[Federal Register Volume 70, Number 70 (Wednesday, April 13, 2005)]
[Rules and Regulations]
[Pages 19321-19330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-7179]


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

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 52

[CC Docket No. 92-105; FCC 05-59]


The Use of N11 Codes and Other Abbreviated Dialing Arrangements

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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

SUMMARY: In this document, the Commission designates 811 as the 
national abbreviated dialing code to be used by state One Call 
notification systems for providing advanced notice of excavation 
activities to underground facility operators in compliance with the 
Pipeline Safety Improvement Act of 2002 (the Pipeline Safety Act). This 
Order implements the Pipeline Safety Act, which provides for the 
establishment of a nationwide toll-free abbreviated dialing arrangement 
to be used by state One Call notification systems.

DATES: Effective May 13, 2005.

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

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Sixth 
Report and Order, in CC Docket No. 92-105, FCC 05-59, released March 
14, 2005. The full text of this document is available for public 
inspection during regular business hours in the FCC Reference Center, 
Room CY-A257, 445 12th Street, SW., Washington, DC 20554.

I. Introduction

    1. In this Sixth Report and Order (6th R&O), released on March 14, 
2005, we designate 811 as the national abbreviated dialing code to be 
used by state One Call notification systems for providing advanced 
notice of excavation activities to underground facility operators in 
compliance with the Pipeline Safety Act. This Order implements the 
Pipeline Safety Act, which provides for the establishment of a 
nationwide toll-free abbreviated dialing arrangement to be used by 
state One Call notification systems. A One Call notification system is 
a communication system established by operators of underground 
facilities and/or state governments in order to provide a means for 
excavators and the general public to notify facility operators in 
advance of their intent to engage in excavation activities. We also 
address various implementation issues in this Order. Specifically, we:
     Require One Call Centers to notify carriers of the toll-
free or local number the One Call Center uses in order to ensure that 
callers do not incur toll charges, as mandated by the statute;
     Allow carriers to use either the Numbering Plan Area 
(NPA)-NXX or the originating switch to determine the appropriate One 
Call Center to which a call should be routed;
     Require the use of 811 as the national abbreviated dialing 
code for providing advanced notice of excavation activities to 
underground facility operators within two years after publication of 
this Order in the Federal Register; and
     Delegate authority to the states, pursuant to section 
251(e), to address the technical and operational issues associated with 
the implementation of the 811 code.
    2. The 811 abbreviated dialing code shall be deployed ubiquitously 
by carriers throughout the United States for use by all 
telecommunications carriers, including wireline, wireless, and payphone 
service providers that provide access to state One Call Centers. This 
designation shall be effective May 13, 2005.

II. Discussion

A. Abbreviated Dialing Arrangements

    1. Designation of 811 as a National Abbreviated Dialing Code
    3. Background. In the Notice of Proposed Rulemaking, (NPRM), 69 FR 
31930, June 8, 2004, we sought comment on whether to use an N11 code 
for access to One Call Centers. Specifically, we sought comment on the 
North American Numbering Council's (NANC) recommendation to assign 811 
for this purpose. We also asked commenters to address whether we should 
incorporate the One Call access service into an existing N11 code, such 
as 311 or 511, to preserve the remaining unassigned N11 codes. The NANC 
expressed concern that shared use could cause caller confusion, 
misrouted calls, and deployment delay. We requested commenters that 
advocated shared use of an existing N11 code to propose solutions to 
mitigate the concerns expressed by the NANC.
    4. Discussion. In this Order, we conclude that an N11 code is the 
best solution, within the framework of the statute, for access to One 
Call Centers. Thus, consistent with the statutory mandate, we designate 
811 as the national abbreviated dialing code to be used by state One 
Call notification systems for providing advanced notice of excavation 
activities to underground facility operators in compliance with the 
Pipeline Safety Improvement Act. In so doing, we reject the other 
options considered by the NANC and posed in the NPRM. We agree with 
commenters that other alternatives--codes using a leading star or 
number sign, e.g. *344 or 344 and an Easily Recognizable Code 
(ERC), such as 344--are impractical, costly to implement, and could 
delay the availability of a national One Call number for years. 
Moreover, dialing arrangements in the format of *XXX or XXX, 
in as much as these codes include three digits following the leading 
star or number sign, do not comply with the statute's requirement to 
utilize a nationwide ``three-digit number'' to access One Call Centers. 
We believe that 811 will have less impact on customer dialing patterns 
and can be implemented without the substantial cost and delay of switch 
development required with the other proposed alternatives. We also 
agree with the U.S. Department of Transportation (DOT) that the special 
nature of an N11 code makes the 811 code amenable to a public education 
campaign linking it to One Call Centers. We reject APCC's request to 
exempt payphone service providers from this requirement. In contrast to 
the Act's clear mandate of a nationwide toll-free three-digit code for 
access to One Call Centers, APCC provides no credible argument for an 
exemption. The Act does not provide any exemptions from this 
requirement, and we decline to do so here.
    5. Although we recognize that using 811 depletes the quantity of 
remaining N11 codes assignable for other purposes, using an N11 code to 
access One Call Centers will consume fewer numbering resources than 
certain other alternative abbreviated dialing arrangements. 
Additionally, the use of an N11 code to access One Call services 
follows the existing conventions for abbreviated dialing already 
familiar to customers. The N11 architecture is an established 
abbreviated dialing plan that is recognized by switch manufacturers and 
the public at large. Most significantly, using an N11 code such as 811 
satisfies the legislative mandate for a three-digit nationwide number.
    6. We share the concerns of commenters regarding the shared use of 
an existing N11 code, such as 511 (which is currently used for travel 
and

[[Page 19322]]

information services) or 311 (which is currently used for non-emergency 
police and other governmental services). In this instance, due to the 
volume of calls received by state One Call Centers, shared use of an 
existing N11 code could result in customer confusion and misrouting 
when dialing a shared N11 code. Thus, excavators could be deterred from 
using the notification system, thereby reducing the effectiveness of 
the One Call Centers. The Common Ground Alliance (CGA) estimates that 
the One Call Centers currently receive approximately 15 million calls 
annually. It also estimates that 40 percent of the incidents where 
underground facilities are damaged were caused by those who did not 
call before digging. CGA contends that the incoming call volume to One 
Call Centers over the next few years may well exceed 20 million calls. 
Thus, integration of state One Call Centers with existing N11 systems 
may also increase implementation costs while adding unnecessary 
complexity to the One Call notification program. Further, shared use of 
an existing N11 code for access to state One Call Centers could also 
delay deployment due to the need to reach agreement with the existing 
users of the N11 code to be integrated and national advertising efforts 
to educate users on the shared use of the N11 code. For these reasons, 
we reject the use of an existing N11 code as opposed to the approach 
adopted in this Order.
2. Other Abbreviated Dialing Arrangements Considered in the Notice
a. Rejection of 344 as the Abbreviated Dialing Code for One Call 
Notification
    7. Background. In the NPRM, we sought comment on DOT's initial 
proposal to establish the digits ``344'' or any other mnemonic three-
digit dialing arrangement for access to One Call Centers. We 
tentatively concluded that because 344 corresponds to an ERC, an 
abbreviated dialing code in the format of an Easily Recognizable Code 
(ERC) or other area code would be inconsistent with our numbering 
resource optimization policies by potentially rendering eight million 
North American Numbering Plan (NANP) telephone numbers unusable. We 
specifically sought comment on the technical and operational issues 
raised by the NANC and whether there are existing measures that can 
address these issues. We also sought comment as to the extent switch 
development or replacement may be needed and the impact this will have 
on nationwide implementation.
    8. Discussion. We conclude that an abbreviated dialing code in the 
format of an ERC or other area code would be inconsistent with our 
numbering resource optimization policies by rendering approximately 
eight million NANP telephone numbers unusable. We agree with commenters 
that the selection of an ERC for this purpose would not be in the 
public interest because it would accelerate NANP exhaust. Further, the 
establishment of 344 as an abbreviated dialing code may cause customer 
confusion and frustration for customers by misrouting callers to the 
One Call Center where 344 is a working NXX code. Additionally, from a 
technical perspective, some switches would require either replacement 
or development work that could delay the capability of using the 344 
code as a three-digit number for a number of years. For example, 
Verizon comments that vendor development for the affected switches 
would require new technical specifications, code preparation, 
installation, testing, and release of generic software release prior to 
distribution. In light of these technical and practical challenges, we 
do not establish 344 as the One Call abbreviated dialing code.
b. Rejection of Codes Using a Leading Star or Number Sign for One Call 
Notification
    9. Background. In the NPRM, we sought comment on whether a code 
with a leading star or number sign, in the format of either *XXX or 
XXX, should be used to access One Call Centers. We sought 
comment on the extent to which using a code with a leading star or 
number sign will either promote or discourage exhaust of the NANP 
numbers. We asked parties to discuss any existing measures that can 
mitigate or alleviate the limitations with using a leading star or 
number sign. We also sought comment on whether calls from wireless 
customers to One Call Centers should continue to be permitted because 
of the effort that has gone into wireless implementation of 
344 (DIG).
    10. Discussion. We agree with commenters that the use of a code 
with a leading star or number sign, in the format of either *XXX or 
XXX, for access to One Call Centers would be too difficult and 
costly to implement. Most significantly, as indicated above, such a 
dialing arrangement does not comply with the statute's requirement to 
utilize a nationwide ``three-digit number'' to access One Call Centers. 
Moreover, this abbreviated dialing arrangement would not achieve the 
uniformity mandated by the Pipeline Safety Act since all users would 
not be dialing the same sequence if the code selected includes a star 
or number sign. A single nationwide abbreviated dialing code for access 
to One Call Centers will provide the certainty and reliability required 
for maximum usage and benefits of One Call services. Additionally, many 
telephone systems use the star and number signs for feature access. 
Thus, reprogramming these systems may not always be feasible and will 
involve considerable customer expense. Further, some switching systems 
may not be capable of processing access codes using a leading star or 
number sign in the dialing sequences; and the necessary switch 
development would delay the full implementation of the One Call 
functionality. Based on the record before us, we conclude that *XXX and 
XXX are impractical for use as the national One Call access 
code and we will not assign a code using a leading star or number sign 
for access to One Call Centers.
    11. Although we recognize the efforts undertaken in the 
implementation of 344 by some wireless carriers, we disagree 
with those commenters who advocate the continued and indefinite use of 
344 for access to One Call Centers. We agree with DOT that a 
single nationwide abbreviated dialing code for access to One Call 
Centers will provide the certainty and reliability required for maximum 
usage and benefits of One Call services as intended by Congress. The 
344 abbreviated dialing arrangement does not comply with the 
statute's requirement to utilize a nationwide ``three-digit number'' to 
access One Call Centers and the statutory mandate that dialing be 
uniform across the nation. The use of different abbreviated dialing 
codes for access to state One Call Centers, even if such codes are made 
available in addition to 811, likely will result in customer confusion 
as the public use both wireless and wireline telephones. Wireless 
carriers that currently use 344 shall transition to 811 
pursuant to the implementation requirements.

B. Implementation Issues

1. Integration of Existing One Call Center Numbers
    12. Background. The Pipeline Safety Act expressly mandates use of a 
three-digit toll-free number to access State One Call Centers. In the 
NPRM, we sought comment on methods to ensure that calls to One Call 
Centers are toll-free. We specifically sought comment on the NANC's 
recommendation that each One Call Center provide a toll-free number, 
which can be an 8YY number or any number that is not an IntraLATA

[[Page 19323]]

toll call from the area to be served, so that callers do not incur toll 
charges. We also sought comment on whether the dialing sequence should 
be the same for all providers or whether existing abbreviated dialing 
sequences should be allowed to continue.
    13. Discussion. To ensure that calls to One Call Centers are toll-
free, we conclude that One Call Centers shall provide to carriers its 
toll-free number, which can be an 8YY number, or any number that is not 
an IntraLATA toll call, from the area to be served for use in 
implementing 811. Thus, when a caller dials 811, the carriers will 
translate 811 into the appropriate number to reach the One Call Center. 
This requirement will both simplify call routing and ensure that 
callers do not incur toll charges, as mandated by the statute. As 
discussed above, other existing abbreviated dialing sequences shall be 
discontinued, because the use of other existing abbreviated dialing 
sequences in addition to 811 does not comply with the statutory mandate 
that dialing be uniform across the nation.
2. Originating Switch Location
    14. Background. In establishing a framework for its evaluation of 
various abbreviated dialing arrangements to implement the Pipeline 
Safety Act, the NANC proposed that for wireline-originated calls, the 
originating NPA-NXX would determine the One Call Center to which the 
call is sent. For wireless-originated calls, the NANC proposed that the 
originating Mobile Switch Center would determine the One Call Center to 
which the call is sent. In the NPRM, we sought comment on these 
proposals.
    15. Discussion. We direct carriers to use either the NPA-NXX or the 
originating switch to determine the appropriate One Call Center to 
which a call should be routed. For wireline-originated calls, the 
originating switch location or the NPA-NXX will determine the One Call 
Center to which the call is sent. For wireless-originated calls, the 
originating Mobile Switch Center will determine the One Call Center to 
which the call is sent. This approach allows all carriers the 
flexibility to utilize the most efficient and cost-effective method for 
routing calls to appropriate state One Call Center and is competitively 
neutral.
3. Implementation Period
    16. Background. In the NPRM, we sought comment on several issues 
relating to how much time carriers should be given to implement a new 
national abbreviated dialing code. Specifically, we sought comment on 
how long the implementation period for each proposed abbreviated 
dialing arrangement should be. We asked parties to comment on all of 
the steps that carriers must undertake to prepare the network for use 
of the three abbreviated dialing arrangements proposed in the NPRM to 
route properly such calls to the One Call Centers. We also sought 
comment on what time limit should be given to carriers to vacate any 
existing uses, if an unassigned N11 code, such as 811, were selected to 
access One Call Centers. Further, we specifically sought comment on the 
technical and operational issues that should be considered when 
determining the time period for implementation that would allow 
carriers to prepare for use of the proposed abbreviated dialing 
arrangement that was adopted. We also sought comment on the NANC's 
recommendation that we allow carriers one to two years to prepare the 
network to support One Call notification to existing One Call Centers. 
Additionally, we sought comment on whether the period for 
implementation should be uniform or variable and based on local 
conditions and whether, pursuant to section 251(e), we should delegate 
authority to the states to establish the timeframe for implementation 
and how best to engage states in the implementation process.
    17. Discussion. With regard to how much time carriers will need to 
implement 811, we find that, based on the record before us, two years 
from publication of this Order in the Federal Register is a reasonable 
time period for implementing 811. Most commenters generally agree that 
two years is a sufficient period for implementing an N11 code, 
specifically 811, for access to One Call Centers. Thus, we conclude 
that calls to One Call Centers using an abbreviated dialing code must 
use 811 as the national abbreviated dialing code for providing advanced 
notice of excavation activities to underground facility operators on or 
before two years from publication of this Order in the Federal 
Register. We defer to the expertise of the carriers, in cooperation 
with the individual states, to develop and determine the most 
appropriate technological means of implementing 811 access to One Call 
services, as dictated by their particular network architectures.
    18. Although the Commission has allowed the local use of unassigned 
N11 codes, it has recognized that this use must be discontinued on 
short notice. The record indicates that the 811 code, while not 
formally allocated by a Commission order, is being used in several 
jurisdictions for other purposes. For example, 811 is used in some 
areas to allow customers to make free repair calls and as a 911 test 
code. Specifically, in some of its states, SBC Communications (SBC) 
uses 811 as a test code for 911 prior to ``turning up'' new 911 trunk 
groups. SBC asserts therefore that designing a new code for testing 
will take some time because SBC must be able to test new 911 trunk 
groups to ensure they operate correctly. SBC also currently uses 811 in 
Connecticut for its business offices. Thus, in certain states, 
implementing the 811 solution will require time and effort.
    19. American Public Communications Council (APCC) also notes that 
many independent payphone service providers currently use 811 to allow 
the general public to make free repair calls from payphones. APCC 
argues that it would be costly to implement 811 because it would 
require payphones to be reprogrammed and a change of signage informing 
payphone users of the new repair code. We agree with SBC that where 811 
have been used by customers for other purposes, changing the use of 
that number will require more robust customer education. Additionally, 
changes to phone books, methods and procedures, and systems will 
require significantly more time where 811 was previously used for other 
purposes. For the foregoing reasons, we believe two years provides a 
reasonable transition period to clear the 811 abbreviated dialing code 
of any other existing uses, provide customer education, and ensure that 
there is no unreasonably abrupt disruption of the existing uses.
    20. We recognize that states have unique knowledge that will assist 
in implementing the transition to the One Call Center access set forth 
in this Order. We therefore delegate authority to the state 
commissions, pursuant to section 251(e), to address the technical and 
operational issues associated with the implementation of 811. In 
delegating authority to the state commissions to address the technical 
and operational issues, state commissions should also consider whether 
a carrier may need additional time to implement 811 due to such 
technical and/or operational difficulties. We agree with Michigan 
Public Service Commission (MPSC) that state commissions are in the best 
position to address issues associated with implementing the abbreviated 
dialing arrangement because many of the One Call Centers were developed 
by, or under the auspices of, the state commissions. For example, Qwest 
suggests that states be involved in mediating issues associated with

[[Page 19324]]

customer contention in areas where multiple call centers request 
service in the same geographical area and be delegated authority to 
assess the qualifications of One Call Centers. We agree. We defer to 
the expertise of the states to address and resolve such issues. 
However, we decline to delegate authority to the state commissions, as 
suggested by California Public Utilities Commission and the People of 
the State of California (CPUC), to establish the implementation period. 
We agree with SBC that the statute calls for a nationwide solution and 
that allowing states to establish the implementation period would not 
meet this mandate. Therefore, as discussed above, we have established a 
two year period for implementing 811 as the national abbreviated 
dialing code for access to state One Call Centers.

III. Procedural Matters

A. Regulatory Flexibility Analysis

    21. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the NPRM. The Commission sought written public comment 
on the proposals in the NPRM, including comment on the IRFA. The 
Commission has prepared a Final Regulatory Flexibility Analysis (FRFA) 
for this Order, set forth at Appendix B.

B. Paperwork Reduction Act Analysis

    22. This Order does not contain new or modified information 
collection requirements subject to the Paperwork Reduction Act of 1995 
(PRA), Public Law 104-13. In addition, therefore, it does not contain 
any new or modified ``information collection burden for small 
businesses with fewer than 25 employees,'' pursuant to the Small 
Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 
U.S.C. 3506(c)(4).

C. Further Information

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

Final Regulatory Flexibility Analysis (Report and Order)

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

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

    25. In this Order, we designate 811 as the national abbreviated 
dialing code to be used by state One Call notification systems for 
providing advanced notice of excavation activities to underground 
facility operators in compliance with the Pipeline Safety Improvement 
Act of 2002 (the ``Pipeline Safety Act''). This Order implements the 
Pipeline Safety Act, which provides for the establishment of a 
nationwide toll-free abbreviated dialing arrangement to be used by 
state One Call notification systems.
    26. A One Call notification system is a communication system 
established by operators of underground facilities and/or state 
governments in order to provide a means for excavators and the general 
public to notify facility operators in advance of their intent to 
engage in excavation activities. We also address various implementation 
issues. Specifically, we require One Call Centers to notify carriers of 
the toll-free or local number the One Call Center uses in order to 
ensure that callers do not incur toll charges, as mandated by the 
statute. We also allow carriers to use either the Numbering Plan Area 
(NPA) NXX or the originating switch to determine the appropriate One 
Call Center to which a call should be routed. Further, we require the 
use of 811 as the national abbreviated dialing code for providing 
advanced notice of excavation activities to underground facility 
operators within two years after publication of this Order in the 
Federal Register. We also delegate authority to the states, pursuant to 
section 251(e), to address the technical and operational issues 
associated with the implementation of the 811 code.
    27. The 811 abbreviated dialing code shall be deployed ubiquitously 
by carriers throughout the United States for use by all 
telecommunications carriers, including wireline, wireless, and payphone 
service providers that provide access to state One Call Centers. The 
designation of 811 for access to state One Call Centers shall be 
effective thirty days after publication of this Order in the Federal 
Register.

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

    28. In the IRFA, we indicated that we would consider any proposals 
made to minimize any significant economic impact on small entities. We 
received no comments directly in response to the IRFA. However, the 
National Telecommunications Cooperative Association (NTCA) and THG 
Consultants LLP (THG) filed general comments regarding the possible 
impact of the implementation of an N11 code on small business entities. 
Specifically, NTCA asserted that, although implementing 811 as the 
abbreviated dialing code for accessing the state One Call notification 
system will not cause its member companies any technical hardships; it 
will involve some costs and difficulties due to the need to modify 
switches. While NTCA did not provide detailed information on 
implementation costs, NTCA contended that the burdens associated with 
implementation of the 811 code would have a greater impact on smaller 
companies with limited staffing and a smaller subscriber base. THG 
argued that if an unassigned N11 code is selected to access One Call 
Centers, then existing commercial uses of this code should continue for 
commercial purposes until a qualified entity applies for develops the 
capability to put the code into use for One Call access. THG is 
concerned that, where an unassigned N11 code is selected for One Call 
access, small businesses engaged in commercial activities may be 
adversely affected and the public deprived of an existing service. The 
steps taken to minimize economic impact on small entities are discussed 
below.

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

    29. 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. 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).

[[Page 19325]]

 a. Telecommunications Service Entities
(i) Wireline Carriers and Service Providers
    30. We have included small incumbent local exchange carriers in 
this present RFA analysis. As noted above, a ``small business'' under 
the RFA is one that, inter alia, meets the pertinent small business 
size standard (e.g., a telephone communications business having 1,500 
or fewer employees), and ``is not dominant in its field of operation.'' 
The SBA's Office of Advocacy contends that, for RFA purposes, small 
incumbent local exchange carriers are not dominant in their field of 
operation because any such dominance is not ``national'' in scope. We 
have therefore included small incumbent local exchange carriers in this 
RFA analysis, although we emphasize that this RFA action has no effect 
on Commission analyses and determinations in other, non-RFA contexts.
    31. Incumbent Local Exchange Carriers. Neither the Commission nor 
the SBA has developed a small business size standard specifically for 
incumbent local exchange services. The appropriate size standard under 
SBA rules is for the category Wired Telecommunications Carriers. Under 
that size standard, such a business is small if it has 1,500 or fewer 
employees. According to Commission data, 1,337 carriers have reported 
that they are engaged in the provision of incumbent local exchange 
services. Of these 1,337 carriers, an estimated 1,032 have 1,500 or 
fewer employees and 305 have more than 1,500 employees. Consequently, 
the Commission estimates that most providers of incumbent local 
exchange service are small businesses that may be affected by our 
action.
    32. Competitive Local Exchange Carriers, Competitive Access 
Providers, ``Shared-Tenant Service Providers,'' and ``Other Local 
Service Providers.'' Neither the Commission nor the SBA has developed a 
small business size standard specifically for these service providers. 
The appropriate size standard under SBA rules is for the category Wired 
Telecommunications Carriers. Under that size standard, such a business 
is small if it has 1,500 or fewer employees. According to Commission 
data, 609 carriers have reported that they are engaged in the provision 
of either competitive access provider services or competitive local 
exchange carrier services. Of these 609 carriers, an estimated 458 have 
1,500 or fewer employees and 151 have more than 1,500 employees. In 
addition, 16 carriers have reported that they are ``Shared-Tenant 
Service Providers,'' and all 16 are estimated to have 1,500 or fewer 
employees. In addition, 35 carriers have reported that they are ``Other 
Local Service Providers.'' Of the 35, an estimated 34 have 1,500 or 
fewer employees and one has more than 1,500 employees. Consequently, 
the Commission estimates that most providers of competitive local 
exchange service, competitive access providers, ``Shared-Tenant Service 
Providers,'' and ``Other Local Service Providers'' are small entities 
that may be affected by our action.
    33. Local Resellers. The SBA has developed a small business size 
standard for the category of Telecommunications Resellers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees. According to Commission data, 133 carriers have reported 
that they are engaged in the provision of local resale services. Of 
these, an estimated 127 have 1,500 or fewer employees and six have more 
than 1,500 employees. Consequently, the Commission estimates that the 
majority of local resellers are small entities that may be affected by 
our action.
    34. Toll Resellers. The SBA has developed a small business size 
standard for the category of Telecommunications Resellers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees. According to Commission data, 625 carriers have reported 
that they are engaged in the provision of toll resale services. Of 
these, an estimated 590 have 1,500 or fewer employees and 35 have more 
than 1,500 employees. Consequently, the Commission estimates that the 
majority of toll resellers are small entities that may be affected by 
our action.
    35. Payphone Service Providers. Neither the Commission nor the SBA 
has developed a small business size standard specifically for payphone 
services providers. The appropriate size standard under SBA rules is 
for the category Wired Telecommunications Carriers. Under that size 
standard, such a business is small if it has 1,500 or fewer employees. 
According to Commission data, 761 carriers have reported that they are 
engaged in the provision of payphone services. Of these, an estimated 
757 have 1,500 or fewer employees and four have more than 1,500 
employees. Consequently, the Commission estimates that the majority of 
payphone service providers are small entities that may be affected by 
our action.
    36. Interexchange Carriers. Neither the Commission nor the SBA has 
developed a small business size standard specifically for providers of 
interexchange services. The appropriate size standard under SBA rules 
is for the category Wired Telecommunications Carriers. Under that size 
standard, such a business is small if it has 1,500 or fewer employees. 
According to Commission data, 261 carriers have reported that they are 
engaged in the provision of interexchange service. Of these, an 
estimated 223 have 1,500 or fewer employees and 38 have more than 1,500 
employees. Consequently, the Commission estimates that the majority of 
IXCs are small entities that may be affected by our action.
    37. Operator Service Providers. Neither the Commission nor the SBA 
has developed a small business size standard specifically for operator 
service providers. The appropriate size standard under SBA rules is for 
the category Wired Telecommunications Carriers. Under that size 
standard, such a business is small if it has 1,500 or fewer employees. 
According to Commission data, 23 carriers have reported that they are 
engaged in the provision of operator services. Of these, an estimated 
22 have 1,500 or fewer employees and one has more than 1,500 employees. 
Consequently, the Commission estimates that the majority of OSPs are 
small entities that may be affected by our action.
    38. Prepaid Calling Card Providers. Neither the Commission nor the 
SBA has developed a small business size standard specifically for 
prepaid calling card providers. The appropriate size standard under SBA 
rules is for the category Telecommunications Resellers. Under that size 
standard, such a business is small if it has 1,500 or fewer employees. 
According to Commission data, 37 carriers have reported that they are 
engaged in the provision of prepaid calling cards. Of these, an 
estimated 36 have 1,500 or fewer employees and one has more than 1,500 
employees. Consequently, the Commission estimates that the majority of 
prepaid calling card providers are small entities that may be affected 
by our action.
(ii) Wireless Telecommunications Service Providers
    39. Wireless Service Providers. The SBA has developed a small 
business size standard for wireless firms within the two broad economic 
census categories of ``Paging'' and ``Cellular and Other Wireless 
Telecommunications.'' Under both SBA categories, a wireless business is 
small if it has 1,500 or fewer employees. For the census category of 
Paging, Census Bureau data for 1997 show that there were 1,320 firms in 
this

[[Page 19326]]

category, total, that operated for the entire year. Of this total, 
1,303 firms had employment of 999 or fewer employees, and an additional 
17 firms had employment of 1,000 employees or more. Thus, under this 
category and associated small business size standard, the majority of 
firms can be considered small. For the census category Cellular and 
Other Wireless Telecommunications, Census Bureau data for 1997 show 
that there were 977 firms in this category, total, that operated for 
the entire year. Of this total, 965 firms had employment of 999 or 
fewer employees, and an additional 12 firms had employment of 1,000 
employees or more. Thus, under this second category and size standard, 
the majority of firms can, again, be considered small.
    40. Cellular Licensees. The SBA has developed a small business size 
standard for wireless firms within the broad economic census category 
``Cellular and Other Wireless Telecommunications.'' Under this SBA 
category, a wireless business is small if it has 1,500 or fewer 
employees. For the census category Cellular and Other Wireless 
Telecommunications firms, Census Bureau data for 1997 show that there 
were 977 firms in this category, total, that operated for the entire 
year. Of this total, 965 firms had employment of 999 or fewer 
employees, and an additional 12 firms had employment of 1,000 employees 
or more. Thus, under this category and size standard, the great 
majority of firms can be considered small. According to the most recent 
Trends in Telephone Service data, 719 carriers reported that they were 
engaged in the provision of cellular service, Personal Communications 
Service, or Specialized Mobile Radio Telephony services, which are 
placed together in the data. We have estimated that 294 of these are 
small, under the SBA small business size standard.
    41. Common Carrier Paging. The SBA has developed a small business 
size standard for wireless firms within the broad economic census 
categories of ``Cellular and Other Wireless Telecommunications.'' Under 
this SBA category, a wireless business is small if it has 1,500 or 
fewer employees. For the census category of Paging, Census Bureau data 
for 1997 show that there were 1,320 firms in this category, total, that 
operated for the entire year. Of this total, 1,303 firms had employment 
of 999 or fewer employees, and an additional 17 firms had employment of 
1,000 employees or more. Thus, under this category and associated small 
business size standard, the great majority of firms can be considered 
small. In the Paging Third Report and Order and Fifth Notice of 
Proposed Rulemaking, 62 FR 16004, April 3, 1997, we developed a small 
business size standard for ``small businesses'' and ``very small 
businesses'' for purposes of determining their eligibility for special 
provisions such as bidding credits and installment payments. A ``small 
business'' is an entity that, together with its affiliates and 
controlling principals, has average gross revenues not exceeding $15 
million for the preceding three years. Additionally, a ``very small 
business'' is an entity that, together with its affiliates and 
controlling principals, has average gross revenues that are not more 
than $3 million for the preceding three years. The SBA has approved 
these small business size standards. An auction of Metropolitan 
Economic Area licenses commenced on February 24, 2000, and closed on 
March 2, 2000. Of the 985 licenses auctioned, 440 were sold. Fifty-
seven companies claiming small business status won. According to the 
most recent Trends in Telephone Service, 433 carriers reported that 
they were engaged in the provision of paging and messaging services. Of 
those, we estimate that 423 are small, under the SBA approved small 
business size standard.
    42. Wireless Communications Services. This service can be used for 
fixed, mobile, radiolocation, and digital audio broadcasting satellite 
uses. The Commission established small business size standards for the 
wireless communications services auction. A ``small business'' is an 
entity with average gross revenues of $40 million for each of the three 
preceding years, and a ``very small business'' is an entity with 
average gross revenues of $15 million for each of the three preceding 
years. The SBA has approved these small business size standards. The 
Commission auctioned geographic area licenses in the wireless 
communications services. In the auction, there were seven winning 
bidders that qualified as ``very small business'' entities, and one 
that qualified as a ``small business'' entity.
    43. Wireless Telephony. Wireless telephony includes cellular, 
personal communications services, and specialized mobile radio 
telephony carriers. As noted earlier, the SBA has developed a small 
business size standard for ``Cellular and Other Wireless 
Telecommunications'' services. Under that SBA small business size 
standard, a business is small if it has 1,500 or fewer employees. 
According to the most recent Trends in Telephone Service data, 719 
carriers reported that they were engaged in the provision of wireless 
telephony. We have estimated that 294 of these are small under the SBA 
small business size standard.
    44. Broadband Personal Communications Service. The broadband 
Personal Communications Service (PCS) spectrum is divided into six 
frequency blocks designated A through F, and the Commission has held 
auctions for each block. The Commission defined ``small entity'' for 
Blocks C and F as an entity that has average gross revenues of $40 
million or less in the three previous calendar years. For Block F, an 
additional classification for ``very small business'' was added and is 
defined as an entity that, together with its affiliates, has average 
gross revenues of not more than $15 million for the preceding three 
calendar years.'' These standards defining ``small entity'' in the 
context of broadband PCS auctions have been approved by the SBA. No 
small businesses, within the SBA-approved small business size standards 
bid successfully for licenses in Blocks A and B. There were 90 winning 
bidders that qualified as small entities in the Block C auctions. A 
total of 93 small and very small business bidders won approximately 40 
percent of the 1,479 licenses for Blocks D, E, and F. On March 23, 
1999, the Commission re-auctioned 347 C, D, E, and F Block licenses. 
There were 48 small business winning bidders. On January 26, 2001, the 
Commission completed the auction of 422 C and F Broadband PCS licenses 
in Auction No. 35. Of the 35 winning bidders in this auction, 29 
qualified as ``small'' or ``very small'' businesses. Subsequent events, 
concerning Auction 35, including judicial and agency determinations, 
resulted in a total of 163 C and F Block licenses being available for 
grant. In addition, we note that, as a general matter, the number of 
winning bidders that qualify as small businesses at the close of an 
auction does not necessarily represent the number of small businesses 
currently in service. Also, the Commission does not generally track 
subsequent business size unless, in the context of assignments or 
transfers, unjust enrichment issues are implicated.
    45. Narrowband Personal Communications Services. To date, two 
auctions of narrowband PCS licenses have been conducted. For purposes 
of the two auctions that have already been held, ``small businesses'' 
were entities with average gross revenues for the prior three calendar 
years of $40 million or less. Through these auctions, the Commission 
has awarded a total of 41 licenses, out of which 11 were obtained by 
small businesses. To ensure

[[Page 19327]]

meaningful participation of small business entities in future auctions, 
the Commission has adopted a two-tiered small business size standard in 
the Narrowband PCS Second Report and Order, 65 FR 35875, June 6, 2000. 
A ``small business'' is an entity that, together with affiliates and 
controlling interests, has average gross revenues for the three 
preceding years of not more than $40 million. A ``very small business'' 
is an entity that, together with affiliates and controlling interests, 
has average gross revenues for the three preceding years of not more 
than $15 million. The SBA has approved these small business size 
standards. In the future, the Commission will auction 459 licenses to 
serve Metropolitan Trading Areas and 408 response channel licenses. 
There is also one megahertz of narrowband PCS spectrum that has been 
held in reserve and that the Commission has not yet decided to release 
for licensing. The Commission cannot predict accurately the number of 
licenses that will be awarded to small entities in future auctions. 
However, four of the 16 winning bidders in the two previous narrowband 
PCS auctions were small businesses, as that term was defined. The 
Commission assumes, for purposes of this analysis, that a large portion 
of the remaining narrowband PCS licenses will be awarded to small 
entities. The Commission also assumes that at least some small 
businesses will acquire narrowband PCS licenses by means of the 
Commission's partitioning and disaggregation rules.
    46. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service 
has both Phase I and Phase II licenses. Phase I licensing was conducted 
by lotteries in 1992 and 1993. There are approximately 1,515 such non-
nationwide licensees and four nationwide licensees currently authorized 
to operate in the 220 MHz band. The Commission has not developed a 
small business size standard for small entities specifically applicable 
to such incumbent 220 MHz Phase I licensees. To estimate the number of 
such licensees that are small businesses, we apply the small business 
size standard under the SBA rules applicable to ``Cellular and Other 
Wireless Telecommunications'' companies. This category provides that a 
small business is a wireless company employing no more than 1,500 
persons. According to the Census Bureau data for 1997, only 12 wireless 
firms out of a total of 1,238 such firms that operated for the entire 
year, had 1,000 or more employees. If this general ratio continues in 
the context of Phase I 220 MHz licensees, the Commission estimates that 
nearly all such licensees are small businesses under the SBA's small 
business size standard.
    47. 220 MHz Radio Service--Phase II Licensees. The 220 MHz service 
has both Phase I and Phase II licenses. The Phase II 220 MHz service is 
a new service, and is subject to spectrum auctions. In the 220 MHz 
Third Report and Order, 62 FR 16004, April 3, 1997, we adopted a small 
business size standard for ``small'' and ``very small'' businesses for 
purposes of determining their eligibility for special provisions such 
as bidding credits and installment payments. This small business size 
standard indicates that a ``small business'' is an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues not exceeding $15 million for the preceding three years. 
A ``very small business'' is an entity that, together with its 
affiliates and controlling principals, has average gross revenues that 
do not exceed $3 million for the preceding three years. The SBA has 
approved these small business size standards. Auctions of Phase II 
licenses commenced on September 15, 1998, and closed on October 22, 
1998. In the first auction, 908 licenses were auctioned in three 
different-sized geographic areas: three nationwide licenses, 30 
Regional Economic Area Group Licenses, and 875 Economic Area Licenses. 
Of the 908 licenses auctioned, 693 were sold. Thirty-nine small 
businesses won licenses in the first 220 MHz auction. The second 
auction included 225 licenses: 216 EA licenses and 9 EAG licenses. 
Fourteen companies claiming small business status won 158 licenses.
    48. 800 MHz and 900 MHz Specialized Mobile Radio Licenses. The 
Commission awards ``small entity'' and ``very small entity'' bidding 
credits in auctions for Specialized Mobile Radio (SMR) geographic area 
licenses in the 800 MHz and 900 MHz bands to firms that had revenues of 
no more than $15 million in each of the three previous calendar years, 
or that had revenues of no more than $3 million in each of the previous 
calendar years, respectively. These bidding credits apply to SMR 
providers in the 800 MHz and 900 MHz bands that either hold geographic 
area licenses or have obtained extended implementation authorizations. 
The Commission does not know how many firms provide 800 MHz or 900 MHz 
geographic area SMR service pursuant to extended implementation 
authorizations, nor how many of these providers have annual revenues of 
no more than $15 million. One firm has over $15 million in revenues. 
The Commission assumes, for purposes here, that all of the remaining 
existing extended implementation authorizations are held by small 
entities, as that term is defined by the SBA. The Commission has held 
auctions for geographic area licenses in the 800 MHz and 900 MHz SMR 
bands. There were 60 winning bidders that qualified as small or very 
small entities in the 900 MHz SMR auctions. Of the 1,020 licenses won 
in the 900 MHz auction, bidders qualifying as small or very small 
entities won 263 licenses. In the 800 MHz auction, 38 of the 524 
licenses won were won by small and very small entities. Consequently, 
the Commission estimates that there are 301 or fewer small entity SMR 
licensees in the 800 MHz and 900 MHz bands that may be affected by the 
rules and policies adopted herein.
    49. 700 MHz Guard Band Licensees. In the 700 MHz Guard Band Order, 
65 FR 17594, April 4, 2000, we adopted a small business size standard 
for ``small businesses'' and ``very small businesses'' for purposes of 
determining their eligibility for special provisions such as bidding 
credits and installment payments. A ``small business'' as an entity 
that, together with its affiliates and controlling principals, has 
average gross revenues not exceeding $15 million for the preceding 
three years. Additionally, a ``very small business'' is an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues that are not more than $3 million for the preceding 
three years. An auction of 52 Major Economic Area licenses commenced on 
September 6, 2000, and closed on September 21, 2000. Of the 104 
licenses auctioned, 96 licenses were sold to nine bidders. Five of 
these bidders were small businesses that won a total of 26 licenses. A 
second auction of 700 MHz Guard Band licenses commenced on February 13, 
2001 and closed on February 21, 2001. All eight of the licenses 
auctioned were sold to three bidders. One of these bidders was a small 
business that won a total of two licenses.
    50. Rural Radiotelephone Service. The Commission has not adopted a 
size standard for small businesses specific to the Rural Radiotelephone 
Service. A significant subset of the Rural Radiotelephone Service is 
the Basic Exchange Telephone Radio System. The Commission uses the 
SBA's small business size standard applicable to ``Cellular and Other 
Wireless Telecommunications,'' i.e., an entity employing no more than 
1,500 persons. There are approximately 1,000 licensees in the Rural 
Radiotelephone Service, and the Commission estimates that there are 
1,000 or fewer small entity licensees

[[Page 19328]]

in the Rural Radiotelephone Service that may be affected by the rules 
and policies adopted herein.
    51. Air-Ground Radiotelephone Service. The Commission has not 
adopted a small business size standard specific to the Air-Ground 
Radiotelephone Service. We will use SBA's small business size standard 
applicable to ``Cellular and Other Wireless Telecommunications,'' i.e., 
an entity employing no more than 1,500 persons. There are approximately 
100 licensees in the Air-Ground Radiotelephone Service, and we estimate 
that almost all of them qualify as small under the SBA small business 
size standard.
    52. 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.
    53. 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.
    54. 39 GHz Service. The Commission created a special small business 
size standard for 39 GHz licenses--an entity that has average gross 
revenues of $40 million or less in the three previous calendar years. 
An additional size standard for ``very small business'' is: an entity 
that, together with affiliates, has average gross revenues of not more 
than $15 million for the preceding three calendar years. The SBA has 
approved these small business size standards. The auction of the 2,173 
39 GHz licenses began on April 12, 2000 and closed on May 8, 2000. The 
18 bidders who claimed small business status won 849 licenses. 
Consequently, the Commission estimates that 18 or fewer 39 GHz 
licensees are small entities that may be affected by the rules and 
polices adopted herein.
    55. Multipoint Distribution Service, Multichannel Multipoint 
Distribution Service, and ITFS. Multichannel Multipoint Distribution 
Service systems, often referred to as ``wireless cable,'' transmit 
video programming to subscribers using the microwave frequencies of the 
Multipoint Distribution Service (MDS) and Instructional Television 
Fixed Service (ITFS). In connection with the 1996 MDS auction, the 
Commission established a small business size standard as an entity that 
had annual average gross revenues of less than $40 million in the 
previous three calendar years. The MDS auctions resulted in 67 
successful bidders obtaining licensing opportunities for 493 Basic 
Trading Areas. Of the 67 auction winners, 61 met the definition of a 
small business. MDS also includes licensees of stations 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.
    56. Local Multipoint Distribution Service. Local Multipoint 
Distribution Service (LMDS) is a fixed broadband point-to-multipoint 
microwave service that provides for two-way video telecommunications. 
The auction of the 1,030 LMDS licenses began on February 18, 1998 and 
closed on March 25, 1998. The Commission established a small business 
size standard for LMDS licenses as an entity that has average gross 
revenues of less than $40 million in the three previous calendar years. 
An additional small business size standard for ``very small business'' 
was added as an entity that, together with its affiliates, has average 
gross revenues of not more than $15 million for the preceding three 
calendar years. The SBA has approved these small business size 
standards in the context of LMDS auctions. There were 93 winning 
bidders that qualified as small entities in the LMDS auctions. A total 
of 93 small and very small business bidders won approximately 277 A 
Block licenses and 387 B Block licenses. On March 27, 1999, the 
Commission re-auctioned 161 licenses; there were 40 winning bidders. 
Based on this information, we conclude that the number of small LMDS 
licenses consists of the 93 winning bidders in the first auction and 
the 40 winning bidders in the re-auction, for a total of 133 small 
entity LMDS providers.
    57. 218-219 MHz Service. The first auction of 218-219 MHz spectrum 
resulted in 170 entities winning licenses for 594 Metropolitan 
Statistical Area licenses. Of the 594 licenses, 557 were won by 
entities qualifying as a small business. For that auction, the small 
business size standard was an entity that, together with its 
affiliates, has no more than a $6 million net worth and, after federal 
income taxes (excluding any carry over losses), has no more than $2 
million in annual profits each year for the previous two years. In the 
218-219 MHz Report and Order and Memorandum Opinion and Order, 64 FR 
59656, November 3, 1999, we established a small business size standard 
for a ``small business'' as an entity that, together with its 
affiliates and persons or entities that hold interests in such an 
entity and their affiliates, has average annual gross revenues not to 
exceed $15 million for the preceding three years. A ``very small 
business'' is defined as an entity that, together with its affiliates 
and persons or entities that holds interests in such an entity and its 
affiliates, has average annual gross revenues not to exceed $3

[[Page 19329]]

million for the preceding three years. We cannot estimate, however, the 
number of licenses that will be won by entities qualifying as small or 
very small businesses under our rules in future auctions of 218-219 MHz 
spectrum.
    58. 24 GHz--Incumbent Licensees. This analysis may affect incumbent 
licensees who were relocated to the 24 GHz band from the 18 GHz band, 
and applicants who wish to provide services in the 24 GHz band. The 
applicable SBA small business size standard is that of ``Cellular and 
Other Wireless Telecommunications'' companies. This category provides 
that such a company is small if it employs no more than 1,500 persons. 
According to Census Bureau data for 1997, there were 977 firms in this 
category, total, that operated for the entire year. Of this total, 965 
firms had employment of 999 or fewer employees, and an additional 12 
firms had employment of 1,000 employees or more. Thus, under this size 
standard, the great majority of firms can be considered small. These 
broader census data notwithstanding, we believe that there are only two 
licensees in the 24 GHz band that were relocated from the 18 GHz band, 
Teligent and TRW, Inc. It is our understanding that Teligent and its 
related companies have less than 1,500 employees, though this may 
change in the future. TRW is not a small entity. Thus, only one 
incumbent licensee in the 24 GHz band is a small business entity.
    59. 24 GHz--Future Licensees. With respect to new applicants in the 
24 GHz band, the small business size standard for ``small business'' is 
an entity that, together with controlling interests and affiliates, has 
average annual gross revenues for the three preceding years not in 
excess of $15 million. ``Very small business'' in the 24 GHz band is an 
entity that, together with controlling interests and affiliates, has 
average gross revenues not exceeding $3 million for the preceding three 
years. The SBA has approved these small business size standards. These 
size standards will apply to the future auction, if held.

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

    60. In the IRFA, we invited comment on any possible costs 
associated with the abbreviated dialing arrangement ultimately chosen 
to comply with the Pipeline Safety Act. We received five general, non-
IRFA comments in response to this issue. Commenters support the North 
American numbering Council's (NANC) recommendation that the cost of 
implementing a One Call service should not be an unfunded mandate. 
Qwest asserts that, although past N11 deployments have not typically 
involved federal cost recovery, state regulatory commissions are not 
uniform in the way in which they resolve cost recovery matters 
associated with N11 deployments. Specifically, the American Public 
Communications Council (APCC) contends that if payphone service 
providers are not excluded from the statutory mandate, then they should 
also be compensated for such calls.
    61. While we recognize that there may be some costs associated with 
implementation of the 811 code, we have not specified parameters for 
cost recovery in this Order. The Pipeline Safety Act did not provide 
for federal financial support as part of the mandate for a nationwide 
abbreviated dialing arrangement for access to One Call Centers. 
Therefore, we find that the Congressional mandate and benefits of a 
national N11 code assignment, specifically 811, outweigh any concerns 
regarding cost recovery on the federal level. These issues are most 
appropriately addressed by the state and local governments. As 
indicated above, we believe that state commissions are in the best 
position to address issues associated with implementing 811 because 
many of the One Call Centers were developed by, or under the auspices 
of, the state commissions.

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

    62. The RFA requires an agency to describe any significant, 
specifically small business, alternatives that it has considered in 
reaching its proposed approach, which may include the following four 
alternatives (among others): (1) The establishment of differing 
compliance or reporting requirements or timetables that take into 
account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance or 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.
    63. In adopting 811 as the national abbreviated dialing code for 
access to One Call Centers, we have taken steps to minimize the impact 
on small entities. The overall objective of this proceeding was to 
assess possible abbreviated dialing arrangements to use to access state 
One Call Centers as mandated by the Pipeline Safety Act, while at the 
same time, seeking to minimize any adverse impact on numbering 
resources. We, therefore, sought comment on various abbreviated dialing 
arrangements, including those considered and recommended by the NANC, 
that could be used by state One Call notification systems in compliance 
with the Pipeline Safety Act while at the same time minimizing, to the 
extent possible, any adverse impact on numbering resources, including 
any impact on small entities.
    64. After reviewing the comments and considering the possible 
abbreviated dialing arrangements that could be used by state One Call 
notification systems in compliance with the Pipeline Safety Act, we 
conclude that an N11 code is the best solution, within the framework of 
the statute, for access to One Call Centers. Thus, consistent with the 
statutory mandate, we designate 811 as the national abbreviated dialing 
code to be used by state One Call notification systems for providing 
advanced notice of excavation activities to underground facility 
operators in compliance with the Pipeline Safety Act. We agree with 
commenters that the other proposed alternatives--codes using a leading 
star or number sign, e.g. *344 or 344, and the establishment 
of an Easily Recognizable Code (ERC), such as 344, as an abbreviated 
dialing code are impractical, costly to implement, and could delay the 
availability of a national One Call number for years. Moreover, this 
abbreviated dialing arrangement would not achieve the uniformity 
mandated by the Pipeline Safety Act since all users would not be 
dialing the same sequence if the code selected includes a star or 
number sign. We believe that 811 will have less impact on customer 
dialing patterns and can be implemented without the substantial cost 
and delay of switch development required with other proposed 
alternatives.
    65. Although we recognize that using 811 depletes the quantity of 
remaining N11 codes assignable for other purposes, using an N11 code to 
access One Call Centers will consume fewer numbering resources than 
certain other alternative abbreviated dialing arrangements. 
Additionally, the use of an N11 code to access One Call services 
follows the existing conventions for abbreviated dialing already 
familiar to customers. The N11 architecture is an established 
abbreviated dialing plan that is recognized by switch manufacturers and 
the public at large. Most significantly, using an N11 code such as 811 
satisfies the legislative mandate for a three-digit nationwide number.
    66. Further, although the Commission has allowed the local use of 
unassigned N11 codes, it has recognized that this

[[Page 19330]]

use must be discontinued on short notice. In order to minimize the 
impact of our action, including the impact on small business entities, 
we provide a two year period, from publication of this Order in the 
Federal Register, for implementing the 811 code. Based on the record 
before us, we believe two years from publication of this Order in the 
Federal Register is a reasonable time period for implementation of 811. 
The alternative of not providing for a transition period was considered 
but rejected because we believe a transition period is necessary to 
provide all telecommunications carriers, including wireline, wireless, 
and payphone service providers, sufficient time to make the necessary 
network modifications or upgrades, as well as integrate existing One 
Call notification systems, thus minimizing any adverse or unfair impact 
on smaller entities. In addition, this transition period will give 
carriers time to clear this number of any other existing uses, provide 
customer education, and ensure that there is no unreasonably abrupt 
disruption of the existing uses.

I. Publication of FRFA

    67. The Commission will send a copy of the Order, including this 
FRFA, to the Chief Counsel for Advocacy of the Small Business 
Administration. A copy of the Order and FRFA (or summaries thereof) 
will also be published in the Federal Register.

IV. Ordering Clauses

    68. Pursuant to the authority contained in sections 1, 4(i), 4(j), 
201-205, 214, 254, and 403 of the Communications Act of 1934, as 
amended, this Sixth Report and Order is adopted.
    69. Pursuant to section 251(e)(3) of the Communications Act of 
1934, as amended, 47 U.S.C. 251(e)(3), 811 is assigned as the national 
abbreviated dialing code to be used exclusively for access to Once Call 
Centers, effective May 13, 2005.
    70. The Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center, shall send a copy of this Order, 
including the Final Regulatory Flexibility Analysis, to the Chief 
Counsel for Advocacy of the Small Business Administration.
    71. The Commission will not send a copy of this Order pursuant to 
the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A), because no 
rules were adopted or changed.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 05-7179 Filed 4-12-05; 8:45 am]
BILLING CODE 6712-01-P