[Federal Register Volume 64, Number 175 (Friday, September 10, 1999)]
[Proposed Rules]
[Pages 49128-49135]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23575]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 15, 22, 24, 25, 26, 27, 90, 95, 100, and 101

[WT Docket No. 99-266, FCC 99-205]


Extending Wireless Telecommunications Services to Tribal Lands

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: This document seeks comment on potential terrestrial wireless 
and satellite policy initiatives to address the telecommunications 
needs of Indians living on tribal lands. The Commission has been 
instructed to help ensure that all Americans have access to affordable 
telecommunications services. Consistent with that mandate, the 
Commission seeks to secure for consumers living on tribal lands the 
same opportunities to take advantage of telecommunications capabilities 
that other Americans have. In addition, the Commission seeks comment on 
whether to extend these initiatives to consumers in other unserved 
areas.

DATES: Comments are due November 9, 1999, and reply comments are due 
December 9, 1999.

ADDRESSES: Federal Communications Commission, Secretary, 445 Twelfth 
Street, SW, Room TW-A325, Washington, DC 20554. Comments filed through 
the Commission's Electronic Comment Filing System (ECFS) can be sent as 
an electronic file via the Internet to http://www.fcc.gov/e-file/
ecfs.html. See the Supplementary Information section for additional 
information about paper and electronic filing.

FOR FUTHER INFORMATION CONTACT: Joel Taubenblatt, Wireless 
Telecommunications Bureau, at (202) 418-1513.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking (NPRM) in WT Docket No. 96-266, adopted August 
5, 1999 and released August 18, 1999. The complete text of this NPRM is 
available for inspection and copying during normal business hours in 
the Commission's Reference Center, room CY-A257, 445 12th Street SW, 
Washington, DC. This NPRM is also available through the Internet at 
http://www.fcc.gov/Bureaus/Wireless/Notices/1999/fcc99205.pdf. The 
complete text may be purchased from the Commission's duplicating 
contractor, International Transcription Service, Inc. (ITS, Inc.) at 
1231 20th Street NW, Washington, DC 10036, (202) 857-3800.

I. Introduction

    1. The Telecommunications Act of 1996 has instructed the Commission 
to help ensure that all Americans have access to affordable 
telecommunications services. Consistent with that mandate, the 
Commission seeks comment on the potential of terrestrial and satellite 
wireless technologies to provide basic telephone service on tribal 
lands and other unserved areas, particularly in remote areas where 
wireline alternatives would be significantly more expensive. The 
Commission also seeks comment on possible changes to our rules for 
terrestrial wireless and satellite services that would provide greater 
incentives for terrestrial wireless and satellite carriers to extend 
service to tribal lands and other unserved areas.
    2. In conjunction with this NPRM, the Commission adopted a 
companion Further Notice of Proposed Rulemaking in CC Docket No. 96-45, 
FCC 99-204 (to be published at a later date in the Federal Register) in 
which the Commission proposes initiatives to encourage the extension of 
wireline service to tribal lands and other unserved areas and to expand 
subsidies for all telecommunications carriers--whether wireline, 
terrestrial wireless, or satellite--that serve such areas.

II. Background

    3. Commission representatives have met with many tribal leaders and 
other representatives of Indian communities to obtain their insights 
into the problem of low telecommunications penetration on tribal lands. 
Earlier this year, the Commission held two public hearings at which 
federal and state officials, tribal officials, consumer advocates, and 
telecommunications service providers addressed issues such as the costs 
of delivering services to remote areas having very low population 
densities, the impact of the size of local calling areas on the 
affordability of service, the quality of telephone service on tribal 
lands, the complexities of governmental jurisdiction and sovereignty 
issues, and the effects of low incomes and high unemployment on tribal 
lands on telephone service.
    4. Because many tribal lands, particularly those in the western 
United States, are geographically isolated, obtaining the lowest cost 
for providing basic telephone service to the population on the tribal 
land may often require use of a terrestrial wireless technology, a 
satellite technology, or a combination of these technologies. 
Terrestrial wireless technology includes both mobile services, such as 
cellular and Personal Communications Service (PCS), and fixed 
``wireless local loop'' services (WLL). A hybrid terrestrial/satellite 
wireless model would involve a satellite providing the communications 
link between an isolated community and the nation's public switched 
telephone network for long distance telephony, with a terrestrial 
wireless loop used to link the individual residents and businesses in a 
particular community for local telephony. Alternatively, satellites can 
be used alone for long distance and local telephony through the use of 
handheld phones that can communicate directly with the satellites.

III. Discussion

    5. Accordingly, this NPRM seeks comment on whether certain changes 
to the Commission's rules for terrestrial wireless and satellite 
services would provide greater incentives for existing carriers to 
extend these services to tribal lands and other unserved areas. 
Possible rule changes include: (a) Relaxing power and antenna height 
limits for wireless services to reduce the number of transmitting 
facilities required to provide service to a tribal land/unserved area, 
and thus reduce the cost of providing service to that tribal land/
unserved area, without creating a significant risk of interference 
among wireless systems; (b) creating incentives in our buildout 
requirements to encourage buildout on tribal lands and other unserved 
areas (e.g., for services subject to a specific population/geographic 
coverage requirement, apply a multiplier to the population or land area 
of a tribal land/unserved area for purposes of meeting the 
requirement);

[[Page 49129]]

(c) under certain conditions, allowing licensees to expand their 
coverage into adjacent licensing areas in order to provide full 
coverage to a tribal land, provided that the adjacent licensee has had 
a reasonable opportunity to extend coverage itself and has not done so, 
and provided that such coverage does not cause interference to the 
adjacent licensee's actual operations; (d) modifying restrictions on 
commercial use of spectrum by certain categories of non-commercial 
radio licensees in cases where such licensees wish to provide service 
to tribal lands or other unserved areas; (e) relaxing restrictions on 
the transfer of ``designated entity'' licenses to non-designated 
entities where the non-designated entity commits to provide service to 
a tribal land or other unserved area; and (f) adopting policies that 
encourage the use of satellite technology (or combined satellite-
wireless technology) to provide service on tribal lands or other 
unserved areas, where such service would be technologically efficient. 
The NPRM also seeks comment on whether the grant of additional 
flexibility to wireless licensees should be conditioned on the 
existence of a binding agreement between the licensee and relevant 
tribal authority.
    6. In addition to inquiring about incentives for existing 
terrestrial wireless and satellite carriers to extend service to tribal 
lands/unserved areas, the NPRM seeks comment on the following ways to 
encourage service to tribal lands/unserved areas in the Commission's 
development and licensing of new services: (a) Identifying frequency 
bands that are not currently allocated for telecommunications service 
that could potentially be used to provide basic telephone service on 
tribal lands/unserved areas; (b) allowing ``drop-in'' licensing of 
unused channels in otherwise allocated and licensed spectrum to provide 
service to tribal lands/unserved areas; (c) in new services, 
establishing licensing area boundaries that will not splinter tribal 
lands among multiple licensees; (d) adopting technical and operational 
rules that encourage development of low-cost technology in new services 
suitable for providing service in sparsely populated areas such as 
tribal lands; (e) in future auctions, awarding bidding credits to 
auction winners (regardless of designated entity status) who commit to 
provide service to tribal lands/unserved areas in their markets; and 
(f) using licensing authority to encourage the use of satellite 
technology to serve tribal lands/unserved areas.

IV. Procedural Matters

A. Ex Parte Rules--Permit-But-Disclose Proceeding

    7. This proceeding is a permit-but-disclose notice and comment 
rulemaking proceeding. Ex parte presentations are permitted, except 
during the Sunshine Agenda period, provided they are disclosed as 
provided in Commission rules. See generally 47 CFR 1.1202, 1.1203 and 
1.1206.

B. Initial Regulatory Flexibility Analysis

    8. As required by the Regulatory Flexibility Act, see 5 U.S.C. 603, 
the Commission has prepared an Initial Regulatory Flexibility Analysis 
(``IRFA'') of the possible impact on small entities of the proposals 
suggested in this NPRM. The IRFA is set forth in the section V. Written 
public comments are requested on the IRFA. These comments must be filed 
in accordance with the same filing deadlines as comments on the NPRM, 
as set forth in the ``DATES'' section and they must have a separate and 
distinct heading designating them as responses to the IRFA. The 
Commission's Office of Public Affairs, Reference Operations Division, 
will send a copy of this NPRM, including the IRFA, to the Chief Counsel 
for Advocacy of the Small Business Administration, in accordance with 
the Regulatory Flexibility Act, see 5 U.S.C. 603(a).

C. Initial Paperwork Reduction Act of 1995 Analysis

    9. This NPRM contains neither a new nor a modified information 
collection.

D. Comment Dates

    10. Pursuant to Secs. 1.415 and 1.419 of the Commission's Rules, 47 
CFR 1.415, 1.419, comments are due November 9, 1999, and reply comments 
are due December 9, 1999. Comments may be filed using the Commission's 
Electronic Comment Filing System (ECFS) or by filing paper copies. See 
Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121 
(May 1, 1998).
    11. Comments filed through the ECFS can be sent as an electronic 
file via the Internet to <http://www.fcc.gov/e-file/ecfs.html>. 
Generally, only one copy of an electronic submission must be filed. If 
multiple docket or rulemaking numbers appear in the caption of this 
proceeding, however, commenters must transmit one electronic copy of 
the comments to each docket or rulemaking number referenced in the 
caption. In completing the transmittal screen, commenters should 
include their full name, Postal Service mailing address, and the 
applicable docket or rulemaking number. Parties may also submit an 
electronic comment by Internet e-mail. To get filing instructions for 
e-mail comments, commenters should send an e-mail to [email protected], and 
should include the following words in the body of the message, ``get 
form .'' A sample form and directions will be sent 
in reply.
    12. Parties who choose to file by paper must file an original and 
four copies of each filing. If participants would like each 
Commissioner to receive a personal copy of their comments, an original 
plus nine copies must be filed. If more than one docket or rulemaking 
number appears in the caption of this proceeding, commenters must 
submit two additional copies for each additional docket or rulemaking 
number. All filings must be sent to the Commission's Secretary, Magalie 
Roman Salas, Office of the Secretary, Federal Communications 
Commission, The Portals, 445 Twelfth Street, S.W., Room TW-A325, 
Washington, DC 20554.
    13. All relevant and timely comments will be considered by the 
Commission before final action is taken in this proceeding. Comments 
and reply comments will be available for public inspection during 
regular business hours in the FCC Reference Center, The Portals, 445 
Twelfth Street, S.W., Room CY-A257, Washington, DC 20554.

V. Initial Regulatory Flexibility Analysis

    14. As required by the Regulatory Flexibility Act (RFA),\1\ the 
Commission has prepared this Initial Regulatory Flexibility Analysis 
(IRFA) of the possible significant economic impact on small entities of 
the policies and rules proposed in this Notice of Proposed Rulemaking. 
Written public comments are requested on this IRFA. These comments must 
be filed in accordance with the same filing deadlines for comments on 
the rest of this Notice of Proposed Rulemaking, as set forth in section 
IV.D of the SUPPLEMENTARY INFORMATION, and they must have a separate 
and distinct heading designating them as responses to the IRFA. The 
Commission's Office of Public Affairs, Reference Operations Division, 
will send a copy of this Notice of Proposed Rulemaking, including the 
IRFA, to the Chief Counsel for Advocacy

[[Page 49130]]

of the Small Business Administration, in accordance with the RFA.\2\
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    \1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et seq., has 
been amended by the Contract With America Advancement Act of 1996, 
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).
    \2\ See 5 U.S.C. 603(a).
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A. Need for and Objectives of the Proposed Rules

    15. We are issuing this Notice of Proposed Rulemaking to seeks 
comment on potential terrestrial wireless and satellite policy 
initiatives to address the telecommunications needs of consumers living 
on tribal lands. As stated, the Telecommunications Act of 1996 
instructed the Commission to help ensure that all Americans have access 
to affordable telecommunications services. Consistent with that 
mandate, we seek to secure for consumers living on tribal lands the 
same opportunities to take advantage of telecommunications capabilities 
that other Americans have. In addition, we seek comment on whether to 
extend these initiatives to consumers in other unserved areas.
    16. Specifically, this Notice of Proposed Rulemaking seeks comment 
on the following potential initiatives for encouraging existing 
wireless licensees to provide telecommunications service to tribal 
lands and other unserved areas: (a) Relaxing antenna height and 
transmitter power limitations applicable to service providers in tribal 
lands and other unserved areas; (b) establishing flexible buildout 
requirements for carriers providing telephone service to tribal lands 
and other unserved areas; (c) permitting licensees to expand coverage 
into adjacent licensing areas in order to provide full coverage to 
tribal lands and other unserved areas; (d) allowing licensees in 
certain private (non-CMRS) services to provide basic telephone service 
to tribal lands and other unserved areas; (e) lifting restrictions on 
transfer of wireless licenses awarded to designated entities (DEs) for 
carriers providing service to tribal lands and other unserved areas; 
(f) modifying regulations to promote the deployment of satellite 
technology to tribal lands and other unserved areas; and (g) granting 
of additional flexibility to carriers providing service to tribal lands 
and other unserved areas based on the existence of a binding agreement 
between the carrier and the affected tribe.
    17. In addition, this Notice of Proposed Rulemaking seeks comment 
on the following ways to encourage service to tribal lands/unserved 
areas in the Commission's development and licensing of new services: 
(a) Identifying frequency bands that are not currently allocated for 
telecommunications service that could potentially be used to provide 
basic telephone service on tribal lands/unserved areas; (b) allowing 
``drop-in'' licensing of unassigned or unused channels in otherwise 
allocated and licensed spectrum to provide service to tribal lands/
unserved areas; (c) establishing licensing area boundaries for new 
services that will not splinter tribal lands among multiple licensees; 
(d) adopting technical and operational rules that encourage development 
of low-cost technology in new services suitable for providing service 
in sparsely populated areas such as tribal lands; (e) in future 
auctions, awarding bidding credits to auction winners (regardless of 
designated entity status) who commit to provide service to tribal 
lands/unserved areas in their markets; and (f) using our licensing 
authority to encourage the provision of satellite-based 
telecommunication services to tribal lands and other unserved areas.

B. Legal Basis

    18. The potential actions on which comment is sought in this Notice 
of Proposed Rulemaking would be authorized under sections 4(i), 303(r), 
and 309(j) of the Communications Act of 1934, as amended, 47 U.S.C. 
154(i), 303(r), and 309(j).

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

    19. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted.\3\ The RFA generally 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \4\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\5\ A small business concern is one that: 
(a) Is independently owned and operated; (b) is not dominant in its 
field of operation; and (c) satisfies any additional criteria 
established by the Small Business Administration (SBA).\6\ A small 
organization is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
\7\ Nationwide, as of 1992, there were approximately 275,801 small 
organizations.\8\ And finally, ``Small governmental jurisdiction'' 
generally means ``governments of cities, counties, towns, townships, 
villages, school districts, or special districts, with a population of 
less than 50,000.'' \9\ As of 1992, there were approximately 85,006 
such jurisdictions in the United States.\10\ This number includes 
38,978 counties, cities, and towns; of these, 37,566, or 96 percent, 
have populations of fewer than 50,000.\11\ The Census Bureau estimates 
that this ratio is approximately accurate for all governmental 
entities. Thus, of the 85,006 governmental entities, we estimate that 
81,600 (91 percent) are small entities.
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    \3\ 5 U.S.C. 603(b)(3).
    \4\ Id. at 601(6).
    \5\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small business concern'' in 15 U.S.C. 632). Pursuant to the 
RFA, 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(s) in the Federal Register.'' 5 U.S.C. 601(3).
    \6\ Small Business Act, 15 U.S.C. 632.
    \7\ 5 U.S.C. 601(4).
    \8\ 1992 Economic Census, U.S. Bureau of the Census, Table 6 
(special tabulation of data under contract to Office of Advocacy of 
the U.S. Small Business Administration).
    \9\ 5 U.S.C. 601(5).
    \10\ U.S. Dept. of Commerce, Bureau of the Census, ``1992 Census 
of Governments.''
    \11\ Id.
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    20. We further describe and estimate the number of small business 
concerns that may be affected by the proposed rules, if adopted, 
including wireless and satellite service providers. To assist the 
Commission in analyzing the total number of potentially affected small 
entities, commenters are requested to provide estimates of the number 
of small entities that may be affected by any rule changes resulting 
from this Notice of Proposed Rulemaking.
i. Wireless (Radiotelephone) Providers
    21. 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.\12\ According to SBA's definition, a small business 
radiotelephone company is one employing no more than 1,500 persons.\13\ 
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

[[Page 49131]]

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 policies and rules 
proposed in this Notice of Proposed Rulemaking. We next attempt to 
refine further this estimate to correspond with the categories of 
wireless (radiotelephone) companies that are commonly used under our 
rules.
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    \12\ 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'').
    \13\ 13 CFR 121.201, SIC Code 4812.
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    22. 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 policies and rules 
proposed herein, if adopted, 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 radiotelephone 
(wireless) companies.\14\ To the extent that the Commission has adopted 
definitions for small entities providing PCS and SMR services, we 
discuss those definitions. 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.\15\ 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, 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 policies and 
rules proposed in this Notice of Proposed Rulemaking.
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    \14\ Id.
    \15\ FCC, Carrier Locator: Interstate Service Providers, Figure 
1 (Jan. 1999) (Carrier Locator). See also 47 CFR 64.601 et seq. 
(TRS). The most reliable source of information regarding 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).
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    23. 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.\16\ 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.\17\ These regulations defining 
``small entity'' in the context of broadband PCS auctions have been 
approved by SBA.\18\ No small businesses within the SBA-approved 
definition bid successfully for licenses in Blocks A and B. There were 
90 winning bidders that qualified as small entities in the Block C 
auctions. A total of 93 small and very small business bidders won 
approximately 40% of the 1,479 licenses for Blocks D, E, and F. 
However, licenses for Blocks C through F have not been awarded fully, 
therefore there are few, if any, small businesses currently providing 
PCS services. Based on this information, we 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 SBA and the 
Commissioner's auction rules.
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    \16\ 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, 61 FR 33859 (July 1, 
1996); FCC 96-278, WT Docket No. 96-59, Paras. 57-60 (June 24, 
1996), see also 47 CFR 24.720(b).
    \17\ Id., at para. 60.
    \18\ Implementation of Section 309(j) of the Communications 
Act--Competitive Bidding, PP Docket No. 93-253, Fifth Report and 
Order, 59 FR 37566 (July 22, 1994), 9 FCC Rcd.5532, 5581-84 (1994).
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    24. 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,\19\ and approval for the 900 MHz SMR 
definition has been sought. The proposed rules 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. Consequently, we estimate, for purposes of this IRFA, that all 
of the extended implementation authorizations may be held by small 
entities, some of which may be affected by the policies and rules 
proposed in this Notice of Proposed Rulemaking.
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    \19\ 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. 89-553, Second Order on 
Reconsideration and Seventh Report and Order, 60 FR 48913 (September 
21, 1995), 11 FCC Rcd 2639, 2693-702 (1995); Amendment of Part 90 of 
the Commission's Rules to Facilitate Future Development of SMR 
Systems in the 800 MHz Frequency Band, PR Docket No. 93-144, First 
Report and Order, Eighth Report and Order, and Second Further Notice 
of Proposed Rulemaking, 61 FR 6212 (February 16, 1996), 11 FCC Rcd 
1463 (1995).
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    25. 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 estimate that the number of geographic area SMR 
licensees that may be affected by the policies and rules proposed in 
this Notice of Proposed Rulemaking 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 estimate, for purposes of 
this IRFA, that all of the licenses may be awarded to small entities, 
some of which may be affected by the policies and rules proposed in 
this Notice of Proposed Rulemaking.
    26. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service 
has both Phase I and Phase II licenses. There

[[Page 49132]]

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.\20\ According to the Bureau of the Census, 
only 12 radiotelephone firms out of a total of 1,178 firms that 
operated during 1992 had 1,000 or more employees.\21\ 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.
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    \20\ 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.
    \21\ 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).
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    27. 220 MHz Radio Service--Phase II Licensees. The Phase II 220 MHz 
service is a new service, and is subject to spectrum auctions. In the 
220 MHz Third Report and Order we 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.\22\ 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 three million dollars 
for the preceding three years.\23\ An auction of Phase II licenses 
commenced on September 15, 1998, and closed on October 22, 1998.\24\ 
908 licenses were auctioned in three 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.\25\ A 
reauction of the remaining, unsold licenses was completed on June 30, 
1999, with 16 bidders winning 222 of the Phase II licenses.\26\ As a 
result, we estimate that 16 or fewer of these final winning bidders are 
small or very small businesses.
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    \22\ Amendment of Part 90 of the Commission's Rules to Provide 
for the Use of the 220-222 MHz Band by Private Land Mobile Radio 
Service, Third Report and Order and Fifth Notice of Proposed 
Rulemaking, 12 FCC Rcd 10943, 11068-70, at paras. 291-295 (1997) 
(220 MHz Third Report and Order) 62 FR 15978 (April 3, 1997). The 
SBA has approved these definitions. See Letter from A. Alvarez, 
Administrator, SBA, to D. Phythyon, Chief, Wireless 
Telecommunications Bureau, FCC (Jan. 6, 1998).
    \23\ 220 MHz Third Report and Order, 62 FR 15978 (April 3, 
1997), 12 FCC Rcd at 11068-69, para. 291.
    \24\ See generally Public Notice, ``220 MHz Service Auction 
Closes,'' Report No. WT 98-36 (Wireless Telecom. Bur. Oct. 23, 
1998).
    \25\ Public Notice, ``FCC Announces It Is Prepared to Grant 654 
Phase II 220 MHz Licenses After Final Payment Is Made,'' Report No. 
AUC-18-H, DA No. 99-229 (Wireless Telecom. Bur. Jan. 22, 1999).
    \26\ Public Notice, ``Phase II 220 MHz Service Spectrum Auction 
Closes,'' Report No. AUC-99-24-E, DA No. 99-1287 (Wireless Telecom. 
Bur. July 1, 1999).
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    28. Paging Licensees. On June 7, 1999, the Wireless 
Telecommunications Bureau announced the first in a series of auctions 
of paging licenses, the first to commence on December 7, 1999.\27\ The 
Bureau has proposed that the first auction be composed of 2,499 
licenses.\28\ The Commission utilizes a two-tiered definition of small 
businesses in the context of auctioning licenses in the Common Carrier 
Paging and exclusive Private Carrier Paging services.\29\ A small 
business is defined as either (a) 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 (b) 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. The SBA has approved this definition.\30\ At present, 
there are approximately 24,000 Private Paging licenses and 74,000 
Common Carrier Paging licenses. In addition, 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.\31\ Because the auction has yet to 
occur, we do not have data specifying the number of winning bidders 
that will meet the above small business definition. Also, we will 
assume that there currently are 137 or fewer small businesses paging 
carriers.
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    \27\ Public Notice, ``First Paging Service Spectrum Auction 
Scheduled for December 7, 1999,'' Report No. AUC-99-26-A, DA No. 99-
1103, 64 FR 36009 (July 2, 1999), (Wireless Telecommunications 
Bureau, June 7, 1999).
    \28\ Id.
    \29\ See 47 CFR 20.9(a)(1) (noting that private paging services 
may be treated as common carriage services).
    \30\ See Letter from A. Alvarez, Administrator, SBA, to A.J. 
Zoslov, Chief, Auctions Division, Wireless Telecommunications 
Bureau, FCC (Dec. 2, 1998).
    \31\ Carrier Locator at Fig. 1.
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    29. Narrowband PCS Licensees. The Commission has auctioned 
nationwide and regional licenses for narrowband PCS. There are 11 
nationwide and 30 regional licensees for narrowband PCS. The Commission 
does not have sufficient information to determine whether any of these 
licensees are small businesses within the SBA-approved definition for 
radiotelephone companies. At present, there have been no auctions held 
for the major trading area (MTA) and basic trading area (BTA) 
narrowband PCS licenses. The Commission anticipates a total of 561 MTA 
licenses and 2,958 BTA licenses will be awarded by auction. Such 
auctions have not yet been scheduled, however. Given that nearly all 
radiotelephone companies have no more than 1,500 employees and that no 
reliable estimate of the number of prospective MTA and BTA narrowband 
licensees can be made, we assume, for purposes of this IRFA, that all 
of the licenses will be awarded to small entities, as that term is 
defined by the SBA.
    30. Rural Radiotelephone Service. The Commission has not adopted a 
definition of small entity specific to the Rural Radiotelephone 
Service.\32\ A significant subset of the Rural Radiotelephone Service 
is the Basic Exchange Telephone Radio Systems (BETRS).\33\ We will use 
the SBA's definition applicable to radiotelephone companies, i.e., an 
entity employing no more than 1,500 persons.\34\ There are 
approximately 1,000 licensees in the Rural Radiotelephone Service, and 
we estimate that almost all of them qualify as small entities under the 
SBA's definition.
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    \32\ The service is defined in section 22.99 of the Commission's 
rules, 47 CFR 22.99.
    \33\ BETRS is defined in sections 22.757 and 22.759 of the 
Commission's rules, 47 CFR 22.757, 22.759.
    \34\ 13 CFR 121.201, SIC Code 4812.
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    31. Air-Ground Radiotelephone Service. The Commission has not 
adopted a definition of small entity specific to the Air-Ground 
Radiotelephone Service.\35\ Accordingly, we will use the SBA's 
definition applicable to radiotelephone companies, i.e., an entity 
employing no more than

[[Page 49133]]

1,500 persons.\36\ There are approximately 100 licensees in the Air-
Ground Radiotelephone Service, and we estimate that almost all of them 
qualify as small entities under the SBA definition.
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    \35\ The service is defined in section 22.99 of the Commission's 
rules, 47 CFR 22.99.
    \36\ 13 CFR 121.201, SIC Code 4812.
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    32. Private Land Mobile Radio (PLMR). PLMR systems, also known as 
Private Mobile Radio Service (PMRS) systems, serve an essential role in 
a range of industrial, business, land transportation, and public safety 
activities.\37\ 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. The Commission is unable at this time to estimate the number of 
small businesses, if any, that could be impacted by the proposed rules. 
However, the Commission's 1994 Annual Report on PLMRs \38\ 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 any small U.S. business that chooses to become licensed in this 
service. On July 21, 1999, the Wireless Telecommunications Bureau 
requested public comment on whether the licensing of PMRS frequencies 
in the 800 MHz band for commercial SMR use would serve the public 
interest.\39\
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    \37\ See 47 CFR 20.9(a)(2) (noting that certain Industrial/
Business Pool service may be treated as common carriage service).
    \38\ Federal Communications Commission, 60th Annual Report, 
Fiscal Year 1994, at 116.
    \39\ Public Notice, ``Wireless Telecommunications Bureau 
Incorporates Nextel Communications, Inc. Waiver Record into WT 
Docket No. 99-87: Seeks Comment on Licensing of PMRS Channels in the 
800 MHz Band for Use in Commercial SMR Systems,'' DA 99-1431 
(Wireless Telecom. Bureau July 21, 1999).
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    33. Fixed Microwave Services. Microwave services include common 
carrier,\40\ private-operational fixed \41\ and broadcast auxiliary 
radio services.\42\ At present, there are approximately 22,015 common 
carrier fixed licensees in the microwave services. The Commission has 
not yet defined a small business with respect to microwave services. 
For purposes of this IRFA, we will utilize the SBA's definition 
applicable to radiotelephone companies--i.e., an entity with no more 
than 1,500 persons.\43\ We estimate, for this purpose, that all of the 
Fixed Microwave licensees (excluding broadcast auxiliary licensees) 
would qualify as small entities under the SBA definition for 
radiotelephone companies.
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    \40\ 47 CFR 101 et seq. (formerly, Part 21 of the Commission's 
rules).
    \41\ 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.
    \42\ Auxiliary Microwave Service is governed by Part 74 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.
    \43\ 13 CFR 121.201, SIC Code 4812.
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    34. 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.\44\ At 
present, there are approximately 55 licensees in this service. We are 
unable at this time to estimate the number of licensees that would 
qualify as small entities under the SBA's definition for radiotelephone 
communications.
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    \44\ This service is governed by Subpart I of Part 22 of the 
Commission's Rules. See 47 CFR 22.1001-22.1037.
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    35. 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 rules proposed in the Further Notice includes these eight 
entities.
    36. Multipoint Distribution Systems (MDS). The Commission has 
defined ``small entity'' for the auction of MDS as an entity that, 
together with its affiliates, has average gross annual revenues that 
are not more than $40 million for the preceding three calendar 
years.\45\ This definition of a small entity in the context of MDS 
auctions has been approved by the SBA.\46\ The Commission completed its 
MDS auction in March 1996 for authorizations in 493 basic trading areas 
(BTAs). Of 67 winning bidders, 61 qualified as small entities.\47\
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    \45\ 47 CFR 21.961(b)(1).
    \46\ See Amendment of Parts 21 and 74 of the Commission's Rules 
With Regard to Filing Procedures in the Multipoint Distribution 
Service and in the Instructional Television Fixed Service and 
Implementation of Section 309(j) of the Communications Act--
Competitive Bidding, MM Docket No. 94-31 and PP Docket No. 93-253, 
Report and Order, 60 FR 36524 (July 17, 1999), 10 FCC Rcd 9589 
(1995).
    \47\ One of these small entities, O'ahu Wireless Cable, Inc., 
was subsequently acquired by GTE Media Ventures, Inc., which did not 
qualify as a small entity for purposes of the MDS auction.
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    37. MDS is also heavily encumbered with licensees of stations 
authorized prior to the auction. The SBA has developed a definition of 
small entities for pay television services, which includes all such 
companies generating $11 million or less in annual receipts.\48\ This 
definition includes multipoint distribution systems, and thus applies 
to MDS licensees and wireless cable operators who did not participate 
in the MDS auction. Information available to us indicates that there 
are 832 of these licensees and operators that do not generate revenue 
in excess of $11 million annually. Therefore, for purposes of this 
IRFA, we find there are approximately 892 small MDS providers as 
defined by the SBA and the Commission's auction rules, some which may 
be affected by the decisions and rules proposed in the Further Notice.
---------------------------------------------------------------------------

    \48\ 13 CFR 121.201.
---------------------------------------------------------------------------

ii. Satellite Providers
    38. International Service Providers. The Commission has not 
developed a definition of small entities applicable to licensees in the 
international services. Therefore, the applicable definition of small 
entity is the definition under the SBA rules applicable to 
Communications Services, Not Elsewhere Classified (NEC). This 
definition provides that a small entity is expressed as one with $11 
million or less in annual receipts.\49\ According to the Census Bureau, 
there were a total of 848 Communications Services NEC in operation in 
1992, and a total of 775 had annual receipts of less than $9.999

[[Page 49134]]

million.\50\ We note that those entities providing only international 
service will not be affected by our proposed rules, if adopted. We do 
not, however, have sufficient data to estimate with greater detail 
those entities providing both international and domestic services or 
only domestic service. Consequently, we estimate that there are fewer 
than 775 small international service entities potentially impacted by 
our rules.
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    \49\ 13 CFR 120.121, SIC 4899.
    \50\ United States Dept. of Commerce, Bureau of Census, 1992 
Economic Census Industry and Enterprise Receipts Size Report, at 
Table 2D.
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    39. Fixed Satellite Transmit/Receive Earth Stations. Based on 
actual payments from FY 1998, there are approximately 3,100 earth 
station authorizations, a portion of which are Fixed Satellite 
Transmit/Receive Earth Stations.\51\ We do not request nor collect 
annual revenue information, and thus are unable to estimate the number 
of the earth stations that would constitute a small business under the 
SBA definition.
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    \51\ See Assessment and Collection of Regulatory Fees for Fiscal 
Year 1999, Report and Order, FCC 99-146, 64 FR 35831 (July 1, 1999) 
at Attachment A (released June 18, 1999).
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    40. Fixed Satellite Small Transmit/Receive Earth Stations. There 
are 3,100 earth station authorizations, a portion of which are Fixed 
Satellite Small Transmit/Receive Earth Stations.\52\ We do not request 
nor collect annual revenue information, and thus are unable to estimate 
the number of fixed satellite transmit/receive earth stations that 
would constitute a small business under the SBA definition.
---------------------------------------------------------------------------

    \52\ Id.
---------------------------------------------------------------------------

    41. Fixed Satellite Very Small Aperture Terminal (VSAT) Systems. 
These stations operate on a primary basis, and frequency coordination 
with terrestrial microwave systems is not required. Thus, a single 
``blanket'' application may be filed for a specified number of small 
antennas and one or more hub stations. The Commission has processed 377 
applications.\53\ We do not request nor collect annual revenue 
information, and thus are unable to estimate the number of VSAT systems 
that would constitute a small business under the SBA definition.
---------------------------------------------------------------------------

    \53\ Id.
---------------------------------------------------------------------------

    42. Mobile Satellite Earth Stations. There are 11 licensees.\54\ We 
do not request or collect annual revenue information, and thus are 
unable to estimate the number of mobile satellite earth stations that 
would constitute a small business under the SBA definition.
---------------------------------------------------------------------------

    \54\ Id.
---------------------------------------------------------------------------

    43. Radio Determination Satellite Earth Stations. There are four 
licensees.\55\ We do not request nor collect annual revenue 
information, and thus are unable to estimate the number of radio 
determination satellite earth stations that would constitute a small 
business under the SBA definition.
---------------------------------------------------------------------------

    \55\ Id.
---------------------------------------------------------------------------

    44. Space Stations (Geostationary). Commission records show that 
there are 43 Geostationary Space Station licensees.\56\ We do not 
request nor collect annual revenue information, and thus are unable to 
estimate the number of geostationary space stations that would 
constitute a small business under the SBA definition.
---------------------------------------------------------------------------

    \56\ Id.
---------------------------------------------------------------------------

    45. Space Stations (Non-Geostationary). There are 12 Non-
Geostationary Space Station licensees, of which only two systems are 
operational.\57\ We do not request nor collect annual revenue 
information, and thus are unable to estimate the number of non-
geostationary space stations that would constitute a small business 
under the SBA definition.
---------------------------------------------------------------------------

    \57\ Id.
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D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    46. This Notice of Proposed Rulemaking proposes no additional 
reporting or recordkeeping measures. The Notice of Proposed Rulemaking 
does seek comment on whether the Commission should permit additional 
flexibility in its rules to create incentives for the extension of 
wireless or satellite service to tribal lands or other unserved areas. 
For example, in section III.A.1 of the Notice of Proposed Rulemaking, 
we seek comment on whether to relax antenna height and transmitter 
power limits for providers that commit to serving tribal lands or other 
unserved areas. In section III.A.2 of the Notice of Proposed 
Rulemaking, we seek comment on whether to liberalize our buildout rules 
for providers that commit to serve a tribal land or other unserved 
area. In section III.A.7 of the Notice of Proposed Rulemaking, we state 
that to the extent that we grant additional flexibility to providers, 
we believe it is important to ensure that providers actually provide 
service to tribal lands or other unserved areas in exchange for such 
flexibility. We therefore seek comment in that section on whether the 
grant of additional flexibility to wireless or satellite licensees 
should be conditioned on the existence of a binding agreement between 
the licensee and relevant tribal authority in the case of tribal lands, 
or a binding agreement between the licensee and another authority in 
the case of other unserved areas. To the extent that licensees choose 
to take advantage of any additional flexibility that we adopt, they may 
be required to comply with requirements to prove the existence of such 
binding agreements.

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

    47. As described in Section II of the Notice of Proposed 
Rulemaking, the Commission held two public hearings earlier this year 
at which federal and state officials, tribal officials, and 
telecommunications services providers addressed issues such as the 
costs of delivering services to remote areas having very low population 
densities, the impact of the size of local calling areas on the 
affordability of service, the quality of telephone service on tribal 
lands, the complexities of governmental jurisdiction and sovereignty 
issues, and the effects of low incomes and high unemployment on tribal 
lands on telephone service. Following up on the record developed in 
those hearings, we have decided to seek comment in this Notice of 
Proposed Rulemaking on specific potential initiatives that the 
Commission could adopt to facilitate the provision of 
telecommunications service to tribal lands and other unserved areas 
using wireless or satellite technologies.
    48. For example, in section III.B.1 of the Notice of Proposed 
Rulemaking, we seek comment on whether there are unallocated or 
unlicensed spectrum bands that could be used by telecommunications 
providers, including small entities, to serve the needs of tribal lands 
and other unserved areas. In section III.B of the Notice of Proposed 
Rulemaking, we seek comment on whether there are unused channels in 
otherwise allocated and licensed spectrum that could be used by 
telecommunications providers, including small entities, to provide 
telephone service to tribal lands and other unserved areas. In section 
III.A.5 of the Notice of Proposed Rulemaking, we seek comment on 
whether the Commission should modify its restrictions on the transfer 
of spectrum from ``designated entities'' (DEs) (entrepreneurs and small 
businesses) to non-DEs in order to facilitate the provision of 
telecommunications service to tribal lands or other unserved areas. We 
believe that at this juncture it is necessary to seek comment on the 
various alternatives set forth in this Notice of Proposed Rulemaking, 
including the three listed as examples, for encouraging the provision 
of telecommunications service to tribal

[[Page 49135]]

lands and other unserved areas. We encourage commenters to discuss any 
other alternatives that would minimize any significant economic impact 
on small entities.

F. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    49. None.

List of Subjects

47 CFR Part 1

    Communications common carriers, Radio, Telecommunications.

47 CFR Parts 15, 95, and 101

    Communications equipment, Radio.

47 CFR Part 22

    Communications common carriers, Communications equipment, Radio, 
Rural areas.

47 CFR Part 24

    Personal communications services, Radio.

47 CFR Part 25

    Communications common carriers, Communications equipment, Radio, 
Satellites.

47 CFR Part 26

    Communications common carriers, Radio.

47 CFR Part 27

    Wireless communications service, Radio.

47 CFR Part 90

    Common carriers, Communications equipment, Radio.

47 CFR Part 100

    Communications equipment, Radio, Satellites.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 99-23575 Filed 9-9-99; 8:45 am]
BILLING CODE 6712-01-P