Survey of Urban Rates for Fixed Voice and Fixed Broadband Residential Services, 29063-29071 [2013-10567]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 78, Number 96 (Friday, May 17, 2013)]
[Rules and Regulations]
[Pages 29063-29071]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-10567]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[WC Docket Nos. 10-90; DA 13-598]


Survey of Urban Rates for Fixed Voice and Fixed Broadband 
Residential Services

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Wireline Competition Bureau and the 
Wireless Telecommunications Bureau adopt the form and content for a 
survey of urban rates for fixed voice and fixed broadband residential 
services, which the Commission will use to implement universal service 
reforms adopted as part of the USF/ICC Transformation Order.

DATES: Effective May 17, 2013. This Order contains information 
collection requirements that have not been approved by the Office of 
Management and Budget (OMB). The Commission will publish a separate 
document in the Federal Register announcing their effective dates.

ADDRESSES: Federal Communications Commission, 445 12th Street SW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Suzanne Yelen, Assistant Division 
Chief, at 202-418-0626, Industry Analysis & Technology Division, 
Wireline Competition Bureau. For additional information concerning the 
PRA information collection requirements contained in this document, 
send an email to PRA@fcc.gov or contact Judith B. Herman at 202-418-
0214.

SUPPLEMENTARY INFORMATION: This is a summary of the Bureau's Urban 
Rates Survey Order in WC Docket No. 10-90; DA 13-598, released on April 
3, 2013. The full text of this document is available for public 
inspection during regular business hours in the FCC Reference Center, 
Room CY-A257, 445 12th Street SW., Washington, DC 20554, and may also 
be purchased from the Commission's copy contractor, BCPI, Inc., Portals 
II, 445 Twelfth Street SW., Room CY-B402, Washington, DC 20554. 
Customers may contact BCPI, Inc. via their Web site, https://www.bcpi.com, or call 1-800-378-3160. This document is available in 
alternative formats (computer diskette, large print, audio record, and 
Braille). Persons with disabilities who need documents in these formats 
may contact the FCC by email: FCC504@fcc.gov or phone: 202-418-0530 or 
TTY: 202-418-0432.

Synopsis of Reconsideration Order

    1. On November 18, 2011, the Commission released the USF/ICC 
Transformation Order and FNPRM, 76 FR 73830, November 29, 2011, which 
comprehensively reforms and modernizes the universal service and 
intercarrier compensation systems. In that Order, the Commission 
directed the Wireline Competition Bureau and Wireless 
Telecommunications Bureau (Bureaus) to conduct a survey of residential 
urban rates for voice services. Specifically, the Commission directed 
the Bureaus to ``develop a methodology to survey a representative 
sample of facilities-based fixed voice service providers taking into 
account the relative categories of fixed voice providers as determined 
in the most recent FCC Form 477 data collection.'' The Commission also 
delegated ``authority to conduct an annual survey of urban broadband 
rates, if necessary, in order to derive a national range of rates for 
broadband service'' and ``to monitor urban broadband offerings, 
including by conducting an annual survey, in order to specify an 
appropriate minimum for usage allowances and to adjust such a minimum 
over time.'' In the accompanying FNPRM, the Commission sought comment 
on various issues associated with determining reasonable comparability 
for voice and broadband rates.
    2. In response to the Commission's direction, the Wireline 
Competition Bureau (Bureau) released a Public Notice, 77 FR 52279, 
August 29, 2012, seeking comment on the format and content of a 
proposed survey of urban rates for fixed voice and fixed broadband 
residential services. The Bureau also sought to further develop the 
record on how we could use the data collected in the survey to 
determine the local voice rate floor and the reasonable comparability 
benchmarks for fixed voice and fixed broadband services.
    3. In the USF/ICC Transformation Order and FNPRM, the Commission 
asked if it should ``separately collect data on fixed and mobile voice 
telephony rates.'' In the Public Notice, we sought more detailed 
comment specifically on the development of a survey for fixed services. 
We now adopt a survey that collects data for fixed services.
    4. We adopt a fixed-services specific survey because we have 
decided not to create a national average urban rate that represents a 
blended rate derived from both fixed and mobile data. We conclude that 
the differences in rate plans and other attributes of fixed and mobile 
services would make it inordinately difficult to create a unified 
benchmark. Accounting for all of these differences would require 
collecting substantial additional information as well as making 
numerous assumptions that could greatly complicate the development of 
the national average. For example, fixed and mobile voice offerings 
often differ in pricing structure, with fixed voice providers charging 
for unlimited calling in the local calling area and mobile providers 
charging for a bucket of any-distance minutes. Similarly, fixed and 
mobile broadband offerings typically differ substantially in speed and 
capacity allowances. Generating a blended fixed and mobile rate would 
require accounting for the various innate properties of each service to 
make them ``comparable.'' Such a comparison would require assumptions 
about which service characteristics might be adjusted, and collection 
and analysis of data to understand customers' valuation of such 
characteristics, both of which would be resource intensive.
    5. In other respects, the Bureaus are continuing to consider the 
best approach to implementing the reasonable comparability requirements 
with respect to supported fixed and mobile services. In particular, 
some nationwide providers have argued that they should be able to meet 
the Commission's reasonable comparability benchmarks by certifying that 
they charge the same prices in rural as urban areas. We will address 
such arguments in a future order.
    6. Because we anticipate announcing reasonable comparability 
benchmarks derived from survey data after the deadline for the July 1, 
2013 ETC annual reports, ETCs (both fixed and mobile) subject to 
section 54.313 of the Commission's rules are not expected to make any 
certification that their voice service rates are reasonably comparable 
to the national average urban voice rate, as required in section 
54.313(a)(10), in their 2013 annual reports. Instead, this requirement 
will be initially implemented in the 2014 annual reports.
    7. Survey Format and Sample Selection. As proposed in the Public 
Notice, we intend to implement this survey through an online reporting 
form

[[Page 29064]]

accessible to those urban providers of fixed voice and broadband 
services that are chosen to participate. The Administrator, the 
Universal Service Administrative Company, may assist in administering 
the survey. We will select urban providers using FCC Form 477 data so 
as to create a statistically valid sample that is representative of the 
relative proportion of fixed terrestrial providers for the purpose of 
setting a reasonable comparability benchmark for fixed voice and fixed 
broadband services and a rate floor for fixed voice service. Separate, 
independent samples will be chosen for the fixed voice and fixed 
broadband sections of the survey. As further proposed in the Public 
Notice, we will survey a statistically valid sample generated from all 
fixed terrestrial providers--regardless of regulatory status or 
technology--that serve urban census tracts in Metropolitan Statistical 
Areas (MSAs) across the country. We will direct each provider chosen as 
part of the sample to indicate prices it charges within the identified 
Census tract.
    8. Although no commenters objected to this approach, the National 
Exchange Carrier Association, the National Telecommunications 
Cooperative Association, the Organization for the Promotion and 
Advancement of Small Telecommunications Companies, Eastern Rural 
Telecom Association, and the Western Telecommunications Alliance 
(together, NECA) urge the us to include within the survey sample in 
each MSA all types of providers, including providers that serve the 
whole MSA and providers that serve only a portion of the MSA. We agree. 
As proposed in the Public Notice, we will survey a statistically valid 
sample generated from all fixed terrestrial providers in each MSA, and 
we will not exclude providers based on the size of their service area 
within an MSA.
    9. Consistent with our proposal in the Public Notice, we define 
``urban'' for the purposes of this survey as all 2010 Census urban 
areas and urban clusters that sit within an MSA, which includes 
approximately 70-80 percent of the U.S. population. We will use 
Commission data, primarily collected from Form 477 submissions, to 
determine which providers are serving urban census tracts--this is the 
most efficient way to identify service providers in particular areas. 
No commenter objected to this proposal. As further proposed in the 
Public Notice, we will provide hyperlinks in the survey instrument so 
the respondent can easily associate the Census tract specified in the 
survey with a physical location within the respondent's service area.
    10. We require that a provider with multiple operating companies 
within the same Census tract answer the survey questions for each 
operating company. One commenter requests that a survey respondent need 
only report data for one operating company in those cases where the 
survey respondent has more than one operating company in a particular 
tract. We are concerned, however, that allowing survey respondents to 
select from among multiple operating companies to report data could 
inadvertently introduce statistical bias in the survey results. Once 
survey results have been collected, we will select from among the 
reported companies in each Census tract in a manner that maintains 
statistical integrity.
    11. As suggested by AT&T, we include language in the survey 
instructions specifying that providers should include in their 
responses information regarding all-distance voice services and 
broadband services even if those services are provided not just by the 
respondent, but by the respondent and an affiliate. Particularly for 
local telephone operating companies, there may be numerous instances in 
which these entities provide all-distance voice service plans and/or 
broadband services in conjunction with an affiliate and failing to 
capture these offerings could result in substantially incomplete data.
    12. Fixed Voice Offerings (Types of services). As proposed in the 
Public Notice, we require providers to report separately stand-alone, 
non-discounted rates for their unlimited or flat-rate local service, 
unlimited all distance service, and measured or messaged local service. 
If the provider does not offer any of these services, it would indicate 
this and not report data for that category. No commenter disagreed with 
this proposal. In addition, as the Wireline Competition Bureau 
proposed, we require data for circuit switched and facilities-based 
VoIP services to be collected separately. Further, we state explicitly 
in the instructions that grandfathered services and pricing are not to 
be reported in the survey.
    13. Fixed Voice Offerings (Bundled services). We decline to include 
bundled pricing in the survey at this time. In response to the Public 
Notice, NECA suggests that the survey also should collect data on 
separately-identified service rates in bundled service offerings. NECA 
argues that the majority of customers now purchase bundles and that 
because bundled rates are generally lower than a la carte rates, 
excluding bundles could create an inflated rate floor. Although we 
recognize that consumers may pay somewhat lower rates for fixed voice 
services when those services are purchased as part of a bundle, 
carriers today typically have discretion in how they allocate the price 
of a bundle among the services making up the bundle. Companies may base 
these allocations on regulatory requirements, state and local tax 
requirements or company-specific marketing initiatives. We are 
concerned about developing a rate floor and benchmark based on carrier 
self-reported allocations using inconsistent methodologies. Moreover, 
in the USF/ICC Transformation Order, the Commission specifically 
adopted a minimum rate floor ``to avoid over-subsidizing carriers whose 
intrastate rates are not minimally reasonable.'' Because bundles are 
marketing devices used to induce consumers to purchase additional 
services based on a discount, benchmarks set based on these prices 
could be artificially low. We note that the Commission has used data 
for stand-alone fixed-only service for its rate benchmark in the past.
    14. Fixed Voice Offerings (Non-recurring charges). We will collect 
information regarding non-recurring charges in the initial survey and 
will determine whether to include this data as part of the benchmark 
after the survey results have been examined. Some commenters suggest we 
should not include these charges because such fees are ``associated 
with initiating, extending, modifying, restoring, or repairing service, 
but are not the fees for the service itself, differ by customer 
location and other factors that makes including them complex, and are 
directly linked to marketing plans and are often waived. We agree that 
such fees can differ substantially among customers depending on 
location and other factors and that including these charges will add 
complexity to the survey. Further, we are mindful that non-recurring 
charges are often part of marketing strategies and may be waived or 
discounted in order to attract customers. However, we are concerned 
that there may be cases in which providers offer high non-recurring 
charges in combination with low recurring charges or allow consumers to 
pay non-recurring charges on a monthly basis, and that excluding non-
recurring charges from the survey would restrict the Bureaus' ability 
to evaluate whether such charges would materially impact the outcome 
when setting the rate floor and reasonable comparability benchmarks.
    15. Fixed Voice Offerings (Recurring charges). In the USF/ICC 
Transformation Order, the Commission determined that the rate floor 
should be

[[Page 29065]]

based upon ``end-user rates plus state regulated fees (specifically, 
state SLCs, state universal service fees, and mandatory extended area 
service charges).'' Therefore, notwithstanding arguments that fees, 
taxes, and surcharges beyond the provider's control should not be 
included in the survey, we are required to collect data on state SLCs, 
state universal service fees, and mandatory extended area service (EAS) 
charges. We conclude that there is a value in collecting information on 
such fees as individual line items on the survey in order to monitor 
over time the extent to which states impose fees for state universal 
service funds and mandatory EAS.
    16. We have modified the proposed survey to include all other 
recurring surcharges, taxes, and Telecommunications Relay Service (TRS) 
charges as a single, aggregated survey question. This information is 
relevant to our development of reasonable comparability benchmarks. 
Although we acknowledge that these charges can vary by area and 
including them may raise the complexity of the survey somewhat, these 
charges may be a significant portion of customers' monthly bills. We 
decline to include touch tone charges as a separate item in the survey 
at this time. Several of the larger incumbent carriers eliminated 
separate touchtone charges more than a decade ago, and we are not aware 
of a sufficiently large number of providers charging separately for 
touch tone service today to warrant its inclusion as a separate entry. 
To the extent some providers still charge separately for touch tone, 
they should report such charges in the line entitled ``Total of all 
other surcharges, taxes, TRS, and touch tone charges.'' For multiple, 
customer-chosen EAS charges, we include language in the survey 
instructions to specify how the provider should separately report 
mandatory and voluntary EAS charges.
    17. Fixed Voice Offerings (Local calling areas). We decline to 
collect information regarding calling area size and scope in the 
survey. Several commenters argue that the survey should gather this 
information because the typically smaller number of persons within a 
calling area in rural areas as compared to urban calling areas must be 
taken into account in calculating the rate floor. In adopting the rate 
floor rule, the Commission was seeking to ensure that consumers in 
high-cost areas pay some minimum amount to support the cost of the 
network before turning to the federal support mechanism, which 
ultimately is borne by consumers across the nation. As the Commission 
stated, ``we do not believe it is equitable for consumers across the 
country to subsidize the cost of service for some consumers that pay 
local service rates that are significantly lower than the national 
urban average.'' Calling areas (like local retail rates) are 
established by the states based on factors such as the attributes and 
needs of local communities and are not necessarily related to the cost 
of service. Considering local calling areas in the rate floor analysis 
would be inconsistent with the Commission's efforts to avoid 
subsidizing artificially low local rates.
    18. Fixed Voice Offerings (Multiple rate zones within Census 
tract). We make a minor modification to the proposal in the Public 
Notice to address the situation in which providers may have multiple 
zones that have different rates and fees within a single Census tract. 
To avoid confusion or the possibility that providers will use varying 
methods to determine an average rate among multiple zones, we include 
in the survey instructions that indicate that if a provider has 
multiple rates or other fees/taxes within a single, surveyed Census 
tract, the provider should report all of the rates for that Census 
tract separately. The Bureau will then determine which rates should be 
included in the survey in a manner that will avoid introducing 
statistical bias.
    19. Fixed Broadband Offerings (Types of services). We require 
providers to report all residential, non-discounted rates for all 
standalone service speeds above 200 kbps offered in the specified 
Census tract. This is a change from the original proposal that 
offerings be placed in one of four service tiers. We agree with 
commenters that the proposed categories in the Public Notice might not 
accommodate the variety of plans currently offered. The modified survey 
will ensure we have an understanding of the speeds available in the 
marketplace and will be easier for respondents to complete.
    20. We conclude that requiring survey respondents to use the speed 
categories in FCC Form 477 would involve more time and resources for 
filers than necessary for the Bureau to fulfill its obligations. 
Although NECA claims that this will minimize the burden on providers, 
we are not persuaded. For Form 477, providers report existing 
subscriber counts for seventy-two download and upload speed 
combinations. Because Form 477 requires providers querying their 
existing customer databases for subscriber counts and the rate survey 
requires providers to report rates that would be offered to a 
hypothetical prospective customer, we see little reason to believe 
using the Form 477 speed tiers would reduce burden.
    21. We conclude that requiring providers to report offerings both 
above and below the 4 Mbps down/1 Mbps up standard is necessary to 
fulfill our obligations. We disagree with the suggestions of several 
commenters that the Bureau should limit the survey to inquire solely 
about offerings near 4 Mbps down/1 Mbps up because only this speed is 
eligible for Connect America Fund support and all other offerings are 
therefore irrelevant or beyond the Commission's authority. In the USF/
ICC Transformation Order, the Commission concluded that it ``must also 
lay the groundwork for longer-term evolution of CAF broadband 
obligations, as we expect technical capabilities and user needs will 
continue to evolve. We therefore commit to monitoring trends in the 
performance of urban broadband offerings through the survey data we 
will collect and rural broadband offerings through the reporting data 
we will collect.'' The Commission thus has directed the Bureaus to 
conduct a survey of not just services that are close to 4 Mbps down/1 
Mbps up broadband standard, but also of trends in the broadband market. 
To fulfill this obligation, we must obtain information on a range of 
broadband speeds available in the market.
    22. Fixed Broadband Offerings (Capacity allowances). We adopt our 
proposal that providers report on any capacity allowances and what 
actions are taken when the capacity allowance is exceeded. We 
specifically identified possible actions to include overage charges, 
blocking traffic, and rate limiting. No commenter objected to including 
capacity allowance in our survey, and we conclude that it is necessary 
to know the allowances (if any) associated with each service offering 
at a given price. We adopt the suggestion of the Alaska Rural Coalition 
that the Bureau also request information regarding provider roll-over 
offerings--``the provider practice of allowing customers to `roll over' 
their unused capacity for a month to apply to future months of 
service.'' We agree that it would be useful to collect information on 
roll-over practices and add ``roll over'' as an option in the capacity 
allowance question.
    23. Fixed Broadband Offerings (Bundling, recurring, and non-
recurring charges). We conclude at this time that respondents will not 
be required to include in their survey responses rates for any service 
that cannot be purchased on a stand-alone basis. As explained above for 
voice service, determining how to allocate the price of a bundled

[[Page 29066]]

service among its components is difficult, and bundled service 
providers allocate pricing using different methodologies. Seeking data 
on prices for offerings not actually offered in the marketplace would 
likely skew the survey results.
    24. We will collect information regarding non-recurring charges 
associated with broadband services and determine whether to include 
this data in the broadband benchmark once we have evaluated the initial 
survey results. We conclude it is reasonable to gain a better 
understanding of the total price that consumers are paying, including 
non-recurring charges, before setting the broadband comparability 
benchmark. Therefore, we will adopt the recurring taxes, fees, and 
surcharge questions as proposed in the Public Notice.
    25. Non-Filers. We will contact directly any provider that is sent 
a survey notification that does not complete the online survey form 
within 30 days. Compliance with the rules adopted in this Order is 
mandatory, and failure to comply may lead to enforcement action, 
including forfeiture penalties, pursuant to the Communications Act of 
1934, as amended, and other applicable law.

Filing Procedures

    26. Once OMB has completed its review of the survey collection 
requirements adopted today, we will issue a public notice providing 
detailed instructions and announcing when the survey notifications will 
be distributed.

Congressional Review Act

    27. The Commission will send a copy of this Urban Rate Survey Order 
in a report to be sent to Congress and the Government Accountability 
Office, pursuant to the Congressional Review Act.

Paperwork Reduction Act

    28. This Urban Rates Survey Order contains new information 
collection requirements subject to the PRA. It will be submitted to OMB 
for review under section 3507(d) of the PRA. OMB, the general public, 
and other Federal agencies are invited to comment on the new 
information collection requirements contained in this proceeding.

Final Regulatory Flexibility Analysis

    29. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the Urban Rate Survey Public Notice. The Bureau sought 
written public comment on the proposals in the Urban Rates Survey 
Public Notice, including comment on the IRFA. No comments were received 
addressing the IRFA. This present Final Regulatory Flexibility Analysis 
(FRFA) conforms to the RFA.
    30. Need for and Objective of the Order. The Order adopts a survey 
of urban rates for fixed voice and fixed broadband residential services 
for purposes of implementing various reforms adopted as part of the 
USF/ICC Transformation Order. In the USF/ICC Transformation Order, the 
Commission comprehensively reformed universal service funding for high-
cost, rural areas, adopting fiscally responsible, accountable, 
incentive-based policies to preserve and advance voice and broadband 
service. As discussed in the Order, the rate survey will be used to 
develop benchmarks and rate floors to insure supported providers' rates 
are not unreasonably high or unnecessarily low.
    31. Summary of Significant Issues Raised by Public Comments in 
Response to the IRFA. No parties have raised significant issues in 
response to the IRFA.
    32. Response to Comments by the Chief Counsel for Advocacy of the 
Small Business Administration. Pursuant to the Small Business Jobs Act 
of 2010, the Commission is required to respond to any comments filed by 
the Chief Counsel for Advocacy of the Small Business Administration 
(SBA), and to provide a detailed statement of any change made to the 
proposed rules as a result of those comments. The Chief Counsel did not 
file any comments in response to the proposed rules in this proceeding.
    33. Description and Estimate of the Number of Small Entities to 
Which the Adopted Rules Will Apply. 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 rules and policies adopted 
herein. The RFA generally defines the term ``small entity'' as having 
the same meaning as the terms ``small business,'' ``small 
organization,'' and ``small governmental jurisdiction.'' In addition, 
the term ``small business'' has the same meaning as the term ``small 
business concern'' under the Small Business Act. A ``small business 
concern'' is one 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 SBA. Nationwide, there are a 
total of approximately 27.5 million small businesses, according to the 
SBA.
    34. Small Business. Nationwide, there are a total of approximately 
27.5 million small businesses, according to the SBA.
    35. Wired Telecommunications Carriers. The SBA has developed a 
small business size standard for Wired Telecommunications Carriers, 
which consists of all such companies having 1,500 or fewer employees. 
According to Census Bureau data for 2007, there were 3,188 firms in 
this category, total, that operated for the entire year. Of this total, 
3144 firms had employment of 999 or fewer employees, and 44 firms had 
employment of 1000 employees or more. Thus, under this size standard, 
the majority of firms can be considered small.
    36. Local Exchange Carriers (LECs). Neither the Commission nor the 
SBA has developed a size standard for small businesses specifically 
applicable to local exchange services. The closest applicable size 
standard under SBA rules is for Wired Telecommunications Carriers. 
Under that size standard, such a business is small if it has 1,500 or 
fewer employees. According to Commission data, 1,307 carriers reported 
that they were incumbent local exchange service providers. Of these 
1,307 carriers, an estimated 1,006 have 1,500 or fewer employees and 
301 have more than 1,500 employees. Consequently, the Commission 
estimates that most providers of local exchange service are small 
entities that may be affected by the rules and policies adopted in the 
Order.
    37. Incumbent Local Exchange Carriers (incumbent LECs). Neither the 
Commission nor the SBA has developed a size standard for small 
businesses specifically applicable to incumbent local exchange 
services. The closest applicable size standard under SBA rules is for 
Wired Telecommunications Carriers. Under that size standard, such a 
business is small if it has 1,500 or fewer employees. According to 
Commission data, 1,307 carriers reported that they were incumbent local 
exchange service providers. Of these 1,307 carriers, an estimated 1,006 
have 1,500 or fewer employees and 301 have more than 1,500 employees. 
Consequently, the Commission estimates that most providers of incumbent 
local exchange service are small businesses that may be affected by 
rules adopted in the Order.
    38. Competitive Local Exchange Carriers (competitive LECs), 
Competitive Access Providers (CAPs), Shared-Tenant Service Providers, 
and Other Local Service Providers. Neither the Commission nor the SBA 
has developed a small business size standard specifically for these 
service providers. The appropriate size standard under SBA rules is for 
the category Wired Telecommunications Carriers. Under

[[Page 29067]]

that size standard, such a business is small if it has 1,500 or fewer 
employees. According to Commission data, 1,442 carriers reported that 
they were engaged in the provision of either competitive local exchange 
services or competitive access provider services. Of these 1,442 
carriers, an estimated 1,256 have 1,500 or fewer employees and 186 have 
more than 1,500 employees. In addition, 17 carriers have reported that 
they are Shared-Tenant Service Providers, and all 17 are estimated to 
have 1,500 or fewer employees. In addition, 72 carriers have reported 
that they are Other Local Service Providers. Of the 72, seventy have 
1,500 or fewer employees and two have more than 1,500 employees. 
Consequently, the Commission estimates that most providers of 
competitive local exchange service, competitive access providers, 
Shared-Tenant Service Providers, and Other Local Service Providers are 
small entities that may be affected by rules adopted pursuant to the 
Order.
    39. Wireless Telecommunications Carriers (except Satellite). Since 
2007, the SBA has recognized wireless firms within this new, broad, 
economic census category. Prior to that time, such firms were within 
the now-superseded categories of Paging and Cellular and Other Wireless 
Telecommunications. Under the present and prior categories, the SBA has 
deemed a wireless business to be small if it has 1,500 or fewer 
employees. For this category, census data for 2007 show that there were 
1,383 firms that operated for the entire year. Of this total, 1,368 
firms had employment of 999 or fewer employees and 15 had employment of 
1000 employees or more. Similarly, according to Commission data, 413 
carriers reported that they were engaged in the provision of wireless 
telephony, including cellular service, Personal Communications Service 
(PCS), and Specialized Mobile Radio (SMR) Telephony services. Of these, 
an estimated 261 have 1,500 or fewer employees and 152 have more than 
1,500 employees. Consequently, the Commission estimates that 
approximately half or more of these firms can be considered small. 
Thus, using available data, we estimate that the majority of wireless 
firms can be considered small.
    40. Local Multipoint Distribution Service. Local Multipoint 
Distribution Service (``LMDS'') is a fixed broadband point-to-
multipoint microwave service that provides for two-way video 
telecommunications. The auction of the 986 LMDS licenses began and 
closed in 1998. The Commission established a small business size 
standard for LMDS licenses as an entity that has average gross revenues 
of less than $40 million in the three previous calendar years. An 
additional small business size standard for ``very small business'' was 
added as an entity that, together with its affiliates, has average 
gross revenues of not more than $15 million for the preceding three 
calendar years. The SBA has approved these small business size 
standards in the context of LMDS auctions. There were 93 winning 
bidders that qualified as small entities in the LMDS auctions. A total 
of 93 small and very small business bidders won approximately 277 A 
Block licenses and 387 B Block licenses. In 1999, the Commission re-
auctioned 161 licenses; there were 32 small and very small businesses 
winning that won 119 license.
    41. Cable and Other Program Distribution. Since 2007, these 
services have been defined within the broad economic census category of 
Wired Telecommunications Carriers; that category is defined as follows: 
``This industry comprises establishments primarily engaged in operating 
and/or providing access to transmission facilities and infrastructure 
that they own and/or lease for the transmission of voice, data, text, 
sound, and video using wired telecommunications networks. Transmission 
facilities may be based on a single technology or a combination of 
technologies.'' The SBA has developed a small business size standard 
for this category, which is: all such firms having 1,500 or fewer 
employees. According to Census Bureau data for 2007, there were a total 
of 955 firms in this previous category that operated for the entire 
year. Of this total, 939 firms had employment of 999 or fewer 
employees, and 16 firms had employment of 1000 employees or more. Thus, 
under this size standard, the majority of firms can be considered small 
and may be affected by rules adopted pursuant to the Order.
    42. Cable Companies and Systems. The Commission has developed its 
own small business size standards, for the purpose of cable rate 
regulation. Under the Commission's rules, a ``small cable company'' is 
one serving 400,000 or fewer subscribers, nationwide. Industry data 
indicate that, of 1,076 cable operators nationwide, all but eleven are 
small under this size standard. In addition, under the Commission's 
rules, a ``small system'' is a cable system serving 15,000 or fewer 
subscribers. Industry data indicate that, of 7,208 systems nationwide, 
6,139 systems have under 10,000 subscribers, and an additional 379 
systems have 10,000-19,999 subscribers. Thus, under this second size 
standard, most cable systems are small and may be affected by rules 
adopted pursuant to the Order.
    43. Cable System Operators. The Act also contains a size standard 
for small cable system operators, which is ``a cable operator that, 
directly or through an affiliate, serves in the aggregate fewer than 1 
percent of all subscribers in the United States and is not affiliated 
with any entity or entities whose gross annual revenues in the 
aggregate exceed $250,000,000.'' The Commission has determined that an 
operator serving fewer than 677,000 subscribers shall be deemed a small 
operator, if its annual revenues, when combined with the total annual 
revenues of all its affiliates, do not exceed $250 million in the 
aggregate. Industry data indicate that, of 1,076 cable operators 
nationwide, all but ten are small under this size standard. We note 
that the Commission neither requests nor collects information on 
whether cable system operators are affiliated with entities whose gross 
annual revenues exceed $250 million, and therefore we are unable to 
estimate more accurately the number of cable system operators that 
would qualify as small under this size standard.
    44. Open Video Services. The open video system (``OVS'') framework 
was established in 1996, and is one of four statutorily recognized 
options for the provision of video programming services by local 
exchange carriers. The OVS framework provides opportunities for the 
distribution of video programming other than through cable systems. 
Because OVS operators provide subscription services, OVS falls within 
the SBA small business size standard covering cable services, which is 
``Wired Telecommunications Carriers.'' The SBA has developed a small 
business size standard for this category, which is: all such firms 
having 1,500 or fewer employees. According to Census Bureau data for 
2007, there were a total of 955 firms in this previous category that 
operated for the entire year. Of this total, 939 firms had employment 
of 999 or fewer employees, and 16 firms had employment of 1000 
employees or more. Thus, under this second size standard, most OVS 
operators are small and may be affected by rules adopted pursuant to 
the Order. In addition, we note that the Commission has certified some 
OVS operators, with some now providing service. Broadband service 
providers (``BSPs'') are currently the only significant holders of OVS 
certifications or local OVS franchises. The Commission does not have 
financial or employment information regarding the entities authorized 
to provide OVS, some of which may not yet be operational. Thus, again, 
at least

[[Page 29068]]

some of the OVS operators may qualify as small entities.
    45. Internet Service Providers. Since 2007, these services have 
been defined within the broad economic census category of Wired 
Telecommunications Carriers; that category is defined as follows: 
``This industry comprises establishments primarily engaged in operating 
and/or providing access to transmission facilities and infrastructure 
that they own and/or lease for the transmission of voice, data, text, 
sound, and video using wired telecommunications networks. Transmission 
facilities may be based on a single technology or a combination of 
technologies.'' The SBA has developed a small business size standard 
for this category, which is: all such firms having 1,500 or fewer 
employees. According to Census Bureau data for 2007, there were 3,188 
firms in this category, total, that operated for the entire year. Of 
this total, 3144 firms had employment of 999 or fewer employees, and 44 
firms had employment of 1000 employees or more. Thus, under this size 
standard, the majority of firms can be considered small. In addition, 
according to Census Bureau data for 2007, there were a total of 396 
firms in the category Internet Service Providers (broadband) that 
operated for the entire year. Of this total, 394 firms had employment 
of 999 or fewer employees, and two firms had employment of 1000 
employees or more. Consequently, we estimate that the majority of these 
firms are small entities that may be affected by rules adopted pursuant 
to the Order.
    46. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements. In the Order, the Bureau adopts a survey of 
urban rates for fixed voice and fixed broadband residential services. 
Specifically, it requires reporting by a number of entities that are 
included in the sample, including some small entities, of advertised 
rates and product offerings.
    47. Steps Taken to Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered. The RFA requires an 
agency to describe any significant 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 or 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.
    48. The requirements adopted in the Order comprise an efficient 
data collection process that imposes the smallest burden on fixed voice 
and fixed broadband providers that still allows the Commission to 
gather the necessary data to meet the goals of the USF/ICC 
Transformation Order. The rate survey is not anticipated to have a 
significant economic impact on small entities because the survey will 
only sample a small number of providers. Furthermore, since the 
statistical sampling methodology will result in larger entities being 
more likely to be surveyed, we anticipate small entities will only 
compose a minor portion of the overall sample. Moreover, the survey 
only asks about advertised rates and product offerings which should be 
readily available to entities of any size. Furthermore, any significant 
economic impact cannot necessarily be minimized through alternatives 
since the survey sample will already be restricted to a small set of 
the total population of carriers necessary for generating a 
statistically valid sample, and the survey will only ask for readily 
available advertised rates and will be implemented in an easily 
accessible online format.
    49. Report to Congress. The Commission will send a copy of the 
Order, including this FRFA, in a report to Congress pursuant to the 
Congressional Review Act. In addition, the Commission will send a copy 
of the Order, including this FRFA, to the Chief Counsel for Advocacy of 
the SBA.

Ordering Clauses

    50. Accordingly, it is ordered, pursuant to sections 1, 2, 4(i), 5, 
201-205, 218-220, 254, 303(r), and 403 of the Communications Act of 
1934, as amended, 47 U.S.C. 151, 152, 154(i), 155, 201-205, 218-220, 
254, 303(r), and 403, sections 0.91, 0.131, 0.201(d), 0.291, 0.331 and 
1.427 of the Commission's rules, 47 CFR 0.91, 0.131, 0.201(d), 0.291, 
0.331, 1.427, and the delegations of authority in paragraphs 85, 99, 
106, 114, and 246 of the USF/ICC Transformation Order, FCC 11-161, that 
this Order is adopted.
    51. It is further ordered that this Order shall be effective thirty 
(30) days after publication in the Federal Register, except for the 
requirements contained in paragraphs 11-13, 15-17, 19-20, 23, and 25-
26, and Appendix A, which are subject to the Paperwork Reduction Act 
(PRA). These requirements include new or modified information 
collection requirements that require approval by the Office of 
Management and Budget under the PRA, and shall become effective after 
the Commission publishes a notice in the Federal Register announcing 
such approval and the relevant effective date(s).
    52. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Order, including the Final Regulatory Flexibility 
Analysis, to the Chief Counsel for Advocacy of the Small Business 
Administration.
    53. It is further ordered that the Commission shall send a copy of 
this Order to Congress and the Government Accountability Office 
pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).

Federal Communications Commission.
Carol Mattey,
Deputy Bureau Chief, Wireline Competition Bureau.

Appendix A--Urban Rates Survey Form

I. Survey Respondent Information

Provider Name: (pre-populated by FCC)
Operating Company Name:
Provider FRN (used on MONTH DAY, YEAR Form 477):
Provider Study Area Code (if current USF recipient):
Name of Person Completing Form:
Contact Phone Number:
Contact Email Address:
Name of Certifying Official:
Certifying Official's Phone Number:
Certifying Official's Email Address:
Location for Which Reported Rates Apply: (pre-populated by FCC)

II. Fixed Voice Information

    For each specified voice service offered within the Census tract 
on MONTH DAY, YEAR, respondents must report non-discounted recurring 
monthly rates and service initiation charges. Detailed instructions 
for each question section are provided in the particular section. 
Note that circuit-switched and VoIP service information should be 
reported separately as indicated.

II.a Rate and Charge Information

    In some cases, multiple rates and or taxes/fees/surcharges may 
exist for the same service within the Census tract. If this occurs 
for the specified Census tract, respondents must report the least 
and most expensive total cost offerings. For example, if two 
different rates (or other surveyed amounts such as taxes) for flat-
rate, local service are applicable to two different portions of the 
Census tract, then the respondent should indicate that multiple 
rates exist.

Do multiple rates and/or taxes, fees, surcharges exist for this 
service offering within the same specified Census tract?
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance

[[Page 29069]]

service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)

II.a.1 Monthly Rates

    For each service offered, report each component of the rate in 
dollar and cents amounts. If both circuit switched and VoIP service 
are offered, report information for both services. Reported monthly 
rates should be standard, non-discounted residential rates. If there 
are multiple rates or taxes/fees/surcharges for the same service 
offering in the specified Census tract (indicated by ``Yes'' in the 
previous question), report the least total monthly cost offering in 
Sections 11.a.1 and 11.a.2, and the greatest total monthly cost 
rates in Sections II.a.3 and II.a.4. If there is only one rate to 
report, use Sections 11.a.1 and 11.a.2. ``All-distance'' services 
include only domestic calling, not international.

Recurring service charge (without SLC)
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Federal subscriber line charge (SLC), if any
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Access Recovery Charge (ARC), if any
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
State SLC, if any
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
State USF charge, if any
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Mandatory extended area service (EAS) charges, if any
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Voluntary EAS charges, if any
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Total of all other surcharges, taxes, and TRS charges. (See 
instructions for a list of charges to be included.)
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Number of voice calls or message units included in monthly rate if 
measured service (local service area calls only)
    For Circuit Switched (measured or messaged local service)
    For VoIP (measured or messaged local service)
Dollar calling allowance for voice calls included in monthly rate if 
measured service (local service area calls only).
    For Circuit Switched (measured or messaged local service)
    For VoIP (measured or messaged local service)
Peak period local rate per unit (minute or call/message) once 
allowance exceed, if measured service.
    For Circuit Switched (measured or messaged local service, 
indicate if rate is per call or per minute)
    For VoIP Switched (measured or messaged local service, indicate 
if rate is per call or per minute)
Off-peak period local rate per unit (minute or call/message) once 
allowance exceeded, if measured service.
    For Circuit Switched (measured or messaged local service, 
indicate if rate is per call or per minute)
    For VoIP Switched (measured or messaged local service, indicate 
if rate is per call or per minute)

II.a.2 Service Initiation Charges

    For each item listed, report the minimum non-discounted amount a 
customer would pay for each non-recurring charge. If an item is not 
offered by the carrier, then mark ``N/A.''

Total connection charge for residential service if no premises visit 
is required.
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Minimum additional charge if drop line and terminal block are needed 
to connect service. Do not include any inside wiring charges.
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Mandatory surcharges on connection accounted as company revenue
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
State, county, and local taxes and surcharges on connection
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Other mandatory connection charges
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)

II.a.3 Monthly Rates (Use Only If Multiple Rates)

    Only use the following rates and charges questions if reporting 
multiple rates and/or taxes/fees/surcharges for the same service in 
the same Census tract. Report rates and charges for the greatest 
total monthly cost offering.

Federal subscriber line charge (SLC), if any
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Access Recovery Charge (ARC), if any
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
State SLC, if any
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
State USF charge, if any
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Mandatory extended area service (EAS) charges, if any
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Voluntary EAS charges, if any
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance

[[Page 29070]]

service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Total of all other surcharges, taxes, and TRS charges. (See 
instructions for a list of charges to be included.)
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Number of voice calls or message units included in monthly rate if 
measured service (local service area calls only)
    For Circuit Switched (measured or messaged local service)
    For VoIP (measured or messaged local service)
Dollar calling allowance for voice calls included in monthly rate if 
measured service (local service area calls only).
    For Circuit Switched (measured or messaged local service)
    For VoIP (measured or messaged local service)
Peak period local rate per unit (minute or call/message) once 
allowance exceed, if measured service.
    For Circuit Switched (measured or messaged local service, 
indicate if rate is per call or per minute)
    For VoIP Switched (measured or messaged local service, indicate 
if rate is per call or per minute)
Off-peak period local rate per unit (minute or call/message) once 
allowance exceeded, if measured service.
    For Circuit Switched (measured or messaged local service, 
indicate if rate is per call or per minute)
    For VoIP Switched (measured or messaged local service, indicate 
if rate is per call or per minute)

II.a.4 Service Initiation Charges (Use Only If Multiple Rates)

    For each item listed, report the minimum non-discounted amount a 
customer would pay for each non-recurring charge. If an item is not 
offered by the carrier, then mark ``N/A.''

Total connection charge for residential service if no premises visit 
is required.
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Minimum additional charge if drop line and terminal block are needed 
to connect service. Do not include any inside wiring charges.
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Mandatory surcharges on connection accounted as company revenue
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
State, county, and local taxes and surcharges on connection
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)
Other mandatory connection charges
    For Circuit Switched (unlimited or flat-rate local service, 
unlimited all-distance service, measured or messaged local service)
    For VoIP (unlimited or flat-rate local service, unlimited all-
distance service, measured or messaged local service)

III. Internet Service Information

    For each standalone, Internet service offered in the specified 
Census tract on MONTH DAY, YEAR, report information on the service's 
technology, advertised speeds, capacity allowances (if any), 
recurring rates, and non-recurring rates. Only report offerings 
where both the download and upload speeds are at least 200 kbps. 
Detailed instructions for each question section are provided in the 
particular section. Report information for each service offering 
distinguished by speeds, technology, and capacity allowance (if 
any). In the form, each column represents a separate speed/
technology/capacity allowance combination.

III.a Service Information

    Report information for each service offering distinguished by 
speeds, technology, and capacity allowance (if any). For example, if 
in the specified Census tract, unlimited 5/2 Mbps residential 
service is offered using either DSL or fiber to the home (FTTH), 
then report the 5/2 Mbps DSL unlimited service in one column and the 
5/2 Mbps FFTH unlimited service in the next column. As another 
example, if a 10/2 Mbps DSL services is offered with either a 100 GB 
or 200 GB capacity allowance then report the 10/2 Mbps DSL 100 GB 
service in one column and the 10/2 Mbps DSL 200 GB service in the 
next column. Use as many columns (and extend as necessary) to report 
on all offered services. A drop down box allows for selecting the 
following technologies: DSL, FTTH, cable, fixed wireless, and other. 
Note that FTTH should only be used if the optical fiber reaches the 
boundary of the living space, such as a box on the outside wall. 
Report advertised speeds in Mbps.

Service Technology
Advertised Download Speed (Mbps)
Advertised Upload Speed (Mbps)

III.b Capacity Allowance Information

    Report capacity allowances (in GB) applied to the service, if 
any. A capacity allowance is the monthly data usage level at which 
the Internet Service provider begins to block, rate-limit, or charge 
excess fees for additional data transmission. If a service offering 
has no specified allowance then enter ``Unlimited.'' For each 
capacity allowance in place, indicate what action is taken when the 
allowance is reached. For services with capacity allowances, a drop 
down box will offer a menu of actions the ISP will take once the 
limit is reached. These include ``Overage Charge,'' ``Blocking 
Traffic,'' ``Rate- limiting,'' and ``Other.'' If a capacity 
allowance is based on a customer's use relative to other customers, 
report the data amount (in GB) for which the allowance would be 
reached as of MONTH DAY, YEAR. Also indicate whether un-used data 
capacity may be ``rolled over'' from month to month.
    Monthly capacity allowance on service (GB), if any. If no 
specified allowance, choose ``Unlimited.''
    May unused capacity be rolled-over to the next month?
    If the capacity allowance is reached, what action is taken?

III.c Rate and Charges Information

    In some cases, multiple rates and/or taxes/fees/surcharges may 
exist for the same service within the Census tract. If this occurs 
for the specified Census tract, respondents must report the least 
and most expensive total cost offerings.
    Do multiple rates and/or taxes, fees, surcharges exist for the 
same service offering within the same specified Census tract? (yes/
no)

III.c.1 Recurring Rates

    For each service offering, report each component of the rate in 
dollar and cents amounts. Reported monthly rates should be standard, 
non-discounted residential rates. In some cases, this may be the 
month-to-month rate available to a customer not eligible for 
introductory rates, etc. If there are multiple rates or taxes/fees/
surcharges for the same service offering in the specified Census 
tract (indicated by ``Yes'' in the previous question), report the 
least total monthly cost offering in the Sections III.c.1 and 
III.c.2, and the greatest total monthly cost rates in Sections 
III.c.3 and III.c.4. If there is only one rate to report, use 
Sections III.c.1 and III.c.2.

Recurring monthly charge
Total of state, local, and municipal taxes
Total of all other mandatory fees and taxes (such as provider 
surcharges, etc.) passed through.
Surcharges on the service accounted as company revenue (i.e. non-
pass through)

III.c.2 Non-Recurring Charges

    For each item listed, report the minimum amount a customer would 
pay for each non-recurring charge if the item is required for the 
Internet service. If an item is not offered by the provider, then 
mark it as ``NA''.
    Activation or connection not requiring a service visit to the 
premises
    Activation or connection requiring a service visit (but assuming 
the premises is already physically wired)
    Does this service require the customer use a modem or other 
hardware? (yes/no)
    If ``Yes'' for modem and hardware question, what is the purchase 
price for necessary hardware? (if provider sells such hardware.)

[[Page 29071]]

    If ``Yes'' for modem and hardware question, what is the monthly 
rental price for necessary hardware? (if provider rents hardware.)
    Computer/laptop hook-up by service technician already making a 
service visit.

III.c.3 Recurring Rates (Use Only If Multiple Rates)

    Only answer the following rates and charges questions if 
reporting multiple rates and/or taxes/fees/surcharges for the same 
service in the same Census tract. Report rates and charges for the 
greatest total monthly cost offering.

Recurring monthly charge
Total of state, local, and municipal taxes
Total of all other mandatory fees and taxes (such as provider 
surcharges, etc.) passed through.
Surcharges on the service accounted as company revenue (i.e. non-
pass through)

III.c.4 Non-Recurring Rates (Use Only If Multiple Rates)

    For each item listed, report the minimum amount a customer would 
pay for each non-recurring charge if the item is required for the 
Internet service. If an item is not offered by the provider, then 
mark it as ``NA''.
Activation or connection not requiring a service visit to the 
premises
Activation or connection requiring a service visit (but assuming the 
premises is already physically wired)
Does this service require the customer use a modem or other 
hardware? (yes/no)
If ``Yes'' for modem and hardware question, what is the purchase 
price for necessary hardware? (if provider sells such hardware.)
If ``Yes'' for modem and hardware question, what is the monthly 
rental price for necessary hardware? (if provider rents hardware.)
Computer/laptop hook-up by service technician already making a 
service visit.

[FR Doc. 2013-10567 Filed 5-16-13; 8:45 am]
BILLING CODE 6712-01-P