Establishing the Digital Opportunity Data Collection, Modernizing the Form 477 Data Collection, 76949-76959 [2022-27373]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 87, Number 241 (Friday, December 16, 2022)]
[Rules and Regulations]
[Pages 76949-76959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27373]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[WC Docket Nos. 19-195, 11-10, FCC 22-93, FR ID 118659]


Establishing the Digital Opportunity Data Collection, Modernizing 
the Form 477 Data Collection

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document the Commission sunsets the collection of 
broadband deployment data through Form 477 effective upon publication 
in the Federal Register. The Commission will continue to collect 
broadband and voice subscription data using Form 477 but filers will 
submit the data through the Broadband Data Collection (BDC) system. The 
Commission also delegates authority to various Commission staff to take 
other actions related to the collection and use of Form 477 data.

DATES: Effective December 16, 2022.

ADDRESSES: Federal Communications Commission, 45 L Street NE, 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: William Holloway at 
[email protected], (202) 418-2334, Broadband Policy Task Force.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
document, Order, FCC 22-93, in WC Docket Nos. 19-195, 11-10, released 
on Dec. 9, 2022. The full text of this document is available for public 
inspection and can be downloaded at https://www.fcc.gov/document/fcc-sunsets-form-477-broadband-data-collection.
    People With Disabilities. To request materials in accessible 
formats for people with disabilities (braille, large print, electronic 
files, audio format), send an email to [email protected] or call the 
Consumer & Government Affairs Bureau at 202-418-0530 (voice), 202-418-
0432 (tty).
    Paperwork Reduction Act. This document does not contain new or 
modified information collection(s) subject to the Paperwork Reduction 
Act of 1995 (PRA), Public Law 104-13, as the requirements adopted in 
this document are statutorily exempted from the requirements of the 
PRA. As a result, the document will not be submitted to OMB for review 
under Section 3507(d) of the PRA.
    Congressional Review Act. The Commission has determined, and the 
Administrator of the Office of Information and Regulatory Affairs, 
Office of Management and Budget, concurs, that these rules are ``non-
major'' under the Congressional Review Act, 5 U.S.C. 804(2). The 
Commission will send a copy of this document to Congress and the 
Government Accountability Office pursuant to 5 U.S.C. 801(a)(1)(A).

Synopsis

    In this document, the Commission takes another step in its efforts 
to implement the Broadband Data Collection (BDC) and modernize the FCC 
Form 477 data program. Consistent with the Broadband Deployment 
Accuracy and Technological Availability Act (the Broadband DATA Act or 
the Act) and the Third Report and Order (85 FR 18124, April 7, 2021), 
the Commission sunsets the collection of broadband deployment data 
through FCC Form 477 effective upon publication of this document in the 
Federal Register.

I. Discussion

    1. Sunsetting the Collection of Broadband Deployment Data through 
Form 477. In this document, we sunset the collection of broadband 
deployment data through Form 477 effective upon publication of this 
document in the Federal Register. The Commission sought comment on 
sunsetting the Form 477 broadband deployment data collection in 2019 
and again in 2020, and indicated that it expected the new broadband 
data collection being developed would largely displace the Form 477 
process, particularly with respect to the collection of more precise 
deployment data.
    2. Since the 2019 Order and Second Further Notice (84 FR 43705, 
Sept. 23, 2019) and the Second Report and Order and Third Further 
Notice (85 FR 50886, Aug. 18, 2020), we have made significant efforts 
to improve the quality of the broadband deployment data it collects. 
The Broadband DATA Act was enacted in 2020 and required the Commission 
to take steps to develop more granular broadband maps. The Commission 
has implemented the Act by adopting orders establishing the BDC and 
requiring broadband providers to file broadband availability data based 
on standardized and precise parameters, developing the Fabric as a 
common dataset of all locations where fixed broadband services can be 
installed, and establishing processes for the verification of data 
submitted by filers and for members of the public and other entities to 
challenge the accuracy of providers' data. To implement these 
processes, we have designed, developed, and launched the necessary 
information technology systems to support the BDC, including a new 
filing interface for BDC data, a BDC help center to provide technical 
assistance, and online video tutorials and webinars explaining, among 
other things, the BDC availability data and challenge submission 
processes. Based on this effort, the first broadband data collection 
under the BDC was launched on June 30, 2022 and, on September 1, 2022, 
the first filing window for the BDC closed. The Federal Communications 
Commission (FCC or Commission) subsequently published the new data on 
November 18, 2022. At the same time, broadband providers were required 
to submit Form 477 data as of June 30, 2022 in the Form 477 filing 
interface which was also due no later than September 1, 2022.
    3. We find that it is now appropriate to sunset the collection of 
broadband deployment data through Form 477. We have made significant 
progress in implementing the BDC including the completion of the first 
BDC collection of broadband availability data and resulting publication 
of updated maps and data. We therefore now have a process in place for 
collecting more precise location-specific data from fixed broadband 
service providers and using more uniform standards for mobile broadband 
providers than the processes and standards used for the Form 477 
process. Having to file concurrent Form 477 data in addition to their 
BDC data imposes significant burdens on providers, and we find it is 
unnecessary

[[Page 76950]]

to have additional rounds of overlapping collections of BDC 
availability data and Form 477 deployment data. We disagree with those 
commenters who argue that a longer transition period is necessary to 
ensure that the BDC is well established and will provide useful data. 
Congress has provided funding and the Commission has implemented the 
complex technical systems necessary to support the BDC. In addition, we 
are confident, based on the detailed standards the Commission has 
established, and the newly released data, that we can now make 
available more granular and consistent data through the BDC and the new 
BDC maps. The BDC also incorporates verification and challenge 
processes that will help ensure that our broadband maps will improve 
over time based on input from various consumers, as well as state and 
Tribal governments and other stakeholders. We find that continuing the 
parallel collection of broadband deployment data through Form 477 based 
on parameters that we know lack sufficient detail is no longer 
necessary to support our objective of developing a more precise picture 
of broadband availability across the country. Sunsetting the collection 
of broadband deployment data through Form 477 will reduce burdens on 
providers by eliminating the need for concurrent filings in both the 
Form 477 and BDC systems. By removing the need to separately file 
deployment data in the Form 477 system, sunsetting the collection will 
also enable providers to devote more resources to the processes 
established to improve BDC data. In addition, sunsetting the collection 
of Form 477 deployment data will help ensure efficient use of 
Commission resources by allowing Commission staff to focus their 
analysis on the broadband deployment data submitted pursuant to the 
rules and processes required under the BDC. We also disagree with 
commenters who expressed support for maintaining the Form 477 census-
based broadband deployment data collection. These comments were filed 
prior to the passage of the Broadband DATA Act, and we find that the 
standards and processes that we have adopted to implement the 
requirements of the Act will ensure that we collect and make available 
to the public more useful broadband availability data than the data 
previously available through Form 477.
    4. Although we sunset the collection of Form 477 broadband 
deployment data, providers must continue to submit the subscription 
data required under Form 477. Going forward, however, the BDC system, 
rather than the Form 477 filing platform, will be used for the 
submission of both the subscription data collected for Form 477 and the 
availability data collected for the BDC. Therefore, beginning with data 
as of December 31, 2022, providers are required to submit the following 
data using the BDC filing system: fixed and mobile broadband and voice 
Form 477 subscription data, fixed and mobile BDC broadband availability 
data, BDC mobile voice availability data. The Form 477 filing system 
will no longer be used to collect new Form 477 submissions, and will 
remain open only for filers to make corrections to existing Form 477 
filings for data as of June 30, 2022 and earlier. The Form 477 
instructions will be updated to reflect the changes we adopt today.
    5. Other Matters. We recognize that the Commission currently relies 
upon information from its Form 477 data collection in other contexts, 
including, among other things, to assess the deployment of broadband 
services and the state of competition in local telecommunications 
services. We therefore delegate certain additional responsibilities 
related to transitioning away from reliance on Form 477 deployment data 
for other uses and purposes within the Commission. We delegate 
authority and direct the Wireless Telecommunications Bureau (WTB) and 
the Office of Economics and Analytics (OEA) to provide instructions to 
mobile providers that participate in the Alaska Plan on how to submit 
coverage data after the sunsetting of the Form 477 broadband deployment 
data collection, including whether to use the BDC filing system for 
submission of data currently submitted using the Form 477 filing system 
that are specific to Alaska. We delegate authority and direct the 
Wireline Competition Bureau (WCB) to provide instructions to providers 
that participate in either the Bringing Puerto Rico Together Fund or 
the Connect USVI Fund on how to submit coverage data that are specific 
to Puerto Rico and the U.S. Virgin Islands to comply with the 
requirements of those funding mechanisms. For Business Data Services 
(BDS, also formerly known as Special Access services), we delegate to 
WCB and OEA the authority to conduct a rulemaking to determine the best 
way to implement the required competitive market tests using BDC 
instead of Form 477 data. Consistent with existing delegations, we 
delegate to WCB authority to develop broadband deployment obligations 
for Connect America Fund Broadband Loop Support recipients pursuant to 
Sec.  54.308(a)(2), which currently specifies use of Form 477 data for 
certain calculations. This rulemaking authority is limited to the 
modification of existing rules and adoption of new rules as needed to 
facilitate the transition from the use of Form 477 data to the use of 
the BDC to conduct the triennial competitive market tests beginning 
with the 2026 triennial update. We also delegate additional 
responsibilities to WCB, WTB, the International Bureau (IB), and OEA as 
may be necessary related to the collection and use of Form 477 
deployment data for other similar such uses and purposes within the 
Commission.

II. Final Regulatory Flexibility Analysis

    6. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the 2019 Order and Second Further Notice released in 
August 2019 and the Second Report and Order and Third Further Notice 
released in July 2020 in this proceeding. The Commission sought written 
public comment on the proposals in the Second Further Notice and Third 
Further Notice including comments on the IRFA. No comments were filed 
addressing the IRFA. This Final Regulatory Flexibility Analysis (FRFA) 
conforms to the RFA.

Need for, and Objectives of, the Order

    7. The document continues the Commission's efforts to implement the 
Broadband Data Collection (BDC) and modernize the FCC Form 477 (Form 
477) data program. Consistent with the Broadband Deployment Accuracy 
and Technological Availability Act (Broadband DATA Act) and the Third 
Report and Order, the document sunsets the collection of broadband 
deployment data through Form 477. The document also delegates authority 
to various Commission staff to take other actions related to the 
collection and use of Form 477 data involving the Alaska Plan, the 
Bringing Together Puerto Rico Fund or Connect USVI Fund and for 
Business Data Services (BDS, formerly known as Special Access 
services).
    8. The sunset of the collection of broadband data through Form 477 
follows the Commission's inquiries in this proceeding on the conditions 
under which it would be appropriate to sunset this data collection and 
the appropriate timetable to implement the sunset, since the Commission 
expected the Form 477 process, at least with respect to the collection 
of granular deployment data to be displaced by the BDC. The Commission 
sought comment in the

[[Page 76951]]

2019 Order and Second Further Notice on discontinuing the broadband 
deployment data collection that is part of Form 477 at some point after 
the new collection has been established; the conditions and timetable 
for discontinuing the collection of broadband deployment data under 
Form 477 for both the mobile and fixed collections and whether there 
were other portions of the Form 477 collection that should be sunset.
    9. In the Second Report and Order and Third Further Notice, the 
Commission created broadband availability reporting requirements for 
fixed and mobile broadband service providers and proposed to ``continue 
the current census-based deployment data collection under Form 477 for 
at least one reporting cycle after the new granular reporting 
collection commences.'' The Commission sought comment on ``sunsetting 
the census-block broadband deployment reporting in the FCC Form 477 and 
the timing of doing so.'' Thereafter, in the Third Report and Order, 
the Commission deferred the sunsetting of the Form 477 broadband 
deployment data collection to a later, to-be-determined date after 
further refining the availability data collection requirements, 
promulgating a framework for the challenge process requirements set out 
in the Broadband DATA Act and establishing the requirements for the 
collection and submission of verified availability data from 
governmental entities and other third parties.
    10. On February 22, 2022, the Commission's Broadband Data Task 
Force (Task Force) and OEA announced the filing dates for the initial 
BDC availability data collection (coverage data as of June 30, 2022, 
must have been submitted no later than September 1, 2022). This notice 
of the initial filing date for the BDC did not alter the obligation of 
service providers to file the semiannual Form 477 filing. All service 
providers were still required to submit these data under Form 477. In 
light of the significant progress that the Commission has made in 
implementing the BDC and the conclusion of the first data collection 
into the BDC system, the Commission determined that it is now 
appropriate to sunset the collection of broadband deployment data 
through Form 477.

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

    11. There were no comments filed that specifically addressed the 
proposed rules and policies presented in the IRFAs.

Response to Comments by the Chief Counsel for Advocacy of the Small 
Business Administration

    12. Pursuant to the Small Business Jobs Act of 2010, which amended 
the RFA, the Commission is required to respond to any comments filed by 
the Chief Counsel for Advocacy of the Small Business Administration 
(SBA) and to provide a detailed statement of any change made to the 
proposed rules as a result of those comments. The Chief Counsel did not 
file comments in response to the proposed rules in this proceeding.

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

    13. 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.
    14. Small Businesses, Small Organizations, Small Governmental 
Jurisdictions. Our actions, over time, may affect small entities that 
are not easily categorized at present. We therefore describe, at the 
outset, three broad groups of small entities that could be directly 
affected herein. First, while there are industry specific size 
standards for small businesses that are used in the regulatory 
flexibility analysis, according to data from the Small Business 
Administration's (SBA) Office of Advocacy, in general a small business 
is an independent business having fewer than 500 employees. These types 
of small businesses represent 99.9% of all businesses in the United 
States, which translates to 32.5 million businesses.
    15. Next, the type of small entity described as a ``small 
organization'' is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
The Internal Revenue Service (IRS) uses a revenue benchmark of $50,000 
or less to delineate its annual electronic filing requirements for 
small exempt organizations. Nationwide, for tax year 2020, there were 
approximately 447,689 small exempt organizations in the U.S. reporting 
revenues of $50,000 or less according to the registration and tax data 
for exempt organizations available from the IRS.
    16. Finally, the small entity described as a ``small governmental 
jurisdiction'' is defined generally as ``governments of cities, 
counties, towns, townships, villages, school districts, or special 
districts, with a population of less than fifty thousand.'' U.S. Census 
Bureau data from the 2017 Census of Governments indicate there were 
90,075 local governmental jurisdictions consisting of general purpose 
governments and special purpose governments in the United States. Of 
this number, there were 36,931 general purpose governments (county, 
municipal, and town or township) with populations of less than 50,000 
and 12,040 special purpose governments--independent school districts 
with enrollment populations of less than 50,000. Accordingly, based on 
the 2017 U.S. Census of Governments data, we estimate that at least 
48,971 entities fall into the category of ``small governmental 
jurisdictions.''
Broadband internet Access Service Providers
    18. Wired Broadband internet Access Service Providers (Wired ISPs). 
Providers of wired broadband internet access service include various 
types of providers except dial-up internet access providers. Wireline 
service that terminates at an end user location or mobile device and 
enables the end user to receive information from and/or send 
information to the internet at information transfer rates exceeding 200 
kilobits per second (kbps) in at least one direction is classified as a 
broadband connection under the Commission's rules. Wired broadband 
internet services fall in the Wired Telecommunications Carriers 
industry. The SBA small business size standard for this industry 
classifies firms having 1,500 or fewer employees as small. U.S. Census 
Bureau data for 2017 show that there were 3,054 firms that operated in 
this industry for the entire year. Of this number, 2,964 firms operated 
with fewer than 250 employees.
    19. Additionally, according to Commission data on internet access 
services as of December 31, 2018, nationwide there were approximately 
2,700 providers of connections over 200 kbps in at least one direction 
using various wireline technologies. The Commission does not collect 
data on the number of employees for providers of these services, 
therefore, at this time we are not able to estimate the number of

[[Page 76952]]

providers that would qualify as small under the SBA's small business 
size standard. However, in light of the general data on fixed 
technology service providers in the Commission's 2020 Communications 
Marketplace Report, we believe that the majority of wireline internet 
access service providers can be considered small entities.
    20. Wireless Broadband internet Access Service Providers (Wireless 
ISPs or WISPs). Providers of wireless broadband internet access service 
include fixed and mobile wireless providers. The Commission defines a 
WISP as ``[a] company that provides end-users with wireless access to 
the internet[.]'' Wireless service that terminates at an end user 
location or mobile device and enables the end user to receive 
information from and/or send information to the internet at information 
transfer rates exceeding 200 kilobits per second (kbps) in at least one 
direction is classified as a broadband connection under the 
Commission's rules. Neither the SBA nor the Commission have developed a 
size standard specifically applicable to Wireless Broadband internet 
Access Service Providers. The closest applicable industry with an SBA 
small business size standard is Wireless Telecommunications Carriers 
(except Satellite). The SBA size standard for this industry classifies 
a business as small if it has 1,500 or fewer employees. U.S. Census 
Bureau data for 2017 show that there were 2,893 firms in this industry 
that operated for the entire year. Of that number, 2,837 firms employed 
fewer than 250 employees.
    21. Additionally, according to Commission data on internet access 
services as of December 31, 2018, nationwide there were approximately 
1,209 fixed wireless and 71 mobile wireless providers of connections 
over 200 kbps in at least one direction. The Commission does not 
collect data on the number of employees for providers of these 
services, therefore, at this time we are not able to estimate the 
number of providers that would qualify as small under the SBA's small 
business size standard. However, based on data in the Commission's 2020 
Communications Marketplace Report on the small number of large mobile 
wireless nationwide and regional facilities-based providers, the dozens 
of small regional facilities-based providers and the number of wireless 
mobile virtual network providers in general, as well as on terrestrial 
fixed wireless broadband providers in general, we believe that the 
majority of wireless internet access service providers can be 
considered small entities.
Wireline Providers
    22. Wired Telecommunications Carriers. The U.S. Census Bureau 
defines this industry as 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 communications networks. Transmission 
facilities may be based on a single technology or a combination of 
technologies. Establishments in this industry use the wired 
telecommunications network facilities that they operate to provide a 
variety of services, such as wired telephony services, including VoIP 
services, wired (cable) audio and video programming distribution, and 
wired broadband internet services. By exception, establishments 
providing satellite television distribution services using facilities 
and infrastructure that they operate are included in this industry. 
Wired Telecommunications Carriers are also referred to as wireline 
carriers or fixed local service providers.
    23. The SBA small business size standard for Wired 
Telecommunications Carriers classifies firms having 1,500 or fewer 
employees as small. U.S. Census Bureau data for 2017 show that there 
were 3,054 firms that operated in this industry for the entire year. Of 
this number, 2,964 firms operated with fewer than 250 employees. 
Additionally, based on Commission data in the 2021 Universal Service 
Monitoring Report, as of December 31, 2020, there were 5,183 providers 
that reported they were engaged in the provision of fixed local 
services. Of these providers, the Commission estimates that 4,737 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, most of these providers can be considered 
small entities.
    24. Local Exchange Carriers (LECs). Neither the Commission nor the 
SBA has developed a size standard for small businesses specifically 
applicable to local exchange services. Providers of these services 
include both incumbent and competitive local exchange service 
providers. Wired Telecommunications Carriers is the closest industry 
with a SBA small business size standard. Wired Telecommunications 
Carriers are also referred to as wireline carriers or fixed local 
service providers. The SBA small business size standard for Wired 
Telecommunications Carriers classifies firms having 1,500 or fewer 
employees as small. U.S. Census Bureau data for 2017 show that there 
were 3,054 firms that operated in this industry for the entire year. Of 
this number, 2,964 firms operated with fewer than 250 employees. 
Additionally, based on Commission data in the 2021 Universal Service 
Monitoring Report, as of December 31, 2020, there were 5,183 providers 
that reported they were fixed local exchange service providers. Of 
these providers, the Commission estimates that 4,737 providers have 
1,500 or fewer employees. Consequently, using the SBA's small business 
size standard, most of these providers can be considered small 
entities.
    25. Incumbent Local Exchange Carriers (Incumbent LECs). Neither the 
Commission nor the SBA have developed a small business size standard 
specifically for incumbent local exchange carriers. Wired 
Telecommunications Carriers is the closest industry with a SBA small 
business size standard. The SBA small business size standard for Wired 
Telecommunications Carriers classifies firms having 1,500 or fewer 
employees as small. U.S. Census Bureau data for 2017 show that there 
were 3,054 firms in this industry that operated for the entire year. Of 
this number, 2,964 firms operated with fewer than 250 employees. 
Additionally, based on Commission data in the 2021 Universal Service 
Monitoring Report, as of December 31, 2020, there were 1,227 providers 
that reported they were incumbent local exchange service providers. Of 
these providers, the Commission estimates that 929 providers have 1,500 
or fewer employees. Consequently, using the SBA's small business size 
standard, the Commission estimates that the majority of incumbent local 
exchange carriers can be considered small entities.
    26. Competitive Local Exchange Carriers (LECs). Neither the 
Commission nor the SBA has developed a size standard for small 
businesses specifically applicable to local exchange services. 
Providers of these services include several types of competitive local 
exchange service providers. Wired Telecommunications Carriers is the 
closest industry with a SBA small business size standard. The SBA small 
business size standard for Wired Telecommunications Carriers classifies 
firms having 1,500 or fewer employees as small. U.S. Census Bureau data 
for 2017 show that there were 3,054 firms that operated in this 
industry for the entire year. Of this number, 2,964 firms operated with 
fewer than 250 employees. Additionally, based on Commission data in the 
2021 Universal Service Monitoring Report, as of

[[Page 76953]]

December 31, 2020, there were 3,956 providers that reported they were 
competitive local exchange service providers. Of these providers, the 
Commission estimates that 3,808 providers have 1,500 or fewer 
employees. Consequently, using the SBA's small business size standard, 
most of these providers can be considered small entities.
    27. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA have developed a small business size standard specifically for 
Interexchange Carriers. Wired Telecommunications Carriers is the 
closest industry with a SBA small business size standard. The SBA small 
business size standard for Wired Telecommunications Carriers classifies 
firms having 1,500 or fewer employees as small. U.S. Census Bureau data 
for 2017 show that there were 3,054 firms that operated in this 
industry for the entire year. Of this number, 2,964 firms operated with 
fewer than 250 employees. Additionally, based on Commission data in the 
2021 Universal Service Monitoring Report, as of December 31, 2020, 
there were 151 providers that reported they were engaged in the 
provision of interexchange services. Of these providers, the Commission 
estimates that 131 providers have 1,500 or fewer employees. 
Consequently, using the SBA's small business size standard, the 
Commission estimates that the majority of providers in this industry 
can be considered small entities.
    28. Operator Service Providers (OSPs). Neither the Commission nor 
the SBA has developed a small business size standard specifically for 
operator service providers. The closest applicable industry with a SBA 
small business size standard is Wired Telecommunications Carriers. The 
SBA small business size standard classifies a business as small if it 
has 1,500 or fewer employees. U.S. Census Bureau data for 2017 show 
that there were 3,054 firms in this industry that operated for the 
entire year. Of this number, 2,964 firms operated with fewer than 250 
employees. Additionally, based on Commission data in the 2021 Universal 
Service Monitoring Report, as of December 31, 2020, there were 32 
providers that reported they were engaged in the provision of operator 
services. Of these providers, the Commission estimates that all 32 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, all of these providers can be considered 
small entities.
    29. Other Toll Carriers. Neither the Commission nor the SBA has 
developed a definition 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. Wired Telecommunications Carriers is the closest 
industry with a SBA small business size standard. The SBA small 
business size standard for Wired Telecommunications Carriers classifies 
firms having 1,500 or fewer employees as small. U.S. Census Bureau data 
for 2017 show that there were 3,054 firms in this industry that 
operated for the entire year. Of this number, 2,964 firms operated with 
fewer than 250 employees. Additionally, based on Commission data in the 
2021 Universal Service Monitoring Report, as of December 31, 2020, 
there were 115 providers that reported they were engaged in the 
provision of other toll services. Of these providers, the Commission 
estimates that 113 providers have 1,500 or fewer employees. 
Consequently, using the SBA's small business size standard, most of 
these providers can be considered small entities.
    30. Internet Service Providers (Non-Broadband). Internet access 
service providers using client-supplied telecommunications connections 
(e.g., dial-up ISPs) as well as VoIP service providers using client-
supplied telecommunications connections fall in the industry 
classification of All Other Telecommunications. The SBA small business 
size standard for this industry classifies firms with annual receipts 
of $35 million or less as small. For this industry, U.S. Census Bureau 
data for 2017 show that there were 1,079 firms in this industry that 
operated for the entire year. Of those firms, 1,039 had revenue of less 
than $25 million. Consequently, under the SBA size standard a majority 
of firms in this industry can be considered small.
Wireless Providers--Fixed and Mobile
    31. Wireless Telecommunications Carriers (except Satellite). This 
industry comprises establishments engaged in operating and maintaining 
switching and transmission facilities to provide communications via the 
airwaves. Establishments in this industry have spectrum licenses and 
provide services using that spectrum, such as cellular services, paging 
services, wireless internet access, and wireless video services. The 
SBA size standard for this industry classifies a business as small if 
it has 1,500 or fewer employees. U.S. Census Bureau data for 2017 show 
that there were 2,893 firms in this industry that operated for the 
entire year. Of that number, 2,837 firms employed fewer than 250 
employees. Additionally, based on Commission data in the 2021 Universal 
Service Monitoring Report, as of December 31, 2020, there were 797 
providers that reported they were engaged in the provision of wireless 
services. Of these providers, the Commission estimates that 715 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, most of these providers can be considered 
small entities.
    32. Wireless Communications Services. Wireless Communications 
Services (WCS) can be used for a variety of fixed, mobile, 
radiolocation, and digital audio broadcasting satellite services. 
Wireless spectrum is made available and licensed for the provision of 
wireless communications services in several frequency bands subject to 
Part 27 of the Commission's rules. Wireless Telecommunications Carriers 
(except Satellite) is the closest industry with a SBA small business 
size standard applicable to these services. The SBA small business size 
standard for this industry classifies a business as small if it has 
1,500 or fewer employees. U.S. Census Bureau data for 2017 show that 
there were 2,893 firms that operated in this industry for the entire 
year. Of this number, 2,837 firms employed fewer than 250 employees. 
Thus under the SBA size standard, the Commission estimates that a 
majority of licensees in this industry can be considered small.
    33. The Commission's small business size standards with respect to 
WCS involve eligibility for bidding credits and installment payments in 
the auction of licenses for the various frequency bands included in 
WCS. When bidding credits are adopted for the auction of licenses in 
WCS frequency bands, such credits may be available to several types of 
small businesses based average gross revenues (small, very small and 
entrepreneur) pursuant to the competitive bidding rules adopted in 
conjunction with the requirements for the auction and/or as identified 
in the designated entities section in Part 27 of the Commission's rules 
for the specific WCS frequency bands.
    34. In frequency bands where licenses were subject to auction, the 
Commission notes that as a general matter, the number of winning 
bidders that qualify as small businesses at the close of an auction 
does not necessarily represent the number of small businesses currently 
in service. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers,

[[Page 76954]]

unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these services, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
    35. 1670-1675 MHz Services. These wireless communications services 
can be used for fixed and mobile uses, except aeronautical mobile. 
Wireless Telecommunications Carriers (except Satellite) is the closest 
industry with a SBA small business size standard applicable to these 
services. The SBA size standard for this industry classifies a business 
as small if it has 1,500 or fewer employees. U.S. Census Bureau data 
for 2017 show that there were 2,893 firms that operated in this 
industry for the entire year. Of this number, 2,837 firms employed 
fewer than 250 employees. Thus under the SBA size standard, the 
Commission estimates that a majority of licensees in this industry can 
be considered small.
    36. According to Commission data as of November 2021, there were 
three active licenses in this service. The Commission's small business 
size standards with respect to 1670-1675 MHz Services involve 
eligibility for bidding credits and installment payments in the auction 
of licenses for these services. For licenses in the 1670-1675 MHz 
service band, a ``small business'' is defined as an entity that, 
together with its affiliates and controlling interests, has average 
gross revenues not exceeding $40 million for the preceding three years, 
and a ``very small business'' is defined as an entity that, together 
with its affiliates and controlling interests, has had average annual 
gross revenues not exceeding $15 million for the preceding three years. 
The 1670-1675 MHz service band auction's winning bidder did not claim 
small business status.
    37. In frequency bands where licenses were subject to auction, the 
Commission notes that as a general matter, the number of winning 
bidders that qualify as small businesses at the close of an auction 
does not necessarily represent the number of small businesses currently 
in service. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these services, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
    38. Wireless Telephony. Wireless telephony includes cellular, 
personal communications services, and specialized mobile radio 
telephony carriers. The closest applicable industry with a SBA small 
business size standard is Wireless Telecommunications Carriers (except 
Satellite). The size standard for this industry under SBA rules is that 
a business is small if it has 1,500 or fewer employees. For this 
industry, U.S. Census Bureau data for 2017 show that there were 2,893 
firms that operated for the entire year. Of this number, 2,837 firms 
employed fewer than 250 employees. Additionally, based on Commission 
data in the 2021 Universal Service Monitoring Report, as of December 
31, 2020, there were 407 providers that reported they were engaged in 
the provision of cellular, personal communications services, and 
specialized mobile radio services. Of these providers, the Commission 
estimates that 333 providers have 1,500 or fewer employees. 
Consequently, using the SBA's small business size standard, most of 
these providers can be considered small entities.
    39. Broadband Personal Communications Service. The broadband 
personal communications services (PCS) spectrum encompasses services in 
the 1850-1910 and 1930-1990 MHz bands. The closest industry with a SBA 
small business size standard applicable to these services is Wireless 
Telecommunications Carriers (except Satellite). The SBA small business 
size standard for this industry classifies a business as small if it 
has 1,500 or fewer employees. U.S. Census Bureau data for 2017 show 
that there were 2,893 firms that operated in this industry for the 
entire year. Of this number, 2,837 firms employed fewer than 250 
employees. Thus under the SBA size standard, the Commission estimates 
that a majority of licensees in this industry can be considered small.
    40. Based on Commission data as of November 2021, there were 
approximately 5,060 active licenses in the Broadband PCS service. The 
Commission's small business size standards with respect to Broadband 
PCS involve eligibility for bidding credits and installment payments in 
the auction of licenses for these services. In auctions for these 
licenses, the Commission defined ``small business'' as an entity that, 
together with its affiliates and controlling interests, has average 
gross revenues not exceeding $40 million for the preceding three years, 
and a ``very small business'' as an entity that, together with its 
affiliates and controlling interests, has had average annual gross 
revenues not exceeding $15 million for the preceding three years. 
Winning bidders claiming small business credits won Broadband PCS 
licenses in C, D, E, and F Blocks.
    41. In frequency bands where licenses were subject to auction, the 
Commission notes that as a general matter, the number of winning 
bidders that qualify as small businesses at the close of an auction 
does not necessarily represent the number of small businesses currently 
in service. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these, at this time we are not able to estimate the 
number of licensees with active licenses that would qualify as small 
under the SBA's small business size standard.
    42. Specialized Mobile Radio Licenses. Special Mobile Radio (SMR) 
licenses allow licensees to provide land mobile communications services 
(other than radiolocation services) in the 800 MHz and 900 MHz spectrum 
bands on a commercial basis including but not limited to services used 
for voice and data communications, paging, and facsimile services, to 
individuals, Federal Government entities, and other entities licensed 
under Part 90 of the Commission's rules. Wireless Telecommunications 
Carriers (except Satellite) is the closest industry with a SBA small 
business size standard applicable to these services. The SBA size 
standard for this industry classifies a business as small if it has 
1,500 or fewer employees. For this industry, U.S. Census Bureau data 
for 2017 show that there were 2,893 firms in this industry that 
operated for the entire year. Of this number, 2,837 firms employed 
fewer than 250 employees. Additionally, based on Commission data in the 
2021 Universal Service Monitoring Report, as of December 31, 2020, 
there were 119 providers that reported they were of SMR (dispatch) 
providers. Of this number, the Commission estimates that all 119 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, these 119 SMR licensees can be considered 
small entities.
    43. Based on Commission data as of December 2021, there were 3,924 
active SMR licenses. However, since the Commission does not collect 
data on the number of employees for licensees providing SMR services, 
at this time we are not able to estimate the number of

[[Page 76955]]

licensees with active licenses that would qualify as small under the 
SBA's small business size standard. Nevertheless, for purposes of this 
analysis the Commission estimates that the majority of SMR licensees 
can be considered small entities using the SBA's small business size 
standard.
    44. Lower 700 MHz Band Licenses. The lower 700 MHz band encompasses 
spectrum in the 698-746 MHz frequency bands. Permissible operations in 
these bands include flexible fixed, mobile, and broadcast uses, 
including mobile and other digital new broadcast operation; fixed and 
mobile wireless commercial services (including FDD- and TDD-based 
services); as well as fixed and mobile wireless uses for private, 
internal radio needs, two-way interactive, cellular, and mobile 
television broadcasting services. Wireless Telecommunications Carriers 
(except Satellite) is the closest industry with a SBA small business 
size standard applicable to licenses providing services in these bands. 
The SBA small business size standard for this industry classifies a 
business as small if it has 1,500 or fewer employees. U.S. Census 
Bureau data for 2017 show that there were 2,893 firms that operated in 
this industry for the entire year. Of this number, 2,837 firms employed 
fewer than 250 employees. Thus under the SBA size standard, the 
Commission estimates that a majority of licensees in this industry can 
be considered small.
    45. According to Commission data as of December 2021, there were 
approximately 2,824 active Lower 700 MHz Band licenses. The 
Commission's small business size standards with respect to Lower 700 
MHz Band licensees involve eligibility for bidding credits and 
installment payments in the auction of licenses. For auctions of Lower 
700 MHz Band licenses the Commission adopted criteria for three groups 
of small businesses. A very small business was defined as an entity 
that, together with its affiliates and controlling interests, has 
average annual gross revenues not exceeding $15 million for the 
preceding three years, a small business was defined as an entity that, 
together with its affiliates and controlling interests, has average 
gross revenues not exceeding $40 million for the preceding three years, 
and an entrepreneur was defined as an entity that, together with its 
affiliates and controlling interests, has average gross revenues not 
exceeding $3 million for the preceding three years. In auctions for 
Lower 700 MHz Band licenses seventy-two winning bidders claiming a 
small business classification won 329 licenses, twenty-six winning 
bidders claiming a small business classification won 214 licenses, and 
three winning bidders claiming a small business classification won all 
five auctioned licenses.
    46. In frequency bands where licenses were subject to auction, the 
Commission notes that as a general matter, the number of winning 
bidders that qualify as small businesses at the close of an auction 
does not necessarily represent the number of small businesses currently 
in service. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these services, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
    47. Upper 700 MHz Band Licenses. The upper 700 MHz band encompasses 
spectrum in the 746-806 MHz bands. Upper 700 MHz D Block licenses are 
nationwide licenses associated with the 758-763 MHz and 788-793 MHz 
bands. Permissible operations in these bands include flexible fixed, 
mobile, and broadcast uses, including mobile and other digital new 
broadcast operation; fixed and mobile wireless commercial services 
(including FDD- and TDD-based services); as well as fixed and mobile 
wireless uses for private, internal radio needs, two-way interactive, 
cellular, and mobile television broadcasting services. Wireless 
Telecommunications Carriers (except Satellite) is the closest industry 
with a SBA small business size standard applicable to licenses 
providing services in these bands. The SBA small business size standard 
for this industry classifies a business as small if it has 1,500 or 
fewer employees. U.S. Census Bureau data for 2017 show that there were 
2,893 firms that operated in this industry for the entire year. Of that 
number, 2,837 firms employed fewer than 250 employees. Thus, under the 
SBA size standard, the Commission estimates that a majority of 
licensees in this industry can be considered small.
    48. According to Commission data as of December 2021, there were 
approximately 152 active Upper 700 MHz Band licenses. The Commission's 
small business size standards with respect to Upper 700 MHz Band 
licensees involve eligibility for bidding credits and installment 
payments in the auction of licenses. For the auction of these licenses, 
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, and a 
``very small business'' 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. Pursuant to these 
definitions, three winning bidders claiming very small business status 
won five of the twelve available licenses.
    49. 700 MHz Guard Band Licensees. The 700 MHz Guard Band 
encompasses spectrum in 746-747/776-777 MHz and 762-764/792-794 MHz 
frequency bands. Wireless Telecommunications Carriers (except 
Satellite) is the closest industry with a SBA small business size 
standard applicable to licenses providing services in these bands. The 
SBA small business size standard for this industry classifies a 
business as small if it has 1,500 or fewer employees. U.S. Census 
Bureau data for 2017 show that there were 2,893 firms that operated in 
this industry for the entire year. Of this number, 2,837 firms employed 
fewer than 250 employees. Thus under the SBA size standard, the 
Commission estimates that a majority of licensees in this industry can 
be considered small.
    50. According to Commission data as of December 2021, there were 
approximately 224 active 700 MHz Guard Band licenses. The Commission's 
small business size standards with respect to 700 MHz Guard Band 
licensees involve eligibility for bidding credits and installment 
payments in the auction of licenses. For the auction of these licenses, 
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, and a 
``very small business'' 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. Pursuant to these 
definitions, five winning bidders claiming one of the small business 
status classifications won 26 licenses, and one winning bidder claiming 
small business won two licenses. None of the winning bidders claiming a 
small business status classification in these 700 MHz Guard Band 
license auctions had an active license as of December 2021.
    51. In frequency bands where licenses were subject to auction, the 
Commission notes that as a general matter, the number of winning 
bidders that qualify as small businesses at the close of an auction 
does not necessarily represent the number of small businesses

[[Page 76956]]

currently in service. Further, the Commission does not generally track 
subsequent business size unless, in the context of assignments or 
transfers, unjust enrichment issues are implicated. Additionally, since 
the Commission does not collect data on the number of employees for 
licensees providing these services, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
    52. Air-Ground Radiotelephone Service. Air-Ground Radiotelephone 
Service is a wireless service in which licensees are authorized to 
offer and provide radio telecommunications service for hire to 
subscribers in aircraft. A licensee may provide any type of air-ground 
service (i.e., voice telephony, broadband internet, data, etc.) to 
aircraft of any type, and serve any or all aviation markets 
(commercial, government, and general). A licensee must provide service 
to aircraft and may not provide ancillary land mobile or fixed services 
in the 800 MHz air-ground spectrum.
    53. The closest industry with a SBA small business size standard 
applicable to these services is Wireless Telecommunications Carriers 
(except Satellite). The SBA small business size standard for this 
industry classifies a business as small if it has 1,500 or fewer 
employees. U.S. Census Bureau data for 2017 show that there were 2,893 
firms that operated in this industry for the entire year. Of this 
number, 2,837 firms employed fewer than 250 employees. Thus under the 
SBA size standard, the Commission estimates that a majority of 
licensees in this industry can be considered small.
    54. Based on Commission data as of December 2021, there were 
approximately four licensees with 110 active licenses in the Air-Ground 
Radiotelephone Service. The Commission's small business size standards 
with respect to Air-Ground Radiotelephone Service involve eligibility 
for bidding credits and installment payments in the auction of 
licenses. For purposes of auctions, the Commission defined ``small 
business'' as an entity that, together with its affiliates and 
controlling interests, has average gross revenues not exceeding $40 
million for the preceding three years, and a ``very small business'' as 
an entity that, together with its affiliates and controlling interests, 
has had average annual gross revenues not exceeding $15 million for the 
preceding three years. In the auction of Air-Ground Radiotelephone 
Service licenses in the 800 MHz band, neither of the two winning 
bidders claimed small business status.
    55. In frequency bands where licenses were subject to auction, the 
Commission notes that as a general matter, the number of winning 
bidders that qualify as small businesses at the close of an auction 
does not necessarily represent the number of small businesses currently 
in service. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, the Commission 
does not collect data on the number of employees for licensees 
providing these services therefore, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
    56. Advanced Wireless Services (AWS)--(1710-1755 MHz and 2110-2155 
MHz bands (AWS-1); 1915-1920 MHz, 1995-2000 MHz, 2020-2025 MHz and 
2175-2180 MHz bands (AWS-2); 2155-2175 MHz band (AWS-3); 2000-2020 MHz 
and 2180-2200 MHz (AWS-4)). Spectrum is made available and licensed in 
these bands for the provision of various wireless communications 
services. Wireless Telecommunications Carriers (except Satellite) is 
the closest industry with a SBA small business size standard applicable 
to these services. The SBA small business size standard for this 
industry classifies a business as small if it has 1,500 or fewer 
employees. U.S. Census Bureau data for 2017 show that there were 2,893 
firms that operated in this industry for the entire year. Of this 
number, 2,837 firms employed fewer than 250 employees. Thus, under the 
SBA size standard, the Commission estimates that a majority of 
licensees in this industry can be considered small.
    57. According to Commission data as December 2021, there were 
approximately 4,472 active AWS licenses. The Commission's small 
business size standards with respect to AWS involve eligibility for 
bidding credits and installment payments in the auction of licenses for 
these services. For the auction of AWS licenses, the Commission defined 
a ``small business'' as an entity with average annual gross revenues 
for the preceding three years not exceeding $40 million, and a ``very 
small business'' as an entity with average annual gross revenues for 
the preceding three years not exceeding $15 million. Pursuant to these 
definitions, 57 winning bidders claiming status as small or very small 
businesses won 215 of 1,087 licenses. In the most recent auction of AWS 
licenses 15 of 37 bidders qualifying for status as small or very small 
businesses won licenses.
    58. In frequency bands where licenses were subject to auction, the 
Commission notes that as a general matter, the number of winning 
bidders that qualify as small businesses at the close of an auction 
does not necessarily represent the number of small businesses currently 
in service. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these services, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard
    59. 3650-3700 MHz Band. Wireless broadband service licensing in the 
3650-3700 MHz band provides for nationwide, non-exclusive licensing of 
terrestrial operations, utilizing contention-based technologies, in the 
3650 MHz band (i.e., 3650-3700 MHz). Licensees are permitted to provide 
services on a non-common carrier and/or on a common carrier basis. 
Wireless broadband services in the 3650-3700 MHz band fall in the 
Wireless Telecommunications Carriers (except Satellite) industry with a 
SBA small business size standard that classifies a business as small if 
it has 1,500 or fewer employees. U.S. Census Bureau data for 2017 show 
that there were 2,893 firms that operated in this industry for the 
entire year. Of this number, 2,837 firms employed fewer than 250 
employees. Thus under the SBA size standard, the Commission estimates 
that a majority of licensees in this industry can be considered small.
    60. The Commission has not developed a small business size standard 
applicable to 3650-3700 MHz band licensees. Based on the licenses that 
have been granted, however, we estimate that the majority of licensees 
in this service are small internet Access Service Providers (ISPs). As 
of November 2021, Commission data shows that there were 902 active 
licenses in the 3650-3700 MHz band. However, since the Commission does 
not collect data on the number of employees for licensees providing 
these services, at this time we are not able to estimate the number of 
licensees with active licenses that would qualify as small under the 
SBA's small business size standard.
    61. Fixed Microwave Services. Fixed microwave services include 
common carrier, private-operational fixed, and

[[Page 76957]]

broadcast auxiliary radio services. They also include the Upper 
Microwave Flexible Use Service (UMFUS), Millimeter Wave Service (70/80/
90 GHz), Local Multipoint Distribution Service (LMDS), the Digital 
Electronic Message Service (DEMS), 24 GHz Service, Multiple Address 
Systems (MAS), and Multichannel Video Distribution and Data Service 
(MVDDS), where in some bands licensees can choose between common 
carrier and non-common carrier status. Wireless Telecommunications 
Carriers (except Satellite) is the closest industry with a SBA small 
business size standard applicable to these services. The SBA small size 
standard for this industry classifies a business as small if it has 
1,500 or fewer employees. U.S. Census Bureau data for 2017 show that 
there were 2,893 firms that operated in this industry for the entire 
year. Of this number, 2,837 firms employed fewer than 250 employees. 
Thus under the SBA size standard, the Commission estimates that a 
majority of fixed microwave service licensees can be considered small.
    62. The Commission's small business size standards with respect to 
fixed microwave services involve eligibility for bidding credits and 
installment payments in the auction of licenses for the various 
frequency bands included in fixed microwave services. When bidding 
credits are adopted for the auction of licenses in fixed microwave 
services frequency bands, such credits may be available to several 
types of small businesses based average gross revenues (small, very 
small and entrepreneur) pursuant to the competitive bidding rules 
adopted in conjunction with the requirements for the auction and/or as 
identified in Part 101 of the Commission's rules for the specific fixed 
microwave services frequency bands.
    63. In frequency bands where licenses were subject to auction, the 
Commission notes that as a general matter, the number of winning 
bidders that qualify as small businesses at the close of an auction 
does not necessarily represent the number of small businesses currently 
in service. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these services, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
    64. 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)). 
Wireless cable operators that use spectrum in the BRS often 
supplemented with leased channels from the EBS, provide a competitive 
alternative to wired cable and other multichannel video programming 
distributors. Wireless cable programming to subscribers resembles cable 
television, but instead of coaxial cable, wireless cable uses microwave 
channels.
    65. In light of the use of wireless frequencies by BRS and EBS 
services, the closest industry with a SBA small business size standard 
applicable to these services is Wireless Telecommunications Carriers 
(except Satellite). The SBA small business size standard for this 
industry classifies a business as small if it has 1,500 or fewer 
employees. U.S. Census Bureau data for 2017 show that there were 2,893 
firms that operated in this industry for the entire year. Of this 
number, 2,837 firms employed fewer than 250 employees. Thus under the 
SBA size standard, the Commission estimates that a majority of 
licensees in this industry can be considered small.
    66. According to Commission data as December 2021, there were 
approximately 5,869 active BRS and EBS licenses. The Commission's small 
business size standards with respect to BRS involves eligibility for 
bidding credits and installment payments in the auction of licenses for 
these services. For the auction of BRS licenses, the Commission adopted 
criteria for three groups of small businesses. A very small business is 
an entity that, together with its affiliates and controlling interests, 
has average annual gross revenues exceed $3 million and did not exceed 
$15 million for the preceding three years, a small business is an 
entity that, together with its affiliates and controlling interests, 
has average gross revenues exceed $15 million and did not exceed $40 
million for the preceding three years, and an entrepreneur is an entity 
that, together with its affiliates and controlling interests, has 
average gross revenues not exceeding $3 million for the preceding three 
years. Of the ten winning bidders for BRS licenses, two bidders 
claiming the small business status won 4 licenses, one bidder claiming 
the very small business status won three licenses and two bidders 
claiming entrepreneur status won six licenses. One of the winning 
bidders claiming a small business status classification in the BRS 
license auction has an active licenses as of December 2021.
    67. The Commission's small business size standards for EBS define a 
small business as an entity that, together with its affiliates, its 
controlling interests and the affiliates of its controlling interests, 
has average gross revenues that are not more than $55 million for the 
preceding five (5) years, and a very small business is an entity that, 
together with its affiliates, its controlling interests and the 
affiliates of its controlling interests, has average gross revenues 
that are not more than $20 million for the preceding five (5) years. In 
frequency bands where licenses were subject to auction, the Commission 
notes that as a general matter, the number of winning bidders that 
qualify as small businesses at the close of an auction does not 
necessarily represent the number of small businesses currently in 
service. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these services, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
Satellite Service Providers
    68. Satellite Telecommunications. This industry comprises firms 
``primarily engaged in providing telecommunications services to other 
establishments in the telecommunications and broadcasting industries by 
forwarding and receiving communications signals via a system of 
satellites or reselling satellite telecommunications.'' Satellite 
telecommunications service providers include satellite and earth 
station operators. The SBA small business size standard for this 
industry classifies a business with $38.5 million or less in annual 
receipts as small. U.S. Census Bureau data for 2017 show that 275 firms 
in this industry operated for the entire year. Of this number, 242 
firms had revenue of less than $25 million. Additionally, based on 
Commission data in the 2021 Universal Service

[[Page 76958]]

Monitoring Report, as of December 31, 2020, there were 71 providers 
that reported they were engaged in the provision of satellite 
telecommunications services. Of these providers, the Commission 
estimates that approximately 48 providers have 1,500 or fewer 
employees. Consequently using the SBA's small business size standard, a 
little more than of these providers can be considered small entities.
    69. All Other Telecommunications. This industry is comprised of 
establishments primarily engaged in providing specialized 
telecommunications services, such as satellite tracking, communications 
telemetry, and radar station operation. This industry also includes 
establishments primarily engaged in providing satellite terminal 
stations and associated facilities connected with one or more 
terrestrial systems and capable of transmitting telecommunications to, 
and receiving telecommunications from, satellite systems. Providers of 
internet services (e.g. dial-up ISPs) or voice over internet protocol 
(VoIP) services, via client-supplied telecommunications connections are 
also included in this industry. The SBA small business size standard 
for this industry classifies firms with annual receipts of $35 million 
or less as small. U.S. Census Bureau data for 2017 show that there were 
1,079 firms in this industry that operated for the entire year. Of 
those firms, 1,039 had revenue of less than $25 million. Based on this 
data, the Commission estimates that the majority of ``All Other 
Telecommunications'' firms can be considered small.
Cable Service Providers
    70. Because section 706 of the Act requires us to monitor the 
deployment of broadband using any technology, we anticipate that some 
broadband service providers may not provide telephone service. 
Accordingly, we describe below other types of firms that may provide 
broadband services, including cable companies, MDS providers, and 
utilities, among others.
    71. Cable and Other Subscription Programming. The U.S. Census 
Bureau defines this industry as establishments primarily engaged in 
operating studios and facilities for the broadcasting of programs on a 
subscription or fee basis. The broadcast programming is typically 
narrowcast in nature (e.g., limited format, such as news, sports, 
education, or youth-oriented). These establishments produce programming 
in their own facilities or acquire programming from external sources. 
The programming material is usually delivered to a third party, such as 
cable systems or direct-to-home satellite systems, for transmission to 
viewers. The SBA small business size standard for this industry 
classifies firms with annual receipts less than $41.5 million as small. 
Based on U.S. Census Bureau data for 2017, 378 firms operated in this 
industry during that year. Of that number, 149 firms operated with 
revenue of less than $25 million a year and 44 firms operated with 
revenue of $25 million or more. Based on this data, the Commission 
estimates that a majority of firms in this industry are small.
    72. Cable Companies and Systems (Rate Regulation). The Commission 
has developed its own small business size standard 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. Based 
on industry data, there are about 420 cable companies in the U.S. Of 
these, only seven have more than 400,000 subscribers. In addition, 
under the Commission's rules, a ``small system'' is a cable system 
serving 15,000 or fewer subscribers. Based on industry data, there are 
about 4,139 cable systems (headends) in the U.S. Of these, about 639 
have more than 15,000 subscribers. Accordingly, the Commission 
estimates that the majority of cable companies and cable systems are 
small.
    73. Cable System Operators (Telecom Act Standard). The 
Communications Act of 1934, as amended, contains a size standard for a 
``small cable operator,'' which is ``a cable operator that, directly or 
through an affiliate, serves in the aggregate fewer than one 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.'' For purposes of the Telecom Act Standard, the 
Commission determined that a cable system operator that serves fewer 
than 677,000 subscribers, either directly or through affiliates, will 
meet the definition of a small cable operator based on the cable 
subscriber count established in a 2001 Public Notice. Based on industry 
data, only six cable system operators have more than 677,000 
subscribers. Accordingly, the Commission estimates that the majority of 
cable system operators are small under this size standard. We note 
however, that the Commission neither requests nor collects information 
on whether cable system operators are affiliated with entities whose 
gross annual revenues exceed $250 million. Therefore, we are unable at 
this time to estimate with greater precision the number of cable system 
operators that would qualify as small cable operators under the 
definition in the Communications Act.

Description of Projected Reporting, Recordkeeping, and Other Compliance 
Requirements for Small Entities

    74. The document will reduce reporting, recordkeeping, and other 
compliance requirements on small entities. The document sunsets the 
collection of broadband deployment data through Form 477. Fixed and 
mobile broadband service providers who previously filed broadband 
deployment data through Form 477 will no longer be required to do so. 
Instead, providers will file their broadband availability data in the 
BDC system. By sunsetting the collection of broadband deployment data 
through Form 477 the document reduces the reporting requirements for 
small providers and does not require small providers to hire 
professionals to comply or impose any compliance costs. Providers will 
be required to report broadband deployment data only in the BDC filing 
system rather than in both the BDC system and through Form 477.
    75. Although the documentsunsets the collection of broadband 
deployment data, small and other providers are still required to submit 
the subscription data required under Form 477. Additionally, because 
our decision to sunset the collection of broadband deployment data 
through Form 477 may impact other areas where the Commission currently 
uses information from the Form 477 data collection we have directed the 
Wireline Communications Bureau (WCB), the Wireless Telecommunications 
Bureau (WTB), the International Bureau, and the Office of Economic 
Analysis (OEA) to address matters related to the collection and use of 
Form 477 deployment data for other uses and purposes within the 
Commission.
    76. Small and other mobile providers that participate in the Alaska 
Plan will be informed by WTB and OEA how to submit coverage data after 
the sunsetting of the Form 477 broadband deployment data collection, 
including whether to use the BDC filing system for submission of data 
currently submitted using the Form 477 filing system that are specific 
to Alaska. WCB will provide small and other providers that participate 
in either the Bringing Puerto Rico Together Fund or the Connect USVI 
Fund instructions on how to submit coverage data that are specific to 
Puerto Rico and the U.S. Virgin Islands to comply with the requirements 
of those funding mechanisms.

[[Page 76959]]

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

    77. The RFA requires an agency to provide, ``a description of the 
steps the agency has taken to minimize the significant economic impact 
on small entities. . .including a statement of the factual, policy, and 
legal reasons for selecting the alternative adopted in the final rule 
and why each one of the other significant alternatives to the rule 
considered by the agency which affect the impact on small entities was 
rejected.''
    78. The Commission considered the comments in the record regarding 
the sunset of the Form 477 broadband deployment data collection and is 
mindful of the time and resources that small entities incur to file 
broadband data with the Commission. The document concludes that 
sunsetting the Form 477 deployment data collection at this time will 
reduce burdens on small and other providers, by streamlining broadband 
reporting requirements so that providers have to file broadband 
deployment only in the BDC system rather than in both the BDC system 
and through Form 477.
    79. In reaching our decision, we specifically considered sunsetting 
the collection of broadband deployment data through Form 477, (1) once 
a new collection was implemented; (2) after a period of transition 
following a Commission determination that there are sufficient 
resources to implement a new collection and that the new broadband data 
collection produced reliable data; (3) one year after the BDC 
commenced; (4) after one reporting cycle of the BDC; and (5) after the 
BDC requirements were in place. We also considered comments advocating 
maintaining the Form 477 census-block broadband deployment data 
collection going forward. The Commission rejected proposals and 
alternative approaches suggested by commenters that would have required 
a longer transition period during which broadband providers would have 
been subject to the dual collection of deployment data. Limiting the 
duration of the transition period will reduce the burden and economic 
impact on small providers that would have been associated with 
maintaining the dual reporting obligation for a longer period of time.

Report to Congress

    80. The Commission will send a copy of the document, including this 
FRFA, in a report to be sent to Congress pursuant to the Congressional 
Review Act. In addition, the Commission will send a copy of the 
document, including this FRFA, to the Chief Counsel for Advocacy of the 
SBA. A copy of the document and Supplemental FRFA (or summaries 
thereof) will also be published in the Federal Register.

IV. Ordering Clauses

    81. Accordingly, it is ordered that, pursuant to sections 1-4, 201, 
301, 303, 319, 332, 642, and 1702 of the Communications Act of 1934, as 
amended, and section 706 of the Telecommunications Act of 1996, 47 
U.S.C. 151-154, 201, 301, 303, 319, 332, 642, 646, 1302, 1702, this 
Order is adopted.
    82. It is further ordered that the Commission's Consumer & 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of the Order to Congress and the Government Accountability Office 
pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
    83. It is further ordered that the Commission's Consumer & 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Order, including the Final Regulatory Flexibility Analysis 
to the Chief Counsel for Advocacy of the Small Business Administration.
    84. It is further ordered that the Order shall be effective upon 
publication in the Federal Register.

Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. 2022-27373 Filed 12-15-22; 8:45 am]
BILLING CODE 6712-01-P