[Federal Register Volume 65, Number 149 (Wednesday, August 2, 2000)]
[Proposed Rules]
[Pages 47366-47370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19480]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[FCC 00-209]


Extending Wireless Telecommunications Services to Tribal Lands

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: The Federal Communications Commission is issuing a Report and 
Order contemporaneous with this document that adopts rules and policies 
to encourage the deployment of wireless services to tribal lands. In 
this document, the Commission seeks comment on additional auctions-
based incentives it could adopt to encourage the deployment of wireless 
telecommunications services to tribal and other underserved areas.

DATES: Comments are due on or before September 1, 2000. Reply comments 
are due on or before September 18, 2000.

ADDRESSES: Submit comments and reply comments to the Commission's 
Secretary, Magalie Roman Salas, Office of the Secretary, TW-A306, 
Federal Communications Commission, 445 12th Street, S.W., Washington, 
D.C. 20554.

FOR FURTHER INFORMATION CONTACT: Davida Grant, Commercial Wireless 
Division, Wireless Telecommunications Bureau, Federal Communications 
Commission, 202-418-7050, or via the Internet at [email protected]. 

SUPPLEMENTARY INFORMATION: Contemporaneous with the Further

[[Page 47367]]

Notice, the Commission is publishing a Report and Order (published 
elsewhere in this publication) which adopts initiatives to encourage 
the deployment of facilities, and ultimately service, to the most 
underserved tribal communities. We recognize, however, that there are 
other areas, both tribal and non-tribal, that have penetration levels 
above 70 percent, but significantly below the nationwide average. In 
the Further Notice, we seek comment on other possible uses of bidding 
credits to encourage deployment of wireless services to tribal 
communities and other areas. Specifically, we seek comment on whether 
to: (1) Award bidding credits to entities that commit to serve non-
tribal areas and/or tribal areas with penetration levels above 70 
percent, but significantly below the national penetration average; (2) 
expand the bidding credit program by awarding credits for use in future 
auctions to licensees in already-established wireless services who 
deploy facilities to unserved tribal communities; and (3) make credits 
available to licensees that enter into partitioning agreements with 
tribal authorities that allow the tribal government to provide service, 
either directly or through negotiation with a third-party carrier.

ELECTRONIC AND PAPER FILING: Comments and reply comments may be filed 
with the FCC using the Commission's Electronic Comment Filing System 
(``ECFS'') or by filing paper copies. See Electronic Filing of 
Documents in Rulemaking Proceedings, 63 Fed. Reg. 24,121 (1998). 
Parties may also submit an electronic comment by Internet e-mail. 
Parties who choose to file by paper must file an original and four 
copies of each filing. If you want each Commissioner to receive a copy 
of your comments, you must file an original plus eleven copies. All 
filings must be sent to the Commission's Secretary, Magalie Roman 
Salas, Office of the Secretary, TW-A306, Federal Communications 
Commission, 445 12th Street, SW., Washington, DC 20554.
    Parties who choose to file by paper should also submit their 
comments on diskette. A 3.5-inch diskette formatted in an IBM 
compatible format using Microsoft Word for Windows or compatible 
software Diskettes should be submitted to: Davida Grant, Federal 
Communications Commission, Wireless Telecommunications Bureau, 445 12th 
Street, SW., Room 4-C241, Washington, DC 20554. The diskette should be 
accompanied by a cover letter and should be submitted in ``read only'' 
mode. The diskette should be clearly labeled with the commenter's name, 
proceeding (including the docket number in this case--WT Docket No. 99-
266), type of pleading (comments or reply comments), date of 
submission, and the name of the electronic file on the diskette. The 
label also should include the following phrase, ``Disk Copy--Not an 
Original.'' Each diskette should contain only one party's pleadings, 
preferably in a single electronic file. In addition, commenters must 
send diskette copies to the Commission's copy contractor, International 
Transcription Service, Inc., 1231 20th Street, N.W., Washington, D.C. 
20036.

INITIAL REGULATORY FLEXIBILITY ANALYSIS: 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 
the Further Notice of Proposed Rulemaking (Further Notice).\2\ Written 
public comments are requested on this IRFA. These comments must be 
filed in accordance with the filing deadlines for comments on the rest 
of the Further Notice, provided in Section V.D, and they must have a 
separate and distinct heading designating them as responses to the 
IRFA. The Commission will send a copy of the Further Notice, including 
the IRFA, to the Chief Counsel for Advocacy of the Small Business 
Administration, in accordance with the RFA.\3\ In addition, the Further 
Notice and IRFA (or summaries thereof) will be published in the Federal 
Register.\4\
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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\ Extending Wireless Telecommunications Services to Tribal 
Lands, Further Notice of Proposed Rulemaking, WT Docket No. 99-266, 
FCC 00-209 (adopted June 8, 2000).
    \3\ See 5 U.S.C. 603(a).
    \4\ See id..
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A. Need for, and Objectives of, the Proposed Rules

    The initiatives we adopt in the Report and Order should facilitate 
the deployment of facilities, and ultimately service, to the most 
underserved tribal communities. We recognize however, that there are 
other areas, both tribal and non-tribal, that have penetration levels 
above 70 percent, but still significantly below the nationwide average 
of 94 percent. It is our goal to ensure that all Americans have access 
to telecommunications service. In the Further Notice, we seek comment 
on other possible uses of bidding credits to encourage deployment of 
wireless facilities, and ultimately service, to these areas.

B. Legal Basis

    We have authority under Sections 4(i), 303(r), 309(j) and 706 of 
the Communications Act of 1934, as amended, 47 U.S.C. sections 154(i), 
303(r), 309(j) and 706, to adopt the proposals set forth in the Further 
Notice.

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

    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.\5\ The RFA generally 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \6\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\7\ A small business concern is one that: 
(1) Is independently owned and operated; (2) is not dominant in its 
field of operation; and (3) satisfies any additional criteria 
established by the Small Business Administration (SBA).\8\
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    \5\ 5 U.S.C. 603(b)(3).
    \6\ Id. at 601(6).
    \7\ 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. section 601(3).
    \8\ Small Business Act, 15 U.S.C. 632.
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    A small organization is generally ``any not-for-profit enterprise 
which is independently owned and operated and is not dominant in its 
field.'' \9\ Nationwide, as of 1992, there were approximately 275,801 
small organizations.\10\ 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.'' \11\ As of 1992, there were 
approximately 85,006 such jurisdictions in the United

[[Page 47368]]

States.\12\ This number includes 38,978 counties, cities, and towns; of 
these, 37,566, or 96 percent, have populations of fewer than 
50,000.\13\ 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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    \9\ 5 U.S.C. 601(4).
    \10\ 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).
    \11\ 5 U.S.C. 601(5).
    \12\ 12 U.S. Dept. of Commerce, Bureau of the Census, ``1992 
Census of Governments.''
    \13\ Id.
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    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.\14\ According to SBA's definition, a small business 
radiotelephone company is one employing no more than 1,500 persons.\15\ 
The Census Bureau also reported that 1,164 of those radiotelephone 
companies had fewer than 1,000 employees. Thus, even if all of the 
remaining 12 companies had more than 1,500 employees, there would still 
be 1,164 radiotelephone companies that might qualify as small entities 
if they are independently owned and operated. Although it seems certain 
that some of these carriers are not independently owned and operated, 
we are unable at this time to estimate with greater precision the 
number of radiotelephone carriers and service providers that would 
qualify as small business concerns under SBA's definition. 
Consequently, we estimate that there are fewer than 1,164 small entity 
radiotelephone companies that may be affected by the policies and rules 
proposed in this Further Notice.
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    \14\ 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'').
    \15\ 13 CFR 121.201, SIC Code 4812.
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    We further describe and estimate the number of wireless small 
business concerns that may be affected by the rules we propose in the 
Further Notice.
    Cellular Providers. Neither the Commission nor the SBA has 
developed a definition of small entities applicable to cellular 
licensees. Therefore, the applicable definition of small entity is the 
definition under the SBA rules applicable to radiotelephone (wireless) 
companies. This provides that a small entity is a radiotelephone 
company employing no more than 1,500 persons.\16\ According to the 
Bureau of the Census, only twelve radiotelephone firms from a total of 
1,178 such firms which operated during 1992 had 1,000 or more 
employees.\17\ Therefore, even if all twelve of these firms were 
cellular telephone companies, nearly all cellular carriers were small 
businesses under the SBA's definition. In addition, we note that there 
are 1,758 cellular licenses; however, a cellular licensee may own 
several licenses. In addition, according to the most recent 
Telecommunications Industry Revenue data, 808 carriers reported that 
they were engaged in the provision of either cellular service or 
Personal Communications Service (PCS) services, which are placed 
together in the data.\18\ We do not have data specifying the number of 
these carriers that are not independently owned and operated or have 
more than 1,500 employees, and thus are unable at this time to estimate 
with greater precision the number of cellular service carriers that 
would qualify as small business concerns under the SBA's definition. 
Consequently, we estimate that there are fewer than 808 small cellular 
service carriers that may be affected by the rules adopted herein.
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    \16\ 13 CFR 121.201, SIC code 4812.
    \17\ 1992 Census, Series UC92-S-1, at Table 5, SIC code 4812.
    \18\ Trends in Telephone Service, Table 19.3 (March 2000).
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    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.\19\ For Block F, 
an additional classification for ``very small business'' was added and 
is defined as an entity that, together with their affiliates, has 
average gross revenues of not more than $15 million for the preceding 
three calendar years.\20\ These regulations defining ``small entity'' 
in the context of broadband PCS auctions have been approved by the 
SBA.\21\ 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.\22\ Based on this 
information, we conclude that the number of small broadband PCS 
licensees 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 
entity PCS providers as defined by the SBA and the Commission's auction 
rules.
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    \19\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, FCC 96-278, WT Docket 
No. 96-59, paras. 57-60 (released Jun. 24, 1996), 61 FR 33859 (Jul. 
1, 1996); see also 47 CFR 24.720(b).
    \20\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, FCC 96-278, WT Docket 
No. 96-59, para. 60 (1996), 61 FR 33859 (Jul. 1, 1996).
    \21\ 21 See, e.g., Implementation of Section 309(j) of the 
Communications Act--Competitive Bidding, PP Docket No. 93-253, Fifth 
Report and Order, 9 FCC Rcd 5532, 5581-84 (1994).
    \22\ FCC News, Broadband PCS, D, E and F Block Auction Closes, 
No. 71744 (released Jan. 14, 1997).
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    SMR Licensees. The Commission awards bidding credits in auctions 
for geographic area 800 MHz and 900 MHz SMR licenses to firms that had 
revenues of no more than $15 million in each of the three previous 
calendar years.\23\ In the context of 900 MHz SMR, this regulation 
defining ``small entity'' has been approved by the SBA; approval 
concerning 800 MHz SMR is being sought. 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 no more than $15 million. One firm has over $15 
million in revenues. We assume, for purposes of this IRFA, that all of 
the remaining existing extended implementation authorizations are held 
by small entities, as that term is defined by the SBA. For geographic 
area licenses in the 900 MHz SMR band, there are 60 who qualified as 
small entities. For the 800 MHz SMR's, 38 are small or very small 
entities.
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    \23\ 47 CFR 90.814(b)(1).
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    220 MHz Radio Service--Phase I Licensees. The 220 MHz service has 
both Phase I and Phase II licenses. Phase I licensing was conducted by 
lotteries in 1992 and 1993. 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. This definition 
provides that a small entity is a radiotelephone company employing no 
more than 1,500 persons.\24\ 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

[[Page 47369]]

employees.\25\ Therefore, if this general ratio continues in 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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    \24\ 13 CFR 121.201, Standard Industrial Classification (SIC) 
code 4812.
    \25\ 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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    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.\26\ 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.\27\ The SBA has approved these definitions.\28\ 
An auction of Phase II licenses commenced on September 15, 1998, and 
closed on October 22, 1998.\29\ Nine hundred and eight (908) licenses 
were auctioned in 3 different-sized geographic areas: three nationwide 
licenses, 30 Regional Economic Area Group Licenses, and 875 Economic 
Area (EA) Licenses. Of the 908 licenses auctioned, 693 were sold. 
Companies claiming small business status won: one of the Nationwide 
licenses, 67% of the Regional licenses, and 54% of the EA licenses. As 
of January 22, 1999, the Commission announced that it was prepared to 
grant 654 of the Phase II licenses won at auction.\30\
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    \26\ 220 MHz Third Report and Order, 12 FCC Rcd 10943, 11068-70, 
at paras. 291-295 (1997).
    \27\ 220 MHz Third Report and Order, 12 FCC Rcd at 11068-69, 
para. 291.
    \28\ See Letter from A. Alvarez, Administrator, SBA, to D. 
Phythyon, Chief, Wireless Telecommunications Bureau, FCC (Jan. 6, 
1998).
    \29\ See generally Public Notice, ``220 MHz Service Auction 
Closes,'' Report No. WT 98-36 (Wireless Telecom. Bur. Oct. 23, 
1998).
    \30\ 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).
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    Paging Licensees. 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 will be defined as either: (1) An entity that, together with 
its affiliates and controlling principals, has average gross revenues 
for the three preceding years of not more than $3 million, or (2) an 
entity that, together with affiliates and controlling principals, has 
average gross revenues for the three preceding calendar years of not 
more than $15 million. Because the SBA has not yet approved this 
definition for paging services, we will utilize the SBA's definition 
applicable to radiotelephone companies, i.e., an entity employing no 
more than 1,500 persons.\31\ At present, there are approximately 24,000 
Private Paging licenses and 74,000 Common Carrier Paging licenses. 
According to the most recent Telecommunications Industry Revenue data, 
172 carriers reported that they were engaged in the provision of either 
paging or ``other mobile'' services, which are placed together in the 
data.\32\ We do not have data specifying the number of these carriers 
that are not independently owned and operated or have more than 1,500 
employees, and thus are unable at this time to estimate with greater 
precision the number of paging carriers that would qualify as small 
business concerns under the SBA's definition. Consequently, we estimate 
that there are fewer than 172 small paging carriers that may be 
affected by the rules adopted herein. We estimate that the majority of 
private and common carrier paging providers would qualify as small 
entities under the SBA definition.
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    \31\ 13 CFR 121.201, SIC code 4812.
    \32\ Trends in Telephone Service, Table 19.3 (February 19, 
1999).
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    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. Given that nearly all radiotelephone companies have no more 
than 1,500 employees and that no reliable estimate of the number of 
prospective 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.
    Rural Radiotelephone Service. The Commission has not adopted a 
definition of small entity specific to the Rural Radiotelephone 
Service.\33\ A significant subset of the Rural Radiotelephone Service 
is the Basic Exchange Telephone Radio Systems (BETRS).\34\ We will use 
the SBA's definition applicable to radiotelephone companies, i.e., an 
entity employing no more than 1,500 persons.\35\ 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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    \33\ The service is defined in section 22.99 of the Commission's 
Rules, 47 CFR 22.99.
    \34\ BETRS is defined in sections 22.757 and 22.759 of the 
Commission's Rules, 47 CFR 22.757 and 22.759.
    \35\ 13 CFR 121.201, SIC code 4812.
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    Air-Ground Radiotelephone Service. The Commission has not adopted a 
definition of small entity specific to the Air-Ground Radiotelephone 
Service.\36\ Accordingly, we will use the SBA's definition applicable 
to radiotelephone companies, i.e., an entity employing no more than 
1,500 persons.\37\ There are approximately 100 licensees in the Air-
Ground Radiotelephone Service, and we estimate that almost all of them 
qualify as small under the SBA definition.
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    \36\ The service is defined in section 22.99 of the Commission's 
Rules, 47 CFR 22.99.
    \37\ 13 CFR 121.201, SIC code 4812.
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    Fixed Microwave Services. Microwave services include common 
carrier,\38\ private-operational fixed,\39\ and broadcast auxiliary 
radio services.\40\ At present, there are approximately 22,015 common 
carrier fixed licensees and 61,670 private operational-fixed licensees 
and broadcast auxiliary radio 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.\41\ We estimate, for this 
purpose, that all of the Fixed Microwave licensees (excluding broadcast 
auxiliary licensees) would qualify as small entities under the SBA

[[Page 47370]]

definition for radiotelephone companies.
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    \38\ 47 CFR 101 et seq. (formerly, part 21 of the Commission's 
Rules).
    \39\ 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.
    \40\ Auxiliary Microwave Service is governed by part 74 of Title 
47 of the Commission's Rules. See 47 CFR 74 et seq. Available to 
licensees of broadcast stations and to broadcast and cable network 
entities, broadcast auxiliary microwave stations are used for 
relaying broadcast television signals from the studio to the 
transmitter, or between two points such as a main studio and an 
auxiliary studio. The service also includes mobile TV pickups, which 
relay signals from a remote location back to the studio.
    \41\ 13 CFR 121.201, SIC 4812.
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    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.\42\ 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 under the SBA's definition for radiotelephone 
communications.
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    \42\ This service is governed by subpart I of part 22 of the 
Commission's Rules. See 47 CFR 22.1001 through 22.1037.
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    Wireless Communications Services. This service can be used for 
fixed, mobile, radiolocation and digital audio broadcasting satellite 
uses. The Commission defined ``small business'' for the wireless 
communications services (WCS) auction as an entity with average gross 
revenues of $40 million for each of the three preceding years, and a 
``very small business'' as an entity with average gross revenues of $15 
million for each of the three preceding years. The Commission auctioned 
geographic area licenses in the WCS service. In the auction, there were 
seven winning bidders that qualified as very small business entities, 
and one that qualified as a small business entity. We conclude that the 
number of geographic area WCS licensees affected includes these eight 
entities.
    Multipoint Distribution Systems (MDS). This service involves a 
variety of transmitters, which are used to relay programming to the 
home or office, similar to that provided by cable television 
systems.\43\ In connection with the 1996 MDS auction, the Commission 
defined small businesses as entities that had annual average gross 
revenues for the three preceding years not in excess of $40 
million.\44\ This definition of a small entity in the context of MDS 
auctions has been approved by the SBA.\45\ These stations were licensed 
prior to implementation of Section 309(j) of the Communications Act of 
1934, as amended.\46\ Licenses for new MDS facilities are now awarded 
to auction winners in Basic Trading Areas (BTAs) and BTA-like 
areas.\47\ The MDS auctions resulted in 67 successful bidders obtaining 
licensing opportunities for 493 BTAs. Of the 67 auction winners, 61 
meet the definition of a small business. There are 2,050 MDS stations 
currently licensed. Thus, we conclude that there are 1,634 MDS 
providers that are small businesses as deemed by the SBA and the 
Commission's auction rules.
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    \43\ For purposes of this item, MDS includes both the single 
channel Multipoint Distribution Service (MDS) and the Multichannel 
Multipoint Distribution Service (MMDS).
    \44\ 47 CFR 1.2110(a)(1).
    \45\ 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, 10 
FCC Rcd 9589 (1995), 60 FR 36524 (Jul. 17, 1995).
    \46\ 47 U.S.C. 309(j).
    \47\ Id. A Basic Trading Area (BTA) is the geographic area by 
which the Multipoint Distribution Service is licensed. See Rand 
McNally 1992 Commercial Atlas and Marketing Guide, 123rd Edition, 
pp. 36-39.
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D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    The Further Notice does not propose any specific reporting, 
recordkeeping or compliance requirements. However, we seek comment on 
what, if any, such requirements we should impose if we adopt the 
proposals set forth in the Further Notice.

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

    The RFA requires an agency to describe any significant alternatives 
that it has considered in reaching its proposed approach, which may 
include the following four alternatives: (1) The establishment of 
differing compliance or reporting requirements or timetables that take 
into account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance or 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.
    The Further Notice seeks broad comment on additional uses of 
bidding credits to facilitate the provision of service to tribal and 
non-tribal areas.\48\ The Further Notice does not make specific 
implementation proposals, but rather seeks guidance from the industry 
on how to further expand our bidding policies. We tentatively conclude 
that these initiatives should not have a significant economic impact on 
small carriers. Importantly, small business many combine any additional 
tribal lands bidding credits with the small business bidding credits 
available under our existing rules. Commenters are encouraged to 
discuss the alternatives proposed in the Further Notice, and 
specifically how to minimize any significant economic impact on small 
entities.
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    \48\ See Further Notice paras. 23-25.
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F. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    None.

Ordering Clauses

    Pursuant to Sections 1, 4(i), 303(r), 309(j) and 706 of the 
Communications Act of 1934, as amended, 47 U.S.C. Secs. 151, 154(i), 
303(r), 309(j), and 706, that the Further Notice of Proposed Rulemaking 
is hereby Adopted.

List of Subjects in 47 CFR Part 1

    Telecommunications.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 00-19480 Filed 8-1-00; 8:45 am]
BILLING CODE 6712-01-U