[Federal Register Volume 69, Number 103 (Thursday, May 27, 2004)]
[Proposed Rules]
[Pages 30252-30277]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11322]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 20, and 43

[WC Docket No. 04-141, FCC 04-81]


Local Telephone Competition and Broadband Reporting

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Federal Communications Commission seeks 
comment about whether it should extend and modify the FCC Form 477 
local competition and broadband data gathering program, established by 
the Commission's Data Gathering Order published Wednesday, April 12, 
2000 (65 FR 19675).

DATES: Comments are due on or before June 28, 2004, and reply comments 
are due on or before July 28, 2004. Written comments on the proposed 
information collections must be submitted by the public, Office of 
Management and Budget (OMB), and other interested parties on or before 
July 28, 2004.

ADDRESSES: All filings must be sent to the Commission's Secretary, 
Marlene H. Dortch, Office of the Secretary, Federal Communications 
Commission, 445 12th Street, SW., Washington, DC 20554. In addition to 
filing comments with the Secretary, a copy of any Paperwork Reduction 
Act (PRA) comments on the information collection(s) contained herein 
should be submitted to Judith B. Herman, Federal Communications 
Commission, Room 1-C804, 445 12th Street, SW., Washington, DC 20554, or 
via the Internet to [email protected], and to Kristy L. LaLonde, 
OMB Desk Officer, Room 10234 NEOB, 725 17th Street, NW., Washington, DC 
20503 via the Internet to [email protected] or by fax to 
(202) 395-5167. Parties are also requested to send two additional paper 
copies of their filings to Mikelle Mora, Industry Analysis and 
Technology Division, 455 Twelfth Street, SW., Sixth Floor, Washington 
DC 20554.

FOR FURTHER INFORMATION CONTACT: Ellen Burton, Assistant Chief, James 
Eisner, Senior Economist, or Thomas J. Beers, Deputy Chief, Industry 
Analysis and Technology Division, Wireline Competition Bureau, at (202) 
418-0940. For additional information concerning the information 
collection(s) contained in this document, contact Judith B. Herman at 
(202) 418-0214, or via the Internet at [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking (NPRM) in WC Docket No. 04-141, adopted on March 
31, 2004, and released on April 16, 2004. The full text of this 
document is available on the Commission's Web site Electronic Comment 
Filing System and for public inspection Monday through Thursday from 8 
a.m. to 4:30 p.m. and Friday from 8 a.m. to 11:30 a.m. in the FCC 
Reference Center, Room CY-A257, 445 Twelfth Street, SW., Washington, DC 
20554. Alternative formats are available to persons with disabilities 
by contacting Brian Millin at (202) 418-7426 or TTY (202) 418-7365. The 
full text of the NPRM may also be purchased from the Commission's 
duplicating contractor, Qualex International, Room CY-B402, 445 Twelfth 
Street, SW., Washington, DC 20554, telephone (202) 863-2893, facsimile 
(202) 863-2898, or e-mail at [email protected]. This NPRM contains 
proposed information collection(s) subject to the Paperwork Reduction 
Act of 1995 (PRA). It has been submitted to the Office of Management 
and Budget (OMB) for review under the PRA. OMB, the general public, and 
other Federal agencies are invited to comment on the proposed 
information collections contained in this proceeding.

Paperwork Reduction Act

    This NPRM contains a proposed information collection. The 
Commission, as part of its continuing effort to reduce paperwork 
burdens, invites the general public and the Office of Management and 
Budget (OMB) to

[[Page 30253]]

comment on the information collection(s) 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 notification of action is 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.
    OMB Control Number: 3060-0816.
    Title: ``Local Telephone Competition and Broadband Reporting, WC 
Docket No. 04-141''.
    Form No.: FCC Form 477.
    Type of Review: Revision of Existing Collection.
    Respondents: Business or Not-for-profit institutions, including 
small businesses.
    Number of Respondents: Up to 478.
    Estimated Time Per Filer Per Year: 122.2 person-hours.
    Total Annual Burden: Up to 58,418 person-hours.
    Cost to Respondents: $0.
    These estimates are for the proposed information collection set out 
in the Draft FCC Form 477 that appears at the end of this Summary. The 
NPRM additionally invites comment on lowering or eliminating one or 
more of the current mandatory reporting thresholds and on collecting 
more detailed data about high-speed connections in service in 
particular ZIP Codes. By comparison to the above estimate, the 
estimated Total Annual Burden would be 7 percent larger if the current 
mandatory threshold to report broadband data were eliminated. The 
estimated Total Annual Burden would be 36 percent higher if the current 
mandatory thresholds to report broadband data and local telephone data 
were eliminated. If the current mandatory reporting thresholds were 
retained, the estimated Total Annual Burden would be 30 percent higher 
if filers were required to report counts of broadband connections in 
service, by technology, in particular ZIP Codes, and the estimated 
Total Annual Burden would be 109 percent higher if filers were required 
to report counts of broadband connections in service, by technology and 
by speed, in particular ZIP Codes. If the current mandatory thresholds 
to report broadband and local telephone data were eliminated and filers 
were required to report counts of broadband connections in service, by 
technology and by speed, in particular ZIP Codes, the estimated Total 
Annual Burden would be 132 percent higher.
    Needs and Uses: The information collection is a proposed 
modification of an already authorized program. As before, the program 
will be used by the Commission to gather information on the state of 
the development of local telephone competition and broadband 
deployment. Without such information, the Commission faces significant 
difficulty in assessing the development of these markets and, 
therefore, is less able to fulfill its statutory responsibilities in 
accordance with the Communications Act of 1934, as amended.

Summary of the Notice of Proposed Rulemaking

    1. In the Data Gathering Order, the Commissions established a 
reporting program (using the FCC Form 477) to collect basic information 
about two critical areas of the communications industry: the deployment 
of broadband services and the development of local telephone service 
competition. In this Notice of Proposed Rulemaking (Notice), we seek 
comment about specific proposals to improve the program, including 
gathering more granular data from broadband service providers and 
extending the program for five years beyond its currently designated 
sunset in March 2005. The information collected in this program helps 
the Commission and the public understand the extent of local telephone 
competition and broadband deployment, which is important to the 
nation's economic, educational, and social well-being. The proposals on 
which we seek comment here attempt to further that goal while 
minimizing burdens on marketplace competitors and innovators.
    2. Form 477 includes separate sections on broadband deployment, 
local telephone service competition, and mobile telephone service 
provision. Entities are required to report only when they meet or 
exceed defined reporting thresholds and, then, are only required to 
complete those portions of the form for which they meet or exceed the 
reporting thresholds. Entities that meet a threshold file data on a 
state-by-state basis. Facilities-based providers of broadband 
connections and local exchange carriers (LECs) also report a list of 
ZIP Codes in which they serve end users, for each state for which they 
complete a form. In the case of broadband connections, reporting 
entities include incumbent and competitive LECs, cable companies, 
operators of terrestrial and satellite wireless facilities, 
municipalities, and any other facilities-based provider of broadband 
connections to end users.
    3. The Commission's reports based on Form 477 data have 
demonstrated steady progress in the development of local telephone 
service competition as well as nationwide broadband deployment. In 
section 706 reports, the Commission has concluded that broadband is 
being deployed in a reasonable and timely fashion. However, the 
Commission has also recognized that there are certain areas where 
additional information would be extremely useful in identifying and 
tracking broadband developments, including rural areas. Also the 
emergence of competing platforms in recent years to deliver high-speed 
services, and a steady improvement in mass-market acceptance of 
services suggest that refining our reporting requirements for broadband 
providers would yield useful information to inform policymaking in this 
important, rapidly changing area.
    4. Broadband Reporting. We propose extending the Form 477 program 
for five years beyond the current scheduled sunset to support our study 
of broadband deployment pursuant to section 706 of the 1996 Act. We 
believe that our efforts to assess broadband availability have been 
substantially aided by analysis of the data collected by the Form 477 
to date. We note, however, that we and reporting entities have now had 
four years' experience with the Form 477 program. Based on our 
experience with the Form 477 program to date, we propose to expand the 
program's scope to capture some additional data that could allow us to 
more precisely analyze availability (i.e., beyond the subscribership 
proxy utilized by the current version of the Form 477). We propose to 
implement the modified reporting requirements with the filing of 
December 31, 2004 data on March 1, 2005, subject to OMB approval of the 
revised form. Our proposed broadband reporting revisions, set out in 
the draft Form 477 and instructions, include: more detailed reporting 
about the deployment of technologies to serve mass-market broadband end 
users, particularly cable modem and DSL connections; more detailed 
tracking, over time, of marketplace adoption of increasingly fast 
broadband connections; and more detailed tracking of marketplace

[[Page 30254]]

adoption of new broadband technologies. We seek comment on the 
potential benefits and burden of these revisions.
    5. With respect particularly to the proposed categorization of 
broadband connections by technology and by information transfer rates 
set out in the draft Form 477 and instructions, we seek comment on the 
appropriateness of the proposed categories from technical and 
marketplace perspectives. We also seek specific comment on whether we 
should modify our reporting instructions to require filers to 
categorize broadband connections according to the information transfer 
rates actually observed by end users and what operational issues, if 
any, this would pose. Ideally, providers would accurately inform 
consumers about the range of broadband service options available in the 
marketplace, including actual service ``speeds,'' and our information 
collection similarly would track actual provision of particular speeds 
in the marketplace. Are there any existing, administratively workable 
industry standards or practices for measuring typical or actual speeds 
delivered to end users (as opposed to peak or optimum speeds)? Is there 
an administratively feasible way to have broadband providers measure 
and report speeds that are achieved on facilities within those 
providers' control--specifically, from the end user premises to the 
edge of the provider's network? What would be the pros and cons of 
modifying our reporting requirements to require the provision of such 
information?
    6. Local Service Competition Reporting. We also believe that it is 
important to continue to monitor local service competition 
developments, particularly following the recent conclusion of our 
section 271 proceedings allowing the Bell Operating Companies (BOCs) 
full entry into all domestic long distance markets. We propose to 
extend the Form 477 program to collect wireline and mobile local 
telephone data for five years beyond the currently-scheduled sunset in 
March 2005. While we believe that the amount and quality of local 
telephone competition data currently collected by the Form 477 are 
generally adequate for monitoring local service competition 
developments, we note that consumers increasingly can choose among 
telephone service offerings that permit both local and long distance 
calling, often for a single price. We therefore propose, as set out in 
the draft Form 477 and instructions, to require carriers to report the 
extent to which they are also the end user's default interstate long 
distance carrier. We seek comment on the benefits and burdens of these 
proposed modifications. We also seek comment on whether clarification 
of current requirements, as also set out in the draft Form 477 and 
instructions, is needed to assist filers in completing these parts of 
the form. We also welcome comments addressing any and all aspects of 
the local telephone parts of Form 477, including substantive 
provisions.
    7. Reporting High-Speed Connections by Technology and ``Speed 
Tiers.'' We seek comment on whether we should require filers to specify 
the number of high-speed connections, by technology, in particular ZIP 
Codes. We also seek comment on whether we should require filers to 
report, for each ZIP Code, the number of connections provided in 
various ``speed tiers,'' and whether that information should be 
reported separately by technology. This information `` alone and in 
combination with Census data `` would better enable us to track the 
marketplace acceptance of broadband. It would add yet more detail to 
the picture of competition between established providers of cable modem 
and DSL-based services, and emerging providers. Commenters should 
specifically address whether the benefits that would come from this 
reporting requirement would outweigh the additional costs that may be 
imposed on carriers. We also invite comments that discuss, with 
specificity, ways in which we could more closely align our broadband 
reporting methodology with the ways facilities-based broadband 
providers typically measure availability for the financial community 
and internal purposes, and thereby obtain a more detailed picture of 
competitive broadband deployment and service availability.
    8. Reporting Thresholds. We seek comment on whether eliminating or 
lowering the reporting threshold for broadband data (i.e., at least 250 
high-speed lines (or wireless channels) in a state connecting end users 
to the Internet) would yield significantly improved data about 
broadband development, particularly in rural areas. Commenters that 
support lowering the threshold should specify what the threshold should 
be. We believe that the current data collection misses several hundred 
small facilities-based providers, e.g., rural incumbent LECs, wireless 
Internet service providers, and municipalities. Also, we note that the 
few small facilities-based providers that currently file Form 477 on a 
voluntary basis find that only a few questions apply to their 
situations. This suggests that, as a practical matter, additional 
reporting burdens for many small providers would be small, which was 
not evident when the Commission initiated the Form 477 data collection. 
We therefore seek comment on the benefits of the more complete picture 
of broadband deployment that would be achieved if all facilities-based 
providers were required to report broadband data, and request that 
parties identify with specificity any associated burdens. We encourage 
any party that argues that we should adopt a sampling methodology, as 
an alternative to eliminating the broadband reporting threshold, to 
provide a detailed and complete sample design.
    9. We seek comment on whether we should adopt a lower threshold for 
reporting local telephone competition data, and if so, what that 
threshold should be. Commenters should address whether a specific lower 
threshold would yield an improved picture of local telephone service 
competition, particularly in less densely populated states, justify 
their proposed threshold, and identify with specificity any associated 
burdens.
    10. Confidentiality Issues. We seek comment on whether we could 
modify our policies regarding publication of data without jeopardizing 
legitimate claims of confidentiality. In this Notice, we do not propose 
to change existing policy regarding the overall protection we afford 
Form 477 data in connection with competitively sensitive information. 
Given the entry of competitive LECs, wireless providers, and others 
into local telephone service markets, the proliferating deployment of 
broadband services nationwide, and the dynamism of communications 
markets generally, however, we seek comment on whether historical 
aggregated information from our data collection remains competitively 
sensitive after the passage of time, such as a year or two. For 
example, aggregated data as of June 30, 2003 that we masked (by 
substituting an asterisk for the true value) in our most recent 
publications, may not be considered competitively sensitive after June 
30, 2005. We seek comment on whether a comparable report published 
after June 30, 2005 could include the true values of these aggregated 
June 30, 2003 data without causing competitive harm to any Form 477 
filer. If so, should our publication procedures be modified so that the 
maximum amount of non-competitively sensitive Form 477 information is 
made publicly available in a timely manner, for use by policymakers, 
academic researchers and industry analysts, and other members of the 
general public? Commenters should address whether

[[Page 30255]]

this change in publication procedures would undermine companies' 
willingness to answer our broadband data requests fully and promptly, 
with a minimum of procedural challenges.
    11. Sharing Data with State Commissions. We seek comment on whether 
we should modify any of our other policies regarding data use. In the 
Data Gathering Order, the Commission indicated that it intended to 
share state-specific Form 477 data, subject to appropriate conditions, 
with state commissions. It noted that such sharing could advance useful 
regulatory review of developing local service competition and broadband 
deployment trends. This would serve the public interest generally, but 
would also assist this Commission particularly by encouraging 
additional expert review of the accuracy and completeness of submitted 
information and its use in our reports. To date, we have entered into 
ten arrangements with state agencies, all of which have agreed to our 
confidentiality requirements. We propose to continue such arrangements 
with state agencies in the future. We invite comment about the value of 
this program.
    12. Impact on Small Entities and Other Issues. We seek comment on 
all the changes discussed in this Notice, including all specific 
changes set out in the draft Form 477 and instructions. We also seek 
comment on our continuing use of reporting thresholds for both local 
telephone and broadband data. We are coordinating possible small 
business size standard issues with the U.S. Small Business 
Administration. We seek comment on ways by which we can limit burdens 
imposed on providers, prevent the dissemination of competitively-
sensitive information, and limit our data collection, wherever 
possible, to information that providers routinely keep in the ordinary 
course of business or that is easily derived from their records. We 
look forward to working closely with all participants to minimize 
burdens wherever possible, particularly with regard to smaller 
providers that may have limited resources.
    13. Finally, we intend to explore whether to conduct or commission 
a consumer survey to develop a better understanding of consumer 
adoption and usage of broadband services. We welcome input on what 
questions should be included in such a survey.

Procedural Matters

Initial Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act (RFA), 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 the Notice of Proposed 
Rulemaking in WC Docket No. 04-141 (Notice). 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 this 
Notice, which are set out in paragraph 16 of the Notice. The Commission 
will send a copy of this Notice, including this IRFA, to the Chief 
Counsel for Advocacy of the Small Business Administration (SBA). In 
addition, this Notice and IRFA (or summaries thereof) will be published 
in the Federal Register.

I. Need for, and Objectives of, the Proposed Action

    2. The Commission has initiated this Notice to seek comment about 
specific proposals to improve its Form 477 local competition and 
broadband data gathering program and to extend the program for five 
years beyond its currently designated sunset in March 2005. The 
Commission adopted the Form 477 in spring 2000 to help the Commission 
and the public understand the extent of local telephone service 
competition and broadband services deployment, which is important to 
the nation's economic, educational, and social well-being. The 
proposals in this Notice on which the Commission seeks comment attempt 
to further that goal while minimizing burdens on marketplace 
competitors and innovators. In particular, the Commission asks whether 
collecting more granular data from broadband service providers would 
more effectively support its study of broadband deployment pursuant to 
section 706 of the 1996 Act. The Commission also seeks to assist filers 
of local telephone data by clarifying certain current requirements.

II. Legal Basis

    3. The legal basis for the action as proposed for this rulemaking 
is contained in sections 1-5, 10, 11, 201-205, 215, 218-220, 251-271, 
303(r), 332, 403, 502, and 503 of the Communications Act of 1934, as 
amended, 47 U.S.C. 151-155, 160, 161, 201-205, 215, 218-220, 251-271, 
303(r), 332, 403, 502, and 503 and pursuant to section 706 of the 
Telecommunications Act of 1996, 47 U.S.C. 157 nt.

III. Description and Estimate of the Number of Small Entities to Which 
the Proposed Action May Apply

    4. 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. To estimate the number of 
small entities that may be affected by the proposed rules, we first 
consider the statutory definition of ``small entity'' under the RFA. 
The RFA generally defines ``small entity'' as having the same meaning 
as the term ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' In addition, the term ``small business'' 
has the same meaning as the term ``small business concern'' under the 
Small Business Act, unless the Commission has developed one or more 
definitions that are appropriate to its activities. Under the Small 
Business Act, a ``small business concern'' is one that: (1) Is 
independently owned and operated; (2) is not dominant in its field of 
operation; and (3) meets any additional criteria established by the 
SBA.
    5. The most reliable source of information regarding the total 
numbers of certain common carrier and related providers nationwide, as 
well as the number of commercial wireless entities, appears to be the 
data that the Commission publishes in its Trends in Telephone Service 
report. The SBA has developed small business size standards for 
wireline and wireless small businesses within the three commercial 
census categories of Wired Telecommunications Carriers, Paging, and 
Cellular and Other Wireless Telecommunications. Under these categories, 
a business is small if it has 1,500 or fewer employees. Below, using 
the above size standards and others, we discuss the total estimated 
numbers of small businesses that might be affected by our actions.
    6. We have included small incumbent LECs in this present RFA 
analysis. As noted above, a ``small business'' under the RFA is one 
that, inter alia, meets the pertinent small business size standard 
(e.g., a wired telecommunications carrier having 1,500 or fewer 
employees), and ``is not dominant in its field of operation.'' The 
SBA's Office of Advocacy contends that, for RFA purposes, small 
incumbent LECs are not dominant in their field of operation because any 
such dominance is not ``national'' in scope. We have therefore included 
small incumbent LECs in this RFA analysis, although we emphasize that 
this RFA action has no effect on Commission analyses and

[[Page 30256]]

determinations in other, non-RFA contexts.
    7. Wired Telecommunications Carriers. The SBA has developed a small 
business size standard for Wired Telecommunications Carriers, which 
consists of all such companies having 1,500 or fewer employees. 
According to Census Bureau data for 1997, there were 2,225 firms in 
this category, total, that operated for the entire year. Of this total, 
2,201 firms had employment of 999 or fewer employees, and an additional 
24 firms had employment of 1,000 employees or more. Thus, under this 
size standard, the great majority of firms can be considered small.
    8. Incumbent Local Exchange Carriers (LECs). Neither the Commission 
nor the SBA has developed a size standard for small businesses 
specifically applicable to incumbent local exchange services. The 
closest applicable size standard under SBA rules is for Wired 
Telecommunications Carriers. Under that size standard, such a business 
is small if it has 1,500 or fewer employees. According to Commission 
data, 1,337 carriers reported that they were engaged in the provision 
of local exchange services. Of these 1,337 carriers, an estimated 1,032 
have 1,500 or fewer employees and 305 have more than 1,500 employees. 
Consequently, the Commission estimates that most providers of incumbent 
local exchange service are small businesses that may be affected by the 
rules and policies adopted herein.
    9. Competitive Local Exchange Carriers (CLECs). Neither the 
Commission nor the SBA has developed a size standard for small 
businesses specifically applicable to providers of competitive exchange 
services or to competitive access providers or to ``Other Local 
Exchange Carriers,'' all of which are discrete categories under which 
TRS data are collected. The closest applicable size standard under SBA 
rules is for Wired Telecommunications Carriers. Under that size 
standard, such a business is small if it has 1,500 or fewer employees. 
According to Commission data, 609 companies reported that they were 
engaged in the provision of either competitive access provider services 
or competitive local exchange carrier services. Of these 609 companies, 
an estimated 458 have 1,500 or fewer employees and 151 have more than 
1,500 employees. In addition, 51 carriers reported that they were 
``Other Local Exchange Carriers.'' Of the 51 ``Other Local Exchange 
Carriers,'' an estimated 50 have 1,500 or fewer employees and one has 
more than 1,500 employees. Consequently, the Commission estimates that 
most providers of competitive local exchange service, competitive 
access providers, and ``Other Local Exchange Carriers'' are small 
entities that may be affected by the rules and policies adopted herein.
    10. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA has developed a size standard for small businesses specifically 
applicable to interexchange services. The closest applicable size 
standard under SBA rules is for Wired Telecommunications Carriers. 
Under that size standard, such a business is small if it has 1,500 or 
fewer employees. According to Commission data, 261 companies reported 
that their primary telecommunications service activity was the 
provision of interexchange services. Of these 261 companies, an 
estimated 223 have 1,500 or fewer employees and 38 have more than 1,500 
employees. Consequently, the Commission estimates that the majority of 
interexchange service providers are small entities that may be affected 
by the rules and policies adopted herein.
    11. Cellular Licensees. The SBA has developed a small business size 
standard for Cellular and Other Wireless Telecommunication, which 
consists of all such firms having 1,500 or fewer employees. According 
to Census bureau data for 1997, there were 977 firms in this category, 
total, that operated for the entire year. Of this total, 965 firms had 
employment of 999 or fewer employees, and an additional 12 firms had 
employment of 1,000 employees or more. Thus under this size standard, 
the majority of firms can be considered small.
    12. Broadband Personal Communications Service. The broadband 
Personal Communications Service (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 $40 
million or less in the three previous calendar years. For Block F, an 
additional classification for ``very small business'' was added and is 
defined as an entity that, together with its affiliates, has average 
gross revenues of not more than $15 million for the preceding three 
calendar years. These standards defining ``small entity'' in the 
context of broadband PCS auctions have been approved by the SBA. No 
small businesses, within the SBA-approved small business size standards 
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. On March 23, 
1999, the Commission re-auctioned 347 C, D, E, and F Block licenses. 
There were 48 small business winning bidders. On January 26, 2001, the 
Commission completed the auction of 422 C and F Broadband PCS licenses 
in Auction No. 35. Of the 35 winning bidders in this auction, 29 
qualified as ``small'' or ``very small'' businesses. Based on this 
information, the Commission concludes that the number of small 
broadband PCS licenses will include the 90 winning C Block bidders, the 
93 qualifying bidders in the D, E, and F Block auctions, the 48 winning 
bidders in the 1999 re-auction, and the 29 winning bidders in the 2001 
re-auction, for a total of 260 small entity broadband PCS providers, as 
defined by the SBA small business size standards and the Commission's 
auction rules. Consequently, the Commission estimates that 260 
broadband PCS providers are small entities that may be affected by the 
rules and policies adopted herein.
    13. Narrowband Personal Communications Services. To date, two 
auctions of narrowband personal communications services (PCS) licenses 
have been conducted. For purposes of the two auctions that have already 
been held, ``small businesses'' were entities with average gross 
revenues for the prior three calendar years of $40 million or less. 
Through these auctions, the Commission has awarded a total of 41 
licenses, out of which 11 were obtained by small businesses. To ensure 
meaningful participation of small business entities in future auctions, 
the Commission has adopted a two-tiered small business size standard in 
the Narrowband PCS Second Report and Order. 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. The SBA has 
approved these small business size standards. In the future, the 
Commission will auction 459 licenses to serve Metropolitan Trading 
Areas (MTAs) and 408 response channel licenses. There is also one 
megahertz of narrowband PCS spectrum that has been held in reserve and 
that the Commission has not yet decided to release for

[[Page 30257]]

licensing. The Commission cannot predict accurately the number of 
licenses that will be awarded to small entities in future actions. 
However, four of the 16 winning bidders in the two previous narrowband 
PCS auctions were small businesses, as that term was defined under the 
Commission's Rules. The Commission assumes, for purposes of this 
analysis, 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.
    14. 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 
small business size standard for 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 small business 
size standard under the SBA rules applicable to ``Cellular and Other 
Wireless Telecommunications'' companies. This standard provides that 
such a company is small if it employs no more than 1,500 persons. 
According to Census Bureau data for 1997, there were 977 firms in this 
category, total, that operated for the entire year. Of this total, 965 
firms had employment of 999 or fewer employees, and an additional 12 
firms had employment of 1,000 employees or more. If this general ratio 
continues in the context of Phase I 220 MHz licensees, the Commission 
estimates that nearly all such licensees are small businesses under the 
SBA's small business size standard.
    15. 220 MHz Radio Service--Phase II Licensees. The 220 MHz service 
has both Phase I and Phase II licenses. The Phase II 220 MHz service is 
a new service, and is subject to spectrum auctions. In the 220 MHz 
Third Report and Order, we adopted a small business size standard for 
``small'' and ``very small'' businesses for purposes of determining 
their eligibility for special provisions such as bidding credits and 
installment payments. This small business size standard indicates that 
a ``small business'' is 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 
an entity that, together with its affiliates and controlling 
principals, has average gross revenues that do not exceed $3 million 
for the preceding three years. The SBA has approved these small 
business size standards. Auctions of Phase II licenses commenced on 
September 15, 1998, and closed on October 22, 1998. In the first 
auction, 908 licenses were auctioned in three different-sized 
geographic areas: three nationwide licenses, 30 Regional Economic Area 
Group (EAG) Licenses, and 875 Economic Area (EA) Licenses. Of the 908 
licenses auctioned, 693 were sold. Thirty-nine small businesses won 
licenses in the first 220 MHz auction. The second auction included 225 
licenses: 216 EA licenses and 9 EAG licenses. Fourteen companies 
claiming small business status won 158 licenses.
    16. Rural Radiotelephone Service. The Commission has not adopted a 
size standard for small businesses specific to the Rural Radiotelephone 
Service. A significant subset of the Rural Radiotelephone Service is 
the Basic Exchange Telephone Radio System (BETRS). The Commission uses 
the SBA's small business size standard applicable to ``Cellular and 
Other Wireless Telecommunications,'' i.e., an entity employing no more 
than 1,500 persons. There are approximately 1,000 licensees in the 
Rural Radiotelephone Service, and the Commission estimates that there 
are 1,000 or fewer small entity licensees in the Rural Radiotelephone 
Service that may be affected by the rules and policies adopted herein.
    17. Air-Ground Radiotelephone Service. The Commission has not 
adopted a small business size standard specific to the Air-Ground 
Radiotelephone Service. We will use SBA's small business size standard 
applicable to ``Cellular and Other Wireless Telecommunications,'' i.e., 
an entity employing no more than 1,500 persons. There are approximately 
100 licensees in the Air-Ground Radiotelephone Service, and we estimate 
that almost all of them qualify as small under the SBA small business 
size standard.
    18. Fixed Microwave Services. Fixed microwave services include 
common carrier, private operational-fixed, and broadcast auxiliary 
radio services. 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 created a size standard for a small business 
specifically with respect to fixed microwave services. For purposes of 
this analysis, the Commission uses the SBA small business size standard 
for the category ``Cellular and Other Telecommunications,'' which is 
1,500 or fewer employees. The Commission does not have data specifying 
the number of these licensees that have more than 1,500 employees, and 
thus are unable at this time to estimate with greater precision the 
number of fixed microwave service licensees that would qualify as small 
business concerns under the SBA's small business size standard. 
Consequently, the Commission estimates that there are up to 22,015 
common carrier fixed licensees and up to 61,670 private operational-
fixed licensees and broadcast auxiliary radio licensees in the 
microwave services that may be small and may be affected by the rules 
and policies adopted herein. We noted, however, that the common carrier 
microwave fixed licensee category includes some large entities.
    19. Offshore Radiotelephone Service. This service operates on 
several UHF television broadcast channels that are not used for 
television broadcasting in the coastal areas of states bordering the 
Gulf of Mexico. There are presently approximately 55 licensees in this 
service. We are unable to estimate at this time the number of licensees 
that would qualify as small under the SBA's small business size 
standard for ``Cellular and Other Wireless Telecommunications'' 
services. Under that SBA small business size standard, a business is 
small if it has 1,500 or fewer employees.
    20. Wireless Communications Services. This service can be used for 
fixed, mobile, radiolocation, and digital audio broadcasting satellite 
uses. The Commission established small business size standards for the 
wireless communications services (WCS) auction. A ``small business'' is 
an entity with average gross revenues of $40 million for each of the 
three preceding years, and a ``very small business'' is an entity with 
average gross revenues of $15 million for each of the three preceding 
years. The SBA has approved these small business size standards. 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 by this analysis includes these eight entities.
    21. Satellite Services. The SBA has developed a small business size 
standard for Satellite Telecommunications, which consists of all such 
firms having $12.5 million or

[[Page 30258]]

less in annual receipts. According to Census Bureau data for 1997, in 
this category there was a total of 324 firms that operated for the 
entire year. Of this total, 273 firms had annual receipts of under $10 
million, and an additional twenty-four firms had receipts of $10 
million to $24,999,999. Thus, under this size standard, the majority of 
firms can be considered small.
    22. In addition to the estimates provided above, we consider 
certain additional entities that may be affected by the data collection 
from broadband service providers. Because section 706 requires us to 
monitor the deployment of broadband regardless of technology or 
transmission media employed, we anticipate that some broadband service 
providers will not provide telephone service. Accordingly, we describe 
below other types of firms that may provide broadband services, 
including cable companies, MDS providers, and utilities, among others.
    23. Cable Television Relay Service. This service includes 
transmitters generally used to relay cable programming within cable 
television system distribution systems. The SBA has defined a small 
business size standard for Cable and other Program Distribution, 
consisting of all such companies having annual receipts of no more than 
$12.5 million. According to Census Bureau data for 1997, there were 
1,311 firms in the industry category Cable and Other Program 
Distribution, total, that operated for the entire year. Of this total, 
1,180 firms had annual receipts of $10 million or less, and an 
additional 52 firms had receipts of $10 million or more but less than 
$25 million. Thus, under this standard, we estimate that the majority 
of providers in this service category are small businesses that may be 
affected by the rules and policies proposed in the Notice.
    24. Cable System Operators (Rate Regulation Standard). The 
Commission has developed, with SBA approval, its own definition of a 
small cable system operator for 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 1,439 cable operators that qualified as 
small cable companies at the end of 1995. Since 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 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.
    25. Cable System Operators (Telecom Act Standard). 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 percent 
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.
    26. Multipoint Distribution Service, Multichannel Multipoint 
Distribution Service, and ITFS. Multichannel Multipoint Distribution 
Service (MMDS) systems, often referred to as ``wireless cable,'' 
transmit video programming to subscribers using the microwave 
frequencies of the Multipoint Distribution Service (MDS) and 
Instructional Television Fixed Service (ITFS). In connection with the 
1996 MDS auction, the Commission established a small business size 
standard as an entity that had annual average gross revenues of less 
than $40 million in the previous three calendar years. 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. In addition, the SBA has developed a 
small business size standard for Cable and Other Program Distribution, 
which includes all such companies generating $12.5 million or less in 
annual receipts. According to Census Bureau data for 1997, there were a 
total of 1,311 firms in this category, total, that had operated for the 
entire year. Of this total, 1,180 firms had annual receipts of under 
$10 million and an additional 52 firms had receipts of $10 million or 
more but less than $25 million. Consequently, we estimate that the 
majority of providers in this service category are small businesses 
that may be affected by the rules and policies adopted herein. This SBA 
small business size standard also appears applicable to ITFS. There are 
presently 2,032 ITFS licensees. All but 100 of these licenses are held 
by educational institutions. Educational institutions are included in 
this analysis as small entities. Thus, we tentatively conclude that at 
least 1,932 licensees are small businesses.
    27. Local Multipoint Distribution Service. Local Multipoint 
Distribution Service (LMDS) is a fixed broadband point-to-multipoint 
microwave service that provides for two-way video telecommunications. 
The auction of the 1,030 Local Multipoint Distribution Service (LMDS) 
licenses began on February 18, 1998 and closed on March 25, 1998. The 
Commission established a small business size standard for LMDS licenses 
as an entity that has average gross revenues of less than $40 million 
in the three previous calendar years. An additional small business size 
standard for ``very small business'' was added as an entity that, 
together with its affiliates, has average gross revenues of not more 
than $15 million for the preceding three calendar years. The SBA has 
approved these small business size standards in the context of LMDS 
auctions. There were 93 winning bidders that qualified as small 
entities in the LMDS auctions. A total of 93 small and very small 
business bidders won approximately 277 A Block licenses and 387 B Block 
licenses. On March 27, 1999, the Commission re-auctioned 161 licenses; 
there were 40 winning bidders. Based on this information, we conclude 
that the number of small LMDS licenses consists of the 93 winning 
bidders in the first auction and the 40 winning bidders in the re-
auction, for a total of 133 small entity LMDS providers.
    28. Electric Power Generation, Transmission and Distribution. This 
industry group comprises establishments primarily engaged in 
generating, transmitting, and/or distributing electric power. 
Establishments in this industry group may perform one or more of the 
following activities: (1) Operate generation facilities that produce 
electric energy; (2) operate transmission systems that convey the 
electricity from

[[Page 30259]]

the generation facility to the distribution system; and (3) operate 
distribution systems that convey electric power received from the 
generation facility or the transmission system to the final consumer. 
The SBA has developed a small business size standard for the category 
of Electric Power Generation, Transmission and Distribution. Under that 
standard, a firm is small if, including its affiliates, its total 
electric output for the preceding fiscal year did not exceed 4 million 
megawatt hours. According to Census Bureau data for 1997, there were 
1,519 firms in this category that operated for the entire year. Census 
data do not track electric output and we have not determined how many 
of these firms fit the SBA definition for small, with fewer than 4 
million megawatt hours of electric output. Consequently, the Commission 
estimates that all 1,519 firms may be considered small by the SBA 
definition.

IV. Description of Proposed Reporting, Recordkeeping, and Other 
Compliance Requirements

    29. The Notice proposes to extend the data collection for five 
years and to adopt changes to the Form 477 that will affect reporting, 
recordkeeping, and other compliance requirements. These changes are 
described below. Additionally, the Notice seeks comment on (1) 
requiring filers to report the number of high-speed connections in 
service, by technology and by speed, in particular ZIP Codes, (2) 
requiring more--or all--facilities-based providers to report 
information about high-speed connections on Form 477, and (3) requiring 
more carriers to report local telephone competition data.
    30. The proposed changes to the Form 477 would:
     Require filers reporting high-speed cable modem 
connections also to report their best estimate of the percentage of 
mass-market end-user premises in the filer's service area, in that 
state, to which high-speed cable modem service is available over the 
filer's own facilities.
     Similarly, require filers reporting high-speed DSL 
connections also to report their best estimate of the percentage of 
mass-market end-user premises in the filer's service area, in that 
state, to which high-speed DSL service is available over the filer's 
own facilities.
     Require filers to report the percentage of connections 
that have information transfer rates exceeding 200 kilobits per second 
(kbps) in both directions and rates in the faster direction that are, 
respectively: (1) Greater than 200 kbps and less than 2.5 megabits per 
second (mbps); (2) greater than or equal to 2.5 mbps and less than 10 
mbps; (3) greater than or equal to 10 mbps and less than 25 mbps; (4) 
greater than or equal to 25 mbps and less than 100 mbps; and (5) 
greater than or equal to 100 mbps. (Currently, filers report the 
percentage of high-speed connections that are faster than 2 mbps in 
both directions.)
     In place of the current requirement that all filers report 
high-speed connections over ``other traditional wireline including 
symmetric xDSL technology'' at the end-user location, require filers to 
report high-speed connections separately for ``symmetric xDSL'' and for 
``other traditional wireline'' (e.g., T-1/DS1) technologies.
     Require filers to report ZIP Code lists separately for 
asymmetric xDSL, symmetric xDSL, cable modem, satellite, terrestrial 
wireless, electric power line, and (as a single category) other 
technologies including fiber to the home. (Currently, filers report a 
single list of ZIP Codes in which the filer has at least one subscriber 
to high-speed service without indicating the type of technology used.)
     Require filers to estimate the percentage of reported 
high-speed connections that have information transfer rates exceeding 
200 kbps in both directions, and that are used by residential and small 
business end users.
     Require reporting competitive LECs explicitly to 
distinguish their use of unbundled network element (UNE) loops from 
their use of the UNE-Platform, and explicitly to report their resale of 
other carriers' services. (Currently, competitive LECs report their use 
of all types of UNEs together, and competitive LECs' resale of other 
carriers' retail services must be estimated, as a residual, from other 
data they report.)
     Require providers of local telephone service to report the 
extent to which they are also the end user's default interstate long 
distance carrier.

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

    31. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives: (1) The 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standards; and (4) an 
exemption from coverage of the rule, or any part thereof, for small 
entities.
    32. The Notice seeks comment, in light of four year's experience 
since the adoption of the reporting program, on ways that the 
Commission might improve this data gathering effort. The Notice asks 
whether the collection of more granular data would enhance the 
Commission's ability to understand the status and degree of broadband 
deployment pursuant to section 706 of the 1996 Act. At the same time, 
the Notice seeks comment on ways by which the Commission can limit 
burdens imposed on providers, particularly with regard to smaller 
providers that may have limited resources, prevent the dissemination of 
competitively-sensitive information, and limit the data collection, 
wherever possible, to information that providers routinely keep in the 
ordinary course of business of that is easily derived from their 
records. The proposed changes to the Form 477 set forth in the Notice 
would minimize additional reporting burden by (1) focusing direct 
questions about service availability on the two major mass-market high-
speed services and (2) allowing providers of those services to estimate 
state-level service availability using methodologies they may already 
employ to inform the investment community about system-wide service 
availability. As a practical matter, any additional reporting burdens 
on small entities should be minimal. The few small facilities-based 
broadband service providers that currently file Form 477 on a voluntary 
basis find that only a few questions apply to their situation.
    33. The Notice asks whether eliminating--or lowering--the reporting 
threshold for broadband data (i.e., at least 250 high-speed lines (or 
wireless channels) in a state connecting end users to the Internet) 
would yield significantly improved data about broadband deployment, 
particularly in rural areas, and requests that parties identify with 
specificity any associated burdens. The Notice similarly asks about the 
benefits and specific associated burdens of lowering the reporting 
threshold for local telephone competition data (i.e., at least 10,000 
local telephone service lines (or wireless channels), or at least 
10,000 mobile telephone service subscribers, in a state). At the same 
time, the Notice expressly states the Commission's desire and intention 
to work closely with service providers, including small entities, to 
minimize burdens wherever

[[Page 30260]]

possible, particularly for smaller providers that may have limited 
resources.

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

    34. The current FCC Form 477 and the FCC Form 325 (Annual Report of 
Cable Systems) collect data on cable modem and cable-telephony service 
subscribers. The Form 325, however, focuses on cable physical system 
(PSID) data. A Form 325 is required from each PSID that has at least 
20,000 subscribers and from a random sample of PSIDs that have fewer 
than 20,000 subscribers. The data are associated on the form with other 
aspects of physical system operation to give a complete picture of 
related aspects of PSID operation. By contrast, the requirement to 
report cable modem service connections on Form 477 applies to holding 
companies whose subsidiaries and affiliates provide, in total, at least 
250 high-speed connections to end users in a particular state, and the 
requirement to report cable-telephony lines applies when the holding 
company provides at least 10,000 local telephone service lines in a 
particular state. Form 325 collects information as of June 30 of each 
year. Form 477 collects data as of June 30 and December 31. This Notice 
seeks comment on whether all facilities-based providers should be 
required to report information about high-speed connections on Form 
477, which, for its intended purposes, focuses on and is analyzed on a 
holding company rather than PSID basis.

Ordering Clauses

    Accordingly, it is ordered that, pursuant to sections 1-5, 10, 11, 
201-205, 215, 218-220, 251-271, 303(r), 332, 403, 502, and 503 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151-155, 160, 161, 
201-205, 215, 218-220, 251-271, 303(r), 332, 403, 502, and 503, and 
section 706 of the Telecommunications Act of 1996, 47 U.S.C. 157 nt, 
this notice, with all attachments, is adopted.
    It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Notice of Proposed Rulemaking, including the Initial 
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of 
the Small Business Administration.

Draft FCC Form 477 and Instructions

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    FCC Form 477, Instructions for March 1, 2005 Filing (of data as of 
12/31/04).
    OMB No: 3060-0816; Expiration Date: xx/xx/xxxx.
    Estimated Average Burden Hours Per Response: 15 Hours.

Instructions for Local Telephone Competition and Broadband Reporting 
Form (FCC Form 477)

I. Purpose

    The FCC Form 477 collects information on the deployment of 
broadband, local telephone and mobile telephony services from providers 
of these services. Data obtained from this form will be used to 
describe competition for local telecommunications services and 
deployment of broadband services. See Local Telephone Competition and 
Broadband Reporting, Order, FCC xx-xxx (rel. xx xx, xxxx) for 
additional information about this collection.

II. Who Must File This Form?

    Three types of communications service providers must file this 
form:
     Providers of Broadband Services: Facilities-based 
broadband providers (including incumbent and competitive LECs, cable 
companies, fixed wireless providers, terrestrial and satellite mobile 
wireless providers, MMDS providers, utilities, municipalities, and 
others) must complete and file the applicable portions of this form for 
each state in which the filer (including all commonly-owned and 
commonly-controlled entities) provides 250 or more broadband lines (or 
wireless channels) that terminate at an end-user location and connect 
the end user to the Internet. For purposes of this information 
collection, broadband lines (or wireless channels) carry information, 
at the end-user location, at information transfer rates exceeding 200 
kilobits per second (kbps) in at least one direction. Note that, for 
purposes of this information collection, we also refer to ``broadband'' 
lines as ``high-speed'' lines. The applicable portions of the form are: 
(1) The Cover Page; (2) Part I; (3) Part IV (if necessary); and Part V. 
The term ``state'' includes the District of Columbia and the 
``Territories and possessions.''

    Note: An entity is considered a ``facilities-based'' broadband 
provider if it provides broadband lines (as defined above) over 
facilities that it (including all commonly-owned and commonly-
controlled entities) owns or provisions/equips as broadband. More 
specifically, facilities-based providers include entities that 
provide broadband connections to end-user premises over their own 
local loop facilities, or over unbundled network elements (UNEs), 
special access lines, and other leased lines and wireless channels 
that they obtain from unaffiliated entities and equip as broadband.

     Providers of Local Telephone Services: Incumbent and 
competitive local exchange carriers (LECs) must complete and file the 
applicable portions of the form for each state in which they provide 
10,000 or more ``voice-grade equivalent lines (or wireless channels).'' 
For purposes of determining whether this threshold applies, the filer 
(including all commonly-owned and commonly-controlled entities) need 
only consider the sum of the number of voice-grade equivalent lines (or 
wireless channels) that would be reported in Line A.II-1(a), Line B.II-
2(a), and Line B.II-3(a) of the form. The applicable portions of the 
form are: (1) The Cover Page; (2) Part II; (3) Part IV (if necessary); 
and Part V.
     Providers of Mobile Telephony Services: Facilities-based 
providers of mobile telephony services (see 47 CFR 20.15(b)(1)) must 
complete and file the applicable portions of this form for each state 
in which they serve 10,000 or more mobile telephony subscribers. 
Entities providing mobile telephony services using spectrum obtained 
via lease or other agreement with a Band Manager must also complete the 
applicable portions of this form. The applicable portions of the form 
are: (1) The Cover Page; (2) Part III; (3) Part IV (if necessary).

    Note: Mobile telephony is defined as real-time, two-way switched 
voice service that is interconnected with the public switched 
network using an in-network switching facility that enables the 
provider to reuse frequencies and accomplish seamless handoff of 
subscriber calls.

    Important Note for All Providers about Calculating Reporting 
Thresholds: Reporting thresholds are calculated based collectively on 
all commonly-owned and commonly-controlled affiliates operating in a 
given state. [See 47 U.S.C. 153(1) (establishing a 10% equity interest 
as indicia of ownership).] That is, a provider must report for each 
state in which it and all affiliates collectively meet reporting 
thresholds. Such affiliates are, nevertheless, permitted to file forms 
for such states either combined or separately--at their discretion.

III. Line-by-Line Instructions for Completing FCC Form 477

    (Note: Key terms that appear in this section are summarized in 
VI. Glossary of Selected Terms Appearing on FCC Form 477.)

A. Cover Page--Name and Contact Information (All Filers)

    Line 1: Select from the drop-down menu the applicable filing 
status.
    Line 2: Provide the name of the entity whose data is contained in 
the form. (If the filer has a holding company or controlling entity 
with a different name, that name must be reported in Line 5 of the 
Cover Page.)
    Line 3: Select the category that best describes the type of 
technology that you use to provide services. Choose from Cable Coaxial, 
Fiber, Fixed Wireless, Mobile Wireless, Reseller, Satellite, Wireline 
Local Exchange Carrier, or Other.
    Line 4: In general, you can combine operations in a state or report 
them separately. However, entities that are, or are affiliated with, an 
incumbent LEC must complete and file separate forms for their incumbent 
LEC and non-incumbent LEC operations. All filers should indicate 
whether this filing is for an incumbent LEC filing or a non-incumbent 
LEC filing.
    Line 5: You must provide a single name, such as a holding company 
name, so that all affiliated or commonly-controlled entities can be 
identified. See ``Important Note for All Providers about Calculating 
Reporting Thresholds,'' above, for more information on which entities 
should be considered to be affiliated or commonly-controlled. The Excel 
2002 spreadsheet version of the form (preferred) has a drop down box 
with standardized names. The Lotus 123 spreadsheet version of the form 
has a list of standardized names. If your holding company or 
controlling entity's name is not in the list, enter that name in the 
space provided. (If you have no holding company or controlling entity, 
enter in Line 5 the same name as you entered in Line 2.)
    Line 6: File a separate form for each state in which you meet the 
filing threshold. In this line, indicate the state for which you are 
filing data. The term ``state'' is defined to include the District of 
Columbia and the ``Territories and possessions.'' See 47 U.S.C. 
153(40).
    Line 7: Provide a contact name for the person who prepared this 
filing.
    Line 8: Provide the telephone number and e-mail address for the 
contact person listed in Line 7.
    Line 9: File a revised form if you discover mistakes. Use Line 9 to 
indicate whether this filing is an original or a revised filing.
    Line 10: Indicate whether you request non-disclosure of some or all 
of the information reported in the Form 477. You may request non-
disclosure if you believe that this information is

[[Page 30269]]

privileged and confidential and that public disclosure of such 
information would likely cause substantial harm to the competitive 
position of the filer. Note that if you request non-disclosure of some 
or all of the data, you must also file a redacted version of the form 
(in which the specific items of data you believe to be privileged and 
confidential are redacted, as explained below in Sections IV-B and IV-C 
of the instructions).
    Line 11: Indicate whether this file is a complete file or a 
redacted version of a complete file. See Sections IV-B and IV-C of the 
instructions for information on preparing a redacted file.

B. Part I.A.: Broadband (Broadband Providers Only)

    Include in Part I.A.: In this section, facilities-based broadband 
providers report information about their broadband lines/wireless 
channels (for purposes of this section ``lines'') in service to end 
users. End users are residential, business, institutional and 
government entities who use broadband services for their own purposes 
and who do not resell such services to other entities or incorporate 
such services into retail Internet-access services that they market to 
end users. (Note that an Internet Service Provider is not an ``end 
user'' for purposes of Part I of FCC Form 477.) The end users of retail 
services delivered over the lines reported in Part I may be billed by 
the filer (including affiliates), by an agent of the filer, or by an 
unaffiliated entity. For purposes of this information collection, 
broadband lines carry information between the Internet and the end-user 
location at information transfer rates exceeding 200 kbps in at least 
one direction. (For purposes of this information collection, we also 
refer to ``broadband'' lines as ``high-speed'' lines.) In categorizing 
lines as ``broadband,'' filers should consider the end user's 
authorized maximum usage (``speed'') on that connection. Filers must 
report wired broadband lines provisioned over ``local loop'' facilities 
owned by the filer (including affiliates), as well as broadband lines 
provisioned over UNEs, special access lines, and other leased lines 
that the filer obtains from an unaffiliated entity and equips as 
broadband. Filers also must report broadband lines that they provision 
over the wireless last-mile equivalent of the local loop. Do not 
convert into voice-grade equivalent measures any lines reported in Part 
I.
    Exclude in Part I.A.: Broadcast cable television service and other 
multi-channel video programming; video-on-demand type service unless it 
is bundled with Internet-type access or uses Internet-type delivery 
protocols; and channelized services which restrict the customer to both 
transmitting and receiving data at 200 kbps or less. Exclude lines that 
connect two locations of the same large-business or other end-user 
entity (not to be reported anywhere on FCC Form 477) and special access 
and private line services that you believe are used for exchange 
telephone service (to be reported in Part II-C). Where a filer does not 
know whether a high-capacity line or wireless channel is being used as 
a broadband line or as a telephone service line, the filer should 
report that line in Part II, on Line C.II-6. If you provide a line to 
an unaffiliated filer who is likely to include services provided over 
that line in its own report (for example, because the unaffiliated 
filer equips the line or UNE as broadband), then that line should be 
reported in Part II-C of your filing.
Lines in Part I.A.
    Report broadband lines on Lines A.I-1 through A.I-9 based on the 
technology employed by the part of the line that actually connects to 
the end-user premises. If different technologies are used in the two 
directions of information transfer (``downstream'' and ``upstream''), 
report the line in the technology category for the higher-rate 
direction. Count only lines that are in service connecting the end user 
to the Internet, including lines over which you (including affiliates 
or agents) provide an Internet-access service to the end user and lines 
over which an unaffiliated entity (which is not your agent) provides an 
Internet-access service to the end user.
    Line A.I-1: Report the number of broadband lines provided over 
asymmetric xDSL technologies. Do not convert these lines into a voice-
grade equivalent measure.
    Line A.I-2: Report the number of broadband lines provided over 
symmetric xDSL technologies. Do not convert these lines into a voice-
grade equivalent measure.
    Line A.I-3: Report the number of broadband lines provided over 
other traditional wireline facilities. Do not include broadband lines 
provided over symmetric xDSL service, but report such lines in Line 
A.I-2. Do not convert these lines into a voice-grade equivalent 
measure.
    Line A.I-4: Report the number of broadband lines provided over 
coaxial carrier systems including hybrid fiber-coaxial systems (i.e., 
``cable modem'' connections). Do not convert these lines into a voice-
grade equivalent measure.
    Line A.I-5: Report the number of broadband lines provided over 
optical carrier terminations at the end-user premises. Note that 
broadband lines that are provisioned over optical fiber facilities used 
elsewhere in the network should not be reported in this category. For 
example, lines provisioned as ``fiber to the curb'' do not qualify 
(because, by using a non-fiber ``drop,'' they are not ``fiber to the 
home.'') Do not convert these lines into a voice-grade equivalent 
measure.
    Line A.I-6: Report the number of broadband lines provided over 
satellite facilities. Do not convert these lines into a voice-grade 
equivalent measure.
    Line A.I-7: Report the number of broadband lines provided over 
terrestrial fixed wireless facilities (whether using licensed or 
unlicensed spectrum). Do not convert these lines into a voice-grade 
equivalent measure.
    Line A.I-8: Report the number of broadband lines provided over 
terrestrial mobile wireless facilities (whether using licensed or 
unlicensed spectrum). Do not convert these lines into a voice-grade 
equivalent measure.
    Line A.I-9: Report the number of broadband lines provided over 
electric power lines. Do not convert these lines into a voice-grade 
equivalent measure.
    Line A.I-10: Report the number of broadband lines provided over all 
other technologies. Do not convert these lines into a voice-grade 
equivalent measure. Note that the filer must identify each specific 
technology used to provide the lines reported in Line A.I-10, and the 
corresponding number of connections for each specific technology, in 
the comment section of Part IV of FCC Form 477.
Columns in Part I.A.
    General Note about Reporting Percentage Breakouts: Parts I, II, and 
III of Form 477 direct filers to provide percentages breakouts for 
specific line counts. If disaggregated counts exist for another 
purpose, then these must be used to calculate the requested percentage 
breakouts. However, filers are not expected to calculate percentages 
based on exhaustive counts performed solely for this task. Rather, 
where disaggregated counts do not exist, filers may provide good faith 
estimates of percentages based on the best information available to the 
filer. For example, if there is a pricing distinction between services 
provided to residential, small business, and large business customers, 
then billing information may be used to estimate the percentage of 
lines provided to residential and small business customers. In the 
absence of such

[[Page 30270]]

information, however, filers should rely on studies done for other 
purposes, such as marketing and business plan information, demographic 
data, etc. A filer should conduct limited special studies only in the 
event that it cannot provide estimates of percentage breakouts that it 
reasonably expects to be accurate within plus or minus five percentage 
points.
    Column (a): Report the total number of broadband lines (i.e., 
connections in service to end users that carry information, at the end-
user location, at information transfer rates exceeding 200 kbps in at 
least one direction) as described in each of Lines A.I-1 through A.I-
10, above.
    Column (b): Report the percentage of total lines reported in column 
(a) that are in service to residential and small business end users (as 
opposed to large business, institutional, or other end users). In Part 
I of FCC Form 477, classify lines as being used by residential and 
small business end users if the end user has a broadband connection of 
a type (as indicated by, e.g., information transfer rates, features, 
and price) that is most typically associated with (i.e., primarily 
designed for, or marketed to) residential end users.
    Column (c): Report the percentage of total lines reported in column 
(a) that are provided over your own local loop facilities, or the 
wireless last-mile equivalent, connecting to the end user's premises. 
Count as your own such facilities, those wired local loop facilities 
that you (including your affiliates) owned, those wireless connections 
to end-user premises that are deployed over unlicensed spectrum or 
spectrum for which you hold a license, manage, or have obtained the 
right to use via lease or other arrangement with a Band Manager, and 
facilities you obtained the right to use from unaffiliated entities as 
dark fiber or satellite transponder capacity (and that you used as part 
of your own system). Do not include, in column (c), broadband lines 
that you provided over UNEs, special access lines, and other leased 
lines that you obtained from an unaffiliated entity and equipped as 
broadband.
    Column (d): Report the percentage of total lines reported in column 
(a) that are billed (or incorporated in a service billed) to end users 
by the filer (including affiliates) or by the filer's agents. Do not 
include in this percentage any lines reported in column (a) that are 
billed to an unaffiliated Internet Service Provider (ISP) that has 
incorporated the filer's broadband service into a premium Internet-
access service marketed under the unaffiliated ISP's own name.
    Note on columns (e)-(j) of Part I.A: The percentages reported in 
columns (e)-(j) of Part I.A refer, in each case, to lines that carry 
information, at the end-user location, at information transfer rates 
exceeding 200 kbps in both directions. In categorizing lines in this 
manner, filers should consider the end user's authorized maximum usage 
(``speed'') on that connection.
    Column (e): Report the percentage of total lines reported in column 
(a) that carry information, at the end-user location, at information 
transfer rates exceeding 200 kbps in both directions and that are used 
by residential and small business end users. (As noted in instructions 
for column (b), above, classify lines as ``residential and small 
business'' if the end user has in service a broadband connection of a 
type most typically associated with residential end users.)
    Column (f): Report the percentage of total lines reported in column 
(a) that carry information, at the end-user location, at information 
transfer rates exceeding 200 kbps in both directions and, in the faster 
direction, at rates greater than 200 kbps and less than 2.5 mbps.
    Column (g): Report the percentage of total lines reported in column 
(a) that carry information, at the end-user location, at information 
transfer rates exceeding 200 kbps in both directions and, in the faster 
direction, at rates greater than or equal to 2.5 mbps and less than 10 
mbps.
    Column (h): Report the percentage of total lines reported in column 
(a) that carry information, at the end-user location, at information 
transfer rates exceeding 200 kbps in both directions and, in the faster 
direction, at rates greater than or equal to 10 mbps and less than 25 
mbps.
    Column (i): Report the percentage of total lines reported in column 
(a) that carry information, at the end-user location, at information 
transfer rates exceeding 200 kbps in both directions and, in the faster 
direction, at rates greater than or equal to 25 mbps and less than 100 
mbps.
    Column (j): Report the percentage of total lines reported in column 
(a) that carry information, at the end-user location, at information 
transfer rates exceeding 200 kbps in both directions and, in the faster 
direction, at rates greater than or equal to 100 mbps.

C. Part I.B.: Broadband (Providers of Asymmetric xDSL Connections, 
Symmetric xDSL Connections, or Cable Modem Connections Only)

Lines in Part I.B.
    Filers that report xDSL (asymmetric or symmetric) connections in 
Part I.A and filers that report cable modem connections in Part I.A 
must complete Part I.B.
    Line B.I-11: Complete column (a) of Line B.I-11 if there is a non-
zero entry in column (a) of Line A.I-1 or in column (a) of Line A.I-2.
    Line B.I-12: Complete column (a) of Line B.I-12 if there is a non-
zero entry in column (a) of Line A.I-4.
Columns in Part I.B.
    Column (a): Report in column (a) your best estimate of the 
percentage of mass-market end-user premises in your service area, in 
this state, to which broadband lines were available over your own local 
loop facilities, as of the date specified for a particular filing 
(e.g., as of December 31, 2004, for the filing due March 1, 2005). 
Mass-market end user premises include residential living units (e.g., 
single family dwellings and individual households in multiple dwelling 
units such as apartments, condominiums, mobile home parks, etc.) and 
also individual living units in such institutional settings as college 
dormitories and nursing homes. Mass-market end-user premises also 
include small businesses to the extent that you consider small business 
end users to be target customers for broadband services that you 
(including your affiliates), or your agents, primarily design for, or 
market to, residential end users. Guidance on generating a ``best 
estimate'': Rather than setting out detailed methodologies to which 
filers must adhere in reporting estimated service availability by 
state, we intend to rely on best practices in the cable and local 
exchange industries to provide us with carefully considered estimates. 
Filers should note the following points. (1) If your ``franchise area'' 
or ``traditional service area'' (as those terms would be understood by 
the relevant municipal or state regulatory body) includes areas to 
which your existing plant has not been ``built out,'' you must 
include--in the denominator of the fraction that generates your best-
estimate percentage--an estimate of the number of mass-market end-user 
premises that are located in those non-built out areas. Thus, for 
example, the number of mass-market end-user premises in a cable TV 
franchise area may be larger than the number of ``video homes passed'' 
by a cable system

[[Page 30271]]

operating in that franchise area. (2) The best estimate of service 
availability should not require degradation, outside of normal 
operating parameters, of the service quality of the filer's most 
heavily purchased type(s) of mass-market broadband connection. (3) 
Filers should take into account rule-of-thumb lessons from the 
experience of deploying particular broadband services in similar areas 
(e.g., differences between actual and theoretical availability of xDSL 
service to mass-market end-user premises in areas in which the service 
already has been deployed, such as may arise due from loop-conditioning 
factors and loop lengths).

D. Part II: Wireline and Fixed Wireless Local Telecommunications (Local 
Telephone Service Providers Only)

    Include in Part II: Report all local exchange service lines (or 
wireless channels) and all lines (or wireless channels) that are used 
for exchange access services that you do not report in Part I. 
(Hereafter, for purposes of this section, we use the terms ``local 
exchange lines'' or ``lines.'') See ``Note for reporting channelized 
service'' and definition of ``voice telephone service,'' below.
    Exclude in Part II: Do not report in Part II lines not yet in 
service, lines used for interoffice trunking, lines that connect two 
locations of the same customer, company official lines, or lines that 
you provide as a broadband service reported in Part I. Do not report in 
Part II transport lines between your switching center and Internet 
protocol, ATM or circuit switched networks, where you already are 
reporting the portion of the line between the end user and your 
switching center, even if you multiplexed those lines and provided 
higher capacity lines between your switching center and those networks. 
Note for reporting channelized service: In Part II-A and Part II-B, 
providers are to report voice-grade equivalent lines. Count as one 
voice-grade equivalent line: traditional analog POTS lines, Centrex-CO 
extensions, and Centrex-CU trunks. Count lines based on how they are 
charged to the customer rather than how they are physically 
provisioned. That is, when a customer is charged for channelized 
service, report the number of activated, charged-for channels rather 
than the theoretical capacity of the line. Examples: Count Basic Rate 
Integrated (BRI) Services Digital Network (ISDN) lines as two voice-
grade equivalent lines. Report 8 voice-grade equivalent lines if a 
customer is charged for 8 trunks that happen to be provisioned over a 
DS1 circuit. If a customer is charged for a fully-channelized DS1 
circuit, report 24 voice-grade equivalent lines. Lines reported in Part 
II-C, however, should not be reported in voice-grade equivalents, but 
should reflect actual circuit counts. Note for competitive LECs 
providing local exchange service over hybrid fiber-coaxial cable 
television systems: If you cannot determine the number of lines from 
your records, you are permitted to report the number of subscribers.
Lines in Part II
    In Lines A.II-1 (service provided to end users) and Lines B.II-2 
through B.II-3 (service provided to other carriers), report voice-grade 
equivalent lines used to provide voice telephone service. By ``voice 
telephone service,'' we mean local exchange or exchange access services 
that allow end users to originate and/or terminate local telephone 
calls on the public switched network, whether used by the end user for 
voice telephone calls or for other types of calls carried over the 
public switched network (for example, lines used for facsimile 
equipment or lines used occasionally or exclusively for ``dial-up'' 
connection to the Internet). Filers report voice telephone service in 
terms of voice-grade equivalent lines. Thus, a voice-grade equivalent 
line directly connects an end user to a carrier and allows the end user 
to originate and/or terminate local telephone calls on the public 
switched network. Voice-grade equivalent lines include high capacity 
lines that are channelized to provide voice-grade service. See ``Note 
for reporting channelized service,'' above.
    Line A.II-1: Report total voice-grade equivalent lines you 
provided--that is, billed--directly to end-user consumers. Include 
lines provided to end users by your agents or under traditional 
marketing arrangements. For example, include lines provided to shared-
tenant service providers. Note that an Internet Service Provider (ISP) 
may be an end user of local exchange service lines.
    Line B.II-2: Report total voice-grade equivalent lines you provided 
to unaffiliated telecommunications carriers under a Total Service 
Resale arrangement (i.e., provided pursuant to section 251(c)(4) of the 
Communications Act of 1934, as amended).
    Line B.II-3: Report total voice-grade equivalent lines you provided 
to unaffiliated telecommunications carriers under other resale 
arrangements, including reselling Centrex/Centron.
    In Lines C.II-4 through C.II-6, report the actual number of lines 
billed to the customer (i.e., reflecting actual circuit counts). Do not 
convert into voice-grade equivalent measures any high capacity lines 
reported on Lines C.II-4 through C.II-6. As noted in the instructions 
for Part I, where a provider does not know whether a high capacity line 
is being used as a broadband line or as a telephone service line, it 
should report that line on Line C.II-6, rather than in Part I of its 
filing. Also, if you provide a line to another filer who is likely to 
include broadband services provided over that line in its own report 
(for example, because the other filer equips the line or UNE as 
broadband), then that line should be reported in Part II-C of your 
filing, not in Part I.
    Line C.II-4: Report lines that you provided to unaffiliated 
telecommunications carriers under an unbundled network element (UNE) 
loop arrangement, where you do not provide switching for the line. 
Include the high frequency portion of the loop if sold as a UNE. Do not 
convert any high capacity lines provided under such UNE arrangements 
into voice-grade equivalent measures.
    Line C.II-5: Report lines that you provided to unaffiliated 
telecommunications carriers under a UNE loop arrangement, where you 
also provide switching for the line (i.e., ``UNE-Platform''). Do not 
convert any high capacity lines provided under such UNE arrangements 
into voice-grade equivalent measures.
    Line C.II-6: Report connections not reported in Part I (i.e., as 
broadband) that are either special access or private lines and that 
connect an end-user premises to a telecommunications carrier. Note that 
for lines reported on Line C.II-6, your customer may be either an end 
user or another telecommunications carrier. Do not convert lines 
reported on Line C.II-6 into voice-grade equivalent measures.
Columns in Part II
    Column (a): For Lines A.II-1 (service provided to end users), and 
Lines B.II-2 through B.II-3 (service provided to other carriers), 
report voice-grade equivalent lines used to provide local exchange 
services.
    For Lines C.II-4 through C.II-6 (UNEs, and special access and 
private lines not provided as broadband), report the number of circuits 
(i.e., not the voice-grade equivalent of those circuits) that are used 
for local exchange or exchange access services that you do not report 
in Part I.

    Note: See note above, page 5, about reporting data on 
percentages.

    Column (b): Where indicated (i.e., for Line A.II-1), report the 
percentage of the lines reported in column (a) for which you (including 
affiliates) are the default

[[Page 30272]]

interstate long distance carrier, i.e., the (facilities-based or 
reseller) carrier to which an interstate long distance call is routed 
automatically, without the use of any access code by the end user.
    Column (c): Where indicated (i.e., for Lines A.II-1, A.II-2, and 
A.II-3), report the percentage of the lines reported in column (a) that 
are used for ``residential and small business'' service. In Part II of 
FCC Form 477, consider your own end-user customer to be ``residential 
and small business'' if you provide fewer than four (4) voice-grade 
equivalent lines to that customer location. Also, consider any lines 
you provide to a shared-tenant service provider in an apartment 
building to be residential and small business lines. For end-user lines 
you provide to other carriers as Total Service Resale (i.e., in Line 
A.II-2.) or under other resale arrangements such as resold Centrex/
Centron (i.e., in Line A.II-3.), classify lines as ``residential and 
small business'' if the carrier orders fewer than four (4) voice-grade 
equivalent lines for its use in serving a particular end user. If such 
information on the number of voice-grade lines to the end user is not 
available, you may estimate a comparable classification based on 
tariffs or on marketing information, such as demographic information 
associated with the geographic areas where the lines are provided.
    Column (d): Where indicated (i.e., for Line A.II-1) report the 
percentage of the lines reported in column (a) that are used for 
``residential and small business'' service and for which you (including 
affiliates) are the default interstate long distance carrier.
    Column (e): Report the percentage of the lines reported in column 
(a) that are provided over your own local loop facilities, or the 
wireless last-mile equivalent, connecting to the end user's premises. 
Count as your own such facilities, those wired local loop facilities 
that you (including your affiliates) owned, those wireless connections 
to end-user premises that are deployed over spectrum for which you hold 
a license, manage, or have obtained the right to use via lease or other 
agreement with a Band Manager, and facilities you obtained the right to 
use from unaffiliated entities as dark fiber or satellite transponder 
capacity (and that you used as part of your own system). Do not 
include, in column (c), lines provided over UNE loops that you obtained 
from an unaffiliated carrier.
    Note for competitive LECs that own telephone switches: A 
competitive LEC should include, in column (e), a line for which it 
provided its own switching only if it also owned (as just discussed) 
the local loop facilities that connect to the end user's premises.
    Column (f): Report the percentage of lines reported in column (a) 
that are provided over UNE loops obtained from an unaffiliated carrier 
without also obtaining UNE switching from that carrier.
    Column (g): Report the percentage of lines reported in column (a) 
that are provided over UNE-Platform (i.e., the combination of loop UNE, 
switching UNE, and transport UNE) obtained from an unaffiliated 
carrier.
    Column (h): Report the percentage of lines reported in column (a) 
that are provided by reselling an unaffiliated carrier's retail 
service, including Centrex/Centron as well as other retail services.
    Column (i): Report the percentage of lines reported in column (a) 
that are delivered over coaxial cable facilities used in the part of 
the line that connects to the end-user premises (``cable telephony'').
    Column (j): Report the percentage of lines reported in column (a) 
that are delivered over fixed wireless facilities used in the part of 
the line that connects to the end-user premises.

E. Part III: Mobile Local Telephone (Mobile Telephony Providers Only)

    Line A. III-1: Report all mobile voice telephony subscribers served 
over your own facilities that give customers the ability to place or 
receive calls from the public switched telephone network. (See column 
(a), below, for how to count subscribers.) Include: Satellite, 
cellular, and PCS telephone service and other terrestrial mobile 
services; and, units in service that combine voice telephone with other 
services. Report subscribers that you (including affiliates) serve 
using spectrum for which you hold a license, manage, or have obtained 
the right to use via lease or other agreement with a Band Manager. Do 
not report any subscribers that you serve by reselling an unaffiliated 
carrier's mobile telephone service.

    Note: Exclude mobile services that customers cannot use to 
directly place calls to subscribers of ordinary telephone service, 
such as dispatch services and one-way or two-way paging services. 
Also exclude voice services that permit communications between only 
a narrow range of locations such as automobile units that permit 
drivers to communicate only with a specific road service.

    Column (a): Report the total number of mobile voice telephony 
subscribers in the state that are served over your own facilities. 
Count as a subscriber a mobile handset, car-phone, or other revenue-
generating, active, voice unit that has a unique phone number and that 
can place and receive calls from the public switched network. Include 
in column (a) subscribers that you (including affiliates) bill directly 
(including through agents), pre-paid subscribers, and subscribers 
served via unaffiliated mobile telephone service resellers. Subscriber 
counts by state should be based on the area codes of the phone numbers 
provided to subscribers.
    Column (b): Report the percentage of subscribers in column (a) that 
you bill directly (including through agents) or serve on a pre-paid 
basis. Do not include subscribers that are billed by an unaffiliated 
mobile telephone service reseller.
    Column (c): Report the percentage of subscribers in column (a) that 
you bill directly (including through agents) or serve on a pre-paid 
basis and for which you (including affiliates) are the default 
interstate long distance carrier. For purposes of this reporting 
requirement, a default interstate long distance carrier is the 
(facilities-based or reseller) carrier to which an interstate long 
distance call is routed automatically, without the use of any access 
code by the end user.

F. Part IV: Explanations and Comments (All Filers, As Necessary)

    Filers that must report: If there is a non-zero entry in column (a) 
of Line A.I-10, the filer must identify each specific technology used 
to provide the broadband connections reported in Line A.I-10, and the 
corresponding number of connections for each specific technology, in 
the comment section of Part IV.
    Other filers: Complete Part IV to furnish relevant explanatory 
information with your data. For example, an explanation should be 
provided if a percentage figure has changed noticeably from earlier 
filings. In Part IV, filers should identify the Part and Line to which 
their comment applies in the columns provided.

G. Part V: ZIP Code Listings (Broadband Providers and Local Telephone 
Service Providers)

    Line V-1: Report, in the appropriate column, the 5-digit ZIP 
Codes--for this state--in which you provide at least one of the 
broadband connections reported in Part I or at least one of the voice 
grade telephone services reported in Part II.
    Column (a)-(g): If you file broadband information in Part I, you 
must provide, for each individual technology indicated by the column 
head, a list of ZIP Codes in the state in which you provide at least 
one of the broadband connections reported in Part I.

[[Page 30273]]

    Column (h): If you file local exchange service information in Part 
II, you must provide a list of ZIP Codes in the state in which you have 
customers for your local exchange telephone service. Providers of 
mobile telephony services that report data in Part III should not 
report this ZIP Code information.

    Note: These ZIP Code lists should correspond to areas in which 
service is actually being used by customers, including ``point ZIP 
Codes'' (i.e., a ZIP Code assigned to a particular customer). The 
list should not include authorized territory in which you have no 
customers in service, planned build-out, location of facilities, 
etc. The list can be based on engineering information (such as maps 
showing actual service territory) or on billing information, such as 
the ZIP Codes of actual customers. If the latter approach is 
selected, please review the resulting list and delete any ZIP Codes 
which clearly are out of your service territory and which appear 
only because the billing address is likely different from the 
service address.

IV. General Information

A. Where and When To File

1. When To File
    Service providers that meet the reporting thresholds must file the 
FCC Form 477 semi-annually:
     March 1st of each year: providers must file data as of 
December 31 of the preceding year.
     September 1st of each year: providers must file data as of 
June 30 of the same year.
2. Where To File
    All filers must deliver to the FCC the signed, original paper copy 
of the Certification Statement. The Certification Statement is the 
single page that constitutes Section V of these Instructions. Filers 
must deliver completed Form 477(s) to the FCC on electronic media. 
Paper copies of completed Form 477s may not be submitted. Acceptable 
electronic media are spreadsheet files attached to an e-mail message, 
or one or more IBM format compact discs or 3.5-inch floppy diskettes 
containing such files. The latter should be clearly labeled to identify 
contents by (at a minimum): FCC Form 477 (12/31/04 data), name of 
filer, whether the item contains ``complete'' or (if relevant) 
``redacted'' versions of Form 477, and the states for which data are 
included. In all cases, filers should use up-to-date virus detection 
software to ensure that electronic media are virus-free.
    Attention: The United States Postal Service (USPS) requires all 
First Class, Priority, and Express Mail addressed to the ZIP Code in 
which the FCC Headquarters is located to be irradiated (cleaned) prior 
to delivery. Because the irradiation process can have an adverse effect 
on electronic media (e.g., compact discs and floppy diskettes), the 
Commission encourages filers to submit Form 477 using one of the 
following alternatives, preferably e-mail. (Use only one filing method; 
do not make duplicate filings.) Because requirements for overnight, 
hand, or messenger delivery may change, filers who choose not to use e-
mail should consult the Office of the Secretary (http://www.fcc.gov/osec) for the most current information about address and other delivery 
requirements.
    E-mail: Filers are encouraged to deliver completed Form 477(s) as 
attachments to one or more e-mail messages sent to [email protected]. 
Filers submitting multiple files are encouraged to use a zip utility to 
compress them into one ``complete'' file and (if relevant) one 
``redacted'' file. The subject field of the e-mail should contain the 
following phrase: FCC Form 477 due 3/1/05. If multiple e-mails must be 
sent, the subject line should so indicate; for example: FCC Form 477 
due 3/1/05 (message 1 of 3). Filers submitting Form 477(s) by e-mail 
may deliver the signed, original paper copy of the Certification 
Statement by USPS first-class mail addressed to: FCC FORM 477 (ATTN: 
WCB/IATD, Room 6-A220), Federal Communications Commission, 445 12th 
Street, SW., Washington, DC 20554. (Alternatively, filers may deliver 
the signed, original copy of the Certification Statement by one of the 
following methods.)
    Overnight delivery service other than USPS Express Mail or Priority 
Mail: Compact discs, or floppy diskettes, containing completed Form 
477(s)--accompanied by the signed, original copy of the Certification 
Statement--may be delivered by an overnight delivery service other than 
USPS Express Mail or Priority Mail (e.g., UPS, DHL, Federal Express). 
Such deliveries must be addressed and delivered to: FCC FORM 477 (ATTN: 
WCB/IATD, Room 6-A220), Federal Communications Commission, 9300 East 
Hampton Drive, Capitol Heights, MD 20743. Filers who want a 
confirmation of receipt may include a stamped, self-addressed envelope 
and a photocopy of the Certification Statement, which will be receipt-
stamped and returned by mail.
    Hand delivery or messenger delivery: Local hand and messenger 
deliveries directed to the Commission's Secretary are accepted at 236 
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. All Form 
477 filing materials delivered to this location must be clearly 
identified to be re-directed to: FCC FORM 477 (ATTN: WCB/IATD, Room 6-
A220).
    A filer who is unable to use one of the three delivery methods 
should contact the Industry Analysis and Technology Division, Wireline 
Competition Bureau, at (202) 418-0940 of via TTY at (202) 417-0484.

B. How To File

1. Preparation of Data Files
    You must file your local competition and broadband deployment data 
using the electronic version of Form 477 that is available at http://www.fcc.gov/formpage.html or by purchase from the FCC's duplicating 
contractor, Qualex International at (202) 863-2893; fax (202) 863-2898; 
TTY (202) 863-2897; e-mail [email protected] Form 477 will change over 
time, and filers must obtain the latest version for each filing period. 
Filers should also obtain the latest version of Instructions for Form 
477.
    The electronic version of Form 477 is provided in two formats: 
Excel 2002 and Lotus 123 Version 5. The Excel 2002 version contains 
drop-down boxes and some edit checks. The Lotus version should be 
usable in most spreadsheet programs. Once you complete a filing, name 
the file in accordance with instructions provided below. If you wish to 
assert confidentiality for any information provided in the filing, you 
must provide a redacted version of the file, renamed in accordance with 
the instructions provided below. If you do not provide a redacted 
version of the file using the proper file names, you risk having 
confidential information released.

    Note: If you are required to complete a particular Part of Form 
477, answer all the questions within that Part; if a particular 
question in that Part does not apply to you, enter the number ``0'' 
(zero) as your response. (If you are not required to complete a 
particular Part of Form 477, you may leave all cells in that 
particular Part blank.) For non-zero entries, enter all digits of 
the number. You may not move cells, insert or delete rows, or change 
the validation or formatting characteristics of any cell. If the FCC 
cannot load your files into its databases as a result of 
modifications to the file, you will be required to correct and 
resubmit those files. Filers must save each Form 477 as a separate 
spreadsheet file. Do not submit multiple Form 477 worksheets within 
a single Excel 2002 workbook or as multiple levels in a single Lotus 
file. (Filers choosing to submit Form 477(s) on a floppy 
diskette(s), or compact disc(s), may place multiple spreadsheet 
files on a single diskette or compact disc.)

    Each file name must adhere to the following convention:

[[Page 30274]]

SSTHyearname.XLS or SSTHyearname.WK4; where:

SS is the two letter post office abbreviation for the state.
T is a single character representing principal filing type. Since 
incumbent LEC (ILEC) data must be filed separately from non-ILEC data, 
this convention distinguishes the files. In addition, this character is 
used to distinguish refiled and redacted data. Use the following codes:
    A = original filing for non-ILEC operations
    B = original filing for ILEC operations
    C = original redacted filing for non-ILEC operations
    D = original redacted filing for ILEC operations
    E = revised filing for non-ILEC operations
    F = revised filing for ILEC operations
    G = revised redacted filing for non-ILEC operations
    H = revised redacted filing for ILEC operations
# is a ``sequence number'' (i.e., 1, 2, 3, etc.) to be used to 
differentiate what would otherwise be identically named files when the 
file names are constructed according to the convention specified here. 
If no such redundancy of file names occurs, use the number ``1'' in 
place of the character ``''.
H is the half of the year of the data being filed. Use: ``J'' for data 
as of June 30 ``D'' for data as of December 31
year is the last two digits of the year of the data being filed (e.g., 
for the filing due March 1, 2005, reported data will be as of December 
31, 2004, so 2004 = 04).
name is the name identified on Line 2 of the Cover Page of Form 477. If 
you use software that limits file names to 8 characters plus a three 
character file extension, then use a one-character name abbreviation 
and identify that name in the Certification Statement.
Example: NCB1D04BellSouth.XLS or NCB1D04BellSouth.WK4.
2. Additional Directions for Filing
    Filers must submit the original, signed paper copy of the 
Certification Statement (which is the single page that constitutes 
Section V of these Instructions). The Certification statement must be 
signed in ink by an officer of the filer of one of the legal entities 
whose data is included. An officer is a person who occupies a position 
specified in the articles of incorporation (or partnership agreement), 
and would typically be president, vice president for operations, vice 
president for finance, comptroller, treasurer or a comparable position. 
If the filer is a sole proprietorship, the owner must sign the 
certification.

C. Requesting Confidentiality

    Some information from the FCC Form 477 may be made publicly 
available. Any respondent to this form may submit a request that 
information on the FCC Form 477 not be made routinely available for 
public inspection by so indicating on Line 10 of the Cover Page of the 
form and on the Certification Statement. See also 47 CFR 0.457, 0.459, 
1.7001(d), 43.11(c); Examination of the Current Policy Concerning the 
Treatment of Confidential Information Submitted to the Commission, FCC 
98-184 (rel. Aug. 4, 1998). Respondents seeking confidential treatment 
of data in an electronic file must provide a separate version of that 
file in which the specific items of data the filer believes to be 
privileged and confidential are redacted. Note that a redacted file 
must be given a different name from the complete version of the file, 
as specified above. Redacted data should be replaced with xxxxxx (Note: 
enter precisely six x's) in the redacted version of the file.

D. Obligation To File Revisions

    Filers must submit a revised form if the filer discovers a 
significant error in the data. For counts, a difference amounting to 5 
percent of the filed number must be refiled. For percentages, a 
difference of 5 percentage points is significant and must be refiled. 
Revisions should consist of a certification statement and one or more 
electronic files. Carriers should refile all data for a state if one or 
more data element must be revised. A refiled Form 477 spreadsheet 
should contain all appropriate data for the state, not just the 
corrected figures. Note that files containing revisions must be given 
different names from the original filings, as specified above, Section 
IV-B.1.

E. Compliance

    Service providers that are required to file the Form 477 but fail 
to do so may be subject to enforcement action under sections 502 and 
503 of the Communications Act and any other applicable law, 47 U.S.C. 
502, 503.

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VI. Glossary of Selected Terms Appearing on FCC Form 477

    The following selected terms are noted on FCC Form 477. The filer 
must interpret these terms in the specific context of the detailed 
reporting instructions, above. All terms are as defined for the 
specific purposes of this information collection.

Part I: Broadband

    Broadband: Lines (or wireless channels) that terminate at an end 
user location, connect the end user to the Internet, and carry 
information--at the end-user location--at information transfer rates 
exceeding 200 kilobits per second (kbps) in at least one direction.
    End user: Residential, business, institutional and government 
entities who use services for their own purposes and who do not resell 
such services to other entities. (For purposes of this information 
collection, an Internet Service Provider is not an ``end user'' of a 
broadband connection.)
    Local loop: For purposes of this data collection, the ``last mile'' 
facilities (either wired or wireless) between a central office and the 
end-user premises in a telephone network, a node and the end-user 
premises in a cable network, or the analogous portion of the facilities 
of other providers of telephone service or broadband connections.
    Mass-market end user premises: Residential living units (e.g., 
single family dwellings and individual households in multiple dwelling 
units such as apartments, condominiums, mobile home parks, etc.) and 
also individual living units in such institutional settings as college 
dormitories and nursing homes. Also includes small businesses to the 
extent that the filer considers small business end users to be target 
customers for broadband services that the filer (including affiliates), 
or the filer's agents, primarily design for, or market to, residential 
end users.
    Own local loop facilities: Those local loop facilities that the 
filer (including affiliates) actually owned as well as facilities that 
the filer obtained the right to use from unaffiliated entities as dark 
fiber or satellite transponder capacity (and that the filer used as 
part of its own system). For the purposes of Part I of this data 
collection, the term does not include unbundled network element (UNEs), 
special access lines, and other leased lines the filer obtained from an 
unaffiliated entity and equipped as broadband.
    Residential and small business: For the purposes of Part I of Form 
477, end users that have a broadband connection of a type (as indicated 
by, e.g., information transfer rates, features, and price) that is most 
typically associated with (i.e., primarily designed, marketed to, and 
purchased by) residential end users.

Part II: Wireline and Fixed Wireless Local Telephone

    Default interstate long distance carrier: The (facilities-based or 
reseller) carrier to which an interstate long distance call is routed 
automatically, without the use of any access code by the end user.
    End user: Residential, business, institutional and government 
entities who use services for their own purposes and who do not resell 
such services to other entities.
    Local loop: See the definition provided for Part I, above.
    Own local loop facilities: Those local loop facilities connecting 
to end-user premises that the filer (including affiliates) actually 
owned as well as facilities the filer obtained the right to use from 
unaffiliated entities as dark fiber or satellite transponder capacity 
(and that the filer used as part of its own system). For the purposes 
of Part II of this data collection, the term does not include telephone 
lines provided over UNE loops that the filer obtained from an 
unaffiliated carrier.
    Residential and small business: For the purposes of Part II of Form 
477, lines in service to end-user locations to which the filer provides 
fewer than four (4) voice-grade equivalent lines. Also, the term 
includes any lines the filer (or its affiliate or agent) provides to a 
shared-tenant service provider in an apartment building.
    UNE-Platform: The combination of unbundled network elements (UNEs) 
consisting of loop UNE, switching UNE, and transport UNE. (Unbundled 
network elements are defined in the FCC Rules. See 47 CFR 51.319.)
    Voice-grade equivalent: Generally, the number of DS0 (64 kbps) 
lines/channels in a higher-capacity circuit. In the specific context of 
Part II of Form 477, see ``Note for reporting channelized service'' in 
the detailed instructions, above.
    Voice telephone service: Local exchange or exchange access services 
that allow end users to originate and/or terminate local telephone 
calls on the public switched network, whether used by the end user for 
voice telephone calls or for other types of calls carried over the 
public switched network (for example, lines used for facsimile 
equipment or lines used occasionally or exclusively for ``dial-up'' 
connection to the Internet).

Part III: Mobile Local Telephone

    Default interstate long distance carrier: The (facilities-based or 
reseller) carrier to which an interstate long distance call is routed 
automatically, without the use of any access code by the end user.
    Mobile voice telephony subscribers: A mobile handset, car-phone, or 
other revenue-generating, active, voice unit that has a unique phone 
number and that can place and receive calls from the public switched 
network.
    Own facilities: Spectrum for which the filer (including affiliates) 
holds a license, manages, or has obtained the right to use via lease or 
other agreement with a Band Manager.

VII. Disclosure, Privacy Act, Paperwork Reduction Act Notice

    The Privacy Act of 1974 and the Paperwork Reduction Act of 1995 
require that when we ask you for information, we must first tell you 
our legal right to ask for the information, why we are asking for it, 
and how it will be used. We must also tell you what could happen if we 
do not receive it and whether your response is voluntary, required to 
obtain a benefit, or mandatory under the law. See Privacy Act of 1974, 
Pub. L. 93-579, December 31, 1974, 5 U.S.C. 552a (e)(3), and the 
Paperwork Reduction Act of 1995, Pub. L. 104-13, 44 U.S.C. 3501, et 
seq.
    Our legal right to ask for this information is sections 1.7000-
1.7002, 20.15, 43.01, 43.11 of the Federal Communications Commission's 
rules. 47 CFR 1.7000-1.7002, 20.15, 43.01, 43.11. Your response is 
mandatory.
    This collection of information stems from the Commission's 
authority under sections 4(i), 201, 218-220, 251-252, 303(r), 332, and 
403 of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 
201, 218-220, 251-252, 303(r), 332, and 403, and section 706 of the 
Telecommunications Act of 1996. The data in the worksheet will be used 
to monitor the deployment of broadband services and the development of 
local telephone service competition. Selected information provided in 
the worksheet will be made available to the public in a manner 
consistent with the Commission's rules and orders. We have estimated 
that each response to this collection of information will take, on 
average, xx hours. Note that many companies will file multiple 
responses and that this estimated average reflects the fact that many 
companies will be required to file only a single service count that 
should be readily available from internal company records. Our estimate 
includes

[[Page 30277]]

the time to read the instructions, look through existing records, 
gather and maintain the required data, enter the data in a Form 477 
spreadsheet, prepare a floppy diskette or compact disc (if the filer 
decides to submit completed Form 477(s) by a method other than e-mail) 
and certification, and actually file the report. If you have any 
comments on this estimate, or how we can improve the collection and 
reduce the burden it causes you, please write the Federal 
Communications Commission, AMD-PERM, Washington, DC 20554, Paperwork 
Reduction Project (3060-0816). We also will accept your comments via 
the Internet if you send them to [email protected]. Do not send 
completed FCC form 477 to this address. Remember--You are not required 
to respond to a collection of information sponsored by the Federal 
government, and the government may not conduct or sponsor this 
collection, unless it displays a currently valid Office of Management 
and Budget (OMB) control number. This collection has been assigned an 
OMB control number of 3060-0816.
    The Commission is authorized under the Communications Act of 1934, 
as amended, to collect the personal information we request in this 
form. If we believe there may be a violation or potential violation of 
a statute or a Commission regulation, rule, or order, your filing may 
be referred to the Federal, State, or local agency responsible for 
investigating, prosecuting, enforcing, or implementing the statute, 
rule, regulation, or order. In certain cases, the information in your 
worksheet may be disclosed to the Department of Justice, court, or 
other adjudicative body when (a) the Commission; or (b) any employee of 
the Commission; or (c) the United States government, is a party to a 
proceeding before the body or has an interest in the proceeding.
    Reporting entities failing to file the worksheet in a timely 
fashion may be subject to penalties under the Communications Act, 
including sections 502 and 503(b).

List of Subjects

47 CFR Parts 1 and 43

    Communications common carriers, Reporting and recordkeeping 
requirements, Telecommunications, Telephone.

47 CFR Part 20

    Communications common carriers.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 04-11322 Filed 5-26-04; 8:45 am]
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