Federal Register / Vol. 66, No. 113 / Tuesday, June 12, 2001 / Proposed Rules 31589

operation of the hybrid system, with the

frequency hopping operation turned off,

shall comply with the power density

requirements of paragraph (d) of this

section.

(f) Frequency hopping systems are not

required to employ all available

hopping channels during each

transmission. However, the system,

consisting of both the transmitter and

the receiver, must be designed to

comply with all of the regulations in

this section should the transmitter be

presented with a continuous data (or

information) stream. In addition, a

system employing short transmission

bursts must comply with the definition

of a frequency hopping system and must

distribute its transmissions over the

minimum number of hopping channels

specified in this section.

(g) The incorporation of intelligence

within a frequency hopping system that

permits the system to recognize other

users within the spectrum band so that

it individually and independently

chooses and adapts its hopsets to avoid

hopping on occupied channels is

permitted. The coordination of

frequency hopping systems in any other

manner for the express purpose of

avoiding the simultaneous occupancy of

individual hopping frequencies by

multiple transmitters is not permitted.

* * * * *

[FR Doc. 01–14526 Filed 6–11–01; 8:45 am]

BILLING CODE 6712–01–U

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Parts 22 and 24

[WT Docket No. 01–108; FCC 01–153]

Year 2000 Biennial Regulatory Review

To Modify or Eliminate Outdated Rules

Affecting the Cellular Radiotelephone

Service and the Commercial Mobile

Radio Services

AGENCY: Federal Communications

Commission.

ACTION: Proposed rule.

SUMMARY: In this document, the

Commission, pursuant to its year 2000

Biennial Review of regulations,

proposes to modify or eliminate

regulations that have become outdated

as a result of technological change,

increased competition in the

Commercial Mobile Radio Services

(CMRS), supervening changes to related

Commission rules, or a combination of

these factors. The Commission focuses

its review on the cellular rules, although

it also considers modification or

elimination of certain other rules that

affect all Public Mobile Services. The

NPRM specifically addresses the

following rules: cellular service

requirements and limitations; cellular

technical rules, including the analog

cellular compatibility standard, the

electronic serial number rule,

channelization requirements,

modulation requirements and in-band

emissions limitations, the wave

polarization requirement, assignment of

system identification numbers,

determination of cellular geographic

service area, and service

commencement and construction

periods; the incidental services rule;

and the cellular anti-trafficking rules.

DATES: Comments are due on or before

July 2, 2001; reply comments are due on

or before August 1, 2001. Written

comments by the public on the

proposed information collections are

due on or before July 2, 2001. Written

comments must be submitted by the

Office of Management and Budget

(OMB) on the modified information

collection(s) on or before August 13,

2001.

ADDRESSES: Parties who choose to file

comments by paper should send

comments to the Commission’s

Secretary, Magalie Roman Salas, Office

of the Secretary, Federal

Communications Commission, 445 12th

Street, SW.; TW–A325; Washington, DC

20554. Comments filed through the

Commission’s Electronic Comment

Filing System (ECFS) can be sent as an

electronic file via the Internet to

http://www.fcc.gov/e-file/ecfs.html. In

addition to filing comments with the

Secretary, a copy of any comments on

the information collections 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,

Room 10236 NEOB, 725 17th Street,

NW., Washington, DC 20503 or via the

Internet to

edward.springer@omb.eop.gov.

FOR FURTHER INFORMATION CONTACT:

Lauren Van Wazer at (202) 418–0030

(Wireless Telecommunications Bureau).

For additional information concerning

the information collection(s) contained

in this document, contact Judy Boley at

202–418–0214, or via the Internet at

jboley@fcc.gov.

SUPPLEMENTARY INFORMATION: This is a

summary of the Notice of Proposed

Rulemaking (‘‘NPRM’’) in WT Docket

No. 01–108, FCC 01–153, adopted May

3, 2001 and released May 17, 2001. The

complete text of the document is

available for inspection and copying

during normal business hours in the

FCC Reference Center, 445 12th Street,

SW., Washington, DC and also may be

purchased from the Commission’s copy

contractor, International Transcription

Services, (202) 857–3800, 445 12th

Street, SW., CY–B400, Washington, DC

20554. The document is also available

via the Internet at http://www.fcc.gov/

Bureaus/Wireless/Orders/2000/

fcc01153.pdf. This Notice of Proposed

Rulemaking 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.

I. Paperwork Reduction Act

1. This NPRM contains proposed

revisions to existing information

collections. The Commission, as part of

its continuing effort to reduce

paperwork burdens, invites the general

public and the Office of Management

and Budget (OMB) to comment on the

information collection(s) 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 Notice; OMB

notification of action is due 60 days

from date of publication of this NPRM

in the Federal Register. Comments

should address: (a) Whether the

proposed modifications to existing

information collections are 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.

2. The information collection

requirements of 47 CFR 22.901, which

is contained in OMB 3060–0508 (66 FR

109), is being proposed for elimination.

Further, the Commission proposes to

revise the information collection

associated with 47 CFR 22.937, which is

also contained in OMB 3060–0508. By

revising 47 CFR 22.937 to eliminate the

financial demonstration requirement for

all cellular licensees who are not

competing with cellular renewal

licensees, the Commission thus

eliminates the information collection

31590 Federal Register / Vol. 66, No. 113 / Tuesday, June 12, 2001 / Proposed Rules

requirement(s) associated with this rule

section.

OMB Control No.: 3060–0508.

Title: Rewrite and Update of Part 22.

Form No.: N/A.

Type of Review: Revision of currently

approved collection.

Respondents: Business or other forprofit.

Number of Respondents: 166,732.

Frequency of Response: On occasion,

quarterly, semi-annually, annually.

Total Annual Burden: 250,415 hours.

Total Annual Cost: 0.

Needs and Uses: Part 22 contains the

technical and legal requirements for

radio stations operating in the Public

Mobile Services. Generally the collected

information is used to determine legal,

technical and/or financial qualifications

of the respondents.

II. Introduction

3. This Notice of Proposed

Rulemaking initiates a proceeding as

part of the Commission’s year 2000

Biennial Review of regulations pursuant

to Section 11 of the Communications

Action of 1934, as amended, 47 U.S.C.

161 (Communications Act). Section 11

requires the Commission to review all of

its regulations applicable to providers of

telecommunications services, and to

determine whether any rule is no longer

in the public interest as a result of

meaningful economic competition

between providers of

telecommunications service and

whether such regulations should be

deleted or modified. As a result, the

NPRM sets forth and seeks comment on

specific proposed changes to several

CMRS service rules.

III. Background

4. In connection with the

Commission’s year 2000 Biennial

Review, in CC Docket No. 00–175, FCC

00–456 (rel. Jan. 17, 2001) (not

published in the Federal Register), the

Commission staff prepared a

comprehensive review of regulations

that affect telecommunications service

providers. The Commission

subsequently issued a report endorsing

recommendations made by staff as a

result of that review. In the staff report,

the staff notes that many of the part 22

rules regulating cellular telephone

service date back to the inception of the

service in the early 1980s, when the two

cellular carriers in each market were the

only providers of mobile telephony,

thus creating a ‘‘duopoly’’ market for

this service. The staff report

recommends initiating a rulemaking to

review the cellular rules and consider

which of these rules are obsolete as a

result of the technological advances and

growth of competition that have

occurred in mobile telephony since the

rules were adopted. The report also

recommends review of certain other Part

22 rules on the same basis. This NPRM

addresses many of the issues identified

in the staff Biennial Review report.

IV. Discussion

5. This NPRM sets forth and seeks

comment on specific proposed changes

to several service rules. The following

specific rules and issues are addressed

in the item: (1) Cellular service

requirements and limitations (§ 22.901);

(2) Advanced Mobile Phone Service

(AMPS) analog cellular compatibility

standard (§§ 22.901 and 22.933); (3)

manufacturing and design requirements

governing the security of electronic

serial numbers (ESNs) in cellular

telephones (§ 22.919); (4) cellular

channelization rules (§ 22.905); (5)

cellular analog modulation requirement

and out-of-band emissions limitations

(§§ 22.915 and 22.917), as well as outof-band emissions rules for broadband

Personal Communications Service

(PCS); (6) cellular wave polarization

requirement (§ 22.367(a)(4)); (7) rule

governing cellular System Identification

Numbers (SIDs) (§ 22.941); (8)

alternative methods for determining a

Cellular Geographic Service Area

(CGSA) (§ 22.911); (9) service

commencement and construction period

rules (§ 22.946); (10) incidental services

rules (§ 22.323); and (11) cellular antitrafficking rules (§§ 22.937, 22.943, and

22.945). Each of these issues will be

discussed briefly in turn.

6. Cellular Service Requirements and

Limitations (§ 22.901). Although this

rule has been amended several times

since its adoption, the NPRM notes that

it appears outdated in several respects.

First, the rule is drafted as though the

principal technology employed is

analog, which is no longer true. The

NPRM proposes revising the rule to

avoid characterizing any particular

technology as either primary or

alternative. Second, the NPRM seeks

comment on the various types of service

area information provided by noncellular CMRS carriers, as well as

whether the requirement for cellular

carriers to provide reliable service area

information is still necessary in light of

the current level of competition for

CMRS services. Also, the NPRM seeks

comments on modifying or eliminating

other provisions of the rule.

7. Advanced Mobile Phone Service

(AMPS) analog cellular compatibility

standard (§ 22.901 and 22.933).

Currently, cellular carriers are required

to provide analog service in accord with

the Advanced Mobile Phone Service

(AMPS) specifications referenced and

incorporated in the April 1981 version

of Office of Engineering and Technology

(OET) Bulletin No. 53. The NPRM seeks

comment on whether the Commission

should update or eliminate this

standard in light of technological and

market developments since the adoption

of the requirement. In particular, the

NPRM seeks comment on the possible

impact of eliminating this rule on

certain existing programs and services,

and notes that the Commission is

reluctant to eliminate the standard if

doing so will significantly impair the

access of users of analog-dependent

technology to wireless

telecommunications services.

8. Electronic Serial Number (ESN)

rule (§ 22.919). Section 22.919 sets forth

various design requirements for

manufacturers of cellular telephones,

which are not applicable to other CMRS

services. These requirements were

adopted to address the problem of

cellular cloning fraud, which was

prevalent in the early 1990s. Given the

developments since the Commission

promulgated the ESN requirements,

which include enactment of a statute to

address such fraud directly and changes

in the technologies available to prevent

fraud, the NPRM notes that many of the

original reasons for establishing the ESN

requirements may no longer be

compelling and proposes removing

§ 22.919 from the Commission’s rules.

9. Channelization Requirements

(§ 22.905). The NPRM tentatively

concludes that the channelization plan

in the rules is no longer necessary

because analog nationwide

compatibility has already been

established and the principal digital

technologies are exempt from this plan.

10. Modulation Requirements and InBand Emissions Limitations (§ 22.915).

Section 22.915 of the Commission’s

rules requires that cellular systems be

capable of providing service using the

modulation types described in the

existing analog compatibility

specification. Since the adoption of this

rule, the Commission has permitted

licensees more flexibility in choosing

the type of technology with which to

operate. The NPRM seeks comment on

how the Commission can define an outof-band emissions limit to provide

effective protection from interference

while allowing licensees flexibility to

establish a different limit where

appropriate.

11. Wave Polarization Requirement

(§ 22.367(a)(4)). The Commission’s

current rules require vertical wave

polarization. In the NPRM, the

Commission tentatively concludes that

it should relax this requirement.

Federal Register / Vol. 66, No. 113 / Tuesday, June 12, 2001 / Proposed Rules 31591

1See 5 U.S.C. 603. The RFA, see U.S.C. 601 et

seq., has been amended by the Contract With

America Advancement Act of 1996, Public Law

104–121, 110 Stat. 847 (1996) (CWAAA). Title II of

the CWAAA is the Small Business Enforcement

Fairness Act of 1996 (SBREFA).

2See 5 U.S.C. 603(a).

3See id.

4Biennial Regulatory Review, CC Docket No. 00–

175, Report FCC 00–456 (adopted December 29,

2000; released January 17, 2001) (Biennial Review

Report); Biennial Regulatory Review 2000 Updated

Staff Report, released January 17, 2001 (Biennial

Review Staff Report).

5The specific technical rules include:

§§ 22.367(a)(4), 22.901, 22.905, 22.911, 22.915,

22.917, 22.919, 22.933, 22.941, and 22.946 of the

Commission’s rules.

12. Assignment of System

Identification Numbers (SIDs)

(§ 22.941). Section 22.941 of the

Commission’s rules sets forth the

procedure by which the Commission

assigns system identification numbers

(SIDs) in the Cellular Radiotelephone

Service. The Commission proposes

generally eliminating SIDs as a term of

cellular licenses, and also seeks

comment on proposals for SID

coordination functions to be carried out

by an industry organization, rather than

the Commission.

13. Determination of Cellular

Geographic Service Area (CGSA)

(§ 22.911(a)). Section 22.911(a) of the

Commission’s rules sets forth a

standardized method for determining

the CGSA of a cellular system using a

specific mathematical formula. Section

22.911(b) sets forth alternative methods

that may be used if a licensee believes

that the standard method produces a

CGSA that substantially differs from the

actual coverage of its system. The NPRM

proposes modifications in this rule to

clarify the acceptable methods for

determining the CGSA.

14. Service Commencement and

Construction Periods (§ 22.946). This

rule sets forth the timing requirements

relating to the deployment of new

cellular systems. The NPRM seeks

comment on correcting an oversight

made during a recent change of the rule,

as well as updating the rule in light of

the level of competition for CMRS

services.

15. Incidental Services Rule

(§ 22.323). Section 22.323 authorizes

carriers operating in the Public Mobile

Radio Services to provide other

communications services incidental to

the primary public mobile services,

provided certain conditions are met.

The NPRM seeks comment on

eliminating or modifying this rule to

provide carriers more flexibility in

providing wireless services to meet

customer demands.

16. Cellular Anti-Trafficking Rules

(§§ 22.937, 22.943, and 22.945). These

rules were originally adopted to prevent

speculation and trafficking in cellular

licenses at a time when cellular licenses

were awarded through a lottery process.

Given that licenses are now principally

awarded through the auction process,

which in effect offers safeguards against

speculative purchases of authorizations,

the NPRM seeks comment on whether

the Commission should eliminate or

substantially modify these rules.

V. Filing Procedures

17. Pursuant to 47 CFR 1.415 and

1.419, interested parties may file

comments on or before July 2, 2001, and

reply comments on or before August 1,

2001. Comments may be filed using the

Commission’s Electronic Comment

Filing System (ECFS) or by filing paper

copies. See Electronic Filing of

Documents in Rulemaking Proceedings,

63 FR 24,121 (1998).

18. 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.

In completing the transmittal screen,

commenters should include their full

name, Postal Service mailing address,

and the applicable docket or rulemaking

number. Parties may also submit

electronic comments by Internet e-mail.

To 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.

19. Parties who choose to file by

paper must file an original and four

copies of each filing. All filings must be

sent to the Commission’s Secretary,

Magalie Roman Salas, Office of the

Secretary, Federal Communications

Commission, 445 12th Street, SW., TW–

A325, Washington, DC 20554.

20. Regardless of whether parties

choose to file electronically or by paper,

parties should also file one copy of any

documents filed in this docket with the

Commission’s copy contractor,

International Transcription Services,

Inc., 445 12th Street, SW., CY–B400,

Washington, DC 20554. Comments and

reply comments will be available for

public inspection during regular

business hours in the FCC Reference

Center, 445 12th Street, SW.,

Washington, DC 20554. Comments and

reply comments must include a short

and concise summary of the substantive

arguments raised in the pleading.

Comments and reply comments must

also comply with 47 CFR 1.49, and all

other applicable sections of the

Commission’s rules. The Commission

also directs 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.

All parties are encouraged to utilize a

table of contents, regardless of the

length of their submission.

VI. Initial Regulatory Flexibility

Analysis

21. As required by the Regulatory

Flexibility Act (RFA),1 the Commission

has prepared an Initial Regulatory

Flexibility Analysis (IRFA) of the

possible significant economic impact on

small entities of the policies and rules

proposed in this NPRM, WT Docket No.

01–108. Written public comments are

requested on this IRFA. Comments must

be identified as responses to the IRFA

and must be filed by the deadline for

comments on the Notice provided in

paragraph 76 of the NPRM. The

Commission will send a copy of the

Notice, including this IRFA, to the Chief

Counsel for Advocacy of the Small

Business Administration.2 In addition,

the Notice and IRFA (or summaries

thereof) will be published in the Federal

Register.3

A. Need for, and Objectives of, the

Proposed Rules

22. As part of our 2000 biennial

regulatory review pursuant to Section

11 of the Communications Act of 1934,

as amended (Communications Act), we

are required to review all of our

regulations that are applicable to

providers of telecommunications service

to determine whether any rule is no

longer in the public interest. More

specifically, in the Biennial Review

Report, the Commission indicated that it

would initiate a rulemaking proceeding

to identify and address potentially

outdated technical rules governing

cellular service, based on the staff’s

recommendations that were included in

the Biennial Review Staff Report.4 The

staff report notes that many of the Part

22 technical rules regulating cellular

telephone service date back to the

inception of the service in the early

1980s and, given the significant

technological changes and growth in

competition for cellular services since

that time, the rules may be obsolete. In

particular, the NPRM seeks comment on

elimination of the cellular analog

compatibility standard and the

Electronic Serial Number (ESN) rule, as

well as modifying several other

technical rules.5 In the same vein, some

of the cellular anti-trafficking rules may

be outdated because they were adopted

during a period when the Commission

31592 Federal Register / Vol. 66, No. 113 / Tuesday, June 12, 2001 / Proposed Rules

6The specific cellular anti-trafficking rules

include: §§ 22.937, 22.943, and 22.945 of the

Commission’s rules.

7See 47 CFR 22.323.

8See 5 U.S.C. 605.

9See para. 42, supra.

10Omnipoint Request for Broadband Declaratory

Ruling or Waiver Concerning PCS Emissions Limits

Rule Section 24.238, DA 00–1767, 15 FCC Rcd.

13,422 (2000).

11 Id. a ¶ 1.

12U.S.C. 603(b)(3).

13 Id. at 601(6).

14 Id. at 601(3) (incorporating by reference the

definition of ‘‘small business concern’’ in 15 U.S.C.

632). Pursuant to the RFA, 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(s) in the Federal

Register.’’ Id.

15Small Business Act, 15 U.S.C. 632 (1996).

16See 47 CFR 90.493(b).

17 13 CFR 121.201, SIC code 4812.

18 1992 Census, Series UC92–S–1, at Table 5, SIC

code 4812.

19See Telecommunications Industry Revenues:

1999, Industry Analysis Division, Common Carrier

Bureau (Sept. 2000).

resolved mutually exclusive

applications for initial cellular services

through lottery, rather than the current

system of resolving such mutually

exclusive applications through

competitive bidding.6 We also take this

opportunity to reevaluate certain other

Part 22 rules that apply both to cellular

and to other CMRS, specifically

§ 22.323, which imposes conditions on

the provision of ‘‘incidental’’ services by

Public Mobile Services providers.7

B. Certification Regarding Broadband

PCS

23. With regard to broadband Personal

Communications Service (PCS), we

certify, pursuant to the RFA, that the

proposed changes to § 24.238, emissions

limitations, would not have ‘‘a

significant economic impact on a

substantial number’’ of small broadband

PCS providers.8 The proposed changes

to this rule would reduce the

compliance burden on these entities by

allowing these entities greater flexibility

to establish out-of-band emissions limits

to be used at specified band edges.9

Specifically, the proposed § 24.238(c)

would allow parties to establish

alternative out-of-band emissions limits

pursuant to private contractual

arrangements—a practice that is not

permitted by the current rule. This

proposal would effectively codify and

expand upon a waiver that the Wireless

Telecommunications Bureau (Bureau)

granted for all broadband PCS licensees

in August 2000.10 In that waiver grant,

the Bureau waived § 24.238 ‘‘insofar as

it limits out-of-band emissions on: (1)

Adjacent contiguous frequency blocks

that are separately assigned to the same

PCS licensees, and (2) adjacent

contiguous frequency blocks that are

assigned to different PCS licensees who

have entered into an agreement(s)

concerning interference protection to

the adjacent spectrum.’’ 11 The proposed

rule change would allow somewhat

more flexibility to licensees because it

would not limit a licensee’s ability to

contract for alternative emissions

limitations to only those frequency

blocks that are both adjacent and

contiguous. Because our proposed

change would effectively codify a

waiver that permits greater flexibility for

broadband PCS licensees, the proposed

changes to § 24.238 would not have a

significant economic impact on

broadband PCS providers.

C. Legal Basis

24. The potential actions on which

comment is sought in this NPRM would

be authorized under Sections 1, 4(i), 11,

and 303(r) of the Communications Act

of 1934, as amended, 47 U.S.C. 151,

154(i), 161, and 303(r).

D. Description and Estimate of the

Small Entities Subject to the Rules

25. The RFA requires that an initial

regulatory flexibility analysis be

prepared for notice-and-comment

rulemaking proceedings, unless the

Agency certifies that ‘‘the rule will not,

if promulgated, have a significant

impact on a substantial number of small

entities.’’ 12 The RFA generally defines

the term ‘‘small entity’’ as having the

same meaning as the terms ‘‘small

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

‘‘small governmental jurisdiction.’’ 13 In

addition, the term ‘‘small business’’ has

the same meaning as the term ‘‘small

business concern’’ under the Small

Business Act.14 A small business

concern is one which: (1) Is

independently owned and operated; (2)

is not dominant in its field of operation;

and (3) satisfies any additional criteria

established by the SBA.15 This IRFA

describes and estimates the number of

small-entity licensees and

manufacturers that may be affected if

the proposals in this NPRM are adopted.

26. This NPRM could result in rule

changes that, if adopted, would affect

small businesses that currently are or

may become Cellular Radiotelephone

Service providers that are regulated

under subpart H of part 22 of the

Commission’s rules. In addition, the

proposed changes to § 22.323 of the

Commission’s rules would, if adopted,

affect service providers that are

regulated under any provisions of part

22 of the Commission’s rules. These

include, in addition to Cellular

Radiotelephone Service providers,

providers of Paging and Radiotelephone

(Common Carrier Paging), Air-Ground

Radiotelephone, Offshore

Radiotelephone, and Rural

Radiotelephone services. In addition,

pursuant to § 90.493(b) of the

Commission’s rules, paging licensees on

exclusive channels in the 929–930 MHz

bands are subject to the licensing,

construction, and operation rules set

forth in part 22.16 As this rulemaking

proceeding applies to multiple services,

we will analyze the number of small

entities affected on a service-by-service

basis. In addition to service providers,

some of the proposed rule changes may

also affect manufacturers of cellular

telecommunications equipment. We

will include a separate discussion

regarding the number of small cellular

equipment manufacturing entities that

are potentially affected by the proposed

rule changes.

27. Cellular Radiotelephone Service.

Neither the Commission nor the SBA

has developed a definition of small

entities applicable to cellular licensees.

Therefore, 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.17 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.18 Therefore, 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. In addition, according

to the most recent Telecommunications

Industry Revenue data, 808 carriers

reported that they were engaged in the

provision of either cellular service or

PCS, which are placed together in the

data.19 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

cellular service carriers that would

qualify as small business concerns

under the SBA’s definition.

Consequently, we estimate that there are

808 or fewer small cellular service

carriers that may be affected by these

proposals, if adopted.

Federal Register / Vol. 66, No. 113 / Tuesday, June 12, 2001 / Proposed Rules 31593

20 Implementation of Section 6002(b) of the

Omnibus Budget Reconciliation Act of 1993, Third

Report, 13 FCC Rcd 19746, 19792 (1998).

21Air-ground radiotelephone service is defined in

§ 22.99 of the Commission’s rules, 47 CFR 22.99.

22Rural Radiotelephone Service is defined in

§ 22.99 of the Commission’s rules, 47 CFR 22.99.

23BETRS is defined in §§ 22.757 and 22.729 of

the Commission’s rules, 47 CFR 22.757 and 22.729.

24 13 CFR 121.201, Standard Industrial

Classification (SIC) code 3663.

25U.S. Dept. of Commerce, 1992 Census of

Transportation, Communications and Utilities

(issued May 1995), SIC code 3663 (estimate created

by the Census Bureau under contract to the Office

of Advocacy, SBA).

26See 5 U.S.C. 603.

28. Paging. The Commission has

adopted, and the SBA has approved, a

two-tier definition of small businesses

in the context of auctioning licenses in

the paging services. Under this

definition, a small business is 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. The

Commission has estimated that as of

January 1998, there were more than 600

paging companies in the United

States.20 We do not have data specifying

the number of these carriers that are not

independently owned and operated or

meet the small business thresholds set

forth above, or the number of these

carriers that are regulated under part 22

of the Commission’s rules, and thus are

unable at this time to estimate with

precision the number of affected paging

carriers that would qualify as small

business concerns under our definition.

However, we estimate that the majority

of existing paging providers qualify as

small entities under our definition.

Consequently, we estimate that there are

up to approximately 600 currently

licensed small paging carriers that may

be affected by the rule changes proposed

in the NPRM. In addition, high bids

were placed at auction in March 2000

for 985 new geographic area paging

licenses, and an additional 15,645

geographic area paging licenses are

expected to be awarded following future

auctions. In the March 2000 auction,

high bids were placed on paging

licenses by 57 entities that qualify as

small businesses under the

Commission’s definition. Licenses have

been granted to 56 of these entities, and

the application of the other entity

remains pending. Thus, in addition to

existing licensees, should the

Commission adopt the rule changes

proposed in the NPRM either 57 or 58

license winners in the recent auction

would be affected small entities, and up

to 15,645 winners of paging licenses in

future auctions would be affected small

entities.

29. Air-Ground Radiotelephone

Service. The Commission has not

adopted a definition of small business

specific to the Air-Ground

radiotelephone service.21 Accordingly,

we use the SBA 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 the

Commission estimates that almost all of

them qualify as small entities under the

SBA definition.

30. Offshore Radiotelephone Service.

This service operates on several ultra

high frequency (UHF) TV broadcast

channels that are not used for TV

broadcasting in the coastal area of the

states bordering the Gulf of Mexico. At

present, there are approximately 55

licensees in this service. The

Commission has not adopted a

definition of small business specific to

the Offshore Radiotelephone Service.

Accordingly, we use the SBA definition

applicable to radiotelephone companies,

i.e., an entity employing no more than

1,500 persons. The Commission is

unable at this time to estimate the

number of licensees that would qualify

as small entities under the SBA

definition for radiotelephone

communications. The Commission

assumes, for purposes of this IRFA, that

all of the 55 licensees are small entities,

as that term is defined by the SBA.

31. Rural Radiotelephone Service. The

Commission has not adopted a

definition of small entity specific to the

Rural Radiotelephone Service.22 A

significant subset of the Rural

Radiotelephone Service is the Basic

Exchange Telephone Radio Systems

(BETRS).23 We therefore use the SBA

definition applicable to radiotelephone

companies; i.e., an entity employing no

more than 1,500 persons. There are

approximately 1000 licensees in the

Rural Radiotelephone Service, and the

Commission estimates that almost all of

them qualify as small entities under the

SBA definition.

32. Cellular Equipment

Manufacturers. Some of the proposed

actions in the NPRM will also affect

manufacturers of cellular equipment.

The Commission does not know how

many cellular equipment manufacturers

are in the current market. The 1994

County Business Patterns Report of the

Bureau of the Census estimates that

there are 920 companies that make

communications subscriber equipment.

This category includes not only cellular

equipment manufacturers, but television

and AM/FM radio manufacturers as

well. Thus, the number of cellular

equipment manufacturers is

considerably lower than 920. Under

SBA regulations, a ‘‘communications

equipment manufacturer,’’ which

includes not only U.S. cellular

equipment manufacturers but also firms

that manufacture radio and television

broadcasting and other communications

equipment, must have a total of 750 or

fewer employees in order to qualify as

a small business concern.24 Census

Bureau data from 1992 indicate that at

that time there were an estimated 858

such U.S. manufacturers and that 778

(91%) of these firms had 750 or fewer

employees and would therefore be

classified as small entities.25 Using our

current estimate of cellular equipment

manufacturers and the previous

percentage estimate of small entities, we

estimate that our current action may

affect approximately 837 small cellular

equipment manufacturers.

E. Description of Projected Reporting,

Recordkeeping and Other Compliance

Requirements

34. This NPRM neither proposes nor

anticipates any additional reporting,

recordkeeping or other compliance

measures.

F. Steps Taken to Minimize Significant

Economic Impact on Small Entities, and

Significant Alternatives Considered

35. 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.26

36. As stated earlier, several of the

Commission’s technical and antitrafficking cellular rules may be

outdated. Therefore, modifying or

eliminating these rules should decrease

the costs associated with regulatory

compliance for cellular service

providers, provide additional flexibility

in manufacturing cellular equipment,

and also enhance the market demand for

31594 Federal Register / Vol. 66, No. 113 / Tuesday, June 12, 2001 / Proposed Rules

some products. Also, amending or

deleting the incidental services rules

may allow licensees in the part 22

services greater flexibility in the types of

services they offer. In the NPRM, the

Commission has set forth various

options it is considering for each rule,

from modifying rules to eliminating

them altogether. As discussed in the

NPRM, the effect of any rule change on

the regulatory burden of both licensees

and equipment manufacturers will be a

significant criterion in determining

appropriate Commission action.

37. We note that the entire intent

underlying our actions here is to lessen

the levels of regulation, consistent with

our mandate for undertaking biennial

reviews. We have therefore described,

supra, various alternatives to lessen the

regulatory burden on carriers and

equipment manufacturers, including

small entities. We seek comment on any

additional appropriate alternatives.

G. Federal Rules that May Duplicate,

Overlap or Conflict with the Proposed

Rules

38. None.

VII. Ordering Clauses

39. Authority for the issuance of this

NPRM is contained in Sections 154,

222, 303, 309 and 332 of the

Communications Act of 1934, as

amended, 47 U.S.C. 154, 222, 303, 309

and 332.

40. The Commission’s Consumer

Information Bureau, Reference

Information Center, Shall Send a copy

of this NPRM, including the Initial

Regulatory Flexibility Analysis, to the

Chief Counsel for Advocacy of the Small

Business Administration.

List of Subjects

47 CFR Part 22

Communications common carriers,

Communications equipment, Radio,

Reporting and recordkeeping

requirements, Rural areas.

47 CFR Part 24

Communications common carriers,

Communications equipment, Radio,

Reporting and recordkeeping

requirements.

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

Proposed Rule Changes

For the reasons discussed in the

preamble, the Federal Communications

Commission proposes to amend title 47,

part 22 of the Code of Federal

Regulations, as follows:

PART 22—PUBLIC MOBILE SERVICES

1. The authority citation for part 22

continues to read as follows:

Authority: 47 U.S.C. 154, 222, 303, 309 and

332.

2. Section 22.323 is revised to read as

follows:

§ 22.323 Incidental communication

services.

Carriers authorized to operate stations

in the Public Mobile Services may use

these stations to provide other

telecommunications services incidental

to the primary public mobile service(s)

for which the authorizations were

issued.

3. Section 22.367 is amended by

removing and reserving paragraph (a)(4)

and by revising paragraph (d), to read as

follows:

§ 22.367 Wave polarization.

* * * * *

(a) * * *

(4) [Reserved]

* * * * *

(d) Any polarization. Base, mobile

and auxiliary test transmitters in the

Cellular Radiotelephone Service are not

limited as to wave polarization. Public

Mobile Service stations transmitting on

channels higher than 960 MHz are not

limited as to wave polarization.

§ 22.377 [Amended]

4. Section 22.377 is amended by

removing paragraph (c).

5. Section 22.901 is revised to read as

follows:

§ 22.901 Cellular service requirements and

limitations.

The licensee of each cellular system is

responsible for ensuring that its cellular

system operates in compliance with this

section. Each cellular system must

provide either mobile service, fixed

service, or a combination of mobile and

fixed service, subject to the

requirements, limitations and

exceptions in this section. Mobile

service provided may be of any type,

including two-way radiotelephone,

dispatch, one-way or two-way paging,

and personal communications services

(as defined in part 24 of this chapter).

Fixed service is considered to be

primary service, as is mobile service.

When both mobile and fixed service are

provided, they are considered to be coprimary services. In providing cellular

services, each cellular system may

incorporate any technology that meets

all applicable technical requirements in

this part.

6. Section 22.905 is revised to read as

follows:

§ 22.905 Frequency bands.

The following frequency bands are

allocated for assignment to service

providers in the Cellular

Radiotelephone Service.

(a) Channel Block A: 869–880 MHz

paired with 824–835 MHz, and 890–

891.5 MHz paired with 845–846.5 MHz.

(b) Channel Block B: 880–890 MHz

paired with 835–845 MHz, and 891.5–

894 MHz paired with 846.5–849 MHz.

7. Section 22.911 is amended by

revising paragraphs (b)(1) and (b)(3), to

read as follows:

§ 22.911 Cellular geographic service area.

* * * * *

(b) * * *

(1) The alternative CGSA

determination must define the CGSA in

terms of distances from the cell sites to

the 32 dBμV/m contour along the eight

cardinal radials, with points in other

azimuthal directions determined by the

method given in paragraph (a)(6) of this

section. The distances used for the

cardinal radials must be representative

of the coverage within the 45° sectors,

as depicted by the alternative CGSA

determination.

* * * * *

(3) The provision for alternative

CGSA determinations was made in

recognition that the formula in

paragraph (a)(1) of this section is a

general model that provides a

reasonable approximation of coverage in

most land areas, but may substantially

under-predict or over-predict coverage

in specific areas with unusual terrain

roughness or features, and may be

inapplicable for certain purposes, e.g.,

cells with a coverage radius of less than

8 kilometers (5 miles). In such cases,

alternative methods that utilize more

specific models are appropriate.

Accordingly, the FCC does not consider

use of the formula in paragraph (a)(1) of

this section with parameters outside of

the limits in paragraphs (a)(3), (a)(4) and

(a)(5) of this section or with data for

radials other than the cardinal radials to

be a valid alternative method for

determining the CGSA of a cellular

system.

* * * * *

§ 22.915 [Removed]

8. Section 22.915 is removed.

9. Section 22.917 is revised to read as

follows:

§ 22.917 Emission limitations for cellular

equipment.

The rules in this section govern the

spectral characteristics of emissions in

the Cellular Radiotelephone Service.

(a) Out of band emissions. The power

of any emission outside of the

Federal Register / Vol. 66, No. 113 / Tuesday, June 12, 2001 / Proposed Rules 31595

authorized operating frequency ranges

must be attenuated below the

transmitting power (P) by a factor of at

least 43 + 10 log(P) dB.

(b) Measurement procedure.

Compliance with the limitation in

paragraph (a) of this section is based on

the use of measurement instrumentation

employing a resolution bandwidth of 1

MHz or more. However, for

measurements within 1 MHz of the

center of the main emission bandwidth,

a resolution bandwidth of not less than

1% of the main emission bandwidth

may be employed. For the purpose of

this section, the main emission

bandwidth is the continuous width of

the signal outside of which all

emissions are attenuated by at least 26

dB below the transmitting power. Either

peak or average measurements may be

used, provided that both the emissions

and the reference transmitter power are

measured the same way. When

measuring emissions, the transmitter

must be set to operate as close to each

of the upper and lower channel block

edges as the design permits for normal

operation.

(c) Alternative out of band emission

limit. Licensees in this service may

establish an alternative out of band

emission limit to be used at specified

band edge(s) in specified geographical

areas, in lieu of that set forth in this

section, pursuant to a private

contractual arrangement of all affected

licensees and applicants. In this event,

each party to such contract shall

maintain a copy of the contract in their

station files and disclose it to

prospective assignees or transferees and,

upon request, to the FCC.

(d) Interference caused by out of band

emissions. If any emission from a

transmitter operating in this service

results in interference to users of

another radio service, the FCC may

require a greater attenuation of that

emission than specified in this section.

§ 22.919 [Removed]

10. Section 22.919 is removed.

11. Section 22.921 is revised to read

as follows:

§ 22.921 911 call processing procedures;

911-only calling mode.

Mobile telephones manufactured after

February 13, 2000 that are capable of

operating in the analog mode described

in the standard publication ANSI TIA/

EIA–553–A–99 ‘‘Mobile Station—Base

Station Compatibility Standard’’

(published November 1, 1999—available

for purchase from Global Engineering

Documents, 15 Inverness East,

Englewood, CO 80112), must

incorporate a special procedure for

processing 911 calls. Such procedure

must recognize when a 911 call is made

and, at such time, must override any

programming in the mobile unit that

determines the handling of a non-911

call and permit the call to be

transmitted through the analog systems

of other carriers. This special procedure

must incorporate one or more of the 911

call system selection processes endorsed

or approved by the FCC.

1. Section 22.937 is revised to read as

follows:

§ 22.937 Demonstration of financial

qualifications in cellular renewal

proceedings.

Each applicant for a new cellular

system whose application is competing

with a cellular renewal application must

demonstrate that it has, at the time the

application is filed, either a firm

financial commitment, an irrevocable

letter of credit or a performance bond in

the amount of its realistic and prudent

estimated costs of construction and any

other expenses to be incurred during the

first year of operating its proposed

system (the irrevocable letter of credit or

performance bond must be from the

type of financial institution described in

paragraph (b) of this section), or

available resources, as defined in

paragraph (c) of this section, necessary

to construct and operate its proposed

cellular system for one year.

(a) The firm financial commitment

may be contingent on the applicant

obtaining an authorization. The

applicant must also list all of its realistic

and prudent estimated costs of

construction and any other expenses to

be incurred during the first year of

operating its proposed system.

(b) The firm financial commitment

required above shall be obtained from a

state or federally chartered bank or

savings and loan association, another

recognized financial institution, or the

financial arm of a capital equipment

supplier; shall specify the terms of the

loan or other form of credit

arrangement, including the amount to

be borrowed, the interest to be paid, the

amount of the commitment fee and the

fact that it has been paid, the terms of

repayment and any collateral required;

and shall contain a statement:

(1) That the lender has examined the

financial conditions of the applicant,

including audited financial statements

where applicable, and has determined

that the applicant is creditworthy;

(2) That the lender has examined the

financial viability of the proposal for

which the applicant intends to use the

commitment;

(3) That the lender is committed to

providing a sum certain to the particular

applicant;

(4) That the lender’s willingness to

enter into the commitment is based

solely on its relationship with the

applicant; and,

(5) That the commitment is not in any

way guaranteed by an entity other than

the applicant.

(c) An applicant intending to rely on

personal or internal resources must

submit:

(1) Audited financial statements

certified within one year of the date of

the cellular application, indicating the

availability of sufficient net current

assets to construct and operate the

proposed cellular system for one year;

(2) A balance sheet current within 60

days of the date of filing its application

that clearly shows the continued

availability of sufficient net current

assets to construct and operate the

proposed cellular system for one year;

and,

(3) A certification by the applicant or

an officer of the applicant organization

attesting to the validity of the unaudited

balance sheet.

(d) Applicants intending to rely upon

financing obtained through a parent

corporation must submit the

information required by paragraph (c) of

this section, as the information pertains

to the parent corporation.

(e) As an alternative to relying upon

a firm financial commitment, an

irrevocable letter of credit, or a

performance bond from a financial

institution as described in paragraph (b)

of this section, an applicant may state

that it has placed in an escrow account

sufficient cash to meet its construction

and first-year operating expenses. Such

a statement must specify the amount of

cash, the escrow account number and

the financial institution where the

escrow account is located.

(f) Any competing application filed

against the renewal application of an

incumbent cellular system licensee that

does not demonstrate, at the time it is

initially filed, that the competing

applicant has sufficient funds to

construct and operate for one year its

proposed cellular system will be

dismissed.

13. § 22.941 is revised to read as

follows:

§ 22.941 System identification numbers.

System identification numbers (SIDs)

are transmitted by cellular systems to

cellular telephones in their areas.

Reception of a SID so transmitted

enables cellular telephones to establish

whether they would be in a ‘‘home’’ or

‘‘roamer’’ status when receiving service

31596 Federal Register / Vol. 66, No. 113 / Tuesday, June 12, 2001 / Proposed Rules

from the cellular system. The SID of a

cellular system is also programmed into

the cellular telephones that are

subscribed to that system. A cellular

telephone transmits the programmed

SID (among other numbers) when

seeking service from a cellular system,

enabling that system to determine

whether the telephone is one of its

subscribers or a roamer; and if a roamer,

what the home system of that cellular

telephone is. SIDs are also used for

various billing purposes.

(a) Each cellular system must have at

least one SID that is associated uniquely

with it. Cellular system licensees must

coordinate the usage of SIDs to ensure

that this requirement is met.

(b) Cellular systems may transmit

only their SID(s) or the SID(s) of other

cellular systems. A cellular system may

transmit the SID(s) of another cellular

system only if the licensee of that

system concurs with such use of its SID.

14. § 22.943 is amended by revising it

to read as follows:

§ 22.943 Limitations on transfer of control

and assignment for authorizations issued

as a result of a comparative renewal

proceeding.

Except as otherwise provided in this

section, the FCC does not accept

applications for consent to transfer of

control or for assignment of the

authorization of a cellular system that

has been acquired by the current

licensee for the first time as a result of

a comparative renewal proceeding until

the system has provided service to

subscribers for at least three years.

(a) The FCC may accept and grant

applications for consent to transfer of

control or for assignment of the

authorization of a cellular system that is

to be transferred as a part of a bona fide

sale of an on-going business to which

the cellular operation is incidental.

(b) The FCC may accept and grant

applications for consent to transfer of

control or for assignment of the

authorization of a cellular system that is

to be transferred as a result of the death

of the licensee.

(c) The FCC may accept and grant

applications for consent to transfer of

control or for assignment of

authorization if the transfer or

assignment is pro forma and does not

involve a change in ownership.

§ 22.945 [Removed]

15. Section 22.945 is removed.

16. Section 22.946 is amended by

revising it to read as follows:

§ 22.946 Service commencement and

construction periods for cellular systems.

This section specifies the service

commencement and construction

requirements for cellular systems.

Related rule provisions and notification

requirements are contained in § 1.946 of

this chapter.

(a) Commencement of service. Each

new cellular system licensed in markets

91–306 must be partially constructed

and begin providing service to

subscribers within 18 months. All other

cellular systems must be at least

partially constructed and begin

providing service to subscribers within

12 months, beginning on the date of

grant of the initial authorization. The

grant of any subsequent authorizations

(such as for major modifications) do not

extend this period. To satisfy this

requirement, a cellular system must be

interconnected with the public switched

telephone network (PSTN) and must be

providing service to mobile stations

operated by its subscribers and roamers.

A cellular system is considered to be

providing service only if mobile stations

can originate telephone calls to and

receive telephone calls from wireline

telephones through the PSTN.

Note to paragraph (a) of § 22.946: The first

cellular system authorized on each channel

block in markets 1 through 90, inclusive, was

allowed 36 months, rather than 12 months,

to commence providing service. The first

cellular system authorized on each channel

block in markets other than markets 1

through 90, inclusive, was allowed 18

months, rather than 12 months, to commence

providing service. These longer startup

periods that were afforded to first-authorized

cellular systems have all elapsed.

(b) Construction period for specific

facilities. The construction period

applicable to specific new or modified

cellular facilities for which a separate

authorization is granted is one year,

beginning on the date the authorization

is granted.

PART 24—PERSONAL

COMMUNICATIONS SERVICES

17. The authority citation for part 24

continues to read as follows:

Authority: 47 U.S.C. 154, 301, 302, 303,

309 and 332.

18. Section 24.238 is revised to read

as follows:

§ 24.238 Emission limitations for

Broadband PCS equipment.

The rules in this section govern the

spectral characteristics of emissions in

the Broadband Personal

Communications Service.

(a) Out of band emissions. The power

of any emission outside of the

authorized operating frequency ranges

must be attenuated below the

transmitting power (P) by a factor of at

least 43 + 10 log(P) dB.

(b) Measurement procedure.

Compliance with the limitation in

paragraph (a) of this section is based on

the use of measurement instrumentation

employing a resolution bandwidth of 1

MHz or more. However, for

measurements within 1 MHz of the

center of the main emission bandwidth,

a resolution bandwidth of not less than

1% of the main emission bandwidth

may be employed. For the purpose of

this section, the main emission

bandwidth is the continuous width of

the signal outside of which all

emissions are attenuated by at least 26

dB below the transmitting power. Either

peak or average measurements can be

used, provided that both the emissions

and the reference transmitter power are

measured the same way. When

measuring emissions, the transmitter

must be set to operate as close to each

of the upper and lower frequency block

edges as the design permits for normal

operation.

(c) Alternative out of band emission

limit. Licensees in this service may

establish an alternative out of band

emission limit to be used at specified

band edge(s) in specified geographical

areas, in lieu of that set forth in this

section, pursuant to a private

contractual arrangement of all affected

licensees and applicants. In this event,

each party to such contract shall

maintain a copy of the contract in their

station files and disclose it to

prospective assignees or transferees and,

upon request, to the FCC.

(d) Interference caused by out of band

emissions. If any emission from a

transmitter operating in this service

results in interference to users of

another radio service, the FCC may

require a greater attenuation of that

emission than specified in this section.

[FR Doc. 01–14741 Filed 6–11–01; 8:45 am]

BILLING CODE 6712–01–U

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 73

[DA 01–1296; MM Docket No. 01–113; RM–

9655]

Radio Broadcasting Services; Big

Piney and LaBarge, Wyoming

AGENCY: Federal Communications

Commission.

ACTION: Proposed rule.

SUMMARY: The Commission requests

comments on a petition for rule making

filed by Mount Rushmore Broadcasting,

Inc. (‘‘petitioner’’) requesting allotments

at Big Piney and LaBarge, Wyoming.