[Federal Register Volume 64, Number 146 (Friday, July 30, 1999)]
[Rules and Regulations]
[Pages 41320-41333]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19686]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 52, 54, and 64

[FCC 99-175]


1998 Biennial Regulatory Review--Streamlined Contributor 
Reporting Requirements Associated with Administration of 
Telecommunications Relay Services, North American Numbering Plan, Local 
Number Portability, and Universal Service Support Mechanisms

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Commission combined four reporting requirements so that 
carriers need only file one worksheet to satisfy the contributor 
reporting requirements associated with: the universal service support 
mechanisms; telecommunications relay services; cost recovery mechanism 
for numbering administration; and cost recovery mechanism for shared 
costs of long-term local number portability. The Commission also made 
other modifications designed to rationalize requirements, including 
changing the revenue measure for assessing contributions to the TRS 
Fund and numbering administration cost recovery so that contributions 
will be based on end-user telecommunications revenues.

DATES: Effective August 30, 1999.

FOR FURTHER INFORMATION CONTACT: Scott K. Bergmann, Industry Analysis 
Division, Common Carrier Bureau, at (202) 418-7102; or Jim Lande, 
Industry Analysis Division, Common Carrier Bureau at (202) 418-0948.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order released July 14, 1999 (FCC 99-175). The full text of the 
Report and Order is available for inspection and copying during normal 
business hours in the FCC Reference Center, Room CY-A257, 445 12th 
Street, S.W., Washington, D.C. 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, D.C. 20036.

I. Summary of the Report and Order

    1. In the Report and Order summarized here, the Commission acted to 
simplify its filing requirements for communications service providers 
by replacing several different--but largely duplicative--forms with one 
consolidated form, the Telecommunications Reporting Worksheet. At 
present, telecommunications carriers and certain telecommunications 
service providers must comply with separate reporting requirements for 
their contributions to finance interstate Telecommunications Relay 
Services Fund, federal universal service support mechanisms, 
administration of the North American Numbering Plan (NANP), and the 
shared costs of long-term local number portability.1 We act 
here to harmonize these multiple contributor reporting requirements and 
to minimize the administrative burdens for carriers and service 
providers. Thus, in lieu of making four separate filings in the spring 
of 2000, reporting carriers will simply file one copy of the new 
worksheet on April 1, 2000.2 We emphasize that we are not 
imposing new reporting requirements in this proceeding; rather, our 
goal is to simplify the requirements to the greatest extent possible 
while continuing to ensure the efficient administration of the support 
and cost recovery mechanisms.
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    \1\ See 47 U.S.C. 151, 225, 251, 254. The Communications Act of 
1934, as amended, (the Communications Act or the Act) is codified at 
47 U.S.C. 151 et seq.
    \2\ The Common Carrier Bureau will release, by Public Notice, 
the worksheet and instructions to be used for the September 1999 
universal service filing. See, infra, paragraph 32.
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II. Background

    2. In a series of separate proceedings, the Commission has 
established procedures to finance interstate telecommunications relay 
services,3 universal service support mechanisms,4 
administration of the North American Numbering Plan,5 and 
shared costs of local number portability.6 To

[[Page 41321]]

accomplish each of these goals, contributions are collected from 
telecommunications carriers and certain other providers of 
telecommunications services. As currently structured, our rules require 
telecommunications carriers having interstate revenues to file, at 
different times throughout the year, a number of contributor reporting 
worksheets that reflect often duplicative reporting requirements. Such 
carriers must file four forms (Form 431, TRS Fund Worksheet; 
7 Form 457, Universal Service Worksheet; 8 Form 
496, NANPA Funding Worksheet; 9 and Form 487, LNP Worksheet 
10) containing revenue and other data on which contributions 
to support or cost recovery mechanisms are based. For each of these 
forms, with the exception of the Universal Service Worksheet, carriers 
seeking confidential treatment of the data submitted in these forms 
must also file separate requests for nondisclosure with the 
Commission.11 In addition to these contributor reporting 
requirements, all carriers must also file data concerning contact 
information for an agent for service of process located in the District 
of Columbia.12
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    \3\ See Public Law 101-336, Sec. 401, 104 Stat. 327, 366-69 
(adding section 225 to the Communications Act of 1934, as amended, 
47 U.S.C. 225). See also Telecommunications Relay Services and the 
Americans With Disabilities Act of 1990, Third Report and Order, FCC 
93-357, CC Docket No. 90-571, 8 FCC Rcd 5300, 58 FR 39671 (July 26, 
1993) (TRS Third Report and Order) (``recovering interstate relay 
costs from all common carriers who provide interstate service on the 
basis of their interstate revenues will accomplish this goal'').
    \4\ See 47 U.S.C. 254. See also Federal-State Joint Board on 
Universal Service, Report and Order, FCC 97-157, CC Docket No. 96-
45, 12 FCC Rcd 8776, 62 FR 32862 (June 17, 1997) (Universal Service 
Order).
    \5\ See 47 U.S.C. 251(e)(2). Administration of the North 
American Numbering Plan, Toll Free Service Access Codes, Third 
Report and Order and Third Report and Order, FCC 97-372, CC Docket 
No. 92-237, 95-155, 12 FCC Rcd 23040, 62 FR 55179 (October 23, 
1997).
    \6\ See 47 U.S.C. 251(e)(2). See also Telephone Number 
Portability, Third Report and Order, FCC 98-82, CC Docket 95-116, 63 
FR 35150 (June 29, 1998) (LNP Cost Recovery Order). This Report and 
Order is limited to the cost recovery mechanism for the shared costs 
of long-term local number portability.
    \7\ See 47 CFR 64.604(c)(4)(iii)(B). See also Telecommunications 
Relay Services and the Americans With Disabilities Act of 1990, 
Order, DA 98-2481, CC Docket No. 90-571 (rel. Dec. 2, 1998) (1999 
TRS Fund Worksheet Order).
    \8\ See 47 CFR 54.711. Common Carrier Bureau Announces Release 
of Revised Universal Service Worksheet (FCC Form 457) To Reflect 
Change in Reporting of Revenues From Inside Wiring Maintenance, 
Public Notice, DA 99-432, CC Docket No. 96-45 (rel. Mar. 5, 1999) 
(1999 Universal Service Worksheet Notice).
    \9\ See 47 CFR 52.16. See also Common Carrier Bureau Announces 
Release of 1999 North American Numbering Plan Funding Worksheet, FCC 
Form 496, Public Notice, 13 FCC Rcd 17888, DA 98-1865 (rel. Sept. 
15, 1998) (1999 NANP Funding Worksheet Notice).
    \10\ See 47 CFR 52.32. See also All Telecommunications Carriers 
Must Begin Contributing To the Regional Database Costs for Long-Term 
Number Portability in 1999, Public Notice, DA 99-544, CC Docket No. 
95-116 (rel. Mar. 15, 1999) (1999 LNP Worksheet Notice).
    \11\ See 47 CFR 0.459.
    \12\ See 47 U.S.C. 413; 47 CFR 1.47(h).
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    3. On September 25, 1998, the Commission released a Notice of 
Proposed Rulemaking and Notice of Inquiry, 63 FR 54090 (October 8, 
1998), to initiate this proceeding.13 Twenty-eight parties 
filed comments and ten parties filed reply comments to the Notice.
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    \13\ Contributor Reporting Requirements Notice, 13 FCC Rcd 
19295, 63 FR 54090 (October 8, 1998).
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III. Streamlining Contributor Reporting Requirements

A. Use of a Consolidated Worksheet

    4. We adopt a new Telecommunications Reporting Worksheet to replace 
the four existing worksheets used to collect contributor data. The new 
worksheet will also be used by carriers to identify agents for service 
of process, as required by section 413 of the Act. We note that 
carriers and administrators were nearly unanimous in their support of 
this proposal, indicating that it would result in tangible 
administrative savings. We also conclude that adopting one worksheet to 
satisfy these obligations will reduce confusion for carriers and should 
increase compliance, particularly by smaller carriers. Finally, we 
believe that adopting a consolidated worksheet and granting 
administrators the ability to share revenue data will reduce the costs 
for administrators and, thereby, further effect savings overall.
    5. To consolidate the worksheets, we amend the corresponding 
sections of the Commission's rules for universal service, TRS, local 
number portability, and numbering administration, so that those rule 
sections now refer to the Telecommunications Reporting 
Worksheet.14 To the same end, we also amend our rules 
concerning agents for service of process in section 1.47 to provide for 
the use of the worksheet.15 Attached, as Appendix D to the 
Report and Order, is the initial Telecommunications Reporting Worksheet 
(including both the April and the streamlined September versions) that 
will be used for the September 1, 1999 filing.16 The new 
Telecommunications Reporting Worksheet will provide the necessary 
information while reducing to the lowest possible level the burden for 
carriers and service providers.
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    \14\ See Attachment to this Summary (Rules Changes).
    \15\ See Attachment to this Summary (Rules Changes).
    \16\ See Section III. B. of this Summary (concerning Timing 
Issues).
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    6. We do not adopt, however, the Commission's proposal to use the 
Telecommunications Reporting Worksheet to collect revenue and plant 
data required under section 43.21(c) of the Commission's 
rules.17
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    \17\ See Contributor Reporting Requirements Notice, 13 FCC Rcd 
19295, 19309, 63 FR 54090 (October 8, 1998); 47 CFR 43.21(c).
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B. Timing Issues

1. Uniform Filing Date
    7. Consolidating the multiple existing filings into the 
Telecommunications Reporting Worksheet will reduce the number of times 
that carriers will need to assemble data and report it. We direct the 
Bureau to utilize a single filing date for the Telecommunications 
Reporting Worksheet for the purposes of universal service, TRS, NANP, 
and local number portability.18 Our decision to adopt a 
single filing date is bolstered by all of the commenters to address 
this proposal. Since we adopt the first iteration of the 
Telecommunications Reporting Worksheet in this order, we direct that, 
for the first year's filing, the Telecommunications Reporting Worksheet 
should be filed on April 1st.
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    \18\ Agent for service of process data required pursuant to 
section 413 of the Act is not necessarily filed at one time of the 
year, but at the time the carrier changes its agent for service of 
process in the District of Columbia. This requirement will remain 
unchanged. See 47 CFR 1.47(h).
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    8. We clarify that the new Telecommunications Reporting Worksheet 
will become effective upon approval by the Office of Management and 
Budget (OMB), but not less than thirty days from publication in the 
Federal Register. It is our intention that contributors to the 
universal service support mechanisms should use the streamlined Form 
499-S version (FCC Form 499S) to satisfy the September 1, 1999 
universal service filing. However, because we are required to seek 
approval from the Office of Management and Budget for this revised 
information collection, it is possible that the new form may not be 
available for use for the September 1999 filing. We direct the Bureau 
to announce by Public Notice whether contributors should file the new 
September version or whether contributors should file, for a final 
time, the existing Universal Service Worksheet. For the purposes of 
TRS, NANP, LNP, universal service, the Form 499-A version of the 
worksheet will be used to satisfy the April 1, 2000 filing. In 
addition, the worksheet will be available to be used by carriers to 
satisfy their section 413 obligations concerning agents for service of 
process,19 as soon as it is approved by OMB, but not less 
than thirty days after publication in the Federal Register. This 
timeframe should give administrators sufficient time to prepare their 
systems for the new worksheet and should give filers sufficient time to 
become familiar with the new worksheet.
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    \19\ See Section III. B. of the Order.
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2. September 1st Filing Date for Universal Service Support Mechanisms
    9. We conclude that a more streamlined form is acceptable for the 
September 1st filing. Accordingly, we adopt a ``short form'' for 
purposes of the

[[Page 41322]]

September 1st filing that will omit data that is not essential for the 
mid-year calculation of universal service contributions.

E. Filing Location(s)

    10. We conclude that subject carriers and service providers need 
only file one copy of their completed Telecommunications Reporting 
Worksheet, rather than separate copies with each administrator. We 
facilitate a single filing location by instructing the administrators 
to develop procedures for collecting, validating, and distributing the 
contributor data provided in the new Telecommunications Reporting 
Worksheet.20
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    \20\ See Section III. G. (discussing data entry of the 
Telecommunications Reporting Worksheet) of the Order. The Bureau 
will announce by Public Notice the location for filing the April 
2000 Telecommunications Reporting Worksheet.
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F. Procedures for Future Changes to the Telecommunications Reporting 
Worksheet

    11. We adopt our proposal and delegate authority to make future 
changes to the Telecommunications Reporting Worksheet to the Chief of 
the Common Carrier Bureau.21 The Bureau already has broad 
authority to waive, reduce, or eliminate the contributor reporting 
requirements for universal service, and the Bureau has latitude with 
respect to the administration of the NANP, LNP, and TRS contributor 
reporting requirements. These delegations extend to administrative 
aspects of the requirements, e.g., where and when worksheets are filed, 
incorporating edits to reflect Commission changes to the substance of 
the mechanisms, and other similar details.
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    \21\ See Contributor Reporting Requirements Notice, 13 FCC Rcd 
19295, 19319-20, 63 FR 54090 (October 8, 1998).
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    12. So that these delegations are consistent, we amend the 
Commission's rules to grant the Common Carrier Bureau delegated 
authority, in keeping with the current delegation for universal service 
purposes, to waive, reduce, modify, or eliminate the contributor 
reporting requirements for the TRS, LNP, and NANP mechanisms, as 
necessary to preserve the sound and efficient administration of these 
support and cost recovery mechanisms.22 We specify that the 
Bureau has the authority to ``modify'' these reporting requirements as 
a matter of clarification, because we believe that this authority is 
implied within the existing grant. We reaffirm that this delegation 
extends only to making changes to the administrative aspects of the 
reporting requirements, not to the substance of the underlying 
programs.
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    \22\ See Appendix B, Rules Amended.
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G. Information Sharing and Delegation of Data Entry Functions Between 
Administrators

    13. We amend our rules to allow the administrators to share 
confidential contributor information with one another for the purposes 
of comparing individual contributors' revenue, contact, and payment 
history information. Based on our experience with the limited sharing 
provisions currently allowed under our rules and on the record in this 
proceeding, we conclude that the ability to share contributor data will 
assist the administrators in monitoring compliance with the 
contribution requirements by revealing inconsistencies between revenue 
data reported to the different administrators. This sharing of 
information will also enhance the administrators' performance of their 
collection functions and thereby better ensure the integrity and 
efficient administration of the support and cost recovery mechanisms. 
Moreover, we amend our rules to ensure that such information cannot be 
used for purposes unrelated to the administration of the mechanisms; 
thus, ensuring proper treatment of confidential contributor 
information.23
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    \23\ See Section III.H. (concerning Confidentiality Issues) of 
the Order.
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    14. Starting with the April 2000 filing of the consolidated 
worksheet, the administrators will have a practical need to share 
carrier-provided information because we direct in this order that 
filers need only submit one copy of their completed 
worksheets.24 Rather than mandate particular data sharing 
procedures, we order the administrators to develop efficient and 
effective procedures for collecting, validating, and distributing the 
centrally-filed contributor data amongst themselves. We expect, for 
example, that it might be more cost effective to have one administrator 
perform the data entry and preliminary verification functions for more 
than one of the support and cost recovery mechanisms. Whatever their 
decision, we direct the administrators to file with the Bureau, within 
90 days after release of this order, a summary of their proposed 
procedures for distributing the data from the worksheet.
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    \24\ See Section III.E. (discussing the filing location for the 
consolidated worksheet) of the Order. The Bureau will announce by 
Public Notice the location for filing the April 2000 
Telecommunications Reporting Worksheet.
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    15. We conclude that the costs of collecting, validating, and 
distributing the carrier-provided information--and, any savings derived 
from consolidating redundant administrative tasks--should be allocated 
equitably among the administrators. Accordingly, we order the 
administrators to include in their filed summary a description of how 
related costs will be equitably apportioned. We delegate to the Bureau 
the authority to review the administrators' summary, including the 
proposed cost allocation plan.
    16. To preserve the integrity of the support and cost recovery 
mechanisms, it is important to ensure that all contributor data is 
collected. We thus expect that the summarized procedures should reflect 
the administrators' commitment to ensuring that all required data is 
collected and validated.

H. Additional Confidentiality Issues

    17. We adopt our proposal 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.25 As proposed, 
we amend our rules so that filers will be able to make this 
certification on their Telecommunications Reporting Worksheet and 
request Commission nondisclosure of information contained in the 
worksheet simply by checking a box on the worksheet, in lieu of 
submitting a separate request pursuant to section 0.459 of the 
Commission's rules.
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    \25\ See Appendix D, Telecommunications Reporting Worksheet. We 
note that Blooston requests that the Commission grant confidential 
treatment for other information on the worksheet, such as the 
facsimile numbers and e-mail addresses of the contact persons. Any 
such request for confidential treatment would have to be separately 
pleaded pursuant to section 0.459. 47 CFR 0.459. We note, however, 
that the Commission does not plan to routinely release this 
information.
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    18. We make clear, however, that simply requesting confidential 
treatment by means of this check-box does not necessarily entitle the 
filer to nondisclosure. Indeed, if the Commission is to receive a 
request for disclosure of the information on the worksheets, or if the 
Commission proposes to disclose the information, the filer would be 
required to make the full showing required under our 
rules.26

[[Page 41323]]

For example, we expect that the Commission would be disinclined to 
withhold information related to the size of an individual carrier's 
contribution (information which third parties could potentially use to 
estimate that carrier's revenues) in an enforcement action against a 
carrier for failure to make a required contribution to one of the 
support or cost recovery mechanisms.
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    \26\ See 47 CFR 0.459. See also Examination of Current Policy 
Concerning the Treatment of Confidential Information Submitted to 
the Commission, FCC 98-184, GC Docket No. 96-55, 63 FR 44161 (August 
18, 1998) (listing the showings required in a request that 
information be withheld and stating that the Commission may defer 
action on such requests until a formal request for public inspection 
has been made).
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    19. In light of our decision to allow administrators to share 
contributor revenue data, we take additional measures to ensure the 
nondisclosure of confidential submissions. We accordingly modify our 
rules to extend each administrator's confidentiality obligations to the 
data obtained from other funds. Moreover, we amend our rules to ensure 
that the administrators shall only use contributor data--whether 
obtained directly from contributors or from administrators--for the 
purpose administering the support and cost recovery 
mechanisms.27
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    \27\ We note that the TRS rules enable the TRS administrator to 
use data obtained from contributors to be used for calculating the 
regulatory fees of interstate common carriers, and aggregating such 
fee payments for submission to the Commission. We do not alter these 
provisions.
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I. Electronic Filing

    20. We conclude, based on our experience in other proceedings, that 
making available an electronic filing system for the Telecommunications 
Reporting Worksheet may allow filers and administrators to reduce costs 
and improve accuracy. Accordingly, we take initial steps in this 
proceeding to develop and move to an electronic filing system. We 
expect, however, that the costs and benefits of an electronic filing 
system can vary significantly depending on the design of the system. 
Indeed, in light of the complexities raised in the record by both 
carriers and administrators, we conclude that it is imperative for the 
development of and the transition to an eventual electronic filing 
system to be conducted with great involvement from the administrators 
and carriers.28
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    \28\ See, e.g., MCI Comments at 5; GTE Comments at 4; Blooston 
Reply Comments at 7-9.
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    21. As an initial step, we direct the administrators to assess and 
report to the Bureau, within 180 days of the release of this order, on 
the feasibility of implementing electronic filing. We expect the 
administrators to address the potential start-up and on-going operating 
costs to the administrators and carriers of an electronic system. The 
administrators should also address measures and costs associated with 
ensuring the accuracy and security of filed contributor data. We agree 
with those commenters that state that any proposal for electronic 
filing should not require expensive start-up costs for 
filers.29 Moreover, we conclude that any electronic filing 
proposal must satisfy a cost-benefit analysis and instruct the 
administrators to conduct such an analysis. Finally, we restate our 
commitment to making electronic filing and other electronic 
applications accessible to persons with disabilities to the fullest 
extent possible.30 Therefore, the administrators' report 
should address their ability--both now and on a continuing basis--to 
make electronic systems accessible to persons with disabilities.
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    \29\ See, e.g., Blooston Comments at 15-16; MCI Comments at 5.
    \30\ Electronic filing is subject to the program accessibility 
requirements of section 1.850 of our rules. 47 CFR 1.850. See also 
Workforce Investment Act of 1998, Public Law 105-220, 112 Stat. 936 
(Aug. 7, 1998).
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IV. Contributions to TRS and NANPA Mechanisms

A. Overview

    22. We adopt our proposals to alter the revenue bases for the TRS 
and NANP mechanisms so that end-user telecommunications revenues will 
be used to calculate contributions for all four mechanisms. In 
addition, we also alter the current practices for assessing minimum 
contributions to the TRS and NANP mechanisms to lessen regulatory 
burdens on small carriers and telecommunications service providers.
    23. As a preliminary matter, we reject MCI's procedural argument 
that the Commission may not alter the revenue base or minimum 
contributions rules because it did not give adequate notice of these 
changes. Section 553(b) of the Administrative Procedures Act (APA) 
requires that an agency afford interested parties adequate notice of, 
and an opportunity to comment on, the provisions that appear in the 
agency's final regulations. 31 Courts have interpreted this 
to require that an agency provide ``sufficient factual detail and 
rationale for the rule to permit interested parties to comment 
meaningfully.'' 32 The Contributor Reporting Requirements 
Notice, 63 FR 54090 (October 8, 1998), appeared in the Federal 
Register, and it contained adequate, indeed explicit, notice of the 
provisions we adopt today. We also observe that the caption to this 
docket specifically references the four underlying mechanisms; a point 
which we believe is not essential to satisfy the requirements of the 
APA, but that further undercuts MCI's claim that it did not have 
adequate notice of these proposals. Moreover, MCI cannot claim any 
actual lack of notice, as it has participated fully in this proceeding, 
filing both initial and reply comments. Accordingly, we believe that no 
further notice is required to comply with the notice provisions of the 
APA.
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    \31\  5 U.S.C. 553.
    \32\  Florida Power & Light Co. v. United States, 846 F.2d 765, 
771 (D.C. Cir. 1988), cert. denied, 490 U.S. 1045 (1989).
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B. Basis for Assessing Contributions

    24. In light of the Commission's experience since adopting revenue 
bases for TRS and NANP and in light of our efforts to streamline 
contributor reporting requirements, we modify our rules for 
contributions to the TRS and NANP mechanisms so that contributions will 
be based on end-user telecommunications revenues. Basing contributions 
to these mechanisms on end-user telecommunications revenue will 
effectively carry out the statutory mandates in section 225 and 251 for 
financing of TRS and NANP. 33 In addition to fulfilling the 
statutory directives, moving to an end-user telecommunications revenue 
basis will reduce carriers' administrative expenses associated with 
these reporting requirements. Indeed, given our proposal to create a 
unified contributor collection worksheet, we believe that changing the 
funding basis to end-user telecommunications revenue will appreciably 
reduce administrative burdens overall for carriers.
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    \33\  See 47 U.S.C. 225, 251(e).
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    25. Basing contributions on end-user telecommunications revenues 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.'' 34 Recovering interstate relay costs from all 
common carriers that provide interstate service on the basis of their 
interstate revenues will accomplish this goal. End users are a 
reasonable proxy for subscribers, so collecting contributions from 
carriers based on revenue derived from end users satisfies section 225.
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    \34\ 47 U.S.C. 225(d)(3)(B).
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    26. Similarly, collecting contributions to the NANP cost recovery 
on the basis of end-user telecommunications satisfies the requirements 
of section 251(e). Section 251(e) of the Act directs that ``[t]he cost 
of establishing

[[Page 41324]]

telecommunications numbering administration arrangements and number 
portability shall be borne by all telecommunications carriers on a 
competitively neutral basis as determined by the Commission.'' 
35 The end-user telecommunications revenue basis satisfies 
the section 251 directive that contributions be assessed on a 
competitively neutral basis. In particular, the Commission found this 
basis to be competitively neutral because it does not give one service 
provider an appreciable, incremental cost advantage when competing for 
a subscriber. Further, basing contributions on end-user 
telecommunications revenues will prevent contributions to the NANP 
administration cost recovery from disparately affecting the ability of 
carriers to earn a normal return. We affirm this analysis and conclude 
that collecting contributions to the NANP administration cost recovery 
based on end-user telecommunications revenues will be competitively 
neutral.36
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    \35\ 47 U.S.C. 251(e)(2). Even though there is no explicit 
statutory requirement to do so in section 225, we conclude that the 
principle of competitive neutrality is consistent with section 225 
and that basing contributions to the TRS Fund on a competitively 
neutral mechanism would advance the intent embodied in the 
Congressional goal of ``a pro-competitive, de-regulatory national 
policy framework.'' See Joint Explanatory Statement of the Committee 
of Conference, S. Conf. Rep. No. 230, 104th Cong., 2d Sess. 113 
(1996).
    \36\ See, e.g., BellSouth Comments at 4-5; IDT Comments at 16; 
Star Comments at 2-4. We note that several Bell Operating Companies 
argued to the United States Court of Appeals for the 8th Circuit 
that the net telecommunications revenue methodology would not be 
competitively neutral if states do not permit carriers to flow 
through their numbering administration costs in the prices that they 
charge their competitors for telecommunications services and 
facilities. California v. FCC, 124 F.3d 934 (8th Cir., 1997). The 
Court of Appeals ruled that petitioners' contentions were 
speculative and not ripe for review because no state had concluded 
that carriers could not include numbering administration charges in 
the prices for services or facilities sold to other 
telecommunications service providers. Id. at 944. Adoption of an 
end-user telecommunications revenue basis should moot this issue.
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    27. In the case of NANP, we note that section 251(e)(2) requires 
that the ``cost of establishing telecommunications numbering 
administration arrangements . . . shall be borne by all 
telecommunications carriers on a competitively neutral basis. . . .'' 
37 Given the statutory directive that contributions be 
collected from ``all telecommunications carriers,'' we require carriers 
that provided telecommunications service during the base year and that 
have no end-user telecommunications revenue to make a fixed 
contribution of twenty-five dollars ($25) to the NANP cost recovery 
mechanism.38 We conclude that assessing this sum will 
satisfy the statutory language of section 251(e)(2) and at the same 
time will not be economically burdensome for these primarily-large 
wholesale carriers. Finally, we observe that although an end-user 
telecommunications revenue basis would otherwise relieve pure 
wholesalers, which have no end-user revenue, from directly bearing 
costs of number administration, the end-user method does not exclude 
wholesale revenues from the revenue base that determines carriers' 
contributions. As the Commission explained in the Universal Service 
Order, 62 FR 32862 (June 17, 1997), wholesale charges are built into 
retail rates, and thus the revenue basis still reflects wholesale 
revenue.39
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    \37\ 47 U.S.C. 251(e)(2).
    \38\ While the Commission proposed in the Notice a fixed 
contribution of $100 for carriers with no end-user 
telecommunications revenues, we believe that the $25 contribution 
will be easier to administer, since it is consistent with the $25 
minimum contribution rule that we adopt for contributors with end-
user telecommunications revenues. See Section IV. C. of the Order.
    \39\ See Universal Service Order, 12 FCC Rcd 8776, 9207, 62 FR 
32862 (June 17, 1997).
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    28. To minimize confusion for contributors and the administrators, 
we wish to make the transition to contributions based on end-user 
telecommunications revenues as soon as possible. For purposes of TRS, 
we recognize that many contributors are still making monthly 
installment payments toward their funding year 1999 contribution (which 
covers the April 26, 1999 through March 26, 2000 period) and we make 
clear that those contributions to the TRS Fund for the current funding 
period will continue to be based on gross telecommunications revenues. 
Because the contributor data needed to calculate TRS contributions for 
the funding year 2000 will not be available until April 2000, we will 
extend the current TRS funding period, so that contributions to the TRS 
Fund will continue to be based on gross telecommunications revenues and 
the current fund factor through the end of June 2000.40 As 
of July 1, 2000 contributions to the TRS Fund will be based on end-user 
telecommunications revenues. A new factor will be developed in time for 
contributions in July 2000 and we will shift the fiscal year for TRS, 
so that the funding period will run from July 1st of each year through 
June 30th of the following year.
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    \40\ See Telecommunications Relay Services and the Americans 
with Disabilities Act of 1990, Order, DA 98-2481, CC Docket No. 90-
571 (rel. Dec. 2, 1998) (determining contribution factor for the 
April 26, 1999 through March 26, 2000 period).
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    29. Indeed, we will shift the fiscal years for both TRS and NANP, 
so that the funding periods for these mechanisms will be more closely 
timed with the receipt of annual contributor data in the April filing 
of the new consolidated worksheet. We also make clear that 
contributions to the NANP cost recovery will continue to be based on 
net telecommunications revenues through the end of the current funding 
year, which covers fund administration from March 1999 through February 
2000. The NANP Billing and Collection Agent will begin collecting 
contributions based on end-user telecommunications revenues for the 
funding year 2000. So that we may transition the NANP funding period to 
run from July 1st of each year through June 30th of the following year, 
we direct that the funding year 2000 will cover the sixteen month 
period from March 2000 through June 2001. We direct that, for purposes 
of the NANP funding year 2000, the Billing and Collection Agent will 
use contributor data filed in the September consolidated worksheet to 
develop the fund factor and should use the contributor data filed in 
the April consolidated worksheet to perform a ``true-up'' for the 
contributions in July 2000.41 Thereafter, the NANP funding 
period will return to the twelve month cycle from July to June with 
contributions based on the April filing of the worksheet.
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    \41\ A ``true-up'' will be necessary because the September 
worksheet reports only half year revenue data and because it may not 
collect data from all NANP contributors, e.g., some 
telecommunications carriers that are de minimis for universal 
service purposes will not file the September worksheet. We 
nevertheless expect that the revisions performed in the ``true-up'' 
will be minor in terms of contributors added and contributions 
adjusted.
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C. Minimum and Fixed Annual Contributions to TRS and NANPA Mechanisms

    30. We modify our proposals and amend our rules to reduce 
substantially the one hundred dollar minimum contributions to a twenty-
five dollar minimum. Our experience with the TRS and NANP mechanisms 
persuades us that it is possible to lower the one hundred dollar 
minimum while protecting the administrative integrity and efficiency of 
the TRS and NANP mechanisms.

V. Procedural Matters

A. Final Paperwork Reduction Act Analysis

    31. As required by the Paperwork Reduction Act of 1995, the 
Contributor Reporting Requirements Notice, 63 FR 54090 (October 8, 
1998), invited the

[[Page 41325]]

general public and the Office of Management and Budget (OMB) to comment 
on the proposed information collection requirements contained in the 
Notice, in particular, the Telecommunications Reporting Worksheet. On 
December 9, 1998, OMB approved the proposed information collection, as 
submitted to OMB.42 In this Report and Order, we adopt the 
proposed Telecommunications Reporting Worksheet, but modify our 
proposal to reflect comments received from OMB and other commenters. 
The revised Telecommunications Reporting Worksheet is subject to 
approval by OMB. The worksheet that we adopt in this Order reflects our 
efforts to collect the information necessary to implement the 
congressional directives, while reducing to the lowest possible level 
the burden on carriers and service providers.43
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    \42\ In its approval of the proposed worksheet, OMB requests 
that the Commission address several issues. See Section V.A. of the 
Order for a discussion of those issues.
    \43\ See Sections III.B. of the Order (discussing data requested 
in the worksheet); and V.A. of the Order (discussing comments on the 
proposed information collections).
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B. Final Regulatory Flexibility Act Analysis

    32. As required by the Regulatory Flexibility Act 
(RFA),44 the Commission has prepared a Final Regulatory 
Flexibility Analysis (FRFA) of the possible significant economic impact 
on small entities of the policies and rules adopted in this Order. A 
copy of this FRFA is set forth as part of this summary. The Office of 
Public Affairs, Reference Operations Division, will send a copy of this 
Order, including the FRFA, to the Chief Counsel for Advocacy of the 
Small Business Administration.
---------------------------------------------------------------------------

    \44\ See 5 U.S.C. 604. 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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VI. Ordering Clauses

    33. Accordingly, it is ordered, pursuant to 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 that 
this Order is hereby Adopted.
    34. It is further ordered that the rule changes set forth in 
Appendix B are hereby adopted, effective thirty (30) days from the date 
of publication in the Federal Register. The information collection 
adopted herein is contingent upon approval by the Office of Management 
and Budget, but, in any event, will not become effective before thirty 
(30) days after publication in the Federal Register.
    35. It is further ordered that the Commission's Office of Public 
Affairs, Reference Operations Division, shall send a copy of this 
order, including the Final Regulatory Flexibility Analysis, to the 
Chief Counsel for Advocacy of the Small Business Administration.

Final Regulatory Flexibility Act Analysis

    36. In compliance with the Regulatory Flexibility Act 
(RFA),45 an Initial Regulatory Flexibility Analysis (IRFA) 
was incorporated into the Contributor Reporting Requirements Notice, 63 
FR 54090 (October 8, 1998). The Commission sought written public 
comment on the proposals in the Notice, including comment on the IRFA. 
The comments received are discussed below. This present Final 
Regulatory Flexibility Analysis (FRFA) conforms to the 
RFA.46
---------------------------------------------------------------------------

    \45\ 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).
    \46\ See 5 U.S.C. 604.
---------------------------------------------------------------------------

I. Need for, and Objectives of, the Contributor Reporting Requirements 
Order:

    37. The Commission undertakes this examination of its contributor 
reporting requirements 47 as a part of its 1998 biennial 
review of regulations as required by section 11 of the Communications 
Act, as amended.48 This Order simplifies the Commission's 
filing requirements by consolidating several different forms currently 
filed under our existing rules associated with the Telecommunications 
Relay Services (TRS) Fund,49 federal universal service 
support mechanisms,50 the cost recovery mechanism for the 
North American Numbering Plan (NANP) administration,51 and 
the cost recovery mechanism for long-term local number portability 
(LNP) administration.52 This Order also establishes end-user 
telecommunications revenues as the basis for contributions to the NANP 
and TRS mechanisms--making consistent the revenue bases for all four 
support and cost recovery mechanisms. Our objective is to reduce or 
eliminate unnecessary or duplicative regulatory requirements, 
consistent with section 11 of the Act,53 and the 
Telecommunications Act of 1996.54
---------------------------------------------------------------------------

    \47\ 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.
    \48\ 47 U.S.C. 161.
    \49\ 47 CFR 64.601 et seq.
    \50\ 47 CFR 54.1 et seq., 69.1 et seq.
    \51\ 47 CFR 52.1 et seq.
    \52\ 47 CFR 52.21 et seq.
    \53\ 47 U.S.C. 161.
    \54\ Telecommunications Act of 1996, Public Law 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).
---------------------------------------------------------------------------

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

    38. Only one party filed comments addressing the Commission's 
compliance with the RFA,55 but many parties commented on the 
Commission's proposals to streamline the Commission's reporting 
requirements. As noted above, the record provided by all of these 
commenting parties clearly supports the Commission's efforts to reduce 
the amount of paperwork required by the current contributor reporting 
requirements.56 Consistent with those comments, this Order 
reduces significantly the amount of paperwork required of 
telecommunications carriers.
---------------------------------------------------------------------------

    \55\ See GST Comments at 15.
    \56\ See Section III.B. (discussing use of a consolidated 
worksheet) of the Order.
---------------------------------------------------------------------------

    39. In comments to the Notice, GST argues that the proposed 
Telecommunications Reporting Worksheet is particularly burdensome for 
small carriers because it assumes that small carriers have developed 
sophisticated accounting infrastructure.57 We disagree with 
GST's assessment and note that the worksheet provides flexibility for 
carriers that do not have sophisticated accounting systems. In contrast 
to GST's portrayal, the categories of revenue sought in the worksheet 
correspond to major categories of service, reflecting our expectation 
that most carriers track the relative magnitudes of their major product 
offerings for internal management reporting and cost accounting 
purposes. GST offers no evidence to the contrary. The worksheet 
collects the minimum amount of information necessary to ensure that 
individual carriers and segments of the industry are contributing on a 
fair and equitable basis. Further, the worksheet and its instructions 
incorporate alternative, less burdensome approaches where it has been 
determined that supplying certain information is particularly 
burdensome for certain carriers. Thus, for example, the worksheet 
permits carriers to use good

[[Page 41326]]

faith estimates to determine interstate and international revenues 
where these figures cannot be directly determined from corporate books 
of account or subsidiary records. Similarly, we adopt a streamlined 
version of the worksheet to satisfy the September universal service 
filing and to reduce costs for carriers.
---------------------------------------------------------------------------

    \57\ See GST Comments at 7, 9, 15.
---------------------------------------------------------------------------

    40. While not in direct response to the IRFA, both NECA and 
Blooston encourage the Commission not to implement an electronic filing 
system that would require costly investments by small 
carriers.58 We agree that proposals for electronic filing of 
the Telecommunications Reporting Worksheet should not require expensive 
start-up costs for filers, so that all carriers, including small 
entities, should be able to utilize a more efficient 
system.59
---------------------------------------------------------------------------

    \58\ NECA Comments at 4; Blooston Reply Comments at 9.
    \59\ See Section III.I. (discussing electronic filing) of the 
Order.
---------------------------------------------------------------------------

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

    41. The Commission's contributor reporting requirements apply to a 
wide range of entities, including all telecommunications carriers and 
other providers of interstate telecommunications that offer 
telecommunications for a fee.60 Thus, we expect that the 
rules adopted in this Order will have a positive economic impact on a 
substantial number of small entities. Based on the number of carriers 
that file the existing forms--and this Order does not increase the 
number of entities that must comply with these requirements--we predict 
that not more than 5,000 entities, total, will file the worksheet. Of 
those 5,000 potential filers, we do not know how many are small 
entities, but we offer below a detailed estimate of the number of small 
entities within each of several major carrier-type categories. We 
state, again, that the economic impact of these proposals is, of 
course, a positive and beneficial impact, in the form of reduced 
regulatory burdens and recordkeeping requirements, for these entities.
---------------------------------------------------------------------------

    \60\ 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.
---------------------------------------------------------------------------

    42. 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.'' 61 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.62 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).63 The SBA has defined a 
small business for Standard Industrial Classification (SIC) categories 
4812 (Radiotelephone Communications) and 4813 (Telephone 
Communications, Except Radiotelephone) to be small entities when they 
have no more than 1,500 employees.64 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.
---------------------------------------------------------------------------

    \61\ 5 U.S.C. 601(6).
    \62\ 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.''
    \63\ 15 U.S.C. 632. See, e.g., Brown Transport Truckload, Inc. 
v. Southern Wipers, Inc., 176 B.R. 82 (N.D. Ga. 1994).
    \64\ 13 CFR 121.201.
---------------------------------------------------------------------------

    43. 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 Carrier Locator report, 
derived from filings made in connection with the Telecommunications 
Relay Service (TRS).65 According to data in the most recent 
report, there are 3,604 interstate carriers.66 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.
---------------------------------------------------------------------------

    \65\ FCC, Carrier Locator: Interstate Service Providers, Figure 
1 (Jan. 1999) (Carrier Locator). See also 47 CFR 64.601 et seq.
    \66\ Carrier Locator at Fig. 1.
---------------------------------------------------------------------------

    44. 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.'' 67
---------------------------------------------------------------------------

    \67\ See 13 CFR 121.201, Standard Industrial Classification 
(SIC) 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.
---------------------------------------------------------------------------

    45. 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.68 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.'' 69 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

[[Page 41327]]

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 decisions and rule changes 
adopted in this Order.
---------------------------------------------------------------------------

    \68\ 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'').
    \69\ 15 U.S.C. 632(a)(1).
---------------------------------------------------------------------------

    46. 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 1992.70 According to SBA's definition, a 
small business telephone company other than a radiotelephone company is 
one employing no more than 1,500 persons.71 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 
decisions and rule changes adopted in this Order.
---------------------------------------------------------------------------

    \70\ 1992 Census, supra, at Firm Size 1-123.
    \71\ 13 CFR 121.201, SIC Code 4813.
---------------------------------------------------------------------------

    47. Local Exchange Carriers, Interexchange Carriers, Competitive 
Access Providers, Operator Service Providers, and Resellers. Neither 
the Commission nor SBA has developed a definition of small local 
exchange carriers (LECs), interexchange carriers (IXCs), competitive 
access providers (CAPs), operator service providers (OSPs), or 
resellers. The closest applicable definition for these carrier-types 
under SBA rules is for telephone communications companies other than 
radiotelephone (wireless) companies.72 The most reliable 
source of information regarding the number of these carriers nationwide 
of which we are aware appears to be the data that we collect annually 
in connection with the Telecommunications Relay Service 
(TRS).73 According to our most recent data, there are 1,410 
LECs, 151 IXCs, 129 CAPs, 32 OSPs, and 351 resellers.74 
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 these carriers that would qualify as small business concerns under 
SBA's definition. Consequently, we estimate that there are fewer than 
1,410 small entity LECs or small incumbent LECs, 151 IXCs, 129 CAPs, 32 
OSPs, and 351 resellers that may be affected by the decisions and rule 
changes adopted in this Order.
---------------------------------------------------------------------------

    \72\ 13 CFR 121.210, SIC Code 4813.
    \73\ See 47 CFR 64.601 et seq.; Carrier Locator at Fig. 1.
    \74\ Carrier Locator at Fig. 1. The total for resellers includes 
both toll resellers and local resellers.
---------------------------------------------------------------------------

    48. 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 1992.75 
According to SBA's definition, a small business radiotelephone company 
is one employing no more than 1,500 persons.76 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 decisions and rule changes 
adopted in this Order.
---------------------------------------------------------------------------

    \75\ 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'').
    \76\ 13 CFR 121.201, SIC Code 4812.
---------------------------------------------------------------------------

    49. Cellular, PCS, SMR and Other Mobile Service Providers. In an 
effort to further refine our calculation of the number of 
radiotelephone companies that may be affected by the rules adopted 
herein, we consider the data that we collect annually in connection 
with the TRS for the subcategories Wireless Telephony (which includes 
Cellular, PCS, and SMR) and Other Mobile Service Providers. Neither the 
Commission nor the SBA has developed a definition of small entities 
specifically applicable to these broad subcategories, so we will 
utilize the closest applicable definition under SBA rules--which, for 
both categories, is for telephone companies other than radiotelephone 
(wireless) companies.77 To the extent that the Commission 
has adopted definitions for small entities providing PCS and SMR 
services, we discuss those definitions below. According to our most 
recent TRS data, 732 companies reported that they are engaged in the 
provision of Wireless Telephony services and 23 companies reported that 
they are engaged in the provision of Other Mobile 
Services.78 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 Wireless Telephony Providers and Other Mobile 
Service Providers, except as described below, that would qualify as 
small business concerns under SBA's definition. Consequently, we 
estimate that there are fewer than 732 small entity Wireless Telephony 
Providers and fewer than 23 small entity Other Mobile Service Providers 
that might be affected by the decisions and rule changes adopted in 
this Order.
---------------------------------------------------------------------------

    \77\ Id.
    \78\ Carrier Locator at Fig. 1.
---------------------------------------------------------------------------

    50. 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.79 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.80 
These regulations defining ``small entity'' in the context of broadband 
PCS auctions have been approved by SBA.81 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

[[Page 41328]]

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 estimate 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.
---------------------------------------------------------------------------

    \79\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, FCC 96-278, WT Docket 
No. 96-59, Paras. 57-60 (June 24, 1996), 61 FR 33859 (July 1, 1996); 
see also 47 CFR 24.720(b).
    \80\ Id., at para. 60.
    \81\ 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, 59 FR 63210 (December 7, 1994).
---------------------------------------------------------------------------

    51. 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,\82\ and approval for the 900 MHz SMR 
definition has been sought. The rules proposed in this FRFA 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 FRFA, that all 
of the extended implementation authorizations may be held by small 
entities, that may be affected by the decisions and rule changes 
adopted in this Order.
---------------------------------------------------------------------------

    \82\ 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, 60 FR 48913 (September 21, 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, 61 FR 06212 (February 16, 
1996).
---------------------------------------------------------------------------

    52. 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 decisions and rule changes 
adopted in this Order 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 FRFA, that all 
of the licenses may be awarded to small entities who may be affected by 
the decisions and rule changes adopted in this Order.
    53. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service 
has both Phase I and Phase II licenses. There are approximately 1,515 
such non-nationwide licensees and four nationwide licensees currently 
authorized to operate in the 220 MHz band. The Commission has not 
developed a definition of small entities specifically applicable to 
such incumbent 220 MHZ Phase I licensees. To estimate the number of 
such licensees that are small businesses, we apply the definition under 
the SBA rules applicable to Radiotelephone Communications 
companies.\83\ According to the Bureau of the Census, only 12 
radiotelephone firms out of a total of 1,178 such firms which operated 
during 1992 had 1,000 or more employees.\84\ Therefore, if this general 
ratio continues to 1999 in the context of Phase I 220 MHz licensees, we 
estimate that nearly all such licensees are small businesses under the 
SBA's definition.
---------------------------------------------------------------------------

    \83\ 13 CFR 121.201, SIC Code 4812. This definition provides 
that a small entity is a radiotelephone company employing no more 
than 1,500 persons.
    \84\ U.S. Bureau of the Census, U.S. Department of Commerce, 
1992 Census of Transportation, Communications, and Utilities, UC92-
S-1, Subject Series, Establishment and Firm Size, Table 5, 
Employment Size of Firms; 1992, SIC code 4812 (issued May 1995).
---------------------------------------------------------------------------

    54. 220 MHz Radio Service--Phase II Licensees. The Phase II 220 MHz 
service is a new service, and is subject to spectrum auctions. The 
Commission has adopted criteria for defining small businesses and very 
small businesses for purposes of determining their eligibility for 
special provisions such as bidding credits and installment payments. We 
have defined a small business as an entity that, together with its 
affiliates and controlling principals, has average gross revenues not 
exceeding $15 million for the preceding three years. Additionally, a 
very small business is defined as an entity that, together with its 
affiliates and controlling principals, has average gross revenues that 
are not more than $3 million for the preceding three years. An auction 
of Phase II licenses commenced on September 15, 1998, and closed on 
October 22, 1998. 908 licenses were auctioned in 3 different-sized 
geographic areas: three nationwide licenses, 30 Regional Economic Area 
Group Licenses, and 875 Economic Area (EA) Licenses. Of the 908 
licenses auctioned, 693 were sold. Companies claiming small business 
status won: one of the Nationwide licenses, 67% of the Regional 
licenses, and 54% of the EA licenses. As of January 22, 1999, the 
Commission announced that it was prepared to grant 654 of the Phase II 
licenses won at auction.
    55. 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.\85\ 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.\86\ At present, 
there are approximately 24,000 Private Paging licenses and 74,000 
Common Carrier Paging licenses. According to the most recent Carrier 
Locator data, 137 carriers reported that they were engaged in the 
provision of either paging or messaging services, which are placed 
together in the data.\87\ 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 137 small paging carriers that may 
be affected by the decisions

[[Page 41329]]

and rule changes adopted in this Order. We estimate that the majority 
of private and common carrier paging providers would qualify as small 
entities under the SBA definition.
---------------------------------------------------------------------------

    \85\ See 47 CFR 20.9(a)(1) (noting that private paging services 
may be treated as common carriage services).
    \86\ 13 CFR 121.201, SIC Code 4812.
    \87\ Carrier Locator at Fig. 1.
---------------------------------------------------------------------------

    56. 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 FRFA, that all of the 
licenses will be awarded to small entities, as that term is defined by 
the SBA.
    57. Rural Radiotelephone Service. The Commission has not adopted a 
definition of small entity specific to the Rural Radiotelephone 
Service.\88\ A significant subset of the Rural Radiotelephone Service 
is the Basic Exchange Telephone Radio Systems (BETRS).\89\ We will use 
the SBA's definition applicable to radiotelephone companies, i.e., an 
entity employing no more than 1,500 persons.\90\ 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.
---------------------------------------------------------------------------

    \88\ The service is defined in section 22.99 of the Commission's 
rules, 47 CFR 22.99.
    \89\ BETRS is defined in sections 22.757 and 22.759 of the 
Commission's rules, 47 CFR 22.757, 22.759.
    \90\ 13 CFR 121.201, SIC Code 4812.
---------------------------------------------------------------------------

    58. Air-Ground Radiotelephone Service. The Commission has not 
adopted a definition of small entity specific to the Air-Ground 
Radiotelephone Service.\91\ Accordingly, we will use the SBA's 
definition applicable to radiotelephone companies, i.e., an entity 
employing no more than 1,500 persons.\92\ 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.
---------------------------------------------------------------------------

    \91\ The service is defined in section 22.99 of the Commission's 
rules, 47 CFR 22.99.
    \92\ 13 CFR 121.201, SIC Code 4812.
---------------------------------------------------------------------------

    59. Private Land Mobile Radio (PLMR). PLMR systems serve an 
essential role in a range of industrial, business, land transportation, 
and public safety activities.\93\ 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.
---------------------------------------------------------------------------

    \93\ See 47 CFR 20.9(a)(2) (noting that certain Industrial/
Business Pool service may be treated as common carriage service).
---------------------------------------------------------------------------

    60. 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 \94\ 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.
---------------------------------------------------------------------------

    \94\ Federal Communications Commission, 60th Annual Report, 
Fiscal Year 1994, at 116.
---------------------------------------------------------------------------

    61. Fixed Microwave Services. Microwave services include common 
carrier,\95\ private-operational fixed,\96\ and broadcast auxiliary 
radio services.\97\ 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 FRFA, we will utilize the SBA's definition 
applicable to radiotelephone companies--i.e., an entity with no more 
than 1,500 persons.\98\ 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.
---------------------------------------------------------------------------

    \95\ 47 CFR 101 et seq. (formerly, Part 21 of the Commission's 
rules).
    \96\ 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.
    \97\ 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.
    \98\ 13 CFR 121.201, SIC Code 4812.
---------------------------------------------------------------------------

    62. 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.\99\ 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.
---------------------------------------------------------------------------

    \99\ This service is governed by Subpart I of Part 22 of the 
Commission's Rules. See 47 CFR 22.1001-22.1037.
---------------------------------------------------------------------------

    63. Wireless Communications Services. This service can be used for 
fixed, mobile, radio location 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 one that qualified as a small business entity. We conclude that the 
number of geographic area WCS licensees that may be affected by the 
decisions and rule changes adopted in this Order includes these eight 
entities.

IV. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements:

    64. The decisions and rule changes adopted in this Order will 
reduce the reporting and recordkeeping requirements on 
telecommunications service providers regulated under the Communications 
Act. As currently structured, telecommunications carriers and other 
service providers having interstate revenues are required to file, at 
different times throughout the year, a number of contributor reporting 
worksheets that often reflect duplicative reporting requirements. In 
this Order, the Commission reduces these regulatory burdens by 
combining the multiple worksheets into one unified Telecommunications 
Reporting Worksheet. In addition, the Commission

[[Page 41330]]

further reduces 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.\100\ We expect that, by adopting these proposals, 
telecommunications service providers will experience an appreciable 
reduction in reporting, recordkeeping, and other compliance burdens.
---------------------------------------------------------------------------

    \100\ 47 U.S.C. 413.
---------------------------------------------------------------------------

V. Steps Taken to Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered:

    65. In the Contributor Reporting Requirements Notice, 63 FR 54090 
(October 8, 1998), the Commission sought comment on ways to simplify 
its contributor reporting requirements and, in particular, whether a 
unified worksheet would reduce regulatory and administrative burden on 
reporting carriers.\101\ Commenters were nearly unanimous in their 
support of the Commission's proposals in the Notice. In response to 
numerous proposals to modify the data collected in the worksheet, the 
Commission developed the final Telecommunications Reporting Worksheet 
so that it will collect the minimum information necessary to ensure the 
equitable and efficient funding of the support and cost recovery 
mechanisms.\102\ Accordingly, we conclude that the impact of this 
proceeding should be beneficial to small businesses because the 
decisions and rule changes adopted in this Order will reduce the 
reporting or recordkeeping requirements on all communications common 
carriers.
---------------------------------------------------------------------------

    \101\ See Contributor Reporting Requirements Notice, 13 FCC Rcd 
19295, 19304, 63 FR 54090 (October 8, 1998).
    \102\ See Sections III. B. of the Order (discussing the use of a 
consolidated worksheet), and III.D.2.b. of the Order (discussing the 
September universal service filing).
---------------------------------------------------------------------------

    Report to Congress: The Commission will send a copy of the 
Contributor Reporting Requirements Order, including this FRFA, in a 
report to be sent to Congress pursuant to the Small Business Regulatory 
Enforcement Fairness Act of 1996.\103\ In addition, the Commission will 
send a copy of the Order, including this FRFA, to the Chief Counsel for 
Advocacy of the Small Business Administration. A copy of the Order and 
FRFA (or summaries thereof) will also be published in the Federal 
Register.\104\
---------------------------------------------------------------------------

    \103\ See 5 U.S.C. 801(a)(1)(A).
    \104\ See 5 U.S.C. 604(b).
---------------------------------------------------------------------------

List of Subjects

47 CFR Part 1

    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.
    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.
Shirley S. Suggs,
Chief, Publications Branch.

Rule Changes

    Parts 1, 52, 54, and 64 of the Code of Federal Regulations are 
amended as follows:

PART 1--PRACTICE AND PROCEDURE

    1. The authority citation for part 1 continues to read as follows:

    Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, and 303(r), 
309.

    2. Section 1.47(h) is revised to read as follows:


Sec. 1.47  Service of documents and proof of service.

* * * * *
    (h) Every common carrier subject to the Communications Act of 1934, 
as amended, shall designate an agent in the District of Columbia, and 
may designate additional agents if it so chooses, upon whom service of 
all notices, process, orders, decisions, and requirements of the 
Commission may be made for and on behalf of said carrier in any 
proceeding before the Commission. Such designation shall include, for 
both the carrier and its designated agents, a name, business address, 
telephone or voicemail number, facsimile number, and, if available, 
Internet e-mail address. The carrier shall additionally list any other 
names by which it is known or under which it does business, and, if the 
carrier is an affiliated company, the parent, holding, or management 
company. Within thirty (30) days of the commencement of provision of 
service, each carrier shall file such information with the Formal 
Complaints and Investigations Branch of the Common Carrier Bureau. 
Carriers may file a hard copy of the relevant portion of the 
Telecommunications Reporting Worksheet, as delineated by the Commission 
in the Federal Register, to satisfy this requirement. Each 
Telecommunications Reporting Worksheet filed annually by a common 
carrier must contain a name, business address, telephone or voicemail 
number, facsimile number, and, if available, Internet e-mail address 
for its designated agents, regardless of whether such information has 
been revised since the previous filing. Carriers must notify the 
Commission within one week of any changes in their designation 
information by filing revised portions of the Telecommunications 
Reporting Worksheet with the Formal Complaints and Investigations 
Branch of the Common Carrier Bureau. A paper copy of this designation 
list shall be maintained in the Office of the Secretary of the 
Commission. Service of any notice, process, orders, decisions or 
requirements of the Commission may be made upon such carrier by leaving 
a copy thereof with such designated agent at his office or usual place 
of residence. If a carrier fails to designate such an agent, service of 
any notice or other process in any proceeding before the Commission, or 
of any order, decision, or requirement of the Commission, may be made 
by posting such notice, process, order, requirement, or decision in the 
Office of the Secretary of the Commission.

PART 52--NUMBERING

    3. The authority citation for part 52 continues to read as follows:

    Authority: Sec. 1, 2 , 4, 5, 48 Stat. 1066, as amended; 47 
U.S.C. 151, 152, 154, 155 unless otherwise noted. Interpret or apply 
secs. 3, 4, 201-205, 207-209, 218, 225-7, 251-2, 271 and 332, 48 
Stat. 1070, as amended, 1077; 47 U.S.C. 153, 154, 201-205, 207-09, 
218, 225-7, 251-2, 271 and 332 unless otherwise noted.

    4. Section 52.16 is amended by revising paragraphs (b) and (c) to 
read as follows:


Sec. 52.16  Billing and Collection Agent.

* * * * *

[[Page 41331]]

    (b) Distribute to carriers the ``Telecommunications Reporting 
Worksheet,'' described in Sec. 52.17(b).
    (c) Keep confidential all data obtained from carriers and not 
disclose such data in company-specific form unless authorized by the 
Commission. Subject to any restrictions imposed by the Chief of the 
Common Carrier Bureau, the B & C Agent may share data obtained from 
carriers with the administrators of the universal service support 
mechanism (See 47 CFR 54.701 of this chapter), the TRS Fund (See 47 CFR 
64.604(c)(4)(iii)(H) of this chapter), and the local number portability 
cost recovery (See 47 CFR 52.32). The B & C Agent shall keep 
confidential all data obtained from other administrators. The B & C 
Agent shall use such data, from carriers or administrators, only for 
calculating, collecting and verifying payments. The Commission shall 
have access to all data reported to the Administrator. Contributors may 
make requests for Commission nondisclosure of company-specific revenue 
information under Sec. 0.459 of this chapter by so indicating on the 
Telecommunications Reporting Worksheet at the time that the subject 
data are submitted. The Commission shall make all decisions regarding 
nondisclosure of company-specific information.
* * * * *
    5. Section 52.17 is revised to read as follows:


Sec. 52.17  Costs of number administration.

    All telecommunications carriers in the United States shall 
contribute on a competitively neutral basis to meet the costs of 
establishing numbering administration.
    (a) Contributions to support numbering administration shall be the 
product of the contributors' end-user telecommunications revenues for 
the prior calendar year and a contribution factor determined annually 
by the Chief of the Common Carrier Bureau; such contributions to be no 
less than twenty-five dollars ($25). The contribution factor shall be 
based on the ratio of expected number administration expenses to end-
user telecommunications revenues. Carriers that have no end-user 
telecommunications revenues shall contribute twenty-five dollars ($25). 
In the event that contributions exceed or are inadequate to cover 
administrative costs, the contribution factor for the following year 
shall be adjusted by an appropriate amount.
    (b) All telecommunications carriers in the United States shall 
complete and submit a ``Telecommunications Reporting Worksheet'' (as 
published by the Commission in the Federal Register), which sets forth 
the information needed to calculate contributions referred to in 
paragraph (a) of this section. The worksheet shall be certified to by 
an officer of the contributor, and subject to verification by the 
Commission or the B & C Agent at the discretion of the Commission. The 
Chief of the Common Carrier Bureau may waive, reduce, modify, or 
eliminate contributor reporting requirements that prove unnecessary and 
require additional reporting requirements that the Bureau deems 
necessary to the sound and efficient administration of the number 
administration cost recovery.
    6. Section 52.32 is amended by revising paragraphs (b) and (c) and 
by adding paragraph (d) to read as follows:


Sec. 52.32  Allocation of the shared costs of long-term number 
portability.

* * * * *
    (b) All telecommunications carriers providing service in the United 
States shall complete and submit a ``Telecommunications Reporting 
Worksheet'' (as published by the Commission in the Federal Register), 
which sets forth the information needed to calculate contributions 
referred to in paragraph (a) of this section. The worksheet shall be 
certified to by an officer of the contributor, and subject to 
verification by the Commission or the administrator at the discretion 
of the Commission. The Chief of the Common Carrier Bureau may waive, 
reduce, modify, or eliminate contributor reporting requirements that 
prove unnecessary and require additional reporting requirements that 
the Bureau deems necessary to the sound and efficient administration of 
long-term number portability.
    (c) Local number portability administrators shall keep all data 
obtained from contributors confidential and shall not disclose such 
data in company-specific form unless directed to do so by the 
Commission. Subject to any restrictions imposed by the Chief of the 
Common Carrier Bureau, the local number portability administrators may 
share data obtained from carriers with the administrators of the 
universal service support mechanism (See 47 CFR 54.701 of this 
chapter), the TRS Fund (See 47 CFR 64.604(c)(4)(iii)(H) of this 
chapter), and the North American Numbering Plan cost recovery (See 47 
CFR 52.16). The local number portability administrators shall keep 
confidential all data obtained from other administrators. The 
administrators shall use such data, from carriers or administrators, 
only for purposes of administering local number portability. The 
Commission shall have access to all data reported to the Administrator. 
Contributors may make requests for Commission nondisclosure of company-
specific revenue information under Sec. 0.459 of this chapter by so 
indicating on the Telecommunications Reporting Worksheet at the time 
that the subject data are submitted. The Commission shall make all 
decisions regarding nondisclosure of company-specific information.
    (d) Once a telecommunications carrier has been allocated, pursuant 
to paragraph (a)(1) or (a)(2) of this section, its portion of the 
shared costs of long-term number portability attributable to a regional 
database, the carrier shall treat that portion as a carrier-specific 
cost directly related to providing number portability.

PART 54--UNIVERSAL SERVICE

    7. The authority citation for part 54 continues to read as follows:

    Authority: 47 U.S.C. 1, 4(i), 201, 205, 214, and 254 unless 
otherwise noted.

    8. Section 54.708 is revised to read as follows:


Sec. 54.708  De minimis exemption.

    If a contributor's contribution to universal service in any given 
year is less than $10,000 that contributor will not be required to 
submit a contribution or Telecommunications Reporting Worksheet for 
that year unless it is required to do so to by our rules governing 
Telecommunications Relay Service (47 CFR 64.601 et seq. of this 
chapter), numbering administration (47 CFR 52.1 et seq. of this 
chapter), or shared costs of local number portability (47 CFR 52.21 et 
seq. of this chapter). If a contributor improperly claims exemption 
from the contribution requirement, it will subject to the criminal 
provisions of sections 220(d) and (e) of the Act regarding willful 
false submissions and will be required to pay the amounts withheld plus 
interest.
    9. Section 54.709 is amended by revising paragraphs (a) 
introductory text, (a)(2), and (d) to read as follows:


Sec. 54.709  Computations of required contributions to universal 
service support mechanisms.

    (a) Contributions to the universal service support mechanisms shall 
be based on contributors' end-user telecommunications revenues and 
contribution factors determined quarterly by the Commission.
* * * * *

[[Page 41332]]

    (2) The quarterly universal service contribution factors shall be 
based on the ratio of total projected quarterly expenses of the 
universal service support programs to total end-user telecommunications 
revenues. The Commission shall determine two contribution factors, one 
of which shall be applied to interstate and international end-user 
telecommunications revenues and the other of which shall be applied to 
interstate, intrastate, and international end-user telecommunications 
revenues. The Commission shall approve the Administrator's quarterly 
projected costs of universal service support programs, taking into 
account demand for support and administrative expenses. The total 
subject revenues shall be compiled by the Administrator based on 
information contained in the Telecommunications Reporting Worksheets 
described in Sec. 54.711(a).
* * * * *
    (d) If a contributor fails to file a Telecommunications Reporting 
Worksheet by the date on which it is due, the Administrator shall bill 
that contributor based on whatever relevant data the Administrator has 
available, including, but not limited to, the number of lines 
presubscribed to the contributor and data from previous years, taking 
into consideration any estimated changes in such data.
    10. Section 54.711 is revised to read as follows:


Sec. 54.711  Contributor reporting requirements.

    (a) Contributions shall be calculated and filed in accordance with 
the Telecommunications Reporting Worksheet which shall be published in 
the Federal Register. The Telecommunications Reporting Worksheet sets 
forth information that the contributor must submit to the Administrator 
on a semi-annual basis. The Commission shall announce by Public Notice 
published in the Federal Register and on its website the manner of 
payment and dates by which payments must be made. An officer of the 
contributor must certify to the truth and accuracy of the 
Telecommunications Reporting Worksheet, and the Commission or the 
Administrator may verify any information contained in the 
Telecommunications Reporting Worksheet at the discretion of the 
Commission. Inaccurate or untruthful information contained in the 
Telecommunications Reporting Worksheet may lead to prosecution under 
the criminal provisions of Title 18 of the United States Code. The 
Administrator shall advise the Commission of any enforcement issues 
that arise and provide any suggested response.
    (b) The Commission shall have access to all data reported to the 
Administrator. Contributors may make requests for Commission 
nondisclosure of company-specific revenue information under Sec. 0.459 
of this chapter by so indicating on the Telecommunications Reporting 
Worksheet at the time that the subject data are submitted. The 
Commission shall make all decisions regarding nondisclosure of company-
specific information. The Administrator shall keep confidential all 
data obtained from contributors, shall not use such data except for 
purposes of administering the universal service support programs, and 
shall not disclose such data in company-specific form unless directed 
to do so by the Commission. Subject to any restrictions imposed by the 
Chief of the Common Carrier Bureau, the Universal Service Administrator 
may share data obtained from contributors with the administrators of 
the North American Numbering Plan administration cost recovery (See 47 
CFR 52.16 of this chapter), the local number portability cost recovery 
(See 47 CFR 52.32 of this chapter), and the TRS Fund (See 47 CFR 
64.604(c)(4)(iii)(H) of this chapter). The Administrator shall keep 
confidential all data obtained from other administrators and shall not 
use such data except for purposes of administering the universal 
service support mechanisms.
    (c) The Bureau may waive, reduce, modify, or eliminate contributor 
reporting requirements that prove unnecessary and require additional 
reporting requirements that the Bureau deems necessary to the sound and 
efficient administration of the universal service support mechanisms.
    11. Section 54.713 is revised to read as follows:


Sec. 54.713  Contributors' failure to report or to contribute.

    A contributor that fails to file a Telecommunications Reporting 
Worksheet and subsequently is billed by the Administrator shall pay the 
amount for which it is billed. The Administrator may bill a contributor 
a separate assessment for reasonable costs incurred because of that 
contributor's filing of an untruthful or inaccurate Telecommunications 
Reporting Worksheet, failure to file the Telecommunications Reporting 
Worksheet, or late payment of contributions. Failure to file the 
Telecommunications Reporting Worksheet or to submit required quarterly 
contributions may subject the contributor to the enforcement provisions 
of the Act and any other applicable law. The Administrator shall advise 
the Commission of any enforcement issues that arise and provide any 
suggested response. Once a contributor complies with the 
Telecommunications Reporting Worksheet filing requirements, the 
Administrator may refund any overpayments made by the contributor, less 
any fees, interest, or costs.

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

    12. The authority citation for part 64 continues to read as 
follows:

    Authority: 47 U.S.C. 10, 201, 218, 226, 228, 332, unless 
otherwise noted.

    13. Section 64.604 is amended by revising paragraphs 
(c)(4)(iii)(A), (B), and (I) to read as follows:


Sec. 64.604  Mandatory minimum standards.

* * * * *
    (c) * * *
    (4) * * *
    (iii) * * *
    (A) Contributions. Every carrier providing interstate 
telecommunications services shall contribute to the TRS Fund on the 
basis of its relative share of interstate end-user telecommunications 
revenues as described herein. Contributions shall be made by all 
carriers who provide interstate services, including, but not limited 
to, cellular telephone and paging, mobile radio, operator services, 
personal communications service (PCS), access (including subscriber 
line charges), alternative access and special access, packet-switched, 
WATS, 800, 900, message telephone service (MTS), private line, telex, 
telegraph, video, satellite, intraLATA, international and resale 
services.
    (B) Contribution computations. Contributors' contribution to the 
TRS Fund shall be the product of their subject revenues for the prior 
calendar year and a contribution factor determined annually by the 
Commission. The contribution factor shall be based on the ratio between 
expected TRS Fund expenses to interstate end-user telecommunications 
revenues. In the event that contributions exceed TRS payments and 
administrative costs, the contribution factor for the following year 
will be adjusted by an appropriate amount, taking into consideration 
projected cost and usage changes. In the event that contributions are 
inadequate, the fund administrator may request authority from the 
Commission to borrow funds

[[Page 41333]]

commercially, with such debt secured by future years contributions. 
Each subject carrier must contribute at least $25 per year. Carriers 
whose annual contributions total less than $1,200 must pay the entire 
contribution at the beginning of the contribution period. Carriers 
whose contributions total $1,200 or more may divide their contributions 
into equal monthly payments. Carriers shall complete and submit, and 
contributions shall be based on, a ``Telecommunications Reporting 
Worksheet'' (as published by the Commission in the Federal Register). 
The worksheet shall be certified to by an officer of the contributor, 
and subject to verification by the Commission or the administrator at 
the discretion of the Commission. Contributors' statements in the 
worksheet shall be subject to the provisions of section 220 of the 
Communications Act of 1934, as amended. The fund administrator may bill 
contributors a separate assessment for reasonable administrative 
expenses and interest resulting from improper filing or overdue 
contributions. The Chief of the Common Carrier Bureau may waive, 
reduce, modify, or eliminate contributor reporting requirements that 
prove unnecessary and require additional reporting requirements that 
the Bureau deems necessary to the sound and efficient administration of 
the TRS Fund.
* * * * *
    (I) Information filed with the administrator. The administrator 
shall keep all data obtained from contributors and TRS providers 
confidential and shall not disclose such data in company-specific form 
unless directed to do so by the Commission. Subject to any restrictions 
imposed by the Chief of the Common Carrier Bureau, the TRS Fund 
administrator may share data obtained from carriers with the 
administrators of the universal service support mechanisms (See 47 CFR 
54.701 of this chapter), the North American Numbering Plan 
administration cost recovery (See 47 CFR 52.16 of this chapter), and 
the long-term local number portability cost recovery (See 47 CFR 52.32 
of this chapter). The TRS Fund Administrator shall keep confidential 
all data obtained from other administrators. The administrator shall 
not use such data, from carriers or administrators, except for purposes 
of administering the TRS Fund, calculating the regulatory fees of 
interstate common carriers, and aggregating such fee payments for 
submission to the Commission. The Commission shall have access to all 
data reported to the administrator, and authority to audit TRS 
providers. Contributors may make requests for Commission nondisclosure 
of company-specific revenue information under Sec. 0.459 of this 
chapter by so indicating on the Telecommunications Reporting Worksheet 
at the time that the subject data are submitted. The Commission shall 
make all decisions regarding nondisclosure of company-specific 
information.
* * * * *
[FR Doc. 99-19686 Filed 7-29-99; 8:45 am]
BILLING CODE 6712-01-P