[Federal Register Volume 63, Number 195 (Thursday, October 8, 1998)]
[Proposed Rules]
[Pages 54090-54100]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27060]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 43, 52, 54, and 64

[FCC 98-233]


1998 Biennial Regulatory Review--Streamlined Contributor 
Reporting Requirements

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: On September 25, 1998, the Federal Communications Commission 
released a Notice of Proposed Rulemaking (NPRM) that proposed to 
consolidate four Commission reporting requirements so that carriers 
need only file one worksheet to satisfy the reporting requirements 
associated with: the universal service support mechanisms; the 
telecommunications relay services support mechanism; the cost recovery 
mechanism for numbering administration; and the cost recovery mechanism 
for shared costs of long-term local number portability. Part of the 
Commission's 1998 biennial regulatory review, the item proposes limited 
changes to the Commission's rules to facilitate the introduction of a 
unified worksheet. The NPRM contains proposed or modified information 
collections subject to the Paperwork Reduction Act of 1995 (PRA). It 
has been submitted to the Office of Management and Budget (OMB) for 
review under the PRA. OMB, the general public, and other Federal 
agencies are invited to comment on the proposed or modified information 
collections contained in this proceeding.

DATES: Comments are due on or before October 30, 1998. Reply comments 
are due on or before November 16, 1998. Written comments by the public 
on the proposed information collections are due October 30, 1998, and 
reply comments are due November 16, 1998. Written comments must be 
submitted by the Office of Management and Budget (OMB) on the proposed 
information collections on or before December 7, 1998.

ADDRESSES: Comments and reply comments should be sent to the Office of 
the Secretary, Federal Communications Commission, 1919 M Street, NW, 
Suite 222, Washington, DC 20554, with a copy to Scott Bergmann of the 
Common Carrier Bureau, Federal Communications Commission, 2033 M 
Street, NW, Suite 500, Washington, DC 20554. Parties should also file 
one copy of any documents filed in this docket

[[Page 54091]]

with the Commission's copy contractor, International Transcription 
Services, Inc. (ITS), 1231 20th St., NW, Washington, DC 20037. In 
addition to filing comments with the Secretary, a copy of any comments 
on the information collections contained herein should be submitted to 
Judy Boley, Federal Communications Commission, Room 234, 1919 M Street, 
NW, Washington, DC 20554, or via the Internet to [email protected] and to 
Timothy Fain, OMB Desk Officer, 10236 NEOB, 725--17th Street, NW 
Washington, DC 20503 or via the Internet to [email protected].

FOR FURTHER INFORMATION CONTACT: Thomas J. Beers, Deputy Chief of the 
Industry Analysis Division, Common Carrier Bureau, at (202) 418-0952, 
or Scott K. Bergmann, Industry Analysis Division, Common Carrier 
Bureau, at (202) 418-7102.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking and Notice of Inquiry released September 25, 
1998 (FCC 98-233). The full text of the Notice of Proposed Rulemaking 
and Notice of Inquiry is available for inspection and copying during 
normal business hours in the FCC Reference Center, Room 239, 1919 M 
Street, Washington, DC 20554. The complete text also may be purchased 
from the Commission's copy contractor, International Transcription 
Service, Inc. (202) 857-3800, 1231 20th St., NW, Washington, DC 20036.

Paperwork Reduction Act

    This Notice of Proposed Rulemaking contains a proposed or modified 
information collection subject to the Paperwork Reduction Act of 1995 
(PRA). It has been 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 
proposed information collections contained in this proceeding.
    The Commission, as part of its continuing effort to reduce 
paperwork burdens, invites the general public and the Office of 
Management and Budget to comment on the information collections in this 
NPRM. Public and agency comments are due at the same time as other 
comments on the Notice of Proposed Rulemaking; OMB notification of 
action is due December 7, 1998. Comments should address: (a) whether 
the proposed collection of information is necessary for the proper 
performance of the functions of the Commission, including whether the 
information shall have practical utility; (b) the accuracy of the 
Commission's burden estimates; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burden of collection of information on respondents, 
including the use of automated collection techniques or other forms of 
information technology.
    OMB Approval Number: None.
    Title: ``Telecommunications Reporting Worksheet and Associated 
Requirements, CC Docket No. 98-171, NPRM''.
    Form Number: FCC Form 499.
    Type of Review: Proposed New Collection.
    Respondents: Business or other for profit, including small 
businesses.
    Burden Estimate:

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            Section/title               Respondents        Est. time per resp.              Annual burden
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(1) Telecommunications:
    Reporting Worksheet.............           5,000  6 hour......................  30,000 hours.
(2) De minimis and Documenting
 Procedures:
    Recordkeeping Requirement.......            1000  .25.........................  250 hours.
(3) Notification Req................            3000  .25.........................  750 hours.
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    Frequency: On occasion; annual; semi-annual; third party 
disclosures.
    Total Annual Burden: 31,000 total hours.
    Estimated Costs Per Respondent: Approximately $1.15.
    Needs and Uses: The information collections for which approval is 
sought would be used by the Commission and the administrators to 
calculate contributions to the universal service support mechanisms, 
the telecommunications relay services support mechanisms, the cost 
recovery for numbering administration, and the cost recovery for the 
shared costs of long-term local number portability. If the Commission 
adopts its proposal in the Streamlined Contributor Reporting 
Requirements NPRM, the proposed worksheet would replace four existing 
forms and the information requested in the proposed worksheet would not 
be otherwise available. Without such information, the Commission could 
not determine contributions to the support and cost recovery mechanisms 
and, therefore, could not fulfill its statutory responsibilities in 
accordance with the Communications Act of 1934, as amended.

Summary of the Notice of Proposed Rulemaking

    1. In the Notice of Proposed Rulemaking (NPRM) summarized here, we 
propose to simplify the Commission's filing requirements so that a 
single worksheet will replace several different forms currently filed 
with similar information. Under our existing rules, different filing 
and reporting requirements are associated with the Telecommunications 
Relay Services (TRS) Fund,1 federal universal service 
support mechanisms,2 the cost recovery mechanism for the 
North American Numbering Plan (NANP) administration,3 and 
the cost recovery mechanism for long-term local number portability 
(LNP) administration.4 Carriers and certain other providers 
of telecommunications services must satisfy these various requirements 
by filing different forms or worksheets, containing similar but not 
identical information, at different times, at different intervals, and 
in different locations.
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    \1\ 47 CFR 64.601 et seq.
    \2\ 47 CFR 54.1 et seq., 69.1 et seq.
    \3\ 47 CFR 52.1 et seq.
    \4\ 47 CFR 52.21 et seq.
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    2. Our existing multiple filing requirements impose real burdens on 
affected parties--burdens that we can significantly reduce by combining 
current contributor reporting worksheets into one unified 
Telecommunications Reporting Worksheet. Besides benefiting reporting 
entities, adopting a single worksheet also will reduce the public costs 
of regulation by conserving Commission staff resources associated with 
auditing and cross-checking data submissions. Such public cost 
reductions benefit not only regulated parties and the Commission, but 
American taxpayers generally. We initiate this proceeding and review of 
our rules as part of our 1998 biennial review of regulations as 
required by section 11 of the

[[Page 54092]]

Communications Act, as amended.5 Section 11 of the Act 
requires us to review all of our regulations applicable to providers of 
telecommunications services and determine whether any rule is no longer 
in the public interest as the result of meaningful economic competition 
between providers of telecommunications service.
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    \5\ 47 USC 161. The Communications Act of 1934, as amended, (the 
Communications Act or the Act) is codified at 47 USC 151 et seq.
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    3. In order to facilitate introduction of a unified 
Telecommunications Reporting Worksheet,6 we propose to: (1) 
Adopt a uniform schedule and location for filing contribution data; (2) 
encourage electronic filing of worksheets; (3) harmonize procedures for 
future changes to the proposed Telecommunications Reporting Worksheet; 
(4) authorize administrators to share contributor data in certain 
circumstances; (5) alter the revenue basis for assessing contributions 
to the TRS Fund and the NANP administration cost recovery mechanism; 
and (6) revise the minimum contribution requirements of the TRS Fund 
and the NANP administration cost recovery mechanism. In order to 
accomplish these changes, we propose limited changes to our rules 
7 governing the administration of the TRS Fund, the 
administration of universal service support mechanisms, the cost 
recovery for the NANP administration, and the cost recovery for local 
number portability administration. Finally, we seek to further reduce 
carrier filing burdens by allowing carriers to use the proposed 
Telecommunications Reporting Worksheet to designate agents for service 
of process pursuant to section 413 of the Communications Act of 1934, 
as amended,8 as well as to satisfy the reporting 
requirements of section 43.21(c) of our rules.9
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    \6\ The proposed Telecommunications Reporting Worksheet and 
accompanying instructions are attached to the Notice of Proposed 
Rulemaking as Appendix B.
    \7\ Proposed Rules are attached to the Notice of Proposed 
Rulemaking as Appendix A.
    \8\ 47 USC 413.
    \9\ 47 CFR 43.21(c). The Commission's rules are codified at 
Title 47 of the Code of Federal Regulations. 47 CFR 0.1 et seq.
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    4. With the limited exceptions noted above, we do not seek to 
revisit the substantive requirements of the four support and cost 
recovery mechanisms, the class of contributors to each mechanism, or 
the services whose revenues are included in contribution bases. Rather, 
the rulemaking focuses on steps to reduce burdens on contributors by 
improving the data collection process. In the Notice of Inquiry (NOI) 
portion of the proceeding, we request broader public comment on the 
feasibility and desirability of adopting other means to reduce 
contributor burdens, including possible use of a single billing and 
collection administrator for the TRS, universal service, NANP, and LNP 
support and cost recovery mechanisms.

II. Consolidating Contributor Reporting Requirements

A. Telecommunications Reporting Worksheet

    5. To consolidate collection of contribution data for the universal 
service support mechanism, the TRS Fund, and the cost recovery 
mechanisms for NANP and LNP administrations, we propose a unified 
worksheet. The proposed Telecommunications Reporting Worksheet would 
replace the existing worksheets, forms, or other methods of collecting 
data for contributions to these support and cost recovery mechanisms, 
and could be used by carriers to identify agents for service of process 
as required by section 413 of the Act and to provide the revenue and 
plant data required under Sec. 43.21(c) of the Commission's rules. We 
ask commenters to address the desirability of this proposal and to 
indicate whether such a unified worksheet would reduce the regulatory 
and administrative burden on reporting carriers and providers of 
telecommunications services. Alternatively, commenters should state 
whether any of these cost recovery mechanisms would be better served 
were we to continue collecting information through separate forms. We 
seek detailed comment on whether the items, set out in our proposed 
worksheet, are necessary and adequate to satisfy the underlying 
regulatory requirements on which contributions are based.
    6. We ask commenters to quantify any savings that would be realized 
by these efforts to consolidate the data reporting process. We 
encourage commenters to indicate whether there might be any class of 
contributors whose burden would be increased by the combined worksheet. 
In addition, we ask commenters to specify any information in our 
proposed worksheet that is either unnecessary or duplicative, as well 
as any information that is omitted from our proposal but that must be 
obtained for one of the above purposes. We direct commenters to 
consider whether any of the changes proposed below would alter existing 
contracts with any respective administrators, such that the Commission 
might need to revisit those contracts. In assessing the desirability of 
this proposal, we ask commenters to state whether any potential risks 
or problems might outweigh the benefits of this proposal.

B. Uniform Schedule and Location for Filing Contribution Data

    7. In our view, the utility of a consolidated worksheet would be 
significantly enhanced if carriers are able to file the form only once. 
As required in the filing instructions of the existing worksheets, 
currently contributors file the required worksheets at different times 
of the year. While the adoption of a single Telecommunications 
Reporting Worksheet makes possible a single filing date, we note that 
the universal service rules require that contributors file twice a year 
so that the Commission can develop contribution factors using 
relatively current information. We do not propose to disturb this 
procedure. Thus, carriers that are required to contribute to the 
universal service support mechanisms will continue to be required to 
file the new Telecommunications Reporting Worksheet on a semi-annual 
basis, in accordance with 47 CFR 54.711(a). Carriers exempt from 
contribution to the universal service support mechanism, but required 
to file for other purposes, would only file once a year. We propose 
that all carriers file the unified worksheet on April 1 of each year. 
We observe that most firms have closed their books for the prior 
calendar year in February or March. Thus, the April 1 date should allow 
most reporting carriers to prepare their submissions using audited data 
from closed books of account. While this would advance the date of 
filing for TRS purposes, we do not believe that this change would 
create a significant burden on contributors, particularly in light of 
the expected benefits of a uniform worksheet. We seek comment on this 
proposal. We also propose to revise the payment schedules for certain 
mechanisms so that payments to the TRS Fund and the NANPA and LNPA cost 
recovery mechanisms must be received by the first day of each month. If 
we adopt the proposed form, the Commission will incorporate this 
revised payment schedule when determining funding requirements and 
developing contribution factors. We seek comment on this proposal.

C. Basis for Assessing Contributions

    8. Contributions to each of the four support or cost recovery 
mechanisms are based on some measure of revenue. In each case, carriers 
or other contributors calculate the amount of

[[Page 54093]]

their contribution to a particular mechanism by determining their 
proportion of a specified funding basis (or revenue basis). Under our 
current rules, contributions to these mechanisms are not calculated 
using the same funding basis. Thus, for example, contributions to the 
universal service support mechanisms and the LNPA cost recovery are 
based on the contributor's end-user telecommunications revenues. In 
contrast, contributions to the TRS Fund are based on gross 
telecommunications revenue and contributions to the NANPA cost recovery 
are based on net telecommunications revenue.
    9. Telecommunications Relay Services. Congress, in section 225 of 
the Act, mandated that costs for interstate TRS be ``recovered from all 
subscribers for every interstate service.'' The Commission, in the TRS 
Third Report and Order, concluded that recovering interstate relay 
costs from all common carriers that provide interstate service on the 
basis of their gross interstate revenues would satisfy the statutory 
directive in section 225. As discussed below, the Commission considered 
basing TRS contribution on end-user telecommunications revenues, but, 
for reasons that we now reconsider, declined to adopt that revenue 
basis. Thus, contributions to the TRS Fund currently are made on the 
basis of the contributor's relative share of gross interstate 
telecommunications revenues.
    10. In light of the Commission's experience since the TRS Third 
Report and Order, we propose to change the revenue basis for the TRS 
Fund, so that contributors will base their contribution on end-user 
telecommunications revenue, instead of gross telecommunications 
revenue. We believe that basing contributions on an end-user 
telecommunications revenue basis is consistent with the statutory 
language of section 225 and its requirement that ``costs caused by 
interstate telecommunications relay services shall be recovered from 
all subscribers for every interstate service.'' The Commission has 
previously defined the term ``end-user telecommunications revenues'' to 
include not only all revenues from end-users, but also revenues derived 
from other sources, such as subscriber lines charges and revenues 
collected from carriers that purchase telecommunications services for 
their own internal use. We tentatively conclude that basing 
contributions to the TRS Fund on end-user telecommunications revenue 
will effectively carry out the mandate in section 225 that ``all 
subscribers'' of interstate services bear the cost of funding the 
interstate telecommunications relay services. We recognize that the TRS 
Fund administrator must collect and validate more data to administer 
contributions based on end-user telecommunications revenue, compared 
with contributions based on gross telecommunications revenue; however, 
this additional data will already be on the combined worksheet and 
therefore should represent little, if any, added burden to either 
contributors or the administrator. We seek comment on this tentative 
conclusion.
    11. North American Numbering Plan Administration. In the case of 
NANPA cost recovery, section 251(e) of the Act directs that ``[t]he 
cost of establishing telecommunications numbering administration 
arrangements and number portability shall be borne by all 
telecommunications carriers on a competitively neutral basis as 
determined by the Commission.'' The Commission, in the Local 
Competition Second Report and Order, required all telecommunications 
carriers to base their contributions to the NANPA cost recovery 
mechanism on net telecommunications revenues. That is, contributors 
must subtract from their gross telecommunications services revenues 
expenditures for all telecommunications services and facilities that 
had been paid to other telecommunications carriers. As described above, 
the Commission subsequently determined in the Universal Service Order 
that both a net telecommunications revenue basis, as currently used in 
numbering administration cost recovery, and an end-user 
telecommunications revenue basis, as used to calculate contributions 
for the universal service support mechanisms, are competitively 
neutral. The Commission opted to base contributions to the universal 
service support mechanisms on an end-user telecommunications revenues 
basis at least in part on the finding that calculating end-user 
telecommunications revenue would be more administratively efficient for 
reporting carriers and telecommunications providers.
    12. On the basis of the analysis contained in the Universal Service 
Order, we reconsider our earlier decision and tentatively conclude that 
we should adopt an end-user telecommunications revenue basis for the 
purposes of NANPA cost recovery mechanism. We believe that an end-user 
telecommunications revenue basis would satisfy the requirement in 
section 251(e) that telecommunications carriers contribute to the NANPA 
cost recovery mechanism on a competitively neutral basis. Because 
section 251(e)(2) requires that we select a competitively neutral basis 
for contributions, but specifies no other criteria that must be used in 
the selection, we tentatively conclude that we have discretion under 
the statute to choose among competitively neutral mechanisms based upon 
other valid regulatory goals, such as administrative efficiency. We 
seek comment on this tentative conclusion.

D. Minimum and Fixed Annual Contributions to NANPA and TRS Mechanisms

    13. We propose to revise our current requirements for minimum 
annual contributions by telecommunications carriers to the NANPA cost 
recovery. We propose a two-part structure for determining minimum 
contributions. We propose that telecommunications carriers with no end-
user telecommunications revenues make a fixed contribution of one 
hundred dollars ($100) per year to the NANPA cost recovery mechanism. 
We tentatively conclude that this proposal satisfies the statutory 
language in section 251(e)(2) that the ``cost of establishing 
telecommunications numbering administration arrangements * * * shall be 
borne by all telecommunications carriers on a competitively neutral 
basis * * *.''
    14. For those telecommunications carriers with any end-user 
telecommunications revenues, we propose to eliminate the minimum 
contribution rule because we are not certain that this amount is 
necessary to support the administrative costs of processing the 
worksheet and because of our desire to minimize burdens on the smallest 
carriers. Thus, we propose that these carriers simply calculate what 
they owe under our contribution formula and remit that amount, even if 
that amount is less than one hundred dollars ($100). We revisit, in the 
NPRM, the NANP Billing and Collection Agent's earlier decision 
regarding minimum contributions based on our experience with the NANPA 
and TRS mechanisms. We expect the administrative cost to process the 
NANPA worksheet to be less than one hundred dollars ($100) per 
worksheet. We further anticipate that the actions proposed here to 
streamline the contributor reporting process, particularly our 
proposals regarding electronic filing and sharing of information 
between administrators, will reduce administrative costs to process 
these worksheets. We seek comment about whether the costs to process 
this worksheet justify a

[[Page 54094]]

mandatory minimum contribution for the purposes of NANPA, other than 
that fixed contribution described above for carriers with no end-user 
telecommunications revenue.
    15. Telecommunications Relay Services. Pursuant to 
Sec. 64.604(c)(4)(iii) of the Commission's rules, every carrier 
providing interstate telecommunications services ``must contribute at 
least $100 per year.'' The Commission adopted this minimum contribution 
to maintain an ``efficiency of administration.''
    16. We propose to eliminate the one hundred dollar ($100) minimum 
contribution rule as applied to the TRS Fund. Under our proposal, 
subject carriers (i.e., those providing interstate telecommunications 
services) would simply calculate what they owe under our contribution 
formula and remit that amount. Our experience with the TRS Fund and the 
NANPA cost recovery mechanism has indicated that, under our current 
rules, many small carriers are required to make a minimum contribution 
that is disproportionately large based on their total 
telecommunications revenues. We believe that this proposed change will 
provide a significant benefit to small telecommunications carriers. We 
realize that in the rarest instances the amount of a carrier's 
contribution may actually be smaller than the cost to process the 
application. We believe, however, that this inefficiency is outweighed 
by the benefits received by small carriers. We seek comment on this 
proposal.

E. Procedures for Future Changes to the Telecommunications Reporting 
Worksheet

    17. We propose to delegate authority to make future changes to the 
Telecommunications Reporting Worksheet to the Chief of the Common 
Carrier Bureau. Should we adopt our proposal to combine the TRS Fund, 
NANP administration, LNP administration, and universal service support 
mechanism worksheets into one unified worksheet, it would be important 
to have a single, predetermined procedure for altering that worksheet. 
We believe that such changes will be necessary as an ordinary matter. 
For example, for the purposes of both the TRS Fund and the NANPA cost 
recovery, the Commission will need to revise the payment formulas on 
which contributions are based for each year. We believe it unnecessary 
for the Commission to review changes to the Telecommunications 
Reporting Worksheet that relate to these payment formulas or other 
ministerial tasks. Thus, we propose to amend our rules for the TRS 
Fund, NANP administration, LNP administration, and universal service 
support mechanisms, to include a specific delegation of authority to 
the Chief of the Common Carrier Bureau to make certain future changes 
to the combined worksheet. We seek comment on this proposal.

F. Authorize Sharing of Information Between Administrators

    18. We propose to permit the sharing of billing and collection 
information between the TRS, universal service, NANP, and LNP 
administrators. This proposal would permit administrators to cross-
check filed data and collection information where contributors are 
required to file for more than one purpose. We tentatively conclude 
that the administrators will benefit significantly from this 
flexibility. This proposal should reduce audit costs dramatically and 
should increase greatly the reliability of data on which contributions 
to these mechanisms are based. As an additional benefit, we also 
contemplate that this proposal might allow administrators to delegate 
certain functions, such that, e.g., one administrator might fulfill 
data entry and verification functions for more than one mechanism. At 
the same time, we propose to limit such sharing arrangements so as to 
ensure that proprietary information is not used for any improper 
purpose. Our proposed rule language would require that such agreements 
be approved by the Chief of the Common Carrier Bureau. We seek comment 
on this proposal.
    19. We further propose, as currently allowed under the Universal 
Service Worksheet, to permit carriers filing the Telecommunications 
Reporting Worksheet to certify that the revenue data contained in their 
submissions are privileged or confidential commercial or financial 
information and that disclosure of such information would likely cause 
substantial harm to the competitive position of the entity filing the 
worksheet. Carriers would be able to make this certification on their 
Telecommunications Reporting Worksheet and request Commission 
nondisclosure of information contained in the worksheet by checking a 
box on the Worksheet, in lieu of submitting a separate request pursuant 
to Sec. 0.459 of the Commission's rules. If the Commission receives a 
request for or proposes to disclose the information, the carrier would 
be required, of course, to make the full showing that our rules require 
in a request for withholding from public inspection information 
submitted to the Commission. All sharing arrangements entered into 
among administrators would have to provide that the administrators will 
comply with requests for confidential treatment of their data. We seek 
comment on this proposal.

G. Electronic Filing

    20. We propose to require the administrators to provide for and 
encourage electronic filing of the consolidated form. Electronic filing 
reduces data entry expenses for the administrator, reduces confusion, 
and might allow some mistakes to be detected before carriers file data. 
We anticipate that the administrators would be able to develop an 
electronic filing package that assists carriers with the compilation of 
data, calculation of totals and contribution amounts, and that provides 
contextual help. Such a package would greatly reduce the filing burden 
on small carriers and would greatly reduce data entry and validation 
costs for the administrators. We expect that electronic filing would 
reduce burdens on reporting carriers because they would be able to work 
from the electronic copy of their prior year's filing and modify only 
the information that has changed, rather than reentering all of the 
information for every filing. Also, we envision that electronic filing 
software could eventually calculate TRS, NANPA, and LNPA contributions 
for the filers. We note that this proposal is consistent with the 
directives of the Office of Management and Budget (OMB).
    21. We expect that any transition to an electronic filing system 
would require considerable coordination between the administrators, the 
telecommunications industry, and the Commission. We note that the 
technical details of how electronic filing is accomplished can be 
complex and expensive for both the administrators and reporting 
carriers. We seek comment on the nature and extent of these 
administrative costs. We seek specific recommendations on the 
appropriate time frame for development of electronic filing mechanisms 
and we ask commenters to consider any increased burden on the 
administrators and whether the Commission might need to adjust existing 
contracts with administrators to provide for this function.
    22. In addition, we are committed to making electronic filing and 
other electronic applications accessible to persons with disabilities 
to the fullest extent possible. We note that electronic filing is 
subject to program accessibility requirements of section 1.850 of our 
rules. In addition Congress has revised the requirements for access by 
persons with disabilities to federal information

[[Page 54095]]

technology programs in the Workforce Investment Act of 
1998.10 We recognize that, in some instances, it may be 
difficult for persons with disabilities to access components of the 
proposed electronic filing. In particular, the accessibility of forms 
and certain types of electronic files raises complex technical issues. 
We will continue to work on these issues and fully expect that with 
advances in technology, we will be able to enhance the accessibility to 
persons with disabilities.
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    \10\ Workforce Investment Act of 1998, Pub. L. 105-220, 112 
Stat. 936 (Aug. 7, 1998). Section 508 of the Act provides that 
persons with disabilities and non-disabled persons must have 
comparable access and ability to use technology and electronic 
information, and federal agencies must take steps to ensure such 
comparable access for persons with disabilities unless an undue 
burden would be imposed. If an undue burden would be imposed, the 
agency must provide an alternative means of access that allows for 
persons with disabilities to access and use the information.
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III. Notice of Inquiry

    23. We issue the Notice of Inquiry to investigate additional steps 
we could take that might allow us to further rationalize the 
contribution mechanisms currently in place and reduce filing burdens on 
parties. We invite commenters to bring to our attention any such 
suggestions that would reduce burdens and maximize the efficiency of 
the contributor reporting requirements process, while maintaining 
accuracy and accountability in the administration of the mechanisms. In 
particular, we ask commenters to consider whether the Commission should 
consolidate all billing and collection functions for the four support 
and cost recovery mechanisms with a single agent. Under such a plan, a 
single billing and collection agent would have no responsibilities over 
the administration of the TRS Fund, the maintenance of universal 
service, the administration of numbering resources, or the maintenance 
of local number portability databases. A billing and collection agent 
would be charged with efficiently collecting contributions from all 
subject contributors.
    24. We note that the Commission has taken other actions to promote 
efficiency and accountability in administration of the support and cost 
recovery mechanisms. For example, in the universal service proceeding, 
the Commission recently proposed that a single entity, USAC, administer 
universal service support for rural health care providers and schools 
and libraries, as well as the high cost and low income support 
mechanisms. We ask commenters to consider whether adoption of a single 
agent to perform billing and collection functions on a consolidated 
basis for the four support and cost recovery mechanisms would reduce 
administrative costs, lead to greater accountability, and promote the 
efficient and effective administration of the support and cost recovery 
mechanisms. In the NPRM, we ask parties to address a number of specific 
questions related to this proposal.

IV. Procedural Matters

A. Initial Paperwork Reduction Act Analysis

    25. The Notice of Proposed Rulemaking contains a proposal to reduce 
existing information collections. As part of our continuing effort to 
reduce paperwork burdens, we invite the general public and the Office 
of Management and Budget (OMB) to take this opportunity to comment on 
the proposals contained in the Notice of Proposed Rulemaking, as 
required by the Paperwork Reduction Act of 1995, Pub. L. 104-13. Public 
and agency comments are due at the same time as other comments on the 
Notice of Proposed Rulemaking; OMB comments are due 60 days from the 
date of the publication of this summary of the Notice of Proposed 
Rulemaking in the Federal Register. Comments should address: (a) 
whether the proposed collection of information is necessary for the 
proper performance of the functions of the Commission, including 
whether the information shall have practical utility; (b) the accuracy 
of the Commission's burden estimates; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burden of collection of information on respondents, 
including the use of automated collection techniques or other forms of 
information technology.

B. Initial Regulatory Flexibility Act Analysis

    26. As required by the Regulatory Flexibility Act 
(RFA),11 the Commission has prepared an Initial Regulatory 
Flexibility Analysis (IRFA) of the possible significant economic impact 
on small entities of the policies and rules proposed in the NPRM. A 
copy of the IRFA is attached to this summary. Written public comments 
are requested with respect to the IRFA. These comments must be filed in 
accordance with the same filing deadlines for comments on the rest of 
the NPRM and they must have a separate and distinct heading, 
designating the comments as responses to the IRFA. The Office of Public 
Affairs, Reference Operations Division, will send a copy of the NPRM 
and Notice of Inquiry, including the IRFA, to the Chief Counsel for 
Advocacy of the Small Business Administration.
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    \11\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et. seq., has 
been amended by the Contract With America Advancement Act of 1996, 
Public Law 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the 
CWAAA is the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA).
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C. Ex Parte Presentations

    27. This proceeding will be treated as a ``permit-but-disclose'' 
proceeding subject to the ``permit-but-disclose'' requirements under 
Sec. 1.1206 of the Commission's rules, as revised.12 
Additional rules pertaining to oral and written presentations are set 
forth in section 1.1206.
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    \12\ 47 CFR 1.1206.
---------------------------------------------------------------------------

D. Comment Filing Procedures

    28. General. Pursuant to Secs. 1.415 and 1.419 of the Commission's 
rules, 47 CFR 1.415, 1.419, interested parties may file comments on 
before October 30, 1998, and reply comments on or before November 16, 
1998. Comments may be filed using the Commission's Electronic Comment 
Filing System (ECFS) or by filing paper copies.
    29. Comments filed through the ECFS can be sent as an electronic 
file via the Internet to <http://www.fcc.gov/e-file/ecfs.html>. 
Generally, only one copy of an electronic submission must be filed. If 
multiple docket or rulemaking numbers appear in the caption of this 
proceeding, however, commenters must transmit one electronic copy of 
the comments to each docket or rulemaking number referenced in the 
caption. In completing the transmittal screen, commenters should 
include their full name, Postal Service mailing address, and the 
applicable docket or rulemaking number. Parties may also submit an 
electronic comment by Internet e-mail. To get filing instructions for 
e-mail comments, commenters should send an e-mail to [email protected], and 
should include the following words in the body of the message, ``get 
form .'' A sample form and directions will be sent 
in reply.
    30. Parties who choose to file by paper must file an original and 
four copies of each filing. If more than one docket or rulemaking 
number appear in the caption of this proceeding, commenters must submit 
two additional copies for each additional docket or rulemaking number. 
All filings must be sent to the Commission's Secretary, Magalie Roman 
Salas, Office of the Secretary, Federal Communications Commission, 1919 
M St. NW, Room 222, Washington, DC 20554, with a copy

[[Page 54096]]

to: Scott K. Bergmann, Common Carrier Bureau, Industry Analysis 
Division, 2033 M Street, NW, Room 500, Washington, DC 20554.
    31. Parties who choose to file by paper should also submit their 
comments on diskette. These diskettes should be submitted to: Ms. Terry 
Conway, Common Carrier Bureau, Industry Analysis Division, 2033 M 
Street, NW, Room 500, Washington, DC 20554. Such a submission should be 
on a 3.5 inch diskette formatted in an IBM compatible format using 
WordPerfect 5.1 for Windows or compatible software. The diskette should 
be accompanied by a cover letter and should be submitted in ``read 
only'' mode. The diskette should be clearly labelled with the 
commenter's name, proceeding (including the lead docket number in this 
case (CC Docket No. 98-171)), type of pleading (comment or reply 
comment), date of submission, and the name of the electronic file on 
the diskette. The label should also include the following phrase ``Disk 
Copy--Not an Original.'' Each diskette should contain only one party's 
pleadings, preferably in a single electronic file. In addition, 
commenters must send diskette copies to the Commission's copy 
contractor, International Transcription Service, Inc., 1231 20th 
Street, NW, Washington, DC 20037.

List of Subjects

47 CFR Parts 1 and 43

    Communications common carriers, Reporting and recordkeeping 
requirements, Telecommunications, Telephone.

47 CFR Part 52

    Communications common carriers, Numbering administration, Number 
portability, Reporting and recordkeeping requirements, 
Telecommunications, Telephone.

47 CFR Part 54

    Communications common carriers, Reporting and recordkeeping 
requirements, Telecommunications, Telephone, Universal service.

47 CFR Part 64

    Communications common carriers, Reporting and recordkeeping 
requirements, Telecommunications, Telecommunications relay services, 
Telephone.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Attachment--Initial Regulatory Flexibility Act Analysis

    1. As required by the Regulatory Flexibility Act 
(RFA),1 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 the 
NPRM. Written public comments are requested on the IRFA. Comments 
must be identified as responses to the IRFA and must be filed by the 
deadlines for comments on the NPRM provided above on the first page. 
The Commission will send a copy of the NPRM, including the IRFA, to 
the Chief Counsel for Advocacy of the Small Business 
Administration.2
---------------------------------------------------------------------------

    \1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et. seq., has 
been amended by the Contract With America Advancement Act of 1996, 
Pub. L. 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the CWAAA 
is the Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA).
    \2\ See 5 U.S.C. 603(a).
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I. Need for, and Objectives of, the Proposed Action

    2. The Commission undertakes this examination of its contributor 
reporting requirements 3 as a part of its 1998 biennial 
review of regulations as required by section 11 of the 
Communications Act, as amended.4 The NPRM proposes to 
simplify the Commission's filing requirements so that a single 
worksheet will replace several different forms currently filed under 
our existing rules associated with the Telecommunications Relay 
Services (TRS) Fund,5 federal universal service support 
mechanisms,6 the cost recovery mechanism for the North 
American Numbering Plan (NANP) administration,7 and the 
cost recovery mechanism for long-term local number portability (LNP) 
administration.8 Our objective is to reduce or eliminate 
unnecessary or duplicative regulatory requirements as competition 
supplants the need for such requirements, consistent with section 11 
of the Communications Act, as amended,9 and the 
Telecommunications Act of 1996.10 The Commission 
tentatively concludes that it can reduce regulatory burdens imposed 
by the existing multiple filing requirements by combining current 
contributor reporting worksheets into one unified Telecommunications 
Reporting Worksheet.
---------------------------------------------------------------------------

    \3\ See 47 CFR 64.601 et seq.; 47 CFR 54.1 et seq.; 47 CFR 52.1 
et seq.; 47 CFR 52.21 et seq.
    \4\ 47 U.S.C. 161.
    \5\ 47 CFR 64.601 et seq.
    \6\ 47 CFR 54.1 et seq., 69.1 et seq.
    \7\ 47 CFR 52.1 et seq.
    \8\ 47 CFR 52.21 et seq.
    \9\ 47 U.S.C. 161.
    \10\ Telecommunications Act of 1996, Pub. L. 104-104, 110 Stat. 
56 (1996 Act), codified at 47 U.S.C. 151 et seq. See Joint 
Explanatory Statement of the Committee of Conference, S. Conf. Rep. 
No. 230, 104th Cong., 2d Sess. 113 (1996) (Joint Explanatory 
Statement).
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II. Legal Basis

    3. The legal basis for the action as proposed for this 
rulemaking is contained in sections 1, 4(i), 4(j), 11, 201-205, 210, 
214, 218, 225, 251, 254, 303(r), 332, and 403 of the Communications 
Act of 1934, as amended, 47 U.S.C. 151, 154(i), 154(j), 161, 201-
205, 210, 214, 218, 225, 251, 254, 303(r), 332 and 403.

III. Description and Estimate of the Number of Small Entities to 
Which the Proposed Action May Apply

    4. The Commission's contributor reporting requirements apply to 
a wide rage of entities, including all telecommunications carriers 
and other providers of interstate telecommunications that offer 
telecommunications for a fee.11 Thus, we expect that the 
proposals set forth in this proceeding may have an economic impact 
on a substantial number of small entities. The economic impact of 
these proposals would, of course, be a positive and beneficial 
impact, in the form of reduced regulatory burdens and recordkeeping 
requirements, for these entities.
---------------------------------------------------------------------------

    \11\ 47 CFR 52.17 (applying to all telecommunications carriers), 
52.32 (applying to all telecommunications carriers), 54.703 
(applying to every telecommunications carrier that provides 
interstate telecommunications services, every provider of interstate 
telecommunications that offers telecommunications for a fee on a 
non-common carrier basis, and certain payphone providers), 
64.604(c)(4)(iii)(A) (applying to every carrier providing interstate 
telecommunications services). We note that the Commission's rules 
for universal service exempt certain small contributors, i.e., 
contributors that have revenue below a stated threshold. 47 CFR 
54.705.
---------------------------------------------------------------------------

    5. To estimate the number of small entities that would benefit 
from this positive economic impact, we first consider the statutory 
definition of ``small entity'' under the RFA. The RFA generally 
defines ``small entity'' as having the same meaning as the term 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' 12 In addition, the term ``small 
business'' has the same meaning as the term ``small business 
concern'' under the Small Business Act, unless the Commission has 
developed one or more definitions that are appropriate to its 
activities.13 Under the Small Business Act, a ``small 
business concern'' is one that: (1) Is independently owned and 
operated; (2) is not dominant in its field of operation; and (3) 
meets any additional criteria established by the Small Business 
Administration (SBA).14 The SBA has defined a small 
business for Standard Industrial Classification (SIC) categories 
4812 (Radiotelephone

[[Page 54097]]

Communications) and 4813 (Telephone Communications, Except 
Radiotelephone) to be small entities when they have no more than 
1,500 employees.15 We first discuss the number of small 
telephone companies falling within these SIC categories, then 
attempt to refine further those estimates to correspond with the 
categories of telephone companies that are commonly used under our 
rules. We expect that not all of the entities within a given 
category necessarily offer carrier services or interstate 
telecommunications services for a fee. Nevertheless, out of an 
abundance of caution, we analyze a wide range of categories in an 
effort to identify the greatest number of small entities possible 
that could be effected by the proposals in the NPRM.
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    \12\ 5 U.S.C. 601(6).
    \13\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small business concern'' in 5 U.S.C. 632). Pursuant to 5 U.S.C. 
601(3), the statutory definition of a small business applies 
``unless an agency after consultation with the Office of Advocacy of 
the Small Business Administration and after opportunity for public 
comment, establishes one or more definitions of such term which are 
appropriate to the activities of the agency and publishes such 
definition in the Federal Register.''
    \14\ 15 U.S.C. 632. See, e.g., Brown Transport Truckload, Inc. 
v. Southern Wipers, Inc., 176 B.R. 82 (N.D. Ga. 1994).
    \15\ 13 CFR 121.201.
---------------------------------------------------------------------------

    6. The most reliable source of information regarding the total 
numbers of certain common carrier and related providers nationwide, 
as well as the numbers of commercial wireless entities, appears to 
be data the Commission publishes annually in its Telecommunications 
Industry Revenue report, regarding the Telecommunications Relay 
Service (TRS).16 According to data in the most recent 
report, there are 3,459 interstate carriers.17 These 
carriers include, inter alia, local exchange carriers, wireline 
carriers and service providers, interexchange carriers, competitive 
access providers, operator service providers, pay telephone 
operators, providers of telephone toll service, providers of 
telephone exchange service, and resellers.
---------------------------------------------------------------------------

    \16\ FCC, Telecommunications Industry Revenue: TRS Fund 
Worksheet Data, Figure 2 (Number of Carriers Paying Into the TRS 
Fund by Type of Carrier) (Nov. 1997) (Telecommunications Industry 
Revenue).
    \17\ Id.
---------------------------------------------------------------------------

    7. Although some affected incumbent local exchange carriers 
(ILECs) may have 1,500 or fewer employees, we do not believe that 
such entities should be considered small entities within the meaning 
of the RFA because they are either dominant in their field of 
operations or are not independently owned and operated, and 
therefore by definition not ``small entities'' or ``small business 
concerns'' under the RFA. Accordingly, our use of the terms ``small 
entities'' and ``small businesses'' does not encompass small ILECs. 
Out of an abundance of caution, however, for regulatory flexibility 
analysis purposes, we will separately consider small ILECs within 
this analysis and use the term ``small ILECs'' to refer to any ILECs 
that arguably might be defined by the SBA as ``small business 
concerns.'' 18
---------------------------------------------------------------------------

    \18\ See 13 CFR 121.201, SIC Code 4813. Since the time of the 
Commission's 1996 decision, Implementation of the Local Competition 
Provisions in the Telecommunications Act of 1996, First Report and 
Order, 11 FCC Rcd 15499, 16144-45 (1996), 61 FR 45476 (August 29, 
1996), the Commission has consistently addressed in its regulatory 
flexibility analyses the impact of its rules on such ILECs.
---------------------------------------------------------------------------

    8. Total Number of Telephone Companies Affected. The United 
States Bureau of the Census (``the Census Bureau'') reports that, at 
the end of 1992, there were 3,497 firms engaged in providing 
telephone services, as defined therein, for at least one 
year.19 This number contains a variety of different 
categories of carriers, including local exchange carriers, 
interexchange carriers, competitive access providers, cellular 
carriers, mobile service carriers, operator service providers, pay 
telephone operators, PCS providers, covered SMR providers, and 
resellers. It seems certain that some of those 3,497 telephone 
service firms may not qualify as small entities or small incumbent 
LECs because they are not ``independently owned and operated.'' 
20 For example, a PCS provider that is affiliated with an 
interexchange carrier having more than 1,500 employees would not 
meet the definition of a small business. It seems reasonable to 
conclude, therefore, that fewer than 3,497 telephone service firms 
are small entity telephone service firms or small incumbent LECs 
that may be affected by the NPRM.
---------------------------------------------------------------------------

    \19\ United States Department of Commerce, Bureau of the Census, 
1992 Census of Transportation, Communications, and Utilities: 
Establishment and Firm Size, at Firm Size 1-123 (1995) (1992 
Census).
    \20\ 15 U.S.C. 632(a)(1).
---------------------------------------------------------------------------

    9. Wireline Carriers and Service Providers. SBA has developed a 
definition of small entities for telephone communications companies 
other than radiotelephone companies. The Census Bureau reports that, 
there were 2,321 such telephone companies in operation for at least 
one year at the end of 1992.21 According to SBA's 
definition, a small business telephone company other than a 
radiotelephone company is one employing no more than 1,500 
persons.22 All but 26 of the 2,321 non-radiotelephone 
companies listed by the Census Bureau were reported to have fewer 
than 1,000 employees. Thus, even if all 26 of those companies had 
more than 1,500 employees, there would still be 2,295 non-
radiotelephone companies that might qualify as small entities or 
small incumbent LECs. Although it seems certain that some of these 
carriers are not independently owned and operated, we are unable at 
this time to estimate with greater precision the number of wireline 
carriers and service providers that would qualify as small business 
concerns under SBA's definition. Consequently, we estimate that 
there are fewer than 2,295 small entity telephone communications 
companies other than radiotelephone companies that may be affected 
by the proposals recommended for adoption in the NPRM.
---------------------------------------------------------------------------

    \21\ 1992 Census, supra, at Firm Size 1-123.
    \22\ 13 CFR 121.201, SIC Code 4813.
---------------------------------------------------------------------------

    10. Local Exchange Carriers. Neither the Commission nor SBA has 
developed a definition of small providers of local exchange services 
(LECs). The closest applicable definition under SBA rules is for 
telephone communications companies other than radiotelephone 
(wireless) companies. The most reliable source of information 
regarding the number of LECs nationwide of which we are aware 
appears to be the data that we collect annually in connection with 
the Telecommunications Relay Service (TRS).23 According 
to our most recent data, 1,371 companies reported that they were 
engaged in the provision of local exchange services.24 
Although it seems certain that some of these carriers are not 
independently owned and operated, or have more than 1,500 employees, 
we are unable at this time to estimate with greater precision the 
number of LECs that would qualify as small business concerns under 
SBA's definition. Consequently, we estimate that there are fewer 
than 1,371 small entity LECs or small incumbent LECs that may be 
affected by the proposals recommended for adoption in the NPRM.
---------------------------------------------------------------------------

    \23\ See 47 CFR 64.601 et seq.
    \24\ Telecommunications Industry Revenue at Fig. 2.
---------------------------------------------------------------------------

    11. Interexchange Carriers. Neither the Commission nor SBA has 
developed a definition of small entities specifically applicable to 
providers of interexchange services (IXCs). The closest applicable 
definition under SBA rules is for telephone communications companies 
other than radiotelephone companies.25 The most reliable 
source of information regarding the number of IXCs nationwide of 
which we are aware appears to be the data that we collect annually 
in connection with TRS. According to our most recent data, 143 
companies reported that they were engaged in the provision of 
interexchange services.26 Although it seems certain that 
some of these carriers are not independently owned and operated, or 
have more than 1,500 employees, we are unable at this time to 
estimate with greater precision the number of IXCs that would 
qualify as small business concerns under SBA's definition. 
Consequently, we estimate that there are fewer than 143 small entity 
IXCs that may be affected by the proposals recommended for adoption 
in the NPRM.
---------------------------------------------------------------------------

    \25\ 13 CFR 121.210, SIC Code 4813.
    \26\ Telecommunications Industry Revenue at Fig. 2.
---------------------------------------------------------------------------

    12. Competitive Access Providers. Neither the Commission nor SBA 
has developed a definition of small entities specifically applicable 
to providers of competitive access services (CAPs). The closest 
applicable definition under SBA rules is for telephone 
communications companies other than radiotelephone companies. The 
most reliable source of information regarding the number of CAPs 
nationwide of which we are aware appears to be the data that we 
collect annually in connection with the TRS. According to our most 
recent data, 109 companies reported that they were engaged in the 
provision of competitive access services.27 Although it 
seems certain that some of these carriers are not independently 
owned and operated, or have more than 1,500 employees, we are unable 
at this time to estimate with greater precision the number of CAPs 
that would qualify as small business concerns under SBA's 
definition. Consequently, we estimate that there are fewer than 109 
small entity CAPs that may be affected by the proposals recommended 
for adoption in the NPRM.
---------------------------------------------------------------------------

    \27\ Telecommunications Industry Revenue at Fig. 2.
---------------------------------------------------------------------------

    13. Operator Service Providers. Neither the Commission nor SBA 
has developed a definition of small entities specifically applicable 
to providers of operator services.

[[Page 54098]]

The closest applicable definition under SBA rules is for telephone 
communications companies other than radiotelephone companies. The 
most reliable source of information regarding the number of operator 
service providers nationwide of which we are aware appears to be the 
data that we collect annually in connection with the TRS. According 
to our most recent data, 27 companies reported that they were 
engaged in the provision of operator services.28 Although 
it seems certain that some of these companies are not independently 
owned and operated, or have more than 1,500 employees, we are unable 
at this time to estimate with greater precision the number of 
operator service providers that would qualify as small business 
concerns under SBA's definition. Consequently, we estimate that 
there are fewer than 27 small entity operator service providers that 
may be affected by the proposals recommended for adoption in the 
NPRM.
---------------------------------------------------------------------------

    \28\ Telecommunications Industry Revenue at Fig. 2.
---------------------------------------------------------------------------

    14. Resellers. Neither the Commission nor SBA has developed a 
definition of small entities specifically applicable to resellers. 
The closest applicable definition under SBA rules is for all 
telephone communications companies.29 The most reliable 
source of information regarding the number of resellers nationwide 
of which we are aware appears to be the data that we collect 
annually in connection with the TRS. According to our most recent 
data, 339 companies reported that they were engaged in the resale of 
telephone services.30 Although it seems certain that some 
of these carriers are not independently owned and operated, or have 
more than 1,500 employees, we are unable at this time to estimate 
with greater precision the number of resellers that would qualify as 
small business concerns under SBA's definition. Consequently, we 
estimate that there are fewer than 339 small entity resellers that 
may be affected by the proposals recommended for adoption in the 
NPRM.
---------------------------------------------------------------------------

    \29\ 13 CFR 121.210, SIC Code 4813.
    \30\ Telecommunications Industry Revenue at Fig. 2.
---------------------------------------------------------------------------

    15. Wireless (Radiotelephone) Carriers. SBA has developed a 
definition of small entities for radiotelephone (wireless) 
companies. The Census Bureau reports that there were 1,176 such 
companies in operation for at least one year at the end of 
1992.31 According to SBA's definition, a small business 
radiotelephone company is one employing no more than 1,500 
persons.32 The Census Bureau also reported that 1,164 of 
those radiotelephone companies had fewer than 1,000 employees. Thus, 
even if all of the remaining 12 companies had more than 1,500 
employees, there would still be 1,164 radiotelephone companies that 
might qualify as small entities if they are independently owned and 
operated. Although it seems certain that some of these carriers are 
not independently owned and operated, we are unable at this time to 
estimate with greater precision the number of radiotelephone 
carriers and service providers that would qualify as small business 
concerns under SBA's definition. Consequently, we estimate that 
there are fewer than 1,164 small entity radiotelephone companies 
that may be affected by the proposals recommended for adoption in 
the NPRM.
---------------------------------------------------------------------------

    \31\ 1992 Census, supra, at Firm Size 1-123.
    \32\ 13 CFR 121.201, SIC Code 4812.
---------------------------------------------------------------------------

    16. Cellular and Mobile Service Carriers. In an effort to 
further refine our calculation of the number of radiotelephone 
companies affected by the rules adopted herein, we consider the 
categories of radiotelephone carriers, Cellular Service Carriers and 
Mobile Service Carriers. Neither the Commission nor the SBA has 
developed a definition of small entities specifically applicable to 
Cellular Service Carriers and to Mobile Service Carriers. The 
closest applicable definition under SBA rules for both services is 
for telephone companies other than radiotelephone (wireless) 
companies.33 The most reliable source of information 
regarding the number of Cellular Service Carriers and Mobile Service 
Carriers nationwide of which we are aware appears to be the data 
that we collect annually in connection with the TRS. According to 
our most recent data, 804 companies reported that they are engaged 
in the provision of cellular services and 117 companies reported 
that they are engaged in the provision of mobile 
services.34 Although it seems certain that some of these 
carriers are not independently owned and operated, or have more than 
1,500 employees, we are unable at this time to estimate with greater 
precision the number of Cellular Service Carriers and Mobile Service 
Carriers that would qualify as small business concerns under SBA's 
definition. Consequently, we estimate that there are fewer than 804 
small entity Cellular Service Carriers and fewer than 138 small 
entity Mobile Service Carriers that might be affected by the 
proposals recommended for adoption in the NPRM.
---------------------------------------------------------------------------

    \33\ Id.
    \34\ Telecommunications Industry Revenue at Fig. 2.
---------------------------------------------------------------------------

    17. Broadband PCS Licensees. The broadband PCS spectrum is 
divided into six frequency blocks designated A through F, and the 
Commission has held auctions for each block. The Commission defined 
``small entity'' for Blocks C and F as an entity that has average 
gross revenues of less than $40 million in the three previous 
calendar years. For Block F, an additional classification for ``very 
small business'' was added, and is defined as an entity that, 
together with its affiliates, has average gross revenues of not more 
than $15 million for the preceding three calendar 
years.35 These regulations defining ``small entity'' in 
the context of broadband PCS auctions have been approved by 
SBA.36 No small businesses within the SBA-approved 
definition bid successfully for licenses in Blocks A and B. There 
were 90 winning bidders that qualified as small entities in the 
Block C auctions. A total of 93 small and very small business 
bidders won approximately 40% of the 1,479 licenses for Blocks D, E, 
and F. However, licenses for Blocks C through F have not been 
awarded fully, therefore there are few, if any, small businesses 
currently providing PCS services. Based on this information, we 
conclude that the number of small broadband PCS licenses will 
include the 90 winning C Block bidders and the 93 qualifying bidders 
in the D, E, and F blocks, for a total of 183 small PCS providers as 
defined by the SBA and the Commissioner's auction rules.
---------------------------------------------------------------------------

    \35\ Id., at para. 60.
    \36\ Implementation of Section 309(j) of the Communications 
Act--Competitive Bidding, PP Docket No. 93-253, Fifth Report and 
Order, 9 FCC Rcd 5532, 5581-84 (1994).
---------------------------------------------------------------------------

    18. SMR Licensees. Pursuant to 47 CFR 90.814(b)(1), the 
Commission has defined ``small entity'' in auctions for geographic 
area 800 MHz and 900 MHz SMR licenses as a firm that had average 
annual gross revenues of less than $15 million in the three previous 
calendar years. The definition of a ``small entity'' in the context 
of 800 MHz SMR has been approved by the SBA,37 and 
approval for the 900 MHz SMR definition has been sought. The rules 
proposed in the NPRM may apply to SMR providers in the 800 MHz and 
900 MHz bands that either hold geographic area licenses or have 
obtained extended implementation authorizations. We do not know how 
many firms provide 800 MHz or 900 MHz geographic area SMR service 
pursuant to extended implementation authorizations, nor how many of 
these providers have annual revenues of less than $15 million. We 
assume, for purposes of this IRFA, that all of the extended 
implementation authorizations may be held by small entities, that 
may be affected by the proposals recommended for adoption in the 
NPRM.
---------------------------------------------------------------------------

    \37\ See Amendment of Parts 2 and 90 of the Commission's Rules 
to Provide for the Use of 200 Channels Outside the Designated Filing 
Areas in the 896-901 MHz and the 935-940 MHz Bands Allotted to the 
Specialized Mobile Radio Pool, PR Docket No. 89-583, Second Order on 
Reconsideration and Seventh Report and Order, 11 FCC Rcd 2639, 2693-
702 (1995); Amendment of Part 90 of the Commission's Rules to 
Facilitate Future Development of SMR Systems in the 800 MHz 
Frequency Band, PR Docket No. 93-144, First Report and Order, Eighth 
Report and Order, and Second Further Notice of Proposed Rulemaking, 
11 FCC Rcd 1463 (1995).
---------------------------------------------------------------------------

    19. The Commission recently held auctions for geographic area 
licenses in the 900 MHz SMR band. There were 60 winning bidders who 
qualified as small entities in the 900 MHz auction. Based on this 
information, we conclude that the number of geographic area SMR 
licensees that may be affected by the proposals in the NPRM includes 
these 60 small entities. No auctions have been held for 800 MHz 
geographic area SMR licenses. Therefore, no small entities currently 
hold these licenses. A total of 525 licenses will be awarded for the 
upper 200 channels in the 800 MHz geographic area SMR auction. The 
Commission, however, has not yet determined how many licenses will 
be awarded for the lower 230 channels in the 800 MHz geographic area 
SMR auction. There is no basis, moreover, on which to estimate how 
many small entities will win these licenses. Given that nearly all 
radiotelephone companies have fewer than 1,000 employees and that no 
reliable estimate of the number of prospective 800 MHz licensees can 
be made, we assume, for purposes of this IRFA, that all of the 
licenses may be awarded to small entities who may

[[Page 54099]]

be affected by the proposals recommended for adoption in the NPRM.
    20. 220 MHz Radio Services. Because the Commission has not yet 
defined a small business with respect to 220 MHz services, we will 
utilize the SBA definition applicable to radiotelephone companies, 
i.e., an entity employing no more than 1,500 persons.38 
With respect to 220 MHz services, the Commission has proposed a two-
tiered definition of small business for purposes of auctions: (1) 
for Economic Area (EA) licensees, a firm with average annual gross 
revenues of not more than $6 million for the preceding three years 
and (2) for regional and nationwide licensees, a firm with average 
annual gross revenues of not more than $15 million for the preceding 
three years. Given that nearly all radiotelephone companies under 
the SBA definition employ no more than 1,500 employees (as noted 
supra), we will consider the approximately 1,500 incumbent licensees 
in this service as small businesses under the SBA definition.
---------------------------------------------------------------------------

    \38\ 13 CFR 121.201, SIC Code 4812.
---------------------------------------------------------------------------

    21. Private and Common Carrier Paging. The Commission has 
proposed a two-tier definition of small businesses in the context of 
auctioning licenses in the Common Carrier Paging and exclusive 
Private Carrier Paging services.39 Under the proposal, a 
small business will be defined as either (1) an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues for the three preceding years of not more than $3 
million, or (2) an entity that, together with affiliates and 
controlling principals, has average gross revenues for the three 
preceding calendar years of not more than $15 million. Because the 
SBA has not yet approved this definition for paging services, we 
will utilize the SBA's definition applicable to radiotelephone 
companies, i.e., an entity employing no more than 1,500 
persons.40 At present, there are approximately 24,000 
Private Paging licenses and 74,000 Common Carrier Paging licenses. 
According to the most recent TRS data, 172 carriers reported that 
they were engaged in the provision of either paging or ``other 
mobile'' services, which are placed together in the 
data.41 We do not have data specifying the number of 
these carriers that are not independently owned and operated or have 
more than 1,500 employees, and thus are unable at this time to 
estimate with greater precision the number of paging carriers that 
would qualify as small business concerns under the SBA's definition. 
Consequently, we estimate that there are fewer than 172 small paging 
carriers that may be affected by the proposed rules, if adopted. We 
estimate that the majority of private and common carrier paging 
providers would qualify as small entities under the SBA definition.
---------------------------------------------------------------------------

    \39\ See 47 CFR 20.9(a)(1) (noting that private paging services 
may be treated as common carriage services).
    \40\ 13 CFR 121.201, SIC Code 4812.
    \41\ Telecommunications Industry Revenue at Fig. 2.
---------------------------------------------------------------------------

    22. Narrowband PCS. The Commission has auctioned nationwide and 
regional licenses for narrowband PCS. There are 11 nationwide and 30 
regional licensees for narrowband PCS. The Commission does not have 
sufficient information to determine whether any of these licensees 
are small businesses within the SBA-approved definition for 
radiotelephone companies. At present, there have been no auctions 
held for the major trading area (MTA) and basic trading area (BTA) 
narrowband PCS licenses. The Commission anticipates a total of 561 
MTA licenses and 2,958 BTA licenses will be awarded by auction. Such 
auctions have not yet been scheduled, however. Given that nearly all 
radiotelephone companies have no more than 1,500 employees and that 
no reliable estimate of the number of prospective MTA and BTA 
narrowband licensees can be made, we assume, for purposes of this 
IRFA, that all of the licenses will be awarded to small entities, as 
that term is defined by the SBA.
    23. Rural Radiotelephone Service. The Commission has not adopted 
a definition of small entity specific to the Rural Radiotelephone 
Service.42 A significant subset of the Rural 
Radiotelephone Service is the Basic Exchange Telephone Radio Systems 
(BETRS).43 We will use the SBA's definition applicable to 
radiotelephone companies, i.e., an entity employing no more than 
1,500 persons.44 There are approximately 1,000 licensees 
in the Rural Radiotelephone Service, and we estimate that almost all 
of them qualify as small entities under the SBA's definition.
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    \42\ The service is defined in section 22.99 of the Commission's 
rules, 47 CFR 22.99.
    \43\ BETRS is defined in sections 22.757 and 22.759 of the 
Commission's rules, 47 CFR 22.757, 22.759.
    \44\ 13 CFR 121.201, SIC Code 4812.
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    24. Air-Ground Radiotelephone Service. The Commission has not 
adopted a definition of small entity specific to the Air-Ground 
Radiotelephone Service.45 Accordingly, we will use the 
SBA's definition applicable to radiotelephone companies, i.e., an 
entity employing no more than 1,500 persons.46 There are 
approximately 100 licensees in the Air-Ground Radiotelephone 
Service, and we estimate that almost all of them qualify as small 
entities under the SBA definition.
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    \45\ The service is defined in section 22.99 of the Commission's 
rules, 47 CFR 22.99.
    \46\ 13 CFR 121.201, SIC Code 4812.
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    25. Private Land Mobile Radio (PLMR). PLMR systems serve an 
essential role in a range of industrial, business, land 
transportation, and public safety activities.47 These 
radios are used by companies of all sizes operating in all U.S. 
business categories. The Commission has not developed a definition 
of small entity specifically applicable to PLMR licensees due to the 
vast array of PLMR users. For the purpose of determining whether a 
licensee is a small business as defined by the SBA, each licensee 
would need to be evaluated within its own business area.
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    \47\ See 47 CFR 20.9(a)(2) (noting that certain Industrial/
Business Pool service may be treated as common carriage service).
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    26.The Commission is unable at this time to estimate the number 
of, if any, small businesses which could be impacted by the rules. 
However, the Commission's 1994 Annual Report on PLMRs 48 
indicates that at the end of fiscal year 1994 there were 1,087,267 
licensees operating 12,481,989 transmitters in the PLMR bands below 
512 MHz. Because any entity engaged in a commercial activity is 
eligible to hold a PLMR license, the proposed rules in this context 
could potentially impact every small business in the United States.
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    \48\ Federal Communications Commission, 60th Annual Report, 
Fiscal Year 1994, at 116.
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    27. Fixed Microwave Services. Microwave services include common 
carrier,49 private-operational fixed,50 and 
broadcast auxiliary radio services.51 At present, there 
are approximately 22,015 common carrier fixed licensees in the 
microwave services. The Commission has not yet defined a small 
business with respect to microwave services. For purposes of this 
IRFA, we will utilize the SBA's definition applicable to 
radiotelephone companies--i.e., an entity with no more than 1,500 
persons.52 We estimate, for this purpose, that all of the 
Fixed Microwave licensees (excluding broadcast auxiliary licensees) 
would qualify as small entities under the SBA definition for 
radiotelephone companies.
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    \49\ 47 CFR 101 et seq. (formerly, Part 21 of the Commission's 
Rules).
    \50\  Persons eligible under Parts 80 and 90 of the Commission's 
rules can use Private Operational-Fixed Microwave services. See 47 
CFR Parts 80 and 90. Stations in this service are called 
operational-fixed to distinguish them from common carrier and public 
fixed stations. Only the licensee may use the operational-fixed 
station, and only for communications related to the licensee's 
commercial, industrial, or safety operations.
    \51\  Auxiliary Microwave Service is governed by Part 74 of 
Title 47 of the Commission's Rules. See 47 CFR 74 et seq. Available 
to licensees of broadcast stations and to broadcast and cable 
network entities, broadcast auxiliary microwave stations are used 
for relaying broadcast television signals from the studio to the 
transmitter, or between two points such as a main studio and an 
auxiliary studio. The service also includes mobile TV pickups, which 
relay signals from a remote location back to the studio.
    \52\  13 CFR 121.201, SIC Code 4812.
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    28. Offshore Radiotelephone Service. This service operates on 
several UHF TV broadcast channels that are not used for TV 
broadcasting in the coastal area of the states bordering the Gulf of 
Mexico.53 At present, there are approximately 55 
licensees in this service. We are unable at this time to estimate 
the number of licensees that would qualify as small entities under 
the SBA's definition for radiotelephone communications.
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    \53\ This service is governed by Subpart I of Part 22 of the 
Commission's Rules. See 47 CFR 22.1001-22.1037.
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    29. Wireless Communications Services. This service can be used 
for fixed, mobile, radiolocation and digital audio broadcasting 
satellite uses. The Commission defined ``small business'' for the 
wireless communications services (WCS) auction as an entity with 
average gross revenues of $40 million for each of the three 
preceding years, and a ``very small business'' as an entity with 
average gross revenues of $15 million for each of the three 
preceding years. The Commission auctioned geographic area licenses 
in the WCS service. In the auction, there were seven winning bidders 
that qualified as very small business entities, and

[[Page 54100]]

one that qualified as a small business entity. We conclude that the 
number of geographic area WCS licensees affected includes these 
eight entities.

IV. Description of Proposed Reporting, Recordkeeping, and Other 
Compliance Requirements

    30. The proposals under consideration in the NPRM would reduce 
the reporting and recordkeeping requirements on telecommunications 
service providers regulated under the Communications Act. The 
Commission proposes to reduce regulatory burdens imposed by the 
existing multiple filing requirements by combining current 
contributor reporting worksheets into one unified Telecommunications 
Reporting Worksheet. In addition, the Commission seeks to further 
reduce carrier filing burdens by allowing carriers to use the 
proposed Telecommunications Reporting Worksheet to designate agents 
for service of process pursuant to section 413 of the Communications 
Act of 1934, as amended,54 as well as to satisfy the 
reporting requirements of section 43.21 of our rules.55 
Should the Commission adopt these proposals, we expect that 
telecommunications service providers would experience a significant 
reduction in reporting, recordkeeping, and other compliance burdens.
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    \54\ 47 USC 413.
    \55\ 47 CFR 43.21(c). The Commission's rules are codified at 
Title 47 of the Code of Federal Regulations. 47 CFR 0.1 et seq.
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V. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    31. The impact of this proceeding should be beneficial to small 
businesses because the proposals set out in the NPRM would reduce 
the reporting or recordkeeping requirements on all communications 
common carriers. As noted above in the NPRM,56 we seek 
comment on the desirability of this proposal and ask commenters to 
indicate whether a unified worksheet would reduce regulatory and 
administrative burden on reporting carriers. Alternatively, we ask 
commenters to indicate whether there might be any class of 
contributors whose burden would be increased by the unified 
worksheet.57
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    \56\  See NPRM at para. 19, supra.
    \57\  See NPRM at para. 20, supra.
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VI. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rule

    32. None.

[FR Doc. 98-27060 Filed 10-7-98; 8:45 am]
BILLING CODE 6712-01-P