[Federal Register Volume 89, Number 158 (Thursday, August 15, 2024)]
[Rules and Regulations]
[Pages 66254-66268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-16935]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[WC Docket Nos. 19-195, 11-10; FCC 24-72; FR ID 233875]


Establishing the Digital Opportunity Data Collection; Modernizing 
the FCC Form 477 Data Program

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission or FCC) codifies the Broadband Data Collection (BDC) 
challenge process deadline as required by the bipartisan Infrastructure 
Investment and Jobs Act, delegates authority to the offices and bureaus 
to conduct BDC audits, and clarifies that providers must submit 
detailed data to seek restoration for those locations or areas on the 
National Broadband Map (NBM).

DATES: Effective September 16, 2024.

FOR FURTHER INFORMATION CONTACT: For further information, please 
contact, Will Holloway, Broadband Data Task Force, at 
[email protected] or (202) 418-2334.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Fourth 
Report and Order in WC Docket Nos. 19-195 and 11-10, released on July 
12, 2024. The full text of this document is available at the following 
internet address: https://www.fcc.gov/document/fcc-takes-steps-update-broadband-data-collection-processes or by using the Commission's EDOCS 
web page at www.fcc.gov/edocs.
    Paperwork Reduction Act. The Fourth Report and Order rulemaking 
required under the Broadband DATA Act is exempt from review by Office 
of Management and Budget (OMB) and from the requirements of the 
Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. As a result, 
the Fourth Report and Order will not be submitted to OMB for review 
under section 3507(d) of the PRA.
    Congressional Review Act. The Commission has determined, and the 
Administrator of the Office of Information and Regulatory Affairs, 
Office of Management and Budget, concurs, that this rule is ``non-
major'' under the Congressional Review Act, 5 U.S.C. 804(2). The 
Commission will send a copy of the Fourth Report and Order and 
Declaratory Ruling to Congress and the Government Accountability Office 
pursuant to 5 U.S.C. 801(a)(1)(A). The Commission will submit the draft 
Fourth Report and Order and Declaratory Ruling to the Administrator of 
the Office of Information and Regulatory Affairs, Office of Management 
and Budget, for concurrence as to whether this rule is ``major'' or 
``non-major'' under the Congressional Review Act, 5 U.S.C. 804(2).

Synopsis

A. Codifying the Adjudication Deadlines for Availability Challenges

    1. In the Infrastructure Investment and Jobs Act of 2021 (IIJA), 
Congress amended the Broadband DATA Act to require the Commission to 
resolve any challenges received as part of the BDC ``not later than 90 
days after the date on which a final response by a provider to a 
challenge to the accuracy of a map . . . is complete.'' Since the 
inception of the availability challenge processes, the Commission has 
followed this deadline. However, in the Fourth Report and Order we take 
steps to codify this deadline and memorialize the Commission's 
challenge processes in the BDC rules.
    2. The following paragraphs describe how the Commission has 
implemented this 90-day deadline for processing fixed and mobile 
service challenges, and how we will amend our rules to reflect these 
existing practices and the minor modifications to those practices. For 
each type of challenge, we indicate the date on which we deem a 
provider's response to the challenge to be ``final'' and ``complete'' 
for purposes of triggering the 90-day deadline required by the IIJA. As 
set forth in the proposed rule published elsewhere in this issue of the 
Federal Register, we tentatively conclude and seek comment on whether 
this deadline should apply to fixed and mobile availability challenges 
only, and not to challenges to data in the Fabric.
    3. Fixed Service Challenges. For challenges to the accuracy of 
fixed broadband availability data and coverage maps, the Commission's 
rules currently provide that ``within 60 days of receiving an alert'' 
to a challenge, ``a provider shall reply in the portal by: (i) 
[a]ccepting the allegation(s) raised by the challenger . . . or (ii) 
[d]enying the allegation(s) raised by the challenger, in which case the 
provider shall provide evidence . . . that the provider serves (or 
could and is willing to serve) the challenged location.'' If the 
provider accepts the allegations raised by the challenger, the provider 
must ``submit a correction for the challenged location in the online 
portal within 30 days of its portal reply.'' The rules state that a 
provider's failure to respond to the challenge within the applicable 
timeframe ``shall result in a finding against the provider.'' ``If the 
provider denies the allegation(s) raised by the challenger,'' the rules 
state that ``the provider and the challenger shall have 60 days after 
the provider submits its reply to attempt to resolve the challenge.'' 
The rules further provide that if the parties are unable to reach 
consensus within 60 days after submission of the provider's reply in 
the portal, then the affected provider shall report the status of 
efforts to resolve the challenge in the online portal, after which the 
Commission will review the evidence and make a determination, either: 
(i) in favor of the challenger, in which case the provider shall update 
its BDC information within 30 days of the decision; or (ii) in favor of 
the provider, in which case the location will no longer be subject to 
the ``in dispute/pending resolution'' designation on the coverage maps.
    4. To codify the requirements of the IIJA, we amend our rules to 
state that in cases where a fixed broadband provider disputes the 
allegations raised by the challenger, the response from the provider 
will be final and complete when the provider reports on the status of 
its efforts to resolve the challenge, at which time, the 90-day 
deadline for adjudication of the challenge will begin to run. For 
example, if a consumer submits a challenge to a fixed provider's 
availability data on February 28 and, after initial review, Commission 
staff accepts the challenge and alerts the provider (via the BDC 
system) of the challenge on March 1, the service provider would have 
until April 30 to either concede or dispute the challenge allegations 
(by submitting an ``initial response'' to the challenge in the BDC 
system). If the provider disputes the challenge allegation on April 30, 
then the parties would have until June 29 to attempt to resolve the 
challenge and for the service provider to report on the outcome of 
those discussions by submitting a ``final response'' to the challenge 
in the BDC system. This status report is the ``final response by [the] 
provider.'' Accordingly, if the provider continues to dispute the 
challenge in its

[[Page 66255]]

final response (i.e., the challenge has not been resolved by the 
parties), the 90-day deadline will commence once the provider submits 
its final response. If the provider submits its final response on the 
deadline of June 29, Commission staff would thus be required to 
adjudicate the challenge no later than September 27.
    5. The only challenges that require FCC adjudication are those that 
the challenged provider does not concede and for which the challenger 
and the challenged provider are unable to reach a consensus. We 
therefore find that the deadline for FCC action most appropriately 
begins once the provider has submitted its final response reporting on 
the status of the parties' efforts to resolve a disputed challenge. 
Starting the 90-day period when a provider reports on the status of the 
parties' efforts to resolve the challenge, and not earlier, is 
consistent with the statutory objective that the adjudication period 
begin ``after the date on which a final response by a provider to a 
challenge to the accuracy of a map . . . is complete.'' We find that 
this process will also help the Commission adjudicate challenges 
efficiently because Commission staff will be able to begin the process 
of review and adjudication as soon as they have information on the 
outcome of the dispute resolution process.
    6. The process we outline above is largely consistent with current 
Commission practice; however, we modify the existing process in two 
respects. First, the 90-day deadline for Commission adjudication of a 
fixed challenge will begin on the day after the service provider 
submits the status report, regardless of whether that report is 
provided on or before the 60th day allowed for under the rules. Our 
former practice was to begin the 90-day period on the day after the 
deadline for submission of the status report, even when the challenged 
provider submits the report prior to the deadline. Based on the 
Commission's experience adjudicating challenges, this change in our 
process is appropriate in order to more expeditiously adjudicate fixed 
challenges when a final status report is filed prior to the end of the 
full 60-day period. Second, we clarify that when a provider corrects or 
updates its final response before the end of the 60-day resolution 
period, the adjudication period will restart upon the date of the 
recertification of the final response (unless the Commission has 
already adjudicated the challenge prior to the reversion of the final 
response).
    7. Mobile Service Challenges. The Commission's rules provide that, 
for areas with a cognizable challenge to the accuracy of mobile 
broadband data and coverage maps, ``providers either must submit a 
rebuttal to the challenge within a 60-day period of being notified of 
the challenge or concede and have the challenged area identified on the 
mobile coverage map as an area that lacks sufficient service.'' The 
rules also provide that ``[i]f needed to ensure an adequate review, 
[Office of Economics and Analytics (OEA)] may also require that the 
provider submit other data in addition to the data initially submitted 
. . . .'' This supplemental data must be submitted within 60 days of 
OEA's request.
    8. We amend our mobile service challenge rules to provide that, 
when a mobile provider disputes a challenge, the provider's response 
will be final and complete on the 60th day after the provider is 
notified of the challenge (i.e., the deadline for submitting challenge 
rebuttal data). The 90-day adjudication deadline required under the 
IIJA will begin to run on the day after the deadline for submitting the 
challenge rebuttal data, and this will also apply in cases where a 
provider responds to a challenge sooner than 60 days after it is 
notified of the challenge. In cases where Commission staff request 
supplemental data from a provider after receiving the provider's 
initial response, the adjudication period will restart the day after 
the deadline by which the supplemental data is due to the Commission 
(within 60 days of the request for supplemental data). Initiating the 
adjudication period the day after the deadline for submitting the 
challenge rebuttal data, or the day after any supplemental data 
requested by staff is due, will ensure that the Commission has 
sufficient information to adjudicate challenges and will create 
administrative efficiencies by synchronizing the timing for resolving 
challenges with the monthly notifications we issue to providers 
regarding the status of challenged areas. We recognize that we are 
adopting different procedures for calculating the adjudication deadline 
for mobile availability challenges than for fixed challenges. However, 
this difference is justified because the data involved in submitting 
fixed and mobile challenges differ considerably, as do the 
methodologies for staff review and adjudication of fixed and mobile 
challenges. Mobile challenges are created through on-the-ground speed 
test data and, in most cases, mobile service providers respond to 
challenges using similar on-the-ground speed test data--both of which 
are submitted into the BDC system in a structured format. The BDC 
system performs analyses of these speed test results based upon 
hexagonal areas, and Commission staff use the results of these analyses 
to determine whether or not a challenge should be upheld or overturned. 
In contrast, fixed availability challenges are based upon a variety of 
Challenge Category Codes, with a large degree of variation in the types 
of evidence and information submitted both to create a challenge as 
well as by fixed providers in seeking to overturn challenges. We note 
that, under the process we adopt in the Fourth Report and Order, mobile 
challenges will be resolved considerably more quickly in most instances 
than the time allowed under the deadline due to the methodology used to 
review and process mobile challenge data. Accordingly, we believe that 
this different treatment of mobile and fixed challenge review and 
adjudication is warranted.

B. Audits

    9. Background. The Broadband DATA Act requires the Commission to 
verify the accuracy of the data reported by broadband internet access 
service providers. The Act also requires that the Commission conduct 
regular audits of the information submitted by providers in the BDC. 
Under the Commission's rules, the Commission must ``conduct regular 
audits of the information submitted by providers in their [BDC] 
filings,'' which ``(1) [m]ay be random, as determined by the 
Commission; or (2) [c]an be required in cases where there may be 
patterns of filing incorrect information, as determined by the 
Commission.'' In the Second Report and Order (85 FR 50886, August 18, 
2020), the Commission determined that it will audit availability data 
and other information submitted by all types of providers of broadband 
internet access service (e.g., mobile and terrestrial fixed wireless, 
fixed wired, and satellite). The Commission further specified that 
audit tools will include field surveys, investigations, and annual 
random audits to verify data accuracy, and that audits may additionally 
be initiated based on an unusual number of crowdsourced complaints.
    10. The Commission has implemented its statutory obligations to 
verify the accuracy of the data reported in biannual BDC submissions in 
a variety of ways. As an initial matter, the Commission developed an 
entirely new system for ingesting, validating, and aggregating provider 
availability data for publication on the NBM. The new BDC system 
requires all data to be submitted in a structured format according to

[[Page 66256]]

rigorous data specifications and imposes comprehensive data-quality 
checks at the time data is uploaded and submitted into the BDC. These 
checks identify either ``hard'' errors that require a correction by the 
filer prior to certifying and submitting the data, or ``soft'' flags 
that alert the filer to a potential anomaly or error and requires an 
explanation if no change to the data is made. These measures ensure 
that service providers file higher-quality data.
    11. After the close of each biannual BDC filing window, Commission 
staff conduct verifications of the submitted data to test their 
accuracy and reliability. These efforts include: review of the ``soft'' 
system flags, supporting data submitted in conjunction with 
availability data, and other filer data to identify potential anomalies 
or errors; outreach to filers based upon these reviews requesting their 
correction or explanation of the data; and vetting of subsequent 
changes to or explanations of the data by providers. Commission staff 
have performed several thousand data verifications using this process. 
In addition, Commission staff have initiated formal verification 
inquiries of the data submitted by certain fixed and mobile broadband 
providers. In response to such inquiries, providers have been required 
to submit explanation information relevant to the inquiry, such as 
network infrastructure data for the targeted verification area.
    12. In addition to these verifications, Commission staff have 
initiated audits of discrete coverage areas within the service 
availability reported by several mobile service providers. OEA and 
Wireless Telecommunications Bureau (WTB) staff have conducted these 
audits in coordination with the Broadband Data Task Force, Enforcement 
Bureau, Office of Engineering and Technology (OET), and Commission 
leadership. Commission staff have conducted two variations of mobile 
audits to date. The first involve on-the-ground testing of mobile 
service performance in resolution 8 hexagonal cells (``hex areas'') 
within a single county. Commission staff, in coordination with its 
third-party contractors, selected the target county to audit and 
conducted on-the-ground testing based upon a variety of factors, 
including the number of service providers who claim some amount of 
network coverage in the county, the number of accessible hex areas in 
the county, the population density of the county, and the marginal 
coverage in the area. The second variation of audits involves requests 
for infrastructure data from service providers for a handful of 
randomly selected counties. These counties were selected using several 
of the factors used to identify areas for on-the-ground testing as well 
as other factors, such as the geography and topography of the counties.
    13. To standardize the types of information the Commission requests 
through formal verification inquires and the second variation of mobile 
audits, as well as to provide transparency and certainty to service 
providers, the Commission has released an updated data specification 
for provider infrastructure data submitted in the challenge, 
verification, and audit processes. This data specification sets forth 
standardized, structured data that all service providers (fixed 
wireline, terrestrial fixed wireless, mobile wireless, and satellite) 
should be prepared to submit in response to verification inquiries and 
audits (as well as in response to challenges in instances where mobile 
wireless service providers are able to respond to mobile challenges 
with infrastructure data).
    14. Discussion. Notwithstanding the clear mandates in the Broadband 
DATA Act, the Second Report and Order, and the Commission's rules that 
we verify and audit availability data as part of the BDC, we take this 
opportunity to clarify the procedural mechanics of our audit rules. 
Accordingly, we begin by formally delegating authority to OEA, in 
coordination with WTB, the Wireline Competition Bureau (WCB), and the 
Space Bureau (SB), to continue to perform audits using the processes 
and data specifications currently available. We also reaffirm the 
authority of OEA, in coordination with the relevant bureaus and 
offices, to continue performing fixed and mobile data verifications 
using existing methods or any other methods and data specifications it 
may develop in the future for verifying availability data. We direct 
OEA, in coordination with WTB, WCB, and SB, to establish methodologies 
and procedures for selecting service providers (either fixed or mobile) 
and targeted locations or areas subject to random audit, as well as for 
determining ``patterns of filing incorrect information'' sufficient to 
warrant an audit. In the latter case--as well as in the case of 
verification inquiries--the methodology(ies) will continue to be based 
on anomalies or inconsistencies in the data a provider submits as part 
of its biannual submission and/or information submitted through, or 
behavior demonstrated in, the availability challenge processes or 
crowdsource submissions.
    15. This delegation of authority specifically includes the 
authority to identify and select specific providers and geographic 
areas or Broadband Serviceable Locations subject to formal verification 
or audit. As part of this delegation, OEA is vested with authority to 
develop processes or procedures for randomly selecting geographic areas 
or locations to audit, as well as for determining ``cases where there 
may be patterns of filing incorrect information,'' consistent with our 
rules. OEA, in coordination with WTB, WCB, and SB, is best qualified to 
make individualized determinations of the areas or locations that 
should be audited (subject to the conditions in Sec.  1.7006(a) 
outlined above), given its subject-matter expertise in reviewing the 
underlying availability data and its understanding of resources (e.g., 
budget, staff time) available to perform audits.
    16. We further delegate authority to OEA, in coordination with WTB, 
WCB, and SB (as appropriate), to collect all data required to conduct a 
thorough and complete audit, including, but not limited to, the 
information set forth in the BDC Infrastructure Data Specification, on-
the-ground mobile performance data (in the case of audits of mobile 
coverage areas), and any other data OEA determines are necessary to 
assess an entity's claims that it makes service available to audited 
locations or areas. This authority permits OEA, in coordination with 
the relevant bureaus and offices, to use third-party contractors to 
gather and analyze the collected data, subject to the requirement that 
Commission staff supervise and direct any third-party contractors used 
to gather or analyze the data.

C. Ministerial Changes

    17. The part 1, subpart V rules in title 47 refer to the ``Digital 
Opportunity Data Collection'' or ``DODC.'' This is the name formerly 
given to the data collection that the Commission now refers to as the 
Broadband Data Collection or BDC. In the Fourth Report and Order, we 
make ministerial changes to our rules to replace references to the 
``Digital Opportunity Data Collection'' or ``DODC'' with references to 
the Broadband Data Collection or BDC, as appropriate. These rule 
amendments are exempt from notice-and-comment requirements of the 
Administrative Procedure Act (APA) because they are procedural rules 
that ``do not themselves alter the rights or interests of parties.'' 
Notice and comment for these rule changes are also unnecessary because 
the edits are non-substantive and have no impact on regulated parties 
or the public.

[[Page 66257]]

I. Declaratory Ruling

A. Restoration of Locations and Areas Removed Through Availability 
Challenges, Audits and Verifications

    18. We next issue a declaratory ruling clarifying that providers 
must submit more detailed data in subsequent BDC filings when claiming 
availability for locations or areas that were previously removed 
through the challenge, verification or audit processes. In doing so, we 
specify the types of existing data specifications for demonstrating 
availability at previously removed locations or areas for certain types 
of challenges. The Broadband DATA Act required that the Commission 
adopt rules for ``the biannual collection and dissemination of granular 
data . . . relating to the availability and quality of service with 
respect to terrestrial fixed, fixed wireless, satellite, and mobile 
broadband internet access service,'' and ``processes through which the 
Commission can verify the accuracy of data'' submitted by broadband 
service providers. The Broadband DATA Act recognizes that, due to 
ongoing changes in the availability of internet services across the 
United States and its Territories, the Broadband Data Collection is an 
iterative process and that the NBM must be updated regularly with 
refreshed data to reflect the on-the-ground reality of mass-market 
broadband availability. Providers must therefore report availability 
data as of June 30 and December 31 of each year, which may include 
expanded coverage since the provider's last filing (due, for example, 
to build-out of additional infrastructure since the previous 
submission) and, in some cases, reduced coverage (due, for example, to 
the retirement of discontinued technologies or infrastructure, or to 
network capacity constraints preventing the connection of new 
customers).
    19. We clarify that in cases where a provider's claimed 
availability at a location (in the case of a fixed provider) or in an 
area (in the case of a mobile provider) is removed from the NBM as the 
result of a lost or conceded challenge, a verification inquiry, or an 
audit (together, a ``Removed Location or Area''), our rules require the 
provider to submit updated availability data in a subsequent BDC filing 
if it can demonstrate that it can make service available to the Removed 
Location or Area. We interpret the Commission's rules, as well as our 
statutory obligation to verify the accuracy of the data displayed on 
the NBM, to require a restoration process for Removed Locations or 
Areas in order to ensure that the data on the NBM remain accurate and 
to improve the usefulness of the coverage maps. In so doing, we 
delegate authority to OEA, in coordination with WCB, WTB, OET, and SB, 
to develop detailed data specifications setting out the categories of 
information a provider must submit when seeking to restore a previously 
Removed Location or Area through a subsequent BDC filing.
    20. If a provider's reported availability at a location or in an 
area is removed from the NBM as the result of a verification, audit, or 
challenge, a Removed Location or Area is created in the BDC system. The 
ways in which these Removed Locations or Areas are generated is 
described below.
    21. Verifications and Audits. As discussed above, the Commission 
has robustly implemented its statutory obligations to verify the 
accuracy and reliability of broadband availability data that providers 
submit to the Commission and to audit provider-reported availability 
data. If, in response to a Commission-initiated verification or audit, 
a provider is unable to submit sufficient information supporting its 
reported coverage at a location or area, the verification or audit may 
lead to a Removed Location or Area, which would include all or part of 
the area subject to the verification or audit.
    22. Service Availability Challenges. The Broadband DATA Act 
directed the Commission to ``establish a user-friendly challenge 
process through which consumers, State, local, and Tribal governmental 
entities, and other entities or individuals may submit coverage data to 
the Commission to challenge the accuracy of'' the information on the 
NBM. In the Third Report and Order (86 FR 18124, April 7, 2021), the 
Commission adopted rules establishing the fixed availability challenge 
process, including the procedures the Commission uses to resolve fixed 
availability challenges. Similarly, the Commission adopted rules for 
challenges to mobile wireless coverage data based upon lack of service 
or poor service quality, such as slow delivered speeds.
    23. A service availability challenge may result in a Removed 
Location or Area for several reasons. First, a provider may 
affirmatively concede a challenge. Second, a provider's failure to 
respond to a challenge within the applicable timeframes results in a 
finding against the provider, thereby leading to an automatic 
concession. An automatic concession may be (i) intentional, because the 
provider agrees with the challenger and chooses to allow the challenge 
to automatically result in a finding against that provider or (ii) 
unintentional, due to a missed deadline, a misunderstanding of the BDC 
processes, or some other act or omission. Finally, a fixed or mobile 
availability challenge could be adjudicated by the FCC in the 
challenger's favor. When a provider concedes or loses a challenge, it 
must update its availability data to align with the lost or conceded 
challenge and certify the updated data; the location or area lost or 
conceded as a result of the challenge process thereby constitutes a 
Removed Location or Area.
    24. Since the launch of the NBM on November 18, 2022, the 
verification, audit, and challenge processes have been active and have 
led to meaningful updates to the map. In just the first year following 
the map's launch, approximately 3.7 million fixed availability 
challenges were accepted and submitted to providers for response, 
resulting in more than 2.5 million updates to the fixed availability 
data on the NBM. In approximately the same timeframe, 35 cognizable 
mobile challenges resulted in 18 corrections to mobile wireless 
coverage data on the NBM. To date, FCC staff have initiated thousands 
of fixed data verification inquiries, as well as audits, which have 
resulted in updates to hundreds of provider submissions. These 
processes are open and ongoing, and new verification efforts, audits, 
and challenges are regularly initiated and resolved. Meanwhile, 
significant Federal investments in broadband infrastructure have been 
either awarded or deployed since the launch of the NBM, which will 
produce meaningful expansions of broadband availability across the 
United States and Territories.
    25. Given the various ways in which broadband service availability 
can both expand and contract, it is entirely possible, and in fact, 
very likely, that a provider who previously reported mass-market 
broadband internet service available at a Removed Location or Area may 
subsequently make such service available to the Removed Location or 
Area. It is critical that the BDC be able to capture these types of 
developments in broadband availability over time.

B. Legal Authority for Implementing Location Restoration

    26. Pursuant to the Act, the BDC captures changes in broadband 
availability data over time to ensure that the NBM remains accurate. 
Each BDC filing is a snapshot of broadband availability on a particular 
date, and each verification, audit, and/or challenge is applicable to 
availability information at that particular time. However, Removed 
Locations or Areas

[[Page 66258]]

``persist'' from one BDC filing to the next, in order to promote active 
participation in the challenge, verification, and audit processes by 
service providers and to alleviate the need for challengers and the 
Commission to repeatedly correct previously adjudicated locations or 
areas. Therefore, it is essential that providers submit updated data 
into the BDC for Removed Locations and Areas, and that the BDC provide 
an efficient, standardized way for the NBM to reflect where a provider 
reports in a subsequent filing that it can make service available at a 
previously Removed Location or Area. Without such a requirement or 
pathway to restore Removed Locations or Areas, the NBM would become 
outdated, and therefore less accurate--contrary to both Congress's and 
the Commission's intent.
    27. Accordingly, we clarify that the requirement that BDC ``filings 
shall be made each year on or before March 1 (reporting data as of 
December 31 of the prior year) and September 1 (reporting data as of 
June 30 of the current year)'' includes an obligation that providers 
submit data on service availability to Removed Locations or Areas. 
Because the BDC rules require providers to report their broadband 
availability data accurately for each filing round and certify that 
those filings are accurate, it would be a violation of the Commission's 
rules for a provider to not report coverage at a Removed Location or 
Area where it now makes service available.
    28. Requiring updates based upon changed circumstances is 
consistent with our statutory obligation to ``establish . . . processes 
through which the Commission can verify the accuracy of the data 
submitted'' by service providers in the BDC. This includes a process 
for verifying data submitted through the challenge process ``in order 
to ensure the reliability of that data.'' The Broadband DATA Act cannot 
hold its intended purpose if a service provider is not required to and 
does not have a pathway for reporting service availability to a 
location that, though previously unserved, is now capable of receiving 
the reported service. Clarifying this requirement, and establishing a 
pathway for restoring a previously Removed Location or Area improves 
the usefulness of the coverage maps by ensuring that the data on the 
NBM are timely and accurate. As noted by CTIA--The Wireless 
Association, where a provider has completed new deployments, service 
upgrades, or otherwise added more capacity to its network, the BDC must 
allow that provider to include those locations in a subsequent filing; 
without such a mechanism to restore these locations, the NBM would be 
underinclusive and could cause confusion for consumers.
    29. Moreover, clarifying this requirement and establishing a 
pathway for reporting Removed Locations or Areas is consistent with 
prior Commission direction in the context of mobile wireless coverage 
data submissions. The Commission previously contemplated that changed 
circumstances could lead to improved coverage at an area previously 
lost by a mobile wireless provider in the mobile challenge process. In 
the Third Report and Order, the Commission stated that if a mobile 
provider ``that has failed to rebut a challenge subsequently takes 
remedial action to improve coverage at the location of the challenge, 
the provider must notify the Commission of the actions it has taken to 
improve its coverage and provide either on-the-ground test data or 
infrastructure data to verify its improved coverage.'' While the 
Commission did not include similar language regarding fixed challenges, 
the rationale applies equally to both types of broadband services: if a 
provider lost or conceded a challenge but the provider is now able to 
produce additional evidence supporting its claim that it can make 
broadband service available at the previously Removed Location or Area, 
the BDC must implement a pathway to restoration.
    30. We make clear that the obligation to submit updated data in 
subsequent filings extends to locations and areas that were removed 
because the provider previously failed to participate in the challenge 
processes or provided insufficient evidence in response to the 
challenge. For example, where a provider automatically conceded a 
challenge due to a misunderstanding of our rules or the BDC system, it 
is possible that the provider actually made service available at the 
resulting Removed Location or Area at the time the challenge was 
submitted. Similarly, because FCC adjudications are limited to the 
evidence submitted by the challenger and the provider, a challenge 
could be upheld due to insufficient evidence submitted by the provider 
in response to the challenge, even if the provider actually makes 
service available at the Removed Locations or Areas. In all of these 
instances, in order for the NBM to accurately reflect, on an ongoing 
basis, the broadband services that are available at each location or 
area, we must require providers to submit updated data and establish a 
pathway for restoring a Removed Location or Area.

C. Data Requirements for Restoration

    31. In order to preserve the integrity of the challenge processes, 
including our obligation under the Broadband DATA Act to ``mitigate the 
time and expense incurred by, and the administrative burdens placed on, 
entities and individuals'' in our challenge processes, providers must 
submit data to support a request in a subsequent availability filing to 
include a Removed Location or Area. Further, a data requirement 
mitigates the administrative burdens on the Commission to conduct 
verifications and audits of data submitted by providers at Removed 
Locations or Areas in subsequent filings.
    32. Specifically, a provider must submit detailed information 
demonstrating that it can now make service available at the Removed 
Location or Area. The data elements included in the Data Specifications 
for Provider Infrastructure Data in the Challenge, Verification, and 
Audit Processes are indicative of the kind of information that we 
expect to be persuasive in the restoration of locations or areas 
removed from the NBM as a result of the challenge process, verification 
inquiries or audits, where infrastructure data would be relevant. 
Providers are already familiar with these existing data specifications, 
and for the most part already retain this information. Specifically, 
fixed provider infrastructure data would be relevant for consumer and 
bulk fixed availability challenges lost under Challenge Category Codes 
4, 5, 6, 8, or 9, and bulk fixed availability challenges lost under 
Challenge Category Codes 1 or 2. Additionally, mobile provider 
infrastructure data would be informative when providers seek to restore 
coverage areas lost in the mobile challenge process as well as removed 
in response to verification inquiries or audits. While these existing 
data specifications are persuasive for restoration of locations and 
areas previously removed based on the above-referenced challenge codes, 
these data are not relevant to all challenge codes. Further, these data 
specifications do not include speed test data for mobile service. We, 
therefore, seek comment, in the proposed rule published elsewhere in 
this issue of the Federal Register, on what information commenters 
believe would be persuasive in the restoration of fixed availability 
data removed from the NBM under the remaining Challenge Category Codes, 
as well as the potential use of on-the-ground speed test data for 
restoration of mobile coverage areas.

[[Page 66259]]

    33. We additionally clarify that the data requirements for 
restoring a provider's availability to a previously Removed Location or 
Area are distinct from the rules and standards governing availability 
challenges. A provider's restored availability information can be 
subsequently challenged in accordance with rule Sec.  1.7006(d) (for 
fixed availability data) and (e) and (f) (for mobile availability 
data).
    34. We direct OEA, in consultation with WCB, WTB, OET, and SB, to 
develop and publish data specifications detailing the information a 
provider must submit when seeking to restore a previously Removed 
Location or Area through a subsequent BDC filing--starting with the 
infrastructure data included in the Data Specifications for Provider 
Infrastructure Data in the Challenge, Verification, and Audit 
Processes. We also direct OEA, in consultation with the other named 
bureaus and offices, to make the necessary system changes to implement 
the clarifications in the Declaratory Ruling. After the data 
specifications are published, a provider may upload the specific 
information necessary to restore a Removed Location or Area in the BDC 
system. Where Commission staff deems that information sufficient to 
demonstrate availability, the location or area will be restored on the 
National Broadband Map.

II. Final Regulatory Flexibility Analysis

    35. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the Establishing the Digital Opportunity Data 
Collection; Modernizing the FCC Form 477 Data Program, Digital 
Opportunity Data Collection Third Further Notice of Proposed Rulemaking 
(Third FNPRM) released in July 2020 (85 FR 50911, August 18, 2020). The 
Federal Communications Commission (Commission) sought written public 
comment on the proposals in the Third FNPRM, including comments on the 
IRFA. No comments were filed addressing the IRFA. This Final Regulatory 
Flexibility Analysis (FRFA) conforms to the RFA.

A. Need for, and Objectives of, the Final Rules

    36. In the Fourth Report and Order, the Commission takes steps to 
adopt certain requirements mandated by the Broadband DATA Act, as well 
as adopting improvements to the data collection. Specifically, the 
Fourth Report and Order modifies the Broadband Data Collection (BDC) 
rules to codify expedited challenge adjudication deadlines as required 
by the Infrastructure Investment and Jobs Act (IIJA), such as a 90-day 
deadline for fixed services challenges, as well as provide a specific 
delegation of authority to the Office of Economics and Analytics (OEA), 
in coordination with certain other bureaus and offices, to conduct 
audits of broadband data submitted by providers (as required under the 
Broadband DATA Act). Through the adoption of these rules, the 
Commission is implementing targeted changes that further address its 
long-standing objective of working towards closing the digital divide 
by improving the processes for filers, some of whom consist of small 
entities.

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

    37. There were no comments filed that specifically addressed the 
rules and policies proposed in the IRFA.

C. Response to Comments by the Chief Counsel for Advocacy of the Small 
Business Administration

    38. Pursuant to the Small Business Jobs Act of 2010, which amended 
the RFA, the Commission is required to respond to any comments filed by 
the Chief Counsel for Advocacy of the Small Business Administration 
(SBA), and to provide a detailed statement of any change made to the 
proposed rules as a result of those comments. The Chief Counsel did not 
file comments in response to the proposed rules in this proceeding.

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

    39. 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 SBA.
    40. Small Businesses, Small Organizations, Small Governmental 
Jurisdictions. Our actions, over time, may affect small entities that 
are not easily categorized at present. We therefore describe, at the 
outset, three broad groups of small entities that could be directly 
affected herein. First, while there are industry specific size 
standards for small businesses that are used in the regulatory 
flexibility analysis, according to data from SBA's Office of Advocacy, 
in general a small business is an independent business having fewer 
than 500 employees. These types of small businesses represent 99.9% of 
all businesses in the United States, which translates to 33.2 million 
businesses.
    41. Next, the type of small entity described as a ``small 
organization'' is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
The Internal Revenue Service (IRS) uses a revenue benchmark of $50,000 
or less to delineate its annual electronic filing requirements for 
small exempt organizations. Nationwide, for tax year 2022, there were 
approximately 530,109 small exempt organizations in the U.S. reporting 
revenues of $50,000 or less according to the registration and tax data 
for exempt organizations available from the IRS.
    Finally, the small entity described as a ``small governmental 
jurisdiction'' is defined generally as ``governments of cities, 
counties, towns, townships, villages, school districts, or special 
districts, with a population of less than fifty thousand.'' U.S. Census 
Bureau data from the 2022 Census of Governments indicate there were 
90,837 local governmental jurisdictions consisting of general purpose 
governments and special purpose governments in the United States. Of 
this number, there were 36,845 general purpose governments (county, 
municipal, and town or township) with populations of less than 50,000 
and 11,879 special purpose governments (independent school districts) 
with enrollment populations of less than 50,000. Accordingly, based on 
the 2022 U.S. Census of Governments data, we estimate that at least 
48,724 entities fall into the category of ``small governmental 
jurisdictions.''
    42. Broadband internet Access Service Providers. The broadband 
internet access service provider industry has changed since the 
definition was introduced in 2007. The data cited below may therefore 
include entities that no longer provide broadband internet access 
service and may exclude entities that now provide such service. To 
ensure that this FRFA describes the universe of small entities that our 
action might affect, we discuss in turn several different types of 
entities that might be providing broadband internet access

[[Page 66260]]

service. We note that, although we have no specific information on the 
number of small entities that provide broadband internet access service 
over unlicensed spectrum, we included these entities in our Initial 
Regulatory Flexibility Analysis.
    43. Wired Broadband internet Access Service Providers (Wired ISPs). 
Providers of wired broadband internet access service include various 
types of providers except dial-up internet access providers. Wireline 
service that terminates at an end user location or mobile device and 
enables the end user to receive information from and/or send 
information to the internet at information transfer rates exceeding 200 
kilobits per second (kbps) in at least one direction is classified as a 
broadband connection under the Commission's rules. Wired broadband 
internet services fall in the Wired Telecommunications Carriers 
industry. The SBA small business size standard for this industry 
classifies firms having 1,500 or fewer employees as small. U.S. Census 
Bureau data for 2017 show that there were 3,054 firms that operated in 
this industry for the entire year. Of this number, 2,964 firms operated 
with fewer than 250 employees.
    44. Additionally, according to Commission data on internet access 
services as of June 30, 2019, nationwide there were approximately 2,747 
providers of connections over 200 kbps in at least one direction using 
various wireline technologies. The Commission does not collect data on 
the number of employees for providers of these services, therefore, at 
this time we are not able to estimate the number of providers that 
would qualify as small under the SBA's small business size standard. 
However, in light of the general data on fixed technology service 
providers in the Commission's 2022 Communications Marketplace Report, 
we believe that the majority of wireline internet access service 
providers can be considered small entities.
    45. Internet Service Providers (Non-Broadband). Internet access 
service providers using client-supplied telecommunications connections 
(e.g., dial-up ISPs) as well as Voice over internet Protocol (VoIP) 
service providers using client-supplied telecommunications connections 
fall in the industry classification of All Other Telecommunications. 
The SBA small business size standard for this industry classifies firms 
with annual receipts of $35 million or less as small. For this 
industry, U.S. Census Bureau data for 2017 show that there were 1,079 
firms in this industry that operated for the entire year. Of those 
firms, 1,039 had revenue of less than $25 million. Consequently, under 
the SBA size standard a majority of firms in this industry can be 
considered small.
    46. Wireline Providers.
    47. Wired Telecommunications Carriers. The U.S. Census Bureau 
defines this industry as 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 communications 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. 
Wired Telecommunications Carriers are also referred to as wireline 
carriers or fixed local service providers.
    48. The SBA small business size standard for Wired 
Telecommunications Carriers classifies firms having 1,500 or fewer 
employees as small. U.S. Census Bureau data for 2017 show that there 
were 3,054 firms that operated in this industry for the entire year. Of 
this number, 2,964 firms operated with fewer than 250 employees. 
Additionally, based on Commission data in the 2022 Universal Service 
Monitoring Report, as of December 31, 2021, there were 4,590 providers 
that reported they were engaged in the provision of fixed local 
services. Of these providers, the Commission estimates that 4,146 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, most of these providers can be considered 
small entities.
    49. Local Exchange Carriers (LECs). Neither the Commission nor the 
SBA has developed a size standard for small businesses specifically 
applicable to local exchange services. Providers of these services 
include both incumbent and competitive local exchange service 
providers. Wired Telecommunications Carriers is the closest industry 
with an SBA small business size standard. Wired Telecommunications 
Carriers are also referred to as wireline carriers or fixed local 
service providers. The SBA small business size standard for Wired 
Telecommunications Carriers classifies firms having 1,500 or fewer 
employees as small. U.S. Census Bureau data for 2017 show that there 
were 3,054 firms that operated in this industry for the entire year. Of 
this number, 2,964 firms operated with fewer than 250 employees. 
Additionally, based on Commission data in the 2022 Universal Service 
Monitoring Report, as of December 31, 2021, there were 4,590 providers 
that reported they were fixed local exchange service providers. Of 
these providers, the Commission estimates that 4,146 providers have 
1,500 or fewer employees. Consequently, using the SBA's small business 
size standard, most of these providers can be considered small 
entities.
    50. Incumbent Local Exchange Carriers (Incumbent LECs). Neither the 
Commission nor the SBA have developed a small business size standard 
specifically for incumbent local exchange carriers. Wired 
Telecommunications Carriers is the closest industry with an SBA small 
business size standard. The SBA small business size standard for Wired 
Telecommunications Carriers classifies firms having 1,500 or fewer 
employees as small. U.S. Census Bureau data for 2017 show that there 
were 3,054 firms in this industry that operated for the entire year. Of 
this number, 2,964 firms operated with fewer than 250 employees. 
Additionally, based on Commission data in the 2022 Universal Service 
Monitoring Report, as of December 31, 2021, there were 1,212 providers 
that reported they were incumbent local exchange service providers. Of 
these providers, the Commission estimates that 916 providers have 1,500 
or fewer employees. Consequently, using the SBA's small business size 
standard, the Commission estimates that the majority of incumbent local 
exchange carriers can be considered small entities.
    51. Competitive Local Exchange Carriers (CLECs). Neither the 
Commission nor the SBA has developed a size standard for small 
businesses specifically applicable to local exchange services. 
Providers of these services include several types of competitive local 
exchange service providers. Wired Telecommunications Carriers is the 
closest industry with an SBA small business size standard. The SBA 
small business size standard for Wired Telecommunications Carriers 
classifies firms having 1,500 or fewer employees as small. U.S. Census 
Bureau data for 2017 show that there were 3,054 firms that operated in 
this industry for the entire year. Of this number, 2,964 firms operated 
with fewer than 250

[[Page 66261]]

employees. Additionally, based on Commission data in the 2022 Universal 
Service Monitoring Report, as of December 31, 2021, there were 3,378 
providers that reported they were competitive local exchange service 
providers. Of these providers, the Commission estimates that 3,230 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, most of these providers can be considered 
small entities.
    52. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA have developed a small business size standard specifically for 
Interexchange Carriers. Wired Telecommunications Carriers is the 
closest industry with an SBA small business size standard. The SBA 
small business size standard for Wired Telecommunications Carriers 
classifies firms having 1,500 or fewer employees as small. U.S. Census 
Bureau data for 2017 show that there were 3,054 firms that operated in 
this industry for the entire year. Of this number, 2,964 firms operated 
with fewer than 250 employees. Additionally, based on Commission data 
in the 2022 Universal Service Monitoring Report, as of December 31, 
2021, there were 127 providers that reported they were engaged in the 
provision of interexchange services. Of these providers, the Commission 
estimates that 109 providers have 1,500 or fewer employees. 
Consequently, using the SBA's small business size standard, the 
Commission estimates that the majority of providers in this industry 
can be considered small entities.
    53. Operator Service Providers (OSPs). Neither the Commission nor 
the SBA has developed a small business size standard specifically for 
operator service providers. The closest applicable industry with an SBA 
small business size standard is Wired Telecommunications Carriers. The 
SBA small business size standard classifies a business as small if it 
has 1,500 or fewer employees. U.S. Census Bureau data for 2017 show 
that there were 3,054 firms in this industry that operated for the 
entire year. Of this number, 2,964 firms operated with fewer than 250 
employees. Additionally, based on Commission data in the 2022 Universal 
Service Monitoring Report, as of December 31, 2021, there were 20 
providers that reported they were engaged in the provision of operator 
services. Of these providers, the Commission estimates that all 20 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, all of these providers can be considered 
small entities.
    54. Other Toll Carriers. Neither the Commission nor the SBA has 
developed a definition for small businesses specifically applicable to 
Other Toll Carriers. This category includes toll carriers that do not 
fall within the categories of interexchange carriers, operator service 
providers, prepaid calling card providers, satellite service carriers, 
or toll resellers. Wired Telecommunications Carriers is the closest 
industry with an SBA small business size standard. The SBA small 
business size standard for Wired Telecommunications Carriers classifies 
firms having 1,500 or fewer employees as small. U.S. Census Bureau data 
for 2017 show that there were 3,054 firms in this industry that 
operated for the entire year. Of this number, 2,964 firms operated with 
fewer than 250 employees. Additionally, based on Commission data in the 
2022 Universal Service Monitoring Report, as of December 31, 2021, 
there were 90 providers that reported they were engaged in the 
provision of other toll services. Of these providers, the Commission 
estimates that 87 providers have 1,500 or fewer employees. 
Consequently, using the SBA's small business size standard, most of 
these providers can be considered small entities.
    55. Wireless Providers--Fixed and Mobile.
    56. The broadband internet access service provider category covered 
by these new rules may cover multiple wireless firms and categories of 
regulated wireless services. Thus, to the extent the wireless services 
listed below are used by wireless firms for broadband internet access 
service, the actions may have an impact on those small businesses as 
set forth above and further below. In addition, for those services 
subject to auctions, we note that, as a general matter, the number of 
winning bidders that claim to 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 and transfers or reportable eligibility events, unjust 
enrichment issues are implicated.
    57. Wireless Telecommunications Carriers (except Satellite). This 
industry comprises establishments engaged in operating and maintaining 
switching and transmission facilities to provide communications via the 
airwaves. Establishments in this industry have spectrum licenses and 
provide services using that spectrum, such as cellular services, paging 
services, wireless internet access, and wireless video services. The 
SBA size standard for this industry classifies a business as small if 
it has 1,500 or fewer employees. U.S. Census Bureau data for 2017 show 
that there were 2,893 firms in this industry that operated for the 
entire year. Of that number, 2,837 firms employed fewer than 250 
employees. Additionally, based on Commission data in the 2022 Universal 
Service Monitoring Report, as of December 31, 2021, there were 594 
providers that reported they were engaged in the provision of wireless 
services. Of these providers, the Commission estimates that 511 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, most of these providers can be considered 
small entities.
    58. Wireless Communications Services. Wireless Communications 
Services (WCS) can be used for a variety of fixed, mobile, 
radiolocation, and digital audio broadcasting satellite services. 
Wireless spectrum is made available and licensed for the provision of 
wireless communications services in several frequency bands subject to 
part 27 of the Commission's rules. Wireless Telecommunications Carriers 
(except Satellite) is the closest industry with an SBA small business 
size standard applicable to these services. The SBA small business size 
standard for this industry classifies a business as small if it has 
1,500 or fewer employees. U.S. Census Bureau data for 2017 show that 
there were 2,893 firms that operated in this industry for the entire 
year. Of this number, 2,837 firms employed fewer than 250 employees. 
Thus, under the SBA size standard, the Commission estimates that a 
majority of licensees in this industry can be considered small.
    59. The Commission's small business size standards with respect to 
WCS involve eligibility for bidding credits and installment payments in 
the auction of licenses for the various frequency bands included in 
WCS. When bidding credits are adopted for the auction of licenses in 
WCS frequency bands, such credits may be available to several types of 
small businesses based average gross revenues (small, very small and 
entrepreneur) pursuant to the competitive bidding rules adopted in 
conjunction with the requirements for the auction and/or as identified 
in the designated entities section in part 27 of the Commission's rules 
for the specific WCS frequency bands.
    60. In frequency bands where licenses were subject to auction, the 
Commission notes that as a general matter, the

[[Page 66262]]

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. Further, the Commission does not 
generally track subsequent business size unless, in the context of 
assignments or transfers, unjust enrichment issues are implicated. 
Additionally, since the Commission does not collect data on the number 
of employees for licensees providing these services, at this time we 
are not able to estimate the number of licensees with active licenses 
that would qualify as small under the SBA's small business size 
standard.
    61. 1670-1675 MHz Services. These wireless communications services 
can be used for fixed and mobile uses, except aeronautical mobile. 
Wireless Telecommunications Carriers (except Satellite) is the closest 
industry with an SBA small business size standard applicable to these 
services. The SBA size standard for this industry classifies a business 
as small if it has 1,500 or fewer employees. U.S. Census Bureau data 
for 2017 show that there were 2,893 firms that operated in this 
industry for the entire year. Of this number, 2,837 firms employed 
fewer than 250 employees. Thus, under the SBA size standard, the 
Commission estimates that a majority of licensees in this industry can 
be considered small.
    62. According to Commission data as of November 2021, there were 
three active licenses in this service. The Commission's small business 
size standards with respect to 1670-1675 MHz Services involve 
eligibility for bidding credits and installment payments in the auction 
of licenses for these services. For licenses in the 1670-1675 MHz 
service band, a ``small business'' is defined as an entity that, 
together with its affiliates and controlling interests, has average 
gross revenues not exceeding $40 million for the preceding three years, 
and a ``very small business'' is defined as an entity that, together 
with its affiliates and controlling interests, has had average annual 
gross revenues not exceeding $15 million for the preceding three years. 
The 1670-1675 MHz service band auction's winning bidder did not claim 
small business status.
    63. In frequency bands where licenses were subject to auction, 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. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these services, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
    64. Wireless Telephony. Wireless telephony includes cellular, 
personal communications services, and specialized mobile radio 
telephony carriers. The closest applicable industry with an SBA small 
business size standard is Wireless Telecommunications Carriers (except 
Satellite). The size standard for this industry under SBA rules is that 
a business is small if it has 1,500 or fewer employees. For this 
industry, U.S. Census Bureau data for 2017 show that there were 2,893 
firms that operated for the entire year. Of this number, 2,837 firms 
employed fewer than 250 employees. Additionally, based on Commission 
data in the 2022 Universal Service Monitoring Report, as of December 
31, 2021, there were 331 providers that reported they were engaged in 
the provision of cellular, personal communications services, and 
specialized mobile radio services. Of these providers, the Commission 
estimates that 255 providers have 1,500 or fewer employees. 
Consequently, using the SBA's small business size standard, most of 
these providers can be considered small entities.
    65. Broadband Personal Communications Service. The broadband 
personal communications services (PCS) spectrum encompasses services in 
the 1850-1910 and 1930-1990 MHz bands. The closest industry with an SBA 
small business size standard applicable to these services is Wireless 
Telecommunications Carriers (except Satellite). The SBA small business 
size standard for this industry classifies a business as small if it 
has 1,500 or fewer employees. U.S. Census Bureau data for 2017 show 
that there were 2,893 firms that operated in this industry for the 
entire year. Of this number, 2,837 firms employed fewer than 250 
employees. Thus, under the SBA size standard, the Commission estimates 
that a majority of licensees in this industry can be considered small.
    66. Based on Commission data as of November 2021, there were 
approximately 5,060 active licenses in the Broadband PCS service. The 
Commission's small business size standards with respect to Broadband 
PCS involve eligibility for bidding credits and installment payments in 
the auction of licenses for these services. In auctions for these 
licenses, the Commission defined ``small business'' as an entity that, 
together with its affiliates and controlling interests, has average 
gross revenues not exceeding $40 million for the preceding three years, 
and a ``very small business'' as an entity that, together with its 
affiliates and controlling interests, has had average annual gross 
revenues not exceeding $15 million for the preceding three years. 
Winning bidders claiming small business credits won Broadband PCS 
licenses in C, D, E, and F Blocks.
    67. In frequency bands where licenses were subject to auction, 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. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these, at this time we are not able to estimate the 
number of licensees with active licenses that would qualify as small 
under the SBA's small business size standard.
    68. Specialized Mobile Radio Licenses. Special Mobile Radio (SMR) 
licenses allow licensees to provide land mobile communications services 
(other than radiolocation services) in the 800 MHz and 900 MHz spectrum 
bands on a commercial basis including but not limited to services used 
for voice and data communications, paging, and facsimile services, to 
individuals, Federal Government entities, and other entities licensed 
under part 90 of the Commission's rules. Wireless Telecommunications 
Carriers (except Satellite) is the closest industry with an SBA small 
business size standard applicable to these services. The SBA size 
standard for this industry classifies a business as small if it has 
1,500 or fewer employees. For this industry, U.S. Census Bureau data 
for 2017 show that there were 2,893 firms in this industry that 
operated for the entire year. Of this number, 2,837 firms employed 
fewer than 250 employees. Additionally, based on Commission data in the 
2022 Universal Service Monitoring Report, as of December 31, 2021, 
there were 95 providers that reported they were of SMR (dispatch) 
providers. Of this number, the Commission estimates that all 95 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard,

[[Page 66263]]

these 119 SMR licensees can be considered small entities.
    69. Based on Commission data as of December 2021, there were 3,924 
active SMR licenses. However, since the Commission does not collect 
data on the number of employees for licensees providing SMR services, 
at this time we are not able to estimate the number of licensees with 
active licenses that would qualify as small under the SBA's small 
business size standard. Nevertheless, for purposes of this analysis the 
Commission estimates that the majority of SMR licensees can be 
considered small entities using the SBA's small business size standard.
    70. Lower 700 MHz Band Licenses. The lower 700 MHz band encompasses 
spectrum in the 698-746 MHz frequency bands. Permissible operations in 
these bands include flexible fixed, mobile, and broadcast uses, 
including mobile and other digital new broadcast operation; fixed and 
mobile wireless commercial services (including frequency division 
duplex (FDD)- and time division duplex (TDD)-based services); as well 
as fixed and mobile wireless uses for private, internal radio needs, 
two-way interactive, cellular, and mobile television broadcasting 
services. Wireless Telecommunications Carriers (except Satellite) is 
the closest industry with an SBA small business size standard 
applicable to licenses providing services in these bands. The SBA small 
business size standard for this industry classifies a business as small 
if it has 1,500 or fewer employees. U.S. Census Bureau data for 2017 
show that there were 2,893 firms that operated in this industry for the 
entire year. Of this number, 2,837 firms employed fewer than 250 
employees. Thus, under the SBA size standard, the Commission estimates 
that a majority of licensees in this industry can be considered small.
    71. According to Commission data as of December 2021, there were 
approximately 2,824 active Lower 700 MHz Band licenses. The 
Commission's small business size standards with respect to Lower 700 
MHz Band licensees involve eligibility for bidding credits and 
installment payments in the auction of licenses. For auctions of Lower 
700 MHz Band licenses the Commission adopted criteria for three groups 
of small businesses. A very small business was defined as an entity 
that, together with its affiliates and controlling interests, has 
average annual gross revenues not exceeding $15 million for the 
preceding three years, a small business was defined as an entity that, 
together with its affiliates and controlling interests, has average 
gross revenues not exceeding $40 million for the preceding three years, 
and an entrepreneur was defined as an entity that, together with its 
affiliates and controlling interests, has average gross revenues not 
exceeding $3 million for the preceding three years. In auctions for 
Lower 700 MHz Band licenses seventy-two winning bidders claiming a 
small business classification won 329 licenses, twenty-six winning 
bidders claiming a small business classification won 214 licenses, and 
three winning bidders claiming a small business classification won all 
five auctioned licenses.
    72. In frequency bands where licenses were subject to auction, 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. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these services, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
    73. Upper 700 MHz Band Licenses. The upper 700 MHz band encompasses 
spectrum in the 746-806 MHz bands. Upper 700 MHz D Block licenses are 
nationwide licenses associated with the 758-763 MHz and 788-793 MHz 
bands. Permissible operations in these bands include flexible fixed, 
mobile, and broadcast uses, including mobile and other digital new 
broadcast operation; fixed and mobile wireless commercial services 
(including FDD- and TDD-based services); as well as fixed and mobile 
wireless uses for private, internal radio needs, two-way interactive, 
cellular, and mobile television broadcasting services. Wireless 
Telecommunications Carriers (except Satellite) is the closest industry 
with an SBA small business size standard applicable to licenses 
providing services in these bands. The SBA small business size standard 
for this industry classifies a business as small if it has 1,500 or 
fewer employees. U.S. Census Bureau data for 2017 show that there were 
2,893 firms that operated in this industry for the entire year. Of that 
number, 2,837 firms employed fewer than 250 employees. Thus, under the 
SBA size standard, the Commission estimates that a majority of 
licensees in this industry can be considered small.
    74. According to Commission data as of December 2021, there were 
approximately 152 active Upper 700 MHz Band licenses. The Commission's 
small business size standards with respect to Upper 700 MHz Band 
licensees involve eligibility for bidding credits and installment 
payments in the auction of licenses. For the auction of these licenses, 
the Commission defined a ``small business'' as an entity that, together 
with its affiliates and controlling principals, has average gross 
revenues not exceeding $40 million for the preceding three years, and a 
``very small business'' an entity that, together with its affiliates 
and controlling principals, has average gross revenues that are not 
more than $15 million for the preceding three years. Pursuant to these 
definitions, three winning bidders claiming very small business status 
won five of the twelve available licenses.
    75. In frequency bands where licenses were subject to auction, 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. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these services, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
    76. 700 MHz Guard Band Licensees. The 700 MHz Guard Band 
encompasses spectrum in 746-747/776-777 MHz and 762-764/792-794 MHz 
frequency bands. Wireless Telecommunications Carriers (except 
Satellite) is the closest industry with an SBA small business size 
standard applicable to licenses providing services in these bands. The 
SBA small business size standard for this industry classifies a 
business as small if it has 1,500 or fewer employees. U.S. Census 
Bureau data for 2017 show that there were 2,893 firms that operated in 
this industry for the entire year. Of this number, 2,837 firms employed 
fewer than 250 employees. Thus, under the SBA size standard, the 
Commission estimates that a majority of licensees in this industry can 
be considered small.
    77. According to Commission data as of December 2021, there were 
approximately 224 active 700 MHz Guard Band licenses. The Commission's 
small business size standards with respect to 700 MHz Guard Band

[[Page 66264]]

licensees involve eligibility for bidding credits and installment 
payments in the auction of licenses. For the auction of these licenses, 
the Commission defined a ``small business'' as an entity that, together 
with its affiliates and controlling principals, has average gross 
revenues not exceeding $40 million for the preceding three years, and a 
``very small business'' an entity that, together with its affiliates 
and controlling principals, has average gross revenues that are not 
more than $15 million for the preceding three years. Pursuant to these 
definitions, five winning bidders claiming one of the small business 
status classifications won 26 licenses, and one winning bidder claiming 
small business won two licenses. None of the winning bidders claiming a 
small business status classification in these 700 MHz Guard Band 
license auctions had an active license as of December 2021.
    78. In frequency bands where licenses were subject to auction, 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. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these services, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
    79. Air-Ground Radiotelephone Service. Air-Ground Radiotelephone 
Service is a wireless service in which licensees are authorized to 
offer and provide radio telecommunications service for hire to 
subscribers in aircraft. A licensee may provide any type of air-ground 
service (i.e., voice telephony, broadband internet, data, etc.) to 
aircraft of any type, and serve any or all aviation markets 
(commercial, government, and general). A licensee must provide service 
to aircraft and may not provide ancillary land mobile or fixed services 
in the 800 MHz air-ground spectrum.
    80. The closest industry with an SBA small business size standard 
applicable to these services is Wireless Telecommunications Carriers 
(except Satellite). The SBA small business size standard for this 
industry classifies a business as small if it has 1,500 or fewer 
employees. U.S. Census Bureau data for 2017 show that there were 2,893 
firms that operated in this industry for the entire year. Of this 
number, 2,837 firms employed fewer than 250 employees. Thus, under the 
SBA size standard, the Commission estimates that a majority of 
licensees in this industry can be considered small.
    81. Based on Commission data as of December 2021, there were 
approximately four licensees with 110 active licenses in the Air-Ground 
Radiotelephone Service. The Commission's small business size standards 
with respect to Air-Ground Radiotelephone Service involve eligibility 
for bidding credits and installment payments in the auction of 
licenses. For purposes of auctions, the Commission defined ``small 
business'' as an entity that, together with its affiliates and 
controlling interests, has average gross revenues not exceeding $40 
million for the preceding three years, and a ``very small business'' as 
an entity that, together with its affiliates and controlling interests, 
has had average annual gross revenues not exceeding $15 million for the 
preceding three years. In the auction of Air-Ground Radiotelephone 
Service licenses in the 800 MHz band, neither of the two winning 
bidders claimed small business status.
    82. In frequency bands where licenses were subject to auction, 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. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, the Commission 
does not collect data on the number of employees for licensees 
providing these services therefore, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
    83. Advanced Wireless Services (AWS)--(1710-1755 MHz and 2110-2155 
MHz bands (AWS-1); 1915-1920 MHz, 1995-2000 MHz, 2020-2025 MHz and 
2175-2180 MHz bands (AWS-2); 2155-2175 MHz band (AWS-3); 2000-2020 MHz 
and 2180-2200 MHz (AWS-4)). Spectrum is made available and licensed in 
these bands for the provision of various wireless communications 
services. Wireless Telecommunications Carriers (except Satellite) is 
the closest industry with an SBA small business size standard 
applicable to these services. The SBA small business size standard for 
this industry classifies a business as small if it has 1,500 or fewer 
employees. U.S. Census Bureau data for 2017 show that there were 2,893 
firms that operated in this industry for the entire year. Of this 
number, 2,837 firms employed fewer than 250 employees. Thus, under the 
SBA size standard, the Commission estimates that a majority of 
licensees in this industry can be considered small.
    84. According to Commission data as of December 2021, there were 
approximately 4,472 active AWS licenses. The Commission's small 
business size standards with respect to AWS involve eligibility for 
bidding credits and installment payments in the auction of licenses for 
these services. For the auction of AWS licenses, the Commission defined 
a ``small business'' as an entity with average annual gross revenues 
for the preceding three years not exceeding $40 million, and a ``very 
small business'' as an entity with average annual gross revenues for 
the preceding three years not exceeding $15 million. Pursuant to these 
definitions, 57 winning bidders claiming status as small or very small 
businesses won 215 of 1,087 licenses. In the most recent auction of AWS 
licenses 15 of 37 bidders qualifying for status as small or very small 
businesses won licenses.
    85. In frequency bands where licenses were subject to auction, 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. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these services, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
    86. 3650-3700 MHz band. Wireless broadband service licensing in the 
3650-3700 MHz band provides for nationwide, non-exclusive licensing of 
terrestrial operations, utilizing contention-based technologies, in the 
3650 MHz band (i.e., 3650-3700 MHz). Licensees are permitted to provide 
services on a non-common carrier and/or on a common carrier basis. 
Wireless broadband services in the 3650-3700 MHz band fall in the 
Wireless Telecommunications Carriers (except Satellite) industry with 
an SBA small business size standard that classifies a business as small 
if it has 1,500 or fewer employees. U.S. Census Bureau data for

[[Page 66265]]

2017 show that there were 2,893 firms that operated in this industry 
for the entire year. Of this number, 2,837 firms employed fewer than 
250 employees. Thus, under the SBA size standard, the Commission 
estimates that a majority of licensees in this industry can be 
considered small.
    87. The Commission has not developed a small business size standard 
applicable to 3650-3700 MHz band licensees. Based on the licenses that 
have been granted, however, we estimate that the majority of licensees 
in this service are small internet Access Service Providers (ISPs). As 
of November 2021, Commission data shows that there were 902 active 
licenses in the 3650-3700 MHz band. However, since the Commission does 
not collect data on the number of employees for licensees providing 
these services, at this time we are not able to estimate the number of 
licensees with active licenses that would qualify as small under the 
SBA's small business size standard.
    88. Fixed Microwave Services. Fixed microwave services include 
common carrier, private-operational fixed, and broadcast auxiliary 
radio services. They also include the Upper Microwave Flexible Use 
Service (UMFUS), Millimeter Wave Service (70/80/90 GHz), Local 
Multipoint Distribution Service (LMDS), the Digital Electronic Message 
Service (DEMS), 24 GHz Service, Multiple Address Systems (MAS), and 
Multichannel Video Distribution and Data Service (MVDDS), where in some 
bands licensees can choose between common carrier and non-common 
carrier status. Wireless Telecommunications Carriers (except Satellite) 
is the closest industry with an SBA small business size standard 
applicable to these services. The SBA small size standard for this 
industry classifies a business as small if it has 1,500 or fewer 
employees. U.S. Census Bureau data for 2017 show that there were 2,893 
firms that operated in this industry for the entire year. Of this 
number, 2,837 firms employed fewer than 250 employees. Thus, under the 
SBA size standard, the Commission estimates that a majority of fixed 
microwave service licensees can be considered small.
    89. The Commission's small business size standards with respect to 
fixed microwave services involve eligibility for bidding credits and 
installment payments in the auction of licenses for the various 
frequency bands included in fixed microwave services. When bidding 
credits are adopted for the auction of licenses in fixed microwave 
services frequency bands, such credits may be available to several 
types of small businesses based average gross revenues (small, very 
small and entrepreneur) pursuant to the competitive bidding rules 
adopted in conjunction with the requirements for the auction and/or as 
identified in part 101 of the Commission's rules for the specific fixed 
microwave services frequency bands.
    90. In frequency bands where licenses were subject to auction, 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. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of employees for 
licensees providing these services, at this time we are not able to 
estimate the number of licensees with active licenses that would 
qualify as small under the SBA's small business size standard.
    91. Broadband Radio Service and Educational Broadband Service. 
Broadband Radio Service systems, previously referred to as Multipoint 
Distribution Service (MDS) and Multichannel Multipoint Distribution 
Service (MMDS) systems, and ``wireless cable,'' transmit video 
programming to subscribers and provide two-way high speed data 
operations using the microwave frequencies of the Broadband Radio 
Service (BRS) and Educational Broadband Service (EBS) (previously 
referred to as the Instructional Television Fixed Service (ITFS)). 
Wireless cable operators that use spectrum in the BRS often 
supplemented with leased channels from the EBS, provide a competitive 
alternative to wired cable and other multichannel video programming 
distributors. Wireless cable programming to subscribers resembles cable 
television, but instead of coaxial cable, wireless cable uses microwave 
channels.
    92. In light of the use of wireless frequencies by BRS and EBS 
services, the closest industry with an SBA small business size standard 
applicable to these services is Wireless Telecommunications Carriers 
(except Satellite). The SBA small business size standard for this 
industry classifies a business as small if it has 1,500 or fewer 
employees. U.S. Census Bureau data for 2017 show that there were 2,893 
firms that operated in this industry for the entire year. Of this 
number, 2,837 firms employed fewer than 250 employees. Thus, under the 
SBA size standard, the Commission estimates that a majority of 
licensees in this industry can be considered small.
    93. According to Commission data as December 2021, there were 
approximately 5,869 active BRS and EBS licenses. The Commission's small 
business size standards with respect to BRS involves eligibility for 
bidding credits and installment payments in the auction of licenses for 
these services. For the auction of BRS licenses, the Commission adopted 
criteria for three groups of small businesses. A very small business is 
an entity that, together with its affiliates and controlling interests, 
has average annual gross revenues exceed $3 million and did not exceed 
$15 million for the preceding three years, a small business is an 
entity that, together with its affiliates and controlling interests, 
has average gross revenues exceed $15 million and did not exceed $40 
million for the preceding three years, and an entrepreneur is an entity 
that, together with its affiliates and controlling interests, has 
average gross revenues not exceeding $3 million for the preceding three 
years. Of the ten winning bidders for BRS licenses, two bidders 
claiming the small business status won 4 licenses, one bidder claiming 
the very small business status won three licenses and two bidders 
claiming entrepreneur status won six licenses. One of the winning 
bidders claiming a small business status classification in the BRS 
license auction has an active licenses as of December 2021.
    94. The Commission's small business size standards for EBS define a 
small business as an entity that, together with its affiliates, its 
controlling interests and the affiliates of its controlling interests, 
has average gross revenues that are not more than $55 million for the 
preceding five (5) years, and a very small business is an entity that, 
together with its affiliates, its controlling interests and the 
affiliates of its controlling interests, has average gross revenues 
that are not more than $20 million for the preceding five (5) years. In 
frequency bands where licenses were subject to auction, 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. Further, the Commission does not generally track subsequent 
business size unless, in the context of assignments or transfers, 
unjust enrichment issues are implicated. Additionally, since the 
Commission does not collect data on the number of

[[Page 66266]]

employees for licensees providing these services, at this time we are 
not able to estimate the number of licensees with active licenses that 
would qualify as small under the SBA's small business size standard.
    95. Satellite Service Providers.
    96. Satellite Telecommunications. This industry comprises firms 
``primarily engaged in providing 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.'' Satellite 
telecommunications service providers include satellite and earth 
station operators. The SBA small business size standard for this 
industry classifies a business with $38.5 million or less in annual 
receipts as small. U.S. Census Bureau data for 2017 show that 275 firms 
in this industry operated for the entire year. Of this number, 242 
firms had revenue of less than $25 million. Additionally, based on 
Commission data in the 2022 Universal Service Monitoring Report, as of 
December 31, 2021, there were 65 providers that reported they were 
engaged in the provision of satellite telecommunications services. Of 
these providers, the Commission estimates that approximately 42 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, a little more than half of these 
providers can be considered small entities.
    97. All Other Telecommunications. This industry is comprised of 
establishments primarily engaged in providing specialized 
telecommunications services, such as satellite tracking, communications 
telemetry, and radar station operation. This industry also includes 
establishments primarily engaged in providing satellite terminal 
stations and associated facilities connected with one or more 
terrestrial systems and capable of transmitting telecommunications to, 
and receiving telecommunications from, satellite systems. Providers of 
internet services (e.g., dial-up ISPs) or VoIP services, via client-
supplied telecommunications connections are also included in this 
industry. The SBA small business size standard for this industry 
classifies firms with annual receipts of $35 million or less as small. 
U.S. Census Bureau data for 2017 show that there were 1,079 firms in 
this industry that operated for the entire year. Of those firms, 1,039 
had revenue of less than $25 million. Based on this data, the 
Commission estimates that the majority of ``All Other 
Telecommunications'' firms can be considered small.
    98. Cable Service Providers.
    99. Because section 706 of the Act requires us to monitor the 
deployment of broadband using any technology, we anticipate that some 
broadband service providers may not provide telephone service. 
Accordingly, we describe below other types of firms that may provide 
broadband services, including cable companies, MDS providers, and 
utilities, among others.
    100. Cable and Other Subscription Programming. The U.S. Census 
Bureau defines this industry as establishments primarily engaged in 
operating studios and facilities for the broadcasting of programs on a 
subscription or fee basis. The broadcast programming is typically 
narrowcast in nature (e.g., limited format, such as news, sports, 
education, or youth-oriented). These establishments produce programming 
in their own facilities or acquire programming from external sources. 
The programming material is usually delivered to a third party, such as 
cable systems or direct-to-home satellite systems, for transmission to 
viewers. The SBA small business size standard for this industry 
classifies firms with annual receipts less than $41.5 million as small. 
Based on U.S. Census Bureau data for 2017, 378 firms operated in this 
industry during that year. Of that number, 149 firms operated with 
revenue of less than $25 million a year and 44 firms operated with 
revenue of $25 million or more. Based on this data, the Commission 
estimates that a majority of firms in this industry are small.
    101. Cable Companies and Systems (Rate Regulation). The Commission 
has developed its own small business size standard 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. Based 
on industry data, there are about 420 cable companies in the U.S. Of 
these, only seven have more than 400,000 subscribers. In addition, 
under the Commission's rules, a ``small system'' is a cable system 
serving 15,000 or fewer subscribers. Based on industry data, there are 
about 4,139 cable systems (headends) in the U.S. Of these, about 639 
have more than 15,000 subscribers. Accordingly, the Commission 
estimates that the majority of cable companies and cable systems are 
small.
    102. Cable System Operators (Telecom Act Standard). The 
Communications Act of 1934, as amended, contains a size standard for a 
``small cable operator,'' which is ``a cable operator that, directly or 
through an affiliate, serves in the aggregate fewer than one 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.'' For purposes of the Telecom Act Standard, the 
Commission determined that a cable system operator that serves fewer 
than 498,000 subscribers, either directly or through affiliates, will 
meet the definition of a small cable operator. Based on industry data, 
only six cable system operators have more than 498,000 subscribers. 
Accordingly, the Commission estimates that the majority of cable system 
operators are small under this size standard. We note however, that the 
Commission neither requests nor collects information on whether cable 
system operators are affiliated with entities whose gross annual 
revenues exceed $250 million. Therefore, 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.
    103. All Other Telecommunications.
    104. Electric Power Generators, Transmitters, and Distributors. The 
U.S. Census Bureau defines the utilities sector industry as comprised 
of ``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.'' This 
industry group is categorized based on fuel source and includes 
Hydroelectric Power Generation, Fossil Fuel Electric Power Generation, 
Nuclear Electric Power Generation, Solar Electric Power Generation, 
Wind Electric Power Generation, Geothermal Electric Power Generation, 
Biomass Electric Power Generation, Other Electric Power Generation, 
Electric Bulk Power Transmission and Control and Electric Power 
Distribution.
    105. The SBA has established a small business size standard for 
each of these groups based on the number of employees which ranges from 
having fewer than 250 employees to having fewer than 1,000 employees. 
U.S. Census Bureau data for 2017 indicate that for the Electric Power 
Generation,

[[Page 66267]]

Transmission, and Distribution industry there were 1,693 firms that 
operated in this industry for the entire year. Of this number, 1,552 
firms had less than 250 employees. Based on this data and the 
associated SBA size standards, the majority of firms in this industry 
can be considered small entities.

E. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities

    106. We expect that some of the rules adopted in the Fourth Report 
and Order will impose new or additional reporting, recordkeeping, and/
or other compliance obligations on small entities. The Fourth Report 
and Order modifies the BDC rules to codify the expedited availability 
challenge adjudication deadlines to implement the IIJA mandate. 
Commission staff already functionally implemented this deadline for the 
availability challenge process as required by the IIJA. In an effort to 
comply with the Broadband DATA Act, we now memorialize in our rules the 
procedures that Commission staff have followed since the start of the 
challenge process. The Fourth Report and Order also delegates authority 
to OEA to collect any and all data required to conduct a thorough and 
complete audit process. Finally, we formally amend the name given to 
the data collection from the ``Digital Opportunity Data Collection'' to 
the ``Broadband Data Collection.'' As to the cost of compliance, at 
present, the record contains insufficient information to either 
quantify compliance costs for small entities as a result of the adopted 
rules, or determine whether there will be a need for small entities to 
hire attorneys, engineers, consultants, or other professionals.
    107. The Commission believes that any additional burdens imposed by 
our audit of provider data are outweighed by the significant benefit to 
be gained from more precise broadband deployment data. As discussed 
above, although the Commission cannot quantify the cost of compliance 
with the requirements in the Fourth Report and Order, we believe the 
modifications to the BDC rules are necessary to comply with the 
Broadband DATA Act and complete accurate broadband coverage maps.

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

    108. The RFA requires an agency to provide, ``a description of the 
steps the agency has taken to minimize the significant economic impact 
on small entities . . . including a statement of the factual, policy, 
and legal reasons for selecting the alternative adopted in the final 
rule and why each one of the other significant alternatives to the rule 
considered by the agency which affect the impact on small entities was 
rejected.''
    109. The Commission's actions in the Fourth Report and Order are 
primarily in response to the legislative enactment of the Broadband 
DATA Act to develop better quality, more useful, and more granular 
broadband deployment data, as well as our mandate to codify expedited 
challenge adjudication deadlines as required by the IIJA. In 
considering the comments in the record, we were mindful of the time, 
money, and resources that some small entities incur to complete these 
requirements.
    110. For example, in implementing the IIJA's requirements, we 
considered alternatives for how the Commission could address situations 
where a challenger and a challenged provider cannot reach a consensus 
as Sec.  1.7006(d)(6) requires. In the Fourth Report and Order, we set 
forth that the shot-clock for Commission action should begin once the 
provider has reported on the status of the parties' efforts to resolve 
the challenge. Taking this step allows small and other entities to have 
sufficient time to resolve challenges on their own, where possible, 
before Commission staff become involved while helping the Commission 
adjudicate challenges more efficiently.

G. Report to Congress

    111. The Commission will send a copy of the Fourth Report and 
Order, including the FRFA, in a report to Congress pursuant to the 
Congressional Review Act. In addition, the Commission will send a copy 
of the Fourth Report and Order, including the FRFA, to the Chief 
Counsel for Advocacy of the SBA. A copy of the Fourth Report and Order 
and FRFA (or summaries thereof) will also be published in the Federal 
Register.

III. Ordering Clauses

    112. Accordingly, it is ordered, pursuant to sections 1 through 4, 
7, 201, 254, 301, 303, 309, 319, 332, 403, and 641 through 646 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151 through 154, 157, 
201, 254, 301, 303, 309, 319, 332, 403, 641 through 646, the Fourth 
Report and Order and Declaratory Ruling is adopted.
    113. It is further ordered that part 1 of the Commission's rules is 
amended as set forth in Appendix A of the Fourth Report and Order.
    114. It is further ordered that the Fourth Report and Order shall 
be effective 30 days after publication in the Federal Register.
    115. It is further ordered that the Declaratory Ruling shall be 
effective upon adoption by the Commission.
    116. It is further ordered that the Office of the Managing 
Director, Performance Program Management, shall send a copy of the 
Fourth Report and Order and Declaratory Ruling in a report to be sent 
to Congress and the Government Accountability Office pursuant to the 
Congressional Review Act, 5 U.S.C. 801(a)(1)(A).
    117. It is further ordered that the Office of the Secretary shall 
send a copy of the Fourth Report and Order, including the Final 
Regulatory Flexibility Analysis and the Initial Regulatory Flexibility 
Analysis, to the Chief Counsel for Advocacy of the Small Business 
Administration.

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure, Broadband, Reporting and 
recordkeeping requirements, Telecommunications.

Federal Communications Commission
Marlene Dortch,
Secretary.

FEDERAL COMMUNICATIONS COMMISSION

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 1 as follows:

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 continues to read as follows:

    Authority: 47 U.S.C. chs. 2, 5, 9, 13; 28 U.S.C. 2461 note; 47 
U.S.C. 1754, unless otherwise noted.


0
2. Amend Sec.  1.7006 by:
0
a. Revising paragraph (a) and paragraph (d)(6) introductory text;
0
b. Redesignating paragraphs (e)(5) through (7) as paragraphs (e)(6) 
through (8);
0
c. Adding a new paragraph (e)(5);
0
d. Redesignating paragraphs (f)(6) and (7) as paragraphs (f)(7) and 
(8); and
0
e. Adding a new paragraph (f)(6).
    The revisions and additions read as follows:


Sec.  1.7006  Data verification.

    (a) Audits. The Office of Economics and Analytics, in coordination 
with the Wireless Telecommunications Bureau, Wireline Competition 
Bureau, and

[[Page 66268]]

Space Bureau, shall conduct regular audits of the information submitted 
by providers in their Broadband Data Collection filings. The audits:
    (1) May be random, as determined by the Office of Economics and 
Analytics; or
    (2) Can be required in cases where there may be patterns of filing 
incorrect information, as determined by the Office of Economics and 
Analytics.
* * * * *
    (d) * * *
    (6) If the parties are unable to reach consensus within 60 days 
after submission of the provider's reply in the portal, then the 
affected provider shall report the status of efforts to resolve the 
challenge in the online portal. After the affected provider reports on 
the status of these efforts (including any amended report submitted 
prior to the 60-day deadline), the Commission shall have 90 days to 
review the evidence and make a determination, either:
* * * * *
    (e) * * *
    (5) Commission staff will resolve the challenge within 90 days 
following the 60th day after which the provider is notified of the 
challenge (i.e., the deadline for submitting challenge rebuttal data), 
except that, should the Office of Economics and Analytics (OEA) request 
supplemental information from a provider after receiving the provider's 
initial challenge response, the Commission will resolve the challenge 
within 90 days following the 60th day after which staff request such 
supplemental data (i.e., 90 days after the deadline for when the 
supplemental data is due to OEA).
* * * * *
    (f) * * *
    (6) Commission staff will resolve the challenge within 90 days 
following the 60th day after which the provider is notified of the 
challenge (i.e., the deadline for submitting challenge rebuttal data), 
except that, should the OEA request supplemental information from a 
provider after receiving the provider's initial challenge response, the 
Commission will resolve the challenge within 90 days following the 60th 
day after which staff request such supplemental data (i.e., 90 days 
after the deadline for when the supplemental data is due to OEA).
* * * * *


Sec. Sec.  1.7004 through 1.7010  [Amended]

0
3. In addition to the amendments set forth above, in 47 CFR part 1, 
remove the text ``Digital Opportunity Data Collection'' wherever it 
appears and add in its place the text ``Broadband Data Collection'' in 
Sec. Sec.  1.7004 through 1.70010.

[FR Doc. 2024-16935 Filed 8-14-24; 8:45 am]
BILLING CODE 6712-01-P