[Federal Register Volume 73, Number 128 (Wednesday, July 2, 2008)]
[Rules and Regulations]
[Pages 37861-37869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-14874]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1 and 43

[WC Docket No. 07-38; FCC 08-148]


Development of Nationwide Broadband Data To Evaluate Reasonable 
and Timely Deployment of Advanced Services to All Americans, 
Improvement of Wireless Broadband Subscribership Data, and Development 
of Data on Interconnected Voice Over Internet Protocol (VoIP) 
Subscribership

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In the Order on Reconsideration (Order), the Federal 
Communications Commission (Commission) amends the FCC Form 477 data 
collection to collect additional data on broadband service 
subscriptions. The Commission modifies Form 477 to require broadband 
providers to report the percentage of broadband connections in service 
that are residential.

DATES: The requirements in this document contain information collection 
requirements that have not been approved by the Office of Management 
and Budget (OMB). The Commission will publish a document in the Federal 
Register announcing the effective date.

FOR FURTHER INFORMATION CONTACT: Alan Feldman, Wireline Competition 
Bureau, Industry Analysis and Technology Division, (202) 418-0940.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order 
on Reconsideration in WC Docket No. 07-38, adopted on June 11, 2008, 
and released on June 12, 2008. The complete text of this Order on 
Reconsideration is available for public inspection Monday through 
Thursday from 8 a.m. to 4:30 p.m. and Friday from 8 a.m. to 11:30 a.m. 
in the Commission's Consumer and Governmental Affairs Bureau, Reference 
Information Center, Room CY-A257, 445 12th Street, SW., Washington, DC 
20554. The complete text is available also on the Commission's Internet 
site at http://www.fcc.gov. Alternative formats are available for 
persons with disabilities by contacting the Consumer and Governmental 
Affairs Bureau, at (202) 418-0531, TTY (202) 418-7365, or at 
[email protected]. The complete text of the decision may be purchased from 
the Commission's duplicating contractor, Best Copying and Printing, 
Inc., Room CY-B402, 445 12th Street, SW., Washington, DC 20554, 
telephone (202) 488-5300, facsimile (202) 488-5563, TTY (202) 488-5562, 
or e-mail at [email protected].

Synopsis of Order on Reconsideration

    1. On June 12, 2008, the Commission released Development of 
Nationwide Broadband Data to Evaluate Reasonable and Timely Deployment 
of Advanced Services to All Americans, Improvement of Wireless 
Broadband Subscribership Data, and Development of Data on 
Interconnected Voice over Internet Protocol (VoIP) Subscribership, WC 
Docket No. 07-38, Report and Order and Further Notice of Proposed 
Rulemaking, FCC 08-89 (Form 477 Order) (published elsewhere in this 
issue). Pursuant to section 1. 108 of the Commission's rules, 47 CFR 1. 
108, the Commission reconsiders on its own motion the reporting 
requirements of Form 477 as adopted by the Form 477 Order. In 
particular, the Commission expands the Form 477 Order's broadband 
connecting reporting requirement to also require reporting of the 
percentage of residential broadband connections.
    2. While comments in the record for the Form 477 Order show support 
for distinguishing residential services from business services, the 
Commission maintained the pre-existing requirement to report the 
percentage of residential broadband connections at the state level. On 
May 13, 2008, after the Commission adopted the Form 477 Order, 
representatives from AT&T and Free Press met with the Commission to 
discuss the feasibility of extending the existing requirement that 
providers report state-wide percentages of residential lines to the 
Census Tract level. These parties proposed an approach that, subject to 
certain assumptions, would enable reporting of the percentage of 
residential broadband connections at the Census Tract level. The 
Commission finds that proposed approach reasonable, and therefore 
adopts such a requirement, as discussed below.
    3. On reconsideration, the Commission concludes that extending the 
existing residential percentage reporting requirement will improve its 
understanding of the scope of broadband deployment and will assist the 
Commission's ongoing efforts to foster increased deployment of 
broadband services to residential customers in accordance with the 
Commission's obligation under section 706 of the Telecommunications Act 
of 1996, to an extent that outweighs the cost to providers. The 
Commission therefore requires wired, terrestrial fixed wireless, and 
satellite broadband service providers to report, for each Census Tract 
and each speed tier in which the provider offers service, the number of 
subscribers and the percentage of subscribers that are residential. For 
terrestrial mobile wireless broadband service providers, which only 
report broadband connection at the state level under the Form 477 Order 
as adopted, the Commission does not modify the obligation for such 
providers to report percentage of residential broadband connections at 
the state level. As in the Form 477 Order, the Commission finds that 
granting a blanket exemption to small carriers would undercut the 
benefits of the revised information collection by depriving the 
Commission and other parties of adequate information on broadband 
deployment and adoption in rural, unserved, and underserved areas of 
the nation, the areas where additional information is most needed and 
would be likely to have the greatest impact. Additionally, the 
Commission notes that all Form 477 filers must currently submit, for 
each state in which they provide service, the percentage of their 
broadband subscribers that are residential. The Commission concludes 
that any incremental burden associated with providing this information 
on the Census Tract basis is outweighed by the utility of the data the 
Commission will obtain. The Commission thus applies the revised 
requirement to all broadband service providers, regardless of size. 
However, we note that the Form 477 Order created an alternative form of 
reporting this information which we retain but modify slightly here. 
See Form 477 Order, paras. 15, 32. Upon a showing of significant 
hardship, reporting entities may report a list of service addresses or 
GIS coordinates of service, along with the speed and technology of 
service offered at each address and whether the subscriber at that 
service address is a residential or business subscriber, in lieu of the 
requirement to report subscriber counts

[[Page 37862]]

and percentage residential by Census Tract and speed tier.

Paperwork Reduction Act of 1995 Analysis

    4. This Order on Reconsideration contains proposed new and modified 
information collection requirements. The Commission, as part of its 
continuing effort to reduce paperwork burdens, invites the general 
public and the Office of Management and Budget to comment on the 
information collection requirements contained in this document, as 
required by the Paperwork Reduction Act of 1995, Pub. L. 104-13. In 
addition, pursuant to the Small Business Paperwork Relief Act of 2002, 
Pub. L. 107-198, see 44 U.S.C. 3506(c)(4), the Commission seeks 
specific comment on how it might ``further reduce the information 
collection burden for small business concerns with fewer than 25 
employees.''

Legal Basis

    5. The legal basis for any action that may be taken pursuant to the 
Order on Reconsideration is contained in Sections 1 through 5, 10, 11, 
201 through 205, 215, 218 through 220, 251 through 271, 303(r), 332, 
403, 502, and 503 of the Communications Act of 1934, as amended, 47 
U.S.C. 151 through 155, 160, 161, 201 through 205, 215, 218 through 
220, 251 through 271, 303(r), 332, 403, 502, and 503, and Section 706 
of the Telecommunications Act of 1996, 47 U.S.C. 157 nt.

Supplemental Final Regulatory Flexibility Analysis

    6. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the Development of Nationwide Broadband Data to 
Evaluate Reasonable and Timely Deployment of Advanced Services to All 
Americans, Improvement of Wireless Broadband Subscribership Data, and 
Development of Data on Interconnected Voice over Internet Protocol 
(VoIP) Subscribership, WC Docket No. 07-38, Notice of Proposed 
Rulemaking, 22 FCC Rcd 7760, 7765-66, paras. 10-12, 22 (2007) (Data 
Gathering Notice). The Commission sought written public comment on the 
proposals in the Data Gathering Notice, including comment on the IRFA. 
A Final Regulatory Flexibility Analysis (FRFA) was adopted in 
conjunction with the Commission's Form 477 Order. This present 
Supplemental FRFA conforms to the RFA, and addresses the new 
requirements adopted in this Order on Reconsideration (Order).

Need for, and Objectives of, the Order

    7. In the Order, the Commission adopted certain changes to Form 477 
to collect additional, improved data on broadband availability and use. 
The Commission expanded the FCC Form 477 data collection adopted in the 
Form 477 Order to collect additional data on the percentage of 
residential broadband service subscriptions. These changes will greatly 
improve the ability of the Commission to understand the extent of 
broadband deployment, and will enable the Commission to continue to 
develop and maintain appropriate broadband policies, in particular to 
carry out its obligation under section 706 of the Telecommunications 
Act of 1996 to ``determine whether advanced telecommunications 
capability is being deployed to all Americans in a reasonable and 
timely fashion.''

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

    8. In the Form 477 Order, and accompanying FRFA, the Commission 
discussed the significant issues raised in response to public comments 
on the IRFA.

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

    9. The RFA directs agencies to provide a description of, and, where 
feasible, an estimate of, the number of small entities that may be 
affected by the rules adopted herein. The RFA generally defines the 
term ``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A ``small business concern'' is one which: (1) Is independently 
owned and operated; (2) is not dominant in its field of operation; and 
(3) satisfies any additional criteria established by the Small Business 
Administration (SBA).

Wireline Carriers and Service Providers

    10. Incumbent Local Exchange Carriers (ILECs). Neither the 
Commission nor the SBA has developed a size standard for small 
businesses specifically applicable to incumbent local exchange 
services. The closest applicable size standard under SBA rules is for 
Wired Telecommunications Carriers. Under that size standard, such a 
business is small if it has 1,500 or fewer employees. According to 
Commission data, 1,307 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 its action.
    11. Competitive Local Exchange Carriers (CLECs), Competitive Access 
Providers (CAPs), ``Shared-Tenant Service Providers,'' and ``Other 
Local Service Providers.'' Neither the Commission nor the SBA has 
developed a small business size standard specifically for these service 
providers. The appropriate size standard under SBA rules is for the 
category Wired Telecommunications Carriers. Under that size standard, 
such a business is small if it has 1,500 or fewer employees. According 
to Commission data, 859 carriers reported that they were engaged in the 
provision of either competitive local exchange carrier or competitive 
access provider 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 providers of competitive local 
exchange service, competitive access providers, ``Shared-Tenant Service 
Providers,'' and ``Other Local Service Providers'' are small entities 
that may be affected by its action.
    12. The Commission has included small incumbent local exchange 
carriers (LECs) in this present RFA analysis. As noted above, a ``small 
business'' under the RFA is one that, inter alia, meets the pertinent 
small business size standard (e.g., a telephone communications business 
having 1,500 or fewer employees), and ``is not dominant in its field of 
operation.'' The SBA's Office of Advocacy contends that, for RFA 
purposes, small incumbent LECs are not dominant in their field of 
operation because any such dominance is not ``national'' in scope. The 
Commission has therefore included small incumbent LECs in this RFA 
analysis, although it emphasizes that this RFA action has no effect on 
Commission analyses and determinations in other, non-RFA contexts.
    13. Local Resellers. The SBA has developed a small business size

[[Page 37863]]

standard for the category of Telecommunications Resellers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees. According to Commission data, 184 carriers have reported 
that they are engaged in the provision of local resale services. Of 
these, an estimated 181 have 1,500 or fewer employees and three have 
more than 1,500 employees. Consequently, the Commission estimates that 
the majority of local resellers are small entities that may be affected 
by its action.
    14. Toll Resellers. The SBA has developed a small business size 
standard for the category of Telecommunications Resellers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees. According to Commission data, 881 carriers have reported 
that they are engaged in the provision of toll resale services. Of 
these, an estimated 853 have 1,500 or fewer employees and 28 have more 
than 1,500 employees. Consequently, the Commission estimates that the 
majority of toll resellers are small entities that may be affected by 
its action.
    15. Payphone Service Providers (PSPs). Neither the Commission nor 
the SBA has developed a small business size standard specifically for 
payphone services providers. The appropriate size standard under SBA 
rules is for the category Wired Telecommunications Carriers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees. According to Commission data, 657 carriers have reported 
that they are engaged in the provision of payphone services. Of these, 
an estimated 653 have 1,500 or fewer employees and four have more than 
1,500 employees. Consequently, the Commission estimates that the 
majority of payphone service providers are small entities that may be 
affected by its action.
    16. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA has developed a size standard for small businesses specifically 
applicable to interexchange services. The closest applicable size 
standard under SBA rules is for Wired Telecommunications Carriers. 
Under that size standard, such a business is small if it has 1,500 or 
fewer employees. According to Commission data, 330 companies reported 
that their primary telecommunications service activity was the 
provision of interexchange services. Of these 330 companies, an 
estimated 309 have 1,500 or fewer employees and 21 have more than 1,500 
employees. Consequently, the Commission estimates that the majority of 
interexchange service providers are small entities that may be affected 
by its action.
    17. Operator Service Providers (OSPs). Neither the Commission nor 
the SBA has developed a small business size standard specifically for 
operator service providers. The appropriate size standard under SBA 
rules is for the category Wired Telecommunications Carriers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees. According to Commission data, 23 carriers have reported that 
they are engaged in the provision of operator services. Of these, an 
estimated 22 have 1,500 or fewer employees and one has more than 1,500 
employees. Consequently, the Commission estimates that the majority of 
OSPs are small entities that may be affected by its action.
    18. Prepaid Calling Card Providers. Neither the Commission nor the 
SBA has developed a small business size standard specifically for 
prepaid calling card providers. The appropriate size standard under SBA 
rules is for the category Telecommunications Resellers. Under that size 
standard, such a business is small if it has 1,500 or fewer employees. 
According to Commission data, 104 carriers have reported that they are 
engaged in the provision of prepaid calling cards. Of these, an 
estimated 102 have 1,500 or fewer employees and two have more than 
1,500 employees. Consequently, the Commission estimates that the 
majority of prepaid calling card providers are small entities that may 
be affected by its action.
    19. 800 and 800-Like Service Subscribers. Neither the Commission 
nor the SBA has developed a small business size standard specifically 
for 800 and 800-like service (``toll free'') subscribers. The 
appropriate size standard under SBA rules is for the category 
Telecommunications Resellers. Under that size standard, such a business 
is small if it has 1,500 or fewer employees. The most reliable source 
of information regarding the number of these service subscribers 
appears to be data the Commission collects on the 800, 888, 877, and 
866 numbers in use. According to the Commission's data, at the 
beginning of July 2006, the number of 800 numbers assigned was 
7,647,941; the number of 888 numbers assigned was 5,318,667; the number 
of 877 numbers assigned was 4,431,162; and the number of 866 numbers 
assigned was 6,008,976. The Commission does not have data specifying 
the number of these subscribers that are not independently owned and 
operated or have more than 1,500 employees, and thus are unable at this 
time to estimate with greater precision the number of toll free 
subscribers that would qualify as small businesses under the SBA size 
standard. Consequently, the Commission estimates that there are 
7,647,941 or fewer small entity 800 subscribers; 5,318,667 or fewer 
small entity 888 subscribers; 4,431,162 or fewer small entity 877 
subscribers; and 5,318,667 or fewer small entity 866 subscribers.

Wireless Carriers and Service Providers

    20. Below, for those services subject to auctions, the Commission 
notes that, as a general matter, the number of winning bidders that 
qualify as small businesses at the close of an auction does not 
necessarily represent the number of small businesses currently in 
service. Also, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated.
    21. Wireless Telecommunications Carriers (except Satellite). Since 
2007, the SBA has recognized wireless firms within this new, broad, 
economic census category. Prior to that time, the SBA had developed a 
small business size standard for wireless firms within the now-
superseded census categories of ``Paging'' and ``Cellular and Other 
Wireless Telecommunications.'' Under the present and prior categories, 
the SBA has deemed a wireless business to be small if it has 1,500 or 
fewer employees. Because Census Bureau data are not yet available for 
the new category, the Commission will estimate small business 
prevalence using the prior categories and associated data. For the 
first category of Paging, data for 2002 show that there were 807 firms 
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. For the second category of Cellular and Other 
Wireless Telecommunications, data for 2002 show that there were 1,397 
firms 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, using the prior categories and the 
available data, the Commission estimates that the majority of wireless 
firms can be considered small. According to Commission data, 432 
carriers reported that they were engaged in the provision of cellular 
service, Personal Communications Service (PCS), or Specialized Mobile 
Radio (SMR) Telephony services, which are placed together in the data. 
The

[[Page 37864]]

Commission estimates that 221 of these are small, under the SBA small 
business size standard. Thus, under this category and size standard, 
about half of firms can be considered small.
    22. Common Carrier Paging. The SBA has developed a small business 
size standard for Paging, under which a business is small if it has 
1,500 or fewer employees. According to Commission data, 365 carriers 
have reported that they are engaged in Paging or Messaging Service. Of 
these, an estimated 360 have 1,500 or fewer employees, and 5 have more 
than 1,500 employees. Consequently, the Commission estimates that the 
majority of paging providers are small entities that may be affected by 
its action. In addition, in the Paging Third Report and Order, the 
Commission developed a small business size standard for ``small 
businesses'' and ``very small businesses'' for purposes of determining 
their eligibility for special provisions such as bidding credits and 
installment payments. A ``small business'' is an entity that, together 
with its affiliates and controlling principals, has average gross 
revenues not exceeding $15 million for the preceding three years. 
Additionally, a ``very small business'' is an entity that, together 
with its affiliates and controlling principals, has average gross 
revenues that are not more than $3 million for the preceding three 
years. The SBA has approved these small business size standards. An 
auction of Metropolitan Economic Area licenses commenced on February 
24, 2000, and closed on March 2, 2000. Of the 985 licenses auctioned, 
440 were sold. Fifty-seven companies claiming small business status 
won.
    23. Wireless Communications Services. This service can be used for 
fixed, mobile, radiolocation, and digital audio broadcasting satellite 
uses. The Commission established small business size standards for the 
wireless communications services (WCS) auction. A ``small business'' is 
an entity with average gross revenues of $40 million for each of the 
three preceding years, and a ``very small business'' is an entity with 
average gross revenues of $15 million for each of the three preceding 
years. The SBA has approved these small business size standards. The 
Commission auctioned geographic area licenses in the WCS service. In 
the auction, held in April 1997, there were seven winning bidders that 
qualified as ``very small business'' entities, and one that qualified 
as a ``small business'' entity.
    24. Wireless Telephony. Wireless telephony includes cellular, 
personal communications services (PCS), and specialized mobile radio 
(SMR) telephony carriers. As noted earlier, the SBA has developed a 
small business size standard for ``Cellular and Other Wireless 
Telecommunications'' services. Under that SBA small business size 
standard, a business is small if it has 1,500 or fewer employees. 
According to Commission data, 432 carriers reported that they were 
engaged in the provision of wireless telephony. The Commission has 
estimated that 221 of these are small under the SBA small business size 
standard.
    25. Broadband Personal Communications Service. The broadband 
Personal Communications Service (PCS) spectrum is divided into six 
frequency blocks designated A through F, and the Commission has held 
auctions for each block. The Commission defined ``small entity'' for 
Blocks C and F as an entity that has average gross revenues of $40 
million or less in the three previous calendar years. For Block F, an 
additional classification for ``very small business'' was added and is 
defined as an entity that, together with its affiliates, has average 
gross revenues of not more than $15 million for the preceding three 
calendar years. These standards defining ``small entity'' in the 
context of broadband PCS auctions have been approved by the SBA. No 
small businesses, within the SBA-approved small business size standards 
bid successfully for licenses in Blocks A and B. There were 90 winning 
bidders that qualified as small entities in the Block C auctions. A 
total of 93 small and very small business bidders won approximately 40 
percent of the 1,479 licenses for Blocks D, E, and F. On March 23, 
1999, the Commission re-auctioned 347 C, D, E, and F Block licenses. 
There were 48 small business winning bidders. On January 26, 2001, the 
Commission completed the auction of 422 C and F Broadband PCS licenses 
in Auction No. 35. Of the 35 winning bidders in this auction, 29 
qualified as ``small'' or ``very small'' businesses. Subsequent events, 
concerning Auction 35, including judicial and agency determinations, 
resulted in a total of 163 C and F Block licenses being available for 
grant.
    26. Narrowband Personal Communications Services. To date, two 
auctions of narrowband personal communications services (PCS) licenses 
have been conducted. For purposes of the two auctions that have already 
been held, ``small businesses'' were entities with average gross 
revenues for the prior three calendar years of $40 million or less. 
Through these auctions, the Commission has awarded a total of 41 
licenses, out of which 11 were obtained by small businesses. To ensure 
meaningful participation of small business entities in future auctions, 
the Commission has adopted a two-tiered small business size standard in 
the Narrowband PCS Second Report and Order. A ``small business'' is an 
entity that, together with affiliates and controlling interests, has 
average gross revenues for the three preceding years of not more than 
$40 million. A ``very small business'' is an entity that, together with 
affiliates and controlling interests, has average gross revenues for 
the three preceding years of not more than $15 million. The SBA has 
approved these small business size standards. In the future, the 
Commission will auction 459 licenses to serve Metropolitan Trading 
Areas (MTAs) and 408 response channel licenses. There is also one 
megahertz of narrowband PCS spectrum that has been held in reserve and 
that the Commission has not yet decided to release for licensing. The 
Commission cannot predict accurately the number of licenses that will 
be awarded to small entities in future actions. However, four of the 16 
winning bidders in the two previous narrowband PCS auctions were small 
businesses, as that term was defined under the Commission's Rules. The 
Commission assumes, for purposes of this analysis, that a large portion 
of the remaining narrowband PCS licenses will be awarded to small 
entities. The Commission also assumes that at least some small 
businesses will acquire narrowband PCS licenses by means of the 
Commission's partitioning and disaggregation rules.
    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 
small business size standard for small entities specifically applicable 
to such incumbent 220 MHz Phase I licensees. To estimate the number of 
such licensees that are small businesses, the Commission applies the 
small business size standard under the SBA rules applicable to 
``Cellular and Other Wireless Telecommunications'' companies. Under 
this category, the SBA deems a wireless business to be small if it has 
1,500 or fewer employees. The Commission estimates that nearly all such 
licensees are small businesses under the SBA's small business size 
standard.
    28. 220 MHz Radio Service--Phase II Licensees. The 220 MHz service 
has

[[Page 37865]]

both Phase I and Phase II licenses. The Phase II 220 MHz service is a 
new service, and is subject to spectrum auctions. In the 220 MHz Third 
Report and Order, the Commission adopted a small business size standard 
for ``small'' and ``very small'' businesses for purposes of determining 
their eligibility for special provisions such as bidding credits and 
installment payments. This small business size standard indicates that 
a ``small business'' is an entity that, together with its affiliates 
and controlling principals, has average gross revenues not exceeding 
$15 million for the preceding three years. A ``very small business'' is 
an entity that, together with its affiliates and controlling 
principals, has average gross revenues that do not exceed $3 million 
for the preceding three years. The SBA has approved these small 
business size standards. Auctions of Phase II licenses commenced on 
September 15, 1998, and closed on October 22, 1998. In the first 
auction, 908 licenses were auctioned in three different-sized 
geographic areas: Three nationwide licenses, 30 Regional Economic Area 
Group (EAG) Licenses, and 875 Economic Area (EA) Licenses. Of the 908 
licenses auctioned, 693 were sold. Thirty-nine small businesses won 
licenses in the first 220 MHz auction. The second auction included 225 
licenses: 216 EA licenses and 9 EAG licenses. Fourteen companies 
claiming small business status won 158 licenses.
    29. 800 MHz and 900 MHz Specialized Mobile Radio Licenses. The 
Commission awards ``small entity'' and ``very small entity'' bidding 
credits in auctions for Specialized Mobile Radio (SMR) geographic area 
licenses in the 800 MHz and 900 MHz bands to firms that had revenues of 
no more than $15 million in each of the three previous calendar years, 
or that had revenues of no more than $3 million in each of the previous 
calendar years, respectively. These bidding credits apply to SMR 
providers in the 800 MHz and 900 MHz bands that either hold geographic 
area licenses or have obtained extended implementation authorizations. 
The Commission does not know how many firms provide 800 MHz or 900 MHz 
geographic area SMR service pursuant to extended implementation 
authorizations, nor how many of these providers have annual revenues of 
no more than $15 million. One firm has over $15 million in revenues. 
The Commission assumes, for purposes here, that all of the remaining 
existing extended implementation authorizations are held by small 
entities, as that term is defined by the SBA. The Commission has held 
auctions for geographic area licenses in the 800 MHz and 900 MHz SMR 
bands. There were 60 winning bidders that qualified as small or very 
small entities in the 900 MHz SMR auctions. Of the 1,020 licenses won 
in the 900 MHz auction, bidders qualifying as small or very small 
entities won 263 licenses. In the 800 MHz auction, 38 of the 524 
licenses won were won by small and very small entities.
    30. 700 MHz Guard Band Licensees. In the 700 MHz Guard Band Order, 
the Commission adopted a small business size standard for ``small 
businesses'' and ``very small businesses'' for purposes of determining 
their eligibility for special provisions such as bidding credits and 
installment payments. A ``small business'' 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. An auction of 52 Major Economic Area (MEA) licenses commenced on 
September 6, 2000, and closed on September 21, 2000. Of the 104 
licenses auctioned, 96 licenses were sold to nine bidders. Five of 
these bidders were small businesses that won a total of 26 licenses. A 
second auction of 700 MHz Guard Band licenses commenced on February 13, 
2001 and closed on February 21, 2001. All eight of the licenses 
auctioned were sold to three bidders. One of these bidders was a small 
business that won a total of two licenses.
    31. Rural Radiotelephone Service. The Commission has not adopted a 
size standard for small businesses specific to the Rural Radiotelephone 
Service. A significant subset of the Rural Radiotelephone Service is 
the Basic Exchange Telephone Radio System (BETRS). The Commission uses 
the SBA's small business size standard applicable to ``Cellular and 
Other Wireless Telecommunications,'' i.e., an entity employing no more 
than 1,500 persons. There are approximately 1,000 licensees in the 
Rural Radiotelephone Service, and the Commission estimates that there 
are 1,000 or fewer small entity licensees in the Rural Radiotelephone 
Service that may be affected by the rules and policies adopted herein.
    32. Air-Ground Radiotelephone Service. The Commission has not 
adopted a small business size standard specific to the Air-Ground 
Radiotelephone Service. 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. 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.
    33. Aviation and Marine Radio Services. Small businesses in the 
aviation and marine radio services use a very high frequency (VHF) 
marine or aircraft radio and, as appropriate, an emergency position-
indicating radio beacon (and/or radar) or an emergency locator 
transmitter. The Commission has not developed a small business size 
standard specifically applicable to these small businesses. For 
purposes of this analysis, the Commission uses the SBA small business 
size standard for the category ``Cellular and Other 
Telecommunications,'' which is 1,500 or fewer employees. Most 
applicants for recreational licenses are individuals. Approximately 
581,000 ship station licensees and 131,000 aircraft station licensees 
operate domestically and are not subject to the radio carriage 
requirements of any statute or treaty. For purposes of its evaluations 
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. 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. 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.
    34. Fixed Microwave Services. Fixed microwave services include 
common carrier, private operational-fixed, and broadcast auxiliary 
radio services. At present, there are approximately 22,015 common 
carrier fixed licensees and 61,670 private operational-fixed licensees 
and broadcast auxiliary radio licensees in the microwave services. The 
Commission has not created a size

[[Page 37866]]

standard for a small business specifically with respect to fixed 
microwave services. For purposes of this analysis, the Commission uses 
the SBA small business size standard for the category ``Cellular and 
Other Telecommunications,'' which is 1,500 or fewer employees. The 
Commission does not have data specifying the number of these licensees 
that have more than 1,500 employees, and thus is unable at this time to 
estimate with greater precision the number of fixed microwave service 
licensees that would qualify as small business concerns under the SBA's 
small business size standard. Consequently, the Commission estimates 
that there are up to 22,015 common carrier fixed licensees and up to 
61,670 private operational-fixed licensees and broadcast auxiliary 
radio licensees in the microwave services that may be small and may be 
affected by the rules and policies adopted herein. The Commission 
notes, however, that the common carrier microwave fixed licensee 
category includes some large entities.
    35. Offshore Radiotelephone Service. This service operates on 
several UHF television broadcast channels that are not used for 
television broadcasting in the coastal areas of states bordering the 
Gulf of Mexico. There are presently approximately 55 licensees in this 
service. 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. Under that SBA small business size standard, a business is 
small if it has 1,500 or fewer employees.
    36. 39 GHz Service. The Commission created a special small business 
size standard for 39 GHz licenses--an entity that has average gross 
revenues of $40 million or less in the three previous calendar years. 
An additional size standard for ``very small business'' is: an entity 
that, together with affiliates, has average gross revenues of not more 
than $15 million for the preceding three calendar years. The SBA has 
approved these small business size standards. The auction of the 2,173 
39 GHz licenses began on April 12, 2000 and closed on May 8, 2000. The 
18 bidders who claimed small business status won 849 licenses. 
Consequently, the Commission estimates that 18 or fewer 39 GHz 
licensees are small entities that may be affected by its action.
    37. Wireless Cable Systems. Wireless cable systems use 2 GHz band 
frequencies of the Broadband Radio Service (``BRS''), formerly 
Multipoint Distribution Service (``MDS''), and the Educational 
Broadband Service (``EBS''), formerly Instructional Television Fixed 
Service (``ITFS''), to transmit video programming and provide broadband 
services to residential subscribers. 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. The Commission estimates 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. 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. Other standards also apply, as described.
    38. The Commission has defined small MDS (now BRS) and LMDS 
entities in the context of Commission license auctions. In the 1996 MDS 
auction, 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. This definition of a small entity in the context 
of MDS auctions has been approved by the SBA. 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. 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 
Other Program Distribution. Information available to the Commission 
indicates that there are approximately 850 of these licensees and 
operators that do not generate revenue in excess of $13. 5 million 
annually. Therefore, the Commission estimates that there are 
approximately 850 small entity MDS (or BRS) providers, as defined by 
the SBA and the Commission's auction rules.
    39. 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). The Commission estimates 
that there are currently 2,032 ITFS (or EBS) licensees, and all but 100 
of the licenses are held by educational institutions. Thus, the 
Commission estimates that at least 1,932 ITFS licensees are small 
entities.
    40. In the 1998 and 1999 LMDS auctions, the Commission defined a 
small business as an entity that has annual average gross revenues of 
less than $40 million in the previous three calendar years. Moreover, 
the Commission added an additional classification for a ``very small 
business,'' which was defined as an entity that had annual average 
gross revenues of less than $15 million in the previous three calendar 
years. These definitions of ``small business'' and ``very small 
business'' in the context of the LMDS auctions have been approved by 
the SBA. In the first LMDS auction, 104 bidders won 864 licenses. Of 
the 104 auction winners, 93 claimed status as small or very small 
businesses. In the LMDS re-auction, 40 bidders won 161 licenses. Based 
on this information, the Commission believes that the number of small 
LMDS licenses will include the 93 winning bidders in the first auction 
and the 40 winning bidders in the re-auction, for a total of 133 small 
entity LMDS providers as defined by the SBA and the Commission's 
auction rules.
    41. 218-219 MHz Service. The first auction of 218-219 MHz spectrum 
resulted in 170 entities winning licenses for 594 Metropolitan 
Statistical Area (MSA) licenses. Of the 594 licenses, 557 were won by 
entities qualifying as a small business. For that auction, the small 
business size standard was an entity that, together with its 
affiliates, has no more than a $6 million net worth and, after federal 
income taxes (excluding any carry over losses), has no more than $2 
million in annual profits each year for the previous two years. In the 
218-219 MHz Report and Order and Memorandum Opinion and Order, 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. 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.

[[Page 37867]]

These size standards will be used in future auctions of 218-219 MHz 
spectrum.
    42. 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. 
The Commission believes that there are only two licensees in the 24 GHz 
band that were relocated from the 18 GHz band, Teligent and TRW, Inc. 
It is 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.
    43. 24 GHz--Future Licensees. With respect to new applicants in the 
24 GHz band, the small business size standard for ``small business'' is 
an entity that, together with controlling interests and affiliates, has 
average annual gross revenues for the three preceding years not in 
excess of $15 million. ``Very small business'' in the 24 GHz band is an 
entity that, together with controlling interests and affiliates, has 
average gross revenues not exceeding $3 million for the preceding three 
years. The SBA has approved these small business size standards. These 
size standards will apply to the future auction, if held.

Satellite Service Providers

    44. Satellite Telecommunications. Since 2007, the SBA has 
recognized satellite firms within this revised category, with a small 
business size standard of $13. 5 million. The most current Census 
Bureau data, however, are from the (last) economic census of 2002, and 
the Commission will use those figures to gauge the prevalence of small 
businesses in this category. Those size standards are for the two 
census categories of ``Satellite Telecommunications'' and ``Other 
Telecommunications.'' Under both prior categories, such a business was 
considered small if it had, as now, $13. 5 million or less in average 
annual receipts.
    45. The first category of Satellite Telecommunications ``comprises 
establishments primarily engaged in 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, the Commission estimates that the 
majority of Satellite Telecommunications firms are small entities that 
might be affected by its action.
    46. 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, 303 firms had annual 
receipts of under $10 million and 15 firms had annual receipts of $10 
million to $24,999,999. Consequently, the Commission estimates that the 
majority of Other Telecommunications firms are small entities that 
might be affected by its action.

Cable and OVS Operators

    47. In 2007, the SBA recognized new census categories for small 
cable entities. However, there is no census data yet in existence that 
may be used to calculate the number of small entities that fit these 
definitions. Therefore, the Commission will use prior definitions of 
these types of entities in order to estimate numbers of potentially-
affected small business entities. In addition to the estimates provided 
above, the Commission considers certain additional entities that may be 
affected by the data collection from broadband service providers. 
Because section 706 requires it to monitor the deployment of broadband 
regardless of technology or transmission media employed, the Commission 
anticipates that some broadband service providers will not provide 
telephone service. Accordingly, the Commission describes below other 
types of firms that may provide broadband services, including cable 
companies, MDS providers, and utilities, among others.
    48. Cable and Other Program Distribution. The Census Bureau defines 
this category as follows: ``This industry comprises establishments 
primarily engaged as third-party distribution systems for broadcast 
programming. The establishments of this industry deliver visual, aural, 
or textual programming received from cable networks, local television 
stations, or radio networks to consumers via cable or direct-to-home 
satellite systems on a subscription or fee basis. These establishments 
do not generally originate programming material.'' The SBA has 
developed a small business size standard for Cable and Other Program 
Distribution, which is: all such firms having $13. 5 million or less in 
annual receipts. According to Census Bureau data for 2002, there were a 
total of 1,191 firms in this category that operated for the entire 
year. Of this total, 1,087 firms had annual receipts of under $10 
million, and 43 firms had receipts of $10 million or more but less than 
$25 million. Thus, under this size standard, the majority of firms can 
be considered small.
    49. Cable Companies and Systems. The Commission has also developed 
its own small business size standards, for the purpose of cable rate 
regulation. Under the Commission's rules, a ``small cable company'' is 
one serving 400,000 or fewer subscribers, nationwide. Industry data 
indicate that, of 1,076 cable operators nationwide, all but eleven are 
small under this size standard. In addition, under the Commission's 
rules, a ``small system'' is a cable system serving 15,000 or fewer 
subscribers. Industry data indicate that, of 7,208 systems nationwide, 
6,139 systems have under 10,000 subscribers, and an additional 379 
systems have 10,000-19,999 subscribers. Thus, under this second size 
standard, most cable systems are small.
    50. Cable System Operators. The Communications Act of 1934, as 
amended, also contains a size standard for small cable system 
operators, which is ``a cable operator that, directly or through an 
affiliate, serves in the aggregate fewer than 1 percent of all 
subscribers in the United States and is not affiliated with any entity 
or entities whose gross annual revenues in the aggregate exceed 
$250,000,000.'' The Commission has determined that an operator serving 
fewer than 677,000 subscribers shall be deemed a small operator, if its 
annual revenues, when combined with the total annual revenues of all 
its affiliates, do not exceed $250 million in the aggregate. Industry 
data indicate that, of 1,076 cable operators nationwide, all but ten 
are small under this size standard. The

[[Page 37868]]

Commission notes that it neither requests nor collects information on 
whether cable system operators are affiliated with entities whose gross 
annual revenues exceed $250 million, and therefore it is unable to 
estimate more accurately the number of cable system operators that 
would qualify as small under this size standard.
    51. Open Video Services. Open Video Service (OVS) systems provide 
subscription services. As noted above, the SBA has created a small 
business size standard for Cable and Other Program Distribution. This 
standard provides that a small entity is one with $13. 5 million or 
less in annual receipts. The Commission has certified approximately 45 
OVS operators to serve 75 areas, and some of these are currently 
providing service. Affiliates of Residential Communications Network, 
Inc. (RCN) received approval to operate OVS systems in New York City, 
Boston, Washington, DC, and other areas. RCN has sufficient revenues to 
assure that they do not qualify as a small business entity. Little 
financial information is available for the other entities that are 
authorized to provide OVS and are not yet operational. Given that some 
entities authorized to provide OVS service have not yet begun to 
generate revenues, the Commission concludes that up to 44 OVS operators 
(those remaining) might qualify as small businesses that may be 
affected by the rules and policies adopted herein.

Electric Power Generation, Transmission and Distribution

    52. Electric Power Generation, Transmission and Distribution. The 
Census Bureau defines this category as follows: ``This industry group 
comprises establishments primarily engaged in generating, transmitting, 
and/or distributing electric power. Establishments in this industry 
group may perform one or more of the following activities: (1) Operate 
generation facilities that produce electric energy; (2) operate 
transmission systems that convey the electricity from the generation 
facility to the distribution system; and (3) operate distribution 
systems that convey electric power received from the generation 
facility or the transmission system to the final consumer.'' The SBA 
has developed a small business size standard for firms in this 
category: ``A firm is small if, including its affiliates, it is 
primarily engaged in the generation, transmission, and/or distribution 
of electric energy for sale and its total electric output for the 
preceding fiscal year did not exceed 4 million megawatt hours.'' 
According to Census Bureau data for 2002, there were 1,644 firms in 
this category that operated for the entire year. Census data do not 
track electric output and the Commission has not determined how many of 
these firms fit the SBA size standard for small, with no more than 4 
million megawatt hours of electric output. Consequently, the Commission 
estimates that 1,644 or fewer firms may be considered small under the 
SBA small business size standard.

Internet Service Providers, Web Portals, and Other Information Services

    53. In 2007, the SBA recognized two new small business, economic 
census categories. They are (1) Internet Publishing and Broadcasting 
and Web Search Portals, and (2) All Other Information Services. 
However, there is no census data yet in existence that may be used to 
calculate the number of small entities that fit these definitions. 
Therefore, the Commission will use prior definitions of these types of 
entities in order to estimate numbers of potentially-affected small 
business entities.
    54. Internet Service Providers. The SBA has developed a small 
business size standard for Internet Service Providers (ISPs). ISPs 
``provide clients access to the Internet and generally provide related 
services such as web hosting, web page designing, and hardware or 
software consulting related to Internet connectivity.'' Under the SBA 
size standard, such a business is small if it has average annual 
receipts of $23 million or less. According to Census Bureau data for 
2002, there were 2,529 firms in this category that operated for the 
entire year. 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 its 
action.

Other Internet-Related Entities

    55. Web Search Portals. The Commission's action pertains to 
interconnected VoIP services, which could be provided by entities that 
provide other services such as e-mail, online gaming, web browsing, 
video conferencing, instant messaging, and other, similar IP-enabled 
services. The Commission has not adopted a size standard for entities 
that create or provide these types of services or applications. 
However, the Census Bureau has identified firms that ``operate Web 
sites that use a search engine to generate and maintain extensive 
databases of Internet addresses and content in an easily searchable 
format. Web search portals often provide additional Internet services, 
such as e-mail, connections to other Web sites, auctions, news, and 
other limited content, and serve as a home base for Internet users.'' 
The SBA has developed a small business size standard for this category; 
that size standard is $6.5 million or less in average annual receipts. 
According to Census Bureau data for 2002, there were 342 firms in this 
category that operated for the entire year. Of these, 303 had annual 
receipts of under $5 million, and an additional 15 firms had receipts 
of between $5 million and $9,999,999. Consequently, the Commission 
estimates that the majority of these firms are small entities that may 
be affected by its action.
    56. Data Processing, Hosting, and Related Services. Entities in 
this category ``primarily * * * provid[e] infrastructure for hosting or 
data processing services.'' The SBA has developed a small business size 
standard for this category; that size standard is $23 million or less 
in average annual receipts. According to Census Bureau data for 2002, 
there were 6,877 firms in this category that operated for the entire 
year. Of these, 6,418 had annual receipts of under $10 million, and an 
additional 251 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 its action.
    57. All Other Information Services. ``This industry comprises 
establishments primarily engaged in providing other information 
services (except new syndicates and libraries and archives).'' The 
Commission's action pertains to interconnected VoIP services, which 
could be provided by entities that provide other services such as e-
mail, online gaming, web browsing, video conferencing, instant 
messaging, and other, similar IP-enabled services. The SBA has 
developed a small business size standard for this category; that size 
standard is $6.5 million or less in average annual receipts. According 
to Census Bureau data for 2002, there were 155 firms in this category 
that operated for the entire year. Of these, 138 had annual receipts of 
under $5 million, and an additional four firms had receipts of between 
$5 million and $9,999,999. Consequently, the Commission estimates that 
the majority of these firms are small entities that may be affected by 
its action.
    58. Internet Publishing and Broadcasting. ``This industry comprises 
establishments engaged in publishing and/or broadcasting content on the

[[Page 37869]]

Internet exclusively. These establishments do not provide traditional 
(non-Internet) versions of the content that they publish or 
broadcast.'' The SBA has developed a small business size standard for 
this census category; that size standard is 500 or fewer employees. 
According to Census Bureau data for 2002, there were 1,362 firms in 
this category that operated for the entire year. Of these, 1,351 had 
employment of 499 or fewer employees, and six firms had employment of 
between 500 and 999. Consequently, the Commission estimates that the 
majority of these firms are small entities that may be affected by its 
action.

Description of Projected Reporting, Recordkeeping and Other Compliance 
Requirements

    59. In today's Order, the Commission expands the requirements 
adopted in the Form 477 Order to require wired, terrestrial fixed 
wireless, and satellite broadband providers to report the percentage of 
residential broadband connections they have in service in individual 
Census Tracts. While both large and small entities will be subject to 
these reporting requirements, the task is comparably easier for smaller 
entities that provide service to fewer customers and in more 
concentrated geographic areas, as the reporting procedures are broken 
down by geographic region and type of service. Few skills beyond the 
basic accounting skills already required of Form 477 filers, including 
small entities, are required to comply with the new and modified 
reporting and recordkeeping requirements adopted in this Order.

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

    60. The RFA requires an agency to describe any significant 
alternatives that it has considered in developing its approach, which 
may include (among others) the following four alternatives: (1) The 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
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.
    61. In the Data Gathering Notice, the Commission invited comment on 
a variety of proposals that would impose further reporting and 
recordkeeping requirements, including alternatives to the measures 
taken in this Order. The Commission sought comment on whether there are 
any alternatives to the proposals in the order that would also serve 
the objective of improving broadband data collection, and the 
Commission invited comment on ways to mitigate the burden that might be 
imposed on small entities. The Commission sought comment on how the 
proposals might be tailored to mitigate the burden on smaller entities 
but nevertheless obtain data that would enable the Commission to 
determine whether subscribers in those territories have access to 
broadband services. To analyze the impact on small entities, the Data 
Gathering Notice asked whether entities maintain the required 
information in billing or marketing databases, and asked commenters to 
demonstrate the burden for the entities to collect and report this type 
of information.
    62. The Commission finds that the approach adopted in today's Order 
best balances the costs of information collection and the public 
interest benefits of more detailed information on broadband deployment. 
As in the Form 477 Order, the Commission finds that granting a blanket 
exemption to small carriers would undercut the benefits of the revised 
information collection by depriving the Commission and other parties of 
adequate information on broadband deployment and adoption in rural, 
unserved, and underserved areas of the nation, the areas where 
additional information is most needed and would be likely to have the 
greatest impact. Additionally, the Commission notes that all Form 477 
filers must currently submit, for each state in which they provide 
service, the percentage of their broadband subscribers that are 
residential. The Commission concludes that any incremental burden 
associated with providing this information on the Census Tract basis is 
outweighed by the utility of the data the Commission will obtain. The 
Commission thus applies the revised requirement to all broadband 
service providers, regardless of size.
    63. Report to Congress. The Commission will send a copy of the 
Order, including this FRFA, in a report to be sent to Congress pursuant 
to the Congressional Review Act. In addition, the Commission will send 
a copy of the Order, including this FRFA, to the Chief Counsel for 
Advocacy of the SBA. A copy of the Order and FRFA (or summaries 
thereof) will also be published in the Federal Register.

Ordering Clauses

    64. Accordingly, it is ordered that, pursuant to Sections 1 through 
5, 11, 201 through 205, 211, 215, 218 through 220, 251 through 271, 
303(r), 332, 403, 502, and 503 of the Communications Act of 1934, as 
amended, 47 U.S.C. 151 through 155, 161, 201 through 205, 211, 215, 218 
through 220, 251 through 271, 303(r), 332, 403, 502, and 503, and 
Section 706 of the Telecommunications Act of 1996, 47 U.S.C. 157 nt, 
this Order on Reconsideration, with all attachments, is adopted.
    65. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Order on Reconsideration, including the Supplemental Final 
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of 
the Small Business Administration.
    66. It is further ordered, pursuant to sections 1. 103(a) and 1. 
427(b) of the Commission's rules, 47 CFR 1. 103(a), 1. 427(b), that the 
Commission will publish a document in the Federal Register announcing 
the effective date.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
 [FR Doc. E8-14874 Filed 7-1-08; 8:45 am]
BILLING CODE 6712-01-P