28718 Federal Register / Vol. 66, No. 101 / Thursday, May, 24, 2001 / Proposed Rules

resolved unless a statement is included

with the application to the effect that

the applicant is unable or unwilling to

resolve the conflict and briefly the

reason therefor;

(viii) Where a number of technical

changes become necessary for a system

during the course of coordination, an

attempt should be made to minimize the

number of separate notifications for

these changes. Where the changes are

incorporated into a completely revised

notice, the items that were changed

from the previous notice should be

identified. When changes are not

numerous or complex, the party

receiving the changed notification

should make an effort to respond in less

than 30 days. When the notifying party

believes a shorter response time is

reasonable and appropriate, it may be

helpful for that party to so indicate in

the notice and perhaps suggest a

response date;

(ix) If, after coordination is

successfully completed, it is determined

that a subsequent change could have no

impact on some parties receiving the

original notification, these parties must

be notified of the change and of the

coordinator’s opinion that no response

is required;

(x) Applicants, permittees and

licensees should supply to all other

applicants, permittees and licensees

within their areas of operations, the

name, address and telephone number of

their coordination representatives. Upon

request from coordinating applicants,

permittees and licensees, data and

information concerning existing or

proposed facilities and future growth

plans in the area of interest should be

furnished unless such request is

unreasonable or would impose a

significant burden in compilation;

(xi) Parties should keep other parties

with whom they are coordinating

advised of changes in plans for facilities

previously coordinated. If applications

have not been filed 6 months after

coordination was initiated, parties may

assume that such frequency use is no

longer desired unless a second

notification has been received within 10

days of the end of the 6 month period.

Renewal notifications are to be sent to

all originally notified parties, even if

coordination has not been successfully

completed with those parties; and

(xii) Any frequency reserved by a

licensee for future use in the bands

subject to this part must be released for

use by another licensee, permittee or

applicant upon a showing by the latter

that it requires an additional frequency

and cannot coordinate one that is not

reserved for future use.

58. Section 78.101 is amended by

removing the entry for 2,025 to 2,110

MHz and adding a new entry for 1,990

to 2,110 MHz in numerical order in the

table in paragraph (a) and adding

paragraph (c) to read as follows:

§ 78.101 Power limitations.

(a) ****

Frequency band (MHz)

Maximum allowable transmitter

power

Maximum allowable EIRP

Fixed (W) Mobile (W) Fixed (dBW) Mobile (dBW)

1,990 to 2,110 .................................................................................................. ........................ 20.0 ........................ +35

*******

* * * * *

(c) The EIRP of transmitters that use

Automatic Transmitter Power Control

(ATPC) shall not exceed the EIRP

specified on the station authorization.

The EIRP of non-ATPC transmitters

shall be maintained as near as

practicable to the EIRP specified on the

station authorization.

§ 78.103 [Amended]

59. Section 78.103 is amended by

removing the entry for 31,000 to 31,300

from the table in paragraph (e).

§ 78.105 [Amended]

60. Section 78.105 is amended by

removing the entries for 31,000 to

31,300 and 38,600 to 40,000, and

Footnotes 2 and 3 from the table in

paragraph (a)(1).

61. Section 78.106 is revised to read

as follows:

§ 78.106 Interference to geostationarysatellites.

Applicants and licensees must

comply with § 101.145 of this chapter to

minimize the potential of interference to

geostationary satellites.

62. Section 78.108 is amended by

revising paragraph (b) to read as follows:

§ 78.108 Minimum path lengths for fixed

links.

* * * * *

(b) For paths shorter than those

specified in the Table in paragraph (a)

of this section, the EIRP shall not exceed

the value derived from the following

equation:

EIRP = MAXEIRP ¥ 40 log(A/B) dBW

Where:

EIRP = The new maximum EIRP

(equivalent isotropically radiated

power) in dBW.

MAXEIRP = Maximum EIRP as set forth

in the Table in § 74.636 of this part.

A = Minimum path length from the

Table above for the frequency band

in kilometers.

B = The actual path length in

kilometers.

Note to Paragraph (b): For transmitters

using Automatic Transmitter Power Control,

EIRP corresponds to the maximum

transmitter power available, not the

coordinated transmit power or the nominal

transmit power.

* * * * *

§ 78.111 [Amended]

63. Section 78.111 is amended by

removing the entry for 31,000 to 31,300

from the table.

[FR Doc. 01–11539 Filed 5–23–01; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 54

[CC Docket Nos. 96–45, 98–171, 90–571, 92–

237, 99–200, 95–116; FCC 01–145]

Federal-State Joint Board on Universal

Service.

AGENCY: Federal Communications

Commission.

ACTION: Proposed rule.

SUMMARY: In this document, the

Commission seeks comment on how to

streamline and reform both the manner

in which the Commission assesses

carrier contributions to the universal

service fund and the manner in which

carriers may recover those costs from

their customers.

DATES: Comments are due on or before

June 25, 2001. Reply comments are due

on or before July 9, 2001. Written

Federal Register / Vol. 66, No. 101 / Thursday, May, 24, 2001 / Proposed Rules 28719

comments by the public on the

proposed and/or modified information

collections discussed in this Notice of

Proposed Rulemaking are due on or

before June 25, 2001. Written comments

must be submitted by the Office of

Management and Budget (OMB) on the

proposed and/or modified information

collections on or before July 23, 2001.

ADDRESSES: All filings must be sent to

the Commission’s Secretary, Magalie

Roman Salas, Office of the Secretary,

Federal Communications Commission,

445 12th Street, S.W., Washington, D.C.

20554. In addition to filing comments

with the Secretary, a copy of any

comments on the information

collection(s) contained herein should be

submitted to Judy Boley, Federal

Communications Commission, Room 1–

C804, 445 12th Street, SW, Washington,

DC 20554, or via the Internet to

jboley@fcc.gov and to Edward C.

Springer, OMB Desk Officer, 10236

NEOB, 725 17th Street, N.W.,

Washington, DC 20503, or via the

Internet to vhuth@omb.eop.gov. Parties

should also send three paper copies of

their filings to Sheryl Todd, Accounting

Policy Division, Common Carrier

Bureau, Federal Communications

Commission, 445 Twelfth Street, S.W.,

Room 5–B540, Washington, D.C. 20554.

Parties who choose to file by paper

should also submit their comments on

diskette. These diskettes should be

submitted to Sheryl Todd, Accounting

Policy Division, Common Carrier

Bureau, Federal Communications

Commission, 445 Twelfth Street, S.W.,

Room 5–B540, Washington, D.C. 20554.

In addition, commenters must send

diskette copies to the Commission’s

copy contractor, International

Transcription Services, Inc., 1231 20th

Street, N.W., Washington, D.C. 20037.

FOR FURTHER INFORMATION CONTACT: Paul

Garnett, Attorney, Common Carrier

Bureau, Accounting Policy Division,

(202) 418–7400.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s Notice of

Proposed Rulemaking (NPRM) in CC

Docket Nos. 96–45, 98–171, 90–571, 92–

237, 99–200, 95–116 released on May 8,

2001. The full text of this document is

available for public inspection during

regular business hours in the FCC

Reference Center, Room CY–A257, 445

Twelfth Street, S.W., Washington, D.C.,

20554.

This NPRM contains proposed

information collection(s) subject to the

Paperwork Reduction Act of 1995

(PRA). It has been submitted to the

Office of Management and Budget

(OMB) for review under the PRA. OMB,

the general public, and other Federal

agencies are invited to comment on the

proposed information collections

contained in this proceeding.

Paperwork Reduction Act

The NPRM contains a proposed

information collection. The

Commission, as part of its continuing

effort to reduce paperwork burdens,

invites the general public and OMB to

comment on the information

collection(s) contained in this NPRM, as

required by the PRA, Public Law 104–

13. Public and agency comments on the

proposed and/or modified information

collections discussed in this Notice of

Proposed Rulemaking are due on or

before June 25, 2001. Written comments

must be submitted by the Office of

Management and Budget (OMB) on the

proposed and/or modified information

collections on or before July 23, 2001.

Comments should address: (a)

Whether the proposed collection of

information is necessary for the proper

performance of the functions of the

Commission, including whether the

information shall have practical utility;

(b) the accuracy of the Commission’s

burden estimates; (c) ways to enhance

the quality, utility, and clarity of the

information collected; and (d) ways to

minimize the burden of the collection of

information on the respondents,

including the use of automated

collection techniques or other forms of

information technology.

OMB Control Number: 3060–0855.

Title: Telecommunications Reporting

Worksheet and Associated

Requirements, CC Docket No. 96–45.

Form No.: FCC Form 499.

Type of Review: Proposed Revised

Collection.

Respondents: Business or other forprofit.

Title Number of

respondents

Est. time per

response

Total annual

burden

1. Assessment on a Revenue Basis ........................................................................................... 5,000 9.5* 81,250

Total Annual Burden: ............................................................................................................ ........................ ........................ 81,250

Cost to Respondents: $0.

* 9.5 hours for respondents that file the annual filing and 6 hours for respondent that file the quarterly filing.

Title Number of

respondents

Est. time per

response

Total annual

burden

2. Assessment on a Flat Fee Basis ............................................................................................ 5,000 6* 45,000

Total Annual Burden: ............................................................................................................ ........................ ........................ 45,000

Cost to Respondents: $0.

* 6 hours for respondents that file the annual filing and 3 hours for respondent that file the quarterly filing.

Title Number of

respondents

Est. time per

response

Total annual

burden

3. Recovery of Universal Service Contributions—Lifeline Exception .......................................... 5,000 1* 7,500

Total Annual Burden: ............................................................................................................ ........................ ........................ 7,500

Cost to Respondents: $0.

* 1 hour for respondents that file the annual filing and .5 hour for respondent that file the quarterly filing.

Needs and Uses: In this Notice of

Proposed Rulemaking, we seek

comment on how to streamline and

reform both the manner in which the

Commission assesses carrier

contributions to the universal service

28720 Federal Register / Vol. 66, No. 101 / Thursday, May, 24, 2001 / Proposed Rules

fund and the manner in which carriers

may recover those costs from their

customers. Section 254 of the

Communications Act of 1934, as

amended by the Telecommunications

Act of 1996, requires carriers providing

interstate telecommunications services

to contribute to universal service. Under

the current universal service rules,

carriers’ contributions are assessed as a

percentage of their interstate and

international end-user

telecommunications revenues. The

Universal Service Administrative

Company would use information filed

on carrier revenues, line counts, or

number of accounts to determine the

quarterly universal service contribution

factor.

Synopsis of NPRM

I. Introduction

1. In this Notice of Proposed

Rulemaking (NPRM), we seek comment

on how to streamline and reform both

the manner in which the Commission

assesses carrier contributions to the

universal service fund and the manner

in which carriers may recover those

costs from their customers. Section 254

of the Communications Act of 1934, as

amended by the Telecommunications

Act of 1996 (the Act), requires carriers

providing interstate telecommunications

services to contribute to universal

service. Under the current universal

service rules, carriers’ contributions are

assessed as a percentage of their

interstate and international end-user

telecommunications revenues. For

carriers electing to recover their

universal service contributions from

their customers, the Commission

generally has not specified a particular

method of recovery. Rather, the

Commission has required that

contributors not shift more than an

equitable share of their contributions to

any customer or group of customers,

and that carriers provide accurate,

truthful, and complete information

regarding the nature of the charge.

2. In this NPRM, we seek comment on

whether and how to streamline and

reform the universal service

contribution methodology. We seek

comment on specific proposals to

require carriers to contribute based on a

percentage of collected revenues, or to

contribute on the basis of a flat-fee

charge, such as a per-line charge.

Additionally, we seek comment on

limiting the manner in which carriers

recover their contribution costs from

their customers. If carriers choose to

recover universal service contributions

from their customers through line items,

we propose to require carriers to do so

through a uniform universal service line

item that corresponds to the

contribution assessment on the carrier.

3. We believe that we may need to

revisit the concepts underlying the

existing contribution system, in light of

current market trends, to ensure that

providers of interstate

telecommunications services continue

to ‘‘contribute, on an equitable and

nondiscriminatory basis, to the specific,

predictable, and sufficient mechanisms

established by the Commission to

preserve and advance universal

service.’’ Since the Commission’s initial

implementation of section 254 of the

Act in 1997, we have seen many

significant developments in the

interstate telecommunications

marketplace. We have witnessed the

entry of new providers into the long

distance market, including Regional Bell

Operating Companies (RBOCs) that have

received approval under section 271 of

the Act to provide interstate

telecommunications. We also are seeing

certain wireline interexchange carriers

suffer declining revenues in light of

growing competition. Growth in the

wireless telecommunications sector, as

well as the advent of Internet Protocol

(IP) telephony, has changed the

dynamics of the interstate

telecommunications market.

Furthermore, many carriers are

bundling services together in creative

ways, such as offering flat-rate packages

that include both interstate and

intrastate telecommunications and nontelecommunications products and

services.

4. Changes to the universal service

contribution methodology may be

necessary to simplify and streamline the

contribution process for carriers. For

example, although not mandated by the

Commission, many carriers choose to

recover most, if not all, of their

universal service contributions through

line items on their customers’ bills.

Even though the Commission sets a

uniform contribution factor for

universal service, carriers may decide to

boost this factor in order to account for

‘‘uncollectible’’ revenue and other

variables. We believe that this process

may require carriers to engage in

complex calculations in order to fully

recover their contribution costs through

a line item on customer bills.

5. We also have concerns about the

extent to which the universal service

line item fee varies from one carrier to

the next, even though the contribution

factor set by the Commission is uniform

across carriers. For example, in the

fourth quarter 2000, the Commission

established a contribution factor of

5.6688 percent. The major

interexchange carriers, however,

imposed line-item fees on residential

and business customers ranging from

approximately 5.9 percent to 8.6

percent. For the second quarter of 2001,

after the Commission established a

contribution factor of 6.8823%, one

interexchange carrier raised its

residential line item to 12%. This

discrepancy between the contribution

factor and the amount carriers charge

consumers is inexplicable to the casual

observer. Moreover, it appears that some

carriers have chosen to recover

universal service contributions through

a line item on only certain classes of

customers. Some carriers may be

recovering universal service

contributions from pre-subscribed

customers through line items that are

well in excess of the contribution factor,

while recovering, through service rates,

an unidentified amount of such costs

from other customers of services such as

pre-paid calling cards or dial-around

service. The end result may be that

certain customer classes are bearing a

disproportionate share of the carrier’s

cost of universal service contributions,

which could, in some circumstances, be

inconsistent with the Commission’s

directive that contributors not shift

more than an equitable share of their

contributions to any customer or group

of customers.

6. The Commission has an obligation

to ensure that the universal service

contribution system remains consistent

with the statute, is reflective of current

market trends, is simple for carriers to

administer, and does not shift more than

an equitable share of carrier

contributions to any class of customers.

We therefore conclude that we should

revisit the issue of how contributions to

the universal service fund are assessed

on carriers and how carriers may

recover such contribution costs from

consumers. In this NPRM, we seek

comment on how to streamline the

assessment and recovery of universal

service contributions, especially in light

of recent developments in the

telecommunications marketplace, while

maintaining a universal service fund

that is consistent with the requirements

of the Act. We welcome input from all

segments of the industry, consumer

groups, state commissions, and the

members of the Federal-State Joint

Board on Universal Service (Joint

Board).

II. Procedural Issues

A. Ex Parte

7. This is a non-restricted notice and

comment rulemaking proceeding. Ex

parte presentations are permitted,

Federal Register / Vol. 66, No. 101 / Thursday, May, 24, 2001 / Proposed Rules 28721

except during the Sunshine Agenda

period, provided they are disclosed as

provided in the Commission’s rules.

B. Initial Paperwork Reduction Act of

1995 Analysis

8. This NPRM contains either a

proposed or modified information

collection. As part of a continuing effort

to reduce paperwork burdens, we invite

the general public and the Office of

Management and Budget (OMB) to take

this opportunity to comment on the

information collections contained in

this NPRM, as required by the

Paperwork Reduction Act of 1995,

Public Law 104–13. Public and agency

comments are due at the same time as

other comments on this NPRM; OMB

comments are due July 23, 2001.

Comments should address: (a) Whether

the proposed collection of information

is necessary for the proper performance

of the functions of the Commission,

including whether the information shall

have practical utility; (b) the accuracy of

the Commission’s burden estimates; (c)

ways to enhance the quality, utility, and

clarity of the information collected; and

(d) ways to minimize the burden of the

collection of information on the

respondents, including the use of

automated collection techniques or

other forms of information technology.

C. Initial Regulatory Flexibility Act

Analysis

9. 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. Written public comments

are requested on this IRFA. Comments

must be identified as responses to the

IRFA and must be filed by the deadlines

for comments on the NPRM provided.

The Commission will send a copy of the

NPRM, including this IRFA, to the Chief

Counsel for Advocacy of the Small

Business Administration. In addition,

the NPRM and IRFA (or summaries

thereof) will be published in the Federal

Register.

1. Need for and Objectives of the

Proposed Rules

10. The Commission seeks comment

in this NPRM as a part of its

implementation of the Act’s mandate

that ‘‘[e]very telecommunications carrier

that provides interstate

telecommunications services shall

contribute, on an equitable and

nondiscriminatory basis, to the specific,

predictable, and sufficient mechanisms

established by the Commission to

preserve and advance universal

service.’’ Specifically, we seek comment

on how to streamline and reform both

the manner in which the Commission

assesses carrier contributions to the

universal service fund and the manner

in which carriers may recover those

costs from their customers. We seek

comment on whether and how to revise

the universal service contribution

methodology. We seek comment on

specific proposals to require carriers to

contribute based on a percentage of

collected revenues, or to contribute on

the basis of a flat-fee charge, such as a

per-line charge. Additionally, we seek

comment on limiting the manner in

which carriers recover contribution

costs from end users. If carriers choose

to recover universal service

contributions from their end users

through line items, we propose to

require carriers to do so through a

uniform universal service line item that

corresponds to the contribution

assessment on the carrier.

2. Legal Basis

11. The legal basis as proposed for

this NPRM is contained in sections 4(i),

4(j), 201–205, 254, and 403 of the

Communications Act of 1934, as

amended by the Telecommunications

Act of 1996, 47 U.S.C. 4(i), 4(j), 201–

205, 254, 403.

3. Description and Estimate of the

Number of Small Entities to Which

Rules Will Apply

12. The Commission’s contributor

reporting requirements apply to a wide

range of entities, including all

telecommunications carriers and other

providers of interstate

telecommunications services that offer

telecommunications services for a fee.

Thus, we expect that the rules adopted

in this proceeding could have a

significant economic impact on a

substantial number of small entities. Of

the estimated 5,000 filers of the

Telecommunications Reporting

Worksheet, FCC Form 499, we do not

know how many are small entities, but

we offer a detailed estimate of the

number of small entities within each of

several major carrier-type categories.

13. To estimate the number of small

entities that could be affected by these

proposed rules, we first consider the

statutory definition of ‘‘small entity’’

under the RFA. 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 that: (1) Is independently

owned and operated; (2) is not

dominant in its field of operation; and

(3) satisfies any additional criteria

established by the Small Business

Administration (SBA). A small

organization is generally ‘‘any not-forprofit enterprise which is independently

owned and operated and is not

dominant in its field.’’

14. The SBA has defined a small

business for Standard Industrial

Classification (SIC) categories 4812

(Radiotelephone Communications) and

4813 (Telephone Communications,

Except Radiotelephone) to be small

entities when they have no more than

1,500 employees. We first discuss the

number of small telephone companies

falling within these SIC categories, then

attempt to refine further those estimates

to correspond with the categories of

telecommunications companies that are

commonly used under our rules.

15. A ‘‘small business’’ under the RFA

is one that, inter alia, meets the

pertinent small business size standard

(e.g., a telephone communications

business having 1,500 or fewer

employees), and ‘‘is not dominant in its

field of operation.’’ The SBA’s Office of

Advocacy contends that, for RFA

purposes, small incumbent LECs are not

dominant in their field of operation

because any such dominance is not

‘‘national’’ in scope. We have therefore

included small incumbent LECs in this

RFA analysis, although we emphasize

that this RFA action has no effect on

Commission analyses and

determinations in other, non-RFA

contexts.

16. The most reliable source of

information regarding the total numbers

of common carrier and related providers

nationwide, including the numbers of

commercial wireless entities, appears to

be data the Commission publishes

annually in its Trends in Telephone

Service report. According to data in the

most recent report, there are 4,822

interstate carriers. These carriers

include, inter alia, incumbent local

exchange carriers, competitive local

exchange carriers, competitive access

providers, interexchange carriers, other

wireline carriers and service providers

(including shared-tenant service

providers and private carriers), operator

service providers, pay telephone

operators, providers of telephone toll

service, wireless carriers and services

providers, and resellers.

17. 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

28722 Federal Register / Vol. 66, No. 101 / Thursday, May, 24, 2001 / Proposed Rules

providing telephone services, as defined

therein, for at least one year. This

number contains a variety of different

categories of carriers, including local

exchange carriers, interexchange

carriers, competitive access providers,

cellular carriers, mobile service carriers,

operator service providers, pay

telephone operators, PCS providers,

covered SMR providers, and resellers. It

seems certain that some of those 3,497

telephone service firms may not qualify

as small entities or small incumbent

LECs because they are not

‘‘independently owned and operated.’’

For example, a PCS provider that is

affiliated with an interexchange carrier

having more than 1,500 employees

would not meet the definition of a small

business. It seems reasonable to

conclude, therefore, that fewer than

3,497 telephone service firms are small

entity telephone service firms or small

incumbent LECs that may be affected by

the decisions and rules adopted in this

Order.

18. Wireline Carriers and Service

Providers. SBA has developed a

definition of small entities for telephone

communications companies other than

radiotelephone companies. The Census

Bureau reports that, there were 2,321

such telephone companies in operation

for at least one year at the end of 1992.

According to SBA’s definition, a small

business telephone company other than

a radiotelephone company is one

employing no more than 1,500 persons.

All but 26 of the 2,321 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 adopted in this

Order.

19. Local Exchange Carriers,

Interexchange Carriers, Competitive

Access Providers, Operator Service

Providers, Payphone Providers, and

Resellers. Neither the Commission nor

SBA has developed a definition

particular to small local exchange

carriers (LECs), interexchange carriers

(IXCs), competitive access providers

(CAPs), operator service providers

(OSPs), payphone providers or resellers.

The closest applicable definition for

these carrier-types under SBA rules is

for telephone communications

companies other than radiotelephone

(wireless) companies. The most reliable

source of information regarding the

number of these carriers nationwide of

which we are aware appears to be the

data that we collect annually on the

Form 499–A. According to our most

recent data, there are 1,335 incumbent

LECs, 349 CAPs, 204 IXCs, 21 OSPs, 758

payphone providers and 541 resellers.

Although it seems certain that some of

these carriers are not independently

owned and operated, or have more than

1,500 employees, we are unable at this

time to estimate with greater precision

the number of these carriers that would

qualify as small business concerns

under SBA’s definition. Consequently,

we estimate that there are fewer than

1,335 incumbent LECs, 349 CAPs, 204

IXCs, 21 OSPs, 758 payphone providers,

and 541 resellers that may be affected by

the decisions and rules adopted in this

Order.

20. Cellular Licensees. Neither the

Commission nor the SBA has developed

a definition of small entities applicable

to cellular licensees. The applicable

definition of small entity is the

definition under the SBA rules

applicable to radiotelephone (wireless)

companies. This provides that a small

entity is a radiotelephone company

employing no more than 1,500 persons.

According to the Bureau of the Census,

only twelve radiotelephone firms from a

total of 1,178 such firms which operated

during 1992 had 1,000 or more

employees. Even if all twelve of these

firms were cellular telephone

companies, nearly all cellular carriers

were small businesses under the SBA’s

definition. In addition, we note that

there are 1,758 cellular licenses;

however, a cellular licensee may own

several licenses. According to the most

recent Trends Report, 806 carriers

reported that they were engaged in the

provision of either cellular service or

Personal Communications Service (PCS)

services, which are placed together in

the data. 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

are unable at this time to estimate with

greater precision the number of cellular

service carriers that would qualify as

small business concerns under the

SBA’s definition. We estimate that there

are fewer than 806 small cellular service

carriers that may be affected by the

proposed rules, if adopted.

21. 220 MHz Radio Service—Phase I

Licensees. The 220 MHz service has

both Phase I and Phase II licenses. Phase

I licensing was conducted by lotteries in

1992 and 1993. There are approximately

1,515 such non-nationwide licensees

and four nationwide licensees currently

authorized to operate in the 220 MHz

band. The Commission has not

developed a definition of small entities

specifically applicable to such

incumbent 220 MHz Phase I licensees.

To estimate the number of such

licensees that are small businesses, we

apply the definition under the SBA

rules applicable to Radiotelephone

Communications companies. This

definition provides that a small entity is

a radiotelephone company employing

no more than 1,500 persons. According

to the Bureau of the Census, only 12

radiotelephone firms out of a total of

1,178 such firms which operated during

1992 had 1,000 or more employees. If

this general ratio continues in the

context of Phase I 220 MHz licensees,

we estimate that nearly all such

licensees are small businesses under the

SBA’s definition.

22. 220 MHz Radio Service—Phase II

Licensees. The Phase II 220 MHz service

is a new service, and is subject to

spectrum auctions. In the 220 MHz

Third Report and Order, 62 FR 16004,

April 3, 1997, we adopted criteria for

defining small and very small

businesses for purposes of determining

their eligibility for special provisions

such as bidding credits and installment

payments. We have defined a small

business as an entity that, together with

its affiliates and controlling principals,

has average gross revenues not

exceeding $15 million for the preceding

three years. A very small business is

defined as an entity that, together with

its affiliates and controlling principals,

has average gross revenues that are not

more than $3 million for the preceding

three years. The SBA has approved

these definitions. An auction of Phase II

licenses commenced on September 15,

1998, and closed on October 22, 1998.

Two auctions of Phase II licenses have

been conducted. In the first auction,

nine hundred and eight (908) licenses

were auctioned in 3 different-sized

geographic areas: three nationwide

licenses, 30 Regional Economic Area

Group Licenses, and 875 Economic Area

(EA) Licenses. Of the 908 licenses

auctioned, 693 were sold. Companies

claiming small business status won: One

of the Nationwide licenses, 67% of the

Regional licenses, and 54% of the EA

licenses. The second auction included

225 licenses: 216 EA licenses and 9 EAG

Federal Register / Vol. 66, No. 101 / Thursday, May, 24, 2001 / Proposed Rules 28723

licenses. Fourteen companies claiming

small business status won 158 licenses.

23. Private and Common Carrier

Paging. In the Paging Third Report and

Order, we adopted criteria for defining

small businesses and very small

businesses for purposes of determining

their eligibility for special provisions

such as bidding credits and installment

payments. We have defined a small

business as an entity that, together with

its affiliates and controlling principals,

has average gross revenues not

exceeding $15 million for the preceding

three years. Additionally, a very small

business is defined as an entity that,

together with its affiliates and

controlling principals, has average gross

revenues that are not more than $3

million for the preceding three years.

The SBA has approved these

definitions. An auction of Metropolitan

Economic Area (MEA) licenses

commenced on February 24, 2000, and

closed on March 2, 2000. Of the 985

licenses auctioned, 440 were sold. Fiftyseven companies claiming small

business status won. At present, there

are approximately 24,000 Private-Paging

site-specific licenses and 74,000

Common Carrier Paging licenses.

According to the most recent Trends

Report, 427 carriers reported that they

were engaged in the provision of paging

and messaging services. 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 therefore 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 427 small

paging carriers that may be affected by

the decisions and rules adopted in this

Order. We estimate that the majority of

private and common carrier paging

providers would qualify as small

entities under the SBA definition.

24. Broadband Personal

Communications Service (PCS). The

broadband PCS spectrum is divided into

six frequency designated A through F,

and the Commission has held auctions

for each block. The Commission defined

‘‘small entity’’ for Blocks C and F as an

entity that has average gross revenues of

less than $40 million in the three

previous calendar years. For Block F, an

additional classification for ‘‘very small

business’’ was added and is defined as

an entity that, together with their

affiliates, has average gross revenues of

not more than $15 million for the

preceding three calendar years. These

regulations defining ‘‘small entity’’ in

the context of broadband PCS auctions

have been approved by the SBA. No

small businesses within the SBAapproved 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. On March 23, 1999, the

Commission re-auctioned 347 C, D, E,

and F Block licenses; there were 48

small business winning bidders. Based

on this information, we conclude that

the number of small broadband PCS

licensees will include the 90 winning C

Block bidders and the 93 qualifying

bidders in the D, E, and F blocks, plus

the 48 winning bidders in the reauction, for a total of 231 small entity

PCS providers as defined by the SBA

and the Commission’s auction rules. On

January 26, 2001, the Commission

completed the auction of 422 C and F

Broadband PCS licenses in Auction No.

35. Of the 35 winning bidders in this

auction, 29 qualified as small or very

small businesses.

25. Narrowband PCS. To date, two

auctions of narrowband PCs licenses

have been conducted. Through these

auctions, the Commission has awarded

a total of 41 licenses, out of which 11

were obtained by small businesses. For

purposes of the two auctions that have

already been held, small businesses

were defined as entities with average

gross revenues for the prior three

calendar years of $40 million or less. To

ensure meaningful participation of

small business entities in the auctions,

the Commission adopted a two-tiered

definition of small businesses in the

Narrowband PCS Second Report and

Order, 65 FR 35875, June 6, 2000. A

small business is an entity that, together

with affiliates and controlling interests,

has average gross revenues for the three

preceding years of not more than $40

million. A very small business is an

entity that, together with affiliates and

controlling interests, has average gross

revenues for the three preceding years of

not more than $15 million. These

definitions have been approved by the

SBA. In the future, the Commission will

auction 459 licenses to serve MTAs and

408 response channel licenses. There is

also one megahertz of narrowband PCS

spectrum that has been held in reserve

and that the Commission has not yet

decided to release for licensing. The

Commission cannot predict accurately

the number of licenses that will be

awarded to small entities in future

auctions. However, four of the 16

winning bidders in the two previous

narrowband PCS auctions were small

businesses, as that term was defined

under the Commission’s Rules. The

Commission assumes, for purposes of

this IRFA, that a large portion of the

remaining narrowband PCS licenses

will be awarded to small entities. The

Commission also assumes that at least

some small businesses will acquire

narrowband PCS licenses by means of

the Commission’s partitioning and

disaggregation rules.

26. Rural Radiotelephone Service. The

Commission has not adopted a

definition of small entity specific to the

Rural Radiotelephone Service. A

significant subset of the Rural

Radiotelephone Service is the Basic

Exchange Telephone Radio Systems

(BETRS). We will use the SBA’s

definition applicable to radiotelephone

companies, i.e., an entity employing no

more than 1,500 persons. There are

approximately 1,000 licensees in the

Rural Radiotelephone Service, and we

estimate that almost all of them qualify

as small entities under the SBA’s

definition.

27. Air-Ground Radiotelephone

Service. The Commission has not

adopted a definition of small entity

specific to the Air-Ground

Radiotelephone Service. We will use the

SBA’s definition applicable to

radiotelephone companies, i.e., an

entity employing no more than 1,500

persons. There are approximately 100

licensees in the Air-Ground

Radiotelephone Service, and we

estimate that almost all of them qualify

as small under the SBA definition.

28. Specialized Mobile Radio (SMR).

Pursuant to 47 CFR 90.814(b)(1), the

Commission has defined ‘‘small

business’’ for purposes of auctioning

900 MHz SMR licenses, 800 MHz SMR

licenses for the upper 200 channels, and

800 MHz SMR licenses for the lower

230 channels on the 800 MHz band, as

a firm that has had average annual gross

revenues of $15 million or less in the

three preceding calendar years. The

SBA has approved this small business

size standard for the 800 MHz and 900

MHz auctions. Sixty winning bidders

for geographic area licenses in the 900

MHz SMR band qualified as small

business under the $15 million size

standard. The auction of the 525 800

MHz SMR geographic area licenses for

the upper 200 channels began on

October 28, 1997, and was completed on

December 8, 1997. Ten winning bidders

for geographic area licenses for the

upper 200 channels in the 800 MHz

SMR band qualified as small businesses

under the $15 million size standard. An

auction of 800 MHz SMR geographic

area licenses for the General Category

channels began on August 16, 2000 and

28724 Federal Register / Vol. 66, No. 101 / Thursday, May, 24, 2001 / Proposed Rules

was completed on September 1, 2000.

Of the 1,050 licenses offered in that

auction, 1,030 licenses were sold.

Eleven winning bidders for licenses for

the General Category channels in the

800 MHz SMR band qualified as small

business under the $15 million size

standard. In an auction completed on

December 5, 2000, a total of 2,800 EA

licenses in the lower 80 channels of the

800 MHz SMR service were sold. Of the

22 winning bidders, 19 claimed small

business status. In addition, there are

numerous incumbent site-by-site SMR

licenses on the 800 and 900 MHz band.

29. We do not know how many firms

provide 800 MHz or 900 MHz

geographic area SMR service pursuant

to extended implementation

authorizations, nor how many of these

providers have annual revenues of no

more than $15 million. One firm has

over $15 million in revenues. We

assume, for purposes of this FRFA, that

all of the remaining existing extended

implementation authorizations are held

by small entities, as that term is defined

by the SBA.

30. For geographic area licenses in the

900 MHz SMR band, there are 60 who

qualified as small entities. For the 800

MHz SMR’s, 38 are small or very small

entities.

4. Description of Projected Reporting,

Recordkeeping, and Other Compliance

Requirements

31. Any decisions on rule changes

adopted in this proceeding potentially

could modify the reporting and

recordkeeping requirements of

telecommunications service providers

regulated under the Communications

Act. As discussed previously, we

potentially could require

telecommunications service providers to

file additional and/or different monthly

or quarterly reports. In addition, we

seek comment on whether to modify or

eliminate the interim safe harbor for

wireless telecommunications carriers.

We also seek comment on whether to

eliminate the de minimis exemption

from universal service contribution

requirements. Any such reporting

requirements potentially could require

the use of professional skills, including

legal and accounting expertise. Without

more data, we cannot accurately

estimate the cost of compliance with a

carrier surcharge by small

telecommunications service providers.

In this NPRM, we therefore seek

comment on the frequency with which

carriers subject to a carrier surcharge

should submit reports to USAC, the

types of burdens carriers will face in

periodically submitting reports to

USAC, and whether the costs of such

reporting are outweighed by the

potential benefits of a carrier surcharge.

Entities, especially small businesses, are

encouraged to quantify the costs and

benefits of carrier surcharge reporting

requirement proposals.

5. Steps Taken to Minimize Significant

Economic Impact on Small Entities, and

Significant Alternatives Considered

32. 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 (among

others): (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.

33. As discussed previously, this

NPRM seeks comment on how to

streamline and reform both the manner

in which the Commission assesses

carrier contributions to the universal

service fund and the manner in which

carriers may recover those costs from

their customers. We seek comment on

whether and how to revise the universal

service contribution methodology. We

seek comment on specific proposals to

require carriers to contribute based on a

percentage of collected revenues, or to

contribute on the basis of a flat-fee

charge, such as a per-line charge.

Additionally, we seek comment on

limiting the manner in which carriers

recover contribution costs from end

users. If carriers choose to recover

universal service contributions from

their end users through line items, we

propose to require carriers to do so

through a uniform universal service line

item that corresponds to the

contribution assessment on the carrier.

The NPRM also seeks comment on any

other mechanisms for the assessment

and recovery of universal service

contributions.

34. Wherever possible, the NPRM

proposes general rules, or alternative

rules to reduce the administrative

burden and cost of compliance for small

telecommunications service providers.

As discussed, under the current

universal service contribution rules

interstate telecommunications service

providers whose annual universal

service contribution is expected to be

less than $10,000 are not required to

contribute to the universal service

mechanisms. In this NPRM, we seek

comment on the impact of the proposed

contribution assessment methodologies

on the current de minimis exemption to

the universal service contribution

requirement. We specifically seek

comment on whether to retain, modify,

or eliminate the de minimis exemption.

We also more generally seek comment

from small businesses on the costs and

benefits of reporting requirements

associated with the various proposed

universal service assessment

methodologies. Finally, the NPRM seeks

comment on measures to avoid

significant economic impact on small

business entities, as defined by section

601(3) of the Regulatory Flexibility Act.

6. Federal Rules that May Duplicate,

Overlap, or Conflict with the Proposed

Rules

35. None.

D. Comment Filing Procedures

36. Pursuant to sections 1.415 and

1.419 of the Commission’s rules, 47 CFR

1.415, 1.419, interested parties may file

comments June 25, 2001, and reply

comments July 9, 2001. Comments may

be filed using the Commission’s

Electronic Comment Filing System

(ECFS) or by filing paper copies.

37. Comments filed through the ECFS

can be sent as an electronic file via the

Internet to <http://www.fcc.gov/e-file/

ecfs.html>. Generally, only one copy of

an electronic submission must be filed.

If multiple docket or rulemaking

numbers appear in the caption of this

proceeding, however, commenters must

transmit one electronic copy of the

comments to each docket or rulemaking

number referenced in the caption. In

completing the transmittal screen,

commenters should include their full

name, Postal Service mailing address,

and the applicable docket or rulemaking

number. Parties may also submit an

electronic comment by Internet e-mail.

To get filing instructions for e-mail

comments, commenters should send an

e-mail to ecfs@fcc.gov, and should

include the following words in the body

of the message, ‘‘get form <your e-mail

address>.’’ A sample form and

directions will be sent in reply.

38. Parties who choose to file by

paper must file an original and four

copies of each filing. If more than one

docket or rulemaking number appear in

the caption of this proceeding,

commenters must submit two additional

copies for each additional docket or

rulemaking number. All filings must be

sent to the Commission’s Secretary,

Magalie Roman Salas, Office of the

Secretary, Federal Communications

Commission, 445 12th Street, S.W.,

Washington, D.C. 20554.

Federal Register / Vol. 66, No. 101 / Thursday, May, 24, 2001 / Proposed Rules 28725

39. Parties who choose to file by

paper should also submit their

comments on diskette. These diskettes

should be submitted to: Sheryl Todd,

Accounting Policy Division, 445 12th

Street, S.W., Washington, D.C. 20554.

Such a submission should be on a 3.5-

inch diskette formatted in an IBM

compatible format using Word or

compatible software. The diskette

should be accompanied by a cover letter

and should be submitted in ‘‘read only’’

mode. The diskette should be clearly

labeled with the commenter’s name,

proceeding (including the docket

number, in this case CC Docket No. 96–

45, type of pleading (comment or reply

comment), date of submission, and the

name of the electronic file on the

diskette. The label should also include

the following phrase ‘‘Disk Copy—Not

an Original.’’ Each diskette should

contain only one party’s pleadings,

preferably in a single electronic file. In

addition, commenters must send

diskette copies to the Commission’s

copy contractor, International

Transcription Service, Inc., 1231 20th

Street, N.W., Washington, D.C. 20037.

40. Written comments by the public

on the proposed and/or modified

information collections are due on or

before June 25, 2001. Written comments

must be submitted by the Office of

Management and Budget (OMB) on the

proposed and/or modified information

collections on or before July 23, 2001.

III. Ordering Clauses

41. Pursuant to the authority

contained in sections 4(i), 4(j), 201–205,

254, and 403 of the Communications

Act of 1934, as amended, this Notice of

Proposed Rulemaking is adopted.

42. 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 54

Reporting and recordkeeping

requirements, Telecommunications,

Telephone.

Federal Communications Commission.

William F. Caton,

Deputy Secretary.

[FR Doc. 01–13114 Filed 5–23–01; 8:45 am]

BILLING CODE 6712–01–P

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric

Administration

50 CFR Part 622

[I.D. 051501D]

Fisheries of the Caribbean, Gulf of

Mexico, and South Atlantic;

Amendment 5 to the Fishery

Management Plan for the Shrimp

Fishery off the Southern Atlantic

States

AGENCY: National Marine Fisheries

Service (NMFS), National Oceanic and

Atmospheric Administration (NOAA),

Commerce.

ACTION: Notice of intent to prepare a

draft supplemental environmental

impact statement (DSEIS); request for

comments.

SUMMARY: The South Atlantic Fishery

Management Council (Council) intends

to prepare a DSEIS to assess the impacts

on the natural and human environment

of management measures proposed in

its draft Amendment 5 to the Fishery

Management Plan for the Shrimp

Fishery of the South Atlantic Region

(FMP). The purpose of this document is

to solicit public comments on the scope

of the issues to be addressed in the

DSEIS and to provide information on

the Council’s intended schedule for

completing the DSEIS and submitting it

to NMFS for filing and for further public

comment.

DATES: Written comments on the scope

of the issues to be addressed by the

DSEIS for draft Amendment 5 must be

received by the Council by June 25,

2001.

ADDRESSES: Written comments on the

scope of the DSEIS and requests for

additional information on the

management measures proposed in draft

Amendment 5 should be sent to the

South Atlantic Fishery Management

Council, One Southpark Circle, Suite

306, Charleston, SC 29407–4699; phone:

843–571–4366; fax: 843–769–4520; email: Kim.Iverson@noaa.govor

Robert.Mahood@noaa.gov.

FOR FURTHER INFORMATION CONTACT: Kim

Iverson, 843–571–4366, or Dr. Peter

Eldridge, NMFS, 727–570–5305.

SUPPLEMENTARY INFORMATION:

Management measures for rock shrimp

under the FMP apply in the exclusive

economic zone (EEZ) in the South

Atlantic. For the purposes of the FMP

and its implementing regulations, the

South Atlantic consists of the Atlantic

Ocean off the southern Atlantic states

(i.e., from the Virginia/North Carolina

border through the Florida Keys). The

FMP currently establishes the following

management measures for rock shrimp:

Federal fishing vessel permits necessary

to fish for, sell, transfer, or possess rock

shrimp in or from the South Atlantic

EEZ; Federal dealer permits to receive

rock shrimp harvested in the South

Atlantic EEZ; requirement for selected

dealers to report receipts and prices of

rock shrimp harvested from the South

Atlantic EEZ; and a prohibition on

fishing for or possessing rock shrimp in

or from the Oculina Bank habitat area of

particular concern.

The Council is preparing draft

Amendment 5 to the FMP. Amendment

5 will address the following issues: (1)

The implementation of a limited entry

program for the rock shrimp fishery to

remove speculative interests from the

fishery and ensure the economic

viability of the rock shrimp industry; (2)

the establishment of mesh size

restrictions to reduce the harvest of

small rock shrimp; (3) the requirement

for vessel operator permits and vessel

monitoring systems to ensure better

compliance with the FMP’s

management measures and

implementing regulations; and (4) the

specification of geographic areas within

which these aforementioned

management measures would apply.

The Council is preparing a DSEIS as

an integrated part of Amendment 5. The

DSEIS will describe the amendment’s

proposed management measures and

their reasonable alternatives and will

assess the environmental impacts of

these proposed and alternative

measures. The Council is requesting

written comments on the scope of the

issues to be addressed in the DSEIS.

Based on input to be received during

7 public hearings that the Council is

conducting from May 3, 2001, through

June 19, 2001 (see notice of these

hearings at 66 FR 22144) on a

preliminary draft of Amendment 5 and

associated DSEIS, the Council intends to

revise draft Amendment 5, as

appropriate, and to finalize the DSEIS.

The Council intends that the current

public hearings on its preliminary draft

Amendment 5 and DSEIS supplement,

for scoping purposes, the three scoping

meetings it held in 1994 to invite initial

public input on the scope of the issues

to be addressed by Amendment 5 and

the types of environmental impacts

associated with alternative management

measures, including those proposed

measures listed here. With the

exception of the requirement for

operator permits, which was

disapproved by NMFS as contained in

a previous FMP amendment, these

management measures have not been