[Federal Register: October 18, 2004 (Volume 69, Number 200)]
[Rules and Regulations]
[Page 61317-61321]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18oc04-9]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[WT Docket No. 99-266; FCC 04-202]
Extending Wireless Telecommunications Services to Tribal Lands
AGENCY: Federal Communications Commission.
ACTION: Final rules.
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SUMMARY: In this rule, the Commission modifies limited aspects of the
rules previously adopted in this proceeding to provide incentives for
wireless telecommunications carriers to serve individuals living on
tribal lands. Specifically, the Commission raises the wireline
telephone penetration rate at which tribal lands are eligible for a
bidding credit from 70 percent or less, to 85 percent or less. The
Commission also increases the amount of the bidding credit available to
carriers that pledge to deploy on and serve qualifying tribal lands.
DATES: Effective December 17, 2004.
FOR FURTHER INFORMATION CONTACT: Renee Crittendon or Michael Connelly,
Wireless Telecommunications Bureau, at (202) 418-0620.
SUPPLEMENTARY INFORMATION: This is a summary of the Federal
Communications Commission's Third Report and Order, FCC 04-202, adopted
August 18, 2004, and released September 2, 2004. The full text of the
Third Report and Order is available for public inspection during
regular business hours at the FCC Reference Information Center, 445
12th St., SW., Room CY-A257, Washington, DC 20554. The complete text
may be purchased from the Commission's duplicating contractor: Best
Copy & Printing, Inc., 445 12th Street, SW., Room CY-B402, Washington,
DC 20554, telephone 800-378-3160, facsimile 202-488-5563, or via e-mail
at http://www.fcc@bcpiweb.com">www.fcc@bcpiweb.com.
Synopsis of Report and Order
I. Background
1. In June 2000, the Commission issued a First Report and Order, 65
FR 47349, August 2, 2000 (First R&O) which established the tribal lands
bidding credit program and limited availability of the credit to
federally recognized tribal areas with telephone penetration rates
equal to or less than 70 percent, concluding that the bidding credits
would assist tribal communities with the greatest need for access to
telecommunications service. The Commission's Second Report and Order at
68 FR 23417, May 2, 2003, modified and clarified aspects of the bidding
credit procedures, including: extending the deadline for obtaining the
certifications from the applicable tribal governments from 90 to 180
days; clarifying the obligations of an assignee that has received the
license from a licensee awarded a tribal lands bidding credit;
requiring licensees to file an attachment along with their notification
of construction; stating that it is providing coverage to 75 percent of
the population of the tribal area for which the credit was awarded; and
codifying penalties for failure to comply with build-out requirements,
and failure to timely repay the bidding credit.
2. In the Second Further Notice, 18 FCC Rcd 4775, March 14, 2003,
the Commission sought comment on four discrete issues. First, the
Commission asked whether it should reconsider or moderate the buildout
obligations imposed on carriers in light of the lack of participation
in the bidding credit program. Next, the Commission asked for comments
on whether and how the bidding credit limit and formula might be
modified to provide greater incentive for carriers to deploy facilities
on tribal lands. Then, the Commission sought comment on whether it
should adjust the bidding credit formula to incorporate data from the
2000 Census figures rather than the 1990 figures in calculating tribal
penetration for purposes of determining eligibility for the credit.
Finally, the Commission sought comment on allowing carriers who obtain
tribal lands bidding credits, to obtain additional credit for extending
their coverage to immediately adjacent non-tribal areas that also have
low penetration rates.
II. Discussion
A. Modifying the Construction Requirements of the Tribal Lands Bidding
Credit
3. In the Second Further Notice, the Commission sought comment on
modifying the requirement that, within three years of grant of a
license, a carrier must cover 75 percent of the tribal area for which
the bidding credit was awarded. The Commission's underlying objective
in applying the more stringent construction requirement was to
encourage winning bidders that are committed to providing
telecommunications services in Indian Country, and that will deploy
those services rapidly. The Commission continues to believe that the
heightened requirement serves those dual purposes, and believes that
relaxing these requirements is not necessary to further the goals of
the bidding credit program. The Commission also notes that should a
carrier be unable to fulfill its construction requirement at the end of
three years, it may seek a waiver from the relevant Commission rule.
Therefore, the Commission determined not to modify the construction
requirement. Rather, it strongly encourages parties to seek waivers of
specific rules or file other requests for regulatory relief in those
instances where greater flexibility than the rules allow would
facilitate the provision of service to tribal lands. Also, because the
Commission recognizes the unique sovereign status of Indian tribes, the
trust relationship between the federal government and Indian tribes,
and the Commission's ongoing federal obligation to guarantee the right
of Indian tribes to self-government, the Commission declined to adopt a
suggestion to allow applicants, as opposed to tribal governments, to
certify compliance with certain baseline eligibility requirements.
B. Increasing the Bidding Credit Limit
4. In the Second Further Notice, the Commission asked commenters
whether the current credit amounts were adequate or whether the bidding
credit limit, as presently structured, was insufficient for applicants
to recover costs for building on tribal lands. Determining that an
increase in the bidding credit limit is warranted in order to further
mitigate the economic risk associated with provision of service, the
Commission adopted the following formula for calculating the credit
amount. A winning bidder may receive a $500,000 credit for up to the
first 200 square miles (518 square kilometers) of qualifying tribal
land within its license area. In instances where qualifying tribal
lands within a license area exceed 200 square miles (518 kilometers), a
winning bidder may receive an additional $2500 per square mile (2.59
square kilometers), or $500,000 for each additional 200 square
[[Page 61318]]
miles (518 square kilometers). All credits will be subject to a maximum
limit based on the gross bid amount for the license for which the
credit is sought. Where the gross bid amount is $1 million or less, the
cap will be 50 percent of the gross bid. Where the gross bid amount is
greater than $1 million and equal to or less than $2 million, the cap
will be $500,000. Finally, where the gross bid amount exceeds $2
million, the cap will be 35 percent of the gross bid.
C. Adjustment of the Eligibility Criteria Based on 2000 Census Data
5. In the Second Further Notice, the Commission noted that the
statistics used in the initial notice for the tribal lands bidding
credit program cited 1990 Census data, which showed that basic
telecommunications service to Indian Country generally was well below
the national average. The Commission sought comment on the advisability
of using data from the 2000 Census, which indicated that average
telephone penetration rates on tribal lands increased markedly during
the 1990s, asking how that new information should be incorporated into
the bidding credit formula.
6. While the increased rates in penetration, subscribership, and
facilities deployment reflect the Commission's resolve in assuring that
all Americans, including those living in Indian Country, have the
benefits of access to basic telecommunications services, the Commission
noted, nevertheless, that well over half of tribes continue to have
penetration rates below our national average. The Commission therefore
raised the telephone penetration level at which tribal lands are
eligible for a credit. At the current 70 percent benchmark, based on
the 2000 Census data, only a few dozen (out of nearly 450) federally
recognized tribal lands would qualify under our rules for a tribal
lands bidding credit. The Commission believes that raising the wireline
telephone penetration benchmark from 70 to 85 percent will both
increase the number of qualifying tribal lands eligible for this
bidding credit program (to roughly 150) and provide a greater incentive
for carriers to deploy facilities on tribal lands. The Commission also
believes that an 85 percent benchmark for tribal lands bidding credit
eligibility represents a balance between its efforts to expand the
scope of, and encourage participation in, the existing tribal lands
bidding credit program, with the Commission's objective to target those
tribal communities with the greatest need for access to
telecommunications services.
D. Extending the Tribal Lands Bidding Credit to Adjacent Non-Tribal
Areas With Low Penetration Rates
7. The Commission sought comment on a limited expansion of the
bidding credit program that would allow carriers who obtain tribal
lands bidding credits to obtain additional credit for extending their
coverage to immediately adjacent non-tribal areas that have comparably
low penetration rates, noting that certain areas abutting tribal lands
often share the same characteristics as tribal lands (e.g., significant
Native American population, income levels, terrain, etc.), but do not
otherwise qualify for the tribal lands bidding credit. In particular,
the Commission requested that commenters discuss how to define the
geographic areas eligible for an additional credit, the appropriate
certification process, and any other measures or conditions that should
be adopted to safeguard the integrity of the process. The Commission
also requested comment on its legal authority to extend the bidding
credit in such a way.
8. While noting that it continues to seek ways to extend
telecommunications service to all Americans, including providing
incentives to carriers that will serve areas that might otherwise be
neglected, the Commission decided not to extend the bidding credit
program to adjacent non-tribal areas at this time. The Commission noted
that, using Census tract data, the number of immediately adjacent non-
tribal areas that would qualify for such a bidding credit (i.e., a
tract wholly outside tribal lands with a telephone penetration rate
equal to or less than eighty-five percent) is negligible. In
particular, an estimated two percent of census tracts wholly outside
but immediately adjacent to tribal lands have a telephone penetration
rate equal to or less than 85 percent. Accordingly, it does not appear
that expanding the bidding credit program to adjacent non-tribal areas
with low penetration rates would have any marked impact on increased
subscribership or facilities deployment for those areas. The Commission
also noted that nothing in its rules prevents a licensee that has been
awarded a tribal lands bidding credit from providing service to
immediately adjacent, non-tribal areas.
III. Procedural Matters
A. Final Regulatory Flexibility Act Analysis
As required by the Regulatory Flexibility Act of 1980, as amended
(RFA), an Initial Regulatory Flexibility Analysis (IRFA) was
incorporated in the First Report and Order and Further Notice of
Proposed Rulemaking and the Second Report and Order and Second Further
Notice of Proposed Rulemaking. The Commission sought written public
comment on the proposals in the First Further Notice and Second Further
Notice, including comment on the IRFA. This present Final Regulatory
Flexibility Analysis (FRFA) conforms to the RFA.
A. Need for, and Objectives of, the Third Report and Order
In this Third Report and Order, the Commission modifies rules
previously adopted in the First Report and Order in this proceeding to
provide incentives for wireless telecommunications carriers to serve
individuals living on tribal lands. In that proceeding, the Commission
authorized the grant of bidding credits to winning bidders who deploy
facilities and provide service to federally-recognized tribal areas
that have a wireline telephone subscription rate equal to or below 70
percent. In the present item, the Commission amends Sec.
1.2110(f)(3)(i) of the Commission's rules to increase the wireline
telephone subscription rate for a qualifying tribal land to equal to or
less than 85 percent with the intention of increasing participation in
the bidding credit program; it also amends Sec. Sec. 1.2110(f)(3)(iii)
and (iv) to increase the bidding credit available to applicants that
deploy facilities on and provide wireless services to qualifying tribal
lands. The objective of these actions, and of this Third Report and
Order, is to address the need to provide incentives for carrier to
provide wireless telecommunications services on generally underserved
tribal lands. This Third Report and Order also addresses issues raised
in the Second Further Notice of Proposed Rulemaking. In the Second
Further Notice, the Commission requested comment on whether it should
expand the use of bidding credits. Specifically, it sought comment as
to whether to: (1) Modify the program's construction requirements; (2)
increase the bidding credit limit; (3) adjust the eligibility criteria
based on data from the 2000 Census; and (4) allow carriers who obtain
tribal lands bidding credits, to obtain additional credit for extending
their coverage to immediately adjacent non-tribal areas that also have
low penetration rates.
[[Page 61319]]
The Commission believes that increasing the wireline telephone
subscription rate at which tribal lands are eligible for a bidding
credit to 85 percent or less, will have the affect of increasing
participation in the program by increasing the number of qualifying
tribes and providing additional incentives to carriers to enter into
agreements with tribal governments to deploy wireless services within
Indian Country. The Commission also believes that increasing the amount
of bidding credit available will provide additional incentives to
prospective wireless providers in Indian Country. Regarding the other
issues raised, the Commission believes that the lack of a record
supporting the proposed changes in the rules, as well as the
availability of ad hoc or waiver process remedies, make it
inappropriate to adopt those proposals as rules at this time.
Specifically, the Commission does not believe that modifying the
construction requirements or extending the bidding credit to adjacent,
non-tribal lands will further the objectives of this Third Report and
Order.
B. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA
No comments were filed that specifically addressed the rules and
policies proposed in the IRFA.
C. Description and Estimate of the Number of Small Entities to Which
the 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.'' 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).
Cellular Licensees. The SBA has developed a small business size
standard for small businesses in the category ``Cellular and Other
Wireless Telecommunications.'' Under that SBA category, a business is
small if it has 1,500 or fewer employees. According to the Bureau of
the Census, only twelve firms from a total of 1238 cellular and other
wireless telecommunications firms operating during 1997 had 1,000 or
more employees. Therefore, even if all twelve of these firms were
cellular telephone companies, nearly all cellular carriers were small
businesses under the SBA's definition. In addition, the Commission
notes that there are 1807 cellular licenses; however, a cellular
licensee may own several licenses. According to the most recent Trends
in Telephone Service data, Industry Analysis Division, Wireline
Competition Bureau, Table 5.3--Number of Telecommunications Service
Providers that are Small Businesses (May 2002), 858 carriers reported
that they were engaged in the provision of either cellular service,
Personal Communications Service (PCS), or Specialized Mobile Radio
telephony services, which are placed together in that data. The
Commission estimates that 291 of these are small under the SBA small
business size standard. Accordingly, based on this data, the Commission
estimates that not more than 291 cellular service providers will be
affected by these revised 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
definition of small entities specifically applicable to such incumbent
220 MHz Phase I licensees. To estimate the number of such licensees
that are small businesses, the Commission applies the definition under
the SBA rules applicable to ``Cellular and Other Wireless
Telecommunication'' companies. This category provides that a small
business is a wireless company employing no more than 1,500 persons.
According to the Bureau of the Census, only twelve firms from a total
of 1238 cellular and other wireless telecommunications firms operating
during 1997 had 1,000 or more employees. If this general ratio
continues in 2002 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 standard.
220 MHz Radio Service `` Phase II Licensees. 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 defining ``small'' and ``very small'' businesses for
purposes of determining their eligibility for special provisions such
as bidding credits and installment payments. This small business
standard indicates that a ``small business'' is an entity that,
together with its affiliates and controlling principals, has average
gross revenues not exceeding $15 million for the preceding three years.
A ``very small business'' is defined as an entity that, together with
its affiliates and controlling principals, has average gross revenues
that do not exceed $3 million for the preceding three years. The SBA
has approved these small 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, 683 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.
700 MHz Guard Band Licenses. In the 700 MHz Guard Band Order, the
Commission adopted a small business size standard for ``small
businesses'' and ``very small businesses'' for purposes of determining
their eligibility for special provisions such as bidding credits and
installment payments. A small business is an entity that, together with
its affiliates and controlling principals, has average gross revenues
not exceeding $40 million for the preceding three years. Additionally,
a ``very small business'' is an entity that, together with its
affiliates and controlling principals, has average gross revenues that
are not more than $15 million for the preceding three years. An auction
of 52 Major Economic Area (MEA) licenses commenced on September 6,
2000, and closed on September 21, 2000. Of the 104 licenses auctioned,
96 licenses were sold to 9 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.
Lower 700 MHz Band Licenses. The Commission adopted criteria for
defining three groups of small businesses for purposes of determining
their eligibility for special provisions such as bidding credits. The
Commission has defined a small business as an entity that, together
with
[[Page 61320]]
its affiliates and controlling principals, has average gross revenues
not exceeding $40 million for the preceding three years. A very small
business is defined as an entity that, together with its affiliates and
controlling principals, has average gross revenues that are not more
than $15 million for the preceding three years. Additionally, the lower
700 MHz Service has a third category of small business status that may
be claimed for Metropolitan/Rural Service Area (MSA/RSA) licenses. The
third category is entrepreneur, which is defined as an entity that,
together with its affiliates and controlling principals, has average
gross revenues that are not more than $3 million for the preceding
three years. An auction of 704 licenses (one license in each of the 734
MSAs/RSAs and one license in each of the six Economic Area Groupings
[EAGs]) commenced on August 27, 2002, and closed on September 18, 2002.
Of the 740 licenses available for auction, 484 licenses were sold to
102 winning bidders. Seventy-two of the winning bidders claimed small
business, very small business or entrepreneur status and won a total of
329 licenses.
Private and Common Carrier Paging. In the Paging Second Report and
Order, the Commission adopted a small size standard for ``small
businesses'' for purposes of determining their eligibility for special
provisions such as bidding credits and installment payments. A small
business is an entity that, together with its affiliates and
controlling principals, has average gross revenues not exceeding $15
million for the preceding three years. The SBA has approved this
definition. An auction of Metropolitan Economic Area (MEA) licenses
commenced on February 24, 2000, and closed on March 2, 2000. Of the 985
licenses auctioned, 440 were sold. Fifty-seven companies claiming small
business status won. At present, there are approximately 24,000 Private
Paging site-specific licenses and 74,000 Common Carrier Paging
licenses. According to the most recent Trends in Telephone Service, 608
carriers reported that they were engaged in the provision of either
paging or ``other mobile'' services. Of these, the Commission estimates
that 589 are small, under the SBA-approved small business size
standard. The Commission estimates that the majority of private and
common carrier paging providers would qualify as small entities under
the SBA definition.
Broadband Personal Communications Service (PCS). The broadband PCS
spectrum is divided into six frequency blocks designated A through F,
and the Commission has held auctions for each block. The Commission has
created a small business size standard for Blocks C and F as an entity
that has average gross revenues of less than $40 million in the three
previous calendar years. For Block F, an additional small business size
standard for ``very small business'' was added and is defined as an
entity that, together with their affiliates, has average gross revenues
of not more than $15 million for the preceding three calendar years.
These small business size standards, in the context of broadband PCS
auctions, have been approved by the SBA. No small businesses within the
SBA-approved small business size standards bid successfully for
licenses in Blocks A and B. There were 90 winning bidders that
qualified as small entities in the Block C auctions. A total of 93
``small'' and ``very small'' business bidders won approximately 40% of
the 1,479 licenses for Blocks D, E, and F. On March 23, 1999, the
Commission reauctioned 347 C, D, E, and F Block licenses; there were 48
small business winning bidders. Based on this information, we conclude
that the number of small broadband PCS licensees will include the 90
winning C Block bidders and the 93 qualifying bidders in the D, E, and
F blocks plus the 48 winning bidders in the re-auction, for a total of
231 small entity PCS providers as defined by the SBA small business
standards and the Commission's auction rules. 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.
Narrowband PCS. The Commission has auctioned nationwide and
regional licenses for narrowband PCS. There are 11 nationwide and 30
regional licensees for narrowband PCS. The Commission does not have
sufficient information to determine whether any of these licensees are
small businesses within the SBA-approved definition for radiotelephone
companies. In March 2002, 106 MTA and BTA narrowband PCS licenses were
granted to 4 licensees. Each of the licensees are small or very small
businesses.
Specialized Mobile Radio (SMR). Pursuant to 47 CFR 90.814(b)(1),
the Commission has established a small business size standard for
purposes of auctioning 900 MHz SMR licenses, 800 MHz SMR licenses for
the upper 200 channels, and 800 MHz SMR licenses for the lower 230
channels on the 800 MHz band as a firm that has had average annual
gross revenues of $15 million or less in the three preceding calendar
years. The SBA has approved this small business size standard for the
800 MHz and 900 MHz auctions. Sixty winning bidders for geographic area
licenses in the 900 MHz SMR band qualified as small businesses under
the $15 million size standard. The auction of the 525 800 MHz SMR
geographic area licenses for the upper 200 channels began on October
28, 1997, and was completed on December 8, 1997. Ten (10) winning
bidders for geographic area licenses for the upper 200 channels in the
800 MHz SMR band qualified as small businesses under the $15 million
size standard.
The auction of the 1,050 800 MHz SMR geographic area licenses for
the General Category channels began on August 16, 2000, and was
completed on September 1, 2000. Eleven (11) winning bidders for
geographic area licenses for the General Category channels in the 800
MHz SMR band qualified as small businesses under the $15 million size
standard. In an auction completed on December 5, 2000, a total of 2,800
Economic Area licenses in the lower 80 channels of the 800 MHz SMR
service were sold. Of the 22 winning bidders, 19 claimed ``small
business'' status. Thus, 40 winning bidders for geographic licenses in
the 800 MHz SMR band qualified as small business. In addition, there
are numerous incumbent site-by-site SMR licensees on the 800 and 900
MHz band. The Commission awards bidding credits in auctions for
geographic area 800 MHz and 900 MHz SMR licenses to firms that had
revenues of no more than $15 million in each of the three previous
calendar years. This analysis applies to SMR providers in the 800 MHz
and 900 MHz bands that either hold geographic area licenses or have
obtained extended implementation authorizations. The Commission does
not know how many firms provide 800 MHz or 900 MHz geographic area SMR
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, for
purposes of this analysis, that all of the remaining existing extended
implementation authorizations are held by small entities, as that small
business size standard is established by SBA.
D. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements
This Third Report and Order modifies a basic qualification for
participation in the tribal lands bidding credit program. The
Commission increases the wireline telephone subscription rate for an
area to qualify for the tribal lands bidding credit from 70 percent or
less to 85
[[Page 61321]]
percent or less. The Commission also increases the amount of bidding
credit available that may be awarded to auction high bidders for
deploying facilities on and providing service to qualifying tribal
lands. The Commission does not propose any additional reporting,
recordkeeping or compliance requirements.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
The RFA requires an agency to describe any significant,
specifically small business, alternatives that it has considered in
developing its approach, which may include the following four
alternatives (among others): (1) The establishment of differing
compliance or reporting requirements or timetables that take into
account the resources available to small entities; (2) the
clarification, consolidation, or simplification of compliance or
reporting requirements under the rule for small entities; (3) the use
of performance, rather than design, standards; and (4) an exemption
from coverage of the rule, or any part thereof, for small Entities.
In the Third Report and Order, the Commission first declined to
modify the current construction requirements for a licensee that has
been awarded a bidding credit for serving qualifying tribal lands,
believing that the Commission's underlying objective (rapid deployment
to underserved Indian Country) is best served by the current rules;
this action will have no significant impact on small entities. Next,
the Commission increased the amount of bidding credit to 500,000
dollars for the first 200 square miles of qualifying tribal lands, and
2,500 dollars for each additional square mile above the first 200
square miles; this action will have no significant negative impact on
small entities. While the Commission considered leaving the existing
bidding credit amount in place, it determined that increasing the
bidding credit amount would provide a greater incentive for carriers
and may benefit small entities that are capable of providing wireless
services to Indian Country. The Commission also set the wireline
telephone subscription rate for a qualifying tribal land at 85 percent
or less, in order to increase the number of tribes whose lands qualify
for the bidding credit; this action will have no significant impact on
small entities. While the Commission considered implementing a
benchmark above 85 percent or leaving the benchmark at 75 percent, it
concluded that an 85 percent benchmark represents a balance between its
efforts to expand the scope of, and encourage participation in, the
existing tribal lands bidding credit program, with the Commission's
objective to target tribal communities with the greatest need for
access to telecommunications services. Finally, the Commission declined
to extend the tribal lands bidding credit to carriers serving adjacent,
non-tribal lands, as it believed such action does not further the
objective of this program; this action will not have a significant
economic impact on small entities.
B. Paperwork Reduction Act Analysis
9. This document does not contain new or modified information
collection requirements 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.
IV. Ordering Clauses
10. Pursuant to the authority of sections 1, 4(i), 303(r), and
309(j) of the Communications Act of 1934, as amended, 47 U.S.C. 151,
154(i), 303(r), and 309(j), this Third Report and Order is adopted.
11. Pursuant to the authority of sections 4(i), 7, 303(c), 303(f),
303(g), 303(r), and 332 of the Communications Act of 1934, as amended,
47 U.S.C. 154(i), 157, 303(c), 303(f), 303(g), 303(r), and 332, the
rule changes specified in Appendix A are adopted.
12. The Commission's Consumer Information Bureau, Reference
Information Center, shall send a copy of the Third Report and Order,
including the Final Regulatory Flexibility Analysis, to the Chief
Counsel for Advocacy of the Small Business Administration.
List of Subjects in 47 CFR Part 1
Communications common carriers, telecommunications.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Rule Changes
0
For the reasons discussed in the preamble, the Federal Communications
Commission amends 47 CFR subpart Q of part 1 as follows:
PART 1--PRACTICE AND PROCEDURE
0
1. The authority citation for part 1 continues to read as follows:
Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, 303(r), 309
and 325(e).
0
2. Amend Sec. 1.2110 by revising paragraphs (f)(3)(i), (f)(3)(iii),
and (f)(3)(iv) to read as follows:
Sec. 1.2110 Designated entities.
* * * * *
(f) * * *
(3) * * *
(i) Qualifying tribal land means any federally recognized Indian
tribe's reservation, Pueblo, or Colony, including former reservations
in Oklahoma, Alaska Native regions established pursuant to the Alaska
Native Claims Settlement Act (85 Stat. 688), and Indian allotments,
that has a wireline telephone subscription rate equal to or less than
eighty-five (85) percent based on the most recently available U.S.
Census Data.
* * * * *
(iii) Bidding credit formula. Subject to the applicable bidding
credit limit set forth in Sec. 1.2110(f)(3)(iv), the bidding credit
shall equal five hundred thousand (500,000) dollars for the first two
hundred (200) square miles (518 square kilometers) of qualifying tribal
land, and twenty-five hundred (2500) dollars for each additional square
mile (2.590 square kilometers) of qualifying tribal land above two
hundred (200) square miles (518 square kilometers).
(iv) Bidding credit limit. If the high bid is equal to or less than
one million (1,000,000) dollars, the maximum bidding credit calculated
pursuant to Sec. 1.2110(f)(3)(iii) shall not exceed fifty (50) percent
of the high bid. If the high bid is greater than one million
(1,000,000) dollars, but equal to or less than two million (2,000,000)
dollars, the maximum bidding credit calculated pursuant to Sec.
1.2110(f)(3)(iii) shall not exceed five hundred thousand (500,000)
dollars. If the high bid is greater than two million (2,000,000)
dollars, the maximum bidding credit calculated pursuant to Sec.
1.2110(f)(3)(iii) shall not exceed thirty-five (35) percent of the high
bid.
* * * * *
[FR Doc. 04-23187 Filed 10-15-04; 8:45 am]
BILLING CODE 6712-01-P