund Phase I. To the extent
that an existing ETC seeks Mobility
Fund Phase I support for areas within
its existing service area, the new
obligations will apply only to the
portion of their existing service area for
which they win such support and will
not have any impact on pre-existing
obligations and support mechanisms
with respect to the existing service area.
13. Just and Reasonable. 47 U.S.C.
10(a)(1) requires that the Commission
consider whether enforcement of the
provisions from which forbearance is
sought is necessary to ensure that the
charges, practices, classifications, or
regulations are just and reasonable and
not unjustly or unreasonably
discriminatory. The Commission
concludes that compliance with the
service area conformance requirement of
47 U.S.C. 214(e)(5) and 47 CFR
54.207(b) is not necessary to ensure that
the charges, practices, and
classifications of carriers conditionally
designated as ETCs in areas eligible for
Mobility Fund Phase I support for
purposes of participation in Mobility
Fund Phase I auction and receiving such
support are just and reasonable and not
unjustly or unreasonably
discriminatory. The Commission finds
that the three factors traditionally taken
into account by the Commission and the
states when reviewing a potential
redefinition of a rural service area
pursuant to 47 U.S.C. 214(e)(5) no
longer apply in the context of
conditionally designating ETCs in areas
eligible for Mobility Fund Phase I
support for purposes of participation in
the Mobility Fund Phase I auction.
Forbearance from the service area
conformance requirement would not
prevent the Commission from enforcing
47 U.S.C. 201 or 202, which require all
carriers to charge just, reasonable, and
non-discriminatory rates. Moreover, all
ETCs—whether rural ETCs or carriers
designated as ETCs in areas eligible for
Mobility Fund Phase I support for
purposes of participation in Mobility
Fund Phase I auction and receiving such
support—will continue to be subject to
the requirements of the Act and of the
Commission’s rules that consumers
have access to reasonably comparable
services at reasonably comparable rates.
In fact, the expansion of current and
next generation wireless networks
supported by Mobility Fund Phase I will
expand the choice of
telecommunications services for
consumers in the relevant area. The
resulting competition is likely to help
ensure just, reasonable, and
nondiscriminatory offerings of services.
For these reasons, the Commission finds
PO 00000
Frm 00053
Fmt 4700
Sfmt 4700
39437
that the first prong of 47 U.S.C. 10(a) is
met.
14. Consumer Protection. 47 U.S.C.
10(a)(2) requires that the Commission
consider whether applying the service
area conformance requirement to a
mobile wireless voice service provider
that seeks a conditional ETC designation
in areas eligible for Mobility Fund Phase
I support is necessary for the protection
of consumers. Forbearance from the
conformance requirement in these
limited circumstances will not harm
consumers currently served by the rural
telephone companies in the relevant
service areas. To the contrary, these
consumers will benefit from the use of
Mobility Fund Phase I support to
expand current and next generation
mobile services. Indeed, as the
Commission has noted, the national goal
of ubiquitous mobile broadband
depends in part on offering targeted and
efficient support for mobile services
through the Mobility Fund. Finally,
every ETC, including any party
receiving Mobility Fund Phase I
support, must certify that it will satisfy
applicable consumer protection and
service quality standards in its service
area. For these reasons, the Commission
finds that the second prong of 47 U.S.C.
10(a) is met.
15. Public Interest. 47 U.S.C. 10(a)(3)
requires that the Commission consider
whether applying the service area
conformance requirement to a facilitiesbased mobile wireless carrier that seeks
conditional ETC designation in areas
eligible for Mobility Fund Phase I
support in order to participate in
Mobility Fund Phase I and receive such
support is in the public interest. Absent
forbearance, the Commission finds that
parties seeking support may be required
to take on unsupported ETC obligations
in portions of rural carriers’ study
areas—areas that may not be eligible for
support or for which they may not win
support—and that this is likely to
discourage participation in Mobility
Fund Phase I. Geographic eligibility for
Mobility Fund Phase I support is based
on whether specific census blocks are
presently served by current or next
generation wireless networks, a
definition that is unrelated to the
boundaries of rural carrier service areas.
Moreover, the Commission’s current
rules to redefine service areas require
concurring decisions by both the
Commission and the related state
commission, a process not likely to be
completed before parties seeking
Mobility Fund Phase I support will have
to apply to participate in Auction 901.
Hence, the Commission finds that
forbearing from the conformance
requirement will encourage
E:\FR\FM\03JYR1.SGM
03JYR1
sroberts on DSK5SPTVN1PROD with NOTICES
39438
Federal Register / Vol. 77, No. 128 / Tuesday, July 3, 2012 / Rules and Regulations
participation by assuring that
obligations of new ETCs will not extend
to portions of rural service areas for
which a new ETC may not receive
support. By providing this assurance,
the Commission reduces the cost of
auction participation, encourage lower
bids, and improve auction outcomes.
16. Enabling new ETC service areas to
be defined in a more targeted manner
for Mobility Fund Phase I is consistent
with the Commission’s approach of
targeting support to areas with a specific
need for the support, helps preserve
those efficiencies, and thus serves the
public interest. As set out in the USF/
ICC Transformation Order, Mobility
Fund Phase I support will be
determined by a competitive bidding
process in which ETCs will bid for the
support they need to serve a specific
area, rather than any larger area such as
an underlying rural telephone company
study area. This targeted and efficient
provision of support is critical to
furthering the public interest goal of
ubiquitous mobile service in a fiscally
responsible manner. To require Mobility
Fund Phase I support recipients to serve
a wider area runs counter to the
Commission’s recent and ongoing efforts
to serve the public interest by focusing
USF resources on defined areas of need.
17. The public interest benefits go
beyond efficiently expanding current
and next generation wireless networks
to expanding access to such services by
consumers. An ETC with a conditional
designation will have the obligations of
any other ETC receiving Mobility Fund
Phase I support for the areas in which
the condition is satisfied, including an
obligation to make available Lifeline
service to eligible for low income
consumers. Thus, an ETC expanding
advanced wireless networks to new
areas as part of the Mobility Fund Phase
I also will be making their networks
available to low-income consumers who
may qualify to receive reduced charges
for these next generation services.
18. In addition, the Commission finds
that in these limited circumstances
requiring conformance is not essential
to protect the ability of rural telephone
companies to continue to provide
service. Past concerns that an ETC
serving only a relatively low cost
portion of a rural carrier’s service area
might cream skim by receiving per line
support based on the rural carrier’s costs
of serving the entire area do not apply
to Mobility Fund Phase I support.
Unlike the legacy identical support rule,
under which a competitive ETC
received the same per-line support as an
incumbent calculated based on the
incumbent’s cost of serving its entire
service area, the amount of Mobility
VerDate Mar<15>2010
15:49 Jul 02, 2012
Jkt 226001
Fund Phase I support is not linked to
the support received by an overlapping
rural carrier but is determined by the
results of competitive bidding for
support. Consequently, cream skimming
concerns that arose under the identical
support rule are not relevant in
considering the conditional designation
of an ETC for purposes of seeking
Mobility Fund Phase I support.
Moreover, the Commission notes that it
decided in the USF/ICC Transformation
Order that universal service would
support both mobile and fixed services
in a given area. Consequently, the
Commission sees no inherent conflict
between a mobile provider receiving
support to offer previously unavailable
service in a portion of a rural telephone
company’s study area and the rural
telephone company continuing to
provide its pre-existing service.
19. For similar reasons, the
Commission concludes that forbearance
in these circumstances will not harm
competitive market conditions. The
Commission expects forbearance to
enhance competition by introducing
new service providers and not to
eliminate any existing market
participants or to introduce concerns
about cream skimming.
20. The Commission further notes that
forbearance from the conformance
requirement and redefinition process for
these limited purposes should not affect
rural carriers’ abilities to serve the entire
rural service territories. Moreover, the
Act contains safeguards to address any
such potential concerns. The Act
already requires designating
commissions to affirmatively determine
that designating a carrier as an ETC
within a rural service area is in the
public interest, and this is not affected
by this grant of forbearance.
21. Finally, forbearance in these
limited circumstances preserves the role
of states in ETC designation. State
commissions are still required to
consider the public interest,
convenience and necessity of
designating an ETC in a rural area
already served by a rural telephone
company. The Commission action does
not disturb the roles of state
commissions and of the Commission in
the ETC designation process or in the
redefinition process in other
circumstances when redefinition is
required.
IV. Procedural Matters
A. Paperwork Reduction Act
22. The CAF/ICC Second Report and
Order does not contain new or modified
information collection(s) subject to the
Paperwork Reduction Act of 1995
PO 00000
Frm 00054
Fmt 4700
Sfmt 4700
(PRA), Public Law 104–13. In addition,
therefore, it does not contain any new
or modified information collection
burden for small business concerns with
fewer than 25 employees, pursuant to
the Small Business Paperwork Relief
Act of 2002, Public Law 107–198, see
44 U.S.C. 3506(c)(4).
B. Final Regulatory Flexibility Act
Certification
23. The Regulatory Flexibility Act
(RFA) requires that agencies prepare a
regulatory flexibility analysis for noticeand-comment rulemaking proceedings,
unless the agency certifies that the rule
will not have a significant economic
impact on a substantial number of small
entities. The RFA generally defines
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 which: (1) Is
independently owned and operated; (2)
is not dominant in its field of operation;
and (3) satisfies any additional criteria
established by the Small Business
Administration (SBA).
24. The Commission certifies that
forbearance decision in the CAF/ICC
Second Report and Order will not have
a significant economic impact on a
substantial number of small entities. In
the CAF/ICC Second Report and Order,
the Commission eases the regulatory
compliance burden on ETCs by
forbearing from the requirement that the
service area of an ETC conform to the
service area of any rural telephone
company serving the same area. The
CAF/ICC Second Report and Order does
not modify any of the Commission’s
reporting requirements. The
Commission will send a copy of the
CAF/ICC Second Report and Order,
including the certification, to the Chief
Counsel for Advocacy of the Small
Business Administration.
C. Congressional Review Act
25. The Commission will send a copy
of the CAF/ICC Second Report and
Order to Congress and the Government
Accountability Office pursuant to the
Congressional Review Act.
D. Effective Date
26. The Commission concludes that
good cause exists to make the
forbearance adopted in the CAF/ICC
Second Report and Order effective
immediately upon publication in the
Federal Register pursuant to 47 U.S.C.
553(d)(3) of the Administrative
Procedure Act and 47 CFR 1.103(a) and
E:\FR\FM\03JYR1.SGM
03JYR1
Federal Register / Vol. 77, No. 128 / Tuesday, July 3, 2012 / Rules and Regulations
1.427(b). The grant of forbearance
applies only to those seeking
conditional ETC designation for areas
eligible for Mobility Fund Phase I
support in order to participate in the
Mobility Fund Phase I auction, and,
given the short time remaining before
the July 11, 2012, deadline for filing an
auction application, may promote wider
participation and generate more
competitive bids. In turn, this increases
the chances that the Mobility Fund
Phase I budget will provide greater
benefits in the form of expanded
coverage of mobile voice and broadband
service. The Commission finds there is
good cause to make the changes it
implements with the CAF/ICC Second
Report and Order effective upon
Federal Register publication, without
the usual 30-day period.
V. Ordering Clause
27. Accordingly, it is ordered that,
pursuant to the authority contained in
47 U.S.C. 4(i), 4(j), 10, 214, and 254 as
well as 47 U.S.C. 154(i), 154(j), 160, 214,
254, the Commission forbears from
applying the conformance requirement
of 47 U.S.C. 214(e)(5) and 47 CFR
54.207(b) to petitions for conditional
designation as an eligible
telecommunications carrier in areas
eligible for Mobility Fund Phase I
support in order to participate in the
Mobility Fund Phase I auction and
receive such support to the extent
discussed herein.
28. It is further ordered that, pursuant
to 5 U.S.C. 553(d) and 47 CFR 1.103(a)
and 1.427(b) the order shall be effective
upon publication in the Federal
Register.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2012–16279 Filed 7–2–12; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 73
sroberts on DSK5SPTVN1PROD with NOTICES
[MM Docket Nos. 00–168 and 00–44; FCC
12–44]
Standardized and Enhanced
Disclosure Requirements for
Television Broadcast Licensee Public
Interest Obligations; Extension of the
Filing Requirement for Children’s
Television Programming Report (FCC
Form 398)
Federal Communications
Commission.
AGENCY:
VerDate Mar<15>2010
15:49 Jul 02, 2012
Jkt 226001
Final rule; announcement of
effective date.
ACTION:
In this document, the
Commission announces that the Office
of Management and Budget (OMB) has
approved, for a period of three years, the
information collection associated with
the Commission’s Enhanced Disclosure
Requirements, Second Report and Order
(‘‘Order’’), FCC 12–44. This notice is
consistent with the Order, which stated
that the Commission would publish a
document in the Federal Register
announcing the effective date of those
rules.
SUMMARY:
The amendments to 47 CFR
73.1212, 73.1943, 73.3526, 73.3527 and
73.3580, published at 77 FR 27631, May
11, 2012, are effective August 2, 2012.
FOR FURTHER INFORMATION CONTACT:
Cathy Williams on (202) 418–2918, or
email: cathy.williams@fcc.gov.
SUPPLEMENTARY INFORMATION: This
document announces that, on June 21,
2012, OMB approved, for a period of
three years, the information collection
requirements relating to the enhanced
disclosure requirement rules contained
in the Commission’s Order, FCC 12–44,
published at 77 FR 27631, May 11,
2012. The OMB Control Numbers are
3060–0174 and 3060–0214. The
Commission publishes this notice as an
announcement of the effective date of
the rules.
DATES:
Synopsis
As required by the Paperwork
Reduction Act of 1995 (44 U.S.C. 3507),
the FCC is notifying the public that it
received final OMB approval on June
21, 2012, for the information collection
requirements contained in the
modifications to the Commission’s rules
in 47 CFR part 73.
Under 5 CFR part 1320, an agency
may not conduct or sponsor a collection
of information unless it displays a
current, valid OMB Control Number.
No person shall be subject to any
penalty for failing to comply with a
collection of information subject to the
Paperwork Reduction Act that does not
display a current, valid OMB Control
Number. The OMB Control Numbers are
3060–0174 and 3060–0214.
The foregoing notice is required by
the Paperwork Reduction Act of 1995,
Public Law 104–13, October 1, 1995,
and 44 U.S.C. 3507.
The total annual reporting burdens
and costs for the respondents are as
follows:
OMB Control Number: 3060–0214.
OMB Approval Date: June 21, 2012.
OMB Expiration Date: June 30, 2015.
PO 00000
Frm 00055
Fmt 4700
Sfmt 4700
39439
Title: Sections 73.3526 and 73.3527,
Local Public Inspection Files; Sections
76.1701 and 73.1943, Political Files.
Respondents/Affected Parties:
Business or other for-profit entities; not
for-profit institutions; individuals or
households.
Number of Respondents and
Responses: 24,558 respondents; 59,056
responses.
Estimated Time per Response: 1 hour
to 104 hours.
Frequency of Response: On occasion
reporting requirement; Recordkeeping
requirement; Third party disclosure
requirement.
Obligation to Respond: Required to
obtain or retain benefits. The statutory
authority for this collection of
information is contained in 47 U.S.C.
151, 152, 154(i), 303, 307 and 308.
Total Annual Burden: 2,158,080
hours.
Total Annual Costs: $882,236.00.
Privacy Act Impact Assessment: The
FCC is preparing a PIA.
Nature and Extent of Confidentiality:
The FCC is preparing a system of
records, FCC/MB–2, ‘‘Broadcast Station
Public Inspection Files,’’ to cover the
personally identifiable information (PII)
that may be included in the broadcast
station public inspection files.
Respondents may request materials or
information submitted to the
Commission be withheld from public
inspection under 47 CFR 0.459 of the
Commission’s rules.
Needs and Uses: The Commission
received final approval of the
information collection requirements that
were adopted in FCC 12–44 and
contained in collection 3060–0214 from
the Office of Management and Budget
(OMB). On April 27, 2012, the
Commission released a Second Report
and Order, MB Docket Nos. 00–168 and
00–44; FCC 12–44. This Order adopted
information collection requirements that
support the Commission’s public file
rules that are codified at 47 CFR 73.3526
and 73.3527. 47 CFR 73.3526 and
73.3527 require that licensees and
permittees of commercial and
noncommercial AM, FM and TV
stations maintain a file for public
inspection at its main studio or at
another accessible location in its
community of license. The contents of
the file vary according to type of service
and status. The contents include, but are
not limited to, copies of certain
applications tendered for filing, a
statement concerning petitions to deny
filed against such applications, copies of
ownership reports, statements certifying
compliance with filing announcements
in connection with renewal
applications, a list of donors supporting
E:\FR\FM\03JYR1.SGM
03JYR1
Agencies
[Federal Register Volume 77, Number 128 (Tuesday, July 3, 2012)]
[Rules and Regulations]
[Pages 39435-39439]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-16279]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[WC Docket Nos. 10-90, 07-135, 05-337, 03-109; GN Docket No. 09-51; CC
Docket Nos. 01-92, 96-45; WT Docket No. 10-208; FCC 12-70]
Connect America Fund, A National Broadband Plan for Our Future,
Universal Service Reform--Mobility Fund
AGENCY: Federal Communications Commission.
ACTION: Final rule: limited forbearance.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
(Commission) adopts a limited forbearance from requiring that the
service area of an eligible telecommunications carrier (ETC) conform to
the service area of any rural telephone company serving the same area
for the Mobility Fund Phase I auction 901. This forbearance applies
only with respect to conditional ETC designations for participating in
Auction 901.
DATES: Effective July 3, 2012.
FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau,
Auctions and Spectrum Access Division: call Sayuri Rajapakse, Scott
Mackoul or Stephen Johnson at (202) 418-0660.
SUPPLEMENTARY INFORMATION: This is a summary of the CAF/ICC Second
Report and Order released on June 27, 2012. The CAF/ICC Second Report
and Order and related Commission documents may be purchased from the
Commission's duplicating contractor, Best Copy and Printing, Inc.
(BCPI), 445 12th Street SW., Room CY-B402, Washington, DC 20554,
telephone 202-488-5300, fax 202-488-5563, or you may contact BCPI at
its Web site: https://www.BCPIWEB.com. When ordering documents from
BCPI, please provide the appropriate FCC document number, for example,
FCC 12-70. The CAF/ICC Second Report and Order and related documents
also are available on the Internet at the Commission's Web site: https://wireless.fcc.gov or by using the search function for WT Docket No. 10-
208 on the Commission's Electronic Comment Filing System (ECFS) Web
page at https://www.fcc.gov/cgb/ecfs/.
I. Introduction
1. The Commission adopts a limited forbearance pursuant to section
10 of the Communications Act of 1934, as amended (the Act), 47 U.S.C.
160, from requiring that the service area of an eligible
telecommunications carrier (ETC) conform to the service area of any
rural telephone company serving the same area, pursuant to 47 U.S.C.
214(e)(5) and 47 CFR 54.207(b). In particular, this forbearance applies
only with respect to conditional ETC designations for participating in
the Mobility Fund Phase I auction, ETC designations conditioned on
receipt of Mobility Fund Phase I support. Such conditional ETC
designations, and thus this forbearance, are also limited to the
specific areas in which such an ETC becomes authorized to receive
Mobility Fund Phase I support.
2. The Commission concludes that forbearance in these limited
circumstances furthers the public interest, advancing the Act's and the
Commission's goals of promoting access to mobile service over current
and next generation wireless networks in areas currently without such
service by reducing barriers to participation in Phase I of the
Mobility Fund. The Commission finds that application of the service
area conformance requirements set forth in 47 U.S.C. 214(e)(5) and 47
CFR 54.207(b) in these limited circumstances is not necessary to ensure
that rates remain just and reasonable or to protect consumers. The
Commission emphasizes that the forbearance it is granting is limited to
petitioners seeking conditional designation as ETCs in areas eligible
for Mobility Fund Phase I support in order to participate in the
Mobility Fund Phase I auction and receive support. Parties petitioning
for designation as an ETC for this purpose must satisfy all of the
other statutory requirements applicable to ETCs under the Act. The
forbearance order does not apply with respect to petitions for
designation as an ETC for other purposes. In light of the requirement
that, with one exception for Tribal entities, an applicant for the
Mobility Fund Phase I auction, Auction 901, must be designated as an
ETC in every geographic area on which it wishes to bid by the time it
applies to participate and in light of the short time remaining before
the July 11, 2012 deadline for filing Auction 901 applications, the
Commission finds that case-by-case forbearance is not feasible and
grant blanket forbearance for this limited purpose.
II. Background
3. In the recent USF/ICC Transformation Order, 76 FR 73830,
November 29, 2011 and 76 FR 81562, December 28, 2011, the Commission
comprehensively reformed and modernized the universal service system to
ensure that robust, affordable voice and broadband service, both fixed
[[Page 39436]]
and mobile, are available to Americans throughout the nation. As part
of this comprehensive reform effort, the Commission adopted the goal of
ensuring universal availability of modern networks capable of providing
advanced mobile voice and broadband service. To further achievement of
that goal, the Commission created the Mobility Fund to ensure
availability of mobile broadband networks in areas where a private-
sector business case for those networks is lacking. In particular, the
Commission provided that in Phase I of the Mobility Fund, it would
award by reverse auction up to $300 million in one-time support to
immediately accelerate deployment of current and next generation
networks providing mobile voice and broadband services in areas not
presently covered by such networks.
4. Auction 901 is scheduled to take place on September 27, 2012,
and those wishing to participate must file an auction application by
July 11, 2012. The Wireless Telecommunications and the Wireline
Competition Bureaus (Bureaus) have identified, pursuant to the
Commission's criteria, particular census blocks that are eligible for
Mobility Fund Phase I support in Auction 901. In Auction 901,
applicants will bid for the amount of support they need to meet the
Mobility Fund Phase I service and other public interest obligations in
the eligible census blocks covered by the geographic area on which they
bid. Applicants, except for Tribally-owned and controlled entities,
must be designated as ETCs in the areas on which they wish to bid prior
to filing their auction applications. The designation may be
conditional subject to the receipt of Mobility Fund Phase I support.
The Commission currently has pending three petitions for conditional
designation as an ETC for purposes of participating in Auction 901.
5. Congress directed the Commission to establish policies to help
ensure that quality services are available at just, reasonable, and
affordable rates and access to advanced telecommunications and
information services are provided in all regions of the Nation. The
Commission's Mobility Fund Phase I will help achieve this goal by
providing support for the expansion of current and next generation
wireless networks in areas currently unserved by such networks. 47
U.S.C. 254(e) provides that only an entity designated as an eligible
telecommunications carrier shall be eligible for universal service
high-cost and low-income support. To become an ETC, a carrier must
offer and advertise the services supported by the federal universal
service support mechanisms throughout its designated service area.
6. The Act and the Commission's rules define the term service area
and how it is established for each ETC. An ETC's service area is a
geographic area within which an ETC has universal service obligations
and may receive universal service support. A carrier seeking to become
an ETC typically requests designation in a specific service area, but
it is the commission designating that carrier that establishes the
ETC's service area. When a competitive carrier seeks to serve an area
already served by a rural telephone company, 47 U.S.C. 214(e)(5)
requires that the competitive ETC's service area must conform to the
rural telephone company's service area. Accordingly, if a commission
wishes to designate a competitive ETC for an area that differs from a
rural telephone company's existing service area, that rural service
area must first be redefined under the process set forth under the Act.
7. The Act defines the service area of each rural telephone
company's to be that company's study area unless and until the
Commission and the States, after taking into account recommendations of
a Federal-State Joint Board establish a different definition of service
area for such company. The Commission has interpreted this language to
mean that neither the Commission nor the states may act alone to alter
the definition of service areas served by rural carriers. In reviewing
a potential redefinition of a rural service area in evaluating a
request for ETC designation, the Commission and the states have
traditionally taken into account the three factors recommended by the
Federal-State Joint Board on Universal Service: Cream skimming, the
Act's special treatment of rural telephone companies, and the
administrative burdens of redefinition. The Commission's rules set
forth the procedures for considering redefinition petitions and allow
either the state commission or the Commission to propose to redefine a
rural telephone company's service area. A proposed redefinition,
however, does not take effect until the Commission and the appropriate
state commission agrees upon a new definition.
8. In the Mobility Fund NPRM, 75 FR 67060, November 1, 2010, the
Commission sought comment generally on the ETC designation requirements
of 47 U.S.C. 214(e) and on how best to interpret the provisions of that
section so as to achieve the objectives of the Mobility Fund. A
commenter suggested that the Commission should forbear altogether from
the requirements of 47 U.S.C. 214(e) for purposes of participating in
the Mobility Fund. The same commenter also noted that the service area
conformance requirement of 47 U.S.C. 214(e)(5) could create uncertainty
for potential Mobility Fund applicants and discourage participation,
and suggested that the Commission take steps to prevent this from
happening. Another commenter suggested that the Commission streamline
the process of ETC designation to facilitate participation in the
Mobility Fund, making the ETC designation process part of the
application for Mobility Fund support, such that designation would
occur upon award of support by the Commission. That commenter filed a
petition for reconsideration of the USF/ICC Transformation Order that
proposed, for those seeking Mobility Fund Phase I support, blanket
forbearance from the requirement that a competitive ETC's service area
conform to any underlying rural telephone carrier's study area.
III. Discussion
9. The Act allows the Commission to forbear from applying any
requirement of the Act or of its regulations to a telecommunications
carrier if the Commission determines that: (1) Enforcement of the
requirement is not necessary to ensure that the charges, practices,
classifications, or regulations by, for, or in connection with that
telecommunications carrier are just and reasonable and are not unjustly
or unreasonably discriminatory; (2) enforcement of that requirement is
not necessary for the protection of consumers; and (3) forbearance from
applying that requirement is consistent with the public interest.
10. The Commission considers whether it should forbear from
applying 47 U.S.C. 214(e)(5) service area conformance requirement to
parties petitioning for ETC conditional designation in areas eligible
for Mobility Fund Phase I support in order to participate in the
Mobility Fund Phase I auction and receive such support. The Commission
concludes that forbearance is appropriate and in the public interest
under these limited circumstances. Accordingly, for the limited purpose
of conditional designation as an ETC in areas eligible for Mobility
Fund Phase I support in order to participate in the Mobility Fund Phase
I auction, the Commission forbears from applying 47 U.S.C. 214(e)(5)
and 47 CFR 54.207(b) insofar as those sections require that the service
area of such an ETC conform to the service area of any rural telephone
company. The Commission notes that forbearing from the conformance
[[Page 39437]]
requirements eliminates the need for redefinition of any rural
telephone company service areas in the context of Mobility Fund Phase
I. The Commission emphasizes that this decision does not change the
requirements that apply if a party petitions to be an ETC for other
purposes in part of a service area served by a rural telephone company.
11. The Commission concludes that blanket forbearance from the
service area conformance requirement is warranted in these limited
circumstances. The Mobility Fund Phase I rules require that most
applicants must be designated as ETCs in every geographic area on which
they wish to bid for support, prior to filing an Auction 901
application. Those rules also provide that a conditional designation is
sufficient to meet the requirement, i.e., a designation effective only
for the areas, if any, in which the ETC becomes authorized to receive
Mobility Fund Phase I support. The Commission finds that case-by-case
forbearance is not feasible in the short time available before the
filing deadline.
12. The Commission takes this action after considering the record
it received in response to the Mobility Fund NPRM, where the Commission
sought comment on how to assure that the provisions of 47 U.S.C. 214(e)
would align with the objectives of this new mechanism for providing
high-cost universal service support. The record identified the
possibility that the service area provisions of 47 U.S.C. 214(e),
including the service area conformance requirement of that section
could discourage participation in the Mobility Fund Phase I auction. By
granting blanket forbearance of the conformance requirement for the
limited purpose of petitions for conditional designation to participate
in the auction, the Commission seeks to prevent that requirement from
creating an obstacle to participation by any carrier considering it.
Removing such disincentives to participation may increase competition
in the auction resulting in lower bids for support and enabling greater
coverage within the Mobility Fund Phase I budget. The Commission notes
that by granting forbearance in these limited circumstances, it is
allowing new ETCs, and those existing ETCs that wish to conditionally
expand their service areas for Auction 901, to match their specific new
and additional service areas to the geographic area for which they will
incur obligations under Mobility Fund Phase I. The Commission does not
address relinquishment or redefinition with respect to the service
areas of existing ETCs with respect to new targeted support mechanisms
other than Mobility Fund Phase I. To the extent that an existing ETC
seeks Mobility Fund Phase I support for areas within its existing
service area, the new obligations will apply only to the portion of
their existing service area for which they win such support and will
not have any impact on pre-existing obligations and support mechanisms
with respect to the existing service area.
13. Just and Reasonable. 47 U.S.C. 10(a)(1) requires that the
Commission consider whether enforcement of the provisions from which
forbearance is sought is necessary to ensure that the charges,
practices, classifications, or regulations are just and reasonable and
not unjustly or unreasonably discriminatory. The Commission concludes
that compliance with the service area conformance requirement of 47
U.S.C. 214(e)(5) and 47 CFR 54.207(b) is not necessary to ensure that
the charges, practices, and classifications of carriers conditionally
designated as ETCs in areas eligible for Mobility Fund Phase I support
for purposes of participation in Mobility Fund Phase I auction and
receiving such support are just and reasonable and not unjustly or
unreasonably discriminatory. The Commission finds that the three
factors traditionally taken into account by the Commission and the
states when reviewing a potential redefinition of a rural service area
pursuant to 47 U.S.C. 214(e)(5) no longer apply in the context of
conditionally designating ETCs in areas eligible for Mobility Fund
Phase I support for purposes of participation in the Mobility Fund
Phase I auction. Forbearance from the service area conformance
requirement would not prevent the Commission from enforcing 47 U.S.C.
201 or 202, which require all carriers to charge just, reasonable, and
non-discriminatory rates. Moreover, all ETCs--whether rural ETCs or
carriers designated as ETCs in areas eligible for Mobility Fund Phase I
support for purposes of participation in Mobility Fund Phase I auction
and receiving such support--will continue to be subject to the
requirements of the Act and of the Commission's rules that consumers
have access to reasonably comparable services at reasonably comparable
rates. In fact, the expansion of current and next generation wireless
networks supported by Mobility Fund Phase I will expand the choice of
telecommunications services for consumers in the relevant area. The
resulting competition is likely to help ensure just, reasonable, and
nondiscriminatory offerings of services. For these reasons, the
Commission finds that the first prong of 47 U.S.C. 10(a) is met.
14. Consumer Protection. 47 U.S.C. 10(a)(2) requires that the
Commission consider whether applying the service area conformance
requirement to a mobile wireless voice service provider that seeks a
conditional ETC designation in areas eligible for Mobility Fund Phase I
support is necessary for the protection of consumers. Forbearance from
the conformance requirement in these limited circumstances will not
harm consumers currently served by the rural telephone companies in the
relevant service areas. To the contrary, these consumers will benefit
from the use of Mobility Fund Phase I support to expand current and
next generation mobile services. Indeed, as the Commission has noted,
the national goal of ubiquitous mobile broadband depends in part on
offering targeted and efficient support for mobile services through the
Mobility Fund. Finally, every ETC, including any party receiving
Mobility Fund Phase I support, must certify that it will satisfy
applicable consumer protection and service quality standards in its
service area. For these reasons, the Commission finds that the second
prong of 47 U.S.C. 10(a) is met.
15. Public Interest. 47 U.S.C. 10(a)(3) requires that the
Commission consider whether applying the service area conformance
requirement to a facilities-based mobile wireless carrier that seeks
conditional ETC designation in areas eligible for Mobility Fund Phase I
support in order to participate in Mobility Fund Phase I and receive
such support is in the public interest. Absent forbearance, the
Commission finds that parties seeking support may be required to take
on unsupported ETC obligations in portions of rural carriers' study
areas--areas that may not be eligible for support or for which they may
not win support--and that this is likely to discourage participation in
Mobility Fund Phase I. Geographic eligibility for Mobility Fund Phase I
support is based on whether specific census blocks are presently served
by current or next generation wireless networks, a definition that is
unrelated to the boundaries of rural carrier service areas. Moreover,
the Commission's current rules to redefine service areas require
concurring decisions by both the Commission and the related state
commission, a process not likely to be completed before parties seeking
Mobility Fund Phase I support will have to apply to participate in
Auction 901. Hence, the Commission finds that forbearing from the
conformance requirement will encourage
[[Page 39438]]
participation by assuring that obligations of new ETCs will not extend
to portions of rural service areas for which a new ETC may not receive
support. By providing this assurance, the Commission reduces the cost
of auction participation, encourage lower bids, and improve auction
outcomes.
16. Enabling new ETC service areas to be defined in a more targeted
manner for Mobility Fund Phase I is consistent with the Commission's
approach of targeting support to areas with a specific need for the
support, helps preserve those efficiencies, and thus serves the public
interest. As set out in the USF/ICC Transformation Order, Mobility Fund
Phase I support will be determined by a competitive bidding process in
which ETCs will bid for the support they need to serve a specific area,
rather than any larger area such as an underlying rural telephone
company study area. This targeted and efficient provision of support is
critical to furthering the public interest goal of ubiquitous mobile
service in a fiscally responsible manner. To require Mobility Fund
Phase I support recipients to serve a wider area runs counter to the
Commission's recent and ongoing efforts to serve the public interest by
focusing USF resources on defined areas of need.
17. The public interest benefits go beyond efficiently expanding
current and next generation wireless networks to expanding access to
such services by consumers. An ETC with a conditional designation will
have the obligations of any other ETC receiving Mobility Fund Phase I
support for the areas in which the condition is satisfied, including an
obligation to make available Lifeline service to eligible for low
income consumers. Thus, an ETC expanding advanced wireless networks to
new areas as part of the Mobility Fund Phase I also will be making
their networks available to low-income consumers who may qualify to
receive reduced charges for these next generation services.
18. In addition, the Commission finds that in these limited
circumstances requiring conformance is not essential to protect the
ability of rural telephone companies to continue to provide service.
Past concerns that an ETC serving only a relatively low cost portion of
a rural carrier's service area might cream skim by receiving per line
support based on the rural carrier's costs of serving the entire area
do not apply to Mobility Fund Phase I support. Unlike the legacy
identical support rule, under which a competitive ETC received the same
per-line support as an incumbent calculated based on the incumbent's
cost of serving its entire service area, the amount of Mobility Fund
Phase I support is not linked to the support received by an overlapping
rural carrier but is determined by the results of competitive bidding
for support. Consequently, cream skimming concerns that arose under the
identical support rule are not relevant in considering the conditional
designation of an ETC for purposes of seeking Mobility Fund Phase I
support. Moreover, the Commission notes that it decided in the USF/ICC
Transformation Order that universal service would support both mobile
and fixed services in a given area. Consequently, the Commission sees
no inherent conflict between a mobile provider receiving support to
offer previously unavailable service in a portion of a rural telephone
company's study area and the rural telephone company continuing to
provide its pre-existing service.
19. For similar reasons, the Commission concludes that forbearance
in these circumstances will not harm competitive market conditions. The
Commission expects forbearance to enhance competition by introducing
new service providers and not to eliminate any existing market
participants or to introduce concerns about cream skimming.
20. The Commission further notes that forbearance from the
conformance requirement and redefinition process for these limited
purposes should not affect rural carriers' abilities to serve the
entire rural service territories. Moreover, the Act contains safeguards
to address any such potential concerns. The Act already requires
designating commissions to affirmatively determine that designating a
carrier as an ETC within a rural service area is in the public
interest, and this is not affected by this grant of forbearance.
21. Finally, forbearance in these limited circumstances preserves
the role of states in ETC designation. State commissions are still
required to consider the public interest, convenience and necessity of
designating an ETC in a rural area already served by a rural telephone
company. The Commission action does not disturb the roles of state
commissions and of the Commission in the ETC designation process or in
the redefinition process in other circumstances when redefinition is
required.
IV. Procedural Matters
A. Paperwork Reduction Act
22. The CAF/ICC Second Report and Order does not contain new or
modified information collection(s) subject to the Paperwork Reduction
Act of 1995 (PRA), Public Law 104-13. In addition, therefore, it does
not contain any new or modified information collection burden for small
business concerns with fewer than 25 employees, pursuant to the Small
Business Paperwork Relief Act of 2002, Public Law 107-198, see 44
U.S.C. 3506(c)(4).
B. Final Regulatory Flexibility Act Certification
23. The Regulatory Flexibility Act (RFA) requires that agencies
prepare a regulatory flexibility analysis for notice-and-comment
rulemaking proceedings, unless the agency certifies that the rule will
not have a significant economic impact on a substantial number of small
entities. The RFA generally defines 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 which: (1) Is
independently owned and operated; (2) is not dominant in its field of
operation; and (3) satisfies any additional criteria established by the
Small Business Administration (SBA).
24. The Commission certifies that forbearance decision in the CAF/
ICC Second Report and Order will not have a significant economic impact
on a substantial number of small entities. In the CAF/ICC Second Report
and Order, the Commission eases the regulatory compliance burden on
ETCs by forbearing from the requirement that the service area of an ETC
conform to the service area of any rural telephone company serving the
same area. The CAF/ICC Second Report and Order does not modify any of
the Commission's reporting requirements. The Commission will send a
copy of the CAF/ICC Second Report and Order, including the
certification, to the Chief Counsel for Advocacy of the Small Business
Administration.
C. Congressional Review Act
25. The Commission will send a copy of the CAF/ICC Second Report
and Order to Congress and the Government Accountability Office pursuant
to the Congressional Review Act.
D. Effective Date
26. The Commission concludes that good cause exists to make the
forbearance adopted in the CAF/ICC Second Report and Order effective
immediately upon publication in the Federal Register pursuant to 47
U.S.C. 553(d)(3) of the Administrative Procedure Act and 47 CFR
1.103(a) and
[[Page 39439]]
1.427(b). The grant of forbearance applies only to those seeking
conditional ETC designation for areas eligible for Mobility Fund Phase
I support in order to participate in the Mobility Fund Phase I auction,
and, given the short time remaining before the July 11, 2012, deadline
for filing an auction application, may promote wider participation and
generate more competitive bids. In turn, this increases the chances
that the Mobility Fund Phase I budget will provide greater benefits in
the form of expanded coverage of mobile voice and broadband service.
The Commission finds there is good cause to make the changes it
implements with the CAF/ICC Second Report and Order effective upon
Federal Register publication, without the usual 30-day period.
V. Ordering Clause
27. Accordingly, it is ordered that, pursuant to the authority
contained in 47 U.S.C. 4(i), 4(j), 10, 214, and 254 as well as 47
U.S.C. 154(i), 154(j), 160, 214, 254, the Commission forbears from
applying the conformance requirement of 47 U.S.C. 214(e)(5) and 47 CFR
54.207(b) to petitions for conditional designation as an eligible
telecommunications carrier in areas eligible for Mobility Fund Phase I
support in order to participate in the Mobility Fund Phase I auction
and receive such support to the extent discussed herein.
28. It is further ordered that, pursuant to 5 U.S.C. 553(d) and 47
CFR 1.103(a) and 1.427(b) the order shall be effective upon publication
in the Federal Register.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2012-16279 Filed 7-2-12; 8:45 am]
BILLING CODE 6712-01-P