Incarcerated People's Communication Services; Implementation of the Martha Wright-Reed Act; Rates for Interstate Inmate Calling Services, 77065-77074 [2024-19038]
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Federal Register / Vol. 89, No. 183 / Friday, September 20, 2024 / Proposed Rules
We have developed a comprehensive
Preliminary Economic Analysis of
Impacts that assesses the impacts of the
proposed rule. The full preliminary
analysis of economic impacts is
available in the docket for this proposed
rule (Ref. 1) and at https://www.fda.gov/
about-fda/economics-staff/regulatoryimpact-analyses-ria.
VIII. Analysis of Environmental Impact
We have determined under 21 CFR
25.31(h) that this action is of a type that
does not individually or cumulatively
have a significant effect on the human
environment. Therefore, neither an
environmental assessment nor an
environmental impact statement is
required.
IX. Paperwork Reduction Act of 1995
FDA tentatively concludes that this
proposed rule contains no collection of
information. Therefore, clearance by the
Office of Management and Budget under
the Paperwork Reduction Act of 1995 is
not required.
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X. Federalism
We have analyzed this proposed rule
in accordance with the principles set
forth in Executive Order 13132. We
have determined that this proposed rule
does not contain policies that have
substantial direct effects on the States,
on the relationship between the
National Government and the States, or
on the distribution of power and
responsibilities among the various
levels of government. Accordingly, we
conclude that the rule does not contain
policies that have federalism
implications as defined in the Executive
order and, consequently, a federalism
summary impact statement is not
required.
XI. Consultation and Coordination With
Indian Tribal Governments
We have analyzed this proposed rule
in accordance with the principles set
forth in Executive Order 13175. We
have tentatively determined that the
rule does not contain policies that
would have substantial direct effects on
one or more Indian Tribes, on the
relationship between the Federal
Government and Indian Tribes, or on
the distribution of power and
responsibilities between the Federal
Government and Indian Tribes. The
Agency solicits comments from tribal
officials on any potential impact on
Indian Tribes from this proposed action.
XII. Reference
The following reference is on display
at the Dockets Management Staff (see
ADDRESSES) and is available for viewing
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by interested persons between 9 a.m.
and 4 p.m. Monday through Friday; it is
also available electronically at https://
www.regulations.gov. Although FDA
verified the website addresses in this
document, please note that websites are
subject to change over time.
1. FDA/Economics Staff, ‘‘Revocation of
Regulations Regarding the Mutual
Recognition of Pharmaceutical Good
Manufacturing Practice Reports, Medical
Device Quality System Audit Reports,
and Certain Medical Device Product
Evaluation Reports: United States and
The European Community Preliminary
Regulatory Impact Analysis, Preliminary
Regulatory Flexibility Analysis,
Unfunded Mandates Reform Act
Analysis,’’ 2020. (Available at: https://
www.fda.gov/AboutFDA/
ReportsManualsForms/Reports/
EconomicAnalyses/default.htm.)
77065
FOR FURTHER INFORMATION CONTACT:
Patricia Toppings, 571–372–0485.
SUPPLEMENTARY INFORMATION:
Correction
In proposed rule FR Doc. 2024–19457,
published in the Federal Register on
September 4, 2024 (89 FR 71865) make
the following correction:
On page 71865, in the first column, in
the document heading, the docket
number ‘‘Docket ID: DoD–2021–OS–
0071’’ is corrected to read ‘‘Docket ID:
DoD–2024–OS–0099’’.
Dated: September 17, 2024.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison
Officer, Department of Defense.
[FR Doc. 2024–21551 Filed 9–19–24; 8:45 am]
BILLING CODE 6001–FR–P
List of Subjects in 21 CFR Part 26
Animal, Animal drugs, Biologics,
Drugs, Exports, Imports.
For reasons stated in the preamble,
and under the authority of 21 U.S.C. 393
and delegated to the Commissioner of
Food and Drugs, FDA proposes to
remove 21 CFR part 26.
Dated: September 12, 2024.
Robert M. Califf,
Commissioner of Food and Drugs.
[FR Doc. 2024–21559 Filed 9–19–24; 8:45 am]
BILLING CODE 4164–01–P
DEPARTMENT OF DEFENSE
32 CFR Part 3
[Docket ID: DoD–2024–OS–0099]
RIN 0790–AK98
Transactions Other Than Contracts,
Grants, or Cooperative Agreements for
Prototype Projects; Correction
Office of the Under Secretary of
Defense for Acquisition and
Sustainment (OUSD(A&S)), Department
of Defense (DoD).
ACTION: Proposed rule; correction.
AGENCY:
On September 4, 2024, the
DoD published a proposed rule titled
Transactions Other Than Contracts,
Grants, or Cooperative Agreements for
Prototype Projects. Subsequent to
publication of the proposed rule, DoD
discovered that the docket identifier in
the published proposed rule was
incorrect. All other information in the
September 4, 2024, remains the same.
DATES: This correction is effective on
September 20, 2024.
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47 CFR Part 64
[WC Docket Nos. 12–375, 23–62; FCC 24–
75; FR ID 237560]
Incarcerated People’s Communication
Services; Implementation of the Martha
Wright-Reed Act; Rates for Interstate
Inmate Calling Services
Federal Communications
Commission.
ACTION: Proposed rule.
AGENCY:
The Federal Communications
Commission (Commission) seeks
additional comment on establishing
permanent rate caps for video
incarcerated people’s communications
services (IPCS) that are just and
reasonable, and will fairly compensate
IPCS providers, including comment on
the video IPCS marketplace and the
types of data needed to support its
efforts to adopt permanent video IPCS
rate caps in the future. It also seeks
comment on the possibly of further
disaggregating the very small jail rate
tier and the types of cost or other data
that would identify any additional
distinctions within this rate tier. The
Commission seeks comment on its
authority to address quality of service
issues raised in this proceeding and
whether it should develop minimum
Federal quality of service standards. It
again seeks comment on whether to
expand the definitions of ‘‘Prison’’ and
‘‘Jail’’ to capture the full universe of
confinement facilities and specifically,
the costs providers incur in providing
service to confinement facilities that are
not correctional institutions. It also
seeks comment on whether to
SUMMARY:
Office of the Secretary
SUMMARY:
FEDERAL COMMUNICATIONS
COMMISSION
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incorporate into its inactive account
rules a requirement that providers allow
account holders to designate a third
party to receive refunds from IPCS
accounts. Finally, the Commission seeks
comment on possibly adopting a
uniform additive to the IPCS rate caps
to account for correctional facility costs.
DATES: Comments are due on or before
October 21, 2024; and reply comments
are due on or before November 19, 2024.
ADDRESSES: You may submit comments,
identified by WC Docket Nos. 12–375
and 23–62, by either of the following
methods:
Electronic filers: Comments may be
filed electronically using the internet by
accessing the Commission’s Electronic
Comment Filing System (ECFS): https://
www.fcc.gov/ecfs.
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
courier, or by the U.S. Postal Service.
All filings must be addressed to the
Secretary, Federal Communications
Commission. Hand-delivered or
messenger-delivered paper filings for
the Commission’s Secretary are
accepted between 8 a.m. and 4 p.m. by
the FCC’s mailing contractor at 9050
Junction Drive, Annapolis Junction, MD
20701. 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 courier deliveries (any
deliveries not by the U.S. Postal Service)
must be sent to 9050 Junction Drive,
Annapolis Junction, MD 20701. Filings
sent by U.S. Postal Service First-Class
Mail, Priority Mail, and Priority Mail
Express must be sent to 45 L Street NE,
Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT:
Stephen Meil, Pricing Policy Division of
the Wireline Competition Bureau, at
(202) 418–7233 or via email at
stephen.meil@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Further
Notice of Proposed Rulemaking
(FNPRM), document FCC 24–75,
adopted on July 18, 2024, and released
on July 22, 2024, in WC Docket Nos. 12–
375 and 23–62. This summary is based
on the public redacted version of the
FCC 24–75 document, the full text of
which can be accessed electronically via
the FCC’s Electronic Document
Management System (EDOCS) website
at www.fcc.gov/edocs, or via the FCC’s
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Electronic Comment Filing System
(ECFS) website at www.fcc.gov/ecfs, or
is available at the following internet
address: https://docs.fcc.gov/public/
attachments/FCC-24-75A1.pdf.
Synopsis
I. Further Notice of Proposed
Rulemaking
A. Establishing Permanent Rate Caps for
Video Services
1. In the 2024 IPCS Report and Order,
published elsewhere in this issue of the
Federal Register, we determine that we
do not have a sufficient record or
sufficiently reliable data from the 2023
Mandatory Data Collection to set
permanent rate caps for video IPCS. The
Commission identified anomalies in the
video cost data (both industry-wide and
for Securus in particular) that suggest
that there is significant room for growth
in this nascent market and that these
data were unlikely to be representative
of longer term trends in the video IPCS
market. For these reasons, in the 2024
IPCS Report and Order, we establish
interim rates based on the best data
available and delegate authority to the
Wireline Competition Bureau (WCB)
and the Office of Economics and
Analytics (OEA) to conduct an
additional mandatory data collection to
obtain updated cost and other data and
information from providers concerning
their video IPCS offerings, among other
things. We now seek further comment
on establishing permanent rate caps for
video IPCS that are just and reasonable,
and will fairly compensate IPCS
providers. We emphasize that we will
keep a close eye on developments in the
video IPCS marketplace, including how
changes in it affect people with
disabilities. We anticipate receiving
detailed information on those
developments as part of the IPCS
providers’ annual reports once WCB and
Consumer and Governmental Affairs
Bureau (CGB) revise the requirement for
those reports in response to the 2024
IPCS Report and Order. We also will be
receiving detailed information regarding
video IPCS costs and demand and (to
the extent practicable) how those costs
might change over time, once WCB and
OEA implement the additional data
collection we require today. We ask
interested parties to supplement the
record in this proceeding with any
information they have regarding the
types of video communications services
that providers offer incarcerated people,
the demand for those services, the used
and useful costs providers and facilities
incur in the provision of those services,
and other information that might help
us set just and reasonable, and fairly
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compensatory, permanent rate caps for
video IPCS. While the course of this
proceeding, including the Commission’s
efforts regarding inmate calling services
prior to the enactment of the Martha
Reed-Wright Act, make us acutely aware
of all the steps involved in determining
just and reasonable, and fairly
compensatory, permanent rate caps, we
intend to move quickly to complete that
task with regard to video IPCS once we
have the requisite information.
2. In 2023, the Commission sought
comment on how it could best ensure
that the rates and charges for video IPCS
are just and reasonable (88 FR 27850,
May 3, 2023). We now invite further
comment on the video IPCS
marketplace, including the types of
costs incurred by video IPCS providers
and the pricing and other associated
practices under which such providers
presently offer video services to
incarcerated people. What types of
video communications services are
currently being offered to incarcerated
people and what additional video
services are likely to be offered in the
near future? Is there a difference
between video communications
depending on the technology used? For
example, are kiosks the primary means
of video IPCS or are tablets more
prevalent? What role does applicationbased video IPCS play in the IPCS
market and how is that role likely to
change in the future with increased
deployment of tablets? Do providers use
third-party applications, or develop
applications internally? Do providers
that develop such applications
internally offset their development costs
by selling them to other providers? Are
there trends favoring the use of one
technology over the other, for example,
in costs, deployment, or usage? Is there
a cost difference between different types
of technologies, whether hardwarebased or software-based, or among
different versions of the same types of
technologies? Are these technologies
used in different ways? For example, are
kiosks used more commonly for on-site
video visitation? Do different hardware
or software platforms entail differences
in the manner in which video IPCS is
offered, for example, as to quality of
service or the variety of features offered
with the service? Within the categories
of safety and security services that we
identify as used and useful in the 2024
IPCS Report and Order, are any such
services or functions particular to video
IPCS that—given the developing nature
of the market—are still in the process of
deployment or development?
3. We also seek comment on trends
that may characterize the video IPCS
market. What trends are there, if any, in
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the costs of providing video IPCS? Are
the substantial investments providers
reported making in video equipment in
the 2023 Mandatory Data Collection
continuing or is investment in them
trending to more stable, sustainable
levels? Under what circumstances
would it be appropriate to determine
that the market has reached a more
mature stage, potentially warranting the
adoption of permanent, rather than
interim, rates? What trends are there, if
any, in demand for video IPCS? To what
extent are providers’ investments in and
deployment of video equipment and
network architecture stimulating
demand for video IPCS? Are there
trends in the costs of deploying these
technologies as they become more
widely available? Are there trends in the
relative usage of these technologies to
access video IPCS, including video
visitation, versus other services
provided via the same technologies or
platforms, such as educational or
entertainment services? How should we
measure the relative use of these
technologies among different services?
What proportion of equipment and
platform costs are devoted to providing
video IPCS as compared to providing
other services? Given the common usage
of these equipment and platforms, what
are appropriate methods for allocating
costs among video IPCS, audio IPCS,
and other non-IPCS that use the same
equipment and platforms? What trends
are there, if any, in providers’
investment in the platforms necessary to
support the provision of video IPCS?
4. Additional Mandatory Data
Collection. In the 2024 IPCS Report and
Order, we direct staff to conduct an
additional mandatory data collection to
obtain updated data on video IPCS and
the IPCS industry in general. We seek
comment on the types of data that
would be most helpful for the
Commission to collect to support its
efforts to adopt permanent video IPCS
rate caps in the future. We invite
comment on any changes the
Commission should consider making to
the 2023 Mandatory Data Collection as
it considers developing the additional
data collection. Are there any types of
data that the Commission should
consider adding to that collection to
ensure it meets the Commission’s
needs? We also seek comment on the
relative benefits and burdens that
collecting additional data would entail.
Finally, we seek comment on the
appropriate timeframe in which to
conduct this data collection to ensure
that the data we receive reflect a
sufficiently mature video IPCS market to
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be suitable as the basis for setting
permanent video IPCS rate caps.
B. Further Disaggregating the Very
Small Jail Tier
5. In the 2024 IPCS Report and Order,
we establish five rate cap tiers based on
facility type and size, based on the best
evidence available, in both the record
and the data provided in the 2023
Mandatory Data Collection, reflecting
the factors driving providers’ costs. Of
the four size tiers for jails, the smallest
size tier (i.e., for those jails with an
average daily population of less than
100) makes up approximately half of all
jails for which we had available data.
Given the relative share of jail facilities
comprising this tier, we recognize that
there may be additional distinctions
within this tier that are not effectively
captured by the available data and that
the number of facilities in this tier, of
necessity, limits the granularity of the
analysis for this smallest jail tier. For
example, certain small providers that
serve very small jails failed to submit
data in response to the 2023 Mandatory
Data Collection that we found to be
reliable and therefore excluded from our
analysis. Although we find that the
available data are sufficiently robust for
setting permanent audio rate caps at the
tiers we adopt in the 2024 IPCS Report
and Order, obtaining more reliable data
from these providers may establish a
better more comprehensive
understanding of the costs of serving
this smallest tier of jails. Commenters
suggest that the smallest facilities are
subject to particularly high costs, due to,
for example, more frequently being
located in rural areas. Accordingly, we
seek comment on the types of cost or
other data that would be most helpful
for the Commission to collect from
providers serving this tier of facilities to
ascertain whether, and if so how, to
further disaggregate this tier to capture
any variability that may exist within
segments of this tier. Are there any
particular types of data that the
Commission should consider adding to
our subsequent data collection to ensure
that it meets the Commission’s needs in
this regard? We also seek comment on,
if the data suggests that this tier should
be further disaggregated, how to do so
in a manner that accurately reflects
providers’ costs, but also minimizes the
burden on providers to administer or on
consumers to understand.
C. Quality of Service
6. Many commenters raise concerns in
the record regarding the quality of IPCS.
Dropped calls, lack of enough
communications devices at facilities,
frozen video screens, and other
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technological shortcomings are ongoing
challenges for incarcerated people and
their loved ones. As an initial matter,
we seek comment on scope of the
Commission’s authority to address
quality of service issues related to these
communications services, including to
establish and enforce service quality
rules or standards for the provision of
IPCS. The Commission long has relied
on its section 201(b) authority to
address traffic delivery and call
completion concerns. In addition, the
Commission has recognized that ‘‘[a]n
inherent part of any rate setting process
is not only the establishment of the rate
level and rate structure, but the
definition of the service or functionality
to which the rate will apply.’’ We thus
believe that quality of service
considerations are within the purview
of our establishment of a compensation
plan to ensure just and reasonable rates
for IPCS under section 276(b)(1)(A). Do
commenters agree that our traditional
sources of statutory authority over these
communications and providers—
sections 276 and 201—convey
jurisdiction for the regulation of service
quality? Are there alternative statutory
provisions on which we could rely to
regulate the service quality of IPCS?
Does the source of our authority differ
depending on the type of
communication, i.e., audio or video
IPCS?
7. Assuming the Commission has
statutory bases to address service
quality issues, we seek comment on
whether the Commission should
develop minimum Federal quality of
service standards. If Federal standards
are warranted, how should such
standards or rules be developed? Should
there be different standards or rules for
different types of facilities or providers?
Should the Commission establish the
same or different standards for audio
and video IPCS? Are there technical
considerations that may warrant
different standards for video services, or
for different types of video services?
How would the Commission monitor
and enforce such standards? Similarly,
are there service quality issues caused
by factors beyond the control of the
IPCS provider, such as broadband
congestion or network failures? If so,
how would Federal standards account
for these factors?
8. We also seek comment on the types
of service quality issues that should be
addressed by any Federal standards.
Should the standards simply address
the most common issues reported in the
record or attempt to cover any issue that
materially impacts the communication
service? If the Commission adopted
service quality standards, how would
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such standards be monitored and
enforced and through what procedures?
Under what circumstances, if any,
should the standards require refunds to
IPCS consumers?
9. Finally, are there any existing
service quality standards or regulations
in the IPCS marketplace today? To the
extent that parties support adoption of
Federal service quality standards, we
anticipate that existing standards or
regulations might provide a model for
Federal efforts. Do prison and jail
facilities currently have rules or
regulations in place to address the
service quality of IPCS? Do contracts
between correctional institutions and
providers include service quality
standards, and, if so, what kinds of
standards and what type of metrics for
monitoring such standards are
included? Have states adopted any
regulations designed to address service
quality of communications in
correctional facilities? Parties should
address these and any additional issues
related to the service quality of IPCS.
D. Expanding the Definitions of Prisons
and Jails
10. In the 2024 IPCS Report and
Order, we modify the definition of
‘‘Jail’’ to encompass all immigration
detention facilities, but we decline, at
this time, to further expand the
definitions of ‘‘Prison’’ and ‘‘Jail’’ in our
rules, as requested by some parties, to
capture the full universe of confinement
facilities such as civil commitment,
residential, group and nursing facilities.
Several commenters support expanding
the definition of ‘‘Jail’’ to cover civil
commitment facilities, residential
facilities, group facilities, and nursing
facilities in which people with
disabilities, substance abuse problems,
or other conditions are routinely
detained. In both 2022 and 2023, the
Commission sought comment on
modifying the definitions of ‘‘Jail’’ and
‘‘Prison’’ in its rules ‘‘to ensure that they
capture the full universe of confinement
facilities.’’ In addition, the Commission
sought comment in 2022 on its authority
to apply the inmate calling services
rules, ‘‘including those addressing
communication disabilities, to these
facilities.’’ Although we agree that
individuals in these facilities should
benefit from the protections of just and
reasonable rate caps and other consumer
protection rules that we adopt here, we
conclude that the Commission lacks
sufficient information and data to
address the requests. For this reason, we
seek further comment on the costs
providers incur in providing service to
confinement facilities that are not
correctional institutions.
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11. Some parties contend that the
definition of payphone service in
section 276 of the Communications Act
is, in pertinent part, limited to
payphone service provided ‘‘in
correctional institutions’’ and does not
extend to confinement facilities that
allegedly are not ‘‘correctional’’ in
nature. Others assert that the protections
of our rules should be extended to
benefit individuals in confinement
facilities generally. We seek comment
on whether our statutory authority
under section 276 can be interpreted to
extend to confinement facilities. Are
there other sources of statutory
authority that would allow us to extend
our regulations to cover these facilities?
12. Some parties contend that IPCS
regulations should only apply to
‘‘corrections-type communications
systems’’ because the various types of
confinement facilities may not have the
same cost characteristics as correctional
facilities. We seek comment on whether
confinement facilities outside the scope
of facilities historically encompassed by
our rules have cost characteristics that
are substantially similar to the facilities
our rules traditionally have addressed.
Do confinement facilities make available
communications services and impose
similar types of usage restrictions as
correctional facilities? Parties
addressing these issues should detail
any cost and service differences, and
how such differences might result in
different rate caps for non-correctional
confinement facilities.
E. Treatment of Unused Balances In
IPCS Accounts
13. In the 2024 IPCS Report and
Order, we adopt permanent rules
designed to ensure that IPCS account
holders receive refunds of any unused
funds in their accounts once the
accounts are deemed inactive. We invite
comment on whether to incorporate into
those rules a requirement that providers
allow account holders to designate a
family member or other individual as an
additional person eligible to receive
refunds. We ask that commenters
address the relative benefits and
burdens of such a measure. We also ask
how we might tailor such a measure to
facilitate timely refunds without unduly
burdening providers. Should we, for
example, require providers to give
account holders the opportunity to
provide their designees’ contact
information, including residential
addresses, phone numbers, and email
addresses? Should we specify, in
addition, that a designee receive any
inactivity and refund notices that would
be provided to the account holder and
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be allowed to request refunds on the
account holder’s behalf?
F. Uniform Additive To Account for
Correctional Facility Costs
14. We seek comment on whether we
should adopt a uniform additive to our
IPCS rate caps to account for
correctional facility costs. In the 2024
IPCS Report and Order, we permit IPCS
providers to reimburse correctional
facilities for the used and useful costs
they may incur in allowing access to
IPCS. Some commenters express
concern that the reimbursement we
permit may be difficult for IPCS
providers to implement, particularly in
determining which costs are used and
useful for purposes of reimbursement.
As an alternative, some commenters
propose the use of an ‘‘explicit additive
to the rate caps for audio and video
IPCS.’’ Under this proposal, rather than
permit IPCS providers and correctional
facilities to negotiate for reimbursement
under our current audio and video IPCS
rates caps, the Commission would adopt
a uniform facility cost additive. One
commenter suggests that this approach
‘‘would properly account for the
security needs of facilities (and
corresponding costs caused by making
IPCS available)’’ and would ‘‘help to
ensure the continued widespread
availability of IPCS.’’ We seek comment
on this proposal, including the extent to
which an additive would be a
reasonable method to ensure that
correctional facilities are able to recover
the used and useful costs they incur in
making IPCS available. Is such an
additive preferable to the freelynegotiated reimbursement we allow in
the 2024 IPCS Report and Order? Why
or why not? Would a uniform additive
allow correctional facilities to better
adapt to the IPCS rate structure the
Commission adopts in the 2024 IPCS
Report and Order? Why or why not?
15. We seek broad comment on the
contours of any possible rate additive.
In particular, we seek comment on the
appropriate amount of a rate additive for
used and useful correctional facility
costs. One commenter suggests that
$0.02 could be established as a
maximum cost recovery amount. This
would be consistent with the approach
the Commission took for prisons and
jails with average daily populations of
1,000 or more in the 2021 ICS Order (86
FR 40682, July 28, 2021). Pay Tel’s
outside consultant, estimates, on the
basis of an informal survey of 30
correctional facilities with average daily
populations below 1,000 that the
average used and useful costs may be
$0.08 per minute. Which data should
the Commission rely on in determining
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the appropriate additive and why? To
the extent commenters believe more
data are needed, should the Commission
seek those data through an additional
data collection? How can we ensure that
we receive reliable data on correctional
facilities’ used and useful costs for
purposes of establishing a rate additive?
Obtaining reliable correctional facility
cost data has been a perennial problem
in these proceedings. In 2021, the
Commission sought comment on how to
obtain reliable correctional facility data
(86 FR 40416, July 28, 2021). The
Commission also sought facility cost
data in the 2023 Mandatory Data
Collection. As we explain above,
however, commenters have not
provided updated facility cost data.
Finally, we invite comment on how the
Commission should implement a rate
additive within the zones of
reasonableness determined in the 2024
IPCS Report and Order.
race, color, religion, national origin, or
sex.’’ Specifically, we seek comment on
how our proposals may promote or
inhibit advances in diversity, equity,
inclusion, and accessibility, as well as
the scope of the Commission’s relevant
legal authority. The term ‘‘equity’’ is
used here consistent with Executive
Order 13985 as the consistent and
systematic fair, just, and impartial
treatment of all individuals, including
individuals who belong to underserved
communities that have been denied
such treatment, such as Black, Latino,
and Indigenous and Native American
persons, Asian Americans and Pacific
Islanders and other persons of color;
members of religious minorities;
lesbian, gay, bisexual, transgender, and
queer (LGBTQ+) persons; persons with
disabilities; persons who live in rural
areas; and persons otherwise adversely
affected by persistent poverty or
inequality.
G. Effect on Small Entities
16. We seek comment on the effect
that our proposals to adopt permanent
video IPCS rate caps, quality of service
rules, and expanded definitions of
‘‘Prison’’ and ‘‘Jail’’ in our rules would
have on small entities, and whether any
rules that we adopt should apply
differently to small entities. We seek
input on the effect, if any, on small
entities of any other issues upon which
we inquire in this document. We also
seek comment on how we should take
into account the impact on small
businesses and, in particular, any
disproportionate impact or unique
burdens that small businesses may face,
in effectuating the questions and
proposals in this document. Parties
should also address any alternative
proposals that would minimize the
burdens on small businesses.
I. OPEN Government Data Act
18. We also seek comment on whether
any of the information proposed to be
collected in this would constitute ‘‘data
assets’’ for purposes of the OPEN
Government Data Act and, if so,
whether such information should be
published as ‘‘open Government data
assets’’?
H. Digital Equity and Inclusion
17. The Commission, as part of its
continuing effort to advance digital
equity for all, including people of color,
persons with disabilities, persons who
live in rural or Tribal areas, and others
who are or have been historically
underserved, marginalized, or adversely
affected by persistent poverty or
inequality, invites comment on any
equity-related considerations and
benefits (if any) that may be associated
with the proposals and issues discussed
herein. Section 1 of the
Communications Act provides that the
Commission ‘‘regulat[es] interstate and
foreign commerce in communication by
wire and radio so as to make [such
service] available, so far as possible, to
all the people of the United States,
without discrimination on the basis of
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II. Procedural Matters
19. Initial Regulatory Flexibility
Analysis. As required by the Regulatory
Flexibility Act (RFA), the Commission
has prepared an Initial Regulatory
Flexibility Analysis (IRFA) of the
possible significant economic impact on
small entities by the policies and rules
proposed in this document. The
Commission requests written public
comments on the IRFA. Comments must
be identified as responses to the IRFA
and must be filed by the deadlines for
comments provided in this document.
The Commission will send a copy of the
FNPRM, including the IRFA, to the
Chief Counsel for Advocacy of the Small
Business Administration (SBA). In
addition, the FNPRM and the IRFA (or
summaries thereof) will be published in
the Federal Register.
20. Initial Paperwork Reduction Act
(PRA) Analysis. This document may
contain new or modified information
collection(s) subject to the PRA. If the
Commission adopts any new or
modified information collection
requirements, they will be submitted to
the Office of Management and Budget
(OMB) for review under section 3507(d)
of the PRA. OMB, the general public,
and other Federal agencies are invited to
comment on the new or modified
information collection requirements
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contained in this proceeding. In
addition, pursuant to the Small
Business Paperwork Relief Act of 2002,
we seek specific comment on how we
might ‘‘further reduce the information
collection burden for small business
concerns with fewer than 25
employees.’’
21. Providing Accountability Through
Transparency Act. Consistent with the
Providing Accountability Through
Transparency Act, Public Law 118–9, a
summary of the FNPRM will be
available on https://www.fcc.gov/
proposed-rulemakings.
22. OPEN Government Data Act. The
OPEN Government Data Act, requires
agencies to make ‘‘public data assets’’
available under an open license and as
‘‘open Government data assets,’’ i.e., in
machine-readable, open format,
unencumbered by use restrictions other
than intellectual property rights, and
based on an open standard that is
maintained by a standards organization.
This requirement is to be implemented
‘‘in accordance with guidance by the
Director’’ of the OMB. The term ‘‘public
data asset’’ means ‘‘a data asset, or part
thereof, maintained by the Federal
Government that has been, or may be,
released to the public, including any
data asset, or part thereof, subject to
disclosure under [the Freedom of
Information Act (FOIA)].’’ A ‘‘data
asset’’ is ‘‘a collection of data elements
or data sets that may be grouped
together,’’ and ‘‘data’’ is ‘‘recorded
information, regardless of form or the
media on which the data is recorded.’’
We seek comment in the FNPRM on
whether any of the information
proposed to be collected would
constitute ‘‘data assets’’ for purposes of
the OPEN Government Data Act and, if
so, whether such information should be
published as ‘‘open Government data
assets.’’
23. Comment Period and Filing
Procedures. Pursuant to sections 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 in the
DATES section of this document. All
filings must refer to WC Docket Nos. 23–
62 and 12–375. The Protective Order
issued in this proceeding permits
parties to designate certain material as
confidential. Filings which contain
confidential information should be
appropriately redacted, and filed
pursuant to the procedure described
therein.
24. Electronic Filers: Comments may
be filed electronically using the internet
by accessing the Commission’s
Electronic Comment Filing System
(ECFS): https://www.fcc.gov/ecfs. See
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Electronic Filing of Documents in
Rulemaking Proceedings, 63 FR 24121
(1998).
25. 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.
26. Filings can be sent by hand or
messenger delivery, by commercial
courier, or by the U.S. Postal Service.
All filings must be addressed to the
Secretary, Federal Communications
Commission.
27. Hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary are accepted
between 8 a.m. and 4 p.m. by the FCC’s
mailing contractor at 9050 Junction
Drive, Annapolis Junction, MD 20701.
All hand deliveries must be held
together with rubber bands or fasteners.
Any envelopes and boxes must be
disposed of before entering the building.
28. Commercial courier deliveries
(any deliveries not by the U.S. Postal
Service) must be sent to 9050 Junction
Drive, Annapolis Junction, MD 20701.
29. Filings sent by U.S. Postal Service
First-Class Mail, Priority Mail, and
Priority Mail Express must be sent to 45
L Street NE, Washington, DC 20554.
30. Comments and reply comments
must include a short and concise
summary of the substantive arguments
raised in the pleading. Comments and
reply comments must also comply with
§ 1.49 and all other applicable sections
of the Commission’s rules. We direct all
interested parties to include the name of
the filing party and the date of the filing
on each page of their comments and
reply comments. All parties are
encouraged to use a table of contents,
regardless of the length of their
submission. We also strongly encourage
parties to track the organization set forth
in the FNPRM in order to facilitate our
internal review process.
31. Ex Parte Rules. This proceeding
shall be treated as a ‘‘permit-butdisclose’’ proceeding in accordance
with the Commission’s ex parte rules.
47 CFR 1.1200 through 1.1216. Persons
making ex parte presentations must file
a copy of any written presentation or a
memorandum summarizing any oral
presentation within two business days
after the presentation (unless a different
deadline applicable to the Sunshine
period applies).
32. Persons making oral ex parte
presentations are reminded that
memoranda summarizing the
presentation must (1) list all persons
attending or otherwise participating in
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the meeting at which the ex parte
presentation was made, and (2)
summarize all data presented and
arguments made during the
presentation. If the presentation
consisted in whole or in part of the
presentation of data or arguments
already reflected in the presenter’s
written comments, memoranda or other
filings in the proceeding, the presenter
may provide citations to such data or
arguments in his or her prior comments,
memoranda, or other filings (specifying
the relevant page and/or paragraph
numbers where such data or arguments
can be found) in lieu of summarizing
them in the memorandum. Documents
shown or given to Commission staff
during ex parte meetings are deemed to
be written ex parte presentations and
must be filed consistent with
§ 1.1206(b). In proceedings governed by
§ 1.49(f) or for which the Commission
has made available a method of
electronic filing, written ex parte
presentations and memoranda
summarizing oral ex parte
presentations, and all attachments
thereto, must be filed through the
electronic comment filing system
available for that proceeding, and must
be filed in their native format (e.g., .doc,
.xml, .ppt, searchable .pdf). Participants
in this proceeding should familiarize
themselves with the Commission’s ex
parte rules.
33. 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 and Governmental
Affairs Bureau at 202–418–0530.
34. Availability of Documents.
Comments, reply comments, and ex
parte submissions will be publicly
available online via ECFS.
III. Initial Regulatory Flexibility
Analysis
35. As required by the RFA, the
Commission has prepared this IRFA of
the possible significant economic
impact on small entities by the policies
and rules proposed in this document.
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. The Commission will send a
copy of the FNPRM, including the IRFA,
to the Chief Counsel for Advocacy of the
Small Business Administration (SBA).
In addition, the FNPRM and the IRFA
(or summaries thereof) will be
published in the Federal Register.
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A. Need for, and Objectives of, the
Proposed Rules
36. The Commission seeks additional
comment on establishing permanent
rate caps for video incarcerated people’s
communications services (IPCS) that are
just and reasonable, and will fairly
compensate IPCS providers.
Specifically, the Commission requests
that parties supplement the record with
additional information on the video
IPCS marketplace, including the types
of video communications services that
providers offer incarcerated people, the
demand for those services, the used and
useful costs providers and facilities
incur in the provision of those services,
and other information that might help
us set just and reasonable, and fairly
compensatory, permanent rate caps for
video IPCS. It also requests comment on
the types of data that would be most
helpful for the Commission to collect to
support its efforts to adopt permanent
video IPCS rate caps.
37. The Commission also seeks
comment on quality of service issues
that have been raised in this proceeding.
This includes comment on the
Commission’s legal authority to address
quality of service issues and whether it
should develop minimal quality of
service standards. It seeks comment on
the types of service quality issues that
should be addressed and whether there
should be different standards or rules
for different types of facilities or
providers.
38. The Commission again seeks
comment on revisions to its definitions
of ‘‘Prison’’ and ‘‘Jail,’’ and specifically,
the costs providers incur in providing
service to confinement facilities that are
not correctional institutions. The
Commission also seeks comment on
whether its statutory authority under
section 276 can be interpreted to extend
to confinement facilities. Finally, the
Commission seeks comment on possibly
obtaining additional data about serving
very small jails, the possible designation
of a third party to receive refunds from
IPCS accounts and possibly adopting a
uniform additive to the IPCS rate caps
to account for correctional facility costs.
B. Legal Basis
39. The proposed action is authorized
pursuant to sections 1, 2, 4(i)–(j), 201(b),
218, 220, 225, 255, 276, and 403 of the
Communications Act of 1934, as
amended, 47 U.S.C. 151, 152, 154(i)–(j),
201(b), 218, 220, 225, 255, 276, 403, and
617 and the Martha Wright-Reed Just
and Reasonable Communications Act of
2022, Public Law 117–338, 136 Stat
6156 (2022).
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C. Description and Estimate of the
Number of Small Entities to Which the
Proposed Rules Will Apply
40. 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 proposed rule revisions, if adopted.
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.
41. 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
SBA’s 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 33.2 million businesses.
42. 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 2022, there were approximately
530,109 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.
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 2022 Census of
Governments indicate there were 90,837
local governmental jurisdictions
consisting of general purpose
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governments and special purpose
governments in the United States. Of
this number, there were 36,845 general
purpose governments (county,
municipal, and town or township) with
populations of less than 50,000 and
11,879 special purpose governments
(independent school districts) with
enrollment populations of less than
50,000. Accordingly, based on the 2022
U.S. Census of Governments data, we
estimate that at least 48,724 entities fall
into the category of ‘‘small
governmental jurisdictions.’’
43. 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 Voice over internet
Protocol (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.
44. 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 2022 Universal Service
Monitoring Report, as of December 31,
2021, there were 4,590 providers that
reported they were engaged in the
provision of fixed local services. Of
these providers, the Commission
estimates that 4,146 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.
45. 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
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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 2022 Universal Service
Monitoring Report, as of December 31,
2021, there were 4,590 providers that
reported they were engaged in the
provision of fixed local services. Of
these providers, the Commission
estimates that 4,146 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.
46. 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 an
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 2022 Universal
Service Monitoring Report, as of
December 31, 2021, there were 4,590
providers that reported they were fixed
local exchange service providers. Of
these providers, the Commission
estimates that 4,146 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.
47. 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 an 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
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Commission data in the 2022 Universal
Service Monitoring Report, as of
December 31, 2021, there were 1,212
providers that reported they were
incumbent local exchange service
providers. Of these providers, the
Commission estimates that 916
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.
48. Competitive Local Exchange
Carriers (CLECs). 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 2022 Universal
Service Monitoring Report, as of
December 31, 2021, there were 3,378
providers that reported they were
competitive local service providers. Of
these providers, the Commission
estimates that 3,230 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.
49. 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 an
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 2022 Universal
Service Monitoring Report, as of
December 31, 2021, there were 127
providers that reported they were
engaged in the provision of
interexchange services. Of these
providers, the Commission estimates
that 109 providers have 1,500 or fewer
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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.
50. Local Resellers. Neither the
Commission nor the SBA have
developed a small business size
standard specifically for Local Resellers.
Telecommunications Resellers is the
closest industry with an SBA small
business size standard. The
Telecommunications Resellers industry
comprises establishments engaged in
purchasing access and network capacity
from owners and operators of
telecommunications networks and
reselling wired and wireless
telecommunications services (except
satellite) to businesses and households.
Establishments in this industry resell
telecommunications; they do not
operate transmission facilities and
infrastructure. Mobile virtual network
operators (MVNOs) are included in this
industry. The SBA small business size
standard for Telecommunications
Resellers classifies a business as small if
it has 1,500 or fewer employees. U.S.
Census Bureau data for 2017 show that
1,386 firms in this industry provided
resale services for the entire year. Of
that number, 1,375 firms operated with
fewer than 250 employees.
Additionally, based on Commission
data in the 2022 Universal Service
Monitoring Report, as of December 31,
2021, there were 207 providers that
reported they were engaged in the
provision of local resale services. Of
these providers, the Commission
estimates that 202 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.
51. Toll Resellers. Neither the
Commission nor the SBA have
developed a small business size
standard specifically for Toll Resellers.
Telecommunications Resellers is the
closest industry with an SBA small
business size standard. The
Telecommunications Resellers industry
comprises establishments engaged in
purchasing access and network capacity
from owners and operators of
telecommunications networks and
reselling wired and wireless
telecommunications services (except
satellite) to businesses and households.
Establishments in this industry resell
telecommunications; they do not
operate transmission facilities and
infrastructure. MVNOs are included in
this industry. The SBA small business
size standard for Telecommunications
Resellers classifies a business as small if
it has 1,500 or fewer employees. U.S.
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Census Bureau data for 2017 show that
1,386 firms in this industry provided
resale services for the entire year. Of
that number, 1,375 firms operated with
fewer than 250 employees.
Additionally, based on Commission
data in the 2022 Universal Service
Monitoring Report, as of December 31,
2021, there were 457 providers that
reported they were engaged in the
provision of toll services. Of these
providers, the Commission estimates
that 438 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.
52. 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 2022 Universal
Service Monitoring Report, as of
December 31, 2021, there were 90
providers that reported they were
engaged in the provision of other toll
services. Of these providers, the
Commission estimates that 87 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.
53. Payphone Service Providers
(PSPs). Neither the Commission nor the
SBA have developed a small business
size standard specifically for payphone
service providers. Telecommunications
Resellers is the closest industry with an
SBA small business size standard. The
Telecommunications Resellers industry
comprises establishments engaged in
purchasing access and network capacity
from owners and operators of
telecommunications networks and
reselling wired and wireless
telecommunications services (except
satellite) to businesses and households.
Establishments in this industry resell
telecommunications; they do not
operate transmission facilities and
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infrastructure. MVNOs are included in
this industry. The SBA small business
size standard for Telecommunications
Resellers classifies a business as small if
it has 1,500 or fewer employees. U.S.
Census Bureau data for 2017 show that
1,386 firms in this industry provided
resale services for the entire year. Of
that number, 1,375 firms operated with
fewer than 250 employees.
Additionally, based on Commission
data in the 2022 Universal Service
Monitoring Report, as of December 31,
2021, there were 36 providers that
reported they were engaged in the
provision of payphone services. Of these
providers, the Commission estimates
that 32 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.
54. Telecommunications Relay
Service (TRS) Providers.
Telecommunications relay services
enable individuals who are deaf, hard of
hearing, deafblind, or who have a
speech disability to communicate by
telephone in a manner that is
functionally equivalent to using voice
communication services. Internet-based
TRS connects an individual with a
hearing or a speech disability to a TRS
communications assistant using an
internet Protocol-enabled device via the
internet, rather than the public switched
telephone network. Video Relay Service
(VRS), one form of internet-based TRS,
enables people with hearing or speech
disabilities who use sign language to
communicate with voice telephone
users over a broadband connection
using a video communication device.
Internet Protocol Captioned Telephone
Service (IP CTS) another form of
internet-based TRS, permits a person
with hearing loss to have a telephone
conversation while reading captions of
what the other party is saying on an
internet-connected device. A third form
of internet-based TRS, internet Protocol
Relay Service (IP Relay), permits an
individual with a hearing or a speech
disability to communicate in text using
an internet Protocol-enabled device via
the internet, rather than using a text
telephone (TTY) and the public
switched telephone network. Providers
must be certified by the Commission to
provide VRS and IP CTS and to receive
compensation from the TRS Fund for
TRS provided in accordance with
applicable rules. Analog forms of TRS,
text telephone (TTY), Speech-to-Speech
Relay Service, and Captioned Telephone
Service, are provided through state TRS
programs, which also must be certified
by the Commission.
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55. Neither the Commission nor the
SBA have developed a small business
size standard specifically for TRS
Providers. All Other
Telecommunications is the closest
industry with an SBA small business
size standard. Internet Service Providers
(ISPs) and VoIP services, via clientsupplied telecommunications
connections are 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 Commission data
there are 14 certified internet-based TRS
providers and two analog forms of TRS
providers. The Commission however
does not compile financial information
for these providers. Nevertheless, based
on available information, the
Commission estimates that most
providers in this industry are small
entities.
56. 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 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 $40 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.
D. Description of Projected Reporting,
Recordkeeping, and Other Compliance
Requirements for Small Entities
57. Establishing Permanent Rate Caps
for Video IPCS. The Commission seeks
comments on establishing permanent
video IPCS rates, including updated
marketplace and cost data. To the extent
that permanent video IPCS rate caps are
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Fmt 4702
Sfmt 4702
77073
lower than the interim rate caps and
apply to all types of facilities (including
jails with average daily populations
below 1,000) as detailed in the 2024
IPCS Report and Order, IPCS video
providers (including any smaller
entities) must comply with the new rate
caps.
58. Compliance with Quality of
Service Rules. The Commission seeks
comment on adopting quality of service
rules for IPCS. It also seeks comment on
whether there should be different
standards or rules for different types of
facilities or providers. Thus, IPCS
providers that are small entities may be
subject to any quality of service rules
ultimately adopted by the Commission.
59. Recordkeeping, Reporting, and
Certification. The 2024 IPCS Report and
Order directs staff to conduct an
additional mandatory data collection to
obtain updated data on video IPCS and
the IPCS industry in general. The
Commission seeks comment on the
types of data that would be most helpful
for it to collect to support its efforts to
adopt permanent video IPCS rate caps
that are just and reasonable to
consumers, as well as ensuring fair
compensation to providers. To the
extent the Commission imposes a new
mandatory data collection, providers of
all sizes must maintain and report their
cost data in accordance with the
Commission’s rules. The Commission
also seeks comments on revising its
definitions of ‘‘Prison’’ and ‘‘Jail’’ to
capture the full universe of confinement
facilities. To the extent the Commission
expands these definitions as proposed,
providers of communication services to
these facilities may be subject to the
Commission’s regulations. We
anticipate the information we receive in
comments including where requested,
cost and benefit analyses, will help the
Commission identify and evaluate
relevant compliance matters for small
entities, including compliance costs and
other burdens that may result from the
proposals and inquiries we make herein.
E. Steps Taken To Minimize the
Significant Economic Impact on Small
Entities and Significant Alternatives
Considered
60. The RFA requires an agency to
describe any significant, alternatives
that could minimize impacts to small
entities 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
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ddrumheller on DSK120RN23PROD with PROPOSALS1
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.
61. The Commission seeks comments
on establishing permanent rate caps for
video IPCS. Data are sought from
providers servicing different facility
types and sizes, and information on how
small providers serving jails, which may
be smaller, higher-cost facilities, and
larger prisons, which often benefit from
economies of scale, can recover their
legitimate IPCS costs related to video
communications services.
62. The Commission seeks comment
on adopting quality of service standards
for IPCS including whether there should
be different standards or rules for
different types of facilities or providers.
The Commission seeks information on
the impact such rules may have on IPCS
providers for smaller facilities. The
Commission seeks comment on the
costs providers incur in providing
service to confinement facilities of all
sizes that are not correctional
institutions. Specifically, whether non-
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correctional confinement facilities have
cost characteristics that are substantially
similar to correctional facilities.
63. The Commission seeks comment
on whether any of the burdens
associated the filing, recordkeeping and
reporting requirements described above
can be minimized for small entities and
whether any of the costs associated with
the proposals in this summary
document can be alleviated for small
entities. The Commission will consider
the economic impact on small entities,
as identified in comments filed in
response to this summary and this
IRFA, in reaching its final conclusions
and promulgating rules in this
proceeding.
F. Federal Rules That May Duplicate,
Overlap, or Conflict With the Proposed
Rules
64. None.
IV. Ordering Clauses
65. Accordingly, it is ordered that,
pursuant to the authority contained in
sections 1, 2, 4(i)–(j), 201(b), 218, 220,
225, 255, 276, 403, and 716 of the
Communications Act of 1934, as
amended, 47 U.S.C. 151, 152, 154(i)–(j),
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Fmt 4702
Sfmt 9990
201(b), 218, 220, 225, 255, 276, 403, and
617, and the Martha Wright-Reed Just
and Reasonable Communications Act of
2022, Public Law 117–338, 136 Stat
6156 (2022), the FNPRM is adopted.
66. It is further ordered that, pursuant
to applicable procedures set forth in
§§ 1.415 and 1.419 of the Commission’s
Rules, 47 CFR 1.415, 1.419, interested
parties may file comments on the
FNPRM on or before 30 days after
publication of a summary of the FNPRM
in the Federal Register and reply
comments on or before 60 days after
publication of a summary of the FNPRM
in the Federal Register.
67. It is further ordered that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
the FNPRM, including the Initial
Regulatory Flexibility Analysis, to the
Chief Counsel for Advocacy of the Small
Business Administration.
Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. 2024–19038 Filed 9–18–24; 8:45 am]
BILLING CODE 6712–01–P
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Agencies
[Federal Register Volume 89, Number 183 (Friday, September 20, 2024)]
[Proposed Rules]
[Pages 77065-77074]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19038]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 64
[WC Docket Nos. 12-375, 23-62; FCC 24-75; FR ID 237560]
Incarcerated People's Communication Services; Implementation of
the Martha Wright-Reed Act; Rates for Interstate Inmate Calling
Services
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Communications Commission (Commission) seeks
additional comment on establishing permanent rate caps for video
incarcerated people's communications services (IPCS) that are just and
reasonable, and will fairly compensate IPCS providers, including
comment on the video IPCS marketplace and the types of data needed to
support its efforts to adopt permanent video IPCS rate caps in the
future. It also seeks comment on the possibly of further disaggregating
the very small jail rate tier and the types of cost or other data that
would identify any additional distinctions within this rate tier. The
Commission seeks comment on its authority to address quality of service
issues raised in this proceeding and whether it should develop minimum
Federal quality of service standards. It again seeks comment on whether
to expand the definitions of ``Prison'' and ``Jail'' to capture the
full universe of confinement facilities and specifically, the costs
providers incur in providing service to confinement facilities that are
not correctional institutions. It also seeks comment on whether to
[[Page 77066]]
incorporate into its inactive account rules a requirement that
providers allow account holders to designate a third party to receive
refunds from IPCS accounts. Finally, the Commission seeks comment on
possibly adopting a uniform additive to the IPCS rate caps to account
for correctional facility costs.
DATES: Comments are due on or before October 21, 2024; and reply
comments are due on or before November 19, 2024.
ADDRESSES: You may submit comments, identified by WC Docket Nos. 12-375
and 23-62, by either of the following methods:
Electronic filers: Comments may be filed electronically using the
internet by accessing the Commission's Electronic Comment Filing System
(ECFS): https://www.fcc.gov/ecfs.
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 courier, or by the U.S. Postal Service. All filings must
be addressed to the Secretary, Federal Communications Commission. Hand-
delivered or messenger-delivered paper filings for the Commission's
Secretary are accepted between 8 a.m. and 4 p.m. by the FCC's mailing
contractor at 9050 Junction Drive, Annapolis Junction, MD 20701. 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 courier deliveries (any deliveries not by the U.S.
Postal Service) must be sent to 9050 Junction Drive, Annapolis
Junction, MD 20701. Filings sent by U.S. Postal Service First-Class
Mail, Priority Mail, and Priority Mail Express must be sent to 45 L
Street NE, Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT: Stephen Meil, Pricing Policy Division
of the Wireline Competition Bureau, at (202) 418-7233 or via email at
[email protected].
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's
Further Notice of Proposed Rulemaking (FNPRM), document FCC 24-75,
adopted on July 18, 2024, and released on July 22, 2024, in WC Docket
Nos. 12-375 and 23-62. This summary is based on the public redacted
version of the FCC 24-75 document, the full text of which can be
accessed electronically via the FCC's Electronic Document Management
System (EDOCS) website at www.fcc.gov/edocs, or via the FCC's
Electronic Comment Filing System (ECFS) website at www.fcc.gov/ecfs, or
is available at the following internet address: https://docs.fcc.gov/public/attachments/FCC-24-75A1.pdf.
Synopsis
I. Further Notice of Proposed Rulemaking
A. Establishing Permanent Rate Caps for Video Services
1. In the 2024 IPCS Report and Order, published elsewhere in this
issue of the Federal Register, we determine that we do not have a
sufficient record or sufficiently reliable data from the 2023 Mandatory
Data Collection to set permanent rate caps for video IPCS. The
Commission identified anomalies in the video cost data (both industry-
wide and for Securus in particular) that suggest that there is
significant room for growth in this nascent market and that these data
were unlikely to be representative of longer term trends in the video
IPCS market. For these reasons, in the 2024 IPCS Report and Order, we
establish interim rates based on the best data available and delegate
authority to the Wireline Competition Bureau (WCB) and the Office of
Economics and Analytics (OEA) to conduct an additional mandatory data
collection to obtain updated cost and other data and information from
providers concerning their video IPCS offerings, among other things. We
now seek further comment on establishing permanent rate caps for video
IPCS that are just and reasonable, and will fairly compensate IPCS
providers. We emphasize that we will keep a close eye on developments
in the video IPCS marketplace, including how changes in it affect
people with disabilities. We anticipate receiving detailed information
on those developments as part of the IPCS providers' annual reports
once WCB and Consumer and Governmental Affairs Bureau (CGB) revise the
requirement for those reports in response to the 2024 IPCS Report and
Order. We also will be receiving detailed information regarding video
IPCS costs and demand and (to the extent practicable) how those costs
might change over time, once WCB and OEA implement the additional data
collection we require today. We ask interested parties to supplement
the record in this proceeding with any information they have regarding
the types of video communications services that providers offer
incarcerated people, the demand for those services, the used and useful
costs providers and facilities incur in the provision of those
services, and other information that might help us set just and
reasonable, and fairly compensatory, permanent rate caps for video
IPCS. While the course of this proceeding, including the Commission's
efforts regarding inmate calling services prior to the enactment of the
Martha Reed-Wright Act, make us acutely aware of all the steps involved
in determining just and reasonable, and fairly compensatory, permanent
rate caps, we intend to move quickly to complete that task with regard
to video IPCS once we have the requisite information.
2. In 2023, the Commission sought comment on how it could best
ensure that the rates and charges for video IPCS are just and
reasonable (88 FR 27850, May 3, 2023). We now invite further comment on
the video IPCS marketplace, including the types of costs incurred by
video IPCS providers and the pricing and other associated practices
under which such providers presently offer video services to
incarcerated people. What types of video communications services are
currently being offered to incarcerated people and what additional
video services are likely to be offered in the near future? Is there a
difference between video communications depending on the technology
used? For example, are kiosks the primary means of video IPCS or are
tablets more prevalent? What role does application-based video IPCS
play in the IPCS market and how is that role likely to change in the
future with increased deployment of tablets? Do providers use third-
party applications, or develop applications internally? Do providers
that develop such applications internally offset their development
costs by selling them to other providers? Are there trends favoring the
use of one technology over the other, for example, in costs,
deployment, or usage? Is there a cost difference between different
types of technologies, whether hardware-based or software-based, or
among different versions of the same types of technologies? Are these
technologies used in different ways? For example, are kiosks used more
commonly for on-site video visitation? Do different hardware or
software platforms entail differences in the manner in which video IPCS
is offered, for example, as to quality of service or the variety of
features offered with the service? Within the categories of safety and
security services that we identify as used and useful in the 2024 IPCS
Report and Order, are any such services or functions particular to
video IPCS that--given the developing nature of the market--are still
in the process of deployment or development?
3. We also seek comment on trends that may characterize the video
IPCS market. What trends are there, if any, in
[[Page 77067]]
the costs of providing video IPCS? Are the substantial investments
providers reported making in video equipment in the 2023 Mandatory Data
Collection continuing or is investment in them trending to more stable,
sustainable levels? Under what circumstances would it be appropriate to
determine that the market has reached a more mature stage, potentially
warranting the adoption of permanent, rather than interim, rates? What
trends are there, if any, in demand for video IPCS? To what extent are
providers' investments in and deployment of video equipment and network
architecture stimulating demand for video IPCS? Are there trends in the
costs of deploying these technologies as they become more widely
available? Are there trends in the relative usage of these technologies
to access video IPCS, including video visitation, versus other services
provided via the same technologies or platforms, such as educational or
entertainment services? How should we measure the relative use of these
technologies among different services? What proportion of equipment and
platform costs are devoted to providing video IPCS as compared to
providing other services? Given the common usage of these equipment and
platforms, what are appropriate methods for allocating costs among
video IPCS, audio IPCS, and other non-IPCS that use the same equipment
and platforms? What trends are there, if any, in providers' investment
in the platforms necessary to support the provision of video IPCS?
4. Additional Mandatory Data Collection. In the 2024 IPCS Report
and Order, we direct staff to conduct an additional mandatory data
collection to obtain updated data on video IPCS and the IPCS industry
in general. We seek comment on the types of data that would be most
helpful for the Commission to collect to support its efforts to adopt
permanent video IPCS rate caps in the future. We invite comment on any
changes the Commission should consider making to the 2023 Mandatory
Data Collection as it considers developing the additional data
collection. Are there any types of data that the Commission should
consider adding to that collection to ensure it meets the Commission's
needs? We also seek comment on the relative benefits and burdens that
collecting additional data would entail. Finally, we seek comment on
the appropriate timeframe in which to conduct this data collection to
ensure that the data we receive reflect a sufficiently mature video
IPCS market to be suitable as the basis for setting permanent video
IPCS rate caps.
B. Further Disaggregating the Very Small Jail Tier
5. In the 2024 IPCS Report and Order, we establish five rate cap
tiers based on facility type and size, based on the best evidence
available, in both the record and the data provided in the 2023
Mandatory Data Collection, reflecting the factors driving providers'
costs. Of the four size tiers for jails, the smallest size tier (i.e.,
for those jails with an average daily population of less than 100)
makes up approximately half of all jails for which we had available
data. Given the relative share of jail facilities comprising this tier,
we recognize that there may be additional distinctions within this tier
that are not effectively captured by the available data and that the
number of facilities in this tier, of necessity, limits the granularity
of the analysis for this smallest jail tier. For example, certain small
providers that serve very small jails failed to submit data in response
to the 2023 Mandatory Data Collection that we found to be reliable and
therefore excluded from our analysis. Although we find that the
available data are sufficiently robust for setting permanent audio rate
caps at the tiers we adopt in the 2024 IPCS Report and Order, obtaining
more reliable data from these providers may establish a better more
comprehensive understanding of the costs of serving this smallest tier
of jails. Commenters suggest that the smallest facilities are subject
to particularly high costs, due to, for example, more frequently being
located in rural areas. Accordingly, we seek comment on the types of
cost or other data that would be most helpful for the Commission to
collect from providers serving this tier of facilities to ascertain
whether, and if so how, to further disaggregate this tier to capture
any variability that may exist within segments of this tier. Are there
any particular types of data that the Commission should consider adding
to our subsequent data collection to ensure that it meets the
Commission's needs in this regard? We also seek comment on, if the data
suggests that this tier should be further disaggregated, how to do so
in a manner that accurately reflects providers' costs, but also
minimizes the burden on providers to administer or on consumers to
understand.
C. Quality of Service
6. Many commenters raise concerns in the record regarding the
quality of IPCS. Dropped calls, lack of enough communications devices
at facilities, frozen video screens, and other technological
shortcomings are ongoing challenges for incarcerated people and their
loved ones. As an initial matter, we seek comment on scope of the
Commission's authority to address quality of service issues related to
these communications services, including to establish and enforce
service quality rules or standards for the provision of IPCS. The
Commission long has relied on its section 201(b) authority to address
traffic delivery and call completion concerns. In addition, the
Commission has recognized that ``[a]n inherent part of any rate setting
process is not only the establishment of the rate level and rate
structure, but the definition of the service or functionality to which
the rate will apply.'' We thus believe that quality of service
considerations are within the purview of our establishment of a
compensation plan to ensure just and reasonable rates for IPCS under
section 276(b)(1)(A). Do commenters agree that our traditional sources
of statutory authority over these communications and providers--
sections 276 and 201--convey jurisdiction for the regulation of service
quality? Are there alternative statutory provisions on which we could
rely to regulate the service quality of IPCS? Does the source of our
authority differ depending on the type of communication, i.e., audio or
video IPCS?
7. Assuming the Commission has statutory bases to address service
quality issues, we seek comment on whether the Commission should
develop minimum Federal quality of service standards. If Federal
standards are warranted, how should such standards or rules be
developed? Should there be different standards or rules for different
types of facilities or providers? Should the Commission establish the
same or different standards for audio and video IPCS? Are there
technical considerations that may warrant different standards for video
services, or for different types of video services? How would the
Commission monitor and enforce such standards? Similarly, are there
service quality issues caused by factors beyond the control of the IPCS
provider, such as broadband congestion or network failures? If so, how
would Federal standards account for these factors?
8. We also seek comment on the types of service quality issues that
should be addressed by any Federal standards. Should the standards
simply address the most common issues reported in the record or attempt
to cover any issue that materially impacts the communication service?
If the Commission adopted service quality standards, how would
[[Page 77068]]
such standards be monitored and enforced and through what procedures?
Under what circumstances, if any, should the standards require refunds
to IPCS consumers?
9. Finally, are there any existing service quality standards or
regulations in the IPCS marketplace today? To the extent that parties
support adoption of Federal service quality standards, we anticipate
that existing standards or regulations might provide a model for
Federal efforts. Do prison and jail facilities currently have rules or
regulations in place to address the service quality of IPCS? Do
contracts between correctional institutions and providers include
service quality standards, and, if so, what kinds of standards and what
type of metrics for monitoring such standards are included? Have states
adopted any regulations designed to address service quality of
communications in correctional facilities? Parties should address these
and any additional issues related to the service quality of IPCS.
D. Expanding the Definitions of Prisons and Jails
10. In the 2024 IPCS Report and Order, we modify the definition of
``Jail'' to encompass all immigration detention facilities, but we
decline, at this time, to further expand the definitions of ``Prison''
and ``Jail'' in our rules, as requested by some parties, to capture the
full universe of confinement facilities such as civil commitment,
residential, group and nursing facilities. Several commenters support
expanding the definition of ``Jail'' to cover civil commitment
facilities, residential facilities, group facilities, and nursing
facilities in which people with disabilities, substance abuse problems,
or other conditions are routinely detained. In both 2022 and 2023, the
Commission sought comment on modifying the definitions of ``Jail'' and
``Prison'' in its rules ``to ensure that they capture the full universe
of confinement facilities.'' In addition, the Commission sought comment
in 2022 on its authority to apply the inmate calling services rules,
``including those addressing communication disabilities, to these
facilities.'' Although we agree that individuals in these facilities
should benefit from the protections of just and reasonable rate caps
and other consumer protection rules that we adopt here, we conclude
that the Commission lacks sufficient information and data to address
the requests. For this reason, we seek further comment on the costs
providers incur in providing service to confinement facilities that are
not correctional institutions.
11. Some parties contend that the definition of payphone service in
section 276 of the Communications Act is, in pertinent part, limited to
payphone service provided ``in correctional institutions'' and does not
extend to confinement facilities that allegedly are not
``correctional'' in nature. Others assert that the protections of our
rules should be extended to benefit individuals in confinement
facilities generally. We seek comment on whether our statutory
authority under section 276 can be interpreted to extend to confinement
facilities. Are there other sources of statutory authority that would
allow us to extend our regulations to cover these facilities?
12. Some parties contend that IPCS regulations should only apply to
``corrections-type communications systems'' because the various types
of confinement facilities may not have the same cost characteristics as
correctional facilities. We seek comment on whether confinement
facilities outside the scope of facilities historically encompassed by
our rules have cost characteristics that are substantially similar to
the facilities our rules traditionally have addressed. Do confinement
facilities make available communications services and impose similar
types of usage restrictions as correctional facilities? Parties
addressing these issues should detail any cost and service differences,
and how such differences might result in different rate caps for non-
correctional confinement facilities.
E. Treatment of Unused Balances In IPCS Accounts
13. In the 2024 IPCS Report and Order, we adopt permanent rules
designed to ensure that IPCS account holders receive refunds of any
unused funds in their accounts once the accounts are deemed inactive.
We invite comment on whether to incorporate into those rules a
requirement that providers allow account holders to designate a family
member or other individual as an additional person eligible to receive
refunds. We ask that commenters address the relative benefits and
burdens of such a measure. We also ask how we might tailor such a
measure to facilitate timely refunds without unduly burdening
providers. Should we, for example, require providers to give account
holders the opportunity to provide their designees' contact
information, including residential addresses, phone numbers, and email
addresses? Should we specify, in addition, that a designee receive any
inactivity and refund notices that would be provided to the account
holder and be allowed to request refunds on the account holder's
behalf?
F. Uniform Additive To Account for Correctional Facility Costs
14. We seek comment on whether we should adopt a uniform additive
to our IPCS rate caps to account for correctional facility costs. In
the 2024 IPCS Report and Order, we permit IPCS providers to reimburse
correctional facilities for the used and useful costs they may incur in
allowing access to IPCS. Some commenters express concern that the
reimbursement we permit may be difficult for IPCS providers to
implement, particularly in determining which costs are used and useful
for purposes of reimbursement. As an alternative, some commenters
propose the use of an ``explicit additive to the rate caps for audio
and video IPCS.'' Under this proposal, rather than permit IPCS
providers and correctional facilities to negotiate for reimbursement
under our current audio and video IPCS rates caps, the Commission would
adopt a uniform facility cost additive. One commenter suggests that
this approach ``would properly account for the security needs of
facilities (and corresponding costs caused by making IPCS available)''
and would ``help to ensure the continued widespread availability of
IPCS.'' We seek comment on this proposal, including the extent to which
an additive would be a reasonable method to ensure that correctional
facilities are able to recover the used and useful costs they incur in
making IPCS available. Is such an additive preferable to the freely-
negotiated reimbursement we allow in the 2024 IPCS Report and Order?
Why or why not? Would a uniform additive allow correctional facilities
to better adapt to the IPCS rate structure the Commission adopts in the
2024 IPCS Report and Order? Why or why not?
15. We seek broad comment on the contours of any possible rate
additive. In particular, we seek comment on the appropriate amount of a
rate additive for used and useful correctional facility costs. One
commenter suggests that $0.02 could be established as a maximum cost
recovery amount. This would be consistent with the approach the
Commission took for prisons and jails with average daily populations of
1,000 or more in the 2021 ICS Order (86 FR 40682, July 28, 2021). Pay
Tel's outside consultant, estimates, on the basis of an informal survey
of 30 correctional facilities with average daily populations below
1,000 that the average used and useful costs may be $0.08 per minute.
Which data should the Commission rely on in determining
[[Page 77069]]
the appropriate additive and why? To the extent commenters believe more
data are needed, should the Commission seek those data through an
additional data collection? How can we ensure that we receive reliable
data on correctional facilities' used and useful costs for purposes of
establishing a rate additive? Obtaining reliable correctional facility
cost data has been a perennial problem in these proceedings. In 2021,
the Commission sought comment on how to obtain reliable correctional
facility data (86 FR 40416, July 28, 2021). The Commission also sought
facility cost data in the 2023 Mandatory Data Collection. As we explain
above, however, commenters have not provided updated facility cost
data. Finally, we invite comment on how the Commission should implement
a rate additive within the zones of reasonableness determined in the
2024 IPCS Report and Order.
G. Effect on Small Entities
16. We seek comment on the effect that our proposals to adopt
permanent video IPCS rate caps, quality of service rules, and expanded
definitions of ``Prison'' and ``Jail'' in our rules would have on small
entities, and whether any rules that we adopt should apply differently
to small entities. We seek input on the effect, if any, on small
entities of any other issues upon which we inquire in this document. We
also seek comment on how we should take into account the impact on
small businesses and, in particular, any disproportionate impact or
unique burdens that small businesses may face, in effectuating the
questions and proposals in this document. Parties should also address
any alternative proposals that would minimize the burdens on small
businesses.
H. Digital Equity and Inclusion
17. The Commission, as part of its continuing effort to advance
digital equity for all, including people of color, persons with
disabilities, persons who live in rural or Tribal areas, and others who
are or have been historically underserved, marginalized, or adversely
affected by persistent poverty or inequality, invites comment on any
equity-related considerations and benefits (if any) that may be
associated with the proposals and issues discussed herein. Section 1 of
the Communications Act provides that the Commission ``regulat[es]
interstate and foreign commerce in communication by wire and radio so
as to make [such service] available, so far as possible, to all the
people of the United States, without discrimination on the basis of
race, color, religion, national origin, or sex.'' Specifically, we seek
comment on how our proposals may promote or inhibit advances in
diversity, equity, inclusion, and accessibility, as well as the scope
of the Commission's relevant legal authority. The term ``equity'' is
used here consistent with Executive Order 13985 as the consistent and
systematic fair, just, and impartial treatment of all individuals,
including individuals who belong to underserved communities that have
been denied such treatment, such as Black, Latino, and Indigenous and
Native American persons, Asian Americans and Pacific Islanders and
other persons of color; members of religious minorities; lesbian, gay,
bisexual, transgender, and queer (LGBTQ+) persons; persons with
disabilities; persons who live in rural areas; and persons otherwise
adversely affected by persistent poverty or inequality.
I. OPEN Government Data Act
18. We also seek comment on whether any of the information proposed
to be collected in this would constitute ``data assets'' for purposes
of the OPEN Government Data Act and, if so, whether such information
should be published as ``open Government data assets''?
II. Procedural Matters
19. Initial Regulatory Flexibility Analysis. As required by the
Regulatory Flexibility Act (RFA), the Commission has prepared an
Initial Regulatory Flexibility Analysis (IRFA) of the possible
significant economic impact on small entities by the policies and rules
proposed in this document. The Commission requests written public
comments on the IRFA. Comments must be identified as responses to the
IRFA and must be filed by the deadlines for comments provided in this
document. The Commission will send a copy of the FNPRM, including the
IRFA, to the Chief Counsel for Advocacy of the Small Business
Administration (SBA). In addition, the FNPRM and the IRFA (or summaries
thereof) will be published in the Federal Register.
20. Initial Paperwork Reduction Act (PRA) Analysis. This document
may contain new or modified information collection(s) subject to the
PRA. If the Commission adopts any new or modified information
collection requirements, they will be submitted to the Office of
Management and Budget (OMB) for review under section 3507(d) of the
PRA. OMB, the general public, and other Federal agencies are invited to
comment on the new or modified information collection requirements
contained in this proceeding. In addition, pursuant to the Small
Business Paperwork Relief Act of 2002, we seek specific comment on how
we might ``further reduce the information collection burden for small
business concerns with fewer than 25 employees.''
21. Providing Accountability Through Transparency Act. Consistent
with the Providing Accountability Through Transparency Act, Public Law
118-9, a summary of the FNPRM will be available on https://www.fcc.gov/proposed-rulemakings.
22. OPEN Government Data Act. The OPEN Government Data Act,
requires agencies to make ``public data assets'' available under an
open license and as ``open Government data assets,'' i.e., in machine-
readable, open format, unencumbered by use restrictions other than
intellectual property rights, and based on an open standard that is
maintained by a standards organization. This requirement is to be
implemented ``in accordance with guidance by the Director'' of the OMB.
The term ``public data asset'' means ``a data asset, or part thereof,
maintained by the Federal Government that has been, or may be, released
to the public, including any data asset, or part thereof, subject to
disclosure under [the Freedom of Information Act (FOIA)].'' A ``data
asset'' is ``a collection of data elements or data sets that may be
grouped together,'' and ``data'' is ``recorded information, regardless
of form or the media on which the data is recorded.'' We seek comment
in the FNPRM on whether any of the information proposed to be collected
would constitute ``data assets'' for purposes of the OPEN Government
Data Act and, if so, whether such information should be published as
``open Government data assets.''
23. Comment Period and Filing Procedures. Pursuant to sections
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 in the DATES section of this document. All filings
must refer to WC Docket Nos. 23-62 and 12-375. The Protective Order
issued in this proceeding permits parties to designate certain material
as confidential. Filings which contain confidential information should
be appropriately redacted, and filed pursuant to the procedure
described therein.
24. Electronic Filers: Comments may be filed electronically using
the internet by accessing the Commission's Electronic Comment Filing
System (ECFS): https://www.fcc.gov/ecfs. See
[[Page 77070]]
Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121
(1998).
25. 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.
26. Filings can be sent by hand or messenger delivery, by
commercial courier, or by the U.S. Postal Service. All filings must be
addressed to the Secretary, Federal Communications Commission.
27. Hand-delivered or messenger-delivered paper filings for the
Commission's Secretary are accepted between 8 a.m. and 4 p.m. by the
FCC's mailing contractor at 9050 Junction Drive, Annapolis Junction, MD
20701. All hand deliveries must be held together with rubber bands or
fasteners. Any envelopes and boxes must be disposed of before entering
the building.
28. Commercial courier deliveries (any deliveries not by the U.S.
Postal Service) must be sent to 9050 Junction Drive, Annapolis
Junction, MD 20701.
29. Filings sent by U.S. Postal Service First-Class Mail, Priority
Mail, and Priority Mail Express must be sent to 45 L Street NE,
Washington, DC 20554.
30. Comments and reply comments must include a short and concise
summary of the substantive arguments raised in the pleading. Comments
and reply comments must also comply with Sec. 1.49 and all other
applicable sections of the Commission's rules. We direct all interested
parties to include the name of the filing party and the date of the
filing on each page of their comments and reply comments. All parties
are encouraged to use a table of contents, regardless of the length of
their submission. We also strongly encourage parties to track the
organization set forth in the FNPRM in order to facilitate our internal
review process.
31. Ex Parte Rules. This proceeding shall be treated as a ``permit-
but-disclose'' proceeding in accordance with the Commission's ex parte
rules. 47 CFR 1.1200 through 1.1216. Persons making ex parte
presentations must file a copy of any written presentation or a
memorandum summarizing any oral presentation within two business days
after the presentation (unless a different deadline applicable to the
Sunshine period applies).
32. Persons making oral ex parte presentations are reminded that
memoranda summarizing the presentation must (1) list all persons
attending or otherwise participating in the meeting at which the ex
parte presentation was made, and (2) summarize all data presented and
arguments made during the presentation. If the presentation consisted
in whole or in part of the presentation of data or arguments already
reflected in the presenter's written comments, memoranda or other
filings in the proceeding, the presenter may provide citations to such
data or arguments in his or her prior comments, memoranda, or other
filings (specifying the relevant page and/or paragraph numbers where
such data or arguments can be found) in lieu of summarizing them in the
memorandum. Documents shown or given to Commission staff during ex
parte meetings are deemed to be written ex parte presentations and must
be filed consistent with Sec. 1.1206(b). In proceedings governed by
Sec. 1.49(f) or for which the Commission has made available a method
of electronic filing, written ex parte presentations and memoranda
summarizing oral ex parte presentations, and all attachments thereto,
must be filed through the electronic comment filing system available
for that proceeding, and must be filed in their native format (e.g.,
.doc, .xml, .ppt, searchable .pdf). Participants in this proceeding
should familiarize themselves with the Commission's ex parte rules.
33. 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 and Governmental Affairs Bureau at 202-418-0530.
34. Availability of Documents. Comments, reply comments, and ex
parte submissions will be publicly available online via ECFS.
III. Initial Regulatory Flexibility Analysis
35. As required by the RFA, the Commission has prepared this IRFA
of the possible significant economic impact on small entities by the
policies and rules proposed in this document. 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. The
Commission will send a copy of the FNPRM, including the IRFA, to the
Chief Counsel for Advocacy of the Small Business Administration (SBA).
In addition, the FNPRM and the IRFA (or summaries thereof) will be
published in the Federal Register.
A. Need for, and Objectives of, the Proposed Rules
36. The Commission seeks additional comment on establishing
permanent rate caps for video incarcerated people's communications
services (IPCS) that are just and reasonable, and will fairly
compensate IPCS providers. Specifically, the Commission requests that
parties supplement the record with additional information on the video
IPCS marketplace, including the types of video communications services
that providers offer incarcerated people, the demand for those
services, the used and useful costs providers and facilities incur in
the provision of those services, and other information that might help
us set just and reasonable, and fairly compensatory, permanent rate
caps for video IPCS. It also requests comment on the types of data that
would be most helpful for the Commission to collect to support its
efforts to adopt permanent video IPCS rate caps.
37. The Commission also seeks comment on quality of service issues
that have been raised in this proceeding. This includes comment on the
Commission's legal authority to address quality of service issues and
whether it should develop minimal quality of service standards. It
seeks comment on the types of service quality issues that should be
addressed and whether there should be different standards or rules for
different types of facilities or providers.
38. The Commission again seeks comment on revisions to its
definitions of ``Prison'' and ``Jail,'' and specifically, the costs
providers incur in providing service to confinement facilities that are
not correctional institutions. The Commission also seeks comment on
whether its statutory authority under section 276 can be interpreted to
extend to confinement facilities. Finally, the Commission seeks comment
on possibly obtaining additional data about serving very small jails,
the possible designation of a third party to receive refunds from IPCS
accounts and possibly adopting a uniform additive to the IPCS rate caps
to account for correctional facility costs.
B. Legal Basis
39. The proposed action is authorized pursuant to sections 1, 2,
4(i)-(j), 201(b), 218, 220, 225, 255, 276, and 403 of the
Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 154(i)-(j),
201(b), 218, 220, 225, 255, 276, 403, and 617 and the Martha Wright-
Reed Just and Reasonable Communications Act of 2022, Public Law 117-
338, 136 Stat 6156 (2022).
[[Page 77071]]
C. Description and Estimate of the Number of Small Entities to Which
the Proposed Rules Will Apply
40. 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 proposed rule revisions, if adopted. 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.
41. 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 SBA's 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 33.2
million businesses.
42. 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 2022, there were
approximately 530,109 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.
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 2022 Census of Governments indicate there were
90,837 local governmental jurisdictions consisting of general purpose
governments and special purpose governments in the United States. Of
this number, there were 36,845 general purpose governments (county,
municipal, and town or township) with populations of less than 50,000
and 11,879 special purpose governments (independent school districts)
with enrollment populations of less than 50,000. Accordingly, based on
the 2022 U.S. Census of Governments data, we estimate that at least
48,724 entities fall into the category of ``small governmental
jurisdictions.''
43. 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 Voice
over internet Protocol (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.
44. 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 2022 Universal Service
Monitoring Report, as of December 31, 2021, there were 4,590 providers
that reported they were engaged in the provision of fixed local
services. Of these providers, the Commission estimates that 4,146
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.
45. 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 2022 Universal Service
Monitoring Report, as of December 31, 2021, there were 4,590 providers
that reported they were engaged in the provision of fixed local
services. Of these providers, the Commission estimates that 4,146
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.
46. 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 an 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 2022 Universal Service
Monitoring Report, as of December 31, 2021, there were 4,590 providers
that reported they were fixed local exchange service providers. Of
these providers, the Commission estimates that 4,146 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.
47. 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 an 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
[[Page 77072]]
Commission data in the 2022 Universal Service Monitoring Report, as of
December 31, 2021, there were 1,212 providers that reported they were
incumbent local exchange service providers. Of these providers, the
Commission estimates that 916 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.
48. Competitive Local Exchange Carriers (CLECs). 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
2022 Universal Service Monitoring Report, as of December 31, 2021,
there were 3,378 providers that reported they were competitive local
service providers. Of these providers, the Commission estimates that
3,230 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.
49. 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 an 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 2022 Universal Service Monitoring Report, as of December 31,
2021, there were 127 providers that reported they were engaged in the
provision of interexchange services. Of these providers, the Commission
estimates that 109 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.
50. Local Resellers. Neither the Commission nor the SBA have
developed a small business size standard specifically for Local
Resellers. Telecommunications Resellers is the closest industry with an
SBA small business size standard. The Telecommunications Resellers
industry comprises establishments engaged in purchasing access and
network capacity from owners and operators of telecommunications
networks and reselling wired and wireless telecommunications services
(except satellite) to businesses and households. Establishments in this
industry resell telecommunications; they do not operate transmission
facilities and infrastructure. Mobile virtual network operators (MVNOs)
are included in this industry. The SBA small business size standard for
Telecommunications Resellers classifies a business as small if it has
1,500 or fewer employees. U.S. Census Bureau data for 2017 show that
1,386 firms in this industry provided resale services for the entire
year. Of that number, 1,375 firms operated with fewer than 250
employees. Additionally, based on Commission data in the 2022 Universal
Service Monitoring Report, as of December 31, 2021, there were 207
providers that reported they were engaged in the provision of local
resale services. Of these providers, the Commission estimates that 202
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.
51. Toll Resellers. Neither the Commission nor the SBA have
developed a small business size standard specifically for Toll
Resellers. Telecommunications Resellers is the closest industry with an
SBA small business size standard. The Telecommunications Resellers
industry comprises establishments engaged in purchasing access and
network capacity from owners and operators of telecommunications
networks and reselling wired and wireless telecommunications services
(except satellite) to businesses and households. Establishments in this
industry resell telecommunications; they do not operate transmission
facilities and infrastructure. MVNOs are included in this industry. The
SBA small business size standard for Telecommunications Resellers
classifies a business as small if it has 1,500 or fewer employees. U.S.
Census Bureau data for 2017 show that 1,386 firms in this industry
provided resale services for the entire year. Of that number, 1,375
firms operated with fewer than 250 employees. Additionally, based on
Commission data in the 2022 Universal Service Monitoring Report, as of
December 31, 2021, there were 457 providers that reported they were
engaged in the provision of toll services. Of these providers, the
Commission estimates that 438 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.
52. 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
2022 Universal Service Monitoring Report, as of December 31, 2021,
there were 90 providers that reported they were engaged in the
provision of other toll services. Of these providers, the Commission
estimates that 87 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.
53. Payphone Service Providers (PSPs). Neither the Commission nor
the SBA have developed a small business size standard specifically for
payphone service providers. Telecommunications Resellers is the closest
industry with an SBA small business size standard. The
Telecommunications Resellers industry comprises establishments engaged
in purchasing access and network capacity from owners and operators of
telecommunications networks and reselling wired and wireless
telecommunications services (except satellite) to businesses and
households. Establishments in this industry resell telecommunications;
they do not operate transmission facilities and
[[Page 77073]]
infrastructure. MVNOs are included in this industry. The SBA small
business size standard for Telecommunications Resellers classifies a
business as small if it has 1,500 or fewer employees. U.S. Census
Bureau data for 2017 show that 1,386 firms in this industry provided
resale services for the entire year. Of that number, 1,375 firms
operated with fewer than 250 employees. Additionally, based on
Commission data in the 2022 Universal Service Monitoring Report, as of
December 31, 2021, there were 36 providers that reported they were
engaged in the provision of payphone services. Of these providers, the
Commission estimates that 32 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.
54. Telecommunications Relay Service (TRS) Providers.
Telecommunications relay services enable individuals who are deaf, hard
of hearing, deafblind, or who have a speech disability to communicate
by telephone in a manner that is functionally equivalent to using voice
communication services. Internet-based TRS connects an individual with
a hearing or a speech disability to a TRS communications assistant
using an internet Protocol-enabled device via the internet, rather than
the public switched telephone network. Video Relay Service (VRS), one
form of internet-based TRS, enables people with hearing or speech
disabilities who use sign language to communicate with voice telephone
users over a broadband connection using a video communication device.
Internet Protocol Captioned Telephone Service (IP CTS) another form of
internet-based TRS, permits a person with hearing loss to have a
telephone conversation while reading captions of what the other party
is saying on an internet-connected device. A third form of internet-
based TRS, internet Protocol Relay Service (IP Relay), permits an
individual with a hearing or a speech disability to communicate in text
using an internet Protocol-enabled device via the internet, rather than
using a text telephone (TTY) and the public switched telephone network.
Providers must be certified by the Commission to provide VRS and IP CTS
and to receive compensation from the TRS Fund for TRS provided in
accordance with applicable rules. Analog forms of TRS, text telephone
(TTY), Speech-to-Speech Relay Service, and Captioned Telephone Service,
are provided through state TRS programs, which also must be certified
by the Commission.
55. Neither the Commission nor the SBA have developed a small
business size standard specifically for TRS Providers. All Other
Telecommunications is the closest industry with an SBA small business
size standard. Internet Service Providers (ISPs) and VoIP services, via
client-supplied telecommunications connections are 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 Commission data there
are 14 certified internet-based TRS providers and two analog forms of
TRS providers. The Commission however does not compile financial
information for these providers. Nevertheless, based on available
information, the Commission estimates that most providers in this
industry are small entities.
56. 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 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 $40 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.
D. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements for Small Entities
57. Establishing Permanent Rate Caps for Video IPCS. The Commission
seeks comments on establishing permanent video IPCS rates, including
updated marketplace and cost data. To the extent that permanent video
IPCS rate caps are lower than the interim rate caps and apply to all
types of facilities (including jails with average daily populations
below 1,000) as detailed in the 2024 IPCS Report and Order, IPCS video
providers (including any smaller entities) must comply with the new
rate caps.
58. Compliance with Quality of Service Rules. The Commission seeks
comment on adopting quality of service rules for IPCS. It also seeks
comment on whether there should be different standards or rules for
different types of facilities or providers. Thus, IPCS providers that
are small entities may be subject to any quality of service rules
ultimately adopted by the Commission.
59. Recordkeeping, Reporting, and Certification. The 2024 IPCS
Report and Order directs staff to conduct an additional mandatory data
collection to obtain updated data on video IPCS and the IPCS industry
in general. The Commission seeks comment on the types of data that
would be most helpful for it to collect to support its efforts to adopt
permanent video IPCS rate caps that are just and reasonable to
consumers, as well as ensuring fair compensation to providers. To the
extent the Commission imposes a new mandatory data collection,
providers of all sizes must maintain and report their cost data in
accordance with the Commission's rules. The Commission also seeks
comments on revising its definitions of ``Prison'' and ``Jail'' to
capture the full universe of confinement facilities. To the extent the
Commission expands these definitions as proposed, providers of
communication services to these facilities may be subject to the
Commission's regulations. We anticipate the information we receive in
comments including where requested, cost and benefit analyses, will
help the Commission identify and evaluate relevant compliance matters
for small entities, including compliance costs and other burdens that
may result from the proposals and inquiries we make herein.
E. Steps Taken To Minimize the Significant Economic Impact on Small
Entities and Significant Alternatives Considered
60. The RFA requires an agency to describe any significant,
alternatives that could minimize impacts to small entities 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
[[Page 77074]]
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.
61. The Commission seeks comments on establishing permanent rate
caps for video IPCS. Data are sought from providers servicing different
facility types and sizes, and information on how small providers
serving jails, which may be smaller, higher-cost facilities, and larger
prisons, which often benefit from economies of scale, can recover their
legitimate IPCS costs related to video communications services.
62. The Commission seeks comment on adopting quality of service
standards for IPCS including whether there should be different
standards or rules for different types of facilities or providers. The
Commission seeks information on the impact such rules may have on IPCS
providers for smaller facilities. The Commission seeks comment on the
costs providers incur in providing service to confinement facilities of
all sizes that are not correctional institutions. Specifically, whether
non-correctional confinement facilities have cost characteristics that
are substantially similar to correctional facilities.
63. The Commission seeks comment on whether any of the burdens
associated the filing, recordkeeping and reporting requirements
described above can be minimized for small entities and whether any of
the costs associated with the proposals in this summary document can be
alleviated for small entities. The Commission will consider the
economic impact on small entities, as identified in comments filed in
response to this summary and this IRFA, in reaching its final
conclusions and promulgating rules in this proceeding.
F. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
64. None.
IV. Ordering Clauses
65. Accordingly, it is ordered that, pursuant to the authority
contained in sections 1, 2, 4(i)-(j), 201(b), 218, 220, 225, 255, 276,
403, and 716 of the Communications Act of 1934, as amended, 47 U.S.C.
151, 152, 154(i)-(j), 201(b), 218, 220, 225, 255, 276, 403, and 617,
and the Martha Wright-Reed Just and Reasonable Communications Act of
2022, Public Law 117-338, 136 Stat 6156 (2022), the FNPRM is adopted.
66. It is further ordered that, pursuant to applicable procedures
set forth in Sec. Sec. 1.415 and 1.419 of the Commission's Rules, 47
CFR 1.415, 1.419, interested parties may file comments on the FNPRM on
or before 30 days after publication of a summary of the FNPRM in the
Federal Register and reply comments on or before 60 days after
publication of a summary of the FNPRM in the Federal Register.
67. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of the FNPRM, including the Initial Regulatory Flexibility
Analysis, to the Chief Counsel for Advocacy of the Small Business
Administration.
Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. 2024-19038 Filed 9-18-24; 8:45 am]
BILLING CODE 6712-01-P