Federal Register / Vol. 70, No. 199 / Monday, October 17, 2005 / Proposed Rules 60259 

this area that obviate or mitigate the 

need for a separate grant condition? 

(10) Does the current language in the 

AmeriCorps grant provisions 

appropriately define the scope of the 

requirement and documentation of 

compliance? 

(11) What safeguards are necessary to 

protect the privacy of program 

participants or staff? 

(12) What are the best practices to 

monitor and enforce compliance with 

requirements relating to the screening of 

participants? 

(13) Where grantees are involved in a 

variety of programmatic activities, as in 

the case of RSVP, how should the 

Corporation identify those programs 

where volunteers and staff have access 

to children or other vulnerable 

individuals on a recurring basis? 

(14) To what extent do state and local 

laws constrain the Corporation from 

requiring grantees to conduct criminal 

background checks on national service 

participants or employees, who, on a 

recurring basis, have access to children 

or other vulnerable populations? 

(15) How often should a criminal 

background check be conducted for a 

national service participant who serves 

for two or more years? 

(16) Are there categories of grantees 

(e.g. local school districts) for whom a 

separate Corporation requirement for 

criminal background checks might not 

be necessary because the grantee is 

already independently required to have 

appropriate applicant screening 

safeguards in place? 

For more information on the 

Corporation, please visit our Web site at: 

http://www.nationalservice.gov. 

Conference Calls and Public Input 

The Corporation is planning two 

conference calls in October, 2005. The 

first will be conducted on October 21, 

2005, at 3 p.m., e.s.t. and the second on 

October 28, 2005, also at 3 p.m. e.s.t. 

The USA Toll Free Number is 1–888–

790–1769. The passcode is 7282715. 

Each conference call will last 

approximately 1 hour. Please check our 

Web site at http:// 

www.nationalservice.gov/about/ 

newsroom/ 

releases_detail.asp?tbl_pr_id=196 for 

additional or updated information 

regarding these conference calls, or 

contact Tom Bryant at tbryant@cns.gov. 

Dated: October 11, 2005. 

Frank R. Trinity, 

General Counsel. 

[FR Doc. 05–20652 Filed 10–14–05; 8:45 am] 

BILLING CODE 6050–$$–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Parts 63 and 64 

[WC Docket No. 05–271; FCC 05–150] 

Consumer Protection in the Broadband 

Era 

AGENCY: Federal Communications 

Commission. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Federal Communications 

Commission (Commission) initiates this 

rulemaking to explore whether 

regulations we would adopt pursuant to 

the Commission’s ancillary jurisdiction 

under Title I of the Communications Act 

(Act) should apply to broadband 

Internet access service, regardless of the 

underlying technology providers use to 

offer the service. The rulemaking seeks 

comment on whether the imposition of 

regulations in the areas of consumer 

privacy, unauthorized changes to 

service, truth-in-billing, network outage 

reporting, discontinuance of service, 

rate averaging requirements, and the 

corresponding ability of consumers to 

take advantage of Commission avenues 

for resolution of these consumer 

protection issues, is desirable and 

necessary as a matter of public policy, 

or whether we should rely on market 

forces to address some or all of the areas 

listed. The rulemaking also explores 

whether there are other areas of 

consumer protection not listed above for 

which the Commission should impose 

regulations. Overall, this rulemaking 

will determine whether any noneconomic regulatory requirements are 

necessary to ensure that consumer 

protection needs are met by all 

providers of broadband Internet access 

service. 

DATES: Comments are due on or before 

January 17, 2006, and reply comments 

are due on or before March 1, 2006. 

ADDRESSES: You may submit comments, 

identified by WC Docket No. 05–271, by 

any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Agency Web Site: http:// 

www.fcc.gov. Follow the instructions for 

submitting comments on http:// 

www.fcc.gov/cgb/ecfs/. 

• E-mail: ecfs@fcc.gov, and include 

the following words in the body of the 

message, ‘‘get form.’’ A sample form and 

directions will be sent in response. 

• Mail: Federal Communications 

Commission, 445 12th Street, SW., 

Washington. DC 20554. 

• Hand Delivery/Courier: 236 

Massachusetts Avenue, NE., Suite 110, 

Washington, DC 20002. 

Instructions: All submissions received 

must include the agency name and 

docket number for this rulemaking. All 

comments received will be posted 

without change to http://www.fcc.gov/ 

cgb/ecfs/, including any personal 

information provided. For detailed 

instructions on submitting comments 

and additional information on the 

rulemaking process, see the ‘‘Public 

Participation’’ heading of the 

SUPPLEMENTARY INFORMATION section of 

this document. 

Docket: For access to the docket to 

read background documents or 

comments received, go to http:// 

www.fcc.gov/cgb/ecfs/. 

FOR FURTHER INFORMATION CONTACT: 

William Kehoe, Senior AttorneyAdvisor, Competition Policy Division, 

Wireline Competition Bureau, at (202) 

418–1580. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s Notice of 

Proposed Rulemaking in WC Docket No. 

05–271, FCC 05–150, adopted August 5, 

2005, and released September 23, 2005. 

The complete text of this NPRM is 

available for inspection and copying 

during normal business hours in the 

FCC Reference Information Center, 

Portals II, 445 12th Street, SW., Room 

CY–A257, Washington, DC 20554. This 

document may also be purchased from 

the Commission’s duplicating 

contractor, Best Copy and Printing, Inc., 

445 12th Street, SW., Room CY–B402, 

Washington, DC 20554, telephone (800) 

378–3160 or (202) 863–2893, facsimile 

(202) 863–2898, or via e-mail at 

www.bcpiweb.com. It is also available 

on the Commission’s Web site at 

http://www.fcc.gov. 

Public Participation 

Comments may be filed using: (1) The 

Commission’s Electronic Comment 

Filing System (ECFS), (2) the Federal 

Government’s eRulemaking Portal, or (3) 

by filing paper copies. See Electronic 

Filing of Documents in Rulemaking 

Proceedings, 63 FR 24121 (May 1, 1998). 

• Electronic Filers: Comments may be 

filed electronically using the Internet by 

accessing the ECFS: http://www.fcc.gov/ 

cgb/ecfs/ or the Federal eRulemaking 

Portal: http://www.regulations.gov. 

Filers should follow the instructions 

provided on the Web site for submitting 

comments. 

• For ECFS filers, filers must transmit 

one electronic copy of the comments for 

the docket number referenced in the 

caption. In completing the transmittal 

screen, filers should include their full 

60260 Federal Register / Vol. 70, No. 199 / Monday, October 17, 2005 / Proposed Rules 

name, U.S. 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, filers should send an email to ecfs@fcc.gov, and include the 

following words in the body of the 

message, ‘‘get form.’’ A sample form and 

directions will be sent in response. 

• Paper Filers: Parties who choose to 

file by paper must file an original and 

four copies of each filing. If more than 

one docket or rulemaking number 

appears in the caption of this 

proceeding, filers must submit two 

additional copies for each additional 

docket or rulemaking number. 

Filings can be sent by hand or 

messenger delivery, by commercial 

overnight courier, or by first-class or 

overnight U.S. Postal Service mail 

(although we continue to experience 

delays in receiving U.S. Postal Service 

mail). All filings must be addressed to 

the Commission’s Secretary, Office of 

the Secretary, Federal Communications 

Commission. 

• The Commission’s contractor will 

receive hand-delivered or messengerdelivered paper filings for the 

Commission’s Secretary at 236 

Massachusetts Avenue, NE., Suite 110, 

Washington, DC 20002. The filing hours 

at this location are 8 a.m. to 7 p.m. All 

hand deliveries must be held together 

with rubber bands or fasteners. Any 

envelopes must be disposed of before 

entering the building. 

• Commercial overnight mail (other 

than U.S. Postal Service Express Mail 

and Priority Mail) must be sent to 9300 

East Hampton Drive, Capitol Heights, 

MD 20743. 

• U.S. Postal Service first-class, 

Express, and Priority mail should be 

addressed to 445 12th Street, SW., 

Washington, DC 20554. 

All filings must be addressed to the 

Commission’s Secretary, Marlene H. 

Dortch, Office of the Secretary, Federal 

Communications Commission, 445 12th 

Street, SW., Washington, DC 20554. 

Parties should also send a copy of their 

filings to Janice Myles, Competition 

Policy Division, Wireline Competition 

Bureau, Federal Communications 

Commission, Room 5–C140, 445 12th 

Street, SW., Washington, DC 20554, or 

by e-mail to janice.myles@fcc.gov. 

Parties shall also serve one copy with 

the Commission’s copy contractor, Best 

Copy and Printing, Inc. (BCPI), Portals 

II, 445 12th Street, SW., Room CY–B402, 

Washington, DC 20554, (202) 488–5300, 

or via e-mail to fcc@bcpiweb.com. 

Synopsis of the Further Notice of 

Proposed Rulemaking 

1. In this Notice of Proposed 

Rulemaking (NPRM), we seek comment 

on the need for any non-economic 

regulatory requirements necessary to 

ensure consumer protection needs are 

met by all providers of broadband 

Internet access service, regardless of 

underlying technology. This includes, 

but is not limited to, facilities-based 

providers of wireline broadband 

Internet access service. We conclude, in 

the Report and Order accompanying the 

NPRM, that wireline broadband Internet 

access service is an information service 

under the Act. 

2. Consumers’ privacy needs are no 

less important when consumers 

communicate over and use broadband 

Internet access than when they rely on 

telecommunications services. For 

example, a consumer may have 

questions about whether a broadband 

Internet access service provider will 

treat his or her account and usage 

information as confidential, or whether 

the provider reserves the right to use 

account information for marketing and 

other purposes. Section 222 of the Act 

establishes the regulatory framework 

governing telecommunications carriers’

use and disclosure of CPNI and other 

customer information obtained by those 

carriers in their ‘‘provision of a 

telecommunications service.’’ That 

section requires, in general, that 

telecommunications carriers use or 

disclose CPNI only in the provision of 

the telecommunications service from 

which the CPNI is derived, or in the 

provision of services necessary to, or 

used in, the provision of such 

telecommunications services. 

3.We seek comment on whether we 

should extend privacy requirements 

similar to the Act’s CPNI requirements 

to providers of broadband Internet 

access services. For example, should we 

adopt rules under our Title I authority 

that forbid broadband Internet access 

providers from disclosing, without their 

customers’ approval, information about 

their customers that they learn through 

the provision of their broadband 

Internet access service? We seek 

comment on what sort of customer 

proprietary information broadband 

Internet access providers possess, e.g., 

information about consumers’ service 

plans, installed equipment, or patterns 

of Internet access use. We note that long 

before Congress enacted section 222 of 

the Act, the Commission had recognized 

the need for privacy requirements 

associated with the provision of 

enhanced services and had adopted 

CPNI-related requirements in 

conjunction with other Computer 

Inquiry obligations. 

4. Section 258 of the Act prohibits 

telecommunications carriers from 

submitting or executing an 

unauthorized change in a subscriber’s 

selection of a provider of telephone 

exchange service or telephone toll 

service, a practice commonly known as 

‘‘slamming.’’ In a series of orders, the 

Commission adopted various rules to 

implement section 258, and concluded 

that state authorities should have 

primary responsibility for administering 

the rules. By providing for state 

administration of slamming rules, the 

Commission recognized that state 

authorities are particularly wellequipped to handle such complaints 

because states are close to consumers 

and are familiar with trends in their 

regions. The Commission also 

recognized, however, that all states may 

not have the resources available to 

handle slamming complaints. 

Accordingly, the Commission’s rules 

allow consumers in states that do not 

‘‘opt-in’’ to administer the slamming 

rules to file slamming complaints with 

the Commission. 

5. We seek comment on whether we 

should exercise our Title I authority to 

impose similar requirements on 

providers of broadband Internet access 

service. Commenters should explain in 

what circumstances subscribers to 

broadband Internet access could get 

‘‘slammed.’’ Is the provisioning process 

for broadband Internet access service 

such that an unauthorized change in 

provider is more likely in situations 

where the provider relies on third-party 

broadband transmission facilities? 

6. The Commission has adopted truthin-billing rules to ensure that consumers 

receive accurate, meaningful 

information on their 

telecommunications bills that will allow 

consumers to better understand their 

bills, compare service offerings, and 

thereby promote a more efficient, 

competitive marketplace. In general, the 

Commission’s rules require that a 

telecommunication carrier’s bill must: 

(1) Be accompanied by a brief, clear, 

non-misleading, plain language 

description of the service or services 

rendered; (2) identify the service 

provider associated with each charge; 

(3) clearly and conspicuously identify 

any change in service provider; (4) 

identify those charges for which failure 

to pay will not result in disconnection 

of basic local service; and (5) provide a 

toll-free number for consumers to 

inquire or dispute any charges. The 

Commission’s rules on truth-in-billing 

are designed to reduce slamming, 

cramming (which is the practice of 

Federal Register / Vol. 70, No. 199 / Monday, October 17, 2005 / Proposed Rules 60261 

placing unauthorized, misleading, or 

deceptive charges on a 

telecommunications bill and is most 

likely to occur when a carrier does not 

clearly or accurately describe all of the 

relevant charges on the consumer’s bill), 

and other telecommunications fraud by 

setting standards for accuracy on bills 

for telecommunications service. 

7. We seek comment on whether we 

should exercise our Title I authority to 

impose requirements on broadband 

Internet access service providers that are 

similar to our truth-in-billing 

requirements or are otherwise geared 

toward reducing slamming, cramming, 

or other types of telecommunicationsrelated fraud. For example, during 2005, 

the Commission’s Consumer and 

Governmental Affairs Bureau has 

received complaints about the billing 

practices of broadband Internet access 

services providers, including 

complaints related to double billing, 

billing for unexplained charges, and 

billing for cancelled services. Overall, 

parties should explain what problems 

customers of broadband Internet access 

service are likely to have with their bills 

and whether we should address these 

problems through truth-in-billing-type 

requirements. 

8. Section 63.100(a) through (e) of the 

Commission’s rules, 47 CFR 63.100(a)–

(e), requires certain communications 

providers to notify the Commission of 

outages of thirty or more minutes that 

affect a substantial number of customers 

or involve major airports, major military 

installations, key government facilities, 

nuclear power plants, or 911 facilities. 

We seek comment on whether we 

should exercise our Title I authority to 

impose any similar requirements on 

broadband Internet access service 

providers. Do the purposes of our 

network outage reporting requirements 

apply to outages of broadband Internet 

access service? Should we adopt 

requirements that differ depending on 

the nature of the facility or the type of 

customer served? 

9. Section 214 of the Act limits a 

telecommunications carrier’s ability to 

discontinue unilaterally its service to 

customers. Section 63.71 of the 

Commission’s implementing rules, 47 

CFR 63.71 generally requires that 

domestic carriers wishing to 

‘‘discontinue, reduce, or impair’’

services must first request authority to 

do so from the Commission and must 

notify affected customers and others of 

their plans. 

10. We seek comment on whether we 

should exercise our Title I authority to 

impose discontinuance-type 

requirements on providers of broadband 

Internet access service. As customers 

grow more dependent on broadband 

Internet access services, does the need 

for notice to customers grow stronger? 

Or do the multiplicity and availability 

of broadband Internet access providers 

mitigate the need for such notice? 

11. Finally, we seek to ensure that our 

actions today do not jeopardize the 

policies of section 254(g). That section 

required the Commission to adopt rules 

‘‘to require that the rates charged by 

providers of interexchange 

telecommunications services to 

subscribers in rural and high cost areas 

* * * be no higher than the rates 

charged by each such provider to its 

subscribers in urban areas.’’ The 

provision further required that the rules 

‘‘require that a provider of interstate 

interexchange telecommunications 

services * * * provide such services to 

its subscribers in each State at rates no 

higher than the rates charged to its 

subscribers in any other State.’’ The 

Commission has forborne from the 

requirements of section 254(g) with 

regard to private line services, of which 

DSL is one. Because the policies 

underlying section 254(g) remain 

important, however, we ask whether we 

should exercise our Title I authority to 

impose any similar requirements on 

providers of broadband Internet access 

services, particularly as consumers 

substitute broadband services and 

applications for narrowband services 

that were covered by section 254(g). 

12. We recognize that the states play 

an important role in ensuring that 

public safety and consumer protection 

goals are met. The Commission has 

recently announced the creation of a 

federal-state task force on VoIP E911 

enforcement, and we believe that this 

NPRM may give rise to additional areas 

in which cooperation between this 

Commission and the states can achieve 

the best results. We note in this regard 

that NARUC has recently advocated for 

a ‘‘functional’’ approach to questions of 

federal and state jurisdiction, 

particularly with respect to consumer 

protection issues. For example, with 

respect to CPNI, NARUC recommends 

that the Commission be primarily 

responsible for establishing rules, while 

state or local authorities assume 

responsibility for enforcing those rules. 

To the extent that the Commission finds 

it necessary to impose consumer 

protection and related regulations on 

broadband Internet access service 

providers, we seek comment on how 

best to harmonize federal regulations 

with the states’ efforts and expertise in 

these areas. Do commenters support 

NARUC’s functional approach? In what 

other ways can the federal and state 

governments cooperate in order to 

ensure the best results for consumers? 

13. We note that consumers have 

various methods of pursuing complaints 

with the Commission against entities 

subject to our jurisdiction. In particular, 

the Commission’s informal complaint 

process permits consumers to submit 

complaints to the Commission by any 

reasonable means, including by 

telephone, facsimile, postal mail, e-mail 

and an Internet complaint form. 

Consumer Center representatives, 

known as Consumer Advocacy and 

Mediation Specialists or CAMSs, are 

available to assist consumers in filing 

complaints if needed. CAMSs staff 

review complaints for subject matter 

content and determine appropriate 

handling of the complaints. 

Initial Paperwork Reduction Act of 

1995 Analysis 

14. This document does not contain 

proposed information collection(s) 

subject to the Paperwork Reduction Act 

of 1995 (PRA), Public Law 104–13. In 

addition, therefore, it does not contain 

any new or modified ‘‘information 

collection burden for small business 

concerns with fewer than 25 

employees,’’ pursuant to the Small 

Business Paperwork Relief Act of 2002, 

Public Law 107–198, see 44 U.S.C. 

3506(c)(4). 

Initial Regulatory Flexibility Analysis 

15. As required by the Regulatory 

Flexibility Act of 1980, as amended 

(RFA), the Commission has prepared the 

present Initial Regulatory Flexibility 

Analysis (IRFA) of the possible 

significant economic impact on small 

entities that might result from this 

NPRM. Written public comments are 

requested on this IRFA. Comments must 

be identified as responses to the IRFA 

and must be filed by the deadlines for 

comments on the NPRM provided 

above. 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. 

Need for, and Objectives of, the 

Proposed Rules 

16. The broadband marketplace before 

us today is an emerging and rapidly 

changing one. Nevertheless, consumer 

protection remains a priority for the 

Commission. We initiate this 

rulemaking to ensure that consumer 

protection objectives in the Act are met 

as the industry shifts from narrowband 

to broadband services. Through this 

NPRM, the Commission’s objective is to 

60262 Federal Register / Vol. 70, No. 199 / Monday, October 17, 2005 / Proposed Rules 

develop a framework for consumer 

protection in the broadband age—a 

framework that ensures that consumer 

protection needs are met by all 

providers of broadband Internet access 

service, regardless of the underlying 

technology. The NPRM seeks comment 

on whether the Commission should 

impose, for example, privacy 

requirements similar to the Act’s CPNI 

requirements, slamming, truth-inbilling, network outage reporting, § 214 

discontinuance, or § 254(g) rate 

averaging requirements on providers of 

broadband Internet access service. We 

also seek comment on how best to 

harmonize federal regulations with the 

states’ efforts and expertise in consumer 

protection issues. 

Legal Basis 

17. The legal basis for any action that 

may be taken pursuant to the NPRM is 

contained in sections 1–4, 201–205, 251, 

252, 254, 256, 303(r) of the 

Communications Act of 1934, as 

amended, 47 U.S.C. 151–154, 201–205, 

251, 252, 254, 256, 303(r), and section 

706 of the Telecommunications Act of 

1996, 47 U.S.C. 157 nt. 

Description and Estimate of the Number 

of Small Entities to Which the Proposed 

Rules May Apply 

18. The RFA directs agencies to 

provide a description of and, where 

feasible, an estimate of the number of 

small entities that may be affected by 

the proposed rules. The RFA generally 

defines the term ‘‘small entity’’ as 

having the same meaning as the terms 

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

and ‘‘small governmental jurisdiction.’’

In addition, the term ‘‘small business’’

has the same meaning as the term 

‘‘small business concern’’ under the 

Small Business Act. A small business 

concern is one which: (1) Is 

independently owned and operated; (2) 

is not dominant in its field of operation; 

and (3) satisfies any additional criteria 

established by the Small Business 

Administration (SBA). 

19. Small Businesses. Nationwide, 

there are a total of approximately 22.4 

million small businesses, according to 

SBA data. 

20. Small Organizations. Nationwide, 

there are approximately 1.6 million 

small organizations. 

21. Small Governmental Jurisdictions. 

The term ‘‘small governmental 

jurisdiction’’ is defined as ‘‘governments 

of cities, towns, townships, villages, 

school districts, or special districts, with 

a population of less than fifty 

thousand.’’ As of 1997, there were 

approximately 87,453 governmental 

jurisdictions in the United States. This 

number includes 39,044 county 

governments, municipalities, and 

townships, of which 37,546 

(approximately 96.2%) have 

populations of fewer than 50,000, and of 

which 1,498 have populations of 50,000 

or more. Thus, we estimate the number 

of small governmental jurisdictions 

overall to be 84,098 or fewer. 

22. We note that the list of potentially 

affected entities below is perhaps more 

expansive than is necessary. We have, 

for instance, included services that are 

apparently currently not a part of the 

Internet industry, as well as 

manufacturers. 

Telecommunications Service Entities 

23. Wireline Carriers and Service 

Providers. We have included small 

incumbent local exchange carriers in 

this present RFA analysis. As noted 

above, 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 local 

exchange carriers are not dominant in 

their field of operation because any such 

dominance is not ‘‘national’’ in scope. 

We have therefore included small 

incumbent local exchange carriers in 

this RFA analysis, although we 

emphasize that this RFA action has no 

effect on Commission analyses and 

determinations in other, non-RFA 

contexts. 

24. Incumbent Local Exchange 

Carriers (LECs). Neither the Commission 

nor the SBA has developed a small 

business size standard specifically for 

incumbent local exchange services. The 

appropriate size standard under SBA 

rules is for the category Wired 

Telecommunications Carriers. Under 

that size standard, such a business is 

small if it has 1,500 or fewer employees. 

According to Commission data, 1,303 

carriers have reported that they are 

engaged in the provision of incumbent 

local exchange services. Of these 1,303 

carriers, an estimated 1,020 have 1,500 

or fewer employees and 283 have more 

than 1,500 employees. Consequently, 

the Commission estimates that most 

providers of incumbent local exchange 

service are small businesses that may be 

affected by our action. In addition, 

limited preliminary census data for 

2002 indicate that the total number of 

wired communications carriers 

increased approximately 34 percent 

from 1997 to 2002. 

25. Competitive Local Exchange 

Carriers, Competitive Access Providers 

(CAPs), ‘‘Shared-Tenant Service 

Providers,’’ and ‘‘Other Local Service 

Providers.’’ Neither the Commission nor 

the SBA has developed a small business 

size standard specifically for these 

service providers. The appropriate size 

standard under SBA rules is for the 

category Wired Telecommunications 

Carriers. Under that size standard, such 

a business is small if it has 1,500 or 

fewer employees. According to 

Commission data, 769 carriers have 

reported that they are engaged in the 

provision of either competitive access 

provider services or competitive local 

exchange carrier services. Of these 769 

carriers, an estimated 676 have 1,500 or 

fewer employees and 93 have more than 

1,500 employees. In addition, 12 

carriers have reported that they are 

‘‘Shared-Tenant Service Providers,’’ and 

all 12 are estimated to have 1,500 or 

fewer employees. In addition, 39 

carriers have reported that they are 

‘‘Other Local Service Providers.’’ Of the 

39, an estimated 38 have 1,500 or fewer 

employees and one has more than 1,500 

employees. Consequently, the 

Commission estimates that most 

providers of competitive local exchange 

service, competitive access providers, 

‘‘Shared-Tenant Service Providers,’’ and 

‘‘Other Local Service Providers’’ are 

small entities that may be affected by 

our action. In addition, limited 

preliminary census data for 2002 

indicate that the total number of wired 

communications carriers increased 

approximately 34 percent from 1997 to 

2002. 

26. Local Resellers. The SBA has 

developed a small business size 

standard for the category of 

Telecommunications Resellers. Under 

that size standard, such a business is 

small if it has 1,500 or fewer employees. 

According to Commission data, 143 

carriers have reported that they are 

engaged in the provision of local resale 

services. Of these, an estimated 141 

have 1,500 or fewer employees and two 

have more than 1,500 employees. 

Consequently, the Commission 

estimates that the majority of local 

resellers are small entities that may be 

affected by our action. 

27. Toll Resellers. The SBA has 

developed a small business size 

standard for the category of 

Telecommunications Resellers. Under 

that size standard, such a business is 

small if it has 1,500 or fewer employees. 

According to Commission data, 770 

carriers have reported that they are 

engaged in the provision of toll resale 

services. Of these, an estimated 747 

have 1,500 or fewer employees and 23 

have more than 1,500 employees. 

Consequently, the Commission 

Federal Register / Vol. 70, No. 199 / Monday, October 17, 2005 / Proposed Rules 60263 

estimates that the majority of toll 

resellers are small entities that may be 

affected by our action. 

28. Payphone Service Providers 

(PSPs). Neither the Commission nor the 

SBA has developed a small business 

size standard specifically for payphone 

services providers. The appropriate size 

standard under SBA rules is for the 

category Wired Telecommunications 

Carriers. Under that size standard, such 

a business is small if it has 1,500 or 

fewer employees. According to 

Commission data, 654 carriers have 

reported that they are engaged in the 

provision of payphone services. Of 

these, an estimated 652 have 1,500 or 

fewer employees and two have more 

than 1,500 employees. Consequently, 

the Commission estimates that the 

majority of payphone service providers 

are small entities that may be affected 

by our action. In addition, limited 

preliminary census data for 2002 

indicate that the total number of wired 

communications carriers increased 

approximately 34 percent from 1997 to 

2002. 

29. Interexchange Carriers (IXCs). 

Neither the Commission nor the SBA 

has developed a small business size 

standard specifically for providers of 

interexchange services. The appropriate 

size standard under SBA rules is for the 

category Wired Telecommunications 

Carriers. Under that size standard, such 

a business is small if it has 1,500 or 

fewer employees. According to 

Commission data, 316 carriers have 

reported that they are engaged in the 

provision of interexchange service. Of 

these, an estimated 292 have 1,500 or 

fewer employees and 24 have more than 

1,500 employees. Consequently, the 

Commission estimates that the majority 

of IXCs are small entities that may be 

affected by our action. In addition, 

limited preliminary census data for 

2002 indicate that the total number of 

wired communications carriers 

increased approximately 34 percent 

from 1997 to 2002. 

30. Operator Service Providers (OSPs). 

Neither the Commission nor the SBA 

has developed a small business size 

standard specifically for operator 

service providers. The appropriate size 

standard under SBA rules is for the 

category Wired Telecommunications 

Carriers. Under that size standard, such 

a business is small if it has 1,500 or 

fewer employees. According to 

Commission data, 23 carriers have 

reported that they are engaged in the 

provision of operator services. Of these, 

an estimated 20 have 1,500 or fewer 

employees and three have more than 

1,500 employees. Consequently, the 

Commission estimates that the majority 

of OSPs are small entities that may be 

affected by our action. In addition, 

limited preliminary census data for 

2002 indicate that the total number of 

wired communications carriers 

increased approximately 34 percent 

from 1997 to 2002. 

31. Prepaid Calling Card Providers. 

Neither the Commission nor the SBA 

has developed a small business size 

standard specifically for prepaid calling 

card providers. The appropriate size 

standard under SBA rules is for the 

category Telecommunications Resellers. 

Under that size standard, such a 

business is small if it has 1,500 or fewer 

employees. According to Commission 

data, 89 carriers have reported that they 

are engaged in the provision of prepaid 

calling cards. Of these, 88 are estimated 

to have 1,500 or fewer employees and 

one has more than 1,500 employees. 

Consequently, the Commission 

estimates that all or the majority of 

prepaid calling card providers are small 

entities that may be affected by our 

action. 

32. 800 and 800-Like Service 

Subscribers. Neither the Commission 

nor the SBA has developed a small 

business size standard specifically for 

800 and 800-like service (‘‘toll free’’) 

subscribers. The appropriate size 

standard under SBA rules is for the 

category Telecommunications Resellers. 

Under that size standard, such a 

business is small if it has 1,500 or fewer 

employees. The most reliable source of 

information regarding the number of 

these service subscribers appears to be 

data the Commission collects on the 

800, 888, and 877 numbers in use. 

According to our data, at the end of 

January, 1999, the number of 800 

numbers assigned was 7,692,955; the 

number of 888 numbers assigned was 

7,706,393; and the number of 877 

numbers assigned was 1,946,538. We do 

not have data specifying the number of 

these subscribers 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 toll 

free subscribers that would qualify as 

small businesses under the SBA size 

standard. Consequently, we estimate 

that there are 7,692,955 or fewer small 

entity 800 subscribers; 7,706,393 or 

fewer small entity 888 subscribers; and 

1,946,538 or fewer small entity 877 

subscribers. 

33. International Service Providers. 

The Commission has not developed a 

small business size standard specifically 

for providers of international service. 

The appropriate size standards under 

SBA rules are for the two broad 

categories of Satellite 

Telecommunications and Other 

Telecommunications. Under both 

categories, such a business is small if it 

has $12.5 million or less in average 

annual receipts. For the first category of 

Satellite Telecommunications, Census 

Bureau data for 1997 show that there 

were a total of 324 firms that operated 

for the entire year. Of this total, 273 

firms had annual receipts of under $10 

million, and an additional 24 firms had 

receipts of $10 million to $24,999,999. 

Thus, the majority of Satellite 

Telecommunications firms can be 

considered small. 

34. The second category—Other 

Telecommunications—includes 

‘‘establishments primarily engaged in 

* * * providing satellite terminal 

stations and associated facilities 

operationally connected with one or 

more terrestrial communications 

systems and capable of transmitting 

telecommunications to or receiving 

telecommunications from satellite 

systems.’’ According to Census Bureau 

data for 1997, there were 439 firms in 

this category that operated for the entire 

year. Of this total, 424 firms had annual 

receipts of $5 million to $9,999,999 and 

an additional six firms had annual 

receipts of $10 million to $24,999,990. 

Thus, under this second size standard, 

the majority of firms can be considered 

small. 

35. Wireless Telecommunications 

Service Providers. Below, for those 

services subject to auctions, we note 

that, as a general matter, the number of 

winning bidders that qualify as small 

businesses at the close of an auction 

does not necessarily represent the 

number of small businesses currently in 

service. Also, the Commission does not 

generally track subsequent business size 

unless, in the context of assignments or 

transfers, unjust enrichment issues are 

implicated. 

36. Wireless Service Providers. The 

SBA has developed a small business 

size standard for wireless firms within 

the two broad economic census 

categories of ‘‘Paging’’ and ‘‘Cellular and 

Other Wireless Telecommunications.’’

Under both SBA categories, a wireless 

business is small if it has 1,500 or fewer 

employees. For the census category of 

Paging, Census Bureau data for 1997 

show that there were 1,320 firms in this 

category, total, that operated for the 

entire year. Of this total, 1,303 firms had 

employment of 999 or fewer employees, 

and an additional 17 firms had 

employment of 1,000 employees or 

more. Thus, under this category and 

associated small business size standard, 

the majority of firms can be considered 

small. For the census category Cellular 

and Other Wireless 

60264 Federal Register / Vol. 70, No. 199 / Monday, October 17, 2005 / Proposed Rules 

Telecommunications, Census Bureau 

data for 1997 show that there were 977 

firms in this category, total, that 

operated for the entire year. Of this 

total, 965 firms had employment of 999 

or fewer employees, and an additional 

12 firms had employment of 1,000 

employees or more. Thus, under this 

second category and size standard, the 

majority of firms can, again, be 

considered small. In addition, limited 

preliminary census data for 2002 

indicate that the total number of paging 

providers decreased approximately 51 

percent from 1997 to 2002. In addition, 

limited preliminary census data for 

2002 indicate that the total number of 

cellular and other wireless 

telecommunications carriers increased 

approximately 321 percent from 1997 to 

2002. 

37. Cellular Licensees. The SBA has 

developed a small business size 

standard for wireless firms within the 

broad economic census category 

‘‘Cellular and Other Wireless 

Telecommunications.’’ Under this SBA 

category, a wireless business is small if 

it has 1,500 or fewer employees. For the 

census category Cellular and Other 

Wireless Telecommunications firms, 

Census Bureau data for 1997 show that 

there were 977 firms in this category, 

total, that operated for the entire year. 

Of this total, 965 firms had employment 

of 999 or fewer employees, and an 

additional 12 firms had employment of 

1,000 employees or more. Thus, under 

this category and size standard, the great 

majority of firms can be considered 

small. Also, according to Commission 

data, 437 carriers reported that they 

were engaged in the provision of 

cellular service, Personal 

Communications Service (PCS), or 

Specialized Mobile Radio (SMR) 

Telephony services, which are placed 

together in the data. We have estimated 

that 260 of these are small, under the 

SBA small business size standard. 

38. Common Carrier Paging. The SBA 

has developed a small business size 

standard for wireless firms within the 

broad economic census category, 

‘‘Cellular and Other Wireless 

Telecommunications.’’ Under this SBA 

category, a wireless business is small if 

it has 1,500 or fewer employees. For the 

census category of Paging, Census 

Bureau data for 1997 show that there 

were 1,320 firms in this category, total, 

that operated for the entire year. Of this 

total, 1,303 firms had employment of 

999 or fewer employees, and an 

additional 17 firms had employment of 

1,000 employees or more. Thus, under 

this category and associated small 

business size standard, the majority of 

firms can be considered small. In the 

Paging Third Report and Order, we 

developed a small business size 

standard for ‘‘small businesses’’ and 

‘‘very small businesses’’ for purposes of 

determining their eligibility for special 

provisions such as bidding credits and 

installment payments. A ‘‘small 

business’’ is 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 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 small business size standards. An 

auction of Metropolitan Economic Area 

licenses commenced on February 24, 

2000, and closed on March 2, 2000. Of 

the 985 licenses auctioned, 440 were 

sold. Fifty-seven companies claiming 

small business status won. Also, 

according to Commission data, 375 

carriers reported that they were engaged 

in the provision of paging and 

messaging services. Of those, we 

estimate that 370 are small, under the 

SBA-approved small business size 

standard. 

39. Wireless Communications 

Services. This service can be used for 

fixed, mobile, radiolocation, and digital 

audio broadcasting satellite uses. The 

Commission established small business 

size standards for the wireless 

communications services (WCS) 

auction. A ‘‘small business’’ is an entity 

with average gross revenues of $40 

million for each of the three preceding 

years, and a ‘‘very small business’’ is an 

entity with average gross revenues of 

$15 million for each of the three 

preceding years. The SBA has approved 

these small business size standards. The 

Commission auctioned geographic area 

licenses in the WCS service. In the 

auction, there were seven winning 

bidders that qualified as ‘‘very small 

business’’ entities, and one that 

qualified as a ‘‘small business’’ entity. 

40. Wireless Telephony. Wireless 

telephony includes cellular, personal 

communications services (PCS), and 

specialized mobile radio (SMR) 

telephony carriers. As noted earlier, the 

SBA has developed a small business 

size standard for ‘‘Cellular and Other 

Wireless Telecommunications’’ services. 

Under that SBA small business size 

standard, a business is small if it has 

1,500 or fewer employees. According to 

Commission data, 445 carriers reported 

that they were engaged in the provision 

of wireless telephony. We have 

estimated that 245 of these are small 

under the SBA small business size 

standard. 

41. Broadband Personal 

Communications Service. The 

broadband Personal Communications 

Service (PCS) spectrum is divided into 

six frequency blocks designated A 

through F, and the Commission has held 

auctions for each block. The 

Commission defined ‘‘small entity’’ for 

Blocks C and F as an entity that has 

average gross revenues of $40 million or 

less in the three previous calendar 

years. For Block F, an additional 

classification for ‘‘very small business’’

was added and is defined as an entity 

that, together with its affiliates, has 

average gross revenues of not more than 

$15 million for the preceding three 

calendar years.’’ These standards 

defining ‘‘small entity’’ in the context of 

broadband PCS auctions have been 

approved by the SBA. No small 

businesses, within the SBA-approved 

small business size standards bid 

successfully for licenses in Blocks A 

and B. There were 90 winning bidders 

that qualified as small entities in the 

Block C auctions. A total of 93 small 

and very small business bidders won 

approximately 40 percent of the 1,479 

licenses for Blocks D, E, and F. On 

March 23, 1999, the Commission reauctioned 347 C, D, E, and F Block 

licenses. There were 48 small business 

winning bidders. 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 ‘‘ small’’ businesses. 

Subsequent events, concerning Auction 

35, including judicial and agency 

determinations, resulted in a total of 163 

C and F Block licenses being available 

for grant. 

42. Narrowband Personal 

Communications Services. To date, two 

auctions of narrowband personal 

communications services (PCS) licenses 

have been conducted. For purposes of 

the two auctions that have already been 

held, ‘‘small businesses’’ were entities 

with average gross revenues for the prior 

three calendar years of $40 million or 

less. Through these auctions, the 

Commission has awarded a total of 41 

licenses, out of which 11 were obtained 

by small businesses. To ensure 

meaningful participation of small 

business entities in future auctions, the 

Commission has adopted a two-tiered 

small business size standard in the 

Narrowband PCS Second Report and 

Order. 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, 

Federal Register / Vol. 70, No. 199 / Monday, October 17, 2005 / Proposed Rules 60265 

together with affiliates and controlling 

interests, has average gross revenues for 

the three preceding years of not more 

than $15 million. The SBA has 

approved these small business size 

standards. In the future, the 

Commission will auction 459 licenses to 

serve Metropolitan Trading Areas 

(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. The Commission assumes, for 

purposes of this analysis 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. 

43. 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 small business size 

standard for 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 small business 

size standard under the SBA rules 

applicable to ‘‘Cellular and Other 

Wireless Telecommunications’’

companies. This category provides that 

a small business is a wireless company 

employing no more than 1,500 persons. 

For the census category Cellular and 

Other Wireless Telecommunications, 

Census Bureau data for 1997 show that 

there were 977 firms in this category, 

total, that operated for the entire year. 

Of this total, 965 firms had employment 

of 999 or fewer employees, and an 

additional 12 firms had employment of 

1,000 employees or more. Thus, under 

this second category and size standard, 

the majority of firms can, again, be 

considered small. Assuming this general 

ratio continues in the context of Phase 

I 220 MHz licensees, the Commission 

estimates that nearly all such licensees 

are small businesses under the SBA’s 

small business size standard. In 

addition, limited preliminary census 

data for 2002 indicate that the total 

number of cellular and other wireless 

telecommunications carriers increased 

approximately 321 percent from 1997 to 

2002. 

44. 220 MHz Radio Service—Phase II 

Licensees. The 220 MHz service has 

both Phase I and Phase II licenses. The 

Phase II 220 MHz service is a new 

service, and is subject to spectrum 

auctions. In the 220 MHz Third Report 

and Order, we adopted a small business 

size standard for ‘‘small’’ and ‘‘very 

small’’ businesses for purposes of 

determining their eligibility for special 

provisions such as bidding credits and 

installment payments. This small 

business size standard indicates that a 

‘‘small business’’ is 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 an entity that, together with 

its affiliates and controlling principals, 

has average gross revenues that do not 

exceed $3 million for the preceding 

three years. The SBA has approved 

these small business size standards. 

Auctions of Phase II licenses 

commenced on September 15, 1998, and 

closed on October 22, 1998. In the first 

auction, 908 licenses were auctioned in 

three different-sized geographic areas: 

Three nationwide licenses, 30 Regional 

Economic Area Group (EAG) Licenses, 

and 875 Economic Area (EA) Licenses. 

Of the 908 licenses auctioned, 693 were 

sold. Thirty-nine small businesses won 

licenses in the first 220 MHz auction. 

The second auction included 225 

licenses: 216 EA licenses and 9 EAG 

licenses. Fourteen companies claiming 

small business status won 158 licenses. 

45. 800 MHz and 900 MHz 

Specialized Mobile Radio Licenses. The 

Commission awards ‘‘small entity’’ and 

‘‘very small entity’’ bidding credits in 

auctions for Specialized Mobile Radio 

(SMR) geographic area licenses in the 

800 MHz and 900 MHz bands to firms 

that had revenues of no more than $15 

million in each of the three previous 

calendar years, or that had revenues of 

no more than $3 million in each of the 

previous calendar years, respectively. 

These bidding credits apply to SMR 

providers in the 800 MHz and 900 MHz 

bands that either hold geographic area 

licenses or have obtained extended 

implementation authorizations. The 

Commission does 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. The 

Commission assumes, for purposes here, 

that all of the remaining existing 

extended implementation 

authorizations are held by small 

entities, as that term is defined by the 

SBA. The Commission has held 

auctions for geographic area licenses in 

the 800 MHz and 900 MHz SMR bands. 

There were 60 winning bidders that 

qualified as small or very small entities 

in the 900 MHz SMR auctions. Of the 

1,020 licenses won in the 900 MHz 

auction, bidders qualifying as small or 

very small entities won 263 licenses. In 

the 800 MHz auction, 38 of the 524 

licenses won were won by small and 

very small entities. 

46. 700 MHz Guard Band Licensees. 

In the 700 MHz Guard Band Order, we 

adopted a small business size standard 

for ‘‘small businesses’’ and ‘‘very small 

businesses’’ for purposes of determining 

their eligibility for special provisions 

such as bidding credits and installment 

payments. 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 

an entity that, together with its affiliates 

and controlling principals, has average 

gross revenues that are not more than $3 

million for the preceding three years. 

An auction of 52 Major Economic Area 

(MEA) licenses commenced on 

September 6, 2000, and closed on 

September 21, 2000. Of the 104 licenses 

auctioned, 96 licenses were sold to nine 

bidders. Five of these bidders were 

small businesses that won a total of 26 

licenses. A second auction of 700 MHz 

Guard Band licenses commenced on 

February 13, 2001 and closed on 

February 21, 2001. All eight of the 

licenses auctioned were sold to three 

bidders. One of these bidders was a 

small business that won a total of two 

licenses. 

47. Rural Radiotelephone Service. The 

Commission has not adopted a size 

standard for small businesses specific to 

the Rural Radiotelephone Service. A 

significant subset of the Rural 

Radiotelephone Service is the Basic 

Exchange Telephone Radio System 

(BETRS). The Commission uses the 

SBA’s small business size standard 

applicable to ‘‘Cellular and Other 

Wireless Telecommunications,’’ i.e., an 

entity employing no more than 1,500 

persons. There are approximately 1,000 

licensees in the Rural Radiotelephone 

Service, and the Commission estimates 

that there are 1,000 or fewer small entity 

licensees in the Rural Radiotelephone 

Service that may be affected by the rules 

and policies adopted herein. 

60266 Federal Register / Vol. 70, No. 199 / Monday, October 17, 2005 / Proposed Rules 

48. Air-Ground Radiotelephone 

Service. The Commission has not 

adopted a small business size standard 

specific to the Air-Ground 

Radiotelephone Service. We will use 

SBA’s small business size standard 

applicable to ‘‘Cellular and Other 

Wireless Telecommunications,’’ 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 small business 

size standard. 

49. Aviation and Marine Radio 

Services. Small businesses in the 

aviation and marine radio services use 

a very high frequency (VHF) marine or 

aircraft radio and, as appropriate, an 

emergency position-indicating radio 

beacon (and/or radar) or an emergency 

locator transmitter. The Commission has 

not developed a small business size 

standard specifically applicable to these 

small businesses. For purposes of this 

analysis, the Commission uses the SBA 

small business size standard for the 

category ‘‘Cellular and Other 

Telecommunications,’’ which is 1,500 

or fewer employees. Most applicants for 

recreational licenses are individuals. 

Approximately 581,000 ship station 

licensees and 131,000 aircraft station 

licensees operate domestically and are 

not subject to the radio carriage 

requirements of any statute or treaty. 

For purposes of our evaluations in this 

analysis, we estimate that there are up 

to approximately 712,000 licensees that 

are small businesses (or individuals) 

under the SBA standard. In addition, 

between December 3, 1998 and 

December 14, 1998, the Commission 

held an auction of 42 VHF Public Coast 

licenses in the 157.1875–157.4500 MHz 

(ship transmit) and 161.775–162.0125 

MHz (coast transmit) bands. For 

purposes of the auction, the 

Commission defined a ‘‘small’’ business 

as an entity that, together with 

controlling interests and affiliates, has 

average gross revenues for the preceding 

three years not to exceed $15 million 

dollars. In addition, a ‘‘very small’’

business is one that, together with 

controlling interests and affiliates, has 

average gross revenues for the preceding 

three years not to exceed $3 million 

dollars. There are approximately 10,672 

licensees in the Marine Coast Service, 

and the Commission estimates that 

almost all of them qualify as ‘‘small’’

businesses under the above special 

small business size standards. 

50. Fixed Microwave Services. Fixed 

microwave services include common 

carrier, private operational-fixed, and 

broadcast auxiliary radio services. At 

present, there are approximately 22,015 

common carrier fixed licensees and 

61,670 private operational-fixed 

licensees and broadcast auxiliary radio 

licensees in the microwave services. 

The Commission has not created a size 

standard for a small business 

specifically with respect to fixed 

microwave services. For purposes of 

this analysis, the Commission uses the 

SBA small business size standard for the 

category ‘‘Cellular and Other 

Telecommunications,’’ which is 1,500 

or fewer employees. The Commission 

does not have data specifying the 

number of these licensees that have 

more than 1,500 employees, and thus is 

unable at this time to estimate with 

greater precision the number of fixed 

microwave service licensees that would 

qualify as small business concerns 

under the SBA’s small business size 

standard. Consequently, the 

Commission estimates that there are up 

to 22,015 common carrier fixed 

licensees and up to 61,670 private 

operational-fixed licensees and 

broadcast auxiliary radio licensees in 

the microwave services that may be 

small and may be affected by the rules 

and policies adopted herein. We noted, 

however, that the common carrier 

microwave fixed licensee category 

includes some large entities. 

51. Offshore Radiotelephone Service. 

This service operates on several UHF 

television broadcast channels that are 

not used for television broadcasting in 

the coastal areas of states bordering the 

Gulf of Mexico. There are presently 

approximately 55 licensees in this 

service. We are unable to estimate at 

this time the number of licensees that 

would qualify as small under the SBA’s 

small business size standard for 

‘‘Cellular and Other Wireless 

Telecommunications’’ services. Under 

that SBA small business size standard, 

a business is small if it has 1,500 or 

fewer employees. 

52. 39 GHz Service. The Commission 

created a special small business size 

standard for 39 GHz licenses—an entity 

that has average gross revenues of $40 

million or less in the three previous 

calendar years. An additional size 

standard for ‘‘very small business’’ is: an 

entity that, together with affiliates, has 

average gross revenues of not more than 

$15 million for the preceding three 

calendar years. The SBA has approved 

these small business size standards. The 

auction of the 2,173 39 GHz licenses 

began on April 12, 2000 and closed on 

May 8, 2000. The 18 bidders who 

claimed small business status won 849 

licenses. Consequently, the Commission 

estimates that 18 or fewer 39 GHz 

licensees are small entities that may be 

affected by the rules and polices 

adopted herein. 

53. Broadband Radio Service and 

Educational Broadband Service. 

Broadband Radio Service comprises 

Multichannel Multipoint Distribution 

Service (MMDS) systems and 

Multipoint Distribution Service (MDS). 

MMDS systems, often referred to as 

‘‘wireless cable,’’ transmit video 

programming to subscribers using the 

microwave frequencies of MDS and 

Educational Broadband Service 

(formerly known as Instructional 

Television Fixed Service). In connection 

with the 1996 MDS auction, the 

Commission established a small 

business size standard as an entity that 

had annual average gross revenues of 

less than $40 million in the previous 

three calendar years. The MDS auctions 

resulted in 67 successful bidders 

obtaining licensing opportunities for 

493 Basic Trading Areas (BTAs). Of the 

67 auction winners, 61 met the 

definition of a small business. MDS also 

includes licensees of stations authorized 

prior to the auction. In addition, the 

SBA has developed a small business 

size standard for Cable and Other 

Program Distribution, which includes 

all such companies generating $12.5 

million or less in annual receipts. 

According to Census Bureau data for 

1997, there were a total of 1,311 firms 

in this category, total, that had operated 

for the entire year. Of this total, 1,180 

firms had annual receipts of under $10 

million and an additional 52 firms had 

receipts of $10 million or more but less 

than $25 million. Consequently, we 

estimate that the majority of providers 

in the Broadband Radio Service category 

are small businesses that may be 

affected by the rules and policies 

adopted herein. This SBA small 

business size standard also appears 

applicable to Educational Broadband 

Service. There are presently 2,032 

Educational Broadband Service 

licensees. All but 100 of these licenses 

are held by educational institutions. 

Educational institutions are included in 

this analysis as small entities. Thus, we 

tentatively conclude that at least 1,932 

licensees are small businesses. 

54. Local Multipoint Distribution 

Service. Local Multipoint Distribution 

Service (LMDS) is a fixed broadband 

point-to-multipoint microwave service 

that provides for two-way video 

telecommunications. The auction of the 

1,030 Local Multipoint Distribution 

Service (LMDS) licenses began on 

February 18, 1998 and closed on March 

25, 1998. The Commission established a 

small business size standard for LMDS 

licenses as an entity that has average 

gross revenues of less than $40 million 

Federal Register / Vol. 70, No. 199 / Monday, October 17, 2005 / Proposed Rules 60267 

in the three previous calendar years. An 

additional small business size standard 

for ‘‘very small business’’ was added as 

an entity that, together with its affiliates, 

has average gross revenues of not more 

than $15 million for the preceding three 

calendar years. The SBA has approved 

these small business size standards in 

the context of LMDS auctions. There 

were 93 winning bidders that qualified 

as small entities in the LMDS auctions. 

A total of 93 small and very small 

business bidders won approximately 

277 A Block licenses and 387 B Block 

licenses. On March 27, 1999, the 

Commission re-auctioned 161 licenses; 

there were 40 winning bidders. Based 

on this information, we conclude that 

the number of small LMDS licenses 

consists of the 93 winning bidders in 

the first auction and the 40 winning 

bidders in the re-auction, for a total of 

133 small entity LMDS providers. 

55. 218–219 MHz Service. The first 

auction of 218–219 MHz spectrum 

resulted in 170 entities winning licenses 

for 594 Metropolitan Statistical Area 

(MSA) licenses. Of the 594 licenses, 557 

were won by entities qualifying as a 

small business. For that auction, the 

small business size standard was an 

entity that, together with its affiliates, 

has no more than a $6 million net worth 

and, after federal income taxes 

(excluding any carry over losses), has no 

more than $2 million in annual profits 

each year for the previous two years. In 

the 218–219 MHz Report and Order and 

Memorandum Opinion and Order, we 

established a small business size 

standard for a ‘‘small business’’ as an 

entity that, together with its affiliates 

and persons or entities that hold 

interests in such an entity and their 

affiliates, has average annual gross 

revenues not to exceed $15 million for 

the preceding three years. A ‘‘very small 

business’’ is defined as an entity that, 

together with its affiliates and persons 

or entities that hold interests in such an 

entity and its affiliates, has average 

annual gross revenues not to exceed $3 

million for the preceding three years. 

We cannot estimate, however, the 

number of licenses that will be won by 

entities qualifying as small or very small 

businesses under our rules in future 

auctions of 218–219 MHz spectrum. 

56. 24 GHz—Incumbent Licensees. 

This analysis may affect incumbent 

licensees who were relocated to the 24 

GHz band from the 18 GHz band, and 

applicants who wish to provide services 

in the 24 GHz band. The applicable SBA 

small business size standard is that of 

‘‘Cellular and Other Wireless 

Telecommunications’’ companies. This 

category provides that such a company 

is small if it employs no more than 

1,500 persons. According to Census 

Bureau data for 1997, there were 977 

firms in this category, total, that 

operated for the entire year. Of this 

total, 965 firms had employment of 999 

or fewer employees, and an additional 

12 firms had employment of 1,000 

employees or more. Thus, under this 

size standard, the great majority of firms 

can be considered small. These broader 

census data notwithstanding, we believe 

that there are only two licensees in the 

24 GHz band that were relocated from 

the 18 GHz band, Teligent and TRW, 

Inc. It is our understanding that Teligent 

and its related companies have less than 

1,500 employees, though this may 

change in the future. TRW is not a small 

entity. Thus, only one incumbent 

licensee in the 24 GHz band is a small 

business entity. 

57. 24 GHz—Future Licensees. With 

respect to new applicants in the 24 GHz 

band, the small business size standard 

for ‘‘small business’’ is an entity that, 

together with controlling interests and 

affiliates, has average annual gross 

revenues for the three preceding years 

not in excess of $15 million. ‘‘Very 

small business’’ in the 24 GHz band is 

an entity that, together with controlling 

interests and affiliates, has average gross 

revenues not exceeding $3 million for 

the preceding three years. The SBA has 

approved these small business size 

standards. These size standards will 

apply to the future auction, if held. 

58. Cable and OVS Operators: Cable 

and Other Program Distribution. This 

category includes cable systems 

operators, closed circuit television 

services, direct broadcast satellite 

services, multipoint distribution 

systems, satellite master antenna 

systems, and subscription television 

services. The SBA has developed small 

business size standard for this census 

category, which includes all such 

companies generating $12.5 million or 

less in revenue annually. According to 

Census Bureau data for 1997, there were 

a total of 1,311 firms in this category, 

total, that had operated for the entire 

year. Of this total, 1,180 firms had 

annual receipts of under $10 million 

and an additional 52 firms had receipts 

of $10 million or more but less than $25 

million. Consequently, the Commission 

estimates that the majority of providers 

in this service category are small 

businesses that may be affected by the 

rules and policies adopted herein. 

59. Cable System Operators (Rate 

Regulation Standard). The Commission 

has developed its own small business 

size standard for cable system operators, 

for purposes of rate regulation. Under 

the Commission’s rules, a ‘‘small cable 

company’’ is one serving fewer than 

400,000 subscribers nationwide. The 

most recent estimates indicate that there 

were 1,439 cable operators who 

qualified as small cable system 

operators at the end of 1995. Since then, 

some of those companies may have 

grown to serve over 400,000 subscribers, 

and others may have been involved in 

transactions that caused them to be 

combined with other cable operators. 

Consequently, the Commission 

estimates that there are now fewer than 

1,439 small entity cable system 

operators that may be affected by the 

rules and policies adopted herein. 

60. Cable System Operators (Telecom 

Act Standard). The Communications 

Act of 1934, as amended, also contains 

a size standard for small cable system 

operators, which is ‘‘a cable operator 

that, directly or through an affiliate, 

serves in the aggregate fewer than 1 

percent of all subscribers in the United 

States and is not affiliated with any 

entity or entities whose gross annual 

revenues in the aggregate exceed 

$250,000,000.’’ The Commission has 

determined that there are 67,700,000 

subscribers in the United States. 

Therefore, an operator serving fewer 

than 677,000 subscribers shall be 

deemed a small operator, if its annual 

revenues, when combined with the total 

annual revenues of all its affiliates, do 

not exceed $250 million in the 

aggregate. Based on available data, the 

Commission estimates that the number 

of cable operators serving 677,000 

subscribers or fewer, totals 1,450. The 

Commission neither requests nor 

collects information on whether cable 

system operators are affiliated with 

entities whose gross annual revenues 

exceed $250 million, and therefore are 

unable, at this time, to estimate more 

accurately the number of cable system 

operators that would qualify as small 

cable operators under the size standard 

contained in the Communications Act of 

1934. 

61. Open Video Services. Open Video 

Service (OVS) systems provide 

subscription services. The SBA has 

created a small business size standard 

for Cable and Other Program 

Distribution. This standard provides 

that a small entity is one with $12.5 

million or less in annual receipts. The 

Commission has certified approximately 

25 OVS operators to serve 75 areas, and 

some of these are currently providing 

service. Affiliates of Residential 

Communications Network, Inc. (RCN) 

received approval to operate OVS 

systems in New York City, Boston, 

Washington, DC, and other areas. RCN 

has sufficient revenues to assure that 

they do not qualify as a small business 

entity. Little financial information is 

60268 Federal Register / Vol. 70, No. 199 / Monday, October 17, 2005 / Proposed Rules 

available for the other entities that are 

authorized to provide OVS and are not 

yet operational. Given that some entities 

authorized to provide OVS service have 

not yet begun to generate revenues, the 

Commission concludes that up to 24 

OVS operators (those remaining) might 

qualify as small businesses that may be 

affected by the rules and policies 

adopted herein. 

62. Internet Service Providers. The 

SBA has developed a small business 

size standard for Internet Service 

Providers (ISPs). ISPs ‘‘provide clients 

access to the Internet and generally 

provide related services such as Web 

hosting, Web page designing, and 

hardware or software consulting related 

to Internet connectivity.’’ Under the 

SBA size standard, such a business is 

small if it has average annual receipts of 

$21 million or less. According to Census 

Bureau data for 1997, there were 2,751 

firms in this category that operated for 

the entire year. Of these, 2,659 firms had 

annual receipts of under $10 million, 

and an additional 67 firms had receipts 

of between $10 million and $24, 

999,999. Consequently, we estimate that 

the majority of these firms are small 

entities that may be affected by our 

action. In addition, limited preliminary 

census data for 2002 indicate that the 

total number of Internet service 

providers increased approximately five 

percent from 1997 to 2002. 

63. Other Internet-Related Entities: 

Web Search Portals. Our action pertains 

to VoIP services, which could be 

provided by entities that provide other 

services such as e-mail, online gaming, 

Web browsing, video conferencing, 

instant messaging, and other, similar IPenabled services. The Commission has 

not adopted a size standard for entities 

that create or provide these types of 

services or applications. However, the 

census bureau has identified firms that 

‘‘operate Web sites that use a search 

engine to generate and maintain 

extensive databases of Internet 

addresses and content in an easily 

searchable format. Web search portals 

often provide additional Internet 

services, such as e-mail, connections to 

other Web sites, auctions, news, and 

other limited content, and serve as a 

home base for Internet users.’’ The SBA 

has developed a small business size 

standard for this category; that size 

standard is $6 million or less in average 

annual receipts. According to Census 

Bureau data for 1997, there were 195 

firms in this category that operated for 

the entire year. Of these, 172 had annual 

receipts of under $5 million, and an 

additional nine firms had receipts of 

between $5 million and $9,999,999. 

Consequently, we estimate that the 

majority of these firms are small entities 

that may be affected by our action. 

64. Data Processing, Hosting, and 

Related Services. Entities in this 

category ‘‘primarily * * * provid[e] 

infrastructure for hosting or data 

processing services.’’ The SBA has 

developed a small business size 

standard for this category; that size 

standard is $21 million or less in 

average annual receipts. According to 

Census Bureau data for 1997, there were 

3,700 firms in this category that 

operated for the entire year. Of these, 

3,477 had annual receipts of under $10 

million, and an additional 108 firms had 

receipts of between $10 million and 

$24,999,999. Consequently, we estimate 

that the majority of these firms are small 

entities that may be affected by our 

action. 

65. All Other Information Services. 

This industry comprises establishments 

primarily engaged in providing other 

information services (except new 

syndicates and libraries and archives). 

Our action pertains to VoIP services, 

which could be provided by entities that 

provide other services such as e-mail, 

online gaming, Web browsing, video 

conferencing, instant messaging, and 

other, similar IP-enabled services. The 

SBA has developed a small business 

size standard for this category; that size 

standard is $6 million or less in average 

annual receipts. According to Census 

Bureau data for 1997, there were 195 

firms in this category that operated for 

the entire year. Of these, 172 had annual 

receipts of under $5 million, and an 

additional nine firms had receipts of 

between $5 million and $9,999,999. 

Consequently, we estimate that the 

majority of these firms are small entities 

that may be affected by our action. 

66. Internet Publishing and 

Broadcasting. This industry comprises 

establishments engaged in publishing 

and/or broadcasting content on the 

Internet exclusively. These 

establishments do not provide 

traditional (non-Internet) versions of the 

content that they publish or broadcast. 

The SBA has developed a small 

business size standard for this new 

(2002) census category; that size 

standard is 500 or fewer employees. To 

assess the prevalence of small entities in 

this category, we will use 1997 Census 

Bureau data for a relevant, nowsuperseded census category, ‘‘All Other 

Information Services.’’ The SBA small 

business size standard for that prior 

category was $6 million or less in 

average annual receipts. According to 

Census Bureau data for 1997, there were 

195 firms in the prior category that 

operated for the entire year. Of these, 

172 had annual receipts of under $5 

million, and an additional nine firms 

had receipts of between $5 million and 

$9,999,999. Consequently, we estimate 

that the majority of the firms in this 

current category are small entities that 

may be affected by our action. 

67. Software Publishers. These 

companies may design, develop or 

publish software and may provide other 

support services to software purchasers, 

such as providing documentation or 

assisting in installation. The companies 

may also design software to meet the 

needs of specific users. The SBA has 

developed a small business size 

standard of $21 million or less in 

average annual receipts for all of the 

following pertinent categories: Software 

Publishers, Custom Computer 

Programming Services, and Other 

Computer Related Services. For 

Software Publishers, Census Bureau 

data for 1997 indicate that there were 

8,188 firms in the category that operated 

for the entire year. Of these, 7,633 had 

annual receipts under $10 million, and 

an additional 289 firms had receipts of 

between $10 million and $24, 999,999. 

For providers of Custom Computer 

Programming Services, the Census 

Bureau data indicate that there were 

19,334 firms that operated for the entire 

year. Of these, 18,786 had annual 

receipts of under $10 million, and an 

additional 352 firms had receipts of 

between $10 million and $24,999,999. 

For providers of Other Computer 

Related Services, the Census Bureau 

data indicate that there were 5,524 firms 

that operated for the entire year. Of 

these, 5,484 had annual receipts of 

under $10 million, and an additional 28 

firms had receipts of between $10 

million and $24,999,999. Consequently, 

we estimate that the majority of the 

firms in each of these three categories 

are small entities that may be affected 

by our action. 

68. Equipment Manufacturers. The 

equipment manufacturers described in 

this section are apparently merely 

indirectly affected by our current action, 

and therefore would not formally be a 

part of this RFA analysis. We have 

included them, however, to broaden the 

record in this proceeding and to alert 

them to our decisions. 

69. Wireless Communications 

Equipment Manufacturers. The SBA has 

established a small business size 

standard for Radio and Television 

Broadcasting and Wireless 

Communications Equipment 

Manufacturing. Examples of products in 

this category include ‘‘transmitting and 

receiving antennas, cable television 

equipment, GPS equipment, pagers, 

cellular phones, mobile 

communications equipment, and radio 

Federal Register / Vol. 70, No. 199 / Monday, October 17, 2005 / Proposed Rules 60269 

and television studio and broadcasting 

equipment’’ and may include other 

devices that transmit and receive IPenabled services, such as personal 

digital assistants (PDAs). Under the SBA 

size standard, firms are considered 

small if they have 750 or fewer 

employees. According to Census Bureau 

data for 1997, there were 1,215 

establishments in this category that 

operated for the entire year. Of those, 

there were 1,150 that had employment 

of under 500, and an additional 37 that 

had employment of 500 to 999. The 

percentage of wireless equipment 

manufacturers in this category was 

approximately 61.35%, so we estimate 

that the number of wireless equipment 

manufacturers with employment of 

under 500 was actually closer to 706, 

with an additional 23 establishments 

having employment of between 500 and 

999. Consequently, we estimate that the 

majority of wireless communications 

equipment manufacturers are small 

entities that may be affected by our 

action. 

70. Telephone Apparatus 

Manufacturing. This category 

‘‘comprises establishments primarily 

engaged primarily in manufacturing 

wire telephone and data 

communications equipment.’’ Examples 

of pertinent products are ‘‘central office 

switching equipment, cordless 

telephones (except cellular), PBX 

equipment, telephones, telephone 

answering machines, and data 

communications equipment, such as 

bridges, routers, and gateways.’’ The 

SBA has developed a small business 

size standard for this category of 

manufacturing; that size standard is 

1,000 or fewer employees. According to 

Census Bureau data for 1997, there were 

598 establishments in this category that 

operated for the entire year. Of these, 

574 had employment of under 1,000, 

and an additional 17 establishments had 

employment of 1,000 to 2,499. 

Consequently, we estimate that the 

majority of these establishments are 

small entities that may be affected by 

our action. 

71. Electronic Computer 

Manufacturing. This category 

‘‘comprises establishments primarily 

engaged in manufacturing and/or 

assembling electronic computers, such 

as mainframes, personal computers, 

workstations, laptops, and computer 

servers.’’ The SBA has developed a 

small business size standard for this 

category of manufacturing; that size 

standard is 1,000 or fewer employees. 

According to Census Bureau data for 

1997, there were 563 establishments in 

this category that operated for the entire 

year. Of these, 544 had employment of 

under 1,000, and an additional 11 

establishments had employment of 

1,000 to 2,499. Consequently, we 

estimate that the majority of these 

establishments are small entities that 

may be affected by our action. 

72. Computer Terminal 

Manufacturing. ‘‘Computer terminals 

are input/output devices that connect 

with a central computer for processing.’’

The SBA has developed a small 

business size standard for this category 

of manufacturing; that size standard is 

1,000 or fewer employees. According to 

Census Bureau data for 1997, there were 

142 establishments in this category that 

operated for the entire year, and all of 

the establishments had employment of 

under 1,000. Consequently, we estimate 

that the majority or all of these 

establishments are small entities that 

may be affected by our action. 

73. Other Computer Peripheral 

Equipment Manufacturing. Examples of 

peripheral equipment in this category 

include keyboards, mouse devices, 

monitors, and scanners. The SBA has 

developed a small business size 

standard for this category of 

manufacturing; that size standard is 

1,000 or fewer employees. According to 

Census Bureau data for 1997, there were 

1061 establishments in this category 

that operated for the entire year. Of 

these, 1,046 had employment of under 

1,000, and an additional six 

establishments had employment of 

1,000 to 2,499. Consequently, we 

estimate that the majority of these 

establishments are small entities that 

may be affected by our action. 

74. Fiber Optic Cable Manufacturing. 

These establishments manufacture 

‘‘insulated fiber-optic cable from 

purchased fiber-optic strand.’’ The SBA 

has developed a small business size 

standard for this category of 

manufacturing; that size standard is 

1,000 or fewer employees. According to 

Census Bureau data for 1997, there were 

38 establishments in this category that 

operated for the entire year. Of these, 37 

had employment of under 1,000, and 

one establishment had employment of 

1,000 to 2,499. Consequently, we 

estimate that the majority of these 

establishments are small entities that 

may be affected by our action. 

75. Other Communication and Energy 

Wire Manufacturing. These 

establishments manufacture ‘‘insulated 

wire and cable of nonferrous metals 

from purchased wire.’’ The SBA has 

developed a small business size 

standard for this category of 

manufacturing; that size standard is 

1,000 or fewer employees. According to 

Census Bureau data for 1997, there were 

275 establishments in this category that 

operated for the entire year. Of these, 

271 had employment of under 1,000, 

and four establishments had 

employment of 1,000 to 2,499. 

Consequently, we estimate that the 

majority or all of these establishments 

are small entities that may be affected 

by our action. 

76. Audio and Video Equipment 

Manufacturing. These establishments 

manufacture ‘‘electronic audio and 

video equipment for home 

entertainment, motor vehicle, public 

address and musical instrument 

amplifications.’’ The SBA has 

developed a small business size 

standard for this category of 

manufacturing; that size standard is 750 

or fewer employees. According to 

Census Bureau data for 1997, there were 

554 establishments in this category that 

operated for the entire year. Of these, 

542 had employment of under 500, and 

nine establishments had employment of 

500 to 999. Consequently, we estimate 

that the majority of these establishments 

are small entities that may be affected 

by our action. 

77. Electron Tube Manufacturing. 

These establishments are ‘‘primarily 

engaged in manufacturing electron tubes 

and parts (except glass blanks).’’ The 

SBA has developed a small business 

size standard for this category of 

manufacturing; that size standard is 750 

or fewer employees. According to 

Census Bureau data for 1997, there were 

158 establishments in this category that 

operated for the entire year. Of these, 

148 had employment of under 500, and 

three establishments had employment of 

500 to 999. Consequently, we estimate 

that the majority of these establishments 

are small entities that may be affected 

by our action. 

78. Bare Printed Circuit Board 

Manufacturing. These establishments 

are ‘‘primarily engaged in 

manufacturing bare (i.e., rigid or 

flexible) printed circuit boards without 

mounted electronic components.’’ The 

SBA has developed a small business 

size standard for this category of 

manufacturing; that size standard is 500 

or fewer employees. According to 

Census Bureau data for 1997, there were 

1,389 establishments in this category 

that operated for the entire year. Of 

these, 1,369 had employment of under 

500, and 16 establishments had 

employment of 500 to 999. 

Consequently, we estimate that the 

majority of these establishments are 

small entities that may be affected by 

our action. 

79. Semiconductor and Related 

Device Manufacturing. These 

establishments manufacture ‘‘computer 

storage devices that allow the storage 

60270 Federal Register / Vol. 70, No. 199 / Monday, October 17, 2005 / Proposed Rules 

and retrieval of data from a phase 

change, magnetic, optical, or magnetic/ 

optical media.’’ The SBA has developed 

a small business size standard for this 

category of manufacturing; that size 

standard is 500 or fewer employees. 

According to Census Bureau data for 

1997, there were 1,082 establishments 

in this category that operated for the 

entire year. Of these, 987 had 

employment of under 500, and 52 

establishments had employment of 500 

to 999. 

80. Electronic Capacitor 

Manufacturing. These establishments 

manufacture ‘‘electronic fixed and 

variable capacitors and condensers.’’

The SBA has developed a small 

business size standard for this category 

of manufacturing; that size standard is 

500 or fewer employees. According to 

Census Bureau data for 1997, there were 

128 establishments in this category that 

operated for the entire year. Of these, 

121 had employment of under 500, and 

four establishments had employment of 

500 to 999. 

81. Electronic Resistor Manufacturing. 

These establishments manufacture 

‘‘electronic resistors, such as fixed and 

variable resistors, resistor networks, 

thermistors, and varistors.’’ The SBA 

has developed a small business size 

standard for this category of 

manufacturing; that size standard is 500 

or fewer employees. According to 

Census Bureau data for 1997, there were 

118 establishments in this category that 

operated for the entire year. Of these, 

113 had employment of under 500, and 

5 establishments had employment of 

500 to 999. 

82. Electronic Coil, Transformer, and 

Other Inductor Manufacturing. These 

establishments manufacture ‘‘electronic 

inductors, such as coils and 

transformers.’’ The SBA has developed 

a small business size standard for this 

category of manufacturing; that size 

standard is 500 or fewer employees. 

According to Census Bureau data for 

1997, there were 448 establishments in 

this category that operated for the entire 

year. Of these, 446 had employment of 

under 500, and two establishments had 

employment of 500 to 999. 

83. Electronic Connector 

Manufacturing. These establishments 

manufacture ‘‘electronic connectors, 

such as coaxial, cylindrical, rack and 

panel, pin and sleeve, printed circuit 

and fiber optic.’’ The SBA has 

developed a small business size 

standard for this category of 

manufacturing; that size standard is 500 

or fewer employees. According to 

Census Bureau data for 1997, there were 

347 establishments in this category that 

operated for the entire year. Of these, 

332 had employment of under 500, and 

12 establishments had employment of 

500 to 999. 

84. Printed Circuit Assembly 

(Electronic Assembly) Manufacturing. 

These are establishments ‘‘primarily 

engaged in loading components onto 

printed circuit boards or who 

manufacture and ship loaded printed 

circuit boards.’’ The SBA has developed 

a small business size standard for this 

category of manufacturing; that size 

standard is 500 or fewer employees. 

According to Census Bureau data for 

1997, there were 714 establishments in 

this category that operated for the entire 

year. Of these, 673 had employment of 

under 500, and 24 establishments had 

employment of 500 to 999. 

85. Other Electronic Component 

Manufacturing. These are 

establishments ‘‘primarily engaged in 

loading components onto printed circuit 

boards or who manufacture and ship 

loaded printed circuit boards.’’ The SBA 

has developed a small business size 

standard for this category of 

manufacturing; that size standard is 500 

or fewer employees. According to 

Census Bureau data for 1997, there were 

1,835 establishments in this category 

that operated for the entire year. Of 

these, 1,814 had employment of under 

500, and 18 establishments had 

employment of 500 to 999. 

86. Computer Storage Device 

Manufacturing. These establishments 

manufacture ‘‘computer storage devices 

that allow the storage and retrieval of 

data from a phase change, magnetic, 

optical, or magnetic/optical media.’’ The 

SBA has developed a small business 

size standard for this category of 

manufacturing; that size standard is 

1,000 or fewer employees. According to 

Census Bureau data for 1997, there were 

209 establishments in this category that 

operated for the entire year. Of these, 

197 had employment of under 500, and 

eight establishments had employment of 

500 to 999 

Description of Projected Reporting, 

Recordkeeping and Other Compliance 

Requirements 

87. Should the Commission decide to 

adopt any regulations to ensure that 

consumer protection needs are met by 

all providers of broadband Internet 

access service, the associated rules 

potentially could modify the reporting 

and recordkeeping requirements of 

certain broadband Internet access 

services providers. We could, for 

instance, require that broadband 

Internet access service providers must 

comply with slamming, truth-in-billingtype protections, or network outage 

reporting requirements. These proposals 

may impose additional reporting or 

recordkeeping requirements on entities. 

We seek comment on the possible 

burden these requirements would place 

on small entities. Also, we seek 

comment on whether a special approach 

toward any possible compliance 

burdens on small entities might be 

appropriate. Entities, especially small 

businesses, are encouraged to quantify 

the costs and benefits of any reporting 

requirement that may be established in 

this proceeding. 

Steps Taken To Minimize Significant 

Economic Impact on Small Entities, and 

Significant Alternatives Considered 

88. The RFA requires an agency to 

describe any significant alternatives that 

it has considered in reaching its 

proposed approach, which may include 

(among others) the following four 

alternatives: (1) The establishment of 

differing compliance or reporting 

requirements or timetables that take into 

account the resources available to small 

entities; (2) the clarification, 

consolidation, or simplification of 

compliance or reporting requirements 

under the rule for small entities; (3) the 

use of performance, rather than design, 

standards; and (4) an exemption from 

coverage of the rule, or any part thereof, 

for small entities. 

89. The Commission’s primary 

objective is to develop a framework for 

consumer protection in the broadband 

era—a framework that ensures that 

consumer protection needs are met by 

all providers of broadband Internet 

access service, regardless of the 

underlying technology. We seek 

comment here on the effect the various 

proposals described in the NPRM, and 

summarized below, will have on small 

entities, and on what effect alternative 

rules would have on those entities. We 

invite comment on ways in which the 

Commission can achieve its goal of 

protecting consumers while at the same 

time impose minimal burdens on small 

broadband Internet access service 

providers. With respect to any of our 

consumer protection regulations already 

in place, has the Commission adopted 

any provisions for small entities that we 

should similarly consider here? 

90. CPNI. In this NPRM, the 

Commission asks whether it should 

extend privacy requirements similar to 

the Act’s CPNI requirements to 

providers of broadband Internet access 

services. We ask, for example, whether 

we should forbid broadband Internet 

access providers from disclosing, 

without their customers’ approval, 

information about their customers that 

they learn through the provision of their 

broadband Internet access service. By 

Federal Register / Vol. 70, No. 199 / Monday, October 17, 2005 / Proposed Rules 60271 

developing the record with respect to 

privacy concerns, the Commission can 

appropriately determine whether 

providers of broadband Internet access 

services, including small entities, 

should be subject to similar privacy 

regulations. 

91. Slamming. We seek comment on 

whether we should impose slamming 

requirements on providers of broadband 

Internet access service and to explain in 

what circumstances subscribers to 

broadband Internet access could get 

‘‘slammed.’’ We also ask whether the 

provisioning process for broadband 

Internet access service is such that an 

unauthorized change in provider is 

more likely in situations where the 

provider relies on third-party broadband 

transmission facilities. We recognize 

that small broadband Internet access 

service providers may rely more on 

third-party broadband transmission 

facilities and could potentially inform 

the Commission as to whether slamming 

is likely to occur in those situations. 

92. Truth-in-Billing. We invite 

comment on whether we should impose 

requirements on broadband Internet 

access service providers that are similar 

to our truth-in-billing requirements or 

are otherwise geared toward reducing 

slamming, cramming, or other types of 

telecommunications-related fraud. We 

ask parties to explain what problems 

customers of broadband Internet access 

service are likely to have with their bills 

and whether we should address these 

problems through truth-in-billing-type 

requirements. What effect will this 

proposal have on small entities, and are 

there alternatives to imposing truth-inbilling type regulations? 

93. Network Outage Reporting. We 

seek comment as to whether broadband 

Internet access service providers should 

notify the Commission of outages of 

thirty or more minutes that affect a 

substantial number of customers or 

involve major airports, major military 

installations, key government facilities, 

nuclear power plants, or 911 facilities. 

We encourage small entities to identify 

any alternatives that would protect 

consumers while at the same time 

minimizing any burden on small 

broadband Internet access providers. 

94. Section 214 Discontinuance. In 

the NPRM, the Commission stated that 

section 214 of the Act limits a 

telecommunications carrier’s ability to 

discontinue unilaterally its service to 

customers. The Commission’s 

implementing rules generally require 

that domestic carriers wishing to 

‘‘discontinue, reduce, or impair’’

services must first request authority to 

do so from the Commission and must 

notify affected customers and others of 

their plans. We ask whether the 

Commission should impose 

discontinuance-type requirements on 

providers of broadband Internet access 

service. 

95. Section 254(g) Rate Averaging 

Requirements. In the NPRM, the 

Commission explains that section 254(g) 

required the Commission to adopt rules 

‘‘to require that the rates charged by 

providers of interexchange 

telecommunications services to 

subscribers in rural and high cost areas 

* * * be no higher than the rates 

charged by each such provider to its 

subscribers in urban areas.’’ We ask, for 

example, whether we should adopt 

similar rate averaging requirements on 

providers of broadband Internet access 

services, particularly as consumers 

substitute broadband services and 

applications for narrowband services 

that were covered by section 254(g). 

96. In the NPRM, we ask commenters 

to address whether the imposition of 

regulations pursuant to our ancillary 

jurisdiction, and the corresponding 

ability of consumers to take advantage 

of Commission avenues for resolution of 

consumer protection issues, is desirable 

and necessary as a matter of public 

policy, or whether we should rely on 

market forces to address some or all of 

the areas listed. The option of relying on 

market forces may benefit entities, 

especially small entities, who may find 

it costly or burdensome to comply with 

Commission regulations. We also ask 

whether these types of regulations are 

more or less relevant in the context of 

broadband Internet access service than 

they are for traditional telephony 

services. In addition, we ask 

commenters to describe any technical, 

economic, or other impediments that 

may affect the ability of broadband 

Internet access service providers to 

comply with such regulations. We also 

ask whether there are areas of consumer 

protection not listed above for which 

the Commission should impose 

regulations. 

97. Federal and State Involvement. To 

the extent that the Commission finds it 

necessary to impose consumer 

protection and related regulations on 

broadband Internet access service 

providers, we also seek comment on 

how best to harmonize federal 

regulations with the states’ efforts and 

expertise in these areas. 

Federal Rules That May Duplicate, 

Overlap, or Conflict With the Proposed 

Rules 

98. None. 

Ordering Clauses 

99. Accordingly, it is ordered that, 

pursuant to sections 1–4, 10, 201–205, 

214, 222, 225, 251, 252, 254–256, 258, 

303(r) of the Communications Act of 

1934, as amended, 47 U.S.C. 151–154, 

160, 201–205, 214, 222, 225, 251, 252, 

254–256, 258, 303(r), and section 706 of 

the Telecommunications Act of 1996, 47 

U.S.C. 157 nt, the Report and Order and 

Notice of Proposed Rulemaking are 

adopted. 

100. It is further ordered that the 

Commission’s Consumer and 

Governmental Affairs 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. 

Federal Communications Commission. 

Marlene H. Dortch, 

Secretary. 

[FR Doc. 05–20831 Filed 10–14–05; 8:45 am] 

BILLING CODE 6712–01–P