Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 31667 

Since the adoption of § 535.308 in 

1987, relatively few agreements have 

been filed claiming the waiting period 

exemption. As the number of filings 

claiming the exemption has been 

negligible, repeal of the section will 

have minimal impact on the shipping 

industry. Moreover, where agreement 

parties experience exigent 

circumstances justifying early 

effectiveness, the Shipping Act and the 

Commission regulations allow the 

parties to seek expedited review. See 46 

U.S.C. 40304(e) and 46 CFR 535.605. 

Even with respect to the three 

agreements that claimed application of 

the section 535.308 exemption (FMC 

Agreement Nos. 201176, 201196 and 

201199), it remains subject to some 

dispute whether those agreements were 

in fact qualified for the exemption. It 

appears that the agreements may be 

ineligible for the waiting period 

exemption, or could more appropriately 

be characterized as a marine terminal 

services agreement subject to an existing 

exemption at § 535.309 or a marine 

terminal facilities agreement subject to 

an exemption at § 535.310. These 

provisions exempt marine terminal 

services agreements and marine 

terminal facilities agreements from both 

the filing and waiting period 

requirements of the Shipping Act. 46 

CFR 535.309 and 535.310. 

To be conferred antitrust immunity, 

the parties may file such marine 

terminal services agreements pursuant 

to § 535.301(b) as an ‘‘optional filing.’’ 

Repeal of § 535.308 thus may benefit the 

industry by clarifying and streamlining 

the application of the Commission’s 

regulations and by directing the 

industry to utilize the exemptions 

available under § 535.309 or § 535.310. 

I. The Proposed Rulemaking 

In view of the foregoing reasons, the 

Commission proposes to make the 

following changes to 46 CFR Part 535. 

First, the Commission proposes to 

repeal 46 CFR 535.308 by removing it 

from the CFR. 

Second, the Commission proposes to 

amend 46 CFR 535.309(b)(1) to add the 

definition of marine terminal conference 

agreement, which is currently defined 

in 46 CFR 535.308. 

Third, the Commission proposes to 

correct a typographical error in 46 CFR 

535.604(b). 

II. Statutory Review and Requests for 

Comment 

In accordance with the Regulatory 

Flexibility Act, 5 U.S.C. 601–612, the 

Chairman of the Federal Maritime 

Commission certifies that the proposed 

rule, if promulgated, would not have a 

significant economic impact on a 

substantial number of small entities. 

The regulated entities that would be 

affected by the rule are limited to 

marine terminal operators and ocean 

common carriers. Pursuant to the 

guidelines of the Small Business 

Administration, the Commission has 

determined that these entities do not 

qualify as small for the purpose of the 

Small Business Regulatory Enforcement 

Fairness Act. The rule would simply 

require that agreements between marine 

terminal operators, or between or among 

marine terminal operators and ocean 

common carriers, be made subject to the 

requirements of section 6 of the 

Shipping Act of 1984, 46 U.S.C. 40304, 

and Commission agreement rules, 46 

CFR Part 535. 

This regulatory action is not a ‘‘major 

rule’’ under 5 U.S.C. 804(2). 

List of Subjects in 46 CFR Part 535 

Ocean Common Carrier and Marine 

Terminal Operator Agreements Subject 

to the Shipping Act of 1984. 

For the reasons set forth above, the 

Federal Maritime Commission proposes 

to amend 46 CFR Part 535 Subpart C as 

follows: 

PART 535—OCEAN COMMON 

CARRIER AND MARINE TERMINAL 

OPERATOR AGREEMENTS SUBJECT 

TO THE SHIPPING ACT OF 1984 

1. The authority citation for Part 535 

continues to read as follows: 

Authority: 5 U.S.C. 553; 46 U.S.C. 1701– 

1707, 1709–1710, 1712 and 1714–1718; 

Public Law 105–258, 112 Stat. 1902 (46 

U.S.C. 1701 note); Sec. 424, Public Law 105– 

383, 112 Stat. 3440. 

Subpart C—Exemptions 

§ 535.308 [Removed] 

2. Remove § 535.308. 

3. Amend § 535.309 by revising 

paragraph (b)(1) to read as follows: 

§ 535.309 Marine terminal services 

agreements—exemption. 

* * * * * 

(b) * * * 

(1) They do not include rates, charges, 

rules, and regulations that are 

determined through a marine terminal 

conference agreement. Marine terminal 

conference agreement means an 

agreement between or among two or 

more marine terminal operators and/or 

ocean common carriers for the conduct 

or facilitation of marine terminal 

operations that provides for the fixing of 

and adherence to uniform maritime 

terminal rates, charges, practices and 

conditions of service relating to the 

receipt, handling, and/or delivery of 

passengers or cargo for all members; and 

* * * * * 

§ 535.604 [Amended] 

4. Amend § 535.604 by removing the 

word ‘‘latter’’ and adding in its place the 

word ‘‘later’’ in paragraph (b). 

By the Commission. 

Karen V. Gregory, 

Secretary. 

[FR Doc. E9–15605 Filed 7–1–09; 8:45 am] 

BILLING CODE 6730–01–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 52 

[WC Docket No. 07–244; CC Docket No. 95– 

116; FCC 09–41] 

Local Number Portability Porting 

Interval and Validation Requirements; 

Telephone Number Portability 

AGENCY: Federal Communications 

Commission. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Federal Communications 

Commission (Commission) adopted a 

Further Notice of Proposed Rulemaking 

(60 FR 39136, August 1, 1995) seeking 

comment on what further steps the 

Commission should take, if any, to 

improve the process of changing 

telecommunications providers and 

discussing any new ideas that reflect 

and build upon the new one-businessday interval for simple ports. 

DATES: Comments are due on or before 

August 3, 2009, and reply comments are 

due on or before August 31, 2009. 

ADDRESSES: You may submit comments, 

identified by WC Docket No. 07–244 

and CC Docket No. 95–116, 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:// 

www.fcc.gov/cgb/ecfs/. Follow the 

instructions for submitting comments. 

• 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. 

Include the docket number(s) in the 

subject line of the message. 

• Mail: Secretary, Federal 

Communications Commission, 445 12th 

Street, SW., Washington, DC 20554. 

• Hand Delivery/Courier: 236 

Massachusetts Avenue, NE., Suite 110, 

Washington, DC 20002. 

• People with Disabilities: Contact the 

FCC to request reasonable 

31668 Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 

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. 

All submissions received must 

include the agency name and docket 

numbers for this rulemaking, WC 

Docket No. 07–244 and CC Docket No. 

95–116. All comments received will be 

posted without change to http:// 

www.fcc.gov/cgb/ecfs. 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: 

Michelle Sclater, Wireline Competition 

Bureau, (202) 418–0388. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s Further 

Notice of Proposed Rulemaking 

(FNPRM) in WC Docket No. 07–244 and 

CC Docket No. 95–116, FCC 09–41, 

adopted May 13, 2009 and released May 

13, 2009. 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 

(202) 863–2898, or via e-mail at http:// 

www.bcpiweb.com. It is also available 

on the Commission’s Web site at 

http://www.fcc.gov. 

Public Participation 

Pursuant to Sections 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. All filings 

related to this Further Notice of 

Proposed Rulemaking should refer to 

WC Docket No. 07–244 and CC Docket 

No. 95–116. 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 

(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, 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. 

• 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 must be 

addressed to 445 12th Street, SW., 

Washington, DC 20554. 

Parties should send a copy of their 

filings to the Competition Policy 

Division, Wireline Competition Bureau, 

Federal Communications Commission, 

Room 5–C140, 445 12th Street, SW., 

Washington, DC 20554, or by e-mail to 

cpdcopies@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. 

Documents in WC Docket No. 07–244 

and CC Docket No. 95–116 will be 

available for public inspection and 

copying during business hours at the 

FCC Reference Information Center, 

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

CY–A257, Washington, DC 20554. The 

documents may also be purchased from 

BCPI, telephone (202) 488–5300, 

facsimile (202) 488–5563, TTY (202) 

488–5562, e-mail fcc@bcpiweb.com. 

Synopsis of Notice of Proposed 

Rulemaking 

Through this FNPRM, the 

Commission seeks comment on what 

further steps, if any, it should take to 

improve the process of changing 

telecommunications providers and 

discuss any new ideas that reflect and 

build upon the new one business day 

interval. The Commission asks parties to 

address whether there are additional 

ways to streamline the number porting 

processes or improve efficiencies for 

simple and non-simple ports. For 

example, should the Commission 

modify the definition of simple ports? 

Are different or additional information 

fields necessary for completing simple 

ports? Is it appropriate to standardize 

Local Service Request forms and, if so, 

how should that be accomplished? Is a 

single standard time interval in which 

providers must return Customer Service 

Record requests appropriate? Finally, 

what are the benefits and burdens, 

especially the burdens on small entities, 

of adopting any new rules regarding the 

porting process? 

Initial Regulatory Flexibility Analysis 

1. 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 

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 on the FNPRM provided 

above. The Commission will send a 

copy of the FNPRM, including this 

IRFA, to the Chief Counsel for Advocacy 

of the Small Business Administration. 

In addition, the FNPRM and the IRFA 

(or summaries thereof) will be 

published in the Federal Register. 

A. Need for, and Objective of, the 

Proposed Rules 

2. The Commission now requires 

providers subject to its local number 

portability rules to complete simple 

Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 31669 

wireline-to-wireline and simple 

intermodal ports within one business 

day. The Commission believes that a 

one-business day porting interval is a 

much needed improvement over the 

previous four-business day interval— 

one that will provide considerable 

immediate benefits to consumers. It is 

important, however, that the 

Commission remains vigilant in its 

efforts to improve the effectiveness and 

efficiency of the porting process as 

technological and market developments 

demand. Therefore, and in light of the 

actions recently taken, the Commission 

asks commenters to refresh the record 

on what further steps it should take, if 

any, to improve the process of changing 

telecommunications providers and 

discuss any new ideas that reflect and 

build upon the new one-business day 

interval. The Commission asks parties to 

address whether there are additional 

ways to streamline the number porting 

processes or improve efficiencies for 

simple and non-simple ports. For 

example, should the Commission 

modify the definition of a simple port? 

Are different or additional information 

fields are necessary for completing 

simple ports? Is it appropriate to 

standardize Local Service Request forms 

and, if so, how that could should that 

be accomplished? Is a single standard 

time interval in which providers must 

return Customer Service Record 

requests appropriate? Finally, what are 

the benefits and burdens, especially the 

burdens on small entities, of adopting 

any new rules regarding the porting 

process? 

B. Legal Basis 

3. The legal basis for any action that 

may be taken pursuant to this FNPRM 

is contained in Sections 1, 4(i), 4(j), 251, 

and 303(r) of the Communications Act 

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

154(i)–(j), 251, 303(r). 

C. Description and Estimate of the 

Number of Small Entities to Which the 

Proposed Rules Will Apply 

4. 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) Is 

independently owned and operated; (2) 

is not dominant in its field of operation; 

and (3) satisfies any additional criteria 

established by the SBA. 

5. Small Businesses. Nationwide, 

there are a total of approximately 22.4 

million small businesses according to 

SBA data. 

6. Small Organizations. Nationwide, 

there are approximately 1.6 million 

small organizations. 

1. Wireline Carriers and Service 

Providers 

7. The Commission has included 

small incumbent local exchange carriers 

(LECs) 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 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 

LECs in this RFA analysis, although it 

emphasizes that this RFA action has no 

effect on Commission analyses and 

determinations in other, non-RFA 

contexts. 

8. Incumbent LECs. Neither the 

Commission nor the SBA has developed 

a small business size standard 

specifically for incumbent LECs. 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. 

9. Competitive LECs, Competitive 

Access Providers (CAPs), ‘‘SharedTenant 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, 859 

carriers have reported that they are 

engaged in the provision of either 

competitive access provider services or 

competitive LEC services. Of these 859 

carriers, an estimated 741 have 1,500 or 

fewer employees and 118 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, 44 

carriers have reported that they are 

‘‘Other Local Service Providers.’’ Of the 

44, an estimated 43 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. 

10. 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, 330 carriers have 

reported that they are engaged in the 

provision of interexchange service. Of 

these, an estimated 309 have 1,500 or 

fewer employees and 21 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. 

11. 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, 184 

carriers have reported that they are 

engaged in the provision of local resale 

services. Of these, an estimated 181 

have 1,500 or fewer employees and 

three 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. 

12. 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, 881 

carriers have reported that they are 

engaged in the provision of toll resale 

services. Of these, an estimated 853 

have 1,500 or fewer employees and 28 

have more than 1,500 employees. 

Consequently, the Commission 

estimates that the majority of toll 

31670 Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 

resellers are small entities that may be 

affected by our action. 

13. 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 22 have 1,500 or fewer 

employees and one has more than 1,500 

employees. Consequently, the 

Commission estimates that the majority 

of OSPs are small entities that may be 

affected by our action. 

14. 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, 104 carriers have reported that 

they are engaged in the provision of 

prepaid calling cards. Of these, 102 are 

estimated to have 1,500 or fewer 

employees and two have 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. 

15. 800 and 800–Like Service 

Subscribers. These toll-free services fall 

within the broad economic census 

category of Telecommunications 

Resellers. This category ‘‘comprises 

establishments engaged in purchasing 

access and network capacity from 

owners and operators of 

telecommunications networks and 

reselling wired and wireless 

telecommunications services (except 

satellite) to businesses and households. 

Establishments in this industry resell 

telecommunications; they do not 

operate transmission facilities and 

infrastructure.’’ The SBA has developed 

a small business size standard for this 

category, which is: all such firms having 

1,500 or fewer employees. Census 

Bureau data for 2002 show that there 

were 1,646 firms in this category that 

operated for the entire year. Of this 

total, 1,642 firms had employment of 

999 or fewer employees, and four firms 

had employment of 1,000 employees or 

more. Thus, the majority of these firms 

can be considered small. Additionally, 

it may be helpful to know the total 

numbers of telephone numbers assigned 

in these services. Commission data 

show that, as of June 2006, the total 

number of 800 numbers assigned was 

7,647,941, the total number of 888 

numbers assigned was 5,318,667, the 

total number of 877 numbers assigned 

was 4,431,162, and the total number of 

866 numbers assigned was 6,008,976. 

a. International Service Providers 

16. The first category, Satellite 

Telecommunications, ‘‘comprises 

establishments primarily engaged in 

providing point-to-point 

telecommunications services to other 

establishments in the 

telecommunications and broadcasting 

industries by forwarding and receiving 

communications signals via a system of 

satellites or reselling satellite 

telecommunications.’’ The size standard 

for this industry is $15.0 million; the 

NACIS code is 517410. For this 

category, Census Bureau data for 2002 

show that there were a total of 371 firms 

that operated for the entire year. Of this 

total, 307 firms had annual receipts of 

under $10 million, and 26 firms had 

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

Consequently, the Commission 

estimates that the majority of Satellite 

Telecommunications firms are small 

entities that might be affected by our 

action. 

17. The second category of Other 

Telecommunications ‘‘comprises 

establishments primarily engaged in (1) 

providing specialized 

telecommunications applications, such 

as satellite tracking, communications 

telemetry, and radar station operations; 

or (2) 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.’’ The size standard for this 

category is $25.0 million and the NAICS 

code is 517919. For this category, 

Census Bureau data for 2002 show that 

there were a total of 332 firms that 

operated for the entire year. Of this 

total, 274 firms had annual receipts of 

under $24,999,999. Consequently, the 

Commission estimates that the majority 

of Other Telecommunications firms are 

small entities that might be affected by 

our action. 

2. Wireless Telecommunications Service 

Providers 

18. Below, for those services subject 

to auctions, the Commission notes 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. 

19. 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 2002 

show that there were 807 firms in this 

category 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. Thus, under 

this category and associated small 

business size standard, the majority of 

firms can be considered small. For the 

census category of Cellular and Other 

Wireless Telecommunications, Census 

Bureau data for 2002 show that there 

were 1,397 firms in this category 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, under this second category 

and size standard, the majority of firms 

can, again, be considered small. The 

Commission notes that that the 

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

Other Wireless Telecommunications’’ 

are now obsolete, and have been 

replaced with a new category, ‘‘Wireless 

Telecommunications Carriers (except 

Satellite).’’ Under this new category, a 

wireless business is small if it has 1,500 

or few employees. 

20. Wireless Telephony. Wireless 

telephony includes cellular, personal 

communications services (PCS), and 

specialized mobile radio (SMR) 

telephony carriers. As noted above, the 

SBA has developed a small business 

size standard for ‘‘Wireless 

Telecommunications Carriers (except 

Satellite).’’ Under that SBA small 

business size standard, a business is 

small if it has 1,500 or fewer employees. 

According to Commission data, 432 

carriers reported that they were engaged 

in the provision of wireless telephony. 

The Commission has estimated that 221 

of these are small under the SBA small 

business size standard. 

21. 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 

Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 31671 

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 ‘‘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. 

22. Narrowband Personal 

Communications Services. The 

Commission held an auction for 

Narrowband PCS licenses that 

commenced on July 25, 1994, and 

closed on July 29, 1994. A second 

auction commenced on October 26, 

1994 and closed on November 8, 1994. 

For purposes of the first two 

Narrowband PCS auctions, ‘‘small 

businesses’’ were entities with average 

gross revenues for the prior three 

calendar years of $40 million or less. 

Through these auctions, the 

Commission awarded a total of 41 

licenses, 11 of which were obtained by 

four small businesses. To ensure 

meaningful participation by small 

business entities in future auctions, the 

Commission 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, 

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. A third auction commenced 

on October 3, 2001 and closed on 

October 16, 2001. Here, five bidders 

won 317 (Metropolitan Trading Areas 

and nationwide) licenses. Three of these 

claimed status as a small or very small 

entity and won 311 licenses. 

23. 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, the Commission applies 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. 

Census Bureau data for 2002 show that 

there were 1,397 firms in this category 

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, under this category and size 

standard, the majority of firms can be 

considered small. 

24. 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, the Commission 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. 

A third auction included four licenses: 

2 BEA licenses and 2 EAG licenses in 

the 220 MHz Service. No small or very 

small business won any of these 

licenses. 

25. 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. 

26. 700 MHz Guard Band Licensees. 

In the 700 MHz Guard Band Order, the 

Commission 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’’ is an entity that, together with 

its affiliates and controlling principals, 

has average gross revenues not 

exceeding $15 million for the preceding 

31672 Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 

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. Subsequently, in the 700 MHz 

Second Report and Order, the 

Commission reorganized the licenses 

pursuant to an agreement among most of 

the licensees, resulting in a spectral 

relocation of the first set of paired 

spectrum block licenses, and an 

elimination of the second set of paired 

spectrum block licenses (many of which 

were already vacant, reclaimed by the 

Commission from Nextel). A single 

licensee that did not participate in the 

agreement was grandfathered in the 

initial spectral location for its two 

licenses in the second set of paired 

spectrum blocks. Accordingly, at this 

time there are 54 licenses in the 700 

MHz Guard Bands and there is no 

auction data applicable to determine 

which are held by small businesses. 

27. 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 policies 

adopted herein. 

28. Wireless Cable Systems. Wireless 

cable systems use 2 GHz band 

frequencies of the Broadband Radio 

Service (‘‘BRS’’), formerly Multipoint 

Distribution Service (‘‘MDS’’), and the 

Educational Broadband Service (‘‘EBS’’), 

formerly Instructional Television Fixed 

Service (‘‘ITFS’’), to transmit video 

programming and provide broadband 

services to residential subscribers. 

These services were originally designed 

for the delivery of multichannel video 

programming, similar to that of 

traditional cable systems, but over the 

past several years licensees have 

focused their operations instead on 

providing two-way high-speed Internet 

access services. The Commission 

estimates that the number of wireless 

cable subscribers is approximately 

100,000, as of March 2005. Local 

Multipoint Distribution Service 

(‘‘LMDS’’) is a fixed broadband point-tomultipoint microwave service that 

provides for two-way video 

telecommunications. As described 

below, the SBA small business size 

standard for the broad census category 

of Cable and Other Program 

Distribution, which consists of such 

entities generating $13.5 million or less 

in annual receipts, appears applicable to 

MDS, ITFS and LMDS. Other standards 

also apply, as described. 

29. The Commission has defined 

small MDS (now BRS) and LMDS 

entities in the context of Commission 

license auctions. In the 1996 MDS 

auction, the Commission defined a 

small business as an entity that had 

annual average gross revenues of less 

than $40 million in the previous three 

calendar years. This definition of a 

small entity in the context of MDS 

auctions has been approved by the SBA. 

In the MDS auction, 67 bidders won 493 

licenses. Of the 67 auction winners, 61 

claimed status as a small business. At 

this time, the Commission estimates that 

of the 61 small business MDS auction 

winners, 48 remain small business 

licensees. In addition to the 48 small 

businesses that hold BTA 

authorizations, there are approximately 

392 incumbent MDS licensees that have 

gross revenues that are not more than 

$40 million and are thus considered 

small entities. MDS licensees and 

wireless cable operators that did not 

receive their licenses as a result of the 

MDS auction fall under the SBA small 

business size standard for Cable and 

Other Program Distribution. Information 

available to us indicates that there are 

approximately 850 of these licensees 

and operators that do not generate 

revenue in excess of $13.5 million 

annually. Therefore, the Commission 

estimates that there are approximately 

850 small entity MDS (or BRS) 

providers, as defined by the SBA and 

the Commission’s auction rules. 

30. Educational institutions are 

included in this analysis as small 

entities; however, the Commission has 

not created a specific small business 

size standard for ITFS (now EBS). The 

Commission estimates that there are 

currently 2,032 ITFS (or EBS) licensees, 

and all but 100 of the licenses are held 

by educational institutions. Thus, the 

Commission estimates that at least 1,932 

ITFS licensees are small entities. 

31. In the 1998 and 1999 LMDS 

auctions, the Commission defined a 

small business as an entity that has 

annual average gross revenues of less 

than $40 million in the previous three 

calendar years. Moreover, the 

Commission added an additional 

classification for a ‘‘very small 

business,’’ which was defined as an 

entity that had annual average gross 

revenues of less than $15 million in the 

previous three calendar years. These 

definitions of ‘‘small business’’ and 

‘‘very small business’’ in the context of 

the LMDS auctions have been approved 

by the SBA. In the first LMDS auction, 

104 bidders won 864 licenses. Of the 

104 auction winners, 93 claimed status 

as small or very small businesses. In the 

LMDS re-auction, 40 bidders won 161 

licenses. Based on this information, the 

Commission believes that the number of 

small LMDS licenses will include the 93 

winning bidders in the first auction and 

the 40 winning bidders in the reauction, for a total of 133 small entity 

LMDS providers as defined by the SBA 

and the Commission’s auction rules. 

32. 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 LMDS licenses began on February 

18, 1998 and closed on March 25, 1998. 

The Commission established a small 

business size standard for LMDS 

licensees as an entity that has average 

gross revenues of less than $40 million 

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, the Commission 

concludes that the number of small 

LMDS licenses consists of the 93 

winning bidders in the first auction and 

the 40 winning bidders in the reauction, for a total of 133 small entity 

LMDS providers. 

Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 31673 

33. 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, the 

Commission 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. 

The Commission 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. 

34. 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, the 

Commission believes 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. 

35. 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. 

3. Cable and OVS Operators 

36. Cable Television Distribution 

Services. Since 2007, these services 

have been defined within the broad 

economic census category of Wired 

Telecommunications Carriers; that 

category is defined as follows: ‘‘This 

industry comprises establishments 

primarily engaged in operating and/or 

providing access to transmission 

facilities and infrastructure that they 

own and/or lease for the transmission of 

voice, data, text, sound, and video using 

wired telecommunications networks. 

Transmission facilities may be based on 

a single technology or a combination of 

technologies.’’ The SBA has developed 

a small business size standard for this 

category, which is: All such firms 

having 1,500 or fewer employees. To 

gauge small business prevalence for 

these cable services the Commission 

must, however, use current census data 

that are based on the previous category 

of Cable and Other Program Distribution 

and its associated size standard; that 

size standard was: All such firms having 

$13.5 million or less in annual receipts. 

According to Census Bureau data for 

2002, there were a total of 1,191 firms 

in this previous category that operated 

for the entire year. Of this total, 1,087 

firms had annual receipts of under $10 

million, and 43 firms had receipts of 

$10 million or more but less than $25 

million. Thus, the majority of these 

firms can be considered small. 

37. Cable Companies and Systems. 

The Commission has also developed its 

own small business size standards, for 

the purpose of cable rate regulation. 

Under the Commission’s rules, a ‘‘small 

cable company’’ is one serving 400,000 

or fewer subscribers, nationwide. 

Industry data indicate that, of 1,076 

cable operators nationwide, all but 

eleven are small under this size 

standard. In addition, under the 

Commission’s rules, a ‘‘small system’’ is 

a cable system serving 15,000 or fewer 

subscribers. Industry data indicate that, 

of 7,208 systems nationwide, 6,139 

systems have under 10,000 subscribers, 

and an additional 379 systems have 

10,000–19,999 subscribers. Thus, under 

this second size standard, most cable 

systems are small. 

38. Cable System Operators. 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 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. 

Industry data indicate that, of 1,076 

cable operators nationwide, all but ten 

are small under this size standard. The 

Commission notes that 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 the Commission is unable 

to estimate more accurately the number 

of cable system operators that would 

qualify as small under this size 

standard. 

39. Open Video Systems (OVS). In 

1996, Congress established the open 

video system (OVS) framework, one of 

four statutorily recognized options for 

the provision of video programming 

services by local exchange carriers 

(LECs). The OVS framework provides 

opportunities for the distribution of 

video programming other than through 

cable systems. Because OVS operators 

provide subscription services, OVS 

previously fell within the now obsolete 

SBA small business size standard of 

Cable and Other Program Distribution 

Services, which consists of such entities 

having $13.5 million or less in annual 

receipts. The Commission has certified 

25 OVS operators, with some now 

providing service. Broadband service 

providers (BSPs) are currently the only 

significant holders of OVS certifications 

or local OVS franchises. As of June, 

2005, BSPs served approximately 1.4 

million subscribers, representing 1.5 

percent of all MVPD households. 

Affiliates of Residential 

Communications Network, Inc. (RCN), 

which serves about 371,000 subscribers 

as of June, 2005, is currently the largest 

BSP and 14th largest MVPD. RCN 

received approval to operate OVS 

31674 Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 

systems in New York City, Boston, 

Washington, D.C. and other areas. The 

Commission does not have financial 

information regarding the entities 

authorized to provide OVS, some of 

which may not yet be operational. The 

Commission thus believes that at least 

some of the OVS operators may qualify 

as small entities. 

4. Internet Service Providers 

40. 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.’’ The new size 

standard is 500 employees. However, 

data is not yet available under this new 

standard. Under the previous SBA size 

standard, such a business is small if it 

has average annual receipts of $23 

million or less. According to Census 

Bureau data for 2002, there were 2,529 

firms in this category that operated for 

the entire year. Of these, 2,437 firms had 

annual receipts of under $10 million, 

and an additional 47 firms had receipts 

of between $10 million and 

$24,999,999. Consequently, the 

Commission estimates that the majority 

of these firms are small entities that may 

be affected by our action. 

41. All Other Information Services. 

‘‘This industry comprises 

establishments primarily engaged in 

providing other information services 

(except new syndicates and libraries 

and archives).’’ The SBA has developed 

a small business size standard for this 

category; that size standard is $7.0 

million or less in average annual 

receipts. However, data has not yet been 

collected under the new size standard, 

and so the Commission refers to data 

collected under the previous size 

standard, $6.5 million or less in average 

annual receipts. According to Census 

Bureau data for 2002, there were 155 

firms in this category that operated for 

the entire year. Of these, 138 had annual 

receipts of under $5 million, and an 

additional four firms had receipts of 

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

Consequently, the Commission 

estimates that the majority of these firms 

are small entities that may be affected 

by our action. 

5. Equipment Manufacturers 

42. SBA small business size standards 

are given in terms of ‘‘firms.’’ Census 

Bureau data concerning computer 

manufacturers, on the other hand, are 

given in terms of ‘‘establishments.’’ The 

Commission notes that the number of 

‘‘establishments’’ is a less helpful 

indicator of small business prevalence 

in this context than would be the 

number of ‘‘firms’’ or ‘‘companies,’’ 

because the latter take into account the 

concept of common ownership or 

control. Any single physical location for 

an entity is an establishment, even 

though that location may be owned by 

a different establishment. Thus, the 

census numbers provided below may 

reflect inflated numbers of businesses in 

the given category, including the 

numbers of small businesses. 

43. Radio and Television 

Broadcasting and Wireless 

Communications Equipment 

Manufacturing. The Census Bureau 

defines this category as follows: ‘‘This 

industry comprises establishments 

primarily engaged in manufacturing 

radio and television broadcast and 

wireless communications equipment. 

Examples of products made by these 

establishments are: Transmitting and 

receiving antennas, cable television 

equipment, GPS equipment, pagers, 

cellular phones, mobile 

communications equipment, and radio 

and television studio and broadcasting 

equipment.’’ The SBA has developed a 

small business size standard for Radio 

and Television Broadcasting and 

Wireless Communications Equipment 

Manufacturing, which is: all such firms 

having 750 or fewer employees. 

According to Census Bureau data for 

2002, there were a total of 1,041 

establishments in this category that 

operated for the entire year. Of this 

total, 1,010 had employment of under 

500, and an additional 13 had 

employment of 500 to 999. Thus, under 

this size standard, the majority of firms 

can be considered small. 

44. Telephone Apparatus 

Manufacturing. The Census Bureau 

defines this category as follows: ‘‘This 

industry comprises establishments 

primarily engaged in manufacturing 

wire telephone and data 

communications equipment. These 

products may be standalone or boardlevel components of a larger system. 

Examples of products made by these 

establishments are central office 

switching equipment, cordless 

telephones (except cellular), PBX 

equipment, telephones, telephone 

answering machines, LAN modems, 

multi-user modems, and other data 

communications equipment, such as 

bridges, routers, and gateways.’’ The 

SBA has developed a small business 

size standard for Telephone Apparatus 

Manufacturing, which is: all such firms 

having 1,000 or fewer employees. 

According to Census Bureau data for 

2002, there were a total of 518 

establishments in this category that 

operated for the entire year. Of this 

total, 511 had employment of under 

1,000, and an additional 7 had 

employment of 1,000 to 2,499. Thus, 

under this size standard, the majority of 

firms can be considered small. 

45. Semiconductor and Related 

Device Manufacturing. Examples of 

manufactured devices in this category 

include ‘‘integrated circuits, memory 

chips, microprocessors, diodes, 

transistors, solar cells and other 

optoelectronic devices.’’ 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, there were 1,032 

establishments in this category that 

operated with payroll during 2002. Of 

these, 950 had employment of under 

500, and 42 establishments had 

employment of 500 to 999. 

Consequently, the Commission 

estimates that the majority of these 

establishments are small entities. 

46. 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, there were 170 

establishments in this category that 

operated with payroll during 2002. Of 

these, 164 had employment of under 

500, and five establishments had 

employment of 500 to 999. 

Consequently, the Commission 

estimates that the majority of these 

establishments are small entities. 

D. Description of Projected Reporting, 

Recordkeeping, and Other Compliance 

Requirements 

47. Should the Commission decide to 

adopt any rules to further improve the 

process of changing providers, such 

action could potentially result in 

increased, reduced, or otherwise 

modified recordkeeping, reporting, or 

other compliance requirements for 

affected providers of service. The 

Commission seeks comment on the 

effect of any proposals on small entities. 

Entities, especially small businesses, are 

encouraged to quantify the costs and 

benefits of any reporting, recordkeeping, 

or compliance requirement that may be 

established in this proceeding. 

Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 31675 

E. Steps Taken to Minimize Significant 

Economic Impact on Small Entities, and 

Significant Alternatives Considered 

48. The RFA requires an agency to 

describe any significant alternatives that 

it has considered in reaching its 

proposed approach, which may include 

the following four alternatives (among 

others): (1) The establishment of 

differing compliance and 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 part thereof, for 

small entities. 

49. The Commission asks commenters 

to refresh the record on what further 

steps the Commission should take to 

improve the process of changing 

providers and provide any new ideas 

that reflect and build upon the new onebusiness day interval. The Commission 

also seeks comment on the benefits and 

burdens, especially the burdens on 

small entities, of adopting any new rules 

regarding the porting process. The 

Commission expects to consider the 

economic impact on small entities, as 

identified in comments filed in response 

to the FNPRM, in reaching its final 

conclusions and taking action in this 

proceeding. 

F. Federal Rules That May Duplicate, 

Overlap, or Conflict With the Proposed 

Rules 

50. None. 

Initial Paperwork Reduction Act of 

1995 Analysis 

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). 

Ordering Clauses 

It is ordered that pursuant to Sections 

1, 4(i), 4(j), 251, and 303(r) of the 

Communications Act of 1934, as 

amended, 47 U.S.C. 151, 154(i)–(j), 251, 

303(r), the Further Notice of Proposed 

Rulemaking in WC Docket No. 07–244 

and CC Docket No. 95–116 is adopted. 

It is further ordered that the 

Commission’s Consumer and 

Governmental Affairs Bureau, Reference 

Information Center, shall send a copy of 

this Report and Order and Further 

Notice of Proposed Rulemaking, 

including the Final Regulatory 

Flexibility Analysis and 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. E9–15131 Filed 7–1–09; 8:45 am] 

BILLING CODE 6712–01–P 

DEPARTMENT OF TRANSPORTATION 

Pipeline and Hazardous Materials 

Safety Administration 

49 CFR Parts 191, 192, 193, and 195 

[Docket No. PHMSA–2008–0291] 

RIN 2137–AE33 

Pipeline Safety: Updates to Pipeline 

and Liquefied Natural Gas Reporting 

Requirements 

AGENCY: Pipeline and Hazardous 

Materials Safety Administration 

(PHMSA), Department of Transportation 

(DOT). 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This Notice of Proposed 

Rulemaking seeks to revise the Pipeline 

Safety Regulations to improve the 

reliability and utility of data collections 

from operators of natural gas pipelines, 

hazardous liquid pipelines, and 

liquefied natural gas (LNG) facilities. 

These revisions will enhance PHMSA’s 

ability to: understand, measure, and 

assess the performance of individual 

operators and industry as a whole; 

integrate pipeline safety data to allow a 

more thorough, rigorous, and 

comprehensive understanding and 

assessment of risk; and expand and 

simplify existing electronic reporting by 

operators. These revisions will improve 

both the data and the analyses PHMSA 

relies on to make critical, safety-related 

decisions, and will facilitate PHMSA’s 

allocation of inspection and other 

resources based on a more accurate 

accounting of risk. 

DATES: Submit comments by August 31, 

2009. 

ADDRESSES: Comments should reference 

Docket No. PHMSA–2008–0291 and 

may be submitted in the following ways: 

• E-Gov Web Site: http:// 

www.regulations.gov. This Web site 

allows the public to enter comments on 

any Federal Register notice issued by 

any agency. Follow the instructions for 

submitting comments. 

• Fax: 1–202–493–2251. 

• Mail: Docket Management System: 

U.S. Department of Transportation, 

Docket Operations, M–30, Room W12– 

140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590–0001. 

• Hand Delivery: DOT Docket 

Management System, West Building 

Ground Floor, Room W12–140, 1200 

New Jersey Avenue, SE., Washington, 

DC 20590–0001 between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

Instructions: If you submit your 

comments by mail, submit two copies. 

To receive confirmation that PHMSA 

received your comments, include a selfaddressed stamped postcard. 

Note: Comments are posted without 

changes or edits to http:// 

www.regulations.gov, including any personal 

information provided. There is a privacy 

statement published on http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Roger Little by telephone at (202) 366– 

4569 or by electronic mail at 

roger.little@dot.gov. 

SUPPLEMENTARY INFORMATION: 

I. Objective 

PHMSA is seeking to improve the use 

of incident, infrastructure, and 

performance data in its approaches to 

improve pipeline safety. As part of 

PHMSA’s strategy to become a more 

risk-based and data-driven organization, 

PHMSA is proposing the following 

general data and data management 

improvements to the pipeline safety 

regulations: 

1. Modify the scope of part 191 

addressed in 49 CFR 191.1 to reflect the 

changes made in the scope of part 192 

to the definition of gas gathering lines. 

2. Change the definition of an 

‘‘incident’’ in 49 CFR 191.3 to require an 

operator to report an explosion or fire 

not intentionally set by the operator. 

The proposal also establishes a 

volumetric basis for reporting 

unexpected or unintentional gas loss. 

These reporting changes will more 

accurately depict the safety performance 

of gas pipelines over time. 

3. Require operators to report and file 

data electronically whenever possible. 

The electronic submission of data will 

increase the accuracy and quality of 

data collected which, in turn, will 

improve PHMSA’s data integration 

efforts. Electronic submission will also 

reduce the reporting burden on 

operators. 

4. Require operators of LNG facilities 

to submit incident and annual reports. 

This data will provide valuable 

infrastructure information to PHMSA,