56494 Federal Register / Vol. 75, No. 179 / Thursday, September 16, 2010 / Proposed Rules 

Congress, through OMB, explanations 

when the Agency decides not to use 

available and applicable voluntary 

consensus standards. 

This proposed rulemaking involves 

technical standards. This proposed rule 

would modify existing design-based 

certification requirements to incorporate 

safe recommended practices, developed 

through industry consensus, for portable 

marine fuel tanks. Specifically, it 

incorporates by reference ABYC H–25, 

‘‘Portable Marine Gasoline Fuel 

Systems,’’ July, 2010. Anyone may 

purchase copies of these materials from 

the American Boat and Yacht Council, 

613 Third Street, Suite 10 Annapolis, 

MD 21403 or http://www.abycinc.org/. 

J. Executive Order 12898: Federal 

Actions to Address Environmental 

Justice in Minority Populations and 

Low-Income Populations 

Executive Order (EO) 12898 (59 FR 

7629 (Feb. 16, 1994)) establishes federal 

executive policy on environmental 

justice. Its main provision directs 

federal agencies, to the greatest extent 

practicable and permitted by law, to 

make environmental justice part of their 

mission by identifying and addressing, 

as appropriate, disproportionately high 

and adverse human health or 

environmental effects of their programs, 

policies, and activities on minority 

populations and low-income 

populations in the United States. 

EPA has determined that this 

proposed rule would not have 

disproportionately high and adverse 

human health or environmental effects 

on minority or low-income populations 

because it increases the level of 

environmental protection for all affected 

populations without having any 

disproportionately high and adverse 

human health or environmental effects 

on any population, including any 

minority or low-income population. 

This proposed rule would merely 

modify existing design-based 

certification requirements to incorporate 

safe recommended practices, developed 

through industry consensus, for portable 

marine fuel tanks. 

K. Statutory Authority 

The statutory authority for this action 

comes from section 213 of the Clean Air 

Act as amended (42 U.S.C. 7547). This 

action is a rulemaking subject to the 

provisions of Clean Air Act section 

307(d). See 42 U.S.C. 7607(d). 

List of Subjects in 40 CFR Part 1060 

Environmental protection, Air 

pollution control, Incorporation by 

reference, Marine spark-ignition engines 

and vessels. 

Dated: September 9, 2010. 

Lisa P. Jackson, 

Administrator. 

[FR Doc. 2010–23127 Filed 9–15–10; 8:45 am] 

BILLING CODE 6560–50–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 54 

[WC Docket No. 05–337, CC Docket No. 

96–45; FCC 10–155] 

High-Cost Universal Service Support 

and Federal-State Joint Board on 

Universal Service 

AGENCY: Federal Communications 

Commission. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: In this document, the Federal 

Communications Commission 

(Commission) undertakes important 

steps for fiscally responsible universal 

service fund reform. The Commission 

seeks comment on permanently 

amending our rules to facilitate efficient 

use of reclaimed excess high-cost 

support. In addition, the Commission 

seeks comment on a proposal to modify 

our rules to reclaim legacy support 

surrendered by a competitive ETC when 

it relinquishes ETC status in a particular 

state. 

DATES: Comments on the proposed rules 

are due on or before October 7, 2010 and 

reply comments are due on or before 

October 21, 2010. If you anticipate that 

you will be submitting comments, but 

find it difficult to do so within the 

period of time allowed by this notice, 

you should advise the contact listed 

below as soon as possible. 

ADDRESSES: You may submit comments, 

identified by WC Docket No. 05–337 

and CC Docket No. 96–45, by any of the 

following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Federal Communications 

Commission’s Web Site: http://fjallfoss.

fcc.gov/ecfs2/. Follow the instructions 

for submitting comments. 

• People with Disabilities: Contact the 

FCC to request reasonable 

accommodations (accessible format 

documents, sign language interpreters, 

CART, etc.) by e-mail: FCC504@fcc.gov 

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. 

FOR FURTHER INFORMATION CONTACT: Ted 

Burmeister, Wireline Competition 

Bureau, Telecommunications Access 

Policy Division, (202) 418–7389 or TTY: 

(202) 418–0484. 

SUPPLEMENTARY INFORMATION: This is a 

synopsis of the Commission’s Notice of 

Proposed Rulemaking in WC Docket No. 

05–337, CC Docket No. 96–45, FCC 

10–155, adopted August 31, 2010, and 

released September 3, 2010. This NPRM 

was also released with a companion 

Final Rule document that is published 

elsewhere in this Federal Register issue. 

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. The 

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 the Internet at 

http://www.bcpiweb.com. It is also 

available on the Commission’s Web site 

at http://www.fcc.gov. 

Pursuant to §§ 1.415 and 1.419 of the 

Commission’s rules, 47 CFR 1.415, 

1.419, interested parties may file 

comments and reply comments on or 

before the dates indicated on the first 

page of this document. 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 website for submitting 

comments. 

• 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. 


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• All hand-delivered or messengerdelivered paper filings for the 

Commission’s Secretary must be 

delivered to FCC Headquarters at 445 

12th St., SW., Room TW–A325, 

Washington, DC 20554. The filing hours 

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. 

In addition, one copy of each 

pleading must be sent to each of the 

following: 

• The Commission’s duplicating 

contractor, Best Copy and Printing, Inc, 

445 12th Street, SW., Room CY–B402, 

Washington, DC 20554; Web site: 

http://www.bcpiweb.com; phone: 1– 

800–378–3160; 

• Theordore Burmeister, 

Telecommunications, 

Telecommunications Access Policy 

Division, Wireline Competition Bureau, 

445 12th Street, SW., Room 5–A5360, 

Washington, DC 20554; e-mail: 

Theodore.Burmeister@fcc.gov; and 

• Charles Tyler, Telecommunications 

Access Policy Division, Wireline 

Competition Bureau, 445 12th Street, 

SW., Room 5–A452, Washington, DC 

20554; e-mail: Charles.Tyler@fcc.gov. 

People with Disabilities: To request 

materials in accessible formats for 

people with disabilities (Braille, large 

print, electronic files, audio format), 

send an e-mail to fcc504@fcc.gov or call 

the Consumer & Governmental Affairs 

Bureau at (202) 418–0530 (voice) or 

(202) 418–0432 (TTY). Contact the FCC 

to request reasonable accommodations 

for filing comments (accessible format 

documents, sign language interpreters, 

CART, etc.) by e-mail: fcc504@fcc.gov; 

phone: (202) 418–0530 or (202) 418– 

0432 (TTY). 

Filings and comments are also 

available for public inspection and 

copying during regular business hours 

at the FCC Reference Information 

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

Room CY–A257, Washington, DC 20554. 

Copies may also be purchased from the 

Commission’s duplicating contractor, 

BCPI, 445 12th Street, SW., Room CY– 

B402, Washington, DC. 20554. 

Customers may contact BCPI through its 

Web site: http://www.bcpiweb.com, by 

e-mail at fcc@bcpiweb.com, by 

telephone at (202) 488–5300 or (800) 

378–3160 (voice), (202) 488–5562 

(TTY), or by facsimile at (202) 488– 

5563. 

1. In the Order and Notice of 

Proposed Rulemaking (NPRM), we 

undertake important steps for fiscally 

responsible universal service fund 

reform. Verizon Wireless and Sprint 

Nextel, in separate transactions in 2008, 

each committed to surrender their highcost universal service support over five 

years, but those commitments have yet 

to be implemented. Corr Wireless 

Communications, LLC (Corr Wireless) 

has asked that any support reclaimed 

from Verizon Wireless and Sprint 

Nextel be redistributed to other 

competitive eligible 

telecommunications carriers (ETCs). 

2. In the NPRM, we seek comment on 

permanently amending our rules to 

facilitate efficient use of reclaimed 

excess high-cost support. In addition, 

we seek comment on a proposal to 

modify our rules to reclaim legacy 

support surrendered by a competitive 

ETC when it relinquishes ETC status in 

a particular state. 

Synopsis of Notice of Proposed 

Rulemaking 

3. In the NPRM, we seek comment on 

modifying our rules to better enable the 

Commission to reclaim certain high-cost 

support, and to use that support to help 

fund broadband universal service 

programs, consistent with the 

recommendations of the National 

Broadband Plan. First, we seek 

comment on amending the interim cap 

rule so that a state’s interim cap amount 

would be adjusted if a competitive ETC 

serving the state relinquishes its ETC 

status. In the Interim Cap Order, the 

Commission capped high-cost support 

for voice service provided to 

competitive ETCs serving each state at 

the level of support such carriers were 

eligible to receive in March 2008, on an 

annualized basis. This cap amount does 

not change even if the number of 

competitive ETCs serving the state 

changes. We propose amending the 

interim cap rule so that, if a competitive 

ETC relinquishes its ETC status in a 

state, the cap amount for that state is 

reduced by the amount of support that 

the competitive ETC was eligible to 

receive in its final month of eligibility, 

annualized. 

4. The goal of the Interim Cap Order 

was to rein in high-cost universal 

service disbursements, and additional 

support would not necessarily result in 

future deployment of expanded service. 

Reducing the total amount of support 

available to competitive ETCs in a state 

when a competitive ETC relinquishes its 

ETC status in that state will not reduce 

support flowing to any individual 

competitive ETC. Reducing the pool of 

support in a state also would enable 

excess funds from the legacy high-cost 

program to be used more effectively to 

advance universal service broadband 

programs, as recommended by the 

National Broadband Plan. We invite 

comment on this proposal. 

5. Second, we seek comment on 

amending § 54.709(b) to permit the 

Commission to provide the Universal 

Service Administrative Company 

(USAC) alternate instructions for 

implementing prior period adjustments. 

In the accompanying order, we adopt an 

interim waiver of § 54.709(b) to enable 

us to direct USAC to reserve reclaimed 

funds as we consider broadband 

universal service reform. Amending the 

rule as proposed would serve this same 

purpose, on a permanent basis. In 

addition, it would enable the 

Commission to provide USAC with 

alternate instructions regarding future 

excess funds in other situations without 

having to adopt a rule waiver. 

6. We seek comment on how to 

develop a streamlined, administratively 

workable process for providing such 

instruction to USAC, if we amended 

§ 54.709(b). We seek comment regarding 

the form that the instructions must take, 

including whether the instructions must 

be provided in an order, public notice, 

or other form. We also seek comment on 

a process by which the Wireline 

Competition Bureau or Office of the 

Managing Director would issue a public 

notice providing instruction to USAC 

that would become effective absent 

action by the Commission within 

fourteen days. We note that, for the 

purpose of calculating the contribution 

factor, the Commission already has the 

authority to set demand and 

administrative expenses at levels other 

than those shown in USAC’s quarterly 

demand projections. The modification 

we propose here would permit the 

Commission, or the Wireline 

Competition Bureau or Office of the 

Managing Director on delegated 

authority, to instruct USAC to modify 

the prior period adjustments in the 

quarterly demand projections. We 

request comment on this proposal. 

Procedural Matters 

Paperwork Reduction Act 

7. This notice of proposed rulemaking 

does not contain new, modified, or 

proposed information collections 

subject to the Paperwork Reduction Act 

of 1995. In addition, therefore, it does 

not contain any new, modified, or 

proposed ‘‘information collection 

burden for small business concerns with 

fewer than 25 employees’’ pursuant to 


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the Small Business Paperwork Relief 

Act of 2002. 

Initial Regulatory Flexibility Analysis 

8. As required by the Regulatory 

Flexibility Act of 1980, as amended, see 

5 U.S.C. 603, the Commission has 

prepared an Initial Regulatory 

Flexibility Analysis (IRFA) for this 

NPRM, of the possible significant 

economic impact on a substantial 

number of small entities by the policies 

and rules proposed in this NPRM. 

Written public comments are requested 

on this IRFA. Comments must be 

identified as responses to the IRFA and 

must be filed by the deadlines for 

comments on the NPRM. The 

Commission will send a copy of the 

NPRM, including this IRFA, to the Chief 

Counsel for Advocacy of the SBA. In 

addition, the NPRM and IRFA (or 

summaries thereof) will be published in 

the Federal Register. 

Need for, and Objectives of, the Notice 

9. In the NPRM, the Commission 

seeks comment on a proposal to modify 

its interim cap on support for 

competitive eligible 

telecommunications carriers (ETCs) so 

that if a competitive ETC relinquishes 

its ETC status, the amount of support it 

receives would be removed from the cap 

amount. The Commission is considering 

this action so that support removed 

from the cap may be reserved as a 

potential down payment on proposed 

broadband universal service reforms as 

recommended by the National 

Broadband Plan, including to index the 

E-rate funding cap to inflation to 

enhance broadband opportunities for 

children, teachers, schools, and 

libraries; support a Mobility Fund to 

provide wireless broadband service in 

areas that lack coverage; improve 

utilization of the Rural Health Care 

program to advance telemedicine in 

rural areas across the country, including 

Tribal lands; and, in the long term, 

directly support broadband Internet 

services for all Americans. 

10. The Commission also seeks 

comment on a proposal to modify its 

rules governing the calculation of the 

universal service fund contribution 

factor. Specifically, we seek comment 

on amending § 54.709(b) to enable the 

Commission to provide USAC with 

alternate direction regarding the 

application of excess contributions from 

prior quarters. The current rule requires 

that excess contributions be applied in 

the next quarter, effectively reducing the 

contribution factor in that quarter. In the 

associated Order, the Commission 

waives the rule on an interim basis and 

directs USAC to reserve reclaimed funds 

as a potential down payment on 

proposed broadband universal service 

reforms. In the NPRM, the Commission 

seeks comment on amending the rule to 

permit it to do so permanently. In 

addition, amending the rule as proposed 

would enable the Commission to 

provide USAC with alternate 

instructions regarding future excess 

funds in other situations without having 

to adopt a rule waiver. 

Legal Basis 

11. This legal basis for any action that 

may be taken pursuant to the NPRM is 

contained in sections 1, 2, 4(i), 4(j), 201– 

205, 214, 220, and 254 of the 

Communications Act of 1934, as 

amended, 47 U.S.C. 151, 152, 154(i), 

154(j), 201–205, 214, 220, and 254 and 

1.411 of the Commission’s rules, 47 CFR 

1.411. 

Description and Estimate of the Number 

of Small Entities to Which the Rules 

Will Apply 

12. 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 and policies, if 

adopted. 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 

SBA. 

13. Small Businesses. Nationwide, 

there are a total of approximately 29.6 

million small businesses, according to 

the SBA. 

14. Small Organizations. Nationwide, 

as of 2002, there are approximately 1.6 

million small organizations. A ‘‘small 

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

owned and operated and is not 

dominant in its field.’’ 

15. Small Governmental Jurisdictions. 

The term ‘‘small governmental 

jurisdiction’’ is defined generally as 

‘‘governments of cities, towns, 

townships, villages, school districts, or 

special districts, with a population of 

less than fifty thousand.’’ Census Bureau 

data for 2002 indicate that there were 

87,525 local governmental jurisdictions 

in the United States. We estimate that, 

of this total, 84,377 entities were ‘‘small 

governmental jurisdictions.’’ Thus, we 

estimate that most governmental 

jurisdictions are small. 

16. 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. 

17. Competitive Local Exchange 

Carriers (‘‘CLECs’’), 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, 1005 

carriers have reported that they are 

engaged in the provision of either 

competitive access provider services or 

competitive local exchange carrier 

services. Of these 1005 carriers, an 

estimated 918 have 1,500 or fewer 

employees and 87 have more than 1,500 

employees. In addition, 16 carriers have 

reported that they are ‘‘Shared-Tenant 

Service Providers,’’ and all 16 are 

estimated to have 1,500 or fewer 

employees. In addition, 89 carriers have 

reported that they are ‘‘Other Local 

Service Providers.’’ Of the 89, all have 

1,500 or fewer employees. 

Consequently, the Commission 

estimates that most providers of 

competitive local exchange service, 

competitive access providers, ‘‘SharedTenant Service Providers,’’ and ‘‘Other 

Local Service Providers’’ are small 

entities that may be affected by our 

action. 

18. Wireless Telecommunications 

Carriers (except Satellite). Since 2007, 

the Census Bureau has placed wireless 

firms within this new, broad, economic 

census category. Prior to that time, such 

firms were within the now-superseded 

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

Other Wireless Telecommunications.’’ 


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Under the present and prior categories, 

the SBA has deemed a wireless business 

to be small if it has 1,500 or fewer 

employees. Because Census Bureau data 

are not yet available for the new 

category, we will estimate small 

business prevalence using the prior 

categories and associated data. For the 

category of Paging, data for 2002 show 

that there were 807 firms that operated 

for the entire year. Of this total, 804 

firms had employment of 999 or fewer 

employees, and three firms had 

employment of 1,000 employees or 

more. For the category of Cellular and 

Other Wireless Telecommunications, 

data for 2002 show that there were 1,397 

firms that operated for the entire year. 

Of this total, 1,378 firms had 

employment of 999 or fewer employees, 

and 19 firms had employment of 1,000 

employees or more. Thus, we estimate 

that the majority of wireless firms are 

small. 

19. 2.3 GHz Wireless Communications 

Services. This service can be used for 

fixed, mobile, radiolocation, and digital 

audio broadcasting satellite uses. The 

Commission defined ‘‘small business’’ 

for the wireless communications 

services (‘‘WCS’’) auction as an entity 

with average gross revenues of 

$40 million for each of the three 

preceding years, and a ‘‘very small 

business’’ as an entity with average gross 

revenues of $15 million for each of the 

three preceding years. The SBA has 

approved these definitions. The 

Commission auctioned geographic area 

licenses in the WCS service. In the 

auction, which was conducted in 1997, 

there were seven bidders that won 31 

licenses that qualified as very small 

business entities, and one bidder that 

won one license that qualified as a small 

business entity. 

20. 1670–1675 MHz Services. An 

auction for one license in the 

1670–1675 MHz band was conducted in 

2003. One license was awarded. The 

winning bidder was not a small entity. 

21. Wireless Telephony. Wireless 

telephony includes cellular, personal 

communications services, and 

specialized mobile radio telephony 

carriers. As noted, the SBA has 

developed a small business size 

standard for Wireless 

Telecommunications Carriers (except 

Satellite). Under the SBA small business 

size standard, a business is small if it 

has 1,500 or fewer employees. 

According to Trends in Telephone 

Service data, 434 carriers reported that 

they were engaged in wireless 

telephony. Of these, an estimated 222 

have 1,500 or fewer employees and 212 

have more than 1,500 employees. We 

have estimated that 222 of these are 

small under the SBA small business size 

standard. 

22. 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. In 1999, 

the Commission reauctioned 155 C, D, 

E, and F Block licenses; there were 113 

small business winning bidders. 

23. In 2001, the Commission 

completed the auction of 422 C and F 

Broadband PCS licenses in Auction 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. In 

2005, the Commission completed an 

auction of 188 C block licenses and 21 

F block licenses in Auction 58. There 

were 24 winning bidders for 217 

licenses. Of the 24 winning bidders, 16 

claimed small business status and won 

156 licenses. In 2007, the Commission 

completed an auction of 33 licenses in 

the A, C, and F Blocks in Auction 71. 

Of the 14 winning bidders, six were 

designated entities. In 2008, the 

Commission completed an auction of 20 

Broadband PCS licenses in the C, D, E 

and F block licenses in Auction 78. 

24. Advanced Wireless Services. In 

2008, the Commission conducted the 

auction of Advanced Wireless Services 

(‘‘AWS’’) licenses. This auction, which 

as designated as Auction 78, offered 35 

licenses in the AWS 1710–1755 MHz 

and 2110–2155 MHz bands (‘‘AWS–1’’). 

The AWS–1 licenses were licenses for 

which there were no winning bids in 

Auction 66. That same year, the 

Commission completed Auction 78. A 

bidder with attributed average annual 

gross revenues that exceeded 

$15 million and did not exceed $40 

million for the preceding three years 

(‘‘small business’’) received a 15 percent 

discount on its winning bid. A bidder 

with attributed average annual gross 

revenues that did not exceed 

$15 million for the preceding three years 

(‘‘very small business’’) received a 25 

percent discount on its winning bid. A 

bidder that had combined total assets of 

less than $500 million and combined 

gross revenues of less than $125 million 

in each of the last two years qualified 

for entrepreneur status. Four winning 

bidders that identified themselves as 

very small businesses won 17 licenses. 

Three of the winning bidders that 

identified themselves as a small 

business won five licenses. 

Additionally, one other winning bidder 

that qualified for entrepreneur status 

won 2 licenses. 

25. 700 MHz Band Licenses. The 

Commission previously adopted criteria 

for defining three groups of small 

businesses for purposes of determining 

their eligibility for special provisions 

such as bidding credits. The 

Commission defined a ‘‘small business’’ 

as an entity that, together with its 

affiliates and controlling principals, has 

average gross revenues not exceeding 

$40 million for the preceding three 

years. A ‘‘very small business’’ is defined 

as an entity that, together with its 

affiliates and controlling principals, has 

average gross revenues that are not more 

than $15 million for the preceding three 

years. Additionally, the lower 700 MHz 

Service had a third category of small 

business status for Metropolitan/Rural 

Service Area (‘‘MSA/RSA’’) licenses. The 

third category is ‘‘entrepreneur,’’ which 

is defined as an entity that, together 

with its affiliates and controlling 

principals, has average gross revenues 

that are not more than $3 million for the 

preceding three years. The SBA 

approved these small size standards. 

The Commission conducted an auction 

in 2002 of 740 licenses (one license in 

each of the 734 MSAs/RSAs and one 

license in each of the six Economic Area 

Groupings (EAGs)). Of the 740 licenses 

available for auction, 484 licenses were 

sold to 102 winning bidders. Seventytwo of the winning bidders claimed 

small business, very small business or 

entrepreneur status and won a total of 

329 licenses. The Commission 

conducted a second auction in 2003 that 

included 256 licenses: 5 EAG licenses 

and 476 Cellular Market Area licenses. 

Seventeen winning bidders claimed 


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small or very small business status and 

won 60 licenses, and nine winning 

bidders claimed entrepreneur status and 

won 154 licenses. In 2005, the 

Commission completed an auction of 5 

licenses in the lower 700 MHz band 

(Auction 60). There were three winning 

bidders for five licenses. All three 

winning bidders claimed small business 

status. 

26. In 2007, the Commission adopted 

the 700 MHz Second Report and Order. 

The Order revised the band plan for the 

commercial (including Guard Band) and 

public safety spectrum, adopted services 

rules, including stringent build-out 

requirements, an open platform 

requirement on the C Block, and a 

requirement on the D Block licensee to 

construct and operate a nationwide, 

interoperable wireless broadband 

network for public safety users. In 2008, 

the Commission commenced Auction 73 

which offered all available, commercial 

700 MHz Band licenses (1,099 licenses) 

for bidding using the Commission’s 

standard simultaneous multiple-round 

(‘‘SMR’’) auction format for the A, B, D, 

and E block licenses and an SMR 

auction design with hierarchical 

package bidding (‘‘HPB’’) for the C Block 

licenses. Later in 2008, the Commission 

concluded Auction 73. A bidder with 

attributed average annual gross revenues 

that did not exceed $15 million for the 

preceding three years (very small 

business) qualified for a 25 percent 

discount on its winning bids. A bidder 

with attributed average annual gross 

revenues that exceeded $15 million, but 

did not exceed $40 million for the 

preceding three years, qualified for a 15 

percent discount on its winning bids. 

There were 36 winning bidders (who 

won 330 of the 1,090 licenses won) that 

identified themselves as very small 

businesses. There were 20 winning 

bidders that identified themselves as a 

small business that won 49 of the 1,090 

licenses won. The provisionally 

winning bids for the A, B, C, and E 

Block licenses exceeded the aggregate 

reserve prices for those blocks. 

However, the provisionally winning bid 

for the D Block license did not meet the 

applicable reserve price and thus did 

not become a winning bid. 

27. 700 MHz Guard Band Licenses. In 

the 700 MHz Guard Band Order, the 

Commission adopted size standards 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 in this 

service is an entity that, together with 

its affiliates and controlling principals, 

has average gross revenues not 

exceeding $40 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 $15 million for the preceding 

three years. SBA approval of these 

definitions is not required. In 2000, the 

Commission conducted an auction of 52 

Major Economic Area (‘‘MEA’’) licenses. 

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 and closed in 

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. 

28. Specialized Mobile Radio. The 

Commission awards ‘‘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. The Commission awards ‘‘very 

small entity’’ bidding credits to firms 

that had revenues of no more than $3 

million in each of the three previous 

calendar years. The SBA has approved 

these small business size standards for 

the 900 MHz Service. The Commission 

has held auctions for geographic area 

licenses in the 800 MHz and 900 MHz 

bands. The 900 MHz SMR auction was 

completed in 1996. Sixty bidders 

claiming that they qualified as small 

businesses under the $15 million size 

standard won 263 geographic area 

licenses in the 900 MHz SMR band. The 

800 MHz SMR auction for the upper 200 

channels was conducted in 1997. Ten 

bidders claiming that they qualified as 

small businesses under the $15 million 

size standard won 38 geographic area 

licenses for the upper 200 channels in 

the 800 MHz SMR band. A second 

auction for the 800 MHz band was 

conducted in 2002 and included 23 BEA 

licenses. One bidder claiming small 

business status won five licenses. The 

auction of the 1,053 800 MHz SMR 

geographic area licenses for the General 

Category channels was conducted in 

2000. Eleven bidders won 108 

geographic area licenses for the General 

Category channels in the 800 MHz SMR 

band qualified as small businesses 

under the $15 million size standard. In 

an auction completed in 2000, a total of 

2,800 Economic Area licenses in the 

lower 80 channels of the 800 MHz SMR 

service were awarded. Of the 22 

winning bidders, 19 claimed small 

business status and won 129 licenses. 

Thus, combining all three auctions, 40 

winning bidders for geographic licenses 

in the 800 MHz SMR band claimed 

status as small business. 

29. In addition, there are numerous 

incumbent site-by-site SMR licensees 

and licensees with extended 

implementation authorizations in the 

800 and 900 MHz bands. We do not 

know how many firms provide 800 MHz 

or 900 MHz geographic area SMR 

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. In 

addition, we do not know how many of 

these firms have 1500 or fewer 

employees. We assume, for purposes of 

this analysis, that all of the remaining 

existing extended implementation 

authorizations are held by small 

entities, as that small business size 

standard is approved by the SBA. 

30. Cellular Radiotelephone Service. 

Auction 77 was held to resolve one 

group of mutually exclusive 

applications for Cellular Radiotelephone 

Service licenses for unserved areas in 

New Mexico. Bidding credits for 

designated entities were not available in 

Auction 77. In 2008, the Commission 

completed the closed auction of one 

unserved service area in the Cellular 

Radiotelephone Service, designated as 

Auction 77. Auction 77 concluded with 

one provisionally winning bid for the 

unserved area totaling $25,002. 

31. Private Land Mobile Radio 

(‘‘PLMR’’). PLMR systems serve an 

essential role in a range of industrial, 

business, land transportation, and 

public safety activities. These radios are 

used by companies of all sizes operating 

in all U.S. business categories, and are 

often used in support of the licensee’s 

primary (non-telecommunications) 

business operations. For the purpose of 

determining whether a licensee of a 

PLMR system is a small business as 

defined by the SBA, we use the broad 

census category, Wireless 

Telecommunications Carriers (except 

Satellite). This definition provides that 

a small entity is any such entity 

employing no more than 1,500 persons. 

The Commission does not require PLMR 

licensees to disclose information about 

number of employees, so the 

Commission does not have information 

that could be used to determine how 

many PLMR licensees constitute small 

entities under this definition. We note 

that PLMR licensees generally use the 

licensed facilities in support of other 

business activities, and therefore, it 

would also be helpful to assess PLMR 

licensees under the standards applied to 

the particular industry subsector to 

which the licensee belongs. 


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Federal Register / Vol. 75, No. 179 / Thursday, September 16, 2010 / Proposed Rules 56499 

32. As of March 2010, there were 

424,162 PLMR licensees operating 

921,909 transmitters in the PLMR bands 

below 512 MHz. We note that any entity 

engaged in a commercial activity is 

eligible to hold a PLMR license, and that 

any revised rules in this context could 

therefore potentially impact small 

entities covering a great variety of 

industries. 

33. 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’’). In the present context, we 

will use the SBA’s small business size 

standard applicable to Wireless 

Telecommunications Carriers (except 

Satellite), 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 proposed herein. 

34. 1.4 GHz Band Licensees. The 

Commission conducted an auction of 64 

1.4 GHz band licenses in 2007. In that 

auction, the Commission defined ‘‘small 

business’’ as an entity that, together with 

its affiliates and controlling interests, 

had average gross revenues that exceed 

$15 million but do not exceed $40 

million for the preceding three years, 

and a ‘‘very small business’’ as an entity 

that, together with its affiliates and 

controlling interests, has had average 

annual gross revenues not exceeding 

$15 million for the preceding three 

years. Neither of the two winning 

bidders sought such designated entity 

status. 

Description of Projected Reporting, 

Recordkeeping and Other Compliance 

Requirements 

35. The NPRM does not propose any 

reporting, recordkeeping, or other 

compliance requirements. 

Steps Taken To Minimize Significant 

Economic Impact on Small Entities, and 

Significant Alternatives Considered 

36. The RFA requires an agency to 

describe any significant alternatives that 

it has considered in reaching 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 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. 

37. The NPRM proposes reducing the 

size of the interim cap on competitive 

ETC support when any competitive ETC 

relinquishes its ETC designation. Under 

certain circumstances, this may have a 

significant economic impact on other 

competitive ETCs that are small entities. 

For example, as described in footnote 31 

of the Order, the reduction in size of a 

state interim cap amount could 

negatively affect a competitive ETC that 

is a small entity if another competitive 

ETC is later designated and receives a 

share of the smaller interim cap amount. 

While the designation of another 

competitive ETC would have an impact 

on the support received by the small 

entity even without the adoption of the 

proposed rule, the proposed rule could 

magnify that impact. The Commission is 

seeking comment on this rule, in part to 

consider its necessity and any 

alternatives. Because, however, the 

purpose of the proposed rule is to 

reduce the amount of high-cost 

universal service support received by 

competitive ETCs, it is not likely that a 

significant alternative could be chosen 

that would minimize the effect of the 

proposed rule if it is, in fact, adopted. 

38. The NPRM also seeks comment on 

a proposed rule that would give the 

Commission the ability to provide the 

universal service administrator alternate 

instructions with regard to the use of 

extra or unused funds. The current rules 

require that the administrator use such 

funds to reduce the need for universal 

service contributions in the next 

quarter. The proposed rule would 

permit the Commission to instruct the 

administrator to reserve the funds for 

later use. Because the later use of the 

funds would also require universal 

service contributions, the overall effect 

of this proposed rule would be to shift 

the time of the contributions’ collection, 

not to change the long-term amount 

contributed. Accordingly, we do not 

believe there is a significant economic 

impact, on small entities or otherwise, 

associated with this proposed rule. 

Federal Rules That May Duplicate, 

Overlap, or Conflict With the Proposed 

Rules 

39. None. 

Ex Parte Presentations 

40. This proceeding 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 § 1.1206(b) of the Commission’s 

rules. 

Comment Filing Procedures 

41. Pursuant to §§ 1.415 and 1.419 of 

the Commission’s rules, interested 

parties may file comments and reply 

comments on or before the dates 

indicated on the first page of this 

document. 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. 

• 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, if multiple docket 

or rulemaking numbers appear in the 

caption of this proceeding, filers must 

transmit one electronic copy of the 

comments for each docket or 

rulemaking number referenced in the 

caption. In completing the transmittal 

screen, filers should include their full 

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. 


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56500 Federal Register / Vol. 75, No. 179 / Thursday, September 16, 2010 / Proposed Rules 

• All hand-delivered or messengerdelivered paper filings for the 

Commission’s Secretary must be 

delivered to FCC Headquarters at 445 

12th St., SW., Room TW–A325, 

Washington, DC 20554. The filing hours 

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. 

42. In addition, one copy of each 

pleading must be sent to the 

Commission’s duplicating contractor, 

Best Copy and Printing, Inc, 445 12th 

Street, SW., Room CY–B402, 

Washington, DC 20554; website: 

www.bcpiweb.com; phone: 1–800–378– 

3160. Furthermore, three copies of each 

pleading must be sent to Charles Tyler, 

Telecommunications Access Policy 

Division, Wireline Competition Bureau, 

445 12th Street, SW., Room 5–A452, 

Washington, DC 20554; e-mail: 

Charles.Tyler@fcc.gov. 

43. Filings and comments are also 

available for public inspection and 

copying during regular business hours 

at the FCC Reference Information 

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

Room CY–A257, Washington, DC, 

20554. Copies may also be purchased 

from the Commission’s duplicating 

contractor, BCPI, 445 12th Street, SW., 

Room CY–B402, Washington, DC 20554. 

Customers may contact BCPI through its 

website: www.bcpiweb.com, by e-mail 

at fcc@bcpiweb.com, by telephone at 

(202) 488–5300 or (800) 378–3160 

(voice), (202) 488–5562 (tty), or by 

facsimile at (202) 488–5563. 

44. To request materials in accessible 

formats for people with disabilities 

(Braille, large print, electronic files, 

audio format), send an e-mail to 

fcc504@fcc.gov or call the Consumer & 

Governmental Affairs Bureau at (202) 

418–0530 (voice) or (202) 418–0432 

(TTY). Contact the FCC to request 

reasonable accommodations for filing 

comments (accessible format 

documents, sign language interpreters, 

CART, etc.) by e-mail: FCC504@fcc.gov; 

phone: (202) 418–0530 or TTY: (202) 

418–0432. 

45. For further information regarding 

this proceeding, contact Ted Burmeister, 

Attorney Advisor, Telecommunications 

Access Policy Division, Wireline 

Competition Bureau at (202) 418–7389, 

or Theodore.Burmeister@fcc.gov. 

List of Subjects in 47 CFR Part 54 

Communications common carriers, 

Health facilities, Infants and children, 

Libraries, Reporting and recordkeeping 

requirements, Schools, 

Telecommunications, Telephone. 

Federal Communications Commission. 

Marlene H. Dortch, 

Secretary. 

Proposed Rules 

For the reasons discussed in the 

preamble, the Federal Communications 

Commission proposes to amend 47 CFR 

part 54 as follows: 

PART 54—UNIVERSAL SERVICE 

1. The authority citation for part 54 

continues to read as follows: 

Authority: 47 U.S.C. 151, 154(i), 201, 205, 

214, and 254 unless otherwise noted. 

2. Section 54.709 is amended by 

revising paragraph (b) to read as follows: 

§ 54.709 Computations of required 

contributions to universal service support 

mechanisms. 

* * * * * 

(b) If the contributions received by the 

Administrator in a quarter exceed the 

amount of universal service support 

program contributions and 

administrative costs for that quarter, the 

excess payments will be carried forward 

to the following quarter, unless 

otherwise instructed by the 

Commission. The contribution factors 

for the following quarter will take into 

consideration the projected costs of the 

support mechanisms for that quarter 

and the excess contributions carried 

over from the previous quarter. 

* * * * * 

[FR Doc. 2010–23162 Filed 9–15–10; 8:45 am] 

BILLING CODE 6712–01–P 


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