[Federal Register Volume 65, Number 191 (Monday, October 2, 2000)]
[Proposed Rules]
[Pages 58721-58726]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24636]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[CC Docket No. 96-45; FCC 00-332]


Federal-State Joint Board on Universal Service: Promoting 
Deployment and Subscribership in Unserved and Underserved Areas, 
Including Tribal and Insular Areas

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rules.

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SUMMARY: In this document, the Commission seeks additional comment on 
how to extend the enhanced Lifeline and Link Up measures to qualifying 
low-income consumers living in areas or communities that are ``near 
reservations.'' Specifically, the Commission seeks comment on how to 
define geographic areas that are adjacent to the reservations, 
consistent with our

[[Page 58722]]

goal of targeting enhanced Lifeline and Link Up support to the most 
underserved areas of our Nation.

DATES: Comments are due on or before October 12, 2000 and reply 
comments are due on or before October 27, 2000.

FOR FURTHER INFORMATION CONTACT: Paul Garnett, Attorney, Common Carrier 
Bureau, Accounting Policy Division, (202) 418-7400.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Further Notice of Proposed Rulemaking in CC Docket No. 96-45 released 
on August 31, 2000. The full text of this document is available for 
public inspection during regular business hours in the FCC Reference 
Center, Room CY-A257, 445 Twelfth Street, S.W., Washington, D.C., 
20554.

I. Introduction

    1. We stay the implementation of enhanced Lifeline and Link Up 
support for low-income consumers living near reservations pending 
resolution of the issues discussed in the attached Further Notice of 
Proposed Rulemaking (FNPRM). In this document, we seek additional 
comment on how to extend the enhanced Lifeline and Link Up measures to 
qualifying low-income consumers living in areas or communities that are 
``near reservations.'' Specifically, we seek comment on how to define 
geographic areas that are adjacent to the reservations, consistent with 
our goal of targeting enhanced Lifeline and Link Up support to the most 
underserved areas of our Nation. Finally, as described in greater 
detail, we extend until September 22, 2000, the date by which carriers 
may file data in order to receive support during the calendar year 2000 
for enhanced Lifeline and Link Up services provided during the fourth 
quarter 2000.

II. Further Notice of Proposed Rulemaking

    2. In this document, we seek additional comment on how to extend 
the enhanced Lifeline and Link Up measures to qualifying low-income 
consumers living in areas or communities that are near reservations. 
Specifically, we seek comment on how to define geographic areas that 
are adjacent to the reservations or are otherwise a part of the 
reservation's community of interest, in a manner that is consistent 
with our goal of targeting enhanced Lifeline and Link Up support to the 
most underserved segments of the Nation. We ask commenters to address 
whether the targeting of enhanced Lifeline and Link Up support to areas 
or communities that are ``near reservations,'' as that term is defined 
in section 20.1(r) of the BIA regulations, is an effective way to 
target support to the most isolated, impoverished, and underserved 
regions of the country. We also invite comment on alternative ways of 
defining the geographic areas that are near reservations to ensure that 
enhanced Lifeline and Link Up support is targeted to qualifying low-
income consumers living in areas adjacent to, or near, reservations 
that share many of the same characteristics as the reservations. In 
addition, to the extent that using the BIA definition of ``near 
reservations'' to target support as intended in the Twelfth Report and 
Order, 65 FR 47941 (August 14, 2000), is not effective, we seek comment 
generally on how we might achieve our goal of serving geographically 
isolated, impoverished areas that are characterized by low 
subscribership.
    3. Commenters are encouraged to provide detailed information to 
assist us in determining how enhanced Lifeline and Link Up support 
should be targeted. Such information should include the population of 
the geographical area, the number of income-eligible subscribers, the 
distance of each area from the nearest reservation, whether there is 
any legal recognition of that area by the BIA, whether the area 
includes or is part of a Metropolitan Statistical Area, and the level 
of telephone subscribership in the area. We especially seek input on 
these issues from the state members of the Federal-State Joint Board on 
Universal Service, and encourage the participation of tribal 
authorities and state commissions.

III. Procedural Matters

A. Paperwork Reduction Act

    4. The action contained herein has been analyzed with respect to 
the Paperwork Reduction Act of 1995 (PRA) and does not impose modified 
reporting and/or recordkeeping requirements or burdens on the public.

B. Initial Regulatory Flexibility Analysis

    5. As required by the Regulatory Flexibility Act (RFA), the 
Commission has prepared this Initial Regulatory Flexibility Analysis 
(IRFA) of the possible significant economic impact on small entities by 
the policies and rules proposed in this document. Written public 
comments are requested on this IRFA. Comments must be identified as 
responses to the IRFA and must be filed by the deadlines for comments 
on the FNPRM. The Commission will send a copy of the FNPRM, including 
this IRFA, to the Chief Counsel for Advocacy of the Small Business 
Administration. In addition, the FNPRM and IRFA (or summaries thereof) 
will be published in the Federal Register.
1. Need for, and Objectives of, the Proposed Rules
    6. This document is being issued in order to ensure that enhanced 
Lifeline and Link Up support is targeted to the most underserved 
segments of our Nation. The Commission issues the Further Notice of 
Proposed Rulemaking contained herein as a part of its implementation of 
the Act's mandate that ``[c]onsumers in all regions of the Nation . . . 
have access to telecommunications and information services . . ..'' The 
FNPRM seeks comment on how to define geographic areas that are adjacent 
to the reservations or are otherwise a part of the reservation's 
community of interest, in a manner that is consistent with our goal of 
targeting enhanced Lifeline and Link Up support to the most underserved 
segments of the Nation. The FNPRM also seeks comment on whether the 
targeting of enhanced Lifeline and Link Up support to areas or 
communities that are ``near reservations,'' as that term is defined in 
section 20.1(r) of the BIA regulations, is an effective way to target 
support to the most isolated, impoverished, and underserved regions of 
the country. In addition, the FNPRM seeks comment on alternative ways 
of defining the geographic areas that are near reservations to ensure 
that enhanced Lifeline and Link Up support is targeted to qualifying 
low-income consumers living in areas adjacent to, or near, reservations 
that share many of the same characteristics as the reservations. Our 
objective is to fulfill section 254's mandate that ``all regions of the 
Nation . . . have access to telecommunications.''
2. Legal Basis
    7. The legal basis for this FNPRM is contained in sections 1-4, 
201-205, 254, 303(r), and 403 of the Communications Act of 1934, as 
amended by the Telecommunications Act of 1996, 47 U.S.C. 1-4, 201-205, 
254, 303(r), and 403.
3. Description and Estimate of the Number of Small Entities To Which 
Rules Will Apply
    8. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules. The RFA generally defines the term 
``small entity'' as having the same meaning as the terms

[[Page 58723]]

``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A small business concern is one that: (1) Is independently owned 
and operated; (2) is not dominant in its field of operation; and (3) 
satisfies any additional criteria established by the Small Business 
Administration (SBA). A small organization is generally ``any not-for-
profit enterprise which is independently owned and operated and is not 
dominant in its field.'' Nationwide, as of 1992, there were 
approximately 275,801 small organizations. ``Small governmental 
jurisdiction'' generally means ``governments of cities, counties, 
towns, townships, villages, school districts, or special districts, 
with a population of less than 50,000.'' As of 1992, there were 
approximately 85,006 such jurisdictions in the United States. This 
number includes 38,978 counties, cities, and towns; of these, 37,566, 
or 96 percent, have populations of fewer than 50,000. The Census Bureau 
estimates that this ratio is approximately accurate for all 
governmental entities. Thus, of the 85,006 governmental entities, we 
estimate that 81,600 (91 percent) are small entities. The new rules 
proposed in this FNPRM may affect all providers of interstate 
telecommunications and interstate telecommunications services. We 
further describe and estimate the number of small business concerns 
that may be affected by the rules proposed in this FNPRM.
    9. The SBA has defined a small business for Standard Industrial 
Classification (SIC) categories 4812 (Radiotelephone Communications) 
and 4813 (Telephone Communications, Except Radiotelephone) to be small 
entities when they have no more than 1,500 employees. We first discuss 
the number of small telephone companies falling within these SIC 
categories, then attempt to refine further those estimates to 
correspond with the categories of telecommunications companies that are 
commonly used under our rules.
    10. The most reliable source of information regarding the total 
numbers of common carrier and related providers nationwide, including 
the numbers of commercial wireless entities, appears to be data the 
Commission publishes annually in its Trends in Telephone Service 
report. According to data in the most recent report, there are 4,144 
interstate carriers. These carriers include, inter alia, incumbent 
local exchange carriers, competitive local exchange carriers, 
competitive access providers, interexchange carriers, other wireline 
carriers and service providers (including shared-tenant service 
providers and private carriers), operator service providers, pay 
telephone operators, providers of telephone toll service, wireless 
carriers and services providers, and resellers.
    11. We have included small incumbent LECs in this present RFA 
analysis. As noted, a ``small business'' under the RFA is one that, 
inter alia, meets the pertinent small business size standard (e.g., a 
telephone communications business having 1,500 or fewer employees), and 
``is not dominant in its field of operation.'' The SBA's Office of 
Advocacy contends that, for RFA purposes, small incumbent LECs are not 
dominant in their field of operation because any such dominance is not 
``national'' in scope. We have therefore included small incumbent LECs 
in this RFA analysis, although we emphasize that this RFA action has no 
effect on Commission analyses and determinations in other, non-RFA 
contexts.
    12. Total Number of Telephone Companies Affected. The United States 
Bureau of the Census (``the Census Bureau'') reports that, at the end 
of 1992, there were 3,497 firms engaged in providing telephone 
services, as defined therein, for at least one year. This number 
contains a variety of different categories of carriers, including local 
exchange carriers, interexchange carriers, competitive access 
providers, cellular carriers, mobile service carriers, operator service 
providers, pay telephone operators, PCS providers, covered SMR 
providers, and resellers. It seems certain that some of those 3,497 
telephone service firms may not qualify as small entities or small 
incumbent LECs because they are not ``independently owned and 
operated.'' For example, a PCS provider that is affiliated with an 
interexchange carrier having more than 1,500 employees would not meet 
the definition of a small business. It seems reasonable to conclude, 
therefore, that fewer than 3,497 telephone service firms are small 
entity telephone service firms or small incumbent LECs that may be 
affected by the rules proposed in this FNPRM.
    13. Wireline Carriers and Service Providers. SBA has developed a 
definition of small entities for telephone communications companies 
other than radiotelephone companies. The Census Bureau reports that 
there were 2,321 such telephone companies in operation for at least one 
year at the end of 1992. According to SBA's definition, a small 
business telephone company other than a radiotelephone company is one 
employing no more than 1,500 persons. All but 26 of the 2,321 non-
radiotelephone companies listed by the Census Bureau were reported to 
have fewer than 1,000 employees. Thus, even if all 26 of those 
companies had more than 1,500 employees, there would still be 2,295 
non-radiotelephone companies that might qualify as small entities or 
small incumbent LECs. Although it seems certain that some of these 
carriers are not independently owned and operated, we are unable at 
this time to estimate with greater precision the number of wireline 
carriers and service providers that would qualify as small business 
concerns under SBA's definition. Consequently, we estimate that there 
are fewer than 2,295 small entity telephone communications companies 
other than radiotelephone companies that may be affected by the rules 
proposed in this FNPRM.
    14. Local Exchange Carriers, Interexchange Carriers, Competitive 
Access Providers, Operator Service Providers, and Resellers. Neither 
the Commission nor SBA has developed a definition particular to small 
local exchange carriers (LECs), interexchange carriers (IXCs), 
competitive access providers (CAPs), operator service providers (OSPs), 
or resellers. The closest applicable definition for these carrier-types 
under SBA rules is for telephone communications companies other than 
radiotelephone (wireless) companies. The most reliable source of 
information regarding the number of these carriers nationwide of which 
we are aware appears to be the data that we collect annually in 
connection with the Telecommunications Relay Service (TRS). According 
to our most recent data, there are 1,348 incumbent LECs, 212 CAPs and 
competitive LECs, 171 IXCs, 24 OSPs, 388 toll resellers, and 54 local 
resellers. Although it seems certain that some of these carriers are 
not independently owned and operated, or have more than 1,500 
employees, we are unable at this time to estimate with greater 
precision the number of these carriers that would qualify as small 
business concerns under SBA's definition. Consequently, we estimate 
that there are fewer than 1,348 incumbent LECs, 212 CAPs and 
competitive LECs, 171 IXCs, 24 OSPs, 388 toll resellers, and 54 local 
resellers that may be affected by the rules proposed in this FNPRM.
    15. Wireless (Radiotelephone) Carriers. SBA has developed a 
definition of small entities for radiotelephone (wireless) companies. 
The Census Bureau reports that there were 1,176 such companies in 
operation for at least one year at the end of 1992. According to SBA's 
definition, a small

[[Page 58724]]

business radiotelephone company is one employing no more than 1,500 
persons. The Census Bureau also reported that 1,164 of those 
radiotelephone companies had fewer than 1,000 employees. Thus, even if 
all of the remaining 12 companies had more than 1,500 employees, there 
would still be 1,164 radiotelephone companies that might qualify as 
small entities if they are independently owned and operated. Although 
it seems certain that some of these carriers are not independently 
owned and operated, we are unable at this time to estimate with greater 
precision the number of radiotelephone carriers and service providers 
that would qualify as small business concerns under SBA's definition. 
Consequently, we estimate that there are fewer than 1,164 small entity 
radiotelephone companies that may be affected by the rules proposed in 
this FNPRM.
    16. Cellular, PCS, SMR and Other Mobile Service Providers. In an 
effort to further refine our calculation of the number of 
radiotelephone companies that may be affected by the rules proposed 
herein, we consider the data that we collect annually in connection 
with the TRS for the subcategories Wireless Telephony (which includes 
Cellular, PCS, and SMR) and Other Mobile Service Providers. Neither the 
Commission nor the SBA has developed a definition of small entities 
specifically applicable to these broad subcategories, so we will 
utilize the closest applicable definition under SBA rules--which, for 
both categories, is for telephone companies other than radiotelephone 
(wireless) companies. To the extent that the Commission has adopted 
definitions for small entities providing PCS and SMR services, we 
discuss those definitions. According to our most recent TRS data, 808 
companies reported that they are engaged in the provision of Wireless 
Telephony services and 23 companies reported that they are engaged in 
the provision of Other Mobile Services. Although it seems certain that 
some of these carriers are not independently owned and operated, or 
have more than 1,500 employees, we are unable at this time to estimate 
with greater precision the number of Wireless Telephony Providers and 
Other Mobile Service Providers, except as described, that would qualify 
as small business concerns under SBA's definition. Consequently, we 
estimate that there are fewer than 808 small entity Wireless Telephony 
Providers and fewer than 23 small entity Other Mobile Service Providers 
that might be affected by the rules proposed in this FNPRM.
    17. Broadband PCS Licensees. The broadband PCS spectrum is divided 
into six frequency blocks designated A through F, and the Commission 
has held auctions for each block. The Commission defined ``small 
entity'' for Blocks C and F as an entity that has average gross 
revenues of less than $40 million in the three previous calendar years. 
For Block F, an additional classification for ``very small business'' 
was added, and is defined as an entity that, together with its 
affiliates, has average gross revenues of not more than $15 million for 
the preceding three calendar years. These regulations defining ``small 
entity'' in the context of broadband PCS auctions have been approved by 
SBA. No small businesses within the SBA-approved definition bid 
successfully for licenses in Blocks A and B. There were 90 winning 
bidders that qualified as small entities in the Block C auctions. A 
total of 93 small and very small business bidders won approximately 40 
percent of the 1,479 licenses for Blocks D, E, and F. However, licenses 
for Blocks C through F have not been awarded fully, therefore there are 
few, if any, small businesses currently providing PCS services. Based 
on this information, we estimate that the number of small broadband PCS 
licenses will include the 90 winning C Block bidders and the 93 
qualifying bidders in the D, E, and F blocks, for a total of 183 small 
PCS providers as defined by SBA and the Commissioner's auction rules.
    18. SMR Licensees. Pursuant to Sec. 90.814(b)(1) of the 
Commission's rules, the Commission has defined ``small entity'' in 
auctions for geographic area 800 MHz and 900 MHz SMR licenses as a firm 
that had average annual gross revenues of less than $15 million in the 
three previous calendar years. The definition of a ``small entity'' in 
the context of both 800 MHz and 900 MHz SMR has been approved by the 
SBA. Any rules proposed in this proceeding may apply to SMR providers 
in the 800 MHz and 900 MHz bands that either hold geographic area 
licenses or have obtained extended implementation authorizations. We do 
not know how many firms provide 800 MHz or 900 MHz geographic area SMR 
service pursuant to extended implementation authorizations, nor how 
many of these providers have annual revenues of less than $15 million. 
We assume, for purposes of this IRFA, that all of the extended 
implementation authorizations may be held by small entities, that may 
be affected by the decisions and rule changes adopted in this 
proceeding.
    19. The Commission recently held auctions for geographic area 
licenses in the 900 MHz SMR band. There were 60 winning bidders who 
qualified as small entities in the 900 MHz auction. Based on this 
information, we estimate that the number of geographic area SMR 
licensees that may be affected by the decisions and rules in the order 
and order on reconsideration includes these 60 small entities. No 
auctions have been held for 800 MHz geographic area SMR licenses. 
Therefore, no small entities currently hold these licenses. A total of 
525 licenses will be awarded for the upper 200 channels in the 800 MHz 
geographic area SMR auction. The Commission, however, has not yet 
determined how many licenses will be awarded for the lower 230 channels 
in the 800 MHz geographic area SMR auction. There is no basis, 
moreover, on which to estimate how many small entities will win these 
licenses. Given that nearly all radiotelephone companies have fewer 
than 1,000 employees and that no reliable estimate of the number of 
prospective 800 MHz licensees can be made, we estimate, for purposes of 
this IRFA, that all of the licenses may be awarded to small entities, 
some of which may be affected by the rules proposed in this FNPRM.
    20. 220 MHz Radio Service--Phase I Licensees. The 220 MHz service 
has both Phase I and Phase II licenses. There are approximately 1,515 
such non-nationwide licensees and four nationwide licensees currently 
authorized to operate in the 220 MHz band. The Commission has not 
developed a definition of small entities specifically applicable to 
such incumbent 220 MHz Phase I licensees. To estimate the number of 
such licensees that are small businesses, we apply the definition under 
the SBA rules applicable to Radiotelephone Communications companies. 
According to the Bureau of the Census, only 12 radiotelephone firms out 
of a total of 1,178 such firms which operated during 1992 had 1,000 or 
more employees. Therefore, if this general ratio continues to 1999 in 
the context of Phase I 220 MHz licensees, we estimate that nearly all 
such licensees are small businesses under the SBA's definition.
    21. 220 MHz Radio Service--Phase II Licensees. The Phase II 220 MHz 
service is a new service, and is subject to spectrum auctions. In the 
220 MHz Third Report and Order, 62 FR 16004 (April 3, 1997), we adopted 
criteria for defining small businesses and very small businesses for 
purposes of determining their eligibility for special

[[Page 58725]]

provisions such as bidding credits and installment payments. We have 
defined a small business as an entity that, together with its 
affiliates and controlling principals, has average gross revenues not 
exceeding $15 million for the preceding three years. Additionally, a 
very small business is defined as an entity that, together with its 
affiliates and controlling principals, has average gross revenues that 
are not more than $3 million for the preceding three years. An auction 
of Phase II licenses commenced on September 15, 1998, and closed on 
October 22, 1998. 908 licenses were auctioned in 3 different-sized 
geographic areas: three nationwide licenses, 30 Regional Economic Area 
Group Licenses, and 875 Economic Area (EA) Licenses. Of the 908 
licenses auctioned, 693 were sold. Companies claiming small business 
status won: One of the Nationwide licenses, 67 percent of the Regional 
licenses, and 54 percent of the EA licenses. As of January 22, 1999, 
the Commission announced that it was prepared to grant 654 of the Phase 
II licenses won at auction. A reauction of the remaining, unsold 
licenses was completed on June 30, 1999, with 16 bidders winning 222 of 
the Phase II licenses. As a result, we estimate that 16 or fewer of 
these final winning bidders are small or very small businesses.
    22. Narrowband PCS. The Commission has auctioned nationwide and 
regional licenses for narrowband PCS. There are 11 nationwide and 30 
regional licensees for narrowband PCS. The Commission does not have 
sufficient information to determine whether any of these licensees are 
small businesses within the SBA-approved definition for radiotelephone 
companies. At present, there have been no auctions held for the major 
trading area (MTA) and basic trading area (BTA) narrowband PCS 
licenses. The Commission anticipates a total of 561 MTA licenses and 
2,958 BTA licenses will be awarded by auction. Such auctions have not 
yet been scheduled, however. Given that nearly all radiotelephone 
companies have no more than 1,500 employees and that no reliable 
estimate of the number of prospective MTA and BTA narrowband licensees 
can be made, we assume, for purposes of this IRFA, that all of the 
licenses will be awarded to small entities, as that term is defined by 
the SBA.
    23. Rural Radiotelephone Service. The Commission has not adopted a 
definition of small entity specific to the Rural Radiotelephone 
Service. A significant subset of the Rural Radiotelephone Service is 
the Basic Exchange Telephone Radio Systems (BETRS). We will use the 
SBA's definition applicable to radiotelephone companies, i.e., an 
entity employing no more than 1,500 persons. There are approximately 
1,000 licensees in the Rural Radiotelephone Service, and we estimate 
that almost all of them qualify as small entities under the SBA's 
definition.
    24. Air-Ground Radiotelephone Service. The Commission has not 
adopted a definition of small entity specific to the Air-Ground 
Radiotelephone Service. Accordingly, we will use the SBA's definition 
applicable to radiotelephone companies, i.e., an entity employing no 
more than 1,500 persons. There are approximately 100 licensees in the 
Air-Ground Radiotelephone Service, and we estimate that almost all of 
them qualify as small entities under the SBA definition.
    25. Fixed Microwave Services. Microwave services include common 
carrier, private-operational fixed, and broadcast auxiliary radio 
services. At present, there are approximately 22,015 common carrier 
fixed licensees and 61,670 private operational-fixed licensees and 
broadcast auxiliary radio licensees in the microwave services. The 
Commission has not yet defined a small business with respect to 
microwave services. For purposes of this IRFA, we will utilize the 
SBA's definition applicable to radiotelephone companies--i.e., an 
entity with no more than 1,500 persons. We estimate, for this purpose, 
that all of the Fixed Microwave licensees (excluding broadcast 
auxiliary licensees) would qualify as small entities under the SBA 
definition for radiotelephone companies.
    26. Wireless Communications Services. This service can be used for 
fixed, mobile, radio location and digital audio broadcasting satellite 
uses. The Commission defined ``small business'' for the wireless 
communications services (WCS) auction as an entity with average gross 
revenues of $40 million for each of the three preceding years, and a 
``very small business'' as an entity with average gross revenues of $15 
million for each of the three preceding years. The Commission auctioned 
geographic area licenses in the WCS service. In the auction, there were 
seven winning bidders that qualified as very small business entities, 
and one that qualified as a small business entity. We conclude that the 
number of geographic area WCS licensees that may be affected by the 
rules proposed in this FNPRM includes these eight entities.
    27. Multipoint Distribution Systems (MDS). The Commission has 
defined ``small entity'' for the auction of MDS as an entity that, 
together with its affiliates, has average gross annual revenues that 
are not more than $40 million for the preceding three calendar years. 
This definition of a small entity in the context of MDS auctions has 
been approved by the SBA. The Commission completed its MDS auction in 
March 1996 for authorizations in 493 basic trading areas (BTAs). Of 67 
winning bidders, 61 qualified as small entities.
    28. MDS is also heavily encumbered with licensees of stations 
authorized prior to the auction. The SBA has developed a definition of 
small entities for pay television services, which includes all such 
companies generating $11 million or less in annual receipts. This 
definition includes multipoint distribution systems, and thus applies 
to MDS licensees and wireless cable operators which did not participate 
in the MDS auction. Information available to us indicates that there 
are 832 of these licensees and operators that do not generate revenue 
in excess of $11 million annually. Therefore, for purposes of this 
IRFA, we find there are approximately 892 small MDS providers as 
defined by the SBA and the Commission's auction rules, some which may 
be affected by the rules proposed in this FNPRM.
4. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements
    29. The measures under consideration in this FNPRM may, if adopted, 
result in additional reporting or other compliance requirements. For 
example, changes to the geographic area within which enhanced Lifeline 
and Link Up support is directed may, if adopted, result in increased 
federal universal service support obligations for telecommunications 
carriers required to contribute to federal universal service support 
mechanisms. A modified definition of ``near reservation'' also may 
impact reporting requirements for carriers eligible to receive enhanced 
Lifeline and Link Up support. If, for example, the definition of ``near 
reservation'' is expanded to include a larger geographic area, eligible 
carriers may be required to submit data regarding an increased number 
of qualifying low-income consumers. Such increased reporting 
requirements would be offset by increased opportunities for receipt of 
enhanced Lifeline and Link Up support.
5. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered
    30. The RFA requires an agency to describe any significant 
alternatives that

[[Page 58726]]

it has considered in reaching its proposed approach, which may include 
the following four alternatives (among others): (1) The establishment 
of differing compliance and reporting requirements or timetables that 
take into account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance or 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or part thereof, for small entities.
    31. With respect to the possibility of increased universal service 
contribution requirements, the primary alternative to the proposals 
contained in the FNPRM, which would minimize the economic impact on 
small entities, would be to determine not to increase universal service 
support obligations. We observe that section 254(d) of the Act requires 
that all telecommunications carriers contribute to the federal 
universal service support mechanisms on ``an equitable and 
nondiscriminatory basis.'' As a result, the Commission may not propose 
alternatives specifically designed to minimize the economic impact on 
small entities. We note, however, that the Commission has established a 
de minimis exception from universal service contribution obligations 
for carriers whose interstate end-user telecommunications revenues in a 
given year are less than $10,000. This exception should lessen the 
burden on certain telecommunications carriers that meet the definition 
of small entities.
    32. With respect to the additional reporting and compliance 
requirements for carriers that are eligible to receive enhanced 
Lifeline and Link Up support, the Commission does not seek comment on 
whether an exception for carriers meeting the definition of small 
entities is appropriate. In setting the standard for what services 
carriers designated as eligible telecommunications carriers must 
provide, the Commission has established a uniform, nationwide standard 
for the services to which all Americans should have access. The 
Commission's rules relating to the receipt of enhanced Lifeline and 
Link Up support apply equally to all eligible telecommunications 
carriers providing services to qualifying low-income consumers. The 
FNPRM is consistent with these standards. Individual carriers, however, 
may obtain a waiver of the Commission's rules if good cause is shown 
therefor.
6. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules
    33. None.

C. Comment Dates and Filing Procedures

    34. We invite comment on the issues and questions set forth in the 
Further Notice of Proposed Rulemaking and Initial Regulatory 
Flexibility Analysis contained herein. Pursuant to applicable 
procedures set forth in Sec. 1.415 and Sec. 1.419 of the Commission's 
rules, interested parties may comment on or before October 12, 2000, 
and reply comment on or before October 27, 2000. Comments may be filed 
using the Commission's Electronic Comment Filing System (ECFS) or by 
filing paper copies. See Electronic Filing of Documents in Rulemaking 
Proceedings, 63 FR 24,121 (1998).
    35. Comments filed through the ECFS can be sent as an electronic 
file via the Internet to http://www.fcc.gov/e-file/ecfs.html>. 
Generally, only one copy of an electronic submission must be filed. If 
multiple docket or rulemaking numbers appear in the caption of this 
proceeding, however, commenters must transmit one electronic copy of 
the comments to each docket or rulemaking number referenced in the 
caption. In completing the transmittal screen, commenters should 
include their full name, Postal Service mailing address, and the 
applicable docket or rulemaking number. Parties may also submit 
electronic comments by Internet e-mail. To receive filing instructions 
for e-mail comments, commenters should send an e-mail to <a href="/cdn-cgi/l/email-protection#aecbcdc8ddeec8cdcd80c9c1d8"><span class="__cf_email__" data-cfemail="e184828792a1878282cf868e97">[email protected]</span></a>, 
and should include the following words in the body of the message, 
``get form your e-mail address>.'' A sample form and directions will be 
sent in reply.
    36. Parties who choose to file by paper must file an original and 
four copies of each filing. If more than one docket or rulemaking 
number appears in the caption of this proceeding, commenters must 
submit two additional copies for each additional docket or rulemaking 
number. All filings must be sent to the Commission's Secretary, Magalie 
Roman Salas, Office of the Secretary, Federal Communications 
Commission, 445 12th Street, S.W., Washington, D.C. 20554. Parties also 
should send three paper copies of their filing to Sheryl Todd, 
Accounting Policy Division, Common Carrier Bureau, Federal 
Communications Commission, 445 Twelfth Street, S.W., Room 5-B540, 
Washington, D.C. 20554.
    37. Parties who choose to file by paper should also submit their 
comments on diskette to Sheryl Todd, Accounting Policy Division, Common 
Carrier Bureau, Federal Communications Commission, 445 Twelfth Street, 
S.W., Room 5-B540, Washington, D.C. 20554. Such a submission should be 
on a 3.5 inch diskette formatted in an IBM-compatible format using 
Microsoft Word 97 for Windows or a compatible software. The diskette 
should be accompanied by a cover letter and should be submitted in 
``read-only'' mode. The diskette should be clearly labeled with the 
commenter's name, proceeding, including the lead docket number in the 
proceeding (CC Docket No. 96-45), type of pleading (comment or reply 
comment), date of submission, and the name of the electronic file on 
the diskette. The label should also include the following phrase 
(``Disk Copy Not an Original.'') Each diskette should contain only one 
party's pleadings, preferably in a single electronic file. In addition, 
commenters must send diskette copies to the Commission's copy 
contractor, International Transcription Service, Inc., 1231 20th 
Street, N.W., Washington, D.C. 20037.

IV. Ordering Clauses

    38. Pursuant to the authority contained in sections 1-4, 201-205, 
254, 303(r), and 403 of the Communications Act of 1934, as amended, and 
Secs. 1.3 and 1.429(k) of the Commission's rules, this Further Notice 
of Proposed Rulemaking is adopted.
    39. The Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of this Further Notice of 
Proposed Rulemaking, including the Initial Regulatory Flexibility 
Analysis, to the Chief Counsel for Advocacy of the Small Business 
Administration.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 00-24636 Filed 9-29-00; 8:45 am]
BILLING CODE 6712-01-U


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