[Federal Register Volume 69, Number 110 (Tuesday, June 8, 2004)]
[Proposed Rules]
[Pages 31930-31939]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-12830]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[CC Docket No. 92-105; FCC 04-111]


The Use of N11 Codes and Other Abbreviated Dialing Arrangements

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Commission seeks comment on various 
abbreviated dialing arrangements that could be used by state ``One 
Call'' notification systems in compliance with the Pipeline Safety 
Improvement Act of 2002 (the Pipeline Safety Act). We seek comment on 
whether an N11 code, a code using a leading star or number sign, or 
another three-digit number should be assigned to comply with the 
Pipeline Safety Act. We also seek comment on implementation issues such 
as the integration of existing One Call Center numbers, an appropriate 
implementation timeframe for each proposed abbreviated dialing 
arrangement, and whether we should delegate authority to the state 
commissions to address implementation issues.

DATES: Comments are due on or before July 8, 2004. Reply comments are 
due on or before July 23, 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. See 
SUPPLEMENTARY INFORMATION for further filing instructions.

FOR FURTHER INFORMATION CONTACT: Regina Brown, Attorney, Wireline 
Competition Bureau, Telecommunications Access Policy Division, (202) 
418-7400, TTY (202) 418-0484.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking in CC Docket No. 92-105 released on May 14, 
2004. The full text of this document is available for public inspection 
during regular business hours in the FCC Reference Center, Room CY-
A257, 445 12th Street, SW., Washington, DC 20554.

I. Introduction

    1. In this Notice of Proposed Rulemaking, (Notice) May 14, 2004, we 
seek comment on various abbreviated dialing arrangements that could be 
used by state ``One Call'' notification systems in compliance with the 
Pipeline Safety Improvement Act of 2002 (the Pipeline

[[Page 31931]]

Safety Act). A One Call notification system is a communication system 
established by operators of underground facilities and/or state 
governments in order to provide a means for excavators and the general 
public to notify facility operators in advance of their intent to 
engage in excavation activities. One Call Centers, which cover 
different geographic areas, are generally accessed by dialing a toll-
free or local telephone number. Our objective in initiating this 
proceeding is to assess possible abbreviated dialing arrangements to 
use to access state One Call Centers, while at the same time, seeking 
to minimize any adverse impact on numbering resources. We seek comment 
on whether an N11 code, a code using a leading star or number sign, or 
another three-digit number should be assigned to comply with the 
Pipeline Safety Act. We also seek comment on implementation issues such 
as the integration of existing One Call Center numbers, an appropriate 
implementation timeframe for each proposed abbreviated dialing 
arrangement, and whether we should delegate authority to the state 
commissions to address implementation issues.

II. Discussion

A. Abbreviated Dialing Arrangements

1. N11 Codes
    2. Background. N11 codes are abbreviated dialing arrangements that 
enable callers to connect to a location in the public switched 
telephone network by dialing only three digits, where ``N'' represents 
one of the digits from 2-9. Thus, the network must be pre-programmed to 
translate the three-digit code into the appropriate seven or ten-digit 
dialing sequence and route the call accordingly. Because there are only 
eight possible N11 codes (211, 311, 411, 511, 611, 711, 811, 911), N11 
codes are among the scarcest of resources under the Commission's 
jurisdiction.
    3. To date, the Commission has assigned the 211 for information and 
referral services, 311 for non-emergency police and other governmental 
services, 511 for travel and information services, 711 for telephone 
relay services for the hearing impaired, and 911 as the national 
emergency number. In addition, 411, 611 and 811 are widely used by 
carriers, but have not been assigned by the Commission for nationwide 
use. N11 codes that have not been assigned nationally can continue to 
be assigned for local uses, provided that such use can be discontinued 
on short notice.
    4. Discussion. We seek comment on using an N11 code for access to 
One Call Centers. Specifically, we seek comment on which N11 code 
should be assigned for this purpose. When advocating a specific N11 
code, we ask parties to explain why the proposed N11 code is preferred. 
We also seek comment on the NANC's recommendation that we assign 811. 
According to the NANC, 811 is the best alternative for satisfying the 
requirement in the Pipeline Safety Act to assign a three-digit code 
because 811 will have less impact on customer dialing patterns and can 
be implemented without the substantial cost and delay of switch 
development required with an alternative like 344 or 344. The 
NANC determined that using 811 to access One Call Centers consumes 
fewer numbering resources than other alternative abbreviated dialing 
arrangements.
    5. Commenters should also address whether we should incorporate the 
One Call access service with existing N11 codes, such as 311 or 511, to 
preserve the few remaining N11 codes. For example, should we also 
assign 311, which is currently assigned for non-emergency police and 
other governmental services, for access to One Call Centers? Commenters 
should describe the advantages and disadvantages of such an approach. 
We ask commenters that advocate shared use of an existing N11 code to 
propose solutions to mitigate the concerns expressed by the NANC.
2. Codes Using a Leading Star or Number Sign
    6. Background. The leading star and number signs serve as network 
control characters to speed up connections. The star indicates to the 
switching system that the digits following specify a certain desired 
feature/service from the switch. The dial equivalent to the star is the 
digits 1-1 and is used instead of the star when activating or 
deactivating a vertical service from a rotary phone.
    7. Vertical Service Codes (VSCs) are codes that use a leading star. 
They are numbering resources maintained and administered by the North 
American Numbering Plan Administrator (NANPA). Specifically, VSCs are 
customer-dialed codes that allow customers to access features and 
services provided by telecommunications service providers. The format 
of a VSC is *XX or *2XX (touchtone) and 11XX or 112XX (rotary). 
Services that rely on VSCs include call forwarding, which is activated 
by dialing *72 or 1172, automatic callback, and customer-originated 
trace.
    8. The number key has generally been used to stop any switch timing 
protocol and immediately process the call and for control in telephone 
systems, such as voicemail (86). In addition, the number key 
is used by Operator Services switching systems to re-originate a credit 
card call with the same billing information used in the preceding call. 
It is also used for control in telephone systems, such as voicemail. 
There is no dialed equivalent to the number sign character since, 
unlike the star character, the number sign is not used in the dialing 
sequence.
    9. Discussion. We seek comment on whether a code with a leading 
star or number sign should be used to access One Call Centers. 
Commenters that propose the use of a code with a leading star or number 
sign should specify the code that should be used. We also seek comment 
on the extent to which using a code with a leading star or number sign 
will either promote or discourage exhaustion of NANP numbers.
    10. Implementation of the 344 (DIG) code in the 
wireless sector has been in progress since 1999. The NANC recommends 
that, because of the effort that has gone into wireless implementation 
of 344, calls from wireless customers to One Call Centers 
should continue to be permitted, but it does not recommend the use of a 
code with a leading star or number sign for the purpose of complying 
with the statute's requirement to utilize a ``three-digit'' number to 
access One Call Centers.
    11. The NANC raises several concerns with respect to using a code 
with a leading star or number sign. First, the NANC maintains that 
codes using a leading star or number sign would not achieve the 
uniformity mandated by the Pipeline Safety Act since all users would 
not be dialing the same sequence. For example, an abbreviated dialing 
code using a leading star sign would require rotary customers to dial 
the digits ``1-1'' in place of the star. Second, many Private Branch 
Exchange systems use the star and/or number signs for feature access. 
Thus, the NANC believes that reprogramming these systems may not always 
be feasible and will involve considerable customer expense. Third, the 
NANC states that some switching systems are not capable of processing 
access codes using a leading star or number sign in the dialing 
sequences and the necessary switch development would delay the full 
implementation of the One Call functionality. Therefore, the NANC does 
not recommend assigning a code using a leading star or number sign as 
the One Call abbreviated dialing code. We seek comment on the

[[Page 31932]]

issues raised by the NANC. Specifically, we ask parties to discuss any 
existing measures that can mitigate or alleviate the limitations with 
using a leading star or number sign.

B. Establishment of 344 as an Abbreviated Dialing Code

    12. Background. Easily Recognizable Codes (ERCs) are Numbering Plan 
Areas (NPAs) or area codes designating special services, e.g., 888 for 
toll-free service. The NANPA has assigned certain area codes as ERCs. 
The second and third digits of an ERC are the same (e.g., 344). 
Although the 344 NPA has not yet been allocated, there are NPAs in 
which 344 is assigned as a central office code (NXX). The DOT requests 
the establishment of an abbreviated dialing arrangement that uses the 
digits ``344'' (which corresponds to the digits of the 344 ERC) to 
access One Call centers throughout the country. Alternatively, DOT 
requests a substitute mnemonic three-digit abbreviated dialing 
arrangement.
    13. Discussion. We seek comment on DOT's proposal to establish the 
digits ``344'' as an abbreviated dialing arrangement for access to One 
Call Centers or any other mnemonic three-digit abbreviated dialing 
arrangement for this purpose. We tentatively conclude that because 344 
corresponds to an ERC, an abbreviated dialing code in the format of an 
ERC or other area code would be inconsistent with our numbering 
resource optimization policies by potentially rendering eight million 
NANP telephone numbers unusable.
    14. The NANC raises several other concerns with respect to 
establishing an abbreviated dialing code that corresponds to the digits 
of an ERC. First, the NANC is concerned that the selection of an ERC 
for this purpose may set a precedent for similarly using other NPAs 
that would accelerate NANP exhaust. Second, according to the NANC, 
unlike areas where ten-digit dialing has been implemented, where seven-
digit dialing is permissible, most wireline switches would need to 
implement an inter-digit timeout method to distinguish between calls to 
either the One Call Center or calls to a telephone number whose central 
office code has the same digits as the abbreviated dialing code. Thus, 
the NANC asserts that calls may be inappropriately routed to the One 
Call Center or may be interpreted by the end user as a problem with the 
service. If the call is interpreted by the end user as a service 
problem, they may hang up and not reinitiate contact with the One Call 
Center. Third, NANC states that existing switches may not be able to 
accommodate 344 as an abbreviated dialing code. For example, the NANC 
notes that switches may be unable to: (1) resolve code conflict where 
344 is a working NXX and seven-digit dialing is allowed; and (2) 
support 344 as a three-digit code even where 344 is not a working NXX 
and/or ten-digit dialing is required.
    15. We seek comment on the issues raised by the NANC and whether 
there are existing measures that can address these issues. We also seek 
comment as to the extent switch development or replacement may be 
needed and the impact this will have on nationwide implementation.

C. Implementation Issues

1. Integration of Existing One Call Center Numbers
    16. The Pipeline Safety Act expressly mandates use of a three-digit 
toll-free number to access State One Call Centers. We seek comment on 
methods to ensure that calls to One Call Centers are ``toll-free.'' So 
that callers do not incur toll charges, the NANC recommends that each 
One Call Center provide a toll-free number, which can be an 8YY number 
or any number that is not an IntraLATA toll call from the area to be 
served. When a caller dials the abbreviated dialing code, the carriers 
would translate the abbreviated dialing code into the appropriate toll-
free or local number. We seek comment on the NANC's recommendation. We 
also seek comment on whether the dialing sequence should be the same 
for all providers or whether existing abbreviated dialing sequences, 
e.g., 344, should be allowed to continue.
2. Originating Switch Location
    17. We also seek comment on whether the originating NPA-NXX should 
determine the One Call Center into which the number will be translated. 
For example, in establishing a framework for its evaluation of various 
abbreviated dialing arrangements to implement the Pipeline Safety Act, 
the NANC assumed that for wireline-originated calls, the originating 
NPA-NXX would determine the One Call Center to which the call is sent. 
For wireless-originated calls, the NANC assumed that the originating 
Mobile Switch Center would determine the One Call Center to which the 
call is sent.
3. Timeframe for Implementation
    18. We seek comment on the timeframe for implementing each 
abbreviated dialing arrangement proposed in this Notice. In light of 
the various technical and operational issues, we ask parties to comment 
on all of the steps that carriers must undertake to prepare the network 
for use of the various abbreviated dialing arrangements to route 
properly such calls to the One Call Centers. We seek comment on the 
timeframe for proper transition if existing abbreviated dialing 
sequences, such as 344, are eliminated. We also seek comment 
on what timeframe should be given to carriers to vacate any existing 
uses, if an unassigned N11 code, such as 811, is selected to access One 
Call Centers. We ask parties to provide suggested timeframes that will 
allow carriers to complete those steps as expeditiously as possible. We 
also seek comment on the technical and operational issues that should 
be considered when adopting a time period for implementation that will 
allow carriers sufficient time to prepare the network for use of each 
proposed abbreviated dialing arrangement.
    19. For example, if an N11 code is selected, existing uses of the 
selected N11 code need to be vacated. The NANC estimates that an 
individual carrier's implementation time for an N11 code, such as 811, 
ranges from a few months to one year. Further, the NANC estimates that 
all other alternatives such as 344 or 344 will require switch 
development by some vendors, which can take one to three years before 
the new parameters can be released and installed. According to the 
NANC, certain switches have limited or no switch development support 
and may require replacement. Thus, implementation of a three-digit 
solution for certain switches may not be possible until after the 
switch features are activated. We seek comment on the NANC's 
recommendation of approximately one to two years to prepare the network 
to support One Call notification to existing One Call Centers.
    20. Further, we seek comment on whether the timeframes for 
implementation should be uniform or based on local conditions. If 
timeframes are based on local conditions, we seek comment on what the 
basis should be for establishing different timeframes. We also seek 
comment on whether, pursuant to section 251(e), we should delegate 
authority to the states to establish the timeframe for implementation. 
We seek comment on how best to engage states in the implementation 
process, e.g., industry workshops or other public forums, to help 
address the technical and operational issues.

[[Page 31933]]

II. Procedural Matters

A. Regulatory Flexibility Analysis

    21. As required by the Regulatory Flexibility Act, see 5 U.S.C. 
section 603, the Commission has prepared an Initial Regulatory 
Flexibility Analysis (IRFA) for the Notice. Comments on the IRFA should 
be labeled as IRFA Comments, and should be submitted pursuant to the 
filing dates and procedures set forth in paragraphs 23-29, infra.

B. Paperwork Reduction Act Analysis

    22. This Notice does not contain a proposed or modified information 
collection.

C. Filing Procedures

    23. Pursuant to sections 1.415 and 1.419 of the Commission's rules, 
interested parties may file comments on or before July 8, 2004, and 
reply comments on or before July 23, 2004. In order to facilitate 
review of comments and reply comments, parties should include the name 
of the filing party and the date of the filing on all pleadings. 
Comments may be filed using the Commission's Electronic Comment Filing 
System (ECFS) or by filing paper copies.
    24. Comments filed through the ECFS can be sent as an electronic 
file via the Internet to http://www.fcc.gov/cgb/ecfs. Generally, only 
one copy of an electronic submission must be filed. If multiple docket 
or rulemaking numbers appear in the caption of this proceeding, 
however, commenters must transmit one electronic copy of the comments 
to each docket or rulemaking number referenced in the caption. In 
completing the transmittal screen, commenters should include their full 
name, U.S. Postal Service mailing address, and the applicable docket or 
rulemaking number. Parties may also submit an electronic comment by 
Internet e-mail. To get filing instructions for e-mail comments, 
commenters should send an e-mail to [email protected], and should include 
the following words in the body of the message, ``get form.'' A sample 
form and directions will be sent in reply. Or you may obtain a copy of 
the ASCII Electronic Transmittal Form (FORM-ET) at http://www.fcc.gov/e-file/email.html.
    25. Parties that choose to file by paper must file an original and 
four copies of each filing. Filings can be sent by hand or messenger 
delivery, by commercial overnight courier, or by first-class or 
overnight U.S. Postal Service mail (although we continue to experience 
delays in receiving U.S. Postal Service mail). The Commission's 
contractor, Natek, Inc., will receive hand-delivered or messenger-
delivered paper filings for the Commission's Secretary at a new 
location in downtown Washington, DC. The address is 236 Massachusetts 
Avenue, NE., Suite 110, Washington, DC 20002. The filing hours at this 
location will be 8 a.m. to 7 p.m. All hand deliveries must be held 
together with rubber bands or fasteners. Any envelopes must be disposed 
of before entering the building.
    26. Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743. U.S. Postal Service first-class mail, 
Express Mail, and Priority Mail should be addressed to 445 12th Street, 
SW., Washington, DC 20554. All filings must be addressed to the 
Commission's Secretary, Office of the Secretary, Federal Communications 
Commission.

------------------------------------------------------------------------
 If you are sending this type of document    It should be addressed for
    or using this delivery method . . .           delivery to . . .
------------------------------------------------------------------------
Hand-delivered or messenger-delivered       236 Massachusetts Avenue,
 paper filings for the Commission's          NE., Suite 100, Washington,
 Secretary.                                  DC 20002 (8 to 7 p.m.)
Other messenger-delivered documents,        9300 East Hampton Drive,
 including documents sent by overnight       Capitol Heights, MD 20743
 mail (other than United States Postal       (8 a.m. to 5:30 p.m.)
 Service Express Mail and Priority Mail).
United States Postal Service first-class    445 12th Street, SW.,
 mail, Express Mail, and Priority Mail.      Washington, DC 20554.
------------------------------------------------------------------------

    27. Parties who choose to file by paper should also submit their 
comments on diskette. These diskettes, plus one paper copy, should be 
submitted to: Sheryl Todd, Telecommunications Access Policy Division, 
Wireline Competition Bureau, Federal Communications, at the filing 
window at 236 Massachusetts Avenue, NE., Suite 110, Washington, DC 
20002. Such a submission should be on a 3.5-inch diskette formatted in 
an IBM compatible format using Word or compatible software. The 
diskette should be accompanied by a cover letter and should be 
submitted in ``read only'' mode. The diskette should be clearly labeled 
with the commenter's name, proceeding (including the docket number, in 
this case WC Docket No. 02-60, type of pleading (comment or reply 
comment), date of submission, and the name of the electronic file on 
the diskette. The label should also include the following phrase ``Disk 
Copy--Not an Original.'' Each diskette should contain only one party's 
pleadings, preferably in a single electronic file. In addition, 
commenters must send diskette copies to the Commission's copy 
contractor, Qualex International, Portals II, 445 12st Street, SW., 
Room CYB-402, Washington, DC 20554 (see alternative addresses above for 
delivery by hand or messenger).
    28. Regardless of whether parties choose to file electronically or 
by paper, parties should also file one copy of any documents filed in 
this docket with the Commission's copy contractor, Qualex 
International, Portals II, 445 12th Street, SW., CY-B402, Washington, 
DC 20554 (see alternative addresses above for delivery by hand or 
messenger) (telephone 202-863-2893; facsimile 202-863-2898) or via e-
mail at [email protected].
    29. The full text of this document is available for public 
inspection and copying during regular business hours at the FCC 
Reference Information Center, Portals II, 445 12th Street, SW., Room 
CY-A257, Washington, DC 20554. This document may also be purchased from 
the Commission's duplicating contractor, Qualex International, Portals 
II, 445 12th Street, SW., Room CY-B402, Washington, DC 20554, telephone 
(202) 863-2893, facsimile (202) 863-2898, or via e-mail 
[email protected].

D. Further Information

    30. Alternative formats (computer diskette, large print, audio 
recording, and Braille) are available to persons with disabilities by 
contacting Brian Millin at (202) 418-7426 voice, (202) 418-7365 TTY, or 
[email protected]. This Notice can also be downloaded in Microsoft Word 
and ASCII formats at http://www.fcc.gov/ccb/universalservice/highcost.

Initial Regulatory Flexibility Analysis (Notice of Proposed Rulemaking)

    31. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), the Commission has prepared the present Initial 
Regulatory Flexibility Analysis (IRFA) of the possible significant 
economic impact on a substantial number of small entities by the 
policies and rules proposed in this Notice of Proposed Rulemaking

[[Page 31934]]

(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 the Notice provided above in Section VI(C). 
The Commission will send a copy of the Notice, including this IRFA, to 
the Chief Counsel for Advocacy of the Small Business Administration. In 
addition, the Notice and IRFA (or summaries thereof) will be published 
in the Federal Register.

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

    32. In this Notice, we seek comment on various abbreviated dialing 
arrangements that could be used by state ``One Call'' notification 
systems in compliance with the Pipeline Safety Improvement Act of 2002 
(the Pipeline Safety Act). A One Call notification system is a 
communication system established by operators of underground facilities 
and/or state governments in order to provide a means for excavators and 
the general public to notify facility operators in advance of their 
intent to engage in excavation activities. One Call Centers, which 
cover different geographic areas, are generally accessed by dialing a 
toll-free or local telephone number. Our objective in initiating this 
proceeding is to assess possible abbreviated dialing arrangements to 
use to access state One Call Centers, while at the same time, seeking 
to minimize any adverse impact on numbering resources. We seek comment 
on whether an N11 code, a code using a leading star or number sign, or 
another three-digit number should be assigned to comply with the 
Pipeline Safety Act. We also seek comment on implementation issues such 
as the integration of existing One Call Center numbers, an appropriate 
implementation timeframe for each proposed abbreviated dialing 
arrangement, and whether we should delegate authority to the state 
commissions to resolve implementation issues. We tentatively conclude 
that an abbreviated dialing code in the format of an Easily 
Recognizable Code or other area code would be inconsistent with our 
numbering resource optimization policies by potentially rendering eight 
million telephone numbers unusable.

2. Legal Basis

    33. This Notice is adopted pursuant to sections 1, 4(i), 4(j), 201-
205, 251, 252, and 303 of the Communications Act of 1934, as amended, 
47 U.S.C. sections 151, 154(i), (j), 201-205, 251, 252, and 303.

3. Description and Estimate of the Number of Small Entities To Which 
the Proposed Rules Will Apply

    34. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that will be 
affected by the proposed rules. The RFA generally defines the term 
``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A small business concern is one which: (1) Is independently owned 
and operated; (2) is not dominant in its field of operation; and (3) 
satisfies any additional criteria established by the Small Business 
Administration (SBA).
a. Telecommunications Service Entities
(i) Wireline Carriers and Service Providers
    35. We have included small incumbent local exchange carriers 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 telephone communications business having 1,500 
or fewer employees), and ``is not dominant in its field of operation.'' 
The SBA's Office of Advocacy contends that, for RFA purposes, small 
incumbent local exchange carriers are not dominant in their field of 
operation because any such dominance is not ``national'' in scope. We 
have therefore included small incumbent local exchange carriers in this 
RFA analysis, although we emphasize that this RFA action has no effect 
on Commission analyses and determinations in other, non-RFA contexts.
    36. Incumbent Local Exchange Carriers. Neither the Commission nor 
the SBA has developed a small business size standard specifically for 
incumbent local exchange services. The appropriate size standard under 
SBA rules is for the category 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 have reported 
that they are engaged in the provision of incumbent 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 our 
action.
    37. Competitive Local Exchange Carriers, Competitive Access 
Providers, ``Shared-Tenant Service Providers,'' and ``Other Local 
Service Providers.'' Neither the Commission nor the SBA has developed a 
small business size standard specifically for these service providers. 
The appropriate size standard under SBA rules is for the category 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 carriers have reported that they are engaged in the provision 
of either competitive access provider services or competitive local 
exchange carrier services. Of these 609 carriers, an estimated 458 have 
1,500 or fewer employees and 151 have more than 1,500 employees. In 
addition, 16 carriers have reported that they are ``Shared-Tenant 
Service Providers,'' and all 16 are estimated to have 1,500 or fewer 
employees. In addition, 35 carriers have reported that they are ``Other 
Local Service Providers.'' Of the 35, an estimated 34 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, ``Shared-Tenant Service 
Providers,'' and ``Other Local Service Providers'' are small entities 
that may be affected by our action.
    38. Local Resellers. The SBA has developed a small business size 
standard for the category of Telecommunications Resellers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees. According to Commission data, 133 carriers have reported 
that they are engaged in the provision of local resale services. Of 
these, an estimated 127 have 1,500 or fewer employees and six have more 
than 1,500 employees. Consequently, the Commission estimates that the 
majority of local resellers are small entities that may be affected by 
our action.
    39. Toll Resellers. The SBA has developed a small business size 
standard for the category of Telecommunications Resellers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees. According to Commission data, 625 carriers have reported 
that they are engaged in the provision of toll resale services. Of 
these, an estimated 590 have 1,500 or fewer employees and 35 have more 
than 1,500 employees. Consequently, the Commission estimates that the 
majority of toll

[[Page 31935]]

resellers are small entities that may be affected by our action.
    40. Payphone Service Providers. Neither the Commission nor the SBA 
has developed a small business size standard specifically for payphone 
services providers. The appropriate size standard under SBA rules is 
for the category Wired Telecommunications Carriers. Under that size 
standard, such a business is small if it has 1,500 or fewer employees. 
According to Commission data, 761 carriers have reported that they are 
engaged in the provision of payphone services. Of these, an estimated 
757 have 1,500 or fewer employees and four have more than 1,500 
employees. Consequently, the Commission estimates that the majority of 
payphone service providers are small entities that may be affected by 
our action.
    41. Interexchange Carriers. Neither the Commission nor the SBA has 
developed a small business size standard specifically for providers of 
interexchange services. The appropriate size standard under SBA rules 
is for the category 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 carriers have reported that they are 
engaged in the provision of interexchange service. Of these, 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 
IXCs are small entities that may be affected by our action.
    42. Operator Service Providers. Neither the Commission nor the SBA 
has developed a small business size standard specifically for operator 
service providers. The appropriate size standard under SBA rules is for 
the category Wired Telecommunications Carriers. Under that size 
standard, such a business is small if it has 1,500 or fewer employees. 
According to Commission data, 23 carriers have reported that they are 
engaged in the provision of operator services. Of these, an estimated 
22 have 1,500 or fewer employees and one has more than 1,500 employees. 
Consequently, the Commission estimates that the majority of OSPs are 
small entities that may be affected by our action.
    43. Prepaid Calling Card Providers. Neither the Commission nor the 
SBA has developed a small business size standard specifically for 
prepaid calling card providers. The appropriate size standard under SBA 
rules is for the category Telecommunications Resellers. Under that size 
standard, such a business is small if it has 1,500 or fewer employees. 
According to Commission data, 37 carriers have reported that they are 
engaged in the provision of prepaid calling cards. Of these, an 
estimated 36 have 1,500 or fewer employees and one has more than 1,500 
employees. Consequently, the Commission estimates that the majority of 
prepaid calling card providers are small entities that may be affected 
by our action.
(ii) Wireless Telecommunications Service Providers
    44. Wireless Service Providers. The SBA has developed a small 
business size standard for wireless firms within the two broad economic 
census categories of ``Paging'' and ``Cellular and Other Wireless 
Telecommunications.'' Under both SBA categories, a wireless business is 
small if it has 1,500 or fewer employees. For the census category of 
Paging, Census Bureau data for 1997 show that there were 1,320 firms in 
this category, total, that operated for the entire year. Of this total, 
1,303 firms had employment of 999 or fewer employees, and an additional 
17 firms had employment of 1,000 employees or more. Thus, under this 
category and associated small business size standard, the majority of 
firms can be considered small. For the census category Cellular and 
Other Wireless Telecommunications, Census Bureau data for 1997 show 
that 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 second category and size standard, 
the majority of firms can, again, be considered small.
    45. Cellular Licensees. The SBA has developed a small business size 
standard for wireless firms within the broad economic census category 
``Cellular and Other Wireless Telecommunications.'' Under this SBA 
category, a wireless business is small if it has 1,500 or fewer 
employees. For the census category Cellular and Other Wireless 
Telecommunications firms, Census Bureau data for 1997 show that 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 category and size standard, the great 
majority of firms can be considered small. According to the most recent 
Trends in Telephone Service data, 719 carriers reported that they were 
engaged in the provision of cellular service, Personal Communications 
Service, or Specialized Mobile Radio Telephony services, which are 
placed together in the data. We have estimated that 294 of these are 
small, under the SBA small business size standard.
    46. Common Carrier Paging. The SBA has developed a small business 
size standard for wireless firms within the broad economic census 
categories of ``Cellular and Other Wireless Telecommunications.'' Under 
this SBA category, a wireless business is small if it has 1,500 or 
fewer employees. For the census category of Paging, Census Bureau data 
for 1997 show that there were 1,320 firms in this category, total, that 
operated for the entire year. Of this total, 1,303 firms had employment 
of 999 or fewer employees, and an additional 17 firms had employment of 
1,000 employees or more. Thus, under this category and associated small 
business size standard, the great majority of firms can be considered 
small. In the Paging Third Report and Order, 62 FR 16004, April 3, 
1997, we developed a small business size standard for ``small 
businesses'' and ``very small businesses'' for purposes of determining 
their eligibility for special provisions such as bidding credits and 
installment payments. 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. 
Additionally, a ``very small business'' is an entity that, together 
with its affiliates and controlling principals, has average gross 
revenues that are not more than $3 million for the preceding three 
years. The SBA has approved these small business size standards. An 
auction of Metropolitan Economic Area licenses commenced on February 
24, 2000, and closed on March 2, 2000. Of the 985 licenses auctioned, 
440 were sold. Fifty-seven companies claiming small business status 
won. According to the most recent Trends in Telephone Service, 433 
carriers reported that they were engaged in the provision of paging and 
messaging services. Of those, we estimate that 423 are small, under the 
SBA approved small business size standard.
    47. 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 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

[[Page 31936]]

years. The SBA has approved these small business size standards. The 
Commission auctioned geographic area licenses in the wireless 
communications services. In the auction, there were seven winning 
bidders that qualified as ``very small business'' entities, and one 
that qualified as a ``small business'' entity.
    48. Wireless Telephony. Wireless telephony includes cellular, 
personal communications services, and specialized mobile radio 
telephony carriers. As noted earlier, the SBA has developed a 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. 
According to the most recent Trends in Telephone Service data, 719 
carriers reported that they were engaged in the provision of wireless 
telephony. We have estimated that 294 of these are small under the SBA 
small business size standard.
    49. 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. Subsequent events, 
concerning Auction 35, including judicial and agency determinations, 
resulted in a total of 163 C and F Block licenses being available for 
grant. In addition, we note that, as a general matter, the number of 
winning bidders that qualify as small businesses at the close of an 
auction does not necessarily represent the number of small businesses 
currently in service. Also, the Commission does not generally track 
subsequent business size unless, in the context of assignments or 
transfers, unjust enrichment issues are implicated.
    50. Narrowband Personal Communications Services. To date, two 
auctions of narrowband 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, 65 FR 35875, June 6, 2000. A ``small business'' is an entity 
that, together with affiliates and controlling interests, has average 
gross revenues for the three preceding years of not more than $40 
million. A ``very small business'' is an entity that, together with 
affiliates and controlling interests, has average gross revenues for 
the three preceding years of not more than $15 million. The SBA has 
approved these small business size standards. In the future, the 
Commission will auction 459 licenses to serve Metropolitan Trading 
Areas 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 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. 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.
    51. 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 category provides that a 
small business is a wireless company employing no more than 1,500 
persons. According to the Census Bureau data for 1997, only 12 wireless 
firms out of a total of 1,238 such firms that operated for the entire 
year, had 1,000 or more employees. 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.
    52. 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, 62 FR 16004, April 3, 1997, 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 Licenses, and 875 Economic Area 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.
    53. 800 MHz and 900 MHz Specialized Mobile Radio Licenses. The 
Commission awards ``small entity'' and ``very small entity'' bidding 
credits in

[[Page 31937]]

auctions for Specialized Mobile Radio (SMR) geographic area licenses in 
the 800 MHz and 900 MHz bands to firms that had revenues of no more 
than $15 million in each of the three previous calendar years, or that 
had revenues of no more than $3 million in each of the previous 
calendar years, respectively. These bidding credits apply to SMR 
providers in the 800 MHz and 900 MHz bands that either hold geographic 
area licenses or have obtained extended implementation authorizations. 
The Commission does not know how many firms provide 800 MHz or 900 MHz 
geographic area SMR service pursuant to extended implementation 
authorizations, nor how many of these providers have annual revenues of 
no more than $15 million. One firm has over $15 million in revenues. 
The Commission assumes, for purposes here, that all of the remaining 
existing extended implementation authorizations are held by small 
entities, as that term is defined by the SBA. The Commission has held 
auctions for geographic area licenses in the 800 MHz and 900 MHz SMR 
bands. There were 60 winning bidders that qualified as small or very 
small entities in the 900 MHz SMR auctions. Of the 1,020 licenses won 
in the 900 MHz auction, bidders qualifying as small or very small 
entities won 263 licenses. In the 800 MHz auction, 38 of the 524 
licenses won were won by small and very small entities. Consequently, 
the Commission estimates that there are 301 or fewer small entity SMR 
licensees in the 800 MHz and 900 MHz bands that may be affected by the 
rules and policies adopted herein.
    54. 700 MHz Guard Band Licensees. In the 700 MHz Guard Band Order, 
65 FR 17599, April 4, 2000, we adopted a small business size standard 
for ``small businesses'' and ``very small businesses'' for purposes of 
determining their eligibility for special provisions such as bidding 
credits and installment payments. A ``small business'' as an entity 
that, together with its affiliates and controlling principals, has 
average gross revenues not exceeding $15 million for the preceding 
three years. Additionally, a ``very small business'' is an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues that are not more than $3 million for the preceding 
three years. An auction of 52 Major Economic Area licenses commenced on 
September 6, 2000, and closed on September 21, 2000. Of the 104 
licenses auctioned, 96 licenses were sold to nine bidders. Five of 
these bidders were small businesses that won a total of 26 licenses. A 
second auction of 700 MHz Guard Band licenses commenced on February 13, 
2001 and closed on February 21, 2001. All eight of the licenses 
auctioned were sold to three bidders. One of these bidders was a small 
business that won a total of two licenses.
    55. 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. 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.
    56. 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.
    57. 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.
    58. 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.
    59. 39 GHz Service. The Commission created a special small business 
size standard for 39 GHz licenses--an entity that has average gross 
revenues of $40 million or less in the three previous calendar years. 
An additional size standard for ``very small business'' is: an entity 
that, together with 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. The auction of the 2,173 
39 GHz licenses began on April 12, 2000 and closed on May 8, 2000. The 
18 bidders who claimed small business status won 849 licenses. 
Consequently, the Commission estimates that 18 or fewer 39 GHz 
licensees are small entities that may be affected by the rules and 
policies adopted herein.
    60. Multipoint Distribution Service, Multichannel Multipoint 
Distribution Service, and ITFS. Multichannel Multipoint Distribution 
Service 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. Of the 67 auction winners, 61 met the definition of a 
small business. MDS also includes licensees of stations

[[Page 31938]]

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.
    61. 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 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.
    62. 218-219 MHz Service. The first auction of 218-219 MHz spectrum 
resulted in 170 entities winning licenses for 594 Metropolitan 
Statistical Area licenses. Of the 594 licenses, 557 were won by 
entities qualifying as a small business. For that auction, the small 
business size standard was an entity that, together with its 
affiliates, has no more than a $6 million net worth and, after federal 
income taxes (excluding any carry over losses), has no more than $2 
million in annual profits each year for the previous two years. In the 
218-219 MHz Report and Order and Memorandum Opinion and Order, 64 FR 
59656, November 3, 1999, we established a small business size standard 
for a ``small business'' as an entity that, together with its 
affiliates and persons or entities that hold interests in such an 
entity and their affiliates, has average annual gross revenues not to 
exceed $15 million for the preceding three years. A ``very small 
business'' is defined as an entity that, together with its affiliates 
and persons or entities that hold interests in such an entity and its 
affiliates, has average annual gross revenues not to exceed $3 million 
for the preceding three years. We cannot estimate, however, the number 
of licenses that will be won by entities qualifying as small or very 
small businesses under our rules in future auctions of 218-219 MHz 
spectrum.
    63. 24 GHz--Incumbent Licensees. This analysis may affect incumbent 
licensees who were relocated to the 24 GHz band from the 18 GHz band, 
and applicants who wish to provide services in the 24 GHz band. The 
applicable SBA small business size standard is that of ``Cellular and 
Other Wireless Telecommunications'' companies. This category 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. Thus, under this size 
standard, the great majority of firms can be considered small. These 
broader census data notwithstanding, we believe that there are only two 
licensees in the 24 GHz band that were relocated from the 18 GHz band, 
Teligent and TRW, Inc. It is our understanding that Teligent and its 
related companies have less than 1,500 employees, though this may 
change in the future. TRW is not a small entity. Thus, only one 
incumbent licensee in the 24 GHz band is a small business entity.
    64. 24 GHz--Future Licensees. With respect to new applicants in the 
24 GHz band, the small business size standard for ``small business'' is 
an entity that, together with controlling interests and affiliates, has 
average annual gross revenues for the three preceding years not in 
excess of $15 million. ``Very small business'' in the 24 GHz band is an 
entity that, together with controlling interests and affiliates, has 
average gross revenues not exceeding $3 million for the preceding three 
years. The SBA has approved these small business size standards. These 
size standards will apply to the future auction, if held.
4. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements
    65. Depending on which alternative is ultimately chosen to comply 
with the Pipeline Safety Act, there will be some cost associated with 
our action. We invite comment on any possible costs.
5. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered
    66. The RFA requires an agency to describe any significant, 
specifically small business, alternatives that it has considered in 
reaching its proposed approach, which may include the following four 
alternatives (among others): (1) The establishment of differing 
compliance or reporting requirements or timetables that take into 
account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance or 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.
    67. We will consider any proposals made to minimize any significant 
economic impact on small entities. The overall objective of this 
proceeding is to assess possible nationwide toll-free abbreviated 
dialing arrangements to use to access state One Call Centers as 
mandated by the Pipeline Safety Act. Depending on which alternative is 
ultimately chosen to comply with the Pipeline Safety Act, the 
establishment of a three-digit code for any purpose may eliminate use 
of those numbers as Numbering Plan Areas, rendering approximately eight 
million telephone numbers useless. Thus, such assignment of a toll-free 
abbreviated dialing arrangement to implement the Pipeline Safety Act 
may potentially impact three-digit numbering resources and the design 
and operation of the three-digit One Call system. We, therefore, seek 
comment on abbreviated dialing arrangements that comply with the 
requirements of the Pipeline Safety Act while at the same time 
minimize, to the extent possible, any adverse impact on numbering 
resources. In addition, we have discussed the possible costs of switch 
development, and encourage

[[Page 31939]]

comment on how we might reduce this carrier cost, including such costs 
for small entities.
6. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules
    68. None.

III. Ordering Clauses

    69. Pursuant to the authority contained in sections 1, 4(i), 4(j), 
201-205, 214, 254, and 403 of the Communications Act of 1934, as 
amended, this Notice of Proposed Rulemaking is adopted.
    70. Pursuant to the authority contained in sections 1, 4(i), 4(j), 
201-205, 214, 254, and 403 of the Communications Act of 1934, as 
amended, 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.

List of Subjects in 47 CFR Part 54

    Reporting and recordkeeping requirements, Telecommunications, 
Telephone.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 04-12830 Filed 6-7-04; 8:45 am]
BILLING CODE 6712-01-P