[Federal Register Volume 65, Number 151 (Friday, August 4, 2000)]
[Proposed Rules]
[Pages 47941-47946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19612]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[CC Docket No. 96-45; FCC 00-208]


Federal-State Joint Board on Universal Service: Promoting 
Deployment and Subscribership in Unserved and Underserved Areas, 
Including Tribal and Insular Areas

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rules.

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SUMMARY: In this document, the Commission seeks comment on the adoption 
of a rule that would require resolution of the merits of any request 
for designation as an eligible telecommunications carrier under section 
214(e) of the Telecom Act, filed either with this Commission or a state 
commission, to be resolved within six months of the filing date, or 
some shorter period. We also seek comment on alternative methods by 
which state commissions, tribal authorities, and this Commission can 
work together to further facilitate the expeditious resolution of 
designation requests from carriers serving tribal lands.

DATES: Comments are due August 7, 2000 and reply comments are due 
August 28, 2000.

FOR FURTHER INFORMATION CONTACT: Gene Fullano, Attorney, Common Carrier 
Bureau, Accounting Policy Division, (202) 418-7400.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Further Notice of Proposed Rulemaking in CC Docket No. 96-45 released 
on June 30, 2000. The full text of this document is available for 
public inspection during regular business hours in the FCC Reference 
Center, Room CY-A257, 445 Twelfth Street, SW., Washington, DC, 20554.

I. Introduction

    1. In this Further Notice of Proposed Rulemaking, we seek comment 
on the adoption of a rule that would require resolution of the merits 
of any request for designation as an eligible telecommunications 
carrier under section 214(e) of the Telecom Act, filed either with this 
Commission or a state commission, to be resolved within six months of 
the filing date, or some shorter period. We also seek comment on 
alternative methods by which state commissions, tribal authorities, and 
this Commission can work together to further facilitate the expeditious 
resolution of designation requests from carriers serving tribal lands.
    2. The Commission will take action in a further proceeding to 
address the remaining issues raised in the Further Notice of Proposed 
Rulemaking (FNPRM), 64 FR 52738 (September 30, 1999), that are not 
addressed in this Further Notice of Proposed Rulemaking. In particular, 
we will continue to examine and address the causes of low 
subscribership in other areas and among other populations, especially 
among low-income individuals in rural and insular areas. In addition, 
in areas where the cost to deploy telecommunications facilities is 
significantly above the national average, we anticipate that additional 
action may be necessary to encourage such deployment. Providing 
appropriate incentives for the deployment of facilities in such 
locations will be central to the issues that we will address, in 
consultation with the Federal-State Joint Board on Universal Service 
(Joint Board) in our consideration of rules to implement section 
214(e)(3) of the Telecom Act and in considering the recommendations of 
the Joint Board for high-cost universal service reform for rural 
carriers.

II. Further Notice of Proposed Rulemaking

    3. Deadline for Resolving Section 214(e) of the Telecom Act 
Designation Requests. In this Further Notice of Proposed Rulemaking, we 
seek comment on the imposition of a time limit during which requests 
for designation as an eligible telecommunications carrier under section 
214(e) of the Telecom Act, filed either with this Commission or a state 
commission, must be resolved. As noted, we are concerned that lengthy 
delays in addressing requests for designation may hinder the 
availability of affordable telecommunications services in many high-
cost areas of the Nation. We believe it is unreasonable to expect a 
prospective entrant to enter a high-cost market and provide service in 
competition with an incumbent carrier that is receiving support, 
without knowing whether it is eligible to receive support. If new 
entrants do not have the same opportunity to receive universal service 
support as the incumbent, such carriers may be unable to provide 
service and compete with the incumbent in high-cost areas. As the 
Commission has previously concluded, competitively neutral access to 
such support is critical to ensuring that all Americans, including 
those that live in high-cost areas, have access to affordable 
telecommunications services. We believe such a result to be contrary to 
Congress' intent in adopting section 254 of the Telecom Act.
    4. We therefore seek comment on whether to adopt a rule that would 
require resolution of the merits of any request for designation under 
section 214(e) of the Telecom Act within a six-month period, or some 
shorter period. In addition, we seek comment on whether to require a 
similar time limit for the resolution of the jurisdictional issues 
associated with requests for eligibility designations on tribal lands, 
and what that time limit should be. We intend to consult with members 
of the Joint Board on this issue and invite comment from the Joint 
Board and interested parties. We also seek on comment on the 
Commission's authority to enforce any such requirement imposed on state 
commissions. For example, we seek comment on our authority under 
sections 201(b), 253, 254 of the Telecom Act, or AT&T v. Iowa Utilities 
Board to enforce any deadline imposed on resolution of requests for 
eligibility designations under section 214(e) of the Telecom Act.
    5. Alternative Frameworks for Resolving Designation Requests. In 
light of the immediate need for expeditious resolution of designation 
requests from carriers serving tribal lands, we have adopted a 
framework for resolving designation requests filed at the Commission 
under section 214(e)(6) of the Telecom Act. This framework is designed 
to streamline the process for designation of eligible 
telecommunications carriers serving tribal lands in order to expedite 
the availability of affordable telecommunications services to tribal

[[Page 47942]]

communities. We are guided, however, by our desire to work 
cooperatively with the state commissions and tribal authorities to 
consider alternative methods for facilitating the expeditious 
resolution of eligibility designation requests. We therefore seek 
comment on additional ways in which the state commissions, tribal 
authorities, and this Commission can work together toward this end. We 
look forward to collaborating further with state commissions and tribal 
leaders to consider additional measures we can take to resolve 
eligibility designation requests on tribal lands as expeditiously as 
possible.

III. Procedural Matters

A. Initial Regulatory Flexibility Analysis

    6. As required by the Regulatory Flexibility Act (RFA), the 
Commission has prepared this Initial Regulatory Flexibility Analysis 
(IRFA) of the possible significant economic impact on small entities by 
the policies and rules proposed in this Further Notice of Proposed 
Rulemaking. Written public comments are requested on this IRFA. 
Comments must be identified as responses to the IRFA and must be filed 
by the deadlines for comments on the Further Notice of Proposed 
Rulemaking provided. The Commission will send a copy of the Further 
Notice of Proposed Rulemaking, including this IRFA, to the Chief 
Counsel for Advocacy of the Small Business Administration. In addition, 
the Further Notice of Proposed Rulemaking and IRFA (or summaries 
thereof) will be published in the Federal Register.
(1) Need for and Objectives of the Proposed Rules
    7. The Commission issues the Further Notice of Proposed Rulemaking 
contained herein as a part of its implementation of the Act's mandate 
that ``[c]onsumers in all regions of the Nation * * * have access to 
telecommunications and information services * * *''. The Further Notice 
of Proposed Rulemaking seeks comment on rules setting a deadline for 
the consideration of petitions for designation of carriers as eligible 
telecommunications carriers under section 214(e) of the Telecom Act for 
the purposes of receiving universal service support under section 
254(e) of the Telecom Act. The Further Notice of Proposed Rulemaking 
also seeks comment on alternative methods for facilitating expeditious 
resolution of eligibility designation requests. Our objective is to 
fulfill section 254 of the Telecom Act's mandate that ``all regions of 
the Nation * * * have access to telecommunications'' with respect to 
tribal lands, which have the lowest reported subscribership levels for 
telecommunications in the Nation.
2. Legal Basis
    8. The legal basis as proposed for this Further Notice of Proposed 
Rulemaking is contained in section 254 of the Telecom Act.
3. Description and Estimate of the Number of Small Entities to Which 
Rules Will Apply
    9. 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. The RFA generally defines the term 
``small entity'' as having the same meaning as the terms ``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. 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). A small organization is generally ``any not-for-
profit enterprise which is independently owned and operated and is not 
dominant in its field.'' Nationwide, as of 1992, there were 
approximately 275,801 small organizations. 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.'' As of 1992, there 
were approximately 85,006 such jurisdictions in the United States. This 
number includes 38,978 counties, cities, and towns; of these, 37,566, 
or 96 percent, have populations of fewer than 50,000. 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. The new rules 
proposed in this Further Notice of Proposed Rulemaking may affect all 
providers of interstate telecommunications and interstate 
telecommunications services. We further describe and estimate the 
number of small business concerns that may be affected by the rules 
proposed in this Further Notice of Proposed Rulemaking.
    10. 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 telecommunications companies that are 
commonly used under our rules.
    11. The most reliable source of information regarding the total 
numbers of common carrier and related providers nationwide, including 
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 
4,144 interstate carriers. These carriers include, inter alia, 
incumbent local exchange carriers, competitive local exchange carriers, 
competitive access providers, interexchange carriers, other wireline 
carriers and service providers (including shared-tenant service 
providers and private carriers), operator service providers, pay 
telephone operators, providers of telephone toll service, wireless 
carriers and services providers, and resellers.
    12. We have included small incumbent LECs in this present RFA 
analysis. As noted, 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 this RFA analysis, although we emphasize that this RFA action has no 
effect on Commission analyses and determinations in other, non-RFA 
contexts.
    13. 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

[[Page 47943]]

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 rules proposed in this Further Notice of Proposed 
Rulemaking.
    14. Wireline Carriers and Service Providers. SBA has developed a 
definition of small entities for telephone communications companies 
other than radiotelephone companies. The Census Bureau reports that, 
there were 2,321 such telephone companies in operation for at least one 
year at the end of 1992. 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 rules 
proposed in this Further Notice of Proposed Rulemaking.
    15. Local Exchange Carriers, Interexchange Carriers, Competitive 
Access Providers, Operator Service Providers, and Resellers. Neither 
the Commission nor SBA has developed a definition particular to 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 1,348 incumbent LECs, 212 CAPs and 
competitive LECs, 171 IXCs, 24 OSPs, 388 toll resellers, and 54 local 
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 1,348 incumbent LECs, 212 CAPs and 
competitive LECs, 171 IXCs, 24 OSPs, 388 toll resellers, and 54 local 
resellers that may be affected by the rules proposed in this Further 
Notice of Proposed Rulemaking.
    16. 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 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 rules proposed in this Further Notice of Proposed Rulemaking.
    17. 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 proposed 
herein, we consider the data that we collect annually in connection 
with the TRS for the subcategories Wireless Telephony (which includes 
Cellular, PCS, and SMR) and Other Mobile Service Providers. Neither the 
Commission nor the SBA has developed a definition of small entities 
specifically applicable to these broad subcategories, so we will 
utilize the closest applicable definition under SBA rules--which, for 
both categories, is for telephone companies other than radiotelephone 
(wireless) companies. To the extent that the Commission has adopted 
definitions for small entities providing PCS and SMR services, we 
discuss those definitions. According to our most recent TRS data, 808 
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, that would qualify 
as small business concerns under SBA's definition. Consequently, we 
estimate that there are fewer than 808 small entity Wireless Telephony 
Providers and fewer than 23 small entity Other Mobile Service Providers 
that might be affected by the rules proposed in this Further Notice of 
Proposed Rulemaking.
    18. 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 
percent 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

[[Page 47944]]

defined by SBA and the Commissioner's auction rules.
    19. SMR Licensees. Pursuant to Sec. 90.814(b)(1) of the 
Commission's rules, 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 rules may apply to SMR providers in the 800 MHz and 900 MHz 
bands that either hold geographic area licenses or have obtained 
extended implementation authorizations. We do not know how many firms 
provide 800 MHz or 900 MHz geographic area SMR service pursuant to 
extended implementation authorizations, nor how many of these providers 
have annual revenues of less than $15 million. Consequently, we 
estimate, for purposes of this IRFA, that all of the extended 
implementation authorizations may be held by small entities, some of 
which may be affected by the decisions and rules in this Further Notice 
of Proposed Rulemaking.
    20. 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 in the 
Further Notice of Proposed Rulemaking includes these 60 small entities. 
No auctions have been held for 800 MHz geographic area SMR licenses. 
Therefore, no small entities currently hold these licenses. A total of 
525 licenses will be awarded for the upper 200 channels in the 800 MHz 
geographic area SMR auction. The Commission, however, has not yet 
determined how many licenses will be awarded for the lower 230 channels 
in the 800 MHz geographic area SMR auction. There is no basis, 
moreover, on which to estimate how many small entities will win these 
licenses. Given that nearly all radiotelephone companies have fewer 
than 1,000 employees and that no reliable estimate of the number of 
prospective 800 MHz licensees can be made, we estimate, for purposes of 
this IRFA, that all of the licenses may be awarded to small entities, 
some of which may be affected by the rules proposed in this Further 
Notice of Proposed Rulemaking.
    21. 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.
    22. 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, 62 FR 16004 (April 3, 1997), 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 percent of the Regional licenses, 
and 54 percent 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. A reauction of the remaining, unsold licenses 
was completed on June 30, 1999, with 16 bidders winning 222 of the 
Phase II licenses. As a result, we estimate that 16 or fewer of these 
final winning bidders are small or very small businesses.
    23. 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.
    24. 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.
    25. 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.
    26. 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

[[Page 47945]]

the Fixed Microwave licensees (excluding broadcast auxiliary licensees) 
would qualify as small entities under the SBA definition for 
radiotelephone companies.
    27. 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 
rules proposed in this Further Notice of Proposed Rulemaking includes 
these eight entities.
    28. 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.
    29. 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 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 rules proposed in this Further Notice of Proposed 
Rulemaking.
(4) Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements
    30. Currently, there is no deadline for the consideration of 
petitions for designation of carriers as eligible telecommunications 
carriers under section 214(e) of the Telecom Act for the purposes of 
receiving universal service support under section 254(e) of the Telecom 
Act. Under the rules proposed in the Further Notice of Proposed 
Rulemaking, state commissions and the Commission would each have a set 
time frame within which to consider such petitions before them.
(5) Steps Taken to Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered
    31. Wherever possible, the Further Notice of Proposed Rulemaking 
proposes general rules, or alternative rules to reduce the 
administrative burden and cost of compliance for small 
telecommunications service providers. Finally, the Further Notice of 
Proposed Rulemaking seeks comment on measures to avoid significant 
economic impact on small business entities, as defined by section 
601(3) of the Regulatory Flexibility Act.
(6) Federal Rules that May Duplicate, Overlap, or Conflict with the 
Proposed Rules.
    32. None.

B. Comment Dates and Filing Procedures

    33. We invite comment on the issues and questions set forth in the 
Further Notice of Proposed Rulemaking and Initial Regulatory 
Flexibility Analysis contained herein. Pursuant to applicable 
procedures set forth in Sec. 1.415 and Sec. 1.419 of the Commission's 
rules, interested parties may file comments as follows: comments are 
due August 7, 2000, and reply comments are due August 28, 2000. 
Comments may be filed using the Commission's Electronic Comment Filing 
System (ECFS) or by filing paper copies. See Electronic Filing of 
Documents in Rulemaking Proceedings, 63 FR 24,121 (1998).
    34. 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 
electronic comments by Internet e-mail. To receive 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 your e-mail address>.'' A sample form and directions will be 
sent in reply.
    35. 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 appears in the caption of this proceeding, commenters must 
submit two additional copies for each additional docket or rulemaking 
number. All filings must be sent to the Commission's Secretary, Magalie 
Roman Salas, Office of the Secretary, Federal Communications 
Commission, 445 12th Street, SW., Washington, DC 20554. Parties also 
should send three paper copies of their filing to Sheryl Todd, 
Accounting Policy Division, Common Carrier Bureau, Federal 
Communications Commission, 445 Twelfth Street, SW, Room 5-B540, 
Washington, DC 20554.
    36. Parties who choose to file by paper should also submit their 
comments on diskette to Sheryl Todd, Accounting Policy Division, Common 
Carrier Bureau, Federal Communications Commission, 445 Twelfth Street, 
SW., Room 5-B540, Washington, DC 20554. Such a submission should be on 
a 3.5 inch diskette formatted in an IBM-compatible format using 
Microsoft Word 97 for Windows or a compatible software. 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 lead docket number in the 
proceeding (CC Docket No. 96-45), type of pleading (comment or reply 
comment), date of submission, and the name of the electronic file on 
the diskette. The label should also include the following phrase 
(``Disk Copy Not an Original.'') Each diskette should contain only one 
party's pleadings, preferably in a single electronic file. In addition, 
commenters must send diskette copies to the Commission's copy 
contractor, International Transcription Service, Inc., 1231 20th 
Street, NW., Washington, DC 20037.

IV. Ordering Clauses

    37. Accordingly, it is ordered that, pursuant to the authority 
contained in sections 1-4, 201-205, 218-220, 254, 303(r), and 403 of 
the Communications Act of 1934, as amended, this Further

[[Page 47946]]

Notice of Proposed Rulemaking is adopted.
    38. It is further ordered that authority is delegated to the Chief 
of the Common Carrier Bureau pursuant to Sec. 0.291 of the Commission 
rules, to modify, or require the filing of, any forms that are 
necessary to implement the decisions and rules adopted.
    39. It is further ordered that the Commission's Consumer 
Information Bureau, Reference Information Center, shall send a copy of 
this Order, including the Final Regulatory Flexibility Analysis, to the 
Chief Counsel for Advocacy of the Small Business Administration.

List of Subjects in 47 CFR Part 54

    Reporting and recordkeeping requirements, Telecommunications, 
Telephone.

Federal Communications Commission.
William F. Caton,
Deputy Secretary.
[FR Doc. 00-19612 Filed 8-2-00; 8:45 am]
BILLING CODE 6712-01-U