Before the

Federal Communications Commission

Washington, D.C. 20554

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| In the Matter of                 | * | MB Docket No: 03-50          |
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| Amendment of Part 76 of the      | ) |                              |
| Commission's Rules to Extend     | * |                              |
| Interference Protection to the   | * |                              |
| Marine and Aeronautical Distress |   |                              |
| and Safety Frequency 406.025 MHz | * |                              |
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Notice of Proposed Rule Making

**Adopted: February 24, 2003** **Released: March 5, 2003**

**Comment Date: 30 days from the date of publication in the Federal
Register**

**Reply Comment Date: 45 days from the date of publication in the
Federal Register**

By the Commission:

# introduction

1.  This Notice of Proposed Rule Making (*Notice*) proposes to modify
    Section 76.616 of our rules to include the international digital
    search and rescue frequency 406.025 MHz within the prohibition on
    cable system operation near the emergency and distress frequencies.
    As part of our continual review of our technical rules, this
    *Notice* also proposes streamlining and revising Part 76,
    Multichannel Video and Cable Television Service rules, and Part 78,
    Cable Television Relay Service rules, by eliminating outdated rules,
    correcting others, and maintaining consistency throughout different
    Commission Rule Parts.

# Background

2.  The United States, Canada, France, and Russia use COSPAS/SARSAT[^1]
    satellites to detect and locate distress signals from Emergency
    Position Indicating Radio Beacons (EPIRBs) and Emergency Locator
    Transmitters (ELTs).[^2] Older EPIRBs and ELTs use analog signals
    and operate on 121.5 MHz and 243.0 MHz. Section 76.616 of our rules
    is designed to protect the emergency frequencies at 121.5 MHz and
    243.0 MHz from interference by cable television systems operating
    near these frequencies. [^3] The Commission adopted rules
    prohibiting the transmission of carriers or other signal components
    capable of delivering peak power levels equal to or greater than 10
    microwatts (10^--5^ watts) at any point in a cable television system
    within 100 kHz of the frequency 121.5 MHz and within 50 kHz of the
    frequency 243.0 MHz. [^4]

3.  Newer EPIRBs and ELTs use digital signals and operate on 406.025
    MHz. Conforming to satellite use, the Commission adopted rules
    authorizing the use of the frequency 406.025 MHz for EPIRBs in the
    maritime radio services,[^5] aviation radio services,[^6] and for
    Personal Locator Beacons (PLBs).[^7] According to the U.S. Coast
    Guard, EPIRBs operating on the frequency 406.025 MHz account for
    four times the number of lives saved as 121.5/243.0 MHz EPIRBs and
    are responsible for only two percent of the total number of false
    alerts attributed to 121.5/243.0 MHz EPIRBs.[^8] This is due in part
    to the ability of rescue personnel to locate and detect the
    emergency signal more efficiently using the additional registration
    information contained in the 406.025 MHz signal that specifically
    identifies the beacon in distress. As a result, COSPAS/SARSAT
    announced that it would stop equipping new satellites with
    121.5/243.0 MHz processors and plans to establish a date after which
    any remaining active processors will be turned off.[^9] Carriage of
    the 406.025 MHz EPIRB is already required aboard SOLAS-class
    merchant vessels[^10] and U.S. commercial fishing vessels.[^11] The
    406.025 MHz EPIRB is also being used aboard recreational vessels at
    an increasing rate.[^12] In light of these special circumstances
    surrounding the exclusive use of 406.025 MHz as an emergency
    communication frequency, it is appropriate to consider revising our
    rules to protect 406.025 MHz against harmful interference by cable
    television systems and MVPDs.

# Discussion

4.  Analog EPIRBs and ELTs designed to transmit on 121.5 MHz and 243.0
    MHz transmit amplitude modulated continuous signals with an audio
    swept tone. The audio swept tone assists Search and Rescue (SAR)
    personnel by emitting a distinctive aural signal. These signals also
    provide distress alerting and homing assistance in emergency
    situations. Digital EPIRBs and ELTs designed to transmit on 406.025
    MHz send short digital signals to provide distress alerting in
    emergencies and use 121.5 MHz to provide homing. The 406.025 MHz
    digital signal includes information on the type of emergency, the
    country and identification code of the beacon in distress, and other
    information to significantly aid SAR operations. In addition,
    406.025 MHz distress signals can be stored on-board COSPAS/SARSAT
    satellites and then later retransmitted to a ground station, thereby
    eliminating the "blind spots"[^13] that exist with the older analog
    121.5 MHz and 243.0 MHz EPIRBs and ELTs.

## Protection of the International Digital Emergency Distress Frequency

5.  Lifesaving efforts have been significantly aided by EPIRBs and ELTs
    operating on 406.025 MHz. The use of 406.025 MHz EPIRBs has been
    increasing rapidly, particularly as mandatory requirements come into
    effect. This has led the United States and the international
    community to consider transitioning to the exclusive use of 406.025
    MHz EPIRBs in the near future.

6.  We propose to amend Section 76.616 of our rules to extend protection
    to the additional emergency frequency at 406.025 MHz. In light of
    the special circumstances surrounding the use of this emergency
    frequency, we propose forbidding the transmission of carriers or
    other signal components capable of delivering peak power levels
    equal to or greater than 10 microwatts (10^--5^ watts) at any point
    in the cable television system within 100 kHz of 406.025 MHz.
    Prohibiting cable television operation within this limited guard
    band will not substantially impact current cable television
    operation, as the closest cable television frequency in use is the
    color carrier of cable channel 54, which is approximately 800 kHz
    from 406.025 MHz.[^14] We request comment on this proposal.

## Clean up of Parts 76 and 78 of the Commission's Rules

7.  As part of our effort to keep our rules consistent and up to date,
    we propose the following deletions and updates.

8.  We are proposing to eliminate Sections 76.618 and 76.619 because the
    period allotted for grandfathered cable television operation ended
    on July 1, 1990.[^15] Consequently, we also are proposing to amend
    Section 76.610 [^16] to remove the reference to Sections 76.618 and
    76.619 found in the last sentence of the rule. In addition, we are
    deleting Note 2 of Section 76.610 because the exclusion of the
    frequency band 136-137 MHz expired on January 1, 1990.[^17] We also
    propose incorporating Section 76.620 into Section 76.610 as the
    requirements under Section 76.610 apply to all MVPDs (cable and
    non-cable).

9.  We recognize the need to add a provision to Part 78 addressing the
    cancellation or forfeiture of unused or discontinued CARS licenses.
    We feel that this provision is necessary to help conserve spectrum
    and to reclaim unused spectrum. We seek comment on how the
    cancellation or forfeiture of unused or discontinued CARS licenses
    should be implemented. We note that Section 101.65 addresses the
    same issue for fixed microwave licenses. [^18]

10. We also propose some miscellaneous corrections for various sections
    of the Commission's Rules as indicated in Appendix A.

# CONCLUsion

11. Our proposal to expand the safeguard provision to include the
    international digital emergency distress frequency at 406.025 MHz is
    intended to promote "safety of life and property through the use of
    wire and radio communication."[^19] In addition, the elimination of
    outdated regulations should increase regulatory efficiency.

# PROCEDURAL MATTERS

### Initial Regulatory Flexibility Analysis

12. As required by Section 603 of the Regulatory Flexibility Act, the
    Commission has prepared an Initial Regulatory Flexibility Analysis
    (IRFA) of the expected impact on small entities of the proposals
    suggested in this document.[^20] The IRFA is set forth in
    Appendix B. Written public comments are requested on the IRFA. In
    order to fulfill the mandate of the Contract with America
    Advancement Act of 1996 regarding the Final Regulatory Flexibility
    Analysis, we ask a number of questions regarding the prevalence of
    small businesses in the affected industries.

13. Comments must be filed in accordance with the same filing deadlines
    as comments filed in this *Notice*, but they must have a separate
    and distinct heading designating them as responses to the IRFA. The
    Commission's Consumer Information Bureau, Reference Information
    Center, SHALL SEND a copy of this *Notice*, including the IRFA, to
    the Chief Counsel for Advocacy of the Small Business Administration
    in accordance with Section 603(a) of the Regulatory Flexibility
    Act.[^21]

### Initial Paperwork Reduction Act of 1995 Analysis

14. This *Notice* contains a proposed information collection. The
    Commission, as part of its continuing effort to reduce paperwork
    burdens, invites the general public and the Office of Management and
    Budget (OMB) to comment on the information collection(s) contained
    in this *Notice*, as required by the Paperwork Reduction Act of
    1995, Public Law 104-13. Public and agency comments are due at the
    same time as other comments on this *Notice*; OMB notification of
    action is due 60 days from date of publication of this *Notice* in
    the Federal Register. Comments should address: (a) whether the
    proposed collection of information is necessary for the proper
    performance of the functions of the Commission, including whether
    the information shall have practical utility; (b) the accuracy of
    the Commission\'s burden estimates; (c) ways to enhance the quality,
    utility, and clarity of the information collected; and (d) ways to
    minimize the burden of the collection of information on the
    respondents, including the use of automated collection techniques or
    other forms of information technology.

### *Ex Parte* -- Permit-But-Disclose Proceedings

15. This is a permit-but-disclose notice and comment rule making
    proceeding. *Ex parte* presentations are permitted, except during
    the Sunshine Agenda period, provided they are disclosed as provided
    in the Commission's rules. *See generally* 47 C.F.R. §§ 1.1202,
    1.1203, 1.1206(a).

### Comment Dates

16. Pursuant to 47 C.F.R. §§ 1.415, 1.419, interested parties may file
    comments on or before **30 days from the date of publication in the
    Federal Register** and reply comments on or before **45 days from
    the date of publication in the Federal Register**. Comments may be
    filed using the Commission\'s Electronic Comment Filing System
    (ECFS) or by filing paper copies. See Electronic Filing of Documents
    in Rulemaking Proceedings, 63 Fed. Reg. 24121 (1998).

17. Comments filed using ECFS can be sent as an electronic file via the
    Internet to <http://www.fcc.gov/e-file/ecfs.html>. Generally, only
    one copy of an electronic submission must be filed. If multiple
    docket or rulemaking numbers appear in the caption of this
    proceeding, however, commenters must transmit one electronic copy of
    the comments to each docket or rulemaking number referenced in the
    caption. When completing the transmittal screen, commenters should
    include their full name, U.S. Postal Service mailing address, and
    the applicable docket or rulemaking number. Parties also may submit
    electronic comments by Internet e-mail. To get filing instructions
    for e-mail comments, commenters should send an e-mail to
    <ecfs@fcc.gov>, and should include the following words in the body
    of the message, \"get form.\" A sample form and directions will be
    sent in reply. Parties who choose to file by paper must file an
    original and four copies of each filing. If more than one docket or
    rulemaking number appears in the caption of this proceeding,
    commenters must submit two additional copies for each additional
    docket or rulemaking number.

18. Filings can be sent by hand or messenger delivery, by commercial
    overnight courier, or by first-class or overnight U.S. Postal
    Service mail (although we continue to experience delays in receiving
    U.S. Postal Service mail).

19. The Commission\'s contractor, Vistronix, Inc., will receive
    hand-delivered or messenger-delivered paper filings for the
    Commission\'s Secretary at 236 Massachusetts Avenue, N.E., Suite
    110, Washington, D.C. 20002.

    -The filing hours at this location are 8:00 a.m. to 7:00 p.m.

    -All hand deliveries must be held together with rubber bands or
    fasteners.

    -Any envelopes must be disposed of before entering the building.

    -Commercial overnight mail (other than U.S. Postal Service Express
    Mail and Priority Mail) must be sent to 9300 East Hampton Drive,
    Capitol Heights, MD 20743.

    -U.S. Postal Service first-class mail, Express Mail, and Priority
    Mail should be addressed to 445 12th Street, SW, Washington, D.C.
    20554.

    -All filings must be addressed to the Commission\'s Secretary,
    Office of the Secretary, Federal Communications Commission.

# ORDERING CLauses

20. IT IS ORDERED, that pursuant to the authority contained in Sections
    4, 4(i), 157, 303, 303(g), 303(r), and 307 of the Communications Act
    of 1934, as amended, 47 U.S.C. §§ 154, 154(i), 157, 303, 303(g),
    303(r), 307, this *Notice of Proposed Rule Making* IS ADOPTED.

21. IT IS FUTHER ORDERED that the Commission's Consumer and Governmental
    Affairs Bureau, Reference Information Center, SHALL SEND a copy of
    this *Notice of Proposed Rule Making*, including the Initial
    Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy
    of the Small Business Administration in accordance with Section
    603(a) of the Regulatory Flexibility Act, 5 U.S.C. § 603(a).

22. For further information concerning this *Notice*, contact Sarah
    Mahmood, (202) 418-7009, or Wayne McKee, (202) 418-2355, of the
    Engineering Division, Media Bureau.

> FEDERAL COMMUNICATIONS COMMISSION

Marlene H. Dortch

Secretary

**APPENDIX A**

**Rules**

Part 76 of Title 47 of the Code of Federal Regulations is to be amended
as follows:

**PART 76 -- MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE**

1\. Section 76.5 (v) is revised by deleting the Note and adding a last
sentence to read as follows:

**§ 76.5 Definitions.**

\* \* \* \* \*

\(v\) \* \* \* Terminal devices interconnected to subscriber terminals
of a cable system must comply with the provisions of Part 15 of this
Chapter for TV interface devices.

\* \* \* \* \*

2\. Amend Section 76.605 as follows:

a\. Section 76.605 (a) is revised as shown below;

b\. Section 76.605 (a)(1)(ii) is revised as shown below;

c\. Section 76.605 (a)(6) is revised and paragraphs (a)(6)(i) and
(a)(6)(ii) are deleted;

d\. Section 76.605 (a)(7) is amended by revising the introductory text;
deleting paragraphs (a)(7)(i) through (iv); and renumbering paragraphs
A, B, and C, as i, ii, and iii;

e\. Note 3 is also revised.

**§ 76.605 Technical Standards.**

\(a\) The following requirements apply to the performance of a cable
television system as measured at any subscriber terminal with a matched
impedance at the termination point or at the output of the modulating or
processing equipment (generally the headend) of the cable television
system or otherwise as noted. The requirements are applicable to each
NTSC or similar video downstream cable television channel in the system:

(1)(i) \* \* \*

\(ii\) Cable television systems shall transmit signals to subscriber
premises equipment on frequencies in accordance with the channel
allocation plan set forth in the Electronics Industries Association\'s
\"Cable Television Channel Identification Plan, EIA/CEA-542 Revision A,
April 2002\" (EIA-542). This incorporation by reference was approved by
the Director of the Federal Register in accordance with 5 U.S.C. 522(a)
and 1 CFR Part 51. Cable systems are required to use this channel
allocation plan for signals transmitted in the frequency range 54 MHz to
1002 MHz. Copies of EIA-542 Revision A may be obtained from: Global
Engineering Documents, 15 Inverness Way East, Englewood, CO., 80112,
1-800-854-7179, http*://www.global.ihs.com*. Copies of EIA-542 Revision
A may be inspected during normal business hours at the following
locations: Federal Communications Commission, 445 12^th^ Street, SW,
Washington, DC 20554, or the Office of the Federal Register, 800 North
Capitol Street, NW., Suite 700, Washington, DC 20001.

\* \* \* \* \*

\(6\) The amplitude characteristic shall be within a range of ±2
decibels from 0.75 MHz to 5.0 MHz above the lower boundary frequency of
the cable television channel, referenced to the average of the highest
and lowest amplitudes within these frequency boundaries. The amplitude
characteristic shall be measured at the subscriber terminal.

\(7\) The ratio of RF visual signal level to system noise shall not be
less than 43 decibels. For class I cable television channels, the
requirements of this section are applicable only to:

\* \* \* \* \*

NOTE 3: The requirements of this section shall not apply to devices
subject to the TV interface device rules under Part 15 of this Chapter.

\* \* \* \* \*

3\. Section 76.610 is revised by adding provisions and deleting the last
sentence and Notes 1 and 2 to read as follows:

**§ 76.610 Operation in the frequency bands 108-137 and 225-400 MHz --
scope of application.**

The provisions of §§ 76.605(a)(12), 76.611, 76.612, 76.613, 76.614,
76.616, 76.617, 76.1803 and 76.1804 are applicable to all MVPDs (cable
and non-cable) transmitting carriers or other signal components carried
at an average power level equal to or greater than 10^-4^ watts across a
25 kHz bandwidth in any 160 microsecond period, at any point in the
cable distribution system in the frequency bands 108-137 and 225-400 MHz
for any purpose. Exception: Non-cable MVPDs serving less than 1000
subscribers and less than 1000 units do not have to comply with §
76.1804(g).

4\. Section 76.616 is revised to read as follows:

**§ 76.616 Operation near certain aeronautical and marine emergency
radio frequencies.**

The transmission of carriers or other signal components capable of
delivering peak power levels equal to or greater than 10^-5^ watts at
any point in a cable television system is prohibited within 100 kHz of
the two frequencies 121.500 MHz and 406.025 MHz, and is prohibited
within 50 kHz of the two frequencies 156.800 MHz and 243.000 MHz.

5\. Remove Section 76.618.

**§ 76.618** \[removed\]

6\. Remove Section 76.619.

**§ 76.619** \[removed\]

7\. Remove Section 76.620.

**§ 76.620** \[removed\]

8\. Section 76.1510 is revised to include Section 76.611 as part of the
requirements and should read as follows:

**§ 76.1510 Application of certain Title VI provisions.**

The following sections within part 76 shall also apply to open video
systems; §§  76.71, 76.73, 76.75, 76.77, 76.79, 76.1702, and 76.1802
(Equal Employment Opportunity Requirements); §§  76.503 and 76.504
(ownership restrictions); §  76.981 (negative option billing); and
§§  76.1300, 76.1301 and 76.1302 (regulation of carriage agreements); §
76.611 (signal leakage restrictions); provided, however, that these
sections shall apply to open video systems only to the extent that they
do not conflict with this subpart S. Section 631 of the Communications
Act (subscriber privacy) shall also apply to open video systems.

**PART 78 -- CABLE TELEVISION RELAY SERVICE**

9\. Amend Section 78.19(f)(2)(ii) to read as follows:

**§ 78.19 Interference**

\* \* \* \* \*

\(f\) \* \* \*

\(2\) \* \* \*

\(i\) \* \* \*

\(ii\) Within the rectangular areas defined as follows (vicinity of
Denver, CO):

Rectangle 1:

41°30'00" N. Lat. on the north

103°10'00" W. Long. on the east

38°30'00"; N. Lat. on the south

106°30'00" W. Long. on the west

Rectangle 2:

38°30'00" N. Lat. on the north

105°00'00" W. Long. on the east

37°30'00" N. Lat. on the south

105°50'00" W. Long. on the west

Rectangle 3:

40°08'00" N. Lat. on the north

107°00'00" W. Long. on the east

39°56'00" N. Lat. on the south

107°15'00" W. Long. on the west

\* \* \* \* \*

10\. Amend Section 78.27(b)(1) to read as follows:

**§ 78.27 License conditions.**

\* \* \* \* \*

\(b\) \* \* \*

(1) The licensee of a CARS station shall notify the Commission in
    writing when the station commences operation. Such notification
    shall be submitted on or before the last day of the authorized one
    year construction period; otherwise, the station license shall be
    automatically forfeited.

    \* \* \* \* \*

    **APPENDIX B**

    **INITIAL REGULATORY FLEXIBILITY ANALYSIS**

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1.  As required by the Regulatory Flexibility Act of 1980, as amended
    (RFA),[^22] the Commission has prepared this Initial Regulatory
    Flexibility Analysis (IRFA) of the possible significant economic
    impact on a substantial number of small entities by the policies and
    rules proposed in this *Notice*. Written public comments are
    requested on this IRFA. Comments must be identified as responses to
    the IRFA and must be filed by the deadlines for comments on the
    *Notice* provided in paragraph 17 of the item. The Commission will
    send a copy of this *Notice*, including this IRFA, to the Chief
    Counsel for Advocacy of the Small Business Administration
    (SBA).[^23] In addition, the *Notice* and IRFA (or summaries
    thereof) will be published in the Federal Register.[^24]

## A. Need for, and Objectives of, the Proposed Rules. {#a.-need-for-and-objectives-of-the-proposed-rules. .unnumbered}

2.  The basis of this *Notice* is our concern to assess the need to
    protect the emergency and distress frequency at 406.025 MHz from
    cable system operations in order to promote the safety of life and
    property. We also aim to streamline the rules by eliminating
    outdated regulations and making some minor changes as detailed in
    Appendix A.

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3.  We seek comment on the following objectives which are proposed for
    consideration in this *Notice:*

-   Whether to provide for the protection of emergency and distress
    frequency 406.025 MHz by updating § 76.616 to include that frequency
    in the group of protected frequencies;

-   Whether the industry believes that unused or discontinued CARS
    licenses should be forfeited or cancelled [^25];

-   Whether to include signal leakage restrictions among the other
    requirements within Part 76 listed in § 76.1510 that apply to open
    video systems;

-   Whether to eliminate of §§ 76.618 and 76.619 because the date after
    which operators on these were grandfathered to continue operations
    ended on July 1, 1990; and

-   Whether to effect the miscellaneous amendments detailed in Appendix
    A which exclusively involve typographical errors or operations that
    have become obsolete.

## B. Legal Basis {#b.-legal-basis .unnumbered}

4.  The proposed action is authorized under Sections 4, 4(i), 157, 303,
    303(g), 303(r), and 307 of the Communications Act of 1934, as
    amended, 47 U.S.C. §§ 154, 154(i), 157, 303, 303(g), 303(r), 307.

## C. Description and Estimate of the Number of Small Entities to Which the Rules Will Apply. {#c.-description-and-estimate-of-the-number-of-small-entities-to-which-the-rules-will-apply. .unnumbered}

5.  The RFA directs the Commission to provide a description of and,
    where feasible, an estimate of the number of small entities that
    will be affected by the rules adopted herein.[^26] The RFA defines
    the term "small entity" as having the same meaning as the terms
    "small business," "small organization," and "small governmental
    jurisdiction" under Section 3 of the Small Business Act.[^27] Under
    the Small Business Act, a small business concern is one which: (1)
    is independently owned and operated; (2) is not dominant in its
    field of operation; and (3) satisfies any additional criteria
    established by the Small Business Administration ("SBA").[^28]

6.  A small organization is generally "any "not-for-profit enterprise
    which is independently owned and operated and is not dominant in its
    field."[^29] Nationwide, as of 1992, there were approximately
    275,801 small organizations.[^30] "Small government
    jurisdiction"[^31] generally means "governments of cities, counties,
    towns, townships, villages, school districts, or special districts,
    with a population of less than 50,000."[^32] As of 1992, there were
    approximately 87,525 governmental entities in the United
    States.[^33] This number includes 38,978 counties, cities, and
    towns: of these, 37,566, or 96%, have populations of fewer than
    50,000.[^34] The Census Bureau estimates that this ratio is
    approximately accurate for all governmental entities. Thus, of the
    85,006 governmental entities, we estimate that 81,600 (96%) are
    small entities. Below, we further describe and estimate the number
    of small entity licensees and regulates, including cities, counties,
    farms, villages, and other small organizations that may be affected
    by these rules.

7.  The rules we adopt as a result of this *Notice* protect the
    emergency and distress frequency 406.025 MHz from interference from
    cable system operations. The nearest cable frequency is a color
    carrier[^35] approximately 800 kHz above the emergency and distress
    frequency at 406.83 MHz.

8.  *Small MVPDs*. SBA has developed a definition of small entities for
    cable and other program distribution services, which includes such
    companies generating \$12.5 million or less in annual receipts.[^36]
    This definition includes cable system operators, closed circuit
    television services, direct broadcast satellite services, multipoint
    distribution systems, satellite master antenna systems, and
    subscription television services[^37]. According to the Census
    Bureau, there were 1,423 such cable and other program distribution
    services generating less than \$12.5 million in revenue.[^38] We
    address below services individually to provide a more precise
    estimate of small entities.

9.  The Commission has developed, with SBA's approval, its own
    definition of a small cable system operator for the purposes of rate
    regulation. Under the Commission's rules, a "small cable company" is
    one serving fewer than 400,000 subscribers nationwide.[^39] Based on
    our most recent information, we estimate that there were 1439 cable
    operators that qualified as small cable companies at the end of
    1995.[^40] Since then, some of those companies may have grown to
    serve over 400,000 subscribers, and others may have been involved in
    transactions that caused them to be combined with other cable
    operators. The Commission's rules define a "small system," for the
    purposes of rate regulation, as a cable system with 15,000 or fewer
    subscribers.[^41] The Commission does not request nor does the
    Commission collect information concerning cable systems serving
    15,000 or fewer subscribers and thus is unable to estimate, at this
    time, the number of small cable systems nationwide.

10. The Communications Act, as amended, also contains a size standard
    for a small cable system operator, which is \"a cable operator that,
    directly or through an affiliate, serves in the aggregate fewer than
    1% 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.\"[^42] The Commission has determined
    that there are 68,500,000 subscribers in the United States.[^43]
    Therefore, an operator serving fewer than 685,000 subscribers shall
    be deemed a small operator if its annual revenues, when combined
    with the total annual revenues of all of its affiliates, do not
    exceed \$250 million in the aggregate.[^44] Based on available data,
    we find that the number of cable operators serving 685,000
    subscribers or less totals approximately 1,450.[^45] Although it
    seems certain that some of these cable system operators are
    affiliated with entities whose gross annual revenues exceed
    \$250,000,000, we are unable at this time to estimate with greater
    precision the number of cable system operators that would qualify as
    small cable operators under the definition in the Communications
    Act.

11. *Satellite Master Antenna Television Systems ("SMATV").* The SBA
    definition of small entities for cable and other program
    distribution services includes SMATV services and, thus, small
    entities are defined as all such companies generating \$12.5 million
    or less in annual receipts.[^46] Industry sources estimate that
    approximately 5,200 SMATV operators were providing service as of
    December 1995.[^47] Other estimates indicate that SMATV operators
    serve approximately 1.5 million residential subscribers as of July
    2001.[^48] The best available estimates indicate that the largest
    SMATV operators serve between 15,000 and 55,000 subscribers each.
    Most SMATV operators serve approximately 3,000-4,000 customers.
    Because these operators are not rate regulated, they are not
    required to file financial data with the Commission. Furthermore, we
    are not aware of any privately published financial information
    regarding these operators. Based on the estimated number of
    operators and the estimated number of units served by the largest
    ten SMATVs, we believe that a substantial number of SMATV operators
    qualify as small entities

12. *Open Video System* (*"OVS"*). Because OVS operators provide
    subscription services,[^49] OVS falls within the SBA-recognized
    definition of cable and other program distribution services.[^50]
    This definition provides that a small entity is one with \$ 12.5
    million or less in annual receipts.[^51] The Commission has
    certified 25 OVS operators with some now providing service.
    Affiliates of Residential Communications Network, Inc. (\"RCN\")
    received approval to operate OVS systems in New York City, Boston,
    Washington, D.C. and other areas. RCN has sufficient revenues to
    assure us that they do not qualify as small business entities.
    Little financial information is available for the other entities
    authorized to provide OVS that are not yet operational. Given that
    other entities have been authorized to provide OVS service but have
    not yet begun to generate revenues, we conclude that at least some
    of the OVS operators qualify as small entities.

13. *Multichannel, Multipoint Distribution Service* ("*MMDS*"). MMDS
    systems, often referred to as "wireless cable," transmit video
    programming to subscribers using the microwave frequencies of the
    MDS and ITFS.[^52] In connection with the 1996 MDS auction, the
    Commission defined small businesses as entities that had annual
    average gross revenues of less than \$40 million in the previous
    three calendar years.[^53] This definition of a small entity in the
    context of MDS auctions has been approved by the SBA.[^54] The MDS
    auctions resulted in 67 successful bidders obtaining licensing
    opportunities for 493 Basic Trading Areas ("BTAs"). Of the 67
    auction winners, 61 met the definition of a small business. MDS also
    includes licensees of stations authorized prior to the auction. As
    noted, the SBA has developed a definition of small entities for
    program distribution services, which includes all such companies
    generating \$12.5 million or less in annual receipts.[^55] This
    definition includes multipoint distribution services, and thus
    applies to MDS licensees and wireless cable operators that did not
    participate in the MDS auction. Information available to us
    indicates that there are approximately 850 of these licensees and
    operators that do not generate revenue in excess of \$12.5 million
    annually. Therefore, for purposes of the IRFA, we find there are
    approximately 850 small MDS providers as defined by the SBA and the
    Commission's auction rules.

## D. Description of Projected Reporting, Recordkeeping, and Other Compliance Requirements. {#d.-description-of-projected-reporting-recordkeeping-and-other-compliance-requirements. .unnumbered}

14. This *Notice* proposes no changes in reporting, recordkeeping or
    compliance.

## E. Steps Taken to Minimize Significant Economic Impact on Small Entities, and Significant Alternatives Considered. {#e.-steps-taken-to-minimize-significant-economic-impact-on-small-entities-and-significant-alternatives-considered. .unnumbered}

15. The RFA requires an agency to describe any significant alternatives
    that it has considered in reaching its proposed approach, which may
    include the following four alternatives (among others): "(1) the
    establishment of differing compliance or reporting requirements or
    timetables that take into account the resources available to small
    entities; (2) the clarification, consolidation, or simplification of
    compliance or reporting requirements under the rule for such small
    entities; (3) the use of performance, rather than design standards;
    and (4) an exemption from coverage of the rule, or any part thereof,
    for small entities."[^56]

16. We believe that the rules proposed in this *Notice* will have a
    negligible economic effect on all entities regardless of size. The
    majority of the rule changes proposed in this *Notice* include the
    deletion of outdated rules as well as some corrections for
    typographical errors and consistency.

17. The revision to § 76.616 concerning operation near certain
    aeronautical and marine emergency radio frequencies (i.e. 406.025
    MHz) should have a minimal or negligible effect on small or large
    entities since all such operations are already well outside of the
    boundaries defined by the proposed rule. It is in the interest of
    public safety to protect the digital search and rescue frequency
    406.025 MHz; the alternative of not protecting the frequency 406.025
    MHz is unacceptable.

18. The revision of § 76.1510 to include signal leakage restrictions for
    open video systems is also in the interest of public safety, thus
    the alternative of non-restriction is unacceptable.

19. In this *Notice* we ask for comment on whether discontinued or
    unused CARS licenses should be forfeited or cancelled. The
    alternative would be to leave the CARS licenses as they are, which
    would result in unused or wasted spectrum as it would not be
    available for other licensees.[^57]

## F. Federal Rules that May Duplicate, Overlap, or Conflict with the Proposed Rule. {#f.-federal-rules-that-may-duplicate-overlap-or-conflict-with-the-proposed-rule. .unnumbered}

20. None.

## G. Ordering Clause {#g.-ordering-clause .unnumbered}

21. IT IS FURTHER ORDERED that the Commission's Consumer & Governmental
    Affairs Bureau, Reference Information Center, shall send a copy of
    this *Notice*, including the Initial Regulatory Flexibility
    Analysis, to the Chief Counsel for Advocacy of the Small Business
    Administration.

[^1]: "COSPAS" is an acronym for a Russian phrase meaning space system
    for search and distress vessels. "SARSAT" stands for Search And
    Rescue Satellite Aided Tracking. *See Amendment of the Aviation
    Rules (Part 87) to Authorize the Use of the Frequency 406.025 MHz
    for Emergency Locator Transmitters (ELTs)*, 8 FCC Rcd 3185, n.3
    (1993).

[^2]: Emergency position indicating radiobeacon stations are small
    battery powered transmitters used to send a distress signal that is
    used as an alerting signal and to assist search and rescue
    personnel. In the United States such beacons are named emergency
    locator transmitters (ELTs) when carried on an aircraft and
    emergency position indicating radiobeacons (EPIRBs) when carried on
    ships. ELTs and EPIRBs operate on the same internationally allocated
    frequencies and transmit identical distress signals. *See Amendment
    of the Aviation Rules*, 8 FCC Rcd 3185.

[^3]: 47 C.F.R. § 76.616.

[^4]: *Amendment of Part 76 of the Commission's Rules to Add Frequency
    Requirements and Restrictions and to Require Monitoring for Signal
    Leakage from Cable Television Systems*, 65 F.C.C.2d 813, 827-28
    (1977). The special offset requirements for cable television
    operation near the emergency communications frequencies at 121.500
    MHz, 156.800 MHz and 243.000 MHz were originally codified under 47
    C.F.R. § 76.611 but were later reinserted under the current
    reference section number at 47 C.F.R. § 76.616 (*see* *Amendment of
    Part 76 of the Commission's Rules to Add Frequency Requirements and
    Restrictions and to Require Monitoring for Signal Leakage from Cable
    Television Systems,* 101 F.C.C.2d 117 (1985)).

[^5]: *Amendment of the Maritime Services Rules to Allow Ships to Use
    406.025 MHz Emergency Position Indicating Radiobeacons for Distress
    Alerting and Search and Rescue Functions*, 3 FCC Rcd 5406 (1988).

[^6]: *Amendment of the Aviation Rules*, 8 FCC Rcd 3185.

[^7]: *Amendment of Part 95 of the Commission's Rules to Authorize the
    Use of 406.025 MHz for Personal Locator Beacons (PLB)*, FCC 02-271;
    2002 WL 31245985 (F.C.C.) (2002).

[^8]: *See* *Amendment of Parts 13 and 80 of the Commission's Rules
    Concerning Maritime Communications*, 15 FCC Rcd 5942 (2000),
    *citing,* Letter from Joseph D. Hersey, Jr., Chief, Spectrum
    Management Division, U.S. Coast Guard, to Thomas Sugrue, Chief,
    Wireless Telecommunications Bureau, Federal Communications
    Commission, Dec. 22, 1999 (U.S. Coast Guard Letter).

[^9]: *Id.* at 5957, *citing*, Satellite Processing of 121.5 MHz
    Emergency Beacons to be Phased Out, National Oceanic and Atmospheric
    Administration (NOAA) 99-075, Nov. 10, 1999.

[^10]: *Amendment of Parts 13 and 80 of the Commission's Rules to
    Implement the Global Maritime Distress and Safety System (GMDSS) to
    Improve the Safety of Life at Sea,* 7 FCC Rcd 951 (1992). The GMDSS
    was fully implemented in the United States as of February 1, 1999.

[^11]: 46 C.F.R. § 25.26-5.

[^12]: U.S. Coast Guard Letter, see note Error: Reference source not
    found.

[^13]: "Blind spots" are a result of a satellite's inability to see or
    provide radio coverage to every location on the earth continuously.

[^14]: The nearest video carriers are at 403.25 MHz and 409.25 MHz,
    while the nearest aural carrier is at 407.75 MHz.

[^15]: 47 C.F.R. §§ 76.618 and 76.619.

[^16]: *Id.* § 76.610.

[^17]: *Id.* § 76.610 NOTE 2.

[^18]: *Id.* § 101.65. Section 101.65(a) states that a license is
    automatically forfeited if the licensee voluntarily removes or
    alters the facility so that the station is not in operation for a
    period of 30 days or more. Section 101.65(b) indicates that a
    licensee is responsible for canceling their license if the station
    discontinues operation on a permanent basis. Stations that have not
    been operational for one year or more are considered permanently
    discontinued.

[^19]: 47 U.S.C. § 151.

[^20]: 5 U.S.C. § 603 (1996).

[^21]: *Id*.

[^22]: *See* 5 U.S.C. § 603. The RFA, *see* 5 U.S.C. § 601-612, has been
    amended by the Small Business Regulatory Enforcement Fairness Act of
    1996, (SBREFA) Pub. L. No. 104-121, Title II, 110 Stat. 857 (1996).

[^23]: *See* 5 U.S.C. § 603(a).

[^24]: *See* 5 U.S.C. § 603(a).

[^25]: CARS licenses are issued to those who meet the eligibility
    requirements set forth in 47 C.F.R § 78.13

[^26]: 5 U.S.C. § 603(b)(3).

[^27]: *Id*. § 601(3)(incorporating by reference the definition of
    "small business concern" in the Small Business Act, 15 U.S.C. §
    632.) Pursuant to 5 U.S.C. 601(3), the statutory definition of a
    small business applies, "unless an agency, after consultation with
    the Office of Advocacy of the SBA and after opportunity for public
    comment, establishes one or more definitions of such term which are
    appropriate to the activities of the agency and publishes such
    definition(s) in the Federal Register."

[^28]: 15 U.S.C. § 632.

[^29]: 5 U.S.C. § 601(4).

[^30]: 1992 Economic Census, U.S. Bureau of the Census, Table 6 (special
    tabulation of data under contract to Office of Advocacy of the U.S.
    Small Business Administration).

[^31]: 47 C.F.R. § 1.1162.

[^32]: 5 U.S.C. § 601(5).

[^33]: U.S. Census Bureau, "2002 Census of Governments -- Government
    Organization"

[^34]: *Id*.

[^35]: A color carrier is the subcarrier that contains the color
    information for the video signal.

[^36]: 13 C.F.R. § 121.201 (NAICS code 517510, formerly NAICS code
    513220).

[^37]: Cable subscription services NAICS code 517120, formerly NAICS
    code 513210.

[^38]: Economics and Statistics Administration, Bureau of Census, U.S.
    Department of Commerce, 1992 CENSUS OF TRANSPORTATION,
    COMMUNICATIONS AND UTILITIES, ESTABLISHMENT AND FIRM SIZE, Series
    UC92-S-1, Firm Size 1-123 (1995) ("1992 Census"). *See Memorandum
    Opinion and Order and Notice of Proposed Rule Making*,
    Implementation of Sections of the Cable Telecommunications Consumer
    Protection and Competition Act of 1992, Rate Regulation and Cable
    Pricing Flexibility, MM Docket No. 92-266 and CS Docket No. 96-157,
    11 FCC Rcd 9517, 9531 (1996).

[^39]: 47 C.F.R. § 76.901(e). The Commission developed this definition
    based on its determination that a small cable system operator is one
    with annual revenues of \$100 million or less. *See Sixth* *Report
    and Order and Eleventh Order on Reconsideration*, MM Docket No.
    92-266 and 93-215, 10 FCC Rcd 7393 (1995).

[^40]: Paul Kagan Associates, Inc., *Cable TV Investor*, Feb. 29, 1996
    (based on figures for Dec. 30, 1995).

[^41]: 47 C.F.R. § 76.901(c).

[^42]: 47 U.S.C. § 543(m)(2).

[^43]: *Annual Assessment of the Status of Competition in Markets for
    the Delivery of Video Programming,* FCC 17 FCC Rcd. 1255 (2001)
    ("*Eighth Annual Report*").

[^44]: 47 C.F.R. § 76.1403(b).

[^45]: Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 1996
    (based on figures for Dec. 30, 1995).

[^46]: 13 C.F.R. § 121.201 (NAICS code 517510, formerly NAICS code
    513220).

[^47]: *See Third Annual Report*, 12 FCC Rcd at 4403-4.

[^48]: *See Annual Assessment of the Status of Competition in Markets
    for the Delivery of Video Programming*, 17 FCC Rcd 1244, 1281 (2001)
    ("*Eighth Annual Report*").

[^49]: *See* 47 U.S.C. § 573.

[^50]: 13 C.F.R. § 121.201 (NAICS code 517510, formerly NAICS code
    513220).

[^51]: *Id.*

[^52]: *Amendment of Parts 21 and 74 of the Commission's Rules with
    Regard to Filing Procedures in the Multipoint Distribution Service
    and in the Instructional Television Fixed Service and Implementation
    of Section 309(j) of the Communications Act -- Competitive Bidding*,
    10 FCC Rcd at 9589, 9593 (1995) ("*ITFS Order*").

[^53]: 47 C.F.R. § 21.961(b)(1).

[^54]: *See ITFS* *Order*, 10 FCC Rcd at 9589.

[^55]: 13 C.F.R. § 121.201 (NAICS code 517510, formerly NAICS code
    513220).

[^56]: *See* 5 U.S.C. § 603(c).

[^57]: The proposed miscellaneous amendments and the grandfathering
    termination deadline to not require discussion of alternatives
    because (1) the amendments are essentially typographical and (2) the
    grandfathering deadline is self-executing.