**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

In the Matter of )

)

Revision of ARMIS Annual Summary Report )

(FCC Report 43-01), ARMIS USOA Report )

(FCC Report 43-02), ARMIS Joint Cost Report )

(FCC Report 43-03), ARMIS Access Report )

(FCC Report 43-04), ARMIS Service Quality )

Report (FCC Report 43-05), ARMIS Customer ) CC Docket No. 86-182

Satisfaction Report (FCC Report 43-06), )

ARMIS Infrastructure Report (FCC Report 43-07), )

ARMIS Operating Data Report (FCC Report 43-08), )

ARMIS Forecast of Investment Usage Report )

(FCC Report 495A), and ARMIS Actual Usage of )

Investment Report (FCC Report 495B) for Certain )

Class A and Tier 1 Telephone Companies )

**ORDER**

Adopted: December 8, 2004 Released: December 8, 2004

By the Chief, Industry Analysis and Technology Division:

**I. INTRODUCTION**

1.  In this Order, we revise two of the Automated Reporting Management
    Information System (ARMIS) reports[^1] to implement an OMB
    Notice[^2] and a recent Commission order.[^3] In addition, we
    clarify definitions and descriptions in several ARMIS reports to
    ensure consistency among reports and to improve the understanding of
    existing requirements. Finally, we adopt other minor, technical
    changes to the ARMIS reports pursuant to the authority delegated to
    the Wireline Competition Bureau in the *ARMIS Order* [^4] and
    section 0.291 of the Commission's rules.[^5]

2.  Because these changes are minor and, in most cases made pursuant to
    the recommendations of the carriers filing the reports, we find good
    cause to conclude that notice and comment procedures of the
    Administrative Procedure Act are unnecessary.[^6]

**II. DISCUSSION**

A.  **General**

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3.  This Order implements changes to two ARMIS reports as necessitated
    by the redefinition of Standard Metropolitan Statistical Areas.[^7]
    In addition, this Order provides improved definitions, descriptions,
    and instructions that will lead to greater clarity and consistency
    in reporting by incumbent local exchange carriers. In the following
    sections, we discuss the more important modifications. The Appendix
    contains a complete listing of the revisions that we make to ARMIS
    reports. Detailed instructions for the completion of the reports,
    which incorporate the changes made in this Order, are available for
    public inspection in the Commission's Reference Information Center
    at Portals II, 445 Twelfth Street, S.W., Room CY-A257, Washington,
    D.C. 20554 and from Best Copy and Printing, Inc., Portals II, 445
    Twelfth Street, S.W., CY-B402, Washington, D.C. 20554. Copies of the
    detailed instructions may also be obtained over the Internet, from
    the Commission's web site, at the web address:
    \<http://www.fcc.gov/wcb/armis/instructions/\>.

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B.  **FCC Report 43-01 - The Annual Summary Report**

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4.  FCC Report 43-01, the Annual Summary Report, summarizes the
    carriers' accounting and cost allocation data prescribed in Parts
    32, 36, 64, 65, and 69 of the Commission's rules.[^8] In this Order,
    we modify the instructions for Row 1970, in Table I, Cost and
    Revenue, to reflect time periods and multiplicative factors to be
    applied to 2004 data. Part I of the Appendix to this Order contains
    revisions to this report.

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C.  **FCC Report 43-02 - The USOA Report**

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5.  FCC Report 43-02, the Uniform System of Accounts (USOA) Report,
    provides the annual operating results of the carriers' activities
    for accounts as specified in the USOA.[^9] This Order modifies the
    General Instructions for Table C-5, Important Changes During the
    Year, to require that carriers file Annual SEC 10K Reports with the
    Commission electronically, rather than by paper copy. [^10] Part II
    of the Appendix to this Order contains revisions to this report.

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D.  **FCC Report 43-04 - The Access Report**

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6.  FCC Report 43-04, the Access Report, details carriers' revenues,
    expenses, taxes, plant in service, other investment and depreciation
    reserves by study area, pursuant to section 43.21(f) of the
    Commission's rules.[^11] In this Order, we clarify instructions for
    Rows 1216 and 3090. Part IV of the Appendix to this Order contains
    the revisions to this report.

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E.  **FCC Report 43-05 - The Service Quality Report**

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7.  FCC Report 43-05, the Service Quality Report, measures carrier
    trends in service quality under price-cap regulation by study area,
    pursuant to section 43.21(g) of the Commission's rules.[^12] In this
    Order we make several minor clarifying changes to this report, in
    Table II, Installation and Repair Intervals (Local Service), Row
    0140, and Table III, Common Trunk Blockage, Row 0180. Further, we
    modify the instructions for Table II, Column (ad) and Table IV,
    Total Switch Downtime, Row 0200, to incorporate the new definitions
    for Metropolitan Statistical Areas.[^13] Part V of the Appendix to
    this Order contains the revisions to this report.

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F.  **FCC Report 43-07 - The Infrastructure Report**

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8.  FCC Report 43-07, the Infrastructure Report, details carrier trends
    in telephone industry infrastructure development under price-cap
    regulation by study area, pursuant to section 43.21(i) of the
    Commission's rules.[^14] In this Order we make several minor
    clarifying changes to this report, and modify the instructions for
    Table I, Switching Equipment, Column (b), to incorporate the new
    definitions for Metropolitan Statistical Areas.[^15] Also, to insure
    consistency in calculations between this report and FCC Report
    43-08, the Operating Data Report, we direct that in Table II, Rows
    0320, 0321, 0322, and 0323, the quantities of facilities are to be
    reported in whole numbers. Part VII of the Appendix to this Order
    contains the revisions to this report.

**III. PAPERWORK REDUCTION ACT**

9.  The modifications to the information collections contained herein
    are contingent upon approval of the Office of Management and Budget.

**IV. ORDERING CLAUSE**

10. Accordingly, IT IS ORDERED, pursuant to the authority contained in
    sections 1, 4(i), 4(j), 201-205, 215, 218, 219, and 220 of the
    Communications Act of 1934, as amended, 47 U.S.C. §§ 151, 154(i),
    154(j), 201-205, 215, 218, 219, and 220, and sections 0.91 and 0.291
    of the Commission's rules, 47 C.F.R. §§ 0.91 and 0.291, that FCC
    Report 43-01, the Annual Summary Report, FCC Report 43-02, the USOA
    Report, FCC Report 43-03, the Joint Cost Report, FCC Report 43-04,
    the Access Report, FCC Report 43-05, the Service Quality Report, FCC
    Report 43-06, the Customer Satisfaction Report, FCC Report 43-07,
    the Infrastructure Report, FCC Report 43-08, the Operating Data
    Report, FCC Report 495A, the Forecast of Investment Usage Report,
    and FCC Report 495B, the Actual Usage of Investment Report ARE
    REVISED, as set forth above and in the Appendix to this Order,
    effective for filings due April 1, 2005.

FEDERAL COMMUNICATIONS COMMISSION

Rodger A. Woock

Chief, Industry Analysis and Technology Division

**PART I --- Summary of changes to FCC Report 43-01 (The Annual Summary
Report)**

### A. Table I -- Cost and Revenue

## Report Definition -- Row Instructions

1.  Row 1970 - The definition of this row is revised to read: "[Common
    Line Support-Long Term]{.underline} - Enter the amount of long-term
    support (LTS), which is a portion of the carrier's Universal Service
    contribution payment submitted to NECA pursuant to Section
    69.612(a). The amount reported in this row is calculated as follows:
    Total Interstate and International End User Telecommunications
    Revenue (less International Exception Revenue) from January 1, 2003
    to December 31, 2003 times 0.003548 (the LTS portion of the
    annualized Universal Service contribution factor). The revenues to
    be used in this calculation are as reported to NECA on April 1, 2004
    on FCC Form 499A, line 420, columns (d) + (e). This item is reported
    as a negative amount. ***Note:*** Carriers that are in the Common
    Line Pool will report zero."

### B. Table II -- Demand Analysis

*Report Definition -- General Instructions*

1.  Add the following: "Any row/column data entry which contains UNE
    data must be accompanied by an explanatory footnote identifying the
    types of UNEs (e.g., "UNE-P") that are included."

**PART II --- Summary of changes to FCC Report 43-02 (The USOA Report)**

**A. Table C-5 -- Important Changes During the Year**

*Report Definition -- General Instructions*

1.  The following "Notice" is changed: "NOTICE: All carriers that file
    this table are required to electronically file a copy of the Annual
    SEC Form 10-K Report (at the holding company level) with the FCC
    (see FCC ARMIS Reports - Procedures, section G4). This requirement
    is in accordance with the Report and Order in *Comprehensive Review
    of the Accounting Requirements and ARMIS Reporting Requirements for
    Incumbent Local Exchange Carriers: Phase I,* CC Docket No. 99-253,
    FCC 00-78 (adopted March 2, 2000).

**B. Table B-1 -- Balance Sheet Accounts**

### 

## Report Definition -- Form

1.  The following row titles are changed:

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a.  Row 1350, Other current assets,

b.  Row 2003, Telecommunications plant under construction (TPUC),

c.  Row 2110, Land and Support Assets,

d.  Row 2341, Large private branch exchanges,

e.  Row 2410, Cable and Wire Facilities,

f.  Row 2680, Amortizable Tangible Assets,

g.  Row 2681, Capital leases, and

h.  Row 4361, Deferred tax regulatory adjustment -- net.

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2.  The following section titles are changed:

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a.  "Plant" is changed to "Property, Plant and Equipment",

b.  "TPIS - General Support" is changed to "TPIS - General Support
    Assets",

c.  "TPIS - Central Office " is changed to "TPIS - Central Office
    Assets",

d.  "TPIS - Information Origination/Termination" is changed to "TPIS -
    Information Origination/Termination Assets", and

e.  "TPIS - Cable & Wire" is changed to "TPIS - Cable and Wire Assets".

## 

## Report Definition -- Row Instructions

3.  The following row titles in the row instructions are changed:

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a.  Row 2110, Land and Support Assets, and

b.  Row 2680, Amortizable Tangible Assets.

**C. Table B-5 --Analysis of Entries in Accumulated Depreciation**

## Report Definition -- Form

1.  The following row titles are changed as follows:

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a.  Row 0350 - Large private branch exchanges, and

b.  Row 0450 - Intrabuilding network cable.

## Report Definition -- Row Instructions

2.  The following row title in the row instruction is changed as
    follows:

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a.  Row 0350 - Large private branch exchanges.

**D. Table I-1 -- Income Statement Accounts**

### 

## Report Definition -- Form

1.  The following row titles are changed:

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a.  Row 5280, Nonregulated operating revenue,

b.  Row 5300, Uncollectible revenue,

c.  Row 6122, Furniture and artworks expense,

d.  Row 6510, Other Property, Plant and Equipment Expenses,

e.  Row 7250, Provision for deferred operating income taxes-net, and

f.  Row 7910, Income effects of jurisdictional ratemaking
    differences-net.

## Report Definition -- Row Instructions

2.  The following row titles in the row instructions, add "Expenses" to
    the title: Rows 6110, 6120, 6210, 6230, 6310, 6410, 6510, 6530,
    6560, 690, 6610, 6620, 700, and 710.

3.  The following row titles in the row instructions, add "expense" to
    the title: Rows 615, 625, 635, 6212, 6232, 665, 675, and 685.

**PART III --- Summary of changes to FCC Report 43-03 (The Joint Cost
Report)**

### Table I -- Regulated/Nonregulated Data

## Report Definition -- Summary

1.  The following "Notice" is changed: "NOTICE: The ARMIS Joint Cost
    Report collects the results of the regulated/nonregulated cost
    allocation procedures as specified in Part 64, Subpart I of the
    Commission\'s Rules. The ARMIS Joint Cost Report specifies
    information requirements in a consistent format and is essential for
    the FCC to monitor revenue requirements, rate of return,
    jurisdictional separations and access charges. As required by Part
    64.904, local exchange carriers that file this report must provide a
    copy of the independent auditor's opinion with this report, every
    two years. The carrier has the option to do an attest engagement or
    biennial financial audit, as stated in the above rule. The
    independent auditor's opinion must indicate the two calendar years
    that were audited. For further information, refer to the FCC's
    Responsible Accounting Officer Letter 31 (DA 00-2385, released
    December 21, 2000) and FCC ARMIS Reports - Procedures, section G5.
    The independent auditor's opinion will be provided by the BellSouth,
    Qwest, SBC, and Verizon companies for the odd years (2001, 2003,
    2005, etc.). Your response is mandatory.

### 

## Report Definition -- Form

2.  The following row titles are changed:

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a.  Row 5040, Private line revenue,

b.  Row 6510, Other property, plant and equipment expenses, and

c.  Row 2362, Other terminal equipment.

**PART IV -- Summary of changes to FCC Report 43-04 (The Access
Report)**

**A. Table I -- Separations and Access Table**

## Report Definition -- Row Instructions

1.  Row 1216 - The definition of this row is revised to read: "Dial
    Equipment Minutes, as defined in Section 36.125(a)(3), used to
    calculate the interstate allocation factor pursuant to Section
    36.125(i)."

2.  Row 3090 - The definition of this row is revised to read:
    "Accumulated amortization of capital leases associated with General
    Support Facilities and which accumulated amortization is allocated
    pursuant to Sections 36.505(a), 69.2(z), and 69.301(a).

**PART V -- Summary of changes to FCC Report 43-05 (The Service Quality
Report)**

## 

## General Instructions

1.  Add the following paragraph at the end of the section: "In Tables
    II, IV.A, and V, any row/column data entry which contains UNE data
    must be accompanied by an explanatory footnote identifying the types
    of UNEs (e.g., "UNE-P") that are included."

**A. Table II -- Installation and Repair Intervals (Local Service)**

## 

## Report Definition -- Row/Column Instructions

1.  Row 0140 - [Total Access Lines]{.underline} - The definition of this
    row is revised to read: "Total end-of-year, in-service access lines
    in the study area. Access lines include all classifications of local
    exchange telephone service including, but not limited to, individual
    lines, party line access, PBX access, Centrex access, Coin access,
    Foreign Exchange access, and WATS access, but do NOT include
    official/company circuits in the access line counts. Access lines,
    as defined herein, is a more inclusive term than billable access
    lines as defined in the ARMIS 43‑01 Report. See row instructions for
    Rows 2090 through 2140 of the ARMIS 43‑01 Report for the definition
    of billable access lines. Enter in whole numbers."

2.  Column (ad) - [MSA]{.underline} - The definition of this column is
    revised to read: "MSAs, or Metropolitan Statistical Areas, are
    designated by the Office of Management and Budget in a list
    following each decennial census. An MSA is a Core - Based
    Statistical Area associated with at least one urbanized area that
    has a population of at least 50,000. The Metropolitan Statistical
    Area comprises the central county or counties containing the core,
    plus adjacent outlying counties having a high degree of social and
    economic integration with the central county as measured through
    commuting. See 65 Fed. Reg. 82228 (2000). This amount represents all
    residential customers located within MSAs in the study area served
    by the reporting carrier."

**B. Table III -- Common Trunk Blockage**

## 

## Report Definition -- Row Instructions

1.  Row 0180 - [Total Trunk Groups]{.underline} - The definition of this
    row is revised to read: "Enter the total number of common trunk
    groups in service at the end of the year for which the reporting
    carrier is responsible. Common trunk groups are trunk groups between
    the ILEC end office and the ILEC access tandem that carry Feature
    Group B, C and D access traffic. Do not count connections between
    host and remote switches. IntraLATA traffic may also be carried on
    these groups. Enter in whole numbers."

**C. Table IV -- Total Switch Downtime**

## 

## Report Definition -- Row Instructions

1.  Row 0200 - [MSA]{.underline} - The definition of this row is revised
    to read: "This row represents all MSAs served within the study area.
    MSAs, or Metropolitan Statistical Areas, are designated by the
    Office of Management and Budget in a list released following each
    decennial census. An MSA is a Core - Based Statistical Area
    associated with at least one urbanized area that has a population of
    at least 50,000. The Metropolitan Statistical Area comprises the
    central county or counties containing the core, plus adjacent
    outlying counties having a high degree of social and economic
    integration with the central county as measured through commuting.
    See 65 Fed. Reg. 82228 (2000). Use the rounding conventions
    specified in the column instructions when entering these data."

**PART VI -- Summary of changes to FCC Report 43-06 (The Customer
Satisfaction Report)**

### A. Table I -- Summary Customer Satisfaction Survey

### 

## Report Definition -- Form and Row Instructions

1.  The following row is removed:

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a.  Row 0020 - [Reserved]{.underline}

**PART VII -- Summary of changes to FCC Report 43-07 (The Infrastructure
Report)**

## Report Definition -- Summary

1.  In the paragraph immediately following the table of contents, make
    the following changes: "All kilometers and access lines must be
    entered in whole numbers. All switches, tandems, hosts, remotes,
    interfaces, circuit lines, carrier links, terminations, channels,
    copper pairs, and fiber strands must be entered in whole numbers."

## 

## Report Definition -- General Instructions

2.  Add the following sentence to the existing sentence, so that the
    combined material reads thus: "For the purposes of this report, the
    terms access lines, lines, and lines in service are used
    interchangeably. Any row/column data entry which contains UNE data
    must be accompanied by an explanatory footnote identifying the types
    of UNEs (e.g., "UNE-P") that are included."

**A. Table I -- Switching Equipment**

## 

## Report Definition -- Column Instructions

1.  Column (b) - [Within MSA]{.underline} - The definition of this
    column is revised to read: "This column represents all MSAs served
    within the study area. MSAs, or Metropolitan Statistical Areas, are
    designated by the Office of Management and Budget in a list
    following each decennial census. An MSA is a Core - Based
    Statistical Area associated with at least one urbanized area that
    has a population of at least 50,000. The Metropolitan Statistical
    Area comprises the central county or counties containing the core,
    plus adjacent outlying counties having a high degree of social and
    economic integration with the central county as measured through
    commuting. See 65 Fed. Reg. 82228 (2000). Enter the facilities
    within any MSA in the Study Area in this column."

**B. Table II -- Transmission Facilities**

## Report Definition -- Row Instructions

1.  Row 0320 - [Total Sheath Kilometers]{.underline} - The definition of
    this row is revised to read: "The total length in kilometers of all
    loop and interoffice cables (Plant in Service -- Account 2410)
    without regard to the number of pairs. Use whole numbers. Row 0320
    shall equal the sum of Rows 0321, 0322, and 0323."

2.  Row 0321 - [Copper]{.underline} - The definition of this row is
    revised to read: "Enter the number of sheath kilometers of twisted
    pair copper cable. Use whole numbers."

3.  Row 0322 - [Fiber]{.underline} - The definition of this row is
    revised to read: "Enter the number of sheath kilometers of fiber.
    Use whole numbers."

4.  Row 0323 - [Other]{.underline} - The definition of this row is
    revised to read: "Enter the number of sheath kilometers of aluminum,
    coaxial, and all other sheath kilometers not included in Rows 0321
    or 0322. Use whole numbers.

**PART VIII -- Summary of changes to FCC Report 43-08 (The Operating
Data Report)**

**A. Table II -- Switched Access Lines in Service**

## Report Definition -- General Instructions

1.  Add the following at the end of the current text: "Any row/column
    data entry which contains UNE data must be accompanied by an
    explanatory footnote identifying the types of UNEs (e.g., "UNE-P")
    that are included."

**B. Table III -- Access Lines in Service by Customer**

## Report Definition -- Form

1.  The top-level column heading "Business Switched Access Lines" is
    extended to the right so that it includes Column (fe), Payphone
    Lines.

## Report Definition -- General Instructions

2.  Add the following at the end of the current text: "Any row/column
    data entry which contains UNE data must be accompanied by an
    explanatory footnote identifying the types of UNEs (e.g., "UNE-P")
    that are included."

**PART IX -- Summary of changes to FCC Report 495A (The Forecast of
Investment Usage Report)**

## Report Definition -- Summary

1.  The first paragraph is revised to read: "This document contains the
    Report Definition for FCC Report 495A, the Forecast of Investment
    Usage Report. The following three tables and associated instructions
    implement the requirement that certain telephone plant investment
    used for both regulated and nonregulated purposes be assigned to
    cost categories and allocated on the basis of forecasted regulated
    and nonregulated use. This report provides the forecast and
    resulting investment allocations incorporated in a carrier\'s cost
    support for its access tariffs. Mid-sized incumbent local exchange
    carriers, as defined by Section 32.9000, are relieved from filing
    this report."

2.  The following is added to the table of contents: "The FCC Report
    495A contains the following tables:"

**PART X -- Summary of changes to FCC Report 495B (The Actual Use of
Investment Report)**

## Report Definition -- Summary

1.  The first paragraph is revised to read: "This document contains the
    Report Definition for FCC Report 495B, the Actual Usage of
    Investment Report. The following three tables and the associated
    instructions implement the requirement for reporting the actual
    investment and usage data for those cost categories that are
    allocated on the basis of a forward looking investment allocator.
    The purpose of this report is to enable the Commission\'s staff to
    monitor actual and forecasted investment use, as directed in CC
    Docket 86-111. Mid-sized incumbent local exchange carriers, as
    defined by Section 32.9000, are relieved from filing this report."

2.  The following is added to the table of contents: "The FCC Report
    495B contains the following tables:"

[^1]: The ARMIS reporting requirements were established by the
    Commission in 1987 to facilitate the timely and efficient analysis
    of carrier costs and revenue, to provide an improved basis for
    audits and other oversight functions, and to enhance the
    Commission's ability to quantify the effects of alternative policy
    proposals. Additional ARMIS Reports were added in 1991 and 1992.
    Carriers must submit the ARMIS reports to the Commission annually on
    or before April 1.

[^2]: *See Notices -- Office of Management and Budget -- Standards for
    Defining Metropolitan and Micropolitan Statistical Areas*, 65 Fed.
    Reg. 82228 (2000) *(OMB Notice*).

[^3]: *See Report and Order in CC Docket No. 98-117, Fifth Memorandum
    Opinion and Order in AAD File No. 98-43*, 14 FCC Rcd 11443 (1999)
    *(ARMIS Review Order).*

[^4]: *Automated Reporting Requirements for Certain Class A and Tier 1
    Telephone Companies (Parts 31, 43, 67, and 69 of the FCC's Rules)*,
    CC Docket No. 86-182, Report and Order, 2 FCC Rcd 5770 (1987),
    *modified on recon*., 3 FCC Rcd 6375 (1988) (*ARMIS Order*).

[^5]: 47 C.F.R. § 0.291. In this Order, we revise or clarify all ten
    ARMIS Reports: FCC Report 43--01, the Annual Summary Report, FCC
    Report 43-02, the USOA Report, FCC Report 43-03, the Joint Cost
    Report, FCC Report 43-04, the Access Report, FCC Report 43-05, the
    Service Quality Report, FCC Report 43-06, the Customer Satisfaction
    Report, and FCC Report 43-07, the Infrastructure Report, FCC Report
    43-08, the Operating Data Report, FCC Report 495A, the Forecast of
    Investment Usage Report, and FCC Report 495B, the Actual Usage of
    Investment Report.

[^6]: *See* 5 U.S.C. § 553(b)(3)(B) (providing that notice and comment
    are not required "when the agency for good cause finds (and
    incorporates the finding and a brief statement therefore in the
    rules issued) that notice and public procedure thereon are
    impractical, unnecessary or contrary to the public interest.")

[^7]: *OMB Notice*, at 21.

[^8]: 47 C.F.R. Parts 32, 36, 64, 65, and 69.

[^9]: 47 C.F.R. Part 32.

[^10]: *ARMIS Review Order*, 14 FCC Rcd at 11453-54, paras. 18-20.

[^11]: 47 C.F.R. § 43.21(f).

[^12]: 47 C.F.R. § 43.21(g).

[^13]: *OMB Notice*, at 21.

[^14]: 47 C.F.R. § 43.21(i).

[^15]: *OMB Notice*, at 21.