[Federal Register Volume 70, Number 226 (Friday, November 25, 2005)]
[Proposed Rules]
[Pages 71072-71077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-23270]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 11

[EB Docket No. 04-296; FCC 05-191]


Review of the Emergency Alert System

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) examines the reach of Emergency Alert System (EAS), as 
currently constituted, to cover digital communications technologies 
that are increasingly being used by the American public to receive news 
and entertainment--digital television and radio, digital cable, and 
satellite television and radio. The Further Notice of Proposed 
Rulemaking is the most recent in a series of proceedings in which the 
Commission has sought to contribute to an efficient and technologically 
current public alert and warning system.

DATES: Comments are due on or before January 24, 2006, and reply 
comments are due on or before February 23, 2006. Written comments on 
the Paperwork Reduction Act proposed information collection 
requirements must be submitted to the public, Office of Management and 
Budget (OMB), and other interested parties on or before January 24, 
2006.

ADDRESSES: Send comments and reply comments to the Office of the 
Secretary, Federal Communications Commission, 445 12th Street, SW., 
Room TW-A325, Washington, DC 20554. You may submit comments, identified 
by EB Docket No. 04-296, by any of the following methods:
    <bullet> Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    <bullet> Federal Communications Commission's Web site: http://www.fcc.gov/cgb/ecfs/. Follow the instructions for submitting comments.
    <bullet> People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by e-mail: <a href="/cdn-cgi/l/email-protection#b4f2f7f7818480f4d2d7d79ad3dbc2"><span class="__cf_email__" data-cfemail="96d0d5d5a3a6a2d6f0f5f5b8f1f9e0">[email protected]</span></a> or phone: 202-418-
0530 or TTY: 202-418-0432.

For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document. You may submit your Paperwork 
Reduction Act (PRA) comments by electronic mail or U.S. mail. To submit 
your PRA comments by electronic mail, send comments to: <a href="/cdn-cgi/l/email-protection#60303221200603034e070f16"><span class="__cf_email__" data-cfemail="21717360614742420f464e57">[email protected]</span></a>. To 
submit your PRA comments by U.S. mail, mark them to the attention of 
Judith B. Herman and address them to the Federal Communications 
Commission, Room 1-C804, 445 12th Street, SW., Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Jean Ann Collins, Senior Counsel, 
Office of Homeland Security, Enforcement Bureau, at (202) 418-1199. For 
additional information concerning the Paperwork Reduction Act 
information collection requirements contained in this document, send an 
e-mail to <a href="/cdn-cgi/l/email-protection#28787a69684e4b4b064f475e"><span class="__cf_email__" data-cfemail="feaeacbfbe989d9dd0999188">[email protected]</span></a> or contact Judith B. Herman at (202) 418-0214.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Further Notice of Proposed Rulemaking (FNPRM) in EB Docket No. 04-296, 
FCC 05-191, adopted November 3, 2005, and released November 10, 2005. 
The complete text of this document 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

[[Page 71073]]

(202) 863-2898, or via e-mail at www.bcpiweb.com. It is also available 
on the Commission's website at http://www.fcc.gov.
    This document contains proposed information collection 
requirements. The Commission, as part of its continuing effort to 
reduce paperwork burdens, invites the general public and the Office of 
Management and Budget (OMB) to comment on the information collection 
requirements contained in this document, as required by the Paperwork 
Reduction Act of 1995, Public Law 104-13. Public and agency comments 
are due January 24, 2006. Comments should address: (a) Whether the 
proposed collection of information is necessary for the proper 
performance of the functions of the Commission, including whether the 
information shall have practical utility; (b) the accuracy of the 
Commission's burden estimates; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burden of the collection of information on the 
respondents, including the use of automated collection techniques or 
other forms of information technology. In addition, pursuant to the 
Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 
U.S.C. 3506(c)(4), The Commission seeks specific comment on how it 
might ``further reduce the information collection burden for small 
business concerns with fewer than 25 employees.''
    OMB Control Number: 3060-0207.
    Title: Part 11--Emergency Alert System (EAS).
    Form No.: Not applicable.
    Type of Review: Revision of currently approved collection.
    Respondents: Businesses or other for-profit; not-for-profit 
institutions; and/or state, local or tribal governments.
    Estimated Number of Respondents: 22,008.
    Estimated Time Per Response: Range from 0.017-40 hours.
    Frequency of Response: On occasion reporting requirement and 
recordkeeping requirement.
    Estimated Total Annual Burden: 22,100 hours.
    Estimated Total Annual Costs: None.
    Privacy Act Impact Assessment: Not applicable.
    Needs and Uses: As currently approved by OMB and reflected in the 
information above, Part 11 contains rules and regulations providing for 
an emergency alert system. The EAS provides the President with the 
capability to provide immediate communications and information to the 
general public during periods of national emergency. The EAS also 
provides state and local governments, as well as the National Weather 
Service with the capability to provide immediate communications and 
information to the general public concerning emergency situations 
posing a threat to life and property. With the adoption of the FNPRM, 
the Commission seeks comment on what actions the Commission, along with 
its Federal, State and industry partners, should take to help expedite 
the development of a robust, state-of-the-art, digitally based public 
alert and warning system. The Commission also seeks comment on how to 
amend the EAS rules to ensure that EAS messages more effectively reach 
individuals with hearing and vision disabilities, as well as speakers 
of languages other than English.
    In addition to filing comments with the Office of the Secretary, a 
copy of any comments on the Paperwork Reduction Act information 
collection requirements contained herein should be submitted to Judith 
B. Herman, Federal Communications Commission, Room 1-C804, 445 12th 
Street, SW., Washington, DC 20554, or via the Internet to <a href="/cdn-cgi/l/email-protection#266c53424f524e0b64086e43544b47486640454508414950"><span class="__cf_email__" data-cfemail="8cc6f9e8e5f8e4a1cea2c4e9fee1ede2cceaefefa2ebe3fa">[email protected]</span></a>.

Synopsis of the Further Notice of Proposed Rulemaking

    1. Background. In the Notice of Proposed Rulemaking (NPRM) (69 FR 
52843, August 30, 2004), the Commission sought comment on whether the 
EAS in its present form is the most efficient mechanism for warning the 
American public of an emergency and, if not, on how the Emergency Alert 
System (EAS) can be improved. The main objective of the NPRM was to 
seek comment on whether the EAS as currently constituted is the most 
effective and efficient public warning system that best takes advantage 
of appropriate technological advances and best responds to the public's 
need to obtain timely emergency information. The NPRM sought comment on 
the current efficacy of EAS in an age when the communications landscape 
has evolved from what it was when EAS predecessors, and EAS itself, 
were originally conceived.
    2. Introduction. The Commission realizes the immediate objective of 
ensuring that the large and growing segments of the population who rely 
on digital radio and television technologies are not left without 
access to alerts in the event of an emergency. While the current EAS 
performs a critical function, the Commission believes it could be 
improved. In this Further Notice of Proposed Rulemaking (FNPRM), the 
Commission seeks specific comments on what actions the Commission 
should take to help expedite the development of a more comprehensive 
system.
    3. An accurate, wide-reaching public alert and warning system is 
critical to the public's safety and a vital part of the Commission's 
core mission to promote the safety of life and property through a 
robust communications system. Such a system should enable officials at 
the national, state and local levels to reach affected citizens in the 
most effective and efficient manner possible. It should have built-in 
redundancy features and use a variety of communications media so that 
officials can reach large numbers of people simultaneously. In response 
to the NPRM, commenters identified a number of approaches to digital 
alert and warning. The Commission seeks further comment on these 
approaches and asks what the Commission can do to facilitate the 
development of a more effective, comprehensive digital public alert and 
warning system. Specifically, comment is sought on the appropriate role 
for the Commission among the various government and industry entities 
that are involved in the creation of this system. In addition, the 
Commission seeks further comment on how to amend the EAS rules to 
ensure that EAS messages more effectively reach individuals with 
hearing and vision disabilities, and speakers of languages other than 
English.
    4. The comments filed in response to the NPRM reveal a multitude of 
technical approaches to a digital alert and warning system, from 
specific approaches to individual technologies to broad approaches to 
architecture and protocol design. The FNPRM includes a representative 
sample of issues for parties to address. The issues we include are 
representative, and do not constitute an exclusive list. Parties can--
and should--comment on any next generation issues, and should consider 
what role the Commission should play in facilitating choice among these 
options.
    5. It is the Commission's intention in this proceeding to seek 
comment on these and an array of other questions and potential rule 
changes. The Commission has already begun--and will continue throughout 
this proceeding--to coordinate carefully with the Department of 
Homeland Security (DHS), its component, FEMA, and the Department of 
Commerce and its component, the National Oceanic and Atmospheric 
Administration's (NOAA's) National Weather Service (NWS). The 
Commission anticipates

[[Page 71074]]

these federal partners will be active participants in the proceeding. 
In addition to seeking comments from all interested individuals and 
federal entities on the issues raised in this FNPRM, the Commission 
also specifically seeks the participation of state and local emergency 
planning organizations and solicit their views. Finally, the Commission 
seeks input from all telecommunications industries concerned about 
developing a more effective EAS.

Initial Regulatory Flexibility Analysis

    6. With respect to this FNPRM, an Initial Regulatory Flexibility 
Analysis (IRFA) is contained in Appendix A. As required by the 
Regulatory Flexibility Act of 1980, as amended (RFA), the Commission 
has prepared an IRFA of the possible significant economic impact on a 
substantial number of small entities by the policies and rules proposed 
in this FNPRM. 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 as described above. The Commission will 
send a copy of the FNPRM, including this IRFA, to the Chief Counsel for 
Advocacy of the Small Business Administration (SBA).

Need for, and Objectives of, the Proposed Rules

    7. The EAS First Report and Order, which accompanies the FNPRM, is 
the Commission's first step to ensure that digital media is capable of 
receiving and disseminating EAS messages. In the Order, the Commission 
realized the immediate objective of ensuring that the large and growing 
segments of the population who rely on digital radio and television 
technologies are not left without access to alerts in the event of an 
emergency. Although the current EAS performs a critical function, the 
Commission believes it could be improved. An accurate, wide-reaching 
public alert and warning system is critical to the public safety and a 
vital part of the Commission's core mission to promote the safety of 
life and property through a robust communications system. The 
Commission believes that such a system should be technologically up-to-
date, should have built-in redundancy features, and should use a 
variety of communications media to allow officials at the national, 
state and local levels to send messages to reach the greatest number of 
citizens in the affected areas in the most effective and efficient 
manner possible.
    8. Accordingly, the Commission is initiating this FNPRM to seek 
additional comment on what actions the Commission, along with its 
Federal, State and industry partners, should take to help expedite the 
development of a robust, state-of-the-art, digitally based public alert 
and warning system. The Commission also seeks comment on the 
appropriate role for the Commission among the various government and 
industry entities that are involved in the creation of this system. In 
their comments, parties should also comment on the Commission's 
statutory authority to regulate such a system.
    9. The comments filed in response to the NPRM reveal a multitude of 
technical approaches to a digital alert and warning system, from 
specific approaches to individual technologies to broad approaches to 
architecture and protocol design. The Commission does not seek to 
duplicate that significant effort, but rather seeks comment on a 
representative group of issues. The issues on which comment is sought 
do not constitute an exclusive list. Parties can--and should--comment 
on any issues relevant to specific technologies that can aid the 
development of a next-generation alert and warning system.
    10. Specifically, the Commission seeks comment on the appropriate 
role for the Commission in developing system architecture and common 
protocols that could be used for message distribution across different 
platforms. The Commission also asks questions specific to particular 
technologies, such as how DTH and SDARS could deliver local alerts; how 
best to involve wireless providers; and whether traditional wireline 
telephone companies that become content providers should have an 
obligation to provide alerts. To ensure that the American public 
receives public alert and warning in an accurate and timely fashion 
from this next-generation system, the Commission seeks comment whether 
it will need to adopt performance standards and reporting requirements.
    11. The Commission also seeks comment regarding how it may, 
consistent with the EAS First Report and Order, make EAS alerts more 
accessible to people with disabilities. The Commission is committed to 
ensuring that persons with disabilities have equal access to public 
warnings and are considered in emergency preparedness planning. Thus, 
it seeks comment on how any next-generation, digitally based alert and 
warning system can be developed in a manner that assures that persons 
with disabilities will be given equal access to alert and warning as 
other Americans. The Commission also seeks comment on whether there are 
disparities in or conflicts between the EAS rules and the Commission's 
other disability access rules contained in section 79.2, and if so, the 
manner in which such disparities or conflicts could be resolved in 
subsequent rules.
    12. The Commission recognizes the historic and important role of 
states and localities in public safety matters, and the essential role 
of states and localities in public safety matters, and the essential 
role that state and local governments play in delivering alert and 
warning. Accordingly, the Commission seeks comment on how it can best 
work with the states to help implement the EAS rules adopted in the 
Order as well as to develop the next generation of alert and warning 
systems. In particular, the Commission notes that there is a vital 
connection between state and local alert and warning and Federal 
efforts to mitigate disasters. The Commission seeks comment on whether 
its rules should be revised to require that states notify the 
Commission of any changes in EAS participants' state EAS Local Area 
and/or EAS designation (PEP, LP1, LP2, SR, LR, etc.) within thirty days 
of such change, and in the absence of a change, a yearly confirmation 
that all state EAS Local Area and EAS designations remain the same.
    13. On September 22, 2005, the Independent Spanish Broadcasters 
Association, the Office of Communication of the United Church of 
Christ, Inc., and the Minority Media and Telecommunications Council 
filed a Petition for Immediate Relief with the Commission proposing 
changes to the Commission's EAS rules to require stations to air EAS 
messages in other languages in addition to English. The Commission 
seeks comment on the issues raised in the petition and, for that 
purpose, incorporates the petition as well as the other pleadings filed 
in response to the petition into the record of this proceeding. The 
Commission seeks comment on how this proposal would be implemented, and 
seeks comment on any other proposals regarding how to best alert non-
English speakers.

Legal Basis

    14. Authority for the actions proposed in this FNPRM may be found 
in sections 1, 4(i), 4(o), 303(r), 403, 624(g) and 706 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 154(j), 
154(o), 303(r), 544(g) and 606.

[[Page 71075]]

Description and Estimate of the Number of Small Entities to Which Rules 
Will Apply

    15. 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 rules adopted herein. 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) 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).
    16. A small organization is generally ``any not-for-profit 
enterprise which is independently owned and operated and is not 
dominant in its field.'' Nationwide, as of 2002, there were 
approximately 1.6 million small organizations. 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. Nationwide, there are a total of 
approximately 22.4 million small businesses, according to SBA data.
    17. Television Broadcasting. The SBA has developed a small business 
sized standard for television broadcasting, which consists of all such 
firms having $12 million or less in annual receipts. Business concerns 
included in this industry are those ``primarily engaged in broadcasting 
images together with sound.'' According to Commission staff review of 
BIA Publications, Inc. Master Access Television Analyzer Database, as 
of May 16, 2003, about 814 of the 1,220 commercial television stations 
in the United States had revenues of $12 million or less. The 
Commission notes, however, that, in assessing whether a business 
concern qualifies as small under the above definition, business 
(control) affiliations must be included. The Commission's estimate, 
therefore, likely overstates the number of small entities that might be 
affected by its action, because the revenue figure on which it is based 
does not include or aggregate revenues from affiliated companies. There 
are also 2,127 low power television stations (LPTV). Given the nature 
of this service, we will presume that all LPTV licensees qualify as 
small entities under the SBA size standard.
    18. Radio Stations. The proposed rules and policies potentially 
will apply to all AM and commercial FM radio broadcasting licensees and 
potential licensees. The SBA defines a radio broadcasting station that 
has $6 million or less in annual receipts as a small business. A radio 
broadcasting station is an establishment primarily engaged in 
broadcasting aural programs by radio to the public. Included in this 
industry are commercial, religious, educational, and other radio 
stations. Radio broadcasting stations which primarily are engaged in 
radio broadcasting and which produce radio program materials are 
similarly included. However, radio stations that are separate 
establishments and are primarily engaged in producing radio program 
material are classified under another NAICS number. According to 
Commission staff review of BIA Publications, Inc. Master Access Radio 
Analyzer Database on March 31, 2005, about 10,840 (95%) of 11,410 
commercial radio stations have revenue of $6 million or less. The 
Commission notes, however, that many radio stations are affiliated with 
much larger corporations having much higher revenue. The Commission's 
estimate, therefore, likely overstates the number of small entities 
that might be affected by itsr action.
    19. Cable and Other Program Distribution. The SBA has developed a 
small business size standard for cable and other program distribution, 
which consists of all such firms having $12.5 million or less in annual 
receipts. According to Census Bureau data for 1997, in this category 
there was a total of 1,311 firms that 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 to $24,999,999. 
Thus, under this size standard, the majority of firms can be considered 
small. In addition, limited preliminary census data for 2002 indicate 
that the total number of cable and other program distribution companies 
increased approximately 46 percent from 1997 to 2002.
    20. 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 Commission estimates 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 proposed herein.
    21. 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.
    22. Multipoint Distribution Systems. The established rules apply to 
Multipoint Distribution Systems (MDS) operated as part of a wireless 
cable system. The Commission has defined ``small entity'' for purposes 
of the auction of MDS frequencies as an entity that, together with its 
affiliates, has average gross annual revenues that are not more than 
$40 million for the preceding three calendar years. This definition of 
small entity in the context of MDS auctions has been approved by the 
SBA. The Commission completed its MDS auction in March 1996 for 
authorizations in 493 basic trading

[[Page 71076]]

areas. Of 67 winning bidders, 61 qualified as small entities. At this 
time, we estimate that of the 61 small business MDS auction winners, 48 
remain small business licensees.
    23. MDS also includes licensees of stations authorized prior to the 
auction. As noted above, the SBA has developed a definition of small 
entities for pay television services, cable and other subscription 
programming, which includes all such companies generating $12.5 million 
or less in annual receipts. This definition includes MDS and thus 
applies to MDS licensees that did not participate in the MDS auction. 
Information available to us indicates that there are approximately 392 
incumbent MDS licensees that do not generate revenue in excess of $11 
million annually. Therefore, the Commission estimates that there are at 
least 440 (392 pre-auction plus 48 auction licensees) small MDS 
providers as defined by the SBA and the Commission's auction rules 
which may be affected by the rules adopted herein. In addition, limited 
preliminary census data for 2002 indicate that the total number of 
cable and other program distribution companies increased approximately 
46 percent from 1997 to 2002.
    24. Instructional Television Fixed Service. The established rules 
would also apply to Instructional Television Fixed Service facilities 
operated as part of a wireless cable system. The SBA definition of 
small entities for pay television services also appears to apply to 
ITFS. There are presently 2,032 ITFS licensees. All but 100 of these 
licenses are held by educational institutions. Educational institutions 
are included in the definition of a small business. However, we do not 
collect annual revenue data for ITFS licensees, and are not able to 
ascertain how many of the 100 non-educational licensees would be 
categorized as small under the SBA definition. Thus, the Commission 
tentatively concludes that at least 1,932 are small businesses and may 
be affected by the established rules.
    25. Wireless Service Providers. The SBA has developed a small 
business size standard for wireless small businesses within the two 
separate 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. According to Commission data, 
1,012 companies reported that they were engaged in the provision of 
wireless service. Of these 1,012 companies, an estimated 829 have 1,500 
or fewer employees and 183 have more than 1,500 employees. This SBA 
size standard also applies to wireless telephony. Wireless telephony 
includes cellular, personal communications services, and specialized 
mobile radio telephony carriers. According to the data, 437 carriers 
reported that they were engaged in the provision of wireless telephony. 
The Commission has estimated that 260 of these are small businesses 
under the SBA small business size standard.
    26. Broadband Personal Communications Service. The broadband 
personal communications services (PCS) spectrum is divided into six 
frequency blocks designated A through F, and the Commission has held 
auctions for each block. The Commission has created a small business 
size standard for Blocks C and F as an entity that has average gross 
revenues of less than $40 million in the three previous calendar years. 
For Block F, an additional small business size standard 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 small business 
size standards, 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 155 
C, D, E, and F Block licenses; there were 113 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 ``very 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.
    27. Incumbent Local Exchange Carriers (Incumbent LECs). The 
Commission has included small incumbent local exchange carriers in this 
present IRFA 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 LECs are not dominant in their field of operation because any 
such dominance is not ``national'' in scope. The Commission has 
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. 
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 its proposed rules.
    28. Competitive Local Exchange Carriers (Competitive LECs), 
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 its proposed rules.
    29. Satellite Telecommunications and Other Telecommunications. The

[[Page 71077]]

Commission has not developed a small business size standard 
specifically for providers of satellite 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 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 twenty-four firms had 
receipts of $10 million to $24,999,999. Thus, the majority of Satellite 
Telecommunications firms can be considered small.
    30. 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.'' Of this total, 424 firms had annual receipts of $5 
million to $9,999,999 and an additional 6 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.

Description of Projected Reporting, Recordkeeping, and Other Compliance 
Requirements

    31. There are potential reporting or recordkeeping requirements 
proposed in this FNPRM, particularly with regard to state and local EAS 
participation and participation by digital broadcasters. For example, 
the Commission is considering whether to adopt performance standards 
and reporting obligations for EAS participants. The proposals set forth 
in this FNPRM are intended to advance the Commission's public safety 
mission and enhance the performance of the EAS while reducing 
regulatory burdens wherever possible.

Steps Taken To Minimize the Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    32. The RFA requires an agency to describe any significant 
alternatives that it has considered in developing its approach, which 
may include the following four alternatives (among others): ``(1) the 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance and reporting requirements under the rule for such 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 
such small entities.''
    33. The NPRM invited comments on a number of alternatives to the 
imposition of EAS obligations on the digital communications 
technologies. The Commission has considered each of those comments and 
in its Order imposes minimal regulation on small entities to the extent 
consistent with its goal of advancing the Commission's public safety 
mission by adopting rules that expand the reach of EAS. The Commission 
believes that requiring DTV, DAB, digital cable, satellite DTH and 
SDARS providers to install and use EAS equipment will not impose undue 
regulatory or financial burdens.
    34. This FNPRM seeks additional comment to help expedite the 
development of a robust, state-of-the-art, digitally based public alert 
and warning system, and to further minimize the impact on small 
entities. In particular, the Commission seeks comment on how DTH and 
SDARS could deliver local alerts; how best to involve wireless 
providers; and how the Commission can best work with the states to help 
implement the EAS rules adopted in the EAS First Report and Order as 
well as to develop the next generation of alert and warning systems. 
The Commission notes that it sought specific comment concerning 
possible alternatives in its approach toward small entities in the 
context of making EAS accessible to persons with disabilities.

Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    35. None.

Ex Parte Rules

    36. These matters shall be treated as a ``permit-but-disclose'' 
proceeding in accordance with the Commission's ex parte rules. Persons 
making oral ex parte presentations are reminded that memoranda 
summarizing the presentations must contain summaries of the substance 
of the presentations and not merely a listing of the subjects 
discussed. More than a one or two sentence description of the views and 
arguments presented is generally required. Other requirements 
pertaining to oral and written presentations are set forth in Sec.  
1.1206(b) of the Commission's rules.

Ordering Clauses

    37. Accordingly, pursuant to the authority contained in sections 1, 
4(i) and (o), 303(r), 403, 624(g) and 706 of the Communications Act of 
1934, as amended, 47 U.S.C. 151, 154(i), 154(j), 154(o), 303(r), 403, 
544(g), and 606, Notice is Hereby Given of the proposals described in 
the Further Notice of Proposed Rulemaking.
    38. The Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center, shall send a copy of the Further Notice 
of Proposed Rulemaking, including the Initial Regulatory Analysis, to 
the Chief Counsel for Advocacy of the Small Business Administration in 
accordance with the Regulatory Flexibility Act.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 05-23270 Filed 11-23-05; 8:45 am]
BILLING CODE 6712-01-P


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