Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 / Proposed Rules 41757

1 47 CFR 41.1 et seq.

2See 47 CFR 41.11. Part 41 was adopted pursuant

to section 210(a) of the Communications Act of

1934, as amended. 47 USC 210(a). In pertinent part,

section 210(a) provides:

Nothing in this Act or in any other provision of

law shall be construed to prohibit common carriers

from issuing or giving franks to, exchanging franks

Continued

according to the method in 30 TAC

114.200.

The EPA proposed disapproval of the

AVR SIP revision on December 19,

1997, (62 FR 66576).

II. Comments on Proposed Disapproval

Five comments were received in

response to the proposed disapproval.

Four comments supported disapproval.

The Texas Natural Resource

Conservation Commission commented

that because the AVR submittal does not

reflect current programs that are

necessary to implement the scrappage

program as designed, the State

determined that Section 114.200 should

be revised. The State intended to

replace Section 114.200 with a new

Section 114.200 in order to establish an

AVR program that does not rely on the

use of the IM240 test. The EPA agrees

with Texas’ plan to replace Section

114.200 with a new section if the State

intends to implement a vehicle

scrappage program.

The comment from the Lone Star

Chapter of the Sierra Club raised issues

of Environmental Justice (EJ) under Title

VI of the Civil Rights Act. The Sierra

Club supported the proposed

disapproval and also used the comment

period as an opportunity to discuss EJ

as it relates to Vehicle Scrappage

Programs. They protest the Texas SIP

AVR Program for its inherent failure to

comply with Title VI of the Civil Rights

Act of 1964 which strictly prohibits

discrimination on the basis of race,

color, or national origin by any program

receiving Federal financial assistance.

The EPA recognizes EJ as an issue that

cannot and should not be ignored. For

the purposes of this document, EJ and

its relationship to vehicle scrappage will

not be discussed because it is not

germane considering the State’s request

to withdraw the AVR program as a

revision to the SIP.

III. Withdrawal Action

On March 23, 1998, the Governor of

Texas sent a letter to EPA requesting

that the Texas AVR SIP revision be

removed from the SIP process. These

rules are neither required by the Clean

Air Act, nor part of any rate of progress

plans for the State.

In this action, EPA is withdrawing the

proposed disapproval because the State

withdrew the 1994 AVR SIP revision.

The EPA is removing this submittal

from the SIP process, and no further

rulemaking action will take place with

regard to the 1994 AVR SIP submittal.

Nothing in this action should be

construed as permitting or allowing or

establishing a precedent for any future

request for revision to any SIP. Each

request for revision to the SIP shall be

considered separately in light of specific

technical, economic, and environmental

factors and in relation to relevant

statutory and regulatory requirements.

IV. Administrative Requirements

A. Executive Order (E.O.) 12866

The Office of Management and Budget

has exempted this action from review

under Executive Order 12866, entitled

‘‘Regulatory Planning Review.’’ This

withdrawal action is not subject to E.O.

13045, entitled ‘‘Protection of Children

from Environmental Health Risks and

Safety Risks,’’ because it is not an

‘‘economically significant’’ action under

E.O. 12866.

B. Regulatory Flexibility Act

Under the Regulatory Flexibility Act,

5 U.S.C. 600 et seq., EPA must prepare

a regulatory flexibility analysis

assessing the impact of any proposed or

final rule on small entities. See U.S.C.

603 and 604. Alternatively, EPA may

certify that the rule will not have a

significant impact on a substantial

number of small entities. Small entities

include small businesses, small not-forprofit enterprises, and government

entities with jurisdiction over

populations of less than 50,000.

This action is a withdrawal of the

proposed disapproval with no

associated rulemaking. Therefore I

certify that it does not have an impact

on any small entities.

List of Subjects in 40 CFR Part 52

Environmental protection, Air

pollution control, Ozone, Volatile

organic compounds.

Dated: July 24, 1998.

Jerry Clifford,

Acting Regional Administrator, Region 6.

[FR Doc. 98–20902 Filed 8–4–98; 8:45 am]

BILLING CODE 6560–50–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 41

[FCC 98–152]

1998 Biennial Regulatory Review—

Elimination of Part 41 Telegraph and

Telephone Franks

AGENCY: Federal Communications

Commission.

ACTION: Notice of proposed rulemaking.

SUMMARY: On July 21, 1998, the Federal

Communications Commission released a

Notice of Proposed Rulemaking (NPRM)

that proposed to eliminate, in toto, part

41 (Telephone and Telegraph Franks) of

the Commission’s rules. The NPRM,

part of the Commission’s 1998 biennial

regulatory review, tentatively concludes

that the development of competition

among interstate and foreign

telecommunications service providers

renders these regulations unnecessary.

DATES: Comments are due on or before

August 31, 1998. Reply comments are

due on or before September 10, 1998.

ADDRESSES: Comments and reply

comments should be sent to the Office

of the Secretary, Federal

Communications Commission, 1919 M

Street, NW, Suite 222, Washington, DC

20554, with a copy to Scott Bergmann

of the Common Carrier Bureau, Federal

Communications Commission, 2033 M

Street, NW, Suite 500, Washington, DC

20554. Parties should also file one copy

of any documents filed in this docket

with the Commission’s copy contractor,

International Transcription Services,

Inc. (ITS), 1231 20th St., NW,

Washington, DC 20037.

FOR FURTHER INFORMATION CONTACT:

Thomas J. Beers, Deputy Chief of the

Industry Analysis Division, Common

Carrier Bureau, at (202) 418–0952, or

Scott K. Bergmann, Industry Analysis

Division, Common Carrier Bureau, at

(202) 418–7102.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s Notice of

Proposed Rulemaking released July 21,

1998 (FCC 98–152). The full text of this

Notice of Proposed Rulemaking is

available for inspection and copying

during normal business hours in the

FCC Reference Center, Room 239, 1919

M Street, Washington, DC 20554. The

complete text also may be purchased

from the Commission’s copy contractor,

International Transcription Service, Inc.

(202) 857–3800, 1231 20th St., NW,

Washington, DC 20036.

Summary of the Notice of Proposed

Rulemaking

1. In the Notice of Proposed

Rulemaking (NPRM) summarized here,

we propose to eliminate, in toto, part 41

(Telegraph and Telephone Franks) of

the Commission’s rules.1 Part 41

governs the issuance of franks for

interstate and foreign telegraph and

telephone service by communications

common carriers.2 Part 41 also governs
41758 Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 / Proposed Rules

with each other for the use of, their officers, agents,

employees, and their families, or subject to such

rules as the Commission may prescribe, from

issuing, giving, or exchanging franks and passes to

or with other common carriers not subject to the

provisions of this Act, for the use of their officers,

agents, employees, and their families.

47 USC 210(a). We will refer to the

Communications Act of 1934, as amended, as ‘‘the

Communications Act’’ or ‘‘the Act.’’

3 47 CFR 41.31(c); 47 USC § 201(b).

4 47 USC 161.

5 49 USC 10101 et seq., 10722. In an explanatory

statement entered in the Congressional Record,

Representative Sam Rayburn indicated that section

210(a) is ‘‘based upon section 1(7) of the Interstate

Commerce Act.’’ 78 Cong. Rec. 10313–10314.

Rayburn further explained that the provision

‘‘carries over existing law permitting

communications companies to exchange franks for

messages and to exchange such franks with

railroads for passes.’’ Id.

the issuance of ‘‘reports of positions of

ships at sea furnished to newspapers of

general circulation without charge, or at

nominal charges, as authorized in

section 201(b) of the Act.’’ 3 Part 41

requires carriers, inter alia, to retain

records of these activities.

2. We undertake this examination of

part 41 of our rules pursuant to our 1998

biennial review of regulations as

required by section 11 of the

Communications Act, as amended.4

Section 11 requires us to review all of

our regulations applicable to providers

of telecommunications services and to

determine whether any rule is no longer

in the public interest as the result of

meaningful economic competition

between providers of

telecommunications service. We seek,

consistent with the

Telecommunications Act of 1996, to

strike a reasonable balance between our

goal of reducing and eliminating

regulatory requirements as competition

supplants the need for such

requirements, and our recognition that,

until full competition is realized, certain

safeguards may still be necessary. In this

case, we tentatively conclude that the

development of competition among

interstate and international

telecommunications service providers

renders part 41 unnecessary and we

propose to eliminate it.

II. Background

3. Part 41 of the Commission’s rules

governs the provision of franks and

certain reports by communications

common carriers pursuant to sections

210(a) and 201(b) of the Act. Franks

enable authorized persons to send

‘‘interstate or foreign telephone or

telegraph’’ messages, free of charge or at

reduced rates, over communications

facilities. Section 210 of the Act

authorizes communications common

carriers to issue franks and passes to

other common carriers, including other

communications common carriers, for

the benefit of the officers, agents, and

employees of the common carrier that

receives the franks, and their families.

As such, section 210(a) authorizes a per

se class of lawful preferences that

otherwise might be prohibited as

unlawful pursuant to the terms of

section 202(a).

4. Section 210(a) was adopted as part

of the original Communications Act. As

such, its origin was the Interstate

Commerce Act of 1887, as amended.5 By

its own terms, section 210(a) states that

the Commission may regulate the

issuance of franks by common carriers

subject to the Communications Act

(referred to here as ‘‘communications

common carriers’’) to common carriers

not subject to the Communications Act.

In contrast, section 210(a) does not

specifically grant the Commission the

authority to regulate the issuance of

franks from communications common

carriers to other communications

common carriers or to themselves. In

accordance with section 210(a), the

Commission adopted rules, codified in

part 41 of the Code of Federal

Regulations, that govern the issuance of

franks to common carriers not subject to

the Communications Act, such as

railroads. The rules were adopted and

modified in a series of orders from the

late 1930’s and have been subject to

only minor modifications since that

time. Pursuant to these rules the

Commission has capped the value of

individual franks at $50 per year and

imposed certain recordkeeping

requirements on carriers issuing franks.

5. Section 41.31(c) of the

Commission’s rules implements section

201(b) of the Act allowing, but not

requiring, common carriers to furnish

reports of the positions of ships at sea

to newspapers of general circulation.

Section 201(b) provides that ‘‘nothing in

this Act or in any other provision of law

shall prevent a common carrier subject

to this Act from furnishing reports of

positions of ships at sea to newspapers

of general circulation, either at a

nominal charge or without charge,

provided the name of such common

carrier is displayed along with such

ship position reports.’’

III. Discussion

6. As noted, section 11 of the Act

directs the Commission to determine

whether any regulation applicable to

providers of telecommunications

services ‘‘is no longer necessary in the

public interest as the result of

meaningful economic competition

between providers of such service.’’ We

seek comment as to whether our

regulation of telephone and telegraph

franking privileges and certain reports

pursuant to part 41 of the rules

continues to be in the public interest.

For the reasons set out in the NPRM and

summarized in the following

paragraphs, we tentatively conclude that

it does not, and we seek comment on

our analysis and tentative conclusion

that we should eliminate part 41 in its

entirety.

7. Section 41.11 states that ‘‘franks

valid for interstate and foreign telegraph

or telephone service may be issued or

used and free service may be rendered

only in accordance with * * *’’ the

provisions of part 41. Section 41.13

nevertheless goes on to exempt certain

carriers, services, and persons from

much of this regulation. These

exemptions reflect the limitations

imposed on Commission regulation of

common carrier-issued franks and

passes by the terms of section 210 of the

Act. Thus, for example, section 210(a)

does not, on its face, authorize the

Commission to regulate the issuance of

franks by communications common

carriers regulated under the

Communications Act to their own

officers, agents, employees, and their

families or to other communications

common carriers. Section 41.13(c) of the

rules generally exempts ‘‘free or

concession service now or hereafter

granted to officers, agents, or employees

of common carriers subject to the Act,

and to their families.’’

8. Other sections of part 41 impose

specific limitations or requirements on

carriers issuing franks to other carriers

not regulated by the Act, and on persons

receiving such franks. Thus, §§ 41.21

and 41.22, respectively, set a specific

monetary limit or cap of $50 on the

value of franks that can be issued to or

used by any one person in a given year

and prescribe particular requirements

for issued franks. Section 41.31, inter

alia, requires common carriers issuing

lawful franks to maintain records of

issued franks. These records must be

maintained in connection with franks

regulated pursuant to part 41 (§ 41.31(a))

and other franks which are specifically

exempted from regulation pursuant to

§ 41.13 (§ 41.31(b)). In other words,

regardless of whether certain carrierissued franks are subject to the

substantive limitations imposed by part

41, § 41.31 requires that

communications common carriers

maintain specified records for all issued

franks, records which must be produced

upon Commission demand. Finally,

§ 41.31(c) imposes a recordkeeping

requirement on carriers who provide

‘‘reports of positions of ships at sea to
Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 / Proposed Rules 41759

6 1935 Telegraph Franks Order, 1 FCC 291, 295–

296.

7 1935 Telegraph Franks Order, 1 FCC 291, 295.

8See 5 USC 603. The RFA, see 5 USC 601 et. seq.,

has been amended by the Contract With America

Advancement Act of 1996, Pub. L. 104–121, 110

Stat. 847 (1996) (CWAAA). Title II of the CWAAA

is the Small Business Regulatory Enforcement

Fairness Act of 1996 (SBREFA).

newspapers of general circulation,

without charge, or at nominal charges’’

pursuant to section 201(b) of the Act.

9. These rules, we tentatively

conclude, reflect the regulation—and,

derivatively, the market structure and

competitive realities—of a bygone era

and are long overdue for elimination.

We believe they impose unnecessary

burdens on competitive carriers

operating in current interstate and

international markets. We propose to

eliminate these rules.

10. Early Commission decisions about

carrier-issued franks reflect Commission

concerns that franking privileges might

be used for anticompetitive purposes

and might be subject to ‘‘excessive use.’’

For example, following an investigation

of the telegraph industry initiated in

1935, i.e., within a year of the

enactment of the Communications Act,

the Commission discovered that some

telegraph carriers were issuing franks

valued at hundreds of thousands of

dollars.6 Assessing this practice, the

Commission observed:

[W]e are convinced, that the issuance of

franks and the giving away of free service by

telegraph companies is used as a competitive

measure; and that, as a competitive measure,

it is subject to great abuse.7

The genesis of part 41 of the rules is

this concern with carrier abuse of

franking to achieve competitive

advantage. This concern may very well

have been valid in an era when

telecommunications service markets

were dominated by carrier monopolists

and oligopolists. Indeed, in such an

environment, anticompetitive abuses

such as those described by the

Commission in 1935 would eventually

have ratepayer consequences as well. In

other words, excessive issuance of

franking privileges might have resulted

in costs borne unfairly by ratepayers.

11. We need not, in the NPRM, recite

in great detail just how the

Commission’s regulation has altered as

interstate and international service

competition has developed in the

decades since 1935. In summary form,

and driven in large part by technological

developments since the Second World

War, the Commission embarked on a

course of regulation that both stimulated

and reflected the development of

competitive markets. For example, in a

series of orders beginning in 1982, the

Commission has sought to reduce or

eliminate various regulatory burdens

imposed on interexchange carriers who

have been found to be nondominant.

Such nondominant status has even been

awarded to AT&T, with the result that

all domestic interexchange service

markets have now been found to be

subject to competition. As a result, the

Commission has stated its belief that

market forces will generally ensure that

the rates, practices, and classifications

of nondominant interexchange carriers

are just and reasonable and not unjustly

or unreasonably discriminatory. In point

of fact, almost all of the ‘‘interstate and

foreign telegraph or telephone’’ services

that are the subject of part 41 regulation

per franks and reports are now provided

in markets that the Commission has

found to be competitive.

12. Because our part 41 rules were

adopted at a very different time than the

world of today, i.e., a time when firms

providing interstate and foreign services

faced a vastly different set of statutory,

regulatory, economic, and operational

barriers, we believe that franking

regulation is no longer necessary. We

believe that the discipline of

competitive markets exists to restrict

almost any conceivable misuse of the

franking privilege, a privilege that is, we

note, guaranteed by statute. It is our

belief that most communications franks

issued today are, in fact, concessions

issued to the communications carrier’s

own employees, officers, or other

personnel or are franks issued to other

carriers regulated by the Act. Such

franks are not, pursuant to the language

of section 210(a), subject to this

Commission’s regulation in any event.

We have, nevertheless, in § 41.31(b) of

our rules, imposed carrier

recordkeeping requirements in these

cases. Such records are, we tentatively

conclude, unnecessary to prevent

anticompetitive conduct which in most,

if not all cases, will be most effectively

prevented by the operation of free

market mechanisms. In the event that

investigations by this Commission ever

become necessary in such cases, we

believe that we have ample authority

under the Act to compel the production

of carrier accounting records to assist

such investigations. We further note

that, for Class A and Class B telephone

companies, such accounting records are

kept pursuant to Commission rules and

are subject at all times to the

Commission’s right of inspection.

Taking into account all these

considerations, we tentatively conclude

that we may eliminate part 41

requirements as they apply to franks for

interstate and international services as

issued by common carriers regulated by

the Act to common carriers regulated by

the Act. We seek comment on this

tentative conclusion.

13. Concerning section 201(b)-

authorized ‘‘reports of positions of ships

at sea,’’ we believe it unlikely that

carriers would be able to gain an

improper or unlawful competitive

advantage were we to lift our § 43.31(c)

recordkeeping requirement. Carriers

issuing such reports exist in markets

subject to the same current and

developing competitive pressures

described in the NPRM and as

summarized supra. We see no reason to

encumber these carriers—carriers who

provide a valuable service specifically

authorized by the Act—with special

recordkeeping requirements and we find

it unlikely that carriers are likely to

abuse this provision. Accordingly, we

tentatively conclude that we should

eliminate § 43.31(c) of the rules, and we

seek comment on this tentative

conclusion.

14. In the NPRM, we tentatively

conclude that no part 41 regulation is

necessary and we accordingly propose

to eliminate part 41, in toto. If any

commenters consider that some form of

regulation is required to govern the

provision of franks and certain section

201(b) reports, we encourage them to

suggest alternatives that are less

burdensome than those currently set out

in part 41. Such commenters, to the

extent that they wish to retain part 41

regulation, should present a cost-benefit

analysis addressing the costs of

compliance, including direct costs and

burdens on companies, regulators,

customers and taxpayers, as well as any

indirect costs. The statute affords the

Commission wide discretion in

determining the contours of the public

interest. We also note that many costs

and benefits of regulation may be

difficult, if not impossible to quantify.

As a general matter, however, we will

not maintain a regulation pursuant to

the section 11 public interest analysis

where we determine that the costs of the

regulation exceed the benefits. We seek

comment on this approach. Overall, we

seek comment on any and all analysis

and conclusions contained in the

NPRM.

IV. Procedural Matters

A. Initial Regulatory Flexibility Act

Analysis

15. As required by the Regulatory

Flexibility Act (RFA),8 the Commission

has prepared an Initial Regulatory

Flexibility Analysis (IRFA), summarized

here, of the possible significant

economic impact on small entities by
41760 Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 / Proposed Rules

9See 5 USC 603(a).

10See id.

11 47 CFR 41.1 et seq.

12 47 USC 161.

13 Id.

14Telecommunications Act of 1996, Pub. L. 104–

104, 110 Stat. 56 (1996 Act), codified at 47 USC 151

et seq. See Joint Explanatory Statement of the

Committee of Conference, S. Conf. Rep. No. 230,

104th Cong., 2d Sess. 113 (1996) (Joint Explanatory

Statement).

15 5 USC 601(6).

16 5 USC 601(3) (incorporating by reference the

definition of ‘‘small business concern’’ in 5 USC

632). Pursuant to 5 USC 601(3), the statutory

definition of a small business applies ‘‘unless an

agency after consultation with the Office of

Advocacy of the Small Business Administration

and after opportunity for public comment,

establishes one or more definitions of such term

which are appropriate to the activities of the agency

and publishes such definition in the Federal

Register.’’

17 15 USC 632. See, e.g., Brown Transport

Truckload, Inc. v. Southern Wipers, Inc., 176 B.R.

82 (N.D. Ga. 1994).

18 13 CFR 121.201.

19FCC, Telecommunications Industry Revenue:

TRS Fund Worksheet Data, Figure 2 (Number of

Carriers Paying Into the TRS Fund by Type of

Carrier) (Nov. 1997) (Telecommunications Industry

Revenue).

20 Id.

the policies and rules proposed in this

NPRM. 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 this NPRM provided

above on the first page. The Commission

will send a copy of this NPRM,

including this IRFA, to the Chief

Counsel for Advocacy of the Small

Business Administration.9 In addition,

this NPRM and IRFA (or summaries

thereof) will be published in the Federal

Register.10

16. Need for, and Objectives of, the

Proposed Action. The Commission

undertakes this examination of Part 41 11

of its rules as a part of its 1998 biennial

review of regulations as required by

section 11 of the Communications Act,

as amended.12 Our objective is to reduce

or eliminate unnecessary or duplicative

regulatory requirements as competition

supplants the need for such

requirements, consistent with section 11

of the Communications Act, as

amended,13 and the

Telecommunications Act of 1996.14 The

NPRM seeks comment as to whether the

Commission’s regulation of telephone

and telegraph franking privileges and

certain reports concerning ‘‘ships at

sea’’ pursuant to part 41 of the rules

continues to be in the public interest.

The NPRM tentatively concludes that

the development of competition among

interstate and international

telecommunications service providers

renders Part 41 unnecessary and

proposes to eliminate it, in toto.

17. Legal Basis. The legal basis for the

action as proposed for this rulemaking

is contained in sections 1, 4(i) and (j),

11, 201–205, 210, 218 and 403 of the

Communications Act of 1934, as

amended, 47 USC 151, 154(i) and (j),

161, 201–205, 210, 218, and 403.

18. Description and Estimate of the

Number of Small Entities to Which the

Proposed Action May Apply. Part 41

governs the issuance of franks

(authorized pursuant to section 210 of

the Act) and certain reports of ships at

sea (authorized pursuant to section

201(b)) by all common carriers subject

to the Communications Act of 1934, as

amended. This NPRM asks commenters

to address the extent to which

communications common carriers

currently utilize these statutory

privileges—the issuance of franks and

reduced cost reports on the positions of

ships at sea—so that the Commission

may determine the actual burden

imposed by part 41 on these common

carriers. In the absence of a more

complete record, we note that the

proposals set forth in this proceeding

may have an economic impact on a

substantial number of small telephone

companies, i.e. all common carriers

subject to the Act. The economic impact

of these proposals would, of course, be

a positive and beneficial impact, in the

form of reduced regulatory burdens and

recordkeeping requirements, for these

common carriers.

19. To estimate the number of small

entities that would benefit from this

positive economic impact, we first

consider the statutory definition of

‘‘small entity’’ under the RFA. The RFA

generally defines ‘‘small entity’’ as

having the same meaning as the term

‘‘small business,’’ ‘‘small organization,’’

and ‘‘small governmental

jurisdiction.’’ 15 In addition, the term

‘‘small business’’ has the same meaning

as the term ‘‘small business concern’’

under the Small Business Act, unless

the Commission has developed one or

more definitions that are appropriate to

its activities.16 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) meets any additional criteria

established by the Small Business

Administration (SBA).17 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.18 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

telephone companies that are commonly

used under our rules.

20. We expect that the rules in part

41—and the privileges regulated

therein—have only been utilized by a

limited class of entities, specifically the

Bell Operating Companies and certain

other providers of local exchange and

interexchange telecommunications

services. Nevertheless, given that the

language of sections 201(b) and 210(a)

speaks broadly of ‘‘common carriers’’

we analyze a wide range of categories in

an effort to identify the greatest number

of small entities possible that could be

effected by the proposals in this NPRM.

Thus, in some cases below, we expect

that not all of the entities within a given

category offer common carrier services,

let alone issue franks or reports of ships

at sea pursuant to part 41. In all cases,

of course, entities affected by this

proposal would not lose any of their

statutorily-granted rights under sections

201(b) or 210(a) and would enjoy a

positive economic impact from reduced

regulation of those privileges.

21. The most reliable source of

information regarding the total numbers

of certain common carrier and related

providers nationwide, as well as the

numbers of commercial wireless

entities, appears to be data the

Commission publishes annually in its

Telecommunications Industry Revenue

report, regarding the

Telecommunications Relay Service

(TRS).19 According to data in the most

recent report, there are 3,459 interstate

carriers.20 These carriers include, inter

alia, local exchange carriers, wireline

carriers and service providers,

interexchange carriers, competitive

access providers, operator service

providers, pay telephone operators,

providers of telephone toll service,

providers of telephone exchange

service, and resellers.

22. Although some affected

incumbent local exchange carriers

(ILECs) may have 1,500 or fewer

employees, we do not believe that such

entities should be considered small

entities within the meaning of the RFA

because they are either dominant in

their field of operations or are not

independently owned and operated, and

therefore by definition not ‘‘small

entities’’ or ‘‘small business concerns’’

under the RFA. Accordingly, our use of

the terms ‘‘small entities’’ and ‘‘small

businesses’’ does not encompass small

ILECs. Out of an abundance of caution,
Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 / Proposed Rules 41761

21See 13 CFR 121.201, SIC Code 4813.

22United States Department of Commerce, Bureau

of the Census, 1992 Census of Transportation,

Communications, and Utilities: Establishment and

Firm Size, at Firm Size 1–123 (1995) (‘‘1992

Census’’).

23 15 USC 632(a)(1).

24 1992 Census, supra, at Firm Size 1–123.

25 13 CFR 121.201, Standard Industrial

Classification (SIC) Code 4813.

26See 47 CFR 64.601 et seq.

27Telecommunications Industry Revenue at Fig.

2.

28 13 CFR 121.210, SIC Code 4813.

29Telecommunications Industry Revenue at Fig.

2.

30Telecommunications Industry Revenue at Fig.

2.

31Telecommunications Industry Revenue at Fig.

2.

however, for regulatory flexibility

analysis purposes, we will separately

consider small ILECs within this

analysis and use the term ‘‘small ILECs’’

to refer to any ILECs that arguably might

be defined by the SBA as ‘‘small

business concerns.’’ 21

23. 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.22 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.’’ 23 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 this NPRM.

24. 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 1992.24

According to SBA’s definition, a small

business telephone company other than

a radiotelephone company is one

employing no more than 1,500

persons.25 All but 26 of the 2,321 nonradiotelephone 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

decisions and rules recommended for

adoption in this NPRM.

25. Local Exchange Carriers. Neither

the Commission nor SBA has developed

a definition of small providers of local

exchange services (LECs). The closest

applicable definition under SBA rules is

for telephone communications

companies other than radiotelephone

(wireless) companies. The most reliable

source of information regarding the

number of LECs nationwide of which

we are aware appears to be the data that

we collect annually in connection with

the Telecommunications Relay Service

(TRS).26 According to our most recent

data, 1,371 companies reported that

they were engaged in the provision of

local exchange services.27 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 LECs that would qualify as

small business concerns under SBA’s

definition. Consequently, we estimate

that there are fewer than 1,371 small

entity LECs or small incumbent LECs

that may be affected by the decisions

and rules recommended for adoption in

this NPRM.

26. Interexchange Carriers. Neither

the Commission nor SBA has developed

a definition of small entities specifically

applicable to providers of interexchange

services (IXCs). The closest applicable

definition under SBA rules is for

telephone communications companies

other than radiotelephone companies.28

The most reliable source of information

regarding the number of IXCs

nationwide of which we are aware

appears to be the data that we collect

annually in connection with TRS.

According to our most recent data, 143

companies reported that they were

engaged in the provision of

interexchange services.29 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 IXCs that would qualify as

small business concerns under SBA’s

definition. Consequently, we estimate

that there are fewer than 143 small

entity IXCs that may be affected by the

decisions and rules recommended for

adoption in this NPRM.

27. Competitive Access Providers.

Neither the Commission nor SBA has

developed a definition of small entities

specifically applicable to providers of

competitive access services (CAPs). The

closest applicable definition under SBA

rules is for telephone communications

companies other than radiotelephone

companies. The most reliable source of

information regarding the number of

CAPs nationwide of which we are aware

appears to be the data that we collect

annually in connection with the TRS.

According to our most recent data, 109

companies reported that they were

engaged in the provision of competitive

access services.30 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 CAPs

that would qualify as small business

concerns under SBA’s definition.

Consequently, we estimate that there are

fewer than 109 small entity CAPs that

may be affected by the decisions and

rules recommended for adoption in this

NPRM.

28. Operator Service Providers.

Neither the Commission nor SBA has

developed a definition of small entities

specifically applicable to providers of

operator services. The closest applicable

definition under SBA rules is for

telephone communications companies

other than radiotelephone companies.

The most reliable source of information

regarding the number of operator service

providers nationwide of which we are

aware appears to be the data that we

collect annually in connection with the

TRS. According to our most recent data,

27 companies reported that they were

engaged in the provision of operator

services.31 Although it seems certain

that some of these companies 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 operator

service providers that would qualify as

small business concerns under SBA’s

definition. Consequently, we estimate
41762 Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 / Proposed Rules

32 13 CFR 121.210, SIC Code 4813.

33Telecommunications Industry Revenue at Fig.

2.

34United States Department of Commerce, Bureau

of the Census, 1992 Census of Transportation,

Communications, and Utilities: Establishment and

Firm Size, at Firm Size 1–123 (1995) (‘‘1992

Census’’).

35 13 CFR 121.201, SIC Code 4812.

36 Id.

37Telecommunications Industry Revenue at Fig.

2.

38 Id., at ¶ 60.

39 Implementation of Section 309(j) of the

Communications Act—Competitive Bidding, PP

Docket No. 93–253, Fifth Report and Order, 9 FCC

Rcd 5532, 5581–84 (1994).

40See Amendment of Parts 2 and 90 of the

Commission’s Rules to Provide for the Use of 200

Channels Outside the Designated Filing Areas in

the 896–901 MHz and the 935–940 MHz Bands

Allotted to the Specialized Mobile Radio Pool, PR

Docket No. 89–583, Second Order on

Reconsideration and Seventh Report and Order, 11

FCC Rcd 2639, 2693–702 (1995); Amendment of

Part 90 of the Commission’s Rules to Facilitate

Future Development of SMR Systems in the 800

MHz Frequency Band, PR Docket No. 93–144, First

Report and Order, Eighth Report and Order, and

Second Further Notice of Proposed Rulemaking, 11

FCC Rcd 1463 (1995).

that there are fewer than 27 small entity

operator service providers that may be

affected by the decisions and rules

recommended for adoption in this

NPRM.

29. Resellers. Neither the Commission

nor SBA has developed a definition of

small entities specifically applicable to

resellers. The closest applicable

definition under SBA rules is for all

telephone communications

companies.32 The most reliable source

of information regarding the number of

resellers nationwide of which we are

aware appears to be the data that we

collect annually in connection with the

TRS. According to our most recent data,

339 companies reported that they were

engaged in the resale of telephone

services.33 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 resellers

that would qualify as small business

concerns under SBA’s definition.

Consequently, we estimate that there are

fewer than 339 small entity resellers

that may be affected by the decisions

and rules recommended for adoption in

this NPRM.

30. 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 1992.34

According to SBA’s definition, a small

business radiotelephone company is one

employing no more than 1,500

persons.35 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

are 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 decisions and

rules recommended for adoption in this

NPRM.

31. Cellular and Mobile Service

Carriers. In an effort to further refine our

calculation of the number of

radiotelephone companies affected by

the rules adopted herein, we consider

the categories of radiotelephone carriers,

Cellular Service Carriers and Mobile

Service Carriers. Neither the

Commission nor the SBA has developed

a definition of small entities specifically

applicable to Cellular Service Carriers

and to Mobile Service Carriers. The

closest applicable definition under SBA

rules for both services is for telephone

companies other than radiotelephone

(wireless) companies.36 The most

reliable source of information regarding

the number of Cellular Service Carriers

and Mobile Service Carriers nationwide

of which we are aware appears to be the

data that we collect annually in

connection with the TRS. According to

our most recent data, 804 companies

reported that they are engaged in the

provision of cellular services and 117

companies reported that they are

engaged in the provision of mobile

services.37 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 Cellular

Service Carriers and Mobile Service

Carriers that would qualify as small

business concerns under SBA’s

definition. Consequently, we estimate

that there are fewer than 804 small

entity Cellular Service Carriers and

fewer than 138 small entity Mobile

Service Carriers that might be affected

by the decisions and rules

recommended for adoption in this

NPRM.

32. 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. See Amendment of Parts 20 and

24 of the Commission’s Rules—

Broadband PCS Competitive Bidding

and the Commercial Mobile Radio

Service Spectrum Cap, Report and

Order, FCC 96–278, WT Docket No. 96–

59, ¶¶ 57–60 (June 24, 1996), 61 FR

33859 (July 1, 1996); see also 47 CFR

24.720(b). 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.38 These regulations

defining ‘‘small entity’’ in the context of

broadband PCS auctions have been

approved by SBA.39 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% 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 conclude 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 the SBA and the

Commissioner’s auction rules.

33. SMR Licensees. Pursuant to 47

CFR 90.814(b)(1), 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 800 MHz SMR has

been approved by the SBA,40 and

approval for the 900 MHz SMR

definition has been sought. The rules

proposed in this NPRM 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
Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 / Proposed Rules 41763

41 13 CFR 121.201, SIC Code 4812.

42See 47 CFR 20.9(a)(1) (noting that private

paging services may be treated as common carriage

services).

43 13 CFR 121.201, SIC Code 4812.

44Telecommunications Industry Revenue at

Figure 2.

45The service is defined in § 22.99 of the

Commission’s rules, 47 CFR 22.99.

46BETRS is defined in §§ 22.757 and 22.759 of

the Commission’s rules, 47 CFR 22.757, 22.759.

47 13 CFR 121.201, SIC Code 4812.

48The service is defined in section 22.99 of the

Commission’s rules, 47 CFR 22.99.

49 13 CFR 121.201, SIC Code 4812.

50See 47 CFR 20.9(a)(2) (noting that certain

Industrial/Business Pool service may be treated as

common carriage service).

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 rules recommended for

adoption in this NPRM.

34. 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 conclude that

the number of geographic area SMR

licensees that may be affected by the

decisions and rules proposed in this

NPRM 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 assume, for

purposes of this IRFA, that all of the

licenses may be awarded to small

entities who may be affected by the

decisions recommended for adoption in

this NPRM.

35. 220 MHz Radio Services. Because

the Commission has not yet defined a

small business with respect to 220 MHz

services, we will utilize the SBA

definition applicable to radiotelephone

companies, i.e., an entity employing no

more than 1,500 persons.41 With respect

to 220 MHz services, the Commission

has proposed a two-tiered definition of

small business for purposes of auctions:

(1) For Economic Area (EA) licensees, a

firm with average annual gross revenues

of not more than $6 million for the

preceding three years and (2) for

regional and nationwide licensees, a

firm with average annual gross revenues

of not more than $15 million for the

preceding three years. Given that nearly

all radiotelephone companies under the

SBA definition employ no more than

1,500 employees (as noted supra), we

will consider the approximately 1,500

incumbent licensees in this service as

small businesses under the SBA

definition.

36. Private and Common Carrier

Paging. The Commission has proposed

a two-tier definition of small businesses

in the context of auctioning licenses in

the Common Carrier Paging and

exclusive Private Carrier Paging

services.42 Under the proposal, a small

business will be defined as either (1) an

entity that, together with its affiliates

and controlling principals, has average

gross revenues for the three preceding

years of not more than $3 million, or (2)

an entity that, together with affiliates

and controlling principals, has average

gross revenues for the three preceding

calendar years of not more than $15

million. Because the SBA has not yet

approved this definition for paging

services, we will utilize the SBA’s

definition applicable to radiotelephone

companies, i.e., an entity employing no

more than 1,500 persons.43 At present,

there are approximately 24,000 Private

Paging licenses and 74,000 Common

Carrier Paging licenses. According to the

most recent Telecommunications

Industry Revenue data, 172 carriers

reported that they were engaged in the

provision of either paging or ‘‘other

mobile’’ services, which are placed

together in the data.44 We do not have

data specifying the number of these

carriers that are not independently

owned and operated or have more than

1,500 employees, and thus are unable at

this time to estimate with greater

precision the number of paging carriers

that would qualify as small business

concerns under the SBA’s definition.

Consequently, we estimate that there are

fewer than 172 small paging carriers

that may be affected by the proposed

rules, if adopted. We estimate that the

majority of private and common carrier

paging providers would qualify as small

entities under the SBA definition.

37. 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.

38. Rural Radiotelephone Service. The

Commission has not adopted a

definition of small entity specific to the

Rural Radiotelephone Service.45 A

significant subset of the Rural

Radiotelephone Service is the Basic

Exchange Telephone Radio Systems

(BETRS).46 We will use the SBA’s

definition applicable to radiotelephone

companies, i.e., an entity employing no

more than 1,500 persons.47 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.

39. Air-Ground Radiotelephone

Service. The Commission has not

adopted a definition of small entity

specific to the Air-Ground

Radiotelephone Service.48 Accordingly,

we will use the SBA’s definition

applicable to radiotelephone companies,

i.e., an entity employing no more than

1,500 persons.49 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.

40. Private Land Mobile Radio

(PLMR). PLMR systems serve an

essential role in a range of industrial,

business, land transportation, and

public safety activities.50 These radios

are used by companies of all sizes

operating in all U.S. business categories.

The Commission has not developed a

definition of small entity specifically

applicable to PLMR licensees due to the

vast array of PLMR users. For the

purpose of determining whether a

licensee is a small business as defined

by the SBA, each licensee would need
41764 Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 / Proposed Rules

51Federal Communications Commission, 60th

Annual Report, Fiscal Year 1994, at 116.

52 47 CFR 101 et seq. (formerly, part 21 of the

Commission’s rules).

53Persons eligible under parts 80 and 90 of the

Commission’s rules can use Private OperationalFixed Microwave services. See 47 CFR parts 80 and

90. Stations in this service are called operationalfixed to distinguish them from common carrier and

public fixed stations. Only the licensee may use the

operational-fixed station, and only for

communications related to the licensee’s

commercial, industrial, or safety operations.

54Auxiliary Microwave Service is governed by

part 74 of Title 47 of the Commission’s rules. See

47 CFR 74 et seq. Available to licensees of broadcast

stations and to broadcast and cable network

entities, broadcast auxiliary microwave stations are

used for relaying broadcast television signals from

the studio to the transmitter, or between two points

such as a main studio and an auxiliary studio. The

service also includes mobile TV pickups, which

relay signals from a remote location back to the

studio.

55 13 CFR 121.201, SIC Code 4812.

56This service is governed by subpart I of part 22

of the Commission’s rules. See 47 CFR 22.1001–

22.1037.

57See, e.g., 47 CFR 41.21, 41.22, 41.31, 41.32.

58 47 CFR 41.31(c) and citing 47 USC 201(b).

59See supra, ¶ 20.

60 47 CFR 1.1206.

61 Id.

62See 47 CFR 1.49.

to be evaluated within its own business

area.

41. The Commission is unable at this

time to estimate the number of, if any,

small businesses which could be

impacted by the rules. However, the

Commission’s 1994 Annual Report on

PLMRs 51 indicates that at the end of

fiscal year 1994 there were 1,087,267

licensees operating 12,481,989

transmitters in the PLMR bands below

512 MHz. Because any entity engaged in

a commercial activity is eligible to hold

a PLMR license, the proposed rules in

this context could potentially impact

every small business in the United

States.

42. Fixed Microwave Services.

Microwave services include common

carrier,52 private-operational fixed,53

and broadcast auxiliary radio services.54

At present, there are approximately

22,015 common carrier fixed 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.55 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.

43. Offshore Radiotelephone Service.

This service operates on several UHF

TV broadcast channels that are not used

for TV broadcasting in the coastal area

of the states bordering the Gulf of

Mexico.56 At present, there are

approximately 55 licensees in this

service. We are unable at this time to

estimate the number of licensees that

would qualify as small entities under

the SBA’s definition for radiotelephone

communications.

44. Wireless Communications

Services. This service can be used for

fixed, mobile, radiolocation 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 affected includes

these eight entities.

45. Description of Proposed

Reporting, Recordkeeping, and Other

Compliance Requirements. The

proposals under consideration in the

NPRM would reduce the reporting and

recordkeeping requirements on common

carriers regulated under the

Communications Act. Part 41 imposes

specific limitations or requirements on

carriers issuing franks to other carriers

not regulated by the Act, and on persons

receiving such franks.57 For example,

§ 41.31(a) and (b), inter alia, require

common carriers issuing lawful franks

to maintain records of issued franks.

Similarly, § 41.31(c) imposes a

recordkeeping requirement on carriers

who provide ‘‘reports of positions of

ships at sea to newspapers of general

circulation, without charge, or at

nominal charges’’ pursuant to section

201(b) of the Act.58 The NPRM proposes

to eliminate part 41 which should

provide a positive economic impact on

affected companies, including small

entities.

46. Steps Taken to Minimize

Significant Economic Impact on Small

Entities, and Significant Alternatives

Considered. The impact of this

proceeding should be beneficial to small

businesses because the proposals set out

in the NPRM would reduce the

reporting or recordkeeping requirements

on all communications common

carriers. As noted in the NPRM,59 we

seek comment on whether any level of

regulation currently within Part 41

should be retained.

47. Federal Rules that May Duplicate,

Overlap, or Conflict With the Proposed

Rule. None.

B. Ex Parte Presentations

48. This proceeding will be treated as

a ‘‘permit-but-disclose’’ proceedings

subject to the ‘‘permit-but-disclose’’

requirements under § 1.1206 of the

Commission’s rules, as revised.60

Additional rules pertaining to oral and

written presentations are set forth in

§ 1.1206.61

C. Comment Filing Procedures

49. General. Pursuant to applicable

procedures set forth in §§ 1.415 and

1.419 of the Commission’s rules, 47 CFR

1.415, 1.419, interested parties shall file

comments not later than August 31,

1998, and reply comments not later than

September 10, 1998. To file formally in

this proceeding, you must file an

original and six copies of all comments,

reply comments, and supporting

comments. If you want each

Commissioner to receive a personal

copy of your comments, you must file

an original and twelve copies.

Comments and reply comments should

be sent to the Secretary, Federal

Communications Commission, 1919 M

Street, NW, Room 222, Washington, DC

20554, with copies to: Thomas J. Beers,

Common Carrier Bureau, Industry

Analysis Division, 2033 M Street, NW,

Room 500, Washington, DC 20554; Scott

K. Bergmann, Common Carrier Bureau,

Industry Analysis Division, 2033 M

Street, NW, Room 500, Washington, DC

20554. Parties should file one copy of

any documents filed in this docket with

the Commission’s copy contractor,

International Transcription Services,

Inc., 1231 20th St., NW, Washington, DC

20037. Comments and reply comments

will be available for public inspection

during regular business hours in the

FCC Reference Center, 1919 M Street,

NW, Room 239, Washington, DC 20554.

50. Other requirements. Comments

and reply comments must also comply

with § 1.49 and all other applicable

sections of the Commission’s rules.62

We also direct all interested parties to

include the name of the filing party and

the date of the filing on each page of

their comments and reply comments.

51. Commenters may also file

informal comments or an exact copy of

formal comments electronically via the

Internet at: <http://

dettifoss.fcc.gov:8080/cgi-bin/ws.exe/

beta/ecfs/upload.hts>. Only one copy of

electronically filed comments must be
Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 / Proposed Rules 41765

submitted. Commenters must note on

the subject line whether an electronic

submission is an exact copy of formal

comments. Commenters also must

include their full name and U.S. Postal

Service mailing address in their

submissions. Further information on the

process of submitting comments

electronically is available at that

location and at <http://www.fcc.gov/efile>.

52. Parties are also asked to submit

comments and reply comments on

diskette. Such diskette submissions

would be in addition to and not a

substitute for the formal filing

requirements addressed above. Parties

submitting diskettes should submit

them to: Ms. Terry Conway, Common

Carrier Bureau, Industry Analysis

Division, 2033 M Street, NW, Room 500,

Washington, DC 20554. Such diskettes

should be on a 3.5 inch diskette

formatted in an IBM compatible format

using WordPerfect 5.1 for Windows

software. The diskette should be

submitted in ‘‘read only’’ mode. The

diskette should be clearly labeled with

the party’s name, proceeding, type of

pleading (comment or reply comments)

and date of submission. The diskette

should be accompanied by a cover

letter.

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

[FR Doc. 98–20819 Filed 8–4–98; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 73

[MM Docket No. 98–135, RM–9300]

Radio Broadcasting Services; Lufkin,

TX

AGENCY: Federal Communications

Commission.

ACTION: Proposed rule.

SUMMARY: This document requests

comments on a petition filed by Russell

L. Lindley, proposing the allotment of

Channel 261A to Lufkin, Texas. The

channel can be allotted to Lufkin at

coordinates 31–16–13 and 94–43–50.

There is a site restriction 8.5 kilometers

(5.3 miles) south of the community.

DATES: Comments must be filed on or

before September 21, 1998, and reply

comments on or before October 6, 1998.

ADDRESSES: Federal Communications

Commission, Washington, DC. 20554. In

addition to filing comments with the

FCC, interested parties should serve the

petitioner’s counsel, as follows: Howard

J. Barr, Patricia M. Chuh, Lee G. Petro,

Pepper & Corazzini, L.L.P., 1176 K

Street, N.W., Suite 200, Washington, DC

20006.

FOR FURTHER INFORMATION CONTACT:

Kathleen Scheuerle, Mass Media

Bureau, (202) 418–2180.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s Notice of

Proposed Rule Making, MM Docket No.

98–135, adopted July 22, 1998, and

released July 31, 1998. The full text of

this Commission decision is available

for inspection and copying during

normal business hours in the

Commission’s Reference Center (Room

239), 1919 M Street, NW., Washington,

DC. The complete text of this decision

may also be purchased from the

Commission’s copy contractors,

International Transcription Services,

Inc., 1231 20th Street, NW.,

Washington, DC 20036, (202) 857–3800,

facsimile (202) 857–3805.

Provisions of the Regulatory

Flexibility Act of 1980 do not apply to

this proceeding.

Members of the public should note

that from the time a Notice of Proposed

Rule Making is issued until the matter

is no longer subject to Commission

consideration or court review, all ex

parte contacts are prohibited in

Commission proceedings, such as this

one, which involve channel allotments.

See 47 CFR 1.1204(b) for rules

governing permissible ex parte contact.

For information regarding proper

filing procedures for comments, see 47

CFR 1.415 and 1.420.

List of Subjects in 47 CFR Part 73

Radio broadcasting.

Federal Communications Commission.

John A. Karousos,

Chief, Allocations Branch, Policy and Rules

Division, Mass Media Bureau.

[FR Doc. 98–20818 Filed 8–4–98; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 73

[MM Docket No. 98–138, RM–9309]

Radio Broadcasting Services;

Whitehall, MT

AGENCY: Federal Communications

Commission.

ACTION: Proposed rule.

SUMMARY: This document requests

comments on a petition filed by

Whitehall Broadcasting Company

proposing the allotment of Channel

274A to Whitehall, Montana, as that

community’s first local broadcast

service. The channel can be allotted to

Whitehall with a site restriction 12.7

kilometers (7.9 miles) northwest of the

community. The coordinates for

Channel 274A are 45–56–11 and 112–

13–51.

DATES: Comments must be filed on or

before September 21, 1998, and reply

comments on or before October 6, 1998.

ADDRESSES: Federal Communications

Commission, Washington, DC. 20554. In

addition to filing comments with the

FCC, interested parties should serve the

petitioner’s counsel, as follows: Frank R.

Jazzo, Andrew S. Kersting, Fletcher,

Heald & Hildreth, P.L.C., 1300 N.

Seventeenth Street, 11th Floor,

Arlington, Virginia 22209.

FOR FURTHER INFORMATION CONTACT:

Kathleen Scheuerle, Mass Media

Bureau, (202) 418–2180.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s Notice of

Proposed Rule Making, MM Docket No.

98–138, adopted July 22, 1998, and

released July 31, 1998. The full text of

this Commission decision is available

for inspection and copying during

normal business hours in the

Commission’s Reference Center (Room

239), 1919 M Street, NW., Washington,

DC. The complete text of this decision

may also be purchased from the

Commission’s copy contractors,

International Transcription Services,

Inc., 1231 20th Street, NW.,

Washington, DC. 20036, (202) 857–3800,

facsimile (202) 857–3805.

Provisions of the Regulatory

Flexibility Act of 1980 do not apply to

this proceeding.

Members of the public should note

that from the time a Notice of Proposed

Rule Making is issued until the matter

is no longer subject to Commission

consideration or court review, all ex

parte contacts are prohibited in

Commission proceedings, such as this

one, which involve channel allotments.

See 47 CFR 1.1204(b) for rules

governing permissible ex parte contact.

For information regarding proper

filing procedures for comments, see 47

CFR 1.415 and 1.420.

List of Subjects in 47 CFR Part 73

Radio broadcasting.

Federal Communications Commission.

John A. Karousos,

Chief, Allocations Branch, Policy and Rules

Division, Mass Media Bureau.

[FR Doc. 98–20815 Filed 8–4–98; 8:45 am]

BILLING CODE 6712–01–P