Home/Federal/Federal Register/2022-27373

Rule2022-27373

Establishing the Digital Opportunity Data Collection, Modernizing the Form 477 Data Collection

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published

December 16, 2022

Effective

December 16, 2022

Issuing agencies

Federal Communications Commission

Abstract

In this document the Commission sunsets the collection of broadband deployment data through Form 477 effective upon publication in the Federal Register. The Commission will continue to collect broadband and voice subscription data using Form 477 but filers will submit the data through the Broadband Data Collection (BDC) system. The Commission also delegates authority to various Commission staff to take other actions related to the collection and use of Form 477 data.

Full Text

<html>
<head>
<title>Federal Register, Volume 87 Issue 241 (Friday, December 16, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 241 (Friday, December 16, 2022)]
[Rules and Regulations]
[Pages 76949-76959]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-27373]

=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[WC Docket Nos. 19-195, 11-10, FCC 22-93, FR ID 118659]

Establishing the Digital Opportunity Data Collection, Modernizing
the Form 477 Data Collection

AGENCY: Federal Communications Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: In this document the Commission sunsets the collection of
broadband deployment data through Form 477 effective upon publication
in the Federal Register. The Commission will continue to collect
broadband and voice subscription data using Form 477 but filers will
submit the data through the Broadband Data Collection (BDC) system. The
Commission also delegates authority to various Commission staff to take
other actions related to the collection and use of Form 477 data.

DATES: Effective December 16, 2022.

ADDRESSES: Federal Communications Commission, 45 L Street NE,
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: William Holloway at
<a href="/cdn-cgi/l/email-protection#683f0104040109054620070404071f0911280e0b0b460f071e"><span class="__cf_email__" data-cfemail="b0e7d9dcdcd9d1dd9ef8dfdcdcdfc7d1c9f0d6d3d39ed7dfc6">[email&#160;protected]</span></a>, (202) 418-2334, Broadband Policy Task Force.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's
document, Order, FCC 22-93, in WC Docket Nos. 19-195, 11-10, released
on Dec. 9, 2022. The full text of this document is available for public
inspection and can be downloaded at <a href="https://www.fcc.gov/document/fcc-sunsets-form-477-broadband-data-collection">https://www.fcc.gov/document/fcc-sunsets-form-477-broadband-data-collection</a>.
People With Disabilities. To request materials in accessible
formats for people with disabilities (braille, large print, electronic
files, audio format), send an email to <a href="/cdn-cgi/l/email-protection#3e585d5d0b0e0a7e585d5d10595148"><span class="__cf_email__" data-cfemail="10767373252024507673733e777f66">[email&#160;protected]</span></a> or call the
Consumer & Government Affairs Bureau at 202-418-0530 (voice), 202-418-
0432 (tty).
Paperwork Reduction Act. This document does not contain new or
modified information collection(s) subject to the Paperwork Reduction
Act of 1995 (PRA), Public Law 104-13, as the requirements adopted in
this document are statutorily exempted from the requirements of the
PRA. As a result, the document will not be submitted to OMB for review
under Section 3507(d) of the PRA.
Congressional Review Act. The Commission has determined, and the
Administrator of the Office of Information and Regulatory Affairs,
Office of Management and Budget, concurs, that these rules are ``non-
major'' under the Congressional Review Act, 5 U.S.C. 804(2). The
Commission will send a copy of this document to Congress and the
Government Accountability Office pursuant to 5 U.S.C. 801(a)(1)(A).

Synopsis

In this document, the Commission takes another step in its efforts
to implement the Broadband Data Collection (BDC) and modernize the FCC
Form 477 data program. Consistent with the Broadband Deployment
Accuracy and Technological Availability Act (the Broadband DATA Act or
the Act) and the Third Report and Order (85 FR 18124, April 7, 2021),
the Commission sunsets the collection of broadband deployment data
through FCC Form 477 effective upon publication of this document in the
Federal Register.

I. Discussion

1. Sunsetting the Collection of Broadband Deployment Data through
Form 477. In this document, we sunset the collection of broadband
deployment data through Form 477 effective upon publication of this
document in the Federal Register. The Commission sought comment on
sunsetting the Form 477 broadband deployment data collection in 2019
and again in 2020, and indicated that it expected the new broadband
data collection being developed would largely displace the Form 477
process, particularly with respect to the collection of more precise
deployment data.
2. Since the 2019 Order and Second Further Notice (84 FR 43705,
Sept. 23, 2019) and the Second Report and Order and Third Further
Notice (85 FR 50886, Aug. 18, 2020), we have made significant efforts
to improve the quality of the broadband deployment data it collects.
The Broadband DATA Act was enacted in 2020 and required the Commission
to take steps to develop more granular broadband maps. The Commission
has implemented the Act by adopting orders establishing the BDC and
requiring broadband providers to file broadband availability data based
on standardized and precise parameters, developing the Fabric as a
common dataset of all locations where fixed broadband services can be
installed, and establishing processes for the verification of data
submitted by filers and for members of the public and other entities to
challenge the accuracy of providers' data. To implement these
processes, we have designed, developed, and launched the necessary
information technology systems to support the BDC, including a new
filing interface for BDC data, a BDC help center to provide technical
assistance, and online video tutorials and webinars explaining, among
other things, the BDC availability data and challenge submission
processes. Based on this effort, the first broadband data collection
under the BDC was launched on June 30, 2022 and, on September 1, 2022,
the first filing window for the BDC closed. The Federal Communications
Commission (FCC or Commission) subsequently published the new data on
November 18, 2022. At the same time, broadband providers were required
to submit Form 477 data as of June 30, 2022 in the Form 477 filing
interface which was also due no later than September 1, 2022.
3. We find that it is now appropriate to sunset the collection of
broadband deployment data through Form 477. We have made significant
progress in implementing the BDC including the completion of the first
BDC collection of broadband availability data and resulting publication
of updated maps and data. We therefore now have a process in place for
collecting more precise location-specific data from fixed broadband
service providers and using more uniform standards for mobile broadband
providers than the processes and standards used for the Form 477
process. Having to file concurrent Form 477 data in addition to their
BDC data imposes significant burdens on providers, and we find it is
unnecessary

[[Page 76950]]

to have additional rounds of overlapping collections of BDC
availability data and Form 477 deployment data. We disagree with those
commenters who argue that a longer transition period is necessary to
ensure that the BDC is well established and will provide useful data.
Congress has provided funding and the Commission has implemented the
complex technical systems necessary to support the BDC. In addition, we
are confident, based on the detailed standards the Commission has
established, and the newly released data, that we can now make
available more granular and consistent data through the BDC and the new
BDC maps. The BDC also incorporates verification and challenge
processes that will help ensure that our broadband maps will improve
over time based on input from various consumers, as well as state and
Tribal governments and other stakeholders. We find that continuing the
parallel collection of broadband deployment data through Form 477 based
on parameters that we know lack sufficient detail is no longer
necessary to support our objective of developing a more precise picture
of broadband availability across the country. Sunsetting the collection
of broadband deployment data through Form 477 will reduce burdens on
providers by eliminating the need for concurrent filings in both the
Form 477 and BDC systems. By removing the need to separately file
deployment data in the Form 477 system, sunsetting the collection will
also enable providers to devote more resources to the processes
established to improve BDC data. In addition, sunsetting the collection
of Form 477 deployment data will help ensure efficient use of
Commission resources by allowing Commission staff to focus their
analysis on the broadband deployment data submitted pursuant to the
rules and processes required under the BDC. We also disagree with
commenters who expressed support for maintaining the Form 477 census-
based broadband deployment data collection. These comments were filed
prior to the passage of the Broadband DATA Act, and we find that the
standards and processes that we have adopted to implement the
requirements of the Act will ensure that we collect and make available
to the public more useful broadband availability data than the data
previously available through Form 477.
4. Although we sunset the collection of Form 477 broadband
deployment data, providers must continue to submit the subscription
data required under Form 477. Going forward, however, the BDC system,
rather than the Form 477 filing platform, will be used for the
submission of both the subscription data collected for Form 477 and the
availability data collected for the BDC. Therefore, beginning with data
as of December 31, 2022, providers are required to submit the following
data using the BDC filing system: fixed and mobile broadband and voice
Form 477 subscription data, fixed and mobile BDC broadband availability
data, BDC mobile voice availability data. The Form 477 filing system
will no longer be used to collect new Form 477 submissions, and will
remain open only for filers to make corrections to existing Form 477
filings for data as of June 30, 2022 and earlier. The Form 477
instructions will be updated to reflect the changes we adopt today.
5. Other Matters. We recognize that the Commission currently relies
upon information from its Form 477 data collection in other contexts,
including, among other things, to assess the deployment of broadband
services and the state of competition in local telecommunications
services. We therefore delegate certain additional responsibilities
related to transitioning away from reliance on Form 477 deployment data
for other uses and purposes within the Commission. We delegate
authority and direct the Wireless Telecommunications Bureau (WTB) and
the Office of Economics and Analytics (OEA) to provide instructions to
mobile providers that participate in the Alaska Plan on how to submit
coverage data after the sunsetting of the Form 477 broadband deployment
data collection, including whether to use the BDC filing system for
submission of data currently submitted using the Form 477 filing system
that are specific to Alaska. We delegate authority and direct the
Wireline Competition Bureau (WCB) to provide instructions to providers
that participate in either the Bringing Puerto Rico Together Fund or
the Connect USVI Fund on how to submit coverage data that are specific
to Puerto Rico and the U.S. Virgin Islands to comply with the
requirements of those funding mechanisms. For Business Data Services
(BDS, also formerly known as Special Access services), we delegate to
WCB and OEA the authority to conduct a rulemaking to determine the best
way to implement the required competitive market tests using BDC
instead of Form 477 data. Consistent with existing delegations, we
delegate to WCB authority to develop broadband deployment obligations
for Connect America Fund Broadband Loop Support recipients pursuant to
Sec. 54.308(a)(2), which currently specifies use of Form 477 data for
certain calculations. This rulemaking authority is limited to the
modification of existing rules and adoption of new rules as needed to
facilitate the transition from the use of Form 477 data to the use of
the BDC to conduct the triennial competitive market tests beginning
with the 2026 triennial update. We also delegate additional
responsibilities to WCB, WTB, the International Bureau (IB), and OEA as
may be necessary related to the collection and use of Form 477
deployment data for other similar such uses and purposes within the
Commission.

II. Final Regulatory Flexibility Analysis

6. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was
incorporated in the 2019 Order and Second Further Notice released in
August 2019 and the Second Report and Order and Third Further Notice
released in July 2020 in this proceeding. The Commission sought written
public comment on the proposals in the Second Further Notice and Third
Further Notice including comments on the IRFA. No comments were filed
addressing the IRFA. This Final Regulatory Flexibility Analysis (FRFA)
conforms to the RFA.

Need for, and Objectives of, the Order

7. The document continues the Commission's efforts to implement the
Broadband Data Collection (BDC) and modernize the FCC Form 477 (Form
477) data program. Consistent with the Broadband Deployment Accuracy
and Technological Availability Act (Broadband DATA Act) and the Third
Report and Order, the document sunsets the collection of broadband
deployment data through Form 477. The document also delegates authority
to various Commission staff to take other actions related to the
collection and use of Form 477 data involving the Alaska Plan, the
Bringing Together Puerto Rico Fund or Connect USVI Fund and for
Business Data Services (BDS, formerly known as Special Access
services).
8. The sunset of the collection of broadband data through Form 477
follows the Commission's inquiries in this proceeding on the conditions
under which it would be appropriate to sunset this data collection and
the appropriate timetable to implement the sunset, since the Commission
expected the Form 477 process, at least with respect to the collection
of granular deployment data to be displaced by the BDC. The Commission
sought comment in the

[[Page 76951]]

2019 Order and Second Further Notice on discontinuing the broadband
deployment data collection that is part of Form 477 at some point after
the new collection has been established; the conditions and timetable
for discontinuing the collection of broadband deployment data under
Form 477 for both the mobile and fixed collections and whether there
were other portions of the Form 477 collection that should be sunset.
9. In the Second Report and Order and Third Further Notice, the
Commission created broadband availability reporting requirements for
fixed and mobile broadband service providers and proposed to ``continue
the current census-based deployment data collection under Form 477 for
at least one reporting cycle after the new granular reporting
collection commences.'' The Commission sought comment on ``sunsetting
the census-block broadband deployment reporting in the FCC Form 477 and
the timing of doing so.'' Thereafter, in the Third Report and Order,
the Commission deferred the sunsetting of the Form 477 broadband
deployment data collection to a later, to-be-determined date after
further refining the availability data collection requirements,
promulgating a framework for the challenge process requirements set out
in the Broadband DATA Act and establishing the requirements for the
collection and submission of verified availability data from
governmental entities and other third parties.
10. On February 22, 2022, the Commission's Broadband Data Task
Force (Task Force) and OEA announced the filing dates for the initial
BDC availability data collection (coverage data as of June 30, 2022,
must have been submitted no later than September 1, 2022). This notice
of the initial filing date for the BDC did not alter the obligation of
service providers to file the semiannual Form 477 filing. All service
providers were still required to submit these data under Form 477. In
light of the significant progress that the Commission has made in
implementing the BDC and the conclusion of the first data collection
into the BDC system, the Commission determined that it is now
appropriate to sunset the collection of broadband deployment data
through Form 477.

Summary of Significant Issues Raised by Public Comments in Response to
the IRFA

11. There were no comments filed that specifically addressed the
proposed rules and policies presented in the IRFAs.

Response to Comments by the Chief Counsel for Advocacy of the Small
Business Administration

12. Pursuant to the Small Business Jobs Act of 2010, which amended
the RFA, the Commission is required to respond to any comments filed by
the Chief Counsel for Advocacy of the Small Business Administration
(SBA) and to provide a detailed statement of any change made to the
proposed rules as a result of those comments. The Chief Counsel did not
file comments in response to the proposed rules in this proceeding.

Description and Estimate of the Number of Small Entities to Which the
Rules Will Apply

13. 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 SBA.
14. Small Businesses, Small Organizations, Small Governmental
Jurisdictions. Our actions, over time, may affect small entities that
are not easily categorized at present. We therefore describe, at the
outset, three broad groups of small entities that could be directly
affected herein. First, while there are industry specific size
standards for small businesses that are used in the regulatory
flexibility analysis, according to data from the Small Business
Administration's (SBA) Office of Advocacy, in general a small business
is an independent business having fewer than 500 employees. These types
of small businesses represent 99.9% of all businesses in the United
States, which translates to 32.5 million businesses.
15. Next, the type of small entity described as a ``small
organization'' is generally ``any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field.''
The Internal Revenue Service (IRS) uses a revenue benchmark of $50,000
or less to delineate its annual electronic filing requirements for
small exempt organizations. Nationwide, for tax year 2020, there were
approximately 447,689 small exempt organizations in the U.S. reporting
revenues of $50,000 or less according to the registration and tax data
for exempt organizations available from the IRS.
16. Finally, the small entity described as a ``small governmental
jurisdiction'' is defined generally as ``governments of cities,
counties, towns, townships, villages, school districts, or special
districts, with a population of less than fifty thousand.'' U.S. Census
Bureau data from the 2017 Census of Governments indicate there were
90,075 local governmental jurisdictions consisting of general purpose
governments and special purpose governments in the United States. Of
this number, there were 36,931 general purpose governments (county,
municipal, and town or township) with populations of less than 50,000
and 12,040 special purpose governments--independent school districts
with enrollment populations of less than 50,000. Accordingly, based on
the 2017 U.S. Census of Governments data, we estimate that at least
48,971 entities fall into the category of ``small governmental
jurisdictions.''
Broadband internet Access Service Providers
18. Wired Broadband internet Access Service Providers (Wired ISPs).
Providers of wired broadband internet access service include various
types of providers except dial-up internet access providers. Wireline
service that terminates at an end user location or mobile device and
enables the end user to receive information from and/or send
information to the internet at information transfer rates exceeding 200
kilobits per second (kbps) in at least one direction is classified as a
broadband connection under the Commission's rules. Wired broadband
internet services fall in the Wired Telecommunications Carriers
industry. The SBA small business size standard for this industry
classifies firms having 1,500 or fewer employees as small. U.S. Census
Bureau data for 2017 show that there were 3,054 firms that operated in
this industry for the entire year. Of this number, 2,964 firms operated
with fewer than 250 employees.
19. Additionally, according to Commission data on internet access
services as of December 31, 2018, nationwide there were approximately
2,700 providers of connections over 200 kbps in at least one direction
using various wireline technologies. The Commission does not collect
data on the number of employees for providers of these services,
therefore, at this time we are not able to estimate the number of

[[Page 76952]]

providers that would qualify as small under the SBA's small business
size standard. However, in light of the general data on fixed
technology service providers in the Commission's 2020 Communications
Marketplace Report, we believe that the majority of wireline internet
access service providers can be considered small entities.
20. Wireless Broadband internet Access Service Providers (Wireless
ISPs or WISPs). Providers of wireless broadband internet access service
include fixed and mobile wireless providers. The Commission defines a
WISP as ``[a] company that provides end-users with wireless access to
the internet[.]'' Wireless service that terminates at an end user
location or mobile device and enables the end user to receive
information from and/or send information to the internet at information
transfer rates exceeding 200 kilobits per second (kbps) in at least one
direction is classified as a broadband connection under the
Commission's rules. Neither the SBA nor the Commission have developed a
size standard specifically applicable to Wireless Broadband internet
Access Service Providers. The closest applicable industry with an SBA
small business size standard is Wireless Telecommunications Carriers
(except Satellite). The SBA size standard for this industry classifies
a business as small if it has 1,500 or fewer employees. U.S. Census
Bureau data for 2017 show that there were 2,893 firms in this industry
that operated for the entire year. Of that number, 2,837 firms employed
fewer than 250 employees.
21. Additionally, according to Commission data on internet access
services as of December 31, 2018, nationwide there were approximately
1,209 fixed wireless and 71 mobile wireless providers of connections
over 200 kbps in at least one direction. The Commission does not
collect data on the number of employees for providers of these
services, therefore, at this time we are not able to estimate the
number of providers that would qualify as small under the SBA's small
business size standard. However, based on data in the Commission's 2020
Communications Marketplace Report on the small number of large mobile
wireless nationwide and regional facilities-based providers, the dozens
of small regional facilities-based providers and the number of wireless
mobile virtual network providers in general, as well as on terrestrial
fixed wireless broadband providers in general, we believe that the
majority of wireless internet access service providers can be
considered small entities.
Wireline Providers
22. Wired Telecommunications Carriers. The U.S. Census Bureau
defines this industry as establishments primarily engaged in operating
and/or providing access to transmission facilities and infrastructure
that they own and/or lease for the transmission of voice, data, text,
sound, and video using wired communications networks. Transmission
facilities may be based on a single technology or a combination of
technologies. Establishments in this industry use the wired
telecommunications network facilities that they operate to provide a
variety of services, such as wired telephony services, including VoIP
services, wired (cable) audio and video programming distribution, and
wired broadband internet services. By exception, establishments
providing satellite television distribution services using facilities
and infrastructure that they operate are included in this industry.
Wired Telecommunications Carriers are also referred to as wireline
carriers or fixed local service providers.
23. The SBA small business size standard for Wired
Telecommunications Carriers classifies firms having 1,500 or fewer
employees as small. U.S. Census Bureau data for 2017 show that there
were 3,054 firms that operated in this industry for the entire year. Of
this number, 2,964 firms operated with fewer than 250 employees.
Additionally, based on Commission data in the 2021 Universal Service
Monitoring Report, as of December 31, 2020, there were 5,183 providers
that reported they were engaged in the provision of fixed local
services. Of these providers, the Commission estimates that 4,737
providers have 1,500 or fewer employees. Consequently, using the SBA's
small business size standard, most of these providers can be considered
small entities.
24. Local Exchange Carriers (LECs). Neither the Commission nor the
SBA has developed a size standard for small businesses specifically
applicable to local exchange services. Providers of these services
include both incumbent and competitive local exchange service
providers. Wired Telecommunications Carriers is the closest industry
with a SBA small business size standard. Wired Telecommunications
Carriers are also referred to as wireline carriers or fixed local
service providers. The SBA small business size standard for Wired
Telecommunications Carriers classifies firms having 1,500 or fewer
employees as small. U.S. Census Bureau data for 2017 show that there
were 3,054 firms that operated in this industry for the entire year. Of
this number, 2,964 firms operated with fewer than 250 employees.
Additionally, based on Commission data in the 2021 Universal Service
Monitoring Report, as of December 31, 2020, there were 5,183 providers
that reported they were fixed local exchange service providers. Of
these providers, the Commission estimates that 4,737 providers have
1,500 or fewer employees. Consequently, using the SBA's small business
size standard, most of these providers can be considered small
entities.
25. Incumbent Local Exchange Carriers (Incumbent LECs). Neither the
Commission nor the SBA have developed a small business size standard
specifically for incumbent local exchange carriers. Wired
Telecommunications Carriers is the closest industry with a SBA small
business size standard. The SBA small business size standard for Wired
Telecommunications Carriers classifies firms having 1,500 or fewer
employees as small. U.S. Census Bureau data for 2017 show that there
were 3,054 firms in this industry that operated for the entire year. Of
this number, 2,964 firms operated with fewer than 250 employees.
Additionally, based on Commission data in the 2021 Universal Service
Monitoring Report, as of December 31, 2020, there were 1,227 providers
that reported they were incumbent local exchange service providers. Of
these providers, the Commission estimates that 929 providers have 1,500
or fewer employees. Consequently, using the SBA's small business size
standard, the Commission estimates that the majority of incumbent local
exchange carriers can be considered small entities.
26. Competitive Local Exchange Carriers (LECs). Neither the
Commission nor the SBA has developed a size standard for small
businesses specifically applicable to local exchange services.
Providers of these services include several types of competitive local
exchange service providers. Wired Telecommunications Carriers is the
closest industry with a SBA small business size standard. The SBA small
business size standard for Wired Telecommunications Carriers classifies
firms having 1,500 or fewer employees as small. U.S. Census Bureau data
for 2017 show that there were 3,054 firms that operated in this
industry for the entire year. Of this number, 2,964 firms operated with
fewer than 250 employees. Additionally, based on Commission data in the
2021 Universal Service Monitoring Report, as of

[[Page 76953]]

December 31, 2020, there were 3,956 providers that reported they were
competitive local exchange service providers. Of these providers, the
Commission estimates that 3,808 providers have 1,500 or fewer
employees. Consequently, using the SBA's small business size standard,
most of these providers can be considered small entities.
27. Interexchange Carriers (IXCs). Neither the Commission nor the
SBA have developed a small business size standard specifically for
Interexchange Carriers. Wired Telecommunications Carriers is the
closest industry with a SBA small business size standard. The SBA small
business size standard for Wired Telecommunications Carriers classifies
firms having 1,500 or fewer employees as small. U.S. Census Bureau data
for 2017 show that there were 3,054 firms that operated in this
industry for the entire year. Of this number, 2,964 firms operated with
fewer than 250 employees. Additionally, based on Commission data in the
2021 Universal Service Monitoring Report, as of December 31, 2020,
there were 151 providers that reported they were engaged in the
provision of interexchange services. Of these providers, the Commission
estimates that 131 providers have 1,500 or fewer employees.
Consequently, using the SBA's small business size standard, the
Commission estimates that the majority of providers in this industry
can be considered small entities.
28. Operator Service Providers (OSPs). Neither the Commission nor
the SBA has developed a small business size standard specifically for
operator service providers. The closest applicable industry with a SBA
small business size standard is Wired Telecommunications Carriers. The
SBA small business size standard classifies a business as small if it
has 1,500 or fewer employees. U.S. Census Bureau data for 2017 show
that there were 3,054 firms in this industry that operated for the
entire year. Of this number, 2,964 firms operated with fewer than 250
employees. Additionally, based on Commission data in the 2021 Universal
Service Monitoring Report, as of December 31, 2020, there were 32
providers that reported they were engaged in the provision of operator
services. Of these providers, the Commission estimates that all 32
providers have 1,500 or fewer employees. Consequently, using the SBA's
small business size standard, all of these providers can be considered
small entities.
29. Other Toll Carriers. Neither the Commission nor the SBA has
developed a definition for small businesses specifically applicable to
Other Toll Carriers. This category includes toll carriers that do not
fall within the categories of interexchange carriers, operator service
providers, prepaid calling card providers, satellite service carriers,
or toll resellers. Wired Telecommunications Carriers is the closest
industry with a SBA small business size standard. The SBA small
business size standard for Wired Telecommunications Carriers classifies
firms having 1,500 or fewer employees as small. U.S. Census Bureau data
for 2017 show that there were 3,054 firms in this industry that
operated for the entire year. Of this number, 2,964 firms operated with
fewer than 250 employees. Additionally, based on Commission data in the
2021 Universal Service Monitoring Report, as of December 31, 2020,
there were 115 providers that reported they were engaged in the
provision of other toll services. Of these providers, the Commission
estimates that 113 providers have 1,500 or fewer employees.
Consequently, using the SBA's small business size standard, most of
these providers can be considered small entities.
30. Internet Service Providers (Non-Broadband). Internet access
service providers using client-supplied telecommunications connections
(e.g., dial-up ISPs) as well as VoIP service providers using client-
supplied telecommunications connections fall in the industry
classification of All Other Telecommunications. The SBA small business
size standard for this industry classifies firms with annual receipts
of $35 million or less as small. For this industry, U.S. Census Bureau
data for 2017 show that there were 1,079 firms in this industry that
operated for the entire year. Of those firms, 1,039 had revenue of less
than $25 million. Consequently, under the SBA size standard a majority
of firms in this industry can be considered small.
Wireless Providers--Fixed and Mobile
31. Wireless Telecommunications Carriers (except Satellite). This
industry comprises establishments engaged in operating and maintaining
switching and transmission facilities to provide communications via the
airwaves. Establishments in this industry have spectrum licenses and
provide services using that spectrum, such as cellular services, paging
services, wireless internet access, and wireless video services. The
SBA size standard for this industry classifies a business as small if
it has 1,500 or fewer employees. U.S. Census Bureau data for 2017 show
that there were 2,893 firms in this industry that operated for the
entire year. Of that number, 2,837 firms employed fewer than 250
employees. Additionally, based on Commission data in the 2021 Universal
Service Monitoring Report, as of December 31, 2020, there were 797
providers that reported they were engaged in the provision of wireless
services. Of these providers, the Commission estimates that 715
providers have 1,500 or fewer employees. Consequently, using the SBA's
small business size standard, most of these providers can be considered
small entities.
32. Wireless Communications Services. Wireless Communications
Services (WCS) can be used for a variety of fixed, mobile,
radiolocation, and digital audio broadcasting satellite services.
Wireless spectrum is made available and licensed for the provision of
wireless communications services in several frequency bands subject to
Part 27 of the Commission's rules. Wireless Telecommunications Carriers
(except Satellite) is the closest industry with a SBA small business
size standard applicable to these services. The SBA small business size
standard for this industry classifies a business as small if it has
1,500 or fewer employees. U.S. Census Bureau data for 2017 show that
there were 2,893 firms that operated in this industry for the entire
year. Of this number, 2,837 firms employed fewer than 250 employees.
Thus under the SBA size standard, the Commission estimates that a
majority of licensees in this industry can be considered small.
33. The Commission's small business size standards with respect to
WCS involve eligibility for bidding credits and installment payments in
the auction of licenses for the various frequency bands included in
WCS. When bidding credits are adopted for the auction of licenses in
WCS frequency bands, such credits may be available to several types of
small businesses based average gross revenues (small, very small and
entrepreneur) pursuant to the competitive bidding rules adopted in
conjunction with the requirements for the auction and/or as identified
in the designated entities section in Part 27 of the Commission's rules
for the specific WCS frequency bands.
34. In frequency bands where licenses were subject to auction, the
Commission notes that as a general matter, the number of winning
bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently
in service. Further, the Commission does not generally track subsequent
business size unless, in the context of assignments or transfers,

[[Page 76954]]

unjust enrichment issues are implicated. Additionally, since the
Commission does not collect data on the number of employees for
licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would
qualify as small under the SBA's small business size standard.
35. 1670-1675 MHz Services. These wireless communications services
can be used for fixed and mobile uses, except aeronautical mobile.
Wireless Telecommunications Carriers (except Satellite) is the closest
industry with a SBA small business size standard applicable to these
services. The SBA size standard for this industry classifies a business
as small if it has 1,500 or fewer employees. U.S. Census Bureau data
for 2017 show that there were 2,893 firms that operated in this
industry for the entire year. Of this number, 2,837 firms employed
fewer than 250 employees. Thus under the SBA size standard, the
Commission estimates that a majority of licensees in this industry can
be considered small.
36. According to Commission data as of November 2021, there were
three active licenses in this service. The Commission's small business
size standards with respect to 1670-1675 MHz Services involve
eligibility for bidding credits and installment payments in the auction
of licenses for these services. For licenses in the 1670-1675 MHz
service band, a ``small business'' is defined as an entity that,
together with its affiliates and controlling interests, has average
gross revenues not exceeding $40 million for the preceding three years,
and a ``very small business'' is defined as an entity that, together
with its affiliates and controlling interests, has had average annual
gross revenues not exceeding $15 million for the preceding three years.
The 1670-1675 MHz service band auction's winning bidder did not claim
small business status.
37. In frequency bands where licenses were subject to auction, the
Commission notes that as a general matter, the number of winning
bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently
in service. Further, the Commission does not generally track subsequent
business size unless, in the context of assignments or transfers,
unjust enrichment issues are implicated. Additionally, since the
Commission does not collect data on the number of employees for
licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would
qualify as small under the SBA's small business size standard.
38. Wireless Telephony. Wireless telephony includes cellular,
personal communications services, and specialized mobile radio
telephony carriers. The closest applicable industry with a SBA small
business size standard is Wireless Telecommunications Carriers (except
Satellite). The size standard for this industry under SBA rules is that
a business is small if it has 1,500 or fewer employees. For this
industry, U.S. Census Bureau data for 2017 show that there were 2,893
firms that operated for the entire year. Of this number, 2,837 firms
employed fewer than 250 employees. Additionally, based on Commission
data in the 2021 Universal Service Monitoring Report, as of December
31, 2020, there were 407 providers that reported they were engaged in
the provision of cellular, personal communications services, and
specialized mobile radio services. Of these providers, the Commission
estimates that 333 providers have 1,500 or fewer employees.
Consequently, using the SBA's small business size standard, most of
these providers can be considered small entities.
39. Broadband Personal Communications Service. The broadband
personal communications services (PCS) spectrum encompasses services in
the 1850-1910 and 1930-1990 MHz bands. The closest industry with a SBA
small business size standard applicable to these services is Wireless
Telecommunications Carriers (except Satellite). The SBA small business
size standard for this industry classifies a business as small if it
has 1,500 or fewer employees. U.S. Census Bureau data for 2017 show
that there were 2,893 firms that operated in this industry for the
entire year. Of this number, 2,837 firms employed fewer than 250
employees. Thus under the SBA size standard, the Commission estimates
that a majority of licensees in this industry can be considered small.
40. Based on Commission data as of November 2021, there were
approximately 5,060 active licenses in the Broadband PCS service. The
Commission's small business size standards with respect to Broadband
PCS involve eligibility for bidding credits and installment payments in
the auction of licenses for these services. In auctions for these
licenses, the Commission defined ``small business'' as an entity that,
together with its affiliates and controlling interests, has average
gross revenues not exceeding $40 million for the preceding three years,
and a ``very small business'' as an entity that, together with its
affiliates and controlling interests, has had average annual gross
revenues not exceeding $15 million for the preceding three years.
Winning bidders claiming small business credits won Broadband PCS
licenses in C, D, E, and F Blocks.
41. In frequency bands where licenses were subject to auction, the
Commission notes that as a general matter, the number of winning
bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently
in service. Further, the Commission does not generally track subsequent
business size unless, in the context of assignments or transfers,
unjust enrichment issues are implicated. Additionally, since the
Commission does not collect data on the number of employees for
licensees providing these, at this time we are not able to estimate the
number of licensees with active licenses that would qualify as small
under the SBA's small business size standard.
42. Specialized Mobile Radio Licenses. Special Mobile Radio (SMR)
licenses allow licensees to provide land mobile communications services
(other than radiolocation services) in the 800 MHz and 900 MHz spectrum
bands on a commercial basis including but not limited to services used
for voice and data communications, paging, and facsimile services, to
individuals, Federal Government entities, and other entities licensed
under Part 90 of the Commission's rules. Wireless Telecommunications
Carriers (except Satellite) is the closest industry with a SBA small
business size standard applicable to these services. The SBA size
standard for this industry classifies a business as small if it has
1,500 or fewer employees. For this industry, U.S. Census Bureau data
for 2017 show that there were 2,893 firms in this industry that
operated for the entire year. Of this number, 2,837 firms employed
fewer than 250 employees. Additionally, based on Commission data in the
2021 Universal Service Monitoring Report, as of December 31, 2020,
there were 119 providers that reported they were of SMR (dispatch)
providers. Of this number, the Commission estimates that all 119
providers have 1,500 or fewer employees. Consequently, using the SBA's
small business size standard, these 119 SMR licensees can be considered
small entities.
43. Based on Commission data as of December 2021, there were 3,924
active SMR licenses. However, since the Commission does not collect
data on the number of employees for licensees providing SMR services,
at this time we are not able to estimate the number of

[[Page 76955]]

licensees with active licenses that would qualify as small under the
SBA's small business size standard. Nevertheless, for purposes of this
analysis the Commission estimates that the majority of SMR licensees
can be considered small entities using the SBA's small business size
standard.
44. Lower 700 MHz Band Licenses. The lower 700 MHz band encompasses
spectrum in the 698-746 MHz frequency bands. Permissible operations in
these bands include flexible fixed, mobile, and broadcast uses,
including mobile and other digital new broadcast operation; fixed and
mobile wireless commercial services (including FDD- and TDD-based
services); as well as fixed and mobile wireless uses for private,
internal radio needs, two-way interactive, cellular, and mobile
television broadcasting services. Wireless Telecommunications Carriers
(except Satellite) is the closest industry with a SBA small business
size standard applicable to licenses providing services in these bands.
The SBA small business size standard for this industry classifies a
business as small if it has 1,500 or fewer employees. U.S. Census
Bureau data for 2017 show that there were 2,893 firms that operated in
this industry for the entire year. Of this number, 2,837 firms employed
fewer than 250 employees. Thus under the SBA size standard, the
Commission estimates that a majority of licensees in this industry can
be considered small.
45. According to Commission data as of December 2021, there were
approximately 2,824 active Lower 700 MHz Band licenses. The
Commission's small business size standards with respect to Lower 700
MHz Band licensees involve eligibility for bidding credits and
installment payments in the auction of licenses. For auctions of Lower
700 MHz Band licenses the Commission adopted criteria for three groups
of small businesses. A very small business was defined as an entity
that, together with its affiliates and controlling interests, has
average annual gross revenues not exceeding $15 million for the
preceding three years, a small business was defined as an entity that,
together with its affiliates and controlling interests, has average
gross revenues not exceeding $40 million for the preceding three years,
and an entrepreneur was defined as an entity that, together with its
affiliates and controlling interests, has average gross revenues not
exceeding $3 million for the preceding three years. In auctions for
Lower 700 MHz Band licenses seventy-two winning bidders claiming a
small business classification won 329 licenses, twenty-six winning
bidders claiming a small business classification won 214 licenses, and
three winning bidders claiming a small business classification won all
five auctioned licenses.
46. In frequency bands where licenses were subject to auction, the
Commission notes that as a general matter, the number of winning
bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently
in service. Further, the Commission does not generally track subsequent
business size unless, in the context of assignments or transfers,
unjust enrichment issues are implicated. Additionally, since the
Commission does not collect data on the number of employees for
licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would
qualify as small under the SBA's small business size standard.
47. Upper 700 MHz Band Licenses. The upper 700 MHz band encompasses
spectrum in the 746-806 MHz bands. Upper 700 MHz D Block licenses are
nationwide licenses associated with the 758-763 MHz and 788-793 MHz
bands. Permissible operations in these bands include flexible fixed,
mobile, and broadcast uses, including mobile and other digital new
broadcast operation; fixed and mobile wireless commercial services
(including FDD- and TDD-based services); as well as fixed and mobile
wireless uses for private, internal radio needs, two-way interactive,
cellular, and mobile television broadcasting services. Wireless
Telecommunications Carriers (except Satellite) is the closest industry
with a SBA small business size standard applicable to licenses
providing services in these bands. The SBA small business size standard
for this industry classifies a business as small if it has 1,500 or
fewer employees. U.S. Census Bureau data for 2017 show that there were
2,893 firms that operated in this industry for the entire year. Of that
number, 2,837 firms employed fewer than 250 employees. Thus, under the
SBA size standard, the Commission estimates that a majority of
licensees in this industry can be considered small.
48. According to Commission data as of December 2021, there were
approximately 152 active Upper 700 MHz Band licenses. The Commission's
small business size standards with respect to Upper 700 MHz Band
licensees involve eligibility for bidding credits and installment
payments in the auction of licenses. For the auction of these licenses,
the Commission defined a ``small business'' as an entity that, together
with its affiliates and controlling principals, has average gross
revenues not exceeding $40 million for the preceding three years, and a
``very small business'' 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. Pursuant to these
definitions, three winning bidders claiming very small business status
won five of the twelve available licenses.
49. 700 MHz Guard Band Licensees. The 700 MHz Guard Band
encompasses spectrum in 746-747/776-777 MHz and 762-764/792-794 MHz
frequency bands. Wireless Telecommunications Carriers (except
Satellite) is the closest industry with a SBA small business size
standard applicable to licenses providing services in these bands. The
SBA small business size standard for this industry classifies a
business as small if it has 1,500 or fewer employees. U.S. Census
Bureau data for 2017 show that there were 2,893 firms that operated in
this industry for the entire year. Of this number, 2,837 firms employed
fewer than 250 employees. Thus under the SBA size standard, the
Commission estimates that a majority of licensees in this industry can
be considered small.
50. According to Commission data as of December 2021, there were
approximately 224 active 700 MHz Guard Band licenses. The Commission's
small business size standards with respect to 700 MHz Guard Band
licensees involve eligibility for bidding credits and installment
payments in the auction of licenses. For the auction of these licenses,
the Commission defined a ``small business'' as an entity that, together
with its affiliates and controlling principals, has average gross
revenues not exceeding $40 million for the preceding three years, and a
``very small business'' 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. Pursuant to these
definitions, five winning bidders claiming one of the small business
status classifications won 26 licenses, and one winning bidder claiming
small business won two licenses. None of the winning bidders claiming a
small business status classification in these 700 MHz Guard Band
license auctions had an active license as of December 2021.
51. In frequency bands where licenses were subject to auction, the
Commission notes that as a general matter, the number of winning
bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses

[[Page 76956]]

currently in service. Further, the Commission does not generally track
subsequent business size unless, in the context of assignments or
transfers, unjust enrichment issues are implicated. Additionally, since
the Commission does not collect data on the number of employees for
licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would
qualify as small under the SBA's small business size standard.
52. Air-Ground Radiotelephone Service. Air-Ground Radiotelephone
Service is a wireless service in which licensees are authorized to
offer and provide radio telecommunications service for hire to
subscribers in aircraft. A licensee may provide any type of air-ground
service (i.e., voice telephony, broadband internet, data, etc.) to
aircraft of any type, and serve any or all aviation markets
(commercial, government, and general). A licensee must provide service
to aircraft and may not provide ancillary land mobile or fixed services
in the 800 MHz air-ground spectrum.
53. The closest industry with a SBA small business size standard
applicable to these services is Wireless Telecommunications Carriers
(except Satellite). The SBA small business size standard for this
industry classifies a business as small if it has 1,500 or fewer
employees. U.S. Census Bureau data for 2017 show that there were 2,893
firms that operated in this industry for the entire year. Of this
number, 2,837 firms employed fewer than 250 employees. Thus under the
SBA size standard, the Commission estimates that a majority of
licensees in this industry can be considered small.
54. Based on Commission data as of December 2021, there were
approximately four licensees with 110 active licenses in the Air-Ground
Radiotelephone Service. The Commission's small business size standards
with respect to Air-Ground Radiotelephone Service involve eligibility
for bidding credits and installment payments in the auction of
licenses. For purposes of auctions, the Commission defined ``small
business'' as an entity that, together with its affiliates and
controlling interests, has average gross revenues not exceeding $40
million for the preceding three years, and a ``very small business'' as
an entity that, together with its affiliates and controlling interests,
has had average annual gross revenues not exceeding $15 million for the
preceding three years. In the auction of Air-Ground Radiotelephone
Service licenses in the 800 MHz band, neither of the two winning
bidders claimed small business status.
55. In frequency bands where licenses were subject to auction, the
Commission notes that as a general matter, the number of winning
bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently
in service. Further, the Commission does not generally track subsequent
business size unless, in the context of assignments or transfers,
unjust enrichment issues are implicated. Additionally, the Commission
does not collect data on the number of employees for licensees
providing these services therefore, at this time we are not able to
estimate the number of licensees with active licenses that would
qualify as small under the SBA's small business size standard.
56. Advanced Wireless Services (AWS)--(1710-1755 MHz and 2110-2155
MHz bands (AWS-1); 1915-1920 MHz, 1995-2000 MHz, 2020-2025 MHz and
2175-2180 MHz bands (AWS-2); 2155-2175 MHz band (AWS-3); 2000-2020 MHz
and 2180-2200 MHz (AWS-4)). Spectrum is made available and licensed in
these bands for the provision of various wireless communications
services. Wireless Telecommunications Carriers (except Satellite) is
the closest industry with a SBA small business size standard applicable
to these services. The SBA small business size standard for this
industry classifies a business as small if it has 1,500 or fewer
employees. U.S. Census Bureau data for 2017 show that there were 2,893
firms that operated in this industry for the entire year. Of this
number, 2,837 firms employed fewer than 250 employees. Thus, under the
SBA size standard, the Commission estimates that a majority of
licensees in this industry can be considered small.
57. According to Commission data as December 2021, there were
approximately 4,472 active AWS licenses. The Commission's small
business size standards with respect to AWS involve eligibility for
bidding credits and installment payments in the auction of licenses for
these services. For the auction of AWS licenses, the Commission defined
a ``small business'' as an entity with average annual gross revenues
for the preceding three years not exceeding $40 million, and a ``very
small business'' as an entity with average annual gross revenues for
the preceding three years not exceeding $15 million. Pursuant to these
definitions, 57 winning bidders claiming status as small or very small
businesses won 215 of 1,087 licenses. In the most recent auction of AWS
licenses 15 of 37 bidders qualifying for status as small or very small
businesses won licenses.
58. In frequency bands where licenses were subject to auction, the
Commission notes that as a general matter, the number of winning
bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently
in service. Further, the Commission does not generally track subsequent
business size unless, in the context of assignments or transfers,
unjust enrichment issues are implicated. Additionally, since the
Commission does not collect data on the number of employees for
licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would
qualify as small under the SBA's small business size standard
59. 3650-3700 MHz Band. Wireless broadband service licensing in the
3650-3700 MHz band provides for nationwide, non-exclusive licensing of
terrestrial operations, utilizing contention-based technologies, in the
3650 MHz band (i.e., 3650-3700 MHz). Licensees are permitted to provide
services on a non-common carrier and/or on a common carrier basis.
Wireless broadband services in the 3650-3700 MHz band fall in the
Wireless Telecommunications Carriers (except Satellite) industry with a
SBA small business size standard that classifies a business as small if
it has 1,500 or fewer employees. U.S. Census Bureau data for 2017 show
that there were 2,893 firms that operated in this industry for the
entire year. Of this number, 2,837 firms employed fewer than 250
employees. Thus under the SBA size standard, the Commission estimates
that a majority of licensees in this industry can be considered small.
60. The Commission has not developed a small business size standard
applicable to 3650-3700 MHz band licensees. Based on the licenses that
have been granted, however, we estimate that the majority of licensees
in this service are small internet Access Service Providers (ISPs). As
of November 2021, Commission data shows that there were 902 active
licenses in the 3650-3700 MHz band. However, since the Commission does
not collect data on the number of employees for licensees providing
these services, at this time we are not able to estimate the number of
licensees with active licenses that would qualify as small under the
SBA's small business size standard.
61. Fixed Microwave Services. Fixed microwave services include
common carrier, private-operational fixed, and

[[Page 76957]]

broadcast auxiliary radio services. They also include the Upper
Microwave Flexible Use Service (UMFUS), Millimeter Wave Service (70/80/
90 GHz), Local Multipoint Distribution Service (LMDS), the Digital
Electronic Message Service (DEMS), 24 GHz Service, Multiple Address
Systems (MAS), and Multichannel Video Distribution and Data Service
(MVDDS), where in some bands licensees can choose between common
carrier and non-common carrier status. Wireless Telecommunications
Carriers (except Satellite) is the closest industry with a SBA small
business size standard applicable to these services. The SBA small size
standard for this industry classifies a business as small if it has
1,500 or fewer employees. U.S. Census Bureau data for 2017 show that
there were 2,893 firms that operated in this industry for the entire
year. Of this number, 2,837 firms employed fewer than 250 employees.
Thus under the SBA size standard, the Commission estimates that a
majority of fixed microwave service licensees can be considered small.
62. The Commission's small business size standards with respect to
fixed microwave services involve eligibility for bidding credits and
installment payments in the auction of licenses for the various
frequency bands included in fixed microwave services. When bidding
credits are adopted for the auction of licenses in fixed microwave
services frequency bands, such credits may be available to several
types of small businesses based average gross revenues (small, very
small and entrepreneur) pursuant to the competitive bidding rules
adopted in conjunction with the requirements for the auction and/or as
identified in Part 101 of the Commission's rules for the specific fixed
microwave services frequency bands.
63. In frequency bands where licenses were subject to auction, the
Commission notes that as a general matter, the number of winning
bidders that qualify as small businesses at the close of an auction
does not necessarily represent the number of small businesses currently
in service. Further, the Commission does not generally track subsequent
business size unless, in the context of assignments or transfers,
unjust enrichment issues are implicated. Additionally, since the
Commission does not collect data on the number of employees for
licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would
qualify as small under the SBA's small business size standard.
64. Broadband Radio Service and Educational Broadband Service.
Broadband Radio Service systems, previously referred to as Multipoint
Distribution Service (MDS) and Multichannel Multipoint Distribution
Service (MMDS) systems, and ``wireless cable,'' transmit video
programming to subscribers and provide two-way high speed data
operations using the microwave frequencies of the Broadband Radio
Service (BRS) and Educational Broadband Service (EBS) (previously
referred to as the Instructional Television Fixed Service (ITFS)).
Wireless cable operators that use spectrum in the BRS often
supplemented with leased channels from the EBS, provide a competitive
alternative to wired cable and other multichannel video programming
distributors. Wireless cable programming to subscribers resembles cable
television, but instead of coaxial cable, wireless cable uses microwave
channels.
65. In light of the use of wireless frequencies by BRS and EBS
services, the closest industry with a SBA small business size standard
applicable to these services is Wireless Telecommunications Carriers
(except Satellite). The SBA small business size standard for this
industry classifies a business as small if it has 1,500 or fewer
employees. U.S. Census Bureau data for 2017 show that there were 2,893
firms that operated in this industry for the entire year. Of this
number, 2,837 firms employed fewer than 250 employees. Thus under the
SBA size standard, the Commission estimates that a majority of
licensees in this industry can be considered small.
66. According to Commission data as December 2021, there were
approximately 5,869 active BRS and EBS licenses. The Commission's small
business size standards with respect to BRS involves eligibility for
bidding credits and installment payments in the auction of licenses for
these services. For the auction of BRS licenses, the Commission adopted
criteria for three groups of small businesses. A very small business is
an entity that, together with its affiliates and controlling interests,
has average annual gross revenues exceed $3 million and did not exceed
$15 million for the preceding three years, a small business is an
entity that, together with its affiliates and controlling interests,
has average gross revenues exceed $15 million and did not exceed $40
million for the preceding three years, and an entrepreneur is an entity
that, together with its affiliates and controlling interests, has
average gross revenues not exceeding $3 million for the preceding three
years. Of the ten winning bidders for BRS licenses, two bidders
claiming the small business status won 4 licenses, one bidder claiming
the very small business status won three licenses and two bidders
claiming entrepreneur status won six licenses. One of the winning
bidders claiming a small business status classification in the BRS
license auction has an active licenses as of December 2021.
67. The Commission's small business size standards for EBS define a
small business as an entity that, together with its affiliates, its
controlling interests and the affiliates of its controlling interests,
has average gross revenues that are not more than $55 million for the
preceding five (5) years, and a very small business is an entity that,
together with its affiliates, its controlling interests and the
affiliates of its controlling interests, has average gross revenues
that are not more than $20 million for the preceding five (5) years. In
frequency bands where licenses were subject to auction, the Commission
notes that as a general matter, the number of winning bidders that
qualify as small businesses at the close of an auction does not
necessarily represent the number of small businesses currently in
service. Further, the Commission does not generally track subsequent
business size unless, in the context of assignments or transfers,
unjust enrichment issues are implicated. Additionally, since the
Commission does not collect data on the number of employees for
licensees providing these services, at this time we are not able to
estimate the number of licensees with active licenses that would
qualify as small under the SBA's small business size standard.
Satellite Service Providers
68. Satellite Telecommunications. This industry comprises firms
``primarily engaged in providing telecommunications services to other
establishments in the telecommunications and broadcasting industries by
forwarding and receiving communications signals via a system of
satellites or reselling satellite telecommunications.'' Satellite
telecommunications service providers include satellite and earth
station operators. The SBA small business size standard for this
industry classifies a business with $38.5 million or less in annual
receipts as small. U.S. Census Bureau data for 2017 show that 275 firms
in this industry operated for the entire year. Of this number, 242
firms had revenue of less than $25 million. Additionally, based on
Commission data in the 2021 Universal Service

[[Page 76958]]

Monitoring Report, as of December 31, 2020, there were 71 providers
that reported they were engaged in the provision of satellite
telecommunications services. Of these providers, the Commission
estimates that approximately 48 providers have 1,500 or fewer
employees. Consequently using the SBA's small business size standard, a
little more than of these providers can be considered small entities.
69. All Other Telecommunications. This industry is comprised of
establishments primarily engaged in providing specialized
telecommunications services, such as satellite tracking, communications
telemetry, and radar station operation. This industry also includes
establishments primarily engaged in providing satellite terminal
stations and associated facilities connected with one or more
terrestrial systems and capable of transmitting telecommunications to,
and receiving telecommunications from, satellite systems. Providers of
internet services (e.g. dial-up ISPs) or voice over internet protocol
(VoIP) services, via client-supplied telecommunications connections are
also included in this industry. The SBA small business size standard
for this industry classifies firms with annual receipts of $35 million
or less as small. U.S. Census Bureau data for 2017 show that there were
1,079 firms in this industry that operated for the entire year. Of
those firms, 1,039 had revenue of less than $25 million. Based on this
data, the Commission estimates that the majority of ``All Other
Telecommunications'' firms can be considered small.
Cable Service Providers
70. Because section 706 of the Act requires us to monitor the
deployment of broadband using any technology, we anticipate that some
broadband service providers may not provide telephone service.
Accordingly, we describe below other types of firms that may provide
broadband services, including cable companies, MDS providers, and
utilities, among others.
71. Cable and Other Subscription Programming. The U.S. Census
Bureau defines this industry as establishments primarily engaged in
operating studios and facilities for the broadcasting of programs on a
subscription or fee basis. The broadcast programming is typically
narrowcast in nature (e.g., limited format, such as news, sports,
education, or youth-oriented). These establishments produce programming
in their own facilities or acquire programming from external sources.
The programming material is usually delivered to a third party, such as
cable systems or direct-to-home satellite systems, for transmission to
viewers. The SBA small business size standard for this industry
classifies firms with annual receipts less than $41.5 million as small.
Based on U.S. Census Bureau data for 2017, 378 firms operated in this
industry during that year. Of that number, 149 firms operated with
revenue of less than $25 million a year and 44 firms operated with
revenue of $25 million or more. Based on this data, the Commission
estimates that a majority of firms in this industry are small.
72. Cable Companies and Systems (Rate Regulation). The Commission
has developed its own small business size standard for the purpose of
cable rate regulation. Under the Commission's rules, a ``small cable
company'' is one serving 400,000 or fewer subscribers nationwide. Based
on industry data, there are about 420 cable companies in the U.S. Of
these, only seven have more than 400,000 subscribers. In addition,
under the Commission's rules, a ``small system'' is a cable system
serving 15,000 or fewer subscribers. Based on industry data, there are
about 4,139 cable systems (headends) in the U.S. Of these, about 639
have more than 15,000 subscribers. Accordingly, the Commission
estimates that the majority of cable companies and cable systems are
small.
73. Cable System Operators (Telecom Act Standard). The
Communications Act of 1934, as amended, contains a size standard for a
``small cable operator,'' which is ``a cable operator that, directly or
through an affiliate, serves in the aggregate fewer than one 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.'' For purposes of the Telecom Act Standard, the
Commission determined that a cable system operator that serves fewer
than 677,000 subscribers, either directly or through affiliates, will
meet the definition of a small cable operator based on the cable
subscriber count established in a 2001 Public Notice. Based on industry
data, only six cable system operators have more than 677,000
subscribers. Accordingly, the Commission estimates that the majority of
cable system operators are small under this size standard. We note
however, that the Commission neither requests nor collects information
on whether cable system operators are affiliated with entities whose
gross annual revenues exceed $250 million. Therefore, we are unable at
this time to estimate with greater precision the number of cable system
operators that would qualify as small cable operators under the
definition in the Communications Act.

Description of Projected Reporting, Recordkeeping, and Other Compliance
Requirements for Small Entities

74. The document will reduce reporting, recordkeeping, and other
compliance requirements on small entities. The document sunsets the
collection of broadband deployment data through Form 477. Fixed and
mobile broadband service providers who previously filed broadband
deployment data through Form 477 will no longer be required to do so.
Instead, providers will file their broadband availability data in the
BDC system. By sunsetting the collection of broadband deployment data
through Form 477 the document reduces the reporting requirements for
small providers and does not require small providers to hire
professionals to comply or impose any compliance costs. Providers will
be required to report broadband deployment data only in the BDC filing
system rather than in both the BDC system and through Form 477.
75. Although the documentsunsets the collection of broadband
deployment data, small and other providers are still required to submit
the subscription data required under Form 477. Additionally, because
our decision to sunset the collection of broadband deployment data
through Form 477 may impact other areas where the Commission currently
uses information from the Form 477 data collection we have directed the
Wireline Communications Bureau (WCB), the Wireless Telecommunications
Bureau (WTB), the International Bureau, and the Office of Economic
Analysis (OEA) to address matters related to the collection and use of
Form 477 deployment data for other uses and purposes within the
Commission.
76. Small and other mobile providers that participate in the Alaska
Plan will be informed by WTB and OEA how to submit coverage data after
the sunsetting of the Form 477 broadband deployment data collection,
including whether to use the BDC filing system for submission of data
currently submitted using the Form 477 filing system that are specific
to Alaska. WCB will provide small and other providers that participate
in either the Bringing Puerto Rico Together Fund or the Connect USVI
Fund instructions on how to submit coverage data that are specific to
Puerto Rico and the U.S. Virgin Islands to comply with the requirements
of those funding mechanisms.

[[Page 76959]]

Steps Taken To Minimize the Significant Economic Impact on Small
Entities, and Significant Alternatives Considered

77. The RFA requires an agency to provide, ``a description of the
steps the agency has taken to minimize the significant economic impact
on small entities. . .including a statement of the factual, policy, and
legal reasons for selecting the alternative adopted in the final rule
and why each one of the other significant alternatives to the rule
considered by the agency which affect the impact on small entities was
rejected.''
78. The Commission considered the comments in the record regarding
the sunset of the Form 477 broadband deployment data collection and is
mindful of the time and resources that small entities incur to file
broadband data with the Commission. The document concludes that
sunsetting the Form 477 deployment data collection at this time will
reduce burdens on small and other providers, by streamlining broadband
reporting requirements so that providers have to file broadband
deployment only in the BDC system rather than in both the BDC system
and through Form 477.
79. In reaching our decision, we specifically considered sunsetting
the collection of broadband deployment data through Form 477, (1) once
a new collection was implemented; (2) after a period of transition
following a Commission determination that there are sufficient
resources to implement a new collection and that the new broadband data
collection produced reliable data; (3) one year after the BDC
commenced; (4) after one reporting cycle of the BDC; and (5) after the
BDC requirements were in place. We also considered comments advocating
maintaining the Form 477 census-block broadband deployment data
collection going forward. The Commission rejected proposals and
alternative approaches suggested by commenters that would have required
a longer transition period during which broadband providers would have
been subject to the dual collection of deployment data. Limiting the
duration of the transition period will reduce the burden and economic
impact on small providers that would have been associated with
maintaining the dual reporting obligation for a longer period of time.

Report to Congress

80. The Commission will send a copy of the document, including this
FRFA, in a report to be sent to Congress pursuant to the Congressional
Review Act. In addition, the Commission will send a copy of the
document, including this FRFA, to the Chief Counsel for Advocacy of the
SBA. A copy of the document and Supplemental FRFA (or summaries
thereof) will also be published in the Federal Register.

IV. Ordering Clauses

81. Accordingly, it is ordered that, pursuant to sections 1-4, 201,
301, 303, 319, 332, 642, and 1702 of the Communications Act of 1934, as
amended, and section 706 of the Telecommunications Act of 1996, 47
U.S.C. 151-154, 201, 301, 303, 319, 332, 642, 646, 1302, 1702, this
Order is adopted.
82. It is further ordered that the Commission's Consumer &
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of the Order to Congress and the Government Accountability Office
pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
83. It is further ordered that the Commission's Consumer &
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Order, including the Final Regulatory Flexibility Analysis
to the Chief Counsel for Advocacy of the Small Business Administration.
84. It is further ordered that the Order shall be effective upon
publication in the Federal Register.

Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. 2022-27373 Filed 12-15-22; 8:45 am]
BILLING CODE 6712-01-P

</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>

View on FederalRegister.gov →Plain-text source

Indexed from Federal Register on December 16, 2022.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.