65866 Federal Register / Vol. 66, No. 246 / Friday, December 21, 2001 / Proposed Rules

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 1

[WT Docket No. 01–319; FCC 01–333]

Review of Quiet Zones Application

Procedures

AGENCY: Federal Communications

Commission.

ACTION: Proposed rule.

SUMMARY: In this document, the

Commission, pursuant to staff

recommendations of the 2000 Biennial

Review Report, reviews the application

procedures for Quiet Zones to determine

whether they can be made more

efficient while continuing to ensure that

such zones are fully protected from

interference. In this document, the

Commission seeks comment on whether

to certain microwave applicants to

initiate conditional operation even if the

proposed site is located within a

defined distance from a quiet zone. The

Commission also seeks comment on

whether to expedite application

processing where there are Quiet Zone

implications; whether to allow parties to

provide notification to and begin

coordination with Quiet Zone entities in

advance of filing an application, and

seeks comment on any possible

modification of the rule prescribing the

procedures for coordination with quiet

zones and any specific service rules that

implement the Commission’s goals

regarding protection of Quiet Zones

from unwarranted and unacceptable

interference.

DATES: Comments are due on or before

January 22, 2002; Reply comments are

due on or before February 6, 2002.

ADDRESSES: Parties who choose to file

comments by paper should send

comments to Magalie Roman Salas,

Office of the Secretary, Federal

Communications Commission, 445 12th

Street, SW; TW–A325; Washington, D.C.

20554. Comments filed through the

Commission’s Electronic Comment

Filing System (ECFS) can be sent as an

electronic file via the Internet to http:/

/www.fcc.gov/e-file/ecfs.html.

FOR FURTHER INFORMATION CONTACT:

Katherine M. Harris at (202) 418–0609

(Wireless Telecommunications Bureau).

SUPPLEMENTARY INFORMATION: This is a

summary of the Notice of Proposed

Rulemaking (‘‘NPRM’’) in WT Docket

No. 01–319, FCC 01–333, adopted

November 9, 2001 and released

November 21, 2001. The complete text

is available for inspection and copying

during normal business hours in the

FCC Reference Center, 445 12 Street,

SW, Washington, DC and also may be

purchased from the Commission’s copy

contractor, Qualex International, 445

12th Street, SW, CY–B402, Washington,

DC 20554. The document is also

available via the Internet at http://

www.fcc.gov/Bureaus/Wireless/Orders/

2001/fcc01333.pdf.

Paperwork Reduction Act

1. The NPRM contains no proposed

information collection.

Synopsis of Notice of Proposed

Rulemaking

2. This Notice of Proposed

Rulemaking (NPRM) is a part of the

Commission’s biennial regulatory

review, pursuant to section 11 of the

Communications Act. In particular, this

NPRM seeks comments on procedures

for streamlining the Commission’s rules

for the processing of applications

potentially affecting areas know as

Quiet Zones.

I. Discussion

3. This NPRM seeks comments on

procedures for streamlining the

Commission’s rules for the processing of

applications potentially affecting areas

known as Quiet Zones, currently set

forth in 47 CFR 1.924 of our rules. Quiet

Zones are defined as those areas where

it is necessary to restrict radiation so as

to minimize possible impact on the

operations of radio astronomy or other

facilities that are highly sensitive to

interference. In seeking comments on

these rules, the Commission is

responding to concerns that the rules

may be burdensome and unnecessarily

delay the provision of service to the

public. The Commission’s purpose is to

determine whether the required

procedures can be streamlined to reduce

the effect on wireless licenses while

adequately protecting the operations of

Quiet Zones.

4. The Commission seeks comments

on whether to allow part 101 applicants

to initiate conditional operation under

§ 101.31(b), notwithstanding the

limitation contained in § 101.31(b)(1)(v),

if they submit to the Commission

written consent from the affected Quiet

Zone entity and otherwise are eligible to

initiate conditional operations over the

proposed facility; whether to expedite

application processing where there are

Quiet Zone implications if the applicant

provides written consent from the Quiet

Zone entity; whether to allow parties to

provide notification to and begin

coordination with Quiet Zone entities in

advance of filing an application with the

Commission, including the appropriate

period of time to prescribe for such

advance notification and coordination;

and possible modification of 47 CFR

1.924, 90.655, 95.45, 101.1009, and

101.1329 and any other rules that

implement the Commission’s goals

regarding protection of Quiet Zones

from unwarranted and unacceptable

interference.

II. Filing Procedures

5. Pursuant to 47 CFR 1.415 and

1.419, interested parties may file

comments on or before January 22,

2001, and reply comments on or before

February 6, 2002. Comments may be

filed by using the Commission’s

Electronic Comment Filing System

(ECFS) or by filing paper copies. See

Electronic Filing of Documents

Rulemaking Proceeding, at 63 FR 24121

May 1, 1998.

6. Comments filed through ECFS can

be sent as an electronic file via the

Internet to http://www.fcc.gov/e-file/

ecfs.html. Generally, only one copy of

an electronic submission must be filed.

If multiple docket or rulemaking

numbers appear in the caption of this

proceeding, however, commenters must

transmit one electronic copy of the

comments to each docket or rulemaking

number referenced in the caption. In

completing the transmittal screen,

commenters should include their full

name, Postal Service mailing address,

and the applicable docket or rulemaking

number. Parties may also submit

electronic comments by Internet e-mail.

To get filing instructions for e-mail

comments, commenters should send an

e-mail to ecfs@fcc.gov, and should

include the following words in the body

of the message, ‘‘get form <your e-mail

address>.’’ A sample form and

directions will be sent in reply.

7. Parties who choose to file by paper

must file an original and four copies of

each filing. All filings must be sent to

the Commission’s Secretary, Magalie

Roman Salas, Office of the Secretary,

Federal Communications Commission,

445 12th Street, S.W., TW–A325,

Washington, DC 20554.

8. Regardless of whether parties

choose to file electronically or by paper,

parties should also file one copy of any

documents filed in this docket with the

Commission’s copy contractor, Qualex

International, 445 12th Street, SW, CY–

B402, Washington, DC 20554.

Comments and reply comments will be

available for public inspection during

regular business hours in the FCC

Reference Center, 445 12th Street, SW,

Washington, DC 20554. Comments and

reply comments must include a short

and concise summary of the substantive

arguments raised in the pleading.

Comments and reply comments must

also comply with 47 CFR 1.49, and all

Federal Register / Vol. 66, No. 246 / Friday, December 21, 2001 / Proposed Rules 65867

1 5 U.S.C. 603.

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

3See id.

4Telecommunications Act of 1996, Public Law

104–104, 110 Stat. 56 codified at 47 U.S.C. 151 et

seq. (1996 Act). The 1996 Act amended the

Communications Act of 1934 (the

‘‘Communications Act’’ or the ‘‘Act’’).

5 5 U.S.C. 603(b)(3).

6U.S.C. 601(6).

7 5 U.S.C. 601(3) (incorporating by reference the

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

632). Pursuant to the RFA, the statutory definition

of a small business applies ‘‘unless an agency, after

consultation with the office of Advocacy of the

Small Business Administration and after

opportunity for public comment, establishes one or

more definitions of such terms which are

appropriate to the activities for the agency and

publishes such definition(s) in the Federal

Register.’’ 5 U.S.C. 601(3).

8 15 U.S.C. 632.

9 5 U.S.C. 601(4).

10 1992 Economic Census, U.S. Bureau of Census,

Table 6 (special tabulation of data under contract

to Office of Advocacy of the U.S. Small Business

Administration).

11 5 U.S.C. 601(5).

12U.S. Dept. of Commerce, Bureau of the Census,

‘‘1992 Census of Governments.’’

13 Id.

14 13 CFR 121.201, Standard Industrial Code (SIC)

code 4812.

15 1992 Census, Series UC92–S–1 at Table 5, SIC

code 4812.

other applicable sections of the

Commission’s rules. The Commission

also directs all interested parties to

include the name of the filing party and

the date of the filing on each page of

their comments and reply comments.

All parties are encouraged to utilize a

table of contents, regardless of length of

their submission.

III. Initial Regulatory Flexibility

Analysis

9. As required by the Regulatory

Flexibility Act,1 (RFA) has prepared an

Initial Regulatory Flexibility Analysis

(IRFA) of the possible impact on small

entities of the proposals in this Notice

of Proposed Rulemaking. Written public

comments are requested on this IRFA.

These comments must be filed in

accordance with the same filing

deadlines for comments on the NPRM,

and they must have a separate and

distinct heading designating them as

responses to the IRFA. The

Commission’s Consumer Information

Bureau, Reference Information Center,

will send a copy of this NPRM,

including the IRFA, to the Chief

Counsel for Advocacy of the Small

Business Administration, in accordance

with the Regulatory Flexibility Act.2 In

addition, the Notice and IRFA (or

summaries thereof) will be published in

the Federal Register.3

A. Need for, and Objectives of, the Rules

10. In the Quiet Zones NPRM, the

Commission seeks comment on a

number of proposals to further its

ongoing efforts under the

Telecommunications Act of 1996 4 to

foster competition in local

communications markets. Specifically,

the Commission seeks comments on: (1)

whether to allow part 101 applicants to

initiate conditional operation under 47

CFR 101.31(b), notwithstanding the

limitation contained in 101.31(b)(1)(v),

if they submit to the Commission

written consent from the affected Quiet

Zone entity and otherwise are eligible to

initiate conditional operations over the

proposed facility; (2) whether to

expedite application processing where

there are Quiet Zone implications if the

applicant provides written consent from

the Quiet Zone entity; (3) whether to

allow parties to provide notification to

and begin coordination with Quiet Zone

entities in advance of filing an

application with the Commission, and

the appropriate period of time to

prescribe for such advance notification

and coordination; and (4) any possible

modification of 47 CFR 1.924, 90.655,

95.45, 101.1009, and 101.1329 and any

other rules that implement the

Commission’s goals regarding protection

of Quiet Zones from unwarranted and

unacceptable interference.

B. Legal Basis

11. The potential actions on which

comment is sought in this Quiet Zones

NPRM would be authorized under

sections 1, 4(i), 11,303(g), and 303(r) of

the Communications Act of 1934, as

amended, 47 U.S.C. 151, 154(i), 161,

303(g), and 303(r).

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, if adopted.5 The

RFA defines the term ‘‘small entity’’ as

having the same meaning as the terms

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

and ‘‘small governmental jurisdiction.’’ 6

In addition, the term ‘‘small business’’

has the same meaning as the term

‘‘small business concern’’ under section

3 of the Small Business Act.7 A small

business concern is one that: (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.8 A small

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

owned and operated and is not

dominant in its field.’’ 9 Nationwide, as

of 1992, there were approximately

275,801 small organizations.10 ‘‘Small

governmental jurisdiction’’ generally

means ‘‘governments of cities, counties,

towns, townships, villages, school

districts, or special districts, with a

population of less than 50,000.’’ 11 As of

1992, there were approximately 85,006

such jurisdictions in the United

States.12 This number includes 38,978

counties, cities, and towns; of these,

37,566, or 96 percent, have populations

of fewer than 50,000.13 The Census

Bureau estimates that this ratio is

approximately accurate for all

governmental entities. Thus, of the

85,006 governmental entities, we

estimate that 81,6000 (96 percent) are

small entities.

13. In the following paragraphs, we

further describe and estimate the

number of small entity licensees that

may be affected by any streamlining

changes in the proposed rules, if

adopted. Since this rulemaking

proceeding applies to multiple services,

we will analyze the number of small

entities affected on a service-by-service

basis. The number of small entities

identified below substantially

overestimates the number of small

entities that might be affected by any

rule change in this docket, since only

entities proposing or planning facilities

in proximity to any of the Quiet Zones

would be affected by any changes in the

requirements.

14. Cellular Licensees. Neither the

Commission nor the SBA has developed

a definition of small entities applicable

to cellular licensees. Therefore, the

applicable definition of small entity is

the definition under the SBA rules

applicable to radiotelephone (wireless)

companies. This provides that a small

entity is a radiotelephone company

employing no more than 1,500

persons.14 According to the Bureau of

the Census, only twelve radiotelephone

firms from a total of 1,178 such firms

that operated during 1992 had 1,000 or

more employees.15 Even if all twelve of

these firms were cellular telephone

companies, nearly all cellular carriers

were small businesses under the SBA’s

definition. In addition, we note that

there are 1,758 cellular licenses;

however, a cellular licensee may own

several licenses. According to the most

recent Telecommunications Industry

Revenue data, 808 carriers reported that

they were engaged in the provision of

either cellular service or Personal

Communications Service, which are

65868 Federal Register / Vol. 66, No. 246 / Friday, December 21, 2001 / Proposed Rules

16See Telecommunications Industry Revenues:

1999, Industry Analysis Division, Common Carrier

Bureau (Sept. 2000).

17 13 CFR 121.201, WIC code 4812.

18U.S. Bureau of the Census, U.S. Department of

Commerce, 1992 Census of Transportation,

Communications, and Utilities, UC92–S–1, Subject

Series, Establishment and Firm Size, Table 5,

Employment Size of Firms; 1992, SIC code 4812

(issued May 1995).

19See Letter to Daniel B. Phythyon, Chief,

Wireless Telecommunications Bureau, Federal

Communications Commission, from Aida Alvarez,

Administrator, Small Business Administration (Jan.

6, 1998).

20See Letter to Amy J. Zoslov, Chief (Acting),

Auctions and Industry Analysis Division, Wireless

Telecommunications Bureau, Federal

Communications Commission, from Aida Alvarez,

Administrator, Small Business Administration, at

3–4 (Dec. 2, 1998).

21Trends in Telephone Service, Table 19.3 (Feb.

19, 1999).

placed together in the data.16 We do not

have data specifying the number of

these carriers that are not independently

owned and operated or have more than

1,500 employees, and are unable at this

time to estimate with greater precision

the number of cellular service carriers

that would qualify as small business

concerns under the SBA’s definition.

We estimate that there are no more than

808 small cellular service carriers that

may be affected by any proposed rules

that may be adopted.

15. 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 definition of small entities

specifically applicable to such

incumbent 220 MHz Phase I licensees.

To estimate the number of such

licensees that are small businesses, we

apply the definition under the SBA

rules applicable to radiotelephone

communications companies. This

definition provides that a small entity is

a radiotelephone company employing

no more than 1,500 persons.17

According to the Bureau of the Census,

only 12 radiotelephone firms out of a

total of 1,178 such firms that operated

during 1992 had 1,000 or more

employees.18 Therefore, if this general

ratio continues, in the context of Phase

I 220 MHz licensees, we estimate that

nearly all such licensees are small

businesses under the SBA’s definition.

16. 220 MHz Radio Service—Phase II

Licensees. The Phase II 220 MHz service

is subject to spectrum auctions. In the

220 MHz Third Report and Order in PR

Docket No. 89–552, GN Docket No. 93–

252, PP Docket No. 93–253, 62 FR

16004, April 3, 1997, we adopted

criteria for defining small businesses

and very small businesses for purposes

of determining their eligibility for

special provisions such as bidding

credits and installment payments. We

have defined a small business as an

entity that, together with its affiliates

and controlling principals, has average

gross revenues not exceeding $15

million for the preceding three years. 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 $3

million for the preceding three years.

The SBA has approved these

definitions.19 Two auctions of Phase II

licenses have been conducted. In the

first auction, 908 licenses were

auctioned in three different-sized

geographic areas: three nationwide

licenses, 30 Economic Area Group

(EAG) Licenses, and 875 Economic Area

(EA) Licenses. Of the 908 licenses

auctioned, 693 were sold. Companies

claiming small business status won one

of the nationwide licenses, 67 percent of

the regional licenses, and 54 percent of

the EA licenses. The second auction

included 225 licenses: 216 EA licenses

and 9 EAG licenses. Fourteen

companies claiming small business

status won 158 licenses.

17. 700 MHz Guard Band Licenses. In

the 700 MHz Guard Band Order in CC

Docket No. 99–168, 65 FR 17594, April

4, 2000, we adopted criteria for defining

small businesses and very small

businesses for purposes of determining

their eligibility for special provisions

such as bidding credits and installment

payments. We have defined a small

business as an entity that, together with

its affiliates and controlling principals,

has average gross revenues not

exceeding $15 million for the preceding

three years. 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 $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 at that time, 96

licenses were sold to 9 bidders. Five of

these bidders were small businesses that

won a total of 26 licenses. A second

auction began on February 13, 2001, and

ended on February 21, 2001. A total of

eight licenses were sold to three

bidders. One of these bidders was a

small business that won a total of two

of these licenses.

18. Paging. In the Paging Second

Report and Order and Further Notice of

Proposed Rulemaking in WT Docket No.

96–18; PP Docket No. 93–253 at 62 FR

11616, March 12, 1997 and at 64 FR

33762, June 24, 1999, we adopted

criteria for defining small businesses

and very small businesses for purposes

of determining their eligibility for

special provisions such as bidding

credits and installment payments. We

have defined a small business as an

entity that, together with its affiliates

and controlling principals, has average

gross revenues for the three preceding

years of not more than $15 million. A

very small business is defined as an

entity that, together with affiliates and

controlling principals, has average gross

revenues for the three preceding

calendar years of not more than $3

million. The SBA has approved these

definitions.20 An auction of MEA

licenses commenced on February 24,

2000, and closed on March 2, 2000. Of

the 985 licenses auctioned, 440 were

sold. Fifty-seven companies claiming

small business status won licenses. In

addition, at present, there are

approximately 24,000 Private Paging

licenses and 74,000 Common Carrier

Paging licenses. According to the most

recent Telecommunications Industry

Revenue data, 172 carriers reported that

they were engaged in the provision of

either paging or ‘‘other mobile’’ services,

which are placed together in the data.21

We are unable at this time to estimate

with precision the number of paging

carriers that would qualify as small

business concerns, particularly among

the pre-existing licensees.

Consequently, we estimate that there are

fewer than, but up to, 172 small paging

carriers that may be affected by the

proposed rules, if adopted. We estimate

that the majority of private and common

carrier paging providers would qualify

as small entities under the SBA

definition.

19. Broadband Personal

Communications Service (PCS). The

broadband PCS spectrum is divided into

six frequency blocks designated A

through F, and the Commission has held

auctions for each block. The

Commission defined ‘‘small entity’’ for

Blocks C and F as an entity that has

average gross revenues of less than $40

million in the three previous calendar

years in a Report and Order in WT

Docket No. 96–59; GN Docket No. 90–

314, 61 FR 33859, July 1, 1996. 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

regulations defining ‘‘small entity’’ in

Federal Register / Vol. 66, No. 246 / Friday, December 21, 2001 / Proposed Rules 65869

22See Letter to Amy J. Zoslov, Chief (Acting),

Auctions and Industry Analysis Division, Wireless

Telecommunications Bureau, Federal

Communications Commission, from Aida Alvarez,

Administrator, Small Business Administration, at 3

(Dec 2, 1998).

23FCC News, Broadband PCS, D,. E and F Block

Auction Closes, No. 71744 (rel. Jan 14, 1997).

24See Letter to Amy J. Zoslov, Chief (Acting),

Auctions and Industry Analysis Division, Wireless

Telecommunications Bureau. Federal

Communication Commission, from Aida Alvarez,

Administrator, Small Business Administration (Dec.

2, 1998).

25The service is defined in § 22.99 of the

Commission’s rules, 47 CFR 22.99.

26BETRS is defined in §§ 22.757 and 22.759 of

the Commission’s rules, 47 CFR 22.757 and 22.759.

27 13 CFR 121.201, SIC code 4812.

28The service is defined in § 22.99 of the

Commission’s rules, 47 CFR 22.99.

29 13 CFR 121.201, SIC code 4812.

30 47 CFR 90.814(b)(1). 31See Letter to Thomas J. Sugrue, Chief, Wireless

Telecommunications Bureau, Federal

Communications Commission, from Aida Alvarez,

Administrator, Small Business Administration

(Aug. 10, 1999) (800 MHz SMR); Letter to Michele

C. Farquhar, Acting Chief, Wireless

Telecommunications Bureau, Federal

Communications Commission, from Philip Lader,

Administrator, Small Business Administration (July

24, 1996) (900 MHz SMR).

the context of broadband PCS auctions

have been approved by the SBA.22 No

small businesses within the SBAapproved definition 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.23 On March 23, 1999, the

Commission reauctioned 347 C, D, E,

and F block licenses; there were 48

small business winning bidders. Based

on this information, we conclude that

the number of small broadband PCS

licensees will include the 90 winning C

Block bidders and the 93 qualifying

bidders in the D, E, and F blocks, plus

the 48 winning bidders in the reauction, for a total of 231 small entity

PCS providers as defined by the SBA

and the Commission’s auction rules. On

January 26, 2001, the Commission

completed the auction of 422 C and F

block broadband PCS licenses in

Auction No. 35. Of the 35 winning

bidders in this auction, 29 qualified as

small or very small businesses.

20. Narrowband PCS. To date, three

auctions of narrowband PCS licenses

have been conducted. Through these

auctions, the Commission has awarded

a total of 41 licenses, 11 of which were

obtained by small businesses. For

purposes of the first two auctions that

have already been held, small

businesses were defined as entities with

average gross revenues for the prior

three calendar years of $40 million or

less in the Third Memorandum Opinion

and Order and Further Notice of

Proposed Rulemaking in PP Docket No.

93–253, 59 FR 44109, August 26, 1994.

Four of the 16 winning bidders in the

two previous narrowband PCS auctions

were small businesses, as that term was

defined under the then existing rules.

To ensure meaningful participation of

small business entities in subsequent

auctions, the Commission adopted a

two-tiered definition of small businesses

in the Narrowband PCS Second Report

and Order and Second Further Notice of

Proposed Rulemaking in GN Docket No.

90–314, ET Docket No. 92–100, PP

Docket No. 93–253, at 65 FR 35843 and

65 FR 35875, June 6, 2000. 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. These

definitions have been approved by the

SBA.24 The third auction closed on

October 16, 2001, and involved eight

nationwide and 357 Metropolitan

Trading Area (MTA) licenses. Five

bidders won 317 licenses (309 MTA

licenses and the eight nationwide

licenses). Three of the five winning

bidders were small businesses. The

Commission cannot predict accurately

the number of licenses that will be

awarded to small entities in future

auctions. The Commission assumes, for

purposes of this IRFA, that a large

portion of the remaining narrowband

PCS licenses will be awarded to small

entities. The Commission also assumes

that at least some small businesses will

acquire narrowband PCS licenses by

means of the Commission’s partitioning

and disaggregation rules.

21. Rural Radiotelephone Service. The

Commission has not adopted a

definition of small entity specific to the

Rural Radiotelephone Service.25 A

significant subset of the Rural

Radiotelephone Service is the Basic

Exchange Telephone Radio Systems

(BETRS).26 We will use the SBA

definition applicable to radiotelephone

companies, i.e., an entity employing no

more than 1,500 persons.27 There are

approximately 1,000 licensees in the

Rural Radiotelephone Service, and we

estimate that almost all of them qualify

as small entities under the SBA

definition.

22. Air-Ground Radiotelephone

Service. The Commission has not

adopted a definition of small entity

specific to the Air-Ground

Radiotelephone Service.28 Accordingly,

we will use the SBA definition

applicable to radiotelephone companies,

i.e., an entity employing no more than

1,500 persons.29 There are

approximately 100 licensees in the AirGround Radiotelephone Service, and we

estimate that almost all of them qualify

as small under the SBA definition.

23. Specialized Mobile Radio (SMR).

The Commission has defined ‘‘small

business’’ for purposes of auctioning

900 MHz SMR licenses, 800 MHz SMR

licenses for the upper 200 channels, and

800 MHz SMR licenses for the lower

230 channels on the 800 MHz band, as

a firm that has had average annual gross

revenues of $15 million or less in the

three preceding calendar years.30 The

SBA has approved this small business

size standard for the 800 MHz and 900

MHz auctions.31 Sixty winning bidders

for geographic area licenses in the 900

MHz SMR band qualified as small

businesses under the $15 million size

standard. The auction of the 525 800

MHz SMR geographic area licenses for

the upper 200 channels began on

October 28, 1997, and was completed on

December 8, 1997. Ten winning bidders

for geographic area licenses for the

upper 200 channels in the 800 MHz

band qualified as small businesses

under the $15 million size standard. An

auction of 800 MHz SMR geographic

area licenses for the General Category

channels began on August 16, 2000, and

was completed on September 1, 2000.

Of the 1,050 licenses offered in that

auction, 1,030 licenses were sold.

Eleven winning bidders for 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 on

December 5, 2000, a total of 2,800 EA

licenses in the lower 80 channels of the

800 MHz SMR service were sold. Of the

22 winning bidders, 19 claimed small

business status. In addition, there are

numerous incumbent site-by-site SMR

licensees in the 800 and 900 MHz

bands.

24. We do 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. We

assume, for purposes of this IRFA, that

all of the remaining existing extended

implementation authorizations are held

by small entities, as that term is defined

by the SBA.

65870 Federal Register / Vol. 66, No. 246 / Friday, December 21, 2001 / Proposed Rules

32Federal Communications Commission, 60th

Annual Report, Fiscal Year 1994, at 116.

33 13 CFR 121.201, SIC code 4812.

34 47 CFR part 101. 35Persons eligible under parts 80 and 90 of the

Commission’s rules can use Private OperationalFixed Microwave services. See 47 CFR Parts 80 and

90. Stations in this service are called operationalfixed to distinguish them from common carrier and

public fixed stations. Only the licensee may use the

operational-fixed station, and only for

communications related to the licensee’s

commercial, industrial, or safety operations.

36Auxiliary Microwave Service is governed by

part 74 of Title 47 of the Commission’s rules. See

47 CFR 74.501 et seq. Available to licensees of

broadcast stations and to broadcast and cable

network entities, broadcast auxiliary microwave

stations are used for relaying broadcast television

signals from the studio to the transmitter, or

between two points such as a main studio and an

auxiliary studio. The service also includes mobile

TV prickups, which relay signals from a remote

location back to the studio.

37 13 CFR 121.201, SIC 4812.

38With the exception of the special emergency

service, these services are governed by subpart B of

part 90 of the Commission’s rules, 47 CFR 90.15–

90.27. The police service includes 26,608 licensees

that serve state, county, and municipal enforcement

through telephony (voice), telegraphy (code) and

teletype and facsimile *printed material). The fire

radio service includes 22,677 licensees comprised

of private volunteer or professional fire companies

as well as units under governmental control. The

local government service is currently comprised of

40,512 licensees that are state, county, or municipal

entities that use the radio for official purposes not

covered by other public safety services. There are

7,325 licensees within the forestry service, which

is comprised of licensees from state departments of

conservation and private forest organizations that

set up communications networks among fire

lookout towers and ground crews. The 9,480 state

and local governments are licensed to highway

maintenance service provide emergency and

routine communications to aid other public safety

services to keep main roads safe for vehicular

traffic. The 1,460 licensees in the Emergency

Medical Radio Service (EMRS)

39 47 CFR 1.1162.

40 5 U.S.C. 601(5).

41Licensees in the Citizens Band (CB) Radio

Service, General Mobile Radio Service (GMRS),

Radio Control (R/C) Radio Service and Family

Radio Service (FRS) are governed by subpart D,

subpart A, subpart C, and subpart B, respectively,

of part 95 of the Commission’s rules. 47 CFR

95.401–95.428; 95.1–95.181; 95.201–95.225;

95.191–95,194.

42This service is governed by subpart I of part 22

of the Commission’s rules. See 47 CFR 22.1001–

22.1037.

25. 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. The

Commission has not developed a

definition of small entity specifically

applicable to PLMR licensees due to the

vast array of PLMR users. For the

purpose of determining whether a

licensee is a small business as defined

by the SBA, each licensee would need

to be evaluated within its own business

area.

26. The Commission is unable at this

time to estimate the number of small

businesses that could be impacted by

the rules. However, the Commission’s

1994 Annual Report on PLMR32

indicates that at the end of fiscal year

1994 there were 1,087,267 licensees

operating 12,481,989 transmitters in the

PLMR bands below 512 MHz. Because

any entity engaged in a commercial

activity is eligible to hold a PLMR

license, the proposed rules in this

context could potentially impact every

small business in the United States.

27. Amateur Radio Service. All

Amateur Radio Service licenses are

presumed to be individuals.

Accordingly, no small business

definition applies for this service.

28. Aviation and Marine Radio

Service. Small businesses in the aviation

and marine radio services use a marine

very high frequency (VHF) radio, any

type of emergency position indicating

radio beacon and/or radar, a VHF

aircraft radio, and/or any type of

emergency locator transmitter. The

Commission has not developed a

definition of small entities specifically

applicable to these small businesses.

Therefore, the applicable definition of

small entity is the definition under the

SBA rules for radiotelephone

communications.33

29. Most applicants for recreational

licenses are individuals. Approximately

581,000 ship station licensees and

131,000 aircraft station licensees operate

domestically and are not subject to the

radio carriage requirements of any

statute or treaty. Therefore, for purposes

of our evaluations and conclusions in

this IRFA, we estimate that there may be

at least 712,000 potential licensees that

are individuals or small entities, as that

term is defined by the SBA.

30. Fixed Microwave Services.

Microwave services include common

carrier,34 private-operational fixed,35

and broadcast auxiliary radio services.36

At present, there are approximately

22,015 common carrier fixed licensees

and 61,670 private operational-fixed

licensees and broadcast auxiliary radio

licensees in the microwave services.

The Commission has not yet defined a

small business with respect to

microwave services. For purposes of

this IRFA, we will utilize the SBA’s

definition applicable to radiotelephone

companies—i.e., an entity with no more

than 1,500 persons.37 We estimate, for

this purpose, that all of the Fixed

Microwave licensees (excluding

broadcast auxiliary licensees) would

qualify as small entities under the SBA

definition for radiotelephone

companies.

31. Public Safety Radio Services.

Public Safety radio services include

police, fire, local government, forestry

conservation, highway maintenance,

and emergency medical services.38

There are a total of approximately

127,540 licensees within these services.

Governmental entities 39 as well as

private businesses comprise the

licensees for these services. As

indicated supra in paragraph four of this

IRFA, all governmental entities with

populations of less than 50,000 fall

within the definition of a small entity.40

32. Personal Radio Services. Personal

radio services provide short-range, lowpower radio for personal

communications, radio signaling, and

business communications not provided

for in other services. The services

include the citizen’s band (CB) radio

service, general mobile radio service

(GMRS), radio control radio service, and

family radio service (FRS).41 Inasmuch

as the CB, GMRS, and FRS licensees are

individuals, no small business

definition applies for these services. We

are unable at this time to estimate the

number of other licensees that would

qualify as small under the SBA’s

definition.

33. Offshore Radiotelephone Service.

This service operates on several UHF

TV broadcast channels that are not used

for TV broadcasting in the coastal area

of the states bordering the Gulf of

Mexico.42 At present, there are

approximately 55 licensees in this

service. We are unable at this time to

estimate the number of licensees that

would qualify as small under the SBA’s

definition for radiotelephone

communications.

34. 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 in a Report and Order in GN

Docket No. 96–228, 62 FR 9636, March

3, 1997. The Commission auctioned

geographic area licenses in the WCS

service. In the auction, there were seven

winning bidders that qualified as very

small business entities, and one that

qualified as a small business entity. We

conclude that the number of geographic

area WCS licensees affected includes

these eight entities.

Federal Register / Vol. 66, No. 246 / Friday, December 21, 2001 / Proposed Rules 65871

43See 13 CFR 121.201, SIC code 4812. 44 1992 Census at Firm Size 1–123. 45Teligent acquired the DEMS licenses of

FirstMark, the only licensee other than TRW in the

24 GHz band whose license has been modified to

require relocation to the 24 GHz band.

46 In the Matter of Amendments to Parts 1, 2, 87

and 101 of the Commission’s Rules To License

Fixed Services at 24 GHz, Report and Order, 15 FCC

Rcd at 16967; see also 47 CFR 101.538(a)(1).

47See Letter to Margaret W. Wiener, Deputy

Chief, Auctions and Industry Analysis Division,

Wireless Telecommunications Bureau, Federal

Communications Commission, from Gary M.

Jackson, Assistant Administrator, Small Business

Administration (July 28, 2000).

48See 39 GHz Band Auction Closes; Winning

Bidders of 2,173 Licenses Announced, Public

Notice, DA 00–1035 (May 10, 2000).

49See Letter to Kathleen O’Brien Ham, Chief,

Auctions and Industry Analysis Division, Wireless

Telecommunications Bureau, Federal

Communications Commssion, from Aida Alvarez,

Administrator, Small Business Administration (Feb.

4, 1998).

50See Letter to Daniel B. Phythyon, Chief,

Wireless Telecommunications Bureau, Federal

Communications Commission, from Aida Alvarez,

Administrator, Small Business Administration (Jan.

6.1998).

35. Local Multipoint Distribution

Service. The Commission held two

auctions for licenses in the Local

Multipoint Distribution Services

(LMDS) (Auction No. 17 and Auction

No. 23). For both of these auctions, the

Commission defined a small business as

an entity, together with its affiliates and

controlling principals, having average

gross revenues for the three preceding

years of not more than $40 million in a

Second Report and Order, Order on

Reconsideration, and Fifth Notice of

Proposed Rulemaking in CC Docket No.

92–297, 62 FR 23148, April 29, 1997. A

very small business was defined as an

entity, together with affiliates and

controlling principals, having average

gross revenues for the three preceding

years of not more than $15 million in a

Second Order on Reconsideration in CC

Docket No. 92–297, 62 FR 48787,

September 17, 1997. Of the 144 winning

bidders in Auction Nos. 17 and 23, 125

bidders (87 percent) were small or very

small businesses.

36. 24 GHz—Incumbent 24 GHz

Licensees. The rules that we may later

adopt could 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 Commission did not

develop a definition of small entities

applicable to existing licensees in the 24

GHz band. Therefore, the applicable

definition of small entity is the

definition under the SBA rules for the

radiotelephone industry, providing that

a small entity is a radiotelephone

company employing fewer than 1,500

persons.43 The 1992 Census of

Transportation, Communications and

Utilities, conducted by the Bureau of the

Census, which is the most recent

information available, shows that only

12 radiotelephone firms out of a total of

1,178 such firms that operated during

1992 had 1,000 or more employees.44

This information notwithstanding, we

believe that there are only two licensees

in the 24 GHz band that were relocated

from the 18 GHz band, Teligent 45 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.

37. Future 24 GHz Licensees. With

respect to new applicants in the 24 GHz

band, we have defined ‘‘small business’’

as 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 defined as an entity

that, together with controlling interests

and affiliates, has average gross

revenues not exceeding $3 million for

the preceding three years in a Report

and Order in WT Docket No. 99–327, 66

FR 11113, February 22, 2001.46 The

SBA has approved these definitions.47

The Commission will not know how

many licensees will be small or very

small businesses until the auction, if

required, is held. Even after that, the

Commission will not know how many

licensees will partition their license

areas or disaggregate their spectrum

blocks, if partitioning and

disaggregation are allowed.

38. 39 GHz. The Commission held an

auction (Auction No. 30) for fixed pointto-point microwave licenses in the 38.6

to 40.0 GHz band (39 GHz Band).48 For

this auction, the Commission defined a

small business as an entity, together

with affiliates and controlling interests,

having average gross revenues for the

three preceding years of not more than

$40 million in a Report and Order in ET

Docket No. 95–183; PP Docket No. 93–

253, 63 FR 6079, February 6, 1998 and

also in the Second Notice of Proposed

Rulemaking at 63 FR 3075, January 21,

1998. A very small business was defined

as an entity, together with affiliates and

controlling principals, having average

gross revenues for the three preceding

years of not more than $15 million. The

SBA has approved these definitions.49

Of the 29 winning bidders in Auction

No. 30, 18 bidders (62 percent) were

small business participants.

39. 218–219 MHz Service. The first

auction of 218–219 MHz spectrum

resulted in 170 entities winning licenses

for 595 Metropolitan Statistical Area

(MSA) licenses. Of the 595 licenses, 557

were won by entities qualifying as a

small business. For that auction, we

defined a small business as 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 Fourth

Report and Order in PP Docket No. 93–

253, 59 FR 25825, May 18, 1994. In the

218–219 MHz Report and Order and

Memorandum Opinion and Order at 64

FR 59656, November 3, 1999, we

defined 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 WT Docket No. 98–169. 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 their

affiliates, has average annual gross

revenues not to exceed $3 million for

the preceding three years. These

definitions have been approved by the

SBA.50 We cannot estimate, however,

the number of licenses that will be won

by entities qualifying as small or very

small businesses under our rules in

future auctions of 218–219 MHz

spectrum. Given the success of small

businesses in the previous auction, and

the prevalence of small business in the

subscription television services and

message communications industries, we

assume for purposes of this IRFA that in

future auctions, all of the licenses may

be awarded to small businesses.

D. Description of Projected Reporting,

Recordkeeping, and Other Compliance

Requirements

40. The Quiet Zones NPRM proposes

no additional reporting, recordkeeping

or other compliance measures.

E. Steps Taken To Minimize Significant

Economic Impact on Small Entities and

Significant Alternatives Considered

41. 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

different 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 rules for small entities; (3) the

65872 Federal Register / Vol. 66, No. 246 / Friday, December 21, 2001 / Proposed Rules

51See Notice of Proposed Rulemaking,

paragraphs 4–11.

52See id., paragraph 9.

use of performance, rather than design,

standards; and (4) an exemption from

coverage of the rule, or any part thereof,

for small entities.

42. The purpose of this rulemaking is

to seek comment on possible procedures

for streamlining the regulatory

obligations associated with wireless

applications and facilities that may

implicate the Commission’s defined

Quiet Zones, while still adequately and

fully protecting the various operations

located in the Quiet Zones. One

alternative considered, as suggested by

a commenter,51 is to remove rules and

provisions that restrict or limit activities

of all entities, including small

businesses, in the Quiet Zones. While

evaluating this alternative, the

Commission has carefully considered

the overlying public policy and safety

needs that necessitated maintaining the

Quiet Zones provisions. Therefore,

while the Commission does not intend

to alter the basic protection given to

Quiet Zones, it is willing to examine

and give careful consideration to any

proposals that would reduce or alleviate

the burdens on small entities, as well as

other affected parties.

43. More specifically, the Commission

is considering as an alternative

resuming processing of an application

with Quiet Zone implications if written

consent from the affected Quiet Zone

entity is provided.52 This alternative

could greatly reduce the processing time

for an application submitted by all

entities, including small entities.

Parties, including small entities, are

encouraged to provide additional

alternatives for consideration.

F. Federal Rules That May Duplicate,

Overlap, or Conflict With the Proposed

Rules

None.

III. Ordering Clause

44. Pursuant to the authority of

sections 1, 4(i), 11, 303(g), and 303(r) of

the Communications Act of 1934, as

amended, 47 U.S.C. 151, 154(i), 161,

303(g), and 303(r), that this Notice of

Proposed Rulemaking is ADOPTED.

45. The Commission’s Consumer

Information Bureau, Reference

Information Center, shall send a copy of

the Notice of Proposed Rulemaking,

including the Initial Regulatory

Flexibility Analysis, to the Chief

Counsel for Advocacy of the Small

Business Administration.

46. The Commission’s Consumer

Information Bureau, Reference

Information Center, shall send a copy of

the Notice of Proposed Rulemaking,

including the Initial Regulatory

Flexibility Analysis, to the Chief

Counsel for Advocacy of the Small

Business Administration in accordance

with Sections 603(a) and 604(b) of the

Regulatory Flexibility Act, Public Law

96–354, 94 Stat. 1164, 5 U.S.C.A. 603(a)

and 604(b).

List of Subjects 47 CFR Part 1

Telecommunications.

Federal Communications Commission.

William F. Caton,

Deputy Secretary.

[FR Doc. 01–31411 Filed 12–20–01; 8:45 am]

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FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 73

[DA 01–2812, MM Docket No. 01–302, RM–

10333]

Digital Television Broadcast Service;

Fort Wayne, IN

AGENCY: Federal Communications

Commission.

ACTION: Proposed rule.

SUMMARY: The Commission requests

comments on a petition filed by Indiana

Broadcasting, LLC, licensee of station

WANE–TV, NTSC channel 15, Fort

Wayne, Indiana, proposing the

substitution of DTV channel 31 for

station WANE–TV’s assigned DTV

channel 4. DTV Channel 31 can be

allotted to Fort Wayne, Indiana, in

compliance with the principle

community coverage requirements of

Section 73.625(a) at reference

coordinates (41–05–38 N. and 85–10–48

W.). However, since the community of

Fort Wayne is 400 kilometers within the

U.S.-Canadian border, concurrence from

the Canadian government must be

obtained for this allotment. As

requested, we propose to allot DTV

Channel 31 to Fort Wayne with a power

of 82 and a height above average terrain

(HAAT) of 253 meters.

DATES: Comments must be filed on or

before January 28, 2002, and reply

comments on or before February 12,

2002.

ADDRESSES: Federal Communications

Commission, 445 12th Street, SW.,

Room TW–A325, Washington, DC

20554. In addition to filing comments

with the FCC, interested parties should

serve the petitioner, or its counsel or

consultant, as follows: William H. Fitz,

Covington & Burling, 1201 Pennsylvania

Avenue, NW., Washington, DC 20004

(Counsel for Indiana Broadcasting, LLC).

FOR FURTHER INFORMATION CONTACT: Pam

Blumenthal, Mass Media Bureau, (202)

418–1600.

SUPPLEMENTARY INFORMATION: This is a

synopsis of the Commission’s Notice of

Proposed Rule Making, MM Docket No.

01–302, adopted December 4, 2001, and

released December 6, 2001. The full text

of this document is available for public

inspection and copying during regular

business hours in the FCC Reference

Information Center, Portals II, 445 12th

Street, S.W., Room CY–A257,

Washington, DC, 20554. This document

may also be purchased from the

Commission’s duplicating contractor,

Qualex International, Portals II, 445

12th Street, SW., Room CY–B402,

Washington, DC, 20554, telephone 202–

863–2893, facsimile 202–863–2898, or

via e-mail qualexint@aol.com.

Provisions of the Regulatory

Flexibility Act of 1980 do not apply to

this proceeding.

Members of the public should note

that from the time a Notice of Proposed

Rule Making is issued until the matter

is no longer subject to Commission

consideration or court review, all ex

parte contacts are prohibited in

Commission proceedings, such as this

one, which involve channel allotments.

See 47 CFR 1.1204(b) for rules

governing permissible ex parte contacts.

For information regarding proper

filing procedures for comments, see 47

CFR 1.415 and 1.420.

List of Subjects in 47 CFR Part 73

Television, Digital television

broadcasting.

For the reasons discussed in the

preamble, the Federal Communications

Commission proposes to amend 47 CFR

part 73 as follows:

PART 73—TELEVISION BROADCAST

SERVICES

1. The authority citation for part 73

continues to read as follows:

Authority: 47 U.S.C. 154, 303, 334, and

336.

§ 73.622 [Amended]

2. Section 73.622(b), the Table of

Digital Television Allotments under

Indiana is amended by removing DTV

Channel 4 and adding DTV Channel 31

at Fort Wayne.

Federal Communications Commission.

Barbara A. Kreisman,

Chief, Video Services Division, Mass Media

Bureau.

[FR Doc. 01–31458 Filed 12–20–01; 8:45 am]

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