[Federal Register Volume 68, Number 61 (Monday, March 31, 2003)]
[Proposed Rules]
[Pages 15419-15425]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-7556]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 76 and 78

[MB Docket No. 03-50; FCC 03-37]


Extend Interference Protection for the Marine and Aeronautical 
Distress and Safety Frequency at 406.025 MHz

AGENCY: Federal Communications Commission

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Commission proposes to provide interference protection for 
the international emergency digital distress and safety frequency 
operating at 406.025 MHz. New Emergency Position Indicated Radio 
Beacons (EPRIBs) and Emergency Locator Transmitters (ELTs) are using 
digital signals operating on 406.025 MHz instead of the traditional 
analog signals which operate on 121.5 and 243.0 MHz. The rules proposed 
herein will protect the frequency 406.025 MHz from possible 
interference from cable television systems and multi-channel video 
program distributor (MVPD) systems operating near this frequency. In 
addition, the Commission seeks comment on adding a provision to part 78 
regarding the cancellation or forfeiture of unused or discontinued 
Cable Television Relay Service (CARS) licenses. Canceling unused or 
discontinued CARS licenses will help the Commission conserve and 
reclaim unused spectrum. Also, in order to keep the rules consistent 
and up to date, the Commission proposes to streamline and revise 
certain sections of parts 76 and 78.

DATES: Comments are due on or before April 30, 2003 and reply comments 
are due on or before May 15, 2003. Written comments by the public on 
the proposed information collections are due April 30, 2003. Written 
comments must be submitted by the Office of Management and Budget (OMB) 
on the proposed information collection(s) on or before May 30, 2003.

ADDRESSES: Federal Communications Commission, 445 12th Street, SW., 
Washington, DC 20554. In addition to filing comments with the 
Secretary, a copy of any comments on the information collections 
contained herein should be submitted to Judith Boley Herman, Federal 
Communications Commission, Room 1-C804, 445 12th Street, SW., 
Washington, DC 20554, or via the Internet to [email protected], and to 
Jeanette Thornton, OMB Desk Officer, Room 10236 NEOB, 725 17th Street, 
NW., Washington, DC 20503 or

[[Page 15420]]

via the Internet to [email protected].

FOR FURTHER INFORMATION CONTACT: Sarah Mahmood, Media Bureau at (202) 
418-7009 or via Internet at [email protected]. For additional 
information concerning the information collection(s) contained in this 
NPRM, contact Judith Boley Herman at 202-418-0214, or via the Internet 
at [email protected].

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Notice of Proposed Rule Making, MB Docket No. 03-050, adopted February 
24, 2003 and released March 5, 2003. The full text of this decision is 
available for inspection and copying during normal business hours in 
the FCC Reference Information Center, Portals II, 445 12th Street, SW., 
Room CY-A257, Washington, DC 20554, and may be purchased from the 
Commission's copy contractor, Qualex International, Portals II, 445 
12th Street, SW., Room CY-B402, Washington, DC 20554, telephone (202) 
863-2893, facsimile (202) 863-2898, or via e-mail [email protected] or 
may be viewed via internet at http://www.fcc.gov/mb/.
    1. This Notice of Proposed Rule Making (NPRM) proposes to modify 
Sec.  76.616 of our rules to include the international digital search 
and rescue frequency 406.025 MHz within the prohibition on cable system 
operation near the emergency and distress frequencies. As part of our 
continual review of our technical rules, this NPRM also proposes 
streamlining and revising part 76, Multichannel Video and Cable 
Television Service rules, and part 78, Cable Television Relay Service 
rules, by eliminating outdated rules, correcting others, and 
maintaining consistency throughout different Commission Rule parts.
    2. The United States, Canada, France, and Russia use COSPAS/SARSAT 
satellites to detect and locate distress signals from Emergency 
Position Indicating Radio Beacons (EPIRBs) and Emergency Locator 
Transmitters (ELTs). Older EPIRBs and ELTs use analog signals and 
operate on 121.5 MHz and 243.0 MHz. Section 76.616 of our rules is 
designed to protect the emergency frequencies at 121.5 MHz and 243.0 
MHz from interference by cable television systems operating near these 
frequencies. The Commission adopted rules prohibiting the transmission 
of carriers or other signal components capable of delivering peak power 
levels equal to or greater than 10 microwatts (10-5 watts) 
at any point in a cable television system within 100 kHz of the 
frequency 121.5 MHz and within 50 kHz of the frequency 243.0 MHz.
    3. Newer EPIRBs and ELTs use digital signals and operate on 406.025 
MHz. Conforming to satellite use, the Commission adopted rules 
authorizing the use of the frequency 406.025 MHz for EPIRBs in the 
maritime radio services, aviation radio services, and for Personal 
Locator Beacons (PLBs). According to the U.S. Coast Guard, EPIRBs 
operating on the frequency 406.025 MHz account for four times the 
number of lives saved as 121.5/243.0 MHz EPIRBs and are responsible for 
only two percent of the total number of false alerts attributed to 
121.5/243.0 MHz EPIRBs. This is due in part to the ability of rescue 
personnel to locate and detect the emergency signal more efficiently 
using the additional registration information contained in the 406.025 
MHz signal that specifically identifies the beacon in distress. As a 
result, COSPAS/SARSAT announced that it would stop equipping new 
satellites with 121.5/243.0 MHz processors and plans to establish a 
date after which any remaining active processors will be turned off. 
Carriage of the 406.025 MHz EPIRB is already required aboard SOLAS-
class merchant vessels and U.S. commercial fishing vessels. The 406.025 
MHz EPIRB is also being used aboard recreational vessels at an 
increasing rate. In light of these special circumstances surrounding 
the exclusive use of 406.025 MHz as an emergency communication 
frequency, it is appropriate to consider revising our rules to protect 
406.025 MHz against harmful interference by cable television systems 
and MVPDs.
    4. Analog EPIRBs and ELTs designed to transmit on 121.5 MHz and 
243.0 MHz transmit amplitude modulated continuous signals with an audio 
swept tone. The audio swept tone assists Search and Rescue (SAR) 
personnel by emitting a distinctive aural signal. These signals also 
provide distress alerting and homing assistance in emergency 
situations. Digital EPIRBs and ELTs designed to transmit on 406.025 MHz 
send short digital signals to provide distress alerting in emergencies 
and use 121.5 MHz to provide homing. The 406.025 MHz digital signal 
includes information on the type of emergency, the country and 
identification code of the beacon in distress, and other information to 
significantly aid SAR operations. In addition, 406.025 MHz distress 
signals can be stored on-board COSPAS/SARSAT satellites and then later 
retransmitted to a ground station, thereby eliminating the ``blind 
spots'' that exist with the older analog 121.5 MHz and 243.0 MHz EPIRBs 
and ELTs.
    5. Lifesaving efforts have been significantly aided by EPIRBs and 
ELTs operating on 406.025 MHz. The use of 406.025 MHz EPIRBs has been 
increasing rapidly, particularly as mandatory requirements come into 
effect. This has led the United States and the international community 
to consider transitioning to the exclusive use of 406.025 MHz EPIRBs in 
the near future.
    6. We propose to amend Sec.  76.616 of our rules to extend 
protection to the additional emergency frequency at 406.025 MHz. In 
light of the special circumstances surrounding the use of this 
emergency frequency, we propose forbidding the transmission of carriers 
or other signal components capable of delivering peak power levels 
equal to or greater than 10 microwatts (10-5 watts) at any 
point in the cable television system within 100 kHz of 406.025 MHz. 
Prohibiting cable television operation within this limited guard band 
will not substantially impact current cable television operation, as 
the closest cable television frequency in use is the color carrier of 
cable channel 54, which is approximately 800 kHz from 406.025 MHz. We 
request comment on this proposal.
    7. As part of our effort to keep our rules consistent and up to 
date, we propose the following deletions and updates.
    8. We are proposing to eliminate Sec. Sec.  76.618 and 76.619 
because the period allotted for grandfathered cable television 
operation ended on July 1, 1990. Consequently, we also are proposing to 
amend Sec.  76.610 to remove the reference to Sec. Sec.  76.618 and 
76.619 found in the last sentence of the rule. In addition, we are 
deleting Note 2 of Sec.  76.610 because the exclusion of the frequency 
band 136-137 MHz expired on January 1, 1990. We also propose 
incorporating Sec.  76.620 into Sec.  76.610 as the requirements under 
Sec.  76.610 apply to all MVPDs (cable and non-cable).
    9. We recognize the need to add a provision to part 78 addressing 
the cancellation or forfeiture of unused or discontinued CARS licenses. 
We feel that this provision is necessary to help conserve spectrum and 
to reclaim unused spectrum. We seek comment on how the cancellation or 
forfeiture of unused or discontinued CARS licenses should be 
implemented. We note that Sec.  101.65 addresses the same issue for 
fixed microwave licenses.
    10. We also propose some miscellaneous corrections for various 
sections of the Commission's Rules as indicated below.
    11. Our proposal to expand the safeguard provision to include the 
international digital emergency distress frequency at 406.025 MHz is 
intended to

[[Page 15421]]

promote ``safety of life and property through the use of wire and radio 
communication.'' In addition, the elimination of outdated regulations 
should increase regulatory efficiency.

I. Procedural Matters

A. Initial Regulatory Flexibility Analysis

    12. As required by Section 603 of the Regulatory Flexibility Act, 
the Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) of the expected impact on small entities of the proposals 
suggested in this document. The IRFA is set forth below. Written public 
comments are requested on the IRFA. In order to fulfill the mandate of 
the Contract with America Advancement Act of 1996 regarding the Final 
Regulatory Flexibility Analysis, we ask a number of questions regarding 
the prevalence of small businesses in the affected industries.
    13. Comments must be filed in accordance with the same filing 
deadlines as comments filed in this NPRM, but they must have a separate 
and distinct heading designating them as responses to the IRFA. The 
Commission's Consumer Information Bureau, Reference Information Center, 
SHALL SEND a copy of this NPRM, including the IRFA, to the Chief 
Counsel for Advocacy of the Small Business Administration in accordance 
with Section 603(a) of the Regulatory Flexibility Act.

B. Paperwork Reduction Act

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

C. Ex Parte--Permit-But-Disclose Proceedings

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

D. Filing of Comments and Reply Comments

    16. Pursuant to applicable procedures set forth in Sec. Sec.  1.415 
and 1.419 of the Commission's rules, 47 CFR 1.415 and 1.419, interested 
parties may file comments on or before April 30, 2003, and reply 
comments on or before May 15, 2003. Comments may be filed using the 
Commission's Electronic Comment Filing System (ECFS) or by filing paper 
copies. See Electronic Filing of Documents in Rulemaking Proceedings, 
63 FR 24121 (1998).
    17. 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, U.S. Postal Service mailing address, and the 
applicable docket or rulemaking number. Parties may also submit an 
electronic comment by Internet e-mail. To get filing instructions for 
e-mail comments, commenters should send an e-mail to [email protected], and 
should include the following words in the body of the message, ``get 
form .'' A sample form and directions 
will be sent in reply.
    18. Parties who choose to file by paper must file an original and 
four copies of each filing. If more than one docket or rulemaking 
number appear in the caption of this proceeding, commenters must submit 
two additional copies for each additional docket or rulemaking number. 
Pursuant to Sec. Sec.  1.415 and 1.419 of the Commission's rules, 47 
CFR 1.415, 1.419, interested parties may file comments on or before 
April 30, 2003, and reply comments on or before May 15, 2003. Comments 
may be filed using the Commission's Electronic Comment Filing System 
(ECFS) or by filing paper copies. See Electronic Filing of Documents in 
Rulemaking Proceedings, 63 FR 24121 (1998).
    19. 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, U.S. Postal Service mailing address, and the 
applicable docket or rulemaking number. Parties may also submit an 
electronic comment by Internet e-mail. To get filing instructions for 
e-mail comments, commenters should send an e-mail to [email protected], and 
should include the following words in the body of the message, ``get 
form''. A sample form and directions will be sent in reply. Parties who 
choose to file by paper must file an original and four copies of each 
filing. If more than one docket or rulemaking number appear in the 
caption of this proceeding, commenters must submit two additional 
copies for each additional docket or rulemaking number.
    20. Filings can be sent by hand or messenger delivery, by 
commercial overnight courier, or by first-class or overnight U.S. 
Postal Service mail (although we continue to experience delays in 
receiving U.S. Postal Service mail).
    21. The Commission's contractor, Vistronix, Inc., will receive 
hand-delivered or messenger-delivered paper filings for the 
Commission's Secretary at 236 Massachusetts Avenue, NE., Suite 110, 
Washington, DC 20002. The filing hours at this location are 8 a.m. to 7 
p.m. All hand deliveries must be held together with rubber bands or 
fasteners. Any envelopes must be disposed of before entering the 
building. Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743. U.S. Postal Service first-class mail, 
Express Mail, and Priority Mail should be addressed to 445 12th Street, 
SW., Washington, DC 20554. All filings must be addressed to the 
Commission's Secretary, Marlene H. Dortch, Office of the Secretary, 
Federal Communications Commission, 445 12th Street, SW., Room TW-A325, 
Washington, DC 20554. The Media Bureau contact for this proceeding is 
Sarah Mahmood at (202) 418-7009, TTY (202) 418-7172, or at 
[email protected].

[[Page 15422]]

    22. Parties who choose to file by paper should also submit their 
comments on diskette. Parties should submit diskettes to Sarah Mahmood, 
Media Bureau, 445 12th Street SW., Room 4-C824, Washington, DC 20554. 
Such a submission should be on a 3.5-inch diskette formatted in an IBM 
compatible form using MS DOS 5.0 and Microsoft Word, or compatible 
software. The diskette should be accompanied by a cover letter and 
should be submitted in ``read only'' mode. The diskette should be 
clearly labeled with the party's name, proceeding (including the lead 
docket number in this case MB Docket No. 03-50), type of pleading 
(comments or reply comments), 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, referable in a single electronic 
file. In addition, commenters must send diskette copies to the 
Commission's copy contractor, Qualex International, Portals II, 445 
12th Street, SW., Room CY-B402, Washington, DC 20554.
    23. Written comments by the public on the proposed and/or modified 
information collections are due April 30, 2003. Written comments must 
be submitted by the Office of Management and Budget (OMB) on the 
proposed and/or modified information collections on or before May 30, 
2003. In addition to filing comments with the Secretary, a copy of any 
comments on the information collection(s) contained herein should be 
submitted to Judith Boley Herman, Federal Communications Commission, 
Room 1-C804, 445 12th Street, SW., Washington, DC 20554, or via the 
Internet to [email protected] and to Jeanette Thornton, OMB Desk 
Officer, Room 10236 NEOB, 725 17th Street, NW., Washington, DC 20503 or 
via the Internet to [email protected].

II. Initial Regulatory Flexibility Analysis

    24. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), the Commission has prepared this Initial Regulatory 
Flexibility Analysis (IRFA) of the possible significant economic impact 
on a substantial number of small entities by the policies and rules 
proposed in this NPRM. 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 NPRM provided in paragraph 
17 of the item. The Commission will send a copy of this NPRM, including 
this IRFA, to the Chief Counsel for Advocacy of the Small Business 
Administration (SBA). In addition, the NPRM and IRFA (or summaries 
thereof) will be published in the Federal Register.

A. Need for, and Objectives of, the Proposed Rules

    25. The basis of this NPRM is our concern to assess the need to 
protect the emergency and distress frequency at 406.025 MHz from cable 
system operations in order to promote the safety of life and property. 
We also aim to streamline the rules by eliminating outdated regulations 
and making some minor changes as detailed below.
    26. We seek comment on the following objectives which are proposed 
for consideration in this NPRM:
    [sbull] Whether to provide for the protection of emergency and 
distress frequency 406.025 MHz by updating Sec.  76.616 to include that 
frequency in the group of protected frequencies;
    [sbull] Whether the industry believes that unused or discontinued 
CARS licenses should be forfeited or cancelled;
    [sbull] Whether to include signal leakage restrictions among the 
other requirements within Part 76 listed in Sec.  76.1510 that apply to 
open video systems;
    [sbull] Whether to eliminate of Sec. Sec.  76.618 and 76.619 
because the date after which operators on these were grandfathered to 
continue operations ended on July 1, 1990; and
    [sbull] Whether to effect the miscellaneous amendments which 
exclusively involve typographical errors or operations that have become 
obsolete.

B. Legal Basis

    27. The proposed action is authorized under Sections 4, 4(i), 157, 
303, 303(g), 303(r), and 307 of the Communications Act of 1934, as 
amended, 47 U.S.C. 154, 154(i), 157, 303, 303(g), 303(r), 307.

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

    28. The RFA directs the Commission to provide a description of and, 
where feasible, an estimate of the number of small entities that will 
be affected by the rules adopted herein. The RFA defines the term 
``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction'' under Section 3 of the Small Business Act. Under the 
Small Business Act, a small business concern is one which: (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'').
    29. 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. ``Small government 
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 87,525 governmental entities in the United States. This 
number includes 38,978 counties, cities, and towns: of these, 37,566, 
or 96%, 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 (96%) are small entities. Below, we further 
describe and estimate the number of small entity licensees and 
regulates, including cities, counties, farms, villages, and other small 
organizations that may be affected by these rules.
    30. The rules we adopt as a result of this NPRM protect the 
emergency and distress frequency 406.025 MHz from interference from 
cable system operations. The nearest cable frequency is a color carrier 
approximately 800 kHz above the emergency and distress frequency at 
406.83 MHz.
    31. Small MVPDs. SBA has developed a definition of small entities 
for cable and other program distribution services, which includes such 
companies generating $12.5 million or less in annual receipts. This 
definition includes cable system operators, closed circuit television 
services, direct broadcast satellite services, multipoint distribution 
systems, satellite master antenna systems, and subscription television 
services. According to the Census Bureau, there were 1,423 such cable 
and other program distribution services generating less than $12.5 
million in revenue. We address below services individually to provide a 
more precise estimate of small entities.
    32. The Commission has developed, with SBA's approval, its own 
definition of a small cable system operator for the purposes of rate 
regulation. Under the Commission's rules, a ``small cable company'' is 
one serving fewer than 400,000 subscribers nationwide. Based on our 
most recent information, we estimate that there were 1439 cable 
operators that qualified as small cable companies at the end of 1995. 
Since

[[Page 15423]]

then, some of those companies may have grown to serve over 400,000 
subscribers, and others may have been involved in transactions that 
caused them to be combined with other cable operators. The Commission's 
rules define a ``small system,'' for the purposes of rate regulation, 
as a cable system with 15,000 or fewer subscribers. The Commission does 
not request nor does the Commission collect information concerning 
cable systems serving 15,000 or fewer subscribers and thus is unable to 
estimate, at this time, the number of small cable systems nationwide.
    33. The Communications Act, as amended, also contains a size 
standard for a small cable system operator, which is ``a cable operator 
that, directly or through an affiliate, serves in the aggregate fewer 
than 1% of all subscribers in the United States and is not affiliated 
with any entity or entities whose gross annual revenues in the 
aggregate exceed $250,000,000.'' The Commission has determined that 
there are 68,500,000 subscribers in the United States. Therefore, an 
operator serving fewer than 685,000 subscribers shall be deemed a small 
operator if its annual revenues, when combined with the total annual 
revenues of all of its affiliates, do not exceed $250 million in the 
aggregate. Based on available data, we find that the number of cable 
operators serving 685,000 subscribers or less totals approximately 
1,450. Although it seems certain that some of these cable system 
operators are affiliated with entities whose gross annual revenues 
exceed $250,000,000, we are unable at this time to estimate with 
greater precision the number of cable system operators that would 
qualify as small cable operators under the definition in the 
Communications Act.
    34. Satellite Master Antenna Television Systems (``SMATV''). The 
SBA definition of small entities for cable and other program 
distribution services includes SMATV services and, thus, small entities 
are defined as all such companies generating $12.5 million or less in 
annual receipts. Industry sources estimate that approximately 5,200 
SMATV operators were providing service as of December 1995. Other 
estimates indicate that SMATV operators serve approximately 1.5 million 
residential subscribers as of July 2001. The best available estimates 
indicate that the largest SMATV operators serve between 15,000 and 
55,000 subscribers each. Most SMATV operators serve approximately 
3,000-4,000 customers. Because these operators are not rate regulated, 
they are not required to file financial data with the Commission. 
Furthermore, we are not aware of any privately published financial 
information regarding these operators. Based on the estimated number of 
operators and the estimated number of units served by the largest ten 
SMATVs, we believe that a substantial number of SMATV operators qualify 
as small entities.
    35. Open Video System (``OVS''). Because OVS operators provide 
subscription services, OVS falls within the SBA-recognized definition 
of cable and other program distribution services. This definition 
provides that a small entity is one with $ 12.5 million or less in 
annual receipts. The Commission has certified 25 OVS operators with 
some now providing service. Affiliates of Residential Communications 
Network, Inc. (``RCN'') received approval to operate OVS systems in New 
York City, Boston, Washington, DC and other areas. RCN has sufficient 
revenues to assure us that they do not qualify as small business 
entities. Little financial information is available for the other 
entities authorized to provide OVS that are not yet operational. Given 
that other entities have been authorized to provide OVS service but 
have not yet begun to generate revenues, we conclude that at least some 
of the OVS operators qualify as small entities.
    36. Multichannel, Multipoint Distribution Service (``MMDS''). MMDS 
systems, often referred to as ``wireless cable,'' transmit video 
programming to subscribers using the microwave frequencies of the MDS 
and ITFS. In connection with the 1996 MDS auction, the Commission 
defined small businesses as entities that had annual average gross 
revenues of less than $40 million in the previous three calendar years. 
This definition of a small entity in the context of MDS auctions has 
been approved by the SBA. The MDS auctions resulted in 67 successful 
bidders obtaining licensing opportunities for 493 Basic Trading Areas 
(``BTAs''). Of the 67 auction winners, 61 met the definition of a small 
business. MDS also includes licensees of stations authorized prior to 
the auction. As noted, the SBA has developed a definition of small 
entities for program distribution services, which includes all such 
companies generating $12.5 million or less in annual receipts. This 
definition includes multipoint distribution services, and thus applies 
to MDS licensees and wireless cable operators that did not participate 
in the MDS auction. Information available to us indicates that there 
are approximately 850 of these licensees and operators that do not 
generate revenue in excess of $12.5 million annually. Therefore, for 
purposes of the IRFA, we find there are approximately 850 small MDS 
providers as defined by the SBA and the Commission's auction rules.

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

    37. This NPRM proposes no changes in reporting, recordkeeping or 
compliance.

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

    38. 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 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 such 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.''
    39. We believe that the rules proposed in this NPRM will have a 
negligible economic effect on all entities regardless of size. The 
majority of the rule changes proposed in this NPRM include the deletion 
of outdated rules as well as some corrections for typographical errors 
and consistency.
    40. The revision to Sec.  76.616 concerning operation near certain 
aeronautical and marine emergency radio frequencies (i.e. 406.025 MHz) 
should have a minimal or negligible effect on small or large entities 
since all such operations are already well outside of the boundaries 
defined by the proposed rule. It is in the interest of public safety to 
protect the digital search and rescue frequency 406.025 MHz; the 
alternative of not protecting the frequency 406.025 MHz is 
unacceptable.
    41. The revision of Sec.  76.1510 to include signal leakage 
restrictions for open video systems is also in the interest of public 
safety, thus the alternative of non-restriction is unacceptable.
    42. In this NPRM we ask for comment on whether discontinued or 
unused CARS licenses should be forfeited or cancelled. The alternative 
would be to leave the CARS licenses as they are, which would result in 
unused or wasted spectrum as it would not be available for other 
licensees.

[[Page 15424]]

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

    None.

III. Ordering Clauses

    43. Pursuant to the authority contained in Sections 4, 4(i), 157, 
303, 303(g), 303(r), and 307 of the Communications Act of 1934, as 
amended, 47 U.S.C. 154, 154(i), 157, 303, 303(g), 303(r), 307, this 
Notice of Proposed Rule Making is adopted.
    44. The Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center, shall send a copy of this Notice of 
Proposed Rule Making, including the Initial Regulatory Flexibility 
Analysis, to the Chief Counsel for Advocacy of the Small Business 
Administration in accordance with Section 603(a) of the Regulatory 
Flexibility Act, 5 U.S.C. 603(a).
    45. For further information concerning this NPRM, contact Sarah 
Mahmood, (202) 418-7009, or Wayne McKee, (202) 418-2355, of the 
Engineering Division, Media Bureau.

List of Subjects in 47 CFR Parts 76 and 78

    Administrative practice and procedure, Cable television, Reporting 
and recordkeeping requirements.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 47 CFR Parts 76 and 78 of 
Title 47 of the Code of Federal Regulations as follows:

PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE

    1. The authority citation for part 76 continues to read as follows:

    Authority: 47 U.S.C. 151, 152, 153, 154, 301, 302, 303, 303a, 
307, 308, 309, 312, 315, 317, 325, 503, 521, 522, 531, 532, 533, 
534, 535, 536, 537, 543, 544, 544a, 545, 548, 549, 552, 554, 556, 
558, 560, 561, 571, 572, 573.

    2. Section 76.5 is amended by revising paragraph (v) and removing 
the Note to read as follows:


Sec.  76.5  Definitions.

* * * * *
    (v) Subscriber terminal. The cable television system terminal to 
which a subscriber's equipment is connected. Separate terminals may be 
provided for delivery of signals of various classes. Terminal devices 
interconnected to subscriber terminals of a cable system must comply 
with the provisions of part 15 of this Chapter for TV interface 
devices.
* * * * *
    3. Amend Sec.  76.605 as follows:
    a. Paragraph (a) introductory text is revised.
    b. Paragraph (a)(1)(ii) is revised.
    c. Paragraph (a)(6) is revised.
    d. Paragraph (a)(7) is revised.
    e. Note 3 in paragraph (b) is revised.
    The revisions read as follows:


Sec.  76.605  Technical standards.

    (a) The following requirements apply to the performance of a cable 
television system as measured at any subscriber terminal with a matched 
impedance at the termination point or at the output of the modulating 
or processing equipment (generally the headend) of the cable television 
system or otherwise as noted. The requirements are applicable to each 
NTSC or similar video downstream cable television channel in the 
system:
    (1) * * *
    (ii) Cable television systems shall transmit signals to subscriber 
premises equipment on frequencies in accordance with the channel 
allocation plan set forth in the Electronics Industries Association's 
``Cable Television Channel Identification Plan, EIA/CEA-542 Revision A, 
April 2002'' (EIA-542). This incorporation by reference was approved by 
the Director of the Federal Register in accordance with 5 U.S.C. 522(a) 
and 1 CFR Part 51. Cable systems are required to use this channel 
allocation plan for signals transmitted in the frequency range 54 MHz 
to 1002 MHz. Copies of EIA-542 Revision A may be obtained from: Global 
Engineering Documents, 15 Inverness Way East, Englewood, CO., 80112, 1-
800-854-7179, http://www.global.ihs.com. Copies of EIA-542 Revision A 
may be inspected during normal business hours at the following 
locations: Federal Communications Commission, 445 12th Street, SW, 
Washington, DC 20554, or the Office of the Federal Register, 800 North 
Capitol Street, NW., Suite 700, Washington, DC 20001.
* * * * *
    (6) The amplitude characteristic shall be within a range of +/-2 
decibels from 0.75 MHz to 5.0 MHz above the lower boundary frequency of 
the cable television channel, referenced to the average of the highest 
and lowest amplitudes within these frequency boundaries. The amplitude 
characteristic shall be measured at the subscriber terminal.
    (7) The ratio of RF visual signal level to system noise shall not 
be less than 43 decibels. For class I cable television channels, the 
requirements of this section are applicable only to:
* * * * *
    (b) * * *

    Note 3: The requirements of this section shall not apply to 
devices subject to the TV interface device rules under part 15 of 
this chapter.

* * * * *
    4. Section 76.610 is revised to read as follows:


Sec.  76.610  Operation in the frequency bands 108-137 and 225-400 
MHz--scope of application.

    The provisions of Sec. Sec.  76.605(a)(12), 76.611, 76.612, 76.613, 
76.614, 76.616, 76.617, 76.1803 and 76.1804 are applicable to all MVPDs 
(cable and non-cable) transmitting carriers or other signal components 
carried at an average power level equal to or greater than 
10-4 watts across a 25 kHz bandwidth in any 160 microsecond 
period, at any point in the cable distribution system in the frequency 
bands 108-137 and 225-400 MHz for any purpose. Exception: Non-cable 
MVPDs serving less than 1000 subscribers and less than 1000 units do 
not have to comply with Sec.  76.1804(g).
    5. Section 76.616 is revised to read as follows:


Sec.  76.616  Operation near certain aeronautical and marine emergency 
radio frequencies.

    The transmission of carriers or other signal components capable of 
delivering peak power levels equal to or greater than 10-5 
watts at any point in a cable television system is prohibited within 
100 kHz of the two frequencies 121.500 MHz and 406.025 MHz, and is 
prohibited within 50 kHz of the two frequencies 156.800 MHz and 243.000 
MHz.


Sec.  76.618  [Removed]

    6. Section 76.618 is removed.


Sec.  76.619  [Removed]

    7. Section 76.619 is removed.


Sec.  76.620  [Removed]

    8. Section 76.620 is removed.
    9. Section 76.1510 is revised to read as follows:


Sec.  76.1510  Application of certain Title VI provisions.

    The following sections within part 76 shall also apply to open 
video systems; Sec. Sec.  76.71, 76.73, 76.75, 76.77, 76.79, 76.1702, 
and 76.1802 (Equal Employment Opportunity Requirements); Sec. Sec.  
76.503 and 76.504 (ownership restrictions); Sec.  76.981 (negative 
option billing); and Sec. Sec.  76.1300, 76.1301 and 76.1302

[[Page 15425]]

(regulation of carriage agreements); Sec.  76.611 (signal leakage 
restrictions); provided, however, that these sections shall apply to 
open video systems only to the extent that they do not conflict with 
this subpart S. Section 631 of the Communications Act (subscriber 
privacy) shall also apply to open video systems.

PART 78--CABLE TELEVISION RELAY SERVICE

    10. The authority citation for part 78 continues to read as 
follows:

    Authority: Secs. 2, 3, 4, 301, 303, 307, 308, 309, 48 Stat., as 
amended 1064, 1065, 1066, 1081, 1082, 1083, 1084, 1085; 47 U.S.C. 
152, 153, 154, 301, 303, 307, 308, 309.

    11. Section 78.19(f)(2)(ii) is revised to read as follows:


Sec.  78.19  Interference.

* * * * *
    (f) * * *
    (2) * * *
    (ii) Within the rectangular areas defined as follows (vicinity of 
Denver, CO):
Rectangle 1:
    41[deg]30'00'' N. Lat. on the north
    103[deg]10'00'' W. Long. on the east
    38[deg]30'00'' N. Lat. on the south
    106[deg]30'00'' W. Long. on the west

Rectangle 2:
    38[deg]30'00'' N. Lat. on the north
    105[deg]00'00'' W. Long. on the east
    37[deg]30'00'' N. Lat. on the south
    105[deg]50'00'' W. Long. on the west

    Rectangle 3:
    40[deg]08'00'' N. Lat. on the north
    107[deg]00'00'' W. Long. on the east
    39[deg]56'00'' N. Lat. on the south
    107[deg]15'00'' W. Long. on the west
* * * * *
    12. Section 78.27(b)(1) is revised to read as follows:


Sec.  78.27  License conditions.

* * * * *
    (b) * * *
    (1) The licensee of a CARS station shall notify the Commission in 
writing when the station commences operation. Such notification shall 
be submitted on or before the last day of the authorized one year 
construction period; otherwise, the station license shall be 
automatically forfeited.
* * * * *
[FR Doc. 03-7556 Filed 3-28-03; 8:45 am]
BILLING CODE 6712-01-P