99-1141. Small Business Size Standards

[Federal Register Volume 64, Number 11 (Tuesday, January 19, 1999)]
[Notices]
[Pages 2901-2902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1141]


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FEDERAL COMMUNICATIONS COMMISSION

[PR Docket Nos. 93-61 and GN 96-228; FCC 99-2]


Small Business Size Standards

AGENCY: Federal Communications Commission.

ACTION: Notice; seeking comment.

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SUMMARY: In this Notice, the Commission is seeking further comment on 
the small business size standard definitions adopted for the auction of 
Location Monitoring Service and Wireless Communication Service 
spectrum.

DATES: Comment deadline: January 20, 1999.

ADDRESSES: To file formally, parties must submit an original and four 
copies to the Office of the Secretary, Federal Communications 
Commission, 445 Twelfth Street, SW., TW-A325, Washington, D.C. 20554. 
In addition, parties must submit one copy to Amy Zoslov, Chief, 
Auctions and Industry Analysis Division, Wireless Telecommunications 
Bureau, Federal Communications Commission, Room 5202, 2025 M Street 
N.W., Washington, D.C. 20554.

FOR FURTHER INFORMATION CONTACT: Ken Burnley or Arthur Lechtman, 
Auctions and Industry Analysis Division, Wireless Telecommunications 
Bureau, at [phone].

SUPPLEMENTARY INFORMATION: This Public Notice was released on January 
13, 1999, and is available in its entirety, including all attachments, 
for inspection and copying during normal business hours in the Wireless 
Telecommunications Bureau's Public Reference Room, Room 5608, 2025 M 
Street, N.W., Washington, D.C., and also may be purchased from the 
Commission's copy contractor, International Transcription Services, 
[phone], fax [phone], 1231 20th Street, N.W., Washington, 
D.C. 20036. It is also available on the Commission's website at http://
www.fcc.gov.

Synopsis of Public Notice

    In accordance with a recent ruling by the Small Business 
Administration (SBA), the Commission is seeking further comment on 
small business size standards adopted for the auction of Location and 
Monitoring Service (LMS) and Wireless Communications Service (WCS) 
spectrum. This ruling is detailed in the attached letter from the 
Administrator of the Small Business Administration. The Commission 
seeks comment on these issues for purposes of obtaining SBA approval of 
the LMS and WCS size standards. This action will not affect the outcome 
of the WCS auction or the payment obligations of WCS licensees.
    The LMS auction is scheduled to begin on February 23, 1999. In our 
rules for that auction, the Commission adopted small business size 
standards and associated bidding credits for LMS to remove entry 
barriers and ensure the participation of small businesses in the LMS 
auction and in the provision of service. The Commission sought comment, 
in general, on small business size standards for LMS, and one party 
commented on this issue. This commenter, Comtrak, recommended that the 
Commission adopt two small business categories in the LMS auction: (1) 
a ``small business'' category, for businesses with average gross 
revenues not to exceed $10 million; and (2) a ``very small business'' 
category, for businesses with average gross revenues not to exceed $3 
million. Comtrak also recommended that the Commission rely solely on 
gross revenues, and not the number of employees, for the purpose of 
determining an entity's eligibility for small business incentives, as 
it has done in previous auctions. None of the commenters addressed 
capital requirements supporting the suggested small business 
thresholds.
    The rules the Commission adopted for LMS define a ``small 
business'' as an entity with average annual gross revenues for the 
preceding three years not to exceed $15 million. They define a ``very 
small business'' as an entity with average annual gross revenues for 
the preceding three years not to exceed $3 million. Thus, in accordance 
with the Part 1 rules concerning competitive bidding, small businesses 
will receive a 25 percent bidding credit and very small businesses will 
receive a 35 percent bidding credit.

[[Page 2902]]

    The WCS auction closed on April 25, 1997. In the expedited 
rulemaking proceeding for this service, the Commission adopted tiered 
small business size standards and associated bidding credits. The 
Commission took this action to ensure that small businesses have the 
opportunity to participate in the provision of spectrum-based services, 
as required by Section 309(j) of the Communications Act. The record in 
the WCS proceeding supported the establishment of small business 
provisions. Several commenters urged the Commission to use tiered 
definitions, with levels similar to those employed for broadband PCS. 
As was the case with LMS, none of the commenters discussed capital 
requirements supporting the suggested small business thresholds.
    The Commission adopted the same small business definitions for WCS 
as it did for broadband PCS. Thus, it defined a ``small business'' as 
an entity with average annual gross revenues for the preceding three 
years not to exceed $40 million. The Commission defined a ``very small 
business'' as an entity with average annual gross revenues for the 
preceding three years not to exceed $15 million. The Commission 
established bidding credits of 25 percent for small businesses and 35 
percent for very small businesses.
    The SBA recently informed the Commission that the SBA is unable to 
approve the LMS and WCS definitions because the Commission did not seek 
comment on specific small business proposals in the LMS Further Notice 
and the WCS Notice. Herein, the Commission takes this opportunity to 
solicit comments on the specific small business size standards that it 
adopted for LMS and WCS. Comments are due on or before January 13, 
1999. To file formally, parties must submit an original and four copies 
to the Office of the Secretary, Federal Communications Commission, 
Federal Communications Commission, 445 Twelfth Street, SW., TW-A325, 
Washington, DC 20554. In addition, parties must submit one copy to Amy 
Zoslov, Chief, Auctions and Industry Analysis Division, Wireless 
Telecommunications Bureau, Federal Communications Commission, Room 
5202, 2025 M Street NW., Washington, DC 20554. Comments will be 
available for public inspection during regular business hours in the 
Wireless Telecommunications Bureau Public Reference Room, Room 5608, 
2025 M Street NW., Washington, DC 20554.

Federal Communications Commission.
Shirley S. Suggs,
Chief, Publications Branch.
[FR Doc. 99-1141 Filed 1-13-99; 4:56 pm]
BILLING CODE 6712-01-P