Rule2025-12240
Establishing the Digital Opportunity Data Collection; Modernizing the FCC Form 477 Data Program
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
July 1, 2025
Effective
July 1, 2025
Issuing agencies
Federal Communications Commission
Abstract
In this document, the Federal Communications Commission (Commission) eliminates the professional engineer certification requirement for the biannual Broadband Data Collection filings and instead allows the biannual filings to be certified by a qualified engineer that has relevant minimum experience and education.
Full Text
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<title>Federal Register, Volume 90 Issue 124 (Tuesday, July 1, 2025)</title>
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[Federal Register Volume 90, Number 124 (Tuesday, July 1, 2025)]
[Rules and Regulations]
[Pages 28032-28043]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12240]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[WC Docket Nos. 19-195 and 11-10; FCC 25-34; FR ID 301047]
Establishing the Digital Opportunity Data Collection; Modernizing
the FCC Form 477 Data Program
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document, the Federal Communications Commission
(Commission) eliminates the professional engineer certification
requirement for the biannual Broadband Data Collection filings and
instead allows the biannual filings to be certified by a qualified
engineer that has relevant minimum experience and education.
DATES: Effective July 1, 2025.
FOR FURTHER INFORMATION CONTACT: Jamile Kadre, Broadband Data Task
Force, by email at <a href="/cdn-cgi/l/email-protection#b8d2d9d5d1d4dd96d3d9dccaddf8dedbdb96dfd7ce"><span class="__cf_email__" data-cfemail="f993989490959cd792989d8b9cb99f9a9ad79e968f">[email protected]</span></a> or by phone at (202) 418-2245.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order, in WC Docket Nos. 19-195 and 11-10, FCC 25-34, adopted on
June 26, 2025, and released on June 26, 2025. The full text of this
document is available online at <a href="https://www.fcc.gov/document/fcc-takes-steps-streamline-broadband-data-collection">https://www.fcc.gov/document/fcc-takes-steps-streamline-broadband-data-collection</a>.
To request this document in accessible formats for people with
disabilities (e.g., Braille, large print, electronic files, audio
format) or to request reasonable accommodations (e.g., accessible
format documents, sign language interpreters, CART), send an email to
<a href="/cdn-cgi/l/email-protection#6f090c0c5a5f5b2f090c0c41080019"><span class="__cf_email__" data-cfemail="accacfcf999c98eccacfcf82cbc3da">[email protected]</span></a> or call the FCC's Consumer and Governmental Affairs
Bureau at (202) 418-0530.
Final Paperwork Reduction Act of 1995 Analysis
The rulemaking required under the Broadband DATA Act is exempt from
review by Office of Management and Budget (OMB) and from the
requirements of the Paperwork Reduction Act of 1995 (PRA), Public Law
104-13. As a result, the Report and Order will not be submitted to OMB
for review under section 3507(d) of the PRA.
Congressional Review Act
The Commission will send a copy of the Report and Order to Congress
and the Government Accountability Office pursuant to the Congressional
Review Act, see 5 U.S.C. 801(a)(1)(A).
Synopsis
In this Order, the Commission takes steps to alleviate unnecessary
regulatory burdens on broadband internet access service providers while
ensuring that the Commission continues to receive accurate, granular
data on broadband internet access service availability and quality of
service as part of the Broadband Data Collection (BDC). Accurate BDC
data enables the Commission, other federal agencies, state, local, and
Tribal governments, and other interested stakeholders to carefully
target resources to the locations where broadband services are needed
most.
The Broadband Deployment Accuracy and Technological Availability
Act (Broadband DATA Act) requires fixed broadband service providers to
report broadband availability on a location-by-location basis and
mobile wireless broadband service providers to report their coverage
areas using standardized propagation modeling parameters. Consistent
with the Broadband DATA Act's requirement that submissions include a
certification from a corporate officer of the provider that the data
are true and correct, the Commission requires providers to have a
corporate officer and either a corporate engineering officer or
certified professional engineer (PE) certify their filings.
Today, the Commission takes an important step to alleviate the
regulatory burden that a professional engineer certify a provider's BDC
biannual filings. Specifically, in response to concerns about the
unavailability of professional engineers and the unnecessary costs and
other burdens the requirement places on filers, this Fifth Report and
Order eliminates the professional engineer certification requirement
and replaces it with a requirement that biannual filings be certified
by a qualified engineer (as defined herein).
The Broadband DATA Act requires internet service providers to
``include in each [BDC] submission a certification from a corporate
officer of the provider that the officer has examined the information
contained in the submission and that, to the best of the officer's
actual knowledge, information, and belief, all statements of fact
contained in the submission are true and correct.'' In addition to the
corporate officer certification, and in an effort to adopt appropriate
measures to ensure that providers engage in sufficient analysis of
their data and submit accurate information to the BDC, the Commission
also adopted a requirement that providers submit certifications to the
accuracy of their biannual submissions by a certified professional
engineer or a corporate engineering officer. For purposes of this
requirement, a ``certified professional engineer'' is an engineer
possessing a professional license by virtue of completing or passing
multiple educational and testing requirements so as to earn a license
from a state licensure board.
For every BDC biannual filing period to date, WCB, OEA, and WTB
have waived the professional engineering certification requirement. In
May 2022, before the first BDC filing window opened, the Competitive
Carriers Association (CCA) filed a Petition for Declaratory Ruling or
Limited Waiver, requesting that the Commission clarify that a BDC
filing may be certified by either a professional engineer or an
otherwise-qualified engineer who does not hold a professional license.
In its Petition, CCA noted that ``[t]he [Radio Frequency (RF)]
engineering community is characterized by a scarcity of licensed
[professional engineers (PEs)]'' because ``[s]tate professional
licensing boards issue PE licenses based on the fulfillment of state-
specific education, examination, and experience requirements [and]
states have generally not required PE licensure for RF engineers.'' CCA
continued that ``[t]he experience and expertise developed by RF
engineers through their work provides comprehensive skills relevant to
broadband deployment [and] . . . provides skills comparable to, and
perhaps more relevant than, general licensure through the PE . . . exam
process.''
[[Page 28033]]
Subsequently, WCB, OEA, and WTB issued a Declaratory Ruling and
Limited Waiver granting CCA's request for the first three filing cycles
of the BDC. In the Declaratory Ruling, the Bureaus and Office clarified
that when a fixed or mobile provider submits a certification from a
corporate engineering officer, such corporate engineering officer does
not need to be a certified professional engineer. In the Limited
Waiver, the Bureaus and Office waived the requirement that a fixed or
mobile provider submit a certification from a ``certified professional
engineer,'' allowing instead the submission of a certification
completed by an otherwise-qualified engineer. WCB, OEA, and WTB found
that ``the lack of certified professional engineers specializing in RF
engineering and broadband network design constitutes `special
circumstances' that warrant a deviation from the general rule that
certified professional engineers must certify the accuracy of
providers' biannual BDC broadband data submissions.'' The Limited
Waiver specified that an otherwise-qualified engineer must meet certain
minimum qualifications in lieu of state professional engineering
licensure in order to certify a BDC filing:
<bullet> A bachelor's or postgraduate degree in electrical
engineering, electronic technology, or another similar technical
discipline, and at least seven years of relevant experience in
broadband network design and/or performance; or
<bullet> Specialized training relevant to broadband network
engineering and design, deployment, and/or performance, and at least
ten years of relevant experience in broadband network engineering,
design, and/or performance.
In August 2023, CCA and USTelecom-The Broadband Association sought
an extension of the Limited Waiver, arguing that circumstances had not
changed for the industry in the year since the 2022 BDC PE Order was
issued. In November 2023, WCB, OEA, and WTB granted the request and
extended the Limited Waiver for another three filing cycles (i.e., data
as of December 31, 2023, June 30, 2024, and December 31, 2024), subject
to certain conditions. The conditions outlined in the extension are
that ``any provider availing itself of this waiver must: (1) have its
BDC submissions certified by an engineering professional with the
qualifications specified in the [2022 BDC PE Order]; (2) preserve, for
the applicable `as-of' filing date(s), certain categories of underlying
network information for each submission filed under the waiver; and (3)
upon request, expeditiously provide this network information to the
Commission.''
In July 2024, the Commission sought comment on whether it should
eliminate the professional engineering certification requirement and
proposed that all providers be required to retain their infrastructure
data in support of their biannual submissions upon request as part of
the Commission's efforts to validate availability data. The Commission
proposed to permanently eliminate the requirement under Sec. 1.7004(d)
that an engineering certification, to the extent not submitted by a
corporate engineering officer, must be submitted by a certified
professional engineer. Under its proposal, the Commission would amend
the rule to state that all providers must submit a certification to the
accuracy of their submissions by a ``qualified engineer,'' consistent
with the engineering qualifications that WCB, OEA, and WTB adopted in
the 2022 BDC PE Order and the PE Waiver Extension Order. Additionally,
the Commission proposed to further modify the rule to clarify that a
certifying engineer does not necessarily need to be a full-time
employee of the broadband service provider but instead could be an
independent contractor or third-party consultant. The Commission noted
that, in light of the other mechanisms available to the Commission,
such as system validations and the existing corporate officer
certification, a certification by a certified professional engineer was
not necessary to ensure the submission of high-quality data as part of
the BDC.
The Commission adopts the proposal to amend Sec. 1.7004(d) to
eliminate the requirement that an engineering certification, to the
extent not submitted by a corporate engineering officer, must be
submitted by a certified professional engineer and instead require
certification by a ``qualified engineer'' as outlined in the waiver
orders issued by the Bureaus and Office. Specifically, the Commission
will allow an engineer to certify BDC biannual data filings if the
engineer is: (i) a corporate officer possessing a Bachelor of Science
(B.S.) degree in engineering and who has direct knowledge of and
responsibility for the carrier's network design and construction; (ii)
an engineer possessing a bachelor's or post-graduate degree in
electrical engineering, electronic engineering, or another similar
technical discipline, and at least seven years of relevant experience
in broadband network design and/or performance; or (iii) an employee or
agent with specialized training relevant to broadband network
engineering and design, deployment, and/or performance, and at least 10
years of relevant experience in broadband network engineering, design,
and/or performance. The Commission continues to believe that it is
necessary to retain an engineering certification requirement because
the Broadband DATA Act requires the Commission to collect accurate
broadband data. As the Commission previously noted, providers should be
engaging in the analysis required to confirm that their data are
accurate, so certifying that this analysis has been conducted should
not unduly burden providers.
The Commission finds that the qualified engineer standard outlined
above, in combination with the Commission's verification and audit
authority and challenges from the public, provides the Commission with
the necessary tools to ensure that BDC data are accurate and timely.
The standard the Commission adopts ensures that a capable and qualified
engineer will review and certify the accuracy of a provider's
submission and that filers have engaged in the analysis necessary to
meet Congress's objective of developing more accurate data, consistent
with the Commission's reasons for adopting the engineering
certification in the Third Report and Order. To that end, the
Commission agrees with the Bureaus and Office's rationale for adopting
the specific qualifications in the 2022 BDC PE Order, and find that the
degree requirements for corporate engineering officers and certifying
engineers described in (i) and (ii) above, along with the years of
experience required for the certifying engineers described in (ii) and
(iii) above and the requirement that the certifying engineer ``has
direct knowledge of, or responsibility for, the generation of the
provider's Broadband Data Collection filing'' creates a rigorous
certification standard that achieves the same goals as the professional
engineering certification requirement. The Commission agrees with
commenters that this standard has been tested under the prior two
waiver orders, and note the record in this proceeding and the two
waivers supports our view that otherwise qualified engineers are highly
expert and that their review and certification of BDC filings has been
no less stringent than under the professional engineering certification
requirement because otherwise-qualified engineers are required to have
a high level of technical expertise, practical experience, and intimate
knowledge of providers' networks. The amended
[[Page 28034]]
standard provides relief for some providers from the burden of having a
professional engineer certify filings, without sacrificing high-quality
expert review and certification of BDC filings or the accuracy of
submitted data.
As discussed in the 2022 BDC PE Order, the minimum qualifications
the Commission adopts create a more efficient process while ensuring
that qualified engineers review BDC submissions, which will help
providers to submit their filings on a timely basis because they will
not need to identify and retain a certified professional engineer to
analyze their biannual filings. In 2022 BDC PE Waiver Order, the
Bureaus and Office examined the reported burdens associated with the
professional engineering certification requirement and found that
special circumstances existed to warrant a limited waiver of Sec.
1.7004(d) based on the insufficient number of available certified
professional engineers with relevant expertise, and again in the PE
Waiver Extension Order found that ``[t]he . . . lack of PEs to certify
BDC filings threatens to undermine the goal of collecting and
developing accurate broadband availability data.'' Industry commenters
in this proceeding overwhelmingly note that there continues to be a
shortage of certified professional engineers with expertise in RF
engineering and broadband network design, and NRECA and WISPA
particularly emphasize the significant challenges that small ISPs face
in meeting any certified professional engineering requirement. The
Commission finds the reported burdens associated with the professional
engineering certification requirement--namely the reported ongoing
shortage of professional engineers with relevant experience in the
fields of RF engineering and broadband network design--to be
compelling. The standard the Commission adopts both promotes efficiency
and furthers the goals of the BDC by offering providers who may
experience difficulty finding a professional engineer to certify their
filings the flexibility to certify using a different, yet still highly
trained and experienced, engineer.
While some commenters support retaining the professional
engineering certification requirement, the Commission does not find
these arguments persuasive. ACE--Association of Communication Engineers
(ACE) claims that there is not, in fact, a shortage of professional
engineers. However, neither ACE nor any other commenter provides
evidence that there are sufficient professional engineers who also have
the relevant experience in the fields of RF engineering and broadband
network design available to review and certify the over 2,500 BDC
filings that are submitted every six months from thousands of distinct
providers. As discussed, the waiver standard the Commission adopts
today ensures that a highly trained and experienced engineer will
continue to certify providers' BDC filings. Given this fact, and in
light of the conflicting evidence in the record suggesting that there
continues to be a professional engineer shortage, the Commission finds
that the need to increase efficiency and reduce unnecessary burdens in
the BDC processes outweighs the need for an engineer to hold a
professional license in order to certify BDC filings. Some commenters
are also concerned that without the professional engineering
certification requirement, there will not be sufficient accountability
for providers filing data, or that the data would be less accurate
because it would lack review by a professional engineer. The Commission
is not persuaded by these arguments because the Commission has always,
and will continue to, require certification by a corporate officer (as
mandated by the Broadband DATA Act) as well as a qualified engineer.
The qualifications outlined above for the engineering certification
require expertise and experience with broadband network design and
information that is relevant to the BDC, and the certification
requirements, when taken together, go above and beyond to ensure both
accountability and accuracy for BDC submissions.
Some commenters suggest that if a professional engineering
certification is unduly burdensome for an individual provider, it
should file a waiver request as a remedy, rather than modifying the
rule for all providers. However, reviewing and granting individual
waiver requests for potentially hundreds of providers for each BDC
biannual filing period would be administratively burdensome both for
the Commission and the industry. Furthermore, relying on individual
waivers would cause regulatory uncertainty and inconsistencies amongst
data filed by different providers that could cause confusion to users
of the National Broadband Map. The Commission finds that clarity and
consistency amongst provider-reported data is an important
consideration that warrants implementing clear and consistent
certification requirements to the extent possible. Therefore, the
Commission permanently eliminates the professional engineering
certification requirement.
Consistent with the Commission's proposal in the Fourth Further
Notice, the Commission further modifies the rule to clarify that a
certifying engineer does not necessarily need to be a full-time
employee of the broadband service provider, but instead could be an
independent contractor or third-party consultant. ACE--Association of
Communications Engineers comments that if the Commission does not
require a PE to certify BDC filings, then ``the one certifying the
[National Broadband Map] must be an employee/officer of the company''
because it would provide a legal tie to the service provider. The
Commission notes that each BDC filing must still include ``a
certification signed by a corporate officer of the provider that the
officer has examined the information contained in the submission and
that, to the best of the officer's actual knowledge, information, and
belief, all statements of fact contained in the submission are true and
correct.'' The Commission also maintains the requirement that the
certifying engineer ``has direct knowledge of, or responsibility for,
the generation of the provider's Broadband Data Collection filing.''
The Commission finds that both of these requirements ensure a legal
nexus between the service provider and those certifying the filings. By
clarifying that broadband service providers may utilize the resources
of consulting engineers, the Commission ensures that smaller providers
who may not have in-house engineering expertise are able to comply with
the engineering certification requirements of the BDC.
In their comments on the Fourth Further Notice, T-Mobile and CTIA
argue that elimination of the professional engineering certification
requirement should not be used as a justification for a new data-
retention requirement. The Commission agrees. However, the Commission
reminds providers that it will continue to use the other tools at its
disposal to ensure the accuracy of BDC data. This includes its ongoing
efforts to verify and audit BDC data, which may involve requesting from
providers, where warranted, supporting infrastructure and/or on-the-
ground test data from a filer as part of those efforts.
The Commission finds that its amendment to Sec. 1.7004(d) relieves
a restriction (i.e., it eliminates the professional engineer
certification requirement), and therefore the amended rule will be
effective upon publication of this Order in the Federal Register,
rather than being made effective 30 days after publication. As
[[Page 28035]]
an independent basis for this effective date, the Commission finds
there is ``good cause'' to make the rules adopted in this Order
effective upon publication in the Federal Register in order to provide
the maximum amount of notice of this rule change to providers preparing
to submit BDC data during the upcoming filing window. Providing a 30-
day period after Federal Register publication before this Order becomes
effective as normally required by 5 U.S.C. 553(d) would not allow
sufficient time for providers to be made aware of the rule change
before the opening of the next BDC filing window for data as of June
30, 2025, which typically opens on July 1, or the next business day
thereafter. Providing earlier notice of the elimination of the
professional engineer certification requirement would mitigate the risk
of providers taking on the unnecessary costs and other burdens this
rule change will relieve as they prepare for the next BDC filing
window.
Final Regulatory Flexibility Act
As required by the Regulatory Flexibility Act of 1980, as amended
(RFA), the Federal Communications Commission (Commission) incorporated
an Initial Regulatory Flexibility Analysis (IRFA) in the Establishing
the Digital Opportunity Data Collection; Modernizing the FCC Form 477
Data Program, Fourth Report and Order and Fourth Further Notice of
Proposed Rulemaking released in July 2024. The Commission sought
written public comment on the proposals in the Fourth Notice, including
comment on the IRFA. No comments were filed addressing the IRFA. This
Final Regulatory Flexibility Analysis (FRFA) conforms to the RFA and it
(or summaries thereof) will be published in the Federal Register.
Need for, and Objectives of, the Rules
In the Fifth Report and Order, the Commission targeted changes to
further its objective of significantly reducing unnecessary regulatory
burdens on broadband internet access service providers, thereby
providing relief to small entities that typically lack both the capital
and human resources needed to comply without great difficulty. The
rules adopted in this proceeding provide changes designed to improve
the processes for filers and further ensure that the Commission
continues to receive high-quality data through our data collection
efforts. In addition, the Commission is implementing changes focused on
addressing its long-standing objective of working towards closing the
digital divide by improving the processes for filers, some of whom
consist of small entities. To achieve these objectives, the Fifth
Report and Order removes the requirement that a provider of broadband
internet access service submit that their biannual Broadband Data
Collection (BDC) data has been certified by a certified professional
engineer (PE), replacing it with a requirement that the data be
certified by a qualified engineer. This change therefore eases
compliance burdens.
Summary of Significant Issues Raised by Public Comments in Response to
the IRFA
No comments were filed addressing the impact of the proposed rules
on small entities. However, commenters have previously expressed there
remains an insufficient supply of certified PEs, and that few companies
can afford to employ a PE. As a result, the Commission expects the
Fifth Report and Order's adoption of the qualified engineer standard
will have a positive impact on small entities, as their compliance with
that standard will be easier and, given their limited resources, more
cost-effective.
Response to Comments by the Chief Counsel for Advocacy of the Small
Business Administration
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 provide a detailed statement of any change made to the proposed
rules as a result of those comments. The Chief Counsel did not file any
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
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 under the Small
Business Act. 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.
Small Businesses, Small Organizations, Small Governmental
Jurisdictions. Our actions, over time, may affect small entities that
are not easily categorized at present. The Commission therefore
describes, 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 34.75 million businesses.
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 2022, there were
approximately 530,109 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.
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 2022 Census of Governments indicate there were
90,837 local governmental jurisdictions consisting of general purpose
governments and special purpose governments in the United States. Of
this number, there were 36,845 general purpose governments (county,
municipal, and town or township) with populations of less than 50,000
and 11,879 special purpose governments (independent school districts)
with enrollment populations of less than 50,000. Accordingly, based on
the 2022 U.S. Census of Governments data, the Commission estimates that
at least 48,724 entities fall into the category of ``small governmental
jurisdictions.''
Broadband Internet Access Service Providers
The broadband internet access service provider industry has changed
since the definition was introduced in 2007. The data cited below may
therefore include entities that no longer provide broadband internet
access service and may exclude entities that now provide such service.
To ensure that this FRFA
[[Page 28036]]
describes the universe of small entities that our action might affect,
the Commission discusses in turn several different types of entities
that might be providing broadband internet access service. The
Commission notes that, although the Commission has no specific
information on the number of small entities that provide broadband
internet access service over unlicensed spectrum, the Commission
included these entities in our Initial Regulatory Flexibility Analysis.
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.
Additionally, according to Commission data on internet access
services as of June 30, 2019, nationwide there were approximately 2,747
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 the Commission is not able to estimate the number of
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 2022 Communications
Marketplace Report, the Commission believes that the majority of
wireline internet access service providers can be considered small
entities.
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 $40 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.
Wireline Providers
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 an 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 2022 Universal Service
Monitoring Report, as of December 31, 2021, there were 4,590 providers
that reported they were fixed local exchange service providers. Of
these providers, the Commission estimates that 4,146 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.
Incumbent Local Exchange Carriers (Incumbent LECs). Neither the
Commission nor the SBA has developed a small business size standard
specifically for incumbent local exchange carriers. Wired
Telecommunications Carriers is the closest industry with an 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 2022 Universal Service
Monitoring Report, as of December 31, 2021, there were 1,212 providers
that reported they were incumbent local exchange service providers. Of
these providers, the Commission estimates that 916 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.
Competitive Local Exchange Carriers (CLECs). 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 2022 Universal
Service Monitoring Report, as of December 31, 2021, there were 3,378
providers that reported they were competitive local service providers.
Of these providers, the Commission estimates that 3,230 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.
Interexchange Carriers (IXCs). Neither the Commission nor the SBA
has 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
2022 Universal Service Monitoring Report, as of December 31, 2021,
there were 127 providers that reported they were engaged in the
provision of interexchange services. Of these providers, the Commission
estimates that 109 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.
[[Page 28037]]
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 2022 Universal
Service Monitoring Report, as of December 31, 2021, there were 20
providers that reported they were engaged in the provision of operator
services. Of these providers, the Commission estimates that all 20
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.
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
2022 Universal Service Monitoring Report, as of December 31, 2021,
there were 90 providers that reported they were engaged in the
provision of other toll services. Of these providers, the Commission
estimates that 87 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.
Wireless Providers--Fixed and Mobile
The broadband internet access service provider category covered by
these new rules may cover multiple wireless firms and categories of
regulated wireless services. Thus, to the extent the wireless services
listed below are used by wireless firms for broadband internet access
service, the actions may have an impact on those small businesses as
set forth above and further below. In addition, for those services
subject to auctions, the Commission notes that, as a general matter,
the number of winning bidders that claim to qualify as small businesses
at the close of an auction does not necessarily represent the number of
small businesses currently in service. Also, the Commission does not
generally track subsequent business size unless, in the context of
assignments and transfers or reportable eligibility events, unjust
enrichment issues are implicated.
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.
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 2022 Universal Service Monitoring Report, as of
December 31, 2021, there were 4,590 providers that reported they were
engaged in the provision of fixed local services. Of these providers,
the Commission estimates that 4,146 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.
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 an 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.
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.
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 the Commission is not
able to estimate the number of licensees with active licenses that
would qualify as small under the SBA's small business size standard.
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 an 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
[[Page 28038]]
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.
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.
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 the Commission is not
able to estimate the number of licensees with active licenses that
would qualify as small under the SBA's small business size standard
Wireless Telephony. Wireless telephony includes cellular, personal
communications services, and specialized mobile radio telephony
carriers. The closest applicable industry with an 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 2022 Universal Service Monitoring Report, as of December
31, 2021, there were 331 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 255 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.
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.
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.
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 the Commission is not able to
estimate the number of licensees with active licenses that would
qualify as small under the SBA's small business size standard.
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
2022 Universal Service Monitoring Report, as of December 31, 2021,
there were 95 providers that reported they were of SMR (dispatch)
providers. Of this number, the Commission estimates that all 95
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.
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 the Commission is not able to estimate the number of
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.
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
[[Page 28039]]
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.
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.
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 the Commission is not
able to estimate the number of licensees with active licenses that
would qualify as small under the SBA's small business size standard.
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.
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.
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 the Commission is not
able to estimate the number of licensees with active licenses that
would qualify as small under the SBA's small business size standard.
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.
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.
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
[[Page 28040]]
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 the Commission is not
able to estimate the number of licensees with active licenses that
would qualify as small under the SBA's small business size standard.
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.
The closest industry with an 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.
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.
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 the Commission is not
able to estimate the number of licensees with active licenses that
would qualify as small under the SBA's small business size standard.
Advanced Wireless Services (AWS)--(1,710-1,755 MHz and 2,110-2,155
MHz bands (AWS-1); 1,915-1,920 MHz, 1,995-2,000 MHz, 2,020-2,025 MHz
and 2,175-2,180 MHz bands (AWS-2); 2,155-2,175 MHz band (AWS-3); 2,000-
2,020 MHz and 2,180-2,200 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.
According to Commission data as of 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.
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 the Commission is not
able to estimate the number of licensees with active licenses that
would qualify as small under the SBA's small business size standard.
3,650-3,700 MHz band. Wireless broadband service licensing in the
3,650-3,700 MHz band provides for nationwide, non-exclusive licensing
of terrestrial operations, utilizing contention-based technologies, in
the 3,650 MHz band (i.e., 3,650-3,700 MHz). Licensees are permitted to
provide services on a non-common carrier and/or on a common carrier
basis. Wireless broadband services in the 3,650-3,700 MHz band fall in
the Wireless Telecommunications Carriers (except Satellite) industry
with an 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.
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, the Commission estimates 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 3,650-3,700 MHz band. However, since
the Commission does not collect data on the number of employees for
licensees providing these services, at this time the Commission is not
able to estimate the number of licensees with active licenses that
would qualify as small under the SBA's small business size standard.
Fixed Microwave Services. Fixed microwave services include common
carrier, private-operational fixed, and
[[Page 28041]]
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.
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.
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 the Commission is not
able to estimate the number of licensees with active licenses that
would qualify as small under the SBA's small business size standard.
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.
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.
According to Commission data as of 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.
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 the Commission is 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
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 $44 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. Consequently, using the
SBA's small business size standard most satellite
[[Page 28042]]
telecommunications service providers can be considered small entities.
The Commission notes however, that the SBA's revenue small business
size standard is applicable to a broad scope of satellite
telecommunications providers included in the U.S. Census Bureau's
Satellite Telecommunications industry definition. Additionally, the
Commission neither requests nor collects annual revenue information
from satellite telecommunications providers, and is therefore unable to
more accurately estimate the number of satellite telecommunications
providers that would be classified as a small business under the SBA
size standard.
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 $40 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.
Because section 706 of the Act requires us to monitor the
deployment of broadband using any technology, the Commission
anticipates that some broadband service providers may not provide
telephone service. Accordingly, the Commission describes below other
types of firms that may provide broadband services, including cable
companies, MDS providers, and utilities, among others.
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 $47 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.
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.
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 498,000 subscribers, either directly or through affiliates, will
meet the definition of a small cable operator. Based on industry data,
only six cable system operators have more than 498,000 subscribers.
Accordingly, the Commission estimates that the majority of cable system
operators are small under this size standard. The Commission notes,
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, the Commission is
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.
All Other Telecommunications
Electric Power Generators, Transmitters, and Distributors. The U.S.
Census Bureau defines the utilities sector industry as comprised of
``establishments, primarily engaged in generating, transmitting, and/or
distributing electric power. Establishments in this industry group may
perform one or more of the following activities: (1) operate generation
facilities that produce electric energy; (2) operate transmission
systems that convey the electricity from the generation facility to the
distribution system; and (3) operate distribution systems that convey
electric power received from the generation facility or the
transmission system to the final consumer.'' This industry group is
categorized based on fuel source and includes Hydroelectric Power
Generation, Fossil Fuel Electric Power Generation, Nuclear Electric
Power Generation, Solar Electric Power Generation, Wind Electric Power
Generation, Geothermal Electric Power Generation, Biomass Electric
Power Generation, Other Electric Power Generation, Electric Bulk Power
Transmission and Control and Electric Power Distribution.
The SBA has established a small business size standard for each of
these groups based on the number of employees which ranges from having
fewer than 250 employees to having fewer than 1,000 employees. U.S.
Census Bureau data for 2017 indicate that for the Electric Power
Generation, Transmission and Distribution industry there were 1,693
firms that operated in this industry for the entire year. Of this
number, 1,552 firms had less than 250 employees. Based on this data and
the associated SBA size standards, the majority of firms in this
industry can be considered small entities.
Description of Economic Impact and Projected Reporting, Recordkeeping
and Other Compliance Requirements for Small Entities
The RFA directs agencies to provide a description of the projected
reporting, recordkeeping and other compliance requirements of the
proposed rule, including an estimate of the classes of small entities
which will be subject to the requirement and the type of professional
skills necessary for preparation of the report or record.
[[Page 28043]]
The Commission believes the adopted rules will provide regulatory
relief to small entities by reducing their overall compliance costs.
The Fifth Report and Order eliminates the requirement under Sec.
1.7004(d) that an engineering certification, to the extent not
submitted by a corporate engineering officer, must be submitted by a
licensed PE. Instead, the Commission amends Sec. 1.7004(d) to require
that providers submit certifications by a ``qualified engineer,'' as
defined by the engineering qualifications the Broadband Data Task Force
(BDTF) adopted in previous orders. This certifying engineer does not
need to be a full time employee, but is required to have direct
knowledge and familiarity with the BDC filing.
The Commission's decision to adopt rules eliminating the
professional engineering certification requirement reflects our belief
that the potential costs and burdens of the licensed PE requirement
outweigh its potential benefits. At this time, although there is not
available data on the record to quantify the cost of compliance with
the requirements in the Fifth Report and Order, the Commission believes
the modifications to the BDC rules eliminate a burden on providers and
will maintain the Commission's ability to create accurate broadband
coverage maps.
Discussion of Steps Taken To Minimize the Significant Economic Impact
on Small Entities, and Significant Alternatives Considered
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.''
The Commission's actions in the Fifth Report and Order take steps
to minimize, where practicable, significant economic impact on small
entities and have also considered significant alternatives in reaching
its conclusions in the adopted rules. For example, the adopted rules
eliminate the previously required licensed professional engineering
certification and instead require certification by a ``qualified
engineer,'' as defined in previous BDC orders, which will save some
small entities from having to pay a professional engineer to certify
their filings. The Commission considered proposals to utilize waiver
requests to address economic burdens associated with compliance;
however, the process of reviewing and granting a great number of
individual requests would in fact cause greater administrative burdens
for the Commission and for small and other entities in the industry.
In addition, the Fifth Report and Order also clarifies that
broadband service providers may utilize the resources of consulting
engineers, thereby ensuring that that smaller providers who may not
have in-house engineering expertise are able to comply with the
engineering certification requirements of the BDC. Alternatively, the
Commission considered the impact of requiring the consulting engineer
be a full-time employee of the broadband service provider, and the
Commission determined the benefits of our proposed approach would
provide a substantial benefit to small entities.
Report to Congress
The Commission will send a copy of the Fifth Report and Order,
including this FRFA, in a report to Congress pursuant to the
Congressional Review Act. In addition, the Commission will send a copy
of the Fifth Report and Order, including this FRFA, to the Chief
Counsel for Advocacy of the SBA and will publish a copy of the Fifth
Report and Order and FRFA (or summaries thereof) in the Federal
Register.
Ordering Clauses
It is ordered that, pursuant to sections 1-4, 201, 254, 301, 303,
332, and 801-806 of the Communications Act of 1934, as amended, 47
U.S.C. 151-154, 201, 254, 301, 303, 332, and 641-646, this Fifth Report
and Order is adopted.
List of Subjects in 47 CFR Part 1
Administrative practice and procedure, Broadband, Reporting and
recordkeeping requirements, Telecommunications.
Federal Communications Commission.
Katura Jackson,
Federal Register Liaison Officer.
Final Rules
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 1 as follows:
PART 1--PRACTICE AND PROCEDURE
0
1. The authority citation for part 1 continues to read as follows:
Authority: 47 U.S.C. chs. 2, 5, 9, 13; 28 U.S.C. 2461 note; 47
U.S.C. 1754, unless otherwise noted.
Subpart V--Commission Collection of Advanced Telecommunications
Capability Data and Local Exchange Competition Data
0
2. Amend Sec. 1.7004 by revising and republishing paragraph (d) to
read as follows:
Sec. 1.7004 Scope, content, and frequency of Broadband Data
Collection filings.
* * * * *
(d) Providers shall include in each Broadband Data Collection
filing a certification signed by a corporate officer of the provider
that the officer has examined the information contained in the
submission and that, to the best of the officer's actual knowledge,
information, and belief, all statements of fact contained in the
submission are true and correct. All providers also shall submit a
certification of the accuracy of its submissions by a qualified
engineer. The engineering certification shall state that the qualified
engineer has direct knowledge of, or responsibility for, the generation
of the provider's Broadband Data Collection filing. The qualified
engineer shall also certify that he or she has examined the information
contained in the submission and that, to the best of the engineer's
actual knowledge, information, and belief, all statements of fact
contained in the submission are true and correct, and in accordance
with the service provider's ordinary course of network design and
engineering. If a corporate officer is also an engineer and has the
requisite knowledge required under the Broadband DATA Act, a provider
may submit a single certification that fulfills both requirements. A
``qualified engineer,'' for purposes of this certification, shall be an
engineer who is:
(1) A corporate officer possessing a Bachelor of Science in
engineering degree and who has direct knowledge of and responsibility
for the carrier's network design and construction;
(2) An engineer possessing a bachelor's or postgraduate degree in
electrical engineering, electronic technology, or another similar
technical discipline, and at least seven years of relevant experience
in broadband network design and/or performance; or
(3) An employee or agent with specialized training relevant to
broadband network engineering and design, deployment, and/or
performance, and at least 10 years of relevant experience in broadband
network engineering, design, and/or performance.
[FR Doc. 2025-12240 Filed 6-30-25; 8:45 am]
BILLING CODE 6712-01-P
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