[Federal Register Volume 66, Number 246 (Friday, December 21, 2001)]
[Proposed Rules]
[Pages 65866-65872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31411]



[[Page 65866]]

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[WT Docket No. 01-319; FCC 01-333]


Review of Quiet Zones Application Procedures

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Commission, pursuant to staff 
recommendations of the 2000 Biennial Review Report, reviews the 
application procedures for Quiet Zones to determine whether they can be 
made more efficient while continuing to ensure that such zones are 
fully protected from interference. In this document, the Commission 
seeks comment on whether to certain microwave applicants to initiate 
conditional operation even if the proposed site is located within a 
defined distance from a quiet zone. The Commission also seeks comment 
on whether to expedite application processing where there are Quiet 
Zone implications; whether to allow parties to provide notification to 
and begin coordination with Quiet Zone entities in advance of filing an 
application, and seeks comment on any possible modification of the rule 
prescribing the procedures for coordination with quiet zones and any 
specific service rules that implement the Commission's goals regarding 
protection of Quiet Zones from unwarranted and unacceptable 
interference.

DATES: Comments are due on or before January 22, 2002; Reply comments 
are due on or before February 6, 2002.

ADDRESSES: Parties who choose to file comments by paper should send 
comments to Magalie Roman Salas, Office of the Secretary, Federal 
Communications Commission, 445 12th Street, SW; TW-A325; Washington, 
D.C. 20554. Comments filed through the Commission's Electronic Comment 
Filing System (ECFS) can be sent as an electronic file via the Internet 
to http://www.fcc.gov/e-file/ecfs.html.

FOR FURTHER INFORMATION CONTACT: Katherine M. Harris at (202) 418-0609 
(Wireless Telecommunications Bureau).

SUPPLEMENTARY INFORMATION: This is a summary of the Notice of Proposed 
Rulemaking (``NPRM'') in WT Docket No. 01-319, FCC 01-333, adopted 
November 9, 2001 and released November 21, 2001. The complete text is 
available for inspection and copying during normal business hours in 
the FCC Reference Center, 445 12 Street, SW, Washington, DC and also 
may be purchased from the Commission's copy contractor, Qualex 
International, 445 12th Street, SW, CY-B402, Washington, DC 20554. The 
document is also available via the Internet at http://www.fcc.gov/Bureaus/Wireless/Orders/2001/fcc01333.pdf.

Paperwork Reduction Act

    1. The NPRM contains no proposed information collection.

Synopsis of Notice of Proposed Rulemaking

    2. This Notice of Proposed Rulemaking (NPRM) is a part of the 
Commission's biennial regulatory review, pursuant to section 11 of the 
Communications Act. In particular, this NPRM seeks comments on 
procedures for streamlining the Commission's rules for the processing 
of applications potentially affecting areas know as Quiet Zones.

I. Discussion

    3. This NPRM seeks comments on procedures for streamlining the 
Commission's rules for the processing of applications potentially 
affecting areas known as Quiet Zones, currently set forth in 47 CFR 
1.924 of our rules. Quiet Zones are defined as those areas where it is 
necessary to restrict radiation so as to minimize possible impact on 
the operations of radio astronomy or other facilities that are highly 
sensitive to interference. In seeking comments on these rules, the 
Commission is responding to concerns that the rules may be burdensome 
and unnecessarily delay the provision of service to the public. The 
Commission's purpose is to determine whether the required procedures 
can be streamlined to reduce the effect on wireless licenses while 
adequately protecting the operations of Quiet Zones.
    4. The Commission seeks comments on whether to allow part 101 
applicants to initiate conditional operation under Sec. 101.31(b), 
notwithstanding the limitation contained in Sec. 101.31(b)(1)(v), if 
they submit to the Commission written consent from the affected Quiet 
Zone entity and otherwise are eligible to initiate conditional 
operations over the proposed facility; whether to expedite application 
processing where there are Quiet Zone implications if the applicant 
provides written consent from the Quiet Zone entity; whether to allow 
parties to provide notification to and begin coordination with Quiet 
Zone entities in advance of filing an application with the Commission, 
including the appropriate period of time to prescribe for such advance 
notification and coordination; and possible modification of 47 CFR 
1.924, 90.655, 95.45, 101.1009, and 101.1329 and any other rules that 
implement the Commission's goals regarding protection of Quiet Zones 
from unwarranted and unacceptable interference.

II. Filing Procedures

    5. Pursuant to 47 CFR 1.415 and 1.419, interested parties may file 
comments on or before January 22, 2001, and reply comments on or before 
February 6, 2002. Comments may be filed by using the Commission's 
Electronic Comment Filing System (ECFS) or by filing paper copies. See 
Electronic Filing of Documents Rulemaking Proceeding, at 63 FR 24121 
May 1, 1998.
    6. Comments filed through 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 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 your e-mail 
address>.'' A sample form and directions will be sent in reply.
    7. Parties who choose to file by paper must file an original and 
four copies of each filing. All filings must be sent to the 
Commission's Secretary, Magalie Roman Salas, Office of the Secretary, 
Federal Communications Commission, 445 12th Street, S.W., TW-A325, 
Washington, DC 20554.
    8. Regardless of whether parties choose to file electronically or 
by paper, parties should also file one copy of any documents filed in 
this docket with the Commission's copy contractor, Qualex 
International, 445 12th Street, SW, CY-B402, Washington, DC 20554. 
Comments and reply comments will be available for public inspection 
during regular business hours in the FCC Reference Center, 445 12th 
Street, SW, Washington, DC 20554. Comments and reply comments must 
include a short and concise summary of the substantive arguments raised 
in the pleading. Comments and reply comments must also comply with 47 
CFR 1.49, and all

[[Page 65867]]

other applicable sections of the Commission's rules. The Commission 
also directs all interested parties to include the name of the filing 
party and the date of the filing on each page of their comments and 
reply comments. All parties are encouraged to utilize a table of 
contents, regardless of length of their submission.

III. Initial Regulatory Flexibility Analysis

    9. As required by the Regulatory Flexibility Act,\1\ (RFA) has 
prepared an Initial Regulatory Flexibility Analysis (IRFA) of the 
possible impact on small entities of the proposals in this Notice of 
Proposed Rulemaking. Written public comments are requested on this 
IRFA. These comments must be filed in accordance with the same filing 
deadlines for comments on the NPRM, and they must have a separate and 
distinct heading designating them as responses to the IRFA. The 
Commission's Consumer Information Bureau, Reference Information Center, 
will send a copy of this NPRM, including the IRFA, to the Chief Counsel 
for Advocacy of the Small Business Administration, in accordance with 
the Regulatory Flexibility Act.\2\ In addition, the Notice and IRFA (or 
summaries thereof) will be published in the Federal Register.\3\
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    \1\ 5 U.S.C. 603.
    \2\ 5 U.S.C. 603(a).
    \3\ See id.
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A. Need for, and Objectives of, the Rules

    10. In the Quiet Zones NPRM, the Commission seeks comment on a 
number of proposals to further its ongoing efforts under the 
Telecommunications Act of 1996 \4\ to foster competition in local 
communications markets. Specifically, the Commission seeks comments on: 
(1) whether to allow part 101 applicants to initiate conditional 
operation under 47 CFR 101.31(b), notwithstanding the limitation 
contained in 101.31(b)(1)(v), if they submit to the Commission written 
consent from the affected Quiet Zone entity and otherwise are eligible 
to initiate conditional operations over the proposed facility; (2) 
whether to expedite application processing where there are Quiet Zone 
implications if the applicant provides written consent from the Quiet 
Zone entity; (3) whether to allow parties to provide notification to 
and begin coordination with Quiet Zone entities in advance of filing an 
application with the Commission, and the appropriate period of time to 
prescribe for such advance notification and coordination; and (4) any 
possible modification of 47 CFR 1.924, 90.655, 95.45, 101.1009, and 
101.1329 and any other rules that implement the Commission's goals 
regarding protection of Quiet Zones from unwarranted and unacceptable 
interference.
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    \4\ Telecommunications Act of 1996, Public Law 104-104, 110 
Stat. 56 codified at 47 U.S.C. 151 et seq. (1996 Act). The 1996 Act 
amended the Communications Act of 1934 (the ``Communications Act'' 
or the ``Act'').
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B. Legal Basis

    11. The potential actions on which comment is sought in this Quiet 
Zones NPRM would be authorized under sections 1, 4(i), 11,303(g), and 
303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 151, 
154(i), 161, 303(g), and 303(r).
Description and Estimate of the Number of Small Entities to which the 
Rules Will Apply
    12. 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 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 section 3 of 
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 
SBA.\8\ 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\ ``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 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 81,6000 (96 percent) are small entities.
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    \5\ 5 U.S.C. 603(b)(3).
    \6\ U.S.C. 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 terms which are 
appropriate to the activities for the agency and publishes such 
definition(s) in the Federal Register.'' 5 U.S.C. 601(3).
    \8\ 15 U.S.C. 632.
    \9\ 5 U.S.C. 601(4).
    \10\ 1992 Economic Census, U.S. Bureau of 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\ U.S. Dept. of Commerce, Bureau of the Census, ``1992 Census 
of Governments.''
    \13\ Id.
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    13. In the following paragraphs, we further describe and estimate 
the number of small entity licensees that may be affected by any 
streamlining changes in the proposed rules, if adopted. Since this 
rulemaking proceeding applies to multiple services, we will analyze the 
number of small entities affected on a service-by-service basis. The 
number of small entities identified below substantially overestimates 
the number of small entities that might be affected by any rule change 
in this docket, since only entities proposing or planning facilities in 
proximity to any of the Quiet Zones would be affected by any changes in 
the requirements.
    14. Cellular Licensees. 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.\14\ According to the 
Bureau of the Census, only twelve radiotelephone firms from a total of 
1,178 such firms that operated during 1992 had 1,000 or more 
employees.\15\ 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. 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, which are

[[Page 65868]]

placed together in the data.\16\ 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 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. We estimate that there are no more than 808 small cellular 
service carriers that may be affected by any proposed rules that may be 
adopted.
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    \14\ 13 CFR 121.201, Standard Industrial Code (SIC) code 4812.
    \15\ 1992 Census, Series UC92-S-1 at Table 5, SIC code 4812.
    \16\ See Telecommunications Industry Revenues: 1999, Industry 
Analysis Division, Common Carrier Bureau (Sept. 2000).
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    15. 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.\17\ According to the Bureau of the Census, 
only 12 radiotelephone firms out of a total of 1,178 such firms that 
operated during 1992 had 1,000 or more employees.\18\ Therefore, if 
this general ratio continues, 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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    \17\ 13 CFR 121.201, WIC code 4812.
    \18\ 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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    16. 220 MHz Radio Service--Phase II Licensees. The Phase II 220 MHz 
service is subject to spectrum auctions. In the 220 MHz Third Report 
and Order in PR Docket No. 89-552, GN Docket No. 93-252, PP Docket No. 
93-253, 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. 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. The SBA has approved these definitions.\19\ Two auctions 
of Phase II licenses have been conducted. In the first auction, 908 
licenses were auctioned in three different-sized geographic areas: 
three nationwide licenses, 30 Economic Area Group (EAG) 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. The second auction included 225 licenses: 
216 EA licenses and 9 EAG licenses. Fourteen companies claiming small 
business status won 158 licenses.
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    \19\ See Letter to Daniel B. Phythyon, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration (Jan. 6, 
1998).
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    17. 700 MHz Guard Band Licenses. In the 700 MHz Guard Band Order in 
CC Docket No. 99-168, 65 FR 17594, April 4, 2000, 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. 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 52 Major Economic Area (MEA) 
licenses commenced on September 6, 2000, and closed on September 21, 
2000. Of the 104 licenses auctioned at that time, 96 licenses were sold 
to 9 bidders. Five of these bidders were small businesses that won a 
total of 26 licenses. A second auction began on February 13, 2001, and 
ended on February 21, 2001. A total of eight licenses were sold to 
three bidders. One of these bidders was a small business that won a 
total of two of these licenses.
    18. Paging. In the Paging Second Report and Order and Further 
Notice of Proposed Rulemaking in WT Docket No. 96-18; PP Docket No. 93-
253 at 62 FR 11616, March 12, 1997 and at 64 FR 33762, June 24, 1999, 
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 for 
the three preceding years of not more than $15 million. A very small 
business is defined as an entity that, together with affiliates and 
controlling principals, has average gross revenues for the three 
preceding calendar years of not more than $3 million. The SBA has 
approved these definitions.\20\ An auction of MEA licenses commenced on 
February 24, 2000, and closed on March 2, 2000. Of the 985 licenses 
auctioned, 440 were sold. Fifty-seven companies claiming small business 
status won licenses. In addition, 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.\21\ We are unable at this time to estimate 
with precision the number of paging carriers that would qualify as 
small business concerns, particularly among the pre-existing licensees. 
Consequently, we estimate that there are fewer than, but up to, 172 
small paging carriers that may be affected by the proposed rules, if 
adopted. 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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    \20\ See Letter to Amy J. Zoslov, Chief (Acting), Auctions and 
Industry Analysis Division, Wireless Telecommunications Bureau, 
Federal Communications Commission, from Aida Alvarez, Administrator, 
Small Business Administration, at 3-4 (Dec. 2, 1998).
    \21\ Trends in Telephone Service, Table 19.3 (Feb. 19, 1999).
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    19. Broadband Personal Communications Service (PCS). 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 in a Report and Order in WT Docket No. 96-59; GN Docket 
No. 90-314, 61 FR 33859, July 1, 1996. 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

[[Page 65869]]

the context of broadband PCS auctions have been approved by the 
SBA.\22\ 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.\23\ On March 23, 
1999, the Commission reauctioned 347 C, D, E, and F block licenses; 
there were 48 small business winning bidders. 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, plus the 48 winning 
bidders in the re-auction, for a total of 231 small entity PCS 
providers as defined by the SBA and the Commission's auction rules. On 
January 26, 2001, the Commission completed the auction of 422 C and F 
block broadband PCS licenses in Auction No. 35. Of the 35 winning 
bidders in this auction, 29 qualified as small or very small 
businesses.
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    \22\ See Letter to Amy J. Zoslov, Chief (Acting), Auctions and 
Industry Analysis Division, Wireless Telecommunications Bureau, 
Federal Communications Commission, from Aida Alvarez, Administrator, 
Small Business Administration, at 3 (Dec 2, 1998).
    \23\ FCC News, Broadband PCS, D,. E and F Block Auction Closes, 
No. 71744 (rel. Jan 14, 1997).
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    20. Narrowband PCS. To date, three auctions of narrowband PCS 
licenses have been conducted. Through these auctions, the Commission 
has awarded a total of 41 licenses, 11 of which were obtained by small 
businesses. For purposes of the first two auctions that have already 
been held, small businesses were defined as entities with average gross 
revenues for the prior three calendar years of $40 million or less in 
the Third Memorandum Opinion and Order and Further Notice of Proposed 
Rulemaking in PP Docket No. 93-253, 59 FR 44109, August 26, 1994. Four 
of the 16 winning bidders in the two previous narrowband PCS auctions 
were small businesses, as that term was defined under the then existing 
rules. To ensure meaningful participation of small business entities in 
subsequent auctions, the Commission adopted a two-tiered definition of 
small businesses in the Narrowband PCS Second Report and Order and 
Second Further Notice of Proposed Rulemaking in GN Docket No. 90-314, 
ET Docket No. 92-100, PP Docket No. 93-253, at 65 FR 35843 and 65 FR 
35875, June 6, 2000. A small business is an entity that, together with 
affiliates and controlling interests, has average gross revenues for 
the three preceding years of not more than $40 million. A very small 
business is an entity that, together with affiliates and controlling 
interests, has average gross revenues for the three preceding years of 
not more than $15 million. These definitions have been approved by the 
SBA.\24\ The third auction closed on October 16, 2001, and involved 
eight nationwide and 357 Metropolitan Trading Area (MTA) licenses. Five 
bidders won 317 licenses (309 MTA licenses and the eight nationwide 
licenses). Three of the five winning bidders were small businesses. The 
Commission cannot predict accurately the number of licenses that will 
be awarded to small entities in future auctions. The Commission 
assumes, for purposes of this IRFA, that a large portion of the 
remaining narrowband PCS licenses will be awarded to small entities. 
The Commission also assumes that at least some small businesses will 
acquire narrowband PCS licenses by means of the Commission's 
partitioning and disaggregation rules.
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    \24\ See Letter to Amy J. Zoslov, Chief (Acting), Auctions and 
Industry Analysis Division, Wireless Telecommunications Bureau. 
Federal Communication Commission, from Aida Alvarez, Administrator, 
Small Business Administration (Dec. 2, 1998).
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    21. Rural Radiotelephone Service. The Commission has not adopted a 
definition of small entity specific to the Rural Radiotelephone 
Service.\25\ A significant subset of the Rural Radiotelephone Service 
is the Basic Exchange Telephone Radio Systems (BETRS).\26\ We will use 
the SBA definition applicable to radiotelephone companies, i.e., an 
entity employing no more than 1,500 persons.\27\ 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 definition.
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    \25\ The service is defined in Sec. 22.99 of the Commission's 
rules, 47 CFR 22.99.
    \26\ BETRS is defined in Secs. 22.757 and 22.759 of the 
Commission's rules, 47 CFR 22.757 and 22.759.
    \27\ 13 CFR 121.201, SIC code 4812.
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    22. Air-Ground Radiotelephone Service. The Commission has not 
adopted a definition of small entity specific to the Air-Ground 
Radiotelephone Service.\28\ Accordingly, we will use the SBA definition 
applicable to radiotelephone companies, i.e., an entity employing no 
more than 1,500 persons.\29\ 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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    \28\ The service is defined in Sec. 22.99 of the Commission's 
rules, 47 CFR 22.99.
    \29\ 13 CFR 121.201, SIC code 4812.
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    23. Specialized Mobile Radio (SMR). The Commission has defined 
``small business'' for purposes of auctioning 900 MHz SMR licenses, 800 
MHz SMR licenses for the upper 200 channels, and 800 MHz SMR licenses 
for the lower 230 channels on the 800 MHz band, as a firm that has had 
average annual gross revenues of $15 million or less in the three 
preceding calendar years.\30\ The SBA has approved this small business 
size standard for the 800 MHz and 900 MHz auctions.\31\ Sixty winning 
bidders for geographic area licenses in the 900 MHz SMR band qualified 
as small businesses under the $15 million size standard. The auction of 
the 525 800 MHz SMR geographic area licenses for the upper 200 channels 
began on October 28, 1997, and was completed on December 8, 1997. Ten 
winning bidders for geographic area licenses for the upper 200 channels 
in the 800 MHz band qualified as small businesses under the $15 million 
size standard. An auction of 800 MHz SMR geographic area licenses for 
the General Category channels began on August 16, 2000, and was 
completed on September 1, 2000. Of the 1,050 licenses offered in that 
auction, 1,030 licenses were sold. Eleven winning bidders for licenses 
for the General Category channels in the 800 MHz SMR band qualified as 
small businesses under the $15 million size standard. In an auction 
completed on December 5, 2000, a total of 2,800 EA licenses in the 
lower 80 channels of the 800 MHz SMR service were sold. Of the 22 
winning bidders, 19 claimed small business status. In addition, there 
are numerous incumbent site-by-site SMR licensees in the 800 and 900 
MHz bands.
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    \30\ 47 CFR 90.814(b)(1).
    \31\ See Letter to Thomas J. Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration (Aug. 10, 
1999) (800 MHz SMR); Letter to Michele C. Farquhar, Acting Chief, 
Wireless Telecommunications Bureau, Federal Communications 
Commission, from Philip Lader, Administrator, Small Business 
Administration (July 24, 1996) (900 MHz SMR).
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    24. 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.

[[Page 65870]]

    25. 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 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.
    26. The Commission is unable at this time to estimate the number of 
small businesses that could be impacted by the rules. However, the 
Commission's 1994 Annual Report on PLMR \32\ 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.
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    \32\ Federal Communications Commission, 60th Annual Report, 
Fiscal Year 1994, at 116.
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    27. Amateur Radio Service. All Amateur Radio Service licenses are 
presumed to be individuals. Accordingly, no small business definition 
applies for this service.
    28. Aviation and Marine Radio Service. Small businesses in the 
aviation and marine radio services use a marine very high frequency 
(VHF) radio, any type of emergency position indicating radio beacon 
and/or radar, a VHF aircraft radio, and/or any type of emergency 
locator transmitter. The Commission has not developed a definition of 
small entities specifically applicable to these small businesses. 
Therefore, the applicable definition of small entity is the definition 
under the SBA rules for radiotelephone communications.\33\
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    \33\ 13 CFR 121.201, SIC code 4812.
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    29. Most applicants for recreational licenses are individuals. 
Approximately 581,000 ship station licensees and 131,000 aircraft 
station licensees operate domestically and are not subject to the radio 
carriage requirements of any statute or treaty. Therefore, for purposes 
of our evaluations and conclusions in this IRFA, we estimate that there 
may be at least 712,000 potential licensees that are individuals or 
small entities, as that term is defined by the SBA.
    30. Fixed Microwave Services. Microwave services include common 
carrier,\34\ private-operational fixed,\35\ and broadcast auxiliary 
radio services.\36\ 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.\37\ We estimate, for this 
purpose, that all of the Fixed Microwave licensees (excluding broadcast 
auxiliary licensees) would qualify as small entities under the SBA 
definition for radiotelephone companies.
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    \34\ 47 CFR part 101.
    \35\ 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.
    \36\ Auxiliary Microwave Service is governed by part 74 of Title 
47 of the Commission's rules. See 47 CFR 74.501 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 prickups, 
which relay signals from a remote location back to the studio.
    \37\ 13 CFR 121.201, SIC 4812.
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    31. Public Safety Radio Services. Public Safety radio services 
include police, fire, local government, forestry conservation, highway 
maintenance, and emergency medical services.\38\ There are a total of 
approximately 127,540 licensees within these services. Governmental 
entities \39\ as well as private businesses comprise the licensees for 
these services. As indicated supra in paragraph four of this IRFA, all 
governmental entities with populations of less than 50,000 fall within 
the definition of a small entity.\40\
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    \38\ With the exception of the special emergency service, these 
services are governed by subpart B of part 90 of the Commission's 
rules, 47 CFR 90.15-90.27. The police service includes 26,608 
licensees that serve state, county, and municipal enforcement 
through telephony (voice), telegraphy (code) and teletype and 
facsimile *printed material). The fire radio service includes 22,677 
licensees comprised of private volunteer or professional fire 
companies as well as units under governmental control. The local 
government service is currently comprised of 40,512 licensees that 
are state, county, or municipal entities that use the radio for 
official purposes not covered by other public safety services. There 
are 7,325 licensees within the forestry service, which is comprised 
of licensees from state departments of conservation and private 
forest organizations that set up communications networks among fire 
lookout towers and ground crews. The 9,480 state and local 
governments are licensed to highway maintenance service provide 
emergency and routine communications to aid other public safety 
services to keep main roads safe for vehicular traffic. The 1,460 
licensees in the Emergency Medical Radio Service (EMRS)
    \39\ 47 CFR 1.1162.
    \40\ 5 U.S.C. 601(5).
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    32. Personal Radio Services. Personal radio services provide short-
range, low-power radio for personal communications, radio signaling, 
and business communications not provided for in other services. The 
services include the citizen's band (CB) radio service, general mobile 
radio service (GMRS), radio control radio service, and family radio 
service (FRS).\41\ Inasmuch as the CB, GMRS, and FRS licensees are 
individuals, no small business definition applies for these services. 
We are unable at this time to estimate the number of other licensees 
that would qualify as small under the SBA's definition.
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    \41\ Licensees in the Citizens Band (CB) Radio Service, General 
Mobile Radio Service (GMRS), Radio Control (R/C) Radio Service and 
Family Radio Service (FRS) are governed by subpart D, subpart A, 
subpart C, and subpart B, respectively, of part 95 of the 
Commission's rules. 47 CFR 95.401-95.428; 95.1-95.181; 95.201-
95.225; 95.191-95,194.
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    33. 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 22.1001-22.1037.
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    34. 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 in a Report and Order in 
GN Docket No. 96-228, 62 FR 9636, March 3, 1997. 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.

[[Page 65871]]

    35. Local Multipoint Distribution Service. The Commission held two 
auctions for licenses in the Local Multipoint Distribution Services 
(LMDS) (Auction No. 17 and Auction No. 23). For both of these auctions, 
the Commission defined a small business as an entity, together with its 
affiliates and controlling principals, having average gross revenues 
for the three preceding years of not more than $40 million in a Second 
Report and Order, Order on Reconsideration, and Fifth Notice of 
Proposed Rulemaking in CC Docket No. 92-297, 62 FR 23148, April 29, 
1997. A very small business was defined as an entity, together with 
affiliates and controlling principals, having average gross revenues 
for the three preceding years of not more than $15 million in a Second 
Order on Reconsideration in CC Docket No. 92-297, 62 FR 48787, 
September 17, 1997. Of the 144 winning bidders in Auction Nos. 17 and 
23, 125 bidders (87 percent) were small or very small businesses.
    36. 24 GHz--Incumbent 24 GHz Licensees. The rules that we may later 
adopt could affect incumbent licensees who were relocated to the 24 GHz 
band from the 18 GHz band, and applicants who wish to provide services 
in the 24 GHz band. The Commission did not develop a definition of 
small entities applicable to existing licensees in the 24 GHz band. 
Therefore, the applicable definition of small entity is the definition 
under the SBA rules for the radiotelephone industry, providing that a 
small entity is a radiotelephone company employing fewer than 1,500 
persons.\43\ The 1992 Census of Transportation, Communications and 
Utilities, conducted by the Bureau of the Census, which is the most 
recent information available, shows that only 12 radiotelephone firms 
out of a total of 1,178 such firms that operated during 1992 had 1,000 
or more employees.\44\ This information notwithstanding, we believe 
that there are only two licensees in the 24 GHz band that were 
relocated from the 18 GHz band, Teligent \45\ and TRW, Inc. It is our 
understanding that Teligent and its related companies have less than 
1,500 employees, though this may change in the future. TRW is not a 
small entity. Thus, only one incumbent licensee in the 24 GHz band is a 
small business entity.
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    \43\ See 13 CFR 121.201, SIC code 4812.
    \44\ 1992 Census at Firm Size 1-123.
    \45\ Teligent acquired the DEMS licenses of FirstMark, the only 
licensee other than TRW in the 24 GHz band whose license has been 
modified to require relocation to the 24 GHz band.
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    37. Future 24 GHz Licensees. With respect to new applicants in the 
24 GHz band, we have defined ``small business'' as an entity that, 
together with controlling interests and affiliates, has average annual 
gross revenues for the three preceding years not in excess of $15 
million. ``Very small business'' in the 24 GHz band is defined as an 
entity that, together with controlling interests and affiliates, has 
average gross revenues not exceeding $3 million for the preceding three 
years in a Report and Order in WT Docket No. 99-327, 66 FR 11113, 
February 22, 2001.\46\ The SBA has approved these definitions.\47\ The 
Commission will not know how many licensees will be small or very small 
businesses until the auction, if required, is held. Even after that, 
the Commission will not know how many licensees will partition their 
license areas or disaggregate their spectrum blocks, if partitioning 
and disaggregation are allowed.
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    \46\ In the Matter of Amendments to Parts 1, 2, 87 and 101 of 
the Commission's Rules To License Fixed Services at 24 GHz, Report 
and Order, 15 FCC Rcd at 16967; see also 47 CFR 101.538(a)(1).
    \47\ See Letter to Margaret W. Wiener, Deputy Chief, Auctions 
and Industry Analysis Division, Wireless Telecommunications Bureau, 
Federal Communications Commission, from Gary M. Jackson, Assistant 
Administrator, Small Business Administration (July 28, 2000).
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    38. 39 GHz. The Commission held an auction (Auction No. 30) for 
fixed point-to-point microwave licenses in the 38.6 to 40.0 GHz band 
(39 GHz Band).\48\ For this auction, the Commission defined a small 
business as an entity, together with affiliates and controlling 
interests, having average gross revenues for the three preceding years 
of not more than $40 million in a Report and Order in ET Docket No. 95-
183; PP Docket No. 93-253, 63 FR 6079, February 6, 1998 and also in the 
Second Notice of Proposed Rulemaking at 63 FR 3075, January 21, 1998. A 
very small business was defined as an entity, together with affiliates 
and controlling principals, having average gross revenues for the three 
preceding years of not more than $15 million. The SBA has approved 
these definitions.\49\ Of the 29 winning bidders in Auction No. 30, 18 
bidders (62 percent) were small business participants.
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    \48\ See 39 GHz Band Auction Closes; Winning Bidders of 2,173 
Licenses Announced, Public Notice, DA 00-1035 (May 10, 2000).
    \49\ See Letter to Kathleen O'Brien Ham, Chief, Auctions and 
Industry Analysis Division, Wireless Telecommunications Bureau, 
Federal Communications Commssion, from Aida Alvarez, Administrator, 
Small Business Administration (Feb. 4, 1998).
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    39. 218-219 MHz Service. The first auction of 218-219 MHz spectrum 
resulted in 170 entities winning licenses for 595 Metropolitan 
Statistical Area (MSA) licenses. Of the 595 licenses, 557 were won by 
entities qualifying as a small business. For that auction, we defined a 
small business as an entity that, together with its affiliates, has no 
more than a $6 million net worth, and after federal income taxes 
(excluding any carry over losses), has no more than $2 million in 
annual profits each year for the previous two years in the Fourth 
Report and Order in PP Docket No. 93-253, 59 FR 25825, May 18, 1994. In 
the 218-219 MHz Report and Order and Memorandum Opinion and Order at 64 
FR 59656, November 3, 1999, we defined a small business as an entity 
that, together with its affiliates and persons or entities that hold 
interests in such an entity and their affiliates, has average annual 
gross revenues not to exceed $15 million for the preceding three years 
WT Docket No. 98-169. A very small business is defined as an entity 
that, together with its affiliates and persons or entities that hold 
interests in such an entity and their affiliates, has average annual 
gross revenues not to exceed $3 million for the preceding three years. 
These definitions have been approved by the SBA.\50\ We cannot 
estimate, however, the number of licenses that will be won by entities 
qualifying as small or very small businesses under our rules in future 
auctions of 218-219 MHz spectrum. Given the success of small businesses 
in the previous auction, and the prevalence of small business in the 
subscription television services and message communications industries, 
we assume for purposes of this IRFA that in future auctions, all of the 
licenses may be awarded to small businesses.
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    \50\ See Letter to Daniel B. Phythyon, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration (Jan. 
6.1998).
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D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    40. The Quiet Zones NPRM proposes no additional reporting, 
recordkeeping or other compliance measures.

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

    41. 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 (among others): (1) 
the establishment of different 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 rules for small 
entities; (3) the

[[Page 65872]]

use of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.
    42. The purpose of this rulemaking is to seek comment on possible 
procedures for streamlining the regulatory obligations associated with 
wireless applications and facilities that may implicate the 
Commission's defined Quiet Zones, while still adequately and fully 
protecting the various operations located in the Quiet Zones. One 
alternative considered, as suggested by a commenter,\51\ is to remove 
rules and provisions that restrict or limit activities of all entities, 
including small businesses, in the Quiet Zones. While evaluating this 
alternative, the Commission has carefully considered the overlying 
public policy and safety needs that necessitated maintaining the Quiet 
Zones provisions. Therefore, while the Commission does not intend to 
alter the basic protection given to Quiet Zones, it is willing to 
examine and give careful consideration to any proposals that would 
reduce or alleviate the burdens on small entities, as well as other 
affected parties.
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    \51\ See Notice of Proposed Rulemaking, paragraphs 4-11.
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    43. More specifically, the Commission is considering as an 
alternative resuming processing of an application with Quiet Zone 
implications if written consent from the affected Quiet Zone entity is 
provided.\52\ This alternative could greatly reduce the processing time 
for an application submitted by all entities, including small entities. 
Parties, including small entities, are encouraged to provide additional 
alternatives for consideration.
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    \52\ See id., paragraph 9.
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F. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    None.

III. Ordering Clause

    44. Pursuant to the authority of sections 1, 4(i), 11, 303(g), and 
303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 151, 
154(i), 161, 303(g), and 303(r), that this Notice of Proposed 
Rulemaking is ADOPTED.
    45. The Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of the Notice of Proposed 
Rulemaking, including the Initial Regulatory Flexibility Analysis, to 
the Chief Counsel for Advocacy of the Small Business Administration.
    46. The Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of the Notice of Proposed 
Rulemaking, including the Initial Regulatory Flexibility Analysis, to 
the Chief Counsel for Advocacy of the Small Business Administration in 
accordance with Sections 603(a) and 604(b) of the Regulatory 
Flexibility Act, Public Law 96-354, 94 Stat. 1164, 5 U.S.C.A. 603(a) 
and 604(b).

List of Subjects 47 CFR Part 1

    Telecommunications.

Federal Communications Commission.
William F. Caton,
Deputy Secretary.
[FR Doc. 01-31411 Filed 12-20-01; 8:45 am]
BILLING CODE 6712-01-P