[Federal Register Volume 72, Number 118 (Wednesday, June 20, 2007)]
[Proposed Rules]
[Pages 33948-33955]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-11404]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 9 and 20
[PS Docket No. 07-114; WC Docket No. 05-196; FCC 07-108]
Wireless E911 Location Accuracy Requirements; E911 Requirements
for IP-Enabled Service Providers
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: In this document the FCC seeks comment on several issues
relating to Enhanced 911 (E911) location accuracy and reliability
requirements, in order to ensure that E911 service meets the needs of
public safety and the American people, while taking into account the
evolution in the use of wireless devices and the further development of
location technologies.
DATES: Written comments on the geographic scope of the current wireless
location accuracy requirements and the question of deferring
enforcement of Sec. 20.18(h) at the PSAP service area level are due on
or before July 5, 2007 and reply comments are due on or before July 11,
2007. Written comments on all other questions raised in the NPRM are
due on or before August 20, 2007 and reply comments are due on or
before September 18, 2007.
ADDRESSES: You may submit comments, identified by PS Docket No. 07-114
and WC Docket No. 05-196, by any of the identified 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.
Mail: Follow the instructions for paper filers below.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by e-mail: [email protected] or phone 202-418-
0530 or TTY: 202-418-0432.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: Carol Simpson, Policy Division, Public
Safety and Homeland Security Bureau, (202) 418-2391, or TTY (202) 418-
7233.
SUPPLEMENTARY INFORMATION: This is a summary of the Federal
Communications Commission's Notice of Proposed Rulemaking (NPRM) in PS
Docket No. 07-114 and WC Docket No. 05-196, FCC 07-108, adopted on May
31, 2007, and released on June 1, 2007. In section III.A of the NPRM,
the FCC seeks comment on its tentative conclusion to adopt a proposal
by the Association of Public-Safety Communications Officials-
International, Inc. (APCO) to clarify Sec. 20.18(h) of the
Commission's rules, which specifies the standards for wireless E911
Phase II location accuracy and reliability, to require licensees
subject to this rule to satisfy these standards at a geographical level
defined by the coverage area of each respective local Public Safety
Answering Point (PSAP). We also grant APCO's request for an expedited
consideration of its proposal, and seek comment on whether, if we adopt
this tentative conclusion, we should defer enforcement of Sec.
20.18(h) to allow wireless carriers to come into compliance.
In section III.B, of the NPRM, the FCC seeks comment on a number of
other tentative conclusions and proposals,
[[Page 33949]]
including: (i) If we were to require licensees to meet the standards of
Sec. 20.18(h) at the PSAP level, and decide to defer enforcement of
Sec. 20.18(h) as so defined, how long we should defer enforcement;
(ii) the tentative conclusion to establish a single location accuracy
requirement irrespective of technology; (iii) how advances in location
technologies and the use of hybrid technologies that employ both
handset and network-based technologies should impact our analysis; (iv)
whether a more stringent accuracy requirement should be adopted; (v)
how and by what date to require compliance with a uniform and/or new
accuracy requirement; (vi) the methodology for accuracy compliance
testing, particularly when wireless phones are used indoors and in
rural areas; (vii) the tentative conclusions to establish a mandatory
schedule for accuracy testing and to require carriers to automatically
provide accuracy data to PSAPs; (viii) whether to require carriers to
provide E911 location information when a wireless phone roams to an
area that uses a different location technology or in which there are no
automatic roaming agreements between carriers; and (ix) the tentative
conclusion that to the extent that an interconnected voice over
Internet Protocol (VoIP) service may be used in more than one location,
service providers must employ an automatic location technology that
meets the same accuracy standards that apply to services provided by
circuit-switched commercial mobile radio services (CMRS) carriers.
I. Procedural Matters
A. Ex Parte Rules--Permit-But-Disclose Proceeding
1. This proceeding shall be treated as a ``permit-but-disclose''
proceeding in accordance with the Commission's ex parte rules. Persons
making oral ex parte presentations are reminded that memoranda
summarizing the presentations must contain summaries of the substance
of the presentations and not merely a listing of the subjects
discussed. More than a one- or two-sentence description of the views
and arguments presented is generally required. Other rules pertaining
to oral and written presentations are set forth in Sec. 1.1206(b) of
the Commission's rules as well.
B. Comment Dates
2. Pursuant to Sec. Sec. 1.415 and 1.419 of the Commission's
rules, 47 CFR 1.415, 1.419, interested parties may file comments and
reply comments on or before the dates indicated on the first page of
this document. Comments may be filed using (1) the FCC'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 24,121 (1998).
3. 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.
4. For ECFS filers, if multiple dockets 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 and e-mail to [email protected], and include the
following words in the body of the message, ``get form.'' A sample form
and directions will be sent in response.
5. 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.
6. 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.
7. The Commission's contractor will receive hand-delivered or
messenger-delivered 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.
8. 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.
9. U.S. Postal Service first-class, Express, and Priority mail must
be addressed to 445 12th Street, SW., Washington, DC 20554.
10. Comments and reply comments and any other filed documents in
this matter may be obtained from Best Copy and Printing, Inc., in
person at 445 12th Street, SW., Room CY-B402, Washington, DC 20554, via
telephone at (202) 488-5300, via facsimile at (202) 488-5563, or via e-
mail at [email protected]. The pleadings will be also available for
public inspection and copying during regular business hours in the FCC
Reference Information Center, Room CY-A257, 445 12th Street, SW.,
Washington, DC 20554, and through the Commission's Electronic Filing
System (ECFS) accessible on the Commission's Web site, http://www.fcc.gov/cgb/ecfs.
11. To request materials in accessible formats for people with
disabilities (braille, large print, electronic files, audio format),
send an e-mail to [email protected] or call the Consumer & Governmental
Affairs Bureau at 202-418-0530 (voice), 202-418-0432 (TTY).
12. Commenters who file information that they believe is should be
withheld from public inspection may request confidential treatment
pursuant to Sec. 0.459 of the Commission's rules. Commenters should
file both their original comments for which they request
confidentiality and redacted comments, along with their request for
confidential treatment. Commenters should not file proprietary
information electronically. Even if the Commission grants confidential
treatment, information that does not fall within a specific exemption
pursuant to the Freedom of Information Act (FOIA) must be publicly
disclosed pursuant to an appropriate request. See 47 CFR 0.461; 5
U.S.C. 552. We note that the Commission may grant requests for
confidential treatment either conditionally or unconditionally. As
such, we note that the Commission has the discretion to release
information on public interest grounds that does fall within the scope
of a FOIA exemption.
C. Paperwork Reduction Act
13. 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).
[[Page 33950]]
II. Initial Regulatory Flexibility Analysis
14. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA), the Commission has prepared this present Initial
Regulatory Flexibility Analysis (IRFA) of the possible significant
economic impact on a substantial number of small entities by the
policies and rules proposed in this NPRM. Written public comments are
requested on this IRFA. Comments must be identified as responses to the
IRFA and must be filed by the deadlines for comments on the first page
of the Notice. The Commission will send a copy of the Notice, including
this IRFA, to the Chief Counsel for Advocacy of the Small Business
Administration (SBA). In addition, the Notice and IRFA (or summaries
thereof) will be published in the Federal Register.
Need for, and Objectives of, the Proposed Rules
15. In the Notice, we seek comment on how to best ensure that
public safety answering points (PSAPs) receive location information
that is as accurate as possible for all wireless E911 calls. The Notice
also asks whether and to what extent providers of interconnected voice
over Internet Protocol (VoIP) services should be required to provide
automatic location identification (ALI), and whether they should be
subject to the same location accuracy requirements as providers of
circuit-switched commercial mobile radio services (CMRS). The objective
is to ensure that PSAPs receive reliable and accurate location
information irrespective of the location of the caller or the
technology that may be used.
16. The Notice tentatively concludes that wireless carriers must
comply with Sec. 20.18(h) of the Commission's rules, which sets forth
the standards for Phase II wireless E911 location accuracy and
reliability, at the PSAP service area level. This tentative conclusion
responds to a petition for declaratory ruling filed by the Association
of Public-Safety Communications Officials-International, Inc. (APCO)
expressing concern that by measuring and testing location accuracy over
geographic areas larger than PSAP service areas, a wireless carrier can
assert that it satisfies the requirements of Sec. 20.18(h) even when
it is not meeting the location accuracy requirements in substantial
segments of its service area. In recognition of the fact that many
carriers are not currently measuring and testing location accuracy at
the PSAP level, the Notice seeks comment on whether--and for what
length of time--the Commission should defer enforcement of Sec.
20.18(h) if it adopts the tentative conclusion to require compliance at
the PSAP level.
17. The Notice explores other possible ways to improve wireless
E911 location accuracy and reliability. The item tentatively concludes
that the public interest would be better served by a single,
technology-neutral location accuracy requirement for wireless E911
service, rather than the separate accuracy requirements for network-
based and handset-based location technologies that are currently in
place. In light of this tentative conclusion, the Notice seeks comment
on what an appropriate uniform accuracy standard would be, what level
of accuracy is possible with current location technologies, whether
hybrid solutions that employ both network-based and handset-based
location technologies can produce improved location accuracy, and how
long carriers should be given to come into compliance if the Commission
adopts a new, uniform location accuracy standard.
18. The Notice tentatively concludes that the Commission will
establish a mandatory schedule for accuracy testing, and that carriers
should automatically provide accuracy data to PSAPs. The Notice seeks
comment on these tentative conclusions, and also seeks comment on
whether the Commission should require wireless carriers to deliver
location information for ``roaming'' 911 calls placed by another
carrier's customers.
19. With respect to interconnected VoIP, the Notice seeks comment
on whether and to what extent providers of interconnected VoIP services
should be required to provide automatic location identification, or
ALI, and whether they should be subject to the same location accuracy
requirements as providers of circuit-switched CMRS. The Notice
tentatively concludes that to the extent that an interconnected VoIP
service may be used in more than one location, providers must employ an
automatic location technology that meets the same accuracy standards
that apply to CMRS carriers.
Legal Basis
20. The legal basis for any action that may be taken pursuant to
this Notice is contained in sections 4(i) and 332 of the Communications
Act of 1934, as amended, 47 U.S.C. 154(i), 332.
Description and Estimate of the Number of Small Entities to Which the
Proposed Rules Will Apply
21. 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. 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 Small Business
Administration (SBA).
Telecommunications Service Entities, Wireless Telecommunications
Service Providers
22. Below, for those services subject to auctions, we note 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.
23. Cellular Licensees. The SBA has developed a small business size
standard for wireless firms within the broad economic census category
``Cellular and Other Wireless Telecommunications.'' Under this SBA
category, a wireless business is small if it has 1,500 or fewer
employees. 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
category and size standard, the great majority of firms can be
considered small. Also, according to Commission data, 437 carriers
reported that they were engaged in the provision of cellular service,
Personal Communications Service (PCS), or Specialized Mobile Radio
(SMR) Telephony services, which are placed together in the data. We
have estimated that 260 of these are small, under the SBA small
business size standard.
24. Common Carrier Paging. The SBA has developed a small business
size standard for wireless firms within the broad economic census
category, ``Cellular and Other Wireless Telecommunications.'' Under
this SBA category, a wireless business is small if it has 1,500 or
fewer employees. For the census category of Paging, Census
[[Page 33951]]
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.
In the Paging Third Report and Order, we developed 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 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. The SBA has approved these small
business size standards. An auction of Metropolitan Economic Area
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. Also, according to Commission data,
375 carriers reported that they were engaged in the provision of paging
and messaging services. Of those, we estimate that 370 are small, under
the SBA-approved small business size standard.
25. Wireless Telephony. Wireless telephony includes cellular,
personal communications services (PCS), and specialized mobile radio
(SMR) telephony carriers. As noted earlier, the SBA has developed a
small business size standard for ``Cellular and Other Wireless
Telecommunications'' services. Under that SBA small business size
standard, a business is small if it has 1,500 or fewer employees.
According to Commission data, 445 carriers reported that they were
engaged in the provision of wireless telephony. We have estimated that
245 of these are small under the SBA small business size standard.
26. 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
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 re-auctioned 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.
27. Narrowband Personal Communications Services. To date, two
auctions of narrowband personal communications services (PCS) licenses
have been conducted. For purposes of the two auctions that have already
been held, ``small businesses'' were entities with average gross
revenues for the prior three calendar years of $40 million or less.
Through these auctions, the Commission has awarded a total of 41
licenses, out of which 11 were obtained by small businesses. To ensure
meaningful participation of small business entities in future auctions,
the Commission has 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. In the future, the
Commission will auction 459 licenses to serve Metropolitan Trading
Areas (MTAs) and 408 response channel licenses. There is also one
megahertz of narrowband PCS spectrum that has been held in reserve and
that the Commission has not yet decided to release for licensing. The
Commission cannot predict accurately the number of licenses that will
be awarded to small entities in future auctions. However, four of the
16 winning bidders in the two previous narrowband PCS auctions were
small businesses, as that term was defined. The Commission assumes, for
purposes of this analysis 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.
28. Rural Radiotelephone Service. The Commission has not adopted a
size standard for small businesses specific to the Rural Radiotelephone
Service. A significant subset of the Rural Radiotelephone Service is
the Basic Exchange Telephone Radio System (BETRS). The Commission uses
the SBA's small business size standard applicable to ``Cellular and
Other Wireless Telecommunications,'' i.e., an entity employing no more
than 1,500 persons. There are approximately 1,000 licensees in the
Rural Radiotelephone Service, and the Commission estimates that there
are 1,000 or fewer small entity licensees in the Rural Radiotelephone
Service that may be affected by the rules and policies adopted herein.
29. Air-Ground Radiotelephone Service. The Commission has not
adopted a small business size standard specific to the Air-Ground
Radiotelephone Service. We will use SBA's small business size standard
applicable to ``Cellular and Other Wireless Telecommunications,'' i.e.,
an entity employing no more than 1,500 persons. There are approximately
100 licensees in the Air-Ground Radiotelephone Service, and we estimate
that almost all of them qualify as small under the SBA small business
size standard.
30. Offshore Radiotelephone Service. This service operates on
several UHF television broadcast channels that are not used for
television broadcasting in the coastal areas of states bordering the
Gulf of Mexico. There are presently approximately 55 licensees in this
service. We are unable to estimate at this time the number of licensees
that would qualify as small under the SBA's small business size
standard for ``Cellular and Other Wireless Telecommunications''
services. Under that SBA small business size standard, a business is
small if it has 1,500 or fewer employees.
[[Page 33952]]
Wireline Carriers and Service Providers
31. The SBA has developed a small business size standard for
wireline firms within the broad economic census category, ``Wired
Telecommunications Carriers.'' Under this category, the SBA deems a
wireline business to be small if it has 1,500 or fewer employees.
Census Bureau data for 2002 show that there were 2,432 firms in this
category that operated for the entire year. Of this total, 2,395 firms
had employment of 999 or fewer employees, and 37 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.
32. We have included small incumbent local exchange carriers in
this present RFA analysis. As noted above, a ``small business'' under
the RFA is one that, inter alia, meets the pertinent small business
size standard (e.g., a telephone communications business having 1,500
or fewer employees), and ``is not dominant in its field of operation.''
The SBA's Office of Advocacy contends that, for RFA purposes, small
incumbent local exchange carriers are not dominant in their field of
operation because any such dominance is not ``national'' in scope. We
have therefore included small incumbent local exchange carriers in this
RFA analysis, although we emphasize that this RFA action has no effect
on Commission analyses and determinations in other, non-RFA contexts.
33. Incumbent Local Exchange Carriers (LECs). Neither the
Commission nor the SBA has developed a small business size standard
specifically for incumbent local exchange services. The appropriate
size standard under SBA rules is for the category Wired
Telecommunications Carriers. Under that size standard, such a business
is small if it has 1,500 or fewer employees. According to Commission
data, 1,303 carriers have reported that they are engaged in the
provision of incumbent local exchange services. Of these 1,303
carriers, an estimated 1,020 have 1,500 or fewer employees and 283 have
more than 1,500 employees. Consequently, the Commission estimates that
most providers of incumbent local exchange service are small businesses
that may be affected by our action.
34. Competitive Local Exchange Carriers, Competitive Access
Providers (CAPs), Shared-Tenant Service Providers, and Other Local
Service Providers. Neither the Commission nor the SBA has developed a
small business size standard specifically for these service providers.
The appropriate size standard under SBA rules is for the category Wired
Telecommunications Carriers. Under that size standard, such a business
is small if it has 1,500 or fewer employees. According to Commission
data, 769 carriers have reported that they are engaged in the provision
of either competitive access provider services or competitive local
exchange carrier services. Of these 769 carriers, an estimated 676 have
1,500 or fewer employees and 93 have more than 1,500 employees.
In addition, 12 carriers have reported that they are ``Shared-
Tenant Service Providers,'' and all 12 are estimated to have 1,500 or
fewer employees. In addition, 39 carriers have reported that they are
``Other Local Service Providers.'' Of the 39, an estimated 38 have
1,500 or fewer employees and one has more than 1,500 employees.
Consequently, the Commission estimates that most providers of
competitive local exchange service, competitive access providers,
``Shared-Tenant Service Providers,'' and ``Other Local Service
Providers'' are small entities that may be affected by our action.
35. 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, 143 carriers have reported
that they are engaged in the provision of local resale services. Of
these, an estimated 141 have 1,500 or fewer employees and two 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.
36. 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, 770 carriers have reported
that they are engaged in the provision of toll resale services. Of
these, an estimated 747 have 1,500 or fewer employees and 23 have more
than 1,500 employees. Consequently, the Commission estimates that the
majority of toll resellers are small entities that may be affected by
our action.
37. Payphone Service Providers (PSPs). Neither the Commission nor
the SBA has developed a small business size standard specifically for
payphone services 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, 613 carriers have reported
that they are engaged in the provision of payphone services. Of these,
an estimated 609 have 1,500 or fewer employees and four have more than
1,500 employees. Consequently, the Commission estimates that the
majority of payphone service providers are small entities that may be
affected by our action.
38. 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, 316 carriers have
reported that they are engaged in the provision of interexchange
service. Of these, an estimated 292 have 1,500 or fewer employees and
24 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.
39. 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 20 have 1,500 or fewer employees and three have more than
1,500 employees. Consequently, the Commission estimates that the
majority of OSPs are small entities that may be affected by our action.
40. 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, 89 carriers have reported that they are
engaged in the provision of prepaid calling cards. Of these, 88 are
estimated to have 1,500 or fewer employees and one has more than 1,500
employees. Consequently, the Commission estimates that all or the
majority of
[[Page 33953]]
prepaid calling card providers are small entities that may be affected
by our action.
41. 800 and 800-Like Service Subscribers. Neither the Commission
nor the SBA has developed a small business size standard specifically
for 800 and 800-like service (``toll free'') subscribers. 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. The most reliable source
of information regarding the number of these service subscribers
appears to be data the Commission collects on the 800, 888, and 877
numbers in use. According to our data, at the end of January, 1999, the
number of 800 numbers assigned was 7,692,955; the number of 888 numbers
assigned was 7,706,393; and the number of 877 numbers assigned was
1,946,538. We do not have data specifying the number of these
subscribers that are not independently owned and operated or have more
than 1,500 employees, and thus are unable at this time to estimate with
greater precision the number of toll free subscribers that would
qualify as small businesses under the SBA size standard. Consequently,
we estimate that there are 7,692,955 or fewer small entity 800
subscribers; 7,706,393 or fewer small entity 888 subscribers; and
1,946,538 or fewer small entity 877 subscribers.
International Service Providers
42. The Commission has not developed a small business size standard
specifically for providers of international service. The appropriate
size standards under SBA rules are for the two broad census categories
of ``Satellite Telecommunications'' and ``Other Telecommunications.''
Under both categories, such a business is small if it has $13.5 million
or less in average annual receipts.
43. The first category of 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.'' 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, we estimate that the majority of
Satellite Telecommunications firms are small entities that might be
affected by our action.
44. 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.'' 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, 303 firms had annual
receipts of under $10 million and 15 firms had annual receipts of $10
million to $24,999,999. Consequently, we estimate that the majority of
Other Telecommunications firms are small entities that might be
affected by our action.
Cable and OVS Operators
45. Cable and Other Program Distribution. The Census Bureau defines
this category as follows: ``This industry comprises establishments
primarily engaged as third-party distribution systems for broadcast
programming. The establishments of this industry deliver visual, aural,
or textual programming received from cable networks, local television
stations, or radio networks to consumers via cable or direct-to-home
satellite systems on a subscription or fee basis. These establishments
do not generally originate programming material.'' The SBA has
developed a small business size standard for Cable and Other Program
Distribution, which is: 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 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, under this size standard, the majority of firms can
be considered small.
46. 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.
47. 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. We note 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 we are unable to estimate more accurately the
number of cable system operators that would qualify as small under this
size standard.
48. Open Video Services (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 falls within
the 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
[[Page 33954]]
received approval to operate OVS systems in New York City, Boston,
Washington, DC 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. We thus believe that at least some of
the OVS operators may qualify as small entities.
Internet Service Providers
49. 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.'' Under the 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 47 firms had receipts of $10 million or more but less then
$25 million. Consequently, we estimate that the majority of these firms
are small entities that may be affected by our action.
50. 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 $6.5 million or less in average annual receipts.
According to Census Bureau data for 1997, there were 195 firms in this
category that operated for the entire year. Of these, 172 had annual
receipts of under $5 million, and an additional nine firms had receipts
of between $5 million and $9,999,999. Consequently, we estimate that
the majority of these firms are small entities that may be affected by
our action.
Equipment Manufacturers
51. 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.
52. 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 board-
level 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.
53. Semiconductor and Related 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
500 or fewer employees. According to Census Bureau data for 1997, there
were 1,082 establishments in this category that operated for the entire
year. Of these, 987 had employment of under 500, and 52 establishments
had employment of 500 to 999.
54. 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 for 1997, there were
209 establishments in this category that operated for the entire year.
Of these, 197 had employment of under 500, and eight establishments had
employment of 500 to 999.
Description of Projected Reporting, Recordkeeping, and Other Compliance
Requirements
55. The Notice includes a tentative conclusion that carriers should
automatically provide accuracy data to PSAPs. Accordingly, it is
possible that the Commission may establish rules imposing additional
recordkeeping requirements on small entities. The Notice seeks comment
on what specific information carriers should provide to PSAPs; the
Commission will examine the resulting record to determine whether any
requirements should apply to small entities.
Steps Taken to Minimize Significant Economic Impact on Small Entities,
and Significant Alternatives Considered
56. 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: (i) The
establishment of differing compliance or reporting requirements or
timetables that take into account the resources available to small
entities; (ii) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for small entities;
(iii) the use of performance, rather than design standards; and (iv) an
exemption from coverage of the rule, or any part thereof, for small
entities.
57. In the Notice, the Commission specifically considers the impact
of potential revisions to the wireless E911 accuracy rules on small
entities. The Notice asks whether certain classes of carriers and/or
rural networks should be held to a uniform standard of accuracy if the
Commission were to adopt one, and if so, by what date they should be
required to come into compliance with a more stringent, uniform
accuracy requirement. In previous rulemakings, the Commission has
established different compliance deadlines for small wireless carriers.
The questions posed in today's Notice will enable the Commission to
assess whether similar concessions to small entities are warranted with
respect to wireless E911 accuracy requirements.
[[Page 33955]]
Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
58. None.
III. Ordering Clauses
59. Accordingly, it is ordered, pursuant to sections 4(i) and 332
of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 332,
that the Notice of Proposed Rulemaking is adopted.
60. It is further ordered that the Commission's Consumer and
Governmental Affairs 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.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. E7-11404 Filed 6-19-07; 8:45 am]
BILLING CODE 6712-01-P