[Federal Register Volume 65, Number 227 (Friday, November 24, 2000)]
[Proposed Rules]
[Pages 70541-70547]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29870]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 25 and 101

[IB Docket No. 00-203; FCC-00-369]


Partial Band Licensing and Loading Standards for Earth Stations 
in the FSS That Share Spectrum With Terrestrial Services, Blanket 
Licensing for Small Aperture Terminals in the C-Band, Routine Licensing 
of 3.7 Meter Transmit and Receive Stations at C-Band, and Deployment of 
Geostationary-Orbit FSS Earth Stations in the Shared Portion of the Ka-
Band

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: This document proposes rules that will promote more efficient 
use and sharing of the radio spectrum between FSS earth stations and 
terrestrial fixed service stations by requiring the showing of actual 
or planned use of the spectrum when access to that spectrum is denied 
to potential new users. The proposed rules also promote efficient 
sharing of spectrum by requiring the use of previously agreed 
interference analysis models during subsequent frequency coordinations. 
In addition, they are designed to provide wider access to electronic 
commerce in underserved rural areas of America by facilitating the 
deployment of small antenna terminals in C-band satellite networks 
under a single authorization, with prior frequency coordination. 
Finally, this document seeks comment on how to facilitate the 
deployment of GSO FSS earth stations without individual site-by-site 
licensing in the portion of the Ka-band that is shared with terrestrial 
fixed services.

DATES: Submit comments on or before January 8, 2001. Submit reply 
comments on or before February 9, 2001.

FOR FURTHER INFORMATION CONTACT: Edward R. Jacobs, Planning & 
Negotiations Division, International Bureau. (202) 418-0624 or via 
electronic mail: <a href="/cdn-cgi/l/email-protection#a8cdc2c9cbc7cadbe8cecbcb86cfc7de"><span class="__cf_email__" data-cfemail="c8ada2a9aba7aabb88aeababe6afa7be">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rulemaking in IB Docket No. 00-203, adopted October 13, 
2000 and released October 24, 2000. The full text of this Commission 
decision is available for inspection and copying during normal business 
hours in the FCC Reference Center (Room CY-A257) 445 12th Street SW., 
Washington, DC and may also be purchased from the Commission copy 
contractor, International Transcription Services (ITS), Inc., (202) 
857-3800, 1231 20th Street, N.W., Washington, D.C. 20036.

Summary of the Notice of Proposed Rulemaking

    1. In this Notice of Proposed Rulemaking, the Commission considers 
a series of filings concerning the application of our part 25 rules to 
Fixed-Satellite Service (FSS) earth stations in bands shared on a 
primary basis with the terrestrial Fixed Service (FS). Specifically, 
Onsat Network Communications, Inc. (Onsat) petitions for a declaratory 
order that our part 25 rules permit the licensing, under a single 
authorization, of small aperture terminal satellite earth station 
networks in the C-band (3700-4200 MHz and 5925-6425 MHz). These C-band 
small aperture terminal earth station networks, or CSATs, are 
technically similar to the very small aperture terminal earth station 
networks, or VSATs, currently deployed in the Ku-band (11.7-12.2 GHz 
and 14.0-14.5 GHz). The Fixed Wireless Communications Coalition (FWCC) 
petitions for a declaratory ruling regarding partial-band licensing of 
FSS earth stations and a rulemaking to amend part 25 of the 
Commission's rules to set loading requirements. Hughes Network Systems 
(Hughes) seeks consideration of its proposal to deploy geostationary 
orbit FSS earth stations in the shared portion of the Ka-band (17.7-
19.7 GHz and 27.5-29.5 GHz). We address all but Onsat's petition for 
waiver of Sec. 25.212(d) of the Commission's rules regarding routine 
licensing of 3.7 meter transmit and receive earth stations at C-band. 
Specifically, we deny Onsat's petition for declaratory order, but 
propose to amend our rules to permit the licensing, under a single 
authorization and with prior coordination, of a limited class of small 
aperture terminal earth station networks in the C-band to communicate 
with geostationary satellites. We will issue a separate licensing 
decision on the specific application for the Onsat system that Onsat 
filed several months after its Petition for Declaratory Order. We deny 
FWCC's request for a declaratory ruling requiring partial-band 
licensing of FSS earth stations. We propose, however, to adopt rules 
directed at addressing FWCC's concerns about effective and equitable 
use of spectrum in bands shared by the FS and FSS. Finally, we seek 
comment on, and alternatives to, the recent ex parte pleading filed by 
Hughes in the 18 GHz Proceeding, concerning the proposed deployment of 
earth stations for geostationary satellite orbit (GSO) FSS systems in 
the shared portion of the Ka-band without individual site-by-site 
licensing.
    2. The FWCC Petitions. On May 5, 1999, FWCC filed a Request for 
Declaratory Ruling and Petition for Rulemaking (together, ``FWCC 
Petitions'') asking the Commission to impose various conditions on FSS 
earth stations in bands that are shared on a co-primary basis with FS 
operations. FWCC's Petitions reference the following bands: 3700-4200, 
5925-6425 and 6425-7125 MHz and 10.7-11.7, 12.7-13.25, 17.7-19.7, and 
27.5-29.5 GHz. The Fixed-Satellite Service is a radiocommunication 
service between earth stations at given positions, when one or more 
satellites are used; the FSS also may include feeder links for other 
space radiocommunication services. The terrestrial fixed service (FS) 
is a radiocommunication service between fixed points. FWCC states that 
its proposals seek to maximize efficient use of the radio spectrum for 
both satellite and point-to-point terrestrial fixed operations.
    3. FWCC avers that, while parts 25 and 101 of the Commission's 
rules provide for sharing on a co-primary basis in certain radio 
spectrum bands by the FSS and FS, in reality sharing has

[[Page 70542]]

not occurred on an equitable basis. Rather, FWCC contends that, in 
actual practice, band sharing has been on terms disadvantageous to the 
FS. FWCC alleges that satellite earth station operators receive 
preferential access to shared spectrum because: (1) The Commission 
licenses earth stations for the entire allocated band and with no 
loading requirements, while point-to-point terrestrial operations are 
limited to frequencies actually needed and are subject to stringent 
spectrum efficiency requirements, and (2) the Commission licenses earth 
stations for all azimuths and thus earth stations can deny coordination 
to terrestrial stations. Thus, FWCC requests a declaratory ruling that 
would require FSS operators to demonstrate ``actual need'' for the 
spectrum requested at the time of licensing. Specifically, FWCC 
proposes that the Commission change its policy of authorizing earth 
stations to use the entire pertinent frequency bands and instead 
require that an FSS earth station using spectrum shared with point-to-
point terrestrial services be licensed to use no more than twice the 
amount of spectrum for which it is able to demonstrate ``actual need.'' 
FWCC also includes a parallel request for a rule that would require FSS 
earth station applicants to show demonstrated need for the spectrum 
they seek.
    4. FWCC also petitions, pursuant to Sec. 1.401 of the Commission's 
rules, for amendments to part 25 of the Commission's rules that would 
require FSS earth stations licensed for more than minimal amounts of 
spectrum shared with FS operators to meet minimum loading standards. 
Further, FWCC proposes to require all FSS earth stations to accept 
interference from new terrestrial facilities on the same basis as they 
accept any interference in the initial coordination. FWCC states that 
the objective of these rule changes would be the adoption of spectrum 
management standards that would achieve in practice the ``co-equal'' 
sharing specified in parts 25 and 101 of the Commission's rules.
    5. Numerous satellite and earth station licensees, users of these 
services, and industry associations representing the satellite industry 
oppose the FWCC Petitions. The Fixed Point-to-Point Section of the 
Wireless Communications Division of the Telecommunications Industry 
Association (TIA FS/WCD) filed reply comments supporting FWCC's 
requests.
    6. Upon review of the record, we conclude that FWCC raises issues 
meriting further consideration. We propose specific rules to address 
the concerns of the Fixed Service community, and we seek comment as to 
whether the evolving requirements of both satellite and terrestrial 
systems necessitate a further revision of our current policies and 
rules to ensure efficient and equitable use of the radio spectrum in 
bands shared on a co-primary basis by the FSS and FS. We seek comment 
on the extent of the FS and FSS sharing problem and propose rules on 
the issues of loading and interference coordination. On the issue of 
demonstrating actual need, we deny FWCC's request for a declaratory 
ruling and its parallel request to amend Sec. 25.130 of the 
Commission's rules to limit the amount of spectrum the Commission would 
license to FSS earth stations to no more than twice the amount of 
spectrum for which the licensee has demonstrated ``actual need.'' We 
do, however, incorporate into the proposed rules the related concept of 
a ``demonstrated use'' requirement triggered by the denial by an FSS 
operator of an FS applicant's request to coordinate spectrum. We 
believe that this proposal is a more effective and equitable approach 
for addressing the concerns FWCC has raised in its pleadings.
    7. In particular, we propose to amend Sec. 25.203 of the 
Commission's rules to require an FSS earth station that has been 
licensed to operate in C- or Ku-band shared frequencies for 24 months 
or longer to demonstrate, in response to the denial of a request of an 
FS applicant to coordinate spectrum, that the FSS earth station denying 
coordination is using, has recently used, or has imminent plans to use 
the requested spectrum. If the FSS earth station licensee cannot make 
such a demonstration during the coordination, then the FS station may 
be successfully coordinated and the FSS earth station must not cause 
unacceptable interference to, nor is it protected from interference 
from, the FS station on that spectrum in the future. We propose to 
exempt from the rule those FSS earth stations that are licensed for 40 
MHz or less of bandwidth in each direction. At the same time, we 
propose to amend Sec. 101.141 of the Commission's rules to shorten the 
loading period for FS licensees in the C- and Ku-bands from 30 to 24 
months. Modification of the part 25 and 101 rules in this manner would 
give both the FSS and FS licensees a comparable period of time in which 
to put their spectrum to use before it is susceptible to re-licensing 
to others. We ask for comment as to whether these part 25 and 101 rules 
should apply in other bands where the FSS and FS share spectrum on a 
co-primary basis.
    8. We also propose to amend parts 25 and 101 to require that an FSS 
earth station or FS licensee accepting a particular interference 
analysis model in order to coordinate successfully the location of its 
station must accept use of the same model in subsequent coordinations. 
We propose that these rule changes to parts 25 and 101 would apply 
across all frequency bands where the services share a primary service 
allocation. Further, we propose to amend part 25 such that, if a C- or 
Ku-band FSS earth station licensee, during coordination, accepts a 
level of interference along a set of azimuths recognized to be below 
normally permissible interference objectives, the licensee may not 
subsequently claim protection from interference from future FS 
applicants on those same frequencies within that same set of azimuths. 
We ask for comment as to whether this part 25 rule should apply at 
other bands where the FS and FSS share frequencies on a co-primary 
basis. We further propose that these amended rules would apply to all 
FSS earth stations and FS stations upon the effective date of the 
Report and Order in this proceeding.
    9. The Onsat Petition. On September 10, 1999, Onsat filed a 
Petition for Declaratory Order that Sec. 25.115(c) of the Commission's 
rules permits the licensing of Very Small Aperture Terminal (VSAT) 
satellite earth station networks, under a single authorization and with 
prior coordination, in the C-band. In the same filing, Onsat petitioned 
for a waiver to permit routine licensing of its proposed earth 
stations, which would have an antenna diameter smaller than those 
allowed to be routinely licensed under our existing rules. We will 
evaluate Onsat's particular antenna size waiver request in a separate 
licensing order. We expect to consider later, in an earth station 
streamlining proceeding, the more general issues of what antenna sizes 
and power densities may be licensed routinely under this rule. Onsat 
advocates such licensing of technically identical remote earth station 
terminals to permit operators to configure their C-band systems quickly 
without the expense and administrative effort involved in licensing 
individual earth stations. In support of its petition, Onsat contends 
that its proposal would further Commission objectives with regard to 
universal service and deregulation.
    10. In its petition Onsat argues that small aperture terminal earth 
station technology is less expensive and more flexible than are other 
types of satellite technology, and that these types of earth

[[Page 70543]]

stations can be coordinated easily to prevent interference with 
terrestrial and satellite operations in the C-band. Onsat proposes 
that, if granted a license for an earth station system consisting of a 
hub station and a specified number of technically identical remote 
earth stations, it would submit to the Commission a frequency 
coordination report for each station before placing it into operation.
    11. FWCC initially opposed Onsat's petition on the ground that 
Onsat's proposed service would further exacerbate FS/FSS frequency 
coordination difficulties in the C-band, incorporating by reference a 
copy of its Petitions and arguing that the Commission should not act on 
Onsat's requests unless and until we acted favorably on FWCC's 
Petitions. FWCC later withdrew its opposition after Onsat agreed to 
modify its petition to limit both the amount of C-band spectrum its 
proposed system would use and the number of geostationary satellite 
orbital positions toward which its remote earth stations would be 
directed.
    12. We deny Onsat's petition for a declaratory order, but hereby 
propose rules that include the elements of the Onsat proposal. One of 
the Commission's chief goals is to foster wide access to electronic 
commerce and data through the Internet and other networks, particularly 
in underserved rural areas. We have sought to ensure that multiple 
service providers bring broadband access to all Americans. The service 
proposed by Onsat is an innovative means for bringing high-speed data 
services to rural Americans much more rapidly than might be 
accomplished by wireline or terrestrial wireless service. We propose to 
amend part 25 of the Commission's rules to allow the licensing, under a 
single authorization and with prior coordination, of C-band small 
aperture terminal earth station networks, which we will term ``CSATs'' 
to distinguish these small aperture terminal earth stations from the 
VSAT operations in the Ku-band.
    13. At the same time, we note the concerns of the fixed wireless 
community that the C-band is congested and that authorization of CSATs 
could add to coordination difficulties between the FS and FSS. We 
therefore seek comment on those aspects of CSAT service that affect the 
concerns and issues raised by FWCC. We tentatively conclude that the 
limitations proposed by Onsat in its modified petition are appropriate 
limitations that can be applied generally to other prospective CSAT 
applicants. In a letter from its attorney, Onsat agrees to coordinate 
only 20 MHz at three different orbital slots. Thus, we propose to limit 
CSAT networks to operations using no more than 20 MHz of C-band 
spectrum, and to limit their flexibility to three satellite locations 
within the visible geostationary satellite arc. We further request 
comment on whether our rules should limit this C-band service to rural 
areas, or, alternatively, whether our rules should permit CSAT network 
service wherever frequency coordination allows the installation of 
earth stations. Although certain characteristics of the proposed Onsat 
system are discussed in this NPRM, our focus is on generally-applicable 
policies, procedures and rules for the operation of this type of small 
aperture terminal system in the C-band. Because Onsat only recently 
filed an application to provide this service, we will decide the issue 
of whether to grant the request for the proposed Onsat system in a 
separate licensing order.
    14. The Hughes Ex Parte Letter. We ask for comment on a recent ex 
parte pleading filed by Hughes in the 18 GHz Proceeding (13 FCC Rcd 
19923) concerning the proposed deployment of earth stations for 
geostationary satellite orbit (GSO) FSS systems in the shared portion 
of the Ka-band without individual site-by-site licensing. These shared 
bands are 18.3-18.58 GHz and 29.25-29.5 GHz. In the 18 GHz band, GSO 
FSS (downlink) and FS share portions of the band. In the 28 GHz band, 
GSO FSS (uplink) and NGSO MSS feeder links share portions of the band. 
Hughes contends that the Commission has the power to authorize GSO FSS 
earth stations under a ``blanket'' licensing approach in these shared 
bands. Hughes observes that GSO FSS earth stations would operate in the 
receive mode in the 18 GHz band and thus would not cause interference 
to terrestrial users sharing the band, but could receive harmful 
interference from FS transmissions operating in the band. Hughes urges 
the Commission to allow GSO FSS earth stations to receive signals in 
the 18 GHz shared band, with the option of registering for interference 
protection on a site-by-site basis in accordance with the coordination 
procedures of Secs. 25.203 and 25.251 of the Commission's rules. Hughes 
also suggests that any fees for such registration must be ``consumer-
tolerant'' (such as a single low charge for a batch of 1000 
registrations, e.g., $295). In the 29.25-29.5 GHz band that is shared 
with MSS feeder links, Hughes contends that the provisions of 
Sec. 25.258 of the Commission's rules that deal with intersystem 
coordination and sharing between NGSO MSS feeder link stations and GSO 
FSS services are sufficient to allow the deployment of a large number 
of pre-coordinated GSO FSS earth stations under a single authorization.
    15. We invite comment on whether such deployment of GSO FSS earth 
stations in both the 29.25-29.5 GHz and 18.3-18.58 GHz bands would be 
practicable. In particular, we seek comment on whether Hughes' request 
for an expedited and simplified licensing procedure for satellite user 
earth terminals at Ka-band would raise the same kinds of concerns that 
FWCC has presented in its instant filings. In this regard, we note that 
one of the fundamental tenets of the 18 GHz band segmentation plan was 
to separate services that would be widely deployed. We also seek 
comment on how deployment of a large number of FSS earth stations over 
the entire shared portions of the Ka-band, with specific site location 
information, would impact existing and future MSS feeder link 
operations. If deployment would be practicable, we ask how such a 
licensing procedure could be implemented to ensure that the 
requirements of both the satellite and terrestrial users would be met 
in the 18 GHz band. We invite comment on whether we should apply to the 
portion of the 18 GHz band shared by the FSS and FS each of the rules 
that we propose in this NPRM. We also invite comment on whether, if we 
were to allow deployment in the shared portion of the Ka-band of a 
large number of pre-coordinated GSO FSS earth stations under a single 
authorization, we should limit the earth stations to communications 
with only the specific satellites that are a part of a single satellite 
system. This limitation on the number of satellite locations would be 
similar to our proposal to limit the authorization of CSAT networks in 
the C-band to only three satellite locations. Further, we ask for 
general comment on the issue of registration fees and, specifically, on 
Hughes' proposal that any registration fees for interference protection 
should be in the range of $295 for a batch of 1000 registrants. We also 
invite alternative proposals to achieve the objectives of the Hughes 
proposal, within the scope and overall objectives of this proceeding.

Initial Regulatory Flexibility Analysis

    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 Notice of Proposed Rulemaking. We request 
written public

[[Page 70544]]

comments on this IRFA. Commenters must identify their comments as 
responses to the IRFA and must file the comments by the deadlines for 
comments on the Notice of Proposed Rulemaking provided above in 
paragraphs 103-106. The Commission will send a copy of the Notice of 
Proposed Rulemaking, including this IRFA, to the Chief Counsel for 
Advocacy of the Small Business Administration. See 5 U.S.C. 603(a). In 
addition, the Notice of Proposed Rulemaking and IRFA (or summaries 
thereof) will be published in the Federal Register.

A. Need for, and Objectives of, the Proposed Rules

    We initiate this rulemaking proceeding to obtain comment and 
develop a record on certain proposals in frequency bands shared between 
the space and terrestrial fixed services, as well as to provide for the 
blanket licensing of small aperture antenna terminals in the C-band 
(CSATs). Specifically, this NPRM proposes to amend Sec. 25.203 of the 
Commission's rules to require an earth station licensed for 36 months 
or longer to demonstrate, in response to a request of a terrestrial 
fixed service applicant to coordinate spectrum, that the earth station 
is using, has recently used, or has imminent plans to use the requested 
spectrum. Additionally, the item proposes to amend Sec. 25.203 of the 
Commission's rules to require that an earth station licensee that 
accepted a particular interference analysis model in order to 
successfully coordinate location of its station must accept use of the 
same model in subsequent coordinations. Further, if an earth station 
licensee, during coordination, accepts a level of interference along a 
set of azimuths recognized to be below normally permissible 
interference objectives, the licensee may not subsequently claim 
protection from interference from future terrestrial fixed service 
applicants on those same frequencies within that same set of azimuths. 
With respect to licensing of CSATs in the C-band, we propose to amend 
Sec. 25.115 of the Commission's rules to model CSAT licensing 
procedures on the streamlined procedure successfully used since 1992 
for licensing small earth stations to GTE Spacenet in the C-band. 
Additionally, the proposed rule changes will require CSAT applicants in 
the C-band to complete frequency coordination for each individual earth 
station antenna, but will allow blanket licensing for a system of 
technically-identical earth stations so coordinated, with simplified 
reporting to the Commission. These proposals will facilitate the 
efficient and equitable use of the shared radio spectrum by satellite 
and terrestrial fixed service operators through a modification of the 
coordination and licensing procedures for earth station licensees. 
These proposals will promote efficient use of the spectrum shared 
between the satellite and terrestrial services, and will allow the 
efficient introduction of new satellite technologies that will provide 
wide access to electronic commerce in underserved, rural areas of 
America.

B. Legal Basis

    The proposed action is authorized under sections 1, 4(i), 4(j), 
301, and 303 of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 154(i), 154(j), 301, and 303.

C. Description and Estimate of the Number of Small Entities to Which 
the Proposed Rules May Apply

    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, if adopted. The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``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 which: (1) Is independently owned 
and operated; (2) is not dominant in its field of operation; and (3) 
satisfies any additional criteria established by the Small Business 
Administration (SBA). 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. Below, we further 
describe and estimate the number of small entity licensees that may be 
affected by the proposed rules, if adopted.
1. Cable Services
    The SBA has developed a definition of small entities for cable and 
other pay television services, which includes all such companies 
generating $11 million or less in revenue annually. This definition 
includes cable systems operators, closed circuit television services, 
direct broadcast-satellite services, multipoint distribution systems, 
satellite master antenna systems and subscription television services. 
According to the Census Bureau data from 1992, there were 1,788 total 
cable and other pay television services and 1,423 had less than $11 
million in revenue. The Commission has developed its own definition of 
a small cable system operator for the purposes of rate regulation. 
Under the Commission's rules, a ``small cable company,'' is one serving 
fewer than 400,000 subscribers nationwide. Based on our most recent 
information, we estimate that there were 1,439 cable operators that 
qualified as small cable system operators at the end of 1995. Since 
then, some of those companies may have grown to serve over 400,000 
subscribers, and others may have been involved in transactions that 
caused them to be combined with other cable operators. Consequently, we 
estimate that there are fewer than 1,439 small entity cable system 
operators.
    The Communications Act also contains a definition of a small cable 
system operator, which is ``a cable operator that, directly or through 
an affiliate, serves in the aggregate fewer than 1 percent of all 
subscribers in the United States and is not affiliated with any entity 
or entities whose gross annual revenues in the aggregate exceed 
$250,000,000.'' The Commission has determined that there are 66,690,000 
subscribers in the United States. Therefore, we found that an operator 
serving fewer than 666,900 subscribers shall be deemed a small 
operator, if its annual revenues, when combined with the total annual 
revenues of all of its affiliates, do not exceed $250 million in the 
aggregate. Based on available data, we find that the number of cable 
operators serving 666,900 subscribers or less totals 1,450. We do not 
request nor do we collect information concerning whether cable system 
operators are affiliated with entities whose gross annual revenues 
exceed $250,000,000, and thus are unable at this time to estimate with 
greater precision the number of cable system operators that would 
qualify as small cable operators under the definition in the 
Communications Act.

[[Page 70545]]

2. International Services
    The Commission has not developed a definition of small entities 
applicable to licensees in the international services. Therefore, the 
applicable definition of small entity is generally the definition under 
the SBA rules applicable to Communications Services, Not Elsewhere 
Classified (NEC). This definition provides that a small entity is 
expressed as one with $11.0 million or less in annual receipts. 
According to the Census Bureau, there were a total of 848 
communications services providers, NEC, in operation in 1992, and a 
total of 775 had annual receipts of less than $9.999 million. The 
Census report does not provide more precise data.
3. Fixed Satellite Transmit/Receive Earth Stations
    Currently there are over 7500 authorized fixed satellite transmit/
receive earth stations authorized for use in bands shared with the 
terrestrial fixed service. We do not request or collect annual revenue 
information, and thus are unable to estimate the number of the earth 
stations that would constitute a small business under the SBA 
definition.
4. Mobile Satellite Earth Station Feeder Links
    There are two licensees operating in spectrum shared with 
terrestrial fixed services. We do not request or collect annual revenue 
information, and thus are unable to estimate of the number of mobile 
satellite earth stations that would constitute a small business under 
the SBA definition.
5. Space Stations (Geostationary)
    Commission records reveal that there are six space station 
licensees licensed in spectrum shared on a co-primary basis with the 
terrestrial fixed service in the C- and Ku-bands. We do not request or 
collect annual revenue information, and thus are unable to estimate of 
the number of geostationary space stations that would constitute a 
small business under the SBA definition.
6. Space Stations (Non-Geostationary)
    There are four Non-Geostationary Space Station licensees licensed 
in spectrum shared on a co-primary basis with the terrestrial fixed 
service in the C- and Ku-bands. We do not request or collect annual 
revenue information, and thus are unable to estimate of the number of 
non-geostationary space stations that would constitute a small business 
under the SBA definition.
7. Auxiliary, Special Broadcast and Other Program Distribution Services
    This service involves a variety of transmitters, generally used to 
relay broadcast programming to the public (through translator and 
booster stations) or within the program distribution chain (from a 
remote news gathering unit back to the station). The Commission has not 
developed a definition of small entities applicable to broadcast 
auxiliary licensees. Therefore, the applicable definition of small 
entity is the definition under the Small Business Administration (SBA) 
rules applicable to radio broadcasting stations (SIC 4832) and 
television broadcasting stations (SIC 4833). These definitions provide 
that a small entity is one with either $5.0 million or less in annual 
receipts for a radio broadcasting station or $10.5 million in annual 
receipts for a TV station. 13 CFR 121.201, SIC CODES 4832 and 4833. 
There are currently 3,237 FM translators and boosters, 4913 TV 
translators. The FCC does not collect financial information on any 
broadcast facility and the Department of Commerce does not collect 
financial information on these auxiliary broadcast facilities. We 
believe, however, that most, if not all, of these auxiliary facilities 
could be classified as small businesses by themselves. We also 
recognize that most translators and boosters are owned by a parent 
station which, in some cases, would be covered by the revenue 
definition of small business entity discussed. These stations would 
likely have annual revenues that exceed the SBA maximum to be 
designated as a small business (as noted, either $5 million for a radio 
station or $10.5 million for a TV station). Furthermore, they do not 
meet the Small Business Act's definition of a ``small business 
concern'' because they are not independently owned and operated.
8. Microwave Services
    Microwave services includes common carrier, private operational 
fixed, and broadcast auxiliary radio services. At present, there are 
over 13,500 common carrier stations, and approximately 18,00 private 
operational fixed stations and broadcast auxiliary radio stations in 
the microwave services in spectrum that is potentially affected by this 
rulemaking. Additionally, these stations represent the following 
distinct licensees among the various radio services: LMDS (121), DEMS 
(2), Common Carrier Fixed (PTP and LTTS) (1028), Private Operational 
Fixed PTP (1511), and Fixed Broadcast Auxiliary (806). Inasmuch as the 
Commission has not yet defined a small business with respect to 
microwave services, we will utilize the SBA's definition applicable to 
radiotelephone companies--i.e., an entity with no more than 1,500 
persons. 13 CFR 121.201, SIC CODE 4812. 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.

D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    The Commission's existing part 25 rules on FSS operations contain 
reporting requirements for FSS systems, and we propose to modify these 
reporting requirements to eliminate duplicative costs of filing 
multiple applications for one particular type of service at C-band. In 
addition, we propose to add an annual reporting requirement to indicate 
the number of satellite earth stations actually brought into service. 
The proposed blanket licensing procedures do not affect small entities 
disproportionately and it is likely no additional outside professional 
skills are required to complete the annual report indicating the number 
of small antenna earth stations actually brought into service. We seek 
comment on these proposed changes.

E. Steps Taken to Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    The RFA requires an agency to describe any significant alternatives 
that it has considered in reaching its proposed approach, which may 
include the following four alternatives: (1) The establishment of 
differing compliance or reporting requirements or timetables that take 
into account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance or 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.
    This NPRM solicits comment on alternatives for more efficient 
spectrum sharing between satellite earth stations and terrestrial fixed 
service stations, as well as comment on licensing of small aperture 
antennas at C-band. This item should positively impact both large and 
small businesses by providing a more efficient and less economically 
burdensome coordination and licensing procedure for terrestrial fixed 
stations in spectrum shared with satellite services.

[[Page 70546]]

Additionally, the proposed licensing service rules provide for 
consolidation of licensing for small antenna earth stations and minor 
reporting requirements to indicate the number of satellite earth 
stations brought into service.

F. Federal Rules that May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    None.

Ordering Clauses

    Pursuant to sections 4(i), 7(a), 303(c), 303(f), 303(g), and 303(r) 
of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 
157(a), 303(c), 303(f), 303(g), and 303(r), this Notice of Proposed 
Rulemaking is hereby adopted. FWCC's Request for Declaratory Ruling is 
denied. Onsat's Petition for Declaratory Order is denied.
    The Commission's Consumer Information Bureau, Reference Information 
Center, Shall Send a copy of this Notice of Proposed Rulemaking, 
including the Initial Regulatory Flexibility Analysis, to the Chief, 
Counsel for Advocacy of the Small Business Administration.

List of Subjects

47 CFR Part 25

    Communications common carriers, Communications, Radio, Satellites, 
Telecommunications.

47 CFR Part 101

    Communications equipment, Radio.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Proposed Rule Changes

    For the reasons set forth in the preamble, parts 25 and 101 of 
title 47 of the Code of Federal Regulations are proposed to be amended 
as follows:

PART 25--SATELLITE COMMUNICATIONS

    1. The authority citation for part 25 continues to read as follows:

    Authority: 47 U.S.C. 701-744. Interprets or applies sections 4, 
301, 302, 303, 307, 309 and 332 of the Communications Act, as 
amended, 47 U.S.C. sections 154, 301, 302, 303, 307, 309 and 332, 
unless otherwise noted.

    2. Section 25.115 is amended by redesignating paragraph (c) as 
(c)(1) and by adding a new paragraph (c)(2) to read as follows:


Sec. 25.115  Application for earth station authorizations.

* * * * *
    (c) * * *
    (2) Large Networks of Small Antennas operating in the 4/6 GHz 
frequency bands with U.S.-licensed or non-U.S. licensed satellites for 
domestic services. Applications to license small antenna network 
systems operating in the 4/6 GHz frequency band shall be filed 
electronically on FCC Form 312, Main Form and Schedule B.
    (i) An initial lead application providing a detailed overview of 
the complete network shall be filed. Such lead applications shall fully 
identify the scope and nature of the service to be provided, as well as 
the complete technical details of each representative type of small 
antenna (less than 4.5 meters) that will operate within the network. 
Such lead applications shall not be licensed unless they identify no 
more than three discrete geostationary satellites to be accessed, 
identify a maximum of 20 MHz of spectrum to be used for communication 
channels, and identify the maximum number of earth station sites, the 
amount of frequency bandwidth sought, and the general geographic area 
in which each type of small antenna will operate.
    (ii) Following the issuance of a license for the initial lead 
application, the licensee shall notify the Commission of the complete 
technical parameters of each individual earth station site before that 
site is bought into operation under the lead authorization. Full 
frequency coordination of each individual site shall be completed prior 
to filing Commission notification and conducted in accordance with 
Sec. 25.203. Such notification shall be done by electronic filing and 
shall be consistent with the technical parameters of Schedule B of FCC 
Form 312. These individual site notifications will be routinely 
processed. Operation of each individual site may commence if no 
comments are received within a 30-day period after public notice of the 
licensee's notification filing. Continuance of operation for the 
duration of the lead license term of each individual site shall be 
dependent upon successful completion of the normal public notice 
process. If any objections are received to the newly added remote 
stations, the licensee shall not operate those particular stations 
until the coordination dispute is resolved and the licensee informs the 
Commission of the resolution. Each CSAT licensee shall provide the 
Commission an annually updated list of all operational earth stations 
in its system. The annual list also shall include a list of all earth 
stations planned for the next 12 months but not yet built, a list of 
all earth stations deactivated during the year, and a report of any 
changes in satellite location applicable to the CSAT network.
* * * * *
    3. Section 25.134 is amended by:
    a. Revising the section heading,
    b. Redesignating paragraph (a) as (a)(1) and adding a heading,
    c. Adding a new paragraph (a)(2), and
    d. Adding a heading to paragraph (b) to read as follows:


Sec. 25.134  Licensing provisions of Very Small Aperture Terminal 
(VSAT) and C-band Small Aperture Terminal (CSAT) networks.

    (a) * * * 
    (1) VSAT networks operating in the 12/14 GHz bands. * * *
    (2) Large Networks of Small Antennas operating in the 4/6 GHz 
frequency bands. All applications for digital and/or analog operations 
will be routinely processed provided the network employs antennas that 
are 4.5 meter or larger in diameter, that are consistent with 
Sec. 25.209, the power levels are consistent with Sec. 25.211(d) and 
Sec. 25.212(d), and frequency coordination has been satisfactorily 
completed. The use of smaller antennas or non-consistent power levels 
require the filing of an initial lead application (Sec. 25.115(c)(2)) 
that includes all technical analyses required to demonstrate operation 
on a non-interference basis or an affidavit from the satellite operator 
that such non-conforming operations have been successfully coordinated 
with any and all affected adjacent satellite operators.
    (b) VSAT networks operating in the 12/14 GHz bands. * * *
* * * * *
    4. Section 25.203 is amended by redesignating paragraphs (e) 
through (k) as (f) through (l) and by adding a new paragraph (e) to 
read as follows:


Sec. 25.203  Choice of sites and frequencies.

* * * * *
    (e) The following provisions shall apply to the coordination of a 
newly proposed terrestrial station with an existing or previously filed 
FSS earth station:
    (1) When a terrestrial fixed service license applicant requests but 
is denied coordination in spectrum in the 3700-4200 MHz, 5925-6425 MHz, 
6525-6875 MHz or 10.7-11.7 GHz band, a potentially affected earth 
station licensee must demonstrate to the frequency coordinator that it 
is actually using, has recently used, or has imminent plans to use the 
spectrum in question if the earth station licensee wishes, in the case 
of a receiving earth station, to be protected from interference from 
the new terrestrial

[[Page 70547]]

fixed station on that spectrum, or, in the case of a transmitting earth 
station, not to have to protect the new terrestrial station.
    (i) If the earth station licensee cannot make such a demonstration 
during the coordination, then the terrestrial fixed station may be 
successfully coordinated and the earth station must not cause 
unacceptable interference to, nor is it protected from interference 
from, the terrestrial fixed station on that spectrum in the future. In 
demonstrating use of the spectrum that has been denied coordination, 
the earth station licensee shall:
    (A) For recent use, identify the timeframes during which each 
satellite transponder frequency band was used within the past 24 
months;
    (B) For current use, identify each satellite transponder frequency 
band in use at the time of the coordination request; and
    (C) For imminent use, certify the availability of some form of 
detailed information or planned use, e.g., use to be initiated within 
the next six months and supported by contract(s) or other 
documentation.
    (ii) If, however, the earth station has been licensed for less than 
twenty-four months, all of its licensed bandwidth will be considered in 
use for purposes of the coordination. Earth stations licensed for 40 
MHz or less in each direction would not be required to demonstrate use 
within any timeframe in order to retain protection for that spectrum.
    (2) If an earth station licensee accepts a particular interference 
analysis model that employs certain interference mitigating factors, 
such as terrain or building blockage, in order to successfully 
coordinate its station with a terrestrial fixed station, then it must 
accept the use of that same model in subsequent coordinations.
    (3) If an earth station applicant for spectrum in the 3700-4200 
MHz, 5925-6425 MHz, 6525-6875 MHz or 10.7-11.7 GHz band, during its 
coordination, accepts a level of interference that is recognized to be 
below accepted interference objectives along a set of azimuths and 
elevation angles on part of the spectrum for which it is applying, and 
therefore insufficient to clear the interference case, then the earth 
station licensee is not entitled to protection from interference from 
future terrestrial fixed service applicants on those same frequencies 
within that same set of azimuths and elevation angles.
* * * * *

PART 101--FIXED MICROWAVE SERVICES

    5. The authority citation for Part 101 continues to read as 
follows:

    Authority: 47 U.S.C. 154, 303.

    6. Section 101.103(d)(1) is amended by adding a sentence at the end 
of the paragraph to read as follows:


Sec. 101.103  Frequency coordination procedures.

* * * * *
    (d) * * *
    (1) * * * Additionally, if a fixed station licensee accepts a 
particular interference analysis model that employs certain 
interference mitigating factors, such as terrain or building blockage, 
in order to successfully coordinate its station with a fixed satellite 
service earth station in the 3700-4200 MHz, 5925-6425 MHz, 6525-6875 
MHz or 10.7-11.7 GHz frequency band, then it must accept the use of 
that same model in subsequent coordinations.
* * * * *
    7. Section 101.141(a)(3) is amended by revising the first sentence 
of footnote 3 to the table to read as follows:


Sec. 101.141  Microwave modulation.

    (a) * * *
    (3) * * *

    \3\ This loading requirement must be met within 24 months of 
licensing. * * *
* * * * *
[FR Doc. 00-29870 Filed 11-22-00; 8:45 am]
BILLING CODE 6712-01-U


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