Connect America Fund; ETC Annual Reports and Certifications, 44352-44363 [2014-17986]
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DEFAULT GWPS FOR COMPOUNDS FOR WHICH CHEMICAL-SPECIFIC GWPS ARE NOT LISTED ABOVE
Global warming
potential
(100 yr.)
Fluorinated GHG group d
Fully fluorinated GHGs ..................................................................................................................................................................
Saturated hydrofluorocarbons (HFCs) ...........................................................................................................................................
Partially segregated saturated hydrofluoroethers (HFEs) and hydrochlorofluoroethers (HCFEs) ................................................
Non-segregated saturated HFEs and HCFEs ...............................................................................................................................
Unsaturated perfluorocarbons (PFCs), unsaturated HFCs, unsaturated hydrochlorofluorocarbons (HCFCs), unsaturated halogenated ethers, unsaturated halogenated esters, fluorinated aldehydes, and fluorinated ketones .......................................
Fluorotelomer alcohols ..................................................................................................................................................................
Fluorinated GHGs with carbon-iodine bond(s) ..............................................................................................................................
Other fluorinated GHGs .................................................................................................................................................................
10,000
2,200
200
2,400
1
1
1
110
a The
GWP for this compound is different than the GWP in the version of Table A–1 to subpart A of Part 98 published on October 30, 2009.
compound was added to Table A–1 for reporting year 2014 and subsequent reporting years.
c The GWP for this compound was updated for reporting year 2014 and subsequent reporting years.
d For electronics manufacturing (as defined in § 98.90), the term ‘‘fluorinated GHGs’’ in the definition of each fluorinated GHG group in § 98.6
shall include fluorinated heat transfer fluids (as defined in § 98.98), whether or not they are also fluorinated GHGs.
b This
Subpart I—Electronics Manufacturing
6. Section 98.93 is amended by
revising paragraph (i)(2) introductory
paragraph to read as follows:
■
§ 98.93
Calculating GHG emissions.
*
*
*
*
*
(i) * * *
(2) Method selection for stack systems
in the fab. If the calculations under
paragraph (i)(1) of this section, as well
as any subsequent annual measurements
and calculations under this subpart,
indicate that the stack system meets the
criteria in paragraph (i)(2)(i) through
(iii) of this section, then you may
comply with either paragraph (i)(3) of
this section (stack test method) or
paragraph (i)(4) of this section (method
to estimate emissions from the stack
systems that are not tested). If the stack
system does not meet all three criteria
in paragraphs (i)(2)(i) through (iii) of
this section, then you must comply with
the stack test method specified in
paragraph (i)(3) of this section.
*
*
*
*
*
■ 7. Section 98.94 is amended by:
■ a. Removing paragraph (j)(5)(ii)(C);
and
■ b. Revising paragraph (j)(8)(i).
The revision reads as follows:
§ 98.94 Monitoring and QA/QC
requirements.
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*
*
*
*
*
(j) * * *
(8) * * *
(i) Annual consumption of a
fluorinated GHG used during the most
recent emissions test (expressed in
CO2e) changes by more than 10 percent
of the total annual fluorinated GHG
consumption, relative to gas
consumption in CO2e for that gas during
the year of the most recent emissions
test (for example, if the use of a single
gas goes from 25 percent of CO2e to
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greater than 35 percent of CO2e, this
change would trigger a re-test).
*
*
*
*
*
■ 8. Section 98.96 is amended by:
■ a. Revising the parameter ‘‘GWPi’’ of
Equation I–26 in introductory paragraph
(r);
■ b. Revising the parameters ‘‘GWPi’’
and ‘‘GWPk’’ of Equation I–27 in
paragraph (r)(1);
■ c. Revising the parameters ‘‘GWPi’’
and ‘‘GWPk’’ of Equation I–28 in
paragraph (r)(2); and
■ d. Revising paragraph (x).
The revisions read as follows:
§ 98.96
Data reporting requirements.
*
*
*
*
*
(r) * * *
*
*
*
*
*
GWPi = GWP of emitted fluorinated
GHG i from Table A–1 of this part.
*
*
*
*
*
(1) * * *
*
*
*
*
*
GWPi = GWP of emitted fluorinated
GHG i from Table A–1 of this part.
GWPk = GWP of emitted fluorinated
GHG by-product k, from Table A–1 of
this part.
*
*
*
*
*
(2) * * *
*
*
*
*
*
GWPi = GWP of emitted fluorinated
GHG i from Table A–1 of this part.
GWPk = GWP of emitted fluorinated
GHG by-product k, from Table A–1 of
this part.
*
*
*
*
*
(x) If the emissions you report under
paragraph (c) of this section include
emissions from research and
development activities, as defined in
§ 98.6, report the approximate
percentage of total GHG emissions, on a
metric ton CO2e basis, that are
attributable to research and
development activities, using the
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following ranges: less than 5 percent, 5
percent to less than 10 percent, 10
percent to less than 25 percent, 25
percent to less than 50 percent, 50
percent and higher.
*
*
*
*
*
[FR Doc. 2014–17963 Filed 7–30–14; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 54
[WC Docket Nos. 10–90, 14–58; FCC 14–
98]
Connect America Fund; ETC Annual
Reports and Certifications
Federal Communications
Commission.
ACTION: Proposed rule.
AGENCY:
In this document, the Federal
Communications Commission
(Commission) seeks comment on how
best to maximize the reach of our
existing Connect America budget and
leverage non-Federal funding to extend
broadband to as many households as
possible when the Commission
implements Phase II. Specifically, the
Commission seeks comment regarding
measures the Commission could take in
the Phase II competitive bidding process
to create incentives for state and other
governmental entities to contribute
funding to support the extension of
broadband-capable networks.
DATES: Comments are due on or before
September 2, 2014 and reply comments
are due on or before September 15,
2014. If you anticipate that you will be
submitting comments, but find it
difficult to do so within the period of
time allowed by this document, you
should advise the contact listed below
as soon as possible.
SUMMARY:
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You may submit comments,
identified by either WC Docket No. 10–
90 or WC Docket No. 14–58, by any of
the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Federal Communications
Commission’s Web site: https://
fjallfoss.fcc.gov/ecfs2/. Follow the
instructions for submitting comments.
• People with Disabilities: Contact the
FCC to request reasonable
accommodations (accessible format
documents, sign language interpreters,
CART, etc.) by email: FCC504@fcc.gov
or phone: (202) 418–0530 or TTY: (202)
418–0432.
For detailed instructions for
submitting comments and additional
information on the rulemaking process,
see the SUPPLEMENTARY INFORMATION
section of this document.
FOR FURTHER INFORMATION CONTACT:
Alexander Minard, Wireline
Competition Bureau, (202) 418–7400 or
TTY: (202) 418–0484.
SUPPLEMENTARY INFORMATION: This is a
synopsis of the Commission’s Further
Notice of Proposed Rulemaking
(FNPRM) in WC Docket Nos. 10–90, 14–
58; FCC 14–98, adopted on July 11, 2014
and released on July 14, 2014. 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. Or at the
following Internet address: https://
transition.fcc.gov/Daily_Releases/
Daily_Business/2014/db0714/FCC-1498A1.pdf. The Report and Order that
was adopted concurrently with the
FNPRM will be published elsewhere in
the Federal Register.
Pursuant to §§ 1.415 and 1.419 of the
Commission’s rules, 47 CFR 1.415,
1.419, interested parties may file
comments and reply comments on or
before the dates indicated on the first
page of this document. Comments may
be filed using the Commission’s
Electronic Comment Filing System
(ECFS). See Electronic Filing of
Documents in Rulemaking Proceedings,
63 FR 24121, May 1, 1998.
• Electronic Filers: Comments may be
filed electronically using the Internet by
accessing the ECFS: https://
fjallfoss.fcc.gov/ecfs2/.
• Paper Filers: Parties who choose to
file by paper must file an original and
one copy of each filing. If more than one
docket or rulemaking number appears in
the caption of this proceeding, filers
must submit two additional copies for
each additional docket or rulemaking
number.
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ADDRESSES:
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• Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
• All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th Street SW., Room TW–A325,
Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand
deliveries must be held together with
rubber bands or fasteners. Any
envelopes and boxes must be disposed
of before entering the building.
• Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9300
East Hampton Drive, Capitol Heights,
MD 20743.
• U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 445 12th Street SW.,
Washington DC 20554.
People with Disabilities: To request
materials in accessible formats for
people with disabilities (braille, large
print, electronic files, audio format),
send an email to fcc504@fcc.gov or call
the Consumer & Governmental Affairs
Bureau at 202–418–0530 (voice), 202–
418–0432 (tty).
I. Introduction
1. Today the Commission takes
further steps to implement the Connect
America Fund to advance the
deployment of voice and broadbandcapable networks in rural, high-cost
areas, including extremely high-cost
areas, while ensuring that rural
Americans benefit from the historic
technology transitions that are
transforming our nation’s
communications services. The
Commission finalizes decisions to use
on a limited scale Connect America
funding for rural broadband
experiments in price cap areas that will
deploy new, robust broadband to
consumers. In the FNPRM, the
Commission seeks comment on how
best to maximize the reach of our
existing Connect America budget and
leverage non-Federal funding to extend
broadband to as many households as
possible when the Commission
implements Phase II.
II. Further Notice of Proposed
Rulemaking
2. The Commission recognized in the
USF/ICC Transformation Order, 76 FR
73830, November 29, 2011, that
universal service is a shared Federal and
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state responsibility, and that ‘‘it is
critical to our reforms’ success that
states remain key partners even as these
programs evolve and traditional roles
shift.’’ The Commission sought
comment in the Tech Transitions
FNPRM, 79 FR 11366, February 28,
2014, on how to leverage non-Federal
governmental sources of funding for the
rural broadband experiments, but did
not receive a sufficient record to enable
it to resolve the implementation details
associated with this proposal. The
Commission remains committed to
working with our state and other
governmental partners to advance our
mutually shared goals of preserving
voice service and extending broadbandcapable infrastructure to consumers
across the nation. The Commission thus
wishes to further explore how best to
maximize the reach of our existing
Connect America budget and leverage
non-Federal funding to extend
broadband to as many households as
possible.
3. The Commission now seeks more
focused comment on how to create
inducements for state action to assist in
the expansion of broadband. The
Commission seeks comment on
providing bidding credits in the Phase
II competitive bidding process that will
occur after the offer of model-based
support to price cap carriers in order to
create incentives for states to share
financial responsibility for preserving
and extending broadband-capable
infrastructure. In particular, the
Commission seeks comment on
providing a bidding credit to any bidder
that is leveraging governmental support
from non-Federal sources to lower the
amount of funding requested from the
Connect America Fund. For example,
the Commission could provide a 10
percent bidding credit in situations
where an applicant has obtained a
commitment from a non-Federal
government entity to match Federal
dollars on a four-to-one basis, and a 5
percent bidding credit an applicant has
obtained a commitment to match
Federal dollars on an eight-to-one basis.
If the Commission were to adopt such
a bidding credit, what documentation
would the bidder need to provide when
submitting its bid so that the
Commission could confirm its eligibility
for the bidding credit? For instance,
should the bidder be required to provide
a letter indicating that non-Federal
funding has been authorized, contingent
on the entity being a winning bidder?
4. For purposes of awarding such a
bidding credit, the Commission
proposes to consider all forms of nonFederal assistance, including but not
limited to support from a state universal
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service fund, state broadband authority,
other state institutions that provide
funding for communications
infrastructure development,
appropriated funds, regional and local
governmental authorities, or Tribal
government funding. The Commission
seeks comment on this proposal.
5. In order to qualify for the bidding
credit, must the matching funds be in
the form of a grant, or should the
Commission also provide a credit if the
bidder has a commitment for a loan
from the relevant state or other nonFederal governmental authority?
6. As an alternative, should the
Commission award a bidding credit to
any bidder in a state that is a net donor
to the universal service fund? This
would be simple to administer and
would provide one means of creating
greater equity between states in terms of
their respective net draws from the
fund. If the Commission were to adopt
such an approach, it proposes to utilize
the most recent Universal Service
Monitoring Report to determine which
states are net donors.
III. Procedural Matters
A. Paperwork Reduction Analysis
7. The FNPRM contains proposed
new information collection
requirements. The Commission, as part
of its continuing effort to reduce
paperwork burdens, invites the general
public and OMB to comment on the
proposed information collection
requirements contained in this
document, as required by the PRA. In
addition, pursuant to the Small
Business Paperwork Relief Act, the
Commission seeks specific comment on
how the Commission might further
reduce the information collection
burden for small business concerns with
fewer than 25 employees.
B. Congressional Review Act
8. The Commission will send a copy
of the Further Notice of Proposed
Rulemaking and concurrently adopted
Report and Order to Congress and the
Government Accountability Office
pursuant to the Congressional Review
Act.
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C. Initial Regulatory Flexibility Act
Analysis
9. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA), the Commission has prepared
this present Initial Regulatory
Flexibility Analysis (IRFA) of the
possible significant economic impact on
a substantial number of small entities by
the policies and rules proposed in this
Further Notice of Proposed Rulemaking
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(FNPRM). Written public comments are
requested on this IRFA. Comments must
be identified as responses to the IRFA
and must be filed by the deadlines for
comments on the FNPRM provided on
the first page of this document. The
Commission will send a copy of the
FNPRM, including this IRFA, to the
Chief Counsel for Advocacy of the Small
Business Administration (SBA). In
addition, the FNPRM and IRFA (or
summaries thereof) will be published in
the Federal Register.
1. Need for, and Objectives of, the
Proposed Rules
10. The Commission recognized in the
USF/ICC Transformation Order that
universal service is a shared federal and
state responsibility, and that ‘‘it is
critical to our reforms’ success that
states remain key partners even as these
programs evolve and traditional roles
shift.’’ The Commission remains
committed to working with our state
and other governmental partners to
advance our mutually shared goals of
preserving voice service and extending
broadband-capable infrastructure to
consumers across the nation. The
Commission thus wishes to further
explore how best to maximize the reach
of our existing Connect America budget
and leverage non-Federal governmental
funding to extend broadband to as many
households as possible. In the FNPRM
the Commission seeks comment on how
to create inducements for non-Federal
governmental action to assist in the
expansion of broadband. Specifically,
the Commission seeks comment on
providing bidding credits in the Phase
II competitive bidding process to any
bidder that is leveraging governmental
support from non-Federal sources to
lower the amount of funding requested
from the Connect America Fund.
2. Legal Basis
11. The legal basis for any action that
may be taken pursuant to the FNPRM is
contained in sections 1, 2, 4(i), 214,
218–220, 254, 303(r), 403 of the
Communications Act of 1934 as
amended, and section 706 of the
Telecommunications Act of 1996, 47
U.S.C. 151, 152, 154(i), 214, 218–220,
254, 303(r), 403, and 1302, and §§ 1.1
and 1.421 of the Commission’s rules, 47
CFR 1.1, 1.421.
3. Description and Estimate of the
Number of Small Entities to which the
Proposed Rules Will Apply
12. 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 adopted herein. The RFA
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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 ‘‘smallbusiness 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.
13. Small Businesses. Nationwide,
there are a total of approximately 28.2
million small businesses, according to
the SBA.
14. 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.
15. 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 proposed in the FNPRM.
16. 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
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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 pursuant to the FNPRM.
17. The Commission has included
small incumbent LECs in this present
RFA analysis. 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.’’ The
SBA’s Office of Advocacy contends that,
for RFA purposes, small incumbent
LECs are not dominant in their field of
operation because any such dominance
is not ‘‘national’’ in scope. The
Commission has therefore included
small incumbent LECs in this RFA
analysis, although it emphasizes that
this RFA action has no effect on
Commission analyses and
determinations in other, non-RFA
contexts.
18. Competitive Local Exchange
Carriers (competitive LECs),
Competitive Access Providers (CAPs),
Shared-Tenant Service Providers, and
Other Local Service Providers. Neither
the Commission nor the SBA has
developed a small business size
standard specifically for these service
providers. The appropriate size standard
under SBA rules is for the category
Wired Telecommunications Carriers.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees. 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 FNPRM.
19. Interexchange Carriers (IXCs).
Neither the Commission nor the SBA
has developed a size standard for small
businesses specifically applicable to
interexchange services. The closest
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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, 359 companies
reported that their primary
telecommunications service activity was
the provision of interexchange services.
Of these 359 companies, an estimated
317 have 1,500 or fewer employees and
42 have more than 1,500 employees.
Consequently, the Commission
estimates that the majority of
interexchange service providers are
small entities that may be affected by
rules adopted pursuant to the FNPRM.
20. Prepaid Calling Card Providers.
Neither the Commission nor the SBA
has developed a small business size
standard specifically for prepaid calling
card providers. The appropriate size
standard under SBA rules is for the
category Telecommunications Resellers.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees. According to Commission
data, 193 carriers have reported that
they are engaged in the provision of
prepaid calling cards. Of these, an
estimated all 193 have 1,500 or fewer
employees and none have more than
1,500 employees. Consequently, the
Commission estimates that the majority
of prepaid calling card providers are
small entities that may be affected by
rules adopted pursuant to the FNPRM.
21. Local Resellers. The SBA has
developed a small business size
standard for the category of
Telecommunications Resellers. Under
that size standard, such a business is
small if it has 1,500 or fewer employees.
According to Commission data, 213
carriers have reported that they are
engaged in the provision of local resale
services. Of these, an estimated 211
have 1,500 or fewer employees and two
have more than 1,500 employees.
Consequently, the Commission
estimates that the majority of local
resellers are small entities that may be
affected by rules adopted pursuant to
the FNPRM.
22. Toll Resellers. The SBA has
developed a small business size
standard for the category of
Telecommunications Resellers. Under
that size standard, such a business is
small if it has 1,500 or fewer employees.
According to Commission data, 881
carriers have reported that they are
engaged in the provision of toll resale
services. Of these, an estimated 857
have 1,500 or fewer employees and 24
have more than 1,500 employees.
Consequently, the Commission
estimates that the majority of toll
resellers are small entities that may be
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44355
affected by rules adopted pursuant to
the FNPRM.
23. Other Toll Carriers. Neither the
Commission nor the SBA has developed
a size standard for small businesses
specifically applicable to Other Toll
Carriers. This category includes toll
carriers that do not fall within the
categories of interexchange carriers,
operator service providers, prepaid
calling card providers, satellite service
carriers, or toll resellers. 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, 284 companies
reported that their primary
telecommunications service activity was
the provision of other toll carriage. Of
these, an estimated 279 have 1,500 or
fewer employees and five have more
than 1,500 employees. Consequently,
the Commission estimates that most
Other Toll Carriers are small entities
that may be affected by the rules and
policies adopted pursuant to the
FNPRM.
24. 800 and 800-Like Service
Subscribers. Neither the Commission
nor the SBA has developed a small
business size standard specifically for
800 and 800-like service (toll free)
subscribers. The appropriate size
standard under SBA rules is for the
category Telecommunications Resellers.
Under that size standard, such a
business is small if it has 1,500 or fewer
employees. The most reliable source of
information regarding the number of
these service subscribers appears to be
data the Commission collects on the
800, 888, 877, and 866 numbers in use.
According to the Commission’s data, as
of September 2009, the number of 800
numbers assigned was 7,860,000; the
number of 888 numbers assigned was
5,588,687; the number of 877 numbers
assigned was 4,721,866; and the number
of 866 numbers assigned was 7,867,736.
The Commission does not have data
specifying the number of these
subscribers that are not independently
owned and operated or have more than
1,500 employees, and thus are unable at
this time to estimate with greater
precision the number of toll free
subscribers that would qualify as small
businesses under the SBA size standard.
Consequently, the Commission
estimates that there are 7,860,000 or
fewer small entity 800 subscribers;
5,588,687 or fewer small entity 888
subscribers; 4,721,866 or fewer small
entity 877 subscribers; and 7,867,736 or
fewer small entity 866 subscribers.
25. Wireless Telecommunications
Carriers (except Satellite). Since 2007,
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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, the Commission
estimates that the majority of wireless
firms can be considered small.
26. Broadband Personal
Communications Service. The
broadband personal communications
service (PCS) spectrum is divided into
six frequency blocks designated A
through F, and the Commission has held
auctions for each block. The
Commission defined ‘‘small entity’’ for
Blocks C and F as an entity that has
average gross revenues of $40 million or
less in the three previous calendar
years. For Block F, an additional
classification for ‘‘very small business’’
was added and is defined as an entity
that, together with its affiliates, has
average gross revenues of not more than
$15 million for the preceding three
calendar years. These standards
defining ‘‘small entity’’ in the context of
broadband PCS auctions have been
approved by the SBA. No small
businesses, within the SBA-approved
small business size standards bid
successfully for licenses in Blocks A
and B. There were 90 winning bidders
that qualified as small entities in the
Block C auctions. A total of 93 small
and very small business bidders won
approximately 40 percent of the 1,479
licenses for Blocks D, E, and F. In 1999,
the Commission re-auctioned 347 C, E,
and F Block licenses. There were 48
small business winning bidders. In
2001, the Commission completed the
auction of 422 C and F Broadband PCS
licenses in Auction 35. Of the 35
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winning bidders in this auction, 29
qualified as ‘‘small’’ or ‘‘very small’’
businesses. Subsequent events,
concerning Auction 35, including
judicial and agency determinations,
resulted in a total of 163 C and F Block
licenses being available for grant. In
2005, the Commission completed an
auction of 188 C block licenses and 21
F block licenses in Auction 58. There
were 24 winning bidders for 217
licenses. Of the 24 winning bidders, 16
claimed small business status and won
156 licenses. In 2007, the Commission
completed an auction of 33 licenses in
the A, C, and F Blocks in Auction 71.
Of the 14 winning bidders, six were
designated entities. In 2008, the
Commission completed an auction of 20
Broadband PCS licenses in the C, D, E
and F block licenses in Auction 78.
27. Advanced Wireless Services. In
2008, the Commission conducted the
auction of Advanced Wireless Services
(‘‘AWS’’) licenses. This auction, which
as designated as Auction 78, offered 35
licenses in the AWS 1710–1755 MHz
and 2110–2155 MHz bands (AWS–1).
The AWS–1 licenses were licenses for
which there were no winning bids in
Auction 66. That same year, the
Commission completed Auction 78. A
bidder with attributed average annual
gross revenues that exceeded $15
million and did not exceed $40 million
for the preceding three years (‘‘small
business’’) received a 15 percent
discount on its winning bid. A bidder
with attributed average annual gross
revenues that did not exceed $15
million for the preceding three years
(‘‘very small business’’) received a 25
percent discount on its winning bid. A
bidder that had combined total assets of
less than $500 million and combined
gross revenues of less than $125 million
in each of the last two years qualified
for entrepreneur status. Four winning
bidders that identified themselves as
very small businesses won 17 licenses.
Three of the winning bidders that
identified themselves as a small
business won five licenses.
Additionally, one other winning bidder
that qualified for entrepreneur status
won 2 licenses.
28. Narrowband Personal
Communications Services. In 1994, the
Commission conducted an auction for
Narrowband PCS licenses. A second
auction was also conducted later in
1994. For purposes of the first two
Narrowband PCS auctions, ‘‘small
businesses’’ were entities with average
gross revenues for the prior three
calendar years of $40 million or less.
Through these auctions, the
Commission awarded a total of 41
licenses, 11 of which were obtained by
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four small businesses. To ensure
meaningful participation by small
business entities in future auctions, the
Commission adopted a two-tiered small
business size standard in the
Narrowband PCS Second Report and
Order, 65 FR 35843, June 6, 2000. A
‘‘small business’’ is an entity that,
together with affiliates and controlling
interests, has average gross revenues for
the three preceding years of not more
than $40 million. A ‘‘very small
business’’ is an entity that, together with
affiliates and controlling interests, has
average gross revenues for the three
preceding years of not more than $15
million. The SBA has approved these
small business size standards. A third
auction was conducted in 2001. Here,
five bidders won 317 (Metropolitan
Trading Areas and nationwide) licenses.
Three of these claimed status as a small
or very small entity and won 311
licenses.
29. Paging (Private and Common
Carrier). In the Paging Third Report and
Order, 64 FR 33762, June 24, 1999, the
Commission developed a small business
size standard for ‘‘small businesses’’ and
‘‘very small businesses’’ for purposes of
determining their eligibility for special
provisions such as bidding credits and
installment payments. A ‘‘small
business’’ is an entity that, together with
its affiliates and controlling principals,
has average gross revenues not
exceeding $15 million for the preceding
three years. Additionally, a ‘‘very small
business’’ is an entity that, together with
its affiliates and controlling principals,
has average gross revenues that are not
more than $3 million for the preceding
three years. The SBA has approved
these small business size standards.
According to Commission data, 291
carriers have reported that they are
engaged in Paging or Messaging Service.
Of these, an estimated 289 have 1,500 or
fewer employees, and two have more
than 1,500 employees. Consequently,
the Commission estimates that the
majority of paging providers are small
entities that may be affected by our
action. An auction of Metropolitan
Economic Area licenses commenced on
February 24, 2000, and closed on March
2, 2000. Of the 2,499 licenses auctioned,
985 were sold. Fifty-seven companies
claiming small business status won 440
licenses. A subsequent auction of MEA
and Economic Area (‘‘EA’’) licenses was
held in the year 2001. Of the 15,514
licenses auctioned, 5,323 were sold.
One hundred thirty-two companies
claiming small business status
purchased 3,724 licenses. A third
auction, consisting of 8,874 licenses in
each of 175 EAs and 1,328 licenses in
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all but three of the 51 MEAs, was held
in 2003. Seventy-seven bidders claiming
small or very small business status won
2,093 licenses. A fourth auction,
consisting of 9,603 lower and upper
paging band licenses was held in the
year 2010. Twenty-nine bidders
claiming small or very small business
status won 3,016 licenses.
30. 220 MHz Radio Service—Phase I
Licensees. The 220 MHz service has
both Phase I and Phase II licenses. Phase
I licensing was conducted by lotteries in
1992 and 1993. There are approximately
1,515 such non-nationwide licensees
and four nationwide licensees currently
authorized to operate in the 220 MHz
band. The Commission has not
developed a small business size
standard for small entities specifically
applicable to such incumbent 220 MHz
Phase I licensees. To estimate the
number of such licensees that are small
businesses, the Commission applies the
small business size standard under the
SBA rules applicable to Wireless
Telecommunications Carriers (except
Satellite). Under this category, the SBA
deems a wireless business to be small if
it has 1,500 or fewer employees. The
Commission estimates that nearly all
such licensees are small businesses
under the SBA’s small business size
standard that may be affected by rules
adopted pursuant to the FNPRM.
31. 220 MHz Radio Service—Phase II
Licensees. The 220 MHz service has
both Phase I and Phase II licenses. The
Phase II 220 MHz service is subject to
spectrum auctions. In the 220 MHz
Third Report and Order, 62 FR 15978,
April 3, 1997, the Commission adopted
a small business size standard for
‘‘small’’ and ‘‘very small’’ businesses for
purposes of determining their eligibility
for special provisions such as bidding
credits and installment payments. This
small business size standard indicates
that a ‘‘small business’’ is an entity that,
together with its affiliates and
controlling principals, has average gross
revenues not exceeding $15 million for
the preceding three years. A ‘‘very small
business’’ is an entity that, together with
its affiliates and controlling principals,
has average gross revenues that do not
exceed $3 million for the preceding
three years. The SBA has approved
these small business size standards.
Auctions of Phase II licenses
commenced on September 15, 1998, and
closed on October 22, 1998. In the first
auction, 908 licenses were auctioned in
three different-sized geographic areas:
three nationwide licenses, 30 Regional
Economic Area Group (EAG) Licenses,
and 875 Economic Area (EA) Licenses.
Of the 908 licenses auctioned, 693 were
sold. Thirty-nine small businesses won
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licenses in the first 220 MHz auction.
The second auction included 225
licenses: 216 EA licenses and 9 EAG
licenses. Fourteen companies claiming
small business status won 158 licenses.
32. Specialized Mobile Radio. The
Commission awards small business
bidding credits in auctions for
Specialized Mobile Radio (‘‘SMR’’)
geographic area licenses in the 800 MHz
and 900 MHz bands to entities that had
revenues of no more than $15 million in
each of the three previous calendar
years. The Commission awards very
small business bidding credits to
entities that had revenues of no more
than $3 million in each of the three
previous calendar years. The SBA has
approved these small business size
standards for the 800 MHz and 900 MHz
SMR Services. The Commission has
held auctions for geographic area
licenses in the 800 MHz and 900 MHz
bands. The 900 MHz SMR auction was
completed in 1996. Sixty bidders
claiming that they qualified as small
businesses under the $15 million size
standard won 263 geographic area
licenses in the 900 MHz SMR band. The
800 MHz SMR auction for the upper 200
channels was conducted in 1997. Ten
bidders claiming that they qualified as
small businesses under the $15 million
size standard won 38 geographic area
licenses for the upper 200 channels in
the 800 MHz SMR band. A second
auction for the 800 MHz band was
conducted in 2002 and included 23 BEA
licenses. One bidder claiming small
business status won five licenses.
33. The auction of the 1,053 800 MHz
SMR geographic area licenses for the
General Category channels was
conducted in 2000. Eleven bidders won
108 geographic area licenses for the
General Category channels in the 800
MHz SMR band qualified as small
businesses under the $15 million size
standard. In an auction completed in
2000, a total of 2,800 Economic Area
licenses in the lower 80 channels of the
800 MHz SMR service were awarded. Of
the 22 winning bidders, 19 claimed
small business status and won 129
licenses. Thus, combining all three
auctions, 40 winning bidders for
geographic licenses in the 800 MHz
SMR band claimed status as small
business.
34. In addition, there are numerous
incumbent site-by-site SMR licensees
and licensees with extended
implementation authorizations in the
800 and 900 MHz bands. The
Commission does not know how many
firms provide 800 MHz or 900 MHz
geographic area SMR pursuant to
extended implementation
authorizations, nor how many of these
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providers have annual revenues of no
more than $15 million. One firm has
over $15 million in revenues. In
addition, the Commission does not
know how many of these firms have
1,500 or fewer employees. The
Commission assumes, for purposes of
this analysis, that all of the remaining
existing extended implementation
authorizations are held by small
entities, as that small business size
standard is approved by the SBA.
35. Broadband Radio Service and
Educational Broadband Service.
Broadband Radio Service systems,
previously referred to as Multipoint
Distribution Service (‘‘MDS’’) and
Multichannel Multipoint Distribution
Service (‘‘MMDS’’) systems, and
‘‘wireless cable,’’ transmit video
programming to subscribers and provide
two-way high speed data operations
using the microwave frequencies of the
Broadband Radio Service (‘‘BRS’’) and
Educational Broadband Service (‘‘EBS’’)
(previously referred to as the
Instructional Television Fixed Service
(‘‘ITFS’’)). In connection with the 1996
BRS auction, the Commission
established a small business size
standard as an entity that had annual
average gross revenues of no more than
$40 million in the previous three
calendar years. The BRS auctions
resulted in 67 successful bidders
obtaining licensing opportunities for
493 Basic Trading Areas (‘‘BTAs’’). Of
the 67 auction winners, 61 met the
definition of a small business. BRS also
includes licensees of stations authorized
prior to the auction. At this time, the
Commission estimates that of the 61
small business BRS auction winners, 48
remain small business licensees. In
addition to the 48 small businesses that
hold BTA authorizations, there are
approximately 392 incumbent BRS
licensees that are considered small
entities. After adding the number of
small business auction licensees to the
number of incumbent licensees not
already counted, the Commission finds
that there are currently approximately
440 BRS licensees that are defined as
small businesses under either the SBA
or the Commission’s rules. The
Commission has adopted three levels of
bidding credits for BRS: (i) a bidder
with attributed average annual gross
revenues that exceed $15 million and do
not exceed $40 million for the preceding
three years (small business) is eligible to
receive a 15 percent discount on its
winning bid; (ii) a bidder with
attributed average annual gross revenues
that exceed $3 million and do not
exceed $15 million for the preceding
three years (very small business) is
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eligible to receive a 25 percent discount
on its winning bid; and (iii) a bidder
with attributed average annual gross
revenues that do not exceed $3 million
for the preceding three years
(entrepreneur) is eligible to receive a 35
percent discount on its winning bid. In
2009, the Commission conducted
Auction 86, which offered 78 BRS
licenses. Auction 86 concluded with ten
bidders winning 61 licenses. Of the ten,
two bidders claimed small business
status and won 4 licenses; one bidder
claimed very small business status and
won three licenses; and two bidders
claimed entrepreneur status and won
six licenses.
36. In addition, the SBA’s Cable
Television Distribution Services small
business size standard is applicable to
EBS. There are presently 2,032 EBS
licensees. All but 100 of these licenses
are held by educational institutions.
Educational institutions are included in
this analysis as small entities. Thus, the
Commission estimates that at least 1,932
licensees are small businesses. Since
2007, Cable Television Distribution
Services have been defined within the
broad economic census category of
Wired Telecommunications Carriers;
that category is defined as follows:
‘‘This industry comprises
establishments primarily engaged in
operating and/or providing access to
transmission facilities and infrastructure
that they own and/or lease for the
transmission of voice, data, text, sound,
and video using wired
telecommunications networks.
Transmission facilities may be based on
a single technology or a combination of
technologies.’’ The SBA defines a small
business size standard for this category
as any such firms having 1,500 or fewer
employees. 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
FNPRM.
37. Lower 700 MHz Band Licenses.
The Commission previously adopted
criteria for defining three groups of
small businesses for purposes of
determining their eligibility for special
provisions such as bidding credits. The
Commission defined a ‘‘small business’’
as an entity that, together with its
affiliates and controlling principals, has
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average gross revenues not exceeding
$40 million for the preceding three
years. A ‘‘very small business’’ is
defined as an entity that, together with
its affiliates and controlling principals,
has average gross revenues that are not
more than $15 million for the preceding
three years. Additionally, the Lower 700
MHz Band had a third category of small
business status for Metropolitan/Rural
Service Area (‘‘MSA/RSA’’) licenses,
identified as ‘‘entrepreneur’’ and
defined as an entity that, together with
its affiliates and controlling principals,
has average gross revenues that are not
more than $3 million for the preceding
three years. The SBA approved these
small size standards. The Commission
conducted an auction in 2002 of 740
Lower 700 MHz Band licenses (one
license in each of the 734 MSAs/RSAs
and one license in each of the six
Economic Area Groupings (EAGs)). Of
the 740 licenses available for auction,
484 licenses were sold to 102 winning
bidders. Seventy-two of the winning
bidders claimed small business, very
small business or entrepreneur status
and won a total of 329 licenses. The
Commission conducted a second Lower
700 MHz Band auction in 2003 that
included 256 licenses: 5 EAG licenses
and 476 Cellular Market Area licenses.
Seventeen winning bidders claimed
small or very small business status and
won 60 licenses, and nine winning
bidders claimed entrepreneur status and
won 154 licenses. In 2005, the
Commission completed an auction of 5
licenses in the Lower 700 MHz Band,
designated Auction 60. There were three
winning bidders for five licenses. All
three winning bidders claimed small
business status.
38. In 2007, the Commission
reexamined its rules governing the 700
MHz band in the 700 MHz Second
Report and Order, 72 FR 48814, August
24, 2007. The 700 MHz Second Report
and Order revised the band plan for the
commercial (including Guard Band) and
public safety spectrum, adopted services
rules, including stringent build-out
requirements, an open platform
requirement on the C Block, and a
requirement on the D Block licensee to
construct and operate a nationwide,
interoperable wireless broadband
network for public safety users. An
auction of A, B and E block licenses in
the Lower 700 MHz band was held in
2008. Twenty winning bidders claimed
small business status (those with
attributable average annual gross
revenues that exceed $15 million and do
not exceed $40 million for the preceding
three years). Thirty three winning
bidders claimed very small business
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status (those with attributable average
annual gross revenues that do not
exceed $15 million for the preceding
three years). In 2011, the Commission
conducted Auction 92, which offered 16
Lower 700 MHz band licenses that had
been made available in Auction 73 but
either remained unsold or were licenses
on which a winning bidder defaulted.
Two of the seven winning bidders in
Auction 92 claimed very small business
status, winning a total of four licenses.
39. Upper 700 MHz Band Licenses. In
the 700 MHz Second Report and Order,
the Commission revised its rules
regarding Upper 700 MHz band
licenses. In 2008, the Commission
conducted Auction 73 in which C and
D block licenses in the Upper 700 MHz
band were available. Three winning
bidders claimed very small business
status (those with attributable average
annual gross revenues that do not
exceed $15 million for the preceding
three years).
40. 700 MHz Guard Band Licensees.
In the 700 MHz Guard Band Order, 65
FR 17594, April 4, 2000, the
Commission adopted a small business
size standard for ‘‘small businesses’’ and
‘‘very small businesses’’ for purposes of
determining their eligibility for special
provisions such as bidding credits and
installment payments. A ‘‘small
business’’ is an entity that, together with
its affiliates and controlling principals,
has average gross revenues not
exceeding $40 million for the preceding
three years. Additionally, a ‘‘very small
business’’ is an entity that, together with
its affiliates and controlling principals,
has average gross revenues that are not
more than $15 million for the preceding
three years. An auction of 52 Major
Economic Area (MEA) licenses
commenced on September 6, 2000, and
closed on September 21, 2000. Of the
104 licenses auctioned, 96 licenses were
sold to nine bidders. Five of these
bidders were small businesses that won
a total of 26 licenses. A second auction
of 700 MHz Guard Band licenses
commenced on February 13, 2001 and
closed on February 21, 2001. All eight
of the licenses auctioned were sold to
three bidders. One of these bidders was
a small business that won a total of two
licenses.
41. Cellular Radiotelephone Service.
Auction 77 was held to resolve one
group of mutually exclusive
applications for Cellular Radiotelephone
Service licenses for unserved areas in
New Mexico. Bidding credits for
designated entities were not available in
Auction 77. In 2008, the Commission
completed the closed auction of one
unserved service area in the Cellular
Radiotelephone Service, designated as
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Auction 77. Auction 77 concluded with
one provisionally winning bid for the
unserved area totaling $25,002.
42. Private Land Mobile Radio
(‘‘PLMR’’). PLMR systems serve an
essential role in a range of industrial,
business, land transportation, and
public safety activities. These radios are
used by companies of all sizes operating
in all U.S. business categories, and are
often used in support of the licensee’s
primary (non-telecommunications)
business operations. For the purpose of
determining whether a licensee of a
PLMR system is a small business as
defined by the SBA, the Commission
uses the broad census category, Wireless
Telecommunications Carriers (except
Satellite). This definition provides that
a small entity is any such entity
employing no more than 1,500 persons.
The Commission does not require PLMR
licensees to disclose information about
number of employees, so the
Commission does not have information
that could be used to determine how
many PLMR licensees constitute small
entities under this definition. The
Commission notes that PLMR licensees
generally use the licensed facilities in
support of other business activities, and
therefore, it would also be helpful to
assess PLMR licensees under the
standards applied to the particular
industry subsector to which the licensee
belongs.
43. As of March 2010, there were
424,162 PLMR licensees operating
921,909 transmitters in the PLMR bands
below 512 MHz. The Commission notes
that any entity engaged in a commercial
activity is eligible to hold a PLMR
license, and that any revised rules in
this context could therefore potentially
impact small entities covering a great
variety of industries.
44. Rural Radiotelephone Service. The
Commission has not adopted a size
standard for small businesses specific to
the Rural Radiotelephone Service. A
significant subset of the Rural
Radiotelephone Service is the Basic
Exchange Telephone Radio System
(BETRS). In the present context, the
Commission will use the SBA’s small
business size standard applicable to
Wireless Telecommunications Carriers
(except Satellite), i.e., an entity
employing no more than 1,500 persons.
There are approximately 1,000 licensees
in the Rural Radiotelephone Service,
and the Commission estimates that there
are 1,000 or fewer small entity licensees
in the Rural Radiotelephone Service that
may be affected by the rules and
policies proposed herein.
45. Air-Ground Radiotelephone
Service. The Commission has not
adopted a small business size standard
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specific to the Air-Ground
Radiotelephone Service. The
Commission will use SBA’s small
business size standard applicable to
Wireless Telecommunications Carriers
(except Satellite), i.e., an entity
employing no more than 1,500 persons.
There are approximately 100 licensees
in the Air-Ground Radiotelephone
Service, and the Commission estimates
that almost all of them qualify as small
under the SBA small business size
standard and may be affected by rules
adopted pursuant to the FNPRM.
46. Aviation and Marine Radio
Services. Small businesses in the
aviation and marine radio services use
a very high frequency (VHF) marine or
aircraft radio and, as appropriate, an
emergency position-indicating radio
beacon (and/or radar) or an emergency
locator transmitter. The Commission has
not developed a small business size
standard specifically applicable to these
small businesses. For purposes of this
analysis, the Commission uses the SBA
small business size standard for the
category Wireless Telecommunications
Carriers (except Satellite), which is
1,500 or fewer employees. Census data
for 2007, which supersede data
contained in the 2002 Census, show that
there were 1,383 firms that operated that
year. Of those 1,383, 1,368 had fewer
than 100 employees, and 15 firms had
more than 100 employees. Most
applicants for recreational licenses are
individuals. Approximately 581,000
ship station licensees and 131,000
aircraft station licensees operate
domestically and are not subject to the
radio carriage requirements of any
statute or treaty. For purposes of our
evaluations in this analysis, the
Commission estimates that there are up
to approximately 712,000 licensees that
are small businesses (or individuals)
under the SBA standard. In addition,
between December 3, 1998 and
December 14, 1998, the Commission
held an auction of 42 VHF Public Coast
licenses in the 157.1875–157.4500 MHz
(ship transmit) and 161.775–162.0125
MHz (coast transmit) bands. For
purposes of the auction, the
Commission defined a ‘‘small’’ business
as an entity that, together with
controlling interests and affiliates, has
average gross revenues for the preceding
three years not to exceed $15 million
dollars. In addition, a ‘‘very small’’
business is one that, together with
controlling interests and affiliates, has
average gross revenues for the preceding
three years not to exceed $3 million
dollars. There are approximately 10,672
licensees in the Marine Coast Service,
and the Commission estimates that
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almost all of them qualify as ‘‘small’’
businesses under the above special
small business size standards and may
be affected by rules adopted pursuant to
the FNPRM.
47. Fixed Microwave Services. Fixed
microwave services include common
carrier, private operational-fixed, and
broadcast auxiliary radio services. At
present, there are approximately 22,015
common carrier fixed licensees and
61,670 private operational-fixed
licensees and broadcast auxiliary radio
licensees in the microwave services.
The Commission has not created a size
standard for a small business
specifically with respect to fixed
microwave services. For purposes of
this analysis, the Commission uses the
SBA small business size standard for
Wireless Telecommunications Carriers
(except Satellite), which is 1,500 or
fewer employees. The Commission does
not have data specifying the number of
these licensees that have more than
1,500 employees, and thus is unable at
this time to estimate with greater
precision the number of fixed
microwave service licensees that would
qualify as small business concerns
under the SBA’s small business size
standard. Consequently, the
Commission estimates that there are up
to 22,015 common carrier fixed
licensees and up to 61,670 private
operational-fixed licensees and
broadcast auxiliary radio licensees in
the microwave services that may be
small and may be affected by the rules
and policies adopted herein. The
Commission notes, however, that the
common carrier microwave fixed
licensee category includes some large
entities.
48. Offshore Radiotelephone Service.
This service operates on several UHF
television broadcast channels that are
not used for television broadcasting in
the coastal areas of states bordering the
Gulf of Mexico. There are presently
approximately 55 licensees in this
service. The Commission is unable to
estimate at this time the number of
licensees that would qualify as small
under the SBA’s small business size
standard for the category of Wireless
Telecommunications Carriers (except
Satellite). Under that SBA small
business size standard, a business is
small if it has 1,500 or fewer employees.
Census data for 2007, which supersede
data contained in the 2002 Census,
show that there were 1,383 firms that
operated that year. Of those 1,383, 1,368
had fewer than 100 employees, and 15
firms had more than 100 employees.
Thus, under this category and the
associated small business size standard,
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the majority of firms can be considered
small.
49. 39 GHz Service. The Commission
created a special small business size
standard for 39 GHz licenses—an entity
that has average gross revenues of $40
million or less in the three previous
calendar years. An additional size
standard for ‘‘very small business’’ is: an
entity that, together with affiliates, has
average gross revenues of not more than
$15 million for the preceding three
calendar years. The SBA has approved
these small business size standards. The
auction of the 2,173 39 GHz licenses
began on April 12, 2000 and closed on
May 8, 2000. The 18 bidders who
claimed small business status won 849
licenses. Consequently, the Commission
estimates that 18 or fewer 39 GHz
licensees are small entities that may be
affected by rules adopted pursuant to
the FNPRM.
50. 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 reauctioned 161 licenses; there were 32
small and very small businesses
winning that won 119 licenses.
51. 218–219 MHz Service. The first
auction of 218–219 MHz spectrum
resulted in 170 entities winning licenses
for 594 Metropolitan Statistical Area
(MSA) licenses. Of the 594 licenses, 557
were won by entities qualifying as a
small business. For that auction, the
small business size standard was an
entity that, together with its affiliates,
has no more than a $6 million net worth
and, after federal income taxes
(excluding any carry over losses), has no
more than $2 million in annual profits
each year for the previous two years. In
the 218–219 MHz Report and Order and
Memorandum Opinion and Order, 64
FR 59656, November 3, 1999, the
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Commission established a small
business size standard for a ‘‘small
business’’ as an entity that, together
with its affiliates and persons or entities
that hold interests in such an entity and
their affiliates, has average annual gross
revenues not to exceed $15 million for
the preceding three years. A ‘‘very small
business’’ is defined as an entity that,
together with its affiliates and persons
or entities that hold interests in such an
entity and its affiliates, has average
annual gross revenues not to exceed $3
million for the preceding three years.
These size standards will be used in
future auctions of 218–219 MHz
spectrum.
52. 2.3 GHz Wireless Communications
Services. This service can be used for
fixed, mobile, radiolocation, and digital
audio broadcasting satellite uses. The
Commission defined ‘‘small business’’
for the wireless communications
services (‘‘WCS’’) auction as an entity
with average gross revenues of $40
million for each of the three preceding
years, and a ‘‘very small business’’ as an
entity with average gross revenues of
$15 million for each of the three
preceding years. The SBA has approved
these definitions. The Commission
auctioned geographic area licenses in
the WCS service. In the auction, which
was conducted in 1997, there were
seven bidders that won 31 licenses that
qualified as very small business entities,
and one bidder that won one license
that qualified as a small business entity.
53. 1670–1675 MHz Band. An auction
for one license in the 1670–1675 MHz
band was conducted in 2003. The
Commission defined a ‘‘small business’’
as an entity with attributable average
annual gross revenues of not more than
$40 million for the preceding three
years and thus would be eligible for a
15 percent discount on its winning bid
for the 1670–1675 MHz band license.
Further, the Commission defined a
‘‘very small business’’ as an entity with
attributable average annual gross
revenues of not more than $15 million
for the preceding three years and thus
would be eligible to receive a 25 percent
discount on its winning bid for the
1670–1675 MHz band license. One
license was awarded. The winning
bidder was not a small entity.
54. 3650–3700 MHz band. In March
2005, the Commission released a Report
and Order and Memorandum Opinion
and Order that provides for nationwide,
non-exclusive licensing of terrestrial
operations, utilizing contention-based
technologies, in the 3650 MHz band
(i.e., 3650–3700 MHz). As of April 2010,
more than 1,270 licenses have been
granted and more than 7,433 sites have
been registered. The Commission has
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not developed a definition of small
entities applicable to 3650–3700 MHz
band nationwide, non-exclusive
licensees. However, the Commission
estimates that the majority of these
licensees are Internet Access Service
Providers (ISPs) and that most of those
licensees are small businesses.
55. 24 GHz—Incumbent Licensees.
This analysis may affect incumbent
licensees who were relocated to the 24
GHz band from the 18 GHz band, and
applicants who wish to provide services
in the 24 GHz band. For this service, the
Commission uses the SBA small
business size standard for the category
‘‘Wireless Telecommunications Carriers
(except satellite),’’ which is 1,500 or
fewer employees. To gauge small
business prevalence for these cable
services the Commission must,
however, use the most current census
data. Census data for 2007, which
supersede data contained in the 2002
Census, show that there were 1,383
firms that operated that year. Of those
1,383, 1,368 had fewer than 100
employees, and 15 firms had more than
100 employees. Thus under this
category and the associated small
business size standard, the majority of
firms can be considered small. The
Commission notes that the Census’ use
of the classifications ‘‘firms’’ does not
track the number of ‘‘licenses’’. The
Commission believes that there are only
two licensees in the 24 GHz band that
were relocated from the 18 GHz band,
Teligent and TRW, Inc. It is our
understanding that Teligent and its
related companies have less than 1,500
employees, though this may change in
the future. TRW is not a small entity.
Thus, only one incumbent licensee in
the 24 GHz band is a small business
entity.
56. 24 GHz—Future Licensees. With
respect to new applicants in the 24 GHz
band, the size standard for ‘‘small
business’’ is an entity that, together with
controlling interests and affiliates, has
average annual gross revenues for the
three preceding years not in excess of
$15 million. ‘‘Very small business’’ in
the 24 GHz band is an entity that,
together with controlling interests and
affiliates, has average gross revenues not
exceeding $3 million for the preceding
three years. The SBA has approved
these small business size standards.
These size standards will apply to a
future 24 GHz license auction, if held.
57. Satellite Telecommunications.
Since 2007, the SBA has recognized
satellite firms within this revised
category, with a small business size
standard of $15 million. The most
current Census Bureau data are from the
economic census of 2007, and the
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Commission will use those figures to
gauge the prevalence of small
businesses in this category. Those size
standards are for the two census
categories of ‘‘Satellite
Telecommunications’’ and ‘‘Other
Telecommunications.’’ Under the
‘‘Satellite Telecommunications’’
category, a business is considered small
if it had $15 million or less in average
annual receipts. Under the ‘‘Other
Telecommunications’’ category, a
business is considered small if it had
$25 million or less in average annual
receipts.
58. The first category of Satellite
Telecommunications ‘‘comprises
establishments primarily engaged in
providing point-to-point
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.’’ For this category,
Census Bureau data for 2007 show that
there were a total of 512 firms that
operated for the entire year. Of this
total, 464 firms had annual receipts of
under $10 million, and 18 firms had
receipts of $10 million to $24,999,999.
Consequently, the Commission
estimates that the majority of Satellite
Telecommunications firms are small
entities that might be affected by rules
adopted pursuant to the FNPRM.
59. The second category of Other
Telecommunications ‘‘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.’’ For this category, Census
Bureau data for 2007 show that there
were a total of 2,383 firms that operated
for the entire year. Of this total, 2,346
firms had annual receipts of under $25
million. Consequently, the Commission
estimates that the majority of Other
Telecommunications firms are small
entities that might be affected by our
action.
60. Cable and Other Program
Distribution. Since 2007, these services
have been defined within the broad
economic census category of Wired
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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 1,000
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
FNPRM.
61. 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
FNPRM.
62. 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. The Commission notes that it
neither requests nor collects information
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on whether cable system operators are
affiliated with entities whose gross
annual revenues exceed $250 million,
and therefore it is unable to estimate
more accurately the number of cable
system operators that would qualify as
small under this size standard.
63. 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 cable systems are small
and may be affected by rules adopted
pursuant to the FNPRM. In addition, the
Commission notes that it 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
some of the OVS operators may qualify
as small entities.
64. 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
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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, the Commission
estimates that the majority of these firms
are small entities that may be affected
by rules adopted pursuant to the
FNPRM.
65. Internet Publishing and
Broadcasting and Web Search Portals.
Our action may pertain to
interconnected VoIP services, which
could be provided by entities that
provide other services such as email,
online gaming, web browsing, video
conferencing, instant messaging, and
other, similar IP-enabled services. The
Commission has not adopted a size
standard for entities that create or
provide these types of services or
applications. However, the Census
Bureau has identified firms that
‘‘primarily engaged in (1) publishing
and/or broadcasting content on the
Internet exclusively or (2) operating
Web sites that use a search engine to
generate and maintain extensive
databases of Internet addresses and
content in an easily searchable format
(and known as Web search portals).’’
The SBA has developed a small
business size standard for this category,
which is: all such firms having 500 or
fewer employees. According to Census
Bureau data for 2007, there were 2,705
firms in this category that operated for
the entire year. Of this total, 2,682 firms
had employment of 499 or fewer
employees, and 23 firms had
employment of 500 employees or more.
Consequently, the Commission
estimates that the majority of these firms
are small entities that may be affected
by rules adopted pursuant to the
FNPRM.
66. Data Processing, Hosting, and
Related Services. Entities in this
category ‘‘primarily . . . provid[e]
infrastructure for hosting or data
processing services.’’ The SBA has
developed a small business size
standard for this category; that size
standard is $25 million or less in
average annual receipts. According to
Census Bureau data for 2007, there were
8,060 firms in this category that
operated for the entire year. Of these,
7,744 had annual receipts of under
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$24,999,999. Consequently, the
Commission estimates that the majority
of these firms are small entities that may
be affected by rules adopted pursuant to
the FNPRM.
67. All Other Information Services.
The Census Bureau defines this industry
as including ‘‘establishments primarily
engaged in providing other information
services (except news syndicates,
libraries, archives, Internet publishing
and broadcasting, and Web search
portals).’’ Our action pertains to
interconnected VoIP services, which
could be provided by entities that
provide other services such as email,
online gaming, web browsing, video
conferencing, instant messaging, and
other, similar IP-enabled services. The
SBA has developed a small business
size standard for this category; that size
standard is $7.0 million or less in
average annual receipts. According to
Census Bureau data for 2007, there were
367 firms in this category that operated
for the entire year. Of these, 334 had
annual receipts of under $5.0 million,
and an additional 11 firms had receipts
of between $5 million and $9,999,999.
Consequently, the Commission
estimates that the majority of these firms
are small entities that may be affected
by our action.
4. Description of Projected Reporting,
Recordkeeping, and Other Compliance
Requirements for Small Entities
68. In the FNPRM, the Commission
seeks comment on what documentation
a bidder would need to provide when
submitting a bid for the Phase II
competitive bidding process so that the
Commission can confirm its eligibility
for the bidding credit. The Commission
seeks comment on possibly requiring
applicants to provide a letter indicating
that non-Federal funding has been
authorized, contingent on the entity
being a winner.
5. Steps Taken To Minimize the
Significant Economic Impact on Small
Entities, and Significant Alternatives
Considered
69. 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 rules for such small entities;
(3) the use of performance rather than
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design standards; and (4) an exemption
from coverage of the rule, or any part
thereof, for such small entities.’’
70. The FNPRM seeks comment from
all interested parties. The Commission
is aware that some of the proposals
under consideration may affect small
entities. Small entities are encouraged to
bring to the Commission’s attention any
specific concerns they may have with
the proposals outlined in the FNPRM.
71. In the FNPRM, the Commission
seeks comment on how to create
inducements for non-Federal
governmental action to assist in the
expansion of broadband, specifically by
providing a bidding credit in the Phase
II competitive bidding process to any
bidder that is leveraging non-Federal
governmental sources of funding to
lower the amount of funding requested
from the Connect America Fund. Such
an approach may benefit small entities.
Small entities may choose to seek out
sources of non-Federal governmental
funding to help support their projects
and gain a competitive advantage for the
Phase II competitive bidding process.
Recognizing that some small entities
lack the ability that many larger
companies have to take advantage of
economies of scale, the extra funding
and the bidding credit may make it
possible for small entities to bid for
projects that are more cost-effective than
those proposed by larger entities.
72. The Commission anticipates that
it will take into account the unique
challenges faced by small entities when
deciding whether to adopt a bidding
credit, and if so, how it will work and
what documentation entities would
need to submit to confirm their
eligibility for the bidding credit. The
Commission encourages small entities
to submit comments in response to the
FNPRM describing concrete proposals
for how the bidding credit can be
designed to accommodate small entities.
6. Federal Rules that May Duplicate,
Overlap, or Conflict With the Proposed
Rules
73. None.
D. Filing Requirements
74. Comments and Replies. Pursuant
to §§ 1.415 and 1.419 of the
Commission’s rules, interested parties
may file comments and reply comments
on or before the dates indicated on the
first page of this document. Comments
may be filed using the Commission’s
Electronic Comment Filing System
(ECFS).
• Electronic Filers: Comments may be
filed electronically using the Internet by
accessing the ECFS: https://
fjallfoss.fcc.gov/ecfs2/.
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• Paper Filers: Parties who choose to
file by paper must file an original and
one copy of each filing. Because more
than one docket number appears in the
caption of this proceeding, filers must
submit two additional copies for each
additional docket number.
• Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
• All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th Street SW., Room TW–A325,
Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand
deliveries must be held together with
rubber bands or fasteners. Any
envelopes and boxes must be disposed
of before entering the building.
• Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9300
East Hampton Drive, Capitol Heights,
MD 20743.
• U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 445 12th Street SW.,
Washington DC 20554.
75. People with Disabilities. To
request materials in accessible formats
for people with disabilities (braille,
large print, electronic files, audio
format), send an email to fcc504@fcc.gov
or call the Consumer & Governmental
Affairs Bureau at 202–418–0530 (voice),
202–418–0432 (tty).
76. Availability of Documents.
Comments, reply comments, and ex
parte submissions will be publically
available online via ECFS. These
documents will also be available for
public inspection during regular
business hours in the FCC Reference
Information Center, which is located in
Room CY–A257 at FCC Headquarters,
445 12th Street SW., Washington, DC
20554. The Reference Information
Center is open to the public Monday
through Thursday from 8:00 a.m. to 4:30
p.m. and Friday from 8:00 a.m. to 11:30
a.m.
77. Additional Information. For
additional information on this
proceeding, contact Alexander Minard
of the Wireline Competition Bureau,
Telecommunications Access Policy
Division, Alexander.Minard@fcc.gov,
(202) 418–7400.
IV. Ordering Clauses
78. Accordingly, it is ordered that,
pursuant to sections 1, 2, 4(i), 4(j), 214,
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218–220, 251, 254 and 303(r) of the
Communications Act of 1934, as
amended, and section 706 of the
Telecommunications Act of 1996, 47
U.S.C. 151, 152, 154(i), 154(j), 214, 218–
220, 251, 254, 303(r), 1302 the Further
Notice of Proposed Rulemaking in WC
Docket No. 10–90 and WC Docket No.
14–58 is adopted, effective thirty (30)
days after publication of the text or
summary thereof in the Federal
Register, except for those rules and
requirements involving Paperwork
Reduction Act burdens, which shall
become effective immediately upon
announcement in the Federal Register
of OMB approval.
79. It is further ordered, that, pursuant
to the authority contained in sections 1,
2, 4(i), 218–220, 214, 254, 303(r), 403 of
the Communications Act of 1934 as
amended, and section 706 of the
Telecommunications Act of 1996, 47
U.S.C. 151, 152, 154(i), 214, 218–220,
254, 303(r), 403, and 1302, and §§ 1.1
and 1.421 of the Commission’s rules, 47
CFR 1.1, 1.42, notice is hereby given of
the proposals and tentative conclusions
described in the Further Notice of
Proposed Rulemaking.
80. It is further ordered, that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
the FNPRM in WC Docket No.10–90 and
WC Docket No. 14–58, including the
Initial Regulatory Flexibility Analysis,
to the Chief Counsel for Advocacy of the
Small Business Administration.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2014–17986 Filed 7–30–14; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety
Administration
49 CFR Part 594
[Docket No. NHTSA–2014–0052; Notice 1]
RIN 2127–AL09
Schedule of Fees
National Highway Traffic
Safety Administration (NHTSA), DOT.
ACTION: Notice of proposed rulemaking.
AGENCY:
This document proposes fees
for Fiscal Year 2015 and until further
notice relating to the registration of
importers and the importation of motor
vehicles not certified as conforming to
the Federal motor vehicle safety
SUMMARY:
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standards (FMVSS). These fees are
needed to maintain the registered
importer (RI) program.
DATES: You should submit your
comments early enough to ensure that
Docket Management receives them not
later than September 2, 2014.
ADDRESSES: Comments should refer to
the docket and notice numbers above
and be submitted by any of the
following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
online instructions for submitting
comments.
• Mail: Docket Management Facility:
U.S. Department of Transportation, 1200
New Jersey Avenue SE., West Building
Ground Floor, Room W12–140,
Washington, DC 20590–0001.
• Hand Delivery or Courier: West
Building Ground Floor, Room W12–140,
1200 New Jersey Avenue SE., between
9 a.m. and 5 p.m. ET, Monday through
Friday, except Federal holidays.
• Fax: 202–493–2251.
Instructions: For detailed instructions
on submitting comments and additional
information on the rulemaking process,
see the Public Participation heading of
the Supplementary Information section
of this document. Note that all
comments received will be posted
without change to https://
www.regulations.gov, including any
personal information provided. Please
see the Privacy Act heading below.
Privacy Act: Anyone is able to search
the electronic form of all comments
received into any of our dockets by the
name of the individual submitting the
comment (or signing the comment, if
submitted on behalf of an association,
business, labor union, etc.). You may
review DOT’s complete Privacy Act
Statement in the Federal Register
published on April 11, 2000 (65 FR
19477–78) or you may visit https://
DocketInfo.dot.gov.
Docket: For access to the docket to
read background documents or
comments received, go to https://
www.regulations.gov or to the street
address listed above. Follow the online
instructions for accessing the dockets.
FOR FURTHER INFORMATION CONTACT:
Clint Lindsay, Office of Vehicle Safety
Compliance, NHTSA (202–366–5291).
For legal issues, you may call Nicholas
Englund, Office of Chief Counsel,
NHTSA (202–366–5263). You may call
Docket Management at 202–366–9324.
You may visit the Docket in person from
9 a.m. to 5 p.m., Monday through
Friday.
SUPPLEMENTARY INFORMATION:
E:\FR\FM\31JYP1.SGM
31JYP1
Agencies
[Federal Register Volume 79, Number 147 (Thursday, July 31, 2014)]
[Proposed Rules]
[Pages 44352-44363]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-17986]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[WC Docket Nos. 10-90, 14-58; FCC 14-98]
Connect America Fund; ETC Annual Reports and Certifications
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
(Commission) seeks comment on how best to maximize the reach of our
existing Connect America budget and leverage non-Federal funding to
extend broadband to as many households as possible when the Commission
implements Phase II. Specifically, the Commission seeks comment
regarding measures the Commission could take in the Phase II
competitive bidding process to create incentives for state and other
governmental entities to contribute funding to support the extension of
broadband-capable networks.
DATES: Comments are due on or before September 2, 2014 and reply
comments are due on or before September 15, 2014. If you anticipate
that you will be submitting comments, but find it difficult to do so
within the period of time allowed by this document, you should advise
the contact listed below as soon as possible.
[[Page 44353]]
ADDRESSES: You may submit comments, identified by either WC Docket No.
10-90 or WC Docket No. 14-58, by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web site: https://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting
comments.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by email: FCC504@fcc.gov or phone: (202) 418-
0530 or TTY: (202) 418-0432.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: Alexander Minard, Wireline Competition
Bureau, (202) 418-7400 or TTY: (202) 418-0484.
SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's
Further Notice of Proposed Rulemaking (FNPRM) in WC Docket Nos. 10-90,
14-58; FCC 14-98, adopted on July 11, 2014 and released on July 14,
2014. 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. Or at the following
Internet address: https://transition.fcc.gov/Daily_Releases/Daily_Business/2014/db0714/FCC-14-98A1.pdf. The Report and Order that was
adopted concurrently with the FNPRM will be published elsewhere in the
Federal Register.
Pursuant to Sec. Sec. 1.415 and 1.419 of the Commission's rules,
47 CFR 1.415, 1.419, interested parties may file comments and reply
comments on or before the dates indicated on the first page of this
document. Comments may be filed using the Commission's Electronic
Comment Filing System (ECFS). See Electronic Filing of Documents in
Rulemaking Proceedings, 63 FR 24121, May 1, 1998.
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: https://fjallfoss.fcc.gov/ecfs2/.
Paper Filers: Parties who choose to file by paper must
file an original and one copy of each filing. If more than one docket
or rulemaking number appears in the caption of this proceeding, filers
must submit two additional copies for each additional docket or
rulemaking number.
Filings can be sent by hand or messenger delivery, by
commercial overnight courier, or by first-class or overnight U.S.
Postal Service mail. All filings must be addressed to the Commission's
Secretary, Office of the Secretary, Federal Communications Commission.
All hand-delivered or messenger-delivered paper filings
for the Commission's Secretary must be delivered to FCC Headquarters at
445 12th Street SW., Room TW-A325, Washington, DC 20554. The filing
hours are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held
together with rubber bands or fasteners. Any envelopes and boxes must
be disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority
mail must be addressed to 445 12th Street SW., Washington DC 20554.
People with Disabilities: To request materials in accessible
formats for people with disabilities (braille, large print, electronic
files, audio format), send an email to fcc504@fcc.gov or call the
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
I. Introduction
1. Today the Commission takes further steps to implement the
Connect America Fund to advance the deployment of voice and broadband-
capable networks in rural, high-cost areas, including extremely high-
cost areas, while ensuring that rural Americans benefit from the
historic technology transitions that are transforming our nation's
communications services. The Commission finalizes decisions to use on a
limited scale Connect America funding for rural broadband experiments
in price cap areas that will deploy new, robust broadband to consumers.
In the FNPRM, the Commission seeks comment on how best to maximize the
reach of our existing Connect America budget and leverage non-Federal
funding to extend broadband to as many households as possible when the
Commission implements Phase II.
II. Further Notice of Proposed Rulemaking
2. The Commission recognized in the USF/ICC Transformation Order,
76 FR 73830, November 29, 2011, that universal service is a shared
Federal and state responsibility, and that ``it is critical to our
reforms' success that states remain key partners even as these programs
evolve and traditional roles shift.'' The Commission sought comment in
the Tech Transitions FNPRM, 79 FR 11366, February 28, 2014, on how to
leverage non-Federal governmental sources of funding for the rural
broadband experiments, but did not receive a sufficient record to
enable it to resolve the implementation details associated with this
proposal. The Commission remains committed to working with our state
and other governmental partners to advance our mutually shared goals of
preserving voice service and extending broadband-capable infrastructure
to consumers across the nation. The Commission thus wishes to further
explore how best to maximize the reach of our existing Connect America
budget and leverage non-Federal funding to extend broadband to as many
households as possible.
3. The Commission now seeks more focused comment on how to create
inducements for state action to assist in the expansion of broadband.
The Commission seeks comment on providing bidding credits in the Phase
II competitive bidding process that will occur after the offer of
model-based support to price cap carriers in order to create incentives
for states to share financial responsibility for preserving and
extending broadband-capable infrastructure. In particular, the
Commission seeks comment on providing a bidding credit to any bidder
that is leveraging governmental support from non-Federal sources to
lower the amount of funding requested from the Connect America Fund.
For example, the Commission could provide a 10 percent bidding credit
in situations where an applicant has obtained a commitment from a non-
Federal government entity to match Federal dollars on a four-to-one
basis, and a 5 percent bidding credit an applicant has obtained a
commitment to match Federal dollars on an eight-to-one basis. If the
Commission were to adopt such a bidding credit, what documentation
would the bidder need to provide when submitting its bid so that the
Commission could confirm its eligibility for the bidding credit? For
instance, should the bidder be required to provide a letter indicating
that non-Federal funding has been authorized, contingent on the entity
being a winning bidder?
4. For purposes of awarding such a bidding credit, the Commission
proposes to consider all forms of non-Federal assistance, including but
not limited to support from a state universal
[[Page 44354]]
service fund, state broadband authority, other state institutions that
provide funding for communications infrastructure development,
appropriated funds, regional and local governmental authorities, or
Tribal government funding. The Commission seeks comment on this
proposal.
5. In order to qualify for the bidding credit, must the matching
funds be in the form of a grant, or should the Commission also provide
a credit if the bidder has a commitment for a loan from the relevant
state or other non-Federal governmental authority?
6. As an alternative, should the Commission award a bidding credit
to any bidder in a state that is a net donor to the universal service
fund? This would be simple to administer and would provide one means of
creating greater equity between states in terms of their respective net
draws from the fund. If the Commission were to adopt such an approach,
it proposes to utilize the most recent Universal Service Monitoring
Report to determine which states are net donors.
III. Procedural Matters
A. Paperwork Reduction Analysis
7. The FNPRM contains proposed new information collection
requirements. The Commission, as part of its continuing effort to
reduce paperwork burdens, invites the general public and OMB to comment
on the proposed information collection requirements contained in this
document, as required by the PRA. In addition, pursuant to the Small
Business Paperwork Relief Act, the Commission seeks specific comment on
how the Commission might further reduce the information collection
burden for small business concerns with fewer than 25 employees.
B. Congressional Review Act
8. The Commission will send a copy of the Further Notice of
Proposed Rulemaking and concurrently adopted Report and Order to
Congress and the Government Accountability Office pursuant to the
Congressional Review Act.
C. Initial Regulatory Flexibility Act Analysis
9. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA), the Commission has prepared this present Initial
Regulatory Flexibility Analysis (IRFA) of the possible significant
economic impact on a substantial number of small entities by the
policies and rules proposed in this Further Notice of Proposed
Rulemaking (FNPRM). Written public comments are requested on this IRFA.
Comments must be identified as responses to the IRFA and must be filed
by the deadlines for comments on the FNPRM provided on the first page
of this document. The Commission will send a copy of the FNPRM,
including this IRFA, to the Chief Counsel for Advocacy of the Small
Business Administration (SBA). In addition, the FNPRM and IRFA (or
summaries thereof) will be published in the Federal Register.
1. Need for, and Objectives of, the Proposed Rules
10. The Commission recognized in the USF/ICC Transformation Order
that universal service is a shared federal and state responsibility,
and that ``it is critical to our reforms' success that states remain
key partners even as these programs evolve and traditional roles
shift.'' The Commission remains committed to working with our state and
other governmental partners to advance our mutually shared goals of
preserving voice service and extending broadband-capable infrastructure
to consumers across the nation. The Commission thus wishes to further
explore how best to maximize the reach of our existing Connect America
budget and leverage non-Federal governmental funding to extend
broadband to as many households as possible. In the FNPRM the
Commission seeks comment on how to create inducements for non-Federal
governmental action to assist in the expansion of broadband.
Specifically, the Commission seeks comment on providing bidding credits
in the Phase II competitive bidding process to any bidder that is
leveraging governmental support from non-Federal sources to lower the
amount of funding requested from the Connect America Fund.
2. Legal Basis
11. The legal basis for any action that may be taken pursuant to
the FNPRM is contained in sections 1, 2, 4(i), 214, 218-220, 254,
303(r), 403 of the Communications Act of 1934 as amended, and section
706 of the Telecommunications Act of 1996, 47 U.S.C. 151, 152, 154(i),
214, 218-220, 254, 303(r), 403, and 1302, and Sec. Sec. 1.1 and 1.421
of the Commission's rules, 47 CFR 1.1, 1.421.
3. Description and Estimate of the Number of Small Entities to which
the Proposed Rules Will Apply
12. 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 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.
13. Small Businesses. Nationwide, there are a total of
approximately 28.2 million small businesses, according to the SBA.
14. 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.
15. 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 proposed in the
FNPRM.
16. 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
[[Page 44355]]
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 pursuant to the FNPRM.
17. The Commission has included small incumbent LECs in this
present RFA analysis. 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.''
The SBA's Office of Advocacy contends that, for RFA purposes, small
incumbent LECs are not dominant in their field of operation because any
such dominance is not ``national'' in scope. The Commission has
therefore included small incumbent LECs in this RFA analysis, although
it emphasizes that this RFA action has no effect on Commission analyses
and determinations in other, non-RFA contexts.
18. Competitive Local Exchange Carriers (competitive LECs),
Competitive Access Providers (CAPs), Shared-Tenant Service Providers,
and Other Local Service Providers. Neither the Commission nor the SBA
has developed a small business size standard specifically for these
service providers. The appropriate size standard under SBA rules is for
the category Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer employees.
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 FNPRM.
19. Interexchange Carriers (IXCs). Neither the Commission nor the
SBA has developed a size standard for small businesses specifically
applicable to interexchange 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, 359 companies reported
that their primary telecommunications service activity was the
provision of interexchange services. Of these 359 companies, an
estimated 317 have 1,500 or fewer employees and 42 have more than 1,500
employees. Consequently, the Commission estimates that the majority of
interexchange service providers are small entities that may be affected
by rules adopted pursuant to the FNPRM.
20. Prepaid Calling Card Providers. Neither the Commission nor the
SBA has developed a small business size standard specifically for
prepaid calling card providers. The appropriate size standard under SBA
rules is for the category Telecommunications Resellers. Under that size
standard, such a business is small if it has 1,500 or fewer employees.
According to Commission data, 193 carriers have reported that they are
engaged in the provision of prepaid calling cards. Of these, an
estimated all 193 have 1,500 or fewer employees and none have more than
1,500 employees. Consequently, the Commission estimates that the
majority of prepaid calling card providers are small entities that may
be affected by rules adopted pursuant to the FNPRM.
21. Local Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees. According to Commission data, 213 carriers have reported
that they are engaged in the provision of local resale services. Of
these, an estimated 211 have 1,500 or fewer employees and two have more
than 1,500 employees. Consequently, the Commission estimates that the
majority of local resellers are small entities that may be affected by
rules adopted pursuant to the FNPRM.
22. Toll Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees. According to Commission data, 881 carriers have reported
that they are engaged in the provision of toll resale services. Of
these, an estimated 857 have 1,500 or fewer employees and 24 have more
than 1,500 employees. Consequently, the Commission estimates that the
majority of toll resellers are small entities that may be affected by
rules adopted pursuant to the FNPRM.
23. Other Toll Carriers. Neither the Commission nor the SBA has
developed a size standard for small businesses specifically applicable
to Other Toll Carriers. This category includes toll carriers that do
not fall within the categories of interexchange carriers, operator
service providers, prepaid calling card providers, satellite service
carriers, or toll resellers. 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, 284 companies reported that their primary
telecommunications service activity was the provision of other toll
carriage. Of these, an estimated 279 have 1,500 or fewer employees and
five have more than 1,500 employees. Consequently, the Commission
estimates that most Other Toll Carriers are small entities that may be
affected by the rules and policies adopted pursuant to the FNPRM.
24. 800 and 800-Like Service Subscribers. Neither the Commission
nor the SBA has developed a small business size standard specifically
for 800 and 800-like service (toll free) subscribers. The appropriate
size standard under SBA rules is for the category Telecommunications
Resellers. Under that size standard, such a business is small if it has
1,500 or fewer employees. The most reliable source of information
regarding the number of these service subscribers appears to be data
the Commission collects on the 800, 888, 877, and 866 numbers in use.
According to the Commission's data, as of September 2009, the number of
800 numbers assigned was 7,860,000; the number of 888 numbers assigned
was 5,588,687; the number of 877 numbers assigned was 4,721,866; and
the number of 866 numbers assigned was 7,867,736. The Commission does
not have data specifying the number of these subscribers that are not
independently owned and operated or have more than 1,500 employees, and
thus are unable at this time to estimate with greater precision the
number of toll free subscribers that would qualify as small businesses
under the SBA size standard. Consequently, the Commission estimates
that there are 7,860,000 or fewer small entity 800 subscribers;
5,588,687 or fewer small entity 888 subscribers; 4,721,866 or fewer
small entity 877 subscribers; and 7,867,736 or fewer small entity 866
subscribers.
25. Wireless Telecommunications Carriers (except Satellite). Since
2007,
[[Page 44356]]
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, the Commission estimates that the majority
of wireless firms can be considered small.
26. Broadband Personal Communications Service. The broadband
personal communications service (PCS) spectrum is divided into six
frequency blocks designated A through F, and the Commission has held
auctions for each block. The Commission defined ``small entity'' for
Blocks C and F as an entity that has average gross revenues of $40
million or less in the three previous calendar years. For Block F, an
additional classification for ``very small business'' was added and is
defined as an entity that, together with its affiliates, has average
gross revenues of not more than $15 million for the preceding three
calendar years. These standards defining ``small entity'' in the
context of broadband PCS auctions have been approved by the SBA. No
small businesses, within the SBA-approved small business size standards
bid successfully for licenses in Blocks A and B. There were 90 winning
bidders that qualified as small entities in the Block C auctions. A
total of 93 small and very small business bidders won approximately 40
percent of the 1,479 licenses for Blocks D, E, and F. In 1999, the
Commission re-auctioned 347 C, E, and F Block licenses. There were 48
small business winning bidders. In 2001, the Commission completed the
auction of 422 C and F Broadband PCS licenses in Auction 35. Of the 35
winning bidders in this auction, 29 qualified as ``small'' or ``very
small'' businesses. Subsequent events, concerning Auction 35, including
judicial and agency determinations, resulted in a total of 163 C and F
Block licenses being available for grant. In 2005, the Commission
completed an auction of 188 C block licenses and 21 F block licenses in
Auction 58. There were 24 winning bidders for 217 licenses. Of the 24
winning bidders, 16 claimed small business status and won 156 licenses.
In 2007, the Commission completed an auction of 33 licenses in the A,
C, and F Blocks in Auction 71. Of the 14 winning bidders, six were
designated entities. In 2008, the Commission completed an auction of 20
Broadband PCS licenses in the C, D, E and F block licenses in Auction
78.
27. Advanced Wireless Services. In 2008, the Commission conducted
the auction of Advanced Wireless Services (``AWS'') licenses. This
auction, which as designated as Auction 78, offered 35 licenses in the
AWS 1710-1755 MHz and 2110-2155 MHz bands (AWS-1). The AWS-1 licenses
were licenses for which there were no winning bids in Auction 66. That
same year, the Commission completed Auction 78. A bidder with
attributed average annual gross revenues that exceeded $15 million and
did not exceed $40 million for the preceding three years (``small
business'') received a 15 percent discount on its winning bid. A bidder
with attributed average annual gross revenues that did not exceed $15
million for the preceding three years (``very small business'')
received a 25 percent discount on its winning bid. A bidder that had
combined total assets of less than $500 million and combined gross
revenues of less than $125 million in each of the last two years
qualified for entrepreneur status. Four winning bidders that identified
themselves as very small businesses won 17 licenses. Three of the
winning bidders that identified themselves as a small business won five
licenses. Additionally, one other winning bidder that qualified for
entrepreneur status won 2 licenses.
28. Narrowband Personal Communications Services. In 1994, the
Commission conducted an auction for Narrowband PCS licenses. A second
auction was also conducted later in 1994. For purposes of the first two
Narrowband PCS auctions, ``small businesses'' were entities with
average gross revenues for the prior three calendar years of $40
million or less. Through these auctions, the Commission awarded a total
of 41 licenses, 11 of which were obtained by four small businesses. To
ensure meaningful participation by small business entities in future
auctions, the Commission adopted a two-tiered small business size
standard in the Narrowband PCS Second Report and Order, 65 FR 35843,
June 6, 2000. A ``small business'' is an entity that, together with
affiliates and controlling interests, has average gross revenues for
the three preceding years of not more than $40 million. A ``very small
business'' is an entity that, together with affiliates and controlling
interests, has average gross revenues for the three preceding years of
not more than $15 million. The SBA has approved these small business
size standards. A third auction was conducted in 2001. Here, five
bidders won 317 (Metropolitan Trading Areas and nationwide) licenses.
Three of these claimed status as a small or very small entity and won
311 licenses.
29. Paging (Private and Common Carrier). In the Paging Third Report
and Order, 64 FR 33762, June 24, 1999, the Commission developed a small
business size standard for ``small businesses'' and ``very small
businesses'' for purposes of determining their eligibility for special
provisions such as bidding credits and installment payments. A ``small
business'' is an entity that, together with its affiliates and
controlling principals, has average gross revenues not exceeding $15
million for the preceding three years. Additionally, a ``very small
business'' is an entity that, together with its affiliates and
controlling principals, has average gross revenues that are not more
than $3 million for the preceding three years. The SBA has approved
these small business size standards. According to Commission data, 291
carriers have reported that they are engaged in Paging or Messaging
Service. Of these, an estimated 289 have 1,500 or fewer employees, and
two have more than 1,500 employees. Consequently, the Commission
estimates that the majority of paging providers are small entities that
may be affected by our action. An auction of Metropolitan Economic Area
licenses commenced on February 24, 2000, and closed on March 2, 2000.
Of the 2,499 licenses auctioned, 985 were sold. Fifty-seven companies
claiming small business status won 440 licenses. A subsequent auction
of MEA and Economic Area (``EA'') licenses was held in the year 2001.
Of the 15,514 licenses auctioned, 5,323 were sold. One hundred thirty-
two companies claiming small business status purchased 3,724 licenses.
A third auction, consisting of 8,874 licenses in each of 175 EAs and
1,328 licenses in
[[Page 44357]]
all but three of the 51 MEAs, was held in 2003. Seventy-seven bidders
claiming small or very small business status won 2,093 licenses. A
fourth auction, consisting of 9,603 lower and upper paging band
licenses was held in the year 2010. Twenty-nine bidders claiming small
or very small business status won 3,016 licenses.
30. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service
has both Phase I and Phase II licenses. Phase I licensing was conducted
by lotteries in 1992 and 1993. There are approximately 1,515 such non-
nationwide licensees and four nationwide licensees currently authorized
to operate in the 220 MHz band. The Commission has not developed a
small business size standard for small entities specifically applicable
to such incumbent 220 MHz Phase I licensees. To estimate the number of
such licensees that are small businesses, the Commission applies the
small business size standard under the SBA rules applicable to Wireless
Telecommunications Carriers (except Satellite). Under this category,
the SBA deems a wireless business to be small if it has 1,500 or fewer
employees. The Commission estimates that nearly all such licensees are
small businesses under the SBA's small business size standard that may
be affected by rules adopted pursuant to the FNPRM.
31. 220 MHz Radio Service--Phase II Licensees. The 220 MHz service
has both Phase I and Phase II licenses. The Phase II 220 MHz service is
subject to spectrum auctions. In the 220 MHz Third Report and Order, 62
FR 15978, April 3, 1997, the Commission adopted a small business size
standard for ``small'' and ``very small'' businesses for purposes of
determining their eligibility for special provisions such as bidding
credits and installment payments. This small business size standard
indicates that a ``small business'' is an entity that, together with
its affiliates and controlling principals, has average gross revenues
not exceeding $15 million for the preceding three years. A ``very small
business'' is an entity that, together with its affiliates and
controlling principals, has average gross revenues that do not exceed
$3 million for the preceding three years. The SBA has approved these
small business size standards. Auctions of Phase II licenses commenced
on September 15, 1998, and closed on October 22, 1998. In the first
auction, 908 licenses were auctioned in three different-sized
geographic areas: three nationwide licenses, 30 Regional Economic Area
Group (EAG) Licenses, and 875 Economic Area (EA) Licenses. Of the 908
licenses auctioned, 693 were sold. Thirty-nine small businesses won
licenses in the first 220 MHz auction. The second auction included 225
licenses: 216 EA licenses and 9 EAG licenses. Fourteen companies
claiming small business status won 158 licenses.
32. Specialized Mobile Radio. The Commission awards small business
bidding credits in auctions for Specialized Mobile Radio (``SMR'')
geographic area licenses in the 800 MHz and 900 MHz bands to entities
that had revenues of no more than $15 million in each of the three
previous calendar years. The Commission awards very small business
bidding credits to entities that had revenues of no more than $3
million in each of the three previous calendar years. The SBA has
approved these small business size standards for the 800 MHz and 900
MHz SMR Services. The Commission has held auctions for geographic area
licenses in the 800 MHz and 900 MHz bands. The 900 MHz SMR auction was
completed in 1996. Sixty bidders claiming that they qualified as small
businesses under the $15 million size standard won 263 geographic area
licenses in the 900 MHz SMR band. The 800 MHz SMR auction for the upper
200 channels was conducted in 1997. Ten bidders claiming that they
qualified as small businesses under the $15 million size standard won
38 geographic area licenses for the upper 200 channels in the 800 MHz
SMR band. A second auction for the 800 MHz band was conducted in 2002
and included 23 BEA licenses. One bidder claiming small business status
won five licenses.
33. The auction of the 1,053 800 MHz SMR geographic area licenses
for the General Category channels was conducted in 2000. Eleven bidders
won 108 geographic area licenses for the General Category channels in
the 800 MHz SMR band qualified as small businesses under the $15
million size standard. In an auction completed in 2000, a total of
2,800 Economic Area licenses in the lower 80 channels of the 800 MHz
SMR service were awarded. Of the 22 winning bidders, 19 claimed small
business status and won 129 licenses. Thus, combining all three
auctions, 40 winning bidders for geographic licenses in the 800 MHz SMR
band claimed status as small business.
34. In addition, there are numerous incumbent site-by-site SMR
licensees and licensees with extended implementation authorizations in
the 800 and 900 MHz bands. The Commission does not know how many firms
provide 800 MHz or 900 MHz geographic area SMR pursuant to extended
implementation authorizations, nor how many of these providers have
annual revenues of no more than $15 million. One firm has over $15
million in revenues. In addition, the Commission does not know how many
of these firms have 1,500 or fewer employees. The Commission assumes,
for purposes of this analysis, that all of the remaining existing
extended implementation authorizations are held by small entities, as
that small business size standard is approved by the SBA.
35. Broadband Radio Service and Educational Broadband Service.
Broadband Radio Service systems, previously referred to as Multipoint
Distribution Service (``MDS'') and Multichannel Multipoint Distribution
Service (``MMDS'') systems, and ``wireless cable,'' transmit video
programming to subscribers and provide two-way high speed data
operations using the microwave frequencies of the Broadband Radio
Service (``BRS'') and Educational Broadband Service (``EBS'')
(previously referred to as the Instructional Television Fixed Service
(``ITFS'')). In connection with the 1996 BRS auction, the Commission
established a small business size standard as an entity that had annual
average gross revenues of no more than $40 million in the previous
three calendar years. The BRS auctions resulted in 67 successful
bidders obtaining licensing opportunities for 493 Basic Trading Areas
(``BTAs''). Of the 67 auction winners, 61 met the definition of a small
business. BRS also includes licensees of stations authorized prior to
the auction. At this time, the Commission estimates that of the 61
small business BRS auction winners, 48 remain small business licensees.
In addition to the 48 small businesses that hold BTA authorizations,
there are approximately 392 incumbent BRS licensees that are considered
small entities. After adding the number of small business auction
licensees to the number of incumbent licensees not already counted, the
Commission finds that there are currently approximately 440 BRS
licensees that are defined as small businesses under either the SBA or
the Commission's rules. The Commission has adopted three levels of
bidding credits for BRS: (i) a bidder with attributed average annual
gross revenues that exceed $15 million and do not exceed $40 million
for the preceding three years (small business) is eligible to receive a
15 percent discount on its winning bid; (ii) a bidder with attributed
average annual gross revenues that exceed $3 million and do not exceed
$15 million for the preceding three years (very small business) is
[[Page 44358]]
eligible to receive a 25 percent discount on its winning bid; and (iii)
a bidder with attributed average annual gross revenues that do not
exceed $3 million for the preceding three years (entrepreneur) is
eligible to receive a 35 percent discount on its winning bid. In 2009,
the Commission conducted Auction 86, which offered 78 BRS licenses.
Auction 86 concluded with ten bidders winning 61 licenses. Of the ten,
two bidders claimed small business status and won 4 licenses; one
bidder claimed very small business status and won three licenses; and
two bidders claimed entrepreneur status and won six licenses.
36. In addition, the SBA's Cable Television Distribution Services
small business size standard is applicable to EBS. There are presently
2,032 EBS licensees. All but 100 of these licenses are held by
educational institutions. Educational institutions are included in this
analysis as small entities. Thus, the Commission estimates that at
least 1,932 licensees are small businesses. Since 2007, Cable
Television Distribution Services have been defined within the broad
economic census category of Wired Telecommunications Carriers; that
category is defined as follows: ``This industry comprises
establishments primarily engaged in operating and/or providing access
to transmission facilities and infrastructure that they own and/or
lease for the transmission of voice, data, text, sound, and video using
wired telecommunications networks. Transmission facilities may be based
on a single technology or a combination of technologies.'' The SBA
defines a small business size standard for this category as any such
firms having 1,500 or fewer employees. 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 FNPRM.
37. Lower 700 MHz Band Licenses. The Commission previously adopted
criteria for defining three groups of small businesses for purposes of
determining their eligibility for special provisions such as bidding
credits. The Commission defined a ``small business'' as an entity that,
together with its affiliates and controlling principals, has average
gross revenues not exceeding $40 million for the preceding three years.
A ``very small business'' is defined as an entity that, together with
its affiliates and controlling principals, has average gross revenues
that are not more than $15 million for the preceding three years.
Additionally, the Lower 700 MHz Band had a third category of small
business status for Metropolitan/Rural Service Area (``MSA/RSA'')
licenses, identified as ``entrepreneur'' and defined as an entity that,
together with its affiliates and controlling principals, has average
gross revenues that are not more than $3 million for the preceding
three years. The SBA approved these small size standards. The
Commission conducted an auction in 2002 of 740 Lower 700 MHz Band
licenses (one license in each of the 734 MSAs/RSAs and one license in
each of the six Economic Area Groupings (EAGs)). Of the 740 licenses
available for auction, 484 licenses were sold to 102 winning bidders.
Seventy-two of the winning bidders claimed small business, very small
business or entrepreneur status and won a total of 329 licenses. The
Commission conducted a second Lower 700 MHz Band auction in 2003 that
included 256 licenses: 5 EAG licenses and 476 Cellular Market Area
licenses. Seventeen winning bidders claimed small or very small
business status and won 60 licenses, and nine winning bidders claimed
entrepreneur status and won 154 licenses. In 2005, the Commission
completed an auction of 5 licenses in the Lower 700 MHz Band,
designated Auction 60. There were three winning bidders for five
licenses. All three winning bidders claimed small business status.
38. In 2007, the Commission reexamined its rules governing the 700
MHz band in the 700 MHz Second Report and Order, 72 FR 48814, August
24, 2007. The 700 MHz Second Report and Order revised the band plan for
the commercial (including Guard Band) and public safety spectrum,
adopted services rules, including stringent build-out requirements, an
open platform requirement on the C Block, and a requirement on the D
Block licensee to construct and operate a nationwide, interoperable
wireless broadband network for public safety users. An auction of A, B
and E block licenses in the Lower 700 MHz band was held in 2008. Twenty
winning bidders claimed small business status (those with attributable
average annual gross revenues that exceed $15 million and do not exceed
$40 million for the preceding three years). Thirty three winning
bidders claimed very small business status (those with attributable
average annual gross revenues that do not exceed $15 million for the
preceding three years). In 2011, the Commission conducted Auction 92,
which offered 16 Lower 700 MHz band licenses that had been made
available in Auction 73 but either remained unsold or were licenses on
which a winning bidder defaulted. Two of the seven winning bidders in
Auction 92 claimed very small business status, winning a total of four
licenses.
39. Upper 700 MHz Band Licenses. In the 700 MHz Second Report and
Order, the Commission revised its rules regarding Upper 700 MHz band
licenses. In 2008, the Commission conducted Auction 73 in which C and D
block licenses in the Upper 700 MHz band were available. Three winning
bidders claimed very small business status (those with attributable
average annual gross revenues that do not exceed $15 million for the
preceding three years).
40. 700 MHz Guard Band Licensees. In the 700 MHz Guard Band Order,
65 FR 17594, April 4, 2000, the Commission adopted a small business
size standard for ``small businesses'' and ``very small businesses''
for purposes of determining their eligibility for special provisions
such as bidding credits and installment payments. A ``small business''
is an entity that, together with its affiliates and controlling
principals, has average gross revenues not exceeding $40 million for
the preceding three years. Additionally, a ``very small business'' is
an entity that, together with its affiliates and controlling
principals, has average gross revenues that are not more than $15
million for the preceding three years. An auction of 52 Major Economic
Area (MEA) licenses commenced on September 6, 2000, and closed on
September 21, 2000. Of the 104 licenses auctioned, 96 licenses were
sold to nine bidders. Five of these bidders were small businesses that
won a total of 26 licenses. A second auction of 700 MHz Guard Band
licenses commenced on February 13, 2001 and closed on February 21,
2001. All eight of the licenses auctioned were sold to three bidders.
One of these bidders was a small business that won a total of two
licenses.
41. Cellular Radiotelephone Service. Auction 77 was held to resolve
one group of mutually exclusive applications for Cellular
Radiotelephone Service licenses for unserved areas in New Mexico.
Bidding credits for designated entities were not available in Auction
77. In 2008, the Commission completed the closed auction of one
unserved service area in the Cellular Radiotelephone Service,
designated as
[[Page 44359]]
Auction 77. Auction 77 concluded with one provisionally winning bid for
the unserved area totaling $25,002.
42. Private Land Mobile Radio (``PLMR''). PLMR systems serve an
essential role in a range of industrial, business, land transportation,
and public safety activities. These radios are used by companies of all
sizes operating in all U.S. business categories, and are often used in
support of the licensee's primary (non-telecommunications) business
operations. For the purpose of determining whether a licensee of a PLMR
system is a small business as defined by the SBA, the Commission uses
the broad census category, Wireless Telecommunications Carriers (except
Satellite). This definition provides that a small entity is any such
entity employing no more than 1,500 persons. The Commission does not
require PLMR licensees to disclose information about number of
employees, so the Commission does not have information that could be
used to determine how many PLMR licensees constitute small entities
under this definition. The Commission notes that PLMR licensees
generally use the licensed facilities in support of other business
activities, and therefore, it would also be helpful to assess PLMR
licensees under the standards applied to the particular industry
subsector to which the licensee belongs.
43. As of March 2010, there were 424,162 PLMR licensees operating
921,909 transmitters in the PLMR bands below 512 MHz. The Commission
notes that any entity engaged in a commercial activity is eligible to
hold a PLMR license, and that any revised rules in this context could
therefore potentially impact small entities covering a great variety of
industries.
44. Rural Radiotelephone Service. The Commission has not adopted a
size standard for small businesses specific to the Rural Radiotelephone
Service. A significant subset of the Rural Radiotelephone Service is
the Basic Exchange Telephone Radio System (BETRS). In the present
context, the Commission will use the SBA's small business size standard
applicable to Wireless Telecommunications Carriers (except Satellite),
i.e., an entity employing no more than 1,500 persons. There are
approximately 1,000 licensees in the Rural Radiotelephone Service, and
the Commission estimates that there are 1,000 or fewer small entity
licensees in the Rural Radiotelephone Service that may be affected by
the rules and policies proposed herein.
45. Air-Ground Radiotelephone Service. The Commission has not
adopted a small business size standard specific to the Air-Ground
Radiotelephone Service. The Commission will use SBA's small business
size standard applicable to Wireless Telecommunications Carriers
(except Satellite), i.e., an entity employing no more than 1,500
persons. There are approximately 100 licensees in the Air-Ground
Radiotelephone Service, and the Commission estimates that almost all of
them qualify as small under the SBA small business size standard and
may be affected by rules adopted pursuant to the FNPRM.
46. Aviation and Marine Radio Services. Small businesses in the
aviation and marine radio services use a very high frequency (VHF)
marine or aircraft radio and, as appropriate, an emergency position-
indicating radio beacon (and/or radar) or an emergency locator
transmitter. The Commission has not developed a small business size
standard specifically applicable to these small businesses. For
purposes of this analysis, the Commission uses the SBA small business
size standard for the category Wireless Telecommunications Carriers
(except Satellite), which is 1,500 or fewer employees. Census data for
2007, which supersede data contained in the 2002 Census, show that
there were 1,383 firms that operated that year. Of those 1,383, 1,368
had fewer than 100 employees, and 15 firms had more than 100 employees.
Most applicants for recreational licenses are individuals.
Approximately 581,000 ship station licensees and 131,000 aircraft
station licensees operate domestically and are not subject to the radio
carriage requirements of any statute or treaty. For purposes of our
evaluations in this analysis, the Commission estimates that there are
up to approximately 712,000 licensees that are small businesses (or
individuals) under the SBA standard. In addition, between December 3,
1998 and December 14, 1998, the Commission held an auction of 42 VHF
Public Coast licenses in the 157.1875-157.4500 MHz (ship transmit) and
161.775-162.0125 MHz (coast transmit) bands. For purposes of the
auction, the Commission defined a ``small'' business as an entity that,
together with controlling interests and affiliates, has average gross
revenues for the preceding three years not to exceed $15 million
dollars. In addition, a ``very small'' business is one that, together
with controlling interests and affiliates, has average gross revenues
for the preceding three years not to exceed $3 million dollars. There
are approximately 10,672 licensees in the Marine Coast Service, and the
Commission estimates that almost all of them qualify as ``small''
businesses under the above special small business size standards and
may be affected by rules adopted pursuant to the FNPRM.
47. Fixed Microwave Services. Fixed microwave services include
common carrier, private operational-fixed, and broadcast auxiliary
radio services. At present, there are approximately 22,015 common
carrier fixed licensees and 61,670 private operational-fixed licensees
and broadcast auxiliary radio licensees in the microwave services. The
Commission has not created a size standard for a small business
specifically with respect to fixed microwave services. For purposes of
this analysis, the Commission uses the SBA small business size standard
for Wireless Telecommunications Carriers (except Satellite), which is
1,500 or fewer employees. The Commission does not have data specifying
the number of these licensees that have more than 1,500 employees, and
thus is unable at this time to estimate with greater precision the
number of fixed microwave service licensees that would qualify as small
business concerns under the SBA's small business size standard.
Consequently, the Commission estimates that there are up to 22,015
common carrier fixed licensees and up to 61,670 private operational-
fixed licensees and broadcast auxiliary radio licensees in the
microwave services that may be small and may be affected by the rules
and policies adopted herein. The Commission notes, however, that the
common carrier microwave fixed licensee category includes some large
entities.
48. Offshore Radiotelephone Service. This service operates on
several UHF television broadcast channels that are not used for
television broadcasting in the coastal areas of states bordering the
Gulf of Mexico. There are presently approximately 55 licensees in this
service. The Commission is unable to estimate at this time the number
of licensees that would qualify as small under the SBA's small business
size standard for the category of Wireless Telecommunications Carriers
(except Satellite). Under that SBA small business size standard, a
business is small if it has 1,500 or fewer employees. Census data for
2007, which supersede data contained in the 2002 Census, show that
there were 1,383 firms that operated that year. Of those 1,383, 1,368
had fewer than 100 employees, and 15 firms had more than 100 employees.
Thus, under this category and the associated small business size
standard,
[[Page 44360]]
the majority of firms can be considered small.
49. 39 GHz Service. The Commission created a special small business
size standard for 39 GHz licenses--an entity that has average gross
revenues of $40 million or less in the three previous calendar years.
An additional size standard for ``very small business'' is: an entity
that, together with affiliates, has average gross revenues of not more
than $15 million for the preceding three calendar years. The SBA has
approved these small business size standards. The auction of the 2,173
39 GHz licenses began on April 12, 2000 and closed on May 8, 2000. The
18 bidders who claimed small business status won 849 licenses.
Consequently, the Commission estimates that 18 or fewer 39 GHz
licensees are small entities that may be affected by rules adopted
pursuant to the FNPRM.
50. 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 licenses.
51. 218-219 MHz Service. The first auction of 218-219 MHz spectrum
resulted in 170 entities winning licenses for 594 Metropolitan
Statistical Area (MSA) licenses. Of the 594 licenses, 557 were won by
entities qualifying as a small business. For that auction, the small
business size standard was an entity that, together with its
affiliates, has no more than a $6 million net worth and, after federal
income taxes (excluding any carry over losses), has no more than $2
million in annual profits each year for the previous two years. In the
218-219 MHz Report and Order and Memorandum Opinion and Order, 64 FR
59656, November 3, 1999, the Commission established a small business
size standard for a ``small business'' as an entity that, together with
its affiliates and persons or entities that hold interests in such an
entity and their affiliates, has average annual gross revenues not to
exceed $15 million for the preceding three years. A ``very small
business'' is defined as an entity that, together with its affiliates
and persons or entities that hold interests in such an entity and its
affiliates, has average annual gross revenues not to exceed $3 million
for the preceding three years. These size standards will be used in
future auctions of 218-219 MHz spectrum.
52. 2.3 GHz Wireless Communications Services. This service can be
used for fixed, mobile, radiolocation, and digital audio broadcasting
satellite uses. The Commission defined ``small business'' for the
wireless communications services (``WCS'') auction as an entity with
average gross revenues of $40 million for each of the three preceding
years, and a ``very small business'' as an entity with average gross
revenues of $15 million for each of the three preceding years. The SBA
has approved these definitions. The Commission auctioned geographic
area licenses in the WCS service. In the auction, which was conducted
in 1997, there were seven bidders that won 31 licenses that qualified
as very small business entities, and one bidder that won one license
that qualified as a small business entity.
53. 1670-1675 MHz Band. An auction for one license in the 1670-1675
MHz band was conducted in 2003. The Commission defined a ``small
business'' as an entity with attributable average annual gross revenues
of not more than $40 million for the preceding three years and thus
would be eligible for a 15 percent discount on its winning bid for the
1670-1675 MHz band license. Further, the Commission defined a ``very
small business'' as an entity with attributable average annual gross
revenues of not more than $15 million for the preceding three years and
thus would be eligible to receive a 25 percent discount on its winning
bid for the 1670-1675 MHz band license. One license was awarded. The
winning bidder was not a small entity.
54. 3650-3700 MHz band. In March 2005, the Commission released a
Report and Order and Memorandum Opinion and Order that provides for
nationwide, non-exclusive licensing of terrestrial operations,
utilizing contention-based technologies, in the 3650 MHz band (i.e.,
3650-3700 MHz). As of April 2010, more than 1,270 licenses have been
granted and more than 7,433 sites have been registered. The Commission
has not developed a definition of small entities applicable to 3650-
3700 MHz band nationwide, non-exclusive licensees. However, the
Commission estimates that the majority of these licensees are Internet
Access Service Providers (ISPs) and that most of those licensees are
small businesses.
55. 24 GHz--Incumbent Licensees. This analysis may affect incumbent
licensees who were relocated to the 24 GHz band from the 18 GHz band,
and applicants who wish to provide services in the 24 GHz band. For
this service, the Commission uses the SBA small business size standard
for the category ``Wireless Telecommunications Carriers (except
satellite),'' which is 1,500 or fewer employees. To gauge small
business prevalence for these cable services the Commission must,
however, use the most current census data. Census data for 2007, which
supersede data contained in the 2002 Census, show that there were 1,383
firms that operated that year. Of those 1,383, 1,368 had fewer than 100
employees, and 15 firms had more than 100 employees. Thus under this
category and the associated small business size standard, the majority
of firms can be considered small. The Commission notes that the Census'
use of the classifications ``firms'' does not track the number of
``licenses''. The Commission believes that there are only two licensees
in the 24 GHz band that were relocated from the 18 GHz band, Teligent
and TRW, Inc. It is our understanding that Teligent and its related
companies have less than 1,500 employees, though this may change in the
future. TRW is not a small entity. Thus, only one incumbent licensee in
the 24 GHz band is a small business entity.
56. 24 GHz--Future Licensees. With respect to new applicants in the
24 GHz band, the size standard for ``small business'' is an entity
that, together with controlling interests and affiliates, has average
annual gross revenues for the three preceding years not in excess of
$15 million. ``Very small business'' in the 24 GHz band is an entity
that, together with controlling interests and affiliates, has average
gross revenues not exceeding $3 million for the preceding three years.
The SBA has approved these small business size standards. These size
standards will apply to a future 24 GHz license auction, if held.
57. Satellite Telecommunications. Since 2007, the SBA has
recognized satellite firms within this revised category, with a small
business size standard of $15 million. The most current Census Bureau
data are from the economic census of 2007, and the
[[Page 44361]]
Commission will use those figures to gauge the prevalence of small
businesses in this category. Those size standards are for the two
census categories of ``Satellite Telecommunications'' and ``Other
Telecommunications.'' Under the ``Satellite Telecommunications''
category, a business is considered small if it had $15 million or less
in average annual receipts. Under the ``Other Telecommunications''
category, a business is considered small if it had $25 million or less
in average annual receipts.
58. The first category of Satellite Telecommunications ``comprises
establishments primarily engaged in providing point-to-point
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.'' For this category, Census
Bureau data for 2007 show that there were a total of 512 firms that
operated for the entire year. Of this total, 464 firms had annual
receipts of under $10 million, and 18 firms had receipts of $10 million
to $24,999,999. Consequently, the Commission estimates that the
majority of Satellite Telecommunications firms are small entities that
might be affected by rules adopted pursuant to the FNPRM.
59. The second category of Other Telecommunications ``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.''
For this category, Census Bureau data for 2007 show that there were a
total of 2,383 firms that operated for the entire year. Of this total,
2,346 firms had annual receipts of under $25 million. Consequently, the
Commission estimates that the majority of Other Telecommunications
firms are small entities that might be affected by our action.
60. 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 1,000 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 FNPRM.
61. 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 FNPRM.
62. 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. The
Commission notes that it neither requests nor collects information on
whether cable system operators are affiliated with entities whose gross
annual revenues exceed $250 million, and therefore it is unable to
estimate more accurately the number of cable system operators that
would qualify as small under this size standard.
63. 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 cable
systems are small and may be affected by rules adopted pursuant to the
FNPRM. In addition, the Commission notes that it 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 some of the OVS operators may qualify as small entities.
64. 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
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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, the
Commission estimates that the majority of these firms are small
entities that may be affected by rules adopted pursuant to the FNPRM.
65. Internet Publishing and Broadcasting and Web Search Portals.
Our action may pertain to interconnected VoIP services, which could be
provided by entities that provide other services such as email, online
gaming, web browsing, video conferencing, instant messaging, and other,
similar IP-enabled services. The Commission has not adopted a size
standard for entities that create or provide these types of services or
applications. However, the Census Bureau has identified firms that
``primarily engaged in (1) publishing and/or broadcasting content on
the Internet exclusively or (2) operating Web sites that use a search
engine to generate and maintain extensive databases of Internet
addresses and content in an easily searchable format (and known as Web
search portals).'' The SBA has developed a small business size standard
for this category, which is: all such firms having 500 or fewer
employees. According to Census Bureau data for 2007, there were 2,705
firms in this category that operated for the entire year. Of this
total, 2,682 firms had employment of 499 or fewer employees, and 23
firms had employment of 500 employees or more. Consequently, the
Commission estimates that the majority of these firms are small
entities that may be affected by rules adopted pursuant to the FNPRM.
66. Data Processing, Hosting, and Related Services. Entities in
this category ``primarily . . . provid[e] infrastructure for hosting or
data processing services.'' The SBA has developed a small business size
standard for this category; that size standard is $25 million or less
in average annual receipts. According to Census Bureau data for 2007,
there were 8,060 firms in this category that operated for the entire
year. Of these, 7,744 had annual receipts of under $24,999,999.
Consequently, the Commission estimates that the majority of these firms
are small entities that may be affected by rules adopted pursuant to
the FNPRM.
67. All Other Information Services. The Census Bureau defines this
industry as including ``establishments primarily engaged in providing
other information services (except news syndicates, libraries,
archives, Internet publishing and broadcasting, and Web search
portals).'' Our action pertains to interconnected VoIP services, which
could be provided by entities that provide other services such as
email, online gaming, web browsing, video conferencing, instant
messaging, and other, similar IP-enabled services. The SBA has
developed a small business size standard for this category; that size
standard is $7.0 million or less in average annual receipts. According
to Census Bureau data for 2007, there were 367 firms in this category
that operated for the entire year. Of these, 334 had annual receipts of
under $5.0 million, and an additional 11 firms had receipts of between
$5 million and $9,999,999. Consequently, the Commission estimates that
the majority of these firms are small entities that may be affected by
our action.
4. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements for Small Entities
68. In the FNPRM, the Commission seeks comment on what
documentation a bidder would need to provide when submitting a bid for
the Phase II competitive bidding process so that the Commission can
confirm its eligibility for the bidding credit. The Commission seeks
comment on possibly requiring applicants to provide a letter indicating
that non-Federal funding has been authorized, contingent on the entity
being a winner.
5. Steps Taken To Minimize the Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
69. 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 rules for such small entities; (3) the
use of performance rather than design standards; and (4) an exemption
from coverage of the rule, or any part thereof, for such small
entities.''
70. The FNPRM seeks comment from all interested parties. The
Commission is aware that some of the proposals under consideration may
affect small entities. Small entities are encouraged to bring to the
Commission's attention any specific concerns they may have with the
proposals outlined in the FNPRM.
71. In the FNPRM, the Commission seeks comment on how to create
inducements for non-Federal governmental action to assist in the
expansion of broadband, specifically by providing a bidding credit in
the Phase II competitive bidding process to any bidder that is
leveraging non-Federal governmental sources of funding to lower the
amount of funding requested from the Connect America Fund. Such an
approach may benefit small entities. Small entities may choose to seek
out sources of non-Federal governmental funding to help support their
projects and gain a competitive advantage for the Phase II competitive
bidding process. Recognizing that some small entities lack the ability
that many larger companies have to take advantage of economies of
scale, the extra funding and the bidding credit may make it possible
for small entities to bid for projects that are more cost-effective
than those proposed by larger entities.
72. The Commission anticipates that it will take into account the
unique challenges faced by small entities when deciding whether to
adopt a bidding credit, and if so, how it will work and what
documentation entities would need to submit to confirm their
eligibility for the bidding credit. The Commission encourages small
entities to submit comments in response to the FNPRM describing
concrete proposals for how the bidding credit can be designed to
accommodate small entities.
6. Federal Rules that May Duplicate, Overlap, or Conflict With the
Proposed Rules
73. None.
D. Filing Requirements
74. Comments and Replies. Pursuant to Sec. Sec. 1.415 and 1.419 of
the Commission's rules, interested parties may file comments and reply
comments on or before the dates indicated on the first page of this
document. Comments may be filed using the Commission's Electronic
Comment Filing System (ECFS).
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: https://fjallfoss.fcc.gov/ecfs2/.
[[Page 44363]]
Paper Filers: Parties who choose to file by paper must
file an original and one copy of each filing. Because more than one
docket number appears in the caption of this proceeding, filers must
submit two additional copies for each additional docket number.
Filings can be sent by hand or messenger delivery, by
commercial overnight courier, or by first-class or overnight U.S.
Postal Service mail. All filings must be addressed to the Commission's
Secretary, Office of the Secretary, Federal Communications Commission.
All hand-delivered or messenger-delivered paper filings
for the Commission's Secretary must be delivered to FCC Headquarters at
445 12th Street SW., Room TW-A325, Washington, DC 20554. The filing
hours are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held
together with rubber bands or fasteners. Any envelopes and boxes must
be disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority
mail must be addressed to 445 12th Street SW., Washington DC 20554.
75. People with Disabilities. To request materials in accessible
formats for people with disabilities (braille, large print, electronic
files, audio format), send an email to fcc504@fcc.gov or call the
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
76. Availability of Documents. Comments, reply comments, and ex
parte submissions will be publically available online via ECFS. These
documents will also be available for public inspection during regular
business hours in the FCC Reference Information Center, which is
located in Room CY-A257 at FCC Headquarters, 445 12th Street SW.,
Washington, DC 20554. The Reference Information Center is open to the
public Monday through Thursday from 8:00 a.m. to 4:30 p.m. and Friday
from 8:00 a.m. to 11:30 a.m.
77. Additional Information. For additional information on this
proceeding, contact Alexander Minard of the Wireline Competition
Bureau, Telecommunications Access Policy Division,
Alexander.Minard@fcc.gov, (202) 418-7400.
IV. Ordering Clauses
78. Accordingly, it is ordered that, pursuant to sections 1, 2,
4(i), 4(j), 214, 218-220, 251, 254 and 303(r) of the Communications Act
of 1934, as amended, and section 706 of the Telecommunications Act of
1996, 47 U.S.C. 151, 152, 154(i), 154(j), 214, 218-220, 251, 254,
303(r), 1302 the Further Notice of Proposed Rulemaking in WC Docket No.
10-90 and WC Docket No. 14-58 is adopted, effective thirty (30) days
after publication of the text or summary thereof in the Federal
Register, except for those rules and requirements involving Paperwork
Reduction Act burdens, which shall become effective immediately upon
announcement in the Federal Register of OMB approval.
79. It is further ordered, that, pursuant to the authority
contained in sections 1, 2, 4(i), 218-220, 214, 254, 303(r), 403 of the
Communications Act of 1934 as amended, and section 706 of the
Telecommunications Act of 1996, 47 U.S.C. 151, 152, 154(i), 214, 218-
220, 254, 303(r), 403, and 1302, and Sec. Sec. 1.1 and 1.421 of the
Commission's rules, 47 CFR 1.1, 1.42, notice is hereby given of the
proposals and tentative conclusions described in the Further Notice of
Proposed Rulemaking.
80. It is further ordered, that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of the FNPRM in WC Docket No.10-90 and WC Docket No. 14-58,
including the Initial Regulatory Flexibility Analysis, to the Chief
Counsel for Advocacy of the Small Business Administration.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2014-17986 Filed 7-30-14; 8:45 am]
BILLING CODE 6712-01-P