[Federal Register Volume 80, Number 132 (Friday, July 10, 2015)]
[Proposed Rules]
[Pages 39722-39731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16323]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 79

[MB Docket No. 12-107; FCC 15-56]


Accessible Emergency Information, and Apparatus Requirements for 
Emergency Information and Video Description

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Commission seeks comments on issues 
related to making emergency information audibly accessible to 
individuals who are blind or visually impaired. Specifically, this 
document seeks comment on: How to prioritize aural emergency 
information on the secondary audio stream; whether to continue to 
require school closing information to be included aurally on the 
secondary audio stream; and whether to require MVPDs to ensure that the 
devices and applications they provide to subscribers include a simple 
and easy to use activation mechanism for accessing audible emergency 
information on the secondary audio stream.

DATES: Comments are due on or before August 10, 2015; reply comments 
are due on or before September 8, 2015.

ADDRESSES: You may submit comments, identified by MB Docket No. 12-107, 
by any of the following methods:
     Federal Communications Commission (FCC) Electronic Comment 
Filing System (ECFS) Web site: http://fjallfoss.fcc.gov/ecfs2/. Follow 
the instructions for submitting comments.
     Mail: U.S. Postal Service first-class, Express, and 
Priority mail must be addressed to the FCC Secretary, Office of the 
Secretary, Federal Communications Commission, 445 12th Street SW., 
Washington, DC 20554. 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.
     Hand or Messenger Delivery: All hand-delivered or 
messenger-delivered paper filings for the FCC Secretary must be 
delivered to FCC Headquarters at 445 12th Street SW., Room TW-A325, 
Washington, DC 20554.
     People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email: [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 section IV. ``Procedural 
Matters'' heading of the SUPPLEMENTARY INFORMATION section of this 
document.

FOR FURTHER INFORMATION CONTACT: Evan Baranoff, [email protected], 
of the Media Bureau, Policy Division, (202) 418-2120.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second 
Further Notice of Proposed Rulemaking (Second Further Notice), FCC 15-
56, adopted on May 21, 2015, and released on May 28, 2015. For 
background, see the summary of the Second Report and Order (Second 
Report and Order) accompanying the Second Further Notice published in 
this issue of the Federal Register. The full text of this document is 
available electronically via the FCC's Electronic Document Management 
System (EDOCS) Web site at http://fjallfoss.fcc.gov/edocs_public/ or 
via the FCC's Electronic Comment Filing System (ECFS) Web site at 
http://fjallfoss.fcc.gov/ecfs2/. (Documents will be available 
electronically in ASCII, Microsoft Word, and/or Adobe Acrobat.) This 
document is also available for public inspection and copying during 
regular business hours in the FCC Reference Information Center, Federal 
Communications Commission, 445 12th Street SW., CY-A257, Washington, 
DC, 20554. The complete text may be purchased from the Commission's 
copy contractor, 445 12th Street SW., Room CY-B402, Washington, DC 
20554. Alternative formats are available for people with disabilities 
(Braille, large print, electronic files, audio format), by sending an 
email to [email protected] or calling the Commission's Consumer and 
Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 
(TTY).

I. Introduction

    1. In this Second Further Notice of Proposed Rulemaking (``Second 
Further Notice''), we seek comment on three issues: (i) whether we 
should adopt rules regarding how covered entities should prioritize 
emergency information conveyed aurally on the secondary audio stream 
when more than one source of visual emergency information is presented 
on-screen at the same time; (ii) whether we should reconsider the 
Commission's requirement for ``school closings and changes in school 
bus schedules'' resulting from emergency situations to be conveyed 
aurally on the secondary audio stream, considering the length of such 
information and the limits of the secondary audio stream; and (iii) 
whether we should require MVPDs to ensure that the navigation devices 
that they provide to subscribers include a simple and easy to use 
activation mechanism for accessing audible emergency information on the 
secondary audio stream, and to provide a simple and easy to use 
mechanism to activate the secondary audio stream for emergency 
information when they permit subscribers to view linear programming on 
mobile and other devices as part of their MVPD services.

II. Discussion

A. Prioritization of Emergency Information on the Secondary Audio 
Stream

    2. We seek comment on how video programming providers and video 
programming distributors should prioritize emergency information 
conveyed aurally on the secondary audio stream when more than one 
source of visual emergency information is presented on-screen at the 
same time.

[[Page 39723]]

    3. Section 79.2(b)(2)(ii) of the Commission's rules requires that 
emergency information provided visually during programming that is 
neither a regularly scheduled newscast, nor a newscast that interrupts 
regular programming, must be made accessible to individuals who are 
blind or visually impaired through the use of a secondary audio stream 
to provide such information aurally.\1\ In the First Report and Order, 
the Commission specified that it would not require a verbatim aural 
translation of textual emergency information, but that the information 
presented aurally must accurately and effectively communicate to 
consumers who are blind or visually impaired the critical details about 
a current emergency and how to respond to it to the same extent that 
this information is conveyed textually.\2\ In addition, the Commission 
concluded that if visual but non-textual emergency information is shown 
during non-newscast programming, the aural description of this 
information must accurately and effectively convey the critical details 
regarding the emergency and how to respond to the emergency.\3\
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    \1\ 47 CFR 79.2(b)(2)(ii).
    \2\ Accessible Emergency Information; Apparatus Requirements for 
Emergency Information and Video Description: Implementation of the 
Twenty-First Century Communications and Video Accessibility Act of 
2010, MB Docket Nos. 12-107, 11-43, Report and Order, FCC 13-45, 78 
FR 31770, para. 23 (2013) (``First Report and Order''). ``Critical 
details include, but are not limited to, specific details regarding 
the areas that will be affected by the emergency, evacuation orders, 
detailed descriptions of areas to be evacuated, specific evacuation 
routes, approved shelters or the way to take shelter in one's home, 
instructions on how to secure personal property, road closures, and 
how to obtain relief assistance.'' Note to 47 CFR 79.2(a)(2).
    \3\ First Report and Order, para. 24 (further noting that, even 
if a broadcaster employs text-to-speech (``TTS'') technologies, the 
critical details of emergency information conveyed in a graphic 
display can be included in the text that will be converted to speech 
before the TTS conversion takes place).
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    4. In its recently-filed petition for temporary waiver of the 
emergency information rules, the National Association of Broadcasters 
(``NAB'') indicated that ``maps and other graphics almost always share 
the screen with other crawls'' and, thus, broadcasters may encounter an 
issue with how to prioritize these sources of emergency information on 
the secondary audio stream to ``ensur[e] that the most critical audible 
crawl reaches the public.'' \4\ We seek comment on this issue. To what 
extent do broadcasters show more than one crawl or a crawl and a 
graphic conveying visual emergency information at the same time? In 
this scenario, do the crawls and graphics being shown simultaneously 
typically convey information about the same emergency situation?
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    \4\ National Association of Broadcasters, Petition for Temporary 
Partial Exemption and Limited Waiver, MB Docket No. 12-107, at 10, 
n.11 (filed Mar. 27, 2015) (``NAB Waiver Petition''). See also id. 
at 13 (stating that ``it is common for broadcasters to run a crawl 
of school closings, during both newscasts and non-newscast 
programming'' and to also ``run a second crawl on the screen during 
non-newscast programming with [ ] critical, potentially life-saving 
information, . . . [b]ut, with currently-available technology, the 
station would have no way of prioritizing the vital information . . 
. over the ongoing audible crawl of the school closings'').
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    5. Currently, our rule requires that the critical details about an 
emergency and how to respond to it must be conveyed aurally on the 
secondary stream to the same extent that this information is conveyed 
visually. If more than one crawl or a crawl and a graphic are shown on-
screen at the same time, how can covered entities ensure that all of 
the critical details about the emergency and how to respond are 
conveyed aurally? Should we adopt rules that provide guidance to 
covered entities on how to prioritize emergency information conveyed 
aurally on the secondary audio stream when graphics or multiple crawls 
are used? For example, should we indicate that certain categories of 
emergency information should be prioritized based on the severity and 
proximity of the emergency and the potential impact on life, health, 
safety, and property? If multiple critical details about an emergency 
are broadcast simultaneously, should we prioritize them with respect to 
the requirement to provide audio information about their content (e.g., 
if a graphic or one crawl is providing information about areas affected 
by an emergency while another crawl is providing information about 
evacuation orders or shelter-in-place instructions), and if so, how? Or 
are these fact-specific judgements better left for broadcasters to make 
on a case-by-case basis?
    6. Given the time-sensitive nature of emergency information, as 
well as quick-changing developments that may occur during the course of 
an emergency situation, should we require that only the highest 
priority emergency information needs to be conveyed when there are 
multiple sources of emergency information being shown on-screen at the 
same time? Or should any prioritization rules assume that all emergency 
information shown simultaneously must be conveyed aurally and, 
therefore, require that the highest priority emergency information 
should be conveyed before any lesser priority emergency information on 
the secondary audio stream? Should we rely on the good faith judgment 
of the broadcaster to determine what information qualifies as the 
highest priority? We seek comment on any other potential solutions or 
issues related to the prioritization of emergency information on the 
secondary audio stream, including how determinations of what is a 
higher or lower priority should be made.

B. Inclusion of School Closing Information on the Secondary Audio 
Stream

    7. We also seek comment on whether the Commission should reconsider 
its requirement for ``school closings and changes in school bus 
schedules'' resulting from emergency situations to be conveyed aurally 
on the secondary audio stream, considering the length of such 
information and the limits of the secondary audio stream.
    8. ``Emergency information'' is currently defined in the 
Commission's rules as ``[i]nformation, about a current emergency, that 
is intended to further the protection of life, health, safety, and 
property, i.e., critical details regarding the emergency and how to 
respond to the emergency,'' and examples of the types of emergencies 
covered include ``tornadoes, hurricanes, floods, tidal waves, 
earthquakes, icing conditions, heavy snows, widespread fires, discharge 
of toxic gases, widespread power failures, industrial explosions, civil 
disorders, school closings and changes in school bus schedules 
resulting from such conditions, and warnings and watches of impending 
changes in weather.'' \5\ In the First Report and Order, the Commission 
declined to revise this definition of emergency information.\6\ In 
particular, the Commission declined to adopt NAB's recommendation to 
delete ``school closings and changes in school bus schedules resulting 
from such conditions, and warnings and watches of impending changes in 
weather'' from the examples of emergency information, finding that it 
would be inappropriate ``to narrow the definition in the interest of 
lessening the impact on other services provided on the secondary audio 
stream, given the higher priority of emergency information.'' \7\ Thus,

[[Page 39724]]

covered entities are required by the rule to ensure that visual 
emergency information regarding school closings and school bus schedule 
changes resulting from emergency situations aired during non-newscast 
programming is conveyed aurally on a secondary audio stream.\8\
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    \5\ 47 CFR 79.2(a)(2).
    \6\ First Report and Order, para. 29.
    \7\ See id. Although the Commission did not modify the 
definition of emergency information to delete school closings and 
school bus schedule changes that result from a current emergency 
from the list of examples, it found that covered entities have the 
option to air a brief audio message on the secondary audio stream at 
the start of the crawl indicating that this information will be 
aired at the conclusion of video-described programming, and to 
subsequently provide this information aurally on the secondary audio 
stream at the conclusion of the video-described programming. Id. at 
para. 31.
    \8\ See id. The Commission left it to the good faith judgment of 
the broadcaster or other covered entity to decide whether school 
closings and school bus schedule changes result from a situation 
that is a current emergency based on its severity and potential to 
threaten life, health, safety, and property and indicated that it 
would not sanction broadcasters or other covered entities for a 
reasonable exercise of their judgment in this regard. Id. at para. 
31 & n.136. But see NAB Waiver Petition at 11, n.14 (``Rather than 
risking an investigation and potential fine, however, NAB 
respectfully submits that most broadcasters would err on the side of 
caution in determining whether a given school closing falls under 
the Audible Crawl Rule.'').
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    9. In its waiver petition, NAB requests a limited waiver of the 
requirement to include school closings in the audible crawl pending 
identification of an alternative solution by all interested 
stakeholders.\9\ NAB suggests that this issue should be referred to the 
Commission's Disability Advisory Committee's (``DAC'') Video 
Programming subcommittee to develop an alternative solution.\10\ 
According to NAB, ``an audible crawl of school closings will be 
prolonged and inefficient'' and could last hours, particularly given 
the vast number of schools typically within a station's viewing area, 
as well as the Commission's requirement that the crawl be repeated.\11\ 
Further, NAB argues that currently there is no way for broadcasters to 
prioritize ``immediately impactful emergency information--such as a 
hurricane warning--over a prolonged reading of school closings,'' and 
the school closing information could ``interfere with the dissemination 
of more critical emergency information.'' \12\ NAB also contends that 
viewers expect emergency information on the secondary audio stream to 
be ``succinct and targeted'' since they have to switch from the main 
program audio to hear it, and that information on school closings is 
available from other sources, including email, text messages, radio, 
and Internet Web sites.\13\
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    \9\ See NAB Waiver Petition at 11-14.
    \10\ Id. at 11 & n.15.
    \11\ Id. at 12. Section 79.2(b)(2)(ii) of the Commission's rules 
requires that emergency information provided aurally on the 
secondary audio stream be conveyed in full at least twice to ensure 
that consumers are able to hear all of the information after they 
switch from the main program audio to the secondary audio stream. 
See 47 CFR 79.2(b)(2)(ii); First Report and Order, para. 25.
    \12\ NAB Waiver Petition at 12-13.
    \13\ Id. at 13.
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    10. We seek comment on NAB's assertions. Given NAB's arguments, 
should the Commission revise its rule to provide that ``school closings 
and changes in school bus schedules'' resulting from emergency 
situations are not required to be conveyed aurally on the secondary 
audio stream? Or should we revise the rule to indicate that such 
information must be provided on the secondary audio stream only if no 
other emergency information is being conveyed audibly on the secondary 
audio stream at the same time? Should we revise the rule to provide 
that such information need only be conveyed once in full, rather than 
twice as currently required, given the potential lengthiness of the 
crawl? In addition, we seek comment on the benefits of providing 
information about school closings and changes in school bus schedules 
on the secondary audio stream for individuals who are blind or visually 
impaired, and whether the availability of other sources of this 
information is adequate. Although we seek comment on this issue, we 
encourage broadcasters and the disability community to work toward a 
mutually agreeable resolution in the interim through the DAC.\14\
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    \14\ We note that since adoption of the Second Report and Order 
the Media Bureau granted NAB's request that the Commission 
temporarily waive the requirement to aurally convey school closing 
information on the secondary audio stream in the context of the NAB 
Waiver Petition. See Accessible Emergency Information, and Apparatus 
Requirements for Emergency Information and Video Description: 
Implementation of the Twenty-First Century Communications and Video 
Accessibility Act of 2010, Video Description: Implementation of the 
Twenty-First Century Communications and Video Accessibility Act of 
2010, Petitions for Waiver, MB Docket Nos. 12-107, 11-43; Memorandum 
Opinion and Order, DA 15-632, para. 18 (MB rel. May 26, 2015).
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C. Activation Mechanism for Emergency Information on the Secondary 
Audio Stream--MVPD Obligations

    11. We seek comment on whether we should require MVPDs to provide 
their customers with navigation devices that contain a simple and easy 
to use activation mechanism for accessing emergency information on the 
secondary audio stream. In the Second Report and Order, we conclude 
that manufacturers of apparatus covered by section 79.105 of the 
Commission's rules must provide a mechanism that is simple and easy to 
use, such as one that is reasonably comparable to a button, key, or 
icon, for activating the secondary audio stream for audible emergency 
information pursuant to section 203 of the CVAA. Manufacturers must 
provide this functionality on covered apparatus by December 20, 2016. 
Although covered apparatus, including navigation devices, will be 
required to have a simple and easy to use mechanism for activating the 
secondary audio stream by December 20, 2016, we want to ensure that 
compliant devices make it into the hands of MVPD customers promptly. 
Under section 202 of the CVAA, the Commission has authority to 
promulgate regulations that require video programming distributors, 
including MVPDs,\15\ ``to convey [ ] emergency information in a manner 
accessible to individuals who are blind or visually impaired.'' \16\ We 
believe this provision gives us authority to require MVPDs to provide 
devices with a simple and easy to use activation mechanism because 
conveying audible emergency information on the secondary stream would 
not be ``accessible to individuals who are blind or visually impaired'' 
if those individuals cannot readily access it. We seek comment on that 
view, as well as whether any other statutory provisions grant the 
Commission authority to adopt such a requirement. Should MVPDs be 
required to provide navigation devices with a simple and easy to use 
activation mechanism for the secondary audio stream only upon request 
by a customer or should MVPDs be required to provide devices with this 
functionality to all customers? What time frame would be appropriate 
for requiring MVPDs to provide navigation devices with a simple and 
easy to use activation mechanism for the secondary audio stream? We 
seek comment on these or any other issues related to implementation of 
such a requirement.
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    \15\ See 47 CFR 79.1(a)(11).
    \16\ 47 U.S.C. 613(g)(2).
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    12. In addition, we seek comment on whether we should require MVPDs 
to provide a simple and easy to use mechanism to activate the secondary 
audio stream for emergency information when they permit subscribers to 
view linear programming on mobile and other devices as part of their 
MVPD services. In the Second Report and Order, we adopt rules requiring 
MVPDs to pass through a secondary audio stream containing audible 
emergency information when they permit consumers to access linear 
programming on tablets, smartphones, laptops, and similar devices over 
the MVPD's network as part of their MVPD services. In particular, we 
conclude that MVPDs must ensure that any application or plug-in that 
they provide to consumers to access such programming is capable

[[Page 39725]]

of passing through audible emergency information on a secondary audio 
stream. Given that the record developed in this proceeding demonstrates 
that MVPDs control the ability of consumers to select and receive the 
secondary audio stream for linear programming provided through an MVPD 
application on mobile and other devices, should we require MVPDs to 
provide a simple and easy to use mechanism to activate the secondary 
audio stream for emergency information on MVPD applications and plug-
ins that allow consumers to view linear programming on mobile and other 
devices? As noted above, section 202 of the CVAA directs the Commission 
to promulgate regulations that require video programming distributors, 
including MVPDs,\17\ ``to convey [ ] emergency information in a manner 
accessible to individuals who are blind or visually impaired.'' \18\ We 
believe this provision gives us authority to require MVPDs to provide a 
simple and easy to use activation mechanism on MVPD applications and 
plug-ins that allow consumers to view linear programming on mobile and 
other devices because conveying audible emergency information on the 
secondary stream would not be ``accessible to individuals who are blind 
or visually impaired'' if those individuals cannot readily access it. 
We seek comment on that view, as well as whether any other statutory 
provisions grant the Commission authority to adopt such a requirement. 
What time frame would be appropriate for requiring MVPDs to comply? In 
the Second Report and Order, we adopt a compliance deadline of two 
years after publication in the Federal Register for MVPDs to pass 
through a secondary audio stream with audible emergency information for 
linear programming on tablets, smartphones, laptops, and similar 
devices. Should that deadline apply to the requirement for MVPDs to 
provide a simple and easy to use activation mechanism for the secondary 
audio stream? We seek comment on these or any other issues related to 
implementation of such a requirement.
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    \17\ See 47 CFR 79.1(a)(11).
    \18\ 47 U.S.C. 613(g)(2).
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III. Procedural Matters

A. Initial Regulatory Flexibility Act

    13. As required by the Regulatory Flexibility Act of 1980, as 
amended (``RFA''),\19\ the Commission has prepared this present Initial 
Regulatory Flexibility Analysis (``IRFA'') concerning the possible 
economic impact on small entities by the policies and rules proposed in 
the Second Further Notice. Written public comments are requested on 
this IRFA. Comments must be identified as responses to the IRFA and 
must be filed by the deadlines for comments as specified in the Second 
Further Notice. The Commission will send a copy of the Second Further 
Notice, including this IRFA, to the Chief Counsel for Advocacy of the 
Small Business Administration (``SBA'').\20\ In addition, the Second 
Further Notice and this IRFA (or summaries thereof) will be published 
in the Federal Register.\21\
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    \19\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (``SBREFA''), Public Law 104-121, Title II, 110 Stat. 857 
(1996).
    \20\ See 5 U.S.C. 603(a).
    \21\ See id.
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1. Need for, and Objectives of, the Proposed Rule Changes
    14. In the Second Further Notice, the Commission seeks comment on 
three issues: (i) whether to adopt rules regarding how covered entities 
should prioritize emergency information conveyed aurally on the 
secondary audio stream when more than one source of visual emergency 
information is presented on-screen at the same time; (ii) whether to 
reconsider the Commission's requirement for ``school closings and 
changes in school bus schedules'' resulting from emergency situations 
to be conveyed aurally on the secondary audio stream, considering the 
length of such information and the limits of the secondary audio 
stream; and (iii) whether to require MVPDs to ensure that the 
navigation devices that they provide to subscribers include a simple 
and easy to use activation mechanism for accessing audible emergency 
information on the secondary audio stream, and to provide a simple and 
easy to use mechanism to activate the secondary audio stream for 
emergency information when they permit subscribers to view linear 
programming on mobile and other devices as part of their MVPD services.
2. Legal Basis
    15. The proposed action is authorized pursuant to the Twenty-First 
Century Communications and Video Accessibility Act of 2010, Public Law 
111-260, 124 Stat. 2751, and Sections 4(i), 4(j), 303, 330(b), 713, and 
716 of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 
154(j), 303, 330(b), 613, and 617.
3. Description and Estimate of the Number of Small Entities to Which 
the Proposed Rules Will Apply
    16. The RFA directs the Commission to provide a description of and, 
where feasible, an estimate of the number of small entities that will 
be affected by the rules adopted in the Second Report and Order. \22\ 
The RFA generally defines the term ``small entity'' as having the same 
meaning as the terms ``small business,'' ``small organization,'' and 
``small governmental jurisdiction.'' \23\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\24\ 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 SBA.\25\ Small entities that are directly affected 
by the rules adopted in the Second Report and Order include video 
programming providers and video programming distributors covered by 
section 79.2 of the Commission's rules.
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    \22\ 5 U.S.C. 603(b)(3).
    \23\ Id. 601(6).
    \24\ Id. 601(3) (incorporating by reference the definition of 
``small-business concern'' in the Small Business Act, 15 U.S.C. 
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a 
small business applies ``unless an agency, after consultation with 
the Office of Advocacy of the Small Business Administration and 
after opportunity for public comment, establishes one or more 
definitions of such term which are appropriate to the activities of 
the agency and publishes such definition(s) in the Federal 
Register.''
    \25\ 15 U.S.C. 632.
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    17. Cable Television Distribution Services. Since 2007, these 
services have been defined within the broad economic census category of 
Wired Telecommunications Carriers, which was developed for small 
wireline businesses. This category is defined as follows: ``This 
industry comprises establishments primarily engaged in operating and/or 
providing access to transmission facilities and infrastructure that 
they own and/or lease for the transmission of voice, data, text, sound, 
and video using wired telecommunications networks. Transmission 
facilities may be based on a single technology or a combination of 
technologies. Establishments in this industry use the wired 
telecommunications network facilities that they operate to provide a 
variety of services, such as wired telephony services, including VoIP 
services; wired (cable) audio and video programming distribution; and 
wired broadband

[[Page 39726]]

Internet services.'' \26\ In this category, the SBA deems a wired 
telecommunications carrier to be small if it has 1,500 or fewer 
employees.\27\ Census data for 2007 shows 3,188 firms in this 
category.\28\ Of these 3,188 firms, only 44 had 1,000 or more 
employees. While we could not find precise Census data on the number of 
firms with in the group with 1,500 or fewer employees, it is clear that 
at least 3,144 firms with fewer than 1,000 employees would be in that 
group. Therefore, under this size standard, we estimate that the 
majority of businesses can be considered small entities.
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    \26\ U.S. Census Bureau, 2012 NAICS Definitions, ``517110 Wired 
Telecommunications Carriers'' (partial definition) at http://www.census.gov/cgi-bin/sssd/naics/naicsrch. Examples of this 
category are: broadband Internet service providers (e.g., cable, 
DSL); local telephone carriers (wired); cable television 
distribution services; long-distance telephone carriers (wired); 
closed circuit television (``CCTV'') services; VoIP service 
providers, using own operated wired telecommunications 
infrastructure; direct-to-home satellite system (``DTH'') services; 
telecommunications carriers (wired); satellite television 
distribution systems; and multichannel multipoint distribution 
services (``MMDS'').
    \27\ 13 CFR 121.201; NAICS Code 517110.
    \28\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
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    18. 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.\29\ Industry data 
shows that there were 1,141 cable companies at the end of June 
2012.\30\ Of this total, all but 10 incumbent cable companies are small 
under this size standard.\31\ In addition, under the Commission's rate 
regulation rules, a ``small system'' is a cable system serving 15,000 
or fewer subscribers.\32\ Current Commission records show 4,945 cable 
systems nationwide.\33\ Of this total, 4,380 cable systems have less 
than 20,000 subscribers, and 565 systems have 20,000 subscribers or 
more, based on the same records. Thus, under this standard, we estimate 
that most cable systems are small.
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    \29\ 47 CFR 76.901(e). The Commission determined that this size 
standard equates approximately to a size standard of $100 million or 
less in annual revenues. Implementation of Sections of the Cable 
Television Consumer Protection And Competition Act of 1992: Rate 
Regulation, MM Docket No. 92-266, MM Docket No. 93-215, Sixth Report 
and Order and Eleventh Order on Reconsideration, FCC 95-196, 60 FR 
35854 (1995).
    \30\ NCTA, Industry Data, Number of Cable Operating Companies 
(June 2012), http://www.ncta.com/Statistics.aspx (visited Sept. 28, 
2012). Depending upon the number of homes and the size of the 
geographic area served, cable operators use one or more cable 
systems to provide video service. See Annual Assessment of the 
Status of Competition in the Market for Delivery of Video 
Programming, MB Docket No. 12-203, Fifteenth Report, FCC 13-99 at 
para. 24 (rel. July 22, 2013) (``15th Annual Competition Report'').
    \31\ See SNL Kagan, ``Top Cable MSOs--12/12 Q''; available at 
http://www.snl.com/InteractiveX/TopCableMSOs.aspx?period=2012Q4&sortcol=subscribersbasic&sortorder=desc. We note that, when applied to an MVPD operator, under this size 
standard (i.e., 400,000 or fewer subscribers) all but 14 MVPD 
operators would be considered small. See NCTA, Industry Data, Top 25 
Multichannel Video Service Customers (2012), http://www.ncta.com/industry-data (visited Aug. 30, 2013). The Commission applied this 
size standard to MVPD operators in its implementation of the CALM 
Act. See Implementation of the Commercial Advertisement Loudness 
Mitigation (CALM) Act, MB Docket No. 11-93, Report and Order, FCC 
11-182, 77 FR 40276, para. 37 (2011) (``CALM Act Report and Order'') 
(defining a smaller MVPD operator as one serving 400,000 or fewer 
subscribers nationwide, as of December 31, 2011).
    \32\ 47 CFR 76.901(c).
    \33\ The number of active, registered cable systems comes from 
the Commission's Cable Operations and Licensing System (COALS) 
database on Aug. 28, 2013. A cable system is a physical system 
integrated to a principal headend.
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    19. Cable System Operators (Telecom Act Standard). The 
Communications Act of 1934, as amended, also contains a size standard 
for small cable system operators, which is ``a cable operator that, 
directly or through an affiliate, serves in the aggregate fewer than 1 
percent of all subscribers in the United States and is not affiliated 
with any entity or entities whose gross annual revenues in the 
aggregate exceed $250,000,000.'' \34\ There are approximately 56.4 
million incumbent cable video subscribers in the United States 
today.\35\ Accordingly, an operator serving fewer than 564,000 
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.\36\ Based on available data, 
we find that all but 10 incumbent cable operators are small under this 
size standard.\37\ We note that the Commission neither requests nor 
collects information on whether cable system operators are affiliated 
with entities whose gross annual revenues exceed $250 million.\38\ 
Although it seems certain that some of these cable system operators are 
affiliated with entities whose gross annual revenues exceed 
$250,000,000, we are unable at this time to estimate with greater 
precision the number of cable system operators that would qualify as 
small cable operators under the definition in the Communications Act.
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    \34\ 47 U.S.C. 543(m)(2); see 47 CFR 76.901(f) & nn. 1-3.
    \35\ See NCTA, Industry Data, Cable Video Customers (2012), 
http://www.ncta.com/industry-data (visited Aug. 30, 2013).
    \36\ 47 CFR 76.901(f); see Public Notice, FCC Announces New 
Subscriber Count for the Definition of Small Cable Operator, DA 01-
158 (Cable Services Bureau, Jan. 24, 2001).
    \37\ See NCTA, Industry Data, Top 25 Multichannel Video Service 
Customers (2012), http://www.ncta.com/industry-data (visited Aug. 
30, 2013).
    \38\ The Commission does receive such information on a case-by-
case basis if a cable operator appeals a local franchise authority's 
finding that the operator does not qualify as a small cable operator 
pursuant to 47 CFR 76.901(f).
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    20. Direct Broadcast Satellite (DBS) Service. DBS service is a 
nationally distributed subscription service that delivers video and 
audio programming via satellite to a small parabolic ``dish'' antenna 
at the subscriber's location. DBS, by exception, is now included in the 
SBA's broad economic census category, Wired Telecommunications 
Carriers,\39\ which was developed for small wireline businesses. In 
this category, the SBA deems a wired telecommunications carrier to be 
small if it has 1,500 or fewer employees.\40\ Census data for 2007 
shows 3,188 firms in this category.\41\ Of these 3,188 firms, only 44 
had 1,000 or more employees. While we could not find precise Census 
data on the number of firms with in the group with 1,500 or fewer 
employees, it is clear that at least 3,144 firms with fewer than 1,000 
employees would be in that group. Therefore, under this size standard, 
the majority of such businesses can be considered small. However, the 
data we have available as a basis for estimating the number of such 
small entities were gathered under a superseded SBA small business size 
standard formerly titled ``Cable and Other Program Distribution.'' The 
definition of Cable and Other Program Distribution provided that a 
small entity is one with $12.5 million or less in annual receipts.\42\ 
Currently, only two entities provide DBS service, which

[[Page 39727]]

requires a great investment of capital for operation: DIRECTV and DISH 
Network.\43\ Each currently offer subscription services. DIRECTV and 
DISH Network each report annual revenues that are in excess of the 
threshold for a small business. Because DBS service requires 
significant capital, we believe it is unlikely that a small entity as 
defined by the SBA would have the financial wherewithal to become a DBS 
service provider.
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    \39\ See 13 CFR 121.201; 2012 NAICS code 517110. This category 
of Wired Telecommunications Carriers is defined as follows: ``This 
industry comprises establishments primarily engaged in operating 
and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single 
technology or a combination of technologies. Establishments in this 
industry use the wired telecommunications network facilities that 
they operate to provide a variety of services, such as wired 
telephony services, including VoIP services; wired (cable) audio and 
video programming distribution; and wired broadband Internet 
services. By exception, establishments providing satellite 
television distribution services using facilities and infrastructure 
that they operate are included in this industry.'' (Emphasis added 
to text relevant to satellite services.) U.S. Census Bureau, 2012 
NAICS Definitions, ``517110 Wired Telecommunications Carriers'' at 
http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \40\ 13 CFR 121.201; NAICS Code 517110.
    \41\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
    \42\ 13 CFR 121.201; NAICS code 517510 (2002).
    \43\ See 15th Annual Competition Report, at para. 27. As of June 
2012, DIRECTV is the largest DBS operator and the second largest 
MVPD in the United States, serving approximately 19.9 million 
subscribers. DISH Network is the second largest DBS operator and the 
third largest MVPD, serving approximately 14.1 million subscribers. 
Id. para. 27, 110-11.
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    21. Satellite Master Antenna Television (SMATV) Systems, also known 
as Private Cable Operators (PCOs). SMATV systems or PCOs are video 
distribution facilities that use closed transmission paths without 
using any public right-of-way. They acquire video programming and 
distribute it via terrestrial wiring in urban and suburban multiple 
dwelling units such as apartments and condominiums, and commercial 
multiple tenant units such as hotels and office buildings. SMATV 
systems or PCOs are now included in the SBA's broad economic census 
category, Wired Telecommunications Carriers,\44\ which was developed 
for small wireline businesses. In this category, the SBA deems a wired 
telecommunications carrier to be small if it has 1,500 or fewer 
employees.\45\ Census data for 2007 shows 3,188 firms in this 
category.\46\ Of these 3,188 firms, only 44 had 1,000 or more 
employees. While we could not find precise Census data on the number of 
firms with in the group with 1,500 or fewer employees, it is clear that 
at least 3,144 firms with fewer than 1,000 employees would be in that 
group. Therefore, under this size standard, the majority of such 
businesses can be considered small.
---------------------------------------------------------------------------

    \44\ See 13 CFR 121.201; 2012 NAICS code 517110. This category 
of Wired Telecommunications Carriers is defined as follows: ``This 
industry comprises establishments primarily engaged in operating 
and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single 
technology or a combination of technologies. Establishments in this 
industry use the wired telecommunications network facilities that 
they operate to provide a variety of services, such as wired 
telephony services, including VoIP services; wired (cable) audio and 
video programming distribution; and wired broadband Internet 
services. By exception, establishments providing satellite 
television distribution services using facilities and infrastructure 
that they operate are included in this industry.'' (Emphasis added 
to text relevant to satellite services.) U.S. Census Bureau, 2012 
NAICS Definitions, ``517110 Wired Telecommunications Carriers'' at 
http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \45\ 13 CFR 121.201; NAICS Code 517110.
    \46\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
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    22. Home Satellite Dish (HSD) Service. HSD or the large dish 
segment of the satellite industry is the original satellite-to-home 
service offered to consumers, and involves the home reception of 
signals transmitted by satellites operating generally in the C-band 
frequency. Unlike DBS, which uses small dishes, HSD antennas are 
between four and eight feet in diameter and can receive a wide range of 
unscrambled (free) programming and scrambled programming purchased from 
program packagers that are licensed to facilitate subscribers' receipt 
of video programming. Because HSD provides subscription services, HSD 
falls within the SBA-recognized definition of Wired Telecommunications 
Carriers.\47\ In this category, the SBA deems a wired 
telecommunications carrier to be small if it has 1,500 or fewer 
employees.\48\ Census data for 2007 shows 3,188 firms in this 
category.\49\ Of these 3,188 firms, only 44 had 1,000 or more 
employees. While we could not find precise Census data on the number of 
firms with in the group with 1,500 or fewer employees, it is clear that 
at least 3,144 firms with fewer than 1,000 employees would be in that 
group. Therefore, under this size standard, we estimate that the 
majority of businesses can be considered small entities.
---------------------------------------------------------------------------

    \47\ See 13 CFR 121.201; 2012 NAICS code 517110. This category 
of Wired Telecommunications Carriers is defined in part as follows: 
``This industry comprises establishments primarily engaged in 
operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single 
technology or a combination of technologies. Establishments in this 
industry use the wired telecommunications network facilities that 
they operate to provide a variety of services, such as wired 
telephony services, including VoIP services; wired (cable) audio and 
video programming distribution; and wired broadband Internet 
services.'' U.S. Census Bureau, 2012 NAICS Definitions, ``517110 
Wired Telecommunications Carriers'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \48\ 13 CFR 121.201; NAICS Code 517110.
    \49\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
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    23. Open Video Services. The open video system (OVS) framework was 
established in 1996, and is one of four statutorily recognized options 
for the provision of video programming services by local exchange 
carriers.\50\ The OVS framework provides opportunities for the 
distribution of video programming other than through cable systems. 
Because OVS operators provide subscription services,\51\ OVS falls 
within the SBA small business size standard covering cable services, 
which is Wired Telecommunications Carriers.\52\ In this category, the 
SBA deems a wired telecommunications carrier to be small if it has 
1,500 or fewer employees.\53\ Census data for 2007 shows 3,188 firms in 
this category.\54\ Of these 3,188 firms, only 44 had 1,000 or more 
employees. While we could not find precise Census data on the number of 
firms with in the group with 1,500 or fewer employees, it is clear that 
at least 3,144 firms with fewer than 1,000 employees would be in that 
group. Therefore, under this size standard, we estimate that the 
majority of businesses can be considered small entities. In addition, 
we note that the Commission has certified some OVS operators, with some 
now providing service.\55\ Broadband service providers (``BSPs'') are 
currently the only significant holders of OVS certifications or local 
OVS franchises.\56\ The Commission does not have financial or 
employment information regarding the entities authorized to provide 
OVS, some of which may not yet be operational. Thus, again, at least 
some of the OVS operators may qualify as small entities.
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    \50\ 47 U.S.C. 571(a)(3) through (4). See Annual Assessment of 
the Status of Competition in the Market for the Delivery of Video 
Programming, MB Docket No. 06-189, Thirteenth Annual Report, FCC 07-
206, 74 FR 11102, para. 135 (2009) (``Thirteenth Annual Cable 
Competition Report'').
    \51\ See 47 U.S.C. 573.
    \52\ See 13 CFR 121.201; 2012 NAICS code 517110. This category 
of Wired Telecommunications Carriers is defined in part as follows: 
``This industry comprises establishments primarily engaged in 
operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single 
technology or a combination of technologies. Establishments in this 
industry use the wired telecommunications network facilities that 
they operate to provide a variety of services, such as wired 
telephony services, including VoIP services; wired (cable) audio and 
video programming distribution; and wired broadband Internet 
services.'' U.S. Census Bureau, 2012 NAICS Definitions, ``517110 
Wired Telecommunications Carriers'' at http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \53\ 13 CFR 121.201; NAICS Code 517110.
    \54\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
    \55\ A list of OVS certifications may be found at http://www.fcc.gov/mb/ovs/csovscer.html.
    \56\ See Thirteenth Annual Cable Competition Report, para. 135. 
BSPs are newer businesses that are building state-of-the-art, 
facilities-based networks to provide video, voice, and data services 
over a single network.
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    24. Wireless cable systems--Broadband Radio Service and

[[Page 39728]]

Educational Broadband Service. Wireless cable systems use the Broadband 
Radio Service (BRS) \57\ and Educational Broadband Service (EBS) \58\ 
to transmit video programming to subscribers. In connection with the 
1996 BRS auction, the Commission established a small business size 
standard as an entity that had annual average gross revenues of no more 
than $40 million in the previous three calendar years.\59\ The BRS 
auctions resulted in 67 successful bidders obtaining licensing 
opportunities for 493 Basic Trading Areas (BTAs). Of the 67 auction 
winners, 61 met the definition of a small business. BRS also includes 
licensees of stations authorized prior to the auction. At this time, we 
estimate that of the 61 small business BRS auction winners, 48 remain 
small business licensees. In addition to the 48 small businesses that 
hold BTA authorizations, there are approximately 392 incumbent BRS 
licensees that are considered small entities.\60\ After adding the 
number of small business auction licensees to the number of incumbent 
licensees not already counted, we find that there are currently 
approximately 440 BRS licensees that are defined as small businesses 
under either the SBA or the Commission's rules. In 2009, the Commission 
conducted Auction 86, the sale of 78 licenses in the BRS areas.\61\ The 
Commission offered three levels of bidding credits: (i) A bidder with 
attributed average annual gross revenues that exceed $15 million and do 
not exceed $40 million for the preceding three years (small business) 
received a 15 percent discount on its winning bid; (ii) a bidder with 
attributed average annual gross revenues that exceed $3 million and do 
not exceed $15 million for the preceding three years (very small 
business) received a 25 percent discount on its winning bid; and (iii) 
a bidder with attributed average annual gross revenues that do not 
exceed $3 million for the preceding three years (entrepreneur) received 
a 35 percent discount on its winning bid.\62\ Auction 86 concluded in 
2009 with the sale of 61 licenses.\63\ Of the 10 winning bidders, two 
bidders that claimed small business status won four licenses; one 
bidder that claimed very small business status won three licenses; and 
two bidders that claimed entrepreneur status won six licenses.
---------------------------------------------------------------------------

    \57\ BRS was previously referred to as Multipoint Distribution 
Service (MDS) and Multichannel Multipoint Distribution Service 
(MMDS). See Amendment of Parts 21 and 74 of the Commission's Rules 
with Regard to Filing Procedures in the Multipoint Distribution 
Service and in the Instructional Television Fixed Service and 
Implementation of Section 309(j) of the Communications Act--
Competitive Bidding, MM Docket No. 94-131, PP Docket No. 93-253, 
Report and Order, FCC 95-230, 60 FR 36524, para. 7 (1995).
    \58\ EBS was previously referred to as the Instructional 
Television Fixed Service (ITFS). See id.
    \59\ 47 CFR 21.961(b)(1).
    \60\ 47 U.S.C. 309(j). Hundreds of stations were licensed to 
incumbent MDS licensees prior to implementation of Section 309(j) of 
the Communications Act of 1934, 47 U.S.C. 309(j). For these pre-
auction licenses, the applicable standard is SBA's small business 
size standard of 1,500 or fewer employees.
    \61\ Auction of Broadband Radio Service (BRS) Licenses, 
Scheduled for October 27, 2009, Notice and Filing Requirements, 
Minimum Opening Bids, Upfront Payments, and Other Procedures for 
Auction 86, Public Notice, DA 09-1376 (WTB rel. Jun. 26, 2009).
    \62\ Id.
    \63\ Auction of Broadband Radio Service Licenses Closes, Winning 
Bidders Announced for Auction 86, Down Payments Due November 23, 
2009, Final Payments Due December 8, 2009, Ten-Day Petition to Deny 
Period, Public Notice, DA 09-2378 (WTB rel. Nov. 6, 2009).
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    25. In addition, the SBA's placement of Cable Television 
Distribution Services in the category of Wired Telecommunications 
Carriers is applicable to cable-based Educational Broadcasting 
Services. Since 2007, these services have been defined within the broad 
economic census category of Wired Telecommunications Carriers, which 
was developed for small wireline businesses. This category is defined 
as follows: ``This industry comprises establishments primarily engaged 
in operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single technology 
or a combination of technologies. Establishments in this industry use 
the wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including VoIP services; wired (cable) audio and video programming 
distribution; and wired broadband Internet services.'' \64\ In this 
category, the SBA deems a wired telecommunications carrier to be small 
if it has 1,500 or fewer employees.\65\ Census data for 2007 shows 
3,188 firms in this category.\66\ Of these 3,188 firms, only 44 had 
1,000 or more employees. While we could not find precise Census data on 
the number of firms with in the group with 1,500 or fewer employees, it 
is clear that at least 3,144 firms with fewer than 1,000 employees 
would be in that group. Therefore, under this size standard, we 
estimate that the majority of businesses can be considered small 
entities. In addition to Census data, the Commission's internal records 
indicate that as of September 2012, there are 2,241 active EBS 
licenses.\67\ The Commission estimates that of these 2,241 licenses, 
the majority are held by non-profit educational institutions and school 
districts, which are by statute defined as small businesses.\68\
---------------------------------------------------------------------------

    \64\ U.S. Census Bureau, 2012 NAICS Definitions, ``517110 Wired 
Telecommunications Carriers'' (partial definition) at http://www.census.gov/cgi-bin/sssd/naics/naicsrch. Examples of this 
category are: Broadband Internet service providers (e.g., cable, 
DSL); local telephone carriers (wired); cable television 
distribution services; long-distance telephone carriers (wired); 
closed circuit television (``CCTV'') services; VoIP service 
providers, using own operated wired telecommunications 
infrastructure; direct-to-home satellite system (``DTH'') services; 
telecommunications carriers (wired); satellite television 
distribution systems; and multichannel multipoint distribution 
services (``MMDS'').
    \65\ 13 CFR 121.201; NAICS Code 517110.
    \66\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
    \67\ http://wireless2.fcc.gov/UlsApp/UlsSearch/results.jsp.
    \68\ The term ``small entity'' within SBREFA applies to small 
organizations (non-profits) and to small governmental jurisdictions 
(cities, counties, towns, townships, villages, school districts, and 
special districts with populations of less than 50,000). 5 U.S.C. 
601(4) through (6).
---------------------------------------------------------------------------

    26. Incumbent Local Exchange Carriers (ILECs). Neither the 
Commission nor the SBA has developed a small business size standard 
specifically for incumbent local exchange services. ILECs are included 
in the SBA's economic census category, Wired Telecommunications 
Carriers.\69\ In this category, the SBA deems a wired 
telecommunications carrier to be small if it has 1,500 or fewer 
employees.\70\ Census data for 2007 shows 3,188 firms in this 
category.\71\ Of these 3,188 firms, only 44 had 1,000 or more 
employees.

[[Page 39729]]

While we could not find precise Census data on the number of firms with 
in the group with 1,500 or fewer employees, it is clear that at least 
3,144 firms with fewer than 1,000 employees would be in that group. 
Therefore, under this size standard, the majority of such businesses 
can be considered small.
---------------------------------------------------------------------------

    \69\ See 13 CFR 121.201; 2012 NAICS code 517110. This category 
of Wired Telecommunications Carriers is defined as follows: ``This 
industry comprises establishments primarily engaged in operating 
and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single 
technology or a combination of technologies. Establishments in this 
industry use the wired telecommunications network facilities that 
they operate to provide a variety of services, such as wired 
telephony services, including VoIP services; wired (cable) audio and 
video programming distribution; and wired broadband Internet 
services. By exception, establishments providing satellite 
television distribution services using facilities and infrastructure 
that they operate are included in this industry.'' (Emphasis added 
to text relevant to satellite services.) U.S. Census Bureau, 2012 
NAICS Definitions, ``517110 Wired Telecommunications Carriers'' at 
http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \70\ 13 CFR 121.201; NAICS Code 517110.
    \71\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
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    27. Small Incumbent Local Exchange Carriers. We have included small 
incumbent local exchange carriers in this present RFA analysis. 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.'' \72\ The SBA's Office of Advocacy 
contends that, for RFA purposes, small incumbent local exchange 
carriers are not dominant in their field of operation because any such 
dominance is not ``national'' in scope.\73\ We have therefore included 
small incumbent local exchange carriers in this RFA analysis, although 
we emphasize that this RFA action has no effect on Commission analyses 
and determinations in other, non-RFA contexts.
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    \72\ 15 U.S.C. 632.
    \73\ Letter from Jere W. Glover, Chief Counsel for Advocacy, 
SBA, to William E. Kennard, Chairman, FCC (May 27, 1999). The Small 
Business Act contains a definition of ``small-business concern,'' 
which the RFA incorporates into its own definition of ``small 
business.'' See 15 U.S.C. 632(a) (Small Business Act); 5 U.S.C. 
601(3) (RFA). SBA regulations interpret ``small business concern'' 
to include the concept of dominance on a national basis. See 13 CFR 
121.102(b).
---------------------------------------------------------------------------

    28. 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. 
These entities are included in the SBA's economic census category, 
Wired Telecommunications Carriers.\74\ In this category, the SBA deems 
a wired telecommunications carrier to be small if it has 1,500 or fewer 
employees.\75\ Census data for 2007 shows 3,188 firms in this 
category.\76\ Of these 3,188 firms, only 44 had 1,000 or more 
employees. While we could not find precise Census data on the number of 
firms with in the group with 1,500 or fewer employees, it is clear that 
at least 3,144 firms with fewer than 1,000 employees would be in that 
group. Therefore, under this size standard, the majority of such 
businesses can be considered small.
---------------------------------------------------------------------------

    \74\ See 13 CFR 121.201; 2012 NAICS code 517110. This category 
of Wired Telecommunications Carriers is defined as follows: ``This 
industry comprises establishments primarily engaged in operating 
and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single 
technology or a combination of technologies. Establishments in this 
industry use the wired telecommunications network facilities that 
they operate to provide a variety of services, such as wired 
telephony services, including VoIP services; wired (cable) audio and 
video programming distribution; and wired broadband Internet 
services. By exception, establishments providing satellite 
television distribution services using facilities and infrastructure 
that they operate are included in this industry.'' (Emphasis added 
to text relevant to satellite services.) U.S. Census Bureau, 2012 
NAICS Definitions, ``517110 Wired Telecommunications Carriers'' at 
http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
    \75\ 13 CFR 121.201; NAICS Code 517110.
    \76\ http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-_skip=600&-ds_name=EC0751SSSZ5&-_lang=en.
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4. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements
    29. In this section, we describe the reporting, recordkeeping, and 
other compliance requirements proposed in the Second Further Notice and 
consider whether small entities are affected disproportionately by any 
such requirements.
    30. In the Second Further Notice, the Commission seeks comment on 
three issues: (i) Whether to adopt rules regarding how covered entities 
should prioritize emergency information conveyed aurally on the 
secondary audio stream when more than one source of visual emergency 
information is presented on-screen at the same time; (ii) whether to 
reconsider the Commission's requirement for ``school closings and 
changes in school bus schedules'' resulting from emergency situations 
to be conveyed aurally on the secondary audio stream, considering the 
length of such information and the limits of the secondary audio 
stream; and (iii) whether to require MVPDs to ensure that the 
navigation devices that they provide to subscribers include a simple 
and easy to use activation mechanism for accessing audible emergency 
information on the secondary audio stream, and to provide a simple and 
easy to use mechanism to activate the secondary audio stream for 
emergency information when they permit subscribers to view linear 
programming on mobile and other devices as part of their MVPD services.
    31. With respect to the first issue, the Second Further Notice asks 
whether the Commission should adopt rules to provide clarity to covered 
entities on how to prioritize emergency information on the secondary 
audio stream when complying with the requirements in Section 79.2. 
There are no new reporting or recordkeeping requirements proposed. 
There will, however, be compliance requirements for video programming 
providers and video programming distributors, including small entities. 
Specifically, covered entities will need to comply with any rules that 
govern how to prioritize emergency information conveyed aurally on the 
secondary audio stream when more than one source of visual emergency 
information is presented on-screen at the same time.
    32. With respect to the second issue, the Second Further Notice 
seeks comment on whether the Commission should reconsider the 
requirement for ``school closings and changes in school bus schedules'' 
resulting from emergency situations to be conveyed aurally on the 
secondary audio stream, considering the length of such information and 
the limits of the secondary audio stream. There are no new reporting, 
recordkeeping, or compliance requirements proposed.
    33. With respect to the third issue, the Second Further Notice asks 
whether the Commission should require MVPDs to ensure that the 
navigation devices that they provide to subscribers include a simple 
and easy to use activation mechanism for accessing audible emergency 
information on the secondary audio stream, and to provide a simple and 
easy to use mechanism to activate the secondary audio stream for 
emergency information when they permit subscribers to view linear 
programming on mobile and other devices as part of their MVPD services. 
This would impose compliance requirements on MVPDs, including small 
MVPDs. In addition, there may be reporting or recordkeeping 
obligations. For example, the Commission may decide to impose a 
notification requirement so that consumers are aware of the 
availability of accessible navigation devices that include a simple and 
easy to use activation mechanism for the secondary audio stream.
5. Steps Taken To Minimize Significant Impact on Small Entities and 
Significant Alternatives Considered
    34. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives (among others): (1) 
The establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance and reporting requirements under the rule for small 
entities; (3) the

[[Page 39730]]

use of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.\77\
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    \77\ 5 U.S.C. 603(c)(1) through (c)(4).
---------------------------------------------------------------------------

    35. Two of the rule changes contemplated by the Second Further 
Notice would not impose a significant impact on small entities. The 
Commission is considering a rule that would provide guidance to covered 
entities on how to prioritize emergency information on the secondary 
audio stream when there are multiple sources of visual emergency 
information shown on-screen during non-newscast programming, and the 
costs and burdens associated with such a rule are expected to be de 
minimis or non-existent. Further, the Commission is considering whether 
to reconsider the requirement for ``school closings and changes in 
school bus schedules'' resulting from emergency situations to be 
conveyed aurally on the secondary audio stream. Such a rule change 
would minimize the costs and burdens on regulated entities of all 
sizes.
    36. The Commission is also seeking comment on whether to require 
MVPDs to ensure that the navigation devices that they provide to 
subscribers include a simple and easy to use activation mechanism for 
accessing audible emergency information on the secondary audio stream, 
and to provide a simple and easy to use mechanism to activate the 
secondary audio stream for emergency information when they permit 
subscribers to view linear programming on mobile and other devices as 
part of their MVPD services. This proposed rule may have an economic 
impact in some cases, and that impact may affect small entities. 
Although the Commission has considered alternatives where possible, as 
directed by the RFA, to minimize economic impact on small entities, we 
emphasize that our action is governed by the congressional mandate 
contained in section 202 of the CVAA.
    37. Based on these considerations, we believe that, in proposing 
additional rules in the Second Further Notice, we have appropriately 
considered both the interests of blind or visually impaired individuals 
and the interests of the entities who will be subject to the rules, 
including those that are smaller entities, consistent with Congress' 
goal to ``update the communications laws to help ensure that 
individuals with disabilities are able to fully utilize communications 
services and equipment and better access video programming.'' \78\
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    \78\ H.R. Rep. No. 111-563, 111th Cong., 2d Sess. at 19 (2010); 
S. Rep. No. 111-386, 111th Cong., 2d Sess. at 1 (2010).
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6. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rule
    38. None.

B. Paperwork Reduction Act

    39. This document does not contain proposed information collection 
requirements subject to the Paperwork Reduction Act of 1995 (PRA).\79\ 
In addition, therefore, it does not contain any proposed information 
collection burden for small business concerns with fewer than 25 
employees, pursuant to the Small Business Paperwork Relief Act of 
2002.\80\
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    \79\ The Paperwork Reduction Act of 1995 (PRA), Public Law 104-
13, 109 Stat 163 (1995) (codified in Chapter 35 of title 44 U.S.C.).
    \80\ The Small Business Paperwork Relief Act of 2002 (SBPRA), 
Public Law 107-198, 116 Stat 729 (2002) (codified in Chapter 35 of 
title 44 U.S.C.); see 44 U.S.C. 3506(c)(4).
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C. Ex Parte Rules

    40. We remind interested parties that this proceeding is treated as 
a ``permit-but-disclose'' proceeding in accordance with the 
Commission's ex parte rules.\81\ Persons making ex parte presentations 
must file a copy of any written presentation or a memorandum 
summarizing any oral presentation within two business days after the 
presentation (unless a different deadline applicable to the Sunshine 
period applies). Persons making oral ex parte presentations are 
reminded that memoranda summarizing the presentation must (1) list all 
persons attending or otherwise participating in the meeting at which 
the ex parte presentation was made, and (2) summarize all data 
presented and arguments made during the presentation. If the 
presentation consisted in whole or in part of the presentation of data 
or arguments already reflected in the presenter's written comments, 
memoranda, or other filings in the proceeding, the presenter may 
provide citations to such data or arguments in his or her prior 
comments, memoranda, or other filings (specifying the relevant page 
and/or paragraph numbers where such data or arguments can be found) in 
lieu of summarizing them in the memorandum. Documents shown or given to 
Commission staff during ex parte meetings are deemed to be written ex 
parte presentations and must be filed consistent with rule 1.1206(b). 
In proceedings governed by rule 1.49(f) or for which the Commission has 
made available a method of electronic filing, written ex parte 
presentations and memoranda summarizing oral ex parte presentations, 
and all attachments thereto, must be filed through the electronic 
comment filing system available for that proceeding, and must be filed 
in their native format (e.g., .doc, .xml, .ppt, searchable .pdf). 
Participants in this proceeding should familiarize themselves with the 
Commission's ex parte rules.
---------------------------------------------------------------------------

    \81\ 47 CFR 1.1200 et seq.
---------------------------------------------------------------------------

D. Filing Requirements

    41. Pursuant to sections 1.415 and 1.419 of the Commission's 
rules,\82\ interested parties may file comments and reply comments on 
or before the dates indicated on the first page of this document. All 
comments are to reference MB Docket No. 12-107 and may be filed using: 
(1) The Commission's Electronic Comment Filing System (ECFS) or (2) by 
filing paper copies.\83\
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    \82\ See 47 CFR 1.415, 1419.
    \83\ See Electronic Filing of Documents in Rulemaking 
Proceedings, GC Docket No. 97-113, Report and Order, FCC 98-56, 63 
FR 24121 (1998).
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    [ssquf] Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/.
    [ssquf] Paper Filers: Parties who choose to file by paper must file 
an original and one copy 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. All filings must be addressed to the Commission's Secretary, 
Office of the Secretary, Federal Communications Commission.
    [ssquf] All hand-delivered or messenger-delivered paper filings for 
the Commission's Secretary must be delivered to FCC Headquarters at 445 
12th St. SW., Room TW-A325, Washington, DC 20554. The filing hours are 
8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with 
rubber bands or fasteners. Any envelopes and boxes must be disposed of 
before entering the building.
    [ssquf] 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.
    [ssquf] U.S. Postal Service first-class, Express, and Priority mail 
must be

[[Page 39731]]

addressed to 445 12th Street SW., Washington, DC 20554.
    42. People with Disabilities: To request materials in accessible 
formats for people with disabilities (braille, large print, electronic 
files, audio format), send an email to mailto:[email protected] or call 
the Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 
202-418-0432 (tty).
    43. Availability of Documents. Comments and reply comments will be 
publically available online via ECFS.\84\ These documents will also be 
available for public inspection during regular business hours in the 
FCC Reference Information Center, which is located in Room CY-A257 at 
FCC Headquarters, 445 12th Street SW., Washington, DC 20554. The 
Reference Information Center is open to the public Monday through 
Thursday from 8:00 a.m. to 4:30 p.m. and Friday from 8:00 a.m. to 11:30 
a.m.
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    \84\ Documents will generally be available electronically in 
ASCII, Microsoft Word, and/or Adobe Acrobat.
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E. Additional Information

    44. For additional information on this proceeding, contact Maria 
Mullarkey, [email protected], of the Media Bureau, Policy 
Division, (202) 418-2120.

IV. Ordering Clauses

    45. Accordingly, it is ordered that, pursuant to the Twenty-First 
Century Communications and Video Accessibility Act of 2010, Public Law 
111-260, 124 Stat. 2751, and the authority found in Sections 4(i), 
4(j), 303, 330(b), 713, and 716 of the Communications Act of 1934, as 
amended, 47 U.S.C. 154(i), 154(j), 303, 330(b), 613, and 617, this 
Second Further Notice of Proposed Rulemaking is adopted.
    46. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Second Further Notice of Proposed Rulemaking in MB Docket 
No. 12-107, 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. 2015-16323 Filed 7-9-15; 8:45 am]
 BILLING CODE 6712-01-P