[Federal Register: September 12, 2003 (Volume 68, Number 177)]
[Proposed Rules]               
[Page 53702-53705]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12se03-21]                         

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 25

[IB Docket Nos. 02-34 and 00-248, FCC 03-154]

 
Satellite License Procedures

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Commission invites comment on extending 
electronic filing requirements to all satellite and earth station-
related filings. The Commission also proposes extending a streamlined 
license modification procedure to Direct Broadcast Satellite (DBS) and 
Digital Audio Radio Satellite (DARS) licensees. The intended purpose of 
this proceeding is to expedite the satellite and earth station license 
procedure, and to streamline the DBS and DARS modification procedure.

DATES: Comments are due on or before October 14, 2003. Reply comments 
are due on or before November 12, 2003.

ADDRESSES: All filings must be sent to the Commission's Secretary, 
Marlene H. Dortch, Office of the Secretary, Federal Communications 
Commission, The Portals, 445 Twelfth Street, SW., Room TW-A325, 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Steven Spaeth, Satellite Division, 
International Bureau, (202) 418-1539. For additional information 
concerning the information collection(s) contained in this document, 
contact Judy Boley Herman at 202-418-0214, or via the Internet at 
jbHerman@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second 
Further Notice of Proposed Rulemaking, adopted June 26, 2003 and 
released July 8, 2003. The full text of this Commission decision is 
available for inspection and copying during normal business hours in 
the FCC Public Reference Room, 445 Twelfth Street, SW., Room CY-A257, 
Washington, DC 20554. The complete text of this decision may also be 
purchased from the Commission's copy contractor, Qualex International, 
Portals II, 445 Twelfth Street, SW., Room CY-B402, Washington, DC 
20554.
    Comments may be filed using the Commission's Electronic Comment 
Filing System (ECFS) or by filing paper copies. See Electronic Filing 
of Documents in Rulemaking Proceedings, (63 FR 2421 (May 1, 1998)). 
Comments filed through the 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 an electronic comment 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 .'' A sample form and directions will be sent in 
reply.

[[Page 53703]]

    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 
appear in the caption of this proceeding, commenters must submit two 
additional copies for each additional docket or rulemaking number.

Paperwork Reduction Act

    This Second Further NPRM contains proposed new and modified 
information collections. The Commission, as part of its continuing 
effort to reduce paperwork burdens, invites the general public and the 
Office of Management and Budget (OMB) to comment on the information 
collection(s) contained in this NPRM, as required by the Paperwork 
Reduction Act of 1995, Public Law 104-13. Public and agency comments 
are due at the same time as other comments on this NPRM; OMB 
notification of action is due October 14, 2003. Comments should 
address: (a) Whether the proposed collection of information is 
necessary for the proper performance of the functions of the 
Commission, including whether the information shall have practical 
utility; (b) the accuracy of the Commission's burden estimates; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (d) ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology.

Summary of Further Notice of Proposed Rulemaking

    In previous Reports and Orders, the Commission has adopted 
mandatory electronic filing requirements for all space station 
applicants other than DBS and DARS applicants. The Commission also 
requires mandatory electronic filing requirements for routine earth 
station license applicants, and for earth station assignments and 
transfer of control applications. Parties filing petitions to deny 
routine earth station applications, or other pleadings in response to 
routine earth station applications, are also required to file 
electronically. In this Second Further Notice of Proposed Rulemaking, 
the Commission proposes to extend mandatory electronic filing to all 
other space station and earth station-related filings.
    In addition, in the Second Report and Order in IB Docket No. 02-34, 
the Commission adopted a streamlined procedure for satellite license 
modifications associated with fleet management, but precluded DBS and 
DARS licensees from using this streamlined procedure. In this Second 
Further NPRM, the Commission invites comment on extending the satellite 
fleet management modification procedure to DBS and DARS licenses.

Initial Regulatory Flexibility Analysis

    As required by the Regulatory Flexibility Act (RFA),\1\ the 
Commission has prepared this present Initial Regulatory Flexibility 
Analysis (IRFA) of the possible significant economic impact on small 
entities by the policies and rules proposed in this Notice of Proposed 
Rulemaking. Written public comments are requested on this IRFA.
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    \1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et seq., has 
been amended by the Contract With America Advancement Act of 1996, 
Public Law 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the 
CWAAA is the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA).
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    Comments must be identified as responses to the IRFA and must be 
filed by the deadlines for comments on the Notice of Proposed 
Rulemaking provided above. The Commission will send a copy of the 
Notice of Proposed Rulemaking, including this IRFA, to the Chief 
Counsel for Advocacy of the Small Business Administration. See 5 U.S.C. 
603(a). In addition, the Notice of Proposed Rulemaking and IRFA (or 
summaries thereof) will be published in the Federal Register. See id.
    Need for, and Objectives of, the Proposed Rules: In this NPRM, we 
propose to revise our rules to require electronic filing for those 
earth station and space station license applications for which the 
Commission has not adopted an electronic filing requirement, and 
comments filed in response to those applications. We propose these 
mandatory electronic filing requirements to increase the number of 
satellite and earth station license applicants and associated parties 
may file documents with greater speed and efficiency. The system will 
also make license information more accessible to the Commission's 
staff, as well as the satellite industry and the general public. 
Furthermore, it is expected that the cost of filing applications or 
obtaining information will be reduced.
    Legal Basis: The proposed action is supported by sections 4(i), 
7(a), 303(c), 303(f), 303(g), and 303(r) of the Communications Act of 
1934, as amended, 47 U.S.C. 154(i), 157(a), 303(c), 303(f), 303(g), 
303(r).
    Description and Estimate of the Number of Small Entities to Which 
the Proposed Rules May Apply: 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.\2\ The RFA generally defines the term ``small entity `` as 
having the same meaning as the terms ``small business,'' ``small 
organization,'' and ``small governmental jurisdiction.'' \3\ In 
addition, the term ``small business'' has the same meaning as the term 
``small business concern'' under the Small Business Act.\4\ A small 
business concern is one which: (1) Is independently owned and operated; 
(2) is not dominant in its field of operation; and (3) satisfies any 
additional criteria established by the Small Business Administration 
(SBA).\5\ A small organization is generally ``any not-for-profit 
enterprise which is independently owned and operated and is not 
dominant in its field.'' \6\ Nationwide, as of 1992, there were 
approximately 275,801 small organizations.\7\ ``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.'' \8\ As of 1992, there were 
approximately 85,006 such jurisdictions in the United States.\9\ This 
number includes 38,978 counties, cities, and towns; of these, 37,566, 
or 96 percent, have populations of fewer than 50,000.\10\ The Census 
Bureau estimates that this ratio is approximately accurate for all 
governmental entities. Thus, of the 85,006 governmental entities, we 
estimate that 81,600 (91 percent) are small entities. Below, we further 
describe and estimate the number of small entity licensees that may be 
affected by the proposed rules, if adopted.
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    \2\ 5 U.S.C. 603(b)(3).
    \3\ 5 U.S.C. 601(6).
    \4\ 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 term which are 
appropriate to the activities of the agency and publishes such 
definition(s) in the Federal Register.'' 5 U.S.C. 601(3).
    \5\ Small Business Act, 15 U.S.C. 632 (1996).
    \6\ 5 U.S.C. 601(4).
    \7\ 1992 Economic Census, U.S. Bureau of the Census, Table 6 
(special tabulation of data under contract to Office of Advocacy of 
the U.S. Small Business Administration).
    \8\ 5 U.S.C. 601(5).
    \9\ U.S. Dept. of Commerce, Bureau of the Census, ``1992 Census 
of Governments.''
    \10\ Id.
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    The rules proposed in this Notice of Proposed Rulemaking, if 
adopted, would affect satellite operators and earth station operators 
for whom we have not adopted an electronic filing requirement. These 
applicants include Direct Broadcast Satellite (DBS), Digital Audio 
Radio Satellite (DARS) satellite applications, all earth station 
applicants other than ``routine'' C-band and Ku-

[[Page 53704]]

band earth station applicants, and parties filing pleadings in response 
to these applications.
    1. DBS operators: Because DBS provides subscription services, DBS 
falls within the SBA-recognized definitions of ``Cable Networks'' and 
``Cable and Other Program Distribution.'' \11\ These definitions 
provide that small entities are ones with $11.0 million or less in 
annual receipts.\12\ Small businesses, i.e. ones with less than $11.0 
million in annual receipts, do not have the financial ability to become 
DBS licensees because of the high implementation costs associated with 
satellite services. Because this is an established service, with 
limited spectrum and orbital resources for assignment, we estimate that 
no more than 15 entities will be Commission licensees providing these 
services. In addition, because of the high implementation costs and the 
limited spectrum resources we believe that none of the 15 licensees 
will be small entities. We expect that no small entities will be 
impacted by this rulemaking. Therefore, we certify that the proposed 
requirements of the Notice of Proposed Rulemaking, if adopted, will not 
have a significant economic impact on a substantial number of small 
entities.
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    \11\ 13 CFR 121.201, North American Industry Classification 
Systems (NAICS) codes 513210 and 513220.
    \12\ 13 CFR 121.201, NAICS codes 513210 and 513220.
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    2. DARS operators: The Commission has not developed a definition of 
small entities applicable to geostationary or non-geostationary orbit 
broadcast satellite operators. Therefore, the applicable definition of 
small entity is the definition under Small Business Administration 
(SBA) rules applicable to the Communications Services, Not Elsewhere 
classified. This definition provides that a small entity is one with 
$11.0 million or less in annual receipts.\13\ There are only two SDARS 
providers authorized to provide service in the DARS spectrum band, XM 
Radio, Inc., and Sirius Satellite Radio, Inc. While neither has 
implemented nationwide service, both entities have financing of over 
$100 million. In addition, the DARS licensees have significant 
partnership interests with large corporations: General Motors in XM 
Radio, Inc., and DiamlerChrysler in Sirius Satellite Radio. Because of 
the above and the high implementation and operating costs for SDARS 
systems, we do not believe either DARS licensee qualifies as a small 
entity.
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    \13\ 13 CFR 121.201, NAICS Code 4899.
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    3. Fixed Satellite Transmit/Receive Earth Stations. As of the 
adoption date of this NPRM, there are about 10480 authorized 
operational fixed satellite transmit/receive earth stations. Of these, 
approximately 6875 are routine earth stations in the conventional C-
band, and about 3469 are routine earth stations in the conventional Ku-
band. Thus, only about 136 fixed satellite service earth stations, or 
between 1 and 2 percent, are ``non-routine'' earth stations. 
Accordingly, we estimate that between 1 and 2 percent of future earth 
station license applicants will be ``non-routine'' applicants 
potentially affected by the rules proposed in the NPRM. We do not 
request or collect annual revenue information, and thus are unable to 
estimate the number of these earth stations that would constitute a 
small business under the SBA definition.
    4. Mobile Satellite Earth Stations. As of the adoption date of this 
NPRM, we have issued about 32 licenses for mobile satellite service 
earth stations currently in operation. We do not request or collect 
annual revenue information, and thus are unable to estimate the number 
of these earth stations that would constitute a small business under 
the SBA definition.
    5. Auxiliary, Special Broadcast and other program distribution 
services. This service involves a variety of transmitters, generally 
used to relay broadcast programming to the public (through translator 
and booster stations) or within the program distribution chain (from a 
remote news gathering unit back to the station). The Commission has not 
developed a definition of small entities applicable to broadcast 
auxiliary licensees. Therefore, the applicable definition of small 
entity is the definition under the Small Business Administration (SBA) 
rules applicable to radio broadcasting stations (NAICS 513112) and 
television broadcasting stations (NAICS 513120). These definitions 
provide that a small entity is one with either $6.0 million or less in 
annual receipts for a radio broadcasting station or $12.0 million in 
annual receipts for a TV station. See 13 CFR 121.201. As of September 
1999, there were 3,237 FM translators and boosters, 4913 TV 
translators.\14\ The FCC does not collect financial information on any 
broadcast facility and the Department of Commerce does not collect 
financial information on these auxiliary broadcast facilities. We 
believe, however, that most, if not all, of these auxiliary facilities 
could be classified as small businesses by themselves. We also 
recognize that most translators and boosters are owned by a parent 
station which, in some cases, would be covered by the revenue 
definition of small business entity discussed above. These stations 
would likely have annual revenues that exceed the SBA maximum to be 
designated as a small business (as noted, either $6.0 million for a 
radio station or $12.0 million for a TV station). Furthermore, they do 
not meet the Small Business Act's definition of a ``small business 
concern'' because they are not independently owned and operated.
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    \14\ FCC News Release, Broadcast Station Totals as of September 
30, 1999, No. 71831 (Jan. 21, 1999).
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    Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements: None of the proposed rules in this notice are 
expected to increase the reporting, record keeping and other compliance 
requirements of any party.
    Steps Taken to Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered: 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 or reporting requirements or timetables that take into 
account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance or 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities. 5 
U.S.C. 603(c).
    We have attempted not to foreclose any option.
    Federal Rules that May Duplicate, Overlap, or Conflict With the 
Proposed Rules: None.

Ordering Clauses

    Pursuant to sections 4(i), 7(a), 303(c), 303(f), 303(g), and 303(r) 
of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 
157(a), 303(c), 303(f), 303(g), 303(r), that this Second Further Notice 
of Proposed Rulemaking in IB Docket No. 02-34 and Second Further Notice 
of Proposed Rulemaking in IB Docket No. 00-248 is hereby adopted.
    The Consumer Information Bureau, Reference Information Center, 
shall send a copy of this Second Further Notice of Proposed Rulemaking 
in IB Docket No. 02-34 and Second Further Notice of Proposed Rulemaking 
in IB Docket No. 00-248, including the Initial Regulatory Flexibility 
Analysis, to the Chief Counsel for Advocacy of the Small Business 
Administration.


[[Page 53705]]


    Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 03-23315 Filed 9-11-03; 8:45 am]

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