Reporting Requirements for U.S. Providers of International Telecommunications Services, 15615-15624 [2013-05662]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 78, Number 48 (Tuesday, March 12, 2013)]
[Rules and Regulations]
[Pages 15615-15624]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-05662]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 43, and 63

[IB Docket No. 04-112; FCC 13-6]


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

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) eliminates unnecessary information, streamlines the filing 
of annual international traffic and revenue and circuit status reports, 
and modernizes the types of information it collects. The Commission 
found that the burdens of filing this information outweigh any benefit 
from the information. To simplify the collection of data on 
international telecommunications services, the Commission consolidated 
the traffic and revenue and circuit status reports into one rule and 
mandated a consolidated Filing Manual that will ensure that future 
changes to the reports will be coordinated. These actions are part of 
the Commission's review of its reporting requirements and are intended 
to remove unnecessary information collections and tailor its 
information collections to the current state of the international 
telecommunications market.

DATES: Effective April 11, 2013, except for Sec. Sec.  1.767(l)(2), 
43.61, 43.62, 43.82, 63.10(c)(2) and (4), 63.21(d) and 63.22(e), which 
contain information collection requirements that have not been approved 
by the Office of Management and Budget (OMB). The Commission will 
publish a document in the Federal Register announcing the effective 
date of those rule changes.

FOR FURTHER INFORMATION CONTACT: John Copes or David Krech, Policy 
Division, International Bureau, FCC, (202) 418-1460 or via the Internet 
at John.Copes@fcc.gov and David.Krech@fcc.gov.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second 
Report and Order, IB Docket No. 04-112, FCC 13-6, adopted January 9, 
2013, and released January 15, 2013. The full text of the Second Report 
and Order is available for inspection and copying during normal 
business hours in the FCC Reference Center, 445 12th Street, SW., 
Washington, DC 20554. The document also is available for download over 
the Internet at https://

[[Page 15616]]

transition.fcc.gov/Daily--Releases/Daily--Business/2013/db0125/FCC-13-
6A1.pdf. The complete text also may be purchased from the Commission's 
copy contractor, Best Copy and Printing, Inc. (BCPI), located in Room 
CY-B402, 445 12th Street SW., Washington, DC 20554. Customers may 
contact BCPI at its Web site: https://www.bcpiweb.com or call 1-800-378-
3160.

Summary of Second Report and Order

    1. In the Second Report and Order, the Federal Communications 
Commission (Commission), continues its comprehensive review of its 
international reporting requirements for entities providing 
international telecommunications services. The Commission's 
international reporting requirements consist of the annual 
international traffic and revenue report (currently found in 47 CFR 
43.61) and the annual international circuit status report (currently 
found in 47 CFR 43.82). The Commission adopted a number of changes that 
affect both such reports. The Commission also adopted a number of 
specific changes to the traffic and revenue report and changes to the 
circuit status report.

Changes Affecting Both Reports

    2. The Commission decided to consolidate both of the international 
reports into 47 CFR 43.62. The Commission also decided to consolidate 
the current separate filing manuals for each report into one 
consolidated Filing Manual. The Commission determined that having one 
consolidated rule and one consolidated filing manual for both reports 
would make it easier for entities required to file on or both of the 
reports to file their data. To this end, the Commission directed the 
International Bureau to issue and maintain a consolidated Filing Manual 
that would provide instructions to filing entities for preparing and 
submitting both reports. The Commission determined that having a single 
Filing Manual, with a single set of definitions would make it easier 
for the Bureau to keep the instructions for both reports consistent 
with each other. The Commission, however, did not adopt its proposal to 
consolidate the current separate filing dates for the two reports. 
Rather, it decided to retain the current separate filing dates.
    3. The Commission decided to require each entity that files a 
traffic and revenue report or a circuit status report also to file each 
year a Registration Form that elicits basic information about the 
entity such as company name, address, contact information and a list of 
any authorizations under section 214 of the Communications Act that the 
entity may hold. Additionally, the Commission requires any entity that 
files a traffic and revenue report also to file a Services Checklist 
under which the entity would check a series of boxes to provide basic 
information about its operations during the previous year, such as 
whether the entity provided service in that year, and which would 
direct the entity as to which schedules it is required to file. The 
Commission determined that the Registration Form and Services Checklist 
would allow the Commission to determine which carriers are providing 
service and to keep its data base updated.
    4. To simplify the filing of traffic and revenue and circuit status 
reports, the Commission will allow filing entities to employ 
statistical sampling and other estimation techniques where actual 
counts of data elements are not possible. Finally, the Commission 
streamlines the procedure for requesting confidential treatment of 
their traffic and revenue and circuit status reports under 47 CFR 0.459 
by allowing them to check a box.

Changes Affecting the Traffic and Revenue Report

    5. The Commission simplified the traffic and revenue report by 
eliminating several current requirements that filing entities must 
report. The traffic and revenue reports collect information on four 
classes of international telecommunications services: (1) International 
message telephone service (IMTS); (2) IMTS resale; (3) international 
private line service; and (4) international miscellaneous services. The 
Commission made changes to the reporting of each class of service.
    6. IMTS. The Commission eliminated several requirements that will 
make it simpler for filling entities to prepare and submit the traffic 
and revenue report for IMTS. Additionally, the Commission modernized 
the IMTS information that filing entities must report to make such 
information more relevant to current conditions in the IMTS market. 
Finally, the Commission requires certain entities that provide an IMTS-
like service, voice over internet protocol (VoIP), also to file the 
traffic and revenue report. First, the Commission eliminates the need 
for filing entities to report the number of IMTS messages they carry or 
regional totals for their IMTS traffic. The Commission also allows 
filing entities to include their country-beyond and country-direct 
traffic in their world total traffic, rather than report it for each 
route as they currently do. The Commission replaced the current 
detailed billing codes under which carriers now report their IMTS 
traffic and revenues with a set of simple filing schedules. Second, to 
modernize the information filing entities report, the Commission 
requires those entities to break down their world-total IMTS traffic 
and revenues by customer class and routing arrangements. That is, the 
Commission requires filing entities to break down their IMTS revenues 
into three customer classes: residential and mass market customers; 
business and government customers; and other carriers. The Commission 
requires filing entities to disaggregate their IMTS minutes and revenue 
payouts between traffic they terminate on foreign fixed landline 
networks and those terminated on foreign mobile networks. Finally, the 
Commission required providers of an IMTS-like service, called voice 
over internet protocol (VoIP) that is interconnected to the public 
switched telephone network, also to file the IMTS portion of the 
traffic and revenue report. The Commission noted that, while the 
providers of these services are not classified as common carriers, 
customers view the service as a substitute for IMTS. The Commission 
concluded that recent declines in IMTS traffic are attributable to 
customers' switching to interconnected VoIP and that, without 
information on such services, it would not have an adequate view of the 
international voice market.
    7. IMTS Resale. The Commission a $5 million revenue threshold for 
the reporting of international resale IMTS traffic (the provision of 
IMTS by purchasing IMTS from another carrier and selling it to the 
reseller's customers). With respect to resale IMTS the threshold will 
eliminate the need for 1,000 small carriers to file a report.
    8. International Private Line Service. The Commission eliminated 
the current requirement that filing entities disaggregate their private 
line services (the provision of channel of communications, usually on a 
monthly leased basis, into six categories based on speed, allowing them 
instead to report their private line traffic and services provided over 
resold private lines only on a world-total basis. The Commission also 
eliminated the requirement for facilities-based carriers to report 
those lines on a route-by-route basis, allowing them to report them 
only on a world-total basis.
    9. International Data and Miscellaneous Services. The Commission 
adopted its proposal to allow carriers that provide certain classes of 
international data services to include those services in the category 
of international miscellaneous services, rather than with their private 
line

[[Page 15617]]

services as they now do. These services, referred to as virtual private 
lines, consist of offering customers the use of a carrier's network for 
a stated period. The Commission concluded that these services closely 
resemble various new data services that carriers have recently 
introduced. The Commission also adopted its proposal to allow filing 
entities to report all their international miscellaneous services on a 
world-total basis, rather than route by route, as they now report such 
services. Finally, the Commission adopted a $ 5 million revenue 
threshold below which a provider of an international miscellaneous 
service need not report its traffic or revenues for that service.

Changes Affecting the Circuit Status Report

    10. The Commission adopted a number of changes to simplify the 
circuit status report that common carriers, and some non-common carrier 
providers of international satellite transmission facilities, currently 
file each year. The circuit status report requires filing entities to 
provide information on the capacity and use of their international 
transmission circuits. The Commission simplified the circuit status 
report by eliminating the current requirement that carriers report 
their circuits on a route-by-route basis, allowing them to report them 
on a world-total basis, instead. The Commission also eliminated the 
requirement that carriers report the number of their idle circuits or 
the destination of the circuits. Rather, it will require filing 
entities to report only their total active 64 kilobit per second (KBpS) 
equivalent circuits. With respect to non-common carrier providers of 
international satellite networks, the Commission similarly will require 
such providers similarly to provide information only on their active 64 
KBpS circuits. The Commission concluded that this would not be a burden 
on such entities, because they must file the same information when they 
pay their annual regulatory fees. With respect to submarine cable 
systems, the Commission will require both common carrier and non-common 
carriers providers of such circuits to report only the capacity of 
their cables. Such providers will no longer be required to report the 
number of 64 KBpS circuits on their facilities or the destination to 
which those circuits are sued. Rather, the Commission will require 
filing entities to report, as of December 31 of the previous year, the 
capacity of their cables in STM-1 (Synchronous Transport Module level 
1) units, which is now the standard commercial unit for the sale or 
leasing of cable capacity. The Commission will also require filing 
entities to report their capacity in terms of the ownership interest 
(ownership, indefeasible right of use, or an inter-carrier lease). 
Additionally, the Commission will require filing entities to report the 
planned capacity of new cables in gigabit per second (GBpS) units.

Paperwork Reduction Act of 1995 Analysis

    11. This Second Report and Order adopts new or revised information 
collection requirements, subject to the Paperwork Reduction Act of 1995 
(PRA), Public Law 104-13. These information collection requirements 
will be submitted to the Office of Management and Budget (OMB) for 
review under Section 3507(d) of the PRA. The Commission will publish a 
separate notice in the Federal Register inviting comment on the new or 
revised information collection requirement(s) adopted in this document. 
The requirement(s) will not go into effect until OMB has approved it 
and the Commission has published a notice announcing the effective date 
of the information collection requirement(s). In addition, we note that 
pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 
107-198, see 44 U.S.C. 3506(c)(4), we previously sought specific 
comment on how the Commission might further reduce the information 
collection burden for small business concerns with fewer than 25 
employees.

Final Regulatory Flexibility Analysis

    12. As required by the Regulatory Flexibility Act, as amended 
(RFA),\1\ the Federal Communications Commission (Commission) included 
an Initial Regulatory Flexibility Analysis (IRFA) concerning the 
possible significant economic impact on a substantial number of small 
entities of the policies and rules proposed in the Further Notice of 
Proposed Rulemaking (NPRM) in this proceeding.\2\ The Commission sought 
written public comment on the proposals in the FNPRM, including comment 
on the IRFA. This Final Regulatory Flexibility Analysis (FRFA) 
addresses the policies and rules that the Commission adopted in the 
Second Report and Order in this proceeding. This Second Report and 
Order retains the annual Traffic and Revenue Report and the annual 
Circuit Status Report. The Second Report and Order adopts some 
measures, as described below, to simplify compliance with the reporting 
requirements but generally does not alter either report. The Commission 
considered a number of proposals to streamline the reports and to 
improve the information that carriers will provide in the Further 
Notice of Proposed Rulemaking portion of this proceeding. This FRFA 
conforms to the RFA.
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    \1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA), Pub. L. 104-121, Title II, 110 Stat. 857 (1996).
    \2\ Reporting Requirements for U.S. Providers of International 
Telecommunications Services, Amendment of Part 43 of the 
Commission's Rules, IB Docket No. 04-112, Notice of Proposed 
Rulemaking, 19 FCC Rcd 6460 (2004). We note that we may not certify 
this proceeding under 5 U.S.C. 605, because our action will not have 
a significant economic effect on a substantial number of small 
entities (as discussed).
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A. Need for, and Objectives of, the Second Report and Order

    13. The Commission initiated this comprehensive review of the 
reporting requirements imposed on U.S. carriers providing international 
telecommunications services. The Commission believes that the decisions 
in the Second Report and Order will make it easier for carriers, both 
small and large, to provide the information required by the rules, 
while providing the Commission with information it needs but does not 
receive on an annual basis. In addition, section 11 of the 
Telecommunications Act of 1996 directs the Commission to undertake, in 
every even-numbered year beginning in 1998, a review of certain 
regulations issued under the Communications Act of 1934, as amended.\3\
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    \3\ Public Law 104-104, 110 Stat. 56 (1996).
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    14. The objective of the Second Report and Order in this proceeding 
is to improve the reporting requirements imposed on carriers providing 
international telecommunications services in the proposed Sec.  
43.62(a) and (b). Specifically, the Second Report and Order 
consolidates, simplifies, and revises the annual traffic and revenue 
reporting requirements and the circuit status reporting requirements. 
The rule also requires entities to file some additional information in 
the traffic and revenue report that they do not now file. Additionally, 
the rule relieves service providers with annual revenues less than $5 
million from filing Traffic and Revenue Reports for IMTS resale and the 
provision of international miscellaneous services. Finally, the rule 
requires all providers of international telecommunications services to 
file an annual Services Report that updates their contact information 
and indicates whether or not they provided service

[[Page 15618]]

during the preceding calendar year. The Second Report and Order also 
requires some additional entities that provide international 
telecommunications services to file the annual Traffic and Revenue 
Report and some additional entities that provide international 
facilities to file the annual Circuit Status Report.
    15. Section 43.61 requires all U.S. carriers providing 
international telecommunications services to file an annual report of 
their traffic and revenues. Under the consolidated Sec.  43.62(b), 
those same carriers and some additional entities that provide 
international telecommunications services will file similar traffic and 
revenue information. Section 43.82 requires all U.S. facilities-based 
carriers providing international telecommunications services to file an 
annual report on the status of their circuits. Under the new Sec.  
43.62(a), those same carriers and some other providers of international 
telecommunications facilities will file similar circuit status 
information. The information derived from the international Traffic and 
Revenue Report and Circuit Status Report is critical in understanding 
the international telecommunications market. These reports are the only 
source of information of this nature.

B. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA

    16. No comments were received on the IRFA analysis.

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

    17. The RFA directs agencies to provide a description of, and, 
where feasible, an estimate of the number of small entities that may be 
affected by the proposals, if adopted.\4\ The RFA generally defines the 
term ``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' \5\ In addition, the term ``small business'' has the 
same meaning as the term ``small business concern'' under the Small 
Business Act.\6\ A small business concern is one that: (1) Is 
independently owned and operated; (2) is not dominant in its field of 
operation; and (3) satisfies any additional criteria established by the 
Small Business Administration (SBA).\7\
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    \4\ 5 U.S.C. 603(b)(3).
    \5\ 5 U.S.C. 601(6).
    \6\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small-business concern'' in the Small Business Act, 15 U.S.C. 
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a 
small business applies ``unless an agency, after consultation with 
the Office of Advocacy of the Small Business Administration and 
after opportunity for public comment, establishes one or more 
definitions of such term which are appropriate to the activities of 
the agency and publishes such definition(s) in the Federal 
Register.''
    \7\ 15 U.S.C. 632.
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    18. The policies adopted in the Second Report and Order apply to 
entities providing international common carrier services pursuant to 
section 214 of the Communications Act; entities providing international 
wireless common carrier services under section 309 of the Act; entities 
providing common carrier satellite services under section 309 of the 
Act; and entities licensed to construct and operate submarine cables 
under the Cable Landing License Act. The Commission has not developed a 
small business size standard directed specifically toward these 
entities. As described below, such entities fit within larger 
categories for which the SBA has developed size standards.
1. Traffic and Revenue Report
    19. The policies adopted in the Second Report and Order apply only 
to entities providing international common carrier services pursuant to 
section 214 of the Communications Act; entities that operate a 
telecommunications ``spot market'' that themselves carry international 
traffic; entities providing domestic or international wireless common 
carrier services under section 309 of the Act; entities providing 
common carrier satellite facilities under section 309 of the Act; 
entities licensed to construct and operate submarine cables under the 
Cable Landing License Act on a common carrier basis; and entities that 
provide international terrestrial telecommunications facilities on a 
common carrier basis (including incumbent local exchange carriers that 
offer such facilities). At present, carriers that provide international 
telecommunications services are required to file the annual traffic and 
revenue report. The requires entities providing VoIP service 
interconnected with the public switched telephone network also to file 
the Traffic and Revenue Report. The Second Report and Order also 
requires all filing entities file a Services Report with information 
about the filing entity--such as address, phone number, email address, 
and the international section 214 authorizations held by the carrier. 
Further, the Second Report and Order adopts a number of changes that 
would simplify the Traffic and Revenue Report, as well as requiring 
some new information.
    20. The entities that the Second Report and Order proposes to 
require to file the Traffic and Revenue Report are a mixture of both 
large and small entities. The Commission has not developed a small 
business size standard directed specifically toward these entities. 
However, as described below, these entities fit into larger categories 
for which the SBA has developed size standards that provide these 
facilities or services.
    21. Facilities-based Carriers. Facilities-based providers of 
international telecommunications services would fall into the larger 
category of interexchange carriers. Neither the Commission nor the SBA 
has developed a small business size standard specifically for providers 
of interexchange services. The appropriate size standard under SBA 
rules is for the category Wired Telecommunications Carriers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees.\8\ Census Bureau data for 2007, which now supersede data 
from the 2002 Census, show that there were 3,188 firms in this category 
that operated for the entire year. Of this total, 3,144 had employment 
of 999 or fewer, and 44 firms had had employment of 1,000 employees or 
more. Thus under this category and the associated small business size 
standard, the majority of these Interexchange carriers can be 
considered small entities.\9\ According to Commission data, 359 
companies reported that their primary telecommunications service 
activity was the provision of interexchange services.\10\ Of these 359 
companies, an estimated 317 have 1,500 or fewer employees and 42 have 
more than 1,500 employees.\11\ Consequently, the Commission estimates 
that the majority of interexchange service providers are small entities 
that may be affected by rules adopted in the Second Report and Order.
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    \8\ 13 CFR 121.201, NAICS code 517110.
    \9\ U.S. Census Bureau, American FactFinder, 2007 Economic 
Census, https://factfinder.census.gov, (find ``Economic Census'' and 
choose ``get data.'' Then, under ``Economic Census data sets by 
sector * * *,'' choose ``Information.'' Under ``Subject Series,'' 
choose ``EC0751SSSZ5: Employment Size of Firms for the US: 2007.'' 
Click ``Next'' and find data related to NAICS code 517110 in the 
left column for ``Wired telecommunications carriers'') (last visited 
March 2, 2011).
    \10\ See Trends in Telephone Service at Table 5.3.
    \11\ See id.
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    22. In the 2010 annual traffic and revenue report, 31 facilities-
based and facilities-resale carriers reported approximately $4.0 
billion in revenues from international message telephone service 
(IMTS). Of these, three reported IMTS revenues of more than $1 billion,

[[Page 15619]]

six reported IMTS revenues of more than $100 million, nine reported 
IMTS revenues of more than $50 million, 19 reported IMTS revenues of 
more than $10 million, 23 reported IMTS revenues of more than $5 
million, and 26 reported IMTS revenues of more than $1 million. Based 
solely on their IMTS revenues the majority of these carriers would be 
considered non-small entities under the SBA definition.\12\
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    \12\ See 13 CFR 121.201, NAICS Code at Subsector 517--
Telecommunications.
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    23. The 2010 traffic and revenue report also shows that 46 
facilities-based and facilities-resale carriers (including 13 who also 
reported IMTS revenues) reported $515 million for international private 
line services; of which one reported private line revenues of more than 
$50 million, 11 reported private line revenues of more than $10 
million, 31 reported revenues of more than $1 million, 33 reported 
private line revenues of more than $500,000; 39 reported revenues of 
more than $100,000, while one reported revenues of less than $10,000.
    24. The 2010 traffic and revenue report also shows that eight 
carriers (including one that reported both IMTS and private line 
revenues, one that reported IMTS revenues and five that reported 
private line revenues) reported $19 million for international 
miscellaneous services, of which two reported miscellaneous services 
revenues of more than $1 million, three reported revenues of more than 
$500,000, four reported revenues of more than $200,000, six reported 
revenues of more than $50,000, while one reported revenues of less than 
$20,000. Based on its miscellaneous services revenue, this one carrier 
with revenues of less than $20,000 would be considered a small business 
under the SBA definition. Based on their private line revenues, most of 
these entities would be considered non-small entities under the SBA 
definition.
    25. IMTS Resale Providers. Providers of IMTS resale services are 
common carriers that purchase IMTS from other carriers and resell it to 
their own customers. The SBA has developed a small business size 
standard for the category of Telecommunications Resellers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees.\13\ 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.\14\ 
Thus under this category and the associated small business size 
standard, the majority of these resellers can be considered small 
entities. In the 2010 traffic and revenue report, 1,211 carriers 
reported that they provided IMTS on a pure resale basis.\15\ Based on 
their IMTS resale revenues, IMTS resale service is primarily provided 
by carriers that would be considered small businesses under the SBA 
definition. For example, of the 1,211 IMTS resale carriers, 656 
carriers reported revenues of less than $10,000; 1,014 had revenues 
less than $500,000; and 1,053 had revenues less than $1 million.\16\ 
Consequently, the Commission estimates that the majority of IMTS 
resellers are small entities that may be affected by our action.
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    \13\ 13 CFR 121.201, NAICS code 517911.
    \14\ U.S. Census Bureau, American FactFinder, 2007 Economic 
Census, https://factfinder.census.gov, (find ``Economic Census'' and 
choose ``get data.'' Then, under ``Economic Census data sets by 
sector * * *,'' choose ``Information.'' Under ``Subject Series,'' 
choose ``EC0751SSSZ5: Employment Size of Firms for the US: 2007.'' 
Click ``Next'' and find data related to NAICS code 517911 in the 
left column for ``Telecommunications Resellers'') (last visited 
March 2, 2011).
    \15\ See FCC, International Bureau, Strategic Analysis and 
Negotiations Division, 2010 International Telecommunications Data at 
page 1-2, Statistical Findings, and Table D at page 22 (March 2012), 
available at https://www.fcc.gov/ib/sand/mniab/traffic.
    \16\ Id.
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    26. Wireless Carriers and Service Providers. Included among the 
providers of IMTS resale are a number of wireless carriers that also 
provide wireless telephony services domestically. The Commission 
classifies these entities as providers of Commercial Mobile Radio 
Services (CMRS). At present, most, if not all, providers of CMRS that 
offer IMTS provide such service by purchasing IMTS from other carriers 
to resell it to their customers. The Commission has not developed a 
size standard specifically for CMRS providers that offer resale IMTS. 
Such entities would fall within the larger category of wireless 
carriers and service providers. Below, for those services subject to 
auctions, the Commission notes that, as a general matter, the number of 
winning bidders that qualify as small businesses at the close of an 
auction does not necessarily represent the number of small businesses 
currently in service. Also, the Commission does not generally track 
subsequent business size unless, in the context of assignments or 
transfers, unjust enrichment issues are implicated.
    27. Wireless Telecommunications Carriers (except Satellite). Since 
2007, the Census Bureau has placed wireless firms within this new, 
broad, economic census category.\17\ Prior to that time, such firms 
were within the now-superseded categories of Paging and Cellular and 
Other Wireless Telecommunications.\18\ Under the present and prior 
categories, the SBA has deemed a wireless business to be small if it 
has 1,500 or fewer employees.\19\ For the category of Wireless 
Telecommunications Carriers (except Satellite), Census data for 2007, 
which supersede data contained in the 2002 Census, show that there were 
1,383 firms that operated that year.\20\ Of those 1,383, 1,368 had 
fewer than 100 employees, and 15 firms had more than 100 employees. 
Thus under this category and the associated small business size 
standard, the majority of firms can be considered small. Similarly, 
according to Commission data, 413 carriers reported that they were 
engaged in the provision of wireless telephony, including cellular 
service, Personal Communications Service, and Specialized Mobile Radio 
Telephony services.\21\ Of these, an estimated 261 have 1,500 or fewer 
employees and 152 have more than 1,500 employees.\22\ Consequently, the 
Commission estimates that approximately half or more of these firms can 
be considered small. Thus, using available data, we estimate that the 
majority of wireless firms can be considered small.
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    \17\ U.S. Census Bureau, 2007 NAICS Definitions: Wireless 
Telecommunications Categories (except Satellite), https://www.census.gov/naics/2007/def/ND517210.HTM (last visited March 2, 
2011).
    \18\ U.S. Census Bureau, 2002 NAICS Definitions: Paging, https://www.census.gov/epcd/naics02/def/NDEF517.HTM (last visited March 2, 
2011); U.S. Census Bureau, 2002 NAICS Definitions: Other Wireless 
Telecommunications, https://www.census.gov/epcd/naics02/def/NDEF517.HTM (last visited March 2, 2011).
    \19\ 13 CFR 121.201, NAICS code 517210 (2007 NAICS). The now-
superseded, pre-2007 CFR citations were 13 CFR 121.201, NAICS codes 
517211 and 517212 (referring to the 2002 NAICS).
    \20\ U.S. Census Bureau, American FactFinder, 2007 Economic 
Census, https://factfinder.census.gov, (find ``Economic Census'' and 
choose ``get data.'' Then, under ``Economic Census data sets by 
sector * * *,'' choose ``Information.'' Under ``Subject Series,'' 
choose ``EC0751SSSZ5: Employment Size of Firms for the US: 2007.'' 
Click ``Next'' and find data related to NAICS code 517210 in the 
left column for ``Wireless Telecommunications Carriers (except 
Satellite)'') (last visited March 2, 2011).
    \21\ See Trends in Telephone Service at Table 5.3.
    \22\ See id.
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    28. 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

[[Page 15620]]

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.\23\ The SBA has approved these 
definitions.\24\ 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.
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    \23\ Amendment of the Commission's Rules to Establish Part 27, 
the Wireless Communications Service, GN Docket No. 96-228, Report 
and Order, 12 FCC Rcd 10785, 10879, para. 194 (1997).
    \24\ See Letter from Aida Alvarez, Administrator, SBA, to Amy 
Zoslov, Chief, Auctions and Industry Analysis Division, Wireless 
Telecommunications Bureau, FCC (filed Dec. 2, 1998) (Alvarez Letter 
1998).
---------------------------------------------------------------------------

    29. Providers of Interconnected VoIP services. In addition to the 
carriers that now file the annual traffic and revenue report, the 
Second Report and Order requires entities providing international 
calling service via Voice over Internet Protocol (VoIP) connected to 
the public switched telephone network (PSTN) to file data on their 
international voice traffic. The entities that provide such services 
are a mix of large and small entities. We do not have information on 
the size of such VoIP providers. The 2007 Economic Census includes VoIP 
providers in a larger class called ``Internet Service Providers'' 
(ISPs), and classes such ISPs in two categories, depending upon whether 
the service is provided over the provider's own facilities (e.g., cable 
or DSL ISPs), or over client-supplied telecommunications connections 
(e.g., dial-up ISPs). The former are within the category of Wired 
Telecommunications Carriers.\25\ As a result, for the purpose of this 
IRFA we shall consider all such entities to be small entities within 
the meaning of the Small Business Act., which has an SBA small business 
size standard of 1,500 or fewer employees.\26\ The latter are within 
the category of All Other Telecommunications,\27\ which has a size 
standard of annual receipts of $25 million or less.\28\ The most 
current Census Bureau data for all such firms, however, are the 2002 
data for the previous census category called Internet Service 
Providers.\29\ That category had a small business size standard of $21 
million or less in annual receipts, which was revised in late 2005 to 
$23 million. The 2002 data show that there were 2,529 such firms that 
operated for the entire year.\30\ Of those, 2,437 firms had annual 
receipts of under $10 million, and an additional 47 firms had receipts 
of between $10 million and $24,999,999.\31\ Consequently, we estimate 
that the majority of VoIP providers are small entities.
---------------------------------------------------------------------------

    \25\ U.S. Census Bureau, 2007 NAICS Definitions: Wired 
Telecommunications Carriers, https://www.census.gov/naics/2007/def/ND517110.HTM (last visited March 2, 2011).
    \26\ 13 CFR 121.201, NAICS code 517110 (updated for inflation in 
2008).
    \27\ U.S. Census Bureau, 2007 NAICS Definitions: All Other 
Telecommunications, https://www.census.gov/naics/2007/def/ND517919.HTM (last visited March 2, 2011).
    \28\ 13 CFR 121.201, NAICS code 517919 (updated for inflation in 
2008).
    \29\ U.S. Census Bureau, 2002 NAICS Definitions: Internet 
Service Providers, Web Search Portals, and Data Processing Services, 
https://www.census.gov/epcd/naics02/def/NDEF518.HTM (last visited 
March 2, 2011).
    \30\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' at Table 4, NAICS code 518111 (issued Nov. 2005).
    \31\ An additional 45 firms had receipts of $25 million or more.
---------------------------------------------------------------------------

    30. Spot Market operators. A ``spot market'' is a market where IMTS 
providers can buy or sell call completion services for calls, including 
IMTS calls. A customer of the spot market enters into a contract with 
the spot market owner to buy or sell call completion services by 
interconnecting at a spot market point of presence. The spot market 
owner acts as broker by facilitating the exchange of calls between spot 
market customers, who may not know each other's identity. The 
Commission has not developed a small business size standard 
specifically for operators of spot markets. As a result, for purposes 
of this IRFA, we shall consider all such entities to be small 
businesses.
2. Circuit Status Report
    31. The actions we take in the Second Report and Order apply only 
to entities that have international bearer circuits. The Second Report 
and Order makes changes to the information that filing entities must 
provide about international common carrier circuits.
    32. Providers of International Telecommunications Transmission 
Facilities. According to the 2010 Circuit Status Report, 70 U.S. 
international facility-based carriers filed information pursuant to 
Sec.  43.82.\32\ Some of these providers would fall within the category 
of Inter-exchange Carriers, some would fall within the category of 
Wired Telecommunications Carriers, while others may not. The Commission 
has not developed a small business size standard specifically for 
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.\33\ The circuit-status report does not include 
employee or revenue statistics, so we are unable to determine how many 
carriers could be considered small entities under the SBA standard. 
Although it is quite possible that a carrier could report a small 
amount of capacity and have significant revenues, we will consider 
those 75 carriers to be small entities at this time. In addition, of 
the 79 carriers that filed an annual circuit-status report for 2009, 
there were at least four carriers that reported no circuits owned or in 
use at the end of 2009.\34\
---------------------------------------------------------------------------

    \32\ See International Bureau Releases 2009 Year-End Circuit 
Status Report for U.S. Facilities-Based International Carriers; Data 
Reflects Continued Growth of Total Capacity Used (rel. March 30, 
2012). The report is available on the FCC Web site at https://www.fcc.gov/ib/pd/pf/csmanual.htm.
    \33\ 13 CFR 121.201, NAICS code 517110.
    \34\ Id.
---------------------------------------------------------------------------

    33. Satellite Telecommunications Providers. Other providers of 
international transmission facilities are those that operate 
international common carrier and non-common carrier satellite systems. 
Such systems provide circuits to providers of international 
telecommunication services or provide circuits directly to end users. 
The Second Report and Order requires operators of international 
satellite services to report their aggregate world-wide active circuits 
in the Circuit Status Report. The Commission has not determined a size 
standard specifically for operators of international satellite systems 
that offer circuits directly to end users. However, two economic census 
categories address the satellite industry. Under SBA rules, the first 
category has a small business size standard of $15 million or less in 
average annual receipts.\35\ The second category has a size standard of 
$25 million or less in annual receipts.\36\
---------------------------------------------------------------------------

    \35\ 13 CFR 121.201, NAICS code 517410.
    \36\ 13 CFR 121.201, NAICS code 517919.
---------------------------------------------------------------------------

    34. 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.'' \37\ Census Bureau data for 2007 show that 512 
Satellite Telecommunications firms that operated for that entire 
year.\38\ Of this total, 464

[[Page 15621]]

firms had annual receipts of under $10 million, and 18 firms had 
receipts of $10 million to $24,999,999.\39\ Consequently, the 
Commission estimates that the majority of Satellite Telecommunications 
firms are small entities that might be affected by our action.
---------------------------------------------------------------------------

    \37\ U.S. Census Bureau, 2007 NAICS Definitions, Satellite 
elecommunications, https://www.census.gov/naics/2007/def/ND517410.HTM 
(last visited March 2, 2011).
    \38\ U.S. Census Bureau, American FactFinder, 2007 Economic 
Census, https://factfinder.census.gov, (find ``Economic Census'' and 
choose ``get data.'' Then, under ``Economic Census data sets by 
sector * * *,'' choose ``Information.'' Under ``Subject Series,'' 
choose ``EC0751SSSZ4: Receipts Size of Firms for the US: 2007.'' 
Click ``Next'' and find data related to NAICS code 517210 in the 
left column for ``Satellite Telecommunications'') (last visited 
March 2, 2011).
    \39\ Id.
---------------------------------------------------------------------------

    35. The second category, i.e., All Other Telecommunications, 
comprises ``establishments primarily engaged in providing specialized 
telecommunications services, such as satellite tracking, communications 
telemetry, and radar station operation. This industry also includes 
establishments primarily engaged in providing satellite terminal 
stations and associated facilities connected with one or more 
terrestrial systems and capable of transmitting telecommunications to, 
and receiving telecommunications from, satellite systems. 
Establishments providing Internet services or voice over Internet 
protocol (VoIP) services via client-supplied telecommunications 
connections are also included in this industry.'' \40\ For this 
category, Census Bureau data for 2007 show that there were a total of 
2,383 firms that operated for the entire year.\41\ 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.\42\ Consequently, the 
Commission estimates that the majority of All Other Telecommunications 
firms are small entities that might be affected by our action.
---------------------------------------------------------------------------

    \40\ U.S. Census Bureau, 2007 NAICS Definitions, All Other 
Telecommunications, https://www.census.gov/naics/2007/def/ND517919.HTM (last visited March 2, 2011).
    \41\ U.S. Census Bureau, American FactFinder, 2007 Economic 
Census, https://factfinder.census.gov, (find ``Economic Census'' and 
choose ``get data.'' Then, under ``Economic Census data sets by 
sector * * *,'' choose ``Information.'' Under ``Subject Series,'' 
choose ``EC0751SSSZ4: Receipts Size of Firms for the US: 2007.'' 
Click ``Next'' and find data related to NAICS code 517919 in the 
left column for ``All Other Telecommunications'') (last visited 
March 2, 2011).
    \42\ Id.
---------------------------------------------------------------------------

    36. Operators of Non-Common carrier Undersea Cable Systems. The 
Second Report and Order requires all submarine cable licensees to file 
data on their circuits on submarine cable facilities. Neither the 
Commission nor the SBA has developed a size standard specifically for 
operators of non-common carrier undersea cables. Such entities would 
fall within the large category of Wired Telecommunications Carriers. 
The size standard under SBA rules for that category is that such a 
business is small if it has 1,500 or fewer employees.\43\ Census Bureau 
data for 2007, which now supersede data from the 2002 Census, show that 
there were 3,188 firms in this category that operated for the entire 
year. Of this total, 3,144 had employment of 999 employees or fewer, 
and 44 firms had had employment of 1,000 employees or more. Thus under 
this category and the associated small business size standard, the 
majority of these carriers can be considered small entities.\44\ We do 
not have data on the number of employees or revenues of operators of 
non-common carrier undersea cables. Because providers of non-common 
carrier undersea cables do not now file an annual circuit-status 
report, we do not know how many such entities provide circuits directly 
to end users. We do know that a number of such entities pay regulatory 
fees on such circuits, but the names of such entities are confidential. 
Because we do not have information on the number of employees or their 
annual revenues, we shall consider all such providers to be small 
entities for purposes of this IRFA.
---------------------------------------------------------------------------

    \43\ 13 CFR 121.201, NAICS code 517110.
    \44\ U.S. Census Bureau, American FactFinder, 2007 Economic 
Census, https://factfinder.census.gov, (find ``Economic Census'' and 
choose ``get data.'' Then, under ``Economic Census data sets by 
sector * * *,'' choose ``Information.'' Under ``Subject Series,'' 
choose ``EC0751SSSZ5: Employment Size of Firms for the US: 2007.'' 
Click ``Next'' and find data related to NAICS code 517110 in the 
left column for ``Wired telecommunications carriers'') (last visited 
March 2, 2011).
---------------------------------------------------------------------------

    37. Incumbent Local Exchange Carriers. Because some of the 
international terrestrial facilities that are used to provide 
international telecommunications services may be owned by incumbent 
local exchange carriers, we have included small incumbent local 
exchange carriers in this present RFA analysis, to the extent that such 
local exchange carriers may operate such international facilities. 
(Local exchange carriers along the U.S.-border with Mexico or Canada 
may have local facilities that cross the border.) Neither the 
Commission nor the SBA has developed a small business size standard 
specifically for incumbent local exchange carriers. 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.\45\ Census Bureau data for 
2007, which now supersede data from the 2002 Census, show that there 
were 3,188 firms in this category that operated for the entire year. Of 
this total, 3,144 had employment of 999 or fewer and 44 firms had had 
employment of 1000 or more. According to Commission data, 1,307 
carriers reported that they were incumbent local exchange service 
providers.\46\ Of these 1,307 carriers, an estimated 1,006 have 1,500 
or fewer employees and 301 have more than 1,500 employees.\47\ As noted 
above, a ``small business'' under the RFA is one that, inter alia, 
meets the pertinent small business size standard (e.g., a telephone 
communications business having 1,500 or fewer employees), and ``is not 
dominant in its field of operation.'' \48\ The SBA's Office of Advocacy 
contends that, for RFA purposes, small incumbent local exchange 
carriers are not dominant in their field of operation because any such 
dominance is not ``national'' in scope.\49\ Consequently, the 
Commission estimates that most providers of local exchange service are 
small entities that may be affected by the rules and policies we adopt 
in the Second Report and Order. We have therefore included small 
incumbent local exchange carriers in this RFA analysis, although we 
emphasize that this RFA action has no effect on Commission analysis and 
determinations in other, non-RFA contexts. Thus under this category and 
the associated small business size standard, the majority of these 
incumbent local exchange service providers can be considered small 
providers.\50\
---------------------------------------------------------------------------

    \45\ 13 CFR 121.201, NAICS code 517110.
    \46\ See Trends in Telephone Service, Federal Communications 
Commission, Wireline Competition Bureau, Industry Analysis and 
Technology Division at Table 5.3 (Sept. 2010) (Trends in Telephone 
Service).
    \47\ See id.
    \48\ 15 U.S.C. 632.
    \49\ Letter from Jere W. Glover, Chief Counsel for Advocacy, 
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small 
Business Act contains a definition of ``small-business concern,'' 
which the RFA incorporates into its own definition of ``small 
business.'' See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C. 
601(3) (RFA). SBA regulations interpret ``small business concern'' 
to include the concept of dominance on a national basis. 13 CFR 
121.102(b).
    \50\ U.S. Census Bureau, American FactFinder, 2007 Economic 
Census, https://factfinder.census.gov, (find ``Economic Census'' and 
choose ``get data.'' Then, under ``Economic Census data sets by 
sector * * *,'' choose ``Information.'' Under ``Subject Series,'' 
choose ``EC0751SSSZ5: Employment Size of Firms for the US: 2007.'' 
Click ``Next'' and find data related to NAICS code 517110 in the 
left column for ``Wired telecommunications carriers'') (last visited 
March 2, 2011).

---------------------------------------------------------------------------

[[Page 15622]]

D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    38. The Second Report and Order retains and revises the annual 
Traffic and Revenue Report and Circuit Status Report, and add the 
Service Report, because the collection and public reporting of this 
information continues to be necessary in the public interest. Because 
carriers currently are required to file the section 43.61 annual 
traffic and revenue report and the Sec.  43.82 annual circuit-status 
report, the decision to retain those reports will not impose any 
additional significant economic burden on small carriers. The Service 
Report is a simple form whose compliance burden is de minimis. The 
decision to retain the reporting of IMTS and international private 
lines on a route-by-route basis similarly continues requirement of the 
current Sec.  43.61. As a result, this conclusion will also not impose 
any significant additional burden on small carriers.
    39. The revisions the Second Report and Order makes to the 
reporting requirements will reduce overall compliance requirements and 
burden. Particularly, the elimination of the use of billing codes in 
the Traffic and Revenue Report, the requirement that filers include 
only the terminating legs of their reoriginated traffic, the 
requirement that filers report traditional transit traffic only on a 
world total basis, the requirement that filers report international 
data services only on a world-total basis, and the elimination of the 
current requirements that filers disaggregate their private line 
service data into six categories based on the speed of the service will 
simplify and lessen compliance requirements.

E. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    40. The RFA requires an agency to describe any significant, 
specifically small business, alternatives that it has considered in 
reaching its proposed approach, which may include the following four 
alternatives (among others): ``(1) the establishment of differing 
compliance or reporting requirements or timetables that take into 
account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance and 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage or the rule, or any part thereof, for small entities.'' 
\51\
---------------------------------------------------------------------------

    \51\ 5 U.S.C. 603(c)(1)-(4).
---------------------------------------------------------------------------

    41. The Second Report and Order considered consolidating the 
Traffic and Revenue Report and the Circuit Status Report into a single, 
annual report. We did not, however, adopt this consolidation because 
the timing of the availability of data makes it impossible for these 
two reports to be consolidated while providing us with information we 
need to perform our duties in a timely manner.
    42. The establishment of a $5 million revenue threshold below which 
a filing entity need not file annual traffic and revenue data for 
international resale services or miscellaneous services will 
considerably ease the reporting burden on small entities. The Second 
Report and Order also considered requiring a requirement to correct any 
errors in the reported data of over one percent in the Traffic and 
Revenue Report on an ongoing basis. We rejected this requirement, 
however, retaining the requirement that filers need only file a single 
correction 90 days after filing the report. This decision will simplify 
compliance for all filers.
Report to Congress
    43. The Commission will send a copy of this Second Report and 
Order, including this FRFA, in a report to be sent to Congress and the 
Government Accountability Office pursuant to the Congressional review 
Act.\52\ In addition, the Commission will send a copy of the Second 
Report and Order, including a copy of this FRFA, to the Chief Counsel 
for Advocacy of the SBA. A copy of the Second Report and Order and FRFA 
(or summaries thereof) will also be published in the Federal 
Register.\53\
---------------------------------------------------------------------------

    \52\ See 5 U.S.C. 801(a)(1)(A).
    \53\ See 5 U.S.C. 604(b).
---------------------------------------------------------------------------

F. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    44. None.

Ordering Clauses

    45. Accordingly, it is ordered that, pursuant to sections 1, 4(i)-
(j), 11, 201-205, 211, 214, 219, 220, 303(r), 309 and 403 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i)-(j), 161, 
201-205, 211, 214, 219-220, 303(r), 309 and 403, the policies, rules 
and requirements discussed in this Second Report and Order are adopted 
and parts 43 and 63 of the Commission's rules, 47 CFR parts 43 and 63, 
are amended as set forth in Appendix C. These rule revisions contain 
modified information collection requirements that require approval by 
the Office of Management and Budget (OMB) under the PRA. The Federal 
Communications Commission will publish a document in the Federal 
Register announcing such approval and the relevant effective date, 
after the International Bureau has made revisions to the International 
Bureau Filing System (IBFS) necessary to implement the revised 
reporting requirements adopted here.
    46. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Report and Order, including the Final Regulatory 
Flexibility Certification, to the Chief Counsel for Advocacy of the 
Small Business Administration in accordance with section 603(a) of the 
Regulatory Flexibility Act, 5 U.S.C. 601 et seq.
    47. It is further ordered that the Chief, International Bureau, 
shall issue a Public Notice announcing when the changes adopted in this 
Second Report and Order take effect, and shall issue a Public Notice 
releasing the Manual for Filing Sec.  43.62 Annual Reports.
    48. It is further ordered that the Chief, International Bureau, 
shall maintain and revise the Filing Manual and filing schedules as 
needed, and shall give notice of proposed updates by Public Notice, 
providing the public opportunity to comment on the proposed updates, 
and shall inform the public of updates by Public Notice.
    49. It is further ordered that this proceeding, IB Docket No. 04-
112, is hereby terminated.

List of Subjects in 47 CFR Parts 1, 43 and 63

    Administrative practice and procedure, Communications common 
carriers, Reporting and recordkeeping requirements, Telecommunications, 
Telephone.

Federal Communications Commission.
Sheryl D. Todd,
Deputy Secretary.

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR parts 1, 43 and 63 as follows:

PART 1--GENERAL RULES OF PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 is revised to read as follows:

    Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j), 
155, 157, 225, 227, 303(r), and 309, Cable Landing License Act of 
1921, 47 U.S.C. 35-39, and the Middle Class Tax Relief and Job 
Creation Act of 2012, Pub. L. 112-96.


[[Page 15623]]



0
2. Section 1.767 is amended by revising paragraph (l)(2) to read as 
follows:


Sec.  1.767  Cable landing licenses.

    (l) * * *
    (2) File quarterly, within 90 days from the end of each calendar 
quarter, a report of its active and idle 64 kbps or equivalent circuits 
by facility (terrestrial, satellite and submarine cable).
* * * * *

PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS, PROVIDERS OF 
INTERNATIONAL SERVICES AND CERTAIN AFFILIATES

0
3. The authority citation for part 43 is revised to read as follows:

    Authority: 47 U.S.C. 154; Telecommunications Act of 1996; Pub. 
L. 104-104, sec. 402(b)(2)(B), (c), 110 Stat. 56 (1996) as amended 
unless otherwise noted. 47 U.S.C. 211, 219, 220, as amended; Cable 
Landing License Act of 1921, 47 U.S.C. 35-39.


Sec.  43.61  [Removed]


0
4. Remove Sec.  43.61.


0
5. Add Sec.  43.62 to read as follows:


Sec.  43.62  Reporting requirements for holders of international 
Section 214 authorizations and providers of international services.

    (a) Circuit Capacity Reports. Not later than March 31 of each year:
    (1) Satellite and Terrestrial Circuits. Each facilities-based 
common carrier shall file a report showing its active common carrier 
circuits between the United States and any foreign point as of December 
31 of the preceding calendar year in any terrestrial or satellite 
facility for the provision of service to an end user or resale carrier, 
which includes active circuits used by themselves or their affiliates. 
Each non-common carrier satellite licensee shall file a report showing 
its active circuits between the United States and any foreign point as 
of December 31 of the preceding calendar sold or leased to any 
customer, including themselves or their affiliates, other than a 
carrier authorized by the Commission to provide U.S. international 
common carrier services.
    (2) International Submarine Cable Capacity--(i) The licensee(s) of 
a submarine cable between the United States and any foreign point shall 
file a report showing the capacity of the submarine cable as of 
December 31 of the preceding calendar year. The licensee(s) shall also 
file a report showing the planned capacity of the submarine cable (the 
intended capacity of the submarine cable two years from December 31 of 
the preceding calendar year). Only one cable landing licensee shall 
file the capacity data for each submarine cable. For cables with more 
than one licensee, the licensees shall determine which licensee will 
file the reports.
    (ii) Each cable landing licensee and common carrier shall file a 
report showing its capacity on submarine cables between the United 
States and any foreign point as of December 31 of the preceding 
calendar year.
    (b) Traffic and revenue reports. (1) Not later than July 31 of each 
year, each person or entity that holds an authorization pursuant to 
section 214 to provide international telecommunications service shall 
report whether it provided international telecommunications services 
during the preceding calendar year.
    (2) Not later than July 31 of each year, each common carrier 
engaged in providing international telecommunications service, and each 
person or entity engaged in providing Voice over Internet Protocol 
service connected to the public switched telephone network, between the 
United States and any foreign point shall file a report with the 
Commission showing revenues, payouts, and traffic for such 
international telecommunications service and Voice over Internet 
Protocol service connected to the public switched telephone network 
provided during the preceding calendar year.
    (3) Entities filing such reports shall submit a revised report by 
October 31 identifying and correcting any inaccuracies included in the 
annual report exceeding one percent of the reported figure.

    Note to Paragraphs (a) and (b):  United States is defined in 
section 3 of the Communications Act of 1934, as amended, 47 U.S.C. 
153.

    (c)(1) A Registration Form, containing information about the filer, 
such as address, phone number, email address, etc., shall be filed with 
each report filed pursuant to paragraphs (a) and (b).
    (2) The Registration Form shall include a certification enabling 
the filer to check a box to indicate that the filer requests that its 
circuit capacity data or traffic and revenue data be treated as 
confidential. If a filer checks that box, the Commission shall treat 
the data contained in the accompanying report as confidential. Upon 
receipt of a request for inspection of such information, the Commission 
shall notify the filer; at that point, the filer must justify continued 
confidentiality of the information consistent with section 0.459(b) of 
the Commission's rules.
    (d) Filing Manual. Authority is delegated to the Chief, 
International Bureau to prepare instructions and reporting requirements 
for the filing of these reports prepared and published as a Filing 
Manual. The information required under this section shall be furnished 
in conformance with the instructions and reporting requirements in the 
Filing Manual.

    Note to Paragraph (d):  The instructions and reporting 
requirements prepared by the Chief, International Bureau, shall be 
consistent with the terms of Reporting Requirements for U.S. 
Providers of International Telecommunications Services; Amendment of 
Part 43 of the Commission's Rules, IB Docket No. 04-112, Second 
Report and Order, FCC 13-6 (rel. January 15, 2013).

Sec.  43.82  [Removed]

0
6. Remove Sec.  43.82.

PART 63--EXTENSION OF LINES, NEW LINES AND DISCONTINUANCE, 
REDUCTION, OUTAGE AND IMPAIRMENT OF SERVICE BY COMMON CARRIERS; AND 
GRANTS OF RECOGNIZED PRIVATE OPERATING AGENCY STATUS

0
7. The authority citation for part 63 continues to read as follows:

    Authority:  Sections 1, 4(i), 4(j), 10, 11, 201-205, 214, 218, 
403 and 651 of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 154(i), 154(j), 160, 201-205, 214, 218, 403, and 571, unless 
otherwise noted.


0
8. Section 63.10 is amended by revising paragraphs (c)(2) and (4) to 
read as follows:


Sec.  63.10  Regulatory classification of U.S. international carriers.

* * * * *
    (c) * * *
    (2) File quarterly reports on traffic and revenue within 90 days 
from the end of each calendar quarter consistent with the format set 
out by the Sec.  43.62 filing manual.
* * * * *
    (4) In the case of an authorized facilities-based carrier, file 
quarterly, within 90 days from the end of each calendar quarter, a 
report of its active and idle 64 kbps or equivalent circuits by 
facility (terrestrial, satellite and submarine cable).
* * * * *


Sec.  63.18  [Amended]

0
9. Section 63.18 is amended by removing and reserving paragraph (l).

[[Page 15624]]


0
10. Section 63.21 is amended by revising paragraph (d) to read as 
follows:


Sec.  63.21  Conditions applicable to all international Section 214 
authorizations.

* * * * *
    (d) Carriers must file annual international telecommunications 
traffic and revenue as required by Sec.  43.62 of this chapter.
* * * * *

0
11. Section 63.22 is amended by revising paragraph (e) to read as 
follows:


Sec.  63.22  Facilities-based international common carriers.

* * * * *
    (e) The carrier shall file annual international circuit capacity 
reports as required by Sec.  43.62 of this chapter.
* * * * *
[FR Doc. 2013-05662 Filed 3-11-13; 8:45 am]
BILLING CODE 6712-01-P