[Federal Register Volume 73, Number 43 (Tuesday, March 4, 2008)]
[Proposed Rules]
[Pages 11587-11591]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-4143]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 32, 36, 54 and 63

[WC Docket No. 05-337; CC Docket No. 96-45; FCC 08-22]


High-Cost Universal Service Support; Federal-State Joint Board on 
Universal Service

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Commission seeks comment on the 
Recommended Decision of the Federal-State Joint Board on Universal 
Service, released on November 20, 2007, regarding comprehensive reform 
of high-cost universal service. We also incorporate by reference the 
Identical Support NPRM and the Reverse Auctions NPRM into this NPRM. In 
addition, we will incorporate the records developed in response to 
those two items into this proceeding.

DATES: Comments are due on or before April 3, 2008 and reply comments 
are due on or before May 5, 2008.

ADDRESSES: You may submit comments, identified by WC Docket No. 05-337 
and CC Docket No. 96-45, 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: [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. Include the docket number in the subject line 
of the message.
     Mail: Secretary, Federal Communications Commission, 445 
12th Street, SW., Washington, DC 20554.
     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: Ted Burmeister or Katie King, Wireline 
Competition Bureau, Telecommunications Access Policy Division, 202-418-
7400 or TTY: 202-418-0484.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Notice of Proposed Rulemaking in WC Docket No. 05-337, CC Docket No. 
96-45, FCC 08-22, adopted January 16, 2008, and released January 29, 
2008. The complete text of this document 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.
    The 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.

Initial Paperwork Reduction Act of 1995 Analysis

    This document does not contain proposed information collection(s) 
subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-
13. In addition, therefore, it does not contain any new or modified 
``information collection burden for small 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).

Synopsis of the Notice of Proposed Rulemaking

Introduction

    1. In this Notice of Proposed Rulemaking (NPRM), we seek comment on 
ways to reform the high-cost universal service program. Specifically, 
we seek comment on the recommendation of the Federal-State Joint Board 
on Universal Service (Joint Board) regarding comprehensive reform of 
high-cost universal service support. Federal-State Joint Board on 
Universal Service, Recommended Decision, 22 FCC Rcd 20477 (2007) 
(Recommended Decision). We also incorporate into this NPRM the 
following two Notices of Proposed Rulemaking: (1) The Notice of 
Proposed Rulemaking released by the Commission on January 29, 2008, 
which seeks comment on the Commission's rules governing the amount of 
high-cost universal service support provided to eligible 
telecommunications carriers (ETCs), including elimination of the 
``identical support rule;'' and (2) the Notice of Proposed Rulemaking 
released by the Commission on January 29, 2008, which seeks comment on 
whether and how to implement reverse auctions (a form of competitive 
bidding) as the disbursement mechanism for determining the amount of 
high-cost universal service support for ETCs serving rural, insular, 
and high-cost areas. High-Cost Universal Service Support; Federal-State 
Joint Board on Universal Service, Notice of Proposed Rulemaking, FCC 
08-4 (rel. Jan. 29, 2008) (Identical Support Rule NPRM); High-Cost 
Universal Service Support; Federal-State Joint Board on Universal 
Service, Notice of Proposed Rulemaking, FCC 08-5 (rel. Jan. 29, 2008) 
(Reverse Auctions NPRM). We also will incorporate the records developed 
in response to those NPRMs into this proceeding. We note, however, that 
such incorporation of these two NPRMs does not change or otherwise 
affect, and we expressly preserve, the positions of the Commission 
members with regard to those particular NPRMs and the Joint Board's 
recommendation.

Background

    2. In the Telecommunications Act of 1996 (1996 Act), Congress 
sought to preserve and advance universal service while, at the same 
time, opening all telecommunications markets to competition. 
Telecommunications Act of 1996, Public Law 104-104 (1996). Section 
254(b) of the Act, which was added by the 1996 Act, directs the Joint 
Board and the Commission to base policies for the preservation and 
advancement of universal service on

[[Page 11588]]

several general principles, plus other principles that the Commission 
may establish. 47 U.S.C. 254(b). Among other things, there should be 
specific, predictable, and sufficient federal and state universal 
service support mechanisms; quality services should be available at 
just, reasonable, and affordable rates; and consumers in all regions of 
the nation should have access to telecommunications services that are 
reasonably comparable to those services provided in urban areas at 
reasonably comparable rates. 47 U.S.C. 254(b)(1), (3), (5). Section 
254(e) of the Act provides that only ETCs designated under section 
214(e) shall be eligible to receive federal universal service support, 
and that any such support should be explicit and sufficient to achieve 
the purposes of that section. 47 U.S.C. 214(e), 254(e).
    3. In 2002, the Commission asked the Joint Board to review certain 
of the Commission's rules related to the high-cost universal service 
support mechanisms. Federal-State Joint Board on Universal Service, 67 
FR 70703, November 26, 2002. Among other things, the Commission asked 
the Joint Board to review the Commission's rules relating to high-cost 
universal service support in study areas in which a competitive ETC 
provides service. In response, the Joint Board made a number of 
recommendations concerning the designation of ETCs in high-cost areas, 
but declined to recommend that the Commission modify the basis of 
support (i.e., the methodology used to calculate support) in study 
areas with multiple ETCs. Federal-State Joint Board on Universal 
Service, Recommended Decision, 19 FCC Rcd 4257 (2004). Instead, the 
Joint Board recommended that it and the Commission continue to consider 
possible modifications to the basis of support for competitive ETCs as 
part of an overall review of the high-cost support mechanisms for rural 
and non-rural carriers.
    4. In 2004, the Commission asked the Joint Board to review the 
Commission's rules relating to the high-cost universal service support 
mechanisms for rural carriers and to determine the appropriate rural 
mechanism to succeed the plan adopted in the Rural Task Force Order. 
Federal-State Joint Board on Universal Service, Order, 69 FR 48232, 
August 9, 2004 (Rural Referral Order); Rural Task Force Order, 66 FR 
30080, June 5, 2001. In August 2004, the Joint Board sought comment on 
issues the Commission referred to it related to the high-cost universal 
service support mechanisms for rural carriers. Federal-State Joint 
Board on Universal Service Seeks Comment on Certain of the Commission's 
Rules Relating to High-Cost Universal Service Support, Public Notice, 
69 FR 53917, September 3, 2004. The Joint Board also specifically 
sought comment on the methodology for calculating support for ETCs in 
competitive study areas. Since that time, the Joint Board has sought 
comment on a variety of specific proposals for addressing the issues of 
universal service support for rural carriers and the basis of support 
for competitive ETCs, including proposals developed by members and 
staff of the Joint Board, as well as the use of reverse auctions 
(competitive bidding) to determine high-cost universal service funding 
to ETCs. Federal-State Joint Board on Universal Service Seeks Comment 
on Proposals to Modify the Commission's Rules Relating to High-Cost 
Universal Service Support, 20 FCC Rcd 14267 (2005); Federal-State Joint 
Board on Universal Service Seeks Comment on the Merits of Using 
Auctions to Determine High-Cost Universal Service Support, 71 FR 50420, 
August 25, 2006.
    5. On May 1, 2007, the Joint Board recommended that the Commission 
adopt an interim cap on high-cost universal service support provided to 
competitive ETCs to stem the dramatic growth in high-cost support. 
High-Cost Universal Service Support; Federal-State Joint Board on 
Universal Service, Recommended Decision, 22 FCC Rcd 8998 (2007). 
Specifically, the Joint Board recommended that the Commission cap the 
amount of support that competitive ETCs may receive for each state 
based on the average level of competitive ETC support distributed in 
that state in 2006. The Joint Board further recommended that the 
interim cap apply until one year from the date that the Joint Board 
makes its recommendation regarding comprehensive and fundamental high-
cost universal service reform. The Joint Board also recommended that 
the Commission consider abandoning or modifying the so-called 
``identical support'' rule in any reform it ultimately adopts. On May 
14, 2007, the Commission released a Notice of Proposed Rulemaking, 
seeking comment on the Joint Board's recommendation regarding the 
interim cap on competitive ETC support. Federal-State Joint Board on 
Universal Service, Notice of Proposed Rulemaking, 22 FCC Rcd 9705 
(2007).
    6. In a companion Public Notice, released May 1, 2007, the Joint 
Board sought comment on various proposals to reform the high-cost 
universal service support mechanisms. Federal-State Joint Board on 
Universal Service Seeks Comment on Long Term, Comprehensive High-Cost 
Universal Service Reform, Public Notice, 22 FCC Rcd 9023 (2007). 
Specifically the Joint Board sought comment on the following issues and 
proposals: (1) The use of reverse auctions to determine high-cost 
universal service support; (2) the use of GIS technology and network 
cost modeling to better calculate and target support at more granular 
levels; (3) disaggregation of support; (4) the methodology for 
calculating support for competitive ETCs; and (5) whether universal 
service funding should be used to promote broadband deployment.
    7. Finally, the Commission recently adopted two Notices of Proposed 
Rulemaking, which seek comment on specific high-cost universal service 
comprehensive reform proposals. First, on January 9, 2008, the 
Commission adopted the Identical Support NPRM, which seeks comment on 
the Commission's rules governing the amount of high-cost universal 
service support provided to ETCs and tentatively concludes that the 
Commission should eliminate the ``identical support'' rule. Identical 
Support Rule NPRM, FCC 08-4. Second, on January 9, 2008, the Commission 
adopted the Reverse Auctions NPRM, which tentatively concludes that 
reverse auctions should be used as the disbursement mechanism to 
determine the amount of high-cost universal service for ETCs serving 
rural, insular, and high-cost areas and seeks comment on how to 
implement reverse auctions for this purpose. Reverse Auctions NPRM, FCC 
08-5.

Discussion

    8. On November 20, 2007, the Federal-State Joint Board on Universal 
Service issued its Recommended Decision regarding comprehensive reform 
of high-cost universal service. Recommended Decision, 22 FCC Rcd 20477 
(2007). In this NPRM, we seek comment on the Joint Board's 
recommendations contained in the Recommended Decision.
    9. We also incorporate by reference the Identical Support NPRM and 
the Reverse Auctions NPRM into this NPRM. In addition, we will 
incorporate the records developed in response to those two items into 
this proceeding. We thus request that parties who file comments in 
response to either or both of those items include those comments as 
part of their filings in response to this NPRM. We note, however, that 
such incorporation of these two NPRMs does not change or otherwise 
affect, and we expressly preserve, the positions of the Commission 
members with regard to

[[Page 11589]]

those particular NPRMs and the Joint Board's recommendation.

Procedural Matters

    10. Pursuant to Sec. Sec.  1.415 and 1.419 of the Commission's 
rules, 47 CFR 1.415, 1.419, interested parties may file comments on or 
before April 3, 2008 and reply comments are due on or before May 5, 
2008. 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 must be addressed to 445 12th Street, SW., Washington, DC 20554.
    People with Disabilities: 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).

Ex Parte Requirements

    11. These matters shall be treated as a ``permit-but-disclose'' 
proceeding in accordance with the Commission's ex parte rules. 47 CFR 
1.1200 through 1.1216. 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 is generally required. 
47 CFR 1.1206(b)(2). Other requirements pertaining to oral and written 
presentations are set forth in Sec.  1.1206(b) of the Commission's 
rules. 47 CFR 1.1206(b).

Initial Regulatory Flexibility Analysis

    12. As required by the Regulatory Flexibility Act (RFA), 5 U.S.C. 
603, the Commission has prepared this Initial Regulatory Flexibility 
Analysis (IRFA) of the possible significant economic impact on small 
entities by the policies and rules proposed in the NPRM. Written public 
comments are requested on this IRFA, which is set forth below. Comments 
must be identified as responses to the IRFA and must be filed on or 
before April 3, 2008. The Commission will send a copy of the NPRM, 
including this IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration (SBA). 5 U.S.C. 603(a).

Need for, and Objectives of, the Proposed Rules

    13. In the Telecommunications Act of 1996 (1996 Act), Congress 
sought to preserve and advance universal service while, at the same 
time, opening all telecommunications markets to competition. 
Telecommunications Act of 1996, Public Law 104-104 (1996). Section 
254(b) of the Act directs the Federal-State Joint Board on Universal 
Service (Joint Board) and the Commission to base policies for the 
preservation and advancement of universal service on several general 
principles, plus other principles that the Commission may establish. 
Section 254(e) provides that only eligible telecommunications carriers 
(ETCs) designated under section 214(e) shall be eligible to receive 
federal universal service support, and any such support should be 
explicit and sufficient to achieve the purposes of that section.
    14. In this NPRM, we seek comment on ways to reform the high-cost 
universal service program. Specifically, we seek comment on the 
recommendation of the Joint Board regarding comprehensive reform of 
high-cost universal service support. Recommended Decision, 22 FCC Rcd 
20477 (2007). We also incorporate into this NPRM the following two 
Notices of Proposed Rulemaking: (1) The Notice of Proposed Rulemaking 
released by the Commission on January 29, 2008. which seeks comment on 
the Commission's rules governing the amount of high-cost universal 
service support provided to eligible telecommunications carriers 
(ETCs), including elimination of the ``identical support rule;'' and 
(2) the Notice of Proposed Rulemaking released by the Commission on 
January 29, 2008, which seeks comment on whether and how to implement 
reverse auctions (a form of competitive bidding) as the disbursement 
mechanism for determining the amount of high-cost universal service 
support for ETCs serving rural, insular, and high-cost areas. Identical 
Support Rule NPRM, FCC 08-4; Reverse Auctions NPRM, FCC 08-5. We also 
will incorporate the records developed in response to those Notices of 
Proposed Rulemaking into this proceeding. We note, however, that such 
incorporation of these two NPRMs does not change or otherwise affect, 
and we expressly preserve, the positions of the Commission members with 
regard to those particular NPRMs and the Joint Board's recommendation.

Legal Basis

    15. The legal basis for any action that may be taken pursuant to 
the NPRM is contained in sections 1, 2, 4(i), 4(j), 201 through 205, 
214, 254, and 403 of the Communications Act of 1934, as amended, and 
Sec. Sec.  1.1, 1.411 through 1.419, and 1.1200 through 1.1216 of the 
Commission's rules. 47 U.S.C. 151, 152, 154(i) through (j), 201 through 
205, 214, 254, 403; 47 CFR 1.1, 1.411 through 1.419, 1.1200 through 
1.1216.

[[Page 11590]]

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

    16. The RFA directs agencies to provide a description of, and, 
where feasible, an estimate of the number of small entities that may be 
affected by the rules, if adopted. 5 U.S.C. 604(a)(3). The RFA 
generally defines the term ``small entity,'' 5 U.S.C. 601(6), as having 
the same meaning as the terms ``small business,'' 5 U.S.C. 601(3), 
``small organization,'' 5 U.S.C. 601(4), and ``small governmental 
jurisdiction.'' 5 U.S.C. 601(5). In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act, unless the Commission has developed one 
or more definitions that are appropriate to its activities. 5 U.S.C. 
601(3). Under the Small Business Act, a ``small business concern'' is 
one that: (1) Is independently owned and operated; (2) is not dominant 
in its field of operation; and (3) meets any additional criteria 
established by the Small Business Administration (SBA). 15 U.S.C. 632. 
Nationwide, there are a total of approximately 22.4 million small 
businesses, according to SBA data. A small organization is generally 
``any not-for-profit enterprise which is independently owned and 
operated and is not dominant in its field.'' 5 U.S.C. 601(4). 
Nationwide, as of 2002, there were approximately 1.6 million small 
organizations.
    17. The most reliable source of information regarding the total 
numbers of certain common carrier and related providers nationwide, as 
well as the number of commercial wireless entities, is the data that 
the Commission publishes in its Trends in Telephone Service report. The 
SBA has developed small business size standards for wireline and 
wireless small businesses within the three commercial census categories 
of Wired Telecommunications Carriers, Paging, and Cellular and Other 
Wireless Telecommunications. 13 CFR 121.201. Under these categories, a 
business is small if it has 1,500 or fewer employees. Below, using the 
above size standards and others, we discuss the total estimated numbers 
of small businesses that might be affected by our actions.

Wireline Carriers and Service Providers

    18. We have included small incumbent local exchange carriers (LECs) 
in this present RFA analysis. As noted above, a ``small business'' 
under the RFA is one that, inter alia, meets the pertinent small 
business size standard (e.g., a telephone communications business 
having 1,500 or fewer employees), and ``is not dominant in its field of 
operation.'' 15 U.S.C. 632. The SBA's Office of Advocacy contends that, 
for RFA purposes, small incumbent LECs are not dominant in their field 
of operation because any such dominance is not ``national'' in scope. 
We have therefore included small incumbent LECs in this RFA analysis, 
although we emphasize that this RFA action has no effect on Commission 
analyses and determinations in other, non-RFA contexts.
    19. Incumbent LECs. Neither the Commission nor the SBA has 
developed a size standard for small businesses specifically applicable 
to incumbent LECs. The closest applicable size standard under SBA rules 
is for Wired Telecommunications Carriers. Under that size standard, 
such a business is small if it has 1,500 or fewer employees. 13 CFR 
121.201. According to Commission data, 1,307 carriers reported that 
they were engaged in the provision of local exchange services. Of these 
1,307 carriers, an estimated 1,019 have 1,500 or fewer employees, and 
288 have more than 1,500 employees. Consequently, the Commission 
estimates that most providers of incumbent local exchange service are 
small businesses that may be affected by our action.
    20. Competitive LECs, 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. 13 CFR 121.201. According 
to Commission data, 859 carriers reported that they were engaged in the 
provision of either competitive LEC or CAP services. Of these 859 
carriers, an estimated 741 have 1,500 or fewer employees, and 118 have 
more than 1,500 employees. In addition, 16 carriers have reported that 
they are ``Shared-Tenant Service Providers,'' and all 16 are estimated 
to have 1,500 or fewer employees. In addition, 44 carriers have 
reported that they are ``Other Local Service Providers.'' Of the 44, an 
estimated 43 have 1,500 or fewer employees, and one has more than 1,500 
employees. Consequently, the Commission estimates that most competitive 
LECs, CAPs, ``Shared-Tenant Service Providers,'' and ``Other Local 
Service Providers'' are small entities that may be affected by our 
action.

Wireless Carriers and Service Providers

    21. 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.'' 13 CFR 121.201. 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. Of this total, 804 firms had employment of 999 or 
fewer employees, and three firms had employment of 1,000 employees or 
more. Thus, under this category and associated small business size 
standard, the majority of firms can be considered small. For the census 
category 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. Of this total, 1,378 firms had 
employment of 999 or fewer employees, and 19 firms had employment of 
1,000 employees or more. Thus, under this second category and size 
standard, the majority of firms can, again, be considered small.
    22. 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. 13 CFR 121.201. Under that SBA small 
business size standard, a business is small if it has 1,500 or fewer 
employees. According to Commission data, 432 carriers reported that 
they were engaged in the provision of wireless telephony. We have 
estimated that 221 of these are small under the SBA small business size 
standard.

Satellite Service Providers

    23. Satellite Telecommunications and Other Telecommunications. 
There is no small business size standard developed specifically for 
providers of international service. The appropriate size standards 
under SBA rules are for the two broad census categories of ``Satellite 
Telecommunications'' and ``Other Telecommunications.'' Under both 
categories, such a business is small if it has $13.5 million or less in 
average annual receipts. 13 CFR 121.201.
    24. The first category of Satellite Telecommunications ``comprises 
establishments primarily engaged in

[[Page 11591]]

providing point-to-point telecommunications services to other 
establishments in the telecommunications and broadcasting industries by 
forwarding and receiving communications signals via a system of 
satellites or reselling satellite telecommunications.'' For this 
category, Census Bureau data for 2002 show that there were a total of 
371 firms that operated for the entire year. Of this total, 307 firms 
had annual receipts of under $10 million, and 26 firms had receipts of 
$10 million to $24,999,999. Consequently, we estimate that the majority 
of Satellite Telecommunications firms are small entities that might be 
affected by our action.
    25. The second category of Other Telecommunications ``comprises 
establishments primarily engaged in (1) providing specialized 
telecommunications applications, such as satellite tracking, 
communications telemetry, and radar station operations; or (2) 
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.'' For this category, Census 
Bureau data for 2002 show that there were a total of 332 firms that 
operated for the entire year. Of this total, 259 firms had annual 
receipts of under $10 million and 15 firms had annual receipts of $10 
million to $24,999,999. Consequently, we estimate that the majority of 
Other Telecommunications firms are small entities that might be 
affected by our action.

Description of Projected Reporting, Recordkeeping, and Other Compliance 
Requirements

    26. This NPRM seeks comment on ways to reform the high-cost 
universal service program. Specifically, the NPRM seeks comment on the 
recommendation of the Joint Board regarding comprehensive reform of 
high-cost universal service support. The Joint Board recommended the 
creation of three distinct high-cost funds; a broadband fund, a 
mobility fund, and a provider of last resort fund. If the Commission 
ultimately adopts the Joint Board's recommendations, new or additional 
reporting requirements may be required for carriers to receive support 
under a three-fund approach. Additionally, the NPRM incorporates by 
reference two NPRMs addressing the adoption of a reverse auctions 
approach for distributing high-cost support, and the elimination of the 
identical support rule for competitive eligible telecommunications 
carriers. Projected reporting, recordkeeping, and other compliance 
requirements are discussed in the IRFAs of those NPRMs.

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

    27. 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 and 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 part thereof, for small 
entities. 5 U.S.C. 603(c).
    28. This NPRM seeks comment on ways to reform the high-cost 
universal service program, including recommendations issued by the 
Joint Board. The Commission expects to consider the economic impact on 
small entities, as identified in comments filed in response to the 
NPRM, in reaching its final conclusions and taking action in this 
proceeding. To the degree that the other NPRMs that the NPRM includes 
by reference offer alternatives that may minimize the significant 
economic impact on small entities, those alternatives will be 
considered as well.

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

    29. None.

Ordering Clauses

    30. Accordingly, it is ordered that, pursuant to the authority 
contained in sections 1, 2, 4(i), 4(j), 201 through 205, 214, 254, and 
403 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 
154(i) through (j), 201 through 205, 214, 254, 403 and Sec. Sec.  1.1, 
1.411 through 1.419, and 1.1200 through 1.1216 of the Commission's 
rules, 47 CFR 1.1, 1.411 through 1.419, 1.1200 through 1.1216, this 
Notice of Proposed Rulemaking Is Adopted.
    31. 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. E8-4143 Filed 3-3-08; 8:45 am]
BILLING CODE 6712-01-P