[Federal Register: March 29, 2004 (Volume 69, Number 60)]
[Proposed Rules]
[Page 16193-16202]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29mr04-19]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Chapter I
[WC Docket No. 04-36; FCC 04-28]
Review of Regulatory Requirements for IP-Enabled Services
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document seeks comment on issues relating to services and
applications utilizing Internet Protocol (IP), collectively referred to
here as ``IP-enabled services.'' These services include, but are not
limited to, voice over IP (VoIP) services, other communications
capabilities utilizing the Internet Protocol, software-based
applications that facilitate use of those services, and future services
using IP expected to emerge in the market. As customers begin to
substitute IP-enabled services for traditional communications, the
Commission seeks comment as to the rate and extent of that
substitution. Further, comments are requested on IP-enabled services
presently available, expected future development of such services, how
to distinguish among such services, and what regulatory requirements,
if any, should apply to IP-enabled services.
This NPRM seeks comment on ways in which the Commission might
categorize IP-enabled services to ensure that any regulations applied
are limited to those services and/or applications for which they are
most appropriate. In particular, comments are requested on whether the
services comprising each category constitute ``telecommunications
services'' or ``information services'' under the definitions set forth
in the Act. Noting the importance of these legal classifications, as
well as the Commission's statutory forbearance authority and Title 1
ancillary jurisdiction, this NPRM describes several central regulatory
requirements and asks which, if any, should apply to each category of
IP-enabled service. These regulatory requirements include, among
others, those addressing disability accessibility, the 911 and E911
systems, access charges, universal service, consumer protection, and
traditional common carrier obligations.
DATES: Comments are due on or before May 28, 2004, and Reply Comments
are due on or before June 28, 2004.
ADDRESSES: Federal Communications Commission, 445 12th Street, SW,
Washington, DC 20554. See SUPPLEMENTARY INFORMATION for further filing
instructions.
FOR FURTHER INFORMATION CONTACT: Russell Hanser, Senior Attorney,
Competition Policy Division, Wireline Competition Bureau, at (202) 418-
0832, or at Russell.Hanser@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Proposed Rulemaking (NPRM) in WC Docket No. 04-36, FCC 04-28,
adopted February 12, 2004, and released March 10, 2004. The complete
text of this NPRM 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. This document may
also be purchased from the Commission's duplicating contractor, Qualex
International, Portals II, 445 12th Street, SW., Room CY-B402,
Washington, DC 20554, telephone 202-863-2893, facsimile 202-863-2898,
or via e-mail at qualexint@aol.com. It is also available on the
Commission's Web site at http://www.fcc.gov.
Comments may be filed using the Commission's Electronic Comment
Filing System (ECFS) or by filing paper copies. All filings should
refer to WC Docket No. 04-36. Comments filed through ECFS can be sent
as an electronic file via the Internet at http://www.fcc.gov/e-file/ecfs.html.
Only one copy of an electronic submission must be filed. In
completing the transmittal screen, commenters should include their full
name, postal service mailing address, and the applicable docket number,
which in this instance is WC Docket No. 04-36. Parties may also submit
an electronic comment by Internet e-mail. To get filing instructions
for e-mail comments, commenters should send an e-mail to
ecfshelp@fcc.gov, and should include the following words in the
regarding line of the message: ``get form.'' A sample form and directions will be sent in
reply.
Parties who choose to file by paper must file an original and four
copies of each filing. Parties filing by paper must also send five (5)
courtesy copies to the attention of Janice M. Myles, Wireline
Competition Bureau, Competition Policy Division, 445 12th Street, SW.,
Suite 5-C327, Washington, DC 20554, or via e-mail janice.myles@fcc.gov.
Paper filings and courtesy copies must be delivered in the following
manner. 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
[[Page 16194]]
delays in receiving U.S. Postal Service mail).
The Commission's contractor, Natek, Inc., 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. This
facility is the only location where hand-delivered or messenger-
delivered paper filings or courtesy copies for the Commission's
Secretary and Commission staff will be accepted. 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 mail, Express Mail, and Priority Mail
should be addressed to 445 12th Street, SW., Washington, DC 20554. All
filings must be addressed to the Commission's Secretary, Office of the
Secretary, Federal Communications Commission.
Each comment and reply comment must include a short and concise
summary of the substantive arguments raised in the pleading. Comments
and reply comments must also comply with section 1.48 and all other
applicable sections of the Commission's rules. We direct all interested
parties to include the name of the filing party and the date of the
filing on each page of their comments and reply comments. All parties
are encouraged to utilize a table of contents, regardless of the length
of their submission.
Synopsis of the Notice of Proposed Rulemaking
1. Background. IP is a protocol used to transmit data in a
packetized format. Widespread common usage of IP-based applications has
facilitated the proliferation of a great variety of services, including
the world wide web, e-mail, file transfer, instant messaging, and
virtual private networks, each of which can integrate audio, video and
data functionality to provide capabilities beyond those traditionally
available via the public circuit-switched network. Moreover, IP-enabled
services provide consumers with opportunities for customization beyond
those offered by circuit-switched voice services, including virtual
telephone numbers, unified messaging, and call management. Finally,
these services generally may transit wireline, wireless, cable, or
other broadband facilities, promoting inter-platform competition.
2. Several carriers transport voice calls over their backbone IP
networks, and recently consumers--in both the residential and
enterprise markets--have more widely begun to substitute IP-enabled
services and applications for traditional circuit-switched network
voice calls. Cable providers and traditional wireline carriers have
deployed or announced plans to deploy IP-enabled voice services to
consumers. Consumers have also begun to use peer-to-peer IP-enabled
voice applications to facilitate direct communication over their
existing broadband facilities.
3. The prospect that IP-enabled services might come to be used as
substitutes for the public circuit-switched network requires that the
Commission examine the extent, if any, to which regulations currently
applied to circuit-switched telephony should also be applied to any
class of IP-enabled service. However, the Commission's examination must
also recognize that these IP-enabled services differ in critical ways
from traditional telephony, and that these differences may have
important consequences for the Commission's decisions.
4. Categorizing IP Enabled Services. The Commission seeks comment
on how, if at all, it should distinguish among IP-enabled services, and
requests comment on several potential grounds for categorization,
including (among others) the degree to which a service is functionally
equivalent to traditional telephony; the degree to which a service is
viewed as a substitute for traditional telephony; and whether a service
interconnects with the PSTN and/or uses traditional telephone numbers.
The Commission also asks commenters to propose any appropriate ground
for categorization not specified in the NPRM.
5. Jurisdictional Considerations. The NPRM seeks comment on the
jurisdictional nature of IP-enabled services. The Commission recently
concluded that Pulver.com's Free World Dialup (FWD) service is an
unregulated information service subject to Federal jurisdiction, and
that it would in any event be inappropriate to apply the Commission's
traditional end-to-end jurisdictional analysis to FWD. The Commission
seeks comment on whether these conclusions also apply to other classes
of IP-enabled services. Additionally, comment is sought on other
grounds for Federal jurisdiction over IP-enabled services. Finally, the
NPRM seeks comment on whether there is any ground for asserting
exclusive Federal jurisdiction over all or some IP-enabled services,
including but not limited to the Supremacy Clause or Commerce Clause of
the U.S. Constitution, section 253 of the Communications Act, or
section 332 of the Communications Act.
6. Appropriate Legal and Regulatory Framework. The NPRM seeks
comment on which IP-enabled services (if any) should be classified as
telecommunications services, which (if any) should be classified as
information services, and the effect, if any, of recent judicial
decisions on the Commission's discretion to make such classifications.
Comments are also requested regarding how the Commission should achieve
important Federal policy goals, including whether it should use its
ancillary jurisdiction for those IP-enabled services classified as
information services or its forbearance authority for those services
classified as telecommunications services. The Commission encourages
specific, pragmatic proposals that will account for the technical,
economic and other features that differentiate IP-enabled services from
other services. Finally, the Commission seeks comment on the relevance
of certain existing rules in the context of IP-enabled services and on
what constraints there may be on the Commission's authority to revisit
its existing interpretation of the statutory terms ``telecommunications
service'' and ``information service.''
7. Specific Regulatory Requirements: 911/E911. The Commission seeks
comment on the current capabilities of VoIP services to deliver
traditional callback and location information. Additionally, comments
are requested on means by which IP-enabled services can be used to
improve current 911 and E911 services. Finally, the Commission seeks
comment on whether any existing IP-enabled services satisfy the
criteria established by the Commission to determine whether a service
should be subject to some form of 911/E911 regulation and whether those
criteria form the appropriate bases for determining whether IP-enabled
services should be subject to those requirements.
8. Specific Regulatory Requirements: Disability Access. The NPRM
invites comment regarding how the Act's requirements concerning the
accessibility of communications equipment and services to the disabled
should be applied in the context of IP-enabled services. Commenters are
invited to refresh the record compiled in the context of a previous
Notice of Inquiry concerning the applicability of section 255 to IP
telephony. Finally, the NPRM seeks comment regarding how migration to
IP-enabled services will affect the Commission's statutory
[[Page 16195]]
obligation to ensure that interstate and intrastate telecommunications
relay services are available to hearing-impaired and speech-impaired
individuals.
9. Specific Regulatory Requirements: Carrier Compensation. Comments
are invited on the extent to which access charges should apply to VoIP
or other IP-enabled services.
10. Specific Regulatory Requirements: Universal Service. The NPRM
seeks comment on how the regulatory classification of IP-enabled
services, including VoIP, would affect the Commission's ability to fund
universal service. Several related issues have been raised previously
in other Commission proceedings, and parties are encouraged to
incorporate into this docket any relevant prior filings. In this
proceeding, commenters are invited to address obligations and
entitlements of both facilities-based and non-facilities-based
providers of IP-enabled services.
11. Specific Regulatory Requirements: Title III. To the extent that
providers of IP-enabled services use wireless technology to deliver
such services, they may fall within the ambit of Title III of the Act,
which provides the structure for the Commission's regulation of
spectrum-based services, including broadcasting and all other services
that use radio waves. Section 332 of the Act provides a specific
framework for Commercial Mobile Radio Service (CMRS) providers. Given
the Commission's previous history of forbearance from application of
economic regulation to CMRS providers, the NPRM seeks comment on the
impact of Section 332 on IP-enabled services offered by CMRS providers,
and what other effect Title III may have on the provision or regulation
of IP-enabled services provided in whole or in part over a wireless
platform. In addition, comments are requested as to whether the
Commission should distinguish among wireless providers of IP-enabled
services based on the nature of their spectrum use (e.g. fixed mobile,
licensed/unlicensed).
12. Specific Regulatory Requirements: Title VI. Often, IP-enabled
services are provided over cable facilities. The Commission seeks
comment on what impact, if any, the provision of broadband over cable
plant should have on its treatment of IP-enabled services, as well as
any effect that Title VI of the Act might have on any potential
regulation of cable-based IP-enabled services. If the Commission
classifies IP-enabled services as telecommunications services, should
it forbear from applying certain Title II provisions to cable providers
offering IP-enabled services, and what would be the basis for such
forbearance? The NPRM also asks whether any class of IP-enabled service
should be construed to be a ``cable service'' under the Act.
13. Specific Regulatory Requirements: Other Requirements. The
Commission also seeks comment on a number of other provisions in the
Act, including consumer protection requirements and economic
regulations set forth in Title II of the Act and in previous Commission
orders.
14. Other Considerations. The NPRM invites comment on the
implications of decisions in this docket for rural carriers, which
generally face high operating expenses and equipment costs and rely on
intrastate access charges for revenues. Comments are also requested on
potential implications for international issues including settlement
rates, the ability of consumers to use their IP CPE overseas to send
and receive calls, and foreign policy or trade concerns. Additionally,
comments are invited regarding the effect of IP-enabled services on
numbering resources. The NPRM also requests comment regarding other
policy objectives, including the interest in maintaining an open
network architecture. Finally, the NPRM seeks comment regarding the
availability of enforcement mechanisms to address disputes between IP-
enabled service providers and their customers and between or among two
or more providers.
Initial Regulatory Flexibility Analysis
As required by the Regulatory Flexibility Act of 1980, as amended
(RFA), the Commission has prepared the present Initial Regulatory
Flexibility Analysis (IRFA) of the possible significant economic impact
on small entities that might result from this NPRM. See 5 U.S.C. 603,
as amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (SBREFA), Public Law 104-121, 110 Stat. 857 (1996). Written public
comments are requested on this IRFA. Comments must be identified as
responses to the IRFA and must be filed by the deadlines for comments
on the NPRM provided above. The Commission will send a copy of the
NPRM, including this IRFA, to the Chief Counsel for Advocacy of the
Small Business Administration. See 5 U.S.C. 603(a).
1. Need for, and Objectives of, the Proposed Rules
This NPRM examines issues relating to services and applications
making use of Internet Protocol (IP), including but not limited to
voice over IP (VoIP) services (collectively, ``IP-enabled services'').
IP-enabled ``services'' could include the digital communications
capabilities of increasingly higher speeds, which use a number of
transmission network technologies, and which generally have in common
the use of the Internet Protocol. Some of these may be highly managed
to support specific communications functions. IP-enabled
``applications'' could include capabilities based in higher-level
software that can be invoked by the customer or on the customer's
behalf to provide functions that make use of communications services.
The NPRM states that the Commission must examine what its role should
be in this new environment of increased consumer choice and power, and
asks whether it can best meet its role of safeguarding the public
interest by continuing its established policy of minimal regulation of
the Internet and the services provided over it.
To assist the Commission in its analysis of how properly to treat
IP-enabled services, the NPRM seeks comment on ways in which the
Commission might distinguish among such services, and on what
regulatory treatment, if any, would be appropriate for different
classes of service. The NPRM then requests comment on whether the
services comprising each category constitute ``telecommunications
services'' or ``information services'' under the definitions set forth
in the Act. Finally, recognizing the central importance of these legal
classifications but also highlighting the Commission's statutory
forbearance authority and Title I ancillary jurisdiction, the NPRM
describes a number of central regulatory requirements (including, for
example, those relating to access charges, universal service, the 911
and E911 systems, and disability accessibility), and asks which, if
any, should apply to each category of IP-enabled services.
2. Legal Basis
The legal basis for any action that may be taken pursuant to this
NPRM is contained in sections 1, 4(i), and 4(j) of the Communications
Act of 1934, as amended, 47 U.S.C. 151, 154(i) and 154(j), and sections
1.1, 1.48, 1.411, 1.412, 1.415, 1.419, and 1.1200-1.1216, of the
Commission's rules, 47 CFR 1.1, 1.48, 1.411, 1.412, 1.415, 1.419, and
1.1200-1.1216.
[[Page 16196]]
3. Description and Estimate of the Number of Small Entities to Which
the Proposed Rules May Apply
The RFA directs agencies to provide a description of and, where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules. 5 U.S.C. 603(b)(3), 604(a)(3).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. 5 U.S.C. 601(3) 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). 15 U.S.C. 632.
This present NPRM might, in theory, reach a variety of industries; out
of an abundance of caution, we have attempted to cast a wide net in
describing categories of potentially affected small entities. We would
appreciate any comment on the extent to which the various entities
might be affected by our action.
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 as ``governments of cities, towns, townships,
villages, school districts, or special districts, with a population of
less than fifty thousand.'' As of 1997, there were approximately 87,453
governmental jurisdictions in the United States. This number includes
39,044 county governments, municipalities, and townships, of which
37,546 (approximately 96.2%) have populations of fewer than 50,000, and
of which 1,498 have populations of 50,000 or more. Thus, we estimate
the number of small governmental jurisdictions overall to be 84,098 or
fewer.
a. Telecommunications Service Entities
(i) Wireline Carriers and Service Providers. The SBA's Office of
Advocacy contends that, for RFA purposes, small incumbent local
exchange carriers are not dominant in their field of operation because
any such dominance is not ``national'' in scope. We have nevertheless
included small incumbent local exchange carriers in this RFA analysis,
although we emphasize that this RFA action has no effect on Commission
analyses and determinations in other, non-RFA contexts.
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 the SBA's Wired Telecommunications Carriers standard for small
businesses (1,500 or fewer employees), 1,032 incumbent LECs would be
deemed small.
Competitive Local Exchange Carriers (CLECs), 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. Under the SBA's Wired Telecommunications Carriers standard
for small businesses (1,500 or fewer employees), 458 CLECs or CAPs
would be deemed small businesses. 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.
Local Resellers. Under the SBA's Wired Telecommunications Carriers
standard for small businesses (1,500 or fewer employees), an estimated
127 local resellers would be deemed small businesses.
Toll Resellers. Under the SBA's Wired Telecommunications Carriers
standard for small businesses (1,500 or fewer employees), an estimated
590 toll resellers would be deemed small businesses.
Payphone Service Providers (PSPs). Under the SBA's Wired
Telecommunications Carriers standard for small businesses (1,500 or
fewer employees), an estimated 757 PSPs would be deemed to be small
businesses.
Interexchange Carriers (IXCs). Under the SBA's Wired
Telecommunications Carriers standard for small businesses (1,500 or
fewer employees), an estimated 223 interexchange carriers would be
deemed to be small businesses.
Operator Service Providers (OSPs). Under the SBA's Wired
Telecommunications Carriers standard for small businesses (1,500 or
fewer employees), an estimated 22 OSP would be deemed small businesses.
Prepaid Calling Card Providers. Under the SBA's Wired
Telecommunications Carriers standard for small businesses (1,500 or
fewer employees), an estimated 36 prepaid calling card providers would
be deemed small businesses.
800 and 800-Like Service Subscribers. Under the SBA's Wired
Telecommunications Carriers standard for small businesses (1,500 or
fewer employees), we estimate that there are 7,692,955 or fewer small
entity 800 subscribers; 7,706,393 or fewer small entity 888
subscribers; and 1,946,538 or fewer small entity 877 subscribers.
(ii) International Service Providers. The appropriate size
standards under SBA rules are for the two broad 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. For the first category of Satellite
Telecommunications, Census Bureau data for 1997 show that there were a
total of 324 firms that operated for the entire year. Census data for
1997 shows that 273 Satellite Telecommunications firms had annual
receipts of under $10 million. The second category--Other
Telecommunications--includes ``establishments primarily engaged in * *
* 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.'' According to Census Bureau
data for 1997, 424 firms had annual receipts of $5 million to
$9,999,999.
(iii) Wireless Telecommunications Service Providers. 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. Census Bureau data for 1997 show that 1,303 paging
firms had employment of 999 or fewer employees, and an additional 17
paging firms had employment of 1,000 employees or more. For the census
category Cellular and Other Wireless Telecommunications, Census Bureau
data for 1997 show that 965 firms had employment of 999 or fewer
employees, and an additional 12 firms had employment of 1,000 employees
or more.
Cellular Licensees. According to the most recent Commission data,
719 carriers reported that they were engaged in the provision of
cellular service, Personal Communications Service (PCS), or Specialized
Mobile Radio
[[Page 16197]]
(SMR) Telephony services, which are placed together in the data. Under
the SBA standard that businesses with 1500 or fewer employees are
deemed small, we have estimated that 294 of these are small, under the
SBA's small business size standard.
Common Carrier Paging. For the census category of Paging, Census
Bureau data for 1997 show that 1,303 firms had employment of 999 or
fewer employees, and an additional 17 firms had employment of 1,000
employees or more. Under the SBA's small business size standard, we
estimate that the majority of these businesses are small.
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'' is
an entity with average gross revenues of $40 million for each of the
three preceding years, and a ``very small business'' is an entity with
average gross revenues of $15 million 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. Under the SBA's small business size standard, we
estimate that 294 wireless telephony carriers are small.
Broadband Personal Communications Service. The broadband Personal
Communications Service (PCS) spectrum is divided into six frequency
blocks designated A through F, and the Commission has held auctions for
each block. The Commission defined ``small entity'' for Blocks C and F
as an entity that has average gross revenues of $40 million or less in
the three previous calendar years. For Block F, an additional
classification for ``very small business'' was added and is defined as
an entity that, together with its affiliates, has average gross
revenues of not more than $15 million for the preceding three calendar
years.'' These standards defining ``small entity'' in the context of
broadband PCS auctions have been approved by the SBA. No small
businesses, within the SBA-approved small business size standards, bid
successfully for licenses in Blocks A and B. There were 90 winning
bidders that qualified as small entities in the Block C auctions. A
total of 93 small and very small business bidders won approximately 40
percent of the 1,479 licenses for Blocks D, E, and F. On March 23,
1999, the Commission re-auctioned 347 C, D, E, and F Block licenses.
There were 48 small business winning bidders. On January 26, 2001, the
Commission completed the auction of 422 C and F Broadband PCS licenses
in Auction No. 35, and 29 successful bidders qualified as ``small'' or
``very small'' businesses.
Narrowband Personal Communications Services. For purposes of two
past auctions of narrowband personal communications services (PCS)
licenses, ``small businesses'' were defined as entities with average
gross revenues for the prior three calendar years of $40 million or
less. Through these auctions, the Commission has awarded a total of 41
licenses, out of which 11 were obtained by small businesses. To ensure
meaningful participation of small business entities in future auctions,
the Commission has adopted a two-tiered small business size standard in
the Narrowband PCS Second Report and Order. A ``small business'' is an
entity that, together with affiliates and controlling interests, has
average gross revenues for the three preceding years of not more than
$40 million. A ``very small business'' is an entity that, together with
affiliates and controlling interests, has average gross revenues for
the three preceding years of not more than $15 million. The SBA has
approved these small business size standards.
220 MHz Radio Service--Phase I Licensees. According to the Census
Bureau data for 1997, only 12 wireless firms out of a total of 1,238
such firms that operated for the entire year, had 1,000 or more
employees. Consequently, under the SBA's small business standard, we
estimate that a very small minority of such firms are small.
220 MHz Radio Service--Phase II Licensees. Phase II 220 MHz service
is a new service, and is subject to spectrum auctions. For purposes of
the auctions, we adopted a small business size standard for ``small''
and ``very small'' businesses for purposes of determining their
eligibility for special provisions such as bidding credits and
installment payments. This small business size 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
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
business size standards. After two auctions of these Phase II licenses,
fourteen winning companies that claimed 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 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. Consequently, the Commission
estimates that there are 301 or fewer small entity SMR licensees in the
800 MHz and 900 MHz bands.
700 MHz Guard Band Licensees. In the 700 MHz Guard Band Order, we
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'' as an entity that, together with its
affiliates and controlling principals, has average gross revenues not
exceeding $15 million for the preceding three years. Additionally, a
``very small business'' is an entity that, together with its affiliates
and controlling principals, has average gross revenues that are not
more than $3 million for the preceding three years. An auction of 52
Major Economic Area (MEA) licenses commenced on September 6, 2000, and
closed on September 21, 2000. Five of the winning 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. One winning bidder was a small business and won a
total of two licenses.
Rural Radiotelephone Service. Under the SBA's small business
standard, the Commission estimates that there are 1,000 or fewer small
entity licensees in the Rural Radiotelephone Service.
[[Page 16198]]
Air-Ground Radiotelephone Service. There are approximately 100
licensees in the Air-Ground Radiotelephone Service, and under the SBA's
small business standard, we estimate that almost all of them qualify as
small.
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. Under the SBA's small business standard, we estimate that
there are up to approximately 712,000 licensees that are held by small
businesses or individuals. 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 a ``small'' business as an entity that,
together with controlling interests and affiliates, has average gross
revenues for the preceding three years not to exceed $15 million
dollars. In addition, a ``very small'' business is one that, together
with controlling interests and affiliates, has average gross revenues
for the preceding three years not to exceed $3 million dollars. 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.
Fixed Microwave Services. Fixed microwave services include common
carrier, private operational-fixed, and broadcast auxiliary radio
services. At present, there are approximately 22,015 common carrier
fixed licensees and 61,670 private operational-fixed licensees and
broadcast auxiliary radio licensees in the microwave services. The
Commission does not have data specifying the number of these licensees
that have more than 1,500 employees, and thus is unable at this time to
estimate with greater precision the number of fixed microwave service
licensees that would qualify as small business concerns under the SBA's
small business size standard.
Offshore Radiotelephone Service. This service operates on several
UHF television broadcast channels that are not used for television
broadcasting in the coastal areas of states bordering the Gulf of
Mexico. There are presently approximately 55 licensees in this service.
We are unable to estimate at this time the number of licensees that
would qualify as small under the SBA's small business size standard.
39 GHz Service. The Commission created a special small business
size standard for 39 GHz licenses--an entity that has average gross
revenues of $40 million or less in the three previous calendar years.
An additional size standard for ``very small business'' is: an entity
that, together with affiliates, has average gross revenues of not more
than $15 million for the preceding three 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.
Multipoint Distribution Service, Multichannel Multipoint
Distribution Service, and ITFS. Multichannel Multipoint Distribution
Service (MMDS) systems, often referred to as ``wireless cable,''
transmit video programming to subscribers using the microwave
frequencies of the Multipoint Distribution Service (MDS) and
Instructional Television Fixed Service (ITFS). In connection with the
1996 MDS auction, the Commission established a small business size
standard as an entity that had annual average gross revenues of less
than $40 million in the previous three calendar years. The MDS auctions
resulted in 67 successful bidders obtaining licensing opportunities for
493 Basic Trading Areas (BTAs). Of the 67 auction winners, 61 met the
definition of a small business. MDS also includes licensees of stations
authorized prior to the auction. In addition, the SBA has developed a
small business size standard for Cable and Other Program Distribution,
which includes all such companies generating $12.5 million or less in
annual receipts. According to Census Bureau data for 1997, there were a
total of 1,311 firms in this category that had operated for the entire
year. Of this total, 1,180 firms had annual receipts of under $10
million and an additional 52 firms had receipts of $10 million or more
but less than $25 million. This SBA small business size standard also
appears applicable to ITFS. There are presently 2,032 ITFS licensees.
All but 100 of these licenses are held by educational institutions.
Educational institutions are included in this analysis as small
entities. Thus, we tentatively conclude that at least 1,932 licensees
are small businesses.
Local Multipoint Distribution Service. Local Multipoint
Distribution Service (LMDS) is a fixed broadband point-to-multipoint
microwave service that provides for two-way video telecommunications.
The auction of the 1,030 Local Multipoint Distribution Service (LMDS)
licenses began on February 18, 1998 and closed on March 25, 1998. The
Commission established a small business size standard for LMDS licenses
as an entity that has average gross revenues of less than $40 million
in the three previous calendar years. An additional small business size
standard for ``very small business'' was added as an entity that,
together with its affiliates, has average gross revenues of not more
than $15 million for the preceding three calendar years. The SBA has
approved these small business size standards in the context of LMDS
auctions. There were 93 winning bidders that qualified as small
entities in the LMDS auctions. A total of 93 small and very small
business bidders won approximately 277 A Block licenses and 387 B Block
licenses. On March 27, 1999, the Commission re-auctioned 161 licenses;
there were 40 winning bidders. Based on this information, we conclude
that the number of small LMDS licenses 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.
24 GHz--Incumbent Licensees. According to Census Bureau data for
1997, there were 977 licensees that operated for the entire year. Of
this total, 965 firms employed 999 or fewer employees, and an
additional 12 firms employed 1,000 employees or more. Thus, under the
SBA's standard for small businesses, the great majority of firms can be
considered small.
24 GHz--Future Licensees. With respect to new applicants in the 24
GHz band, the small business size standard for ``small business'' is an
entity that, together with controlling interests and affiliates, has
average annual gross revenues for the three preceding years not in
excess of $15 million. ``Very small business'' in the 24 GHz band is an
entity that, together with controlling interests and affiliates, has
average gross revenues not exceeding $3 million for the preceding three
years. The SBA has approved these small business size
[[Page 16199]]
standards. These size standards will apply to any future auctions, if
held.
b. Cable and OVS Operators
Cable and Other Program Distribution. This category includes cable
systems operators, closed circuit television services, direct broadcast
satellite services, multipoint distribution systems, satellite master
antenna systems, and subscription television services. The SBA has
developed small business size standard for this census category, which
includes all such companies generating $12.5 million or less in revenue
annually. According to Census Bureau data for 1997, there were a total
of 1,311 firms in this category that had operated for the entire year.
Of this total, 1,180 firms had annual receipts of under $10 million and
an additional 52 firms had receipts of $10 million or more but less
than $25 million.
Cable System Operators (Rate Regulation Standard). Under the
Commission's rules, a ``small cable company'' is one serving fewer than
400,000 subscribers nationwide. The most recent estimates indicate that
there were 1,439 cable operators who qualified as small cable system
operators at the end of 1995.
Cable System Operators (Telecom Act Standard). The Communications
Act of 1934, as amended, also contains a size standard for small cable
system operators, which is ``a cable operator that, directly or through
an affiliate, serves in the aggregate fewer than 1 percent of all
subscribers in the United States and is not affiliated with any entity
or entities whose gross annual revenues in the aggregate exceed
$250,000,000.'' The Commission neither requests nor collects
information on whether cable system operators are affiliated with
entities whose gross annual revenues exceed $250 million, and therefore
is unable, at this time, to estimate more accurately the number of
cable system operators that would qualify as small cable operators
under the size standard contained in the Communications Act of 1934.
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 $12.5 million or less in
annual receipts. The Commission estimates that up to 24 OVS operators
might qualify as small businesses that may be affected by the rules and
policies adopted herein.
c. 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
$21 million or less. According to Census Bureau data for 1997, there
were 2,751 firms in this category that operated for the entire year. Of
these, 2,659 firms had annual receipts of under $10 million, and an
additional 67 firms had receipts of between $10 million and $24,
999,999. Consequently, we estimate that the majority of these firms are
small entities that may be affected by our action.
d. Other Internet-Related Entities
Web Search Portals. We note that, in this NPRM, we have described
activities such as email, 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 has 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 has developed a small business size standard for this category;
that size standard is $6 million or less in average annual receipts.
According to Census Bureau data for 1997, there were 195 firms in this
category that operated for the entire year. Of these, 172 had annual
receipts of under $5 million, and an additional nine firms had receipts
of between $5 million and $9,999,999. Consequently, we estimate that
the majority of these firms are small entities that may be affected by
our action.
Data Processing, Hosting, and Related Services. Entities in this
category ``primarily * * * provid[e] infrastructure for hosting or data
processing services.'' The SBA has developed a small business size
standard for this category; that size standard is $21 million or less
in average annual receipts. According to Census Bureau data for 1997,
there were 3,700 firms in this category that operated for the entire
year. Of these, 3,477 had annual receipts of under $10 million, and an
additional 108 firms had receipts of between $10 million and
$24,999,999. Consequently, we estimate that the majority of these firms
are small entities that may be affected by our action.
All Other Information Services. ``This industry comprises
establishments primarily engaged in providing other information
services (except new syndicates and libraries and archives).'' We note
that, in this NPRM, we have described activities such as e-mail, online
gaming, web browsing, video conferencing, instant messaging, and other,
similar IP-enabled services. The SBA has developed a small business
size standard for this category; that size standard is $6 million or
less in average annual receipts. According to Census Bureau data for
1997, there were 195 firms in this category that operated for the
entire year. Of these, 172 had annual receipts of under $5 million, and
an additional nine firms had receipts of between $5 million and
$9,999,999. Consequently, we estimate that the majority of these firms
are small entities that may be affected by our action.
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 has developed a small business size standard for
this new (2002) census category; that size standard is 500 or fewer
employees. To assess the prevalence of small entities in this category,
we will use 1997 Census Bureau data for a relevant, now-superseded
census category, ``All Other Information Services.'' The SBA small
business size standard for that prior category was $6 million or less
in average annual receipts. According to Census Bureau data for 1997,
there were 195 firms in the prior category that operated for the entire
year. Of these, 172 had annual receipts of under $5 million, and an
additional nine firms had receipts of between $5 million and
$9,999,999. Consequently, we estimate that the majority of these firms
are small entities that may be affected by our action.
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
[[Page 16200]]
specific users. The SBA has developed a small business size standard of
$21 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 1997 indicate that there were 8,188 firms in the
category that operated for the entire year. Of these, 7,633 had annual
receipts under $10 million, and an additional 289 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
19,334 firms that operated for the entire year. Of these, 18,786 had
annual receipts of under $10 million, and an additional 352 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 5,524 firms that operated for the entire year. Of these, 5,484 had
annual receipts of under $10 million, and an additional 28 firms had
receipts of between $10 million and $24,999,999.
Equipment Manufacturers. In this NPRM, we invite comment on whether
the disability access provisions of sections 255 and 252(a)(2) of the
Act, as well as the Commission's Rules implementing these statutes in
the Disability Access Order, apply in the context of VoIP and other IP-
enabled services. Section V.B.1 notes that sections 255 and 252(a)(2)
and the Commission's implementing rules apply to manufacturers of
equipment that the Act and the rules deem covered by the provisions.
The Commission currently does not collect data regarding how many, or
which, companies manufacture such equipment. Thus, out of an abundance
of caution, we have perhaps been over-inclusive in creating the
following list of possibly covered entities. Again, commenters are
invited to comment on these categories and on the possible number of
small entities within these categories.
Wireless Communications Equipment Manufacturers. The SBA has
established a small business size standard for Radio and Television
Broadcasting and Wireless Communications Equipment Manufacturing.
Examples of products in this category include ``transmitting and
receiving antennas, cable television equipment, GPS equipment, pagers,
cellular phones, mobile communications equipment, and radio and
television studio and broadcasting equipment'' and may include other
devices that transmit and receive IP-enabled services, such as personal
digital assistants (PDAs). Under the SBA size standard, firms are
considered small if they have 750 or fewer employees. According to
Census Bureau data for 1997, there were 1,215 establishments in this
category that operated for the entire year. Of those, there were 1,150
that employed fewer than 500 employees, and an additional 37 that
employed 500 to 999 employees. The percentage of wireless equipment
manufacturers in this category was approximately 61.35%, so we estimate
that the number of wireless equipment manufacturers with employment of
under 500 was actually closer to 706, with an additional 23
establishments having employment of between 500 and 999. Consequently,
we estimate that the majority of these firms are small entities that
may be affected by our action.
Telephone Apparatus Manufacturing. This category ``comprises
establishments primarily engaged in manufacturing wire telephone and
data communications equipment.'' Examples of pertinent products are
``central office switching equipment, cordless telephones (except
cellular), PBX equipment, telephones, telephone answering machines, and
data communications equipment, such as bridges, routers, and
gateways.'' The SBA has developed a small business size standard for
this category of manufacturing; that size standard is 1,000 or fewer
employees. According to Census Bureau data for 1997, there were 598
establishments in this category that operated for the entire year. Of
these, 574 had employment of under 1,000, and an additional 17
establishments had employment of 1,000 to 2,499. Consequently, we
estimate that the majority of these firms are small entities that may
be affected by our action.
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 developed a
small business size standard for this category of manufacturing; that
size standard is 1,000 or fewer employees. According to Census Bureau
data for 1997, there were 563 establishments in this category that
operated for the entire year. Of these, 544 had employment of under
1,000, and an additional 11 establishments had employment of 1,000 to
2,499. Consequently, we estimate that the majority of these
establishments are small entities that may be affected by our action.
Computer Terminal Manufacturing. ``Computer terminals are input/
output devices that connect with a central computer for processing.''
The SBA has developed a small business size standard for this category
of manufacturing; that size standard is 1,000 or fewer employees.
According to Census Bureau data for 1997, there were 142 establishments
in this category that operated for the entire year, and all of the
establishments had employment of under 1,000. Consequently, we estimate
that the majority or all of these establishments are small entities
that may be affected by our action.
Other Computer Peripheral Equipment Manufacturing. Examples of
peripheral equipment in this category include keyboards, mouse devices,
monitors, and scanners. The SBA has developed a small business size
standard for this category of manufacturing; that size standard is
1,000 or fewer employees. According to Census Bureau data for 1997,
there were 1,061 establishments in this category that operated for the
entire year. Of these, 1,046 had employment of under 1,000, and an
additional six establishments had employment of 1,000 to 2,499.
Consequently, we estimate that the majority of these establishments are
small entities that may be affected by our action.
Fiber Optic Cable Manufacturing. These establishments manufacture
``insulated fiber-optic cable from purchased fiber-optic strand.'' The
SBA has developed a small business size standard for this category of
manufacturing; that size standard is 1,000 or fewer employees.
According to Census Bureau data for 1997, there were 38 establishments
in this category that operated for the entire year. Of these, 37 had
employment of under 1,000, and one establishment had employment of
1,000 to 2,499. Consequently, we estimate that the majority of these
establishments are small entities that may be affected by our action.
Other Communication and Energy Wire Manufacturing. These
establishments manufacture ``insulated wire and cable of nonferrous
metals from purchased wire.'' The SBA has developed a small business
size standard for this category of manufacturing; that size standard is
1,000 or fewer employees. According to Census Bureau data for 1997,
there were 275 establishments in this category that operated for the
entire year. Of these, 271 had employment of under 1,000, and four
establishments had employment of 1,000 to 2,499. Consequently, we
estimate that the majority or all of these establishments are small
entities that may be affected by our action.
[[Page 16201]]
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 has developed a small business size standard
for this category of manufacturing; that size standard is 750 or fewer
employees. According to Census Bureau data for 1997, there were 554
establishments in this category that operated for the entire year. Of
these, 542 had employment of under 500, and nine establishments had
employment of 500 to 999. Consequently, we estimate that the majority
of these establishments are small entities that may be affected by our
action.
Electron Tube Manufacturing. These establishments are ``primarily
engaged in manufacturing electron tubes and parts (except glass
blanks).'' The SBA has developed a small business size standard for
this category of manufacturing; that size standard is 750 or fewer
employees. According to Census Bureau data for 1997, there were 158
establishments in this category that operated for the entire year. Of
these, 148 had employment of under 500, and three establishments had
employment of 500 to 999. Consequently, we estimate that the majority
of these establishments are small entities that may be affected by our
action.
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
has developed a small business size standard for this category of
manufacturing; that size standard is 500 or fewer employees. According
to Census Bureau data for 1997, there were 1,389 establishments in this
category that operated for the entire year. Of these, 1,369 had
employment of under 500, and 16 establishments had employment of 500 to
999. Consequently, we estimate that the majority of these
establishments are small entities that may be affected by our action.
Semiconductor and Related Device Manufacturing. These
establishments manufacture ``computer storage devices that allow the
storage and retrieval of data from a phase change, magnetic, optical,
or magnetic/optical media.'' The SBA has developed a small business
size standard for this category of manufacturing; that size standard is
500 or fewer employees. According to Census Bureau data for 1997, there
were 1,082 establishments in this category that operated for the entire
year. Of these, 987 had employment of under 500, and 52 establishments
had employment of 500 to 999.
Electronic Capacitor Manufacturing. These establishments
manufacture ``electronic fixed and variable capacitors and
condensers.'' The SBA has developed a small business size standard for
this category of manufacturing; that size standard is 500 or fewer
employees. According to Census Bureau data for 1997, there were 128
establishments in this category that operated for the entire year. Of
these, 121 had employment of under 500, and four establishments had
employment of 500 to 999.
Electronic Resistor Manufacturing. These establishments manufacture
``electronic resistors, such as fixed and variable resistors, resistor
networks, thermistors, and varistors.'' The SBA has developed a small
business size standard for this category of manufacturing; that size
standard is 500 or fewer employees. According to Census Bureau data for
1997, there were 118 establishments in this category that operated for
the entire year. Of these, 113 had employment of under 500, and 5
establishments had employment of 500 to 999.
Electronic Coil, Transformer, and Other Inductor Manufacturing.
These establishments manufacture ``electronic inductors, such as coils
and transformers.'' The SBA has developed a small business size
standard for this category of manufacturing; that size standard is 500
or fewer employees. According to Census Bureau data for 1997, there
were 448 establishments in this category that operated for the entire
year. Of these, 446 had employment of under 500, and two establishments
had employment of 500 to 999.
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
has developed a small business size standard for this category of
manufacturing; that size standard is 500 or fewer employees. According
to Census Bureau data for 1997, there were 347 establishments in this
category that operated for the entire year. Of these, 332 had
employment of under 500, and 12 establishments had employment of 500 to
999.
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 has developed a small business size standard
for this category of manufacturing; that size standard is 500 or fewer
employees. According to Census Bureau data for 1997, there were 714
establishments in this category that operated for the entire year. Of
these, 673 had employment of under 500, and 24 establishments had
employment of 500 to 999.
Other Electronic Component Manufacturing. These are establishments
``primarily engaged in loading components onto printed circuit boards
or who manufacture and ship loaded printed circuit boards.'' The SBA
has developed a small business size standard for this category of
manufacturing; that size standard is 500 or fewer employees. According
to Census Bureau data for 1997, there were 1,835 establishments in this
category that operated for the entire year. Of these, 1,814 had
employment of under 500, and 18 establishments had employment of 500 to
999.
Computer Storage Device Manufacturing. These establishments
manufacture ``computer storage devices that allow the storage and
retrieval of data from a phase change, magnetic, optical, or magnetic/
optical media.'' The SBA has developed a small business size standard
for this category of manufacturing; that size standard is 1,000 or
fewer employees. According to Census Bureau data for 1997, there were
209 establishments in this category that operated for the entire year.
Of these, 197 had employment of under 500, and eight establishments had
employment of 500 to 999.
4. Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements
None at this time.
5. 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. 5 U.S.C. 603(c).
The NPRM expressly states that the Commission may ultimately need
to
[[Page 16202]]
differentiate among various IP-enabled services, and that regulation
may be deemed inappropriate with regard to most, if not all, IP-enabled
services, applications or providers. It thus seeks comment on the
appropriate grounds on which to differentiate among providers of IP-
enabled services. The NPRM further seeks comment on the appropriate
legal classification for each category of IP-enabled services, and on
which regulatory requirements, if any, should be applied to services
falling into each category. The NPRM makes no conclusions regarding
which regulations, if any, would apply to any entity, including small
entities. We seek comment here on the effect various proposals will
have on small entities, and on the effect alternative rules would have
on those entities.
6. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rules
None.
15. Pursuant to the authority contained in sections 1, 4(i), and
4(j) of the Communications Act of 1934, as amended, 47 U.S.C. 151,
154(i), 154(j), this Notice of Proposed Rulemaking is adopted.
16. That the Commission's Consumer and Governmental Affairs Bureau,
Reference Information Center, shall send a copy of this Notice of
Proposed Rulemaking, including the IRFA, to the Chief Counsel for
Advocacy of the Small Business Administration, in accordance with the
Regulatory Flexibility Act.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 04-6944 Filed 3-26-04; 8:45 am]
BILLING CODE 6712-01-P