FY 2003 Annual Program Performance Report Page 1

TABLE OF CONTENTS 

 Page 

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

FCC’s Organizational Structure...................................................................................... 2 

FY 2003 Strategic and Performance Goals 

Broadband 

 FY 2003 Outcome Indicators....................................................................................... 4 

 FY 2003 Output Activities........................................................................................... 5 

Competition 

 FY 2003 Outcome Indicators....................................................................................... 8 

 FY 2003 Output Activities......................................................................................... 11 

Spectrum 

 FY 2003 Outcome Indicators..................................................................................... 13 

 FY 2003 Output Activities......................................................................................... 16 

Media 

 FY 2003 Outcome Indicators..................................................................................... 18 

 FY 2003 Output Activities......................................................................................... 20 

Homeland Security 

 FY 2003 Outcome Indicators..................................................................................... 22 

 FY 2003 Output Activities......................................................................................... 24 

Modernize the FCC 

 FY 2003 Outcome Indicators..................................................................................... 26 

 FY 2003 Output Activities......................................................................................... 29 

Program Evaluations....................................................................................................... 31 

Conclusion ........................................................................................................................ 32 

FY 2004 – 2005 Performance Goals, Outcome Indicators, and Output Activities.... 33 

Appendix 

FY 1999 – 2002 Performance 

 Licensing..................................................................................................................A-1

 Competition..............................................................................................................A-3 

 Enforcement ...........................................................................................................A-12 

 Consumer Information Services.............................................................................A-15 

 Spectrum Management...........................................................................................A-19 

 Agency-wide Performance Improvement Initiatives .............................................A-23 
FY 2003 Annual Program Performance Report Page 2

Executive Summary 

As required by the Government Performance and Results Act of 1993, 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 achieve our goals. 

In October 2002, the Commission issued a completely revised Strategic Plan for FY 2003-2008. The new 

strategic plan is based on six strategic goals that replaced the previous five core activities. Each strategic goal 

captures both project-type output activities the Commission pursues in order to achieve the long-term outcome 

indicators (trend data for FY 2003-2008). Implementing the new Strategic Plan in FY 2003 and a new cost 

accounting system in FY 2004 is beginning to allow for the implementation of performance-based budgeting in 

FY 2005. 

The FY 2003 Annual Program Performance Report is based on the following strategic and performance goals: 

Broadband: Broaden the deployment of broadband technologies across the United 

States and globally. 

Competition: Ensure American consumers can choose among multiple reliable and 

affordable communications services. 

Ensure that all American consumers retain reliable wireless and wireline 

phone services. 

 Create and maintain a two-way dialogue with regulators around the globe 

in order to foster the creation of pro-competitive global markets. 

 Create and maintain a two-way dialogue with American consumers so 

that they are informed about their rights and responsibilities. 

Spectrum: Ensure that the Nation’s spectrum is used efficiently and effectively. 

Advocate U.S. spectrum interests in the international arena. 

Media: Develop a sound analytic foundation for media ownership rules. 

Facilitate the Congressionally-mandated transition to digital television 

and further the transition to digital radio. 

Homeland Security: Promote the reliability, security, and survivability of the communications 

infrastructure. 

Modernize the FCC: Become a more responsive, efficient, and effective agency capable of 

facing the technological and economic opportunities of the new 

millennium. 

In FY 2003, the Commission met or exceeded 92% (22 of 24) of its outcome indicators, and did not meet 8% (2) 

of its indicators. Fiscal Year 2003 data was not available for 3 indicators and these were not included in our 

calculations. Achievement of the outcome indicators was measured by accomplishment of output activities. 

Although actions we take (output activities) are likely to influence the marketplace, they cannot control the 

marketplace. The Commission generally controls the output activities, which in turn influence the outcome 

indicators. We measure our progress by whether we accomplish our output activities and the corresponding 

increase or decrease in the measurement of our outcome indicators. The external factors that may affect our 

reaching our objective are economic, legal and organizational. These factors are highlighted in our Strategic 

Plan on pages 8-9. 
FY 2003 Annual Program Performance Report Page 3

FCC’s Organizational Structure 

The FCC is an independent Federal agency established by the Communications Act of 1934 and is charged with 

regulating interstate and international communications by radio, television, wire, satellite, and cable. 

The FCC is directed by five Commissioners appointed by the President and confirmed by the Senate for 5-year 

terms, except when filling an unexpired term. The President designates one of the Commissioners to serve as 

Chair. Only three Commissioners may be members of the same political party. The Chairman and other 

Commissioners oversee FCC activities, delegating selected responsibilities to the bureaus and staff offices. 

The FCC consists of six operating bureaus and 10 staff offices. The bureaus’ responsibilities include: 

processing applications for licenses and other filings; analyzing complaints; conducting investigations and taking 

action; developing and implementing regulatory programs; and taking part in hearings. Our offices provide 

support services. Even though the bureaus and offices have their individual functions, they regularly join forces 

and share expertise in addressing Commission issues. 

FCC Bureaus 

Consumer and Governmental Affairs Bureau (CGB) – educates and informs consumers about 

telecommunications laws and regulations and solicits their input to help guide the work of the 

Commission. CGB coordinates telecommunications policy efforts with industry and with other 

governmental agencies – federal, tribal, state and local – in serving the public interest. 

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

orders, and authorizations. EB supports the Commission’s homeland security and emergency 

preparedness initiatives. 

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). 

Media Bureau (MB) – develops, recommends and administers the policy and licensing programs for 

the regulation of media, cable television, broadcast television and radio, and satellite services in the 

United States and its territories. 

Wireless Telecommunications Bureau (WTB) – handles all Commission domestic wireless 

telecommunications programs and policies (except those involving satellite communications or 

broadcasting), cellular and PCS phones, pagers and two-way radios. WTB 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 and plans and administers all 

Commission spectrum auctions. 

Wireline Competition Bureau (WCB) – 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). 

FCC Offices

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 business. 

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 established technical standards for spectrum users. 
FY 2003 Annual Program Performance Report Page 4

Office of 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. OIG recommends policies for activities designed to promote economy, 

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

Office of Legislative Affairs (OLA) – 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 Commission decisions and serves as the 

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

site. 

Office of Strategic Planning and Policy Analysis (OSP) – develops and implements strategic plan 

identifying short- and long-term policy objectives for the agency and provides expert policy guidance and 

analysis concerning cross-cutting communications issues. 

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

diversity, affirmative recruitment, and equal employment opportunity. 

COMMISSIONERS

Michael K. Powell, Chairman

Kathleen Abernathy

Michael Copps

Kevin J. Martin

Jonathan Adelstein

OFFICE OF INSPECTOR

GENERAL

OFFICE OF MEDIA

RELATIONS

Media Services Staff

Internet Services Staff

Audio-Visual Services Staff

OFFICE OF ENGINEERING

AND TECHNOLOGY

Electromagnetic Compatibility

 Division

Laboratory Division

Network Technology Division

Policy & Rules Division

Administrative Staff

OFFICE OF GENERAL

COUNSEL

Administrative Law Division

Litigation Division

OFFICE OF MANAGING

DIRECTOR

Human Resources Management

Information Technology Center

Financial Operations

Administrative Operations

Performance Evaluation &

 Records Management

Secretary

OFFICE OF

ADMINISTRATIVE LAW

JUDGES

OFFICE OF STRATEGIC

PLANNING AND POLICY

ANALYSIS

OFFICE OF

COMMUNICATIONS

BUSINESS OPPORTUNITIES

OFFICE OF WORKPLACE

DIVERSITY

OFFICE OF LEGISLATIVE

AFFAIRS

WIRELINE COMPETITION

BUREAU

Administration & Management

 Office

Competition Policy Division

Pricing Policy Division

Telecommunications Access

 Policy Division

Industry Analysis &

 Technology Division

ENFORCEMENT BUREAU

Office of Management &

 Resources

Office of Homeland Security

Telecommunications

 Consumers Division

Spectrum Enforcement

 Division

Market Disputes Resolution

 Division

Investigations & Hearings

 Division

Regional and Field Offices

WIRELESS

TELECOMMUNICATIONS

BUREAU

Management & Planning Staff

Auctions & Industry Analysis

 Division

Commercial Wireless Division

Public Safety & Private

 Wireless Division

Policy Division

Data Management Division

MEDIA BUREAU

Management & Resources Staff

Office of Communications &

 Industry Information

Policy Division

Industry Analysis Division

Engineering Division

Office of Broadcast License

 Policy

 Audio Division

 Video Division

CONSUMER AND

GOVERNMENTAL AFFAIRS

BUREAU

Administrative & Management

 Office

Systems Support Office

Information Access & Privacy

 Office

Consumer Inquiries &

 Complaints Division

Policy Division

Disability Rights Office

Consumer Affairs & Outreach

 Division

Reference Information Center

INTERNATIONAL BUREAU

Management & Administrative

 Staff

Policy Division

Satellite Division

Strategic Analysis &

 Negotiations Division

Federal Communications Commission

Fiscal Year 2003

Revised 7/31/03
FY 2003 Annual Program Performance Report Page 5

Strategic Goal: Establish regulatory policies that promote competition, innovation, and investment in 

broadband services and facilities while monitoring progress toward the deployment of 

broadband services in the United States and abroad. 

Performance Goal: 

 Broaden the deployment of broadband technologies across the United States and globally. 

FY 2003 Outcome Indicators: 

3⁄4 Increasing percentage of households with access to broadband services. 

3⁄4 Increasing access to broadband services and devices across multiple platforms: DSL, cable 

modem, satellite, etc. 

~~ FY 2003 Outcome Indicators ~~ 

3⁄4 Increasing access to broadband services. 

 At the end of June 2003, subscribers to high-speed services were present in 91% of the zip codes in the 

United States for a total of 23.5 million high-speed lines. High-speed lines deliver services at speeds exceeding 

200 kilobits per second (kbps) in at least one direction, while advanced services lines deliver services at speeds 

exceeding 200 kbps in both directions. Reporting of state-level data is required for providers with at least 250 

high-speed connections in service in a state. Of the 23.5 million high-speed lines in service at the end of June 

2003, 20.6 million were residential and small business, a 19% increase from six months earlier. A total of 16.3 

million lines provided advanced services, a 32% increase from the end of 2002. 

BROADBAND

Percentage of Zip Codes with 

High-Speed Services

79%

84% 88% 91%

0%

20%

40%

60%

80%

100%

2001 December 2002 June 2002 December 2003 June
FY 2003 Annual Program Performance Report Page 6

3⁄4 Increasing access to broadband services across multiple platforms: DSL, cable 

modem, satellite, etc. 

 High-speed asymmetric digital subscriber lines (ADSL) in service increased by 19% during the first half of 

2003, from 6.5 million to 7.7 million lines, compared to a 27% increase, from 5.1 million to 6.5 million lines, 

during the preceding six months. For the full year, subscription to high-speed ADSL increased by 50%. 

 Subscription to cable modem high-speed services increased by 20% during the first six months of 2003, from 

11.4 million to 13.7 million lines, compared to a 24% increase, from 9.2 million to 11.4 million lines, during the 

second half of 2002. For the full year, high-speed cable modem connections increased by 49%. 

 The FCC continues to take steps to remove barriers to deployment, encourage investment in technologies that 

deliver advanced services, and vigorously promote competition in the marketplace. 

******** 

~~ FY 2003 Output Activities ~~

FY 2003 Output Activities FY 2003 Accomplishments 

9 Complete rulemakings that influence the 

deployment and adoption of broadband 

technologies: 

 National Performance Standards 

Measure NPRM 

 The Incumbent Local Exchange Carrier 

(ILEC) Broadband Notice 

3⁄4 The FCC adopted five proceedings that will build the foundation 

for a comprehensive and consistent national broadband policy that 

will promote greater investment in the nation’s broadband 

infrastructure. 

» In November 2001, the Commission adopted two Notice of 

Proposed Rulemakings seeking comment on whether national 

performance measures would be appropriate for special access 

services and unbundled network elements. The Chairman has 

since concluded that the agency’s limited resources are best 

spent on other proceedings at this time. Thus, these 

rulemakings remain unresolved. 

» In December 2001, the Commission adopted an NPRM that 

initiated an examination of the appropriate regulatory 

0

5

10

15

20

25

L i n e s (m i l l i o n s) 

2001 December 2002 June 2002 December 2003 June

High-Speed

Advanced Services

ADSL

Other Wireline

Cable Modem Service

Fiber

Satellite or Fixed Wireless

Access to Broadband Services Across 

Multiple Platforms

 High-Speed Services: Services with the capability of supporting a bandwidth in excess of 200 kilobits per second (kbps) in at least one 

direction. High-speed Internet (access) and digital TV (service) are examples of applications that could “ride” over advanced services, 

whereas asymmetric digital subscriber lines (ADSL) and cable modem service are particular technologies that are used to deliver

advanced services and/or high-speed services.

 Advanced Services: Services that have the capability of supporting, in both the provider-to-customer (downstream) and the 

customer-to-provider (upstream) directions, a bandwidth in excess of 200 kbps in the last mile.
FY 2003 Annual Program Performance Report Page 7

 Triennial Unbundled Network Element 

(UNE) Review 

 Wireline Broadband NPRM 

 Cable Modem proceeding 

requirements for the ILEC provision of broadband services, 

with a focus on traditional Title II common carrier regulation. 

The Commission sought comment on whether the ILEC 

provision of broadband services should be subject to dominant 

carrier regulation when an ILEC is dominant in the provision of 

traditional local exchange and exchange access service. 

» In May 2003, the Commission adopted an NPRM regarding the 

level of regulation that the BOC provision of inter-Local Access 

and Transport Area (LATA) services should be subjected to, 

upon the sunset of certain Section 272 requirements. The 

Section 272 Sunset NPRM overlaps somewhat with the 

broadband issues raised by the Incumbent ILEC Broadband 

NPRM. The Commission may address the issues raised by the 

Incumbent ILEC Broadband NPRM and the Section 272 Sunset 

NPRM together in the same Order in 2004. 

» The Triennial Review Order, released in August 2003, reduced 

the unbundling obligations applicable to new broadband 

networks, promoting investment in advanced facilities by 

incumbent LECs and competitors, in furtherance of the goals of 

Section 706 of the Telecommunications Act. In particular, the 

Order significantly reduced the unbundling obligations for mass 

market “fiber-to-the-home” loops. 

» In its Triennial Review Order, the Commission also adopted an 

NPRM seeking comment on whether the FCC should modify 

the so-called pick-and-choose rule that permits requesting 

carriers to opt into individual portions of interconnection 

agreements without accepting the entire agreement. Comments 

on the NPRM were filed in October and November 2003. The 

projected completion data of the pick-and-choose NPRM is late 

summer 2004. 

» On February 14, 2002, the FCC adopted an NPRM that 

concluded that wireline broadband Internet access services – 

whether provided over a third party’s facilities or selfprovisioned facilities – are information services, with a 

telecommunications component, rather than 

telecommunications services. Information services include such 

services as voice mail and e-mail, which ride over 

telecommunications facilities. 

» On October 6, 2003, the U.S. Court of Appeals for the Ninth 

Circuit released its Brand X decision. In that decision, the 

Court held that the transmission element of cable modem 

broadband service constitutes a telecommunications service. 

The decision in Brand X is directly relevant to the regulatory 

classification issues raised in the Wireline Broadband NPRM. 

The Commission has petitioned the Court for a rehearing en 

banc. That petition is pending. The Commission may consider 

the Wireline Broadband NPRM after the Court rules on the 

Commission’s petition. 

» On March 14, 2002, the FCC adopted a Declaratory Ruling and 

NPRM designed to promote widespread deployment of 

broadband services. 

» On October 6, 2003, the Ninth Circuit Court of Appeals vacated 

the Declaratory Ruling, in part. The Commission’s Office of 

General Counsel has sought rehearing of the Court of Appeals 

decision. The ultimate resolution of the item is to promote 

broadband deployment, which should result in better quality, 

lower prices and more choices for consumers. 
FY 2003 Annual Program Performance Report Page 8

 Ka-Band Non-geostationary Satellite 

Orbit, Fixed Satellite Service (NGSO 

FSS) R&O 

 Earth Stations on Vessels NPRM 

9 Develop a statutory definition of and 

analytical framework for broadband services 

across multiple platforms. 

9 Initiate study of power line communications 

in the provision of broadband services to the 

home. 

9 Collect and publish baseline data on the 

deployment of broadband services, 

particularly to rural America. 

3⁄4 The FCC completed and commenced several rulemakings dealing 

with satellite issues which foster the deployment and adoption of 

broadband technologies: 

» On June 18, 2003, the FCC adopted a Report and Order which 

decided the means for sharing among existing and prospective 

licensees in the non-geostationary satellite orbit, fixed satellite 

service (“NGSO FSS”) in certain Ka-band frequencies. 

Existing and prospective licensees for Ka-band NGSO FSS 

propose satellite-based Internet service and a variety of other 

data, video and telephony services, often through high-speed or 

broadband communications channels. We anticipate this action 

will foster an increase in competition for existing satellite and 

terrestrial service, thereby providing consumers with additional 

choices when purchasing these services. 

» During FY 2003, the FCC moved forward on the Earth Stations 

on Vessels NPRM which proposes to provide regulatory 

certainty to both terrestrial fixed service and fixed satellite 

service operators in the Ku-band and C-band, proposing rules 

for satellite services on vessels, including broadband services. 

This proposal will implement the results of the 2003 World 

Radiocommunication Conference and will seek to establish a 

new framework for the licensing of earth stations on vessels 

(ESVs) in the United States. This initiative will advance FCC’s 

goals for market-driven deployment of broadband technologies, 

innovation, and efficient use of spectrum and offers consumers 

the benefits of broadband services while on vessels, including 

cruise ships, cargo, and other vessels. 

3⁄4 In the Declaratory Ruling, the FCC classified the cable modem 

service as an interstate “information service” that is subject to FCC 

jurisdiction and not a “cable service” as previously defined by the 

Communications Act. In the Wireline Broadband NPRM, the FCC 

developed an analytical framework that is consistent, to the extent 

possible, across multiple platforms. The regulatory framework will 

conceptualize broadband broadly to include any and all platforms 

capable of fusing communications power, computing power, highbandwidth intensive content, and access to the Internet. Service 

providers across platforms are now in the process of re-engineering 

legacy networks to provide broadband Internet access. 

3⁄4 On April 23, 2003, the FCC issued a Notice of Inquiry (NOI) 

seeking public comment on using existing electrical power lines to 

provide Internet and broadband services to homes and offices. 

3⁄4 The NOI fulfilled our obligation to initiate a study of power line 

communications. Work is now proceeding to further detail 

requirements necessary for broadband over power line (BPL) 

deployment in parallel with industry-led trials. Success in this 

deployment will yield another avenue for the delivery of broadband 

to the consumer and business marketplace. 

3⁄4 As of June 2003, 483 providers (holding companies) of local 

telecommunications and broadband services filed a FCC Form 477, 

a questionnaire used to determine whether advanced 

telecommunications capability is being deployed to all Americans 

in a reasonable and timely fashion. 
FY 2003 Annual Program Performance Report Page 9

Strategic Goal: Support the Nation’s economy by ensuring there is a comprehensive and competitive 

framework within which the communications and video programming revolution can continue 

so that all consumers can make meaningful choices among and have equal access to 

communications services, and foster the creation of a pro-competitive environment overseas 

by establishing a dialog with regulators in other countries. 

Performance Goals: 

 Ensure American consumers can choose among multiple reliable and affordable 

communications services.

 Ensure that all American consumers retain reliable wireless and wireline phone services. 

 Create and maintain a two-way dialogue with regulators around the globe in order to foster 

the creation of pro-competitive global markets. 

 Create and maintain a two-way dialogue with American consumers so that they are 

informed about their rights and responsibilities. 

FY 2003 Outcome Indicators: 

3⁄4 Increasing percentage of households with competing providers for multichannel video 

programming and information services. 

3⁄4 Increasing number of consumers and businesses have reliable wireless and wireline phone 

service (continuity of service). 

3⁄4 Decreasing price for residential and business domestic (local/interstate) wireless and 

wireline services. 

3⁄4 Decreasing price for international calls. 

~~ FY 2003 Outcome Indicators ~~ 

3⁄4 Increasing percentage of households with competing providers for multichannel video 

programming and information services. 

 As of June 2003, 88.4% of the 106.6 million total television households subscribed to a multichannel video 

programming distribution (MVPD) service, an increase of 3.2 percentage points over the 85.2% of all TV households 

that were MVPD subscribers in June 2002. In June 2003, 66.1% of all TV households were cable subscribers; 19.1% 

were direct broadcast satellite (DBS) subscribers; and 3.2% subscribed to other MVPD services. In June 2003, noncable MVPD subscribers represented 22.3% of all TV households, a 2.3 percentage point increase over the 20% 

reported in June 2002. 

COMPETITION

6 7 .0 % 6 5 .2 % 6 6 .1 %

1 5 .7 % 1 7 .3 % 1 9 .1 %

3 .2 % 3 .2 % 2 .7 %

1 0 5 ,4 4 4 ,3 3 0

1 0 6 ,6 4 1 ,9 1 0

1 0 2 ,1 8 4 ,8 1 0

0 %

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2001 2002 2003

0

2 0 ,0 0 0 ,0 0 0

4 0 ,0 0 0 ,0 0 0

6 0 ,0 0 0 ,0 0 0

8 0 ,0 0 0 ,0 0 0

1 0 0 ,0 0 0 ,0 0 0

C ab le S ub scrib ers D B S S ub scrib ers O th er T V H o useho lds:

S o u rce : F C C

MVPD Subscribers as a Percentage of TV Households 
FY 2003 Annual Program Performance Report Page 10

3⁄4 Increasing number of consumers and businesses have a choice among wireless and wireline 

service providers. 

Wireless Carrier Market Entry

(2000-2003)

87.8% 90.8% 94.1% 94.7%

0%

20%

40%

60%

80%

100%

Mid-2000 Mid-2001 Mid-2002 Mid-2003

Percentage of U.S. Population in a County with 3 or More More Wireless Carriers

Source of Data: WTB’s CMRS Report

Mobile carriers generally do not release information on the number of completed calls or service downtime. However, the 

existence of multiple carriers in the same geographic areas permits customers multiple avenues of access to wireless service.

Competitive Local Exchange Carrier Market Entry

(2000-2003)

60.1%

72.7% 75.2%

83.0%

0%

20%

40%

60%

80%

100%

Mid-2000 Mid-2001 Mid-2002 Mid-2003

Percentage of Households in Zip Codes with 3 or More CLECs

Source: Local Telephone Competition: Status as of June 30, 2003, Industry Analysis and Technology Division, Wireline
FY 2003 Annual Program Performance Report Page 11

3⁄4 Lower relative price for wireless and wireline services. 

Wireless Minutes of 

Use per Month 2000 to 2002

Minutes of Use 

per Month

Price

per Minute

UP

67.5%

255 Minutes

in 2000

427 Minutes

in 2002

38.9%

DOWN

11¢ in 2002

18¢ in 2000

Price per minute was determined by dividing the average monthly 

mobile phone bill by the average minutes of use per month.

Source: FCC, Eighth Annual CMRS Report

NB: December 2003 statistical data will not be available until July 2004.

All Good and Services

Telephone Services

90

95

100

105

110

115

120

1997 1998 1999 2000 2001 2002 2003*

CPI (Dec. 1997 = 100)

Source: Bureau of Labor Statistics. 

The CPI index of telephone services is based on a market basket intended to represent the telephone-related expenditures of a 

typical urban household, includes local, long distance, and cellular services.

 Retail price of all 

goods is increasing.

Retail price of 

telephone service is

 decreasing.

14.50%

-1.47%

Since 1997, the retail price of all 

goods and services has increased, 

while the telephone service 

component of that basket has 

decreased.

* Jan-Oct

Consumer Price Indices 

Telephone Services Compared to All Goods and Services 
FY 2003 Annual Program Performance Report Page 12

3⁄4 Decreasing price for international calls. 

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

~~ FY 2003 Output Activities ~~

FY 2003 Output Activities FY 2003 Accomplishments 

Affordable Choice

9 Conduct review and make recommendations to 

improve the USF contribution methodology. 

9 Enforce regulations that encourage reliable, 

affordable provision of multichannel video 

programming services by multiple providers. 

Affordable Choice

3⁄4 On December 12, 2002, the FCC adopted interim 

modifications to the universal service contribution 

methodology to maintain the viability of universal 

service in the near term. Specifically, the FCC 

concluded that contributions should be based on 

projected collected interstate end-user 

telecommunications revenues. The FCC also adopted a 

rule prohibiting carriers from marking up the 

contribution factor in universal service pass-through 

charges for end-user customers. 

3⁄4 On April 23 and December 17, 2003, the FCC adopted 

new rules to simplify and streamline the operations of 

the schools and libraries program of the universal 

service fund (USF) to improve program administration, 

create a more efficient application process for program 

participants, and improve program oversight to prevent 

waste, fraud, and abuse. 

3⁄4 In 2003, the FCC resolved over 170 must carry and 

market modification proceedings which ensure that 

video programming can be viewed over cable systems, 

and issued over 50 appeal orders governing cable rate 

Average Price Per Minute for an International Call

$0.59

$0.51

$0.43

$0.33

$0.27

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

1998 December 1999 December 2000 December 2001 December 2002 December

Average price per minute

for an international call

December 2003 statistical data will not be available until January 2005.

Total U.S. Revenue/Outgoing U.S. minutes = Price Per Minute.

(Preliminary)
FY 2003 Annual Program Performance Report Page 13

Reliable Service

9 Conduct quarterly reviews of carrier compliance 

with Section 214 (continuity of service) 

requirements. 

Two-way Dialogues

9 Initiate and maintain a two-way dialogue with 

regulators around the globe on broadband and 

other emerging technologies. 

9 Conduct review of international regulatory and 

accounting rate policies that will promote 

competition and lower international calling rates 

for U.S. consumers. (Output activity language 

modified.)

reasonableness. In addition, the FCC granted several 

Open Video System applications to cable competitors 

and acted to ensure vertically integrated programming 

is available to competitors. 

Reliable Service

3⁄4 During FY 2003, 49 applications were filed with the 

FCC under Section 214 of the Telecommunications Act 

of 1996 for discontinuance of wireline service. Section 

214 requirements ensure that service to communities is 

not discontinued without advance notice to the public 

and Commission authorization. The rules include 

special procedures and filing requirements in a number 

of special situations, including impairment of telephone 

and telegraph service, emergency discontinuances, 

closure of public toll stations, closures at military 

establishments, and notification of service outages. 

Receipt and processing of carrier filings for 

discontinuance are monitored on a quarterly basis. 

Two-way Dialogues

3⁄4 The FCC held discussions with regulators from Italy, 

Germany, India, Denmark, Jamaica, China, 

Singapore, Brazil, Spain, Russia, Japan, Korea, and 

representatives of the Telecommunications 

Regulators Association of Southern Africa on 

broadband and other emerging technologies. 

Additionally, the agency hosted 490 international 

visitors from 124 countries during FY 2003. 

3⁄4 At the World Radiocommunication Conference2003, the FCC successfully negotiated with other 

countries to add allocations to increase opportunities 

for broadband via the radio spectrum. Specifically, 

we reached agreement for spectrum that can be used 

to provide Wi-Fi services in the 5 GHz band and 

high-speed internet access to airline passengers in the 

14GHz band. 

3⁄4 On October 10, 2002, the FCC adopted a Notice of 

Proposed Rulemaking addressing the reform of the 

International Settlements Policy, international simple 

resale and benchmarks policy, and the issue of 

foreign mobile termination rates. 
FY 2003 Annual Program Performance Report Page 14

Strategic Goal: Encourage the highest and best use of spectrum domestically and internationally in order to 

encourage the growth and rapid deployment of innovative and efficient communications 

technologies and services. 

Performance Goals: 

 Ensure that the Nation’s spectrum is used efficiently and effectively. 

 Advocate U.S. spectrum interests in the international arena. 

FY 2003 Outcome Indicators: 

3⁄4 Increasing number of approvals for enhanced telecommunications equipment. 

3⁄4 Increasing deployment of new services making use of underutilized or unlicensed spectrum. 

3⁄4 U.S. positions on spectrum effectively advanced in the international negotiations and 

enforcement of treaties (number of U.S. positions partially or fully adopted). 

~~ FY 2003 Outcome Indicators ~~ 

3⁄4 Increasing number of approvals for enhanced telecommunications equipment. 

Enhanced Telecommunications Equipment Authorization 

Type of Telecommunications Equipment 

 Approved (Grants Issued) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total FY 03 

Telecommunications Certification Bodies (TCB) 1,054 1,166 1,250 1,475 4,945 

FCC Equipment Authorization Services (EAS) 158 134 122 107 521 

Total 1,212 1,300 1,372 1,582 5,466 

SPECTRUM
FY 2003 Annual Program Performance Report Page 15

3⁄4 Increasing deployment of new services making use of underutilized or unlicensed spectrum. 

Facilitate deployment of new or existing services or 

devices that make efficient use of spectrum

Potential Long-term Outcomes for Spectrum 

In FY 2003, the Commission made significant progress in developing and implementing spectrum initiatives that 

contribute to overall performance goals for spectrum both domestically and internationally. Collectively, these 

activities promote: 

• Increased access to spectrum by making new or more flexible spectrum available (via auction or other means) 

for public safety, broadband mobile and fixed, satellite and other uses, including unlicensed applications. 

• Expeditious delivery of service to consumers through improved licensing mechanisms that utilize automation, 

encourage licensee due diligence and sharing of spectrum to further efficiency. 

• Deployment of new technologies and robust services though enhanced performance standards, and other rules 

that will encourage future investment as well as research and development activities. 

• Efficient and effective use of spectrum through build-out compliance and audit procedures. 

•World Radio 

Conference 2003 (5 

GHz, V band) and WRC 

2007 preparations 

•Above 28 MHz WRC 

implementation rules 

•Advanced Wireless 

Service “3G” band 

•Part 74 Rewrite

•Below 28 MHz WRC

•Amateur Service 

Allocation 

Allocation

•Public Safety access to 

4.9 GHz band 

•70/80/90 GHz service 

rules for millimeter 

wave bands 

•MMDS/ITFS proposed 

flexible rules 

•Advanced Wireless 

services “3G” rules 

•Ancillary Terrestrial 

Component satellite 

rules 

•Ka-Band NGSO service 

rules 

•Satellite Licensing 

Reform rules 

•Earth Stations on 

Vessels rules 

•Unlicensed –National 

Information 

Infrastructure (U-NII) 

Rules 

Policy 

•1670-1675 MHz auction 

•Lower and Upper 

Paging bands auction 

•Lower 700 MHz auction 

•Closed Broadcast 

auction 

•Narrowband PCS 

auction 

•Regional Narrowband 

PCS auction 

•New space and earth 

station licenses and 

modifications 

•Schedule S automated 

form for satellite 

licensing 

•Improved satellite fleet 

management 

•Radio and TV licenses, 

renewals, and 

modifications 

Licensing 

•Spectrum audit of sitespecific licenses in the 

220-222 MHz band 

• Satellite milestone 

review 

•International satellite 

coordination 

•Negotiations and 

coordination with 

Mexico and Canada 

•Radio and TV rule and 

policy violations in the 

context of licensing 

Oversight 
FY 2003 Annual Program Performance Report Page 16

3⁄4 U.S. positions on spectrum effectively advanced in the international negotiations and enforcement 

of treaties (number of U.S. positions partially or fully adopted). 

International Negotiations 

Enforcement of Treaties 

World Radiocommunication Conference (WRC) 2003 established treaty text in the form of the Radio Regulations, which bind countries once 

ratified. The FCC participates in the U.S. delegation to the WRC as the advocates for commercial operators for two main reasons: (1) to secure 

spectrum allocations that allow for new telecommunications services to enter the market; and (2) to protect incumbent telecommunication services 

from interference. 

Agenda Items 

(Major WRC-03 Issues) United States Position 

World 

Radiocommunications 

Conference for 2003 

(WRC-2003) 

3⁄4 Harmonization of Public 

Protection/Disaster Relief 

Spectrum 

3⁄4 High Speed Internet 

Access for Airline 

Passengers 

3⁄4 Regulatory Restrictions 

on the Global Positioning 

System (GPS) 

3⁄4 Wi-Fi (5 GHz Spectrum) 

The World Radiocommunications Conference-2003 adopted a 

Resolution that provides guidance to countries on possible 

bands for use by public protection or disaster relief systems. 

The United States achieved its objective of including in the 

Resolution the ranges 746-806 MHz, 806-869 MHz and 4940-

4990 MHz for future advanced solutions for public protection 

and disaster relief. 

The United States succeeded in getting the World 

Radiocommunication Conference-2003 to make a secondary 

aeronautical mobile satellite service allocation in the 14-14.5 

GHz band. This allocation will allow systems, including the 

Boeing Connexion system, to provide high speed broadband 

service to airline passengers. Lufthansa and British Air have 

already provided the service on a test basis. 

The World Radiocommunication Conference-2003 addressed 

regulatory issues related to the radio navigation satellite 

service (RNSS) such as GPS. The United States successfully 

resolved the regulatory issues including the most contentious 

related to coordination of systems. As a result of negotiations, 

the U.S. GPS system and Galileo (the proposed European 

system) will follow formal coordination procedures on a 

going-forward basis only. The U.S. achieved its goal of 

ensuring the International Telecommunication Union would 

not retroactively apply radio regulation procedures to earlier 

GPS filings. 

The United States achieved its goal of allocating additional 

spectrum for mobile systems including Wi-Fi operations. 

WRC-03 allocated 455 MHz of spectrum in the 5 GHz band. 

Consistent with the FCC position, the WRC-03 decision 

provides flexibility to allow outdoor applications in part of the 

band. U.S. consumers will benefit by the economies of scale 

that this international allocation affords the ICT manufacturers. 

Enforcement of Treaties 

During FY 2003, work was performed on a large number of issues dealing with coordination of bilateral cross-border 

spectrum use in Canada and Mexico. 

CANADA 

Interim Arrangement with Wireless Communications Service 

Amendment to DTV Letter of Understanding (LOU) for Public Safety Access to Channels 63 & 68 

Special Coordination Procedures (SCP) between Skytel Corp. of U.S and DataTrail of Canada 

SCP between Nextel Comm of U.S. and Tele-Mobile Co. in Canada 

MEXICO 

United States and the Secretaria de Comunicaciones y Transportes FM and TV Channel 6 

United States and the Secretaria de Comunicaciones y Transportes Low Power TV and other services in the 700 MHz band 
FY 2003 Annual Program Performance Report Page 17

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

~~~ FY 2003 Output Activities ~~

FY 2003 Output Activities FY 2003 Accomplishments 

Effective Use

9 Complete study to determine measures to 

facilitate deployment of cognitive radio. 

9 Increase the number of new spectrum use 

licenses (prompt assignment). 

Effective Use

3⁄4 During FY-2003, the FCC held a public tutorial and a workshop on 

cognitive radio technologies to study the latest developments in this 

area. The tutorial, held on February 13, 2003, considered the feature 

detector technology, which is one of the latest cognitive radio 

technologies. The workshop, held on May 19, 2003, considered a 

broad range of cognitive radio technologies, as well as possible 

measures for facilitating deployment of such technologies. Both 

activities laid the groundwork to formulate a rulemaking proceeding in 

this regard, which was adopted by the FCC on December 17, 2003. 

3⁄4 During FY 2003, the FCC processed nearly 521,000 applications for 

wireless telecommunications services. This included 236,000 

applications for new and renewed licenses and special temporary 

authority, 50,000 assignments of licenses and transfer of control, 

56,000 license modifications, and 179,000 other requests. Ninety-eight 

percent of these applications were processed in 90 days or less. 

3⁄4 The FCC adopted seven rulemakings to increase the number of new 

spectrum use licenses: 

 On October 30, 2002, the FCC adopted a Report and Order 

amending Part 74 of the rules pertaining to the broadcast auxiliary 

service (BAS) to permit BAS stations to introduce new technologies 

and create a more efficient BAS that can more readily adapt as the 

broadcast industry converts to the use of digital technology, such as 

digital television (DTV). 

 On November 7, 2002, the FCC adopted a 2nd Report and Order 

allocating a total of 90 megahertz to fixed and mobile services. 

This allocation consists of two contiguous 45-megahertz blocks 

suitable for the provisions of advanced wireless services (AWS). 

 On February 12, 2003, the FCC adopted 2nd Report and Order and 

2nd Further Notice of Proposed Rulemaking which addressed the 

promotion of spectrum-efficient technologies on certain Part 90 

frequencies in the private land mobile radio services (PLMRS). 

 On February 14, 2003 the FCC adopted a Report and Order that 

addressed the diversity of low power operations in the private land 

mobile radio (PLMR) 450-470 MHz band. 

 On April 29, 2003, the FCC adopted a Report and Order amending 

Parts 2 and 97 of the Commission's Rules to create a low frequency 

allocation for the Amateur Radio Service which provides access to 

5 channels in or near the 5250-5400 kHz on a secondary basis for 

the amateur service, and upgrading the existing secondary amateur 

service allocation to primary status in the 2400-2402 MHz band. 

These changes will enhance the ability of amateur operators to 

communicate at 5000 kHz when propagation conditions do not 

permit communication at 3500 or 7000 kHz, and provide additional 

protection for the amateur operators now using the 2400-2402 MHz 

band. 

 On June 25, 2003, the FCC adopted the 3rd Report and Order which 

revised the service area definition as well as the buildout 

requirement for the Multichannel Video Distribution and Data 

Service in the 12.2-12.7 GHz band (12 GHz band). 

 On August 7, 2003, the FCC adopted a Memorandum Opinion and 

Order adopting service rules to govern the licensing of 27 MHz of 

electromagnetic spectrum in the 216-220 MHz, 1390-1395 MHz, 
FY 2003 Annual Program Performance Report Page 18

9 Initiate procedures to allocate underutilized 

spectrum and promote the use of 

unlicensed services. 

9 Improve satellite licensing and fleet 

management. (New FY 2003 output 

activity.)

International Interests

9 Negotiate and enforce satellite and other 

coordination treaties with affected 

countries. 

9 Advance U.S. positions on spectrum use at 

the 2003 World Radiocommunication 

Conference.

1427-1429 MHz, 1429-1432 MHz, 1670-1675 MHz, and 2385-

2390 MHz bands, which were reallocated for non-Government use. 

3⁄4 The FCC adopted two rulemakings to increase the deployment and 

allocation of underutilized spectrum and to promote the efficient use of 

unlicensed spectrum. 

 On January 29, 2003, the FCC adopted a 3rd Report and Order, 3rd

Notice of Proposed Rulemaking and 2nd Memorandum Opinion and 

Order. The FCC reallocated 30 MHz of spectrum from the 2 GHz 

Mobile Satellite Service (MSS) to fixed and mobile services; 

allocated for fixed and mobile wireless services the 1990-2000 

MHz, 2020-2025 MHz, and 2165-2180 MHz bands; and sought 

comment on use of the 1910-1920 MHz band, which is currently 

available for unlicensed personal communications service (UPCS) 

asynchronous (generally data) applications, but at present is unused. 

 On February 25, 2003, the FCC adopted a Report and Order to 

implement domestically, various allocation decisions from 

International Telecommunication Union (ITU) World 

Radiocommunication Conferences concerning the frequency bands 

below 28 MHz. 

3⁄4 These rulemakings reassign underutilized spectrum for use in advanced 

wireless services and will permit greater broadband access for wireless 

consumers. These actions promote increased use of both licensed and 

unlicensed spectrum. 

3⁄4 The FCC completed three steps to reform its satellite licensing. First, 

in April 2003, the FCC adopted a new first-come/first-served approach 

for satellite space station licensing. Second, in June 2003, the FCC 

allowed companies the ability to move satellites within their fleets to 

locations for which they have a license. Third, in June 2003, the FCC 

introduced a number of initiatives to facilitate the application process 

for satellite and earth station licenses. 

International Interests

3⁄4 As shown above in the “Enforcement of Treaties” Table, in FY 2003, 

work was performed on a large number of issues dealing with a 

coordination of bilateral cross-border spectrum use in Canada and 

Mexico. 

3⁄4 During FY 2003, the FCC participated in the following 

Administration-to-Administration satellite coordination agreements: 

Australia, Russia, Brazil, Germany, Japan, United Kingdom, Spain, the 

Netherlands, Papua New Guinea and Malta. These agreements enabled 

U.S. satellite networks to operate without causing or receiving harmful 

interference relative to the foreign satellite networks. 

3⁄4 At the World Radiocommunication Conference for 2003 (WRC-03), 

the U.S. addressed and resolved a number of issues including: (1) 

Harmonization of Public Protection/Disaster Relief Spectrum; (2) High 

Speed Internet for Airline Passengers; (3) Regulatory Restrictions on 

the Global Positioning System (GPS); and (4) Wi-Fi (5 GHz spectrum). 

The first phase of the Implementation Plan for the Final Acts of the 

WRC-03 was completed. As specified in the WRC-03 Implementation 

Plan issued on August 7, 2003, all of the FCC actions targeted for 

completion by the end of 2003 have been implemented. The results of 

WRC-03 will further advance the digital migration to new spectrumbased technology platforms and further protect homeland security. 
FY 2003 Annual Program Performance Report Page 19

Strategic Goal: Revise media regulations so that media ownership rules promote competition and diversity in 

a comprehensive, legally sustainable manner and the mandated migration to digital modes of 

delivery is facilitated. 

Performance Goals: 

 Develop a sound analytic foundation for media ownership rules. 

 Facilitate the Congressionally-mandated transition to digital television and further the 

transition to digital radio. 

FY 2003 Outcome Indicators: 

3⁄4 Significant progress in the transition to digital television and radio. 

3⁄4 Increasing investment by consumers in digital equipment. 

3⁄4 Increasing deployment by industry in digital programming, equipment, and infrastructure. 

~~ FY 2003 Outcome Indicators ~~ 

3⁄4 Significant progress in the transition to digital television and radio. 

 By the end of FY 2003, a total of 1,247 or (73.4%) of 1,698 stations were authorized to be on the air – 688 (40.5% 

-- 611 commercial and 77 non-commercial) were under Special Temporary Authority and 559 (35.2% -- 438 

commercial and 121 non-commercial) were licensed facility or program test DTV stations. An increase in the number 

of television stations broadcasting digitally led to increased consumer demand for improved television service and for 

the development of the new DTV technology and competition. 

MEDIA

DTV Stations Authorized to be on the Air

158

54 331

312

559

688

0

200

400

600

800

1,000

1,200

1,400

1,600

Special Temporary Authority

Licensed Facility or Program Tests

November 7, 2001 October 20, 2002 September 30, 2003

212

643

1,247
FY 2003 Annual Program Performance Report Page 20

 In October 2002, a Report and Order was adopted selecting a digital audio transmission technology. By the end 

of FY 2003, 72 digital terrestrial radio stations were authorized. 

3⁄4 Increasing investment by consumers in digital equipment. 

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

(t h o u s a n d s)

1998 1999 2000 2001 2002 2003

DTV Equipment Sold Total Number of DTV Households

0%

10%

20%

30%

40%

2000 2001 2002 2003

U.S. Households with DVD Players

0

5

10

15

20

2001 2002 2003

Digital Cable Subscribers 

(in millions)

Increasing Investment by Consumers in 

Digital Equipment

2003 statistical data will not be available until the Summer of 2004.

TRANSITION TO DIGITAL TERRESTRIAL RADIO

0

72

0

20

40

60

80

Number of Authorized Stations

Cumulative Total as of FY 02 Cumulative Total as of FY 03
FY 2003 Annual Program Performance Report Page 21

3⁄4 Increasing deployment by industry in digital programming, equipment, and infrastructure. 

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

~~ FY 2003 Output Activities ~~

FY 2003 Output Activities FY 2003 Accomplishments 

Media Ownership

9 Complete selected studies that support 

development of appropriate media rules for the 

current media marketplace. 

9 Issue Third Biennial Review Report of Broadcast 

Ownership Rules. 

Digital TV/Radio

9 Create and enforce regulations to advance the 

digital transition and implement public education 

efforts. 

Media Ownership

3⁄4 October 1, 2002, the FCC’s Media Ownership Working 

Group released 12 media ownership studies that 

support the development of appropriate media rules for 

the media marketplace. 

3⁄4 On June 2, 2003, the FCC revised its broadcast 

ownership rules, in compliance with Section 202(h) of 

the Communications Act, to assure that the rules 

protect diversity, localism, and competition while 

taking account of the media marketplace. 

Digital TV/Radio

3⁄4 In October 2002, the FCC adopted a Report and Order 

selecting a digital audio transmission technology. 

Following its review of extensive tests, the FCC 

authorized digital FM and digital daytime AM 

operations. This action permits, but does not require, 

broadcasters to begin providing terrestrial digital radio 

service immediately. The pace and extent of 

implementation will be determined by broadcasters, 

Deployment by Industry in Digital 

Programming, Equipment, and Infrastructure

0

20

40

60

Daily Average

High Definition Programs in 2002

Broadcast TV Networks Satellite-Delivered Networks

0

1

2

3

DTV Equipment

1998 1999 2000 2001 2002

$0

$5

$10

$15

$20

1998 1999 2000 2001 2002

2003 statistical data will not be available until the Summer of 2004.

Cable Industry: Digital Infrastructure 

Expenditures

(in billions)

Factory-to-Dealer Shipments

(in millions)
FY 2003 Annual Program Performance Report Page 22

9 Develop statistical data for tracking 

consumer/industry investment in digital 

programming and equipment. 

consumers, and consumer electronics manufacturers. 

The FCC expects to adopt a Further Notice of Proposed 

Rulemaking in FY 2004 concerning final transmission 

standards, technical standards, and service and 

licensing rules. 

3⁄4 On April 4, 2003, the FCC adopted a Report and Order 

and Memorandum Opinion and Order establishing 

standards and procedures to govern extensions of time 

to construct and operate Commercial and NonCommercial Educational DTV stations. 

3⁄4 On August 6, 2003, the FCC took an important step 

toward bringing digital TV service to rural America by 

adopting a Notice of Proposed Rulemaking seeking 

comment on rules for digital low power television and 

television translator stations. 

3⁄4 On September 10, 2003, the FCC adopted rules for 

digital “plug-and-play” cable compatibility so that 

consumers can plug their cable directly into their digital 

TV set without the need of a set-top box. 

3⁄4 The FCC continues to license commercial and noncommercial digital television (DTV) stations. 

3⁄4 The FCC procured various commercial publications to 

gather statistical data to track the progress of the digital 

conversion. 
FY 2003 Annual Program Performance Report Page 23

Strategic Goal: Provide leadership in evaluating and strengthening the Nation’s communications 

infrastructure, in ensuring rapid restoration of that infrastructure in the event of disruption, 

and in ensuring that essential public health and safety personnel have effective 

communications services available to them in emergency situations. 

Performance Goal: 

 Promote the reliability, security and survivability of the communications infrastructure. 

FY 2003 Outcome Indicators: 

3⁄4 Increasing deployment of E-911. 

3⁄4 Increasing deployment of WPAS. [Indicator will be deleted in FY 2004.]

3⁄4 Increasing Telecommunications Service Priority (TSP) participation. 

3⁄4 Increasing reporting of service outages across multiple platforms. [Indicator will be 

deleted in FY 2004.]

3⁄4 Increasing amount of spectrum available for public safety communications. 

~~ FY 2003 Outcome Indicators ~~ 

3⁄4 Increasing deployment of E-911. 

HOMELAND SECURITY 

Phase II E-911 Operational Growth

Nov. 1, 2002 – Nov. 1, 2003

(Cumulative)

0

200

400

600

800

1,000

1,200

1,400

Nov-02 Feb-03 May-03 Aug-03 Nov-03

Phase II PSAPs in Operation

Number of Public Safety Answering Points (PSAPs) receiving Phase II location information from at least one mobile 

service licensee. Phase II rules require licensees to transmit 911 caller location information to PSAPs with greater 

accuracy than Phase I deployment. 
FY 2003 Annual Program Performance Report Page 24

3⁄4 Increasing deployment of WPAS. 

Deployment of Wireless Priority Access Service (WPAS) 

Area of Deployment (nationwide) Carrier Effective Date Status of Deployment 

Washington, DC 

New York, NY 

T-Mobile December 9, 2003 All WPAS users must dial *272 preceding the 

destination number to obtain priority access during 

wireless network congestion. 

Eastern United States T-Mobile January 21, 2003 NCS plans to add other global system for mobile 

communications (GMS) carriers (AT&T Wireless, 

Cingular, and Nextel) in the near future. NCS also 

plans to add code division multiple access (CDMA) 

carriers such as Verizon Wireless and Sprint PCS as 

soon as funding is available. 

Albuquerque, NM / Austin & 

Dallas, TX / Chicago, IL / 

Cincinnati, OH / Denver, CO / 

Detroit, MI / Honolulu, HI / 

Milwaukee, WI / Oklahoma City & 

Tulsa, OK / Salt Lake City, UT; 

Wichita, KS / Connecticut area / 

South & Central PA / Upstate New 

York / West Texas 

T-Mobile April 24, 2003 NCS plans to add other global system for mobile 

communications (GMS) carriers in the future. NCS also 

plans to add code division multiple access (CDMA) 

carriers. 

Arizona / Connecticut / Delaware / 

Idaho / Indiana / Maine / 

Maryland / Mississippi / Missouri / 

Montana / Nebraska / New Jersey / 

Oregon / New Hampshire / Rhode 

Island / Washington / Wyoming 

T-Mobile October 2003 WPAS is currently available in the markets listed. 

WPAS is also available in portions of the T-Mobile 

network in: Iowa, Kansas, Minnesota, North Dakota, 

South Dakota, and Wisconsin. 

WPAS will not be available on the T-Mobile network 

until early 2004 in: California, Nevada, North Carolina, 

and South Carolina. 

3⁄4 Increasing Telecommunications Service Priority (TSP) participation. 

 TSP provides for priority restoration of communications services that support national security and emergency 

preparedness (NS/EP) missions during disasters, including terrorist attacks. Any federal, state, or local government 

entity that relies on telecommunications services to provide its NS/EP mission can qualify for TSP. Nationwide, 

there are 55,000 communications lines covered by the TSP program. All 911-centers in the nation would qualify 

for the TSP program; however, only a very small percentage of 911-centers actually participate. In the first 

quarter of FY 2003, only 759 911-center communications lines were covered by the TSP program out of 30,000 

lines that would qualify. As a result, the FCC began an initiative to increase TSP coverage of 911-centers. The 

TSP program increases the reliability of essential NS/EP communications services by minimizing out-of-service 

times. During FY 2003, TSP coverage for 911-centers increased by over 200% (from 759 to 2,471). As a result, 

these centers’ operations were made substantially more reliable. 

Increase Telecommunications Service Priority (TSP) Participation 

User Type 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 

911 Administrators 759 (1.0%) 1,211 (1.6%) 1,947 (2.6%) 2,471 (3.3%) 

Wireless Priority Access Service (WPAS) is a Department of Homeland Security, National Communications System (NCS) program for 

wireless priority network access available only to designated leadership at all government levels, national security & emergency 

preparedness personnel, and private sector critical infrastructure leaders and decision makers. The WPAS rules were approved by the 

FCC. The NCS manages the program. Deployment of WPAS is on a volunteer basis. 
FY 2003 Annual Program Performance Report Page 25

3⁄4 Increasing reporting of service outages across multiple platforms. 

 Service Platforms Covered -- Includes wireline carriers and CATV providers for “Voice and Dial-up Data” 

services. Does not include any “Broadband Data” services and does not include wireless or satellite service 

providers for either service category. Hence, two of our ten possible platform/service category combinations are 

included, resulting in 20%. 

 Voice and Dial-up Data Subscribers Covered – Includes wireline carriers and CATV account for 327 million 

assigned telephone numbers out of a total 483 million; hence 68% of total subscribers are covered by our current 

outage reporting requirements. 

 Broadband Data Subscribers Covered – No “Broadband Data” services are covered by our current reporting 

requirements. 

3⁄4 Increasing amount of spectrum available for public safety communications. 

Spectrum Available for Public Safety Communications

Spectrum Service/Device Frequency Detail 

FCC affirmed rules to authorize 

the deployment of ultrawideband technology in a 

Memorandum Opinion and 

Order on Reconsideration 

(MO&O). 

960-3100 MHz On February 13, 2003, the FCC adopted a MO&O that largely 

reaffirmed the procedures adopted in 2002 to authorize the unlicensed 

operations of ultra-wideband devices. Minor changes were 

implemented to further facilitate the operation of imaging devices 

(i.e., through-wall imaging systems by law enforcement, emergency 

rescue and firefighter personnel in emergency situations, etc.). 

The 4.9. GHz Band Transferred 

from Federal Government Use 

in a Memorandum Opinion and 

Order on Reconsideration 

(MO&O) and 3rd Report and 

Order (R&O). 

4940-4990 MHz On April 23, 2003, the FCC adopted a MO&O and 3rd R&O that 

established licensing and service rules for the 4940-4990 MHz to 

promote effective public safety communications and innovation in 

wireless broadband services in support of public safety. 

Licensing electromagnetic 

spectrum (27 MHz) in MO&O 

216-220 MHz, 

1390-1395 MHz, 

1427-1432 MHz, 

1670-1675 MHz, 

2385-2390 MHz 

On August 7, 2003, the FCC adopted a MO&O adopting service rules 

to govern the licensing of 27 MHz of electromagnetic spectrum in the 

216-220 MHz, 1390-1395 MHz, 1427-1429 MHz, 1429-1432 MHz, 

1670-1675 MHz, & 2385-2390 MHz bands, which were reallocated 

for non-Government use. 

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

~~ FY 2003 Output Activities ~~

FY 2003 Output Activities FY 2003 Accomplishments 

9 Complete the deliverables required by the Network 

Reliability and Interoperability Council (NRIC). 

3⁄4 On March 14, 2003, NRIC met to consider best practices 

for network restoration and disaster recovery/business 

continuity, and received progress reports from various 

focus groups. NRIC VI completed Phase I and 

identified seven accomplishments. 

3⁄4 The Network Reliability and Interoperability Council 

has published all best practices and completed a 

thorough outreach campaign that will wind up with a 

DVD describing the work of the Council that can be 

distributed via direct mail or the Internet. Majority of 

best practices that the industry uses to ensure continuity 

of service in times of crisis was increased to include 

physical security, cybersecurity, public safety and 

business continuity. These best practices will better 

fortify domestic communications networks against 

terrorist attacks. 
FY 2003 Annual Program Performance Report Page 26

FY 2003 Output Activities FY 2003 Accomplishments 

9 Complete work of the National Coordination 

Committee (NCC), a federal advisory committee 

established to facilitate implementation of wireless 

public safety interoperability. 

9 Issue regulations facilitating the implementation of 

wireless public safety interoperability. 

9 Increased coordination with the National 

Communications System (NCS) on implementation 

of wireless priority access service (WPAS). 

9 Facilitate deployment of enhanced 911 services 

through new regulations, clarification of existing 

regulations, enforcement proceedings, and data 

tracing. (New FY 2003 output activity.)

3⁄4 The NCC issued its final recommendations to the 

Commission concerning 700 MHz interoperability 

equipment standards and concluded its federal advisory 

committee activities. 

3⁄4 During FY 2003, the FCC adopted two rulemakings 

addressing spectrum issues to improve wireless public 

safety interoperability-- 

 On February 13, 2003, the FCC adopted a 

Memorandum Opinion and Order affirming its rules 

authorizing the deployment of ultra-wideband (UWB) 

technology, and freed the industry to build and deploy 

UWB based products. These devices, now entering 

the marketplace, include systems that permit 

emergency personnel to locate victims under debris 

and behind walls, for instance, where a fire is in 

progress. 

 On April 23, 2003, the FCC adopted a 

Memorandum Opinion and Order and 3rd Report and 

Order that established service rules for the 4.9 GHz 

band which is 50 megahertz of spectrum for 

broadband, short distance, and advanced technology 

applications. 

3⁄4 On January 21, 2003, the NCS announced 

implementation of the WPAS to areas of the Eastern 

United States. As of September 2003, T-Mobile had 

made WPAS access available in portions of 34 states 

and the District of Columbia. 

3⁄4 During 2003, the FCC continued its strategic plan to 

achieve rapid E911 deployment, including rulings to 

clarify and expand implementation responsibilities, 

investigation of technical and operational challenges, 

and outreach and coordination. The FCC brought 

together representatives from the Federal 

government, public safety community, wireless 

carriers, local exchange carriers (LECs), and other 

interested stakeholders to address ongoingimplementation issues such as Public Safety 

Answering Point (PSAP) funding, wireless carrier 

implementation and prioritization, issues related to 

LECs, and the challenges faced by rural carriers. 

These coordination initiatives are examples of how 

all parts of the Commission are working together on 

E-911 deployment and its integration into the 

Homeland Security efforts. 
FY 2003 Annual Program Performance Report Page 27

Strategic Goal: Emphasize performance and results through excellent management, develop and retain 

independent mission-critical expertise, and align the FCC with dynamic and converging 

communications markets. 

Performance Goal: 

 Become a more responsive, efficient, and effective agency capable of facing the 

technological and economic opportunities of the new millennium. 

FY 2003 Outcome Indicators: 

3⁄4 Reducing the average time required to complete rulemakings (document/knowledge 

management and workflow). 

3⁄4 Increasing efficiency in the processing of workload (measured by and reported in the 

Quarterly Performance & Results Review (QPRR)). 

3⁄4 Employing of appropriate number of attorneys, engineers and economists. 

3⁄4 All FCC employees participating in appropriate career development activities. 

3⁄4 Increasing rate of agency achievement of strategic objectives. 

~~ FY 2003 Outcome Indicators ~~ 

3⁄4 Reducing the average time required to complete rulemakings (document/knowledge management 

and workflow). 

MODERNIZE THE FCC

Average Time Required to Complete Rulemakings

0

10

20

30

40

50

D a y s

FY 2001 FY 2002 FY 2003

Circulation to Adoption Adoption to Release

144 items 

released

180 items 

released

166 items 

released
FY 2003 Annual Program Performance Report Page 28

3⁄4 Increasing efficiency in the processing of workload (measured by and reported in the Quarterly 

Performance & Results Review (QPRR)). 

PERCENTAGE OF ACTIONS FILED ELECTRONICALLY

FY 03 Goal: 85%

Source of Data: Speed of Disposal Reports from Bureaus/Offices

0%

25%

50%

75%

100%

FY 02 Average FY03 Average

International Bureau Media Bureau Office of Engineering Technology

Wireline Competition Bureau Wireless Telecommunications Bureau

(Agency Goal is 85%)

Percentage of Actions Disposed of Within Speed of 

Disposal Goals

FY 03 Goal: 95%

Source of Data: Speed of Disposal Reports from Bureaus/Offices

0%

25%

50%

75%

100%

FY 02 Average FY 03 Average

Enforcement Bureau International Bureau Media Bureau

O ffice of Engineering Technology Wireline Competition Bureau Wireless Telecommunications Bureau

This chart reflects Customer Service Goals. 

(Agency Goal is 95%)
FY 2003 Annual Program Performance Report Page 29

3⁄4 Employing of appropriate number of attorneys, engineers and economists. 

Outcome Indicators Status 

9 Employ appropriate number of attorneys, engineers 

and economists. 

o Perform Workforce Analysis 

o Develop Plan for Addressing Imbalances 

3⁄4 Workforce analysis was initiated in July 2003 and 

completed in December 2003. 

3⁄4 A draft Plan is scheduled for completion in FY 2004. 

3⁄4 All FCC employees participating in appropriate career development activities. 

Outcome Indicators Status 

9 Ensure all FCC employees participate in appropriate 

career development activities. 

o Establish Performance Baseline Through 

Agency-wide Survey 

o Implement Individual Development Plan 

(IDP) Program for All Employees. 

3⁄4 Completed agency-wide workforce survey on the use 

of FCC University to establish performance baseline. 

3⁄4 The FCC began mandatory briefings for all 

supervisors in September 2003 and briefings for all 

employees in October 2003, in time for mid-year 

career development plan discussions. 

3⁄4 Increasing rate of agency achievement of strategic objectives. 

Agency’s Strategic Plan Achievements

(FY 2003 Outcome Indicators)

0

2

4

6

8

Total # of

Indicators

Achieved Not Achieved Data Not Available

until FY 2004

Broadband Competition Spectrum

Media Homeland Security Modernize the FCC
FY 2003 Annual Program Performance Report Page 30

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

~~ FY 2003 Output Activities ~~

FY 2003 Output Activities FY 2003 Accomplishments 

Efficient Processes

9 Initiate analysis and design of an integrated 

licensing interface portal and Help Desk. 

9 Initiate policy and rulemaking system (document/ 

knowledge management and workflow) pilot for 

selected auctions proceedings. 

9 Bureau/Office efficiency initiatives reported in 

QPRR. 

Expert Staff

9 Develop plan to ensure agency has appropriate 

engineering, legal, and economic expertise. 

Efficient Processes

3⁄4 The FCC took the first steps leading to the modernization 

of outdated web based application systems. Using 

external customer feedback, FCC created a new Support 

Center Website that is more customer focused and 

provides toll-free telephone assistance. This effort 

involved the integration of separate processes, as well as 

the introduction of new technologies and web based selfhelp tools including online submission of password reset 

requests and technical support requests. 

3⁄4 The FCC also commenced implementation of electronic 

filing for the Cable Operations and Licensing System on 

March 13, 2003, for forms filed by cable systems. 

3⁄4 In FY 2003, the FCC initiated a pilot project to improve 

productivity, decision-making, and collaboration in the 

policy and rulemaking process. This project, “Improving 

the Management of Policy Activities through 

Collaborative Technologies” (IMPACT) will implement 

document management, workflow, knowledge 

management and collaboration tools, and new document 

editing capabilities to increase the timeliness of policy 

and rulemaking activities. 

3⁄4 As reflected in the rulemaking chart on page 27, between 

FY 2002 and FY 2003, based on the total number of 

items circulated in FY 2002 (180 items) and FY 2003 

(166 items), the FCC had a 33% decrease in the average 

number of days for an item to be adopted (from 42 to 28) 

and a 17% decrease in the average number of days for 

release (from 12 to 10). 

3⁄4 The FCC identified 27 outcome (performance) indicators 

to be tracked and monitored in the QPRR categorized 

under the six agency-wide goals – Broadband, 

Competition, Spectrum, Media, Homeland Security, and 

Modernize the FCC. 

3⁄4 In FY 2003, as reflected in the two charts on page 27, the 

FCC exceeded its speed of disposal and electronic filing 

goals. 

• Speed of Disposal -- 98% of 576,860 actions were 

disposed within the processing goals, a 2% increase 

in comparison to 96% of 635,967 actions disposed 

of in FY 2002. 

• Actions Filed Electronically -- 95% of the 575,838 

applications were filed with electronic filing 

capability or online, a 3% increase in comparison to 

92% of 621,227 applications filed online in FY 

2002. 

Expert Staff

3⁄4 During FY 2003, the FCC initiated a workforce analysis 

to determine the appropriate mix of engineers, attorneys, 

and economists. 
FY 2003 Annual Program Performance Report Page 31

9 Formalize Engineering-in-Training (EIT) Program 

and establish a mentoring program. 

9 Expand competency-based career development 

program for key groups. 

Results-Based Management

9 Senior Executive Service (SES) performance plans 

and awards are linked to the FCC’s Strategic Plan 

goals and measures. 

9 Develop plan for implementation of performancebased budgeting. 

3⁄4 The FCC hired 7 engineers through the Engineer-inTraining program and visited 15 universities to conduct 

on-campus recruitment. 

3⁄4 The FCC held training sessions for people who wanted to 

become mentors and for those who wanted to receive 

mentoring. We matched Graduate Degree Program 

(Engineering) participants with mentors and is currently 

ongoing. 

3⁄4 During FY 2003, the FCC established a performance 

baseline through an agency-wide survey and implemented 

Individual Development Plan (IDP) program for all 

employees. The FCC University catalog was expanded to 

include new sections for consumer affairs and consumer 

outreach specialists, program and management analysts, 

and clerical and administrative staff. 

Results-Based Management

3⁄4 As of March 2003, the FCC linked all SES performance 

plans and awards linked to the FCC Strategic Plan. 

3⁄4 The FCC established a performance-based budgeting 

system through the integration of budget, performance 

goals, and resources. 
FY 2003 Annual Program Performance Report Page 32

Program Evaluations

The Commission is dedicated to ensuring that both the mission and resources entrusted to it are properly and 

effectively managed. The performance of the Commission is evaluated in several ways – through the Annual 

Program Performance Report and the annual financial audit, by investigations and audits conducted by the 

FCC’s Inspector General and the U.S. General Accounting Office (GAO), and via formal program evaluations 

carried out by staff in the Office of the Managing Director. 

At the request of Congress, the Commission prepared the “Annual 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) wrote a number of reports evaluating FCC activities which 

resulted in recommendations to the Chairman of the Commission; others were broader reviews of 

communications-related issues or other matters in which the Commission may have a role or possess information 

useful to GAO. The Commission provided input for the following reports issued by GAO in FY 2003: 

1) Telecommunications: FCC Should Include Call Quality in its Annual Report on Competition in Mobile 

Phone Service (GAO-03-501) 

2) Telecommunications: Comprehensive Review of U.S. Spectrum Management with Broad Stakeholder 

Involvement Is Needed (GAO-03-277) 

3) Telecommunications: Additional Federal Efforts Could Help Advance Digital Television Transition 

 (GAO-03-7) 

4) Building Security: Security Responsibilities for Federally Owned and Leased Facilities (GAO-03-8) 

5) Telecommunications: Issues in Providing Cable and Satellite Television Services (GAO-03-130) 

During FY 2003, the Commission participated in OMB’s Program Assessment Rating Tool (PART) addressing 

the Schools and Libraries (E-rate) Program of the Universal Service Fund. Congress set forth the purpose of the 

USF program for elementary and secondary schools/classrooms and libraries to have access to advanced 

telecommunications services at rates less than the amounts charged for similar services to other parties. As a 

result of our analysis, the Commission determined that several steps needed to be taken to improve the universal 

service schools and libraries program. In December 2003, the Commission adopted an Order outlining new rules 

to further improve the administration of the schools and libraries program (E-rate program). The Commission 

moved forward to simplify program administration, ensure equitable distribution of funds, and prevent waste, 

fraud, and abuse. 

To further improve agency efficiency and operate more effectively, the Commission evaluated four program 

areas as a means to streamline productivity: 

(1) Regulatory Fees Program – The evaluation of the regulatory fee program focused on reforming and 

streamlining tedious procedures, eliminating unnecessary barriers, and improving use of agency resources. 

(2) Workforce Planning – Late FY 2003, an agency-wide workforce analysis was conducted to identify 

imbalances in the professional staff arena (attorney, engineer, and economist), with a Plan due to the Chairman in 

FY 2004. 

(3) Policy and Rulemaking Processes -- The FCC initiated the IMPACT Project (Improving the Management of 

Policy Activities through Collaborative Technologies) to help the FCC become more efficient, productive and 

responsive in the key area of policy and rulemaking. The IMPACT Project began in FY 2003 with a pilot 

implementation of document management, workflow, knowledge management and collaboration tools, and new 

document editing capabilities in FY 2004. 

(4) Electronic Licensing and Filing Systems (Integrated Licensing Interface Portal and Help Desk) – The FCC 

took the first steps leading to the modernization of outdated web based application systems to improve the 

agency’s electronic filing and licensing systems. Using external customer feedback, the FCC created a new 

Support Center Website (http://esupport.fcc.gov) that is more customer focused and provides toll-free telephone 

assistance. This effort involved the integration of separate processes, as well as the introduction of new 

technologies and web based self-help tools including online submission of password reset requests and technical 

supports. 
FY 2003 Annual Program Performance Report Page 33

Conclusion 

The FCC is continuing to find ways to foster competitive entry into established markets, while encouraging the 

development of open, competitive markets for new and innovative technological services. We must continually 

shift our focus to accommodate the changing telecommunications marketplace, to address consumers’ continued 

need for improved access to advanced telecommunications services and other emerging technologies, and to 

ensure the interoperability and survivability of our Nation’s telecommunications infrastructure. With the 

implementation of the FCC’s new Strategic Plan, covering fiscal years 2003 through 2008, the agency is in a 

better position to advance the public interest and to ensure the wise allocation of agency resources. In a 

continuing effort to improve agency management, the Commission is implementing a new cost accounting system 

in FY 2004 that links all resources to the six long-term strategic goals and tracks related expenditures. 

The FCC is responsible to Congress and the American people for ensuring that an orderly, efficient, and effective 

framework exists within which communications products and services can quickly and affordably be provided to 

the public. It is the mission of the FCC to ensure that the American people have available nation- and world-wide 

communications services (radio, television, wireline, wireless, satellite, and cable) at reasonable costs and without 

discrimination. The FCC must address the communications aspects of public health and safety, ensure the 

universal availability of basic telephone service, make communications services accessible to all people whether 

they live in a rural area or have disabilities, and protect and inform consumers about their rights. 

In FY 2004, the FCC will continue its important work to promote a regulatory environment that facilitates 

competition in all communications markets and the development and deployment of new technologies and 

services for all Americans. 
FY 2003 Annual Program Performance Report Page 34

FY 2004 & FY 2005 

Performance Goals ~ Outcome Indicators ~ Output Activities 

FY 2004 Output Activities 

Output 1 – Conduct rulemakings/issue and 

vigorously enforce regulations that influence the 

deployment and adoption of broadband technologies:

o Wireline Broadband Proceeding, 

o Cable Modem Proceeding, 

o Advanced Wireless Services, 

o MVDDS proceeding, 

o MDS/ITFS NPRM, and 

o Biennial Review proceedings. 

Output 2 – Review and, if necessary, adjust the 

definition of what constitutes broadband. 

Output 3 –Continue to measure the deployment of 

broadband technology, particularly to rural America. 

Output 4 – Take further action in ongoing 

rulemaking proceeding to evaluate Broadband over 

Power Lines. 

Output 5 – Continue to facilitate access to spectrum 

in order to encourage deployment of new and 

innovative broadband services. 

Output 6 – Create and maintain a dialogue with 

regulators at the state, local and tribal level and 

around the globe on policies to promote broadband 

development. 

FY 2005 Output Activities 

Output 1 – Conduct rulemakings/issue and vigorously 

enforce regulations that influence the deployment and 

adoption of broadband technologies: 

o Wireline Broadband Proceeding, 

o Cable Modem Proceeding, 

o Advanced Wireless Services, 

o MDS/ITFS NPRM, and 

o Biennial Review proceedings. 

Output 2 – Review economic and regulatory factors 

that impede broadband’s deployment, particularly to 

rural America. 

Output 3 – Continue to measure the deployment of 

broadband technology, particularly to rural America. 

Output 4 – In connection with Commission 

proceedings, develop testing procedures for broadband 

equipment useful for facilitating authorization under 

Commission rules. 

Output 5 – Create and maintain a dialogue with 

regulators at the state, local and tribal level and around 

the globe on policies to promote broadband 

development. 

Output 6 – Facilitate deployment of satellite 

broadband services. 

BROADBAND 

Performance Goal: Broaden the deployment of broadband technologies across the United States and globally. 

FY 2004 - 2005 Outcome Indicators: 

3⁄4 Increasing access to broadband services. 

3⁄4 Increasing access to broadband services and devices across multiple platforms: DSL, cable 

modem, satellite, terrestrial wireless, etc. 

3⁄4 Increasing number and types of unlicensed/licensed wireless broadband devices. 

^ ^ ^ ^
FY 2003 Annual Program Performance Report Page 35

FY 2004 Output Activities 

Output 1 – Foster the pro-competitive goals of the 

Telecommunications Act by reforming total element 

long-run incremental cost (TELRIC), intercarrier 

compensation, and universal service, examining voice 

over internet protocol (VOIP), local number portability, 

forbearance, biennial review proceeding, and 

implementing and enforcing provisions of the UNE 

proceeding. 

Output 2 – Adopt and enforce regulations which 

streamline and encourage reliable affordable 

communications services by multiple providers. 

Output 3 – Adopt and enforce rules to streamline 

administration of the Universal Service support 

mechanism and protect against waste, fraud, and abuse. 

Output 4 – Conduct quarterly reviews of carrier 

compliance to ensure continuity of service requirements 

are met. 

Output 5 – Increase consumer awareness of their rights 

in relation to phone service and enforce regulations to 

ensure those rights. 

Output 6 – Maintain a dialogue with regulators around 

the globe on competition issues. 

Output 7 – Review and analyze merger and transfers of 

control requests to ensure that consumers retain reliable 

and affordable communications services that serve the 

public interest. 

Output 8 – Adopt and implement policies that will 

decrease the price of international calls. 

Output 9 – Initiate international reporting reform.

FY 2005 Output Activities 

Output 1 – Foster the pro-competitive goals of the 

Telecommunications Act by reforming TELRIC, intercarrier 

compensation, and universal service, examining voice over 

internet protocol (VOIP), local number portability, 

forbearance, biennial review proceeding, and implementing 

and enforcing provisions of the unbundled network elements 

(UNE) proceeding. 

Output 2 – Adopt, implement and enforce regulations that 

promote the provision of advanced communications to all 

consumers, including wireless and satellite multichannel 

video services. 

 

Output 3 – Implement rules to streamline Universal Service 

Fund (USF) administration and protect against waste, fraud, 

and abuse through effective enforcement. 

Output 4 – Conduct quarterly reviews of carrier compliance 

to ensure continuity of service requirements are met. 

Output 5 – Continue international reporting reform. 

Output 6 – Increase consumer awareness of their rights in 

relation to phone service and enforce regulations to ensure 

those rights. 

Output 7 – Maintain a dialogue with regulators around the 

globe on competition issues. 

Output 8 – Review and analyze merger and transfers of 

control requests to ensure that consumers retain reliable and 

affordable communications services that serve the public 

interest. 

Output 9 – Adopt and implement policies that will decrease 

the price of international calls. 

Output 10 – Prepare for WRC-07.

COMPETITION 

Performance Goals: 

 Ensure American consumers can choose among multiple reliable and affordable means of communications. 

 Ensure that all American consumers have and retain reliable wireless and wireline phone services. 

 Create and maintain a dialogue with regulators around the globe to foster and sustain the creation of procompetitive foreign and domestic markets. 

 Create and maintain a dialogue with American consumers so that they are informed about their rights, choices 

and responsibilities and ensure these rights through strong enforcement. 

FY 2004 - 2005 Outcome Indicators: 

3⁄4 Increasing percentage of households with competing providers for multichannel video programming and 

information services. 

3⁄4 Increasing number of consumers and businesses have a choice among wireless and wireline service providers. 

3⁄4 Lower relative price for wireless and wireline services. 

3⁄4 Decreasing price for international calls. 

^ ^ ^ ^
FY 2003 Annual Program Performance Report Page 36

FY 2004 Output Activities 

Output 1 – Continue implementation of recommendations 

made by the Spectrum Policy Task Force and take steps to 

improve the efficient and effective use of spectrum such as 

promoting the use of spectrum for new efficient technologies 

and systems. 

Output 2 – Increase the number of new spectrum users. 

Output 3 – Negotiate and enforce satellite and other 

coordination treaties with affected countries. 

Output 4 – Develop rules to permit the licensing of 

innovative satellite technologies. 

Output 5 – Advance U.S. positions on spectrum through the 

International Telecommunications Union and other for a, 

including preparations for WRC-07. 

Output 6 – Enforce satellite milestones. 

Output 7 – Encourage the deployment of new spectrum 

efficient technologies, including spread spectrum systems, 

ultra-wideband systems and cognitive radio. 

Output 8 – Enforce regulations and investigate complaints 

affecting communications systems and infrastructure. 

Output 9 – Construct anechoic test facility for making 

sensitive measurements for advanced equipment and systems 

at the Columbia Engineering Laboratory. 

Output 10 – Increase reliance on market-driven transactions 

to promote and facilitate efficient spectrum usage. 

FY 2005 Output Activities 

Output 1 – Continue implementation of recommendations 

made by the Spectrum Policy Task Force and take steps to 

improve the efficient and effective use of spectrum such as 

promoting the use of spectrum for new, spectrum efficient 

technologies and systems. 

Output 2 – Increase the number of new spectrum users. 

Output 3 – Negotiate and enforce satellite and other 

coordination treaties with affected countries. 

Output 4 – Develop rules to permit the licensing of 

innovative satellite technologies. 

Output 5 – Advance U.S. positions on spectrum through the 

International Telecommunications Union and other for a, 

including preparations for WRC-07. 

Output 6 – Enforce satellite milestones. 

Output 7 – Encourage the deployment of new spectrum 

efficient technologies, including spread spectrum systems, 

ultra-wideband systems and cognitive radio. 

Output 8 – Enforce regulations and investigate complaints 

affecting communications systems and infrastructure. 

Output 9 – Promote the efficient use of spectrum for new 

technologies. 

Output 10 – Increase reliance on market-driven transactions 

to promote and facilitate efficient spectrum usage. 

Output 11 – Begin a multi-year audit of spectrum use to 

identify underutilized blocks of spectrum. 

Output 12 – Identify 100 megahertz of encumbered 

spectrum bands below 5 GHz and currently licensed 

under legacy command-and-control regimes to transition 

to expanded flexible rights licensing models within the 

next five years. 

SPECTRUM 

Performance Goals: 

 Ensure that spectrum is used efficiently and effectively. 

 Facilitate domestic and international deployment of new spectrum-based technologies and services. 

 Generally shift from rigid to flexible policy models. 

 Promote ease of access to spectrum by more users. 

FY 2004 - 2005 Outcome Indicators: 

3⁄4 Increasing number of approvals for enhanced telecommunications equipment. 

3⁄4 Facilitate deployment of new or existing services or devices that make efficient use of spectrum, while ensuring 

continued operation of existing services. 

3⁄4 Effectively advance U.S. positions on spectrum in international negotiations and enforcement of treaties 

(number of U.S. positions partially or fully adopted). 

^ ^ ^ ^
FY 2003 Annual Program Performance Report Page 37

FY 2004 Output Activities 

Output 1 – Resolve challenges to revised rules issued in 

Third Biennial Review of Broadcast Ownership Rules and 

issue NPRM for Fourth Biennial Review of broadcast 

ownership rules to assure that the rules reflect the current 

media marketplace. 

Output 2 – Adopt and enforce regulations to advance the 

digital transition and implement public education efforts, 

e.g., DTV Must-Carry, DTV Periodic Review, DTV LPTV 

and TV Translators, Plug-and-Play, Broadcast Flag, and 

Digital Audio Systems and Service Rules. 

Output 3 – Initiate any further actions to gather 

information and data from consumers, industry, civic 

organizations, and others to assess broadcasters’ service to 

local communities. 

Output 4 – Resolve and enforce broadcast, cable and 

satellite operating matters in a timely way (e.g., children’s 

television, public files, leased access, main studio, EEO, 

political programming, closed captioning, analog must 

carry, and other non-technical rules). 

Output 5 – Conduct staff review of DTV technical rules to 

identify any changes needed to facilitate the completion of 

the DTV transition mandated by statute. 

Output 6 – Foster the digital television transition by 

negotiating cross-border agreements with Canada and 

Mexico. 

FY 2005 Output Activities 

Output 1 – Complete Fourth Biennial Review of 

Broadcast Ownership Rules, including adoption of revised 

Media Ownership Rules that reflect the current media 

marketplace. 

Output 2 – Continue to adopt and enforce regulations to 

advance the digital transition and implement public 

education efforts, e.g., DTV Must-Carry, DTV Periodic 

Review, DTV LPTV and TV Translators, Plug-and-Play, 

Broadcast Flag, and Digital Audio Systems and Service 

Rules. 

Output 3 – Issue a Report to gather information and data 

from consumers, industry, civic organizations, and others 

to assess broadcasters’ service to local communities. 

Output 4 – Resolve and enforce broadcast, cable and 

satellite rule compliance matters that arise in licensing 

proceedings in a timely way (e.g., children’s television, 

public files, leased access, main studio, EEO, political 

programming, closed captioning, analog must carry, and 

other non-technical rules). 

Output 5 – Initiate any actions to revise DTV technical 

rules and table of allotments necessary to facilitate the 

completion of the DTV transition mandated by statute. 

Output 6 – Foster the digital television transition by 

working with industry to educate consumers to stimulate 

consumer investment in digital equipment. 

Output 7 – Foster the digital television transition by 

negotiating cross-border agreements with Canada and 

Mexico. 

MEDIA 

Performance Goals: 

 Develop a sound analytic foundation for media ownership rules. 

 Facilitate the transition to digital television and radio. 

 Clarify and ensure compliance with general media obligations. 

FY 2004 - 2005 Outcome Indicators: 

3⁄4 Significant progress in the transition to digital television and radio. 

3⁄4 Increasing investment by consumers in digital equipment. 

3⁄4 Increasing deployment by industry in digital programming, equipment, and infrastructure. 

^ ^ ^ ^
FY 2003 Annual Program Performance Report Page 38

FY 2004 Output Activities 

Output 1 – Identify and engage domestic and international 

counterparts on homeland security issues. 

Output 2 – Develop regulations to ensure the security and 

survivability of the satellite communications infrastructure, 

including treatment of orbital debris. 

Output 3 – Ensure public safety has adequate means of meeting 

communications needs through spectrum and technology. 

Output 4 – Increase the deployment of Telecommunications 

Service Priority participation. 

Output 5 – Enhance consumer awareness of communications 

security and reliability issues in emergency situations. 

Output 6 – Enforce technical regulations and investigate 

harmful interference complaints affecting public safety 

communications systems and infrastructure. 

Output 7 - Enhance public safety communications. 

Output 8 – Enhance telecommunications and media network 

reliability. 

Output 9 – Complete rulemakings/issue regulations that further 

the accessibility of the telecommunications network to people 

with disabilities (e.g., Telecom Relay Services (TRS) including 

annual review of TRS issues, and Section 255 accessibility to 

equipment and services). 

Output 10 – Facilitate deployment of enhanced 911 services 

through new regulations, clarification of existing regulations, 

enforcement proceedings, and data tracking. 

Output 11 – Coordinate Section 214 market access and Section 

310 foreign ownership reviews with the Executive Branch. 

Output 12 – Complete the deliverables required by the Network 

Reliability and Interoperability Council (NRIC) and Media 

Security and Reliability Council (MSRC) charters. 

Output 13 – Enhance the Emergency Alert System through 

consistent, strong enforcement of EAS equipment and testing 

 requirements. 

FY 2005 Output Activities 

Output 1 – Identify and engage domestic and international 

counterparts on homeland security issues. 

Output 2 – Develop regulations to ensure the security and 

survivability of the satellite communications infrastructure. 

Output 3 – Ensure public safety has adequate means of 

meeting communications needs through spectrum and 

technology. 

Output 4 – Increase the deployment of Telecommunications 

Service Priority participation. 

Output 5 – Enhance the delivery of alert and public warning 

messages. 

Output 6 – Enforce technical regulations and investigate 

harmful interference complaints affecting public safety 

communications systems and infrastructure. 

Output 7 – Enhance public safety communications. 

Output 8 – Enhance telecommunications and media network 

reliability. 

Output 9 – Complete rulemakings/issue regulations that 

further the accessibility of the telecommunications network 

to people with disabilities (e.g., Telecom Relay Services 

(TRS) including annual review of TRS issues, and Section 

255 accessibility to equipment and services). 

Output 10 – Facilitate deployment of enhanced 911 

services through new regulations, clarification of existing 

regulations, enforcement proceedings, and data tracking. 

Output 11 – Enhance consumer awareness of 

communications security and reliability issues in emergency 

situations. 

Output 12 – Coordinate Section 214 market access and 

Section 310 foreign ownership reviews with the Executive 

Branch. 

HOMELAND SECURITY 

Performance Goal: Promote the reliable, secure, and survivable communications infrastructure. 

FY 2004 - 2005 Outcome Indicators: 

3⁄4 Increasing deployment of E-911. 

3⁄4 Increasing Telecommunications Service Priority (TSP) participation. 

3⁄4 Increasing amount of spectrum available for public safety communications. 

3⁄4 Decreasing number of interference complaints affecting public safety communications. 

^ ^ ^ ^
FY 2003 Annual Program Performance Report Page 39

FY 2004 Output Activities 

Output 1 – Assess and report on the initial results of the 

IMPACT pilot. 

Output 2 – Bureau/Office efficiency initiatives reported in 

Quarterly Performance and Review Report. 

Output 3 – Ensure appropriate number of engineers, 

economists, and attorneys. 

Output 4 – All agency staff participates in appropriate 

career development discussions with their supervisor. 

Output 5 – Supervisory and managerial performance 

plans and awards are linked to the FCC’s Strategic Plan 

goals and measures. 

Output 6 – Implement performance-based budgeting 

based on OMB guidelines. 

Output 7 – To improve FCC operations, conduct audits, 

assessments and evaluations and make recommendations 

(e.g., Fiscal Year Financial Statements, Federal 

Information Security Management Act (FISMA) 

Evaluations, and Continuity of Operations Plan (COOP)).

FY 2005 Output Activities 

Output 1 – Bureau/Office efficiency initiatives reported in 

the Quarterly Performance and Review Report. 

Output 2 – Expand the Improving Management of Policy 

Activities through Collaborative Technologies (IMPACT) 

project. 

Output 3 – Continue to review and adjust staff 

composition to ensure a high-performing, diverse 

workforce. 

Output 4 – Implement a learning management system. 

Output 5 – Employee performance plans and awards are 

linked to the FCC’s Strategic Plan’s goals and measures. 

Output 6 – Continue implementation of performancebased budgeting based on OMB guidelines. 

Output 7 – To improve FCC operations, conduct audits, 

assessments and evaluations and make recommendations 

(e.g., Fiscal Year Financial Statements, and Federal 

Information Security Management Act (FISMA) 

Evaluations).

MODERNIZE THE FCC 

Performance Goal: Become a more responsive, efficient, and effective agency. 

FY 2004 - 2005 Outcome Indicators: 

3⁄4 Reducing the average time required to complete rulemakings (improve workflow, document and 

knowledge management. 

3⁄4 Increasing efficiency in the processing of workload (measured by and reported in the Quarterly 

Performance & Results Review (QPRR)). 

3⁄4 Employing of appropriate number of attorneys, engineers and economist. 

3⁄4 All FCC employees participating in appropriate career development activities. 

3⁄4 Increasing rate of agency achievement of strategic objectives. 

^ ^ ^ ^
FY 2003 Annual Program Performance Report Page A-1

APPENDIX 

FY 1999 - FY 2002 Performance 

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

LICENSING 

Policy Initiative: Improve our speed of disposal for processing license applications. Substantially reduce our 

backlog including licensing applications, petitions for reconsideration and other proceedings. Act on petitions for 

reconsideration that do not raise significant new issues within 60 days of the record closing. Performance was 

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

Goal Actual Performance 

FY99: 

3⁄4 90% of applications disposed within speed of 

disposal goals.

FY00: 

3⁄4 90% disposal within speed of disposal goals.

FY01: 

3⁄4 90% disposal within speed of disposal goals.

FY02: 

3⁄4 95% disposal within speed of disposal goals. 

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

FY99: 

3⁄4 No FY 99 goal.

FY00: 

3⁄4 Backlog does not exceed 40% of receipts. 

FY01: 

3⁄4 Backlog does not exceed 10% of receipts.

FY02: 

3⁄4 Backlog does not exceed 5% of receipts.

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

FY99: 

3⁄4 No FY 99 goal.

FY00: 

3⁄4 75% of petitions for reconsideration with no 

significant new issues acted on within 60 days. 

FY01: 

3⁄4 90% acted on in 60 days.

FY02: 

3⁄4 95% acted on in 60 days. 

FY99:

3⁄4 88% processed within speed of disposal goals. 

FY00: 

3⁄4 89% processed within speed of disposal goals. 

FY01: 

3⁄4 94% processed within speed of disposal goals.

FY02: 

3⁄4 96% processed within speed of disposal goals. 

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

FY00: 

3⁄4 Backlog reduced to 4%. 

FY01: 

3⁄4 Backlog reduced to .82%.

FY02: 

3⁄4 Backlog reduced to 1.7%. 

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

FY00: 

3⁄4 38% acted on in 60 days. 

FY01: 

3⁄4 94% acted on in 60 days. 

FY02: 

97% acted on in 60 days. 
FY 2003 Annual Program Performance Report Page A-2

Policy Initiative: 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. Performance was measured from 

data collected in the Quarterly Performance and Results Review.

Goal Actual Performance 

FY99: 

3⁄4 Provide electronic filing capabilities for licensing 

bureaus/offices.

FY00: 

3⁄4 60% of all documents filed electronically.

FY01: 

3⁄4 70% of all documents filed electronically.

FY02: 

3⁄4 80% of all documents filed electronically.

FY99:

3⁄4 Provided electronic filing capabilities for licensing 

bureaus/offices. 

FY00: 

3⁄4 60% of all documents were filed electronically.

FY01: 

3⁄4 77% of all documents were filed electronically.

FY02: 

3⁄4 92% of all documents were filed electronically.
FY 2003 Annual Program Performance Report Page A-3

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.

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 a year-end total 

of 141, representing a 1.4% reduction from FY99 (143 

FCC forms). 

FY01: 

3⁄4 20 forms eliminated and 9 forms added for a year-end 

total of 130, representing a 9.1% reduction from 

FY99. 

FY02: 

3⁄4 12 forms eliminated and 1 form was added for a year 

end total of 119, representing a 16.8% reduction from 

FY99.

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

interconnection and co-location policies. Performance was measured by reviewing the Wireline Competition 

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. 

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 78% of households with 2 new CLECs. 

FY01: 

3⁄4 91% of households with 1 new CLEC; 

3⁄4 83% of households with 2 new CLECs. 

FY02: 

3⁄4 94% of households with 1 new CLEC; 

3⁄4 86% of households with 2 new CLECs; 

3⁄4 78% of households with 3 new CLECs.
FY 2003 Annual Program Performance Report Page A-4

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. 

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 A total of 119 or 7.0% of 1,698 stations were 

licensed. The digital radio goals were not achieved 

because the AM and FM systems had not been fully 

developed or tested. 

3⁄4 The FCC expected 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. 

FY02: 

3⁄4 A total of 331 or 19.5% of 1,698 stations were on the 

air with licensed facilities or program test authority – 

279 of 1,314 (21%) commercial DTV stations and 52 

of 384 (14%) non-commercial education DTV 

stations. 

3⁄4 The FCC adopted a Report and Order in 2002 

selecting a digital transmission technology. 

3⁄4 Following its review of extensive tests, the FCC 

authorized digital FM and digital daytime AM 

operations in October 2002. This action permits, but 

does not require, broadcasters to begin providing 

terrestrial digital radio service immediately. The pace 

and extent of implementation will be determined by 

broadcasters, consumers, and consumer electronics 

manufacturers. The FCC expects to adopt a Further 

Notice of Proposed Rulemaking in FY03. A Second 

Report and Order to adopt transmission standards, 

technical standards, and service and licensing rules is 

expected in FY04. 

The vast majority of consumers can choose among at 

least three competitive multichannel video 

programming providers – a cable operator and two 

DBS operators. In October 2002, the FCC designated 

the proposed merger of the two primary DBS 

providers for hearing, in part, due to concerns 

regarding the elimination of competitive alternatives 

for consumers. 
FY 2003 Annual Program Performance Report Page A-5

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.

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 Commission received 4 applications – 2 

timely approved and 2 withdrawn; thereby meeting 

100% of its processing goals. 

FY01: 

3⁄4 The Commission received 6 applications covering 

7 states. Five applications were timely approved 

during FY01. 

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. The comment 

cycle closed April 2002.

FY02: 

3⁄4 The Commission received 15 applications covering 

26 states. Eight applications were timely approved/ 

processed, four were withdrawn and three remained 

pending during FY02. 100% of processing goals 

were met pursuant to the competitive requirements 

of Section 271 of the Act. 

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. 

FY00: 

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

providers. 

FY01: 

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

providers. 

FY02: 

3⁄4 83% of households with access to 5 or more 

providers. 
FY 2003 Annual Program Performance Report Page A-6

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

advanced cable. Performance was measured by reviewing the Commission’s Annual Video Competition Report.

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. 

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 Approximately 66% 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. 

FY02: 

3⁄4 Over 90% of households have access to 3 or more 

MVPDs; approximately 6% have access to 4 or 

more. 

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. 

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 Thirteen major mergers were acted on within 

180 days of being placed on public notice and 

two mergers exceeded the goal of 180 days. 

FY02: 

3⁄4 Fifteen major mergers were acted on within 

180 days of being placed on public notice and 

two mergers exceeded the goal of 180 days: 

COMSAT/Telenor (209 days) and 

Iridium/“Old” Iridium (230 days). 
FY 2003 Annual Program Performance Report Page A-7

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 in technical rules for certifying 

equipment.

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 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 can either be self-approved by the 

manufacturer or approved by a TCB. 

FY02: 

3⁄4 NOTE: The FCC achieved its goal of 

streamlining its technical certification rules ahead 

of schedule and this performance measure will be 

discontinued. 
FY 2003 Annual Program Performance Report Page A-8

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: $0.65 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. 

FY00: 

3⁄4 Average price of an international phone call: 

$0.48 per minute. 

FY01: 

3⁄4 Average price of an international phone call: 

$0.43 per minute. 

FY02: 

3⁄4 Average price of an international phone call: 

$0.33 per minute. 

3⁄4 The estimated savings in the telephone rates 

over the previous year were approximately 

$5.4 billion (based on $0.48 per minute for 

calendar year 2000) to American consumers. 
FY 2003 Annual Program Performance Report Page A-9

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 

setting 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. 

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 Issued an Order finalizing the INTELSAT 

privatization under the Orbit Act with 17 INTELSAT 

authorizations. 

3⁄4 Adopted an Order approving Inmarsat privatization 

consistent with the Orbit Act and authorized four 

companies to operate Inmarsat terminals in the United 

States. 

3⁄4 Adopted an NPRM exploring the possibility of 

allowing mobile satellite service operators to use 

terrestrial components in their mobile satellite service 

spectrum. 

3⁄4 Issued 11 satellite licenses for 34 orbit locations in 

the Ka-Band. 

3⁄4 Issued 8 licenses for launch and operation of 8 mobile 

satellite systems in the 2 GHz band. 

3⁄4 Proposed an allocation for satellite services in the VBand that allowed terrestrial operation to take place in 

the same band. 

3⁄4 Proposed a band arrangement and licensing rules for 

NGSO/FSS satellite operators in the Ku-Band. 

FY02: 

3⁄4 Issued a Report and Order setting out sharing 

arrangements between NGSO FSS Ku-band licensees. 

3⁄4 Issued 7 new space station licenses. 

3⁄4 Issued 260 new earth station licenses. 

3⁄4 Authorized the addition of one foreign-licensed 

satellite provider to the “permitted list,” allowing 

automatic access by any routine earth station in the 

United States. 

3⁄4 Issued a second Notice of Proposed Rulemaking 

exploring the options for streamlining of the earth 

station application process. 

In June 2002, the FCC released an Order modifying 

Parts 43 and 63 of the Rules. The modifications 

lessen regulatory burdens for certain carriers: CMRS 

carriers are exempt from Section 63.19 

discontinuance requirements, and CMRS carriers 

providing resale of international switched services 

need not file quarterly traffic and revenue reports 

region. 
FY 2003 Annual Program Performance Report Page A-10

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 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 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 This goal was not met because the demand for 

priority one services (telecommunications and 

Internet access) had increased substantially, 

leaving less funding for priority two services 

(internal connections that bring access to 

individual classrooms). Only 87% of public 

school instructional classrooms were connected to 

the Internet. In the fall of 2001, 99% of public 

schools in the United States had access to the 

Internet. Over the years, changes have occurred in 

the types of Internet connections used by public 

schools and the speed at which they are connected 

to the Internet. In 2001, 85% of public schools 

used broadband connections to access the Internet, 

a 5% increase from 2000. 

3⁄4 In some cases, due to cuts in local educational 

budgets, applicant schools may not have been able 

to contribute their portion of the funds necessary 

to connect classrooms.

FY02: 

3⁄4 ??% of public school instructional classrooms 

connected to the Internet. 

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

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

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. 

FY00: 

3⁄4 28% increase in penetration rates.

FY01: 

3⁄4 39% increase in penetration rates. 

FY02: 

3⁄4 45% increase in penetration rates. 
FY 2003 Annual Program Performance Report Page A-11

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. 

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%. 

FY00: 

3⁄4 FCC issued two Report and Orders on Number 

Resource Utilization. 

FY01: 

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. 

FY02: 

3⁄4 Approximately 20 new area codes were activated in 

2001, and approximately 10 new area codes have 

been activated in 2002. The level of activations in 

2002 represents a 50% decrease in area code 

activations over 2001. 

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 Implement more efficient number block pooling 

for a least 18 of the 100 largest MSAs. 

FY01: 

3⁄4 Same as FY00.

FY02: 

3⁄4 Implement more efficient number block pooling 

for at least 40 of the 100 largest MSAs. 

FY00: 

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

several state pooling trials in place. 

FY01: 

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. 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 January-October 2000, to 413 

for January-October 2001. 

FY02: 

3⁄4 Thousands-block number pooling has been 

implemented in approximately 86 MSAs and 185 

area codes. During 2002, 3,604 central office codes 

were returned. Net central office code assignments 

were 3,574 as compared to 4,340 in 2001. 
FY 2003 Annual Program Performance Report Page A-12

ENFORCEMENT 

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

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: 

3⁄4 187% increase in Common Carrier formal 

complaints resolved per attorney (using FY99 as a 

baseline). 

FY02: 

3⁄4 The FCC far exceeded this goal, achieving a 134% 

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. 

3⁄4 The FCC took in over $10 million in competitionrelated enforcement actions. 

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. 

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. 

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 51% reduction in the number of long-distance 

slamming informal complaints. 

FY02: 

3⁄4 In FY 2002, a total of 4,179 slamming complaints 

were filed with the FCC, representing a 41.2% 

reduction over FY 2000 (baseline). 

3⁄4 The FCC took in over $15 million in consumer 

protection enforcement actions. 
FY 2003 Annual Program Performance Report Page A-13

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 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. 

FY99

3⁄4 Release 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. 

FY02:

3⁄4 No disability-related formal complaints were 

filed in FY02. 

3⁄4 The FCC now tracks all disability-related 

inquiries and complaints on its Operations 

Support for Complaint Analysis and 

Resolution (OSCAR) reporting system. This 

has significantly improved the agency’s 

ability to identify trends in disability issues as 

they arise, and to expand its outreach efforts 

to the disabilities community and other 

interested parties. Since April 2002, when 

this tracking commenced, 650 disability 

inquiries and complaints have been recorded 

on OSCAR, and all of these cases are 

categorized by media – Cable, Radio & 

Broadcast, Wireline, and Wireless – and 

specific issues (TRS, Hearing Aid 

Compatibility, Access to Emergency 

Information, etc.). Our coverage of disability 

issues in our Quarterly Reports and 

specialized reporting to external parties has 

expanded considerably. 
FY 2003 Annual Program Performance Report Page A-14

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. 

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 The FCC inspected 2,156 towers: 97% were 

registered and 96% were properly marked and lit. 

FY02: 

3⁄4 The FCC inspected 3,613 towers, 98.4% were 

registered and 92.6% were properly painted 

and lit. This goal benefits the consumer by 

promoting air safety. The drop in percentage 

of towers properly marked and lit reflects the 

fact that Enforcement Bureau field agents 

expanded the geographic area in which they 

conducted inspections, thus casting a “wider 

net” to find noncompliant towers. 

3⁄4 The FCC took in approximately $1 million in 

tower safety enforcement actions. 
FY 2003 Annual Program Performance Report Page A-15

CONSUMER INFORMATION SERVICES 

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. 

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 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. 

FY02: 

3⁄4 The FCC filled 98% of alternatively formatted 

information available for persons with disabilities 

within 1 to 2 days after their request was submitted. 

Audiotapes were provided within 2 days of initial 

request. 

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. 

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 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. 

FY02: 

3⁄4 The FCC received 79,295 informal complaints 

and disposed of 73,679. The FCC successfully 

met its goal to reduce the average response time of 

5-7 days for informal consumer complaints, 

thereby improving customer service to consumers. 
FY 2003 Annual Program Performance Report Page A-16

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. 

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 During FY01, the FCC made substantial 

achievements in improving online access to its 

information--

• Established the Web Content Management 

Committee

• Redesigned the agency’s web site to make 

information compliant with Section 508 

disability requirements. 

• Implemented a new enterprise search engine.

• Unveiled “Bienvenidos,” our consumer pages 

for Spanish-speaking consumers. 

• Implemented web-based telephone company 

locator system. 

• Implemented Electronic Document 

Management System (EDOCS). 

• Improved access to consumer information. 

• Categorized all of our consumer fact sheets 

onto an online directory. 

• Provided an online version of the toll-free 

telephone menu system. 

• Consolidated complaint information into one 

site. 

FY02: 

3⁄4 The FCC’s web site redesign was completed. 

3⁄4 The Third Annual E-government Study of 

state and federal government web sites ranked 

the FCC’s web site first among all Federal 

government agencies. 

3⁄4 Revised and expanded the E-FOIA Request 

Form to allow the public to submit more detail 

request. 

3⁄4 Developed new policies and procedures for 

posting files to the web site to prevent 

duplicate posting of documents and to prevent 

sensitive information from being made public. 

3⁄4 Upgraded the main web server software to the 

latest version. 

3⁄4 Current web pages provide consumers and the 

industry with improved and timelier access to 

FCC information. 
FY 2003 Annual Program Performance Report Page A-17

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. 

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 Established partnerships with Federal, state and 

local government agencies, consumer groups, 

and the military for distribution of information. 

3⁄4 Began a campaign to educate consumers 

regarding inexpensive international calling 

options. As part of this campaign, the 

Commission developed a brochure (in 13 

languages) to provide critical information to 

consumers on international calling and associated 

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

information_directory.html#International). 

3⁄4 Established the Consumer/Disability 

Telecommunications Advisory Committee. 

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.

FY02: 

3⁄4 The FCC established the State Slamming 

Database as an example of our cooperative 

efforts with states. The agency receives reports 

each month from all 36 states that have opted 

into the Commission’s Slamming Resolution 

program. The input is consolidated on the State 

Slamming Database, which tracks receipts, 

resolutions, and actual slamming cases – detailed 

by operator – each month. The database allows 

local and national trends in slamming to be 

readily identified, and enhances data sharing 

between the Commission and the opted-in states. 
FY 2003 Annual Program Performance Report Page A-18

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

programs the FCC establishes during a fiscal year. 

Goal Actual Performance 

Continuing— 

FY02: 

3⁄4 Extend partnerships with industry and consumer 

groups. 

FY02: 

3⁄4 The FCC also shares selected disability complaint 

and inquiry data with the Institute of Electronic & 

Electrical Engineers on a monthly basis, and this 

information is included in its publications. The 

information is relied upon, in part, by the FCC 

technical community as a way of identifying 

trends in disability issues and promoting the 

development of new products responsive to 

evolving needs. 

3⁄4 The FCC issued a consumer alert to educate 

consumers regarding surcharges on international 

calls that terminate on foreign mobile telephones. 

3⁄4 The FCC worked with industry and U.S. and 

foreign government entities in partnerships 

directed toward fostering regulatory best practices 

for global communications services. Examples 

include support for a network in southern Africa to 

exchange expertise concerning information and 

communications technologies; participation in the 

ITU Development Sector Regulators Symposium; 

and training activities with USAID (focused on 

Eastern Europe, Africa, and the Caribbean), the 

World Bank (Latvia) and the U.S. 

Telecommunications Training Institute. In 

addition, the FCC International Visitors Program 

held 86 briefings for 435 foreign visitors, and the 

FCC participated in 110 multilateral conferences 

and 11 bilateral meetings.

3⁄4 The FCC participated in Study Groups at the 

International Telecommunications Union (ITU). 

ITU Study Groups include participants from 

around the world and provide a venue for 

exchanging information and ideas on various 

aspects of telecommunications regulation. 

3⁄4 The FCC developed a brochure to provide critical 

information to consumers on rates and features of 

wireless calling plans. FCC’s web site 

(http://www.fcc.gov/cgb/wirelessphone.pdf).

The FCC negotiated with the Advisory Council on 

Historic Preservation and the National Conference 

of State Historic Preservation Officers to 

streamline the historic preservation review process 

for new construction. 
FY 2003 Annual Program Performance Report Page A-19

SPECTRUM MANAGEMENT 

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. 

 

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 In February 2002, the Chairman 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. 

FY02: 

3⁄4 The FCC eliminated the spectrum cap for 

Commercial Mobile Radio Services (CMRS), 

thereby facilitating secondary market transactions. 

3⁄4 The FCC plans to adopt a Report and Order 

during FY03 that would further clarify our 

transfer of control policies.

3⁄4 The FCC issued a Notice of Proposed Rulemaking 

in the Space Station Licensing Reform proceeding 

that includes a proposal to remove restrictions on 

satellite licensees’ rights to trade their licenses on 

the secondary markets. 

3⁄4 The FCC conducted a spectrum occupancy 

measurement project in support of the Spectrum 

Policy Task Force at five locations. 
FY 2003 Annual Program Performance Report Page A-20

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. 

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 The FCC continued to work with the Interdepartmental 

Radio Advisory Committee (IRAC); coordinated with 

NTIA (Department of Commerce) on all FCC proceedings 

dealing with spectrum issues; and initiated review of the 

coordination process to examine ways for improvement. 

3⁄4 Questions arose concerning shared spectrum and the 

robustness and redundancy of our public safety 

communications network, following 9/11. The FCC 

established a Homeland Security Policy Council (HSPC) 

comprised of senior level officials. 

FY02: 

3⁄4 The FCC initiated a rulemaking proceeding regarding 

service rules for the 4.9 GHz band, which was transferred 

from Government spectrum and designated for public 

safety uses. 

3⁄4 The HPSC worked with other federal agencies as well as 

state and local entities concerning the robustness and 

redundancy of networks. The Network Reliability and 

Interoperability Council and the Media Security and 

Reliability Council also worked under new charters to 

address these issues. 

3⁄4 The FCC issued new rules for ultra-wide band devices 

(UWB), issued certification for equipment under new 

UWB rules, and amended rules to allow more flexibility 

in design and operation of unlicensed devices. These 

actions will foster the development of new products and 

increase consumer choice. 

3⁄4 The FCC issued a Notice of Proposed Rulemaking in the 

Space Station Licensing Reform proceeding proposes 

changing current satellite licensing procedures to allow 

for more efficient assignment of spectrum in satellite 

services. 

3⁄4 The FCC participates in the U.S. ITU World Radiocommunication Conference (WRC) preparatory process 

by soliciting input from U.S. industry in the FCC’s WRC 

Advisory Committee process and directly in the 

Department of State’s U.S. Delegation process. The next 

WRC will be held in June 2003. The WRC has 39 agenda 

items affecting planned spectrum use. The FCC’s 

participation in preparatory activities conducted 

throughout the year has been critical for advancing 

commercial and public safety interests. 
FY 2003 Annual Program Performance Report Page A-21

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. 

FY00: 

3⁄4 The FCC postponed Auction 31 (Upper 700 MHz) in response 

to Congressional action. 

FY01: 

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)(C) of the Communications Act of 1934, as 

amended, exempts applications for non-commercial 

educational (NCE) broadcast stations from auction, regardless 

of whether they apply for spectrum that the FCC has reserved 

specifically for them, or they apply for spectrum that is 

available generally for both commercial and NCE stations. 

Following the Court’s ruling, the FCC initiated a proceeding to 

consider how to allocate and license non-reserved broadcast 

spectrum, and expects to resolve these issues in the near 

future. The agency will then implement its revised allocation 

and licensing policies, which will, in turn, allow new broadcast 

stations (both commercial and NCE) to provide additional 

service to the public. 

FY02: 

3⁄4 The FCC completed seven auctions during FY02, which 

provided the industry with much needed spectrum to meet 

increased consumer demands. 

3⁄4 The Auction Reform Act of 2002 was signed into law on June 

19, 2002. This legislation eliminated statutory deadlines for 

spectrum auctions that applied to several bands, and provided 

the Commission with discretion to schedule future auctions. 

However, the Auction Reform Act directed the Commission to 

proceed with the auction of the Lower 700 MHz band C and D 

blocks but to postpone the scheduled June 19, 2002 auction of 

the remaining portions of the Lower 700 MHz and Upper 700 

MHz bands. In accordance with the statute, the auction of the 

Lower 700 MHz band C and D block spectrum began on 

August 27, 2002, and was completed on September 18, 2002. 

The Act also requires the Commission to report to Congress 

not later than June 19, 2003, on among other things, when it 

intends to reschedule the auction of the remaining 700 MHz 

bands. 

3⁄4 One auction for full power analog television facilities was 

conducted this fiscal year. No other auctions for broadcast 

facilities were held during FY 2002 due to the Court of 

Appeals’ ruling in National Public Radio v. FCC. 

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. 

3⁄4 The FCC conducted a field spectrum occupancy measurement 

project at ten locations to determine whether there were 

interference sources that could pose an impediment to the use 

of new technology in spectrum subject to auction. 
FY 2003 Annual Program Performance Report Page A-22

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. 

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 Completed a proceeding to add flexibility to 190 

MHz of spectrum at 2.5 GHz. 

3⁄4 Initiated Advanced Wireless Service (includes 3G) 

spectrum allocations by issuing a Notice of 

Proposed Rulemaking. 

FY02: 

3⁄4 Completed spectrum allocations in two separate 

proceedings for 77 MHz of spectrum transferred 

from Federal government use and 48 MHz of 

spectrum reallocated from TV broadcast use. 

3⁄4 Completed flexible spectrum allocations for 125 MHz, 

an increase of 47.6% (FY 00 baseline: 262.5 MHz). 

3⁄4 Advanced Wireless Services (3G) spectrum 

allocations were delayed until after FY02 

assessment completed. 

3⁄4 In November 2002, the FCC sought comment on 

licensing, technical, and operational rules to govern 

the use of the 1710-1755 MHZ and 2110-2155 MHZ 

bands for advanced wireless services (AWS). The 

FCC seeks to provide licensees in these bands with 

flexibility to use these bands to provide any service 

that is consistent with the bands' fixed and mobile 

allocation. These actions will benefit the public by 

fostering the development of new wireless services 

that will provide American consumers with additional 

communications options and capabilities. 

3⁄4 FCC adopted service rules governing 27 megahertz of 

spectrum (216-220 MHz, 1390-1395 MHz, 1427-1429 

MHz, 1429-1432 MHz, 1432-1435 MHz, 1670-1675 

MHz, and 2385-2390 MHz) that was transferred from 

Government to non-Government use to accommodate 

a variety of communications needs. 

3⁄4 FCC adopted service rules authorizing Multichannel 

Video and Distribution and Data Service in the 12.2-

12.7 GHz band. 

3⁄4 Provided spectrum for existing and potential licensees 

to plan for new or expanded networks or service 

offerings. 

3⁄4 Allowed technological innovation, such as the 

development of TDD technologies, due to some of the 

spectrum being “unpaired.” 
FY 2003 Annual Program Performance Report Page A-23

AGENCY-WIDE PERFORMANCE 

IMPROVEMENT INITIATIVES 

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

PERFORMANCE IMPROVEMENTS INITIATIVES 

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. 

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 Work on the Reorganization Plan was completed 

in August 2001. The FCC adopted the 

Reorganization Order in December 2001. 

FY02: 

3⁄4 Effective March 25, 2002, the FCC implemented 

a major reorganization with the establishment of 

three new bureaus – Media Bureau, Wireline 

Competition Bureau and Consumer and 

Governmental Affairs Bureau – in addition to the 

agency-wide consolidation of enforcement and 

consumer information functions. 
FY 2003 Annual Program Performance Report Page A-24

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. 

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 Increased training opportunities for employees 

through the development of an FCC Training 

Plan. 

3⁄4 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 Established the Excellence in Engineering” 

Program for technical and non-technical 

employees. 

3⁄4 Implemented the Excellence in Economic 

Analysis Program that conducted 12 seminars and 

two advanced mini-courses taught by world 

renowned economists. 

FY02: 

3⁄4 Developed a Learning and Development Program.

3⁄4 Established the Excellence in Engineering 

Graduate Degree Program, which provides up to 

three years of tuition support for engineers 

enrolled in an accredited post-graduate degree 

program.

3⁄4 Developed a Knowledge Sharing Program to 

increase knowledge, communications and 

improve relationships between Headquarters and 

Field Office personnel.

3⁄4 Implemented a training needs assessment to 

ensure that in-house courses offered mirror 

Bureau/Office needs.

3⁄4 Created and published both print and on-line 

versions of the FCC University competencybased training catalog, which is unique because it 

identifies technical and cross-cutting 

competencies for engineers, economists, 

attorneys, and leadership development at all 

levels. 

3⁄4 Revised the electronic Training Request Form 

182 to improve accuracy, and to include second 

level supervisory signature.

3⁄4 Issued three editions of the “Training Times,” an 

electronic newsletter designed to provide 

information and guidance regarding training and 

development.
FY 2003 Annual Program Performance Report Page A-25

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 Implement telecommuting alternative. 

FY01: 

3⁄4 Implement at least 2 alternative work schedule, 

e.g., telecommuting, job-sharing, flexible work 

schedules. 

FY02: 

3⁄4 Identify 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 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. 

FY02: 

3⁄4 The FCC established a Recruitment Bonus 

program as a means to attract new employees. 

During FY 2002, a total of 19 bonuses were 

approved. Meeting the goal better enabled the 

Commission to compete with the private sector 

and other Government agencies in attracting 

well-qualified professionals. This, in turn, 

helped provide improved service to the industry 

and consumers. 

3⁄4 The Telecommuting Program continues to be 

popular with approximately 325 regular 

telecommuters and 110 ad hoc telecommuters. 

The telecommuting program provides additional 

flexibility to employees in completing their work 

at home and other locations. 
FY 2003 Annual Program Performance Report Page A-26

Policy Initiative: Strengthen technical capabilities by hiring more engineers/technologists and re-establishing 

entry-level engineering program. 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/technology staff by 5% over 

FY99 baseline (277 engineers/technologists), 

including entry-level engineers. 

FY01: 

3⁄4 Increase engineering/technology staff by 5% over 

FY99 baseline (277 engineers/technologists). 

FY02: 

3⁄4 Increase engineering/technology staff by 10% 

over FY99 baseline (277 

engineers/technologists). 

FY00: 

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

(5.4% of FY99 baseline), including 5 entry-level 

recruits. 

FY01: 

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

(10.5% of FY99 baseline), including 12 entrylevel recruits. The agency launched an 

aggressive Engineer-in-Training Program, which 

was 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. 

FY02: 

3⁄4 The FCC exceeded its 10% goal by hiring 34 

engineers and technologists (12.3% of FY99 

baseline), including 18 entry-level recruits. 

3⁄4 Through the Engineer-in-Training (EIT) 

Program, 10 universities were visited to conduct 

on-campus recruitment – North Carolina A&T, 

University of Maryland, Virginia Tech, 

University of Puerto Rico at Mayaguez, Ohio 

State University, Wright State University, 

Tennessee Tech University, Hampton University, 

Carnegie Melon University, Polytechnic 

University of San Juan. During FY02, the EIT 

Program has significantly enhanced and 

improved the agency’s recruiting and retention 

performance and allowed the FCC to compete 

successfully in the industry for talented engineers 

and college students. 
FY 2003 Annual Program Performance Report Page A-27

Policy Initiative: Implement improved financial collections systems. 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. 

FY00: 

3⁄4 Systems requirements and draft rule making 

completed. 

FY01: 

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.

FY02: 

3⁄4 The FCC replaced the “publish and pay” system 

with a new revenue system accounts receivable 

module that was implemented September 2002. 

This module allowed direct billing of licensees. 

3⁄4 The FCC exceeded the 25% goal of direct billing 

of regulatory fees for all licensees. The FCC 

identified candidates for billing at least 25% of 

expected revenue for FY02. $107.7 million in 

actual assessments were billed comprising 49.2% 

of the total collection of $218.8 million revenue 

for FY02.

3⁄4 The FCC completed modifications to the 

collections system to allow for payment of fees for 

multiple licenses in a single transaction.

3⁄4 An online payment system was developed. 646 

regulatory fee payments, representing 55% of all 

monies collected, were received online.
FY 2003 Annual Program Performance Report Page A-28

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 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 The FCC is registered with FebBizOpps. An ECommerce 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.

FY02: 

3⁄4 Effective October 2001, all competitive 

solicitations were available online at 

www.FedBizOpps.gov.

Policy Initiative: Implement performance-based contracting. 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 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%. 

FY00: 

3⁄4 9 performance-based contracts in place. 

FY01: 

3⁄4 11 performance-based contracts in place. 

FY02: 

3⁄4 14 performance-based contracts in place, with an 

22% increase in the number of performancebased contracts in excess of $25,000. 

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 

FY99-01: 

3⁄4 No goals. 

FY02: 

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

FY00 FAIR Act Inventory. 

FY02: 

3⁄4 On August 16, 2002, the FY 2002 FAIR Act 

Inventory was submitted to the Office of 

Management and Budget providing an inventory of 

commercial and inherently governmental activities. 

In FY 2002, functions of the library, which had 

been identified on our 2001 inventory, were 

contracted out.