[Federal Register Volume 64, Number 212 (Wednesday, November 3, 1999)]
[Proposed Rules]
[Pages 59719-59727]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28792]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 20, and 43

[CC Docket No. 99-301, FCC 99-283]


Local Competition and Broadband Reporting

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Federal Communications Commission 
proposes to collect basic information about the status of local 
telephone service competition and the deployment of advanced 
telecommunications capability, also known as broadband. The Commission 
seeks comment on all aspects of the proposal, including how it can best 
structure such a program to satisfy its needs without overburdening 
those entities that would be required to file.

DATES: Comments are due on or before December 3, 1999. Reply comments 
are due on or before December 20, 1999. Written comments by the public 
on the proposed information collections are due on or before December 
3, 1999. Written comments must be submitted by the Office of Management 
and Budget (OMB) on the proposed and/or modified information 
collections on or before January 3, 2000.

ADDRESSES: Comments and reply comments should be sent to the Office of 
the Secretary, Federal Communications Commission, 445 12th Street, SW, 
Washington, DC 20554, with a copy to Ms. Terry Conway of the Common 
Carrier Bureau, Federal Communications Commission, 445 12th Street, SW, 
6A-100, Washington, DC 20554. Parties should also file one copy of any 
documents filed in this docket with the Commission's copy contractor, 
International Transcription Services, Inc. (ITS), 1231 20th Street, NW, 
Washington, DC 20037. Parties may file electronically through the 
Internet at <http://www.fcc.gov/e-file/ecfs.html>. In addition to 
filing comments with the Secretary, a copy of any comments on the 
information collections contained herein should be submitted to Judy 
Boley, Federal Communications Commission, Room 1-C804, 445 12th Street, 
SW, Washington, DC 20554, or via the Internet to [email protected], and to 
Virginia Huth, OMB Desk Officer, 10236 NEOB, 725--17th Street, NW, 
Washington, DC 20503 or via the Internet to VH[email protected].

FOR FURTHER INFORMATION CONTACT: Dr. Ellen Burton, Industry Analysis 
Division, Common Carrier Bureau, at (202) 418-0958, or Thomas Beers, 
Deputy Chief of the Industry Analysis Division, Common Carrier Bureau, 
at (202) 418-0952. For additional information concerning the 
information collections contained in the Notice of Proposed Rulemaking 
(NPRM) contact Judy Boley at 202-418-0214, or via the Internet at 
[email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking (NPRM) released October 22, 1999 (FCC 99-283). 
The full text of the NPRM is available for inspection and copying 
during normal business hours in the FCC Reference Center, Room CY-A257, 
445 12th Street, SW, Washington, DC 20554. The complete text also may 
be purchased from the Commission's copy contractor, International 
Transcription Services, Inc. (202) 857-3800, 1231 20th Street, NW, 
Washington, DC 20037. Additionally, the complete item is available on 
the Commission's website at <http://www.fcc.gov/Bureaus/
Common__Carrier/Notices/1999/>.

Paperwork Reduction Act

    The NPRM summarized here contains either a proposed or modified 
information collection. The Commission, as part of its continuing 
effort to reduce paperwork burdens, invites the general public and the 
Office of Management and Budget (OMB) to comment on the information 
collection contained in the NPRM, as required by the Paperwork 
Reduction Act of 1995, Public Law 104-13. Public and agency comments 
are due at the same time as other comments on the NPRM; OMB 
notification of action is due 60 days from date of publication of this 
NPRM in the Federal Register. Comments

[[Page 59720]]

should address: (a) Whether the proposed collection of information is 
necessary for the proper performance of the functions of the 
Commission, including whether the information shall have practical 
utility; (b) the accuracy of the Commission's burden estimates; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (d) ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology.
    OMB Approval Number: 3060-0816.
    Title: ``Local Competition and Broadband Reporting, CC Docket No. 
99-301.''
    Form Number: FCC Form 477.
    Type of Review: Revision of Existing Collection.
    Respondents: Business or Not-for-profit institutions, including 
small businesses.
    Burden Estimate:

----------------------------------------------------------------------------------------------------------------
                                                                    Estimated time
                                         Number of  respondents      per response        Total annual burden
----------------------------------------------------------------------------------------------------------------
(1) Local Competition and Broadband
 Reporting:
    (a) Entities completing entire    Up to 75....................         120-576  Up to 19,144.
     data collection except section
     VI.
    (b) Entities completing only      Up to 70....................          32-236  Up to 4,792.
     section VI.
----------------------------------------------------------------------------------------------------------------

    Total Annual Burden: Up to 23,936 person-hours.
    Estimated Costs per Respondent: $0.00.
    Needs and Uses: The information collection for which approval is 
sought would be used by the Commission to gather information on the 
state of the development of local competition and broadband deployment. 
Without such information, the Commission faces significant difficulty 
in assessing the development of these markets and, therefore, is less 
able to fulfill its statutory responsibilities in accordance with the 
Communications Act of 1934, as amended.

Summary of the Notice of Proposed Rulemaking

    1. In the NPRM summarized here, we propose to collect basic 
information about the status of local telephone service competition and 
the deployment of advanced telecommunications capability, also known as 
broadband. We tentatively concludes that we need timely and reliable 
information about the pace and extent of developing local competition 
in different geographic areas in order to evaluate the effectiveness of 
actions that this Commission and the states are taking to promote local 
competition. We also tentatively conclude that we need timely and 
reliable information to assess the deployment of broadband services, as 
required by section 706 of the Telecommunications Act of 1996.
    2. Moreover, we tentatively conclude that this information would 
allow us to avoid ``one size fits all'' regulation, and, specifically, 
to reduce regulation wherever we can pursuant to new sections 10 and 11 
of the Act. 47 U.S.C. 160, 161. The Commission proposes a simple filing 
that should enable it to make better informed decisions, while placing 
as low a burden as possible on reporting entities. A proposed data 
collection form is attached to the NPRM as Attachment A. Currently, the 
Commission does not gather data of the type requested under this 
proposed program.
    3. Throughout the NPRM, we seek comment on all of the tentative 
conclusions we reach. We also encourage commenters to propose 
alternative means of collecting the needed information. The following 
text represents a brief summary of issues set out for discussion and 
comment in the NPRM.
    4. Types of Entities that Must Report: In the NPRM, we discuss the 
types of entities that should be required to report data describing the 
extent and intensity of local competition and the extent of broadband 
services deployment. Based on our determination that we need 
comprehensive data about developing local services competition, we 
tentatively conclude that large and medium incumbent local exchange 
carriers (LECs)--as well as their wireline and fixed wireless telephony 
competitors, and also their mobile wireless telephony potential 
competitors--should complete sections I-III of the survey if the 
reporting entity is a wireline or fixed wireless LEC and section VI if 
the entity is a mobile wireless telephony carrier. Consistent with our 
need for comprehensive local competition information, we tentatively 
conclude that the obligation to complete the survey should not depend 
on the type of technology that an incumbent LEC or competitive LEC uses 
to provide local service. We tentatively conclude that we should 
require carriers with 50,000 or more local access lines or channels (of 
any capacity) nationwide, or 50,000 or more subscribers nationwide to 
file information pursuant to this program. Further, we propose to 
collect information about certain mobile wireless services because of 
their potential to become substitutes for wireline service. Thus, we 
propose to require any carrier who provides mobile telephony (defined 
here as, real time, two-way switched voice service that is 
interconnected with the public switched network utilizing an in-network 
switching facility that enables the provider to reuse frequencies and 
accomplish seamless handoffs of subscriber calls) to report if such an 
entity has more than 50,000 subscribers nationwide. We note that 
providers of mobile telephony services may include facilities-based 
providers of cellular, broadband personal communications service (PCS), 
specialized mobile radio services (SMR), as well as providers using 
satellite technology. We ask commenters to address whether the 50,000 
nationwide access line/subscribers threshold that we propose is 
sufficient to provide the information that the Commission needs, while 
not burdening smaller entities.
    5. We next turn to a consideration of those entities that should 
report data on deployment of broadband services. The Notice tentatively 
concludes that given our broad statutory mandate under section 706 of 
the Telecommunications Act of 1996, to evaluate the deployment of 
broadband services, regardless of the transmission media or technology 
employed, the survey should include questions about the deployment of 
what we term ``full broadband'' services. For purposes of the proposed 
data collection, ``full broadband'' service is defined, consistent with 
the Advanced Telecommunications Report, as having an information 
carrying capacity of over 200 Kilobits per second (Kbps) in each 
direction, simultaneously. An Inquiry Concerning the Deployment of 
Advanced Telecommunications Capabilities to All Americans in a 
Reasonable and Timely Fashion, 14 FCC 2d 2398, paragraphs 20-25 
(Advanced Telecommunications Report). The Notice recognizes, however, 
that entities may provide services with bandwidth that exceeds voice 
grade (i.e. 48 Kbps) but is less than 200 Kbps, and seeks

[[Page 59721]]

comment on the extent to which the Commission should consider services 
deployed in this range of bandwidth in assessing the progress of 
broadband deployment. Actual or potential providers of broadband 
services may include: LECs (incumbent and competitive, both resale and 
facilities-based, regardless of the technology used), cable television 
companies, utilities, MMDS/MDS/''wireless cable'' carriers, mobile 
wireless carriers (both terrestrial and satellite-based), fixed 
wireless providers, and others. We believe that only by casting our net 
wide enough to include all such entities can we discern progress, or 
the lack of it, in meeting the goals stated in the Advanced 
Telecommunications Report. We also tentatively conclude, that any 
entity that provides at least 1,000 full broadband service lines (or 
wireless channels), or has at least 1,000 full broadband subscribers, 
should be required to complete all relevant parts of the survey, 
regardless of whether that entity meets the criterion for reporting 
local competition data (i.e., at least 50,000 nationwide local access 
lines or telephony subscribers). Therefore, it is possible, for 
example, that a LEC with fewer than 50,000 local access lines in 
service could have 1,000 or more full broadband lines in service, in 
which case that LEC would complete both the sections of the survey 
related to broadband services and the sections concerning local 
competition.
    6. Frequency of Reports: We also ask commenters to address the 
frequency with which the Commission should gather the information 
sought by this proposed program. The majority of commenters to our 
Local Competition Public Notice proceeding concluded that for the 
program to be effective, the information should be collected quarterly. 
Public Notice, 63 FR 29409, CC Docket No. 91-141, DA 98-839, 13 FCC Rcd 
9279 (May 28, 1998). We ask for comment on whether quarterly, semi-
annual or annual reporting would best serve the goals of this 
information collection program.
    7. Exempting Smaller Entities: We want to explore whether we can 
totally exempt some carriers from reporting without materially 
affecting our ability to effectively assess the development of local 
competition. Thus, we again ask commenters to address the desirability 
of the proposed threshold levels for local competition and broadband 
reporting. With regard to cable companies providing local exchange 
telephony, we seek comment on how best to measure the threshold for 
complying with our proposed reporting requirement.
    8. With respect to broadband, we tentatively conclude that we 
should establish a more comprehensive reporting requirement for 
providers of broadband services. We promised in the Advanced 
Telecommunications Report to keep a close watch on deployment of 
broadband services to rural and other insular groups. Thus, to ensure 
that we do not miss broadband deployment by smaller entities, we seek 
comment on whether our threshold of 1,000 customers will allow us to 
accurately gauge its deployment, particularly to rural America.
    9. Finally, we seek comment on whether, to reduce reporting burdens 
even further, we should allow an incumbent LEC of any size to file a 
brief letter in lieu of reporting local competition and broadband 
deployment data for states where that incumbent faces no local service 
competition and if it provides a de minimis number of broadband lines. 
We tentatively conclude that such an approach would reduce reporting 
burdens imposed on carriers without compromising our ability to get 
necessary information.
    10. Definition of Reporting Area: To minimize the burden the 
reporting requirement places on reporting entities, we tentatively 
conclude that information should be reported by state. The Commission 
recognizes that collecting information about competitive activity and 
broadband services deployment in smaller geographic areas might yield 
sharper pictures of the extent and intensity of these developments. At 
the same time, we recognize that companies may regard such information 
as confidential, and we seek comment on whether a requirement that they 
disclose such information is appropriate to the extent such 
confidentiality concerns exist. Therefore, we seek comment on whether a 
level more narrowly defined than state level would be appropriate.
    11. Confidentiality of Data: We think it extremely important that 
all local competition and broadband information collected pursuant to 
the proposed survey be made available to the public. Public 
availability will assist Commission staff in interpreting and utilizing 
such data, and it will facilitate Commission publication of data and 
analysis in Commission reports. Notwithstanding our belief that 
submitted information will not ordinarily raise legitimate protection 
issues, we cannot prevent parties submitting data from asserting 
confidentiality or other claims and seeking protection from public 
release. We, of course, expect such parties to follow Commission rules 
and guidelines when seeking protection pursuant, primarily, to relevant 
sections of the Freedom of Information Act. We seek comment on our 
tentative conclusions regarding the confidentiality of the type of 
information to be gathered.
    12. Electronic Filing: Because we seek to ensure that the filing 
requirement does not impose undue burdens on those entities that must 
complete the form and to allow the staff of the Commission to more 
efficiently analyze the data, we tentatively conclude that data should 
be submitted in spreadsheet form, utilizing Excel format. Additionally, 
we propose that filers make their submissions to an e-mail address over 
the Internet. We ask commenters about the desirability of such an e-
mail/spreadsheet-based electronic filing system, as well as other 
electronic filing systems.
    13. Survey Modification and Termination: We expect the local 
services and broadband services markets will become increasingly 
dynamic as competition develops. Therefore, it may be necessary to make 
changes to the form, content, or reporting obligations of this 
information collection to ensure its continuing value, while minimizing 
filing burdens on respondents. Finally, to ensure that the program does 
not outlive its usefulness, we ask commenters whether it would be best 
to ``sunset'' this program, or perhaps to require a regular review 
process.
    14. Data to be Reported: We describe and seek comment on, in the 
NPRM, the specific items set out in the proposed data collection form. 
A brief description of the proposed data collection form follows, with 
greater detail found in the complete NPRM.
    15. Section I of the survey collects information about: (1) The 
number of voice grade and equivalent wireline or fixed wireless lines/
channels in service that connect residential and, separately, non-
residential end users to the public switched telephone network (for 
convenience, ``voice grade lines''); and (2) the extent to which LECs 
use their own facilities, and the facilities or services of other LECs, 
in providing these lines.
    16. Section II of the survey collects information about numbers of 
voice grade lines served from LEC switching centers, as defined in 
Attachment A of the NPRM, in which local service competitors have 
operational collocation arrangements.
    17. Section III of the survey collects information from LECs about 
the number of high capacity lines or channels in service connecting end 
users to the public switched network (for convenience, ``high-capacity 
lines'').

[[Page 59722]]

High capacity lines are defined as lines with information carrying 
capacity capability to the customer's premises in excess of 200 Kbps in 
at least one direction, and at least 48 Kbps (i.e., voice grade) in the 
other direction.
    18. Providers of mobile telephony services (including mobile 
telephony affiliates of LECs) would not report data in sections I, II 
or III, but would instead report data on number of subscribers to voice 
grade mobile telephony service in section VI.
    19. Sections IV and V of the survey collect information about the 
number of broadband lines in service to consumers. This includes 
information about both ``full broadband'' lines, with information 
carrying capacity in excess of 200 Kbps in both directions, 
simultaneously, and asymmetric ``one way broadband'' lines, with 
information carrying capacity in excess of 200 Kbps in one direction 
but not both. Section IV collects information about broadband lines in 
service to all customers, and section V collects information about 
broadband lines in service to residential customers. From the total and 
residential information, we will be able to derive information about 
broadband deployment to all other customers, such as business, 
government, and institutional customers.
    20. The Notice seeks comment on whether answers to the survey 
questions are necessary and sufficient to describe and understand the 
state of local competition and deployment of broadband services in 
diverse areas of the nation.

Procedural Matters

A. Initial Paperwork Reduction Act of 1995 Analysis

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

B. Initial Regulatory Flexibility Act

    22. As required by the Regulatory Flexibility Act (RFA), the 
Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) of the possible significant economic impact on small entities of 
the policies and rules proposed in the NPRM. A copy of the IRFA is 
attached to this summary. Written public comments are requested with 
respect to the IRFA. These comments must be filed in accordance with 
the same filing deadlines for comments on the rest of the NPRM and they 
must have a separate and distinct heading, designating the comments as 
responses to the IRFA. The Office of Public Affairs, Reference 
Operations Division, will send a copy of the NPRM, including the IRFA, 
to the Chief Counsel for Advocacy of the Small Business Administration.
    23. This proceeding will be treated as a ``permit-but-disclose'' 
proceedings subject to the ``permit-but-disclose'' requirements under 
Sec. 1.1206 of the Commission's rules, as revised. Additional rules 
pertaining to oral and written presentations are set forth in 
Sec. 1.1206.

C. Notice and Comment Provisions

    24. General. Pursuant to Secs. 1.415 and 1.419 of the Commission's 
rules, 47 CFR 1.415, 1.419, interested parties may file comments on or 
before December 3, 1999, and reply comments on or before Decemeber 20, 
1999. Comments may be filed using the Commission's Electronic Comment 
Filing System (ECFS) or by filing paper copies.
    25. 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.
    26. Parties who choose to file by paper must file an original and 
four copies of each filing. If more than one docket or rulemaking 
number appear in the caption of this proceeding, commenters must submit 
two additional copies for each additional docket or rulemaking number. 
All filings must be sent to the Commission's Secretary, Magalie Roman 
Salas, Office of the Secretary, Federal Communications Commission, 445 
12th St. SW, Washington, DC 20554, with a copy to: Ms. Terry Conway, 
Common Carrier Bureau, Industry Analysis Division, 445 12th St. SW, 
Room 6A-100, Washington, DC 20554. Written comments by the public on 
the proposed information collection are due on or before December 3, 
1999. Written comments must be submitted by the Office of Management 
and Budget (OMB) on the proposed information collection on or before 
January 3, 2000. In addition to filing comments with the Secretary, a 
copy of any comments on the information collection contained herein 
should be submitted to Judy Boley, Federal Communications Commission, 
Room 1-C804, 445 12th Street, SW, Washington, DC 20554, or via the 
Internet to [email protected] and to Virginia Huth, OMB Desk Officer, 
10236 NEOB, 725--17th Street, NW, Washington, DC 20503 or via the 
Internet to VH[email protected].
    27. Parties who choose to file by paper should also submit their 
comments on diskette. These diskettes should be submitted to: Ms. Terry 
Conway, Common Carrier Bureau, Industry Analysis Division, 445 12th St. 
SW, Room 6A-100, Washington, DC 20554. Such a submission should be on a 
3.5 inch diskette formatted in an IBM compatible format using 
WordPerfect 5.1 for Windows or compatible software. The diskette should 
be accompanied by a cover letter and should be submitted in ``read 
only'' mode. The diskette should be clearly labelled with the 
commenter's name, proceeding (CC Docket No. 99-301), type of pleading 
(comment or reply comment), date of submission, and the name of the 
electronic file on the diskette. The label should also include the 
following phrase ``Disk Copy--Not an Original.'' Each diskette should 
contain only one party's pleading, preferably in a single electronic 
file. In addition, commenters must send diskette copies to the 
Commission's copy contractor, International Transcription Service,

[[Page 59723]]

Inc., 1231 20th Street, NW, Washington, DC 20037.

Initial Regulatory Flexibility Act Analysis

    28. As required by the Regulatory Flexibility Act (RFA), the 
Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) of any possible significant economic impact on small entities by 
the policies and rules proposed in the Notice. Written public comments 
are requested on the IRFA. Comments must be identified as responses to 
the IRFA and must be filed by the deadlines for comments on the Notice, 
which are set out in paragraph 91 of the Notice. The Commission will 
send a copy of the Notice, including the IRFA, to the Chief Counsel for 
Advocacy of the Small Business Administration. In addition, the Notice 
and IRFA (or summaries thereof) will be published in the Federal 
Register.

I. Need for, and Objectives of, the Proposed Action

    29. The Commission has initiated this proceeding to determine 
whether it should require certain providers of communications services 
to report a limited amount of information about the development of 
local telephone competition and the deployment of broadband services as 
mandated by the Telecommunications Act of 1996. The 1996 Act--in 
particular, sections 251 and 271--tasked this Commission and the states 
with important roles in opening up local telephone markets to 
competition. The Commission needs timely and reliable information about 
the pace and extent of developing competition in different geographic 
markets in order to evaluate the effectiveness of the actions this 
Commission and the states are taking to promote local telephone 
competition. Moreover, the Commission tentatively concluded that 
gathering broadband deployment information is critical given that 
section 706 of the 1996 Act requires the Commission to issue periodic 
reports on the state of broadband deployment.

II. Legal Basis

    30. The legal basis for the action as proposed for this rulemaking 
is contained in sections 1-5, 10, 11, 201-205, 215, 218-220, 251-271, 
303(r), 332, and 403 of the Communications Act of 1934, as amended, 47 
U.S.C. 151-155, 160, 161, 201-205, 215, 218-220, 251-271, 303(r), 332 
and 403, and pursuant to section 706 of the Telecommunications Act of 
1996, 47 U.S.C. 157 nt.

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

    31. The Commission tentatively concludes that local exchange 
carriers and providers of mobile telephony services that serve 50,000 
or more subscribers, and any entity that provides at least 1,000 full 
broadband lines, should comply with the proposed reporting requirement. 
Based on data available to it at present, the Commission estimates that 
fewer than 50 of the nation's largest local exchange carriers and 
between 40 and 70 mobile telephony providers would be required to 
comply with the proposed requirement. Nevertheless, and out of an 
abundance of caution, we set out below a detailed description of the 
types of entities that could possibly be required to comply with the 
proposed reporting requirement and we detail our understanding of the 
number of small entities within each of these categories.
    32. To estimate the number of small entities that may be affected 
by the proposed rules, 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.'' 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. 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). 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. 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.
    33. The most reliable source of information regarding the total 
numbers of 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). According to data in the most recent report, there are 
3,604 interstate carriers. 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.
    34. We have included small incumbent LECs in the present RFA 
analysis. As noted above, a ``small business'' under the RFA is one 
that, inter alia, meets the pertinent small business size standard 
(e.g., a telephone communications business having 1,500 or fewer 
employees), and ``is not dominant in its field of operation.'' The 
SBA's Office of Advocacy contends that, for RFA purposes, small 
incumbent LECs are not dominant in their field of operation because any 
such dominance is not ``national'' in scope. We have therefore included 
small incumbent LECs in the RFA analysis, although we emphasize that 
the RFA action has no effect on FCC analyses and determinations in 
other, non-RFA contexts.
    35. 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. 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.'' For example, a PCS provider that is affiliated with an 
interexchange carrier having more than 1,500 employees would not meet 
the definition of a small business. It seems reasonable to conclude, 
therefore, that fewer than 3,497 telephone service firms are small 
entity telephone service firms or small incumbent LECs that may be 
affected by the decisions and rules proposed in the Notice.
    36. 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

[[Page 59724]]

such telephone companies in operation for at least one year at the end 
of 1992. According to SBA's definition, a small business telephone 
company other than a radiotelephone company is one employing no more 
than 1,500 persons. 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 
rules proposed in the Notice.
    37. 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. 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). According 
to our most recent data, there are 1,410 LECs, 151 IXCs, 129 CAPs, 32 
OSPs, and 351 resellers. 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 rules proposed in the Notice.
    38. 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. According to SBA's 
definition, a small business radiotelephone company is one employing no 
more than 1,500 persons. 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 are 
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 rules proposed in the Notice.
    39. 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. We will 
utilize the closest applicable definition under SBA rules--which, for 
both categories, is for telephone companies other than radiotelephone 
(wireless) companies, however, 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. 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 in 
paragraphs 40-52, 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 rules proposed in the Notice.
    40. Broadband PCS Licensees. The broadband PCS spectrum is divided 
into six frequency blocks designated A through F, and the Commission 
has held auctions for each block. The Commission defined ``small 
entity'' for Blocks C and F as an entity that has average gross 
revenues of less than $40 million in the three previous calendar years. 
For Block F, an additional classification for ``very small business'' 
was added, and is defined as an entity that, together with its 
affiliates, has average gross revenues of not more than $15 million for 
the preceding three calendar years. These regulations defining ``small 
entity'' in the context of broadband PCS auctions have been approved by 
SBA. 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.
    41. 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, 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

[[Page 59725]]

held by small entities, some of which may be affected by the decisions 
and rules proposed in the Notice. 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 decisions and rules 
proposed in the Notice 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 decisions and rules proposed in the Notice.
    42. 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. 
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. 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, some of 
which may be affected by the decisions and rules proposed in the 
Notice.
    43. 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. 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 October 7, 1999, the Commission had granted 681 of the Phase II 220 
MHz licenses won at a first auction and an additional 221 Phase II 
licenses won at a second auction.
    44. Paging. The Commission has adopted a two-tier definition of 
small businesses in the context of auctioning licenses in the Common 
Carrier Paging and exclusive Private Carrier Paging services. A small 
business is 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. The SBA approved this definition for paging services on 
December 12, 1999. 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. We do not have data specifying 
the number of these carriers that meet this two-tiered definition, 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 and rules proposed in the Notice.
    45. Narrowband PCS. The Commission has auctioned nationwide and 
regional licenses for narrowband PCS. There are 11 nationwide and 30 
regional licensees for narrowband PCS. The Commission does not have 
sufficient information to determine whether any of these licensees are 
small businesses within the SBA-approved definition for radiotelephone 
companies. At present, there have been no auctions held for the major 
trading area (MTA) and basic trading area (BTA) narrowband PCS 
licenses. The Commission anticipates a total of 561 MTA licenses and 
2,958 BTA licenses will be awarded by auction. Such auctions have not 
yet been scheduled, however. Given that nearly all radiotelephone 
companies have no more than 1,500 employees and that no reliable 
estimate of the number of prospective MTA and BTA narrowband licensees 
can be made, we assume, for purposes of this IRFA, that all of the 
licenses will be awarded to small entities, as that term is defined by 
the SBA.
    46. Rural Radiotelephone Service. The Commission has not adopted a 
definition of small entity specific to the Rural Radiotelephone 
Service. A significant subset of the Rural Radiotelephone Service is 
the Basic Exchange Telephone Radio Systems (BETRS). We will use the 
SBA's definition applicable to radiotelephone companies, i.e., an 
entity employing no more than 1,500 persons. 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.
    47. Air-Ground Radiotelephone Service. The Commission has not 
adopted a definition of small entity specific to the Air-Ground 
Radiotelephone Service. Accordingly, we will use the SBA's definition 
applicable to radiotelephone companies, i.e., an entity employing no 
more than 1,500 persons. 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.
    48. Private Land Mobile Radio (PLMR). PLMR systems serve an 
essential role in a range of industrial, business, land transportation, 
and public safety activities. 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

[[Page 59726]]

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, if any, small businesses that could be impacted by the 
proposed rules. However, the Commission's 1994 Annual Report on PLMRs 
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. We note, 
however, that because the vast majority of these licensees are end-
users, not providers of telephony or broadband services, they would not 
be directly affected by the rules proposed in this Notice.
    49. Fixed Microwave Services. Microwave services include common 
carrier, private-operational fixed, and broadcast auxiliary radio 
services. 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. 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.
    50. 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. 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.
    51. 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 Notice includes these eight 
entities.
    52. Satellite Services. The Commission has not developed a 
definition of small entities applicable to satellite service licensees. 
Therefore, the applicable definition of small entity is generally 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 $11.0 million or less in annual 
receipts. According to the Census Bureau, there were a total of 848 
communications services providers, NEC, in operation in 1992, and a 
total of 775 had annual receipts of less than $9.999 million. The 
Census report does not provide more precise data.
    53. In addition to the estimates provided in paragraphs 40-52, we 
consider certain additional entities that may be affected by the data 
collection from broadband service providers. Because section 706 
requires us to monitor the deployment of broadband regardless of 
technology or transmission media employed, we anticipate that some 
broadband service providers will not provide telephone service. 
Accordingly, we describe in paragraphs 54-61 other types of firms that 
may provide broadband services, including cable companies, MDS 
providers, and utilities, among others.
    54. Cable Services or Systems: The SBA has developed a definition 
of small entities for cable and other pay television services, which 
includes all such companies generating $11 million or less in revenue 
annually. This definition includes cable systems operators, closed 
circuit television services, direct broadcast satellite services, 
multipoint distribution systems, satellite master antenna systems and 
subscription television services. According to the Census Bureau data 
from 1992, there were 1,788 total cable and other pay television 
services and 1,423 had less than $11 million in revenue.
    55. The Commission has developed its own definition of a small 
cable system operator for the purposes of rate regulation. Under the 
Commission's rules, a ``small cable company'' is one serving fewer than 
400,000 subscribers nationwide. Based on our most recent information, 
we estimate that there were 1,439 cable operators that qualified as 
small cable system operators at the end of 1995. Since then, some of 
those companies may have grown to serve over 400,000 subscribers, and 
others may have been involved in transactions that caused them to be 
combined with other cable operators. Consequently, we estimate that 
there are fewer than 1,439 small entity cable system operators.
    56. The Communications Act also contains a definition of a small 
cable system operator, which is ``a cable operator that, directly or 
through an affiliate, serves in the aggregate fewer than 1 percent of 
all subscribers in the United States and is not affiliated with any 
entity or entities whose gross annual revenues in the aggregate exceed 
$250,000,000.'' The Commission has determined that there are 66,000,000 
subscribers in the United States. Therefore, we found that an operator 
serving fewer than 660,000 subscribers shall be deemed a small 
operator, if its annual revenues, when combined with the total annual 
revenues of all of its affiliates, do not exceed $250 million in the 
aggregate. Based on available data, we find that the number of cable 
operators serving 660,000 subscribers or less totals 1,450. We do not 
request nor do we collect information concerning whether cable system 
operators are affiliated with entities whose gross annual revenues 
exceed $250,000,000, and thus are unable at this time to estimate with 
greater precision the number of cable system operators that would 
qualify as small cable operators under the definition in the 
Communications Act. It should be further noted that recent industry 
estimates project that there will be a total of 66,000,000 subscribers, 
and we have based our fee revenue estimates on that figure.
    57. 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. 
This definition of a small entity in the context of MDS auctions has 
been approved by the SBA. 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.
    58. 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. This 
definition includes multipoint

[[Page 59727]]

distribution systems, and thus applies to MDS licensees and wireless 
cable operators which 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 Notice.
    59. Electric Services (SIC 4911): The SBA has developed a 
definition for small electric utility firms. The Census Bureau reports 
that a total of 1379 electric utilities were in operation for at least 
one year at the end of 1992. According to SBA, a small electric utility 
is an entity whose gross revenues did not exceed five million dollars 
in 1992. The Census Bureau reports that 447 of the 1379 firms listed 
had total revenues below five million dollars.
    60. Electric and Other Services Combined (SIC 4931): The SBA has 
classified this entity as a utility whose business is less than 95% 
electric in combination with some other type of service. The Census 
Bureau reports that a total of 135 such firms were in operation for at 
least one year at the end of 1992. The SBA's definition of a small 
electric and other services combined utility is a firm whose gross 
revenues did not exceed five million dollars in 1992. The Census Bureau 
reported that 45 of the 135 firms listed had total revenues below five 
million dollars.
    61. Combination Utilities, Not Elsewhere Classified (SIC 4939): The 
SBA defines this utility as providing a combination of electric, gas, 
and other services which are not otherwise classified. The Census 
Bureau reports that a total of 79 such utilities were in operation for 
at least one year at the end of 1992. According to SBA's definition, a 
small combination utility is a firm whose gross revenues did not exceed 
five million dollars in 1992. The Census Bureau reported that 63 of the 
79 firms listed had total revenues below five million dollars.

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

    62. The very focus of this proceeding is whether the Commission 
should require certain providers of communications services to report a 
limited amount of information about the development of local telephone 
competition and the deployment of broadband services. The Notice 
tentatively concludes that the Commission should undertake such a data 
collection and that local exchange carriers and providers of mobile 
telephony services that serve 50,000 or more subscribers, and any 
entity that provides at least 1,000 full broadband lines, should report 
specifically targeted information. The Notice sets out in detail, and 
seeks comment on, the Commission's tentative conclusions about the 
types of carriers that should report, exempting smaller carriers, 
frequency of reports, data to be reported, and methods (such as 
electronic filing) of reporting. In particular, the Commission has 
tentatively concluded that given the comprehensive data to be obtained 
from large and medium-size carriers, it can exempt most small carriers 
from completing the survey without materially affecting its ability to 
assess the development of local competition and the deployment of 
broadband services.

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

    63. The Commission makes specific provision to exempt most smaller 
carriers from the proposed requirement to report local telephone 
competition data. The Commission tentatively concludes that carriers 
with fewer than 50,000 nationwide local access lines (or mobile 
telephony subscribers, in the case of mobile telephony providers) 
should be exempted from the proposed reporting requirement. Based on 
this exemption, the Commission estimates that fewer than 50 of the 
nation's largest service providers would remain subject to the proposed 
requirement. The Commission provides a detailed explanation for this 
proposed exemption and seeks comment on the 50,000 local access line 
threshold in the Notice.
    64. With respect to broadband service, and irrespective of the 
criteria for reporting local competition data, the Commission 
tentatively concludes that entities that provide full broadband 
services to at least 1,000 customers should report. The Commission 
tentatively concludes that this more comprehensive reporting 
requirement is necessary to monitor broadband developments by smaller 
entities, for example, in rural areas. The Commission seeks comment on 
this proposed threshold and invites commenters to suggest alternative 
thresholds.
    65. Among significant alternatives, the Commission considers 
whether it might rely on publicly available data or voluntary surveys, 
in lieu of a mandatory data collection program. The Commission 
tentatively concludes other publicly available information sources 
present less than complete pictures of actual conditions and trends in 
developing local service markets and in the deployment of broadband. 
Further, the Commission considers the need for, and size of, its 
proposed exemptions for small entities. The Commission tentatively 
concludes that the proposed thresholds will allow it exempt most small 
entities from completing the survey without materially affecting its 
ability to assess the development of local competition and the 
deployment of broadband services.

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

    66. None.

Ordering Clause

    67. Accordingly, it is ordered that, pursuant to sections 1-5, 10, 
11, 201-205, 215, 218-220, 251-271, 303(r), 332, and 403 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151-155, 160, 161, 
201-205, 215, 218-220, 251-271, 303(r), 332, and 403, and pursuant to 
section 706 of the Telecommunications Act of 1996, 47 U.S.C. 157 nt, 
this notice of proposed rulemaking is hereby adopted.
    68. It is further ordered that the Commission's Office of Public 
Affairs, Reference Operations Division, shall send a copy of this 
notice of proposed rulemaking, including the regulatory flexibility 
certification, to the Chief Counsel for Advocacy of the Small Business 
Administration in accordance with paragraph 603(a) of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq. (1981).

List of Subjects

47 CFR Parts 1 and 43

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

47 CFR Part 20

    Communications common carriers.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 99-28792 Filed 11-1-99; 11:13 am]
BILLING CODE 6712-01-P