[Federal Register: March 4, 2008 (Volume 73, Number 43)]
[Proposed Rules]
[Page 11587-11591]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04mr08-27]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 32, 36, 54 and 63
[WC Docket No. 05-337; CC Docket No. 96-45; FCC 08-22]
High-Cost Universal Service Support; Federal-State Joint Board on
Universal Service
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: In this document, the Commission seeks comment on the
Recommended Decision of the Federal-State Joint Board on Universal
Service, released on November 20, 2007, regarding comprehensive reform
of high-cost universal service. We also incorporate by reference the
Identical Support NPRM and the Reverse Auctions NPRM into this NPRM. In
addition, we will incorporate the records developed in response to
those two items into this proceeding.
DATES: Comments are due on or before April 3, 2008 and reply comments
are due on or before May 5, 2008.
ADDRESSES: You may submit comments, identified by WC Docket No. 05-337
and CC Docket No. 96-45, by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web Site: http://
www.fcc.gov/cgb/ecfs/. Follow the instructions for submitting comments.
E-mail: ecfs@fcc.gov, and include the following words in
the body of the message, ``get form.'' A sample form and directions
will be sent in response. Include the docket number in the subject line
of the message.
Mail: Secretary, Federal Communications Commission, 445
12th Street, SW., Washington, DC 20554.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by e-mail: FCC504@fcc.gov or phone: 202-418-
0530 or TTY: 202-418-0432.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: Ted Burmeister or Katie King, Wireline
Competition Bureau, Telecommunications Access Policy Division, 202-418-
7400 or TTY: 202-418-0484.
SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's
Notice of Proposed Rulemaking in WC Docket No. 05-337, CC Docket No.
96-45, FCC 08-22, adopted January 16, 2008, and released January 29,
2008. The complete text of this document is available for inspection
and copying during normal business hours in the FCC Reference
Information Center, Portals II, 445 12th Street, SW., Room CY-A257,
Washington, DC 20554.
The document may also be purchased from the Commission's
duplicating contractor, Best Copy and Printing, Inc., 445 12th Street,
SW., Room CY-B402, Washington, DC 20554, telephone (800) 378-3160 or
(202) 863-2893, facsimile (202) 863-2898, or via e-mail at http://
www.bcpiweb.com. It is also available on the Commission's Web site at
http://www.fcc.gov.
Initial Paperwork Reduction Act of 1995 Analysis
This document does not contain proposed information collection(s)
subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-
13. In addition, therefore, it does not contain any new or modified
``information collection burden for small business concerns with fewer
than 25 employees,'' pursuant to the Small Business Paperwork Relief
Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).
Synopsis of the Notice of Proposed Rulemaking
Introduction
1. In this Notice of Proposed Rulemaking (NPRM), we seek comment on
ways to reform the high-cost universal service program. Specifically,
we seek comment on the recommendation of the Federal-State Joint Board
on Universal Service (Joint Board) regarding comprehensive reform of
high-cost universal service support. Federal-State Joint Board on
Universal Service, Recommended Decision, 22 FCC Rcd 20477 (2007)
(Recommended Decision). We also incorporate into this NPRM the
following two Notices of Proposed Rulemaking: (1) The Notice of
Proposed Rulemaking released by the Commission on January 29, 2008,
which seeks comment on the Commission's rules governing the amount of
high-cost universal service support provided to eligible
telecommunications carriers (ETCs), including elimination of the
``identical support rule;'' and (2) the Notice of Proposed Rulemaking
released by the Commission on January 29, 2008, which seeks comment on
whether and how to implement reverse auctions (a form of competitive
bidding) as the disbursement mechanism for determining the amount of
high-cost universal service support for ETCs serving rural, insular,
and high-cost areas. High-Cost Universal Service Support; Federal-State
Joint Board on Universal Service, Notice of Proposed Rulemaking, FCC
08-4 (rel. Jan. 29, 2008) (Identical Support Rule NPRM); High-Cost
Universal Service Support; Federal-State Joint Board on Universal
Service, Notice of Proposed Rulemaking, FCC 08-5 (rel. Jan. 29, 2008)
(Reverse Auctions NPRM). We also will incorporate the records developed
in response to those NPRMs into this proceeding. We note, however, that
such incorporation of these two NPRMs does not change or otherwise
affect, and we expressly preserve, the positions of the Commission
members with regard to those particular NPRMs and the Joint Board's
recommendation.
Background
2. In the Telecommunications Act of 1996 (1996 Act), Congress
sought to preserve and advance universal service while, at the same
time, opening all telecommunications markets to competition.
Telecommunications Act of 1996, Public Law 104-104 (1996). Section
254(b) of the Act, which was added by the 1996 Act, directs the Joint
Board and the Commission to base policies for the preservation and
advancement of universal service on
[[Page 11588]]
several general principles, plus other principles that the Commission
may establish. 47 U.S.C. 254(b). Among other things, there should be
specific, predictable, and sufficient federal and state universal
service support mechanisms; quality services should be available at
just, reasonable, and affordable rates; and consumers in all regions of
the nation should have access to telecommunications services that are
reasonably comparable to those services provided in urban areas at
reasonably comparable rates. 47 U.S.C. 254(b)(1), (3), (5). Section
254(e) of the Act provides that only ETCs designated under section
214(e) shall be eligible to receive federal universal service support,
and that any such support should be explicit and sufficient to achieve
the purposes of that section. 47 U.S.C. 214(e), 254(e).
3. In 2002, the Commission asked the Joint Board to review certain
of the Commission's rules related to the high-cost universal service
support mechanisms. Federal-State Joint Board on Universal Service, 67
FR 70703, November 26, 2002. Among other things, the Commission asked
the Joint Board to review the Commission's rules relating to high-cost
universal service support in study areas in which a competitive ETC
provides service. In response, the Joint Board made a number of
recommendations concerning the designation of ETCs in high-cost areas,
but declined to recommend that the Commission modify the basis of
support (i.e., the methodology used to calculate support) in study
areas with multiple ETCs. Federal-State Joint Board on Universal
Service, Recommended Decision, 19 FCC Rcd 4257 (2004). Instead, the
Joint Board recommended that it and the Commission continue to consider
possible modifications to the basis of support for competitive ETCs as
part of an overall review of the high-cost support mechanisms for rural
and non-rural carriers.
4. In 2004, the Commission asked the Joint Board to review the
Commission's rules relating to the high-cost universal service support
mechanisms for rural carriers and to determine the appropriate rural
mechanism to succeed the plan adopted in the Rural Task Force Order.
Federal-State Joint Board on Universal Service, Order, 69 FR 48232,
August 9, 2004 (Rural Referral Order); Rural Task Force Order, 66 FR
30080, June 5, 2001. In August 2004, the Joint Board sought comment on
issues the Commission referred to it related to the high-cost universal
service support mechanisms for rural carriers. Federal-State Joint
Board on Universal Service Seeks Comment on Certain of the Commission's
Rules Relating to High-Cost Universal Service Support, Public Notice,
69 FR 53917, September 3, 2004. The Joint Board also specifically
sought comment on the methodology for calculating support for ETCs in
competitive study areas. Since that time, the Joint Board has sought
comment on a variety of specific proposals for addressing the issues of
universal service support for rural carriers and the basis of support
for competitive ETCs, including proposals developed by members and
staff of the Joint Board, as well as the use of reverse auctions
(competitive bidding) to determine high-cost universal service funding
to ETCs. Federal-State Joint Board on Universal Service Seeks Comment
on Proposals to Modify the Commission's Rules Relating to High-Cost
Universal Service Support, 20 FCC Rcd 14267 (2005); Federal-State Joint
Board on Universal Service Seeks Comment on the Merits of Using
Auctions to Determine High-Cost Universal Service Support, 71 FR 50420,
August 25, 2006.
5. On May 1, 2007, the Joint Board recommended that the Commission
adopt an interim cap on high-cost universal service support provided to
competitive ETCs to stem the dramatic growth in high-cost support.
High-Cost Universal Service Support; Federal-State Joint Board on
Universal Service, Recommended Decision, 22 FCC Rcd 8998 (2007).
Specifically, the Joint Board recommended that the Commission cap the
amount of support that competitive ETCs may receive for each state
based on the average level of competitive ETC support distributed in
that state in 2006. The Joint Board further recommended that the
interim cap apply until one year from the date that the Joint Board
makes its recommendation regarding comprehensive and fundamental high-
cost universal service reform. The Joint Board also recommended that
the Commission consider abandoning or modifying the so-called
``identical support'' rule in any reform it ultimately adopts. On May
14, 2007, the Commission released a Notice of Proposed Rulemaking,
seeking comment on the Joint Board's recommendation regarding the
interim cap on competitive ETC support. Federal-State Joint Board on
Universal Service, Notice of Proposed Rulemaking, 22 FCC Rcd 9705
(2007).
6. In a companion Public Notice, released May 1, 2007, the Joint
Board sought comment on various proposals to reform the high-cost
universal service support mechanisms. Federal-State Joint Board on
Universal Service Seeks Comment on Long Term, Comprehensive High-Cost
Universal Service Reform, Public Notice, 22 FCC Rcd 9023 (2007).
Specifically the Joint Board sought comment on the following issues and
proposals: (1) The use of reverse auctions to determine high-cost
universal service support; (2) the use of GIS technology and network
cost modeling to better calculate and target support at more granular
levels; (3) disaggregation of support; (4) the methodology for
calculating support for competitive ETCs; and (5) whether universal
service funding should be used to promote broadband deployment.
7. Finally, the Commission recently adopted two Notices of Proposed
Rulemaking, which seek comment on specific high-cost universal service
comprehensive reform proposals. First, on January 9, 2008, the
Commission adopted the Identical Support NPRM, which seeks comment on
the Commission's rules governing the amount of high-cost universal
service support provided to ETCs and tentatively concludes that the
Commission should eliminate the ``identical support'' rule. Identical
Support Rule NPRM, FCC 08-4. Second, on January 9, 2008, the Commission
adopted the Reverse Auctions NPRM, which tentatively concludes that
reverse auctions should be used as the disbursement mechanism to
determine the amount of high-cost universal service for ETCs serving
rural, insular, and high-cost areas and seeks comment on how to
implement reverse auctions for this purpose. Reverse Auctions NPRM, FCC
08-5.
Discussion
8. On November 20, 2007, the Federal-State Joint Board on Universal
Service issued its Recommended Decision regarding comprehensive reform
of high-cost universal service. Recommended Decision, 22 FCC Rcd 20477
(2007). In this NPRM, we seek comment on the Joint Board's
recommendations contained in the Recommended Decision.
9. We also incorporate by reference the Identical Support NPRM and
the Reverse Auctions NPRM into this NPRM. In addition, we will
incorporate the records developed in response to those two items into
this proceeding. We thus request that parties who file comments in
response to either or both of those items include those comments as
part of their filings in response to this NPRM. We note, however, that
such incorporation of these two NPRMs does not change or otherwise
affect, and we expressly preserve, the positions of the Commission
members with regard to
[[Page 11589]]
those particular NPRMs and the Joint Board's recommendation.
Procedural Matters
10. Pursuant to Sec. Sec. 1.415 and 1.419 of the Commission's
rules, 47 CFR 1.415, 1.419, interested parties may file comments on or
before April 3, 2008 and reply comments are due on or before May 5,
2008. Comments may be filed using: (1) the Commission's Electronic
Comment Filing System (ECFS), (2) the Federal Government's eRulemaking
Portal, or (3) by filing paper copies. See Electronic Filing of
Documents in Rulemaking Proceedings, 63 FR 24121, May 1, 1998.
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: http://www.fcc.gov/cgb/ecfs/
or the Federal eRulemaking Portal: http://www.regulations.gov. Filers
should follow the instructions provided on the Web site for submitting
comments.
For ECFS filers, if multiple docket or rulemaking numbers
appear in the caption of this proceeding, filers must transmit one
electronic copy of the comments for each docket or rulemaking number
referenced in the caption. In completing the transmittal screen, filers
should include their full name, U.S. Postal Service mailing address,
and the applicable docket or rulemaking number. Parties may also submit
an electronic comment by Internet e-mail. To get filing instructions,
filers should send an e-mail to ecfs@fcc.gov, and include the following
words in the body of the message, ``get form.'' A sample form and
directions will be sent in response.
Paper Filers: Parties who choose to file by paper must
file an original and four copies of each filing. If more than one
docket or rulemaking number appears in the caption of this proceeding,
filers must submit two additional copies for each additional docket or
rulemaking number.
Filings can be sent by hand or messenger delivery, by
commercial overnight courier, or by first-class or overnight U.S.
Postal Service mail (although we continue to experience delays in
receiving U.S. Postal Service mail). All filings must be addressed to
the Commission's Secretary, Office of the Secretary, Federal
Communications Commission.
The Commission's contractor will receive hand-delivered or
messenger-delivered paper filings for the Commission's Secretary at 236
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be
held together with rubber bands or fasteners. Any envelopes must be
disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority
mail must be addressed to 445 12th Street, SW., Washington, DC 20554.
People with Disabilities: 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), 202-
418-0432 (tty).
Ex Parte Requirements
11. These matters shall be treated as a ``permit-but-disclose''
proceeding in accordance with the Commission's ex parte rules. 47 CFR
1.1200 through 1.1216. Persons making oral ex parte presentations are
reminded that memoranda summarizing the presentations must contain
summaries of the substance of the presentations and not merely a
listing of the subjects discussed. More than a one or two sentence
description of the views and arguments presented is generally required.
47 CFR 1.1206(b)(2). Other requirements pertaining to oral and written
presentations are set forth in Sec. 1.1206(b) of the Commission's
rules. 47 CFR 1.1206(b).
Initial Regulatory Flexibility Analysis
12. As required by the Regulatory Flexibility Act (RFA), 5 U.S.C.
603, the Commission has prepared this Initial Regulatory Flexibility
Analysis (IRFA) of the possible significant economic impact on small
entities by the policies and rules proposed in the NPRM. Written public
comments are requested on this IRFA, which is set forth below. Comments
must be identified as responses to the IRFA and must be filed on or
before April 3, 2008. The Commission will send a copy of the NPRM,
including this IRFA, to the Chief Counsel for Advocacy of the Small
Business Administration (SBA). 5 U.S.C. 603(a).
Need for, and Objectives of, the Proposed Rules
13. In the Telecommunications Act of 1996 (1996 Act), Congress
sought to preserve and advance universal service while, at the same
time, opening all telecommunications markets to competition.
Telecommunications Act of 1996, Public Law 104-104 (1996). Section
254(b) of the Act directs the Federal-State Joint Board on Universal
Service (Joint Board) and the Commission to base policies for the
preservation and advancement of universal service on several general
principles, plus other principles that the Commission may establish.
Section 254(e) provides that only eligible telecommunications carriers
(ETCs) designated under section 214(e) shall be eligible to receive
federal universal service support, and any such support should be
explicit and sufficient to achieve the purposes of that section.
14. In this NPRM, we seek comment on ways to reform the high-cost
universal service program. Specifically, we seek comment on the
recommendation of the Joint Board regarding comprehensive reform of
high-cost universal service support. Recommended Decision, 22 FCC Rcd
20477 (2007). We also incorporate into this NPRM the following two
Notices of Proposed Rulemaking: (1) The Notice of Proposed Rulemaking
released by the Commission on January 29, 2008. which seeks comment on
the Commission's rules governing the amount of high-cost universal
service support provided to eligible telecommunications carriers
(ETCs), including elimination of the ``identical support rule;'' and
(2) the Notice of Proposed Rulemaking released by the Commission on
January 29, 2008, which seeks comment on whether and how to implement
reverse auctions (a form of competitive bidding) as the disbursement
mechanism for determining the amount of high-cost universal service
support for ETCs serving rural, insular, and high-cost areas. Identical
Support Rule NPRM, FCC 08-4; Reverse Auctions NPRM, FCC 08-5. We also
will incorporate the records developed in response to those Notices of
Proposed Rulemaking into this proceeding. We note, however, that such
incorporation of these two NPRMs does not change or otherwise affect,
and we expressly preserve, the positions of the Commission members with
regard to those particular NPRMs and the Joint Board's recommendation.
Legal Basis
15. The legal basis for any action that may be taken pursuant to
the NPRM is contained in sections 1, 2, 4(i), 4(j), 201 through 205,
214, 254, and 403 of the Communications Act of 1934, as amended, and
Sec. Sec. 1.1, 1.411 through 1.419, and 1.1200 through 1.1216 of the
Commission's rules. 47 U.S.C. 151, 152, 154(i) through (j), 201 through
205, 214, 254, 403; 47 CFR 1.1, 1.411 through 1.419, 1.1200 through
1.1216.
[[Page 11590]]
Description and Estimate of the Number of Small Entities to Which Rules
Will Apply
16. 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, if adopted. 5 U.S.C. 604(a)(3). The RFA
generally defines the term ``small entity,'' 5 U.S.C. 601(6), as having
the same meaning as the terms ``small business,'' 5 U.S.C. 601(3),
``small organization,'' 5 U.S.C. 601(4), and ``small governmental
jurisdiction.'' 5 U.S.C. 601(5). In addition, the term ``small
business'' has the same meaning as the term ``small business concern''
under the Small Business Act, unless the Commission has developed one
or more definitions that are appropriate to its activities. 5 U.S.C.
601(3). Under the Small Business Act, a ``small business concern'' is
one that: (1) Is independently owned and operated; (2) is not dominant
in its field of operation; and (3) meets any additional criteria
established by the Small Business Administration (SBA). 15 U.S.C. 632.
Nationwide, there are a total of approximately 22.4 million small
businesses, according to SBA data. A small organization is generally
``any not-for-profit enterprise which is independently owned and
operated and is not dominant in its field.'' 5 U.S.C. 601(4).
Nationwide, as of 2002, there were approximately 1.6 million small
organizations.
17. The most reliable source of information regarding the total
numbers of certain common carrier and related providers nationwide, as
well as the number of commercial wireless entities, is the data that
the Commission publishes in its Trends in Telephone Service report. The
SBA has developed small business size standards for wireline and
wireless small businesses within the three commercial census categories
of Wired Telecommunications Carriers, Paging, and Cellular and Other
Wireless Telecommunications. 13 CFR 121.201. Under these categories, a
business is small if it has 1,500 or fewer employees. Below, using the
above size standards and others, we discuss the total estimated numbers
of small businesses that might be affected by our actions.
Wireline Carriers and Service Providers
18. We have included small incumbent local exchange carriers (LECs)
in this present RFA analysis. As noted above, a ``small business''
under the RFA is one that, inter alia, meets the pertinent small
business size standard (e.g., a telephone communications business
having 1,500 or fewer employees), and ``is not dominant in its field of
operation.'' 15 U.S.C. 632. The SBA's Office of Advocacy contends that,
for RFA purposes, small incumbent LECs are not dominant in their field
of operation because any such dominance is not ``national'' in scope.
We have therefore included small incumbent LECs in this RFA analysis,
although we emphasize that this RFA action has no effect on Commission
analyses and determinations in other, non-RFA contexts.
19. Incumbent LECs. Neither the Commission nor the SBA has
developed a size standard for small businesses specifically applicable
to incumbent LECs. The closest applicable size standard under SBA rules
is for Wired Telecommunications Carriers. Under that size standard,
such a business is small if it has 1,500 or fewer employees. 13 CFR
121.201. According to Commission data, 1,307 carriers reported that
they were engaged in the provision of local exchange services. Of these
1,307 carriers, an estimated 1,019 have 1,500 or fewer employees, and
288 have more than 1,500 employees. Consequently, the Commission
estimates that most providers of incumbent local exchange service are
small businesses that may be affected by our action.
20. Competitive LECs, Competitive Access Providers (CAPs),
``Shared-Tenant Service Providers,'' and ``Other Local Service
Providers.'' Neither the Commission nor the SBA has developed a small
business size standard specifically for these service providers. The
appropriate size standard under SBA rules is for the category Wired
Telecommunications Carriers. Under that size standard, such a business
is small if it has 1,500 or fewer employees. 13 CFR 121.201. According
to Commission data, 859 carriers reported that they were engaged in the
provision of either competitive LEC or CAP 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 competitive
LECs, CAPs, ``Shared-Tenant Service Providers,'' and ``Other Local
Service Providers'' are small entities that may be affected by our
action.
Wireless Carriers and Service Providers
21. 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.'' 13 CFR 121.201. Under both categories, the SBA
deems a wireless business to be 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.
22. 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. 13 CFR 121.201. Under that SBA small
business size standard, a business is small if it has 1,500 or fewer
employees. According to Commission data, 432 carriers reported that
they were engaged in the provision of wireless telephony. We have
estimated that 221 of these are small under the SBA small business size
standard.
Satellite Service Providers
23. Satellite Telecommunications and Other Telecommunications.
There is no small business size standard developed specifically for
providers of international service. The appropriate size standards
under SBA rules are for the two broad census categories of ``Satellite
Telecommunications'' and ``Other Telecommunications.'' Under both
categories, such a business is small if it has $13.5 million or less in
average annual receipts. 13 CFR 121.201.
24. The first category of Satellite Telecommunications ``comprises
establishments primarily engaged in
[[Page 11591]]
providing point-to-point telecommunications services to other
establishments in the telecommunications and broadcasting industries by
forwarding and receiving communications signals via a system of
satellites or reselling satellite telecommunications.'' For this
category, Census Bureau data for 2002 show that there were a total of
371 firms that operated for the entire year. Of this total, 307 firms
had annual receipts of under $10 million, and 26 firms had receipts of
$10 million to $24,999,999. Consequently, we estimate that the majority
of Satellite Telecommunications firms are small entities that might be
affected by our action.
25. 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 our action.
Description of Projected Reporting, Recordkeeping, and Other Compliance
Requirements
26. This NPRM seeks comment on ways to reform the high-cost
universal service program. Specifically, the NPRM seeks comment on the
recommendation of the Joint Board regarding comprehensive reform of
high-cost universal service support. The Joint Board recommended the
creation of three distinct high-cost funds; a broadband fund, a
mobility fund, and a provider of last resort fund. If the Commission
ultimately adopts the Joint Board's recommendations, new or additional
reporting requirements may be required for carriers to receive support
under a three-fund approach. Additionally, the NPRM incorporates by
reference two NPRMs addressing the adoption of a reverse auctions
approach for distributing high-cost support, and the elimination of the
identical support rule for competitive eligible telecommunications
carriers. Projected reporting, recordkeeping, and other compliance
requirements are discussed in the IRFAs of those NPRMs.
Steps Taken To Minimize Significant Economic Impact on Small Entities,
and Significant Alternatives Considered
27. The RFA requires an agency to describe any significant
alternatives that it has considered in reaching its proposed approach,
which may include the following four alternatives (among others): (1)
The establishment of differing compliance and reporting requirements or
timetables that take into account the resources available to small
entities; (2) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for small entities;
(3) the use of performance, rather than design, standards; and (4) an
exemption from coverage of the rule, or part thereof, for small
entities. 5 U.S.C. 603(c).
28. This NPRM seeks comment on ways to reform the high-cost
universal service program, including recommendations issued by the
Joint Board. The Commission expects to consider the economic impact on
small entities, as identified in comments filed in response to the
NPRM, in reaching its final conclusions and taking action in this
proceeding. To the degree that the other NPRMs that the NPRM includes
by reference offer alternatives that may minimize the significant
economic impact on small entities, those alternatives will be
considered as well.
Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
29. None.
Ordering Clauses
30. Accordingly, it is ordered that, pursuant to the authority
contained in sections 1, 2, 4(i), 4(j), 201 through 205, 214, 254, and
403 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 152,
154(i) through (j), 201 through 205, 214, 254, 403 and Sec. Sec. 1.1,
1.411 through 1.419, and 1.1200 through 1.1216 of the Commission's
rules, 47 CFR 1.1, 1.411 through 1.419, 1.1200 through 1.1216, this
Notice of Proposed Rulemaking Is Adopted.
31. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Notice of Proposed Rulemaking, including the Initial
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of
the Small Business Administration.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. E8-4143 Filed 3-3-08; 8:45 am]
BILLING CODE 6712-01-P