[Federal Register Volume 70, Number 124 (Wednesday, June 29, 2005)]
[Proposed Rules]
[Pages 37307-37317]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-12827]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 9

[WC Docket No. 05-196; FCC 05-116]


E911 Requirements for IP-Enabled Service Providers

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Federal Communications Commission (Commission) proposes to 
amend its rules that require providers of interconnected VoIP (VoIP) 
services--meaning VoIP service that allows a user generally to receive 
calls originating from and to terminate calls to the public switched 
telephone network (PSTN)--to provide enhanced 911 (E911) capabilities 
to their customers as a standard feature of service. The Commission 
initiates this rulemaking to determine what additional steps it should 
take to ensure that providers of VoIP services that interconnect with 
the nation's PSTN provide ubiquitous and reliable E911 service. These 
changes will enhance public safety and ensure E911 access to emergency 
services for users of interconnected VoIP services.

DATES: Comments are due on or before August 15, 2005, and reply 
comments are due on or before September 12, 2005.

ADDRESSES: You may submit comments, identified by WC Docket No. 05-196, 
by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Agency Web Site: http://www.fcc.gov. Follow the 
instructions for submitting comments on http://www.fcc.gov/cgb/ecfs/.
     E-mail: [email protected], and include the following words in 
the body of the message, ``get form.'' A sample form and directions 
will be sent in response.
     Mail: Federal Communications Commission, 445 12th Street, 
SW., Washington DC 20554 .
     Hand Delivery/Courier: 236 Massachusetts Avenue, NE., 
Suite 110, Washington, DC 20002.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to http://www.fcc.gov/cgb/ecfs/, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on the rulemaking process, see the 
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION 
section of this document.
    Docket: For access to the docket to read background documents or 
comments received, go http://www.fcc.gov/cgb/ecfs/.

FOR FURTHER INFORMATION CONTACT: Christi Shewman, Attorney-Advisor, 
Competition Policy Division, Wireline Competition Bureau, at (202) 418-
1686.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking (NPRM) in WC Docket No. 05-196, FCC 05-116, 
adopted May 19, 2005, and released June 3, 2005. The complete text of 
this NPRM is available for inspection and copying during normal 
business hours in the FCC Reference Information Center, Portals II, 445 
12th Street, SW., Room CY-A257, Washington, DC, 20554. This document 
may also be purchased from the Commission's duplicating contractor, 
Best Copy and Printing, Inc., 445 12th Street, SW., Room CY-B402, 
Washington, DC 20554, telephone (800) 378-3160 or (202) 863-2893, 
facsimile (202) 863-2898, or via e-mail at http://www.bcpiweb.com. It 
is also available on the Commission's Web site at http://www.fcc.gov.

Public Participation

    Comments may be filed using: (1) The Commission's Electronic 
Comment Filing System (ECFS), (2) the Federal Government's eRulemaking 
Portal, or (3) by filing paper copies. See Electronic Filing of 
Documents in Rulemaking Proceedings, 63 FR 24121 (May 1, 1998).
     Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: http://www.fcc.gov/cgb/ecfs/ 
or the Federal eRulemaking Portal: http://www.regulations.gov. Filers 
should follow the instructions provided on the Web site for submitting 
comments.
     For ECFS filers, if multiple docket or rulemaking numbers 
appear in the caption of this proceeding, filers must transmit one 
electronic copy of the comments for each docket or rulemaking number 
referenced in the caption. In completing the transmittal screen, filers 
should include their full name, U.S. Postal Service mailing address, 
and the applicable docket or rulemaking number. Parties may also submit 
an electronic comment by Internet e-mail. To get filing instructions, 
filers should send an e-mail to [email protected], and include the following 
words in the body of the message, ``get form.'' A sample form and 
directions will be sent in response.
     Paper Filers: Parties who choose to file by paper must 
file an original and four copies of each filing. If more than one 
docket or rulemaking number appears in the caption of this proceeding, 
filers must submit two additional copies for each additional docket or 
rulemaking number.
    Filings can be sent by hand or messenger delivery, by commercial 
overnight courier, or by first-class or overnight U.S. Postal Service 
mail (although we continue to experience delays in receiving U.S. 
Postal Service mail). All filings must be addressed to the Commission's 
Secretary, Office of the Secretary, Federal Communications Commission.
     The Commission's contractor will receive hand-delivered or 
messenger-delivered paper filings for the Commission's Secretary at 236 
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing 
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be 
held together with rubber bands or fasteners. Any envelopes must be 
disposed of before entering the building.
     Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743.
     U.S. Postal Service first-class, Express, and Priority 
mail should be addressed to 445 12th Street, SW., Washington DC 20554.
    All filings must be addressed to the Commission's Secretary, 
Marlene H. Dortch, Office of the Secretary, Federal Communications 
Commission, 445 12th Street, SW., Washington, DC 20554. Parties should 
also send a copy of their filings to Janice Myles, Competition Policy 
Division, Wireline Competition Bureau, Federal Communications 
Commission, Room 5-C140, 445 12th Street, SW., Washington, DC 20554, or 
by e-mail to [email protected]. Parties shall also serve one copy 
with

[[Page 37308]]

the Commission's copy contractor, Best Copy and Printing, Inc. (BCPI), 
Portals II, 445 12th Street, SW., Room CY-B402, Washington, DC 20554, 
(202) 488-5300, or via e-mail to [email protected].

Synopsis of the Notice of Proposed Rulemaking (NPRM)

    1. In this NPRM, we seek comment on what additional steps the 
Commission should take to ensure that providers of VoIP services that 
interconnect with the nation's PSTN provide ubiquitous and reliable 
E911 service. The Order that accompanies this NPRM is published 
elsewhere in this issue of the Federal Register. This Order is the 
Commission's first step to ensure that the life-saving benefits of E911 
service that wireline telephone and wireless telephone users have come 
to rely on also are extended to citizens who choose to communicate 
using interconnected VoIP services. Due to the existing state of 
technology, today's Order relies in some cases on users to provide the 
location information that will be delivered to public safety answering 
points (PSAPs) in an emergency, and thus is an immediate step toward a 
more advanced solution in which the user automatically can be located 
without assistance from the user. We seek comment on what the 
Commission can do to further the development of this new technology, 
and on issues raised by today's Order, including whether the Commission 
should expand the scope and requirements of this Order. Commenters 
should take note of the Commission's view that while a provider of VoIP 
service enjoys the opportunity to introduce new and exciting public 
interest benefits to the communications marketplace, and to profit from 
those offerings, that opportunity brings with it the responsibility to 
ensure that public safety is protected.
    2. As the Commission previously has discussed, one of the central 
customer benefits of portable interconnected VoIP services is the lack 
of geographic restrictions. However, because portable interconnected 
VoIP services may be offered independent of geography, currently there 
is no way for portable VoIP providers reliably and automatically to 
provide location information to PSAPs for these services without the 
customer's active cooperation. What can the Commission do to facilitate 
the development of techniques for automatically identifying the 
geographic location of users of this type of VoIP service? What role 
should the Commission play to further the evolution of E911 service and 
E911 systems that do not depend on a customer providing his or her 
location information? A number of possible methods have been proposed 
to automatically identify the location of a VoIP user, including 
gathering location information through the use of: an access jack 
inventory; a wireless access point inventory; access point mapping and 
triangulation; HDTV signal triangulation; and various GPS-based 
solutions. What role would be most productive for the Commission to 
play in facilitating the adoption of one or more of these possible 
solutions, or facilitating some other solution, to automatically 
identify a VoIP service customer's location? Are any of these solutions 
more promising than others? Are there any reasons why certain of these 
solutions are unworkable? What other solutions could be used to provide 
location information automatically in the VoIP service context? Should 
the Commission require all terminal adapters or other equipment used in 
the provision of interconnected VoIP service sold as of June 1, 2006 to 
be capable of providing location information automatically, whether 
embedded in other equipment or sold to customers as a separate device? 
Under what authority could the Commission take such actions?
    3. We also seek comment on issues raised by our decision today to 
impose E911 service obligations on providers of interconnected VoIP 
services. The scope of today's Order is limited to providers of 
interconnected VoIP services. We seek comment on whether the Commission 
should extend these obligations, or similar obligations, to providers 
of other VoIP services that are not covered by the rules adopted today. 
For instance, what E911 obligations, if any, should apply to VoIP 
services that are not fully interconnected to the PSTN? Specifically, 
should E911 obligations apply to VoIP services that enable users to 
terminate calls to the PSTN but do not permit users to receive calls 
that originate on the PSTN? Should E911 obligations apply to the 
converse situation in which a VoIP service enables users to receive 
calls from the PSTN but does not permit the user to make calls 
terminating to the PSTN? We tentatively conclude that a provider of a 
VoIP service offering that permits users generally to receive calls 
that originate on the PSTN and separately makes available a different 
offering that permits users generally to terminate calls to the PSTN 
should be subject to the rules we adopt in today's Order if a user can 
combine those separate offerings or can use them simultaneously or in 
immediate succession. Are there any other services upon which the 
Commission should impose E911 obligations, including any IP-based voice 
services that do not require a broadband connection?
    4. Does the Commission need to adopt regulations in addition to 
those imposed by today's Order to ensure that interconnected VoIP 
service customers obtain the required level of E911 services? It is our 
expectation that end-user updates of Registered Location information 
will take place immediately. If this is not feasible, what performance 
standards should the Commission adopt regarding the length of time 
between when an end user updates Registered Location information and 
when the service provider takes the actions necessary to enable E911 
from that new location? How should such requirements be structured? How 
should providers of interconnected VoIP service satisfy the 
requirements we adopt today in cases in which a subscriber's Registered 
Location is not associated with a street address? What requirements, if 
any, should we impose on providers of interconnected VoIP service in 
geographic areas served by PSAPs that are not connected to a Selective 
Router? How should the use of wireless broadband connections such as 
Wi-Fi or WiMax impact the applicability of the obligations we adopt 
today? Would providers of wireless interconnected VoIP service be more 
appropriately subject to our existing 911/E911 rules for commercial 
mobile radio service? Should the Commission require VoIP service 
providers to create redundant systems for providing E911 services, such 
as requiring redundant trunks to each Selective Router and/or requiring 
that multiple Selective Routers be able to route calls to each PSAP? We 
also seek comment on whether the Commission should impose additional or 
more restrictive customer notification requirements relating to E911 on 
VoIP providers, and on the sufficiency of our customer acknowledgement 
requirements.
    5. Should the Commission impose reporting obligations on VoIP 
service providers other than the compliance letter we impose in today's 
Order? Are there other ways for the Commission to monitor 
implementation of its E911 rules without imposing reporting 
requirements? We note that the Commission has imposed progress 
reporting requirements in the past for implementation and enforcement 
of 911/E911 transition deadlines for wireless and wireline providers. 
Should the Commission require interconnected VoIP providers to report 
what progress they are making in developing ways to

[[Page 37309]]

locate automatically a user who dials 911? Should the Commission 
require reporting of any other information by interconnected VoIP 
providers? If the Commission adopts additional reporting requirements, 
what are the appropriate deadlines for such progress reports? Under 
what authority could the Commission take such actions?
    6. We seek comment on what role states can and should play to help 
implement the E911 rules we adopt today. We recognize the historic and 
important role of states and localities in public safety matters. State 
and local governments have filled an especially important role in 
creating and regulating 911/E911 operations--a role states have 
shouldered even in the context of wireless services. Should state and 
local governments play a role similar to the roles they play in 
implementing the Commission's wireless 911/E911 rules? Should the 
Commission take any action to facilitate the states' ability to collect 
911 fees from interconnected VoIP providers, either directly or 
indirectly? How can the Commission and the states work together to 
ensure the public's safety?
    7. Should the Commission adopt any customer privacy protections 
related to provision of E911 service by interconnected VoIP service 
providers? The E911 rules we adopt today when fully implemented will 
require interconnected VoIP service providers to transmit a customer's 
Registered Location to an appropriate PSAP, which necessarily requires 
providers of such services to maintain a list of their customers' 
Registered Location, and makes that information available to public 
safety professionals and others when the customer dials 911. Wireline 
and wireless telecommunications carriers are already subject to privacy 
requirements. Should the Commission adopt similar privacy protections 
in the context of interconnected VoIP service? Under what authority 
could we adopt such rules?
    8. Finally, we seek comment on whether persons with disabilities 
can use interconnected VoIP service and other VoIP services to directly 
call a PSAP via a TTY in light of the requirement in Title II of the 
Americans with Disabilities Act (ADA) that PSAPs be directly accessible 
by TTYs. Furthermore, the Commission in 1999 released a Notice of 
Inquiry (64 FR 63277, November 19, 1999) raising specific questions 
regarding the application of the disability accessibility provisions 
found in sections 251(a)(2) and 255 of the Communications Act, as 
amended (Act), in the context of ``IP telephony'' and ``computer-based 
equipment that replicates telecommunications functionality.'' That 
Notice of Inquiry sought comment on the extent to which Internet 
telephony was impairing access to communications services among people 
with disabilities, the efforts that manufacturers were taking to render 
new technologies accessible, and the degree to which these technologies 
should be subjected to the same disability access requirements as 
traditional telephony facilities. We ask commenters to refresh the 
record in that proceeding in light of today's Order by filing comments 
in this docket. Are there any steps that the Commission needs to take 
to ensure that people with disabilities who desire to use 
interconnected VoIP service obtain access to E911 services? What is the 
basis of the Commission's authority to impose any obligations that 
commenters feel are warranted?

Initial Paperwork Reduction Act of 1995 Analysis

    9. This document does not contain proposed information collection 
requirements subject to the Paperwork Reduction Act of 1995, Public Law 
104-13. In addition, therefore, it does not contain any proposed 
information collection burden ``for small business concerns 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).

Initial Regulatory Flexibility Analysis

    10. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), the Commission has prepared the present Initial 
Regulatory Flexibility Analysis (IRFA) of the possible significant 
economic impact on small entities that might result from this Notice of 
Proposed Rulemaking (NPRM). Written public comments are requested on 
this IRFA. Comments must be identified as responses to the IRFA and 
must be filed by the deadlines for comments on the NPRM provided above. 
The Commission will send a copy of the NPRM, including this IRFA, to 
the Chief Counsel for Advocacy of the Small Business Administration.

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

    11. In the NPRM, we seek comment on what additional steps the 
Commission should take to ensure that providers of VoIP services that 
interconnect with the nation's existing public switched telephone 
network--``interconnected VoIP service''--provide ubiquitous and 
reliable E911 service. Due to the existing state of technology, the 
Order relies on users to provide the location information that will be 
delivered to PSAPs in an emergency, and thus is an immediate step 
toward a more advanced solution in which the user automatically can be 
located without assistance form the user. The NPRM seeks comment on: 
What the Commission can do to further the development of this new 
technology; whether the Commission should expand the scope and 
requirements of this Order; the role states can and should play in the 
implementation thereof; the need for consumer privacy protections; the 
need for stronger customer notification practices relating to 911 
service; and whether persons with disabilities can use interconnected 
VoIP service and other VoIP services to directly call a PSAP via a TTY 
in light of the requirement in Title II of the Americans with 
Disabilities Act (ADA) that PSAPs be directly accessible by TTYs. The 
NPRM further asks commenters to refresh the record regarding the 
application of the disability accessibility provisions found in 
sections 251(a)(2) and 255 of the Act in the context of ``IP 
telephony'' and ``computer-based equipment that replicates 
telecommunications functionality.''

2. Legal Basis

    12. The legal basis for any action that may be taken pursuant to 
this NPRM is contained in sections 1, 4(i), 4(j), 251(e), and 303(r) of 
the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i)-(j), 
251(e), 303(r), and sections 1.1, 1.48, 1.411, 1.412, 1.415, 1.419, and 
1.1200-1.1216, of the Commission's rules, 47 CFR 1.1, 1.48, 1.411, 
1.412, 1.415, 1.419, 1.1200-1.1216.

3. Description and Estimate of the Number of Small Entities to Which 
Rules May Apply

    13. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules. 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 37310]]

    14. Small Businesses. Nationwide, there are a total of 
approximately 22.4 million small businesses, according to SBA data.
    15. Small Organizations. Nationwide, there are approximately 1.6 
million small organizations.
    16. Small Governmental Jurisdictions. The term ``small governmental 
jurisdiction'' is defined as ``governments of cities, towns, townships, 
villages, school districts, or special districts, with a population of 
less than fifty thousand.'' As of 1997, there were approximately 87,453 
governmental jurisdictions in the United States. This number includes 
39,044 county governments, municipalities, and townships, of which 
37,546 (approximately 96.2%) have populations of fewer than 50,000, and 
of which 1,498 have populations of 50,000 or more. Thus, we estimate 
the number of small governmental jurisdictions overall to be 84,098 or 
fewer.
a. Telecommunications Service Entities
    17. Wireline Carriers and Service Providers. 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.
    18. Incumbent Local Exchange Carriers (LECs). 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. The Commission estimates 
that most providers of incumbent local exchange service are small 
businesses that may be affected by our action.
    19. Competitive Local Exchange Carriers (CLECs), Competitive Access 
Providers (CAPs), ``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. 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.
    20. 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. The Commission estimates that the majority of local 
resellers are small entities that may be affected by our action.
    21. 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. The Commission estimates that the majority of toll resellers 
are small entities that may be affected by our action.
    22. Payphone Service Providers (PSPs). 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. The Commission estimates that the majority of payphone 
service providers are small entities that may be affected by our 
action.
    23. Interexchange Carriers (IXCs). 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. The Commission estimates that the majority of IXCs are 
small entities that may be affected by our action.
    24. Operator Service Providers (OSPs). 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. The Commission estimates that the majority of OSPs are small 
entities that may be affected by our action.
    25. 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. 
The Commission estimates that all or the majority of prepaid calling 
card providers are small entities that may be affected by our action.
    26. 800 and 800-Like Service Subscribers. Neither the Commission 
nor the SBA has developed a small business size standard specifically 
for 800 and 800-like service (``toll free'') subscribers. 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. We estimate that there are 
7,692,955 or fewer small entity 800 subscribers; 7,706,393 or fewer 
small entity 888 subscribers; and 1,946,538 or fewer small entity 877 
subscribers.
    27. International Service Providers. The Commission has not 
developed a small business size standard specifically for providers of 
international service. The appropriate size standards under SBA rules 
are for the two broad categories of Satellite Telecommunications and 
Other Telecommunications. Under both categories, such a business is 
small if it has $12.5 million or less in average annual receipts. The 
majority of Satellite Telecommunications firms can be considered small.
    28. The second category--Other Telecommunications--includes 
``establishments primarily engaged in * * * providing satellite 
terminal stations and associated facilities operationally connected 
with one or more terrestrial communications systems and capable of 
transmitting telecommunications to or receiving telecommunications from 
satellite systems.'' Under this second size standard, the majority of 
firms can be considered small.
    29. Wireless Telecommunications Service Providers. Below, for those 
services subject to auctions, 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

[[Page 37311]]

generally track subsequent business size unless, in the context of 
assignments or transfers, unjust enrichment issues are implicated.
    30. 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. Under both categories and 
associated small business size standards, the majority of firms can be 
considered small.
    31. 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. Under this category and size standard, the great majority of 
firms can be considered small. We have estimated that 245 of the 
entities engaged in the provision of cellular service, Personal 
Communications Service (PCS), or Specialized Mobile Radio (SMR) 
Telephony services are small under the SBA small business size 
standard.
    32. Common Carrier Paging. 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. Under this category and associated small business size 
standard, the majority of firms can be considered small. In the Paging 
Third Report and Order, 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. Also, according to Commission data, 346 carriers reported that 
they were engaged in the provision of paging and messaging services. Of 
those, we estimate that 341 are small, under the SBA-approved small 
business size standard.
    33. 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.
    34. Wireless Telephony. Wireless telephony includes cellular, 
personal communications services (PCS), and specialized mobile radio 
(SMR) 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. We 
have estimated that 245 of the carriers who reported to us that they 
were engaged in the provision of wireless telephony are small under the 
SBA small business size standard.
    35. 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.
    36. Narrowband Personal Communications Services. To date, two 
auctions of narrowband personal communications services (PCS) licenses 
have been conducted. For purposes of the two auctions that have already 
been held, ``small businesses'' were entities with average gross 
revenues for the prior three calendar years of $40 million or less. 
Through these auctions, the Commission has awarded a total of 41 
licenses, out of which 11 were obtained by small businesses. To ensure 
meaningful participation of small business entities in future auctions, 
the Commission has adopted a two-tiered small business size standard in 
the Narrowband PCS Second Report and Order. A ``small business'' is an 
entity that, together with affiliates and controlling interests, has 
average gross revenues for the three preceding years of not more than 
$40 million. A ``very small business'' is an entity that, together with 
affiliates and controlling interests, has average gross revenues for 
the three preceding years of not more than $15 million. The SBA has 
approved these small business size standards. In the future, the 
Commission will auction 459 licenses to serve Metropolitan Trading 
Areas (MTAs) and 408 response channel licenses. There is also one 
megahertz of narrowband PCS spectrum that has been held in reserve and 
that the Commission has not yet decided to release for 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

[[Page 37312]]

acquire narrowband PCS licenses by means of the Commission's 
partitioning and disaggregation rules.
    37. 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. Under this second category and size standard, the majority of 
firms can be considered small. Assuming 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.
    38. 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.
    39. 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.
    40. 700 MHz Guard Band Licensees. In the 700 MHz Guard Band Order, 
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 (MEA) 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.
    41. Rural Radiotelephone Service. The Commission has not adopted a 
size standard for small businesses specific to the Rural Radiotelephone 
Service. A significant subset of the Rural Radiotelephone Service is 
the Basic Exchange Telephone Radio System (BETRS). The Commission uses 
the SBA's small business size standard applicable to ``Cellular and 
Other Wireless Telecommunications,'' i.e., an entity employing no more 
than 1,500 persons. There are approximately 1,000 licensees in the 
Rural Radiotelephone Service, and the Commission estimates that there 
are 1,000 or fewer small entity licensees in the Rural Radiotelephone 
Service that may be affected by the rules and policies adopted herein.
    42. 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.
    43. Aviation and Marine Radio Services. Small businesses in the 
aviation and marine radio services use a very high frequency (VHF) 
marine or aircraft radio and, as appropriate, an emergency position-
indicating radio beacon (and/or radar) or an emergency locator 
transmitter. The Commission has not developed a small business size 
standard specifically applicable to these small businesses. 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. Most 
applicants for recreational licenses are individuals. Approximately 
581,000 ship station licensees and 131,000 aircraft station licensees 
operate domestically and are not subject to the radio carriage 
requirements of any statute or treaty. For purposes of our evaluations 
in this analysis, we estimate that there are up to approximately 
712,000 licensees that are small businesses (or individuals) under the 
SBA standard. In addition, between December 3, 1998 and

[[Page 37313]]

December 14, 1998, the Commission held an auction of 42 VHF Public 
Coast licenses in the 157.1875-157.4500 MHz (ship transmit) and 
161.775-162.0125 MHz (coast transmit) bands. For purposes of the 
auction, the Commission defined a ``small'' business as an entity that, 
together with controlling interests and affiliates, has average gross 
revenues for the preceding three years not to exceed $15 million 
dollars. In addition, a ``very small'' business is one that, together 
with controlling interests and affiliates, has average gross revenues 
for the preceding three years not to exceed $3 million dollars. There 
are approximately 10,672 licensees in the Marine Coast Service, and the 
Commission estimates that almost all of them qualify as ``small'' 
businesses under the above special small business size standards.
    44. 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 is 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.
    45. 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.
    46. 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.
    47. 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.
    48. 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. 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.
    49. 218-219 MHz Service. The first auction of 218-219 MHz spectrum 
resulted in 170 entities winning licenses for 594 Metropolitan 
Statistical Area (MSA) 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, we 
established a small business size standard for a ``small business'' as 
an entity that, together with its affiliates and persons or entities 
that hold interests in such an entity and their affiliates, has average 
annual gross revenues not to exceed $15 million for the preceding three 
years. A ``very small business'' is defined as an entity that, together 
with its affiliates and persons or entities that hold interests in such 
an entity and its affiliates, has average annual gross revenues not to 
exceed $3 million for the preceding three years. We cannot estimate, 
however, the number of licenses that will be won by

[[Page 37314]]

entities qualifying as small or very small businesses under our rules 
in future auctions of 218-219 MHz spectrum.
    50. 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. 
Under this size standard, the great majority of firms can be considered 
small.
    51. 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.
b. Cable and OVS Operators
    52. Cable and Other Program Distribution. This category includes 
cable systems operators, closed circuit television services, direct 
broadcast satellite services, multipoint distribution systems, 
satellite master antenna systems, and subscription television services. 
The SBA has developed small business size standard for this census 
category, which includes all such companies generating $12.5 million or 
less in revenue annually. The Commission estimates that the majority of 
providers in this service category are small businesses that may be 
affected by the rules and policies adopted herein.
    53. Cable System Operators (Rate Regulation Standard). The 
Commission has developed its own small business size standard for cable 
system operators, for purposes of rate regulation. Under the 
Commission's rules, a ``small cable company'' is one serving fewer than 
400,000 subscribers nationwide. The Commission estimates that there 
currently are fewer than 1,439 small entity cable system operators that 
may be affected by the rules and policies adopted herein.
    54. Cable System Operators (Telecom Act Standard). The 
Communications Act of 1934, as amended, also contains a size standard 
for small cable system operators, 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 67,700,000 subscribers in the United States. Therefore, an 
operator serving fewer than 677,000 subscribers shall be deemed a small 
operator, if its annual revenues, when combined with the total annual 
revenues of all its affiliates, do not exceed $250 million in the 
aggregate. Based on available data, the Commission estimates that the 
number of cable operators serving 677,000 subscribers or fewer, totals 
1,450. The Commission neither requests nor collects information on 
whether cable system operators are affiliated with entities whose gross 
annual revenues exceed $250 million, and therefore are unable, at this 
time, to estimate more accurately the number of cable system operators 
that would qualify as small cable operators under the size standard 
contained in the Communications Act of 1934.
    55. Open Video Services. Open Video Service (OVS) systems provide 
subscription services. The SBA has created a small business size 
standard for Cable and Other Program Distribution. This standard 
provides that a small entity is one with $12.5 million or less in 
annual receipts. The Commission concludes that up to 24 OVS operators 
might qualify as small businesses that may be affected by the rules and 
policies adopted herein.
c. Internet Service Providers
    56. Internet Service Providers. The SBA has developed a small 
business size standard for Internet Service Providers (ISPs). ISPs 
``provide clients access to the Internet and generally provide related 
services such as Web hosting, Web page designing, and hardware or 
software consulting related to Internet connectivity.'' Under the SBA 
size standard, such a business is small if it has average annual 
receipts of $21 million or less. According to Census Bureau data for 
1997, there were 2,751 firms in this category that operated for the 
entire year. We estimate that the majority of these firms are small 
entities that may be affected by our action.
d. Other Internet-Related Entities
    57. Web Search Portals. Our action pertains to VoIP services, which 
could be provided by entities that provide other services such as 
email, online gaming, Web browsing, video conferencing, instant 
messaging, and other, similar IP-enabled services. The Commission has 
not adopted a size standard for entities that create or provide these 
types of services or applications. However, the census bureau has 
identified firms that ``operate Web sites that use a search engine to 
generate and maintain extensive databases of Internet addresses and 
content in an easily searchable format. Web search portals often 
provide additional Internet services, such as e-mail, connections to 
other Web sites, auctions, news, and other limited content, and serve 
as a home base for Internet users.'' The SBA has developed a small 
business size standard for this category; that size standard is $6 
million or less in average annual receipts. We estimate that the 
majority of these firms are small entities that may be affected by our 
action.
    58. Data Processing, Hosting, and Related Services. Entities in 
this category ``primarily * * * provid[e] infrastructure for hosting or 
data processing services.'' The SBA has developed a small business size 
standard for this category; that size standard is $21 million or less 
in average annual receipts. We estimate that the majority of these 
firms are small entities that may be affected by our action.
    59. All Other Information Services. ``This industry comprises 
establishments primarily engaged in providing other information 
services (except new syndicates and libraries and archives).'' Our 
action pertains to VoIP services, which could be provided by entities 
that provide other services such as email, online gaming, web browsing, 
video conferencing, instant messaging, and other, similar IP-enabled 
services. The SBA has developed a small business size standard for this 
category; that size standard is $6 million or less in average annual 
receipts. We estimate that the majority of these firms are small 
entities that may be affected by our action.
    60. Internet Publishing and Broadcasting. ``This industry comprises 
establishments engaged in publishing and/or broadcasting content on the 
Internet exclusively. These establishments do not provide traditional 
(non-Internet) versions of the content that they publish or 
broadcast.'' The SBA has developed a small business size standard for 
this new (2002) census category; that size standard is 500 or fewer 
employees. To assess the prevalence of small entities in this category, 
we will use 1997 Census Bureau data for a relevant, now-superseded 
census category, ``All Other Information Services.'' The SBA small

[[Page 37315]]

business size standard for that prior category was $6 million or less 
in average annual receipts. We estimate that the majority of the firms 
in this current category are small entities that may be affected by our 
action.
    61. Software Publishers. These companies may design, develop or 
publish software and may provide other support services to software 
purchasers, such as providing documentation or assisting in 
installation. The companies may also design software to meet the needs 
of specific users. The SBA has developed a small business size standard 
of $21 million or less in average annual receipts for all of the 
following pertinent categories: Software Publishers, Custom Computer 
Programming Services, and Other Computer Related Services. We estimate 
that the majority of the firms in each of these three categories are 
small entities that may be affected by our action.
    62. Equipment Manufacturers. The equipment manufacturers described 
in this section are merely indirectly affected by our current action, 
and therefore are not formally a part of this IRFA analysis. We have 
included them, however, to broaden the record in this proceeding and to 
alert them to our decisions.
    63. Wireless Communications Equipment Manufacturers. The SBA has 
established a small business size standard for Radio and Television 
Broadcasting and Wireless Communications Equipment Manufacturing. 
Examples of products in this category include ``transmitting and 
receiving antennas, cable television equipment, GPS equipment, pagers, 
cellular phones, mobile communications equipment, and radio and 
television studio and broadcasting equipment'' and may include other 
devices that transmit and receive IP-enabled services, such as personal 
digital assistants (PDAs). Under the SBA size standard, firms are 
considered small if they have 750 or fewer employees. We estimate that 
the majority of wireless communications equipment manufacturers are 
small entities that may be affected by our action.
    64. Telephone Apparatus Manufacturing. This category ``comprises 
establishments primarily engaged primarily in manufacturing wire 
telephone and data communications equipment.'' Examples of pertinent 
products are ``central office switching equipment, cordless telephones 
(except cellular), PBX equipment, telephones, telephone answering 
machines, and data communications equipment, such as bridges, routers, 
and gateways.'' The SBA has developed a small business size standard 
for this category of manufacturing; that size standard is 1,000 or 
fewer employees. We estimate that the majority of these establishments 
are small entities that may be affected by our action.
    65. Electronic Computer Manufacturing. This category ``comprises 
establishments primarily engaged in manufacturing and/or assembling 
electronic computers, such as mainframes, personal computers, 
workstations, laptops, and computer servers.'' The SBA has developed a 
small business size standard for this category of manufacturing; that 
size standard is 1,000 or fewer employees. We estimate that the 
majority of these establishments are small entities that may be 
affected by our action.
    66. Computer Terminal Manufacturing. ``Computer terminals are 
input/output devices that connect with a central computer for 
processing.'' The SBA has developed a small business size standard for 
this category of manufacturing; that size standard is 1,000 or fewer 
employees. We estimate that the majority or all of these establishments 
are small entities that may be affected by our action.
    67. Other Computer Peripheral Equipment Manufacturing. Examples of 
peripheral equipment in this category include keyboards, mouse devices, 
monitors, and scanners. The SBA has developed a small business size 
standard for this category of manufacturing; that size standard is 
1,000 or fewer employees. We estimate that the majority of these 
establishments are small entities that may be affected by our action.
    68. Fiber Optic Cable Manufacturing. These establishments 
manufacture ``insulated fiber-optic cable from purchased fiber-optic 
strand.'' The SBA has developed a small business size standard for this 
category of manufacturing; that size standard is 1,000 or fewer 
employees. We estimate that the majority of these establishments are 
small entities that may be affected by our action.
    69. Other Communication and Energy Wire Manufacturing. These 
establishments manufacture ``insulated wire and cable of nonferrous 
metals from purchased wire.'' The SBA has developed a small business 
size standard for this category of manufacturing; that size standard is 
1,000 or fewer employees. We estimate that the majority or all of these 
establishments are small entities that may be affected by our action.
    70. Audio and Video Equipment Manufacturing. These establishments 
manufacture ``electronic audio and video equipment for home 
entertainment, motor vehicle, public address and musical instrument 
amplifications.'' The SBA has developed a small business size standard 
for this category of manufacturing; that size standard is 750 or fewer 
employees. We estimate that the majority of these establishments are 
small entities that may be affected by our action.
    71. Electron Tube Manufacturing. These establishments are 
``primarily engaged in manufacturing electron tubes and parts (except 
glass blanks).'' The SBA has developed a small business size standard 
for this category of manufacturing; that size standard is 750 or fewer 
employees. We estimate that the majority of these establishments are 
small entities that may be affected by our action.
    72. Bare Printed Circuit Board Manufacturing. These establishments 
are ``primarily engaged in manufacturing bare (i.e., rigid or flexible) 
printed circuit boards without mounted electronic components.'' The SBA 
has developed a small business size standard for this category of 
manufacturing; that size standard is 500 or fewer employees. We 
estimate that the majority of these establishments are small entities 
that may be affected by our action.
    73. Semiconductor and Related Device Manufacturing. These 
establishments manufacture ``computer storage devices that allow the 
storage and retrieval of data from a phase change, magnetic, optical, 
or magnetic/optical media.'' The SBA has developed a small business 
size standard for this category of manufacturing; that size standard is 
500 or fewer employees. According to Census Bureau data for 1997, there 
were 987 establishments in this category that had employment of under 
500.
    74. Electronic Capacitor Manufacturing. These establishments 
manufacture ``electronic fixed and variable capacitors and 
condensers.'' The SBA has developed a small business size standard for 
this category of manufacturing; that size standard is 500 or fewer 
employees. According to Census Bureau data for 1997, there were 128 
establishments in this category that operated for the entire year. Of 
these, 121 had employment of under 500, and four establishments had 
employment of 500 to 999.
    75. Electronic Resistor Manufacturing. These establishments 
manufacture ``electronic resistors, such as fixed and

[[Page 37316]]

variable resistors, resistor networks, thermistors, and varistors.'' 
The SBA has developed a small business size standard for this category 
of manufacturing; that size standard is 500 or fewer employees. 
According to Census Bureau data for 1997, there were 118 establishments 
in this category that operated for the entire year. Of these, 113 had 
employment of under 500, and 5 establishments had employment of 500 to 
999.
    76. Electronic Coil, Transformer, and Other Inductor Manufacturing. 
These establishments manufacture ``electronic inductors, such as coils 
and transformers.'' The SBA has developed a small business size 
standard for this category of manufacturing; that size standard is 500 
or fewer employees. According to Census Bureau data for 1997, there 
were 448 establishments in this category that operated for the entire 
year. Of these, 446 had employment of under 500, and two establishments 
had employment of 500 to 999.
    77. Electronic Connector Manufacturing. These establishments 
manufacture ``electronic connectors, such as coaxial, cylindrical, rack 
and panel, pin and sleeve, printed circuit and fiber optic.'' The SBA 
has developed a small business size standard for this category of 
manufacturing; that size standard is 500 or fewer employees. According 
to Census Bureau data for 1997, there were 347 establishments in this 
category that operated for the entire year. Of these, 332 had 
employment of under 500, and 12 establishments had employment of 500 to 
999.
    78. Printed Circuit Assembly (Electronic Assembly) Manufacturing. 
These are establishments ``primarily engaged in loading components onto 
printed circuit boards or who manufacture and ship loaded printed 
circuit boards.'' The SBA has developed a small business size standard 
for this category of manufacturing; that size standard is 500 or fewer 
employees. According to Census Bureau data for 1997, there were 714 
establishments in this category that operated for the entire year. Of 
these, 673 had employment of under 500, and 24 establishments had 
employment of 500 to 999.
    79. Other Electronic Component Manufacturing. These are 
establishments ``primarily engaged in loading components onto printed 
circuit boards or who manufacture and ship loaded printed circuit 
boards.'' The SBA has developed a small business size standard for this 
category of manufacturing; that size standard is 500 or fewer 
employees. According to Census Bureau data for 1997, there were 1,835 
establishments in this category that operated for the entire year. Of 
these, 1,814 had employment of under 500, and 18 establishments had 
employment of 500 to 999.
    80. Computer Storage Device Manufacturing. These establishments 
manufacture ``computer storage devices that allow the storage and 
retrieval of data from a phase change, magnetic, optical, or magnetic/
optical media.'' The SBA has developed a small business size standard 
for this category of manufacturing; that size standard is 1,000 or 
fewer employees. According to Census Bureau data for 1997, there were 
209 establishments in this category that operated for the entire year. 
Of these, 197 had employment of under 500, and eight establishments had 
employment of 500 to 999.

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

    81. The NPRM describes a future requirement the Commission intends 
to adopt for an advanced E911 solution for interconnected VoIP that 
must include a method for determining a user's location without 
assistance from the user and that there will be firm implementation 
deadlines for that solution. The NPRM also seeks comment on what 
additional steps the Commission should take to ensure that providers of 
VoIP services provide ubiquitous and reliable E911 service in light of 
the technological barriers that apply to VoIP E911 services. For 
instance, the Commission seeks comment on how it can facilitate the 
development of techniques for automatically identifying the geographic 
location of users of VoIP services, and notes that a number of possible 
methods have been proposed to automatically identify the location of a 
VoIP user, including gathering location information through the use of: 
An access jack inventory; a wireless access point inventory; access 
point mapping and triangulation; HDTV signal triangulation; and various 
GPS-based solutions. The Commission specifically asks whether it should 
require all terminal adapters or other equipment used in the provision 
of interconnected VoIP service sold as of June 1, 2006 to be capable of 
providing location information automatically, whether embedded in other 
equipment or sold to customers as a separate device. The NPRM also 
seeks comment on whether the Commission should expand the scope of its 
rules, which are limited to providers of interconnected VoIP services. 
The Commission tentatively concludes that a provider of a VoIP service 
offering that permits users to receive calls that originate on the PSTN 
and separately makes available a different offering that permits users 
to terminate calls generally to the PSTN should be subject to the rules 
if a user can combine those separate offerings or can use them 
simultaneously or in immediate succession.
    82. The Commission also seeks comment on whether it should adopt 
additional regulations to ensure that interconnected VoIP service 
customers obtain the required level of E911 services. Among other 
things, the Commission asks whether it should adopt E911 performance 
standards, require system redundancy, and require additional reporting 
requirements. The NPRM also seeks comment on whether the Commission 
should impose additional or more restrictive customer notification 
requirements relating to E911 on VoIP providers, and on the sufficiency 
of our customer acknowledgement requirements. It also asks whether the 
Commission should adopt any customer privacy protections related to 
provision of E911 service by interconnected VoIP service providers, 
perhaps similar to the privacy requirements that apply to wireline and 
wireless telecommunications carriers. In addition, the NPRM seeks 
comment on whether there are any steps the Commission should take to 
ensure that people with disabilities who desire to use VoIP services 
obtain access to E911 services, such as by imposing on VoIP 
technologies the same disability access requirements as traditional 
telephony facilities.
    83. Finally, the Commission also asks what role states can and 
should play to help implement the E911 rules. For instance, the 
Commission asks whether state and local governments should play a role 
similar to the roles they play in implementing the Commission's 
wireless E911 rules. The NPRM also requests comment on whether the 
Commission should take any action to facilitate the states' ability to 
collect 911 fees from interconnected VoIP providers, either directly or 
indirectly.

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

    84. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include (among others) 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

[[Page 37317]]

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.
    85. The NPRM specifically seeks comment on whether the Commission 
should expand the scope and requirements of the rules, recognizing that 
such an expansion may not be appropriate with regard to all VoIP 
service providers. With one exception, the NPRM does not adopt any 
tentative conclusions regarding what specific regulations would apply 
to any entity, including small entities. We hereby specifically seek 
comment on the effect the various proposals described in the NPRM, and 
summarized above, will have on small entities, and on what effect 
alternative rules would have on those entities. How can the Commission 
achieve its goal of ensuring that all users of VoIP services ultimately 
covered by the Commission's E911 rules are able to access ubiquitous 
and reliable E911 service while also imposing the least necessary 
burdens on small entities? What specific steps could the Commission 
take in this regard?

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

    86. None.

Ordering Clauses

    87. It is ordered that pursuant to the authority contained in 
sections 1, 4(i), 4(j), 251(e), and 303(r) of the Communications Act of 
1934, as amended, 47 U.S.C. 151, 154(i)-(j), 251(e), 303(r), the Notice 
of Proposed Rulemaking in WC Docket No. 05-196 is adopted.
    88. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Notice of Proposed Rulemaking, including the Initial 
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of 
the Small Business Administration.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 05-12827 Filed 6-28-05; 8:45 am]
BILLING CODE 6712-01-P