[Federal Register: August 6, 2007 (Volume 72, Number 150)]
[Rules and Regulations]
[Page 43546-43560]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06au07-11]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 6 and 64
[WC Docket No. 04-36, CG Docket No. 03-123, WT Docket No. 96-198 and CC
Docket No. 92-105; FCC 07-110]
IP-Enabled Services; Implementation of Sections 255 and 251(a)(2)
of the Communications Act of 1934, as Enacted by the Telecommunications
Act of 1996: Access to Telecommunications Service, Telecommunications
Equipment and Customer Premises Equipment by Persons With Disabilities;
Telecommunications Relay Services and Speech-to-Speech Services for
Individuals With Hearing and Speech Disabilities
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document, the Commission extends the disability access
requirements that currently apply to telecommunications service
providers and equipment manufacturers under section 255 of the
Communications Act of 1934, as amended (the Act), to providers of
``interconnected voice over Internet Protocol (VoIP) services,'' as
defined by the Commission, and to manufacturers of specially designed
[[Page 43547]]
equipment used to provide those services. In addition, the Commission
extends the Telecommunications Relay Services (TRS) requirements
contained in its regulations to interconnected VoIP providers.
DATES: Effective October 5, 2007 except for the amendments to 47 CFR
6.11(a) and (b), 6.18(b), 6.19, 64.604(a)(5), 64.604(c)(1) through
(c)(3), 64.604(c)(5)(iii)(C), 64.604(c)(5)(iii)(E),
64.604(c)(5)(iii)(G), 64.604(c)(6)(v)(A)(3), 64.604(c)(6)(v)(G),
64.604(c)(7), and 64.606(b), which contains information collection
requirements that have not been approved by the Office of Management
and Budget (OMB), and on which the Commission must seek comment
pursuant to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-
13. Written comments on the new or modified information collection
requirements must be submitted on or before October 5, 2007. The
Commission will publish a document in the Federal Register announcing
the effective date of those rules and requirements.
ADDRESSES: You may submit PRA comments identified by FCC number 07-110
and CG Docket No. 03-123, by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web Site: http://www.fcc.gov/cgb/ecfs/.
Follow the instructions for submitting comments.
E-mail: Parties who choose to file by e-mail should submit
their PRA comments to
PRA@fcc.gov and to Jasmeet Seehra, at Jasmeet_K._Seehra@omb.eop.gov. Please include FCC number 07-110 and CG Docket
No. CG 03-123 in the subject line of the message.
Mail/Fax: Parties who choose to file by paper should
submit their PRA comments to Cathy Williams, Federal Communications
Commission, Room 1-C823, 445 12th Street, SW., Washington, DC 20554,
and to Jasmeet Seehra, OMB Desk Officer, Room 10236 NEOB, 725 17th
Street, NW., Washington, DC 20503 or via fax (202) 395-5167.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, etc.) by e-mail: FCC504@fcc.gov, phone (202) 418-0539 or
TTY: (202) 418-0432.
FOR FURTHER INFORMATION CONTACT: Lisa Elster Boehley, Consumer &
Governmental Affairs Bureau at (202) 418-7395 (voice), or e-mail
Lisa.Boehley@fcc.gov. For additional information concerning the PRA
information collection requirements contained in this document, send an
e-mail to PRA@fcc.gov or contact Cathy Williams at (202) 418-2918.
SUPPLEMENTARY INFORMATION: This document contains new or modified
information collection requirements subject to the PRA. These will be
submitted to OMB for review under Sec. 3507 of the PRA. OMB, the
general public, and other Federal agencies are invited to comment on
the new or modified information collections contained in this
proceeding.
On September 29, 1999, the Commission issued an order (Section 255
Order) implementing the disability access provisions in sections 255
and 251(a)(2) of the Act (FCC 99-181), published at 64 FR 63235,
November 19, 1999. The Section 255 Order included a Further Notice of
Inquiry (NOI), published at 64 FR 63277, November 19, 1999, which
sought comment on applying accessibility requirements to Internet
Protocol telephony and computer-based equipment that replicates
telecommunications functionality. The NOI sought comment on the extent
to which Internet telephony was impairing access to communications
services among people with disabilities, the efforts manufacturers were
taking to render new technologies accessible, and the degree to which
these technologies should be subjected to the same disability access
requirements as traditional telephony facilities.
On March 10, 2004, the Commission released a Notice of Proposed
Rulemaking (FCC 04-28), published at 69 FR 16193, March 29, 2004,
seeking comment on issues relating to services and applications
utilizing Internet Protocol. On June 15, 2007, the Commission released
this Order (FCC 07-110) extending the disability access requirements
that currently apply to telecommunications service providers and
equipment manufacturers under section 255 of the Act to providers of
``interconnected voice over Internet Protocol (VoIP) services,'' as
defined by the Commission, and to manufacturers of specially designed
equipment used to provide those services, and extending the TRS
requirements contained in 47 CFR 64.601 et seq. of the Commission's
rules to interconnected VoIP providers. Copies of document FCC 07-110
and any subsequently filed documents in this matter will be available
for public inspection and copying during regular business hours at the
FCC Reference Information Center, Portals II, 445 12th Street, SW.,
Room CY-A257, Washington, DC 20554. Document FCC 07-110 and any
subsequently filed documents in this matter may also be purchased from
the Commission's duplicating contractor at Portals II, 445 12th Street,
SW., Room CY-B402, Washington, DC 20554. Customers may contact the
Commission's duplicating contractor at their Web site: http://www.bcpiweb.com
or call 1-800-378-3160. To request materials in
accessible formats for people with disabilities (Braille, large print,
electronic files, audio format), send an e-mail to fcc504@fcc.gov or
call the Consumer & Governmental Affairs Bureau at (202) 418-0530
(voice) or (202) 418-0432 (TTY). Document FCC 07-110 can also be
downloaded in Word and Portable Document Format (PDF) at: http://www.fcc.gov/cgb/dro/trs.html#orders
under TRS Headlines (June 15,
2007).
Paperwork Reduction Act of 1995 Analysis
Document FCC 07-110 contains new or modified information collection
requirements. The Commission, as part of its continuing effort to
reduce paperwork burdens, invites the general public and OMB to comment
on the information collection requirements contained in document FCC
07-110, as required by the PRA. Public and agency comments are due
October 5, 2007. 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. In addition, pursuant to the Small Business Paperwork
Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4), the
Commission seeks specific comment on how it might ``further reduce the
information collection burden for small business concerns with fewer
than 25 employees.''
The Commission assessed the effects of imposing disability access
requirements on interconnected VoIP providers and manufacturers, and of
imposing TRS requirements on interconnected VoIP providers, and finds
that there may be an increased administrative burden on businesses with
fewer than 25 employees.
The Commission has taken steps to minimize the information
collection burden for small business concerns, including those with
fewer than 25
[[Page 43548]]
employees. For example, although the Commission requires covered
entities to maintain records of their accessibility efforts that can be
presented to the Commission to demonstrate compliance, the Commission
does not delineate specific documentation or certification requirements
for ``readily achievable'' analyses. In addition, by adopting general
performance criteria, as opposed to accessibility standards or
performance measurements specifying exactly how access must be
achieved, the Commission's rules provide small entities flexibility in
determining how best to manage their compliance with these rules.
Moreover, by adopting the ``readily achievable'' standard that
currently applies to telecommunications service providers and
manufacturers, covered interconnected VoIP providers and manufacturers
are required to render their services or products accessible only if
doing so is ``easily accomplishable and able to be carried out without
much difficulty or expense.'' Finally, because the information
interconnected VoIP providers currently provide on the
Telecommunications Reporting Worksheet (FCC Form 499-A) for purposes of
the USF reporting requirements also will be used to determine these
entities' TRS contribution, there will be no increased reporting burden
on small businesses. These measures should substantially alleviate any
burdens on businesses with fewer than 25 employees.
Synopsis
Section 255 of the Act requires manufacturers of
``telecommunications equipment or customer premises equipment'' to
ensure that such equipment is accessible to and usable by individuals
with disabilities, if readily achievable, and requires providers of a
``telecommunications service'' to ensure that the service is accessible
to and usable by individuals with disabilities, if readily achievable.
In this Order, the Commission extends those disability access
requirements that currently apply to telecommunications service
providers and equipment manufacturers under section 255 of the Act and
47 CFR part 6, to providers of ``interconnected voice over Internet
Protocol (VoIP) services,'' as defined by the Commission, and to
manufacturers of specially designed equipment used to provide those
services. The Commission adopts this measure under its Title I
ancillary jurisdiction in order to give full effect to the
accessibility policies embodied in section 255 of the Act, and to
further the Commission's statutory mandate to make available a
nationwide communications system that promotes the safety and welfare
of all Americans. In addition, the Commission extends the TRS
requirements contained in the Commission's regulations, 47 CFR 64.601
et seq. (subpart F), to providers of interconnected VoIP services,
pursuant to section 225(b)(1) of the Act and the Commission's Title I
ancillary jurisdiction. Among the TRS requirements extended to
interconnected VoIP providers, the Commission requires such providers
to contribute to the Interstate TRS Fund (Fund) under the Commission's
existing contribution rules, and to offer 711 abbreviated dialing for
access to relay services. Together, these measures will ensure that, as
more consumers migrate from traditional phone service to interconnected
VoIP services, the disability access provisions mandated by Congress
under sections 255 and 225 of the Act will apply to, and benefit users
of, interconnected VoIP services and equipment.
Final Regulatory Flexibility Certification (FRFA)
Pursuant to the Regulatory Flexibility Act of 1980, as amended, 5
U.S.C. 601 et seq. (RFA), the Commission has prepared a Final
Regulatory Flexibility Analysis (FRFA) of the possible significant
economic impact on small entities of the policies and rules addressed
in this document. The Commission sought written public comment on the
proposals in the notice, including comment on the Initial Regulatory
Flexibility Analysis (IRFA). See IP-Enabled Services NPRM, 19 FCC Rcd
at 4917, paragraph 91 and Appendix A. The Commission received three
comments on the IRFA, which are discussed below. This FRFA conforms to
the RFA. See 5 U.S.C. 604.
Need for, and Objectives of, the Rules
FCC 07-110 strengthens the Commission's disability access rules.
Section 255 of the Act requires telecommunications service providers
and equipment manufacturers to render their services or equipment
accessible to persons with disabilities, if readily achievable. The
Order extends the disability access requirements, that currently apply
to telecommunications service providers and equipment manufacturers
under section 255 of the Act, to providers of interconnected VoIP
services and to manufacturers of specially designed equipment used to
provide those services. In addition, the Order extends the TRS
requirements contained in the Commission's regulations, 47 CFR 64.601
et seq. (subpart F), to providers of interconnected VoIP services.
Among the TRS requirements extended to interconnected VoIP providers,
the Commission requires such providers to contribute to the Interstate
TRS Fund under the Commission's existing contribution rules, see 47 CFR
64.604(c)(5)(iii)(A), (B), and to offer 711 abbreviated dialing for
access to relay services, see 47 CFR 64.603. Together, these measures
will ensure that, as more consumers migrate from traditional phone
service to interconnected VoIP services, the disability access
provisions mandated by Congress under sections 255 and 225 of the Act
will apply to, and benefit users of, interconnected VoIP services and
equipment.
Summary of Significant Issues Raised by Public Comments in Response to
the IRFA
Comments Received in Response to the IP-Enabled Services NPRM. In
this section, we respond to comments filed in response to the IRFA. To
the extent comments raised general small business concerns during this
proceeding, those comments have been addressed in the Order. The
Commission disagrees with SBA and Menard that the Commission should
postpone acting in this proceeding--thereby postponing extension of the
application of the disability access and TRS contribution rules to
interconnected VoIP providers--and instead should reevaluate the
economic impact and the compliance burdens on small entities and issue
a further notice of proposed rulemaking in conjunction with a
supplemental IRFA identifying and analyzing the economic impacts on
small entities, and less burdensome alternatives. See Comments of SBA
at 2, 4, 6 (May 28, 2004); Comments of Menard at 2-5 (May 28, 2004);
Reply of Menard at 4 (July 15, 2004).
The additional steps suggested by SBA and Menard are unnecessary,
because small entities already had sufficient notice of the issues
addressed in the Order, through comment sought by the IP-Enabled
Services NPRM and the Section 255 NOI. Indeed, the Commission notes
that a number of small entities submitted comments in this proceeding.
The Commission has considered the economic impact on small entities as
well as ways to minimize the burdens imposed on those entities, and, to
the extent feasible, has implemented those less burdensome
alternatives. See Order, FCC 07-110, section E of Appendix A.
[[Page 43549]]
Description and Estimate of the Number of Small Entities to Which Rules
Will 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 rules adopted herein. The RFA generally defines the
term ``small entity'' as having the same meaning as the terms ``small
business,'' ``small organization,'' and ``small governmental
jurisdiction.'' Pursuant to 5 U.S.C. 601(3), 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 of the agency and
publishes such definitions(s) in the Federal Register.'' 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).
Small Businesses. Nationwide, there are a total of approximately
22.4 million small businesses, according to SBA data.
Small Organizations. Nationwide, there are approximately 1.6
million small organizations.
Small Governmental Jurisdictions. The term ``small governmental
jurisdiction'' is defined generally as ``governments of cities, towns,
townships, villages, school districts, or special districts, with a
population of less than fifty thousand.'' Census Bureau data for 2002
indicate that there were 87,525 local governmental jurisdictions in the
United States. The Commission estimates that, of this total, 84,377
entities were ``small governmental jurisdictions.'' Thus, the
Commission estimates that most governmental jurisdictions are small.
Telecommunications Service Entities
Wireless Carriers and Service Providers. The Commission has
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. The
Small Business Act contains a definition of ``small-business concern,''
which the RFA incorporates into its own definition of ``small
business.'' SBA regulations interpret ``small business concern'' to
include the concept of dominance on a national basis. The Commission
therefore has included small incumbent local exchange carriers in this
RFA analysis, although the Commission emphasizes that this RFA action
has no effect on Commission analyses and determinations in other, non-
RFA contexts.
Wired Telecommunications Carriers. 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.
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 which a business is small if it has 1,500 or fewer employees.
According to Commission data, 1,307 carriers have reported that they
are engaged in the provision of incumbent local exchange services. Of
these 1,307 carriers, an estimated 1,019 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 the Commission's action.
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 which a business is small if it has
1,500 or fewer employees. According to Commission data, 859 carriers
have reported that they are engaged in the provision of either
competitive access provider services or competitive local exchange
carrier services. Of these 859 carriers, an estimated 741 have 1,500 or
fewer employees and 118 have more than 1,500 employees. In addition, 16
carriers have reported that they are ``Shared-Tenant Service
Providers,'' and all 16 are estimated to have 1,500 or fewer employees.
In addition, 44 carriers have reported that they are ``Other Local
Service Providers.'' Of the 44, an estimated 43 have 1,500 or fewer
employees and one has more than 1,500 employees. Consequently, the
Commission estimates that most providers of competitive local exchange
service, competitive access providers, ``Shared-Tenant Service
Providers,'' and ``Other Local Service Providers'' are small entities
that may be affected by the Commission's action.
Local Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers, under which
a business is small if it has 1,500 or fewer employees. According to
Commission data, 184 carriers have reported that they are engaged in
the provision of local resale services. Of these, an estimated 181 have
1,500 or fewer employees and three have more than 1,500 employees.
Consequently, the Commission estimates that the majority of local
resellers are small entities that may be affected by the Commission's
action.
Toll Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers, under which
a business is small if it has 1,500 or fewer employees. According to
Commission data, 881 carriers have reported that they are engaged in
the provision of toll resale services. Of these, an estimated 853 have
1,500 or fewer employees and 28 have more than 1,500 employees.
Consequently, the Commission estimates that the majority of toll
resellers are small entities that may be affected by the Commission's
action.
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
which a business is small if it has 1,500 or fewer employees. According
to Commission data, 657 carriers have reported that they are engaged in
the provision of payphone
[[Page 43550]]
services. Of these, an estimated 653 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 the Commission's action.
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
which a business is small if it has 1,500 or fewer employees. According
to Commission data, 330 carriers have reported that they are engaged in
the provision of interexchange service. Of these, an estimated 309 have
1,500 or fewer employees and 21 have more than 1,500 employees.
Consequently, the Commission estimates that the majority of IXCs are
small entities that may be affected by the Commission's action.
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
which a business is small if it has 1,500 or fewer employees. According
to Commission data, 23 carriers have reported that they are engaged in
the provision of operator services. Of these, an estimated 22 have
1,500 or fewer employees and one has more than 1,500 employees.
Consequently, the Commission estimates that the majority of OSPs are
small entities that may be affected by the Commission's action.
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 which a
business is small if it has 1,500 or fewer employees. According to
Commission data, 104 carriers have reported that they are engaged in
the provision of prepaid calling cards. Of these, 102 are estimated to
have 1,500 or fewer employees and two have more than 1,500 employees.
Consequently, the Commission estimates that all or the majority of
prepaid calling card providers are small entities that may be affected
by the Commission's action.
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 which 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 this source, as
of the end of June 2006, the number of 800 numbers assigned was
7,647,941, the number of 888 numbers assigned was 5,318,667, the number
of 877 numbers assigned was 4,431,162, and the number of 866 numbers
assigned was 6,008,976. 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 approximately 7,647,941 small entity 800
subscribers, approximately 5,318,667 small entity 888 subscribers,
approximately 4,431,162 small entity 877 subscribers, and approximately
6,008,976 small entity 866 subscribers.
International Service Providers
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 $12.5 million
or less in average annual receipts. 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 the Commission's action.
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, 259 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 the Commission's
action.
Wireless Telecommunications Service Providers
Below, for those services subject to auctions, the Commission notes
that, as a general matter, the number of winning bidders that qualify
as small businesses at the close of an auction does not necessarily
represent the number of small businesses currently in service. The
Commission does not generally track subsequent business size unless, in
the context of assignments or transfers, unjust enrichment issues are
implicated.
Wireless Service Providers. The SBA has developed a small business
size standard for wireless firms within the two broad economic census
categories of ``Paging'' and ``Cellular and Other Wireless
Telecommunications.'' Under both SBA categories, a wireless business is
small if it has 1,500 or fewer employees. For the census category of
Paging, Census Bureau data for 2002 show that there were 807 firms in
this category that operated for the entire year. Of this total, 804
firms had employment of 999 or fewer employees, and three firms had
employment of 1,000 employees or more. Thus, under this category and
associated small business size standard, the majority of firms can be
considered small. For the census category of Cellular and Other
Wireless Telecommunications, Census Bureau data for 2002 show that
there were 1,397 firms in this category that operated for the entire
year. Of this total, 1,378 firms had employment of 999 or fewer
employees, and 19 firms had employment of 1,000 employees or more.
Thus, under this second category and size standard, the majority of
firms can, again, be considered small.
[[Page 43551]]
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 which 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, 432 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. The Commission has estimated
that 221 of these are small, under the SBA small business size
standard.
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 which a
wireless business is small if it has 1,500 or fewer employees. For the
census category of Paging, Census Bureau data for 2002 show that there
were 807 firms in this category that operated for the entire year. Of
this total, 804 firms had employment of 999 or fewer employees, and
three firms had employment of 1,000 employees or more. Thus, under this
category and associated small business size standard, the majority of
firms can be considered small. In the Paging Third Report and Order,
the Commission developed a small business size standard for ``small
businesses'' and ``very small businesses.'' See Amendment of Part 90 of
the Commission's Rules to Provide for the Use of the 220-222 MHz Band
by the Private Land Mobile Radio Service, PR Docket No. 89-552, Third
Report and Order and Fifth Notice of Proposed Rulemaking, 12 FCC Rcd
10943, 11068-70, paragraphs 291-295, 62 FR 16004 (April 3, 1997) (220
MHz Third Report and Order).
A ``small business'' and a ``very small business'' are entities
that, together with their affiliates and controlling principals, have
average gross revenues not exceeding $15 million for $3 million,
respectively, 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, the Commission estimates that 370 are
small, under the SBA-approved small business size standard.
Wireless Communications Services. This service can be used for
fixed, mobile, radiolocation, and digital audio broadcasting satellite
uses. The Commission established small business size standards for the
wireless communications services (WCS) auction. A ``small business''
and a ``very small business'' are entities with average gross revenues
of $40 million or $15 million, respectively, for each of the three
preceding years. The SBA has approved these small business size
standards. 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.
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 which a business is small if it
has 1,500 or fewer employees. According to Commission data, 432
carriers reported that they were engaged in the provision of cellular
service, Personal Communications Service (PCS), or Specialized Mobile
Radio (SMR) Telephony services, which are placed together in the data.
The Commission has estimated that 221 of these are small, under the SBA
small business size standard.
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. See Amendment of Parts 20 and 24 of
the Commission's Rules--Broadband PCS Competitive Bidding and the
Commercial Mobile Radio Service Spectrum Cap, WT Docket No. 96-59,
Report and Order, 11 FCC Rcd 7824, 61 FR 33859 (July 1, 1996) (PCS
Order). 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.'' See PCS Order. These
standards defining ``small entity'' in the context of broadband PCS
auctions have been approved by the SBA. See, e.g., Implementation of
Section 309(j) of the Communications Act--Competitive Bidding, PP
Docket No. 93-253, Fifth Report and Order, 9 FCC Rcd 5332, 59 FR 37566
(July 22, 1994). 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.
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. A ``small business'' and
a ``very small business'' are entities that, together with affiliates
and controlling interests, have average gross revenues of not more than
$40 million or $15 million, respectively, for the three preceding
years. 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
[[Page 43552]]
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.
220 MHz Radio Service--Phase I Licensees. The 220 MHz service has
both Phase I and Phase II licenses. Phase I licensing was conducted by
lotteries in 1992 and 1993. There are approximately 1,515 such non-
nationwide licensees and four nationwide licensees currently authorized
to operate in the 220 MHz band. The Commission has not developed a
small business size standard for small entities specifically applicable
to such incumbent 220 MHz Phase I licensees. To estimate the number of
such licensees that are small businesses, we apply the small business
size standard under the SBA rules applicable to ``Cellular and Other
Wireless Telecommunications'' companies, under which a small business
is a wireless company employing no more than 1,500 persons. For the
census category of Cellular and Other Wireless Telecommunications,
Census Bureau data for 2002 show that there were 1,397 firms in this
category that operated for the entire year. Of this total, 1,378 firms
had employment of 999 or fewer employees, and 19 firms had employment
of 1,000 employees or more. Thus, under this second category and size
standard, the majority of firms can, again, be considered small.
Assuming this general ratio continues in the context of Phase I 220 MHz
licensees, the Commission estimates that nearly all such licensees are
small businesses under the SBA's small business size standard.
220 MHz Radio Service--Phase II Licensees. The 220 MHz service has
both Phase I and Phase II licenses. The Phase II 220 MHz service is a
new service, and is subject to spectrum auctions. In the 220 MHz Third
Report and Order, the Commission adopted a small business size standard
for ``small'' and ``very small'' businesses for entities that, together
with affiliates and controlling interests, have average gross revenues
not exceeding $15 million or $3 million, respectively, for the three
preceding years. See 220 MHz Third Report and Order, 12 FCC Rcd at
11068-70, paragraphs 291-295. The SBA has approved these small business
size standards. Auctions of Phase II licenses commenced on September
15, 1998, and closed on October 22, 1998. In the first auction, 908
licenses were auctioned in three different-sized geographic areas:
Three nationwide licenses, 30 Regional Economic Area Group (EAG)
Licenses, and 875 Economic Area (EA) Licenses. Of the 908 licenses
auctioned, 693 were sold. Thirty-nine small businesses won licenses in
the first 220 MHz auction. The second auction included 225 licenses:
216 EA licenses and 9 EAG licenses. Fourteen companies claiming small
business status won 158 licenses.
800 MHz and 900 MHz Specialized Mobile Radio Licenses. The
Commission awards ``small entity'' and ``very small entity'' bidding
credits in auctions for Specialized Mobile Radio (SMR) geographic area
licenses in the 800 MHz and 900 MHz bands to firms that had revenues of
no more than $15 million in each of the three previous calendar years,
or that had revenues of no more than $3 million in each of the previous
calendar years, respectively. The Commission does not know how many
firms provide 800 MHz or 900 MHz geographic area SMR service pursuant
to extended implementation authorizations, nor how many of these
providers have annual revenues of no more than $15 million. One firm
has over $15 million in revenues. The Commission assumes that the
remaining existing extended implementation authorizations are held by
small entities, as that term is defined by the SBA. The Commission has
held auctions for geographic area licenses in the 800 MHz and 900 MHz
SMR bands. There were 60 winning bidders that qualified as small or
very small entities in the 900 MHz SMR auctions. Of the 1,020 licenses
won in the 900 MHz auction, bidders qualifying as small or very small
entities won 263 licenses. In the 800 MHz auction, 38 of the 524
licenses won were won by small and very small entities.
700 MHz Guard Band Licensees. In the 700 MHz Guard Band Order, the
Commission adopted a small business size standard for ``small
businesses'' and ``very small businesses'' for entities that, together
with affiliates and controlling interests, have average gross revenues
not exceeding $15 million or $3 million, respectively, for the three
preceding years. See Service Rules for the 746-764 MHz Bands, and
Revisions to Part 27 of the Commission's Rules, WT Docket No. 99-168,
Second Report and Order, 65 FR 17599 (Apr. 4, 2000). An auction of 52
Major Economic Area (MEA) licenses commenced on September 6, 2000, and
closed on September 21, 2000. Of the 104 licenses auctioned, 96
licenses were sold to nine bidders. Five of these bidders were small
businesses that won a total of 26 licenses. A second auction of 700 MHz
Guard Band licenses commenced on February 13, 2001 and closed on
February 21, 2001. All eight of the licenses auctioned were sold to
three bidders. One of these bidders was a small business that won a
total of two licenses.
Rural Radiotelephone Service. The Commission has not adopted a size
standard for small businesses specific to the Rural Radiotelephone
Service. The service is defined in section 22.99 of the Commission's
Rules, 47 CFR 22.99. A significant subset of the Rural Radiotelephone
Service is the Basic Exchange Telephone Radio System (BETRS). BETRS is
defined in sections 22.757 and 22.759 of the Commission's Rules, 47 CFR
22.757 and 22.759. 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.
Air-Ground Radiotelephone Service. The Commission has not adopted a
small business size standard specific to the Air-Ground Radiotelephone
Service. The service is defined in section 22.99 of the Commission's
Rules, 47 CFR 22.99. The Commission 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.
Aviation and Marine Radio Services. Small businesses in the
aviation and marine radio services use a very high frequency (VHF)
marine or aircraft radio and, as appropriate, an emergency position-
indicating radio beacon (and/or radar) or an emergency locator
transmitter. The Commission has not developed a small business size
standard specifically applicable to these small businesses. For
purposes of this analysis, the Commission uses the SBA small business
size standard for the category ``Cellular and Other
Telecommunications,'' which is 1,500 or fewer employees. Most
applicants for recreational licenses are individuals. Approximately
581,000 ship station
[[Page 43553]]
licensees and 131,000 aircraft station licensees operate domestically
and are not subject to the radio carriage requirements of any statute
or treaty. For purposes of the Commission's evaluations in this
analysis, we estimate that there are up to approximately 712,000
licensees that are small businesses (or individuals) under the SBA
standard. In addition, between December 3, 1998 and December 14, 1998,
the Commission held an auction of 42 VHF Public Coast licenses in the
157.1875-157.4500 MHz (ship transmit) and 161.775-162.0125 MHz (coast
transmit) bands. For purposes of the auction, the Commission defined
``small'' businesses and ``very small'' businesses as entities that,
together with affiliates and controlling interests, have average gross
revenues not exceeding $15 million or $3 million, respectively, for the
three preceding years. There are approximately 10,672 licensees in the
Marine Coast Service, and the Commission estimates that almost all of
them qualify as ``small'' businesses under the above special small
business size standards.
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.
The Commission is 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.
39 GHz Service. The Commission created special ``small business''
and ``very small business'' size standards for 39 GHz licenses--
entities that have average gross revenues of up to $40 million or $15
million, respectively, in the three previous calendar years. The SBA
has approved these small business size standards. The auction of the
2,173 39 GHz licenses began on April 12, 2000 and closed on May 8,
2000. The 18 bidders who claimed small business status won 849
licenses.
Wireless Cable Systems. Wireless cable systems use 2 GHz band
frequencies of the Broadband Radio Service (``BRS'') (formerly
Multipoint Distribution Service (``MDS'')) and the Educational
Broadband Service (``EBS'') (formerly Instructional Television Fixed
Service (``ITFS'')), to transmit video programming and provide
broadband services to residential subscribers. These services were
originally designed for the delivery of multichannel video programming,
similar to that of traditional cable systems, but over the past several
years licensees have focused their operations instead on providing two-
way high-speed Internet access services. Local Multipoint Distribution
Service (``LMDS'') is a fixed broadband point-to-multipoint microwave
service that provides for two-way video telecommunications. As
described below, the SBA small business size standard for the broad
census category of Cable and Other Program Distribution, which consists
of such entities generating $13.5 million or less in annual receipts,
appears applicable to BRS, EBS and LMDS. Other standards also apply, as
described.
The Commission has defined small MDS (now BRS) and LMDS entities in
the context of Commission license auctions. In the 1996 MDS auction,
the Commission defined a ``small business'' as an entity that had
annual average gross revenues of less than $40 million in the previous
three calendar years. This definition has been approved by the SBA in
the context of MDS auctions. In the MDS auction, 67 bidders won 493
licenses. Of the 67 auction winners, 61 claimed status as a small
business. At this time, the Commission estimates that of the 61 small
business MDS auction winners, 48 remain small business licensees. In
addition to the 48 small businesses that hold BTA authorizations, there
are approximately 392 incumbent MDS licensees that have gross revenues
that are not more than $40 million and are thus considered small
entities. Hundreds of stations were licensed to incumbent MDS licensees
prior to implementation of Section 309(j) of the Act, 47 U.S.C. 309(j).
For these pre-auction licenses, the applicable standard is SBA's small
business size standards for ``other telecommunications'' (annual
receipts of $13.5 million or less). MDS licensees and wireless cable
operators that did not receive their licenses as a result of the MDS
auction fall under the SBA small business size standard for Cable and
Other Program Distribution. Information available to the Commission
indicates that there are approximately 850 of these licensees and
operators that do not generate revenue in excess of $13.5 million
annually. Therefore, the Commission estimates that there are
approximately 850 small entity BRS providers, as defined by the SBA and
the Commission's auction rules. Educational institutions are included
in this analysis as small entities; however, the Commission has not
created a specific small business size standard for ITFS (now EBS). The
Commission estimates that there are currently 2,032 ITFS (or EBS)
licensees, and all but 100 of the licenses are held by educational
institutions. Thus, the Commission estimates that at least 1,932 ITFS
licensees are small entities.
Local Multipoint Distribution Service. LMDS is a fixed broadband,
point-to-multipoint, microwave service that provides for two-way video
telecommunications. The Commission established ``small business'' and
``very small business'' size standards for LMDS licenses as entities
that have average gross revenues not exceeding $40 million or $15
million, respectively, for the three preceeding years. The SBA has
approved these small business size standards in the context of LMDS
auctions. A total of 93 small and very small business bidders won
approximately 277 A Block licenses and 387 B Block licenses in LMDS
auctions. On March 27, 1999, the Commission re-auctioned 161 licenses;
there were 40 winning bidders. Based on this information, the
Commission concludes that the maximum number of small LMDS licensees
consists of the 93 winning bidders in the first auction and the 40
winning bidders in the re-auction, for a total of 133 small entity LMDS
providers.
218-219 MHz Service. The first auction of 218-219 MHz spectrum
resulted in 170 entities winning licenses for 594 Metropolitan
Statistical Area (MSA) licenses. Of the 594 licenses, 557 were won by
entities qualifying as a small business. For that auction, the small
business size standard was an entity that, together with its
affiliates, has no more than a $6 million net worth and, after federal
income taxes (excluding any carry over losses), has no more than $2
million in annual profits each year for the previous two years. In the
218-219 MHz Report and Order and Memorandum Opinion and Order, 64 FR
59656, the Commission established standards for a ``small business''
and a ``very small business'' as entities that, together with
affiliates and controlling interests, have average annual gross
revenues not exceeding $15 million or $3 million, respectively, for the
three preceding years. These special small business size standards will
be used, as appropriate, in future auctions of 218-219 MHz spectrum.
24 GHz--Incumbent Licensees. This analysis may affect incumbent
licensees who were relocated to the 24 GHz band from the 18 GHz band,
and applicants who wish to provide services in the 24 GHz band. The
applicable SBA small business size standard is that of
[[Page 43554]]
``Cellular and Other Wireless Telecommunications'' companies. This
category provides that such a company is small if it employs no more
than 1,500 persons. For the census category of Cellular and Other
Wireless Telecommunications, Census Bureau data for 2002 show that
there were 1,397 firms in this category that operated for the entire
year. Of this total, 1,378 firms had employment of 999 or fewer
employees, and 19 firms had employment of 1,000 employees or more.
Thus, under this second category and size standard, the majority of
firms can, again, be considered small. These broader census data
notwithstanding, the Commission believes that there are only two
licensees in the 24 GHz band that were relocated from the 18 GHz band,
Teligent and TRW, Inc. It is the Commission's 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.
24 GHz--Future Licensees. With respect to new applicants in the 24
GHz band, the SBA approved small business size standards for a ``small
business'' and ``very small business,'' which are entities that,
together with affiliates and controlling interests, have average annual
gross revenues not exceeding $15 million or $3 million, respectively,
for the three preceding years. These size standards will apply to the
future auction, if held.
Cable and OVS Operators
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.
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.
Cable System Operators. The Act also contains a size standard for
small cable system operators, which is ``a cable operator that,
directly or through an affiliate, serves in the aggregate fewer than 1
percent of all subscribers in the United States and is not affiliated
with any entity or entities whose gross annual revenues in the
aggregate exceed $250,000,000.'' The Commission has determined that an
operator serving fewer than 677,000 subscribers shall be deemed a small
operator, if its annual revenues, when combined with the total annual
revenues of all its affiliates, do not exceed $250 million in the
aggregate. Industry data indicate that, of 1,076 cable operators
nationwide, all but ten are small under this size standard. The
Commission notes that it neither requests nor collects information on
whether cable system operators are affiliated with entities whose gross
annual revenues exceed $250 million, and therefore it cannot provide a
more accurate estimate of the number of cable system operators that
would qualify as small under this size standard.
Open Video Services. Open Video Service (OVS) systems provide
subscription services. The SBA has created a small business size
standard for Cable and Other Program Distribution. This standard
provides that a small entity is one with $13.5 million or less in
annual receipts. The Commission has certified approximately 25 OVS
operators to serve 75 areas, some of which are currently providing
service. Affiliates of Residential Communications Network, Inc. (RCN)
received approval to operate OVS systems in New York City, Boston,
Washington, DC, and other areas. RCN has sufficient revenues to assure
that they do not qualify as a small business entity. Little financial
information is available for the other entities that are authorized to
provide OVS and are not yet operational. Since some entities authorized
to provide OVS service have not yet begun to generate revenues, the
Commission concludes that up to all 24 of the OVS operators other than
RCN might qualify as small businesses that may be affected by the rules
and policies adopted herein.
Internet Service Providers
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 an
additional 47 firms had receipts of between $10 million and
$24,999,999. Consequently, the Commission estimates that the majority
of these firms are small entities that may be affected by the
Commission's action.
Other Internet-Related Entities
Web Search Portals. The Commission's action pertains to VoIP
services, which could be provided by entities that provide other
services such as e-mail, online gaming, web browsing, video
conferencing, instant messaging, and other, similar IP-enabled
services. The Commission has not adopted a size standard for entities
that create or provide these types of services or applications.
However, the Census Bureau identified firms that ``operate web sites
that use a search engine to generate and maintain extensive databases
of Internet addresses and content in an easily searchable format. Web
search portals often provide additional Internet services, such as e-
mail, connections to other web sites, auctions, news, and other limited
content, and serve as a home base for Internet users.'' The SBA
developed a small business size standard for this category of $6.5
million or less in average annual receipts. According to Census Bureau
data for 2002, 342 firms in this category operated for the entire year.
Of these, 303 had annual receipts of under $5 million, and 15 firms had
receipts of between $5 million and $9,999,999. The Commission estimates
that the majority of these firms are small
[[Page 43555]]
entities that may be affected by the Commission's action.
Data Processing, Hosting, and Related Services. Entities in this
category ``primarily * * * provid[e] infrastructure for hosting or data
processing services.'' The SBA developed a small business size standard
for this category of $23 million or less in average annual receipts.
According to Census Bureau data for 2002, 6,877 firms in this category
operated for the entire year, 6,418 of which had annual receipts of
under $10 million, and an additional 251 of which had receipts of
between $10 million and $24,999,999. Consequently, the Commission
estimates that the majority of these firms are small entities that may
be affected by the Commission's action.
All Other Information Services. ``This industry comprises
establishments primarily engaged in providing other information
services (except new syndicates and libraries and archives).'' The
Commission's action pertains to VoIP services, which could be provided
by entities that provide other services such as e-mail, online gaming,
web browsing, video conferencing, instant messaging, and other, similar
IP-enabled services. The SBA developed a small business size standard
for this category of $6.5 million or less in average annual receipts.
According to Census Bureau data for 2002, there were 155 firms in this
category that operated for the entire year. Of these, 138 had annual
receipts of under $5 million, and an additional four firms had receipts
of between $5 million and $9,999,999. The Commission estimates that the
majority of these firms are small entities that may be affected by the
Commission's action.
Internet Publishing and Broadcasting. ``This industry comprises
establishments engaged in publishing and/or broadcasting content on the
Internet exclusively. These establishments do not provide traditional
(non-Internet) versions of the content that they publish or
broadcast.'' The SBA developed a small business size standard for this
census category of 500 or fewer employees. According to Census Bureau
data for 2002, 1,362 firms in this category operated for the entire
year. Of these, 1,351 employed 499 or fewer employees, and six firms
employed between 500 and 999. Consequently, the Commission estimates
that the majority of these firms are small entities that may be
affected by the Commission's action.
Software Publishers. These companies may design, develop or publish
software and may provide other support services to software purchasers,
such as providing documentation or assisting in installation. The
companies may also design software to meet the needs of specific users.
The SBA developed a small business size standard of $23 million or less
in average annual receipts for all of the following pertinent
categories: Software Publishers, Custom Computer Programming Services,
and Other Computer Related Services. For Software Publishers, Census
Bureau data for 2002 indicate that there were 6,155 firms in the
category that operated for the entire year. Of these, 7,633 had annual
receipts of under $10 million, and an additional 403 firms had receipts
of between $10 million and $24,999,999. For providers of Custom
Computer Programming Services, the Census Bureau data indicate that
there were 32,269 firms that operated for the entire year. Of these,
31,416 had annual receipts of under $10 million, and an additional 565
firms had receipts of between $10 million and $24,999,999. For
providers of Other Computer Related Services, the Census Bureau data
indicate that there were 6,357 firms that operated for the entire year.
Of these, 6,187 had annual receipts of under $10 million, and an
additional 101 firms had receipts of between $10 million and
$24,999,999. Consequently, the Commission estimates that the majority
of the firms in each of these three categories are small entities that
may be affected by the Commission's action.
Equipment Manufacturers
The disability access requirements we adopt today apply to
manufacturers of specialized VoIP equipment and CPE. The following
entities include those that may be affected by the actions taken in
this Order.
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, 518 establishments in this category operated for
the entire year. Of this total, 511 employed under 1,000, and an
additional 7 employed 1,000 to 2,499. Thus, under this size standard,
the majority of firms can be considered small.
Radio and Television Broadcasting and Wireless Communications
Equipment Manufacturing. The Census Bureau defines this category as
follows: ``This industry comprises establishments primarily engaged in
manufacturing radio and television broadcast and wireless
communications equipment. Examples of products made by these
establishments are: Transmitting and receiving antennas, cable
television equipment, GPS equipment, pagers, cellular phones, mobile
communications equipment, and radio and television studio and
broadcasting equipment.'' The SBA established firms having 750 or fewer
employees as the small business size standard for Radio and Television
Broadcasting and Wireless Communications Equipment Manufacturing.
According to Census Bureau data for 2002, 1,041 establishments in this
category operated for the entire year. Of this total, 1,010 employed
under 500, and an additional 13 employed 500 to 999. Thus, under this
size standard, the majority of firms can be considered small.
Other Communications Equipment Manufacturing. The Census Bureau
defines this category as follows: ``This industry comprises
establishments primarily engaged in manufacturing communications
equipment (except telephone apparatus, and radio and television
broadcast, and wireless communications equipment).'' The SBA
established firms having 750 or fewer employees as the small business
size standard for Other Communications Equipment Manufacturing.
According to Census Bureau data for 2002, there were a total of 503
establishments in this category that operated for the entire year. Of
this total, 493 employed under 500, and 7 employed 500 to 999. Thus,
under this size standard, the majority of firms can be considered
small.
SBA small business size standards are given in terms of ``firms.''
Census Bureau data concerning computer manufacturers, on the other
hand, are given in terms of ``establishments.'' The Commission notes
that the number of ``establishments'' is a less helpful indicator of
small business prevalence in this context than would be the number of
``firms'' or ``companies,'' because the latter take into account the
concept of common ownership or control. Any single physical location
for an entity is an establishment, although that location may be owned
by a
[[Page 43556]]
different establishment. Thus, the census numbers provided below may
reflect inflated numbers of businesses in the given category, including
the numbers of small businesses.
Electronic Computer Manufacturing. This category ``comprises
establishments primarily engaged in manufacturing and/or assembling
electronic computers, such as mainframes, personal computers,
workstations, laptops, and computer servers.'' The SBA has established
firms having 1000 or fewer employees as the small business size
standard for this category of manufacturing. According to Census Bureau
data, 485 establishments in this category operated with payroll during
2002. Of these, 476 employed under 1,000, and an additional four
employed 1,000 to 2,499. Consequently, the Commision estimates that the
majority of these establishments are small entities.
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 established firms having 1000 or fewer
employees as the small business size standard for this category of
manufacturing. According to Census Bureau data, 170 establishments in
this category operated with payroll during 2002. Of these, 164 employed
under 500, and five employed 500 to 999. The Commission estimates that
the majority of these establishments are small entities.
Computer Terminal Manufacturing. ``Computer terminals are input/
output devices that connect with a central computer for processing.''
The SBA established firms having 1000 or fewer employees as the small
business size standard for this category of manufacturing. According to
Census Bureau data, 71 establishments in this category operated with
payroll during 2002, and all employed fewer than 1,000. The Commission
estimates that all of these establishments are small entities.
Other Computer Peripheral Equipment Manufacturing. Examples of
peripheral equipment in this category include keyboards, mouse devices,
monitors, and scanners. The SBA established firms having 1000 or fewer
employees as the small business size standard for this category of
manufacturing. According to Census Bureau data, 860 establishments in
this category operated with payroll during 2002. Of these, 851 employed
under 1,000, and five employed 1,000 to 2,499. The Commission estimates
that the majority of these establishments are small entities.
Audio and Video Equipment Manufacturing. These establishments
manufacture ``electronic audio and video equipment for home
entertainment, motor vehicle, public address and musical instrument
amplifications.'' The SBA established firms having 750 or fewer
employees as the small business size standard for this category of
manufacturing. According to Census Bureau data, 571 operated with
payroll during 2002. Of these, 560 employed under 500, and ten employed
of 500 to 999. The Commission estimates that the majority of these
establishments are small entities.
Electron Tube Manufacturing. These establishments are ``primarily
engaged in manufacturing electron tubes and parts (except glass
blanks).'' The SBA developed a small business size standard of 750 or
fewer employees for this category of manufacturing. According to Census
Bureau data, 102 establishments in this category operated with payroll
during 2002. Of these, 97 employed under 500, and one employed 500 to
999. The Commission estimates that the majority of these establishments
are small entities.
Bare Printed Circuit Board Manufacturing. These establishments are
``primarily engaged in manufacturing bare (i.e., rigid or flexible)
printed circuit boards without mounted electronic components.'' The SBA
developed a small business size standard of 500 or fewer employees for
this category of manufacturing. According to Census Bureau data, 936
establishments in this category operated with payroll during 2002. Of
these, 922 employed under 500, and 12 employed 500 to 999. The
Commission estimates that the majority of these establishments are
small entities.
Semiconductor and Related Device Manufacturing. Examples of
manufactured devices in this category include ``integrated circuits,
memory chips, microprocessors, diodes, transistors, solar cells and
other optoelectronic devices.'' The SBA developed a small business size
standard of 500 or fewer employees for this category of manufacturing.
According to Census Bureau data, 1,032 establishments in this category
operated with payroll during 2002. Of these, 950 employed under 500,
and 42 employed 500 to 999. The Commission estimates that the majority
of these establishments are small entities.
Electronic Capacitor Manufacturing. These establishments
manufacture ``electronic fixed and variable capacitors and
condensers.'' The SBA developed a small business size standard of 500
or fewer employees for this category of manufacturing. According to
Census Bureau data, 104 establishments in this category operated with
payroll during 2002. Of these, 101 employed under 500, and two employed
500 to 999. The Commission estimates that the majority of these
establishments are small entities.
Electronic Resistor Manufacturing. These establishments manufacture
``electronic resistors, such as fixed and variable resistors, resistor
networks, thermistors, and varistors.'' The SBA developed a small
business size standard of 500 or fewer employees for this category of
manufacturing. According to Census Bureau data, 79 establishments in
this category operated with payroll during 2002. All of these
establishments employed under 500. The Commission estimates that all of
these establishments are small entities.
Electronic Coil, Transformer, and Other Inductor Manufacturing.
These establishments manufacture ``electronic inductors, such as coils
and transformers.'' The SBA developed a small business size standard of
500 or fewer employees for this category of manufacturing. According to
Census Bureau data, 365 establishments in this category operated with
payroll during 2002, and all employed under 500. The Commission
estimates that all of these establishments are small entities.
Electronic Connector Manufacturing. These establishments
manufacture ``electronic connectors, such as coaxial, cylindrical, rack
and panel, pin and sleeve, printed circuit and fiber optic.'' The SBA
developed a small business size standard of 500 or fewer employees for
this category of manufacturing. According to Census Bureau data, 321
establishments in this category operated with payroll during 2002. Of
these, 315 employed under 500, and three employed 500 to 999. The
Commission estimates that the majority of these establishments are
small entities.
Printed Circuit Assembly (Electronic Assembly) Manufacturing. These
are establishments ``primarily engaged in loading components onto
printed circuit boards or who manufacture and ship loaded printed
circuit boards.'' The SBA developed a small business size standard of
500 or fewer employees for this category of manufacturing. According to
Census Bureau data, 868 establishments in this category operated with
payroll during 2002. Of these, 839 employed under 500, and 18 employed
500 to 999. The Commission estimates that the majority of these
establishments are small entities.
[[Page 43557]]
Other Electronic Component Manufacturing. The SBA developed a small
business size standard of 500 or fewer employees for this category of
manufacturing. According to Census Bureau data, 1,627 establishments in
this category operated with payroll during 2002. Of these, 1,616
employed under 500, and eight employed 500 to 999. The Commission
estimates that the majority of these establishments are small entities.
Fiber Optic Cable Manufacturing. These establishments manufacture
``insulated fiber-optic cable from purchased fiber-optic strand.'' The
SBA developed a small business size standard of 1,000 or fewer
employees for this category of manufacturing. According to Census
Bureau data, 96 establishments in this category operated with payroll
during 2002. Of these, 95 employed under 1,000, and one employed 1,000
to 2,499. The Commission estimates that the majority or all of these
establishments are small entities.
Other Communication and Energy Wire Manufacturing. These
establishments manufacture ``insulated wire and cable of nonferrous
metals from purchased wire.'' The SBA developed a small business size
standard of 1,000 or fewer employees for this category of
manufacturing. According to Census Bureau data, 356 establishments in
this category operated with payroll during 2002. Of these, 353 employed
under 1,000, and three employed 1,000 to 2,499. The Commission
estimates that the majority or all of these establishments are small
entities.
Description of Projected Reporting, Recordkeeping and Other Compliance
Requirements
Disability Access Requirements. (See FCC 07-110 at paragraphs 16-
20, 25-31). The Commission requires providers of interconnected VoIP
services and specialized equipment, and CPE manufacturers, to comply
with the disability access requirements contained in 47 CFR Part 6.
Covered entities must maintain records pertaining to their disability
access compliance efforts and designate, and submit contact information
for, an agent for service of disability access-related inquiries or
complaints. In addition, the rules we adopt today: (1) Require
manufacturers of specialized interconnected VoIP equipment or CPE to
ensure that their equipment is designed, developed and fabricated to be
accessible to individuals with disabilities, if readily achievable,
and, where such accessibility is not readily achievable, to ensure that
the equipment is compatible with existing peripheral devices or
specialized CPE, if readily achievable; (2) require interconnected VoIP
providers to ensure that their service is accessible to individuals
with disabilities, if readily achievable, and, where such accessibility
is not readily achievable, to ensure that the service is compatible
with existing peripheral devices or specialized CPE, if readily
achievable; (3) require covered manufacturers and service providers to
evaluate the accessibility, usability, and compatibility of covered
services and equipment throughout the design and development process;
and (4) require covered manufacturers and service providers to ensure
that information and documentation provided in connection with
equipment or services be accessible to people with disabilities, where
readily achievable, and that employee training, where provided at all,
account for accessibility requirements.
TRS Requirements. (See FCC 07-110 at paragraphs 16, 32-33, 36-40).
The Commission requires providers of interconnected VoIP service to
comply with the TRS requirements contained in our regulations, 47 CFR
64.601 et seq. (subpart F). Among the TRS requirements that the
Commission extends to interconnected VoIP providers, the Commission
requires such providers to contribute to the Interstate TRS Fund under
the Commission's existing contribution rules, and to offer 711
abbreviated dialing for access to relay services. These providers will
contribute to the Interstate TRS Fund through monthly or annual
payments into the Fund as specified in the Commission's TRS rules.
Interconnected VoIP provider payments into the Fund will be assessed on
the basis of revenue information these providers currently submit to
the Universal Service Administrative Company (USAC) on the FCC Form
499-A.
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 (among others) the following four alternatives: (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.
The Commission has considered how best to minimize any significant
economic impact on small entities and, in FCC 07-110, has attempted to
impose minimal regulation on small entities to the extent consistent
with its goal of ensuring that individuals with disabilities have
access to critical ``POTS-like'' communications services and equipment.
The Commission has taken several steps to minimize the economic impact
on small entities. For example, although the Commission requires
covered entities to maintain records of their accessibility efforts
that can be presented to the Commission to demonstrate compliance, the
Commission does not delineate specific documentation or certification
requirements for ``readily achievable'' analyses. In addition, by
adopting general performance criteria, as opposed to accessibility
standards or performance measurements specifying exactly how access
must be achieved, the Commission's rules provide small entities
flexibility in determining how best to manage their compliance with
these rules. Moreover, by adopting the ``readily achievable'' standard
that currently applies to telecommunications service providers and
manufacturers, covered interconnected VoIP providers and manufacturers
are required to render their services or products accessible only if
doing so is ``easily accomplishable and able to be carried out without
much difficulty or expense.'' Inasmuch as interconnected VoIP providers
will be permitted to file the identical Telecommunications Reporting
Worksheet (FCC Form 499-A) for the TRS reporting requirements that
these providers currently file in connection with the USF reporting
requirements, there will be no increased reporting burden on small
businesses. Finally, interconnected VoIP providers whose interstate
end-user revenues are deemed de minimis under the Commission's TRS
rules and procedures in a given Fund year, will be required to
contribute only $25 for that year. These measures should substantially
alleviate any economic burdens on small entities.
In taking the actions described above, the Commission undertook to
assess the interests of small businesses in light of the overriding
public interest in, and statutory goal of, making critical
communications services accessible by and to all Americans. Therefore,
the Commission concluded that it was important for all providers of
[[Page 43558]]
interconnected VoIP service and covered manufacturers, including small
businesses, to comply with the rules adopted in FCC 07-110, and the
Commission rejected alternative solutions that would have exempted
small businesses from these requirements. The record indicated that
exempting small carriers from these requirements would compromise the
Commission's goal of ensuring access to critical communications
services for all Americans.
Congressional Review Act
The Commission will send a copy of FCC 07-110, including this FRFA,
in a report to be sent to Congress and the Government Accountability
Office pursuant to the Congressional Review Act. In addition, the
Commission will send a copy of FCC 07-110, including this FRFA, to the
Chief Counsel for Advocacy of the SBA. A copy of FCC 07-110 and FRFA
(or summaries thereof) will also be published in the Federal Register.
Ordering Clauses
Pursuant to the authority contained in sections 1-4, 225, 251, 255,
and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C.
151-154, 225, 251, 255, and 303(r), the report and order is adopted.
Pursuant to the authority contained in sections 1-4, 225, 251, 255,
and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C.
151-154, 225, 251, 255, and 303(r), part 6 of the Commission's rules,
47 CFR part 6, is amended.
Pursuant to the authority contained in sections 1-4, 225, 251, 255,
and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C.
151-154, 225, 251, 255, and 303(r), part 64 of the Commission's rules,
47 CFR part 64, is amended.
The rules and requirements contained herein shall become effective
October 5, 2007, except for the amendments to 47 CFR 6.11(a) and (b),
6.18(b), 6.19, 64.604(a)(5), 64.604(c)(1) through (c)(3),
64.604(c)(5)(iii)(C), 64.604(c)(5)(iii)(E), 64.604(c)(5)(iii)(G),
64.604(c)(6)(v)(A)(3), 64.604(c)(6)(v)(G), 64.604(c)(7), and 64.606(b),
which contains information collection requirements that have not been
approved by the Office of Management and Budget (OMB). These rules and
requirements shall become effective upon OMB approval. The Commission
will publish a document in the Federal Register announcing the
effective date of these rules and requirements.
The Commission's Consumer & Governmental Affairs Bureau, Reference
Information Center, shall send a copy of the Report and Order,
including the Final Regulatory Flexibility Analysis, to the Chief
Counsel for Advocacy of the Small Business Administration.
List of Subjects
47 CFR Part 6
Communications equipment, Individuals with disabilities,
Telecommunications.
47 CFR Part 64
Individuals with disabilities, Telecommunications relay services.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Rule Changes
0
For the reasons discussed in the preamble, the Federal Communications
Commission amends 47 CFR parts 6 and 64 as follows:
PART 6--ACCESS TO TELECOMMUNICATIONS SERVICE, TELECOMMUNICATIONS
EQUIPMENT AND CUSTOMER PREMISES EQUIPMENT BY PERSONS WITH
DISABILITIES
0
1. The authority citation for part 6 is revised to read as follows:
Authority: 47 U.S.C. 151-154, 251, 255, and 303(r).
0
2. Section 6.1 is amended by revising paragraphs (b) and (c) and adding
paragraphs (d) and (e) to read as follows:
Sec. 6.1 Applicability.
* * * * *
(b) Any manufacturer of telecommunications equipment or customer
premises equipment;
(c) Any telecommunications carrier;
(d) Any provider of interconnected Voice over Internet Protocol
(VoIP) service, as that term is defined in Sec. 9.3 of this chapter;
and
(e) Any manufacturer of equipment or customer premises equipment
that is specially designed to provide interconnected VoIP service and
that is needed for the effective use of an interconnected VoIP service.
0
3. Section 6.3 is amended by revising paragraph (c); redesignating
paragraphs (e) through (k) as paragraphs (f) through (l), respectively;
adding a new paragraph (e); and revising newly redesignated paragraphs
(j) and (k) to read as follows:
Sec. 6.3 Definitions.
* * * * *
(c) The term customer premises equipment shall mean equipment
employed on the premises of a person (other than a carrier) to
originate, route, or terminate telecommunications. For purposes of this
part, the term customer premises equipment shall include equipment
employed on the premises of a person (other than a carrier) that is
specially designed to provide interconnected VoIP service and that is
needed for the effective use of an interconnected VoIP service.
* * * * *
(e) The term interconnected VoIP service shall have the same
meaning as in Sec. 9.3 of this chapter.
* * * * *
(j) The term telecommunications equipment shall mean equipment,
other than customer premises equipment, used by a carrier to provide
telecommunications services, and includes software integral to such
equipment (including upgrades). For purposes of this part, the term
telecommunications equipment shall include equipment that is specially
designed to provide interconnected VoIP service and that is needed for
the effective use of an interconnected VoIP service as that term is
defined in Sec. 9.3 of this chapter.
(k) The term telecommunications service shall mean the offering of
telecommunications for a fee directly to the public, or to such classes
of users as to be effectively available directly to the public,
regardless of the facilities used. For purposes of this part, the term
telecommunications service shall include ``interconnected VoIP
service'' as that term is defined in Sec. 9.3 of this chapter.
* * * * *
0
4. Section 6.11 is amended by adding a note to paragraphs (a) and (b)
to read as follows:
Sec. 6.11 Information, documentation, and training.
(a) * * *
* * * * *
Note to paragraph (a): The application of the reporting or
recordkeeping provisions included in paragraph (a) of this section
to interconnected VoIP providers and to manufacturers of equipment
that is specially designed to provide interconnected VoIP service
will be submitted for approval to the Office of Management and
Budget (OMB). They are not effective as to interconnected VoIP
providers and related manufacturers until OMB approval has been
obtained. The FCC will publish a notice of the effective date of the
reporting and recordkeeping provisions of this rule as to
interconnected VoIP providers and related equipment manufacturers
after it obtains OMB approval.
(b) * * *
[[Page 43559]]
Note to paragraph (b): The application of the reporting or
recordkeeping provisions included in paragraph (b) of this section
to interconnected VoIP providers and to manufacturers of equipment
that is specially designed to provide interconnected VoIP service
will be submitted for approval to the Office of Management and
Budget (OMB). They are not effective as to interconnected VoIP
providers and related manufacturers until OMB approval has been
obtained. The FCC will publish a notice of the effective date of the
reporting and recordkeeping provisions of this rule as to
interconnected VoIP providers and related equipment manufacturers
after it obtains OMB approval.
* * * * *
0
5. Section 6.18 is amended by adding a note to paragraph (b) to read as
follows:
Sec. 6.18 Procedure; designation of agents for service.
* * * * *
(b) * * *
Note to paragraph (b): The application of the reporting or
recordkeeping provisions included in paragraph (b) of this section
to interconnected VoIP providers and to manufacturers of equipment
that is specially designed to provide interconnected VoIP service
will be submitted for approval to the Office of Management and
Budget (OMB). They are not effective as to interconnected VoIP
providers and related manufacturers until OMB approval has been
obtained. The FCC will publish a notice of the effective date of the
reporting and recordkeeping provisions of this rule as to
interconnected VoIP providers and related equipment manufacturers
after it obtains OMB approval.
0
6. Section 6.19 is amended by adding a note to section 6.19 to read as
follows:
Sec. 6.19 Answers to informal complaints.
* * * * *
Note to section 6.19: The application of the reporting or
recordkeeping provisions included in Sec. 6.19 to interconnected
VoIP providers and to manufacturers of equipment that is specially
designed to provide interconnected VoIP service will be submitted
for approval to the Office of Management and Budget (OMB). They are
not effective as to interconnected VoIP providers and related
manufacturers until OMB approval has been obtained. The FCC will
publish a notice of the effective date of the reporting and
recordkeeping provisions of this rule as to interconnected VoIP
providers and related equipment manufacturers after it obtains OMB
approval.
PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS
0
7. An authority citation for subpart F is added to read as follows:
Authority: 47 U.S.C. 151-154, 225, 255, and 303(r).
0
8. Section 64.601 of subpart F is amended by:
0
a. Revising the section heading;
0
b. Redesignating the introductory text as paragraph (a) introductory
text;
0
c. Redesignating paragraphs (1) through (18) as paragraphs (a)(1)
through (a)(18);
0
d. Redesignating newly designated paragraphs (a)(9) through (a)(18) as
paragraphs (a)(10) through (a)(19), respectively;
0
e. Adding a new paragraph (a)(9); and
0
f. Adding a new paragraph (b) to read as follows:
Sec. 64.601 Definitions and provisions of general applicability.
(a) * * *
(9) Interconnected VoIP service. An interconnected Voice over
Internet protocol (VoIP) service is a service that:
(i) Enables real-time, two-way voice communications;
(ii) Requires a broadband connection from the user's location;
(iii) Requires Internet protocol-compatible customer premises
equipment (CPE); and
(iv) Permits users generally to receive calls that originate on the
public switched telephone network and to terminate calls to the public
switched telephone network.
* * * * *
(b) For purposes of this subpart, all regulations and requirements
applicable to common carriers shall also be applicable to providers of
interconnected VoIP service.
0
9. Section 64.604 is amended by adding a note to paragraphs (a)(5),
(c)(1) through (c)(3), (c)(5)(iii)(C), (c)(5)(iii)(E), (c)(5)(iii)(G),
(c)(6)(v)(A)(3), (c)(6)(v)(G) and (c)(7) to read as follows:
Sec. 64.604 Mandatory minimum standards.
* * * * *
(a) * * *
(5) * * *
Note to paragraph (a)(5): The application of the reporting or
recordkeeping provisions included in paragraph (a)(5) of this
section to interconnected VoIP providers will be submitted for
approval to the Office of Management and Budget (OMB). They are not
effective as to interconnected VoIP providers until OMB approval has
been obtained. The FCC will publish a notice of the effective date
of the reporting and recordkeeping provisions of this rule as to
interconnected VoIP providers after it obtains OMB approval.
* * * * *
(c) * * *
(1) * * *
* * * * *
Note to paragraph (c)(1): The application of the reporting or
recordkeeping provisions included in paragraph (c)(1) of this
section to interconnected VoIP providers will be submitted for
approval to the Office of Management and Budget (OMB). They are not
effective as to interconnected VoIP providers until OMB approval has
been obtained. The FCC will publish a notice of the effective date
of the reporting and recordkeeping provisions of this rule as to
interconnected VoIP providers after it obtains OMB approval.
* * * * *
(2) * * *
* * * * *
Note to paragraph (c)(2): The application of the reporting or
recordkeeping provisions included in paragraph (c)(2) of this
section to interconnected VoIP providers will be submitted for
approval to the Office of Management and Budget (OMB). They are not
effective as to interconnected VoIP providers until OMB approval has
been obtained. The FCC will publish a notice of the effective date
of the reporting and recordkeeping provisions of this rule as to
interconnected VoIP providers after it obtains OMB approval.
* * * * *
(3) * * *
Note to paragraph (c)(3): The application of the reporting or
recordkeeping provisions included in paragraph (c)(3) of this
section to interconnected VoIP providers will be submitted for
approval to the Office of Management and Budget (OMB). They are not
effective as to interconnected VoIP providers until OMB approval has
been obtained. The FCC will publish a notice of the effective date
of the reporting and recordkeeping provisions of this rule as to
interconnected VoIP providers after it obtains OMB approval.
* * * * *
(5) * * *
(iii) * * *
(C) * * *
Note to paragraph (c)(5)(iii)(C): The application of the
reporting or recordkeeping provisions included in paragraph
(c)(5)(iii)(C) of this section to interconnected VoIP providers will
be submitted for approval to the Office of Management and Budget
(OMB). They are not effective as to interconnected VoIP providers
until OMB approval has been obtained. The FCC will publish a notice
of the effective date of the reporting and recordkeeping provisions
of this rule as to interconnected VoIP providers after it obtains
OMB approval.
* * * * *
(E) * * *
Note to paragraph (c)(5)(iii)(E): The application of the
reporting or recordkeeping provisions included in paragraph
(c)(5)(iii)(E) of this section to interconnected VoIP providers will
be submitted for approval to the Office of Management and Budget
(OMB). They are not effective as to interconnected VoIP providers
until OMB approval has been obtained. The FCC will publish a notice
of the effective date of the reporting and recordkeeping provisions
of this rule as to interconnected VoIP providers after it obtains
OMB approval.
* * * * *
[[Page 43560]]
(G) * * *
Note to paragraph (c)(5)(iii)(G): The application of the
reporting or recordkeeping provisions included in paragraph
(c)(5)(iii)(G) of this section to interconnected VoIP providers will
be submitted for approval to the Office of Management and Budget
(OMB). They are not effective as to interconnected VoIP providers
until OMB approval has been obtained. The FCC will publish a notice
of the effective date of the reporting and recordkeeping provisions
of this rule as to interconnected VoIP providers after it obtains
OMB approval.
* * * * *
(6) * * *
(v) * * *
(A) * * *
(3) * * *
Note to paragraph (c)(6)(v)(A)(3): The application of the
reporting or recordkeeping provisions included in paragraph
(c)(6)(v)(A)(3) of this section to interconnected VoIP providers
will be submitted for approval to the Office of Management and
Budget (OMB). They are not effective as to interconnected VoIP
providers until OMB approval has been obtained. The FCC will publish
a notice of the effective date of the reporting and recordkeeping
provisions of this rule as to interconnected VoIP providers after it
obtains OMB approval.
* * * * *
(G) * * *
Note to paragraph (c)(6)(v)(G): The application of the reporting
or recordkeeping provisions included in paragraph (c)(6)(v)(G) of
this section to interconnected VoIP providers will be submitted for
approval to the Office of Management and Budget (OMB). They are not
effective as to interconnected VoIP providers until OMB approval has
been obtained. The FCC will publish a notice of the effective date
of the reporting and recordkeeping provisions of this rule as to
interconnected VoIP providers after it obtains OMB approval.
* * * * *
(7) * * *
Note to paragraph (c)(7): The application of the reporting or
recordkeeping provisions included in paragraph (c)(7) of this
section to interconnected VoIP providers will be submitted for
approval to the Office of Management and Budget (OMB). They are not
effective as to interconnected VoIP providers until OMB approval has
been obtained. The FCC will publish a notice of the effective date
of the reporting and recordkeeping provisions of this rule as to
interconnected VoIP providers after it obtains OMB approval.
0
10. Section 64.606 is amended by adding a note to paragraph (b) to read
as follows:
Sec. 64.606 Furnishing related customer premises equipment.
* * * * *
(b) * * *
* * * * *
Note to paragraph (b): The application of the reporting or
recordkeeping provisions included in paragraph (b) of this section
to interconnected VoIP providers will be submitted for approval to
the Office of Management and Budget (OMB). They are not effective as
to interconnected VoIP providers until OMB approval has been
obtained. The FCC will publish a notice of the effective date of the
reporting and recordkeeping provisions of this rule as to
interconnected VoIP providers after it obtains OMB approval.
[FR Doc. E7-15086 Filed 8-3-07; 8:45 am]
BILLING CODE 6712-01-P