[Federal Register Volume 69, Number 249 (Wednesday, December 29, 2004)]
[Rules and Regulations]
[Pages 77912-77938]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-28415]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1, 20, and 43

[WC Docket No. 04-141; FCC 04-266]


Local Telephone Competition and Broadband Reporting

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
extends and modifies 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: The rules in this document contain information collection 
requirements that have not been approved by OMB. The Federal 
Communications Commission will publish a document in the Federal 
Register announcing the effective date.
    Compliance date: September 1, 2005. Providers subject to the 
requirements and regulations adopted herein shall complete and file the 
amended FCC Form 477 on the compliance date and semiannually 
thereafter.

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 Report 
and Order (Order) in WC Docket No. 04-141, adopted on November 9, 2004, 
and released on November 12, 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, Best Copy and Printing, Inc., Room CY-B402, 445 
Twelfth Street, SW., Washington, DC 20554, telephone (202) 488-5300, 
facsimile (202) 488-5563, or through www.bcpiweb.com.

Paperwork Reduction Act

    This Order contains modified information collection requirements 
subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-
13. It will be submitted to OMB for review under section 3507(d) of the 
PRA.

Summary of the Report and Order

    1. In this Order, we adopt rules and a standardized form to improve 
our Form 477 local competition and broadband data gathering program, 
including extending the program for five years beyond its currently 
designated sunset in March 2005, eliminating existing reporting 
thresholds, and gathering more granular data from service providers. 
The information collected in the Form 477 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 improvements we adopt here, 
which include some but not all of the modifications proposed in our 
recent Data Collection NPRM, are necessary to ensure that the 
Commission can continue to effectively evaluate broadband and local 
competition developments as they affect all Americans. At the same 
time, we have acted to minimize, wherever possible, the administrative 
burdens imposed on reporting entities by the modified Form 477 program.
    2. The Data Gathering Order 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. The 
Commission concluded that collecting this information would materially 
improve its ability to develop, evaluate, and revise policy in these 
rapidly changing areas and provide valuable benchmarks for Congress, 
the Commission, other policy makers, and consumers. Since adoption of 
the Form 477 in 2000, broadband service providers and local telephone 
service providers have reported data ten times, and we have issued 
regular reports based in significant part on this information. In the 
Data Gathering Order, the Commission adopted a sunset provision 
pursuant to which the collection program terminates after five years 
(i.e., in March 2005) unless the Commission acts to extend it.
    3. Form 477 includes separate sections on broadband deployment, 
local telephone service competition, and mobile telephone service 
provision. In the Data Gathering Order, the Commission required 
entities to report only when they meet or exceed defined reporting 
thresholds, and, then, to complete only those portions of the form for 
which they meet or exceed the reporting thresholds. The Commission 
required entities that meet a threshold to file data on a state-by-
state basis. The Commission also required facilities-based providers of 
broadband connections and local exchange carriers (LECs) to report 
lists of the 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.
    4. In the Data Collection NPRM, we proposed to: (1) Extend the data 
collection for an additional five years; (2) modify Form 477 to collect 
more-detailed information about broadband connection speeds and the 
localized deployment of broadband technologies; (3) collect information 
about subscribership to bundled local and interstate long distance 
telephone services; and (4) eliminate or revise those local telephone 
service questions that elicit imprecise or infrequently used 
information. We also invited comment on whether we should eliminate or 
lower the current reporting thresholds; modify our policies for 
publishing or sharing Form 477 data; require filers to categorize 
broadband connections according to the information transfer rates 
observed by end users; and require filers to report numbers of 
broadband connections in service by Zip Code or technology, or, 
alternatively, by Zip Code, technology, and speed.
    5. We have considered the record of this proceeding, including 
comment about reporting burdens associated with current Form 477 
reporting requirements, potential burdens associated with additional 
reporting requirements proposed or otherwise noticed for discussion in 
the Data Collection NPRM, and potential burdens associated with 
alternatives suggested by the parties, as well as our experience with 
the Form 477 to date. As discussed below, in this Order we: (1) Extend 
the Form 477 program for five years beyond

[[Page 77913]]

its currently designated sunset in March 2005; (2) eliminate reporting 
thresholds; and (3) adopt various modifications to the Form 477.
    6. Five-Year Extension. We conclude that it is reasonable to extend 
the Form 477 program for five years beyond the current March 2005 
sunset given our statutory obligations to study and report on the 
availability of broadband capability, as well as our continuing 
obligations to promote telecommunications services competition 
generally. We conclude that extending the Form 477 program for an 
additional five years with the modifications discussed below will 
materially improve the Commission's ability to develop, evaluate, and 
revise policy in the rapidly changing areas of broadband deployment and 
local telephone competition, and provide valuable benchmarks for 
Congress, the Commission, other policy makers, and consumers. As 
discussed in more detail in the following sections and in the Final 
Regulatory Flexibility Analysis attached to this Order, we also 
conclude that extending the Form 477, as modified, will not impose an 
undue burden on the entities that are required to report. In this 
regard, we have taken or will take the following steps to reduce 
associated burdens: (1) We decline to adopt certain modifications to 
the Form 477 proposed in the Data Collection NPRM, including the 
proposed requirement that filers categorize broadband connections 
according to the information transfer rate (speed) actually observed by 
the end user; (2) we eliminate various questions from the wireline 
local telephone section of the form; (3) we eliminate the requirement 
that filers seeking confidential treatment of Form 477 data prepare and 
submit a separate, redacted Form 477; (4) responding to comments 
submitted by the Office of Advocacy of the Small Business 
Administration, we will publish a Small Entity Compliance Guide to 
provide a set of user-friendly explanations to direct small entities to 
those sections of the Form 477 relevant to their operations.
    7. We reject calls for extending the Form 477 program for less than 
five years because our statutory responsibilities to study and report 
on broadband deployment and encourage the development of local 
telephone service competition are on-going. We find that a five-year 
extension is prudent given continuing and rapidly-evolving developments 
in broadband and local telephone services markets. Reviewing the 
adequacy of our form at regular intervals is essential to ensure that 
it is, in fact, capturing the most relevant and critical information 
given the dynamic nature of these markets. Accordingly, we affirm our 
analysis and conclusion in the Data Gathering Order, namely, that a 
five-year program best balances our continuing need to understand 
evolving market developments against our desire to minimize costs and 
ensure that adopted regulation does not outlive its usefulness. 
Moreover, we disagree with comments that the availability of 
alternative data sources is an adequate substitute for the Form 477. In 
our experience, most if not all commercially available studies of 
residential services adoption derive their data in significant part 
from the Commission's Form 477-based public reports. And, no nationwide 
studies of broadband deployment or of local telephone competition are 
based on better sources of data for rural and other hard-to-serve 
areas. Voluntary membership surveys conducted by commenters NTCA and 
OPASTCO, and also by the National Exchange Carrier Association (NECA), 
provide welcome evidence that the incumbent LECs that respond to the 
surveys are deploying broadband services to substantial--and 
increasing-- percentages of their customer base. Entities that choose 
not to participate in these voluntary surveys may have a different 
experience. By contrast, surveys such as those about Internet use 
conducted by the Pew Internet & American Life Project, and the Census 
Bureau's Current Population Survey, use random samples that are 
constructed to avoid overlooking particular population groups. To 
obtain statistically significant results for particular rural 
populations, however, a large (and therefore expensive) random sample 
is required. For example, because the random sample (of about 57,000 
households) for the Current Population Survey does not over-sample 
households located in rural areas in particular states, the Department 
of Commerce was able to discuss nationwide differences between rural 
and urban households in its report, A Nation Online: How Americans Are 
Expanding Their Use of the Internet (February 2002), but was not able 
to discuss such differences within particular states. Similarly, the 
Pew Internet & American Life Project has compared only nationwide 
differences in Internet use by residents of rural and urban areas on 
the basis of random samples of about 20,000 Americans age 18 and older.
    8. Elimination of Reporting Thresholds. We also modify the Form 477 
program to require all facilities-based providers of broadband 
connections to end users to report broadband data, all local exchange 
carriers to report local telephone service data, and all mobile 
telephone carriers to report mobile telephone data. In reaching this 
conclusion, we note that comments from state agencies, and from some 
service providers, generally supported eliminating, or substantially 
reducing, the reporting thresholds. As we stated in the Data Collection 
NPRM, we believe that the current data collection misses several 
hundred small facilities-based broadband providers, e.g., rural 
incumbent LECs, wireless Internet service providers, and 
municipalities. Moreover, we agree with those commenters who argue that 
it is important to capture a more accurate picture of broadband 
deployment and local telephone competition in rural, sparsely populated 
areas, which are more likely to be served by small carriers.
    9. In reaching our conclusion, we recognize that in the Data 
Gathering Order the Commission concluded that a reporting threshold for 
broadband and local competition appropriately balanced its need for an 
inclusive reporting requirement against the burdens imposed on small 
entities. At the same time, the Commission stated ``[we] are committed 
to revising these thresholds (either upward or downward) should it be 
necessary based either on our experience or on changes in the relevant 
markets.'' And, the Commission pointed out that ``[by] excluding any 
providers we necessarily face the possibility of understating the 
amount of competitive activity and broadband deployment in smaller, 
rural areas.'' Based on our experience with the Form 477 over the past 
nearly five years, we now conclude that the current thresholds render 
impossible a thorough understanding of the dynamics of broadband 
deployment in states with rural and/or underserved areas. We find that 
lowering the existing thresholds to some other, more or less arbitrary, 
number means that certain of these areas will continue to elude our 
scrutiny. Such a result seems inimical to Congress's charge, in section 
706 of the Act, that we make determinations on the ``availability of 
advanced telecommunications capability to all Americans.'' Thus, we 
believe that are better equipped to make sound policy determinations 
affecting the broadband market to the extent we have the most accurate 
and comprehensive data possible upon which to base our decisions.

[[Page 77914]]

    10. Similarly, based on our extensive experience in collection 
local competition data, we now conclude that we must gather an 
appropriate amount of information about the status of local competition 
from all areas of the country. We believe that the current 10,000 line 
reporting threshold significantly understates the amount of local 
competition in states that include rural and/or other underserved 
areas. As a result, our understanding of rural and underserved market 
development is not as precise as it could be. Having more accurate 
information about competition in rural markets will assist the 
Commission in its review of portability and eligibility policies. 
Merely lowering existing thresholds to some arbitrary number does not 
overcome this problem or mitigate its effects.
    11. Moreover, this problem predictably will only get worse as 
networks continue to evolve, i.e., as network architectures reflect the 
continued convergence of traditional telephony and broadband. Given 
such convergence, which was only at its initial stages when we adopted 
the Data Gathering Order almost five years ago, it becomes essential 
that our broadband and local competition data collection methodologies 
are equally comprehensive. We therefore conclude that we should collect 
local telephone service information on the same comprehensive basis 
upon which we collect information about broadband connections.
    12. We conclude that the benefits to the policy making process that 
derive from the additional data outweigh the reporting burdens on new 
Form 477 filers (i.e., entities that would not be required to file Form 
477 if we retained the current mandatory reporting thresholds). As we 
noted in the Data Collection NPRM, the small facilities-based broadband 
providers that currently file Form 477 on a voluntary basis find that 
only a few questions apply to their situations. Moreover, among the 
smaller entities that are currently required to report broadband data 
on Form 477 (i.e., entities that report between 250 and 499 broadband 
connections in a state), 68 percent reported connections in only one 
technology category, and 98 percent reported connections in two or 
fewer technology categories. Accordingly, we conclude that the 
broadband reporting requirements we adopt here are not overly 
burdensome for small providers. Similarly, among the smaller incumbent 
LECs that are currently required to report wireline local telephone 
data (i.e., carriers that report between 10,000 and 24,999 voice-grade 
equivalent local exchange lines), 95 percent report only one of the 
five rows of information that will appear in the modified form. 
Therefore, we conclude that the local telephone reporting requirements 
we adopt here are not overly burdensome for small carriers. We also 
note that, for many new incumbent LEC filers, some answers (e.g., 
percent of local exchange lines provided over the filer's own local 
loops) are unlikely to change from filing to filing, and that, more 
generally, filers will be able to complete their filings more 
efficiently as they gain experience with the data collection. We 
conclude that it is not possible to develop an adequately comprehensive 
picture of broadband deployment and local telephone competition in the 
United States without including information about the situation in 
rural, sparsely populated areas. As NECA emphasizes, the more than 
1,100 rural carriers that belong to NECA's Traffic Sensitive pool 
generally serve sparse populations over wide geographical areas--
frequently fewer than 10 customers per square mile. Therefore, we 
conclude that the benefits to policy making of developing a more 
accurate picture of broadband deployment and local telephone 
competition--including in rural, sparsely populated areas--outweigh the 
costs of reporting that we impose on carriers that have previously been 
exempt from filing Form 477.
    13. We recognize, however, the particular concerns about reporting 
burden that have been raised by smaller incumbent LECs, and we 
consequently decide not to pursue at this time certain options about 
which we requested comment in the Data Collection NPRM. In particular, 
we decide not to require filers to determine what information transfer 
rate an end user actually observes on his or her broadband connection, 
and, as discussed below, we also decide to eliminate from the form 
several questions about local telephone service.
    14. Broadband Data. Based on our review of the record in this 
proceeding and on our experience with the Form 477, we adopt a number 
of modifications to the broadband data collected by the Form 477. We 
conclude that these modifications are necessary to ensure that we have 
a full picture of developing broadband deployment trends nationwide. 
First, we modify the Form 477 to require filers to determine what 
percentage of their broadband or high-speed connections are faster than 
200 kbps in both directions, and to categorize these connections into 
five ``speed tiers'' based on the information transfer rate in the 
connection's faster direction: (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. Some comments in this 
proceeding assert that collecting information about connections with 
very high speeds (e.g., above 10 mbps) would be irrelevant (e.g., 
because connections operating at such speeds are now not generally 
available to consumers in the United States). As we noted in the Fourth 
706 Report, however, we have observed some service providers offering 
faster and faster connections, perhaps because they are able to do so 
at relatively little cost, and thereby differentiate their products 
from competitors' slower services. As these faster services are 
introduced, it is vitally important that we understand the evolving 
dynamics of higher speed broadband availability in order to fulfill our 
statutory responsibilities to report about whether broadband capability 
is available to all Americans.
    15. We also modify Form 477 to require filers to report symmetric 
xDSL broadband connections separately from traditional wireline (such 
as T-carrier) connections, and to separately report broadband 
connections delivered over electric power lines. Thus, we require 
filers to report broadband connections in the following technology 
categories: asymmetric xDSL, symmetric xDSL, traditional wireline (such 
as T-carrier), cable modem, optical carrier (fiber to the end user), 
satellite, terrestrial fixed wireless, terrestrial mobile wireless, 
electric power line, or ``all other.'' In contrast to asymmetric xDSL, 
symmetric xDSL is well-suited to applications, such as 
videoconferencing, that require high-speed capacity in the upstream 
path as well as the downstream path. When Form 477 was implemented, it 
was the Commission's understanding that symmetric xDSL service was 
being deployed and marketed principally to businesses, as a substitute 
for the more traditional T-carrier services, and the Commission 
therefore specified that symmetric xDSL connections should be reported 
along with connections over ``other traditional wireline'' 
technologies. We now observe that some symmetric xDSL services are 
being offered to residential end users. For example, while we note that 
information about a broad range of symmetric high-speed xDSL services 
appears in marketing materials, such as Web pages, that are directed to 
business customers, we also observe that some

[[Page 77915]]

relatively low priced symmetric xDSL connections are being advertised 
on Web pages identified specifically for residential customers. We 
therefore disagree with comments that it is unnecessary or meaningless 
to distinguish symmetric xDSL services from traditional wireline 
services in the data collection. We also decide to establish electric 
power line as a separate broadband technology category to enable us to 
monitor its deployment specifically.
    16. Additionally, we modify Form 477 to require incumbent LECs that 
report DSL connections (or whose affiliates report DSL connections) to 
report the extent to which DSL connections are available to the 
residential end user premises to which the incumbent LEC offers local 
telephone service. Similarly, we modify Form 477 to require cable 
system operators that report cable modem connections (or whose 
affiliates report cable modem connections) to report the extent to 
which cable modem connections are available to the residential end user 
premises to which the cable system offers cable television service. We 
adopt these requirements in order to obtain state-level 
``availability'' estimates from the major providers of the broadband 
services with the greatest residential acceptance in the United States 
to date, to better enable us to monitor the extent to which these 
broadband platforms are available to all Americans, and to ascertain 
with more precision the pattern of competition between these platforms.
    17. In response to commenter concerns, we modify the availability 
metric that we proposed in the Data Collection NPRM to conform more 
closely with the system-wide metrics with which cable system operators 
are generally familiar. By relying as much as possible on such industry 
practices, we believe that we can collect, in a minimally burdensome 
manner, more-detailed information about the extent to which the widely 
deployed and widely utilized cable modem and DSL infrastructures are 
available to potential residential end users in a minimally burdensome 
manner. We note that residential broadband connections in service in 
the United States are primarily cable modem or DSL connections. Because 
of the relatively small numbers of residential subscribers to broadband 
services that are provided by means of satellite, fixed wireless, 
mobile wireless, optical carrier, and other technologies, at this time, 
we do not require providers of those services to report availability 
estimates. We may, however, propose to do so in the future if 
circumstances warrant.
    18. We also modify Form 477 to require all filers that report 
information about wired or fixed wireless broadband connections to end 
user locations to report technology-specific lists of the Zip Codes in 
which at least one such connection is in service. Specifically, we 
require separate such lists for connections provided by mean of 
asymmetric xDSL, symmetric xDSL, cable modem, optical carrier (fiber to 
the end user), satellite, terrestrial fixed wireless, electric power 
line, and (as a single category) other wireline technologies. With 
respect to mobile wireless broadband services, which are now beginning 
to be deployed commercially, we note that the end user of such a 
service must be within a broadband service coverage area to make use of 
the service, but may move around within and among coverage areas. 
Particularly during the initial stages of commercial deployment, 
moreover, there may be a mismatch between the billing addresses of some 
early-adopter subscribers, such as persons who travel frequently on 
business, and the physical locations where the subscriber can actually 
use the service. Because of the particular characteristics of mobile 
services, some have argued that CMRS providers should be completely 
exempt from reporting broadband data on Form 477. We disagree. Rather, 
we acknowledge that mobile broadband services differ in particular 
respects from fixed broadband services and make provision for such 
differences in this data collection. In particular, we specify that 
mobile wireless service providers will report the number of subscribers 
to their mobile wireless broadband services. And, we require, at this 
time, that filers reporting mobile wireless broadband subscribers on 
Form 477 also provide a list of Zip Codes that best represent the 
filer's mobile wireless broadband coverage areas. We observe mobile 
wireless broadband service providers using Zip Code-based information 
in their own marketing initiatives, and we conclude that providing such 
information on Form 477 will not be overly burdensome.
    19. Finally, we note that various commenters argued that the 
Commission did not adequately identify and justify the need for the 
broadband (and local competition) reporting modifications proposed in 
the Data Collection NPRM. We disagree. In the Data Collection NPRM, we 
carefully noted justifications for gathering information about 
broadband deployment and local telephone competition in the Form 477. 
We also stated that additional information ``would be extremely 
useful'' in identifying and tracking relevant developments, 
particularly in rural areas. Moreover, in the context of broadband 
deployment, we specifically noted ``the emergence of competing 
platforms to deliver high-speed services, increasing data speeds of 
services offered, and a steady improvement in mass-market acceptance of 
services.'' Our discussion of changes to the current Form 477 was 
clearly tied to these observations, as well as to the Commission's 
experience with the Form 477. We have carefully reviewed the record 
developed in response to these proposals, and find that it supports 
extending the Form 477 program with the modifications adopted in this 
Order. We also draw attention to the Commission's statements in its 
most recent Report to Congress, pursuant to section 706 of the 1996 
Act, regarding the availability of broadband services in the United 
States. In that Report, the Commission affirmed the need to track 
broadband deployment in sparsely served, rural areas, as well as the 
need to better track the developing consumer appetite for broadband 
services at speeds well in excess of the Commission's current minimum 
200 kbps speed. We find that all of the Form 477 modifications proposed 
in the Data Collection NPRM and adopted here derive from these two 
basic concerns, as well as from regulatory mandates imposed by section 
706 of the Telecommunications Act of 1996 and, more generally, by the 
Communications Act.
    20. Local Telephone Data. Based on our review of the record in this 
proceeding and our experience with the Form 477, we adopt far fewer 
modifications to the local telephone data reported on the form. In 
fact, we adopt only two. First, we modify Form 477 to require LECs to 
report the extent to which they are also the end user's default 
interstate long distance carrier. We disagree with those commenters 
that argued such information is not relevant for monitoring local 
telephone service competition. As we noted in the Data Collection NPRM, 
consumers increasingly can choose among telephone service offerings 
that permit both local and long distance calling, often for a single 
price. Indeed, it appears to us that offering combinations of services 
at attractive prices appears to be an important, rapidly evolving way 
for providers to compete by providing potential end users more, and 
higher value, choices. It is important for us to more precisely 
understand how such

[[Page 77916]]

bundling affects the overall development of local telephone service 
competition.
    21. Second, we modify Form 477 to require LECs to report their use 
of UNE loops to serve their own end-user customers separately from 
their use of UNE-Platform to do so. Because the current form does not 
require this distinction to be made, we are not able at this time to 
compare data and thereby evaluate, for accuracy and completeness, the 
information reported to us about the numbers of UNE loops and UNE-
Platform provided to unaffiliated carriers. Therefore, we modify the 
form to require LECs to report the extent to which they provision 
voice-grade equivalent lines to their own local telephone service 
customers over their own local loop facilities (or the fixed wireless 
last-mile equivalent), over UNE loops obtained from an unaffiliated 
carrier without switching, over UNE-Platform, or by reselling another 
carrier's services (such as Centrex or special access) or facilities 
obtained under commercial arrangements.
    22. Finally, to simplify the form and thus minimize reporting 
burdens where possible, we eliminate from the Form 477 several 
questions about local telephone service that, in our experience, have 
confused filers or otherwise have provided information of limited 
usefulness. Specifically, we eliminate current requirements that force 
LECs to: (1) Estimate the types of customers unaffiliated carriers 
serve by means of the lines and UNE arrangements the LEC provides; (2) 
report the extent to which they use local loop facilities they own and 
UNE loops they obtain from another carrier to provision the services 
the LEC provides to unaffiliated carriers for resale; and (3) report 
information related to ``collocation'' arrangements with unaffiliated 
carriers.
    23. We also eliminate the current requirement that LECs report on 
the Form 477 information about special access circuits that they 
provide to unaffiliated carriers or to end users. (Filers' use of 
channelized special access circuits to provide local exchange service 
to their own end user customers will continue to be reflected in the 
Form 477 data, however.) The current Form 477 collects information 
about the number of special access circuits provided to unaffiliated 
carriers or end users irrespective of the capacity of those circuits 
(e.g., DS1, DS3, OCn), which seriously limits the usefulness of these 
data in evaluating the extent of competition. We may, however, consider 
collecting more precise information about special access services in 
the future if circumstances warrant. Finally, we decide not to adopt 
the proposal in the Data Collection NPRM to require mobile telephone 
carriers to report the extent to which they are the default interstate 
long distance carrier for the mobile telephone subscribers they report.
    24. Other Issues. We will retain our current policies and 
procedures regarding the confidential treatment of submitted Form 477 
data, including the exclusive use of aggregated data in our published 
reports. Moreover, we have decided not to adopt a different approach 
with regard to historical data. Almost all commenters supported our 
current data protection policies, and most argued that even historical 
data remains competitively sensitive. We believe our current policies 
and procedures afford more than adequate protection to any entity 
submitting competitively sensitive information in the Form 477. We will 
continue, however, our current practice of publishing most of the local 
telephone information reported by the Bell operating companies after 
consultation with the individual companies.
    25. Because filers submitting Form 477 data routinely assert that 
some or all such data are competitively sensitive, we see no need to 
continue to require them to provide a separate, redacted file. 
Accordingly, we eliminate that requirement. We expect that this action 
by itself will substantially reduce the reporting burden imposed on a 
large number of individual filers.
    26. We also decide to retain our current policies and procedures 
regarding the sharing of Form 477 data with state commissions. Such 
data sharing only occurs where state entities formally declare to us 
that they are willing and able to treat submitted information subject 
to restrictions on data release that are at least as stringent as 
federal requirements. Commenters generally do not oppose continuing 
data-sharing arrangements on these terms.
    27. Upon careful consideration of the record in this proceeding, we 
decline to adopt certain modifications proposed or discussed in the 
Data Collection NPRM. We decide not to modify Form 477 to require 
filers to categorize broadband connections according to information 
transfer rate (speed) that is actually observed by the end user of the 
broadband connection. The record of this proceeding does not identify a 
methodology or practice that currently could be applied, consistently 
and by all types of broadband filers, to measure the information 
transfer rates actually observed by end users. Moreover, we expect 
broadband service providers to be mindful of general consumer 
protection law and to advertise their services with sufficient accuracy 
to enable end users to select the offering--as distinguished by ``speed 
tier'' and other features--that best fits the end user's needs and 
budget.
    28. We also decide not to require filers to report the number of 
broadband connections, by technology, in particular Zip Codes, or to 
report, for each Zip Code, any information about the number of 
connections provided in various ``speed tiers.'' Rather, by requiring 
filers to report technology-specific lists of broadband Zip Codes in 
the modified Form 477--and removing the reporting threshold to require 
all facilities-based broadband providers to report--we believe we will 
substantially enhance our ability to monitor the deployment of 
established and emerging broadband platforms. Moreover, the comments of 
several broadband providers asserted that developing the software and 
systems necessary to generate such Zip Code-level data would impose a 
large burden on the filer's financial and personnel resources, or would 
require a number of months to implement. Accordingly, we decline to 
require broadband providers to report this level of detail at this 
time. We continue to recognize, however, that the presence of reported 
subscribers in a Zip Code does not necessarily mean service is 
available throughout the Zip Code, and we may revisit our decisions 
about reporting detailed Zip Code-level data in the future. To this 
end, we direct the Wireline Competition Bureau to assess more fully the 
extent to which our Zip Code data adequately reflect the availability 
of service throughout a Zip Code and to report its conclusions in the 
next section 706 report.
    29. Similarly, we also decide not to adopt at this time any 
additional requirements that were not specifically proposed in the Data 
Collection NPRM. For example, we decide not to require broadband 
providers to report information about the prices at which they offer 
broadband services to end users in particular Zip Codes, to require 
mobile telephone carriers to estimate the percentage of wireless 
subscribers that use their service as a replacement for traditional 
landline service, or to require entities to report data according to 
city boundaries. We are not convinced at this time that potential 
benefits derived from collecting these additional data outweigh their 
associated costs.

[[Page 77917]]

Procedural Matters

Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the Data Collection NPRM (Notice). The Commission 
sought written public comment on the proposals in the Notice, including 
comment on the IRFA. The comments received are discussed below. This 
present Final Regulatory Flexibility Analysis (FRFA) conforms to the 
RFA.

I. Need for, and Objectives of, the Report and Order

    2. The Commission initiated this rulemaking and made 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 the Spring of 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 decisions reached in 
this Order will further that goal while minimizing burdens on 
marketplace competitors and innovators, as well as small businesses.

II. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA

    3. In the IRFA, we stated that we would seek to minimize the burden 
imposed on smaller entities by establishing requirements for reporting 
that balanced the needs of the Commission to receive data on the 
development of local competition and deployment of broadband against 
the burden such reporting places on smaller entities. In response to 
the Notice, the Commission received comments from 14 parties and reply 
comments from 7 parties. In addition, the Office of Advocacy, U.S. 
Small Business Administration (SBA), Verizon and the Vermont Public 
Service Department (VPSD) made ex parte presentations. Among those 
parties, only the SBA, the National Cable Television Association 
(NCTA), the National Telecommunications Cooperative Association (NTCA), 
and the Organization for the Promotion and Advancement of Small 
Telecommunications Companies (OPASTCO) commented specifically on the 
IRFA. We note that many other commenters raised issues about the 
proposed rules and we encourage readers of this FRFA to consult the 
complete text of this Order, which describes in detail our analysis of 
commenter proposals.
    4. In its ex parte presentation regarding the IRFA, the VPSD made 
recommendations to simplify the expanded Form 477 proposed in the 
Notice. In its ex parte presentation, SBA recommends that the 
Commission consider less burdensome alternatives for small carriers, 
such as simplifying the proposed Form 477 or establishing a ``short 
form or Form 477-EZ'' for small carriers previously exempt from 
reporting. OPASTCO stated that the Commission's estimated time to 
complete the proposed Form 477 of 15 hours is understated, and that the 
real number is 23 to 28 hours. NTCA agreed with OPASTCO and urged the 
Commission to develop a new Form 477 that will reduce the amount of 
information required from small carriers and take 30 minutes or less to 
complete. NTCA further stated that the lowering or removing of the 
current threshold exemption would result in an unwarranted burden on 
small carriers. NCTA further recommended that the Commission establish 
a new threshold of ``not lower than 100 broadband lines per state'' to 
reduce that burden, while at the same time achieving the Commission's 
objectives.
    5. In an effort to balance the needs of the Commission with the 
costs our data gathering may place on smaller entities, the Commission 
has taken the suggestions of OPASTCO, NTCA and the SBA and simplified 
the Form 477 proposed in the Notice. By doing so, we will lessen the 
burden on all entities required to submit reports. We believe that 
these modifications satisfy SBA's request that we significantly reduce 
the burdens for those small entities that must comply. Moreover, we 
conclude that these modifications will allow the Commission to comply 
with Congress' charge in section 706 of the 1996 Act to determine 
whether advanced telecommunications capability, commonly known as 
``broadband,'' is being deployed to all Americans. In order to gain the 
comprehensive understanding--as called for in section 706--of the 
broadband market, particularly in rural and inner-city areas and among 
demographic groups that are traditionally underserved, it is necessary 
to gather data from entities that are most likely to serve these areas 
and groups, which includes some smaller entities.
    6. Among the other actions taken to reduce the overall burden on 
small entities, we retain the ``decoupled'' feature where the broadband 
and local competition reporting requirements are separate on the Form 
477. Thus, we reduce reporting burdens on traditionally smaller 
providers by only requiring data that covers services they actually 
offer.
    7. To further reduce the potential burden this data gathering 
program may place on smaller entities, we retain several of the time-
saving and burden-reducing features of the original Form 477. 
Specifically, the report frequency remains semiannual. We still require 
carriers to report information about broadband connections and local 
telephone services on a state-by-state basis. To supplement this 
information, we ask providers of broadband connections and local 
exchange services to provide lists of the Zip Codes in which they serve 
at least one customer. Finally, we reaffirm that this reporting scheme 
continues to offer the best balance of our need to achieve 
geographically disaggregated information while minimizing burdens on 
all entities, including small entities.
    8. Overall, we believe that our approach (e.g., simplifying the 
form and retaining the burden-reducing features of the original Form 
477) will result in a program that is not overly burdensome on 
reporting entities, and thus balances the concerns raised by SBA and 
other commenters with the Commission's need to gain a better 
understanding of developments in these markets.

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

    9. 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 rules adopted herein. 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).
    10. 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, is the data that 
the Commission publishes in its Trends in Telephone Service report. The 
SBA has developed

[[Page 77918]]

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.
    11. We have included small incumbent local exchange carriers (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 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 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 determinations in other, non-RFA contexts.
    12. 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.
    13. Incumbent Local Exchange Carriers (ILECs). 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, 1,310 carriers reported that they were engaged in the 
provision of local exchange services. Of these 1,310 carriers, an 
estimated 1,025 have 1,500 or fewer employees and 285 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.
    14. 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, 563 companies reported that they were 
engaged in the provision of either competitive access provider services 
or competitive local exchange carrier services. Of these 563 companies, 
an estimated 472 have 1,500 or fewer employees and 91 have more than 
1,500 employees. In addition, 37 carriers reported that they were 
``Other Local Exchange Carriers.'' Of the 37 ``Other Local Exchange 
Carriers,'' an estimated 36 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.
    15. 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, 281 companies reported 
that their primary telecommunications service activity was the 
provision of interexchange services. Of these 281 companies, an 
estimated 254 have 1,500 or fewer employees and 27 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.
    16. 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.
    17. 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.
    18. 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

[[Page 77919]]

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 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.
    19. 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.
    20. 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.
    21. 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.
    22. 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.
    23. 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.
    24. 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 less in annual receipts. According to 
Census Bureau data for 1997, in this category there was a total of 324 
firms

[[Page 77920]]

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.
    25. 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.
    26. 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.
    27. 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.
    28. 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.
    29. 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.
    30. 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. The license 
terms require the licensees to build their wireless facilities within 
ten years of the grant. As a result, more information on the licensees 
will become available in the year 2008, when the licensees are required 
to show the Commission that they have achieved substantial service as 
part of the application renewal process.
    31. 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

[[Page 77921]]

following activities: (1) Operate generation facilities that produce 
electric energy; (2) operate transmission systems that convey the 
electricity from 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 Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities

    32. The Order extends the data collection for five years and adopts 
changes to the Form 477 that will affect reporting, recordkeeping, and 
other compliance requirements. The Order requires all facilities-based 
providers of broadband connections to end users to report broadband 
data, all LECs to report local telephone service data, and all mobile 
telephone carriers to report mobile telephone data. The other changes 
to the Form 477 are described below.
    33. The Form 477 changes:
     Require cable systems that use (or whose affiliates or 
agents use) the cable system's own plant to provide broadband cable 
modem connections also to report a best estimate of the extent to which 
those connections are available to the residential end user premises to 
which the cable system offers cable programming service.
     Require ILECs that use (or whose affiliates or agents use) 
the ILEC's own telephone plant to provide broadband DSL connections 
also to report a best estimate of the extent to which those connections 
are available to the residential end user premises to which the ILEC 
provides local telephone service.
     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. (In the current Form 477 program, 
filers report the percentage of connections that are faster than 2 mbps 
in both directions.)
     In place of the previous requirement that all filers 
report broadband connections over ``other traditional wireline 
including symmetric xDSL technology'' at the end user location, require 
filers to report broadband connections separately for ``symmetric 
xDSL'' and ``traditional wireline such as T-carrier'' technologies.
     Require filers to report Zip Code lists separately for 
asymmetric xDSL, symmetric xDSL, cable modem, optical carrier (fiber to 
the end user), satellite, terrestrial fixed wireless, terrestrial 
mobile wireless, electric power line, and (as a single category) other 
technologies. (In the current Form 477 program, filers report a single 
list of Zip Codes in which the filer has at least one subscriber to 
broadband service without indicating the type of technology used.)
     Require filers to estimate the percentage of reported 
broadband connections that have information transfer rates exceeding 
200 kbps in both directions, and that connect to residential end user 
premises.
     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 the extent to 
which they provide telephone service lines by reselling another 
carriers' services (such as Centrex or special access) or facilities 
obtained under commercial arrangements. (In the current Form 477 
program, competitive LECs report their use of all types of UNEs 
together, and competitive LECs' use of resold service and facilities 
obtained under commercial arrangements must be estimated, as a 
residual, from other data they report.)
     Remove the requirement, in the current Form 477 program, 
that LECs must estimate the types of customers unaffiliated carriers 
serve by means of the services and facilities the LEC provides under 
``Total Service Resale'' arrangements, other resale arrangements, or as 
unbundled network elements (UNEs).
     Remove the requirement, in the current Form 477 program, 
that LECs must report the extent to which they use local loop 
facilities that they own and UNE loops that they obtain from another 
carrier to provision the services they provide to unaffiliated carriers 
for resale.
     Remove the requirement, in the current Form 477 program, 
that LECs must report information related to their ``collocation'' 
arrangements with unaffiliated carriers.
     Require LECs report the extent to which they are also the 
end user's default interstate long distance carrier.

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

    34. 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.
    35. We have had the benefit of four year's experience since the 
adoption of the original Form 477 reporting program. Accordingly, in 
the Notice, we sought comment on ways that the Commission might improve 
this data gathering effort. The Notice asked 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 asked for 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 or 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 residential 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

[[Page 77922]]

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.
    36. The Notice asked 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 requested that parties 
identify with specificity any associated burdens. The Notice similarly 
asked 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 stated the Commission's desire and 
intention to work closely with service providers, including small 
entities, to minimize burdens wherever possible, particularly for 
smaller providers that may have limited resources.
    37. In the Order, we take several significant steps to minimize the 
burdens of reporting broadband information on small entities. First, we 
simplify the new Form 477 from the one proposed in the Notice. We 
expect that this simplification will reduce the time and administrative 
burden to all carriers, including small entities. Next, we eliminate 
the proposed requirements for carriers to report the number of 
broadband connections, by technology, in particular Zip Codes, or to 
report, for each Zip Code, any information about the number of 
connections provided in various ``speed tiers.''
    38. In this Order, we also take several significant steps to 
minimize the burdens of reporting local telephone service data. We do 
this by eliminating several reporting requirements of the original Form 
477. In the new and simplified Form 477, LECs are no longer required to 
report information about how they provision the wholesale local 
telephone service connections that they report they provide to 
unaffiliated carriers. Also, we no longer require LECs to report 
information about how they provision unbundled network elements (UNEs) 
that they report they provide to unaffiliated carriers. We will also no 
longer require LECs to report information about special access circuits 
that they provide. To the extent that carriers (e.g., competitive LECs) 
obtain special access circuits, or private line circuits, from 
unaffiliated LECs and use them to provision switched access lines to 
their own end-user customers, however, they will continue to include, 
in their own Form 477 filings, the switched access lines that they 
provision in this manner.
    39. To further simplify the filing process and reduce the 
administrative burdens on all carriers, we will no longer require 
filers to provide a separate, redacted file when the filer requests 
confidential treatment of reported data. The new and simplified Form 
477 promulgated by this Order will continue to enable filers to request 
confidential treatment of their data by using a drop-down box located 
on the first page of the Form 477 to indicate that claim. Then, if the 
Commission receives a request for, or proposes the disclosure of, 
information reported on that particular Form 477, the filer will be 
notified and afforded the opportunity to make the necessary showing 
that the data should not be disclosed. We will continue the current 
practice of releasing only aggregated broadband information in our 
published reports to protect against release of filer-specific 
information directly or indirectly, as might occur, for example, if 
published aggregates could be compared to redacted files.

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

    40. The FCC Form 477 promulgated in this Order 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 
high-speed connections to end users in a particular state, and the 
requirement to report cable-telephony lines applies when the holding 
company provides local telephone service lines in a particular state. 
Form 325 collects information based on operations as of a typical day 
in the last full week of June. Form 477 collects data as of June 30 and 
December 31. In the new Form 477 promulgated by this Order, facilities-
based providers 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 
pursuant to section 706 of the Telecommunications Act of 1996, 47 
U.S.C. 157nt, this ORDER, with all attachments, is hereby adopted.
    The rules in this document contain information collection 
requirements that have not been approved by OMB. The Federal 
Communications Commission will publish a document in the Federal 
Register announcing the effective date.
    It is further ordered that providers subject to the requirements 
and regulation established in this Order shall complete and file the 
amended Local Telephone Competition and Broadband Reporting Form (FCC 
Form 477) no later than September 1, 2005, and semiannually thereafter.
    It is further ordered that the Commission's Consumer Information 
Bureau, Reference Information Center, shall send a copy of the Local 
Telephone Competition and Broadband Reporting ORDER, including the 
Final Regulatory Flexibility Analysis, to the Chief Counsel for 
Advocacy of the Small Business Administration.

FCC Form 477 and Instructions

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[[Page 77930]]

FCC Form 477, Instructions for September 1, 2005 Filing (of data as of 
6/30/05)
    OMB No: 3060-0816; Expiration Date: xx/xx/xxxx.
    Estimated Average Burden Hours Per Response: 10 Hours.

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

I. Purpose

    FCC Form 477 collects information about broadband connections to 
end user locations, and about wired and wireless local telephone 
services, in individual states. The term ``state'' includes the 
District of Columbia and the ``Territories and possessions'' (see 47 
U.S.C. 153(40)). Data obtained from this form will be used to describe 
the deployment of broadband infrastructure and competition to provide 
local telecommunications services. See Local Telephone Competition and 
Broadband Reporting, Report and Order, FCC 04-266 (rel. Nov. 12, 2004) 
for additional information about this data collection.

II. Who Must File This Form?

    Three types of entities must file this form. For purposes of this 
information collection, the term ``entity'' (and synonyms used in these 
instructions) includes all commonly-controlled or commonly-owned 
affiliates. (See 47 U.S.C. 153(1) (establishing a 10 percent equity 
interest, or the equivalent thereof, as indicia of ownership.))
     Facilities-based Providers of Broadband Connections to End 
User Locations: Entities that are facilities-based providers of 
broadband connections--which, for purposes of this information 
collection, are wired ``lines'' or wireless ``channels'' that enable 
the end user to receive information from and/or send information to the 
Internet at information transfer rates exceeding 200 kilobits per 
second (kbps) in at least one direction--must complete and file the 
applicable portions of this form for each state in which the entity 
provides one or more such connections to end user locations. For the 
purposes of Form 477, an entity is a ``facilities-based'' provider of 
broadband connections to end user locations if it owns the portion of 
the physical facility that terminates at the end user location, if it 
obtains unbundled network elements (UNEs), special access lines, or 
other leased facilities that terminate at the end user location and 
provisions/equips them as broadband, or if it provisions/equips a 
broadband wireless channel to the end user location over licensed or 
unlicensed spectrum. Such entities include incumbent and competitive 
local exchange carriers (LECs), cable system operators, fixed wireless 
service providers (including ``wireless ISPs''), terrestrial and 
satellite mobile wireless service providers, MMDS providers, electric 
utilities, municipalities, and other entities. (Such entities do not 
include equipment suppliers unless the equipment supplier uses the 
equipment to provision a broadband connection that it offers to the 
public for sale. Such entities also do not include providers of fixed 
wireless services (e.g., ``Wi-Fi'' and other wireless ethernet, or 
wireless local area network, applications) that only enable local 
distribution and sharing of a premises broadband facility.) For such 
entities, the applicable portions of the form are: (1) The Cover Page; 
(2) Part I; (3) Part IV (if necessary); and (4) The relevant portion(s) 
of Part V.
     Providers of Wired or Fixed Wireless Local Telephone 
Services: Incumbent and competitive LECs must complete and file the 
applicable portions of the form for each state in which they provide 
local exchange service to one or more end user customers (which may 
include ``dial-up'' ISPs). For such entities, the applicable portions 
of the form are: (1) The Cover Page; (2) Part II; (3) Part IV (if 
necessary); and (4) Column (j) of 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 one or more mobile telephony subscribers. A mobile 
telephony service is a 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. A mobile telephony 
service provider is considered ``facilities-based'' if it serves a 
subscriber using spectrum for which the entity holds a license, that it 
manages, or for which it has obtained the right to use via lease or 
other arrangement with a Band Manager. For such entities, the 
applicable portions of this form. The applicable portions of the form 
are: (1) The Cover Page; (2) Part III; and (3) Part IV (if necessary).

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 Must Complete 
the Cover Page)

    Line 1: Provide the name of the company or operations whose data 
are reported in this form. (If the filer has a holding company or other 
controlling entity with a different name, that controlling entity's 
name must be reported in Line 3 of the Cover Page.)
    Line 2: Use the drop-down box to indicate whether the data in this 
form are for incumbent LEC (ILEC) operations or for non-ILEC 
operations. (Data for affiliated operations in a single state may be 
combined in a single form, except that filers may not combine data for 
ILEC operations with data for non-ILEC operations.)
    Line 3: Use the drop-down box to select the single name, such as a 
holding company name, that identifies all commonly-owned or commonly-
controlled entities that are filing Form 477. (If the appropriate name 
is not included in the provided list, enter the appropriate name in the 
space provided. If you have no holding company or other controlling 
entity, enter in Line 3 the same name as you entered in Line 1 of the 
Cover Page.)
    Line 4: Use the drop-down box to select the state for which data 
are reported in this form. (You may not combine, in a single form, data 
for operations in more than one state. For example, the only data that 
may be reported in a ``headquarters state'' form are data for 
operations within that specific state.)
    Line 5: Provide a contact name for the person who prepared this 
filing.
    Line 6: Provide the telephone number and e-mail address for the 
contact person listed in Line 5 of the Cover Page.
    Line 7: Use the drop-down box in Line 7 to indicate whether this 
filing is an original or a revised filing. (You must file a revised 
form if you discover mistakes as specified in Section IV.D. of these 
instructions.)
    Line 8: Use the drop-down box to indicate whether you request non-
disclosure of information reported in this form. You may request non-
disclosure if you believe some or all of the information reported in 
this form is privileged and confidential and that public disclosure of 
such information would likely cause substantial harm to the competitive 
position of the filer.

[[Page 77931]]

B. Part I.A: Broadband

    Include in Part I.A: In Part I.A., facilities-based providers of 
broadband connections to end user locations report information about 
those connections. See page 1 of these instructions for definitions of 
facilities-based provider and broadband connection. 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 
broadband connections reported in Part I.A. may be billed by the filer 
(including affiliates), by an agent of the filer, or by an unaffiliated 
entity. In categorizing lines as ``broadband,'' filers should consider 
the end user's authorized maximum information transfer rate (speed) on 
that connection. Do not convert into voice-grade equivalent measures 
any connections reported in Part I.A.
    Exclude in Part I.A: Exclude subscribership connections for cable 
television service and other multi-channel video programming service; 
video-on-demand type service unless it is bundled with Internet-type 
access or uses Internet-type delivery protocols; and services that do 
connect to the Internet but restrict the end user to both transmitting 
data to the Internet and receiving data from the Internet at 
information transfer rates (speeds) of 200 kbps or less. Exclude 
connections between two locations of the same business or other end 
user entity (such as point-to-point connections within private or semi-
private data networks or corporate telephone systems). Exclude high-
capacity connections between network components within the public 
switched telephone network or the Internet (note that such connections 
do not terminate at an end user location). Exclude in Part I.A. high-
capacity dedicated connections (special access circuits) between end 
users and interexchange (telephone) carrier points of presence.
Lines in Part I.A
    Report broadband connections to end user locations on Lines A.I-1 
through A.I-10 based on the technology employed by the part of the 
connection that actually connects to the end user location. If 
different technologies are used in the two directions of information 
transfer (downstream and upstream), report the connection in the 
technology category for the higher-rate direction. Count only 
connections that are in service, including connections over which you 
(including affiliates or agents) provide an Internet-access service to 
the end user and connections 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 connections provided 
over asymmetric xDSL technologies. Do not convert these connections 
into a voice-grade equivalent measure.
    Line A.I-2: Report the number of broadband connections provided 
over symmetric xDSL technologies. Do not convert these connections into 
a voice-grade equivalent measure.
    Line A.I-3: Report the number of broadband connections provided 
over traditional wireline facilities, such as T-carrier. Do not include 
broadband connections provided over symmetric xDSL service, but report 
such connections in Line A.I-2. Do not convert these connections into a 
voice-grade equivalent measure.
    Line A.I-4: Report the number of cable modem connections. Do not 
convert these connections into a voice-grade equivalent measure.
    Line A.I-5: Report the number of broadband connections provided 
over optical carrier terminations at the end-user premises. (Note that 
broadband connections that are provisioned over optical fiber 
facilities used elsewhere in the network should not be reported in this 
category. For example, connections 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 connections into a voice-
grade equivalent measure.
    Line A.I-6: Report the number of broadband connections provided 
over satellite facilities. Do not convert these connections into a 
voice-grade equivalent measure.
    Line A.I-7: Report the number of broadband connections provided 
over terrestrial fixed wireless facilities (whether provisioned/
equipped over licensed spectrum or over spectrum used on an unlicensed 
basis). Do not convert these connections into a voice-grade equivalent 
measure. (Do not report those fixed wireless services (e.g., ``Wi-Fi'' 
and other wireless ethernet, or wireless local area network, 
applications) that only enable local distribution and sharing of a 
premises broadband facility.)
    Line A.I-8: Report the number of subscribers to broadband services 
provided over terrestrial mobile wireless facilities (whether 
provisioned/equipped over licensed spectrum or over spectrum used on an 
unlicensed basis). Terrestrial wireless broadband providers should 
report the number of end users whose mobile devices, such as wireless 
modem laptop cards, smartphones, or handsets, are capable of sending or 
receiving data at speeds in excess of 200 kbps and whose billing 
addresses are within the areas of terrestrial mobile wireless broadband 
availability as reported in Part V.
    Line A.I-9: Report the number of broadband connections provided 
over electric power lines. Do not convert these connections into a 
voice-grade equivalent measure.
    Line A.I-10: Report the number of broadband connections provided 
over all other technologies. Do not convert these connections into a 
voice-grade equivalent measure. Note that the filer must identify each 
specific technology used to provide the connections reported in Line 
A.I-10, and the corresponding number of connections for each specific 
technology, in the comment section of Part IV of the form.
Columns in Part I.A
    General Note about Reporting Percentage Breakouts: Parts I, II, and 
III of Form 477 direct filers to provide percentage breakouts for 
specific counts of connections. 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 end users, then billing 
information may be used to estimate the percentage of connections 
provided to such end users. In the absence of such 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 connections as 
described in each of Lines A.I-1 through A.I-10, above.
    Column (b): Report the percentage of total connections reported in 
column (a) that are residential connections in the

[[Page 77932]]

sense that these connections are used to deliver Internet-access 
services that are primarily purchased by, designed for, and/or marketed 
to residential end users. (Such Internet-access services may differ in 
price, ``speed tier,'' and other features from Internet-access services 
that are primarily purchased by, designed for, and/or marketed to non-
residential end users.)
    Column (c): Report the percentage of total connections reported in 
column (a) that are provided over your own local loop facilities, or 
the wireless last-mile equivalent. Your own such facilities include 
wired local loop facilities that you (including affiliates) owned, 
wireless connections to end user locations that you (including 
affiliates) have provisioned/equipped over spectrum that you use on an 
unlicensed basis or over 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 connections to end users 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 connections reported in 
column (a) that are billed (or incorporated in a service billed) to end 
users by the filer (including affiliates) or its 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 connections that 
carry information, at the end user location, at information transfer 
rates exceeding 200 kbps in both directions. In categorizing broadband 
connections in this manner, filers should consider the end user's 
authorized maximum information transfer rate (speed) on that 
connection.
    Column (e): Report the percentage of total connections 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 residential connections in the sense that they are used to 
deliver Internet-access services that are primarily purchased by, 
designed for, and/or marketed to residential end users. (As noted in 
the instructions for column (b), above, such Internet-access services 
may differ in price, ``speed tier,'' and other features from Internet-
access services that are primarily purchased by, designed for, and/or 
marketed to non-residential end users.)
    Column (f): Report the percentage of total connections 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 connections 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 connections 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 connections 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 connections 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 (continued)

    Incumbent LECs that report xDSL (asymmetric or symmetric) 
connections in Part I.A (or whose affiliates report such connections) 
must complete Line B.I-11. Cable system operators that report cable 
modem connections (or whose affiliates report such connections) in Part 
I.A. must complete Line B.I-12.
    Line B.I-11: Of those residential end user premises in this state 
to which you (including affiliates) can deliver telephone service over 
local loop facilities that you own (or over the fixed wireless last-
mile equivalent), report your best estimate of the percentage of 
premises to which broadband (asymmetric or symmetric) xDSL service is 
also available from you (or your affiliate, or an agent of you or your 
affiliate) over those facilities.
    Line B.I-12: Of those residential end user premises in this state 
to which you (including affiliates) can offer cable television service 
over cable plant that you own, report the best estimate of the 
percentage of premises to which broadband cable modem service also is 
available from you (or your affiliate, or an agent of you or your 
affiliate) over that plant.
    Residential 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. For the purposes of this data 
collection, residential end user premises also include other end user 
locations to which you (including your affiliates and agents) market 
broadband services that are primarily designed for residential use.
    Guidance on generating a ``best estimate': Rather than setting out 
detailed methodologies to which filers must adhere in reporting 
information in Part I.B., we intend to rely on current ``best 
practices'' in the local exchange and cable television industries to 
provide us with carefully considered estimates. Filers should note the 
following points. (1) The reported estimate of xDSL or cable modem 
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 xDSL or cable modem service. (2) 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 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 Telephone

    Include in Part II: Report lines or wireless channels (hereafter, 
``lines'') that you (including affiliates) use to provide voice 
telephone service in this state. For purposes of this data collection, 
``voice telephone service'' means 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

[[Page 77933]]

used for facsimile equipment or lines used occasionally or exclusively 
for ``dial-up'' connection to the Internet). See ``Note for reporting 
channelized service,'' below.
    Exclude in Part II: Do not report in Part II lines not yet in 
service, lines used for interoffice trunking, company official lines, 
lines used for special access service, or lines that were reported in 
Part I of this form. Do not report in Part II any lines that connect 
two locations of the same end user customer, ISP, or communications 
carrier. Where you are already reporting the portion of a circuit 
between the end user and your switching center, do not separately count 
the portion of that circuit between your switching center and a circuit 
switched, Internet protocol, or ATM network, irrespective of whether 
you multiplexed the circuit onto a higher-capacity facility between 
your switching center and that network. Note for reporting channelized 
service: In Part II.A and Part II.B, providers must 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. Count fully-
channelized PRI circuits (including PRIs that are used exclusively to 
provide local connectivity to ``dial-up'' ISPs) as 23 voice-grade 
equivalent lines. But report, for example, 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, however, report 24 voice-grade equivalent 
lines. In Part II.C, however, any high-capacity UNEs should not be 
reported in voice-grade equivalents. UNEs should be reported as actual 
circuit counts. Note for competitive LECs providing local exchange 
service over hybrid fiber-coaxial cable systems: If you cannot 
determine the number of lines from your records, you may report the 
number of subscribers.
Lines in Part II
    In Line A.II-1 (service provided to end users) and Lines B.II-2 
through B.II-3 (service provided to unaffiliated carriers for resale), 
report voice-grade equivalent lines used to provide voice telephone 
service. See ``Note for reporting channelized service,'' above.
    Line A.II-1: Report total voice-grade equivalent lines that you 
(including affiliates and agents) provided--that is, billed--directly 
to end users. 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. (For example, a ``dial-up'' ISP may purchase channelized PRI 
circuits so that its customers can reach it via a local telephone 
call.)
    Line B.II-2: Report total voice-grade equivalent local telephone 
service lines that 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 local telephone 
service lines that you provided to unaffiliated telecommunications 
carriers under other arrangements, such as Centrex/Centron or special 
access service, that provide the unaffiliated carrier with a connection 
to the end user premises and enable the unaffiliated carrier to provide 
local telephone service to the end user.
    In Lines C.II-4 and C.II-5, report counts of circuits. Do not 
convert circuits to voice-grade equivalent measures.
    Line C.II-4: Report the number of circuits you provided to 
unaffiliated telecommunications carriers under an unbundled network 
element (UNE) loop arrangement, where you do not provide switching for 
that circuit. Do not convert any high capacity circuits provided under 
such UNE arrangements into voice-grade equivalent measures.
    Line C.II-5: Report the number of circuits you provided to 
unaffiliated telecommunications carriers under a UNE loop arrangement, 
where you also provide switching for that circuit (i.e., ``UNE-
Platform''). Do not convert any high-capacity circuits provided under 
such UNE arrangements into voice-grade equivalent measures.
Columns in Part II
    Column (a): For Lines A.II-1 through B.II-3, report voice-grade 
equivalent lines used to provide voice telephone service, as defined 
above. For Lines C.II-4 and C.II-5, report the number of circuits 
(i.e., not the voice-grade equivalent of those circuits).
    Columns (b)-(j): Complete columns (b)-(j) for Line A.II-1. See also 
``General note about reporting percentage breakouts,'' above.
    Column (b): Report the percentage of the lines reported in column 
(a) that are used for residential service. Include lines provided to 
shared-tenant service providers in apartment buildings and similar 
residential settings. ILEC filers may report based on the percentage of 
lines reported in column (a) that are tariffed residential lines, with 
an appropriate adjustment for lines provided under shared-tenant 
service arrangements. Carriers that do not have separate residential 
tariffs or price lists should use marketing or other information about 
the demographic characteristics of the areas they serve to develop a 
comparable estimate, or should undertake a limited special study.
    Column (c): Report the percentage of the lines reported in column 
(a) for which you (including affiliates) are the default 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 (d): Report the percentage of the lines reported in column 
(a) that are used for residential service (as specified in the 
instructions for column (b), above) and for which you (including 
affiliates) are the default interstate long distance carrier (as 
specified in the instructions for column (c), above).
    Column (e): Report the percentage of the lines reported in column 
(a) that are provided over your own local loop facilities connecting to 
the end user's premises. Count as your own such facilities, those wired 
local loop facilities you (including affiliates) own, those facilities 
you obtain the right to use from unaffiliated entities as dark fiber or 
satellite transponder capacity (and that you use as part of your own 
system), those fixed-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, or those fixed-wireless connections that are deployed over 
spectrum that you use on an unlicensed basis. Do not include, in column 
(c), lines provided over UNE loops, special access lines, or other 
leased lines 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.

[[Page 77934]]

    Column (f): Report the percentage of lines reported in column (a) 
that are provided over UNE loops that you 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) that you obtained from an 
unaffiliated carrier.
    Column (h): Report the percentage of lines reported in column (a) 
that are provided by reselling a telecommunications service (such as 
Centrex/Centron or special access) that you obtained from an 
unaffiliated carrier, or by using facilities that you obtained from an 
unaffiliated carrier under a commercial arrangement.
    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

    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.

F. Part IV: Explanations and Comments

    Filers that must report: If there is a non-zero entry in column (a) 
of Line A.I-10 of Part I of a form, 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 of the form.
    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

    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.A, or at least one of the 
voice-grade telephone service lines provided to end users reported in 
Part II, Line II.A-1. Do not report line counts or subscriber counts by 
Zip Code.)
    Column (a)-(i): 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 at least one of the 
broadband connections reported in Part I is in service--except that the 
Zip Codes reported in column (g) should be the Zip Codes in the state 
in which the mobile wireless broadband service provider's service is 
advertised and available to actual and potential subscribers.
    Column (j): If you file local telephone service information in Part 
II, Line II.A-1, you must provide a list of Zip Codes in the state in 
which you have end user customers for your voice telephone service. 
(See the definition of ``voice telephone service,'' above.) Providers 
of mobile telephony services that report data in Part III should not 
report this Zip Code information.

    Note: Zip Code lists reported in a form should be reviewed prior 
to filing to eliminate any out-of-state Zip Codes (such as may 
appear in Zip Code lists generated directly from billing databases).


IV. General Information

A. Where and When to File

1. When to File
     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 (6/30/05 data), name of filer, 
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 irradiation can damage compact discs and floppy 
diskettes, filers are encouraged to submit Form 477 using one of the 
following three alternatives--preferably e-mail. (Use only one filing 
method; do not make duplicate filings. A filer who is unable to use one 
of the following delivery methods should contact the Industry Analysis 
and Technology Division, Wireline Competition Bureau, at (202) 418-0940 
or via TTY at (202) 417-0484.)
    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 may use a zip utility to compress 
them. The subject field of the e-mail should contain the

[[Page 77935]]

phrase: FCC Form 477 due 9/1/05. If multiple e-mails must be sent, the 
subject line should so indicate; for example: FCC Form 477 due 9/1/05 
(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).

    Note: Because the specific requirements for overnight, hand, or 
messenger delivery may change, you may want to consult the Office of 
the Secretary (www.fcc.gov/osec) for the most current information.

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 
www.fcc.gov/formpage.html or by purchase from the FCC's duplicating 
contractor, Best Copy and Printing, Inc. at (202) 488-5300, facsimile 
(202) 488-5563, or through www.bcpiweb.com. Form 477 will be updated 
for each filing round, 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 Excel 2002 
format. It contains drop-down boxes and some edit checks. Once you 
complete a filing, name the file in accordance with instructions 
provided below.

    Note: 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. 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: 
SSTHyearname.xls, where:
    SS is the two letter post office abbreviation for the state.
    T is a single character that indicates whether the file contains 
incumbent LEC (ILEC) data or non-ILEC data (which must be filed 
separately) and whether the file contains revised data. Select the 
appropriate code from the following list:

    A = original filing for non-ILEC operations
    B = original filing for ILEC operations
    C = revised filing for non-ILEC operations
    D = revised 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 September 1, 2005, reported data will be as 
of June 30, 2005, so 2005 = 05).
    name is the company name identified on Line 1 of the Cover Page of 
Form 477.
    Example: NCB1J05BellSouth.xls
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

    Filers may submit a request that information on Form 477 not be 
made routinely available for public inspection by so indicating on Line 
8 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).

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 re-filed. For percentages, a 
difference of 5 percentage points is significant and must be re-filed. 
Revisions should consist of a certification statement and one or more 
electronic files. Carriers should re-file all data for a state if one 
or more data element must be revised. A re-filed 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 of these instructions.

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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[[Page 77937]]

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 connections: Lines (or wireless channels) that terminate 
at an end user location and enable the end user to receive information 
from and/or send information to the Internet 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 Part I of Form 477, an 
Internet Service Provider (ISP) is not an ``end user'' of a broadband 
connection.
    Facilities-based broadband provider: A provider of broadband 
connections to end user locations that owns the portion of the physical 
facility that terminates at the end user location, obtains unbundled 
network elements (UNEs), special access lines, or other leased 
facilities that terminate at end user locations and provisions/equips 
them as broadband, or provisions/equips broadband wireless channels to 
end user location over licensed spectrum or over spectrum that the 
provider uses on an unlicensed basis.
    Local loop: For purposes of this data collection, the ``last mile'' 
facilities (either wired facilities or the wireless equivalent) 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.
    Own local loop facilities: Those wired local loop facilities that 
the filer (including affiliates) actually owns as well as facilities 
that the filer obtains the right to use from unaffiliated entities as 
dark fiber or satellite transponder capacity (and that the filer uses 
as part of its own system). Also, for purposes of Part I of Form 477, 
broadband wireless connections to end user locations that the filer 
provisions/equips as broadband over licensed spectrum or over spectrum 
that the filer uses on an unlicensed basis. For the purposes of Part I 
of Form 477, this term does not include unbundled network elements 
(UNEs), special access lines, or other leased lines that the filer 
obtains from an unaffiliated entity and equips as broadband.
    Residential broadband connection: For the purposes of Part I of 
Form 477, broadband connections of a type (as indicated by, e.g., 
price, ``speed,'' or other features) that is primarily purchased by, 
designed for, and/or marketed to residential end users.
    Residential 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 other end user locations 
to which you (including affiliates and agents) market broadband 
services that are primarily designed for residential use.

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 wired local loop facilities that 
the filer (including affiliates) actually owns as well as facilities 
that the filer obtains the right to use from unaffiliated entities as 
dark fiber or satellite transponder capacity (and that the filer uses 
as part of its own system). Also, for purposes of Part II of Form 477, 
fixed wireless voice-grade channels to end user locations that the 
filer provisions/equips over licensed spectrum or over spectrum that 
the filer uses on an unlicensed basis. For the purposes of Part II of 
Form 477, the term does not include voice-grade channels to end user 
premises that the filer provisions over UNE loops, special access 
lines, or other leased lines that the filer obtains from an 
unaffiliated carrier.
    Residential lines: Lines provided to residential end user premises. 
Also includes any lines the filer provides to a shared-tenant service 
provider in an apartment building or similar residential setting.
    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 connected to facsimile 
equipment or lines used occasionally or exclusively for ``dial-up'' 
connection to the Internet).

Part III: Mobile Local Telephone

    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. No. 104-13, 44 U.S.C. 3501, et 
seq.
    Our legal right to ask for this information is Sec.  1.7000-1.7002, 
20.15, 43.01, 43.11 of the 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

[[Page 77938]]

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, 10 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 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 Form 477 in a timely fashion may 
be subject to penalties under the Communications Act, including 
sections 502 and 503(b).

List of Subjects in 47 CFR Parts 1, 20 and 43

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

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Rule Changes

0
For the reasons discussed in the preamble, the Federal Communications 
Commission amends 47 CFR Parts 1, 20, and 43 as follows:

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 is revised to read as follows:

    Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j), 
155, 157, 225, and 303(r).


0
2. Section 1.7001 is amended by revising paragraph (b) to read as 
follows:


Sec.  1.7001  Scope and content of filed reports.

* * * * *
    (b) All commercial and government-controlled entities, including 
but not limited to common carriers and their affiliates (as defined in 
47 U.S.C. 153 (1)), cable television companies, Multichannel Multipoint 
Distribution Service (MMDS/MDS) ``wireless cable'' carriers, other 
fixed wireless providers, terrestrial and satellite mobile wireless 
providers, utilities and others, which are facilities-based providers, 
shall file with the Commission a completed FCC Form 477, in accordance 
with the Commission's rules and the instructions to the FCC Form 477, 
for each state in which they provide service.
* * * * *

PART 20--COMMERCIAL MOBILE RADIO SERVICES

0
3. The authority citation for part 20 is revised to read as follows:

    Authority: 47 U.S.C. 154, 157, 160, 251-254, 303, and 332 unless 
otherwise noted.


0
4. Section 20.15 is amended by revising paragraph (b)(1) to read as 
follows:


Sec.  20.15  Requirements under Title II of the Communications Act.

* * * * *
    (b) * * *
    (1) File with the Commission copies of contracts entered into with 
other carriers or comply with other reporting requirements, or with 
Sec. Sec.  1.781 through 1.814 and 43.21 of this chapter; except that 
commercial radio service providers that offer broadband service, as 
described in Sec.  1.7001(a) of this chapter or mobile telephony are 
required to file reports pursuant to Sec. Sec.  1.7000 and 43.11 of 
this chapter. For purposes of this section, mobile telephony is defined 
as real-time, two-way switched voice service that is interconnected 
with the public switched network utilizing an in-network switching 
facility that enables the provider to reuse frequencies and accomplish 
seamless handoff of subscriber calls.
* * * * *

PART 43--REPORTS OF COMMUNICATION COMMON CARRIERS AND CERTAIN 
AFFILIATES

0
5. The authority citation for part 43 continues to read as follows:

    Authority: 47 U.S.C. 154; Telecommunications Act of 1996, Pub. 
L. 104-104, secs. 402(b)(2)(B), (c), 110 Stat. 56 (1996) as amended 
unless otherwise noted. 47 U.S.C. 211, 219, 220 as amended.


0
6. Section 43.11 is amended by revising paragraph (a) to read as 
follows:


Sec.  43.11  Reports of local exchange competition data.

    (a) All common carriers and their affiliates (as defined in 47 
U.S.C. 153 (1)) providing telephone exchange or exchange access service 
(as defined in 47 U.S.C. 153 (16) and (47)) or commercial mobile radio 
service (CMRS) providers offering mobile telephony (as defined in Sec.  
20.15(b)(1) of this chapter) shall file with the Commission a completed 
FCC Form 477, in accordance with the Commission's rules and the 
instructions to the FCC Form 477, for each state in which they provide 
service.
* * * * *
[FR Doc. 04-28415 Filed 12-28-04; 8:45 am]
BILLING CODE 6712-01-P