[Federal Register Volume 72, Number 168 (Thursday, August 30, 2007)]
[Proposed Rules]
[Pages 50085-50095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-17123]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 20

[WT Docket No. 05-265, FCC No. 07-143]


Reexamination of Roaming Obligations of Commercial Mobile Radio 
Service Providers

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this Further Notice of Proposed Rulemaking (FNPRM), the 
Federal Communications Commission (FCC) seeks comment on whether it 
should extend the automatic roaming obligation of commercial mobile 
radio service (CMRS) carriers to non-interconnected services or 
features, including services that have been classified as information 
services, such as wireless broadband Internet access service, or other 
non-CMRS services. The FCC further seeks comment on the implications of 
extending the automatic roaming obligation in this manner.

DATES: Comments due on or before October 29, 2007 and reply comments 
are due on or before November 28, 2007.

ADDRESSES: You may submit comments, identified by WT Docket No. 05-265, 
by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web Site: http://www.fcc.gov/cgb/ecfs/. Follow the instructions for submitting comments.
     E-mail: Include the docket number in the subject line of 
the message.
     People With Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by e-mail: [email protected] or phone: 202-418-
0530 or TTY: 202-418-0432.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Christina Clearwater at (202) 418-
1893, [email protected], Spectrum and Competition Policy 
Division, Wireless Telecommunications Bureau; Won Kim at (202) 418-
1368, [email protected], Spectrum and Competition Policy Division, 
Wireless Telecommunications Bureau.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Further Notice of Proposed Rulemaking (FNPRM), WT Docket No. 05-265, 
FCC No. 07-143, adopted August 7, 2007 and released August 16, 2007. 
The full text of the FNPRM is available for public inspection on the 
Commission's Internet site at http://www.fcc.gov. It is also available 
for inspection and copying during regular business hours in the FCC 
Reference Center (Room CY-A257), 445 12th Street, SW., Washington, DC 
20554. The full text of this document also may be purchased from the 
Commission's duplication contractor, Best Copy and Printing Inc., 
Portals II, 445 12th St., SW., Room CY-B402, Washington, DC 20554; 
telephone (202) 488-5300; fax (202) 488-5563; e-mail [email protected].

Initial Paperwork Reduction Act of 1995 Analysis

    This document does not contain an information collection subject to 
the Paperwork Reduction Act of 1995, and therefore does not contain any 
new or modified ``information collection burden for small business 
concerns with fewer than 25 employees,'' pursuant to the Small Business 
Paperwork Relief Act of 2002.

Synopsis

    1. In the FNPRM, the FCC seeks comment on whether it should extend 
the automatic roaming obligation of CRMS carriers to non-interconnected 
services or features, including services that have been classified as 
information services, such as wireless broadband Internet access 
service, or other non-interconnected non-CMRS services offered by CMRS 
carriers, and on the legal and policy basis for doing so. The FCC 
further seeks comment on the implications of extending the automatic 
roaming obligation in this manner.
    2. To what extent, if any, would requiring roaming access to non-
interconnected services and features undermine carriers' incentive to 
innovate or invest in mobile wireless broadband network facilities? 
Would the potential for undermining innovation be mitigated by 
conditioning roaming access to non-interconnected services and 
features, as the Commission has, for example, with push-to-talk and 
SMS? Namely, should the Commission require that the requesting carrier 
must offer the requested service or feature to its subscribers on its 
own home network; that roaming must be technically feasible; and any 
changes to the would-be host carrier's network that are necessary to 
accommodate roaming requests extending to these services and features 
must be economically reasonable?
    3. If the Commission were to extend automatic roaming obligations 
to non-interconnected services and features, are there any special 
issues (technical, economic, or otherwise) associated with roaming data 
networks that may not exist when roaming among CMRS carriers' 
interconnected voice networks? For example, are there any issues 
regarding network capacity, network integrity, or network security? The 
Commission seeks comment on the effect that automatic roaming would 
have on the capacity of data networks and the ability of carriers to 
offer full access to their own customers. The Commission would be 
concerned if requiring a carrier to offer roaming service on its data 
network to the customers of other carriers resulted in the carrier 
facing capacity constraints that adversely affect its own customers. 
The Commission therefore asks whether a carrier should have the right 
to limit access to its network by roamers, and what parameters should 
be considered as justification for such limits. The Commission invites 
commenters to suggest specific standards for determining when the 
requirement should or should not apply.
    4. If the Commission were to extend automatic roaming obligations 
to non-interconnected services and features, should all such services 
and features be included? Are there any public interest reasons to 
treat narrowband and broadband data services differently in the context 
of automatic roaming? In the Wireless Broadband Classification 
Order,\1\ the Commission determined that mobile wireless broadband 
Internet access service is an information service, and that it is not 
CMRS. If the

[[Page 50086]]

Commission were to impose an automatic roaming obligation on mobile 
wireless broadband Internet access services, how could it do so in 
accordance with the determinations in that order? For example, could 
the Commission base the requirement on Title I ancillary jurisdiction, 
or on the Title III regulation of radio services? Or should the 
Commission restrict the automatic roaming mandate only to non-
interconnected data services that are not classified as information 
services? The Commission notes that while a few CMRS providers have 
requested that the Commission require automatic roaming for all 
services, including non-interconnected data services provided over 
enhanced digital networks, other CMRS providers, including several 
small carriers, are against imposing automatic roaming rules for 
enhanced data services, arguing that forced roaming would thwart market 
forces by benefiting only those providers that have opted to invest 
less on their systems. Given these contradictory positions, what is the 
appropriate balance to be drawn between providing seamless service 
accessibility to end-users, and allowing service providers to gain 
competitive advantages from their investments and innovations?
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    \1\ See generally, Appropriate Regulatory Treatment for 
Broadband Access to the Internet Over Wireless Networks, Declaratory 
Ruling, 22 FCC Rcd 5901 (2007).
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Ex Parte Presentations

    5. The rulemaking shall be treated as a ``permit-but-disclose'' 
proceeding in accordance with the Commission's ex parte rules.\2\ 
Persons making oral ex parte presentations are reminded that memoranda 
summarizing the presentations must contain summaries of the substance 
of the presentations and not merely a listing of the subjects 
discussed. More than a one or two sentence description of the views and 
arguments presented generally is required.\3\ Other requirements 
pertaining to oral and written presentations are set forth in Section 
1.1206(b) of the Commission's rules.\4\
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    \2\ 47 CFR 1.200 et seq.
    \3\ See 47 CFR 1.1206(b)(2).
    \4\ 47 CFR 1.1206(b).
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Comment Filing Procedures

    6. Pursuant to Sec. Sec.  1.415 and 1.419 of the Commission's 
rules,\5\ interested parties may file comments on or before 60days 
after publication of the FNPRM in the Federal Register and reply 
comments regarding the FNPRM may be filed on or before 90 days after 
publication of the FNPRM in the Federal Register. All filings related 
to this FNPRM should refer to WT Docket No. 05-265. 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.\6\
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    \5\ 47 CFR 1.415, 1.419.
    \6\ See Electronic Filing of Documents in Rulemaking 
Proceedings, 63 FR 24121 (1998).
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     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 website for submitting 
comments.
     ECFS filers must transmit one electronic copy of the 
comments for WT Docket No. 05-265. In completing the transmittal 
screen, filers should include their full name, U.S. Postal Service 
mailing address, and WT Docket No. 05-265. 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. 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 the 
Commission continues to experience delays in receiving U.S. Postal 
Service mail). 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.
     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.
    7. Parties should send a copy of their filings to: Christina 
Clearwater, Wireless Telecommunications Bureau, 445 12th Street, SW., 
Washington, DC 20554, or by e-mail to [email protected] and 
Won Kim, Wireless Telecommunications Bureau, 445 12th Street, SW., 
Washington, DC 20554, or by e-mail to [email protected]. Parties shall 
also serve one copy with the Commission's copy contractor, Best Copy 
and Printing, Inc. (BCPI), Portals II, Room CY-B402, 445 12th Street, 
SW., Washington, DC 20554, (202) 488-5300, or via e-mail to 
[email protected].
    8. Documents in WT Docket No. 05-265 will be available for public 
inspection and copying during business hours at the FCC Reference 
Information Center, Portals II, Room CY-A257, 445 12th Street, SW., 
Washington, DC 20554. The documents may also be purchased from BCPI, 
telephone (202) 488-5300, facsimile (202) 488-5563, TTY (202) 488-5562, 
e-mail [email protected].
    9. To request materials in accessible formats for people with 
disabilities (Braille, large print, electronic files, audio format), 
send an e-mail to [email protected] or call the Consumer & Governmental 
Affairs Bureau at 202-418-0530 (voice), 202-418-0432 (TTY). Contact the 
FCC to request reasonable accommodations for filing comments 
(accessible format documents, sign language interpreters, CARTS, etc.) 
by e-mail: [email protected]; phone: 202-418-0530 (voice), 202-418-0432 
(TTY).

Initial Regulatory Flexibility Analysis

    10. As required by the Regulatory Flexibility Act of 1980, as 
amended (the ``RFA''),\7\ the Commission has prepared this Initial 
Regulatory Flexibility Analysis (``IRFA'') of the possible significant 
economic impact of the policies and rules proposed in the Further 
Notice of Proposed Rulemaking (``FNPRM'') on a substantial number of 
small entities. 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 FNPRM provided in the item. The 
Commission will send a copy of the FNPRM, including this IRFA, to the 
Chief Counsel for Advocacy of the Small Business Administration 
(``SBA'').\8\ In addition, the FNPRM and IRFA (or summaries thereof) 
will be published in the Federal Register.\9\
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    \7\ The RFA, see 5 U.S.C. 601-612, has been amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996 (``SBREFA''), 
Pub. L. 104-121, Title II, 110 Stat. 857 (1996).
    \8\ See 5 U.S.C. 603(a).
    \9\ See 5 U.S.C. 603(a).
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A. Need for, and Objectives of, the Proposed Rules

    11. Building on the decisions made in the Report and Order, the 
FNPRM

[[Page 50087]]

encompasses issues concerning the applicability of the automatic 
roaming obligation for all wireless providers. In the Report and Order, 
the Commission clarifies that the automatic roaming is a common carrier 
obligation and adopts an automatic roaming rule that is applicable to 
services offered by CMRS carriers that are real-time, two-way switched 
voice or data services that are interconnected with the public switched 
network, and to push-to-talk and text messaging service. Recognizing 
wireless subscribers' increasing reliance on mobile telephony services, 
especially the growing demand of data services by consumers, the FNPRM 
seeks comment on whether the Commission should extend the applicability 
of the automatic roaming requirements to non-interconnected services or 
features, including services that have been classified as information 
services, such as wireless broadband Internet access service, or other 
non-CMRS services. The FNPRM further seeks comment on the implications 
of extending the automatic roaming obligation in this manner. The 
Commission's primary objective in this proceeding is to facilitate 
seamless wireless communications for consumers, even when they are 
outside of the coverage area of their own service providers.
    12. In the FNPRM, the Commission notes that while a few CMRS 
providers have requested that the Commission require automatic roaming 
for all services, including non-interconnected data services provided 
over enhanced digital networks,\10\ other CMRS providers, including 
several small carriers, are against imposing automatic roaming rules 
for enhanced data services, arguing that forced roaming would thwart 
market forces by benefiting only those providers that have opted to 
invest less on their systems.\11\ Given these contradictory positions, 
the FNPRM seeks comments on what is the appropriate balance to be drawn 
between providing seamless service accessibility to end-users, and 
allowing service providers to gain competitive advantages from their 
investments and innovations.
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    \10\ See ACS Comments at 6; MetroPCS Comments at 25 n.58.
    \11\ See e.g., EDGE Reply Comments at 1, 8-9; see also, NDNC 
Comments at 3 (arguing against automating roaming rules because they 
create a disincentive for companies to further develop their 
networks).
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B. Legal Basis

    13. The authority for the actions taken in this FNPRM is contained 
in Sections 1, 4(i), 201, 202, 251(a), 253, 303(r), and 332(c)(1)(B) of 
the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 201, 
202, 251(a), 253, 303(r), and 332(c)(1)(B).

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

    14. The RFA directs agencies to provide a description of, and where 
feasible, an estimate of, the number of small entities that may be 
affected by the proposed rules, if adopted.\12\ The RFA generally 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' \13\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\14\ 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).\15\
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    \12\ 5 U.S.C. 604(a)(3).
    \13\ 5 U.S.C. 601(6).
    \14\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small-business concern'' in the Small Business Act, 15 U.S.C. 
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a 
small business applies ``unless an agency, after consultation with 
the Office of Advocacy of the Small Business Administration and 
after opportunity for public comment, establishes one or more 
definitions of such term which are appropriate to the activities of 
the agency and publishes such definition(s) in the Federal 
Register.''
    \15\ 15 U.S.C. 632.
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    15. In the following paragraphs, the Commission further describes 
and estimates the number of small entity licensees that may be affected 
by the rules the Commission adopts in this Report and Order. The 
Commission's finding that automatic roaming is a common carrier service 
subject to protections outlined in sections 201, 202 and 208 of the Act 
affects all CMRS carriers that provide real-time, two-way switched 
voice or data service that are interconnected with the public switched 
network and utilize an in-network switching facility that enables the 
provider to reuse frequencies and accomplish seamless hand-offs of 
subscriber calls. Such carriers are obligated to provide automatic 
roaming. As a common carrier obligation, the automatic roaming rule 
does not extend to non-interconnected services/features or services 
that are classified as information services or to services that are not 
CMRS.
    16. Since this Report and Order applies to multiple services, this 
FRFA analyzes the number of small entities affected on a service-by-
service basis. When identifying small entities that could be affected 
by the Commission's new rules, this FRFA provides information that 
describes auction results, including the number of small entities that 
were winning bidders. However, the number of winning bidders that 
qualify as small businesses at the close of an auction does not 
necessarily reflect the total number of small entities currently in a 
particular service. The Commission does not generally require that 
licensees later provide business size information, except in the 
context of an assignment or a transfer of control application that 
involves unjust enrichment issues.
    17. Wireless Service Providers. The SBA has developed a small 
business size standard for wireless firms within the two broad economic 
census categories of ``Paging'' \16\ and ``Cellular and Other Wireless 
Telecommunications.'' \17\ Under both categories, the SBA deems a 
wireless business to be small if it has 1,500 or fewer employees. For 
the census category of Paging, Census Bureau data for 2002 show that 
there were 807 firms in this category that operated for the entire 
year.\18\ Of this total, 804 firms had employment of 999 or fewer 
employees, and three firms had employment of 1,000 employees or 
more.\19\ Thus, under this category and associated small business size 
standard, the majority of firms can be considered small. For the census 
category of Cellular and Other Wireless Telecommunications, Census 
Bureau data for 2002 show that there were 1,397 firms in this category 
that operated for the entire year.\20\ Of this total, 1,378 firms had 
employment of 999 or fewer employees, and 19 firms had employment of 
1,000 employees or more.\21\ Thus, under this second category and size 
standard, the majority of firms can, again, be considered small.
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    \16\ 13 CFR 121.201, NAICS code 517211.
    \17\ 13 CFR 121.201, NAICS code 517212.
    \18\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 5, NAICS code 517211 (issued Nov. 2005).
    \19\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is for firms with ``1000 
employees or more.''
    \20\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 5, NAICS code 517212 (issued Nov. 2005).
    \21\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is for firms with ``1000 
employees or more.''
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    18. Cellular Licensees. The SBA has developed a small business size 
standard for small businesses in the category ``Cellular and Other 
Wireless

[[Page 50088]]

Telecommunications.'' \22\ Under that SBA category, a business is small 
if it has 1,500 or fewer employees.\23\ For the census category of 
``Cellular and Other Wireless Telecommunications,'' Census Bureau data 
for 2002 show that there were 1,397 firms in this category that 
operated for the entire year.\24\ Of this total, 1,378 firms had 
employment of 999 or fewer employees, and 19 firms had employment of 
1,000 employees or more.\25\ Thus, under this category and size 
standard, the majority of firms can be considered small.
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    \22\ 13 CFR 121.201, North American Industry Classification 
System (NAICS) code 517212.
    \23\ Id.
    \24\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization,'' Table 5, NAICS code 517212 (issued Nov. 2005).
    \25\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is for firms with ``1000 
employees or more.''
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    19. 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 has created a small business 
size standard for Blocks C and F as an entity that has average gross 
revenues of less than $40 million in the three previous calendar 
years.\26\ For Block F, an additional small business size standard 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.\27\ These 
small business size standards, in the context of broadband PCS 
auctions, have been approved by the SBA.\28\ 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 C Block 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.\29\ On March 23, 
1999, the Commission reauctioned 155 C, D, E, and F Block licenses; 
there were 113 small business winning bidders.\30\ On January 26, 2001, 
the Commission completed the auction of 422 C and F PCS licenses in 
Auction 35.\31\ 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.
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    \26\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, 11 FCC Rcd 7824, 7850-
7852 paras. 57-60 (1996); see also 47 CFR 24.720(b).
    \27\ See Amendment of Parts 20 and 24 of the Commission's 
Rules--Broadband PCS Competitive Bidding and the Commercial Mobile 
Radio Service Spectrum Cap, Report and Order, 11 FCC Rcd 7824, 7852 
para. 60.
    \28\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, Federal 
Communications Commission, from Aida Alvarez, Administrator, Small 
Business Administration, dated December 2, 1998.
    \29\ FCC News, ``Broadband PCS, D, E and F Block Auction 
Closes,'' No. 71744 (rel. January 14, 1997).
    \30\ See ``C, D, E, and F Block Broadband PCS Auction Closes,'' 
public notice, 14 FCC Rcd 6688 (WTB 1999).
    \31\ See ``C and F Block Broadband PCS Auction Closes; Winning 
Bidders Announced,'' public notice, 16 FCC Rcd 2339 (2001).
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    20. Narrowband Personal Communications Service. The Commission held 
an auction for Narrowband Personal Communications Service (PCS) 
licenses that commenced on July 25, 1994, and closed on July 29, 1994. 
A second commenced on October 26, 1994 and closed on November 8, 1994. 
For purposes of the first two Narrowband PCS auctions, ``small 
businesses'' were entities with average gross revenues for the prior 
three calendar years of $40 million or less.\32\ Through these 
auctions, the Commission awarded a total of forty-one licenses, 11 of 
which were obtained by four small businesses.\33\ To ensure meaningful 
participation by small business entities in future auctions, the 
Commission adopted a two-tiered small business size standard in the 
Narrowband PCS Second Report and Order.\34\ 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.\35\ 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.\36\ The SBA 
has approved these small business size standards.\37\ A third auction 
commenced on October 3, 2001 and closed on October 16, 2001. Here, five 
bidders won 317 (MTA and nationwide) licenses.\38\ Three of these 
claimed status as a small or very small entity and won 311 licenses.
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    \32\ Implementation of Section 309(j) of the Communications 
Act--Competitive Bidding Narrowband PCS, Third Memorandum Opinion 
and Order and Further Notice of Proposed Rulemaking, 10 FCC Rcd 175, 
196 para. 46 (1994).
    \33\ See ``Announcing the High Bidders in the Auction of ten 
Nationwide Narrowband PCS Licenses, Winning Bids Total 
$617,006,674,'' public notice, PNWL 94-004 (rel. Aug. 2, 1994); 
``Announcing the High Bidders in the Auction of 30 Regional 
Narrowband PCS Licenses; Winning Bids Total $490,901,787,'' public 
notice, PNWL 94-27 (rel. Nov. 9, 1994).
    \34\ Amendment of the Commission's Rules to Establish New 
Personal Communications Services, Narrowband PCS, Second Report and 
Order and Second Further Notice of Proposed Rule Making, 15 FCC Rcd 
10456, 10476 para. 40 (2000).
    \35\ Id.
    \36\ Id.
    \37\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, Federal 
Communications Commission, from Aida Alvarez, Administrator, Small 
Business Administration, dated December 2, 1998.
    \38\ See ``Narrowband PCS Auction Closes,'' public notice, 16 
FCC Rcd 18663 (WTB 2001).
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    21. Specialized Mobile Radio. The Commission awards ``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.\39\ The Commission awards ``very small entity'' bidding 
credits to firms that had revenues of no more than $3 million in each 
of the three previous calendar years.\40\ The SBA has approved these 
small business size standards for the 900 MHz Service.\41\ The 
Commission has held auctions for geographic area licenses in the 800 
MHz and 900 MHz bands. The 900 MHz SMR auction began on December 5, 
1995, and closed on April 15, 1996. Sixty bidders claiming that they 
qualified as small businesses under the $15 million size standard won 
263 geographic area licenses in the 900 MHz SMR band. The 800 MHz SMR 
auction for the upper 200 channels began on October 28, 1997, and was 
completed on December 8, 1997. Ten bidders claiming that they qualified 
as small businesses under the $15 million size standard won 38 
geographic area licenses for the upper 200 channels in the 800 MHz SMR 
band.\42\ A second auction for the 800 MHz band was held on January 10, 
2002 and closed on January 17, 2002 and included 23 BEA licenses. One 
bidder claiming small business status won five licenses.\43\
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    \39\ 47 CFR 90.814(b)(1).
    \40\ Id.
    \41\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
August 10, 1999.
    \42\ See ``Correction to public notice DA 96-586 `FCC Announces 
Winning Bidders in the Auction of 1020 Licenses to Provide 900 MHz 
SMR in Major Trading Areas,' '' public notice, 18 FCC Rcd 18367 (WTB 
1996).
    \43\ See ``Multi-Radio Service Auction Closes,'' public notice, 
17 FCC Rcd 1446 (WTB 2002).
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    22. The auction of the 1,050 800 MHz SMR geographic area licenses 
for the

[[Page 50089]]

General Category channels began on August 16, 2000, and was completed 
on September 1, 2000. Eleven bidders won 108 geographic area licenses 
for the General Category channels in the 800 MHz SMR band qualified as 
small businesses under the $15 million size standard. In an auction 
completed on December 5, 2000, a total of 2,800 Economic Area licenses 
in the lower 80 channels of the 800 MHz SMR service were sold. Of the 
22 winning bidders, 19 claimed ``small business'' status and won 129 
licenses. Thus, combining all three auctions, 40 winning bidders for 
geographic licenses in the 800 MHz SMR band claimed status as small 
business.
    23. In addition, there are numerous incumbent site-by-site SMR 
licensees and licensees with extended implementation authorizations in 
the 800 and 900 MHz bands. The Commission does not know how many firms 
provide 800 MHz or 900 MHz geographic area SMR pursuant to extended 
implementation authorizations, nor how many of these providers have 
annual revenues of no more than $3 million or $15 million (the special 
small business size standards), or have no more than 1,500 employees 
(the generic SBA standard for wireless entities, discussed supra). One 
firm has over $15 million in revenues. The Commission assumes, for 
purposes of this analysis, that all of the remaining existing extended 
implementation authorizations are held by small entities.
    24. Advanced Wireless Services. In the AWS-1 Report and Order, the 
Commission adopted rules that affect applicants who wish to provide 
service in the 1710-1755 MHz and 2110-2155 MHz bands.\44\ The AWS-1 
Report and Order defines a ``small business'' as an entity with average 
annual gross revenues for the preceding three years not exceeding $40 
million, and a ``very small business'' as an entity with average annual 
gross revenues for the preceding three years not exceeding $15 million. 
The AWS-1 Report and Order also provides small businesses with a 
bidding credit of 15 percent and very small businesses with a bidding 
credit of 25 percent.
---------------------------------------------------------------------------

    \44\ Service Rules for Advanced Wireless Services in the 1.7 GHz 
and 2.1 GHz Bands, WT Docket No. 02-353, Report and Order, 18 FCC 
Rcd 25162 (2003) (AWS-1 Report and Order).
---------------------------------------------------------------------------

    25. Rural Radiotelephone Service. The Commission uses the SBA small 
business size standard applicable to cellular and other wireless 
telecommunication companies, i.e., an entity employing no more than 
1,500 persons.\45\ 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.
---------------------------------------------------------------------------

    \45\ 13 CFR 121.201, NAICS code 517212.
---------------------------------------------------------------------------

    26. Wireless Communications Services. This service can be used for 
fixed, mobile, radiolocation, and digital audio broadcasting satellite 
uses in the 2305-2320 MHz and 2345-2360 MHz bands. The Commission 
defined ``small business'' for the wireless communications services 
(WCS) auction as an entity with average gross revenues of $40 million 
for each of the three preceding years, and a ``very small business'' as 
an entity with average gross revenues of $15 million for each of the 
three preceding years.\46\ The SBA has approved these definitions.\47\ 
The Commission auctioned geographic area licenses in the WCS service. 
In the auction, which commenced on April 15, 1997 and closed on April 
25, 1997, there were seven bidders that won 31 licenses that qualified 
as very small business entities, and one bidder that won one license 
that qualified as a small business entity.
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    \46\ Amendment of the Commission's Rules to Establish Part 27, 
the Wireless Communications Service (WCS), Report and Order, 12 FCC 
Rcd 10785, 10879 para. 194 (1997).
    \47\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, Federal 
Communications Commission, from Aida Alvarez, Administrator, Small 
Business Administration, dated December 2, 1998.
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    27. 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 
definition of small entities specifically applicable to such incumbent 
220 MHz Phase I licensees. To estimate the number of such licensees 
that are small businesses, the Commission applies 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.\48\ For the census category of ``Cellular and Other Wireless 
Telecommunications,'' Census Bureau data for 2002 show that there were 
1,397 firms in this category that operated for the entire year.\49\ Of 
this total, 1,378 firms had employment of 999 or fewer employees, and 
19 firms had employment of 1,000 employees or more.\50\ Thus, under 
this category and size standard, the majority of firms can be 
considered small.
---------------------------------------------------------------------------

    \48\ 13 CFR 121.201, NAICS code 517212.
    \49\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 5, NAICS code 517212 (issued Nov. 2005).
    \50\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is for firms with ``1000 
employees or more.''
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    28. 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 
subject to spectrum auctions. In the 220 MHz Third Report and Order, 
the Commission adopted a small business size standard for defining 
``small'' and ``very small'' businesses for purposes of determining 
their eligibility for special provisions such as bidding credits and 
installment payments.\51\ This small business 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.\52\ A ``very small business'' is 
defined as 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.\53\ The SBA has approved these small 
size standards.\54\ Auctions of Phase II licenses commenced on 
September 15, 1998, and closed on October 22, 1998.\55\ 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.\56\ Thirty-nine small businesses won 
373 licenses in the first 220 MHz auction. A second auction included 
225 licenses:

[[Page 50090]]

216 EA licenses and 9 EAG licenses. Fourteen companies claiming small 
business status won 158 licenses.\57\ A third auction included four 
licenses: 2 BEA licenses and 2 EAG licenses in the 220 MHz Service. No 
small or very small business won any of these licenses.\58\
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    \51\ Amendment of Part 90 of the Commission's Rules to Provide 
For the Use of the 220-222 MHz Band by the Private Land Mobile Radio 
Service, Third Report and Order, 12 FCC Rcd 10943, 11068-70 paras. 
291-295 (1997).
    \52\ Id. at 11068 para. 291.
    \53\ Id.
    \54\ See Letter to Daniel Phythyon, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
January 6, 1998.
    \55\ See generally ``220 MHz Service Auction Closes,'' public 
notice, 14 FCC Rcd 605 (WTB 1998).
    \56\ See ``FCC Announces It is Prepared to Grant 654 Phase II 
220 MHz Licenses After Final Payment is Made,'' public notice, 14 
FCC Rcd 1085 (WTB 1999).
    \57\ See ``Phase II 220 MHz Service Spectrum Auction Closes,'' 
public notice, 14 FCC Rcd 11218 (WTB 1999).
    \58\ See ``Multi-Radio Service Auction Closes,'' public notice, 
17 FCC Rcd 1446 (WTB 2002).
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    29. 700 MHz Guard Band Licenses. In the 700 MHz Guard Band Order, 
the Commission adopted size standards for ``small businesses'' and 
``very small businesses'' for purposes of determining their eligibility 
for special provisions such as bidding credits and installment 
payments.\59\ A small business in this service is an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues not exceeding $40 million for the preceding three 
years.\60\ 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 $15 million for the preceding 
three years.\61\ SBA approval of these definitions is not required.\62\ 
An auction of 52 Major Economic Area (MEA) licenses commenced on 
September 6, 2000, and closed on September 21, 2000.\63\ 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.\64\
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    \59\ Service Rules for the 746-764 MHz Bands, and Revisions to 
Part 27 of the Commission's Rules, Second Report and Order, 15 FCC 
Rcd 5299 (2000). Service rules were amended in 2007, but no changes 
were made to small business size categories. See Service Rules for 
the 698-746, 747-762 and 777-792 MHz Bands, WT Docket No. 06-150, 
Revision of the Commission's Rules to Ensure Compatibility with 
Enhanced 911 Emergency Calling Systems, CC Docket No. 94-102, 
Section 68.4(a) of the Commission's Rules Governing Hearing Aid-
Compatible Telephones, WT Docket No. 01-309, Biennial Regulatory 
Review--Amendment of Parts 1, 22, 24, 27, and 90 to Streamline and 
Harmonize Various Rules Affecting Wireless Radio Services, WT Docket 
03-264, Former Nextel Communications, Inc. Upper 700 MHz Guard Band 
Licenses and Revisions to Part 27 of the Commission's Rules, WT 
Docket No. 06-169, Implementing a Nationwide, Broadband, 
Interoperable Public Safety Network in the 700 MHz Band, PS Docket 
No. 06-229, Development of Operational, Technical and Spectrum 
Requirements for Meeting Federal, State and Local Public Safety 
Communications Requirements Through the Year 2010, WT Docket No. 96-
86, Report and Order and Further Notice of Proposed Rulemaking, 22 
FCC Rcd 8064 (2007).
    \60\ Id. at 5343 para. 108.
    \61\ Id.
    \62\ Id. at 5343 para. 108 n.246 (for the 746-764 MHz and 776-
704 MHz bands, the Commission is exempt from 15 U.S.C. 632, which 
requires Federal agencies to obtain Small Business Administration 
approval before adopting small business size standards).
    \63\ See ``700 MHz Guard Bands Auction Closes: Winning Bidders 
Announced,'' public notice, 15 FCC Rcd 18026 (2000).
    \64\ See ``700 MHz Guard Bands Auctions Closes: Winning Bidders 
Announced,'' public notice, 16 FCC Rcd 4590 (WTB 2001).
---------------------------------------------------------------------------

    30. Upper 700 MHz Band Licenses. The Commission released a Report 
and Order authorizing service in the Upper 700 MHz band.\65\ An auction 
for these licenses, previously scheduled for January 13, 2003, was 
postponed.\66\
---------------------------------------------------------------------------

    \65\ Service Rules for the 746-764 and 776-794 MHz Bands, and 
Revisions to Part 27 of the Commission's Rules, Second Memorandum 
Opinion and Order, 16 FCC Rcd 1239 (2001). Service rules were 
amended in 2007, but no changes were made to small business size 
categories. See Service Rules for the 698-746, 747-762 and 777-792 
MHz Bands, WT Docket No. 06-150, Revision of the Commission's Rules 
to Ensure Compatibility with Enhanced 911 Emergency Calling Systems, 
CC Docket No. 94-102, Section 68.4(a) of the Commission's Rules 
Governing Hearing Aid-Compatible Telephones, WT Docket No. 01-309, 
Biennial Regulatory Review--Amendment of Parts 1, 22, 24, 27, and 90 
to Streamline and Harmonize Various Rules Affecting Wireless Radio 
Services, WT Docket 03-264, Former Nextel Communications, Inc. Upper 
700 MHz Guard Band Licenses and Revisions to Part 27 of the 
Commission's Rules, WT Docket No. 06-169, Implementing a Nationwide, 
Broadband, Interoperable Public Safety Network in the 700 MHz Band, 
PS Docket No. 06-229, Development of Operational, Technical and 
Spectrum Requirements for Meeting Federal, State and Local Public 
Safety Communications Requirements Through the Year 2010, WT Docket 
No. 96-86, Report and Order and Further Notice of Proposed 
Rulemaking, 22 FCC Rcd 8064 (2007).
    \66\ See ``Auction of Licenses for 747-762 and 777-792 MHz Bands 
(Auction No. 31) Is Rescheduled,'' public notice, 16 FCC Rcd 13079 
(WTB 2003).
---------------------------------------------------------------------------

    31. Lower 700 MHz Band Licenses. The Commission adopted criteria 
for defining three groups of small businesses for purposes of 
determining their eligibility for special provisions such as bidding 
credits.\67\ The Commission has defined a small business as an entity 
that, together with its affiliates and controlling principals, has 
average gross revenues not exceeding $40 million for the preceding 
three years.\68\ A very small business is defined as an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues that are not more than $15 million for the preceding 
three years.\69\ Additionally, the Lower 700 MHz Band has a third 
category of small business status that may be claimed for Metropolitan/
Rural Service Area (MSA/RSA) licenses. The third category is 
entrepreneur, which is defined as 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.\70\ The SBA 
has approved these small size standards.\71\ An auction of 740 licenses 
(one license in each of the 734 MSAs/RSAs and one license in each of 
the six Economic Area Groupings (EAGs)) commenced on August 27, 2002, 
and closed on September 18, 2002. Of the 740 licenses available for 
auction, 484 licenses were sold to 102 winning bidders. Seventy-two of 
the winning bidders claimed small business, very small business or 
entrepreneur status and won a total of 329 licenses.\72\ A second 
auction commenced on May 28, 2003, and closed on June 13, 2003, and 
included 256 licenses: 5 EAG licenses and 476 CMA licenses.\73\ 
Seventeen winning bidders claimed small or very small business status 
and won sixty licenses, and nine winning bidders claimed entrepreneur 
status and won 154 licenses.\74\
---------------------------------------------------------------------------

    \67\ See Reallocation and Service Rules for the 698-746 MHz 
Spectrum Band (Television Channels 52-59), Report and Order, 17 FCC 
Rcd 1022 (2002).
    \68\ Id. at 1087-88 para. 172.
    \69\ Id.
    \70\ Id. at 1088 para. 173.
    \71\ See Letter to Thomas Sugrue, Chief, Wireless 
Telecommunications Bureau, Federal Communications Commission, from 
Aida Alvarez, Administrator, Small Business Administration, dated 
August 10, 1999.
    \72\ See ``Lower 700 MHz Band Auction Closes,'' public notice, 
17 FCC Rcd 17272 (WTB 2002).
    \73\ See ``Lower 700 MHz Band Auction Closes,'' public notice, 
18 FCC Rcd 11873 (WTB 2003).
    \74\ Id.
---------------------------------------------------------------------------

    32. Common Carrier Paging. The SBA has developed a small business 
size standard for wireless firms within the broad economic census 
category of ``Paging.'' \75\ Under this category, the SBA deems a 
business to be small if it has 1,500 or fewer employees. For the census 
category of Paging, Census Bureau data for 2002 show that there were 
807 firms in this category that operated for the entire year.\76\ Of 
this total, 804 firms had employment of 999 or fewer employees, and 
three firms had employment of 1,000 employees or more.\77\ Thus, under 
this category, the majority of firms can be considered small. In the 
Paging Third Report and Order, the Commission developed a small 
business size standard for ``small businesses'' and ``very small

[[Page 50091]]

businesses'' for purposes of determining their eligibility for special 
provisions such as bidding credits and installment payments.\78\ 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.\79\ The SBA has approved 
these small business size standards.\80\ An auction of Metropolitan 
Economic Area licenses commenced on February 24, 2000, and closed on 
March 2, 2000.\81\ Of the 985 licenses auctioned, 440 were sold. Fifty-
seven companies claiming small business status won. Also, according to 
Commission data, 365 carriers reported that they were engaged in the 
provision of paging and messaging services.\82\ Of those, the 
Commission estimates that 360 are small, under the SBA-approved small 
business size standard.\83\
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    \75\ 13 CFR 121.201, NAICS code 517211.
    \76\ U.S. Census Bureau, 2002 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 5, NAICS code 517211 (issued Nov. 2005).
    \77\ Id. The census data do not provide a more precise estimate 
of the number of firms that have employment of 1,500 or fewer 
employees; the largest category provided is for firms with ``1000 
employees or more.''
    \78\ Amendment of Part 90 of the Commission's Rules to Provide 
for the Use of the 220-222 MHz Band by the Private Land Mobile Radio 
Service, PR Docket No. 89-552, Third Report and Order and Fifth 
Notice of Proposed Rulemaking, 12 FCC Rcd 10943, 11068-70, paras. 
291-295, 62 FR 16004 (Apr. 3, 1997).
    \79\ See Letter to Amy Zoslov, Chief, Auctions and Industry 
Analysis Division, Wireless Telecommunications Bureau, FCC, from A. 
Alvarez, Administrator, SBA (Dec. 2, 1998) (SBA Dec. 2, 1998 
Letter).
    \80\ Revision of Part 22 and Part 90 of the Commission's Rules 
to Facilitate Future Development of Paging Systems, Memorandum 
Opinion and Order on Reconsideration and Third Report and Order, 14 
FCC Rcd 10030, paras. 98-107 (1999).
    \81\ Id. at 10085, para. 98.
    \82\ FCC Wireline Competition Bureau, Industry Analysis and 
Technology Division, ``Trends in Telephone Service'' at Table 5.3., 
page 5-5 (Feb. 2007). This source uses data that are current as of 
October 20, 2005.
    \83\ Id.
---------------------------------------------------------------------------

    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.\84\ 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.\85\ 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.
---------------------------------------------------------------------------

    \84\ Public notice, ``Auction of Wireless Communications 
Services, Auction Notes and Filing Requirements for 128 WCS Licenses 
Scheduled for April 15, 1997,'' DA 97-386, Feb. 21, 1997.
    \85\ SBA Dec. 2, 1998 Letter.
---------------------------------------------------------------------------

    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.\86\ Under that SBA small business size 
standard, a business is small if it has 1,500 or fewer employees.\87\ 
According to Commission data, 432 carriers reported that they were 
engaged in the provision of wireless telephony.\88\ The Commission has 
estimated that 221 of these are small under the SBA small business size 
standard.
---------------------------------------------------------------------------

    \86\ 13 CFR 121.201, NAICS code 517212.
    \87\ Id.
    \88\ FCC Wireline Competition Bureau, Industry Analysis and 
Technology Division, ``Trends in Telephone Service'' at Table 5.3, 
page 5-5 (Feb. 2007). This source uses data that are current as of 
October 20, 2005.
---------------------------------------------------------------------------

    35. Air-Ground Radiotelephone Service. The Commission has not 
adopted a small business size standard specific to the Air-Ground 
Radiotelephone Service.\89\ The Commission 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.\90\ There are approximately 100 licensees in the Air-Ground 
Radiotelephone Service, and the Commission estimates that almost all of 
them qualify as small under the SBA small business size standard.
---------------------------------------------------------------------------

    \89\ The service is defined in section 22.99 of the Commission's 
Rules, 47 CFR 22.99.
    \90\ 13 CFR 121.201, NAICS code 517212.
---------------------------------------------------------------------------

    36. 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.\91\ 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 evaluation in 
this analysis, the Commission estimates 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 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.\92\ 
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.
---------------------------------------------------------------------------

    \91\ 13 CFR 121.201, NAICS code 517212.
    \92\ Amendment of the Commission's Rules Concerning Maritime 
Communications, PR Docket No. 92-257, Third Report and Order and 
Memorandum Opinion and Order, 13 FCC Rcd 19853 (1998).
---------------------------------------------------------------------------

    37. Fixed Microwave Services. Fixed microwave services include 
common carrier,\93\ private operational-fixed,\94\ and broadcast 
auxiliary radio services.\95\ 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

[[Page 50092]]

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.\96\ 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. The Commission noted, however, that 
the common carrier microwave fixed licensee category includes some 
large entities.
---------------------------------------------------------------------------

    \93\ See 47 CFR 101 et seq. (formerly, Part 21 of the 
Commission's Rules) for common carrier fixed microwave services 
(except Multipoint Distribution Service).
    \94\ Persons eligible under parts 80 and 90 of the Commission's 
Rules can use Private Operational-Fixed Microwave services. See 47 
CFR Parts 80 and 90. Stations in this service are called 
operational-fixed to distinguish them from common carrier and public 
fixed stations. Only the licensee may use the operational-fixed 
station, and only for communications related to the licensee's 
commercial, industrial, or safety operations.
    \95\ Auxiliary Microwave Service is governed by Part 74 of Title 
47 of the Commission's rules. See 47 CFR 74. This service is 
available to licensees of broadcast stations and to broadcast and 
cable network entities. Broadcast auxiliary microwave stations are 
used for relaying broadcast television signals from the studio to 
the transmitter, or between two points such as a main studio and an 
auxiliary studio. The service also includes mobile television 
pickups, which relay signals from a remote location back to the 
studio.
    \96\ 13 CFR 121.201, NAICS code 517212.
---------------------------------------------------------------------------

    38. 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.\97\ There are presently approximately 55 licensees in 
this service. The Commission is 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.\98\ Under that SBA small business size 
standard, a business is small if it has 1,500 or fewer employees.\99\
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    \97\ This service is governed by Subpart I of Part 22 of the 
Commission's rules. See 47 CFR 22.1001 through 22.1037.
    \98\ 13 CFR 121.201, NAICS code 517212.
    \99\ Id.
---------------------------------------------------------------------------

    39. 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.\100\ 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.\101\ 
The SBA has approved these small business size standards.\102\ 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.
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    \100\ See Amendment of the Commission's Rules Regarding the 
37.0-38.6 GHz and 38.6-40.0 GHz Bands, ET Docket No. 95-183, Report 
and Order, 63 FR 6079 (Feb. 6, 1998).
    \101\ Id.
    \102\ See Letter to Kathleen O'Brien Ham, Chief, Auctions and 
Industry Analysis Division, Wireless Telecommunications Bureau, FCC, 
from Aida Alvarez, Administrator, SBA (Feb. 4, 1998).
---------------------------------------------------------------------------

    40. Broadband Radio Service and Educational Broadband Service. 
Broadband Radio Service comprises Multichannel Multipoint Distribution 
Service (MMDS) systems and Multipoint Distribution Service (MDS).\103\ 
MMDS systems, often referred to as ``wireless cable,'' transmit video 
programming to subscribers using the microwave frequencies of MDS and 
Educational Broadband Service (formerly known as Instructional 
Television Fixed Service).\104\ Wireless cable systems use 2 GHz band 
frequencies of the Broadband Radio Service (``BRS''), formerly 
Multipoint Distribution Service (``MDS''),\105\ and the Educational 
Broadband Service (``EBS''), formerly Instructional Television Fixed 
Service (``ITFS''),\106\ to transmit video programming and provide 
broadband services to residential subscribers.\107\ These services were 
originally designed for the delivery of multichannel video programming, 
similar to that of traditional cable systems, but over the past several 
years licensees have focused their operations instead on providing two-
way high-speed Internet access services.\108\ We estimate that the 
number of wireless cable subscribers is approximately 100,000, as of 
March 2005. Local Multipoint Distribution Service (``LMDS'') is a fixed 
broadband point-to-multipoint microwave service that provides for two-
way video telecommunications.\109\ As described below, the SBA small 
business size standard for the broad census category of Cable and Other 
Program Distribution, which consists of such entities generating $13.5 
million or less in annual receipts, appears applicable to MDS, ITFS and 
LMDS.\110\ Other standards also apply, as described.
---------------------------------------------------------------------------

    \103\ Amendment of Parts 1, 21, 73, 74, and 101 of the 
Commission's Rules to Facilitate the Provision of Fixed and Mobile 
Broadband Access, Educational and Other Advanced Services in the 
2150-2162 and 2500-2690 MHz Bands, WT Docket No. 03-66, RM-10586, 
Report and Order and Further Notice of Proposed Rulemaking, 19 FCC 
Rcd 14165 (2004).
    \104\ See id.
    \105\ MDS, also known as Multichannel Multipoint Distribution 
Service (``MMDS''), is regulated by part 21 of the Commission's 
rules; see 47 CFR Part 21, subpart K; and has been renamed the 
Broadband Radio Service (BRS); see Amendment of Parts 1, 21, 73, 74 
and 101 of the Commission's Rules to Facilitate the Provision of 
Fixed and Mobile Broadband Access, Educational and Other Advanced 
Services in the 2150-2162 and 2500-2690 MHz Bands; Part 1 of the 
Commission's Rules--Further Competitive Bidding Procedures; 
Amendment of Parts 21 and 74 to Enable Multipoint Distribution 
Service and the Instructional Television Fixed Service Amendment of 
Parts 21 and 74 to Engage in Fixed Two-Way Transmissions; Amendment 
of Parts 21 and 74 of the Commission's Rules With Regard to 
Licensing in the Multipoint Distribution Service and in the 
Instructional Television Fixed Service for the Gulf of Mexico, 19 
FCC Rcd 14165 (2004) (``MDS/ITFS Order'').
    \106\ ITFS systems are regulated by Part 74 of the Commission's 
rules; see 47 CFR Part 74, subpart I. ITFS, an educational service, 
has been renamed the Educational Broadband Service (EBS); see MDS/
ITFS Order, 19 FCC Rcd 14165. ITFS licensees, however, are permitted 
to lease spectrum for MDS operation.
    \107\ See Annual Assessment of the Status of Competition in the 
Market for the Delivery of Video Programming, Eleventh Annual 
Report, 20 FCC Rcd 2507, 2565 para. 131 (2006) (``2006 Cable 
Competition Report'').
    \108\ Id.
    \109\ See Local Multipoint Distribution Service, 12 FCC Rcd 
12545 (1997).
    \110\ 13 CFR 121.201, NAICS code 517510.
---------------------------------------------------------------------------

    41. The Commission has defined small MDS (now BRS) and LMDS 
entities in the context of Commission license auctions. In the 1996 MDS 
auction,\111\ the Commission defined a small business as an entity that 
had annual average gross revenues of less than $40 million in the 
previous three calendar years.\112\ This definition of a small entity 
in the context of MDS auctions has been approved by the SBA.\113\ In 
the MDS auction, 67 bidders won 493 licenses. Of the 67 auction 
winners, 61 claimed status as a small business. At this time, the 
Commission estimates that of the 61 small business MDS auction winners, 
48 remain small business licensees. In addition to the 48 small 
businesses that hold BTA authorizations, there are approximately 392 
incumbent MDS licensees that have gross revenues that are not more than 
$40 million and are thus considered small entities.\114\ MDS licensees 
and wireless cable operators that did not receive their licenses as a 
result of the MDS auction fall under the SBA small business size 
standard for Cable and

[[Page 50093]]

Other Program Distribution. Information available to us indicates that 
there are approximately 850 of these licensees and operators that do 
not generate revenue in excess of $13.5 million annually. Therefore, we 
estimate that there are approximately 850 small entity MDS (or BRS) 
providers, as defined by the SBA and the Commission's auction rules.
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    \111\ MDS Auction No. 6 began on November 13, 1995, and closed 
on March 28, 1996. (67 bidders won 493 licenses.)
    \112\ 47 CFR 21.961(b)(1).
    \113\ See ITFS Order, 10 FCC Rcd at 9589.
    \114\ 47 U.S.C. 309(j). Hundreds of stations were licensed to 
incumbent MDS licensees prior to implementation of Section 309(j) of 
the Communications Act of 1934, 47 U.S.C. 309(j). For these pre-
auction licenses, the applicable standard is SBA's small business 
size standards for ``other telecommunications'' (annual receipts of 
$13.5 million or less). See 13 CFR 121.201, NAICS code 517910.
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    42. Educational institutions are included in this analysis as small 
entities; however, the Commission has not created a specific small 
business size standard for ITFS (now EBS).\115\ The Commission 
estimates that there are currently 2,032 ITFS (or EBS) licensees, and 
all but 100 of the licensees are held by educational institutions. 
Thus, the Commission estimates that at least 1,932 ITFS licensees are 
small entities.
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    \115\ In addition, the term ``small entity'' within SBREFA 
applies to small organizations (nonprofits) and to small 
governmental jurisdictions (cities, counties, towns, townships, 
villages, school districts, and special districts with populations 
of less than 50,000). 5 U.S.C. 601(4)-(6). The Commission does not 
collect annual revenue data on ITFS licensees.
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    43. 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.\116\ 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.\117\ 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.\118\ The SBA has approved these small 
business size standards in the context of LMDS auctions.\119\ 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.
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    \116\ See Local Multipoint Distribution Service, Second Report 
and Order, 12 FCC Rcd 12545 (1997).
    \117\ Id.
    \118\ See id.
    \119\ See Letter to Dan Phythyon, Chief, Wireless 
Telecommunications Bureau, FCC, from Aida Alvarez, Administrator, 
SBA (Jan. 6, 1998).
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    44. 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.\120\ In 
the 218-219 MHz Report and Order and Memorandum Opinion and Order, the 
Commission 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.\121\ 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.\122\ Currently, no second auction is scheduled.
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    \120\ Implementation of Section 309(j) of the Communications 
Act--Competitive Bidding, PP Docket No. 93-253, Fourth Report and 
Order, 59 FR 24947 (May 13, 1994).
    \121\ Amendment of Part 95 of the Commission's Rules to Provide 
Regulatory Flexibility in the 218-219 MHz Service, WT Docket No. 98-
169, Report and Order and Memorandum Opinion and Order, 64 FR 59656 
(Nov. 3, 1999).
    \122\ Amendment of Part 95 of the Commission's Rules to Provide 
Regulatory Flexibility in the 218-219 MHz Service, WT Docket No. 98-
169, Report and Order and Memorandum Opinion and Order, 64 FR 59656 
(Nov. 3, 1999).
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    45. 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.\123\ The Commission believes that there are only two licensees 
in the 24 GHz band that were relocated from the 18 GHz band, Teligent 
\124\ and TRW, Inc. It is the Commission's 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.
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    \123\ 13 CFR 121.201, NAICS code 513322 (changed to 517212 in 
October 2002).
    \124\ Teligent acquired the DEMS licenses of FirstMark, the only 
licensee other than TRW in the 24 GHz band whose license has been 
modified to require relocation to the 24 GHz band.
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    46. 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.\125\ ``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.\126\ The SBA has approved these small business size 
standards.\127\ These size standards will apply to the future auction, 
if held.
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    \125\ Amendments to Parts 1, 2, 87 and 101 of the Commission's 
Rules to License Fixed Services at 24 GHz, Report and Order, 15 FCC 
Rcd 16934, 16967 (2000); see also 47 CFR 101.538(a)(2).
    \126\ Amendments to Parts 1, 2, 87 and 101 of the Commission's 
Rules to License Fixed Services at 24 GHz, Report and Order, 15 FCC 
Rcd 16934, 16967 (2000); see also 47 CFR 101.538(a)(1).
    \127\ See Letter to Margaret W. Wiener, Deputy Chief, Auctions 
and Industry Analysis Division, Wireless Telecommunications Bureau, 
FCC, from Gary M. Jackson, Assistant Administrator, SBA (July 28, 
2000).
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    47. 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.'' \128\ Under the 
SBA size standard, such a business is small if it has average annual 
receipts of $23 million or less.\129\ According to Census Bureau data 
for 2002, there were 2,529 firms in this category that operated for the 
entire year.\130\ Of these, 2,437 firms had annual receipts of under 
$10 million, and an additional 47 firms had receipts of between $10 
million and $24,999,999. Consequently, the Commission estimates that 
the majority of these firms are small entities that may be affected by 
the Commission's action.
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    \128\ U.S. Census Bureau, ``2002 NAICS Definitions: 518111 
Internet Service Providers'' (Feb. 2004) http://www.census.gov.
    \129\ 13 CFR 121.201, NAICS code 518111 (changed from previous 
code 514191, ``On-Line Information Services,'' in Oct. 2002).
    \130\ U.S. Census Bureau, 1997 Economic Census, Subject Series: 
Information, ``Establishment and Firm Size (Including Legal Form of 
Organization),'' Table 4, NAICS code 514191 (issued Oct. 2000).
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    48. Part 15 Device Manufacturers. The Commission has not developed 
a definition of small entities applicable to unlicensed communications 
devices manufacturers. Therefore, the Commission will utilize the SBA 
definition applicable to Radio and Television Broadcasting and Wireless 
Communications Equipment

[[Page 50094]]

Manufacturing. The Census Bureau defines this category as follows: 
``This industry comprises establishments primarily engaged in 
manufacturing radio and television broadcast and wireless 
communications equipment. Examples of products made by these 
establishments are: Transmitting and receiving antennas, cable 
television equipment, GPS equipment, pagers, cellular phones, mobile 
communications equipment, and radio and television studio and 
broadcasting equipment.'' \131\ The SBA has developed a small business 
size standard for Radio and Television Broadcasting and Wireless 
Communications Equipment Manufacturing, which is: All such firms having 
750 or fewer employees.\132\ According to Census Bureau data for 2002, 
there were 1,041 establishments in this category that operated for the 
entire year.\133\ Of this total, 1,010 had employment of under 500, and 
an additional 13 had employment of 500 to 999.\134\ Thus, under this 
size standard, the majority of firms can be considered small.
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    \131\ U.S. Census Bureau, 2002 NAICS Definitions, ``334220 Radio 
and Television Broadcasting and Wireless Communications Equipment 
Manufacturing''; http://www.census.gov/epcd/naics02/def/NDEF334.HTM#N3342.
    \132\ 13 CFR 121.201, NAICS code 334220.
    \133\ U.S. Census Bureau, American FactFinder, 2002 Economic 
Census, Industry Series, Industry Statistics by Employment Size, 
NAICS code 334220 (released May 26, 2005); http://factfinder.census.gov. The number of ``establishments'' is a less 
helpful indicator of small business prevalence in this context than 
would be the number of ``firms'' or ``companies,'' because the 
latter take into account the concept of common ownership or control. 
Any single physical location for an entity is an establishment, even 
though that location may be owned by a different establishment. 
Thus, the numbers given may reflect inflated numbers of businesses 
in this category, including the numbers of small businesses. In this 
category, the Census breaks-out data for firms or companies only to 
give the total number of such entities for 2002, which was 929.
    \134\ Id. An additional 18 establishments had employment of 
1,000 or more.
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    49. Telephone Apparatus Manufacturing. The Census Bureau defines 
this category as follows: ``This industry comprises establishments 
primarily engaged in manufacturing wire telephone and data 
communications equipment. These products may be standalone or board-
level components of a larger system. Examples of products made by these 
establishments are central office switching equipment, cordless 
telephones (except cellular), PBX equipment, telephones, telephone 
answering machines, LAN modems, multi-user modems, and other data 
communications equipment, such as bridges, routers, and 
gateways.''\135\ The SBA has developed a small business size standard 
for Telephone Apparatus Manufacturing, which is: All such firms having 
1,000 or fewer employees.\136\ According to Census Bureau data for 
2002, there were a total of 518 establishments in this category that 
operated for the entire year.\137\ Of this total, 511 had employment of 
under 1,000, and an additional 7 had employment of 1,000 to 2,499.\138\ 
Thus, under this size standard, the majority of firms can be considered 
small.
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    \135\ U.S. Census Bureau, 2002 NAICS Definitions, ``334210 
Telephone Apparatus Manufacturing''; http://www.census.gov/epcd/naics02/def/NDEF334.HTM#N3342.
    \136\ 13 CFR 121.201, NAICS code 334210.
    \137\ U.S. Census Bureau, American FactFinder, 2002 Economic 
Census, Industry Series, Industry Statistics by Employment Size, 
NAICS code 334210 (released May 26, 2005); http://factfinder.census.gov. The number of ``establishments'' is a less 
helpful indicator of small business prevalence in this context than 
would be the number of ``firms'' or ``companies,'' because the 
latter take into account the concept of common ownership or control. 
Any single physical location for an entity is an establishment, even 
though that location may be owned by a different establishment. 
Thus, the numbers given may reflect inflated numbers of businesses 
in this category, including the numbers of small businesses. In this 
category, the Census breaks-out data for firms or companies only to 
give the total number of such entities for 2002, which was 450.
    \138\ Id. An additional 4 establishments had employment of 2,500 
or more.
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    50. Other Communications Equipment Manufacturing. The Census Bureau 
defines this category as follows: ``This industry comprises 
establishments primarily engaged in manufacturing communications 
equipment (except telephone apparatus, and radio and television 
broadcast, and wireless communications equipment).''\139\ The SBA has 
developed a small business size standard for Other Communications 
Equipment Manufacturing, which is: All such firms having 750 or fewer 
employees.\140\ According to Census Bureau data for 2002, there were a 
total of 503 establishments in this category that operated for the 
entire year.\141\ Of this total, 493 had employment of under 500, and 
an additional 7 had employment of 500 to 999.\142\ Thus, under this 
size standard, the majority of firms can be considered small.
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    \139\ U.S. Census Bureau, 2002 NAICS Definitions, ``334290 Other 
Communications Equipment Manufacturing''; http://www.census.gov/epcd/naics02/def/NDEF334.HTM#N3342.
    \140\ 13 CFR 121.201, NAICS code 334290.
    \141\ U.S. Census Bureau, American FactFinder, 2002 Economic 
Census, Industry Series, Industry Statistics by Employment Size, 
NAICS code 334290 (released May 26, 2005); http://factfinder.census.gov. The number of ``establishments'' is a less 
helpful indicator of small business prevalence in this context than 
would be the number of ``firms'' or ``companies,'' because the 
latter take into account the concept of common ownership or control. 
Any single physical location for an entity is an establishment, even 
though that location may be owned by a different establishment. 
Thus, the numbers given may reflect inflated numbers of businesses 
in this category, including the numbers of small businesses. In this 
category, the Census breaks-out data for firms or companies only to 
give the total number of such entities for 2002, which was 471.
    \142\ Id. An additional 3 establishments had employment of 1,000 
or more.
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D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities

    51. Should the Commission decide to extend the automatic roaming 
requirement to non-interconnected services or features, including 
services that have been classified as information services, such as 
broadband Internet access service, or other non-CMRS services, the only 
reporting or recordkeeping costs incurred will be administrative costs 
to ensure that an entity's practices are in compliance with the 
automatic rule. The compliance requirement is that carriers must 
provide automatic roaming to any requesting technologically compatible 
carrier outside of the requesting carrier's home market on reasonable 
and non-discriminatory terms and conditions.\143\ The Commission seeks 
comment on the possible burden such requirements would place on small 
entities. Also, the Commission seeks comment on whether a special 
approach toward any possible compliance burden on small entities might 
be appropriate. Entities, especially small businesses, are encouraged 
to quantify the costs and benefits of any compliance requirement that 
may result from this proceeding.
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    \143\ See Further Notice of Proposed Rulemaking, Section 78.
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E. Steps Taken To Minimize Significant Economic Impact on Small 
Entities and Significant Alternatives Considered

    52. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives (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.\144\
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    \144\ See 5 U.S.C. 603(c).

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[[Page 50095]]

    53. The Commission's primary objective in this proceeding is to 
facilitate seamless wireless communications for consumers, even when 
they are outside of the coverage area of their own service providers. 
The FNPRM seeks to build on the decisions made in the Report and Order. 
In the Report and Order, the Commission clarifies that the automatic 
roaming is a common carrier obligation and adopts an automatic roaming 
rule that is applicable to services offered by CMRS carriers that are 
real-time, two-way switched voice or data services that are 
interconnected with the public switched network, and to push-to-talk 
and text messaging service.\145\ Recognizing wireless subscribers' 
increasing reliance on mobile telephony services, especially the 
growing demand of data services by consumers, the FNPRM seeks comment 
on whether the Commission should extend the applicability of the 
automatic roaming requirements to non-interconnected services or 
features, including services that have been classified as information 
services, such as wireless broadband Internet access service, or other 
non-CMRS services.
---------------------------------------------------------------------------

    \145\ See supra paras. 2, 65-67.
---------------------------------------------------------------------------

    54. To the extent that addressing the issue raised in the FNPRM 
requires modifying the applicability of the automatic roaming rules, 
the Commission seeks comment on the effect that such rule changes will 
have on small entities, on whether alternative rules should be adopted 
for small entities in particular, and on what effect such alternative 
rules would have on those entities. The Commission invites comment on 
ways in which the Commission can achieve its goals while at the same 
time impose minimal burdens on small wireless service providers. Below, 
the Commission summarizes the issues raised in the FNPRM.
    55. Mobile Data Service Roaming. The item seeks comment on whether 
the Commission should extend automatic roaming obligations to non-
interconnected services and features, including information services. 
To the extent that a covered carrier might be a small entity, the 
Commission believes that extending the scope of automatic roaming 
obligation would be a benefit rather than a burden.
    56. Technical Issues. The item also seeks comment on whether there 
are any special technical issues (or otherwise) associated with roaming 
among data networks that may not exist when roaming among CMRS 
carriers' interconnected voice networks. In the FNPRM, the Commission 
noted that it would be concerned if requiring a carrier to offer 
roaming service on its data network to the customers of other carriers 
resulted in the carrier facing capacity constraints that adversely 
affect its own customers. The FNPRM, therefore, asks whether a carrier 
should have the right to limit access to its network by roamers, and 
what parameters should be considered as justification for such limits.
    57. Jurisdiction over Information Service. In the Wireless 
Broadband Classification Order,\146\ the Commission determined that 
mobile wireless broadband Internet access service is an information 
service, and that it is not CMRS. If the Commission were to impose an 
automatic roaming on mobile wireless broadband Internet access service 
as proposed in the FNPRM, the jurisdictional issue should be considered 
regarding how could we treat the information service for roaming 
purpose. For example, could the Commission base the requirement on 
Title I ancillary jurisdiction, or on the Title III regulation of radio 
services? Alternatively, the FNPRM seeks comment on whether the 
Commission should restrict the automatic roaming mandate only to non-
interconnected data services that are not classified as information 
services.
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    \146\ See generally, Wireless Broadband Internet Access 
Declaratory Ruling. 22 FCC Rcd 5901.
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F. Federal Rules that May Duplicate, Overlap, or Conflict with the 
Proposed Rules

    58. None.

Ordering Clauses

    59. Accordingly, it is ordered that, pursuant to the authority 
contained in Sections 1, 4(i), 201, 202, 251(a), 253, 303(r), and 
332(c)(1)(B) of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 154(i), 201, 202, 251(a), 253, 303(r), and 332(c)(1)(B), and 
Section 1.425 of the Commission's rules, 47 CFR 1.425, this Report and 
Order and FNPRM is hereby adopted.
    60. It is further ordered that Sections 20.3 and 20.12 of the 
Commission's rules are amended as specified in Appendix A, and such 
rule amendments shall be effective 60 days after the date of 
publication of the text thereof in the Federal Register.
    61. It is further ordered that the Joint Petition for Commission 
Inquiry Pursuant to Section 403 of the Communications Act filed by 
AIRPEAK Communications, LLC, Airtel Wireless LLC, Cleveland Unlimited, 
Inc., Leap Wireless International, Inc., MetroPCS Communications, Inc., 
Punxsutawney Communications, Rural Telecommunications Group, Inc., and 
Southern Communications Services, Inc. d/b/a SouthernLINC Wireless, on 
April 25, 2006 is hereby denied.
    62. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Report and Order and the FNPRM, including the Final 
Regulatory Flexibility Analysis and the Initial Regulatory Flexibility 
Analysis, to the Chief Counsel for Advocacy of the Small Business 
Administration.

Federal Communications Commission.
William F. Caton,
Deputy Secretary.
 [FR Doc. E7-17123 Filed 8-29-07; 8:45 am]
BILLING CODE 6712-01-P