[Federal Register Volume 68, Number 166 (Wednesday, August 27, 2003)]
[Proposed Rules]
[Pages 51546-51548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21650]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 25

[IB Docket Nos. 02-34 and 02-54, FCC 03-102]


Satellite License Procedures

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Commission invites comment on revisions 
to the bond requirement for satellite licensees, adopted in the First 
Report and Order in this proceeding. The intended purpose of this 
proceeding is to discourage parties from applying for satellite 
licenses for speculative reasons, without unreasonably discouraging 
applicants who intend to construct and launch their licensed satellite 
systems.

DATES: Comments are due on or before September 26, 2003. Reply comments 
are due on or before October 27, 2003.

ADDRESSES: All filings must be sent to the Commission's Secretary, 
Marlene H. Dortch, Office of the Secretary, Federal Communications 
Commission, The Portals, 445 Twelfth Street, SW., Room TW-A325, 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Steven Spaeth, Satellite Division, 
International Bureau, (202) 418-1539.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Further Notice of Proposed Rulemaking adopted April 23, 2003 and 
released May 19, 2003. The full text of this Commission decision is 
available for inspection and copying during normal business hours in 
the FCC Public Reference Room, 445 Twelfth Street, SW., Room CY-A257, 
Washington, DC 20554. The complete text of this decision may also be 
purchased from the Commission's copy contractor, Qualex International, 
Portals II, 445 Twelfth Street, SW., Room CY-B402, Washington, DC 
20554.
    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, May 1, 1998. 
Comments filed through the ECFS can be sent as an electronic file via 
the Internet to http://www.fcc.gov/e-file/ecfs.html. Generally, only 
one copy of an electronic submission must be filed. If multiple docket 
or rulemaking numbers appear in the caption of this proceeding, 
however, commenters must transmit one electronic copy of the comments 
to each docket or rulemaking number referenced in the caption. In 
completing the transmittal screen, commenters should include their full 
name, Postal Service mailing address, and the applicable docket or 
rulemaking number. Parties may also submit an electronic comment by 
Internet e-mail. To get filing instructions for e-mail comments, 
commenters should send an e-mail to [email protected], and should include 
the following words in the body of the message, ``get form .'' A sample form and directions will be sent in 
reply.
    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.
    Paperwork Reduction Act: This NPRM does not contain any proposed 
new or modified reporting, recordkeeping, or other compliance 
requirements not previously adopted in this proceeding. See Paperwork 
Reduction Act of 1995, Public Law No. 104-13.
    Initial Regulatory Flexibility Analysis: As required by the 
Regulatory Flexibility Act (RFA),\1\ the Commission has prepared this 
present Initial Regulatory Flexibility Analysis (IRFA) of the possible 
significant economic impact on small entities by the policies and rules 
proposed in this Further Notice of Proposed Rulemaking. Written public 
comments are requested on this IRFA. Comments must be identified as 
responses to the IRFA and must be filed by the deadlines for comments 
on the Further Notice of Proposed Rulemaking provided above. The 
Commission will send a copy of the Further Notice of Proposed 
Rulemaking, including this IRFA, to the Chief Counsel for Advocacy of 
the Small Business Administration. See 5 U.S.C. 603(a). In addition, 
the Further Notice of Proposed Rulemaking and IRFA (or summaries 
thereof) will be published in the Federal Register. See id.
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    \1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 through 612, has 
been amended by the Small Business Regulatory Enforcement Fairness 
Act of 1996 (SBREFA), Public Law 104-121, Title II, 110 Stat. 857 
(1996).
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    Need for, and Objectives of, the Proposed Rules. The objective of 
the proposed rules is to discourage parties from filing ``speculative'' 
satellite applications, i.e., applying for a satellite license without 
intending to construct the satellite facilities. These rule revisions 
are needed because speculative satellite applications can delay or 
preclude other parties from obtaining a satellite license and providing 
service to the public.
    Legal Basis. The proposed action is supported by sections 4(i), 
7(a), 303(c), 303(f), 303(g), and 303(r) of the Communications Act of 
1934, as amended, 47 U.S.C. 154(i), 157(a), 303(c), 303(f), 303(g), 
303(r).
    Description and Estimate of the Number of Small Entities to Which 
the Proposed Rules May Apply. The RFA directs agencies to provide a 
description

[[Page 51547]]

of, and, where feasible, an estimate of, the number of small entities 
that may be affected by the proposed rules, if adopted.\2\ The RFA 
generally defines the term ``small entity `` as having the same meaning 
as the terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \3\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\4\ 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).\5\ A small 
organization is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
\6\ Nationwide, as of 1992, there were approximately 275,801 small 
organizations.\7\ ``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.'' \8\ As of 1992, there were approximately 85,006 such 
jurisdictions in the United States.\9\ This number includes 38,978 
counties, cities, and towns; of these, 37,566, or 96 percent, have 
populations of fewer than 50,000.\10\ The Census Bureau estimates that 
this ratio is approximately accurate for all governmental entities. 
Thus, of the 85,006 governmental entities, we estimate that 81,600 (91 
percent) are small entities. Below, we further describe and estimate 
the number of small entity licensees that may be affected by the 
proposed rules, if adopted.
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    \2\ 5 U.S.C. 603(b)(3).
    \3\ Id. 601(6).
    \4\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small business concern'' in 15 U.S.C. 632). Pursuant to the 
RFA, the statutory definition of a small business applies ``unless 
an agency, after consultation with the Office of Advocacy of the 
Small Business Administration and after opportunity for public 
comment, establishes one or more definitions of such term which are 
appropriate to the activities of the agency and publishes such 
definition(s) in the Federal Register.'' 5 U.S.C. 601(3).
    \5\ Small Business Act, 15 U.S.C. 632 (1996).
    \6\ 5 U.S.C. 601(4).
    \7\ 1992 Economic Census, U.S. Bureau of the Census, Table 6 
(special tabulation of data under contract to Office of Advocacy of 
the U.S. Small Business Administration).
    \8\ 5 U.S.C. 601(5).
    \9\ U.S. Dept. of Commerce, Bureau of the Census, ``1992 Census 
of Governments.''
    \10\ Id.
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    The rules proposed in this Notice of Proposed Rulemaking would 
affect satellite operators, if adopted. The Commission has not 
developed a definition of small entities applicable to satellite 
operators. Therefore, the applicable definition of small entity is 
generally the definition under the SBA rules applicable to Satellite 
Telecommunications.\11\ This definition provides that a small entity is 
expressed as one with $11.0 million or less in annual receipts.\12\ 
1997 Census Bureau data indicate that, for 1997, 273 satellite 
communication firms had annual receipts of under $10 million. In 
addition, 24 firms had receipts for that year of $10 million to 
$24,999,990.\13\
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    \11\ ``This industry comprises establishments primarily engaged 
in providing point-to-point telecommunications services to other 
establishments in the telecommunications and broadcasting industries 
by forwarding and receiving communications signals via a system of 
satellites or reselling satellite telecommunications.'' Small 
Business Administration, 1997 NAICS Definitions, NAICS 513340.
    \12\ 13 CFR 120.121, NAICS code 513340.
    \13\ U.S. Census Bureau, 1997 Economic Census, Subject Service: 
Information, ``Establishment and Firm Size,'' Table 4, NAICS 513340 
(Issued Oct. 2000).
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    In addition, Commission records reveal that there are approximately 
240 space station operators licensed by this Commission. We do not 
request or collect annual revenue information, and thus are unable to 
estimate the number of licensees that would constitute a small business 
under the SBA definition. Small businesses may not have the financial 
ability to become space station licensees because of the high 
implementation costs associated with satellite systems and services.
    Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements. In this Further Notice of Proposed Rulemaking, 
the Commission invites comment on whether to revise the bond 
requirement adopted in the First Report and Order in this proceeding. 
None of the proposed revisions are intended to increase the projected 
reporting, record keeping, or other compliance requirements associated 
with the bond requirement.
    Steps Taken to Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered. The RFA requires an 
agency to describe any significant alternatives that it has considered 
in reaching its proposed approach, which may include the following four 
alternatives (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 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. 5 
U.S.C. 603(c).
    We have attempted not to foreclose any option. In addition, we 
invite comment on allowing licensees to create an escrow account as an 
alternative to a bond requirement. We also invite interested parties to 
propose alternatives for a standard for a waiver of the bond 
requirement for licensees providing public safety services, including 
small entities.
    Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules. None.
    Summary of Further Notice of Proposed Rulemaking: In the First 
Report and Order in this proceeding, the Commission adopted a bond 
requirement for new satellite licensees. Under this requirement, 
licensees of geostationary satellite orbit (GSO) satellites must post a 
bond of $5 million, payable upon failure to meet a milestone. Licensees 
of non-geostationary satellite orbit (NGSO) satellite systems must post 
a bond of $7.5 million. Non-U.S.-licensed satellite operators seeking 
access to the U.S. market through a letter of intent must also post 
bonds in these amounts.
    The Commission adopted these bond amounts on an interim basis 
pending additional comment. Accordingly, parties are invited to comment 
on the bond amount. Parties are also invited to comment on whether to 
allow satellite licensees to create an escrow account in lieu of 
posting a bond. Finally, the Commission solicited comment on revising 
the bond requirements for non-U.S.-licensed satellite operators to be 
consistent with the requirements for U.S. licensees.

Ordering Clauses

    Accordingly, it is ordered, pursuant to sections 4(i), 7(a), 
303(c), 303(f), 303(g), and 303(r) of the Communications Act of 1934, 
as amended, 47 U.S.C. 154(i), 157(a), 303(c), 303(f), 303(g), 303(r), 
that this Further Notice of Proposed Rulemaking in IB Docket No. 02-34 
is hereby adopted.
    It is further ordered that the Consumer Information Bureau, 
Reference Information Center, shall send a copy of this Further Notice 
of Proposed Rulemaking in IB Docket No. 02-34, including the Initial 
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of 
the Small Business Administration.


[[Page 51548]]


Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 03-21650 Filed 8-26-03; 8:45 am]
BILLING CODE 6712-01-P