TABLE OF CONTENTS 

FY 2001 Annual Program Performance Report and 

 Annual Performance Plan for FY 2002 and FY 2003 Page 

Executive Summary..........................................................................................................................................1 

Background.......................................................................................................................................................2 

Licensing ..........................................................................................................................................................4 

Competition ......................................................................................................................................................6 

Enforcement ...................................................................................................................................................19 

Consumer Information Services .....................................................................................................................22 

Spectrum Management...................................................................................................................................27 

Agency-Wide Performance Improvement Initiatives.....................................................................................31 

Program Evaluations ......................................................................................................................................36 

Conclusion......................................................................................................................................................37 

Appendix A (FCC’s Organizational Structure) ..............................................................................................38 

Appendix B (Glossary)...................................................................................................................................40 
 FY 2001 Annual Program Performance Report

- 1 -

Executive Summary 

In FY 2001, the FCC continued to make notable progress in meeting its strategic goals. The FCC met or 

exceeded 80% (31) of its performance measures, partially met 15% (6) of its performance measures, and did 

not meet 5% (2) of its measures. Fiscal Year 2001 data was not available for two measures and these were 

not included in our calculations. However, we will continue to track our progress in meeting these 

performance measures. 

0

4

8

12

16

20

Exceeded Met Partial Not Met No Data

TOTAL

Licensing

Competition

Enforcement

Consumer Information

Spectrum Management

Performance Initiatives

In three of our five activities – licensing, enforcement and consumer information services – we met, and 

more often exceeded, all our performance measures. Our continuing efforts to improve our processing 

procedures and expand our e-Government capabilities have resulted in significant reductions in backlogged 

applications and a marked increase in the number of applications filed electronically. 

In 2001, we continued to implement improvements to our web site, including a complete makeover of our 

home page which resulted in its selection as one of the best sites among Federal agencies. Our “hit” record 

of more than 400 million in 2001 is ample testimony to its usefulness. In enforcement, we continued to 

improve and expand our activities, including a joint venture with state public utility commissions to improve 

our response to informal complaints and, more specifically, to complaints concerning “slamming.” 

In competition, we met or partially met 14 of our 16 measures.1 The two measures that were not met 

required Commission actions on complex rule makings. We met or partially met our goals for four spectrum 

management measures. The re-allocation and shared use of spectrum is, and will continue to be, one of the 

primary objectives of FCC policy making. 

 

1

 Excludes two performance measures for competition where 2001 data will not be available until the Summer of 2002. 
 FY 2001 Annual Program Performance Report

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Background 

Strategic Planning at the FCC 

As required by the Government Performance and Results Act of 1993, the FCC strives to ensure integration 

between its strategic plan, performance plan, and annual budget request. The Annual Program Performance 

Report serves as the FCC’s report card to Congress, the Administration and the American public on how 

effectively we have used our resources to attain our goals. 

The performance report for FY 2001 is based upon the following strategic goals and objectives: 

1. Create a model agency for the digital age. 

a. Lead the way in the Information Age. 

b. Reorganize to create an agency infrastructure conducive to convergence. 

c. Create a faster, flatter, more functional agency. 

d. Preserve and increase the wealth of knowledge and expertise of FCC staff. 

2. Promote competition in all communications markets. 

a. Eliminate barriers to entry in domestic markets. 

b. Deregulate as competition develops. 

c. Enforce the rules so that businesses compete fairly. 

d. Promote competition in international communications markets. 

3. Promote opportunities for all Americans to benefit from the communications revolution. 

a. Ensure access for all Americans to existing and future communications services. 

b. Promote opportunities to expand direct participation in existing and future communications 

businesses. 

c. Foster a consumer friendly marketplace. 

4. Manage the electromagnetic spectrum (the Nation’s airwaves) in the public interest. 

a. Create more efficient spectrum markets. 

b. Increase the amount of spectrum available for use, particularly for new services. 
 FY 2001 Annual Program Performance Report

- 3 -

Further, this FY 2001 performance report identifies the following performance goals and measures: 

1. Create a more efficient, effective, and responsive agency. 

a. Automate agency processes. 

b. Streamline agency’s processes and procedures. 

c. Provide improved access to all agency information. 

d. Reorganize to create an agency infrastructure conducive to convergence. 

e. Preserve and increase the wealth of knowledge and expertise of FCC staff. 

2. Promote competition in all communication markets. 

a. Eliminate barriers to entry in domestic markets. 

b. Deregulate where appropriate to promote competition. 

c. Promote competition in international communications markets. 

d. Enforce the rules so businesses compete fairly. 

3. Promote opportunities for all Americans to benefit from the communications revolution. 

a. Promote access for all Americans to communications services. 

b. Promote consumer education and information. 

4. Manage the electromagnetic spectrum in the public interest. 

a. Promote more efficient use of spectrum. 

b. Foster the increased availability of spectrum. 

In the next several months, we intend to redo our Strategic Plan based on refocusing the agency’s mission, 

strategic objectives and reallocation of resources, including a major restructuring of the FCC that will be 

implemented on March 25, 2002. It is also our intent to streamline our strategic plan to emphasize core 

performance measures that incorporate a number of major functions. This consolidation will allow us to 

report on fewer performance measures but in greater detail. 

We will, of course, continue to consult with our stakeholders and with Congress during this strategic 

planning revision. 

We also continue our efforts to integrate our Annual Performance Plan with our budget development and 

execution. The following graph shows the cross-walk between our budget activities and our performance 

goals. 

Number of Individual Performance Measures by Resource Category/Performance Goals 

Performance 

Goals 

Resource 

Categories 

 

Licensing Competition Enforcement Consumer 

Information 

Spectrum 

Management 

Performance 

Initiatives 

Efficient, effective, 

responsive agency 

4 2 7 

Promote competition 13 4 

Promote opportunities for 

all Americans 

5 2 

Manage electromagenetic 

spectrum 

 

4 
 FY 2001 Annual Program Performance Report

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LICENSING 

This activity includes the authorization or licensing of radio stations, telecommunications equipment and radio 

operators, as well as the authorization of common carrier and other services and facilities. 

Activity Goal: The FCC’s goal is to promote efficient and innovative licensing and authorization of services by 

automating functions and fully implementing automated licensing and electronic filing systems across the 

agency, and by creating a more efficient, effective, and responsive agency with substantially reduced backlogs in 

licensing applications, petitions for reconsideration, and other proceedings. 

Summary: The FCC exceeded its goals for all four performance measures. 

*************** 

Goal A: Create a More Efficient, Effective, and Responsive Agency 

Objective: Automate Agency Processes 

Policy Initiative: 

(A) Electronic Filing: Create a paperless FCC by automating functions and fully 

implementing automated licensing and electronic filing systems to promote one-stop 

shopping. Consolidate individual systems and adopt one standard user interface where 

possible to simplify public use of our systems. 

Objective: Streamline Agency’s Processes and Procedures 

Policy Initiatives: 

(B) Speed of Disposal: Improve our speed of disposal for processing license applications. 

(C) Backlog Reduction: Substantially reduce our backlog including licensing applications, 

petitions for reconsideration and other proceedings. 

(D) Petition for Reconsideration: Act on petitions for reconsideration that do not raise 

significant new issues within 60 days of the record closing. 

 FY99 FY00 FY01 FY02 FY03 Policy Initiatives Goal Actual Goal Actual Goal Actual Goal Goal 

(A) Electronic Filing Provide 

electronic filing 

capabilities for 

licensing 

bureaus/offices.

Provided 

electronic filing 

capabilities for 

licensing 

bureaus/offices.

60% 60% 70% 77% 80% 85% 

(B) Speed of Disposal 90% 88% 90% 89% 90% 94% 95% 95% 

(C) Backlog Reduction No FY99 goal. -- 60% 96% 90% 98.5% 95% 95% 

(D) Petition for Reconsideration No FY99 goal. -- 75% 38% 90% 94% 95% 95% 

Performance Measurement: Performance was measured from data collected in the Quarterly Performance 

and Results Review. 

Results: 

Electronic Filing: Goal exceeded. The FCC has improved its licensing activities through a multiyear plan to reengineer and integrate its licensing databases, and through implementation of 

interactive, electronic filing systems. In FY 2001, the number of applications received electronically 
 FY 2001 Annual Program Performance Report

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by the FCC was 77% of the total processed on systems with electronic filing capability, exceeding 

the Commission’s 70% goal, and representing a 17% increase over FY 2000. 

Speed of Disposal: Goal exceeded. Each of the bureaus and offices sets customer service speed of 

disposal goals for the processing of license applications, tariff filings, formal complaints, and cable 

service activities. Of 603,417 actions disposed of in FY 2001, 565,830 were disposed of within the 

speed of disposal goals. Agency-wide, the percentage of actions disposed of within the speed of 

disposal goals was 94%. The FCC has implemented more efficient state-of-the-art licensing systems 

that expedite the issuance of licenses to its applicants. 

Backlog Reduction: Goal exceeded. In FY 2001, the FCC reduced backlogs from 3.1% in the 1st

quarter to 0.82% in the 4th quarter. By the end of FY 2001, the FCC reduced its backlog by 99%. 

On average, backlogs were 1.5% of receipts, well exceeding the goal of 10%. 

Petitions for Reconsideration: Goal exceeded. In FY 2001, 94% of all petitions for reconsideration 

with no significant new issues were acted on within 60 days of record closing, exceeding the 

Commission’s 90% goal, and representing a 56% improvement over FY 2000. 

LICENSING

(Agency Processes/Procedures Goals)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Electronic Filing Speed of Disposal Backlog

Reduction

Petitions for

Reconsideration

Goal

Actual Performance

Fiscal Year 2001
 FY 2001 Annual Program Performance Report

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COMPETITION 

This activity includes formal inquiries and rule making proceedings to establish or amend the Commission's 

rules and regulations, action on petitions for rule making and requests for rule interpretations or waivers; 

economic studies and analyses; and development of equipment standards. 

Activity Goal: The FCC’s goal is to encourage, through our policy and rule making activities, the 

development of competitive, innovative, high-quality communications systems, with a minimum of 

regulation or with an absence of regulation where appropriate in a competitive market. This will be 

accomplished by eliminating barriers to entry in domestic markets, by deregulating where appropriate, by 

promoting competition in international communications markets, by promoting opportunities for all 

Americans to utilize communications services, and by the vigorous enforcement of our rules and regulations. 

Summary: The FCC met or exceeded its goals in 14 of 16 performance measures. The FCC did not meet 

its goals in two major rule making proceedings. However, the goals in each of these have been revised and 

we anticipate meeting our goals in FY 2002. 

*************** 

Goal B: Promote Competition in All Communications Markets

Objective: Deregulate Where Appropriate to Promote Competition

Policy Initiative: Reduce the burden of filing, reporting, record keeping and accounting requirements across all 

communications industries. Baseline data was available from the agency’s annual Information Collection 

Budget submitted to Office of Management and Budget. Forms reduction was also tracked in the Quarterly 

Performance and Results Review.

Goal Actual Performance 

FY99: 

3⁄4 We will continue to evaluate whether certain 

regulations are no longer necessary in the 

public interest and should be repealed or 

modified. 

FY00: 

3⁄4 Complete an aggressive 2000 Biennial Review 

aimed at eliminating unnecessary rules and 

regulations.

3⁄4 10% reduction in the number of forms required 

by the FCC, using FY99 as a baseline.

FY01: 

3⁄4 20% reduction in the number of forms required 

by the FCC, using FY99 as a baseline.

FY02: 

3⁄4 30% reduction in the number of forms required 

by the FCC, using FY99 as a baseline.

FY03: 

3⁄4 Review 50% of agency forms and streamline 

and modernize forms, where appropriate.

FY99:

3⁄4 Initiated a number of rule makings to eliminate obsolete or 

overlapping regulations and/or reporting requirements 

identified in the FY98 Biennial Review of agency’s rules 

and regulations. 

FY00: 

3⁄4 Biennial Review completed on schedule. The FCC issued a 

Memorandum Opinion and Order relaxing a number of mass 

media procedures. 

3⁄4 14 forms eliminated, and 12 added for an annual reduction of 

1.4%. 

FY01: 

3⁄4 Goal partially met. 

3⁄4 During FY01, the FCC eliminated 20 forms and established 

9 new forms with a year-end total of 130, representing a 

9.1% reduction from FY99 (143 FCC forms). Due to recent 

increases in the number of FCC forms, the result of data 

collection requirements imposed by Congress, the FCC 

failed to meet this goal. However, we have determined that 

a preferred way to measure the agency’s progress in 

reducing reporting requirements would be to review 50% of 

the agency’s forms annually, and streamline and modernize 

forms, where appropriate. This performance measurement 

will be implemented in FY03. 
 FY 2001 Annual Program Performance Report

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Goal B: Promote Competition in All Communications Markets

Objective: Eliminate Barriers to Entry in Domestic Markets

Policy Initiative: Digital Television (DTV). Performance was measured using data collected in the Quarterly 

Performance and Results Review. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Authorize DTV service.

FY01: 

3⁄4 Authorize In-Band On-Channel Service 

(conversion of analog radio to digital). 

3⁄4 Adopt Report and Order in Digital Audio 

Broadcasting Proceeding. 

FY02: 

3⁄4 License all commercial DTV stations (on air). 

3⁄4 License national digital radio service. 

3⁄4 Assess competition in the multi-channel 

market. 

FY03: 

3⁄4 Act on all grantable DTV applications within 

9 months of receipt. 

FY00: 

3⁄4 In FY00, Digital Broadcast Buildout shows that 67 of 

1,314 (5.1%) DTV commercial stations were 

licensed; and 8 of 384 (2.1%) non-commercial 

stations were licensed. 

FY01: 

3⁄4 This goal was not met. 

3⁄4 The digital radio goals were not achieved because the 

AM and FM systems had not been fully developed or 

tested. The first FM test evaluation was submitted on 

December 3, 2001 by the National Radio Systems 

Committee (NRSC). The Commission issued a 

Public Notice seeking comment on the NRSC FM 

evaluation on December 19, 2001. It is expected that 

NRSC will complete the AM evaluation in midFY02. The Commission will, in turn, issue a Public 

Notice soliciting public comment on the NRSC AM 

system recommendations. 

3⁄4 The FCC expects to adopt a First Report and Order 

and a Further Notice of Proposed Rule Making in the 

Digital Audio Broadcasting Proceeding in FY02; and 

a Second Report and Order adopting transmission 

standards, technical standards and service and 

licensing rules in FY03.
 FY 2001 Annual Program Performance Report

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Goal B: Promote Competition in All Communications Markets

Objective: Eliminate Barriers to Entry in Domestic Markets

Policy Initiative: Complete the opening of local telecommunications markets through pro-competitive 

unbundling, interconnection and co-location policies. Performance was measured by reviewing the Common 

Carrier Bureau’s Annual Competition Report. 

Goal Actual Performance 

FY99: 

3⁄4 We will continue to implement the local 

competition provisions of the 

Telecommunications Act of 1996. 

FY00: 

3⁄4 15% of households with 1 new local residential 

competitor; 

3⁄4 10% have 2 new local residential competitors. 

FY01: 

3⁄4 30% of households live in zip codes with 1 

CLEC; 

3⁄4 10% with 2 CLECs. 

FY02: 

3⁄4 90% of households live in zip codes with 1 

CLEC; 

3⁄4 80% with 2 CLECs; 

3⁄4 10% with 3 CLECs. 

FY 03: 

3⁄4 92% of households live in zip codes with 1 

CLEC; 

3⁄4 82% with 2 CLECs; 

3⁄4 10% with 3 CLECs.

FY99: 

3⁄4 Implemented a variety of rule makings designed to 

provide guidance in the areas of unbundling, 

collocation, line sharing, and pricing in order to 

facilitate local competition. 

FY00: 

3⁄4 88% of households with 1 new CLEC; 

3⁄4 77% of households with 2 new CLECs. 

FY01: 

3⁄4 FY01 data not available, but it appears likely we will 

exceed our goal. By the end of December of 2000, 

88% of households within each zip code had access to 

at least one new competitive local exchange carrier 

(CLEC) and 77% had access to two. Competitive 

local exchange carriers reported 16.4 million of 

approximately 194 million local telephone lines 

nationwide were in service to end-user customers, 

compared to 12.7 million six months earlier. This 

represents a 29% increase in the CLEC market size 

during the second half of calendar year 2000.

3⁄4 The FCC continues to note measured growth in the 

development of local telecommunications 

competition. As a result, competition has increased, 

costs to consumers are lower, and the choices for 

options and services for consumers have increased.

LOCAL EXCHANGE CARRIER COMPETITION

(Goal 01: 30% of Households with Access to 1 Competitive Local Exchange 

Carrier (CLEC); and 10 % with 2 CLECs)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 99 FY 00

% with access to one

CLEC

% with access to two

CLECs

LOCAL EXCHANGE CARRIER COMPETITION

(Goal 01: 30% of Households with Access to 1 Competitive Local Exchange 

Carrier (CLEC); and 10 % with 2 CLECs)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 99 FY 00

% with access to one

CLEC

% with access to two

CLECs
 FY 2001 Annual Program Performance Report

- 9 -

Goal B: Promote Competition in All Communications Markets

Objective: Eliminate Barriers to Entry in Domestic Markets

Policy Initiative: Section 271 Applications. Performance was measured using data collected in the 

Quarterly Performance and Results Review. 

Goal Actual Performance 

FY99: 

3⁄4 We will continue to work closely with other Federal 

agencies, state commissions and the public to 

ensure the expeditious processing of Section 271 

applications. 

FY00: 

3⁄4 Expeditiously process Section 271 applications 

within 90 days of receipt.

FY01: 

3⁄4 Expeditiously process Section 271 applications 

within 90 days of receipt.

3⁄4 Periodic review of UNE requirements.

FY02: 

3⁄4 Expeditiously process Section 271 applications 

within 90 days of receipt.

FY03: 

3⁄4 Same as FY02.

FY99: 

3⁄4 Obtained ex parte exemption to allow free 

communication/close coordination with 

Department of Justice in reviewing Section 271 

applications. 

FY00: 

3⁄4 The FCC received 4 applications and approved 2 

within 90 days of receipt. 

FY01: 

3⁄4 Goal met. 

3⁄4 The FCC received 6 applications covering 7 

states. Five applications were approved during 

FY01. (The Missouri application was withdrawn 

and later re-filed jointly with Arkansas. This 

application was approved during the 1st quarter of 

FY02.) 

3⁄4 100% of processing goals were met pursuant to 

the competitive requirements of Section 271 of 

the Act. In doing so, the FCC increased 

competition in the long-distance market through 

Bell Operating Company entry into in-region 

long-distance.

3⁄4 On December 20, 2001, the FCC released an 

NPRM seeking to examine the framework under 

which incumbent local exchange carriers (LECs) 

must make unbundled network elements available 

to requesting carriers, and posing questions on the 

lessons learned since the passage of the 

Telecommunications Act of 1996. 

3⁄4 The NPRM seeks to identify more precisely how 

incumbent LECs should provide access to their 

facilities. The comment cycle will close in April 

2002.
 FY 2001 Annual Program Performance Report

- 10 -

Goal B: Promote Competition in All Communications Markets

Objective: Eliminate Barriers to Entry in Domestic Markets

Policy Initiative: Mobile Wireless. Performance was measured by reviewing the Wireless 

Telecommunications Bureau’s Annual Competition Report. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 73% of households with access to 5 or more 

mobile wireless providers.

FY01: 

3⁄4 78% of households with access to 5 or more 

mobile wireless providers.

FY02: 

3⁄4 80% of households with access to 5 or more 

mobile wireless providers.

FY03: 

3⁄4 Same as FY02.

FY00: 

3⁄4 75% of households with access to 5 or more providers. 

FY01: 

3⁄4 FY01 statistics will be released in the summer of 2002 

in the FCC’s Seventh Annual CMRS Competition 

Report. At the end of December 2000, 259 million 

people had access to 3 or more operators (cellular, 

broadband PCS, and/or digital specialized mobile radio 

providers) offering mobile telephone services in the 

counties in which they live. Over 214 million people, 

or 75% of the U.S. population, live in areas with 5 or 

more mobile telephone operators. The mobile 

telephony sector of CMRS experienced a year of strong 

growth and competitive development.

3⁄4 As a result:

3⁄4 increased number of users and services available;

3⁄4 increased selection of additional services and 

lowered costs;

3⁄4 increased use of hand held devices or PDAs to 

access information on the Internet;

3⁄4 20 million users now have free long distance; and

3⁄4 2.5 GHz and 3G rollout now underway.

WIRELESS COMPETITION

(FY 01 Goal: 78% Population with Access to 5 or More Providers)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 98 FY 99 FY 00

3 or more competitors

4 or more competitors

5 or more competitors

6 or more competitors

7 or more competitors

Source of Data: Sixth Report on the State of Competition in the Wireless Industry, July 2001

* FY 01 statistical data will not be available until August 2002.
 FY 2001 Annual Program Performance Report

- 11 -

Goal B: Promote Competition in All Communications Markets

Objective: Eliminate Barriers to Entry in Domestic Markets

Policy Initiative: Advanced Technologies -- Multichannel video programming distributors (MVPDs) and 

advanced cable. Performance was measured by reviewing the Cable Services Bureau’s Annual Report on Cable 

Industry Prices. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 15% of households have access to advanced 

cable; 

3⁄4 10% of households with access to 3 or more 

MVPDs. 

FY01: 

3⁄4 15% of households have access to advanced 

cable;

3⁄4 10% of households with access to 3 or more 

MVPDs.

FY02: 

3⁄4 10% of households with access to 3 or more 

MVPDs. 

FY03: 

3⁄4 Same as FY02.

FY00: 

3⁄4 Approximately 58% of television households have 

access to advanced cable (cable modem) service; 

3⁄4 91% of households have access to 3 or more 

MVPDs; 5% access to 4 or more; 5% access to 5 

or more. 

FY01: 

3⁄4 Goal exceeded.

3⁄4 Approximately 67% of television households have 

access to advanced cable (cable modem) service; 

3⁄4 91% of households have access to 3 or more 

MVPDs; 6% access to 4 or more. 

3⁄4 The portion of the population that has access to 

cable modem service has increased significantly. 

The principal competition to cable is from DBS 

which continues to erode cable’s share of the 

market. Competition from other MVPDs, 

including MMDS, SMATV and local exchange 

carriers has decreased as business models have 

changed.

Note: In the future, the FCC will track the 

availability of advanced communications systems of 

which cable is one option.

MULTICHANNEL VIDEO/BROADCASTING 

PENETRATION

(FY 01 Goal: 10% of Households with Access to 3 or More 

Multichannel Video Programming Distributors)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

 FY 98 FY 99 FY 00 FY 01*

2 MVPDs

3 MVPDs

4 MVPDs

5 MVPDs

In order to reflect ongoing consolidation in the MVPD industry, we have changed the 

annual goal in FY 01 to track households with access to 2, 3, or 4 distributors and no 

longer track those with access to 5 or more distributors.
 FY 2001 Annual Program Performance Report

- 12 -

Goal B: Promote Competition in All Communications Markets

Objective: Eliminate Barriers to Entry in Domestic Markets

Policy Initiative: Streamline merger review procedure. Performance was measured from data collected in 

the Quarterly Performance and Results Review. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Develop new merger review timetable. 

FY01: 

3⁄4 Act on all major merger and acquisition 

applications within 180 days of receipt. 

FY02: 

3⁄4 Same as FY01. 

FY03: 

3⁄4 Same as FY02. 

FY00: 

3⁄4 New merger timetable implemented on an expedited 

basis. All mergers submitted after new procedures 

implemented were reviewed within 180 days. 

FY01: 

3⁄4 Goal partially met. 

3⁄4 Thirteen major mergers were acted on within 180 

days of being placed on public notice. Two mergers 

exceeded the goal of 180 days: Deutsche 

Telecom/VoiceStream (196 days) (opinion 

contained a major clarification of the FCC’s 

interpretation of the statutory provision on foreign 

ownership and the initial comment period had been 

extended for an additional 30 days); and Fox/ChrisCraft (261 days) (delay following turnover in 

Commission after Commissioners change in 

administrations). The time clock on AOL/Time 

Warner was stopped at 179 days pending decision 

by the FTC, and the FCC decision was issued less 

than 30 days after the FTC approved the transaction 

on the basis of a consent decree that altered the 

issues to be addressed by the FCC. Many of the 

other cases took substantially less than 180 days. 

3⁄4 By making the entire record of the proceedings 

available over the Internet promptly after filing and 

in an easily accessible format, the web pages have 

both increased effective public access and saved 

Commission staff time responding to requests for 

information on an ad hoc basis. Another significant 

accomplishment during FY01 was the reduction in 

the backlog of applications for the transfer or 

assignment of licenses for radio stations involved in 

proposed mergers. The Commission cleared most 

of these cases during FY01, and in November issued 

a NPRM that established an interim policy and a 

firm schedule for completing proposed decisions on 

the remaining applications. This procedure will 

allow the Commission to meet the 180 day target in 

these cases as well. 
 FY 2001 Annual Program Performance Report

- 13 -

Goal B: Promote Competition in All Communications Markets

Objective: Deregulate Where Appropriate to Promote Competition

Policy Initiative: Streamline the technical rules for and privatize certain aspects of the certification of 

telephone and other equipment.

Goal Actual Performance 

FY99: 

3⁄4 We will initiate rule makings to update Part 68 of 

our rules and regulations to incorporate 

technological innovations. 

FY00: 

3⁄4 Begin reduction in technical rules for certifying 

equipment. 

FY01: 

3⁄4 20% reduction in technical rules for certifying 

equipment.

FY02: 

3⁄4 40% reduction. 

FY03: 

3⁄4 Goal is eliminated.

FY99: 

3⁄4 An NPRM proposing to deregulate Part 68-

Equipment Registration was prepared for 

consideration during FY00. 

FY00: 

3⁄4 FCC began designating domestic 

Telecommunications Certification Bodies 

(TCB) for certifying equipment in June 2000. 

Preparation for implementing the terms of the 

Mutual Recognition Agreement with Europe 

was initiated. In addition, FCC met its goal of 

completing the Part 68 Order, which 

eliminated the regulations governing 

development of technical standards and 

certification procedures for 

telecommunications equipment. 

FY01: 

3⁄4 Goal exceeded. 

3⁄4 Streamlining of rules was completed in FY00. 

During FY01, the FCC significantly 

streamlined equipment authorization 

procedures reducing the time-to-market for 

new products. The backlog of equipment 

authorization applications was reduced from 

700 to less than 200 (71.4%). Speed of 

service for processing equipment 

authorization applications declined from an 

average of 51 days to 37 days. While certain 

equipment must be approved by the FCC, 

most equipment today can either be selfapproved by the manufacturer or approved by 

a TCB. 

Note: The FCC achieved its goal of 

streamlining its technical certification rules 

ahead of schedule and this performance 

measure will be discontinued. 
 FY 2001 Annual Program Performance Report

- 14 -

Goal B: Promote Competition in All Communications Markets

Objective: Promote Competition in International Communications Markets

Policy Initiative: Encourage new market entrants and opportunities for the wireless and satellite industries, 

including fixed and mobile voice services, fixed and mobile data services, direct broadcast services, and earth 

exploration services. Average price of an international phone call is tracked in the Quarterly Performance and 

Results Review. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Average price for an international call: $.65 

per minute. 

FY01: 

3⁄4 Average price of an international call: $0.55 

per minute. 

FY02: 

3⁄4 Average price of an international call: $0.45 

per minute. 

FY03: 

3⁄4 Average price of an international call: $0.40 

per minute. 

FY00: 

3⁄4 Average price of an international phone call: $0.51 

per minute. 

FY01: 

3⁄4 Goal exceeded. 

3⁄4 The average price of an international call as of 

December 2000 was $0.43 per minute. The 

estimated savings in the telephone rates over the 

previous year were approximately $2 billion to 

American consumers. 
 FY 2001 Annual Program Performance Report

- 15 -

Goal B: Promote Competition in All Communications Markets

Objective: Promote Competition in International Communications Markets

Policy Initiative: Encourage new market entrants and opportunities for the wireless and satellite industries, 

including fixed and mobile voice services, fixed and mobile data services, direct broadcast services, and earth 

exploration services. Performance will be measured by the number of new system entrants licensed and 

subscribership statistics to these new services. 

Goal Actual Performance 

FY99: 

3⁄4 We will continue to participate in global 

standard selling for communications 

services. 

FY00: 

3⁄4 Encourage satellite and wireless industries to 

develop sharing mechanisms whenever 

possible and license as many of new entrant 

systems as possible.

FY01: 

3⁄4 Same as FY00. 

FY02: 

3⁄4 Same as FY01. 

FY03: 

3⁄4 Encourage competition in the international 

telecommunications market by authorizing 

systems as quickly as possible and by 

coordinating the global allocation of 

spectrum. (New goal) 

FY99: 

3⁄4 Proposed rules to implement the international 

arrangements governing Global Mobile Personal 

Communications by Satellite adopted by ITU. 

FY00: 

3⁄4 The FCC developed an innovative licensing approach for 

a new generation of mobile satellite services in the 2GHz 

frequency band, and released an NPRM and Report and 

Order addressing difficult spectrum sharing issues 

between the terrestrial fixed and fixed satellite services. 

FY01: 

3⁄4 Goal met. 

3⁄4 INTELSAT Licenses: In May 2001, the FCC issued an 

Order finalizing the INTELSAT privatization under the 

Orbit Act. As a result, the 17 INTELSAT authorizations 

granted by the Commission in the prior year became 

effective upon completion of privatization in July 2001. 

3⁄4 Inmarsat Orbit Compliance: In October 2001, the 

Commission adopted an Order approving Inmarsat 

privatization consistent with the Orbit Act and authorized 

four companies to operate Inmarsat terminals in the 

United States. The order also authorized several other 

companies to offer Inmarsat service. 

3⁄4 Ka-Band: The FCC issued 11 satellite licenses for 34 

orbit locations in the Ka-Band. The authorized systems 

are expected to provide advanced broadband satellite 

service and service to remote and rural areas. 

3⁄4 2 GHz Licensing: The FCC issued 8 licenses for launch 

and operation of 8 mobile satellite systems in the 2 GHz 

band. Once operational, these systems will provide 

mobile satellite service as well as high speed internet 

services via satellite to businesses and consumers. 

3⁄4 V-Band: The FCC proposed an allocation for satellite 

services in the V-Band that allowed terrestrial operation 

to take place in the same band. 

3⁄4 ATC NPRM: The FCC adopted an NPRM exploring the 

possibility of allowing mobile satellite service operators 

to use terrestrial components in their mobile satellite 

service spectrum. 

3⁄4 Ku-Band: The FCC proposed a band arrangement and 

licensing rules for NGSO/FSS satellite operators in the 

Ku-Band. The proposal is designed to facilitate 

maximum use of spectrum allocated for this satellite 

service. 
 FY 2001 Annual Program Performance Report

- 16 -

Goal C: Promote Opportunities for All Americans to Benefit from the Communications 

 Revolution

Objective: Promote Access for All Americans to Communications Services

Policy Initiative: Increase penetration rates to underserved areas. Performance is measured from data 

contained in the Wireless Telecommunications Bureau’s Annual Competition Report. 

Policy Initiative: Schools and Libraries. Performance for Universal Service and related goals is derived 

from data obtained from the Universal Service Administrator and from the National Center for Educational 

Statistics. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 15% increase in penetration rate for mobile wireless 

telephone services. 

FY01: 

3⁄4 30% increase in penetration rate for mobile wireless 

telephone services. 

FY02: 

3⁄4 25%-30% increase in penetration rate for mobile 

wireless telephone services. 

FY03: 

3⁄4 Same as FY02.

FY00: 

3⁄4 28% increase in penetration rates.

FY01: 

3⁄4 Goal exceeded. 

3⁄4 Year-end 2000 data indicated a 39% overall 

nationwide penetration rate for mobile 

telephone services. The mobile telephony 

sector of CMRS experienced increased 

competition in 2000 resulting in lower prices 

for consumers and an increase in 

subscribership from 86 million to 109.5 

million. 

Goal Actual Performance 

FY99: 

3⁄4 We will work to improve the connections of 

classrooms, libraries and rural health facilities to the 

Internet. 

FY00: 

3⁄4 75% of schools and libraries connected to the 

Internet. 

FY01: 

3⁄4 90% of public school instructional classrooms 

connected to the Internet. 

FY02: 

3⁄4 93% of public school instructional classrooms 

connected to the Internet. 

FY03: 

3⁄4 100% of public school instructional classrooms 

connected to the Internet. 

3⁄4 85% of private school instructional classrooms 

connected to the Internet. 

FY99: 

3⁄4 Released Order extending funding for schools 

and libraries to get connected to the Internet. 

FY00: 

3⁄4 77% of public school instructional classrooms 

connected to the Internet. 

FY01: 

3⁄4 FY01 statistics will not be available until late 

spring 2002. The schools and libraries 

program provides discounts to public and 

private schools and public libraries for 

advanced communication services and 

equipment. As of 2000, over 82% of the 

nation’s public schools participate in the 

program providing all students free access to 

Internet services in their classrooms and local 

libraries. 
 FY 2001 Annual Program Performance Report

- 17 -

Goal C: Promote Opportunities for All Americans to Benefit from the Communications 

 Revolution

Objective: Promote Access for All Americans to Communications Services

Policy Initiative: Rural/Underserved Communities. Performance will be tracked in the Quarterly 

Performance and Results Review. 

Goal C: Promote Opportunities for All Americans to Benefit from the Communications 

 Revolution

Objective: Promote Consumer Education and Information

Policy Initiative: Telephone billing practices. Performance will be tracked in the Quarterly Performance 

and Results Review. 

Policy Initiative: Underserved consumers. Performance will be tracked in the Quarterly Performance and 

Results Review. 

Goal Actual Performance 

FY03: 

3⁄4 50% of eligible low-income consumers utilize 

Lifeline Services. (New goal) 

Goal Actual Performance 

FY03: 

3⁄4 Increase consumer awareness and understanding of 

long distance, international, and wireless plans and 

services to reduce consumer expenditure. (New 

goal) 

3⁄4 Reach one million consumers in FY03 by 

producing and distributing 6 video news releases 

and 4 satellite media tours. (New goal) 

Goal Actual Performance 

FY03: 

3⁄4 Develop materials to inform and educate 

consumers on their rights and responsibilities; 

include focusing on underserved groups including 

the Hispanic and African American communities, 

Indian Country, and consumers with disabilities. 

(New goal) 
 FY 2001 Annual Program Performance Report

- 18 -

Goal C: Promote Opportunities for All Americans to Benefit from the Communications 

 Revolution

Objective: Promote Consumer Education and Information

Policy Initiative: Telephone Area Codes. Performance was measured by increased utilization rates for 

numbers and the quantity of numbers returned. FY 1999 will serve as baseline. 

Policy Initiative: More efficient number pooling. Performance was measured by increased utilization rates 

for numbers and the quantity of numbers returned. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Approve number optimization plan. 

FY01: 

3⁄4 Decrease number of new area codes added by at 

least 8%.

FY02: 

3⁄4 Decrease number of new area codes added by at 

least 20%. 

FY03: 

3⁄4 Same as FY02. 

FY00: 

3⁄4 FCC issued two Report and Orders on Number 

Resource Utilization. 

FY01: 

3⁄4 Goal partially met.

3⁄4 The FCC issued a Third Report and Order on 

Number Resource Optimization. Fourteen new 

area codes were activated in 2000, and 20 codes 

were scheduled to be activated in 2001. This 

represents a 43% increase in area code activation, 

compared to the period before the Commission’s 

number conservation measures were implemented. 

However, this still represents a significant decline 

in area code activation, which we expect to 

continue to decrease after the areas that currently 

need resources implement area code relief. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Implement more efficient number block pooling 

for at least 18 of the 100 largest MSAs. 

FY01: 

3⁄4 Implement more efficient number block pooling 

for at least 18 of the 100 largest MSAs. 

FY02: 

3⁄4 Implement more efficient number block pooling 

for at least 40 of the 100 largest MSAs. 

FY03: 

3⁄4 Same as FY02. 

FY00: 

3⁄4 On-going. National pooling framework established; 

several state pooling trials in place. 

FY01: 

3⁄4 Goal partially met.

3⁄4 The FCC issued a Third Report and Order on 

Number Resource Optimization that set forth final 

procedures and established a Federal cost recovery 

mechanism for pooling. The FCC also established 

the 1st quarter schedule for implementation of 

pooling. Despite a rise in area code activation, 

pooling has contributed directly to a significant 

decrease in net central office code assignments, 

from an average of 2,172 codes per month for the 

period of January-October 2000, to 413 for JanuaryOctober 2001. 
 FY 2001 Annual Program Performance Report

- 19 -

ENFORCEMENT 

This activity includes enforcement of the Communications Act of 1934 and the Commission's rules, 

regulations and authorizations, including investigations, inspections, compliance monitoring, and sanctions 

of all types. It also includes the receipt and disposition of formal complaints regarding common carrier rates 

and services, the review and acceptance/rejection of carrier tariffs, and the review, prescription, and audit of 

carrier accounting practices. 

Activity Goal: The FCC’s goal is to promote the public interest and pro-competitive policies by enforcing 

statutory provisions and rules and regulations that ensure that Americans are afforded efficient use of 

communications services and technologies. This will be accomplished by enforcing the existing rules so that 

businesses compete fairly. 

Summary: The FCC met or exceeded its goals in all four performance measures. 

*************** 

Goal B: Promote Competition in All Communications Markets

Objective: Enforce the Rules so that Businesses Compete Fairly

Policy Initiative: Use the Accelerated Docket and other means to expedite resolution of important 

competition-related formal complaints. The number of formal complaints was tracked in the Quarterly 

Performance and Results Review. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 10% increase in Common Carrier formal 

complaints resolved per attorney. 

FY01: 

3⁄4 25% increase in Common Carrier formal 

complaints resolved per attorney. 

FY02: 

3⁄4 50% increase in Common Carrier formal 

complaints resolved per attorney. 

FY03: 

3⁄4 Same as FY02. 

FY99: 

3⁄4 Pending formal Common Carrier complaints were 

reduced by 21% over FY98 levels. 

FY00: 

3⁄4 71% increase in Common Carrier formal 

complaints resolved per attorney. 

FY01: 

3⁄4 The FCC far exceeded this goal, achieving a 187% 

increase in the number of Common Carrier formal 

complaints resolved per attorney (using FY99 as a 

baseline). Improved efficiency in resolving 

complaints makes the formal complaint process a 

more credible option for dispute resolution and a 

deterrent to unlawful conduct. 
 FY 2001 Annual Program Performance Report

- 20 -

Goal B: Promote Competition in All Communications Markets

Objective: Enforce the Rules so that Businesses Compete Fairly

Policy Initiative: Show zero tolerance for perpetrators of consumer fraud such as slamming and cramming. 

Impose substantial monetary forfeitures against the worst offenders. Performance was tracked through 

analysis of data collected in the Quarterly Performance and Results Review. 

Policy Initiative: Enforce all disability accessibility provisions. Performance was tracked through analysis 

of data collected in the Quarterly Performance and Results Review. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 10% reduction in the number of long-distance 

slamming informal complaints. 

FY01: 

3⁄4 20% reduction in the number of long-distance 

slamming informal complaints. 

FY02: 

3⁄4 40% reduction in the number of long-distance 

slamming informal complaints. 

FY03: 

3⁄4 Improve/increase working relationship with states 

to enforce new slamming rules. (New goal)

FY00: 

3⁄4 Data collection procedures were under review such 

that it was not possible to determine if goal was 

met. However, significant monetary fines were 

levied on carriers guilty of slamming practices. 

FY01: 

3⁄4 The FCC exceeded its goal with a 51% reduction 

in the number of long-distance slamming informal 

complaints. This reflects the industry’s attempt to 

be more consumer-oriented, to avoid any illegal 

action and to provide the consumer with a more 

reliable, consumer friendly service. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Implement all disability accessibility rules; achieve 

65% compliance with new disability rules. 

FY01: 

3⁄4 Achieve 80% compliance with new disability rules. 

FY02: 

3⁄4 Achieve 85% compliance with new disability rules. 

FY03: 

3⁄4 Resolve informal consumer accessibility complaints 

within 6 months of filing; extraordinarily complex 

or difficult cases within 12 months. (New goal)

FY99: 

3⁄4 Released an Order implementing Section 255 of 

the Telecommunications Act, which is the basis 

for enforcement. 

FY00: 

3⁄4 The FCC continues to monitor disability actions 

and has resolved a number of informal 

complaints. No formal complaints were filed in 

FY00.

FY01: 

3⁄4 The FCC continues to monitor disability-related 

enforcement issues and has initiated one 

investigation in this area. No disability-related 

formal complaints were filed in FY01. 
 FY 2001 Annual Program Performance Report

- 21 -

Goal B: Promote Competition in All Communications Markets

Objective: Enforce the Rules so that Businesses Compete Fairly

Policy Initiative: Expeditiously resolve complaints concerning spectrum use, public safety, and technical 

issues such as air navigation hazards, interference, station license requirements and Emergency Alert System 

(EAS) rules. Performance was tracked through analysis of data collected in the Quarterly Performance and 

Results Review. 

Goal Actual Performance 

FY99: 

3⁄4 We will enhance our capabilities to resolve radio 

interference problems by updating our radio 

direction finding systems. 

FY00: 

3⁄4 85% compliance with antenna registration, 

marking and lighting rules. 

FY01: 

3⁄4 90% compliance with antenna registration, 

marking and lighting rules. 

FY02: 

3⁄4 92% compliance with antenna registration, 

marking and lighting rules. 

FY03: 

3⁄4 92% compliance with antenna registration, 

marking and lighting rules. 

3⁄4 100% compliance with filing of basic cable 

signal leakage reports. (New goal)

3⁄4 Respond to immediate safety of life emergencies 

within 24 hours, 100% of the time. (New goal)

3⁄4 Respond to 90% of interference complaints 

made by public safety entities within 20 days of 

receipt (cases that cannot be resolved by 

telephone inquiry/follow-up). (New goal) 

3⁄4 Respond to 90% of industry complaints 

concerning deliberate FCC rule violations that 

adversely impact the complainant’s legitimate 

business interests (cases that cannot be resolved 

by telephone inquiry/follow-up). (New goal)

FY99: 

3⁄4 Updated a variety of radio direction finding systems 

to aid in enforcement activities. 

FY00: 

3⁄4 The FCC inspected 2,151 towers: 92% were 

registered and 94% were properly marked and lit.

FY01: 

3⁄4 Goal exceeded. 

3⁄4 The FCC inspected 2,156 towers: 97% were 

registered and 96% were properly marked and lit. 

Achieving this goal significantly reduced the 

potential of an aviation accident directly caused by 

an improperly marked or unlit tower. As 

compliance with registration improves, general 

awareness of the requirements for the industry 

increases, translating into a higher percentage of 

compliance with the registration, marking and 

lighting requirements. 
 FY 2001 Annual Program Performance Report

- 22 -

CONSUMER INFORMATION SERVICES 

This activity includes the publication and dissemination of Commission decisions and actions, and related 

activities; public reference services; the duplication and dissemination of Commission records and databases; 

the receipt and disposition of public inquiries; informal consumer complaints; consumer, small business and 

public assistance; and public affairs and media relations. 

Activity Goal: The FCC’s goal is to provide information services to our customers in the most useful formats 

available and in the most timely, accurate, and courteous manner possible. This will be accomplished by 

evolving the FCC’s web site into a model for accessibility and availability of information and by ensuring that all 

agency electronic and information technologies are accessible and usable by persons with disabilities. 

Summary: The FCC met or exceeded its goals in all four performance measures. 

*************** 

Goal A: Create a More Efficient, Effective, and Responsive Agency

Objective: Provide Improved Access to All Agency Information

Policy Initiative: Ensure that all agency electronic and information technologies are accessible to and usable 

by persons with disabilities. Performance was tracked through analysis of data collected in the Quarterly 

Performance and Results Review. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 50% of all agency materials accessible in 

alternative format within 5 days of request. 

FY01: 

3⁄4 75% of agency materials will be accessible within 

3 days of request. Audiotapes will be available 

within 1 week. 

FY02: 

3⁄4 90% of agency materials will be accessible within 

3 days of request. Audiotapes will be available 

within 1 week. 

FY03: 

3⁄4 95% of agency materials will be accessible within 

3 days of request. Audiotapes will be available 

within 1 week. 

FY00: 

3⁄4 The FCC has developed an “on demand” approach 

to making our material accessible. FCC material 

is available in audio, Braille (transcribed), Braille 

(embossed), diskette, and large print. 

FY01: 

3⁄4 Goal met. 

3⁄4 The FCC filled requests for persons with 

disabilities in alternatively formatted information 

within 1 to 2 days after their request was 

submitted. Audiotapes were provided within 2 

days of initial request. The FCC continues to work 

on making all its electronic material accessible to 

disabled customers. 
 FY 2001 Annual Program Performance Report

- 23 -

Goal A: Create a More Efficient, Effective, and Responsive Agency

Objective: Provide Improved Access to All Agency Information

Policy Initiative: Evolve the FCC’s web site into a model for accessibility and availability of information. 

Develop electronic systems or sub-systems to provide tracking information about Commission proceedings and 

processes, including licensing, policy development, and issues resolution. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Define requirements for agency-wide plan 

to improve online access to FCC 

information. 

FY01: 

3⁄4 Develop phased-in plan to improve online 

access to FCC information. 

FY02: 

3⁄4 Implement plan to improve access to FCC 

information via the Internet. 

FY03: 

3⁄4 Continue to implement plan to improve 

access to FCC information via the Internet. 

FY00: 

3⁄4 The FCC established a web evaluation task force to 

survey our customers and identify ways to improve 

access to all FCC information. 

FY01: 

3⁄4 Goal met.

3⁄4 During FY01, the FCC made substantial achievements in 

improving online access to its information--

• Established the Web Content Management Committee, 

comprised of bureau and office representatives, to 

implement new procedures to ensure that information 

made available on the web site is accurate and timely. 

• Redesigned the agency’s web site to make information 

compliant with Section 508 disability requirements. 

The redesign also meets requirements for assistive 

devices used by the disabled community.

• Implemented a new enterprise search engine, allowing 

users to do more effective and robust searching of 

information across our web site.

• Unveiled “Bienvenidos,” our consumer pages for 

Spanish-speaking consumers. 

• Implemented web-based telephone company locator 

system that provides information such as company’s 

business name and primary address, jurisdictions in 

which the company operates, as well as other 

information. 

• Implemented Electronic Document Management 

System (EDOCS) to provide a central repository of 

official documents released by the FCC. 

• Improved access to consumer information. 

• Categorized all of our consumer fact sheets onto an 

online directory by topic and subtopics for easier 

access. 

• Provided an online version of the toll-free telephone 

menu system. 

• Consolidated complaint information into one site to 

make it easier for consumers to file. 

• Consumers now can get quick information on their 

most commonly asked telecommunication questions 

through our new FAQ heading. 

3⁄4 Redesigning the agency’s web site and web pages 

provides consumers and the industry with improved and 

more timely access to FCC information. 
 FY 2001 Annual Program Performance Report

- 24 -

Goal A: Create a More Efficient, Effective, and Responsive Agency

Objective: Provide Improved Access to All Agency Information

Policy Initiative: Provide improved access to consumer information. Performance is tracked through 

analysis of data collected in the Quarterly Performance and Results Review. 

Goal C: Promote Opportunities for All Americans to Benefit from the Communications 

Revolution 

Objective: Promote Access for All Americans to Communications Services 

Policy Initiative: Telephone Inquiries. 

Goal Actual Performance 

FY03: 

3⁄4 100% of consumer-related educational materials 

available in Spanish. (New goal)

Goal Actual Performance 

FY03: 

3⁄4 Reduce average response time to telephone 

inquiries by 50%. (New goal)
 FY 2001 Annual Program Performance Report

- 25 -

Goal C: Promote Opportunities for All Americans to Benefit from the Communications 

 Revolution 

Objective: Promote Access for All Americans to Communications Services 

Policy Initiative: Complaints/Information. Performance was tracked through analysis of data collected in 

the Quarterly Performance and Results Review. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 10% reduction in response to informal 

consumer complaints. 

FY01: 

3⁄4 Reduce average response time to informal 

consumer complaints to less than 10 days. 

FY 02: 

3⁄4 Reduce average response time to informal 

consumer complaints to 5-7 days. 

FY03: 

3⁄4 Same as FY02. 

FY99: 

3⁄4 Y2K and other problems with the automated informal 

complaint system required significant upgrades and 

revisions, which delayed response time improvements. 

FY00: 

3⁄4 The FCC achieved a 100% reduction in backlog of 

informal consumer complaints. Average time taken to 

respond to a complaint was reduced to 10-13 days. 

FY01: 

3⁄4 Goal exceeded. 

3⁄4 During FY01, the FCC received 111,528 informal 

complaints and disposed of 122,247 (including those 

pending from previous year). The average time 

required for staff to respond to informal consumer 

complaints was reduced to less than 10 business days. 

Correspondingly, informal complaints are being 

processed or resolved in a more timely fashion by 

common carriers. 

93,755

126,356 122,247

42,558

111,528

10,306

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Receipts Disposals Pending

INFORMAL COMPLAINTS

Total FY00 Total FY01 Total FY00 Total FY01 End of FY00 End of FY01
 FY 2001 Annual Program Performance Report

- 26 -

Goal C: Promote Opportunities for All Americans to Benefit from the Communications 

 Revolution 

Objective: Promote Access for All Americans to Communications Services 

Policy Initiative: Consumer Outreach. Performance was measured by the number of joint partnership 

programs the FCC establishes during a fiscal year. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Implement consumer outreach program, including 

new consumer advocacy partnerships with Federal, 

state, and local governments, industry, and 

consumer groups. 

FY01: 

3⁄4 Implement consumer outreach program, including 

new consumer advocacy partnerships. 

FY02: 

3⁄4 Extend partnerships with industry and consumer 

groups. 

FY03: 

3⁄4 Improve and increase working partnerships with 

consumer groups, government, agencies and 

industry. 

FY00: 

3⁄4 Established consumer advocacy partnerships with 

Federal, state, and local governments. Also 

launched a pilot database project, the State and 

National Action Plan (SNAP), which shares data 

on slamming and cramming complaints and 

inquiries. See FY00 Annual Program 

Performance Report for a listing of additional 

significant activities.

FY01: 

3⁄4 Goal met. 

3⁄4 The FCC established partnerships with Federal, 

state and local government agencies, consumer 

groups, and the military for distribution of 

information. 

3⁄4 The FCC began a campaign to educate consumers 

regarding inexpensive international calling 

options. As part of this campaign, the 

Commission developed a brochure to provide 

critical information to consumers on international 

calling and associated rates. The brochures, 

produced in 13 languages, were made available 

on the FCC's web site (http://www.fcc.gov/cib/ 

information_directory.html#International) in 

October 2001. 

3⁄4 Established the Consumer/Disability 

Telecommunications Advisory Committee 

(C/DTAC), comprised of representatives from 

industry and consumer groups, including 

consumers with disabilities. C/DTAC advises the 

Commission on issues that are important to all 

consumers. 

3⁄4 Entered into an agreement with the Advisory 

Council on Historic Preservation and the National 

Conference of State Historic Preservation 

Officers to streamline the historic review process 

for collocated antennas.
 FY 2001 Annual Program Performance Report

- 27 -

SPECTRUM MANAGEMENT 

This activity includes management of our Nation’s airwaves as mandated by the Communications Act of 

1934, as amended. Spectrum management includes the structure and processes for allocating, assigning, and 

licensing this scarce resource in a way that promotes competition while ensuring that the public interest is 

served. In order to manage spectrum in both an efficient and equitable manner, the Commission employs 

market-based technical solutions to maximize use of the spectrum. The FCC coordinates the management of 

the private sector radio spectrum with other Federal agencies also involved in spectrum management issues. 

The FCC also represents U.S. communications interests in coordination with the State Department in 

international fora and advocates U.S. positions abroad. 

Activity Goal: The FCC’s goal is to effectively manage the use of the Nation’s airwaves in the public 

interest for all non-Federal government users, including commercial, international businesses, and public 

safety users. This will be accomplished by creating more efficient spectrum markets and, where possible, 

increasing the amount of spectrum available. 

Summary: The FCC met or partially met its goals in four performance measures. 

***************

Goal D: Manage the Electromagnetic Spectrum in the Public Interest

Objective: Promote More Efficient Use of Spectrum

Policy Initiative: Streamline and reform assignment and licensing procedures to facilitate moving spectrum 

into the marketplace. Performance was measured by number of licenses issued and speed of service. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Initiate review of assignment and licensing 

techniques. 

FY01: 

3⁄4 Convene a task force to work with industry 

and academia to develop recommendations 

on ways to improve assignment and 

licensing. 

FY02: 

3⁄4 Clarify our transfer of control policies to 

facilitate secondary market transactions. 

FY03: 

3⁄4 Examine implementation of new spectrum 

efficient technologies. 

FY00: 

3⁄4 The FCC released two rule makings reconfiguring the 

30 MHz C-block re-auction spectrum into three 10 MHz 

blocks. 

FY01: 

3⁄4 Goal partially met. 

3⁄4 The FCC established the Technical Advisory Committee 

in 1999 with three working groups, including one on 

spectrum management. In February 2002, the new 

Chief of the Office of Engineering and Technology 

established a new task force on spectrum policy and 

created a new position, Senior Spectrum Policy Advisor. 

3⁄4 The FCC released a rule making adopting various 

technical and operational rules and policies concerning 

the use of frequencies in the 764-776 MHz and 794-806 

MHz bands (700 MHz band) designated for 

interoperability uses. FCC is also conducting an audit 

of the construction and operational status of the Private 

Land Mobile Radio (PLMR) licensees holding 

authorizations in the Public Safety and Business 

Industrial radio services on coordinated frequencies 

below 800 MHz. This study will identify opportunities 

for getting spectrum into the marketplace. 
 FY 2001 Annual Program Performance Report

- 28 -

Goal D: Manage the Electromagnetic Spectrum in the Public Interest

Objective: Promote More Efficient Use of Spectrum

Policy Initiative: Promote the use of more spectrum-efficient frequency technologies. Performance was 

measured by authorization of new spectrum efficient technologies and improved ability to measure and test 

RF emissions from radio equipment. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Work with industry and NTIA to promote the use of 

technologies and approaches to spectrum allocation.

FY01: 

3⁄4 Examine management of shared spectrum and 

vehicles to enhance condition of shared spectrum 

with NTIA. 

FY02: 

3⁄4 Examine implementation of new spectrum 

technology uses. 

FY03: 

3⁄4 Continue to examine implementation of new 

spectrum technology uses. 

3⁄4 Improve our capability to measure radio frequency 

equipment to minimize interference and improve 

consumer safety. (New goal)

FY99: 

3⁄4 Worked with the industry and NTIA to promote 

the use of technologies and approaches to 

spectrum allocation and assessments that 

minimize interference and increase coordination 

between Federal and non-Federal users. 

FY00: 

3⁄4 The FCC adopted rules to provide for 

government access to non-government public 

safety spectrum in the 700 MHz band. 

FY01: 

3⁄4 Goal met. 

3⁄4 The FCC continues to work with the 

Interdepartmental Radio Advisory Committee 

(IRAC), which is comprised of all Federal 

agencies involved with spectrum management. 

The FCC coordinates with NTIA (Department of 

Commerce) on all FCC proceedings dealing 

with spectrum issues, initiates review of the 

coordination process, and examines ways to 

improve coordination. 

3⁄4 Questions arose concerning shared spectrum and 

the robustness and redundancy of our public 

safety communications network, following 9/11. 

The FCC has established a Homeland Security 

Policy Council comprised of senior level 

officials. 
 FY 2001 Annual Program Performance Report

- 29 -

Goal D: Manage the Electromagnetic Spectrum in the Public Interest

Objective: Foster the Increased Availability of Spectrum

Policy Initiative: Spectrum auctions. Performance was measured by the number of auctions conducted by 

scheduled dates. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Conduct all congressionally mandated auctions 

scheduled in FY00. 

FY01: 

3⁄4 Conduct all auctions necessary to make spectrum 

available consistent with the FCC’s and Congress’ 

spectrum management goals. 

FY02: 

3⁄4 Same as FY01. 

FY03: 

3⁄4 Same as FY02. 

FY00: 

3⁄4 Congress postponed the deadline for Auction 31 

(Combinatorial Bidding). 

FY01: 

3⁄4 Goal partially met. 

3⁄4 The FCC completed six auctions during FY01, which 

provided the industry with much needed spectrum to 

meet increased consumer demands. 

3⁄4 No auctions for broadcast facilities were conducted this 

fiscal year, in view of the Court of Appeals ruling in 

National Public Radio v. FCC. In that proceeding, the 

Court ruled that Section 309(j)(2) of the 

Communications Act of 1934, as amended, exempts 

from auction non-commercial educational (NCE) 

applicants for commercial as well as non-commercial or 

“reserved” band licenses. Following the Court’s ruling, 

the FCC has been considering methods for handling 

auctions that involved “mixed” application groups; that 

is, groups with both commercial and non-commercial 

applicants. While that matter is under consideration all 

proposed auctions for broadcast facilities have been 

placed on hold. 
 FY 2001 Annual Program Performance Report

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Goal D: Manage the Electromagnetic Spectrum in the Public Interest

Objective: Foster the Increased Availability of Spectrum

Policy Initiative: New services. Performance was measured by the amount of spectrum made available for 

new technologies. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Initiate actions to promote the development of new 

services. 

3⁄4 Allocate 4 GHz of spectrum for unlicensed services. 

FY01: 

3⁄4 Increase the availability of flexibly allocated 

spectrum by 20% (baseline: FY00). 

3⁄4 Initiate 3G spectrum allocations. 

FY02: 

3⁄4 Increase the availability of flexibly allocated 

spectrum by an additional 20% (baseline: FY00). 

3⁄4 Implement 3G spectrum allocation and service 

rules. 

FY03: 

3⁄4 Continue to implement service rules to enable the 

deployment of advanced wireless services to 

consumers. 

3⁄4 Facilitate new communications services and 

technologies through preparation for and 

participation in the 2003 World Radiocommunications Conference. 

FY00: 

3⁄4 The FCC received a total of 100 applications to 

support the development of new technology 

applications in 7 services. 

3⁄4 FCC completed a Report and Order allocating 

spectrum for unlicensed services. 

FY01: 

3⁄4 Goal met. 

3⁄4 The FCC completed flexible spectrum allocations for 

27 MHz of spectrum transferred from Federal 

government use and 48 MHz of spectrum reallocated 

from television broadcast use as a result of the 

transition from analog to digital broadcasting. This 

spectrum will facilitate the deployment of new 

wireless communications services. The FCC also 

initiated a proceeding to allocate spectrum for 

advanced wireless communications and completed a 

proceeding to add flexibility to 190 MHz of spectrum 

at 2.5 GHz. 
 FY 2001 Annual Program Performance Report

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AGENCY-WIDE PERFORMANCE IMPROVEMENT INITIATIVES 

Activity Goal: The FCC’s goal is to promote the overall efficiency, effectiveness, and responsiveness of the 

agency by attracting and retaining qualified employees, improve the level of the agency’s expertise by 

developing continuing education programs in engineering and economics, and reviewing structural and 

procedural changes that will maximize our assets. 

Summary: The FCC met or exceeded its goals in all seven performance measures. 

*************** 

PERFORMANCE IMPROVEMENTS INITIATIVES 

Goal A: Create a More Efficient, Effective, and Responsive Agency

Objective: Reorganize to Create an Agency Infrastructure Conducive to Convergence

Policy Initiative: Reorganize for convergence. Performance was measured by whether planned phases were 

completed on schedule. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Develop plan for Phase 2 of reorganization: 

consider options for streamlining licensing 

processes. 

FY01: 

3⁄4 Develop plan for Phase 3 of reorganization. 

FY02: 

3⁄4 Evaluate restructuring initiatives. 

FY03: 

3⁄4 Continue implementation of restructuring 

initiatives. 

FY00: 

3⁄4 A licensing task force reviewed options for 

streamlining the licensing process and provided 

recommendations to the Chairman in March 2000. 

FY01: 

3⁄4 Goal exceeded. 

3⁄4 Work on the Reorganization Plan was completed in 

August 2001. The FCC adopted the Reorganization 

Order in December 2001 with implementation 

targeted for March 25, 2002. The FCC continues to 

reorganize along functional lines, promoting 

consistency and facilitating access to specific 

activities at the FCC. 
 FY 2001 Annual Program Performance Report

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Goal A: Create a More Efficient, Effective, and Responsive Agency

Objective: Preserve and Increase the Wealth of Knowledge and Expertise of FCC Staff

Policy Initiative: Increase training opportunities for employees in substantive areas and team-based project 

management. Performance was measured from data collected in the Quarterly Performance and Results 

Review. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Establish a training task force to address issues of 

continuing education. 

FY01: 

3⁄4 Establish two legal, technical, and managerial 

training modules. 

FY02: 

3⁄4 Establish one additional legal, technical, and 

managerial training module. 

FY03: 

3⁄4 Establish two additional legal, technical, and 

managerial training modules. 

FY00: 

3⁄4 Established a Digital Age Steering Committee and 

Training Group to address issues of continuing 

education. New training schedule developed in 

October 2000. 

FY01: 

3⁄4 Goal met. 

3⁄4 The FCC increased training opportunities for 

employees through the development of an FCC 

Training Plan. 

3⁄4 The FCC established the FCC University, which 

provides an extensive training and development 

program to ensure that FCC engineers, economists, 

and other professionals possess the expertise to 

formulate telecommunications policy in the 21st

Century. 

3⁄4 An Excellence in Engineering” Program was 

established for technical and non-technical 

employees. 

3⁄4 An Excellence in Economic Analysis Program was 

implemented, and we have conducted 12 seminars 

and two advanced mini-courses taught by world 

renowned economists. 
 FY 2001 Annual Program Performance Report

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Goal A: Create a More Efficient, Effective, and Responsive Agency

Objective: Preserve and Increase the Wealth of Knowledge and Expertise of FCC Staff

Policy Initiative: Strengthen technical capabilities by hiring more engineers/technologists and reestablishing entry-level engineering program. Performance was measured from data collected in the 

Quarterly Performance and Results Review. 

Policy Initiative: Pursue a number of alternative work schedules to attract and retain skilled employees. 

Performance was measured from data collected in the Quarterly Performance and Results Review. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Increase engineering staff by 5% over FY99 

baseline, including entry-level engineers. 

FY01: 

3⁄4 Increase engineering staff by 5% over FY99 

baseline. 

FY02: 

3⁄4 Increase engineering staff by 10% over FY99 

baseline. 

FY03: 

3⁄4 Increase engineering staff by 15% over FY99 

baseline. 

FY00: 

3⁄4 FCC exceeded 5% goal by hiring 15 engineers, 

including 5 entry-level recruits. 

FY01: 

3⁄4 The FCC exceeded 5% goal by hiring 29 engineers, 

including 12 entry-level recruits. The agency 

launched an aggressive “Engineer-in-Training 

Program.” This program is designed to improve the 

agency’s recruiting and retention position through 

accelerated promotions and an intensive, closely 

supervised, job-oriented program of instruction and 

evaluation. It allows the FCC to compete 

successfully in the industry for talented engineers and 

college students. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Implement telecommuting alternative. 

FY01: 

3⁄4 Implement at least 2 alternative work 

schedules; e.g., telecommuting, job-sharing, 

flexible work schedules. 

FY02: 

3⁄4 Identify additional options to attract, reward, 

and retain skilled employees. 

FY03: 

3⁄4 Implement additional options to attract, 

reward, and retain skilled employees. 

FY00: 

3⁄4 15% of FCC staff were telecommuting by the end of 

FY00. Flexible work schedules are available to all 

FCC employees. 

FY01: 

3⁄4 Goal exceeded. 

3⁄4 The FCC’s telecommuting program met its goals by 

increasing productivity, improving morale and job 

satisfaction and reducing absenteeism. In addition, 

the program had no negative impact on staff who 

worked at the office. The FCC also far exceeded 

legislative requirements by offering the program to 

an overwhelming majority of employees. During 

FY01, 16% of FCC employees telecommuted at least 

one day a week. 

3⁄4 The Term to Permanent Conversion process, which 

allows term employees to compete for permanent 

positions, was successfully completed in June 2001. 
 FY 2001 Annual Program Performance Report

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GOVERNMENT-WIDE PERFORMANCE-BASED INITIATIVES 

Goal A: Create a More Efficient, Effective, and Responsive Agency

Objective: Automate Agency Processes

Policy Initiative: Implement improved financial collections systems. Performance was measured by data 

collected in the Quarterly Performance and Results Review. 

Policy Initiative: Implement improved e-commerce procedures. Performance was measured by data 

collected in the Quarterly Performance and Results Review. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 Complete systems requirements and initiate a rule 

making to implement an FCC registration system. 

FY01: 

3⁄4 Complete rule making and implement registration 

system in time for annual regulatory fee collection 

cycle. 

FY02: 

3⁄4 Begin replacement of “publish and pay” system with 

the direct billing of licensees. 

3⁄4 25% of all licensees billed directly for regulatory fees. 

3⁄4 Modify collections system to allow for payment of 

fees for multiple licenses in a single transaction. 

3⁄4 15% of regulatory fees paid online. 

FY03: 

3⁄4 30% of all licensees billed directly for regulatory fees. 

3⁄4 25% of regulatory fees paid online. 

FY00: 

3⁄4 Systems requirements and draft rule making 

completed. 

FY01: 

3⁄4 Goal met.

3⁄4 The Report and Order, “Adoption of 

Mandatory FCC Registration Number (MD 

Docket #00-205)” was approved August 24, 

2001. An FRN became mandatory on 

December 3, 2001. Establishment of a 

registration number will greatly improve 

tracking and collection of all fees due to the 

FCC.

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 New goal. 

FY01: 

3⁄4 Complete review of e-commerce options in 

procurement. Prepare comprehensive plan for 

implementation. 

FY02: 

3⁄4 Make all FCC competitive solicitations available 

online at www.FedBizOpps.gov by October 2001 

implementation date.

FY00: 

3⁄4 Several solicitations posted on FCC web site. 

FY01: 

3⁄4 Goal met. 

3⁄4 The FCC is registered with FedBizOpps. An 

E-Commerce Team designed a web page for 

FCC’s Contracts and Purchasing Center 

(CPC) to post solicitations and other pertinent 

procurement information. The web page has 

links to allow access to Pre-Award Synopses 

and Solicitations. 
 FY 2001 Annual Program Performance Report

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Goal A: Create a More Efficient, Effective, and Responsive Agency

Objective: Automate Agency Processes

Policy Initiative: Implement performance-based contracting. Performance was measured by data collected 

in the Quarterly Performance and Results Review. 

Policy Initiative: A-76 Competitions/FAIR Act inventories. Performance will be measured by data 

collected in the Quarterly Performance and Results Review. 

Goal Actual Performance 

FY99: 

3⁄4 No FY99 goal. 

FY00: 

3⁄4 New goal. 

FY01: 

3⁄4 Conduct review to identify additional contracts with 

performance-based applications. 

FY02: 

3⁄4 Increase current number of performance-based 

contracts in excess of $25,000 by 20%. 

FY03: 

3⁄4 Increase current number of performance-based 

contracts in excess of $25,000 by 25%. 

FY00: 

3⁄4 9 performance-based contracts in place. 

FY01: 

3⁄4 Goal met. 

3⁄4 The FCC has established a Performancebased Contracts Training Program and has 

11 performance-based contracts in place. 

Goal Actual Performance 

FY99-01: 

3⁄4 No goals. 

FY02: 

3⁄4 Conduct a cost comparison of FTEs based on the FY00 

FAIR Act Inventory. 

FY03: 

3⁄4 Outsource 10% of FY 2000 inventory. 
 FY 2001 Annual Program Performance Report

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Program Evaluations 

The FCC did not complete any formal evaluations during the fiscal year. However, we did initiate a twoyear project to analyze common information management and desktop computing applications to determine 

where the implementation of new technologies could streamline our work processes. Beginning in FY 1999, 

the FCC’s Office of Inspector General (OIG) has completed a comprehensive audit of FCC financial 

documents. In FY 2000, the second year the FCC completed an Annual Financial Accountability Report, the 

agency received a clean opinion. This is a notable milestone to reach in two years. Beginning in FY 2002, 

the OIG will expand the scope of its annual audit to include an evaluation of the agency’s strategic planning 

efforts. 

At the request of Congress, the FCC prepares the “Annual State of Competition Reports” for cable television, 

wireless, the local telephony markets, and for advanced telecommunications services. These reports track the 

growth of technology use and competition in these four large service areas. In addition, and again, at the 

request of Congress, the General Accounting Office (GAO) has embarked on an ambitious series of audits 

and reports on telecommunications topics. In FY 2001, GAO initiated or completed studies of FCC activities 

in the following areas (among others): Universal Service, the Universal Fund for Schools and Libraries (2 

studies), the Federal Government’s Management of Spectrum, the Cost and Impact of DOD Reallocation of 

Radio Frequencies to Support 3rd Generation Mobile Wireless Uses, the Transition to Digital Broadcast 

Television, Competition in the Internet Backbone Service Market, and the Health Effects of Radiofrequency 

Radiation Emitted by Cellular Telephones. Where applicable, the FCC adopts GAO recommendations and 

revises our rules and regulations accordingly. Finally, every two years, the FCC undertakes a comprehensive 

review of our rules and regulations. The next biennial review will be conducted in 2002. 
 FY 2001 Annual Program Performance Report

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Conclusion 

During FY 2001, the FCC demonstrated a continued commitment to its strategic goals of promoting 

competition, innovation, deregulation, and the availability of high-quality communications services to the 

public. While the FCC has made tremendous strides in attaining our goals, we now need to refocus our 

strategic planning efforts. Our new strategic plan, which will be submitted to OMB and Congress this fall, 

will focus on strategic priorities: 

Broadband Deployment: Promote the efficient, widespread deployment of the broadband 

technologies, and facilitate broadband’s ubiquitous availability to all Americans; 

Competition Policy: Enforce our rules that serve to promote competition, simplify 

performance levels and standards to both clarify obligations and to allow for a mechanism 

for swift enforcement when those levels and standards are compromised; 

Spectrum Policy: Ensures that our spectrum management policies result in the broadest 

public benefits and meet our most urgent public needs; 

Media Ownership Foundation: Develop a solid factual and analytical foundation for 

media ownership regulation to meet the goals of diversity, localism, and competition in the 

media marketplace; 

Digital Television Transition (DTV): Review and facilitate the transition to DTV and 

promote the rapid recovery of broadcast spectrum for other uses; 

Homeland Security: Evaluate and strengthen measures for protecting U.S. 

telecommunications infrastructure and facilities from further terrorist attacks. 

Our ability to meet our strategic objectives will be based on a sound business plan that focuses on: 

9 Emphasizing performance results and management reform; 

9 Developing and retaining independent technical and economic expertise; and 

9 Aligning the FCC with the dynamic and converging marketplace. 

The Commission’s policy emphasis has a new sense of purpose since September 11th and a critical 

importance to be more responsive, efficient and effective, capable of managing the technological and 

economic opportunities and challenges presented to us. In FY 2002, the FCC will continue its important 

work in ensuring a dynamic regulatory environment that facilitates competition in all communications 

markets and the development and deployment of new technologies and services for all Americans. As 

always, the Commission’s efforts will be guided by its commitment to protect consumer welfare and the 

public interest. 
 FY 2001 Annual Program Performance Report

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Appendix A 

FCC’s Organizational Structure 

The FCC Chairman leads the Commission and coordinates the activities of the Commissioners. The 

Chairman delegates management and administrative responsibility to the Managing Director. The 

Commissioners supervise all FCC activities, delegating responsibilities to staff units and bureaus. The 

Commission staff is organized by function into bureaus and staff offices. In FY 2001, there were seven 

operating bureaus: Cable Services, Common Carrier, Consumer Information, Enforcement, International, 

Mass Media, and Wireless Telecommunications. These bureaus were responsible for developing and 

implementing regulatory programs, processing applications for licenses or other filings, analyzing 

complaints, conducting investigations, and taking part in FCC hearings. There were also staff offices: 

Administrative Law Judges, Communications Business Opportunities, Engineering and Technology, General 

Counsel, Inspector General, Legislative and Intergovernmental Affairs, Managing Director, Media Relations, 

Plans and Policy, and Workplace Diversity. Even though the bureaus and offices have individual functions, 

they regularly join forces and share expertise in addressing Commission issues. 

Note: The FCC’s major reorganization plan, submitted to Congress for review in January, will become 

effective March 25, 2002. 

FCC Bureaus (FY 2001) 

Cable Services Bureau (CSB) – serves as the single point-of-contact for consumers, community 

officials, and the industry for cable-related issues. 

Common Carrier Bureau (CCB) – is responsible for rules and policies concerning telephone 

companies that provide interstate, and, under certain circumstances, intrastate telecommunications 

services to the public through the use of wire-based transmission facilities (i.e., corded/cordless 

telephones) and radio communications. 

Consumer Information Bureau (CIB) – communicates information to the public regarding 

Commission policies, programs, and activities. The Consumer Information Bureau handles public 

inquiries and informal consumer complaints. It is also charged with overseeing disability mandates. 

Enforcement Bureau (EB) – enforces the Communications Act, as well as the Commission’s rules, 

orders, and authorizations. It consolidates enforcement functions from other areas of the FCC. 

International Bureau (IB) – regulates and licenses international telecommunication and satellite 

services and represents the Commission in international communications matters (such as technical 

standards, spectrum allocations, and development issues). 

Mass Media Bureau (MMB) – regulates AM/FM radio and television broadcast stations, as well as 

Multipoint Distribution (i.e., cable and satellite) and Instructional Television Fixed Services. This 

bureau also assigns frequencies and call letters to stations and designates operating power times. 

Wireless Telecommunications Bureau (WTB) – oversees all domestic wireless telecommunications 

programs (except satellite), including cellular and PCS phones, pagers and two-way radios. This 

bureau also regulates the use of radio spectrum to fulfill the communications needs of businesses, 

local and state governments, public safety service providers, aircraft and ship operators, and 

individuals. 
 FY 2001 Annual Program Performance Report

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FCC Offices (FY 2001) 

Office of Administrative Law Judges (OALJ) – presides over hearings and issues Initial Decisions. 

Office of Communications Business Opportunities (OCBO) – provides advice to the Commission on 

issues and policies concerning opportunities for ownership and contracting by small, minority, and 

women-owned communications businesses. 

Office of Engineering and Technology (OET) – allocates spectrum for non-governmental use and 

provides expert advice on technical issues before the Commission. OET makes recommendations on 

how spectrum should be allocated, and establishes technical standards for spectrum users. 

Office of the General Counsel (OGC) – serves as chief legal advisor to the Commission and its 

various bureaus and offices. OGC advises the Commission on fostering competition and promoting 

deregulation in a competitive environment. 

Office of Inspector General (OIG) – conducts and supervises audits and investigations relating to the 

operations of the Commission. This office recommends policies for activities designed to promote 

economy, efficiency, and effectiveness, as well as to prevent and detect fraud and abuse. 

Office of Legislative and Intergovernmental Affairs (OLIA) – is the Commission’s main point of 

contact with Congress and other governmental entities. 

Office of the Managing Director (OMD) – functions as a chief operating official, serving under the 

direction and supervision of the FCC’s Chairman. Provides direction to the bureaus and staff offices 

in management and administrative matters. 

Office of Media Relations (OMR) – informs the news media of FCC decisions and serves as the 

Commission’s main point of contact with the media. This office also manages the FCC’s web site. 

Office of Plans and Policy (OPP) – serves as the Commission’s chief economic policy advisor, 

analyzing issues and developing long-term policy planning. 

Office of Workplace Diversity (OWD) – advises the Commission on all issues related to workforce 

diversity, affirmative recruitment, and equal employment opportunity. 
 FY 2001 Annual Program Performance Report

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Appendix B 

Glossary of Acronyms and Special Terms Used in This Report 

3G – an acronym for Third Generation Wireless telecommunication devices. Key features of 3G 

systems are a high degree of commonality of design worldwide, compatibility of services, use of small 

pocket terminals with worldwide roaming capability, Internet and other multimedia applications, and a 

wide range of services and terminals. 3G system services are scheduled to be initiated in 2002, subject 

to market considerations. 

Accelerated docket – the Accelerated Docket is available for selected formal complaints between 

common carriers (Section 208 complaints, see Title 47 CFR 1.730). Because this procedure may lead 

to a “mini-trial” with testimony by witnesses subject to cross-examination, it is particularly well suited 

for cases involving difficult factual disputes. It is designed to lead to a written staff-level decision 

within 60 days from the filing of the complaint. Because the Accelerated Docket rules require staffsupervised pre-filing settlement discussions between the parties, many disputes are settled without the 

need to file a formal complaint. Such settlements are a real success story of the Accelerated Docket 

procedure. 

Advanced cable – as used in this report, this term means a cable modem. 

Advanced technologies – as used by the FCC, this term means new technologies that provides the 

opportunity for interactive communication over the Internet. 

Analog – the traditional method by which either radio or television signals are send through the 

atmosphere. Analog signals use continuous changes (waves) in the amplitude or frequency of a 

transmission to convey information. Analog transmissions are slowly being replaced by digital 

transmissions. 

Auction – since 1994, the FCC has used auctions as a fair way to select among competing license 

applications for spectrum. These auctions, whose billions of dollars of proceeds go to the federal 

treasury, are open to any qualified bidder - company or individual - that submits an application and 

upfront payment. More information can be found on the internet at: http://wireless.fcc.gov/auctions. 

Broadband – a still-evolving term used to generally describe the receipt of Internet services at high 

rates of speed (beyond the typical 56 or 33.6 modem/dial-up access). Today, broadband capability is 

typically provided to households and small business through several technologies, including cable 

modems, satellites, and ISDN lines. Larger businesses sometimes have direct wired broadband 

connections to the Internet called T1 lines. 

C-Block – the term used to describe a part of the spectrum dedicated to a specific purpose – such as 

Personal Communications Services (PCS). Each frequency band (measured in GHz) is divided into 

blocks. Within blocks, a further subdivision is made by specific frequencies (measured in MHz). 

 

Cellular – as used in this report this term broadly equates to a wireless phone, regardless of the actual 

underlying technology. 

CFR – Code of Federal Regulations. This listing of all the rules and regulations of the federal 

government is available on the Internet at http://www.access.gpo.gov/nara/cfr. 

CLEC – competitive local exchange carrier. See Unbundling. 
 FY 2001 Annual Program Performance Report

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CMRS – Commercial Mobile Radio Service. CMRS is a formal regulatory classification established 

by Congress in 1993 as part of their effort to encourage competition in the provision of wireless 

services to consumers. CMRS includes wireless services such as paging, cellular phones, and 

telemetry and telematics. 

Common carriers – telephone companies that provide long distance and local service to consumers. 

These companies provide services such as voice, data, and other telecommunication transmission 

services to consumers. 

Consent decree – a judicially-approved agreement that typically requires a defendant to stop activities 

alleged by the FCC to be in violation of laws or regulations (such as slamming) in return for an end to 

the charges. 

Cramming – an improper practice whereby customers are billed for features such as voice mail, callerID, and call-waiting that they have not ordered. 

DBS – direct broadcast satellite. A method of receiving and transmitting signals (radio, television, 

Internet access) from a high-powered satellite to a small earth station or dish mounted on homes or 

other buildings. 

Digital specialized mobile radio (SMR) – another technology underlying today’s wireless 

communications. A traditional SMR system consists of a base station, antennas, and end user radio 

equipment. SMR end users may operate in either an "interconnected" mode or a "dispatch" mode. 

“Interconnected” routes the call from the end user to the base station and then to another unit via the 

local phone network. This allows the mobile radio unit to function as a mobile telephone. “Dispatch” 

mode allows two-way, over the air, voice communications between two or more mobile units (e.g., 

between a car and a truck) or between mobile units and fixed units (e.g., between the end user's office 

and a truck). The development of a digital, rather than analog, SMR marketplace is allowing new 

features and services, such as two-way acknowledgment paging and inventory tracking, credit card 

authorization, automatic vehicle location, fleet management, inventory tracking, remote database 

access, and voicemail. Typical SMR customers include construction or delivery companies with 

several trucks at different jobs or on the road and a centralized dispatch operation. 

DTV – digital television. This is a relatively new technology for transmitting and receiving radio or 

television signals through the atmosphere (signal is on/off as opposed to the continuous waves of 

analog). Most experts believe that DTV provides clearer picture resolution and improved sound 

quality. 

Emergency Alert System – the system used on radios and television to alert Americans to the presence 

of an emergency condition. Most radio and television listeners know the EAS (known as the 

Emergency Broadcast System until 1997) by the words, "This is a test of the Emergency Alert System 

-- this is only a test...." 

Ex parte – in order to assure fairness in its decision making the FCC has strict rules that regulate 

impermissible off-the-record-communications between decision-makers and others. These rules – 

dependant on the type of procedure in front of the FCC - range from no restrictions to prohibition of ex 

parte presentations to requirements that summaries of such presentations be placed in the record. The 

ex parte rules can be found in Title 47 CFR 1.1200-1216. 

Frequency – radio and television stations, CB and shortwave radio operators, Weather Service 

satellites, Coast Guard ships, cell phone operators, airplane pilots, police and fire dispatchers, and 

NASA astronauts are just a few of the users routinely communicating via the United States’ allocated 

radio spectrum or, as it is more generally known, the “public airwaves.” Since the “airwaves” belong 
 FY 2001 Annual Program Performance Report

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to the public, the FCC is one of several international bodies charged with fairly allocating parts of the 

spectrum to varied types of users. Frequencies are one parts of the spectrum that are measured by the 

number of electromagnetic waves that pass a given point in a given time period. It is equal to the 

speed of light divided by wavelengths, and is expressed in Hertz (cycles per second) such as GHz and 

MHz. Each user of the spectrum is assigned to a specific frequency (and often a power level) so that 

the maximum number of users can communicate without interference. Listings of frequencies can be 

found at the following internet pages: http://ftp.fcc.gov/oet/info/database or 

http://www.ntia.doc.gov/osmhome/allochrt.pdf

FTE – full time equivalent. This is the term the federal government uses to indicate 2080 hours (1 

year) of work. Two or more people working part time might equal 1 FTE or 1 person working full 

time would equal 1 FTE. Congress annual allocates both the budget and FTE ceiling for federal 

agencies. 

GHz – gigahertz. As used in this report, GHz identifies a collection or band of frequencies dedicated to 

a specific purpose. For instance, the 39 GHz band has been allocated for PCS devices. A GHz band is 

typically divided into several blocks (A Block, B Block, etc.). Within each block there is a further 

subdivision into channels. Channels are then broken down into specific frequencies, which are 

measured in MHz. 

ILEC/LEC – incumbent local exchange carrier or local exchange carrier. See Unbundling. 

In-band On-channel service – as used in this report the term means a digital radio service. 

Information Collection Budget – under the Paperwork Reduction Act (1995) each federal agency is 

given a “budget” for how much paperwork they can impose upon the American public and businesses. 

This “budget” is to be reduced each year. 

ITU – International Telecommunications Union. The ITU is part of the United Nations and has the 

mission of helping governments and the private sector coordinate global telecom networks and 

services. 

Ka-Band – a type of satellite system. A Ka-band satellite (also known as “28 GHz band”) generally 

refers to space-to-Earth (downlink) frequencies at 17.7-20.2 GHz and Earth-to-space (uplink) 

frequencies at 27.5-30.0 GHz. 

Ku-Band – a type of fixed position satellite system (Very Small Aperture Terminal or VSAT 

networks) operating at 12/14 GHz. 

Lifeline services – one of the programs the FCC operates in order to ensure that eligible low-income 

consumers have access to telecommunications services through monthly reductions in service charges. 

Memorandum Opinion and Order – in response to a Petition for Reconsideration, the FCC may issue a 

Memorandum Opinion and Order (MO&O) or an Order on Reconsideration amending the new rules or 

stating that the rules will not be changed. 

MHz – megahertz. As used in this report, MHz is a specific frequency measurement range dedicated 

to specific purposes. For instance, within the 39 GHz band there are two blocks (A-Block, B-Block) 

with 14 channels in each block. Each of these channels is assigned a specific frequency band, which is 

measured in MHz. 

MMDS – Multichannel Multipoint Distribution Services are a wireless way (omni-directional 

microwave signals to rooftop dishes) to deliver video programs to subscribers. This is one of the 
 FY 2001 Annual Program Performance Report

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technologies the FCC follows to determine whether a particular market has multichannel video 

programming services. 

Multi-channel market – a marketplace in which consumers can access video programming (such as 

television shows) through a variety of media (such as digital broadcasts, cable access, or satellite 

reception). 

Multichannel video programming – describes the delivery of video programming through differing, 

competitive technologies. The FCC provides Congress with an annual report on the “Status of 

Competition in the Market for the Delivery of Video Programming.” The most recent report (1/2002) 

finds that “cable television still is the dominant technology for the delivery of video programming to 

consumers in the MVPD marketplace, although its market share continues to decline (from 80% to 

78% in the past year). A total of 88.3 million households subscribe to multichannel video 

programming services as of June 2001, up 4.6 percent over the 84.4 million households subscribing to 

MVPDs in June 2000.” 

MVPD – Multichannel video programming distributor 

Notice of Proposed Rulemaking – the FCC issues a Notice of Proposed Rulemaking to propose 

changes to the Commission’s rules and to seek public comment on these proposals. 

NPRM – see Notice of Proposed Rulemaking. 

NTIA – National Telecommunications and Information Administration. Part of the Department of 

Commerce, NTIA shares the federal responsibility with the FCC for allocating the Nation’s spectrum. 

The NTIA is responsible for that part of the spectrum allocated to Federal government agencies. The 

FCC is responsible for the portion of the spectrum allocated to private citizens, organizations, and 

public safety uses. 

Number block pooling – one of several initiatives the FCC and states have undertaken to prevent the 

United States from running out of telephone numbers. 

Numbering resource optimization – in order to keep up with the ever growing demand for telephone 

numbers the FCC is working with states to eliminate the current inefficiencies in the allocation and 

utilization of telephone numbers. 

Part 68 Order – on December 21, 2000, the Commission adopted the Part 68 Streamlining Order

which amended the Commission’s rules governing the connection of terminal equipment to the public 

switched telephone network in an effort to privatize and streamline the standards development and 

approval processes. 

PCS devices – Personal Communication Service devices include small, lightweight, multifunction 

portable phones; portable fax machines; and advanced devices with two-way data capabilities. PCS 

devices (Sprint is one of the companies that use PCS technology for its cellular phones) compete 

interchangeably with other technologies that also provide land mobile services and often are 

generically included in the broad category of cellular phones. 

Petition for reconsideration – if you are not satisfied with the way an issue is resolved in a Report and 

Order, you can file a Petition for Reconsideration within 30 days from the date the Report and Order 

appears in the Federal Register. 

Public Notice – a Public Notice is issued by the Commission or on Delegated Authority to notify the 

public of an action taken or an upcoming event. The Notice differs from a News Release in that the 
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Public Notice is an official document and, usually, no document or full text will be released following 

the Notice. 

Public safety services – The FCC regulates the licensing and use of radio transmitters by state and 

local government and non-governmental entities engaged in public safety activities. For more on the 

FCC’s public safety activities go to: http://wireless.fcc.gov/publicsafety. 

Report and order – After considering comments to a Notice of Proposed Rulemaking (or Further 

Notice of Proposed Rulemaking), the FCC issues a Report and Order. The R&O may develop new 

rules, amend existing rules or make a decision not to do so. Summaries of the R&O are published in 

the Federal Register. The Federal Register summary will tell you when a rule change will become 

effective. 

Rule making proceedings – as an independent regulatory agency, the FCC conducts most of its 

business formally through rule making proceedings. To learn more about this process go to: 

http://wireless.fcc.gov/csinfo/ruleprocess.html. 

Section 255 – this refers to Section 255 of the Telecommunications Act (1996), which requires 

telecommunications manufacturers and service providers to make their products and services 

accessible to people with disabilities. 

Section 271 – this refers to Section 271 of the Communications Act of 1934, as amended, which 

mandates that former Bell Operating Companies file applications with the FCC on a state-by-state 

basis to provide in-region interLATA (local access and transport area) services. 

Slamming – an improper practice that occurs when a customer’s long distance service is switched from 

one long distance company to another without the customer’s permission. 

SMATV – satellite master antenna television. This is another competitive way for consumers to 

receive video programming such as television programs. 

SMR – see digital specialized mobile radio. 

Spectrum – the range of electromagnetic radio frequencies used in the transmission of sound, data, and 

television. Under current practice the FCC and NTIA allocate the spectrum by types of use (television 

stations, radio stations, satellites, wireless telephones, government uses, etc). Because there is a finite 

amount of spectrum; while, simultaneously, there are a growing number of uses for spectrum, 

effectively managing the available spectrum is a strategic issue for the FCC and the NTIA. 

Speed of disposal – the time it takes to make a decision on a license application. 

Telecommunications Act of 1996 – the Telecommunications Act of 1996 was the first major overhaul 

of telecommunications law in almost 62 years. The goal of this law was to let any communications 

business compete in any market against any other. Under this Act the FCC has the responsibility to 

create fair rules to encourage competition in the public interest. 

Telecommunications Certification Body (TCB) – one of the FCC’s responsibilities is to certify that 

certain types of telecommunication’s equipment will operate within the frequencies assigned for that 

purpose. There are several organizations and individuals who are accredited by the FCC to provide 

these certifications. 
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Telemetry and telematics – technologies that involve the use of wireless technology to transfer data 

between systems and devices. Wireless telemetry is the monitoring of mobile or fixed equipment in a 

remote location. The most common example of wireless telemetry is the remote monitoring of utility 

meters by utility and energy companies, called automatic meter reading (“AMR”). With telematics 

systems, a person in a remote location can access information using various wireless technologies. 

Telematics is most often used to describe vehicle navigation systems, such as OnStar, where drivers 

and passengers employ GPS technology to obtain directions, track their location, and obtain assistance 

when a vehicle is in an accident. 

Telephony – the science of transmitting voice over a telecommunications network. 

Unbundling – a requirement of the Telecommunications Act designed to provide competition in local 

telephone markets. This practice requires the owners of the actual under or above ground telephone 

lines (ILEC’s) to allow competitors (CLEC’s) to purchase access on those lines. In this way, CLEC’s 

can offer consumers competitive telephone services without actually have to invest in the physical act 

of stringing wire or cable themselves. 

UNE – Unbundled Network Elements. See Unbundling. 

Universal Service – just as establishing the nationwide mail delivery system was one of the first acts of 

the federal government in the 1800’s; so, today, having universal access to telephone service is 

considered an essential element of the social good. But, unlike the US Postal Service, instead of 

establishing a federal telephone office, the Congress has required telephone companies and other 

communication entities to contribute to a fund that ensures reasonable, affordable access to telephone 

service for all Americans. As allowed by law, companies typically pass on the cost of their 

contribution to their customers. 

Unlicensed services – within Part 15 of the FCC’s rules, certain types of equipment can operate at 

prespecified frequencies without getting individual licenses. These are often consumer devices or low 

power, short-range devices. 

V-Band – the portion of the spectrum from 36.0-51.4 GHz.